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Leases
 12 Months Ended
Jul. 31, 2024
Leases  
Leases

Note 4—Leases

 

The Company’s leases primarily consist of operating leases for office space. These leases have remaining terms from less than one year to six years. Certain of these leases include renewal options that may be exercised and/or options to terminate the lease. The Company has concluded that it is not reasonably certain that it would exercise any of these options.

 

The Company leases office and parking space in a building and parking garage located at 520 Broad St, Newark, New Jersey that was previously owned by Rafael Holdings, Inc. (“Rafael”), a related party. On August 22, 2022, Rafael sold the building and parking garage to an unrelated third party. The Company’s lease in that property continues with the new owner. The Company leases office space in Israel from Rafael. Howard S. Jonas, the Chairman of the Company and the Chairman of the Company’s Board of Directors is also the Chairman of the Board of Directors and Executive Chairman of Rafael. The Newark lease expires in April 2025 and the Israel lease expires in July 2025. In fiscal 2024, fiscal 2023, and fiscal 2022, the Company incurred lease costs in connection with the Rafael leases of $0.1 million, $0.3 million (which excludes Newark lease costs after August 22, 2022), and $2.0 million, respectively. Lease costs incurred in connection with the Rafael leases are included in operating lease cost in the table below.

 

 

 

Supplemental disclosures related to the Company’s operating leases were as follows:

 

Year ended July 31
(in thousands)		  2024   2023   2022 
Operating lease cost  $2,557   $3,175   $2,901 
Short-term lease cost   924    1,095    1,348 
TOTAL LEASE COST  $3,481   $4,270   $4,249 
                
Cash paid for amounts included in the measurement of lease liabilities:                
Operating cash flows from operating leases  $2,588   $3,262   $2,857 

 

July 31  2024   2023 
Weighted-average remaining lease term-operating leases   2.6 years    2.3 years 
Weighted-average discount rate-operating leases   5.6%   3.7%

 

In fiscal 2024, fiscal 2023, and fiscal 2022, the Company obtained right-of-use assets of $0.9 million, $1.8 million, and $2.2 million, respectively, in exchange for new operating lease liabilities. In addition, in fiscal 2024, the Company modified its lease at 520 Broad St, Newark, New Jersey and reduced the related right-of-use asset by $0.8 million and the related operating lease liability by $0.9 million.

 

The Company’s aggregate operating lease liability was as follows:

 

July 31
(in thousands)		  2024   2023 
Operating lease liabilities included in “Other current liabilities”  $1,866   $2,861 
Operating lease liabilities included in noncurrent liabilities   1,533    2,881 
TOTAL  $3,399   $5,742 

 

Future minimum maturities of operating lease liabilities were as follows:

 

(in thousands)    
Year ending July 31:     
2025  $2,002 
2026   699 
2027   490 
2028   233 
2029   185 
Thereafter   62 
Total lease payments   3,671 
Less imputed interest   (272)
Total operating lease liabilities  $3,399