v3.26.1
Leases
 12 Months Ended
Jan. 31, 2026
Leases [Abstract]  
Leases Leases
The Company’s leases consist of office space, manufacturing space and machinery and equipment. The Company determines if an arrangement contains a lease at inception. Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of lease payments.
The Company applies a portfolio approach for certain leases with similar characteristics, primarily related to finance leases, when it reasonably expects that the financial statement effects of applying the guidance to the portfolio would not differ materially from applying the guidance to individual leases. Operating lease liabilities are generally determined using the incremental borrowing rate applicable to the individual lease at the commencement date.
The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. Future obligations relating to the exercise of renewal options are included in the measurement if, based on the judgment of management, the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of the renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised.
Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient under ASC 842 "Leases."
The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred.
During the year ended January 31, 2025, the Company entered into the Fourth Amendment of Lease for its offices at 355 Murray Hill Parkway, East Rutherford, NJ. The amended lease has a termination date of January 31, 2030. The amended lease has monthly rent of approximately $10 thousand to $12 thousand. In accounting for the lease for the year ended January 31, 2025, the Company wrote off its existing ROU asset and lease liability of approximately $124 thousand and recognized a right of use asset of approximately $631 thousand.
During the year ended January 31, 2025, the Company amended and subsequently extended its lease for 25 Branca Road, East Rutherford, NJ twice. The first amended lease had a termination date of August 31, 2024. With the initial amendment of the lease, the Company wrote off approximately $897 thousand of the existing ROU asset and lease liability. On August 21, 2024, the Company amended its lease at 25 Branca Road. The amended lease has monthly rent of approximately $36 thousand until February 28, 2026, with a renewal option to extend the lease until August 31, 2029. The monthly rent during the renewal option ranges from approximately $38 thousand to approximately $42 thousand. As a result of this lease the Company recognized a ROU asset and a lease liability of approximately $615 thousand. In addition, on December 26, 2024, the Company amended the lease again with an effective date of February 1, 2025. This amended lease expanded the space available to the Company, has a monthly rent from approximately $73 thousand to approximately $84 thousand from February 1, 2025 to January 31, 2030, and required an initial direct payment of approximately $200 thousand. During the year ended January 31, 2026, the Company recognized a ROU asset and lease liability of approximately $4.2 million.
As part of the acquisition of the Crown 1 Business, the Company entered into two leases in Bayshore, New York for its manufacturing facility. The first lease has a monthly rent of approximately $49 thousand, increasing over time to approximately $52 thousand, until August, 2029. The lease also contains two five-year renewal options. The Company recognized an ROU asset and a corresponding lease liability of approximately $2.1 million. The second lease has a monthly rent of approximately $3 thousand, increasing over time to approximately $4 thousand, maturing in September, 2027. The Company recognized a ROU asset and a corresponding lease liability of approximately $80 thousand.
The components of lease costs were as follows (in thousands):
January 31, 2026January 31, 2025January 31, 2024
Finance Leases  
Depreciation of assets$334 $386 $257 
Interest on lease liabilities107 115 62 
Operating Leases1,874 709 572 
Total net lease cost$2,315 $1,210 $891 
Supplemental balance sheet information related to leases was as follows (in thousands):
January 31, 2026January 31, 2025
Operating Leases
Operating lease ROU assets$7,877 $3,376 
Current operating lease liabilities, included in current liabilities$1,690 $848 
Non-current operating lease liabilities, included in long-term liabilities6,204 2,600 
Total operating lease liabilities$7,894 $3,448 
Finance Leases
Property and equipment at cost$1,853 $2,551 
Accumulated depreciation(780)(919)
Property and equipment, net$1,073 $1,632 
Current obligations of finance lease liabilities, included in current liabilities$321 $345 
Finance leases, net of current obligations, included in long-term liabilities878 1,199 
Total finance lease liabilities$1,199 $1,544 
Supplemental cash flow and other information related to leases was as follows:
January 31, 2026January 31, 2025January 31, 2024
Cash paid for amounts included in the measurement of lease liabilities (in thousands)
Operating cash flows from operating leases$1,261 $(1,597)$340 
Financing cash flows from finance leases345 397 272 
ROU assets obtained in exchange for lease liabilities (in thousands)
Operating leases$6,357 $2,119 $- 
Finance leases— 511 1,270 
Weighted average remaining lease term (in years)
Operating leases4.155.326.57
Finance leases3.754.534.49
Weighted average discount rate:
Operating leases6.41%6.38%4.85%
Finance Leases8.00%7.74%6.74%
Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):
For the fiscal years endedFinance LeasesOperating LeasesTotal Maturities of Lease Liabilities
2027$406 $2,145 $2,551 
2028398 2,224 2,622 
2029302 2,252 2,554 
2030179 1,852 2,031 
2031111 283 394 
Thereafter6 236 242 
Total undiscounted future lease payments1,402 8,992 10,394 
Less: imputed interest(203)(1,098)(1,301)
Total present value of future lease liabilities$1,199 $7,894 $9,093 
Leases Leases
The Company’s leases consist of office space, manufacturing space and machinery and equipment. The Company determines if an arrangement contains a lease at inception. Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of lease payments.
