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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number: 001-13490 
MIND TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Delaware 76-0210849
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
2002 Timberloch Place
Suite 400
The Woodlands, Texas 77380
(Address of principal executive offices, including Zip Code)
(281) 353-4475
(Registrant’s telephone number, including area code) 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock - $0.01 par value per shareMINDThe NASDAQ Stock Market LLC
Series A Preferred Stock - $1.00 par value per shareMINDPThe 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  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 12,875,221 shares of common stock, $0.01 par value, were outstanding as of December 3, 2020.


Table of Contents
MIND TECHNOLOGY, INC.
Table of Contents
 
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 

ii

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MIND TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
October 31, 2020January 31, 2020
ASSETS
Current assets:
Cash and cash equivalents$2,664 $3,090 
Restricted cash 144 
Accounts receivable, net of allowance for doubtful accounts of $1,044 and $2,378
at October 31, 2020 and January 31, 2020, respectively
5,609 6,623 
Inventories, net11,880 12,656 
Prepaid expenses and other current assets1,278 1,987 
Assets held for sale5,440 14,913 
Total current assets26,871 39,413 
Property and equipment, net4,954 5,419 
Operating lease right-of-use assets 1,363 2,300 
Intangible assets, net6,831 8,136 
Goodwill 2,531 
Other assets774 429 
Total assets$40,793 $58,228 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,441 $1,767 
Deferred revenue205 731 
Accrued expenses and other current liabilities2,468 1,565 
Income taxes payable691 316 
Operating lease liabilities - current280 1,339 
Liabilities held for sale1,133 2,730 
Total current liabilities6,218 8,448 
Operating lease liabilities - non-current1,083 961 
Notes payable1,607  
Other non-current liabilities797 967 
Deferred tax liability134 200 
Total liabilities9,839 10,576 
Shareholders’ equity:
Preferred stock, $1.00 par value; 2,000 shares authorized; 994 shares issued and
outstanding at October 31, 2020 and January 31, 2020
22,104 22,104 
Common stock, $0.01 par value; 40,000 shares authorized; 14,773 and 14,097 shares issued at
October 31, 2020 and January 31, 2020, respectively
148 141 
Additional paid-in capital
125,810 123,964 
Treasury stock, at cost (1,929 shares at October 31, 2020 and January 31, 2020)
(16,860)(16,860)
Accumulated deficit(95,823)(77,310)
Accumulated other comprehensive loss(4,425)(4,387)
Total shareholders’ equity30,954 47,652 
Total liabilities and shareholders’ equity$40,793 $58,228 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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MIND TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 For the Three Months Ended October 31,For the Nine Months Ended October 31,
 2020201920202019
Revenues:
Sale of marine technology products
$6,541 $8,175 $14,814 $21,039 
Total revenues6,541 8,175 14,814 21,039 
Cost of sales:
Sale of marine technology products
4,267 4,860 10,039 12,478 
Total cost of sales4,267 4,860 10,039 12,478 
Gross profit
2,274 3,315 4,775 8,561 
Operating expenses:
Selling, general and administrative2,973 3,401 8,915 10,538 
Research and development912 629 2,077 1,442 
Impairment of intangible assets  2,531  
Depreciation and amortization662 604 2,092 1,810 
Total operating expenses4,547 4,634 15,615 13,790 
Operating loss(2,273)(1,319)(10,840)(5,229)
Other income (expense):
Other, net12 (31)68 145 
Total other income (expense)12 (31)68 145 
Loss from continuing operations before income taxes(2,261)(1,350)(10,772)(5,084)
(Provision) benefit for income taxes(109)31 79 75 
Loss from continuing operations(2,370)(1,319)(10,693)(5,009)
Loss from discontinued operations, net of income taxes(1,220)(709)(6,143)(2,570)
Net loss$(3,590)$(2,028)$(16,836)$(7,579)
Preferred stock dividends(559)(522)(1,677)(1,492)
Net loss attributable to common shareholders$(4,149)$(2,550)$(18,513)$(9,071)
Net loss per common share - Basic
Continuing operations$(0.24)$(0.15)$(1.01)$(0.54)
Discontinued operations$(0.10)$(0.06)$(0.50)$(0.21)
Net loss$(0.34)$(0.21)$(1.51)$(0.75)
Net loss per common share - Diluted
Continuing operations$(0.24)$(0.15)$(1.01)$(0.54)
Discontinued operations$(0.10)$(0.06)$(0.50)$(0.21)
Net loss$(0.34)$(0.21)$(1.51)$(0.75)
Shares used in computing net loss per common share:
Basic12,313 12,158 12,223 12,135 
Diluted12,313 12,158 12,223 12,135 
The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Table of Contents
MIND TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)
 
