Lakeland Industries (LAKE) 10-Q9 Jun 222023 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Apr. 30, 2022	Jun. 02, 2022
Cover [Abstract]
Entity Registrant Name	LAKELAND INDUSTRIES, INC.
Entity Central Index Key	0000798081
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Apr. 30, 2022
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		7,670,636
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-15535
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	13-3115216
Entity Interactive Data Current	Yes
Entity Address Address Line 1	1525 Perimeter Parkway
Entity Address Address Line 2	Suite 325
Entity Address City Or Town	Huntsville
Entity Address State Or Province	AL
Entity Address Postal Zip Code	35806
City Area Code	256
Local Phone Number	350-3873
Security 12b Title	Common Stock
Trading Symbol	LAKE
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Net sales	$ 27,278	$ 34,092
Cost of goods sold	16,222	19,313
Gross profit	11,056	14,779
Operating expenses	9,607	8,148
Operating profit	1,449	6,631
Other income (expense), net	(26)	(13)
Interest expense	(9)	(1)
Income before taxes	1,414	6,617
Income tax expense	285	1,615
Net income	$ 1,129	$ 5,002
Net income per common share:
Basic	$ 0.15	$ 0.63
Diluted	$ 0.14	$ 0.61
Weighted average common shares outstanding:
Basic	7,615,967	7,989,215
Diluted	7,798,198	8,143,805

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Net income	$ 1,129	$ 5,002
Other comprehensive income (loss):
Foreign currency translation adjustments	(760)	(55)
Comprehensive income	$ 369	$ 4,947

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Current assets
Cash and cash equivalents	$ 50,854	$ 52,719
Accounts receivable, net of allowance for doubtful accounts of $635 and $666 at April 30, 2022 and January 31, 2022, respectively	13,993	14,771
Inventories	49,614	47,711
Prepaid VAT and other taxes	1,653	1,675
Other current assets	4,342	3,770
Total current assets	120,456	120,646
Property and equipment, net	8,726	8,714
Operating leases right-of-use assets	5,002	5,296
Deferred tax assets	2,495	2,072
Other assets	1,393	1,361
Investments	4,568	2,704
Total assets	142,640	140,793
Current liabilities
Accounts payable	8,165	5,855
Accrued compensation and benefits	3,162	3,225
Other accrued expenses	1,479	1,372
Income tax payable	377	321
Current portion of operating lease liabilities	1,220	1,242
Total current liabilities	14,403	12,015
Long-term portion of operating lease liabilities	3,445	3,678
Total liabilities	17,848	15,693
Stockholders' equity
Preferred stock, $0.01 par; authorized 1,500,000 shares (none issued)	0	0
Common stock, $0.01 par; authorized 20,000,000 shares Issued 8,635,358 and 8,555,672 shares; outstanding 7,670,636 and 7,615,967 shares at April 30, 2022 and January 31, 2022, respectively	86	86
Treasury stock, at cost; 964,722 and 939,705 shares at April 30, 2022 and January 31, 2022, respectively	(14,612)	(14,206)
Additional paid-in capital	77,555	77,826
Retained earnings	64,021	62,892
Accumulated other comprehensive loss	(2,258)	(1,498)
Total stockholders' equity	124,792	125,100
Total liabilities and stockholders' equity	$ 142,640	$ 140,793

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 635	$ 666
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,635,358	8,555,672
Common stock, shares outstanding	7,670,636	7,615,967
Treasury stock, shares	964,722	939,705

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	Total	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Accumulated other comprehensive loss	Common Stock
Balance, Shares at Jan. 31, 2021		509,242				8,498,457
Balance, amount at Jan. 31, 2021	$ 121,751	$ (5,023)	$ 76,781	$ 51,520	$ (1,612)	$ 85
Net income	5,002	0	0	5,002	0	0
Other comprehensive income	(55)	0	0	0	(55)	$ 0
Restricted stock issued share						43,778
Restricted stock issued Amount	1	0	0	0	0	$ 1
Restricted Stock Plan	336	0	336	0	0	0
Return of shares in lieu of payroll withholding	(461)	0	(461)	0	0	0
Balance, amount at Apr. 30, 2021	126,574	$ (5,023)	76,656	56,522	(1,667)	$ 86
Balance, Shares at Apr. 30, 2021		509,242				8,542,235
Balance, Shares at Jan. 31, 2022		939,705				8,555,672
Balance, amount at Jan. 31, 2022	125,100	$ (14,206)	77,826	62,892	(1,498)	$ 86
Net income	1,129	0	0	1,129	0	0
Restricted Stock Plan	407	0	407	0	0	0
Return of shares in lieu of payroll withholding	(678)	0	(678)	0	0	0
Other comprehensive loss	(760)	$ 0	0	0	(760)	$ 0
Restricted stock issued, shares						79,686
Restricted stock issued, amount						$ 0
Treasury stock purchased, shares		25,017
Treasury stock purchased	(406)	$ (406)
Balance, amount at Apr. 30, 2022	$ 124,792	$ (14,612)	$ 77,555	$ 64,021	$ (2,258)	$ 86
Balance, Shares at Apr. 30, 2022		964,722				8,635,358

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Cash flows from operating activities:
Net income	$ 1,129	$ 5,002
Adjustments to reconcile net income to net cash provided by operating activities
Provision for (recovery of) doubtful accounts	(30)	173
Deferred income taxes	(424)	(43)
Depreciation and amortization	425	499
Stock based and restricted stock compensation	407	336
Loss on disposal of property and equipment	27	17
Non-cash operating lease expense	0	117
Equity in loss of equity investment	27	0
(Increase) decrease in operating assets
Accounts receivable	725	2,328
Inventories	(2,222)	(323)
Prepaid VAT and other taxes	23	(959)
Other assets	(670)	(634)
Increase (decrease) in operating liabilities
Accounts payable	2,316	(128)
Accrued expenses and other liabilities	143	880
Operating lease liabilities	35	(214)
Net cash provided by operating activities	1,911	8,319
Cash flows from investing activities:
Purchases of property and equipment	465	135
Investments	1,891	0
Net cash (used in) investing activities:	(2,356)	(135)
Cash flows from financing activities:
Purchase of treasury stock under stock repurchase program	(406)	0
Shares returned to pay employee taxes under restricted stock program	678	461
Net cash (used in) financing activities	(1,084)	(461)
Effect of exchange rate changes on cash and cash equivalents	(336)	3
Net increase (decrease) in cash and cash equivalents	(1,865)	7,726
Cash and cash equivalents at beginning of period	52,719	52,596
Cash and cash equivalents at end of period	50,854	60,322
Supplemental disclosure of cash flow information:
Cash paid for interest	9	1
Cash paid for taxes	1,098	1,152
Noncash investing and financing activities
Leased assets obtained in exchange for operating lease liabilities	$ 0	$ 268

Business

Business	3 Months Ended
Business	Apr. 30, 2022
Business
Business	1. Business Lakeland Industries, Inc. and Subsidiaries (“Lakeland,” the “Company,” “we,” “our” or “us”), a Delaware corporation organized in April 1986, manufacture and sell a comprehensive line of industrial protective clothing and accessories for the industrial and public protective clothing market. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a network of over 1,600 global safety and industrial supply distributors. Our authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, such as fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mixture of end users directly, and to industrial distributors depending on the particular country and market. Sales are made to more than 50 countries, the majority of which were into China, countries within the European Economic Community (“EEC”), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India and countries within Southeast Asia.

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Apr. 30, 2022
Basis of Presentation
Basis of Presentation	2. Basis of Presentation The condensed consolidated financial statements of the Company are unaudited. These condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the Company’s results. Intercompany accounts and transactions have been eliminated. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire fiscal year ending January 31, 2023, or for any future period. The January 31, 2022, Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Balance Sheet, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto as of January 31, 2022 and 2021, and for each of the two years in the period ended January 31, 2022, included in our most recent annual report on Form 10-K filed on April 21, 2022 In this Form 10-Q, (a) “FY” means fiscal year; thus for example, FY23 refers to the fiscal year ending January 31, 2023, (b) “Q” refers to quarter; thus, for example, Q1 FY23 refers to the first quarter of the fiscal year ending January 31, 2023, (c) “Balance Sheet” refers to the unaudited condensed consolidated balance sheet and (d) “Statement of Income” refers to the unaudited condensed consolidated statement of income.

Investments

Investments	3 Months Ended
Investments	Apr. 30, 2022
Basis of Presentation
Investments	3. Investments On October 18, 2021, the Company entered into an Investment Agreement (the “Investment Agreement”) with Inova Design Solutions Ltd, a private limited company incorporated under the laws of England and Wales and headquartered in the United Kingdom, doing business as Bodytrak ® On April 28, 2022, the Company, under the terms of the Investment Agreement, acquired an additional 381,679 Series A Shares of Bodytrak for £1,500,000 ($1.9 million). After completion of the additional investment, the Company owns 18.42% of Bodytrak’s share capital. The investment in Bodytrak is accounted for under the equity method given our board representation and the resulting ability to exercise significant influence. A substantial portion of our investment represents differences in our investment and our share of the underlying recognized net assets of Bodytrak. These differences are predominately attributable to non-amortizing intangible assets, including internally developed intellectual property, of Bodytrak. Bodytrak provides wearable monitoring solutions for customers in industrial health, safety, defense and first responder markets wanting to achieve better employee health and performance. Bodytrak’s solution is provided as a platform as a service (PaaS), delivering real-time data and cloud-based analytics, and hardware that includes a patented earpiece for physiological monitoring and audio communications. For the quarter ended April 30, 2022, the Company recognized a loss of $27,000 as the Company’s share of Bodytrak’s net loss. The loss is reflected in other income (expense), net in the consolidated statements of income.

Inventories

Inventories	3 Months Ended
Inventories	Apr. 30, 2022
Inventories
Inventories	4. Inventories Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost (on a first-in, first-out or moving average basis) or net realizable value. Inventories consist of the following (in $000s): April 30, 2022 January 31, 2022 Raw materials $ 20,758 $ 20,231 Work-in-process 829 626 Finished goods 31,434 29,910 Excess and obsolete adjustments (3,407 ) (3,056 ) $ 49,614 $ 47,711

LongTerm Debt

LongTerm Debt	3 Months Ended
LongTerm Debt	Apr. 30, 2022
LongTerm Debt
Long-Term Debt	5. Long-Term Debt Revolving Credit Facility On June 25, 2020, the Company entered into a Loan Agreement (the “Loan Agreement”) with Bank of America (“Lender”). The Loan Agreement provides the Company with a secured $12.5 million revolving credit facility, which includes a $5.0 million letter of credit sub-facility. The Company may request from time to time an increase in the revolving credit loan commitment of up to $5.0 million (for a total commitment of up to $17.5 million). Borrowing pursuant to the revolving credit facility is subject to a borrowing base amount calculated as (a) 80% of eligible accounts receivable, as defined, plus (b) 50% of the value of acceptable inventory, as defined, minus (c) certain reserves as the Lender may establish for the amount of estimated exposure, as reasonably determined by the Lender from time to time, under certain interest rate swap contracts. The borrowing base limitation only applies during periods when the Company’s quarterly funded debt to EBITDA ratio, as defined, exceeds 2.00 to 1.00. The credit facility will mature on June 25, 2025. On June 18, 2021, the Company entered into an Amendment No. 1 to Loan Agreement (the “Amendment”) with the Lender, which modifies certain terms of the Company’s existing Loan Agreement. The Amendment increases the credit limit under the Loan Agreement’s senior secured revolving credit facility from $12.5 million to $25.0 million. The Amendment also amends the covenant in the Loan Agreement that restricts acquisitions by the Company or its subsidiaries in order to allow, without the prior consent of the Lender, acquisitions of a business or its assets if there is no default under the Loan Agreement and the aggregate consideration does not exceed $7.5 million for any individual acquisition or $15.0 million on a cumulative basis for all such acquisitions. Other than the changes described above, the terms and conditions of the Loan Agreement remain in full force and effect. As of April 30, 2022, the Company had no borrowings outstanding on the letter of credit sub-facility and no borrowings outstanding under the revolving credit facility. Borrowings in UK There were no borrowings outstanding under the Company’s existing credit facility with HSBC Bank at April 30, 2022 and January 31, 2022. Amounts due the Company, under the facility with HSBC Invoice Finance (UK) Ltd., of $1.5 million and $1.2 million as of April 30, 2022, and January 31, 2022, respectively, are included in other current assets on the accompanying consolidated balance sheets.

Concentration of Risk

Concentration of Risk	3 Months Ended
Concentration of Risk	Apr. 30, 2022
Concentration of Risk
Concentration of Risk	6. Concentration of Risk Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents, and trade receivables. Concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company’s customer base and their dispersion across geographic areas principally within the United States. The Company routinely addresses the financial strength of its customers and, as a consequence, believes that its receivable credit risk exposure is limited. The Company does not require customers to post collateral. The Company’s foreign financial depositories are Bank of America; China Construction Bank; Bank of China; China Industrial and Commercial Bank; HSBC (UK); Rural Credit Cooperative of Shandong; Postal Savings Bank of China; Punjab National Bank; HSBC in India, Argentina and UK; Raymond James in Argentina; TD Canada Trust; Banco Itaú S.A., Banco Credito Inversione in Chile; Banco Mercantil Del Norte SA in Mexico; ZAO KB Citibank Moscow in Russia, and JSC Bank Centercredit in Kazakhstan. The Company monitors its financial depositories by their credit rating which varies by country. In addition, cash balances in banks in the United States of America are insured by the Federal Deposit Insurance Corporation subject to certain limitations. There was approximately $9.0 million total included in the U.S. bank accounts and approximately $41.8 million total in foreign bank accounts as of April 30, 2022, of which $50.2 million was uninsured. Major Customer No customer accounted for more than 10% of net sales during the three months ended April 30, 2022 and 2021. Major Supplier No vendor accounted for more than 10% of purchases during the three months ended April 30, 2022 and 2021.

