Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Apr. 27, 2020 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MITCHAM INDUSTRIES INC | ||
Entity Central Index Key | 0000926423 | ||
Current Fiscal Year End Date | --01-31 | ||
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 Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 12,182,233 | ||
Entity Public Float | $ 49,096,243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,090 | $ 9,389 |
Restricted cash | 144 | 160 |
Accounts receivable, net of allowance for doubtful accounts of $4,054 and $2,113 at January 31, 2020 and 2019, respectively | 11,921 | 12,082 |
Inventories, net | 13,261 | 10,774 |
Prepaid expenses and other current assets | 2,211 | 1,735 |
Assets held for sale | 0 | 2,202 |
Total current assets | 30,627 | 36,342 |
Seismic equipment lease pool and property and equipment, net | 13,777 | 14,155 |
Operating lease right-of-use assets | 2,300 | |
Intangible assets, net | 8,161 | 10,495 |
Goodwill | 2,531 | 2,531 |
Non-current prepaid income taxes | 0 | 128 |
Deferred tax asset | 0 | 68 |
Long-term receivables, net of allowance for doubtful accounts of $- and $- at January 31, 2020 and January 31, 2019, respectively | 403 | 712 |
Other assets | 429 | 584 |
Long-term assets held for sale | 0 | 286 |
Total assets | 58,228 | 65,301 |
Current liabilities: | ||
Accounts payable | 2,650 | 1,534 |
Deferred revenue | 765 | 1,040 |
Accrued expenses and other current liabilities | 3,452 | 3,738 |
Income taxes Payable | 242 | 224 |
Operating lease liabilities - current | 1,339 | |
Liabilities held for sale | 0 | 892 |
Total current liabilities | 8,448 | 7,428 |
Operating lease liabilities - non-current | 961 | |
Other non-current liabilities | 967 | 1,195 |
Deferred tax liability | 200 | 0 |
Total liabilities | 10,576 | 8,623 |
Commitments and contingencies (Notes 10,16, and 20) | ||
Shareholders’ equity: | ||
Preferred stock, $1.00 par value; 1,000 shares authorized; 994 and 830 shares issued and outstanding at January 31, 2020, and 2019, respectively | 22,104 | 18,330 |
Common stock $.01 par value; 20,000 shares authorized; 14,097 and 14,049 shares issued at January 31, 2020 and 2019, respectively | 141 | 140 |
Additional paid-in capital | 123,964 | 123,085 |
Treasury stock, at cost (1,929 shares at January 31, 2020 and 2019) | (16,860) | (16,860) |
Accumulated deficit | (77,310) | (63,973) |
Accumulated other comprehensive loss | (4,387) | (4,044) |
Total shareholders’ equity | 47,652 | 56,678 |
Total liabilities and shareholders’ equity | $ 58,228 | $ 65,301 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, current | $ 4,054 | $ 2,113 |
Allowance for doubtful accounts, non-current | $ 0 | $ 0 |
Preferred stock, par value (in usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 994,000 | 830,000 |
Preferred stock, shares outstanding (in shares) | 994,000 | 830,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 14,097,000 | 14,049,000 |
Treasury stock, shares (in shares) | 1,929,000 | 1,929,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues: | |||
Sale of marine technology products | $ 29,538 | $ 25,571 | $ 27,420 |
Equipment leasing | 11,206 | 11,427 | 7,826 |
Sale of lease pool and other equipment | 1,931 | 5,944 | 13,030 |
Total revenues | 42,675 | 42,942 | 48,276 |
Cost of sales: | |||
Sale of marine technology products | 16,481 | 14,863 | 16,686 |
Equipment leasing (including lease pool depreciation of $4,959, $9,186 and $14,370 at January 31, 2020, 2019 and 2018, respectively) | 8,983 | 13,522 | 17,764 |
Equipment sales | 590 | 2,817 | 7,742 |
Total cost of sales | 26,054 | 31,202 | 42,192 |
Gross profit | 16,621 | 11,740 | 6,084 |
Operating expenses: | |||
Selling, general and administrative | 19,716 | 20,905 | 19,663 |
Research and development | 1,850 | 1,159 | 1,502 |
Provision for doubtful accounts | 2,000 | 200 | 1,013 |
Impairment of intangible assets | 760 | 0 | 1,466 |
Depreciation and amortization | 2,670 | 2,496 | 2,148 |
Total operating expenses | 26,996 | 24,760 | 25,792 |
Operating loss | (10,375) | (13,020) | (19,708) |
Other income (expense): | |||
Loss on sale (including $5,355 of cumulative translation loss) | 0 | (5,405) | 0 |
Reserve against non-current prepaid income taxes | 0 | (1,211) | 0 |
Interest (expense) income, net | (46) | 72 | 47 |
Other, net | 12 | (24) | (498) |
Total other expense | (34) | (6,568) | (451) |
Loss before income taxes | (10,409) | (19,588) | (20,159) |
Provision for income taxes | (878) | (252) | (910) |
Net loss | (11,287) | (19,840) | (21,069) |
Preferred stock dividends | (2,050) | (1,708) | (905) |
Net loss attributable to common shareholders | $ (13,337) | $ (21,548) | $ (21,974) |
Net loss per common share: | |||
Basic (in usd per share) | $ (1.10) | $ (1.78) | $ (1.82) |
Diluted (in usd per share) | $ (1.10) | $ (1.78) | $ (1.82) |
Shares used in computing loss per common share: | |||
Basic (in shares) | 12,143 | 12,105 | 12,084 |
Diluted (in shares) | 12,143 | 12,105 | 12,084 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Statement [Abstract] | |||
Lease pool depreciation | $ 4,959 | $ 9,186 | $ 14,370 |
Change in cumulative translation adjustment for sale of foreign entities | $ 0 | $ 5,355 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss attributable to common shareholders | $ (13,337) | $ (21,548) | $ (21,974) |
Change in cumulative translation adjustment for sale of foreign entities | 0 | 5,355 | 0 |
Other changes in cumulative translation adjustment | (343) | (545) | 1,740 |
Comprehensive loss | $ (13,680) | $ (16,738) | $ (20,234) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning balances (in shares) at Jan. 31, 2017 | 14,019 | 343 | |||||
Beginning balances at Jan. 31, 2017 | $ 80,932 | $ 140 | $ 7,294 | $ 121,401 | $ (16,858) | $ (20,451) | $ (10,594) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (21,069) | (21,069) | |||||
Foreign currency translation | 1,740 | 1,740 | |||||
Restricted stock forfeited for taxes | (2) | (2) | |||||
Preferred stock offering (in shares) | 189 | ||||||
Preferred stock offering | 4,250 | $ 4,250 | |||||
Preferred stock dividends | (905) | (905) | |||||
Stock-based compensation | 903 | 903 | |||||
Ending balances (in shares) at Jan. 31, 2018 | 14,019 | 532 | |||||
Ending balances at Jan. 31, 2018 | 65,849 | $ 140 | $ 11,544 | 122,304 | (16,860) | (42,425) | (8,854) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (19,840) | (19,840) | |||||
Foreign currency translation | 4,810 | 4,810 | |||||
Restricted stock issued (in shares) | 30 | ||||||
Restricted stock forfeited for taxes | 0 | ||||||
Preferred stock offering (in shares) | 298 | ||||||
Preferred stock offering | 6,786 | $ 6,786 | |||||
Preferred stock dividends | (1,708) | (1,708) | |||||
Stock-based compensation | 781 | 781 | |||||
Ending balances (in shares) at Jan. 31, 2019 | 14,049 | 830 | |||||
Ending balances at Jan. 31, 2019 | 56,678 | $ 140 | $ 18,330 | 123,085 | (16,860) | (63,973) | (4,044) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (11,287) | (11,287) | |||||
Foreign currency translation | (343) | (343) | |||||
Equity Compensation (in shares) | 9 | ||||||
Equity Compensation | 26 | $ 1 | 25 | ||||
Restricted stock issued (in shares) | 39 | ||||||
Preferred stock offering (in shares) | 164 | ||||||
Preferred stock offering | 3,774 | $ 3,774 | |||||
Preferred stock dividends | (2,050) | (2,050) | |||||
Stock-based compensation | 854 | 854 | |||||
Ending balances (in shares) at Jan. 31, 2020 | 14,097 | 994 | |||||
Ending balances at Jan. 31, 2020 | $ 47,652 | $ 141 | $ 22,104 | $ 123,964 | $ (16,860) | $ (77,310) | $ (4,387) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (11,287) | $ (19,840) | $ (21,069) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 7,768 | 11,814 | 16,637 |
Stock-based compensation | 854 | 781 | 903 |
Impairment of intangible assets | 760 | 0 | 1,466 |
Provision for doubtful accounts, net of charge offs | 2,000 | 200 | 1,013 |
Provision for inventory obsolescence | 298 | 140 | 815 |
Gross profit from sale of lease pool equipment | (1,197) | (2,367) | (4,906) |
Loss on sale of business | 0 | 5,405 | 0 |
Deferred tax expense | 503 | (376) | (20) |
Non-current prepaid tax | 50 | 1,577 | 182 |
Changes in: | |||
Accounts receivable | (1,723) | 1,292 | 4,405 |
Unbilled revenue | (327) | (340) | 0 |
Inventories | (2,810) | (781) | 685 |
Accounts payable, accrued expenses and other current liabilities | (178) | (722) | (455) |
Prepaids expenses and other current assets, net | (506) | (1,382) | 1,002 |
Deferred revenue | (335) | 567 | 0 |
Foreign exchange losses net of gains | 313 | 171 | 61 |
Net assets held for sale | 0 | (1,596) | 0 |
Net cash (used in) provided by operating activities | (5,817) | (5,457) | 719 |
Cash flows from investing activities: | |||
Purchases of seismic equipment held for lease | (2,955) | (1,717) | (909) |
Acquisition of assets | 0 | (3,000) | 0 |
Purchases of property and equipment | (1,036) | (814) | (407) |
Sales of used lease pool equipment | 1,664 | 5,663 | 10,313 |
Sale of business, net of cash sold | 239 | (147) | 0 |
Net cash (used in) provided by investing activities | (2,088) | (15) | 8,997 |
Cash flows from financing activities: | |||
Net payments on revolving line of credit | 0 | 0 | (3,500) |
Payments on term loan and other borrowings | 0 | 0 | (2,807) |
Net proceeds from preferred stock offering | 3,773 | 6,853 | 4,174 |
Preferred stock dividends | (2,050) | (1,708) | (905) |
Proceeds from exercise of stock options | 26 | 0 | 0 |
Net cash provided by (used in) financing activities | 1,749 | 5,145 | (3,038) |
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash | (159) | (270) | (43) |
Net increase (decrease) in cash and cash equivalents including cash classified within current assets held for sale | 0 | 458 | 0 |
Less: Net increase (decrease) in cash classified within current assets held for sale | 0 | (458) | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (6,315) | (597) | 6,635 |
Cash, cash equivalents and restricted cash, beginning of period | 9,549 | 10,146 | 3,511 |
Cash, cash equivalents and restricted cash, end of period | $ 3,234 | $ 9,549 | $ 10,146 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Going Concern — These consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As discussed in Note 3, the Company has a history of losses, has had negative cash from operating activities in the last two years and may not have access to sources of capital that were available in prior periods. In addition, the COVID-19 pandemic and the decline in oil prices subsequent to January 31, 2020 have created significant uncertainty and could have a material adverse effect on the Company’s business, financial position, results of operations and liquidity. Accordingly, substantial uncertainty has arisen regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result should the Company not be able to continue as a going concern. Organization —Mitcham Industries, Inc., a Texas corporation (the “Company”), was incorporated in 1987. The Company, through its wholly owned subsidiary, Seamap International Holdings Pte, Ltd. (“Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in New Hampshire, USA, Singapore and the United Kingdom. The Company, through its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), its wholly owned Singaporean subsidiary, Mitcham Marine Leasing Pte. Ltd. (“MML”), and its branch operations in Colombia, provides full-service equipment leasing, sales and service to the seismic industry worldwide. All intercompany transactions and balances have been eliminated in consolidation. During August 2018, the Company completed the sale of its wholly owned Russian subsidiary, Mitcham Seismic Eurasia (“MSE”) and no longer operates within Russia. During February 2019, the Company completed the sale of its wholly owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. (“SAP”) (see Note 22 - “Sale of Subsidiaries” for additional details related to this transaction). Revenue Recognition of Leasing Arrangements —The Company leases various types of seismic equipment to seismic data acquisition companies. All leases at January 31, 2020 , 2019 and 2018 are for one year or less. Lease revenue is recognized ratably over the term of the lease. The Company does not enter into leases with embedded maintenance obligations. The standard lease provides that the lessee is responsible for maintenance and repairs to the equipment, excluding normal wear and tear. The Company occasionally provides technical advice to its customers without additional compensation as part of its customer service practices. Repairs or maintenance performed by the Company is charged to the lessee, generally on a time and materials basis. Repair and maintenance revenue are recognized as incurred. Revenue Recognition of Equipment Sales —Revenues and cost of sales from the sale of equipment are recognized upon acceptance of terms and when delivery has occurred, unless there is a question as to collectability. In cases where the equipment sold is manufactured by others, the Company reports revenues at gross amounts billed to customers because the Company: (a) is the obligor in the sales arrangement; (b) has full latitude in pricing the product for sale; (c) has general inventory risk should there be a problem with the equipment being sold to the customer or if the customer does not complete payment for the items purchased; (d) has discretion in supplier selection if the equipment ordered is not unique to one manufacturer; and (e) assumes credit risk for the equipment sold to its customers. Revenue Recognition of Long-term Projects —From time to time, Klein enters into contracts whereby they assemble and sell certain marine equipment, primarily to governmental entities. Performance under these contracts generally occurs over a period of several months. Revenue Recognition of Service Agreements —Seamap provides on-going support services pursuant to contracts that generally have a term of 12 months . The Company recognizes revenue from these contracts ratably over the term of the contract. In some cases, the Company will provide support services on a time and material basis. Revenue from these arrangements is recognized as the services are provided. For certain new systems that Seamap sells, the Company provides support services for up to 12 months at no additional charge. Any amounts attributable to these support obligations are immaterial. Revenues from service contracts for each of the three months ended January 31, 2020 were not material. Due to immateriality, service revenues are not presented separately in the financial statements. Allowance for Doubtful Accounts —Trade receivables are uncollateralized customer obligations due under normal trade terms. The carrying amount of trade receivables and contracts receivable is reduced by a valuation allowance that reflects management’s estimate of the amounts that will not be collected, based on the age of the receivable, payment history of the customer, general industry conditions, general financial condition of the customer and any financial or operational leverage the Company may have in a particular situation. Amounts are written-off when collection is deemed unlikely. Past due amounts are determined based on contractual terms. The Company generally does not charge interest on past due accounts. Cash and Cash Equivalents —The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Short-term Investments— The Company considers all highly liquid investments with an original maturity greater than three months , but less than twelve months , to be short-term investments. Inventories —Inventories are stated at the lower of average cost (which approximates first-in, first-out) or market. An allowance for obsolescence is maintained to reduce the carrying value of any materials or parts that may become obsolete. Inventories are periodically monitored to ensure that the allowance for obsolescence covers any obsolete items. Seismic Equipment Lease Pool —Seismic equipment held for lease consists primarily of recording channels and peripheral equipment and is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the equipment, which are five to seven years for channel boxes and two to 10 years for other peripheral equipment. As this equipment is subject to technological obsolescence and wear and tear, no salvage value is assigned to it. The Company continues to lease seismic equipment after it has been fully depreciated if it remains in acceptable condition and meets acceptable technical standards. This fully depreciated equipment remains in fixed assets on the Company’s books. The Company removes from its books the cost and accumulated depreciation of fully depreciated assets that are not expected to generate future revenues. Property and Equipment —Property and equipment is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the related estimated useful lives. The estimated useful lives of equipment range from three to seven years . Buildings are depreciated over 30 years and property improvements are amortized over 10 years or the shorter of their useful life. Leasehold improvements are amortized over the shorter of the realized estimated useful life or the life of the respective leases. No salvage value is assigned to property and equipment. Intangible Assets —Intangible assets are carried at cost, net of accumulated amortization. Amortization is computed on the straight-line method (for customer relationships, the straight-line method is not materially different from other methods that estimate run off of the underlying customer base) over the estimated life of the asset. Proprietary rights, developed technology and amortizable tradenames are amortized over a 10 to 15 -year period. Customer relationships are amortized over an eight -year period. Patents are amortized over an eight to nine -year period. Impairment —The Company reviews its long-lived assets, including its amortizable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable . In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. The Company performs an impairment test on goodwill and indefinite lived assets on an annual basis. The Company performs a qualitative review to determine if it is more likely than not that the fair value of our reporting units is greater their carrying value. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the Company performs a quantitative assessment of fair value of the reporting unit. The quantitative reviews involve significant estimates on the part of management. Product Warranties —Seamap provide its customers warranties against defects in materials and workmanship generally for a period of three months after delivery of the product. Klein also provides its customers with similar warranties against defects in material and workmanship for an approximate twelve months period subsequent to delivery of the product. The Company maintains an accrual for potential warranty costs based on historical warranty claims. For the fiscal years ended January 31, 2020 , 2019 and 2018 , warranty expense was not material. Income Taxes —The Company accounts for income taxes under the liability method, whereby the Company recognizes deferred tax assets and liabilities which represent differences between the financial and income tax reporting basis of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidence, the likelihood that the deferred tax assets will be recovered from future taxable income. The weight given to the potential effect of positive and negative evidence is commensurate with the extent to which it can be objectively verified. The preponderance of negative or positive evidence supports a conclusion regarding the need for a valuation allowance for some portion, or all, of the deferred tax asset. The more significant types of evidence considered include the following: • projected taxable income in future years; • our history of taxable income within a particular jurisdiction; • any history of deferred tax assets expiring prior realization; • whether the carry forward period is so brief that it would limit realization of tax benefits; • other limitations on the utilization of tax benefits; • future sales and operating cost projections that will produce more than enough taxable income to realize the deferred tax asset based on existing sales prices and cost structures; • our earnings history exclusive of the loss that created the future deductible amount coupled with evidence indicating that the loss is an aberration rather than a continuing condition; and • tax planning strategies that will create additional taxable income. Use of Estimates —The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the allowance for doubtful accounts, lease pool valuations, valuation allowance on deferred tax assets, the evaluation of uncertain tax positions, estimated depreciable lives of fixed assets and intangible assets, impairment of fixed assets and intangible assets, valuation of assets acquired and liabilities assumed in business combinations and the valuation of stock options. Future events and their effects cannot be perceived with certainty. Accordingly, these accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results could differ from these estimates. Substantial judgment is necessary in the determination of the appropriate levels for the Company’s allowance for doubtful accounts because of the extended payment terms the Company often offers to its customers and the limited financial wherewithal of certain of these customers. As a result, the Company’s allowance for doubtful accounts could change in the future, and such change could be material to the financial statements taken as a whole. The Company must also make substantial judgments regarding the valuation allowance on deferred tax assets and with respect to quantitative analysis prepared in conjunction with impairment analysis related to goodwill and other intangible assets. Fair Value of Financial Instruments — The Company’s financial instruments consist of accounts and contracts receivable and accounts payable. The Financial Accounting Standards Board (“FASB”) has issued guidance on the definition of fair value, the framework for using fair value to measure assets hierarchy, which prioritizes the inputs used to measure fair value. These tiers include: • Level 1: Defined as observable inputs such as quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2: Defined as pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current and contractual prices for the underlying instruments, as well as other relevant economic measures. • Level 3: Defined as pricing inputs that are unobservable form objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. The Company measures the fair values of goodwill, intangibles and other long-lived assets on a recurring basis if required by impairment tests applicable to these assets. The Company utilized Level 3 inputs to value goodwill, intangibles and other long-lived assets as of January 31, 2020 . See Notes 10 and 11 to our consolidated financial statements. Foreign Currency Translation —All balance sheet accounts of the Canadian, Australian and United Kingdom resident subsidiaries have been translated at the current exchange rate as of the end of the accounting period. Statements of operations items have been translated at average currency exchange rates. The resulting translation adjustment is recorded as a separate component of comprehensive income within shareholders’ equity. Stock-Based Compensation —Stock-based compensation expense is recorded based on the grant date fair value of share-based awards. Restricted stock awards are valued at the closing price on the date of grant. Determining the grant date fair value for options requires management to make estimates regarding the variables used in the calculation of the grant date fair value. Those variables are the future volatility of our common stock price, the length of time an optionee will hold their options until exercising them (the “expected term”), and the number of options that will be forfeited before they are exercised (the “forfeiture rate”). We utilize various mathematical models in calculating the variables. Share-based compensation expense could be different if we used different models to calculate the variables. Earnings Per Share —Net income (loss) per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income (loss) per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method, from unvested shares of restricted stock using the treasury stock method and from outstanding common stock warrants. For the fiscal years ended January 31, 2020 , 2019 and 2018 , the following table sets forth the number of potentially dilutive shares that may be issued pursuant to options, restricted stock and warrants outstanding used in the per share calculations. Years Ended January 31, 2020 2019 2018 (in thousands) Stock options 79 96 77 Restricted stock 3 11 32 Total dilutive shares 82 107 109 For the fiscal years ended January 31, 2020 , 2019 and 2018 , respectively, potentially dilutive common shares, underlying stock options and unvested restricted stock were anti-dilutive and were therefore not considered in calculating diluted loss per share for those periods. Reclassifications —Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the results of operations or comprehensive income. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances. Any transition impact will be a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period and early adoption is permitted. The Company adopted this ASU as of February 1, 2019. The adoption of ASU No. 2018-07 did not have a material effect on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, to simplify impairment testing of goodwill and other intangible assets by eliminating step two of the impairment test. The Company adopted the provisions of ASU 2017-04 as of January 31, 2018. The adoption of ASU 2017-04 did not have a material effect on the Company’s condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, to require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted the provisions of ASU No. 2016-18 as of February 1, 2017. The adoption of ASU No. 2016-18 did not have a material effect on the Company’s condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company adopted the provisions of ASU No. 2016-15 as of February 1, 2018. The adoption of ASU No. 2016-15 did not have a material effect on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation -Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new standard as of February 1, 2017, utilizing the prospective transition method. As a result, the Company now recognizes all excess tax charges or benefits as income tax expense or benefit in the accompanying Consolidated Statements of Operations and in the accompanying Consolidated Statements of Cash Flows as operating activities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Qualitative and quantitative disclosures are required, and optional practical expedients may be elected. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period. Subsequent amendments to the initial guidance have been issued in January 2017, January 2018, and July 2018 within ASU No. 201703, ASU No. 2018-01, ASU No. 2018-10, and ASU No. 2018-11 regarding qualitative disclosures, optional practical expedients, codification improvements and an optional transition method to adopt with a cumulative-effect adjustment versus a modified retrospective approach. These updates do not change the core principle of the guidance under ASU No. 2016-02, but rather provide implementation guidance. The Company adopted the accounting standard as of February 1, 2019, using the cumulative-effect transition method, which applies the guidance at the beginning of the period of adoption. The Company elected the package of practical expedients permitted, which, among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company made the accounting policy elections to not recognize lease assets and lease liabilities with an initial term of 12 months or less and to not separate lease and non-lease components. The impact of adoption on the Company’s consolidated balance sheet was the recognition of a ROU asset of $3.0 million and an operating lease liability of $3.0 million, primarily for office and shop space leases that are currently off-balance sheet. The adoption did not have a material impact on its results of operations nor any material impact on its cash flows. In July 2015, the FASB issued ASU No. 2015-11, Inventory: (Topic 330) , to provide guidance on measurement of inventory. ASU 2015-11 requires that inventories utilizing the first-in, first-out (FIFO) method be measured at lower of cost or net realizable value. The Company has adopted the provisions of ASU 2015-11 as of February 1, 2017. The adoption of ASU 2015-11 did not have an impact on the Company’s consolidated financial statements as the Company’s inventory is determined using the average cost and standard cost methods. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 was later amended by ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2014-09, as amended, (the “New Revenue Standard”) supersedes most industry specific guidance and intends to enhance comparability of revenue recognition practices across entities and industries by providing a principle-based, comprehensive framework for addressing revenue recognition issues. The Company adopted the New Revenue Standard as of February 1, 2018 using the modified retrospective method. The adoption of the New Revenue Standard did not have a material impact on the Company’s consolidated financial statements. |
Subsequent Events and Liquidity
Subsequent Events and Liquidity | 12 Months Ended |
Jan. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events and Liquidity | Subsequent Events and Liquidity The COVID-19 pandemic has created significant uncertainty in the global economy which could have a material adverse effect on the Company’s business, financial position, results of operations and liquidity. The time frame for which disruptions related to the pandemic will continue is uncertain as is the magnitude of any adverse impacts. We were required to temporarily shut-down our facilities in Malaysia and Singapore on March 17 and April 7, respectively. Although both locations have now reopened for limited operations, they are not yet operating at full capacity. Our other facilities have been allowed to operate, although at reduced efficiencies as certain employees have worked remotely. Management believes that any negative impacts will be temporary, but there can be no assurance of that. Additionally, oil prices have declined sharply during the first quarter of 2020 and continuing in the second quarter in response to the economic effects of the COVID-19 pandemic and the recent announcement of Saudi Arabia’s abandonment of output restraints. This decline could have an adverse effect on our customers in the energy industry, which could in turn cause them to cancel or delay projects and orders with us and could impair their ability to make payments to us. The Company has a history of losses, has had negative cash from operating activities in each of the last two years and its cash balance as of January 31, 2020 is significantly lower than at January 31, 2019. For the past three years, the Company has generated significant cash from the sale of preferred stock pursuant to an “at the market” program. That program has been completed and no further preferred shares can be sold pursuant to it. Furthermore, the amount of authorized preferred stock available for other financing transactions is limited. While the Company has plans to increase the authorized shares, such increase requires shareholder approval and there can be no assurance such approval will be obtained. The above factors create substantial uncertainty regarding the Company’s future financial results and liquidity. Management has identified the following mitigating factors regarding adequate liquidity and capital resources to meet its obligations.: • The Company has no funded debt or other outstanding obligations, outside of normal trade obligations. • The Company has no obligations or agreements containing “maintenance type” financial covenants. • The Company has working capital of approximately $22.2 million as of January 31, 2020, including cash of approximately $3.2 million. • Should revenues be less than projected, the Company believes it is able, and has plans, to reduce costs proportionately in order to maintain positive cash flow. • The majority of the Company’s costs are variable in nature, such as raw materials and personnel related costs. The Company has already terminated or furloughed certain employees and contractors. • Despite the temporary suspension of operations in Malaysia and Singapore, operations have continued uninterrupted at other locations. Certain of these operations have been deemed “essential businesses” by authorities. There can be no assurance that there will not be further suspensions in the future. • The Company has a backlog of orders of approximately $8.9 million as of January 31, 2020 that is primarily related to customers not engaged in the energy industry. Production for certain of these orders was in process and included in inventory as of January 31, 2020, thereby reducing the liquidity needed to complete the orders. • There are various government sponsored grant or loan programs, both in the United States and in certain foreign locations which are available to the Company and for which the Company has applied. Although the initial funding for one such program has been depleted, the Company has pending applications for approximately $1.6 million in government sponsored loans. Management believes additional funding will become available for these programs. • Despite the present difficulties in world energy markets, Management believes there are opportunities sell assets such as lease pool equipment and have completed such transactions recently. • The Company has declared the quarterly dividend on the its Series A Preferred Stock for the quarter ending April 30, 2020, but such quarterly dividends could be suspended in the future. • Based on publicized transactions and inquiries received from potential funding sources, Management believes that other sources of debt and equity financing are available should the need arise. Notwithstanding the mitigating factors identified by management, there remains substantial uncertainty regarding the Company's ability to meet its obligations as they arise over the next twelve months. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customers | Revenue from Contracts with Customers Effective February 1, 2018 the Company adopted the New Revenue Standard using the modified retrospective method applied to those contracts which were not completed as of February 1, 2018. Results for reporting periods beginning after January 31, 2018 are presented under Topic 606. Under the New Revenue Standard, revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company has determined that the New Revenue Standard applies to contracts performed by the businesses in our Marine Technology Products segment, but not to contracts performed by our Equipment Leasing segment which are within the scope of other revenue recognition standards. The impact of adopting the New Revenue Standard was not material, as the analysis of our contracts under the New Revenue Standard supported the recognition of revenue at a point in time for the majority of our contracts, consistent with our historic revenue recognition model. As a result, the Company did not record an adjustment to opening retained earnings as a result of the adoption of the New Revenue Standard. The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition: Twelve Months Ended January 31, 2020 2019 Revenue recognized at a point in time: (in thousands) Seamap $ 21,270 $ 15,213 Klein 7,468 6,515 SAP 101 3,264 Total revenue recognized at a point in time $ 28,839 $ 24,992 Revenue recognized over time: Seamap $ 733 $ 776 Klein — — SAP — — Total revenue recognized over time 733 776 Total revenue from contracts with customers $ 29,572 $ 25,768 The revenue from products manufactured and sold by our Seamap and Klein businesses, as well as the revenue from products marketed and sold by our SAP business, is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. Our Seamap business also provides annual Software Maintenance Agreements (“SMA”) to customers who have an active license for software imbedded in Seamap products. The revenue from SMA is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract. The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers: Twelve Months Ended January 31, 2020 2019 Revenue from contracts with customers: (in thousands) United States $ 3,920 $ 2,690 Europe, Russia & CIS 15,262 11,858 Middle East & Africa 1,576 1,243 Asia-Pacific 5,030 8,900 Canada & Latin America 3,784 1,077 Total revenue from contracts with customers $ 29,572 $ 25,768 As of January 31, 2020, contract assets and liabilities consisted of the following: January 31, 2020 January 31, 2019 Contract Assets: (in thousands) Unbilled revenue-current $ 13 $ 340 Unbilled revenue - non-current — — Total unbilled revenue $ 13 $ 340 Contract Liabilities: Deferred revenue & customer deposits - current $ 220 $ 556 Deferred revenue & customer deposits - non-current 12 11 Total deferred revenue & customer deposits $ 232 $ 567 Considering the products manufactured and sold by the businesses in our Marine Technology Products segment and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a three to six -month period . Pursuant to practical expedients and exemptions included in the New Revenue Standard, sales and transaction-based taxes are excluded from revenue. Also, we do not disclose the value of unsatisfied performance obligations for contacts with an original expected duration of one year or less. Additionally, we expense costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses. |
