Taxes on Income (Tables)

12 Months Ended

Feb. 29, 2016

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


	Fiscal Year Ended
	February 29,		February 28,
	2016		2015
Current:
Federal	$	—	$	391
State		—		(114	)

		—		277

Deferred:
Federal		—		883
State		—		120

		—		1,003

Total	$	—	$	1,280

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 29, 2016			February 28, 2015
Statutory U.S. federal income tax rate	$	(2,269	)	$	(1,327	)
State income taxes, net of federal benefit		(196	)		(114	)
Research and experimentation credits		—			(15	)
Valuation allowance		2,483			2,739
Non-deductible expenses		—			19
Other		(18	)		(22	)

Taxes at effective income tax rate	$	—		$	1,280

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):


	February 29,			February 28,
	2016			2015
Current deferred tax assets(liabilities):
Uniform capitalization costs	$	141		$	123
Inventory reserves		470			183
Accrued liabilities		114			119
Allowance for doubtful accounts		6			19
Other		(22	)		(10	)
Valuation Allowance		(709	)		(434	)

Net current deferred tax assets		—			—
Non-current deferred tax assets:
Amortization of intangibles		81			185
Deferred rent		111			155
Non-deductible losses		2,285			1,035
State net operating loss carry-forward		491			381
Federal net operating loss carry-forward		2,622			1,908
Federal tax credit carry forward		318			—
Foreign tax credit carry-forward		99			99
Basis difference of property, plant and equipment		135			97
Valuation allowance		(6,142	)		(3,860	)

Net non-current deferred tax assets		—			—

Net deferred tax assets	$	—		$	—

Current asset Non-current asset	$	— —		$	— —

	$	—		$	—