10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-13490 

MIND TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

Delaware	76-0210849
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2002 Timberloch Place

Suite 400

The Woodlands, Texas 77380

(Address of principal executive offices, including Zip Code)

(281) 353-4475

(Registrant’s telephone number, including area code) 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock - $0.01 par value per share	MIND	The NASDAQ Stock Market LLC
Series A Preferred Stock - $1.00 par value per share	MINDP	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).       Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 13,773,742 shares of common stock, $0.01 par value, were outstanding as of June 2, 2021.

MIND TECHNOLOGY, INC.

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets as of April 30, 2021 and January 31, 2021	1
	Condensed Consolidated Statements of Operations for the Three Months Ended April 30, 2021 and 2020	2
	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended April 30, 2021 and 2020	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 30, 2021 and 2020	4
	Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended April 30, 2021 and 2020	5
	Notes to Condensed Consolidated Financial Statements	7
	Cautionary Statement about Forward-Looking Statements	15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	26
	Exhibit Index	26
	Signatures	28

ii

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)

	April 30, 2021		January 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	2,001	$	4,611
Accounts receivable, net of allowance for doubtful accounts of $952 and $948 at April 30, 2021 and January 31, 2021, respectively	3,649		4,747
Inventories, net	12,169		11,453
Prepaid expenses and other current assets	1,555		1,659
Assets held for sale	4,086		4,321
Total current assets	23,460		26,791
Property and equipment, net	4,586		4,751
Operating lease right-of-use assets	1,138		1,471
Intangible assets, net	6,337		6,750
Total assets	$	35,521	$	39,763
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,142	$	1,704
Deferred revenue	563		208
Accrued expenses and other current liabilities	3,038		2,912
Income taxes payable	902		1,041
Operating lease liabilities - current	665		1,008
Liabilities held for sale	972		963
Total current liabilities	8,282		7,836
Operating lease liabilities - non-current	473		463
Notes payable	—		850
Deferred tax liability	198		198
Total liabilities	8,953		9,347
Stockholders’ equity:
Preferred stock, $1.00 par value; 2,000 shares authorized; 1,059 and 1,038 shares issued and outstanding at April 30, 2021 and January 31, 2021, respectively	23,607		23,104
Common stock, $0.01 par value; 40,000 shares authorized; 15,704 and 15,681 shares issued at April 30, 2021 and January 31, 2021, respectively	157		157
Additional paid-in capital	128,403		128,241
Treasury stock, at cost (1,931 and 1,929 shares at April 30, 2021 and January 31, 2021, respectively)	(16,862)		(16,860)
Accumulated deficit	(104,438)		(99,870)
Accumulated other comprehensive loss	(4,299)		(4,356)
Total stockholders’ equity	26,568		30,416
Total liabilities and stockholders’ equity	$	35,521	$	39,763

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	For the Three Months Ended April 30,
	2021		2020
Revenues:
Sale of marine technology products	$	4,194	$	3,187
Total revenues	4,194		3,187
Cost of sales:
Sale of marine technology products	3,651		2,703
Total cost of sales	3,651		2,703
Gross profit	543		484
Operating expenses:
Selling, general and administrative	3,817		2,954
Research and development	853		410
Impairment of intangible assets	—		2,531
Depreciation and amortization	666		730
Total operating expenses	5,336		6,625
Operating loss	(4,793)		(6,141)
Other income:
Other, net	947		56
Total other income	947		56
Loss from continuing operations before income taxes	(3,846)		(6,085)
Benefit (provision) for income taxes	145		(342)
Loss from continuing operations	(3,701)		(6,427)
Loss from discontinued operations, net of income taxes	(283)		(215)
Net loss	$	(3,984)	$	(6,642)
Preferred stock dividends	(584)		(559)
Net loss attributable to common stockholders	$	(4,568)	$	(7,201)
Net loss per common share - Basic
Continuing operations	$	(0.31)	$	(0.57)
Discontinued operations	$	(0.02)	$	(0.02)
Net loss	$	(0.33)	$	(0.59)
Net loss per common share - Diluted
Continuing operations	$	(0.31)	$	(0.57)
Discontinued operations	$	(0.02)	$	(0.02)
Net loss	$	(0.33)	$	(0.59)
Shares used in computing net loss per common share:
Basic	13,759		12,172
Diluted	13,759		12,172

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)

	For the Three Months Ended April 30,
	2021		2020
Net loss attributable to common stockholders	$	(4,568)	$	(7,201)
Changes in cumulative translation adjustment	57		(131)
Comprehensive loss	$	(4,511)	$	(7,332)

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	For the Three Months Ended April 30,
	2021		2020
Cash flows from operating activities:
Net loss	$	(3,984)	$	(6,642)
Adjustments to reconcile net loss to net cash used in operating activities:
PPP loan forgiveness	(850)		—
Depreciation and amortization	668		1,701
Stock-based compensation	121		230
Impairment of intangible assets	—		2,531
Recovery of doubtful accounts	(453)		—
Provision for inventory obsolescence	327		22
Gross profit from sale of lease pool equipment	—		(850)
Gross profit from sale of other equipment	(80)		—
Changes in:
Accounts receivable	1,602		3,728
Unbilled revenue	51		(9)
Inventories	(739)		(554)
Prepaid expenses and other current and long-term assets	(239)		201
Income taxes receivable and payable	(168)		424
Accounts payable, accrued expenses and other current liabilities	947		300
Deferred revenue	(10)		(153)
Net cash (used in) provided by operating activities	(2,807)		929
Cash flows from investing activities:
Purchases of seismic equipment held for lease	—		(110)
Purchases of property and equipment	(8)		(65)
Sale of used lease pool equipment	—		1,414
Sale of business, net of cash sold	187		—
Net cash provided by investing activities	179		1,239
Cash flows from financing activities:
Purchase of treasury stock	(2)		—
Net proceeds from preferred stock offering	503		—
Net proceeds from common stock offering	42		—
Preferred stock dividends	(576)		(559)
Net cash used in financing activities	(33)		(559)
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash	51		(138)
Net (decrease) increase in cash, cash equivalents and restricted cash	(2,610)		1,471
Cash, cash equivalents and restricted cash, beginning of period	4,611		3,234
Cash, cash equivalents and restricted cash, end of period	$	2,001	$	4,705
Supplemental cash flow information:
Interest paid	$	9	$	11
Income taxes paid	$	31	$	149
Purchases of seismic equipment held for lease in accounts payable at end of period	$	—	$	702

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)

	Common Stock			Preferred Stock									Accumulated Other Comprehensive Loss
	Shares	Amount		Shares	Amount		Additional Paid-In Capital		Treasury Stock		Accumulated Deficit				Total
Balances, January 31, 2021	15,681	$	157	1,038	$	23,104	$	128,241	$	(16,860)	$	(99,870)	$	(4,356)	$	30,416
Net loss	—	—		—	—		—		—		(3,984)		—		(3,984)
Foreign currency translation	—	—		—	—		—		—		—		57		57
Restricted stock issued	5	—		—	—		11		—		—		—		11
Restricted stock forfeited for taxes	—	—		—	—		—		(2)		—		—		(2)
Preferred stock offering	—	—		21	503		—		—		—		—		503
Preferred stock dividends	—	—		—	—		—		—		(584)		—		(584)
Common stock offerings	18	—		—	—		42		—		—		—		42
Stock-based compensation	—	—		—	—		109		—		—		—		109
Balances, April 30, 2021	15,704	$	157	1,059	$	23,607	$	128,403	$	(16,862)	$	(104,438)	$	(4,299)	$	26,568

5

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)

	Common Stock			Preferred Stock									Accumulated Other Comprehensive Loss
	Shares	Amount		Shares	Amount		Additional Paid-In Capital		Treasury Stock		Accumulated Deficit				Total
Balances, January 31, 2020	14,097	$	141	994	$	22,104	$	123,964	$	(16,860)	$	(77,310)	$	(4,387)	$	47,652
Net loss	—	—		—	—		—		—		(6,642)		—		(6,642)
Foreign currency translation	—	—		—	—		—		—		—		(131)		(131)
Preferred stock dividends	—	—		—	—		—		—		(559)		—		(559)
Stock-based compensation	—	—		—	—		230		—		—		—		230
Balances, April 30, 2020	14,097	$	141	994	$	22,104	$	124,194	$	(16,860)	$	(84,511)	$	(4,518)	$	40,550

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

MIND TECHNOLOGY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Organization

MIND Technology, Inc., a Delaware corporation (the “Company”), formerly Mitcham Industries, Inc., a Texas corporation, was incorporated in 1987. Effective August 3, 2020 the Company effectuated a reincorporation to the state of Delaware. Concurrent with the reincorporation the name of the Company was changed to MIND Technology, Inc. and the number of shares of common stock and preferred stock authorized for issuance was increased. See Note 15 - Corporate Restructuring, to the condensed consolidated financial statements.

The Company, through its wholly owned subsidiaries, Seamap Pte Ltd, MIND Maritime Acoustics, LLC (formerly Seamap USA, LLC), Seamap (Malaysia) Sdn Bhd and Seamap (UK) Ltd (collectively “Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in Singapore, Malaysia, the United Kingdom and the states of New Hampshire and Texas. Prior to July 31, 2020, the Company, through its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), and its branch operations in Colombia, provided full-service equipment leasing, sales and service to the seismic industry worldwide (the “Leasing Business”). Effective July 31, 2020, the Leasing Business has been classified as held for sale on the financial results reported as discontinued operations (see Note 3 – “Assets Held for Sale and Discontinued Operations” for additional details). All intercompany transactions and balances have been eliminated in consolidation.

The lingering impacts of the global pandemic and emerging supply chain disruptions have created uncertainty in the global economy which could have a material adverse effect on the Company’s business, financial position, results of operations and liquidity. In addition, the Company has a history of operating losses and has had negative cash from operating activities. However, the Company has no funded debt or obligations containing financial covenants, working capital of approximately $15.2 million, including cash of approximately $2.0 million, backlog of firm orders of approximately $11.0 million as of April 30, 2021, the ability, and plans, to reduce costs to maintain positive cash flow, additional equity available to raise further capital, and lease pool equipment being actively marketed for sale. Based on these factors, Management expects the Company to continue to meet its obligations as they arise over the next twelve months.

2. Basis of Presentation

The condensed consolidated balance sheet as of January 31, 2021 for the Company has been derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2021 (“fiscal 2021”). In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position as of April 30, 2021, the results of operations for the three months ended April 30, 2021 and 2020, the cash flows for the three months ended April 30, 2021 and 2020, and the statement of stockholders’ equity for the three months ended April 30, 2021 and 2020, have been included in these condensed consolidated financial statements. The foregoing interim results are not necessarily indicative of the results of operations to be expected for the full fiscal year ending January 31, 2022 (“fiscal 2022”).

We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. On the consolidated balance sheets, income taxes payable, not related to discontinued operations has been reclassified from “Current liabilities held for sale” to “Current income taxes payable.”

3. Assets Held for Sale and Discontinued Operations

On July 27, 2020, the Board determined to exit the Leasing Business, which comprises essentially all operations of the Equipment Leasing segment. As a result, the assets, excluding cash, and liabilities of the Equipment Leasing segment are considered held for sale and the segment’s operations are reported as discontinued operations as of April 30, 2021 and for all comparative periods presented in these condensed consolidated financial statements. The Company originally anticipated selling the discontinued operations within twelve months from July 27, 2020, in multiple transactions, which may involve the sale of legal entities, assets, or a combination of both, but now anticipates completing the process within the next six months.

7

The assets reported as held for sale consist of the following:

	April 30, 2021		January 31, 2021
Current assets of discontinued operations:
Accounts receivable, net	1,310		1,668
Inventories, net	47		352
Prepaid expenses and other current assets	340		150
Seismic equipment lease pool and property and equipment, net	2,389		2,151
Total assets of discontinued operations	$	4,086	$	4,321

The liabilities reported as held for sale consist of the following:

	April 30, 2021		January 31, 2021
Current liabilities of discontinued operations:
Accounts payable	$	13	$	59
Deferred revenue	73		73
Accrued expenses and other current liabilities	915		831
Income taxes payable (receivable)	(29)		—
Total liabilities of discontinued operations	972		963

The results of operations from discontinued operations for the three months ended April 30, 2021 and 2020, consist of the following:

	For the Three Months Ended April 30,
	2021		2020
Revenues:
Revenue from discontinued operations	$	30	$	4,188
Cost of sales:
Cost of discontinued operations	373		2,484
Operating expenses:
Selling, general and administrative	342		1,700
Recovery of doubtful accounts	(443)		—
Depreciation and amortization	1		44
Total operating expenses	(100)		1,744
Operating loss	(243)		(40)
Other income (expenses)	(39)		3
Loss before income taxes	(282)		(37)
Provision for income taxes	(1)		(178)
Net loss	(283)		(215)

The significant operating and investing noncash items and capital expenditures related to discontinued operations are summarized below:

	For the Three Months Ended April 30,
	2021		2020
Depreciation and amortization	$	—	$	971
Gross profit from sale of lease pool equipment	$	—	$	(852)
Recovery of doubtful accounts	$	443	$	—
Purchase of seismic equipment held for lease	$	—	$	(110)
Sale of used lease pool equipment	$	—	$	1,414
Sale of assets held for sale	$	187	$	—

8

4. New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. The Company adopted this ASU effective February 1, 2021, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company adopted this guidance effective February 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

5. Revenue from Contracts with Customers

The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition:

	Three Months Ended April 30,
	2021		2020
Revenue recognized at a point in time:	(in thousands)
Seamap	$	2,913	$	2,014
Klein	1,150		998
Total revenue recognized at a point in time	$	4,063	$	3,012
Revenue recognized over time:
Seamap	$	131	$	175
Total revenue recognized over time	131		175
Total revenue from contracts with customers	$	4,194	$	3,187

The revenue from products manufactured and sold by our Seamap and Klein businesses is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. Our Seamap business also provides Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA’s is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract, which is typically twelve months.

