Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended: July 31, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ___________ to ____________

Commission File Number: 001-40597

Mama’s Creations, Inc.

(Exact name of Registrant as specified in its charter)


Nevada			27-0607116
(State or other jurisdiction of incorporation)			(IRS Employer ID No.)

25 Branca Road

East Rutherford, NJ 07073

(Address of principal executive offices and zip Code)

(201) 531-1212

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(g) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on which registered

Common Stock, par value $0.00001

MAMA

Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files. Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	o	Accelerated filer	o

Non-accelerated filer	x	Smaller reporting company	x

		Emerging Growth Company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of September 9, 2024, there were 37,577,493 shares outstanding of the registrant’s common stock.

Table of Contents

TABLE OF CONTENTS


		Page
	Cautionary Statement Regarding Forward-Looking Statements	1

	PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements.	F-1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	2

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	6

Item 4.	Controls and Procedures.	6

	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings.	7

Item 1A.	Risk Factors.	7

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	7

Item 3.	Defaults Upon Senior Securities.	7

Item 4.	Mine Safety Disclosures.	7

Item 5.	Other Information.	7

Item 6.	Exhibits.	8

Signatures		9

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this report are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Exchange Act. The forward-looking statements involve substantial risks and uncertainties. All statements, other than statements related to present facts or current conditions or of historical facts, contained in this report, including statements regarding our strategy, future operations, future financial position, future revenues, and projected costs, prospects, plans and objectives of management, are forward-looking statements. Accordingly, these statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in them. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements are not guarantees of future performance and our actual results could differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include:

•the impacts of public health emergencies, such as the COVID-19 pandemic, on our business, financial condition and results of operations, and our inability to mitigate such impacts;

•the adequacy of our liquidity to pursue our business objectives;

•reliance on a limited number of customers;

•loss or retirement of key executives, including prior to identifying a successor;

•adverse economic conditions or intense competition;

•pricing pressures in the market and lack of control over the pricing of raw materials and freight;

•entry of new competitors and products;

•adverse federal, state and local government regulation (including, but not limited to, the Food and Drug Administration);

•liability related to the consumption of our products

•ability to secure placement of our products in key retail locations;

•wage and price inflation;

•maintenance of quality control; and

•issues related to the enforcement of our intellectual property rights.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to “Item 1A. Risk Factors” in this report and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K, and to subsequent reports and registration statements filed from time to time with the SEC. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this report. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

MAMA’S CREATIONS, INC.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

July 31, 2024


			Page(s)

Condensed Consolidated Balance Sheets as of July 3 1 , 2024 (unaudited) and January 31, 2024			F-2

Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 31 , 2024 and 2023 (unaudited)			F-3

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended July 3 1 , 2024 and 2023 (unaudited)			F-5

Condensed Consolidated Statements of Cash Flows for the Six Months Ended July 31 , 2024 and 2023 (unaudited)			F-9

Notes to Condensed Consolidated Financial Statements (unaudited)			F-10

F-1

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Mama’s Creations, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)


	July 31, 2024		January 31, 2024
	(Unaudited)
Assets:

Current Assets:
Cash and cash equivalents	$	7,368	$	11,022
Accounts receivable, net	8,126		7,859
Inventories, net	2,848		3,310
Prepaid expenses and other current assets	1,364		1,375
Total current assets	19,706		23,566

Property, plant, and equipment, net	7,272		4,436
Intangible assets, net	4,211		4,979
Goodwill	8,633		8,633
Operating lease right of use assets, net	2,643		2,889
Deferred tax asset	390		503
Deposits	95		95
Total Assets	$	42,950	$	45,101

Liabilities and Stockholders’ Equity:

Liabilities:
Current Liabilities:
Accounts payable and accrued expenses	$	9,793	$	12,425
Term loan, net of unamortized debt discount of $28 and $38, respectively	1,524		1,514
Operating lease liabilities	428		434
Finance leases payable	358		367
Promissory notes – related parties	2,250		1,950
Total current liabilities	14,353		16,690

Line of credit	—		—
Operating lease liabilities – net of current	2,278		2,515
Finance leases payable – net of current	1,044		1,062
Promissory note – related party, net of current	750		2,250
Term loan – net of current	2,228		3,003
Total long-term liabilities	6,300		8,830

Total Liabilities	20,653		25,520

Commitments and contingencies (Notes 9 and 10)

Stockholders’ Equity:
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of July 31, 2024 and January 31, 2024, respectively, 0 shares outstanding as of July 31, 2024 and January 31, 2024, respectively	-		-
Series B Preferred stock, $0.00001 par value; 200,000 shares authorized; 0 and 0 issued and outstanding as of July 31, 2024 and January 31, 2024 respectively	-		-
Preferred stock, $0.00001 par value; 19,680,000 shares authorized; no shares issued and outstanding	-		-
Common stock, $0.00001 par value; 250,000,000 shares authorized; 37,663,041 and 37,488,239 shares issued as of July 31, 2024 and January 31, 2024, respectively, 37,433,041 and 37,258,239 shares outstanding as of July 31, 2024 and January 31, 2024, respectively	-		-
Additional paid in capital	24,293		23,278
Accumulated deficit	(1,846)		(3,547)
Less: Treasury stock, 230,000 shares at cost	(150)		(150)
Total Stockholders’ Equity	22,297		19,581
Total Liabilities and Stockholders’ Equity	$	42,950	$	45,101

See accompanying notes to the condensed consolidated financial statements.

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Mama’s Creations, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share data)


	For the Three Months Ended July 31,				For the Six Months Ended July 31,
	2024		2023		2024		2023

Net sales	$	28,382	$	24,790	$	58,220	$	47,911

Costs of sales	21,503		17,284		43,878		34,034

Gross profit	6,879		7,506		14,342		13,877

Operating expenses:
Research and development	93		95		197		166
Selling, general and administrative expenses	5,174		5,136		11,760		9,493
Total operating expenses	5,267		5,231		11,957		9,659

Income from operations	1,612		2,275		2,385		4,218

Other income (expenses)
Interest expense	(122)		(182)		(249)		(359)
Interest income	63		—		155		—
Amortization of debt discount	(4)		(6)		(10)		(11)
Other income	—		7		—		27
Total other expenses	(63)		(181)		(104)		(343)

Net income before income tax provision and income from equity method investment	1,549		2,094		2,281		3,875

Income from equity method investment	—		78		—		223
Income tax expense	(401)		(430)		(580)		(954)

Net income	1,148		1,742		1,701		3,144

Less: series B preferred dividends	—		(21)		-		(49)

Net Income available to common stockholders	1,148		1,721		1,701		3,095

Net income per common share
– basic	$	0.03	$	0.05	$	0.05	$	0.09
– diluted	$	0.03	$	0.05	$	0.04	$	0.08

Weighted average common shares outstanding
– basic	37,336		36,855		37,298		36,628
– diluted	39,604		37,490		39,535		37,195

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See accompanying notes to the condensed consolidated financial statements.

F-4

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Mama’s Creations, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

(in thousands)

For the Period from May 1, 2024 through July 31, 2024


	Series A Preferred Stock			Series B Preferred Stock			Common Stock			Treasury Stock			Additional Paid In		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Capital		Deficit		Equity
Balance, May 1, 2024	-	$	-	-	$	-	37,488	$	-	(230)	$	(150)	$	23,490	$	(2,994)	$	20,346

Stock based compensation	-	-		-	-		77	-		-	-		316		-		316

Stock issued for the exercise of options and warrants	-	-		-	-		30	-		-	-		37		-		37

Issuance of shares for director settlement	-	-		-	-		68	-		-	-		450		-		450

Net income	-	-		-	-		-	-		-	-		-		1,148		1,148

Balance, July 31, 2024	-	$	-	-	$	-	37,663	$	-	(230)	$	(150)	$	24,293	$	(1,846)	$	22,297

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For the Period from May 1, 2023 through July 31, 2023


	Series A Preferred Stock			Series B Preferred Stock			Common Stock			Treasury Stock			Additional Paid In		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Capital		Deficit		Equity
Balance, May 1, 2023	-	$	-	55	$	-	36,485	$	—	(230)	$	(150)	$	22,798	$	(8,685)	$	13,963

Stock based compensation	-	-		-	-		20	-		-	-		105		-		105

Stock issued for the exercise of options and warrants	-	-		-	-		20	-		-	-		9		-		9

Conversion of series B preferred stock to common stock	-	-		(55)	-		819	-		-	-		-		-		-

Series B Preferred dividend	-	-		-	-		-	-		-	-		-		(21)		(21)

Net income	-	-		-	-		-	-		-	-		-		1,742		1,742

Balance, July 31, 2023	-	$	-	-	$	-	37,344	$	—	(230)	$	(150)	$	22,912	$	(6,964)	$	15,798

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For the Period from February 1, 2024 through July 31, 2024


	Series A Preferred Stock		Series B Preferred Stock		Common Stock		Treasury Stock		Additional Paid In	Accumulated	Stockholders’
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Capital	Deficit	Equity
Balance, February 1, 2024	-	-	-	-	37,488	-	(230)	(150)	23,278	(3,547)	19,581

Stock based compensation	-	-	-	-	77	-	-	-	521	-	521

Stock issued for the exercise of options	-	-	-	-	30	-	-	-	44	-	44

Issuance of shares for director settlement	-	-	-	-	68	-	-	-	450	-	450

Net income	-	-	-	-	-	-	-	-	-	1,701	1,701

Balance, July 31, 2024	-	-	-	-	37,663	-	(230)	(150)	24,293	(1,846)	22,297

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For the Period from February 1, 2023 through July 31, 2023


	Series A Preferred Stock		Series B Preferred Stock		Common Stock		Treasury Stock		Additional Paid In	Accumulated	Stockholders’
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Capital	Deficit	Equity
Balance, February 1, 2023	-	-	55	-	36,318	-	(230)	(150)	22,724	(10,059)	12,515

Stock based compensation	-	-	-	-	20	-	-	-	160	-	160

Stock issued for the exercise of options and warrants	-	-	-	-	187	-	-	-	28	-	28

Conversion of series B preferred stock to common stock	-	-	(55)	-	819	-	-	-	-	-	-

Series B Preferred dividend	-	-	-	-	-	-	-	-	-	(49)	(49)

Net Income	-	-	-	-	-	-	-	-	-	3,144	3,144

Balance, July 31, 2023	-	-	-	-	37,344	-	(230)	(150)	22,912	(6,964)	15,798

See accompanying notes to the condensed consolidated financial statements.

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Mama’s Creations, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)


	For the Six Months Ended July 31,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,701	$	3,144
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	606		512
Amortization of debt discount	10		11
Amortization of right of use assets	270		112
Amortization of intangibles	768		304
Stock-based compensation	521		110
Allowance for obsolete inventory	-		93
Change in deferred tax asset	113		649
Income from equity method investment	-		(223)
Changes in operating assets and liabilities:
Allowance for doubtful accounts	-		140
Accounts receivable	(267)		1,127
Inventories	462		234
Prepaid expenses and other current assets	(522)		347
Security deposits	-		(18)
Accounts payable and accrued expenses	(2,161)		(3,049)
Operating lease liability	(267)		(135)
Net Cash Provided by Operating Activities	1,234		3,358

CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for fixed assets	(2,740)		(253)
Cash paid for investment in Chef Inspirational Foods, LLC, net	-		(646)
Net Cash (Used in) Investing Activities	(2,740)		(899)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of term loan	(776)		(776)
Repayment of line of credit, net	-		(390)
Repayment of related party note	(1,200)		-
Repayment of finance lease obligations	(196)		(93)
Payment of Series B Preferred dividends	-		(49)
Proceeds from exercise of stock options	44		28
Net Cash (Used in) Financing Activities	(2,128)		(1,280)

Net (Decrease) Increase in Cash	(3,634)		1,179

Cash and cash equivalents at beginning of period	11,022		4,378

Cash and cash equivalents at end of period	$	7,388	$	5,557

SUPPLEMENTARY CASH FLOW INFORMATION:
Cash Paid During the Period for:
Income taxes	$	871	$	113
Interest	$	223	$	313

SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of series B preferred stock to common stock	$	-	$	-
Finance lease asset additions	$	169	$	903
Right of use asset recognized	$	873	$	-
Write-off of right of use asset	$	897	$	-
Related party debt incurred for purchase of Chef Inspirational Foods, LLC	$	-	$	2,700
Settlement of liability in common stock	$	-	$	50
Issuance of stock for director settlement	$	450	$	-
Receipt of fixed assets for deposits which were previously placed	$	533	$	-

See accompanying notes to the condensed consolidated financial statements.

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Mama’s Creations, Inc.

Notes to Condensed Consolidated Financial Statements

July 31, 2024

Note 1 - Nature of Operations and Basis of Presentation

Nature of Operations

Mama's Creations, Inc. (together with its subsidiaries, the “Company”), (formerly known as Mama Mancini's Holdings, Inc. and Mascot Properties, Inc.) was organized on July 22, 2009 as a Nevada corporation. The Company has a fiscal year-end of January 31.

Our subsidiary MamaMancini’s Inc. (“MamaMancinis”) is a marketer, manufacturer and distributor of beef and turkey meatballs with sauce, grilled, roasted and breaded chicken, sausage and peppers, and other similar meats and sauces. In addition, the Company continues to diversify its product line by introducing new products such as ready to serve meals, single-serve pasta bowls, bulk deli, and packaged refrigerated protein products. MamaMancini's products feature many all-natural meals that were submitted to the United States Department of Agriculture (the “USDA”) and approved as "all-natural". The USDA defines "all-natural" as a product that contains no artificial ingredients, coloring ingredients or chemical preservatives and is minimally processed.

Our subsidiary T&L Acquisition Corp. is a premier gourmet food manufacturer based in New York. T&L Acquisition Corp. DBA T&L Creative Salads (“T&L”) and Olive Branch (“OB”) offer a full line of foods for retail food chains and club stores, delis, bagel stores, caterers and provision distributors. T&L uses high-quality meats, seafood and vegetables, prepared to meet the standards set forth by the USDA and the Food and Drug Administration ("FDA"). Olive Branch concentrates on selling olives, olive mixes, and savory products to a limited number of large retail customers, primarily in pre-packaged containers.

On June 28, 2022, the Company acquired a 24% minority interest in Chef Inspirational Foods, LLC (“CIF”), a leading developer, innovator, marketer and sales company selling prepared foods, for an investment of $1.2 million. The investment consisted of $500 thousand in cash and $700 thousand in the Company’s common stock. The acquisition of the interest in CIF was accounted for under the equity method of accounting for investments until the Company acquired the remaining interest in CIF. On June 28, 2023, the Company completed the acquisition of the remaining 76% of CIF, in accordance with the terms of the Membership Interest Purchase Agreement dated June 28, 2023 by and among the Company, Siegel Suffolk Family, LLC, and R&I Loeb Family, LLC (the “Sellers”) for approximately $3.7 million, including approximately $1 million in cash at closing and a $2.7 million promissory note (the "CIF Acquisition"). The promissory note requires a principal payment of $1.2 million in cash on the first anniversary of the closing date (which was made during the three months ended July 31, 2024), and a payment of $1.5 million in common stock of the Company on the second anniversary of the closing date.

