Note 8 - Leases

9 Months Ended

Oct. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8. Leases

The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Singapore, Malaysia, and the United Kingdom. Our lease obligation in Canada was terminated as of March 31, 2022, and our lease obligation in Hungary was terminated as of November 30, 2022.

Lease expense for the three and nine months ended October 31, 2023 was approximately $198,000 and $621,000, respectively, and during the three and nine months ended October 31, 2022 was approximately $218,000 and $639,000, respectively, and was recorded as a component of operating income (loss). Included in these costs was short-term lease expense of approximately$2,000 and $5,000 for the three and nine months ended October 31, 2023, respectively, and during the three and nine months ended October 31, 2022 was approximately$2,000 and $5,000 respectively. 

Supplemental balance sheet information related to leases as of October 31, 2023 and January 31, 2023 was as follows:

Lease	October 31, 2023		January 31, 2023
Assets	(in thousands)
Operating lease assets	$	1,517	$	1,749
Liabilities
Operating lease liabilities	$	1,517	$	1,749
Classification of lease liabilities
Current liabilities	$	833	$	903
Non-current liabilities		684		846
Total Operating lease liabilities	$	1,517	$	1,749

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

Lease term and discount rate	October 31, 2023			January 31, 2023
Weighted average remaining lease term (years)
Operating leases		1.69			1.98
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	Nine Months Ended October 31, 2023			Nine Months Ended October 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:	(in thousands)
Operating cash flows from operating leases	$	(621	)	$	(639	)
Changes in lease balances resulting from new and modified leases:
Operating leases	$	391		$	655

Maturities of lease liabilities at October 31, 2023 were as follows:

	October 31, 2023
	(in thousands)
2024	$	299
2025		700
2026		338
2027		232
2028		235
Thereafter		33
Total payments under lease agreements	$	1,837
Less: imputed interest		(320	)
Total lease liabilities	$	1,517