ASTRONOVA, INC., 10-K filed on 4/18/2022
Annual Report
v3.22.1
Cover Page - USD ($)
 12 Months Ended
Jan. 31, 2022
Apr. 13, 2022
Jul. 31, 2021
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Jan. 31, 2022    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Entity Registrant Name AstroNova, Inc.    
Entity Central Index Key 0000008146    
Current Fiscal Year End Date --01-31    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Well-known Seasoned Issuer No    
Entity Filer Category Accelerated Filer    
Trading Symbol ALOT    
Entity Shell Company false    
Entity Small Business true    
Entity Emerging Growth Company false    
Title of 12(b) Security Common Stock    
Security Exchange Name NASDAQ    
Entity Incorporation, State or Country Code RI    
Entity File Number 0-13200    
Document Annual Report true    
Document Transition Report false    
Entity Tax Identification Number 05-0318215    
Entity Address, Address Line One 600 East Greenwich Avenue    
Entity Address, City or Town West Warwick    
Entity Address, Postal Zip Code 02893    
Entity Address, State or Province RI    
City Area Code 401    
Local Phone Number 828-4000    
Entity Common Stock, Shares Outstanding   7,315,168  
Entity Public Float     $ 109,942,000
ICFR Auditor Attestation Flag true    
Auditor Name Wolf & Company, P.C    
Auditor Firm ID 392    
Auditor Location Boston, MA    
v3.22.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
CURRENT ASSETS    
Cash and Cash Equivalents $ 5,276 $ 11,439
Accounts Receivable, net of reserves of $826 in 2022 and $1,054 in 2021 17,124 17,415
Inventories 34,609 30,060
Employee Retention Credit Receivable 3,135  
Prepaid Expenses and Other Current Assets 3,634 1,807
Total Current Assets 63,778 60,721
Property, Plant and Equipment, net 11,441 12,011
Identifiable Intangibles, net 19,200 21,502
Goodwill 12,156 12,806
Deferred Tax Assets, net 5,591 5,941
Right of Use Asset 1,094 1,389
Other 1,695 1,103
TOTAL ASSETS 114,955 115,473
CURRENT LIABILITIES    
Accounts Payable 8,590 5,734
Accrued Compensation 3,512 2,917
Other Accrued Expenses 4,113 3,874
Current Portion of Long-Term Debt 1,000 5,326
Current Liability—Royalty Obligation 2,000 2,000
Current Liability—Excess Royalty Payment Due 235 177
Income Taxes Payable 323 655
Deferred Revenue 262 285
Total Current Liabilities 20,035 20,968
NON CURRENT LIABILITIES    
Long-Term Debt, net of current portion 8,154 7,109
Royalty Obligation, net of current portion 4,361 6,161
Long-Term Debt—PPP Loan   4,422
Lease Liabilities, net of current portion 808 1,065
Income Taxes Payable 399 681
Deferred Tax Liabilities 186 384
TOTAL LIABILITIES 33,943 40,790
Commitments and Contingencies
SHAREHOLDERS' EQUITY    
Preferred Stock 0 0
Common Stock 528 521
Additional Paid-in Capital 59,692 58,049
Retained Earnings 56,514 50,085
Treasury Stock, at Cost (33,974) (33,588)
Accumulated Other Comprehensive Loss, net of tax (1,748) (384)
TOTAL SHAREHOLDERS' EQUITY 81,012 74,683
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 114,955 $ 115,473
v3.22.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Statement of Financial Position [Abstract]    
Accounts Receivable, Reserves $ 826 $ 1,054
Preferred Stock, Par Value $ 10 $ 10
Preferred Stock, Shares Authorized 100,000 100,000
Preferred Stock, Shares Issued 0 0
Common Stock, Par Value $ 0.05 $ 0.05
Common Stock, Shares Authorized 13,000,000 13,000,000
Common Stock, Shares Issued 10,566,404 10,425,094
Treasury Stock, Shares 3,324,280 3,297,058
v3.22.1
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Income Statement [Abstract]      
Revenue $ 117,480 $ 116,033 $ 133,446
Cost of Revenue 73,741 74,673 84,688
Gross Profit 43,739 41,360 48,758
Costs and Expenses:      
Selling and Marketing 23,177 23,301 26,884
Research and Development 6,753 6,206 8,084
General and Administrative 9,553 9,420 11,357
Operating Expenses 39,483 38,927 46,325
Operating Income 4,256 2,433 2,433
Other Income (Expense):      
Gain on Extinguishment of Debt – PPP Loan 4,466    
Loss on Disposal of Assets (696)    
Interest Expense (677) (955) (682)
Gain (Loss) on Foreign Currency Transactions (288) 590 (448)
Other, net (27) 111 67
Other Income (Expense), net 2,778 (254) (1,063)
Income before Income Taxes 7,034 2,179 1,370
Income Tax Provision (Benefit) 605 895 (389)
Net Income $ 6,429 $ 1,284 $ 1,759
Net Income Per Common Share—Basic $ 0.89 $ 0.18 $ 0.25
Net Income Per Common Share—Diluted $ 0.88 $ 0.18 $ 0.24
Weighted Average Number of Common Shares Outstanding—Basic 7,207 7,104 7,024
Dilutive Effect of Common Stock Equivalents 132 62 214
Weighted Average Number of Common Shares Outstanding—Diluted 7,339 7,166 7,238
v3.22.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net Income $ 6,429 $ 1,284 $ 1,759
Other Comprehensive Income (Loss), net of taxes and reclassification adjustments:      
Foreign Currency Translation Adjustments (1,426) 710 (133)
Change in Value of Derivatives Designated as Cash Flow Hedge 0 (239) 122
(Gains) Losses from Cash Flow Hedges Reclassified to Income Statement 62 193 (264)
Cross-Currency Interest Rate Swap Termination 0 45 0
Other Comprehensive Income (Loss) (1,364) 709 (275)
Comprehensive Income $ 5,065 $ 1,993 $ 1,484
v3.22.1
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Jan. 31, 2019 $ 69,775 $ 511 $ 53,568 $ 49,511 $ (32,997) $ (818)
Beginning Balance, Shares at Jan. 31, 2019   10,218,559        
Share-Based Compensation 1,775   1,775      
Employee Option Exercises $ 782 $ 3 790   (11)  
Employee Option Exercises, Shares 57,175 65,121        
Restricted Stock Awards Vested, net $ (469) $ 3 (3)   (469)  
Restricted Stock Awards Vested, net, Shares   59,930        
Common Stock—Cash Dividend (1,972)     (1,972)    
Net Income 1,759     1,759    
Other Comprehensive Income (Loss) (275)         (275)
Ending Balance at Jan. 31, 2020 71,375 $ 517 56,130 49,298 (33,477) (1,093)
Ending Balance, Shares at Jan. 31, 2020   10,343,610        
Share-Based Compensation 1,819   1,819      
Employee Option Exercises $ 104 $ 1 103      
Employee Option Exercises, Shares 1,200 16,487        
Restricted Stock Awards Vested, net $ (111) $ 3 (3)   (111)  
Restricted Stock Awards Vested, net, Shares   64,997        
Common Stock—Cash Dividend (497)     (497)    
Net Income 1,284     1,284    
Other Comprehensive Income (Loss) 709         709
Ending Balance at Jan. 31, 2021 74,683 $ 521 58,049 50,085 (33,588) (384)
Ending Balance, Shares at Jan. 31, 2021   10,425,094        
Share-Based Compensation 1,493   1,493      
Employee Option Exercises $ 157 $ 1 156      
Employee Option Exercises, Shares 6,425 14,371        
Restricted Stock Awards Vested, net $ (386) $ 6 (6)   (386)  
Restricted Stock Awards Vested, net, Shares   126,939        
Net Income 6,429     6,429    
Other Comprehensive Income (Loss) (1,364)         (1,364)
Ending Balance at Jan. 31, 2022 $ 81,012 $ 528 $ 59,692 $ 56,514 $ (33,974) $ (1,748)
Ending Balance, Shares at Jan. 31, 2022   10,566,404        
v3.22.1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Statement of Stockholders' Equity [Abstract]    
Cash dividend per share $ 0.07 $ 0.28
v3.22.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Cash Flows from Operating Activities:      
Net Income $ 6,429 $ 1,284 $ 1,759
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:      
Depreciation and Amortization 3,994 5,983 6,284
Amortization of Debt Issuance Costs 44 75 49
Share-Based Compensation 1,493 1,819 1,775
Loss on Disposal of Assets 696    
Gain on Extinguishment of Debt (4,466)    
Deferred Income Tax Provision (Benefit) 210 (1,021) (1,638)
Changes in Assets and Liabilities:      
Accounts Receivable 77 2,702 3,594
Other Receivable – Employee Retention Credit Receivable (3,135)    
Inventories (4,883) 4,247 (3,938)
Accounts Payable and Accrued Expenses 4,052 (57) (2,732)
Income Taxes Payable (2,043) 1,482 (1,773)
Other (1,074) (970) (156)
Net Cash Provided by Operating Activities 1,394 15,544 3,224
Cash Flows from Investing Activities:      
Additions to Property, Plant and Equipment (1,796) (2,587) (2,906)
Net Cash Used by Investing Activities (1,796) (2,587) (2,906)
Cash Flows from Financing Activities:      
Net Cash Proceeds from Employee Stock Option Plans 60 9 654
Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan 96 95 128
Net Cash Used for Payment of Taxes Related to Vested Restricted Stock (386) (111) (469)
Net (Repayments)/Borrowings under Revolving Credit Facility   (6,500) 5,000
Payment of Minimum Guarantee Royalty Obligation (2,000) (2,000) (1,875)
Proceeds from Long-Term Debt – PPP Loan   4,422  
Proceeds from Long-Term Debt Borrowings 10,000 15,232  
Payoff of Long-Term Debt (12,576) (11,732)  
Principal Payments on Long-Term Debt (750) (3,958) (5,208)
Payments of Debt Issuance Costs   (100)  
Dividends Paid   (497) (1,972)
Net Cash Used by Financing Activities (5,556) (5,140) (3,742)
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents (205) (627) 139
Net Increase (Decrease) in Cash and Cash Equivalents (6,163) 7,190 (3,285)
Cash and Cash Equivalents, Beginning of Year 11,439 4,249 7,534
Cash and Cash Equivalents, End of Year 5,276 11,439 4,249
Supplemental Information:      
Cash Paid During the Period for Interest 342 677 531
Cash Paid During the Period for Income Taxes, Net of Refunds $ 2,414 $ 446 $ 2,913
v3.22.1
Summary of Significant Accounting Policies
 12 Months Ended
Jan. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1—Summary of Significant Accounting Policies
Basis of Presentation:
The accompanying financial statements and accompanying notes have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and are presented in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Our fiscal year end is January 31. Unless otherwise stated, all years and dates refer to our fiscal year.
Principles of Consolidation:
The consolidated financial statements include the accounts of AstroNova, Inc. and its subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation.
Reclassification:
Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation.
Use of Estimates:
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect these financial statements and accompanying notes using information that is reasonably available to us at this time. Some of the more significant estimates relate to revenue recognition; the allowances for doubtful accounts; inventory valuation; income taxes; estimated useful life and valuation of long-lived assets and goodwill; share-based compensation; and warranty reserves. Management’s estimates are based on the facts and circumstances available at the time estimates are made, historical experience, risk of loss, general economic conditions and trends, and management’s assessments of the probable future outcome of these matters, including our expectations at the time regarding the duration, scope and severity of the
COVID-19
pandemic. Consequently, actual results could differ from those estimates.
Cash and Cash Equivalents:
Highly liquid investments with an original maturity of
 
90 days or less
are considered to be cash equivalents. At January 31, 2022 and 2021,
$3.7 million and $4.6 million, respectively, was held in foreign bank accounts.
Inventories:
Inventories are stated at the lower of standard and average cost or net realizable value and include material, labor and manufacturing overhead.
Property, Plant and Equipment:
Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets (land improvements—10 to 20 years; buildings and leasehold improvements—10 to 45 years; machinery and equipment—3 to 10 years and computer equipment and software—3 to 10 years).
Revenue Recognition:
We recognize revenue in accordance with Accounting Standards Update (“ASU”)
2014-
09
, “Revenue
from Contracts with Customers (“Topic 606”).” The core principle of Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Topic 606 defines a five step process to recognize revenue and requires judgment and estimates within the revenue recognition process, including identifying contracts with customers, identifying performance obligations in the contract, determining and estimating the amount of any variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation and recognizing revenue when the entity satisfies each performance obligation.
The vast majority of our revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration we expect to receive in exchange for such products, which is generally at the contractually stated prices, and is recognized when we satisfy a performance obligation by transferring control of a product to a customer. The transfer of control generally occurs at one point in time, upon shipment, when title and risk of loss pass to the customer. Returns and customer credits are infrequent and are recorded as a reduction to revenue. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue.

Many of the contracts entered into with customers are commonly comprised of a combination of equipment, supplies, installation and/or training services. We determine performance obligations by assessing whether the products or services are distinct from other elements of the contract. In order to be distinct, the product must perform either on its own or with readily available resources and must be separate within the context of the contract.
Most of our hardware products contain embedded operating systems and data management software which is included in the purchase price of the equipment. The software is deemed incidental to the systems as a whole, as it is not sold or marketed separately, and its production costs are minor compared to those of the hardware system. Hardware and software elements are typically delivered at the same time and are accounted for as a single performance obligation for which revenue is recognized at the point in time when ownership is transferred to the customer.
Installation and training services vary based on certain factors such as the complexity of the equipment, staffing availability in a geographic location and customer preferences, and can range from a few days to a few months. The delivery of installation and training services are not assessed to determine whether they are separate performance obligations, as the amounts are not material to the contract.
Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by Topic 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer.
We may perform service at the request of the customer, generally for the repair and maintenance of products previously sold. These services are short in duration and total less than 11% and 9% of revenue for the years ended January 31, 2022 and 2021, respectively. Revenue is recognized as services are rendered and accepted by the customer. We also provide service agreements on certain of our Product Identification equipment. Service agreements are purchased separately from the equipment and provide for the right to obtain service and maintenance on the equipment for a period of typically one to two years. Accordingly, revenue on these agreements is recognized over the term of the agreements. The portion of service agreement contracts that are uncompleted at the end of any reporting period are included in deferred revenue.
We generally provide warranties for our products. The standard warranty period is typically
12
months for most hardware products except for airborne printers, which typically have warranties that extend for
3-5
years, consistent with industry practice. Such assurance-type warranties are not deemed to be separate performance obligations from the hardware product and costs associated with providing the warranties are accrued in accordance with ASC 450, “Contingencies,” as we have the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability. Our estimate of costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that our experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liability are recorded at that time, with an offsetting adjustment to cost of revenue. On occasion, customers request a warranty period longer than our standard warranty. In those instances, in which extended warranty services are separately quoted to the customer, an additional performance obligation is created, and the associated revenue is deferred and recognized as service revenue ratably over the term of the extended warranty period. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue.
We recognize an asset for the incremental direct costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. Costs related to obtaining sales contracts for our aerospace printer products have been capitalized and are being amortized based on the forecasted number of units sold over the estimated benefit term. We apply the practical expedient to expense costs incurred for costs to obtain a contract when the amortization period would have been less than a year. These costs include sales commissions paid to the internal direct sales team as well as to third-party representatives and distributors. Contractual
 
agreements with each of these parties outline commission structures and rates to be paid. Generally speaking, the contracts are all individual procurement decisions by the customers and do not include renewal provisions and as such the majority of the contracts have an economic life of significantly less than a year.

Accounts Receivables and Allowance for Doubtful Accounts:
Standard payment terms are typically
30
 days after shipment but vary by type and geographic location of our customer. Credit is extended based upon an evaluation of the customer’s financial condition. In circumstances where we are aware of a customer’s inability to meet its financial obligations, an allowance is established. The remainder of the allowance established is based on a variety of factors, including the age of amounts outstanding relative to their contractual due date, historical
write-off
experience and current market assessments. Accounts receivable are stated at their estimated net realizable value.
Research and Development Costs:
We charge costs to expense in the period incurred, and these expenses are presented in the consolidated statement of income. The following costs are included in research and development expense: salaries and benefits, external engineering service costs, engineering related information costs and supplies.
Foreign Currency Translation:
The financial statements of foreign subsidiaries and branches are measured using the local currency as the functional currency. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at
year-end
exchange rates with the translation adjustment recorded as a component of accumulated comprehensive income (loss) in shareholders’ equity. Revenues and expenses are translated at the average monthly exchange rates in effect during the related period. We do not provide for U.S. income taxes on foreign currency translation adjustments associated with our subsidiaries in Germany, Denmark and China since their undistributed earnings are considered to be permanently invested. Included in our consolidated statements of income was a net transactional foreign exchange loss of $0.3 
million in fiscal 2022, a net transaction foreign exchange gain of
$0.6 
million in fiscal 2021, and a net transaction foreign exchange loss of
$0.4 
million in fiscal 2020.
Advertising:
We expense advertising costs as incurred. Advertising costs including advertising production, trade shows and other activities are designed to enhance demand for our products and amounted to approximately $1.3 million; $0.9 million and $1.8 million in fiscal 2022, 2021 and 2020, respectively.
Long-Lived Assets:
Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, as determined by the discounting of future cash flows. There were no impairment charges for our long-lived assets in fiscal years 2022, 2021 or 2020.
Intangible Assets:
Intangible assets include the value of customer and distributor relationships, existing technology and
non-competition
agreements acquired in connection with business and asset acquisitions and are stated at cost (fair value at acquisition) less accumulated amortization. These intangible assets have a definite life and are amortized over the assets’ useful lives using a systematic and rational basis which is representative of the assets’ use. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. If necessary, an impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. There were no impairment charges for our intangible assets in fiscal years 2022, 2021 or 2020.
Goodwill:
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination. Management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances, such as declines in revenue, earnings or cash
 
flows, or material adverse changes in the business climate indicate that the carrying value of an asset might be impaired. Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment, or a business unit one level below an operating segment if discrete financial information for that business is prepared and regularly reviewed by segment management. However, components within an operating segment are aggregated as a single reporting unit if they have similar economic characteristics. We determined that each of our operating segments (Product Identification and T&M) represents a reporting unit for purposes of goodwill impairment testing.
 
The accounting guidance related to goodwill impairment testing allows for the performance of an optional qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Factors that management considers in this qualitative assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management and strategy and changes in the composition or carrying amount of net assets. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a quantitative assessment is required for the reporting unit. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test. The quantitative assessment compares the fair value of the reporting unit with its carrying value. If the quantitative assessment is performed, we estimate the fair value of our reporting units using a blended income and market approach. The income approach is based on a discounted cash flow model and provides a fair value estimate based upon the reporting unit’s expected long-term operating cash flow performance. The market approach, compares the reporting unit to publicly traded companies and transactions involving similar business, and requires the use of many assumptions and estimates including future revenue, expenses, capital expenditures, and working capital, as well as discount factors and income tax rates. If the fair value of the reporting unit exceeds the carrying value of the net assets including goodwill assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit’s net assets including goodwill exceeds the fair value of the reporting unit, then we record an impairment charge based on that difference. We performed a qualitative assessment for our fiscal 2022 analysis of goodwill. Based on this assessment, management does not believe that it is more likely than not that the carrying values of the reporting units exceed their fair values. Accordingly, no quantitative assessment was performed. There were no impairment charges for our goodwill in fiscal years 2022, 2021 or 2020.
Leases:
We account for our leases in accordance with Accounting Standard Codification (“ASC”) 842, Leases. ASC
842
requires a lessee to recognize assets and liabilities on the balance sheet for all leases, with the result being the recognition of a right of use (ROU) asset and a lease liability. The lease liability is equal to the present value of the minimum lease payments for the term of the lease, including any optional renewal periods determined to be reasonably certain to be exercised, using a discount rate determined at lease commencement. This discount rate is the rate implicit in the lease, if known; otherwise, the incremental borrowing rate for the expected lease term is used. Our incremental borrowing rate approximates the rate we would have to pay to borrow on a collateralized basis over a similar term at lease inception. The value of the ROU asset is equal to the initial measurement of the lease liability plus any lease payments made to the lessor at or before the commencement date and any unamortized initial direct costs incurred by the lessee, less any unamortized lease incentives received. Several of our lease contracts include options to extend the lease term and we include the renewal options for these leases in the determination of the ROU asset and lease liability when the likelihood of renewal is determined to be reasonably certain.
We enter into lease contracts for certain of our facilities at various locations worldwide. At inception of a contract, we determine whether the contract is or contains a lease. If we have a right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the asset, then the contract contains a lease.

