Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.22.1
Income Taxes
 12 Months Ended
Jan. 31, 2022
Income Taxes  
Income Taxes

Note 17. Income Taxes

 

The income tax provision for the year ended January 31, 2022 contains the following components (in thousands):

 

Current

 

 

 

Federal

 

 $ 362

 

State

 

 

 77

 

Total Current

 

 

 439

 

Deferred

 

 

 

 

Federal

 

 

 327

 

State

 

 

 69

 

Total Deferred

 

 

 396

 

Total Provision

 

 $ 835

 

 

The components of the net deferred tax liability as of January 31, 2022 are as follows (in thousands):

 

Stock compensation

 

 $ 406

 

Total deferred tax assets

 

 

 406

 

Less valuation allowance

 

 

 -

 

Net deferred tax asset

 

 

 406

 

 

 

 

 

 

Fixed assets

 

 

 (116 )

Crypto fair value adjustments

 

 

 (536 )

Intangibles

 

 

 (371 )

Total deferred tax liabilities

 

 

 (1,023 )

 

 

 

 

 

Net deferred tax liability

 

 $ (617 )

 

 

 

 

 

Net change in valuation allowance

 

 $ -

 

A reconciliation of the income taxes at the federal statutory rate to the effective tax rate for the year ended January 31, 2022 is as follows ($ in thousands):

 

Income before taxes

 

 $ 3,152

 

 

 

 

 

 

 

 

 

 

 

 

Statutory rate in U.S.

 

 

 

 

 

 

 21.00 %

 

 

 

 

 

 

 

 

 

Tax expense at the statutory tax rate

 

 

 662

 

 

 

 21.00 %

Permanent differences

 

 

 69

 

 

 

 2.19 %

State taxes

 

 

 116

 

 

 

 3.68 %

Return to provision true up

 

 

 (12 )

 

(0.35%)

 

Tax on income

 

 

 835

 

 

 

 26.52 %

 

The Company is in the process of filing back income tax returns from 2018 through the current year and subject to IRS examination for all years. The Company has not reserved for any interest and penalty associated with the filings. Due to the non-filing of income tax returns, statutes of limitations on the potential examination of those income tax periods will continue to run until the returns are filed, at which time the statutes will begin. The Company expects to file all past due income tax returns within the next 12 months.