Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Apr. 15, 2015 | Jul. 31, 2013 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | COMARCO INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -30 | ||
Entity Common Stock, Shares Outstanding | 14,684,165 | ||
Entity Public Float | $2,300,000 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 22252 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Jan-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $2,140 | $1,096 |
Accounts receivable, net of reserves of $0 | 122 | 128 |
Other current assets | 7 | 17 |
Total current assets | 2,269 | 1,241 |
Property and equipment, net | 8 | 14 |
Restricted cash | 5 | 82 |
Total assets | 2,282 | 1,337 |
Current Liabilities | ||
Accounts payable | 737 | 4,363 |
Accrued liabilities | 848 | 1,012 |
Income taxes payable | 40 | |
Loan payable | 1,167 | |
Derivative liabilities | 2,520 | |
Total current liabilities | 1,625 | 9,062 |
Total liabilities | 1,625 | 9,062 |
Stockholders' Equity (Deficit): | ||
Preferred stock, no par value, 10,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.10 par value, 50,625,000 shares authorized; 14,684,165 shares issued and outstanding at January 31, 2015 and 2014, respectively | 1,468 | 1,468 |
Additional paid-in capital | 18,322 | 15,980 |
Accumulated deficit | -19,133 | -25,173 |
Total stockholders' equity (deficit) | 657 | -7,725 |
Total liabilities and stockholders' equity (deficit) | 2,282 | 1,337 |
Suppliers [Member] | ||
Current Assets | ||
Accounts receivable, net of reserves of $0 | $122 | $128 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, reserves (in Dollars) | $0 | $0 |
Preferred stock, par value (in Dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 50,625,000 | 50,625,000 |
Common stock, shares issued | 14,684,165 | 14,684,165 |
Common stock, shares outstanding | 14,684,165 | 14,684,165 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Revenue | $0 | $4,429 |
Cost of revenue | -1,099 | 3,930 |
Gross profit | 1,099 | 499 |
Selling, general and administrative expenses | 1,232 | 1,999 |
Engineering and support expenses | 309 | 733 |
1,541 | 2,732 | |
Operating loss | -442 | -2,233 |
Interest expense, net | -380 | 398 |
Change in fair value of derivative liabilities | 226 | -575 |
Other income, net - litigation settlement | 6,678 | |
Income (loss) from operations before income taxes | 6,082 | -2,056 |
Income tax expense | 42 | 2 |
Net income (loss) | $6,040 | ($2,058) |
Basic loss per share: (in Dollars per share) | $0.41 | ($0.14) |
Diluted loss per share: (in Dollars per share) | $0.41 | ($0.14) |
Weighted-average shares outstanding: | ||
Basic (in Shares) | 14,684 | 14,397 |
Diluted (in Shares) | 14,863 | 14,397 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Deficit) (USD $) | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Restricted Stock [Member] | Total |
In Thousands | Restricted Stock Units (RSUs) [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Balance at January 31 at Jan. 31, 2013 | $764 | $15,577 | ($23,115) | ($6,774) | ||||
Net loss/income | -2,058 | -2,058 | ||||||
Common stock issued | 644 | 344 | 988 | |||||
Issuance of shares of common stock upon vesting of restricted stock units | 18 | 42 | -18 | 42 | ||||
Stock based compensation expense | 77 | 77 | ||||||
Balance at January 31 at Jan. 31, 2014 | 1,468 | 15,980 | -25,173 | -7,725 | ||||
Net loss/income | 6,040 | 6,040 | ||||||
Issuance of Broadwood replacement warrants | 2,294 | 2,294 | ||||||
Stock based compensation expense | 48 | 48 | ||||||
Balance at January 31 at Jan. 31, 2015 | $1,468 | $18,322 | ($19,133) | $657 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Deficit) (Parentheticals) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2013 | |
Balance at January 31, | 14,684,165 | ||
Balance at January 31, | 14,684,165 | 14,684,165 | |
Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | |||
Issuance of common stock upon the vesting of restricted stock units | 187,300 | ||
Common Stock [Member] | Restricted Stock [Member] | |||
Issuance of common stock upon the vesting of restricted stock units | 420,000 | ||
Common Stock [Member] | |||
Balance at January 31, | 14,684,165 | 7,635,039 | |
Balance at January 31, | 14,684,165 | 14,684,165 | 7,635,039 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $6,040,000 | ($2,058,000) |
Adjustments to reconcile net income (loss) from continuing operations to net cash used in operating activities: | ||
Depreciation and amortization | 6,000 | 55,000 |
Loss on sale/retirement of property and equipment | 32,000 | |
Amortization of loan discount | 333,000 | 291,000 |
Stock-based compensation expense | 48,000 | 77,000 |
Provision for doubtful accounts receivable | 6,000 | 16,000 |
Provision for obsolete inventory | 631,000 | |
Change in fair value of derivative liabilities | -226,000 | -570,000 |
Supplier settlement | -1,099,000 | -60,000 |
Changes in operating assets and liabilities | ||
Accounts receivable due from customers | 1,307,000 | |
Accounts receivable due from suppliers | 518,000 | |
Inventory | -165,000 | |
Other assets | 10,000 | -17,000 |
Accounts payable | -2,527,000 | 675,000 |
Accrued liabilities | -164,000 | -289,000 |
Income taxes | 40,000 | |
Net cash provided by operating activities | 2,467,000 | 443,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | -9,000 | |
Change in restricted cash | 77,000 | 28,000 |
Net cash provided by investing activites | 77,000 | 19,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Loan proceeds | 1,500,000 | |
Loan repayment | -1,500,000 | -2,000,000 |
Net proceeds from common stock issued | 1,030,000 | |
Net cash (used in) provided by financing activities | -1,500,000 | 530,000 |
Net increase in cash and cash equivalents | 1,044,000 | 992,000 |
Cash and cash equivalents, beginning of period | 1,096,000 | 104,000 |
Cash and cash equivalents, end of period | 2,140,000 | 1,096,000 |
Noncash investing and financing activities: | ||
Debt discount recorded upon issuance of convertible debt | 624,000 | |
Loss on retired fixed assets at contract manufacturers | 60,000 | |
Issuance of Broadwood replacement warrants | 2,294,000 | |
Supplementary disclosures of cash flow information: | ||
Cash paid for interest | 68,000 | 76,000 |
Cash paid for income taxes, net of refunds | $2,000 | $2,000 |
Note_1_Organization
Note 1 - Organization | 12 Months Ended | |
Jan. 31, 2015 | ||
Disclosure Text Block [Abstract] | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 | Organization |
Comarco, Inc. was incorporated in California in 1960 and its common stock has been publicly traded since 1971, when it was spun-off from Genge Industries, Inc. Comarco Inc.’s wholly-owned subsidiary Comarco Wireless Technologies, Inc. (“CWT”) was incorporated in the state of Delaware in September 1993. Comarco and CWT are collectively referred to as “we,” “us,” “our,” “Comarco,” or the “Company”. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | |
Jan. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies [Text Block] | 2 | Summary of Significant Accounting Policies |
The summary of our significant accounting policies presented below is designed to assist the reader in understanding our consolidated financial statements. Such financial statements and related notes are the representations of our management, who are responsible for their integrity and objectivity. In the opinion of management, these accounting policies conform to accounting principles generally accepted in the United States of America in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. | ||
Principles of Consolidation | ||
Our consolidated financial statements include the accounts of Comarco, Inc. and CWT. All material intercompany balances, transactions, and profits have been eliminated. | ||
Future Operations, Liquidity and Capital Resources | ||
The consolidated financial statements have been prepared assuming that we will continue to operate as a going concern, which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business. Our consolidated financial statements do not reflect any adjustments related to the outcome of this uncertainty. Our future is highly dependent on our ability to successfully resolve our current litigation, capitalize on our portfolio of patents, generate positive cash flows and obtain borrowings or raise capital to meet our liquidity needs. | ||
As previously announced in August 2013, Lenovo Information Products Co., Ltd. (“Lenovo”), our only material customer, notified us of their intention to cease offering our Constellation product, the power adapter we designed and developed for Lenovo, and terminated its relationship with us. We completed shipping product to Lenovo during our third quarter ended November 30, 2013. The loss of Lenovo as a customer has had a material adverse impact on our results of operations. We have reduced and/or eliminated certain operating expenses to minimize future losses and cash burn and will continue our efforts in this regard. | ||
Two of our recent litigation matters have concluded. In the Chicony Power Technology, Co. Ltd., (“Chicony”) matter, effective as of May 15, 2014, Chicony entered into a settlement agreement with us that dismissed all claims between the two parties arising from the litigation. Pursuant to the terms of the settlement agreement, Chicony agreed to pay us $7.6 million. Settlement amounts of $4.0 million and $3.6 million were paid on May 16, 2014 and May 30, 2014, respectively. Of the $7.6 million, we received $6.5 million, net of $1.1 million in attorneys’ fees and other costs. In connection with the settlement, certain contract manufacturer costs payable to Chicony totaling $1.1 million were discharged and reflected as a reduction of cost of revenues. In our litigation with ACCO Brands USA LLC and its Computer Products Group division (collectively “Kensington”), on February 4, 2014, we entered into a confidential settlement and licensing agreement with an effective date of February 1, 2014 that establishes a forward royalty program and dismissed all claims between the two parties arising from this matter. | ||
On March 10, 2014, we filed a lawsuit against Targus Group International, Inc. (“Targus”) for patent infringement, breach of contract, intentional interference with contract, violation of business and professional codes, misrepresentation and fraudulent concealment (the “Federal Action”). Targus sought reexamination the patents at issue. The Federal Action was voluntarily dismissed without prejudice to re-filing the federal claims. A state court action for Breach of Contract, Fraudulent Concealment, Unfair Competition and Accounting was then filed in the Orange County Superior Court on June 5, 2014 (the “State Court Action”). On December 4, 2014, the Court ordered the State Court Action into Arbitration and the arbitration hearing is set for December 2015. | ||
On February 13, 2015, we filed a lawsuit against Best Buy Co., Inc. (“Best Buy”) for patent infringement under the patent laws of the United States. The complaint alleges that certain Best Buy power charging products sold in the United States under the Rocketfish brand infringe the Company’s patented intellectual property. This lawsuit is part of the Company’s ongoing and accelerated efforts to methodically pursue those companies that the Company believes have infringed on the intellectual property estate that the Company has developed over the last 20 years. | ||