Acquisition of Assets
Acquisition of Assets | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition of Assets | Acquisition of Assets In February 2018 the Company completed the acquisition of intellectual property and certain other assets from Hydroscience Technologies, Inc. and Solid Seismic LLC (collectively “Hydroscience”). Hydroscience designed, manufactured and sold marine sensors and solid streamer technology products primarily for the hydrographic and seismic industries. In April 2017, Hydroscience filed for bankruptcy protection. Mitcham acquired the assets pursuant to an Asset Purchase Agreement and Sale Order (collectively the “Agreement”) that were approved by the bankruptcy court on January 31, 2018. Under the terms of the Agreement, Mitcham acquired certain specified intangible and tangible assets free and clear of all prior claims and encumbrances, and assumed no liabilities, contracts or prior warranty obligations. Details of the purchase price and the allocation of the purchase price to the assets acquired are as follows (in thousands): Purchase Price: Cash $ 3,000 Release of claims against Hydroscience 1,144 Transaction costs 312 Total purchase price $ 4,456 Allocation of purchase price: Inventory $ 206 Tangible assets (mainly manufacturing equipment) 350 Intangible assets (including patents, designs & software) 3,900 Total purchase price $ 4,456 The cash portion of the purchase price and other related costs were financed with the sale of 174,046 shares of our 9% Series A Cumulative Preferred Stock to MHI for $4.0 million . |
Supplemental Statements of Cash
Supplemental Statements of Cash Flows Information | 12 Months Ended |
Jan. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statements of Cash Flows Information | Supplemental Statements of Cash Flows Information Supplemental disclosures of cash flows information for the fiscal years ended January 31, 2020 , 2019 and 2018 were as follows (in thousands): Years Ended January 31, 2020 2019 2018 Interest paid $ 63 $ 8 $ 86 Income taxes paid, net 498 622 494 Seismic equipment purchases included in accounts payable at year-end 812 — 53 |
Inventories
Inventories | 12 Months Ended |
Jan. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): As of January 31, 2020 2019 Raw materials $ 7,388 $ 5,446 Finished goods 4,557 5,229 Work in progress 2,720 1,322 Cost of inventories 14,665 11,997 Less allowance for obsolescence (1,404 ) (1,223 ) Net inventories $ 13,261 $ 10,774 |
Accounts Receivables
Accounts Receivables | 12 Months Ended |
Jan. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivables | Accounts Receivables Accounts receivables consisted of the following (in thousands): As of January 31, 2020 As of January 31, 2019 Current Long-term Total Current Long-term Total Accounts receivable $ 15,975 $ 403 $ 16,378 $ 14,195 $ 712 $ 14,907 Less allowance for doubtful accounts (4,054 ) — (4,054 ) (2,113 ) — (2,113 ) Accounts receivable net of allowance for doubtful accounts $ 11,921 $ 403 $ 12,324 $ 12,082 $ 712 $ 12,794 As of January 31, 2020, the Company has structured payment agreements with two customers totaling $1.9 million and three customers totaling $3.0 million as of January 31, 2020 and 2019 , respectively. These structured payment agreements are collateralized by the equipment sold and allow the customer to pay monthly amounts for a time period less than one year. The balance of structured payment receivables bear interest at an average rate of 2.5% and 3.6% for January 31, 2020 and 2019 , respectively. The remaining repayment terms range from zero to eighteen months as of January 31, 2020 . |
Seismic Equipment Lease Pool an
Seismic Equipment Lease Pool and Property and Equipment | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Seismic Equipment Lease Pool and Property and Equipment | Seismic Equipment Lease Pool and Property and Equipment Seismic equipment lease pool and property and equipment consisted of the following (in thousands) As of January 31, 2020 2019 Recording channels $ 80,378 $ 84,207 Other peripheral equipment 64,756 63,312 Cost of seismic equipment lease pool 145,134 147,519 Land and buildings 4,274 4,041 Furniture and fixtures 10,530 9,897 Autos and trucks 561 571 Cost of property and equipment 15,365 14,509 Cost of seismic equipment lease pool and property and equipment 160,499 162,028 Less accumulated depreciation (146,722 ) (147,873 ) Net book value of seismic equipment lease pool and property and equipment $ 13,777 $ 14,155 As of January 31, 2020 and 2019 , the Company completed an annual review of long-lived assets by comparing undiscounted future cash flows to be generated by our lease pool assets to the carrying value of our lease pool assets noting that the undiscounted future cash flows exceeded the carrying value. Therefore, and no impairment has been recorded. Location of seismic equipment lease pool and property and equipment (in thousands): As of January 31, 2020 2019 United States $ 5,400 $ 1,566 Europe 4,110 5,564 Canada 1,136 93 Latin America 1,170 1,365 Singapore 773 4,496 Malaysia 1,188 1,071 Net book value of seismic equipment lease pool and property and equipment $ 13,777 $ 14,155 |
Leases
Leases | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which was modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20 (collectively the “New Lease Standard”). The New Lease Standard requires organizations that lease assets (“lessees”) to recognize the assets and liabilities of the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The New Lease Standard also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The New Lease Standard was effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). ASU 2018-11 provided additional relief in the comparative reporting requirements for initial adoption of the New Lease Standard. Prior to ASU 2018-11, a modified retrospective transition was required for financing or operating leases existing at or entered after the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 provided an additional transition method allowing entities to initially apply the New Lease Standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. The Company adopted the New Lease Standard effective February 1, 2019. We elected to apply the current period transition approach as introduced by ASU 2018-11 and we elected to apply the following practical expedients and accounting policy decisions. We elected a package of transition expedients, which must be elected together, that allowed us to forgo reassessing certain conclusions reached under ASC 840. All expedients in this package were applied together for all leases that commenced before the effective date, February 1, 2019, of the adoption of the New Lease Standard. As a result, in transitioning to the New Lease Standard, for existing leases as of February 1, 2019, we continued to use judgments made under ASC 840 related to embedded leases, lease classification and accounting for initial direct costs. In addition, we have chosen, as an accounting policy election by class of underlying asset, not to separate non-lease components from the associated lease for all our leased asset classes, excluding for Real Estate related leases. As a result, for classes of Automobiles, Office Equipment and Manufacturing Equipment, we account for each separate lease component and the non-lease components associated with that lease as a single lease component. The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Hungary, Singapore, Malaysia, Colombia, United Kingdom and Canada. Adoption of the New Lease Standard did have a material impact on our consolidated balance sheet as we recorded right-of-use assets and the corresponding lease liabilities related to our operating leases of approximately $3.0 million , each. The Company determined to treat lease costs with an original maturity of less than one year as short-term lease costs and did not record a right-of-use asset or related lease liability for these leases. The new standard did not have a material impact on our consolidated statements of operations or our statements of cash flows. Lease expense for the twelve months ended January 31, 2020 was approximately $1.2 million and was recorded as a component of operating loss. Included in these costs was short-term lease expense of approximately $30,000 for the twelve months ended January 31, 2020. Supplemental balance sheet information related to leases as of January 31, 2020 was as follows (in thousands): Lease January 31, 2020 Impact of ASC 842 Transition Assets Operating lease assets $ 2,300 $ 2,710 Liabilities Operating lease liabilities $ 2,300 $ 2,710 Classification of lease liabilities Current liabilities $ 1,339 Non-current liabilities 961 Total Operating lease liabilities $ 2,300 Lease-term and discount rate details as of January 31, 2020 were as follows: Lease term and discount rate January 31, 2020 Weighted average remaining lease term (years) Operating leases 1.76 Weighted average discount rate: Operating leases 9.27 % The incremental borrowing rate was calculated using the Company’s weighted average cost of capital. Supplemental cash flow information related to leases was as follows (in thousands): Lease Twelve Months Ended January 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (1,182 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 635 Maturities of lease liabilities at January 31, 2020 were as follows (in thousands): January 31, 2020 2021 $ 1,338 2022 838 2023 222 2024 98 2025 52 Thereafter 21 Total payments under lease agreements $ 2,569 Less: imputed interest (269 ) Total lease liabilities $ 2,300 The Company leases seismic equipment to customers under operating leases with non-cancelable terms of one year or less. These leases are generally renewable on a month-to-month basis. All taxes (other than income taxes) and assessments are the contractual responsibility of the lessee. To the extent that foreign taxes are not paid by the lessee, the relevant foreign taxing authorities might seek to collect such taxes from the Company. Under the terms of its lease agreements, any amounts paid by the Company to such foreign taxing authorities may be billed and collected from the lessee. The Company is not aware of any foreign tax obligations as of January 31, 2020 and 2019 that are not reflected in the accompanying consolidated financial statements. The Company leases seismic equipment, as well as other equipment from others under operating leases. Lease expense incurred by the Company in connection with such leases amounted to approximately $2.5 million , $1.9 million and $774,000 for the fiscal years ended January 31, 2020 , 2019 and 2018 , respectively. The Company leases its office and warehouse facilities in Canada, Texas, Singapore, United Kingdom, Hungary, Colombia and Malaysia under operating leases. Facility lease expense for the fiscal years ended January 31, 2020 , 2019 and 2018 was approximately $1.2 million , $1.3 million and $1.2 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Weighted Average Life at 1/31/20 January 31, 2020 January 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount (in thousands) (in thousands) Goodwill $ 7,060 $ — $ (4,529 ) $ 2,531 $ 7,060 $ — $ (4,529 ) $ 2,531 Proprietary rights 7.0 $ 9,293 $ (4,971 ) — 4,322 $ 9,303 $ (4,292 ) — 5,011 Customer relationships 1.8 5,024 (3,831 ) — 1,193 5,024 (3,147 ) — 1,877 Patents 4.5 2,440 (1,277 ) — 1,163 2,441 (1,028 ) — 1,413 Trade name 6.3 894 (63 ) (760 ) 71 894 (52 ) — 842 Developed technology 5.9 1,430 (584 ) — 846 1,430 (441 ) — 989 Other 4.3 653 (87 ) — 566 385 (22 ) — 363 Amortizable intangible assets $ 19,734 $ (10,813 ) $ (760 ) $ 8,161 $ 19,477 $ (8,982 ) $ — $ 10,495 As of January 31, 2020 , the Company completed its annual review of goodwill and indefinite lived intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the fair value of our Seamap reporting unit was greater than its carrying value. Based on a review of qualitative and quantitative factors it was determined it was more likely than not that the fair value of our Klein reporting unit was not greater than its carrying value. Accordingly, we recorded an impairment of approximately $760,000 related to indefinite lived intangible assets in the Klein reporting unit. As of January 31, 2019 , the Company completed its annual review of goodwill and indefinite lived intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the fair value of our Seamap and Klein reporting units were greater than their carrying values. On January 31, 2018 , the Company completed an annual review of goodwill. Based on a review of qualitative factors it was determined it was more likely than not that the fair value of our Seamap reporting unit was greater than its carrying value. Based on a review of qualitative and quantitative factors it was determined it was more likely than not that the fair value of our Klein reporting unit was not greater than its carrying value. Accordingly, we recorded an impairment of approximately $1.5 million related to goodwill in the Klein reporting unit. Aggregate amortization expense was $1.8 million , $1.8 million and $1.5 million for the fiscal years ended January 31, 2020 , 2019 and 2018 , respectively. As of January 31, 2020 , future estimated amortization expense related to amortizable intangible assets is estimated to be (in thousands): For fiscal years ending January 31: 2021 $ 1,733 2022 1,256 2023 1,088 2024 976 2025 746 Thereafter 2,362 Total $ 8,161 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of January 31, 2020 2019 Contract settlement $ 228 $ 219 Wages and benefits 373 596 Customer deposits 376 701 Accrued inventory 229 447 Other 2,246 1,775 Accrued Expenses and Other Liabilities $ 3,452 $ 3,738 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The Company has 1,000,000 shares of preferred stock authorized. The preferred stock may be issued in multiple series with various terms, as authorized by the Company’s Board of Directors. As of January 31, 2020, 994,046 shares of the Series A Preferred Stock were outstanding, and 830,372 shares were outstanding as of January 31, 2019. Dividends on the Series A Preferred Stock are cumulative from the date of original issue and payable quarterly on or about the last day of January, April, July and October of each year when, as and if, declared by the Company’s board of directors. Dividends are payable out of amounts legally available therefor at a rate equal to 9.00% per annum per $25.00 of stated liquidation preference per share, or $2.25 per share of Series A Preferred Stock per year. The Company may not redeem the Series A Preferred Stock before June 8, 2021, except as described below. On or after June 8, 2021, the Company may redeem, at the Company’s option, the Series A Preferred Stock, in whole or in part, at a cash redemption price of $25.00 per share, plus all accrued and unpaid dividends to, but not including, the redemption date. If at any time a change of control occurs, the Company will have the option to redeem the Series A Preferred Stock, in whole or in part, within 120 days after the date on which the change of control occurred by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or other mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the Company or converted into our common stock in connection with a change of control. Holders of the Series A Preferred Stock generally have no voting rights except for limited voting rights if dividends payable on the outstanding Series A Preferred Stock are in arrears for six or more consecutive or non-consecutive quarterly dividend periods, or if the Company fails to maintain the listing of the Series A Preferred Stock on a national securities exchange for a period continuing for more than 180 days . The Company has 20,000,000 shares of common stock authorized, of which 14,097,000 and 14,049,000 were issued as of January 31, 2020 and 2019 , respectively. During the fiscal years ended January 31, 2020 , and 2019 there were no shares surrendered in exchange for payment of taxes due upon vesting of restricted shares. During fiscal year ended January 31, 2018 , approximately 359 shares were surrendered in exchange for payment of taxes due upon the vesting of restricted shares. The fiscal year ended January 31, 2018 shares had an average fair value of $4.79 . |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Jan. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transaction On October 7, 2016, the Company entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. (the “Agent”). On December 18, 2019, the Company and Agent entered into an Amended and Restated equity distribution agreement (the “Equity Distribution Agreement”). Pursuant to the Equity Distribution Agreement, the Company may sell up to 500,000 shares of the Series A Preferred Stocked through the Agent through an at the market (“ATM”) offering program. Under the Equity Distribution Agreement, the Agent will be entitled to compensation of up to 2.0% of the gross proceeds from the sale of Series A Preferred Stock under the ATM program. For the twelve months ended January 31, 2020 , the Company issued 163,674 shares of Series A Preferred Stock under the ATM offering program. Gross proceeds from these sales were approximately $3.9 million and the Agent received compensation of approximately $78,935 , resulting in net proceeds to the Company of $3.9 million for the twelve months ended January 31, 2020 . For the three months ended January 31, 2020 , the Company issued 66,436 shares of Series A Preferred stock under the ATM offering program. Gross proceeds from these sales were approximately $1.6 million and the Agent received compensation of approximately $31,902 , resulting in net proceeds to the Company of $1.6 million for the three months ended January 31, 2020 . The Co-Chief Executive Officer and Co-President of Ladenburg Thalmann & Co. Inc is the Non-Executive Chairman of the Company’s board of directors. The Non-Executive Chairman of the Company received no portion of this compensation. At January 31, 2020 , the Company has an outstanding obligation payable to the beneficiary of the estate of our former CEO. The obligation, which bears interest at 4% per annum, totals approximately $1.2 million , of which approximately $967,000 is classified as long-term on the Company’s Consolidated Balance Sheet as of January 31, 2020 . |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Years Ended January 31, 2020 2019 2018 (in thousands) (Loss) income before income taxes is attributable to the following jurisdictions: Domestic $ (12,808 ) $ (6,025 ) $ (12,246 ) Foreign 2,399 (13,563 ) (7,913 ) Total $ (10,409 ) $ (19,588 ) $ (20,159 ) The components of income tax expense (benefit) were as follows: Current: Domestic $ 27 $ 9 $ (225 ) Foreign 582 619 1,156 609 628 931 Deferred: Domestic — — (36 ) Foreign 269 (376 ) 15 269 (376 ) (21 ) Income tax expense $ 878 $ 252 $ 910 The following is a reconciliation of expected to actual income tax expense: Years Ended January 31, 2020 2019 2018 (in thousands) Federal income tax at 21%, 21%, 32.9%, respectively $ (2,186 ) $ (4,113 ) $ (6,632 ) Changes in tax rates 631 — 7,257 Permanent differences 101 (148 ) 3,356 Foreign effective tax rate differential (197 ) 60 1,163 Foreign withholding taxes, foreign branch taxes, including penalties and interest 403 431 716 Tax effect of book loss on disposition of subsidiaries 69 1,271 — Valuation allowance on deferred tax assets 1,719 2,249 (5,765 ) Excess tax deficiency for share-based payments under ASU 2016-09 284 663 309 Other 54 (161 ) 506 $ 878 $ 252 $ 910 The components of the Company’s deferred taxes consisted of the following: As of January 31, 2020 2019 (in thousands) Deferred tax assets: Net operating losses $ 17,978 $ 16,696 Tax credit carry forwards 724 675 Stock option book expense 650 781 Allowance for doubtful accounts 776 329 Allowance for inventory obsolescence 570 480 Accruals not yet deductible for tax purposes 357 418 Fixed assets 851 1,255 Intangible assets 337 — Other 954 876 Gross deferred tax assets 23,197 21,510 Valuation allowance (23,197 ) (21,407 ) Deferred tax assets — 103 Deferred tax liabilities: Intangible assets — (35 ) Other (200 ) — Deferred tax liabilities (200 ) (35 ) Unrecognized tax benefits — — Total deferred tax (liabilities) assets, net (200 ) $ 68 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company is currently evaluating the impact of the CARES Act and believes, based on preliminary analysis, that the legislation will not have a material impact on the Company’s future income tax expense or the related tax assets and liabilities. On December 22, 2017, the United States enacted legislation commonly known as the TCJA. The TCJA contains (i) significant changes to corporate taxation, including reduction of the highest corporate tax rate from 35% to 21%, (ii) limitations on the deductibility of interest expense, business entertainment expenses, and executive compensation, and (iii) significant changes to U.S. international taxation, including a one-time repatriation tax on undistributed earnings of foreign subsidiaries, the exemption from U.S. tax of certain foreign earnings upon their distribution to U.S. corporate shareholders, and the addition of a base erosion and anti-abuse tax. The Company’s effective federal income tax rate was 21%, 21% and 32.9% for the fiscal year ended January 31, 2020 , 2019 and 2018 , respectively. The reduction in the effective federal income tax rate is due to the TCJA reducing the corporate rate to 21%, effective January 1, 2018. For fiscal 2018, the Company was required by U.S. generally accepted accounting principles to re-value its deferred tax assets and liabilities as a result of the reduction of the corporate tax rate to 21%. The change is required to be reported as of the date of enactment, with resulting tax effects accounted for in the reporting period of enactment. The impact of revaluation was a decrease of approximately $7.0 million in value of the Company’s U.S. deferred tax assets. The decrease in value of the U.S. deferred tax assets was directly offset by a corresponding reduction in the valuation allowance related to deferred tax assets. Therefore, no tax expense was recorded for fiscal year 2018 as a result of the change in the corporate tax rate. In fiscal 2018 the Company also recognized approximately $11.2 million of estimated U.S. taxable income due to the one-time repatriation of previously untaxed foreign earnings and profits imposed by the TCJA. The repatriated foreign earnings were reported as a permanent difference and were entirely offset by current year U.S. net operating losses. As a result, the one-time repatriation of foreign earnings did not result in a tax liability for the Company. As of January 31, 2019 , the Company classified SAP, its Australian subsidiary, as held for sale. Included in the assets held for sale were deferred tax assets totaling $1.5 million . These deferred tax assets were offset by a full valuation allowance resulting in a net zero balance in deferred tax assets classified as held for sale. The Company has determined that, due to fundamental shifts in its business strategy to emphasize its Marine Technology Products business and the potential requirement for additional investment and working capital to achieve its objectives, the undistributed earnings of foreign subsidiaries as of January 31, 2020 , should no longer be deemed indefinitely reinvested outside of the United States. Furthermore, the Company has concluded that any deferred taxes with respect to the undistributed foreign earnings would be immaterial, particularly in light of the one-time repatriation of foreign earnings imposed by the TCJA and recorded in fiscal 2018 . Therefore, the Company has not recorded a deferred tax liability associated with the undistributed foreign earnings as of January 31, 2020 . Included in deferred tax assets is approximately $700,000 related to stock-based compensation, including non-qualified stock options. A significant number of stock options expired during fiscal 2020 because the market price of the Company’s common stock remained below the exercise price of these options. Recent market prices for the Company’s common stock remain below the exercise price of a number of options outstanding as of January 31, 2020 . Should the market price of the Company’s common stock remain below the exercise price of the options, these stock options will expire without exercise. In accordance with the provisions of ASC 718-740-10, a valuation allowance has not been computed based on the decline in stock price. As of January 31, 2020 , the Company has recorded valuation allowances of approximately $23.2 million related to deferred tax assets. These deferred tax assets relate primarily to net operating loss carryforwards in the United States and other jurisdictions. The valuation allowances were determined based on management’s judgment as to the likelihood that the deferred tax assets would not be realized. The judgment was based on an evaluation of available evidence, both positive and negative. At January 31, 2020 , the Company had tax credit carry forwards of approximately $724,000 , which amounts can be carried forward through at least 2021 . As of January 31, 2020, 2019 and 2018 the company had no unrecognized tax benefits attributable to uncertain tax positions. The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. The Company prospectively adopted the provisions of ASU 2016-09 beginning February 1, 2017. Accordingly, all excess tax benefits and deficiencies related to employee share-based payments are recognized as income tax benefits or expense in the accompanying Consolidated Statement of Operations and in the accompanying Consolidated Statement of Cash Flows as operating activities. For fiscal 2020 , the excess tax deficiency for share-based payments recognized as tax expense was approximately $284,000 . The Company files U.S. federal income tax returns as well as separate returns for its foreign subsidiaries within their local jurisdictions. The Company’s U.S. federal tax returns are subject to examination by the IRS for fiscal years ended January 31, 2017 through 2020 . The Company’s tax returns may also be subject to examination by state and local revenue authorities for fiscal years ended January 31, 2015 through 2020 . The Company’s Canadian income tax returns are subject to examination by the Canadian tax authorities for fiscal years ended January 31, 2016 through 2020 . The Company’s tax returns in other foreign jurisdictions are generally subject to examination for the fiscal years ended January 31, 2015 through January 31, 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations —At January 31, 2020 , the Company had approximately $2.8 million in purchase orders outstanding. Customs and Performance Guarantees —As of January 31, 2020 , the Company had provided customs and performance guarantees totaling approximately $144,000 which, were secured by cash deposits to a banking institution. |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Option Plans | Stock Option Plans At January 31, 2020 , the Company had stock-based compensation plans as described in more detail below. The total compensation expense related to stock-based awards granted under these plans during the fiscal years ended January 31, 2020 , 2019 and 2018 was approximately $854,000 , $781,000 and $903,000 , respectively. The Company recognizes stock-based compensation costs net of a forfeiture rate for only those awards expected to vest over the requisite service period of the award. The Company estimates the forfeiture rate based on its historical experience regarding employee terminations and forfeitures. The fair value of each option award is estimated as of the date of grant using a Black-Scholes-Merton option pricing formula. Expected volatility is based on historical volatility of the Company’s stock over a preceding period commensurate with the expected term of the option. The expected term is based upon historical exercise patterns. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing formula since the Company does not pay dividends and has not paid any dividends since its incorporation. The weighted average grant-date fair value of options granted during the fiscal years ended January 31, 2020 , 2019 and 2018 were $1.77 , $1.80 and 2.02 respectively. The assumptions for the periods indicated are noted in the following table. Weighted average Black-Scholes-Merton fair value assumptions Years Ending January 31, 2020 2019 2018 Risk free interest rate 1.47 - 2.53% 2.51 - 2.75% 1.89 - 2.01% Expected life 3.98 - 6.00 yrs 4.00 - 6.86 yrs 4.87 - 6.87 yrs Expected volatility 49 - 51% 49 - 49% 42 - 47% Expected dividend yield 0.0% 0.0% 0.0% Cash flows resulting from tax benefits attributable to tax deductions in excess of the compensation expense recognized for those options (excess tax benefits) are classified as financing out-flows and operating in-flows. The Company had no excess tax benefits during the fiscal years ended January 31, 2020 , 2019 and 2018 . The Company has share-based awards outstanding under five different plans: the 1994 Stock Option Plan (“1994 Plan”), the 1998 Amended and Restated Stock Awards Plan (“1998 Plan”), the 2000 Stock Option Plan (“2000 Plan”), the Mitcham Industries, Inc. Stock Awards Plan (“2006 Plan”) and the 1994 Non-Employee Director Plan (“Director Plan”), (collectively, the “Plans”). Stock options granted and outstanding under each of the plans generally vest evenly over three years (except for the Director Plan, under which options generally vest after one year ) and have a 10 -year contractual term. The exercise price of a stock option generally is equal to the fair market value of the Company’s common stock on the option grant date. All Plans except for the 2006 Plan have been closed for future grants. All shares available but not granted under the 1998 Plan and the 2000 Plan as of the date of the approval of the 2006 Plan were transferred to the 2006 Plan. As of January 31, 2020 , there were approximately 1,050,000 shares available for grant under the 2006 Plan. The 2006 Plan provides for awards of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units and phantom stock. New shares are issued for restricted stock and upon the exercise of options. Stock Based Compensation Activity The following table presents a summary of the Company’s stock option activity for the fiscal year ended January 31, 2020 : Number of Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, January 31, 2019 2,163 $ 7.75 6.54 $ 526 Granted 640 3.96 Exercised (9 ) 2.80 Forfeited (88 ) 3.73 Expired (266 ) 29.86 Outstanding, January 31, 2020 2,440 $ 4.51 7.08 $ 20 Exercisable at January 31, 2020 1,461 $ 4.87 5.94 $ 15 Vested and expected to vest at January 31, 2020 2,400 $ 4.50 7.02 $ 20 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the fourth quarter of fiscal 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on January 31, 2020 . This amount changes based upon the market value of the Company’s common stock. There was no intrinsic value of the 9,000 options exercised during the fiscal year ended January 31, 2020 . No options were exercised during the fiscal years ended January 31, 2019 , and 2018 . The fair value of options that vested during the fiscal years ended January 31, 2020 , 2019 and 2018 was approximately $650,000 , $850,000 and $500,000 , respectively. For the fiscal year ended January 31, 2020 , approximately 335,000 options vested. As of January 31, 2020 , there was approximately $1.0 million of total unrecognized compensation expense related to unvested stock options granted under the Company’s share-based compensation plans. That expense is expected to be recognized over a weighted average period of 1.6 years . Restricted stock as of January 31, 2020 and changes during the fiscal year ended January 31, 2020 were as follows: Year Ended January 31, 2020 Number of Shares (in thousands) Weighted Average Grant Date Fair Value Unvested, beginning of period — $ — Granted 43 3.98 Vested (2 ) 3.98 Canceled (4 ) 3.98 Unvested, end of period 37 $ 3.98 As of January 31, 2020 , there was approximately no unrecognized stock-based compensation expense related to unvested restricted stock awards. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Marine Technology Products segment is engaged in the design, manufacture and sale of state-of-the-art seismic and offshore telemetry systems. Manufacturing, support and sales facilities are maintained in the UK, Singapore, Malaysia and New Hampshire, and Huntsville, Texas. The Equipment Leasing segment offers for lease or sale, new and “experienced” seismic equipment to seismic contractors in the oil and gas industry. The Equipment Leasing segment is headquartered in Huntsville, Texas, with sales and services offices in Calgary, Canada and Singapore. Financial information by business segment is set forth below net of any allocations (in thousands): As of January 31, 2020 As of January 31, 2019 As of January 31, 2018 Marine Technology Products Equipment Leasing Consolidated Marine Technology Products Equipment Leasing Consolidated Marine Technology Products Equipment Leasing Consolidated Fixed assets, net $ 4,791 $ 8,986 $ 13,777 $ 4,635 $ 9,534 $ 14,155 $ 3,790 $ 19,161 $ 22,900 Intangible assets, net 8,048 113 8,161 10,417 78 10,495 8,015 — 8,015 Goodwill 2,531 — 2,531 2,531 — 2,531 2,531 — 2,531 Total Assets 47,211 11,017 58,228 44,832 20,469 65,301 35,879 37,850 73,679 As of January 31, 2020 As of January 31, 2019 As of January 31, 2018 Marine Technology Products Equipment Leasing Corporate expenses Consolidated Marine Technology Products Equipment Leasing Corporate expenses Consolidated Marine Technology Products Equipment Leasing Corporate expenses Consolidated Revenues $ 29,572 $ 13,213 — $ 42,675 $ 25,768 $ 17,383 $ — $ 42,942 $ 27,572 $ 20,919 $ — $ 48,276 Interest expense, net 1 (47 ) — (46 ) — 72 — 72 (18 ) 65 — 47 Operating loss (2,259 ) (4,667 ) (3,471 ) (10,375 ) (3,780 ) (5,872 ) (3,375 ) (13,020 ) (2,572 ) (13,930 ) (3,211 ) (19,708 ) Capital expenditures 894 3,097 — 3,991 583 1,948 — 2,531 268 1,048 — 1,316 Depreciation and amortization expense 2,649 5,141 — 7,768 2,418 9,402 — 11,814 1,991 14,652 — 16,637 Approximately $110,000 , $209,000 and $216,000 related to sales from Marine Technology Products to the Equipment Leasing segment is eliminated in the consolidated revenues for the fiscal years ended January 31, 2020 , 2019 and 2018 , respectively. A reconciliation of operating income is as follows (in thousands): Years Ended January 31, 2020 2019 2018 Marine Technology Products $ (2,259 ) $ (3,780 ) $ (2,572 ) Equipment Leasing (4,667 ) (5,872 ) (13,930 ) Corporate Expenses (3,471 ) (3,375 ) (3,211 ) Reconciling items: Elimination of loss from inter-company sales 22 7 5 Consolidated operating income $ (10,375 ) $ (13,020 ) $ (19,708 ) |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Quarters Ended Fiscal Year April 30 July 31 October 31 January 31 Net revenues: 2020 $ 9,857 $ 8,898 $ 10,663 $ 13,257 2019 $ 7,613 $ 8,350 $ 14,651 $ 12,328 Gross profit: 2020 $ 3,741 $ 2,882 $ 4,051 $ 5,947 2019 $ 1,245 $ 1,860 $ 5,224 $ 3,411 Loss before income taxes: 2020 $ (2,360 ) $ (3,088 ) $ (1,968 ) $ (2,993 ) 2019 $ (5,468 ) $ (4,504 ) $ (5,440 ) $ (4,176 ) Incomes taxes (benefit): 2020 $ 55 $ 48 $ 60 $ 715 2019 $ 437 $ 85 $ (249 ) $ (21 ) Net loss: 2020 $ (2,415 ) $ (3,136 ) $ (2,028 ) $ (3,708 ) 2019 $ (5,905 ) $ (4,589 ) $ (5,191 ) $ (4,155 ) Loss per common share – basic: 2020 $ (0.24 ) $ (0.30 ) $ (0.21 ) $ (0.35 ) 2019 $ (0.52 ) $ (0.41 ) $ (0.47 ) $ (0.38 ) Loss per common share – diluted: 2020 $ (0.24 ) $ (0.30 ) $ (0.21 ) $ (0.35 ) 2019 $ (0.52 ) $ (0.41 ) $ (0.47 ) $ (0.38 ) |
Concentrations
Concentrations | 12 Months Ended |
Jan. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Credit Risk —As of January 31, 2020 , no customers exceeded 10% of consolidated accounts receivable. During fiscal year ended 2019 , one customer amounted to an aggregate of approximately $2.2 million . The Company maintains deposits and certificates of deposit with banks which may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit and money market accounts which are not FDIC insured. In addition, deposits aggregating approximately $2.3 million at January 31, 2020 are held in foreign banks. Management believes the risk of loss in connection with these accounts is minimal. Industry Concentration —The majority of the Company’s revenues are derived from seismic equipment leased and sold to companies providing seismic acquisition services. The seismic industry has historically been subject to cyclical activity and is dependent, in large part, on the expected future prices of oil and natural gas. Should the industry experience a decline in the price of oil and natural gas, the Company could be subject to significantly greater credit risk and declining demand for its products and services. Supplier Concentration —The Company purchases the majority of its seismic equipment for its lease pool from a small number of suppliers, each being an industry leader for its product. The Company believes that two of its suppliers manufacture most of the land-based seismic systems and equipment in use. The Company has satisfactory relationships with its suppliers. However, should those relationships deteriorate, the Company may have difficulty in obtaining new technology requested by its customers and maintaining the existing equipment in accordance with manufacturers’ specifications. |
Sales and Major Customers
Sales and Major Customers | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Sales and Major Customers | Sales and Major Customers A summary of the Company’s revenues from customers by geographic region, outside the U.S., is as follows (in thousands): Years Ended January 31, 2020 2019 2018 UK/Europe $ 20,366 $ 15,200 $ 11,835 Canada 3,731 2,049 807 Latin America 2,663 1,267 1,354 Asia/South Pacific 6,871 13,555 16,768 Eurasia 290 1,803 332 Other 1,942 2,723 5,834 Total $ 35,863 $ 36,597 $ 36,930 During the fiscal years ended January 31, 2020 and 2019 no individual customer exceeded 10% of total revenue. During fiscal year ended 2018 , two individual customers exceeded 10% of total revenues. |
Sale of Subsidiaries
Sale of Subsidiaries | 12 Months Ended |
Jan. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Subsidiaries | Sale of Subsidiaries In February 2019, the Company completed the sale of its wholly owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. for total contractual proceeds of approximately $660,000 U.S. dollars of which the Company received approximately $240,000 in cash at closing and an unsecured, non-interest bearing two -year note receivable in the amount of $420,000 . The agreement also included a working capital adjustment of approximately $114,000 payable to the Company. We received payment of the working capital adjustment in August of 2019. The note receivable was recorded as other non-current assets as of January 31, 2020. In August 2018, the Company completed the sale of its wholly owned Russian subsidiary, MSE, to an unrelated third party (the “Buyer”) for total contractual proceeds of approximately $1.2 million U.S. dollars. Our agreement with the Buyer stipulated a series of eight ( 8 ) payments totaling the contractual proceeds, plus interest accruing at a rate of 9% per annum, with the final payment to be received on or before August 31, 2019. Through January 31, 2020, the Buyer has made payments totaling approximately $705,000 . Although we did not receive all the stipulated payments before August 31, 2019, we are working with the Buyer and expect the balance of contractual proceeds, together with applicable interest, to be paid in full. The amounts due from Buyer were recorded in accounts receivable at January 31, 2020. As a result of the sale of MSE, the Company recorded a loss of approximately $4.9 million , including recognition of approximately $5.4 million of cumulative translation losses which had been historically recorded in Accumulated Other Comprehensive Loss, a component of equity. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II MITCHAM INDUSTRIES, INC. VALUATION AND QUALIFYING ACCOUNTS (in thousands) Col. A Col. B Col. C(1) Col. C(2) Col. D Col. E Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Describe Balance at End of Period Allowance for doubtful accounts January 31, 2020 $ 2,113 2,000 — (a) (59 ) (b) $ 4,054 January 31, 2019 $ 6,167 212 — (a) (4,266 ) (b) $ 2,113 January 31, 2018 $ 5,904 1,027 (23 ) (a) (741 ) (b) $ 6,167 Allowance for obsolete equipment and inventory January 31, 2020 $ 1,222 298 1 (a) (117 ) (c) $ 1,404 January 31, 2019 $ 1,675 132 (32 ) (a) (553 ) (c) $ 1,222 January 31, 2018 $ 952 989 20 (a) (286 ) (c) $ 1,675 (a) Represents translation differences. (b) Represents recoveries and uncollectible accounts written off. (c) Represents sale or scrap of inventory and obsolete equipment. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization —Mitcham Industries, Inc., a Texas corporation (the “Company”), was incorporated in 1987. The Company, through its wholly owned subsidiary, Seamap International Holdings Pte, Ltd. (“Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in New Hampshire, USA, Singapore and the United Kingdom. The Company, through its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), its wholly owned Singaporean subsidiary, Mitcham Marine Leasing Pte. Ltd. (“MML”), and its branch operations in Colombia, provides full-service equipment leasing, sales and service to the seismic industry worldwide. All intercompany transactions and balances have been eliminated in consolidation. During August 2018, the Company completed the sale of its wholly owned Russian subsidiary, Mitcham Seismic Eurasia (“MSE”) and no longer operates within Russia. During February 2019, the Company completed the sale of its wholly owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. (“SAP”) (see Note 22 - “Sale of Subsidiaries” for additional details related to this transaction). |
Revenue Recognition of Leasing Arrangements | Revenue Recognition of Leasing Arrangements —The Company leases various types of seismic equipment to seismic data acquisition companies. All leases at January 31, 2020 , 2019 and 2018 are for one year or less. Lease revenue is recognized ratably over the term of the lease. The Company does not enter into leases with embedded maintenance obligations. The standard lease provides that the lessee is responsible for maintenance and repairs to the equipment, excluding normal wear and tear. The Company occasionally provides technical advice to its customers without additional compensation as part of its customer service practices. Repairs or maintenance performed by the Company is charged to the lessee, generally on a time and materials basis. Repair and maintenance revenue are recognized as incurred. |
Revenue Recognition of Equipment Sales | Revenue Recognition of Equipment Sales —Revenues and cost of sales from the sale of equipment are recognized upon acceptance of terms and when delivery has occurred, unless there is a question as to collectability. In cases where the equipment sold is manufactured by others, the Company reports revenues at gross amounts billed to customers because the Company: (a) is the obligor in the sales arrangement; (b) has full latitude in pricing the product for sale; (c) has general inventory risk should there be a problem with the equipment being sold to the customer or if the customer does not complete payment for the items purchased; (d) has discretion in supplier selection if the equipment ordered is not unique to one manufacturer; and (e) assumes credit risk for the equipment sold to its customers. |
Revenue Recognition of Long-term Projects | Revenue Recognition of Long-term Projects —From time to time, Klein enters into contracts whereby they assemble and sell certain marine equipment, primarily to governmental entities. Performance under these contracts generally occurs over a period of several months. |
Revenue Recognition of Service Agreements | Revenue Recognition of Service Agreements —Seamap provides on-going support services pursuant to contracts that generally have a term of 12 months . The Company recognizes revenue from these contracts ratably over the term of the contract. In some cases, the Company will provide support services on a time and material basis. Revenue from these arrangements is recognized as the services are provided. For certain new systems that Seamap sells, the Company provides support services for up to 12 months at no additional charge. Any amounts attributable to these support obligations are immaterial. Revenues from service contracts for each of the three months ended January 31, 2020 were not material. Due to immateriality, service revenues are not presented separately in the financial statements. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts —Trade receivables are uncollateralized customer obligations due under normal trade terms. The carrying amount of trade receivables and contracts receivable is reduced by a valuation allowance that reflects management’s estimate of the amounts that will not be collected, based on the age of the receivable, payment history of the customer, general industry conditions, general financial condition of the customer and any financial or operational leverage the Company may have in a particular situation. Amounts are written-off when collection is deemed unlikely. Past due amounts are determined based on contractual terms. The Company generally does not charge interest on past due accounts. |
Cash and Cash Equivalents | Cash and Cash Equivalents —The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. |
Short-term Investments | Short-term Investments— The Company considers all highly liquid investments with an original maturity greater than three months , but less than twelve months , to be short-term investments. |
Inventories | Inventories —Inventories are stated at the lower of average cost (which approximates first-in, first-out) or market. An allowance for obsolescence is maintained to reduce the carrying value of any materials or parts that may become obsolete. Inventories are periodically monitored to ensure that the allowance for obsolescence covers any obsolete items. |
Seismic Equipment Lease Pool | Seismic Equipment Lease Pool —Seismic equipment held for lease consists primarily of recording channels and peripheral equipment and is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the equipment, which are five to seven years for channel boxes and two to 10 years for other peripheral equipment. As this equipment is subject to technological obsolescence and wear and tear, no salvage value is assigned to it. The Company continues to lease seismic equipment after it has been fully depreciated if it remains in acceptable condition and meets acceptable technical standards. This fully depreciated equipment remains in fixed assets on the Company’s books. The Company removes from its books the cost and accumulated depreciation of fully depreciated assets that are not expected to generate future revenues. |
Property and Equipment | Property and Equipment —Property and equipment is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the related estimated useful lives. The estimated useful lives of equipment range from three to seven years . Buildings are depreciated over 30 years and property improvements are amortized over 10 years or the shorter of their useful life. Leasehold improvements are amortized over the shorter of the realized estimated useful life or the life of the respective leases. No salvage value is assigned to property and equipment. |
Intangible Assets | Intangible Assets —Intangible assets are carried at cost, net of accumulated amortization. Amortization is computed on the straight-line method (for customer relationships, the straight-line method is not materially different from other methods that estimate run off of the underlying customer base) over the estimated life of the asset. Proprietary rights, developed technology and amortizable tradenames are amortized over a 10 to 15 -year period. Customer relationships are amortized over an eight -year period. Patents are amortized over an eight to nine -year period. |
Impairment | Impairment —The Company reviews its long-lived assets, including its amortizable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable . In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. The Company performs an impairment test on goodwill and indefinite lived assets on an annual basis. The Company performs a qualitative review to determine if it is more likely than not that the fair value of our reporting units is greater their carrying value. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the Company performs a quantitative assessment of fair value of the reporting unit. The quantitative reviews involve significant estimates on the part of management. |
Product Warranties | Product Warranties —Seamap provide its customers warranties against defects in materials and workmanship generally for a period of three months after delivery of the product. Klein also provides its customers with similar warranties against defects in material and workmanship for an approximate twelve months period subsequent to delivery of the product. The Company maintains an accrual for potential warranty costs based on historical warranty claims. |
Income Taxes | Income Taxes —The Company accounts for income taxes under the liability method, whereby the Company recognizes deferred tax assets and liabilities which represent differences between the financial and income tax reporting basis of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidence, the likelihood that the deferred tax assets will be recovered from future taxable income. The weight given to the potential effect of positive and negative evidence is commensurate with the extent to which it can be objectively verified. The preponderance of negative or positive evidence supports a conclusion regarding the need for a valuation allowance for some portion, or all, of the deferred tax asset. The more significant types of evidence considered include the following: • projected taxable income in future years; • our history of taxable income within a particular jurisdiction; • any history of deferred tax assets expiring prior realization; • whether the carry forward period is so brief that it would limit realization of tax benefits; • other limitations on the utilization of tax benefits; • future sales and operating cost projections that will produce more than enough taxable income to realize the deferred tax asset based on existing sales prices and cost structures; • our earnings history exclusive of the loss that created the future deductible amount coupled with evidence indicating that the loss is an aberration rather than a continuing condition; and • tax planning strategies that will create additional taxable income. |
Use of Estimates | Use of Estimates —The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the allowance for doubtful accounts, lease pool valuations, valuation allowance on deferred tax assets, the evaluation of uncertain tax positions, estimated depreciable lives of fixed assets and intangible assets, impairment of fixed assets and intangible assets, valuation of assets acquired and liabilities assumed in business combinations and the valuation of stock options. Future events and their effects cannot be perceived with certainty. Accordingly, these accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results could differ from these estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company’s financial instruments consist of accounts and contracts receivable and accounts payable. The Financial Accounting Standards Board (“FASB”) has issued guidance on the definition of fair value, the framework for using fair value to measure assets hierarchy, which prioritizes the inputs used to measure fair value. These tiers include: • Level 1: Defined as observable inputs such as quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2: Defined as pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current and contractual prices for the underlying instruments, as well as other relevant economic measures. • Level 3: Defined as pricing inputs that are unobservable form objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. The Company measures the fair values of goodwill, intangibles and other long-lived assets on a recurring basis if required by impairment tests applicable to these assets. The Company utilized Level 3 inputs to value goodwill, intangibles and other long-lived assets as of January 31, 2020 . |
