Note 10 - Leases

12 Months Ended

Jan. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

10. Leases

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

Lease expense for the twelve months ended  January 31, 2023 and 2022 was approximately $858,000 and $1.2 million, respectively, and was recorded as a component of operating loss. Included in these costs was short-term lease expense of approximately $6,000 and $36,000 for the twelve months ended January 31, 2023 and 2022, respectively.

Supplemental balance sheet information related to leases as of  January 31, 2023 and 2022 was as follows (in thousands):

	As of January 31,
Lease	2023		2022
Assets
Operating lease assets	$	1,749	$	1,835
Liabilities
Operating lease liabilities	$	1,749	$	1,835
Classification of lease liabilities
Current liabilities	$	903	$	869
Non-current liabilities		846		966
Total Operating lease liabilities	$	1,749	$	1,835

Lease-term and discount rate details as of  January 31, 2023 and 2022 were as follows:

	As of January 31,
Lease term and discount rate	2023			2022
Weighted average remaining lease term (years)
Operating leases		1.98			1.82
Weighted average discount rate:
Operating leases		13	%		13	%

Supplemental cash flow information related to leases on  January 31, 2023 and 2022 was as follows (in thousands):

	As of January 31,
Lease	2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(858	)	$	(1,196	)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	819		$	772

Maturities of lease liabilities on  January 31, 2023 and 2022 were as follows (in thousands):

	As of January 31,
	2023			2022
2023	$	903		$	869
2024		574			547
2025		274			285
2026		188			211
2027		188			188
Thereafter		16			204
Total payments under lease agreements	$	2,143		$	2,304
Less: imputed interest		(394	)		(469	)
Total lease liabilities	$	1,749		$	1,835

Prior to July 31, 2020, the Company leased seismic equipment to customers under operating leases with non-cancelable terms of one year or less. These leases were generally renewable on a month-to-month basis. All taxes (other than income taxes) and assessments were the contractual responsibility of the lessee. To the extent that foreign taxes were not paid by the lessee, the relevant foreign taxing authorities might seek to collect such taxes from the Company. Under the terms of its lease agreements, any amounts paid by the Company to such foreign taxing authorities may be billed and collected from the lessee. The Company is not aware of any foreign tax obligations as of  January 31, 2023 and 2022 that are not reflected in the accompanying consolidated financial statements.