- COMMITMENTS AND CONTINGENCIES

6 Months Ended

Nov. 30, 2019

- COMMITMENTS AND CONTINGENCIES [Abstract]

- COMMITMENTS AND CONTINGENCIES

NOTE 6 – COMMITMENTS AND CONTINGENCIES

In 2016, the Company signed a rental agreement for office space in Sri Lanka which terminated on December 31, 2019. This premise was used as a representative office for the customers. The rent expense for each of the six months ended November 30, 2019, and 2018 was $720. The Company is currently negotiating a renewal of the lease agreement.

In 2017, the Company’s Subsidiary signed a rental agreement for office space in Switzerland which will terminate on May 31, 2022. The rent expense for the six months ended November 30, 2019 was $35,315.

The Company implemented a new accounting policy according to the ASC 842, Leases, on June 1, 2019 on a modified retrospective basis and did not restate comparative periods. Under the new policy, the Company recognized approximately $195,394 lease liability as well as right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of November 30, 2019, discounted at the incremental borrowing rate. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.

As of November 30, 2019, and May 31, 2019, the right-of use asset and lease liabilities are as follows:

	November 30, 2019		May 31, 2019
		(unaudited)
Right-of-use asset – operating leases	$	173,041	$	-
Lease Liabilities - Short-term	$	33,388	$	-
Lease Liabilities - Long-term		139,653		-
Total Lease Liabilities	$	173,041	$	-

13

CANNABIS SUISSE CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Lease cost and other information

	Six months ended November 30,
	2019		2018
	(unaudited)		(audited)
Operating lease cost	$	34,465	$	17,248
Weighted average remaining lease term - Operating leases (years)		2.5		-
Weighted average discount rate		3%		-

Required future principal payments under the Company’s lease obligation are set for below:

Year ending May 31

2020 (remaining six months)	$	40,200
2021		79,752
2022		79,752
Total	$	199,704