Annual report pursuant to Section 13 and 15(d)

Leases

v3.23.1
Leases
12 Months Ended
Jan. 31, 2023
Leases [Abstract]  
Leases
11.
Leases

The Company leases office space under the terms of noncancelable operating leases that expire at various dates through November 2026. Certain operating lease agreements provide for an annual 2.75% escalation of the base rent. The Company is also responsible for operating expenses, which are classified as variable lease costs. Lease terms may include options to extend or terminate the lease, typically at the Company’s own discretion. Renewal options are regularly evaluated and the renewal period will be included in the lease term when exercise of the renewal option is considered reasonably certain. There are no active leases that have a renewal option that is reasonably certain of being exercised.

The Company holds leases that include both lease (e.g., payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs). As the Company has elected the practical expedient to group lease and non-lease components for all leases, these are accounted for as a single lease component. The Company's leases do not include any residual value guarantees or material restrictive covenants.

Lease expense for both operating and finance leases is recognized on a straight-line basis over the lease term and is recorded in operating expenses on the consolidated statements of operations. Interest expense incurred on finance lease liabilities is calculated using the effective interest method and is recorded in interest expense on the consolidated statements of operations.

The lease balances are located in the following positions on the consolidated balance sheet.

 

 

 

Balance Sheet Location

 

January 31, 2023

 

Assets

 

 

 

 

 

Operating

 

Deposits and other assets

 

$

1,885

 

Financing

 

Property and equipment, net

 

 

205

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Current

 

 

 

 

 

Operating

 

Other current liabilities

 

$

607

 

Financing

 

Other current liabilities

 

 

130

 

Non-current

 

 

 

 

 

Operating

 

Other long-term liabilities

 

 

2,047

 

Financing

 

Other long-term liabilities

 

 

81

 

Total lease costs for the fiscal year ended January 31, 2023 were:

 

 

 

 

Fiscal Year Ended

 

 

 

 

January 31, 2023

 

Operating lease cost

 

 

$

1,005

 

Short-term lease cost

 

 

 

2,147

 

Variable lease cost

 

 

 

36

 

Finance lease cost:

 

 

 

 

Amortization of right-of-use assets

 

 

 

92

 

Interest on lease liabilities

 

 

 

7

 

Total finance lease cost

 

 

$

99

 

The following table summarizes future scheduled lease payments as of January 31, 2023:

Fiscal year ending January 31,

 

 

Operating Leases

 

 

 

Finance Leases

 

2024

 

 

$

755

 

 

 

$

144

 

2025

 

 

 

775

 

 

 

 

48

 

2026

 

 

 

797

 

 

 

 

45

 

2027

 

 

 

658

 

 

 

 

-

 

2028

 

 

 

-

 

 

 

 

-

 

Total

 

 

 

2,985

 

 

 

 

237

 

Less: Imputed Interest

 

 

 

331

 

 

 

 

26

 

Present value of net lease payments

 

 

$

2,654

 

 

 

$

211

 

 

 

 

 

 

 

 

 

 

Lease liability, current portion

 

 

$

607

 

 

 

$

130

 

Lease liability, net of current portion

 

 

 

2,047

 

 

 

 

81

 

Total lease liability

 

 

$

2,654

 

 

 

$

211

 

Supplemental information related to operating and finance leases are as follows:

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

Operating cash flows from operating leases

 

 

$

1,178

 

Operating cash flows from finance leases

 

 

 

4

 

Financing cash flows from finance leases

 

 

 

98

 

 

 

 

$

1,280

 

Weighted average remaining lease term (in years)

 

 

 

 

Operating leases

 

 

 

3.83

 

Finance leases

 

 

 

2.09

 

Weighted average discount rate

 

 

 

 

Operating leases

 

 

 

6.36

%

Finance leases

 

 

 

10.10

%

Disclosures Related to Periods Prior to Adoption of the New Lease Standard

The Company recorded rent expense of $1,462 for the fiscal year ended January 31, 2022.

The minimum aggregate future obligations under noncancelable operating leases as of January 31, 2022 were as follows:

 

Fiscal Year ending January 31,

 

 

 

 

2023

 

 

$

1,025

 

2024

 

 

 

755

 

2025

 

 

 

775

 

2026

 

 

 

797

 

2027

 

 

 

658

 

Total

 

 

$

4,010

 

As the Company did not hold finance leases as of January 31, 2022, there were no future minimum lease payments under finance leases at that time.