Leases
 12 Months Ended
Apr. 30, 2023
Leases  
Leases

Note 4 – Leases

 

We currently lease certain office, manufacturing, laboratory and warehouse space located in Orange County, California under operating lease agreements. Our leased facilities have original lease terms ranging from 7 to 12 years, contain multi-year renewal options, and scheduled rent increases of 3% on either an annual or biennial basis. Multi-year renewal options were included in determining the right-of-use asset and lease liability for three of our leases as we considered it reasonably certain that we would exercise such renewal options. In addition, certain of our leases provide for periods of free rent, lessor improvements and tenant improvement allowances, of which certain of these improvements have been classified as leasehold improvements and/or are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease.

 

Certain of our operating facility leases require us to pay property taxes, insurance and common area maintenance. While these payments are not included as part of our lease liabilities, they are recognized as variable lease cost in the period they are incurred.

 

We also lease certain manufacturing equipment under a 5-year finance lease that commenced in the second quarter of fiscal year 2022.

 

The components of our lease costs for the fiscal years ended April 30, 2023, 2022 and 2021, were as follows (in thousands): 

               
   Fiscal Year Ended April 30, 
   2023   2022   2021 
Operating lease cost  $4,386   $3,872   $3,151 
Variable lease cost   1,408    944    676 
Short-term lease cost   576    515    388 
Finance lease costs:               
Amortization of right-of-use assets   216    43    82 
Interest on lease liabilities   125    47    4 
Total lease costs  $6,711   $5,421   $4,301 

 

Supplemental consolidated balance sheet and other information related to our leases as of April 30, 2023 and 2022 were as follows (in thousands, except weighted average data):

             
       April 30, 
Leases  Classification  2023   2022 
Assets           
Operating  Operating lease right-of-use assets  $42,772   $36,806 
Finance  Property and equipment, net   2,529    2,728 
Total leased assets     $45,301   $39,534 
              
Liabilities             
Current:             
Operating  Current portion of operating lease liabilities  $1,358   $2,969 
Finance  Other current liabilities   531    505 
Non-current:             
Operating  Operating lease liabilities, less current portion   45,690    37,886 
Finance  Finance lease liabilities, less current portion   1,562    2,093 
Total lease liabilities     $49,141   $43,453 

 

          
Weighted average remaining lease term (years):        
Operating leases   16.6    12.4 
Finance lease   3.7    4.7 
Weighted average discount rate          
Operating leases   6.0%    3.3% 
Finance lease   5.3%    5.3% 

 

Supplemental cash flow information related to our leases were as follows (in thousands): 

               
   Fiscal Year Ended April 30, 
   2023   2022   2021 
Cash paid for amounts included in the measurement of lease liabilities:            
Operating cash flows from operating leases  $4,069   $2,376   $2,972 
Operating cash flows from finance leases   125    47    5 
Financing cash flows from finance leases   505    162    93 
                
Non-cash transactions:               
Right-of-use assets obtained upon operating lease modifications and reassessments, net  $9,267   $4,554   $– 
Right-of-use assets obtained in exchange for operating lease obligations  $–   $16,093   $– 
Decapitalization of right-of-use assets upon impairment  $89   $–   $– 
Property and equipment obtained in exchange for finance lease obligation  $–   $2,760   $– 

 

As of April 30, 2023, the maturities of our lease liabilities, which includes those derived from lease renewal options that we considered it reasonably certain that we would exercise, were as follows (in thousands): 

               
Fiscal Year Ending April 30,  Operating Leases   Finance Lease   Total 
2024  $4,140   $629   $4,769 
2025   4,060    629    4,689 
2026   4,167    629    4,796 
2027   4,199    419    4,618 
2028   4,036    –    4,036 
Thereafter   56,418    –    56,418 
Total lease payments  $77,020   $2,306   $79,326 
Less: imputed interest   (29,972)   (213)   (30,185)
Total lease liabilities  $47,048   $2,093   $49,141