Cover
Cover - USD ($) | 12 Months Ended | ||
Jan. 31, 2024 | Apr. 23, 2024 | Jul. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --01-31 | ||
Document Period End Date | Jan. 31, 2024 | ||
Document Transition Report | false | ||
Entity Registrant Name | MAMA'S CREATIONS, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity File Number | 001-40597 | ||
Entity Tax Identification Number | 27-0607116 | ||
Entity Address, Address Line One | 25 Branca Road | ||
Entity Address, City or Town | East Rutherford | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07073 | ||
City Area Code | (201) | ||
Local Phone Number | 531-1212 | ||
Title of 12(b) Security | Common Stock, par value $0.00001 | ||
Trading Symbol | MAMA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 103,917,549 | ||
Entity Common Stock, Shares Outstanding | 37,263,096 | ||
Documents Incorporated by Reference | The information called for by Part III will be incorporated by reference from the Registrant's definitive Proxy Statement for its Annual Meeting of Stockholders to be filed pursuant to Regulation 14A or will be included in an amendment to this Form 10-K. | ||
Entity Central Index Key | 0001520358 | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Firm ID | 89 |
Auditor Name | Rosenberg Rich Baker Berman, P.A. |
Auditor Location | Somerset, New Jersey |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 11,022 | $ 4,378 |
Accounts receivable, net | 7,859 | 6,832 |
Inventories, net | 3,310 | 3,636 |
Prepaid expenses and other current assets | 1,375 | 828 |
Total current assets | 23,566 | 15,674 |
Property, plant, and equipment, net | 4,436 | 3,423 |
Intangibles, net | 4,979 | 1,503 |
Goodwill | 8,633 | 8,633 |
Operating lease right of use assets, net | 2,889 | 3,237 |
Deferred tax asset | 503 | 718 |
Equity method investment | 0 | 1,343 |
Security Deposits | 95 | 54 |
Total Assets | 45,101 | 34,585 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 12,425 | 9,063 |
Term loan, net of debt discount of $38 and $60, respectively | 1,514 | 1,492 |
Operating leases liability | 434 | 392 |
Finance leases payable | 367 | 182 |
Promissory notes – related parties | 1,950 | 750 |
Total current liabilities | 16,690 | 11,879 |
Line of credit | 0 | 890 |
Operating leases liability – net of current | 2,515 | 2,897 |
Finance leases payable – net of current | 1,062 | 249 |
Promissory notes – related parties, net of current | 2,250 | 1,500 |
Term loan – net of current | 3,003 | 4,655 |
Total long-term liabilities | 8,830 | 10,191 |
Total Liabilities | 25,520 | 22,070 |
Commitments and contingencies (Note 9) | ||
Stockholders’ Equity: | ||
Common stock, $0.00001 par value; 250,000,000 shares authorized; 37,488,239 and 36,317,857 shares issued as of January 31, 2024 and January 31, 2023, respectively, 37,258,239 and 36,087,857 shares outstanding as of January 31, 2024 and January 31, 2023, respectively | 0 | 0 |
Additional paid in capital | 23,278 | 22,724 |
Accumulated deficit | (3,547) | (10,059) |
Less: Treasury stock, 230,000 shares at cost | (150) | (150) |
Total Stockholders’ Equity | 19,581 | 12,515 |
Total Liabilities and Stockholders’ Equity | 45,101 | 34,585 |
Series A Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock value | 0 | 0 |
Series B Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock value | 0 | 0 |
Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock value | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Debt discount | $ 38 | $ 60 |
Preferred stock par value (in dollars per share) | $ 0.00001 | |
Preferred stock authorized (in shares) | 20,000,000 | |
Common stock par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock issued (in shares) | 37,488,239 | 36,317,857 |
Common stock outstanding (in shares) | 37,258,239 | 36,087,857 |
Treasury stock (in shares) | 230,000 | 230,000 |
Series A Preferred Stock | ||
Preferred stock par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock authorized (in shares) | 120,000 | 120,000 |
Preferred stock issued (in shares) | 23,400 | 23,400 |
Preferred stock outstanding (in shares) | 0 | 0 |
Series B Preferred Stock | ||
Preferred stock par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock authorized (in shares) | 200,000 | 200,000 |
Preferred stock issued (in shares) | 0 | 54,600 |
Preferred stock outstanding (in shares) | 0 | 54,600 |
Preferred Stock | ||
Preferred stock par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock authorized (in shares) | 19,680,000 | 19,680,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Income Statement [Abstract] | ||
Sales-net of slotting fees and discounts | $ 103,284 | $ 93,188 |
Costs of sales | 72,951 | 73,770 |
Gross profit | 30,333 | 19,418 |
Operating expenses: | ||
Research and development | 414 | 135 |
Selling, general and administrative | 21,029 | 16,460 |
Total operating expenses | 21,443 | 16,595 |
Income from operations | 8,890 | 2,823 |
Other income (expenses) | ||
Interest, net | (549) | (634) |
Amortization of debt discount | (22) | (22) |
Other income | 27 | 3 |
Total other expenses | (544) | (653) |
Net income before income tax provision and income from equity method investment | 8,346 | 2,170 |
Income from equity method investment | 223 | 143 |
Income tax provision | (2,008) | (9) |
Net income | 6,561 | 2,304 |
Less: series B preferred dividends | (49) | (34) |
Net income available to common stockholders | $ 6,512 | $ 2,270 |
Net income per common share | ||
basic (in dollars per share) | $ 0.18 | $ 0.06 |
diluted (in dollars per share) | $ 0.17 | $ 0.06 |
Weighted average common shares outstanding | ||
basic (in shares) | 36,814,162 | 36,093,858 |
diluted (shares) | 38,381,407 | 37,313,178 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Series A Preferred Stock | Series B Preferred Stock | Preferred Stock Series A Preferred Stock | Preferred Stock Series B Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance, preferred stock (in shares) at Jan. 31, 2022 | 0 | 0 | |||||||
Beginning balance, common stock (in shares) at Jan. 31, 2022 | 35,759,000 | ||||||||
Beginning balance, treasury stock (in shares) at Jan. 31, 2022 | (230,000) | ||||||||
Beginning balance at Jan. 31, 2022 | $ 8,109 | $ 0 | $ 0 | $ 0 | $ (150) | $ 20,588 | $ (12,329) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | $ 110 | 110 | |||||||
Stock issued for the exercise of options (in shares) | 130,000 | 57,000 | |||||||
Stock issued for the exercise of options | $ 26 | 26 | |||||||
Stock issued for the acquisition of equity investment (in shares) | 502,000 | ||||||||
Stock issued for the acquisition of equity investment | 700 | 700 | |||||||
Issuance of Preferred B Shares, net of issuance costs (in shares) | 55,000 | 55,000 | |||||||
Issuance of Preferred B Shares, net of issuance costs | 1,300 | $ 1,300 | 1,300 | ||||||
Series B Preferred dividend | (34) | (34) | |||||||
Net income | $ 2,304 | 2,304 | |||||||
Ending balance, preferred stock (in shares) at Jan. 31, 2023 | 0 | 54,600 | 0 | 55,000 | |||||
Ending balance, common stock (in shares) at Jan. 31, 2023 | 36,087,857 | 36,318,000 | |||||||
Ending balance, treasury stock (in shares) at Jan. 31, 2023 | (230,000) | (230,000) | |||||||
Ending balance at Jan. 31, 2023 | $ 12,515 | $ 0 | $ 0 | $ 0 | $ (150) | 22,724 | (10,059) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock based compensation (in shares) | 138,000 | ||||||||
Stock-based compensation | 486 | 486 | |||||||
Stock issued for the exercise of options and warrants (in shares) | 213,000 | ||||||||
Stock issued for the exercise of options and warrants | $ 68 | 68 | |||||||
Stock issued for the exercise of options (in shares) | 232,500 | ||||||||
Conversion of Series B preferred stock (in shares) | 55,000 | 819,000 | |||||||
Series B Preferred dividend | $ (49) | (49) | |||||||
Net income | $ 6,561 | 6,561 | |||||||
Ending balance, preferred stock (in shares) at Jan. 31, 2024 | 0 | 0 | 0 | 0 | |||||
Ending balance, common stock (in shares) at Jan. 31, 2024 | 37,258,239 | 37,488,000 | |||||||
Ending balance, treasury stock (in shares) at Jan. 31, 2024 | (230,000) | (230,000) | |||||||
Ending balance at Jan. 31, 2024 | $ 19,581 | $ 0 | $ 0 | $ 0 | $ (150) | $ 23,278 | $ (3,547) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,561 | $ 2,304 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,043 | 920 |
Provision for credit losses | (140) | 233 |
Amortization of debt discount | 22 | 22 |
Amortization of right of use assets | 348 | 360 |
Amortization of intangibles | 1,080 | 482 |
Stock-based compensation | 436 | 110 |
Allowance for obsolete inventory | 63 | 0 |
Change in deferred tax asset | 215 | (269) |
Income from equity method investment | (223) | (143) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,392 | 563 |
Inventories | 263 | (745) |
Prepaid expenses | (540) | (174) |
Security deposits | (35) | (2) |
Accounts payable and accrued expenses | 476 | 2,191 |
Operating lease liability | (340) | (343) |
Net Cash Provided by Operating Activities | 11,621 | 5,509 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash paid for fixed assets | (786) | (593) |
Cash paid for acquisition/investment in Chef Inspirational Foods, LLC, net | (646) | (500) |
Net Cash (Used in) Investing Activities | (1,432) | (1,093) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from series b preferred stock offering | 0 | 1,365 |
Payment of stock offering costs | 0 | (66) |
Cash paid for financing fees | 0 | (27) |
(Repayment) borrowings of line of credit, net | (890) | 125 |
Repayment of finance lease obligations | (272) | (235) |
Payment of Series B Preferred dividends | (49) | (34) |
Proceeds from exercise of options | 68 | 26 |
Net Cash (Used in) Financing Activities | (3,545) | (889) |
Net Increase in Cash | 6,644 | 3,527 |
Cash and cash equivalents - Beginning of Period | 4,378 | 851 |
Cash and cash equivalents - End of Period | 11,022 | 4,378 |
SUPPLEMENTARY CASH FLOW INFORMATION: | ||
Income taxes | 1,620 | 32 |
Interest | 654 | 634 |
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Finance lease asset additions | 1,270 | 72 |
Related party loan to finance acquisition | 2,700 | 0 |
Non-cash consideration paid in common stock for equity method investment | 0 | 700 |
Non-cash deposits on prepaid additions | 0 | 385 |
Settlement of liability in common stock | 50 | 0 |
Nonrelated Party | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of term loan | (1,652) | (1,293) |
Related Party | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of term loan | $ (750) | $ (750) |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Jan. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations Mama's Creations, Inc. (together with its subsidiaries, the “Company”), (formerly known as MamaMancini's Holdings, Inc. and Mascot Properties, Inc.) was organized on July 22, 2009 as a Nevada corporation. The Company has a year-end of January 31. Our subsidiary MamaMancini’s Inc. (“MamaMancinis”) is a marketer, manufacturer and distributor of beef and turkey meatballs with sauce, grilled, roasted and breaded chicken, sausage & peppers, and other similar meats and sauces. In addition, the Company continues to diversify its product line by introducing new products such as ready to serve meals, single-size pasta bowls, bulk deli, and packaged refrigerated protein products. MamaMancini's products were submitted to the United States Department of Agriculture (the “USDA”) and approved as all natural. The USDA defines all natural as a product that contains no artificial ingredients, coloring ingredients or chemical preservatives and is minimally processed. Our Subsidiary T&L Acquisition Corp. is a premier gourmet food manufacturer based in New York. T&L Acquisition Corp. DBA T&L Creative Salads (“T&L”) and Olive Branch (“OB”), offer a full line of foods for retail food chains and club stores, delis, bagel stores, caterers and provision distributors. T&L uses high-quality meats, seafood and vegetables, prepared to meet the standards set forth by the USDA and the Food and Drug Administration ("FDA"). Olive Branch concentrates on selling olives, olive mixes, and savory products to a limited number of large retail customers, primarily in pre-packaged containers. On June 28, 2022, the Company acquired a 24% minority interest in Chef Inspirational Foods, LLC (“CIF”), a leading developer, innovator, marketer and sales company selling prepared foods, for an investment of $1.2 million. The investment consists of $500 thousand in cash and $700 thousand in the Company’s common stock. The acquisition of the interest in CIF was accounted for under the equity method of accounting for investments up until the Company acquired the remaining interest of CIF. On June 28, 2023, the Company completed the acquisition of the remaining 76% of CIF, in accordance with the terms of the Membership Interest Purchase Agreement dated June 28, 2023 by and among the Company, Siegel Suffolk Family, LLC, and R&I Loeb Family, LLC (the “Sellers”) for approximately $3.7 million , including approximately $1.0 million in cash at closing and a $2.7 million promissory note (the "CIF Acquisition"). The promissory note requires a principal payment of $1.2 million in cash on the first anniversary of the closing date, and a payment of $1.5 million in common stock of the Company on the second anniversary of the closing date. The following presents the unaudited results of operations for the pe riod June 28, 2022 ( minority interest acquisition date) through January 31, 2023 and from February 1, 2023 through June 28, 2023 (CIF Acquisition date) of CIF (in thousands). For the Period For the Period Revenues $ 13,721 $ 18,238 Net income $ 931 $ 598 Name Change On July 31, 2023, the Company filed an amendment to the Articles of Incorporation with the Secretary of State of the State of Nevada to change the Company’s name from “MamaMancini’s Holdings, Inc.” to “Mama’s Creations, Inc.” (the “Name Change”). The Name Change, which was approved by the Company’s stockholders at its annual meeting on July 31, 2023, did not alter the voting powers or relative rights of the Company Common Stock, reflects the evolution of the Company from its origins as a home style, old world Italian food company to a "one stop shop" including all-natural specialty prepared refrigerated foods for sale in retailers around the country. On July 31, 2023, the Company also amended and restated its Amended and Restated Bylaws, solely to reflect the name change (as amended, the “Second Amended and Restated Bylaws”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries as of the reporting period ending dates and for the reporting periods. