Financing Lease Obligations

9 Months Ended

Aug. 31, 2020

Financing Lease Obligations [Abstract]

FINANCING LEASE OBLIGATIONS

NOTE D – FINANCING LEASE OBLIGATIONS

The Company is obligated under financing leases for telephone equipment. The Company leases equipment under two capital lease arrangements with NEC Financial Services. Pursuant to the leases, the lessor retains actual title to the leased property until the termination of the lease, at which time the equipment can be purchased for one dollar for each lease. The terms of the leases are 60 months with a combined monthly payment of $815, respectively. The assumed interest rates on the leases are 9.342%. The leases terminate in 2022.

Future minimum lease payments under these financing lease obligations as of August 31, 2020 are as follows:

2020	$	9,779
2021	$	9,779
2022	$	1,786
Total	$	21,344
Less: interest portion		2,228
Present value of net minimum lease payments	$	19,116
Less: current portion		8,345
Non-current portion	$	10,771

Financing lease obligations mature as follows:
Twelve Months Ended August 31:
2020	$	8,345
2021	$	9,158
2022	$	1,613
Principal payments remaining	$	19,116