Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.1
Leases
3 Months Ended
Feb. 29, 2020
Leases [Abstract]  
Leases
Note 12– Leases
Effective December 1, 2019, the Company adopted ASU
2016-02,
Leases (Topic 842), using the modified retrospective approach and utilizing the effective date as its date of initial application. As a result, prior periods are presented in accordance with the previous guidance in ASC 840, Leases (“ASC 840”). The Company has elected to apply the ‘package of practical expedients’ which allows the Company to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard.
At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as a
right-of-use
(ROU) assets and short-term and long-term lease liabilities, as applicable. The Company does not have any financing leases.
Operating lease liabilities and their corresponding
right-of-use
assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company believes it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment.
The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew.
 
The following table presents the
right-of-use
asset and short-term and long-term lease liabilities amounts recorded on the consolidated balance sheets as of February 29, 2020:
 
     February 29, 2020  
Assets
  
Operating lease
right-of-use
asset
   $ 496,284  
Liabilities
  
Current portion of operating lease liabilities
   $ 264,798  
Operating lease long term liabilities
     231,677  
  
 
 
 
Total lease liability
   $ 496,475  
  
 
 
 
The maturity of the Company’s lease liabilities at February 29, 2020 were as follows:
 
     Future Operating  
Fiscal Year Ending November 30,
   Lease Payments  
2020 (remaining 9 months)
   $ 213,635  
2021
     284,846  
2022
     23,737  
Less: Imputed interest
     (25,743
  
 
 
 
Present value of lease liabilities
   $ 496,475  
  
 
 
 
The remaining lease term and discount rates are as follows:
 
     February 29, 2020  
Lease Term and Discount Rate
  
Remaining lease term (years)
  
Operating lease
     1.8  
Discount rate (percentage)
  
Operating lease
     5.3
Supplemental cash flow information related to leases is as follows:
 
     Three Months Ended  
     February 29, 2020  
Operating cash outflows from operating leases
   $ 66,300