Financial Analysis

12. Commitments and Contingencies Purchase Obligations On January 31, 2026 and January 31, 2025 , the Company had approximately $3.3 million and $4.7 million in purchase orders outstanding, respectively. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Twelve Months Ended January 31, 2026 2025 (in thousands) Total revenue recognized at a point in time $ 39,606 $ 45,189 Total revenue recognized over time $ 1,341 $ 1,674 Total revenue from contracts with customers $ 40,947 $ 46,863 Twelve Months Ended January 31, 2026 2025 Revenue from contracts with customers: (in thousands) United States $ 3,005 $ 2,478 China 10,897 17,720 Norway 21,110 21,956 Turkey 2,116 634 Singapore 366 Japan 1,121 340 Other 2,698 3,369 Total revenue from contracts with customers $ 40,947 $ 46,863 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

13. Stock Option Plans At January 31, 2026 , the Company had stock-based compensation plans as described in more detail below. The total compensation expense related to stock-based awards granted under these plans during fiscal 2026 and 2025 was approximately $1.6 million and $235,000, respectively. The Company recognizes stock-based compensation costs net of a forfeiture rate for only those awards expected to vest over the requisite service period of the award. The Company estimates the forfeiture rate based on its historical experience regarding employee terminations and forfeitures. The fair value of each option award is estimated as of the date of grant using a Black-Scholes-Merton option pricing formula. Expected volatility is based on historical volatility of the Companys stock over a preceding period commensurate with the expected term of the option. The expected term is based upon the simplified method. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing formula since the Company does not pay dividends and has not paid any dividends since its incorporation. The weighted average grant-date fair value of options granted during fiscal 2026 and 2025 was $6.38 and $4.24, respectively. The assumptions for the periods indicated are noted in the following table. Weighted average Black-Scholes-Merton fair value assumptions Year Ended Jan …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

8. Intangible Assets Intangible assets consisted of the following: January 31, 2026 January 31, 2025 Weighted Average Gross Net Gross Net Life at Carrying Accumulated Carrying Carrying Accumulated Carrying 1/31/2026 Amount Amortization Amount Amount Amortization Amount (in thousands) (in thousands) Proprietary rights 3.0 $ 7,472 $ (5,911 ) 1,561 $ 7,472 $ (5,501 ) 1,971 Customer relationships 4,884 (4,884 ) 4,884 (4,884 ) Patents 0.6 2,540 (2,362 ) 178 2,540 (2,269 ) 271 Trade name 0.3 134 (130 ) 4 134 (121 ) 13 Other 0.1 498 (488 ) 10 481 (428 ) 53 Amortizable intangible assets $ 15,528 $ (13,775 ) $ 1,753 $ 15,511 $ (13,203 ) $ 2,308 The Company did not record impairment of intangible assets during fiscal years 2026 and 2025 . Aggregate amortization expense was approximately $572,000 and $638,000 for fiscal 2026 and 2025 , respectively. As of January 31, 2026 , future estimated amortization expense related to amortizable intangible assets is estimated to be (in thousands): For fiscal year ending January 31: 2027 $ 391 2028 312 2029 213 2030 213 2031 213 Thereafter 411 Total $ 1,753 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"11. Income Taxes Year Ended January 31, 2026 2025 (in thousands) Income (loss) before income taxes is attributable to the following jurisdictions: Domestic $ (8,333 ) $ (6,049 ) Foreign 11,234 13,107 Total $ 2,901 $ 7,058 The components of income tax expense (benefit) were as follows: Current: Domestic $ $ 2 Foreign 2,366 1,947 2,366 1,949 Deferred: Domestic Foreign (215 ) 35 (215 ) 35 Income tax expense $ 2,151 $ 1,984 The following is a reconciliation of expected to actual income tax expense: Amount Percentage Federal income tax at 21% $ 609 21 % Nontaxable or nondeductible Items Global intangible low tax income (""GILTI"") inclusion 2,040 70.32 % Excess tax deficiency for share-based payments under ASU 2016-09 624 21.51 % Other reconciling items (12 ) (0.41 %) Changes in Valuation Allowance (903 ) (31.13 %) Foreign Tax Effects Canada Nondeductible Fines and Penalties 98 3.38 % Other (34 ) (1.17 %) United Kingdom Changes in Valuation Allowance 196 6.76 % Deferred tax rate change (180 ) Other 23 0.79 % Singapore Statutory tax rate difference between Singapore and U.S. (428 ) (14.75 %) Depreciation & Amortization 117 4.03 % Statutory Adjustments 441 15.20 % Other (23 ) (0.79 %) Malaysia Changes in Valuation Allowance (295 ) (10.17 %) Statutory Adjustments (164 ) (5.65 %) Other 42 1.45 % $ 2,151 74.15 % Year Ended January 31, 2025 Federal income tax at 21 % $ 1,482 Taxes created by return to provision adjustments to prior year temporary differences 110 Global intangible l …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

