Leases (Tables)

3 Months Ended

Oct. 31, 2023

Leases [Abstract]

Components of lease expense and additional information

The components of lease expense are as follows:

	Three months ended October 31,
	2023		2022
Finance lease expense:
Amortization of ROU assets	$	—	3,000
Operating lease expense	2,258,000		2,837,000
Short-term lease expense	108,000		101,000
Variable lease expense	1,029,000		1,087,000
Sublease income	(17,000)		(17,000)
Total lease expense	$	3,378,000	4,011,000

Additional information related to leases is as follows:

	Three months ended October 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases - Operating cash outflows	$	2,319,000	$	2,906,000
Finance leases - Financing cash outflows	—		3,000
ROU assets obtained in the exchange for lease liabilities (non-cash):
Operating leases	$	20,000	$	2,573,000

Future cash flows relating to operating lease liabilities

The following table is a reconciliation of future cash flows relating to operating lease liabilities presented on our Condensed Consolidated Balance Sheet as of October 31, 2023:

Remainder of fiscal 2024	$	6,571,000
Fiscal 2025	8,089,000
Fiscal 2026	6,652,000
Fiscal 2027	4,546,000
Fiscal 2028	3,812,000
Thereafter	18,793,000
Total future undiscounted cash flows	48,463,000
Less: Present value discount	5,668,000
Lease liabilities	$	42,795,000
Weighted-average remaining lease terms (in years)	8.08
Weighted-average discount rate	3.49%

We lease our Melville, New York production facility from a partnership controlled by our former CEO. Lease payments made during the three months ended October 31, 2023 and 2022 were $180,000 and $171,000, respectively. The current lease provides for our use of the premises as they exist through December 2031. The annual rent of the facility for calendar year 2024 is $733,000 and is subject to customary adjustments. We have a right of first refusal in the event of a sale of the facility.