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Box 1353 Alpharetta GA 30009 (888) 997-8732 Common Stock, $0.01 par value per share STRM NASDAQ Yes Yes Non-accelerated Filer true false false 58895071 4087000 6598000 94000 132000 2790000 7719000 940000 960000 895000 710000 8712000 15987000 266000 246000 106000 79000 32000 7107000 6224000 6105000 5846000 3527000 2627000 13893000 14793000 23089000 23089000 1410000 1695000 44603000 45534000 53315000 61521000 657000 626000 1939000 3265000 1000000 750000 6724000 8361000 35000 3015000 3738000 13335000 16775000 8517000 8964000 212000 167000 147000 104000 8876000 9235000 22211000 26010000 0.01 0.01 85000000 85000000 58895071 58895071 57567210 57567210 589000 576000 132933000 131973000 -102418000 -97038000 31104000 35511000 53315000 61521000 3531000 3117000 6706000 5948000 1100000 1118000 2257000 2228000 1139000 1757000 2139000 3751000 5770000 5992000 11102000 11927000 1893000 1532000 3482000 3029000 32000 90000 121000 136000 1022000 1582000 2130000 3248000 4107000 3934000 7913000 8435000 1305000 1461000 3006000 2773000 9000 49000 44000 139000 8368000 8648000 16696000 17760000 -2598000 -2656000 -5594000 -5833000 267000 189000 515000 321000 359000 -475000 723000 25000 -1000 50000 31000 83000 -2507000 -3270000 -5355000 -6046000 8000 2000 61000 13000 -2515000 -3272000 -5416000 -6059000 -0.04 -0.04 -0.07 -0.07 -0.10 -0.10 -0.13 -0.13 56357684 56357684 47231296 47231296 56164282 56164282 47129879 47129879 57567210 576000 131973000 -97038000 35511000 1185927 12000 -12000 28400 1000 -1000 -88326 -1000 -178000 -179000 595000 595000 36000 36000 -2901000 -2901000 58636411 586000 132379000 -99903000 33062000 385720 4000 -4000 77000 1000 -1000 -50060 -73000 -73000 630000 630000 -2515000 -2515000 58895071 589000 132933000 -102418000 31104000 47840950 478000 119225000 -86659000 34044000 408031 4000 -4000 63900 -95701 -1000 -140000 -141000 326000 326000 -2787000 -2787000 48089380 481000 119407000 -89446000 31442000 5000 6000 6000 726801 7000 -7000 20000 331000 331000 -3272000 -3272000 48801181 488000 119737000 -91718000 28507000 -5416000 -6059000 2134000 2199000 723000 25000 43000 1109000 657000 21000 -4985000 -329000 146000 742000 31000 -109000 -1361000 364000 -1592000 414000 -936000 -2951000 47000 10000 1026000 871000 -1073000 -881000 250000 252000 141000 6000 -502000 -135000 -2511000 -3967000 6598000 9885000 4087000 5918000 <p id="xdx_80F_eus-gaap--OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock_zfrJfDRshoN" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 1 — <span id="xdx_822_zuBO8Yq0ZzYh">BASIS OF PRESENTATION</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Streamline Health Solutions, Inc. and each of its wholly-owned subsidiaries, Streamline Health, LLC, Avelead Consulting, LLC, Streamline Consulting Solutions, LLC and Streamline Pay &amp; Benefits, LLC, (collectively, unless the context requires otherwise, “we,” “us,” “our,” “Streamline,” or the “Company”), operate in one segment as a provider of healthcare information technology solutions and associated services. The Company provides these capabilities through the licensing of its Coding &amp; Clinical Documentation Improvement (CDI) solutions, eValuator coding analysis platform, RevID, and other workflow software applications and the use of such applications by software as a service (“SaaS”). The Company also provides audit services to help clients optimize their internal clinical documentation and coding functions, as well as implementation and consulting services to complement its software solutions. The Company’s software and services enable hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information related to the patient revenue cycle.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed consolidated financial statements have been prepared by us pursuant to the rules and regulations applicable to quarterly reports on Form 10-Q of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. The condensed consolidated financial statements include the accounts of Streamline Health Solutions, Inc. and each of its wholly-owned subsidiaries. In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent annual report on Form 10-K. Operating results for the three and six months ended July 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2024.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has one operating segment and one reporting unit due to the singular nature of our products, product development and distribution process, and client base as a provider of computer software-based solutions and services for acute-care healthcare providers.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All amounts in the condensed consolidated financial statements, notes and tables have been rounded to the nearest thousand dollars, except share and per share amounts, unless otherwise indicated. All references to a fiscal year refer to the fiscal year commencing February 1 in that calendar year and ending on January 31 of the following calendar year.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Going Concern</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. To date, the Company has not generated sufficient revenues to allow it to generate free cash flow from operations. The Company has historically accumulated losses and used cash from its financing activities to supplement its operations. Further, the Company’s current forecast projects the Company may not be able to maintain compliance with certain of its financial covenants under its current credit agreement in the future. <span style="background-color: white">T</span>hese conditions raise substantial doubt about the ability of the Company to continue as a going concern within one year after the date that the financial statements are issued.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In view of these matters, continuation as a going concern is dependent upon the Company’s ability to achieve cash from operations and raise additional debt or equity capital to fund its ongoing operations. The Company expects to achieve positive operating cashflow in the next three fiscal quarters based upon executed contracts which it expects to be fully implemented. This is the first critical step to achieving cash from operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_eus-gaap--DebtInstrumentDescription_c20230201__20230731_zY2JRoV28SD2" title="Debt, description">The Company has approximately $<span id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_pn5n6_c20230731_zq2KOKENhBX1" title="Debt outstanding">9.7</span> million in debt outstanding which represents a debt-to-annual recurring revenue (ARR) ratio of approximately 0.50. The Company believes it has capacity to increase its debt-to-ARR ratio from 0.50 to 1.00 which would add approximately $<span id="xdx_909_eus-gaap--Cash_iI_pn5n6_c20230731_zHbfeGZnvDAi" title="cash">9.0</span> million in cash to the Company’s balance sheet. The Company believes a debt-to-ARR ratio of 1.00 is consistent with industry norms</span>. The Company believes it will achieve positive operating cashflow in the coming fiscal quarters from unimplemented executed contracts and expects to refinance its existing debt. In addition to funding operating losses, we are obligated to pay approximately $<span id="xdx_90C_eus-gaap--PaymentsOfFinancingCosts_pn5n6_c20230201__20230731_zjPV6cGxxlNd" title="Payments of financing costs">1.2</span> million in cash for the Avelead earnout on or about October 2023 and $<span id="xdx_902_eus-gaap--DebtInstrumentPeriodicPaymentPrincipal_pn5n6_c20230201__20230731_zJOj0laS6rf6" title="Debt instrument, periodic payment, principal">1.0</span> million in principal payments on the Company’s term debt over the next <span id="xdx_907_eus-gaap--DebtInstrumentTerm_dc_c20230201__20230731_zxSfj2IE6mTk" title="Debt instrument, term">twelve months</span> from July 31, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While the Company is confident in its ability to refinance its existing debt, it does not have written or executed agreements as of the issuance of this Form 10-Q. The Company’s ability to refinance its existing debt is based upon credit markets and economic forces that are outside of its control. The Company believes it has a good working relationship with its current banking partner, Western Alliance Bank, and has seen a positive trend in the credit markets as of late<span style="background-color: white">. However, there can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> The Company has approximately $9.7 million in debt outstanding which represents a debt-to-annual recurring revenue (ARR) ratio of approximately 0.50. The Company believes it has capacity to increase its debt-to-ARR ratio from 0.50 to 1.00 which would add approximately $9.0 million in cash to the Company’s balance sheet. The Company believes a debt-to-ARR ratio of 1.00 is consistent with industry norms 9700000 9000000.0 1200000 1000000.0 P12M <p id="xdx_80D_eus-gaap--SignificantAccountingPoliciesTextBlock_zCSjB3qATvC5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 2 — <span id="xdx_822_zep4C06iyjU4">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our significant accounting policies are presented in “Note 2 – Significant Accounting Policies” in the fiscal year 2022 Annual Report on Form 10-K. Users of financial information for interim periods are encouraged to refer to the notes to the consolidated financial statements contained in the Annual Report on Form 10-K when reviewing interim financial results.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--UseOfEstimates_z6ZY1F4qhB6l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86E_zD4hX9bDIq6g">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates and judgments, including those related to the recognition of revenue, share-based compensation, capitalization of software development costs, intangible assets, the allowance for credit losses, contingent consideration, and income taxes. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_848_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zHuOGVp4eHW1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86C_zFTluEcemzk1">Fair Value of Financial Instruments</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Financial Accounting Standards Board’s (“FASB”) authoritative guidance on fair value measurements establishes a framework for measuring fair value. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. Under this guidance, assets and liabilities carried at fair value must be classified and disclosed in one of the following three categories:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1: Quoted market prices in active markets for identical assets or liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3: Unobservable inputs that are not corroborated by market data.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments. Cash and cash equivalents are classified as Level 1. There were no transfers of assets or liabilities between Levels 1, 2, or 3 during the six months ended July 31, 2023 and 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_890_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zw2RZdzdPs27" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The table below provides information on the fair value of our liabilities:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zn5xybLssiIc" style="display: none">SCHEDULE OF FAIR VALUE ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Total Fair</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Quoted</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Prices in</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Active</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Markets</b></span></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Significant</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Other</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Observable</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Inputs</b></span></p></td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Significant<br/> Unobservable Inputs</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 1)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 2)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 3)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At January 31, 2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F47_zIsZxubCNW4a" style="width: 40%; text-align: left; padding-left: 10pt">Acquisition earnout liability (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131_fKDEp_zeVL6x2l6Udg" style="width: 11%; text-align: right" title="Acquisition earnout liability, Fair Value">3,738,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_fKDEp_zm1qOA3DlsCl" style="width: 11%; text-align: right" title="Acquisition earnout liability fair value"><span style="-sec-ix-hidden: xdx2ixbrl0601">—</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_fKDEp_zfeDKopdKAC4" style="width: 11%; text-align: right" title="Acquisition earn out liability"><span style="-sec-ix-hidden: xdx2ixbrl0603">—</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_fKDEp_zpXQbTSPGHsc" style="width: 11%; text-align: right" title="Acquisition earn out liability fair value, observable inputs">3,738,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At July 31, 2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F46_zw4x1qxuLIw4" style="text-align: left; padding-left: 10pt">Acquisition earnout liability (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731_fKDEp_zlZGgzT7ka6d" style="text-align: right" title="Acquisition earnout liability, Fair Value">3,015,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_fKDEp_zQr5iPr398Z1" style="text-align: right" title="Acquisition earnout liability fair value"><span style="-sec-ix-hidden: xdx2ixbrl0609">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_fKDEp_zqxF36vjtroj" style="text-align: right" title="Acquisition earn out liability"><span style="-sec-ix-hidden: xdx2ixbrl0611">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_fKDEp_zCG6wc66CZX6" style="text-align: right" title="Acquisition earn out liability fair value, observable inputs">3,015,000</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span id="xdx_F00_zrUTJur7OD8f" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F18_z6VZO5fzg0G7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of the acquisition earnout liability is based upon a probability-weighted discounted cash flow that was completed at the date of acquisition and updated as of July 31, 2023. The change in the fair value of the acquisition earnout liability decreased $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEZBSVIgVkFMVUUgQVNTRVRTIEFORCBMSUFCSUxJVElFUyBNRUFTVVJFRCBPTiBSRUNVUlJJTkcgQkFTSVMgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_ecustom--AcquisitionEarnoutLiabilityChangeInValuation_c20230501__20230731_zUO1sIGkfet3" title="Acquisition earnout liability, change in valuation">359,000</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEZBSVIgVkFMVUUgQVNTRVRTIEFORCBMSUFCSUxJVElFUyBNRUFTVVJFRCBPTiBSRUNVUlJJTkcgQkFTSVMgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90D_ecustom--AcquisitionEarnoutLiabilityChangeInValuation_c20230201__20230731_zVtA6AvkfI0h" title="Acquisition earnout liability, change in valuation">723,000</span> for the three and six months ended July 31, 2023. The change in the fair value is recognized in “Acquisition earnout valuation adjustments” in the accompanying condensed consolidated statement of operations.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The probability-weighted discounted cash flow is calculated using a Monte Carlo valuation method. The valuation model provides numerous outcomes. The outcomes are averaged and discounted to present value, which provides the current value point estimate. .. A range of possible outcomes is not available under the specific valuation method that was used in determining fair value of the acquisition earnout liability. The significant inputs include our forecast of Avelead SaaS revenue, the probabilities associated with each of (i) a change in control or (ii) a certain client termination, as well as other normal and customary inputs to financial models, including but not limited to, risk factors and interest rates.</td></tr> </table> <p id="xdx_8A4_zaJ4XUVzCaY6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of the Company’s term loan under its Second Amended and Restated Loan and Security Agreement (as amended and modified, the “Second Amended and Restated Loan Agreement”) was determined through an analysis of the interest rate spread from the date of closing the loan (August 2021) to the date of the most recent balance sheets, July 31, 2023 and January 31, 2023. <span id="xdx_907_eus-gaap--DebtInstrumentDescriptionOfVariableRateBasis_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember_zkjdv8vTtJgl" title="Variable rate, description">The term loan bears interest at a per annum rate equal to the Prime Rate (as published in The Wall Street Journal) plus <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember_z2c0Xd31Gs9b" title="Prime interest rate">1.5</span>%, with a Prime “floor” rate of <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zb95YiSubPq8" title="Prime interest rate">3.25</span>%. The prime rate is variable and, thus accommodates changes in the market interest rate. However, the interest rate spread (the <span id="xdx_903_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_uPure_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zzRx0Vl1qUXi" title="Variable interest rate">1.5</span>% added to the Prime Rate) is fixed. We estimated the impact of the changes in the interest rate spread by analogizing the effect of the change in the published “Corporate Bond Rates,” reduced for any changes in the market interest rate.</span> This provided us with an estimated change to the interest rate spread of approximately <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zO06QdoJ04v9" title="Interest rate">0.5</span>% from the date we entered the debt agreement to the end of the second quarter, July 31, 2023 and end of the fiscal year, January 31, 2023. The fair value of the debt as of July 31, 2023 and January 31, 2023 was estimated to be $<span id="xdx_905_eus-gaap--DebtInstrumentCarryingAmount_iI_c20230731__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zyeBHZCOl4dg" title="Debt instrument carrying amount">9,301,000</span> and $<span id="xdx_902_eus-gaap--DebtInstrumentCarryingAmount_iI_c20230131__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zoQUwlIZD80f" title="Debt instrument carrying amount">9,550,000</span>, respectively, or a discount to book value of $<span id="xdx_902_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20230731__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zwTLvbQx0Wqd" title="Term loan">199,000</span> and $<span id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20230131__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zpC7y0WBCoxa" title="Term loan">200,000</span>, respectively. Long-term debt is classified as Level 2.