Leases

6 Months Ended

Apr. 30, 2024

Leases

Leases

Note 10. Leases

The Company enters into operating lease agreements for the use of real estate, vehicles, information technology equipment, and certain other equipment. We determine if an arrangement contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The impacts of accounting for operating leases are included in Operating lease right-of-use assets, Operating lease liabilities, and Long-term operating lease liabilities in the Company’s Consolidated Balance Sheets. The Company currently has no finance leases.

Operating lease expense for the three month periods ended April 30, 2024 and 2023 was $0.3 million and $0.4 million, respectively, and for each of the six month periods ended April 30, 2024 and 2023 was $0.7 million. As of April 30, 2024, the weighted average remaining lease term (in years) was approximately 17 years and the weighted average discount rate was 7.0%. Lease payments made during the three months ended April 30, 2024 and 2023 were $0.5 million and $0.3 million, respectively, and for the six months ended April 30, 2024 and 2023 were $0.7 million and $0.6 million, respectively.

Undiscounted maturities of operating lease liabilities as of April 30, 2024 were as follows (in thousands):

	Operating Leases
Due Year 1	$	1,346
Due Year 2		1,258
Due Year 3		1,287
Due Year 4		1,307
Due Year 5		1,011
Thereafter		12,321
Total undiscounted lease payments		18,530
Less imputed interest		(8,921)
Total discounted lease payments	$	9,609