Leases

6 Months Ended

May 31, 2025

Leases

Leases

5)    Leases

(a) Right-of-use asset

	in thousands of dollars
	$
Balance as at November 30, 2024	155
Net amortization	(19)
Balance as at May 31, 2025	136

(b) Lease liabilities

The Company’s lease arrangement consists of an operating lease for the corporate office.  On July 1, 2024, the Company entered into a four-year lease for office space expiring in June 2028.  The lease has no extension option.  The current monthly lease payment is approximately CDN$9,500 consisting of both base rent and variable operating costs.

Total lease expense recorded within general and administrative expenses was comprised of the following components:

	in thousands of dollars
	Six months ended	Six months ended
	May 31, 2025	May 31, 2024
	$	$
Operating lease costs	25	97
Variable lease costs	5	95
Total lease expense	30	192

Variable lease costs consist primarily of the Company’s portion of operating costs associated with the office space lease as the Company elected to apply the practical expedient not to separate lease and non-lease components.  For the six-month period ended May 31, 2025, variable lease costs have been reduced by a refund received for adjusted operating costs.

As at May 31, 2025, the weighted-average remaining lease payment term is 2.9 years and the weighted-average discount rate is 9%. Significant judgment was used in the determination of the incremental borrowing rate which included estimating the Company’s credit rating.

Supplemental cash flow information relating to our leases during the six-month period ending May 31, 2025 is as follows:

● Cash paid for base rent included in the measurement of lease liabilities was $23,597

Future minimum payments relating to the lease recognized in our balance sheet as of May 31, 2025 are as follows:

	in thousands of dollars
	May 31, 2025
Fiscal year	$
2025	25
2026	50
2027	50
2028	25
2029	—
Total undiscounted lease payments	150
Effect of discounting	(18)
Present value of lease payments recognized as lease liability	132
Less: current portion of lease liability	(39)
Long-term portion of lease liability	93