The Company has leases for lab and office space and automobiles. Each lease is reflected in the consolidated statement of financial position as a right-of-use asset and a lease liability. The Company classifies right-of-use assets in a consistent manner to its property and equipment. The following is a schedule of the Company’s future minimum lease payments related to the equipment and automobiles under finance lease and the office lease obligation:

Total cash outflow for leases during the three months ended July 31, 2026, was $0.2 million (2025 - $0.3 million).


(in thousands)	$
2027		519
2028		692
2029		674
2030		624
2031		489
More than 5 years		1,295
Total minimum lease payments		4,293
Less: imputed interest		(809	)
Total present value of minimum lease payments		3,484
Less: Current portion		(483	)
Non-current portion		3,001

The nature of the Company’s leases by type of right-of-use asset as at July 31, 2026, is as follows:

Right-of-use assets


Right-of-use asset type	No. of right-of-use assets leased		Range of remaining term	Average remaining lease term	No. of leases with extension options		No. of leases with options to purchase		No. of leases with variable payments linked to an index		No. of leases with termination options
Lab and office facilities		1	7.4 years	7.4 years		—		—		1		1
Lab equipment		3	3.5 - 3.8 years	3.7 years		—		3		3		3
Automobiles		9	1.9 - 4.2 years	3.0 years		—		—		9		9

The Company has elected not to recognize a lease liability for leases with an expected term of 12 months or less. Additionally, certain variable lease payments are not permitted to be recognized as lease liabilities and are recognized in profit and loss as incurred. Expense relating to payments not included in the measurement of the lease liability during the three months ended July 31, 2026, and 2025 are as follows:


(in thousands)	2026 $		2025 $
Leases of low value assets		6		6
Variable lease payments		125		125
		131		131