Argan (AGX) 10-Q8 Sep 222023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jul. 31, 2022	Sep. 06, 2022
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2022
Document Transition Report	false
Entity File Number	001-31756
Entity Registrant Name	ARGAN INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-1947195
Entity Address, Address Line One	One Church Street, Suite 201
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	301
Local Phone Number	315-0027
Title of 12(b) Security	Common Stock, $.15 par value
Trading Symbol	AGX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,884,195
Entity Central Index Key	0000100591
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--01-31
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
REVENUES	$ 118,110	$ 133,008	$ 218,387	$ 259,349
Cost of revenues	93,723	105,356	174,262	207,983
GROSS PROFIT	24,387	27,652	44,125	51,366
Selling, general and administrative expenses	10,984	10,331	21,559	20,223
INCOME FROM OPERATIONS	13,403	17,321	22,566	31,143
Other income (expense), net	505	(260)	1,100	452
INCOME BEFORE INCOME TAXES	13,908	17,061	23,666	31,595
Income tax expense	(9,686)	(4,191)	(11,959)	(7,959)
NET INCOME	4,222	12,870	11,707	23,636
Foreign currency translation adjustments	(687)	(139)	(1,951)	(257)
COMPREHENSIVE INCOME	$ 3,535	$ 12,731	$ 9,756	$ 23,379
NET INCOME PER SHARE
Basic	$ 0.30	$ 0.82	$ 0.81	$ 1.50
Diluted	$ 0.30	$ 0.81	$ 0.80	$ 1.48
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic	14,134	15,769	14,516	15,748
Diluted	14,247	15,982	14,616	15,978
CASH DIVIDENDS PER SHARE	$ 0.25	$ 0.25	$ 0.50	$ 0.50

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2022	Jan. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 143,344	$ 350,472
Short-term investments	175,643	90,026
Accounts receivable, net	24,888	26,978
Contract assets	8,678	4,904
Other current assets	25,640	34,904
TOTAL CURRENT ASSETS	378,193	507,284
Property, plant and equipment, net	9,507	10,460
Goodwill	28,033	28,033
Other purchased intangible assets, net	2,941	3,322
Right-of-use, deferred tax and other assets	4,396	4,486
TOTAL ASSETS	423,070	553,585
CURRENT LIABILITIES
Accounts payable	38,180	41,822
Accrued expenses	39,816	53,315
Contract liabilities	64,016	127,890
TOTAL CURRENT LIABILITIES	142,012	223,027
Noncurrent liabilities	4,022	4,963
TOTAL LIABILITIES	146,034	227,990
COMMITMENTS AND CONTINGENCIES
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; 15,827,772 and 15,788,673 shares issued at July 31, 2022 and January 31, 2022, respectively; 13,884,195 and 15,257,688 shares outstanding at July 31, 2022 and January 31, 2022, respectively	2,374	2,368
Additional paid-in capital	160,229	158,190
Retained earnings	193,205	188,690
Less treasury stock, at cost - 1,943,577 and 530,985 shares at July 31, 2022 and January 31, 2022, respectively	(73,573)	(20,405)
Accumulated other comprehensive loss	(4,402)	(2,451)
TOTAL STOCKHOLDERS' EQUITY	277,833	326,392
Non-controlling interest	(797)	(797)
TOTAL EQUITY	277,036	325,595
TOTAL LIABILITIES AND EQUITY	$ 423,070	$ 553,585

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 31, 2022	Jan. 31, 2022
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	15,827,772	15,788,673
Common stock, shares outstanding	13,884,195	15,257,688
Treasury stock, shares	1,943,577	530,985

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Non-controlling Interests	Total
Balances at Jan. 31, 2021	$ 2,356	$ 153,315	$ 166,110	$ (33)	$ (1,081)	$ 1,741	$ 322,408
Balances (in shares) at Jan. 31, 2021	15,702,969
Net income			23,636				23,636
Foreign currency translation loss					(257)		(257)
Stock compensation expense		1,609					1,609
Stock option exercises and other share-based award settlements	$ 10	1,013					1,023
Stock option exercises and other share-based award settlements (in shares)	66,471
Cash dividends			(7,884)				(7,884)
Balances at Jul. 31, 2021	$ 2,366	155,937	181,862	(33)	(1,338)	1,741	340,535
Balances (in shares) at Jul. 31, 2021	15,769,440
Balances at Apr. 30, 2021	$ 2,366	155,007	172,934	(33)	(1,199)	1,741	330,816
Balances (in shares) at Apr. 30, 2021	15,769,440
Net income			12,870				12,870
Foreign currency translation loss					(139)		(139)
Stock compensation expense		930					930
Cash dividends			(3,942)				(3,942)
Balances at Jul. 31, 2021	$ 2,366	155,937	181,862	(33)	(1,338)	1,741	340,535
Balances (in shares) at Jul. 31, 2021	15,769,440
Balances at Jan. 31, 2022	$ 2,368	158,190	188,690	(20,405)	(2,451)	(797)	325,595
Balances (in shares) at Jan. 31, 2022	15,257,688
Net income			11,707				11,707
Foreign currency translation loss					(1,951)		(1,951)
Stock compensation expense		1,979					1,979
Stock option exercises and other share-based award settlements	$ 6	60					$ 66
Stock option exercises and other share-based award settlements (in shares)	39,099						2,000
Common stock repurchases				(53,168)			$ (53,168)
Common stock repurchases (in shares)	(1,412,592)						(1,412,592)
Cash dividends			(7,192)				$ (7,192)
Balances at Jul. 31, 2022	$ 2,374	160,229	193,205	(73,573)	(4,402)	(797)	277,036
Balances (in shares) at Jul. 31, 2022	13,884,195
Balances at Apr. 30, 2022	$ 2,374	159,170	192,463	(47,482)	(3,715)	(797)	302,013
Balances (in shares) at Apr. 30, 2022	14,585,908
Net income			4,222				4,222
Foreign currency translation loss					(687)		(687)
Stock compensation expense		1,059					1,059
Common stock repurchases				(26,091)			(26,091)
Common stock repurchases (in shares)	(701,713)
Cash dividends			(3,480)				(3,480)
Balances at Jul. 31, 2022	$ 2,374	$ 160,229	$ 193,205	$ (73,573)	$ (4,402)	$ (797)	$ 277,036
Balances (in shares) at Jul. 31, 2022	13,884,195

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 4,222	$ 12,870	$ 11,707	$ 23,636
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Stock compensation expense	1,100	900	1,979	1,609
Depreciation	747	859	1,556	1,741
Lease expense	500	1,100	1,319	1,938
Equity in (income) loss of solar energy investments			(1,070)	325
Deferred income tax expense			373	1,001
Amortization of purchased intangible assets	233	225	399	453
Other			(609)	(96)
Changes in operating assets and liabilities
Accounts receivable			2,090	(14,407)
Contract assets			(3,774)	1,258
Other assets			9,252	(3,161)
Accounts payable and accrued expenses			(16,124)	(8,793)
Contract liabilities			(63,874)	41,680
Net cash (used in) provided by operating activities			(56,776)	47,184
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments			(175,000)
Maturities of short-term investments			90,000	50,000
Purchases of property, plant and equipment			(638)	(1,011)
Investments in solar energy projects				(4,085)
Net cash (used in) provided by investing activities			(85,638)	44,904
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock repurchases			(53,168)
Payments of cash dividends			(7,192)	(7,884)
Proceeds from the exercise of stock options			66	1,023
Net cash used in financing activities			(60,294)	(6,861)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH			(4,420)	(483)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(207,128)	84,744
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			350,472	366,671
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 143,344	$ 451,415	$ 143,344	$ 451,415

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	Jul. 31, 2022
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 United States (the “U.S.”), the Republic of Ireland (“Ireland”) and the United Kingdom (the “U.K.”). GPS and APC, including a consolidated variable interest entity (“VIE”), 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 southeastern region of the U.S. and that are based on its expertise in producing, delivering and installing fabricated metal 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 U.S. Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries and the VIE. 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. The condensed consolidated balance sheet as of July 31, 2022, the condensed consolidated statements of earnings and stockholders’ equity for the three and six months ended July 31, 2022 and 2021, and the condensed consolidated statements of cash flows for the three and six months ended July 31, 2022 and 2021 are unaudited. The condensed consolidated balance sheet as of January 31, 2022 has been derived from audited financial statements. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. 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, 2022 (“Fiscal 2022”). 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 July 31, 2022, 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 There are no recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its condensed consolidated financial statements. Fair Values 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. Consequently, the account balances of the VIE are included in the Company’s consolidated financial statements, including development costs incurred by the VIE during the project development period. Consideration for the Company’s engineering and financial support provided to the project included the right to build the power plant pursuant to a turnkey engineering, procurement and construction (“EPC”) services contract that was negotiated and announced. GPS provided financing for the development efforts through notes receivable from the consolidated VIE that was established by the project owner. The project owner was unable to obtain the necessary equity financing for the project and GPS ceased providing project development funding. The repayment of the notes to GPS is overdue. Accordingly, the Company believes that the completion of the development of this project has been significantly jeopardized and that it is doubtful that construction of this power plant will occur. Accordingly, during the fourth quarter of Fiscal 2022, we recorded an impairment loss related to the capitalized project development costs of this project in the amount of $7.9 million, of which $2.5 million was attributed to the non-controlling interest. In March 2022, the project owner publicly announced the cancellation of this power plant project.

REVENUES FROM CONTRACTS WITH CU

REVENUES FROM CONTRACTS WITH CUSTOMERS	6 Months Ended
REVENUES FROM CONTRACTS WITH CUSTOMERS	Jul. 31, 2022
REVENUES FROM CONTRACTS WITH CUSTOMERS
REVENUES FROM CONTRACTS WITH CUSTOMERS	NOTE 2 – REVENUES FROM CONTRACTS WITH CUSTOMERS The Company’s accounting for revenues on 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. The Company focuses on the transfer of the contractor’s control of the goods and/or services to the customer, as opposed to the transfer of risk and rewards. Major provisions of the current guidance cover the determination of which goods and services are distinct and represent separate performance obligations, the appropriate treatments for variable consideration, and the evaluation of whether revenues should be recognized at a point in time or over time. When a performance obligation is satisfied over time, the related revenues are recognized over time. 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 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 portions of estimated gross profit, are recognized as services are provided, based on costs incurred and estimated total contract costs using the cost-to-cost approach. 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 in which it is identified and the loss amount becomes 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. Warranties provided under the Company’s contracts with customers are assurance-type primarily and are recorded as the corresponding contract work is performed. The transaction price for a contract represents the 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 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 include amounts that reflect obligations to provide goods or services for which payment has been received. Contract retentions are 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. Retainage 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 amounts retained by project owners under construction contracts at July 31, 2022 and January 31, 2022 were $43.6 million and $40.4 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 includes in the corresponding transaction price an estimate of the amount that it expects to receive from a claim based on management’s judgement regarding all reasonably available information. Once a final amount has been determined, the transaction price will be revised again to reflect the final resolution. At July 31, 2022 and January 31, 2022, the aggregate amounts of such contract variations included in the transaction prices that were still pending customer acceptance were $4.3 million and $7.5 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. These contract requirements generally relate to specified activities that must be completed by an established date or by the achievement of a specified level of output or efficiency. Each applicable contract defines the conditions under which a project owner may be entitled to any liquidated damages. At the outset of each of the Company’s contracts, the potential amounts of liquidated damages typically are not 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. In other cases, the Company may have the grounds to assert liquidated damages against subcontractors, suppliers, project owners or other parties related to a project. Such circumstances may arise when the Company’s activities and progress are adversely affected by delayed or damaged materials, challenges with equipment performance or other events out of the Company’s control where the Company has rights to recourse, typically in the form of liquidated damages. In general, the Company does not adjust the corresponding contract accounting until it is probable that the favorable cost relief will be realized. Such adjustments have been and could be material. 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. 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 U.S. 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 July 31, 2022, the Company had RUPO of $372.0 million. The largest portion of RUPO at any date usually relates to EPC service contracts with typical performance durations of one to three years. However, the length of certain significant construction projects may exceed three years. The Company estimates that approximately 51% of the RUPO amount at July 31, 2022 will be included in the amount of consolidated revenues that will be recognized during the remainder of the fiscal year ending January 31, 2023 (“Fiscal 2023”). Most of the remaining amount of the RUPO amount at July 31, 2022 is expected to be recognized in revenues during the fiscal year ending January 31, 2024 (“Fiscal 2024”). Revenues for future periods will also include customer contract amounts added to RUPO subsequent to July 31, 2022. It is important to note that estimates may be changed in the future and that cancellations, deferrals, or scope adjustments may occur related to work included in the amount of RUPO at July 31, 2022. 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 and six months ended July 31, 2022 and 2021, disaggregated by the geographic area where the corresponding projects were located: Three Months Ended July 31, Six Months Ended July 31, 2022 2021 2022 2021 United States $ 93,949 $ 123,380 $ 174,221 $ 238,871 Republic of Ireland 15,532 7,556 25,186 12,249 United Kingdom 8,629 1,630 18,980 7,787 Other — 442 — 442 Consolidated Revenues $ 118,110 $ 133,008 $ 218,387 $ 259,349 The major portion of the Company’s 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	6 Months Ended
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	Jul. 31, 2022
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	NOTE 3 – CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS At July 31, 2022 and January 31, 2022, certain amounts of cash equivalents were invested in money market funds with net assets invested in high-quality money market instruments. Such investments include U.S. Treasury obligations; obligations of U.S. government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by U.S. 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 July 31, 2022 and January 31, 2022 consisted solely of certificates of deposit purchased from Bank of America (the “Bank”) with weighted average initial maturities of less than one year (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. Interest income is recorded when earned and is included in other income. At July 31, 2022 and January 31, 2022, the weighted average annual interest rates of the outstanding CDs were 0.9% and 0.1%, respectively. The Company has a substantial portion of its cash on deposit in the U.S. with the Bank. The Company also maintains certain Euro-based bank accounts in Ireland and certain pound sterling-based bank accounts in the U.K. in support of the operations of APC. Management does not believe that the combined amount of the CDs and the cash deposited with the Bank and cash balances maintained at financial institutions in Ireland and the U.K., in excess of government-insured levels, represent material risks.

ACCOUNTS AND NOTES RECEIVABLE

ACCOUNTS AND NOTES RECEIVABLE	6 Months Ended
ACCOUNTS AND NOTES RECEIVABLE	Jul. 31, 2022
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 tangible 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 credit losses based on management’s estimate of the loss that is expected to occur over the remaining life of the particular financial asset. The amounts of any credit losses for the three and six months ended July 31, 2022 and 2021 were insignificant. The amount of the allowance for credit losses at both July 31, 2022 and January 31, 2022 was $2.4 million.

PURCHASED INTANGIBLE ASSETS

PURCHASED INTANGIBLE ASSETS	6 Months Ended
PURCHASED INTANGIBLE ASSETS	Jul. 31, 2022
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS	NOTE 5 – PURCHASED INTANGIBLE ASSETS At both July 31, 2022 and January 31, 2022, the goodwill balances related primarily to GPS and TRC were $18.5 million and $9.5 million, respectively. Management does not believe that any events or circumstances that have occurred or arisen since January 31, 2022, require an updated assessment of the goodwill balances of either GPS or TRC. The Company’s purchased intangible assets, other than goodwill, related primarily to TRC and consisted of the following elements as of July 31, 2022 and January 31, 2022: July 31, 2022 January 31, Estimated Gross Accumulated Net 2022, (net Useful Life Amounts Amortization Amounts amounts) Trade name 15 years $ 4,499 $ 2,000 $ 2,499 $ 2,650 Process certifications 7 years 1,897 1,807 90 226 Customer relationships 10 years 916 610 306 351 Customer contracts < 1 year 114 68 46 95 Totals $ 7,426 $ 4,485 $ 2,941 $ 3,322

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	6 Months Ended
FINANCING ARRANGEMENTS	Jul. 31, 2022
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS	NOTE 6 – FINANCING ARRANGEMENTS During April 2021, the Company amended its Amended and Restated Replacement Credit Agreement with the Bank (the “Credit Agreement”). The amendment extended the expiration date of the Credit Agreement to May 31, 2024 and reduced the borrowing rate. The Credit Agreement includes the following features, among others: a lending commitment of $50.0 million including a revolving loan with interest at the 30-day LIBOR plus 1.6% (reduced from 2.0%), and an accordion feature which allows for an additional commitment amount of $10.0 million, subject to certain conditions. 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 defined in the Credit Agreement. At July 31, 2022, the Company did not have any borrowings outstanding under the Credit Agreement. However, the Bank has issued outstanding letters of credit in the total amount of $15.1 million in support of the activities of APC under existing customer contracts. In connection with the project development activities of the VIE that is described in Note 1, the Bank issued a letter of credit, outside the scope of the Credit Agreement, in the approximate amount of $3.4 million as of July 31, 2022 and January 31, 2022, for which the Company has provided cash collateral. As of July 31, 2022, no amounts have been drawn against this letter of credit. 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 includes other terms, covenants and events of default that are customary for a credit facility of its size and nature, including a requirement to achieve positive adjusted earnings before interest, taxes, depreciation and amortization, as defined, over each rolling twelve-month measurement period. As of July 31, 2022 and January 31, 2022, the Company was in compliance with the covenants of the Credit Agreement. The Company expects to amend the Credit Agreement during Fiscal 2023 in order to replace LIBOR with an equivalent benchmark rate. The Company does not expect that the change will materially impact its consolidated financial statements.

