Operating Lease Commitments

12 Months Ended

Nov. 30, 2023

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 $194,000 for the year ended November 30, 2023, 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 2025. Annual minimum rental payments for this space are approximately $73,580.

The Company has a lease to rent additional warehouse space in Hong Kong through November 30, 2025. Annual minimum rental payments for this space are approximately $76,170.

The Company’s future minimum rental commitments at November 30, 2023 are as follows:

Twelve Months Ended November 30,

2024	$	351,957
2025		325,343
2026		210,372
2027		214,580
2028		218,872
2029 and after		412,380
	$	1,733,504

Net rental expense for the years ended November 30, 2023 and November 30, 2022 were $449,057 and $446,474 respectively, of which $278,599 and $275,042 respectively, was paid to the Related Company.