Income Taxes (Tables)

12 Months Ended

Jan. 31, 2024

Income Tax Disclosure [Abstract]

Income tax expense (benefit) reconciled to statutory rate

The income tax expense (benefit) for fiscal years ended January 31, 2024 and 2023 is reconciled to the statutory federal income tax rates of 21% for the tax years ended January 31, is as follows (in thousands):

	2024		2023
Statutory	$	6,140	$	1,689
State taxes (net of federal tax)	1,346		746
Change in valuation allowance	(613)		(10,546)
State rate adjustment	164		6
Change in unrecognized tax benefits	34		35
Stock compensation	16		(397)
Expirations of attributes	56		17
Permanent differences	69		(13)
Return to provision true-up	118		(41)
Income tax expense (benefit)	$	7,330	$	(8,504)

Significant components of expense (benefit)

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

	2024		2023
Current
Federal	$	5,567	$	82
State	963		125
	6,530		207
Deferred
Federal	301		1,524
State	1,112		311
	1,413		1,835
Change in valuation allowance	(613)		(10,546)
	800		(8,711)
Income tax expense (benefit)	$	7,330	$	(8,504)

Deferred tax assets and liabilities

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

	2024		2023
Deferred tax assets
Accrued vacation and sick leave	$	2,143	$	1,925
Retirement plans	2,391		2,729
Insurance reserves	197		325
Warranty	128		156
Net operating loss carryforwards	599		1,949
Right of use liability	1,935		3,087
Inventory	1,878		1,820
Other	536		401
	9,807		12,392
Deferred tax liabilities
Tax in excess of book depreciation	(882)		(987)
Right of use assets	(1,663)		(2,630)
Other	(377)		(111)
	(2,922)		(3,728)
Valuation allowance	(251)		(864)
Net long term deferred tax asset	$	6,634	$	7,800

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):

	2024		2023
Beginning balances as of January 31,	$	62	$	57
Increases related to prior year tax positions	8		—
Decreases related to prior year tax positions	—		(5)
Increases related to current year tax positions	33		19
Decreases related to lapsing of statute of limitations	(11)		(9)
Ending balance as of January 31,	$	92	$	62