Operating Lease Commitments

3 Months Ended

Feb. 28, 2025

Operating Lease Commitments [Abstract]

OPERATING LEASE COMMITMENTS

NOTE I – 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 three months ended February 28, 2025, 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 February 28, 2025 are as follows:

Twelve Months Ended February 28,

2026	$	295,841
2027		215,650
2028		219,962
2029		224,362
2030		189,132
2031 and after		-
	$	1,144,947

Net rental expense for the three months ended February 28, 2025 and February 29, 2024 were $106,048 and $114,669 respectively, of which $73,509 and $70,556 respectively, was paid to the Related Company.

The remaining weighted average lease term is 4.75 years at February 28, 2025. The weighted average discount rate is 5.25 % at February 28, 2025.