There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. We have made an accounting policy election to apply the short-term exception, which does not require the capitalization of leases with terms of 12 months or less. All of our leases are classified as operating leases. Operating lease expense is recognized on a straight-line basis over the lease term and included in general
 
and administrative expense on the consolidated statement of income. ROU assets are classified as such on the consolidated balance sheet, short-term lease liabilities are classified in accrued expenses, and long-term lease liabilities are classified as such in the consolidated balance sheet. In the statement of cash flow, payments for operating leases are classified as operating activities.
In addition, several of our lease agreements include
non-lease
components for items such as common area maintenance and utilities which are accounted for separately from the lease component.
Income Taxes:
We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and tax basis of the assets and liabilities and are measured using statutory tax rates that will be in effect when the differences are expected to reverse. Our deferred taxes are presented as
non-current
in the accompanying consolidated balance sheet. An allowance against deferred tax assets is recognized when it is
more-likely-than-not
that some portion or all of the deferred tax assets will not be realized. At January 31, 2022 and 2021, a valuation allowance was provided for deferred tax assets attributable to certain domestic R&D and foreign tax credit carryforwards which are expected to expire unused.
We account for uncertain tax positions in accordance with the guidance provided in ASC 740, “Accounting for Income Taxes.” This guidance describes a recognition threshold and measurement attribute for the financial statement disclosure of tax positions taken or expected to be taken in a tax return and requires recognition of tax benefits that satisfy a
more-likely-than-not
threshold. ASC 740 also provides guidance on
de-recognition,
classification, interest and penalties, accounting in interim periods and disclosure.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The legislation had sweeping effects including various types of economic relief for impacted businesses and industries. One such relief provision was the Paycheck Protection Program, which provided short-term cash flow assistance to finance employee payroll and qualified expenses. On May 6, 2020, we entered into a loan agreement with, and executed a promissory note in favor of Greenwood Credit Union (“Greenwood”) pursuant to which we borrowed
$4.4 
million (the “PPP Loan”). On December 27, 2020 the Consolidated Appropriations Act, 2021, H.R. 133 was signed into law. The legislation permits the deductibility of expenses to the extent that the payment of such expenses results (or is expected to result) in the forgiveness of a loan (covered loan) guaranteed under the Paycheck Protection Program. We have fully utilized the PPP Loan proceeds for qualifying expenses and applied for forgiveness of the PPP Loan. Consistent with the legislation, we deducted the full
$4.4 
million of qualified expenses on our 2020 federal tax return. On June 15, 2021, Greenwood notified us that the United States Small Business Administration (the “SBA”) approved our application for forgiveness of the entire
$4.4 million principal balance of our PPP Loan and all accrued interest thereon. As a result, in the second quarter of fiscal 2022, we recorded a
 
$4.5 
million gain on extinguishment of debt. The PPP loan forgiveness is excluded from taxable income under Section 1106(i) of the CARES Act.
Net Income Per Common Share:
Basic net income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is based on the basic weighted average number of shares and potential common equivalent shares for stock options, restricted stock awards and restricted stock units outstanding during the period using the treasury stock method. In fiscal years 2022, 2021 and 2020, there were 345,085; 642,623
 
and 202,187, respectively, of common equivalent shares that were not included in the computation of diluted net income per common share because their inclusion would be anti-dilutive.
Fair Value Measurement:
We measure our assets and liabilities at fair value on a recurring and non-recurring basis in accordance with the guidance provided in ASC 820, “Fair Value Measurement and Disclosures,” which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management’s belief about
 
the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.
The fair value hierarchy is summarized as follows:
 
  •  
Level 1—Quoted prices in active markets for identical assets or liabilities;
 
  •  
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
 
  •  
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Cash and cash equivalents, accounts receivable, accounts payable, accrued compensation, other accrued expenses and income tax payable are reflected in the consolidated balance sheet at carrying value, which approximates fair value due to the short-term nature of these instruments.
Self-Insurance:
We are self-insured for U.S. medical and dental benefits for qualifying employees and maintain stop-loss coverage from a third party which limits our exposure to large claims. We record a liability associated with these benefits that includes an estimate of both claims filed and losses incurred but not yet reported based on historical claims experience. In estimating this accrual, we utilize an independent third-party broker to estimate a range of expected losses, which are based on analyses of historical data. Assumptions are closely monitored and adjusted when warranted by changing circumstances. Our liability for self-insured claims is included within accrued compensation in our consolidated balance sheets and was $0.2 million a
t
January 31, 2022 and 2021.
Share-Based Compensation:
Share-based compensation expense is measured based on the estimated fair value of the share-based award when granted and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). We have estimated the fair value of each option on the date of grant using the Black-Scholes option-pricing model. Our estimate of share-based compensation requires several complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options), the risk-free interest rate and our dividend yield. The stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average expected life of our options. Management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. In determining the expected life of the option grants, we have observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed the expected risk tolerance of different option groups. The risk-free interest rate is based on the actual U.S. Treasury zero coupon rates for bonds matching the expected term of the option as of the option grant date. The dividend assumption is based upon the prior year’s average dividend yield. No compensation expense is recognized for options that are forfeited for which the employee does not render the requisite service. Our accounting for share-based compensation for restricted stock awards (RSA) and restricted stock units (RSU) is also based on the fair value method. The fair value of the RSUs and RSAs is based on the closing market price of our common stock on the grant date. Reductions in compensation expense associated with forfeited awards are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience.
Cash flow from tax deductions in excess of the compensation cost
recognized
for those options (excess tax benefits) is classified with other income tax cash flows as an operating activity.
Share-based compensation becomes deductible for determining income taxes when the related award vests, is exercised, or is forfeited depending on the type of share-based award and subject to relevant tax law.
Derivative Financial Instruments:
We occasionally use derivative instruments as part of our overall strategy to manage exposure to market risks primarily associated with fluctuations in foreign currency exchange rates
 and
 
interest rates. Derivative instruments are recognized as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the statement of income during the current period. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) (OCI) and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the hedged transaction affects earnings (e.g., in “Interest Expense” when the hedged transactions are interest cash flows associated with floating-rate debt, or “Other, Net” for portions reclassified relating to the remeasurement of the debt). The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, are recognized in the statement of income during the current period.
Recent Accounting Pronouncements
Recently Adopted:
Income Taxes
In December 2019, the FASB issued ASU
2019-12,
“Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU
2019-12
is effective for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements and accompanying disclosures.
No other new accounting pronouncements, issued or effective during fiscal 2022, have had or are expected to have a material impact on our consolidated financial statements.
v3.22.1
Revenue Recognition
 12 Months Ended
Jan. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 2—Revenue Recognition
We derive revenue from the sale of (i) hardware including, digital color label printers and specialty OEM printing systems, portable data acquisition systems and airborne printers used in the flight deck and in the cabin of military, commercial and business aircraft, (ii) related consumable supplies including paper, labels, tags, inks, toners and ribbons, (iii) repairs and maintenance of equipment and (iv) service agreements.
 

Revenues disaggregated by primary geographic markets and major product types are as follows:
Primary geographical markets:
 
(In thousands)
  
2022
 
  
2021
 
  
2020
 
United States
    $ 68,185      $ 70,911      $ 83,671  
Europe
      31,922        29,029        29,617  
Canada
      6,519        5,574        5,719  
Asia
      5,926        5,105        8,316  
Central and South America
      3,271        3,950        4,145  
Other
      1,657        1,464        1,978  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 117,480      $ 116,033      $ 133,446  
    
 
 
     
 
 
     
 
 
  
Major product types:
 
(In thousands)
  
2022
 
  
2021
 
  
2020
 
Hardware
    $ 31,492      $ 34,111      $ 48,959  
Supplies
      73,244        71,772        71,838  
Service and Other
      12,744        10,150        12,649  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 117,480      $ 116,033      $ 133,446  
    
 
 
     
 
 
     
 
 
  
Contract Assets and Liabilities
We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time.
Our contract liabilities, which represent billings in excess of revenue recognized, are related to advanced billings for purchased service agreements and extended warranties. Contract liabilities were $262,000 and $285,000 at January 31,
 
2022 and January 31, 2021, respectively, and are recorded as deferred revenue in the consolidated balance sheet. The decrease in the deferred revenue balance during the period ended January 31,
 
2022 is primarily due to $269,000 of revenue recognized during the period that was included in the deferred revenue balance at January 31, 2021 offset by cash payments received in advance of satisfying performance obligations.
Contract Costs
We have determined that certain costs related to obtaining sales contracts for our aerospace printer products meet the requirement to be capitalized. In the second quarter of
fiscal 2022
, we extended the remaining useful life of these deferred costs from 6 years to 20 years and changed the amortization method from units sold to the straight-line method. We believe these changes, based on the life of the aircraft under the applicable sales contracts, appropriately reflects a more systematic and rational approach. This change is being treated as a change in accounting estimate that is affected by a change in accounting principle. The impact on net income was immaterial for the period ended January 31, 2022. The balance of these contract assets at January 31, 2021 was $0.9 million and in the second quarter of the current year, we incurred an additional $0.4 million in contract costs which will be amortized over 20 years. We amortized $60,000 of direct costs for the period ended January 31, 2022,
 
and the balance of deferred incremental direct costs net of accumulated amortization at January 31, 2022
,
was $1.3 million of which $0.1 million is reported in other current assets and $1.2 million is reported in other assets in the accompanying consolidated balance sheet.
 
v3.22.1
Intangible Assets
 12 Months Ended
Jan. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Note 3—Intangible Assets
Intangible assets are as follows:
 
 
 
January 31, 2022
 
 
January 31, 2021
 
(In thousands)
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
Miltope:
 
 
 
 
 
 
 
 
Customer Contract Relationships
   $ 3,100     $ (2,515 )    $ —       $ 585     $ 3,100     $ (2,284 )    $ —       $ 816  
RITEC:
                                                                
Customer Contract Relationships
     2,830       (1,557 )      —         1,273       2,830       (1,423 )      —         1,407  
TrojanLabel:
                                                                
Existing Technology
     2,327       (1,767 )      127       687       2,327       (1,405 )      196       1,118  
Distributor Relations
     937       (498 )      46       485       937       (396 )      89       630  
Honeywell:
                                                                
Customer Contract Relationships
     27,243       (11,073 )      —         16,170       27,243       (9,712 )      —         17,531  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Intangible Assets, net
   $ 36,437     $ (17,410 )    $     173     $ 19,200     $ 36,437     $ (15,220 )    $     285     $ 21,502  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
In the second quarter of the current year, we extended the remaining useful life of the customer contract relationship intangibles for Honeywell International, Inc. (“Honeywell”) from 6 years to 20 years and for the RITEC intangibles we changed the amortization method which was based on revenue with a remaining life of 4
 
years to the straight-line method with a
20-year
remaining life. We believe these changes, based on the life of the aircraft related to these intangibles, appropriately reflects a more systematic and rational approach to distributing the cost of these intangibles over their useful lives. The change in the amortization of the Honeywell customer contract relationship intangibles is being treated as a change in accounting estimate and the change in the amortization of the RITEC customer contract relationship intangibles is being treated as a change in accounting estimate that is effected by a change in accounting principle. The changes in amortization resulted in a $1.8 million decrease in amortization expense and a $1.8 million increase to net income for the period ended January 31, 2022
.
There were no impairments to intangible assets during the periods ended January 31, 2022 and 2021. Amortization expense of $2.2 million
,
 $4.1 million and $4.2 million with regard to acquired intangibles has been included in the consolidated statements of income for
the
years ended January 31, 2022, 2021 and 2020, respectively.
Estimated amortization expense for the next five fiscal years is as follows:
 
(In thousands)   
2023
     
2024
     
2025
     
2026
     
2027
  
Estimated amortization expense
    $ 1,632      $ 1,693      $ 1,008      $ 1,008      $ 1,008  
v3.22.1
Inventories
 12 Months Ended
Jan. 31, 2022
Inventory Disclosure [Abstract]  
Inventories
Note 4—Inventories
The components of inventories are as follows:
 
    
January 31,
  
    
2022
     
2021
  
(In thousands)              
Materials and Supplies
    $ 22,709      $ 20,265  
Work-in-Progress
      1,489        2,076  
Finished Goods
      19,718        16,371  
    
 
 
     
 
 
  
       43,916        38,712  
Inventory Reserve
      (9,307 )       (8,652 ) 
    
 
 
     
 
 
  
     $ 34,609      $ 30,060  
    
 
 
     
 
 
  
Finished goods inventory includes $3.4 million and $4.0 million of demonstration equipment at January 31, 2022 and 2021, respectively.
v3.22.1
Property, Plant and Equipment
 12 Months Ended
Jan. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Note 5—Property, Plant and Equipment
Property, plant and equipment consist of the following:
 
    
January 31,
  
    
2022
     
2021
  
(In thousands)              
Land and Land Improvements
    $ 1,004      $ 1,004  
Buildings and Leasehold Improvements
      12,666        12,642  
Machinery and Equipment
      23,238        23,346  
Computer Equipment and Software
      13,913        13,847  
    
 
 
     
 
 
  
Gross Property, Plant and Equipment
      50,821        50,839  
Accumulated Depreciation
      (39,380)        (38,828)  
    
 
 
     
 
 
  
Net Property Plant and Equipment
    $ 11,441      $ 12,011  
    
 
 
     
 
 
  
Depreciation expense on property, plant and equipment was $1.7 million for the year ended January 31,
 
2022 and $1.9 million and $2.0 million for the years ended January 31, 2020 and 2019, respectively.
During the current fiscal year, we
wrote-off
our Oracle EnterpriseOne enterprise resource planning (“ERP”) system due to the full implementation of a new ERP system in our US operations. The book value and related accumulated depreciation of the Oracle EnterpriseOne ERP system along with the balance of the related prepaid service and maintenance contracts have been removed from the accompanying consolidated balance sheet at January 31, 2022, and we have recorded a net loss on the disposal
of $696,000, which is included in other income (expense) in the accompanying consolidated income statement for the year ended January 31, 2022.
 
v3.22.1
Accrued Expenses
 12 Months Ended
Jan. 31, 2022
Payables and Accruals [Abstract]  
Accrued Expenses
Note 6—Accrued Expenses
Accrued expenses consist of the following:
 
    
January 31,
  
    
2022
     
2021
  
(In thousands)              
Warranty
    $ 834      $ 730  
Professional Fees
      411        546  
Freight
      347        57  
Lease Liability
      327        372  
Accrued Property & Sales Tax
      316        443  
Stockholder Relation Fees
      102        91  
Dealer Commissions
      139        57  
Other Accrued Expenses
      1,637        1,578  
    
 
 
     
 
 
  
     $ 4,113      $ 3,874  
    
 
 
     
 
 
  
v3.22.1
Credit Agreement and Long- Term Debt
 12 Months Ended
Jan. 31, 2022
Debt Disclosure [Abstract]  
Credit Agreement and Long- Term Debt
Note 7—Credit Agreement and Long-Term Debt
Credit Agreement
On March 24, 2021, we entered into a First Amendment to Credit Agreement (the “Amendment”) to our Amended & Restated Credit Agreement (the “A&R Credit Agreement,” as amended by the Amendment; the “Amended Credit Agreement”) with Bank of America, N.A., as lender (the “Lender”), and our subsidiaries, ANI ApS and TrojanLabel. The A&R Credit Agreement, which we entered into on July, 30, 2020, amended and restated the Credit Agreement dated as of February 28, 2017 (the “Prior Credit Agreement”) by and among us, ANI ApS, TrojanLabel and the Lender. Immediately prior to the closing of the Amendment, we repaid
$2.6 
million in principal amount of the term loan outstanding under the A&R Credit Agreement
The Amended Credit Agreement provides for (i) a term loan in the principal amount of $10.0 million, and (ii) a $22.5 million revolving credit facility available for general corporate purposes. At the closing of the Amendment, we borrowed the entire $10.0 
million term loan which was used to refinance, in full, the outstanding term loan under the A&R Credit Agreement. Under the Amended Credit Agreement, revolving credit loans may continue to be borrowed, at our option, in U.S. Dollars or, subject to certain conditions, Euros, British Pounds, Canadian Dollars or Danish Kroner.
Balances outstanding under the revolving line of credit for the years ended January 31, 2022 and 2021, bore interest at weighted average annual rates
of 4.10% and 3.41%, respectively and we incurred $4,000 and $188,000
 in fiscal 2022 and 2021
, respectively, for interest on this obligation. Additionally, for
fiscal year
s
ended January 31, 2022 and 2021, we incurred $50,000 and $8,300, respectively, for commitment fees on the undrawn portion of our revolving credit facility. Both the interest expense and commitment fees are included as interest expense in the accompanying consolidated income statement. At January 31, 2022, there is no balance outstanding on the revolving line of credit and the entire $22.5 million is available for borrowing.

The Amended Credit Agreement requires that the term loan be paid in quarterly installments on the last day of each of our fiscal quarters with the final payment due on September 30, 2025. We may voluntarily prepay the term loan, in whole or in part, from time to time without premium or penalty (other than customary breakage costs, if applicable). We may repay borrowings under the revolving credit facility at any time without premium or penalty (other than customary breakage costs, if applicable), but in any event no later
than September 30, 2025, at which time any outstanding revolving loans will be due and payable in full, and the revolving credit facility will terminate. We may reduce or terminate the revolving line of credit at any time,
subject to certain thresholds and conditions, without premium or penalty.