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zvUBoaeQ4sX2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_862_zvPc9U70gtk8">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We derive revenue from the sale of internally-developed software, either by licensing for local installation or by a SaaS delivery model, through the Company’s direct sales force or through third-party resellers. Licensed, locally-installed customers on a perpetual model utilize the Company’s support and maintenance services for a separate fee, whereas term-based locally installed license fees and SaaS fees include support and maintenance. We also derive revenue from professional services that support the implementation, configuration, training and optimization of the applications, as well as audit services and consulting services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We recognize revenue in accordance with Accounting Standards Codification (ASC) 606, <i>Revenue from Contracts with Customers</i>, under the core principle of recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Disaggregation of Revenue</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p id="xdx_894_eus-gaap--DisaggregationOfRevenueTableTextBlock_zT5VcJn3M4Yl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following table provides information about disaggregated revenue by type and nature of revenue stream:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zHbdmpwKRj92" style="display: none">SCHEDULE OF DISAGGREGATION OF REVENUE</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230501__20230731_zhRzS6lzsg1" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20220501__20220731_z6I3DtxtJVq9" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20230201__20230731_z8dtQYLxlJ55" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20220201__20220731_z7b1BTPLE0X4" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OverTimeRevenueMember_zcHq7J5mbH6l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Over time revenue</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">5,770,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">5,940,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,028,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,804,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PointInTimeRevenueMember_zFTNcNLwo5Yg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Point in time revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0647">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">52,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">74,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,940,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zEf8Nhqa5Kdi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Total revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,770,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,992,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,102,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,927,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A1_zzH8NCYrzbO1" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company includes revenue categories of (i) over time and (ii) point in time revenue. The Company includes revenue categories of (i) SaaS, (ii) maintenance and support, (iii) professional services, and (iv) audit services as over time revenue. For point in time revenue, the performance obligation is recognized as the point in time when the obligation is fully satisfied. The Company includes (i) software licenses as point in time revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Contract Receivables and Deferred Revenues</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company receives payments from customers based upon contractual billing schedules. Contract receivables include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Deferred revenue includes payments received in advance of performance under the contract. The Company’s contract receivables and deferred revenue are reported on an individual contract basis at the end of each reporting period. Contract receivables are classified as current or noncurrent based on the timing of when we expect to bill the customer. Deferred revenue is classified as current or noncurrent based on the timing of when we expect to recognize revenue. In the six months ended July 31, 2023, the Company recognized approximately $<span id="xdx_902_eus-gaap--DeferredRevenue_iI_pp0p0_c20230731_zcq9tcrQUHhd" title="Deferred revenue">4,815,000</span> in revenue from deferred revenues outstanding as of January 31, 2023. Revenue allocated to remaining performance obligations was $<span id="xdx_904_eus-gaap--RevenueRemainingPerformanceObligation_iI_pp0p0_c20230731_zi3CkdAwBj17" title="Revenue remaining performance obligation">25,352,000</span> as of July 31, 2023, of which <span id="xdx_905_eus-gaap--RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionExplanation_c20230201__20230731_z8J7T5IVwio1" title="Revenue, remaining performance obligation, expected timing of satisfaction, explanation">the Company expects to recognize approximately 69% over the next 12 months and the remainder thereafter.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Deferred costs (costs to fulfill a contract and contract acquisition costs)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company defers the direct costs, which include salaries and benefits, for professional services related to SaaS contracts as a cost to fulfill a contract. These deferred costs will be amortized on a straight-line basis over the period of expected benefit which is the contractual term. As of July 31, 2023 and January 31, 2023, the Company had deferred costs of $<span id="xdx_90A_eus-gaap--DeferredCostsCurrentAndNoncurrent_iI_pp0p0_c20230731_z3alxbSA0mW9" title="Deferred costs, net">84,000</span> and $<span id="xdx_90D_eus-gaap--DeferredCostsCurrentAndNoncurrent_iI_pp0p0_c20230131_zQrAwB46Xbyb" title="Deferred costs, net">94,000</span>, respectively, net of accumulated amortization of $<span id="xdx_906_eus-gaap--AccumulatedAmortizationOfOtherDeferredCosts_iI_pp0p0_c20230731_zjGNr3Pcd8mi" title="Accumulated amortization of deferred costs">211,000</span> and $<span id="xdx_90C_eus-gaap--AccumulatedAmortizationOfOtherDeferredCosts_iI_pp0p0_c20230131_zfsHC74Xx0P2" title="Accumulated amortization of deferred costs">176,000</span>, respectively. Amortization expense of these costs was $<span id="xdx_909_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20230501__20230731_zV5ZfNdvegGj" title="Deferred costs, amortization expense">17,000</span> and $<span id="xdx_906_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20220501__20220731_zFuJQG9dJsu9" title="Deferred costs, amortization expense">21,000</span> for the three months ended July 31, 2023 and 2022, respectively, and $<span id="xdx_904_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20230201__20230731_z00V4BnePUBk" title="Deferred costs, amortization expense">34,000</span> and $<span id="xdx_906_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20220201__20220731_z8vdqlh9EYFh" title="Deferred costs, amortization expense">40,000</span> for the six months ended July 31, 2023 and 2022, respectively, and is included in cost of software as a service in the condensed consolidated statements of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contract acquisition costs, which consist of sales commissions paid or payable, are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial and renewal contracts are deferred and then amortized on a straight-line basis over the contract term. As a practical expedient, the Company expenses sales commissions as incurred when the amortization period of related deferred commission costs is expected to be one year or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of July 31, 2023 and January 31, 2023, deferred commission costs paid and payable, which are included on the consolidated balance sheets within other non-current assets totaled $<span id="xdx_90F_ecustom--DeferredCommissionsCostsPaidAndPayable_iI_pp0p0_c20230731__us-gaap--BalanceSheetLocationAxis__us-gaap--OtherNoncurrentAssetsMember_zuBW3Md7fdRi" title="Deferred commissions costs paid and payable">1,325,000</span> and $<span id="xdx_909_ecustom--DeferredCommissionsCostsPaidAndPayable_iI_pp0p0_c20230131__us-gaap--BalanceSheetLocationAxis__us-gaap--OtherNoncurrentAssetsMember_zROeRlatPTHf" title="Deferred commissions costs paid and payable">1,534,000</span>, respectively, net of accumulated amortization of $<span id="xdx_903_ecustom--DeferredCommissionCostsAccumulatedAmortization_iI_c20230731_zrCIcIiZQTM5" title="Accumulated amortization">1,074,000</span> and $<span id="xdx_90F_ecustom--DeferredCommissionCostsAccumulatedAmortization_iI_c20230131_zjmGZAIA7nY3" title="Accumulated amortization">820,000</span>, respectively. Amortization expense associated with deferred sales commissions, which is included in the condensed consolidated statements of operations, was $<span id="xdx_90C_eus-gaap--AmortizationOfDeferredSalesCommissions_c20230501__20230731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zdVaJx4ooHXa" title="Deferred sales commissions">125,000</span> and $<span id="xdx_908_eus-gaap--AmortizationOfDeferredSalesCommissions_c20220501__20220731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zleeSSdXNhI2" title="Deferred sales commissions">95,000</span> for the three months ended July 31, 2023 and 2022, respectively. Amortization expense for the six months ended July 31, 2023 and 2022 was $<span id="xdx_909_eus-gaap--AmortizationOfDeferredSalesCommissions_c20230201__20230731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_znxvWszJpmK1" title="Deferred sales commissions">254,000</span> and $<span id="xdx_908_eus-gaap--AmortizationOfDeferredSalesCommissions_c20220201__20220731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zAdALbmqTGi8" title="Deferred sales commissions">186,000</span>, respectively. There were no impairment losses for these capitalized costs for these periods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_ecustom--EquityAwardPolicyTextBlock_zMIUVourkb8i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86B_zjPB2OUS4P8h">Equity Awards</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company accounts for share-based payments based on the grant-date fair value of the awards with compensation cost recognized as expense over the requisite service period, and forfeitures are recognized as incurred. For awards to non-employees, the Company recognizes compensation expense in the same manner as if the entity had paid cash for the goods or services. The Company incurred total compensation expense related to share-based awards for the three and six months ended July 31, 2023 of $<span id="xdx_909_eus-gaap--ShareBasedCompensation_c20230501__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_z0xQk4JOW6Nd" title="Compensation expense related to stock-based award">537,000</span> and $<span id="xdx_903_eus-gaap--ShareBasedCompensation_c20230201__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_zpRwa1PToVf9" title="Compensation expense related to stock-based award">1,109,000</span>, respectively, which includes $<span id="xdx_902_eus-gaap--ShareBasedCompensation_c20230501__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember_zPG3RWCePIR7" title="Compensation expense related to stock-based award">93,000</span> and $<span id="xdx_903_eus-gaap--ShareBasedCompensation_c20230201__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember_z8jmSXGFNbP6" title="Compensation expense related to stock-based award">116,000</span>, respectively, of capitalized non-employee stock compensation, compared to share-based compensation expense of $<span id="xdx_907_eus-gaap--ShareBasedCompensation_c20220501__20220731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_zMp1luxHFTy9" title="Compensation expense related to stock-based award">331,000</span> and $<span id="xdx_908_eus-gaap--ShareBasedCompensation_c20220201__20220731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_zGp3hfa0Den6" title="Compensation expense related to stock-based award">657,000</span>, respectively, for the three and six months ended July 31, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of stock options granted are estimated at the date of grant using a Black-Scholes option pricing model. Option pricing model input assumptions such as expected term, expected volatility and risk-free interest rate impact the fair value estimate. These assumptions are subjective and are generally derived from external (such as, risk-free rate of interest) and historical data (such as, volatility factor and expected term). Future grants of equity awards accounted for as share-based compensation could have a material impact on reported expenses depending upon the number, value and vesting period of future awards.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company issues restricted stock awards in the form of Company common stock. The fair value of these awards is based on the market closing price per share on the grant date. For the three and six months ended July 31, 2023, the Company issued <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20230501__20230731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zsHsJXPNVCVk" title="Restricted common shares">0</span> and <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20230201__20230731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zfBWi8KsalAh" title="Restricted common shares">1,085,000</span> shares of restricted common stock to employees, respectively, compared to <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220501__20220731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zqyCdKj8XLWh" title="Restricted common shares">470,000</span> and <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220201__20220731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zXs4PKz5ZNdl" title="Restricted common shares">800,000</span> shares of restricted common stock for the three and six months ended July 31, 2022, respectively. The Company expenses the compensation cost of these awards as the restriction period lapses, which is typically a three-year period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--IncomeTaxPolicyTextBlock_zuM0bngOLHhk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86F_zFcj8mx3rug4">Income Taxes</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax credit and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing net deferred tax assets, the Company considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The Company establishes a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. Refer to Note 6 – Income Taxes for further details.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company provides for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether certain tax positions are more likely than not to be sustained upon examination by tax authorities. At July 31, 2023, the Company believes it has appropriately accounted for any uncertain tax positions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--EarningsPerSharePolicyTextBlock_z0VbWGRMna64" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_864_z9dXjTB16UWl">Net Loss Per Common Share</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company presents basic and diluted earnings per share (“EPS”) data for the Company’s common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s unvested restricted stock awards are considered non-participating securities because holders are not entitled to non-forfeitable rights to dividends or dividend equivalents during the vesting term. Diluted EPS for the Company’s common stock is computed using the treasury stock method.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_899_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zbidWI8SYVRc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following is the calculation of the basic and diluted net loss per share of common stock for the three and six months ended July 31, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BB_zc3ZHAvtQ8h4" style="display: none">SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE OF COMMON STOCK</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230501__20230731_zQO27AwDCALi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220501__20220731_zKiDuES7J3Hb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230201__20230731_zqHgkKEp17Pk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20220201__20220731_zsXnOvpI1fIh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Basic and diluted loss per share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLoss_zpOeBXPQvvu7" style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Net loss</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(2,515,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(3,272,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(5,416,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(6,059,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Basic and diluted net loss per share of common stock from operations</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_902_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20230501__20230731_z0WlbSgOsko" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90E_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20230501__20230731_zYrzqmx5F0Ge" title="Diluted net loss per share of common stock from operations">(0.04</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_900_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20220501__20220731_pdd" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90C_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20220501__20220731_ziGCDdsathwa" title="Diluted net loss per share of common stock from operations">(0.07</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90A_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20230201__20230731_zJZLhTR4lwY7" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_908_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20230201__20230731_zEGgaZrOMhm9" title="Diluted net loss per share of common stock from operations">(0.10</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_902_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20220201__20220731_z9nfpSqtr7Oe" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90E_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20220201__20220731_zuEgdbJO7zSd" title="Diluted net loss per share of common stock from operations">(0.13</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zBw2nNadPnv8" style="vertical-align: bottom; background-color: White"> <td>Weighted average shares outstanding – Basic <span id="xdx_F42_z6j4HNvwSLpf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,357,684</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,231,296</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,164,282</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,129,879</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--EffectOfDilutiveSecuritiesStockOptionsRestrictedStocks_pid_zXv39Kpu3LMj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Effect of dilutive securities – Stock options and Restricted stock <span id="xdx_F4C_zaIZJAwk0gJ5" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0749">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0750">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0751">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0752">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_zPqMzeOsReNb" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Weighted average shares outstanding – Diluted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,357,684</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,231,296</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,164,282</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,129,879</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><span id="xdx_F01_zM9rZy0mzz33" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F15_zXaxOMT7FzHe" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes the effect of vested and excludes the effect of unvested restricted shares of common stock, which are considered non-participating securities. As of July 31, 2023 and 2022, there were <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_znDQ2cvzOYm" title="Diluted earnings per share">2,484,071</span> and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_z8N3S7FojLp8" title="Diluted earnings per share">1,564,031</span> unvested restricted shares of common stock outstanding, respectively.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F00_zNWG3Nuvfor3" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F1C_zEJB1iCIMvp9" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted net loss per share excludes the effect of shares that are anti-dilutive. For the three and six months ended July 31, 2023, diluted earnings per share excludes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230501__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zRaVe6SraN7j" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_908_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zPVMWEGWsJzh" title="Diluted earnings per share">618,958</span></span> outstanding stock options and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_904_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230501__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zfM7bdqE5JXk" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_905_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zYrw2OHs6rp3" title="Diluted earnings per share">2,484,071</span></span> unvested restricted shares of common stock. For the three and six months ended July 31, 2022, diluted earnings per share excludes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220501__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zzPfBGtUro4b" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zV35w8zhTYb6" title="Diluted earnings per share">684,125</span></span> outstanding stock options and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220501__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zpIfFn0Dette" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zuaD8JFLiJT8" title="Diluted earnings per share">1,564,031</span></span> unvested restricted shares of common stock.</span></td></tr> </table> <p id="xdx_8A5_znBMZDIduD4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_845_ecustom--OtherOperatingCostPolicyTextBlock_zEeTg0zbovU5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zEMbaki6zHc2">Other Operating Costs</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Acquisition-related Costs</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three months and six months ended July 31, 2023, the Company incurred certain acquisition-related costs related to the acquisition of Avelead totaling $<span id="xdx_906_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20230501__20230731_zA4RB1Ehhk44" title="Acquisition related costs">9,000</span> and $<span id="xdx_901_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20230201__20230731_za0fncVu6DX6" title="Acquisition related costs">44,000</span>, respectively, consisting primarily of professional service fees. For the three and six months ended July 31, 2022, the Company incurred acquisition-related costs totaling $<span id="xdx_90B_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20220501__20220731_zxvvwUhtfvP4" title="Acquisition related costs">49,000</span> and $<span id="xdx_908_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20220201__20220731_z32qxtTP50Od" title="Acquisition related costs">139,000</span> respectively, consisting primarily of professional service fees.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_ecustom--NoncashItemsPolicyTextBlock_zWiH02ISRxZb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zy5q5S0ZZDX1">Non-Cash Items</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the six months ended July 31, 2023, the Company recorded capitalized software purchased with stock, totaling $<span id="xdx_901_eus-gaap--DebtInstrumentDecreaseForgiveness_c20230201__20230731_zurju9QXnmY3" title="Forgiveness of Ppp loan and accrued interest">116,000</span>, as non-cash items related to the condensed consolidated statements of cash flow.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84F_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zJ14CiyVmjGh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_860_zTLqBeB0kBjl">Accounting Pronouncements Recently Adopted</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 1, 2023, the Company adopted ASU No. 2016-13, <i>Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</i> (“ASU 2016-13”), as amended. ASU 2016-13 requires an allowance for expected credit losses to be applied to financial assets at inception and reflect the risk of credit loss over the life of the asset. The Company estimated current expected credit losses based on historical credit loss rates and applied an increase to account for future economic conditions. The Company’s allowance for doubtful accounts as of January 31, 2023, prior to the adoption of ASU 216-13, was $<span id="xdx_90F_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_pp0p0_c20230131_z58DJcbES21c" title="Allowance for doubtful accounts">132,000</span>. The Company estimated the current expected credit loss related to accounts receivable as of the adoption date of February 1, 2023 to be $<span id="xdx_90E_eus-gaap--DeferredFinanceCostsNet_iI_c20230201_zhUa0JEC7dsi" title="Deferred financing cost">96,000</span>. The Company recorded the adjustment in accounting policy change of $<span id="xdx_906_ecustom--AdoptionOfASU_c20230201__20230731_z5a79wZIyIZg" title="Adoption of asu">36,000</span> to the opening accumulated deficit balance for the year of adoption.</span></p> <p id="xdx_893_ecustom--AccountingPronouncementsRecentlyAdoptedTableTextBlock_zluZ2FAKxm79" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zYcAOJWRrDJa" style="display: none">SCHEDULE OF ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">CECL Adoption</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Provision adjustments</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Write-offs &amp; Recoveries</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left; padding-bottom: 1.5pt">Allowance for credit losses</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(<span id="xdx_908_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pp0p0_c20230201__20230731_zTVHts03AfO6" title="Allowance for doubtful accounts">132,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right"><span id="xdx_90B_ecustom--AdoptionOfASU_c20230201__20230731_zTO1u0qUrdal" title="Adoption of asu">36,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--AllowanceForDoubtfulAccountsReceivablePeriodIncreaseDecrease_c20230201__20230731_zkug0SNsB5G3" style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right" title="Provision adjustments"><span style="-sec-ix-hidden: xdx2ixbrl0809">—</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_c20230201__20230731_z39gWdOYtDza" style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right" title="Write offs and Recoveries"><span style="-sec-ix-hidden: xdx2ixbrl0811">—</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(<span id="xdx_90F_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_c20230201__20230731_zkCYfNjyPTZd" title="Allowance for doubtful accounts">96,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr> </table> <p id="xdx_8A0_zdXp9xJQ1y8f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the period ended July 31, 2023, the Company estimated the current expected credit loss related to accounts receivable using historical credit loss rates and applied an adjustment to account for future economic conditions in accordance with ASU 2016-13. The Company had no further impact on the allowance for credit losses during the six month period ended July 31, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_848_ecustom--RecentAccountingPronouncementsNotYetAdoptedPolicyTextBlock_zv9RX7UJ8dih" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_865_z0b38RGlunba">Recent Accounting Pronouncements Not Yet Adopted</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company does not believe there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.</span></p> <p id="xdx_850_zAHSbhjutcY5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--UseOfEstimates_z6ZY1F4qhB6l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86E_zD4hX9bDIq6g">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates and judgments, including those related to the recognition of revenue, share-based compensation, capitalization of software development costs, intangible assets, the allowance for credit losses, contingent consideration, and income taxes. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_848_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zHuOGVp4eHW1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86C_zFTluEcemzk1">Fair Value of Financial Instruments</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Financial Accounting Standards Board’s (“FASB”) authoritative guidance on fair value measurements establishes a framework for measuring fair value. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. Under this guidance, assets and liabilities carried at fair value must be classified and disclosed in one of the following three categories:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1: Quoted market prices in active markets for identical assets or liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3: Unobservable inputs that are not corroborated by market data.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments. Cash and cash equivalents are classified as Level 1. There were no transfers of assets or liabilities between Levels 1, 2, or 3 during the six months ended July 31, 2023 and 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_890_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zw2RZdzdPs27" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The table below provides information on the fair value of our liabilities:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zn5xybLssiIc" style="display: none">SCHEDULE OF FAIR VALUE ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Total Fair</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Quoted</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Prices in</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Active</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Markets</b></span></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Significant</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Other</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Observable</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Inputs</b></span></p></td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Significant<br/> Unobservable Inputs</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 1)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 2)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 3)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At January 31, 2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F47_zIsZxubCNW4a" style="width: 40%; text-align: left; padding-left: 10pt">Acquisition earnout liability (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131_fKDEp_zeVL6x2l6Udg" style="width: 11%; text-align: right" title="Acquisition earnout liability, Fair Value">3,738,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_fKDEp_zm1qOA3DlsCl" style="width: 11%; text-align: right" title="Acquisition earnout liability fair value"><span style="-sec-ix-hidden: xdx2ixbrl0601">—</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_fKDEp_zfeDKopdKAC4" style="width: 11%; text-align: right" title="Acquisition earn out liability"><span style="-sec-ix-hidden: xdx2ixbrl0603">—</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_fKDEp_zpXQbTSPGHsc" style="width: 11%; text-align: right" title="Acquisition earn out liability fair value, observable inputs">3,738,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At July 31, 2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F46_zw4x1qxuLIw4" style="text-align: left; padding-left: 10pt">Acquisition earnout liability (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731_fKDEp_zlZGgzT7ka6d" style="text-align: right" title="Acquisition earnout liability, Fair Value">3,015,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_fKDEp_zQr5iPr398Z1" style="text-align: right" title="Acquisition earnout liability fair value"><span style="-sec-ix-hidden: xdx2ixbrl0609">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_fKDEp_zqxF36vjtroj" style="text-align: right" title="Acquisition earn out liability"><span style="-sec-ix-hidden: xdx2ixbrl0611">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_fKDEp_zCG6wc66CZX6" style="text-align: right" title="Acquisition earn out liability fair value, observable inputs">3,015,000</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span id="xdx_F00_zrUTJur7OD8f" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F18_z6VZO5fzg0G7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of the acquisition earnout liability is based upon a probability-weighted discounted cash flow that was completed at the date of acquisition and updated as of July 31, 2023. The change in the fair value of the acquisition earnout liability decreased $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEZBSVIgVkFMVUUgQVNTRVRTIEFORCBMSUFCSUxJVElFUyBNRUFTVVJFRCBPTiBSRUNVUlJJTkcgQkFTSVMgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_ecustom--AcquisitionEarnoutLiabilityChangeInValuation_c20230501__20230731_zUO1sIGkfet3" title="Acquisition earnout liability, change in valuation">359,000</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEZBSVIgVkFMVUUgQVNTRVRTIEFORCBMSUFCSUxJVElFUyBNRUFTVVJFRCBPTiBSRUNVUlJJTkcgQkFTSVMgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90D_ecustom--AcquisitionEarnoutLiabilityChangeInValuation_c20230201__20230731_zVtA6AvkfI0h" title="Acquisition earnout liability, change in valuation">723,000</span> for the three and six months ended July 31, 2023. The change in the fair value is recognized in “Acquisition earnout valuation adjustments” in the accompanying condensed consolidated statement of operations.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The probability-weighted discounted cash flow is calculated using a Monte Carlo valuation method. The valuation model provides numerous outcomes. The outcomes are averaged and discounted to present value, which provides the current value point estimate. .. A range of possible outcomes is not available under the specific valuation method that was used in determining fair value of the acquisition earnout liability. The significant inputs include our forecast of Avelead SaaS revenue, the probabilities associated with each of (i) a change in control or (ii) a certain client termination, as well as other normal and customary inputs to financial models, including but not limited to, risk factors and interest rates.</td></tr> </table> <p id="xdx_8A4_zaJ4XUVzCaY6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of the Company’s term loan under its Second Amended and Restated Loan and Security Agreement (as amended and modified, the “Second Amended and Restated Loan Agreement”) was determined through an analysis of the interest rate spread from the date of closing the loan (August 2021) to the date of the most recent balance sheets, July 31, 2023 and January 31, 2023. <span id="xdx_907_eus-gaap--DebtInstrumentDescriptionOfVariableRateBasis_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember_zkjdv8vTtJgl" title="Variable rate, description">The term loan bears interest at a per annum rate equal to the Prime Rate (as published in The Wall Street Journal) plus <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember_z2c0Xd31Gs9b" title="Prime interest rate">1.5</span>%, with a Prime “floor” rate of <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zb95YiSubPq8" title="Prime interest rate">3.25</span>%. The prime rate is variable and, thus accommodates changes in the market interest rate. However, the interest rate spread (the <span id="xdx_903_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_uPure_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--SecondAmendedAndRestatedLoanAndSecurityAgreementMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zzRx0Vl1qUXi" title="Variable interest rate">1.5</span>% added to the Prime Rate) is fixed. We estimated the impact of the changes in the interest rate spread by analogizing the effect of the change in the published “Corporate Bond Rates,” reduced for any changes in the market interest rate.</span> This provided us with an estimated change to the interest rate spread of approximately <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zO06QdoJ04v9" title="Interest rate">0.5</span>% from the date we entered the debt agreement to the end of the second quarter, July 31, 2023 and end of the fiscal year, January 31, 2023. The fair value of the debt as of July 31, 2023 and January 31, 2023 was estimated to be $<span id="xdx_905_eus-gaap--DebtInstrumentCarryingAmount_iI_c20230731__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zyeBHZCOl4dg" title="Debt instrument carrying amount">9,301,000</span> and $<span id="xdx_902_eus-gaap--DebtInstrumentCarryingAmount_iI_c20230131__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zoQUwlIZD80f" title="Debt instrument carrying amount">9,550,000</span>, respectively, or a discount to book value of $<span id="xdx_902_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20230731__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zwTLvbQx0Wqd" title="Term loan">199,000</span> and $<span id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20230131__us-gaap--TypeOfArrangementAxis__custom--DebtAgreementMember_zpC7y0WBCoxa" title="Term loan">200,000</span>, respectively. Long-term debt is classified as Level 2.