Note 7: 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 November 30, 2024 and 2023 was entirely comprised of operating leases and amounted to $140,612 and $123,408, respectively. The Company’s lease expense for the six months ended November 30, 2024 and 2023 was entirely comprised of operating leases and amounted to $278,097 and $257,611, respectively.

The Company’s right of use (“ROU”) asset amortization for the three months ended November 30, 2024 and 2023 was $106,422 and $89,736, respectively. The Company’s ROU asset amortization for the six months ended November 30, 2024 and 2023 was $209,922 and $186,424, respectively.

The Company has recorded total right of use assets of $4,384,520 and liabilities in the amount of $4,341,120 through November 30, 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: