Lakeland Industries (LAKE) 10-K10 Apr 242024 FY Annual reportFinancial data

Company Profile

Cover

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Jan. 31, 2024	Apr. 10, 2024	Jul. 31, 2023
Cover [Abstract]
Entity Registrant Name	LAKELAND INDUSTRIES, INC.
Entity Central Index Key	0000798081
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--01-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jan. 31, 2024
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		7,371,730
Entity Public Float			$ 118.8
Document Annual Report	true
Document Transition Report	false
Document Fin Stmt Error Correction Flag	false
Entity File Number	0-15535
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	13-3115216
Entity Address Address Line 1	1525 Perimeter Parkway
Entity Address City Or Town	Suite 325 Huntsville
Entity Address State Or Province	AL
Entity Address Postal Zip Code	35806
City Area Code	256
Icfr Auditor Attestation Flag	true
Auditor Name	Deloitte & Touche LLP
Auditor Location	Memphis, Tennessee
Auditor Firm Id	34
Local Phone Number	350-3873
Security 12b Title	Common Stock
Trading Symbol	LAKE
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 124,688	$ 112,846
Cost of goods sold	73,496	66,997
Gross profit	51,192	45,849
Operating expenses	45,200	40,308
Operating profit	5,993	5,541
Other income (expense), net	3,415	(33)
Interest expense	(52)	(37)
Income before taxes	9,356	5,471
Income tax expense	3,930	3,598
Net income	$ 5,425	$ 1,873
Net income per common share:
Basic	$ 0.74	$ 0.25
Diluted	$ 0.72	$ 0.24
Weighted average common shares outstanding:
Basic	7,352,356	7,562,187
Diluted	7,539,705	7,737,963

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 5,425	$ 1,873
Other comprehensive income:
Foreign currency translation adjustments	(1,669)	(2,193)
Comprehensive income (loss)	$ 3,756	$ (320)

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Current assets
Cash and cash equivalents	$ 25,222	$ 24,639
Accounts receivable, net of allowance for doubtful accounts of $857 and $800 at January 31, 2024 and 2023, respectively	19,169	17,296
Inventories	51,250	58,176
Prepaid VAT and other taxes	2,753	1,963
Income tax receivable and other current assets	3,111	3,517
Total current assets	101,505	105,591
Property and equipment, net	10,685	9,140
Operating leases right-of-use assets	10,969	5,472
Deferred tax assets	3,097	2,764
Other assets	110	100
Goodwill	13,669	8,473
Intangible assets, net	6,830	6,042
Equity investments	4,719	5,354
Convertible debt investments	2,161	0
Total assets	153,745	142,936
Current liabilities
Accounts payable	7,378	6,558
Accrued compensation and benefits	3,922	2,522
Other accrued expenses	2,487	4,068
Income tax payable	1,454	609
Short-term borrowings	298	405
Accrued earnout agreement	643	3,182
Current portion of operating lease liability	2,164	1,253
Total current liabilities	18,346	18,597
Deferred income taxes	2,097	769
Loans payable - long term	731	0
Long-term portion of operating lease liability	9,121	3,580
Total liabilities	30,294	22,946
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 8,722,965 and 8,655,699; outstanding 7,364,757 and 7,325,005 at January 31, 2024 and 2023, respectively	87	87
Treasury stock, at cost; 1,358,208 and 1,330,694 shares at January 31, 2024 and 2023, respectively	(19,979)	(19,646)
Additional paid-in capital	79,420	78,475
Retained earnings	69,282	64,765
Accumulated other comprehensive loss	(5,360)	(3,691)
Total stockholders' equity	123,450	119,990
Total liabilities and stockholders' equity	$ 153,745	$ 142,936

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jan. 31, 2024	Jan. 31, 2023
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 857	$ 800
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	8,722,965	8,655,699
Common stock, shares outstanding	7,364,757	7,325,005
Treasury stock, shares	1,358,208	1,330,694

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated other comprehensive loss
Balance, shares at Jan. 31, 2022		8,555,672	939,705
Balance, amount at Jan. 31, 2022	$ 125,100	$ 86	$ (14,206)	$ 77,826	$ 62,892	$ (1,498)
Net Income	1,873	0	0	0	1,873	0
Other comprehensive loss	(2,193)	$ 0	0	0	0	(2,193)
Restricted stock issued, shares		100,027,000
Restricted stock issued, amount	1	$ 1	0	0	0	0
Restricted stock plan	1,491	0	0	1,491	0	0
Return of shares in lieu of payroll tax withholding	(842)	0	$ 0	(842)	0	0
Treasury stock purchased, shares			(390,989,000)
Treasury stock purchased, amount	(5,440)	$ 0	$ (5,440)	0	0	0
Balance, shares at Jan. 31, 2023		8,655,699	1,330,694
Balance, amount at Jan. 31, 2023	119,990	$ 87	$ (19,646)	78,475	64,765	(3,691)
Net Income	5,425	$ 0	0	0	5,425	0
Restricted stock issued, shares		67,266,000
Restricted stock issued, amount	0	$ 0	0	0	0	0
Restricted stock plan	1,365	0	0	1,365	0	0
Return of shares in lieu of payroll tax withholding	(420)	0	$ 0	(420)	0	0
Treasury stock purchased, shares			(27,514,000)
Treasury stock purchased, amount	(333)	0	$ (333)	0	0	0
Dividends paid	908	0	0	0	908	0
Other comprehensive income	(1,669)	$ 0	$ 0	0	0	(1,669)
Balance, shares at Jan. 31, 2024		8,722,965	1,358,208
Balance, amount at Jan. 31, 2024	$ 123,450	$ 87	$ (19,979)	$ 79,420	$ 69,282	$ (5,360)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Cash flows from operating activities:
Net income	$ 5,425	$ 1,873
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Provision for (recovery of) doubtful accounts	57	134
Deferred income taxes	(818)	75
Depreciation and amortization	2,111	1,505
Stock based and restricted stock compensation	1,365	1,491
(Gain) loss on disposal of property and equipment	(3,764)	(6)
Equity in (earnings) loss of equity investment	629	411
Revaluation of earnout consideration	(2,538)	0
(Increase) decrease in operating assets:
Accounts receivable	(853)	(2,278)
Inventories	7,738	(9,710)
Prepaid VAT and other taxes	(789)	(260)
Other current assets	(15)	1,478
Increase (decrease) in operating liabilities:
Accounts payable	417	36
Accrued expenses and other liabilities	982	69
Operating lease liabilities	955	(269)
Net cash provided by (used in) operating activities	10,912	(5,451)
Cash flows from investing activities:
Purchases of property and equipment	(2,069)	(1,985)
Proceeds from sale of fixed assets	4,559	0
Acquisition, net of cash acquired	(5,452)	(9,722)
Investments	(2,154)	(3,061)
Net cash used in investing activities	(5,116)	(14,768)
Cash flows from financing activities
Short term borrowings	5,664	(405)
Short term borrowings - repayments	(7,455)	0
Dividends paid	(908)	0
Purchase of Treasury Stock under stock repurchase program	(333)	(5,439)
Shares returned to pay employee taxes under restricted stock program	(420)	(842)
Net cash used in financing activities	(3,452)	(5,876)
Effect of exchange rate changes on cash and cash equivalents	(1,761)	(1,985)
Net increase (decrease) in cash and cash equivalents	583	(28,080)
Cash and cash equivalents at beginning of year	24,639	52,719
Cash and cash equivalents at end of year	25,222	24,639
Cash paid for interest	63	37
Cash paid for taxes	2,169	3,151
Noncash investing and financing activities
Leased assets obtained in exchange for operating lease liabilities	$ 6,110	$ 1,148

BUSINESS AND SUMMARY OF SIGNIFI

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jan. 31, 2024
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 2,000 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, Middle East and countries within Southeast Asia. For purposes of this Form 10-K, FY refers to a fiscal year ended January 31; for example, FY24 refers to the fiscal year ended January 31, 2024. Basis of Presentation The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). We have reclassified certain prior year amounts to conform to current year presentation. The following is a description of the Company’s significant accounting policies. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that events could occur during the upcoming year that could change such estimates. Cash and Cash Equivalents The Company considers highly liquid temporary cash investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist of money market funds. Accounts Receivable, Net . 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. Adjustments are recorded for slow-moving, obsolete or unusable inventory. We assess our inventory for estimated obsolescence or unmarketable inventory and write down the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future sales and supply on hand, if necessary. If actual market conditions are less favorable than those projected by management, additional inventory adjustments may be required. Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives on a straight-line basis. Leasehold improvements and leasehold costs are amortized over the term of the lease or service lives of the improvements, whichever is shorter. The costs of additions and improvements that substantially extend the useful life of a particular asset are capitalized. Repair and maintenance costs are charged to expense. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the account, and the gain or loss on disposition is reflected in operating income. Assets held for sale are measured at the lower of carrying value or fair value less cost to sell. Gains or losses are recognized for any subsequent changes to fair value less cost to sell. However, gains are limited to cumulative losses previously recognized. Assets classified as held for sale are not depreciated. Equity Method Investments Investments in which the Company can exercise significant influence, but do not control, are accounted for using the equity method and are presented on the consolidated balance sheets. The Company’s share of the net earnings or losses of the investee is presented within the consolidated statements of operations as other income (expense). The Company evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company's carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the investee. If the decline in fair value is deemed to be other than temporary, the security is written down to fair value. In situations where the fair value of an investment is not evident due to a lack of a public market price or other factors, the Company estimates fair value based on a discounted cash flow model and a market-based approach using inputs which include expected cash flows and a discount rate representative of the risks within the underlying business and forecasts to arrive at the estimated fair value of such investment. Business combinations In accordance with the accounting guidance for business combinations, the Company uses the acquisition method of accounting to allocate costs of acquired businesses to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition. The excess of the purchase price over the estimated fair value of assets and liabilities is recorded as goodwill. Assigning fair market values to the assets acquired and liabilities assumed at the date of acquisition requires knowledge of current market values and the values of assets in use and often requires the application of judgment regarding estimates and assumptions. While the ultimate responsibility resides with management for material acquisitions, we retain the services of certified valuation specialists to assist with assigning estimated values to certain acquired assets and assumed liabilities, including intangible assets, tangible long-lived assets, and contingent consideration. Acquired intangible assets, excluding goodwill, are valued using certain discounted cash flow methodologies based on future cash flows specific to the type of intangible asset purchased. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, discount rates, attrition rates and working capital changes. If the contingent consideration is deemed significant or absent an agreed-upon payout amount, the initial measurement of contingent consideration and the corresponding liability is evaluated using the Monte Carlo Method. For this valuation method, management develops projections during the contingent consideration period utilizing various potential pay-out scenarios. Probabilities are applied to each potential scenario, and the resulting values are discounted using a rate that considers the weighted average cost of capital as well as a specific risk premium associated with the riskiness of the contingent consideration itself, the related projections, and the overall business. Goodwill and Other Intangible Assets Intangible assets with a finite useful life are amortized on a straight-line basis over their useful lives. Indefinite lived intangible assets are assessed for possible impairment annually on November 1st or whenever circumstances change such that the recorded value of the asset may not be recoverable. All goodwill is assigned to and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Goodwill is not amortized, but evaluated for impairment at least annually or whenever events or changes in circumstance indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company may perform either a qualitative assessment of potential impairment or proceed directly to a quantitative assessment of potential impairment. If the Company chooses not to perform a qualitative assessment, or if it chooses to perform a qualitative assessment but is unable to conclude that no impairment has occurred qualitatively, then the Company will perform a quantitative assessment. A quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. The Company estimates the fair value of the reporting unit with which the goodwill is associated and compares it to the carrying value. If the estimated fair value of a reporting unit is less than its carrying value, an impairment charge is recognized for the excess of the reporting unit's carrying value over its fair value. Fair value is measured using on the discounted cash flow method and relative market-based approaches. There has been no impairment of our goodwill during the years ended January 31, 2024 and 2023. Revenue Recognition Substantially all of the Company’s revenue is derived from product sales, which consist of sales of the Company’s personal protective wear products to distributors. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within 30 to 90 days of the invoice date, and the contracts do not have significant financing components. The Company elected to account for shipping and handling activities as a fulfillment cost rather than a separate performance obligation. Shipping and handling costs associated with outbound freight are included in operating expenses, and for FY24 and FY23 aggregated approximately $3.4 million and $3.2 million, respectively. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. The transaction price includes estimates of variable consideration related to rebates, allowances, and discounts that are reductions in revenue. All estimates are based on the Company's historical experience, anticipated performance, and the Company's best judgment at the time the estimate is made. Estimates for variable consideration are reassessed each reporting period and are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur upon resolution of uncertainty associated with the variable consideration. All the Company’s contracts have a single performance obligation satisfied at a point in time, and the transaction price is stated in the contract, usually as quantity times price per unit. The Company receives advances under certain of its contracts for products sold by Eagle. Those advances are considered contract liabilities with revenues recorded upon delivery of promised goods to customers. These advances are included in Other Accrued Expenses on the Company’s consolidated balance sheet. The following is a roll-forward of the advances from the date of the Eagle acquisition, December 2, 2022 through January 31, 2024 (in $000s): Contract liability – December 2, 2022 $ 1,560 Increases to contract liability 158 Decreases to contract liability (91 ) Contract liability – January 31, 2023 $ 1,627 Increases to contract liability 445 Decreases to contract liability (1,968 ) Contract liability – January 31, 2024 $ 104 The Company has seven revenue generating reportable geographic segments under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its limited use/disposable protective clothing and secondarily from its sales of reflective clothing, high-end chemical protective suits, firefighting and heat protective apparel, reusable woven garments and gloves and arm guards. The Company believes disaggregation of revenue by geographic region and product line best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see table below). Net sales by geographic region and by product line are included below: Year Ended January 31, (in millions of dollars) 2024 2023 External Sales by Product Lines: Disposables $ 49.6 $ 55.2 Chemical 20.3 22.2 Fire 26.5 14.7 Gloves 2.2 2.3 High Visibility 6.6 5.8 High Performance Wear 6.9 5.0 Wovens 12.6 7.6 Consolidated external sales $ 124.7 $ 112.8 Year Ended January 31, (in millions of dollars) 2024 2023 External Sales by Region: USA $ 55.3 $ 49.0 Other foreign 9.9 7.2 Europe (UK) 16.3 8.3 Mexico 4.0 3.7 Asia 13.8 24.7 Canada 9.3 9.1 Latin America 16.1 10.8 Consolidated external sales $ 124.7 $ 112.8 Advertising Costs Advertising costs are expensed as incurred and included in operating expenses on the consolidated statement of operations. Advertising and co-op costs amounted to $0.6 million and $0.5 million in FY24 and FY23. Stock-Based Compensation The Company records the cost of stock-based compensation plans based on the fair value of the award on the grant date. For awards that contain a vesting provision, the cost is recognized over the requisite service period (generally the vesting period of the equity award), which approximates the performance period. For awards based on services already rendered, the cost is recognized immediately. Income Taxes The Company is required to estimate its income taxes in each of the jurisdictions in which it operates as part of preparing the consolidated financial statements. This involves estimating the actual current tax in addition to assessing temporary differences resulting from differing treatments for tax and financial accounting purposes. These differences, together with net operating loss carryforwards and tax credits, are recorded as deferred tax assets or liabilities on the Company’s consolidated balance sheet. A judgment must then be made of the likelihood that any deferred tax assets will be recovered from future taxable income. A valuation allowance may be required to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines that it may not be able to realize all or part of its deferred tax asset in the future or that new estimates indicate that a previously recorded valuation allowance is no longer required, an adjustment to the deferred tax asset is charged or credited to income in the period of such determination. The Company recognizes tax positions that meet a “more likely than not” minimum recognition threshold. If necessary, the Company recognizes interest and penalties associated with tax matters as part of the income tax provision and would include accrued interest and penalties with the related tax liability in the consolidated balance sheets. Foreign Operations and Foreign Currency Translation The Company maintains manufacturing operations in Mexico, India, Argentina, New Zealand, Vietnam and the People’s Republic of China and can access independent contractors in China, Vietnam, Argentina and Mexico. It also maintains sales and distribution entities in India, Canada, the U.K., Chile, China, Argentina, Russia, Kazakhstan, Uruguay, Australia and Mexico. The Company is vulnerable to currency risks in these countries. The functional currency for the United Kingdom subsidiaries is the Pound; the trading company in China, the RMB; the Russian operation, the Russian Ruble; the New Zealand Dollar in New Zealand, and the Kazakhstan operation, the Kazakhstan Tenge. All other operations have the U.S. dollar as their functional currency. Pursuant to US GAAP, assets and liabilities of the Company’s foreign operations with functional currencies other than the U.S. dollar are translated at the exchange rate in effect at the balance sheet date, while revenues and expenses are translated at average rates prevailing during the periods. Translation adjustments are reported in accumulated other comprehensive loss, a separate component of stockholders’ equity. Cash flows are also translated at average translation rates for the periods; therefore, amounts reported on the consolidated statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Fair Value of Financial Instruments US GAAP defines fair value, provides guidance for measuring fair value and requires certain disclosures utilizing a fair value hierarchy which is categorized into three levels based on the inputs to the valuation techniques used to measure fair value. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect management’s own assumptions. There were no foreign currency forward or hedge contracts at January 31, 2024 or January 31, 2023. The financial instruments of the Company classified as current assets or liabilities, including cash and cash equivalents, accounts receivable, short-term borrowings, borrowings under revolving credit facility, accounts payable and accrued expenses, are recorded at carrying value, which approximates fair value based on the short-term nature of these instruments. Net Income Per Share Net income per share is based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted net income per share is based on the weighted average number of common shares and common stock equivalents. The diluted net income per share calculation takes into account unvested restricted shares and the shares that may be issued upon the exercise of stock options, reduced by shares that may be repurchased with the funds received from the exercise, based on the average price during the fiscal year. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Income Taxes In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company plans to adopt the provisions of this guidance in conjunction with our Form 10-K for our fiscal year ending January 31, 2026. Segment Reporting In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This guidance requires a public entity to disclose for each reportable segment, on an interim and annual basis, the significant expense categories and amounts that are regularly provided to the chief operating decision-maker (“CODM”) and included in each reported measure of a segment’s profit or loss. Additionally, it requires a public entity to disclose the title and position of the individual or the name of the group or committee identified as the CODM. This guidance is effective for fiscal years beginning after December 31, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the guidance should be applied retrospectively to all periods presented in the financial statements, unless it is impracticable. The Company plans to adopt the provisions of this guidance in conjunction with our Form 10-K for the fiscal year ending January 31, 2025.

INVENTORIES

INVENTORIES	12 Months Ended
INVENTORIES	Jan. 31, 2024
INVENTORIES
INVENTORIES	2. INVENTORIES Inventories consist of the following (in $000s): January 31, 2024 2023 Raw materials $ 27,417 $ 29,036 Work-in-process 668 952 Finished goods 29,719 32,855 Excess and obsolete adjustments (6,554 ) (4,668 ) $ 51,250 $ 58,176

PROPERTY AND EQUIPMENT NET

PROPERTY AND EQUIPMENT NET	12 Months Ended
PROPERTY AND EQUIPMENT NET	Jan. 31, 2024
PROPERTY AND EQUIPMENT NET
PROPERTY AND EQUIPMENT, NET	3. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following (in $000s): Useful Life January 31, in Years 2024 2023 Machinery and equipment 3-10 $ 10,773 $ 5,436 Furniture and fixtures 3-10 988 492 Leasehold improvements Lease term 2,388 2,094 Computer hardware and software 3 5,430 5,015 Land and building 20-30 7,625 9,508 27,203 22,546 Less accumulated depreciation and amortization (17,600 ) (14,406 ) Construction-in-progress 1,081 1,001 $ 10,685 $ 9,140 Depreciation and amortization expense for FY24 and FY23 amounted to $1.9 million and $1.4 million, respectively.

INVESTMENTS

INVESTMENTS	12 Months Ended
INVESTMENTS	Jan. 31, 2024
INVESTMENTS
INVESTMENTS	4. 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 A1 Shares of Bodytrak for £1,500,000 ($1.9 million). On October 26, 2022, the Company acquired an additional 254,452 Series A Shares of Bodytrak for £1,000,000 ($1.2 million). After completion of these additional investments, the Company owned 22.5% of Bodytrak’s total 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 of Bodytrak, including internally developed intellectual property. On May 19, 2023, the Company entered into an agreement with Bodytrak to provide an additional investment of up to an aggregate of £1,500,000 ($1.9 million on the date of initial investment) in the form of a secured convertible loan with an option for an additional £1,000,000 investment at the Company’s discretion. An initial investment funding of £500,000 ($0.6 million on the date of investment) was made on May 19, 2023. Additional investment fundings of £700,000 ($0.9 million on the date of investment) and £500,000 ($0.6 million on the date of investment) were made on September 8, 2023 and December 15, 2023, respectively. The loaned amounts are due twenty-four months from the issue date, which can be extended upon mutual agreement. The convertible note bears interest at either an annual rate of 12% for cash interest or 15% for payment in kind interest on the outstanding amount under the note, such rate being selected by Bodytrak. The notes can be converted into equity shares of Bodytrak under a number of conditions, including a qualified equity financing as defined in the agreement, a change of control, an IPO, default or conversion at the discretion of the Company and upon the occurrence of the specified event. The convertible note is secured by Bodytrak’s intellectual property. 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, cloud-based analytics, and hardware that includes a patented earpiece for physiological monitoring and audio communications. For FY24 and FY23, the Company recognized losses of $0.6 and $0.4 million, respectively. The loss is reflected in other income (expense), net in the consolidated statements of operations.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Jan. 31, 2024
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	5. GOODWILL AND INTANGIBLE ASSETS Changes in goodwill during the fiscal years ended January 31, 2024 and 2023, were as follows (in $000s): 2024 2023 Balance at February 1 $ 8,473 $ 871 Measurement period adjustment 1,447 ---- Acquisitions 3,749 7,602 Balance at January 31 $ 13,669 $ 8,473 During FY24 , Changes in intangible assets during the fiscal years ended January 31, 2024 and 2023, were as follows (in $000s): 2024 2023 Balance at February 1 $ 6,042 $ ---- Acquisitions 1,211 6,109 Amortization (423 ) (67 ) Balance at January 31 $ 6,830 $ 6,042 January 31, 2024 January 31, 2023 Intangible Assets (in $000s) Weighted Average Life in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 15 $ 3,558 $ (267 ) $ 3,291 $ 3,283 $ (37 ) $ 3,246 Trade names and trademarks 15 1,773 (109 ) 1,664 1,333 (15 ) 1,318 Technological know-how 15 1,989 (114 ) 1,875 1,493 (15 ) 1,478 Total $ 7,320 $ (490 ) $ 6,830 $ 6,109 $ (67 ) $ 6,042 Intangible asset amortization expense over the next five years is expected to be approximately $0.5 million per year.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
ACQUISITIONS	Jan. 31, 2024
ACQUISITIONS
ACQUISITIONS	6. ACQUISITIONS Acquisition of Pacific On November 30, 2023 the Company acquired New Zealand-based Pacific Helmets NZ Limited (“Pacific”) in an all-cash transaction valued at approximately NZ$14.000,000 ($8.5 million at the closing date exchange rate) including assumption of debt, subject to post-closing adjustments and customary holdback provisions. The acquisition enhances Lakeland’s product portfolio, particularly within fire service protective helmets. Headquartered in Whanganui, New Zealand, Pacific is a leading designer and provider of structural firefighting, wildland firefighting, and technical rescue helmets. The transaction was funded through the revolving credit facility and cash balances. Pacific’s operating results are included in our consolidated financial statements from the acquisition date. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. As part of the acquisition agreement, Pacific will pay from the holdback an amount equal to the amount by which Pacific’s revenue falls below NZ$11.1 million for Pacific’s fiscal year ending March 31, 2024 subject to certain conditions. The estimated amount of the reduction to the holdback to be paid by the Company is less than $0.1 million. The estimate was developed using a Monte Carlo simulation. If Pacific exceeds the revenue target of NZ$11.1 million, Pacific will not receive any additional consideration. The following table summarizes the preliminary fair values of the Pacific assets acquired and liabilities assumed at the date of the acquisition: Net working capital acquired (including cash of $0.1 million) $ 1,694 Property, plant and equipment 2,265 Customer relationships 275 Trade names and trademarks 440 Technological know-how 495 Goodwill 3,749 Total assets acquired 8,918 Less liabilities assumed (2,787 ) Net assets acquired $ 6,131 Assets acquired and liabilities assumed in connection with the acquisition were recorded at estimated fair values. Estimated fair values were determined by management, based in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the estimated fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges; the relief from royalty method for trade names and trademarks and technological know-how; and the cost method for the assembled workforce was included in goodwill. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on Pacific’s pre-acquisition forecasts. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships, trade names and trademarks and technological know-how acquired in the Pacific transaction are being amortized over periods of 14 years, 15 years and 10 years, respectively. Goodwill is calculated as the excess of the purchase price over the estimated fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the estimated fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of Pacific with our operations. Due to the timing of the completion of the acquisition, the purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding assets acquired and liabilities assumed, and revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to contingent consideration, inventory, contractual relationships, tangible assets and intangible assets. These changes to the purchase price allocation could be significant. The purchase price allocation will be finalized within the measurement period of up to one year from the acquisition date. Acquisition of Eagle On December 2, 2022, we acquired 100% of Eagle's common stock in an all-cash transaction valued at $10.5 million, net of net working capital acquired. Headquartered in Manchester, UK, Eagle is a leading designer and provider of protective apparel to the fire and industrial sectors. Eagle provides differentiated product offerings through its innovative and technical solutions. Eagle’s operating results are included in our consolidated financial statements from the acquisition date. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. As part of the Eagle acquisition agreement, the Company agreed to pay an earnout payment equal to the amount by which Eagle’s revenue exceeds 6 million GBP for the period May 1, 2022 through April 30, 2023. The Company also agreed to pay an earnout payment equal to the amount by which Eagle’s revenue exceeds 6.3 million GBP for the period May 1, 2023 through April 30, 2024. The estimated amount of the earnout payment developed using a Monte Carlo simulation included in the preliminary valuation was $3.2 million. Eagle did not reach the revenue threshold for the period May 1, 2022 through April 30, 2023 and received no payment for that period. Based on the revised forecast for the period May 1, 2023 through April 30, 2024, the estimated amount of the earnout payment developed using a Monte Carlo simulation is $0.6 million. The adjustment to the accrued earnout payment of $2.5 million was recorded in FY24, and reflected as a reduction in operating expenses. The following table summarizes the preliminary fair values of the Eagle assets acquired and liabilities assumed at the date of the acquisition: Current assets acquired (including cash of $2.2 million) $ 3,729 Property, plant and equipment 41 Customer relationships 3,283 Trade names and trademarks 1,333 Technological know-how 1,493 Goodwill 7,602 Total assets acquired 17,481 Less liabilities assumed (2,334 ) Net assets acquired $ 15,147 Assets acquired and liabilities assumed in connection with the acquisition were recorded at estimated fair values. Estimated fair values were determined by management, based in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the estimated fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges; the relief from royalty method for trade names and trademarks and technological know-how; and the cost method for the assembled workforce was included in goodwill. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on Eagle’s pre-acquisition forecasts. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships, trade names and trademarks and technological know-how acquired in the Eagle transaction are being amortized over periods of 15 years, 15 years and 17 years, respectively. Liabilities assumed primarily relate to customer deposits included within Other Accrued Expenses. Goodwill is calculated as the excess of the purchase price over the estimated fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the estimated fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of Eagle with our operations. During FY24 , The following unaudited pro forma information presents our combined results as if the Pacific and Eagle acquisitions had occurred at the beginning of FY23. The unaudited pro forma financial information was prepared to give effect to events that are (1) directly attributable to the acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the combined company's results. There were no material transactions between the Company and the acquired entities during the periods presented that are required to be eliminated. The unaudited pro forma combined financial information does not reflect cost savings, operating synergies or revenue enhancements that the combined companies may achieve or the costs to integrate the operations or the costs necessary to achieve cost savings, operating synergies or revenue enhancements. Pro forma combined financial information (Unaudited) (in millions, except per share amount) Year Ended January 31, 2024 2023 Net sales $ 129.8 $ 122.3 Net income $ 5.8 $ 1.6 Basic earnings per share $ 0.79 $ 0.22 Diluted earnings per share $ 0.77 $ 0.21 The unaudited pro forma combined financial information is presented for information purposes only and is not intended to represent or be indicative of the combined results of operations or financial position that we would have reported had the acquisition been completed as of the date and for the periods presented, and should not be taken as representative of our consolidated results of operations or financial condition following the acquisition. In addition, the unaudited pro forma combined financial information is not intended to project the future results of the combined company. The unaudited pro forma combined financial information was prepared using the acquisition method of accounting under existing U.S. GAAP. The Company has been treated as the acquirer. Total acquisition-related costs were $0.5 million and $0.6 million for the years ended January 31, 2024 and 2023, respectively. Transactional costs and acquisition-related amortization is included in operating expenses in the Consolidated Statements of Operations.

LONGTERM DEBT

LONGTERM DEBT	12 Months Ended
LONGTERM DEBT	Jan. 31, 2024
LONGTERM DEBT
LONG-TERM DEBT	7. 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 (i) $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 was to mature on June 25, 2025. Borrowings under the revolving credit facility bear interest at a rate per annum equal to the sum of the LIBOR Daily Floating Rate (“LIBOR”), plus 125 basis points. LIBOR is subject to a floor of 100 basis points. All outstanding principal and unpaid accrued interest under the revolving credit facility is due and payable on the maturity date. On a one-time basis, and subject to there not existing an event of default, the Company may elect to convert up to $5 million of the then outstanding principal of the revolving credit facility to a term loan facility with an assumed amortization of 15 years and the same interest rate and maturity date as the revolving credit facility. The Loan Agreement provides for an annual unused line of credit commitment fee, payable quarterly, of 0.25%, based on the difference between the total credit line commitment and the average daily amount of credit outstanding under the facility during the preceding quarter. On June 18, 2021, the Company entered into Amendment No. 1 to the Loan Agreement (the “Amendment”) with the Lender, which modified certain terms of the Company’s existing Loan Agreement with the Lender. The Amendment increased the credit limit under the Loan Agreement’s senior secured revolving credit facility from $12.5 million to $25.0 million. The Amendment also amended 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. The Loan Agreement requires the Company to maintain a Funded Debt to EBITDA (as each such term is defined in the Loan Agreement) ratio of 3.0 to 1.0 or less and a Basic Fixed Charge Coverage Ratio (as defined in the Loan Agreement) of at least 1.15 to 1.0. The Loan Agreement also contains customary covenants, including covenants that, among other things, limit or restrict the Company’s and/or the Company’s subsidiaries’ ability, subject to certain exceptions and qualifications, to incur liens or indebtedness, pay dividends or merge, consolidate or sell or otherwise transfer assets. The Company was in compliance with all of its debt covenants as of January 31, 2024. The Company made certain representations and warranties to the Lender in the Loan Agreement that are customary for credit arrangements of this type. The Company also agreed to maintain, as of the end of each fiscal quarter, a minimum “basic fixed charge coverage ratio” (as defined in the Loan Agreement) of at least 1.15 to 1.00 and a “funded debt to EBITDA ratio” (as defined in the Loan Agreement) not to exceed 3.00 to 1.00, in each case for the trailing 12-month period ending with the applicable quarterly reporting period. The Company also agreed to certain negative covenants that are customary for credit arrangements of this type, including restrictions on the Company’s ability to enter into mergers, acquisitions or other business combination transactions, conduct its business, grant liens, make certain investments, make substantial change in the present executive or management personnel and incur additional indebtedness, which negative covenants are subject to certain exceptions. The Loan Agreement contains customary events of default that include, among other things (subject to any applicable cure periods and materiality qualifier), non-payment of principal, interest or fees, defaults under related agreements with the Lender, cross-defaults under agreements for other indebtedness, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and material adverse change. Upon the occurrence of an event of default, the Lender may terminate all loan commitments, declare all outstanding indebtedness owing under the Loan Agreement and related documents to be immediately due and payable, and may exercise its other rights and remedies provided for under the Loan Agreement. In connection with the Loan Agreement, the Company entered into with the Lender (i) a security agreement dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in substantially all of the personal property and the intangibles of the Company, and (ii) a pledge agreement, dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in the stock of its subsidiaries (limited to 65% of those subsidiaries that are considered “controlled foreign subsidiaries” as set forth in the Internal Revenue Code and regulations). The Company’s obligations to the Lender under the Loan Agreement are also secured by a negative pledge evidenced by a Non-encumbrance Agreement covering the real property owned by the Company in Decatur, Alabama On November 30, 2023, the Company entered into Amendment No. 3 to the Loan Agreement by and between Bank of America, N.A. (the “Lender”) and the Company (the “Third Amendment”). Pursuant to the Third Amendment, the Lender consented to the Company’s acquisition of one hundred percent (100%) of the equity interests of Pacific. The Third Amendment further provided for certain amendments to the Loan Agreement to permit additional indebtedness to be made available to Pacific, to exempt Pacific from certain requirements of the Loan Agreement pertaining to subsidiary guaranty and asset pledges that would otherwise be required under the Loan Agreement and to waive the Company’s borrowing base limitations through January 31, 2024. The Third Amendment also provided for the reaffirmation of representations, warranties and covenants under the Loan Agreement as are customary in connection with similar amendments of credit documents. As of January 31, 2024, the Company had no borrowings outstanding on the letter of credit sub-facility and no borrowings outstanding under the revolving credit facility. On March 28, 2024, the Company entered into Amendment No. 4 to the Loan Agreement by and between Bank of America, N.A. (the “Lender”) and the Company (the “Fourth Amendment”). Pursuant to the Fourth Amendment, the Lender and the Company agreed to, among other things, (i) extend the expiration date of the credit facility to March 28, 2029, (ii) increase the availability under the revolving credit facility to $40.0 million with an accordion feature providing for the potential funding of an additional $10.0 million, (iii) remove the borrowing base component of the credit facility; and (iv) modify the interest rate based on Daily SOFR plus the Applicable Rate. The Applicable Rate is based upon a Funded Debt to EBITDA Ratio and includes four (4) different levels constituting a SOFR margin range from 1.25% to 2.00%. In addition, the Fourth Amendment (i) modified the Funded Debt to EBITDA Ratio covenant so as not to exceed 3.5x (with step-downs to 3.25 and 3.0 in 2025 and 2026), (ii) modified the Basic Fixed Charge Coverage Ratio covenant to a minimum of 1.20x, (iii) includes a springing Asset Coverage Ratio covenant of at least 1.10x, but only to the extent that the maximum Total Leverage Ratio exceeds 3.00x at any reporting period, (iv) increases the sublimit for letters of credit to $10.0 million, and (v) imposes a floor to Daily SOFR of one percent (1.00%). The Fourth Amendment provides for additional indebtedness or the assumption of existing indebtedness for acquisitions of foreign subsidiaries (not to exceed $10.0 million in USD) and increased the size of Permitted Acquisitions, without prior approval from the Lender, to $17.5 million per occurrence and $35.0 million in the aggregate. Borrowings in UK On December 31, 2014, the Company and Lakeland Industries Europe, Ltd. (“Lakeland UK”), a wholly owned subsidiary of the Company, amended the terms of its existing line of credit facility with HSBC Bank to provide for (i) a one-year extension of the maturity date of the existing financing facility to December 19, 2016, (ii) an increase in the facility limit from £1,250,000 (approximately USD $1.9 million, based on exchange rates at time of closing) to £1,500,000 (approximately USD $2.3 million, based on exchange rates at time of closing), and (iii) a decrease in the annual interest rate margin from 3.46% to 3.0%. In addition, pursuant to a letter agreement dated December 5, 2014, the Company agreed that £400,000 (approximately USD $0.6 million, based on exchange rates at the time of closing) of the note payable by the UK subsidiary to the Company shall be subordinated in priority of payment to the subsidiary’s obligations to HSBC under the financing facility. This agreement has been subsequently amended with the most recent amendment on March 8, 2022. The cumulative result of the amendments through March 8, 2022 reflect a reduction of the service charge to 0.765%. The agreement can be terminated with three months’ notice. There were no borrowings outstanding under this facility at January 31, 2024. Pacific Borrowings Pacific has two facilities with the Bank of New Zealand. Pacific has a trade finance facility where the lender finances vendor purchases. The trade finance facility has a limit of 500,000 New Zealand dollars and caries an interest rate at the prevailing base rate for the relevant currency of the vendor plus a margin of 3.00% per annum. The facility includes two term loans. The first term loan of 1,500,000 New Zealand dollars matures on December 17, 2025, carries an interest rate of 2.3% per annum and requires monthly payments of $19,350.27 New Zealand dollars. The second term loan of 550,000 New Zealand dollars matures on November 18, 2024, carries an interest rate of 3.5% per annum and requires monthly payments of 10,005 New Zealand dollars. The facilities expire in August 2026 and are secured by a security interest in Pacific’s real property. Borrowings under the trade finance facility and amounts due in FY25 under the term loans are reported as short-term borrowings and were $0.3 million at January 31, 2024. Borrowings under the term loans due after FY25 are reported as long-term borrowings and were $0.7 million at January 31, 2024.

CONCENTRATION OF RISK

CONCENTRATION OF RISK	12 Months Ended
CONCENTRATION OF RISK	Jan. 31, 2024
CONCENTRATION OF RISK
CONCENTRATION OF RISK	8. 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); Royal Bank of Scotland, 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, JSC Bank Centercredit in Kazakhstan and Bank of New Zealand in New Zealand. 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 $3.3 million total included in U.S. bank accounts and approximately $22.0 million total in foreign bank accounts as of January 31, 2024, of which $24.4 million was uninsured. Major Customer No customer accounted for more than 10% of net sales during FY24 and FY23. Major Supplier No vendor accounted for more than 10% of purchases during FY24 and FY23.