 For the Three Months Ended October 31,For the Nine Months Ended October 31,
 2020201920202019
Net loss attributable to common shareholders$(4,149)$(2,550)$(18,513)$(9,071)
Change in cumulative translation adjustment for sale of foreign entity   (331)
Other changes in cumulative translation adjustment 11 115 (38)(45)
Comprehensive loss$(4,138)$(2,435)$(18,551)$(9,447)
The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Table of Contents
MIND TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
 For the Nine Months Ended October 31,
 20202019
Cash flows from operating activities:
Net loss$(16,836)$(7,579)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization3,920 5,806 
Stock-based compensation562 612 
Impairment of intangible assets2,531  
Loss on disposal of discontinued operations1,859  
Provision for doubtful accounts, net of charge offs470 23 
Provision for inventory obsolescence256  
Gross profit from sale of lease pool equipment(1,326)(987)
Gross profit from sale of other equipment(303) 
Deferred tax expense(32)135 
Non-current prepaid tax (157)
Changes in:
Accounts receivable3,640 (1,020)
Unbilled revenue(6)(302)
Inventories762 (2,835)
Prepaid expenses and other current and long-term assets1,065 240 
Income taxes receivable and payable390  
Accounts payable, accrued expenses and other current liabilities(1,827)(392)
Deferred revenue72 1,979 
Foreign exchange losses net of gains 230 
Net cash used in operating activities(4,803)(4,247)
Cash flows from investing activities:
Purchases of seismic equipment held for lease(110)(1,939)
Purchases of property and equipment(64)(893)
Sale of used lease pool equipment2,010 1,415 
Sale of assets held for sale734  
Sale of business, net of cash sold 239 
Net cash provided by (used in) investing activities2,570 (1,178)
Cash flows from financing activities:
Proceeds from exercise of stock options 25 
Net proceeds from preferred stock offering 2,211 
Net proceeds from common stock offering1,291  
Preferred stock dividends(1,118)(1,492)
Proceeds from PPP loans1,607  
Net cash provided by financing activities1,780 744 
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash(117)(69)
Net decrease in cash, cash equivalents and restricted cash(570)(4,750)
Cash, cash equivalents and restricted cash, beginning of period3,234 9,549 
Cash, cash equivalents and restricted cash, end of period$2,664 $4,799 
Supplemental cash flow information:
Interest paid$34 $40 
Income taxes paid$219 $325 
Purchases of seismic equipment held for lease in accounts payable at end of period$ $753 
Purchase of seismic equipment held for lease through settlement of accounts receivable$ $826 
4

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The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Table of Contents
MIND TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in thousands)
(unaudited)
 Common StockPreferred StockAccumulated
Other
Comprehensive
Loss
 SharesAmountSharesAmountAdditional
Paid-In
Capital
Treasury
Stock

