7. Right-of-Use Assets and Lease Liabilities

The Company’s leases primarily represent offices, warehouses, vehicles, and manufacturing and research and development facilities which expire at various times through 2029 and are generally operating leases. Contractual arrangements are evaluated at inception to determine if the agreement contains a lease. Certain lease agreements contain renewal options, rent abatement, and escalation clauses that are factored into our determination of lease payments when appropriate. ROU assets and lease liabilities are recorded based on the present value of future lease payments which will factor in certain qualifying initial direct costs incurred as well as any lease incentives that may have been received. Lease expenses for operating lease payments are recognized on a straight-line basis over the lease term. Lease terms may factor in options to extend or terminate the lease.

The Company elected the practical expedient for short-term leases which allows leases with terms of twelve months or less to be recorded on a straight-line basis over the lease term without being recognized on the consolidated balance sheet.

Effective May 1, 2019, the Company adopted ASU 2016-02. The table below presents ROU assets and lease liabilities recorded on the consolidated balance sheet related to ASU 2016-02 as follows:

	Classification	April 30, 2020
		(in thousands)
Assets
Operating lease ROU assets	ROU assets - leases	$	10,864

Liabilities
Operating lease liabilities (short-term)	Lease liability, current		1,869
Operating lease liabilities (long-term)	Lease liability, non-current		9,444
Total lease liabilities		$	11,313

Total operating lease expense was approximately $1.6 million and $1.2 million for the fiscal years ended April 30, 2020 and 2019, the majority of which is included in cost of revenues and the remaining amount in selling and administrative expenses on the consolidated statements of operations. There were no new leases entered into for the year ended April 30, 2020.

Under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year would have been as follows as of April 30, 2019 (in thousands):

Fiscal Year Ending April 30,	Operating Leases
(in thousands)
2020	$	1,316
2021		1,521
2022		1,436
2023		1,469
2024		1,502
Thereafter		6,349
Total future minimum lease payments	$	13,593

The table below reconciles the undiscounted cash flows for each of the first five fiscal years and total of the remaining fiscal years to the operating lease liabilities recorded on the consolidated balance sheet as of April 30, 2020:

Fiscal Year Ending April 30,
(in thousands)

2021		1,919
2022		1,783
2023		1,801
2024		1,834
2025		1,723
Thereafter		5,492
Total lease payments		14,552
Less imputed interest		(3,239	)
Present value of future lease payments		11,313
Less current obligations under leases		(1,869	)
Long-term lease obligations	$	9,444

As of April 30, 2020, the weighted-average remaining lease term for all operating leases was 8.3 years. The Company does not generally have access to the rate implicit in the leases and therefore utilized the Company’s borrowing rate as the discount rate. The weighted average discount rate for operating leases as of April 30, 2020 was 6.19%.

Supplemental cash flow information related to leases include operating cash flows for operating leases of $1.7 million and right-of-use assets obtained in exchange for lease obligations of $12.1 million, as of adoption, for the fiscal year ended April 30, 2020. There have been no new leases since adoption.