Note 7 - Leases

6 Months Ended

Jul. 31, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

7. Leases

The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Hungary, Singapore, Malaysia, and the United Kingdom. We negotiated the termination of our Colombia lease obligation during fiscal 2022 and our lease obligation in Canada was terminated as of March 31, 2022.

Lease expense for the three and six months ended July 31, 2022 was approximately $218,000 and $421,000, respectively, and during the three and six months ended July 31, 2021 was approximately $291,000 and $600,000, respectively, and were recorded as a component of operating loss. Included in these costs was short-term lease expense of approximately $9,000 and $18,000 for the three and six months ended July 31, 2022, respectively, and during the three and six months ended July 31, 2021 was approximately $10,000 and  $10,000, respectively.

Supplemental balance sheet information related to leases as of July 31, 2022 and January 31, 2022 were as follows:

Lease	July 31, 2022		January 31, 2022
Assets	(in thousands)
Operating lease assets	$	2,001	$	1,835
Liabilities
Operating lease liabilities	$	2,001	$	1,835
Classification of lease liabilities
Current liabilities	$	502	$	869
Non-current liabilities		1,499		966
Total Operating lease liabilities	$	2,001	$	1,835

Lease-term and discount rate details as of July 31, 2022 and January 31, 2022 were as follows:

Lease term and discount rate	July 31, 2022			January 31, 2022
Weighted average remaining lease term (years)
Operating leases		2.08			1.82
Weighted average discount rate:
Operating leases		13	%		13	%

The incremental borrowing rate was calculated using the Company's weighted average cost of capital.

Supplemental cash flow information related to leases was as follows:

Lease	Six Months Ended July 31, 2022			Six Months Ended July 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:	(in thousands)
Operating cash flows from operating leases	$	(421	)	$	(600	)
Changes in lease balances resulting from new and modified leases:
Operating leases	$	638		$	762

Maturities of lease liabilities at July 31, 2022 were as follows:

	July 31, 2022
	(in thousands)
2023	$	502
2024		794
2025		541
2026		274
2027		188
Thereafter		204
Total payments under lease agreements	$	2,503
Less: imputed interest		(502	)
Total lease liabilities	$	2,001