The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers:

	Three Months Ended April 30,
	2021		2020
	(in thousands)
United States	$	359	$	1,075
Europe, Russia & CIS	2,582		1,376
Middle East & Africa	14		76
Asia-Pacific	705		302
Canada & Latin America	534		358
Total revenue from contracts with customers	$	4,194	$	3,187

9

As of April 30, 2021, and January 31, 2020, contract assets and liabilities consisted of the following:

	April 30, 2021		January 31, 2021
Contract Assets:	(in thousands)
Unbilled revenue - current	$	136	$	85
Total unbilled revenue	$	136	$	85
Contract Liabilities:
Deferred revenue & customer deposits - current	$	681	$	691
Deferred revenue & customer deposits - non-current	—		—
Total deferred revenue & customer deposits	$	681	$	691

Considering the products manufactured and sold by our Seamap and Klein businesses and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a period of three to nine months.

Pursuant to our accounting policies and procedures related to revenue from contracts with customers, sales and transaction-based taxes are excluded from revenue. Also, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, we expense costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses.

6. Balance Sheet - Continuing Operations

	As of April 30, 2021						As of January 31, 2021
	Current		Long-term		Total		Current		Long-term		Total
Accounts receivable	$	4,601	$	—	$	4,601	$	5,695	$	—	$	5,695
Less allowance for doubtful accounts	(952)		—		(952)		(948)		—		(948)
Accounts receivable net of allowance for doubtful accounts	$	3,649	$	—	$	3,649	$	4,747	$	—	$	4,747

	April 30, 2021		January 31, 2021
	(in thousands)
Inventories:
Raw materials	$	7,276	$	6,905
Finished goods	3,823		3,466
Work in progress	2,453		2,445
	13,552		12,816
Less allowance for obsolescence	(1,383)		(1,363)
Total inventories, net	$	12,169	$	11,453

	April 30, 2021		January 31, 2021
	(in thousands)
Property and equipment:
Marine seismic service equipment	$	4,533	$	5,969
Land and buildings	4,384		4,354
Furniture and fixtures	9,776		9,750
Autos and trucks	491		491
	19,184		20,564
Accumulated depreciation and amortization	(14,598)		(15,813)
Total property and equipment, net	$	4,586	$	4,751

As of January 31, 2021, the Company completed an annual review of long-lived assets noting that the undiscounted future cash flows exceeded their carrying value and no impairment has been recorded. Since January 31, 2021, there have been no significant changes to the market, economic or legal environment in which the Company operates that would indicate additional impairment analysis is necessary as of April 30, 2021.

10

7. Leases

The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Hungary, Singapore, Malaysia, Colombia, United Kingdom and Canada. We negotiated the termination of our Colombia lease obligation during the current period.

Lease expense for the three months ended April 30, 2021 was approximately $309,000 and was recorded as a component of operating loss. Included in these costs was short-term lease expense of approximately $10,000 for the three months ended April 30, 2021.

Supplemental balance sheet information related to leases as of April 30, 2021 and January 31, 2021 were as follows (in thousands):

Lease	April 30, 2021		January 31, 2021
Assets
Operating lease assets	$	1,138	$	1,471
Liabilities
Operating lease liabilities	$	1,138	$	1,471
Classification of lease liabilities
Current liabilities	$	665	$	1,008
Non-current liabilities	473		463
Total Operating lease liabilities	$	1,138	$	1,471

Lease-term and discount rate details as of April 30, 2021 and January 31, 2021 were as follows:

Lease term and discount rate	April 30, 2021		January 31, 2021
Weighted average remaining lease term (years)
Operating leases	1.11		1.09
Weighted average discount rate:
Operating leases	9.36	%	10	%

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 (in thousands):

Lease	Three Months Ended April 30, 2021		Three Months Ended April 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(309)	$	(293)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	309	$	293

Maturities of lease liabilities at April 30, 2021 were as follows (in thousands):

	April 30, 2021
2022	$	665
2023	397
2024	102
2025	58
2026	24
Thereafter	—
Total payments under lease agreements	$	1,246
Less: imputed interest	(108)
Total lease liabilities	$	1,138

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8. Goodwill and Other Intangible Assets

	Weighted Average Life at 4/30/2021	April 30, 2021								January 31, 2021
		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount
Goodwill		$	7,060	$	—	$	(7,060)	$	—	$	7,060	$	—	$	(7,060)	$	—
Proprietary rights	7.0	$	7,784	$	(3,807)	$	—	$	3,977	$	7,781	$	(3,688)	$	—	$	4,093
Customer relationships	0.6	5,024		(4,677)		—		347		5,024		(4,513)		—		511
Patents	3.3	2,440		(1,590)		—		850		2,440		(1,528)		—		912
Trade name	5.1	894		(77)		(760)		57		894		(74)		(760)		60
Developed technology	4.7	1,430		(762)		—		668		1,430		(727)		—		703
Other	3.1	684		(246)		—		438		684		(213)		—		471
Amortizable intangible assets		$	18,256	$	(11,159)	$	(760)	$	6,337	$	18,253	$	(10,743)	$	(760)	$	6,750

As of January 31, 2021, the Company has recorded impairment expense equal to 100% of the gross carrying amount of goodwill. As a result, no further review of goodwill is required. On January 31, 2021, the Company completed an annual review of intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the carrying value of intangible assets was greater than its fair market value. During the three months ended April 30, 2021 there have been no substantive indicators of impairment.

Aggregate amortization expense was $412,000 and $460,000 for the three months ended April 30, 2021 and 2020, respectively. As of April 30, 2021, future estimated amortization expense related to amortizable intangible assets was estimated to be (in thousands):

For fiscal years ending January 31
2022	$	896
2023	1,125
2024	989
2025	795
2026	658
Thereafter	1,874
Total	$	6,337

9. Notes Payable

On May 5, 2020, the Company, and its wholly owned subsidiary, Klein (collectively, the “Borrowers”), were granted loans (the “Loans”) from Bank of America, N.A. in the aggregate amount of approximately $1.6 million, pursuant to the Small Business Association's Paycheck Protection Program (the “PPP”), a component of the Coronavirus Aid, Relief, and Economic Security Act which was enacted on March 27, 2020.

The Loans, in the form of promissory notes (the “Notes”) dated May 1, 2020 issued by the Borrowers, mature on May 1, 2022 and bear interest at a rate of 1% per annum, payable monthly commencing on November 1, 2020. The Notes stipulate various restrictions customary with this type of transaction including representations, warranties, and covenants, in addition to events of default, breaches of representation and warranties or other provisions of the Notes. In the event of default, the Borrowers may become obligated to repay all amounts outstanding under the Notes. The Borrowers may prepay the Notes at any time prior to maturity with no prepayment penalties.

Under the terms of the PPP, funds from the Loans may only be used for payroll costs, rent, utilities and interest on other debt obligations incurred prior to February 15, 2020. In addition, certain amounts of the Loans may be forgiven if the funds are used to pay qualifying expenses.

In January 2021, the Loan granted to the Company in the amount of approximately $757,000 was forgiven resulting in other income of that amount. In February 2021, the Loan granted to Klein in the amount of approximately $850,000 was also forgiven, resulting in other income of that amount. As of April 30, 2021, the Company had no outstanding balance under the Loans.

10. Income Taxes

For the three months ended April 30, 2021, the benefit for income taxes from continuing operations was approximately $145,000 on a pre-tax net loss from continuing operations of $3.8 million. For the three months ended April 30, 2020, the expense for income taxes from continuing operations was approximately $342,000 on a pre-tax net loss from continuing operations of $6.1 million. The variance between our actual provision and the expected provision based on the U.S. statutory rate is due primarily to recording valuation allowances against the increase in our deferred tax assets in the respective periods, permanent differences between book income and taxable income, and the effect of foreign withholding taxes.

The Company files U.S. federal and state income tax returns as well as separate returns for its foreign subsidiaries within their local jurisdictions. The Company's U.S. federal tax returns are subject to examination by the Internal Revenue Service for fiscal years ended January 31, 2017 through 2021. The Company’s tax returns may also be subject to examination by state and local tax authorities for fiscal years ended

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January 31, 2015 through 2021. In addition, the Company's tax returns filed in foreign jurisdictions are generally subject to examination for the fiscal years ended January 31, 2015 through 2021.

The Company has determined that the undistributed earnings of foreign subsidiaries are not deemed to be indefinitely reinvested outside of the United States as of April 30, 2021. Furthermore, the Company has concluded that any deferred taxes with respect to the undistributed foreign earnings would be immaterial. Therefore, the Company has not recorded a deferred tax liability associated with the undistributed foreign earnings as of April 30, 2021.

For the three months ended April 30, 2021 and 2020, the Company did not recognize any tax expense or benefit related to uncertain tax positions.

11. Earnings per Share

Net income per basic common share is computed using the weighted average number of common shares outstanding during the period, excluding unvested restricted stock. Net income per diluted common share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect and from the assumed vesting of unvested shares of restricted stock.

The following table presents the calculation of basic and diluted weighted average common shares used in the earnings per share calculation:

	Three Months Ended April 30,
	2021	2020
	(in thousands)
Basic weighted average common shares outstanding	13,759	12,172
Stock options	94	—
Unvested restricted stock	27	4
Total weighted average common share equivalents	121	4
Diluted weighted average common shares outstanding	13,880	12,176

For the three and months ended April 30, 2021 and 2020, potentially dilutive common shares underlying stock options and unvested restricted stock were anti-dilutive and were therefore not considered in calculating diluted loss per share for those periods.

12. Related Party Transaction

On October 7, 2016, the Company entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. (the “Agent”). On December 18, 2019, the Company and Agent entered into an Amended and Restated equity distribution agreement (the “1st Equity Distribution Agreement”). Pursuant to the 1st Equity Distribution Agreement, the Company may sell up to 500,000 shares of 9.00% Series A Cumulative Preferred Stock (the “Preferred Stock”), par value $1.00 per share through an at-the-market offering program (the “1st ATM Offering Program”) administered by the Agent. The Co-Chief Executive Officer and Co-President of the Agent is the Non-Executive Chairman of the Board. Under the 1st Equity Distribution Agreement, the Agent was entitled to compensation of up to 2.0% of the gross proceeds from the sale of Preferred Stock under the 1st ATM Offering Program. As of January 31, 2020, we had issued 994,046 shares which represent 100% of the Series A Preferred Stock available for sale through the 1st Equity Distribution Agreement.

In September 2020 we entered into a new equity distribution agreement (the “2nd Equity Distribution Agreement”) with the Agent with economic terms essentially identical to the initial agreement. Pursuant to the 2nd Equity Distribution Agreement, the Company may sell up to 500,000 shares of Preferred Stock and 5,000,000 shares of $0.01 par value common stock (“Common Stock”) through a new at-the-market offering program (the “2nd ATM Offering Program”).

During the three months ended April 30, 2021, the Company sold 20,960 shares of Series A Preferred Stock under the 2nd ATM Offering Program, resulting in net proceeds to the Company of approximately $503,000. Compensation to the Agent during this period was approximately $10,000, none of which was received by the Non-Executive Chairman of the Board.

During the three months ended April 30, 2021, the Company sold 18,053 shares of Common Stock under the 2nd ATM Offering Program, resulting in net proceeds to the Company of approximately $42,000. Compensation to the Agent during this period was approximately $1,000, none of which was received by the Non-Executive Chairman of the Board.

13. Equity and Stock-Based Compensation

During the three months ended April 30, 2021, the Board declared quarterly dividends of $0.5625 per share for our Preferred Stock. See Note 12 to our condensed consolidated financial statements. Total compensation expense recognized for stock-based awards granted under the

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Company’s equity incentive plan during the three months ended April 30, 2021 and 2020 was approximately $109,000 and $230,000, respectively.

14. Segment Reporting

With the designation of the Equipment Leasing segment as discontinued operations as of July 31, 2020, the Company operates in one segment, Marine Technology Products. The Marine Technology Products segment is engaged in the design, manufacture and sale of state-of-the-art seismic and offshore telemetry systems. Manufacturing, support and sales facilities are maintained in the United Kingdom, Singapore, Malaysia and the states of New Hampshire and Texas.

15. Corporate Restructuring

On August 3, 2020, the Company, formerly Mitcham Industries, Inc., completed the reincorporation from the State of Texas to the State of Delaware, including a name change to MIND Technology, Inc. The change in legal domicile and company name were approved by the affirmative vote of the holders of more than two-thirds of the votes of the Company’s Common Stock and Preferred Stock, voting separately, at the Annual Meeting of Stockholders held on July 27, 2020. As part of the reincorporation merger, the stockholders approved an increase in the number of authorized shares of capital stock from 21,000,000 shares to 42,000,000 shares, consisting of (i) 40,000,000 shares of Common Stock (up from 20,000,000 shares), and (ii) 2,000,000 shares of Preferred Stock (up from 1,000,000 shares).

Pursuant to the terms of the reincorporation merger, each outstanding share of Common Stock and each share of Preferred Stock of Mitcham Industries, Inc., the Texas corporation, automatically converted into one share of Common Stock and one share of Series A Preferred Stock, respectively, of MIND Technology, Inc., the Delaware corporation. Stockholders who hold physical stock certificates are not required to, but may, exchange stock certificates as a result of the reincorporation. The Company’s Common Stock and Preferred Stock continued to trade on the NASDAQ Global Select Market under their ticker symbols, “MIND” and “MINDP”, respectively. The Company’s Common Stock was assigned a new CUSIP number of 602566 101 and the Company’s Preferred Stock was assigned a new CUSIP number of 602566 200.

No changes were made to the Board, management, business or operations of the Company as a result of the reincorporation. The Company’s corporate headquarters remains in Texas.

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CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report on Form 10-Q (this “Form 10-Q”) may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “expect,” “may,” “will,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could” or other similar expressions are intended to identify forward-looking statements, which are not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts of our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:

•risks associated with our manufacturing operations including availability and reliability of materials and components as well the reliability of the products that we manufacture and sale;

•loss of significant customers;

•the impact of disruptions in global supply chains due to the COVID-19 pandemic, including increased lead times for components and materials, as well as increased costs for such items;

•increased competition;

•loss of key suppliers;

•intellectual property claims by third parties;

•the effect of uncertainty in financial markets on our customers’ and our ability to obtain financing;

•our ability to successfully execute strategic initiatives to grow our business;

•local and global impacts of the COVID-19 virus, including effects of responses of governmental authorities and companies to reduce the spread of COVID-19, such as shutdowns, travel restrictions and work-from-home mandates;

•uncertainties regarding our foreign operations, including political, economic, currency environmental regulation and export compliance risks;

•seasonal fluctuations that can adversely affect our business;

•fluctuations due to circumstances beyond our control or that of our customers;

•defaults by customers on amounts due us;

•possible further impairment of our long-lived assets due to technological obsolescence or changes in anticipated cash flow generated from those assets;

•inability to obtain funding or to obtain funding under acceptable terms; and

•demand for seismic data is not assured and depends on the level of spending by oil and gas companies for exploration, production and development activities, thereby potentially negatively impacted the value of our assets held for sale.

