Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

v3.21.1
Operating Leases
3 Months Ended
Apr. 30, 2021
Leases [Abstract]  
Operating Leases

7.

Operating Leases

The Company has operating leases for facilities and equipment expiring at various dates through 2025.  

 

The components of lease expense are as follows:

 

 

 

For the Three Months Ended April 30,

 

 

 

2021

 

 

2020

 

 

 

(Amounts in thousands)

 

Operating lease cost

 

$

283

 

 

$

322

 

Short term lease cost, net

 

 

5

 

 

 

31

 

Total lease cost

 

$

288

 

 

$

353

 

 

 

Supplemental cash flow information related to the Company’s operating leases was as follows:

 

 

 

For the Three Months Ended April 30,

 

 

 

2021

 

 

2020

 

 

 

(Amounts in thousands)

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

473

 

 

$

322

 

 

Supplemental balance sheet information related to the Company's operating leases was as follows:

 

 

 

As of April 30, 2021

 

 

As of January 31, 2021

 

 

 

(Amounts in thousands)

 

Operating lease right-of-use assets

 

$

2,707

 

 

$

4,968

 

 

 

 

 

 

 

 

 

 

Current portion, operating lease liabilities

 

 

866

 

 

 

1,387

 

Operating lease liabilities, long term

 

 

1,997

 

 

 

4,070

 

Total operating lease liabilities

 

$

2,863

 

 

$

5,457

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (years)

 

 

3.7

 

 

 

4.0

 

Weighted average incremental borrowing rate

 

 

5.0

%

 

 

5.0

%

 

The current portion, operating lease liabilities is included in the balance of accrued expenses at April 30, 2021. Rent payments for continuing operations were approximately $0.4 million for the three months ended April 30, 2021. Future minimum lease payments for operating leases, with initial or remaining terms in excess of one year at April 30, 2021, are as follows:

 

 

 

Payments for

Operating Leases

 

For the Fiscal Years Ended January 31,

 

(Amounts in thousands)

 

2022

 

$

663

 

2023

 

 

823

 

2024

 

 

812

 

2025

 

 

838

 

Total lease payments

 

 

3,136

 

Less interest

 

 

273

 

Total operating lease liabilities

 

$

2,863

 

 

In the first quarter of fiscal 2022, we entered into the Termination Agreement which terminated the sublease with respect to our former headquarters in Waltham, Massachusetts, effective March 21, 2021. In connection with the early termination of the sublease, the Company is to pay the sublandlord a termination payment of approximately $0.4 million, of which $0.3 million was paid during the three months ended April 30, 2021, and the remaining $0.1 million was paid subsequent to quarter end. The Company also wrote off all related operating lease right-of-use assets and liabilities as of the termination date, resulting in a $0.3 million non-cash gain, which partially offset the loss on the termination payments. The net $0.1 million loss on lease termination is reported as a component of severance and restructuring expense on the consolidated statements of operations and comprehensive loss for the three months ended April 30, 2021. Prior to the execution of the Termination Agreement, the sublease had been scheduled to expire in February 2025.