Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

v3.22.1
Operating Leases
3 Months Ended
Apr. 30, 2022
Leases [Abstract]  
Operating Leases

6.

Operating Leases

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

 

The components of lease expense included in the condensed consolidated statements of operations and comprehensive loss are as follows:

 

 

 

For the Three Months

Ended April 30,

 

 

 

2022

 

 

2021

 

 

 

(Amounts in thousands)

 

Operating lease cost

 

$

143

 

 

$

283

 

Short term lease cost, net

 

 

4

 

 

 

5

 

Total lease cost

 

$

147

 

 

$

288

 

 

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

 

 

 

For the Three Months

Ended April 30,

 

 

 

2022

 

 

2021

 

 

 

(Amounts in thousands)

 

Cash paid for amounts included in the

measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

143

 

 

$

473

 

 

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

 

 

 

As of April 30, 2022

 

 

As of January 31, 2022

 

 

 

(Amounts in thousands)

 

Operating lease right-of-use assets

 

$

1,763

 

 

$

2,031

 

 

 

 

 

 

 

 

 

 

Current portion, operating lease liabilities

 

 

685

 

 

 

762

 

Operating lease liabilities, long term

 

 

1,147

 

 

 

1,361

 

Total operating lease liabilities

 

$

1,832

 

 

$

2,123

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (years)

 

 

2.8

 

 

 

3.0

 

Weighted average incremental borrowing rate

 

 

5.0

%

 

 

5.0

%

 

 

The current portion, operating lease liabilities is included as a component of accrued expenses in the condensed consolidated balance sheets.

 

Future minimum lease payments for operating leases, with initial or remaining terms in excess of one year as of April 30, 2022 are as follows:

 

 

 

Payments for

Operating Leases

 

For the Fiscal Years Ended January 31,

 

(Amounts in thousands)

 

2023

 

$

581

 

2024

 

 

710

 

2025

 

 

731

 

Total lease payments

 

 

2,022

 

Less interest

 

 

190

 

Total operating lease liabilities

 

$

1,832

 

 

In the first quarter of fiscal 2022, the Company entered into a sublease termination agreement (the “Termination Agreement”) with respect to its former headquarters in Waltham, Massachusetts. In connection to the Termination Agreement, the Company agreed to pay the sublandlord a total of $0.4 million in termination payments, of which approximately $0.3 million was paid during the three months ended April 30, 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 termination payments. The net $0.1 million loss on lease termination is reported as a component of severance and restructuring expense on the condensed 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.

Additionally, in fiscal 2022, the Company entered into two operating sublease agreements (collectively, the “Subleases”) with respect to part of its existing Poland facility lease (the “Head Lease”). The Company accounted for the Head Lease and the Subleases as separate contracts and there was 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 April 30, 2022. The Head Lease rent expense is presented net of sublease income and reported as a component of operating expenses on the condensed consolidated statements of operations and comprehensive loss. The Company recorded $44 thousand of sublease income for the three months ended April 30, 2022.