The following presents the unaudited results of operations for the period February 1, 2023 through June 28, 2023 of CIF (in thousands):


	For the Period February 1, 2023 through June 28, 2023
Revenues	$	13,721
Net income	$	931

Name Change

On July 31, 2023, the Company filed an amendment to the Articles of Incorporation with the Secretary of State of the State of Nevada to change the Company’s name from “MamaMancini’s Holdings, Inc.” to “Mama’s Creations, Inc.” (the “Name Change”). The Name Change, which was approved by the Company’s stockholders at its annual meeting on July 31, 2023, did not alter the voting powers or relative rights of the Company from its origins as a home style, old-world Italian food company to a "one stop shop" including all-natural specialty prepared refrigerated foods for sale in retailers around the country. On July 31, 2023, the Company also amended and restated its Amended and Restated Bylaws, solely to reflect the name change (as amended, the “Second Amended and Restated Bylaws”).

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Note 2 - Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements of the Company and its subsidiaries, which are unaudited, include all normal and recurring adjustments considered necessary to present fairly the Company’s financial position as of July 31, 2024, and the results of its operations and its cash flows for the periods presented. The unaudited Condensed Consolidated Financial Statements herein should be read together with the historical Consolidated Financial Statements of the Company for the years ended January 31, 2024 and 2023 included in our Annual Report on Form 10-K for the year ended January 31, 2024 (the "2024 Form 10-K"). Operating results for the three and six months ended July 31, 2024 are not necessarily indicative of the results that may be expected for the year ending January 31, 2025. Certain amounts in the prior years have been reclassified to conform to the current year presentation.

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances have been eliminated in consolidation.

Use of Estimates

The preparation of Condensed Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Such estimates and assumptions impact, among other items, allowance for credit losses, the fair value of stock-based compensation, inventory reserves, impairment of goodwill and intangible assets, and estimates for unrealized returns, discounts, and other allowances that are netted against revenue.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the Condensed Consolidated Financial Statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.

Risks and Uncertainties

The Company operates in an industry that is subject to intense competition and changes in consumer demand. The Company’s operations are subject to significant risks and uncertainties, including financial and operational risks, including the potential risk of business failure.

The Company has experienced, and in the future expects to continue to experience, variability in sales and earnings. The factors expected to contribute to this variability include, among others, (i) the cyclical nature of the grocery industry, (ii) general economic conditions in the various local markets in which the Company competes, including a potential general downturn in the economy, and (iii) the volatility of prices pertaining to food and beverages in connection with the Company’s distribution of the product. These factors, among others, make it difficult to project the Company’s operating results on a consistent basis.

Segment Reporting

For the three and six months ending July 31, 2024 and July 31, 2023, the Company was managed as a single operating segment. The Chief Executive Officer, who is the Company's Chief Operating Decision Maker ("CODM"), reviews financial information on an aggregate basis for purposes of allocating resources and assessing financial performance, as well as for making strategic operational decisions and managing the organization. As such the Company has one reportable segment. Additionally, all of the Company's assets are maintained in the United States.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.

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The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company generally does not require collateral to support customer receivables. Estimated product returns are immaterial. Management assesses the collectability of outstanding customer invoices and maintains an allowance resulting from the expected non-collection of customer receivables. In estimating this reserve, management considers factors such as historical collection experience, customer creditworthiness, specific customer risk, and current and expected general economic conditions. Customer balances are written off after all collection efforts are exhausted. The reserve for uncollectible accounts was approximately $93 thousand as of July 31, 2024 and January 31, 2024. During the three and six months ended July 31, 2024 the Company did not write off any accounts deemed uncollectible. During the three and six months ended July 31, 2023 the Company wrote off approximately $140 thousand of accounts that were deemed uncollectible.

Inventories

The Company values its inventory at the lower of cost or net realizable value (“NRV”). NRV is defined as estimated selling prices less costs of completion, disposal, and transportation. The cost of inventory is determined on the first-in, first-out basis. The cost of finished goods inventories includes ingredients, direct labor, freight-in for ingredients, and indirect production and overhead costs. The Company monitors its inventory to identify excess or obsolete items on hand. The Company reviews inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on selling prices and indications from customers based upon current price negotiations and purchase orders. In addition, and as necessary, specific reserves for future known or anticipated events may be established. As of July 31, 2024 and January 31, 2024, the reserve for obsolete inventory was approximately $95 thousand.

Inventories by major category are as follows (in thousands):


	July 31, 2024		January 31, 2024
Raw materials and packaging	$	1,376	$	1,159
Work in process	324		237
Finished goods	1,148		1,914
Total	$	2,848	$	3,310

Property, Plant and Equipment

Property, plant, and equipment are recorded at cost net of depreciation. Depreciation expense is computed using straight-line methods over the estimated useful lives.

Asset lives for financial statement reporting of depreciation expense are:


Machinery and equipment			2-7 years
Furniture and fixtures			3-5 years
Leasehold improvements			*

(*)Amortized on a straight-line basis over the shorter of the remaining lease term at the time the asset was placed in service or their estimated useful lives.

Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the consolidated statements of operations.

Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the fair values of the underlying net assets of an acquired business. The Company tests goodwill for impairment on an annual basis during the fourth quarter of its fiscal year, or immediately if conditions indicate that an impairment could exist. The Company evaluates qualitative factors to determine

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if it is more likely than not that the fair value is less than its carrying value and whether it is necessary to perform goodwill impairment testing.

As of July 31, 2024 and January 31, 2024, there were no impairment losses recognized for goodwill.

Other Intangible Assets

Other intangible assets consist of trademarks, trade names and customer relationships. Intangible asset lives for financial statement reporting of amortization are:


Tradenames and trademarks			3 years
Customer relationships			4 – 5 years

Fair Value of Financial Instruments

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments.

Research and Development

Research and development is expensed as incurred. Research and development expenses were $93 thousand and $197 thousand for the three and six months ended July 31, 2024, respectively, compared to $95 thousand and $166 thousand for the three and six months ended July 31, 2023, respectively.

Revenue Recognition

The Company recognizes revenue in accordance with FASB Topic 606, Revenue from Contracts with Customers (Topic 606).

The Company’s sales are primarily generated from the sale of finished products to customers. Revenue is recognized when the performance obligation is satisfied, and the promised goods have been transferred. Control transfers when the product is shipped or delivered based upon applicable shipping terms. For each contract, the Company considers the transfer of product to be the performance obligation. Although some payment terms may be extended, generally the Company’s payment terms are approximately 15- 30 days. Accordingly, there are no significant financing components to consider when determining the transaction price. The Company elected to treat shipping and handling activities as fulfillment activities, and the related costs are recorded as selling expenses in selling, general and administrative expenses on the Consolidated Statements of Operations.

The Company promotes its products with trade incentives and promotions. These programs include discounts, slotting fees, coupons, rebates, in-store display incentives and volume-based incentives. The trade incentives and promotions are recorded as a reduction to the transaction price based on amounts estimated as being due to customers at the end of the period. The Company derives these estimates based on historical experience. The Company does not receive a distinct service in relation to the trade incentives and promotions. The Company’s contracts are all short term in nature; therefore, there are no unsatisfied performance obligations requiring disclosure as of July 31, 2024 and January 31, 2024.

Expenses such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows (in thousands):


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Gross Sales	$	28,704	$	25,415
Less: Slotting Fees, Discounts & Allowances	322		625
Net Sales	$	28,382	$	24,790

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	For the Six Months Ended
	July 31, 2024		July 31, 2023
Gross Sales	$	59,102	$	49,015
Less: Slotting Fees, Discounts & Allowances	882		1,104
Net Sales	$	58,220	$	47,911

Disaggregation of Revenue from Contracts with Customers. The following table disaggregates gross revenue by significant geographic area for the three months ended July 31, 2024 and 2023 (in thousands):


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Northeast	$	8,690	$	9,385
Southeast	8,010		7,192
Midwest	5,768		3,988
West	6,236		4,850
Total gross sales	$	28,704	$	25,415


	For the Six Months Ended
	July 31, 2024		July 31, 2023
Northeast	$	18,257	$	17,951
Southeast	15,707		13,887
Midwest	12,152		8,255
West	12,986		8,922
Total gross sales	$	59,102	$	49,015

Costs of Sales

Costs of sales represents costs directly related to the production and manufacturing of the Company’s products.

Advertising

Costs incurred for advertising for the Company are charged to selling, general and administrative expenses as incurred. Advertising expenses were $404 thousand and $817 thousand for the three and six months ended July 31, 2024, respectively, compared to $190 thousand and $399 thousand for the three and six months ended July 31, 2023, respectively.

Stock-Based Compensation

The Company provides compensation benefits in the form of performance stock awards, restricted stock units, stock options, and warrants. The cost of the stock-based compensation is recorded at fair value on the date of grant and expensed in the condensed consolidated statement of operations over the requisite service period.

The Company has granted performance stock awards ("PSUs") to certain executive officers. Each performance stock award entitles the participant to earn shares of common stock upon the attainment of certain market conditions and certain performance goals over the applicable performance period. The recognition of the compensation expense for the performance stock awards is based upon the probable outcome of the market condition and performance conditions based on the fair value of the award on the date of grant. To determine the value of PSUs with market conditions for stock-based compensation purposes, the Company used a Monte Carlo simulation valuation model. For each path, the PSUs payoff is calculated based on the contractual terms, whereas the fair value of the PSUs is calculated as the average present value of all modeled payoffs. The determination of the grant date fair value of PSUs issued is affected by a number of variables and subjective assumptions, including (i) the fair value of the Company’s common stock at the grant date of $1.17 and $1.40,

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(ii) the expected common stock price volatility over the expected life of the award of 85.7% and 87.0%, (iii) the term of the awards of 5 years and 5 years, (iv) the risk-free interest rate of 3.7% and 3.4%, and (v) the expected dividend yield of 0% and 0%. Forfeitures are recognized when they occur. There were no performance stock units that vested in the three and six months ending July 31, 2024. The Company's performance against the defined goals is re-evaluated on a quarterly basis throughout the performance period and the recognition of the compensation expense is adjusted for subsequent changes in the estimated or actual outcome.

The Company values stock options and warrants using the Black-Scholes option pricing model. Grants of stock-based payment awards issued to non-employees for services rendered have been recorded at the fair value of the stock-based payment, which is the more readily determinable value. The grants are amortized on a straight-line basis over the requisite service period, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service.

Earnings Per Share

Basic net income or loss per share attributable to common stockholders excludes dilution and is computed by dividing net income attributable to common stockholders during the period by the weighted average number of common shares outstanding during the period. Diluted net income or loss per share reflects potential dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period, which is increased by the number of additional common shares that would have been outstanding if the potential common shares had been issued. However, if the effect of any additional securities are anti-dilutive (i.e., resulting in a higher net income per share or lower net loss per share), they are excluded from the dilutive earnings per share computation. The dilutive effect of stock options, warrants, and restricted stock is calculated using the treasury stock method and the dilutive effect of the Series B Preferred stock is calculated using the if-converted method.

The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share (in thousands, except per share data):


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Numerator:
Net income attributable to common stockholders	$	1,148	1,721
Effect of dilutive securities:	—		21

Diluted net income	$	1,148	$	1,742

Denominator:
Weighted average common shares outstanding – basic	37,336		36,855
Dilutive securities (a):
Restricted stock	371		251
Performance stock awards	1,840		—
Options	57		384

Weighted average common shares outstanding and assumed conversion – diluted	39,604		37,490

Basic net income per common share	$	0.03	$	0.05

Diluted net income per common share	$	0.03	$	0.05

(a) – Anti-dilutive securities excluded:	-		-

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	For the Six Months Ended
	July 31, 2024		July 31, 2023
Numerator:
Net income attributable to common stockholders	1,701		3,095
Effect of dilutive securities:	—		49

Diluted net income	$	1,701	$	3,144

Denominator:
Weighted average common shares outstanding – basic	37,298		36,628
Dilutive securities (a):
Restricted stock	343		222
Options	54		345
Performance stock awards	1,840		—

Weighted average common shares outstanding and assumed conversion – diluted	39,535		37,195

Basic net income per common share	$	0.05	$	0.09

Diluted net income per common share	$	0.04	$	0.08

(a) – Anti-dilutive securities excluded:	-		-

Income Taxes

Income taxes are provided in accordance with ASC 740, “Accounting for Income Taxes.” A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense results from the net change during the period of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets are adjusted for the effects of changes in tax laws and rates on the date of enactment. As of July 31, 2024 and January 31, 2024, the Company recognized a deferred tax asset of $390 thousand and $503 thousand, respectively, which is included in other long-term assets on the condensed consolidated balance sheets. The Company regularly evaluates the need for a valuation allowance related to the deferred tax asset.

Recent Accounting Pronouncements

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification and makes targeted improvements to the disclosures for convertible instruments and earnings per share (EPS) guidance. This update is effective for the Company’s fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of this standard did not have a significant impact on the Company’s condensed consolidated financial statements.

In March 2023, the FASB issued ASU No. 2023-02, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investment Tax Credit Structures Using the Proportional Amortization Method." The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal

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years. The adoption of this standard did not have a significant impact on the Company’s condensed consolidated financial statements.

In October 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-06, "Disclosure Improvements: Amendments - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." The FASB issued the standard to introduce changes to U.S. GAAP that originate in either SEC Regulation S-X or S-K, which are rules about the form and content of financial reports. The provisions of the standard are contingent when the SEC removes the related disclosure provisions from Regulation S-X and S-K. The Company does not expect the provisions of the standard to have a material impact on the Company's financial statements and related disclosures.

In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendment is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption ASU No. 2023-07 will have to the financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in the ASU address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendment is effective retrospectively for fiscal years beginning after December 15, 2024, on a prospective basis, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of ASU No. 2023-09 will have to the financial statements and related disclosures.

Management does not believe that any recently issued but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying condensed consolidated financial statements.

Note 3 – Property Plant and Equipment:

Property plant and equipment on July 31, 2024 and January 31, 2024 are as follows (in thousands):


	July 31, 2024		January 31, 2024
Machinery and Equipment	$	6,489	$	4,437
Furniture and Fixtures	242		252
Leasehold Improvements	4,291		2,956
	11,022		7,645
Less: Accumulated Depreciation	3,750		3,209
Total	$	7,272	$	4,436

Depreciation expense was approximately $314 thousand and $606 thousand for the three and six months ended July 31, 2024, respectively, compared to approximately $263 thousand and $512 thousand for the three and six months ended July 31, 2023, respectively.

Note 4 – Intangible assets, net

Intangible assets, net consisted of the following at July 31, 2024 (dollars in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life (years)
Customer relationships	$	6,418	$	(2,218)	$	4,200	2.80
Tradename and trademarks	79		(68)		11		0.41
	$	6,497	$	(2,286)	$	4,211

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Intangibles, net consisted of the following at January 31, 2024 (dollars in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life (years)
Customer relationships	$	6,418	$	(1,463)	$	4,955	3.29
Tradename and trademarks	79		(55)		24		0.91
	$	6,497	$	(1,518)	$	4,979

Amortization expense was approximately $388 thousand and $768 thousand for the three and six months ended July 31, 2024, respectively, compared to approximately $202 thousand and $304 thousand for the three and six months ended July 31, 2023, respectively.