7. Leases The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Singapore, Malaysia and The United Kingdom. Lease expense for the twelve months ended January 31, 2026 and 2025 was approximately $930,000 and $860,000, respectively, and was recorded as a component of operating income. Supplemental balance sheet information related to leases as of January 31, 2026 and 2025 was as follows (in thousands): As of January 31, Lease 2026 2025 Assets Operating lease right-of-use assets $ 1,092 $ 1,320 Liabilities Operating lease liabilities $ 1,092 $ 1,320 Classification of lease liabilities Current liabilities $ 686 $ 577 Non-current liabilities 406 743 Total Operating lease liabilities $ 1,092 $ 1,320 Lease-term and discount rate details as of January 31, 2026 and 2025 were as follows: As of January 31, Lease term and discount rate 2026 2025 Weighted average remaining lease term (years) Operating leases 2.64 1.39 Weighted average discount rate: Operating leases 15 % 14 % Supplemental cash flow information related to leases on January 31, 2026 and 2025 was as follows (in thousands): As of January 31, Lease 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (930 ) $ (987 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 950 $ 834 Maturities of lease liabilities on January 31, 2026 and 2025 were as follows (in tho …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"10. Related Party Transaction In February 2025, the Company retained Lucid to provide advisor and arrangement services for investigation and analysis of opportunities for growth and additional scale. Lucid received $100,000 in retainer fees for such potential services. The Vice Chairman of Lucid is the Non-Executive Chairman of the Company's board of directors (the ""Board""). Our Non-Executive Chairman of the Board received no portion of the above-mentioned compensation. For the twelve months ended January 31, 2026, Lucid received compensation of approximately$239,000 related to sales of common stock pursuant to the Sales Agreement. The Non-Executive Chairman of the Board received no portion of the compensation paid to Lucid. See Note 9 - ""Stockholders' Equity"" for discussion of the Company's entry into the Sales Agreement with Lucid."

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3. Revenue from Contracts with Customers The following table presents revenue from contracts with customers disaggregated by timing of revenue recognition: Twelve Months Ended January 31, 2026 2025 (in thousands) Total revenue recognized at a point in time $ 39,606 $ 45,189 Total revenue recognized over time $ 1,341 $ 1,674 Total revenue from contracts with customers $ 40,947 $ 46,863 The following table presents revenue from contracts with customers disaggregated by geography, based on the location of our customers: Twelve Months Ended January 31, 2026 2025 Revenue from contracts with customers: (in thousands) United States $ 3,005 $ 2,478 China 10,897 17,720 Norway 21,110 21,956 Turkey 2,116 634 Singapore 366 Japan 1,121 340 Other 2,698 3,369 Total revenue from contracts with customers $ 40,947 $ 46,863 Performance Obligations The revenue from products manufactured and sold by our Seamap business is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. However, from time to time our Seamap business provides repair and maintenance services, or performs upgrades, on customer-owned equipment in which case revenue is recognized over time. In addition, our Seamap business provides annual Software Maintenance Agreements (SMA) to customers who have an active license for software embedded in Seamap products. The revenue from SMA is recognized over time, with the to …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"14. Segment Reporting At January 31, 2026 , Seamap is the Companys sole reporting segment . Seamap - Our Seamap segment provides the following: GunLink seismic source acquisition and control systems BuoyLink relative global navigation satellite positioning systems SeaLink marine sensors and solid streamer systems Our Seamap segment provides services and products, including engineering, repairs and software licensing, utilized in marine exploration, marine survey and maritime security for marine survey companies, seismic survey contractors, research institutes, non-military government organizations and operators of port facilities and other offshore installations. Our CODM is our chief executive officer. Our CODM analyzes each segment's performance using revenue and operating income. Inter-company revenue and expenses have been eliminated in the reported revenue and operating income. Our CODM uses revenue and operating income in the annual budgeting and forecasting process and considers these on a monthly basis when making determinations on the allocation of resources. Financial information by business segment is set forth below net of any allocations (in thousands): Year Ended January 31, 2026 2025 Seamap Corporate Expenses Consolidated Seamap Corporate Expenses Consolidated Revenues $ 40,947 $ - $ 40,947 $ 46,863 $ - $ 46,863 Cost of sales 22,283 - 22,283 25,896 - 25,896 Selling, general and administrative 6,301 7,046 13,347 6,293 4,998 11,291 Research and development 1,252 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

