Leases

9 Months Ended

Feb. 29, 2020

Leases [Abstract]

Leases

10. Leases

The Company leases the space for its three offices. Under ASC 842, at contract inception we determine whether the contract is or contains a lease and whether the lease should be classified as an operating or finance lease. Operating leases are in right-of-use assets and operating lease liabilities in our consolidated condensed balance sheets.

The Company's leases for its three offices are classified as operating leases.

The lease agreements expire on December 31, 2020, February 28, 2021 and August 31, 2022, respectively, and do not include any renewal options.

In addition to the monthly base amounts in the lease agreements, the Company is required to pay real estate taxes and operating expenses during the lease terms.

For the three months and nine months ended February 29, 2020, the Company's operating lease expense for these leases was $98,000 and $294,000, respectively.

Future minimum lease payments under non-cancellable operating leases as of February 29, 2020 were as follows:

(note: payments related to the lease expiring February 28, 2021 are not included below because it is a one year lease)

Twelve Months Ended February 28,
2021	$	229,867
2022		160,120
2023		80,990
Total undiscounted operating lease payments		470,977
Less imputed interest		36,405
Present value of operating lease payments	$	434,572

The following table sets forth the right-of-use assets and operating lease liabilities as of February 29, 2020:

Assets
Right-of-use assets	$	431,054
Liabilities
Current operating lease liabilities	$	206,380
Long-term operating lease liabilities		228,192
Total operating lease liabilities	$	434,572

The weighted average remaining lease term for the Company's operating leases is 1.8 years.