STOCKHOLDERS EQUITY

STOCKHOLDERS EQUITY	12 Months Ended
STOCKHOLDERS EQUITY	Jan. 31, 2024
STOCKHOLDERS EQUITY
STOCKHOLDERS' EQUITY	9. 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 (the “Common Stock”), 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): Year Ended January 31, 2024 2023 2017 Plan: Total restricted stock and stock option programs $ 1,365 $ 1,491 Total income tax expense recognized for stock-based compensation arrangements $ 287 $ 313 Restricted Stock 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 years ended January 31, 2024 and 2023. 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 June 2021, June 2022 and March 2023 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 36,475 56,065 92,540 $ 18.19 Vested (141,833 ) (30,370 ) (172,203 ) $ 10.33 Forfeited --- --- --- Outstanding at January 31, 2023 127,480 40,665 168,145 $ 22.95 Awarded 64,953 130,390 195,343 $ 14.19 Vested (71,202 ) (26,336 ) (97,538 ) $ 14.90 Forfeited (38,901 ) (31,829 ) (70,730 ) Outstanding at January 31, 2024 82,330 112,890 195,220 $ 16.61 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 June 2021 grants. Performance measures for the April 2022 grants are revenue growth and EBITDA margin. Performance measures for the March 2023 grants are revenue growth, EBITDA margin and return on invested capital. 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 January 31, 2024, unrecognized stock-based compensation expense totaled $1.0 million pursuant to the 2017 Plan based on outstanding awards under the 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 Shares repurchased in FY24 totaled 27,514 shares at a cost of $0.3 million, leaving $5.0 million remaining under the share repurchase program at January 31, 2024. The share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Jan. 31, 2024
INCOME TAXES
INCOME TAXES	10. INCOME TAXES The provision for income taxes is based on the following pretax income (loss): Years Ended January 31, Domestic and Foreign Pretax Income (Loss) 2024 2023 Domestic $ 8,648 $ 15,322 Foreign 708 (9,851 ) Total $ 9,356 $ 5,471 The domestic and foreign pretax income in the schedule above reflects intercompany dividends paid to the U.S. from international subsidiaries of $11.4 million and $19.0 million for fiscal years ended January 31, 2024 and 2023, respectively. Years Ended January 31, 2024 2023 Income Tax Expense (Benefit) Current: Federal $ 17 $ 2 State and other taxes 58 68 Foreign 4,674 3,450 Total Current Tax Expense $ 4,749 $ 3,520 Deferred: Domestic ($186) ($756) Foreign (633 ) 834 Total Deferred Tax Expense (819 ) $ 78 Total Income Taxes $ 3,930 $ 3,598 The following is a reconciliation of the effective income tax rate to the Federal statutory rate: Years Ended January 31, 2024 2023 Statutory rate 21.00 % 21.00 % State Income Taxes, Net of Federal Tax Benefit 0.49 % 0.05 % Adjustment to Deferred (23.26 )% 13.54 % GILTI 9.07 % 24.84 % Foreign Tax Credit – GILTI (2.42 )% (14.86 )% Section 250 Deduction (4.92 )% (15.74 )% Permanent Differences 0.20 % 0.07 % Valuation Allowance-Deferred Tax Asset 33.29 % 6.41 % Foreign Tax Credit (15.24 )% (9.74 )% Section 78 Gross-up 0.77 % 6.64 % Argentina Flow Through Loss 7.20 % 1.09 % Withholding Taxes 5.72 % 36.55 % Foreign Rate Differential 18.25 % 2.11 % Change in State Apportionment Rate (1.48 )% (1.38 )% Foreign employee benefits (1.58 )% (3.58 )% Foreign Dividends Paid to U.S. 25.69 % 73.01 % Foreign Dividends Received Deduction (25.69 )% (73.01 )% Earnout Adjustment (5.70 )% --- Other 0.62 % (1.25 )% Effective Rate 42.01 % 65.74 % The tax effects of temporary cumulative differences which give rise to deferred tax assets are summarized as follows: Years Ended January 31, 2024 2023 Deferred tax assets: Inventories $ 1,545 $ 1,147 US tax loss carryforwards, including work opportunity credit 167 186 Accounts receivable and accrued rebates 295 278 Accrued compensation and other 441 123 India reserves - US deduction 24 22 Equity based compensation 346 1,178 Foreign tax credit carry-forward 4,548 3,123 State and local carry-forwards 1,256 18 Depreciation and amortization (1,846 ) (155 ) Prepaid expenses (253 ) (175 ) Right-of-use asset (1,590 ) (697 ) Operating lease liability 1,672 732 Foreign carry-forwards 1,102 438 Withholding taxes (383 ) (769 ) Other 351 107 Deferred tax asset 7,675 5,556 Less valuation allowance (6,675 ) (3,561 ) Net deferred tax asset $ 1,000 $ 1,995 January 31, Balance sheet classification 2024 2023 Long-term deferred tax asset $ 3,097 $ 2,764 Long-term deferred tax liability $ 2,097 $ 769 The benefit relating to capital loss, operating loss, and credit carryforwards included in the above table at January 31, 2024, consisted of: Gross Carryforward Benefit Amount Valuation Allowance Expiration Beginning In State operating loss carryforwards $ 20,132 $ 1,256 $ (1,025 ) 2028 Foreign tax credit carryforwards 4,548 (4,548 ) 2025 Federal credit carryforwards 167 - 2035 Mexico operating loss carryforwards $ 1,199 360 (360 ) 2033 Chile operating loss carryforwards $ 2,414 652 (652 ) Indefinite UK operating loss carryforwards $ 361 90 (90 ) Indefinite Total $ 7,073 $ (6,675 ) A significant portion of our net operating loss carryforwards were generated in the state of Alabama prior to the change in apportionment factor rules for that state in 2021 which moved the state to a single sales factor apportionment method. The impact of the state law change significantly reduced our apportionment factor in that state, making it unlikely that we will generate sufficient income allocated to that state in order to utilize the full amount of our net loss carryforwards prior to their expiration. Indefinite Reinvestment Assertion The Company generally considers all earnings generated outside of the U.S. to be permanently reinvested offshore, with the exception to countries where cash can be repatriated without withholding taxes, and in China in which the Company previously determined excess cash over what was required to fund operations and growth existed. During FY24, the Company repatriated $4.5 million and $7.0 million from Canada and China, respectively. The Company also identified an additional $3.8 million in excess cash in its Chinese operations for which it plans to repatriate in the future. A withholding tax liability has been established for the expected withholding taxes in the amount of $0.4 million as of the period ended January 31, 2024. The distribution from Canada received during FY24 was a result of the sale of real estate during the year. The sale resulted in after tax excess cash that the Company determined was not needed to fund local operations and repatriated back to the US in a one-time action. The Company still currently maintains a permanently reinvestment assertion on its future Canada operations. Income Tax Audits The Company is subject to US federal income tax, as well as income tax in multiple US state and local jurisdictions and a number of foreign jurisdictions. Returns for the years since FY20 are still open based on statutes of limitation only. Chinese tax authorities have performed limited reviews on all Chinese subsidiaries as of tax years 2008 through 2021 with no significant issues noted and we believe our tax positions are reasonably stated as of January 31, 2024. The 2023 tax review will be performed before May 31, 2024 in China. Change in Valuation Allowance We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. The valuation allowance for the years ended January 31, 2024 and January 31, 2023 was $6.7 million and $3.6 million, respectively. OECD and Pillar Two In 2021 the Organization for Economic Cooperation and Development (OECD) announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15%. Subsequently multiple sets of administrative guidance have been issued. Many non-U.S. tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 with the adoption of additional components in later years or announced their plans to enact legislation in future years. Although we expect increased tax compliance efforts as a result of new legislation, we do not expect Pillar Two to have a significant impact on our effective tax rate or our consolidated results of operations, financial position and cash flows.

NET INCOME PER SHARE

NET INCOME PER SHARE	12 Months Ended
NET INCOME PER SHARE	Jan. 31, 2024
Net income per common share:
NET INCOME PER SHARE	11. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share as follows: Years Ended January 31, (000’s except share information) 2024 2023 Numerator – Net Income $ 5,425 $ 1,873 Denominator for basic net income per share (weighted-average shares which reflect 1,358,208 and 1,330,694 treasury shares at January 31, 2024 and 2023, respectively) 7,352,356 7,562,187 Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options 187,349 175,776 Denominator for diluted net income per share (adjusted weighted average shares) 7,539,705 7,737,963 Basic net income per share $ 0.74 $ 0.25 Diluted net income per share $ 0.72 $ 0.24

DERIVATIVE INSTRUMENTS AND FORE

DERIVATIVE INSTRUMENTS AND FOREIGN CURRENCY EXPOSURE	12 Months Ended
DERIVATIVE INSTRUMENTS AND FOREIGN CURRENCY EXPOSURE	Jan. 31, 2024
DERIVATIVE INSTRUMENTS AND FOREIGN CURRENCY EXPOSURE
DERIVATIVE INSTRUMENTS AND FOREIGN CURRENCY EXPOSURE	12. DERIVATIVE INSTRUMENTS AND FOREIGN CURRENCY EXPOSURE The Company is exposed to foreign currency risk. Management has commenced a derivative instrument program to partially offset this risk by purchasing forward contracts to sell the Canadian Dollar and the Euro other than the cash flow hedge discussed below. Such contracts are largely timed to expire on the last day of the fiscal quarter, with a new contract purchased on the first day of the next quarter to match the Company's operating cycle. We designated the forward contracts as derivatives but not as hedging instruments, with loss and gain recognized in current earnings. The Company accounts for its foreign exchange derivative instruments by recognizing all derivatives as either assets or liabilities at fair value, which may result in additional volatility in current period earnings or other comprehensive income, depending on whether the instrument was designated as a cash flow hedge, as a result of recording recognized and unrecognized gains and losses from changes in the fair value of derivative instruments. We have one type of derivatives to manage the risk of foreign currency fluctuations. We enter into forward contracts with financial institutions to manage our currency exposure related to net assets and liabilities denominated in foreign currencies. Those forward contract derivatives, not designated as hedging instruments, were generally settled quarterly. Gain and loss on those forward contracts are included in current earnings. There were no outstanding forward contracts at January 31, 2024 or 2023.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 31, 2024
Commitments and contingencies
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES Certain conditions may exist as of the date the 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 legal counsel assess such contingent liabilities, which inherently involve 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 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. During the third quarter of FY24, the Company sent a letter to the landlord outlining certain structural defects on the newly constructed facility in Monterrey, Mexico that would inhibit the Company from effectively utilizing the facility for its intended purpose. The Company has initiated discussions with the landlord as to potential remedies which may inform our decision-making process with respect to this property. Changes in our long-term intended use for the building may impact the carrying value of the currently recorded right of use asset. 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 January 31, 2024, to the best of the Company’s knowledge, there were no significant outstanding claims or litigation. Leases We lease real property, equipment and automobiles. The Company made the accounting policy election to account for short-term leases as described herein. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of the Company’s real estate leases are classified as operating leases. Most of our real estate leases include one or more options to renew, with renewal terms that generally can extend the lease term for an additional four to five years. The exercise of lease renewal options is at the Company’s discretion. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants. Lease cost The components of lease expense are included on the consolidated statement of operations as follows (in 000’s): Classification Year Ended January 31, 2024 Year Ended January 31, 2023 Operating lease cost Cost of goods sold $ 1,092 $ 272 Operating expenses $ 1,402 $ 1,035 Short-term lease cost $ 221 $ 169 Weighted-average lease terms and discount rates are as follows: January 31, 2024 January 31, 2023 Weighted-average remaining lease term (years) Operating leases 8.0 8.2 Weighted-average discount rate Operating leases 10.4 % 5.25 % Supplemental cash flow information related to leases were as follows (in 000’s): Cash paid for amounts included in the measurement of lease liabilities: Year Ended January 31, 2024 Year Ended January 31, 2023 Operating cash flows from operating leases $ 1,932 $ 1,436 Leased assets obtained in exchange for new operating lease liabilities $ 5,591 $ 1,148 Maturity of Lease Liabilities Maturity of lease liabilities as of January 31, 2024 was as follows (in $000’s): Year ending January 31, Operating Leases 2025 $ 2,164 2026 2,092 2027 1,876 2028 1,805 2029 1,490 Thereafter 5,547 Total lease payments 14,974 Less: Interest 3,689 Present value of lease liability $ 11,285

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
SEGMENT REPORTING	Jan. 31, 2024
SEGMENT REPORTING
SEGMENT REPORTING	14. SEGMENT REPORTING Domestic and international sales from continuing operations are as follows in millions of dollars: 2024 2023 Domestic $ 55.3 $ 49.0 International 69.4 63.8 Total $ 124.7 $ 112.8 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), a manufacturing facility in New Zealand (helmets) 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, Australia, New Zealand 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 years noted therein: Year Ended January 31, 2024 2023 (in millions of dollars) Net Sales USA Operations (including Corporate) $ 60.9 $ 53.8 Other foreign 14.0 9.5 Europe (UK) 16.4 8.3 Mexico 6.7 5.2 Asia 46.2 63.7 Canada 9.3 9.0 Latin America 16.3 10.9 Less intersegment sales (45.1 ) (47.6 ) Consolidated sales $ 124.7 $ 112.8 External Sales USA Operations (including Corporate) $ 55.3 $ 49.0 Other foreign 9.9 7.2 Europe (UK) 16.3 8.3 Mexico 4.0 3.7 Asia 13.8 24.8 Canada 9.3 9.0 Latin America 16.1 10.8 Consolidated external sales $ 124.7 $ 112.8 Intersegment Sales USA Operations (including Corporate) $ 5.6 $ 4.8 Other foreign 4.1 2.4 Europe (UK) 0.1 ---- Mexico 2.7 1.5 Asia 32.4 38.9 Canada — — Latin America 0.2 — Consolidated intersegment sales $ 45.1 $ 47.6 Year Ended January 31, 2024 2023 (in millions of dollars) Operating Profit (Loss): USA Operations (including Corporate) $ (3.5 ) $ (6.4 ) Other foreign 2.0 0.4 Europe (UK) 0.1 (1.3 ) Mexico (2.1 ) (1.4 ) Asia 4.6 10.9 Canada 1.5 1.5 Latin America 2.8 1.9 Less intersegment (profit) loss 0.3 (0.1 ) Consolidated operating profit $ 5.7 $ 5.5 Depreciation and Amortization Expense: USA Operations (including Corporate) $ 0.8 $ 0.6 Other foreign 0.1 0.1 Europe (UK) 0.4 ---- Mexico 0.2 0.2 Asia 0.5 0.5 Canada 0.1 0.1 Latin America ---- ---- Less intersegment ---- ---- Consolidated depreciation and amortization expense $ 2.1 $ 1.5 Year Ended January 31, 2024 2023 (in millions of dollars) Total Assets: USA Operations (including Corporate) $ 92.2 $ 94.1 Other foreign 20.3 10.4 Europe (UK) 30.0 12.5 Mexico 12.1 5.5 Asia 51.6 55.8 Canada 8.5 6.0 Latin America 15.0 10.6 Less intersegment (76.0 ) (52.0 ) Consolidated assets $ 153.7 $ 142.9 Total Assets Less Intersegment: USA Operations (including Corporate) $ 47.1 $ 65.2 Other foreign 19.6 9.2 Europe (UK) 27.2 12.5 Mexico 10.2 5.3 Asia 29.0 35.6 Canada 8.3 5.8 Latin America 12.3 9.3 Consolidated assets $ 153.7 $ 142.9 Property and Equipment: USA Operations (including Corporate) $ 2.3 $ 3.3 Other foreign 2.7 0.2 Europe (UK) 0.1 0.1 Mexico 2.8 2.0 Asia 2.6 2.4 Canada ---- 0.8 Latin America 0.2 0.2 Less intersegment ---- 0.1 Consolidated long-lived assets $ 10.7 $ 9.1 Capital Expenditures: USA Operations (including Corporate) $ 0.5 $ 1.2 Other foreign ---- ---- Europe (UK) ---- ---- Mexico 1.0 - Asia 0.5 0.6 Canada ---- ---- Latin America $ 0.1 0.2 Consolidated capital expenditure $ 2.1 $ 2.0

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jan. 31, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	15. SUBSEQUENT EVENTS The Company has reviewed and evaluated whether any material subsequent events have occurred from January 31, 2024 through the filing date of the Company’s Annual Report on Form 10-K. All appropriate subsequent event disclosures have been made in the consolidated financial statements. On February 5, 2024, the Company acquired Italy and Romania-based Jolly Scarpe S.p.A. and Jolly Scarpe Romania S.R.L. (collectively, "Jolly") in an all-cash transaction valued at approximately $9.3 million subject to post-closing adjustments and customary holdback provisions. Jolly is a leading designer and manufacturer of professional footwear for the firefighting, military, police, and rescue markets. The company is headquartered in Montebelluna, Italy, with manufacturing operations in Bucharest, Romania, and has 150 employees. Jolly provides a differentiated product portfolio through its continued investment in research and development and use of modern materials and cutting-edge technologies in the production of its footwear. On March 28, 2024, the Company entered into Amendment No. 4 to Loan Agreement by and between Bank of America, N.A. (the “Lender”) and the Company (the “Fourth Amendment”). See Note 7, “Long-Term Debt” for additional information. On April 2, 2024, Lakeland Global Safety, Ltd. (“Lakeland Global”), a wholly-owned subsidiary the Company, entered into a Share Sale and Purchase Agreement (the “Purchase Agreement”), by and between Kantaras Investments Pte. Ltd., Lakeland Global, and the Company, pursuant to which Lakeland Global acquired all of the shares of the fire and rescue business of LHD Group Deutschland GmbH, LHD Group Australia Pty Ltd and LHD Group Hong Kong Ltd., wholly-owned entities of Kantaras Investments Pte. Ltd. (collectively, the “LHD Group”) for a purchase price of EUR 15.4 million (approximately USD $16.7 million), subject to post-closing adjustments and customary holdback provisions. The LHD Group is a leader in firefighter turnout gear, accessories, and Total Care services, including laundry, repair, and maintenance. The transaction will be funded through the Company’s credit facility. The acquisition is expected to close in May subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals.

BUSINESS AND SUMMARY OF SIGNI_2

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jan. 31, 2024
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 2,000 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, Middle East and countries within Southeast Asia. For purposes of this Form 10-K, FY refers to a fiscal year ended January 31; for example, FY24 refers to the fiscal year ended January 31, 2024.
Basis of Presentation	The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). We have reclassified certain prior year amounts to conform to current year presentation. The following is a description of the Company’s significant accounting policies.
Principles of Consolidation	The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates and Assumptions	The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that events could occur during the upcoming year that could change such estimates.
Cash and Cash Equivalents	The Company considers highly liquid temporary cash investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist of money market funds.
Accounts Receivable, net	Accounts Receivable, Net .
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. Adjustments are recorded for slow-moving, obsolete or unusable inventory. We assess our inventory for estimated obsolescence or unmarketable inventory and write down the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future sales and supply on hand, if necessary. If actual market conditions are less favorable than those projected by management, additional inventory adjustments may be required.
Property and Equipment	Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives on a straight-line basis. Leasehold improvements and leasehold costs are amortized over the term of the lease or service lives of the improvements, whichever is shorter. The costs of additions and improvements that substantially extend the useful life of a particular asset are capitalized. Repair and maintenance costs are charged to expense. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the account, and the gain or loss on disposition is reflected in operating income. Assets held for sale are measured at the lower of carrying value or fair value less cost to sell. Gains or losses are recognized for any subsequent changes to fair value less cost to sell. However, gains are limited to cumulative losses previously recognized. Assets classified as held for sale are not depreciated.
Equity Method Investments	Investments in which the Company can exercise significant influence, but do not control, are accounted for using the equity method and are presented on the consolidated balance sheets. The Company’s share of the net earnings or losses of the investee is presented within the consolidated statements of operations as other income (expense). The Company evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company's carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the investee. If the decline in fair value is deemed to be other than temporary, the security is written down to fair value. In situations where the fair value of an investment is not evident due to a lack of a public market price or other factors, the Company estimates fair value based on a discounted cash flow model and a market-based approach using inputs which include expected cash flows and a discount rate representative of the risks within the underlying business and forecasts to arrive at the estimated fair value of such investment.
Business combinations	In accordance with the accounting guidance for business combinations, the Company uses the acquisition method of accounting to allocate costs of acquired businesses to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition. The excess of the purchase price over the estimated fair value of assets and liabilities is recorded as goodwill. Assigning fair market values to the assets acquired and liabilities assumed at the date of acquisition requires knowledge of current market values and the values of assets in use and often requires the application of judgment regarding estimates and assumptions. While the ultimate responsibility resides with management for material acquisitions, we retain the services of certified valuation specialists to assist with assigning estimated values to certain acquired assets and assumed liabilities, including intangible assets, tangible long-lived assets, and contingent consideration. Acquired intangible assets, excluding goodwill, are valued using certain discounted cash flow methodologies based on future cash flows specific to the type of intangible asset purchased. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, discount rates, attrition rates and working capital changes. If the contingent consideration is deemed significant or absent an agreed-upon payout amount, the initial measurement of contingent consideration and the corresponding liability is evaluated using the Monte Carlo Method. For this valuation method, management develops projections during the contingent consideration period utilizing various potential pay-out scenarios. Probabilities are applied to each potential scenario, and the resulting values are discounted using a rate that considers the weighted average cost of capital as well as a specific risk premium associated with the riskiness of the contingent consideration itself, the related projections, and the overall business.
Goodwill and Other Intangible Assets	Intangible assets with a finite useful life are amortized on a straight-line basis over their useful lives. Indefinite lived intangible assets are assessed for possible impairment annually on November 1st or whenever circumstances change such that the recorded value of the asset may not be recoverable. All goodwill is assigned to and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Goodwill is not amortized, but evaluated for impairment at least annually or whenever events or changes in circumstance indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company may perform either a qualitative assessment of potential impairment or proceed directly to a quantitative assessment of potential impairment. If the Company chooses not to perform a qualitative assessment, or if it chooses to perform a qualitative assessment but is unable to conclude that no impairment has occurred qualitatively, then the Company will perform a quantitative assessment. A quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. The Company estimates the fair value of the reporting unit with which the goodwill is associated and compares it to the carrying value. If the estimated fair value of a reporting unit is less than its carrying value, an impairment charge is recognized for the excess of the reporting unit's carrying value over its fair value. Fair value is measured using on the discounted cash flow method and relative market-based approaches. There has been no impairment of our goodwill during the years ended January 31, 2024 and 2023.
Revenue Recognition	Substantially all of the Company’s revenue is derived from product sales, which consist of sales of the Company’s personal protective wear products to distributors. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within 30 to 90 days of the invoice date, and the contracts do not have significant financing components. The Company elected to account for shipping and handling activities as a fulfillment cost rather than a separate performance obligation. Shipping and handling costs associated with outbound freight are included in operating expenses, and for FY24 and FY23 aggregated approximately $3.4 million and $3.2 million, respectively. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. The transaction price includes estimates of variable consideration related to rebates, allowances, and discounts that are reductions in revenue. All estimates are based on the Company's historical experience, anticipated performance, and the Company's best judgment at the time the estimate is made. Estimates for variable consideration are reassessed each reporting period and are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur upon resolution of uncertainty associated with the variable consideration. All the Company’s contracts have a single performance obligation satisfied at a point in time, and the transaction price is stated in the contract, usually as quantity times price per unit. The Company receives advances under certain of its contracts for products sold by Eagle. Those advances are considered contract liabilities with revenues recorded upon delivery of promised goods to customers. These advances are included in Other Accrued Expenses on the Company’s consolidated balance sheet. The following is a roll-forward of the advances from the date of the Eagle acquisition, December 2, 2022 through January 31, 2024 (in $000s): Contract liability – December 2, 2022 $ 1,560 Increases to contract liability 158 Decreases to contract liability (91 ) Contract liability – January 31, 2023 $ 1,627 Increases to contract liability 445 Decreases to contract liability (1,968 ) Contract liability – January 31, 2024 $ 104 The Company has seven revenue generating reportable geographic segments under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its limited use/disposable protective clothing and secondarily from its sales of reflective clothing, high-end chemical protective suits, firefighting and heat protective apparel, reusable woven garments and gloves and arm guards. The Company believes disaggregation of revenue by geographic region and product line best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see table below). Net sales by geographic region and by product line are included below: Year Ended January 31, (in millions of dollars) 2024 2023 External Sales by Product Lines: Disposables $ 49.6 $ 55.2 Chemical 20.3 22.2 Fire 26.5 14.7 Gloves 2.2 2.3 High Visibility 6.6 5.8 High Performance Wear 6.9 5.0 Wovens 12.6 7.6 Consolidated external sales $ 124.7 $ 112.8 Year Ended January 31, (in millions of dollars) 2024 2023 External Sales by Region: USA $ 55.3 $ 49.0 Other foreign 9.9 7.2 Europe (UK) 16.3 8.3 Mexico 4.0 3.7 Asia 13.8 24.7 Canada 9.3 9.1 Latin America 16.1 10.8 Consolidated external sales $ 124.7 $ 112.8
Advertising Costs	Advertising costs are expensed as incurred and included in operating expenses on the consolidated statement of operations. Advertising and co-op costs amounted to $0.6 million and $0.5 million in FY24 and FY23.
Stock-Based Compensation	The Company records the cost of stock-based compensation plans based on the fair value of the award on the grant date. For awards that contain a vesting provision, the cost is recognized over the requisite service period (generally the vesting period of the equity award), which approximates the performance period. For awards based on services already rendered, the cost is recognized immediately.
Income Taxes	The Company is required to estimate its income taxes in each of the jurisdictions in which it operates as part of preparing the consolidated financial statements. This involves estimating the actual current tax in addition to assessing temporary differences resulting from differing treatments for tax and financial accounting purposes. These differences, together with net operating loss carryforwards and tax credits, are recorded as deferred tax assets or liabilities on the Company’s consolidated balance sheet. A judgment must then be made of the likelihood that any deferred tax assets will be recovered from future taxable income. A valuation allowance may be required to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines that it may not be able to realize all or part of its deferred tax asset in the future or that new estimates indicate that a previously recorded valuation allowance is no longer required, an adjustment to the deferred tax asset is charged or credited to income in the period of such determination. The Company recognizes tax positions that meet a “more likely than not” minimum recognition threshold. If necessary, the Company recognizes interest and penalties associated with tax matters as part of the income tax provision and would include accrued interest and penalties with the related tax liability in the consolidated balance sheets.
Foreign Operations and Foreign Currency Translation	The Company maintains manufacturing operations in Mexico, India, Argentina, New Zealand, Vietnam and the People’s Republic of China and can access independent contractors in China, Vietnam, Argentina and Mexico. It also maintains sales and distribution entities in India, Canada, the U.K., Chile, China, Argentina, Russia, Kazakhstan, Uruguay, Australia and Mexico. The Company is vulnerable to currency risks in these countries. The functional currency for the United Kingdom subsidiaries is the Pound; the trading company in China, the RMB; the Russian operation, the Russian Ruble; the New Zealand Dollar in New Zealand, and the Kazakhstan operation, the Kazakhstan Tenge. All other operations have the U.S. dollar as their functional currency. Pursuant to US GAAP, assets and liabilities of the Company’s foreign operations with functional currencies other than the U.S. dollar are translated at the exchange rate in effect at the balance sheet date, while revenues and expenses are translated at average rates prevailing during the periods. Translation adjustments are reported in accumulated other comprehensive loss, a separate component of stockholders’ equity. Cash flows are also translated at average translation rates for the periods; therefore, amounts reported on the consolidated statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.
Fair Value of Financial Instruments	US GAAP defines fair value, provides guidance for measuring fair value and requires certain disclosures utilizing a fair value hierarchy which is categorized into three levels based on the inputs to the valuation techniques used to measure fair value. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect management’s own assumptions. There were no foreign currency forward or hedge contracts at January 31, 2024 or January 31, 2023. The financial instruments of the Company classified as current assets or liabilities, including cash and cash equivalents, accounts receivable, short-term borrowings, borrowings under revolving credit facility, accounts payable and accrued expenses, are recorded at carrying value, which approximates fair value based on the short-term nature of these instruments.
Net Income Per Share	Net income per share is based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted net income per share is based on the weighted average number of common shares and common stock equivalents. The diluted net income per share calculation takes into account unvested restricted shares and the shares that may be issued upon the exercise of stock options, reduced by shares that may be repurchased with the funds received from the exercise, based on the average price during the fiscal year.
Recent Accounting Pronouncements	The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Income Taxes In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company plans to adopt the provisions of this guidance in conjunction with our Form 10-K for our fiscal year ending January 31, 2026. Segment Reporting In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This guidance requires a public entity to disclose for each reportable segment, on an interim and annual basis, the significant expense categories and amounts that are regularly provided to the chief operating decision-maker (“CODM”) and included in each reported measure of a segment’s profit or loss. Additionally, it requires a public entity to disclose the title and position of the individual or the name of the group or committee identified as the CODM. This guidance is effective for fiscal years beginning after December 31, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the guidance should be applied retrospectively to all periods presented in the financial statements, unless it is impracticable. The Company plans to adopt the provisions of this guidance in conjunction with our Form 10-K for the fiscal year ending January 31, 2025.

