Income Taxes (Tables)

12 Months Ended

Jan. 31, 2019

Income Taxes

Schedule of Components of Income Tax (Expense) Benefit

Income taxes consist of the following:

	Fiscal Year
	2018		2017
Current tax (expense) benefit:
Federal	$	7,000	$	—
State		(7,000)		(11,000)
Total current provision		—		(11,000)
Deferred tax benefit:
Federal		—		95,000
State		—		—
Total deferred tax benefit		—		95,000
Current and deferred tax benefit	$	—	$	84,000

Schedule of Effective Income Tax Rate Reconciliation

The income tax benefit differs from the amount computed using the federal statutory income tax rates of 21% and 32.9% for fiscal 2018 and 2017, respectively, as follows:

	Fiscal Year
	2018		2017
Federal tax benefit at statutory rate	$	(1,232,000)	$	1,047,000
State and local taxes, net of federal benefit (expense)		(95,000)		195,000
Change in valuation allowance		(767,000)		4,505,000
Permanent items:
Incentive stock options		18,000		(112,000)
Change in fair value of warrants liability		—		15,000
Other		1,000		(24,000)
Reserve for uncertain tax position		32,000		(19,000)
R&D Credit (Federal)		(158,000)		219,000
R&D Credit (State)		134,000		(129,000)
Tax Cuts and Jobs Act		—		(5,827,000)
Expiring carryforwards		1,965,000		—
Other		102,000		214,000
Income tax benefit	$	—	$	84,000

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of these temporary differences and credits are as follows:

	January 31,
	2019		2018
Deferred tax assets:
Allowance for doubtful accounts	$	84,000	$	91,000
Deferred revenue		63,000		155,000
Accruals		141,000		71,000
Net operating loss carryforwards		9,532,000		10,617,000
Stock compensation expense		205,000		236,000
Property and equipment		30,000		109,000
R&D credit		1,102,000		1,144,000
Other		133,000		117,000
Total deferred tax assets		11,290,000		12,540,000
Valuation allowance		(11,045,000)		(11,813,000)
Net deferred tax assets		245,000		727,000
Deferred tax liabilities:
Finite-lived intangible assets		(245,000)		(727,000)
Total deferred tax liabilities		(245,000)		(727,000)
Net deferred tax liabilities	$	—	$	—

Schedule of Gross Unrecognized Tax Benefits

	2018		2017
Beginning of fiscal year	$	295,000	$	290,000
Additions for tax positions for the current year		32,000		62,000
Additions for tax positions of prior years		—		3,000
Subtractions for tax positions of prior years		(52,000)		(60,000)
End of fiscal year	$	275,000	$	295,000