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Income Taxes
 6 Months Ended
Jul. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 9: Income Taxes

The Company recorded an income tax benefit of $2.0 million and $1.9 million during the three and six months ended July 31, 2022 and no income tax expense or benefit during the three and six months ended July 31, 2021. The income tax benefit recorded in the second quarter of fiscal 2023 was primarily attributable to the release of a $2.0 million valuation allowance on certain preexisting deferred tax assets that were realized as a result of deferred tax liabilities assumed in the Company's acquisition of OnSIP in July 2022. See Note 13: Business Acquisition. As of July 31, 2022, the Company continues to maintain a full valuation allowance against its remaining deferred tax assets.

As of July 31, 2022, the Company had unrecognized tax benefits of $8.8 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 July 31, 2022 will significantly increase or decrease within the next twelve months. There were no interest expense or penalties related to unrecognized tax benefits recorded through July 31, 2022.

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.