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Financing Obligation

12 Months Ended

Aug. 31, 2025

7. FINANCING OBLIGATION

We previously sold our corporate headquarters campus located in Salt Lake City, Utah, and entered into a 20-year master lease agreement with the purchaser, an unrelated private investment group. The 20-year master lease agreement expired in June 2025, and we elected to not renew the contract. Although the corporate headquarters facility was sold and we had no legal ownership of the property, the applicable accounting guidance prohibited us from recording the transaction as a sale since we subleased a significant portion of the property that was sold. We accounted for the corporate campus lease as a financing obligation on our consolidated balance sheet through its maturity in June 2025.

At August 31, 2025, we were involved in litigation against the former landlord as described in Note 9, Commitments and Contingencies.

The financing obligation on our corporate campus was comprised of the following (in thousands):



AUGUST 31,		2025		2024
Financing obligation payable in
monthly installments of $341 at
August 31, 2024, including
principal and interest, with 2%
annual increases (imputed
interest at 7.7%), through
June 2025	$	-	$	4,424
Less current portion		-		(3,112)
Total financing obligation,
less current portion	$	-	$	1,312

The $1.3 million difference between the carrying value of the financing obligation and the present value of the future minimum financing obligation payments represented the carrying value of the land sold in the financing transaction, which is not depreciated. At the conclusion of the master lease agreement, the remaining financing obligation and carrying value of the land were offset and eliminated from our consolidated financial statements.