Foreign Currency Translation | Foreign Currency Translation —All balance sheet accounts of the Canadian, Australian and United Kingdom resident subsidiaries have been translated at the current exchange rate as of the end of the accounting period. Statements of operations items have been translated at average currency exchange rates. The resulting translation adjustment is recorded as a separate component of comprehensive income within shareholders’ equity. |
Stock-Based Compensation | Stock-Based Compensation —Stock-based compensation expense is recorded based on the grant date fair value of share-based awards. Restricted stock awards are valued at the closing price on the date of grant. Determining the grant date fair value for options requires management to make estimates regarding the variables used in the calculation of the grant date fair value. Those variables are the future volatility of our common stock price, the length of time an optionee will hold their options until exercising them (the “expected term”), and the number of options that will be forfeited before they are exercised (the “forfeiture rate”). We utilize various mathematical models in calculating the variables. Share-based compensation expense could be different if we used different models to calculate the variables. |
Earnings Per Share | Earnings Per Share —Net income (loss) per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income (loss) per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method, from unvested shares of restricted stock using the treasury stock method and from outstanding common stock warrants. |
Reclassifications | Reclassifications —Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the results of operations or comprehensive income. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances. Any transition impact will be a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period and early adoption is permitted. The Company adopted this ASU as of February 1, 2019. The adoption of ASU No. 2018-07 did not have a material effect on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, to simplify impairment testing of goodwill and other intangible assets by eliminating step two of the impairment test. The Company adopted the provisions of ASU 2017-04 as of January 31, 2018. The adoption of ASU 2017-04 did not have a material effect on the Company’s condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, to require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted the provisions of ASU No. 2016-18 as of February 1, 2017. The adoption of ASU No. 2016-18 did not have a material effect on the Company’s condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company adopted the provisions of ASU No. 2016-15 as of February 1, 2018. The adoption of ASU No. 2016-15 did not have a material effect on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation -Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new standard as of February 1, 2017, utilizing the prospective transition method. As a result, the Company now recognizes all excess tax charges or benefits as income tax expense or benefit in the accompanying Consolidated Statements of Operations and in the accompanying Consolidated Statements of Cash Flows as operating activities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Qualitative and quantitative disclosures are required, and optional practical expedients may be elected. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period. Subsequent amendments to the initial guidance have been issued in January 2017, January 2018, and July 2018 within ASU No. 201703, ASU No. 2018-01, ASU No. 2018-10, and ASU No. 2018-11 regarding qualitative disclosures, optional practical expedients, codification improvements and an optional transition method to adopt with a cumulative-effect adjustment versus a modified retrospective approach. These updates do not change the core principle of the guidance under ASU No. 2016-02, but rather provide implementation guidance. The Company adopted the accounting standard as of February 1, 2019, using the cumulative-effect transition method, which applies the guidance at the beginning of the period of adoption. The Company elected the package of practical expedients permitted, which, among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company made the accounting policy elections to not recognize lease assets and lease liabilities with an initial term of 12 months or less and to not separate lease and non-lease components. The impact of adoption on the Company’s consolidated balance sheet was the recognition of a ROU asset of $3.0 million and an operating lease liability of $3.0 million, primarily for office and shop space leases that are currently off-balance sheet. The adoption did not have a material impact on its results of operations nor any material impact on its cash flows. In July 2015, the FASB issued ASU No. 2015-11, Inventory: (Topic 330) , to provide guidance on measurement of inventory. ASU 2015-11 requires that inventories utilizing the first-in, first-out (FIFO) method be measured at lower of cost or net realizable value. The Company has adopted the provisions of ASU 2015-11 as of February 1, 2017. The adoption of ASU 2015-11 did not have an impact on the Company’s consolidated financial statements as the Company’s inventory is determined using the average cost and standard cost methods. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 was later amended by ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2014-09, as amended, (the “New Revenue Standard”) supersedes most industry specific guidance and intends to enhance comparability of revenue recognition practices across entities and industries by providing a principle-based, comprehensive framework for addressing revenue recognition issues. The Company adopted the New Revenue Standard as of February 1, 2018 using the modified retrospective method. The adoption of the New Revenue Standard did not have a material impact on the Company’s consolidated financial statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restricted Stock and Options Outstanding Used in Per Share Calculations | For the fiscal years ended January 31, 2020 , 2019 and 2018 , the following table sets forth the number of potentially dilutive shares that may be issued pursuant to options, restricted stock and warrants outstanding used in the per share calculations. Years Ended January 31, 2020 2019 2018 (in thousands) Stock options 79 96 77 Restricted stock 3 11 32 Total dilutive shares 82 107 109 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition: Twelve Months Ended January 31, 2020 2019 Revenue recognized at a point in time: (in thousands) Seamap $ 21,270 $ 15,213 Klein 7,468 6,515 SAP 101 3,264 Total revenue recognized at a point in time $ 28,839 $ 24,992 Revenue recognized over time: Seamap $ 733 $ 776 Klein — — SAP — — Total revenue recognized over time 733 776 Total revenue from contracts with customers $ 29,572 $ 25,768 The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers: Twelve Months Ended January 31, 2020 2019 Revenue from contracts with customers: (in thousands) United States $ 3,920 $ 2,690 Europe, Russia & CIS 15,262 11,858 Middle East & Africa 1,576 1,243 Asia-Pacific 5,030 8,900 Canada & Latin America 3,784 1,077 Total revenue from contracts with customers $ 29,572 $ 25,768 |
Contract with Customer, Asset and Liability | As of January 31, 2020, contract assets and liabilities consisted of the following: January 31, 2020 January 31, 2019 Contract Assets: (in thousands) Unbilled revenue-current $ 13 $ 340 Unbilled revenue - non-current — — Total unbilled revenue $ 13 $ 340 Contract Liabilities: Deferred revenue & customer deposits - current $ 220 $ 556 Deferred revenue & customer deposits - non-current 12 11 Total deferred revenue & customer deposits $ 232 $ 567 |
Acquisition of Assets (Tables)
Acquisition of Assets (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | Details of the purchase price and the allocation of the purchase price to the assets acquired are as follows (in thousands): Purchase Price: Cash $ 3,000 Release of claims against Hydroscience 1,144 Transaction costs 312 Total purchase price $ 4,456 Allocation of purchase price: Inventory $ 206 Tangible assets (mainly manufacturing equipment) 350 Intangible assets (including patents, designs & software) 3,900 Total purchase price $ 4,456 |
Supplemental Statements of Ca_2
Supplemental Statements of Cash Flows Information (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flows Information | Supplemental disclosures of cash flows information for the fiscal years ended January 31, 2020 , 2019 and 2018 were as follows (in thousands): Years Ended January 31, 2020 2019 2018 Interest paid $ 63 $ 8 $ 86 Income taxes paid, net 498 622 494 Seismic equipment purchases included in accounts payable at year-end 812 — 53 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): As of January 31, 2020 2019 Raw materials $ 7,388 $ 5,446 Finished goods 4,557 5,229 Work in progress 2,720 1,322 Cost of inventories 14,665 11,997 Less allowance for obsolescence (1,404 ) (1,223 ) Net inventories $ 13,261 $ 10,774 |
Accounts Receivables (Tables)
Accounts Receivables (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivables consisted of the following (in thousands): As of January 31, 2020 As of January 31, 2019 Current Long-term Total Current Long-term Total Accounts receivable $ 15,975 $ 403 $ 16,378 $ 14,195 $ 712 $ 14,907 Less allowance for doubtful accounts (4,054 ) — (4,054 ) (2,113 ) — (2,113 ) Accounts receivable net of allowance for doubtful accounts $ 11,921 $ 403 $ 12,324 $ 12,082 $ 712 $ 12,794 |
Seismic Equipment Lease Pool _2
Seismic Equipment Lease Pool and Property and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Seismic Equipment Lease Pool and Property and Equipment | Seismic equipment lease pool and property and equipment consisted of the following (in thousands) As of January 31, 2020 2019 Recording channels $ 80,378 $ 84,207 Other peripheral equipment 64,756 63,312 Cost of seismic equipment lease pool 145,134 147,519 Land and buildings 4,274 4,041 Furniture and fixtures 10,530 9,897 Autos and trucks 561 571 Cost of property and equipment 15,365 14,509 Cost of seismic equipment lease pool and property and equipment 160,499 162,028 Less accumulated depreciation (146,722 ) (147,873 ) Net book value of seismic equipment lease pool and property and equipment $ 13,777 $ 14,155 |
Location of Seismic Equipment Lease Pool and Property and Equipment | Location of seismic equipment lease pool and property and equipment (in thousands): As of January 31, 2020 2019 United States $ 5,400 $ 1,566 Europe 4,110 5,564 Canada 1,136 93 Latin America 1,170 1,365 Singapore 773 4,496 Malaysia 1,188 1,071 Net book value of seismic equipment lease pool and property and equipment $ 13,777 $ 14,155 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of January 31, 2020 was as follows (in thousands): Lease January 31, 2020 Impact of ASC 842 Transition Assets Operating lease assets $ 2,300 $ 2,710 Liabilities Operating lease liabilities $ 2,300 $ 2,710 Classification of lease liabilities Current liabilities $ 1,339 Non-current liabilities 961 Total Operating lease liabilities $ 2,300 Lease-term and discount rate details as of January 31, 2020 were as follows: Lease term and discount rate January 31, 2020 Weighted average remaining lease term (years) Operating leases 1.76 Weighted average discount rate: Operating leases 9.27 % |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows (in thousands): Lease Twelve Months Ended January 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (1,182 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 635 |
Maturities of Lease Liabilities | Maturities of lease liabilities at January 31, 2020 were as follows (in thousands): January 31, 2020 2021 $ 1,338 2022 838 2023 222 2024 98 2025 52 Thereafter 21 Total payments under lease agreements $ 2,569 Less: imputed interest (269 ) Total lease liabilities $ 2,300 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Weighted Average Life at 1/31/20 January 31, 2020 January 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount (in thousands) (in thousands) Goodwill $ 7,060 $ — $ (4,529 ) $ 2,531 $ 7,060 $ — $ (4,529 ) $ 2,531 Proprietary rights 7.0 $ 9,293 $ (4,971 ) — 4,322 $ 9,303 $ (4,292 ) — 5,011 Customer relationships 1.8 5,024 (3,831 ) — 1,193 5,024 (3,147 ) — 1,877 Patents 4.5 2,440 (1,277 ) — 1,163 2,441 (1,028 ) — 1,413 Trade name 6.3 894 (63 ) (760 ) 71 894 (52 ) — 842 Developed technology 5.9 1,430 (584 ) — 846 1,430 (441 ) — 989 Other 4.3 653 (87 ) — 566 385 (22 ) — 363 Amortizable intangible assets $ 19,734 $ (10,813 ) $ (760 ) $ 8,161 $ 19,477 $ (8,982 ) $ — $ 10,495 |
Future Estimated Amortization Expense Related to Amortizable Intangible Assets | As of January 31, 2020 , future estimated amortization expense related to amortizable intangible assets is estimated to be (in thousands): For fiscal years ending January 31: 2021 $ 1,733 2022 1,256 2023 1,088 2024 976 2025 746 Thereafter 2,362 Total $ 8,161 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of January 31, 2020 2019 Contract settlement $ 228 $ 219 Wages and benefits 373 596 Customer deposits 376 701 Accrued inventory 229 447 Other 2,246 1,775 Accrued Expenses and Other Liabilities $ 3,452 $ 3,738 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Taxes by Jurisdiction | Years Ended January 31, 2020 2019 2018 (in thousands) (Loss) income before income taxes is attributable to the following jurisdictions: Domestic $ (12,808 ) $ (6,025 ) $ (12,246 ) Foreign 2,399 (13,563 ) (7,913 ) Total $ (10,409 ) $ (19,588 ) $ (20,159 ) The components of income tax expense (benefit) were as follows: Current: Domestic $ 27 $ 9 $ (225 ) Foreign 582 619 1,156 609 628 931 Deferred: Domestic — — (36 ) Foreign 269 (376 ) 15 269 (376 ) (21 ) Income tax expense $ 878 $ 252 $ 910 |
Reconciliation of Expected to Actual Income Tax Expense | The following is a reconciliation of expected to actual income tax expense: Years Ended January 31, 2020 2019 2018 (in thousands) Federal income tax at 21%, 21%, 32.9%, respectively $ (2,186 ) $ (4,113 ) $ (6,632 ) Changes in tax rates 631 — 7,257 Permanent differences 101 (148 ) 3,356 Foreign effective tax rate differential (197 ) 60 1,163 Foreign withholding taxes, foreign branch taxes, including penalties and interest 403 431 716 Tax effect of book loss on disposition of subsidiaries 69 1,271 — Valuation allowance on deferred tax assets 1,719 2,249 (5,765 ) Excess tax deficiency for share-based payments under ASU 2016-09 284 663 309 Other 54 (161 ) 506 $ 878 $ 252 $ 910 |
Company's Deferred Taxes | The components of the Company’s deferred taxes consisted of the following: As of January 31, 2020 2019 (in thousands) Deferred tax assets: Net operating losses $ 17,978 $ 16,696 Tax credit carry forwards 724 675 Stock option book expense 650 781 Allowance for doubtful accounts 776 329 Allowance for inventory obsolescence 570 480 Accruals not yet deductible for tax purposes 357 418 Fixed assets 851 1,255 Intangible assets 337 — Other 954 876 Gross deferred tax assets 23,197 21,510 Valuation allowance (23,197 ) (21,407 ) Deferred tax assets — 103 Deferred tax liabilities: Intangible assets — (35 ) Other (200 ) — Deferred tax liabilities (200 ) (35 ) Unrecognized tax benefits — — Total deferred tax (liabilities) assets, net (200 ) $ 68 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Fair Value Option Award | The assumptions for the periods indicated are noted in the following table. Weighted average Black-Scholes-Merton fair value assumptions Years Ending January 31, 2020 2019 2018 Risk free interest rate 1.47 - 2.53% 2.51 - 2.75% 1.89 - 2.01% Expected life 3.98 - 6.00 yrs 4.00 - 6.86 yrs 4.87 - 6.87 yrs Expected volatility 49 - 51% 49 - 49% 42 - 47% Expected dividend yield 0.0% 0.0% 0.0% |
Summary of Company's Stock Option Activity | The following table presents a summary of the Company’s stock option activity for the fiscal year ended January 31, 2020 : Number of Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, January 31, 2019 2,163 $ 7.75 6.54 $ 526 Granted 640 3.96 Exercised (9 ) 2.80 Forfeited (88 ) 3.73 Expired (266 ) 29.86 Outstanding, January 31, 2020 2,440 $ 4.51 7.08 $ 20 Exercisable at January 31, 2020 1,461 $ 4.87 5.94 $ 15 Vested and expected to vest at January 31, 2020 2,400 $ 4.50 7.02 $ 20 |
Restricted Stock and Changes During Period | Restricted stock as of January 31, 2020 and changes during the fiscal year ended January 31, 2020 were as follows: Year Ended January 31, 2020 Number of Shares (in thousands) Weighted Average Grant Date Fair Value Unvested, beginning of period — $ — Granted 43 3.98 Vested (2 ) 3.98 Canceled (4 ) 3.98 Unvested, end of period 37 $ 3.98 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets from Segment to Consolidated | Financial information by business segment is set forth below net of any allocations (in thousands): As of January 31, 2020 As of January 31, 2019 As of January 31, 2018 Marine Technology Products Equipment Leasing Consolidated Marine Technology Products Equipment Leasing Consolidated Marine Technology Products Equipment Leasing Consolidated Fixed assets, net $ 4,791 $ 8,986 $ 13,777 $ 4,635 $ 9,534 $ 14,155 $ 3,790 $ 19,161 $ 22,900 Intangible assets, net 8,048 113 8,161 10,417 78 10,495 8,015 — 8,015 Goodwill 2,531 — 2,531 2,531 — 2,531 2,531 — 2,531 Total Assets 47,211 11,017 58,228 44,832 20,469 65,301 35,879 37,850 73,679 |
