Frequency Electronics FEIM Lessee Operating Lease Lease Not Yet Commenced Expected Lease Payments

Total operating lease expense was approximately $2.5 million, of which approximately $0.5 million was attributable to variable lease expenses, for fiscal year ended April 30, 2026, the majority of which is included in cost of revenues and the remaining amount in selling and administrative expenses on the consolidated statements of operations. Total operating lease expense was approximately $1.9 million, of which approximately $0.4 million was attributable to variable lease expenses, for fiscal year ended April 30, 2025, the majority of which is included in cost of revenues and the remaining amount in selling and administrative expenses on the consolidated statements of operations. In addition, the Company made cash payments of $2.3 million and $1.9 million for operating leases during the fiscal years ended April 30, 2026 and 2025, respectively, which are included in cash flows from operating activities in our consolidated statements of cash flows. During the year ended April 30, 2026, the Company recorded incremental ROU assets and lease liabilities of approximately $0.4 million arising from a new lease for FEI-NY, which commenced during the quarter ended October 31, 2025. During the year ended April 30, 2025, the Company recorded incremental ROU assets and lease liabilities of approximately $4.1 million arising from the third amendment to the FEI-Zyfer lease, which commenced in fiscal year 2025. There were no ROU assets or lease liabilities that were recorded for any leases that had not commenced as of April 30, 2026.