(

)

Assets Held for Lease

Major components of assets held for lease are:

Assets Held for Lease
	November 30, 2019		November 30, 2018
West Union Facility	$	-	$	878,079
Modular Buildings		713,782		992,046
	$	713,782	$	1,870,125

December 14, 2018,

the West Union facility and remaining assets were sold for

$900,000.

The Company recognized approximately

$216,000

related to the impairment of this asset in the

2018

fiscal year, which was attributable to the selling price less commissions. The Company also incurred

$235,000

of mold remediation expense and scrapped

$67,000

worth of inventory due to mold contamination in the

2018

fiscal year. Both the remediation cost and inventory scrap have been included in other income (expense) on the consolidated statements of operations.

The Company’s Modular Buildings segment enters into leasing arrangements with customers from time-to-time. The Company had

five

small leased buildings at

November 30, 2019

compared to

seven

November 30, 2018.

Rents recognized in sales were related to the leasing of modular buildings as a part of the normal course of business operations of the Modular Buildings segment. Rents recognized from assets held for lease included in sales on the consolidated statements of operations during the

2019

fiscal year were

$674,000

compared to

$373,000

in the

2018

fiscal year. Rents related to the West Union facility in the Agricultural Products segment were recognized in other income as such income was outside of the scope of this segment’s normal business operations. Rents recognized from assets held for lease included in other income (expense) on the consolidated statements of operations during the

2019

fiscal year were

$2,500

compared to

$44,000

in the

2018

fiscal year.

Future minimum lease receipts from assets held for lease are as follows:

Year Ending November 30,			Amount
2020			$	283,989