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_890_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zw2RZdzdPs27" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The table below provides information on the fair value of our liabilities:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zn5xybLssiIc" style="display: none">SCHEDULE OF FAIR VALUE ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Total Fair</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Quoted</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Prices in</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Active</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Markets</b></span></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Significant</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Other</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Observable</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Inputs</b></span></p></td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Significant<br/> Unobservable Inputs</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 1)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 2)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(Level 3)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At January 31, 2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F47_zIsZxubCNW4a" style="width: 40%; text-align: left; padding-left: 10pt">Acquisition earnout liability (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131_fKDEp_zeVL6x2l6Udg" style="width: 11%; text-align: right" title="Acquisition earnout liability, Fair Value">3,738,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_fKDEp_zm1qOA3DlsCl" style="width: 11%; text-align: right" title="Acquisition earnout liability fair value"><span style="-sec-ix-hidden: xdx2ixbrl0601">—</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_fKDEp_zfeDKopdKAC4" style="width: 11%; text-align: right" title="Acquisition earn out liability"><span style="-sec-ix-hidden: xdx2ixbrl0603">—</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230131__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_fKDEp_zpXQbTSPGHsc" style="width: 11%; text-align: right" title="Acquisition earn out liability fair value, observable inputs">3,738,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>At July 31, 2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F46_zw4x1qxuLIw4" style="text-align: left; padding-left: 10pt">Acquisition earnout liability (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731_fKDEp_zlZGgzT7ka6d" style="text-align: right" title="Acquisition earnout liability, Fair Value">3,015,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_fKDEp_zQr5iPr398Z1" style="text-align: right" title="Acquisition earnout liability fair value"><span style="-sec-ix-hidden: xdx2ixbrl0609">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_fKDEp_zqxF36vjtroj" style="text-align: right" title="Acquisition earn out liability"><span style="-sec-ix-hidden: xdx2ixbrl0611">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_ecustom--AcquisitionEarnoutLiabilityFairValue_iI_c20230731__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_fKDEp_zCG6wc66CZX6" style="text-align: right" title="Acquisition earn out liability fair value, observable inputs">3,015,000</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span id="xdx_F00_zrUTJur7OD8f" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F18_z6VZO5fzg0G7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of the acquisition earnout liability is based upon a probability-weighted discounted cash flow that was completed at the date of acquisition and updated as of July 31, 2023. The change in the fair value of the acquisition earnout liability decreased $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEZBSVIgVkFMVUUgQVNTRVRTIEFORCBMSUFCSUxJVElFUyBNRUFTVVJFRCBPTiBSRUNVUlJJTkcgQkFTSVMgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_ecustom--AcquisitionEarnoutLiabilityChangeInValuation_c20230501__20230731_zUO1sIGkfet3" title="Acquisition earnout liability, change in valuation">359,000</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEZBSVIgVkFMVUUgQVNTRVRTIEFORCBMSUFCSUxJVElFUyBNRUFTVVJFRCBPTiBSRUNVUlJJTkcgQkFTSVMgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90D_ecustom--AcquisitionEarnoutLiabilityChangeInValuation_c20230201__20230731_zVtA6AvkfI0h" title="Acquisition earnout liability, change in valuation">723,000</span> for the three and six months ended July 31, 2023. The change in the fair value is recognized in “Acquisition earnout valuation adjustments” in the accompanying condensed consolidated statement of operations.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The probability-weighted discounted cash flow is calculated using a Monte Carlo valuation method. The valuation model provides numerous outcomes. The outcomes are averaged and discounted to present value, which provides the current value point estimate. .. A range of possible outcomes is not available under the specific valuation method that was used in determining fair value of the acquisition earnout liability. The significant inputs include our forecast of Avelead SaaS revenue, the probabilities associated with each of (i) a change in control or (ii) a certain client termination, as well as other normal and customary inputs to financial models, including but not limited to, risk factors and interest rates.</td></tr> </table> 3738000 3738000 3015000 3015000 359000 723000 The term loan bears interest at a per annum rate equal to the Prime Rate (as published in The Wall Street Journal) plus 1.5%, with a Prime “floor” rate of 3.25%. The prime rate is variable and, thus accommodates changes in the market interest rate. However, the interest rate spread (the 1.5% added to the Prime Rate) is fixed. We estimated the impact of the changes in the interest rate spread by analogizing the effect of the change in the published “Corporate Bond Rates,” reduced for any changes in the market interest rate. 0.015 0.0325 0.015 0.005 9301000 9550000 199000 200000 <p id="xdx_844_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zvUBoaeQ4sX2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_862_zvPc9U70gtk8">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We derive revenue from the sale of internally-developed software, either by licensing for local installation or by a SaaS delivery model, through the Company’s direct sales force or through third-party resellers. Licensed, locally-installed customers on a perpetual model utilize the Company’s support and maintenance services for a separate fee, whereas term-based locally installed license fees and SaaS fees include support and maintenance. We also derive revenue from professional services that support the implementation, configuration, training and optimization of the applications, as well as audit services and consulting services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We recognize revenue in accordance with Accounting Standards Codification (ASC) 606, <i>Revenue from Contracts with Customers</i>, under the core principle of recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Disaggregation of Revenue</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p id="xdx_894_eus-gaap--DisaggregationOfRevenueTableTextBlock_zT5VcJn3M4Yl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following table provides information about disaggregated revenue by type and nature of revenue stream:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zHbdmpwKRj92" style="display: none">SCHEDULE OF DISAGGREGATION OF REVENUE</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230501__20230731_zhRzS6lzsg1" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20220501__20220731_z6I3DtxtJVq9" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20230201__20230731_z8dtQYLxlJ55" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20220201__20220731_z7b1BTPLE0X4" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OverTimeRevenueMember_zcHq7J5mbH6l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Over time revenue</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">5,770,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">5,940,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,028,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,804,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PointInTimeRevenueMember_zFTNcNLwo5Yg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Point in time revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0647">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">52,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">74,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,940,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zEf8Nhqa5Kdi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Total revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,770,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,992,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,102,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,927,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A1_zzH8NCYrzbO1" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company includes revenue categories of (i) over time and (ii) point in time revenue. The Company includes revenue categories of (i) SaaS, (ii) maintenance and support, (iii) professional services, and (iv) audit services as over time revenue. For point in time revenue, the performance obligation is recognized as the point in time when the obligation is fully satisfied. The Company includes (i) software licenses as point in time revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Contract Receivables and Deferred Revenues</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company receives payments from customers based upon contractual billing schedules. Contract receivables include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Deferred revenue includes payments received in advance of performance under the contract. The Company’s contract receivables and deferred revenue are reported on an individual contract basis at the end of each reporting period. Contract receivables are classified as current or noncurrent based on the timing of when we expect to bill the customer. Deferred revenue is classified as current or noncurrent based on the timing of when we expect to recognize revenue. In the six months ended July 31, 2023, the Company recognized approximately $<span id="xdx_902_eus-gaap--DeferredRevenue_iI_pp0p0_c20230731_zcq9tcrQUHhd" title="Deferred revenue">4,815,000</span> in revenue from deferred revenues outstanding as of January 31, 2023. Revenue allocated to remaining performance obligations was $<span id="xdx_904_eus-gaap--RevenueRemainingPerformanceObligation_iI_pp0p0_c20230731_zi3CkdAwBj17" title="Revenue remaining performance obligation">25,352,000</span> as of July 31, 2023, of which <span id="xdx_905_eus-gaap--RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionExplanation_c20230201__20230731_z8J7T5IVwio1" title="Revenue, remaining performance obligation, expected timing of satisfaction, explanation">the Company expects to recognize approximately 69% over the next 12 months and the remainder thereafter.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Deferred costs (costs to fulfill a contract and contract acquisition costs)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company defers the direct costs, which include salaries and benefits, for professional services related to SaaS contracts as a cost to fulfill a contract. These deferred costs will be amortized on a straight-line basis over the period of expected benefit which is the contractual term. As of July 31, 2023 and January 31, 2023, the Company had deferred costs of $<span id="xdx_90A_eus-gaap--DeferredCostsCurrentAndNoncurrent_iI_pp0p0_c20230731_z3alxbSA0mW9" title="Deferred costs, net">84,000</span> and $<span id="xdx_90D_eus-gaap--DeferredCostsCurrentAndNoncurrent_iI_pp0p0_c20230131_zQrAwB46Xbyb" title="Deferred costs, net">94,000</span>, respectively, net of accumulated amortization of $<span id="xdx_906_eus-gaap--AccumulatedAmortizationOfOtherDeferredCosts_iI_pp0p0_c20230731_zjGNr3Pcd8mi" title="Accumulated amortization of deferred costs">211,000</span> and $<span id="xdx_90C_eus-gaap--AccumulatedAmortizationOfOtherDeferredCosts_iI_pp0p0_c20230131_zfsHC74Xx0P2" title="Accumulated amortization of deferred costs">176,000</span>, respectively. Amortization expense of these costs was $<span id="xdx_909_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20230501__20230731_zV5ZfNdvegGj" title="Deferred costs, amortization expense">17,000</span> and $<span id="xdx_906_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20220501__20220731_zFuJQG9dJsu9" title="Deferred costs, amortization expense">21,000</span> for the three months ended July 31, 2023 and 2022, respectively, and $<span id="xdx_904_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20230201__20230731_z00V4BnePUBk" title="Deferred costs, amortization expense">34,000</span> and $<span id="xdx_906_ecustom--DeferredCostsAmortizationExpenses_pp0p0_c20220201__20220731_z8vdqlh9EYFh" title="Deferred costs, amortization expense">40,000</span> for the six months ended July 31, 2023 and 2022, respectively, and is included in cost of software as a service in the condensed consolidated statements of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contract acquisition costs, which consist of sales commissions paid or payable, are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial and renewal contracts are deferred and then amortized on a straight-line basis over the contract term. As a practical expedient, the Company expenses sales commissions as incurred when the amortization period of related deferred commission costs is expected to be one year or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of July 31, 2023 and January 31, 2023, deferred commission costs paid and payable, which are included on the consolidated balance sheets within other non-current assets totaled $<span id="xdx_90F_ecustom--DeferredCommissionsCostsPaidAndPayable_iI_pp0p0_c20230731__us-gaap--BalanceSheetLocationAxis__us-gaap--OtherNoncurrentAssetsMember_zuBW3Md7fdRi" title="Deferred commissions costs paid and payable">1,325,000</span> and $<span id="xdx_909_ecustom--DeferredCommissionsCostsPaidAndPayable_iI_pp0p0_c20230131__us-gaap--BalanceSheetLocationAxis__us-gaap--OtherNoncurrentAssetsMember_zROeRlatPTHf" title="Deferred commissions costs paid and payable">1,534,000</span>, respectively, net of accumulated amortization of $<span id="xdx_903_ecustom--DeferredCommissionCostsAccumulatedAmortization_iI_c20230731_zrCIcIiZQTM5" title="Accumulated amortization">1,074,000</span> and $<span id="xdx_90F_ecustom--DeferredCommissionCostsAccumulatedAmortization_iI_c20230131_zjmGZAIA7nY3" title="Accumulated amortization">820,000</span>, respectively. Amortization expense associated with deferred sales commissions, which is included in the condensed consolidated statements of operations, was $<span id="xdx_90C_eus-gaap--AmortizationOfDeferredSalesCommissions_c20230501__20230731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zdVaJx4ooHXa" title="Deferred sales commissions">125,000</span> and $<span id="xdx_908_eus-gaap--AmortizationOfDeferredSalesCommissions_c20220501__20220731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zleeSSdXNhI2" title="Deferred sales commissions">95,000</span> for the three months ended July 31, 2023 and 2022, respectively. Amortization expense for the six months ended July 31, 2023 and 2022 was $<span id="xdx_909_eus-gaap--AmortizationOfDeferredSalesCommissions_c20230201__20230731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_znxvWszJpmK1" title="Deferred sales commissions">254,000</span> and $<span id="xdx_908_eus-gaap--AmortizationOfDeferredSalesCommissions_c20220201__20220731__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zAdALbmqTGi8" title="Deferred sales commissions">186,000</span>, respectively. There were no impairment losses for these capitalized costs for these periods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_894_eus-gaap--DisaggregationOfRevenueTableTextBlock_zT5VcJn3M4Yl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following table provides information about disaggregated revenue by type and nature of revenue stream:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zHbdmpwKRj92" style="display: none">SCHEDULE OF DISAGGREGATION OF REVENUE</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230501__20230731_zhRzS6lzsg1" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20220501__20220731_z6I3DtxtJVq9" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20230201__20230731_z8dtQYLxlJ55" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20220201__20220731_z7b1BTPLE0X4" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OverTimeRevenueMember_zcHq7J5mbH6l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Over time revenue</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">5,770,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">5,940,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,028,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">11,804,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PointInTimeRevenueMember_zFTNcNLwo5Yg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Point in time revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0647">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">52,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">74,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,940,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zEf8Nhqa5Kdi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Total revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,770,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,992,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,102,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,927,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> 5770000 5940000 11028000 11804000 52000 74000 5940000 5770000 5992000 11102000 11927000 4815000 25352000 the Company expects to recognize approximately 69% over the next 12 months and the remainder thereafter. 