On February 3, 2015, we filed a lawsuit against Apple, Inc. (“Apple”) for patent infringement. The complaint alleges that Apple products sold in the United States utilizing the Apple Lightning® power supply adapter system, including most iPad®, iPhone®, and iPod® products, infringe the Company’s patented intellectual property. This lawsuit represents Comarco’s most significant enforcement effort to date, and demonstrates the Company’s ongoing and accelerated efforts to methodically pursue those companies that the Company believes have infringed on the intellectual property estate that the Company has developed over the last 20 years. | ||
We believe that our patent portfolio covering key technical aspects of our products could potentially generate a future revenue stream based upon royalties paid to us by others for the use of some or all of our patents in third party products. We continue to explore opportunities to expand, protect, and monetize our patent portfolio, including through the sale or licensing of our patent portfolio. We may or may not resume our traditional activities of providing innovative charging solutions for battery powered devices. There are no assurances that any of these possible opportunities or activities will occur or be successful. | ||
We had working capital totaling approximately $0.6 million as of January 31, 2015. We are currently generating de minimis revenues and have ceased traditional operations. Our future is highly dependent on our ability to successfully resolve our current litigation, capitalize on our portfolio of patents, generate positive cash flows and obtain borrowings or raise capital to meet our future liquidity needs. | ||
We continue to analyze a range of alternatives to build and/or preserve value for our stakeholders, including, but not limited to, exploring additional investment and incremental financing from current and/or new investors, the engagement of advisors to assist in exploring strategic options for us as well as identifying potential partnerships for the purpose of monetizing some or all of the our patent portfolio and past, present, and future infringement claims. There can be no assurances that we will be successful in implementing any of these alternatives, or if implemented, that any of these alternatives will successfully preserve or increase shareholder value. | ||
Use of Estimates | ||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the years reported. Actual results could materially differ from those estimates. | ||
Certain accounting principles require subjective and complex judgments to be used in the preparation of financial statements. Accordingly, a different financial presentation could result depending on the judgments, estimates, or assumptions that are used. Such estimates and assumptions include, but are not specifically limited to, those required in the assessment of the impairment of long-lived assets, allowance for doubtful accounts, valuation allowances for deferred tax assets, valuation of derivative liabilities and determination of stock-based compensation. | ||
Revenue Recognition | ||
Revenue from product sales was recognized upon shipment of products provided there were no uncertainties regarding customer acceptance, persuasive evidence of an arrangement existed, the sales price was fixed or determinable, and collectability was probable. Generally, our products were shipped FOB named point of shipment, whether it was Lake Forest, CA which was the location of our corporate headquarters, or China, the shipping point for most of our contract manufacturers. | ||
Cash and Cash Equivalents | ||
All highly liquid investments with original maturity dates of three months or less when acquired are classified as cash and cash equivalents. The fair value of cash and cash equivalents approximates the amounts shown in the consolidated financial statements. Cash and cash equivalents are generally maintained in uninsured accounts, typically Eurodollar deposits with daily liquidity, which are subject to investment risk including possible loss of principal invested. | ||
Restricted Cash | ||
Our restricted cash balances are secured by separate bank accounts and represent a $5,000 which serves as collateral for credit card chargebacks associated with our internet website. During fiscal 2015, $77,000 letter of credit that formally served as the security deposit for our corporate office lease was cancelled and we are in the process of renewing this letter of credit. | ||
Accounts Receivable due from Suppliers | ||
Oftentimes we were able to source components locally that we later sold to our contract manufacturers, who built the finished goods, and other suppliers. This was especially the case when new products were initially introduced into production. Sales to our contract manufacturers (or “CMs”) and other suppliers were excluded from revenue and were recorded as a reduction to cost of revenue. During fiscal 2013, our relationship with Power System Technologies, Ltd. (formerly Flextronics Electronics) the CM who builds the product we sell to Lenovo transitioned from a relationship where we directly sourced just a few components in the bill of material to a process where we directly sourced all of the component parts in the bill of material. As of January 31, 2015, the entire accounts receivable due from suppliers balance was from Zheng Ge Electrical Co., Ltd. (“Zheng Ge”), a tip supplier for the Bronx product, which was subject to a recall. As of January 31, 2015, we did not provide an allowance for doubtful accounts against the Zheng Ge receivable as there is a larger offsetting liability to Zheng Ge. | ||
Property and Equipment | ||
Property and equipment are stated at cost less accumulated depreciation and amortization. Additions, improvements, and major renewals are capitalized; maintenance, repairs, and minor renewals are expensed as incurred. Depreciation and amortization is calculated on a straight-line basis over the expected useful lives of the property and equipment. The expected useful lives of office furnishings and fixtures are five to seven years, and of equipment and purchased software are two to five years. The expected useful life of tooling equipment, molds used for pre-production and mass production of our power adapters, is 18 months. The expected useful life of leasehold improvements, which is included in office furnishings and fixtures, is the lesser of the term of the lease or five years. | ||
We evaluate property and equipment for impairment when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. Factors considered important which could trigger an impairment review include, but are not limited to, significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our overall business, and significant negative industry or economic trends. If such assets are identified to be impaired, the impairment to be recognized is the amount by which the carrying value of the asset exceeds the fair value of the asset. We did not experience any changes in our business or circumstances to require an impairment analysis nor did we recognize any impairment charges during the fiscal years ended January 31, 2015 and 2014. | ||
Assets to be disposed of are separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. | ||
Research and Development Costs | ||
Research and development costs are charged to expense as incurred and are reported as engineering and support costs. During fiscal years 2015 and 2014, we incurred $0 and approximately $0.4 million in research and development expense, respectively. | ||
Income Taxes | ||
As part of the process of preparing our consolidated financial statements, we are required to estimate our provision for income taxes in each of the tax jurisdictions in which we conducts business. This process involves estimating our actual current tax expense in conjunction with the evaluation and measurement of temporary differences resulting from differing treatment of certain items for tax and accounting purposes. These temporary timing differences result in the establishment of deferred tax assets and liabilities, which are recorded on a net basis and included in our consolidated balance sheets. On a periodic basis, we assess the probability that our net deferred tax assets, if any, will be recovered. If after evaluating all of the positive and negative evidence, we conclude that it is more likely than not that we will not recover some portion or all of the net deferred tax assets, a valuation allowance is provided with a corresponding charge to tax expense to reserve the portion of the deferred tax assets which are estimated to be more likely than not to be realized. | ||
Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any required valuation allowance. We continue to maintain a full valuation allowance on the entire deferred tax asset balance. This valuation allowance was established based on management’s overall assessment of risks and uncertainties related to our future ability to realize, and hence, utilize certain deferred tax assets, primarily consisting of net operating loss carry forwards and temporary differences. Due to the history of operating losses, the adjusted net deferred tax assets remain fully reserved as of January 31, 2015. | ||
We apply the uncertain tax provisions of the Income Taxes Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification”), which interpretation clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The topic also provides guidance on de-recognition, classification, interest, and penalties, accounting in interim periods, disclosure, and transition. | ||
During fiscal 2015, we recorded a net income of $6.1 million and recorded income tax expense of $42,000, which represents the alternative minimum tax due in the state of California. The net deferred tax asset of $16.1 million at January 31, 2015 continues to be fully reserved. | ||
During fiscal 2014, we recorded a net loss of $2.1 million and recorded income tax expense of $1,600, which represents the minimum tax due in the state of California. The net deferred tax asset of $16.7 million at January 31, 2014, $1.1 million of which relates to net operating losses created in fiscal 2014, continues to be fully reserved. | ||
Advertising | ||
Advertising costs are expensed as incurred. Advertising incurred during fiscal 2015 and 2014 totaled $0 and approximately $2,000, respectively. | ||
Warranty Costs | ||
We provide limited warranties for products for a period generally not to exceed 24 months. We accrue for the estimated cost of warranties at the time revenue is recognized. The accrual is consistent with our actual claims experience. Should actual warranty claim rates differ from our estimates, revisions to the liability would be required. | ||
Derivative Liabilities | ||
A derivative is an instrument whose value is “derived” from an underlying instrument or index such as a future, forward, swap, option contract, or other financial instrument with similar characteristics, including certain derivative instruments embedded in other contracts and for hedging activities. As a matter of policy, the Company does not invest in separable financial derivatives or engage in hedging transactions. However, the Company entered into certain financing transactions in fiscal 2013 that involved financial equity instruments containing certain features that have resulted in the instruments being deemed derivatives. The Company may engage in other similar complex financing transactions in the future, but not with the intention to enter into derivative instruments. Derivatives are measured at fair value using the Monte Carlo simulation pricing model and marked to market through earnings. However, such new and/or complex instruments may have immature or limited markets. As a result, the pricing models used for valuation of derivatives often incorporate significant estimates and assumptions. Changes in these subjective assumptions can materially affect the estimate of the fair value of derivative liabilities and, consequently, the related amount recognized as loss due to change in fair value of derivative liabilities on the consolidated statement of operations. Furthermore, depending on the terms of a derivative, the valuation of derivatives may be removed from the financial statements upon exercise or conversion of the underlying instrument into some other security. | ||
