Leases

3 Months Ended

Oct. 31, 2023

Leases

Leases

Note 4—Leases

The Company’s leases primarily consist of operating leases for office space. These leases have remaining terms from less than one year to five years. net2phone also has operating leases for office equipment. Certain of these leases contain renewal options that may be exercised and/or options to terminate the lease. The Company has concluded that it is not reasonably certain that it would exercise any of these options.

net2phone is the lessee under equipment leases that are classified as finance leases. The assets and liabilities related to these finance leases are not material to the Company’s consolidated balance sheets.

Supplemental disclosures related to the Company’s operating leases were as follows:

	Three Months Ended October 31,
	2023		2022
	(in thousands)
Operating lease cost	$	758	$	767
Short-term lease cost		326		269
Total lease cost	$	1,084	$	1,036
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	791	$	764

	October 31, 2023			July 31, 2023
Weighted-average remaining lease term-operating leases		2.1 years			2.3 years
Weighted-average discount rate-operating leases		3.9	%		3.7	%

In the three months ended October 31, 2023 and 2022, the Company obtained right-of-use assets of $0.1 million and $0.4 million, respectively, in exchange for new operating lease liabilities.

The Company’s aggregate operating lease liability was as follows:

	October 31, 2023		July 31, 2023
	(in thousands)
Operating lease liabilities included in “Other current liabilities”	$	2,732	$	2,861
Operating lease liabilities included in noncurrent liabilities		2,346		2,881
Total	$	5,078	$	5,742

Future minimum maturities of operating lease liabilities were as follows:

(in thousands)
Twelve-month period ending October 31:
2024	$	2,883
2025		1,713
2026		478
2027		220
2028		12
Thereafter		—
Total lease payments		5,306
Less imputed interest		(228	)
Total operating lease liabilities	$	5,078