XML 26 R15.htm IDEA: XBRL DOCUMENT v3.19.1
Income Taxes
3 Months Ended
Apr. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

 


Note 9:  Income Taxes

The Company recorded income tax benefits of approximately $22,000 and $69,000 during the three months ended April 30, 2019 and 2018, respectively, primarily associated with the Company’s acquisition of Voxter in March 2018. The Company continues to maintain a full valuation allowance against its deferred tax assets.

As of April 30, 2019, the Company had unrecognized tax benefits of $4.8 million, none of which would currently affect the Company's effective tax rate if recognized due to the Company's deferred tax assets being fully offset by a valuation allowance. The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at April 30, 2019 will significantly increase or decrease within the next twelve months. There was no interest expense or penalties related to unrecognized tax benefits recorded through April 30, 2019.

A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances.  Settlement of any particular position could require the use of cash.