Note 9: Right of Use Assets and Liabilities – Operating Leases

The Company has operating leases for offices and warehouses. The Company’s leases have remaining lease terms of 1 year to 10.5 years, some of which include options to extend.

The Company’s lease expense for the three months ended February 29, 2024 and February 28, 2023 was entirely comprised of operating leases and amounted to $97,658 and $82,858, respectively. The Company’s lease expense for the nine months ended February 29, 2024 and February 28, 2023 was entirely comprised of operating leases and amounted to $277,945 and $244,021, respectively.

The Company’s right of use (“ROU”) asset amortization for the three months ended February 29, 2024 and February 28, 2023 was $89,736 and $86,749, respectively. The Company’s ROU asset amortization for the nine months ended February 29, 2024 and February 28, 2023 was $186,424 and $174,067, respectively.

The Company has recorded total right of use assets of $4,384,520 and liabilities in the amount of $4,297,720 through February 29, 2024.

Right of use assets – operating leases are summarized below:

Operating lease liabilities are summarized below:

Maturity analysis under these lease agreements is as follows: