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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended October 31, 2024

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

For the transition period from ________ to ________

Commission File No. 001-32530

Perma-Pipe International Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware	36-3922969
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

24900 Pitkin Road, Suite 309, Spring, Texas	77386
(Address of principal executive offices)	(Zip Code)

(847) 966-1000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value per share	PPIH	The Nasdaq Stock Market LLC

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 preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

On December 23, 2024, there were 7,982,568 shares of the registrant's common stock outstanding.

Table of Contents

Perma-Pipe International Holdings, Inc.

FORM 10-Q

For the fiscal quarter ended October 31, 2024

TABLE OF CONTENTS

Item		Page

Part I	FINANCIAL INFORMATION

Item 1.	Financial Statements
	Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended October 31, 2024 and 2023	2
	Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the Three and Nine Months Ended October 31, 2024 and 2023	3
	Consolidated Balance Sheets as of October 31, 2024 (Unaudited) and January 31, 2024	4
	Consolidated Statements of Stockholders' Equity (Unaudited) for the Three and Nine Months Ended October 31, 2024 and 2023	5
	Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended October 31, 2024 and 2023	6
	Notes to Consolidated Financial Statements (Unaudited)	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20

Item 4.	Controls and Procedures	27

Part II	OTHER INFORMATION

Item 5.	Other Information	28

Item 6.	Exhibits	28

SIGNATURES		29

Table of Contents

PART I FINANCIAL INFORMATION

Item 1.

Financial Statements

PERMA-PIPE INTERNATIONAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	*Three Months Ended October 31,*						*Nine Months Ended October 31,*
	*2024*			*2023*			*2024*			*2023*
Net sales	$	41,563		$	45,690		$	113,397		$	110,489
Cost of sales		27,477			32,506			75,320			81,065
Gross profit		14,086			13,184			38,077			29,424

Operating expenses
General and administrative expenses		7,330			5,674			19,457			16,417
Selling expenses		1,170			1,471			3,757			4,201
Total operating expenses		8,500			7,145			23,214			20,618

Income from operations		5,586			6,039			14,863			8,806

Interest expense		468			640			1,489			1,788
Other expense		(50	)		(502	)		(156	)		(350	)
Income before income taxes		5,068			4,897			13,218			6,668

Income tax expense		1,615			1,533			3,692			3,257

Net income		3,453			3,364			9,526			3,411
Less: Net income attributable to non-controlling interest		962			1,429			2,303			1,577
Net income attributable to common stock	$	2,491		$	1,935		$	7,223		$	1,834

Weighted average common shares outstanding
Basic		7,981			7,955			7,947			7,996
Diluted		8,027			8,021			7,991			8,106

Earnings per share attributable to common stock
Basic	$	0.31		$	0.24		$	0.91		$	0.23
Diluted	$	0.31		$	0.24		$	0.90		$	0.23

See accompanying notes to consolidated financial statements.

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PERMA-PIPE INTERNATIONAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	*Three Months Ended October 31,*						*Nine Months Ended October 31,*
	*2024*			*2023*			*2024*			*2023*
Net income	$	3,453		$	3,364		$	9,526		$	3,411

Other comprehensive income (loss)
Foreign currency translation adjustments, net of tax		(185	)		(2,035	)		(1,792	)		(2,133	)
Comprehensive income	$	3,268		$	1,329		$	7,734		$	1,278
Less: Comprehensive income attributable to non-controlling interests		962			1,429			2,303			1,577
Total comprehensive income (loss) attributable to common stock	$	2,306		$	(100	)	$	5,431		$	(299	)

See accompanying notes to consolidated financial statements.

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PERMA-PIPE INTERNATIONAL HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)


	*October 31, 2024*			*January 31, 2024*
ASSETS
Current assets
Cash and cash equivalents	$	13,307		$	5,845
Restricted cash		1,419			1,395
Trade accounts receivable, less allowance for credit losses of $704 at October 31, 2024 and $699 at January 31, 2024		39,904			46,646
Inventories		15,957			15,541
Prepaid expenses and other current assets		11,635			9,697
Unbilled accounts receivable		19,684			16,597
Costs and estimated earnings in excess of billings on uncompleted contracts		2,499			3,097
Total current assets		104,405			98,818
Long-term assets
Property, plant and equipment, net of accumulated depreciation		35,652			37,620
Operating lease right-of-use asset		7,403			6,467
Deferred tax assets		7,221			7,919
Goodwill		2,141			2,222
Other long-term assets		3,927			2,665
Total long-term assets		56,344			56,893
Total assets	$	160,749		$	155,711
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Trade accounts payable	$	20,788		$	25,323
Accrued compensation and payroll taxes		1,280			1,214
Commissions and management incentives payable		5,262			4,523
Revolving line - North America		7,766			5,519
Current maturities of long-term debt		3,682			4,071
Customers' deposits		3,243			4,264
Operating lease liability short-term		1,061			914
Other accrued liabilities		6,634			9,039
Billings in excess of costs and estimated earnings on uncompleted contracts		1,350			495
Income taxes payable		2,728			2,380
Total current liabilities		53,794			57,742
Long-term liabilities
Long-term debt, less current maturities		8,855			9,035
Long-term finance obligation		3,883			4,229
Deferred compensation liabilities		1,407			1,212
Deferred tax liabilities		1,325			1,217
Operating lease liability long-term		7,104			6,270
Loan payable to GIG		2,753			2,753
Other long-term liabilities		1,465			1,275
Total long-term liabilities		26,792			25,991
Non-controlling interest		8,952			6,266
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value, authorized 50,000 shares; 7,983 issued and outstanding at October 31, 2024 and 8,017 at January 31, 2024		80			80
Additional paid-in capital		60,130			60,063
Treasury stock, no shares at October 31, 2024 and 112 shares at January 31, 2024		-			(968	)
Retained earnings		18,344			12,088
Accumulated other comprehensive loss		(7,343	)		(5,551	)
Total stockholders' equity		71,211			65,712
Total liabilities and stockholders' equity	$	160,749		$	155,711

See accompanying notes to consolidated financial statements.

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PERMA-PIPE INTERNATIONAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(In thousands, except share data)

(Unaudited)

	*Common Stock*			*Additional Paid-in Capital*			*Retained Earnings*			*Treasury Stock*			*Accumulated Other Comprehensive Loss*			*Total Stockholders' Equity*
Total stockholders' equity at January 31, 2024	$	80		$	60,063		$	12,088		$	(968	)	$	(5,551	)	$	65,712

Net income attributable to common stock		-			-			1,443			-			-			1,443
Common stock issued under stock plans, net of shares used for tax withholding		-			8			-			-			-			8
Stock-based compensation expense		-			220			-			-			-			220
Amount attributable to non-controlling interest		-			(421	)		-			-			-			(421	)
Foreign currency translation adjustment		-			-			-			-			(1,415	)		(1,415	)
Total stockholders' equity at April 30, 2024	$	80		$	59,870		$	13,531		$	(968	)	$	(6,966	)	$	65,547

Net income attributable to common stock		-			-			3,289			-			-			3,289
Common stock issued under stock plans, net of shares used for tax withholding		1			(210	)		-			-			-			(209	)
Stock-based compensation expense		-			177			-			-			-			177
Amount attributable to non-controlling interest		-			(29	)		-			-			-			(29	)
Foreign currency translation adjustment		-			-			-			-			(192	)		(192	)
Total stockholders' equity at July 31, 2024	$	81		$	59,808		$	16,820		$	(968	)	$	(7,158	)	$	68,583

Net income attributable to common stock		-			-			2,491			-			-			2,491
Common stock issued under stock plans, net of shares used for tax withholding		-			23			-			-			-			23
Retirement of treasury stock		(1	)		-			(967	)		968			-			-
Stock-based compensation expense		-			232			-			-			-			232
Amount attributable to non-controlling interest		-			67			-			-			-			67
Foreign currency translation adjustment		-			-			-			-			(185	)		(185	)
Total stockholders' equity at October 31, 2024	$	80		$	60,130		$	18,344		$	-		$	(7,343	)	$	71,211

	*Common Stock*			*Additional Paid-in Capital*			*Retained Earnings*			*Treasury Stock*			*Accumulated Other Comprehensive Loss*			*Total Stockholders' Equity*
Total stockholders' equity at January 31, 2023	$	80		$	62,562		$	1,617		$	(26	)	$	(6,449	)	$	57,784

Net loss attributable to common stock		-			-			(1,123	)		-			-			(1,123	)
Stock-based compensation expense		-			229			-			-			-			229
Foreign currency translation adjustment		-			-			-			-			(437	)		(437	)
Total stockholders' equity at April 30, 2023	$	80		$	62,791		$	494		$	(26	)	$	(6,886	)	$	56,453

Net income attributable to common stock		-			-			1,022			-			-			1,022
Common stock issued under stock plans, net of shares used for tax withholding		-			(274	)		-			-			-			(274	)
Repurchase of common stock		1			-			-			(312	)		-			(311	)
Stock-based compensation expense		-			245			-			-			-			245
Foreign currency translation adjustment		-			-			-			-			339			339
Total stockholders' equity at July 31, 2023	$	81		$	62,762		$	1,516		$	(338	)	$	(6,547	)	$	57,474

Net income attributable to common stock		-			-			1,935			-			-			1,935
Repurchase of common stock		(1	)		-			-			(629	)		-			(630	)
Stock-based compensation expense		-			229			-			-			-			229
Foreign currency translation adjustment		-			-			-			-			(2,035	)		(2,035	)
Total stockholders' equity at October 31, 2023	$	80		$	62,991		$	3,451		$	(967	)	$	(8,582	)	$	56,973

Shares	*2024*			*2023*
Balances at beginning of year		8,016,781			8,007,002
Treasury stock retired		(112,015	)		-
Shares issued, net of shares used for tax withholding		77,802			66,726
Prior period adjustments		-			(56,947	)
Balances at period end		7,982,568			8,016,781

See accompanying notes to consolidated financial statements.

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PERMA-PIPE INTERNATIONAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	*Nine Months Ended October 31,*
	*2024*			*2023*
Operating activities
Net income	$	9,526		$	3,411
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		2,687			2,774
Deferred tax expense		1,019			145
Stock-based compensation expense		629			686
Provision on uncollectible accounts		83			(37	)
Loss (gain) from disposal of fixed assets		130			(13	)
Changes in operating assets and liabilities
Accounts receivable		6,047			(5,377	)
Inventories		(970	)		(1,426	)
Costs and estimated earnings in excess of billings on uncompleted contracts		1,452			(175	)
Accounts payable		(3,954	)		9,346
Accrued compensation and payroll taxes		(124	)		1,167
Customers' deposits		(894	)		1,272
Income taxes payable		(904	)		327
Prepaid expenses and other current assets		(952	)		205
Unbilled accounts receivable		(3,708	)		(2,776	)
Other assets and liabilities		(2,161	)		(1,912	)
Net cash provided by operating activities		7,906			7,617
Investing activities
Capital expenditures		(1,555	)		(8,204	)
Proceeds from insurance recovery for property and equipment		-			5
Net cash used in investing activities		(1,555	)		(8,199	)
Financing activities
Proceeds from revolving credit lines		57,637			120,467
Payments of debt on revolving credit lines		(55,765	)		(117,419	)
Payments of principal on finance obligation		(138	)		(84	)
Payments of other debt		(174	)		(179	)
Decrease in drafts payable		(19	)		(199	)
Payments on finance lease obligations		(23	)		(176	)
Repurchase of common stock		-			(941	)
Stock options exercised and taxes paid related to restricted shares vested		(178	)		(273	)
Net cash provided by financing activities		1,340			1,196
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(205	)		1
Net increase in cash, cash equivalents and restricted cash		7,486			615
Cash, cash equivalents and restricted cash - beginning of period		7,240			6,793
Cash, cash equivalents and restricted cash - end of period	$	14,726		$	7,408
Supplemental cash flow information
Cash interest paid	$	1,456		$	1,754
Cash income taxes paid		3,297			2,546
Fixed assets acquired from non affiliates - non-cash	$	-		$	4,357

See accompanying notes to consolidated financial statements.

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PERMA-PIPE INTERNATIONAL HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2024

(In thousands, except per share data, or unless otherwise specified)

(Unaudited)

Note 1 - Basis of presentation

The interim consolidated financial statements of Perma-Pipe International Holdings, Inc., and subsidiaries (collectively, "PPIH", "Company", or "Registrant") are unaudited, but include all adjustments that the Company's management considers necessary to fairly state the financial position and results of operations for the periods presented. These adjustments consist of normal recurring adjustments. Certain information and footnote disclosures have been omitted pursuant to Securities and Exchange Commission ("SEC") rules and regulations. The consolidated balance sheet as of January 31, 2024 is derived from the audited consolidated balance sheet as of that date. The results of operations for any interim period are not necessarily indicative of future or annual results. Interim financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's latest Annual Report on Form 10-K. The Company's fiscal year ends on January 31. Years and balances described as 2024 and 2023 are for the fiscal year ending January 31, 2025 and for the fiscal year ended January 31, 2024, respectively.

Revision of Previously Issued Financial Statements

During the six months ended July 31, 2024, the Company identified and corrected an error relating to a subsidiary in the Middle East incorrectly recording a duplicate invoice related to the purchase of property, plant, and equipment ("PP&E"), resulting in an overstatement of PP&E and trade accounts payable of $1.4 million on the unaudited consolidated balance sheet as of April 30, 2024, and a corresponding overstatement of net cash provided by operating activities and net cash used in investing activities in the consolidated statement of cash flows during the three months ended April 30, 2024. The Company determined that the error was not material to the unaudited consolidated financial statements in its Quarterly Report on Form 10-Q for the three months ended April 30, 2024. However, in order to correctly present the unaudited consolidated financial statements, management will revise the unaudited consolidated financial statements as of and for the three months ended April 30, 2024, the next time such unaudited consolidated financial statements are filed which will be in connection with the issuance of the Quarterly Report on Form 10-Q for the three months ended April 30, 2025.

The following tables summarize the impact of this correction as of and for the periods presented:

	*April 30, 2024*
Consolidated Balance Sheet	*As Reported*		*Adjustment*			*As Revised*
Property, plant and equipment, net of accumulated depreciation	$	38,211	$	(1,423	)	$	36,788
Total assets	$	157,163	$	(1,423	)	$	155,740

Trade accounts payable	$	24,672		(1,423	)	$	23,249
Total current liabilities	$	59,410	$	(1,423	)	$	57,987

	*April 30, 2024*
Consolidated Statement of Cash Flows	*As Reported*			*Adjustment*			*As Revised*
Operating activities
Accounts payable		(268	)		(1,423	)		(1,691	)
Net cash provided by operating activities	$	1,350		$	(1,423	)	$	(73	)

Investing activities
Capital expenditures	$	(2,012	)	$	1,423		$	(589	)
Net cash used in investing activities	$	(2,012	)	$	1,423		$	(589	)

Note 2 - Business segment reporting

The Company is engaged in the manufacture and sale of products in one reportable segment: Piping Systems. The Company engineers, manufactures and sells pre-insulated specialty piping systems and leak detection systems. Pre-insulated specialty piping systems include: (i) insulated and jacketed district heating and cooling piping systems for efficient energy distribution from central energy plants to multiple locations, (ii) primary and secondary containment piping systems for transporting chemicals, hazardous fluids and petroleum products, (iii) the coating and/or insulation of oil and gas gathering and transmission pipelines, and (iv) liquid and powder based anti-corrosion coatings applied both to the external and internal surfaces of steel pipe, including shapes like bends, reducers, tees, and other spools/fittings used in pipelines for the transportation of oil and gas products and potable water. The Company's leak detection systems are sold with its piping systems or on a stand-alone basis to monitor areas where fluid intrusion may contaminate the environment, endanger personal safety, cause a fire hazard, impair essential services or damage equipment or property.

Note 3 - Accounts receivable

The majority of the Company's accounts receivable are due from geographically dispersed contractors and manufacturing companies. Credit is extended based on an evaluation of a customer's financial condition. In the United States, collateral is not generally required. In the United Arab Emirates ("U.A.E."), Saudi Arabia, Egypt and India, letters of credit are usually obtained for significant orders. Accounts receivable are due within various time periods specified in the terms applicable to the specific customer and are stated as amounts due from customers net of an allowance for claims and credit losses. Standard payment terms are generally net 30 to 60 days. The allowance for credit losses is based on specifically identified amounts in customers' accounts, where future collectability is deemed uncertain. Management may exercise its judgment in adjusting the provision as a consequence of known items, such as current economic factors and credit trends. Past due trade accounts receivable balances are written off when the Company's collection efforts have been unsuccessful in collecting the amount due and the amount is deemed uncollectible. The write off is recorded against the allowance for credit losses.

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In 2015, the Company completed a project in the Middle East with billings in the aggregate amount of approximately $41.9 million. The system has not yet been commissioned by the customer. Nevertheless, the Company has received approximately $40.1 million as of October 31, 2024, with a remaining balance due in the amount of $1.8 million, all of which pertains to retention clauses within the agreements with the Company's customer, and which become payable by the customer when this project is fully tested and commissioned. Of this amount, $1.3 million is classified in other long-term assets on the Company's consolidated balance sheets.

The Company has been actively involved in ongoing efforts to collect this outstanding balance. The Company continues to engage with the customer to ensure full payment of the open balances, and during the nine months ended October 31, 2024, and at various times throughout 2023, the Company received partial payments to settle $0.3 million and $0.6 million, respectively, of the customer's outstanding balances. Further, the Company has been engaged by the customer to perform additional work in 2024 under customary trade terms that support the continued cooperation between the Company and the customer. As a result, the Company did not reserve any allowance against the remaining outstanding balances as of October 31, 2024. However, if the Company's efforts to collect on this account are not successful, the Company may recognize an allowance for all, or substantially all, of any such then uncollected amounts.

For the three months ended October 31, 2024, no individual customer accounted for more than 10% of the Company's consolidated net sales, and during the same period in 2023, one customer accounted for greater than 10% of the Company's consolidated net sales. For the nine months ended October 31, 2024 and 2023, no individual customer accounted for more than 10% of the Company's consolidated net sales.

As of October 31, 2024 and January 31, 2024, no individual customer accounted for more than 10% of the Company's accounts receivable, and one customer accounted for more than 10% of the Company's accounts receivable, respectively.

Note 4 - Revenue recognition

The Company accounts for its revenues under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers.

Revenue from contracts with customers

The Company defines a contract as an agreement that has approval and commitment from both parties, defined rights and identifiable payment terms, which ensures the contract has commercial substance and that collectability is reasonably assured.

The Company’s standard revenue transactions are classified into two main categories:

Systems and Coating - which include all bundled products in which the Company engineers, and manufactures pre-insulated specialty piping systems mainly relating to the district heating and cooling and oil & gas markets.

Products - which include cables, leak detection products, heat trace products, material/goods not bundled with piping or flowline systems, and field services not bundled into a project contract.

In accordance with ASC 606-10-25-27 through 29, the Company recognizes specialty piping and coating systems revenue over time as the manufacturing process progresses because one of the following conditions exist:

the customer owns the material that is being coated, so the customer controls the asset and thus the work-in-process; or

the customer controls the work-in-process due to the custom nature of the pre-insulated, fabricated system being manufactured, which has no alternative future use, and there is a right to payment for work performed to date plus profit margin.

Products revenue is recognized when goods are shipped or services are performed (ASC 606-10-25-30).

A breakdown of the Company's revenues by revenue class for the three and nine months ended October 31, 2024 and 2023 are as follows:

	*Three Months Ended October 31,*										*Nine Months Ended October 31,*
	*2024*					*2023*					*2024*					*2023*
	*Sales*		*% of Total*			*Sales*		*% of Total*			*Sales*		*% of Total*			*Sales*		*% of Total*
Products	$	3,622		8	%	$	2,553		5	%	$	9,670		8	%	$	7,541		7	%

Specialty Piping Systems and Coating
Revenue recognized under input method		12,268		30	%		18,641		41	%		35,020		31	%		41,779		38	%
Revenue recognized under output method		25,673		62	%		24,496		54	%		68,707		61	%		61,169		55	%
Total	$	41,563		100	%	$	45,690		100	%	$	113,397		100	%	$	110,489		100	%

The input method as noted in ASC 606-10-55-20 is used by certain operating entities to measure revenue by the costs incurred to date relative to the estimated costs to satisfy the contract over time. Generally, these contracts are considered a single performance obligation satisfied over time and due to the custom nature of the goods and services, the "over time" method is the most faithful depiction of the Company’s performance as it measures the value of the goods and services transferred to the customer. Costs include all material, labor, and other direct costs incurred to satisfy the performance obligations of the contract. Revenue recognition begins when projects costs are incurred.

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The output method as noted in ASC 606-10-55-17 is used by all other operating entities to measure revenue by the direct measurement of the outputs produced relative to the remaining goods promised under the contract. Due to the types of end customers, generally these contracts require formal inspection protocols or specific export documentation for units produced, or produced and shipped, therefore, the output method is the most faithful depiction of the Company’s performance under the contract. Depending on the conditions of the contract, revenue may be recognized based on units produced, inspected and held by the Company prior to shipment or on units produced, inspected and shipped.

Contract assets and liabilities

Contract assets represent revenue recognized in excess of amounts billed for work in progress for which the Company has a valid contract and an enforceable right to payment for work completed. Contract liabilities represent billings in excess of costs for work in progress for which the Company has a valid contract and an enforceable right to payment for work completed. Both customer billings and the satisfaction (or partial satisfaction) of the performance obligation(s) occur throughout the manufacturing process and impact the period end balances in these accounts. In addition, contract assets include receivables or amounts that are billable beyond the passage of time.

The following table shows the reconciliation of costs in excess of billings and billings in excess of costs:

	*October 31, 2024*			*January 31, 2024*
Costs incurred on uncompleted contracts	$	15,742		$	21,912
Estimated earnings		11,766			11,270
Earned revenue		27,508			33,182
Less billings to date		26,359			30,580
Costs in excess of billings, net	$	1,149		$	2,602
Balance sheet classification
Contract assets: Costs and estimated earnings in excess of billings on uncompleted contracts	$	2,499		$	3,097
Contract liabilities: Billings in excess of costs and estimated earnings on uncompleted contracts		(1,350	)		(495	)
Costs in excess of billings, net	$	1,149		$	2,602

The Company anticipates that substantially all costs incurred on uncompleted contracts as of October 31, 2024 will be billed and collected within one year.

Unbilled accounts receivable

The Company has recorded $19.7 million and $16.6 million of unbilled accounts receivable on the consolidated balance sheets as of October 31, 2024 and January 31, 2024, respectively, from revenues generated by certain of its subsidiaries. The Company has fulfilled all performance obligations and has recorded revenue under the respective contracts. The deliverables under these contracts have been accepted by the customer and billings will be made once the customer takes possession of or arranges shipping for the products. The Company anticipates that substantially all of the amounts included in unbilled accounts receivable as of October 31, 2024 will be billed within one year.

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Note 5 - Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method for all inventories.

Inventories consisted of the following:

	*October 31, 2024*		*January 31, 2024*
Raw materials	$	15,033	$	13,787
Work in process		481		611
Finished goods		1,264		2,022
Subtotal		16,778		16,420
Less allowance		821		879
Inventories	$	15,957	$	15,541

The Company conducts periodic reviews of its inventory and records allowances for slow moving and obsolete items to reflect their net realizable value, which is primarily attributable to finished goods.

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Note 6 - Income taxes

The determination of the consolidated provision for income taxes, deferred tax assets and liabilities and related valuation allowances requires management to make judgments and estimates. As a company with subsidiaries in foreign jurisdictions, the process of calculating income taxes involves estimating current tax obligations and exposures in each jurisdiction as well as making judgments regarding the future recoverability of deferred tax assets. The relative proportion of taxable income earned domestically versus internationally can fluctuate significantly from period to period. Changes in the estimated level of annual pre-tax income, tax laws and the results of tax audits can affect the overall effective income tax rate, which impacts the level of income tax expense and net income. Judgments and estimates related to the Company's projections and assumptions are inherently uncertain; therefore, actual results could differ materially from projections.

The Company's worldwide effective tax rates ("ETR") for the three months ended October 31, 2024 and 2023 were 32% and 31%, respectively. The Company's ETR was 28% and 49% for the nine months ended October 31, 2024 and 2023, respectively. The change in the ETR is due to the ability to recognize tax benefits on losses in the United States in the current year, whereas the prior year had a full valuation allowance and changes to the mix of income and loss in various jurisdictions.

The Company expects that future distributions from foreign subsidiaries will not be subject to incremental U.S. federal tax as they will be excludible from U.S. taxable income either as remittances of previously taxed earnings and profits or eligible for a full dividends received deduction. Current and future earnings in the Company's subsidiaries in Canada and Egypt are not permanently reinvested. The earnings from these subsidiaries are subject to tax in their local jurisdiction, and withholding taxes in these jurisdictions are considered. As such, the Company has accrued a liability of $0.8 million as of October 31, 2024 related to these taxes.

Note 7 - Goodwill

All identifiable goodwill as of October 31, 2024 and January 31, 2024, is attributable to the purchase of the remaining 50% interest in Perma-Pipe Canada, Ltd., which occurred in 2016.

The Company performs an impairment assessment of goodwill annually as of January 31, or more frequently if triggering events occur that could indicate that more likely than not that the fair value of the reporting unit did not exceed its carrying value, resulting in an impairment.

The following table provides a reconciliation of changes in the carrying amount of goodwill:

		*January 31, 2024*				*Foreign exchange change effect*				*October 31, 2024*
Goodwill		$	2,222			$	(81	)		$	2,141

There were no triggering events identified during the three and nine months ended October 31, 2024.

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Note 8 - Stock-based compensation

The Company has prior incentive plans under which previously granted awards remain outstanding, but under which no new awards may be granted, including the Company's 2021 Omnibus Stock Incentive Plan, which expired in May 2024. At October 31, 2024, the Company had reserved a total 196,276 shares for grants and issuances under these incentive plans, including issuances pursuant to unvested or unexercised prior awards.

The Company's 2024 Omnibus Stock Incentive Plan, dated May 28, 2024, was approved by the Company's stockholders in July 2024 ("2024 Plan"). The 2024 Plan will expire in July 2027. The 2024 Plan authorizes awards to officers, employees, consultants, and independent directors. The 2024 Plan provides for the grant of deferred shares, non-qualified stock options, incentive stock options, restricted shares, restricted stock units, and performance-based restricted stock units intended to qualify under section 422 of the Internal Revenue Code.

Grants were made in connection with the 2024 Plan and the prior incentive plans to employees, officers, and independent directors, as further described below.

Stock-based compensation expense

The Company has granted stock-based compensation awards to eligible employees, officers or independent directors. The Company recognized the following stock-based compensation expense for the periods presented:

	*Three Months Ended October 31,*				*Nine Months Ended October 31,*
	*2024*		*2023*		*2024*		*2023*
Restricted stock-based compensation expense	$	232	$	227	$	629	$	686

Stock options

The Company did not grant any stock options during the three or nine months ended October 31, 2024. The following table summarizes the Company's stock option activity:

	*Options*			*Weighted Average Exercise Price (Per share)*		*Weighted Average Remaining Contractual Term (In years)*		*Aggregate Intrinsic Value*
Outstanding at January 31, 2024		22		$	11.15		0.7	$	6
Exercised		(5	)		6.89		-		21
Expired or forfeited		(17	)		12.41		-		-
Outstanding and exercisable at October 31, 2024		-		$	6.85		1.1	$	4

There was no vesting, expiration or forfeiture of previously unvested stock options during the nine months ended October 31, 2024. In addition, there were no remaining unvested stock options outstanding, and therefore no unrecognized compensation expense related to unvested stock options.

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Restricted stock

The following table summarizes the Company's restricted stock activity for the nine months ended October 31, 2024:

	*Restricted Shares*			*Weighted Average Price (Per share)*		*Aggregate Intrinsic Value*
Outstanding at January 31, 2024		222		$	9.33	$	2,078
Granted		108			8.81
Vested and issued		(73	)		9.36
Forfeited or retired for taxes		(27	)		10.29
Outstanding at October 31, 2024		230		$	9.05	$	2,080

As of October 31, 2024, there was $1.3 million of unrecognized compensation expense related to unvested restricted stock granted under the plans. These costs are expected to be recognized over a weighted average period of 1.9 years.

Note 9 - Earnings per share

	*Three Months Ended October 31,*				*Nine Months Ended October 31,*
	*2024*		*2023*		*2024*		*2023*
Basic weighted average common shares outstanding at October 31, 2024		7,981		7,955		7,947		7,996
Dilutive effect of equity compensation plans		46		66		44		110
Weighted average common shares outstanding assuming full dilution		8,027		8,021		7,991		8,106

Stock options and restricted stock not included in the computation of diluted earnings per share of common stock because the option exercise prices or grant date prices exceeded the average market prices of the common shares		-		122		2		18
Stock options and restricted stock with exercise prices or grant date prices below the average market prices		46		66		44		170

Net income attributable to common stock	$	2,491	$	1,935	$	7,223	$	1,834

Earnings per share attributable to common stock
Basic	$	0.31	$	0.24	$	0.91	$	0.23
Diluted	$	0.31	$	0.24	$	0.90	$	0.23

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Note 10 - Debt

Debt totaled $27.0 million and $25.7 million at October 31, 2024 and January 31, 2024, respectively.

Revolving lines - North America. On September 20, 2018, and as amended, extended, or renewed subsequently thereafter, the Company and certain of its U.S. and Canadian subsidiaries (collectively the “North American Loan Parties”) entered into a Revolving Credit and Security Agreement (the “Credit Agreement”) with PNC Bank, National Association ("PNC"), as administrative agent and lender, providing for a three-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the “Senior Credit Facility”). The Credit Agreement with PNC was subsequently extended on September 17, 2021, providing for a new five-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the "Renewed Senior Credit Facility"). The Renewed Senior Credit Facility matures on September 20, 2026.

As of October 31, 2024, the Company had borrowed an aggregate of $7.8 million at a rate of 9.5% and had $3.5 million available under the Renewed Senior Credit Facility. As of January 31, 2024, the Company had borrowed an aggregate of $5.5 million and had $4.0 million available under the Renewed Senior Credit Facility.

The Company was in compliance with respect to the covenants under the Credit Agreement as of October 31, 2024.

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Finance obligation - buildings and land. On April 14, 2021, the Company entered into a purchase and sale agreement, pursuant to which the Company sold its land and buildings in Lebanon, Tennessee (the "Property") for $10.4 million. The transaction generated net cash proceeds of $9.1 million. Concurrently with the sale, the Company paid off the approximately $0.9 million mortgage note on the Property to its lender. The Company used the remaining proceeds to repay its borrowings under the Senior Credit Facility, for strategic investments, and for general corporate needs. Concurrent with the sale of the Property, the Company entered into a fifteen-year lease agreement (the “Lease Agreement”), whereby the Company leases back the Property at an annual rental rate of approximately $0.8 million, subject to annual rent increases of 2.0%. Under the Lease Agreement, the Company has four consecutive options to extend the term of the lease by five years for each such option.

In accordance with ASC 842, Leases, this transaction was recorded as a failed sale and leaseback as the present value of lease payments exceeded substantially the fair value of the underlying assets. The Company utilized an incremental borrowing rate of 8.0% to determine the finance obligation to record for the amounts received and will continue to depreciate the assets. The current portion of the finance obligation of $0.2 million is recognized in current maturities of long-term debt and the long-term portion of $8.9 million is recognized in long-term finance obligation on the Company's consolidated balance sheets as of October 31, 2024. The net carrying amount of the financial liability and remaining assets will be zero at the end of the lease term.

Revolving lines - foreign. The Company also has credit arrangements used by its Middle Eastern subsidiaries in the U.A.E., Egypt and Saudi Arabia as discussed further below.

United Arab Emirates

The Company has a revolving line for 8.0 million U.A.E. Dirhams (approximately $ 2.2 million at October 31, 2024 ) from a bank in the U.A.E. As of October 31, 2024 , the facility has an interest rate of approximately 7.7% and expired in July 2024. The facility was subsequently renewed in November 2024 with substantially the same terms and conditions and expires in July 2025. The Company had borrowed an aggregate of $1.1 million as of October 31, 2024 and $0.2 million as of January 31, 2024 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. As of October 31, 2024 and January 31, 2024 , the Company had unused borrowing availability of approximately $1.0 million and $1.9 million, respectively.

The Company has a revolving line for 20.5 million U.A.E. Dirhams (approximately $ 5.6 million at October 31, 2024 ) from a bank in the U.A.E. As of October 31, 2024 , the facility has an interest rate of approximately 8.6% and expired in August 2024. The facility was subsequently renewed in November 2024 with substantially the same terms and conditions, except for the revolving line, which decreased to 17.5 million U.A.E. Dirhams (approximately $4.8 million at October 31, 2024 ) and expires in August 2025. The reduction in the revolving line was due primarily to the removal of 2 million U.A.E. Dirhams (approximately $0.5 million) in connection with a capital expenditure component that is no longer applicable to the revolving credit facility and, to a lesser extent, 1 million U.A.E. Dirhams (approximately $0.3 million) due to a decrease in revolver capacity. The Company had borrowed an aggregate of $0.7 million as of October 31, 2024 and $0.1 million as of January 31, 2024 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The Company had unused borrowing availability of approximately $1.0 million as of October 31, 2024 and January 31, 2024 , respectively.

Egypt

In June 2021, and as renewed or amended subsequently thereafter, the Company's Egyptian subsidiary entered into a credit arrangement with a bank in Egypt for a revolving line of 100.0 million Egyptian Pounds (approximately $ 2.0 million at October 31, 2024 ). This credit arrangement is in the form of project financing, for which the line is secured by certain assets (such as accounts receivable) of the Company's Egyptian subsidiary. Among other covenants, the credit arrangement established a maximum leverage ratio allowable and restricted the Company's Egyptian subsidiary's ability to undertake any additional debt. As of October 31, 2024 , the facility has an interest rate of approximately 20.8% and expired in November 2024. The Company has started the process to renew and extend this credit agreement and the credit facility has continued without interruption or penalty. As of October 31, 2024 , the Company had an immaterial amount outstanding with respect to this credit arrangement, and approximately $1.4 million outstanding at January 31, 2024 , which is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. Further, as of October 31, 2024 and January 31, 2024 , the Company had unused borrowing capacity of $2.0 million and $3.2 million, respectively.

In December 2021, the Company entered into a credit arrangement for project financing with a bank in Egypt for 28.2 million Egyptian Pounds. As this project has progressed and the Company has made collections, the facility has decreased to a current amount of 2.1 million Egyptian Pounds (approximately $0.1 million at October 31, 2024 ). This credit arrangement is in the form of project financing at rates competitive in Egypt. The line is secured by the contract for a project being financed by the Company's Egyptian subsidiary. The facility has an interest rate of approximately 11.0% and, as of November 2022, is no longer available for borrowings by the Company. The facility will expire in connection with final customer balance collections and the completion of the project. The Company had approximately $0.1 million outstanding as of October 31, 2024 and January 31, 2024 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets.

Saudi Arabia

In March 2022, the Company's Saudi Arabian subsidiary entered into a credit arrangement with a bank in Saudi Arabia for a revolving line of 37.0 million Saudi Riyals (approximately $9.9 million at October 31, 2024). This credit arrangement is in the form of project financing at rates competitive in Saudi Arabia. The line is secured by certain assets (such as accounts receivable) of the Company's Saudi Arabian subsidiary. The facility was renewed in May 2024 with substantially the same terms and conditions and expires in May 2025. As of October 31, 2024, the facility has an interest rate of approximately 9.5%. The Company had borrowed an aggregate of $1.3 million and $3.2 million as of October 31, 2024 and January 31, 2024, respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The unused borrowing availability attributable to this credit arrangement at October 31, 2024 and January 31, 2024, was $3.3 million and $6.1 million, respectively.

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These credit arrangements are in the form of overdraft facilities and project financing at rates competitive in the countries in which the Company operates. The lines are secured by certain equipment, certain assets (such as accounts receivable and inventory), and in some cases, a guarantee by the Company. Some credit arrangement covenants require a minimum tangible net worth to be maintained, including maintaining certain levels of intercompany subordinated debt. In addition, some of the revolving credit facilities restrict payment of dividends or undertaking of additional debt. The Company guarantees only a portion of the subsidiaries' debt, including foreign debt. The amount of foreign subsidiary debt guaranteed by the Company was approximately $1.1 million and $0.1 million at October 31, 2024 and January 31, 2024, respectively.

The Company was in compliance with respect to the covenants under the credit arrangements in the U.A.E., Egypt, and Saudi Arabia as of October 31, 2024, with the exception of an arrangement that has expired and has not yet been renewed. Although a certain arrangement has expired and the borrowings could be required to be repaid immediately by the bank, the Company is in regular communication with the bank throughout the renewal process and the arrangement has continued without interruption or penalty. On October 31, 2024, interest rates were based on (i) the Emirates Inter Bank Offered Rate plus 3.0% to 3.5% per annum for the U.A.E. credit arrangements, two of which have a minimum interest rate of 4.5% per annum; (ii) either the Central Bank of Egypt corporate loan rate plus 1.5% to 3.5% per annum or the stated interest rate in the agreements for the Egypt credit arrangements; and (iii) the Saudi Inter-Bank Offered Rate plus 3.5% for the Saudi Arabia credit arrangement. Based on these base rates, as of October 31, 2024, the Company's interest rates ranged from 7.7% to 20.8%, with a weighted average rate of 10.6%, and the Company had facility limits totaling $19.7 million under these credit arrangements. As of October 31, 2024, $11.0 million of availability was used to support letters of credit to guarantee amounts committed for inventory purchases and for performance guarantees. Additionally, as of October 31, 2024, the Company had borrowed $3.2 million and had an additional $8.3 million of borrowing remaining available under the foreign revolving credit arrangements. The foreign revolving lines balances were included as a component of current maturities of long-term debt in the Company's consolidated balance sheets as of October 31, 2024 and January 31, 2024.

In June 2023, the Company assumed a promissory note of approximately $2.8 million in connection with the formation of the joint venture with Gulf Insulation Group (see Note 16). In accordance with the promissory note, all principal is due and payable on the maturity date of April 9, 2026, with the option to prepay, in whole or in part, at any time prior to the maturity date, without premium or penalty.

Mortgages. On July 28, 2016, the Company entered into a mortgage agreement secured by the Company's manufacturing facility located in Alberta, Canada that matures on December 23, 2042. As of October 31, 2024, the remaining balance on the mortgage in Canada is approximately CAD 5.8 million (approximately $4.2 million at October 31, 2024). The interest rate is variable, and was 7.8% at October 31, 2024. The principal balance is included as a component of long-term debt, less current maturities in the Company's consolidated balance sheets and is presented net of issuance costs of $0.1 million as of October 31, 2024 and January 31, 2024, respectively.

Note 11 - Leases

The Company classifies its leases as either operating or finance leases, which are recorded on the Company's consolidated balance sheets. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities short-term, and operating lease liabilities long-term in the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, current maturities of long-term debt, and long-term debt less current maturities in the Company's consolidated balance sheets.

In calculating the ROU asset and lease liability, the Company elects to combine lease and non-lease components. Additionally, most of the Company's leases do not provide an implicit rate, resulting in the Company using its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

The Company excludes short-term leases having an initial term of 12 months or less in accordance with an accounting policy election and recognizes rent expense on a straight-line basis over the lease term.

Operating Leases.

In August 2020, the Company entered into a new lease in Abu Dhabi for land upon which the Company built a facility. The initial annual payments were approximately 1.2 million U.A.E. Dirhams (approximately $0.3 million at October 31, 2024), inclusive of rent, escalation clauses, and other common charges contained in the agreement. The lease expires in August 2050.

In March and December 2022, the Company served Notices of Termination to its lessor in connection with a lease of land and buildings in Fujairah in the U.A.E., for which the Company intended to relocate to a different facility in Abu Dhabi. Portions of the leased space were vacated in December 2022, and the Company expects to vacate the remaining space in December 2024. In connection with the Notices of Termination, the Company was required to pay an additional amount equal to three months' rent. This also resulted in adjustments to reduce the carrying balances attributable to short-term and long-term operating lease liabilities and operating lease right-of-use assets by $0.4 million, $6.0 million, and $5.5 million, respectively. The additional payment and the effect of these adjustments were recorded in prior periods, and did not impact the Company's consolidated financial statements for the year ended January 31, 2024, or during the three and nine months ended October 31, 2024. There were no other adjustments in connection with the Notices the Termination.

Finance Leases.

The Company has several lease agreements, with lease terms of one to thirty years, which consist of real estate, vehicles and office equipment leases. These leases do not require any contingent rental payments, impose any financial restrictions or contain any residual value guarantees. Certain of the Company’s leases include renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liabilities and ROU assets as the Company is not reasonably certain to exercise the options.

At October 31, 2024, the Company had finance lease liabilities of $0.1 million included in current maturities of long-term debt and long-term debt less current maturities, and financial ROU assets of $0.3 million which were included in property plant and equipment, net of accumulated depreciation in the consolidated balance sheets.

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Supplemental balance sheet information related to leases is as follows:

Operating and Finance leases	*October 31, 2024*			*January 31, 2024*
Finance leases assets:
Property and Equipment - gross	$	935		$	970
Accumulated depreciation and amortization		(615	)		(536	)
Property and Equipment - net	$	320		$	434

Finance lease liabilities:
Finance lease liability short-term	$	33		$	113
Finance lease liability long-term		53			-
Total finance lease liabilities	$	86		$	113

Operating lease assets:
Operating lease ROU assets	$	7,403		$	6,467

Operating lease liabilities:
Operating lease liability short-term	$	1,061		$	914
Operating lease liability long-term		7,104			6,270
Total operating lease liabilities	$	8,165		$	7,184

Total lease costs consist of the following:

		*Three Months Ended October 31,*					*Nine Months Ended October 31,*
Lease costs	*Consolidated Statements of Operations Classification*	*2024*		*2023*			*2024*		*2023*
Finance Lease Costs
Amortization of ROU assets	Cost of sales	$	25	$	37		$	100	$	121
Interest on lease liabilities	Interest expense		1		3			5		7
Operating lease costs	Cost of sales, SG&A expenses		463		564			1,361		1,450
Short-term lease costs (1)	Cost of sales, SG&A expenses		151		99			384		350
Sub-lease income	SG&A expenses		-		(20	)		-		(61	)
*Total Lease costs*		$	640	$	683		$	1,850	$	1,867

(1) Includes variable lease costs, which are not material.

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Supplemental cash flow information related to leases is as follows:

	*Nine Months Ended October 31,*
	*2024*		*2023*
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash outflows from finance leases	$	23	$	176
Operating cash outflows from finance leases		5		7
Operating cash outflows from operating leases		1,690		1,399

ROU assets obtained in exchange for new lease obligations:
Finance leases liabilities	$	-	$	139
Operating leases liabilities	$	1,718	$	3,615

Weighted-average lease terms and discount rates are as follows:

	*October 31, 2024*
Weighted-average remaining lease terms (in years):
Finance leases		2.5
Operating leases		12.3

Weighted-average discount rates:
Finance leases		6.4	%
Operating leases		10.1	%

Maturities of lease liabilities as of October 31, 2024, are as follows:

		*Operating Leases*			*Finance Leases*
For the six months ending January 31, 2025	$	396		$	9
For the year ended January 31, 2026		2,154			37
For the year ended January 31, 2027		2,148			37
For the year ended January 31, 2028		2,147			9
For the year ended January 31, 2029		1,805			-
For the year ended January 31, 2030		773			-
Thereafter		7,162			-
Total lease payments	$	16,585		$	92

Less: amount representing interest		(8,420	)		(6	)
Total lease liabilities at October 31, 2024	$	8,165		$	86

Rent expense attributable to operating leases was $0.6 million for the three months ended October 31, 2024 and 2023, respectively.

Note 12 - Restricted cash

Restricted cash held by foreign subsidiaries is related to fixed deposits that also serve as security deposits and guarantees:

	*October 31, 2024*		*January 31, 2024*
Cash and cash equivalents	$	13,307	$	5,845
Restricted cash		1,419		1,395
Cash, cash equivalents and restricted cash shown in the statement of cash flows	$	14,726	$	7,240

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Note 13 - Fair value

The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered reasonable estimates of fair value due to their short-term nature. The carrying amount of the Company's short-term debt, revolving lines of credit and long-term debt approximate fair value because the majority of the amounts outstanding accrue interest at variable market rates.

Note 14 - Recent accounting pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The standard update requires additional disclosures, including further details about segment expenses regarding a public entity's reportable segments on an annual and interim basis. The additional segment disclosures are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is still evaluating the impact of these updated disclosure requirements on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Pursuant to this standard update, companies are required to provide additional information which is primarily attributable to the rate reconciliation and income taxes paid. The new income tax disclosures are effective for fiscal years beginning after December 15, 2024. The Company is still evaluating this standard update but does not expect it to have a material impact on its financial position or results of operations.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In accordance with this standard update, companies are required to disclose specified information about certain costs and expenses in the notes to the financial statements at each interim and annual reporting period. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

Note 15 - Treasury stock

The repurchase program approved on October 4, 2021 authorized the Company to use up to $3.0 million for the purchase of its outstanding shares of common stock. Stock repurchases were permitted to be executed through open market or privately negotiated transactions, depending upon current market conditions and other factors. On December 7, 2022 the Board of Directors authorized the use of $1.0 million remaining under the share repurchase program previously approved on October 4, 2021 that expired on October 3, 2022. During the twelve months ended January 31, 2024, the Company used the remaining $1.0 million authorized to repurchase its outstanding shares of common stock. Accordingly, there was no repurchase activity with respect to the Company's shares of common stock during the three and nine months ended October 31, 2024.

On August 29, 2024, the Company retired all remaining treasury stock previously repurchased under the stock repurchase program. The retirement was recorded as a reduction to common stock based on the par value of the shares, and the excess over par value was recorded as a decrease in retained earnings in accordance with ASC 505-30, Equity-Treasury Stock.

Note 16 - Noncontrolling interest

On June 1, 2023, the Company closed on its formation of a joint venture ("the JV", and the agreement governing the JV, "the JV Agreement") with Gulf Insulation Group ("GIG"), a leading provider of pre-insulated piping systems and pipe fabrication, in which the Company acquired a 60% controlling financial interest and contributed assets consisting of a building and equipment. The JV is a limited liability company named Perma Pipe Gulf Arabia Industry and is a closed joint stock company established under the laws of the Kingdom of Saudi Arabia. The JV's capital is comprised of ordinary shares with 60% owned by the Company and remaining 40% owned by GIG. The Company expects this collaborative business arrangement to result in expanding its market presence in Saudi Arabia, Kuwait, and Bahrain. The primary business activities of the JV include the manufacture and sale of the pre-insulated piping systems and pipe coating services.

The balance sheets and operating activities of this investment are included in the Company's consolidated financial statements. The carrying amount of the assets and liabilities of the JV that are consolidated by the Company totaled $31.8 million and $18.5 million, respectively, as of October 31, 2024.

The Company adjusts net income in the consolidated statements of operations to exclude the proportionate share of results that is attributable to the non-controlling interest. Additionally, the Company presents the proportionate share that is attributable to the non-controlling interest as temporary equity within the consolidated balance sheets. This temporary equity presentation is the result of the non-controlling interest being subject to certain redemption rights that are not entirely within the Company's control. Due to these redemption rights, at each balance sheet date, the Company is required to adjust the carrying value attributable to the non-controlling interest to fair value, which is limited to its original carrying value at the formation of the business arrangement. Adjustments made to reflect the change in the value of the redeemable non-controlling interest are offset against permanent equity within the Company's consolidated balance sheets.

