Taxes on Income (Tables)

12 Months Ended

Feb. 28, 2015

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


	Fiscal Year Ended
	February 28, 2015			February 28, 2014
Current:
Federal	$	391		$	(2,337	)
State		(114	)		(25	)

		277			(2,362	)

Deferred:
Federal		883			1,632
State		120			244

		1,003			1,876

Total	$	1,280		$	(486	)

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, 2015			February 28, 2014
Statutory U.S. federal income tax rate	$	(1,327	)	$	(2,022	)
State income taxes, net of federal benefit		(114	)		(69	)
Research and experimentation credits		(15	)		(50	)
Valuation allowance		2,739			1,556
Non-deductible expenses		19			12
Other		(22	)		87

Taxes at effective income tax rate	$	1,280		$	(486	)

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,			February 28,
	2015			2014
Current deferred tax assets (liabilities):
Uniform capitalization costs	$	123		$	159
Inventory reserves		183			41
Accrued liabilities		119			59
Allowance for doubtful accounts		19			15
Other		(10	)		(32	)
Valuation Allowance		(434	)		—

Net current deferred tax assets		—			242
Non-current deferred tax assets:
Amortization of intangibles		185			241
Deferred rent		155			200
Unrealized loss on investments		1,035			—
State net operating loss carry-forward		381			351
Federal net operating loss carry-forward		1,908			1,369
Foreign tax credit carry-forward		99			99
Basis difference of property, plant and equipment		97			56
Valuation allowance		(3,860	)		(1,556	)

Net non-current deferred tax assets		—			760

Net deferred tax assets	$	—		$	1,002

Current asset Non-current asset	$	— —		$	242 760

	$	—		$	1,002