Income Taxes (Tables)

12 Months Ended

Jan. 30, 2021

Income Taxes [Abstract]

Income Tax Expense

Income tax expense consists of the following:

	Fiscal Year
	2020			2019(1)
(amounts in thousands)
Federal - current	$	(3,542	)	$	-
State - current		-			44
Deferred		-			-
Income tax (benefit) expense	$	(3,542	)	$	44

⁽¹⁾ Amount adjusted to reflect impact of discontinued operations.

Reconciliation Effective Income Tax Rate

A reconciliation of the Company’s effective income tax rate with the federal statutory rate is as follows:

	Fiscal Year
		2020			2019(1)
Federal statutory rate			21.0	%		21.0	%
State income taxes, net of federal tax effect			0.0	%		0.3	%
Change in Valuation Allowance			(27.7	%)		(21.0	%)
Cash surrender value - insurance / benefit program			6.8	%		0.1	%
Uncertain tax position			(47.6	%)		---	%
Other			(0.1	%)		(0.1	%)
Effective tax rate			(47.6	%)		0.3	%

⁽¹⁾ Amount adjusted to reflect impact of discontinued operations.

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets are as follows:

	January 30, 2021			February 1, 2020
(amounts in thousands)
DEFERRED TAX ASSETS
Accrued Expenses	$	71		$	1,783
Inventory		215			32
Retirement and compensation related accruals		3,981			5,888
Fixed assets		218			6,470
Federal and state net operating loss and credit carry forwards		90,206			83,562
Real estate leases, included deferred rent		-			5,712
Losses on investment		853			896
Others		107			549
Gross deferred tax assets before valuation allowance		95,651			104,892
Less: valuation allowance		(95,022	)		(104,556	)
Total deferred tax assets	$	629		$	336
DEFERRED TAX LIABILITIES
Intangibles	$	(629	)	$	(336	)
Inventory		-			-
Total deferred tax liabilities	$	(629	)	$	(336	)
NET DEFERRED TAX ASSET	$	-		$	-

Reconciliation of Unrecognized Tax Benefits

Amounts presented excluded interest and penalties, where applicable, on unrecognized tax benefits:

	Fiscal Year
	2020			2019
(amounts in thousands)
Unrecognized tax benefits at beginning of year	$	1,930		$	1,930
Increases in tax positions from prior years		-			-
Decreases in tax positions from prior years		(1,517	)		-
Increases in tax positions for current years		-			-
Settlements		-			-
Lapse of applicable statute of limitations		-			-
Unrecognized tax benefits at end of year	$	413		$	1,930