Note 4 - Income Taxes (Tables)

12 Months Ended

Jan. 31, 2020

	Years Ended January 31,
	2020			2019		2018
	(in thousands)
Domestic net income (loss) before income taxes	$	2,963		$	6,562	$	(4,793	)
Foreign net (loss) income before income taxes		(6,567	)		5,355		585
Consolidated net (loss) income before income taxes	$	(3,604	)	$	11,917	$	(4,208	)

	Years Ended January 31,
	2020			2019			2018
	(in thousands)
Computed expected tax (benefit) expense	$	(757	)	$	2,503		$	(1,431	)
State income taxes, net of federal income tax expense		(581	)		96			(157	)
Incremental tax expense from foreign operations		1,256			715			923
Equity compensation		(4,198	)		(2,916	)		(1,004	)
Foreign withholding taxes		1,103			1,089			794
Net increase in valuation allowance		16,179			3,224			5,448
Net change in uncertain tax positions		3			(71	)		(81	)
Non-deductible expenses		218			1,149			(407	)
Benefit of tax credits		(1,719	)		(3,483	)		(1,766	)
Subpart F income		27			101			302
U.S. Tax Reform (the “Tax Act”)		—			(1,312	)		1,951
Rate change impact		867			124			187
Other		(53	)		270			98
Total	$	12,345		$	1,489		$	4,857

	January 31,
	2020			2019
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts and sales adjustments	$	600		$	520
Accrued vacation		1,499			1,568
Tax credits		22,077			20,908
Deferred revenue		3,136			2,849
ASC 842 lease liabilities		4,142			—
Net operating loss carry forwards		15,475			10,597
Accrued expenses - other		2,038			1,802
Other comprehensive income		1,603			1,189
Section 263(a) interest capitalization		190			198
Intellectual property		6,250			7,917
Equity compensation		3,579			4,626
Carryforward of Irish amortization		3,614			1,630
Other		1,767			2,345
Total deferred tax assets		65,970			56,149
Less valuation allowance		(50,972	)		(34,898	)
Less netting of unrecognized tax benefits against deferred tax assets		(973	)		(886	)
Deferred tax assets, net of valuation allowance	$	14,025		$	20,365
Deferred tax liabilities:
Depreciation and amortization		(851	)		(804	)
Topic 606: capitalized commissions and cloud costs		(3,054	)		(2,891	)
ASC 842 right of use assets		(3,931	)		—
Other		(355	)		(498	)
Total deferred tax liabilities		(8,191	)		(4,193	)
Total net deferred tax assets	$	5,834		$	16,172

	Years Ended January 31,
	2020			2019
	(in thousands)
Unrecognized tax benefits at beginning of the year	$	1,168		$	1,662
Decreases as a result of tax positions taken in a prior period		—			(26	)
Increases as a result of tax positions taken in the prior period		143			—
Reduction as a result of a lapse of the statute of limitations		(37	)		(44	)
Decreases as a result of settlements with taxing authorities		(103	)		(424	)
Unrecognized tax benefit at end of year	$	1,171		$	1,168