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Leases
 6 Months Ended
Jul. 31, 2024
Leases [Abstract]  
Leases Leases
The Company accounts for leases in accordance with ASC 842 “Leases” (“ASC 842”). We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration.
In April 2024, the Company's lease of additional warehouse and office space in Farmingdale, New York became effective. The lease agreement has a five year term with monthly rent of approximately $16.7 thousand for the first year, increasing to approximately $17.2 thousand for the second year, increasing to approximately $17.7 thousand for the third year, increasing to approximately $18.2 thousand for the fourth year and increasing to approximately $18.8 thousand for the fifth year. As a result of this lease the Company recognized a (right-of-use) (ROU) asset and a ROU liability of approximately $873 thousand.
During the six months ended July 31, 2024, the Company amended its lease for 25 Branca Road, East Rutherford, NJ. The amended lease has a termination date of August 31, 2024, which was subsequently extended, see Note 12. As the lease is now short term in nature the Company wrote off approximately $897 thousand of the ROU asset and ROU liability in the three months ended April 30, 2024.
We have operating leases for offices and other facilities used for our operations. We also have finance leases consisting primarily of machinery and equipment. Our leases have remaining lease terms of approximately 0.33 years to 7.6 years.
Supplemental cash flow and other information related to leases was as follows (in thousands):
 July 31, 2024July 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$267 $135 
Financing cash flows from finance leases196 93 
The following table shows the weighted average lease term and weighted average discount rate for our ROU lease assets:
 July 31, 2024January 31, 2024
Weighted average remaining lease term (in years)
Operating leases6.156.57
Finance leases4.434.49
 
Weighted average discount rate:
Operating leases5.47 %4.85 %
Finance Leases7.19 %6.74 %
Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):
For the fiscal years endedFinance LeasesOperating LeasesTotal Maturities of Lease Liabilities
2025 remaining$233 $280 $513 
2026384 566 950 
2027336 467 803 
2028328 500 828 
2029232 507 739 
Thereafter150 839 989 
Total undiscounted future lease payments1,663 3,159 4,822 
Less: imputed interest(261)(453)(714)
Total present value of future lease liabilities$1,402 $2,706 $4,108 
Leases Leases
The Company accounts for leases in accordance with ASC 842 “Leases” (“ASC 842”). We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration.
In April 2024, the Company's lease of additional warehouse and office space in Farmingdale, New York became effective. The lease agreement has a five year term with monthly rent of approximately $16.7 thousand for the first year, increasing to approximately $17.2 thousand for the second year, increasing to approximately $17.7 thousand for the third year, increasing to approximately $18.2 thousand for the fourth year and increasing to approximately $18.8 thousand for the fifth year. As a result of this lease the Company recognized a (right-of-use) (ROU) asset and a ROU liability of approximately $873 thousand.
During the six months ended July 31, 2024, the Company amended its lease for 25 Branca Road, East Rutherford, NJ. The amended lease has a termination date of August 31, 2024, which was subsequently extended, see Note 12. As the lease is now short term in nature the Company wrote off approximately $897 thousand of the ROU asset and ROU liability in the three months ended April 30, 2024.
We have operating leases for offices and other facilities used for our operations. We also have finance leases consisting primarily of machinery and equipment. Our leases have remaining lease terms of approximately 0.33 years to 7.6 years.
Supplemental cash flow and other information related to leases was as follows (in thousands):
 July 31, 2024July 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$267 $135 
Financing cash flows from finance leases196 93 
The following table shows the weighted average lease term and weighted average discount rate for our ROU lease assets:
 July 31, 2024January 31, 2024
Weighted average remaining lease term (in years)
Operating leases6.156.57
Finance leases4.434.49
 
Weighted average discount rate:
Operating leases5.47 %4.85 %
Finance Leases7.19 %6.74 %
Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):
For the fiscal years endedFinance LeasesOperating LeasesTotal Maturities of Lease Liabilities
2025 remaining$233 $280 $513 
2026384 566 950 
2027336 467 803 
2028328 500 828 
2029232 507 739 
Thereafter150 839 989 
Total undiscounted future lease payments1,663 3,159 4,822 
Less: imputed interest(261)(453)(714)
Total present value of future lease liabilities$1,402 $2,706 $4,108