We expect the estimated aggregate amortization expense for each of the four succeeding fiscal years to be as follows (in thousands):


2025 (Remaining)	$	771
2026	1,513
2027	1,465
2028	462
Total	$	4,211

Note 5 – Related Party Transactions

Promissory Notes – Related Parties

Upon consummation of the acquisition of T&L in December 2021, the Company executed a $3 million promissory note with the sellers. The promissory note requires annual principal payments of $750 thousand, payable on each anniversary of the closing, together with accrued interest at a rate of three and one-half percent (3.5%) per annum. As of July 31, 2024 and January 31, 2024, the outstanding balance under the note was $1.5 million, respectively, of which $750 thousand is recorded as Promissory notes – related parties and $750 thousand is recorded as Promissory notes – related parties, net of current in the Company’s Condensed Consolidated Balance Sheets. Interest expense related to this note was approximately $13 thousand and $26 thousand for the three and six months ended July 31, 2024, respectively, compared to approximately $20 thousand and $39 thousand for the three and six months ended July 31, 2023, respectively. As of July 31, 2024 and January 31, 2024, accrued interest was approximately $31 thousand and $5 thousand, respectively.

Lease – Related Party

The Company leases a fully contained facility in Farmingdale, NY from 148 Allen Blvd LLC for production and distribution of T&L Creative Salads and Olive Branch products. 148 Allen Blvd LLC is owned by Anthony Morello, Jr., President of T&L, and various individuals related to Mr. Morello. This lease term is through November 30, 2031 with the option to extend the lease for two additional ten-year terms with base rent of approximately $20 thousand per month through December 31, 2026, increasing after that date to approximately $24 thousand per month through the end of the initial lease term. The exercise of optional renewal is uncertain and therefore excluded from the calculation of the right of use asset. Rent expense and other ancillary charges pursuant to the lease for the three and six months ended July 31, 2024 were approximately $81 thousand and $159 thousand, respectively, compared to $106 thousand and $171 thousand for the three and six months ending July 31, 2023 , respectively.

Chef Inspirational Foods, LLC – Related Party

The Company owned a 24% minority interest in CIF until June 28, 2023, when the Company acquired the remaining interest (refer to Note 1). For the period May 1, 2023 to July 31, 2023 and the period from February 1, 2023 to June 28, 2023, the Company recorded sales of approximately $4.3 million and $10.9 million with CIF, respectively. For the period May 1, 2023 to July 31, 2023 and the period from February 1, 2023 to June 28, 2023, the Company recorded commission expense with CIF of approximately $29 thousand and $175 thousand, respectively.

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Note 6 – Loan and Security Agreements

M&T Bank

The Company has a working capital line of credit with M&T Bank for a maximum principal amount of $5.5 million (the "Credit Agreement"). On July 31, 2024, the Company extended the maturity date of the working capital line from October 31, 2025 to November 30, 2027. The principal outstanding bears interest at a variable rate per annum based on the Company’s Senior Funded Debt/EBITDA Ratio (as defined in the Credit Agreement), established with respect to the Borrower as of the date of any advance under the Credit Agreement as follows: if the Senior Funded Debt/EBITDA ratio is: (i) greater than 2.25, 3.25 percentage point(s) above the applicable one-day (i.e. overnight) SOFR (as defined); (ii) greater than 1.50 but less than 2.25, 2.75 percentage points above the one-day SOFR; (iii) less than or equal to 1.50, 2.25 percentage points above the one-day SOFR. The facility is supported by a first priority security interest in all of the Company’s business assets and is further subject to various affirmative and negative financial covenants. The Company was in compliance with the covenants as of July 31, 2024 and January 31, 2024. Advances under the line of credit are limited to eighty percent (80%) of eligible accounts receivable (which is subject to an agreed limitation and is further subject to certain asset concentration provisions) and fifty percent (50%) of eligible inventory (which is subject to an agreed dollar limitation). All advances under the line of credit are due upon maturity. There was no outstanding balance on the line of credit as of July 31, 2024 and January 31, 2024, respectively. During the three and six months ended July 31, 2024 the Company incurred no interest , compared to approximately $26 thousand and $47 thousand for the three and six months ended July 31, 2023, respectively.

On December 29, 2021, the Company entered into a loan with M&T Bank for the original principal amount of $7.5 million payable in equal monthly principal installments over a 60-month amortization period (the “Acquisition Note”). The Maturity Date of the Acquisition Note is January 17, 2027. The Acquisition Note was amended effective December 4, 2023 to change the rate at which interest accrues and amended on July 31, 2024 to amend certain covenants. Effective December 4, 2023 the interest rate was amended to be based on the Senior Funded Debt/EBITDA Ratio (as defined in the Acquisition Note). If the Senior Funded Debt/EBITDA ratio is: (i) greater than 2.25, 3.5 percentage point(s) above the applicable Variable Loan Rate; (ii) greater than 1.50 but less than or equal to 2.25, 3.0 percentage points of the applicable Variable Loan Rate; or (iii) less than or equal to 1.50, 2.5 percentage points above the applicable Variable Loan Rate; provided that in all events the rate shall not be less than the recited percentage point margin over 0%. As of July 31, 2024, the outstanding balance and unamortized discount of the Acquisition Note was approximately $3.8 million and $28 thousand, respectively. As of January 31, 2024, the outstanding balance and unamortized discount of the Acquisition Note was approximately $4.6 million and $38 thousand, respectively. During the three and six months ended July 31, 2024 the Company incurred interest of approximately $80 thousand and $166 thousand respectively, compared to approximately $118 thousand and $237 thousand for the three and six months ended July 31, 2023, respectively.

Note 7 – Concentrations

Revenues

For the three months ended July 31, 2024, the Company’s revenue was concentrated in two customers that accounted for approximately 38% and 11% of gross revenue, respectively. For the six months ended July 31, 2024, the Company’s revenue was concentrated in one customer that accounted for approximately 40% of gross revenue.

For the three months ended July 31, 2023, the Company’s revenue was concentrated in three customers that accounted for approximately 18%, 17%, and 10% of gross revenue, respectively. For the six months ended July 31, 2023, the Company’s revenue was concentrated in three customers that accounted for approximately 22%, 13%, and 11% of gross revenue respectively.

Receivables

As of July 31, 2024, four customers represented approximately 31%, 13%, 11%, and 11% of the total gross outstanding receivables, respectively. As of January 31, 2024, four customers represented approximately 20%, 15%, 13%, and 10% of total gross outstanding receivables, respectively.

Note 8 – Stockholders’ Equity

Preferred Stock and Series A Preferred Stock

The Company is authorized to issue 20 million shares of Preferred Stock, $0.00001 par value per share. The Company has designated 120 thousand shares of Preferred Stock as Series A Convertible Preferred stock. As of July 31, 2024 and January 31, 2024, no shares of Series A Convertible Preferred Stock are outstanding.

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Series B Preferred Stock

The Company has designated 200 thousand shares of preferred stock, Series B Preferred Stock.

The holders of the Series B Preferred Stock shall be entitled to receive, upon liquidation, dissolution or winding up of the Company, the original issue price, plus any dividends declared but unpaid or the amount of cash, securities or other property to which such holder would be entitled to receive with respect to such shares of Series B Preferred Stock if such shares had been converted to common stock immediately prior to such liquidation.

Holders of the Series B Preferred Stock were entitled to receive cumulative cash dividends at an annual rate of eight percent (8%). Holders of the Series B Preferred Stock had no voting rights. Each share of Series B Preferred Stock was convertible, at the option of the holder, into shares of common stock at a rate of 1 share of Series B Preferred Stock into 15 shares of common stock. The Company was able to force conversion at $2.00 per share of Common Stock at any time after 6 months after issue if the Common Stock had a closing price of $2.00 or higher in any 20 consecutive trading days. After 18 months, the Company could force holders to convert at a 20% discount to the most recent 20-day average closing price per share. The Company also had the right to cause a conversion following a Fundamental Change.

On June 22, 2023, all the holders of the Series B Preferred Stock converted the shares of Series B Preferred Stock into 819,000 shares of Common Stock of the Company. As of July 31, 2024 and January 31, 2024, no shares of Series B Preferred Stock remain outstanding.

The Company paid dividends of approximately $21 thousand and $49 thousand for the three and six months ended July 31, 2023, respectively. Such dividends related to the Company's then outstanding Series B Preferred Stock.

Restricted Stock Units

The fair value of restricted stock units is determined based on the closing price of the Company's Common Stock on the grant date. Restricted Stock Units generally vest on a graded basis over three years to four years of service. The terms of the RSUs include vesting provisions based solely on continued service.

The following is a summary of the Company’s restricted stock units activity:


	Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested restricted stock units - February 1, 2024	493,078	$	1.91
Granted	56,207	$	6.85
Vested	(74,267)	$	4.02
Forfeited	-	$	-
Outstanding – July 31, 2024	475,018	$	2.16

During the three and six months ended July 31, 2024, the Company recognized stock-based compensation expense related to restricted stock units of an aggregate of approximately $197 thousand and $311 thousand, respectively, compared to $63 thousand and $31 thousand for the three and six months ended July 31, 2023, respectively. The restricted stock expense was recorded to selling, general and administrative expenses or cost of goods sold depending on the nature of the employee's expense on the Condensed Consolidated Statement of Operations. As of July 31, 2024, there was unrecognized stock-based compensation of approximately $822 thousand related to future vesting of restricted stock units.

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Options

The following is a summary of the Company’s option activity:


	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding – February 1, 2024	117,500	$	1.48	8.36	$	333
Granted	-	$	-
Exercised	(30,000)	$	1.48
Expired/forfeited	(15,000)	$	1.48
Outstanding – July 31, 2024	72,500	$	1.48	7.87	$	445
Exercisable – July 31, 2024	7,500	$	1.48	7.87	$	46

During the six months ended July 31, 2024, there were 30,000 options exercised at a weighted average exercise price of $1.48 per share resulting in the issuance of 30 thousand shares of common stock. The Company received approximately $44 thousand for the exercise of these options.

For the three and six months ended July 31, 2024, the Company recognized stock-based compensation expense related to options of an aggregate of approximately $8 thousand and $7 thousand, respectively, compared to $18 thousand and $41 thousand for the three and six months ended July 31, 2023. The stock-based compensation expense related to the options is included in selling, general and administrative expenses on the accompanying condensed consolidated statements of operations. During the six months ended July 31, 2024, certain employees and contractors resigned from the Company, which resulted in the reversal of approximately $11 thousand of previously recognized stock-based compensation expense. At July 31, 2024, there was unrecognized stock-based compensation expense related to the issuance of options of approximately $29 thousand.

Equity issuances

On May 15, 2024, the Company entered into a Settlement Agreement with directors Alfred D’Agostino, Steven Burns, Dean Janeway and Thomas Toto (each, a “Director”) relating to certain options purported to have been granted by the Company in 2018 and 2019 (the "Purported Options") under prior leadership that exceeded the availability under the Company’s equity plan at the time of the purported grants.

In exchange for a release of any and all claims or rights related to the Purported Options, the Company agreed to issue each Director a payment of approximately $113 thousand and approximately 17 thousand shares of common stock. In connection with the Settlement Agreement and the issuance of the shares, the Company incurred a one-time charge of approximately $900 thousand within selling, general and administrative expense in the three months ended April 30, 2024.

During the three and six months ended July 31, 2024 the Company issued 3,007 shares valued at approximately $20 thousand to certain employees as compensation.

Note 9 - Commitments and Contingencies

Litigation, Claims and Assessments

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm its business.

Licensing and Royalty Agreements

On March 1, 2010, the Company was assigned a Development and License agreement, dated January 1, 2009, with Daniel Dougherty (the “License Agreement”). Under the terms of the License Agreement, the royalty rate payable by the Company is 6% of net sales up to $500 thousand of net sales (as defined in the agreement) for each year under the License

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Agreement; 4% of net sales from $500 thousand up to $2.5 million of net sales for each year under the License Agreement; 2% of net sales from $2.5 million up to $20 million of net sales for each year under the License Agreement; and 1% of net sales in excess of $20 million of net sales for each year under the License Agreement.

In order to continue exclusivity, the Company shall pay a minimum royalty of $125,000 each year.

The Company incurred approximately $123 thousand and $305 thousand of royalty expenses for the three and six months ended July 31, 2024, respectively, compared to $129 thousand and $318 thousand for the three months ended July 31, 2023, respectively. Royalty expenses are included in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations.

Note 10 –Leases

The Company accounts for leases in accordance with ASC 842 “Leases” (“ASC 842”). We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration.

In April 2024, the Company's lease of additional warehouse and office space in Farmingdale, New York became effective. The lease agreement has a five year term with monthly rent of approximately $16.7 thousand for the first year, increasing to approximately $17.2 thousand for the second year, increasing to approximately $17.7 thousand for the third year, increasing to approximately $18.2 thousand for the fourth year and increasing to approximately $18.8 thousand for the fifth year. As a result of this lease the Company recognized a (right-of-use) (ROU) asset and a ROU liability of approximately $873 thousand.

During the six months ended July 31, 2024, the Company amended its lease for 25 Branca Road, East Rutherford, NJ. The amended lease has a termination date of August 31, 2024, which was subsequently extended, see Note 12. As the lease is now short term in nature the Company wrote off approximately $897 thousand of the ROU asset and ROU liability in the three months ended April 30, 2024.

We have operating leases for offices and other facilities used for our operations. We also have finance leases consisting primarily of machinery and equipment. Our leases have remaining lease terms of approximately 0.33 years to 7.6 years.

Supplemental cash flow and other information related to leases was as follows (in thousands):


	July 31, 2024		July 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	267	$	135
Financing cash flows from finance leases	196		93

The following table shows the weighted average lease term and weighted average discount rate for our ROU lease assets:


	July 31, 2024		January 31, 2024
Weighted average remaining lease term (in years)
Operating leases	6.15		6.57
Finance leases	4.43		4.49

Weighted average discount rate:
Operating leases	5.47	%	4.85	%
Finance Leases	7.19	%	6.74	%

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Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):


For the fiscal years ended	Finance Leases		Operating Leases		Total Maturities of Lease Liabilities
2025 remaining	$	233	$	280	$	513
2026	384		566		950
2027	336		467		803
2028	328		500		828
2029	232		507		739
Thereafter	150		839		989
Total undiscounted future lease payments	1,663		3,159		4,822
Less: imputed interest	(261)		(453)		(714)
Total present value of future lease liabilities	$	1,402	$	2,706	$	4,108

Note 11 - Income Tax Provision

The Company’s effective tax rate for the three and six months ending July 31, 2024 and July 31, 2023 is 25.9% and 25.4%, respectively. Differences from the statutory rate primarily relate to state taxes.

As of July 31, 2024, the net deferred tax asset of approximately $390 thousand.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future generation for taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. There was no valuation allowance on the Company's deferred tax assets as of July 31, 2024 or January 31, 2024.

The Company evaluated the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 prescribes a comprehensive model for how a company should recognize, present, and disclose uncertain positions that the Company has taken or expects to take in its tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryforward or amount of tax refundable is reduced) for unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740.

Note 12 - Subsequent Event

On August 21, 2024, the Company amended its lease at 25 Branca Road. The amended lease has monthly rent of approximately $36 thousand until February 28, 2026 with a renewal option to extend the lease until August 31, 2029. The monthly rent during the renewal option ranges from approximately $38 thousand to approximately $42 thousand.

