Leases

12 Months Ended

Apr. 30, 2022

Effective May 1, 2021, the Company adopted the new lease accounting standard using the modified retrospective approach. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the Company to carry forward the historical lease classification. The Company elected to apply the short-term lease measurement and recognition exemption in which right-of-use assets (“ROU”) and lease liabilities are not recognized for short-term leases. Adoption of this standard resulted in the recording of operating lease ROU assets of $4.0 million and corresponding operating lease liabilities of $4.0 million. The standard did not materially affect the condensed consolidated statements of operations and had no impact on cash flows.

The Company determines if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets also include any initial direct costs and prepayments less lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. As the rate implicit in each lease is not readily determinable, the Company uses its collateralized incremental borrowing rate based on the information available at the lease commencement date, including lease term, in determining the present value of lease payments. Lease expense for these leases is recognized on a straight line basis over the lease term. The Company's leases include office space located in the United States and other international locations, which are all classified as operating leases.

During the year ended April 30, 2022, the Company entered into a sublease agreement whereby the Company will lease an office space located in San Jose, California (the “HQ Lease”). The office space will serve as the Company’s corporate headquarters and include engineering, marketing and administrative

functions. The HQ Lease has a term of 103 months from the contract commencement date in April 2022. The right of use assets and operating lease liabilities associated with the HQ Lease as of April 30, 2022 were $13.8 million and $14.2 million respectively.

Lease expense and supplemental cash flow information are as follows (in thousands):


	Year Ended
	April 30, 2022
Operating lease expenses	$	3,017
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,588
Right-of-use assets obtained in exchange for lease obligation	$	15,543

The aggregate future lease payments for operating leases as of April 30, 2022 are as follows (in thousands):


Fiscal Year	Operating leases
2023	$	3,316
2024	3,136
2025	2,645
2026	2,248
2027	2,150
Thereafter	7,796
Total lease payments	21,291
Less: Interest	4,102
Present value of lease liabilities	$	17,189

The aggregate future lease payments for operating leases as of April 30, 2021 are as follows (in thousands):


Fiscal Year	Operating leases
2022	$	2,421
2023	866
2024	846
2025	397
Total lease payments	$	4,530

As of April 30, 2022, the weighted average remaining lease term for the Company's operating leases is 7.50 years and the weighted average discount rate used to determine the present value of the Company's operating leases is approximately 6%.