Note 12— Operating Leases

The Company has operating leases primarily for office space. Operating lease right-of-use (“ROU”) assets recorded and included in other assets were $233,000 and $214,000 at April 30, 2025 and July 31, 2024, respectively.

On August 7, 2024, the Company renewed its lease for the office space in Tel Aviv, Israel for a two-year term. Future minimum lease payments related to this lease renewal are as follows (in thousands):

The Company reviews the impairment of ROU assets consistent with the approach applied for the Company’s other long-lived assets. The Company reviews the recoverability of long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations.

In connection with the restructuring we implemented in January 2025 (See Note 14 Restructuring, Impairments, and Related Charges for more details), we are evaluating the potential impairment of the right-of-use assets associated with our leased office space in Norway.

There were no other material changes in the Company’s operating and finance leases in the nine months ended April 30, 2025, as compared to the disclosure regarding such leases in the 2024 Form 10-K.