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior years have been reclassified to conform to the current year presentation. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumption s impact, among others, the following: allowance for credit losses, valuation of the acquisition of the remaining interest of CIF (which was accounted for as an asset acquisition as substantially all of the fair value is concentrated in customer relationships) , the fair value of stock based compensation, inventory reserves, impairment of goodwill and intangible assets, and estimates for unrealized returns, discounts, and other allowances that are netted against revenue. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the consolidated financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates. Risks and Uncertainties The Company operates in an industry that is subject to intense competition and changes in consumer demand. The Company’s operations are subject to significant risk and uncertainties including financial and operational risks including the potential risk of business failure. The Company has experienced, and in the future expects to continue to experience, variability in sales and earnings. The factors expected to contribute to this variability include, among others, (i) the cyclical nature of the grocery industry, (ii) general economic conditions in the various local markets in which the Company competes, including a potential general downturn in the economy, and (iii) the volatility of prices pertaining to food and beverages in connection with the Company’s distribution of the product. These factors, among others, make it difficult to project the Company’s operating results on a consistent basis. Segment Reporting For the years ended January 31, 2024 and 2023, t he Company was managed as a single operating segment. The Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information on an aggregate basis for purposes of allocating resources and assessing financial performance, as well as for making strategic operational decisions and managing the organization. As such, the Company has one reportable segment. Additionally, all of the Company’s assets are maintained in the United States. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. The majority of the Company’s cash and cash equivalents are held at one financial institution, which at January 31, 2024, exceeds insured amounts. The Company believes it mitigates such risk by having this cash held by a major financial institution. Accounts Receivable and Allowance for Credit Losses Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company generally does not require collateral to support customer receivables. Estimated product returns are immaterial. Management assesses the collectability of outstanding customer invoices, and maintains an allowance resulting from the expected non-collection of customer receivables. In estimating this reserve, management considers factors such as historical collection experience, customer creditworthiness, specific customer risk, and current and expected general economic conditions. Customer balances are written off after all collection efforts are exhausted. As of January 31, 2024 and January 31, 2023, the reserve for uncollectible accounts was approximately $93 thousand and $233 thousand, respectively. For the years ended January 31, 2024 and January 31, 2023 the Company wrote off approximately $140 thousand and $0 respectively, against the allowance for credit losses established. Inventories The Company values its inventory at the lower of cost or net realizable value (“NRV”). NRV is defined as estimated selling prices less costs of completion, disposal, and transportation. The cost of inventory is determined on the first-in, first-out basis. The cost of finished goods inventories includes ingredients, direct labor, freight-in for ingredients, and indirect production and overhead costs. The Company monitors its inventory to identify excess or obsolete items on hand. The Company reviews inventory quantities on-hand and records a provision for excess and obsolete inventory based primarily on selling prices, indications from customers based upon current price negotiations and purchase orders. In addition, and as necessary, specific reserves for future known or anticipated events may be established. As of January 31, 2024 and January 31, 2023, the reserve for obsolete inventory was approximately $95 thousand and $32 thousand, respectively. Inventories by major category are as follows (in thousands): January 31, 2024 January 31, 2023 Raw materials and packaging $ 1,159 $ 1,883 Work in process 237 99 Finished goods 1,914 1,654 Total $ 3,310 3,636 Property and Equipment Property and equipment are recorded at cost net of depreciation. Depreciation expense is computed using straight-line methods over the estimated useful lives. Asset lives for financial statement reporting of depreciation are: Machinery and equipment 2-7 years Furniture and fixtures 3 - 5 years Leasehold improvements * (*) Amortized on a straight-line basis over the term of the lease or the estimated useful lives, whichever period is shorter. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the consolidated statements of operations. The Company reviews the recoverability of property and equipment when circumstances indicate that the carrying value of an asset or asset class may not be recoverable. Indicators of impairment could include, among other factors, significant changes in the business environment, the planned closure of a facility, or deterioration in operating cash flows. Considerable management judgment is necessary to evaluate the impact of operating changes and to estimate future cash flows. Expenditures for repairs and maintenance which do not substantially improve or extend the useful life of an asset are expensed as incurred. Goodwill and Other Intangible Assets Goodwill Goodwill is the excess of the consideration paid for a business over the fair value of the identifiable net assets acquired. Goodwill and other indefinite lived intangible assets are not amortized. Instead, these assets are reviewed at least annually for impairment. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. However, the Company may elect to perform the quantitative goodwill impairment test even if no indications of a potential impairment exist. When performing its quantitative annual goodwill impairment test the Company is comparing the fair value with its carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the fair value; however, the loss recognized would not exceed the total amount of goodwill. Additionally, the Company considers income tax effects from any tax-deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The fair value is estimated using discounted cash flow methodologies, as well as considering third party market value indicators. The Company’s use of a discounted cash flow methodology includes estimates of future revenue based upon budgets and projections. The Company also develops estimates for future levels of gross and operating profits and projected capital expenditures. The Company’s methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. Calculating the fair value requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such impairments could be material. As of January 31, 2024, there were no impairment losses recognized for goodwill. Other Intangibles Other intangibles consist of trademarks, trade names and customer relationships. Intangible asset lives for financial statement reporting of amortization are: Tradenames and trademarks 3 years Customer relationships 4 - 5 years Fair Value of Financial Instruments Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The carrying value of the Company’s short-term financial instruments, such as cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value due to the immediate or short-term maturity of these instruments. The interest rate on the Company’s line of credit and notes payable has a variable component, which is reflective of the market for such instruments at any given date, and as such the carrying value this debt value approximates its fair value. Research and Development Research and development is expensed as incurred. Research and development expenses for the years ended January 31, 2024 and 2023 were approximately $414 thousand and $135 thousand, respectively. Revenue Recognition The Company recognizes revenue in accordance with FASB Topic 606, Revenue from Contracts with Customers (Topic 606) . The Company’s sales are primarily generated from the sale of finished products to customers. Revenue is recognized when the performance obligation is satisfied, and the promised goods have been transferred. Control transfers when the product is shipped or delivered based upon applicable shipping terms. For each contract, the Company considers the transfer of product to be the performance obligation. Although some payment terms may be extended, generally the Company’s payment terms are approximately 15- 30 days. Accordingly, there are no significant financing components to consider when determining the transaction price. The Company elected to treat shipping and handling activities as fulfillment activities, and the related costs are recorded as selling expenses in selling, general and administrative expenses on the Consolidated Statements of Operations. The Company promotes its products with trade incentives and promotions. These programs include discounts, slotting fees, coupons, rebates, in-store display incentives and volume-based incentives. The trade incentives and promotions are recorded as a reduction to the transaction price based on amounts estimated as being due to customers at the end of the period. The Company derives these estimates based on historical experience. The Company does not receive a distinct service in relation to the trade incentives and promotions. The Company’s contracts are all short term in nature, therefore there are no unsatisfied performance obligations requiring disclosure as of January 31, 2024. Expenses such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows (in thousands): For the Years Ended January 31, 2024 January 31, 2023 Gross Sales $ 106,104 $ 95,420 Less: Slotting, Discounts, and Allowances 2,820 2,232 Net Sales $ 103,284 $ 93,188 Disaggregation of Revenue from Contracts with Customers. The following table disaggregates gross revenue by significant geographic area for the years ended January 31, 2024 and 2023 (in thousands): For the Years Ended January 31, 2024 January 31, 2023 Northeast $ 37,189 $ 36,846 Southeast 30,183 28,306 Midwest 18,609 15,243 West 20,123 15,025 Total gross revenue $ 106,104 $ 95,420 Cost of Sales Cost of sales represents costs related to the production and manufacturing of the Company’s products. Advertising Costs incurred for producing and communicating advertising for the Company are charged to operations as incurred. Producing and communicating advertising expenses for the years ended January 31, 2024 and 2023 were approximately $1.2 million and $693 thousand, respectively. Stock-Based Compensation The Company provides compensation benefits in the form of performance stock awards, restricted stock units, stock options, and warrants. The cost of the stock-based compensation is recorded at fair value on the date of grant and expensed in our consolidated statement of operations over the requisite service period. Performance stock awards are granted to certain executive officers. Each performance stock award entitles the participant to earn shares of common stock upon the attainment of certain market conditions and certain performance goals over the applicable performance period. The recognition of the compensation expense for the performance stock awards is based upon the probable outcome of the market condition and performance conditions based on the fair value of the award on the date of grant. To determine the value of PSUs with market conditions for stock-based compensation purposes, the Company used the Monte Carlo simulation valuation model. For each path, the PSUs payoff is calculated based on the contractual terms, whereas the fair value of the PSUs is calculated as the average present value of all modeled payoffs. The determination of the grant date fair value of PSUs issued is affected by a number of variables and subjective assumptions, including (i) the fair value of the Company’s common stock of $1.17 and $1.40, (ii) the expected common stock price volatility over the expected life of the award of 85.7% and 87.0%, (iii) the term of the award of 5 years and 5 years, (iv) risk-free interest rate of 3.7% and 3.4%, (v) the expected dividend yield of 0% and 0%. Forfeitures are recognized when they occur. There were no performance stock units that vested in the year ended January 31, 2024. The Company's performance against the defined goals are re-evaluated on a quarterly basis throughout the performance period and the recognition of the compensation expense is adjusted for subsequent changes in the estimated or actual outcome. The Company values stock options and warrants using the Black-Scholes option pricing model. Grants of share-based payment awards issued to non-employees for services rendered have been recorded at the fair value of the share-based payment, which is the more readily determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service. For the year ended January 31, 2024 and 2023, when computing fair value of stock options issued, the Company has considered the following variables: January 31, 2024 January 31, 2023 Risk-free interest rate N/A 2.8 % Expected life of grants N/A 6.5 years Expected volatility of underlying stock N/A 85.7 % Dividends N/A 0 The expected option term is computed using the “simplified method” for “plain vanilla” options as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The expected stock price volatility for the Company’s stock options was estimated using the historical volatilities of the Company’s common stock. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. The Company values Restricted Stock Units ("RSUs") based on the closing price of the Company's common stock on the date the grant is issued and recognizes the expense related to this value on a straight line basis over the vesting term. For the year ended January 31, 2024, the Company issued 19,960 shares valued at approximately $50 thousand to certain employees as compensation. Earnings Per Share Basic net income or loss per share attributable to common stockholders excludes dilution and is computed by dividing net income attributable to common stockholders during the period by the weighted average number of common shares outstanding during the period. Diluted net income or loss per share reflects potential dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period, which is increased by the number of additional common shares that would have been outstanding if the potential common shares had been issued. However, if the effect of any additional securities are anti-dilutive (i.e., resulting in a higher net income per share or lower net loss per share), they are excluded from the dilutive net income computation. The dilutive effect of stock options, warrants, and restricted stock is calculated using the treasury-stock method and the dilutive effect of the Series B Preferred stock is calculated using the if-converted method. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share (in thousands). For the Years Ended January 31, 2024 January 31, 2023 Numerator: Net income attributable to common stockholders $ 6,512 2,270 Effect of dilutive securities: 49 34 Diluted net income $ 6,561 $ 2,304 Denominator: Weighted average common shares outstanding - basic 36,814 36,094 Dilutive securities (a): Series B Preferred — 819 Options 64 355 Performance Stock Units 1,195 — Restricted Stock 308 45 Weighted average common shares outstanding and assumed conversion – diluted 38,381 37,313 Basic net income per common share $ 0.18 $ 0.06 Diluted net income per common share $ 0.17 $ 0.06 (a) - Anti-dilutive securities excluded: Options — 150 Warrants — 14 Income Taxes Income taxes are provided in accordance with ASC 740, “ Accounting for Income Taxes ”. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the period of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets are adjusted for the effects of changes in tax laws and rates on the date of enactment. As of January 31, 2024 and January 31, 2023, the Company recognized a deferred tax asset of approximately $503 thousand and $718 thousand, respectively, which is included in other long-term liabilities or other long-term assets on the consolidated balance sheets. The Company regularly evaluates the need for a valuation allowance related to the deferred tax asset. Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification and makes targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. This guidance will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We do not expect the adoption to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2022, including any interim impairment tests within those annual periods, with early application permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2022, we elected to early adopt ASU 2017-04, and the adoption had no impact on our consolidated financial statements. In March 2023, the FASB issued ASU No. 2023-02, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investment Tax Credit Structures Using the Proportional Amortization Method." The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This guidance will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We do not expect the adoption to have a material impact on our consolidated financial statements. In October 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-06, Disclosure Improvements: Amendments - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. The FASB issued the standard to introduce changes to US GAAP that originate in either SEC Regulation S-X or S-K, which are rules about the form and content of financial reports. The provisions of the standard are contingent when the SEC removes the related disclosure provisions from Regulation S-X and S-K. The company does not expect the provisions of the standard to have a material impact on the Company's financial statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendment is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption ASU No. 2023-07 will have to the financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in the ASU address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendment is effective retrospectively for fiscal years beginning after December 15, 2024, on a prospective basis, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption ASU No. 2023-09 will have to the financial statements and related disclosures. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment: Property and equipment on January 31, 2024 and January 31, 2023 are as follows (in thousands): January 31, 2024 January 31, 2023 Machinery and Equipment $ 4,437 $ 5,387 Furniture and Fixtures 252 $ 285 Leasehold Improvements 2,956 $ 3,480 7,645 $ 9,152 Less: Accumulated Depreciation 3,209 $ 5,729 Total $ 4,436 $ 3,423 |
Intangibles, net
Intangibles, net | 12 Months Ended |
Jan. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles, net | Intangibles, net Intangibles, net consisted of the following at January 31, 2024 (in thousands): Gross Accumulated Net Carrying Weighted Customer relationships $ 6,418 $ (1,463) $ 4,955 3.29 Tradename and trademarks $ 79 $ (55) $ 24 0.91 $ 6,497 $ (1,518) $ 4,979 Intangibles, net consisted of the following at January 31, 2023 (in thousands): Gross Accumulated Net Carrying Weighted Customer relationships $ 1,862 $ (409) $ 1,453 3.41 Tradename and trademarks $ 79 $ (29) $ 50 1.91 $ 1,941 $ (438) $ 1,503 Amortization expense for the years ended January 31, 2024 and January 31, 2023 was approximately $1.1 million and $482 thousand, respectively. We expect the estimated aggregate amortization expense for each of the five succeeding fiscal years to be as follows (in thousands): 2025 $ 1,539 2026 $ 1,513 2027 $ 1,465 2028 $ 462 Total $ 4,979 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Promissory Note – Related Party Upon consummation of the acquisition of T&L in December 2021, the Company executed a $3 million promissory note with the sellers. The promissory note requires annual principal payments of $750 thousand payable on each anniversary of the closing, together with accrued interest at a rate of three and one-half (3.5%) per annum. As of January 31, 2024 and January 31, 2023, the outstanding balance under the note was $1.5 million and $2.25 million, respectively. For the year ended January 31, 2024 and January 31, 2023 interest expense for this note was approximately $77 thousand and $102 thousand respectively. As of January 31, 2024 and January 31, 2023, accrued interest was approximately $5 thousand and $7 thousand, respectively. Lease – Related Party The Company leases a facility in Farmingdale, NY from 148 Allen Blvd LLC for production and distribution of T&L and Olive Branch products. 148 Allen Blvd LLC is owned by Anthony Morello, Jr., President of T&L and various individuals related to Mr. Morello. This lease term is through November 30, 2031 with the option to extend the lease for two additional 10 year terms with base rent of approximately $20 thousand per month through December 31, 2026, increasing after that date to approximately $24 thousand through the end of the initial le ase term. The exercise of optional renewal is uncertain and therefore excluded from the calculation of the right of use asset. Rent expense and other ancillary charges pursuant to the lease for the year ended January 31, 2024 and January 31, 2023 was $343 thousand and $262 thousand, respectivel y. Chef Inspirational Foods, LLC As noted above in Note 1, the Company acquired a 24% minority interest in Chef Inspirational Foods, LLC (“CIF”) on June 28, 2022 and acquired the remaining interest on June 28, 2023 . For the period from February 1, 2023 to June 28, 2023 the Company recorded sales to CIF of approximately $10.9 million. For the period from June 28, 2022 to January 31, 2023 the Company recorded sales to CIF of approximately $14.7 million. During the years ended January 31, 2024 and January 31, 2023 , the Company recorded commission expenses and consulting services expenses of approximately $267 thousand and $424 thousand. As of January 31, 2023, the Company had receivables of approximately $1 million . |
Loan and Security Agreement
Loan and Security Agreement | 12 Months Ended |
Jan. 31, 2024 | |
Loan And Security Agreements | |
Loan and Security Agreement | Loan and Security Agreement M&T Bank The Company has a working capital line of credit with M&T Bank for a maximum principal amount of $5.5 million . On July 18, 2023, the Company extended the maturity of the working capital line from June 30, 2024 to October 31, 2025. In addition, effective December 4, 2023, the Company amended the line of credit to change the rate at which interest accrues on the outstanding balance. Effective December 4, 2023 the principal outstanding bears interest at a variable rate per annum based on the Company’s Senior Funded Debt/EBITDA Ratio (as defined in the Agreement) established with respect to the Borrower as of the date of any advance under the Loan as follows: if the Senior Funded Debt/EBITDA ratio is: (i) greater than 2.25, 3.25 percentage point(s) above the applicable one-day (i.e. overnight) SOFR (as defined); (ii) greater than 1.50 but less than 2.25, 2.75 percentage points above the one-day SOFR; (iii) less than or equal to 1.50, 2.25 percentage points above the one-day SOFR. The facility is supported by a first priority security interest in all of the Company’s business assets and is further subject to various affirmative and negative financial covenants. The Company was in compliance with the covenants as of January 31, 2024 and January 31, 2023. Advances under the line of credit are limited to eighty percent (80%) of eligible accounts receivable (which is subject to an agreed limitation and is further subject to certain asset concentration provisions) and fifty percent (50%) of eligible inventory (which is subject to an agreed dollar limitation). All advances under the line of credit are due upon maturity. The outstanding balance on the line of credit was $0 and $890 thousand as of January 31, 2024 and January 31, 2023, respectively. During the years ended January 31, 2024 and 2023, the Company incurred interest of approximately $47 thousand and $132 thousand to M&T Bank for the line of credit agreement, respectively. On December 29, 2021, the Company entered into a loan with M&T Bank for the original principal amount of $7.5 million payable in equal monthly principal installments over a 60-month amortization period (the “Acquisition Note”). The Maturity Date of the Acquisition Note is January 17, 2027. The Acquisition Note was amended effective December 4, 2023 to change the rate at which interest accrues. Effective December 4, 2023 the interest rate was amended to be based on the Senior Funded Debt/EBITDA Ratio (as defined in the Acquisition Note. If the Senior Funded Debt/EBITDA ratio is: (i) greater than 2.25, 3.50 percentage point(s) above the applicable Variable Loan Rate; (ii) greater than 1.50 but less than or equal to 2.25, 3.0 percentage points of the applicable Variable Loan Rate; or (iii) less than or equal to 1.50, 2.5 percentage points above the applicable Variable Loan Rate; provided that in all events the rate shall not be less than the recited percentage point margin over 0%. As of January 31, 2024, the outstanding balance and unamortized discount of the Acquisition Note was approximately $4.6 million and $38 thousand, respectively. As of January 31, 2023, the outstanding balance and unamortized discount of the Acquisition Note was approximately $6.2 million and $60 thousand, respectively. During the years ended January 31, 2024 and January 31, 2023, the Company incurred interest of approximately $450 thousand and $413 thousand for the Acquisition Note, respectively. |