Reconciliation of Revenue from Segments to Consolidated | As of January 31, 2020 As of January 31, 2019 As of January 31, 2018 Marine Technology Products Equipment Leasing Corporate expenses Consolidated Marine Technology Products Equipment Leasing Corporate expenses Consolidated Marine Technology Products Equipment Leasing Corporate expenses Consolidated Revenues $ 29,572 $ 13,213 — $ 42,675 $ 25,768 $ 17,383 $ — $ 42,942 $ 27,572 $ 20,919 $ — $ 48,276 Interest expense, net 1 (47 ) — (46 ) — 72 — 72 (18 ) 65 — 47 Operating loss (2,259 ) (4,667 ) (3,471 ) (10,375 ) (3,780 ) (5,872 ) (3,375 ) (13,020 ) (2,572 ) (13,930 ) (3,211 ) (19,708 ) Capital expenditures 894 3,097 — 3,991 583 1,948 — 2,531 268 1,048 — 1,316 Depreciation and amortization expense 2,649 5,141 — 7,768 2,418 9,402 — 11,814 1,991 14,652 — 16,637 |
Reconciliation of Operating Income (Loss) | A reconciliation of operating income is as follows (in thousands): Years Ended January 31, 2020 2019 2018 Marine Technology Products $ (2,259 ) $ (3,780 ) $ (2,572 ) Equipment Leasing (4,667 ) (5,872 ) (13,930 ) Corporate Expenses (3,471 ) (3,375 ) (3,211 ) Reconciling items: Elimination of loss from inter-company sales 22 7 5 Consolidated operating income $ (10,375 ) $ (13,020 ) $ (19,708 ) |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | Quarters Ended Fiscal Year April 30 July 31 October 31 January 31 Net revenues: 2020 $ 9,857 $ 8,898 $ 10,663 $ 13,257 2019 $ 7,613 $ 8,350 $ 14,651 $ 12,328 Gross profit: 2020 $ 3,741 $ 2,882 $ 4,051 $ 5,947 2019 $ 1,245 $ 1,860 $ 5,224 $ 3,411 Loss before income taxes: 2020 $ (2,360 ) $ (3,088 ) $ (1,968 ) $ (2,993 ) 2019 $ (5,468 ) $ (4,504 ) $ (5,440 ) $ (4,176 ) Incomes taxes (benefit): 2020 $ 55 $ 48 $ 60 $ 715 2019 $ 437 $ 85 $ (249 ) $ (21 ) Net loss: 2020 $ (2,415 ) $ (3,136 ) $ (2,028 ) $ (3,708 ) 2019 $ (5,905 ) $ (4,589 ) $ (5,191 ) $ (4,155 ) Loss per common share – basic: 2020 $ (0.24 ) $ (0.30 ) $ (0.21 ) $ (0.35 ) 2019 $ (0.52 ) $ (0.41 ) $ (0.47 ) $ (0.38 ) Loss per common share – diluted: 2020 $ (0.24 ) $ (0.30 ) $ (0.21 ) $ (0.35 ) 2019 $ (0.52 ) $ (0.41 ) $ (0.47 ) $ (0.38 ) |
Sales and Major Customers (Tabl
Sales and Major Customers (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Company's Revenues from Customers by Geographic Region, Outside the U.S. | A summary of the Company’s revenues from customers by geographic region, outside the U.S., is as follows (in thousands): Years Ended January 31, 2020 2019 2018 UK/Europe $ 20,366 $ 15,200 $ 11,835 Canada 3,731 2,049 807 Latin America 2,663 1,267 1,354 Asia/South Pacific 6,871 13,555 16,768 Eurasia 290 1,803 332 Other 1,942 2,723 5,834 Total $ 35,863 $ 36,597 $ 36,930 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Partnership Organization And Basis Of Presentation [Line Items] | |||
Services pursuant to contracts term | 12 months | ||
Support services term | 12 months | ||
Additional charges | $ 0 | ||
Salvage value assigned to property and equipment | $ 0 | ||
Customer relationships | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Intangible assets amortization period | 8 years | ||
Building | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Estimated useful lives | 30 years | ||
Property Improvements | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Estimated useful lives | 10 years | ||
Maximum | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Lease period | 1 year | 1 year | 1 year |
Liquid investments maturity period | 3 months | ||
Short-term investments maturity period | 12 months | ||
Estimated useful lives | 7 years | ||
Maximum | Proprietary rights developed technology and amortizable trade names | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Intangible assets amortization period | 15 years | ||
Maximum | Patents | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Intangible assets amortization period | 9 years | ||
Maximum | Recording channels | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Estimated useful lives | 7 years | ||
Maximum | Other peripheral equipment | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Estimated useful lives | 10 years | ||
Minimum | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Short-term investments maturity period | 3 months | ||
Estimated useful lives | 3 years | ||
Minimum | Proprietary rights developed technology and amortizable trade names | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Intangible assets amortization period | 10 years | ||
Minimum | Patents | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Intangible assets amortization period | 8 years | ||
Minimum | Recording channels | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Estimated useful lives | 5 years | ||
Minimum | Other peripheral equipment | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Estimated useful lives | 2 years | ||
Seamap | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Customers warranty against defects | 3 months | ||
Klein | |||
Partnership Organization And Basis Of Presentation [Line Items] | |||
Customers warranty against defects | 12 months |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Restricted Stock and Options Outstanding Used in Per Share Calculations (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Stock options (in shares) | 79 | 96 | 77 |
Restricted stock (in shares) | 3 | 11 | 32 |
Total dilutive shares | 82 | 107 | 109 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Apr. 30, 2019 | Feb. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 2,300 | $ 3,000 | $ 2,710 |
Operating lease liability | $ 2,300 | $ 3,000 | 2,710 |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 3,000 | ||
Operating lease liability | $ 3,000 |
Subsequent Events and Liquidi_2
Subsequent Events and Liquidity - Additional Information (Details) - USD ($) $ in Millions | Apr. 22, 2020 | Jan. 31, 2020 |
Subsequent Event [Line Items] | ||
Working capital | $ 22.2 | |
Cash included in working capital | 3.2 | |
Backlog of orders | $ 8.9 | |
Forecast | Government sponsored loans | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Government sponsored loans | $ 1.6 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 29,572 | $ 25,768 |
Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 28,839 | 24,992 |
Revenue recognized over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 733 | 776 |
Seamap | Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 21,270 | 15,213 |
Seamap | Revenue recognized over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 733 | 776 |
Klein | Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 7,468 | 6,515 |
Klein | Revenue recognized over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
SAP | Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 101 | 3,264 |
SAP | Revenue recognized over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 0 | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 29,572 | $ 25,768 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,920 | 2,690 |
Europe, Russia & CIS | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 15,262 | 11,858 |
Middle East & Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1,576 | 1,243 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 5,030 | 8,900 |
Canada & Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 3,784 | $ 1,077 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Assets And Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Contract Assets: | ||
Unbilled revenue-current | $ 13 | $ 340 |
Unbilled revenue - non-current | 0 | 0 |
Total unbilled revenue | 13 | 340 |
Contract Liabilities: | ||
Deferred revenue & customer deposits - current | 220 | 556 |
Deferred revenue & customer deposits - non-current | 12 | 11 |
Total deferred revenue & customer deposits | $ 232 | $ 567 |
Minimum | ||
Contract With Customers [Line Items] | ||
Contract with customers, turn over period | 3 months | |
Maximum | ||
Contract With Customers [Line Items] | ||
Contract with customers, turn over period | 6 months |
Acquisition of Assets (Details)
Acquisition of Assets (Details) $ in Thousands | 1 Months Ended |
Feb. 28, 2018USD ($)shares | |
Preferred Stock | |
Allocation of purchase price: | |
Stock issued during period (in shares) | shares | 174,046 |
Preferred stock dividend rate | 9.00% |
Value of shares issued | $ 4,000 |
Hydroscience | |
Purchase Price: | |
Cash | 3,000 |
Release of claims against Hydroscience | 1,144 |
Transaction costs | 312 |
Total purchase price | 4,456 |
Allocation of purchase price: | |
Inventory | 206 |
Tangible assets (mainly manufacturing equipment) | 350 |
Intangible assets (including patents, designs & software) | 3,900 |
Total purchase price | $ 4,456 |
Supplemental Statements of Ca_3
Supplemental Statements of Cash Flows Information - Supplemental Disclosures of Cash Flows Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid | $ 63 | $ 8 | $ 86 |
Income taxes paid, net | 498 | 622 | 494 |
Seismic equipment purchases included in accounts payable at year-end | $ 812 | $ 0 | $ 53 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,388 | $ 5,446 |
Finished goods | 4,557 | 5,229 |
Work in progress | 2,720 | 1,322 |
Cost of inventories | 14,665 | 11,997 |
Less allowance for obsolescence | (1,404) | (1,223) |
Net inventories | $ 13,261 | $ 10,774 |
Accounts Receivables - Schedule
Accounts Receivables - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Receivables [Abstract] | ||
Current accounts receivable | $ 15,975 | $ 14,195 |
Long-term accounts receivable | 403 | 712 |
Accounts receivable | 16,378 | 14,907 |
Less current portion of allowance for doubtful accounts | (4,054) | (2,113) |
Less long-term portion of allowance for doubtful accounts | 0 | 0 |
Less total allowance for doubtful accounts | (4,054) | (2,113) |
Current accounts receivable, net of allowance for doubtful accounts | 11,921 | 12,082 |
Long-term accounts receivable, net of allowance for doubtful accounts | 403 | 712 |
Total accounts receivable, net of allowance for doubtful accounts | $ 12,324 | $ 12,794 |
Accounts Receivables - Addition
Accounts Receivables - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Jan. 31, 2020USD ($)Customer | Jan. 31, 2019USD ($)Customer | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Number of customers due | Customer | 2 | 3 |
Contracts receivable | $ | $ 1.9 | $ 3 |
Contracts receivable, interest rate | 2.50% | 3.60% |
Minimum | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Contracts receivable repayment term | 0 months | |
Maximum | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Contracts receivable repayment term | 18 months |
Seismic Equipment Lease Pool _3
Seismic Equipment Lease Pool and Property and Equipment - Schedule of Seismic Equipment Lease Pool and Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Cost of property and equipment | $ 15,365 | $ 14,509 | |
Cost of seismic equipment lease pool and property and equipment | 160,499 | 162,028 | |
Less accumulated depreciation | (146,722) | (147,873) | |
Net book value of seismic equipment lease pool and property and equipment | 13,777 | 14,155 | $ 22,900 |
Recording channels | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property and equipment | 80,378 | 84,207 | |
Other peripheral equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property and equipment | 64,756 | 63,312 | |
Cost of seismic equipment lease pool | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property and equipment | 145,134 | 147,519 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property and equipment | 4,274 | 4,041 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property and equipment | 10,530 | 9,897 | |
Autos and trucks | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property and equipment | $ 561 | $ 571 |
Seismic Equipment Lease Pool _4
Seismic Equipment Lease Pool and Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Impairment charges related to long-lived assets | $ 0 | $ 0 |
Seismic Equipment Lease Pool _5
Seismic Equipment Lease Pool and Property and Equipment - Location of Seismic Equipment Lease Pool and Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Geographic Information For Property Plant And Equipment [Line Items] | |||
Net book value of seismic equipment lease pool and property and equipment | $ 13,777 | $ 14,155 | $ 22,900 |
United States | |||
Geographic Information For Property Plant And Equipment [Line Items] | |||
Net book value of seismic equipment lease pool and property and equipment | 5,400 | 1,566 | |
Europe | |||
Geographic Information For Property Plant And Equipment [Line Items] | |||
Net book value of seismic equipment lease pool and property and equipment | 4,110 | 5,564 | |
Canada | |||
Geographic Information For Property Plant And Equipment [Line Items] | |||
Net book value of seismic equipment lease pool and property and equipment | 1,136 | 93 | |
Latin America | |||
Geographic Information For Property Plant And Equipment [Line Items] | |||
Net book value of seismic equipment lease pool and property and equipment | 1,170 | 1,365 | |
Singapore | |||
Geographic Information For Property Plant And Equipment [Line Items] | |||
Net book value of seismic equipment lease pool and property and equipment | 773 | 4,496 | |
Malaysia | |||
Geographic Information For Property Plant And Equipment [Line Items] | |||
Net book value of seismic equipment lease pool and property and equipment | $ 1,188 | $ 1,071 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Apr. 30, 2019 | Feb. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease right-of-use assets | $ 2,300 | $ 3,000 | $ 2,710 | ||
Total operating lease liabilities | 2,300 | $ 3,000 | $ 2,710 | ||
Lease expense | 1,200 | ||||
Short-term lease expense | 30 | ||||
Seismic equipment lease pool | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease expense incurred by the Company | 2,500 | $ 1,900 | $ 774 | ||
Office | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease expense incurred by the Company | $ 1,200 | $ 1,300 | $ 1,200 | ||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating leases, non-cancelable term (in years) | 1 year |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Apr. 30, 2019 | Feb. 01, 2019 |
Assets | |||
Operating lease right-of-use assets | $ 2,300 | $ 3,000 | $ 2,710 |
Liabilities | |||
Total operating lease liabilities | 2,300 | 3,000 | 2,710 |
Current liabilities | 1,339 | ||
Non-current liabilities | 961 | ||
Total Operating lease liabilities | $ 2,300 | $ 3,000 | $ 2,710 |
Weighted average remaining lease term (years) | |||
Operating leases | 1 year 9 months 5 days | ||
Weighted average discount rate: | |||
Operating leases | 9.27% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ (1,182) |
Right-of-use assets obtained in exchange for lease liabilities: | |
Operating leases | $ 635 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Apr. 30, 2019 | Feb. 01, 2019 |
Leases [Abstract] | |||
2021 | $ 1,338 | ||
2022 | 838 | ||
2023 | 222 | ||
2024 | 98 | ||
2025 | 52 | ||
Thereafter | 21 | ||
Total payments under lease agreements | 2,569 | ||
Less: imputed interest | (269) | ||
Total operating lease liabilities | $ 2,300 | $ 3,000 | $ 2,710 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Gross Carrying Amount | $ 7,060 | $ 7,060 | |
Goodwill Impairment | (4,529) | (4,529) | |
Goodwill, Net Carrying Amount | 2,531 | 2,531 | $ 2,531 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 19,734 | 19,477 | |
Accumulated Amortization | (10,813) | (8,982) | |
Impairment | (760) | ||
Net Carrying Amount | $ 8,161 | 10,495 | $ 8,015 |
Proprietary rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life (in years) | 7 years | ||
Gross Carrying Amount | $ 9,293 | 9,303 | |
Accumulated Amortization | (4,971) | (4,292) | |
Net Carrying Amount | $ 4,322 | 5,011 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life (in years) | 1 year 9 months 16 days | ||
Gross Carrying Amount | $ 5,024 | 5,024 | |
Accumulated Amortization | (3,831) | (3,147) | |
Net Carrying Amount | $ 1,193 | 1,877 | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life (in years) | 4 years 6 months | ||
Gross Carrying Amount | $ 2,440 | 2,441 | |
Accumulated Amortization | (1,277) | (1,028) | |
Net Carrying Amount | $ 1,163 | 1,413 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life (in years) | 6 years 3 months 16 days | ||
Gross Carrying Amount | $ 894 | 894 | |
Accumulated Amortization | (63) | (52) | |
Impairment | (760) | ||
Net Carrying Amount | $ 71 | 842 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life (in years) | 5 years 10 months 16 days | ||
Gross Carrying Amount | $ 1,430 | 1,430 | |
Accumulated Amortization | (584) | (441) | |
Net Carrying Amount | $ 846 | 989 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life (in years) | 4 years 4 months | ||
Gross Carrying Amount | $ 653 | 385 | |
Accumulated Amortization | (87) | (22) | |
Net Carrying Amount | $ 566 | $ 363 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Aggregate amortization expense | $ 1,800 | $ 1,800 | $ 1,500 |
Klein Associates Inc. | |||
Segment Reporting Information [Line Items] | |||
Impairment of indefinite lived intangible assets | $ 760 | ||
Goodwill, impairment | $ 1,500 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Related to Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2021 | $ 1,733 | ||
2022 | 1,256 | ||
2023 | 1,088 | ||
2024 | 976 | ||
2025 | 746 | ||
Thereafter | 2,362 | ||
Net Carrying Amount | $ 8,161 | $ 10,495 | $ 8,015 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Payables and Accruals [Abstract] | ||
Contract settlement | $ 228 | $ 219 |
Wages and benefits | 373 | 596 |
Customer deposits | 376 | 701 |
Accrued inventory | 229 | 447 |
Other | 2,246 | 1,775 |
Accrued Expenses and Other Liabilities | $ 3,452 | $ 3,738 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 12 Months Ended | ||
Jan. 31, 2020quarter$ / sharesshares | Jan. 31, 2019shares | Jan. 31, 2018$ / sharesshares | |
Statement Of Shareholders Equity [Line Items] | |||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock, shares outstanding (in shares) | 994,000 | 830,000 | |
Number of quarterly periods to obtain voting rights | quarter | 6 | ||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Common stock, shares issued (in shares) | 14,097,000 | 14,049,000 | |