The Amended Credit Agreement includes an uncommitted accordion provision under which the term loan and/or revolving credit facility commitments may be increased in an aggregate principal amount not exceeding $10.0 million, subject to obtaining the agreement of the Lender and the satisfaction of certain other conditions.
On December 14, 2021, we and the Lender entered into a LIBOR Transition Amendment (the “LIBOR Amendment”) with regard to the Amended Credit Agreement. The LIBOR Amendment, among other things, (i) changes the rate under the Amended Credit Agreement for borrowings denominated in U.S. Dollars from a LIBOR-based rate to a BSBY (Bloomberg Short-Term Bank Yield Index)-based rate, subject to certain adjustments, (ii) changes the rate under the Amended Credit Agreement for borrowings denominated in British Pounds Sterling from a LIBOR-based rate to a SONIA (Sterling Overnight Index Average)-based rate, subject to certain adjustments, (iii) changes the rate under the Amended Credit Agreement for borrowings denominated in Euros from a LIBOR-based rate to a EURIBOR (Euro Interbank Offered Rate)-based rate, subject to certain adjustments, and (iv) updates certain other provisions of the Amended Credit Agreement regarding successor interest rates to LIBOR.
The interest rates under
 the
Amended Credit Agreement, giving effect to the LIBOR Amendment, are as follows: the term loan and revolving credit loans bear interest at a rate per annum equal to, at our option, either (a) the BSBY Rate as defined in the LIBOR Amendment (or in the case of revolving credit loans denominated in a Pounds Sterling, Euros or another currency other than U.S. Dollars, the SONIA Rate as defined in the LIBOR Amendment, EURIOBOR Rate as defined in the LIBOR Amendment, or the applicable quoted rate, respectively), plus a margin that varies within a range of 1.60% to 2.30% based on our consolidated leverage ratio, or (b) a fluctuating reference rate equal to the highest of (i) the federal fund rate plus 0.50%, (ii) Bank of America’s publicly announced prime rate, (iii) the BSBY Rate, SONIA Rate, EURIBOR Rate or other applicable quoted rate plus 1.00% or (iv) 0.50%, plus a margin that varies within a range of 0.60% to 1.30% based on our consolidated leverage ratio. In addition to certain other fees and expenses that we are required to pay to the Lender, we are required to pay a commitment fee on the undrawn portion of the revolving credit facility that varies within a range of 0.15% and 0.30% based on our consolidated leverage ratio.
As under the A&R Credit Agreement, the loans under the Amended Credit Agreement are subject to certain mandatory prepayments, subject to various exceptions, from (a) net cash proceeds from certain dispositions of property, (b) net cash proceeds from certain issuances of equity, (c) net cash proceeds from certain issuances of additional debt and (d) net cash proceeds from certain extraordinary receipts.
Amounts repaid under the revolving credit facility may be reborrowed, subject to continued compliance with the Amended Credit Agreement. No amount of the term loan that is repaid may be reborrowed.
We must comply with various customary financial and
non-financial
covenants under the Amended Credit Agreement. The financial covenants under the Amended Credit Agreement consist of a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. The primary
non-financial
covenants limit our and our subsidiaries’ ability to incur future indebtedness, to place liens on assets, to pay dividends or distributions on their capital stock, to repurchase or acquire their capital stock, to conduct mergers or acquisitions, to sell assets, to alter their capital structure, to make investments and loans, to change the nature of their business, and to prepay subordinated indebtedness, in each case subject to certain exceptions and thresholds as set forth in the Amended Credit Agreement, certain of which provisions were modified by the Amendment.
The Lender is entitled to accelerate repayment of the loans and to terminate its revolving credit commitment under the Amended Credit Agreement upon the occurrence of any of various customary events of default, which include, among other events, the following (which are subject, in some cases, to certain grace periods): failure to pay when due any principal, interest or other amounts in respect of the loans, breach of any of our covenants or representations under the loan documents, default under any other of our or our subsidiaries’ significant indebtedness agreements, a bankruptcy, insolvency or similar event with respect to us or any of our subsidiaries, a significant unsatisfied judgment against us or any of our subsidiaries, or a change of control.
Our obligations under the Amended Credit Agreement continue to be secured by substantially all of our personal property assets (including a pledge of the equity interests held in ANI ApS, in our wholly-owned German subsidiary AstroNova GmbH, and in our wholly-owned French subsidiary AstroNova SAS), subject to certain exceptions, and by a mortgage on our owned real property in West Warwick, Rhode Island.

Long-Term Debt
Long-term debt in the accompanying condensed consolidated balance sheets under the Amended Credit Agreement is as follows:
 
    
January 31,
  
(In thousands)   
2022
     
2021
  
USD Term Loan (2.35% as of January 31, 2022); maturity date of September 30, 2025
    $ 9,250      $ —    
USD Term Loan (4.65% as of January 31, 2021)
      —          12,576  
    
 
 
     
 
 
  
       9,250        12,576  
Debt Issuance Costs, net of accumulated amortization
      (96 )       (141 ) 
Current Portion of Term Loan
      (1,000 )       (5,326 ) 
    
 
 
     
 
 
  
Long-Term Debt
    $ 8,154      $ 7,109  
    
 
 
     
 
 
  
During the years ended January 31, 2022, 2021 and 2020, we recognized $0.3 million, $0.5 million and $0.4 million of interest expense
 on our long-term debt
, respectively, which was included in interest expense in the accompanying consolidated income statement.
The schedule of required principal payments remaining under the Amended Credit Agreement on long-term debt outstanding as of January 31, 2022 is as follows:
 
(In thousands)
  
 
 
Fiscal 2023
    $ 1,000  
Fiscal 2024
      1,000  
Fiscal 2025
      1,250  
Fiscal 2026
      6,000  
    
 
 
  
     $9,250  
    
 
 
  
v3.22.1
Paycheck Protection Program Loan
 12 Months Ended
Jan. 31, 2022
Debt Disclosure [Abstract]  
Paycheck Protection Program Loan
Note 8—Paycheck Protection Program Loan
On May 6, 2020, we entered into a loan agreement with, and executed a promissory note in favor of Greenwood pursuant to which we borrowed
$4.4 million
(the “PPP Loan”) from Greenwood under the Paycheck Protection Program (“PPP”) administered by the SBA and authorized by the CARES Act.
The PPP Loan, originally scheduled to mature on May 6, 2022, was unsecured and bore interest at a rate of 1.0% per annum, accruing from the loan date. No payments were due on the PPP Loan until the date on which
the lender determined the amount of the PPP Loan that is eligible for forgiveness. The PPP Loan was classified as long-term debt—PPP Loan in the condensed consolidated balance sheet at January 31, 2021.
 
On June 15,
2021
, Greenwood notified us that the SBA approved our application for forgiveness of the entire $4.4 million principal balance of our PPP Loan and all accrued interest thereon. As a result, in the second quarter of fiscal 2022, we recorded a $4.5 million gain on extinguishment of debt, which is included in the accompanying consolidated income statement for the period ended January 31, 2022.
v3.22.1
Derivative Financial Instruments and Risk Management
 12 Months Ended
Jan. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Risk Management
Note 9—Derivative Financial Instruments and Risk Management
In 2017, we entered into a cross-currency interest rate swap to manage the interest rate risk and foreign currency exchange risk associated with the floating-rate foreign currency-denominated term loan borrowing by ANI ApS and an interest rate swap to manage the interest rate risk associated with our variable rate term loan borrowing. Both swaps were designated as cash flow hedges of floating-rate borrowings.
Our cross-currency interest rate swap agreement effectively modified our exposure to interest rate risk and foreign currency exchange rate risk by converting our floating-rate debt denominated in U.S. Dollars on ANI
ApS’s books to a fixed-rate debt denominated in Danish Kroner for the term of the loan, thus reducing the impact of interest-rate and foreign currency exchange rate changes on future interest expense and principal repayments. This swap involved the receipt of floating interest rate amounts in U.S. Dollars in exchange for fixed-rate interest payments in Danish Kroner, as well as exchanges of principal at the inception spot rate, over the life of the term loan.

The interest rate swap agreement effectively modified our exposure to interest rate risk by effectively converting our floating-rate term-loan debt to fixed-rate debt, thus reducing the impact of interest-rate changes on future interest expense. This swap involved the receipt of floating rate amounts in U.S. Dollars in exchange for fixed-rate payments in U.S. dollars over the life of the term loan.
As a direct result of the terms of the Lender’s conditions for entry into the A&R Credit Agreement, on July 30, 2020, we terminated these two
s
waps. The terms of the A&R Credit Agreement caused those swaps to cease to be effective hedges of the underlying exposures. The termination of the
s
waps was contracted immediately prior to the end of the second quarter of fiscal 2021 at a cash cost of approximately $0.7 million, which was settled in the third quarter of fiscal 2021. Upon termination, the remaining balance of $58,000 in accumulated other comprehensive loss related to the cross-currency interest rate swap was reclassified into earnings as the forecasted foreign currency interest payments will not occur and is included in other expense in the accompanying consolidated statements of income for the period ended January 31, 2021. The remaining balance in accumulated other comprehensive loss related to the interest rate swap of $0.2 million is being amortized into earnings through the original term of the hedge relationship as the underlying floating interest rate debt still exists.

The following tables present the impact of the derivative instruments in our consolidated financial statements for the years ended January 31, 2022 and 2021:
 
    
Years Ended
  
Cash Flow Hedge
(In thousands)
   
Amount of Gain(Loss)
Recognized in OCI
on
Derivative
    
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
     
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
  
  
January 31,
2022
     
January 31,
2021
     
January 31,
2022
    
January 31,
2021
  
Swap contracts
    $ —      $ (360 )      Other Income      $ (79 )    $ (288 ) 
    
 
 
     
 
 
             
 
 
    
 
 
  
At January 31, 202
2
, we expect to reclassify approximately $0.1 million of
 
net losses on the frozen OCI balance associated with the terminated interest rate swap from accumulated other comprehensive loss to earnings during the next 12 months due to the payment of variable interest associated with the floating interest rate debt.
v3.22.1
Employee Retention Credit
 12 Months Ended
Jan. 31, 2022
Employee Retention Credit Disclosure [Abstract]  
Employee Retention Credit
Note 10—Employee Retention Credit
The CARES Act provides an employee retention credit (“ERC”) that is a refundable tax credit against certain employer taxes. On December 27, 2020, Congress enacted the Taxpayer Certainty and Disaster Tax Relief Act of 2020, which amended and extended ERC availability under Section 2301 of the CARES Act. Before the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, we were ineligible for the ERC because we received the PPP Loan. Following enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, we and other businesses that received loans under that program became retroactively eligible for the ERC.
As a result of the foregoing legislation, we were eligible to claim a refundable tax credit against the employer share of Social Security taxes equal to seventy percent (70%) of the qualified wages that we paid to our employees between December 31, 2020 and June 30, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter in 2021 for a maximum ERC per employee of $7,000 per calendar quarter in 2021.
We evaluated our eligibility for the ERC in the second quarter of calendar year 2021. In order to qualify for the ERC, we needed to experience a 20% reduction in gross receipts from either (1) the same quarter in calendar
year 2019 or (2) the immediately preceding quarter to the corresponding calendar quarter in 2019. We determined that we qualified for the employee retention credit under the first scenario for wages paid in calendar year 2020 and the first calendar quarter of 2021. In the second quarter of the current year, we amended certain payroll tax filings and applied for a refund of $3.1 million. Since there is no US GAAP guidance for
for-profit
business entities that receive government assistance that is not in the form of a loan, an income tax credit or revenue from a contract with a customer, we determined the appropriate accounting treatment by analogy to other guidance. We accounted for the employee retention credit by analogy to International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, of International Financial Reporting Standards (IFRS). Under an IAS 20 analogy, a business entity would recognize the credit on a systematic basis over the periods in which the entity recognizes the payroll expenses for which the grant (i.e., tax credit) is intended to compensate when there is reasonable assurance (i.e., it is probable) that the entity will comply with any conditions attached to the grant and the grant (i.e., tax credit) will be received.
We recorded a $3.1 million receivable in the second quarter of fiscal 2022 for the ERC rece
i
vable. This amount remains outstanding as of January 31, 2022 and is included as such in the accompanying consolidated balance sheet. Th
e $3.1 million of ERCs was recognized as a reduction in employer payroll taxes and allocated to the financial statement captions from which the employee’s taxes were originally incurred. As a result, we recorded a reduction in expenses of $1.7 million in cost of revenue, $0.8 million in selling and marketing, $0.3 million in research and development and $0.3 milli
on
in general and administrative which is reflected in the accompanying consolidated income statement for the year ended January 31, 2022.
 
Subsequent to year end, on March 22,
2022
, we received the $3.1 million for the ERC.
v3.22.1
Royalty Obligation
 12 Months Ended
Jan. 31, 2022
Royalty Obligation Disclosure [Abstract]  
Royalty Obligation
Note 11—Royalty Obligation
In fiscal 2018, AstroNova, Inc. entered into an Asset Purchase and License Agreement with Honeywell International, Inc. to acquire an exclusive, perpetual, world-wide license to manufacture Honeywell’s narrow-format flight deck printers for two aircraft families along with certain inventory used in the manufacturing of the licensed printers. The purchase price included a guaranteed minimum royalty payment of $15.0 million, to be paid in quarterly installments over a
ten-year
period. Royalty payments are based on gross revenues from the sales of the printers, paper and repair services of the licensed products. The royalty rates vary based on the year in which they are paid or earned and product sold or service provided, and range from single-digit to mid double-digit percentages of gross revenue.
The guaranteed minimum royalty payment obligation was recorded at the present value of the minimum annual royalty payments using a present value factor of 2.8%, which is based on the estimated
after-tax
cost of
debt for similar
companies. As of January 31, 2022, we had paid an aggregate of $7.5
 million of the guaranteed minimum royalty obligation. At January 31, 2022, the current portion of the outstanding guaranteed minimum royalty obligation of $2.0
 million is to be paid over the next twelve months and is reported as a current liability and the remainder of $4.4
 million is reported as a long-term liability on our consolidated balance sheet. In addition to the guaranteed minimum royalty payments, for the periods ended January 31, 2022 and January 31, 2021, we also incurred excess royalty expense of $0.5 
million and $31
 thousand, respectively, which is included in cost of revenue in our consolidated statements of income. A total of $0.2
 million of excess royalty is payable and reported as a current liability on our consolidated balance sheet at January 31, 2022.
v3.22.1
Leases
 12 Months Ended
Jan. 31, 2022
Leases [Abstract]  
Leases
Note 12—Leases
We enter into lease contracts for certain of our facilities at various locations worldwide. Our leases have remaining lease terms of one to six years, some of which include options to extend the lease term for periods of up to five years when it is reasonably certain
that we
will exercise such options.
Balance sheet and other information related to our leases is as follows:
 
Operating Leases
(In thousands)
   
Balance Sheet Classification
   
January 31,
2022
     
January 31,
2021
  
Lease Assets
    Right of Use Assets    $ 1,094      $ 1,389  
Lease Liabilities—Current
    Other Accrued Expenses      327        372  
Lease Liabilities—Long Term
    Lease Liabilities    $ 808      $ 1,065  
Lease cost information is as follows:
 
Operating Leases
(In thousands)
  
Statement of Income Classification
 
  
2022
 
  
2021
 
Operating Lease Costs
        General and Administrative Expense        $ 510      $ 485  
At January 31, 2022, maturities of operating lease liabilities are as follows:
 
(In thousands)
       
2023
    $ 327  
2024
      308  
2025
      203  
2026
      159  
2027
      153  
Thereafter
      91  
    
 
 
  
Total Lease Payments
      1,241  
Less: Imputed Interest
      (106 ) 
    
 
 
  
Total Lease Liabilities
    $ 1,135  
    
 
 
  
As of January 31, 2022, the weighted-average remaining lease term and weighted-average discount rate for our operating leases are 4.5 years and 3.85%, respectively. We calculated the weighted-average discount rate using incremental borrowing rates, which equal the rates of interest that we would pay to borrow funds on a fully collateralized basis over a similar term.
Supplemental cash flow information related to leases is as follows:

 
(In thousands)
  
 
 2022 
 
  
 
2021
 
Cash paid for operating lease liabilities
    $ 372      $ 429  
v3.22.1
Accumulated Other Comprehensive Loss
 12 Months Ended
Jan. 31, 2022
Equity [Abstract]  
Accumulated Other Comprehensive Loss
Note 13—Accumulated Other Comprehensive Income (Loss)
The changes in the balance of accumulated other comprehensive income (loss) by component are as follows:
 
(In thousands)
  
Foreign Currency
Translation
Adjustments
 
 
Net
Unrealized
Gain (Losses)
on Cash Flow
Hedges
 
 
Total
 
Balance at January 31, 2019
   
$
 (852
) 
  
$
 34
 
  
$
 (818
) 
Other Comprehensive Income (Loss) before reclassification
  
   (133
) 
     122
 
  
 
 (11
) 
Amounts reclassified from AOCI to Earnings
  
  
—  
 
     (264
) 
  
 
 (264
) 
    
 
 
    
 
 
    
 
 
  
Other Comprehensive Loss
  
 
 (133
) 
 
 
 (142
) 
 
 
 (275
) 
    
 
 
    
 
 
    
 
 
  
Balance at January 31, 2020
  
$
 (985
) 
 
$
 (108
) 
 
$
 (1,093
) 
Other Comprehensive Income (Loss) before reclassification
  
 
 710
 
 
 
 (239
) 
 
 
 471
 
Amounts Reclassified from AOCI to Earnings
  
 
—  
 
 
 
 193
 
 
 
 193
 
Cross-Currency Interest Rate Swap Termination
  
 
—  
 
 
 
 45
 
 
 
 45
 
    
 
 
    
 
 
    
 
 
  
Other Comprehensive Income (Loss)
  
 
 710
 
 
 
 (1
) 
 
 
 709
 
Balance at January 31, 202
1
 
$
(275
)
 
$
(109
)
 
$
(384
)
 
Other Comprehensive Loss before reclassificatio
n
 
 
(1,426
)
 
 
—
 
 
 
 (1,426
)
 
Amounts Reclassified from AOCI to Earning
s
 
 
— 
 
 
 
62
 
 
 
62
 
Other Comprehensive Income (Loss
)
 
 
(1,426
)
 
 
 
62
 
 
 
 (1,364
)
Balance at January 31, 202
2
 
$
(1,701
)
 
$
(47
)
 
$
(1,748
)
The amounts presented above in other comprehensive income (loss) are net of taxes except for translation adjustments associated with our German and Danish subsidiaries.
v3.22.1
Shareholders' Equity
 12 Months Ended
Jan. 31, 2022
Federal Home Loan Banks [Abstract]  
Shareholders' Equity
Note 14—Shareholders’ Equity
During fiscal 2022 and 2021, certain of our employees delivered a total of 27,222 and 15,357 shares, respectively, of our common stock to satisfy the exercise price and related taxes for stock options exercised and restricted stock vesting. The shares delivered were valued at a total of $0.4 million and $0.1 million, respectively, and are included in treasury stock in the accompanying consolidated balance sheets at January 31, 2022 and 2021. These transactions did not impact the number of shares authorized for repurchase under our current repurchase program.
v3.22.1
Share-Based Compensation
 12 Months Ended
Jan. 31, 2022
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Note 15—Share-Based Compensation
The Company maintains the following share-based compensation plans:
Stock Plans:
We have one equity incentive plan from which we are authorized to grant equity awards, the AstroNova, Inc. 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan provides for, among other things, the issuance of awards, including incentive stock options,
non-qualified
stock options, stock appreciation rights, time-based restricted stock units (“RSUs”), or performance-based restricted stock units (“PSUs”) and restricted stock awards (RSAs). The 2018 Plan authorizes the issuance of up to
950,000
shares of common stock, plus an additional number of shares equal to the number of shares subject to awards granted under the previous equity incentive plans that are forfeited, cancelled, satisfied without the issuance of stock, otherwise terminated (other than by exercise), or, for shares of stock issued pursuant to any unvested award, that are reacquired by us at not more
 
than the grantee’s purchase price (other than by exercise). Under the 2018 Plan, all awards to employees generally have a minimum vesting period of one year. Options granted under the 2018 Plan must be issued at an exercise price of not less than the fair market value of our common stock on the date of grant and expire after ten years. Under the 2018 Plan, there were 135,403
 
unvested RSUs;
43,529
 
unvested PSUs
; 20,410 unvested RSAs and options to purchase an aggregate of 135,500 shares outstanding as of January 31, 2022.
In addition to the 2018 Plan, we previously granted equity awards under our 2015 Equity Incentive Plan (the “2015 Plan”) and our 2007 Equity Incentive Plan (the “2007 Plan”). No new awards may be issued under either the 2007 or 2015 Plans, but outstanding awards will continue to be governed by those plans. As of January 31, 2022, options to purchase an aggregate of 323,468 shares were outstanding under the 2007 Plan and options to purchase an aggregate of 139,075 shares were outstanding under the 2015 Plan.
We also have a
Non-Employee
Director Annual Compensation Program (the “Program”), under which each of our
non-employee
directors automatically receives a grant of restricted stock on the date of their
re-election
to our board of directors. The number of whole shares granted is equal to the number calculated by dividing the stock component of the director compensation amount determined by the compensation committee for that year by the fair market value of our stock on that day. The value of the restricted stock award for fiscal 2022 was
$60,000. Shares of restricted stock granted under the Program become vested on the first anniversary of the date of grant, conditioned upon the recipient’s continued service on our board of directors through that date.
Share-Based Compensation:
Share-based compensation expense has been recognized as follows:
 
