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RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

6 Months Ended

Oct. 31, 2024

NOTE F – RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

The Company’s leases primarily represent offices, warehouses, vehicles, manufacturing facilities and Research and Development (“R&D”) facilities which expire at various times through 2029 and are operating leases. Contractual arrangements are evaluated at inception to determine if the agreement contains a lease.

The Company elected the practical expedient for short-term leases which allows leases with terms of 12 months or less to be recorded on a straight-line basis over the lease term without being recognized on the consolidated balance sheets.

The table below presents right-of-use (“ROU”) assets and liabilities recorded on the respective consolidated balance sheets as follows (in thousands):

	October 31, 2024		April 30, 2024
Assets
Operating lease ROU assets	$	5,276	$	6,036

Liabilities
Operating lease liabilities (short-term)		1,301		1,640
Operating lease liabilities (long-term)		4,044		4,545
Total lease liabilities	$	5,345	$	6,185

Total operating lease expense was $0.5 million and $0.9 million for the three and six months ended October 31, 2024, respectively, the majority of which is included in cost of revenues and the remaining amount in selling and administrative expenses on the unaudited condensed consolidated statements of operations. Total operating lease expense was $0.5 million and $0.9 million for the three and six months ended October 31, 2023, respectively, the majority of which is included in cost of revenues and the remaining amount in selling and administrative expenses on the unaudited condensed consolidated statements of operations.

The maturities of lease liabilities at October 31, 2024 are as follows:

Fiscal Year Ending April 30,
(in thousands)

Remainder of 2025	$	662
2026		1,362
2027		964
2028		1,262
2029		1,389
Thereafter		587
Total lease payments		6,226
Less imputed interest		(881	)
Present value of future lease payments		5,345
Less current obligations under leases		(1,301	)
Long-term lease obligations		4,044

As of October 31, 2024 and 2023, the weighted-average remaining lease term for all operating leases was 4.70 years and 5.27 years, respectively. The Company does not generally have access to the rate implicit in the leases and therefore selected a rate that is reflective of companies with similar credit ratings for secured debt as the discount rate. The weighted average discount rate for operating leases as of October 31, 2024 and 2023, was 6.38% and 6.28%, respectively.