Lease Obligations

6 Months Ended

Nov. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

7. LEASE OBLIGATIONS

The Company leases real and personal property in the normal course of business under various operating leases. The Company uses operating leases for facility space and automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company.

Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities upon a remeasurement event.

The net assets and liabilities related to operating leases were as follows (in thousands):


Lease Type	November 30, 2024		June 1, 2024
Right of use lease assets	$	2,321	$	2,760

Lease liabilities current		1,075		1,169

Lease liabilities non-current		1,246		1,591

The components of lease costs were as follows (in thousands):


		Three Months Ended
		November 30, 2024		December 2, 2023
Consolidated operating lease expense	Operating expenses	$	419	$	417


		Six Months Ended
		November 30, 2024		December 2, 2023
Consolidated operating lease expense	Operating expenses	$	854	$	871

The approximate future minimum lease payments under operating leases at November 30, 2024 were as follows (in thousands):


Fiscal Year	Operating Leases
Remaining 2025	$	664
2026		981
2027		451
2028		223
2029		142
Total lease payments		2,461
Less imputed interest		140
Net minimum lease payments	$	2,321

The weighted average remaining lease terms and interest rates of leases held by the Company as of November 30, 2024 and December 2, 2023 were as follows:


Operating Lease as of:	Weighted Average Remaining Lease Term in Years	Weighted Average Interest Rate
November 30, 2024	4.8	4.8%
December 2, 2023	2.3	4.2%

The cash activities associated with our leases for the three month and six month periods ended November 30, 2024 and December 2, 2023 were as follows (in thousands):


		Three Months Ended
Cash Flow Source	Classification	November 30, 2024		December 2, 2023

Operating cash flows from operating leases	Operating activities	$	343	$	201

		Six Months Ended
Cash Flow Source	Classification	November 30, 2024		December 2, 2023

Operating cash flows from operating leases	Operating activities	$	696	$	312