BUSINESS AND SUMMARY OF SIGNI_3

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jan. 31, 2024
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of contract liability	Contract liability – December 2, 2022 $ 1,560 Increases to contract liability 158 Decreases to contract liability (91 ) Contract liability – January 31, 2023 $ 1,627 Increases to contract liability 445 Decreases to contract liability (1,968 ) Contract liability – January 31, 2024 $ 104
Schedule of External Sales by product lines	Year Ended January 31, (in millions of dollars) 2024 2023 External Sales by Product Lines: Disposables $ 49.6 $ 55.2 Chemical 20.3 22.2 Fire 26.5 14.7 Gloves 2.2 2.3 High Visibility 6.6 5.8 High Performance Wear 6.9 5.0 Wovens 12.6 7.6 Consolidated external sales $ 124.7 $ 112.8
Schedule of External Sales by region	Year Ended January 31, (in millions of dollars) 2024 2023 External Sales by Region: USA $ 55.3 $ 49.0 Other foreign 9.9 7.2 Europe (UK) 16.3 8.3 Mexico 4.0 3.7 Asia 13.8 24.7 Canada 9.3 9.1 Latin America 16.1 10.8 Consolidated external sales $ 124.7 $ 112.8

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
INVENTORIES (Tables)	Jan. 31, 2024
INVENTORIES
Schedule of inventory	January 31, 2024 2023 Raw materials $ 27,417 $ 29,036 Work-in-process 668 952 Finished goods 29,719 32,855 Excess and obsolete adjustments (6,554 ) (4,668 ) $ 51,250 $ 58,176

PROPERTY AND EQUIPMENT NET (Tab

PROPERTY AND EQUIPMENT NET (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT NET (Tables)	Jan. 31, 2024
PROPERTY AND EQUIPMENT NET
Property and equipment	Useful Life January 31, in Years 2024 2023 Machinery and equipment 3-10 $ 10,773 $ 5,436 Furniture and fixtures 3-10 988 492 Leasehold improvements Lease term 2,388 2,094 Computer hardware and software 3 5,430 5,015 Land and building 20-30 7,625 9,508 27,203 22,546 Less accumulated depreciation and amortization (17,600 ) (14,406 ) Construction-in-progress 1,081 1,001 $ 10,685 $ 9,140

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Jan. 31, 2024
GOODWILL AND INTANGIBLE ASSETS
Schedule of changes in goodwill	2024 2023 Balance at February 1 $ 8,473 $ 871 Measurement period adjustment 1,447 ---- Acquisitions 3,749 7,602 Balance at January 31 $ 13,669 $ 8,473
Schedule of changes in intangible assets	2024 2023 Balance at February 1 $ 6,042 $ ---- Acquisitions 1,211 6,109 Amortization (423 ) (67 ) Balance at January 31 $ 6,830 $ 6,042
Schedule of intangible assets	January 31, 2024 January 31, 2023 Intangible Assets (in $000s) Weighted Average Life in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 15 $ 3,558 $ (267 ) $ 3,291 $ 3,283 $ (37 ) $ 3,246 Trade names and trademarks 15 1,773 (109 ) 1,664 1,333 (15 ) 1,318 Technological know-how 15 1,989 (114 ) 1,875 1,493 (15 ) 1,478 Total $ 7,320 $ (490 ) $ 6,830 $ 6,109 $ (67 ) $ 6,042

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
ACQUISITIONS (Tables)	Jan. 31, 2024
ACQUISITIONS
Schedule of fair values of assets and liabilities	Net working capital acquired (including cash of $0.1 million) $ 1,694 Property, plant and equipment 2,265 Customer relationships 275 Trade names and trademarks 440 Technological know-how 495 Goodwill 3,749 Total assets acquired 8,918 Less liabilities assumed (2,787 ) Net assets acquired $ 6,131 Current assets acquired (including cash of $2.2 million) $ 3,729 Property, plant and equipment 41 Customer relationships 3,283 Trade names and trademarks 1,333 Technological know-how 1,493 Goodwill 7,602 Total assets acquired 17,481 Less liabilities assumed (2,334 ) Net assets acquired $ 15,147
Schedule of Pro forma combined financial information	(in millions, except per share amount) Year Ended January 31, 2024 2023 Net sales $ 129.8 $ 122.3 Net income $ 5.8 $ 1.6 Basic earnings per share $ 0.79 $ 0.22 Diluted earnings per share $ 0.77 $ 0.21

STOCKHOLDERS EQUITY (Tables)

STOCKHOLDERS EQUITY (Tables)	12 Months Ended
STOCKHOLDERS EQUITY (Tables)	Jan. 31, 2024
STOCKHOLDERS EQUITY
Schedule of share-based compensation, restricted stock units award activity	Year Ended January 31, 2024 2023 2017 Plan: Total restricted stock and stock option programs $ 1,365 $ 1,491 Total income tax expense recognized for stock-based compensation arrangements $ 287 $ 313
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 36,475 56,065 92,540 $ 18.19 Vested (141,833 ) (30,370 ) (172,203 ) $ 10.33 Forfeited --- --- --- Outstanding at January 31, 2023 127,480 40,665 168,145 $ 22.95 Awarded 64,953 130,390 195,343 $ 14.19 Vested (71,202 ) (26,336 ) (97,538 ) $ 14.90 Forfeited (38,901 ) (31,829 ) (70,730 ) Outstanding at January 31, 2024 82,330 112,890 195,220 $ 16.61

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Jan. 31, 2024
INCOME TAXES
Schedule of Income Tax Expense (Benefit)	Years Ended January 31, Domestic and Foreign Pretax Income (Loss) 2024 2023 Domestic $ 8,648 $ 15,322 Foreign 708 (9,851 ) Total $ 9,356 $ 5,471 Years Ended January 31, 2024 2023 Income Tax Expense (Benefit) Current: Federal $ 17 $ 2 State and other taxes 58 68 Foreign 4,674 3,450 Total Current Tax Expense $ 4,749 $ 3,520 Deferred: Domestic ($186) ($756) Foreign (633 ) 834 Total Deferred Tax Expense (819 ) $ 78 Total Income Taxes $ 3,930 $ 3,598
Schedule of effective income tax rate reconciliation	Years Ended January 31, 2024 2023 Statutory rate 21.00 % 21.00 % State Income Taxes, Net of Federal Tax Benefit 0.49 % 0.05 % Adjustment to Deferred (23.26 )% 13.54 % GILTI 9.07 % 24.84 % Foreign Tax Credit – GILTI (2.42 )% (14.86 )% Section 250 Deduction (4.92 )% (15.74 )% Permanent Differences 0.20 % 0.07 % Valuation Allowance-Deferred Tax Asset 33.29 % 6.41 % Foreign Tax Credit (15.24 )% (9.74 )% Section 78 Gross-up 0.77 % 6.64 % Argentina Flow Through Loss 7.20 % 1.09 % Withholding Taxes 5.72 % 36.55 % Foreign Rate Differential 18.25 % 2.11 % Change in State Apportionment Rate (1.48 )% (1.38 )% Foreign employee benefits (1.58 )% (3.58 )% Foreign Dividends Paid to U.S. 25.69 % 73.01 % Foreign Dividends Received Deduction (25.69 )% (73.01 )% Earnout Adjustment (5.70 )% --- Other 0.62 % (1.25 )% Effective Rate 42.01 % 65.74 %
Schedule of deferred tax assets	Years Ended January 31, 2024 2023 Deferred tax assets: Inventories $ 1,545 $ 1,147 US tax loss carryforwards, including work opportunity credit 167 186 Accounts receivable and accrued rebates 295 278 Accrued compensation and other 441 123 India reserves - US deduction 24 22 Equity based compensation 346 1,178 Foreign tax credit carry-forward 4,548 3,123 State and local carry-forwards 1,256 18 Depreciation and amortization (1,846 ) (155 ) Prepaid expenses (253 ) (175 ) Right-of-use asset (1,590 ) (697 ) Operating lease liability 1,672 732 Foreign carry-forwards 1,102 438 Withholding taxes (383 ) (769 ) Other 351 107 Deferred tax asset 7,675 5,556 Less valuation allowance (6,675 ) (3,561 ) Net deferred tax asset $ 1,000 $ 1,995
Schedule of Balance sheet classification	January 31, Balance sheet classification 2024 2023 Long-term deferred tax asset $ 3,097 $ 2,764 Long-term deferred tax liability $ 2,097 $ 769
Schedule of income tax benefit carryforward	Gross Carryforward Benefit Amount Valuation Allowance Expiration Beginning In State operating loss carryforwards $ 20,132 $ 1,256 $ (1,025 ) 2028 Foreign tax credit carryforwards 4,548 (4,548 ) 2025 Federal credit carryforwards 167 - 2035 Mexico operating loss carryforwards $ 1,199 360 (360 ) 2033 Chile operating loss carryforwards $ 2,414 652 (652 ) Indefinite UK operating loss carryforwards $ 361 90 (90 ) Indefinite Total $ 7,073 $ (6,675 )

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	12 Months Ended
NET INCOME PER SHARE (Tables)	Jan. 31, 2024
Net income per common share:
Schedule of earnings per share, basic and diluted	Years Ended January 31, (000’s except share information) 2024 2023 Numerator – Net Income $ 5,425 $ 1,873 Denominator for basic net income per share (weighted-average shares which reflect 1,358,208 and 1,330,694 treasury shares at January 31, 2024 and 2023, respectively) 7,352,356 7,562,187 Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options 187,349 175,776 Denominator for diluted net income per share (adjusted weighted average shares) 7,539,705 7,737,963 Basic net income per share $ 0.74 $ 0.25 Diluted net income per share $ 0.72 $ 0.24

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Jan. 31, 2024
Commitments and contingencies
Schedule of lease rental cost	Classification Year Ended January 31, 2024 Year Ended January 31, 2023 Operating lease cost Cost of goods sold $ 1,092 $ 272 Operating expenses $ 1,402 $ 1,035 Short-term lease cost $ 221 $ 169
Weighted-average lease terms and discount rates	January 31, 2024 January 31, 2023 Weighted-average remaining lease term (years) Operating leases 8.0 8.2 Weighted-average discount rate Operating leases 10.4 % 5.25 %
Supplemental cash flow information related to leases	Cash paid for amounts included in the measurement of lease liabilities: Year Ended January 31, 2024 Year Ended January 31, 2023 Operating cash flows from operating leases $ 1,932 $ 1,436 Leased assets obtained in exchange for new operating lease liabilities $ 5,591 $ 1,148
Maturity of lease liabilities	Year ending January 31, Operating Leases 2025 $ 2,164 2026 2,092 2027 1,876 2028 1,805 2029 1,490 Thereafter 5,547 Total lease payments 14,974 Less: Interest 3,689 Present value of lease liability $ 11,285

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
SEGMENT REPORTING (Tables)	Jan. 31, 2024
SEGMENT REPORTING
Schedule of revenue from external customers geographic areas	2024 2023 Domestic $ 55.3 $ 49.0 International 69.4 63.8 Total $ 124.7 $ 112.8
Segment information	Year Ended January 31, 2024 2023 (in millions of dollars) Net Sales USA Operations (including Corporate) $ 60.9 $ 53.8 Other foreign 14.0 9.5 Europe (UK) 16.4 8.3 Mexico 6.7 5.2 Asia 46.2 63.7 Canada 9.3 9.0 Latin America 16.3 10.9 Less intersegment sales (45.1 ) (47.6 ) Consolidated sales $ 124.7 $ 112.8 External Sales USA Operations (including Corporate) $ 55.3 $ 49.0 Other foreign 9.9 7.2 Europe (UK) 16.3 8.3 Mexico 4.0 3.7 Asia 13.8 24.8 Canada 9.3 9.0 Latin America 16.1 10.8 Consolidated external sales $ 124.7 $ 112.8 Intersegment Sales USA Operations (including Corporate) $ 5.6 $ 4.8 Other foreign 4.1 2.4 Europe (UK) 0.1 ---- Mexico 2.7 1.5 Asia 32.4 38.9 Canada — — Latin America 0.2 — Consolidated intersegment sales $ 45.1 $ 47.6 Year Ended January 31, 2024 2023 (in millions of dollars) Operating Profit (Loss): USA Operations (including Corporate) $ (3.5 ) $ (6.4 ) Other foreign 2.0 0.4 Europe (UK) 0.1 (1.3 ) Mexico (2.1 ) (1.4 ) Asia 4.6 10.9 Canada 1.5 1.5 Latin America 2.8 1.9 Less intersegment (profit) loss 0.3 (0.1 ) Consolidated operating profit $ 5.7 $ 5.5 Depreciation and Amortization Expense: USA Operations (including Corporate) $ 0.8 $ 0.6 Other foreign 0.1 0.1 Europe (UK) 0.4 ---- Mexico 0.2 0.2 Asia 0.5 0.5 Canada 0.1 0.1 Latin America ---- ---- Less intersegment ---- ---- Consolidated depreciation and amortization expense $ 2.1 $ 1.5 Year Ended January 31, 2024 2023 (in millions of dollars) Total Assets: USA Operations (including Corporate) $ 92.2 $ 94.1 Other foreign 20.3 10.4 Europe (UK) 30.0 12.5 Mexico 12.1 5.5 Asia 51.6 55.8 Canada 8.5 6.0 Latin America 15.0 10.6 Less intersegment (76.0 ) (52.0 ) Consolidated assets $ 153.7 $ 142.9 Total Assets Less Intersegment: USA Operations (including Corporate) $ 47.1 $ 65.2 Other foreign 19.6 9.2 Europe (UK) 27.2 12.5 Mexico 10.2 5.3 Asia 29.0 35.6 Canada 8.3 5.8 Latin America 12.3 9.3 Consolidated assets $ 153.7 $ 142.9 Property and Equipment: USA Operations (including Corporate) $ 2.3 $ 3.3 Other foreign 2.7 0.2 Europe (UK) 0.1 0.1 Mexico 2.8 2.0 Asia 2.6 2.4 Canada ---- 0.8 Latin America 0.2 0.2 Less intersegment ---- 0.1 Consolidated long-lived assets $ 10.7 $ 9.1 Capital Expenditures: USA Operations (including Corporate) $ 0.5 $ 1.2 Other foreign ---- ---- Europe (UK) ---- ---- Mexico 1.0 - Asia 0.5 0.6 Canada ---- ---- Latin America $ 0.1 0.2 Consolidated capital expenditure $ 2.1 $ 2.0

BUSINESS AND SUMMARY OF SIGNI_4

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	2 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Opening Balance	$ 1,627,000	$ 1,560,000
Increases to contract liability	445,000	158,000
Decreases to contract liability	(1,968,000)	(91,000)
Closing Balance	$ 104,000	$ 1,627,000

BUSINESS AND SUMMARY OF SIGNI_5

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Net sales	$ 124,688	$ 112,846
Asia
Net sales	13,800	24,700
Latin America
Net sales	16,100	10,800
Mexico
Net sales	4,000	3,700
Other Foreign Member
Net sales	9,900	7,200
Europe UK
Net sales	16,300	8,300
Consolidated External Sales By Region
Net sales	124,700	112,800
USA [Member]
Net sales	55,300	49,000
Canada
Net sales	9,300	9,100
Fire Member
Net sales	26,500	14,700
Disposables Member
Net sales	49,600	55,200
Chemical Member
Net sales	20,300	22,200
Gloves Member
Net sales	2,200	2,300
High Visibility Member
Net sales	6,600	5,800
High Performance Wear
Net sales	6,900	5,000
Wovens
Net sales	12,600	7,600
Consolidated external sales
Net sales	$ 124,700	$ 112,800

BUSINESS AND SUMMARY OF SIGNI_6

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Shipping and handling costs	$ 3.4	$ 3.2
Advertising cost	$ 0.6	$ 0.5

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
INVENTORIES
Raw materials	$ 27,417	$ 29,036
Work-in-process	668	952
Finished goods	29,719	32,855
Excess and obsolete reserves	(6,554)	(4,668)
Inventories, net	$ 51,250	$ 58,176

PROPERTY AND EQUIPMENT NET (Det

PROPERTY AND EQUIPMENT NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Property, plant and equipment, gross	$ 27,203	$ 22,546
Construction-in-progress	1,081	1,001
Less accumulated depreciation and amortization	(17,600)	(14,406)
Property, plant and equipment, net	10,685	9,140
Land and Building
Property, plant and equipment, gross	7,625	9,508
Machinery and Equipment
Property, plant and equipment, gross	10,773	5,436
Furniture and Fixtures
Property, plant and equipment, gross	988	492
Leasehold Improvements
Property, plant and equipment, gross	$ 2,388	2,094
Property, plant and equipment, useful life	Lease term
Computer Hardware and Software
Property, plant and equipment, gross	$ 5,430	$ 5,015
Property, plant and equipment, useful life	3 years
Maximum \| Land and Building
Property, plant and equipment, useful life	30 years
Maximum \| Machinery and Equipment
Property, plant and equipment, useful life	10 years
Maximum \| Furniture and Fixtures
Property, plant and equipment, useful life	10 years
Minimum \| Land and Building
Property, plant and equipment, useful life	20 years
Minimum \| Machinery and Equipment
Property, plant and equipment, useful life	3 years
Minimum \| Furniture and Fixtures
Property, plant and equipment, useful life	3 years

PROPERTY AND EQUIPMENT NET (D_2

PROPERTY AND EQUIPMENT NET (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Property, plant and equipment
Depreciation and amortization expense	$ 1.9	$ 1.4

INVESTMENTS (Details Narrative)

INVESTMENTS (Details Narrative) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	12 Months Ended
INVESTMENTS (Details Narrative) - USD ($) $ in Thousands	Oct. 26, 2022	Oct. 18, 2021	Apr. 28, 2022	Jan. 31, 2024	Jan. 31, 2023	Sep. 15, 2023	May 19, 2023
Recognized losses				$ 600	$ 400
Investment amount				$ 4,719	$ 5,354
Convertible series A shares issued				0	0
Investment Agreement [Member] \| Bodytrak's [Member]
Payment of related party shares exchanged		$ 2,800
Percentages of total share capital		11.43%
Ownership percentage	22.50%
Additional shares of series A, shares	254,452
Additional shares of series A, amount	$ 1,200
Investment amount							$ 1,900
Investment funding amount							600
Additional investment funding amount						$ 600	$ 900
Series A shares acquired, shares			381,679
Series A shares acquired, amount			$ 1,900
Convertible series A shares issued		508,905

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
GOODWILL AND INTANGIBLE ASSETS
Balance at February 1	$ 8,473	$ 871
Measure period adjustment	1,447	0
Acquisitions	3,749	7,602
Balance at January 31	$ 13,669	$ 8,473

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
GOODWILL AND INTANGIBLE ASSETS
Balance at February 1	$ 6,042	$ 0
Acquisitions	1,211	6,109
Amortization expense	(423)	(67)
Balance at January 31	$ 6,830	$ 6,042

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Gross carrying amount	$ 7,320	$ 6,109
Accumulated Amortization	490	67
Net Carrying Amount	6,830	6,042
Customer Relationships Member
Gross carrying amount	3,558	3,283
Accumulated Amortization	267	37
Net Carrying Amount	$ 3,291	3,246
Weighted Average Life in Years	15 years
Trade names and trademarks
Gross carrying amount	$ 1,773	1,333
Accumulated Amortization	109	15
Net Carrying Amount	$ 1,664	1,318
Weighted Average Life in Years	15 years
Technological know-how
Gross carrying amount	$ 1,989	1,493
Accumulated Amortization	114	15
Net Carrying Amount	$ 1,875	$ 1,478
Weighted Average Life in Years	15 years

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets (Details Narrative) $ in Millions	12 Months Ended
	Jan. 31, 2024 USD ($)
GOODWILL AND INTANGIBLE ASSETS
Deferred tax liabilities associated with finite lived intangibles	$ 1.4
Intangible asset amortization expense	$ 0.5

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Total assets acquired	$ 1,000	$ 1,995
Acquisition Of Eagle Member
Total assets acquired	8,918
Less liabilities assumed	(2,787)
Net assets acquired	6,131
Acquisition Of Eagle Member \| Trade names and trademarks
The Fair Values Of The Assets And Liabilities	440
Acquisition Of Eagle Member \| Technological know-how
The Fair Values Of The Assets And Liabilities	495
Acquisition Of Eagle Member \| Customer Relationships Member
The Fair Values Of The Assets And Liabilities	275
Acquisition Of Eagle Member \| Property, plant and equipment
The Fair Values Of The Assets And Liabilities	2,265
Acquisition Of Eagle Member \| Goodwill
The Fair Values Of The Assets And Liabilities	3,749
Acquisition Of Eagle Member \| Net working capital
The Fair Values Of The Assets And Liabilities	$ 1,694

ACQUISITIONS (Details 1)

ACQUISITIONS (Details 1) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Total assets acquired	$ 1,000	$ 1,995
Acquisition Of Pacific Member
Total assets acquired	17,481
Less liabilities assumed	(2,334)
Net assets acquired	15,147
Acquisition Of Pacific Member \| Trade names and trademarks
The Fair Values Of The Assets And Liabilities	1,333
Acquisition Of Pacific Member \| Technological know-how
The Fair Values Of The Assets And Liabilities	1,493
Acquisition Of Pacific Member \| Customer Relationships Member
The Fair Values Of The Assets And Liabilities	3,283
Acquisition Of Pacific Member \| Net working capital
The Fair Values Of The Assets And Liabilities	3,729
Acquisition Of Pacific Member \| Goodwill
The Fair Values Of The Assets And Liabilities	7,602
Acquisition Of Pacific Member \| Property, plant and equipment
The Fair Values Of The Assets And Liabilities	$ 41

ACQUISITIONS (Details 2)

ACQUISITIONS (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Net sales	$ 5,425	$ 1,873
Pro forma combined financial information [Member]
Net sales	129,800		$ 122,300
Net income	$ 5,800		$ 1,600
Basic earnings per share	$ 0.79		$ 0.22
Diluted earnings per share	$ 0.77		$ 0.21

ACQUISITIONS (Details Narrative

ACQUISITIONS (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
ACQUISITIONS (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2024	Apr. 30, 2024	Jan. 31, 2024	Apr. 30, 2023	Jan. 31, 2023	Nov. 30, 2023	Dec. 02, 2022
Revenue exceeds			$ 124,688		$ 112,846
Deferred tax liabilities associated with finite lived intangibles			1,400
Acquisition Of Eagle Member
Revenue exceeds		$ 630		$ 6,000
Total acquisition-related costs			500		$ 600
Earnout payment			320
Deferred tax liabilities associated with finite lived intangibles			$ 1,400
Cash transaction							$ 1,050
Description of revenue threshold		the estimated amount of the earnout payment developed using a Monte Carlo simulation is $0.6 million. The adjustment to the accrued earnout payment of $2.5 million was recorded in FY24, and reflected as a reduction in operating expenses
Acquisition Of Eagle Member \| Trade names and trademarks
Property, plant and equipment, useful life			15 years
Acquisition Of Eagle Member \| Technological know-how
Property, plant and equipment, useful life			17 years
Acquisition Of Eagle Member \| Customer Relationships Member
Property, plant and equipment, useful life			15 years
Acquisition Of Pacific Member
Revenue fall	$ 11,100
Cash transaction						$ 8,500
Description of Acquisition of eagle	The estimated amount of the reduction to the holdback to be paid by the Company is less than $0.1 million. The estimate was developed using a Monte Carlo simulation. If Pacific exceeds the revenue target of NZ$11.1 million, Pacific will not receive any additional consideration
Acquisition Of Pacific Member \| Trade names and trademarks
Property, plant and equipment, useful life			15 years
Acquisition Of Pacific Member \| Technological know-how
Property, plant and equipment, useful life			10 years
Acquisition Of Pacific Member \| Customer Relationships Member
Property, plant and equipment, useful life			14 years

LongTerm Debt (Details Narrativ

LongTerm Debt (Details Narrative) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
LongTerm Debt (Details Narrative) - USD ($) $ in Thousands	Dec. 05, 2014	Dec. 31, 2014	Jan. 31, 2024	Jan. 31, 2023	Jun. 25, 2020	Dec. 19, 2016
Annual unused line of credit commitment fee, payable quarterly			The Loan Agreement provides for an annual unused line of credit commitment fee, payable quarterly, of 0.25%, based on the difference between the total credit line commitment and the average daily amount of credit outstanding under the facility during the preceding quarter
Granted Lender a first priority perfected security interest					65%
Short term borrowings			$ 298	$ 405
HSBC Bank [Member]
Amendments in line of credit facility		a one-year extension of the maturity date of the existing financing facility to December 19, 2016
Increase in line of credit facility		$ 1,900				$ 2,300
Decrease in annual interest rate		3.46%				3%
Note payable	$ 600
Bank of New Zealand [Member]
Description of term loan			The first term loan of 1,500,000 New Zealand dollars matures on December 17, 2025, carries an interest rate of 2.3% per annum and requires monthly payments of $19,350.27 New Zealand dollars
Bank of New Zealand [Member] \| January 31, 2024 [Member]
Short term borrowings			$ 300
Long term borrowings			$ 700
Loan Agreement \| Bank Of America
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. 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
Revolving credit facility			$ 12,500
Credit sub facility			$ 5,000
Credit facility mature date			Jun. 25, 2025
Loan Agreement Amendment No 4 \| Bank Of America
Warranties to the Lender in the Loan Agreement			the Lender and the Company agreed to, among other things, (i) extend the expiration date of the credit facility to March 28, 2029, (ii) increase the availability under the revolving credit facility to $40.0 million with an accordion feature providing for the potential funding of an additional $10.0 million, (iii) remove the borrowing base component of the credit facility; and (iv) modify the interest rate based on Daily SOFR plus the Applicable Rate
Description of additional indebtedness			The Fourth Amendment provides for additional indebtedness or the assumption of existing indebtedness for acquisitions of foreign subsidiaries (not to exceed $10.0 million in USD) and increased the size of Permitted Acquisitions, without prior approval from the Lender, to $17.5 million per occurrence and $35.0 million in the aggregate
Maximum \| Loan Agreement
Aggregate cumulative consideration			$ 7,500
Revolving credit facility			$ 25,000
Maximum \| Loan Agreement Amendment No 4 \| Bank Of America
Constituting SOFR margin range			2%
Minimum \| Loan Agreement
Revolving credit facility			$ 12,500
Minimum \| Loan Agreement Amendment No 4 \| Bank Of America
Constituting SOFR margin range			1.25%