(In thousands)                     
Stock Options
    $ 210      $ 517      $ 616  
Restricted Stock Awards and Restricted Stock Units
      1,266        1,285        1,136  
Employee Stock Purchase Plan
      17        17        23  
    
 
 
     
 
 
     
 
 
  
Total
    $ 1,493      $ 1,819      $ 1,775  
    
 
 
     
 
 
     
 
 
  
 
Stock Options:
Aggregated information regarding stock options granted under the plans is summarized below:
 
 
  
Number
of Shares
 
 
Weighted-
Average
Exercise
Price Per
Share
 
Options Outstanding, January 31, 2019
      771,145     $ 14.30  
Options Granted
      —         —    
Options Exercised
      (57,175 )      11.60  
Options Forfeited
      (34,526 )      15.73  
Options Cancelled
      (400 )      6.22  
    
 
 
    
 
 
  
Options Outstanding, January 31, 2020
      679,044     $ 14.46  
Options Granted
      —         —    
Options Exercised
      (1,200 )      7.60  
Options Forfeited
      (54,361 )      12.89  
Options Cancelled
      (1,400 )      7.36  
    
 
 
    
 
 
  
Options Outstanding, January 31, 2021
      622,083     $ 14.63  
Options Granted
      —         —    
Options Exercised
      (6,425 )      9.34  
Options Forfeited
      (17,615 )      15.09  
Options Cancelled
      —         —    
    
 
 
    
 
 
  
Options Outstanding, January 31, 2022
      598,043     $ 14.67  
    
 
 
    
 
 
  
Set forth below is a summary of options outstanding at January 31, 2022:
 
Outstanding
 
  
Exercisable
 
Range of
Exercise prices
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted-
Average
Remaining
Contractual Life
 
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted
Average
Remaining
Contractual
Life
 
$5.00-10.00
      35,844      $ 7.97        0.5        35,844      $ 7.97        0.5  
$10.01-15.00
      345,749        13.62        3.9        345,749        13.62        3.9  
$15.01-20.00
      216,450        17.48            5.8        209,900        17.43        5.8  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
       598,043      $ 14.67            4.4        591,493      $ 14.63        4.3  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
No options were granted during fiscal 2022 or fiscal 2021. As of January 31, 2022, there was $8,000 of unrecognized compensation expense related to the unvested stock options granted under the plans. This expense is expected to be recognized over a weighted-average period of 0.3 years.
As of January 31, 2022, the aggregate intrinsic value (the aggregate difference between the closing stock price of our common stock on January 31, 2022, and the exercise price of the outstanding options) that would have been received by the option holders if all options had been exercised was $0.3 million for all exercisable options and $0.3 million for all options outstanding. The total aggregate intrinsic value of options exercised during fiscal 2022, 2021 and 2020 was $26,000, $4,000 and $0.5 million, respectively.
Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs):
Aggregated information regarding RSUs and RSAs granted under the Plan is summarized below:
 
 
  
RSAs & RSUs
 
 
Weighted-Average
Grant Date Fair Value
 
Outstanding at January 31, 2019
      133,667     $ 16.90  
Granted
      119,522       19.86  
Vested
      (59,930 )      14.50  
Forfeited
      (58,625 )      19.00  
    
 
 
    
 
 
  
Outstanding at January 31, 2020
      134,634     $ 16.79  
Granted
      245,131       7.61  
Vested
      (64,997 )      17.28  
Forfeited
      (117,355 )      8.83  
    
 
 
    
 
 
  
Outstanding at January 31, 2021
      197,413     $ 9.96  
Granted
      151,406       14.51  
Vested
      (126,939 )      10.43  
Forfeited
      (22,538 )      14.26  
    
 
 
    
 
 
  
Outstanding at January 31, 2022
      199,342     $ 12.63  
    
 
 
    
 
 
  
As of January 31, 2022, there was $1.7 million of unrecognized compensation expense related to unvested RSUs and RSAs. This expense is expected to be recognized over a weighted average period of 1.0 years.
Employee Stock Purchase Plan (ESPP):
Our ESPP allows eligible employees to purchase shares of common stock at a 15% discount from fair market value on the date of purchase. A total of 247,500 shares were initially reserved for issuance under this plan. Summarized plan activity is as follows:
 
    
    2022    
     
    2021    
     
    2020    
  
Shares Reserved, Beginning
      10,374        24,974        33,853  
Shares Purchased
      (8,092 )       (14,600 )       (8,879 ) 
    
 
 
     
 
 
     
 
 
  
Shares Reserved, Ending
      2,282        10,374        24,974  
    
 
 
     
 
 
     
 
 
  
v3.22.1
Income Taxes
 12 Months Ended
Jan. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
Note 16—Income Taxes
The components of income (loss) before income taxes are as follows:
 
    
2022
     
2021
    
2020
  
(In thousands)                    
Domestic
    $ 5,046      $ (1,193 )    $ 1,930  
Foreign
      1,988        3,372       (560 ) 
    
 
 
     
 
 
    
 
 
  
     $ 7,034      $ 2,179     $ 1,370  
    
 
 
     
 
 
    
 
 
  
 
The components of the provision/(benefit) for income taxes are as follows:
 
    
2022
    
2021
    
2020
  
(In thousands)                   
Current:
                         
Federal
    $ (183 )    $ 1,272     $ 660  
State
      76       224       221  
Foreign
      501       420       368  
    
 
 
    
 
 
    
 
 
  
       394       1,916       1,249  
    
 
 
    
 
 
    
 
 
  
Deferred:
                         
Federal
    $ 180     $ (910 )    $ (1,364 ) 
State
      177       (189 )      (282 ) 
Foreign
      (146 )      78       8  
    
 
 
    
 
 
    
 
 
  
       211       (1,021 )      (1,638 ) 
    
 
 
    
 
 
    
 
 
  
     $ 605     $ 895     $ (389 ) 
    
 
 
    
 
 
    
 
 
  
Total income tax provision/(benefit) differs from the expected tax provision/(benefit) as a result of the following:
 
 
  
2022
 
 
2021
 
 
2020
 
(In thousands)
  
 
 
 
 
 
 
 
 
Income Tax Provision at Statutory Rate
    $ 1,477     $ 458     $ 288  
Return to Provision Adjustment
      368       (2 )      (207 ) 
State Taxes, Net of Federal Tax Effect
      143       28       (48 ) 
Denmark Statutory Audit
      —         341       —    
Foreign Rate Differential
      61       197       315  
Change in Valuation Allowance
      57       (81 )      256  
Meals and Entertainment
      9       11       31  
Canada Withholding Taxes
      —         62       —    
Global Intangible Low Taxed Income
      —         14       107  
Foreign Tax Credits
      —         —         (344 ) 
Foreign Derived Intangible Income
      (55 )      (150 )      (107 ) 
Share Based Compensation
      (95 )      171       (145 ) 
R&D Credits
      (180 )      (157 )      (209 ) 
Change in Reserves Related to ASC 740 Liability
      (245 )      (10 )      (352 ) 
PPP Loan Forgiveness
      (937 )      —         —    
Other
      2       13       26  
    
 
 
    
 
 
    
 
 
  
     $ 605     $ 895     $ (389 ) 
    
 
 
    
 
 
    
 
 
  
Our effective tax rate for 2022 was 8.6% compared to 41.1% in 2021 and (28.4)% in 2020. The decrease in the effective tax rate in 2022 from 2021 is primarily related to the PPP loan forgiveness
tax-exempt
income. Specific items decreasing the effective tax rate include PPP loan forgiveness
tax-exempt
income, R&D tax credits, foreign derived intangible income (“FDII”) deduction, and change in reserves related to ASC 740 liabilities. This decrease was offset by state taxes, return to provision adjustments, and taxes on foreign earnings.
The increase in the effective tax rate in 2021 from 2020 is primarily related to the change in mix of income between relevant jurisdictions in which we are subject to income taxes. Specific items increasing the effective tax rate include foreign rate differential, Denmark statutory audit adjustments, stock-based compensation, and Canada withholding taxes. This increase was offset by the foreign derived intangible income (“FDII”) deduction, the release of a valuation allowance in China, and R&D tax credits expected to be utilized.
 
The components of deferred income tax expense arise from various temporary differences and relate to items included in the statement of income. The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities are as follows:
 
    
January 31,
  
    
2022
    
2021
  
(In thousands)             
Deferred Tax Assets:
                 
Inventory
    $ 2,159     $ 2,700  
Honeywell Royalty Liability
      2,655       2,590  
State R&D Credits
      1,925       1,546  
Share-Based Compensation
      593       600  
Bad Debt
      213       245  
Warranty Reserve
      198       176  
Compensation Accrual
      322       159  
Net Operating Loss
      152       154  
ASU 842 Adjustment
 –
Lease Liability
      93       125  
Unrecognized State Tax Benefits
      64       101  
Foreign Tax Credit
      154       83  
Deferred Service Contract Revenue
      61       68  
Other
      224       308  
    
 
 
    
 
 
  
       8,813       8,855  
Deferred Tax Liabilities:
                 
Accumulated Tax Depreciation in Excess of Book Depreciation
      455       752  
Intangibles
      767       399  
ASU 842 Adjustment – Lease Liability
      90       119  
Other
      318       307  
    
 
 
    
 
 
  
       1,630       1,577  
    
 
 
    
 
 
  
Subtotal
      7,183       7,278  
Valuation Allowance
      (1,778 )      (1,721 ) 
    
 
 
    
 
 
  
Net Deferred Tax Assets
    $ 5,405     $ 5,557  
 
  
 
 
 
 
 
 
 
 
 
 
 
Deferred taxes are reflected in the consolidated balance sheet as follows:
 
 
 
    
January 31,
  
    
2022
    
2021
  
Deferred Tax Assets
  
 
5,651
 
 
 
5,941
 
Deferred Tax Liabilities
  
 
(246
) 
 
 
(384
) 
 
  
 
 
 
 
 
 
 
Total Net Deferred Tax Assets
  
$
5,405
 
 
$
5,557
 
 
  
 
 
 
 
 
 
 
The valuation allowances of $1.8 million at January 31, 2022 and $1.7 million at January 31, 2021, relate to domestic research and development tax credit carryforwards and foreign tax credit carryforwards which are expected to expire unused.
At January 31, 2022, we had net operating loss carryforwards of $0.6 million in China, which expire in 2023 through 2027. We have net operating loss carryforwards of less than $0.1 million in France, which can be carried forward indefinitely. We expect to utilize the net operating loss carryforwards in China and France before expiration.
At January 31, 2022, we had state research credit carryforwards of approximately $1.6 million which expire in 2022 through 2029. Additionally, we had $0.2 million of foreign tax credit
s
. We maintain a full valuation allowance against these credits as we expect these credits to expire unused.

 
We believe that it is reasonably possible that some unrecognized tax benefits, accrued interest and penalties could decrease income tax expense in the next year due to either the review of previously filed tax returns or the expiration of certain statutes of limitation. The changes in the balances of unrecognized tax benefits, excluding interest and penalties are as follows:
 
    
2022
    
2021
    
2020
  
(In thousands)                   
Balance
, beginning of the year
    $ 384     $ 362     $ 618  
Increases in prior period tax positions
      63       59       —    
Increases in current period tax positions
      67       5       2  
Reductions related to lapse of statutes of limitations
      (211 )      (42 )      (26 ) 
Reductions related to settlement with tax authorities
      —         —         (232 ) 
    
 
 
    
 
 
    
 
 
  
Balance, end of the year
    $ 303     $ 384     $ 362  
    
 
 
    
 
 
    
 
 
  
During fiscal 2022 and 2021, we released $211,000 and $50,000, respectively, of accrued interest and penalties relating to a change in various unrecognized tax positions. We have accrued potential interest and penalties of $95,000 included in Income Taxes Payable in the consolidated balance sheet at January 31, 2022.
The Company and its subsidiaries file income tax returns in U.S. federal jurisdictions, various state jurisdictions, and various foreign jurisdictions. The Company was previously under audit by the IRS for the tax years ended January 31, 2015, 2016, and 2017, but on June 6, 2019, we received formal communication regarding the close of the audit with no additional changes made by the IRS. Therefore, the reserves for federal uncertain tax positions relating to the years in question have been released. In fiscal 2020, we released $232,000 relating to the federal tax exposure for the years previously under audit and $74,000 of related interest (net of federal benefit) and penalties.
U.S. income taxes have not been provided on $7.3 million of undistributed earnings of our foreign subsidiaries since it is our intention to permanently reinvest such earnings offshore. If the earnings were distributed in the form of dividends, the Company would not be subject to U.S. tax as a result of the Tax Act but could be subject to foreign income and withholding taxes. Determination of the amount of this unrecognized deferred income tax liability is not practical.
v3.22.1
Nature of Operations, Segment Reporting and Geographical Information
 12 Months Ended
Jan. 31, 2022
Segment Reporting [Abstract]  
Nature of Operations, Segment Reporting and Geographical Information
Note 17—Nature of Operations, Segment Reporting and Geographical Information
Our operations consist of the design, development, manufacture and sale of specialty printers and data acquisition and analysis systems, including both hardware and software and related consumable supplies. We organize and manage our business as a portfolio of products and services designed around a common theme of data acquisition and information output. We have two reporting segments consistent with our revenue product groups: Product Identification (“PI”) and Test & Measurement (“T&M”).
Our PI segment produces an array of high-technology digital color and monochrome label printers and mini presses, labeling software and supplies for a variety of commercial industries worldwide. AstroNova’s T&M segment produces data acquisition systems used worldwide for a variety of recording, monitoring and troubleshooting applications for many industries including aerospace, automotive, defense, rail, energy, industrial and general manufacturing. The T&M segment also includes our line of aerospace flight deck and cabin printers.
Business is conducted in the United States and through foreign branch offices and subsidiaries in Canada, Europe, China, Southeast Asia and Mexico. Manufacturing activities are primarily conducted in the United States. Revenue and service activities outside the United States are conducted through wholly-owned entities and, to a lesser extent, through authorized distributors and agents. Transfer prices are intended to produce gross profit margins as would be associated with an arms-length transaction.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies herein. We evaluate segment performance based on the segment profit before corporate and financial administration expenses.
 
Summarized below are the revenue and segment operating profit (loss) (both in dollars and as a percentage of revenue) for each reporting segment:

($ in thousands)
 
Revenue
 
 
Segment Operating Profit
(Loss)
 
 
Segment Operating Profit (Loss)
as a % of Revenue
 

 
2022
 
 
2021
 
 
2020
 
 
2022
 
 
2021
 
 
2020
 
 
2022
 
 
2021
 
 
2019
 
Product Identification
   $ 90,915     $ 90,268     $ 88,116     $ 10,411     $ 12,885     $ 7,509       11.5 %      14.3 %      8.5 % 
T&M
     26,565       25,765       45,330       3,398       (1,032 )      6,281       12.8 %      (4.0 )%      13.9 % 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 117,480     $ 116,033     $ 133,446       13,809       11,853       13,790       11.8 %      10.2 %      10.3 % 
   
 
 
    
 
 
    
 
 
                            
 
 
    
 
 
    
 
 
  
Corporate Expenses
                             9,553       9,420       11,357                          
                           
 
 
    
 
 
    
 
 
                          
Operating Income
                             4,256       2,433       2,433                          
Other Income (Expense), Net

                             2,778       (254)       (1,063)                          
                           
 
 
    
 
 
    
 
 
                          
Income Before Income Taxes
                             7,034       2,179       1,370                          
Income Tax Provision (Benefit)
                             605       895       (389 )                         
                           
 
 
    
 
 
    
 
 
                          
Net Income
                           $ 6,429     $ 1,284     $ 1,759                          
                           
 
 
    
 
 
    
 
 
                          
No customer accounted for greater than 10% of net revenue in fiscal 2022, 2021 or 2020.
Other information by segment is presented below:
 
(In thousands)   
Assets
  
 
 
January 31,
 
    
2022
     
2021
  
Product Identification
    $ 51,732      $ 50,047  
T&M
      50,374        51,262  
Corporate*
      12,849        14,164  
    
 
 
     
 
 
  
Total
    $ 114,955      $ 115,473  
    
 
 
     
 
 
  
 
*
Corporate assets consist principally of cash, cash equivalents, deferred tax assets and refunds, and certain prepaid corporate assets.
 
(In thousands)   
Depreciation and
Amortization
     
Capital Expenditures
  
    
2022
     
2021
     
2020
     
2022
     
2021
     
2020
  
Product Identification
    $ 1,157      $ 1,835      $ 1,928      $ 847      $ 1,563      $ 2,001  
T&M
      2,837        4,148        4,356        949        1,024        905  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,994      $ 5,983      $ 6,284      $ 1,796      $ 2,587      $ 2,906  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Geographical Data
Presented below is selected financial information by geographic area:
 
 
 
 
 
 
 
Long-Lived Assets*
 
(In thousands)
  
Revenue
 
  
January 31,
 
 
  
2022
 
  
2021
 
  
2020
 
  
2022
 
  
2021
 
United States
    $ 68,185      $ 70,911      $ 83,671      $ 29,131      $ 31,226  
Europe
      31,922        29,029        29,617        1,486        2,274  
Canada
      6,519        5,574        5,719        9        13  
Asia
      5,926        5,105        8,316       
15
        —  
Central and South America
      3,271        3,950        4,145        —        —  
Other
      1,657        1,464        1,978        —        —  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 117,480      $ 116,033      $ 133,446      $ 30,641      $ 33,513  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Long-lived assets exclude goodwill assigned to the T&M segment of $4.5 million at both January 31, 2022 and 2021 and $7.6 million and $8.3 million assigned to the PI segment at January 31, 2022 and 2021, respectively.
v3.22.1
Employee Benefit Plans
 12 Months Ended
Jan. 31, 2022
Postemployment Benefits [Abstract]  
Employee Benefit Plans
Note 18—Employee Benefit Plans
We sponsor a Profit-Sharing Plan (the “Plan”) which provides retirement benefits to all eligible domestic employees. The Plan allows participants to defer a portion of their cash compensation and contribute such deferral to the Plan through payroll deductions. The Company makes matching contributions up to specified levels. The deferrals are made within the limits prescribed by Section 401(k) of the Internal Revenue Code.
All contributions are deposited into trust funds. It is our policy to fund any contributions accrued. Our annual contribution amounts are determined by the Board of Directors. Contributions paid or accrued amounted to $0.5 million in fiscal 2022, $0.4 million in fiscal 2021 and $0.5 million in fiscal 2020.
v3.22.1
Product Warranty Liability
 12 Months Ended
Jan. 31, 2022
Guarantees and Product Warranties [Abstract]  
Product Warranty Liability
Note 19—Product Warranty Liability
We offer a manufacturer’s warranty for the majority of our hardware products. The specific terms and conditions of warranty vary depending upon the products sold and country in which we do business. We estimate the warranty costs based on historical claims experience and record a liability in the amount of such estimates at the time product revenue is recognized. We regularly assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Activity in the product warranty liability, which is included in other accrued expenses in the accompanying consolidated balance sheet, is as follows:
 
    
2022
    
2021
    
2020
  
(In thousands)                   
Balance, beginning of the year

    $ 730     $ 850     $ 832  
Provision for Warranty Expense

      2,174       855       1,733  
Cost of Warranty Repairs

      (2,070 )      (975 )      (1,715 ) 
    
 
 
    
 
 
    
 
 
  
Balance, end of the year

    $ 834     $ 730     $ 850  
 
   
 
 
    
 
 
    
 
 
  