84000 94000 211000 176000 17000 21000 34000 40000 1325000 1534000 1074000 820000 125000 95000 254000 186000 <p id="xdx_84B_ecustom--EquityAwardPolicyTextBlock_zMIUVourkb8i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86B_zjPB2OUS4P8h">Equity Awards</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company accounts for share-based payments based on the grant-date fair value of the awards with compensation cost recognized as expense over the requisite service period, and forfeitures are recognized as incurred. For awards to non-employees, the Company recognizes compensation expense in the same manner as if the entity had paid cash for the goods or services. The Company incurred total compensation expense related to share-based awards for the three and six months ended July 31, 2023 of $<span id="xdx_909_eus-gaap--ShareBasedCompensation_c20230501__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_z0xQk4JOW6Nd" title="Compensation expense related to stock-based award">537,000</span> and $<span id="xdx_903_eus-gaap--ShareBasedCompensation_c20230201__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_zpRwa1PToVf9" title="Compensation expense related to stock-based award">1,109,000</span>, respectively, which includes $<span id="xdx_902_eus-gaap--ShareBasedCompensation_c20230501__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember_zPG3RWCePIR7" title="Compensation expense related to stock-based award">93,000</span> and $<span id="xdx_903_eus-gaap--ShareBasedCompensation_c20230201__20230731__us-gaap--AwardTypeAxis__custom--EquityAwardMember__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember_z8jmSXGFNbP6" title="Compensation expense related to stock-based award">116,000</span>, respectively, of capitalized non-employee stock compensation, compared to share-based compensation expense of $<span id="xdx_907_eus-gaap--ShareBasedCompensation_c20220501__20220731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_zMp1luxHFTy9" title="Compensation expense related to stock-based award">331,000</span> and $<span id="xdx_908_eus-gaap--ShareBasedCompensation_c20220201__20220731__us-gaap--AwardTypeAxis__custom--EquityAwardMember_zGp3hfa0Den6" title="Compensation expense related to stock-based award">657,000</span>, respectively, for the three and six months ended July 31, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of stock options granted are estimated at the date of grant using a Black-Scholes option pricing model. Option pricing model input assumptions such as expected term, expected volatility and risk-free interest rate impact the fair value estimate. These assumptions are subjective and are generally derived from external (such as, risk-free rate of interest) and historical data (such as, volatility factor and expected term). Future grants of equity awards accounted for as share-based compensation could have a material impact on reported expenses depending upon the number, value and vesting period of future awards.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company issues restricted stock awards in the form of Company common stock. The fair value of these awards is based on the market closing price per share on the grant date. For the three and six months ended July 31, 2023, the Company issued <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20230501__20230731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zsHsJXPNVCVk" title="Restricted common shares">0</span> and <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20230201__20230731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zfBWi8KsalAh" title="Restricted common shares">1,085,000</span> shares of restricted common stock to employees, respectively, compared to <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220501__20220731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zqyCdKj8XLWh" title="Restricted common shares">470,000</span> and <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220201__20220731__srt--TitleOfIndividualAxis__custom--EmployeesMember_zXs4PKz5ZNdl" title="Restricted common shares">800,000</span> shares of restricted common stock for the three and six months ended July 31, 2022, respectively. The Company expenses the compensation cost of these awards as the restriction period lapses, which is typically a three-year period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 537000 1109000 93000 116000 331000 657000 0 1085000 470000 800000 <p id="xdx_849_eus-gaap--IncomeTaxPolicyTextBlock_zuM0bngOLHhk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86F_zFcj8mx3rug4">Income Taxes</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax credit and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing net deferred tax assets, the Company considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The Company establishes a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. Refer to Note 6 – Income Taxes for further details.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company provides for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether certain tax positions are more likely than not to be sustained upon examination by tax authorities. At July 31, 2023, the Company believes it has appropriately accounted for any uncertain tax positions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--EarningsPerSharePolicyTextBlock_z0VbWGRMna64" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_864_z9dXjTB16UWl">Net Loss Per Common Share</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company presents basic and diluted earnings per share (“EPS”) data for the Company’s common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s unvested restricted stock awards are considered non-participating securities because holders are not entitled to non-forfeitable rights to dividends or dividend equivalents during the vesting term. Diluted EPS for the Company’s common stock is computed using the treasury stock method.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_899_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zbidWI8SYVRc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following is the calculation of the basic and diluted net loss per share of common stock for the three and six months ended July 31, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BB_zc3ZHAvtQ8h4" style="display: none">SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE OF COMMON STOCK</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230501__20230731_zQO27AwDCALi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220501__20220731_zKiDuES7J3Hb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230201__20230731_zqHgkKEp17Pk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20220201__20220731_zsXnOvpI1fIh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Basic and diluted loss per share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLoss_zpOeBXPQvvu7" style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Net loss</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(2,515,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(3,272,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(5,416,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(6,059,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Basic and diluted net loss per share of common stock from operations</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_902_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20230501__20230731_z0WlbSgOsko" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90E_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20230501__20230731_zYrzqmx5F0Ge" title="Diluted net loss per share of common stock from operations">(0.04</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_900_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20220501__20220731_pdd" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90C_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20220501__20220731_ziGCDdsathwa" title="Diluted net loss per share of common stock from operations">(0.07</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90A_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20230201__20230731_zJZLhTR4lwY7" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_908_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20230201__20230731_zEGgaZrOMhm9" title="Diluted net loss per share of common stock from operations">(0.10</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_902_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20220201__20220731_z9nfpSqtr7Oe" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90E_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20220201__20220731_zuEgdbJO7zSd" title="Diluted net loss per share of common stock from operations">(0.13</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zBw2nNadPnv8" style="vertical-align: bottom; background-color: White"> <td>Weighted average shares outstanding – Basic <span id="xdx_F42_z6j4HNvwSLpf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,357,684</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,231,296</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,164,282</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,129,879</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--EffectOfDilutiveSecuritiesStockOptionsRestrictedStocks_pid_zXv39Kpu3LMj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Effect of dilutive securities – Stock options and Restricted stock <span id="xdx_F4C_zaIZJAwk0gJ5" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0749">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0750">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0751">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0752">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_zPqMzeOsReNb" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Weighted average shares outstanding – Diluted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,357,684</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,231,296</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,164,282</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,129,879</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><span id="xdx_F01_zM9rZy0mzz33" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F15_zXaxOMT7FzHe" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes the effect of vested and excludes the effect of unvested restricted shares of common stock, which are considered non-participating securities. As of July 31, 2023 and 2022, there were <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_znDQ2cvzOYm" title="Diluted earnings per share">2,484,071</span> and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_z8N3S7FojLp8" title="Diluted earnings per share">1,564,031</span> unvested restricted shares of common stock outstanding, respectively.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F00_zNWG3Nuvfor3" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F1C_zEJB1iCIMvp9" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted net loss per share excludes the effect of shares that are anti-dilutive. For the three and six months ended July 31, 2023, diluted earnings per share excludes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230501__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zRaVe6SraN7j" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_908_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zPVMWEGWsJzh" title="Diluted earnings per share">618,958</span></span> outstanding stock options and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_904_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230501__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zfM7bdqE5JXk" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_905_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zYrw2OHs6rp3" title="Diluted earnings per share">2,484,071</span></span> unvested restricted shares of common stock. For the three and six months ended July 31, 2022, diluted earnings per share excludes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220501__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zzPfBGtUro4b" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zV35w8zhTYb6" title="Diluted earnings per share">684,125</span></span> outstanding stock options and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220501__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zpIfFn0Dette" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zuaD8JFLiJT8" title="Diluted earnings per share">1,564,031</span></span> unvested restricted shares of common stock.</span></td></tr> </table> <p id="xdx_8A5_znBMZDIduD4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_899_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zbidWI8SYVRc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following is the calculation of the basic and diluted net loss per share of common stock for the three and six months ended July 31, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BB_zc3ZHAvtQ8h4" style="display: none">SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE OF COMMON STOCK</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230501__20230731_zQO27AwDCALi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220501__20220731_zKiDuES7J3Hb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230201__20230731_zqHgkKEp17Pk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20220201__20220731_zsXnOvpI1fIh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Basic and diluted loss per share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLoss_zpOeBXPQvvu7" style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Net loss</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(2,515,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(3,272,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(5,416,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(6,059,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Basic and diluted net loss per share of common stock from operations</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_902_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20230501__20230731_z0WlbSgOsko" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90E_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20230501__20230731_zYrzqmx5F0Ge" title="Diluted net loss per share of common stock from operations">(0.04</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_900_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20220501__20220731_pdd" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90C_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20220501__20220731_ziGCDdsathwa" title="Diluted net loss per share of common stock from operations">(0.07</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90A_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20230201__20230731_zJZLhTR4lwY7" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_908_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20230201__20230731_zEGgaZrOMhm9" title="Diluted net loss per share of common stock from operations">(0.10</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_902_eus-gaap--IncomeLossFromContinuingOperationsPerBasicShare_c20220201__20220731_z9nfpSqtr7Oe" title="Basic net loss per share of common stock from operations"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpAA__" id="xdx_90E_eus-gaap--IncomeLossFromContinuingOperationsPerDilutedShare_c20220201__20220731_zuEgdbJO7zSd" title="Diluted net loss per share of common stock from operations">(0.13</span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zBw2nNadPnv8" style="vertical-align: bottom; background-color: White"> <td>Weighted average shares outstanding – Basic <span id="xdx_F42_z6j4HNvwSLpf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,357,684</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,231,296</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,164,282</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,129,879</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--EffectOfDilutiveSecuritiesStockOptionsRestrictedStocks_pid_zXv39Kpu3LMj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Effect of dilutive securities – Stock options and Restricted stock <span id="xdx_F4C_zaIZJAwk0gJ5" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0749">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0750">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0751">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0752">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_zPqMzeOsReNb" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Weighted average shares outstanding – Diluted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,357,684</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,231,296</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,164,282</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">47,129,879</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><span id="xdx_F01_zM9rZy0mzz33" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F15_zXaxOMT7FzHe" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes the effect of vested and excludes the effect of unvested restricted shares of common stock, which are considered non-participating securities. As of July 31, 2023 and 2022, there were <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_znDQ2cvzOYm" title="Diluted earnings per share">2,484,071</span> and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_z8N3S7FojLp8" title="Diluted earnings per share">1,564,031</span> unvested restricted shares of common stock outstanding, respectively.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F00_zNWG3Nuvfor3" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F1C_zEJB1iCIMvp9" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted net loss per share excludes the effect of shares that are anti-dilutive. For the three and six months ended July 31, 2023, diluted earnings per share excludes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230501__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zRaVe6SraN7j" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_908_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zPVMWEGWsJzh" title="Diluted earnings per share">618,958</span></span> outstanding stock options and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_904_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230501__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zfM7bdqE5JXk" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_905_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20230201__20230731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zYrw2OHs6rp3" title="Diluted earnings per share">2,484,071</span></span> unvested restricted shares of common stock. For the three and six months ended July 31, 2022, diluted earnings per share excludes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220501__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zzPfBGtUro4b" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zV35w8zhTYb6" title="Diluted earnings per share">684,125</span></span> outstanding stock options and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220501__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zpIfFn0Dette" title="Diluted earnings per share"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBU0lDIEFORCBESUxVVEVEIE5FVCBMT1NTIFBFUiBTSEFSRSBPRiBDT01NT04gU1RPQ0sgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220201__20220731__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedSharesMember_zuaD8JFLiJT8" title="Diluted earnings per share">1,564,031</span></span> unvested restricted shares of common stock.