Leases

3 Months Ended

Apr. 30, 2022

The Company has operating leases on real property, equipment, and automobiles that expire at various dates. The Company determines if an arrangement is a lease at inception and assesses classification of the lease at commencement. All of the Company’s leases are classified as operating leases, as a lessee. The Company uses the implicit rate when readily determinable, or the incremental borrowing rate. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments using company specific credit spreads. The Company’s lease terms include options to extend or terminate the lease only when it is reasonably certain that we will exercise that option. Lease expense for our operating leases is recognized on a straight-line basis over the lease term.

The quantitative information regarding our leases is as follows:


	Three-Months Ended
			4/30/2022			4/30/2021
		(in thousands, except lease term and discount rate)
Operating lease cost			$	1,327		$	1,238
Short-term lease cost			97			96
Sublease income			(10)			(10)
Variable lease cost			253			530
Total lease cost			$	1,667		$	1,854

Other operating leases information:
Cash paid for amounts included in the measurement of lease liabilities			$	1,454		$	1,328
Right-of-use assets obtained in exchange for new lease liabilities			$	98		$	165
Weighted-average remaining lease term (years)			2.9			3.8
Weighted-average discount rate			6.38		%	6.40		%

Minimum future lease payments for operating leases in effect as of April 30, 2022, are as follows:


	Operating Lease
For the year ending January 31,	(in thousands)
2023	$	4,194
2024	5,511
2025	5,508
2026	1,382
2027	—
Thereafter	—
Remaining balance of lease payments	$	16,595

Short-term lease liabilities	$	4,769
Long-term lease liabilities	10,297
Total lease liabilities	$	15,066

Difference between undiscounted cash flows and discounted cash flows	$	1,529