Argan (AGX) 10-Q 9 Jun 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2020	Jun. 05, 2020
Document And Entity Information
Entity Registrant Name	ARGAN INC
Entity Central Index Key	0000100591
Document Type	10-Q
Document Period End Date	Apr. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,649,969
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
REVENUES	$ 60,148	$ 49,544
Cost of revenues	56,139	70,570
GROSS PROFIT (LOSS) (Note 2)	4,009	(21,026)
Selling, general and administrative expenses	10,344	9,588
Impairment loss		2,072
LOSS FROM OPERATIONS	(6,335)	(32,686)
Other income, net	1,088	2,252
LOSS BEFORE INCOME TAXES	(5,247)	(30,434)
Income tax benefit (Note 10)	4,454	521
NET LOSS	(793)	(29,913)
Net loss attributable to non-controlling interests	(30)	(113)
NET LOSS ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	(763)	(29,800)
Foreign currency translation adjustments	(246)	(1,054)
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	$ (1,009)	$ (30,854)
NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Note 11)
Basic (in Dollars per share)	$ (0.05)	$ (1.91)
Diluted (in Dollars per share)	$ (0.05)	$ (1.91)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic (in shares)	15,643	15,583
Diluted (in shares)	15,643	15,583
CASH DIVIDENDS PER SHARE (Note 12)	$ 0.25	$ 0.25

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2020	Jan. 31, 2020
CURRENT ASSETS
Cash and cash equivalents	$ 262,927	$ 167,363
Short-term investments	100,617	160,499
Accounts receivable, net	22,212	37,192
Contract assets	33,035	33,379
Other current assets	36,945	23,322
TOTAL CURRENT ASSETS	455,736	421,755
Property, plant and equipment, net	22,124	22,539
Goodwill	27,943	27,943
Other purchased intangible assets, net	4,776	5,001
Deferred taxes		7,894
Right-of-use and other assets	2,385	2,408
TOTAL ASSETS	512,964	487,540
LIABILITIES AND EQUITY CURRENT LIABILITIES
Accounts payable	34,322	35,442
Accrued expenses (Note 10)	28,959	35,907
Contract liabilities	109,825	72,685
TOTAL CURRENT LIABILITIES	173,106	144,034
Deferred taxes	320
Other noncurrent liabilities	2,638	2,476
TOTAL LIABILITIES	176,064	146,510
COMMITMENTS AND CONTINGENCIES (Notes 7 and 8)
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.10 per share - 500,000 shares authorized; no shares issued and outstanding
Common stock, par value $0.15 per share - 30,000,000 shares authorized; 15,648,202 and 15,638,202 shares issued at April 30 and January 31, 2020, respectively; 15,644,969 and 15,634,969 shares outstanding at April 30 and January 31, 2020, respectively	2,347	2,346
Additional paid-in capital	149,531	148,713
Retained earnings	184,633	189,306
Accumulated other comprehensive loss	(1,362)	(1,116)
TOTAL STOCKHOLDERS' EQUITY	335,149	339,249
Non-controlling interests	1,751	1,781
TOTAL EQUITY	336,900	341,030
TOTAL LIABILITIES AND EQUITY	$ 512,964	$ 487,540

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 30, 2020	Jan. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.15	$ 0.15
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	15,648,202	15,638,202
Common stock, shares outstanding	15,644,969	15,634,969

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non-controlling Interests	Total
Balances at Jan. 31, 2019	$ 2,337	$ 144,961	$ 247,616	$ (346)	$ (196)	$ 394,372
Balances (in shares) at Jan. 31, 2019	15,573,869
Net loss			(29,800)		(113)	(29,913)
Foreign currency translation loss				(1,054)		(1,054)
Stock compensation expense		413				413
Stock option exercises	$ 9	1,558				$ 1,567
Stock option exercises (in shares)	59,433					59,000
Cash dividends			(3,895)			$ (3,895)
Balances at Apr. 30, 2019	$ 2,346	146,932	213,921	(1,400)	(309)	361,490
Balances (in shares) at Apr. 30, 2019	15,633,302
Balances at Jan. 31, 2020	$ 2,346	148,713	189,306	(1,116)	1,781	341,030
Balances (in shares) at Jan. 31, 2020	15,634,969
Net loss			(763)		(30)	(793)
Foreign currency translation loss				(246)		(246)
Stock compensation expense		642				642
Stock option exercises	$ 1	176				$ 177
Stock option exercises (in shares)	10,000					10,000
Cash dividends			(3,910)			$ (3,910)
Balances at Apr. 30, 2020	$ 2,347	$ 149,531	$ 184,633	$ (1,362)	$ 1,751	$ 336,900
Balances (in shares) at Apr. 30, 2020	15,644,969

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (793)	$ (29,913)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Deferred income tax expense	8,214	259
Impairment loss		2,072
Depreciation	937	829
Stock compensation expense	642	413
Change in accrued interest on short-term investments	(118)	(163)
Amortization of purchased intangible assets	225	299
Other	446	188
Changes in operating assets and liabilities
Accounts receivable	14,980	(12,049)
Contract assets	344	9,821
Other assets	(13,600)	3,808
Accounts payable and accrued expenses	(8,230)	(10,497)
Contract liabilities	37,140	(1,449)
Net cash provided by (used in) operating activities	40,187	(36,382)
CASH FLOWS FROM INVESTING ACTIVITIES
Maturities of short-term investments	70,000	44,000
Purchases of short-term investments	(10,000)	(35,000)
Purchases of property, plant and equipment	(684)	(1,985)
Net cash provided by investing activities	59,316	7,015
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of cash dividends	(3,910)	(3,895)
Proceeds from the exercise of stock options	177	1,567
Net cash used in financing activities	(3,733)	(2,328)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH	(206)	(235)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	95,564	(31,930)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	167,363	164,318
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 262,927	$ 132,388

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Apr. 30, 2020
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	NOTE 1 – DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Description of the Business Argan, Inc. (“Argan”) conducts operations through its wholly-owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”); The Roberts Company, Inc. (“TRC”); Atlantic Projects Company Limited and affiliates (“APC”) and Southern Maryland Cable, Inc. (“SMC”). Argan and these consolidated subsidiaries are hereinafter collectively referred to as the “Company.” Through GPS and APC, the Company provides a full range of engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical and other consulting services to the power generation market, including the renewable energy sector. The wide range of customers includes independent power producers, public utilities, power plant equipment suppliers and global energy plant construction firms with projects located in the continental United States (the "US"), the Republic of Ireland ("Ireland") and the United Kingdom (the "UK"). Including consolidated variable interest entities (“VIEs”), GPS and APC represent the Company’s power industry services reportable segment. Through TRC, the industrial fabrication and field services reportable segment provides on-site services that support maintenance turnarounds, shutdowns and emergency mobilizations for industrial plants primarily located in the southeast region of the US and that are based on its expertise in producing, delivering and installing fabricated steel components such as piping systems and pressure vessels. Through SMC, which conducts business as SMC Infrastructure Solutions, the telecommunications infrastructure services segment provides project management, construction, installation and maintenance services to commercial, local government and federal government customers primarily in the mid-Atlantic region of the US. Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries and its financially controlled VIEs. All significant inter-company balances and transactions have been eliminated in consolidation. In Note 14, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 of each year. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the US Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements, the notes thereto, and the independent registered public accounting firm’s report thereon, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2020 ("Fiscal 2020"). The condensed consolidated balance sheet as of April 30, 2020, the condensed consolidated statements of earnings and stockholders’ equity for the three months ended April 30, 2020 and 2019, and the condensed consolidated statements of cash flows for the three months ended April 30, 2020 and 2019 are unaudited. The condensed consolidated balance sheet as of January 31, 2020 has been derived from audited financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, considered necessary to present fairly the financial position of the Company as of April 30, 2020, and its earnings and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Accounting Policies In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes , which, among other changes, eliminates the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the expected loss for the entire year. In these instances, the estimated annual effective income tax rate shall be used to calculate the tax without limitation. The new standard also requires the recognition of a franchise (or similar) tax that is partially based on income as an income-based tax and the recording of any incremental tax that is incurred by the Company as a non-income based tax. The requirements of this new guidance, effective for the Company on February 1, 2021, are not expected to alter the Company's current accounting for income taxes. In 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The requirements of this new standard cover, among other provisions, the methods that businesses shall use to estimate amounts of uncollectible notes and accounts receivable. Adoption of this new guidance, which became effective for the Company on February 1, 2020, did not affect the Company's consolidated financial statements. There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its consolidated financial statements. The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s current assets, which primarily include cash and cash equivalents, short-term investments, accounts receivable and contract assets, and its current liabilities are reasonable estimates of their fair values due to the short-term nature of these items. Variable Interest Entity In January 2018, the Company was deemed to be the primary beneficiary of a VIE that is performing the project development activities related to the planned construction of a new natural gas-fired power plant. Consideration for the Company’s engineering and financial support includes the right to build the power plant pursuant to a turnkey engineering, procurement and construction ("EPC") services contract that has been negotiated and announced. The account balances of the VIE are included in the condensed consolidated financial statements, including development costs incurred by the VIE during the three -month periods ended April 30, 2020 and 2019. The total amounts of the project development costs included in the balances for property, plant and equipment as of April 30 and January 31, 2020 were $7.1 million and $6.9 million, respectively.

