Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Jan. 31, 2023



We lease approximately 2,000 square feet of office space at 3150 Almaden Expressway, San Jose, California (our principal executive offices) from an unrelated party pursuant to an operating lease that was to expire on September 30, 2021. Effective August 17, 2021, the lease was amended to extend the expiration date to September 30, 2024, with an option to extend the lease an additional two years. Our base rent is approximately $5,000 per month and the lease provides for annual increases of approximately 3% and an escalation clause for increases in certain operating costs. The amendment to the lease resulted in a right-of-use asset and lease liability of approximately $260,000 with a discount rate of 10%. Rent expense was approximately $17,000 and $17,000, respectively, for the three months ended January 31, 2023 and 2022.


For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments. The remaining 44-month lease term as of January 31, 2023 for the Company’s lease includes the noncancelable period of the lease and the additional two-year option period that the Company is reasonably certain to exercise. All right-of-use assets are reviewed for impairment when indications of impairment are present.


As of January 31, 2023, the annual minimum future lease payments of our operating lease liabilities were as follows (in thousands):


For years Ended October 31,   Operating
2023   $ 49  
2024           67  
2025     70  
2026     65  
Total future minimum lease payments, undiscounted     251  
Less: Imputed interest     42  
Present value of future minimum lease payments   $ 209