Operating Leases

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

In 2019, the Company had 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 base rent is approximately $15.0 thousand per month. 

The Company leases office and warehouse space in South Africa that expires in November 2024. The base rent during the three months ended February 28, 2022 is approximately $5.0 thousand per month.  In October 2021, the Company entered into an additional lease in South Africa for a storage facility. The lease expires October 31, 2022.

The Company leased real estate in Fort Wayne Indiana. The lease was to expire on February 28, 2022. In February 2021, the Company entered into a lease termination agreement with the landlord. Upon termination, the Company was required to pay a termination fee of approximately $0.02 million. In November 2021, the Company entered into a lease to replace this facility which will commence in April 2022.  The lease expires March 31, 2027.  In addition, the Company leases warehouse and manufacturing space in Fort Wayne, Indiana. The lease expires on July 31, 2025. The base rent is approximately $8.0 thousand per month. 

The Company also leases office space in Las Vegas, Nevada. The lease expires on August 31, 2022. The base rent is approximately $4.0 thousand per month.  In anticipation of not renewing the aforementioned space, the Company entered into a new lease on December 1, 2021, which expires on January 31, 2027.  The base rent is approximately $4.0 thousand per month. 

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.

As of February 28, 2022 and 2021 the elements of lease expense were as follows (in thousands):

Future lease payments under non-cancelable operating leases as of February 28, 2022 are as follows (in thousands):