9. Stockholders Equity At the virtual Special Meeting of Preferred Stockholders held on August 29, 2024, our preferred stockholders approved an amendment to our Certificate of Designations, Preferences and Rights of 9.00% Series A Cumulative preferred stock, to provide that each share of 9.00% Series A Cumulative Preferred Stock, $1.00 par value per share (the Preferred Stock) shall be converted into 3.9 shares of common stock, $0.01 par value per share (the common stock) upon the election of our Board of Directors. On September 4, 2024, all outstanding shares of Preferred Stock were converted into common stock and retired. The Company issued approximately 6,600,000 shares of common stock in connection with the conversion. Accordingly, the Company no longer has obligations regarding Preferred Stock dividends, including undeclared dividends from previous periods. The common stock issued was recorded at its market value at the date of issuance less transaction costs related to the conversion. The excess of the carrying value of the preferred stock over the market value of the common stock issued, which amounted to approximately $14.8 million, was credited directly to accumulated deficit and is reflected in the calculation of earnings per share attributable to common stockholders. On August 28, 2025, the Company entered into an equity distribution agreement (the Sales Agreement) with Lucid Capital Markets, LLC (the Lucid), pursuant to which the Company may offer and sell up to $ …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

16. Subsequent events On March 17, 2026, the Company has entered into a trade finance facility with HSBC Singapore for the issuance from time to time of letters of credit or bank guarantees. The Company has entered into this facility to provide flexibility for potential future projects and to allow the Company to respond efficiently and economically as these potential projects may arise. As of April 16, 2026, there has been no activity associated with this trade facility.

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Three Months Ended April 30, 2026 2025 Revenue recognized at a point in time: (in thousands) Total revenue recognized at a point in time $ 9,055 $ 7,556 Revenue recognized over time: Total revenue recognized over time 617 346 Total revenue from contracts with customers $ 9,672 $ 7,902 Three Months Ended April 30, 2026 2025 (in thousands) United States $ 162 $ 550 China 4,887 776 Norway 3,640 3,275 Turkey 145 227 Singapore 1,027 The Netherlands 694 209 Japan 678 Other 144 1,160 Total revenue from contracts with customers $ 9,672 $ 7,902 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

7. Intangible Assets April 30, 2026 January 31, 2026 Weighted Average Life at Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying April 30, 2026 Amount Amortization Amount Amount Amortization Amount (in thousands) (in thousands) Proprietary rights 2.9 7,472 (6,016 ) 1,456 7,472 (5,911 ) 1,561 Customer relationships 4,884 (4,884 ) 4,884 (4,884 ) Patents 0.6 2,540 (2,383 ) 157 2,540 (2,362 ) 178 Trade name 0.1 134 (133 ) 1 134 (130 ) 4 Other 495 (495 ) 498 (488 ) 10 Intangible assets $ 15,525 $ (13,911 ) $ 1,614 $ 15,528 $ (13,775 ) $ 1,753 On January 31, 2026 , the Company completed an annual review of amortizable intangible assets. Based on a review of qualitative factors, it was determined that there were no events or changes in circumstances indicating that the carrying value of amortizable intangible assets was not recoverable. During the three months ended April 30, 2026 , there have been no substantive indicators of impairment. Aggregate amortization expense was approximately $113,000 and $148,000 for the three months ended April 30, 2026, and April 30, 2025, respectively. As of April 30, 2026, future estimated amortization expense related to amortizable intangible assets was estimated to be: For fiscal years ending January 31, (in thousands) 2027 $ 253 2028 315 2029 213 2030 213 2031 213 Thereafter 407 Total $ 1,614 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

8. Income Taxes For the three -month period ended April 30, 2026 , our income tax expense was approximately $476,000 on pre-tax income of approximately $65,000. For the three -month period ended April 30, 2025, the income tax expense was approximately $294,000, on a pre-tax loss of approximately $676,000. The variance between our actual provision and the expected provision when applying the U.S. statutory rate of 21% is due primarily to the impact of income taxes accrued in certain foreign jurisdictions, mainly Singapore, which do not have net operating losses available to offset taxable income, and because we do not benefit from tax losses in the U.S. and certain foreign jurisdictions where we have valuation allowances recorded against our deferred tax assets. Valuation allowances have been provided against all deferred tax assets in the United States and certain foreign jurisdictions, including the United Kingdom. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the United States. This legislation introduces several measures, including the permanent extension of select provisions from the Tax Cuts and Jobs Act, revisions to the international tax framework, and the reinstatement of favorable tax treatment for certain business-related items. The OBBBA contains multiple effective dates, with key provisions beginning in fiscal 2026. While we are still assessing the overall impact of the OBBBA, we do not anticipate a material impact on our tax expense. The …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