For additional information regarding known material factors that could cause our actual results to differ materially from our projected results, please see (1) Part II, “Item 1A. Risk Factors” of this Form 10-Q, (2) Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, and (3) the Company’s other filings filed with the SEC from time to time.

There may be other factors of which the Company is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement after the date they are made, whether as the result of new information, future events or otherwise, except as required by law. All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

MIND Technology, Inc., a Delaware corporation, formerly Mitcham Industries, Inc., a Texas corporation, was incorporated in 1987. Effective August 3, 2020 we effectuated a reincorporation to the state of Delaware, name change to MIND Technology, Inc. and increase in the number of shares of Common Stock and Preferred Stock authorized for issuance. See Note 15 - “Corporate Restructuring” to our condensed consolidated financial statements for additional details.

Historically, we have operated in two segments, Marine Technology Products and Equipment Leasing. During the second quarter of fiscal 2021, our Board determined to exit the Leasing Business and instructed management to develop and implement a plan to dispose of those operations. Accordingly, the assets, excluding cash, and liabilities of the Leasing Business are considered held for sale and the Leasing Business operations are presented as discontinued operations. See Note 3 - “Assets Held for Sale and Discontinued Operations” to our condensed consolidated financial statements for more details.

Revenue from the Marine Technology Products segment includes sales of Seamap equipment and sales of Klein equipment. This segment operates from locations near Bristol, United Kingdom, Salem, New Hampshire, Huntsville, Texas, Johor, Malaysia and in Singapore.

The discontinued operations of the Equipment Leasing segment includes all leasing activity, sales of lease pool equipment and certain other equipment sales and services related to those operations. This business had been conducted from our locations in Huntsville, Texas; Calgary, Canada; Bogota, Colombia; and Budapest, Hungary. This included the operations of our subsidiaries Mitcham Canada, ULC, Mitcham Europe Ltd. and our branch in Colombia.

Management believes that the performance of our Marine Technology Products segment is indicated by revenues from equipment sales and by gross profit from those sales. Management monitors EBITDA and Adjusted EBITDA, both as defined and reconciled to the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles (“GAAP”), in the following table, as key indicators of our overall performance and liquidity.

	For the Three Months Ended April 30,
	2021		2020
Reconciliation of Net loss from Continuing Operations to EBITDA and Adjusted EBITDA
Net loss from continuing operations	$	(3,701)	$	(6,427)
Interest expense (income), net	9		—
Depreciation and amortization	666		765
(Benefit) provision for income taxes	(145)		342
EBITDA from continuing operations (1)	(3,171)		(5,320)
Non-cash foreign exchange losses	49		11
Stock-based compensation	121		230
Impairment of intangible assets	—		2,531
Adjusted EBITDA from continuing operations (1)	$	(3,001)	$	(2,548)
Reconciliation of Net Cash Used in Operating Activities to EBITDA
Net cash (used in) provided by operating activities	$	(2,807)	$	929
PPP loan forgiveness	850		—
Stock-based compensation	(121)		(230)
Provision for inventory obsolescence	(22)		(22)
Changes in accounts receivable (current and long-term)	(1,104)		(3,135)
Interest paid	—		11
Taxes paid, net of refunds	31		149
Gross profit from sale of other equipment	80		—
Changes in inventory	741		556
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue	(920)		(344)
Impairment of intangible assets	—		(2,531)
Changes in prepaid expenses and other current and long-term assets	168		(159)
Other	(67)		(544)
EBITDA from continuing operations (1)	$	(3,171)	$	(5,320)

(1)EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA is defined as net income before (a) interest income and interest expense, (b) provision for (or benefit from) income taxes and (c) depreciation and amortization. Adjusted EBITDA excludes non-cash foreign exchange gains and losses, stock-based compensation, impairment of intangible assets, other non-cash tax related items and non-cash costs of lease pool equipment sales. We consider EBITDA and Adjusted EBITDA to be important indicators for the performance of our business, but not measures of performance or

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liquidity calculated in accordance with GAAP. We have included these non-GAAP financial measures because management utilizes this information for assessing our performance and liquidity, and as indicators of our ability to make capital expenditures, service debt and finance working capital requirements and we believe that EBITDA and Adjusted EBITDA are measurements that are commonly used by analysts and some investors in evaluating the performance and liquidity of companies such as us. In particular, we believe that it is useful to our analysts and investors to understand this relationship because it excludes transactions not related to our core cash operating activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under GAAP and should not be considered in isolation or as alternatives to cash flow from operating activities or as alternatives to net income as indicators of operating performance or any other measures of performance derived in accordance with GAAP. In evaluating our performance as measured by EBITDA, management recognizes and considers the limitations of this measurement. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA and Adjusted EBITDA are only two of the measurements that management utilizes. Other companies in our industry may calculate EBITDA or Adjusted EBITDA differently than we do and EBITDA and Adjusted EBITDA may not be comparable with similarly titled measures reported by other companies.

Within our Marine Technology Products segment, we design, manufacture and sell a variety of products used primarily in oceanographic, hydrographic, defense, seismic and maritime security industries. Seamap’s primary products include (i) the GunLink seismic source acquisition and control systems, which provide marine operators more precise control of exploration tools; (ii) the BuoyLink RGPS tracking system used to provide precise positioning of seismic sources and streamers (marine recording channels that are towed behind a vessel) and (iii) SeaLink marine sensors and solid streamer systems (collectively, the “SeaLink” product line or “towed streamer products”). These towed streamer products are primarily designed for three-dimensional, high-resolution marine surveys in hydrographic industry applications. Klein designs, manufactures and sells side scan sonar and water-side security systems to commercial, governmental and military customers throughout the world.

Our discontinued operations consisted primarily of leasing seismic data acquisition equipment primarily to seismic data acquisition companies conducting land surveys worldwide. We provided short-term leasing, typically for a term of less than one year, of seismic equipment to meet a customer’s requirements. From time to time, we sold lease pool equipment. Those sales were transacted when we had equipment for which we did not have near term needs in our leasing business or which was otherwise considered excess. Additionally, when equipment that has been leased to a customer was lost or destroyed, the customer was charged for such equipment at amounts specified in the underlying lease agreement.

Our results of operations can experience fluctuations in activity levels due to a number of factors outside of our control. These factors include budgetary or financial concerns, difficulties in obtaining licenses or permits, security problems, labor or political issues, inclement weather, and other unforeseen circumstances such as the recent COVID-19 pandemic (the “Pandemic”). See Part II, Item 1A-- “Risk Factors.”

Business Outlook

The Pandemic created significant uncertainty in the global economy, which we believe has had an adverse effect on the Company’s business, financial position, results of operations and liquidity. We believe the resulting uncertainty caused many customers to delay purchasing decisions. Furthermore, travel restrictions limited our ability to interact with customers and to demonstrate our products. Similar restrictions, we believe, caused delays in certain governmental evaluation programs involving our technology. Recently we have seen indications of improving activity and the relaxation of pandemic related restrictions in some areas. However, the time frame for which disruptions related to the Pandemic will continue is uncertain, as is the magnitude of any adverse impacts. In fiscal 2021, we were required to temporarily shutdown our facilities in Malaysia and Singapore on March 17, 2020, and April 7, 2020, respectively. The Malaysia facility was reopened on April 21, 2020 with approximately 50% of its normal staff and resumed operations with 100% of its employees on May 4, 2020. In Singapore, we were able to continue limited shipping and receiving operations during the shutdown and were able to resume manufacturing operations on June 1, 2020. However, travel between our Singapore and Malaysia facilities is limited, which has made management and coordination more difficult. In addition, in May 2021, Singapore reimposed certain workplace restrictions. While we are able to maintain full operation, we are required to rotate personnel and allow some personnel to work remotely.

Our other facilities have been allowed to operate, although at reduced efficiencies in some cases as certain employees have worked remotely from time to time. Furthermore, travel restrictions resulting from the Pandemic have impacted our ability to visit customers, conduct product demonstrations and visit our various operating locations. These disruptions have had, and we expect they will continue to have, a negative effect on our business; however, the duration and magnitude of these disruptions are uncertain. Management believes that the negative impact is subsiding, but there can be no assurance of that.

Recently, we have begun to experience difficulties in our global supply chain. Lead times for some components and materials have increased as have prices for some items. Additionally, shipping times and costs have increased, particularly for ocean freight. We believe these issues will be temporary but there can be no assurance of that and these conditions could have an adverse effect on our operations and financial results.

Additionally, oil prices declined sharply during the first quarter of fiscal 2021 in response to the economic effects of the Pandemic and the announcement of Saudi Arabia’s abandonment of output restraints. While oil prices have recovered significantly, continuing uncertainty could have an adverse effect on our customers in the energy industry, which could cause them to cancel or delay projects and orders with us, or impair their ability to make payments to us. Many of our marine customers have recently indicated increases in backlog, which we believe is a positive indication of a recovery in fiscal 2022 and beyond. The general economic environment concerning the energy industry could also impact our ability to realize value from our discontinued operations.

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In the fourth quarter of fiscal 2021 we began to experience an increase in orders and inquiries for marine exploration applications, particularly for our source controller products. Our GunLink seismic source controllers have certain capabilities that we believe are unique and that increasingly certain of these capabilities are required of operators of seismic exploration vessels. Based on this, and on discussions with current and potential customers, we believe demand for our GunLink source controllers will continue, although there can be no assurance of this. Furthermore, during the first quarter of fiscal 2022, we entered into an indefinite quantity, indefinite delivery supply agreement with a major international marine seismic contractor. While we have not yet received a firm order related to this agreement, we do expect the arrangement to result in additional sales of our source controller products. Based on discussion with a particular customer, we expect to receive an order for a source controller and other related equipment related to a new build vessel.

In recent months, we have continued to experience significant inquiries and bid activity for our other marine technology products and have conducted a number of demonstrations for various customers, including the U.S. Navy. However, we believe many customers have delayed purchase commitments due to the uncertainty in the global economy. Accordingly, we have not experienced the number of firm orders that we would have normally expected from the current level of inquiries and bid activity. As of April 30, 2021, our backlog of firm orders for our Marine Technology Products business was approximately $11.0 million, as compared to approximately $14.1 million as of January 31, 2021 and $10.2 million at April 30, 2020. We expect essentially all of these orders to be completed within fiscal 2022 and therefore expect revenues from continuing operations in fiscal 2022 to exceed those of fiscal 2021. During the first quarter of fiscal 2022, a customer cancelled an order for approximately $2.1 million due to changes in their requirements. We expect other orders from this customer in coming months as those requirements are more clearly defined. Additionally, we received two specific orders totaling more than $5.0 million during the second quarter of fiscal 2022. The level of backlog at a particular point in time may not necessarily be indicative of results in subsequent periods as the size and delivery period of individual orders can vary significantly.

Going forward we intend to address three primary markets in our Marine Technology Products segment :

•Marine Survey

•Marine Exploration

•Maritime Defense

Specific applications within those markets include sea-floor survey, search and recovery, mineral and geophysical exploration, mine counter measures and anti-submarine warfare. We have existing technology and products that meet needs across all these markets such as:

•Side-scan sonar

•Bathymetry systems

•Acoustic arrays, such as SeaLink

•Marine seismic equipment, such as GunLink and BuoyLink

We see a number of opportunities to add to our technology and to apply existing technology and products to new applications.

In fiscal 2020, we introduced new sonar technology that we refer to as “MA-XTM” and we received an order from a manufacturer of unmanned underwater vehicles (“UUV’s”) for a MA-XTM related product to be installed on one of their UUV’s. This request relates to a potentially significant program for the U.S. Navy. While this specific order may not have a material impact on our results of operations, we believe this, and similar opportunities could have a material impact on our operations. During fiscal 2021 we introduced technology based on MA-XTM specifically focused on the rapidly growing autonomous vehicle market and entered into an agreement with a major European defense contractor for the joint offering of synthetic aperture sonar (“SAS”). We believe that each of these initiatives can significantly expand our serviceable market. Also during fiscal 2021, we began development of passive sonar arrays based on our SeaLink technology. We believe this technology is well suited for maritime security applications such as anti-submarine warfare, particularly in application involving unmanned vessels.

We are also pursuing a number of initiatives to further expand our product offerings. These initiatives include new internally developed technology, introduction of new products based on our existing technology, technology obtained through partnering arrangements with others and a combination of all of these. There can be no assurance that any of these initiatives will ultimately have a material impact on our financial position or results of operations. Certain of the business opportunities that we are pursuing are with military or other governmental organizations. The sales cycle for these projects can be quite long and can be impacted by a variety of factors, including the level of competition and budget limitations. Therefore, the timing of contract awards is often difficult to predict. However, once awarded, programs of this type can extend for many years. To date, the most of our revenues have been from commercial customers; however, we expect the proportion of revenue related to military or governmental customers will increase in the future.

We believe there are certain developments within the marine technology industry that can have a significant impact on our business. These developments include the following:

•The increase in the use of unmanned, or uncrewed, marine vessels, both surface vehicles and underwater vehicles, and the need for a variety of sensor packages designed for these applications.

•Demand for higher resolution sonar images, such as for mine countermeasure applications.

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•Demand for economical, commercially developed, technology for anti-submarine warfare and maritime security applications.

In response to these, and other, developments we have initiated certain strategic initiatives in order to exploit the opportunities that we perceive. These initiatives include the following:

•Development of side-scan sonar and other sensor systems specifically for unmanned vehicles, including integration of our MA-XTM technology;

•Development of SAS sonar systems in cooperation with a major European defense contractor; and

•Application of our SeaLink solid streamer technology to passive sonar arrays for use in maritime security applications, such as anti-submarine warfare.

In fiscal 2021 we took steps to reduce expenses including the layoff or furloughing of certain employees and contractors and the deferral of other expenditures, in response to the effects of the Pandemic on the economic environment. Should the effects of the Pandemic continue in fiscal 2022, we may take further steps to reduce costs. We believe the majority of our costs are variable in nature, such as raw materials and labor related costs. Accordingly, we believe we can reduce such costs commensurate with any declines in our business.

Our revenues and results of operations have not been materially impacted by inflation or changing prices in the past two fiscal years, except as described above.

