Taxes on Income (Tables)

12 Months Ended

Feb. 28, 2014

Provision (benefit) for income taxes in the consolidated statements of income consisted of the following components (in thousands):


	Fiscal Year Ended
	February 28, 2014			February 28, 2013
Current:
Federal	$	(2,337	)	$	(1,206	)
State		(25	)		67

		(2,362	)		(1,139	)

Deferred:
Federal		1,632			(217	)
State		244			(77	)

		1,876			(294	)

Total	$	(486	)	$	(1,433	)

Income Before Provision for Taxes

Income before provision for taxes consisted of the following (in thousands):


	Fiscal Year Ended
	February 28, 2014			February 28, 2013

U.S. operations	$	(5,946	)	$	(3,915	)
Foreign operations		—			—


	$	(5,946	)	$	(3,915	)

Provision for Income Taxes Differs from Amount Computed by Applying Federal Statutory Rate

The provision for income taxes differs from the amount computed by applying the federal statutory rate of 34% to income before income taxes as follows (in thousands):


	Fiscal Year Ended
	February 28, 2014			February 28, 2013

Statutory U.S. federal income tax rate	$	(2,022	)	$	(1,331	)
State income taxes, net of federal benefit		(69	)		(6	)
Research and experimentation credits		(50	)		(82	)
Valuation allowance		1,556			—
Non-deductible expenses		12			19
Domestic production activities deduction		—			(38	)
Other		87			5

Taxes at effective income tax rate	$	(486	)	$	(1,433	)

Sources of Temporary Differences and Carry Forwards, and Their Effect on Net Deferred Tax Asset

The sources of the temporary differences and carry forwards, and their effect on the net deferred tax asset consisted of the following (in thousands):


	Fiscal Year Ended
	February 28, 2014			February 28, 2013
Current deferred tax assets (liabilities):
Uniform capitalization costs	$	159		$	586
Inventory reserves		41			1,120
Accrued liabilities		59			500
Allowance for doubtful accounts		15			22
Other		(32	)		(34	)

Net current deferred tax assets		242			2,194

Non-current deferred tax assets:
Amortization of intangibles		241			720
Deferred rent		200			—
State net operating loss carry-forward		351			165
Federal net operating loss carry-forward		1,369			—
Foreign tax credit carry-forward		99			99
Basis difference of property, plant and equipment		56			(299	)
Valuation allowance		(1,556	)		—

Net non-current deferred tax assets		760			685

Net deferred tax assets	$	1,002		$	2,879


Current asset	$	242		$	2,219
Non-current asset		760			660

	$	1,002		$	2,879