During fiscal 2022, we incurred incremental costs because of a product quality issue with one of our vendors. As the result of discussions with the vendor, which was responsible for the product quality issue, we entered into an agreement whereby the vendor paid us $975,000 as partial reimbursement of the costs we incurred in supporting our customers with respect to the product quality issue. We have recorded this payment to offset cost of goods in our Product Identification segment for the product lines effected by the product quality issue to partially reverse the accounting impact when the original costs of the quality issues were incurred during the year.
v3.22.1
Concentration of Risk
 12 Months Ended
Jan. 31, 2022
Risks and Uncertainties [Abstract]  
Concentration of Risk
Note 20—Concentration of Risk
Credit is generally extended on an uncollateralized basis to almost all customers after review of credit worthiness. Concentration of credit and geographic risk with respect to accounts receivable is limited due to the large number and general dispersion of accounts which constitute our customer base. We periodically perform
on-going
credit evaluations of our customers. We have not historically experienced significant credit losses on collection of our accounts receivable.
During the years ended January 31, 2022, 2021 and 2020, one vendor accounted for 23.3%, 23.2% and 21.2% of purchases, and 15.4%, 28.3% and 28.0% of accounts payable, respectively, as of January 31, 2022, 2021 and 2020.
v3.22.1
Commitments and Contingencies
 12 Months Ended
Jan. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 21
—Commitments and Contingencies
We are subject to contingencies, including legal proceedings and claims arising in the normal course of business that cover a wide range of matters including, among others, contract and employment claims; workers compensation claims; product liability; warranty and modification; and adjustment or replacement of component parts of units sold.
Direct costs associated with the estimated resolution of contingencies are accrued at the earliest date at which it is deemed probable that a liability has been incurred and the amount of such liability can be reasonably estimated. While it is impossible to ascertain the ultimate legal and financial liability with respect to contingent liabilities, including lawsuits, we believe that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated financial position or results of operations. It is possible, however, that future results of operations for any particular future period could be materially affected by changes in our assumptions or strategies related to these contingencies or changes out of our control.
v3.22.1
Fair Value Measurements
 12 Months Ended
Jan. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 2
2
—Fair Value Measurements
Assets and Liabilities Not Recorded at Fair Value on the Consolidated Balance Sheet
Our long-term debt, including the current portion of long-term debt not reflected in the financial statements at fair value, is reflected in the table below:
 
 
  
Fair Value Measurement at
January 31, 2022
 
  
 
 
(In thousands)
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
  
Carrying
Value
 
Long-Term Debt and Related Current Maturities
    $ —      $ —      $ 9,255      $ 9,255      $ 9,250  
     
    
Fair Value Measurement at
January 31, 2021
         
(In thousands)   
Level 1
     
Level 2
     
Level 3
     
Total
     
Carrying
Value
  
Long-Term Debt and Related Current Maturities
    $ —      $ —      $ 12,586      $ 12,586      $ 12,576  
The fair value of our long-term debt, including the current portion, is estimated by discounting the future cash flows using current interest rates at which similar borrowings with the same maturities would be made to borrowers with similar credit ratings and is classified as Level 3.
v3.22.1
Schedule II - Valuation and Qualifying Accounts and Reserves
 12 Months Ended
Jan. 31, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts and Reserves
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
 
Description
   
Balance at
Beginning
of Year
     
Provision/
(Benefit)
Charged to
Operations
     
Deductions(2)
    
Balance
at End
of Year
  
Allowance for Doubtful Accounts
 
(1):
                                   
(In thousands)                           
Year Ended January 31,
                                   
2022
    $ 1,054      $ 50      $ (278 )   $ 826  
2021
    $ 856      $ 194      $ 4     $ 1,054  
2020
    $ 521      $ 546      $ (211 )    $ 856  
 
(1)
The allowance for doubtful accounts has been netted against accounts receivable in the balance sheets as of the respective balance sheet dates.
(2)
Uncollectible accounts written off, net of recoveries.
v3.22.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation:
The accompanying financial statements and accompanying notes have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and are presented in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Our fiscal year end is January 31. Unless otherwise stated, all years and dates refer to our fiscal year.
Principles of Consolidation
Principles of Consolidation:
The consolidated financial statements include the accounts of AstroNova, Inc. and its subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation.
Reclassification
Reclassification:
Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation.
Use of Estimates
Use of Estimates:
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect these financial statements and accompanying notes using information that is reasonably available to us at this time. Some of the more significant estimates relate to revenue recognition; the allowances for doubtful accounts; inventory valuation; income taxes; estimated useful life and valuation of long-lived assets and goodwill; share-based compensation; and warranty reserves. Management’s estimates are based on the facts and circumstances available at the time estimates are made, historical experience, risk of loss, general economic conditions and trends, and management’s assessments of the probable future outcome of these matters, including our expectations at the time regarding the duration, scope and severity of the
COVID-19
pandemic. Consequently, actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents:
Highly liquid investments with an original maturity of
 
90 days or less
are considered to be cash equivalents. At January 31, 2022 and 2021,
$3.7 million and $4.6 million, respectively, was held in foreign bank accounts.
Inventories
Inventories:
Inventories are stated at the lower of standard and average cost or net realizable value and include material, labor and manufacturing overhead.
Property, Plant and Equipment
Property, Plant and Equipment:
Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets (land improvements—10 to 20 years; buildings and leasehold improvements—10 to 45 years; machinery and equipment—3 to 10 years and computer equipment and software—3 to 10 years).
Revenue Recognition
Revenue Recognition:
We recognize revenue in accordance with Accounting Standards Update (“ASU”)
2014-
09
, “Revenue
from Contracts with Customers (“Topic 606”).” The core principle of Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Topic 606 defines a five step process to recognize revenue and requires judgment and estimates within the revenue recognition process, including identifying contracts with customers, identifying performance obligations in the contract, determining and estimating the amount of any variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation and recognizing revenue when the entity satisfies each performance obligation.
The vast majority of our revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration we expect to receive in exchange for such products, which is generally at the contractually stated prices, and is recognized when we satisfy a performance obligation by transferring control of a product to a customer. The transfer of control generally occurs at one point in time, upon shipment, when title and risk of loss pass to the customer. Returns and customer credits are infrequent and are recorded as a reduction to revenue. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue.

Many of the contracts entered into with customers are commonly comprised of a combination of equipment, supplies, installation and/or training services. We determine performance obligations by assessing whether the products or services are distinct from other elements of the contract. In order to be distinct, the product must perform either on its own or with readily available resources and must be separate within the context of the contract.
Most of our hardware products contain embedded operating systems and data management software which is included in the purchase price of the equipment. The software is deemed incidental to the systems as a whole, as it is not sold or marketed separately, and its production costs are minor compared to those of the hardware system. Hardware and software elements are typically delivered at the same time and are accounted for as a single performance obligation for which revenue is recognized at the point in time when ownership is transferred to the customer.
Installation and training services vary based on certain factors such as the complexity of the equipment, staffing availability in a geographic location and customer preferences, and can range from a few days to a few months. The delivery of installation and training services are not assessed to determine whether they are separate performance obligations, as the amounts are not material to the contract.
Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by Topic 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer.
We may perform service at the request of the customer, generally for the repair and maintenance of products previously sold. These services are short in duration and total less than 11% and 9% of revenue for the years ended January 31, 2022 and 2021, respectively. Revenue is recognized as services are rendered and accepted by the customer. We also provide service agreements on certain of our Product Identification equipment. Service agreements are purchased separately from the equipment and provide for the right to obtain service and maintenance on the equipment for a period of typically one to two years. Accordingly, revenue on these agreements is recognized over the term of the agreements. The portion of service agreement contracts that are uncompleted at the end of any reporting period are included in deferred revenue.
We generally provide warranties for our products. The standard warranty period is typically
12
months for most hardware products except for airborne printers, which typically have warranties that extend for
3-5
years, consistent with industry practice. Such assurance-type warranties are not deemed to be separate performance obligations from the hardware product and costs associated with providing the warranties are accrued in accordance with ASC 450, “Contingencies,” as we have the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability. Our estimate of costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that our experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liability are recorded at that time, with an offsetting adjustment to cost of revenue. On occasion, customers request a warranty period longer than our standard warranty. In those instances, in which extended warranty services are separately quoted to the customer, an additional performance obligation is created, and the associated revenue is deferred and recognized as service revenue ratably over the term of the extended warranty period. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue.
We recognize an asset for the incremental direct costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. Costs related to obtaining sales contracts for our aerospace printer products have been capitalized and are being amortized based on the forecasted number of units sold over the estimated benefit term. We apply the practical expedient to expense costs incurred for costs to obtain a contract when the amortization period would have been less than a year. These costs include sales commissions paid to the internal direct sales team as well as to third-party representatives and distributors. Contractual
agreements with each of these parties outline commission structures and rates to be paid. Generally speaking, the contracts are all individual procurement decisions by the customers and do not include renewal provisions and as such the majority of the contracts have an economic life of significantly less than a year.
Accounts Receivables and Allowance for Doubtful Accounts
Accounts Receivables and Allowance for Doubtful Accounts:
Standard payment terms are typically
30
 days after shipment but vary by type and geographic location of our customer. Credit is extended based upon an evaluation of the customer’s financial condition. In circumstances where we are aware of a customer’s inability to meet its financial obligations, an allowance is established. The remainder of the allowance established is based on a variety of factors, including the age of amounts outstanding relative to their contractual due date, historical
write-off
experience and current market assessments. Accounts receivable are stated at their estimated net realizable value.
Research and Development Costs
Research and Development Costs:
We charge costs to expense in the period incurred, and these expenses are presented in the consolidated statement of income. The following costs are included in research and development expense: salaries and benefits, external engineering service costs, engineering related information costs and supplies.
Foreign Currency Translation
Foreign Currency Translation:
The financial statements of foreign subsidiaries and branches are measured using the local currency as the functional currency. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at
year-end
exchange rates with the translation adjustment recorded as a component of accumulated comprehensive income (loss) in shareholders’ equity. Revenues and expenses are translated at the average monthly exchange rates in effect during the related period. We do not provide for U.S. income taxes on foreign currency translation adjustments associated with our subsidiaries in Germany, Denmark and China since their undistributed earnings are considered to be permanently invested. Included in our consolidated statements of income was a net transactional foreign exchange loss of $0.3 
million in fiscal 2022, a net transaction foreign exchange gain of
$0.6 
million in fiscal 2021, and a net transaction foreign exchange loss of
$0.4 
million in fiscal 2020.
Advertising
Advertising:
We expense advertising costs as incurred. Advertising costs including advertising production, trade shows and other activities are designed to enhance demand for our products and amounted to approximately $1.3 million; $0.9 million and $1.8 million in fiscal 2022, 2021 and 2020, respectively.
Long-Lived Assets
Long-Lived Assets:
Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, as determined by the discounting of future cash flows. There were no impairment charges for our long-lived assets in fiscal years 2022, 2021 or 2020.
Intangible Assets
Intangible Assets:
Intangible assets include the value of customer and distributor relationships, existing technology and
non-competition
agreements acquired in connection with business and asset acquisitions and are stated at cost (fair value at acquisition) less accumulated amortization. These intangible assets have a definite life and are amortized over the assets’ useful lives using a systematic and rational basis which is representative of the assets’ use. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. If necessary, an impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. There were no impairment charges for our intangible assets in fiscal years 2022, 2021 or 2020.
Goodwill
Goodwill:
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination. Management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances, such as declines in revenue, earnings or cash
flows, or material adverse changes in the business climate indicate that the carrying value of an asset might be impaired. Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment, or a business unit one level below an operating segment if discrete financial information for that business is prepared and regularly reviewed by segment management. However, components within an operating segment are aggregated as a single reporting unit if they have similar economic characteristics. We determined that each of our operating segments (Product Identification and T&M) represents a reporting unit for purposes of goodwill impairment testing.
The accounting guidance related to goodwill impairment testing allows for the performance of an optional qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Factors that management considers in this qualitative assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management and strategy and changes in the composition or carrying amount of net assets. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a quantitative assessment is required for the reporting unit. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test. The quantitative assessment compares the fair value of the reporting unit with its carrying value. If the quantitative assessment is performed, we estimate the fair value of our reporting units using a blended income and market approach. The income approach is based on a discounted cash flow model and provides a fair value estimate based upon the reporting unit’s expected long-term operating cash flow performance. The market approach, compares the reporting unit to publicly traded companies and transactions involving similar business, and requires the use of many assumptions and estimates including future revenue, expenses, capital expenditures, and working capital, as well as discount factors and income tax rates. If the fair value of the reporting unit exceeds the carrying value of the net assets including goodwill assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit’s net assets including goodwill exceeds the fair value of the reporting unit, then we record an impairment charge based on that difference. We performed a qualitative assessment for our fiscal 2022 analysis of goodwill. Based on this assessment, management does not believe that it is more likely than not that the carrying values of the reporting units exceed their fair values. Accordingly, no quantitative assessment was performed. There were no impairment charges for our goodwill in fiscal years 2022, 2021 or 2020.
Leases
Leases:
We account for our leases in accordance with Accounting Standard Codification (“ASC”) 842, Leases. ASC
842
requires a lessee to recognize assets and liabilities on the balance sheet for all leases, with the result being the recognition of a right of use (ROU) asset and a lease liability. The lease liability is equal to the present value of the minimum lease payments for the term of the lease, including any optional renewal periods determined to be reasonably certain to be exercised, using a discount rate determined at lease commencement. This discount rate is the rate implicit in the lease, if known; otherwise, the incremental borrowing rate for the expected lease term is used. Our incremental borrowing rate approximates the rate we would have to pay to borrow on a collateralized basis over a similar term at lease inception. The value of the ROU asset is equal to the initial measurement of the lease liability plus any lease payments made to the lessor at or before the commencement date and any unamortized initial direct costs incurred by the lessee, less any unamortized lease incentives received. Several of our lease contracts include options to extend the lease term and we include the renewal options for these leases in the determination of the ROU asset and lease liability when the likelihood of renewal is determined to be reasonably certain.
We enter into lease contracts for certain of our facilities at various locations worldwide. At inception of a contract, we determine whether the contract is or contains a lease. If we have a right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the asset, then the contract contains a lease.

There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. We have made an accounting policy election to apply the short-term exception, which does not require the capitalization of leases with terms of 12 months or less. All of our leases are classified as operating leases. Operating lease expense is recognized on a straight-line basis over the lease term and included in general
and administrative expense on the consolidated statement of income. ROU assets are classified as such on the consolidated balance sheet, short-term lease liabilities are classified in accrued expenses, and long-term lease liabilities are classified as such in the consolidated balance sheet. In the statement of cash flow, payments for operating leases are classified as operating activities.
In addition, several of our lease agreements include
non-lease
components for items such as common area maintenance and utilities which are accounted for separately from the lease component.
Income Taxes
Income Taxes:
We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and tax basis of the assets and liabilities and are measured using statutory tax rates that will be in effect when the differences are expected to reverse. Our deferred taxes are presented as
non-current
in the accompanying consolidated balance sheet. An allowance against deferred tax assets is recognized when it is
more-likely-than-not
that some portion or all of the deferred tax assets will not be realized. At January 31, 2022 and 2021, a valuation allowance was provided for deferred tax assets attributable to certain domestic R&D and foreign tax credit carryforwards which are expected to expire unused.
We account for uncertain tax positions in accordance with the guidance provided in ASC 740, “Accounting for Income Taxes.” This guidance describes a recognition threshold and measurement attribute for the financial statement disclosure of tax positions taken or expected to be taken in a tax return and requires recognition of tax benefits that satisfy a
more-likely-than-not
threshold. ASC 740 also provides guidance on
de-recognition,
classification, interest and penalties, accounting in interim periods and disclosure.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The legislation had sweeping effects including various types of economic relief for impacted businesses and industries. One such relief provision was the Paycheck Protection Program, which provided short-term cash flow assistance to finance employee payroll and qualified expenses. On May 6, 2020, we entered into a loan agreement with, and executed a promissory note in favor of Greenwood Credit Union (“Greenwood”) pursuant to which we borrowed
$4.4 
million (the “PPP Loan”). On December 27, 2020 the Consolidated Appropriations Act, 2021, H.R. 133 was signed into law. The legislation permits the deductibility of expenses to the extent that the payment of such expenses results (or is expected to result) in the forgiveness of a loan (covered loan) guaranteed under the Paycheck Protection Program. We have fully utilized the PPP Loan proceeds for qualifying expenses and applied for forgiveness of the PPP Loan. Consistent with the legislation, we deducted the full
$4.4 
million of qualified expenses on our 2020 federal tax return. On June 15, 2021, Greenwood notified us that the United States Small Business Administration (the “SBA”) approved our application for forgiveness of the entire
$4.4 million principal balance of our PPP Loan and all accrued interest thereon. As a result, in the second quarter of fiscal 2022, we recorded a
 
$4.5 
million gain on extinguishment of debt. The PPP loan forgiveness is excluded from taxable income under Section 1106(i) of the CARES Act.
Net Income Per Common Share
Net Income Per Common Share:
Basic net income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is based on the basic weighted average number of shares and potential common equivalent shares for stock options, restricted stock awards and restricted stock units outstanding during the period using the treasury stock method. In fiscal years 2022, 2021 and 2020, there were 345,085; 642,623
 
and 202,187, respectively, of common equivalent shares that were not included in the computation of diluted net income per common share because their inclusion would be anti-dilutive.
Fair Value Measurement
Fair Value Measurement:
We measure our assets and liabilities at fair value on a recurring and non-recurring basis in accordance with the guidance provided in ASC 820, “Fair Value Measurement and Disclosures,” which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management’s belief about
the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.
The fair value hierarchy is summarized as follows:
 
  •  
Level 1—Quoted prices in active markets for identical assets or liabilities;
 
  •  
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
 
  •  
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Cash and cash equivalents, accounts receivable, accounts payable, accrued compensation, other accrued expenses and income tax payable are reflected in the consolidated balance sheet at carrying value, which approximates fair value due to the short-term nature of these instruments.
Self-Insurance
Self-Insurance:
We are self-insured for U.S. medical and dental benefits for qualifying employees and maintain stop-loss coverage from a third party which limits our exposure to large claims. We record a liability associated with these benefits that includes an estimate of both claims filed and losses incurred but not yet reported based on historical claims experience. In estimating this accrual, we utilize an independent third-party broker to estimate a range of expected losses, which are based on analyses of historical data. Assumptions are closely monitored and adjusted when warranted by changing circumstances. Our liability for self-insured claims is included within accrued compensation in our consolidated balance sheets and was $0.2 million a
t
January 31, 2022 and 2021.
Share-Based Compensation
Share-Based Compensation:
Share-based compensation expense is measured based on the estimated fair value of the share-based award when granted and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). We have estimated the fair value of each option on the date of grant using the Black-Scholes option-pricing model. Our estimate of share-based compensation requires several complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options), the risk-free interest rate and our dividend yield. The stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average expected life of our options. Management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. In determining the expected life of the option grants, we have observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed the expected risk tolerance of different option groups. The risk-free interest rate is based on the actual U.S. Treasury zero coupon rates for bonds matching the expected term of the option as of the option grant date. The dividend assumption is based upon the prior year’s average dividend yield. No compensation expense is recognized for options that are forfeited for which the employee does not render the requisite service. Our accounting for share-based compensation for restricted stock awards (RSA) and restricted stock units (RSU) is also based on the fair value method. The fair value of the RSUs and RSAs is based on the closing market price of our common stock on the grant date. Reductions in compensation expense associated with forfeited awards are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience.
Cash flow from tax deductions in excess of the compensation cost
recognized
for those options (excess tax benefits) is classified with other income tax cash flows as an operating activity.
Share-based compensation becomes deductible for determining income taxes when the related award vests, is exercised, or is forfeited depending on the type of share-based award and subject to relevant tax law.
Derivative Financial Instruments
Derivative Financial Instruments:
We occasionally use derivative instruments as part of our overall strategy to manage exposure to market risks primarily associated with fluctuations in foreign currency exchange rates
 and
interest rates. Derivative instruments are recognized as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the statement of income during the current period. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) (OCI) and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the hedged transaction affects earnings (e.g., in “Interest Expense” when the hedged transactions are interest cash flows associated with floating-rate debt, or “Other, Net” for portions reclassified relating to the remeasurement of the debt). The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, are recognized in the statement of income during the current period.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recently Adopted:
Income Taxes
In December 2019, the FASB issued ASU
2019-12,
“Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU
2019-12
is effective for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements and accompanying disclosures.
No other new accounting pronouncements, issued or effective during fiscal 2022, have had or are expected to have a material impact on our consolidated financial statements.
v3.22.1
Revenue Recognition (Tables)
 12 Months Ended
Jan. 31, 2022
Revenue from Contract with Customer [Abstract]  
Summary of Revenues Disaggregated by Primary Geographic Markets and Major Product Type
Primary geographical markets:
 
