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Note 3 - Correction of Immaterial Errors
 12 Months Ended
Jan. 31, 2020
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]
Note
3
 - Correction of immaterial errors
 
In the
fourth
quarter of
2019,
management discovered prior period errors that accumulated over several years relating to accounting for leases with escalation clauses.
The cumulative adjustment for the errors covering the period from
February 1, 2018
to
January 
31,
 
2020
was approximately
$0.6
 million. The adjustment applicable to the beginning retained earnings as
February 1, 2018
was approximately
$0.6
million and the adjustment to the consolidated statement of operations for the year ended
January 31, 2019
was less than
$0.1
million. 
  
 
Pursuant to the guidance of Staff Accounting Bulletin ("SAB")
No.
99,
Materiality,
the Company concluded that the errors were
not
material to any of its prior period financial statements. Although the errors were immaterial to prior periods, the prior period financial statements were revised, in accordance with SAB
No.
108,
Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements
, due to the significance of the out-of-period correction.
 
A reconciliation of the effects of the adjustments to the previously reported balance sheet at
January 
31,
 
2019
follows:
 
(In thousands)
  
As Reported
    
Adjustment
    
Revised
  
Other long-term liabilities
   $
688
     $
659
     $
1,347
  
Total long-term liabilities
    
12,757
      
659
      
13,416
  
Accumulated deficit
    
(3,632
 )    
(659
 )    
(4,291
 )
Total stockholders' equity
    
52,360
      
(659
 )    
51,701
  
A reconciliation of the effects of the adjustments to the previously reported statement of operations for the year ended
January 
31,
 
2019
follows:
 
(In thousands)
  
As Reported
    
Adjustment
    
Revised
  
Cost of Sales
   $
105,626
     $
21
     $
105,647
  
Gross profit
    
23,339
      
(21
 )    
23,318
  
Income from operations
    
2,743
      
(21
 )    
2,722
  
Income from operations before income taxes
    
1,621
      
(21
 )    
1,600
  
Net loss
    
(529
 )    
(21
 )    
(550
 )
A reconciliation of the effects of the adjustments to the previously reported statement of comprehensive loss for the year ended
January 
31,
 
2019
follows:
 
(In thousands)
  
As Reported
    
Adjustment
    
Revised
  
Net loss
   $
(529
 )   $
(21
 )   $
(550
 )
Comprehensive loss
    
(1,943
 )    
(21
 )    
(1,964
 )
A reconciliation of the effects of the adjustments to the previously reported statement of cash flows for the year ended
January 
31,
 
2019
follows:
 
(In thousands)
  
As Reported
    
Adjustment
    
Revised
  
Net loss
   $
(529
 )   $
(21
 )   $
(550
 )
Other assets and liabilities
    
508
      
21
      
529
  
A reconciliation of the effects of the adjustments to the previously reported statement of stockholders' equity for the year ended
January 
31,
 
2019
follows:
 
(In thousands)
  
As Reported
    
Adjustment
    
Revised
  
Net loss
   $
(529
 )   $
(21
 )   $
(550
 )
Accumulated deficit
    
(3,632
 )    
(659
 )    
(4,291
 )
Stockholders' equity
    
52,360
      
(659
 )    
51,701
  
A reconciliation of the effects of the adjustments to the previously reported statement of stockholders' equity for the year ended
January 
31,
 
2018
follows:
 
(In thousands)
  
As Reported
    
Adjustment
    
Revised
  
Accumulated deficit
   $
(3,103
 )   $
(638
 )   $
(3,741
 )
Stockholders' equity
    
51,812
      
(638
 )   $
51,174