NOTE
14 OPERATING LEASES
As of May 31, 2026, the Company has total two separate operating lease agreements for an office space and a warehouse in PRC with remaining lease terms of from 3 month to 22 months.” Leases with an initial term of 12 months or less are not recorded on the balance sheet; Short-term lease expense was $15,941 and nil for the year ended May 31, 2026 and 2025. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
The
following table provides a summary of leases as of May 31, 2026 and May 31, 2025:
SUMMARY OF OPERATING LEASES ASSETS AND LIABILITIES
| Assets/liabilities | |
Classification | |
May 31, 2026 $ | | |
May 31, 2025 $ | |
| Assets | |
| |
| | |
| |
| Operating lease right-of-use assets | |
Operating lease assets | |
| 32,131 | | |
| 13,075 | |
| | |
| |
| | | |
| | |
| Liabilities Current | |
| |
| | | |
| | |
| Operating lease liability - current | |
Current operating lease liabilities | |
| 23,279 | | |
| 13,611 | |
| | |
| |
| | | |
| | |
| Long-term | |
| |
| | | |
| | |
| Operating lease liability – net of current portion | |
Long-term operating lease liabilities | |
| 8,852 | | |
| - | |
| | |
| |
| | | |
| | |
| Total lease liabilities | |
| |
| 32,131 | | |
| 13,611 | |
The
operating lease expense for the year ended May 31, 2026 and 2025 were as follows:
SCHEDULE OF OPERATING LEASE EXPENSE
| | |
| |
As of May 31, | |
| Lease cost | |
Classification | |
2026 | | |
2025 | |
| | |
| |
$ | | |
$ | |
| Operating lease cost | |
General and administrative Expenses | |
| 52,281 | | |
| 77,837 | |
Maturities
of operating lease liabilities as of May 31, 2026 were as follows:
SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES
| Maturity of Lease Liabilities | |
Operating Leases $ | |
| 2027 | |
| 23,816 | |
| 2028 | |
| 8,978 | |
| Total lease payments | |
| 32,794 | |
| Less: interest | |
| (663 | ) |
| Present value of lease payments | |
| 32,131 | |
Maturities
of operating lease liabilities as of May 31, 2025, were as follows:
| Maturity of Lease Liabilities | |
Operating
Leases $ | |
| Remaining of 2026 | |
| 13,707 | |
| Year One | |
| 13,707 | |
| 2027 | |
| - | |
| Year Two | |
| - | |
| Total lease payments | |
| 13,707 | |
| Less: interest | |
| (96 | ) |
| Present value of lease payments | |
| 13,611 | |
Supplemental
information related to operating leases was as follows:
SCHEDULE
OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES
| | |
For The Year Ended May 31, | |
| | |
2026 | | |
2025 | |
| | |
$ | | |
$ | |
| Cash paid for amounts included in the measurement of lease liabilities | |
| 52,566 | | |
| 73,690 | |
| New operating lease assets obtained in exchange for operating lease liabilities | |
| 70,801 | | |
| 17,463 | |
| Weighted average remaining lease term | |
| 0.72 year | | |
| 0.29 year | |
| Weighted average discount rate | |
| 3.00 | % | |
| 4.75 | % |
For
the year ended May 31, 2026 and 2025, the amortization of the operating lease right of use assets are $51,745 and $75,432 respectively.
|