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 $0.02 million per month. 

The Company leases office and warehouse space in South Africa that expires in November 2024. The base rent is approximately $0.01 million per month. In December 2022, the Company early terminated and fully exited the associated lease with no penalties incurred.  The Company entered into a new lease for a larger facility in November 2022.  The base rent is approximately $0.07 million per month.   

The Company leases warehouse and manufacturing space in Fort Wayne, Indiana. The lease expires on July 31, 2025. The base rent is approximately $0.01 million per month.  In November 2021, the Company entered into a new lease which commenced in August 2022.  The lease expires July 31, 2027.  The base rent is approximately $0.02 million per month.  The Company sub-leases the former Fort Wayne facility which commenced in August 2022.  The amount received from the sub-lease is immaterial. 

The Company also leases office space in Las Vegas, Nevada, which expires on January 31, 2027.  The base rent is less than $0.01 million 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 November 30, 2023 and 2022, the elements of lease expense were as follows (in thousands):

The Form 10-K for the fiscal year ended November 30, 2022 incorrectly reported operating lease costs of $2,421.  The amount presented above for operating lease costs in 2022 are revised to the corrected amount of $568.  This change had no impact on previously reported consolidated balance sheets, consolidated results of operations, or shareholders' equity. 

Future lease payments under non-cancelable operating leases as of November 30, 2023 are as follows (in thousands):