(In thousands)
  
2022
 
  
2021
 
  
2020
 
United States
    $ 68,185      $ 70,911      $ 83,671  
Europe
      31,922        29,029        29,617  
Canada
      6,519        5,574        5,719  
Asia
      5,926        5,105        8,316  
Central and South America
      3,271        3,950        4,145  
Other
      1,657        1,464        1,978  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 117,480      $ 116,033      $ 133,446  
    
 
 
     
 
 
     
 
 
  
Major product types:
 
(In thousands)
  
2022
 
  
2021
 
  
2020
 
Hardware
    $ 31,492      $ 34,111      $ 48,959  
Supplies
      73,244        71,772        71,838  
Service and Other
      12,744        10,150        12,649  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 117,480      $ 116,033      $ 133,446  
    
 
 
     
 
 
     
 
 
  
v3.22.1
Intangible Assets (Tables)
 12 Months Ended
Jan. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Fair Value of Acquired Identifiable Intangible Assets and Related Estimated Useful Lives
Intangible assets are as follows:
 
 
 
January 31, 2022
 
 
January 31, 2021
 
(In thousands)
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
Miltope:
 
 
 
 
 
 
 
 
Customer Contract Relationships
   $ 3,100     $ (2,515 )    $ —       $ 585     $ 3,100     $ (2,284 )    $ —       $ 816  
RITEC:
                                                                
Customer Contract Relationships
     2,830       (1,557 )      —         1,273       2,830       (1,423 )      —         1,407  
TrojanLabel:
                                                                
Existing Technology
     2,327       (1,767 )      127       687       2,327       (1,405 )      196       1,118  
Distributor Relations
     937       (498 )      46       485       937       (396 )      89       630  
Honeywell:
                                                                
Customer Contract Relationships
     27,243       (11,073 )      —         16,170       27,243       (9,712 )      —         17,531  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Intangible Assets, net
   $ 36,437     $ (17,410 )    $     173     $ 19,200     $ 36,437     $ (15,220 )    $     285     $ 21,502  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Summary of Estimated Amortization Expense
Estimated amortization expense for the next five fiscal years is as follows:
 
(In thousands)   
2023
     
2024
     
2025
     
2026
     
2027
  
Estimated amortization expense
    $ 1,632      $ 1,693      $ 1,008      $ 1,008      $ 1,008  
v3.22.1
Inventories (Tables)
 12 Months Ended
Jan. 31, 2022
Inventory Disclosure [Abstract]  
Components of Inventories
The components of inventories are as follows:
 
    
January 31,
  
    
2022
     
2021
  
(In thousands)              
Materials and Supplies
    $ 22,709      $ 20,265  
Work-in-Progress
      1,489        2,076  
Finished Goods
      19,718        16,371  
    
 
 
     
 
 
  
       43,916        38,712  
Inventory Reserve
      (9,307 )       (8,652 ) 
    
 
 
     
 
 
  
     $ 34,609      $ 30,060  
    
 
 
     
 
 
  
v3.22.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Jan. 31, 2022
Property, Plant and Equipment [Abstract]  
Summary of Property, Plant and Equipment
Property, plant and equipment consist of the following:
 
    
January 31,
  
    
2022
     
2021
  
(In thousands)              
Land and Land Improvements
    $ 1,004      $ 1,004  
Buildings and Leasehold Improvements
      12,666        12,642  
Machinery and Equipment
      23,238        23,346  
Computer Equipment and Software
      13,913        13,847  
    
 
 
     
 
 
  
Gross Property, Plant and Equipment
      50,821        50,839  
Accumulated Depreciation
      (39,380)        (38,828)  
    
 
 
     
 
 
  
Net Property Plant and Equipment
    $ 11,441      $ 12,011  
    
 
 
     
 
 
  
v3.22.1
Accrued Expenses (Tables)
 12 Months Ended
Jan. 31, 2022
Payables and Accruals [Abstract]  
Summary of Accrued Expenses
Accrued expenses consist of the following:
 
    
January 31,
  
    
2022
     
2021
  
(In thousands)              
Warranty
    $ 834      $ 730  
Professional Fees
      411        546  
Freight
      347        57  
Lease Liability
      327        372  
Accrued Property & Sales Tax
      316        443  
Stockholder Relation Fees
      102        91  
Dealer Commissions
      139        57  
Other Accrued Expenses
      1,637        1,578  
    
 
 
     
 
 
  
     $ 4,113      $ 3,874  
    
 
 
     
 
 
  
v3.22.1
Credit Agreement and Long- Term Debt (Tables)
 12 Months Ended
Jan. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets
Long-term debt in the accompanying condensed consolidated balance sheets under the Amended Credit Agreement is as follows:
 
    
January 31,
  
(In thousands)   
2022
     
2021
  
USD Term Loan (2.35% as of January 31, 2022); maturity date of September 30, 2025
    $ 9,250      $ —    
USD Term Loan (4.65% as of January 31, 2021)
      —          12,576  
    
 
 
     
 
 
  
       9,250        12,576  
Debt Issuance Costs, net of accumulated amortization
      (96 )       (141 ) 
Current Portion of Term Loan
      (1,000 )       (5,326 ) 
    
 
 
     
 
 
  
Long-Term Debt
    $ 8,154      $ 7,109  
    
 
 
     
 
 
  
Schedule of Required Principal Payments Remaining on Long Term Debt Outstanding
The schedule of required principal payments remaining under the Amended Credit Agreement on long-term debt outstanding as of January 31, 2022 is as follows:
 
(In thousands)
  
 
 
Fiscal 2023
    $ 1,000  
Fiscal 2024
      1,000  
Fiscal 2025
      1,250  
Fiscal 2026
      6,000  
    
 
 
  
     $9,250  
    
 
 
  
v3.22.1
Derivative Financial Instruments and Risk Management (Tables)
 12 Months Ended
Jan. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Impact of the Derivative Instruments in the Condensed Consolidated Financial Statements
The following tables present the impact of the derivative instruments in our consolidated financial statements for the years ended January 31, 2022 and 2021:
 
    
Years Ended
  
Cash Flow Hedge
(In thousands)
   
Amount of Gain(Loss)
Recognized in OCI
on
Derivative
    
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
     
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
  
  
January 31,
2022
     
January 31,
2021
     
January 31,
2022
    
January 31,
2021
  
Swap contracts
    $ —      $ (360 )      Other Income      $ (79 )    $ (288 ) 
    
 
 
     
 
 
             
 
 
    
 
 
  
v3.22.1
Leases (Tables)
 12 Months Ended
Jan. 31, 2022
Leases [Abstract]  
Schedule Of Balance Sheet And Other Information Related To Operating Leases
Balance sheet and other information related to our leases is as follows:
 
Operating Leases
(In thousands)
   
Balance Sheet Classification
   
January 31,
2022
     
January 31,
2021
  
Lease Assets
    Right of Use Assets    $ 1,094      $ 1,389  
Lease Liabilities—Current
    Other Accrued Expenses      327        372  
Lease Liabilities—Long Term
    Lease Liabilities    $ 808      $ 1,065  
Schedule Lease Cost Information
Lease cost information is as follows:
 
Operating Leases
(In thousands)
  
Statement of Income Classification
 
  
2022
 
  
2021
 
Operating Lease Costs
        General and Administrative Expense        $ 510      $ 485  
Schedule of Maturities Of Lease Liabilities
At January 31, 2022, maturities of operating lease liabilities are as follows:
 
(In thousands)
       
2023
    $ 327  
2024
      308  
2025
      203  
2026
      159  
2027
      153  
Thereafter
      91  
    
 
 
  
Total Lease Payments
      1,241  
Less: Imputed Interest
      (106 ) 
    
 
 
  
Total Lease Liabilities
    $ 1,135  
    
 
 
  
Supplemental Cash Flow Information Related To Leases
Supplemental cash flow information related to leases is as follows:

 
(In thousands)
  
 
 2022 
 
  
 
2021
 
Cash paid for operating lease liabilities
    $ 372      $ 429  
v3.22.1
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Jan. 31, 2022
Equity [Abstract]  
Changes in Balance of Accumulated Other Comprehensive Loss
The changes in the balance of accumulated other comprehensive income (loss) by component are as follows:
 
(In thousands)
  
Foreign Currency
Translation
Adjustments
 
 
Net
Unrealized
Gain (Losses)
on Cash Flow
Hedges
 
 
Total
 
Balance at January 31, 2019
   
$
 (852
) 
  
$
 34
 
  
$
 (818
) 
Other Comprehensive Income (Loss) before reclassification
  
   (133
) 
     122
 
  
 
 (11
) 
Amounts reclassified from AOCI to Earnings
  
  
—  
 
     (264
) 
  
 
 (264
) 
    
 
 
    
 
 
    
 
 
  
Other Comprehensive Loss
  
 
 (133
) 
 
 
 (142
) 
 
 
 (275
) 
    
 
 
    
 
 
    
 
 
  
Balance at January 31, 2020
  
$
 (985
) 
 
$
 (108
) 
 
$
 (1,093
) 
Other Comprehensive Income (Loss) before reclassification
  
 
 710
 
 
 
 (239
) 
 
 
 471
 
Amounts Reclassified from AOCI to Earnings
  
 
—  
 
 
 
 193
 
 
 
 193
 
Cross-Currency Interest Rate Swap Termination
  
 
—  
 
 
 
 45
 
 
 
 45
 
    
 
 
    
 
 
    
 
 
  
Other Comprehensive Income (Loss)
  
 
 710
 
 
 
 (1
) 
 
 
 709
 
Balance at January 31, 202
1
 
$
(275
)
 
$
(109
)
 
$
(384
)
 
Other Comprehensive Loss before reclassificatio
n
 
 
(1,426
)
 
 
—
 
 
 
 (1,426
)
 
Amounts Reclassified from AOCI to Earning
s
 
 
— 
 
 
 
62
 
 
 
62
 
Other Comprehensive Income (Loss
)
 
 
(1,426
)
 
 
 
62
 
 
 
 (1,364
)
Balance at January 31, 202
2
 
$
(1,701
)
 
$
(47
)
 
$
(1,748
)
v3.22.1
Share-Based Compensation (Tables)
 12 Months Ended
Jan. 31, 2022
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation Expense
Share-Based Compensation:
Share-based compensation expense has been recognized as follows:
 
(In thousands)                     
Stock Options
    $ 210      $ 517      $ 616  
Restricted Stock Awards and Restricted Stock Units
      1,266        1,285        1,136  
Employee Stock Purchase Plan
      17        17        23  
    
 
 
     
 
 
     
 
 
  
Total
    $ 1,493      $ 1,819      $ 1,775  
    
 
 
     
 
 
     
 
 
  
Aggregated Information Regarding Stock Options Granted
Aggregated information regarding stock options granted under the plans is summarized below:
 
 
  
Number
of Shares
 
 
Weighted-
Average
Exercise
Price Per
Share
 
Options Outstanding, January 31, 2019
      771,145     $ 14.30  
Options Granted
      —         —    
Options Exercised
      (57,175 )      11.60  
Options Forfeited
      (34,526 )      15.73  
Options Cancelled
      (400 )      6.22  
    
 
 
    
 
 
  
Options Outstanding, January 31, 2020
      679,044     $ 14.46  
Options Granted
      —         —    
Options Exercised
      (1,200 )      7.60  
Options Forfeited
      (54,361 )      12.89  
Options Cancelled
      (1,400 )      7.36  
    
 
 
    
 
 
  
Options Outstanding, January 31, 2021
      622,083     $ 14.63  
Options Granted
      —         —    
Options Exercised
      (6,425 )      9.34  
Options Forfeited
      (17,615 )      15.09  
Options Cancelled
      —         —    
    
 
 
    
 
 
  
Options Outstanding, January 31, 2022
      598,043     $ 14.67  
    
 
 
    
 
 
  
Summary of Options Outstanding
Set forth below is a summary of options outstanding at January 31, 2022:
 
Outstanding
 
  
Exercisable
 
Range of
Exercise prices
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted-
Average
Remaining
Contractual Life
 
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted
Average
Remaining
Contractual
Life
 
$5.00-10.00
      35,844      $ 7.97        0.5        35,844      $ 7.97        0.5  
$10.01-15.00
      345,749        13.62        3.9        345,749        13.62        3.9  
$15.01-20.00
      216,450        17.48            5.8        209,900        17.43        5.8  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
       598,043      $ 14.67            4.4        591,493      $ 14.63        4.3  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Aggregated Information Regarding RSUs and RSAs Granted
Aggregated information regarding RSUs and RSAs granted under the Plan is summarized below:
 
 
  
RSAs & RSUs
 
 
Weighted-Average
Grant Date Fair Value
 
Outstanding at January 31, 2019
      133,667     $ 16.90  
Granted
      119,522       19.86  
Vested
      (59,930 )      14.50  
Forfeited
      (58,625 )      19.00  
    
 
 
    
 
 
  
Outstanding at January 31, 2020
      134,634     $ 16.79  
Granted
      245,131       7.61  
Vested
      (64,997 )      17.28  
Forfeited
      (117,355 )      8.83  
    
 
 
    
 
 
  
Outstanding at January 31, 2021
      197,413     $ 9.96  
Granted
      151,406       14.51  
Vested
      (126,939 )      10.43  
Forfeited
      (22,538 )      14.26  
    
 
 
    
 
 
  
Outstanding at January 31, 2022
      199,342     $ 12.63  
    
 
 
    
 
 
  
Summarized Plan Activity Summarized plan activity is as follows:
    
    2022    
     
    2021    
     
    2020    
  
Shares Reserved, Beginning
      10,374        24,974        33,853  
Shares Purchased
      (8,092 )       (14,600 )       (8,879 ) 
    
 
 
     
 
 
     
 
 
  
Shares Reserved, Ending
      2,282        10,374        24,974  
    
 
 
     
 
 
     
 
 
  
v3.22.1
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Income before Income Taxes
The components of income (loss) before income taxes are as follows:
 
    
2022
     
2021
    
2020
  
(In thousands)                    
Domestic
    $ 5,046      $ (1,193 )    $ 1,930  
Foreign
      1,988        3,372       (560 ) 
    
 
 
     
 
 
    
 
 
  
     $ 7,034      $ 2,179     $ 1,370  
    
 
 
     
 
 
    
 
 
  
Components of Provision for Income Taxes
The components of the provision/(benefit) for income taxes are as follows:
 
    
2022
    
2021
    
2020
  
(In thousands)                   
Current:
                         
Federal
    $ (183 )    $ 1,272     $ 660  
State
      76       224       221  
Foreign
      501       420       368  
    
 
 
    
 
 
    
 
 
  
       394       1,916       1,249  
    
 
 
    
 
 
    
 
 
  
Deferred:
                         
Federal
    $ 180     $ (910 )    $ (1,364 ) 
State
      177       (189 )      (282 ) 
Foreign
      (146 )      78       8  
    
 
 
    
 
 
    
 
 
  
       211       (1,021 )      (1,638 ) 
    
 
 
    
 
 
    
 
 
  
     $ 605     $ 895     $ (389 ) 
    
 
 
    
 
 
    
 
 
  
Reconciliation of income tax provision/(benefit) With The Amount Computed By Applying The Statutory Federal Income Tax Rate To The Income Before Income Tax Provision/(benefit)
Total income tax provision/(benefit) differs from the expected tax provision/(benefit) as a result of the following:
 
 
  
2022
 
 
2021
 
 
2020
 
(In thousands)
  
 
 
 
 
 
 
 
 
Income Tax Provision at Statutory Rate
    $ 1,477     $ 458     $ 288  
Return to Provision Adjustment
      368       (2 )      (207 ) 
State Taxes, Net of Federal Tax Effect
      143       28       (48 ) 
Denmark Statutory Audit
      —         341       —    
Foreign Rate Differential
      61       197       315  
Change in Valuation Allowance
      57       (81 )      256  
Meals and Entertainment
      9       11       31  
Canada Withholding Taxes
      —         62       —    
Global Intangible Low Taxed Income
      —         14       107  
Foreign Tax Credits
      —         —         (344 ) 
Foreign Derived Intangible Income
      (55 )      (150 )      (107 ) 
Share Based Compensation
      (95 )      171       (145 ) 
R&D Credits
      (180 )      (157 )      (209 ) 
Change in Reserves Related to ASC 740 Liability
      (245 )      (10 )      (352 ) 
PPP Loan Forgiveness
      (937 )      —         —    
Other
      2       13       26  
    
 
 
    
 
 
    
 
 
  
     $ 605     $ 895     $ (389 ) 
    
 
 
    
 
 
    
 
 
  
Tax Effects of Temporary Differences that gave Rise to Significant Portions of Deferred Tax Assets and Liabilities The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities are as follows:
    
January 31,
  
    
2022
    
2021
  
(In thousands)             
Deferred Tax Assets:
                 
Inventory
    $ 2,159     $ 2,700  
Honeywell Royalty Liability
      2,655       2,590  
State R&D Credits
      1,925       1,546  
Share-Based Compensation
      593       600  
Bad Debt
      213       245  
Warranty Reserve
      198       176  
Compensation Accrual
      322       159  
Net Operating Loss
      152       154  
ASU 842 Adjustment
 –
Lease Liability
      93       125  
Unrecognized State Tax Benefits
      64       101  
Foreign Tax Credit
      154       83  
Deferred Service Contract Revenue
      61       68  
Other
      224       308  
    
 
 
    
 
 
  
       8,813       8,855  
Deferred Tax Liabilities:
                 
Accumulated Tax Depreciation in Excess of Book Depreciation
      455       752  
Intangibles
      767       399  
ASU 842 Adjustment – Lease Liability
      90       119  
Other
      318       307  
    
 
 
    
 
 
  
       1,630       1,577  
    
 
 
    
 
 
  
Subtotal
      7,183       7,278  
Valuation Allowance
      (1,778 )      (1,721 ) 
    
 
 
    
 
 
  
Net Deferred Tax Assets
    $ 5,405     $ 5,557  
 
  
 
 
 
 
 
 
 
 
 
 
 
Deferred taxes are reflected in the consolidated balance sheet as follows:
 
 
 
    
January 31,
  
    
2022
    
2021
  
Deferred Tax Assets
  
 
5,651
 
 
 
5,941
 
Deferred Tax Liabilities
  
 
(246
) 
 
 
(384
) 
 
  
 
 
 
 
 
 
 
Total Net Deferred Tax Assets
  
$
5,405
 
 
$
5,557
 
 
  
 
 
 
 
 
 
 
Changes in Balance of Unrecognized Tax Benefits, Excluding Interest and Penalties
    
2022
    
2021
    
2020
  
(In thousands)                   
Balance
, beginning of the year
    $ 384     $ 362     $ 618  
Increases in prior period tax positions
      63       59       —    
Increases in current period tax positions
      67       5       2  
Reductions related to lapse of statutes of limitations
      (211 )      (42 )      (26 ) 
Reductions related to settlement with tax authorities
      —         —         (232 ) 
    
 
 
    
 
 
    
 
 
  
Balance, end of the year
    $ 303     $ 384     $ 362  
    
 
 
    
 
 
    
 
 
  
v3.22.1
Nature of Operations, Segment Reporting and Geographical Information (Tables)
 12 Months Ended
Jan. 31, 2022
Segment Reporting [Abstract]  
Net Sales and Segment Operating Profit (loss) for Each Reporting Segment
Summarized below are the revenue and segment operating profit (loss) (both in dollars and as a percentage of revenue) for each reporting segment:

($ in thousands)
 
Revenue
 
 
Segment Operating Profit
(Loss)
 
 
Segment Operating Profit (Loss)
as a % of Revenue
 

 
2022
 
 
2021
 
 
2020
 
 
2022
 
 
2021
 
 
2020
 
 
2022
 
 
2021
 
 
2019
 
Product Identification
   $ 90,915     $ 90,268     $ 88,116     $ 10,411     $ 12,885     $ 7,509       11.5 %      14.3 %      8.5 % 
T&M
     26,565       25,765       45,330       3,398       (1,032 )      6,281       12.8 %      (4.0 )%      13.9 % 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 117,480     $ 116,033     $ 133,446       13,809       11,853       13,790       11.8 %      10.2 %      10.3 % 
   
 
 
    
 
 
    
 
 
                            
 
 
    
 
 
    
 
 
  
Corporate Expenses
                             9,553       9,420       11,357                          
                           
 
 
    
 
 
    
 
 
                          
Operating Income
                             4,256       2,433       2,433                          
Other Income (Expense), Net

                             2,778       (254)       (1,063)                          
                           
 
 
    
 
 
    
 
 
                          
Income Before Income Taxes
                             7,034       2,179       1,370                          
Income Tax Provision (Benefit)
                             605       895       (389 )                         
                           
 
 
    
 
 
    
 
 
                          
Net Income
                           $ 6,429     $ 1,284     $ 1,759                          
                           
 
 
    
 
 
    
 
 
                          
Summary of Other Information by Segment
Other information by segment is presented below:
 
(In thousands)   
Assets
  
 
 
January 31,
 
    
2022
     
2021
  
Product Identification
    $ 51,732      $ 50,047  
T&M
      50,374        51,262  
Corporate*
      12,849        14,164  
    
 
 
     
 
 
  
Total
    $ 114,955      $ 115,473  
    
 
 
     
 
 
  
 
*
Corporate assets consist principally of cash, cash equivalents, deferred tax assets and refunds, and certain prepaid corporate assets.
 
