Note 19 - Segment Reporting

12 Months Ended

Jan. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

19. Segment Reporting

Historically, we reported two segments, Marine Technology Products and Equipment Leasing. Effective January 31, 2023, we split our Marine Technology Products Segment into two segments, Seamap Marine Products and Klein Marine Products, to more accurately reflect our reportable segments. During the second quarter of fiscal 2021, our Board decided to exit the Leasing Business and instructed management to develop and implement a plan to dispose of those operations. Since then Equipment Leasing operations have been reported as discontinued operations. See Note 2 - “Assets Held for Sale and Discontinued Operations” to our consolidated financial statements for more details.

Prior to the year ended January 31, 2023, Seamap Marine Products and Klein Marine Products operating segments had been reported on an aggregated basis under our Marine Technology Products segment. We subsequently determined that we misapplied the provisions of ASC 280, Segment Reporting, regarding aggregation of operating segments. For the year ended January 31, 2023, we correctly reported segment activity pursuant to the provisions of ASC 280, and we have restated segment information for the year ended January 31, 2022, to correct our error and conform to our current presentation.

Our Seamap Marine Products business is engaged in the design, manufacture and sale of specialized marine seismic equipment. Manufacturing, support and sales facilities are maintained in the United Kingdom, Singapore, Malaysia and the state of Texas.

Our Klein Marine Products business is engaged in the design, manufacture and sale of high performance side scan sonar and water-side security systems. Manufacturing, support and sales facilities are maintained in the state of New Hampshire.

The Company’s two reportable business segments are managed separately based on geographical locations and differences in their operations. The Company evaluates performance of its segments based on the contribution to operating income (loss) of the respective segments. 

Financial information by business segment is set forth below net of any allocations (in thousands):

	As of January 31, 2023								As of January 31, 2022
	Seamap Marine Products		Klein Marine Products		Corporate		Consolidated		Seamap Marine Products		Klein Marine Products		Corporate		Consolidated
Accounts Receivable, Net	$	3,245	$	748	$	—	$	3,993	$	7,246	$	880	$	—	$	8,126
Inventories, Net		11,026		4,292		—		15,318		9,508		4,498		—		14,006
Long-lived Assets, Net		5,649		4,480		496		10,625		7,741		3,879		505		12,125
Segment assets		19,920		9,520		496	$	29,936		24,495		9,257		505		34,257
Other(1)								2,922								7,763
Total Consolidated Assets							$	32,858							$	42,020

(1) Other includes cash and prepaid expenses and other assets.

	Year Ended January 31,
	2023														2022
	Seamap Marine Products		Klein Marine Products			Corporate expenses			Eliminations			Consolidated			Seamap Marine Products			Klein Marine Products			Corporate expenses			Eliminations			Consolidated
Revenues	$	25,012	$	10,555		$	—		$	(476	)	$	35,091		$	17,294		$	5,825		$	—		$	(12	)	$	23,107
Cost of sales		15,537		7,055			—			(476	)		22,116			11,735			5,362			—			(12	)		17,085
Capital expenditures		103		528			—			—			631			233			757			—			—			990
Depreciation and amortization expense		1,253		543			91			—			1,887			1,591			541			77			—			2,209
Operating income (loss)		2,074		(2,309	)		(7,379	)		—			(7,614	)		(4,462	)		(5,263	)		(4,819	)		—			(14,544	)

Sales from the Klein Marine Products to the Seamap Marine Products segment are eliminated in consolidated revenues. Consolidated income before taxes reflects the elimination of profit from intercompany sales and the cost to manufacture the equipment.

The following table presents a reconciliation of operating income (loss) to loss from continuing operations before income taxes (in thousands):

	Years Ended January 31,
	2023			2022
Seamap Marine Products	$	2,074		$	(4,462	)
Klein Marine Products		(2,309	)		(5,263	)
Corporate Expenses		(7,379	)		(4,819	)
Operating loss		(7,614	)		(14,544	)
Employment Retention Credit		1,004			—
Paycheck Protection Plan		—			850
Other		(122	)		76
Loss from continuing operations before income taxes	$	(6,732	)	$	(13,618	)