v3.26.1
Note 19 - Leases
6 Months Ended
May 31, 2026
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

19.

LEASES

 

Operating Leases

The Company has operating leases for real estate in the United States and does not have any finance leases.

 

In 2019, the Company entered into a real estate lease for office space in Andover, Massachusetts.  In August 2021, the lease was amended to include additional space and extend the term of the existing space by one year. The new lease expiration date is February 29, 2028.  

 

The Company leased an office and warehouse space in South Africa. The lease, which was originally set to expire in December 2024, was extended to December 2025 and not renewed.

 

Commencing in July 2024, the Company entered into a new operating lease for warehouse and retail office space located in Fort Wayne, Indiana. The lease term is for five years, commencing on July 15, 2024 and expiring on July 14, 2029.

 

The Company also leases office space in Las Vegas, Nevada, which expires on January 31, 2027Commencing in April 2025, the Company entered into another operating lease for office space located in Las Vegas, Nevada. The lease term is for three years, commencing on April 1, 2025 and expiring on April 30, 2028.

 

Commencing in August 2024, the Company entered into a new operating lease for retail office space located in Salem, New Hampshire. The lease term is for five years, commencing on August 22, 2024 and expiring on August 21, 2029.

 

Commencing in August 2024, the Company entered into a new operating lease for retail office space located in Scottsdale, Arizona. The lease term is for eight years, commencing on August 27, 2024 and expiring on July 31, 2032.

 

Commencing in November 2024, the Company entered into a new operating lease for retail office space located in Franklin, Tennessee. The lease term is for five and a half years, commencing on November 1, 2024 and expiring on April 30, 2030.

 

Commencing in October 2025, the Company assumed two operating leases for retail suites located in Santa Clarita, California, each with a two-year term expiring on September 14, 2027. The Company had subleased both suites to a third-party dealer. In May 2026, the subtenant notified the Company of its intent to exit the subleased premises, with the sublease terminating effective June 30, 2026. As a result of the sublease termination, the Company recognized an immaterial impairment loss on the associated right-of-use assets during the three and six months ended May 31, 2026. The Company remains the primary obligor under the head leases and will bear the remaining lease obligations through September 2027.

 

Certain of the Company’s leases contain options to renew and extend lease terms and options to terminate leases early. Reflected in the right-of-use asset and lease liability on the Company’s balance sheets are the periods provided by renewal and extension options that the Company is reasonably certain to exercise, as well as the periods provided by termination options that the Company is reasonably certain to not exercise.

 

For the three and six months ended May 31, 2026 and 2025, the elements of lease expense were as follows (in thousands):

 

  

Three Months Ended

  

Three Months Ended

  

Six Months Ended

  

Six Months Ended

 
  

May 31, 2026

  

May 31, 2025

  

May 31, 2026

  

May 31, 2025

 

Lease Cost:

                

Operating lease cost

 $208  $190  $414  $370 

Short-term lease cost

  42   20   77   39 

Variable lease cost

  51   -   100   - 

Total lease cost

 $301  $210  $591  $409 
                 

Other Information:

                

Cash paid for amounts included in the measurement of operating lease liabilities

 $181  $135  $357  $240 

Operating lease liabilities arising from obtaining right-of-use assets

 $58  $178  $58  $178 
                 

Operating Leases:

                

Weighted-average remaining lease term (in years)

  3.5   4.3   3.5   4.3 

Weighted-average discount rate

  7.6%  7.9%  7.6%  7.9%

 

Future lease payments under non-cancelable operating leases as of May 31, 2026 are as follows (in thousands):

 

Fiscal Year Ending November 30,

    

2026 (six months)

 $457 

2027

  793 

2028

  407 

2029

  277 

2030

  160 

Thereafter

  226 

Total lease payments

  2,320 

Less: imputed interest

  273 

Present value of operating lease liabilities

 $2,047 

Operating lease liabilities, current

 $777 

Operating lease liabilities, non-current

 $1,270