Operating Lease Commitments

3 Months Ended

Feb. 29, 2020

Rental Commitments [Abstract]

OPERATING LEASE COMMITMENTS

NOTE K – OPERATING LEASE 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, 2019, 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 2019, the Company renewed its lease to rent office space and a warehouse in Hong Kong for two years. Annual minimum rental payments for this space are approximately $68,460.

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 February 29, 2020 are as follows:

Twelve Months Ended February 29,

2021	$	210,838
2022	$	22,820
	$	233,658

Net rental expense for the three months ended February 29, 2020 and February 28, 2019 were $91,678 and $84,814 respectively, of which $66,719 and $65,806 respectively, was paid to the Related Company.