NOTE 25 – LEASES

 

The Company is the lessor of the Israeli property which is leased to tenants under net operating leases expiring in 2025 and 2027. Lease income included on the consolidated statements of operations was $309 thousand and $282 thousand for the years ended July 31, 2025 and 2024, respectively. During the years ended July 31, 2025 and 2024, no real estate property taxes were included in rental income.

 

The future contractual minimum lease payments to be received (excluding operating expense reimbursements) by the Company as of July 31, 2025, under a non-cancellable operating lease are as follows:

 

Years Ending July 31,  Total 
2026  $181 
2027   188 
2028   31 
Total Minimum Future Rental Income  $400 

Historical Timeline

Fiscal YearFiled
2025Oct 29, 2025Showing above
2024Nov 7, 2024
2023Oct 30, 2023
2022Oct 31, 2022
2021Oct 18, 2021
2020Oct 29, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.