Leases

12 Months Ended

Oct. 31, 2023

Leases

Leases

Note 10. Leases

The Company enters into operating and finance lease agreements for the use of real estate, vehicles, information technology equipment, and certain other equipment. We determine if an arrangement contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The impacts of accounting for operating leases are included in Operating lease right-of-use assets, Operating lease liabilities, and Long-term operating lease liabilities in the Company’s Consolidated Balance Sheets. Finance leases are not considered significant to the Company’s Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Loss.

Operating lease expense for each of the years ended October 31, 2023, 2022 and 2021 was $1.5 million. As of October 31, 2023, the weighted average remaining lease term (in years) was approximately 17 years and the weighted average discount rate was 7.0%. Lease payments made during the years ended October 31, 2023, 2022 and 2021 totaled $1.2 million, $1.4 million, and $1.2 million, respectively.

As of October 31, 2023, undiscounted maturities of operating lease and finance lease liabilities are as follows (in thousands):

	Operating Leases		Finance Leases
Due Year 1	$	1,052	$	16
Due Year 2		1,276		—
Due Year 3		1,262		—
Due Year 4		1,292		—
Due Year 5		1,267		—
Thereafter		12,718		—
Total undiscounted lease payments		18,867		16
Less imputed interest		(9,276)		(4)
Total discounted lease payments	$	9,591	$	12