Note 7 - Leases

12 Months Ended

May 31, 2026

7.	Leases

The Company has operating leases for facilities, office spaces, production equipment and vehicles.

Leases have varying terms with remaining lease terms of up to approximately 30 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.

The table below presents the lease-related assets and liabilities recorded on the balance sheet.

		*May 31,*		*May 31,*
	*Classification on Balance Sheet*	*2026*		*2025*
Assets
Finance lease, right-of-use assets	Capital assets	$	117,976	$	40,308
Operating lease, right-of-use assets	Operating lease, right-of-use assets		42,318		22,279
Total right-of-use asset		$	160,294	$	62,587
Liabilities
Current:
Current portion of finance lease liabilities	Current portion of lease liabilities	$	5,105	$	1,560
Current portion of operating lease liabilities	Current portion of lease liabilities		8,252		5,381
Non-current:
Finance lease liabilities	Lease liabilities		119,682		44,295
Operating lease liabilities	Lease liabilities		38,473		20,630
Total lease liabilities		$	171,512	$	71,866

For the fiscal year ended May 31, 2026, the Company had $4,980 of operating lease expenses, which included an offset of $nil for sublease income. For the fiscal year ended May 31, 2025, the Company had $3,453 of operating lease expenses, which included an offset of $761 for sublease income.

Included in the total lease liabilities is $985 related to disposal groups classified as held for sale. See Note 6 (Capital Assets).

The following table presents the future undiscounted payments associated with lease liabilities as of May 31, 2026:

	*Operating*			*Finance*
	*leases*			*leases*
2027	$	16,724		$	19,067
2028		15,588			19,067
2029		10,236			18,919
2030		6,671			18,683
Thereafter		13,200			148,357
Total minimum lease payments	$	62,419		$	224,093
Imputed interest		(15,694	)		(99,306	)
Obligations recognized	$	46,725		$	124,787