Accumulated
Deficit
Total
Balances, January 31, 202014,097 $141 994 $22,104 $123,964 $(16,860)$(77,310)$(4,387)$47,652 
Net loss— — — — — — (6,642)— (6,642)
Foreign currency translation— — — — — — — (131)(131)
Preferred stock dividends— — — — — — (559)— (559)
Stock-based compensation— — — — 230 — — — 230 
Balances, April 30, 202014,097 $141 994 $22,104 $124,194 $(16,860)$(84,511)$(4,518)$40,550 
Net loss— — — — — — (6,604)— (6,604)
Foreign currency translation— — — — — — — 82 82 
Preferred stock dividends— — — — — — (559)— (559)
Stock-based compensation— — — — 219 — — — 219 
Balances, July 31, 202014,097 $141 994 $22,104 $124,413 $(16,860)$(91,674)$(4,436)$33,688 
Net loss— — — — — — (3,590)— (3,590)
Foreign currency translation— — — — — — — 11 11 
Preferred stock dividends— — — — — — (559)— (559)
Common stock offerings676 7 — — 1,284 — — — 1,291 
Stock-based compensation— — — — 113 — — — 113 
Balances, October 31, 202014,773 $148 994 $22,104 $125,810 $(16,860)$(95,823)$(4,425)$30,954 

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MIND TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in thousands)
(unaudited)
Common StockPreferred StockAccumulated Other Comprehensive Loss
 SharesAmountSharesAmountAdditional
Paid-In
Capital
Treasury
Stock
Accumulated DeficitTotal
Balances, January 31, 201914,049 $140 830 $18,330 $123,085 $(16,860)$(63,973)$(4,044)$56,678 
Net loss— — — — — — (2,415)— (2,415)
Foreign currency translation— — — — — — — (450)(450)
Preferred stock offering— — 17 409 — — — — 409 
Preferred stock dividends— — — — — — (471)— (471)
Stock-based compensation— — — — 172 — — — 172 
Balances, April 30, 201914,049 $140 847 $18,739 $123,257 $(16,860)$(66,859)$(4,494)$53,923 
Net loss— — — — — — (3,137)— (3,137)
Foreign currency translation— — — — — — — (41)(41)
Equity Compensation9 1 — — 25 — — — 26 
Preferred stock offering— — 70 1,571 — — — — 1,571 
Preferred stock dividends— — — — — — (499)— (499)
Stock-based compensation— — — — 170 — — — 170 
Balances, July 31, 201914,058 $141 917 $20,310 $123,452 $(16,860)$(70,495)$(4,535)$52,013 
Net loss— — — — — — (2,028)— (2,028)
Foreign currency translation— — — — — — — 115 115 
Restricted stock issued39 — — — — — — — — 
Preferred stock offering— — 11 230 — — — — 230 
Preferred stock dividends— — — — — — (522)— (522)
Stock-based compensation— — — — 270 — — — 270 
Balances, October 31, 201914,097 $141 928 $20,540 123,722 $(16,860)$(73,045)$(4,420)$50,078 

The accompanying notes are an integral part of these condensed consolidated financial statements.


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MIND TECHNOLOGY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. Organization