</span></td></tr> </table> -2515000 -3272000 -5416000 -6059000 -0.04 -0.04 -0.07 -0.07 -0.10 -0.10 -0.13 -0.13 56357684 47231296 56164282 47129879 56357684 47231296 56164282 47129879 2484071 1564031 618958 618958 2484071 2484071 684125 684125 1564031 1564031 <p id="xdx_845_ecustom--OtherOperatingCostPolicyTextBlock_zEeTg0zbovU5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zEMbaki6zHc2">Other Operating Costs</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Acquisition-related Costs</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three months and six months ended July 31, 2023, the Company incurred certain acquisition-related costs related to the acquisition of Avelead totaling $<span id="xdx_906_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20230501__20230731_zA4RB1Ehhk44" title="Acquisition related costs">9,000</span> and $<span id="xdx_901_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20230201__20230731_za0fncVu6DX6" title="Acquisition related costs">44,000</span>, respectively, consisting primarily of professional service fees. For the three and six months ended July 31, 2022, the Company incurred acquisition-related costs totaling $<span id="xdx_90B_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20220501__20220731_zxvvwUhtfvP4" title="Acquisition related costs">49,000</span> and $<span id="xdx_908_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20220201__20220731_z32qxtTP50Od" title="Acquisition related costs">139,000</span> respectively, consisting primarily of professional service fees.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 9000 44000 49000 139000 <p id="xdx_842_ecustom--NoncashItemsPolicyTextBlock_zWiH02ISRxZb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zy5q5S0ZZDX1">Non-Cash Items</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the six months ended July 31, 2023, the Company recorded capitalized software purchased with stock, totaling $<span id="xdx_901_eus-gaap--DebtInstrumentDecreaseForgiveness_c20230201__20230731_zurju9QXnmY3" title="Forgiveness of Ppp loan and accrued interest">116,000</span>, as non-cash items related to the condensed consolidated statements of cash flow.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 116000 <p id="xdx_84F_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zJ14CiyVmjGh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_860_zTLqBeB0kBjl">Accounting Pronouncements Recently Adopted</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 1, 2023, the Company adopted ASU No. 2016-13, <i>Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</i> (“ASU 2016-13”), as amended. ASU 2016-13 requires an allowance for expected credit losses to be applied to financial assets at inception and reflect the risk of credit loss over the life of the asset. The Company estimated current expected credit losses based on historical credit loss rates and applied an increase to account for future economic conditions. The Company’s allowance for doubtful accounts as of January 31, 2023, prior to the adoption of ASU 216-13, was $<span id="xdx_90F_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_pp0p0_c20230131_z58DJcbES21c" title="Allowance for doubtful accounts">132,000</span>. The Company estimated the current expected credit loss related to accounts receivable as of the adoption date of February 1, 2023 to be $<span id="xdx_90E_eus-gaap--DeferredFinanceCostsNet_iI_c20230201_zhUa0JEC7dsi" title="Deferred financing cost">96,000</span>. The Company recorded the adjustment in accounting policy change of $<span id="xdx_906_ecustom--AdoptionOfASU_c20230201__20230731_z5a79wZIyIZg" title="Adoption of asu">36,000</span> to the opening accumulated deficit balance for the year of adoption.</span></p> <p id="xdx_893_ecustom--AccountingPronouncementsRecentlyAdoptedTableTextBlock_zluZ2FAKxm79" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zYcAOJWRrDJa" style="display: none">SCHEDULE OF ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">CECL Adoption</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Provision adjustments</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Write-offs &amp; Recoveries</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left; padding-bottom: 1.5pt">Allowance for credit losses</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(<span id="xdx_908_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pp0p0_c20230201__20230731_zTVHts03AfO6" title="Allowance for doubtful accounts">132,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right"><span id="xdx_90B_ecustom--AdoptionOfASU_c20230201__20230731_zTO1u0qUrdal" title="Adoption of asu">36,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--AllowanceForDoubtfulAccountsReceivablePeriodIncreaseDecrease_c20230201__20230731_zkug0SNsB5G3" style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right" title="Provision adjustments"><span style="-sec-ix-hidden: xdx2ixbrl0809">—</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_c20230201__20230731_z39gWdOYtDza" style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right" title="Write offs and Recoveries"><span style="-sec-ix-hidden: xdx2ixbrl0811">—</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(<span id="xdx_90F_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_c20230201__20230731_zkCYfNjyPTZd" title="Allowance for doubtful accounts">96,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr> </table> <p id="xdx_8A0_zdXp9xJQ1y8f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the period ended July 31, 2023, the Company estimated the current expected credit loss related to accounts receivable using historical credit loss rates and applied an adjustment to account for future economic conditions in accordance with ASU 2016-13. The Company had no further impact on the allowance for credit losses during the six month period ended July 31, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 132000 96000 36000 <p id="xdx_893_ecustom--AccountingPronouncementsRecentlyAdoptedTableTextBlock_zluZ2FAKxm79" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zYcAOJWRrDJa" style="display: none">SCHEDULE OF ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">CECL Adoption</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Provision adjustments</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Write-offs &amp; Recoveries</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left; padding-bottom: 1.5pt">Allowance for credit losses</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(<span id="xdx_908_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pp0p0_c20230201__20230731_zTVHts03AfO6" title="Allowance for doubtful accounts">132,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right"><span id="xdx_90B_ecustom--AdoptionOfASU_c20230201__20230731_zTO1u0qUrdal" title="Adoption of asu">36,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--AllowanceForDoubtfulAccountsReceivablePeriodIncreaseDecrease_c20230201__20230731_zkug0SNsB5G3" style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right" title="Provision adjustments"><span style="-sec-ix-hidden: xdx2ixbrl0809">—</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_c20230201__20230731_z39gWdOYtDza" style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right" title="Write offs and Recoveries"><span style="-sec-ix-hidden: xdx2ixbrl0811">—</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(<span id="xdx_90F_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_c20230201__20230731_zkCYfNjyPTZd" title="Allowance for doubtful accounts">96,000</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr> </table> 132000 36000 96000 <p id="xdx_848_ecustom--RecentAccountingPronouncementsNotYetAdoptedPolicyTextBlock_zv9RX7UJ8dih" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_865_z0b38RGlunba">Recent Accounting Pronouncements Not Yet Adopted</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company does not believe there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.</span></p> <p id="xdx_803_eus-gaap--BusinessCombinationDisclosureTextBlock_zfp3CKTp6dF" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 3 — <span id="xdx_82F_zBxZRjNpdsya">BUSINESS COMBINATION</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Avelead Acquisition</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company acquired all of the equity interests of Avelead Consulting, LLC (“Avelead”) as part of the Company’s strategic expansion into the acute-care health care revenue cycle management industry (the “Transaction”). The Transaction was completed on August 16, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 21, 2022, the Company made cash payments of $<span id="xdx_906_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_c20221120__20221121__us-gaap--TypeOfArrangementAxis__custom--UnitPurchaseAgreementMember_zYR7qEy6BbT7" title="Payments to cash acquired">2,012,000</span> and issued <span id="xdx_900_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20221120__20221121__us-gaap--TypeOfArrangementAxis__custom--UnitPurchaseAgreementMember_zvABnFNHAof1" title="Restricted common stock, shares">1,871,037</span> unregistered securities in the form of restricted common stock, par value $<span id="xdx_90B_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20221121__us-gaap--TypeOfArrangementAxis__custom--UnitPurchaseAgreementMember_zI24wRikl58d" title="Common stock, par value">0.01</span> per share, with respect to the first year earnout consideration. The estimated aggregate value of the first year earnout payment is $<span id="xdx_90D_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20221120__20221121__us-gaap--TypeOfArrangementAxis__custom--UnitPurchaseAgreementMember__us-gaap--AwardDateAxis__custom--FirstYearEarnoutMember_z6H8Z2hfYGA9" title="Earnout payment">5,000,000</span>. The second (and final) year earnout payment, if any, will be payable on or about October 15, 2023. These liabilities are reflected at the estimated fair value of the future commitment on the Company’s condensed consolidated balance sheet as Acquisition Earnout Liability.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 2012000 1871037 0.01 5000000 <p id="xdx_801_eus-gaap--LesseeOperatingLeasesTextBlock_zs1eyAVvLlmb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 4 — <span id="xdx_82D_zgXzFXTYzMab">OPERATING LEASES</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We determine whether an arrangement is a lease at inception. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since our lease arrangements do not provide an implicit rate, we use our incremental borrowing rate for the expected remaining lease term at commencement date for new and existing leases in determining the present value of future lease payments. Operating lease expense is recognized on a straight-line basis over the lease term.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Alpharetta Office Lease</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 1, 2021, the Company entered into an agreement with a third-party to sublease its office space in Alpharetta, Georgia. The sublease term was for <span id="xdx_907_ecustom--SubleaseTerm_dtM_c20210929__20211002__us-gaap--TypeOfArrangementAxis__custom--SubleaseAgreementMember_z6xKy0KMOEze" title="Sublease, term">18</span> months, which coincided with the Company’s underlying lease (see below). The Company received $<span id="xdx_90E_eus-gaap--SubleaseIncome_c20210929__20211002__us-gaap--TypeOfArrangementAxis__custom--SubleaseAgreementMember_z3w5cjJ6Jyo4" title="Sublease income">292,000</span> from the sublessee over the term of the sublease. The sublease did not relieve the Company of its original obligation under the lease, and therefore the Company did not adjust the operating lease right-of-use asset and related liability. The sublease terminated on March 31, 2023. For the six months ended July 31, 2023, the Company recorded $<span id="xdx_904_eus-gaap--SubleaseIncome_c20230201__20230731_zwSNFKJMZCw1" title="Sublease income">32,000</span> as other income related to the sublease.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company entered into a lease for office space in Alpharetta, Georgia, on March 1, 2020. The lease terminated on March 31, 2023. At inception, the Company recorded a right-of use asset of $<span id="xdx_90F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20211031__srt--StatementScenarioAxis__custom--AtinceptionMember_zA1siiIPiuVj" title="Operating lease, right of use assets">540,000</span>, and related current and long-term operating lease obligation in the accompanying consolidated balance sheet. The Company used a discount rate of <span id="xdx_907_eus-gaap--LesseeOperatingLeaseDiscountRate_iI_dp_uPure_c20230731_z0suPO60EbHd" title="Lesee discount rate">6.5</span>% to determine the lease liability. For the six months ended July 31, 2023 and 2022, the Company had lease operating costs of approximately $<span id="xdx_901_eus-gaap--OperatingLeaseCost_c20230201__20230731_zfdUtRt05A8a" title="Operating lease cost">32,000</span> and $<span id="xdx_90E_eus-gaap--OperatingLeaseCost_c20220201__20220731_zaGZk4oh8sie" title="Operating lease cost">97,000</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Suwanee Office Lease</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon acquiring Avelead on August 16, 2021 (refer to Note 3 – Business Combination), the Company assumed an operating lease agreement for the corporate office space of Avelead. The lessor is an entity controlled by one of the sellers of Avelead and that seller is a former employee of the Company. The initial 36-month term lease commenced March 1, 2019 and expired on <span id="xdx_90D_eus-gaap--LeaseExpirationDate1_dd_c20210814__20210816__us-gaap--TypeOfArrangementAxis__custom--SuwaneeOfficeLeaseMember_zKAftZUIXHO3" title="Lease expiration date">February 28, 2022</span>. The Company previously renewed the lease for an additional 12-month term which expired February 28, 2023 and was not renewed. For the six months ended July 31, 2023, the Company recorded rent expense of $<span id="xdx_909_eus-gaap--PaymentsForRent_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--SuwaneeOfficeLeaseMember_zn8SFKqCrc2h" title="Payments for rent">6,000</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> P18M 292000 32000 540000 0.065 32000 97000 2022-02-28 6000 <p id="xdx_80A_eus-gaap--DebtDisclosureTextBlock_zC5cewrZpc7h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 5 — <span id="xdx_82C_zYfJCF9fcBH4">DEBT</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89C_eus-gaap--ScheduleOfDebtTableTextBlock_zG8NCggakzei" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding principal balances consisted of the following at:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_zF7RFAd4kYBh" style="display: none">SCHEDULE OF OUTSTANDING DEBT</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20230731_zmiNrMmFux17" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230131_zXAdY8lCVdu6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--DebtInstrumentCarryingAmount_iI_zukKT4Laqyt2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Term loan</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">9,500,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">9,750,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--FinancingCostPayable_iI_z00HSnx5lHAc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Financing cost payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">104,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">69,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredFinanceCostsNet_iNI_di_zpVFbXurKPFe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Deferred financing cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(87,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(105,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_zQyCIXu7NQkk" style="vertical-align: bottom; background-color: White"> <td>Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,517,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,714,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtCurrent_iNI_di_zPVgvVajd2of" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,000,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(750,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtNoncurrent_iI_znHZnEZTy0zf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Non-current portion of debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,517,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,964,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AC_zvwWqpmMyOw5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Term Loan</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 29, 2022, the Company executed a Second Modification to Second Amended and Restated Loan Agreement (the “Second Modification”). The Second Modification includes an expansion of the Company’s total borrowing to include a $<span id="xdx_90D_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20221129__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember_zCTCxSW7Ksgb" title="Line of credit facility, maximum borrowing capacity">2,000,000</span> non-formula revolving line of credit. The revolving line of credit will be co-terminus with the term loan and matures on August 26, 2026. There are no requirements to draw on the line of credit. Amounts outstanding under the line of credit portion of the Second Amended and Restated Loan Agreement bear interest at a per annum rate equal to the Prime Rate (as published in The Wall Street Journal) plus <span id="xdx_902_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_uPure_c20221128__20221129__us-gaap--VariableRateAxis__us-gaap--BaseRateMember__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember_zAdzjal3gyp8" title="Debt instrument, basis spread on variable rate">1.5</span>%, with a Prime “floor” rate of <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20221129__us-gaap--VariableRateAxis__us-gaap--BaseRateMember__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember_zvyIq5UQQRP8" title="Debt instrument, interest rate, stated percentage">3.25</span>%. The Second Modification amended certain financial covenants in the Second Amended and Restated Loan Agreement. At January 31, 2023 and July 31, 2023, there was no outstanding balance on the revolving line of credit.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under the Second Amended and Restated Loan Agreement, the Company has a term loan facility with an initial maximum principal amount of $<span id="xdx_90C_eus-gaap--DebtInstrumentFaceAmount_iI_c20221129__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember_z4UZISsfOah2" title="Principal amount">10,000,000</span>. Amounts outstanding under the Second Amended and Restated Loan Agreement bear interest at a per annum rate equal to the Prime Rate (as published in The Wall Street Journal) plus <span id="xdx_90F_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_uPure_c20221128__20221129__us-gaap--VariableRateAxis__us-gaap--BaseRateMember__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember_zWhWlv6sI7Oa" title="Debt instrument, basis spread on variable rate">1.5</span>%, with a Prime “floor” rate of <span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20221129__us-gaap--VariableRateAxis__us-gaap--BaseRateMember__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember_zakTGAIgTzQ2" title="Debt instrument, interest rate, stated percentage">3.25</span>%. The Second Amended and Restated Loan Agreement has a five-year term, and the maximum principal amount was advanced in a single-cash advance on or about the original closing date (August 2021). Interest is due monthly, and the Company shall make monthly interest-only payments through the one-year anniversary of the original closing date. Under the Second Amended and Restated Loan Agreement, principal repayments are required of $<span id="xdx_902_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_c20210826__us-gaap--TypeOfArrangementAxis__custom--SecurityAgreementMember__us-gaap--LineOfCreditFacilityAxis__custom--BridgeBankMember_zsGO7cEznUc9" title="Long term debt, maturity, year two">500,000</span> in the second year, $<span id="xdx_90A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_c20210826__us-gaap--TypeOfArrangementAxis__custom--SecurityAgreementMember__us-gaap--LineOfCreditFacilityAxis__custom--BridgeBankMember_zY6XuCQy0Bjl" title="Long term debt, maturity, year three">1,000,000</span> in the third year, $<span id="xdx_904_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_c20210826__us-gaap--TypeOfArrangementAxis__custom--SecurityAgreementMember__us-gaap--LineOfCreditFacilityAxis__custom--BridgeBankMember_z3diTybxqtu" title="Long term debt, maturity, year four">2,000,000</span> in the fourth year, and $<span id="xdx_90A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_c20210826__us-gaap--TypeOfArrangementAxis__custom--SecurityAgreementMember__us-gaap--LineOfCreditFacilityAxis__custom--BridgeBankMember_zPBTJNx7JwY5" title="Long term debt, maturity, year five">3,000,000</span> in the fifth year with the remaining outstanding principal balance and all accrued but unpaid interest due in full on the maturity date. The Second Amended and Restated Loan Agreement may also require early repayments if certain conditions are met.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Second Amended and Restated Loan Agreement includes customary financial covenants as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Minimum Cash</span></b>. <span id="xdx_902_eus-gaap--DebtInstrumentCovenantDescription_c20221128__20221129__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember_z3c8gr8VmC3e" title="Debt financial covenants, description">Borrowers shall, at all times, maintain unrestricted cash of Borrowers at Bank in an amount not less than Two Million Dollars ($2,000,000).</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Maximum Debt to ARR Ratio</span></b>. Borrowers’ Maximum Debt to ARR Ratio, measured on a quarterly basis as of the last day of each fiscal quarter, shall not be greater than the amount set forth under the heading “Maximum Debt to ARR Ratio” as of, and for each of the dates appearing adjacent to such “Maximum Debt to ARR Ratio”.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </p> <p id="xdx_89C_ecustom--ScheduleOfMaximumDebtToARRRatioTableTextBlock_z4DxOWcpHIve" style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B2_z6QQZvlSn639" style="display: none">SCHEDULE OF MAXIMUM DEBT TO ARR RATIO</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 75%; margin-right: auto"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; width: 82%; font-weight: bold">Quarter Ending</td><td style="width: 2%; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 16%; font-weight: bold; text-align: left"><p style="text-align: center; margin-top: 0; margin-bottom: 0">Maximum</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">Debt to ARR</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">Ratio</p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>October 31, 2022</td><td> </td> <td style="text-align: right"><span id="xdx_906_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandAndTwentyTwoMember__srt--RangeAxis__srt--MinimumMember_zTrgiPStsop1" title="Maximum Debt to ARR Ratio">0.80</span> to <span id="xdx_90A_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandAndTwentyTwoMember__srt--RangeAxis__srt--MaximumMember_zFpEK9LPYScf" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>January 31, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_902_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_zLFJzdvRFNla" title="Maximum Debt to ARR Ratio">0.70</span> to <span id="xdx_90A_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_zezkuWsCaGg1" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>April 30, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_z3vqxKr6hYAl" title="Maximum Debt to ARR Ratio">0.65</span> to <span id="xdx_907_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_zvSCATdRkcb" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>July 31, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_907_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_zW7cE4rH1eW4" title="Maximum Debt to ARR Ratio">0.60</span> to <span id="xdx_904_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_za6lOSnjG686" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>October 31, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_909_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_zUZCtWUppnPg" title="Maximum Debt to ARR Ratio">0.55</span> to <span id="xdx_904_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_zfhxg5elJtX3" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>January 31, 2024</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyFourMember__srt--RangeAxis__srt--MinimumMember_zy0Q72VJjAF5" title="Maximum Debt to ARR Ratio">0.50</span> to <span id="xdx_907_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyFourMember__srt--RangeAxis__srt--MaximumMember_zmwSNKN1stfl" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> </table> <p id="xdx_8AA_zrEPYDF1HvHi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Maximum Debt to Adjusted EBITDA Ratio</span></b>. Commencing with the quarter ending April 30, 2024, Borrowers’ Maximum Debt to Adjusted EBITDA Ratio, measured on a quarterly basis as of the last day of each fiscal quarter for the trailing four (4) quarter period then ended, shall not be greater than the amount set forth under the heading “Maximum Debt to Adjusted EBITDA Ratio” as of, and for each of the dates appearing adjacent to such “Maximum Debt to Adjusted EBITDA Ratio”.</span></td></tr> </table> <p id="xdx_893_ecustom--ScheduleOfMaximumDebtToAdjustedEBITDARatioTableTextBlock_z7LTQuIsC7a4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BC_ztttk90Bq9Kd" style="display: none">SCHEDULE OF MAXIMUM DEBT TO ADJUSTED EBITDA RATIO</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 75%; margin-right: auto"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; width: 82%; font-weight: bold">Quarter Ending</td><td style="width: 2%; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 16%; font-weight: bold; text-align: left"><p style="text-align: center; margin-top: 0; margin-bottom: 0">Maximum Debt to Adjusted EBITDA</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">Ratio</p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>April 30, 2024</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyFourMember__srt--RangeAxis__srt--MaximumMember_zh4Ji4eb10Y8" title="Maximum Debt to Adjusted EBITDA Ratio">3.50</span> to <span id="xdx_903_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyFourMember__srt--RangeAxis__srt--MinimumMember_zQONOP0HQG2i" title="Maximum Debt to Adjusted EBITDA Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">July 31, 2024 and on the last day of each quarter thereafter</td><td> </td> <td style="text-align: right"><span id="xdx_901_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyFourAndThereafterMember__srt--RangeAxis__srt--MaximumMember_zAURHohunK39" title="Maximum Debt to Adjusted EBITDA Ratio">2.00 </span>to <span id="xdx_904_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyFourAndThereafterMember__srt--RangeAxis__srt--MinimumMember_zpzpkBdneJ4h" title="Maximum Debt to Adjusted EBITDA Ratio">1.00</span></td></tr> </table> <p id="xdx_8A8_zLxZd31tfHm5" style="margin-top: 0; margin-bottom: 0"> </p> <p style="margin-top: 0; margin-bottom: 0"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Fixed Charge Coverage Ratio</span></b>. Commencing with the quarter ending April 30, 2024, Borrowers shall maintain a Fixed Charge Coverage Ratio of not less than <span id="xdx_90E_ecustom--FixedChargeCoverageRatio_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember__srt--RangeAxis__srt--MaximumMember_z2WtIghSInf6" title="Fixed charge coverage ratio">1.20</span> to <span id="xdx_90E_ecustom--FixedChargeCoverageRatio_iI_pid_dp_uPure_c20230731__us-gaap--TypeOfArrangementAxis__custom--SecondModificationAgreementMember__srt--RangeAxis__srt--MinimumMember_zbUjRrWpnfF3" title="Fixed charge coverage ratio">1.00</span>, measured on a quarterly basis as of the last day of each fiscal quarter for the trailing four (4) quarter period then ended.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Second Amended and Restated Loan Agreement also includes customary negative covenants, subject to exceptions, which limit transfers, capital expenditures, indebtedness, certain liens, investments, acquisitions, dispositions of assets, restricted payments, and the business activities of the Company, as well as customary representations and warranties, affirmative covenants and events of default, including cross defaults and a change of control default. The line of credit also is subject to customary prepayment requirements. Substantially all the assets of the Company are collateralized by the Second Amended and Restated Loan Agreement. For the periods ended January 31, 2023 and July 31, 2023, the Company was in compliance with the Second Amended and Restated Loan Agreement covenants. The Company is forecasted to miss certain future covenants. See Note 1 – Basis of Presentation for detail regarding the Company’s assessment as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company records costs related to the maintenance of the Second Amended and Restated Loan Agreement as deferred financing costs, net of the term loan. These deferred financing costs are being amortized over the remaining term of the loan. The Company has incurred $<span id="xdx_90D_eus-gaap--AmortizationOfFinancingCosts_c20210825__20210826__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember_zMtLd9OEh619" title="Amortization of debt issuance costs">250,000</span> in financing costs which becomes payable at the earlier of the term date of the loan, or pre-payment. These costs are being accreted, through interest expense, to the full value of the $<span id="xdx_901_eus-gaap--AccretionExpense_c20210825__20210826__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember_zFVZDVBGjB48" title="Accretion expense">250,000</span> over the remaining term of the loan.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89C_eus-gaap--ScheduleOfDebtTableTextBlock_zG8NCggakzei" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding principal balances consisted of the following at:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_zF7RFAd4kYBh" style="display: none">SCHEDULE OF OUTSTANDING DEBT</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20230731_zmiNrMmFux17" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">July 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230131_zXAdY8lCVdu6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--DebtInstrumentCarryingAmount_iI_zukKT4Laqyt2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Term loan</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">9,500,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">9,750,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--FinancingCostPayable_iI_z00HSnx5lHAc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Financing cost payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">104,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">69,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredFinanceCostsNet_iNI_di_zpVFbXurKPFe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Deferred financing cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(87,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(105,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_zQyCIXu7NQkk" style="vertical-align: bottom; background-color: White"> <td>Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,517,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,714,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtCurrent_iNI_di_zPVgvVajd2of" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,000,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(750,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtNoncurrent_iI_znHZnEZTy0zf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Non-current portion of debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,517,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,964,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 9500000 9750000 104000 69000 87000 105000 9517000 9714000 1000000 750000 8517000 8964000 2000000 0.015 0.0325 10000000 0.015 0.0325 500000 1000000 2000000 3000000 Borrowers shall, at all times, maintain unrestricted cash of Borrowers at Bank in an amount not less than Two Million Dollars ($2,000,000). <p id="xdx_89C_ecustom--ScheduleOfMaximumDebtToARRRatioTableTextBlock_z4DxOWcpHIve" style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B2_z6QQZvlSn639" style="display: none">SCHEDULE OF MAXIMUM DEBT TO ARR RATIO</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 75%; margin-right: auto"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; width: 82%; font-weight: bold">Quarter Ending</td><td style="width: 2%; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 16%; font-weight: bold; text-align: left"><p style="text-align: center; margin-top: 0; margin-bottom: 0">Maximum</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">Debt to ARR</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">Ratio</p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>October 31, 2022</td><td> </td> <td style="text-align: right"><span id="xdx_906_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandAndTwentyTwoMember__srt--RangeAxis__srt--MinimumMember_zTrgiPStsop1" title="Maximum Debt to ARR Ratio">0.80</span> to <span id="xdx_90A_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandAndTwentyTwoMember__srt--RangeAxis__srt--MaximumMember_zFpEK9LPYScf" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>January 31, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_902_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_zLFJzdvRFNla" title="Maximum Debt to ARR Ratio">0.70</span> to <span id="xdx_90A_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_zezkuWsCaGg1" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>April 30, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_z3vqxKr6hYAl" title="Maximum Debt to ARR Ratio">0.65</span> to <span id="xdx_907_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_zvSCATdRkcb" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>July 31, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_907_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_zW7cE4rH1eW4" title="Maximum Debt to ARR Ratio">0.60</span> to <span id="xdx_904_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_za6lOSnjG686" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>October 31, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_909_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MinimumMember_zUZCtWUppnPg" title="Maximum Debt to ARR Ratio">0.55</span> to <span id="xdx_904_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--OctoberThirtyOneTwoThousandTwentyThreeMember__srt--RangeAxis__srt--MaximumMember_zfhxg5elJtX3" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>January 31, 2024</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyFourMember__srt--RangeAxis__srt--MinimumMember_zy0Q72VJjAF5" title="Maximum Debt to ARR Ratio">0.50</span> to <span id="xdx_907_ecustom--MaximumDebtToArrRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JanuaryThirtyOneTwoThousandTwentyFourMember__srt--RangeAxis__srt--MaximumMember_zmwSNKN1stfl" title="Maximum Debt to ARR Ratio">1.00</span></td></tr> </table> 0.0080 0.0100 0.0070 0.0100 0.0065 0.0100 0.0060 0.0100 0.0055 0.0100 0.0050 0.0100 <p id="xdx_893_ecustom--ScheduleOfMaximumDebtToAdjustedEBITDARatioTableTextBlock_z7LTQuIsC7a4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BC_ztttk90Bq9Kd" style="display: none">SCHEDULE OF MAXIMUM DEBT TO ADJUSTED EBITDA RATIO</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 75%; margin-right: auto"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; width: 82%; font-weight: bold">Quarter Ending</td><td style="width: 2%; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 16%; font-weight: bold; text-align: left"><p style="text-align: center; margin-top: 0; margin-bottom: 0">Maximum Debt to Adjusted EBITDA</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">Ratio</p></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>April 30, 2024</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyFourMember__srt--RangeAxis__srt--MaximumMember_zh4Ji4eb10Y8" title="Maximum Debt to Adjusted EBITDA Ratio">3.50</span> to <span id="xdx_903_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--AprilThirtyTwoThousandTwentyFourMember__srt--RangeAxis__srt--MinimumMember_zQONOP0HQG2i" title="Maximum Debt to Adjusted EBITDA Ratio">1.00</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">July 31, 2024 and on the last day of each quarter thereafter</td><td> </td> <td style="text-align: right"><span id="xdx_901_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyFourAndThereafterMember__srt--RangeAxis__srt--MaximumMember_zAURHohunK39" title="Maximum Debt to Adjusted EBITDA Ratio">2.00 </span>to <span id="xdx_904_ecustom--MaximumDebtToAdjustedEbitdaRatio_iI_pid_dp_uPure_c20230731__srt--StatementScenarioAxis__custom--JulyThirtyOneTwoThousandTwentyFourAndThereafterMember__srt--RangeAxis__srt--MinimumMember_zpzpkBdneJ4h" title="Maximum Debt to Adjusted EBITDA Ratio">1.00</span></td></tr> </table> 0.0350 0.0100 0.0200 0.0100 0.0120 0.0100 250000 250000 <p id="xdx_80C_eus-gaap--IncomeTaxDisclosureTextBlock_zZh0rubWq5J8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 6 — <span id="xdx_821_zgbUJXvj421l">INCOME TAXES</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Income tax expense increased to $<span id="xdx_903_eus-gaap--IncomeTaxExpenseBenefit_c20230201__20230731_zNKxqgQfmUG6">61,000</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">for the six months ended July 31, 2023 compared to $<span id="xdx_90C_eus-gaap--IncomeTaxExpenseBenefit_c20220201__20220731_zKGk7Sqw2AW4">13,000</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">in the prior year comparable period. </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The effective income tax rate on continuing operations of approximately (<span id="xdx_908_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_c20230201__20230731_zkuWkMyffnq4">1</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)% differs from our combined federal and state statutory rate of <span id="xdx_90D_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20230201__20230731_zCiywWGAyLKc">25</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% primarily due to the full valuation allowance the Company currently maintains on its net deferred tax asset.