COMMITMENTS

COMMITMENTS	6 Months Ended
COMMITMENTS	Jul. 31, 2022
COMMITMENTS
COMMITMENTS	NOTE 7 – COMMITMENTS Leases The Company’s leases are primarily operating leases that cover office space, expiring on various dates through September 2031, and certain equipment used by the Company in the performance of its construction services contracts. Some of these equipment leases may be embedded in broader agreements with subcontractors or construction equipment suppliers. The Company has no material finance leases. None of the operating leases include significant amounts for incentives, rent holidays or price escalations. Under certain leases, the Company is obligated to pay property taxes, insurance, and maintenance costs. Operating lease right-of-use assets and associated lease liabilities are recorded 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 (currently LIBOR plus 1.6%) at the commencement date in determining the present value of future payments. The expected lease term includes any option to extend or to terminate the lease when it is reasonably certain the Company will exercise such option. Operating lease expense amounts are recorded on a straight-line basis over the expected lease terms and were $0.5 million and $1.3 million for the three and six months ended July 31, 2022, respectively, and were $1.1 million and $1.9 million for the three and six months ended July 31, 2021, respectively. Operating lease payments for the three and six months ended July 31, 2022 were $0.5 million and $1.3 million, respectively, and they were $1.1 million and $1.9 million for the three and six months ended July 31, 2021, respectively. For operating leases as of July 31, 2022, the weighted average lease term is 60 months and the weighted average discount rate is 2.4%. The aggregate amounts of operating leases added during the six months ended July 31, 2022 and 2021 were $0.5 million and $0.8 million, respectively. 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 July 31, 2022. Years Ending January 31, 2023 (remainder) $ 640 2024 540 2025 380 2026 250 2027 231 Thereafter 1,025 Total lease payments 3,066 Less interest portion 182 Present value of lease payments 2,884 Less current portion (included in accrued expenses) 894 Non-current portion (included in noncurrent liabilities) $ 1,990 Payments for the occupancy by TRC of its primary offices and plant, which are made to the founder and retired chief executive officer of TRC based on an annual rental rate of $0.5 million, are being made on a month-to-month rental basis. The Company also uses equipment and occupies other facilities under short-term rental agreements. Rent expense amounts incurred under short-term rental agreements were $3.0 million and $5.3 million, respectively for the three and six months ended July 31, 2022. Rent expense amounts incurred under these types of arrangements for the three and six months ended July 31, 2021 was $2.5 million and $4.9 million, respectively. 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 July 31, 2022 are not estimable. As of July 31, 2022, the value of the Company’s unsatisfied bonded performance obligations, covering all of its subsidiaries, was approximately $139.6 million. In addition, as of July 31, 2022, there were bonds outstanding in the aggregate amount of approximately $1.0 million covering other risks including warranty obligations related to completed activities; these bonds expire at various dates over the next two years. Not all of our projects require bonding. As of July 31, 2022 and January 31, 2022, the Company had also provided a financial guarantee, subject to certain terms and conditions, on behalf of GPS to an original equipment manufacturer in the amount of $3.6 million in support of business development efforts. A liability was established for the estimated loss related to this guarantee during Fiscal 2022. 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

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES	6 Months Ended
LEGAL CONTINGENCIES	Jul. 31, 2022
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES	NOTE 8 – LEGAL CONTINGENCIES In the normal course of business, the Company may have pending claims and legal proceedings. In the opinion of management, based on information available at this time, there are no current claims and proceedings that are expected to have a material adverse effect on the condensed consolidated financial statements as of July 31, 2022.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
STOCK-BASED COMPENSATION	Jul. 31, 2022
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 9 – STOCK-BASED COMPENSATION On June 23, 2020, the Company’s stockholders approved the adoption of the 2020 Stock Plan (the “2020 Plan”), and the allocation of 500,000 shares of the Company’s common stock for issuance thereunder. The Company’s board of directors may make share-based awards under the 2020 Plan to officers, directors and key employees. The 2020 Plan replaced the 2011 Stock Plan (the “2011 Plan”); the Company’s authority to make awards pursuant to the 2011 Plan expired on July 19, 2021. Together, the 2020 Plan and the 2011 Plan are hereinafter referred to as the “Stock Plans.” The features of the 2020 Plan are similar to those included in the 2011 Plan. Awards may include nonqualified stock options, incentive stock options, and restricted or unrestricted stock. The specific provisions for awards are documented in a written agreement between the Company and the awardee. All stock options awarded under the Stock Plans have exercise prices per share at least equal to the common stock’s market value on the date of grant. Stock options have terms no longer than ten years. Typically, stock options are awarded with one three As of July 31, 2022, there were 1,963,635 shares of common stock reserved for issuance under the Stock Plans; this number includes 252,146 shares of common stock available for future awards under the 2020 Plan. Stock Options A summary of stock option activity under the Stock Plans for the six months ended July 31, 2022, along with corresponding weighted average per share amounts, is presented below (shares in thousands): Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2022 1,405 $ 44.35 6.17 $ 10.31 Granted 38 $ 36.78 Exercised (2) $ 32.68 Forfeited (10) $ 56.27 Outstanding, July 31, 2022 1,431 $ 44.08 5.79 $ 10.19 Exercisable, July 31, 2022 1,192 $ 44.83 5.27 $ 10.74 Outstanding, July 31, 2021 1,398 $ 44.42 6.51 $ 10.41 Exercisable, July 31, 2021 1,022 $ 45.34 5.76 $ 11.20 The changes in the number of non-vested options to purchase shares of common stock for the six months ended July 31, 2022, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2022 295 $ 7.80 Granted 38 $ 6.68 Vested (94) $ 8.24 Non-vested, July 31, 2022 239 $ 7.45 Non-vested, July 31, 2021 376 $ 8.27 The total intrinsic value amount of the stock options exercised during the six months ended July 31, 2021 was $0.3 million; the amount was not significant for the six months ended July 31, 2022. At July 31, 2022, 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 $0.5 million and $0.3 million, respectively. Restricted Stock Units The Company awards restricted stock units to senior executives, members of the Company’s board of directors and certain other employees. Awardees earn the right to receive shares of common stock as certain performance goals are achieved and/or service periods are satisfied. Each restricted stock unit expires on the three-year anniversary of the award. During the six months ended July 31, 2022, the Company awarded 47,000 performance-based restricted stock units, 7,500 renewable performance-based restricted stock units, 60,000 time-based restricted stock units and 2,604 shares based on the amount of cash dividends deemed paid on shares earned pursuant to the awards. During the six months ended July 31, 2021, the Company awarded 49,000 performance-based restricted stock units, 10,000 renewable performance-based restricted stock units and 49,500 time-based restricted stock units. The changes in the maximum number of restricted stock units for the six months ended July 31, 2022, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Outstanding, February 1, 2022 222 $ 31.48 Awarded 117 $ 26.97 Issued (37) $ 38.51 Forfeited (22) $ 40.85 Outstanding, July 31, 2022 280 $ 29.46 Outstanding, July 31, 2021 190 $ 29.73 Fair Value The fair value amounts of stock options and restricted stock units are recorded as stock compensation expense over the terms of the corresponding awards. Expense amounts related to stock awards were $1.1 million and $0.9 million for the three months ended July 31, 2022 and 2021, respectively. Expense amounts related to stock awards were $2.0 million and $1.6 million for the six months ended July 31, 2022 and 2021, respectively. At July 31, 2022, there was $7.5 million in unrecognized compensation cost related to outstanding stock awards that the Company expects to expense over the next three years. The Company estimates the weighted average fair value of stock options on the date of award using a Black-Scholes option pricing model. 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- The fair value amounts for the performance-based restricted stock units have been determined by using the per share market price of the Company’s common stock on the dates of award and, by assigning equal probabilities to the thirteen possible payout outcomes at the end of each three-year term, and by computing the weighted average of the outcome amounts. For each award, the estimated fair value amount was calculated to be 88.5% of the aggregate market value of the target number (which is 50% of the maximum number) of shares on the award date. For the renewable performance-based restricted stock units, the fair value of each award was determined to be 50% of the aggregate market value of the shares of common stock covered by the award on the date of the award. For the time-based restricted stock units, the fair value of each award equals the aggregate market price for the number of shares covered by each award on the date of award.

