Rental Commitments

12 Months Ended

Nov. 30, 2018

Rental Commitments [Abstract]

RENTAL COMMITMENTS

NOTE K – RENTAL COMMITMENTS

The Company leases its office and warehouse space through 2020 from a corporation that is controlled by officers/shareholders of the Company (“Related Company”).  Annual minimum rental payments to the Related Company approximated $180,000 for the year ended November 30, 2018, and increase at the rate of three per cent per annum throughout the lease term.

Pursuant to the lease, rent expense charged to operations differs from rent paid because of scheduled rent increases.  Accordingly, the Company has recorded deferred rent.  Rent expense is calculated by allocating to rental payments, including those attributable to scheduled rent increases, on a straight line basis, over the lease term.

In June 2015, the Company renewed its lease to rent office space and a warehouse in Hong Kong for two years and is currently in negotiations to renew the lease. Annual minimum rental payments for this space are approximately $58,500.

In January 2019, the Company entered into a lease to rent warehouse space in Hong Kong for two years. Annual minimum rental payments for this space are approximately $36,840.

The Company’s future minimum rental commitments at November 30, 2018 are as follows:

Twelve Months Ended November 30,

2019	$	186,912
2020	$	191,994
2021	$	3,070
	$	381,976

Net rental expense for the years ended November 30, 2018 and November 30, 2017 were $317,210 and $314,746 respectively, of which $260,241 and $256,721 respectively, was paid to the Related Company.