Leases

3 Months Ended

Aug. 31, 2020

Leases [Abstract]

Leases

9. 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 ended August 31, 2020 and 2019, the Company’s operating lease expense for these leases was $115,422 and $96,958, respectively.

Future minimum lease payments under non-cancellable operating leases as of August 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 August 31,
2021	$	187,692
2022		161,708
Total undiscounted operating lease payments		349,400
Less imputed interest		22,753
Present value of operating lease payments	$	326,647

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

Assets
Right-of-use assets	$	322,371
Liabilities
Current operating lease liabilities	$	170,915
Long-term operating lease liabilities		155,732
Total operating lease liabilities	$	326,647

The weighted average remaining lease term for the Company’s operating leases is 1.6 years.