Net income attributable to GIG was $1.0 million and $1.4 million for the three months ended October 31, 2024 and 2023, respectively. Net income attributable to GIG was $2.3 million and $1.6 million for the nine months ended October 31, 2024 and 2023, respectively. The proportionate share of net income was accounted for as a reduction in deriving net income attributable to common stock in the Company's consolidated statements of operations.

The non-controlling interest as measured at fair value was $9.0 million and $6.3 million at October 31, 2024 and January 31, 2024, respectively. The change in non-controlling interest consists of $2.3 million in current year net income attributable to non-controlling interest, and approximately $0.4 million as an adjustment to the carrying value of the redeemable non-controlling interest pertaining to the business arrangement. In addition, there were no dividends or other forms of distributions from non-controlling interest for the period ended October 31, 2024 and January 31, 2024, respectively.

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Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")

The statements contained in this MD&A and other information contained elsewhere in this quarterly report, which can be identified by the use of forward-looking terminology such as "may," "will," "expect," "continue," "remains," "intend," "aim," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely" and "probable" or the negative thereof or other variations thereon or comparable terminology, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected as a result of many factors, including, but not limited to, those under the heading Item 1A. Risk Factors included in the Company's latest Annual Report on Form 10-K. The Company's fiscal year ends on January 31. Years and balances described as 2024 and 2023 are for the fiscal year ending January 31, 2025 and the fiscal year ended January 31, 2024, respectively.

This MD&A should be read in conjunction with the Company’s consolidated financial statements, including the notes thereto, contained elsewhere in this report. Percentages set forth below in this MD&A have been rounded to the nearest percentage point.

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CONSOLIDATED RESULTS OF OPERATIONS

(In thousands, except per share data, or unless otherwise specified)

(Unaudited)

The Company is engaged in the manufacture and sale of products in one reportable segment. Since the Company focuses on discrete projects, operating results can be significantly impacted as a result of large variations in the level of project activity in reporting periods.

	Three Months Ended October 31,															Nine Months Ended October 31,
	2024						2023						Change favorable (unfavorable)			2024						2023						Change favorable (unfavorable)
	Amount			Percent of Net Sales			Amount			Percent of Net Sales			Amount			Amount			Percent of Net Sales			Amount			Percent of Net Sales			Amount
Net sales	$	41,563					$	45,690					$	(4,127	)	$	113,397					$	110,489					$	2,908

Gross profit		14,086			34	%		13,184			29	%		902			38,077			34	%		29,424			27	%		8,653

General and administrative expenses		7,330			18	%		5,674			12	%		(1,656	)		19,457			17	%		16,417			15	%		(3,040	)

Selling expense		1,170			3	%		1,471			3	%		301			3,757			3	%		4,201			4	%		444

Interest expense		468						640						172			1,489						1,788						299

Other expense		(50	)					(502	)					452			(156	)					(350	)					194

Income before income taxes		5,068						4,897						171			13,218						6,668						6,550

Income tax expense		1,615						1,533						(82	)		3,692						3,257						(435	)

Net income (loss)		3,453						3,364						89			9,526						3,411						6,115

Less: Net income attributable to non-controlling interest		962						1,429						467			2,303						1,577						(726	)

Net income (loss) attributable to common stock		2,491						1,935						556			7,223						1,834						5,389

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Three months ended October 31, 2024 vs. Three months ended October 31, 2023

Net sales:

Net sales were $ 41.6 million and $ 45.7 million in the three months ended October 31, 2024 and 2023, respectively. The decrease o f $4.1 million, or 9%, was a result of the timing of project execution.

Gross profit:

Gross profit was $14.1 million, or 34% of net sales, and $13.2 million, or 29% of net sales, in the three months ended October 31, 2024 and 2023, respectively. The increase of $0.9 million, was driven primarily by better margins due to product mix.

General and administrative expenses:

General and administrative expenses were $7.3 million and $5.7 million in the three months ended October 31, 2024 and 2023, respectively. The increase of $1.6 million, was due to higher payroll expenses and professional fees in the quarter.

Selling expenses:

Selling expenses were $ 1.2 million and $ 1.5 million in the three months ended October 31, 2024 and 2023, respectively. The decrease of $ 0.3 million, was due to lower payroll expense in the quarter.

Interest expense:

Net interest expense remained consistent and was $0.5 million and $0.6 million in the three months ended October 31, 2024 and 2023, respectively.

Other expense:

Other expense was $0.1 million and $0.5 million in the three months ended October 31, 2024 and 2023, respectively. The decrease of $0.4 million, was due primarily to exchange rate fluctuations in foreign currency transactions.

Income tax expense:

The Company's ETR was 32% and 31% in the three months ended October 31, 2024 and 2023, respectively. The change in the ETR is due to the ability to recognize tax benefits on losses in the United States in the current year whereas the prior year had a full valuation allowance and changes to the mix of income and loss in various jurisdictions.

For further information, see Note 6 - Income taxes, in the Notes to Consolidated Financial Statements.

Net income attributable to common stock:

Net income attributable to common stock was $2.5 million and $1.9 million in the three months ended October 31, 2024 and 2023, respectively. The increase of $0.6 million, was mainly due to better project execution in the quarter.

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Nine months ended October 31, 2024 vs. Nine months ended October 31, 2023

Net sales:

Net sales were $ 113.4 million and $ 110.5 million in the nine months ended October 31, 2024 and 2023, respectively. The increase o f $2.9 million, or 3% , was a result of increased sales volumes in the Middle East.

Gross profit:

Gross profit was $38.1 million, or 34% of net sales, and $29.4 million, or 27% of net sales, in the nine months ended October 31, 2024 and 2023, respectively. The increase of $8.7 million, was driven primarily by better margins due to product mix.

General and administrative expenses:

General and administrative expenses were $19.5 million and $16.4 million in the nine months ended October 31, 2024 and 2023, respectively. The increase of $3.1 million, was due to higher payroll expenses and professional fees.

Selling expenses:

Selling expenses were $ 3.8 million and $ 4.2 million in the nine months ended October 31, 2024 and 2023, respectively. The decrease of $ 0.4 million, was due to lower payroll expenses.

Interest expense:

Net interest expense was $1.5 million and $1.8 million in the nine months ended October 31, 2024 and 2023, respectively. The decrease of $0.3 million, was due primarily to declining interest rates on certain variable rate debt.

Other expense:

Other expense was $0.2 million and $0.4 million in the nine months ended October 31, 2024 and 2023, respectively. The change was due primarily to exchange rate fluctuations in foreign currency transactions.

Income tax expense:

The Company's ETR was 28% and 49% in the nine months ended October 31, 2024 and 2023, respectively. The change in the ETR is due to the ability to recognize tax benefits on losses in the United States in the current year whereas the prior year had a full valuation allowance and changes to the mix of income and loss in various jurisdictions.

For further information, see Note 6 - Income taxes, in the Notes to Consolidated Financial Statements.

Net income attributable to common stock:

Net income attributable to common stock was $7.2 million and $1.8 million in the nine months ended October 31, 2024 and 2023, respectively. The increase of $5.4 million, was mainly due to better project execution during the year.

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Liquidity and capital resources

Cash and cash equivalents as of October 31, 2024 were $13.3 million compared to $5.8 million on January 31, 2024. On October 31, 2024, $0.9 million was held in the United States, and $12.4 million was held at the Company's foreign subsidiaries. The Company's working capital was $50.6 million on October 31, 2024 compared to $41.1 million on January 31, 2024. Of the working capital components, accounts receivable decreased by $6.7 million and cash and cash equivalents increased by $7.5 million as the result of the movements discussed below. As of October 31, 2024, the Company had $3.5 million of borrowing capacity under the Renewed Senior Credit Facility in North America and $8.3 million of borrowing capacity under its foreign revolving credit agreements. The Company had $7.8 million borrowed under the Renewed Senior Credit Facility and $3.2 million borrowed under its foreign revolving credit agreements at October 31, 2024.

Net cash provided by operating activities was $7.9 million and $7.6 million in the nine months ended October 31, 2024 and 2023, respectively. The increase of $0.3 million was primarily attributable to changes in accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts, partially offset by changes to accounts payable.

Net cash used in investing activities in the nine months ended October 31, 2024 and 2023 was $(1.6) million and $(8.2) million, respectively. The decrease of $(6.6) million was due primarily to fewer capital expenditures in the United States and Canada.

Net cash provided by financing activities in the nine months ended October 31, 2024 and 2023 remained consistent and was $1.3 million and $1.2 million, respectively. Debt totaled $27.0 million and $25.7 million as of October 31, 2024 and January 31, 2024, respectively. See Note 10 - Debt, in the Notes to Consolidated Financial Statements for further discussion relating to this topic.

Treasury stock. During the twelve months ended January 31, 2024, the Company used the remaining $1.0 million authorized to repurchase its outstanding shares of common stock. Accordingly, there was no repurchase activity with respect to the Company's shares of common stock during the three and nine months ended October 31, 2024. See Note 15 - Treasury stock, in the Notes to Consolidated Financial Statements for further discussion relating to this topic.

Revolving lines - North America . On September 20, 2018, and as amended, extended, or renewed subsequently thereafter, the Company and certain of its U.S. and Canadian subsidiaries (collectively the “North American Loan Parties”) entered into a Revolving Credit and Security Agreement (the “Credit Agreement”) with PNC Bank, National Association ("PNC"), as administrative agent and lender, providing for a three-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the “Senior Credit Facility”). The Credit Agreement with PNC was subsequently extended on September 17, 2021, providing for a new five-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the "Renewed Senior Credit Facility"). The Renewed Senior Credit Facility matures on September 20, 2026.

As of October 31, 2024, the Company had borrowed an aggregate of $7.8 million at a rate of 9.5% and had $3.5 million available under the Renewed Senior Credit Facility. As of January 31, 2024, the Company had borrowed an aggregate of $5.5 million and had $4.0 million available under the Renewed Senior Credit Facility.

The Company was in compliance with respect to the covenants under the Credit Agreement as of October 31, 2024.

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Revolving lines - foreign . The Company also has credit arrangements used by its Middle Eastern subsidiaries in the U.A.E. , Egypt and Saudi Arabia as discussed further below.

United Arab Emirates

The Company has a revolving line for 8.0 million U.A.E. Dirhams (approximately $ 2.2 million at October 31, 2024 ) from a bank in the U.A.E. As of October 31, 2024 , the facility has an interest rate of approximately 7.7% and expired in July 2024. The facility was subsequently renewed in November 2024 with substantially the same terms and conditions and expires in July 2025. The Company had borrowed an aggregate of $1.1 million as of October 31, 2024 and $0.2 million as of January 31, 2024 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. As of October 31, 2024 and January 31, 2024 , the Company had unused borrowing availability of approximately $1.0 million and $1.9 million, respectively.

The Company has a revolving line for 20.5 million U.A.E. Dirhams (approximately $ 5.6 million at October 31, 2024 ) from a bank in the U.A.E. As of October 31, 2024 , the facility has an interest rate of approximately 8.6% and expired in August 2024. The facility was subsequently renewed in November 2024 with substantially the same terms and conditions, except for the revolving line, which decreased to 17.5 million U.A.E. Dirhams (approximately $4.8 million at October 31, 2024 ) and expires in August 2025. The reduction in the revolving line was due primarily to the removal of 2 million U.A.E. Dirhams (approximately $0.5 million) in connection with a capital expenditure component that is no longer applicable to the revolving credit facility and, to a lesser extent, 1 million U.A.E. Dirhams (approximately $0.3 million) due to a decrease in revolver capacity. The Company had borrowed an aggregate of $0.7 million as of October 31, 2024 and $0.1 million as of January 31, 2024 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The Company had unused borrowing availability of approximately $1.0 million as of October 31, 2024 and January 31, 2024 , respectively.

Egypt

In June 2021, and as renewed or amended subsequently thereafter, the Company's Egyptian subsidiary entered into a credit arrangement with a bank in Egypt for a revolving line of 100.0 million Egyptian Pounds (approximately $ 2.0 million at October 31, 2024 ). This credit arrangement is in the form of project financing, for which the line is secured by certain assets (such as accounts receivable) of the Company's Egyptian subsidiary. Among other covenants, the credit arrangement established a maximum leverage ratio allowable and restricted the Company's Egyptian subsidiary's ability to undertake any additional debt. As of October 31, 2024 , the facility has an interest rate of approximately 20.8% and expired in November 2024. The Company has started the process to renew and extend this credit agreement and the credit facility has continued without interruption or penalty. As of October 31, 2024 , the Company had an immaterial amount outstanding with respect to this credit arrangement, and approximately $1.4 million outstanding at January 31, 2024 , which is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. Further, as of October 31, 2024 and January 31, 2024 , the Company had unused borrowing capacity of $2.0 million and $3.2 million, respectively.

In December 2021, the Company entered into a credit arrangement for project financing with a bank in Egypt for 28.2 million Egyptian Pounds. As this project has progressed and the Company has made collections, the facility has decreased to a current amount of 2.1 million Egyptian Pounds (approximately $0.1 million at October 31, 2024 ). This credit arrangement is in the form of project financing at rates competitive in Egypt. The line is secured by the contract for a project being financed by the Company's Egyptian subsidiary. The facility has an interest rate of approximately 11.0% and, as of November 2022, is no longer available for borrowings by the Company. The facility will expire in connection with final customer balance collections and the completion of the project. The Company had approximately $0.1 million outstanding as of October 31, 2024 and January 31, 2024 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets.

Saudi Arabia

In March 2022, the Company's Saudi Arabian subsidiary entered into a credit arrangement with a bank in Saudi Arabia for a revolving line of 37.0 million Saudi Riyals (approximately $ 9.9 million at October 31, 2024 ). This credit arrangement is in the form of project financing at rates competitive in Saudi Arabia. The line is secured by certain assets (such as accounts receivable) of the Company's Saudi Arabian subsidiary. The facility was renewed in May 2024 with substantially the same terms and conditions and expires in May 2025. As of October 31, 2024 , the facility has an interest rate of approximately 9.5% . The Company had borrowed an aggregate of $1.3 million and $3.2 million as of October 31, 2024 and January 31, 2024 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The unused borrowing availability attributable to this credit arrangement at October 31, 2024 and January 31, 2024 , was $3.3 million and $6.1 million, respectively.

These credit arrangements are in the form of overdraft facilities and project financing at rates competitive in the countries in which the Company operates. The lines are secured by certain equipment, certain assets (such as accounts receivable and inventory), and in some cases, a guarantee by the Company. Some credit arrangement covenants require a minimum tangible net worth to be maintained, including maintaining certain levels of intercompany subordinated debt. In addition, some of the revolving credit facilities restrict payment of dividends or undertaking of additional debt. The Company guarantees only a portion of the subsidiaries' debt, including foreign debt. The amount of foreign subsidiary debt guaranteed by the Company was approxim ately $1.1 million and $0.1 million at October 31, 2024 and January 31, 2024, respectively.

The Company was in compliance with respect to the covenants under the credit arrangements in the U.A.E., Egypt, and Saudi Arabia as of October 31, 2024, with the exception of an arrangement that has expired and has not yet been renewed. Although a certain arrangement has expired and the borrowings could be required to be repaid immediately by the bank, the Company is in regular communication with the bank throughout the renewal process and the arrangement has continued without interruption or penalty. On October 31, 2024, interest rates were based on (i) the Emirates Inter Bank Offered Rate plus 3.0% to 3.5% per annum for the U.A.E. credit arrangements, two of which have a minimum interest rate of 4.5% per annum; (ii) either the Central Bank of Egypt corporate loan rate plus 1.5% to 3.5% per annum or the stated interest rate in the agreements for the Egypt credit arrangements; and (iii) the Saudi Inter-Bank Offered Rate plus 3.5% for the Saudi Arabia credit arrangement. Based on these base rates, as of October 31, 2024, the Company's interest rates ranged from 7.7% to 20.8%, with a weighted average rate of 10.6%, and the Company had facility limits totaling $19.7 million under these credit arrangements. As of October 31, 2024 , $11.0 million o f availability was used to support letters of credit to guarantee amounts committed for inventory purchases and for performance guarantees. Additionally, as of October 31, 2024 , the Company had borrow ed $3.2 million and had an additional $8.3 million of borrowing remaining available under the foreign revolving credit arrangements. The foreign revolving lines balances were included as a component of current maturities of long-term debt in the Company's consolidated balance sheets as of October 31, 2024 and January 31, 2024.

In June 2023, the Company assumed a promissory note of approximately $2.8 million in connection with the formation of the joint venture with Gulf Insulation Group (see Note 16). In accordance with the promissory note, all principal is due and payable on the maturity date of April 9, 2026, with the option to prepay, in whole or in part, at any time prior to the maturity date, without premium or penalty.

Mortgages. On July 28, 2016, the Company entered into a mortgage agreement secured by the Company's manufacturing facility located in Alberta, Canada that matures on December 23, 2042. As of October 31, 2024, the remaining balance on the mortgage in Canada is approximately CAD 5.8 million (approximately $ 4.2 million at October 31, 2024). The interest rate is variable, and was 7.8% at October 31, 2024. The principal balance is included as a component of long-term debt, less current maturities in the Company's consolidated balance sheets and is presented net of issuance costs of $0.1 million as of October 31, 2024 and January 31, 2024, respectively.

Finance obligation - buildings and land. On April 14, 2021, the Company entered into a purchase and sale agreement, pursuant to which the Company sold its land and buildings in Lebanon, Tennessee (the "Property") for $10.4 million. The transaction generated net cash proceeds of $9.1 million. Concurrently with the sale, the Company paid off the approximately $0.9 million mortgage note on the Property to its lender. The Company used the remaining proceeds to repay its borrowings under the Senior Credit Facility, for strategic investments, and for general corporate needs. Concurrent with the sale of the Property, the Company entered into a fifteen-year lease agreement (the “Lease Agreement”), whereby the Company leases back the Property at an annual rental rate of approximately $0.8 million, subject to annual rent increases of 2.0%. Under the Lease Agreement, the Company has four consecutive options to extend the term of the lease by five years for each such option.

In accordance with ASC 842, Leases, this transaction was recorded as a failed sale and leaseback as the present value of lease payments exceeded substantially the fair value of the underlying assets. The Company utilized an incremental borrowing rate of 8.0% to determine the finance obligation to record for the amounts received and will continue to depreciate the assets. The current portion of the finance obligation of $0.2 million is recognized in current maturities of long-term debt and the long-term portion of $8.9 million is recognized in long-term finance obligation on the Company's consolidated balance sheets as of October 31, 2024 . The net carrying amount of the financial liability and remaining assets will be zero at the end of the lease term.

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Accounts receivable:

In 2015, the Company completed a project in the Middle East with billings in the aggregate amount of approximately $41.9 million. The system has not yet been commissioned by the customer. Nevertheless, the Company has received approximately $ 40.1 million as of October 31, 2024, with a remaining balance due in the amount of $ 1.8 million, all of which pertains to retention clauses within the agreements with the Company's customer, and which become payable by the customer when this project is fully tested and commissioned. Of this amount, $ 1.3 million is classified in other long-term assets on the Company's consolidated balance sheets.

The Company has been actively involved in ongoing efforts to collect this outstanding balance. The Company continues to engage with the customer to ensure full payment of the open balances, and during the nine months ended October 31, 2024, and at various times throughout 2023, the Company received partial payments to settle $ 0.3 million and $ 0.6 million, respectively, of the customer's outstanding balances. Further, the Company has been engaged by the customer to perform additional work in 2024 under customary trade terms that support the continued cooperation between the Company and the customer. As a result, the Company did not reserve any allowance against the remaining outstanding balances as of October 31, 2024. However, if the Company's efforts to collect on this account are not successful, the Company may recognize an allowance for all, or substantially all, of any such then uncollected amounts.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical accounting policies are described in Item 7. MD&A and in the Notes to the Consolidated Financial Statements for the year ended January 31, 2024 contained in the Company's latest Annual Report on Form 10-K. Any new accounting policies or updates to existing accounting policies as a result of new accounting pronouncements have been discussed in the Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q. The application of critical accounting policies may require management to make assumptions, judgments and estimates about the amounts reflected in the Consolidated Financial Statements. Management uses historical experience and all available information to make these estimates and judgments, and different amounts could be reported using different assumptions and estimates.

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Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of October 31, 2024. This evaluation included consideration of the controls, processes and procedures that are designed to ensure that information required to be disclosed by the Company in the reports the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were not effective because of the material weaknesses in internal control over financial reporting, as described below.

Material Weaknesses in Internal Control Over Financial Reporting

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

There are material weaknesses in the Company's internal control over financial reporting, as follows.

We did not design and maintain effective controls in response to the risks of material misstatement. Specifically, changes to existing controls or the implementation of new controls have not been sufficient to respond to changes to the risks of material misstatement in financial reporting. This contributed to the following material weaknesses:

We did not design and maintain effective controls over information technology general controls ("ITGC"), specifically related to the policies and procedures over the timely review of security management and monitoring, user access and security administration, password control, administrative access, program change management, data security and back up, review of third-party SOC1 reports, and related management's review of the completeness and accuracy of certain system-generated reports. These material weaknesses did not result in a misstatement to the Company's annual or interim financial statements.

Additionally, we did not design and maintain effective controls over certain controls over financial reporting relating to the review and approval of manual journal entries, review of the financial close process, including the statement of cash flows, and review of certain financial policies and procedures and respective HR policies. We also did not design and maintain effective controls at operating locations in the Middle East and North Africa ("MENA"), including not maintaining sufficient documentation to support an evaluation that controls over business processes were designed and operating effectively. These material weaknesses resulted in adjustments to property, plant, and equipment, net of accumulated depreciation, trade accounts payable, trade accounts receivable, and the statement of cash flows. These adjustments resulted in a revision of the unaudited consolidated financial statements as of and for the period ended April 30, 2024, a restatement as of and for the period ended July 31, 2024 and material adjustments as of and for the period ended October 31, 2024. Additionally, there is a reasonable possibility that each of these material weaknesses could result in material misstatements of substantially all accounts and disclosures in the Company's annual or interim financial statements that would not be prevented or detected on a timely basis.

Remediation Plan for the Material Weaknesses in Internal Control over Financial Reporting

To address these matters, the Company has begun implementing its remediation plan. Our ongoing remediation plans include the following:

(i) designing and implementing controls to identify and evaluate changes in our business and the impact on our internal control over financial reporting; (ii) addressing the identified issues with control owners, including Company leadership and IT personnel; (iii) engaging outside consultants with expertise relating to ITGCs to document processes, assist in addressing the design and operating ITGCs controls, monitoring and testing reviews focusing on systems supporting our financial reporting process (iv) developing and maintaining controls and documentation evidencing those controls underlying ITGCs for knowledge transfer and function changes, including access and program control and change management, data security and back up, reviewing third party SOC1 reports, and reviewing the completeness and accuracy of certain system-generated reports;; and (v) outsourcing certain functions to third-party providers, specifically relating to servers and firewalls, and managed detection and response.

Our remediation plans related to entity level controls, financial reporting controls, and business process controls include:

(i) enhancing the design of controls for the review of and posting of a complete set of journal entries; (ii) evaluating and updating documented formal accounting policies, financial reporting, HR, and financial processes; and overall internal control procedures; and (iii) updating the design of controls for the preparation and review of the statement of cash flows.

Our remediation plans related to our MENA locations include: (i) addressing issues with control owners, including company leadership; (ii) evaluating and updating the Company's evidence of internal control policies and procedures as needed and providing necessary guidance to applicable locations; (iii) assessing the adequacy and determine whether enhancements are needed to the design of corporate and / or operating locations business process controls; and (iv) augmenting our internal audit function by hiring an additional resource to assist in overseeing the remediation process, including updating policies and procedures, and implementing internal controls; and (v) engaging outside consultants to conduct training sessions.

The Company anticipates the actions described above and resulting improvements in controls will strengthen the Company's processes, procedures and will address the related material weaknesses described above. However, the material weaknesses cannot be considered fully remediated until the necessary controls have been appropriately designed and implemented. The remediation processes and procedures will also need to be in operation for a period of time and management conclude through testing, that these controls are operating effectively.

Change in Internal Control over Financial Reporting. There were no changes to our internal control over financial reporting which were identified in connection with the evaluation required by Rules 13a-15(d) or 15d-15(d) under the Exchange Act during the fiscal quarter ended July 31, 2024, 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 5.

Other Information

During the three months ended October 31, 2024, none of the Company's directors or executive officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement" (as those terms are defined in Regulation S-K, Item 408).

Item 6.

Exhibits

3.1	Certificate of Incorporation of Perma-Pipe International Holdings, Inc. [Incorporated by reference to Exhibit 3.3 to Registration Statement No. 33-70298]
3.2	Certificate of Amendment to Certificate of Incorporation of Perma-Pipe International Holdings, Inc. [Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on March 20, 2017]
3.3	Fifth Amended and Restated By-Laws of Perma-Pipe International Holdings, Inc. [Incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed on May 6, 2019]
31.1	Rule 13a - 14(a)/15d - 14(a) Certifications (1) Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Rule 13a - 14(a)/15d - 14(a) Certifications (2) Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Section 1350 Certifications (Chief Executive Officer and Chief Financial Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
101.INS	Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation
101.DEF	Inline XBRL Taxonomy Extension Definition
101.LAB	Inline XBRL Taxonomy Extension Labels
101.PRE	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Management contracts and compensatory plans or agreements

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Perma-Pipe International Holdings, Inc.


Date:	December 23, 2024	By: /s/ David J. Mansfield
		David J. Mansfield
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	December 23, 2024	By: /s/ Matthew E. Lewicki
		Matthew E. Lewicki
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

Exhibit 31.1

I, David J. Mansfield, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Perma-Pipe International Holdings, 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;

The registrant’s other certifying officer 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 13a-15(f) and 15d-15(f)) for the registrant and have:

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;

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;

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

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 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):

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

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:

December 23, 2024

/s/ David J. Mansfield

David J. Mansfield

President and Chief Executive Officer

(Principal Executive Officer)

Exhibit 31.2

I, Matthew E. Lewicki, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Perma-Pipe International Holdings, 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;

5.	The registrant’s other certifying officer 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):

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:

December 23, 2024

/s/ Matthew E. Lewicki

Matthew E. Lewicki

Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

Exhibit 32

Certification of Principal Executive Officers

Pursuant to 18 U.S.C. 1350

(Section 906 of the Sarbanes-Oxley Act of 2002)

The undersigned, in their capacities as Chief Executive Officer and Chief Financial Officer of Perma-Pipe International Holdings, Inc. (the “Registrant") certify that, to the best of their knowledge, based upon a review of the Quarterly Report on Form 10-Q for the period ended October 31, 2024 of the Registrant, (the “Report”):

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ David J. Mansfield

David J. Mansfield

President and Chief Executive Officer

(Principal Executive Officer)

/s/ Matthew E. Lewicki

Matthew E. Lewicki

Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

December 23, 2024

A signed original of this written statement required by Section 906 has been provided by Perma-Pipe International Holdings, Inc. and will be retained by Perma-Pipe International Holdings, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Oct. 31, 2024	Dec. 23, 2024
Document Information [Line Items]
Entity Central Index Key	0000914122
Entity Registrant Name	Perma-Pipe International Holdings, Inc.
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2025
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2024
Document Transition Report	false
Entity File Number	001-32530
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3922969
Entity Address, Address Line One	24900 Pitkin Road, Suite 309
Entity Address, City or Town	Spring
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77386
City Area Code	847
Local Phone Number	966-1000
Title of 12(b) Security	Common Stock, $.01 par value per share
Trading Symbol	PPIH
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		7,982,568

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Oct. 31, 2024	Oct. 31, 2023
Net sales	$ 41,563	$ 45,690	$ 113,397	$ 110,489
Cost of sales	27,477	32,506	75,320	81,065
Gross profit	14,086	13,184	38,077	29,424
Operating expenses
General and administrative expenses	7,330	5,674	19,457	16,417
Selling expenses	1,170	1,471	3,757	4,201
Total operating expenses	8,500	7,145	23,214	20,618
Income from operations	5,586	6,039	14,863	8,806
Interest expense	468	640	1,489	1,788
Other expense	(50)	(502)	(156)	(350)
Income before income taxes	5,068	4,897	13,218	6,668
Income tax expense	1,615	1,533	3,692	3,257
Net income	3,453	3,364	9,526	3,411
Less: Net income attributable to non-controlling interest	962	1,429	2,303	1,577
Net income attributable to common stock	$ 2,491	$ 1,935	$ 7,223	$ 1,834
Weighted average common shares outstanding
Basic (in shares)	7,981	7,955	7,947	7,996
Diluted (in shares)	8,027	8,021	7,991	8,106
Earnings per share attributable to common stock
Basic (in dollars per share)	$ 0.31	$ 0.24	$ 0.91	$ 0.23
Diluted (in dollars per share)	$ 0.31	$ 0.24	$ 0.9	$ 0.23

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Oct. 31, 2024	Oct. 31, 2023
Net income	$ 3,453	$ 3,364	$ 9,526	$ 3,411
Other comprehensive income (loss)
Foreign currency translation adjustment	(185)	(2,035)	(1,792)	(2,133)
Comprehensive income	3,268	1,329	7,734	1,278
Less: Comprehensive income attributable to non-controlling interests	962	1,429	2,303	1,577
Total comprehensive income (loss) attributable to common stock	$ 2,306	$ (100)	$ 5,431	$ (299)

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Oct. 31, 2024	Jan. 31, 2024
Current assets
Cash and cash equivalents	$ 13,307	$ 5,845
Restricted cash	1,419	1,395
Trade accounts receivable, less allowance for credit losses of $704 at October 31, 2024 and $699 at January 31, 2024	39,904	46,646
Inventories	15,957	15,541
Prepaid expenses and other current assets	11,635	9,697
Unbilled accounts receivable	19,684	16,597
Costs and estimated earnings in excess of billings on uncompleted contracts	2,499	3,097
Total current assets	104,405	98,818
Long-term assets
Property, plant and equipment, net of accumulated depreciation	35,652	37,620
Operating lease right-of-use asset	7,403	6,467
Deferred tax assets	7,221	7,919
Goodwill	2,141	2,222
Other long-term assets	3,927	2,665
Total long-term assets	56,344	56,893
Total assets	160,749	155,711
Current liabilities
Trade accounts payable	20,788	25,323
Accrued compensation and payroll taxes	1,280	1,214
Commissions and management incentives payable	5,262	4,523
Revolving line - North America	7,766	5,519
Current maturities of long-term debt	3,682	4,071
Customers' deposits	3,243	4,264
Operating lease liability short-term	1,061	914
Other accrued liabilities	6,634	9,039
Billings in excess of costs and estimated earnings on uncompleted contracts	1,350	495
Income taxes payable	2,728	2,380
Total current liabilities	53,794	57,742
Long-term liabilities
Long-term debt, less current maturities	8,855	9,035
Long-term finance obligation	3,883	4,229
Deferred compensation liabilities	1,407	1,212
Deferred tax liabilities	1,325	1,217
Operating lease liability long-term	7,104	6,270
Other long-term liabilities	1,465	1,275
Total long-term liabilities	26,792	25,991
Non-controlling interest	8,952	6,266
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value, authorized 50,000 shares; 7,983 issued and outstanding at October 31, 2024 and 8,017 at January 31, 2024	80	80
Additional paid-in capital	60,130	60,063
Treasury stock, no shares at October 31, 2024 and 112 shares at January 31, 2024	0	(968)
Retained earnings	18,344	12,088
Accumulated other comprehensive loss	(7,343)	(5,551)
Total stockholders' equity	71,211	65,712
Total liabilities and stockholders' equity	160,749	155,711
Related Party [Member]
Long-term assets
Total assets	31,800
Long-term liabilities
Loan payable to GIG	$ 2,753	$ 2,753

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Oct. 31, 2024	Jan. 31, 2024
Allowance for doubtful accounts	$ 704	$ 699
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	50,000	50,000
Common stock, issued (in shares)	7,983	8,017
Common stock, outstanding (in shares)	7,983	8,017
Treasury stock (in shares)	0	112

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member] Revision of Prior Period, Adjustment [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Jan. 31, 2023		$ 80	$ 62,562	$ 1,617	$ (26)	$ (6,449)	$ 57,784
Net income attributable to common stock		0	0	(1,123)	0	0	(1,123)
Stock-based compensation expense		0	229	0	0	0	229
Foreign currency translation adjustment		0	0	0	0	(437)	(437)
Balance at Apr. 30, 2023		$ 80	62,791	494	(26)	(6,886)	56,453
Balances (in shares) at Jan. 31, 2023	(56,947)	8,007,002
Balance at Jan. 31, 2023		$ 80	62,562	1,617	(26)	(6,449)	57,784
Net income attributable to common stock							1,834
Foreign currency translation adjustment							(2,133)
Balance at Oct. 31, 2023		$ 80	62,991	3,451	(967)	(8,582)	56,973
Balances (in shares) at Jan. 31, 2023	(56,947)	8,007,002
Treasury stock retired (in shares)		0
Shares issued, net of shares used for tax withholding (in shares)		66,726
Balances (in shares) at Oct. 31, 2023		8,016,781
Balance at Apr. 30, 2023		$ 80	62,791	494	(26)	(6,886)	56,453
Net income attributable to common stock		0	0	1,022	0	0	1,022
Common stock issued under stock plans, net of shares used for tax withholding		0	(274)	0	0	0	(274)
Stock-based compensation expense		0	245	0	0	0	245
Foreign currency translation adjustment		0	0	0	0	339	339
Repurchase of common stock		1
Repurchase of common stock			0	0	(312)	0	(311)
Balance at Jul. 31, 2023		81	62,762	1,516	(338)	(6,547)	57,474
Net income attributable to common stock		0	0	1,935	0	0	1,935
Stock-based compensation expense		0	229	0	0	0	229
Foreign currency translation adjustment		0	0	0	0	(2,035)	(2,035)
Repurchase of common stock		(1)
Repurchase of common stock			0	0	(629)	0	(630)
Balance at Oct. 31, 2023		$ 80	62,991	3,451	(967)	(8,582)	56,973
Balances (in shares) at Oct. 31, 2023		8,016,781
Balance at Jan. 31, 2024		$ 80	60,063	12,088	(968)	(5,551)	65,712
Net income attributable to common stock		0	0	1,443	0	0	1,443
Common stock issued under stock plans, net of shares used for tax withholding		0	8	0	0	0	8
Stock-based compensation expense		0	220	0	0	0	220
Amount attributable to non-controlling interest		0	(421)	0	0	0	(421)
Foreign currency translation adjustment		0	0	0	0	(1,415)	(1,415)
Balance at Apr. 30, 2024		$ 80	59,870	13,531	(968)	(6,966)	65,547
Balances (in shares) at Jan. 31, 2024	0	8,016,781
Balance at Jan. 31, 2024		$ 80	60,063	12,088	(968)	(5,551)	65,712
Net income attributable to common stock							7,223
Foreign currency translation adjustment							(1,792)
Balance at Oct. 31, 2024		$ 80	60,130	18,344	0	(7,343)	71,211
Balances (in shares) at Jan. 31, 2024	0	8,016,781
Treasury stock retired (in shares)		(112,015)
Shares issued, net of shares used for tax withholding (in shares)		77,802
Balances (in shares) at Oct. 31, 2024		7,982,568
Balance at Apr. 30, 2024		$ 80	59,870	13,531	(968)	(6,966)	65,547
Net income attributable to common stock		0	0	3,289	0	0	3,289
Common stock issued under stock plans, net of shares used for tax withholding		1	(210)	0	0	0	(209)
Stock-based compensation expense		0	177	0	0	0	177
Amount attributable to non-controlling interest		0	(29)	0	0	0	(29)
Foreign currency translation adjustment		0	0	0	0	(192)	(192)
Balance at Jul. 31, 2024		81	59,808	16,820	(968)	(7,158)	68,583
Net income attributable to common stock		0	0	2,491	0	0	2,491
Common stock issued under stock plans, net of shares used for tax withholding		0	23	0	0	0	23
Stock-based compensation expense		0	232	0	0	0	232
Amount attributable to non-controlling interest		0	67	0	0	0	67
Foreign currency translation adjustment		0	0	0	0	(185)	(185)
Retirement of treasury stock		(1)	0	(967)	968	0	0
Balance at Oct. 31, 2024		$ 80	$ 60,130	$ 18,344	$ 0	$ (7,343)	$ 71,211
Balances (in shares) at Oct. 31, 2024		7,982,568

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Operating activities
Net income	$ 9,526	$ 3,411
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	2,687	2,774
Deferred tax expense	1,019	145
Stock-based compensation expense	629	686
Provision on uncollectible accounts	83	(37)
Loss (gain) from disposal of fixed assets	130	(13)
Changes in operating assets and liabilities
Accounts receivable	6,047	(5,377)
Inventories	(970)	(1,426)
Costs and estimated earnings in excess of billings on uncompleted contracts	1,452	(175)
Accounts payable	(3,954)	9,346
Accrued compensation and payroll taxes	(124)	1,167
Customers' deposits	(894)	1,272
Income taxes payable	(904)	327
Prepaid expenses and other current assets	(952)	205
Other assets and liabilities	(2,161)	(1,912)
Net cash provided by operating activities	7,906	7,617
Investing activities
Capital expenditures	(1,555)	(8,204)
Proceeds from insurance recovery for property and equipment	0	5
Net cash used in investing activities	(1,555)	(8,199)
Financing activities
Proceeds from revolving credit lines	57,637	120,467
Payments of debt on revolving credit lines	(55,765)	(117,419)
Payments of other debt	(174)	(179)
Decrease in drafts payable	(19)	(199)
Payments on finance lease obligations	(23)	(176)
Repurchase of common stock	0	(941)
Stock options exercised and taxes paid related to restricted shares vested	(178)	(273)
Net cash provided by financing activities	1,340	1,196
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(205)	1
Net increase in cash, cash equivalents and restricted cash	7,486	615
Cash, cash equivalents and restricted cash - beginning of period	7,240	6,793
Cash, cash equivalents and restricted cash - end of period	14,726	7,408
Supplemental cash flow information
Cash interest paid	1,456	1,754
Cash income taxes paid	3,297	2,546
Fixed assets acquired from non affiliates - non-cash	0	4,357
Finance Lease Obligations [Member]
Financing activities
Payments on finance lease obligations	(23)	(176)
Land and Buildings in Lebanon, Tennessee [Member]
Financing activities
Payments of principal on finance obligation	(138)	(84)
Unbilled Revenues [Member]
Changes in operating assets and liabilities
Unbilled accounts receivable	$ (3,708)	$ (2,776)

Note 1 - Basis of Presentation

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 - Basis of presentation

Revision of Previously Issued Financial Statements

The following tables summarize the impact of this correction as of and for the periods presented:

	*April 30, 2024*
Consolidated Balance Sheet	*As Reported*		*Adjustment*			*As Revised*
Property, plant and equipment, net of accumulated depreciation	$	38,211	$	(1,423	)	$	36,788
Total assets	$	157,163	$	(1,423	)	$	155,740

Trade accounts payable	$	24,672		(1,423	)	$	23,249
Total current liabilities	$	59,410	$	(1,423	)	$	57,987

	*April 30, 2024*
Consolidated Statement of Cash Flows	*As Reported*			*Adjustment*			*As Revised*
Operating activities
Accounts payable		(268	)		(1,423	)		(1,691	)
Net cash provided by operating activities	$	1,350		$	(1,423	)	$	(73	)

Investing activities
Capital expenditures	$	(2,012	)	$	1,423		$	(589	)
Net cash used in investing activities	$	(2,012	)	$	1,423		$	(589	)

Note 2 - Business Segment Reporting

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 2 - Business segment reporting

Note 3 - Accounts Receivable

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 3 - Accounts receivable

Note 4 - Revenue Recognition

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 4 - Revenue recognition

The Company accounts for its revenues under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers.

Revenue from contracts with customers

The Company’s standard revenue transactions are classified into two main categories:

Products - which include cables, leak detection products, heat trace products, material/goods not bundled with piping or flowline systems, and field services not bundled into a project contract.

the customer owns the material that is being coated, so the customer controls the asset and thus the work-in-process; or

Products revenue is recognized when goods are shipped or services are performed (ASC 606-10-25-30).

A breakdown of the Company's revenues by revenue class for the three and nine months ended October 31, 2024 and 2023 are as follows:

	*Three Months Ended October 31,*										*Nine Months Ended October 31,*
	*2024*					*2023*					*2024*					*2023*
	*Sales*		*% of Total*			*Sales*		*% of Total*			*Sales*		*% of Total*			*Sales*		*% of Total*
Products	$	3,622		8	%	$	2,553		5	%	$	9,670		8	%	$	7,541		7	%

Specialty Piping Systems and Coating
Revenue recognized under input method		12,268		30	%		18,641		41	%		35,020		31	%		41,779		38	%
Revenue recognized under output method		25,673		62	%		24,496		54	%		68,707		61	%		61,169		55	%
Total	$	41,563		100	%	$	45,690		100	%	$	113,397		100	%	$	110,489		100	%

Contract assets and liabilities

The following table shows the reconciliation of costs in excess of billings and billings in excess of costs:

	*October 31, 2024*			*January 31, 2024*
Costs incurred on uncompleted contracts	$	15,742		$	21,912
Estimated earnings		11,766			11,270
Earned revenue		27,508			33,182
Less billings to date		26,359			30,580
Costs in excess of billings, net	$	1,149		$	2,602
Balance sheet classification
Contract assets: Costs and estimated earnings in excess of billings on uncompleted contracts	$	2,499		$	3,097
Contract liabilities: Billings in excess of costs and estimated earnings on uncompleted contracts		(1,350	)		(495	)
Costs in excess of billings, net	$	1,149		$	2,602

The Company anticipates that substantially all costs incurred on uncompleted contracts as of October 31, 2024 will be billed and collected within one year.

Unbilled accounts receivable

Note 5 - Inventories

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note 5 - Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method for all inventories.

Inventories consisted of the following:

	*October 31, 2024*		*January 31, 2024*
Raw materials	$	15,033	$	13,787
Work in process		481		611
Finished goods		1,264		2,022
Subtotal		16,778		16,420
Less allowance		821		879
Inventories	$	15,957	$	15,541

Note 6 - Income Taxes

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 6 - Income taxes

Note 7 - Goodwill

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Goodwill Disclosure [Text Block]

Note 7 - Goodwill

All identifiable goodwill as of October 31, 2024 and January 31, 2024, is attributable to the purchase of the remaining 50% interest in Perma-Pipe Canada, Ltd., which occurred in 2016.

The following table provides a reconciliation of changes in the carrying amount of goodwill:

		*January 31, 2024*				*Foreign exchange change effect*				*October 31, 2024*
Goodwill		$	2,222			$	(81	)		$	2,141

There were no triggering events identified during the three and nine months ended October 31, 2024.

Note 8 - Stock-based Compensation

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 8 - Stock-based compensation

Grants were made in connection with the 2024 Plan and the prior incentive plans to employees, officers, and independent directors, as further described below.

Stock-based compensation expense

	*Three Months Ended October 31,*				*Nine Months Ended October 31,*
	*2024*		*2023*		*2024*		*2023*
Restricted stock-based compensation expense	$	232	$	227	$	629	$	686

Stock options

The Company did not grant any stock options during the three or nine months ended October 31, 2024. The following table summarizes the Company's stock option activity:

	*Options*			*Weighted Average Exercise Price (Per share)*		*Weighted Average Remaining Contractual Term (In years)*		*Aggregate Intrinsic Value*
Outstanding at January 31, 2024		22		$	11.15		0.7	$	6
Exercised		(5	)		6.89		-		21
Expired or forfeited		(17	)		12.41		-		-
Outstanding and exercisable at October 31, 2024		-		$	6.85		1.1	$	4

Restricted stock

The following table summarizes the Company's restricted stock activity for the nine months ended October 31, 2024:

	*Restricted Shares*			*Weighted Average Price (Per share)*		*Aggregate Intrinsic Value*
Outstanding at January 31, 2024		222		$	9.33	$	2,078
Granted		108			8.81
Vested and issued		(73	)		9.36
Forfeited or retired for taxes		(27	)		10.29
Outstanding at October 31, 2024		230		$	9.05	$	2,080

Note 9 - Earnings Per Share

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 9 - Earnings per share

	*Three Months Ended October 31,*				*Nine Months Ended October 31,*
	*2024*		*2023*		*2024*		*2023*
Basic weighted average common shares outstanding at October 31, 2024		7,981		7,955		7,947		7,996
Dilutive effect of equity compensation plans		46		66		44		110
Weighted average common shares outstanding assuming full dilution		8,027		8,021		7,991		8,106

Stock options and restricted stock not included in the computation of diluted earnings per share of common stock because the option exercise prices or grant date prices exceeded the average market prices of the common shares		-		122		2		18
Stock options and restricted stock with exercise prices or grant date prices below the average market prices		46		66		44		170

Net income attributable to common stock	$	2,491	$	1,935	$	7,223	$	1,834

Earnings per share attributable to common stock
Basic	$	0.31	$	0.24	$	0.91	$	0.23
Diluted	$	0.31	$	0.24	$	0.90	$	0.23

Note 10 - Debt

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 10 - Debt

Debt totaled $27.0 million and $25.7 million at October 31, 2024 and January 31, 2024, respectively.

The Company was in compliance with respect to the covenants under the Credit Agreement as of October 31, 2024.

Revolving lines - foreign. The Company also has credit arrangements used by its Middle Eastern subsidiaries in the U.A.E., Egypt and Saudi Arabia as discussed further below.

United Arab Emirates

Egypt

Saudi Arabia

Note 11 - Leases

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

Note 11 - Leases

Operating Leases.

Finance Leases.

Supplemental balance sheet information related to leases is as follows:

Operating and Finance leases	*October 31, 2024*			*January 31, 2024*
Finance leases assets:
Property and Equipment - gross	$	935		$	970
Accumulated depreciation and amortization		(615	)		(536	)
Property and Equipment - net	$	320		$	434

Finance lease liabilities:
Finance lease liability short-term	$	33		$	113
Finance lease liability long-term		53			-
Total finance lease liabilities	$	86		$	113

Operating lease assets:
Operating lease ROU assets	$	7,403		$	6,467

Operating lease liabilities:
Operating lease liability short-term	$	1,061		$	914
Operating lease liability long-term		7,104			6,270
Total operating lease liabilities	$	8,165		$	7,184

Total lease costs consist of the following:

		*Three Months Ended October 31,*					*Nine Months Ended October 31,*
Lease costs	*Consolidated Statements of Operations Classification*	*2024*		*2023*			*2024*		*2023*
Finance Lease Costs
Amortization of ROU assets	Cost of sales	$	25	$	37		$	100	$	121
Interest on lease liabilities	Interest expense		1		3			5		7
Operating lease costs	Cost of sales, SG&A expenses		463		564			1,361		1,450
Short-term lease costs (1)	Cost of sales, SG&A expenses		151		99			384		350
Sub-lease income	SG&A expenses		-		(20	)		-		(61	)
*Total Lease costs*		$	640	$	683		$	1,850	$	1,867

(1) Includes variable lease costs, which are not material.

Supplemental cash flow information related to leases is as follows:

	*Nine Months Ended October 31,*
	*2024*		*2023*
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash outflows from finance leases	$	23	$	176
Operating cash outflows from finance leases		5		7
Operating cash outflows from operating leases		1,690		1,399

ROU assets obtained in exchange for new lease obligations:
Finance leases liabilities	$	-	$	139
Operating leases liabilities	$	1,718	$	3,615

Weighted-average lease terms and discount rates are as follows:

	*October 31, 2024*
Weighted-average remaining lease terms (in years):
Finance leases		2.5
Operating leases		12.3

Weighted-average discount rates:
Finance leases		6.4	%
Operating leases		10.1	%

Maturities of lease liabilities as of October 31, 2024, are as follows:

		*Operating Leases*			*Finance Leases*
For the six months ending January 31, 2025	$	396		$	9
For the year ended January 31, 2026		2,154			37
For the year ended January 31, 2027		2,148			37
For the year ended January 31, 2028		2,147			9
For the year ended January 31, 2029		1,805			-
For the year ended January 31, 2030		773			-
Thereafter		7,162			-
Total lease payments	$	16,585		$	92

Less: amount representing interest		(8,420	)		(6	)
Total lease liabilities at October 31, 2024	$	8,165		$	86

Rent expense attributable to operating leases was $0.6 million for the three months ended October 31, 2024 and 2023, respectively.

Note 12 - Restricted Cash

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

Note 12 - Restricted cash

Restricted cash held by foreign subsidiaries is related to fixed deposits that also serve as security deposits and guarantees:

	*October 31, 2024*		*January 31, 2024*
Cash and cash equivalents	$	13,307	$	5,845
Restricted cash		1,419		1,395
Cash, cash equivalents and restricted cash shown in the statement of cash flows	$	14,726	$	7,240

Note 13 - Fair Value

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 13 - Fair value

Note 14 - Recent Accounting Pronouncements

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

Note 14 - Recent accounting pronouncements

Note 15 - Treasury Stock

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Treasury Stock [Text Block]

Note 15 - Treasury stock

Note 16 - Noncontrolling Interest

9 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Noncontrolling Interest Disclosure [Text Block]

Note 16 - Noncontrolling interest

Insider Trading Arrangements

3 Months Ended

9 Months Ended

Oct. 31, 2024

Insider Trading Arr Line Items

Material Terms of Trading Arrangement [Text Block]

Item 5.

Other Information

Rule 10b5-1 Arrangement Adopted [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

Note 1 - Basis of Presentation (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

	*April 30, 2024*
Consolidated Balance Sheet	*As Reported*		*Adjustment*			*As Revised*
Property, plant and equipment, net of accumulated depreciation	$	38,211	$	(1,423	)	$	36,788
Total assets	$	157,163	$	(1,423	)	$	155,740

Trade accounts payable	$	24,672		(1,423	)	$	23,249
Total current liabilities	$	59,410	$	(1,423	)	$	57,987

	*April 30, 2024*
Consolidated Statement of Cash Flows	*As Reported*			*Adjustment*			*As Revised*
Operating activities
Accounts payable		(268	)		(1,423	)		(1,691	)
Net cash provided by operating activities	$	1,350		$	(1,423	)	$	(73	)

Investing activities
Capital expenditures	$	(2,012	)	$	1,423		$	(589	)
Net cash used in investing activities	$	(2,012	)	$	1,423		$	(589	)

Note 4 - Revenue Recognition (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Disaggregation of Revenue [Table Text Block]

	*Three Months Ended October 31,*										*Nine Months Ended October 31,*
	*2024*					*2023*					*2024*					*2023*
	*Sales*		*% of Total*			*Sales*		*% of Total*			*Sales*		*% of Total*			*Sales*		*% of Total*
Products	$	3,622		8	%	$	2,553		5	%	$	9,670		8	%	$	7,541		7	%

Specialty Piping Systems and Coating
Revenue recognized under input method		12,268		30	%		18,641		41	%		35,020		31	%		41,779		38	%
Revenue recognized under output method		25,673		62	%		24,496		54	%		68,707		61	%		61,169		55	%
Total	$	41,563		100	%	$	45,690		100	%	$	113,397		100	%	$	110,489		100	%

Schedule of Assumptions for Long-Duration Contracts by Product and Guarantee [Table Text Block]

	*October 31, 2024*			*January 31, 2024*
Costs incurred on uncompleted contracts	$	15,742		$	21,912
Estimated earnings		11,766			11,270
Earned revenue		27,508			33,182
Less billings to date		26,359			30,580
Costs in excess of billings, net	$	1,149		$	2,602
Balance sheet classification
Contract assets: Costs and estimated earnings in excess of billings on uncompleted contracts	$	2,499		$	3,097
Contract liabilities: Billings in excess of costs and estimated earnings on uncompleted contracts		(1,350	)		(495	)
Costs in excess of billings, net	$	1,149		$	2,602

Note 5 - Inventories (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	*October 31, 2024*		*January 31, 2024*
Raw materials	$	15,033	$	13,787
Work in process		481		611
Finished goods		1,264		2,022
Subtotal		16,778		16,420
Less allowance		821		879
Inventories	$	15,957	$	15,541

Note 7 - Goodwill (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Schedule of Goodwill [Table Text Block]

		*January 31, 2024*				*Foreign exchange change effect*				*October 31, 2024*
Goodwill		$	2,222			$	(81	)		$	2,141

Note 8 - Stock-based Compensation (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	*Three Months Ended October 31,*				*Nine Months Ended October 31,*
	*2024*		*2023*		*2024*		*2023*
Restricted stock-based compensation expense	$	232	$	227	$	629	$	686

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	*Options*			*Weighted Average Exercise Price (Per share)*		*Weighted Average Remaining Contractual Term (In years)*		*Aggregate Intrinsic Value*
Outstanding at January 31, 2024		22		$	11.15		0.7	$	6
Exercised		(5	)		6.89		-		21
Expired or forfeited		(17	)		12.41		-		-
Outstanding and exercisable at October 31, 2024		-		$	6.85		1.1	$	4

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

	*Restricted Shares*			*Weighted Average Price (Per share)*		*Aggregate Intrinsic Value*
Outstanding at January 31, 2024		222		$	9.33	$	2,078
Granted		108			8.81
Vested and issued		(73	)		9.36
Forfeited or retired for taxes		(27	)		10.29
Outstanding at October 31, 2024		230		$	9.05	$	2,080

Note 9 - Earnings Per Share (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	*Three Months Ended October 31,*				*Nine Months Ended October 31,*
	*2024*		*2023*		*2024*		*2023*
Basic weighted average common shares outstanding at October 31, 2024		7,981		7,955		7,947		7,996
Dilutive effect of equity compensation plans		46		66		44		110
Weighted average common shares outstanding assuming full dilution		8,027		8,021		7,991		8,106

Stock options and restricted stock not included in the computation of diluted earnings per share of common stock because the option exercise prices or grant date prices exceeded the average market prices of the common shares		-		122		2		18
Stock options and restricted stock with exercise prices or grant date prices below the average market prices		46		66		44		170

Net income attributable to common stock	$	2,491	$	1,935	$	7,223	$	1,834

Earnings per share attributable to common stock
Basic	$	0.31	$	0.24	$	0.91	$	0.23
Diluted	$	0.31	$	0.24	$	0.90	$	0.23

Note 11 - Leases (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Supplemental Balance Sheet Information Related to Leases [Table Text Block]

Operating and Finance leases	*October 31, 2024*			*January 31, 2024*
Finance leases assets:
Property and Equipment - gross	$	935		$	970
Accumulated depreciation and amortization		(615	)		(536	)
Property and Equipment - net	$	320		$	434

Finance lease liabilities:
Finance lease liability short-term	$	33		$	113
Finance lease liability long-term		53			-
Total finance lease liabilities	$	86		$	113

Operating lease assets:
Operating lease ROU assets	$	7,403		$	6,467

Operating lease liabilities:
Operating lease liability short-term	$	1,061		$	914
Operating lease liability long-term		7,104			6,270
Total operating lease liabilities	$	8,165		$	7,184

Lease, Cost [Table Text Block]

		*Three Months Ended October 31,*					*Nine Months Ended October 31,*
Lease costs	*Consolidated Statements of Operations Classification*	*2024*		*2023*			*2024*		*2023*
Finance Lease Costs
Amortization of ROU assets	Cost of sales	$	25	$	37		$	100	$	121
Interest on lease liabilities	Interest expense		1		3			5		7
Operating lease costs	Cost of sales, SG&A expenses		463		564			1,361		1,450
Short-term lease costs (1)	Cost of sales, SG&A expenses		151		99			384		350
Sub-lease income	SG&A expenses		-		(20	)		-		(61	)
*Total Lease costs*		$	640	$	683		$	1,850	$	1,867

Supplemental Cash Flow Information Related Leases [Table Text Block]

	*Nine Months Ended October 31,*
	*2024*		*2023*
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash outflows from finance leases	$	23	$	176
Operating cash outflows from finance leases		5		7
Operating cash outflows from operating leases		1,690		1,399

ROU assets obtained in exchange for new lease obligations:
Finance leases liabilities	$	-	$	139
Operating leases liabilities	$	1,718	$	3,615

Weighted-average Lease Terms and Discount Rates [Table Text Block]

	*October 31, 2024*
Weighted-average remaining lease terms (in years):
Finance leases		2.5
Operating leases		12.3

Weighted-average discount rates:
Finance leases		6.4	%
Operating leases		10.1	%

Finance and Operating Lease, Liability, Maturity [Table Text Block]

		*Operating Leases*			*Finance Leases*
For the six months ending January 31, 2025	$	396		$	9
For the year ended January 31, 2026		2,154			37
For the year ended January 31, 2027		2,148			37
For the year ended January 31, 2028		2,147			9
For the year ended January 31, 2029		1,805			-
For the year ended January 31, 2030		773			-
Thereafter		7,162			-
Total lease payments	$	16,585		$	92

Less: amount representing interest		(8,420	)		(6	)
Total lease liabilities at October 31, 2024	$	8,165		$	86

Note 12 - Restricted Cash (Tables)

9 Months Ended

Oct. 31, 2024

Notes Tables

Restrictions on Cash and Cash Equivalents [Table Text Block]

	*October 31, 2024*		*January 31, 2024*
Cash and cash equivalents	$	13,307	$	5,845
Restricted cash		1,419		1,395
Cash, cash equivalents and restricted cash shown in the statement of cash flows	$	14,726	$	7,240

Note 1 - Basis of Presentation (Details Textual) - USD ($) $ in Thousands	Oct. 31, 2024	Apr. 30, 2024	Jan. 31, 2024
Property, Plant and Equipment, Net	$ 35,652	$ 36,788	$ 37,620
Accounts Payable, Current	$ 20,788	23,249	$ 25,323
Revision of Prior Period, Adjustment [Member]
Property, Plant and Equipment, Net		(1,423)
Accounts Payable, Current		$ (1,423)

Note 1 - Basis of Presentation - Impact of Corrections (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 30, 2024	Oct. 31, 2024	Oct. 31, 2023	Jan. 31, 2024
Property, plant and equipment, net of accumulated depreciation	$ 36,788	$ 35,652		$ 37,620
Total assets	155,740	160,749		155,711
Trade accounts payable	23,249	20,788		25,323
Total current liabilities	57,987	53,794		$ 57,742
Accounts payable	(1,691)	(3,954)	$ 9,346
Net cash provided by operating activities	(73)	7,906	7,617
Capital expenditures	(589)	(1,555)	(8,204)
Net cash used in investing activities	(589)	$ (1,555)	$ (8,199)
Previously Reported [Member]
Property, plant and equipment, net of accumulated depreciation	38,211
Total assets	157,163
Trade accounts payable	24,672
Total current liabilities	59,410
Accounts payable	(268)
Net cash provided by operating activities	1,350
Capital expenditures	(2,012)
Net cash used in investing activities	(2,012)
Revision of Prior Period, Adjustment [Member]
Property, plant and equipment, net of accumulated depreciation	(1,423)
Total assets	(1,423)
Trade accounts payable	(1,423)
Total current liabilities	(1,423)
Accounts payable	(1,423)
Net cash provided by operating activities	(1,423)
Capital expenditures	1,423
Net cash used in investing activities	$ 1,423

Note 2 - Business Segment Reporting (Details Textual)	9 Months Ended
Note 2 - Business Segment Reporting (Details Textual)	Oct. 31, 2024
Number of Reportable Segments	1

Note 3 - Accounts Receivable (Details Textual) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended	106 Months Ended
	Oct. 31, 2024 USD ($)	Oct. 31, 2023	Oct. 31, 2024 USD ($)	Oct. 31, 2023 USD ($)	Jan. 31, 2024	Oct. 31, 2024 USD ($)	Dec. 31, 2015 USD ($)
Increase (Decrease) in Accounts Receivable			$ (6,047)	$ 5,377
Revenue Benchmark [Member] \| Customer Concentration Risk [Member]
Number of Major Customers	0	1	0	0
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Number of Major Customers			0		1
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts Receivable, after Allowance for Credit Loss	$ 1,800		$ 1,800			$ 1,800	$ 41,900
Increase (Decrease) in Accounts Receivable			(300)	$ (600)		(40,100)
Accounts Receivable, Allowance for Credit Loss	0		0			0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] \| Other Noncurrent Assets [Member]
Accounts Receivable, after Allowance for Credit Loss	$ 1,300		$ 1,300			$ 1,300

Note 4 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2024	Jan. 31, 2024
Costs Incurred for Uncompleted Contracts, Anticipated Collection Period (Year)	1 year
Unbilled Receivables, Current	$ 19,684	$ 16,597

Note 4 - Revenue Recognition - Revenues by Revenue Class (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Oct. 31, 2024	Oct. 31, 2023
Sales by product	$ 41,563	$ 45,690	$ 113,397	$ 110,489
Sales by product, percent	100.00%	100.00%	100.00%	100.00%
Product [Member] \| Transferred at Point in Time [Member]
Sales by product	$ 3,622	$ 2,553	$ 9,670	$ 7,541
Sales by product, percent	8.00%	5.00%	8.00%	7.00%
Specialty Piping Systems And Coating [Member] \| Transferred at Point in Time Using Input Method [Member]
Sales by product	$ 12,268	$ 18,641	$ 35,020	$ 41,779
Sales by product, percent	30.00%	41.00%	31.00%	38.00%
Specialty Piping Systems And Coating [Member] \| Transferred at Point in Time Using Output Method [Member]
Sales by product	$ 25,673	$ 24,496	$ 68,707	$ 61,169
Sales by product, percent	62.00%	54.00%	61.00%	55.00%

Note 4 - Revenue Recognition - Reconciliation of the Cost in Excess of Billings (Details) - USD ($) $ in Thousands	Oct. 31, 2024	Jan. 31, 2024
Costs incurred on uncompleted contracts	$ 15,742	$ 21,912
Estimated earnings	11,766	11,270
Earned revenue	27,508	33,182
Less billings to date	26,359	30,580
Costs in excess of billings, net	1,149	2,602
Contract assets: Costs and estimated earnings in excess of billings on uncompleted contracts	2,499	3,097
Contract liabilities: Billings in excess of costs and estimated earnings on uncompleted contracts	(1,350)	(495)
Costs in excess of billings, net	$ 1,149	$ 2,602

Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Oct. 31, 2024	Jan. 31, 2024
Raw materials	$ 15,033	$ 13,787
Work in process	481	611
Finished goods	1,264	2,022
Subtotal	16,778	16,420
Less allowance	821	879
Inventories	$ 15,957	$ 15,541

Note 6 - Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Oct. 31, 2024	Oct. 31, 2023
Effective Income Tax Rate Reconciliation, Percent	32.00%	31.00%	28.00%	49.00%
Undistributed Earnings of Foreign Subsidiaries	$ 0.8		$ 0.8

Note 7 - Goodwill (Details Textual)	Dec. 31, 2016
Perma-Pipe Canada, Ltd [Member]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage	50.00%

Note 7 - Goodwill - Goodwill (Details) $ in Thousands	9 Months Ended
Note 7 - Goodwill - Goodwill (Details) $ in Thousands	Oct. 31, 2024 USD ($)
Goodwill	$ 2,222
Goodwill, foreign exchange change effect	(81)
Goodwill	$ 2,141

Note 8 - Stock-based Compensation (Details Textual) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 31, 2024 USD ($) shares	Oct. 31, 2024 USD ($) shares
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	196,276	196,276
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)	0	0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares (in shares)		0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)	0	0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period (in shares)		0
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $	$ 0	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period (in shares)		17,000
Restricted Stock [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $	$ 1,300	$ 1,300
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)		1 year 10 months 24 days

Note 8 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Oct. 31, 2024	Oct. 31, 2023
Restricted Stock [Member]
Stock-based compensation expense	$ 232	$ 227	$ 629	$ 686

Note 8 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Oct. 31, 2024	Jan. 31, 2024
Expired or forfeited, options (in shares)	0
Share-Based Payment Arrangement, Option [Member]
Outstanding, options (in shares)	22
Outstanding, weighted average exercise price (in dollars per share)	$ 11.15
Outstanding, weighted average remaining contractual term (Year)	1 year 1 month 6 days	8 months 12 days
Outstanding, aggregate intrinsic value	$ 4	$ 6
Exercised, options (in shares)	(5)
Exercised, weighted average exercise price (in dollars per share)	$ 6.89
Exercised, aggregate intrinsic value	$ 21
Expired or forfeited, options (in shares)	(17)
Expired or forfeited, weighted average exercise price (in dollars per share)	$ 12.41
Outstanding, options (in shares)	0	22
Outstanding, weighted average exercise price (in dollars per share)	$ 6.85	$ 11.15

Note 8 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Oct. 31, 2024	Jan. 31, 2024
Outstanding (in shares)	222
Outstanding, weighted average price (in dollars per share)	$ 9.33
Outstanding, aggregate intrinsic value	$ 2,080	$ 2,078
Granted (in shares)	108
Granted, weighted average price (in dollars per share)	$ 8.81
Vested and issued (in shares)	(73)
Vested and issued, weighted average price (in dollars per share)	$ 9.36
Forfeited or retired for taxes (in shares)	(27)
Forfeited or retired for taxes (in dollars per share)	$ 10.29
Outstanding (in shares)	230
Outstanding, weighted average price (in dollars per share)	$ 9.05

Note 9 - Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 31, 2024	Jul. 31, 2024	Apr. 30, 2024	Oct. 31, 2023	Jul. 31, 2023	Apr. 30, 2023	Oct. 31, 2024	Oct. 31, 2023
Basic (in shares)	7,981			7,955			7,947	7,996
Dilutive effect of equity compensation plans (in shares)	46			66			44	110
Weighted average common shares outstanding assuming full dilution (in shares)	8,027			8,021			7,991	8,106
Stock options and restricted stock not included in the computation of diluted earnings per share of common stock because the option exercise prices or grant date prices exceeded the average market prices of the common shares (in shares)	0			122			2	18
Stock options and restricted stock with exercise prices or grant date prices below the average market prices (in shares)	46			66			44	170
Net income attributable to common stock	$ 2,491	$ 3,289	$ 1,443	$ 1,935	$ 1,022	$ (1,123)	$ 7,223	$ 1,834
Basic (in dollars per share)	$ 0.31			$ 0.24			$ 0.91	$ 0.23
Diluted (in dollars per share)	$ 0.31			$ 0.24			$ 0.9	$ 0.23

Note 10 - Debt (Details Textual) $ in Thousands, د.إ in Millions, ج.م. in Millions, $ in Millions					9 Months Ended
	Sep. 17, 2021 USD ($)	Apr. 14, 2021 USD ($)	Sep. 20, 2018 USD ($)	Jul. 28, 2016	Oct. 31, 2024 USD ($)	Nov. 30, 2024 USD ($)	Nov. 30, 2024 AED (د.إ)	Oct. 31, 2024 AED (د.إ)	Oct. 31, 2024 EGP (ج.م.)	Oct. 31, 2024 CAD ($)	Jan. 31, 2024 USD ($)	Jun. 30, 2023 USD ($)	Nov. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 EGP (ج.م.)	Jun. 30, 2021 EGP (ج.م.)
Debt and Lease Obligation					$ 27,000						$ 25,700
Line of Credit, Current					7,766						5,519
Long-Term Debt and Lease Obligation, Noncurrent					3,883						4,229
Long-term Debt, Current Maturities, Excluding North American Revolving Line					$ 3,682						4,071
Minimum [Member]
Lessee, Finance Lease, Term of Contract (Year)					1 year			1 year	1 year	1 year
Maximum [Member]
Lessee, Finance Lease, Term of Contract (Year)					30 years			30 years	30 years	30 years
Land and Buildings in Lebanon, Tennessee [Member]
Lessee, Finance Lease, Term of Contract (Year)		15 years
Sale Leaseback Transaction, Annual Rental Payments, Amount		$ 800
Lessee, Finance Lease, Annual Rent Increase, Percentage		2.00%
Lessee, Finance Lease, Number of Options to Extend		4
Lessee, Finance Lease, Renewal Term (Year)		5 years
Lessee, Finance Lease, Discount Rate		8.00%
Long-Term Debt and Lease Obligation, Current					$ 200
Long-Term Debt and Lease Obligation, Noncurrent					8,900
Mortgage Note Secured by Tennessee Manufacturing Facility [Member]
Repayments of Secured Debt		$ 900
Promissory Note [Member]
Debt Instrument, Face Amount												$ 2,800
Canadian Mortgage Note [Member]
Debt Instrument, Maturity Date				Dec. 23, 2042
Secured Debt					$ 4,200					$ 5.8
Debt Instrument, Interest Rate, Effective Percentage					7.80%			7.80%	7.80%	7.80%
Debt Issuance Costs, Net					$ 100						100
Land and Buildings in Lebanon, Tennessee [Member]
Disposal Group, Including Discontinued Operation, Consideration		10,400
Proceeds from Sale of Property, Plant, and Equipment, Total		$ 9,100
Revolving Lines, North America [Member]
Debt Instrument, Term (Year)	5 years		3 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 18,000		$ 18,000
Line of Credit, Current					$ 7,800						5,500
Line of Credit Facility, Interest Rate at Period End					9.50%			9.50%	9.50%	9.50%
Line of Credit Facility, Current Borrowing Capacity					$ 3,500						4,000
Foreign Revolving Lines [Member]
Line of Credit Facility, Maximum Borrowing Capacity					19,700
Line of Credit Facility, Remaining Borrowing Capacity					8,300
Line of Credit Facility, Guaranteed Amount					1,100						100
Letters of Credit Outstanding, Amount					11,000
Proceeds from Issuance of Debt					$ 3,200
Foreign Revolving Lines [Member] \| Minimum [Member]
Line of Credit Facility, Interest Rate at Period End					7.70%			7.70%	7.70%	7.70%
Debt Instrument, Interest Rate, Stated Percentage					4.50%			4.50%	4.50%	4.50%
Foreign Revolving Lines [Member] \| Maximum [Member]
Line of Credit Facility, Interest Rate at Period End					20.80%			20.80%	20.80%	20.80%
Foreign Revolving Lines [Member] \| Weighted Average [Member]
Line of Credit Facility, Interest Rate at Period End					10.60%			10.60%	10.60%	10.60%
Foreign Revolving Lines [Member] \| EIBOR [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate					3.00%
Foreign Revolving Lines [Member] \| EIBOR [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate					3.50%
Foreign Revolving Lines [Member] \| Central Bank of Eqypt (CBE) Rate [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate					1.50%
Foreign Revolving Lines [Member] \| Central Bank of Eqypt (CBE) Rate [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate					3.50%
Foreign Revolving Lines [Member] \| SIBOR [Member]
Debt Instrument, Basis Spread on Variable Rate					3.50%
Foreign Revolving Lines [Member] \| Revolving Credit Lines Used by Middle Eastern Subsidiaries, 1 [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 2,200			د.إ 8.0
Line of Credit Facility, Interest Rate at Period End					7.70%			7.70%	7.70%	7.70%
Long-term Debt, Current Maturities, Excluding North American Revolving Line					$ 1,100						200
Line of Credit Facility, Remaining Borrowing Capacity					1,000						1,900
Foreign Revolving Lines [Member] \| Revolving Credit Lines Used by Middle Eastern Subsidiaries, 2 [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 5,600			د.إ 20.5
Line of Credit Facility, Interest Rate at Period End					8.60%			8.60%	8.60%	8.60%
Long-term Debt, Current Maturities, Excluding North American Revolving Line					$ 700						100
Line of Credit Facility, Remaining Borrowing Capacity					$ 1,000						1,000
Foreign Revolving Lines [Member] \| Revolving Credit Lines Used by Middle Eastern Subsidiaries, 2 [Member] \| Subsequent Event [Member]
Line of Credit Facility, Maximum Borrowing Capacity						$ 4,800	د.إ 17.5
Line of Credit Facility, Maximum Borrowing Capacity, Increase (Decrease) Due to Capital Expenditure						(500)	(2.0)
Line of Credit Facility, Maximum Borrowing Capacity, Increase (Decrease) Due to Revolver Capacity						$ 300	د.إ 1.0
Foreign Revolving Lines [Member] \| Revolving Credit Lines Used by Egypt Subsidiaries [Member]
Line of Credit Facility, Interest Rate at Period End					20.80%			20.80%	20.80%	20.80%
Long-term Debt, Current Maturities, Excluding North American Revolving Line											1,400
Line of Credit Facility, Remaining Borrowing Capacity					$ 2,000						3,200					ج.م. 100.0
Foreign Revolving Lines [Member] \| Revolving Credit Lines Used by Egypt Subsidiaries 2 [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 100				ج.م. 2.1				$ 0		ج.م. 28.2
Line of Credit Facility, Interest Rate at Period End					11.00%			11.00%	11.00%	11.00%
Long-term Debt, Current Maturities, Excluding North American Revolving Line					$ 100
Foreign Revolving Lines [Member] \| Revolving Credit Lines Used by Saudi Arabian Subsidiary [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 9,900									$ 37,000
Line of Credit Facility, Interest Rate at Period End					9.50%			9.50%	9.50%	9.50%
Long-term Debt, Current Maturities, Excluding North American Revolving Line					$ 1,300						3,200
Foreign Revolving Lines [Member] \| Renewal of Revolving Credit Lines Used by Saudi Arabian Subsidiary [Member]
Line of Credit Facility, Remaining Borrowing Capacity					$ 3,300						$ 6,100

Note 11 - Leases (Details Textual) $ in Thousands, د.إ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2020 AED (د.إ)	Oct. 31, 2024 USD ($)	Oct. 31, 2023 USD ($)	Oct. 31, 2024 USD ($)	Jan. 31, 2024 USD ($)
Finance Lease, Liability		$ 86		$ 86	$ 113
Finance Lease, Right-of-Use Asset, after Accumulated Amortization		300		$ 300
Operating Lease, Expense		$ 600	$ 600
Minimum [Member]
Lessee, Finance Lease, Term of Contract (Year)		1 year		1 year
Maximum [Member]
Lessee, Finance Lease, Term of Contract (Year)		30 years		30 years
Abu Dhabi Land Lease [Member]
Lessee, Operating Lease, Annual Payment	د.إ 1.2			$ 300
Decrease in Operating Lease Liability, Current		$ 400		400
Decrease in Operating Lease Liability, Noncurrent		6,000		6,000
Decrease in Operating Lease Right-of-use Asset		$ 5,500		$ 5,500

Note 11 - Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Oct. 31, 2024	Apr. 30, 2024	Jan. 31, 2024
Property and Equipment - net	$ 35,652	$ 36,788	$ 37,620
Finance lease liability short-term	33		113
Finance lease liability long-term	53		0
Total finance lease liabilities	86		113
Operating lease ROU assets	7,403		6,467
Operating lease liability short-term	1,061		914
Operating lease liability long-term	7,104		6,270
Total operating lease liabilities	8,165		7,184
Finance Leases Assets [Member]
Property and Equipment - gross	935		970
Accumulated depreciation and amortization	(615)		(536)
Property and Equipment - net	$ 320		$ 434

Note 11 - Leases - Lease Costs (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Oct. 31, 2024

Oct. 31, 2023

Oct. 31, 2024

Oct. 31, 2023

Amortization of ROU assets

$ 25

$ 37

$ 100

$ 121

Interest on lease liabilities

Operating lease costs

463

564

1,361

1,450

Short-term lease costs (1)

^[1]

151

384

350

Sub-lease income

(20)

(61)

Total Lease costs

$ 640

$ 683

$ 1,850

$ 1,867

[1]	Includes variable lease costs, which are not material.

Note 11 - Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Financing cash outflows from finance leases	$ 23	$ 176
Operating cash outflows from finance leases	5	7
Operating cash outflows from operating leases	1,690	1,399
Finance leases liabilities	0	139
Operating leases liabilities	$ 1,718	$ 3,615

Note 11 - Leases - Weighted-average Lease Terms and Discount Rates (Details)	Oct. 31, 2024
Finance leases (Year)	2 years 6 months
Operating leases (Year)	12 years 3 months 18 days
Finance leases	6.40%
Operating leases	10.10%

Note 11 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2024	Jan. 31, 2024
For the six months ending January 31, 2025	$ 396
For the six months ending January 31, 2025, finance leases	9
For the year ended January 31, 2026, operating leases	2,154
For the year ended January 31, 2026, finance leases	37
For the year ended January 31, 2027, operating leases	2,148
For the year ended January 31, 2027, finance leases	37
For the year ended January 31, 2028, operating leases	2,147
For the year ended January 31, 2028, finance leases	9
For the year ended January 31, 2029, operating leases	1,805
For the year ended January 31, 2029, finance leases	0
For the year ended January 31, 2030, operating leases	773
For the year ended January 31, 2030, finance leases	0
Thereafter, operating leases	7,162
Thereafter, finance leases	0
Total lease payments, operating leases	16,585
Total lease payments, finance leases	92
Less: amount representing interest, operating leases	(8,420)
Less: amount representing interest, finance leases	(6)
Total lease liabilities, operating leases	8,165	$ 7,184
Total lease liabilities, finance leases	$ 86	$ 113

Note 12 - Restricted Cash - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Oct. 31, 2024	Jan. 31, 2024
Cash and cash equivalents	$ 13,307	$ 5,845
Restricted cash	1,419	1,395
Cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 14,726	$ 7,240

Note 15 - Treasury Stock (Details Textual) - USD ($) shares in Thousands, $ in Millions	3 Months Ended	9 Months Ended
	Oct. 31, 2024	Oct. 31, 2024	Jan. 31, 2024	Dec. 07, 2022	Oct. 04, 2021
Share Repurchase Program, Authorized, Amount				$ 1	$ 3
Stock Repurchase Program, Authorized Repurchase Amount Used			$ 1
Stock Repurchased During Period, Shares (in shares)	0	0

Note 16 - Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Oct. 31, 2024	Oct. 31, 2023	Apr. 30, 2024	Jan. 31, 2024	Jun. 01, 2023
Assets	$ 160,749		$ 160,749		$ 155,740	$ 155,711
Net Income (Loss) Attributable to Noncontrolling Interest	962	$ 1,429	2,303	$ 1,577
Redeemable Noncontrolling Interest, Equity, Carrying Amount	8,952		8,952			6,266
Gulf Insulation Group [Member]
Net Income (Loss) Attributable to Noncontrolling Interest	1,000	$ 1,400	2,300	$ 1,600
Redeemable Noncontrolling Interest, Equity, Carrying Amount	9,000		9,000			$ 6,300
Noncontrolling Interest, Increase from Business Combination			400
Related Party [Member]
Assets	31,800		31,800
Liabilities	$ 18,500		$ 18,500
Joint Venture [Member]
Subsidiary, Ownership Percentage, Parent							60.00%
Joint Venture [Member] \| Gulf Insulation Group [Member]
Subsidiary, Ownership Percentage, Parent							40.00%