F-23

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

THE FOLLOWING DISCUSSION OF OUR PLAN OF OPERATION AND RESULTS OF OPERATIONS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND RELATED NOTES TO THE FINANCIAL STATEMENTS INCLUDED ELSEWHERE IN THIS REPORT. THIS DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS THAT RELATE TO FUTURE EVENTS OR OUR FUTURE FINANCIAL PERFORMANCE. THESE STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE OUR ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THOSE LISTED UNDER “FORWARD-LOOKING STATEMENTS” AND “RISK FACTORS” DETAILED IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K, OTHER PRIOR COMPANY FILINGS AND THOSE INCLUDED ELSEWHERE IN THIS REPORT.

Overview

Mama’s Creations, Inc. (“Mama’s,” “Mama’s Creations” or the “Company”) is a leading marketer and manufacturer of fresh deli prepared foods, found in over 8,000 grocery, mass, club and convenience stores nationally. The Company’s broad product portfolio, born from MamaMancini’s rich history in Italian foods, now consists of a variety of high-quality, fresh, clean and easy to prepare foods to address the needs of both our consumers and retailers. Our vision is to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse family of brands to offer a wide array of prepared foods to meet the changing demands of the modern consumer.

Results of Operations for the Three Months Ended July 31, 2024 and 2023

The following table sets forth the summary of the condensed consolidated statements of operations for the three months ended July 31, 2024 and 2023 (in thousands):


	For the Three Months Ended
	July 31, 2024		July 31, 2023

Net sales	$	28,382	$	24,790
Costs of sales	$	21,503	$	17,284
Gross Profit	$	6,879	$	7,506
Operating Expenses	$	5,267	$	5,231
Other Expenses	$	(63)	$	(181)
Income Tax Expense	$	(401)	$	(430)
Income from equity method investment in Chef Inspirational Foods, LLC	$	—	$	78
Net Income	$	1,148	$	1,742

For the three months ended July 31, 2024 and 2023, the Company reported net income of approximately $1.1 million and $1.7 million respectively. The change in net income between the three months ended July 31, 2024 and 2023 is due to the changes in net sales, costs of sales and operating expenses described below.

Net sales: Net Sales increased by approximately 14.5% to $28.4 million during the three months ended July 31, 2024, from $24.8 million during the three months ended July 31, 2023. The increase in sales is due to volume gains, successful pricing actions, and the acquisition of CIF in June 2023. Volume gains were driven by increased demand at existing customers, successful trade and marketing promotions, same-customer cross-selling of new items, and new customer door expansion.

Costs of sales: Costs of sales increased by approximately 24% to $21.5 million, or 76% of Net Sales, during the three months ended July 31, 2024, from $17.3 million, or 70% of Net Sales, during the three months ended July 31, 2023. The increase in costs of sales as a percentage of Net Sales is due to increases in commodity costs, in particular the price of chicken, partially offset by improvements in procurement, manufacturing and labor efficiencies.

Gross Profit Margin: The gross profit margin was 24% and 30% for the three months ended July 31, 2024 and 2023, respectively. The decrease in gross profit margin between the three months ended July 31, 2024 and 2023 is due to

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increased commodity costs, in particular the price of chicken, which were partially offset by customer price increases, improvements in procurement, and manufacturing efficiencies.

Operating Expenses: Operating expenses were relatively flat in aggregate during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023. The change in total operating expenses is primarily attributable to the following:

•Payroll and Related Expenses inclusive of stock-based compensation decreased by approximately $364 thousand mainly related to variable compensation arrangements;

•Insurance expense decreased by approximately $213 thousand mainly related to updated terms of coverage;

•Professional fees and director fees decreased by approximately $73 thousand mainly related to private offerings done in the prior year;

•Freight related expenses decreased by approximately $112 thousand mainly related to a greater focus on full truckload sales versus less than full truckload sales as well as stronger supplier management of carriers.

•Advertising expenses increased by approximately $214 thousand due to new strategies and enhanced focus to drive increased velocities of our existing products;

•Amortization of intangible assets increased by approximately $211 thousand due to the acquisition of CIF, which was completed in June 2023;

•Other operating expenses increased by approximately $174 thousand due to additional travel and office expenses; and

•Commission expenses increased by approximately $203 thousand due to increased sales; and

•Other Expenses: Other expenses decreased by approximately $118 thousand to $63 thousand for the three months ended July 31, 2024, as compared to $181 thousand for the three months ended July 31, 2023. The decrease is primarily due to interest income of approximately $63 thousand and a decrease of interest expense of approximately $127 thousand, due to a lower debt balance.

Results of Operations for the Six Months Ended July 31, 2024 and 2023

The following table sets forth the summary of the condensed consolidated statements of operations for the six months ended July 31, 2024 as compared to the six months ended July 31, 2023 (in thousands):


	For the Six Months Ended
	July 31, 2024		July 31, 2023

Net Sales	$	58,220	$	47,911
Costs of Sales	$	43,878	$	34,034
Gross Profit	$	14,342	$	13,877
Operating Expenses	$	11,957	$	9,659
Other Expenses	$	(104)	$	(343)
Income Tax Expense	$	(580)	$	(954)
Income from equity method investment in Chef Inspirational Foods, LLC	$	—	$	223
Net Income	$	1,701	$	3,144

For the six months ended July 31, 2024 and 2023, the Company reported net income of approximately $1.7 million and $3.1 million, respectively. The change in net income between the six months ended July 31, 2024 and 2023 is due to the changes in net sales, costs of sales and operating expenses described below.

Net sales: Net Sales increased by approximately 21.5% to $58.2 million during the six months ended July 31, 2024, from $47.9 million during the six months ended July 31, 2023. The increase in sales is due to volume gains, successful pricing actions, and the acquisition of CIF in June 2023. Volume gains were driven by increased demand at existing customers, successful trade and marketing promotions, same-customer cross-selling of new items, and new customer door expansion.

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Costs of sales: Costs of sales increased by approximately 29% to $43.9 million, or 75% of Net Sales, during the six months ended July 31, 2024, from $34.0 million, or 71% of Net Sales, during the six months ended July 31, 2023. The increase in costs of sales as a percentage of Net Sales is due to increases in commodity costs, in particular the price of chicken, partially offset by improvements in procurement, manufacturing and labor efficiencies.

Gross Profit Margin: The gross profit margin was 25% and 29% for the three months ended July 31, 2024 and 2023, respectively. The decrease in gross profit margin between the six months ended July 31, 2024 and 2023 is due to increased commodity costs, partially offset by customer price increases and manufacturing efficiencies.

Operating Expenses: Operating expenses increased by 24% during the six months ended July 31, 2024, as compared to the six months ended July 31, 2023. The $2.3 million increase in total operating expenses is primarily attributable to the following:

•One time legal settlement expense of approximately $900 thousand, due to the Settlement Agreement with directors;

•Advertising expenses increased by approximately $419 thousand due to new strategies and enhanced focus to drive increased velocities of our existing products;

•Amortization of intangible assets increased by approximately $478 thousand due to the acquisition of CIF, which was completed in June 2023;

•Commission expenses increased by approximately $219 thousand due to increased sales;

•Payroll and Related Expenses inclusive of stock-based compensation decreased by approximately $93 thousand, mainly related to variable compensation arrangements; and

•Insurance expense decreased by approximately $166 thousand mainly related to updated terms of our coverage; and

•Other Expenses: Other expenses decreased by approximately $239 thousand to $104 thousand for the six months ended July 31, 2024, as compared to $343 thousand for the six months ended July 31, 2023. The decrease is primarily due to interest income in the current year of approximately $155 thousand, and a decrease of interest expense of approximately $110 thousand, due to a lower debt balance.

Liquidity and Capital Resources

We finance our operations with internally generated funds, supplemented by credit arrangements with third parties and, potentially, capital market financing.

Working Capital

The following table summarizes total current assets, liabilities and working capital at July 31, 2024 compared to January 31, 2024 (in thousands):


	July 31, 2024		January 31, 2024		Change
Current Assets	$	19,706	$	23,566	$	(3,860)
Current Liabilities	14,353		16,690		(2,337)
Working Capital	$	5,353	$	6,876	$	(1,523)

As of July 31, 2024, we had working capital of approximately $5.4 million as compared to working capital of approximately $6.9 million as of January 31, 2024. The decrease in working capital is primarily attributable to a decrease in cash and cash equivalents of approximately $3.7 million, a decrease in inventory of approximately $0.5 million a decrease in accounts payable and accrued expenses of approximately $2.6 million, and an increase in promissory notes - related parties of $0.3 million, partially offset by an increase in accounts receivable of approximately $0.3 million.

Long-Term Requirements

As of July 31, 2024, we have $0 outstanding under our Credit Agreement and approximately $3.8 million outstanding under our Term Loan Agreement with M&T Bank. The Term Loan Agreement has a maturity date of January 17, 2027. In addition, we have payments of $750 thousand (plus accrued interest) due on December 29, 2024 and 2025 pursuant to the promissory notes issued to the sellers of T&L and Olive Branch, as discussed in Item 1, Note 6. In addition, we have a payment of $1.5 million in common stock due to the sellers of CIF on June 28, 2025. We also have operating leases for

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offices and other facilities used for our operations and finance leases comprised primarily of machinery and equipment, as discussed in Item 1. Note 10.

Cash Flows

The following table summarizes the key components of our cash flows for the six months ended July 31, 2024 and 2023 (in thousands).


	For the Six Months Ended July 31,
	2024		2023

Net Cash Provided by Operating Activities	$	1,234	$	3,358
Net Cash (Used in) Investing Activities	(2,740)		(899)
Net Cash (Used in) Financing Activities	(2,128)		(1,280)
Net (Decrease) Increase in cash	(3,634)		1,179
Cash, beginning of period	11,022		4,378
Cash, end of period	$	7,388	$	5,557

Operating activities

Net cash provided by operating activities for the six months ended July 31, 2024 was approximately $1.2 million, which consisted of (i) net income of approximately $1.7 million, (ii) non-cash expenses of approximately $2.3 million, and (iii) a decrease in operating assets and liabilities of approximately $2.8 million.

Net cash provided by operating activities for the six months ended July 31, 2023 was approximately $3.4 million, which consisted of (i) net income of approximately $3.1 million, (ii) non-cash expenses of approximately $1.6 million, and (iii) a decrease in operating assets and liabilities of approximately $1.5 million.

Investing activities

Net cash used in investing activities for the six months ended July 31, 2024 was approximately $2.7 million and consisted of purchases of fixed assets.

Net cash used in investing activities for the six months ended July 31, 2023 was approximately $0.9 million and consisted of approximately $0.3 million purchases of fixed assets and $0.6 million for the purchase of the remaining interest in CIF.

Financing activities

Net cash used in financing activities for the six months ended July 31, 2024 was approximately $2.1 million and consisted of approximately $1.2 million of payments of related party promissory notes, approximately $0.8 million of payments on the Term Loan and approximately $0.2 million payments on finance leases.

Net cash used in financing activities for the six months ended July 31, 2023 was approximately $1.3 million and consisted of approximately $0.8 million of payments on the Term Loan, approximately $0.4 million of payments on the line of credit, and approximately $0.1 million payments on finance leases.

Liquidity and capital requirements outlook

Although the expected revenue growth and control of expenses leads management to believe that it is probable that the Company’s cash resources will be sufficient to meet its cash requirements through at least the next twelve months, based on current and projected levels of operations, the Company may require additional funding to finance growth or achieve its strategic objectives. If such financing is required, there can be no assurance that financing will be available in amounts or on terms acceptable to the Company, if at all. In the event funding is not available on reasonable terms, the Company might be required to change its growth strategy and/or seek funding on an alternative basis, but there is no guarantee it will be able to do so.

Recent Accounting Pronouncements

See Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements for accounting pronouncements issued but not yet adopted that may impact the Company’s consolidated financial position, earnings, cash flows or disclosures.

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Critical Accounting Estimates and Policies

As of the filing date of this report, there were no significant changes in our critical accounting estimates from those discussed in our 2024 Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934), as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports that we file under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, who serve as our principal executive officer and our principal financial officer, respectively, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well-designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Due to the inherent limitations of control systems, not all misstatements may be detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. Controls and procedures can only provide reasonable, not absolute, assurance that the above objectives have been met.

As of July 31, 2024, we evaluated, with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, at the reasonable assurance level, in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15, that occurred during our last quarter to which this Quarterly Report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be involved in litigation incidental to the conduct of our business. We are currently not involved in any litigation that we believe could have a material effect on our financial condition or results of operations.

Item 1A. Risk Factors.

There have been no material changes to the risk factors previously reported in our 2024 Form 10-K. See the risk factors set forth in our 2024 Annual Report on Form 10-K under the caption "Item 1A - Risk Factors."

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Except as described in our Current Report on Form 8-K filed on May 17, 2024, during the three and six months ended July 31, 2024, the Company had no sales of unregistered securities.

During the three and six months ended July 31, 2024, the Company did not repurchase any Company equity securities.

Item 3. Defaults upon Senior Securities.

There has been no material default in payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Rule 10b5-1 Trading Plans

On June 24, 2024, Adam Michaels, Chief Executive Officer, entered into a Rule 10b5-1 trading arrangement that is intended to qualify as an “eligible sell-to-cover transaction” (as described in Rule 10b5-1(c)(1)(ii)(D)(3) under the Exchange Act). The sell-to-cover arrangement applies to restricted stock units (RSUs) that vest based on the passage of time. The arrangement provides for the automatic sale of shares of the Company’s common stock for each settlement date of a covered RSU in an amount necessary to satisfy the applicable withholding obligations. The number of shares that will be sold under this arrangement is not currently determinable as the number will vary based on the extent to which vesting conditions are satisfied and the market price of our common stock at the time of settlement. The duration of this arrangement is until the final vesting date of the applicable RSUs, or earlier termination of employment.

Except as described above during the three months ended July 31, 2024, no director or executive officer adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

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Item 6. Exhibits.


Exhibit No.						Description

3.1						Articles of Incorporation of Mama’s Creations, Inc. (incorporated by reference from Exhibit 3.1 to the Company’s Registration Statement on Form S-1 filed on May 24, 2011).
3.2						Certificate of Amendment to Certificate of Incorporation of Mama’s Creations, Inc. (incorporated by reference from Exhibit 3.4 to the Company’s Current Report on Form 8-K filed on March 8, 2013).
3.3						Certificate of Amendment to Articles of Incorporation of Mama’s Creations, Inc. (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on August 1, 2023).
3.4						Second Amended and Restated Series A Convertible Preferred Stock Certificate of Designation (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 10, 2015).
3.5						Series B Preferred Stock Certificate of Designation (incorporated by reference from Exhibit 3.4 to the Company’s Registration Statement on Form S-3 filed on June 2, 2023).
3.6						Second Amended and Restated Bylaws of Mama’s Creations, Inc. (incorporated by reference from Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on August 1, 2023).
10.1						Amendment to M&T Credit Agreement, dated as of July 31, 2024 (incorporated from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 5, 2024)
31.1						Certification of Principal Executive Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of 2002*
31.2						Certification of Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of 2002*
32.1						Certification of Principal Executive Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
32.2						Certification of Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
101.INS						Inline XBRL Instance Document**
101.SCH						Inline XBRL Taxonomy Extension Schema Document**
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document**
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document**
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document**
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Filed herewith.

