èßäÊÓƵ

Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.2
Leases
3 Months Ended
Jul. 31, 2019
Lessee Disclosure [Abstract] Ìý
Leases

Note 9. Leases


Operating lease assets are right-of-use assets, which represent the right to use an underlying asset for the lease term. Operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating leases are included in the Operating Lease Assets, net, and Operating Lease Liabilities, Current and Long-term on the unaudited Consolidated Balance Sheet at July 31, 2019. ÌýThese assets and lease liabilities are recognized based on the present value of remaining lease payments over the lease term. When the lease does not provide an implicit interest rate, the Company uses an incremental borrowing rate to determine the present value of the lease payments. The right-of-use asset includes all lease payments made and excludes lease incentives. Lease expense for operating leases is recognized on a straight-line basis over the lease term. There are no variable lease payments. Lease expense for the three month period ended July 31, 2019 was $612,597. These costs are primarily related to long-term operating leases, but also include amounts for short-term leases with terms greater than 30 days that are not material.


The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of July 31, 2019.


Ìý

Ìý

Lease Payments

Ìý

Maturity of Lease Liabilities

Ìý

Ìý

Ìý

Ìý

2020 (remaining)

Ìý

$

1,693,602

Ìý

2021

Ìý

Ìý

2,293,382

Ìý

2022

Ìý

Ìý

2,225,348

Ìý

2023

Ìý

Ìý

1,663,434

Ìý

2024

Ìý

Ìý

1,474,175

Ìý

2025

Ìý

Ìý

1,134,718

Ìý

2026 and beyond

Ìý

Ìý

779,287

Ìý

ÌýÌýÌýÌýTotal future minimum lease payments

Ìý

Ìý

11,263,946

Ìý

Less imputed interest

Ìý

Ìý

(3,067,840

)

ÌýÌýÌýÌýPresent value of operating lease liabilities

Ìý

$

8,196,106

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Balance Sheet Classification

Ìý

Ìý

Ìý

Ìý

Operating lease liabilities, current

Ìý

$

1,100,411

Ìý

Operating lease liabilities, long-term

Ìý

Ìý

7,095,695

Ìý

ÌýÌýÌýÌýTotal operating lease liabilities

Ìý

$

8,196,106

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Other Information

Ìý

Ìý

Ìý

Ìý

Weighted average remaining lease term (in years)

Ìý

Ìý

5.3

Ìý

Weighted average discount rate

Ìý

Ìý

12.0

%


Cash Flows


An initial ROU asset of $8.0 million was recognized as a non-cash asset addition with the adoption of the standard. There were no additional ROU assets recognized as non-cash asset additions during the quarter ended July 31, 2019. Cash paid for amounts included in the present value of operating lease liabilities at adoption and for the quarter ended July 31, 2019 was $1.7 million and $0.5 million, respectively, and is included in operating cash flows.