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Leases

12 Months Ended

Apr. 30, 2020

(6) Leases

Lessor Information

As of April 30, 2020, the Company has one lease which has been classified as an operating lease per accounting guidance contained within ASC Topic 842, “Leases”. The Company’s remaining operating lease term on this lease is 18 months. The maturity of lease payments remaining on this lease is immaterial. The accounting of the operating lease income according to ASC Topic 842, “Leases” is similar to the accounting in prior years.

Lessee Information

The Company has one lease for its facility located in Monroe Township, New Jersey that is used as warehouse/production space and the Company’s principal offices and corporate headquarters. The initial lease term is for 7 years with an option to extend the lease for another 5 years. The lease is classified as an operating lease. The operating lease is included in right-of-use assets, lease liabilities- current and lease liabilities- long-term on the Company’s Consolidated Balance Sheets. The Company has elected the package of practical expedients which applies to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did not need to reassess whether any existing contracts are or contain leases, the lease classification for any existing leases and initial direct costs for any existing leases.

Right-of-use asset and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at the commencement date. When the implicit rate of the lease is not provided or cannot be determined, the Company used the incremental borrowing rate based on the information available at the effective date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The renewal options have not been included in the lease term as they are not reasonably certain of exercise. Lease expense for minimum lease payments is recognized on a straight- line basis over the lease term and consists of interest on the lease liability and the amortization of the right of use asset. Variable lease expenses, if any, are recorded as incurred. The operating lease expense in the Consolidated Statement of Operations for the twelve months ended April 30, 2020 was $317,000. The operating cash flows from operating leases cash payments for the twelve months ended April 30, 2020 was $322,000.

Information related to the Company’s right-of use assets and lease liabilities as of April 30, 2020 is as follows:

	April 30, 2020
		(in thousands)

Operating lease:
Operating right-of-use asset, net	$	1,165

Right-of-use liability- current		229
Right-of-use liability- long term		1,078
Total lease liability	$	1,307

Weighted average remaining lease term- operating leases		4.49 years
Weighted average discount rate- operating leases		8.5	%

Total remaining lease payments under the Company’s operating leases are as follows:

	April 30, 2020
		(in thousands)

2021		331
2022		341
2023		352
2024		362
Thereafter		184
Total future minimum lease payments	$	1,570
Less imputed interest		(263	)
Total	$	1,307

ASC 840 Disclosure

The Company elected the modified retrospective transition method and is required to present previously disclosed information under the prior accounting standard for leases.

Lessee Information

Future minimum lease payments under the Company’s operating lease as of April 30, 2019 were as follows:

	April 30, 2019
		(in thousands)

2020		322
2021		331
2022		341
2023		352
2024		362
Thereafter		184
	$	1,892