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Note 7 - Leases

9 Months Ended

Oct. 31, 2021

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 fiscal year.

Lease expense for the three and nine months ended October 31, 2021 was approximately $374,000 and $974,000, respectively, and was recorded as a component of operating loss. Included in these costs was short-term lease expense of approximately $14,000 and $42,000, respectively, for the three and nine months ended October 31, 2021.

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

Lease	*October 31, 2021*		*January 31, 2021*
Assets
Operating lease assets	$	1,424	$	1,471

Liabilities
Operating lease liabilities	$	1,424	$	1,471

Classification of lease liabilities
Current liabilities	$	308	$	1,008
Non-current liabilities		1,116		463
Total Operating lease liabilities	$	1,424	$	1,471

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

Lease term and discount rate	*October 31, 2021*			*January 31, 2021*
Weighted average remaining lease term (years)
Operating leases		1.35			1.09

Weighted average discount rate:
Operating leases		9.17	%		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	*Nine Months Ended October 31, 2021*			*Nine Months Ended October 31, 2020*
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(974	)	$	(828	)

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	974		$	828

Maturities of lease liabilities at October 31, 2021 were as follows (in thousands):

	*October 31, 2021*
2022	$	308
2023		750
2024		346
2025		134
2026		24
Thereafter		—
Total payments under lease agreements	$	1,562

Less: imputed interest		(138	)
Total lease liabilities	$	1,424