Shares surrendered in exchange for payment of taxes | 0 | 0 | 359 |
Average fair value of shares (in usd per share) | $ / shares | $ 4.79 | ||
Series A Preferred Stock | |||
Statement Of Shareholders Equity [Line Items] | |||
Preferred stock, shares outstanding (in shares) | 994,000 | 830,000 | |
Preferred stock, dividend rate | 9.00% | ||
Preferred stock, liquidation preference per share (in usd per share) | $ / shares | $ 25 | ||
Preferred stock, dividend rate (in usd per share) | $ / shares | 2.25 | ||
Preferred stock, redemption price (in usd per share) | $ / shares | $ 25 | ||
Preferred stock, redemption period | 120 days | ||
Period of time for listing | 180 days |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Detail) - USD ($) | Oct. 07, 2016 | Jan. 31, 2020 | Jan. 31, 2020 | Jan. 31, 2019 |
Related Party Transaction [Line Items] | ||||
Maximum number of preferred stock to be issued (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | |
Former CEO | ||||
Related Party Transaction [Line Items] | ||||
Interest rate on obligation payable to related party | 4.00% | |||
Outstanding obligation payable to related party | $ 1,200,000 | $ 1,200,000 | ||
Outstanding obligation payable to related party, long-term | $ 967,000 | $ 967,000 | ||
Series A Preferred Stock | Ladenburg Thalmann & Co. Inc. | ||||
Related Party Transaction [Line Items] | ||||
Maximum number of preferred stock to be issued (in shares) | 500,000 | |||
Percentage of compensation fees to be paid | 2.00% | |||
Stock issued during period (in shares) | 66,436 | 163,674 | ||
Gross proceeds from preferred stock | $ 1,600,000 | $ 3,900,000 | ||
Equity distribution compensation expenses | 31,902 | 78,935 | ||
Net proceeds from preferred stock | 1,600,000 | $ 3,900,000 | ||
Series A Preferred Stock | Non-Executive Chairman | ||||
Related Party Transaction [Line Items] | ||||
Equity distribution compensation expenses | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes by Jurisdiction (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
(Loss) income before income taxes is attributable to the following jurisdictions: | |||||||||||
Domestic | $ (12,808) | $ (6,025) | $ (12,246) | ||||||||
Foreign | 2,399 | (13,563) | (7,913) | ||||||||
Loss before income taxes | $ (2,993) | $ (1,968) | $ (3,088) | $ (2,360) | $ (4,176) | $ (5,440) | $ (4,504) | $ (5,468) | (10,409) | (19,588) | (20,159) |
Current: | |||||||||||
Domestic | 27 | 9 | (225) | ||||||||
Foreign | 582 | 619 | 1,156 | ||||||||
Total | 609 | 628 | 931 | ||||||||
Deferred: | |||||||||||
Domestic | 0 | 0 | (36) | ||||||||
Foreign | 269 | (376) | 15 | ||||||||
Total | 269 | (376) | (21) | ||||||||
Income tax expense | $ 715 | $ 60 | $ 48 | $ 55 | $ (21) | $ (249) | $ 85 | $ 437 | $ 878 | $ 252 | $ 910 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Expected to Actual Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Reconciliation of expected to actual income tax expense | |||||||||||
Federal income tax at 21%, 21%, 32.9%, respectively | $ (2,186) | $ (4,113) | $ (6,632) | ||||||||
Federal income tax rate (as a percent) | 21.00% | 21.00% | 32.90% | ||||||||
Changes in tax rates | $ 631 | $ 0 | $ 7,257 | ||||||||
Permanent differences | 101 | (148) | 3,356 | ||||||||
Foreign effective tax rate differential | (197) | 60 | 1,163 | ||||||||
Foreign withholding taxes, foreign branch taxes, including penalties and interest | 403 | 431 | 716 | ||||||||
Tax effect of book loss on disposition of subsidiaries | 69 | 1,271 | 0 | ||||||||
Valuation allowance on deferred tax assets | 1,719 | 2,249 | (5,765) | ||||||||
Excess tax deficiency for share-based payments under ASU 2016-09 | 284 | 663 | 309 | ||||||||
Other | 54 | (161) | 506 | ||||||||
Income tax expense | $ 715 | $ 60 | $ 48 | $ 55 | $ (21) | $ (249) | $ 85 | $ 437 | $ 878 | $ 252 | $ 910 |
Income Taxes - Company's Deferr
Income Taxes - Company's Deferred Taxes (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred tax assets: | ||
Net operating losses | $ 17,978 | $ 16,696 |
Tax credit carry forwards | 724 | 675 |
Stock option book expense | 650 | 781 |
Allowance for doubtful accounts | 776 | 329 |
Allowance for inventory obsolescence | 570 | 480 |
Accruals not yet deductible for tax purposes | 357 | 418 |
Fixed assets | 851 | 1,255 |
Intangible assets | 337 | 0 |
Other | 954 | 876 |
Gross deferred tax assets | 23,197 | 21,510 |
Valuation allowance | (23,197) | (21,407) |
Deferred tax assets | 0 | 103 |
Deferred tax liabilities: | ||
Intangible assets | 0 | (35) |
Other | (200) | 0 |
Deferred tax liabilities | (200) | (35) |
Unrecognized tax benefits | 0 | 0 |
Total deferred tax liabilities, net | $ (200) | |
Total deferred tax assets, net | $ 68 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Decrease in deferred income tax assets | $ 7,000,000 | ||
Repatriation of foreign earnings | 11,200,000 | ||
Deferred tax assets, assets held for sale | $ 1,500,000 | ||
Deferred tax assets, stock based compensation | 650,000 | 781,000 | |
Valuation allowance, deferred tax assets | 23,197,000 | 21,407,000 | |
Tax credit carry forwards | $ 724,000 | ||
Tax credit carry forwards expiration year | 2021 | ||
Unrecognized tax benefits | $ 0 | 0 | $ 0 |
Excess tax deficiency for share-based payments under ASU 2016-09 | $ 284,000 | $ 663,000 | $ 309,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Jan. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase orders outstanding | $ 2,800 |
Customs and performance guarantees | $ 144 |
Stock Option Plans - Additional
Stock Option Plans - Additional Information (Detail) | 12 Months Ended | ||
Jan. 31, 2020USD ($)plan$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2018USD ($)$ / sharesshares | |
Stock Based Compensation [Line Items] | |||
Compensation expense related to stock-based awards granted | $ 854,000 | $ 781,000 | $ 903,000 |
Weighted average grant-date fair value of options granted | $ / shares | $ 1.77 | $ 1.80 | $ 2.02 |
Excess tax benefit from share-based compensation | $ 0 | $ 0 | $ 0 |
Number of plans with share-based awards outstanding | plan | 5 | ||
Intrinsic value of options exercised | $ 0 | ||
Number of options exercised | shares | 9,000 | 0 | 0 |
Fair value of options vested | $ 650,000 | $ 850,000 | $ 500,000 |
Options vested | shares | 335,000 | ||
Total unrecognized compensation expense related to unvested stock options | $ 1,000,000 | ||
Expense expected to be recognized over weighted average period | 1 year 7 months 6 days | ||
Restricted Stock | |||
Stock Based Compensation [Line Items] | |||
Total unrecognized compensation expense related to unvested restricted stock awards | $ 0 | ||
2006 Plan | |||
Stock Based Compensation [Line Items] | |||
Vesting period of stock options granted and outstanding | 3 years | ||
Contractual term of stock options granted and outstanding | 10 years | ||
Shares available for grant | shares | 1,050,000 | ||
1994 Plan | |||
Stock Based Compensation [Line Items] | |||
Vesting period of stock options granted and outstanding | 3 years | ||
Contractual term of stock options granted and outstanding | 10 years | ||
1998 Plan | |||
Stock Based Compensation [Line Items] | |||
Vesting period of stock options granted and outstanding | 3 years | ||
Contractual term of stock options granted and outstanding | 10 years | ||
2000 Plan | |||
Stock Based Compensation [Line Items] | |||
Vesting period of stock options granted and outstanding | 3 years | ||
Contractual term of stock options granted and outstanding | 10 years | ||
Director Plan | |||
Stock Based Compensation [Line Items] | |||
Vesting period of stock options granted and outstanding | 1 year | ||
Contractual term of stock options granted and outstanding | 10 years |
Stock Option Plans - Schedule o
Stock Option Plans - Schedule of Fair Value Option Award (Detail) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate, minimum | 1.47% | 2.51% | 1.89% |
Risk free interest rate, maximum | 2.53% | 2.75% | 2.01% |
Expected volatility, minimum | 49.00% | 49.00% | 42.00% |
Expected volatility, maximum | 51.00% | 49.00% | 47.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 3 years 11 months 22 days | 4 years | 4 years 10 months 13 days |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 6 years | 6 years 10 months 10 days | 6 years 10 months 13 days |
Stock Option Plans - Summary of
Stock Option Plans - Summary of Company's Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Number of Shares (in thousands) | |||
Outstanding, beginning (in shares) | 2,163,000 | ||
Granted (in shares) | 640,000 | ||
Exercised (in shares) | (9,000) | 0 | 0 |
Forfeited (in shares) | (88,000) | ||
Expired (in shares) | (266,000) | ||
Outstanding, ending (in shares) | 2,440,000 | 2,163,000 | |
Exercisable (in shares) | 1,461,000 | ||
Vested and expected to vest (in shares) | 2,400,000 | ||
Weighted Average Exercise Price | |||
Outstanding beginning (in usd per share) | $ 7.75 | ||
Granted (in usd per share) | 3.96 | ||
Exercised (in usd per share) | 2.80 | ||
Forfeited (in usd per share) | 3.73 | ||
Expired (in usd per share) | 29.86 | ||
Outstanding ending (in usd per share) | 4.51 | $ 7.75 | |
Exercisable (in usd per share) | 4.87 | ||
Vested and expected to vest (in usd per share) | $ 4.50 | ||
Weighted Average Remaining Contractual Term, outstanding (in years) | 7 years 29 days | 6 years 6 months 15 days | |
Weighted Average Remaining Contractual Term, exercisable (in years) | 5 years 11 months 9 days | ||
Weighted Average Remaining Contractual Term, Vested and expected to vest (in years) | 7 years 7 days | ||
Aggregate Intrinsic Value, Outstanding | $ 20 | $ 526 | |
Aggregate Intrinsic Value, Exercisable | 15 | ||
Aggregate Intrinsic Value, Vested and expected to vest | $ 20 |
Stock Option Plans - Restricted
Stock Option Plans - Restricted Stock and Changes During Period (Detail) - Restricted Stock shares in Thousands | 12 Months Ended |
Jan. 31, 2020$ / sharesshares | |
Number of Shares (in thousands) | |
Unvested, beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 43 |
Vested (in shares) | shares | (2) |
Canceled (in shares) | shares | (4) |
Unvested, end of period (in shares) | shares | 37 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in usd per share) | $ / shares | $ 0 |
Granted (in usd per share) | $ / shares | 3.98 |
Vested (in usd per share) | $ / shares | 3.98 |
Canceled (in usd per share) | $ / shares | 3.98 |
Unvested, end of period (in usd per share) | $ / shares | $ 3.98 |
Segment Reporting - Financial I
Segment Reporting - Financial Information by Business Segment (Assets) (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Fixed assets, net | $ 13,777 | $ 14,155 | $ 22,900 |
Intangible assets, net | 8,161 | 10,495 | 8,015 |
Goodwill | 2,531 | 2,531 | 2,531 |
Total Assets | 58,228 | 65,301 | 73,679 |
Marine Technology Products | |||
Segment Reporting Information [Line Items] | |||
Fixed assets, net | 4,791 | 4,635 | 3,790 |
Intangible assets, net | 8,048 | 10,417 | 8,015 |
Goodwill | 2,531 | 2,531 | 2,531 |
Total Assets | 47,211 | 44,832 | 35,879 |
Equipment Leasing | |||
Segment Reporting Information [Line Items] | |||
Fixed assets, net | 8,986 | 9,534 | 19,161 |
Intangible assets, net | 113 | 78 | 0 |
Goodwill | 0 | 0 | 0 |
Total Assets | $ 11,017 | $ 20,469 | $ 37,850 |
Segment Reporting - Financial_2
Segment Reporting - Financial Information by Business Segment (Revenues) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 13,257 | $ 10,663 | $ 8,898 | $ 9,857 | $ 12,328 | $ 14,651 | $ 8,350 | $ 7,613 | $ 42,675 | $ 42,942 | $ 48,276 |
Interest expense, net | (46) | 72 | 47 | ||||||||
Operating loss | (10,375) | (13,020) | (19,708) | ||||||||
Capital expenditures | 3,991 | 2,531 | 1,316 | ||||||||
Depreciation and amortization expense | 7,768 | 11,814 | 16,637 | ||||||||
Corporate expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Operating loss | (3,471) | (3,375) | (3,211) | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||
Marine Technology Products | Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 29,572 | 25,768 | 27,572 | ||||||||
Interest expense, net | 1 | 0 | (18) | ||||||||
Operating loss | (2,259) | (3,780) | (2,572) | ||||||||
Capital expenditures | 894 | 583 | 268 | ||||||||
Depreciation and amortization expense | 2,649 | 2,418 | 1,991 | ||||||||
Equipment Leasing | Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 13,213 | 17,383 | 20,919 | ||||||||
Interest expense, net | (47) | 72 | 65 | ||||||||
Operating loss | (4,667) | (5,872) | (13,930) | ||||||||
Capital expenditures | 3,097 | 1,948 | 1,048 | ||||||||
Depreciation and amortization expense | $ 5,141 | $ 9,402 | $ 14,652 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Revenues | $ 13,257 | $ 10,663 | $ 8,898 | $ 9,857 | $ 12,328 | $ 14,651 | $ 8,350 | $ 7,613 | $ 42,675 | $ 42,942 | $ 48,276 |
Eliminations | |||||||||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Revenues | $ 110 | $ 209 | $ 216 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Consolidated operating income | $ (10,375) | $ (13,020) | $ (19,708) |
Operating segments | Marine Technology Products | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | (2,259) | (3,780) | (2,572) |
Operating segments | Equipment Leasing | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | (4,667) | (5,872) | (13,930) |
Corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | (3,471) | (3,375) | (3,211) |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | $ 22 | $ 7 | $ 5 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues: | $ 13,257 | $ 10,663 | $ 8,898 | $ 9,857 | $ 12,328 | $ 14,651 | $ 8,350 | $ 7,613 | $ 42,675 | $ 42,942 | $ 48,276 |
Gross profit: | 5,947 | 4,051 | 2,882 | 3,741 | 3,411 | 5,224 | 1,860 | 1,245 | 16,621 | 11,740 | 6,084 |
Loss before income taxes: | (2,993) | (1,968) | (3,088) | (2,360) | (4,176) | (5,440) | (4,504) | (5,468) | (10,409) | (19,588) | (20,159) |
Incomes taxes (benefit): | 715 | 60 | 48 | 55 | (21) | (249) | 85 | 437 | 878 | 252 | 910 |
Net loss: | $ (3,708) | $ (2,028) | $ (3,136) | $ (2,415) | $ (4,155) | $ (5,191) | $ (4,589) | $ (5,905) | $ (11,287) | $ (19,840) | $ (21,069) |
Loss per common share – basic (in usd per share) | $ (0.35) | $ (0.21) | $ (0.30) | $ (0.24) | $ (0.38) | $ (0.47) | $ (0.41) | $ (0.52) | $ (1.10) | $ (1.78) | $ (1.82) |
Loss per common share – diluted (in usd per share) | $ (0.35) | $ (0.21) | $ (0.30) | $ (0.24) | $ (0.38) | $ (0.47) | $ (0.41) | $ (0.52) | $ (1.10) | $ (1.78) | $ (1.82) |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Jan. 31, 2020USD ($)CustomerSupplier | Jan. 31, 2019USD ($)Customer | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Minimum rate of consolidated accounts receivable (as a percent) | 10.00% | |
Foreign bank deposits | $ 2.3 | |
Number of suppliers manufacture land based seismic systems and equipment in use | Supplier | 2 | |
Credit Risk | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Concentration risk number of customer | Customer | 0 | 1 |
Aggregate amount of accounts receivable from customers | $ 2.2 |
Sales and Major Customers - Sum
Sales and Major Customers - Summary of Company's Revenues from Customers by Geographic Region, Outside the U.S. (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | $ 35,863 | $ 36,597 | $ 36,930 |
UK/Europe | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 20,366 | 15,200 | 11,835 |
Canada | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 3,731 | 2,049 | 807 |
Latin America | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 2,663 | 1,267 | 1,354 |
Asia/South Pacific | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 6,871 | 13,555 | 16,768 |
Eurasia | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 290 | 1,803 | 332 |
Other | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | $ 1,942 | $ 2,723 | $ 5,834 |
Sales and Major Customers - Add
Sales and Major Customers - Additional Information (Detail) - person | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting [Abstract] | |||
Number of customers with revenue exceeding 10% of total Company revenue | 0 | 0 | 2 |
Percentage change in total revenues by one customer (as a percent) | 10.00% | 10.00% | 10.00% |
Sale of Subsidiaries (Details)
Sale of Subsidiaries (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | 15 Months Ended | |||
Feb. 28, 2019USD ($) | Aug. 31, 2018USD ($)payment | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loss on sale of subsidiary | $ 0 | $ 5,405 | $ 0 | |||
Cumulative translation loss | $ 0 | $ 5,355 | $ 0 | |||
Seismic Asia Pacific Pty Ltd | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of subsidiaries | $ 660 | |||||
Proceeds in cash from sale of subsidiary | $ 240 | |||||
Note receivable term (in years) | 2 years | |||||
Proceeds in note receivable from sale of subsidiary | $ 420 | |||||
Working capital adjustment | $ 114 | |||||
Mitcham Seismic Eurasia LLC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of subsidiaries | $ 1,200 | |||||
Proceeds in cash from sale of subsidiary | $ 705 | |||||
Number of payments | payment | 8 | |||||
Interest rate on payments due from sale of subsidiary | 9.00% | |||||
Loss on sale of subsidiary | $ 4,900 | |||||
Cumulative translation loss | $ 5,400 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Allowance for doubtful accounts | |||
Allowance for Doubtful Accounts and Allowance for Obsolete Equipment and Inventory [Roll Forward] | |||
Balance at Beginning of Period | $ 2,113 | $ 6,167 | $ 5,904 |
Charged to Costs and Expenses | 2,000 | 212 | 1,027 |
Charged to Other Accounts | 0 | 0 | (23) |
Deductions Describe | (59) | (4,266) | (741) |
Balance at End of Period | 4,054 | 2,113 | 6,167 |
Allowance for obsolete equipment and inventory | |||
Allowance for Doubtful Accounts and Allowance for Obsolete Equipment and Inventory [Roll Forward] | |||
Balance at Beginning of Period | 1,222 | 1,675 | 952 |
Charged to Costs and Expenses | 298 | 132 | 989 |
Charged to Other Accounts | 1 | (32) | 20 |
Deductions Describe | (117) | (553) | (286) |
Balance at End of Period | $ 1,404 | $ 1,222 | $ 1,675 |