Results of Continuing Operations

Revenues for the three months ended April 30, 2021 were approximately $4.2 million compared to approximately $3.2 million for the three months ended April 30, 2020. We believe the increase in the first quarter of fiscal 2022 is due in large part to lifting of restrictions on commerce that were present in the prior period as a result of the Pandemic. For the three months ended April 30, 2021, we generated an operating loss of approximately $4.8 million, compared to an operating loss of approximately $6.1 million for the three months ended April 30, 2020. The decrease in operating loss during the three-month period ended April 30, 2021 is primarily attributable to a goodwill impairment charge related to our Seamap reporting unit in the prior year period that did not recur in the current quarter. In addition, the current quarter operating loss was impacted by higher research and development and general and administrative costs. A more detailed explanation of these variations follows.

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Revenues and Cost of Sales

Revenues and cost of sales for our Marine Technology Products segment were as follows:

	Three Months Ended April 30,
	2021			2020
	(in thousands)
Revenues:
Seamap	$	3,044		$	2,212
Klein	1,156			1,241
Intra-segment sales	(6)			(266)
	4,194			3,187
Cost of sales:
Seamap	2,597			1,893
Klein	1,060			1,076
Intra-segment sales	(6)			(266)
	3,651			2,703
Gross profit	$	543		$	484
Gross profit margin	13		%	15		%

A significant portion of Seamap’s sales consists of large discrete orders, the timing of which is dictated by our customers. This timing generally relates to the availability of a vessel in port so that our products can be installed. Accordingly, there can be significant variation in sales from one period to another, which does not necessarily indicate a fundamental change in demand for these products. We believe the increase in Seamap revenues is due in large part to lifting of commerce restrictions, previously caused by the Pandemic, including the temporary shutdown of our production facilities in the prior period. Revenues in the first quarter of fiscal 2022 were less than in the fourth quarter of fiscal 2021 and less than we expected. We believe lingering effects of the Pandemic and the resulting impact on the global supply chain has impacted certain of our customers. In some cases, customers have delayed placing or accepting orders. We believe that delays in these customers receiving related products and materials from other supplier have contributed to these delays. The gross profit and gross profit margins generated by sales of Seamap products were approximately $447,000 and 15% in the first quarter of fiscal 2022 and approximately $319,000 and 14% in the first quarter of fiscal 2021. The increase in gross profit margins between the periods is due primarily to the mix of products and services sold in the respective periods.

Revenue from the sale of Klein products remained relatively flat year over year, at approximately $1.2 million for the first quarter of fiscal 2022 and fiscal 2021. Gross profit was approximately $96,000 and $165,000 for the first quarter of fiscal 2022 and 2021, respectively. The decline in gross profit margin in the first quarter of fiscal 2022 was due mainly to lower absorption of overhead costs and higher product testing and sustaining engineering activity during the period.

Operating Expenses

General and administrative expenses for the three months ended April 30, 2021 increased to approximately $3.8 million from approximately $3.0 million for the three months ended April 30, 2020. The increase in general and administrative expenses includes higher travel and entertainment expenses, due mainly to reduced pandemic related travel restrictions in the current period, and higher compensation costs resulting from the recent addition of several strategic corporate level positions. In addition, the current period general and administrative costs from continuing operations includes certain personnel, facility and overhead costs which were included in discontinued operations in the prior year period.

Research and development costs were approximately $853,000 in the three-month period ended April 30, 2021, as compared to approximately $410,000 in the three-month period ended April 30, 2020. The increase in these costs reflects activity in the strategic initiatives noted above, including our SAS system, passive sonar arrays and sensor packages specifically for unmanned systems.

Depreciation and amortization expense include depreciation of equipment, furniture and fixtures and the amortization of intangible assets. These costs were approximately $666,000 in the three-month period ended April 30, 2021, as compared to approximately $730,000 in the three-month period ended April 30, 2020. The lower depreciation and amortization expense in the three-month period of fiscal 2022 is due primarily to assets becoming fully depreciated over time.

During the three months ended April 30, 2021, it was determined that there were no substantive indicators of impairment. During the quarter ended April 30, 2020, due to deterioration in macroeconomic factors and a decline in the market value of our equity securities subsequent to January 31, 2020, we concluded that goodwill was impaired and recorded an impairment charge of approximately $2.5 million in the first quarter of fiscal 2021.

20

Provision for Income Taxes

For the three months ended April 30, 2021, we reported tax benefit of approximately $145,000 on pre-tax net loss from continuing operations, and for the three months ended April 30, 2020, we reported a tax expense of approximately $342,000 on pre-tax net loss from continuing operations. Our recorded tax benefit and expense in the three and nine-month periods ended April 30, 2021 and 2020, are less than the benefit or expense that would be derived by applying the applicable statutory rate to loss before tax from continuing operations in each of these periods, due mainly to the effect of permanent differences between book and taxable income, foreign withholding taxes and recording valuation allowances against increases in our deferred tax assets.

Results of Discontinued Operations

Revenues and cost of sales from our Equipment Leasing segment were comprised of the following:

	For the Three Months Ended April 30,
	2021	2020
Revenues:
Equipment leasing	30	2,575
Lease pool equipment sales	—	1,437
Other equipment sales	—	176
	30	4,188
Cost of sales:
Direct costs-equipment leasing	373	845
Lease pool depreciation	—	926
Cost of lease pool equipment sales	—	586
Cost of other equipment sales	—	127
	373	2,484
Gross profit (loss)	(343)	1,704
Operating expenses:
Selling, general and administrative	342	1,700
Recovery of doubtful accounts	(443)	—
Depreciation and amortization	1	44
Total operating expenses	(100)	1,744
Operating loss	(243)	(40)
Other income (expenses)	(39)	3
Loss before income taxes	(282)	(37)
Provision for income taxes	(1)	(178)
Net loss	(283)	(215)

Following the decision to exit the Leasing Business and present those operations as discontinued operations, we no longer recognize depreciation expense related to our lease pool of seismic equipment, but rather reassess, on a quarterly basis, the recoverability of the remaining carrying value of those assets. Similarly, we no longer recognize gain or loss from the sale of individual lease pool assets, but treat any proceeds from such transactions as a reduction in the carrying value of the lease pool.

Revenue from discontinued operations during the first quarter of fiscal 2022 decreased to $30,000, compared to $4.2 million for the first quarter of fiscal 2021. The reduction in revenue is due to the curtailment of Equipment Leasing activity as a result of the decision to exit the Leasing Business and the change in treatment of lease pool sales as discussed above.

Direct costs related to Equipment Leasing dropped to approximately $373,000 for the first quarter of fiscal year 2022 from approximately $845,000 reported in the same period for 2020. A significant portion of direct costs are generally fixed and therefore do not fluctuate with the level of leasing revenue. For the three-month period ended April 30, 2021, lease pool depreciation decreased approximately $926,000 from the three months ended April 30, 2020, due to the fact that we are no longer recording lease pool depreciation on discontinued operations.

Selling, general and administrative costs related to the Leasing Business decreased to approximately $342,000 in the three months ended April 30, 2021, from approximately $1.7 million in the same period one year ago. The reduction in selling, general and administrative expense is due to permanent headcount reductions, closing and downsizing facilities, and lower overall operating costs due to the significant decline in activity. In addition, the current period general and administrative costs from discontinued operations excludes certain personnel, facility and overhead costs which are included in continuing operations for the three months ended April 30, 2021.

Our tax expense for the three months ended April 30, 2021, was approximately $1,000 on pre-tax net loss from discontinued operations. For the three months ended April 30, 2020, we reported tax expense of approximately $178,000 on pre-tax net loss from discontinued operations. We recorded tax provisions in the three-month periods ended April 30, 2021, and 2020, despite generating a loss before income taxes from discontinued operations in each of these periods, due mainly to the effect of foreign withholding taxes and recording valuation allowances against increases in our deferred tax assets.

21

Liquidity and Capital Resources

As discussed above, the Pandemic and volatility in oil prices has created significant uncertainty in the global economy, which could have an adverse effect on our business, financial position, results of operations and liquidity. The period for which disruptions related to the Pandemic will continue is uncertain as is the magnitude of any adverse impacts. We believe that any negative impacts have begun to subside but there can be no assurance of that.

The Company has a history of operating losses, has generated negative cash from operating activities in each of the last four quarters and has relied on cash from the sale of lease pool equipment and preferred stock pursuant to the 2nd ATM Offering Program established in the third quarter of fiscal 2021.

Notwithstanding the negative impacts of the Pandemic and history of operating losses noted above, management believes there are factors and actions available to the Company to address liquidity concerns, including the following:

•The Company has no funded debt or other outstanding obligations, outside of normal trade obligations.

•The Company has no obligations or agreements containing “maintenance type” financial covenants.

•The Company has working capital of approximately $15.2 million as of April 30, 2021, including cash of approximately $2.0 million.

•Should revenues be less than projected, the Company believes it is able, and has plans, to reduce costs proportionately in order to maintain positive cash flow.

•The majority of the Company’s costs are variable in nature, such as raw materials and personnel related costs. The Company has terminated or furloughed certain employees and contractors in response to market conditions.

•Despite the temporary suspension of operations in Malaysia and Singapore early in fiscal 2021, operations continued uninterrupted at other locations. Certain of these operations have been deemed “essential businesses” by authorities. However, there can be no assurance that there will not be further suspensions in the future.

•The Company has a backlog of orders of approximately $11.0 million as of April 30, 2021, which is a decrease from the record amount at January 31, 2021, but an increase of approximately 9% from April 30, 2020.

•The Company has been successful in selling certain assets held for sale and expects to generate further liquidity from such transactions in fiscal 2022.

•The Company has declared and paid the quarterly dividend on its Series A Preferred Stock for the first quarter of fiscal 2022, and each quarter in fiscal 2021, but such quarterly dividends could be suspended in the future.

•Despite the challenging economic environment in fiscal 2021, the Company successfully expanded its authorized capital stock (See Note 15 - Corporate Restructuring) and raised approximately $4.6 million in new capital through the sale of common and preferred stock pursuant to the 2nd ATM Offering Program. Management expects to be able to raise further capital through the 2nd ATM Offering Program should the need arise.

•Based on publicized transactions and preliminary discussions with potential funding sources, management believes that other sources of debt and equity financing are available should the need arise.

Based on the factors and actions available to the Company as discussed above, Management expects the Company to continue to meet its obligations as they arise over the next twelve months.

Our principal sources of liquidity and capital over the past two fiscal years have been proceeds from issuances of preferred stock and from the sale of lease pool equipment.

Under our Amended and Restated Certificate of Incorporation, we have 2,000,000 shares of preferred stock and 40,000,000 shares of Common Stock authorized which we believe provides capacity for subsequent issues of common stock or preferred stock.

The Series A Preferred Stock has been issued in a June 2016 public offering, as consideration to Mitsubishi Heavy Industries, Ltd (“MHI”), and in the 1st and 2nd ATM Offering Programs. The Series A Preferred Stock (i) allows for redemption on at our option (even in the event of a change of control), (ii) does not grant holders with voting control of our Board of Directors, and (iii) provides holders with a conversion option (into common stock) only upon a change of control which, upon conversion, would be subject to a limit on the maximum number of shares of common stock to be issued. Through April 30, 2021, we have issued 1,059,192 shares of our Series A Preferred Stock.

During the three months ended April 30, 2021, under the 2nd ATM Offering Program, the Company sold (i) 18,053 shares of Common Stock, resulting in net proceeds to the Company of approximately $42,000, after deducting offering costs and (ii) 20,960 shares of Series A Preferred Stock, resulting in net proceeds to the Company of approximately $503,000.

22

The following table sets forth selected historical information regarding cash flows from our Consolidated Statements of Cash Flows:

	For the Three Months Ended April 30,
	2021		2020
	(in thousands)
Net cash (used in) provided by operating activities	$	(2,807)	$	929
Net cash provided by investing activities	179		1,239
Net cash used in financing activities	(33)		(559)
Effect of changes in foreign exchange rates on cash and cash equivalents	51		(138)
Net decrease in cash and cash equivalents	$	(2,610)	$	1,471

As of April 30, 2021, we had working capital of approximately $15.2 million, including cash and cash equivalents and restricted cash of approximately $2.0 million, as compared to working capital of approximately $19.0 million, including cash and cash equivalents and restricted cash of approximately $4.6 million, at January 31, 2021. Our working capital decreased during the first three months of fiscal 2022 as compared to the same period in fiscal 2021 due primarily to reductions in accounts receivable and an increase in accounts payable and accrued liabilities.

Cash Flows from Operating Activities. Net cash used in operating activities was approximately $2.8 million in the first three months of fiscal 2022 as compared to approximately $929,000 of cash provided by operating activities in the first three months of fiscal 2021. In the quarter ended April 30, 2021, the primary sources of cash used in operating activities was our net loss of $4.0 million, net of non-cash charges, including depreciation and amortization and provision for inventory obsolescence totaling approximately $1.0 million. In addition, the net change in working capital items, such as accounts receivable and accounts payable, decreased net cash used in operating activities by approximately $1.0 million.

Cash Flows from Investing Activities. Cash provided from investing activities decreased during the first three months of fiscal 2022 compared to the same period in the prior year. The decrease is primarily due to reduced proceeds from the sale of lease pool equipment and the sale of assets held for sale.

We had no proceeds from sale of lease pool equipment and assets held for sale during the first three months of fiscal 2022 compared to approximately $1.4 million in the first three months of fiscal 2021. Due to the decision to exit the Leasing Business we are currently seeking to sell the remaining equipment from our lease pool. However, there is no guarantee additional sales of lease pool equipment will occur. Accordingly, cash flow from the sale of lease pool equipment is unpredictable. Proceeds from any additional sales of lease pool equipment will be deployed in other areas of our business or used for general corporate purposes.

Cash Flows from Financing Activities. Net cash provided by financing activities in the first three months of fiscal 2021 consisted of approximately $42,000 of proceeds from sales of Common Stock, approximately $503,000 of proceeds from sales of Preferred Stock, offset by approximately $576,000 of preferred stock dividend payments, as compared to approximately $559,000 of preferred stock dividend payments in the prior year period. Our 1st ATM Offering Program related to the Series A Preferred Stock was concluded in the fourth quarter of fiscal 2020. In September 2020, we launched the 2nd ATM Offering Program to sell up to 500,000 shares of Preferred Stock and 5,000,000 shares of $0.01 par value Common Stock of the Company. During the three months ended April 30, 2021, under the 2nd ATM Offering Program, the Company sold (i) 18,053 shares of Common Stock, resulting in net proceeds to the Company of approximately $42,000, after deducting offering costs and (ii) 20,960 shares of Series A Preferred Stock, resulting in net proceeds to the Company of approximately $503,000.