We evaluate free-standing derivative instruments to properly classify such instruments within stockholders’ equity or as liabilities in our financial statements. Our policy is to settle instruments indexed to our common shares on a first-in-first-out basis. | ||
The classification of a derivative instrument is reassessed at each balance sheet date. If the classification changes as a result of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified. | ||
During the second quarter of fiscal 2013, we adopted the guidance, as codified in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 815-40, Derivatives and Hedging, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock,that requires us to apply a two-step model in determining whether a financial instrument or an embedded feature is indexed to our own stock and thus enables it to qualify for equity classification. The warrants issued to Broadwood Partners, L.P. (“Broadwood”) contained provisions that adjusted the exercise price in the event of certain dilutive issuance of our securities (see Note 7). Accordingly, the Company considered the warrants to be subject to price protection and classified them as derivative liabilities at the date of issuance with a fair value of $1.4 million and a corresponding discount to the underlying loan payable (see Note 7). On August 13, 2014, we entered into an Amendment and Release Agreement that canceled and replaced the Broadwood warrants. Accordingly, the derivative liability associated with the Broadwood warrants was reversed on the cancellation date and the replacement warrants, which qualified for classification as equity, were added to additional paid in capital. | ||
Additionally, during the first quarter of fiscal 2014, we entered into a Loan Agreement with Elkhorn Partners Limited Partnership (“Elkhorn”) which contained convertible provisions that allow Elkhorn to convert the loan into common stock. The conversion price could have been adjusted in the event of certain dilutive issuance of our securities. Accordingly, the Company considered the convertible debt to be subject to price protection and created a discount to the underlying loan payable and classified that fair value as derivative liabilities at the date of issuance with a fair value of $0.6 million (see Note 7). On June 3, 2014, the Company repaid the Elkhorn Loan in full and as a result, the discount to the loan payable and related derivative liability were extinguished and charged to earnings for the year ended January 31, 2015. | ||
Concentrations of Credit Risk | ||
Our cash and cash equivalents are principally on deposit in a non-insured short-term asset management account at a large financial institution. Accounts receivable potentially subject us to concentrations of credit risk. We generally do not require collateral for accounts receivable. When required, we maintain allowances for credit losses, and to date such losses have been within management’s expectations. Once a specific account receivable has been reserved for as potentially uncollectible, our policy is to continue to pursue collections for a period of up to one year prior to recording a receivable write-off. | ||
Net Income (Loss) Per Common Share | ||
Basic net (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period excluding the dilutive effect of potential common stock, which for us consists solely of stock awards. Diluted earnings per share reflects the dilution that would result from the exercise of all dilutive stock awards outstanding during the period. The effect of such potential common stock is computed using the treasury stock method (see Note 11). | ||
Stock-Based Compensation | ||
We grant stock awards, restricted stock and restricted stock units for a fixed number of shares to employees, consultants, and directors with an exercise or grant price equal to the fair value of the shares at the date of grant. | ||
We account for stock-based compensation using the modified prospective method, which requires measurement of compensation cost for all stock awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. | ||
Fair Value of Financial Instruments | ||
Our financial instruments include cash and cash equivalents, accounts receivable due suppliers, accounts payable, accrued liabilities, a short-term loan and derivative liabilities. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. | ||
Legal expense classification | ||
Our legal expenses are classified in either selling, general, and administrative expenses or engineering and support expenses depending on the nature of the legal expense. All legal expenses incurred related to our intellectual property, including associated litigation expense and maintenance of our patent portfolio, are included in engineering and support expenses in our consolidated statement of operations. All other legal expenses, including all other litigation expense and public company legal expense are included in selling, general, and administrative expenses in our consolidated statement of operations. The legal expense included in selling, general and administrative expenses during fiscal 2015 and fiscal 2014 was $0.4 million and $0.7 million, respectively. | ||
Subsequent Events | ||
Management has evaluated events subsequent to January 31, 2015 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements. |
Note_3_Customer_and_Supplier_C
Note 3 - Customer and Supplier Concentrations | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Customer And Supplier Concentrations [Abstract] | |||||||||||||||||
Customer And Supplier Concentrations [Text Block] | 3 | Customer and Supplier Concentrations | |||||||||||||||
Substantially all of the Company’s revenue was derived from a single customer, Lenovo, in fiscal 2014. As discussed in Note 2 above, in August 2013, Lenovo notified us of their intention to cease offering Comarco’s product to its customers. We shipped approximately 20,000 of our Constellation units to Lenovo and 11,000 field replacement units to Lenovo affiliates during our third quarter of fiscal 2014, and we have no further orders from Lenovo or their affiliates. The loss of Lenovo has had a material adverse impact on our revenues and results of operations. | |||||||||||||||||
The customers providing 10 percent or more of our revenue for either of the years ended January 31, 2015 and 2014 are listed below (in thousands, except percentages). | |||||||||||||||||
Years Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Total revenue | $ | - | 100 | % | $ | 4,429 | 100 | % | |||||||||
Customer concentration: | |||||||||||||||||
Lenovo Information Products Co., Ltd. | $ | - | 0 | % | $ | 4,319 | 98 | % | |||||||||
$ | - | 0 | % | $ | 4,319 | 98 | % | ||||||||||
Our revenues by geographic location for the years ended January 31, 2015 and 2014 are listed below (in thousands, except percentages). | |||||||||||||||||
Years Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Revenue: | |||||||||||||||||
Asia-Pacific | $ | - | 0 | % | $ | 4,319 | 98 | % | |||||||||
North America | - | 0 | % | 73 | 2 | % | |||||||||||
Europe | - | 0 | % | 37 | 1 | % | |||||||||||
$ | - | 0 | % | $ | 4,429 | 100 | % | ||||||||||
The suppliers comprising 10 percent or more of our gross accounts receivable due from suppliers at either January 31, 2015 or 2014 are listed below (in thousands, except percentages). | |||||||||||||||||
Years Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Total gross accounts receivable due from suppliers | $ | 122 | 100 | % | $ | 128 | 100 | % | |||||||||
Supplier concentration: | |||||||||||||||||
Zheng Ge Electrical Co., Ltd. | $ | 122 | 100 | % | $ | 122 | 95 | % | |||||||||
$ | 122 | 100 | % | $ | 122 | 95 | % | ||||||||||
Zheng Ge Electrical Co., Ltd. (“Zheng Ge”) was a tip supplier for the Bronx product, which was subject to a recall. We previously sourced some of the component parts that Zheng Ge used in the manufacture of the tips. We ceased paying Zheng Ge during the course of the product recall while we investigated the manufacturing defect which ultimately caused the recall and, likewise, Zheng Ge ceased paying us. | |||||||||||||||||
The suppliers and other vendors comprising 10 percent or more of our gross accounts payable at either January 31, 2015 or 2014 are listed below (in thousands, except percentages). | |||||||||||||||||
Years Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Total gross accounts payable | $ | 737 | 100 | % | $ | 4,363 | 100 | % | |||||||||
Supplier concentration: | |||||||||||||||||
Chicony Power Technology, Co. Ltd. | $ | - | 0 | % | $ | 1,100 | 25 | % | |||||||||
Pillsbury Winthrop Shaw Pittman, LLP | 432 | 59 | % | 1,953 | 45 | % | |||||||||||
$ | 432 | 59 | % | $ | 3,053 | 70 | % | ||||||||||
Chicony Power Technology, Co. Ltd., (“Chicony”) was the manufacturer of the Bronx product, which was subject to a recall. We had been in litigation with Chicony (see Note 13). Effective May 15, 2014, Chicony entered into a settlement agreement with us that dismissed all claims between the two parties arising from the litigation. Pursuant to the terms of the settlement agreement, Chicony agreed to pay us $7.6 million in cash. $4.0 million of the settlement amount was paid on May 16, 2014, with the balance of $3.6 million paid on May 30, 2014. Of the $7.6 million, we received $6.5 million, net of $1.1 million in attorneys’ fees and other costs. As a result of the settlement agreement, $1.1 million of contract manufacturer obligations to Chicony have been legally dismissed and reversed as of July 31, 2014. The dismissed obligations are reflected in Cost of Revenues for the year ended January 31, 2015. | |||||||||||||||||
Pillsbury Winthrop Shaw Pittman, LLP (“Pillsbury”) was our former legal counsel for the Kensington litigation as well as other patent and intellectual property matters (see Note 13). On May 28, 2014, we entered into an agreement with Pillsbury in which we paid Pillsbury a lump sum of $1.5 million and the remaining balance of $0.4 million (“the Balance”) was modified and is to be paid, if at all, in the event Comarco obtains any monetary recovery, whether through settlement, judgment or otherwise, from or as a result of the Targus Lawsuit and/or any of the additional lawsuits. The amount payable shall be equal to the Balance plus 20% per annum, compounded annually from the Effective Date of May 28, 2014. In connection with this partial repayment, no gain was recognized. |
Note_4_Property_and_Equipment
Note 4 - Property and Equipment | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 4 | Property and Equipment | |||||||
Property and equipment consist of the following (in thousands): | |||||||||
January 31, | January 31, | ||||||||
2015 | 2014 | ||||||||
Office furnishing and fixtures | $ | 605 | $ | 605 | |||||
Equipment | 973 | 973 | |||||||
Purchased software | 66 | 66 | |||||||
1,644 | 1,644 | ||||||||
Less: Accumulated depreciation and amortization | (1,636 | ) | (1,630 | ) | |||||
$ | 8 | $ | 14 | ||||||
