7. Leases

 

The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Singapore, Malaysia and The United Kingdom.

 

Lease expense for the twelve months ended  January 31, 2026 and 2025 was approximately $930,000 and $860,000, respectively, and was recorded as a component of operating income.

 

Supplemental balance sheet information related to leases as of  January 31, 2026 and 2025 was as follows (in thousands):

 

  

As of January 31,

 

Lease

 

2026

  

2025

 

Assets

        

Operating lease right-of-use assets

 $1,092  $1,320 
         

Liabilities

        

Operating lease liabilities

 $1,092  $1,320 
         

Classification of lease liabilities

        

Current liabilities

 $686  $577 

Non-current liabilities

  406   743 

Total Operating lease liabilities

 $1,092  $1,320 

 

Lease-term and discount rate details as of  January 31, 2026 and 2025 were as follows:

 

  

As of January 31,

 

Lease term and discount rate

 

2026

  

2025

 

Weighted average remaining lease term (years)

        

Operating leases

  2.64   1.39 
         

Weighted average discount rate:

        

Operating leases

  15%  14%

 

Supplemental cash flow information related to leases on  January 31, 2026 and 2025 was as follows (in thousands):

 

  

As of January 31,

 

Lease

 

2026

  

2025

 

Cash paid for amounts included in the measurement of lease liabilities:

        

Operating cash flows from operating leases

 $(930) $(987)
         

Right-of-use assets obtained in exchange for lease liabilities:

        

Operating leases

 $950  $834 

 

Maturities of lease liabilities on  January 31, 2026 and 2025 were as follows (in thousands):

 

  

As of January 31,

 
  

2026

  

2025

 

2027

 $789  $718 

2028

  292   526 

2029

  115   275 

2030

  46   35 

2031

  22    

Thereafter

      

Total payments under lease agreements

 $1,264  $1,554 
         

Less: imputed interest

  (172)  (234)

Total lease liabilities

 $1,092  $1,320 

 

Historical Timeline

Fiscal YearFiled
2026Apr 20, 2026Showing above
2025Apr 25, 2025
2024Apr 30, 2024
2023May 1, 2023
2022Apr 29, 2022
2021Apr 16, 2021
2020Apr 28, 2020
2019Apr 5, 2019
2017Apr 7, 2017
2016Apr 7, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.