Financing Lease Obligations

3 Months Ended

Feb. 28, 2022

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 February 28, 2022 are as follows:

2022	$	6,521
Total	$	6,521
Less: interest portion		222
Present value of net minimum lease payments	$	6,299
Less: current portion		6,299
Non-current portion	$	-

Financing lease obligations mature as follows:

Twelve months ended February 28, 2022:

2022	$	6,299
Principal payments remaining	$	6,299