We held equipment, primarily tooling and fixtures at various contract manufacturer locations in China related to our customer, Lenovo. As of January 31, 2014, we retired all fixed assets at these contract manufacturer locations. | |||||||||
Depreciation and amortization expense for fiscal 2015 and fiscal 2014 totaled $6,000 and $55,000, respectively. |
Note_5_Accrued_Liabilities
Note 5 - Accrued Liabilities | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 5 | Accrued Liabilities | |||||||
Accrued liabilities consist of the following (in thousands): | |||||||||
January 31, | January 31, | ||||||||
2015 | 2014 | ||||||||
Uninvoiced materials and services received | $ | 331 | $ | 458 | |||||
Accrued legal and professional fees | 138 | 161 | |||||||
Accrued payroll and related expenses | 38 | 58 | |||||||
Accrued warranty | 4 | 20 | |||||||
Other | 337 | 315 | |||||||
$ | 848 | $ | 1,012 | ||||||
As of January 31, 2015, approximately $0.3 million or 98 percent of total uninvoiced materials and services of $0.3 million, respectively, included in accrued liabilities, were due to Zheng Ge Electrical Co. Ltd. (“Zheng Ge”). |
Note_6_Loan_Agreement
Note 6 - Loan Agreement | 12 Months Ended | |
Jan. 31, 2015 | ||
Debt Disclosure [Abstract] | ||
Debt Disclosure [Text Block] | 6 | Loan Agreement |
Secured Loan Agreement with Elkhorn Partners. | ||
On February 11, 2013, the Company and Elkhorn Partners Limited Partnership (“Elkhorn”), entered into a Secured Loan Agreement (the “Elkhorn Loan Agreement”) and a Stock Purchase Agreement (the “Elkhorn SPA”), and certain related agreements, which are described below (collectively, the “Elkhorn Agreements”). Pursuant to those Elkhorn Agreements, Elkhorn made a $1.5 million senior secured loan to the Company with a maturity date of November 30, 2014 (the “Elkhorn Loan”) and purchased a total of 6,250,000 shares of the Company’s common stock at a cash purchase price of $0.16 per share, generating an additional $1.0 million of cash for the Company. The average of the closing prices of the Company’s common stock in the over-the-counter market for the five trading days immediately preceding February 11, 2013 was $0.14 per share and, for the 29 trading days that began on January 2, 2013 and ended on February 8, 2013, was $0.158 per share. On February 11, 2013, the Company used approximately $2.1 million of the proceeds of $2.5 million from the Elkhorn Loan and the sale of the shares to Elkhorn to pay the entire principal amount of and all accrued interest on the Broadwood Loan (described below). On June 3, 2014, the Company repaid the Elkhorn Loan Agreement in full. | ||
The Elkhorn Loan, which was evidenced by a promissory note issued by the Company to Elkhorn, bore interest at 7% for the first 12 months of the Elkhorn Loan, increasing to 8.5% thereafter and continuing until the Elkhorn Loan was paid in full. | ||
The Elkhorn Loan Agreement provided that if and to the extent the Company did not pay the Elkhorn Loan in full by its Maturity Date, then Elkhorn would have had the right, at its option (but not the obligation), to convert the then unpaid balance of the Elkhorn Loan, in whole or in part, into shares of Company common stock at a conversion price of $0.25 per share. That conversion price was subject to possible adjustment on (i) certain sales of Company common stock at a price lower than $0.25 per share, (ii) stock splits of, stock dividends on and any reclassification of the Company’s outstanding shares, and (iii) certain mergers or reorganizations of the Company, as provided in Article III of the Elkhorn Loan Agreement. This conversion feature created a derivative liability that is described in Note 7. | ||
Elkhorn Stock Purchase Agreement | ||
Concurrently with the Company’s entry into the Elkhorn Loan Agreement, the Company and Elkhorn entered into the Elkhorn SPA Agreement. Pursuant to that Elkhorn SPA Agreement, the Company sold 6,250,000 shares of its common stock to Elkhorn at a price of $0.16 per share, resulting in an aggregate purchase price of $1.0 million. | ||
Broadwood Term Loan Agreement, Stock Purchase Agreement and Stock Purchase Warrants | ||
The Company entered into a Senior Secured Six Month Term Loan Agreement dated July 27, 2012 (the “Broadwood Loan Agreement”) with Broadwood, a partnership managed by Broadwood Capital, Inc., the general partner of Broadwood. Broadwood is a significant shareholder of the Company. | ||
Pursuant to that Broadwood Loan Agreement, Broadwood made a $2,000,000 senior secured six month loan (the “Broadwood Loan”) to the Company and to CWT, as co-borrower. The Broadwood Loan bore interest at 5% per annum, ranked senior in right of payment to all other indebtedness of the Company and was due and payable in full on January 28, 2013. | ||
Concurrently with the execution of the Broadwood Loan Agreement, the Company and Broadwood entered into a Stock Purchase Agreement (the “Broadwood SPA”). That agreement provided for the purchase by Broadwood of up to 3,000,000 shares of the Company’s common stock, at a price of $1.00 per share, subject to the satisfaction of certain conditions set forth in the Broadwood SPA. As consideration for the Broadwood Loan and Broadwood’s entry into the Broadwood SPA, the Company concurrently issued stock purchase warrants to Broadwood (the “Broadwood Warrant”) entitling it to purchase up to a total of 1,704,546 shares of the Company’s common stock, at a price of $1.00 per share, at any time through July 2020. | ||
Also, the Company also entered into a Warrant Commitment Letter, which provided that if the Company raised less than $3.0 million from sales of equity securities to other investors during the six month term of the Broadwood Loan, then Broadwood would receive an additional warrant (the “Broadwood Additional Warrant”) entitling it to purchase, also at a price of $1.00 per share, an amount of shares of the Company’s common stock to be determined based on a formula in the Warrant Commitment Letter, with such amount not to exceed 1,000,000 additional shares. The exercise price of the Broadwood Warrant and Broadwood Additional Warrant was subject to adjustment if the Company completed subsequent financings at a price less than the exercise price of the Broadwood warrants. | ||
In early 2013, a dispute arose between the Company and Broadwood concerning Broadwood’s obligations under the Broadwood SPA and the Company’s obligations under the Broadwood Warrant and the Warrant Commitment Letter. On August 13, 2014, the Company and Broadwood entered into an Amendment and Release Agreement that resolved these disputes. Pursuant to the Amendment and Release Agreement, the Company issued Broadwood a new stock purchase warrant (“New Warrant”) entitling it to purchase up to a total of 2,350,000 shares of the Company’s common stock, at a price of $0.16 per share, in exchange for cancellation of the Broadwood Warrant and any obligation of the Company to issue the Broadwood Additional Warrant. The New Warrant expires on July 27, 2020. In addition, the Company and Broadwood released each other from any and all claims concerning the Broadwood Loan Agreement, Broadwood SPA and related matters. The derivative liability associated with the Broadwood Warrant was reversed on the cancellation date. The New Warrant qualified for classification as equity and was added to additional paid-in capital. |
Note_7_Fair_Value_Measurements
Note 7 - Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | 7 | Fair Value Measurements | |||||||||||||||
We follow FASB ASC 820, "Fair Value Measurements and Disclosures" (“ASC 820”), in connection with assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition. The guidance applies to our derivative liabilities. We had no assets or liabilities measured at fair value on a non-recurring basis for any period reported. | |||||||||||||||||
ASC 820 requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories. We measure the fair value of applicable financial and non-financial assets based on the following fair value hierarchy: | |||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||||||||
The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. | |||||||||||||||||
The fair value of our recorded derivative liabilities is determined based on unobservable inputs that are not corroborated by market data, which is a Level 3 classification. We record derivative liabilities on our balance sheet at fair value with changes in fair value recorded in our consolidated statements of operations. | |||||||||||||||||
The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the fiscal year ended January 31, 2015 (in thousands): | |||||||||||||||||
Change in estimated | |||||||||||||||||
Change in | fair value recognized | ||||||||||||||||
February 1, | Derivative | in results of | January 31, | ||||||||||||||
Description | 2014 | Liabilities | operations | 2015 | |||||||||||||
Broadwood warrants | $ | 2,426 | $ | (2,294 | ) | $ | (132 | ) | $ | - | |||||||
Elkhorn conversion features | 94 | - | (94 | ) | - | ||||||||||||
$ | 2,520 | $ | (2,294 | ) | $ | (226 | ) | $ | - | ||||||||
On August 13, 2014, the Company entered into an Amendment and Release Agreement that canceled of the Broadwood Warrants (see Note 6 above). The derivative liability associated with the Broadwood Warrant was reversed on the cancellation date. The replacement warrants qualified for classification as equity and added to additional paid – in capital. | |||||||||||||||||
On June 3, 2014, the Company repaid the Elkhorn Loan in full and as a result, the discount to the loan payable and related derivative liability were extinguished and charged to earnings. |
Note_8_Income_Taxes
Note 8 - Income Taxes | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Tax Disclosure [Text Block] | 8 | Income Taxes | |||||||||||||||
Income tax expense on a consolidated basis consists of the following amounts (in thousands): | |||||||||||||||||
Years Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal: | |||||||||||||||||
Current | $ | — | $ | — | |||||||||||||
Deferred | — | — | |||||||||||||||
State: | |||||||||||||||||
Current | 42 | 2 | |||||||||||||||
Deferred | — | — | |||||||||||||||
Foreign: | |||||||||||||||||
Current | — | — | |||||||||||||||
$ | 42 | $ | 2 | ||||||||||||||
The effective income tax rate on loss from continuing operations differs from the United States statutory income tax rates for the reasons set forth in the table below (in thousands, except percentages). | |||||||||||||||||
Years Ended January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Amount | Percent Pretax Income | Amount | Percent Pretax Income | ||||||||||||||
Income/(Loss) from operations before income taxes | $ | 6,082 | 100 | % | $ | (2,056 | ) | 100 | % | ||||||||
Computed “expected” income tax benefit on loss from operations before income taxes | $ | 2,068 | 34 | % | $ | (699 | ) | (34 | )% | ||||||||
State tax, net of federal benefit | 387 | 6 | % | 2 | 0 | % | |||||||||||
Tax credits | — | 0 | % | — | 0 | % | |||||||||||
Change in valuation allowance | (569 | ) | (9 | )% | (1,074 | ) | (52 | )% | |||||||||
Permanent differences | 118 | 2 | % | (93 | ) | (5 | )% | ||||||||||
Return to provision adjustments | — | 0 | % | — | 0 | % | |||||||||||
Change in state tax rate | (1,978 | ) | (33 | )% | 1,866 | 91 | % | ||||||||||
Other, net | 16 | 0 | % | — | 0 | ||||||||||||
Income tax expense | $ | 42 | 1 | % | $ | 2 | — | ||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at January 31, 2014 and 2013 are as follows (in thousands): | |||||||||||||||||
January 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Property and equipment, principally due to differing depreciation methods | 161 | 134 | |||||||||||||||
