Income Taxes

3 Months Ended

Apr. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

Income tax expense was $0.3 million and $0.1 million for the three months ended April 30, 2019 and 2018, respectively. Income tax expense for the three months ended April 30, 2019 are related to foreign income taxes and state minimum taxes. Based on the available objective evidence during the three months ended April 30, 2019, we believe it is more likely than not that the tax benefits of the U.S. losses incurred may not be realized. Accordingly, we recorded a full valuation allowance against the tax benefits of the U.S. losses incurred.

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized through future operations. As a result of our analysis of all available objective evidence, both positive and negative, as of April 30, 2019, we believe it is more likely than not that the deferred tax assets will not be fully realizable. Accordingly, we have provided a full valuation allowance against our deferred tax assets.