Leases (Tables)

6 Months Ended

Jul. 31, 2024

The quantitative information regarding our leases is as follows:


	Three Months Ended				Six Months Ended
	7/31/2024		7/31/2023		7/31/2024			7/31/2023
	(In thousands, except lease term and discount rate)
Operating lease cost	$	1,423	$	1,281	$	2,842		$	2,550
Short-term lease cost	130		80		234			188
Sublease income	(10)		(10)		(20)			(20)
Variable lease cost	690		160		618			421
Total lease cost	$	2,233	$	1,511	$	3,674		$	3,139

Other operating leases information:
Cash paid for amounts included in the measurement of lease liabilities					$	3,260		$	2,890
Right-of-use assets obtained in exchange for new lease liabilities (a)					$	34,012		$	364
Weighted-average remaining lease term (years)					6.0			1.7
Weighted-average discount rate					9.78		%	6.36		%

Schedule of Minimum Future Lease Payments

Minimum future lease payments for operating leases in effect as of July 31, 2024, are as follows:


	Operating Lease
For the year ending January 31,	(In thousands)
Remaining of 2025	$	3,232
2026	5,119
2027	9,416
2028	9,263
2029	9,587
Thereafter	16,739
Remaining balance of lease payments	53,356

Short-term lease liabilities	1,431
Long-term lease liabilities	37,204
Total lease liabilities	38,635

Difference between undiscounted cash flows and discounted cash flows	$	14,721

(a) On July 23, 2024, the Company entered into a new lease agreement (the “Lease”) with Starboard Distribution Center, LLC which extends the Company’s tenancy at its 560,000 sq. ft. office, manufacturing and warehouse facility in Torrance, California. The Lease extends the tenancy for 65 months, covering the period from May 1, 2025 through September 30, 2030. Under the Lease, the monthly base rent will be abated for the initial 5-month period from May 1, 2025 to September 30, 2025, then is set at $726,700 for October 1, 2025 through April 30, 2026, with subsequent increases of 3.5% every 12 months thereafter. The Lease also provides for a tenant improvement allowance of up to $1.7 million. The Landlord has the right to terminate the Lease upon customary events of default. In connection with this lease agreement, in the second quarter ended July 31, 2024, the Company recorded approximately $33.0 million (the present value of the future lease commitments) as an operating lease liability, and a corresponding ROU asset.