Concentrations
Concentrations | 12 Months Ended |
Jan. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Revenues and Accounts Receivable For the year ended January 31, 2024, the Company’s gross revenue was concentrated in three customers that accounted for approximately 26%, 11%, and 10% respectively. For the year ended January 31, 2023, the Company’s gross revenue was concentrated in two customers that accounted for approx imately 25% and 13%, respectiv ely. As of January 31, 2024, four customers represented approximately 20%, 15%, 13%, and 10% of total gross outstanding receivables, respectively. As of January 31, 2023 , three customers represented approximately 20%, 15% and 11% of total gross outstanding receivables, respectiv |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Jan. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Preferred Stock and Series A Preferred Stock The Company is authorized to issue 20 million shares of preferred stock, $0.00001 par value per share. The Company has designated 120 thousand shares of preferred stock as Series A Convertible Preferred stock. As of January 31, 2024 and 2023, no shares of Series A Convertible Preferred Stock are outstanding. Series B Preferred The Company has designated 200 thousand shares of preferred stock, $0.00001 par value per share, for each of the Series B Preferred. The holders of the Series B Preferred Stock shall be entitled to receive, upon liquidation, dissolution or winding up of the Company, the amount of cash, securities or other property to which such holder would be entitled to receive with respect to such shares of Series B Preferred Stock if such shares had been converted to common stock immediately prior to such liquidation. Holders of the Series B Preferred Stock were entitled to receive cumulative cash dividends at an annual rate of eight percent (8%). Holders of the Series B Preferred Stock shall have no voting rights. Each share of Series B Preferred stock shall be convertible, at the option of the holder, into shares of common stock at a rate of 1 share of Series B Preferred Stock into 15 shares of common stock. For the year ended January 31, 2023, the Company sold approximately 55 thousand shares, raising gross proceeds of approximately $1.3 million. On June 22, 2023, all the holders of the Series B Preferred Stock converted the shares of Series B Preferred Stock into 819 thousand shares of Common Stock of the Company. As of January 31, 2024 and 2023, 0 and 55 thousand shares of Series B Preferred Stock were outstanding, respectively. During the year ended January 31, 2024 and 2023, the Company paid dividends of approximately $49 thousand and $34 thousand, respectively. Restricted Stock Units The fair value of restricted stock units is determined based on the closing price of the Company's Common Stock on the grant date. Restricted Stock Units generally vest on a graded basis over three of service. A summary of the status of the Company's Restricted Stock Units is presented below. Restricted Weighted Average Non-vested Restricted Stock Units – February 1, 2023 367,647 $ 1.36 Granted 283,414 $ 2.65 Vested (118,210) $ 1.14 Forfeited (39,773) $ 1.76 Non-vested Restricted Stock Units – January 31, 2024 493,078 $ 1.91 At January 31, 2024 there was approximately $748 thousand of total unrecognized compensation expense related to Restricted Stock Units, which is expected to be recognized over a weighted-average period of 1.84 years. During the years ended January 31, 2024 and 2023 the Company recognized stock-based compensation related to RSUs of an aggregate of approximately $279 thousand and $50 thousand respectively, which was recorded to selling, general and administrative expenses or cost of goods sold depending on the nature of the employee on the Consolidated Statement of Operations. Of the total 283,414 RSUs issued during the year ended January 31, 2024, 64,590 were issued to the Board of Directors and 218,824 were issued to employees of the Company. Options The following is a summary of the Company’s option activity: Options Weighted Average Weighted Aggregate Intrinsic Value Outstanding – February 1, 2023 689,000 $ 0.77 2.95 545 Granted — — Exercised (232,500) $ 0.54 Expired/forfeited (339,000) $ 0.67 Outstanding – January 31, 2024 117,500 $ 1.48 8.36 333 Exercisable – January 31, 2024 5,000 $ 1.48 8.36 14 During the year ended January 31, 2024, 232,500 options at a weighted average exercise price of 0.54 per share were exchanged for 199,420 shares of common stock. The Company received approximately $68 thousand for the exercise of these options, as a portion of the options were cashless exercised. During the year ended January 31, 2023, 130,000 options at a weighted average exercise price of $1.00 per share were exchanged for 57,093 shares of common stock. The Company received approximately $26 thousand for the exercise of these options, as a portion of the options were cashless exercised. For the years ended January 31, 2024 and 2023, the Company recognized share-based compensation related to options of an aggregate of approximately $65 thousand and $60 thousand, respectively, which is included in selling, general and administrative expenses on the accompanying Consolidated Stat ements of Operations. At January 31, 2024, there was unrecognized share-based compensation of approximately $55 thousand . Warrants In conjunction with the Series B Preferred offering during the year ended January 31, 2023, the placement agent received one warrant for every $100 invested. The fair value of the warrants as of grant date was approximately $17 thousand and was valued using a Black-Scholes option pricing model using the following assumptions: September 13, 2022 Risk-free interest rate 3.58 % Expected life 5 years Expected volatility of underlying stock 82.52 % Dividends 0 % The following is a summary of the Company’s warrant activity: Warrants Weighted Average Outstanding – February 1, 2023 13,650 $ 2.25 Exercisable – February 1, 2023 13,650 $ 2.25 Granted 0 Exercised (13,650) $ — Outstanding – January 31, 2024 — $ — Exercisable – January 31, 2024 — $ — During the year ended January 31, 2024, the Company issued 13,650 shares of common stock upon the cashless exercise of the warrants. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation, Claims and Assessments From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results. Licensing and Royalty Agreements On March 1, 2010, the Company was assigned a Development and License agreement (the “Agreement”). Under the terms of the Agreement the Licensor shall develop for the Company a line of beef meatballs with sauce, turkey meatballs with sauce and other similar meats and sauces for commercial manufacture, distribution and sale (each a “Licensor Product” and collectively the “Licensor Products”). Licensor shall work with Licensee to develop Licensor Products that are acceptable to Licensee. Upon acceptance of a Licensor Product by Licensee, Licensor’s trade secret recipes, formulas methods and ingredients for the preparation and production of such Licensor Products (the “Recipes”) shall be subject to this Development and License Agreement. The Exclusive Term began on January 1, 2009 (the “Effective Date”) and ends on the 50th anniversary of the Effective Date. The Royalty Rate shall be: 6% of net sales up to $500 thousand of net sales for each Agreement year; 4% of Net Sales from $500 thousand up to $2.5 million of Net Sales for each Agreement year; 2% of Net Sales from $2.5 million up to $20 million of Net Sales for each Agreement year; and 1% of Net Sales in excess of $20 million of Net Sales for each Agreement year. In order to continue the Exclusive term, the Company shall pay a minimum royalty of $125 thousand each year. The Company incurred approximately $637 thousand and $584 thousand of royalty expenses for the year ended January 31, 2024 and 2023, respectively. Royalty expenses are included in selling, general and administrative expenses on the consolidated statements of operations. Agreements with Placement Agents and Finders Spartan Capital, LLC The Company entered into a fourth Financial Advisory and Investment Banking Agreement with Spartan Capital Securities, LLC (“Spartan”) effective April 1, 2015 (the “Spartan Advisory Agreement”). Pursuant to the Spartan Advisory Agreement, if the Company enters into a change of control transaction during the term of the agreement through October 1, 2022, the Company shall pay to Spartan a fee equal to 3% of the consideration paid or received by the Company and/or its stockholders in such transaction. Based on this agreement with Spartan, during the year ended January 31, 2023, the Company paid Spartan approximately $36 thousand upon the consummation of the 24% minority int erest in CIF. AGES Financial Services. Ltd. On July 6, 2022, the Company executed a Proposed Offering Engagement Letter with AGES Financial Services. Ltd. (“AGES”) to act as a non-exclusive (i) dealer-manager, (ii) placement agent and/or (iii) financial advisor for a proposed issuance, or series of issuances, for up to $5 million of the Company’s Series B Convertible Preferred Stock (“Proposed Offering”) in a private placement to be conducted by the Company pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 506(b) of Regulation D promulgated by the Commission under the Securities Act of 1933, as amended. The period of the Engagement was from July 5, 2022 through December 31, 2022. In consideration for its services in the offering, AGES was entitled to a cash fee equal to 4% of the net dollar amount received by the Company from investors sourced by AGES plus 5 year warrants to buy Common Stock of the Company at the rate of 1 warrant for every $100 of such net dollar amount. The Company was responsible for payment of all expenses relating to the offering, including, but not limited to costs associated with the registration of any Common Stock which may be issued upon conversion of the Series B Convertible Preferred Stock. For the year ending January 31, 2023 the Company paid AGES approximately $65 thousand. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement contains a lease at inception. Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company’s leases consist of office space, manufacturing space and machinery and equipment. The Company utilized a portfolio approach in determining the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. Future obligations relating to the exercise of renewal options is included in the measurement if, based on the judgment of management, the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of the renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised. Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. The components of lease expense were as follows (in thousands): January 31, 2024 January 31, 2023 Finance Leases Depreciation of Assets 257 128 Interest on lease liabilities 62 38 Operating Leases 572 545 Total net lease cost 891 711 Supplemental balance sheet information related to leases was as follows (in thousands): January 31, 2024 January 31, 2023 Operating Leases Operating lease ROU assets $ 2,889 $ 3,237 Current operating lease liabilities, included in current liabilities $ 434 $ 392 Noncurrent operating lease liabilities, included in long-term liabilities 2,515 2,897 Total operating lease liabilities $ 2,949 $ 3,289 Finance Leases Property and equipment at cost $ 2,187 $ 917 Accumulated depreciation (610) (353) Property and equipment, net $ 1,577 $ 564 Current obligations of finance lease liabilities, included in current liabilities $ 367 $ 182 Finance leases, net of current obligations, included in long-term liabilities 1,062 249 Total finance lease liabilities $ 1,429 $ 431 Supplemental cash flow and other information related to leases was as follows: January 31, 2024 January 31, 2023 Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 340 $ 343 Financing cash flows from finance leases 272 235 ROU assets obtained in exchange for lease liabilities (in thousands) Operating leases $ - $ - Finance leases 1,270 72 Weighted average remaining lease term (in years) Operating leases 6.57 7.50 Finance leases 4.49 2.60 Weighted average discount rate: Operating leases 4.85 % 4.85 % Finance Leases 6.74 % 3.41 % Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands): For the fiscal years ended Finance Leases Operating Leases Total Maturities of Lease Liabilities 2025 $ 454 $ 572 $ 1,026 2026 349 573 922 2027 302 467 769 2028 293 495 788 2029 197 495 692 Thereafter 90 836 926 Total undiscounted future lease payments 1,685 3,438 5,123 Less: imputed interest (256) (489) (745) Total present value of future lease liabilities $ 1,429 $ 2,949 $ 4,378 |