REVENUES FROM CONTRACT WITH CUS

REVENUES FROM CONTRACT WITH CUSTOMERS	3 Months Ended
	Apr. 30, 2020
REVENUES FROM CONTRACT WITH CUSTOMERS
REVENUES FROM CONTRACT WITH CUSTOMERS	NOTE 2 – REVENUES FROM CONTRACT WITH CUSTOMERS The Company's recognition of revenues under contracts with customers is based on a single comprehensive five-step model that requires reporting entities to: 1. Identify the contract, 2. Identify the performance obligations of the contract, 3. Determine the transaction price of the contract, 4. Allocate the transaction price to the performance obligations, and 5. Recognize revenue. Major provisions of the standard cover the determination of which goods and services are distinct and represent separate performance obligations, the evaluation of whether revenues should be recognized at a point in time or over time , and the appropriate treatment for variable consideration. The Company’s revenues are recognized primarily under various types of long-term construction contracts, including those for which revenues are based on either a fixed-price or a time-and-materials basis, and primarily recognized over time as performance obligations are satisfied due to the continuous transfer of control to the project owner or other customer. Revenues from fixed-price contracts, including a portion of estimated gross profit, are recognized as services are provided, based on costs incurred and estimated total contract costs using the percentage-of-completion method. If, at any time, the estimate of contract profitability indicates an anticipated loss on a contract, the Company will recognize the total loss in the reporting period that it is identified and an amount is estimable. Revenues from time-and-materials contracts are recognized when the related services are provided to the customer. Almost all of the Company’s fixed-price contracts are considered to have a single performance obligation. Although multiple promises to transfer individual goods or services may exist, they are not typically distinct within the context of such contracts because contract promises included therein are interrelated or the contracts require the Company to perform critical integration so that the customer receives a completed project. The Company’s accounting for its assurance-type warranties provided under contracts with customers is conducted in accordance with the specific professional guidance established to cover such arrangements. The transaction price for a contract represents the accounting value of the contract awarded to the Company that is used to determine the amount of revenues recognized as of the balance sheet date. It may reflect amounts of variable consideration, which could be either increases or decreases to the transaction price. These adjustments can be made from time-to-time during the period of contract performance as circumstances evolve related to such items as changes in the scope and price of contracts, claims, incentives and liquidated damages. Contract assets generally include amounts that represent the rights to receive payment for goods or services that have been transferred to the project owner, with the rights conditional upon something other than the passage of time. Contract liabilities generally include the amounts that reflect obligations to provide goods or services for which payment has been received. The balances of accounts receivable exclude billed amounts which, pursuant to the terms of the applicable contract, are not paid by project owners until a defined phase of a contract or project has been completed and accepted. These retained amounts are reflected in contract assets or contract liabilities depending on the net contract position of the particular contract. Retention amounts and the length of retention periods may vary. Retention amounts related to active contracts are considered current regardless of the term of the applicable contract; such amounts are generally collected by the completion of the applicable contract. The total of amounts retained by project owners under construction contracts at April 30 and January 31, 2020 were $21.0 million and $20.0 million, respectively. Variable Consideration Amounts for contract variations for which the Company has project-owner directive for additional work or other scope change, but not for the price associated with the corresponding additional effort, are included in the transaction price when it is considered probable that the applicable costs will be recovered through a modification to the contract price. The effects of any revision to a transaction price can be determined at any time and they could be material. The Company may include in the corresponding transaction price a portion of the amount claimed in a dispute that it expects to receive from a project owner. Once a settlement of the dispute has been reached with the project owner, the transaction price may be revised again to reflect the final resolution. The aggregate amount of such contract variations included in the transaction prices that were used to determine project-to-date revenues at April 30, 2020 and January 31, 2020 were $21.9 million and $20.6 million, respectively.Variations related to the Company’s contracts typically represent modifications to the existing contracts and performance obligations, and do not represent new performance obligations. Actual costs related to any changes in the scope of the corresponding contract are expensed as they are incurred. Changes to total estimated contract costs and losses, if any, are reflected in operating results for the period in which they are determined. The Company’s long-term contracts typically have schedule dates and other performance objectives that if not achieved could subject the Company to liquidated damages. At the outset of each of the Company’s contracts, the potential amounts of liquidated damages typically are not constrained, or subtracted, from the transaction price as the Company believes that it has included activities in its contract plan, and the associated costs, that will be effective in preventing such damages. Of course, circumstances may change as the Company executes the corresponding contract. The transaction price is reduced by an applicable amount when the Company no longer considers it probable that a future reversal of revenues will not occur when the matter is resolved. The Company considers potential liquidated damages, the costs of other related items and potential mitigating factors in determining the adequacy of its regularly updated estimates of the amounts of gross profit expected to be earned on active projects. The Company records adjustments to revenues and profits on contracts, including those associated with contract variations and estimated cost changes, using a cumulative catch-up method. Under this method, the impact of an adjustment to the amount of revenues recognized to date is recorded in the period that the adjustment is identified. Estimated variable consideration amounts are determined by the Company based primarily on the single most likely amount in the range of possible consideration amounts. Revenues and profits in future periods of contract performance are recognized using the adjusted amounts of transaction price and estimated contract costs. Accounting for a Loss Contract In its Form 10-K Annual Report for the year ended January 31, 2019 (“Fiscal 2019”), the Company disclosed that APC was completing a power-plant construction project in the UK that had encountered significant operational and contractual challenges, and that the consolidated operating results for the year ended January 31, 2019 reflected unfavorable gross profit adjustments related to this project. The disclosure explained that the project progress was behind the schedule originally established for the job and warned that the project may continue to impact consolidated operating results negatively until it reaches completion. Subsequent to the release of the Company’s consolidated financial statements for Fiscal 2019, APC’s estimates of the unfavorable financial impacts of the difficulties on this particular project located in Teesside, England (the “TeesREP” project) escalated substantially. For the three-month period ended April 30, 2019, the Company reversed profit in the amount of $0.7 million that had been recorded in prior periods and recorded a loss related to this project in the amount of $27.6 million. Based on analyses that have been continually updated over the last twelve months, management currently expects that the forecasted costs for the TeesREP project at completion will exceed projected revenues by approximately $36.2 million. The total amount of the expected loss on this project has been reflected in the condensed consolidated financial statements as of April 30, 2020, including $2.7 million in loss that was recorded during the three-month period ended April 30, 2020. The amount of the remaining contract loss reserve as of April 30, 2020 was approximately $4.1 million; the comparable balance at January 31, 2020 was $5.8 million. These balances were included in accrued expenses in the accompanying condensed consolidated balance sheets. The total amounts of accounts receivable and contract assets related to the TeesREP project and included in the condensed consolidated balance sheets were $15.5 million as of April 30, 2020 and $19.2 million as of January 31, 2020. During the fourth quarter of Fiscal 2020, APC and its customer, the EPC services contractor on the TeesREP project, agreed to operational and commercial terms for the completion of the project. This framework generally addressed project schedule, payment terms, scope, performance guarantees and other terms and conditions for reaching substantial completion of APC’s portion of the total project. The framework did not resolve significant past commercial differences which may have to be addressed through applicable dispute resolution mechanisms. Currently, it is not possible to predict precisely how, when and on what terms (if any) the past commercial differences will be resolved. Construction on the TeesREP project was suspended on March 24, 2020 due to the COVID-19 pandemic, pending preparations being made by the contractors and subcontractors to comply with new and evolving government guidance concerning public health protocols. Currently, only a small number of critical maintenance staff remains on site, following all social distancing protocols in compliance with UK central government guidance. At the time of the suspension of work on the TeesREP project, APC had completed approximately 90% of its subcontracted work. The continuing adverse effects of the pandemic on APC’s efforts to complete the TeesREP project may result in additional loss that will be reflected in operating results when identified and quantified. Remaining Unsatisfied Performance Obligations (“RUPO”) The amount of RUPO represents the unrecognized revenue value of active contracts with customers as determined under the revenue recognition rules of US GAAP. Increases to RUPO during a reporting period represent the transaction prices associated with new contracts, as well as additions to the transaction prices of existing contracts. The amounts of such changes may vary significantly each reporting period based on the timing of major new contract awards and the occurrence and assessment of contract variations. At April 30, 2020, the Company had RUPO of $761.8 million. The largest portion of RUPO at any date usually relates to EPC service contracts with typical performance durations of 2 to 3 years. However, the length of certain significant construction projects may exceed three years. The Company estimates that approximately 36% of the RUPO amount at April 30, 2020 will be included in the amount of consolidated revenues that will be recognized during the final three quarters of the fiscal year ending January 31, 2021 (“Fiscal 2021”). Most of the remaining amount of the RUPO at April 30, 2020 is expected to be recognized in revenues over the following two fiscal years. Revenues for future periods will also include amounts related to customer contracts started or awarded subsequent to April 30, 2020. It is important to note that estimates may be changed in the future and that cancellations, deferrals, scope adjustments may occur related to work included in RUPO at April 30, 2020. Accordingly, RUPO may be adjusted to reflect project delays and cancellations, revisions to project scope and cost and foreign currency exchange fluctuations, or to revise estimates, as effects become known. Such adjustments may materially reduce future revenues below Company estimates. Disaggregation of Revenues The following table presents consolidated revenues for the three months ended April 30, 2020 and 2019, disaggregated by the geographic area where the work was performed: Three Months Ended April 30, 2020 2019 United States $ 48,865 $ 39,766 United Kingdom 10,296 5,644 Republic of Ireland 987 4,003 Other — 111 Totals $ 60,148 $ 49,544 Each year, the majority of consolidated revenues are recognized pursuant to fixed-price contracts with most of the remaining portions earned pursuant to time-and-material contracts. Consolidated revenues are disaggregated by reportable segment in Note 14 to the condensed consolidated financial statements.

CASH, CASH EQUIVALENTS AND SHOR

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	3 Months Ended
	Apr. 30, 2020
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	NOTE 3 – CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS At April 30 and January 31, 2020, a significant amount of cash and cash equivalents was invested in a mutual fund with net assets invested in high-quality money market instruments. Such investments include US Treasury obligations; obligations of US government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by US government obligations. The Company considers all liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Short-term investments as of April 30 and January 31, 2020 consisted solely of certificates of deposit purchased from Bank of America (the “Bank”) with weighted average initial maturities of 187 days and 165 days, respectively (the “CDs"). The Company has the intent and ability to hold the CDs until they mature, and they are carried at cost plus accrued interest which approximates fair value. The total carrying value amounts as of April 30 and January 31, 2020 included accrued interest of $0.6 million and $0.5 million, respectively. Interest income is recorded when earned and is included in other income. At April 30 and January 31, 2020, the weighted average annual interest rate of the CDs was 1.8%. In addition, the Company has a substantial portion of its cash on deposit in the US at the Bank in excess of federally insured limits. Management does not believe that the combined amount of the CD investments and the cash deposited with the Bank represents a material risk. The Company also maintain certain Euro-based bank accounts in Ireland and certain pound sterling-based bank accounts in the UK in support of the operations of APC.

ACCOUNTS AND NOTES RECEIVABLE

ACCOUNTS AND NOTES RECEIVABLE	3 Months Ended
	Apr. 30, 2020
ACCOUNTS AND NOTES RECEIVABLE
ACCOUNTS AND NOTES RECEIVABLE	NOTE 4 – ACCOUNTS AND NOTES RECEIVABLE The Company generally extends credit to a customer based on an evaluation of the customer’s financial condition without requiring collateral. Exposure to losses on accounts and notes receivable is expected to differ due to the varying financial condition of each customer. The Company monitors its exposure to credit losses and may establish an allowance for a credit loss based on management’s estimate of the loss that is expected to occur over the remaining life of the particular financial asset. As of April 30, 2020, there were outstanding invoices billed to one former customer and unbilled costs incurred on the related project, with balances included in accounts receivable and contract assets, in the aggregate amount of $24.5 million, for which the recovery time will most likely depend on the resolution of the outstanding legal dispute between the parties (see Note 8). At April 30 and February 1, 2020, the amounts of credit losses expected by management were insignificant. The amounts of the provision for credit losses for the three months ended April 30, 2020 and the provision for uncollectible accounts for the three months ended April 30, 2019 were also insignificant.

PURCHASED INTANGIBLE ASSETS

PURCHASED INTANGIBLE ASSETS	3 Months Ended
	Apr. 30, 2020
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS	NOTE 5 – PURCHASED INTANGIBLE ASSETS Primarily due to the significant reduction of the fair value of the business of APC deemed to have occurred as a result of the substantial contract loss discussed in Note 2 above, the Company recorded an impairment loss in the first quarter ended April 30, 2019 in the amount of $2.1 million, which was the remaining balance of goodwill associated with APC. At both April 30, 2020 and January 31, 2020, the goodwill balances related to the acquisitions of GPS and TRC were $18.5 million and $9.5 million, respectively. No other changes were made to the balances of goodwill during the three-month periods ended April 30, 2020 and 2019. Management does not believe that any events or circumstances that have occurred or arisen since January 31, 2020 required an updated assessment of the goodwill balances of either GPS or TRC. The Company’s purchased intangible assets, other than goodwill, consisted of the following elements as of April 30 and January 31, 2020: April 30, 2020 January 31, Estimated Gross Accumulated Net 2020 (net Useful Life Amount Amortization Amount amount) Trade names 15 years $ 8,142 $ 4,578 $ 3,564 $ 3,699 Process certifications 7 years 1,897 1,197 700 768 Customer relationships 4-10 years 1,346 834 512 534 Totals $ 11,385 $ 6,609 $ 4,776 $ 5,001

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	3 Months Ended
	Apr. 30, 2020
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS	NOTE 6 – FINANCING ARRANGEMENTS The Company maintains financing arrangements with the Bank that are described in an Amended and Restated Replacement Credit Agreement (the “Credit Agreement”), dated May 15, 2017. The Credit Agreement provides a revolving loan with a maximum borrowing amount of $50.0 million that is available until May 31, 2021 with interest at the 30-day London Interbank Offered Rate (“LIBOR”) plus 2.0%. The Company may also use the borrowing ability to cover other credit instruments issued by the Bank for the Company’s use in the ordinary course of business. As of April 30 and January 31, 2020, the Company had credit outstanding under the Credit Agreement, but no borrowings, in the approximate amounts of $9.3 million and $9.9 million, respectively; a little over 70% of the outstanding amount as of April 30, 2020 related to the TeesREP project (see Note 2). Additionally, in support of the current project development activities of the VIE described in Note 1, the Bank issued a letter of credit, outside the scope of the Credit Agreement, in the amount of $3.4 million for which the Company has provided cash collateral. The Company has pledged the majority of its assets to secure its financing arrangements. The Bank’s consent is not required for acquisitions, divestitures, cash dividends or significant investments as long as certain conditions are met. The Bank requires that the Company comply with certain financial covenants at its fiscal year-end and at each of its fiscal quarter-ends. The Credit Agreement also includes other terms, covenants and events of default that are customary for a credit facility of its size and nature. As of April 30 and January 31, 2020, the Company was in compliance with the financial covenants.

COMMITMENTS

COMMITMENTS	3 Months Ended
	Apr. 30, 2020
COMMITMENTS
COMMITMENTS	NOTE 7 – COMMITMENTS Leases The Company determines if a contract is or contains a lease at inception or upon modification of the contract. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The Company does not apply this accounting to those leases with terms of twelve (12) months or less and that do not include options to purchase the underlying assets that the Company is reasonably certain to exercise. The Company’s operating leases primarily cover office space that expire on various dates through May 2024; it has no finance leases. Most of the equipment used by the Company in the performance of its construction services contracts is rented, with periods of expected usage less than one year, or owned. Certain leases contain renewal options, which are included in expected lease terms if they are reasonably certain of being exercised by the Company. Other equipment leases are embedded in broader arrangements with subcontractors or construction equipment suppliers. None of the operating leases include significant amounts for incentives, rent holidays or price escalations. Under certain lease agreements, the Company is obligated to pay property taxes, insurance, and maintenance costs. Operating lease right-of-use assets and associated lease liabilities are recognized in the balance sheet at the lease commencement date based on the present value of future minimum lease payments to be made over the expected lease term. As the implicit rate is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate (LIBOR plus 2)% at the commencement date in determining the present value of future payments. The expected lease term includes an option to extend or to terminate the lease when it is reasonably certain that the Company will exercise such option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term. Operating lease expense amounts for the three months ended April 30, 2020 and 2019 were $0.4 million and $0.2 million, respectively. Operating lease payments for the three months ended April 30, 2020 and 2019 were $0.4 million and $0.2 million, respectively. For operating leases as of April 30, 2020, the weighted average lease term is 33 months and the weighted average discount rate is 4.0%. The following is a schedule of future minimum lease payments for the operating leases that were recognized in the condensed consolidated balance sheet as of April 30, 2020 , including operating leases added during the three months ended April 30, 2020 in the amount of approximately $0.4 million covering certain construction-site assets required by GPS: Years Ending January 31, Remainder of 2021 $ 941 2022 790 2023 344 2024 178 2025 26 Total lease payments 2,279 Less interest portion 123 Present value of lease payments 2,156 Less current portion (included in accrued expenses) 1,593 Non-current portion $ 563 The future minimum lease payments presented above include amounts due under a long-term lease covering the primary offices and plant for TRC with the founder and current chief executive officer of TRC at an annual rate of $0.3 million through April 30, 2021, as well as amounts due under a long-term lease covering the primary offices for APC with several of its former executives at an annual rate of less than $0.1 million through December 31, 2023. The Company also uses equipment and occupies other facilities under short-term rental agreements. Rent expense amounts incurred under operating leases and short-term rental agreements (including portions of the lease expense amounts disclosed above) and included in costs of revenues for the three months ended April 30, 2020 and 2019 were $0.6 million and $1.0 million, respectively. Rent expense incurred under these types of arrangements (including portions of the lease expense amounts disclosed above) and included in selling, general and administrative expenses for the three months ended April 30, 2020 and 2019, was $0.2 million for both periods. Performance Bonds and Guarantees In the normal course of business and for certain major projects, the Company may be required to obtain surety or performance bonding, to cause the issuance of letters of credit, or to provide parent company guarantees (or some combination thereof) in order to provide performance assurances to clients on behalf of its contractor subsidiaries. As these subsidiaries are wholly-owned, any actual liability is ordinarily reflected in the financial statement account balances determined pursuant to the Company’s accounting for contracts with customers. When sufficient information about claims on guaranteed or bonded projects would be available and monetary damages or other costs or losses would be determined to be probable, the Company would record such losses. Any amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress as of April 30, 2020 are not estimable. Argan has provided a parent company performance guarantee and has caused the Bank to issue certain letters of credit (see Note 6) to the EPC services contractor on the TeesREP project, on behalf of APC, a major subcontractor on this project. As of April 30, 2020, the Company has also provided a financial guarantee on behalf of GPS to an original equipment manufacturer in the amount of $3.6 million in support of business developmental efforts which did result in the award of an EPC services contract to GPS for the construction of a gas-fired plant project in March 2020. The fair value of this guarantee at April 30, 2020 is considered to be immaterial. Warranties The Company generally provides assurance-type warranties for work performed under its construction contracts. The warranties cover defects in equipment, materials, design or workmanship, and most warranty periods typically run from nine to twenty-four months after the completion of construction on a particular project. Because of the nature of the Company’s projects, including project owner inspections of the work both during construction and prior to substantial completion, the Company has not experienced material unexpected warranty costs in the past. Warranty costs are estimated based on experience with the type of work and any known risks relative to each completed project. The accruals of liabilities, which are established to cover estimated future warranty costs, are recorded as the contracted work is performed, and they are included in the amounts of accrued expenses in the condensed consolidated balances sheets.The liability amounts may be periodically adjusted to reflect changes in the estimated size and number of expected warranty claims.

