Income Taxes (Tables)

12 Months Ended

Jan. 31, 2020

Income Tax Disclosure [Abstract]

Income tax expense (benefit) reconciled to statutory rate

The income tax expense for the last two years is reconciled to the statutory federal income tax rates of 21% for the tax years ended January 31, 2020 and 2019, respectively, as follows (in thousands):

	2020			2019
Statutory	$	585		$	(235	)
State taxes (net of federal tax)	400			186
Change in valuation allowance	(573		)	831
State rate adjustment	(291		)	(222		)
Change in unrecognized tax benefits	20			1
Stock Compensation	(28		)	(46		)
Tax cuts and jobs act	—			(15		)
Expirations of attributes	345			28
Permanent differences	(17		)	8
Return to provision	(96		)	(39		)
Income tax expense	$	345		$	497

Significant components of expense (benefit)

Significant components of the expense for income taxes attributed to continuing operations are as follows for the years ended January 31 (in thousands):

	2020			2019
Current
Federal	$	—		$	(24	)
State	136			102
	136			78
Deferred
Federal	442			(247		)
State	340			(165		)
	782			(412		)
Change in valuation allowance	(573		)	831
	209			419
Income tax expense	$	345		$	497

Deferred tax assets and liabilities

Deferred tax assets and liabilities are comprised of the following as of January 31 (in thousands):

	2020			2019
Deferred tax assets
Accrued vacation and sick leave	$	1,264		$	892
Retirement plans	5,448			2,748
Insurance reserves	443			381
Warranty	207			182
Net operating loss carryforwards	3,658			5,303
Right of use liabilities	6,067			—
Inventory	1,175			1,320
Business interest expense limitation	224			540
Other	301			765
	$	18,787		$	12,131
Deferred tax liabilities
Tax in excess of book depreciation	$	(802	)	$	(720	)
Right of use assets	(5,519		)	—
Other	(53		)	(57		)
	$	(6,374	)	$	(777	)
Valuation allowance	(1,183		)	(1,756		)
Net long term deferred tax asset	$	11,230		$	9,598

Unrecognized tax benefits

The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended January 31 (in thousands):

	2020			2019
Balances as of February 1,	$	38		$	38
Increases related to prior year tax positions	8			—
Decreases related to prior year tax positions	—			(2		)
Increases related to current year tax positions	18			8
Decreases relating to settlements with taxing authorities	—			—
Decreases related to lapsing of statute of limitations	(4		)	(6		)
Balance as of January 31,	$	60		$	38