**Furnished herewith.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	MAMA’S CREATIONS, INC.

Date: September 10, 2024	By:	/s/ Adam L. Michaels
	Name:	Adam L. Michaels
	Title:	Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ Anthony Gruber
	Name:	Anthony Gruber
	Title:	Chief Financial Officer (Principal Financial Officer)

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Adam L. Michaels, certify that:

1.I have reviewed this Form 10-Q of Mama’s Creations, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: September 10, 2024	By:	/s/ Adam L. Michaels
		Adam L. Michaels
		Principal Executive Officer
		Mama’s Creations, Inc.

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Anthony Gruber, certify that:

1.I have reviewed this Form 10-Q of Mama’s Creations, Inc.;

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: September 10, 2024	By:	/s/ Anthony Gruber
		Anthony Gruber
		Principal Financial Officer
		Mama’s Creations, Inc.

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of Mama’s Creations, Inc. (the “Company”), on Form 10-Q for the period ended July 31, 2024, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Adam L. Michaels, Principal Executive Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)Such Quarterly Report on Form 10-Q for the period ended July 31, 2024, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in such Quarterly Report on Form 10-Q for the period ended July 31, 2024, fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: September 10, 2024	By:	/s/ Adam L. Michaels
		Adam L. Michaels
		Principal Executive Officer
		Mama’s Creations, Inc.

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of Mama’s Creations, Inc. (the “Company”), on Form 10-Q for the period ended July 31, 2024, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Anthony Gruber, Principal Executive Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)Such Quarterly Report on Form 10-Q for the period ended July 31, 2024, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


Date: September 10, 2024	By:	/s/ Anthony Gruber
		Anthony Gruber
		Principal Financial Officer
		Mama’s Creations, Inc.

Cover - shares	6 Months Ended
Cover - shares	Jul. 31, 2024	Sep. 09, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2024
Document Transition Report	false
Entity File Number	001-40597
Entity Registrant Name	Mama’s Creations, Inc.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	27-0607116
Entity Address, Address Line One	25 Branca Road
Entity Address, City or Town	East Rutherford
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07073
City Area Code	201
Local Phone Number	531-1212
Title of 12(b) Security	Common Stock, par value $0.00001
Trading Symbol	MAMA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,577,493
Entity Central Index Key	0001520358
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--01-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2024	Jan. 31, 2024
Current Assets:
Cash and cash equivalents	$ 7,368	$ 11,022
Accounts receivable, net	8,126	7,859
Inventories, net	2,848	3,310
Prepaid expenses and other current assets	1,364	1,375
Total current assets	19,706	23,566
Property, plant, and equipment, net	7,272	4,436
Intangible assets, net	4,211	4,979
Goodwill	8,633	8,633
Operating lease right of use assets, net	2,643	2,889
Deferred tax asset	390	503
Deposits	95	95
Total Assets	42,950	45,101
Current Liabilities:
Accounts payable and accrued expenses	9,793	12,425
Term loan, net of unamortized debt discount of $28 and $38, respectively	1,524	1,514
Operating lease liabilities	428	434
Finance leases payable	358	367
Promissory notes – related parties	2,250	1,950
Total current liabilities	14,353	16,690
Line of credit	0	0
Operating lease liabilities – net of current	2,278	2,515
Finance leases payable – net of current	1,044	1,062
Promissory note – related party, net of current	750	2,250
Term loan – net of current	2,228	3,003
Total long-term liabilities	6,300	8,830
Total Liabilities	20,653	25,520
Commitments and contingencies (Notes 9 and 10)
Stockholders’ Equity:
Common stock, $0.00001 par value; 250,000,000 shares authorized; 37,663,041 and 37,488,239 shares issued as of July 31, 2024 and January 31, 2024, respectively, 37,433,041 and 37,258,239 shares outstanding as of July 31, 2024 and January 31, 2024, respectively	0	0
Additional paid in capital	24,293	23,278
Accumulated deficit	(1,846)	(3,547)
Less: Treasury stock, 230,000 shares at cost	(150)	(150)
Total Stockholders’ Equity	22,297	19,581
Total Liabilities and Stockholders’ Equity	42,950	45,101
Series A Preferred Stock
Stockholders’ Equity:
Preferred stock value	0	0
Series B Preferred Stock
Stockholders’ Equity:
Preferred stock value	0	0
Preferred Stock
Stockholders’ Equity:
Preferred stock value	$ 0	$ 0

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2024	Jan. 31, 2024
Unamortized debt discount	$ 28	$ 38
Preferred stock par value (in dollars per share)	$ 0.00001
Preferred stock authorized (in shares)	20,000,000
Common stock par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock authorized (in shares)	250,000,000	250,000,000
Common stock issued (in shares)	37,663,041	37,488,239
Common stock outstanding (in shares)	37,433,041	37,258,239
Treasury stock (in shares)	230,000	230,000
Series A Preferred Stock
Preferred stock par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock authorized (in shares)	120,000	120,000
Preferred stock issued (in shares)	23,400	23,400
Preferred stock outstanding (in shares)	0	0
Series B Preferred Stock
Preferred stock par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock authorized (in shares)	200,000	200,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Preferred Stock
Preferred stock par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock authorized (in shares)	19,680,000	19,680,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Income Statement [Abstract]
Net sales	$ 28,382	$ 24,790	$ 58,220	$ 47,911
Costs of sales	21,503	17,284	43,878	34,034
Gross profit	6,879	7,506	14,342	13,877
Operating expenses:
Research and development	93	95	197	166
Selling, general and administrative expenses	5,174	5,136	11,760	9,493
Total operating expenses	5,267	5,231	11,957	9,659
Income from operations	1,612	2,275	2,385	4,218
Other income (expenses)
Interest expense	(122)	(182)	(249)	(359)
Interest income	63	0	155	0
Amortization of debt discount	(4)	(6)	(10)	(11)
Other income	0	7	0	27
Total other expenses	(63)	(181)	(104)	(343)
Net income before income tax provision and income from equity method investment	1,549	2,094	2,281	3,875
Income from equity method investment	0	78	0	223
Income tax expense	(401)	(430)	(580)	(954)
Net income	1,148	1,742	1,701	3,144
Less: series B preferred dividends	0	(21)	0	(49)
Net Income available to common stockholders	$ 1,148	$ 1,721	$ 1,701	$ 3,095
Net income per common share
basic (in dollars per share)	$ 0.03	$ 0.05	$ 0.05	$ 0.09
diluted (in dollars per share)	$ 0.03	$ 0.05	$ 0.04	$ 0.08
Weighted average common shares outstanding
basic (in shares)	37,336	36,855	37,298	36,628
diluted (in shares)	39,604	37,490	39,535	37,195

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Series A Preferred Stock	Series B Preferred Stock	Preferred Stock Series A Preferred Stock	Preferred Stock Series B Preferred Stock	Common Stock	Treasury Stock	Additional Paid In Capital	Accumulated Deficit
Beginning balance, preferred stock (in shares) at Jan. 31, 2023				0	55,000
Beginning balance at Jan. 31, 2023	$ 12,515			$ 0	$ 0	$ 0	$ (150)	$ 22,724	$ (10,059)
Beginning balance, common stock (in shares) at Jan. 31, 2023						36,318,000
Beginning balance, treasury stock (in shares) at Jan. 31, 2023							(230,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation (in shares)						20,000
Stock based compensation	160							160
Stock issued for the exercise of options and warrants (in shares)						187,000
Stock issued for the exercise of options and warrants	28							28
Issuance of shares for director settlement	0
Conversion of Series B preferred stock (in shares)					55,000	819,000
Series B Preferred dividend	(49)		$ (49)
Net income	3,144								3,144
Ending balance, preferred stock (in shares) at Jul. 31, 2023				0	0
Ending balance at Jul. 31, 2023	15,798			$ 0	$ 0	$ 0	$ (150)	22,912	(6,964)
Ending balance, common stock (in shares) at Jul. 31, 2023						37,344,000
Ending balance, treasury stock (in shares) at Jul. 31, 2023							(230,000)
Beginning balance, preferred stock (in shares) at Apr. 30, 2023				0	55,000
Beginning balance at Apr. 30, 2023	13,963			$ 0	$ 0	$ 0	$ (150)	22,798	(8,685)
Beginning balance, common stock (in shares) at Apr. 30, 2023						36,485,000
Beginning balance, treasury stock (in shares) at Apr. 30, 2023							(230,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation (in shares)						20,000
Stock based compensation	105							105
Stock issued for the exercise of options and warrants (in shares)						20,000
Stock issued for the exercise of options and warrants	9							9
Conversion of Series B preferred stock (in shares)					55,000	819,000
Series B Preferred dividend	(21)		$ (21)
Net income	1,742								1,742
Ending balance, preferred stock (in shares) at Jul. 31, 2023				0	0
Ending balance at Jul. 31, 2023	15,798			$ 0	$ 0	$ 0	$ (150)	22,912	(6,964)
Ending balance, common stock (in shares) at Jul. 31, 2023						37,344,000
Ending balance, treasury stock (in shares) at Jul. 31, 2023							(230,000)
Beginning balance, preferred stock (in shares) at Jan. 31, 2024		0	0	0	0
Beginning balance at Jan. 31, 2024	$ 19,581			$ 0	$ 0	$ 0	$ (150)	23,278	(3,547)
Beginning balance, common stock (in shares) at Jan. 31, 2024	37,258,239					37,488,000
Beginning balance, treasury stock (in shares) at Jan. 31, 2024	(230,000)						(230,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation (in shares)						77,000
Stock based compensation	$ 521							521
Stock issued for the exercise of options (in shares)	30,000					30,000
Stock issued for the exercise of options	$ 44							44
Issuance of shares for director settlement (in shares)						68,000
Issuance of shares for director settlement	450							450
Net income	1,701								1,701
Ending balance, preferred stock (in shares) at Jul. 31, 2024		0	0	0	0
Ending balance at Jul. 31, 2024	$ 22,297			$ 0	$ 0	$ 0	$ (150)	24,293	(1,846)
Ending balance, common stock (in shares) at Jul. 31, 2024	37,433,041					37,663,000
Ending balance, treasury stock (in shares) at Jul. 31, 2024	(230,000)						(230,000)
Beginning balance, preferred stock (in shares) at Apr. 30, 2024				0	0
Beginning balance at Apr. 30, 2024	$ 20,346			$ 0	$ 0	$ 0	$ (150)	23,490	(2,994)
Beginning balance, common stock (in shares) at Apr. 30, 2024						37,488,000
Beginning balance, treasury stock (in shares) at Apr. 30, 2024							(230,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation (in shares)						77,000
Stock based compensation	316							316
Stock issued for the exercise of options and warrants (in shares)						30,000
Stock issued for the exercise of options and warrants	37							37
Issuance of shares for director settlement (in shares)						68,000
Issuance of shares for director settlement	450							450
Net income	1,148								1,148
Ending balance, preferred stock (in shares) at Jul. 31, 2024		0	0	0	0
Ending balance at Jul. 31, 2024	$ 22,297			$ 0	$ 0	$ 0	$ (150)	$ 24,293	$ (1,846)
Ending balance, common stock (in shares) at Jul. 31, 2024	37,433,041					37,663,000
Ending balance, treasury stock (in shares) at Jul. 31, 2024	(230,000)						(230,000)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,701	$ 3,144
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	606	512
Amortization of debt discount	10	11
Amortization of right of use assets	270	112
Amortization of intangibles	768	304
Stock-based compensation	521	110
Allowance for obsolete inventory	0	93
Change in deferred tax asset	113	649
Income from equity method investment	0	(223)
Changes in operating assets and liabilities:
Allowance for doubtful accounts	0	140
Accounts receivable	(267)	1,127
Inventories	462	234
Prepaid expenses and other current assets	(522)	347
Security deposits	0	(18)
Accounts payable and accrued expenses	(2,161)	(3,049)
Operating lease liability	(267)	(135)
Net Cash Provided by Operating Activities	1,234	3,358
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for fixed assets	(2,740)	(253)
Cash paid for investment in Chef Inspirational Foods, LLC, net	0	(646)
Net Cash (Used in) Investing Activities	(2,740)	(899)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of term loan	(776)	(776)
Repayment of line of credit, net	0	(390)
Repayment of related party note	(1,200)	0
Repayment of finance lease obligations	(196)	(93)
Payment of Series B Preferred dividends	0	(49)
Proceeds from exercise of stock options	44	28
Net Cash (Used in) Financing Activities	(2,128)	(1,280)
Net (Decrease) Increase in Cash	(3,634)	1,179
Cash and cash equivalents at beginning of period	11,022	4,378
Cash and cash equivalents at end of period	7,388	5,557
SUPPLEMENTARY CASH FLOW INFORMATION:
Income taxes	871	113
Interest	223	313
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of series B preferred stock to common stock	0	0
Finance lease asset additions	169	903
Right of use asset recognized	873	0
Write-off of right of use asset	897	0
Related party debt incurred for purchase of Chef Inspirational Foods, LLC	0	2,700
Settlement of liability in common stock	0	50
Issuance of stock for director settlement	450	0
Receipt of fixed assets for deposits which were previously placed	$ 533	$ 0

Nature of Operations and Basis of Presentation

6 Months Ended

Jul. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

Nature of Operations

The following presents the unaudited results of operations for the period February 1, 2023 through June 28, 2023 of CIF (in thousands):


	For the Period February 1, 2023 through June 28, 2023
Revenues	$	13,721
Net income	$	931

Name Change

Summary of Significant Accounting Policies

6 Months Ended

Jul. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances have been eliminated in consolidation.

Use of Estimates

Risks and Uncertainties

Segment Reporting

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.

Accounts Receivable and Allowance for Credit Losses

Inventories

Inventories by major category are as follows (in thousands):


	July 31, 2024		January 31, 2024
Raw materials and packaging	$	1,376	$	1,159
Work in process	324		237
Finished goods	1,148		1,914
Total	$	2,848	$	3,310

Property, Plant and Equipment

Property, plant, and equipment are recorded at cost net of depreciation. Depreciation expense is computed using straight-line methods over the estimated useful lives.

Asset lives for financial statement reporting of depreciation expense are:


Machinery and equipment			2-7 years
Furniture and fixtures			3-5 years
Leasehold improvements			*

(*)Amortized on a straight-line basis over the shorter of the remaining lease term at the time the asset was placed in service or their estimated useful lives.

Goodwill and Other Intangible Assets

Goodwill

if it is more likely than not that the fair value is less than its carrying value and whether it is necessary to perform goodwill impairment testing.

As of July 31, 2024 and January 31, 2024, there were no impairment losses recognized for goodwill.

Other Intangible Assets

Other intangible assets consist of trademarks, trade names and customer relationships. Intangible asset lives for financial statement reporting of amortization are:


Tradenames and trademarks			3 years
Customer relationships			4 – 5 years

Fair Value of Financial Instruments

Research and Development

Revenue Recognition

The Company recognizes revenue in accordance with FASB Topic 606, Revenue from Contracts with Customers (Topic 606).

