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Note 8 - Contingent Liability | 9 Months Ended
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Oct. 31, 2021
Notes to Financial Statements |
Contingencies Disclosure [Text Block] | 8. Contingent Liability Legal Proceedings From time to time, the Company may be subject to pending or threatened legal actions and proceedings, including those that arise in the ordinary course of its business, which may include employment matters, breach of contract disputes and stockholder litigation. Such actions and proceedings are subject to many uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, when the Company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, as of the date hereof, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position or cash flows. Inova Geophysical, Inc. (“Inova”) has claimed they are entitled to up to approximately $1.0 million of the proceeds from the sale of certain equipment by our subsidiary, Mitcham Europe, Ltd. (“MEL”), pursuant to a Cooperation and Representation Agreement (the “Agreement”) between Inova and MEL. Further, they have claimed a purchase money security interest in the subject equipment. We believe these claims are totally without merit. On October 2021, we filed suit against Inova seeking a declaratory judgment, that per the terms of the Agreement Inova has no right to any proceeds from the sale of the subject equipment and that Inova has no interest in such equipment or proceeds from any sale. We further seek payment from Inova for commissions due to MEL pursuant to the Agreement as well as reimbursement of legal costs. This action is currently pending in the District Court of Fort Bend County, Texas.

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- Definition The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=2127197 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2127163 + Details
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