Leases | Leases The Company determines if an arrangement contains a lease at inception. Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company’s leases consist of office space, manufacturing space and machinery and equipment. The Company utilized a portfolio approach in determining the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. Future obligations relating to the exercise of renewal options is included in the measurement if, based on the judgment of management, the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of the renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised. Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. The components of lease expense were as follows (in thousands): January 31, 2024 January 31, 2023 Finance Leases Depreciation of Assets 257 128 Interest on lease liabilities 62 38 Operating Leases 572 545 Total net lease cost 891 711 Supplemental balance sheet information related to leases was as follows (in thousands): January 31, 2024 January 31, 2023 Operating Leases Operating lease ROU assets $ 2,889 $ 3,237 Current operating lease liabilities, included in current liabilities $ 434 $ 392 Noncurrent operating lease liabilities, included in long-term liabilities 2,515 2,897 Total operating lease liabilities $ 2,949 $ 3,289 Finance Leases Property and equipment at cost $ 2,187 $ 917 Accumulated depreciation (610) (353) Property and equipment, net $ 1,577 $ 564 Current obligations of finance lease liabilities, included in current liabilities $ 367 $ 182 Finance leases, net of current obligations, included in long-term liabilities 1,062 249 Total finance lease liabilities $ 1,429 $ 431 Supplemental cash flow and other information related to leases was as follows: January 31, 2024 January 31, 2023 Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 340 $ 343 Financing cash flows from finance leases 272 235 ROU assets obtained in exchange for lease liabilities (in thousands) Operating leases $ - $ - Finance leases 1,270 72 Weighted average remaining lease term (in years) Operating leases 6.57 7.50 Finance leases 4.49 2.60 Weighted average discount rate: Operating leases 4.85 % 4.85 % Finance Leases 6.74 % 3.41 % Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands): For the fiscal years ended Finance Leases Operating Leases Total Maturities of Lease Liabilities 2025 $ 454 $ 572 $ 1,026 2026 349 573 922 2027 302 467 769 2028 293 495 788 2029 197 495 692 Thereafter 90 836 926 Total undiscounted future lease payments 1,685 3,438 5,123 Less: imputed interest (256) (489) (745) Total present value of future lease liabilities $ 1,429 $ 2,949 $ 4,378 |
Income Tax Provision
Income Tax Provision | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | Income Tax Provision The income tax provision consists of the following: Incom e tax provision / (benefit) consists of the following (in thousands): January 31, 2024 January 31, 2023 Federal Current $ 1,451 $ 113 Deferred 251 (184) State and Local Current 342 165 Deferred (36) (85) Income tax provision $ 2,008 $ 9 The Company had U.S. federal net operating loss carryovers (NOLs) of approximately $0.0 million and $2.7 million at January 31, 2024 and 2023, respectively, available to offset taxable income through 2034. The Company also has State NOLs of approximately $8.8 million and $8.8 million at January 31, 2024 and 2023, respectively, available to offset future taxable income through 2036. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future generation of taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. There was no valuation allowance as of January 31, 2024 and 2023. The Company evaluated the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 prescribes a comprehensive model for how a company should recognize, present, and disclose uncertain positions that the Company has taken or expects to take in its tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carry forward or amount of tax refundable is reduced) for unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. If applicable, interest costs related to the unrecognized tax benefits are required to be calculated and would be classified as “Other expenses – Interest” in the consolidated statements of operations. Penalties would be recognized as a component of “Selling, general and administrative expenses.” No interest or penalties on unpaid tax were recorded during the years ended January 31, 2024 and 2023, respectively. As of January 31, 2024 and 2023, no liability for unrecognized tax benefits was required to be reported. The Company does not expect any significant changes in its unrecognized tax benefits in the next year. The Company’s deferred tax assets and liabilities consisted of the effects of temporary differences attributable to the following: Deferred Tax Assets Year Ended Year Ended Net operating loss carryovers $ 24 $ 607 Share-based compensation 52 32 Acquisition costs 98 108 Capitalized start-up and organization costs 16 24 Right of use liability 722 820 Inventory 47 27 Bad debt 23 49 Capitalized R&D Costs 114 - Accrued payroll 387 — Total deferred tax assets 1,483 1,667 Deferred Tax Liabilities Fixed assets 225 65 Intangibles 46 77 Right of use asset 709 807 Total deferred tax liabilities 980 949 Net deferred tax asset $ 503 $ 718 The expected tax provision (benefit) based on the statutory rate is reconciled with actual tax provision (benefit) as follows: Year Ended Year Ended US Federal statutory rate 21.0 % 21.0 % State income tax, net of federal benefit 3.3 3.4 Adjustments to deferred tax assets (0.8) (24.0) Income tax provision (benefit) 23.4 % 0.4 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 6,561 | $ 2,304 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jan. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries as of the reporting period ending dates and for the reporting periods. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior years have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumption s impact, among others, the following: allowance for credit losses, valuation of the acquisition of the remaining interest of CIF (which was accounted for as an asset acquisition as substantially all of the fair value is concentrated in customer relationships) , the fair value of stock based compensation, inventory reserves, impairment of goodwill and intangible assets, and estimates for unrealized returns, discounts, and other allowances that are netted against revenue. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the consolidated financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates. |
Risks and Uncertainties | Risks and Uncertainties The Company operates in an industry that is subject to intense competition and changes in consumer demand. The Company’s operations are subject to significant risk and uncertainties including financial and operational risks including the potential risk of business failure. The Company has experienced, and in the future expects to continue to experience, variability in sales and earnings. The factors expected to contribute to this variability include, among others, (i) the cyclical nature of the grocery industry, (ii) general economic conditions in the various local markets in which the Company competes, including a potential general downturn in the economy, and (iii) the volatility of prices pertaining to food and beverages in connection with the Company’s distribution of the product. These factors, among others, make it difficult to project the Company’s operating results on a consistent basis. |
Segment Reporting | Segment Reporting For the years ended January 31, 2024 and 2023, t he Company was managed as a single operating segment. The Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information on an aggregate basis for purposes of allocating resources and assessing financial performance, as well as for making strategic operational decisions and managing the organization. As such, the Company has one reportable segment. Additionally, all of the Company’s assets are maintained in the United States. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. The majority of the Company’s cash and cash equivalents are held at one financial institution, which at January 31, 2024, exceeds insured amounts. The Company believes it mitigates such risk by having this cash held by a major financial institution. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses |
Inventories | Inventories |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost net of depreciation. Depreciation expense is computed using straight-line methods over the estimated useful lives. Asset lives for financial statement reporting of depreciation are: Machinery and equipment 2-7 years Furniture and fixtures 3 - 5 years Leasehold improvements * (*) Amortized on a straight-line basis over the term of the lease or the estimated useful lives, whichever period is shorter. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the consolidated statements of operations. The Company reviews the recoverability of property and equipment when circumstances indicate that the carrying value of an asset or asset class may not be recoverable. Indicators of impairment could include, among other factors, significant changes in the business environment, the planned closure of a facility, or deterioration in operating cash flows. Considerable management judgment is necessary to evaluate the impact of operating changes and to estimate future cash flows. Expenditures for repairs and maintenance which do not substantially improve or extend the useful life of an asset are expensed as incurred. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill is the excess of the consideration paid for a business over the fair value of the identifiable net assets acquired. Goodwill and other indefinite lived intangible assets are not amortized. Instead, these assets are reviewed at least annually for impairment. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. However, the Company may elect to perform the quantitative goodwill impairment test even if no indications of a potential impairment exist. When performing its quantitative annual goodwill impairment test the Company is comparing the fair value with its carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the fair value; however, the loss recognized would not exceed the total amount of goodwill. Additionally, the Company considers income tax effects from any tax-deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The fair value is estimated using discounted cash flow methodologies, as well as considering third party market value indicators. The Company’s use of a discounted cash flow methodology includes estimates of future revenue based upon budgets and projections. The Company also develops estimates for future levels of gross and operating profits and projected capital expenditures. The Company’s methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. Calculating the fair value requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such impairments could be material. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The carrying value of the Company’s short-term financial instruments, such as cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value due to the immediate or short-term maturity of these instruments. The interest rate on the Company’s line of credit and notes payable has a variable component, which is reflective of the market for such instruments at any given date, and as such the carrying value this debt value approximates its fair value. |
Research and Development | Research and Development |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with FASB Topic 606, Revenue from Contracts with Customers (Topic 606) . The Company’s sales are primarily generated from the sale of finished products to customers. Revenue is recognized when the performance obligation is satisfied, and the promised goods have been transferred. Control transfers when the product is shipped or delivered based upon applicable shipping terms. For each contract, the Company considers the transfer of product to be the performance obligation. Although some payment terms may be extended, generally the Company’s payment terms are approximately 15- 30 days. Accordingly, there are no significant financing components to consider when determining the transaction price. The Company elected to treat shipping and handling activities as fulfillment activities, and the related costs are recorded as selling expenses in selling, general and administrative expenses on the Consolidated Statements of Operations. The Company promotes its products with trade incentives and promotions. These programs include discounts, slotting fees, coupons, rebates, in-store display incentives and volume-based incentives. The trade incentives and promotions are recorded as a reduction to the transaction price based on amounts estimated as being due to customers at the end of the period. The Company derives these estimates based on historical experience. The Company does not receive a distinct service in relation to the trade incentives and promotions. The Company’s contracts are all short term in nature, therefore there are no unsatisfied performance obligations requiring disclosure as of January 31, 2024. |
Cost of Sales | Cost of Sales |
Advertising | Advertising |
