Income Taxes (Tables)

12 Months Ended

Jan. 31, 2023

Income Tax Disclosure [Abstract]

Income tax expense (benefit) reconciled to statutory rate

The income tax (benefit) expense 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):

	2023		2022
Statutory	$	1,689	$	(782)
State taxes (net of federal tax)	746		14
Change in valuation allowance	(10,546)		12,303
State rate adjustment	(397)		(197)
Change in unrecognized tax benefits	6		5
Stock compensation	35		48
Expirations of attributes	17		55
Permanent differences	(13)		(31)
Return to provision	(41)		(7)
Income tax (benefit) expense	$	(8,504)	$	11,408

Significant components of expense (benefit)

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

	2023		2022
Current
Federal	$	82	$	—
State	125		92
	207		92
Deferred
Federal	1,524		(731)
State	311		(256)
	1,835		(987)
Change in valuation allowance	(10,546)		12,303
	(8,711)		11,316
Income tax (benefit) expense	$	(8,504)	$	11,408

Deferred tax assets and liabilities

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

	2023		2022
Deferred tax assets
Accrued vacation and sick leave	$	1,925	$	943
Retirement plans	2,729		3,930
Insurance reserves	325		300
Warranty	156		154
Net operating loss carryforwards	1,949		4,445
Right of use liability	3,087		4,159
Inventory	1,820		2,124
Other	401		361
	12,392		16,416
Deferred tax liabilities
Tax in excess of book depreciation	(987)		(984)
Right of use assets	(2,630)		(3,567)
Other	(111)		(54)
	(3,728)		(4,605)
Valuation allowance	(864)		(11,412)
Net long term deferred tax asset	$	7,800	$	399

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):

	2023		2022
Balances as of February 1,	$	57	$	54
Increases related to prior year tax positions	—		—
Decreases related to prior year tax positions	(5)		(1)
Increases related to current year tax positions	19		10
Decreases related to lapsing of statute of limitations	(9)		(6)
Balance as of January 31,	$	62	$	57