Accruals and reserves | 206 | 124 | |||||||||||||||
Net research and manufacturer investment credit carryforwards | 2,325 | 2,308 | |||||||||||||||
Net operating losses | 13,151 | 13,904 | |||||||||||||||
AMT credit carryforwards | 136 | 110 | |||||||||||||||
Stock based compensation | 127 | 93 | |||||||||||||||
Other | — | 2 | |||||||||||||||
Total gross deferred tax assets | 16,106 | 16,675 | |||||||||||||||
Less: valuation allowance | (16,106 | ) | (16,675 | ) | |||||||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||||||
We have federal and state research and experimentation credit carryforwards of $1.7 million and $2.1 million, respectively, which expire through 2032. We have a net operating loss carryforward of $34.0 million for federal and $27.0 million for state, which expire in increments through 2033. | |||||||||||||||||
In assessing the probability that deferred tax assets will benefit future periods, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. There was a full valuation allowance for deferred tax assets as of January 31, 2014, a decrease of $0.6 million during the fiscal year, based on management’s overall assessment of risks and uncertainties related to our future ability to realize, and hence utilize, the deferred tax assets. | |||||||||||||||||
A reconciliation of the beginning balance of our unrecognized tax benefits and the ending amount of unrecognized tax benefit is as follows (in thousands): | |||||||||||||||||
Unrecognized Tax Benefits | |||||||||||||||||
Balance at February 1, 2014 | $ | 777 | |||||||||||||||
Additions based on tax positions related to the current year | — | ||||||||||||||||
Reductions due to lapses of statute of limitations | — | ||||||||||||||||
Tax positions of prior years | — | ||||||||||||||||
Balance at January 31, 2015 | $ | 777 | |||||||||||||||
The unrecognized tax benefits recorded above, if reversed, would not impact our effective tax rate since we maintain a full valuation allowance against our deferred tax asset. We recognize interest and penalties associated with unrecognized tax benefits in the income tax expense line item of the consolidated statement of operations. | |||||||||||||||||
We and our subsidiary, CWT, file income tax returns in the U.S. federal jurisdiction and in certain state jurisdictions. With few exceptions, we are no longer subject to U.S. federal examinations or state income tax examinations by tax authorities for years before 2010 in those jurisdictions where returns have been filed. |
Note_9_Stock_Compensation
Note 9 - Stock Compensation | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9 | Stock Compensation | ||||||||||||||||||||||
We have stock-based compensation plans under which outside directors, consultants, and employees are eligible to receive stock options and other equity-based awards. The stock option plans and a director stock option plan provide that officers, key employees, directors and consultants may be granted options to purchase up to 2,675,000 shares of our common stock at not less than 100 percent of the fair market value at the date of grant, unless the grantee is a 10 percent shareholder, in which case the price must not be less than 110 percent of the fair market value. | ||||||||||||||||||||||||
The Company’s former employee stock option plan (the “Prior Employee Plan”) expired during May 2005. As a result, no new options could be granted under the plan thereafter. This plan provided for the issuance of up to 825,000 shares of common stock. As of January 31, 2013, the Prior Employee Plan had 25,000 stock options outstanding. During December 2005, the Board of Directors approved and adopted the Company’s 2005 Equity Incentive Plan (the “2005 Plan”) covering 450,000 shares of common stock. The 2005 Plan was approved by the Company’s shareholders at its annual shareholders’ meeting in June 2006, and subsequently amended at its annual shareholders’ meeting in June 2008 to increase the number of shares issuable under the plan from 450,000 to 1,100,000 shares. In July 2011, the Company’s shareholders approved the 2011 Equity Incentive Plan (the “2011” Plan) covering 750,000 shares of common stock, as well as the shares that remained available for issuance under the 2005 Plan plus shares that were the subject of outstanding awards under the 2005 Plan, which again become available for grant under that plan. Thus, the 2011 Plan combines the 2011 Plan and the 2005 Plan. Under the 2011 Plan, we may grant stock options, stock appreciation rights, restricted stock, restricted stock units, and performance based awards to employees, consultants and directors. In addition, under the 2011 Plan, awards vest or become exercisable in installments determined by the compensation committee of our Board of Directors. The options granted under Prior Employee Plan expire as determined by the committee, but no later than ten years and one week after the date of grant (five years for 10 percent shareholders). The options granted under the 2011 and 2005 Plan expire as determined by the committee, but no later than ten years after the date of grant (five years for 10 percent shareholders). | ||||||||||||||||||||||||
During fiscal 2015, no restricted stock shares or stock options were granted. During fiscal 2014, 420,000 restricted stock shares were granted and no stock options were granted. The fair value of the restricted stock shares granted during fiscal 2014 was estimated using the stock price on the date of the grant of $0.18 and a forfeiture rate of 8.2 percent. During fiscal 2013, 300,000 restricted stock units were granted and 465,000 stock options were granted. The fair value of the restricted stock units granted during fiscal 2012 was estimated using the stock price on the date of the grant of $0.16 and a forfeiture rate of 10.63 percent. | ||||||||||||||||||||||||
The fair value of stock options is determined using a Lattice Binomial model for options with performance-based vesting tied to our stock price and the Black-Scholes valuation model for options with ratable term vesting. Both the Lattice Binomial and Black-Scholes valuation model require the input of subjective assumptions including estimating the length of time employees will retain their vested stock options before exercising them (the “expected term”), the estimated volatility of the common stock price over the expected term, and the number of options that will ultimately not complete their vesting requirements (“forfeitures”). Changes in these subjective assumptions can materially affect the estimate of fair value of stock-based compensation and, consequently, the related amount recognized as an expense on the consolidated statements of operations. We review our valuation assumptions at each grant date and, as a result, are likely to change our valuation assumptions used to value stock-based awards granted in future periods. The values derived from using either the Lattice Binomial or Black-Scholes model are recognized as expense over the vesting period, net of estimated forfeitures. The estimation of stock awards that will ultimately vest requires significant judgment. Actual results, and future changes in estimates, may materially differ from our current estimates. | ||||||||||||||||||||||||
The stock-based compensation expense recognized under ASC Topic 718 is summarized in the table below (in thousands except per share amounts): | ||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||
January 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Stock-based compensation expense | $ | 48 | $ | 77 | ||||||||||||||||||||
Impact on basic and diluted earnings per share | $ | (0.00 | ) | $ | (0.01 | ) | ||||||||||||||||||
The total compensation cost related to non-vested awards not yet recognized is approximately $7,800, which will be expensed over a weighted average remaining life of 2 months. | ||||||||||||||||||||||||
Transactions and other information related to restricted stock granted under these plans for the year ended January 31, 2015 and 2014 are summarized below: | ||||||||||||||||||||||||
Outstanding Restricted Stock | ||||||||||||||||||||||||
Weighted-Ave. | ||||||||||||||||||||||||
Number of | Exercise | |||||||||||||||||||||||
Shares | Price | |||||||||||||||||||||||
Balance, January 31, 2013 | - | $ | - | |||||||||||||||||||||
Restricted stock granted | 420,000 | 0.18 | ||||||||||||||||||||||
Restricted stock forfeited | - | - | ||||||||||||||||||||||
Balance, January 31, 2014 | 420,000 | $ | 0.18 | |||||||||||||||||||||
Restricted stock granted | - | - | ||||||||||||||||||||||
Restricted stock forfeited | (70,000 | ) | 0.18 | |||||||||||||||||||||
Balance, January 31, 2015 | 350,000 | $ | 0.18 | |||||||||||||||||||||
At January 31, 2015 and 2014, the stock awards outstanding had no intrinsic value based upon closing market price of $0.14 and $0.17 per share, respectively. | ||||||||||||||||||||||||
The following table summarizes information about stock awards outstanding at January 31, 2015: | ||||||||||||||||||||||||
Awards Outstanding | Options Exercisable | |||||||||||||||||||||||
Weighted-Ave. | ||||||||||||||||||||||||
Range of | Number | Remaining | Weighted-Ave. | Number | Weighted-Ave. | |||||||||||||||||||
Exercise/Grant Prices | Outstanding | Contractual Life | Exercise/Grant Price | Exercisable | Exercise Price | |||||||||||||||||||
$ | 0.4 | 465,000 | 7.7 | $ | 0.4 | 465,000 | $ | 0.4 | ||||||||||||||||
$ | 1.09 | 100,000 | 3.78 | 1.09 | 60,000 | 1.09 | ||||||||||||||||||
$ | 4.9 | 15,000 | 3.08 | 4.9 | 15,000 | 4.9 | ||||||||||||||||||
$ | 10.43 | 20,000 | 1.38 | 10.43 | 20,000 | 10.43 | ||||||||||||||||||
600,000 | 0.96 | 560,000 | 0.95 | |||||||||||||||||||||
Transactions and other information related to stock options granted under these plans for the years ended January 31, 2015 and 2014 are summarized below: | ||||||||||||||||||||||||
Outstanding Options | ||||||||||||||||||||||||
Weighted-Ave. | ||||||||||||||||||||||||
Number of | Exercise | |||||||||||||||||||||||
Shares | Price | |||||||||||||||||||||||
Balance, January 31, 2013 | 764,500 | $ | 1.48 | |||||||||||||||||||||
Options granted | - | - | ||||||||||||||||||||||
Options canceled or expired | (126,000 | ) | 2.77 | |||||||||||||||||||||
Options exercise | - | - | ||||||||||||||||||||||
Balance, January 31, 2014 | 638,500 | $ | 1.22 | |||||||||||||||||||||
Options granted | - | - | ||||||||||||||||||||||
Options canceled or expired | (38,500 | ) | 5.32 | |||||||||||||||||||||
Options exercise | - | - | ||||||||||||||||||||||
Balance, January 31, 2015 | 600,000 | $ | 0.96 | |||||||||||||||||||||
Stock Options Exercisable at January 31, 2015 | 560,000 | $ | 0.95 | |||||||||||||||||||||
There were 560,000 stock options exercisable at January 31, 2015 at a weighted-average exercise price of $0.95. Shares available under the plans for future grants at January 31, 2015 were 229,724 of which 194,500 represent shares that previously were expired, terminated or cancelled and have been added back to the plan and are available for future grants. |
Note_10_Net_Income_Loss_Per_Sh
Note 10 - Net Income (Loss) Per Share | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | 10 | Net Income (Loss) Per Share | |||||||
We calculate basic income (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted income (loss) per share reflects the effects of potentially dilutive securities. Because we incurred net losses for the fiscal year ended January 31, 2014, basic and diluted loss per share were the same because the inclusion of 108,000, as of January 31, 2014, potential common shares related to outstanding stock awards in the calculation would have been antidilutive. The summary of the basic and diluted earnings per share computations is as follows (in thousands, except per share data): | |||||||||
Year Ended | |||||||||
2015 | 2014 | ||||||||
Net income (loss) | $ | 6,040 | $ | (2,058 | ) | ||||
Basic net income (loss) per share: | |||||||||
Weighted-average shares outstanding-Basic | 14,684 | 14,397 | |||||||
Basic net income (loss) per share | $ | 0.41 | $ | (0.14 | ) | ||||
Diluted net inome (loss) per share: | |||||||||
Weighted average shares outstanding - basic | 14,684 | 14,397 | |||||||
Effect of potentially dilutive securities | 179 | - | |||||||
Weighted average shares outstanding - diluted | 14,863 | 14,397 | |||||||
Diluted net income (loss) per share | $ | 0.41 | $ | (0.14 | ) | ||||
Note_11_Employee_Benefit_Plans
Note 11 - Employee Benefit Plans | 12 Months Ended | |
Jan. 31, 2015 | ||
Disclosure Text Block Supplement [Abstract] | ||
Compensation and Employee Benefit Plans [Text Block] | 11 | Employee Benefit Plans |
We have a Savings and Retirement Plan (the “Plan”) that provides benefits to eligible employees. Under the Plan, as amended and restated effective February 1, 2012, employees are eligible to participate on the first of the month following 30 days of employment, provided they are at least 18 years of age, by contributing between 1 percent and 20 percent of pre-tax earnings. Company contributions match employee contributions at levels as specified in the Plan document. In addition, we may contribute a portion of our net profits as determined by our Board of Directors. Participants are vested immediately in their voluntary contributions plus actual earnings thereon. Company contributions plus actual earnings thereon generally vest ratably over a four year period. Company contributions, which consist of matching contributions, with respect to the Plan for the years ended January 31, 2015 and 2014 were approximately $0 and $21,000, respectively. | ||
We have obligations to match employee contributions made to the Plan. Generally, our obligation is equal to 100 percent of up to 5 percent of employees’ contribution amounts. If we are unable to meet the requisite matching, the Plan may need to be amended. |
Note_12_Commitments_and_Contin
Note 12 - Commitments and Contingencies | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 12 | Commitments and Contingencies | |||
Rental commitments under non-cancelable operating leases, principally on our office space, were $0.4 million at January 31, 2015, payable as follows (in thousands): | |||||
Operating Leases | |||||
Fiscal Year: | |||||
2016 | $ | 256 | |||
2017 | 152 | ||||
Total minimum lease payments | $ | 408 | |||
Rental expense for the years ended January 31, 2015 and 2014 was approximately $0.3 million. | |||||
Executive Severance Commitments | |||||
We have a severance compensation agreement with our Chief Executive Officer, Thomas Lanni. This agreement requires us to pay Mr. Lanni, in the event of a termination of employment following a change of control of the Company or other circumstances, the amount of his then current annual base salary and the amount of any bonus amount the executive would have achieved for the year in which the termination occurs plus the acceleration of unvested options. We have not recorded any liability in the consolidated financial statements for this agreement. | |||||
Additionally, as a result of the Company’s sale of the 6,250,000 shares of common stock to Elkhorn (see Note 6), Elkhorn’s beneficial ownership of the Company has increased from approximately 9% to approximately 49% of the Company’s outstanding voting stock, making Elkhorn the Company’s largest shareholder and resulting in a change of control of more than 25%, as defined for purposes of the severance compensation agreement. Mr. Lanni has waived his right to receive payments under this agreement as a result of the change in Elkhorn’s beneficial ownership of the Company. | |||||
Executive and Board of Directors Compensation | |||||
On November 2, 2013, the Company approved a deferred compensation plan for its Chief Executive Officer and Board of Directors. As of January 31, 2015 and 2014, no compensation expense has been accrued under this deferred compensation plan as its goal was not achieved. | |||||
Legal Contingencies | |||||
On February 13, 2015, we filed a lawsuit against Best Buy Co., Inc. (“Best Buy”) for patent infringement under the patent laws of the United States. The complaint alleges that certain Best Buy power charging products sold in the United States under the Rocketfish brand infringe the Company’s patented intellectual property. This lawsuit is part of the Company’s ongoing and accelerated efforts to methodically pursue those companies that the Company believes have infringed on the intellectual property estate that the Company has developed over the last 20 years. | |||||
On February 3, 2015, we filed a lawsuit against Apple, Inc. (“Apple”) for patent infringement. The complaint alleges that Apple products sold in the United States utilizing the Apple Lightning® power supply adapter system, including most iPad®, iPhone®, and iPod® products, infringe the Company’s patented intellectual property. This lawsuit represents Comarco’s most significant enforcement effort to date, and demonstrates the Company’s ongoing and accelerated efforts to methodically pursue those companies that the Company believes have infringed on the intellectual property estate that the Company has developed over the last 20 years. | |||||
On March 10, 2014, we filed a lawsuit against Targus Group International, Inc. for patent infringement, breach of contract, intentional interference with contract, violation of business and professional codes, misrepresentation and fraudulent concealment. Targus sought reexamination the patents at issue. The Federal Action was voluntarily dismissed without prejudice to re-filing the federal claims. A state court action for Breach of Contract, Fraudulent Concealment, Unfair Competition and Accounting was then filed in the Orange County Superior Court on June 5, 2014. On December 4, 2014, the Court ordered the State Court Action into Arbitration and the arbitration hearing is set for December 2015. We are seeking damages of at least $17 million. Although we intend to vigorously pursue our rights in this case, the outcome of this matter is not determinable as of the date of this report. | |||||
In addition to the pending matters described above, we are, from time to time, involved in various legal proceedings incidental to the conduct of our business. We are unable to predict the ultimate outcome of these matters. |
Note_13_Legal
Note 13 - Legal | 12 Months Ended | |
Jan. 31, 2015 | ||
Disclosure Text Block Supplement [Abstract] | ||
Legal Matters and Contingencies [Text Block] | 13 | Legal |
On April 26, 2011, Chicony, the contract manufacturer of the Bronx product that was the subject of a product recall, filed a complaint against us for breach of contract, seeking payment of $1.2 million for the alleged non-payment by us of amounts alleged by Chicony to be due it for products purchased from it by the Company. We denied liability and filed a cross-complaint on May 13, 2011 seeking the recovery of damages of $4.9 million caused by Chicony's failure to adhere to our technical specifications when manufacturing the Bronx product, which we believe resulted in the recall of the product. On April 16, 2013, the court approved our first-amended cross-complaint, which added intentional interference to our complaint and increased the damages we were seeking to at least $15.0 million. The trial date was held in October, 2013. In an effort to resolve this litigation before the previous trial date of April, 2013, we sent Chicony a settlement offer, which has since lapsed. On February 4, 2014, a jury returned a verdict in our favor and awarded us damages of approximately $10.8 million, offset by previously accrued liabilities of $1.1 million for a net award of approximately $9.7 million. Effective as of May 15, 2014, Chicony entered into a settlement agreement with us that dismissed all claims between the parties arising from the litigation referenced above. Pursuant to the terms of the settlement agreement, Chicony agreed to pay us $7.6 million in lieu of the jury’s net award of $9.7 million or any other related costs or fees. $4.0 million of the settlement amount was paid to us on May 16, 2014, with the balance of $3.6 million paid to us on May 30, 2014. We recorded a gain of $7.6 million associated with this settlement in the quarter ended July 31, 2014. As a result of the settlement agreement, the $1.1 million payable to Chicony for contract manufacturing costs has been legally dismissed and discharged and recorded as an offset to Cost of Revenues in the quarter ended July 31, 2014. | ||
Further pursuant to the settlement agreement, each party released the other and its affiliates from any and all claims related to the subject matter of the litigation and we covenanted not to sue Chicony on the next 500,000 power adapters sold by Chicony after May 15, 2014 that we allege infringe on our intellectual property rights. The settlement agreement also contains other representations, warranties and covenants of both parties that are customary for an agreement of this type. | ||
On September 1, 2011, subsequent to receiving an infringement notification from us, ACCO Brands USA LLC and its Kensington Computer Products Group division (collectively “Kensington”) filed a lawsuit against us alleging that five of our patents relating to power technology are invalid and/or not infringed by products made and/or sold by Kensington. On February 29, 2012, we denied these claims and filed a cross-complaint alleging infringement by Kensington of each of these five patents. A number of these patents are currently the subject of re-examination proceedings initiated by Kensington or other third parties. On February 4, 2014, Kensington entered into a settlement and licensing agreement with the Company with an effective date of February 1, 2014 that dismissed all claims between the two parties arising from the litigation referenced above. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Balance at Beginning of Year | Charged to Cost and Expense (Recovery) | Deductions | Other Changes Add (Deduct) | Balance at | ||||||||||||||||
End of Year | |||||||||||||||||||||
Allowance for doubtful accounts and provision for unbilled receivables (deducted from accounts receivable): | |||||||||||||||||||||
Year ended January 31, 2015 | $ | 40 | $ | — | $ | — | $ | (40 | ) | $ | — | ||||||||||
Year ended January 31, 2014 | $ | 24 | $ | 16 | $ | — | $ | — | $ | 40 | |||||||||||
Allowance for deferred tax assets: | |||||||||||||||||||||
Year ended January 31, 2015 | $ | 16,675 | $ | — | $ | — | $ | (569 | ) | $ | 16,106 | ||||||||||
Year ended January 31, 2014 | $ | 17,749 | $ | — | $ | — | $ | (1,074 | ) | $ | 16,675 | ||||||||||
Reserve for obsolete inventory: | |||||||||||||||||||||
Year ended January 31, 2015 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Year ended January 31, 2014 | $ | 631 | $ | — | $ | — | $ | (631 | ) | $ | — | ||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
Our consolidated financial statements include the accounts of Comarco, Inc. and CWT. All material intercompany balances, transactions, and profits have been eliminated. | |
Liquidity Disclosure [Policy Text Block] | Future Operations, Liquidity and Capital Resources |