Expenses such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows (in thousands):


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Gross Sales	$	28,704	$	25,415
Less: Slotting Fees, Discounts & Allowances	322		625
Net Sales	$	28,382	$	24,790


	For the Six Months Ended
	July 31, 2024		July 31, 2023
Gross Sales	$	59,102	$	49,015
Less: Slotting Fees, Discounts & Allowances	882		1,104
Net Sales	$	58,220	$	47,911


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Northeast	$	8,690	$	9,385
Southeast	8,010		7,192
Midwest	5,768		3,988
West	6,236		4,850
Total gross sales	$	28,704	$	25,415


	For the Six Months Ended
	July 31, 2024		July 31, 2023
Northeast	$	18,257	$	17,951
Southeast	15,707		13,887
Midwest	12,152		8,255
West	12,986		8,922
Total gross sales	$	59,102	$	49,015

Costs of Sales

Costs of sales represents costs directly related to the production and manufacturing of the Company’s products.

Advertising

Stock-Based Compensation

Earnings Per Share


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Numerator:
Net income attributable to common stockholders	$	1,148	1,721
Effect of dilutive securities:	—		21

Diluted net income	$	1,148	$	1,742

Denominator:
Weighted average common shares outstanding – basic	37,336		36,855
Dilutive securities (a):
Restricted stock	371		251
Performance stock awards	1,840		—
Options	57		384

Weighted average common shares outstanding and assumed conversion – diluted	39,604		37,490

Basic net income per common share	$	0.03	$	0.05

Diluted net income per common share	$	0.03	$	0.05

(a) – Anti-dilutive securities excluded:	-		-


	For the Six Months Ended
	July 31, 2024		July 31, 2023
Numerator:
Net income attributable to common stockholders	1,701		3,095
Effect of dilutive securities:	—		49

Diluted net income	$	1,701	$	3,144

Denominator:
Weighted average common shares outstanding – basic	37,298		36,628
Dilutive securities (a):
Restricted stock	343		222
Options	54		345
Performance stock awards	1,840		—

Weighted average common shares outstanding and assumed conversion – diluted	39,535		37,195

Basic net income per common share	$	0.05	$	0.09

Diluted net income per common share	$	0.04	$	0.08

(a) – Anti-dilutive securities excluded:	-		-

Income Taxes

Recent Accounting Pronouncements

years. The adoption of this standard did not have a significant impact on the Company’s condensed consolidated financial statements.

Property Plant and Equipment

6 Months Ended

Jul. 31, 2024

Property, Plant and Equipment [Abstract]

Property Plant and Equipment

Property Plant and Equipment:

Property plant and equipment on July 31, 2024 and January 31, 2024 are as follows (in thousands):


	July 31, 2024		January 31, 2024
Machinery and Equipment	$	6,489	$	4,437
Furniture and Fixtures	242		252
Leasehold Improvements	4,291		2,956
	11,022		7,645
Less: Accumulated Depreciation	3,750		3,209
Total	$	7,272	$	4,436

Intangible assets, net

6 Months Ended

Jul. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets, net

Intangible assets, net consisted of the following at July 31, 2024 (dollars in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life (years)
Customer relationships	$	6,418	$	(2,218)	$	4,200	2.80
Tradename and trademarks	79		(68)		11		0.41
	$	6,497	$	(2,286)	$	4,211

Intangibles, net consisted of the following at January 31, 2024 (dollars in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life (years)
Customer relationships	$	6,418	$	(1,463)	$	4,955	3.29
Tradename and trademarks	79		(55)		24		0.91
	$	6,497	$	(1,518)	$	4,979

We expect the estimated aggregate amortization expense for each of the four succeeding fiscal years to be as follows (in thousands):


2025 (Remaining)	$	771
2026	1,513
2027	1,465
2028	462
Total	$	4,211

Related Party Transactions	6 Months Ended
Related Party Transactions	Jul. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Promissory Notes – Related Parties Upon consummation of the acquisition of T&L in December 2021, the Company executed a $3 million promissory note with the sellers. The promissory note requires annual principal payments of $750 thousand, payable on each anniversary of the closing, together with accrued interest at a rate of three and one-half percent (3.5%) per annum. As of July 31, 2024 and January 31, 2024, the outstanding balance under the note was $1.5 million, respectively, of which $750 thousand is recorded as Promissory notes – related parties and $750 thousand is recorded as Promissory notes – related parties, net of current in the Company’s Condensed Consolidated Balance Sheets. Interest expense related to this note was approximately $13 thousand and $26 thousand for the three and six months ended July 31, 2024, respectively, compared to approximately $20 thousand and $39 thousand for the three and six months ended July 31, 2023, respectively. As of July 31, 2024 and January 31, 2024, accrued interest was approximately $31 thousand and $5 thousand, respectively. Lease – Related Party The Company leases a fully contained facility in Farmingdale, NY from 148 Allen Blvd LLC for production and distribution of T&L Creative Salads and Olive Branch products. 148 Allen Blvd LLC is owned by Anthony Morello, Jr., President of T&L, and various individuals related to Mr. Morello. This lease term is through November 30, 2031 with the option to extend the lease for two additional ten-year terms with base rent of approximately $20 thousand per month through December 31, 2026, increasing after that date to approximately $24 thousand per month through the end of the initial lease term. The exercise of optional renewal is uncertain and therefore excluded from the calculation of the right of use asset. Rent expense and other ancillary charges pursuant to the lease for the three and six months ended July 31, 2024 were approximately $81 thousand and $159 thousand, respectively, compared to $106 thousand and $171 thousand for the three and six months ending July 31, 2023 , respectively. Chef Inspirational Foods, LLC – Related Party The Company owned a 24% minority interest in CIF until June 28, 2023, when the Company acquired the remaining interest (refer to Note 1). For the period May 1, 2023 to July 31, 2023 and the period from February 1, 2023 to June 28, 2023, the Company recorded sales of approximately $4.3 million and $10.9 million with CIF, respectively. For the period May 1, 2023 to July 31, 2023 and the period from February 1, 2023 to June 28, 2023, the Company recorded commission expense with CIF of approximately $29 thousand and $175 thousand, respectively.

Loan and Security Agreements	6 Months Ended
Loan and Security Agreements	Jul. 31, 2024
Loan And Security Agreements
Loan and Security Agreements	Loan and Security Agreements M&T Bank The Company has a working capital line of credit with M&T Bank for a maximum principal amount of $5.5 million (the "Credit Agreement"). On July 31, 2024, the Company extended the maturity date of the working capital line from October 31, 2025 to November 30, 2027. The principal outstanding bears interest at a variable rate per annum based on the Company’s Senior Funded Debt/EBITDA Ratio (as defined in the Credit Agreement), established with respect to the Borrower as of the date of any advance under the Credit Agreement as follows: if the Senior Funded Debt/EBITDA ratio is: (i) greater than 2.25, 3.25 percentage point(s) above the applicable one-day (i.e. overnight) SOFR (as defined); (ii) greater than 1.50 but less than 2.25, 2.75 percentage points above the one-day SOFR; (iii) less than or equal to 1.50, 2.25 percentage points above the one-day SOFR. The facility is supported by a first priority security interest in all of the Company’s business assets and is further subject to various affirmative and negative financial covenants. The Company was in compliance with the covenants as of July 31, 2024 and January 31, 2024. Advances under the line of credit are limited to eighty percent (80%) of eligible accounts receivable (which is subject to an agreed limitation and is further subject to certain asset concentration provisions) and fifty percent (50%) of eligible inventory (which is subject to an agreed dollar limitation). All advances under the line of credit are due upon maturity. There was no outstanding balance on the line of credit as of July 31, 2024 and January 31, 2024, respectively. During the three and six months ended July 31, 2024 the Company incurred no interest , compared to approximately $26 thousand and $47 thousand for the three and six months ended July 31, 2023, respectively. On December 29, 2021, the Company entered into a loan with M&T Bank for the original principal amount of $7.5 million payable in equal monthly principal installments over a 60-month amortization period (the “Acquisition Note”). The Maturity Date of the Acquisition Note is January 17, 2027. The Acquisition Note was amended effective December 4, 2023 to change the rate at which interest accrues and amended on July 31, 2024 to amend certain covenants. Effective December 4, 2023 the interest rate was amended to be based on the Senior Funded Debt/EBITDA Ratio (as defined in the Acquisition Note). If the Senior Funded Debt/EBITDA ratio is: (i) greater than 2.25, 3.5 percentage point(s) above the applicable Variable Loan Rate; (ii) greater than 1.50 but less than or equal to 2.25, 3.0 percentage points of the applicable Variable Loan Rate; or (iii) less than or equal to 1.50, 2.5 percentage points above the applicable Variable Loan Rate; provided that in all events the rate shall not be less than the recited percentage point margin over 0%. As of July 31, 2024, the outstanding balance and unamortized discount of the Acquisition Note was approximately $3.8 million and $28 thousand, respectively. As of January 31, 2024, the outstanding balance and unamortized discount of the Acquisition Note was approximately $4.6 million and $38 thousand, respectively. During the three and six months ended July 31, 2024 the Company incurred interest of approximately $80 thousand and $166 thousand respectively, compared to approximately $118 thousand and $237 thousand for the three and six months ended July 31, 2023, respectively.

Concentrations	6 Months Ended
Concentrations	Jul. 31, 2024
Risks and Uncertainties [Abstract]
Concentrations	Concentrations Revenues For the three months ended July 31, 2024, the Company’s revenue was concentrated in two customers that accounted for approximately 38% and 11% of gross revenue, respectively. For the six months ended July 31, 2024, the Company’s revenue was concentrated in one customer that accounted for approximately 40% of gross revenue. For the three months ended July 31, 2023, the Company’s revenue was concentrated in three customers that accounted for approximately 18%, 17%, and 10% of gross revenue, respectively. For the six months ended July 31, 2023, the Company’s revenue was concentrated in three customers that accounted for approximately 22%, 13%, and 11% of gross revenue respectively. Receivables As of July 31, 2024, four customers represented approximately 31%, 13%, 11%, and 11% of the total gross outstanding receivables, respectively. As of January 31, 2024, four customers represented approximately 20%, 15%, 13%, and 10% of total gross outstanding receivables, respectively.

Stockholders’ Equity

6 Months Ended

Jul. 31, 2024

Equity [Abstract]

Stockholders’ Equity

Preferred Stock and Series A Preferred Stock

Series B Preferred Stock

The Company has designated 200 thousand shares of preferred stock, Series B Preferred Stock.

Restricted Stock Units

The following is a summary of the Company’s restricted stock units activity:


	Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested restricted stock units - February 1, 2024	493,078	$	1.91
Granted	56,207	$	6.85
Vested	(74,267)	$	4.02
Forfeited	-	$	-
Outstanding – July 31, 2024	475,018	$	2.16

Options

The following is a summary of the Company’s option activity:


	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding – February 1, 2024	117,500	$	1.48	8.36	$	333
Granted	-	$	-
Exercised	(30,000)	$	1.48
Expired/forfeited	(15,000)	$	1.48
Outstanding – July 31, 2024	72,500	$	1.48	7.87	$	445
Exercisable – July 31, 2024	7,500	$	1.48	7.87	$	46

Equity issuances

During the three and six months ended July 31, 2024 the Company issued 3,007 shares valued at approximately $20 thousand to certain employees as compensation.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jul. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation, Claims and Assessments From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm its business. Licensing and Royalty Agreements On March 1, 2010, the Company was assigned a Development and License agreement, dated January 1, 2009, with Daniel Dougherty (the “License Agreement”). Under the terms of the License Agreement, the royalty rate payable by the Company is 6% of net sales up to $500 thousand of net sales (as defined in the agreement) for each year under the License Agreement; 4% of net sales from $500 thousand up to $2.5 million of net sales for each year under the License Agreement; 2% of net sales from $2.5 million up to $20 million of net sales for each year under the License Agreement; and 1% of net sales in excess of $20 million of net sales for each year under the License Agreement. In order to continue exclusivity, the Company shall pay a minimum royalty of $125,000 each year. The Company incurred approximately $123 thousand and $305 thousand of royalty expenses for the three and six months ended July 31, 2024, respectively, compared to $129 thousand and $318 thousand for the three months ended July 31, 2023, respectively. Royalty expenses are included in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations.

Leases

6 Months Ended

Jul. 31, 2024

Leases [Abstract]

Leases

Supplemental cash flow and other information related to leases was as follows (in thousands):


	July 31, 2024		July 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	267	$	135
Financing cash flows from finance leases	196		93

The following table shows the weighted average lease term and weighted average discount rate for our ROU lease assets:


	July 31, 2024		January 31, 2024
Weighted average remaining lease term (in years)
Operating leases	6.15		6.57
Finance leases	4.43		4.49

Weighted average discount rate:
Operating leases	5.47	%	4.85	%
Finance Leases	7.19	%	6.74	%

Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):


For the fiscal years ended	Finance Leases		Operating Leases		Total Maturities of Lease Liabilities
2025 remaining	$	233	$	280	$	513
2026	384		566		950
2027	336		467		803
2028	328		500		828
2029	232		507		739
Thereafter	150		839		989
Total undiscounted future lease payments	1,663		3,159		4,822
Less: imputed interest	(261)		(453)		(714)
Total present value of future lease liabilities	$	1,402	$	2,706	$	4,108

Leases

Supplemental cash flow and other information related to leases was as follows (in thousands):


	July 31, 2024		July 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	267	$	135
Financing cash flows from finance leases	196		93

The following table shows the weighted average lease term and weighted average discount rate for our ROU lease assets:


	July 31, 2024		January 31, 2024
Weighted average remaining lease term (in years)
Operating leases	6.15		6.57
Finance leases	4.43		4.49

Weighted average discount rate:
Operating leases	5.47	%	4.85	%
Finance Leases	7.19	%	6.74	%

Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):


For the fiscal years ended	Finance Leases		Operating Leases		Total Maturities of Lease Liabilities
2025 remaining	$	233	$	280	$	513
2026	384		566		950
2027	336		467		803
2028	328		500		828
2029	232		507		739
Thereafter	150		839		989
Total undiscounted future lease payments	1,663		3,159		4,822
Less: imputed interest	(261)		(453)		(714)
Total present value of future lease liabilities	$	1,402	$	2,706	$	4,108

Income Tax Provision	6 Months Ended
Income Tax Provision	Jul. 31, 2024
Income Tax Disclosure [Abstract]
Income Tax Provision	Income Tax Provision The Company’s effective tax rate for the three and six months ending July 31, 2024 and July 31, 2023 is 25.9% and 25.4%, respectively. Differences from the statutory rate primarily relate to state taxes. As of July 31, 2024, the net deferred tax asset of approximately $390 thousand. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future generation for taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. There was no valuation allowance on the Company's deferred tax assets as of July 31, 2024 or January 31, 2024. The Company evaluated the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 prescribes a comprehensive model for how a company should recognize, present, and disclose uncertain positions that the Company has taken or expects to take in its tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryforward or amount of tax refundable is reduced) for unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740.