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES	3 Months Ended
	Apr. 30, 2020
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES	NOTE 8 – LEGAL CONTINGENCIES In the normal course of business, the Company may also have pending claims and legal proceedings. It is the opinion of management, based on information available at this time, that there are no current claims and proceedings that could have a material adverse effect on the Company’s condensed consolidated financial statements except for the matter described below. In January 2019, GPS filed a lawsuit against Exelon West Medway II, LLC and Exelon Generation Company, LLC (together referred to as “Exelon”) for Exelon’s breach of contract and failure to remedy various conditions which negatively impacted the schedule and the costs associated with the construction by GPS of a gas-fired power plant for Exelon in Massachusetts. As a result, the Company believes that Exelon has received the benefits of the construction efforts of GPS and the corresponding progress made on the project without making payments to GPS for the value received (see Note 4). In March 2019, Exelon provided GPS with a notice intending to terminate the EPC contract under which GPS had been providing services to Exelon. At that time, the construction project was nearly complete and both of the power generation units included in the plant had successfully reached first fire. The completion of various prescribed performance tests and the clearance of punch-list items were the primary tasks necessary to be accomplished by GPS in order to achieve substantial completion of the power plant . Nevertheless, and among other actions, Exelon provided contractual notice requiring GPS to vacate the construction site, asserting that GPS had failed to fulfill certain obligations under the contract and was in default, and has withheld payments from GPS on invoices rendered to Exelon in accordance with the terms of the contract between the parties. With vigor, GPS intends to continue to assert its rights under the EPC contract, to pursue the collection of amounts owed under the EPC contract and to defend itself against the allegations that GPS has not performed in accordance with the contract. During Fiscal 2021, most of the litigation activities of the legal teams has focused on pre-trial preparations. The difficulties being experienced by the legal teams in completing certain discovery activities, due in part to COVID-19 restrictions, may result in the court granting an additional extension of the discovery closing date, which is currently July 31, 2020.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Apr. 30, 2020
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 9 – STOCK-BASED COMPENSATION The Company’s board of directors may make awards under the 2011 Stock Plan (the “2011 Plan”) to officers, directors and key employees. Awards may include nonqualified stock options (“NSOs”), incentive stock options (“ISOs”), and restricted or unrestricted stock. The specific provisions for each award made pursuant to the terms of the 2011 Plan are documented in a written agreement between the Company and the awardee. All stock options awarded under the 2011 Plan shall have an exercise price per share at least equal to the common stock’s market value on the date of grant. Stock options shall have terms no longer than ten years. Typically, stock options are awarded with one-third of each stock option vesting on each of the first three anniversaries of the corresponding award date. As of April 30, 2020, there were approximately 1.7 million shares of the Company’s common stock reserved for issuance under the 2011 Plan; this number includes 166,999 shares of common stock available for future awards. In April 2020, the Company's board of directors approved the Argan, Inc. 2020 Stock Plan (the "2020 Plan"). The activation of the 2020 Plan, and the allocation of 500,000 shares of the Company's common stock for issuance thereunder, also requires the approval of the Company's stockholders which is expected to occur at the Company's 2020 Annual Meeting of Stockholders on June 23, 2020. The features of the 2020 Plan are similar to those included in the 2011 Plan which will expire in July 2021. Summaries of stock option activity under the Company’s approved stock option plans for the three months ended April 30, 2020 and 2019, along with corresponding weighted average per share amounts, are presented below (shares in thousands): Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2020 1,271 $ 44.83 $ 11.06 Granted 172 $ 33.81 Exercised (10) $ 17.67 Forfeited (2) $ 46.35 Outstanding, April 30, 2020 1,431 $ 43.69 $ 10.45 Exercisable, April 30, 2020 874 $ 45.78 $ 11.74 Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2019 1,140 $ 44.01 7.54 $ 11.22 Granted 92 $ 50.30 Exercised (59) $ 26.36 Forfeited (14) $ 51.13 Outstanding, April 30, 2019 1,159 $ 45.34 $ 11.42 Exercisable, April 30, 2019 729 $ 45.90 $ 11.97 The changes in the number of non-vested options to purchase shares of common stock for the three months ended April 30, 2020 and 2019, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2020 448 $ 9.74 Granted 172 $ 5.68 Vested (61) $ 10.21 Forfeited (2) $ 11.68 Non-vested, April 30, 2020 557 $ 8.42 Shares Fair Value Non-vested, February 1, 2019 375 $ 10.05 Granted 92 $ 11.68 Vested (33) $ 8.74 Forfeited (4) $ 11.68 Non-vested, April 30, 2019 430 $ 10.48 Pursuant to the terms of the 2011 Plan and as described in the corresponding written agreements with the executives, the Company awarded performance-based restricted stock units to two senior executives in April 2020, 2019 and 2018 covering 45,000, 36,000 and 36,000 maximum numbers of shares of common stock , respectively, plus a number of shares to be determined based on the amount of cash dividends deemed paid on shares earned pursuant to the awards. The release of the stock restrictions depends on the total return performance of the Company’s common stock measured against the performance of a peer-group of common stocks over three-year periods.The award-date fair value amounts for restricted stock units were determined by using the per share market price of the Company’s common stock on the dates of award and the target number of shares for the awards (50% of the maximum number), by assigning equal probabilities to the thirteen possible payout outcomes at the ends of the three-year vesting periods, and by computing the weighted average of the outcome amounts. For each case, the estimated fair value amount was calculated to be 88.5% of the aggregate market value of the target number of shares on the award date. The fair values of stock options and restricted stock units are recorded as stock compensation expense over the vesting periods of the corresponding awards. Expense amounts related to stock awards were $0.6 million and $0.4 million for the three months ended April 30, 2020 and 2019, respectively. At April 30, 2020, there was $3.6 million in unrecognized compensation cost related to outstanding stock awards that the Company expects to expense over the next three years. The total intrinsic value amounts of the stock options exercised during the three months ended April 30, 2020 and 2019 were $0.3 million and $1.4 million, respectively. At April 30, 2020, the aggregate market value amounts of the shares of common stock subject to outstanding and exercisable stock options that were "in-the-money" exceeded the aggregate exercise prices of such options by $3.4 million and $2.7 million, respectively. The Company estimates the weighted average fair value of stock options on the date of award using a Black-Scholes option pricing model, which was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The Company believes that its past stock option exercise activity is sufficient to provide it with a reasonable basis upon which to estimate the expected life of newly awarded stock options. Risk-free interest rates are determined by blending the rates for three to five year US Treasury notes. The dividend yield is based on the Company's current annual dividend amount. The calculations of the expected volatility factors are based on the monthly closing prices of the Company's common stock for the five-year periods preceding the dates of the corresponding awards. The fair value amounts of stock options granted during the three months ended April 30, 2020 and 2019 were estimated on the corresponding dates of the awards using the Black-Scholes option-pricing model reflecting the following weighted average assumptions: Three Months Ended April 30, 2020 2019 Dividend yield 3.0 % 2.0 % Expected volatility 30.0 % 34.0 % Risk-free interest rate 0.5 % 2.4 % Expected life (in years) 3.4

INCOME TAXES

INCOME TAXES	3 Months Ended
	Apr. 30, 2020
INCOME TAXES
INCOME TAXES	NOTE 10 – INCOME TAXES Income Tax Expense Reconciliation The Company’s income tax amounts for the three months ended April 30, 2020 and 2019 differed from corresponding amounts computed by applying the federal corporate income tax rate of 21% to the loss before income taxes for the periods as presented in the table below. Three Months Ended April 30, 2020 2019 Computed expected income tax benefit $ 1,102 $ 6,391 Differences resulting from: Net operating loss carryback 4,175 — Net operating losses deemed unrealizable (695) (5,316) Foreign tax rate differential (111) (754) Adjustments and other permanent differences (17) 200 Income tax benefit $ 4,454 $ 521 Foreign income tax expense amounts for the three months ended April 30, 2020 and 2019 were not material. A valuation allowance in the amount of $5.3 million was established against the deferred tax asset amount created by the net operating loss of APC’s subsidiary in the UK for the three months ended April 30, 2019. Due to the incurrence of additional loss, the allowance amount was increased by $0.7 million during the three months ended April 30, 2020. Net Operating Loss Carryback In an effort to combat the adverse economic impacts of the COVID-19 crisis, the US Congress passed the Coronavirus, Aid, Relief, and Economic Security Act ( the “CARES Act”) that was signed into law on March 27, 2020. This wide-ranging legislation is an emergency economic stimulus package that includes spending and tax breaks aimed at strengthening the US economy and funding a nationwide effort to curtail the effects of the outbreak of COVID-19. The CARES Act has provided many opportunities for taxpayers to evaluate their 2018 and 2019 income tax returns to identify potential tax refunds. One such area is the utilization of net operating losses (“NOLs”). The tax changes of the CARES Act remove the limitations on the future utilization of certain net operating losses and re-establish a carryback period for certain losses to five years. The net operating losses eligible for carryback under the CARES Act include the Company’s net operating loss for the year ended January 31, 2020, which was approximately $38.5 million. Substantially all of this loss now may be carried back for application against the Company’s taxable income for the year ended January 31, 2015. The carryback provides a favorable rate benefit for the Company as the loss, which was incurred in a year where the statutory federal tax rate was 21%, will be carried back to a tax year where the tax rate was higher. The amount of this benefit, approximately $4.2 million, was recorded in the three-month period ended April 30, 2020. Research and Development Tax Credits During Fiscal 2019, the Company completed a detailed review of the activities of its engineering staff on major EPC services projects in order to identify and quantify the amounts of research and development credits that may be available to reduce prior year income taxes. This study focused on project costs incurred during the three-year period ended January 31, 2018. Based on the results of the study, management identified and estimated significant amounts of income tax benefits that were not previously recognized in the Company’s operating results for any prior year reporting period. The amount of research and development tax credit benefit recognized during the fourth quarter of Fiscal 2019 was $16.2 million. As described below, the IRS is examining the research and development credits that were included in the amendments of the Company’s consolidated federal income tax returns for the years ended January 31, 2016 and 2017 that were filed in January 2019. The Company does not believe that any significant unfavorable changes to its income taxes will arise from the completion of these examinations. The amount of identified but unrecognized income tax benefits related to research and development credits as of April 30, 2020 was $5.0 million, for which the Company has established a liability for uncertain income tax return positions, most of which is included in accrued expenses. The amount of the liability was also $5.0 million as of January 31, 2020. The final outcome of these uncertain tax positions is not yet determinable. However, the Company does not expect that the amount of unrecognized tax benefits will significantly change due to any settlement and/or expiration of statutes of limitation over the next 12 months. As of April 30, 2020, the Company does not believe that it has any other material uncertain income tax positions reflected in its accounts. As of April 30 and January 31, 2020, the balances of other current assets in the condensed consolidated balance sheet included income tax refunds and prepaid income taxes in the net amounts of approximately $21.4 and $14.5 million, respectively. The substantial portions of the income tax refunds are expected to be collected after the completion of the federal tax return examinations described below and the filing of the refund request related to the NOL carryback described above. Income Tax Returns The Company is subject to federal and state income taxes in the US, and income taxes in Ireland and the UK. Tax treatments within each jurisdiction are subject to the interpretation of the related tax laws and regulations which require significant judgment to apply. The Company is no longer subject to income tax examinations by authorities for its fiscal years ended on or before January 31, 2016 except for several notable exceptions including Ireland, the UK and several states where the open periods are one year longer. The IRS conducted an examination of the Company’s original federal consolidated income tax return for the year ended January 31, 2016. The IRS represented to the Company that no unfavorable adjustment items were noted during the examination. However, the Company has consented to an extension of the audit timeline which will enable the IRS to examine the amendment to the income tax return, which includes the research and development credit for the year. In addition, the IRS has commenced an examination of the Company’s amended consolidated income tax return for the year ended January 31, 2017. To date, the Company has provided supporting documentation related to the credits and written responses to certain questions as requested by the IRS. No audit findings have been communicated to the Company yet. Supplemental Cash Flow Information The Company was not required to make any income tax payments during the three months ended April 30, 2020. The amount of cash paid for income taxes during the three months ended April 30, 2019 was $0.5 million. During the three months ended April 30, 2020 and 2019 the Company received cash refunds of previously paid income taxes from various taxing authorities in the total amounts of $0.8 million and $6.1 million, respectively.

NET LOSS PER SHARE ATTRIBUTABLE

NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	3 Months Ended
	Apr. 30, 2020
NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	NOTE 11 – NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. Basic and diluted loss per share are computed as follows (shares in thousands except in note(1) below the charts): Three Months Ended April 30, 2020 2019 Net loss attributable to the stockholders of Argan, Inc. $ (763) $ (29,800) Weighted average number of shares outstanding - basic 15,643 15,583 Effects of stock awards (1) — — Weighted average number of shares outstanding - diluted 15,643 15,583 Net loss per share attributable to the stockholders of Argan, Inc. Basic $ (0.05) $ (1.91) Diluted $ (0.05) $ (1.91) (1) For the three months ended April 30, 2020 and 2019,all common stock equivalents, which covered 1,483,151 and 1,190,913 shares of common stock, respectively, were considered to be antidilutive as the Company incurred a net loss for each period.

CASH DIVIDENDS

CASH DIVIDENDS	3 Months Ended
	Apr. 30, 2020
CASH DIVIDENDS
CASH DIVIDENDS	NOTE 12 – CASH DIVIDENDS The Company’s board of directors declared a regular quarterly cash dividend of $0.25 per share of common stock on April 9, 2020, which was paid on April 30, 2020 to stockholders of record on April 22, 2020. During the three-month period ended April 30, 2019, the board of directors declared a regular quarterly cash dividend of $0.25 per share of common stock, which was paid on April 30, 2019.

CUSTOMER CONCENTRATIONS

CUSTOMER CONCENTRATIONS	3 Months Ended
	Apr. 30, 2020
CUSTOMER CONCENTRATIONS
CUSTOMER CONCENTRATIONS	NOTE 13 – CUSTOMER CONCENTRATIONS The majority of the Company’s consolidated revenues relate to performance by the power industry services segment which provided 81% and 41% of consolidated revenues for the three months ended April 30, 2020 and 2019, respectively. The industrial services segment represented 16% and 55% of consolidated revenues for the three months ended April 30, 2020 and 2019, respectively. The Company’s most significant customer relationships for the three months ended April 30, 2020 included two power industry service customers, which accounted for 61% and 17% of consolidated revenues, respectively. The Company’s most significant customer relationships for the three months ended April 30, 2019 included two power industry service customers which accounted for 17% and 14% of consolidated revenues, respectively. The accounts receivable balance from one major customer represented 33% of the corresponding consolidated balance as of April 30, 2020, and accounts receivable balances from three major customers represented 24%, 21% and 12% of the corresponding consolidated balance as of January 31, 2020. Invoiced amounts retained by three project owners were $10.3 million, $5.9 million and $4.0 million as of April 30, 2020, respectively, which in the aggregate represented 96% of the total customer retention amount at that date. Amounts retained by three project owners were $6.5 million, $5.9 million and $4.0 million as of January 31, 2020, respectively, which in the aggregate represented 82% of the total customer retention amount at that date. Retained amounts may be included in contract assets or reflected as contract liability reductions, depending on individual customer contract positions, as described in Note 2.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Apr. 30, 2020
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 14 – SEGMENT REPORTING Segments represent components of an enterprise for which discrete financial information is available that is evaluated regularly by the Company’s chief executive officer, who is the chief operating decision maker, in determining how to allocate resources and in assessing performance. The Company’s reportable segments recognize revenues and incur expenses, are organized in separate business units with different management teams, customers, talents and services, and may include more than one operating segment. Intersegment revenues and the related cost of revenues are netted against the corresponding amounts of the segment receiving the intersegment services. For the three months ended April 30, 2020 and 2019, intersegment revenues totaled approximately $0.6 million and $0.5 million, respectively. Summarized below are certain operating results and financial position data of the Company’s reportable business segments for the three months ended April 30, 2020 and 2019. The “Other” column in each summary includes the Company’s corporate expenses. Three Months Ended Power Industrial Telecom April 30, 2020 Services Services Services Other Totals Revenues $ 48,612 $ 9,744 $ 1,792 $ — $ 60,148 Cost of revenues 45,710 8,982 1,447 — 56,139 Gross profit 2,902 762 345 — 4,009 Selling, general and administrative expenses 5,928 2,123 488 1,805 10,344 Loss from operations (3,026) (1,361) (143) (1,805) (6,335) Other income, net 1,024 — — 64 1,088 Loss before income taxes $ (2,002) $ (1,361) $ (143) $ (1,741) (5,247) Income tax benefit 4,454 Net loss $ (793) Amortization of intangible assets $ 60 $ 165 $ — $ — $ 225 Depreciation 170 667 99 1 937 Property, plant and equipment additions 380 210 94 — 684 Current assets $ 316,753 $ 22,916 $ 2,434 $ 113,633 $ 455,736 Current liabilities 163,674 8,184 793 455 173,106 Goodwill 18,476 9,467 — — 27,943 Total assets 348,577 46,411 4,013 113,963 512,964 Three Months Ended Power Industrial Telecom April 30, 2019 Services Services Services Other Totals Revenues $ 20,203 $ 27,069 $ 2,272 $ — $ 49,544 Cost of revenues 44,526 24,271 1,773 — 70,570 Gross (loss) profit (24,323) 2,798 499 — (21,026) Selling, general and administrative expenses 5,646 1,861 511 1,570 9,588 Impairment loss 2,072 — — — 2,072 (Loss) income from operations (32,041) 937 (12) (1,570) (32,686) Other income, net 2,100 — — 152 2,252 (Loss) income before income taxes $ (29,941) $ 937 $ (12) $ (1,418) (30,434) Income tax benefit 521 Net loss $ (29,913) Amortization of intangible assets $ 87 $ 166 $ 46 $ — $ 299 Depreciation 168 560 100 1 829 Property, plant and equipment additions 1,062 815 97 11 1,985 Current assets $ 281,759 $ 33,315 $ 2,893 $ 55,194 $ 373,161 Current liabilities 52,829 16,909 619 669 71,026 Goodwill 18,476 12,290 — — 30,766 Total assets 310,354 61,893 4,569 56,345 433,161

DESCRIPTION OF THE BUSINESS A_2

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Apr. 30, 2020
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION
Description of the Business	Description of the Business Argan, Inc. (“Argan”) conducts operations through its wholly-owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”); The Roberts Company, Inc. (“TRC”); Atlantic Projects Company Limited and affiliates (“APC”) and Southern Maryland Cable, Inc. (“SMC”). Argan and these consolidated subsidiaries are hereinafter collectively referred to as the “Company.” Through GPS and APC, the Company provides a full range of engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical and other consulting services to the power generation market, including the renewable energy sector. The wide range of customers includes independent power producers, public utilities, power plant equipment suppliers and global energy plant construction firms with projects located in the continental United States (the "US"), the Republic of Ireland ("Ireland") and the United Kingdom (the "UK"). Including consolidated variable interest entities (“VIEs”), GPS and APC represent the Company’s power industry services reportable segment. Through TRC, the industrial fabrication and field services reportable segment provides on-site services that support maintenance turnarounds, shutdowns and emergency mobilizations for industrial plants primarily located in the southeast region of the US and that are based on its expertise in producing, delivering and installing fabricated steel components such as piping systems and pressure vessels. Through SMC, which conducts business as SMC Infrastructure Solutions, the telecommunications infrastructure services segment provides project management, construction, installation and maintenance services to commercial, local government and federal government customers primarily in the mid-Atlantic region of the US.
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries and its financially controlled VIEs. All significant inter-company balances and transactions have been eliminated in consolidation. In Note 14, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 of each year. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the US Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements, the notes thereto, and the independent registered public accounting firm’s report thereon, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2020 ("Fiscal 2020"). The condensed consolidated balance sheet as of April 30, 2020, the condensed consolidated statements of earnings and stockholders’ equity for the three months ended April 30, 2020 and 2019, and the condensed consolidated statements of cash flows for the three months ended April 30, 2020 and 2019 are unaudited. The condensed consolidated balance sheet as of January 31, 2020 has been derived from audited financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, considered necessary to present fairly the financial position of the Company as of April 30, 2020, and its earnings and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Accounting Policies In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes , which, among other changes, eliminates the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the expected loss for the entire year. In these instances, the estimated annual effective income tax rate shall be used to calculate the tax without limitation. The new standard also requires the recognition of a franchise (or similar) tax that is partially based on income as an income-based tax and the recording of any incremental tax that is incurred by the Company as a non-income based tax. The requirements of this new guidance, effective for the Company on February 1, 2021, are not expected to alter the Company's current accounting for income taxes. In 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The requirements of this new standard cover, among other provisions, the methods that businesses shall use to estimate amounts of uncollectible notes and accounts receivable. Adoption of this new guidance, which became effective for the Company on February 1, 2020, did not affect the Company's consolidated financial statements. There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its consolidated financial statements. The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s current assets, which primarily include cash and cash equivalents, short-term investments, accounts receivable and contract assets, and its current liabilities are reasonable estimates of their fair values due to the short-term nature of these items.
Variable Interest Entity	Variable Interest Entity In January 2018, the Company was deemed to be the primary beneficiary of a VIE that is performing the project development activities related to the planned construction of a new natural gas-fired power plant. Consideration for the Company’s engineering and financial support includes the right to build the power plant pursuant to a turnkey engineering, procurement and construction ("EPC") services contract that has been negotiated and announced. The account balances of the VIE are included in the condensed consolidated financial statements, including development costs incurred by the VIE during the three -month periods ended April 30, 2020 and 2019. The total amounts of the project development costs included in the balances for property, plant and equipment as of April 30 and January 31, 2020 were $7.1 million and $6.9 million, respectively.

REVENUES FROM CONTRACT WITH C_2

REVENUES FROM CONTRACT WITH CUSTOMERS (Tables)	3 Months Ended
	Apr. 30, 2020
REVENUES FROM CONTRACT WITH CUSTOMERS
Schedule of consolidated revenues disaggregated by geographical area	Three Months Ended April 30, 2020 2019 United States $ 48,865 $ 39,766 United Kingdom 10,296 5,644 Republic of Ireland 987 4,003 Other — 111 Totals $ 60,148 $ 49,544

PURCHASED INTANGIBLE ASSETS (Ta

PURCHASED INTANGIBLE ASSETS (Tables)	3 Months Ended
	Apr. 30, 2020
PURCHASED INTANGIBLE ASSETS
Schedule of company's purchased intangible assets, other than goodwill	April 30, 2020 January 31, Estimated Gross Accumulated Net 2020 (net Useful Life Amount Amortization Amount amount) Trade names 15 years $ 8,142 $ 4,578 $ 3,564 $ 3,699 Process certifications 7 years 1,897 1,197 700 768 Customer relationships 4-10 years 1,346 834 512 534 Totals $ 11,385 $ 6,609 $ 4,776 $ 5,001

COMMITMENTS (Tables)

COMMITMENTS (Tables)	3 Months Ended
	Apr. 30, 2020
COMMITMENTS
Schedule of future minimum lease payments for the operating leases	Years Ending January 31, Remainder of 2021 $ 941 2022 790 2023 344 2024 178 2025 26 Total lease payments 2,279 Less interest portion 123 Present value of lease payments 2,156 Less current portion (included in accrued expenses) 1,593 Non-current portion $ 563

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Apr. 30, 2020
STOCK-BASED COMPENSATION
Schedule of stock option activity under the Company's stock plans	Summaries of stock option activity under the Company’s approved stock option plans for the three months ended April 30, 2020 and 2019, along with corresponding weighted average per share amounts, are presented below (shares in thousands): Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2020 1,271 $ 44.83 $ 11.06 Granted 172 $ 33.81 Exercised (10) $ 17.67 Forfeited (2) $ 46.35 Outstanding, April 30, 2020 1,431 $ 43.69 $ 10.45 Exercisable, April 30, 2020 874 $ 45.78 $ 11.74 Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2019 1,140 $ 44.01 7.54 $ 11.22 Granted 92 $ 50.30 Exercised (59) $ 26.36 Forfeited (14) $ 51.13 Outstanding, April 30, 2019 1,159 $ 45.34 $ 11.42 Exercisable, April 30, 2019 729 $ 45.90 $ 11.97
Schedule of changes in the number of non-vested options to purchase shares of common stock	The changes in the number of non-vested options to purchase shares of common stock for the three months ended April 30, 2020 and 2019, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2020 448 $ 9.74 Granted 172 $ 5.68 Vested (61) $ 10.21 Forfeited (2) $ 11.68 Non-vested, April 30, 2020 557 $ 8.42 Shares Fair Value Non-vested, February 1, 2019 375 $ 10.05 Granted 92 $ 11.68 Vested (33) $ 8.74 Forfeited (4) $ 11.68 Non-vested, April 30, 2019 430 $ 10.48
Summary of assumptions used to estimate fair value of stock options granted	Three Months Ended April 30, 2020 2019 Dividend yield 3.0 % 2.0 % Expected volatility 30.0 % 34.0 % Risk-free interest rate 0.5 % 2.4 % Expected life (in years) 3.4

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Apr. 30, 2020
INCOME TAXES
Schedule of actual income tax expense amounts	Three Months Ended April 30, 2020 2019 Computed expected income tax benefit $ 1,102 $ 6,391 Differences resulting from: Net operating loss carryback 4,175 — Net operating losses deemed unrealizable (695) (5,316) Foreign tax rate differential (111) (754) Adjustments and other permanent differences (17) 200 Income tax benefit $ 4,454 $ 521

NET LOSS PER SHARE ATTRIBUTAB_2

NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Tables)	3 Months Ended
	Apr. 30, 2020
NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Schedule of computations of basic and diluted loss per share	Basic and diluted loss per share are computed as follows (shares in thousands except in note(1) below the charts): Three Months Ended April 30, 2020 2019 Net loss attributable to the stockholders of Argan, Inc. $ (763) $ (29,800) Weighted average number of shares outstanding - basic 15,643 15,583 Effects of stock awards (1) — — Weighted average number of shares outstanding - diluted 15,643 15,583 Net loss per share attributable to the stockholders of Argan, Inc. Basic $ (0.05) $ (1.91) Diluted $ (0.05) $ (1.91) (1) For the three months ended April 30, 2020 and 2019,all common stock equivalents, which covered 1,483,151 and 1,190,913 shares of common stock, respectively, were considered to be antidilutive as the Company incurred a net loss for each period.

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Apr. 30, 2020	Jan. 31, 2020
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION
Cost of property, plant and equipment	$ 7.1	$ 6.9

REVENUES FROM CONTRACT WITH C_3

REVENUES FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Millions	Apr. 30, 2020	Jan. 31, 2020
REVENUES FROM CONTRACT WITH CUSTOMERS
Retained amounts by project owners	$ 21	$ 20
Amounts of unpriced change orders included in transaction prices	21.9	20.6

REVENUES FROM CONTRACT WITH C_4

REVENUES FROM CONTRACT WITH CUSTOMERS - Accounting for a Loss Contract (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Jan. 31, 2020	Mar. 24, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Provision for contract loss	$ 4.1		$ 5.8
TeesREPProject
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Reversal of profit		$ 0.7
Loss recorded	2.7	$ 27.6
Excess of projected project costs over projected project revenues	36.2
The total amounts of accounts receivable and contract assets with the customer	$ 15.5		$ 19.2
Percentage of completion of subcontracted work				90.00%

REVENUES FROM CONTRACT WITH C_5

REVENUES FROM CONTRACT WITH CUSTOMERS - Remaining Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-01 $ in Millions	Apr. 30, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract backlog amount	$ 761.8
Contract backlog (as percent)	36.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	9 months

REVENUES FROM CONTRACT WITH C_6

REVENUES FROM CONTRACT WITH CUSTOMERS - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Disaggregation of Revenues
Totals	$ 60,148	$ 49,544
United States
Disaggregation of Revenues
Totals	48,865	39,766
United Kingdom
Disaggregation of Revenues
Totals	10,296	5,644
Republic of Ireland
Disaggregation of Revenues
Totals	987	4,003
Other
Disaggregation of Revenues
Totals	$ 0	$ 111

CASH, CASH EQUIVALENTS AND SH_2

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - Held-to-maturity Securities - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Apr. 30, 2020	Jan. 31, 2020
Cash and Cash Equivalents
Maturity period	187 days	165 days
Accrued interest on held-to-maturity securities	$ 0.6	$ 0.5
Weighted average annual interest rates of CDs (as a percent)	1.80%	1.80%

ACCOUNTS AND NOTES RECEIVABLE (

ACCOUNTS AND NOTES RECEIVABLE (Details) $ in Millions	Apr. 30, 2020USD ($)
ACCOUNTS AND NOTES RECEIVABLE
Outstanding balances of accounts receivable and contract assets	$ 24.5

PURCHASED INTANGIBLE ASSETS - G

PURCHASED INTANGIBLE ASSETS - Goodwill and Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Jan. 31, 2020
Indefinite-Lived Intangible Assets
Goodwill	$ 27,943	$ 30,766	$ 27,943
Impairment loss		2,072
Finite Lived Intangible Assets - Gross Carrying Amount	11,385
Accumulated Amortization	6,609
Finite Lived Intangible Assets - Net Amount	4,776		5,001
APC
Indefinite-Lived Intangible Assets
Impairment loss		$ 2,100
GPS/TRC
Indefinite-Lived Intangible Assets
Goodwill	$ 18,500		9,500
Trade names
Indefinite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	15 years
Finite Lived Intangible Assets - Gross Carrying Amount	$ 8,142
Accumulated Amortization	4,578
Finite Lived Intangible Assets - Net Amount	$ 3,564		3,699
Process certifications
Indefinite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	7 years
Finite Lived Intangible Assets - Gross Carrying Amount	$ 1,897
Accumulated Amortization	1,197
Finite Lived Intangible Assets - Net Amount	700		768
Customer relationships
Indefinite-Lived Intangible Assets
Finite Lived Intangible Assets - Gross Carrying Amount	1,346
Accumulated Amortization	834
Finite Lived Intangible Assets - Net Amount	$ 512		$ 534
Customer relationships | Maximum
Indefinite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	10 years
Customer relationships | Minimum
Indefinite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	4 years

FINANCING ARRANGEMENTS (Details

FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions	May 15, 2017	Apr. 30, 2020	Jan. 31, 2020
Financing Arrangements
Amount of an outstanding letter of credit issued by Bank in support of project development activities and deposited with the Bank as collateral		$ 3.4
London Interbank Offered Rate (LIBOR)
Financing Arrangements
Interest rate margin on referred rate		2.00%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Financing Arrangements
Variable rate	30-day LIBOR
Interest rate margin on referred rate	2.00%
Revolving Credit Facility | Expires on May 31, 2021
Financing Arrangements
Borrowing available under financing arrangements	$ 50
Letter of Credit
Financing Arrangements
Borrowings outstanding under Bank financing arrangements		$ 0	$ 0
Letters of credit outstanding amount		$ 9.3	$ 9.9
TeesREPProject | Letter of Credit
Financing Arrangements
The percentage of the total letter of credits outstanding		70.00%

COMMITMENTS - Future minimum le

COMMITMENTS - Future minimum lease payments (Details) $ in Thousands	Apr. 30, 2020USD ($)
Operating Leases
Remainder of 2021	$ 941
2022	790
2023	344
2024	178
2025	26
Total lease payments	2,279
Less interest portion	123
Present value of lease payments	2,156
Less current portion (included in accrued expenses)	$ 1,593
Less current portion (included in accrued expenses)	us-gaap:AccruedLiabilitiesCurrent
Non-current portion	$ 563

COMMITMENTS - Warranties (Detai

COMMITMENTS - Warranties (Details)	3 Months Ended
	Apr. 30, 2020
Minimum
Warranty period	9 months
Maximum
Warranty period	24 months

COMMITMENTS - Leases (Details)

COMMITMENTS - Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Operating leases, options to extend	true
Operating leases, options to terminate	true
Operating lease expense	$ 400	$ 200
Weighted average lease term	33 months
Weighted average discount rate	4.00%
Future minimum lease payment	$ 2,279
Operating lease payments	400	200
December 31, 2023	$ 344
London Interbank Offered Rate (LIBOR)
Interest rate margin on referred rate	2.00%
TRC
April 30, 2021	$ 300
APC
December 31, 2023	100
GPS
Future minimum lease payment	400
GPS | Financial guarantee
Guarantor obligation maximum exposure	3,600
Costs of Revenues
Rent expense	600	1,000
Selling, General and Administrative Expenses
Rent expense	$ 200	$ 200

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands	3 Months Ended
	Apr. 30, 2020	Jan. 31, 2020	Apr. 30, 2019	Jan. 31, 2019
STOCK-BASED COMPENSATION
Shares, Outstanding, Beginning balance	1,271		1,140
Shares, Granted	172		92
Shares, Exercised	(10)		(59)
Shares, Forfeited	(2)		(14)
Shares, Outstanding, Ending balance	1,431	1,271	1,159	1,140
Shares, Exercisable	874		729
Weighted Average Exercise Price, Outstanding, Beginning balance	$ 44.83		$ 44.01
Weighted Average Exercise Price, Granted	33.81		50.30
Weighted Average Exercise Price, Exercised	17.67		26.36
Weighted Average Exercise Price, Forfeited	46.35		51.13
Weighted Average Exercise Price, Outstanding, Ending balance	43.69	$ 44.83	45.34	$ 44.01
Weighted Average Exercise Price, Exercisable	$ 45.78		$ 45.90
Weighted Average Remaining Term (Years), Outstanding	7 years 3 months 29 days	7 years 2 months 5 days	7 years 7 months 21 days	7 years 6 months 15 days
Weighted Average Remaining Term (Years), Exercisable	6 years 2 months 1 day		6 years 8 months 1 day
Weighted Average Fair Value, Outstanding	$ 10.45	$ 11.06	$ 11.42	$ 11.22
Weighted Average Fair Value, Exercisable	$ 11.74		$ 11.97

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of Change in Number of Non-Vested Options to Purchase Shares of Common Stock (Details) - $ / shares shares in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
STOCK-BASED COMPENSATION
Shares, Non-vested, Beginning balance	448	375
Shares, Granted	172	92
Shares, Vested	(61)	(33)
Shares, Forfeitures	(2)	(4)
Shares, Non-vested, Ending balance	557	430
Weighted Average Fair Value, Non-vested, Beginning balance	$ 9.74	$ 10.05
Weighted Average Fair Value, Granted	5.68	11.68
Weighted Average Fair Value, Vested	10.21	8.74
Weighted Average Fair Value, Forfeitures	11.68	11.68
Weighted Average Fair Value, Non-vested, Ending balance	$ 8.42	$ 10.48

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) - Stock Options Plans	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award
Dividend yield	3.00%	2.00%
Expected volatility	30.00%	34.00%
Risk-free interest rate	0.50%	2.40%
Expected life (in years)	3 years 4 months 24 days	3 years 3 months 18 days

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) $ in Thousands	1 Months Ended		3 Months Ended			12 Months Ended	13 Months Ended
	Apr. 30, 2020USD ($)personshares	Apr. 30, 2019person	Apr. 30, 2020USD ($)shares	Apr. 30, 2019USD ($)shares	Apr. 30, 2018shares	Apr. 30, 2020USD ($)shares	Apr. 30, 2020USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award
Percentage reduction in the aggregate fair value of stock option			88.50%
Stock compensation expense			$ 642	$ 413
Unrecognized compensation cost	$ 3,600		3,600			$ 3,600	$ 3,600
Intrinsic value of outstanding stock options	2,700		2,700			2,700	2,700
Intrinsic value of exercisable stock options	$ 3,400		$ 3,400			$ 3,400	$ 3,400
Period used for calculations			5 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Period used for calculations			3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Period used for calculations			5 years
2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares of common stock available for award | shares	166,999		166,999			166,999	166,999
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares of common stock reserved for issuance | shares	500,000		500,000			500,000	500,000
Stock Options Plans
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense recognize, period			3 years
Intrinsic value of the stock options exercised			$ 300	$ 1,400
Stock Options Plans | 2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Initial vesting percentage			33.33%
Period to become exercisable			3 years
Number of shares of common stock reserved for issuance | shares	1,700,000		1,700,000			1,700,000	1,700,000
ISOs | 2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Incentive stock option award maximum expiration period			10 years
Senior executives | Performance-based restricted stock units | 2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Period to become exercisable		3 years				3 years	3 years
Number of executives | person	2	2
Percentage of the maximum shares for the target number of shares awarded			50.00%
Senior executives | Performance-based restricted stock units | 2011 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares awarded | shares			45,000	36,000	36,000

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Jan. 31, 2020
Federal corporate income tax rate (as percent)	21.00%	21.00%	21.00%
Computed expected income tax benefit	$ 1,102	$ 6,391
Net operating loss carryback	4,175
Net operating losses deemed unrealizable	(695)	(5,316)
Foreign tax rate differential	(111)	(754)
Adjustments and other permanent differences	(17)	200
Income tax benefit	4,454	521
United Kingdom
Deferred tax valuation allowance		$ 5,300
Increase in deferred tax valuation allowance	$ 700

INCOME TAXES - Net Operating Lo

INCOME TAXES - Net Operating Loss Carryback (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Jan. 31, 2020
INCOME TAXES
Net operating loss carry forward			$ 38.5
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	21.00%
Amount of rate difference benefit	$ 4.2

INCOME TAXES - Research and Dev

INCOME TAXES - Research and Development Tax Credits (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2019	Apr. 30, 2020	Jan. 31, 2020
INCOME TAXES
Prior period for identify and quantify the amounts of research and development credits	3 years
Research and development tax credit benefit	$ 16.2
Unrecognized income tax benefits related to research and development credits		$ 5
Amount of unrecognized income tax benefits liability			$ 5
Income tax refunds and prepaid income taxes		$ 21.4	$ 14.5

INCOME TAXES - Supplemental Cas

INCOME TAXES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
INCOME TAXES
Income Taxes Paid, Net		$ 0.5
Proceeds from Income Tax Refunds	$ 0.8	$ 6.1

NET LOSS PER SHARE ATTRIBUTAB_3

NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Net loss attributable to the stockholders of Argan, Inc.	$ (763)	$ (29,800)
Weighted average number of shares outstanding - basic	15,643	15,583
Weighted average number of shares outstanding - diluted	15,643	15,583
Basic (in Dollars per share)	$ (0.05)	$ (1.91)
Diluted (in Dollars per share)	$ (0.05)	$ (1.91)

NET LOSS PER SHARE ATTRIBUTAB_4

NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. - Additional information (Details) - shares	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
NET LOSS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Antidilutive common stock	1,483,151	1,190,913

CASH DIVIDENDS (Details)

CASH DIVIDENDS (Details) - $ / shares	Apr. 30, 2020	Apr. 09, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
CASH DIVIDENDS
Regular cash dividend declared per common stock		$ 0.25		$ 0.25	$ 0.25
Regular cash dividend paid per common stock	$ 0.25		$ 0.25

CUSTOMER CONCENTRATIONS (Detail

CUSTOMER CONCENTRATIONS (Details) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2020USD ($)customer	Apr. 30, 2020USD ($)Ownercustomer	Apr. 30, 2019customer	Jan. 31, 2020USD ($)Owner
Customer Concentrations
Number of project owners | Owner		3		3
Amounts retained by project owners	$ 20	$ 21		$ 20
Percentage of amounts retained by project owners		96.00%		82.00%
Accounts Receivable
Customer Concentrations
Number of customers | customer	3	1
Major Customer One
Customer Concentrations
Amounts retained by project owners	$ 6.5	$ 10.3		$ 6.5
Major Customer One | Accounts Receivable
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer		33.00%		24.00%
Major Customer Two
Customer Concentrations
Amounts retained by project owners	5.9	$ 5.9		$ 5.9
Major Customer Two | Accounts Receivable
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer				21.00%
Major Customer Three
Customer Concentrations
Amounts retained by project owners	$ 4	$ 4		$ 4
Major Customer Three | Accounts Receivable
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer	12.00%
Power Services | Revenue
Customer Concentrations
Percentage of major customers or segments		81.00%	41.00%
Number of customers | customer		2	2
Power Services | Major Customer One | Revenue
Customer Concentrations
Percentage of major customers or segments		61.00%	17.00%
Power Services | Major Customer Two | Revenue
Customer Concentrations
Percentage of major customers or segments		17.00%	14.00%
Industry services | Revenue
Customer Concentrations
Percentage of major customers or segments		16.00%	55.00%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Jan. 31, 2020
Segment Reporting Information
Revenues	$ 60,148	$ 49,544
Cost of revenues	56,139	70,570
Gross (loss) profit	4,009	(21,026)
Selling, general and administrative expenses	10,344	9,588
Impairment loss		2,072
(Loss) income from operations	(6,335)	(32,686)
Other income, net	1,088	2,252
(Loss) income before income taxes	(5,247)	(30,434)
Income tax benefit	4,454	521
Net loss	(793)	(29,913)
Amortization of intangibles assets	225	299
Depreciation	937	829
Property, plant and equipment additions	684	1,985
Current assets	455,736	373,161	$ 421,755
Current liabilities	173,106	71,026	144,034
Goodwill	27,943	30,766	27,943
Total assets	512,964	433,161	$ 487,540
Other
Segment Reporting Information
Selling, general and administrative expenses	1,805	1,570
(Loss) income from operations	(1,805)	(1,570)
Other income, net	64	152
(Loss) income before income taxes	(1,741)	(1,418)
Depreciation	1	1
Property, plant and equipment additions		11
Current assets	113,633	55,194
Current liabilities	455	669
Total assets	113,963	56,345
Power Services
Segment Reporting Information
Revenues	48,612	20,203
Cost of revenues	45,710	44,526
Gross (loss) profit	2,902	(24,323)
Selling, general and administrative expenses	5,928	5,646
Impairment loss		2,072
(Loss) income from operations	(3,026)	(32,041)
Other income, net	1,024	2,100
(Loss) income before income taxes	(2,002)	(29,941)
Amortization of intangibles assets	60	87
Depreciation	170	168
Property, plant and equipment additions	380	1,062
Current assets	316,753	281,759
Current liabilities	163,674	52,829
Goodwill	18,476	18,476
Total assets	348,577	310,354
Industrial Services
Segment Reporting Information
Revenues	9,744	27,069
Cost of revenues	8,982	24,271
Gross (loss) profit	762	2,798
Selling, general and administrative expenses	2,123	1,861
(Loss) income from operations	(1,361)	937
(Loss) income before income taxes	(1,361)	937
Amortization of intangibles assets	165	166
Depreciation	667	560
Property, plant and equipment additions	210	815
Current assets	22,916	33,315
Current liabilities	8,184	16,909
Goodwill	9,467	12,290
Total assets	46,411	61,893
Telecom Services
Segment Reporting Information
Revenues	1,792	2,272
Cost of revenues	1,447	1,773
Gross (loss) profit	345	499
Selling, general and administrative expenses	488	511
(Loss) income from operations	(143)	(12)
(Loss) income before income taxes	(143)	(12)
Amortization of intangibles assets		46
Depreciation	99	100
Property, plant and equipment additions	94	97
Current assets	2,434	2,893
Current liabilities	793	619
Total assets	$ 4,013	$ 4,569