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has recorded $<span id="xdx_900_eus-gaap--UnrecognizedTaxBenefits_iI_c20230731_zRf8S0h2itMi" title="Uncertain tax positions">342,000</span> and $<span id="xdx_908_eus-gaap--UnrecognizedTaxBenefits_iI_c20230131_z4FjtYU6OOP8" title="Uncertain tax positions">333,000</span> in reserves for uncertain tax positions as of July 31, 2023 and January 31, 2023, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_903_eus-gaap--IncomeTaxExaminationDescription_c20230201__20230731_zf7FGCpUzP3c" title="Income tax description">The Company and its subsidiaries are subject to U.S. federal income tax as well as income taxes in multiple state and local jurisdictions. The Company has concluded all U.S. federal tax matters for years through January 31, 2019. All material state and local income tax matters have been concluded for years through January 31, 2018. The Company is no longer subject to IRS examination for periods prior to the tax year ended January 31, 2019; however, carryforward losses that were generated prior to the tax year ended January 31, 2019 may still be adjusted by the IRS if they are used in a future period</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 61000 13000 0.01 0.25 342000 333000 The Company and its subsidiaries are subject to U.S. federal income tax as well as income taxes in multiple state and local jurisdictions. The Company has concluded all U.S. federal tax matters for years through January 31, 2019. All material state and local income tax matters have been concluded for years through January 31, 2018. The Company is no longer subject to IRS examination for periods prior to the tax year ended January 31, 2019; however, carryforward losses that were generated prior to the tax year ended January 31, 2019 may still be adjusted by the IRS if they are used in a future period <p id="xdx_803_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_z4QkZCpHGSt8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 7 — <span id="xdx_821_zSr0r0gHjrBj">EQUITY</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Capital Raise</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 24, 2022, the Company entered into purchase agreements with certain investors pursuant to which the Company agreed to issue and sell in a registered direct offering (the “2022 Offering”) an aggregate of <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20221023__20221024__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyTwoOfferingMember_zSGpfM6JFI91" title="Number of shares issued">6,299,989</span> shares of common stock, par value $<span id="xdx_904_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20221024__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyTwoOfferingMember_z284TlMz6Esf" title="Common stock par value">0.01</span> per share, at a purchase price of $<span id="xdx_90A_eus-gaap--SharesIssuedPricePerShare_iI_c20221024__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyTwoOfferingMember_zBJ3Fiu6cRnl" title="Shares issued, price per share">1.32</span> per share. The gross proceeds to the Company from the 2022 Offering were approximately $<span id="xdx_90C_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20221023__20221024__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyTwoOfferingMember_zTDOyCAzqOBl" title="Proceeds from issuance of common stock">8,316,000</span>. The Company used the proceeds of the 2022 Offering for general corporate purposes. The 2022 Offering closed on October 26, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Registration of Shares Issued to 180 Consulting</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 22, 2022, the Company filed a Registration Statement on Form S-3 (Registration No. 333-265773) for the purpose of registering for resale <span id="xdx_904_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20220622__us-gaap--RelatedPartyTransactionAxis__custom--OneHundredEightyConsultingLLCMember_z0394bVp3REd" title="Common stock issued for resale">272,653</span> shares of common stock issued to 180 Consulting, LLC (“180 Consulting”). The Registration Statement was declared effective by the SEC on July 1, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 28, 2023, the Company filed a Registration Statement on Form S-3 (Registration No. 333-272993) for purpose of registering for resale <span id="xdx_901_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20230628__us-gaap--RelatedPartyTransactionAxis__custom--OneHundredEightyConsultingLLCMember_zhRXxjGtKS45" title="Common stock issued for resale">394,127</span> shares of common stock issued to 180 Consulting, LLC (“180 Consulting”). The Registration Statement was declared effective by the SEC on July 10, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Authorized Shares Increase</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At the Annual Meeting of Stockholders held on June 7, 2022, the Company’s stockholders approved an amendment to the Streamline Health Solutions, Inc. Third Amended and Restated 2013 Stock Incentive Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder by <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized_c20230201__20230731_zFaHhQGE5Vg9" title="Number of additional shares authorized to issue">2,000,000</span> shares, from <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_c20230731__us-gaap--PlanNameAxis__custom--TwoThousandThirteenIncentiveCompensationPlanMember__us-gaap--AwardTypeAxis__custom--StockOptionsMember__srt--RangeAxis__srt--MinimumMember_zOH0Xm1ZTSU3" title="Number of shares authorized to issue">8,223,246</span> shares to <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_c20230731__us-gaap--PlanNameAxis__custom--TwoThousandThirteenIncentiveCompensationPlanMember__us-gaap--AwardTypeAxis__custom--StockOptionsMember__srt--RangeAxis__srt--MaximumMember_zarYb0EsAHFi" title="Number of shares authorized to issue">10,223,246</span> shares. The Company’s stockholders also approved an amendment to the Company’s Certificate of Incorporation, as amended, to increase the total number of authorized shares of the Company’s common stock from <span id="xdx_905_eus-gaap--CommonStockSharesAuthorized_iI_c20230730_zN5vIBtbJz2d" title="Common stock, shares authorized">65,000,000</span> shares to <span id="xdx_903_eus-gaap--CommonStockSharesAuthorized_iI_c20230731_znvS4LcqKdFf" title="Common stock, shares authorized">85,000,000</span> shares.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At the Annual Meeting of Stockholders held on June 15, 2023, the Company’s stockholders approved an amendment to the Streamline Health Solutions, Inc. Third Amended and Restated 2013 Stock Incentive Plan to increase the available number of shares of the Company’s common stock authorized for issuance thereunder by <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized_c20230615__20230615_zzPuP410voTl" title="Number of additional shares authorized to issue">1,000,000</span> shares, from<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_c20230615__us-gaap--PlanNameAxis__custom--TwoThousandThirteenIncentiveCompensationPlanMember__us-gaap--AwardTypeAxis__custom--StockOptionsMember__srt--RangeAxis__srt--MinimumMember_zlgXKDfgLKll" title="Number of shares authorized to issue"> 10,223,246 </span>shares to <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_c20230615__us-gaap--PlanNameAxis__custom--TwoThousandThirteenIncentiveCompensationPlanMember__us-gaap--AwardTypeAxis__custom--StockOptionsMember__srt--RangeAxis__srt--MaximumMember_zCiuUL0hoyF7" title="Number of shares authorized to issue">11,223,246</span> shares.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 6299989 0.01 1.32 8316000 272653 394127 2000000 8223246 10223246 65000000 85000000 1000000 10223246 11223246 <p id="xdx_809_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zL5f4lvzvAmh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 8 —<span id="xdx_821_zG5dD96R04Ra"> COMMITMENTS AND CONTINGENCIES</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Consulting Agreement with 180 Consulting, LLC</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 19, 2020, the Company entered into a Master Services Agreement (the “MSA”) with 180 Consulting, pursuant to which 180 Consulting has provided and will continue to provide a variety of consulting services in support of eValuator products including product management, operational consulting, staff augmentation, internal systems platform integration and software engineering services, among others, through separate executed statements of work (“SOWs”). On September 20, 2021, the Company entered into a separate MSA in support of Avelead products. Certain of the SOWs include the ability of 180 Consulting to earn common stock of the company at a conversion rate to be calculated 20 days after the execution of the related SOW. The MSA includes a termination clause upon a 90-day written notice. While no related party has a direct or indirect material interest in this MSA or the related SOWs, individuals providing services to the Company under the MSA and the SOWs may share workspace and administrative costs with 121G Consulting, LLC (“121G”). [Mr. Green is a “member” of 121G, and, accordingly, has a financial interest in that entity.] 180 Consulting earned <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20230501__20230731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zhbfZrUpf5u3" title="Stock issued during period, shares, issued for services">131,054</span> and <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zHV0Ddizmdt7" title="Stock issued during period, shares, issued for services">258,153</span> shares for the three and six months ended July 31, 2023, respectively, and has earned an aggregate of <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20230701__20230731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zqv5bxDOSyI1" title="Stock issued during period, shares, issued for services">1,173,357</span> shares of the Company’s common stock through July 31, 2023. 180 Consulting earned <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20220501__20220731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zQ7gXn5RL2b" title="Stock issued during period, shares, issued for services">53,836</span> and <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20220201__20220731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_z6P1mKNIivu2" title="Stock issued during period, shares, issued for services">109,906</span> shares for the three and six months ended July 31, 2022, respectively. For services rendered by 180 Consulting during the three and six months ended July 31, 2023, the Company incurred fees of $<span id="xdx_901_eus-gaap--ProfessionalFees_pp0p0_c20230501__20230731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_ztPIkIlUKfaj" title="Incurred fees">966,000</span> and $<span id="xdx_90F_eus-gaap--ProfessionalFees_pp0p0_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zPENBLtiFdm4" title="Incurred fees">1,919,000</span>, respectively, and capitalized non-employee stock compensation of $<span id="xdx_90E_eus-gaap--ShareBasedCompensation_pp0p0_c20230501__20230731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember_zDYjU1XqriW3" title="Non employee stock compensation">93,000</span> and $<span id="xdx_907_eus-gaap--ShareBasedCompensation_pp0p0_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember_zdceSaCQlbP4" title="Non employee stock compensation">116,000</span>, respectively. The Company paid fees of $<span id="xdx_903_eus-gaap--ProfessionalFees_pp0p0_c20220501__20220731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zp4iIotgRO71" title="Incurred fees">578,000</span> and $<span id="xdx_90A_eus-gaap--ProfessionalFees_pp0p0_c20220201__20220731__us-gaap--TypeOfArrangementAxis__custom--MasterServicesAgreementMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zAsaoq4IHq83" title="Incurred fees">1,030,000</span> for services rendered by 180 Consulting during the three and six months ended July 31, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inclusive of the MSA executed with 180 Consulting are SOWs that provide for the Company to sublicense software through 180 Consulting that is owned by 121G. This is a services agreement for access to software that assists the Company in implementing and integrating with our clients’ technology. The license agreement is designed such that there is no material financial benefit that accrues to 121G. 180 Consulting licenses the software from 121G at cost. The Company paid approximately $<span id="xdx_908_eus-gaap--ProfessionalFees_pp0p0_c20230501__20230731__us-gaap--TypeOfArrangementAxis__custom--SOWMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zjDqP1DXjRTh" title="Professional fees">264,000 </span>and $<span id="xdx_908_eus-gaap--ProfessionalFees_pp0p0_c20230201__20230731__us-gaap--TypeOfArrangementAxis__custom--SOWMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zWXOqGSNcLKf" title="Professional fees">381,000</span> for the SOWs that include the sublicense agreement for the three and six months ended July 31, 2023, respectively, and $<span id="xdx_90B_eus-gaap--ProfessionalFees_pp0p0_c20220501__20220731__us-gaap--TypeOfArrangementAxis__custom--SOWMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zsG9xvABxTu5" title="Professional fees">57,000</span> and $<span id="xdx_901_eus-gaap--ProfessionalFees_pp0p0_c20210201__20220731__us-gaap--TypeOfArrangementAxis__custom--SOWMember__dei--LegalEntityAxis__custom--OneHundredEightyConsultingLLCMember_zxsyqDGw9l3i" title="Professional fees">140,000</span> for the three and six months ended July 31, 2022, respectively, which are included in the aforementioned totals above.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 131054 258153 1173357 53836 109906 966000 1919000 93000 116000 578000 1030000 264000 381000 57000 140000 <p id="xdx_800_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zkpi1wgQJLBg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 9 - <span id="xdx_822_zGpkPiVEzdG2">RELATED PARTY TRANSACTIONS</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Refer to Note 3 – Business Combination. The Company acquired Avelead on August 16, 2021. Accordingly, the Company assumed a lease for corporate office space from a selling equity-holder of Avelead that is now employed by the Company. This lease term ended February 2023. For the three and six months ended July 31, 2023, the Company recorded rent expense of $<span id="xdx_908_eus-gaap--PaymentsForRent_c20230501__20230731_zn86w8GdZl1h" title="Rent expense">0</span> and $<span id="xdx_902_eus-gaap--PaymentsForRent_c20230201__20230731_z8Uonj7F0eMj" title="Rent expense">6,000</span>, respectively. For the three and six months ended July 31, 2022, the Company recorded rent expense of $<span id="xdx_909_eus-gaap--PaymentsForRent_c20220501__20220731_zIrveN5g67o" title="Rent expense">18,000</span> and $<span id="xdx_90C_eus-gaap--PaymentsForRent_c20220201__20220731_zxmyBrsEAHxe" title="Rent expense">37,000</span>, respectively (refer to Note 4 – Operating Leases).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 0 6000 18000 37000 <p id="xdx_805_eus-gaap--SubsequentEventsTextBlock_zhOqviJO8qPj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 10 — <span id="xdx_82F_zF4bki3jznM4">SUBSEQUENT EVENTS</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 1, 2023, the Company exercised its right to terminate an employee in accordance with such employee’s employment agreement without cause. <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardTermsOfAward_c20230901__20230901__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z3aXMmR4IFq9" title="Share-based compensation arrangement by share-based payment award, terms of award">In connection with the termination, on September 1, 2023, the Company accelerated the vesting of approximately 150,000 previously outstanding and unvested shares of restricted common stock of the Company (the “Restricted Stock”) held by such employee prior to September 1, 2023. The Company believed it would provide goodwill and future benefit to accelerate the vesting of the 150,000 shares of Restricted Stock for this employee, with fair value totaling approximately $183,000 in stock compensation which will be recognized prospectively and immediately upon vesting, reversing any prior compensation expense recorded. This employee will also forfeit 500,000 options in connection with his termination. The employee is eligible for six months’ severance and certain medical costs due to the termination, totaling approximately $170,000.</span></span></p> In connection with the termination, on September 1, 2023, the Company accelerated the vesting of approximately 150,000 previously outstanding and unvested shares of restricted common stock of the Company (the “Restricted Stock”) held by such employee prior to September 1, 2023. The Company believed it would provide goodwill and future benefit to accelerate the vesting of the 150,000 shares of Restricted Stock for this employee, with fair value totaling approximately $183,000 in stock compensation which will be recognized prospectively and immediately upon vesting, reversing any prior compensation expense recorded. This employee will also forfeit 500,000 options in connection with his termination. The employee is eligible for six months’ severance and certain medical costs due to the termination, totaling approximately $170,000. The fair value of the acquisition earnout liability is based upon a probability-weighted discounted cash flow that was completed at the date of acquisition and updated as of July 31, 2023. The change in the fair value of the acquisition earnout liability decreased $359,000 and $723,000 for the three and six months ended July 31, 2023. The change in the fair value is recognized in “Acquisition earnout valuation adjustments” in the accompanying condensed consolidated statement of operations. Includes the effect of vested and excludes the effect of unvested restricted shares of common stock, which are considered non-participating securities. As of July 31, 2023 and 2022, there were 2,484,071 and 1,564,031 unvested restricted shares of common stock outstanding, respectively. Diluted net loss per share excludes the effect of shares that are anti-dilutive. For the three and six months ended July 31, 2023, diluted earnings per share excludes 618,958 outstanding stock options and 2,484,071 unvested restricted shares of common stock. For the three and six months ended July 31, 2022, diluted earnings per share excludes 684,125 outstanding stock options and 1,564,031 unvested restricted shares of common stock.