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jul. 31, 2022
INCOME TAXES
INCOME TAXES	NOTE 10 – INCOME TAXES Income Tax Expense Reconciliations The Company’s income tax amounts for the six months ended July 31, 2022 and 2021 differed from corresponding amounts computed by applying the federal corporate income tax rate of 21% to the income before income taxes for the periods as presented below: Six Months Ended July 31, 2022 2021 Computed expected income tax expense $ (4,970) $ (6,635) Difference resulting from: State income taxes, net of federal tax effect (349) (719) Research and development credits adjustment (6,181) — Deferred tax adjustments (66) (283) Other permanent differences and adjustments, net (393) (322) Income tax expense $ (11,959) $ (7,959) Foreign income tax expense amounts for the six months ended July 31, 2022 and 2021 were not material. Net Operating Loss (“NOL”) Carryback In an effort to combat the adverse economic impacts of the COVID-19 crisis, the U.S. 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 was an emergency economic stimulus package that included spending and tax breaks aimed at strengthening the U.S. economy and funding a nationwide effort to curtail the effects of the outbreak of COVID-19. The tax changes of the CARES Act included a temporary suspension of the limitations on the future utilization of certain NOLs and re-established a carryback period for certain losses to five years. The NOLs eligible for carryback under the CARES Act include the Company’s domestic NOL for the year ended January 31, 2020 (“Fiscal 2020”), which was approximately $39.5 million. The Company made the appropriate filing with the Internal Revenue Service (the “IRS”) requesting carryback refunds of income taxes paid for the years ended January 31, 2017 (“Fiscal 2017”), 2016 (“Fiscal 2016”) and 2015 in the total amount of approximately $12.7 million during the fiscal year ended January 31, 2021 (“Fiscal 2021”); the IRS has not completed the processing of the Company’s refund request. Research and Development Tax Credits During the year ended January 31, 2019 (“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 tax credits that may have been 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 net amount of federal and state research and development tax credit benefit recognized in Fiscal 2019 was $16.6 million. During Fiscal 2020, deferred tax assets related to the research and development tax credits were reduced by $0.4 million. The Company recorded a corresponding liability for uncertain income tax return positions related to identified but unrecognized research and development tax credit benefits in the amount of $5.0 million. Most of this liability was included in accrued expenses as of January 31, 2022. During Fiscal 2021, the IRS concluded examinations of the Company’s consolidated federal income tax returns for Fiscal 2016, as amended; Fiscal 2017, as amended; and the year ended January 31, 2018 (“Fiscal 2018”) with its focus on the research and development tax credits included therein. In January 2021, the IRS issued its final revenue agents reports that documented its understanding of the facts, attempted to summarize the Company’s arguments in support of the research and development claims and stated its position which disagreed with the Company’s treatment of a substantial amount of the costs that supported the Company’s claims. In March 2021, the Company submitted a formal protest of the findings of the IRS examiner and requested an appeals hearing. At the conclusion of the hearing that occurred in May 2022, the Company agreed to accept a settlement offer from the IRS in the amount of approximately $7.9 million, before interest. As a result, during the three-month period ended July 31, 2022, the Company made an unfavorable adjustment to its liability for uncertain income tax positions in the approximate amount of $6.2 million. This amount is also included in income tax expense for the three and six months ended July 31, 2022. The Company has also formally protested the conclusions reached by two states, where the Company filed tax returns reflecting the benefits of certain research and development credits, that the credits are not allowable. The Company expects that any unfavorable adjustments related to the ultimate settlement of the income tax disputes with the states will not be significant. Income Tax Refunds As of July 31, 2022 and January 31, 2022, the balances of other current assets in the condensed consolidated balance sheet included income tax refunds receivable and prepaid income taxes in the total amounts of approximately $14.9 million and $29.5 million, respectively. The income tax refunds included the amounts that were expected to be received from the IRS upon completion of the tax return examination appeals process and the amount expected to be received from the IRS upon its processing of the Company’s NOL carryback refund request as described above. Income Tax Returns The Company is subject to federal and state income taxes in the U.S., and income taxes in Ireland and the U.K. 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 the end of Fiscal 2018 except for several notable exceptions including Ireland, the U.K. and several states where the open periods are one year longer. Solar Energy Projects The Company has invested in limited liability companies that make equity investments in solar energy projects that are eligible to receive energy tax credits, including $4.1 million that was invested during the six months ended July 31, 2021. The passive investments have been accounted for using the equity method and the balances are included in other assets in our condensed consolidated balance sheets. Each tax credit, when recognized, is recorded as a reduction of the corresponding investment balance with an offsetting reduction in the balance of accrued taxes payable in accordance with the deferral method. At July 31, 2022 and January 31, 2022, the investment account balances were $1.2 million and $0.2 million, respectively. These investments are expected to provide positive overall returns over their six-year expected lives. During the three and six months ended July 31, 2022, the investment balance was adjusted to reflect the Company’s share of the income of the investment entities in the amounts of approximately $0.5 million and $1.0 million, respectively, which amounts have been included as other income in the Company’s condensed consolidated statements of earnings for the corresponding periods. The Company has also established deferred taxes related to the difference in the book and tax bases of the investments. Supplemental Cash Flow Information The amounts of cash paid for income taxes during the six months ended July 31, 2022 and 2021 were $1.3 million and $7.5 million (including the $4.1 million solar energy investment described above), respectively. The amounts of income tax refunds received during the six months ended July 31, 2022 and 2021 were not material.

NET INCOME PER SHARE

NET INCOME PER SHARE	6 Months Ended
NET INCOME PER SHARE	Jul. 31, 2022
NET INCOME PER SHARE
NET INCOME PER SHARE	NOTE 11 – NET INCOME PER SHARE Basic and diluted net income per share amounts are computed as follows (shares in thousands except in the note): Three Months Ended July 31, 2022 2021 Net income $ 4,222 $ 12,870 Weighted average number of shares outstanding – basic 14,134 15,769 Effect of stock awards (1) 113 213 Weighted average number of shares outstanding – diluted 14,247 15,982 Net income per share Basic $ 0.30 $ 0.82 Diluted $ 0.30 $ 0.81 (1) For the three months ended July 31, 2022 and 2021, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options covering an aggregate of 876,734 and 366,500 shares of common stock, respectively. Six Months Ended July 31, 2022 2021 Net income $ 11,707 $ 23,636 Weighted average number of shares outstanding – basic 14,516 15,748 Effect of stock awards (1) 100 230 Weighted average number of shares outstanding – diluted 14,616 15,978 Net income per share Basic $ 0.81 $ 1.50 Diluted $ 0.80 $ 1.48 (1) For the six months ended July 31, 2022 and 2021, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options covering an aggregate of 876,734 and 366,500 shares of common stock, respectively.

CASH DIVIDENDS AND COMMON STOCK

CASH DIVIDENDS AND COMMON STOCK REPURCHASES	6 Months Ended
CASH DIVIDENDS AND COMMON STOCK REPURCHASES	Jul. 31, 2022
CASH DIVIDENDS AND COMMON STOCK REPURCHASES
CASH DIVIDENDS AND COMMON STOCK REPURCHASES	NOTE 12 – CASH DIVIDENDS AND COMMON STOCK REPURCHASES On June 21, 2022, Argan’s board of directors declared a regular quarterly cash dividend in the amount of $0.25 per share of common stock, which was paid paid paid stockholders Pursuant to authorizations provided by Argan’s board of directors (the “Share Repurchase Plan”), the Company repurchased shares of its common stock during the six months ended July 31, 2022. During this period, the Company repurchased 1,412,592 shares of common stock, most on the open market, for an aggregate price of approximately $53.2 million, or $37.64 per share.

CUSTOMER CONCENTRATIONS

CUSTOMER CONCENTRATIONS	6 Months Ended
CUSTOMER CONCENTRATIONS	Jul. 31, 2022
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 77% and 74% of consolidated revenues for the three months ended July 31, 2022 and 2021, respectively, and 76% of consolidated revenues for both the six months ended July 31, 2022 and 2021. The industrial services segment represented 20% and 23% of consolidated revenues for the three months ended July 31, 2022 and 2021, respectively, and 21% and 22% of consolidated revenues for the six months ended July 31, 2022 and 2021, respectively. The Company’s most significant customer relationships for the three months ended July 31, 2022 included two power industry service customers, which accounted for 47% and 10% of consolidated revenues, respectively. The Company’s most significant customer relationships for the three months ended July 31, 2021 included one power industry service customer and one industrial services customer, which accounted for 59% and 12% of consolidated revenues, respectively. The Company’s most significant customer relationship for the six months ended July 31, 2022 included one power industry service customer, which accounted for 47% of consolidated revenues. The Company’s most significant customer relationships for the six months ended July 31, 2021 included one power industry service customer and one industrial services customer, which accounted for 63% and 12% of consolidated revenues, respectively. The accounts receivable balances from two major customers represented 17% and 10% of the corresponding consolidated balance as of July 31, 2022. Accounts receivable balances from three major customers represented 22%, 15% and 12% of the corresponding consolidated balance as of January 31, 2022. The contract asset balance related to one major customer represented 14% of the corresponding consolidated balance as of July 31, 2022. Contract asset balances from two major customers represented 31% and 13% of the corresponding consolidated balance as of January 31, 2022.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
SEGMENT REPORTING	Jul. 31, 2022
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 and six months ended July 31, 2022, intersegment revenues were not material. For the three and six months ended July 31, 2021, intersegment revenues were $1.2 million and $3.2 million, respectively, and primarily related to services provided by industrial fabrication and field services to the power industry services segment and were based on prices negotiated by the parties. Summarized below are certain operating results and financial position data of the Company’s reportable business segments for the three and six months ended July 31, 2022 and 2021. The “Other” column in each summary includes the Company’s corporate expenses. Three Months Ended Power Industrial Telecom July 31, 2022 Services Services Services Other Totals Revenues $ 91,327 $ 23,022 $ 3,761 $ — $ 118,110 Cost of revenues 71,225 19,551 2,947 — 93,723 Gross profit 20,102 3,471 814 — 24,387 Selling, general and administrative expenses 6,058 1,685 808 2,433 10,984 Income (loss) from operations 14,044 1,786 6 (2,433) 13,403 Other income (expense), net 437 — (1) 69 505 Income (loss) before income taxes $ 14,481 $ 1,786 $ 5 $ (2,364) 13,908 Income tax expense (9,686) Net income $ 4,222 Amortization of intangibles $ — $ 165 $ 68 $ — $ 233 Depreciation 138 508 100 1 747 Property, plant and equipment additions 42 336 22 — 400 Current assets $ 258,771 $ 31,960 $ 4,745 $ 82,717 $ 378,193 Current liabilities 124,320 15,055 1,991 646 142,012 Goodwill 18,476 9,467 90 — 28,033 Total assets 282,783 49,097 8,198 82,992 423,070 Three Months Ended Power Industrial Telecom July 31, 2021 Services Services Services Other Totals Revenues $ 99,004 $ 30,153 $ 3,851 $ — $ 133,008 Cost of revenues 78,496 23,847 3,013 — 105,356 Gross profit 20,508 6,306 838 — 27,652 Selling, general and administrative expenses 5,751 1,977 484 2,119 10,331 Income (loss) from operations 14,757 4,329 354 (2,119) 17,321 Other income (expense), net (262) — — 2 (260) Income (loss) before income taxes $ 14,495 $ 4,329 $ 354 $ (2,117) 17,061 Income tax expense (4,191) Net income $ 12,870 Amortization of intangibles $ 61 $ 164 $ — $ — $ 225 Depreciation 153 593 112 1 859 Property, plant and equipment additions 35 7 123 2 167 Current assets $ 389,998 $ 29,084 $ 3,751 $ 174,823 $ 597,656 Current liabilities 293,002 12,099 1,563 683 307,347 Goodwill 18,476 9,467 — — 27,943 Total assets 422,902 48,655 5,274 175,158 651,989 Six Months Ended Power Industrial Telecom July 31, 2022 Services Services Services Other Totals Revenues $ 165,276 $ 45,523 $ 7,588 $ — $ 218,387 Cost of revenues 130,260 38,231 5,771 — 174,262 Gross profit 35,016 7,292 1,817 — 44,125 Selling, general and administrative expenses 11,673 3,444 1,573 4,869 21,559 Income (loss) from operations 23,343 3,848 244 (4,869) 22,566 Other income (expense), net 1,021 — 1 78 1,100 Income (loss) before income taxes $ 24,364 $ 3,848 $ 245 $ (4,791) 23,666 Income tax expense (11,959) Net income $ 11,707 Amortization of intangibles $ — $ 331 $ 68 $ — $ 399 Depreciation 280 1,052 222 2 1,556 Property, plant and equipment additions 94 487 57 — 638 Six Months Ended Power Industrial Telecom July 31, 2021 Services Services Services Other Totals Revenues $ 196,176 $ 56,811 $ 6,362 $ — $ 259,349 Cost of revenues 157,165 45,816 5,002 — 207,983 Gross profit 39,011 10,995 1,360 — 51,366 Selling, general and administrative expenses 11,206 3,859 970 4,188 20,223 Income (loss) from operations 27,805 7,136 390 (4,188) 31,143 Other income (expense), net 448 — — 4 452 Income (loss) before income taxes $ 28,253 $ 7,136 $ 390 $ (4,184) 31,595 Income tax expense (7,959) Net income $ 23,636 Amortization of intangibles $ 122 $ 331 $ — $ — $ 453 Depreciation 319 1,200 220 2 1,741 Property, plant and equipment additions 637 16 355 3 1,011

DESCRIPTION OF THE BUSINESS A_2

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jul. 31, 2022
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 United States (the “U.S.”), the Republic of Ireland (“Ireland”) and the United Kingdom (the “U.K.”). GPS and APC, including a consolidated variable interest entity (“VIE”), 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 southeastern region of the U.S. and that are based on its expertise in producing, delivering and installing fabricated metal 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 U.S.
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 the VIE. 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. The condensed consolidated balance sheet as of July 31, 2022, the condensed consolidated statements of earnings and stockholders’ equity for the three and six months ended July 31, 2022 and 2021, and the condensed consolidated statements of cash flows for the three and six months ended July 31, 2022 and 2021 are unaudited. The condensed consolidated balance sheet as of January 31, 2022 has been derived from audited financial statements. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. 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, 2022 (“Fiscal 2022”). 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 July 31, 2022, 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	Accounting Policies There are no recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its condensed consolidated financial statements.
Fair Values	Fair Values 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. Consequently, the account balances of the VIE are included in the Company’s consolidated financial statements, including development costs incurred by the VIE during the project development period. Consideration for the Company’s engineering and financial support provided to the project included the right to build the power plant pursuant to a turnkey engineering, procurement and construction (“EPC”) services contract that was negotiated and announced. GPS provided financing for the development efforts through notes receivable from the consolidated VIE that was established by the project owner. The project owner was unable to obtain the necessary equity financing for the project and GPS ceased providing project development funding. The repayment of the notes to GPS is overdue. Accordingly, the Company believes that the completion of the development of this project has been significantly jeopardized and that it is doubtful that construction of this power plant will occur. Accordingly, during the fourth quarter of Fiscal 2022, we recorded an impairment loss related to the capitalized project development costs of this project in the amount of $7.9 million, of which $2.5 million was attributed to the non-controlling interest. In March 2022, the project owner publicly announced the cancellation of this power plant project.

REVENUES FROM CONTRACTS WITH _2

REVENUES FROM CONTRACTS WITH CUSTOMERS (Tables)	6 Months Ended
REVENUES FROM CONTRACTS WITH CUSTOMERS (Tables)	Jul. 31, 2022
REVENUES FROM CONTRACTS WITH CUSTOMERS
Schedule of consolidated revenues disaggregated by geographical area	Three Months Ended July 31, Six Months Ended July 31, 2022 2021 2022 2021 United States $ 93,949 $ 123,380 $ 174,221 $ 238,871 Republic of Ireland 15,532 7,556 25,186 12,249 United Kingdom 8,629 1,630 18,980 7,787 Other — 442 — 442 Consolidated Revenues $ 118,110 $ 133,008 $ 218,387 $ 259,349

PURCHASED INTANGIBLE ASSETS (Ta

PURCHASED INTANGIBLE ASSETS (Tables)	6 Months Ended
PURCHASED INTANGIBLE ASSETS (Tables)	Jul. 31, 2022
PURCHASED INTANGIBLE ASSETS
Schedule of company's purchased intangible assets, other than goodwill	July 31, 2022 January 31, Estimated Gross Accumulated Net 2022, (net Useful Life Amounts Amortization Amounts amounts) Trade name 15 years $ 4,499 $ 2,000 $ 2,499 $ 2,650 Process certifications 7 years 1,897 1,807 90 226 Customer relationships 10 years 916 610 306 351 Customer contracts < 1 year 114 68 46 95 Totals $ 7,426 $ 4,485 $ 2,941 $ 3,322

COMMITMENTS (Tables)

COMMITMENTS (Tables)	6 Months Ended
COMMITMENTS (Tables)	Jul. 31, 2022
COMMITMENTS
Schedule of future minimum lease payments for the operating leases	Years Ending January 31, 2023 (remainder) $ 640 2024 540 2025 380 2026 250 2027 231 Thereafter 1,025 Total lease payments 3,066 Less interest portion 182 Present value of lease payments 2,884 Less current portion (included in accrued expenses) 894 Non-current portion (included in noncurrent liabilities) $ 1,990

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
STOCK-BASED COMPENSATION (Tables)	Jul. 31, 2022
STOCK-BASED COMPENSATION
Schedule of stock option activity under the Company's stock plans	A summary of stock option activity under the Stock Plans for the six months ended July 31, 2022, along with corresponding weighted average per share amounts, is presented below (shares in thousands): Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2022 1,405 $ 44.35 6.17 $ 10.31 Granted 38 $ 36.78 Exercised (2) $ 32.68 Forfeited (10) $ 56.27 Outstanding, July 31, 2022 1,431 $ 44.08 5.79 $ 10.19 Exercisable, July 31, 2022 1,192 $ 44.83 5.27 $ 10.74 Outstanding, July 31, 2021 1,398 $ 44.42 6.51 $ 10.41 Exercisable, July 31, 2021 1,022 $ 45.34 5.76 $ 11.20
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 six months ended July 31, 2022, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2022 295 $ 7.80 Granted 38 $ 6.68 Vested (94) $ 8.24 Non-vested, July 31, 2022 239 $ 7.45 Non-vested, July 31, 2021 376 $ 8.27
Schedule of changes in restricted stock units	The changes in the maximum number of restricted stock units for the six months ended July 31, 2022, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Outstanding, February 1, 2022 222 $ 31.48 Awarded 117 $ 26.97 Issued (37) $ 38.51 Forfeited (22) $ 40.85 Outstanding, July 31, 2022 280 $ 29.46 Outstanding, July 31, 2021 190 $ 29.73

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
INCOME TAXES (Tables)	Jul. 31, 2022
INCOME TAXES
Schedule of actual income tax expense amounts	Six Months Ended July 31, 2022 2021 Computed expected income tax expense $ (4,970) $ (6,635) Difference resulting from: State income taxes, net of federal tax effect (349) (719) Research and development credits adjustment (6,181) — Deferred tax adjustments (66) (283) Other permanent differences and adjustments, net (393) (322) Income tax expense $ (11,959) $ (7,959)

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	6 Months Ended
NET INCOME PER SHARE (Tables)	Jul. 31, 2022
NET INCOME PER SHARE
Schedule of computations of basic and diluted net income per share	Basic and diluted net income per share amounts are computed as follows (shares in thousands except in the note): Three Months Ended July 31, 2022 2021 Net income $ 4,222 $ 12,870 Weighted average number of shares outstanding – basic 14,134 15,769 Effect of stock awards (1) 113 213 Weighted average number of shares outstanding – diluted 14,247 15,982 Net income per share Basic $ 0.30 $ 0.82 Diluted $ 0.30 $ 0.81 (1) For the three months ended July 31, 2022 and 2021, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options covering an aggregate of 876,734 and 366,500 shares of common stock, respectively. Six Months Ended July 31, 2022 2021 Net income $ 11,707 $ 23,636 Weighted average number of shares outstanding – basic 14,516 15,748 Effect of stock awards (1) 100 230 Weighted average number of shares outstanding – diluted 14,616 15,978 Net income per share Basic $ 0.81 $ 1.50 Diluted $ 0.80 $ 1.48 (1) For the six months ended July 31, 2022 and 2021, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options covering an aggregate of 876,734 and 366,500 shares of common stock, respectively.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
SEGMENT REPORTING (Tables)	Jul. 31, 2022
SEGMENT REPORTING
Schedule of operating results and certain financial position data of the Company's reportable business segments	Three Months Ended Power Industrial Telecom July 31, 2022 Services Services Services Other Totals Revenues $ 91,327 $ 23,022 $ 3,761 $ — $ 118,110 Cost of revenues 71,225 19,551 2,947 — 93,723 Gross profit 20,102 3,471 814 — 24,387 Selling, general and administrative expenses 6,058 1,685 808 2,433 10,984 Income (loss) from operations 14,044 1,786 6 (2,433) 13,403 Other income (expense), net 437 — (1) 69 505 Income (loss) before income taxes $ 14,481 $ 1,786 $ 5 $ (2,364) 13,908 Income tax expense (9,686) Net income $ 4,222 Amortization of intangibles $ — $ 165 $ 68 $ — $ 233 Depreciation 138 508 100 1 747 Property, plant and equipment additions 42 336 22 — 400 Current assets $ 258,771 $ 31,960 $ 4,745 $ 82,717 $ 378,193 Current liabilities 124,320 15,055 1,991 646 142,012 Goodwill 18,476 9,467 90 — 28,033 Total assets 282,783 49,097 8,198 82,992 423,070 Three Months Ended Power Industrial Telecom July 31, 2021 Services Services Services Other Totals Revenues $ 99,004 $ 30,153 $ 3,851 $ — $ 133,008 Cost of revenues 78,496 23,847 3,013 — 105,356 Gross profit 20,508 6,306 838 — 27,652 Selling, general and administrative expenses 5,751 1,977 484 2,119 10,331 Income (loss) from operations 14,757 4,329 354 (2,119) 17,321 Other income (expense), net (262) — — 2 (260) Income (loss) before income taxes $ 14,495 $ 4,329 $ 354 $ (2,117) 17,061 Income tax expense (4,191) Net income $ 12,870 Amortization of intangibles $ 61 $ 164 $ — $ — $ 225 Depreciation 153 593 112 1 859 Property, plant and equipment additions 35 7 123 2 167 Current assets $ 389,998 $ 29,084 $ 3,751 $ 174,823 $ 597,656 Current liabilities 293,002 12,099 1,563 683 307,347 Goodwill 18,476 9,467 — — 27,943 Total assets 422,902 48,655 5,274 175,158 651,989 Six Months Ended Power Industrial Telecom July 31, 2022 Services Services Services Other Totals Revenues $ 165,276 $ 45,523 $ 7,588 $ — $ 218,387 Cost of revenues 130,260 38,231 5,771 — 174,262 Gross profit 35,016 7,292 1,817 — 44,125 Selling, general and administrative expenses 11,673 3,444 1,573 4,869 21,559 Income (loss) from operations 23,343 3,848 244 (4,869) 22,566 Other income (expense), net 1,021 — 1 78 1,100 Income (loss) before income taxes $ 24,364 $ 3,848 $ 245 $ (4,791) 23,666 Income tax expense (11,959) Net income $ 11,707 Amortization of intangibles $ — $ 331 $ 68 $ — $ 399 Depreciation 280 1,052 222 2 1,556 Property, plant and equipment additions 94 487 57 — 638 Six Months Ended Power Industrial Telecom July 31, 2021 Services Services Services Other Totals Revenues $ 196,176 $ 56,811 $ 6,362 $ — $ 259,349 Cost of revenues 157,165 45,816 5,002 — 207,983 Gross profit 39,011 10,995 1,360 — 51,366 Selling, general and administrative expenses 11,206 3,859 970 4,188 20,223 Income (loss) from operations 27,805 7,136 390 (4,188) 31,143 Other income (expense), net 448 — — 4 452 Income (loss) before income taxes $ 28,253 $ 7,136 $ 390 $ (4,184) 31,595 Income tax expense (7,959) Net income $ 23,636 Amortization of intangibles $ 122 $ 331 $ — $ — $ 453 Depreciation 319 1,200 220 2 1,741 Property, plant and equipment additions 637 16 355 3 1,011

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) $ in Millions	3 Months Ended
	Jan. 31, 2022 USD ($)
Description of the Business
Capitalized project development costs	$ 7.9
Non-controlling Interests
Description of the Business
Capitalized project development costs	$ 2.5

REVENUES FROM CONTRACTS WITH _3

REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions	Jul. 31, 2022	Jan. 31, 2022
REVENUES FROM CONTRACTS WITH CUSTOMERS
Retained amounts by project owners	$ 43.6	$ 40.4
Amounts of unpriced change orders included in transaction prices	4.3	7.5

REVENUES FROM CONTRACTS WITH _4

REVENUES FROM CONTRACTS WITH CUSTOMERS - Remaining Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01 $ in Millions	Jul. 31, 2022 USD ($)
REVENUES FROM CONTRACTS WITH CUSTOMERS
Contract backlog amount	$ 372
Contract backlog (as percent)	51%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	3 years

REVENUES FROM CONTRACTS WITH _5

REVENUES FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
Disaggregation of Revenues
Totals	$ 118,110	$ 133,008	$ 218,387	$ 259,349
United States
Disaggregation of Revenues
Totals	93,949	123,380	174,221	238,871
Republic of Ireland
Disaggregation of Revenues
Totals	15,532	7,556	25,186	12,249
United Kingdom
Disaggregation of Revenues
Totals	$ 8,629	1,630	$ 18,980	7,787
Other
Disaggregation of Revenues
Totals		$ 442		$ 442

CASH, CASH EQUIVALENTS AND SH_2

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - Held-to-maturity Securities	6 Months Ended	12 Months Ended
	Jul. 31, 2022	Jan. 31, 2022
Cash and Cash Equivalents
Maturity period	1 year	1 year
Weighted average annual interest rates of CDs (as a percent)	0.90%	0.10%

ACCOUNTS AND NOTES RECEIVABLE (

ACCOUNTS AND NOTES RECEIVABLE (Details) - USD ($) $ in Millions	Jul. 31, 2022	Jan. 31, 2022
ACCOUNTS AND NOTES RECEIVABLE
Allowance for uncollectible accounts	$ 2.4	$ 2.4

PURCHASED INTANGIBLE ASSETS - G

PURCHASED INTANGIBLE ASSETS - Goodwill and Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2022	Jan. 31, 2022	Jul. 31, 2021
Indefinite-Lived Intangible Assets
Goodwill	$ 28,033	$ 28,033	$ 27,943
Intangible Assets - Gross Carrying Amount	7,426
Accumulated Amortization	4,485
Intangible Assets, Net (Excluding Goodwill)	2,941	3,322
TRC.
Indefinite-Lived Intangible Assets
Goodwill		9,500
GPS.
Indefinite-Lived Intangible Assets
Goodwill	$ 18,500
Trade Name
Indefinite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	15 years
Finite Lived Intangible Assets - Gross Carrying Amount	$ 4,499
Accumulated Amortization	2,000
Finite Lived Intangible Assets - Net Amount	$ 2,499	2,650
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	1,807
Finite Lived Intangible Assets - Net Amount	$ 90	226
Customer relationships
Indefinite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	10 years
Finite Lived Intangible Assets - Gross Carrying Amount	$ 916
Accumulated Amortization	610
Finite Lived Intangible Assets - Net Amount	306	351
Customer Contracts
Indefinite-Lived Intangible Assets
Intangible Assets - Gross Carrying Amount	114
Accumulated Amortization	68
Finite Lived Intangible Assets - Net Amount	$ 46	$ 95
Customer Contracts \| Maximum
Indefinite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	1 year

FINANCING ARRANGEMENTS (Details

FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended	12 Months Ended
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions	Apr. 30, 2021	Jul. 31, 2022	Jan. 31, 2021	Jan. 31, 2022
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		$ 3.4
London Interbank Offered Rate (LIBOR)
Financing Arrangements
Interest rate margin on referred rate		1.60%
Revolving Credit Facility
Financing Arrangements
Additional commitment amount	$ 10
Revolving Credit Facility \| London Interbank Offered Rate (LIBOR)
Financing Arrangements
Variable rate	30-day LIBOR
Interest rate margin on referred rate	1.60%		2%
Revolving Credit Facility \| Expires on May 31, 2024
Financing Arrangements
Borrowing available under financing arrangements	$ 50
Letter of Credit
Financing Arrangements
Letters of credit outstanding amount		$ 15.1

COMMITMENTS - Leases (Details)

COMMITMENTS - Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
COMMITMENTS - Leases (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
Operating leases, options to extend			true
Operating leases, options to terminate			true
Operating lease expense	$ 500	$ 1,100	$ 1,319	$ 1,938
Operating lease payments	$ 500	1,100	$ 1,300	1,900
Weighted average lease term	60 months		60 months
Weighted average discount rate	2.40%		2.40%
Future minimum lease payment			$ 500	800
Unsatisfied bonded performance obligations	$ 139,600		139,600
Annual rental rate	540		540
Rent expense	3,000	$ 2,500	5,300	$ 4,900
Bonds outstanding, covering other risks			$ 1,000
London Interbank Offered Rate (LIBOR)
Interest rate margin on referred rate			1.60%
TRC
Annual rental rate	500		$ 500
GPS \| Financial guarantee
Guarantor obligation maximum exposure	$ 3,600		$ 3,600

COMMITMENTS - Future minimum le

COMMITMENTS - Future minimum lease payments (Details) $ in Thousands	Jul. 31, 2022 USD ($)
Operating Leases
2023 (remainder)	$ 640
2024	540
2025	380
2026	250
2027	231
Thereafter	1,025
Total lease payments	3,066
Less interest portion	182
Present value of lease payments	2,884
Less current portion (included in accrued expenses)	$ 894
Less current portion (included in accrued expenses)	Accrued expenses
Non-current portion (included in noncurrent liabilities)	$ 1,990
Non-current portion (included in noncurrent liabilities)	Noncurrent liabilities

COMMITMENTS - Warranties (Detai

COMMITMENTS - Warranties (Details)	6 Months Ended
COMMITMENTS - Warranties (Details)	Jul. 31, 2022
Minimum [Member]
Warranty period	P9M
Maximum [Member]
Warranty period	P24M

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands	6 Months Ended		12 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jan. 31, 2022
STOCK-BASED COMPENSATION
Shares, Outstanding, Beginning balance	1,405
Shares, Granted	38
Shares, Exercised	(2)
Shares, Forfeited	(10)
Shares, Outstanding, Ending balance	1,431	1,398	1,405
Shares, Exercisable	1,192	1,022
Weighted Average Exercise Price, Outstanding, Beginning balance	$ 44.35
Weighted Average Exercise Price, Granted	36.78
Weighted Average Exercise Price, Exercised	32.68
Weighted Average Exercise Price, Forfeited	56.27
Weighted Average Exercise Price, Outstanding, Ending balance	44.08	$ 44.42	$ 44.35
Weighted Average Exercise Price, Exercisable	$ 44.83	$ 45.34
Weighted Average Remaining Term (Years), Outstanding	5 years 9 months 14 days	6 years 6 months 3 days	6 years 2 months 1 day
Weighted Average Remaining Term (Years), Exercisable	5 years 3 months 7 days	5 years 9 months 3 days
Weighted Average Fair Value, Outstanding	$ 10.19	$ 10.41	$ 10.31
Weighted Average Fair Value, Exercisable	$ 10.74	$ 11.20

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	6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021
STOCK-BASED COMPENSATION
Shares, Non-vested, Beginning balance	295
Shares, Granted	38
Shares, Vested	(94)
Shares, Non-vested, Ending balance	239
Shares, Non-vested	239	376
Weighted Average Fair Value, Non-vested, Beginning balance	$ 7.80
Weighted Average Fair Value, Granted	6.68
Weighted Average Fair Value, Vested	8.24
Weighted Average Fair Value, Non-vested, Ending balance	7.45
Weighted Average Fair Value, Non-vested	$ 7.45	$ 8.27

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Change in restricted stock units (Details) - Restricted Stock Units - $ / shares shares in Thousands	6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, Beginning balance (in shares)	222
Awarded (in shares)	117
Issued (in shares)	(37)
Forfeited (in shares)	(22)
Outstanding, Ending balance (in shares)	280
Outstanding (in shares)	280	190
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, Beginning balance Fair value (Per share)	$ 31.48
Awarded, Fair value (Per share)	26.97
Issued, Fair value (Per share)	38.51
Forfeited (Per share)	40.85
Outstanding, Ending balance Fair value (Per share)	29.46
Outstanding, Fair value (per share)	$ 29.46	$ 29.73

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021	Jun. 23, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Cash dividends deemed paid on shares			2,604
Percentage Reduction In The Aggregate Fair Value Of Stock Option			88.50%
Stock compensation expense	$ 1,100	$ 900	$ 1,979	$ 1,609
Unrecognized compensation cost	7,500		$ 7,500
Compensation expense recognize, period			3 years
Intrinsic value of outstanding stock options	500		$ 500
Intrinsic value of exercisable stock options	$ 300		$ 300
Period used for calculations			5 years
Fair value of award as a percentage of market value			50%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Period used for calculations			3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Period used for calculations			5 years
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares of common stock reserved for issuance					500,000
Stock Options Plans [Member]
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 available for award	252,146		252,146
Number of shares of common stock reserved for issuance	1,963,635		1,963,635
Intrinsic value of the stock options exercised			$ 300
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
The number of shares issuable under restricted stock units awarded during the period	47,000	49,000	47,000	49,000
ISOs/NSOs \| Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Incentive stock option award maximum expiration period			10 years
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award
Awarded (in shares)			117,000
Vested			37,000
Renewable Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award
The number of shares issuable under restricted stock units awarded during the period	7,500	10,000	7,500	10,000
Time Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award
The number of shares issuable under restricted stock units awarded during the period	60,000	49,500	60,000	49,500
Senior executives \| Performance-based restricted stock units \| Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Period to become exercisable			3 years
Percentage of the maximum shares for the target number of shares awarded			50%

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021	Jan. 31, 2022
INCOME TAXES
Federal corporate income tax rate (as percent)			21%		21%
Computed expected income tax expense			$ (4,970)	$ (6,635)
State income taxes, net of federal tax effect			(349)	(719)
Research and development credits adjustment			(6,181)
Deferred tax adjustments			(66)	(283)
Other permanent differences and adjustments, net			(393)	(322)
Income tax expense	$ (9,686)	$ (4,191)	$ (11,959)	$ (7,959)

INCOME TAXES - Net Operating Lo

INCOME TAXES - Net Operating Loss Carryback (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 31, 2022	Jan. 31, 2021	Jan. 31, 2020
INCOME TAXES
Increase in loss carryback period for certain losses	5 years
Domestic net operating loss carryback			$ 39.5
Income tax refunds		$ 12.7

INCOME TAXES - Research and Dev

INCOME TAXES - Research and Development Tax Credits (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 31, 2022	Jan. 31, 2019	Jan. 31, 2022	Jan. 31, 2020
Prior period for identify and quantify the amounts of research and development credits		3 years
Research and development tax credit benefit		$ 16.6		$ 0.4
Unrecognized income tax benefits related to research and development credits			$ 5
Unfavorable adjustment	$ 6.2
Income tax refunds and prepaid income taxes	14.9		$ 29.5
Internal Revenue Service (IRS)
Settlement offer from the IRS	$ 7.9

INCOME TAXES - Solar Energy Pro

INCOME TAXES - Solar Energy Projects And Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 31, 2022	Jul. 31, 2022	Jul. 31, 2021	Jan. 31, 2022
Net Investment Income [Line Items]
Payment for equity method investment			$ 4,085
Investment tax credits			3,000
Loss of investment		$ 1,070	(325)
Expected life of investment		6 years
Cash paid for income taxes		$ 1,300	$ 7,500
Investment account balances	$ 1,200	1,200		$ 200
Other income (expense)
Net Investment Income [Line Items]
Loss of investment	$ 500	$ 1,000

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
NET INCOME PER SHARE
Net income	$ 4,222	$ 12,870	$ 11,707	$ 23,636
Weighted average number of shares outstanding - basic	14,134	15,769	14,516	15,748
Effects of stock awards	113	213	100	230
Weighted average number of shares outstanding - diluted	14,247	15,982	14,616	15,978
Basic	$ 0.30	$ 0.82	$ 0.81	$ 1.50
Diluted	$ 0.30	$ 0.81	$ 0.80	$ 1.48

NET INCOME PER SHARE - Addition

NET INCOME PER SHARE - Additional information (Details) - shares	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
NET INCOME PER SHARE
Antidilutive common stock	876,734	366,500	876,734	366,500

CASH DIVIDENDS AND COMMON STO_2

CASH DIVIDENDS AND COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands							1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 29, 2022	Jun. 21, 2022	Apr. 29, 2022	Apr. 11, 2022	Jul. 30, 2021	Apr. 30, 2021	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
CASH DIVIDENDS AND COMMON STOCK REPURCHASES
Regular cash dividend declared per common stock		$ 0.25		$ 0.25			$ 0.25	$ 0.25	$ 0.25	$ 0.50	$ 0.50
Common stock repurchases (in shares)										1,412,592
Common stock repurchased								$ 26,091		$ 53,168
Share Price								$ 37.64		$ 37.64
Regular cash dividend paid per common stock	$ 0.25		$ 0.25		$ 0.25	$ 0.25

CUSTOMER CONCENTRATIONS (Detail

CUSTOMER CONCENTRATIONS (Details) - customer	3 Months Ended		6 Months Ended		12 Months Ended
CUSTOMER CONCENTRATIONS (Details) - customer	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021	Jan. 31, 2022
Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Customer Concentrations
Number of customers			2		3
Customer Concentration Risk [Member] \| Contract Asset
Customer Concentrations
Number of customers			1		2
Customer Concentration Risk [Member] \| Major Customer One [Member] \| Accounts Receivable [Member]
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer			17%		22%
Customer Concentration Risk [Member] \| Major Customer One [Member] \| Contract Asset
Customer Concentrations
Percentage of major customers or segments			14%		31%
Customer Concentration Risk [Member] \| Major Customer Two [Member] \| Accounts Receivable [Member]
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer			10%		15%
Customer Concentration Risk [Member] \| Major Customer Two [Member] \| Contract Asset
Customer Concentrations
Percentage of major customers or segments					13%
Customer Concentration Risk [Member] \| Major Customer Three [Member] \| Accounts Receivable [Member]
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer					12%
Power Industry Services [Member] \| Product Concentration Risk [Member] \| Revenue [Member]
Customer Concentrations
Percentage of major customers or segments	77%	74%	76%	76%
Power Industry Services [Member] \| Customer Concentration Risk [Member] \| Revenue [Member]
Customer Concentrations
Number of customers	2	1	1	1
Power Industry Services [Member] \| Customer Concentration Risk [Member] \| Major Customer One [Member] \| Revenue [Member]
Customer Concentrations
Percentage of major customers or segments	47%	59%	47%	63%
Power Industry Services [Member] \| Customer Concentration Risk [Member] \| Major Customer Two [Member] \| Revenue [Member]
Customer Concentrations
Percentage of major customers or segments	10%
Industry services \| Product Concentration Risk [Member] \| Revenue [Member]
Customer Concentrations
Percentage of major customers or segments	20%	23%	21%	22%
Industry services \| Customer Concentration Risk [Member] \| Revenue [Member]
Customer Concentrations
Number of customers		1		1
Industry services \| Customer Concentration Risk [Member] \| Major Customer One [Member] \| Revenue [Member]
Customer Concentrations
Percentage of major customers or segments		12%		12%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Jul. 31, 2022 USD ($)	Jul. 31, 2021 USD ($)	Jul. 31, 2022 USD ($) segment	Jul. 31, 2021 USD ($)	Jan. 31, 2022 USD ($)
Segment Reporting Information
Operating segment \| segment			1
Revenues	$ 118,110	$ 133,008	$ 218,387	$ 259,349
Cost of revenues	93,723	105,356	174,262	207,983
Gross profit	24,387	27,652	44,125	51,366
Selling, general and administrative expenses	10,984	10,331	21,559	20,223
Income (loss) from operations	13,403	17,321	22,566	31,143
Other income, (expense), net	505	(260)	1,100	452
Income (loss) before income taxes	13,908	17,061	23,666	31,595
Income tax expense	(9,686)	(4,191)	(11,959)	(7,959)
Net income	4,222	12,870	11,707	23,636
Amortization of intangibles	233	225	399	453
Depreciation	747	859	1,556	1,741
Property, plant and equipment additions	400	167	638	1,011
Current assets	378,193	597,656	378,193	597,656	$ 507,284
Current liabilities	142,012	307,347	142,012	307,347	223,027
Goodwill	28,033	27,943	28,033	27,943	28,033
Total assets	423,070	651,989	423,070	651,989	$ 553,585
Other [Member]
Segment Reporting Information
Selling, general and administrative expenses	2,433	2,119	4,869	4,188
Income (loss) from operations	(2,433)	(2,119)	(4,869)	(4,188)
Other income, (expense), net	69	2	78	4
Income (loss) before income taxes	(2,364)	(2,117)	(4,791)	(4,184)
Depreciation	1	1	2	2
Property, plant and equipment additions		2		3
Current assets	82,717	174,823	82,717	174,823
Current liabilities	646	683	646	683
Total assets	82,992	175,158	82,992	175,158
Intercompany Eliminations
Segment Reporting Information
Revenues		1,200		3,200
Power Industry Services [Member]
Segment Reporting Information
Revenues	91,327	99,004	165,276	196,176
Cost of revenues	71,225	78,496	130,260	157,165
Gross profit	20,102	20,508	35,016	39,011
Selling, general and administrative expenses	6,058	5,751	11,673	11,206
Income (loss) from operations	14,044	14,757	23,343	27,805
Other income, (expense), net	437	(262)	1,021	448
Income (loss) before income taxes	14,481	14,495	24,364	28,253
Amortization of intangibles		61		122
Depreciation	138	153	280	319
Property, plant and equipment additions	42	35	94	637
Current assets	258,771	389,998	258,771	389,998
Current liabilities	124,320	293,002	124,320	293,002
Goodwill	18,476	18,476	18,476	18,476
Total assets	282,783	422,902	282,783	422,902
Industrial Services
Segment Reporting Information
Revenues	23,022	30,153	45,523	56,811
Cost of revenues	19,551	23,847	38,231	45,816
Gross profit	3,471	6,306	7,292	10,995
Selling, general and administrative expenses	1,685	1,977	3,444	3,859
Income (loss) from operations	1,786	4,329	3,848	7,136
Income (loss) before income taxes	1,786	4,329	3,848	7,136
Amortization of intangibles	165	164	331	331
Depreciation	508	593	1,052	1,200
Property, plant and equipment additions	336	7	487	16
Current assets	31,960	29,084	31,960	29,084
Current liabilities	15,055	12,099	15,055	12,099
Goodwill	9,467	9,467	9,467	9,467
Total assets	49,097	48,655	49,097	48,655
Telecommunications Infrastructure Services [Member]
Segment Reporting Information
Revenues	3,761	3,851	7,588	6,362
Cost of revenues	2,947	3,013	5,771	5,002
Gross profit	814	838	1,817	1,360
Selling, general and administrative expenses	808	484	1,573	970
Income (loss) from operations	6	354	244	390
Other income, (expense), net	(1)		1
Income (loss) before income taxes	5	354	245	390
Amortization of intangibles	68		68
Depreciation	100	112	222	220
Property, plant and equipment additions	22	123	57	355
Current assets	4,745	3,751	4,745	3,751
Current liabilities	1,991	1,563	1,991	1,563
Goodwill	90		90
Total assets	$ 8,198	$ 5,274	$ 8,198	$ 5,274