Company: KEQU
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0000055529-25-000013
Chunk: 30

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 $604,000 in debt issuance costs, of which $769,000 was classified as current on the Consolidated Balance Sheet with $26,835,000 classified as long-term. As of April 30, 2024, the carrying value of the financing liability was $28,133,000, net of $648,000 in debt issuance costs, of which $713,000 was classified as current on the Consolidated Balance Sheet with $27,420,000 classified as long-term. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Interest expense associated with the financing arrangement was $313,000 and $321,000 for the three months ended January 31, 2025 and January 31, 2024, respectively. Interest expense associated with the financing arrangement was $944,000 and $968,000 for the nine months ended January 31, 2025 and January 31, 2024, respectively.The Company will continue to depreciate the building down to zero over the 20-year assumed economic life of the property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.Remaining future cash payments related to the financing liability as of January 31, 2025 are as follows:

($ in thousands)Remainder of fiscal 2025$495 20262,009 20272,049 20282,090 20292,132 Thereafter31,737 Total Minimum Liability Payments40,512 Imputed Interest(12,908)Total$27,604  

J. Leases

The Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and financing leases for vehicles and IT equipment in the U.S. At January 31, 2025 and April 30, 2024, right-of-use assets totaled $13,974,000 and $7,454,000, respectively. Operating cash paid to settle lease liabilities was $2,376,000 and $1,930,000 for the nine months ended January 31, 2025 and January 31, 2024, respectively. The Company's leases have remaining lease terms of up to 7 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate