Operating Lease Commitments

3 Months Ended

Feb. 28, 2022

Operating Lease Commitments [Abstract]

OPERATING LEASE COMMITMENTS

NOTE J – OPERATING LEASE COMMITMENTS

The Company leases its office and warehouse space through 2030 from a corporation that is partly owned by officers/shareholders of the Company (“Related Company”). Annual minimum rental payments to the Related Company approximated $190,000 for the year ended November 30, 2021, and increase at the rate of two 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.

The Company has a lease to rent office space and a warehouse in Hong Kong through June 2023. Annual minimum rental payments for this space are approximately $68,580.

The Company has a lease to rent warehouse space in Hong Kong through December 31, 2022. Annual minimum rental payments for this space are approximately $36,840.

The Company has a lease to rent additional warehouse space in Hong Kong through November 30, 2023. Annual minimum rental payments for this space are approximately $70,908.

The Company’s future minimum rental commitments at February 28, 2022 are as follows:

Twelve Months Ended February 28,

2023	$	362,478
2024		269,553
2025		203,212
2026		207,276
2027		211,422
2028 and after		792,366
	$	2,046,307

Net rental expense for the three months ended February 28, 2022 and February 28, 2021 were $111,572 and $106,217 respectively, of which $68,599 and $67,650 respectively, was paid to the Related Company.