The Company applies a portfolio approach for certain leases with similar characteristics, primarily related to finance leases, when it reasonably expects that the financial statement effects of applying the guidance to the portfolio would not differ materially from applying the guidance to individual leases. Operating lease liabilities are generally determined using the incremental borrowing rate applicable to the individual lease at the commencement date.
The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. Future obligations relating to the exercise of renewal options are included in the measurement if, based on the judgment of management, the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of the renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised.
Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient under ASC 842 "Leases."
The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred.
During the year ended January 31, 2025, the Company entered into the Fourth Amendment of Lease for its offices at 355 Murray Hill Parkway, East Rutherford, NJ. The amended lease has a termination date of January 31, 2030. The amended lease has monthly rent of approximately $10 thousand to $12 thousand. In accounting for the lease for the year ended January 31, 2025, the Company wrote off its existing ROU asset and lease liability of approximately $124 thousand and recognized a right of use asset of approximately $631 thousand.
During the year ended January 31, 2025, the Company amended and subsequently extended its lease for 25 Branca Road, East Rutherford, NJ twice. The first amended lease had a termination date of August 31, 2024. With the initial amendment of the lease, the Company wrote off approximately $897 thousand of the existing ROU asset and lease liability. On August 21, 2024, the Company amended its lease at 25 Branca Road. The amended lease has monthly rent of approximately $36 thousand until February 28, 2026, with a renewal option to extend the lease until August 31, 2029. The monthly rent during the renewal option ranges from approximately $38 thousand to approximately $42 thousand. As a result of this lease the Company recognized a ROU asset and a lease liability of approximately $615 thousand. In addition, on December 26, 2024, the Company amended the lease again with an effective date of February 1, 2025. This amended lease expanded the space available to the Company, has a monthly rent from approximately $73 thousand to approximately $84 thousand from February 1, 2025 to January 31, 2030, and required an initial direct payment of approximately $200 thousand. During the year ended January 31, 2026, the Company recognized a ROU asset and lease liability of approximately $4.2 million.
As part of the acquisition of the Crown 1 Business, the Company entered into two leases in Bayshore, New York for its manufacturing facility. The first lease has a monthly rent of approximately $49 thousand, increasing over time to approximately $52 thousand, until August, 2029. The lease also contains two five-year renewal options. The Company recognized an ROU asset and a corresponding lease liability of approximately $2.1 million. The second lease has a monthly rent of approximately $3 thousand, increasing over time to approximately $4 thousand, maturing in September, 2027. The Company recognized a ROU asset and a corresponding lease liability of approximately $80 thousand.
The components of lease costs were as follows (in thousands):
January 31, 2026January 31, 2025January 31, 2024
Finance Leases  
Depreciation of assets$334 $386 $257 
Interest on lease liabilities107 115 62 
Operating Leases1,874 709 572 
Total net lease cost$2,315 $1,210 $891 
Supplemental balance sheet information related to leases was as follows (in thousands):
January 31, 2026January 31, 2025
Operating Leases
Operating lease ROU assets$7,877 $3,376 
Current operating lease liabilities, included in current liabilities$1,690 $848 
Non-current operating lease liabilities, included in long-term liabilities6,204 2,600 
Total operating lease liabilities$7,894 $3,448 
Finance Leases
Property and equipment at cost$1,853 $2,551 
Accumulated depreciation(780)(919)
Property and equipment, net$1,073 $1,632 
Current obligations of finance lease liabilities, included in current liabilities$321 $345 
Finance leases, net of current obligations, included in long-term liabilities878 1,199 
Total finance lease liabilities$1,199 $1,544 
Supplemental cash flow and other information related to leases was as follows:
January 31, 2026January 31, 2025January 31, 2024
Cash paid for amounts included in the measurement of lease liabilities (in thousands)
Operating cash flows from operating leases$1,261 $(1,597)$340 
Financing cash flows from finance leases345 397 272 
ROU assets obtained in exchange for lease liabilities (in thousands)
Operating leases$6,357 $2,119 $- 
Finance leases— 511 1,270 
Weighted average remaining lease term (in years)
Operating leases4.155.326.57
Finance leases3.754.534.49
Weighted average discount rate:
Operating leases6.41%6.38%4.85%
Finance Leases8.00%7.74%6.74%
Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):
For the fiscal years endedFinance LeasesOperating LeasesTotal Maturities of Lease Liabilities
2027$406 $2,145 $2,551 
2028398 2,224 2,622 
2029302 2,252 2,554 
2030179 1,852 2,031 
2031111 283 394 
Thereafter6 236 242 
Total undiscounted future lease payments1,402 8,992 10,394 
Less: imputed interest(203)(1,098)(1,301)
Total present value of future lease liabilities$1,199 $7,894 $9,093