As of April 30, 2021, we have no funded debt and no obligations containing restrictive financial covenants.

We regularly evaluate opportunities to expand our business through the acquisition of other companies, businesses or product lines. If we were to make any such acquisitions, we believe they could generally be financed with a combination of cash on hand and cash flows from operations. However, should these sources of financing not be adequate, we may seek other sources of capital to fund future acquisitions. These additional sources of capital include bank credit facilities or the issuance of debt or equity securities.

We have determined that the undistributed earnings of foreign subsidiaries are not deemed indefinitely reinvested outside of the United States as of April 30, 2021. Furthermore, we have concluded that any deferred taxes with respect to the undistributed foreign earnings would be immaterial.

As of April 30, 2021, we had deposits in foreign banks equal to approximately $1.4 million all of which we believe could be distributed to the United States without adverse tax consequences. However, in certain cases the transfer of these funds may result in withholding taxes payable to foreign taxing authorities. These factors could limit our ability to pay cash dividends in the future.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

23

Critical Accounting Policies

Information regarding our critical accounting policies and estimates is included in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended January 31, 2021. There have been no material changes to our critical accounting policies and estimates during the three-month period ended April 30, 2021.

24

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk, which is the potential loss arising from adverse changes in market prices and rates. We have not entered, and do not intend to enter, into derivative financial instruments for hedging or speculative purposes.

Foreign Currency Risk

We operate in a number of foreign locations, which gives rise to risk from changes in foreign currency exchange rates. To the extent possible, we attempt to denominate our transactions in foreign locations in U.S. dollars. For those cases in which transactions are not denominated in U.S. dollars, we are exposed to risk from changes in exchange rates to the extent that non-U.S. dollar revenues exceed non-U.S. dollar expenses related to those transactions. Our non-U.S. dollar transactions are denominated primarily in British pounds, Canadian dollars, Singapore dollars and European Union euros. As a result of these transactions, we generally hold cash balances that are denominated in these foreign currencies. At April 30, 2021, our consolidated cash and cash equivalents included foreign currency denominated amounts equivalent to approximately $427,000 in U.S. dollars. A 10% increase in the U.S. dollar as compared to each of these currencies would result in a loss of approximately $43,000 in the U.S. dollar value of these deposits, while a 10% decrease would result in an equal amount of gain. We do not currently hold or issue foreign exchange contracts or other derivative instruments to hedge these exposures.

Interest Rate Risk

As of April 30, 2021, we have no interest-bearing bank debt on our balance sheet.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our principal executive officers and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Form 10-K. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officers and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Our principal executive officers and principal financial officer have concluded that our current disclosure controls and procedures were effective as of April 30, 2021 at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There was no change in our system of internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended April 30, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

25

PART II

Item 1. Legal Proceedings

From time to time, we are a party to legal proceedings arising in the ordinary course of business. We are not currently a party to any legal proceedings, individually or collectively, that we believe could have a material adverse effect on our results of operations or financial condition or is otherwise material.

Item 1A. Risk Factors

The risk factors included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2021 have not materially changed. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)Not applicable.

(b)Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item  5. Other Information

Not applicable.

Item 6. Exhibits

Exhibits

The exhibits marked with the cross symbol (†) are filed (or furnished in the case of Exhibit 32.1) with this Form 10-Q.

Exhibit Number	Document Description	Report or Registration Statement	SEC File or Registration Number	Exhibit Reference
2.1	Agreement and Plan of Merger dated as of August 3, 2020, by and between Mitcham Industries, Inc. and MIND Technology, Inc.	Incorporated by reference to MIND Technology, Inc.’s Current Report on Form 8-K, filed with the SEC on August 7, 2020.	001-13490	2.1
3.1	Amended and Restated Certificate of Incorporation of MIND Technology, Inc.	Incorporated by reference to MIND Technology, Inc.’s Current Report on Form 8-K, filed with the SEC on August 7, 2020.	001-13490	3.3
3.2	Amended and Restated Bylaws of MIND Technology, Inc.	Incorporated by reference to MIND Technology, Inc.’s Current Report on Form 8-K, filed with the SEC on August 7, 2020.	001-13490	3.4
3.3	Certificate of Designations, Preferences and Rights of MIND Technology, Inc. 9.00% Series A Cumulative Preferred Stock	Incorporated by reference to MIND Technology, Inc.’s Current Report on Form 8-K, filed with the SEC on August 7, 2020.	001-13490	3.5
3.4	Certificate of Amendment of Certificate of Designations, Preferences and Rights of MIND Technology, Inc. 9.00% Series A Cumulative Preferred Stock	Incorporated by reference to MIND Technology, Inc.’s Form 8-K filed with the SEC on September 25, 2020.	001-13490	3.1

26

3.5	Texas Certificate of Merger, effective as of August 3, 2020	Incorporated by reference to MIND Technology, Inc.’s Current Report on Form 8-K, filed with the SEC on August 7, 2020.	001-13490	3.1
3.6	Delaware Certificate of Merger, effective as of August 3, 2020	Incorporated by reference to MIND Technology, Inc.’s Current Report on Form 8-K, filed with the SEC on August 7, 2020.	001-13490	3.2
4.1	Form of Senior Indenture (including Form of Senior Note)	Incorporated by reference to Mitcham Industries, Inc.’s Registration Statement on Form S-3, filed with the SEC on March 18, 2011.	333-172935	4.1
4.2	Form of Subordinated Indenture (including form of Subordinated Note)	Incorporated by reference to Mitcham Industries, Inc.’s Registration Statement on Form S-3, filed with the SEC on March 18, 2011.	333-172935	4.2
31.1†	Certification of Guy Malden, Co-Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
31.2†	Certification of Robert P. Capps, Co-Chief Executive Officer and Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
32.1†	Certification of Guy Malden, Co-Chief Executive Officer, and Robert P. Capps, Co-Chief Executive Officer and Chief Financial Officer, under Section 906 of the Sarbanes Oxley Act of 2002, 18 U.S.C. § 1350
101.INS†	XBRL Instance Document
101.SCH†	XBRL Taxonomy Extension Schema Document
101.CAL†	XBRL Taxonomy Extension Calculation of Linkbase Document
101.DEF†	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB†	XBRL Taxonomy Extension Label Linkbase Document
101.PRE†	XBRL Taxonomy Extension Presentation Linkbase Document

27

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MIND TECHNOLOGY, INC.
Date: June 3, 2021	/s/ Robert P. Capps
	Robert P. Capps
	Co-Chief Executive Officer,
	Executive Vice President of Finance and Chief Financial Officer
	(Duly Authorized Officer)

28

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Guy Malden, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended April 30, 2021 of MIND Technology, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Guy Malden                            

Guy Malden

Co-Chief Executive Officer and Executive Vice President of Marine Systems

(Co-Principal Executive Officer)

June 3, 2021

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Robert P. Capps, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended April 30, 2021 of MIND Technology, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Robert P. Capps                                             

Robert P. Capps

Co-Chief Executive Officer, Executive Vice President of Finance and Chief Financial Officer

(Co-Principal Executive Officer and Principal Financial Officer)

June 3, 2021

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of MIND Technology, Inc. (the “Company”) on Form 10-Q for the quarterly period ended April 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Guy Malden, Co-Chief Executive Officer of the Company, and Robert P. Capps, Co-Chief Executive Officer and Chief Financial Officer of the Company, each hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Guy Malden                                             

Guy Malden

Co-Chief Executive Officer and Executive Vice President of Marine Systems

(Co-Principal Executive Officer)

June 3, 2021

/s/ Robert P. Capps                                      

Robert P. Capps

Co-Chief Executive Officer, Executive Vice President of Finance and Chief Financial Officer

(Co-Principal Executive Officer and Principal Financial Officer)

June 3, 2021

XML

Cover Page - shares	3 Months Ended
	Apr. 30, 2021	Jun. 02, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2021
Document Transition Report	false
Entity File Number	001-13490
Entity Registrant Name	MIND TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0210849
Entity Address, Address Line One	2002 Timberloch Place
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	The Woodlands
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77380
City Area Code	281
Local Phone Number	353-4475
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,773,742
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Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000926423
Current Fiscal Year End Date	--01-31
Common Stock - $0.01 par value per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock - $0.01 par value per share
Trading Symbol	MIND
Security Exchange Name	NASDAQ
Series A Preferred Stock - $1.00 par value per share
Document Information [Line Items]
Title of 12(b) Security	Series A Preferred Stock - $1.00 par value per share
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Security Exchange Name	NASDAQ

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
Current assets:
Cash and cash equivalents	$ 2,001	$ 4,611
Accounts receivable, net of allowance for doubtful accounts of $952 and $948 at April 30, 2021 and January 31, 2021, respectively	3,649	4,747
Inventories, net	12,169	11,453
Prepaid expenses and other current assets	1,555	1,659
Assets held for sale	4,086	4,321
Total current assets	23,460	26,791
Property and equipment, net	4,586	4,751
Operating lease right-of-use assets	1,138	1,471
Intangible assets, net	6,337	6,750
Total assets	35,521	39,763
Current liabilities:
Accounts payable	2,142	1,704
Deferred revenue	563	208
Accrued expenses and other current liabilities	3,038	2,912
Income taxes payable	902	1,041
Operating lease liabilities - current	665	1,008
Liabilities held for sale	972	963
Total current liabilities	8,282	7,836
Operating lease liabilities - non-current	473	463
Notes payable	0	850
Deferred tax liability	198	198
Total liabilities	8,953	9,347
Stockholders’ equity:
Preferred stock, $1.00 par value; 2,000 shares authorized; 1,059 and 1,038 shares issued and outstanding at April 30, 2021 and January 31, 2021, respectively	23,607	23,104
Common stock, $0.01 par value; 40,000 shares authorized; 15,704 and 15,681 shares issued at April 30, 2021 and January 31, 2021, respectively	157	157
Additional paid-in capital	128,403	128,241
Treasury stock, at cost (1,931 and 1,929 shares at April 30, 2021 and January 31, 2021, respectively)	(16,862)	(16,860)
Accumulated deficit	(104,438)	(99,870)
Accumulated other comprehensive loss	(4,299)	(4,356)
Total stockholders’ equity	26,568	30,416
Total liabilities and stockholders’ equity	$ 35,521	$ 39,763

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
ASSETS
Allowance for doubtful accounts, current	$ 952	$ 948
Stockholders’ equity:
Preferred stock, par value (in usd per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	1,059,000	1,038,000
Preferred stock, shares outstanding (in shares)	1,059,000	1,038,000
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	15,704,000	15,681,000
Treasury stock, shares (in shares)	1,931,000	1,929,000

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Revenues:
Total revenues	$ 4,194	$ 3,187
Cost of sales:
Total cost of sales	3,651	2,703
Gross profit	543	484
Operating expenses:
Selling, general and administrative	3,817	2,954
Research and development	853	410
Impairment of intangible assets	0	2,531
Depreciation and amortization	666	730
Total operating expenses	5,336	6,625
Operating loss	(4,793)	(6,141)
Other income:
Other, net	947	56
Total other income	947	56
Loss from continuing operations before income taxes	(3,846)	(6,085)
Benefit (provision) for income taxes	145	(342)
Loss from continuing operations	(3,701)	(6,427)
Loss from discontinued operations, net of income taxes	(283)	(215)
Net loss	(3,984)	(6,642)
Preferred stock dividends	(584)	(559)
Net loss attributable to common stockholders	$ (4,568)	$ (7,201)
Net loss per common share - Basic
Continuing operations (in usd per share)	$ (0.31)	$ (0.57)
Discontinued operations (in usd per share)	(0.02)	(0.02)
Net loss (in usd per share)	(0.33)	(0.59)
Net loss per common share - Diluted
Continuing operations (in usd per share)	(0.31)	(0.57)
Discontinued operations (in usd per share)	(0.02)	(0.02)
Net loss (in usd per share)	$ (0.33)	$ (0.59)
Shares used in computing net loss per common share:
Basic (in shares)	13,759	12,172
Diluted (in shares)	13,759	12,172
Revenue from Contract with Customer, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember
Cost, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember

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Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss attributable to common stockholders	$ (4,568)	$ (7,201)
Changes in cumulative translation adjustment	57	(131)
Comprehensive loss	$ (4,511)	$ (7,332)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Cash flows from operating activities:
Net loss	$ (3,984)	$ (6,642)
Adjustments to reconcile net loss to net cash used in operating activities:
PPP loan forgiveness	(850)	0
Depreciation and amortization	668	1,701
Stock-based compensation	121	230
Impairment of intangible assets	0	2,531
Recovery of doubtful accounts	(453)	0
Provision for inventory obsolescence	327	22
Gross profit from sale of lease pool equipment	0	(850)
Gross profit from sale of other equipment	(80)	0
Changes in:
Accounts receivable	1,602	3,728
Unbilled revenue	51	(9)
Inventories	(739)	(554)
Prepaid expenses and other current and long-term assets	(239)	201
Income taxes receivable and payable	(168)	424
Accounts payable, accrued expenses and other current liabilities	947	300
Deferred revenue	(10)	(153)
Net cash (used in) provided by operating activities	(2,807)	929
Cash flows from investing activities:
Purchases of seismic equipment held for lease	0	(110)
Purchases of property and equipment	(8)	(65)
Sale of used lease pool equipment	0	1,414
Sale of business, net of cash sold	187	0
Net cash provided by investing activities	179	1,239
Cash flows from financing activities:
Purchase of treasury stock	(2)	0
Net proceeds from preferred stock offering	503	0
Net proceeds from common stock offering	42	0
Preferred stock dividends	(576)	(559)
Net cash used in financing activities	(33)	(559)
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash	51	(138)
Net (decrease) increase in cash, cash equivalents and restricted cash	(2,610)	1,471
Cash, cash equivalents and restricted cash, beginning of period	4,611	3,234
Cash, cash equivalents and restricted cash, end of period	2,001	4,705
Supplemental cash flow information:
Interest paid	9	11
Income taxes paid	31	149
Purchases of seismic equipment held for lease in accounts payable at end of period	$ 0	$ 702

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss	Common Stock Including Additional Paid-In Capital
Beginning balances (in shares) at Jan. 31, 2020		14,097	994
Beginning balances at Jan. 31, 2020	$ 47,652	$ 141	$ 22,104	$ 123,964	$ (16,860)	$ (77,310)	$ (4,387)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,642)					(6,642)
Foreign currency translation	(131)						(131)
Preferred stock dividends	(559)					(559)
Stock-based compensation	230			230
Ending balances (in shares) at Apr. 30, 2020		14,097	994
Ending balances at Apr. 30, 2020	40,550	$ 141	$ 22,104	124,194	(16,860)	(84,511)	(4,518)
Beginning balances (in shares) at Jan. 31, 2021		15,681	1,038
Beginning balances at Jan. 31, 2021	30,416	$ 157	$ 23,104	128,241	(16,860)	(99,870)	(4,356)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,984)					(3,984)
Foreign currency translation	57						57
Restricted stock issued (in shares)		5
Restricted stock issued	11			11
Restricted stock forfeited for taxes	(2)				(2)
Stock offering (in shares)		18	21
Stock offering			$ 503	42				$ 42
Preferred stock dividends	(584)					(584)
Stock-based compensation	109			109
Ending balances (in shares) at Apr. 30, 2021		15,704	1,059
Ending balances at Apr. 30, 2021	$ 26,568	$ 157	$ 23,607	$ 128,403	$ (16,862)	$ (104,438)	$ (4,299)

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Organization

3 Months Ended

Apr. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

MIND Technology, Inc., a Delaware corporation (the “Company”), formerly Mitcham Industries, Inc., a Texas corporation, was incorporated in 1987. Effective August 3, 2020 the Company effectuated a reincorporation to the state of Delaware. Concurrent with the reincorporation the name of the Company was changed to MIND Technology, Inc. and the number of shares of common stock and preferred stock authorized for issuance was increased. See Note 15 - Corporate Restructuring, to the condensed consolidated financial statements.

