Leases

3 Months Ended

Apr. 30, 2025

Lessee Finance And Operating Leases Abstract

Lessee, Finance and Operating Leases [Text Block]

Note 4. Leases

Operating Leases

At April 30, 2025, the Company had lease agreements, as lessee, for railcars. All of the leases are accounted for as operating leases. The lease agreements do not contain a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the present value of future minimum lease payments. The lease term for all of the Company’s leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream.

The components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

	Three Months Ended April 30,
	2025		2024
Operating lease expense	$	2,008	$	1,682
Variable lease expense		66		54
Total lease expense	$	2,074	$	1,736

Total cash paid for amounts included in the measurement of lease liabilities was $2.2 millions and $1.6 million in the three months ended April 30, 2025 and 2024, respectively.

The following table is a summary of future minimum rentals on such leases at April 30, 2025 (amounts in thousands):

Years Ended January 31,	Minimum Rentals
Remainder of 2026	$	5,792
2027		7,706
2028		6,378
2029		3,698
2030		2,036
Thereafter		133
Total		25,743
Less: present value discount		2,931
Operating lease liabilities	$	22,812

At April 30, 2025, the weighted average remaining lease term is 3.4 years, and the weighted average discount rate is 6.59% for the outstanding leases.

At January 31, 2025, the weighted average remaining lease term was 3.5 years, and the weighted average discount rate was 6.60% for the outstanding leases.

Finance Leases

At April 30, 2025, the Company had one lease agreement that was classified as a finance lease for an electrical substation facility. Prepayments totaling $15.6 million were made prior to fiscal year 2025, with monthly payments of approximately $39,000 to be made over the term of the lease, which was determined to be 10 years. The lease term for this lease includes the noncancelable period of the lease and any periods for which only the Company has the option to cancel but is reasonably expected to continue the lease. Based on this, the lease term was determined to be 10 years. Control of the facility’s output was transferred to the Company just before the end of the first quarter of 2025, with monthly payments commencing in the second quarter of 2025. As such, no significant expense has been incurred to-date as the first full month in service is not until the following quarter.

The weighted average remaining lease term for the finance lease is 10.0 years as of April 30, 2025. A discount rate of 6.9% was deemed appropriate as an incremental borrowing rate for a 10 year term.

The following table is a summary of future minimum rentals on such leases at April 30, 2025 (amounts in thousands):

Years Ended January 31,	Minimum Rentals
Remainder of 2026	$	391
2027		469
2028		469
2029		469
2030		469
Thereafter		2,423
Total		4,690
Less: present value discount		1,309
Operating lease liabilities	$	3,381