Stock-Based Compensation | Stock-Based Compensation The Company provides compensation benefits in the form of performance stock awards, restricted stock units, stock options, and warrants. The cost of the stock-based compensation is recorded at fair value on the date of grant and expensed in our consolidated statement of operations over the requisite service period. Performance stock awards are granted to certain executive officers. Each performance stock award entitles the participant to earn shares of common stock upon the attainment of certain market conditions and certain performance goals over the applicable performance period. The recognition of the compensation expense for the performance stock awards is based upon the probable outcome of the market condition and performance conditions based on the fair value of the award on the date of grant. To determine the value of PSUs with market conditions for stock-based compensation purposes, the Company used the Monte Carlo simulation valuation model. For each path, the PSUs payoff is calculated based on the contractual terms, whereas the fair value of the PSUs is calculated as the average present value of all modeled payoffs. The determination of the grant date fair value of PSUs issued is affected by a number of variables and subjective assumptions, including (i) the fair value of the Company’s common stock of $1.17 and $1.40, (ii) the expected common stock price volatility over the expected life of the award of 85.7% and 87.0%, (iii) the term of the award of 5 years and 5 years, (iv) risk-free interest rate of 3.7% and 3.4%, (v) the expected dividend yield of 0% and 0%. Forfeitures are recognized when they occur. There were no performance stock units that vested in the year ended January 31, 2024. The Company's performance against the defined goals are re-evaluated on a quarterly basis throughout the performance period and the recognition of the compensation expense is adjusted for subsequent changes in the estimated or actual outcome. The Company values stock options and warrants using the Black-Scholes option pricing model. Grants of share-based payment awards issued to non-employees for services rendered have been recorded at the fair value of the share-based payment, which is the more readily determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service. For the year ended January 31, 2024 and 2023, when computing fair value of stock options issued, the Company has considered the following variables: January 31, 2024 January 31, 2023 Risk-free interest rate N/A 2.8 % Expected life of grants N/A 6.5 years Expected volatility of underlying stock N/A 85.7 % Dividends N/A 0 The expected option term is computed using the “simplified method” for “plain vanilla” options as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The expected stock price volatility for the Company’s stock options was estimated using the historical volatilities of the Company’s common stock. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. The Company values Restricted Stock Units ("RSUs") based on the closing price of the Company's common stock on the date the grant is issued and recognizes the expense related to this value on a straight line basis over the vesting term. |
Earnings Per Share | Earnings Per Share Basic net income or loss per share attributable to common stockholders excludes dilution and is computed by dividing net income attributable to common stockholders during the period by the weighted average number of common shares outstanding during the period. Diluted net income or loss per share reflects potential dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period, which is increased by the number of additional common shares that would have been outstanding if the potential common shares had been issued. However, if the effect of any additional securities are anti-dilutive (i.e., resulting in a higher net income per share or lower net loss per share), they are excluded from the dilutive net income computation. The dilutive effect of stock options, warrants, and restricted stock is calculated using the treasury-stock method and the dilutive effect of the Series B Preferred stock is calculated using the if-converted method. |
Income Taxes | Income Taxes Income taxes are provided in accordance with ASC 740, “ Accounting for Income Taxes ”. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the period of deferred tax assets and liabilities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification and makes targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. This guidance will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We do not expect the adoption to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2022, including any interim impairment tests within those annual periods, with early application permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2022, we elected to early adopt ASU 2017-04, and the adoption had no impact on our consolidated financial statements. In March 2023, the FASB issued ASU No. 2023-02, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investment Tax Credit Structures Using the Proportional Amortization Method." The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This guidance will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We do not expect the adoption to have a material impact on our consolidated financial statements. In October 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-06, Disclosure Improvements: Amendments - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. The FASB issued the standard to introduce changes to US GAAP that originate in either SEC Regulation S-X or S-K, which are rules about the form and content of financial reports. The provisions of the standard are contingent when the SEC removes the related disclosure provisions from Regulation S-X and S-K. The company does not expect the provisions of the standard to have a material impact on the Company's financial statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendment is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption ASU No. 2023-07 will have to the financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in the ASU address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendment is effective retrospectively for fiscal years beginning after December 15, 2024, on a prospective basis, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption ASU No. 2023-09 will have to the financial statements and related disclosures. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Results of Operations | The following presents the unaudited results of operations for the pe riod June 28, 2022 ( minority interest acquisition date) through January 31, 2023 and from February 1, 2023 through June 28, 2023 (CIF Acquisition date) of CIF (in thousands). For the Period For the Period Revenues $ 13,721 $ 18,238 Net income $ 931 $ 598 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Inventories | Inventories by major category are as follows (in thousands): January 31, 2024 January 31, 2023 Raw materials and packaging $ 1,159 $ 1,883 Work in process 237 99 Finished goods 1,914 1,654 Total $ 3,310 3,636 |
Schedule of Asset Lives | Asset lives for financial statement reporting of depreciation are: Machinery and equipment 2-7 years Furniture and fixtures 3 - 5 years Leasehold improvements * (*) Amortized on a straight-line basis over the term of the lease or the estimated useful lives, whichever period is shorter. |
Schedule of Other Intangible Assets | Other intangibles consist of trademarks, trade names and customer relationships. Intangible asset lives for financial statement reporting of amortization are: Tradenames and trademarks 3 years Customer relationships 4 - 5 years |
Schedule of Expenses of Slotting Fees, Sales Discounts, and Allowances | Expenses such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows (in thousands): For the Years Ended January 31, 2024 January 31, 2023 Gross Sales $ 106,104 $ 95,420 Less: Slotting, Discounts, and Allowances 2,820 2,232 Net Sales $ 103,284 $ 93,188 |
Schedule of Disaggregates Gross Revenue by Significant Geographic Area | The following table disaggregates gross revenue by significant geographic area for the years ended January 31, 2024 and 2023 (in thousands): For the Years Ended January 31, 2024 January 31, 2023 Northeast $ 37,189 $ 36,846 Southeast 30,183 28,306 Midwest 18,609 15,243 West 20,123 15,025 Total gross revenue $ 106,104 $ 95,420 |
Summary of Variables for Computing Fair Value of Stock Options Issued | For the year ended January 31, 2024 and 2023, when computing fair value of stock options issued, the Company has considered the following variables: January 31, 2024 January 31, 2023 Risk-free interest rate N/A 2.8 % Expected life of grants N/A 6.5 years Expected volatility of underlying stock N/A 85.7 % Dividends N/A 0 |
Reconciliation of Basic and Diluted Earnings Per Share to Net Income | The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share (in thousands). For the Years Ended January 31, 2024 January 31, 2023 Numerator: Net income attributable to common stockholders $ 6,512 2,270 Effect of dilutive securities: 49 34 Diluted net income $ 6,561 $ 2,304 Denominator: Weighted average common shares outstanding - basic 36,814 36,094 Dilutive securities (a): Series B Preferred — 819 Options 64 355 Performance Stock Units 1,195 — Restricted Stock 308 45 Weighted average common shares outstanding and assumed conversion – diluted 38,381 37,313 Basic net income per common share $ 0.18 $ 0.06 Diluted net income per common share $ 0.17 $ 0.06 (a) - Anti-dilutive securities excluded: Options — 150 Warrants — 14 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | Property and equipment on January 31, 2024 and January 31, 2023 are as follows (in thousands): January 31, 2024 January 31, 2023 Machinery and Equipment $ 4,437 $ 5,387 Furniture and Fixtures 252 $ 285 Leasehold Improvements 2,956 $ 3,480 7,645 $ 9,152 Less: Accumulated Depreciation 3,209 $ 5,729 Total $ 4,436 $ 3,423 |
Intangibles, net (Tables)
Intangibles, net (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangibles, net consisted of the following at January 31, 2024 (in thousands): Gross Accumulated Net Carrying Weighted Customer relationships $ 6,418 $ (1,463) $ 4,955 3.29 Tradename and trademarks $ 79 $ (55) $ 24 0.91 $ 6,497 $ (1,518) $ 4,979 Intangibles, net consisted of the following at January 31, 2023 (in thousands): Gross Accumulated Net Carrying Weighted Customer relationships $ 1,862 $ (409) $ 1,453 3.41 Tradename and trademarks $ 79 $ (29) $ 50 1.91 $ 1,941 $ (438) $ 1,503 |
Schedule of Estimated Aggregate Amortization Expense | We expect the estimated aggregate amortization expense for each of the five succeeding fiscal years to be as follows (in thousands): 2025 $ 1,539 2026 $ 1,513 2027 $ 1,465 2028 $ 462 Total $ 4,979 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Equity [Abstract] | |
Summary of Restricted Stock Units Activity | A summary of the status of the Company's Restricted Stock Units is presented below. Restricted Weighted Average Non-vested Restricted Stock Units – February 1, 2023 367,647 $ 1.36 Granted 283,414 $ 2.65 Vested (118,210) $ 1.14 Forfeited (39,773) $ 1.76 Non-vested Restricted Stock Units – January 31, 2024 493,078 $ 1.91 |
Summary of Option Activity | The following is a summary of the Company’s option activity: Options Weighted Average Weighted Aggregate Intrinsic Value Outstanding – February 1, 2023 689,000 $ 0.77 2.95 545 Granted — — Exercised (232,500) $ 0.54 Expired/forfeited (339,000) $ 0.67 Outstanding – January 31, 2024 117,500 $ 1.48 8.36 333 Exercisable – January 31, 2024 5,000 $ 1.48 8.36 14 |
Schedule of Warrants Fair Value Assumption | The fair value of the warrants as of grant date was approximately $17 thousand and was valued using a Black-Scholes option pricing model using the following assumptions: September 13, 2022 Risk-free interest rate 3.58 % Expected life 5 years Expected volatility of underlying stock 82.52 % Dividends 0 % |
Summary of Warrant Activity | The following is a summary of the Company’s warrant activity: Warrants Weighted Average Outstanding – February 1, 2023 13,650 $ 2.25 Exercisable – February 1, 2023 13,650 $ 2.25 Granted 0 Exercised (13,650) $ — Outstanding – January 31, 2024 — $ — Exercisable – January 31, 2024 — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows (in thousands): January 31, 2024 January 31, 2023 Finance Leases Depreciation of Assets 257 128 Interest on lease liabilities 62 38 Operating Leases 572 545 Total net lease cost 891 711 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands): January 31, 2024 January 31, 2023 Operating Leases Operating lease ROU assets $ 2,889 $ 3,237 Current operating lease liabilities, included in current liabilities $ 434 $ 392 Noncurrent operating lease liabilities, included in long-term liabilities 2,515 2,897 Total operating lease liabilities $ 2,949 $ 3,289 Finance Leases Property and equipment at cost $ 2,187 $ 917 Accumulated depreciation (610) (353) Property and equipment, net $ 1,577 $ 564 Current obligations of finance lease liabilities, included in current liabilities $ 367 $ 182 Finance leases, net of current obligations, included in long-term liabilities 1,062 249 Total finance lease liabilities $ 1,429 $ 431 |
Schedule of Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow and other information related to leases was as follows: January 31, 2024 January 31, 2023 Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 340 $ 343 Financing cash flows from finance leases 272 235 ROU assets obtained in exchange for lease liabilities (in thousands) Operating leases $ - $ - Finance leases 1,270 72 Weighted average remaining lease term (in years) Operating leases 6.57 7.50 Finance leases 4.49 2.60 Weighted average discount rate: Operating leases 4.85 % 4.85 % Finance Leases 6.74 % 3.41 % |