The Company, through its wholly owned subsidiaries, Seamap Pte Ltd, MIND Maritime Acoustics, LLC (formerly Seamap USA, LLC), Seamap (Malaysia) Sdn Bhd and Seamap (UK) Ltd (collectively “Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in Singapore, Malaysia, the United Kingdom and the states of New Hampshire and Texas. Prior to July 31, 2020, the Company, through its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), and its branch operations in Colombia, provided full-service equipment leasing, sales and service to the seismic industry worldwide (the “Leasing Business”). Effective July 31, 2020, the Leasing Business has been classified as held for sale on the financial results reported as discontinued operations (see Note 3 – “Assets Held for Sale and Discontinued Operations” for additional details). All intercompany transactions and balances have been eliminated in consolidation.

The lingering impacts of the global pandemic and emerging supply chain disruptions have created uncertainty in the global economy which could have a material adverse effect on the Company’s business, financial position, results of operations and liquidity. In addition, the Company has a history of operating losses and has had negative cash from operating activities. However, the Company has no funded debt or obligations containing financial covenants, working capital of approximately $15.2 million, including cash of approximately $2.0 million, backlog of firm orders of approximately $11.0 million as of April 30, 2021, the ability, and plans, to reduce costs to maintain positive cash flow, additional equity available to raise further capital, and lease pool equipment being actively marketed for sale. Based on these factors, Management expects the Company to continue to meet its obligations as they arise over the next twelve months.

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Basis of Presentation

3 Months Ended

Apr. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The condensed consolidated balance sheet as of January 31, 2021 for the Company has been derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2021 (“fiscal 2021”). In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position as of April 30, 2021, the results of operations for the three months ended April 30, 2021 and 2020, the cash flows for the three months ended April 30, 2021 and 2020, and the statement of stockholders’ equity for the three months ended April 30, 2021 and 2020, have been included in these condensed consolidated financial statements. The foregoing interim results are not necessarily indicative of the results of operations to be expected for the full fiscal year ending January 31, 2022 (“fiscal 2022”).

We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. On the consolidated balance sheets, income taxes payable, not related to discontinued operations has been reclassified from “Current liabilities held for sale” to “Current income taxes payable.”

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Assets Held for Sale and Discontinued Operations

3 Months Ended

Apr. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale and Discontinued Operations

Assets Held for Sale and Discontinued OperationsOn July 27, 2020, the Board determined to exit the Leasing Business, which comprises essentially all operations of the Equipment Leasing segment. As a result, the assets, excluding cash, and liabilities of the Equipment Leasing segment are considered held for sale and the segment’s operations are reported as discontinued operations as of April 30, 2021 and for all comparative periods presented in these condensed consolidated financial statements. The Company originally anticipated selling the discontinued operations within twelve months from July 27, 2020, in multiple transactions, which may involve the sale of legal entities, assets, or a combination of both, but now anticipates completing the process within the next six months.

The assets reported as held for sale consist of the following:

	April 30, 2021		January 31, 2021
Current assets of discontinued operations:
Accounts receivable, net	1,310		1,668
Inventories, net	47		352
Prepaid expenses and other current assets	340		150
Seismic equipment lease pool and property and equipment, net	2,389		2,151
Total assets of discontinued operations	$	4,086	$	4,321

The liabilities reported as held for sale consist of the following:

	April 30, 2021		January 31, 2021
Current liabilities of discontinued operations:
Accounts payable	$	13	$	59
Deferred revenue	73		73
Accrued expenses and other current liabilities	915		831
Income taxes payable (receivable)	(29)		—
Total liabilities of discontinued operations	972		963

The results of operations from discontinued operations for the three months ended April 30, 2021 and 2020, consist of the following:

	For the Three Months Ended April 30,
	2021		2020
Revenues:
Revenue from discontinued operations	$	30	$	4,188
Cost of sales:
Cost of discontinued operations	373		2,484
Operating expenses:
Selling, general and administrative	342		1,700
Recovery of doubtful accounts	(443)		—
Depreciation and amortization	1		44
Total operating expenses	(100)		1,744
Operating loss	(243)		(40)
Other income (expenses)	(39)		3
Loss before income taxes	(282)		(37)
Provision for income taxes	(1)		(178)
Net loss	(283)		(215)

The significant operating and investing noncash items and capital expenditures related to discontinued operations are summarized below:

	For the Three Months Ended April 30,
	2021		2020
Depreciation and amortization	$	—	$	971
Gross profit from sale of lease pool equipment	$	—	$	(852)
Recovery of doubtful accounts	$	443	$	—
Purchase of seismic equipment held for lease	$	—	$	(110)
Sale of used lease pool equipment	$	—	$	1,414
Sale of assets held for sale	$	187	$	—

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New Accounting Pronouncements

3 Months Ended

Apr. 30, 2021

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. The Company adopted this ASU effective February 1, 2021, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company adopted this guidance effective February 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

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Revenue from Contracts with Customers

3 Months Ended

Apr. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition:

	Three Months Ended April 30,
	2021		2020
Revenue recognized at a point in time:	(in thousands)
Seamap	$	2,913	$	2,014
Klein	1,150		998
Total revenue recognized at a point in time	$	4,063	$	3,012
Revenue recognized over time:
Seamap	$	131	$	175
Total revenue recognized over time	131		175
Total revenue from contracts with customers	$	4,194	$	3,187

The revenue from products manufactured and sold by our Seamap and Klein businesses is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. Our Seamap business also provides Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA’s is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract, which is typically twelve months.

The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers:

	Three Months Ended April 30,
	2021		2020
	(in thousands)
United States	$	359	$	1,075
Europe, Russia & CIS	2,582		1,376
Middle East & Africa	14		76
Asia-Pacific	705		302
Canada & Latin America	534		358
Total revenue from contracts with customers	$	4,194	$	3,187

As of April 30, 2021, and January 31, 2020, contract assets and liabilities consisted of the following:

	April 30, 2021		January 31, 2021
Contract Assets:	(in thousands)
Unbilled revenue - current	$	136	$	85
Total unbilled revenue	$	136	$	85
Contract Liabilities:
Deferred revenue & customer deposits - current	$	681	$	691
Deferred revenue & customer deposits - non-current	—		—
Total deferred revenue & customer deposits	$	681	$	691

Considering the products manufactured and sold by our Seamap and Klein businesses and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a period of three to nine months.

Pursuant to our accounting policies and procedures related to revenue from contracts with customers, sales and transaction-based taxes are excluded from revenue. Also, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, we expense costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses.

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Balance Sheet - Continuing Operations

3 Months Ended

Apr. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet - Continuing Operations

Balance Sheet - Continuing Operations

	As of April 30, 2021						As of January 31, 2021
	Current		Long-term		Total		Current		Long-term		Total
Accounts receivable	$	4,601	$	—	$	4,601	$	5,695	$	—	$	5,695
Less allowance for doubtful accounts	(952)		—		(952)		(948)		—		(948)
Accounts receivable net of allowance for doubtful accounts	$	3,649	$	—	$	3,649	$	4,747	$	—	$	4,747

	April 30, 2021		January 31, 2021
	(in thousands)
Inventories:
Raw materials	$	7,276	$	6,905
Finished goods	3,823		3,466
Work in progress	2,453		2,445
	13,552		12,816
Less allowance for obsolescence	(1,383)		(1,363)
Total inventories, net	$	12,169	$	11,453

	April 30, 2021		January 31, 2021
	(in thousands)
Property and equipment:
Marine seismic service equipment	$	4,533	$	5,969
Land and buildings	4,384		4,354
Furniture and fixtures	9,776		9,750
Autos and trucks	491		491
	19,184		20,564
Accumulated depreciation and amortization	(14,598)		(15,813)
Total property and equipment, net	$	4,586	$	4,751

As of January 31, 2021, the Company completed an annual review of long-lived assets noting that the undiscounted future cash flows exceeded their carrying value and no impairment has been recorded. Since January 31, 2021, there have been no significant changes to the market, economic or legal environment in which the Company operates that would indicate additional impairment analysis is necessary as of April 30, 2021.

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Leases

3 Months Ended

Apr. 30, 2021

Leases [Abstract]

Leases

Leases

The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Hungary, Singapore, Malaysia, Colombia, United Kingdom and Canada. We negotiated the termination of our Colombia lease obligation during the current period.

Lease expense for the three months ended April 30, 2021 was approximately $309,000 and was recorded as a component of operating loss. Included in these costs was short-term lease expense of approximately $10,000 for the three months ended April 30, 2021.

Supplemental balance sheet information related to leases as of April 30, 2021 and January 31, 2021 were as follows (in thousands):

Lease	April 30, 2021		January 31, 2021
Assets
Operating lease assets	$	1,138	$	1,471
Liabilities
Operating lease liabilities	$	1,138	$	1,471
Classification of lease liabilities
Current liabilities	$	665	$	1,008
Non-current liabilities	473		463
Total Operating lease liabilities	$	1,138	$	1,471

Lease-term and discount rate details as of April 30, 2021 and January 31, 2021 were as follows:

Lease term and discount rate	April 30, 2021		January 31, 2021
Weighted average remaining lease term (years)
Operating leases	1.11		1.09
Weighted average discount rate:
Operating leases	9.36	%	10	%

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 (in thousands):

Lease	Three Months Ended April 30, 2021		Three Months Ended April 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(309)	$	(293)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	309	$	293

Maturities of lease liabilities at April 30, 2021 were as follows (in thousands):

	April 30, 2021
2022	$	665
2023	397
2024	102
2025	58
2026	24
Thereafter	—
Total payments under lease agreements	$	1,246
Less: imputed interest	(108)
Total lease liabilities	$	1,138

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Goodwill and Other Intangible Assets

3 Months Ended

Apr. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

	Weighted Average Life at 4/30/2021	April 30, 2021								January 31, 2021
		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount
Goodwill		$	7,060	$	—	$	(7,060)	$	—	$	7,060	$	—	$	(7,060)	$	—
Proprietary rights	7.0	$	7,784	$	(3,807)	$	—	$	3,977	$	7,781	$	(3,688)	$	—	$	4,093
Customer relationships	0.6	5,024		(4,677)		—		347		5,024		(4,513)		—		511
Patents	3.3	2,440		(1,590)		—		850		2,440		(1,528)		—		912
Trade name	5.1	894		(77)		(760)		57		894		(74)		(760)		60
Developed technology	4.7	1,430		(762)		—		668		1,430		(727)		—		703
Other	3.1	684		(246)		—		438		684		(213)		—		471
Amortizable intangible assets		$	18,256	$	(11,159)	$	(760)	$	6,337	$	18,253	$	(10,743)	$	(760)	$	6,750

As of January 31, 2021, the Company has recorded impairment expense equal to 100% of the gross carrying amount of goodwill. As a result, no further review of goodwill is required. On January 31, 2021, the Company completed an annual review of intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the carrying value of intangible assets was greater than its fair market value. During the three months ended April 30, 2021 there have been no substantive indicators of impairment.

Aggregate amortization expense was $412,000 and $460,000 for the three months ended April 30, 2021 and 2020, respectively. As of April 30, 2021, future estimated amortization expense related to amortizable intangible assets was estimated to be (in thousands):

For fiscal years ending January 31
2022	$	896
2023	1,125
2024	989
2025	795
2026	658
Thereafter	1,874
Total	$	6,337

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Notes Payable

3 Months Ended

Apr. 30, 2021

Debt Disclosure [Abstract]

Notes Payable

Notes Payable

On May 5, 2020, the Company, and its wholly owned subsidiary, Klein (collectively, the “Borrowers”), were granted loans (the “Loans”) from Bank of America, N.A. in the aggregate amount of approximately $1.6 million, pursuant to the Small Business Association's Paycheck Protection Program (the “PPP”), a component of the Coronavirus Aid, Relief, and Economic Security Act which was enacted on March 27, 2020.

The Loans, in the form of promissory notes (the “Notes”) dated May 1, 2020 issued by the Borrowers, mature on May 1, 2022 and bear interest at a rate of 1% per annum, payable monthly commencing on November 1, 2020. The Notes stipulate various restrictions customary with this type of transaction including representations, warranties, and covenants, in addition to events of default, breaches of representation and warranties or other provisions of the Notes. In the event of default, the Borrowers may become obligated to repay all amounts outstanding under the Notes. The Borrowers may prepay the Notes at any time prior to maturity with no prepayment penalties.

