Leases, Commitments and Contingencies

12 Months Ended

Apr. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

The Company recognizes lease assets and lease liabilities with respect to the rights and obligations created by leased assets previously classified as operating leases. The Company elected to:

•Record the impact of adoption using a modified retrospective method with any cumulative effect as an adjustment to retained earnings (accumulated deficit) as opposed to restating comparative periods to reflect the effects of applying the new standard.

•Elect the package of three transition practical expedients which alleviate the requirements to reassess embedded leases, lease classification and initial direct costs for leases that commenced prior to the adoption date.

•Elected to use the short-term lease recognition exemption for all asset classes. This means, for those leases that qualify, the Company will not recognize right-of-use ("ROU") assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets.

The Company has operating type leases for real estate and equipment in both the U.S. and internationally and financing leases for equipment in the United States. ROU assets totaled $7,573,000 and $9,279,000 at April 30, 2022 and 2021, respectively. Operating cash paid to settle lease liabilities was $2,019,000 and $1,799,000 for the fiscal year ended April 30, 2022 and 2021, respectively. The Company's leases have remaining lease terms of up to 8 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expense was $3,067,000 for the twelve months ended April 30, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $1,048,000. Operating lease expense was $2,854,000 for the fiscal year ended April 30, 2021, inclusive of period cost for short-term leases, not included in lease liabilities, of $1,055,000.

At April 30, 2022, the weighted average remaining lease term for the capitalized operating leases was 5.8 years and the weighted average discount rate was 4.1%. At April 30, 2021, the weighted average remaining lease term for the capitalized operating leases was 5.9 years and the weighted average discount rate was 4.1%. For the financing leases, the weighted average remaining lease term was 3.8 years and the weighted average discount rate was 6.6% at April 30, 2022 as compared to 4.3 years and 10.0% at April 30, 2021. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable.

Future minimum payments under the non-cancelable lease arrangements for the fiscal years ending April 30 are as follows:


($ in thousands)	Operating		Financing
2023	$	1,849	$	148
2024	1,476		90
2025	1,432		90
2026	1,221		71
2027	996		—
Thereafter	1,847		—
Total Minimum Lease Payments	8,821		399
Imputed Interest	(1,323)		(45)
Total	$	7,498	$	354

The Company is involved in certain claims and legal proceedings in the normal course of business which management believes will not have a material adverse effect on the Company's consolidated financial condition or results of operations.