LEASES (Tables)

12 Months Ended

May 31, 2022

Leases

SCHEDULE OF FINANCING LEASE

Financing leases consist of the following as of May 31:

	2022			2021
Non-cancelable financing leases	$	2,163,043		$	3,594,007
Less: Current portion of financing leases		(1,630,895	)		(1,745,535	)
Non-cancelable financing leases, net of current portion	$	532,148		$	1,848,472

SCHEDULE OF NON-CANCELABLE FINANCING LEASES

The production equipment under the non-cancelable financing leases as of May 31, 2022 and 2021 was as follows:

	2022			2021
Production equipment under financing leases	$	8,497,798		$	8,473,357
Less: Accumulated amortization		(3,481,223	)		(2,534,688	)
Production equipment under financing leases, net	$	5,016,575		$	5,938,669

SCHEDULE OF OPERATING LEASES

The outstanding liability for right to use assets under operating leases as of May 31, 2022 and 2021 is as follows:

	2022			2021
Liability under operating leases	$	55,535		$	109,013
Less: Current portion		(33,881	)		(56,443	)
Long-term portion of liability under operating leases	$	21,654		$	52,570

SUMMARY OF LEASE ACTIVITY

For the years ended May 31, 2022 and 2021, a summary of lease activity follows:

	2022			2021
Lease Expense
Financing lease expense -
Amortization of right-of-use assets	$	946,535		$	1,012,870
Interest on lease liabilities		127,898			267,729
Operating lease expense		61,881			77,284
Short-term lease expense		1,493,169			1,481,270
Total	$	2,629,483		$	2,839,153
Other Information
Cash paid for amounts included in the measurement of lease liabilities for finance leases -
Operating cash flows	$	127,898		$	267,729
Financing cash flows	$	1,455,404		$	1,861,650
Cash paid for amounts included in the measurement of lease liabilities for operating leases -
Operating cash flows	$	61,881		$	77,284
Right-of-use assets obtained in exchange for lease liabilities – financing lease	$	24,441		$	-
Weighted-average remaining lease term (in years) -
Financing leases		1.3			2.0
Operating leases		1.6			2.1
Weighted-average discount rate -
Financing leases		7.3	%		7.4	%
Operating leases		5.4	%		5.3	%

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

Future minimum lease payments under non-cancelable operating and financing leases as of May 31, 2022, are approximately:

	Operating Leases			Financing Leases
Year ended May 31, 2023	$	33,881		$	1,730,278
Year ended May 31, 2024		20,535			522,249
Year ended May 31, 2025		4,082			17,708
Year ended May 31, 2026		-			4,511
Total lease payments		58,498			2,274,746
Less: Imputed interest		(2,963	)		(111,702	)
Present value of minimum lease payments	$	55,535		$	2,163,044