Subsequent Event	6 Months Ended
Subsequent Event	Jul. 31, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn August 21, 2024, the Company amended its lease at 25 Branca Road. The amended lease has monthly rent of approximately $36 thousand until February 28, 2026 with a renewal option to extend the lease until August 31, 2029. The monthly rent during the renewal option ranges from approximately $38 thousand to approximately $42 thousand.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Pay vs Performance Disclosure
Net income	$ 1,148	$ 1,742	$ 1,701	$ 3,144

Insider Trading Arrangements	3 Months Ended	6 Months Ended
Insider Trading Arrangements	Jul. 31, 2024	Jul. 31, 2024
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Adam Michaels [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 24, 2024, Adam Michaels, Chief Executive Officer, entered into a Rule 10b5-1 trading arrangement that is intended to qualify as an “eligible sell-to-cover transaction” (as described in Rule 10b5-1(c)(1)(ii)(D)(3) under the Exchange Act). The sell-to-cover arrangement applies to restricted stock units (RSUs) that vest based on the passage of time. The arrangement provides for the automatic sale of shares of the Company’s common stock for each settlement date of a covered RSU in an amount necessary to satisfy the applicable withholding obligations. The number of shares that will be sold under this arrangement is not currently determinable as the number will vary based on the extent to which vesting conditions are satisfied and the market price of our common stock at the time of settlement. The duration of this arrangement is until the final vesting date of the applicable RSUs, or earlier termination of employment.
Name	Adam Michaels
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 24, 2024

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jul. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances have been eliminated in consolidation.

Use of Estimates

Risks and Uncertainties

Segment Reporting

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.

Accounts Receivable and Allowance for Credit Losses

Inventories

Property, Plant and Equipment

Property, plant, and equipment are recorded at cost net of depreciation. Depreciation expense is computed using straight-line methods over the estimated useful lives.

Asset lives for financial statement reporting of depreciation expense are:


Machinery and equipment			2-7 years
Furniture and fixtures			3-5 years
Leasehold improvements			*

(*)Amortized on a straight-line basis over the shorter of the remaining lease term at the time the asset was placed in service or their estimated useful lives.

Goodwill and Other Intangible Assets

Goodwill

if it is more likely than not that the fair value is less than its carrying value and whether it is necessary to perform goodwill impairment testing.

Fair Value of Financial Instruments

Research and Development

Research and development is expensed as incurred.

Revenue Recognition

The Company recognizes revenue in accordance with FASB Topic 606, Revenue from Contracts with Customers (Topic 606).

Costs of Sales

Costs of sales represents costs directly related to the production and manufacturing of the Company’s products.

Advertising

Costs incurred for advertising for the Company are charged to selling, general and administrative expenses as incurred.

Stock-Based Compensation

Earnings Per Share

Income Taxes

Recent Accounting Pronouncements

years. The adoption of this standard did not have a significant impact on the Company’s condensed consolidated financial statements.

Nature of Operations and Basis of Presentation (Tables)

6 Months Ended

Jul. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Results of Operations

The following presents the unaudited results of operations for the period February 1, 2023 through June 28, 2023 of CIF (in thousands):


	For the Period February 1, 2023 through June 28, 2023
Revenues	$	13,721
Net income	$	931

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jul. 31, 2024

Accounting Policies [Abstract]

Schedule of Inventories

Inventories by major category are as follows (in thousands):


	July 31, 2024		January 31, 2024
Raw materials and packaging	$	1,376	$	1,159
Work in process	324		237
Finished goods	1,148		1,914
Total	$	2,848	$	3,310

Schedule of Asset Lives

Asset lives for financial statement reporting of depreciation expense are:


Machinery and equipment			2-7 years
Furniture and fixtures			3-5 years
Leasehold improvements			*

(*)Amortized on a straight-line basis over the shorter of the remaining lease term at the time the asset was placed in service or their estimated useful lives.

Schedule of Other Intangible Assets

Other intangible assets consist of trademarks, trade names and customer relationships. Intangible asset lives for financial statement reporting of amortization are:


Tradenames and trademarks			3 years
Customer relationships			4 – 5 years

Schedule of Expenses of Slotting Fees, Sales Discounts, and Allowances

Expenses such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows (in thousands):


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Gross Sales	$	28,704	$	25,415
Less: Slotting Fees, Discounts & Allowances	322		625
Net Sales	$	28,382	$	24,790


	For the Six Months Ended
	July 31, 2024		July 31, 2023
Gross Sales	$	59,102	$	49,015
Less: Slotting Fees, Discounts & Allowances	882		1,104
Net Sales	$	58,220	$	47,911

Schedule of Disaggregates Gross Revenue by Significant Geographic Area

The following table disaggregates gross revenue by significant geographic area for the three months ended July 31, 2024 and 2023 (in thousands):


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Northeast	$	8,690	$	9,385
Southeast	8,010		7,192
Midwest	5,768		3,988
West	6,236		4,850
Total gross sales	$	28,704	$	25,415


	For the Six Months Ended
	July 31, 2024		July 31, 2023
Northeast	$	18,257	$	17,951
Southeast	15,707		13,887
Midwest	12,152		8,255
West	12,986		8,922
Total gross sales	$	59,102	$	49,015

Reconciliation of Basic and Diluted Earnings Per Share to Net Income


	For the Three Months Ended
	July 31, 2024		July 31, 2023
Numerator:
Net income attributable to common stockholders	$	1,148	1,721
Effect of dilutive securities:	—		21

Diluted net income	$	1,148	$	1,742

Denominator:
Weighted average common shares outstanding – basic	37,336		36,855
Dilutive securities (a):
Restricted stock	371		251
Performance stock awards	1,840		—
Options	57		384

Weighted average common shares outstanding and assumed conversion – diluted	39,604		37,490

Basic net income per common share	$	0.03	$	0.05

Diluted net income per common share	$	0.03	$	0.05

(a) – Anti-dilutive securities excluded:	-		-


	For the Six Months Ended
	July 31, 2024		July 31, 2023
Numerator:
Net income attributable to common stockholders	1,701		3,095
Effect of dilutive securities:	—		49

Diluted net income	$	1,701	$	3,144

Denominator:
Weighted average common shares outstanding – basic	37,298		36,628
Dilutive securities (a):
Restricted stock	343		222
Options	54		345
Performance stock awards	1,840		—

Weighted average common shares outstanding and assumed conversion – diluted	39,535		37,195

Basic net income per common share	$	0.05	$	0.09

Diluted net income per common share	$	0.04	$	0.08

(a) – Anti-dilutive securities excluded:	-		-

Property Plant and Equipment (Tables)

6 Months Ended

Jul. 31, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property Plant and Equipment

Property plant and equipment on July 31, 2024 and January 31, 2024 are as follows (in thousands):


	July 31, 2024		January 31, 2024
Machinery and Equipment	$	6,489	$	4,437
Furniture and Fixtures	242		252
Leasehold Improvements	4,291		2,956
	11,022		7,645
Less: Accumulated Depreciation	3,750		3,209
Total	$	7,272	$	4,436

Intangible assets, net (Tables)

6 Months Ended

Jul. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following at July 31, 2024 (dollars in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life (years)
Customer relationships	$	6,418	$	(2,218)	$	4,200	2.80
Tradename and trademarks	79		(68)		11		0.41
	$	6,497	$	(2,286)	$	4,211

Intangibles, net consisted of the following at January 31, 2024 (dollars in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life (years)
Customer relationships	$	6,418	$	(1,463)	$	4,955	3.29
Tradename and trademarks	79		(55)		24		0.91
	$	6,497	$	(1,518)	$	4,979

Schedule of Estimated Aggregate Amortization Expense

We expect the estimated aggregate amortization expense for each of the four succeeding fiscal years to be as follows (in thousands):


2025 (Remaining)	$	771
2026	1,513
2027	1,465
2028	462
Total	$	4,211

Stockholders’ Equity (Tables)

6 Months Ended

Jul. 31, 2024

Equity [Abstract]

Summary of Restricted Stock Units Activity

The following is a summary of the Company’s restricted stock units activity:


	Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested restricted stock units - February 1, 2024	493,078	$	1.91
Granted	56,207	$	6.85
Vested	(74,267)	$	4.02
Forfeited	-	$	-
Outstanding – July 31, 2024	475,018	$	2.16

Summary of Option Activity

The following is a summary of the Company’s option activity:


	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding – February 1, 2024	117,500	$	1.48	8.36	$	333
Granted	-	$	-
Exercised	(30,000)	$	1.48
Expired/forfeited	(15,000)	$	1.48
Outstanding – July 31, 2024	72,500	$	1.48	7.87	$	445
Exercisable – July 31, 2024	7,500	$	1.48	7.87	$	46

Leases (Tables)

6 Months Ended

Jul. 31, 2024

Leases [Abstract]

Schedule of Supplemental Cash Flow and Other Information Related to Leases

Supplemental cash flow and other information related to leases was as follows (in thousands):


	July 31, 2024		July 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	267	$	135
Financing cash flows from finance leases	196		93

The following table shows the weighted average lease term and weighted average discount rate for our ROU lease assets:


	July 31, 2024		January 31, 2024
Weighted average remaining lease term (in years)
Operating leases	6.15		6.57
Finance leases	4.43		4.49

Weighted average discount rate:
Operating leases	5.47	%	4.85	%
Finance Leases	7.19	%	6.74	%

Schedule of Future Minimum Payments Required Under Maturities of Operating Lease Liabilities

Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):


For the fiscal years ended	Finance Leases		Operating Leases		Total Maturities of Lease Liabilities
2025 remaining	$	233	$	280	$	513
2026	384		566		950
2027	336		467		803
2028	328		500		828
2029	232		507		739
Thereafter	150		839		989
Total undiscounted future lease payments	1,663		3,159		4,822
Less: imputed interest	(261)		(453)		(714)
Total present value of future lease liabilities	$	1,402	$	2,706	$	4,108

Schedule of Future Minimum Payments Required Under Maturities of Finance Lease Liabilities

Maturities of lease liabilities for each of the succeeding fiscal years are as follows (in thousands):


For the fiscal years ended	Finance Leases		Operating Leases		Total Maturities of Lease Liabilities
2025 remaining	$	233	$	280	$	513
2026	384		566		950
2027	336		467		803
2028	328		500		828
2029	232		507		739
Thereafter	150		839		989
Total undiscounted future lease payments	1,663		3,159		4,822
Less: imputed interest	(261)		(453)		(714)
Total present value of future lease liabilities	$	1,402	$	2,706	$	4,108

Nature of Operations and Basis of Presentation - Narrative (Details) - CIF - USD ($) $ in Thousands				3 Months Ended
	Jun. 28, 2025	Jun. 28, 2023	Jun. 28, 2022	Jul. 31, 2024
Business Acquisition [Line Items]
Ownership interest acquired			24.00%
Investment			$ 1,200
Payments to acquire businesses, gross		$ 1,000	500	$ 1,200
Common stock consideration			$ 700
Remaining ownership interest acquired		76.00%
Purchase price		$ 3,700
Promissory note consideration		$ 2,700
Forecast
Business Acquisition [Line Items]
Common stock consideration	$ 1,500

Nature of Operations and Basis of Presentation - Schedule of Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jun. 28, 2023	Jul. 31, 2024	Jul. 31, 2023
Business Acquisition [Line Items]
Revenues	$ 28,382	$ 24,790		$ 58,220	$ 47,911
Net income	$ 1,148	$ 1,742		$ 1,701	$ 3,144
CIF
Business Acquisition [Line Items]
Revenues			$ 13,721
Net income			$ 931

Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2024 USD ($) Segment $ / shares shares	Jul. 31, 2023 USD ($) Segment	Jul. 31, 2024 USD ($) Segment $ / shares shares	Jul. 31, 2023 USD ($) Segment	Jan. 31, 2024 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of operating segments \| Segment	1	1	1	1
Number of reportable segments \| Segment			1
Reserve for uncollectable accounts	$ 93		$ 93		$ 93
Uncollectible accounts written off	0	$ 140	0	$ 140
Reserve for obsolete inventory	95		95		95
Goodwill impairment losses			0		0
Research and development expenses	93	95	197	166
Advertising expenses	404	$ 190	817	$ 399
Deferred tax asset	$ 390		$ 390		$ 503
Executive Officer One
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of common stock (in dollars per share) \| $ / shares	$ 1.17		$ 1.17
Executive Officer Two
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of common stock (in dollars per share) \| $ / shares	$ 1.40		$ 1.40
Performance stock awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vested (in shares) \| shares	0		0
Performance stock awards \| Executive Officer One
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility (percent)			85.70%
Term of award (years)			5 years
Risk-free interest rate (percent)			3.70%
Dividend yield (percent)			0.00%
Performance stock awards \| Executive Officer Two
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility (percent)			87.00%
Term of award (years)			5 years
Risk-free interest rate (percent)			3.40%
Dividend yield (percent)			0.00%

Summary of Significant Accounting Policies - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2024	Jan. 31, 2024
Accounting Policies [Abstract]
Raw materials and packaging	$ 1,376	$ 1,159
Work in process	324	237
Finished goods	1,148	1,914
Total	$ 2,848	$ 3,310

Summary of Significant Accounting Policies - Schedule of Asset Lives (Details)	Jul. 31, 2024
Minimum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Asset lives (in years)	2 years
Minimum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Asset lives (in years)	3 years
Maximum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Asset lives (in years)	7 years
Maximum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Asset lives (in years)	5 years

Summary of Significant Accounting Policies - Schedule of Other Intangible Assets (Details)	Jul. 31, 2024
Tradenames and trademarks
Finite-Lived Intangible Assets [Line Items]
Other intangible asset lives (in years)	3 years
Customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset lives (in years)	4 years
Customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset lives (in years)	5 years

Summary of Significant Accounting Policies - Schedule of Expenses of Slotting Fees, Sales Discounts and Allowances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Accounting Policies [Abstract]
Gross Sales	$ 28,704	$ 25,415	$ 59,102	$ 49,015
Less: Slotting Fees, Discounts & Allowances	322	625	882	1,104
Net Sales	$ 28,382	$ 24,790	$ 58,220	$ 47,911

Summary of Significant Accounting Policies - Schedule of Disaggregates Gross Revenue by Significant Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Disaggregation of Revenue [Line Items]
Total gross sales	$ 28,704	$ 25,415	$ 59,102	$ 49,015
Northeast
Disaggregation of Revenue [Line Items]
Total gross sales	8,690	9,385	18,257	17,951
Southeast
Disaggregation of Revenue [Line Items]
Total gross sales	8,010	7,192	15,707	13,887
Midwest
Disaggregation of Revenue [Line Items]
Total gross sales	5,768	3,988	12,152	8,255
West
Disaggregation of Revenue [Line Items]
Total gross sales	$ 6,236	$ 4,850	$ 12,986	$ 8,922

Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Earnings Per Share to Net Income (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Numerator:
Net income attributable to common stockholders	$ 1,148	$ 1,721	$ 1,701	$ 3,095
Effect of dilutive securities:	0	21	0	49
Diluted net income	$ 1,148	$ 1,742	$ 1,701	$ 3,144
Denominator:
Weighted average common shares outstanding – basic (in shares)	37,336,000	36,855,000	37,298,000	36,628,000
Weighted average common shares outstanding and assumed conversion – diluted (in shares)	39,604,000	37,490,000	39,535,000	37,195,000
Basic net income per common share (in dollars per share)	$ 0.03	$ 0.05	$ 0.05	$ 0.09
Diluted net income per common share (in dollars per share)	$ 0.03	$ 0.05	$ 0.04	$ 0.08
Anti-dilutive securities excluded (in shares)	0	0	0	0
Restricted stock
Denominator:
Dilutive securities (in shares)	371,000	251,000	343,000	222,000
Performance stock awards
Denominator:
Dilutive securities (in shares)	1,840,000	0	1,840,000	0
Options
Denominator:
Dilutive securities (in shares)	57,000	384,000	54,000	345,000

