Right-of-use Asset and Lease Liability

3 Months Ended

May 31, 2026

Right-of-use Asset And Lease Liability

Note 10 – Right-of-use Asset and Lease Liability

The Company has entered into lease agreements with various third parties. The terms of operating leases typically range from one to two years. These operating leases are included in “Right-of-use Asset” on the Company’s Condensed Consolidated Balance Sheet and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments is included in “Lease liability” on the Company’s Condensed Consolidated Balance Sheet. Additionally, the Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Company’s Consolidated balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term in the three months ended May 31, 2026.

Information related to the Company's right-of-use assets and related lease liabilities were as follows:


	May 31, 2026		February 28, 2026
Right-of-use asset	(unaudited)
Right-of-use asset, net	$	20,428	$	19,201

Lease liability
Current lease liability	$	10,245	$	10,604
Non-current lease liability		—		—
Total lease liability	$	10,245	$	10,604

Remaining lease term and discount rate				May 31, 2026
Weighted-average remaining lease term				2 months
Weighted-average discount rate				3.68	%

Commitments

The following table summarizes the future minimum lease payments due under the Company’s operating leases as of May 31, 2026:


2026	$	10,277
Less: imputed interest		(32	)
	$	10,245

The following summarizes cash flow information related to leases for the year ended May 31, 2026:


Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from leases	$	10,667