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Leases

3 Months Ended

Jul. 31, 2025

Lessee Finance And Operating Leases Abstract

Lessee, Finance and Operating Leases [Text Block]

Note 4. Leases

Operating Leases

At July 31, 2025, the Company had lease agreements, as lessee, for railcars. All of the leases are accounted for as operating leases. The lease agreements do not contain a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the present value of future minimum lease payments. The lease term for all of the Company’s leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream.

The components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations and total cash paid for amounts included in the measurement of lease liabilities are as follows (amounts in thousands):

	Three Months Ended July 31,				Six Months Ended July 31,
	2025		2024		2025		2024

Operating lease expense	$	2,066	$	1,688	$	4,074	$	3,370
Variable lease expense		38		(59)		104		(5)
Total lease expense	$	2,104	$	1,629	$	4,178	$	3,365

Total cash paid in measurement of lease liability	$	1,680	$	1,583	$	3,851	$	3,160

The following table is a summary of future minimum rentals on such leases at July 31, 2025 (amounts in thousands):

Years Ended January 31,	Minimum Rentals

Remainder of 2026	$	3,862
2027		7,706
2028		6,378
2029		3,698
2030		2,036
Thereafter		133
Total		23,813
Less: present value discount		2,556
Operating lease liabilities	$	21,257

At July 31, 2025, the weighted average remaining lease term is 3.1 years, and the weighted average discount rate is 6.59% for the outstanding leases.

At January 31, 2025, the weighted average remaining lease term was 3.5 years, and the weighted average discount rate was 6.60% for the outstanding leases.

Finance Lease

At July 31, 2025, the Company had one lease agreement that was classified as a finance lease for an electrical substation facility. Prepayments totaling $15.6 million were made prior to fiscal year 2025, with monthly payments of approximately $39,000 to be made over the term of the lease. The lease term for this lease includes the noncancelable period of the lease and any periods for which only the Company has the option to cancel but is reasonably expected to continue the lease. Based on this, the lease term was determined to be 10 years. Control of the facility’s output was transferred to the Company just before the end of the first quarter of 2025, with monthly lease expense commencing in the second quarter of 2025. For the three- and six-month period ended July 31, 2025, expense related to this lease was approximately $500,000, which includes approximately $60,000 in interest expense.

The weighted average remaining lease term for the finance lease is 9.8 years as of July 31, 2025. A discount rate of 6.9% was deemed appropriate as an incremental borrowing rate for a 10-year term.

The following table is a summary of future minimum rentals on the lease at July 31, 2025 (amounts in thousands):

Years Ended January 31,	Minimum Rentals

Remainder of 2026	$	274
2027		469
2028		469
2029		469
2030		469
Thereafter		2,423
Total		4,573
Less: present value discount		1,251
Finance lease liabilities	$	3,322