MIND Technology, Inc., a Delaware corporation (the “Company”), formerly Mitcham Industries, Inc., a Texas corporation, was incorporated in 1987. Effective August 3, 2020 the Company effectuated a reincorporation to the state of Delaware. Concurrent with the reincorporation the name of the Company was changed to MIND Technology, Inc. and the number of shares of common stock and preferred stock authorized for issuance was increased. See Note 16 - Corporate Restructuring, to the condensed consolidated financial statements.
The Company, through its wholly owned subsidiary, Seamap Pte, Ltd. (“Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in New Hampshire, Singapore, Malaysia, the United Kingdom and Texas. Prior to July 31, 2020, the Company, together with its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”); its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”); and its branch operations in Colombia, provided full-service equipment leasing, sales and service to the seismic industry worldwide. In February 2019 the Company sold its wholly owned Australian subsidiary Seismic Asia Pacific Pty Ltd (“SAP”). See Note 14 - Sale of Subsidiaries to the condensed consolidated financial statements for more information. All intercompany transactions and balances have been eliminated in consolidation.
During the second quarter of the fiscal year ending January 31, 2021 (“fiscal 2021”), management and the board of directors (the “Board”) of the Company determined to exit the land seismic leasing business (the “Leasing Business”), which comprises essentially all operations of the Equipment Leasing segment. Accordingly, the results of operations for this segment are excluded from the Company’s continuing operations for fiscal 2021 and all comparative periods and presented as discontinued operations in the Company’s condensed consolidated financial statements. See Note 3 - Assets Held for Sale and Discontinued Operations to the condensed consolidated financial statements for further details.
These condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. The Company has a history of losses, has had negative cash from operating activities in the last two fiscal years and may not have access to sources of capital that were available in prior periods. In addition, the COVID-19 pandemic and the decline in oil prices during the first nine months of fiscal 2021 have created substantial doubt and could have a material adverse effect on the Company’s business, financial position, results of operations and liquidity. Accordingly, substantial doubt has arisen regarding the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result should the Company not be able to continue as a going concern.
2. Basis of Presentation
The condensed consolidated balance sheet as of January 31, 2020 for the Company has been derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2020. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position as of October 31, 2020, the results of operations for the three and nine months ended October 31, 2020 and 2019, the cash flows for the nine months ended October 31, 2020 and 2019, and the statement of shareholders’ equity for the three and nine months ended October 31, 2020 and 2019, have been included in these condensed consolidated financial statements. The foregoing interim results are not necessarily indicative of the results of operations to be expected for the full fiscal year ending January 31, 2021.
3. Assets Held for Sale and Discontinued Operations
On July 27, 2020, the Board determined to exit the Leasing Business, which comprises essentially all operations of the Equipment Leasing segment. As a result, the assets, excluding cash, and liabilities of the Equipment Leasing segment are considered held for sale and the segment’s operations are reported as discontinued operations as of October 31, 2020 and for all comparative periods presented in these condensed consolidated financial statements. The Company anticipates selling the discontinued operations within twelve months from July 27, 2020 in a single transaction, or multiple transactions, which may involve the sale of legal entities or assets.



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The assets reported as held for sale consist of the following:
October 31, 2020January 31, 2020
Current assets of discontinued operations:
Accounts receivable, net
1,963 5,699 
Inventories, net359 605 
Prepaid expenses and other current assets141 227 
Seismic equipment lease pool and property and equipment, net2,977 8,382 
Total assets of discontinued operations$5,440 $14,913 

The liabilities reported as held for sale consist of the following:
October 31, 2020January 31, 2020
Current liabilities of discontinued operations:
Accounts payable$71 $884 
Deferred revenue18 34 
Accrued expenses and other current liabilities1,044 1,886 
Income taxes payable (74)
Total liabilities of discontinued operations1,133 2,730 

The results of operations from discontinued operations for the three and nine months ended October 31, 2020 and 2019, consist of the following:
 For the Three Months Ended October 31,For the Nine Months Ended October 31,
 2020201920202019
Revenues:
Revenue from discontinued operations$313 $2,488 $5,731 $8,379 
Cost of sales:
Cost of discontinued operations263 1,752 4,389 6,266 
Operating expenses:
Selling, general and administrative1,146 1,305 4,322 4,195 
Provision for doubtful accounts  470  
Depreciation and amortization43 41 128 136 
Total operating expenses1,189 1,346 4,920 4,331 
Operating loss(1,139)(610)(3,578)(2,218)
Other income (expenses)(75)(8) (114)
Loss on disposal (including $2,745 of cumulative translation loss)
  (1,859) 
Loss before income taxes(1,214)(618)(5,437)(2,332)
Provision for income taxes(6)(91)(706)(238)
Net loss(1,220)(709)(6,143)(2,570)

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The significant operating and investing noncash items and capital expenditures related to discontinued operations are summarized below:
 For the Nine Months Ended October 31,
 20202019
Depreciation and amortization$1,771 $3,651 
Gross profit from sale of lease pool equipment$(1,326)$(987)
Provisions for doubtful accounts$470 $ 
Loss on disposal of discontinued operations$1,859 $ 
Sale of used lease pool equipment$2,010 $1,415 
Sale of assets held for sale$734 $ 
Purchase of seismic equipment held for lease$(110)$(1,938)

4. New Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. Certain amendments within this ASU are required to be applied on a retrospective basis for all periods presented; others are to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings, if any, as of the beginning of the first reporting period in which the guidance is adopted; and yet others are to be applied using either basis. All other amendments not specified in the ASU should be applied on a prospective basis. Early adoption is permitted. An entity that elects to early adopt in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the new guidance to determine the impact it will have on its condensed consolidated financial statements.
In August 2018, the SEC adopted amendments to simplify certain disclosure requirements, as set forth in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which includes a requirement for entities to present the changes in shareholders’ equity in the interim financial statements in quarterly reports on Form 10-Q. This amendment is effective for all filings made on or after November 5, 2018. Considering the timing of effectiveness of the amendment and proximity to the filing date for most filers’ quarterly reports, the SEC has allowed for a filer’s first presentation of the changes in shareholders’ equity to be included in its Form 10-Q for the quarter that begins after the effective date. The Company adopted the SEC’s amendment to interim disclosures in the first quarter of fiscal 2020 and has presented the changes in shareholders’ equity on an interim basis.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) as modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The Company adopted the standard effective February 1, 2019. We have elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at February 1, 2019 and we have elected to apply several of the practical expedients in conjunction with accounting policy elections. See Note 7 - Leases to our condensed consolidated financial statements for additional details.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company adopted this guidance effective February 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.
In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances. The Company adopted this guidance in the first quarter of fiscal 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.
5. Revenue from Contracts with Customers
The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition:
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 Three Months Ended October 31,Nine Months Ended October 31,
2020201920202019
Revenue recognized at a point in time:(in thousands)
Seamap$5,196 $5,694 $11,066 $14,648 
Klein1,150 2,380 3,152 5,778 
SAP   101 
Total revenue recognized at a point in time$6,346 $8,074 $14,218 $20,527 
Revenue recognized over time:
Seamap$195 $238 $596 $512 
Total revenue recognized over time195 238 596 512 
Total revenue from contracts with customers$6,541 $8,312 $14,814 $21,039 

The revenue from products manufactured and sold by our Seamap and Klein businesses, as well as the revenue from products marketed and sold by our SAP business, is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. Our Seamap business also provides Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA’s is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract, which is typically twelve months. The Company sold SAP during the first quarter of fiscal 2020. See Note 14 to our condensed consolidated financial statements for more information.
The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers:
 Three Months Ended October 31,Nine Months Ended October 31,
2020201920202019
(in thousands)
United States$282 $1,453 $2,068 $3,293 
Europe, Russia & CIS2,001 3,769 4,981 8,936 
Middle East & Africa757 810 1,054 1,359 
Asia-Pacific3,342 1,308 5,841 4,417 
Canada & Latin America159 972 870 3,034 
Total revenue from contracts with customers$6,541 $8,312 $14,814 $21,039 
As of October 31, 2020, and January 31, 2020, contract assets and liabilities consisted of the following:
October 31, 2020January 31, 2020
Contract Assets:(in thousands)
Unbilled revenue - current$7 $13 
Total unbilled revenue$7 $13 
Contract Liabilities:
Deferred revenue & customer deposits - current$304 $220 
Deferred revenue & customer deposits - non-current 12 
Total deferred revenue & customer deposits$304 $232 
Considering the products manufactured and sold by the businesses in our Marine Technology Products segment and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a period of three to six months.
Pursuant to practical expedients and exemptions included in ASU 2014-09, Revenue from Contracts with Customers, sales and transaction-based taxes are excluded from revenue. Also, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, we expense costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses.
6. Balance Sheet
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