5. Balance Sheet


	July 31, 2016			January 31, 2016
	(in thousands)
Accounts receivable	$	21,154		$	27,691
Contracts receivable		2,753			2,877

		23,907			30,568
Less long-term portion		(4,967	)		(4,972	)

Current accounts and contracts receivable		18,940			25,596
Less allowance for doubtful accounts		(5,828	)		(5,821	)

Current portion of accounts and contracts receivable, net of allowance for doubtful accounts	$	13,112		$	19,775

Contracts receivable consisted of $2.8 million and $2.9 million due from three customers as of July 31, 2016 and January 31, 2016, respectively. The balance of contracts receivable at July 31, 2016 and January 31, 2016 consisted of contracts bearing interest at an average rate of approximately 2.2% and 2.4%, respectively, and with remaining repayment terms from one to 40 months and one to 40 months, respectively. These contracts are collateralized by the equipment sold. The Company has entered into structured payment arrangements with four customers, which extend the payment of their accounts and contracts receivable balances resulting in long-term accounts receivable with two customers totaling $3.7 million and long-term contracts receivable with two customers totaling $1.3 million. Payments terms for long-term receivables are structured to be completed by the end of fiscal 2018.


	July 31, 2016			January 31, 2016
	(in thousands)
Inventories:
Raw materials		7,620		$	7,314
Finished goods		5,004			4,967
Work in progress		1,405			1,563

		14,029			13,844
Less allowance for obsolescence		(938	)		(900	)

Total inventories, net	$	13,091		$	12,944

In December of 2015, the Company acquired $3.3 million of inventory in connection with the purchase of Klein. See Note 4 to our consolidated financial statements.


	July 31, 2016			January 31, 2016
	(in thousands)
Seismic equipment lease pool and property and equipment:
Seismic equipment lease pool	$	232,693		$	230,923
Land and buildings		3,379			3,375
Furniture and fixtures		9,625			9,405
Autos and trucks		683			694

		246,380			244,397
Accumulated depreciation and amortization		(185,415	)		(170,881	)

Total seismic equipment lease pool and property and equipment, net	$	60,965		$	73,516

As of January 31, 2016, the Company completed an annual review of long-lived assets noting that the undiscounted future cash flows exceeded their carrying value and no impairment has been recorded. There have been no negative significant changes to the environment since January 31, 2016 that would indicate additional impairment analysis is necessary as of July 31, 2016.