Taxes on Income (Tables)

12 Months Ended

Feb. 28, 2017

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


	Fiscal Year Ended
	February 28,		February 29,
	2017		2016
Current:
Federal	$	—	$	—
State		19		7

		19		7

Deferred:
Federal		—		—
State		—		—

		—		—

Total	$	19	$	7

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, 2017			February 29, 2016
Statutory U.S. federal income tax rate	$	(370	)	$	(863	)
State income taxes, net of federal benefit		19			7
Valuation allowance		530			791
Other		(160	)		(65	)

Taxes at effective income tax rate	$	19		$	7

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 28,			February 29,
	2017			2016
Current deferred tax assets(liabilities):
Uniform capitalization costs	$	87		$	141
Inventory reserves		703			470
Accrued liabilities		127			114
Allowance for doubtful accounts		7			6
Other		(3	)		(22	)
Valuation Allowance		(921	)		(709	)

Net current deferred tax assets		—			—
Non-current deferred tax assets:
Amortization of intangibles		55			81
Deferred rent		67			111
Non-deductible losses		2,107			2,285
State net operating loss carry-forward		534			491
Federal net operating loss carry-forward		3,174			2,622
Federal tax credit carry forward		318			318
Foreign tax credit carry-forward		99			99
Basis difference of property, plant and equipment		106			135
Valuation allowance		(6,460	)		(6,142	)

Net non-current deferred tax assets		—			—

Net deferred tax assets	$	—		$	—

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

	$	—		$	—