Note 7 - Lease Commitments

3 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Commitments Disclosure [Text Block]

7.

Lease Commitments

The Company rents its office under an operating lease which requires it to pay base rent, real estate taxes, insurance and general repairs and maintenance. A lease was signed in

June

of

2018,

effective

October 1, 2018,

expiring on

March 31, 2024

with an option to renew for a

5

year period. A

six

month rent abatement and tenant allowance was provided in the lease, with any unused portion to be applied to base rent. The unused portion was determined to be

$21,300.

The renewal option has

not

been included in the measurement of the lease liability.

Monthly rent expense is recognized on a straight-line basis over the term of the lease. At

February

29,

2020

the remaining lease term was

49

months. The operating lease is included in the balance sheet at the present value of the lease payments at a

5.25%

discount rate. The discount rate was considered to be an estimate of the Company’s incremental borrowing rate.

Gross future minimum annual rental commitments as of

February

29,

2020

are as follows:

	Undiscounted Rent Payments
Year Ending November 30:
2020	$	82,892
2021		113,024
2022		115,673
2023		118,322
Thereafter		40,176
Total Undiscounted Rent Payments		470,087
Present Value Discount		(41,233	)
Present Value	$	428,854
Short-term lease liability	$	93,870
Long-term lease liability		334,984
Total Operating Lease Liability	$	428,854