The Company leases office space under the terms of noncancelable operating leases that expire at various dates through November 2026. Certain operating lease agreements provide for an annual 2.75% escalation of the base rent. The Company is also responsible for operating expenses, which are classified as variable lease costs. Lease terms may include options to extend or terminate the lease, typically at the Company’s own discretion. Renewal options are regularly evaluated and the renewal period will be included in the lease term when exercise of the renewal option is considered reasonably certain. There are no active leases that have a renewal option that is reasonably certain of being exercised.

The Company holds leases that include both lease (e.g., payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs). As the Company has elected the practical expedient to group lease and non-lease components for all leases, these are accounted for as a single lease component. The Company's leases do not include any residual value guarantees or material restrictive covenants.

Lease expense for both operating and finance leases is recognized on a straight-line basis over the lease term and is recorded in operating expenses on the consolidated statements of operations. Interest expense incurred on finance lease liabilities is calculated using the effective interest method and is recorded in interest expense on the consolidated statements of operations.

The lease balances are located in the following positions on the consolidated balance sheet.


	Balance Sheet Location	April 30, 2023		January 31, 2023
Assets
Operating	Deposits and other assets	$	1,780	$	1,885
Financing	Property and equipment, net		172		205

Liabilities
Current
Operating	Other current liabilities	$	622	$	607
Financing	Other current liabilities		131		130
Non-current
Operating	Other long-term liabilities		1,883		2,047
Financing	Other long-term liabilities		72		81

Total lease costs for the three months ended April 30, 2023 and 2022 were:


	Three Months Ended		Three Months Ended
	April 30, 2023		April 30, 2022
Operating lease cost	$	146	$	341
Short-term lease cost		626		542
Variable lease cost		24		46
Finance lease cost:
Amortization of right-of-use assets		32		23
Interest on lease liabilities		4		1
Total finance lease cost	$	36	$	24

The following table summarizes future scheduled lease payments as of April 30, 2023:


	Operating Leases		Finance Leases
Remaining nine months of fiscal 2024		566		132
2025		775		48
2026		797		45
2027		658		-
Total	$	2,796	$	225
Less: Imputed Interest		291		22
Present value of net lease payments	$	2,505	$	203

Lease liability, current portion		622		131
Lease liability, net of current portion		1,883		72
Total lease liability	$	2,505	$	203

Supplemental information and non-cash activities related to operating and finance leases as of April 30, 2023 and 2022 are as follows:


Cash paid for amounts included in the measurement of lease liabilities as of April 30, 2023
Operating cash flows from operating leases	$	189
Operating cash flows from finance leases		4
Financing cash flows from finance leases		12
	$	205
Weighted average remaining lease term (in years)
Operating leases		3.58
Finance leases		1.80
Weighted average discount rate
Operating leases		6.36	%
Finance leases		9.95	%


Cash paid for amounts included in the measurement of lease liabilities as of April 30, 2022
Operating cash flows from operating leases	$	416
Operating cash flows from finance leases		1
Financing cash flows from finance leases		96
	$	513
Weighted average remaining lease term (in years)
Operating leases		4.33
Finance leases		1.75
Weighted average discount rate
Operating leases		6.36	%
Finance leases		5.67	%

On November 30, 2023, the Company terminated the lease for and vacated its McLean Virginia headquarters. See Note 13, Subsequent Events, for additional information.