Concentration of Risk (Details

Concentration of Risk (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Cash balances in banks in the United States of America	$ 3.3
Cash balances in foreign bank accounts	22
Uninsured amount	$ 24.4
Major Customer [Member]
Concentration risk of net sales	10%	10%
Major Supplier [Member]
Concentration risk of net sales	10%	10%

Stockholders Equity (Details)

Stockholders Equity (Details) - 2017 Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Total restricted stock and stock option programs	$ 1,365	$ 1,491
Total income tax benefit recognized for stock-based compensation arrangements	$ 287	$ 313

Stockholders Equity (Details 1)

Stockholders Equity (Details 1) - $ / shares	12 Months Ended
Stockholders Equity (Details 1) - $ / shares	Jan. 31, 2024	Jan. 31, 2023
Performance Based [Member]
Outstanding at beginning balance	127,480	232,838
Awarded	64,953	36,475
Vested	(71,202)	(141,833)
Forfeited	(38,901)
Outstanding at ending balance	82,330	127,480
Service Based [Member]
Outstanding at beginning balance	40,665	14,970
Awarded	130,390	56,065
Vested	(26,336)	(30,370)
Forfeited	(31,829)
Outstanding at ending balance	112,890	40,665
Weighted Average Grant Date Fair Value [Member]
Weighted Average Grant Date Fair Value, Outstanding at beginning balance	$ 22.95	$ 20.89
Weighted Average Grant Date Fair Value, Awarded	14.19	18.19
Weighted Average Grant Date Fair Value, Vested	14.90	10.33
Weighted Average Grant Date Fair Value, Outstanding at ending balance	$ 16.61	$ 22.95
Total [Member]
Outstanding at beginning balance	168,145	247,808
Awarded	195,343	92,540
Vested	(97,538)	(172,203)
Forfeited	(70,730)
Outstanding at ending balance	195,220	168,145

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Millions				1 Months Ended	12 Months Ended
	Dec. 01, 2022	Apr. 07, 2022	Jul. 06, 2021	Jun. 16, 2021	Jan. 31, 2024	Jan. 31, 2023	Feb. 17, 2021
Common stock, shares authorized					20,000,000	20,000,000
2017 Plan [Member]
Common stock, shares authorized					840,000
Price per share				$ 0.01
Repurchase of outstanding common stock				480,000
Unrecognized stock-based compensation expense					$ 1
Stock Repurchase Program [Member]
Remaining value of repurchase of outstanding common stock					$ 5		$ 5
Additional shares of common oitstanding	5,000,000	5,000,000	5,000,000
Repurchase of outstanding common stock					27,514
Repurchase of outstanding common stock, amount					$ 0.3

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Pretax income (loss)	$ 9,356	$ 5,471
Income Tax Expense (Benefit) Current:
Federal	17	2
State and other taxes	58	68
Foreign	4,674	3,450
Current income tax expense (benefit)	4,749	3,520
Income Tax Expense (Benefit) Deferred:
Domestic	(186)	(756)
Foreigns	(633)	834
Total Deferred Tax Expense	(819)	78
Total	3,930	3,598
Domestic Tax Authority [Member]
Pretax income (loss)	8,648	15,322
Foreign Tax Authority [Member]
Pretax income (loss)	$ 708	$ (9,851)

INCOME TAXES (Details 1)

INCOME TAXES (Details 1)	12 Months Ended
INCOME TAXES (Details 1)	Jan. 31, 2024	Jan. 31, 2023
INCOME TAXES
Statutory rate	21%	21%
State Income Taxes, Net of Federal Tax Benefit	0.49%	0.05%
Adjustment to Deferred	(23.26%)	13.54%
GILTI	9.07%	24.84%
Foreign Tax Credit - GILTI	(2.42%)	(14.86%)
Section 250 Deduction	(4.92%)	(15.74%)
Permanent Differences	0.20%	0.07%
Valuation Allowance-Deferred Tax Asset	33.29%	6.41%
Foreign Tax Credit	(15.24%)	(9.74%)
Section 78 Gross-up	0.77%	6.64%
Argentina Flow Through Loss	7.20%	1.09%
Withholding Taxes	5.72%	36.55%
Foreign Rate Differential	18.25%	2.11%
Change in State Apportionment Rate	(1.48%)	(1.38%)
Foreign employee benefits	(1.58%)	(3.58%)
Foreign Dividends Paid to U.S.	25.69%	73.01%
Foregin Dividends Received Deduction	(25.69%)	(73.01%)
Earnout Adjustment	(5.70%)
Other	0.62%	(1.25%)
Effective rate	42.01%	65.74%

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Deferred tax assets:
Inventories	$ 1,545	$ 1,147
US tax loss carryforwards, including work opportunity credit	167	186
Accounts receivable and accrued rebates	295	278
Accrued compensation and other	441	123
India reserves - US deduction	24	22
Equity based compensation	346	1,178
Foreign tax credit carry-forward	4,548	3,123
State and local carry-forwards	1,256	18
Depreciation and amortization	(1,846)	(155)
Prepaid expenses	(253)	(175)
Right-of-use asset	(1,590)	(697)
Operating lease liability	1,672	732
Foreign carry-forwards	1,102	438
Withholding taxes	(383)	(769)
Other	351	107
Deferred tax asset	7,675	5,556
Less valuation allowance	(6,675)	(3,561)
Net deferred tax asset	$ 1,000	$ 1,995

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
INCOME TAXES
Long-term deferred tax liability	$ 3,097	$ 2,764
Long-term deferred tax asset	$ 2,097	$ 769

INCOME TAXES (Details 4)

INCOME TAXES (Details 4) $ in Thousands	12 Months Ended
INCOME TAXES (Details 4) $ in Thousands	Jan. 31, 2024 USD ($)
State operating loss carryforwards
Gross Carryforward	$ 20,132
Benefit Amount	1,256
Valuation Allowance	$ (1,025)
Expiration Beginning In	2028
Foreign tax credit carryforwards
Benefit Amount	$ 4,548
Valuation Allowance	$ (4,548)
Expiration Beginning In	2025
Federal credit carryforwards
Benefit Amount	$ 167
Valuation Allowance	$ 0
Expiration Beginning In	2035
Mexico operating loss carryforwards
Gross Carryforward	$ 1,199
Benefit Amount	360
Valuation Allowance	$ (360)
Expiration Beginning In	2033
Total [Member]
Benefit Amount	$ 7,073
Valuation Allowance	(6,675)
Chile operating loss carryforwards Member
Gross Carryforward	2,414
Benefit Amount	652
Valuation Allowance	$ (652)
Expiration Beginning In	Indefinite
UK operating loss carryforwards Member
Gross Carryforward	$ 361
Benefit Amount	90
Valuation Allowance	$ (90)
Expiration Beginning In	Indefinite

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Withholding tax expense	$ 400
Pretax income (loss)	9,356	$ 5,471
Change in valuation allowance	$ 6,700		$ 3,600
Description of Income taxes	the Company repatriated $4.5 million and $7.0 million from Canada and China, respectively. The Company also identified an additional $3.8 million in excess cash in its Chinese operations for which it plans to repatriate in the future
Provision For Income Taxes Member
Pretax income (loss)	$ 11,400	$ 19,000

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Net income per common share:
Net sales	$ 5,425	$ 1,873
Denominator for basic net income per share	7,352,356	7,562,187
Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options	187,349	175,776
Denominator for diluted net income per share (adjusted weighted average shares)	7,539,705	7,737,963
Basic net income per share	$ 0.74	$ 0.25
Diluted net income per share	$ 0.72	$ 0.24

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Short-term lease cost	$ 221	$ 169
Operating expenses	45,200	40,308
Cost of goods sold	73,496	66,997
Operating Lease [Member]
Operating expenses	1,092	272
Cost of goods sold	$ 1,402	$ 1,035

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details 1)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details 1)	Jan. 31, 2024	Jan. 31, 2023
Commitments and contingencies
Weighted-average remaining lease term (years) operating leases	8 years	8 years 2 months 12 days
Weighted-average discount rate operating leases	10.40%	5.25%

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Commitments and contingencies
Operating cash flows from operating leases	$ 1,932	$ 1,436
Leased assets obtained in exchange for new operating lease liabilities	$ 5,591	$ 1,148

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES (Details 3) $ in Thousands	Jan. 31, 2024 USD ($)
Commitments and contingencies
2025	$ 2,164
2026	2,092
2027	1,876
2028	1,805
2029	1,490
Thereafter	5,547
Total lease payments	14,974
Less: interest	3,689
Present value of lease liability	$ 11,285

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Millions	12 Months Ended
SEGMENT REPORTING (Details) - USD ($) $ in Millions	Jan. 31, 2024	Jan. 31, 2023
Total [Member]
Net sales from continuing operations	$ 124.7	$ 112.8
USA [Member]
Net sales from continuing operations	55.3	49
International
Net sales from continuing operations	$ 69.4	$ 63.8

SEGMENT REPORTING (Details 1)

SEGMENT REPORTING (Details 1) - USD ($)	12 Months Ended
SEGMENT REPORTING (Details 1) - USD ($)	Jan. 31, 2024	Jan. 31, 2023
Operating Profit (Loss)	$ 5,993,000	$ 5,541,000
Total assets	153,745,000	142,936,000
Property and Equipment	10,685,000	9,140,000
Total assets	(153,745,000)	(142,936,000)
Asia
Net sales	46,200,000	63,700,000
External sales	13,800,000	24,800,000
Intersegment sales	32,400,000	38,900,000
Operating Profit (Loss)	4,600,000	10,900,000
Depreciation and Amortization Expense	500,000	500,000
Total assets	51,600,000	55,800,000
Total Assets Less Intersegment	29,000,000	35,600,000
Property and Equipment	2,600,000	2,400,000
Capital Expenditures	500,000	600,000
Total assets	(51,600,000)	(55,800,000)
Latin America
Net sales	16,300,000	10,900,000
External sales	16,100,000	10,800,000
Intersegment sales	200,000	0
Operating Profit (Loss)	2,800,000	1,900,000
Total assets	15,000,000	10,600,000
Total Assets Less Intersegment	12,300,000	9,300,000
Property and Equipment	0	200,000
Capital Expenditures	100,000	200,000
Total assets	(15,000,000)	(10,600,000)
Intersegment [Member]
Net sales	(45,100,000)	(47,600,000)
Operating Profit (Loss)	300,000	(100,000)
Total assets	76,000,000	52,000,000
Property and Equipment	0	100,000
Total assets	(76,000,000)	(52,000,000)
USA
Net sales	60,900,000	53,800,000
External sales	55,300,000	49,000,000
Intersegment sales	5,600,000	4,800,000
Operating Profit (Loss)	(3,500,000)	(6,400,000)
Depreciation and Amortization Expense	800,000	600,000
Total assets	92,200,000	94,100,000
Total Assets Less Intersegment	47,100,000	65,200,000
Property and Equipment	2,300,000	3,300,000
Capital Expenditures	500,000	1,200,000
Total assets	(92,200,000)	(94,100,000)
Mexico
Net sales	6,700,000	5,200,000
External sales	4,000,000	3,700,000
Intersegment sales	2,700,000	1,500,000
Operating Profit (Loss)	(2,100,000)	(1,400,000)
Depreciation and Amortization Expense	200,000	200,000
Total assets	12,100,000	5,500,000
Total Assets Less Intersegment	10,200,000	5,300,000
Property and Equipment	2,800,000	2,000,000
Capital Expenditures	1,000,000	0
Total assets	(12,100,000)	(5,500,000)
Canada
Net sales	9,300,000	9,000,000
External sales	9,300,000	9,000,000
Operating Profit (Loss)	1,500,000	1,500,000
Depreciation and Amortization Expense	100,000	100,000
Total assets	8,500,000	6,000,000
Total Assets Less Intersegment	8,300,000	5,800,000
Property and Equipment	0	800,000
Total assets	(8,500,000)	(6,000,000)
Total Segment [Member]
Net sales	124,700,000	112,800,000
External sales	124,700,000	112,800,000
Intersegment sales	45,100,000	47,600,000
Operating Profit (Loss)	5,700,000	5,500,000
Depreciation and Amortization Expense	210,000	1,500,000
Total assets	153,700,000	142,900,000
Total Assets Less Intersegment	153,700,000	142,900,000
Property and Equipment	10,700,000	9,100,000
Capital Expenditures	210,000	2,000,000
Total assets	(153,700,000)	(142,900,000)
Other Foreign Member
Net sales	14,000,000	9,500,000
External sales	9,900,000	7,200,000
Intersegment sales	4,100,000	2,400,000
Operating Profit (Loss)	2,000,000	400,000
Depreciation and Amortization Expense	100,000	100,000
Total assets	20,300,000	10,400,000
Total Assets Less Intersegment	19,600,000	9,200,000
Property and Equipment	2,700,000	200,000
Total assets	(20,300,000)	(10,400,000)
Europe UK
Net sales	16,400,000	8,300,000
External sales	16,300,000	8,300,000
Intersegment sales	100,000	0
Operating Profit (Loss)	100,000	(1,300,000)
Depreciation and Amortization Expense	400,000	0
Total assets	30,000,000	12,500,000
Total Assets Less Intersegment	27,200,000	12,500,000
Property and Equipment	100,000	100,000
Total assets	$ (30,000,000)	$ (12,500,000)

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($) $ in Millions	Apr. 02, 2024	Feb. 05, 2024
Italy and Romania-based Jolly Scarpe [Member]
Acquisition of Real Estate with cash transaction		$ 9.3
Lakeland Global Sefety Ltd [Member]
Acquisition of Real Estate with cash transaction	$ 16.7