The consolidated financial statements have been prepared assuming that we will continue to operate as a going concern, which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business. Our consolidated financial statements do not reflect any adjustments related to the outcome of this uncertainty. Our future is highly dependent on our ability to successfully resolve our current litigation, capitalize on our portfolio of patents, generate positive cash flows and obtain borrowings or raise capital to meet our liquidity needs. | |
As previously announced in August 2013, Lenovo Information Products Co., Ltd. (“Lenovo”), our only material customer, notified us of their intention to cease offering our Constellation product, the power adapter we designed and developed for Lenovo, and terminated its relationship with us. We completed shipping product to Lenovo during our third quarter ended November 30, 2013. The loss of Lenovo as a customer has had a material adverse impact on our results of operations. We have reduced and/or eliminated certain operating expenses to minimize future losses and cash burn and will continue our efforts in this regard. | |
Two of our recent litigation matters have concluded. In the Chicony Power Technology, Co. Ltd., (“Chicony”) matter, effective as of May 15, 2014, Chicony entered into a settlement agreement with us that dismissed all claims between the two parties arising from the litigation. Pursuant to the terms of the settlement agreement, Chicony agreed to pay us $7.6 million. Settlement amounts of $4.0 million and $3.6 million were paid on May 16, 2014 and May 30, 2014, respectively. Of the $7.6 million, we received $6.5 million, net of $1.1 million in attorneys’ fees and other costs. In connection with the settlement, certain contract manufacturer costs payable to Chicony totaling $1.1 million were discharged and reflected as a reduction of cost of revenues. In our litigation with ACCO Brands USA LLC and its Computer Products Group division (collectively “Kensington”), on February 4, 2014, we entered into a confidential settlement and licensing agreement with an effective date of February 1, 2014 that establishes a forward royalty program and dismissed all claims between the two parties arising from this matter. | |
On March 10, 2014, we filed a lawsuit against Targus Group International, Inc. (“Targus”) for patent infringement, breach of contract, intentional interference with contract, violation of business and professional codes, misrepresentation and fraudulent concealment (the “Federal Action”). Targus sought reexamination the patents at issue. The Federal Action was voluntarily dismissed without prejudice to re-filing the federal claims. A state court action for Breach of Contract, Fraudulent Concealment, Unfair Competition and Accounting was then filed in the Orange County Superior Court on June 5, 2014 (the “State Court Action”). On December 4, 2014, the Court ordered the State Court Action into Arbitration and the arbitration hearing is set for December 2015. | |
On February 13, 2015, we filed a lawsuit against Best Buy Co., Inc. (“Best Buy”) for patent infringement under the patent laws of the United States. The complaint alleges that certain Best Buy power charging products sold in the United States under the Rocketfish brand infringe the Company’s patented intellectual property. This lawsuit is part of the Company’s ongoing and accelerated efforts to methodically pursue those companies that the Company believes have infringed on the intellectual property estate that the Company has developed over the last 20 years. | |
On February 3, 2015, we filed a lawsuit against Apple, Inc. (“Apple”) for patent infringement. The complaint alleges that Apple products sold in the United States utilizing the Apple Lightning® power supply adapter system, including most iPad®, iPhone®, and iPod® products, infringe the Company’s patented intellectual property. This lawsuit represents Comarco’s most significant enforcement effort to date, and demonstrates the Company’s ongoing and accelerated efforts to methodically pursue those companies that the Company believes have infringed on the intellectual property estate that the Company has developed over the last 20 years. | |
We believe that our patent portfolio covering key technical aspects of our products could potentially generate a future revenue stream based upon royalties paid to us by others for the use of some or all of our patents in third party products. We continue to explore opportunities to expand, protect, and monetize our patent portfolio, including through the sale or licensing of our patent portfolio. We may or may not resume our traditional activities of providing innovative charging solutions for battery powered devices. There are no assurances that any of these possible opportunities or activities will occur or be successful. | |
We had working capital totaling approximately $0.6 million as of January 31, 2015. We are currently generating de minimis revenues and have ceased traditional operations. Our future is highly dependent on our ability to successfully resolve our current litigation, capitalize on our portfolio of patents, generate positive cash flows and obtain borrowings or raise capital to meet our future liquidity needs. | |
We continue to analyze a range of alternatives to build and/or preserve value for our stakeholders, including, but not limited to, exploring additional investment and incremental financing from current and/or new investors, the engagement of advisors to assist in exploring strategic options for us as well as identifying potential partnerships for the purpose of monetizing some or all of the our patent portfolio and past, present, and future infringement claims. There can be no assurances that we will be successful in implementing any of these alternatives, or if implemented, that any of these alternatives will successfully preserve or increase shareholder value. | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the years reported. Actual results could materially differ from those estimates. | |
Certain accounting principles require subjective and complex judgments to be used in the preparation of financial statements. Accordingly, a different financial presentation could result depending on the judgments, estimates, or assumptions that are used. Such estimates and assumptions include, but are not specifically limited to, those required in the assessment of the impairment of long-lived assets, allowance for doubtful accounts, valuation allowances for deferred tax assets, valuation of derivative liabilities and determination of stock-based compensation. | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition |
Revenue from product sales was recognized upon shipment of products provided there were no uncertainties regarding customer acceptance, persuasive evidence of an arrangement existed, the sales price was fixed or determinable, and collectability was probable. Generally, our products were shipped FOB named point of shipment, whether it was Lake Forest, CA which was the location of our corporate headquarters, or China, the shipping point for most of our contract manufacturers. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents |
All highly liquid investments with original maturity dates of three months or less when acquired are classified as cash and cash equivalents. The fair value of cash and cash equivalents approximates the amounts shown in the consolidated financial statements. Cash and cash equivalents are generally maintained in uninsured accounts, typically Eurodollar deposits with daily liquidity, which are subject to investment risk including possible loss of principal invested. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash |
Our restricted cash balances are secured by separate bank accounts and represent a $5,000 which serves as collateral for credit card chargebacks associated with our internet website. During fiscal 2015, $77,000 letter of credit that formally served as the security deposit for our corporate office lease was cancelled and we are in the process of renewing this letter of credit | |
Accounts Receivable from Suppliers [Policy Text Block] | Accounts Receivable due from Suppliers |
Oftentimes we were able to source components locally that we later sold to our contract manufacturers, who built the finished goods, and other suppliers. This was especially the case when new products were initially introduced into production. Sales to our contract manufacturers (or “CMs”) and other suppliers were excluded from revenue and were recorded as a reduction to cost of revenue. During fiscal 2013, our relationship with Power System Technologies, Ltd. (formerly Flextronics Electronics) the CM who builds the product we sell to Lenovo transitioned from a relationship where we directly sourced just a few components in the bill of material to a process where we directly sourced all of the component parts in the bill of material. As of January 31, 2015, the entire accounts receivable due from suppliers balance was from Zheng Ge Electrical Co., Ltd. (“Zheng Ge”), a tip supplier for the Bronx product, which was subject to a recall. As of January 31, 2015, we did not provide an allowance for doubtful accounts against the Zheng Ge receivable as there is a larger offsetting liability to Zheng Ge. | |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment |
Property and equipment are stated at cost less accumulated depreciation and amortization. Additions, improvements, and major renewals are capitalized; maintenance, repairs, and minor renewals are expensed as incurred. Depreciation and amortization is calculated on a straight-line basis over the expected useful lives of the property and equipment. The expected useful lives of office furnishings and fixtures are five to seven years, and of equipment and purchased software are two to five years. The expected useful life of tooling equipment, molds used for pre-production and mass production of our power adapters, is 18 months. The expected useful life of leasehold improvements, which is included in office furnishings and fixtures, is the lesser of the term of the lease or five years. | |
We evaluate property and equipment for impairment when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. Factors considered important which could trigger an impairment review include, but are not limited to, significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for our overall business, and significant negative industry or economic trends. If such assets are identified to be impaired, the impairment to be recognized is the amount by which the carrying value of the asset exceeds the fair value of the asset. We did not experience any changes in our business or circumstances to require an impairment analysis nor did we recognize any impairment charges during the fiscal years ended January 31, 2015 and 2014. | |
Assets to be disposed of are separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. | |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs |
Research and development costs are charged to expense as incurred and are reported as engineering and support costs. During fiscal years 2015 and 2014, we incurred $0 and approximately $0.4 million in research and development expense, respectively. | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