Property Plant and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands	Jul. 31, 2024	Jan. 31, 2024
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 11,022	$ 7,645
Less: Accumulated Depreciation	3,750	3,209
Total	7,272	4,436
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,489	4,437
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	242	252
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,291	$ 2,956

Property Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 314	$ 263	$ 606	$ 512

Intangible assets, net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2024	Jan. 31, 2024
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 6,497	$ 6,497
Accumulated Amortization	(2,286)	(1,518)
Net Carrying Amount	4,211	4,979
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,418	6,418
Accumulated Amortization	(2,218)	(1,463)
Net Carrying Amount	$ 4,200	$ 4,955
Weighted Average Remaining Life (years)	2 years 9 months 18 days	3 years 3 months 14 days
Tradename and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 79	$ 79
Accumulated Amortization	(68)	(55)
Net Carrying Amount	$ 11	$ 24
Weighted Average Remaining Life (years)	4 months 28 days	10 months 28 days

Intangible assets, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 388	$ 202	$ 768	$ 304

Intangible assets, net - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Jul. 31, 2024	Jan. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
2025 (Remaining)	$ 771
2026	1,513
2027	1,465
2028	462
Net Carrying Amount	$ 4,211	$ 4,979

Related Party Transactions (Details) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
Related Party Transactions (Details) $ in Thousands	Jul. 31, 2024 USD ($) extensionOption	Jul. 31, 2023 USD ($)	Jun. 28, 2023 USD ($)	Jul. 31, 2024 USD ($) extensionOption	Jul. 31, 2023 USD ($)	Jan. 31, 2024 USD ($)	Jun. 28, 2022	Dec. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Promissory notes – related parties	$ 2,250			$ 2,250		$ 1,950
Promissory note – related party, net of current	$ 750			$ 750		2,250
CIF
Related Party Transaction [Line Items]
Ownership interest							24.00%
Related Party \| CIF
Related Party Transaction [Line Items]
Ownership interest							24.00%
Sales		$ 4,300	$ 10,900
Commission expense		29	$ 175
Related Party \| Farmingdale
Related Party Transaction [Line Items]
Number of options to extend lease \| extensionOption	2			2
Rent payments	$ 81	106		$ 159	$ 171
Related Party \| Farmingdale \| Renewal Option One
Related Party Transaction [Line Items]
Lease extension term	10 years			10 years
Related Party \| Farmingdale \| Renewal Option Two
Related Party Transaction [Line Items]
Lease extension term	10 years			10 years
Related Party \| Farmingdale \| December 31, 2026
Related Party Transaction [Line Items]
Rent payments				$ 20
Related Party \| Farmingdale \| End of Initial Lease Term
Related Party Transaction [Line Items]
Rent payments				24
Promissory Note \| Related Party
Related Party Transaction [Line Items]
Promissory note								$ 3,000
Annual principal payments								$ 750
Accrued interest rate per annum								3.50%
Promissory note outstanding	$ 1,500			1,500		1,500
Promissory notes – related parties	750			750		750
Promissory note – related party, net of current	750			750		750
Interest expense	13	$ 20		26	$ 39
Accrued interest	$ 31			$ 31		$ 5

Loan and Security Agreements (Details) - M&T Bank $ in Thousands			3 Months Ended		6 Months Ended
	Dec. 04, 2023	Dec. 29, 2021 USD ($)	Jul. 31, 2024 USD ($)	Jul. 31, 2023 USD ($)	Jul. 31, 2024 USD ($)	Jul. 31, 2023 USD ($)	Jan. 31, 2024 USD ($)
The Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Total available borrowings			$ 5,500		$ 5,500
Outstanding balance on line of credit			0		0		$ 0
Incurred interest			$ 0	$ 26	$ 0	$ 47
The Credit Facility \| Line of Credit \| Maximum
Line of Credit Facility [Line Items]
Advances limit, percent of eligible accounts receivable			80.00%		80.00%
Advances limit, percent of eligible inventory	50.00%
The Credit Facility \| Line of Credit \| Variable Rate Component One \| Minimum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio			2.25		2.25
The Credit Facility \| Line of Credit \| Variable Rate Component One \| SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate					3.25%
The Credit Facility \| Line of Credit \| Variable Rate Component Two \| Minimum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio			1.50		1.50
The Credit Facility \| Line of Credit \| Variable Rate Component Two \| Maximum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio			2.25		2.25
The Credit Facility \| Line of Credit \| Variable Rate Component Two \| SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate					2.75%
The Credit Facility \| Line of Credit \| Variable Rate Component Three \| Maximum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio			1.50		1.50
The Credit Facility \| Line of Credit \| Variable Rate Component Three \| SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate					2.25%
Multiple Disbursement Term Loan
Line of Credit Facility [Line Items]
Incurred interest			$ 80	$ 118	$ 166	$ 237
Original principal amount		$ 7,500	3,800		3,800		4,600
Amortization period (in months)		60 months
Unamortized discount			$ 28		$ 28		$ 38
Multiple Disbursement Term Loan \| Variable Loan Rate
Line of Credit Facility [Line Items]
Measurement base percent	0.00%
Multiple Disbursement Term Loan \| Variable Rate Component One \| Minimum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio	2.25
Multiple Disbursement Term Loan \| Variable Rate Component One \| Variable Loan Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.50%
Multiple Disbursement Term Loan \| Variable Rate Component Two \| Minimum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio	1.50
Multiple Disbursement Term Loan \| Variable Rate Component Two \| Maximum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio	2.25
Multiple Disbursement Term Loan \| Variable Rate Component Two \| Variable Loan Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.00%
Multiple Disbursement Term Loan \| Variable Rate Component Three \| Maximum
Line of Credit Facility [Line Items]
Senior Funded Debt/EBITDA ratio	1.50
Multiple Disbursement Term Loan \| Variable Rate Component Three \| Variable Loan Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%

Concentrations (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
Concentrations (Details) - Customer Concentration Risk	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023	Jan. 31, 2024
Customer One \| Revenue Benchmark
Concentration Risk [Line Items]
Concentration risk, percentage	38.00%	18.00%	40.00%	22.00%
Customer One \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			31.00%		20.00%
Customer Two \| Revenue Benchmark
Concentration Risk [Line Items]
Concentration risk, percentage	11.00%	17.00%		13.00%
Customer Two \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%		15.00%
Customer Three \| Revenue Benchmark
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%		11.00%
Customer Three \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			11.00%		13.00%
Customer Four \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			11.00%		10.00%

Stockholders’ Equity - Narrative (Details) $ / shares in Units, $ in Thousands			3 Months Ended			6 Months Ended
	May 24, 2024 USD ($) shares	Jun. 22, 2023 shares	Jul. 31, 2024 USD ($) $ / shares shares	Apr. 30, 2024 USD ($)	Jul. 31, 2023 USD ($)	Jul. 31, 2024 USD ($) day $ / shares shares	Jul. 31, 2023 USD ($)	Jan. 31, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Preferred stock authorized (in shares) \| shares			20,000,000			20,000,000
Preferred stock par value (in dollars per share) \| $ / shares			$ 0.00001			$ 0.00001
Preferred shares issued upon conversion (in shares) \| shares			15			15
Conversion price (in dollars per share) \| $ / shares			$ 2.00			$ 2.00
Trading days \| day						20
Conversion discount						20.00%
Trading day period \| day						20
Dividends paid \| $					$ 21		$ 49
Options exercised (in shares) \| shares						30,000
Weighted average exercise price (in dollars per share) \| $ / shares						$ 1.48
Common stock issued (in shares) \| shares						30,000
Proceeds from exercise of stock options \| $						$ 44	28
Unrecognized share-based compensation, options \| $			$ 29			29
Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
One-time settlement agreement charge \| $				$ 900
Employees
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Payments for settlement agreements \| $			$ 20			$ 20
Common stock issued for settlement agreements (in shares) \| shares			3,007			3,007
Thomas Toto \| Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Payments for settlement agreements \| $	$ 113
Common stock issued for settlement agreements (in shares) \| shares	17,000
Dean Janeway \| Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Payments for settlement agreements \| $	$ 113
Common stock issued for settlement agreements (in shares) \| shares	17,000
Steve Burns \| Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Payments for settlement agreements \| $	$ 113
Common stock issued for settlement agreements (in shares) \| shares	17,000
Alfred D’Agostino \| Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Payments for settlement agreements \| $	$ 113
Common stock issued for settlement agreements (in shares) \| shares	17,000
Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation \| $			$ 197		63	$ 311	31
Unrecognized stock-based compensation expense, restricted stock units \| $			822			822
Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation \| $			$ 8		18	7	41
Options \| Employees and Contractors
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation \| $						$ (11)
Minimum \| Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period						3 years
Maximum \| Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period						4 years
Preferred Stock, Conversion Period, One
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Conversion period						6 months
Preferred Stock, Conversion Period, Two
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Conversion period						18 months
Series A Preferred Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Preferred stock authorized (in shares) \| shares			120,000			120,000		120,000
Preferred stock par value (in dollars per share) \| $ / shares			$ 0.00001			$ 0.00001		$ 0.00001
Preferred stock outstanding (in shares) \| shares			0			0		0
Series B Preferred Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Preferred stock authorized (in shares) \| shares			200,000			200,000		200,000
Preferred stock par value (in dollars per share) \| $ / shares			$ 0.00001			$ 0.00001		$ 0.00001
Preferred stock outstanding (in shares) \| shares			0			0		0
Cash dividend annual rate						8.00%
Conversion of Series B preferred stock (in shares) \| shares		819,000
Dividends paid \| $					$ 21		$ 49

Stockholders’ Equity - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units	6 Months Ended
	Jul. 31, 2024 $ / shares shares
Restricted Stock Units
Beginning balance (in shares) \| shares	493,078
Granted (in shares) \| shares	56,207
Vested (in shares) \| shares	(74,267)
Forfeited (in shares) \| shares	0
Ending balance (in shares) \| shares	475,018
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 1.91
Granted (in dollars per share) \| $ / shares	6.85
Vested (in dollars per share) \| $ / shares	4.02
Forfeited (in dollars per share) \| $ / shares	0
Ending balance (in dollars per share) \| $ / shares	$ 2.16

Stockholders’ Equity - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 31, 2024	Jan. 31, 2024
Options
Outstanding – beginning balance (in shares)	117,500
Granted (in shares)	0
Exercised (in shares)	(30,000)
Expired/forfeited (in shares)	(15,000)
Outstanding – ending balance (in shares)	72,500	117,500
Exercisable (in shares)	7,500
Weighted Average Exercise Price
Outstanding – beginning balance (in dollars per share)	$ 1.48
Granted (in dollars per share)	0
Exercised (in dollars per share)	1.48
Expired/forfeited (in dollars per share)	1.48
Outstanding – ending balance (in dollars per share)	1.48	$ 1.48
Exercisable (in dollars per share)	$ 1.48
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual life (in years)	7 years 10 months 13 days	8 years 4 months 9 days
Exercisable, weighted average remaining contractual life (in years)	7 years 10 months 13 days
Outstanding, aggregate intrinsic value	$ 445	$ 333
Exercisable, aggregate intrinsic value	$ 46

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Loss Contingencies [Line Items]
Royalty expense	$ 123	$ 129	$ 305	$ 318
Minimum
Loss Contingencies [Line Items]
Royalty expense			$ 125
Tranche One
Loss Contingencies [Line Items]
Percentage of royalty rate on net sales			6.00%
Tranche One \| Maximum
Loss Contingencies [Line Items]
Net sales			$ 500
Tranche Two
Loss Contingencies [Line Items]
Percentage of royalty rate on net sales			4.00%
Tranche Two \| Maximum
Loss Contingencies [Line Items]
Net sales			$ 2,500
Tranche Two \| Minimum
Loss Contingencies [Line Items]
Net sales			$ 500
Tranche Three
Loss Contingencies [Line Items]
Percentage of royalty rate on net sales			2.00%
Tranche Three \| Maximum
Loss Contingencies [Line Items]
Net sales			$ 20,000
Tranche Three \| Minimum
Loss Contingencies [Line Items]
Net sales			$ 2,500
Tranche Four
Loss Contingencies [Line Items]
Percentage of royalty rate on net sales			1.00%
Tranche Four \| Minimum
Loss Contingencies [Line Items]
Net sales			$ 20,000

Leases - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
Leases - Narrative (Details) - USD ($)	Apr. 30, 2024	Jul. 31, 2024	Jul. 31, 2023
Lessee, Lease, Description [Line Items]
Rent payments, first year		$ 566,000
Rent payments, second year		467,000
Rent payments, third year		500,000
Rent payments, fourth year		507,000
Recognition of lease ROU asset and ROU liability		873,000	$ 0
Write-off of lease ROU asset and ROU liability	$ (897,000)	$ 897,000	$ 0
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term		3 months 29 days
Finance lease, remaining lease term		3 months 29 days
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term		7 years 7 months 6 days
Finance lease, remaining lease term		7 years 7 months 6 days
Building \| Farmingdale, New York
Lessee, Lease, Description [Line Items]
Lease term	5 years
Rent payments, first year	$ 16,700
Rent payments, second year	17,200
Rent payments, third year	17,700
Rent payments, fourth year	18,200
Rent payments, fifth year	$ 18,800

Leases - Summary of Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jan. 31, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 267	$ 135
Financing cash flows from finance leases	$ 196	$ 93
Weighted average remaining lease term (in years)
Operating leases	6 years 1 month 24 days		6 years 6 months 25 days
Finance leases	4 years 5 months 4 days		4 years 5 months 26 days
Weighted average discount rate:
Operating leases	5.47%		4.85%
Finance Leases	7.19%		6.74%

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Jul. 31, 2024 USD ($)
Finance Leases
2025 remaining	$ 233
2026	384
2027	336
2028	328
2029	232
Thereafter	150
Total undiscounted future lease payments	1,663
Less: imputed interest	(261)
Total present value of future lease liabilities	1,402
Operating Leases
2025 remaining	280
2026	566
2027	467
2028	500
2029	507
Thereafter	839
Total undiscounted future lease payments	3,159
Less: imputed interest	(453)
Total present value of future lease liabilities	2,706
Total Maturities of Lease Liabilities
2025 remaining	513
2026	950
2027	803
2028	828
2029	739
Thereafter	989
Total undiscounted future lease payments	4,822
Less: imputed interest	(714)
Total present value of future lease liabilities	$ 4,108

Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Tax Provision (Details) - USD ($) $ in Thousands	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023	Jan. 31, 2024
Income Tax Disclosure [Abstract]
Effective tax rate	25.90%	25.40%	25.90%	25.40%
Net deferred tax asset	$ 390		$ 390		$ 503
Valuation allowance	$ 0		$ 0		$ 0

Subsequent Event (Details) - USD ($) $ in Thousands	Aug. 21, 2024	Jul. 31, 2024
Subsequent Event [Line Items]
Monthly rental payments		$ 3,159
25 Branca Road \| Subsequent Event
Subsequent Event [Line Items]
Monthly rental payments	$ 36
25 Branca Road \| Subsequent Event \| Minimum
Subsequent Event [Line Items]
Monthly rental payments during renewal option	38
25 Branca Road \| Subsequent Event \| Maximum
Subsequent Event [Line Items]
Monthly rental payments during renewal option	$ 42

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