Income Taxes (Tables)

12 Months Ended

Feb. 28, 2018

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


	Fiscal Year Ended
	February 28,		February 28,
	2018		2017
Current:
Federal	$	—	$	—
State		—		19

		—		19

Deferred:
Federal		—		—
State		—		—

		—		—

Total	$	—	$	19

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% for the fiscal year ended February 28, 2017 and 24% for the fiscal year ended February 28, 2018 taxable income as follows (in thousands):


	Fiscal Year Ended
	February 28, 2018			February 28, 2017
Statutory U.S. federal income tax rate		(780	)	$	(370	)
State income taxes, net of federal benefit		(31	)		19
Tax rate adjustment – 34% to 21%		2,243			—
Valuation allowance		(1,593	)		530
Other		161			(160	)

Taxes at effective income tax rate	$	—		$	19

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 28,
	2018			2017
Current deferred tax assets(liabilities):
Uniform capitalization costs	$	88		$	87
Inventory reserves		336			703
Accrued liabilities		70			127
Allowance for doubtful accounts		5			7
Other		(1	)		(3	)
Valuation Allowance		(498	)		(921	)

Net current deferred tax assets		—			—
Non-current deferred tax assets:
Amortization of intangibles		19			55
Deferred rent		14			67
Non-deductible losses		1,373			2,107
State net operating loss carry-forward		732			534
Federal net operating loss carry-forward		2,733			3,174
Federal tax credit carry forward		318			318
Foreign tax credit carry-forward		99			99
Basis difference of property, plant and equipment		33			106
Valuation allowance		(5,321	)		(6,460	)

Net non-current deferred tax assets		—			—

Net deferred tax assets	$	—		$	—