(In thousands)   
Depreciation and
Amortization
     
Capital Expenditures
  
    
2022
     
2021
     
2020
     
2022
     
2021
     
2020
  
Product Identification
    $ 1,157      $ 1,835      $ 1,928      $ 847      $ 1,563      $ 2,001  
T&M
      2,837        4,148        4,356        949        1,024        905  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,994      $ 5,983      $ 6,284      $ 1,796      $ 2,587      $ 2,906  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Summary of Selected Financial Information by Geographic Area
Presented below is selected financial information by geographic area:
 
 
 
 
 
 
 
Long-Lived Assets*
 
(In thousands)
  
Revenue
 
  
January 31,
 
 
  
2022
 
  
2021
 
  
2020
 
  
2022
 
  
2021
 
United States
    $ 68,185      $ 70,911      $ 83,671      $ 29,131      $ 31,226  
Europe
      31,922        29,029        29,617        1,486        2,274  
Canada
      6,519        5,574        5,719        9        13  
Asia
      5,926        5,105        8,316       
15
        —  
Central and South America
      3,271        3,950        4,145        —        —  
Other
      1,657        1,464        1,978        —        —  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 117,480      $ 116,033      $ 133,446      $ 30,641      $ 33,513  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Long-lived assets exclude goodwill assigned to the T&M segment of $4.5 million at both January 31, 2022 and 2021 and $7.6 million and $8.3 million assigned to the PI segment at January 31, 2022 and 2021, respectively.
v3.22.1
Product Warranty Liability (Tables)
 12 Months Ended
Jan. 31, 2022
Guarantees and Product Warranties [Abstract]  
Activity in Product Warranty Liability Activity in the product warranty liability, which is included in other accrued expenses in the accompanying consolidated balance sheet, is as follows:
    
2022
    
2021
    
2020
  
(In thousands)                   
Balance, beginning of the year

    $ 730     $ 850     $ 832  
Provision for Warranty Expense

      2,174       855       1,733  
Cost of Warranty Repairs

      (2,070 )      (975 )      (1,715 ) 
    
 
 
    
 
 
    
 
 
  
Balance, end of the year

    $ 834     $ 730     $ 850  
 
   
 
 
    
 
 
    
 
 
  
v3.22.1
Fair Value Measurements (Tables)
 12 Months Ended
Jan. 31, 2022
Fair Value Disclosures [Abstract]  
Summary of Changes in Fair value of Level 3 Financial Liability
Our long-term debt, including the current portion of long-term debt not reflected in the financial statements at fair value, is reflected in the table below:
 
 
  
Fair Value Measurement at
January 31, 2022
 
  
 
 
(In thousands)
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
  
Carrying
Value
 
Long-Term Debt and Related Current Maturities
    $ —      $ —      $ 9,255      $ 9,255      $ 9,250  
     
