Leases

12 Months Ended

May 31, 2020

Leases [Abstract]

Leases

(3) 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 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 fiscal years ended May 31, 2020 and 2019, the Company's operating lease expense for these leases was $417,000 and $388,000.

Future minimum lease payments under non-cancelable operating leases as of May 31, 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 May 31,
2021	$	208,777
2022		160,912
2023		40,629
Total undiscounted operating lease payments		410,318
Less imputed interest		29,110
Present value of operating lease payments	$	381,208

The following table sets forth the right-of-use assets and operating lease liabilities as of May 31, 2020:

Assets
Right-of-use assets	$	377,182
Liabilities
Current operating lease liabilities	$	188,799
Long-term operating lease liabilities		192,409
		-
Total operating lease liabilities	$	381,208

The weighted average remaining lease term for the Company's operating leases is 1.9 years.