Note 7 - Leases

12 Months Ended

May 31, 2025

7.	Leases

The Company has operating leases for facilities, office spaces, production equipment and vehicles.

Leases have varying terms with remaining lease terms of up to approximately 20 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.

The table below presents the lease-related assets and liabilities recorded on the balance sheet.

		*May 31,*		*May 31,*
	*Classification on Balance Sheet*	*2025*		*2024*
Assets
Finance lease, right-of-use assets	Capital assets	$	40,308	$	43,993
Operating lease, right-of-use assets	Operating lease, right-of-use assets		22,279		16,101
Total right-of-use asset		$	62,587	$	60,094
Liabilities
Current:
Current portion of finance lease liabilities	Current portion of lease liabilities	$	1,560	$	1,092
Current portion of operating lease liabilities	Current portion of lease liabilities		5,381		3,999
Non-current:
Finance lease liabilities	Lease liabilities		44,295		43,948
Operating lease liabilities	Lease liabilities		20,630		16,474
Total lease liabilities		$	71,866	$	65,513

For the fiscal year ended May 31, 2025, the Company had $3,453 of operating lease expenses, which included an offset of $761 for sublease income. For the fiscal year ended May 31, 2024, the Company had $4,582 of operating lease expenses, which included an offset of $738 for sublease income.

The following table presents the future undiscounted payments associated with lease liabilities as of May 31, 2025:

	*Operating*			*Finance*
	*leases*			*leases*
2026	$	7,171		$	4,515
2027		6,840			4,515
2028		5,786			4,515
2029		2,846			4,368
Thereafter		10,948			66,570
Total minimum lease payments	$	33,591		$	84,483
Imputed interest		(7,580	)		(38,628	)
Obligations recognized	$	26,011		$	45,855