    
Fair Value Measurement at
January 31, 2021
         
(In thousands)   
Level 1
     
Level 2
     
Level 3
     
Total
     
Carrying
Value
  
Long-Term Debt and Related Current Maturities
    $ —      $ —      $ 12,586      $ 12,586      $ 12,576  
v3.22.1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 12 Months Ended
Jun. 15, 2021
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
May 06, 2020
Summary Of Significant Accounting Policies [Line Items]          
Highly liquid investments with an original maturity   90 days or less      
Cash of held in foreign bank accounts   $ 3,700,000 $ 4,600,000    
Net transactional foreign exchange gain (loss)   (288,000) 590,000 $ (448,000)  
Advertising expense   1,300,000 900,000 1,800,000  
Impairment of Long lived assets held for use   $ 0 $ 0 $ 0  
Number of common equivalent shares   345,085 642,623 202,187  
No compensation expense is recognized on forfeited options   $ 0      
Liability for self-insured claims   200,000 $ 200,000    
Gain on Extinguishment of Debt – PPP Loan   4,466,000      
Foreign Exchange [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Net transactional foreign exchange gain (loss)   300,000 $ 600,000 $ (400,000)  
Paycheck Protection Program Loan [Member] | Greenwood Credit Union [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Debt instrument face amount         $ 4,400,000
Gain on Extinguishment of Debt – PPP Loan   4,500,000      
Amount of PPP loan forgiven $ 4,400,000        
Promissory Note [Member] | Paycheck Protection Program Loan [Member] | Greenwood Credit Union [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Debt related commitment fees and debt issuance costs   $ 4,400,000      
Maximum [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Percentage of revenue satisfied for services   11.00% 9.00%    
Maximum [Member] | Airborne Product [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Products warranty period   5 years      
Minimum [Member] | Airborne Product [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Products warranty period   3 years      
Land Improvements [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   20 years      
Land Improvements [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Building And Leasehold Improvements [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   45 years      
Building And Leasehold Improvements [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Machinery and Equipment [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Machinery and Equipment [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   3 years      
Computer Equipment And Software [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Computer Equipment And Software [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   3 years      
v3.22.1
Revenue Recognition - Summary of Revenues Disaggregated by Primary Geographic Markets (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Disaggregation of Revenue [Line Items]      
Total Revenue $ 117,480 $ 116,033 $ 133,446
United States [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 68,185 70,911 83,671
Europe [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 31,922 29,029 29,617
Canada [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 6,519 5,574 5,719
Asia [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 5,926 5,105 8,316
Central and South America [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 3,271 3,950 4,145
Other [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 1,657 $ 1,464 $ 1,978
v3.22.1
Revenue Recognition - Summary of Revenues Disaggregated by Primary Product Type (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Disaggregation of Revenue [Line Items]      
Total Revenue $ 117,480 $ 116,033 $ 133,446
Hardware [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 31,492 34,111 48,959
Supplies [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 73,244 71,772 71,838
Service and Other [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 12,744 $ 10,150 $ 12,649
v3.22.1
Revenue Recognition - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Jul. 31, 2021
Jan. 31, 2022
Jan. 31, 2021
Contract liabilities and extended warranties   $ 262,000 $ 285,000
Revenue recognized   269,000  
Contract assets balance   1,200,000 900,000
Additional contract costs     $ 400,000
Amortization of incremental direct costs   60,000  
Deferred incremental direct contract costs reported in other current assets   100,000  
Deferred incremental direct costs net of accumulated amortization   $ 1,300,000  
Capitalized contract costs additional amounts incurred amortization period   6 years 20 years
Change in Accounting Method Accounted for as Change in Estimate [Member]      
Capitalized contract costs additional amounts incurred amortization period 20 years    
v3.22.1
Intangible Assets - Fair Value of Acquired Identifiable Intangible Assets and Related Estimated Useful Lives (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 36,437 $ 36,437
Accumulated Amortization (17,410) (15,220)
Currency Translation Adjustment 173 285
Net Carrying Amount 19,200 21,502
Customer Contract Relationships [Member] | Honeywell Asset Purchase and License Agreement [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 27,243 27,243
Accumulated Amortization (11,073) (9,712)
Net Carrying Amount 16,170 17,531
Customer Contract Relationships [Member] | Miltope [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,100 3,100
Accumulated Amortization (2,515) (2,284)
Net Carrying Amount 585 816
Customer Contract Relationships [Member] | RITEC [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,830 2,830
Accumulated Amortization (1,557) (1,423)
Net Carrying Amount 1,273 1,407
Existing Technology [Member] | TrojanLabel ApS [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,327 2,327
Accumulated Amortization (1,767) (1,405)
Currency Translation Adjustment 127 196
Net Carrying Amount 687 1,118
Distributor Relations [Member] | TrojanLabel ApS [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 937 937
Accumulated Amortization (498) (396)
Currency Translation Adjustment 46 89
Net Carrying Amount $ 485 $ 630
v3.22.1
Intangible Assets - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Intangible Assets [Line Items]      
Impairments of intangible assets $ 0 $ 0  
Amortization expense $ 2,200,000 $ 4,100,000 $ 4,200,000
Customer Contracts [Member] | RITEC [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 4 years    
Customer Contracts [Member] | Honeywell Asset Purchase and License Agreement [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 6 years    
Customer Contracts [Member] | Intangible Assets, Amortization Period [Member]      
Intangible Assets [Line Items]      
Decrease In amortization expense $ 1,800,000    
Increase in net income due to change of amortization method $ 1,800,000    
Customer Contracts [Member] | Intangible Assets, Amortization Period [Member] | RITEC [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 20 years    
Customer Contracts [Member] | Intangible Assets, Amortization Period [Member] | Honeywell Asset Purchase and License Agreement [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 20 years    
v3.22.1
Intangible Assets - Summary of Estimated Amortization Expense (Detail)
$ in Thousands
Jan. 31, 2022
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2023 $ 1,632
2024 1,693
2025 1,008
2026 1,008
2027 $ 1,008
v3.22.1
Inventories - Additional Information (Detail) - USD ($)
$ in Millions
Jan. 31, 2022
Jan. 31, 2021
Inventory Disclosure [Abstract]    
Inventory demonstration equipment $ 3.4 $ 4.0
v3.22.1
Inventories - Components of Inventories (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Inventory Disclosure [Abstract]    
Materials and Supplies $ 22,709 $ 20,265
Work-in-Progress 1,489 2,076
Finished Goods 19,718 16,371
Inventory, Gross 43,916 38,712
Inventory Reserve (9,307) (8,652)
Inventories $ 34,609 $ 30,060
v3.22.1
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Land and Land Improvement $ 1,004 $ 1,004
Buildings and Leasehold Improvements 12,666 12,642
Machinery and Equipment 23,238 23,346
Computer Equipment and Software 13,913 13,847
Gross Property, Plant and Equipment 50,821 50,839
Accumulated Depreciation (39,380) (38,828)
Net Property Plant and Equipment $ 11,441 $ 12,011
v3.22.1
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2020
Jan. 31, 2019
Depreciation expense on property, plant and equipment $ 1,700,000 $ 1,900,000 $ 2,000,000.0
Nonoperating Income (Expense) [Member]      
Capitalized Computer Software, Impairments $ 696,000    
v3.22.1
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Payables and Accruals [Abstract]        
Warranty $ 834 $ 730 $ 850 $ 832
Professional Fees 411 546    
Freight 347 57    
Lease Liability 327 372    
Accrued Property & Sales Tax 316 443    
Stockholder Relation Fees 102 91    
Dealer Commissions 139 57    
Other Accrued Expenses 1,637 1,578    
Total $ 4,113 $ 3,874    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Total Total    
v3.22.1
Credit Agreement and Long- Term Debt - Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Debt Instrument [Line Items]    
USD Term Loan $ 9,250 $ 12,576
Debt Issuance Costs, net of accumulated amortization (96) (141)
Current Portion of Term Loans (1,000) (5,326)
Long-Term Debt 8,154 7,109
Term Loan Due September 30, 2025 [Member]    
Debt Instrument [Line Items]    
USD Term Loan $ 9,250  
Term Loan Due January 31, 2021 [Member]    
Debt Instrument [Line Items]    
USD Term Loan   $ 12,576
v3.22.1
Credit Agreement and Long- Term Debt- Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets (Parenthetical) (Detail)
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Term Loan Due September 30, 2025 [Member]    
Debt Instrument [Line Items]    
Debt instrument, description of variable rate basis 2.35% as of January 31, 2022); maturity date of September 30, 2025  
Interest rate 2.35%  
Debt instrument, maturity date Sep. 30, 2025  
Term Loan Due January 31, 2021 [Member]    
Debt Instrument [Line Items]    
Debt instrument, description of variable rate basis   4.65% as of January 31, 2021
Interest rate   4.65%
v3.22.1
Credit Agreement and Long- Term Debt- Schedule of Required Principal Payments Remaining on Long Term Debt Outstanding (Detail) - Term Loan [Member]
$ in Thousands
Jan. 31, 2022
USD ($)
Debt Instrument [Line Items]  
Fiscal 2023 $ 1,000
Fiscal 2024 1,000
Fiscal 2025 1,250
Fiscal 2026 6,000
Long-term Debt $ 9,250
v3.22.1
Credit Agreement and Long- Term Debt - Additional Information (Detail) - USD ($)
 12 Months Ended
Mar. 24, 2021
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Debt Instrument [Line Items]        
Interest expense on long term debt   $ 677,000 $ 955,000 $ 682,000
Principal payment terms   The Amended Credit Agreement requires that the term loan be paid in quarterly installments on the last day of each of our fiscal quarters with the final payment due on September 30, 2025.    
Interest Expense [Member]        
Debt Instrument [Line Items]        
Interest expense on long term debt   $ 300,000 $ 500,000 $ 400,000
Term Loan [Member]        
Debt Instrument [Line Items]        
Longterm Debt instrument, maturity date   Sep. 30, 2025    
Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Variable interest rate   0.50    
LIBOR [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Interest rate   1.00%    
Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Interest rate   0.50%    
Minimum [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Commitment fee rate   0.15%    
Percentage added to variable rate   0.60%    
Minimum [Member] | LIBOR [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Interest rate   1.60%    
Maximum [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Commitment fee rate   0.30%    
Percentage added to variable rate   1.30%    
Maximum [Member] | LIBOR [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Interest rate   2.30%    
Bank of America, N.A. [Member]        
Debt Instrument [Line Items]        
Term loans repaid $ 2,600,000      
Bank of America, N.A. [Member] | Term Loan [Member]        
Debt Instrument [Line Items]        
Principal amount of debt   $ 10,000,000.0    
Term loan, principal amount   10,000,000.0    
Bank of America, N.A. [Member] | Revolving Credit Facility [Member]        
Debt Instrument [Line Items]        
Maximum borrowing capacity   $ 22,500,000    
Revolving line of credit, Outstanding loan amount weighted average interest rate   4.10% 3.41%  
Commitement fees on the undrawn portion of the credit facility   $ 50,000 $ 8,300  
Line of credit remaining borrowing capacity   22,500,000    
Bank of America, N.A. [Member] | Revolving Credit Facility [Member] | Other Expense [Member]        
Debt Instrument [Line Items]        
Interest Expense, Debt   4,000 $ 188,000  
Bank of America, N.A. [Member] | Maximum [Member] | Term Loan [Member]        
Debt Instrument [Line Items]        
Principal amount of debt   10,000,000.0    
Term loan, principal amount   $ 10,000,000.0    
v3.22.1
Paycheck Protection Program Loan - Additional information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 15, 2021
Jan. 31, 2022
May 06, 2020
Gain on Extinguishment of Debt – PPP Loan   $ 4,466  
Paycheck Protection Program Loan [Member] | Green wood Credit Union [Member]      
Debt instrument face amount     $ 4,400
Loan, payment terms   The PPP Loan, originally scheduled to mature on May 6, 2022, was unsecured and bore interest at a rate of 1.0% per annum, accruing from the loan date  
Loan, maturity date   May 06, 2022  
Loan, interest rate   1.00%  
Loan, payments due   $ 0  
Amount of PPP loan forgiven $ 4,400    
Gain on Extinguishment of Debt – PPP Loan   $ 4,500  
v3.22.1
Derivative Financial Instruments and Risk Management - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Aug. 01, 2020
Jan. 31, 2022
Cash Flow Hedging [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Cash paid termination of swaps $ 700,000  
Cross Currency Interest Rate Contract [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of losses reclassify from Accumulated OCI into loss during next 12 months   $ 100,000
Interest Rate Swap Termination 200,000  
Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain Reclassified from Accumulated OCI into Income (Expense) $ 58,000  
v3.22.1
Derivative Financial Instruments and Risk Management - Schedule of Impact of the Derivative Instruments in the Condensed Consolidated Financial Statements (Detail) - Cash Flow Hedge [Member] - Cross Currency Interest Rate Contract [Member] - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain (Loss) Recognized in OCI on Derivative   $ (360)
Location of Gain Reclassified from Accumulated OCI into Income (Expense) Other Income  
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income $ (79) $ (288)
v3.22.1
Employee Retention Credit - Additional Information (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jul. 31, 2022
Jul. 31, 2021
Jun. 30, 2021
Jan. 31, 2022
Jul. 01, 2022
Mar. 22, 2022
Employee Retention Credit Disclosure [Line Items]            
ERC receivable       $ 3,135 $ 3,100  
Subsequent Event [Member]            
Employee Retention Credit Disclosure [Line Items]            
ERC receivable           $ 3,100
Cost of Sales [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - cost of revenue       1,700    
Selling and Marketing Expense [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - selling and marketing       800    
Research and Development Expense [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - research and development       300    
General and Administrative Expense [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - general and administrative expenses       $ 300    
Prepaid Expenses and Other Current Assets [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee retention credit   $ 3,100        
Cares Act [Member]            
Employee Retention Credit Disclosure [Line Items]            
Percentage of refundable tax credit can be claimed of qualified wages     70.00%      
Threshold qualified wages per employee per calendar quarter     $ 10,000      
Maximum threshold employee retention credit per employee per calendar quarter     $ 7,000      
Percentage of reduction of gross Receipts to qualify for employee retention credit       20.00%    
Cares Act [Member] | Prepaid Expenses and Other Current Assets [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - cost of revenue $ 3,100          
v3.22.1
Royalty Obligation - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2018
Guaranteed Minimum Royalty Payment $ 7,500    
Royalty Obligation, Current 2,000 $ 2,000  
Royalty Obligation Non Current 4,361 6,161  
Accrued Royalties, Current, Excess Royalty Payment Due $ 235 177  
Honeywell Asset Purchase and License Agreement [Member]      
Payment Term Period 10 years    
Minimum Royalty Payment Obligation     $ 15,000
Fair Value Assumption Percentage Of Present Value Factor 2.80%    
Royalty Obligation, Current $ 2,000    
Royalty Obligation Non Current 4,400    
Excess Royalty Payments 500 $ 31  
Accrued Royalties, Current, Excess Royalty Payment Due $ 200    
v3.22.1
Leases - Additional Information (Detail)
 12 Months Ended
Jan. 31, 2022
Lessee, Operating Lease, Option to Extend options to extend the lease term for periods of up to five years
Operating Lease, Weighted Average Remaining Lease Term 4 years 6 months
Operating Lease, Weighted Average Discount Rate, Percent 3.85%
Maximum [Member]  
Operating Lease Remaining Lease Term 6 years
Minimum [Member]  
Operating Lease Remaining Lease Term 1 year
v3.22.1
Leases - Schedule Of Balance Sheet And Other Information Related To Operating Leases (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Operating Leases [Abstract]    
Right of Use Assets $ 1,094 $ 1,389
Other Accrued Expenses 327 372
Lease Liabilities $ 808 $ 1,065
v3.22.1
Leases - Lease Cost Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
General and Administrative Expense [Member]    
Operating Lease Costs $ 510 $ 485
v3.22.1
Leases - Maturities of lease liabilities (Detail)
$ in Thousands
Jan. 31, 2022
USD ($)
Leases [Abstract]  
2023 $ 327
2024 308
2025 203
2026 159
2027 153
Thereafter 91
Total Lease Payments 1,241
Less: Imputed Interest (106)
Total Lease Liabilities $ 1,135
v3.22.1
Leases - Supplemental cash flow information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities [Abstract]    
Cash paid for operating lease liabilities $ 372 $ 429
v3.22.1
Accumulated Other Comprehensive Loss - Changes in Balance of Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance $ 74,683 $ 71,375 $ 69,775
Other Comprehensive Income (Loss) (1,364) 709 (275)
Ending Balance 81,012 74,683 71,375
Foreign Currency Translation Adjustments [Member]      
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance (275) (985) (852)
Other Comprehensive Income (Loss) before reclassification (1,426) 710 (133)
Other Comprehensive Income (Loss) (1,426) 710 (133)
Ending Balance (1,701) (275) (985)
Net Unrealized Gain/(Loss) on Cash Flow Hedges [Member]      
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance (109) (108) 34
Other Comprehensive Income (Loss) before reclassification   (239) 122
Amounts reclassified from AOCL to Earnings 62 193 (264)
Cross-Currency Interest Rate Swap Termination   45  
Other Comprehensive Income (Loss) 62 (1) (142)
Ending Balance (47) (109) (108)
Accumulated Other Comprehensive Income (Loss) [Member]      
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance (384) (1,093) (818)
Other Comprehensive Income (Loss) before reclassification (1,426) 471 (11)
Amounts reclassified from AOCL to Earnings 62 193 (264)
Cross-Currency Interest Rate Swap Termination   45  
Other Comprehensive Income (Loss) (1,364) 709 (275)
Ending Balance $ (1,748) $ (384) $ (1,093)
v3.22.1
Shareholders' Equity - Additional information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Class of Stock [Line Items]    
Company shares given to employees, shares 27,222 15,357
Company shares given to employees, value $ 0.4 $ 0.1
v3.22.1
Share-Based Compensation - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding 598,043 622,083 679,044 771,145
Number of options granted 0 0 0  
Aggregate intrinsic value of options exercised $ 26,000 $ 4,000 $ 500,000  
Reservation of shares under Stock Purchase Plan 247,500      
Restricted Stock or Unit Expense $ 1,266,000 $ 1,285,000 $ 1,136,000  
Employee Stock Purchase Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employee Stock Purchase Plan discount rate 15.00%      
2007 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding 323,468      
2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding 135,500      
Stock Options [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation expense related to options $ 8,000      
Unrecognized compensation expense to be recognized, Weighted average period 3 months 18 days      
Aggregate intrinsic value of option exercised $ 300,000      
Aggregate intrinsic value of the options outstanding $ 300,000      
2014 Restricted Stock Units (RSUs) [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation expense to be recognized, Weighted average period 1 year      
Unrecognized compensation expense related to RSUs and RSAs $ 1,700,000      
2014 Restricted Stock Units (RSUs) [Member] | 2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of unvested shares 135,403      
RSA [Member] | 2015 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding 139,075      
RSA [Member] | 2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of unvested shares 20,410      
Performance Based RSUs [Member] | 2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of unvested shares 43,529      
Restricted Stock Award [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted Stock or Unit Expense $ 60,000,000      
v3.22.1
Share-Based Compensation - Share-Based Compensation Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation [Abstract]      
Stock Options $ 210 $ 517 $ 616
Restricted Stock Awards and Restricted Stock Units 1,266 1,285 1,136
Employee Stock Purchase Plan 17 17 23
Total $ 1,493 $ 1,819 $ 1,775
v3.22.1
Share-Based Compensation - Aggregated Information Regarding Stock Options Granted (Detail) - $ / shares
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation [Abstract]      
Beginning balance, Number of Options 622,083 679,044 771,145
Granted, Number of Options 0 0 0
Exercised, Number of Options (6,425) (1,200) (57,175)
Forfeited, Number of Options (17,615) (54,361) (34,526)
Canceled, Number of Options 0 (1,400) (400)
Ending balance, Number of Options 598,043 622,083 679,044
Beginning balance, Weighted-Average Exercise Price Per Share $ 14.63 $ 14.46 $ 14.30
Granted, Weighted-Average Exercise Price Per Share 0 0 0
Exercised, Weighted-Average Exercise Price Per Share 9.34 7.60 11.60
Forfeited, Weighted-Average Exercise Price Per Share 15.09 12.89 15.73
Cancelled, Weighted-Average Exercise Price Per Share 0 7.36 6.22
Ending balance, Weighted-Average Exercise Price Per Share $ 14.67 $ 14.63 $ 14.46
v3.22.1
Share-Based Compensation - Summary of Options Outstanding (Detail) - $ / shares
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding, total 598,043 622,083 679,044 771,145
Outstanding, Weighted Average Exercise Price $ 14.67      
Exercisable, Weighted Average Exercise Price $ 14.63      
Outstanding Remaining Contractual Life 4 years 4 months 24 days      
Number of shares exercisable, total 591,493      
Exercisable Remaining Contractual Life 4 years 3 months 18 days      
$5.00 - $10.00 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Outstanding Range of Exercise prices, Lower Limit $ 5.00      
Outstanding Range of Exercise prices, Upper Limit $ 10.00      
Outstanding, Number of shares 35,844      
Outstanding, Weighted Average Exercise Price $ 7.97      
Exercisable, Weighted Average Exercise Price $ 7.97      
Outstanding Remaining Contractual Life 6 months      
Exercisable, Number of shares 35,844      
Exercisable Remaining Contractual Life 6 months      
$10.01 - $15.00 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Outstanding Range of Exercise prices, Lower Limit $ 10.01      
Outstanding Range of Exercise prices, Upper Limit $ 15.00      
Outstanding, Number of shares 345,749      
Outstanding, Weighted Average Exercise Price $ 13.62      
Exercisable, Weighted Average Exercise Price $ 13.62      
Outstanding Remaining Contractual Life 3 years 10 months 24 days      
Exercisable, Number of shares 345,749      
Exercisable Remaining Contractual Life 3 years 10 months 24 days      
$15.01 - $20.00 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Outstanding Range of Exercise prices, Lower Limit $ 15.01      
Outstanding Range of Exercise prices, Upper Limit $ 20.00      
Outstanding, Number of shares 216,450      
Outstanding, Weighted Average Exercise Price $ 17.48      
Exercisable, Weighted Average Exercise Price $ 17.43      
Outstanding Remaining Contractual Life 5 years 9 months 18 days      
Exercisable, Number of shares 209,900      
Exercisable Remaining Contractual Life 5 years 9 months 18 days      
v3.22.1
Share-Based Compensation - Aggregated Information Regarding RSUs and RSAs Granted (Detail) - Restricted Stock Award And Restricted Stock Unit [Member] - $ / shares
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Beginning balance, Outstanding Restricted Stock Units and Restricted Stock Awards 197,413 134,634 133,667
Granted, Restricted Stock Units and Restricted Stock Awards 151,406 245,131 119,522
Vested, Restricted Stock Units and Restricted Stock Awards (126,939) (64,997) (59,930)
Forfeited, Restricted Stock Units and Restricted Stock Awards (22,538) (117,355) (58,625)
Ending balance, Outstanding Restricted Stock Units and Restricted Stock Awards 199,342 197,413 134,634
Beginning balance, Weighted Average Grant Date Fair Value $ 9.96 $ 16.79 $ 16.90
Granted, Weighted Average Grant Date Fair Value 14.51 7.61 19.86
Vested, Weighted Average Grant Date Fair Value 10.43 17.28 14.50
Forfeited, Weighted Average Grant Date Fair Value 14.26 8.83 19.00
Ending balance, Weighted Average Grant Date Fair Value $ 12.63 $ 9.96 $ 16.79
v3.22.1
Share-Based Compensation - Summarized Plan Activity (Detail) - Employee Stock Purchase Plan [Member] - shares
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares Reserved, Beginning Balance 10,374 24,974 33,853
Shares Purchased (8,092) (14,600) (8,879)
Shares Reserved, Ending Balance 2,282 10,374 24,974
v3.22.1
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Income Tax Disclosure [Abstract]      
Domestic $ 5,046 $ (1,193) $ 1,930
Foreign 1,988 3,372 (560)
Income before Income Taxes $ 7,034 $ 2,179 $ 1,370
v3.22.1
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Current:      
Federal $ (183) $ 1,272 $ 660
State 76 224 221
Foreign 501 420 368
Current Income Tax Expense 394 1,916 1,249
Deferred:      
Federal 180 (910) (1,364)
State 177 (189) (282)
Foreign (146) 78 8
Deferred Income Tax Expense Total 211 (1,021) (1,638)
Total $ 605 $ 895 $ (389)
v3.22.1
Income Taxes - Reconciliation of income tax provision/(benefit) With The Amount Computed By Applying The Statutory Federal Income Tax Rate To The Income Before Income Tax Provision/(benefit) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Income Tax Disclosure [Abstract]      
Income Tax Provision at Statutory Rate $ 1,477 $ 458 $ 288
Return to Provision Adjustment 368 (2) (207)
State Taxes, Net of Federal Tax Effect 143 28 (48)
Denmark Statutory Audit 0 341 0
Foreign Rate Differential 61 197 315
Change in Valuation Allowance 57 (81) 256
Meals and Entertainment 9 11 31
Canada Withholding Taxes 0 62 0
Global Intangible Low Taxed Income 0 14 107
Foreign Tax Credits 0 0 (344)
Foreign Deferred Intangible Income (55) (150) (107)
Share Based Compensation (95) 171 (145)
R&D Credits (180) (157) (209)
Change in Reserves Related to ASC 740 Liability (245) (10) (352)
PPP Loan Forgiveness (937) 0 0
Other 2 13 26
Total $ 605 $ 895 $ (389)
v3.22.1
Income Taxes - Tax Effects of Temporary Differences that gave Rise to Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Deferred Tax Assets:    
Inventory $ 2,159 $ 2,700
Honeywell Royalty Liability 2,655 2,590
State R&D Credits 1,925 1,546
Share-Based Compensation 593 600
Bad Debt 213 245
Warranty Reserve 198 176
Compensation Accrual 322 159
Net Operating Loss 152 154
ASU 842 Adjustment—Lease Liability 93 125
Unrecognized State Tax Benefits 64 101
Foreign Tax Credit 154 83
Deferred Service Contract Revenue 61 68
Other 224 308
Deferred Tax Assets, Total 8,813 8,855
Deferred Tax Liabilities:    
Accumulated Tax Depreciation in Excess of Book Depreciation 455 752
Intangibles 767 399
ASU 842 Adjustment – Lease Liability 90 119
Other 318 307
Deferred Tax Liabilities, Total 1,630 1,577
Subtotal 7,183 7,278
Valuation Allowance (1,778) (1,721)
Net Deferred Tax Assets 5,405 5,557
Deferred taxes are reflected in the consolidated balance sheet as follows:    
Deferred Tax Assets 5,651 5,941
Deferred Tax Liabilities (246) (384)
Total Net Deferred Tax Assets $ 5,405 $ 5,557
v3.22.1
Income Taxes - Change in Balance of Unrecognized Tax Benefits, Excluding Interest and Penalties (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Income Tax Disclosure [Abstract]      
Balance ,beginning of the year $ 384 $ 362 $ 618
Increases in prior period tax positions 63 59 0
Increases in current period tax positions 67 5 2
Reductions related to lapse of statutes of limitations (211) (42) (26)
Reductions related to settlement with tax authorities 0 0 (232)
Balance at January 31 $ 303 $ 384 $ 362
v3.22.1
Income Taxes - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Effective tax rate for income from continuing operation 8.60% 41.10% 28.40%  
Valuation allowance $ 1,778,000 $ 1,721,000    
Recognized (benefit) expense related to interest and penalties 211,000 50,000    
Accrued potential interest and penalties 95,000      
Deferred Tax Assets Operating loss carryforwards 152,000 154,000    
Deferred tax assets tax credit carryforwards research $ 1,925,000 1,546,000    
Deferred tax assets tax credit carryforwards expiration period 2022 through 2029      
Deemed repatriated earnings $ 7,300,000      
Recognized tax benefits excluding interest and penalties 303,000 384,000 $ 362,000 $ 618,000
Foreign tax credit 154,000 $ 83,000    
Additional Foreign Tax Credit [Member]        
Foreign tax credit 200,000      
Tax Credits Carry Forwards [Member]        
Deferred tax assets tax credit carryforwards research 1,600,000      
CHINA        
Deferred Tax Assets Operating loss carryforwards $ 600,000      
Deferred tax assets operating loss carryforwards expiration period 2023 through 2027      
DELAWARE        
Deferred Tax Assets Operating loss carryforwards $ 100,000      
Federal Tax [Member]        
Recognized (benefit) expense related to interest and penalties     74,000  
Recognized tax benefits excluding interest and penalties     $ 232,000  
v3.22.1
Nature of Operations, Segment Reporting and Geographical Information - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
USD ($)
Segment
Jan. 31, 2021
USD ($)
Segment
Jan. 31, 2020
Segment
Segment Reporting Information [Line Items]      
Number of reporting segments | Segment 2    
Customer accounted for greater than 10% of net sales | Segment 10 10 10
Goodwill assigned $ 12,156 $ 12,806  
T&M [Member]      
Segment Reporting Information [Line Items]      
Goodwill assigned 4,500 4,500  
Product Identification [Member]      
Segment Reporting Information [Line Items]      
Goodwill assigned $ 7,600 $ 8,300  
v3.22.1
Nature of Operations, Segment Reporting and Geographical Information - Net Sales and Segment Operating Profit (loss) for Each Reporting Segment (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Segment Reporting Information [Line Items]      
Revenue $ 117,480 $ 116,033 $ 133,446
Corporate Expenses 9,553 9,420 11,357
Operating Income 4,256 2,433 2,433
Other Income (Expense), Net $ 2,778 $ (254) $ (1,063)
Segment Operating Profit % of Net Sales 11.80% 10.20% 10.30%
Income before Income Taxes $ 7,034 $ 2,179 $ 1,370
Income Tax Provision (Benefit) 605 895 (389)
Net Income 6,429 1,284 1,759
Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Operating Income 13,809 11,853 13,790
Operating Segments [Member] | Product Identification [Member]      
Segment Reporting Information [Line Items]      
Revenue 90,915 90,268 88,116
Operating Income $ 10,411 $ 12,885 $ 7,509
Segment Operating Profit % of Net Sales 11.50% 14.30% 8.50%
Operating Segments [Member] | T&M [Member]      
Segment Reporting Information [Line Items]      
Revenue $ 26,565 $ 25,765 $ 45,330
Operating Income $ 3,398 $ (1,032) $ 6,281
Segment Operating Profit % of Net Sales 12.80% (4.00%) 13.90%
Corporate Expenses [Member]      
Segment Reporting Information [Line Items]      
Corporate Expenses $ 9,553 $ 9,420 $ 11,357
v3.22.1
Nature of Operations, Segment Reporting and Geographical Information - Summary of Other Information by Segment (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Segment Reporting Information [Line Items]      
Assets $ 114,955 $ 115,473  
Depreciation and Amortization 3,994 5,983 $ 6,284
Capital Expenditures 1,796 2,587 2,906
Operating Segments [Member] | Product Identification [Member]      
Segment Reporting Information [Line Items]      
Assets 51,732 50,047  
Depreciation and Amortization 1,157 1,835 1,928
Capital Expenditures 847 1,563 2,001
Operating Segments [Member] | T&M [Member]      
Segment Reporting Information [Line Items]      
Assets 50,374 51,262  
Depreciation and Amortization 2,837 4,148 4,356
Capital Expenditures 949 1,024 $ 905
Corporate Expenses [Member]      
Segment Reporting Information [Line Items]      
Assets $ 12,849 $ 14,164  
v3.22.1
Nature of Operations, Segment Reporting and Geographical Information - Summary of Selected Financial Information by Geographic Area (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 117,480 $ 116,033 $ 133,446
Long-Lived Assets 30,641 33,513  
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 68,185 70,911 83,671
Long-Lived Assets 29,131 31,226  
Europe [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 31,922 29,029 29,617
Long-Lived Assets 1,486 2,274  
Asia [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 5,926 5,105 8,316
Long-Lived Assets 15    
Canada [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 6,519 5,574 5,719
Long-Lived Assets 9 13  
Central and South America [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 3,271 3,950 4,145
Other [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 1,657 $ 1,464 $ 1,978
v3.22.1
Employee Benefit Plans - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Postemployment Benefits [Abstract]      
Contributions paid or accrued amounted $ 0.5 $ 0.4 $ 0.5
v3.22.1
Product Warranty Liability - Activity in Product Warranty Liability (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Product Warranties Disclosures [Abstract]      
Balance, beginning of the year $ 730 $ 850 $ 832
Provision for Warranty Expense 2,174 855 1,733
Cost of Warranty Repairs (2,070) (975) (1,715)
Balance, end of the year $ 834 $ 730 $ 850
v3.22.1
Product Warranty Liability - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
USD ($)
Product Warranties Disclosures [Abstract]  
Reimbursement received from vendor $ 975,000
v3.22.1
Concentration of Risk - Additional Information (Detail) - Vendor [Member] - Customer [Member]
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Purchases [Member]      
Concentration Risk [Line Items]      
Concentration Risk, Percentage 23.30% 23.20% 21.20%
Trade Accounts Payables [Member]      
Concentration Risk [Line Items]      
Concentration Risk, Percentage 15.40% 28.30% 28.00%
v3.22.1
Fair Value Measurements - Schedule of Company's Long-Term Debt Including the Current Portion Not Reflected in Financial Statements at Fair Value (Detail) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term Debt and Related Current Maturities $ 9,255 $ 12,586
Fair Value [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term Debt and Related Current Maturities 9,255 12,586
Carrying Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term Debt and Related Current Maturities $ 9,250 $ 12,576
v3.22.1
Schedule II - Valuation and Qualifying Accounts and Reserves (Detail) - Allowance for Doubtful Accounts [Member] - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Year $ 1,054 $ 856 $ 521
Provision/(Benefit) Charged to Operations 50 194 546
Deductions (278) 4 (211)
Balance at End of Year $ 826 $ 1,054 $ 856