Stockholders Equity

Stockholders Equity	3 Months Ended
Stockholders Equity	Apr. 30, 2022
Stockholders Equity
Stockholders' Equity	7. Stockholders’ Equity On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the “2017 Plan”). The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”), except that with respect to all non-employee directors, the Committee shall be deemed to include the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units, or stock appreciation rights (“SARs”). On June 16, 2021, the stockholders of the Company approved Amendment No. 1 (the “Amendment”) to the 2017 Plan. The Amendment increases the number of shares of common stock, par value $0.01 per share, of the Company reserved for issuance under the Plan by 480,000 shares. An aggregate of 840,000 shares of the Company’s common stock are authorized for issuance under the 2017 Plan, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan. The Company recognized total stock-based compensation costs, which are reflected in operating expenses (in 000’s): Three Months Ended April 30, 2022 2021 2017 Plan: Total equity programs $ 407 $ 336 Total income tax expense recognized for equity programs $ 85 $ 71 Restricted Stock and Restricted Stock Units Under the 2017 Plan, as described above, the Company awarded performance-based and service-based shares of restricted stock and restricted stock units to eligible employees and directors. The following table summarizes the activity under the 2017 Plan for the three months ended April 30, 2022 and April 30, 2021. This table reflects the amount of awards granted at the number of shares that would be vested if the Company were to achieve the maximum performance level under the December 2019, April 2020, June 2021 and April 2022 grants. Performance- Based Service- Based Total Weighted Average Grant Date Fair Value Outstanding at January 31, 2022 232,838 14,970 247,808 $ 20.89 Awarded 26,794 26,793 53,587 $ 18.75 Vested (119,164 ) - (119,164 ) Forfeited - - - Outstanding at April 30, 2022 140,468 41,763 182,231 $ 17.63 Performance- Based Service- Based Total Weighted Average Grant Date Fair Value Outstanding at January 31, 2021 245,210 30,930 276,140 $ 13.24 Awarded - - - Vested (58,574 ) - (58,574 ) Forfeited - - - Outstanding at April 30, 2021 186,636 30,930 217,566 $ 12.13 The actual number of shares of common stock of the Company, if any, to be earned by the award recipients is determined over a three year performance measurement period based on measures that include Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) margin, revenue growth, and free cash flow for the April 2020 and June 2021 grants and revenue growth and EBITDA margin for the April 2022 grants. The performance targets have been set for each of the Minimum, Target, and Maximum levels. The actual performance amount achieved is determined by the Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence, at the discretion of the Committee. The compensation cost is based on the fair value at the grant date, is recognized over the requisite performance/service period using the straight-line method, and is periodically adjusted for the probable number of shares to be awarded. As of April 30, 2022, unrecognized stock-based compensation expense totaled $2.0 million pursuant to the 2017 Plan based on outstanding awards under the 2017 Plan. This expense is expected to be recognized over approximately two years. Stock Repurchase Program On February 17, 2021, the Company’s Board of Directors approved a stock repurchase program under which the Company may On April 7, 2022, the Board of Directors authorized a new stock repurchase program under which the Company may repurchase up to $5 million of its outstanding common stock (the “New Share Repurchase Program”). The New Share Repurchase Program will become effective upon the completion of the Existing Share Repurchase Program, which has approximately $400,000 remaining for repurchases as of April 30, 2022. The New Share Repurchase Program has no expiration date but may be terminated by the Board of Directors at any time. Shares repurchased in Q1 FY23 totaled 25,017 shares at a cost of $0.4 million leaving approximately $5.4 million remaining under the stock repurchase programs at April 30, 2022.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Apr. 30, 2022
Income Taxes
Income Taxes	8. Income Taxes The Company’s effective tax rate for the first quarter of FY23 was 20.2%. The Company recorded deferred tax benefits of $0.2 million related to accruals for China social taxes based on our evaluation of the deductibility of these items. Excluding this discrete benefit the effective rate was 32.9% which differs from the U.S. federal statutory rate of 21% primarily due to rate differentials in foreign tax jurisdictions and Global Intangible Low-Taxed Income (“GILTI”). The Company’s effective tax rate for the first quarter of FY22 was 24.4%, which differs from the U.S. statutory rate of 21% primarily due to rate differentials in foreign tax jurisdictions and GILTI. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. The valuation allowance was $3.4 million and $3.2 million at April 30, 2022 and January 31, 2022, respectively.