6. Leases The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in Texas, Singapore, Malaysia, and the United Kingdom. Lease expense for the three months ended April 30, 2026 , was approximately $232,000. Lease expense for the three months ended April 30, 2025 , was approximately $232,000, and was recorded as a component of operating income. Supplemental balance sheet information related to leases as of April 30, 2026 and January 31, 2026 was as follows: Lease April 30, 2026 January 31, 2026 Assets (in thousands) Operating lease assets $ 910 $ 1,092 Liabilities Operating lease liabilities $ 910 $ 1,092 Classification of lease liabilities Current liabilities $ 655 $ 686 Non-current liabilities 255 406 Total Operating lease liabilities $ 910 $ 1,092 Lease-term and discount rate details as of April 30, 2026 and January 31, 2026 were as follows: Lease term and discount rate April 30, 2026 January 31, 2026 Weighted average remaining lease term (years) Operating leases 1.13 2.64 Weighted average discount rate: Operating leases 15 % 15 % The weighted average discount rate was calculated using the Company's weighted average cost of capital. Supplemental cash flow information related to leases was as follows: For the Three Months Ended April 30, Lease 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: (in thousands) Operating cash flows from operating leases $ (232 ) $ (232 ) Changes in lease balance …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10 -K for the fiscal year ended January 31, 2026 . During the three months ended April 30, 2026 , there were no changes to those accounting policies. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"10. Related Party Transaction In February 2025, the Company retained Lucid to provide advisor and arrangement services (the ""Services Agreement"") for investigation and analysis of opportunities for growth and additional scale. During fiscal 2026, Lucid received $100,000 in retainer fees for such potential services. The Vice Chairman of Lucid is the Non-Executive Chairman of the Company's board of directors (the ""Board""). Our Non-Executive Chairman of the Board received no portion of the above-mentioned compensation. For the three months ended April 30, 2026, the Company did not have any activity related to the Sales Agreement or the Services Agreement and no compensation related to either agreement was received by Lucid."

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4. Revenue from Contracts with Customers The following table presents revenue from contracts with customers disaggregated by timing of revenue recognition: Three Months Ended April 30, 2026 2025 Revenue recognized at a point in time: (in thousands) Total revenue recognized at a point in time $ 9,055 $ 7,556 Revenue recognized over time: Total revenue recognized over time 617 346 Total revenue from contracts with customers $ 9,672 $ 7,902 The following table presents revenue from contracts with customers disaggregated by geography, based on the location of our customers' headquarters: Three Months Ended April 30, 2026 2025 (in thousands) United States $ 162 $ 550 China 4,887 776 Norway 3,640 3,275 Turkey 145 227 Singapore 1,027 The Netherlands 694 209 Japan 678 Other 144 1,160 Total revenue from contracts with customers $ 9,672 $ 7,902 Performance Obligations The revenue from products manufactured and sold by our Seamap business is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. However, revenue is recognized over time when our Seamap business provides repair and maintenance services, or performs upgrades, on customer-owned equipment, which occurs periodically. In addition, our Seamap business provides annual Software Maintenance Agreements (SMAs) to customers who have an active license for software embedded in Seamap products. The revenue from SMAs is r …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"12. Segment Reporting Seamap is the Companys sole reportable segment and contains the following product and service lines: GunLink seismic source acquisition and control systems BuoyLink relative global navigation satellite positioning systems SeaLink marine sensors and solid streamer systems Our Seamap segment provides services and products, including engineering, repairs and software licensing, utilized in marine exploration, marine survey and maritime security for marine survey companies, seismic survey contractors, research institutes, non-military government organizations and operators of port facilities and other offshore installations. Our chief operating decision maker (""CODM"") is our chief executive officer. Our CODM analyzes segment performance using revenue and operating income. Inter-company revenue and expenses have been eliminated in the reported revenue and operating income. Our CODM considers revenue and operating income in the annual budgeting and forecasting process and analyzes these on a periodic basis when making determinations on the allocation of resources. Financial information by business segment is set forth below net of any allocations (in thousands): Three Months Ended April 30, 2026 2025 Seamap Corporate Expenses Consolidated Seamap Corporate Expenses Consolidated Revenues $ 9,672 $ $ 9,672 $ 7,902 $ $ 7,902 Cost of sales 5,575 5,575 4,571 4,571 Selling, general and administrative 1,426 2,119 3,545 1,676 1,708 3,384 Research and development 222 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

11. Equity and Stock-Based Compensation Total compensation expense recognized for stock-based awards granted under the Companys equity incentive plan during the three -month periods ended April 30, 2026 and April 30, 2025, was approximately $518,000 and $272,000, respectively. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing