Note 11. Leases

The Company enters into operating 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. The Company currently has no finance leases.

Operating lease expense for the three month periods ended July 31, 2025 and 2024 was $0.3 million and $0.4 million, respectively, and was $1.0 million and $1.1 million for the nine month periods ended July 31, 2025 and 2024, respectively. As of July 31, 2025, the weighted average remaining lease term (in years) was approximately 18 years and the weighted average discount rate was 7.8%. Lease payments made during the three months ended July 31, 2025 and 2024 were $0.3 million and $0.2 million, respectively. Lease payments made during the nine month periods ended July 31, 2025 and 2024 were $1.0 million and $0.9 million, respectively.

Undiscounted maturities of operating lease liabilities as of July 31, 2025 were as follows (in thousands):

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