Under the terms of the PPP, funds from the Loans may only be used for payroll costs, rent, utilities and interest on other debt obligations incurred prior to February 15, 2020. In addition, certain amounts of the Loans may be forgiven if the funds are used to pay qualifying expenses.

In January 2021, the Loan granted to the Company in the amount of approximately $757,000 was forgiven resulting in other income of that amount. In February 2021, the Loan granted to Klein in the amount of approximately $850,000 was also forgiven, resulting in other income of that amount. As of April 30, 2021, the Company had no outstanding balance under the Loans.

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Income Taxes

3 Months Ended

Apr. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended April 30, 2021, the benefit for income taxes from continuing operations was approximately $145,000 on a pre-tax net loss from continuing operations of $3.8 million. For the three months ended April 30, 2020, the expense for income taxes from continuing operations was approximately $342,000 on a pre-tax net loss from continuing operations of $6.1 million. The variance between our actual provision and the expected provision based on the U.S. statutory rate is due primarily to recording valuation allowances against the increase in our deferred tax assets in the respective periods, permanent differences between book income and taxable income, and the effect of foreign withholding taxes.

The Company files U.S. federal and state income tax returns as well as separate returns for its foreign subsidiaries within their local jurisdictions. The Company's U.S. federal tax returns are subject to examination by the Internal Revenue Service for fiscal years ended January 31, 2017 through 2021. The Company’s tax returns may also be subject to examination by state and local tax authorities for fiscal years ended

January 31, 2015 through 2021. In addition, the Company's tax returns filed in foreign jurisdictions are generally subject to examination for the fiscal years ended January 31, 2015 through 2021.

The Company has determined that the undistributed earnings of foreign subsidiaries are not deemed to be indefinitely reinvested outside of the United States as of April 30, 2021. Furthermore, the Company has concluded that any deferred taxes with respect to the undistributed foreign earnings would be immaterial. Therefore, the Company has not recorded a deferred tax liability associated with the undistributed foreign earnings as of April 30, 2021.

For the three months ended April 30, 2021 and 2020, the Company did not recognize any tax expense or benefit related to uncertain tax positions.

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Earnings per Share

3 Months Ended

Apr. 30, 2021

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

Net income per basic common share is computed using the weighted average number of common shares outstanding during the period, excluding unvested restricted stock. Net income per diluted common share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect and from the assumed vesting of unvested shares of restricted stock.

The following table presents the calculation of basic and diluted weighted average common shares used in the earnings per share calculation:

	Three Months Ended April 30,
	2021	2020
	(in thousands)
Basic weighted average common shares outstanding	13,759	12,172
Stock options	94	—
Unvested restricted stock	27	4
Total weighted average common share equivalents	121	4
Diluted weighted average common shares outstanding	13,880	12,176

For the three and months ended April 30, 2021 and 2020, potentially dilutive common shares underlying stock options and unvested restricted stock were anti-dilutive and were therefore not considered in calculating diluted loss per share for those periods.

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Related Party Transaction

3 Months Ended

Apr. 30, 2021

Related Party Transactions [Abstract]

Related Party Transaction

Related Party Transaction

On October 7, 2016, the Company entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. (the “Agent”). On December 18, 2019, the Company and Agent entered into an Amended and Restated equity distribution agreement (the “1st Equity Distribution Agreement”). Pursuant to the 1st Equity Distribution Agreement, the Company may sell up to 500,000 shares of 9.00% Series A Cumulative Preferred Stock (the “Preferred Stock”), par value $1.00 per share through an at-the-market offering program (the “1st ATM Offering Program”) administered by the Agent. The Co-Chief Executive Officer and Co-President of the Agent is the Non-Executive Chairman of the Board. Under the 1st Equity Distribution Agreement, the Agent was entitled to compensation of up to 2.0% of the gross proceeds from the sale of Preferred Stock under the 1st ATM Offering Program. As of January 31, 2020, we had issued 994,046 shares which represent 100% of the Series A Preferred Stock available for sale through the 1st Equity Distribution Agreement.

In September 2020 we entered into a new equity distribution agreement (the “2nd Equity Distribution Agreement”) with the Agent with economic terms essentially identical to the initial agreement. Pursuant to the 2nd Equity Distribution Agreement, the Company may sell up to 500,000 shares of Preferred Stock and 5,000,000 shares of $0.01 par value common stock (“Common Stock”) through a new at-the-market offering program (the “2nd ATM Offering Program”).

During the three months ended April 30, 2021, the Company sold 20,960 shares of Series A Preferred Stock under the 2nd ATM Offering Program, resulting in net proceeds to the Company of approximately $503,000. Compensation to the Agent during this period was approximately $10,000, none of which was received by the Non-Executive Chairman of the Board.

During the three months ended April 30, 2021, the Company sold 18,053 shares of Common Stock under the 2nd ATM Offering Program, resulting in net proceeds to the Company of approximately $42,000. Compensation to the Agent during this period was approximately $1,000, none of which was received by the Non-Executive Chairman of the Board.

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Equity and Stock-Based Compensation	3 Months Ended
	Apr. 30, 2021
Equity [Abstract]
Equity and Stock-Based Compensation	Equity and Stock-Based CompensationDuring the three months ended April 30, 2021, the Board declared quarterly dividends of $0.5625 per share for our Preferred Stock. See Note 12 to our condensed consolidated financial statements. Total compensation expense recognized for stock-based awards granted under the Company’s equity incentive plan during the three months ended April 30, 2021 and 2020 was approximately $109,000 and $230,000, respectively.

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Segment Reporting	3 Months Ended
	Apr. 30, 2021
Segment Reporting [Abstract]
Segment Reporting	Segment ReportingWith the designation of the Equipment Leasing segment as discontinued operations as of July 31, 2020, the Company operates in one segment, Marine Technology Products. The Marine Technology Products segment is engaged in the design, manufacture and sale of state-of-the-art seismic and offshore telemetry systems. Manufacturing, support and sales facilities are maintained in the United Kingdom, Singapore, Malaysia and the states of New Hampshire and Texas.

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Corporate Restructuring

3 Months Ended

Apr. 30, 2021

Restructuring and Related Activities [Abstract]

Corporate Restructuring

Corporate Restructuring

On August 3, 2020, the Company, formerly Mitcham Industries, Inc., completed the reincorporation from the State of Texas to the State of Delaware, including a name change to MIND Technology, Inc. The change in legal domicile and company name were approved by the affirmative vote of the holders of more than two-thirds of the votes of the Company’s Common Stock and Preferred Stock, voting separately, at the Annual Meeting of Stockholders held on July 27, 2020. As part of the reincorporation merger, the stockholders approved an increase in the number of authorized shares of capital stock from 21,000,000 shares to 42,000,000 shares, consisting of (i) 40,000,000 shares of Common Stock (up from 20,000,000 shares), and (ii) 2,000,000 shares of Preferred Stock (up from 1,000,000 shares).

Pursuant to the terms of the reincorporation merger, each outstanding share of Common Stock and each share of Preferred Stock of Mitcham Industries, Inc., the Texas corporation, automatically converted into one share of Common Stock and one share of Series A Preferred Stock, respectively, of MIND Technology, Inc., the Delaware corporation. Stockholders who hold physical stock certificates are not required to, but may, exchange stock certificates as a result of the reincorporation. The Company’s Common Stock and Preferred Stock continued to trade on the NASDAQ Global Select Market under their ticker symbols, “MIND” and “MINDP”, respectively. The Company’s Common Stock was assigned a new CUSIP number of 602566 101 and the Company’s Preferred Stock was assigned a new CUSIP number of 602566 200.

No changes were made to the Board, management, business or operations of the Company as a result of the reincorporation. The Company’s corporate headquarters remains in Texas.

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Organization (Policies)

3 Months Ended

Apr. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

MIND Technology, Inc., a Delaware corporation (the “Company”), formerly Mitcham Industries, Inc., a Texas corporation, was incorporated in 1987. Effective August 3, 2020 the Company effectuated a reincorporation to the state of Delaware. Concurrent with the reincorporation the name of the Company was changed to MIND Technology, Inc. and the number of shares of common stock and preferred stock authorized for issuance was increased. See Note 15 - Corporate Restructuring, to the condensed consolidated financial statements.

The Company, through its wholly owned subsidiaries, Seamap Pte Ltd, MIND Maritime Acoustics, LLC (formerly Seamap USA, LLC), Seamap (Malaysia) Sdn Bhd and Seamap (UK) Ltd (collectively “Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in Singapore, Malaysia, the United Kingdom and the states of New Hampshire and Texas. Prior to July 31, 2020, the Company, through its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), and its branch operations in Colombia, provided full-service equipment leasing, sales and service to the seismic industry worldwide (the “Leasing Business”). Effective July 31, 2020, the Leasing Business has been classified as held for sale on the financial results reported as discontinued operations (see Note 3 – “Assets Held for Sale and Discontinued Operations” for additional details). All intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation

Basis of PresentationThe condensed consolidated balance sheet as of January 31, 2021 for the Company has been derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2021 (“fiscal 2021”). In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position as of April 30, 2021, the results of operations for the three months ended April 30, 2021 and 2020, the cash flows for the three months ended April 30, 2021 and 2020, and the statement of stockholders’ equity for the three months ended April 30, 2021 and 2020, have been included in these condensed consolidated financial statements. The foregoing interim results are not necessarily indicative of the results of operations to be expected for the full fiscal year ending January 31, 2022 (“fiscal 2022”).

Reclassification

We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. On the consolidated balance sheets, income taxes payable, not related to discontinued operations has been reclassified from “Current liabilities held for sale” to “Current income taxes payable.”

New Accounting Pronouncements

New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. The Company adopted this ASU effective February 1, 2021, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company adopted this guidance effective February 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

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Assets Held for Sale and Discontinued Operations (Tables)

3 Months Ended

Apr. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations, Including Balance Sheet, Income Statement, Cash Flow, and Additional Disclosures

The assets reported as held for sale consist of the following:

	April 30, 2021		January 31, 2021
Current assets of discontinued operations:
Accounts receivable, net	1,310		1,668
Inventories, net	47		352
Prepaid expenses and other current assets	340		150
Seismic equipment lease pool and property and equipment, net	2,389		2,151
Total assets of discontinued operations	$	4,086	$	4,321

The liabilities reported as held for sale consist of the following:

	April 30, 2021		January 31, 2021
Current liabilities of discontinued operations:
Accounts payable	$	13	$	59
Deferred revenue	73		73
Accrued expenses and other current liabilities	915		831
Income taxes payable (receivable)	(29)		—
Total liabilities of discontinued operations	972		963

The results of operations from discontinued operations for the three months ended April 30, 2021 and 2020, consist of the following:

	For the Three Months Ended April 30,
	2021		2020
Revenues:
Revenue from discontinued operations	$	30	$	4,188
Cost of sales:
Cost of discontinued operations	373		2,484
Operating expenses:
Selling, general and administrative	342		1,700
Recovery of doubtful accounts	(443)		—
Depreciation and amortization	1		44
Total operating expenses	(100)		1,744
Operating loss	(243)		(40)
Other income (expenses)	(39)		3
Loss before income taxes	(282)		(37)
Provision for income taxes	(1)		(178)
Net loss	(283)		(215)

The significant operating and investing noncash items and capital expenditures related to discontinued operations are summarized below:

	For the Three Months Ended April 30,
	2021		2020
Depreciation and amortization	$	—	$	971
Gross profit from sale of lease pool equipment	$	—	$	(852)
Recovery of doubtful accounts	$	443	$	—
Purchase of seismic equipment held for lease	$	—	$	(110)
Sale of used lease pool equipment	$	—	$	1,414
Sale of assets held for sale	$	187	$	—

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Revenue from Contracts with Customers (Tables)

3 Months Ended

Apr. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition:

	Three Months Ended April 30,
	2021		2020
Revenue recognized at a point in time:	(in thousands)
Seamap	$	2,913	$	2,014
Klein	1,150		998
Total revenue recognized at a point in time	$	4,063	$	3,012
Revenue recognized over time:
Seamap	$	131	$	175
Total revenue recognized over time	131		175
Total revenue from contracts with customers	$	4,194	$	3,187

The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers:

	Three Months Ended April 30,
	2021		2020
	(in thousands)
United States	$	359	$	1,075
Europe, Russia & CIS	2,582		1,376
Middle East & Africa	14		76
Asia-Pacific	705		302
Canada & Latin America	534		358
Total revenue from contracts with customers	$	4,194	$	3,187

Contract with Customer, Asset and Liability

As of April 30, 2021, and January 31, 2020, contract assets and liabilities consisted of the following:

	April 30, 2021		January 31, 2021
Contract Assets:	(in thousands)
Unbilled revenue - current	$	136	$	85
Total unbilled revenue	$	136	$	85
Contract Liabilities:
Deferred revenue & customer deposits - current	$	681	$	691
Deferred revenue & customer deposits - non-current	—		—
Total deferred revenue & customer deposits	$	681	$	691

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Balance Sheet - Continuing Operations (Tables)

3 Months Ended

Apr. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable

	As of April 30, 2021						As of January 31, 2021
	Current		Long-term		Total		Current		Long-term		Total
Accounts receivable	$	4,601	$	—	$	4,601	$	5,695	$	—	$	5,695
Less allowance for doubtful accounts	(952)		—		(952)		(948)		—		(948)
Accounts receivable net of allowance for doubtful accounts	$	3,649	$	—	$	3,649	$	4,747	$	—	$	4,747

Schedule of Inventories

	April 30, 2021		January 31, 2021
	(in thousands)
Inventories:
Raw materials	$	7,276	$	6,905
Finished goods	3,823		3,466
Work in progress	2,453		2,445
	13,552		12,816
Less allowance for obsolescence	(1,383)		(1,363)
Total inventories, net	$	12,169	$	11,453

Schedule of Seismic Equipment Lease Pool and Property and Equipment

	April 30, 2021		January 31, 2021
	(in thousands)
Property and equipment:
Marine seismic service equipment	$	4,533	$	5,969
Land and buildings	4,384		4,354
Furniture and fixtures	9,776		9,750
Autos and trucks	491		491
	19,184		20,564
Accumulated depreciation and amortization	(14,598)		(15,813)
Total property and equipment, net	$	4,586	$	4,751

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Leases (Tables)

3 Months Ended

Apr. 30, 2021

Leases [Abstract]

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases as of April 30, 2021 and January 31, 2021 were as follows (in thousands):