Net Income Per Share

Net Income Per Share	3 Months Ended
Net Income Per Share	Apr. 30, 2022
Net income per common share:
Net Income Per Share	9. Net Income Per Share The following table sets forth the computation of basic and diluted net income per share as follows (in $000s except per share amounts): Three Months Ended April 30, 2022 2021 Numerator - Net income $ 1,129 $ 5,002 Denominator for basic net income per share (weighted-average shares which exclude shares in the treasury, 964,722 and 509,242 at April 30, 2022 and 2021, respectively 7,615,967 7,989,215 Effect of dilutive securities from equity plan 182,231 154,590 Denominator for diluted net income per share (adjusted weighted average shares) 7,798,198 8,143,805 Basic net income per share $ 0.15 $ 0.63 Diluted net income per share $ 0.14 $ 0.61

Contingencies

Contingencies	3 Months Ended
Contingencies	Apr. 30, 2022
Contingencies
Contingencies	10. Contingencies Certain conditions may exist as of the date the condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been or is probable of being incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. General litigation contingencies The Company is involved in various litigation proceedings arising during the normal course of business which, in the opinion of the management of the Company, will not have a material effect on the Company’s financial position, results of operations or cash flows; however, there can be no assurance as to the ultimate outcome of these matters. As of April 30, 2022, to the best of the Company’s knowledge, there were no significant outstanding claims or litigation.

Segment Reporting

Segment Reporting	3 Months Ended
Segment Reporting	Apr. 30, 2022
Segment Reporting
Segment Reporting	11. Segment Reporting We manage our operations by evaluating each of our geographic locations. Our US operations include a facility in Alabama (primarily the distribution to customers of the bulk of our products and the light manufacturing of our chemical, wovens, reflective, and fire products). The Company also maintains one manufacturing company in China (primarily disposable and chemical suit production), a manufacturing facility in Mexico (primarily disposable, reflective, fire and chemical suit production), a manufacturing facility in Vietnam (primarily disposable production) and a small manufacturing facility in India. Our China facilities produce the majority of the Company’s products and China generates a significant portion of the Company’s international revenues. We evaluate the performance of these entities based on operating profit, which is defined as income before income taxes, interest expense and other income and expenses. We have sales forces in the USA, Canada, Mexico, Europe, Latin America, India, Russia, Kazakhstan and China, which sell and distribute products shipped from the United States, Mexico, India or China. The table below represents information about reported segments for the three month periods noted therein: Three Months Ended April 30, (in millions of dollars) 2022 2021 Net Sales: USA Operations (including Corporate) $ 12.24 $ 16.41 Other foreign 2.20 2.46 Europe (UK) 1.98 4.40 Mexico 1.24 1.81 Asia 14.66 18.19 Canada 2.28 1.78 Latin America 1.90 3.56 Less intersegment sales (9.22 ) (14.51 ) Consolidated sales $ 27.28 $ 34.10 External Sales: USA Operations (including Corporate) $ 11.23 $ 15.70 Other foreign 1.81 1.58 Europe (UK) 1.98 4.40 Mexico 0.84 1.55 Asia 7.24 5.64 Canada 2.28 1.78 Latin America 1.90 3.45 Consolidated external sales $ 27.28 $ 34.10 Intersegment Sales: USA Operations (including Corporate) $ 1.01 $ 0.71 Other foreign 0.39 0.88 Mexico 0.40 0.26 Asia 7.42 12.55 Latin America - 0.11 Consolidated intersegment sales $ 9.22 $ 14.51 Three Months Ended April 30, (in millions of dollars) 2022 2021 Operating Profit (Loss): USA Operations (including Corporate) $ (2.06) $ 0.27 Other foreign 0.21 0.57 Europe (UK) (0.26 ) 1.60 Mexico (0.54 ) 0.05 Asia 2.56 3.48 Canada 0.63 0.47 Latin America 0.30 0.90 Intersegment profit (loss) 0.61 (0.71 ) Consolidated operating profit $ 1.45 $ 6.63 April 30, 2022 January 31, 2022 (in millions of dollars) Total Assets: USA Operations (including Corporate) $ 52.34 $ 53.36 Other foreign 9.20 8.92 Europe (UK) 8.01 8.79 Mexico 4.65 5.06 Asia 54.84 52.26 Canada 6.15 4.99 Latin America 7.45 7.41 Consolidated assets $ 142.64 $ 140.79 The table below presents external sales by product line: Three Months Ended April 30, (in millions of dollars) 2022 2021 External Sales by product lines: Disposables $ 14.50 $ 19.70 Chemical 5.11 8.26 Fire 2.69 1.90 Gloves 0.54 0.45 High Visibility 1.60 1.30 High Performance Wear 1.37 0.86 Wovens 1.47 1.63 Consolidated external sales $ 27.28 $ 34.10

