Note 10 - Leases

12 Months Ended

Jan. 31, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

10. Leases

The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Hungary, Singapore, Malaysia and United Kingdom. We negotiated the termination of our Colombia lease obligation during the current fiscal year and our lease obligation in Canada was terminated as of March 31, 2022.

Lease expense for the twelve months ended  January 31, 2022 and 2021 was approximately $1.2 million for each year, and was recorded as a component of operating loss. Included in these costs was short-term lease expense of approximately $36,000 and $20,000 for the twelve months ended January 31, 2022 and 2021, respectively.

Supplemental balance sheet information related to leases as of  January 31, 2022 and 2021 was as follows (in thousands):

	As of January 31,
Lease	2022		2021
Assets
Operating lease assets	$	1,835	$	1,471
Liabilities
Operating lease liabilities	$	1,835	$	1,471
Classification of lease liabilities
Current liabilities	$	869	$	1,008
Non-current liabilities		966		463
Total Operating lease liabilities	$	1,835	$	1,471

Lease-term and discount rate details as of  January 31, 2022 and 2021 were as follows:

	As of January 31,
Lease term and discount rate	2022			2021
Weighted average remaining lease term (years)
Operating leases		1.82			1.09
Weighted average discount rate:
Operating leases		13	%		10	%

The incremental borrowing rate was calculated using the Company’s weighted average cost of capital.

Supplemental cash flow information related to leases on  January 31, 2022 and 2021 was as follows (in thousands):

	As of January 31,
Lease	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(1,196	)	$	(1,157	)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—		$	—

Maturities of lease liabilities on  January 31, 2022 and 2021 were as follows (in thousands):

	As of January 31,
	2022			2021
2022	$	869		$	1,007
2023		547			421
2021		285			110
2025		211			58
2026		188			24
Thereafter		204			—
Total payments under lease agreements	$	2,304		$	1,620
Less: imputed interest		(469	)		(149	)
Total lease liabilities	$	1,835		$	1,471

Prior to July 31, 2020, the Company leased seismic equipment to customers under operating leases with non-cancelable terms of one year or less. These leases were generally renewable on a month-to-month basis. All taxes (other than income taxes) and assessments were the contractual responsibility of the lessee. To the extent that foreign taxes were not paid by the lessee, the relevant foreign taxing authorities might seek to collect such taxes from the Company. Under the terms of its lease agreements, any amounts paid by the Company to such foreign taxing authorities may be billed and collected from the lessee. The Company is not aware of any foreign tax obligations as of  January 31, 2022 and 2021 that are not reflected in the accompanying consolidated financial statements.

The Company leases its office and warehouse facilities in Canada, Texas, Singapore, United Kingdom, Hungary and Malaysia under operating leases. Our facilities lease in Canada was terminated as of March 31, 2022.