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 April 30, 2026 and 2025 was $0.4 million and $0.3 million, respectively, and for the six month periods ended April 30, 2026 and 2025 was $0.8 million and $0.7 million, respectively. As of April 30, 2026, the weighted average remaining lease term (in years) was approximately 17 years and the weighted average discount rate was 7.8%. Lease payments made during each of the three month periods ended April 30, 2026 and 2025 were $0.4 million. Lease payments made during each of the six month periods ended April 30, 2026 and 2025 were $0.7 million.

Undiscounted maturities of operating lease liabilities as of April 30, 2026 were as follows (in thousands):

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