Schedule of Future Minimum Payments Required Under Maturities of Operating Lease Liabilities | Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands): For the fiscal years ended Finance Leases Operating Leases Total Maturities of Lease Liabilities 2025 $ 454 $ 572 $ 1,026 2026 349 573 922 2027 302 467 769 2028 293 495 788 2029 197 495 692 Thereafter 90 836 926 Total undiscounted future lease payments 1,685 3,438 5,123 Less: imputed interest (256) (489) (745) Total present value of future lease liabilities $ 1,429 $ 2,949 $ 4,378 |
Schedule of Future Minimum Payments Required Under Maturities of Finance Lease Liabilities | Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands): For the fiscal years ended Finance Leases Operating Leases Total Maturities of Lease Liabilities 2025 $ 454 $ 572 $ 1,026 2026 349 573 922 2027 302 467 769 2028 293 495 788 2029 197 495 692 Thereafter 90 836 926 Total undiscounted future lease payments 1,685 3,438 5,123 Less: imputed interest (256) (489) (745) Total present value of future lease liabilities $ 1,429 $ 2,949 $ 4,378 |
Income Tax Provision (Tables)
Income Tax Provision (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision / (Benefit) | The income tax provision consists of the following: Incom e tax provision / (benefit) consists of the following (in thousands): January 31, 2024 January 31, 2023 Federal Current $ 1,451 $ 113 Deferred 251 (184) State and Local Current 342 165 Deferred (36) (85) Income tax provision $ 2,008 $ 9 |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred tax assets and liabilities consisted of the effects of temporary differences attributable to the following: Deferred Tax Assets Year Ended Year Ended Net operating loss carryovers $ 24 $ 607 Share-based compensation 52 32 Acquisition costs 98 108 Capitalized start-up and organization costs 16 24 Right of use liability 722 820 Inventory 47 27 Bad debt 23 49 Capitalized R&D Costs 114 - Accrued payroll 387 — Total deferred tax assets 1,483 1,667 Deferred Tax Liabilities Fixed assets 225 65 Intangibles 46 77 Right of use asset 709 807 Total deferred tax liabilities 980 949 Net deferred tax asset $ 503 $ 718 |
Schedule of Reconciliation of Expected Tax Provision (Benefit) to Actual Tax Provision (Benefit) | The expected tax provision (benefit) based on the statutory rate is reconciled with actual tax provision (benefit) as follows: Year Ended Year Ended US Federal statutory rate 21.0 % 21.0 % State income tax, net of federal benefit 3.3 3.4 Adjustments to deferred tax assets (0.8) (24.0) Income tax provision (benefit) 23.4 % 0.4 % |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Narrative (Details) - CIF - USD ($) $ in Thousands | Jun. 28, 2025 | Jun. 28, 2024 | Jun. 28, 2023 | Jun. 28, 2022 |
Business Acquisition [Line Items] | ||||
Ownership interest acquired | 24% | |||
Investment | $ 1,200 | |||
Cash transferred upon acquisition | $ 1,000 | 500 | ||
Common stock consideration | $ 700 | |||
Remaining ownership interest acquired | 76% | |||
Purchase price | $ 3,700 | |||
Promissory note consideration | $ 2,700 | |||
Forecast | ||||
Business Acquisition [Line Items] | ||||
Cash transferred upon acquisition | $ 1,200 | |||
Common stock consideration | $ 1,500 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Schedule of Results of Operations (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Jun. 28, 2023 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 103,284 | $ 93,188 | ||
Net income | $ 6,561 | $ 2,304 | ||
CIF | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 13,721 | $ 18,238 | ||
Net income | $ 931 | $ 598 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 USD ($) segment $ / shares shares | Jan. 31, 2023 USD ($) $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of reportable segments | segment | 1 | |
Reserve for uncollectable accounts | $ 93 | $ 233 |
Uncollectible accounts written off | 140 | 0 |
Reserve for obsolete inventory | 95 | 32 |
Goodwill impairment losses | 0 | |
Research and development expenses | 414 | 135 |
Advertising expenses | $ 1,200 | $ 693 |
Fair value of common stock (in dollars per share) | $ / shares | $ 1.17 | $ 1.40 |
Expected volatility (percent) | 85.70% | |
Term of award (years) | 6 years 6 months | |
Risk-free interest rate (percent) | 2.80% | |
Dividend yield (percent) | 0% | |
Stock issued | $ 486 | $ 110 |
Deferred tax asset | $ 503 | $ 718 |
Performance Stock Units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected volatility (percent) | 85.70% | 87% |
Term of award (years) | 5 years | 5 years |
Risk-free interest rate (percent) | 3.70% | 3.40% |
Dividend yield (percent) | 0% | 0% |
Vested (in shares) | shares | 0 | |
Employees | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock issued (in shares) | shares | 19,960 | |
Stock issued | $ 50 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Accounting Policies [Abstract] | ||
Raw materials and packaging | $ 1,159 | $ 1,883 |
Work in process | 237 | 99 |
Finished goods | 1,914 | 1,654 |
Total | $ 3,310 | $ 3,636 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Asset Lives (Details) | Jan. 31, 2024 |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Asset lives (in years) | 2 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Asset lives (in years) | 3 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Asset lives (in years) | 7 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Asset lives (in years) | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Other Intangible Assets (Details) | Jan. 31, 2024 |
Tradenames and trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Other intangible asset lives (in years) | 3 years |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Other intangible asset lives (in years) | 4 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Other intangible asset lives (in years) | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Expenses of Slotting Fees, Sales Discounts and Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Accounting Policies [Abstract] | ||
Gross Sales | $ 106,104 | $ 95,420 |
Less: Slotting, Discounts, and Allowances | 2,820 | 2,232 |
Net Sales | $ 103,284 | $ 93,188 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Disaggregates Gross Revenue by Significant Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total gross revenue | $ 106,104 | $ 95,420 |
Northeast | ||
Disaggregation of Revenue [Line Items] | ||
Total gross revenue | 37,189 | 36,846 |
Southeast | ||
Disaggregation of Revenue [Line Items] | ||
Total gross revenue | 30,183 | 28,306 |
Midwest | ||
Disaggregation of Revenue [Line Items] | ||
Total gross revenue | 18,609 | 15,243 |
West | ||
Disaggregation of Revenue [Line Items] | ||
Total gross revenue | $ 20,123 | $ 15,025 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Variables for Computing Fair Value of Stock Options Issued (Details) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Risk-free interest rate (percent) | 2.80% |
Expected life of grants (in years) | 6 years 6 months |
Expected volatility of underlying stock (percent) | 85.70% |
Dividends (percent) | 0% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Earnings Per Share to Net Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Numerator: | ||
Net income attributable to common stockholders | $ 6,512 | $ 2,270 |
Effect of dilutive securities: | 49 | 34 |
Diluted net income | $ 6,561 | $ 2,304 |
Denominator: | ||
Weighted average common shares outstanding – basic (in shares) | 36,814,162 | 36,093,858 |
Weighted average common shares outstanding and assumed conversion – diluted (in shares) | 38,381,407 | 37,313,178 |
Basic net income per common share (in dollars per share) | $ 0.18 | $ 0.06 |
Diluted net income per common share (in dollars per share) | $ 0.17 | $ 0.06 |
Warrants | ||
Denominator: | ||
Anti-dilutive securities excluded (in shares) | 0 | 14,000 |
Options | ||
Denominator: | ||
Dilutive securities (in shares) | 64,000 | 355,000 |
Anti-dilutive securities excluded (in shares) | 0 | 150,000 |
Performance Stock Units | ||
Denominator: | ||
Dilutive securities (in shares) | 1,195,000 | 0 |
Restricted Stock | ||
Denominator: | ||
Dilutive securities (in shares) | 308,000 | 45,000 |
Series B Preferred Stock | ||
Denominator: | ||
Dilutive securities (in shares) | 0 | 819,000 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,645 | $ 9,152 |
Less: Accumulated Depreciation | 3,209 | 5,729 |
Total | 4,436 | 3,423 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,437 | 5,387 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 252 | 285 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,956 | $ 3,480 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,043 | $ 920 |
Intangibles, net - Schedule of
Intangibles, net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,497 | $ 1,941 |
Accumulated Amortization | (1,518) | (438) |
Net Carrying Amount | 4,979 | 1,503 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,418 | 1,862 |
Accumulated Amortization | (1,463) | (409) |
Net Carrying Amount | $ 4,955 | $ 1,453 |
Weighted Average Remaining Life (years) | 3 years 3 months 14 days | 3 years 4 months 28 days |
Tradename and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 79 | $ 79 |
Accumulated Amortization | (55) | (29) |
Net Carrying Amount | $ 24 | $ 50 |
Weighted Average Remaining Life (years) | 10 months 28 days | 1 year 10 months 28 days |
Intangibles, net - Narrative (D
Intangibles, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 1,080 | $ 482 |
Intangibles, net - Schedule o_2
Intangibles, net - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2025 | $ 1,539 | |
2026 | 1,513 | |
2027 | 1,465 | |
2028 | 462 | |
Net Carrying Amount | $ 4,979 | $ 1,503 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
Jun. 28, 2023 USD ($) | Jan. 31, 2023 USD ($) | Jan. 31, 2024 USD ($) extensionOption | Jan. 31, 2023 USD ($) | Jun. 28, 2022 | Dec. 29, 2021 USD ($) | |
CIF | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest | 24% | |||||
Related Party | CIF | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest | 24% | |||||
Sales | $ 10,900 | $ 14,700 | ||||
Commission expenses and consulting services expenses | $ 267 | $ 424 | ||||
Receivables | 1,000 | 1,000 | ||||
Related Party | Farmingdale | ||||||
Related Party Transaction [Line Items] | ||||||
Number of options to extend lease | extensionOption | 2 | |||||
Rent payments | $ 343 | 262 | ||||
Related Party | Farmingdale | Renewal Option One | ||||||
Related Party Transaction [Line Items] | ||||||
Lease extension term | 10 years | |||||
Related Party | Farmingdale | Renewal Option Two | ||||||
Related Party Transaction [Line Items] | ||||||
Lease extension term | 10 years | |||||
Related Party | Farmingdale | December 31, 2026 | ||||||
Related Party Transaction [Line Items] | ||||||
Rent payments | $ 20 | |||||
Related Party | Farmingdale | End of Initial Lease Term | ||||||
Related Party Transaction [Line Items] | ||||||
Rent payments | 24 | |||||
Promissory Note | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Promissory note | 2,250 | 1,500 | 2,250 | $ 3,000 | ||
Annual principal payments | $ 750 | |||||
Accrued interest rate per annum | 3.50% | |||||
Interest expense | 77 | 102 | ||||
Accrued interest | $ 7 | $ 5 | $ 7 |
Loan and Security Agreement (De
Loan and Security Agreement (Details) - M&T Bank $ in Thousands | 12 Months Ended | |||
Dec. 04, 2023 | Dec. 29, 2021 USD ($) | Jan. 31, 2024 USD ($) | Jan. 31, 2023 USD ($) | |
The Credit Facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Total available borrowings | $ 5,500 | |||
Outstanding balance on line of credit | 0 | $ 890 | ||
Incurred interest | 47 | 132 | ||
The Credit Facility | Line of Credit | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Advances limit, percent of eligible accounts receivable | 80% | |||
Advances limit, percent of eligible inventory | 50% | |||
The Credit Facility | Line of Credit | Variable Rate Component One | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 2.25 | |||
The Credit Facility | Line of Credit | Variable Rate Component One | SOFR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.25% | |||
The Credit Facility | Line of Credit | Variable Rate Component Two | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 1.50 | |||
The Credit Facility | Line of Credit | Variable Rate Component Two | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 2.25 | |||
The Credit Facility | Line of Credit | Variable Rate Component Two | SOFR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
The Credit Facility | Line of Credit | Variable Rate Component Three | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 1.50 | |||
The Credit Facility | Line of Credit | Variable Rate Component Three | SOFR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Multiple Disbursement Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Incurred interest | 450 | 413 | ||
Original principal amount | $ 7,500 | 4,600 | 6,200 | |
Amortization period (in months) | 60 months | |||
Unamortized discount | $ 38 | $ 60 | ||
Multiple Disbursement Term Loan | Variable Loan Rate | ||||
Line of Credit Facility [Line Items] | ||||
Measurement base percent | 0% | |||
Multiple Disbursement Term Loan | Variable Rate Component One | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 2.25 | |||
Multiple Disbursement Term Loan | Variable Rate Component One | Variable Loan Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
Multiple Disbursement Term Loan | Variable Rate Component Two | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 1.50 | |||
Multiple Disbursement Term Loan | Variable Rate Component Two | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 2.25 | |||
