Leases

9 Months Ended

Apr. 30, 2024

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 six years. 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 April 30,				Nine Months Ended April 30,
	2024		2023		2024		2023
	(in thousands)
Operating lease cost	$	746	$	817	$	2,238	$	2,384
Short-term lease cost		311		256		770		784
Total lease cost	$	1,057	$	1,073	$	3,008	$	3,168
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	738	$	842	$	2,253	$	2,431

	April 30, 2024			July 31, 2023
Weighted-average remaining lease term-operating leases	2.5 years			2.3 years
Weighted-average discount rate-operating leases		4.4	%		3.7	%

In the nine months ended April 30, 2024 and 2023, the Company obtained right-of-use assets of $0.9 million and $1.7 million, respectively, in exchange for new operating lease liabilities.

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

	April 30, 2024		July 31, 2023
	(in thousands)
Operating lease liabilities included in “Other current liabilities”	$	2,804	$	2,861
Operating lease liabilities included in noncurrent liabilities		1,753		2,881
Total	$	4,557	$	5,742

Future minimum maturities of operating lease liabilities were as follows:

(in thousands)
Twelve-month period ending April 30:
2025	$	2,953
2026		796
2027		559
2028		272
2029		180
Thereafter		105
Total lease payments		4,865
Less imputed interest		(308	)
Total operating lease liabilities	$	4,557