Note 8 - Lease Commitments

6 Months Ended

May 31, 2023

Notes to Financial Statements

Commitments Disclosure [Text Block]

8. 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 May 31, 2023 the remaining lease term was 10 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 May 31, 2023 are as follows:

	Undiscounted Rent Payments
Year Ending November 30:
2023		59,382
2024		40,177
Total Undiscounted Rent Payments	$	99,559
Present Value Discount		(1,957	)
Present Value	$	97,602
Short-term lease liability	$	97,602
Long-term lease liability		-
Total Operating Lease Liability	$	97,602