Lease	April 30, 2021		January 31, 2021
Assets
Operating lease assets	$	1,138	$	1,471
Liabilities
Operating lease liabilities	$	1,138	$	1,471
Classification of lease liabilities
Current liabilities	$	665	$	1,008
Non-current liabilities	473		463
Total Operating lease liabilities	$	1,138	$	1,471

Supplemental Cash Flow Information

Lease-term and discount rate details as of April 30, 2021 and January 31, 2021 were as follows:

Lease term and discount rate	April 30, 2021		January 31, 2021
Weighted average remaining lease term (years)
Operating leases	1.11		1.09
Weighted average discount rate:
Operating leases	9.36	%	10	%

Supplemental cash flow information related to leases was as follows (in thousands):

Lease	Three Months Ended April 30, 2021		Three Months Ended April 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(309)	$	(293)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	309	$	293

Maturities of Lease Liabilities

Maturities of lease liabilities at April 30, 2021 were as follows (in thousands):

	April 30, 2021
2022	$	665
2023	397
2024	102
2025	58
2026	24
Thereafter	—
Total payments under lease agreements	$	1,246
Less: imputed interest	(108)
Total lease liabilities	$	1,138

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Apr. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

	Weighted Average Life at 4/30/2021	April 30, 2021								January 31, 2021
		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount
Goodwill		$	7,060	$	—	$	(7,060)	$	—	$	7,060	$	—	$	(7,060)	$	—
Proprietary rights	7.0	$	7,784	$	(3,807)	$	—	$	3,977	$	7,781	$	(3,688)	$	—	$	4,093
Customer relationships	0.6	5,024		(4,677)		—		347		5,024		(4,513)		—		511
Patents	3.3	2,440		(1,590)		—		850		2,440		(1,528)		—		912
Trade name	5.1	894		(77)		(760)		57		894		(74)		(760)		60
Developed technology	4.7	1,430		(762)		—		668		1,430		(727)		—		703
Other	3.1	684		(246)		—		438		684		(213)		—		471
Amortizable intangible assets		$	18,256	$	(11,159)	$	(760)	$	6,337	$	18,253	$	(10,743)	$	(760)	$	6,750

Future Estimated Amortization Expense Related to Amortizable Intangible Assets

As of April 30, 2021, future estimated amortization expense related to amortizable intangible assets was estimated to be (in thousands):

For fiscal years ending January 31
2022	$	896
2023	1,125
2024	989
2025	795
2026	658
Thereafter	1,874
Total	$	6,337

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Earnings per Share (Tables)

3 Months Ended

Apr. 30, 2021

Earnings Per Share [Abstract]

Basic and Diluted Weighted Average Common Shares Used in Earnings Per Share Calculation

The following table presents the calculation of basic and diluted weighted average common shares used in the earnings per share calculation:

	Three Months Ended April 30,
	2021	2020
	(in thousands)
Basic weighted average common shares outstanding	13,759	12,172
Stock options	94	—
Unvested restricted stock	27	4
Total weighted average common share equivalents	121	4
Diluted weighted average common shares outstanding	13,880	12,176

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Organization (Details) $ in Millions	Apr. 30, 2021 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital	$ 15.2
Cash included in working capital	2.0
Backlog of firm orders	$ 11.0

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Assets Held for Sale and Discontinued Operations - Schedule of Discontinued Operations, Balance Sheet (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
Current assets of discontinued operations:
Total current assets of discontinued operations	$ 4,086	$ 4,321
Current liabilities of discontinued operations:
Total current liabilities of discontinued operations	972	963
Discontinued Operations, Held-for-sale
Current assets of discontinued operations:
Accounts receivable, net	1,310	1,668
Inventories, net	47	352
Prepaid expenses and other current assets	340	150
Seismic equipment lease pool and property and equipment, net	2,389	2,151
Total current assets of discontinued operations	4,086	4,321
Current liabilities of discontinued operations:
Accounts payable	13	59
Deferred revenue	73	73
Accrued expenses and other current liabilities	915	831
Income taxes payable (receivable)	(29)	0
Total current liabilities of discontinued operations	$ 972	$ 963

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Assets Held for Sale and Discontinued Operations - Schedule of Discontinued Operations, Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Recovery of doubtful accounts	$ (453)	$ 0
Net loss	(283)	(215)
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from discontinued operations	30	4,188
Cost of discontinued operations	373	2,484
Selling, general and administrative	342	1,700
Recovery of doubtful accounts	(443)	0
Depreciation and amortization	1	44
Total operating expenses	(100)	1,744
Operating loss	(243)	(40)
Other income (expenses)	(39)
Other income (expenses)		3
Loss before income taxes	(282)	(37)
Provision for income taxes	(1)	(178)
Net loss	$ (283)	$ (215)

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Assets Held for Sale and Discontinued Operations - Schedule of Discontinued Operations, Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Recovery of doubtful accounts	$ 453	$ 0
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization	0	971
Gross profit from sale of lease pool equipment	0	(852)
Recovery of doubtful accounts	443	0
Purchase of seismic equipment held for lease	0	(110)
Sale of used lease pool equipment	0	1,414
Sale of assets held for sale	$ 187	$ 0

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Revenue from Contracts with Customers - Revenue Disaggregation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 4,194	$ 3,187
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	4,063	3,012
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	131	175
Seamap | Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2,913	2,014
Seamap | Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	131	175
Klein | Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 1,150	$ 998

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Revenue from Contracts with Customers - Revenue Disaggregated by Geography (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 4,194	$ 3,187
United States
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	359	1,075
Europe, Russia & CIS
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2,582	1,376
Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	14	76
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	705	302
Canada & Latin America
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 534	$ 358

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Revenue from Contracts with Customers - Contract Assets And Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Jan. 31, 2021
Contract Assets:
Unbilled revenue - current	$ 136	$ 85
Total unbilled revenue	136	85
Contract Liabilities:
Deferred revenue & customer deposits - current	681	691
Deferred revenue & customer deposits - non-current	0	0
Total deferred revenue & customer deposits	$ 681	$ 691
Minimum
Contract With Customers [Line Items]
Contract with customers, turn over period (in months)	3 months
Maximum
Contract With Customers [Line Items]
Contract with customers, turn over period (in months)	9 months

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Balance Sheet - Continuing Operations - Accounts Receivable (Detail) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
Current
Accounts receivable	$ 4,601	$ 5,695
Less allowance for doubtful accounts	(952)	(948)
Accounts receivable net of allowance for doubtful accounts	3,649	4,747
Long-term
Accounts receivable	0	0
Less allowance for doubtful accounts	0	0
Accounts receivable net of allowance for doubtful accounts	0	0
Total
Accounts receivable	4,601	5,695
Less allowance for doubtful accounts	(952)	(948)
Accounts receivable net of allowance for doubtful accounts	$ 3,649	$ 4,747

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Balance Sheet - Continuing Operations - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
Inventories:
Raw materials	$ 7,276	$ 6,905
Finished goods	3,823	3,466
Work in progress	2,453	2,445
Cost of inventories	13,552	12,816
Less allowance for obsolescence	(1,383)	(1,363)
Total inventories, net	$ 12,169	$ 11,453

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Balance Sheet - Continuing Operations - Schedule of Seismic Equipment Lease Pool and Property and Equipment (Detail) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
Property and equipment:
Property and equipment	$ 19,184	$ 20,564
Accumulated depreciation and amortization	(14,598)	(15,813)
Total property and equipment, net	4,586	4,751
Marine seismic service equipment
Property and equipment:
Property and equipment	4,533	5,969
Land and buildings
Property and equipment:
Property and equipment	4,384	4,354
Furniture and fixtures
Property and equipment:
Property and equipment	9,776	9,750
Autos and trucks
Property and equipment:
Property and equipment	$ 491	$ 491

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Balance Sheet - Continuing Operations - Additional Information (Detail)	12 Months Ended
	Jan. 31, 2021 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Impairment of long-lived assets	$ 0

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Leases - Narrative (Details) $ in Thousands	3 Months Ended
	Apr. 30, 2021 USD ($)
Leases [Abstract]
Lease expense	$ 309
Short-term lease expense	$ 10

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Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
Assets
Operating lease right-of-use assets	$ 1,138	$ 1,471
Liabilities
Operating lease liabilities	1,138	1,471
Current liabilities	665	1,008
Non-current liabilities	473	463
Total Operating lease liabilities	$ 1,138	$ 1,471
Weighted average remaining lease term (years)
Operating leases	1 year 1 month 9 days	1 year 1 month 2 days
Weighted average discount rate:
Operating leases	9.36%	10.00%

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Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ (309)	$ (293)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$ 309	$ 293

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Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
Leases [Abstract]
2022	$ 665
2023	397
2024	102
2025	58
2026	24
Thereafter	0
Total payments under lease agreements	1,246
Less: imputed interest	(108)
Total lease liabilities	$ 1,138	$ 1,471

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Goodwill and Other Intangible Assets - Schedule of Net Carrying Amount (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Jan. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Gross Carrying Amount	$ 7,060	$ 7,060
Goodwill, Impairment	(7,060)	(7,060)
Goodwill, Net Carrying Amount	0	0
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	18,256	18,253
Accumulated Amortization	(11,159)	(10,743)
Impairment	(760)	(760)
Net Carrying Amount	$ 6,337	6,750
Proprietary rights
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	7 years
Gross Carrying Amount	$ 7,784	7,781
Accumulated Amortization	(3,807)	(3,688)
Net Carrying Amount	$ 3,977	4,093
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	7 months 6 days
Gross Carrying Amount	$ 5,024	5,024
Accumulated Amortization	(4,677)	(4,513)
Net Carrying Amount	$ 347	511
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	3 years 3 months 18 days
Gross Carrying Amount	$ 2,440	2,440
Accumulated Amortization	(1,590)	(1,528)
Net Carrying Amount	$ 850	912
Trade name
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	5 years 1 month 6 days
Gross Carrying Amount	$ 894	894
Accumulated Amortization	(77)	(74)
Impairment	(760)	(760)
Net Carrying Amount	$ 57	60
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	4 years 8 months 12 days
Gross Carrying Amount	$ 1,430	1,430
Accumulated Amortization	(762)	(727)
Net Carrying Amount	$ 668	703
Other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	3 years 1 month 6 days
Gross Carrying Amount	$ 684	684
Accumulated Amortization	(246)	(213)
Net Carrying Amount	$ 438	$ 471

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Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Jan. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment expense, percentage of gross carrying amount of goodwill			100.00%
Aggregate amortization expense	$ 412	$ 460

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Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Related to Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands	Apr. 30, 2021	Jan. 31, 2021
For fiscal years ending January 31
2022	$ 896
2023	1,125
2024	989
2025	795
2026	658
Thereafter	1,874
Net Carrying Amount	$ 6,337	$ 6,750

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Notes Payable (Details) - Paycheck Protection Program, CARES Act - USD ($)		1 Months Ended
	May 05, 2020	Feb. 28, 2021	Jan. 31, 2021	Apr. 30, 2021
Debt Instrument [Line Items]
Proceeds from PPP loan	$ 1,600,000
Interest rate (as a percent)	1.00%
Loan forgiveness			$ 757,000
Outstanding balance under the Loans				$ 0
Klein Associates Inc.
Debt Instrument [Line Items]
Loan forgiveness		$ 850,000

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (145,000)	$ 342,000
Pre-tax net loss	3,846,000	6,085,000
Deferred tax liability associated with the undistributed foreign earnings	0
Tax expense or benefit related to uncertain tax positions	$ 0	$ 0

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Earnings per Share - Basic and Diluted Weighted Average Common Shares Used in Earnings Per Share Calculation (Detail) - shares shares in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding	13,759	12,172
Stock options	94	0
Unvested restricted stock	27	4
Total weighted average common share equivalents	121	4
Diluted weighted average common shares outstanding	13,880	12,176

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Related Party Transaction - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2020	Apr. 30, 2021	Apr. 30, 2020	Jan. 31, 2020	Jan. 31, 2021	Sep. 30, 2020	Aug. 03, 2020	Aug. 02, 2020	Dec. 18, 2019
Related Party Transaction [Line Items]
Maximum number of preferred stock to be issued (in shares)		2,000,000			2,000,000		2,000,000	1,000,000
Preferred stock, par value (in usd per share)		$ 1.00			$ 1.00
Maximum number of common stock to be issued (in shares)		40,000,000			40,000,000		40,000,000	20,000,000
Common stock, par value (in usd per share)		$ 0.01			$ 0.01
Net proceeds from common stock offering		$ 42,000	$ 0
Ladenburg Thalmann & Co. Inc.
Related Party Transaction [Line Items]
Maximum number of common stock to be issued (in shares)						5,000,000
Common stock, par value (in usd per share)						$ 0.01
Series A Preferred Stock | Non-Executive Chairman
Related Party Transaction [Line Items]
Equity distribution compensation expenses		$ 0
Series A Preferred Stock | Ladenburg Thalmann & Co. Inc.
Related Party Transaction [Line Items]
Maximum number of preferred stock to be issued (in shares)						500,000			500,000
Preferred stock dividend rate	9.00%
Preferred stock, par value (in usd per share)									$ 1.00
Percentage of compensation fees to be paid	2.00%
Stock issued during period (in shares)	994,046	20,960
Preferred stock issued from at the market sale of stock program (as a percent)				100.00%
Net proceeds from preferred stock		$ 503,000
Equity distribution compensation expenses		10,000
Common Stock | Non-Executive Chairman
Related Party Transaction [Line Items]
Equity distribution compensation expenses		$ 0
Common Stock | Ladenburg Thalmann & Co. Inc.
Related Party Transaction [Line Items]
Stock issued during period (in shares)		18,053
Equity distribution compensation expenses		$ 1,000
Net proceeds from common stock offering		$ 42,000

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Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Equity [Abstract]
Quarterly dividends declared (in usd per share)	$ 0.5625
Compensation expense related to stock-based awards granted	$ 109	$ 230

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Segment Reporting - Additional Information (Details)	3 Months Ended
	Apr. 30, 2021 segment
Segment Reporting [Abstract]
Number of operating segments	1

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Corporate Restructuring (Details) - shares	Apr. 30, 2021	Jan. 31, 2021	Aug. 03, 2020	Aug. 02, 2020
Restructuring and Related Activities [Abstract]
Capital stock, shares authorized (in shares)			42,000,000	21,000,000
Common stock, shares authorized (in shares)	40,000,000	40,000,000	40,000,000	20,000,000
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000	2,000,000	1,000,000