Inventories (Tables)

Inventories (Tables)	3 Months Ended
Inventories (Tables)	Apr. 30, 2022
Inventories
Schedule of inventory	April 30, 2022 January 31, 2022 Raw materials $ 20,758 $ 20,231 Work-in-process 829 626 Finished goods 31,434 29,910 Excess and obsolete adjustments (3,407 ) (3,056 ) $ 49,614 $ 47,711

Stockholders Equity (Tables)

Stockholders Equity (Tables)	3 Months Ended
Stockholders Equity (Tables)	Apr. 30, 2022
Stockholders Equity
Schedule of share-based compensation, restricted stock units award activity	Three Months Ended April 30, 2022 2021 2017 Plan: Total equity programs $ 407 $ 336 Total income tax expense recognized for equity programs $ 85 $ 71
Schedule of stock option activity	Performance- Based Service- Based Total Weighted Average Grant Date Fair Value Outstanding at January 31, 2022 232,838 14,970 247,808 $ 20.89 Awarded 26,794 26,793 53,587 $ 18.75 Vested (119,164 ) - (119,164 ) Forfeited - - - Outstanding at April 30, 2022 140,468 41,763 182,231 $ 17.63 Performance- Based Service- Based Total Weighted Average Grant Date Fair Value Outstanding at January 31, 2021 245,210 30,930 276,140 $ 13.24 Awarded - - - Vested (58,574 ) - (58,574 ) Forfeited - - - Outstanding at April 30, 2021 186,636 30,930 217,566 $ 12.13

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
Net Income Per Share (Tables)	Apr. 30, 2022
Net income per common share:
Schedule of earnings per share, basic and diluted	Three Months Ended April 30, 2022 2021 Numerator - Net income $ 1,129 $ 5,002 Denominator for basic net income per share (weighted-average shares which exclude shares in the treasury, 964,722 and 509,242 at April 30, 2022 and 2021, respectively 7,615,967 7,989,215 Effect of dilutive securities from equity plan 182,231 154,590 Denominator for diluted net income per share (adjusted weighted average shares) 7,798,198 8,143,805 Basic net income per share $ 0.15 $ 0.63 Diluted net income per share $ 0.14 $ 0.61

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
Segment Reporting (Tables)	Apr. 30, 2022
Segment Reporting
Segment information	Three Months Ended April 30, (in millions of dollars) 2022 2021 Net Sales: USA Operations (including Corporate) $ 12.24 $ 16.41 Other foreign 2.20 2.46 Europe (UK) 1.98 4.40 Mexico 1.24 1.81 Asia 14.66 18.19 Canada 2.28 1.78 Latin America 1.90 3.56 Less intersegment sales (9.22 ) (14.51 ) Consolidated sales $ 27.28 $ 34.10 External Sales: USA Operations (including Corporate) $ 11.23 $ 15.70 Other foreign 1.81 1.58 Europe (UK) 1.98 4.40 Mexico 0.84 1.55 Asia 7.24 5.64 Canada 2.28 1.78 Latin America 1.90 3.45 Consolidated external sales $ 27.28 $ 34.10 Intersegment Sales: USA Operations (including Corporate) $ 1.01 $ 0.71 Other foreign 0.39 0.88 Mexico 0.40 0.26 Asia 7.42 12.55 Latin America - 0.11 Consolidated intersegment sales $ 9.22 $ 14.51 Three Months Ended April 30, (in millions of dollars) 2022 2021 Operating Profit (Loss): USA Operations (including Corporate) $ (2.06) $ 0.27 Other foreign 0.21 0.57 Europe (UK) (0.26 ) 1.60 Mexico (0.54 ) 0.05 Asia 2.56 3.48 Canada 0.63 0.47 Latin America 0.30 0.90 Intersegment profit (loss) 0.61 (0.71 ) Consolidated operating profit $ 1.45 $ 6.63 April 30, 2022 January 31, 2022 (in millions of dollars) Total Assets: USA Operations (including Corporate) $ 52.34 $ 53.36 Other foreign 9.20 8.92 Europe (UK) 8.01 8.79 Mexico 4.65 5.06 Asia 54.84 52.26 Canada 6.15 4.99 Latin America 7.45 7.41 Consolidated assets $ 142.64 $ 140.79
Schedule of revenue from external customers geographic areas	Three Months Ended April 30, (in millions of dollars) 2022 2021 External Sales by product lines: Disposables $ 14.50 $ 19.70 Chemical 5.11 8.26 Fire 2.69 1.90 Gloves 0.54 0.45 High Visibility 1.60 1.30 High Performance Wear 1.37 0.86 Wovens 1.47 1.63 Consolidated external sales $ 27.28 $ 34.10