Multiple Disbursement Term Loan | Variable Rate Component Two | Variable Loan Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3% | |||
Multiple Disbursement Term Loan | Variable Rate Component Three | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Senior Funded Debt/EBITDA ratio | 1.50 | |||
Multiple Disbursement Term Loan | Variable Rate Component Three | Variable Loan Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.50% |
Concentrations (Details)
Concentrations (Details) - Customer Concentration Risk | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Customer One | Revenue Benchmark | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26% | 25% |
Customer One | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 20% | 20% |
Customer Two | Revenue Benchmark | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11% | 13% |
Customer Two | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15% | 15% |
Customer Three | Revenue Benchmark | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10% | |
Customer Three | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13% | 11% |
Customer Four | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10% |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 22, 2023 shares | Jan. 31, 2024 USD ($) $ / shares shares | Jan. 31, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Preferred stock authorized (in shares) | 20,000,000 | ||
Preferred stock par value (in dollars per share) | $ / shares | $ 0.00001 | ||
Preferred shares issued upon conversion (in shares) | 15 | ||
Issuance of Preferred B Shares, net of issuance costs | $ | $ 1,300 | ||
Options exchanged for common stock (in shares) | 232,500 | 130,000 | |
Weighted average exercise price (in dollars per share) | $ / shares | $ 0.54 | $ 1 | |
Granted (in shares) | 199,420 | 57,093 | |
Proceeds from exercise of options | $ | $ 68 | $ 26 | |
Unrecognized share-based compensation | $ | 55 | ||
Warrant investment rate | 0.01 | ||
Warrants | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value of warrants as of grant date | $ | $ 17 | ||
Issued (in shares) | 13,650 | ||
Restricted Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ | $ 748 | ||
Weighted-average period for recognition of unrecognized compensation expense | 1 year 10 months 2 days | ||
Stock-based compensation | $ | $ 279 | $ 50 | |
Issued (in shares) | 283,414 | ||
Restricted Stock | Employees | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Issued (in shares) | 218,824 | ||
Restricted Stock | Director | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Issued (in shares) | 64,590 | ||
Options | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-based compensation | $ | $ 65 | $ 60 | |
Minimum | Restricted Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Maximum | Restricted Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Series A Preferred Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Preferred stock authorized (in shares) | 120,000 | 120,000 | |
Preferred stock par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |
Preferred stock outstanding (in shares) | 0 | 0 | |
Series B Preferred Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Preferred stock authorized (in shares) | 200,000 | 200,000 | |
Preferred stock par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |
Preferred stock outstanding (in shares) | 0 | 54,600 | |
Cash dividend annual rate | 8% | ||
Stock sold (in shares) | 55,000 | ||
Issuance of Preferred B Shares, net of issuance costs | $ | $ 1,300 | ||
Conversion of Series B preferred stock (in shares) | 819,000 | ||
Dividends paid | $ | $ 49 | $ 34 |
Stockholders_ Equity - Summary
Stockholders’ Equity - Summary of Restricted Stock Units Activity (Details) - Restricted Stock | 12 Months Ended |
Jan. 31, 2024 $ / shares shares | |
Restricted Stock Units | |
Beginning balance (in shares) | shares | 367,647 |
Granted (in shares) | shares | 283,414 |
Vested (in shares) | shares | (118,210) |
Forfeited (in shares) | shares | (39,773) |
Ending balance (in shares) | shares | 493,078 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 1.36 |
Granted (in dollars per share) | $ / shares | 2.65 |
Vested (in dollars per share) | $ / shares | 1.14 |
Forfeited (in dollars per share) | $ / shares | 1.76 |
Ending balance (in dollars per share) | $ / shares | $ 1.91 |
Stockholders_ Equity - Summar_2
Stockholders’ Equity - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Options | ||
Outstanding – beginning balance (in shares) | 689,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (232,500) | (130,000) |
Expired/forfeited (in shares) | $ (339,000) | |
Outstanding – ending balance (in shares) | 117,500 | 689,000 |
Options exercisable (in shares) | 5,000 | |
Weighted Average Exercise Price | ||
Outstanding – beginning balance (in dollars per share) | $ 0.77 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0.54 | $ 1 |
Expired/forfeited (in dollars per share) | 0.67 | |
Outstanding – ending balance (in dollars per share) | 1.48 | $ 0.77 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.48 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding, weighted average remaining contractual life (in years) | 8 years 4 months 9 days | 2 years 11 months 12 days |
Options exercisable, weighted average remaining contractual life (in years) | 8 years 4 months 9 days | |
Options outstanding, aggregate intrinsic value | $ 333 | $ 545 |
Options exercisable, aggregate intrinsic value | $ 14 |
Stockholders_ Equity - Schedule
Stockholders’ Equity - Schedule of Warrants Fair Value Assumption (Details) | Sep. 13, 2022 |
Risk-free interest rate | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Measurement inputs (percent) | 0.0358 |
Expected life | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Expected life (years) | 5 years |
Expected volatility of underlying stock | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Measurement inputs (percent) | 0.8252 |
Dividends | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Measurement inputs (percent) | 0 |
Stockholders_ Equity - Summar_3
Stockholders’ Equity - Summary of Warrant Activity (Details) - Warrants | 12 Months Ended |
Jan. 31, 2024 $ / shares shares | |
Warrants | |
Outstanding –beginning balance (in shares) | shares | 13,650 |
Exercisable – beginning balance (in shares) | shares | 13,650 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (13,650) |
Outstanding – ending balance (in shares) | shares | 0 |
Exercisable – ending balance (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Outstanding – beginning balance (in dollars per share) | $ / shares | $ 2.25 |
Exercisable – beginning balance (in dollars per share) | $ / shares | 2.25 |
Granted (in dollars per share) | $ / shares | |
Exercised (in dollars per share) | $ / shares | 0 |
Outstanding – ending balance (in dollars per share) | $ / shares | 0 |
Exercisable – ending balance (in dollars per share) | $ / shares | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | 90 Months Ended | ||||
Jul. 06, 2022 USD ($) | Jan. 31, 2024 USD ($) | Jan. 31, 2023 USD ($) | Oct. 01, 2022 | Sep. 13, 2022 | Jun. 28, 2022 | |
Loss Contingencies [Line Items] | ||||||
Royalty term (in years) | 50 years | |||||
Royalty expense | $ 637 | $ 584 | ||||
Warrant investment rate | 0.01 | |||||
Expected life | ||||||
Loss Contingencies [Line Items] | ||||||
Expected life (years) | 5 years | |||||
CIF | ||||||
Loss Contingencies [Line Items] | ||||||
Ownership interest acquired | 24% | |||||
Spartan | ||||||
Loss Contingencies [Line Items] | ||||||
Change in control transaction fee (percent) | 3% | |||||
Fee paid upon consummation of minority interest in acquisition | $ 36 | |||||
AGES | ||||||
Loss Contingencies [Line Items] | ||||||
Cash fee, percent of net dollar amount received from investors | 4% | |||||
Warrant investment rate | 0.01 | |||||
Consideration paid for services in offering | $ 65 | |||||
AGES | Expected life | ||||||
Loss Contingencies [Line Items] | ||||||
Expected life (years) | 5 years | |||||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Royalty expense | $ 125 | |||||
Maximum | AGES | Series B Preferred Stock | ||||||
Loss Contingencies [Line Items] | ||||||
Stock authorized in private placement transaction | $ 5,000 | |||||
Tranche One | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of royalty rate on net sales | 6% | |||||
Tranche One | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Net sales | $ 500 | |||||
Tranche Two | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of royalty rate on net sales | 4% | |||||
Tranche Two | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Net sales | $ 500 | |||||
Tranche Two | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Net sales | $ 2,500 | |||||
Tranche Three | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of royalty rate on net sales | 2% | |||||
Tranche Three | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Net sales | $ 2,500 | |||||
Tranche Three | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Net sales | $ 20,000 | |||||
Tranche Four | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of royalty rate on net sales | 1% | |||||
Tranche Four | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Net sales | $ 20,000 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Finance Leases | ||
Depreciation of Assets | $ 257 | $ 128 |
Interest on lease liabilities | 62 | 38 |
Operating Leases | 572 | 545 |
Total net lease cost | $ 891 | $ 711 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Operating Leases | ||
Operating lease ROU assets | $ 2,889 | $ 3,237 |
Current operating lease liabilities, included in current liabilities | 434 | 392 |
Noncurrent operating lease liabilities, included in long-term liabilities | 2,515 | 2,897 |
Total operating lease liabilities | 2,949 | 3,289 |
Finance Leases | ||
Property and equipment at cost | 2,187 | 917 |
Accumulated depreciation | (610) | (353) |
Property and equipment, net | 1,577 | 564 |
Current obligations of finance lease liabilities, included in current liabilities | 367 | 182 |
Finance leases, net of current obligations, included in long-term liabilities | 1,062 | 249 |
Total finance lease liabilities | $ 1,429 | $ 431 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities (in thousands) | ||
Operating cash flows from operating leases | $ 340 | $ 343 |
Financing cash flows from finance leases | 272 | 235 |
ROU assets obtained in exchange for lease liabilities (in thousands) | ||
Operating leases | 0 | 0 |
Finance leases | $ 1,270 | $ 72 |
Weighted average remaining lease term (in years) | ||
Operating leases | 6 years 6 months 25 days | 7 years 6 months |
Finance leases | 4 years 5 months 26 days | 2 years 7 months 6 days |
Weighted average discount rate: | ||
Operating leases | 4.85% | 4.85% |
Finance Leases | 6.74% | 3.41% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Finance Leases | ||
2025 | $ 454 | |
2026 | 349 | |
2027 | 302 | |
2028 | 293 | |
2029 | 197 | |
Thereafter | 90 | |
Total undiscounted future lease payments | 1,685 | |
Less: imputed interest | (256) | |
Total present value of future lease liabilities | 1,429 | $ 431 |
Operating Leases | ||
2025 | 572 | |
2026 | 573 | |
2027 | 467 | |
2028 | 495 | |
2029 | 495 | |
Thereafter | 836 | |
Total undiscounted future lease payments | 3,438 | |
Less: imputed interest | (489) | |
Total present value of future lease liabilities | 2,949 | $ 3,289 |
Total Maturities of Lease Liabilities | ||
2025 | 1,026 | |
2026 | 922 | |
2027 | 769 | |
2028 | 788 | |
2029 | 692 | |
Thereafter | 926 | |
Total undiscounted future lease payments | 5,123 | |
Less: imputed interest | (745) | |
Total present value of future lease liabilities | $ 4,378 |
Income Tax Provision - Schedule
Income Tax Provision - Schedule of Components of Income Tax Provision / (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Federal | ||
Current | $ 1,451 | $ 113 |
Deferred | 251 | (184) |
State and Local | ||
Current | 342 | 165 |
Deferred | (36) | (85) |
Income tax provision | $ 2,008 | $ 9 |
Income Tax Provision - Narrativ
Income Tax Provision - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 0 | $ 0 |
Interest or penalties on unpaid tax | 0 | 0 |
Liability for unrecognized tax benefits | 0 | 0 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryovers | 0 | 2,700 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryovers | $ 8,800 | $ 8,800 |
Income Tax Provision - Schedu_2
Income Tax Provision - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Deferred Tax Assets | ||
Net operating loss carryovers | $ 24 | $ 607 |
Share-based compensation | 52 | 32 |
Acquisition costs | 98 | 108 |
Capitalized start-up and organization costs | 16 | 24 |
Right of use liability | 722 | 820 |
Inventory | 47 | 27 |
Bad debt | 23 | 49 |
Capitalized R&D Costs | 114 | 0 |
Accrued payroll | 387 | 0 |
Total deferred tax assets | 1,483 | 1,667 |
Deferred Tax Liabilities | ||
Fixed assets | 225 | 65 |
Intangibles | 46 | 77 |
Right of use asset | 709 | 807 |
Total deferred tax liabilities | 980 | 949 |
Net deferred tax asset | $ 503 | $ 718 |
Income Tax Provision - Schedu_3
Income Tax Provision - Schedule of Reconciliation of Expected Tax Provision (Benefit) to Actual Tax Provision (Benefit) (Details) | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
US Federal statutory rate | 21% | 21% |
State income tax, net of federal benefit | 3.30% | 3.40% |
Adjustments to deferred tax assets | (0.80%) | (24.00%) |
Income tax provision (benefit) | 23.40% | 0.40% |