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Note 16 - Income Taxes | 12 Months Ended
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Jan. 31, 2022
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 16. Income Taxes
|  | Year Ended January 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Loss from continuing operations before income taxes is attributable to the following jurisdictions: |  |  |  |  |  |  |  |
Domestic |  | $ | (11,618 | ) |  | $ | (8,851 | )
Foreign |  |  | (2,000 | ) |  |  | (4,615 | )
Total |  | $ | (13,618 | ) |  | $ | (13,466 | )
The components of income tax expense (benefit) for continuing operations were as follows: |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |
Domestic |  | $ | 27 |  |  | $ | 22 |
Foreign |  |  | 40 |  |  |  | 515 |
|  |  | 67 |  |  |  | 537 |
Deferred: |  |  |  |  |  |  |  |
Domestic |  |  | — |  |  |  | — |
Foreign |  |  | (106 | ) |  |  | (1 | )
|  |  | (106 | ) |  |  | (1 | )
Income tax (benefit) expense |  | $ | (39 | ) |  | $ | 536 |
The following is a reconciliation of expected to actual income tax expense (benefit) for continuing operations:
|  | Year Ended January 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Federal income tax at 21% |  | $ | (2,860 | ) |  | $ | (2,828 | )
Changes in tax rates |  |  | — |  |  |  | (50 | )
Permanent differences |  |  | (144 | ) |  |  | 413 |
Foreign effective tax rate differential |  |  | (8 | ) |  |  | 66 |
Foreign withholding taxes, including penalties and interest |  |  | — |  |  |  | 29 |
Valuation allowance on deferred tax assets |  |  | 2,931 |  |  |  | 2,682 |
Excess tax deficiency for share-based payments under ASU 2016-09 |  |  | 13 |  |  |  | 66 |
Other |  |  | 29 |  |  |  | 158 |
|  | $ | (39 | ) |  | $ | 536 |
The components of the Company’s deferred taxes for continuing operations consisted of the following:
|  | As of January 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating losses |  | $ | 20,282 |  |  | $ | 17,177 |
Tax credit carry forwards |  |  | 165 |  |  |  | 139 |
Stock option book expense |  |  | 833 |  |  |  | 718 |
Allowance for doubtful accounts |  |  | 102 |  |  |  | — |
Inventory |  |  | 835 |  |  |  | 565 |
Accruals not yet deductible for tax purposes |  |  | 130 |  |  |  | 281 |
Fixed assets |  |  | 289 |  |  |  | 232 |
Intangible assets |  |  | 391 |  |  |  | 445 |
Other |  |  | 623 |  |  |  | 599 |
Gross deferred tax assets |  |  | 23,650 |  |  |  | 20,156 |
Valuation allowance |  |  | (23,650 | ) |  |  | (20,156 | )
Deferred tax assets |  |  | — |  |  |  | — |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Other |  |  | (92 | ) |  |  | (198 | )
Deferred tax liabilities |  |  | (92 | ) |  |  | (198 | )
Unrecognized tax benefits |  |  | — |  |  |  | — |
Total deferred tax liabilities, net |  |  | (92 | ) |  | $ | (198 | )
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the global pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company does not believe the CARES Act will have a material impact on the Company’s future income tax expense or the related tax assets and liabilities. The Company has determined that, due to the potential requirement for additional investment and working capital to achieve its objectives, the undistributed earnings of foreign subsidiaries as of January 31, 2022, are not deemed indefinitely reinvested outside of the United States. Furthermore, the Company has concluded that any deferred taxes with respect to the undistributed foreign earnings would be immaterial. Therefore, the Company has not recorded a deferred tax liability associated with the undistributed foreign earnings as of January 31, 2022. Included in deferred tax assets is approximately $833,000 related to stock-based compensation, including non-qualified stock options. Recent market prices for the Company’s Common Stock remain below the exercise price of a number of options outstanding as of January 31, 2022. Should the market price of the Company’s Common Stock remain below the exercise price of the options, these stock options will expire without exercise. In accordance with the provisions of ASC 718-740-10, a valuation allowance has not been computed based on the decline in stock price. As of January 31, 2022, the Company has recorded valuation allowances of approximately $23.7 million related to deferred tax assets for continuing operations. These deferred tax assets relate primarily to net operating loss carryforwards in the United States and other jurisdictions. The valuation allowances were determined based on management’s judgment as to the likelihood that the deferred tax assets would not be realized. The judgment was based on an evaluation of available evidence, both positive and negative. On January 31, 2022, the Company had tax credit carry forwards for continuing operations of approximately $165,000, which amounts can be carried forward through at least 2026. As of January 31, 2022, and 2021 the company had no unrecognized tax benefits attributable to uncertain tax positions. The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. The Company files U.S. federal income tax returns as well as separate returns for its foreign subsidiaries within their local jurisdictions. The Company’s U.S. federal tax returns are subject to examination by the IRS for fiscal years ended January 31, 2019, through 2022. The Company’s tax returns may also be subject to examination by state and local revenue authorities for fiscal years ended January 31, 2017, through 2022. The Company’s Singapore income tax returns are subject to examination by the Singapore tax authorities for fiscal years ended January 31, 2017, through 2022. The Company’s tax returns in other foreign jurisdictions are generally subject to examination for the fiscal years ended January 31, 2018 through January 31, 2022.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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