Investments (Details Narrative)

Investments (Details Narrative) - USD ($) $ in Millions	3 Months Ended
Investments (Details Narrative) - USD ($) $ in Millions	Apr. 30, 2022	Jan. 31, 2022
Convertible series A shares issued	0	0
Investment Agreement [Member] \| Bodytrak's [Member]
Ownership percentage	18.42%
Payment of related party shares exchanged	$ 2.8
Current exchange rates	$ 1.9
Percentages of total share capital	11.43%
Additional shares of Series A	38,167,900,000
Series A shares acquired	38,167,900,000
Recognized loss	$ 2,700
Convertible series A shares issued	50,890,500,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Inventories
Raw materials	$ 20,758	$ 20,231
Work-in-process	829	626
Finished goods	31,434	29,910
Excess and obsolete reserves	(3,407)	(3,056)
Inventories, net	$ 49,614	$ 47,711

LongTerm Debt (Details Narrativ

LongTerm Debt (Details Narrative) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
LongTerm Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 18, 2021	Jun. 25, 2020	Apr. 30, 2022	Jan. 31, 2022
HSBC Bank [Member]
Due amount			$ 1,500	$ 120
Loan Agreement \| Bank Of America
Revolving credit facility	$ 12,500	$ 12,500
Warranties to the Lender in the Loan Agreement		The Company may request from time to time an increase in the revolving credit loan commitment of up to $5.0 million (for a total commitment of up to $17.5 million). Borrowing pursuant to the revolving credit facility is subject to a borrowing base amount calculated as (a) 80% of eligible accounts receivable, as defined, plus (b) 50% of the value of acceptable inventory, as defined, minus (c) certain reserves as the Lender may establish for the amount of estimated exposure, as reasonably determined by the Lender from time to time, under certain interest rate swap contracts
Credit sub facility	25,000		$ 5,000
Aggregate consideration	7,500
Individual acquisitions amount	$ 15,000
Credit facility mature date			Jun. 25, 2025

Concentration of Risk (Details

Concentration of Risk (Details Narrative) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Cash balances in banks in the United States of America	$ 9
Cash balances in foreign bank accounts	41.8
Uninsured amount	$ 50.2
Major Customer [Member]
Concentration risk of net sales	10.00%	10.00%
Major Supplier [Member]
Concentration risk of net sales	10.00%	10.00%

Stockholders Equity (Details)

Stockholders Equity (Details) - 2017 Plan [Member] - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Total restricted stock and stock option programs	$ 407	$ 336
Total income tax benefit recognized for stock-based compensation arrangements	$ 85	$ 71

Stockholders Equity (Details 1)

Stockholders Equity (Details 1) - $ / shares	3 Months Ended
Stockholders Equity (Details 1) - $ / shares	Apr. 30, 2022	Apr. 30, 2021
Total [Member]
Outstanding at January 31	247,808	276,140
Vested	(119,164)	(58,574)
Awarded	53,587
Outstanding at April 30	182,231	217,566
Weighted Average Grant Date Fair Value [Member]
Outstanding at January 31	$ 20.89	$ 13.24
Weighted average awarded rate	18.75
Outstanding at April 30	$ 17.63	$ 12.13
Performance Based [Member]
Outstanding at January 31	232,838	245,210
Vested	(119,164)	(58,574)
Awarded	26,794
Outstanding at April 30	140,468	186,636
Service Based [Member]
Outstanding at January 31	14,970	30,930
Awarded	26,793
Outstanding at April 30	41,763	30,930

