Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

v3.21.2
Operating Leases
9 Months Ended
Oct. 31, 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 October 31, 2021

 

 

For the Nine Months Ended October 31, 2021

 

 

 

(Amounts in thousands)

 

Operating lease cost

 

$

151

 

 

$

612

 

Short term lease cost, net

 

 

5

 

 

 

13

 

Total lease cost

 

$

156

 

 

$

625

 

 

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

 

 

 

For the Three Months Ended October 31,

 

 

For the Nine Months Ended October 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(Amounts in thousands)

 

 

(Amounts in thousands)

 

Cash paid for amounts included in the

measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

218

 

 

$

263

 

 

$

951

 

 

$

829

 

 

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

 

 

 

As of October 31, 2021

 

 

As of January 31, 2021

 

 

 

(Amounts in thousands)

 

Operating lease right-of-use assets

 

$

2,283

 

 

$

4,968

 

 

 

 

 

 

 

 

 

 

Current portion, operating lease liabilities

 

 

792

 

 

 

1,387

 

Operating lease liabilities, long term

 

 

1,590

 

 

 

4,070

 

Total operating lease liabilities

 

$

2,382

 

 

$

5,457

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (years)

 

 

3.2

 

 

 

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 October 31, 2021. Future minimum lease payments for operating leases, with initial or remaining terms in excess of one year at October 31, 2021, are as follows:

 

 

 

Payments for

Operating Leases

 

For the Fiscal Years Ended January 31,

 

(Amounts in thousands)

 

2022

 

$

213

 

2023

 

 

789

 

2024

 

 

778

 

2025

 

 

802

 

Total lease payments

 

 

2,582

 

Less interest

 

 

200

 

Total operating lease liabilities

 

$

2,382

 

 

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 paid the sublandlord termination payments of approximately $0.4 million for the nine months ending October 31, 2021. 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 nine months ended October 31, 2021. Prior to the execution of the Termination Agreement, the sublease had been scheduled to expire in February 2025.

In the third quarter of fiscal 2022, the Company entered into two operating sublease agreements (collectively, the “Subleases”) with respect to part of our existing Poland facility lease (the “Head Lease”). The Company has accounted for the Head Lease and the Subleases as separate contracts and there is no effect on the right-of-use asset or lease liability associated with the Head Lease. The Subleases are short term and have effective end dates of less than one year from October 31, 2021. The Head Lease rent expense is presented net of sublease income and reported as a component of operating expenses on the consolidated statements of operations and comprehensive loss. We recorded $32 thousand of sublease income for the three and nine months ended October 31, 2021.