Leases

3 Months Ended

Jul. 31, 2024

The Company accounts for its leases under FASB ASC Topic 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if applicable, or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement

date in determining the present value of lease payments. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term.

Operating Leases

The Company currently leases certain office equipment and its office and laboratory facilities under non-cancelable operating leases. Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date. Rent expense totaled $454,000 for the three months ended July 31, 2024 and 2023. The Company considers its facilities adequate for its current operational needs.

The Company leases the following facilities:

•One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as the Company’s corporate headquarters. The lease expires in November 2026. The Company recognized $19,000 of rent expense relative to this lease for both the three months ended July 31, 2024 and 2023.

•1330 Piccard Drive Suite 025, Rockville, MD 20850, which consists of laboratory and office space where the Company conducts operations related to its primary service offerings. The Company executed the original lease in January 2017. The lease was amended to expand the premises and extend the expiration date in March 2020 and again in December 2020. The operating commencement date was August 11, 2017. This lease expires in February 2029. The Company recognized $422,000 and $423,000 of rent expense relative to this lease for both the three months ended July 31, 2024 and 2023, respectively.

•VIA LEONE XIII, 14, Milan, Italy, which consists of laboratory and office space where the Company conducts operations related to its flow cytometry service offerings. The Company executed separate leases for its laboratory space and office space during fiscal 2022. During fiscal 2023, the Company executed a new lease to consolidate its office and laboratory space at a new nearby location in Italy. The lease expires October 31, 2028 and it replaces the previous two leases, which were terminated during fiscal year 2023. The Company recognized $13,000 of rent expense relative to its current lease for both the three months ended July 31, 2024 and 2023.

ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):


	July 31, 2024		April 30, 2024
Operating lease right-of-use assets, net	$	5,963	$	6,252
Current portion of operating lease liabilities	1,369		1,337
Non-current portion of operating lease liabilities	5,738		6,093

As of July 31, 2024, the weighted average remaining operating lease term and the weighted average discount rate were 4.49 years and 5.88%, respectively. As of July 31, 2023, the weighted average remaining operating lease term and the weighted average discount rate were 5.47 years and 5.87%, respectively.

Future minimum lease payments due each fiscal year as follows (in thousands):


2025 (remaining)	$	2,180
2026	2,950
2027	2,916
2028	2,867
2029	2,392
Thereafter	—
Total undiscounted liabilities	13,305
Less: Imputed interest	(6,198)
Present value of minimum lease payments	$	7,107

The composition of total lease cost for three months ended July 31, 2024 and 2023 were as follows (in thousands):


	Three Months Ended July 31,
	2024		2023
Operating lease costs	$	429	$	416

Financing lease costs:
Amortization of leased assets	37		36
Interest on lease liabilities	3		4

Total lease costs	$	469	$	456

Refer to Note 5, Property and Equipment, for information on financing leases.