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Apr. 07, 2022	Jul. 06, 2021	Jun. 16, 2021	Feb. 17, 2021	Apr. 30, 2022	Jan. 31, 2022
Common stock, shares authorized					20,000,000	20,000,000
2017 Plan [Member]
Common stock, shares authorized					840,000
Stock Repurchase Program [Member]
Remaining value of repurchase of outstanding common stock				$ 5,000	$ 5,400
Price per share			$ 0.01
Additional shares of common oitstanding		5,000,000
Repurchase of outstanding common stock	5,000,000		480,000		25,017
Repurchase of outstanding common stock, amount	$ 400,000,000				$ 400
Other Compensation Plans/Programs [Member]
Unrecognized stock-based compensation expense					$ 200

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Change in valuation allowance	$ 3,400		$ 3,200
Deferred tax benefits	(424)	$ (43)
China Social Taxes [Member]
Deferred tax benefits	$ 20
Effective tax rates	32.90%
2022 Plan [Member]
Federal tax statutory rate	24.40%
Tax rate	21.00%
2023 Plan [Member]
Federal tax statutory rate	20.20%
Tax rate	21.00%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Net income per common share:
Net income	$ 1,129	$ 5,002
Denominator for basic net income per share (weighted-average shares which exclude shares in the treasury, 964,722 and 509,242 at April 30, 2022 and 2021, respectively	7,615,967	7,989,215
Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options	182,231	154,590
Denominator for diluted net income per share (adjusted weighted average shares)	7,798,198	8,143,805
Basic net income per share	$ 0.15	$ 0.63
Diluted net income per share	$ 0.14	$ 0.61

Segment Reporting (Details )

Segment Reporting (Details ) - USD ($)	3 Months Ended
Segment Reporting (Details ) - USD ($)	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
External sales	$ 27,280,000	$ 34,100,000
Operating profit	1,449,000	6,631,000
Other Foreign [Member]
Net sales	2,200,000	2,460,000
External sales	1,810,000	1,580,000
Intersegment sales	390,000	880,000
Operating profit	210,000	570,000
Total assets less intersegment	9,200,000		$ 8,920,000
Europe (UK) [Member]
Net sales	1,980,000	4,400,000
External sales	1,980,000	4,400,000
Operating profit	(260,000)	1,600,000
Total assets less intersegment	8,010,000		8,790,000
Asia [Member]
Net sales	14,660,000	18,190,000
External sales	7,240,000	5,640,000
Intersegment sales	7,420,000	12,550,000
Operating profit	2,560,000	3,480,000
Total assets less intersegment	54,840,000		52,260,000
Latin America [Member]
Net sales	1,900,000	3,560,000
External sales	1,900,000	3,450,000
Intersegment sales	0	110,000
Operating profit	300,000	900,000
Total assets less intersegment	7,450,000		7,410,000
Intersegment [Member]
Net sales	(9,220,000)	(14,510,000)
Operating profit	610,000	(710,000)
Canada [Member]
Net sales	2,280,000	1,780,000
External sales	2,280,000	1,780,000
Operating profit	630,000	470,000
Total assets less intersegment	6,150,000		4,990,000
Mexico [Member]
Net sales	1,240,000	1,810,000
External sales	840,000	1,550,000
Intersegment sales	400,000	260,000
Operating profit	(540,000)	50,000
Total assets less intersegment	4,650,000		5,060,000
USA [Member]
Net sales	12,240,000	16,410,000
External sales	11,230,000	15,700,000
Intersegment sales	1,010,000	710,000
Operating profit	(2,060,000)	270,000
Total assets less intersegment	52,340,000		53,360,000
Total [Member]
Net sales	27,280,000	34,100,000
External sales	27,280,000	34,100,000
Intersegment sales	9,220,000	14,510,000
Operating profit	1,450,000	$ 6,630,000
Total assets less intersegment	$ 142,640,000		$ 140,790,000

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended
Segment Reporting (Details 1) - USD ($) $ in Thousands	Apr. 30, 2022	Apr. 30, 2021
External sales	$ 27,280	$ 34,100
Fire [Member]
External sales	2,690	1,900
Disposables [Member]
External sales	14,500	19,700
Gloves [Member]
External sales	540	450
High Visibility [Member]
External sales	1,600	1,300
High Performance Wear [Member]
External sales	1,370	860
Wovens [Member]
External sales	1,470	1,630
Chemical [Member]
External sales	$ 5,110	$ 8,260