The Company has an operating lease agreement for approximately 34,000 square feet of office, manufacturing and warehouse space in Plano, Texas (near Dallas). The lease term expires on November 30, 2029.

The Company has an operating lease agreement for approximately 36,000 square feet of warehouse space in Roanoke, Virginia. The lease term expires on April 30, 2026.

The Company also leases certain office equipment under an operating lease with an initial 60-month term. The lease term expires December 9, 2029.

The Company leases printers that are used in the Roanoke, Virginia manufacturing facility. The lease term expires on August 22, 2026. The right-of-use asset is being amortized on a straight-line basis over seven years. When the lease term ends, if the Company elects to purchase and retain the printers for a nominal fee, title will transfer to the Company and the remaining net book value of the right-of-use asset will be classified as property and equipment.

The Company leases test equipment that is used in the Asheville, North Carolina manufacturing facility. The lease term expires on June 26, 2030. The right-of-use asset is being amortized on a straight-line basis over five years. When the lease term ends, if the Company elects to retain the test equipment, title will transfer to the Company and the remaining net book value of the right-of-use asset will be classified as property and equipment.

The Company’s lease contracts may include options to extend or terminate the leases. The Company exercises judgment to determine the term of those leases when such options are present and include such options in the calculation of the lease term when it is reasonably certain that it will exercise those options.

The Company includes contract lease components in its determination of lease payments, while non-lease components of the contracts, such as taxes, insurance, and common area maintenance, are expensed as incurred. At commencement, right-of-use assets and lease liabilities are measured at the present value of future lease payments over the lease term. The Company uses either the rate implicit in the lease, where available, or its incremental borrowing rate based on information available at the time of lease commencement to measure the present value of future payments.

Operating lease expense is recognized on a straight-line basis over the lease term. Short-term leases with an initial term of 12 months or less are expensed as incurred. The Company’s short-term leases have month-to-month terms.

Operating lease right-of-use assets of $1,574,225 and $1,686,290 were included in other assets at January 31, 2026 and October 31, 2025, respectively. Operating lease liabilities of $374,226 and $1,267,771 were included in accounts payable and accrued expenses, and other noncurrent liabilities, respectively, at January 31, 2026. Operating lease liabilities of $392,898 and $1,358,584 were included in accounts payable and accrued expenses, and other noncurrent liabilities, respectively, at October 31, 2025. Operating lease expense recognized during the three months ended January 31, 2026 and 2025 totaled $153,107 and $155,393, respectively.

The weighted average remaining lease term for the operating leases was 45.2 months and the weighted average discount rate was 9.5% as of January 31, 2026.

For the three months ended January 31, 2026 and 2025, cash paid for operating lease liabilities totaled $150,027 and $137,517, respectively. For the three months ended January 31, 2026, there were no right-of-use assets obtained in exchange for new operating lease liabilities. For the three months ended January 31, 2025, right-of-use assets obtained in exchange for new operating lease liabilities totaled $266,141 and there was a reduction in right-of-use assets for terminated lease liabilities totaling $21,344.

For the three months ended January 31, 2026 and 2025, there were no right-of-use assets obtained in exchange for new finance lease liabilities.

Finance lease right-of-use assets of $241,203 and $257,986 were included in other assets at January 31, 2026 and October 31, 2025, respectively. Finance lease liabilities of $77,549 and $136,338 were included in accounts payable and accrued expenses, and other noncurrent liabilities, respectively, at January 31, 2026. Finance lease liabilities of $87,014 and $144,957 were included in accounts payable and accrued expenses, and other noncurrent liabilities, respectively, at October 31, 2025. Interest expense related to the finance leases totaled $4,036 and $1,072 for the three months ended January 31, 2026 and 2025, respectively. For the three months ended January 31, 2026 and 2025, amortization expense related to the finance leases totaled $16,784 and $7,374, respectively.

The weighted average remaining lease term for the finance leases was 43.5 months and the weighted average discount rate was 7.3% as of January 31, 2026.

For the three months ended January 31, 2026, cash paid for the finance lease liabilities totaled $4,036 for interest and $18,085 for principal. For the three months ended January 31, 2025, cash paid for the finance lease liabilities totaled $1,072 for interest and $9,645 for principal.

The Company’s future payments due under leases reconciled to the lease liabilities are as follows: