Income Taxes (Tables)

12 Months Ended

Jan. 31, 2022

Income Tax Disclosure [Abstract]

Income tax expense (benefit) reconciled to statutory rate

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

	2022		2021
Statutory	$	(782)	$	(625)
State taxes (net of federal tax)	14		9
Change in valuation allowance	12,303		(119)
State rate adjustment	(197)		(104)
Change in unrecognized tax benefits	5		(4)
Stock Compensation	48		85
Expirations of attributes	55		16
Permanent differences	(31)		11
Return to provision	(7)		(13)
Income tax expense (benefit)	$	11,408	$	(744)

Significant components of expense (benefit)

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

	2022		2021
Current
Federal	$	—	$	—
State	92		(2)
	92		(2)
Deferred
Federal	(731)		(555)
State	(256)		(68)
	(987)		(623)
Change in valuation allowance	12,303		(119)
	11,316		(742)
Income tax expense (benefit)	$	11,408	$	(744)

Deferred tax assets and liabilities

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

	2022		2021
Deferred tax assets
Accrued vacation and sick leave	$	943	$	835
Retirement plans	3,930		5,657
Insurance reserves	300		293
Warranty	154		181
Net operating loss carryforwards	4,445		4,501
Right of use liabilities	4,159		5,237
Inventory	2,124		1,287
Business interest expense limitation	—		—
Other	361		324
	$	16,416	$	18,315
Deferred tax liabilities
Tax in excess of book depreciation	$	(984)	$	(924)
Right of use assets	(3,567)		(4,541)
Other	(54)		(70)
	$	(4,605)	$	(5,535)
Valuation allowance	(11,412)		(1,064)
Net long term deferred tax asset	$	399	$	11,716

Unrecognized tax benefits

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

	2022		2021
Balances as of February 1,	$	54	$	60
Increases related to prior year tax positions	—		—
Decreases related to prior year tax positions	(1)		(4)
Increases related to current year tax positions	10		8
Decreases related to lapsing of statute of limitations	(6)		(10)
Balance as of January 31,	$	57	$	54