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Income Taxes (Tables) | 12 Months Ended
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Jan. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income before Income Taxes | The components of income (loss) before income taxes are as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Domestic |  | $ | 5,046 |  |  | $ | (1,193 | ) |  | $ | 1,930 |
Foreign |  |  | 1,988 |  |  |  | 3,372 |  |  |  | (560 | )
|  | $ | 7,034 |  |  | $ | 2,179 |  |  | $ | 1,370 |
Components of Provision for Income Taxes | The components of the provision/(benefit) for income taxes are as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (183 | ) |  | $ | 1,272 |  |  | $ | 660 |
State |  |  | 76 |  |  |  | 224 |  |  |  | 221 |
Foreign |  |  | 501 |  |  |  | 420 |  |  |  | 368 |
|  |  | 394 |  |  |  | 1,916 |  |  |  | 1,249 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 180 |  |  | $ | (910 | ) |  | $ | (1,364 | )
State |  |  | 177 |  |  |  | (189 | ) |  |  | (282 | )
Foreign |  |  | (146 | ) |  |  | 78 |  |  |  | 8 |
|  |  | 211 |  |  |  | (1,021 | ) |  |  | (1,638 | )
|  | $ | 605 |  |  | $ | 895 |  |  | $ | (389 | )
Reconciliation of income tax provision/(benefit) With The Amount Computed By Applying The Statutory Federal Income Tax Rate To The Income Before Income Tax Provision/(benefit) | Total income tax provision/(benefit) differs from the expected tax provision/(benefit) as a result of the following:
|  | 2022 |  |  | 2021 |  |  | 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Income Tax Provision at Statutory Rate |  | $ | 1,477 |  |  | $ | 458 |  |  | $ | 288 |
Return to Provision Adjustment |  |  | 368 |  |  |  | (2 | ) |  |  | (207 | )
State Taxes, Net of Federal Tax Effect |  |  | 143 |  |  |  | 28 |  |  |  | (48 | )
Denmark Statutory Audit |  |  | — |  |  |  | 341 |  |  |  | — |
Foreign Rate Differential |  |  | 61 |  |  |  | 197 |  |  |  | 315 |
Change in Valuation Allowance |  |  | 57 |  |  |  | (81 | ) |  |  | 256 |
Meals and Entertainment |  |  | 9 |  |  |  | 11 |  |  |  | 31 |
Canada Withholding Taxes |  |  | — |  |  |  | 62 |  |  |  | — |
Global Intangible Low Taxed Income |  |  | — |  |  |  | 14 |  |  |  | 107 |
Foreign Tax Credits |  |  | — |  |  |  | — |  |  |  | (344 | )
Foreign Derived Intangible Income |  |  | (55 | ) |  |  | (150 | ) |  |  | (107 | )
Share Based Compensation |  |  | (95 | ) |  |  | 171 |  |  |  | (145 | )
R&D Credits |  |  | (180 | ) |  |  | (157 | ) |  |  | (209 | )
Change in Reserves Related to ASC 740 Liability |  |  | (245 | ) |  |  | (10 | ) |  |  | (352 | )
PPP Loan Forgiveness |  |  | (937 | ) |  |  | — |  |  |  | — |
Other |  |  | 2 |  |  |  | 13 |  |  |  | 26 |
|  | $ | 605 |  |  | $ | 895 |  |  | $ | (389 | )
Tax Effects of Temporary Differences that gave Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities are as follows:
|  | January 31, |
|  | 2022 |  |  | 2021 |
(In thousands) |  |  |  |  |  |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Inventory |  | $ | 2,159 |  |  | $ | 2,700 |
Honeywell Royalty Liability |  |  | 2,655 |  |  |  | 2,590 |
State R&D Credits |  |  | 1,925 |  |  |  | 1,546 |
Share-Based Compensation |  |  | 593 |  |  |  | 600 |
Bad Debt |  |  | 213 |  |  |  | 245 |
Warranty Reserve |  |  | 198 |  |  |  | 176 |
Compensation Accrual |  |  | 322 |  |  |  | 159 |
Net Operating Loss |  |  | 152 |  |  |  | 154 |
ASU 842 Adjustment – Lease Liability |  |  | 93 |  |  |  | 125 |
Unrecognized State Tax Benefits |  |  | 64 |  |  |  | 101 |
Foreign Tax Credit |  |  | 154 |  |  |  | 83 |
Deferred Service Contract Revenue |  |  | 61 |  |  |  | 68 |
Other |  |  | 224 |  |  |  | 308 |
|  |  | 8,813 |  |  |  | 8,855 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Accumulated Tax Depreciation in Excess of Book Depreciation |  |  | 455 |  |  |  | 752 |
Intangibles |  |  | 767 |  |  |  | 399 |
ASU 842 Adjustment – Lease Liability |  |  | 90 |  |  |  | 119 |
Other |  |  | 318 |  |  |  | 307 |
|  |  | 1,630 |  |  |  | 1,577 |
Subtotal |  |  | 7,183 |  |  |  | 7,278 |
Valuation Allowance |  |  | (1,778 | ) |  |  | (1,721 | )
Net Deferred Tax Assets |  | $ | 5,405 |  |  | $ | 5,557 |
Deferred taxes are reflected in the consolidated balance sheet as follows: |  |  |
|  | January 31, |
|  | 2022 |  |  | 2021 |
Deferred Tax Assets |  |  | 5,651 |  |  |  | 5,941 |
Deferred Tax Liabilities |  |  | (246 | ) |  |  | (384 | )
Total Net Deferred Tax Assets |  | $ | 5,405 |  |  | $ | 5,557 |
Changes in Balance of Unrecognized Tax Benefits, Excluding Interest and Penalties |
|  | 2022 |  |  | 2021 |  |  | 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Balance , beginning of the year |  | $ | 384 |  |  | $ | 362 |  |  | $ | 618 |
Increases in prior period tax positions |  |  | 63 |  |  |  | 59 |  |  |  | — |
Increases in current period tax positions |  |  | 67 |  |  |  | 5 |  |  |  | 2 |
Reductions related to lapse of statutes of limitations |  |  | (211 | ) |  |  | (42 | ) |  |  | (26 | )
Reductions related to settlement with tax authorities |  |  | — |  |  |  | — |  |  |  | (232 | )
Balance, end of the year |  | $ | 303 |  |  | $ | 384 |  |  | $ | 362 |

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