Leases

3 Months Ended

Apr. 30, 2026

As more fully described in the Annual Report on Form 10-K for the year ended January 31, 2026, the Company has operating leases on real property, equipment, and automobiles, expiring at various dates through fiscal year 2031. The Company has an operating lease for its corporate office and manufacturing and distribution facility located in Torrance, California, currently with a remaining lease term through September 2030.

The quantitative information regarding our leases is as follows:


	Three Months Ended
	4/30/2026			4/30/2025
	(In thousands, except lease term and discount rate)
Operating lease cost	$	2,312		$	2,358
Short-term lease cost	118			118
Sublease income	(10)			(10)
Variable lease cost	397			273
Total lease cost	$	2,817		$	2,739

Other operating lease information:
Cash paid for amounts included in the measurement of lease liabilities	$	2,432		$	1,638
Right-of-use assets obtained in exchange for new lease liabilities	$	—		$	237
Weighted-average remaining lease term (years)	4.3			5.2
Weighted-average discount rate	9.84		%	9.82		%

Minimum future lease payments for operating leases in effect as of April 30, 2026, are as follows:


	Operating Leases
For the year ending January 31,	(In thousands)
Remainder of 2027	$	7,346
2028	9,513
2029	9,656
2030	9,979
2031	6,863
Thereafter	—
Remaining balance of lease payments	43,357

Short-term lease liabilities	6,557
Long-term lease liabilities	28,392
Total lease liabilities	34,949

Difference between undiscounted cash flows and discounted cash flows	$	8,408

On July 23, 2024, the Company entered into a new lease agreement (the “Lease”) with Starboard Distribution Center, LLC which extended the Company’s tenancy at its 560,000 sq. ft. office, manufacturing and warehouse facility in Torrance, California. The Lease extended the tenancy for 65 months, covering the period from May 1, 2025 through September 30, 2030. Under the Lease, the monthly base rent was abated for the initial 5-month period from May 1, 2025 to September 30, 2025, then was set at $726,700 for October 1, 2025 through April 30, 2026, with subsequent increases of 3.5% every 12 months thereafter. The Lease also provides for a tenant improvement allowance of up to $1.7 million to be used by December 31, 2026. As of April 30, 2026, the Company has not drawn on the tenant improvement allowance. The Landlord has the right to terminate the Lease upon customary events of default.