As part of the process of preparing our consolidated financial statements, we are required to estimate our provision for income taxes in each of the tax jurisdictions in which we conducts business. This process involves estimating our actual current tax expense in conjunction with the evaluation and measurement of temporary differences resulting from differing treatment of certain items for tax and accounting purposes. These temporary timing differences result in the establishment of deferred tax assets and liabilities, which are recorded on a net basis and included in our consolidated balance sheets. On a periodic basis, we assess the probability that our net deferred tax assets, if any, will be recovered. If after evaluating all of the positive and negative evidence, we conclude that it is more likely than not that we will not recover some portion or all of the net deferred tax assets, a valuation allowance is provided with a corresponding charge to tax expense to reserve the portion of the deferred tax assets which are estimated to be more likely than not to be realized. | |
Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any required valuation allowance. We continue to maintain a full valuation allowance on the entire deferred tax asset balance. This valuation allowance was established based on management’s overall assessment of risks and uncertainties related to our future ability to realize, and hence, utilize certain deferred tax assets, primarily consisting of net operating loss carry forwards and temporary differences. Due to the history of operating losses, the adjusted net deferred tax assets remain fully reserved as of January 31, 2015. | |
We apply the uncertain tax provisions of the Income Taxes Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification”), which interpretation clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The topic also provides guidance on de-recognition, classification, interest, and penalties, accounting in interim periods, disclosure, and transition. | |
During fiscal 2015, we recorded a net income of $6.1 million and recorded income tax expense of $42,000, which represents the alternative minimum tax due in the state of California. The net deferred tax asset of $16.1 million at January 31, 2015 continues to be fully reserved. | |
During fiscal 2014, we recorded a net loss of $2.1 million and recorded income tax expense of $1,600, which represents the minimum tax due in the state of California. The net deferred tax asset of $16.7 million at January 31, 2014, $1.1 million of which relates to net operating losses created in fiscal 2014, continues to be fully reserved. | |
Advertising Costs, Policy [Policy Text Block] | Advertising |
Advertising costs are expensed as incurred. Advertising incurred during fiscal 2015 and 2014 totaled $0 and approximately $2,000, respectively. | |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Costs |
We provide limited warranties for products for a period generally not to exceed 24 months. We accrue for the estimated cost of warranties at the time revenue is recognized. The accrual is consistent with our actual claims experience. Should actual warranty claim rates differ from our estimates, revisions to the liability would be required. | |
Derivatives, Policy [Policy Text Block] | Derivative Liabilities |
A derivative is an instrument whose value is “derived” from an underlying instrument or index such as a future, forward, swap, option contract, or other financial instrument with similar characteristics, including certain derivative instruments embedded in other contracts and for hedging activities. As a matter of policy, the Company does not invest in separable financial derivatives or engage in hedging transactions. However, the Company entered into certain financing transactions in fiscal 2013 that involved financial equity instruments containing certain features that have resulted in the instruments being deemed derivatives. The Company may engage in other similar complex financing transactions in the future, but not with the intention to enter into derivative instruments. Derivatives are measured at fair value using the Monte Carlo simulation pricing model and marked to market through earnings. However, such new and/or complex instruments may have immature or limited markets. As a result, the pricing models used for valuation of derivatives often incorporate significant estimates and assumptions. Changes in these subjective assumptions can materially affect the estimate of the fair value of derivative liabilities and, consequently, the related amount recognized as loss due to change in fair value of derivative liabilities on the consolidated statement of operations. Furthermore, depending on the terms of a derivative, the valuation of derivatives may be removed from the financial statements upon exercise or conversion of the underlying instrument into some other security. | |
We evaluate free-standing derivative instruments to properly classify such instruments within stockholders’ equity or as liabilities in our financial statements. Our policy is to settle instruments indexed to our common shares on a first-in-first-out basis. | |
The classification of a derivative instrument is reassessed at each balance sheet date. If the classification changes as a result of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified. | |
During the second quarter of fiscal 2013, we adopted the guidance, as codified in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 815-40, Derivatives and Hedging, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock,that requires us to apply a two-step model in determining whether a financial instrument or an embedded feature is indexed to our own stock and thus enables it to qualify for equity classification. The warrants issued to Broadwood Partners, L.P. (“Broadwood”) contained provisions that adjusted the exercise price in the event of certain dilutive issuance of our securities (see Note 7). Accordingly, the Company considered the warrants to be subject to price protection and classified them as derivative liabilities at the date of issuance with a fair value of $1.4 million and a corresponding discount to the underlying loan payable (see Note 7). On August 13, 2014, we entered into an Amendment and Release Agreement that canceled and replaced the Broadwood warrants. Accordingly, the derivative liability associated with the Broadwood warrants was reversed on the cancellation date and the replacement warrants, which qualified for classification as equity, were added to additional paid in capital. | |
Additionally, during the first quarter of fiscal 2014, we entered into a Loan Agreement with Elkhorn Partners Limited Partnership (“Elkhorn”) which contained convertible provisions that allow Elkhorn to convert the loan into common stock. The conversion price could have been adjusted in the event of certain dilutive issuance of our securities. Accordingly, the Company considered the convertible debt to be subject to price protection and created a discount to the underlying loan payable and classified that fair value as derivative liabilities at the date of issuance with a fair value of $0.6 million (see Note 7). On June 3, 2014, the Company repaid the Elkhorn Loan in full and as a result, the discount to the loan payable and related derivative liability were extinguished and charged to earnings for the year ended January 31, 2015. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk |
Our cash and cash equivalents are principally on deposit in a non-insured short-term asset management account at a large financial institution. Accounts receivable potentially subject us to concentrations of credit risk. We generally do not require collateral for accounts receivable. When required, we maintain allowances for credit losses, and to date such losses have been within management’s expectations. Once a specific account receivable has been reserved for as potentially uncollectible, our policy is to continue to pursue collections for a period of up to one year prior to recording a receivable write-off. | |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Common Share |
Basic net (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period excluding the dilutive effect of potential common stock, which for us consists solely of stock awards. Diluted earnings per share reflects the dilution that would result from the exercise of all dilutive stock awards outstanding during the period. The effect of such potential common stock is computed using the treasury stock method (see Note 11). | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation |
We grant stock awards, restricted stock and restricted stock units for a fixed number of shares to employees, consultants, and directors with an exercise or grant price equal to the fair value of the shares at the date of grant. | |
We account for stock-based compensation using the modified prospective method, which requires measurement of compensation cost for all stock awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments |
Our financial instruments include cash and cash equivalents, accounts receivable due suppliers, accounts payable, accrued liabilities, a short-term loan and derivative liabilities. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. | |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Legal expense classification |
Our legal expenses are classified in either selling, general, and administrative expenses or engineering and support expenses depending on the nature of the legal expense. All legal expenses incurred related to our intellectual property, including associated litigation expense and maintenance of our patent portfolio, are included in engineering and support expenses in our consolidated statement of operations. All other legal expenses, including all other litigation expense and public company legal expense are included in selling, general, and administrative expenses in our consolidated statement of operations. The legal expense included in selling, general and administrative expenses during fiscal 2015 and fiscal 2014 was $0.4 million and $0.7 million, respectively. | |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Management has evaluated events subsequent to January 31, 2015 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements. |
Note_3_Customer_and_Supplier_C1
Note 3 - Customer and Supplier Concentrations (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Customer And Supplier Concentrations [Abstract] | |||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Years Ended January 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Total revenue | $ | - | 100 | % | $ | 4,429 | 100 | % | |||||||||
Customer concentration: | |||||||||||||||||
Lenovo Information Products Co., Ltd. | $ | - | 0 | % | $ | 4,319 | 98 | % | |||||||||
$ | - | 0 | % | $ | 4,319 | 98 | % | ||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Years Ended January 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Revenue: | |||||||||||||||||
Asia-Pacific | $ | - | 0 | % | $ | 4,319 | 98 | % | |||||||||
North America | - | 0 | % | 73 | 2 | % | |||||||||||
Europe | - | 0 | % | 37 | 1 | % | |||||||||||
$ | - | 0 | % | $ | 4,429 | 100 | % | ||||||||||
Schedule of Accounts Receivable by Major Suppliers by Reporting Segments [Table Text Block] | Years Ended January 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Total gross accounts receivable due from suppliers | $ | 122 | 100 | % | $ | 128 | 100 | % | |||||||||
Supplier concentration: | |||||||||||||||||
Zheng Ge Electrical Co., Ltd. | $ | 122 | 100 | % | $ | 122 | 95 | % | |||||||||
$ | 122 | 100 | % | $ | 122 | 95 | % | ||||||||||
Equity Method Investments [Table Text Block] | Years Ended January 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Total gross accounts payable | $ | 737 | 100 | % | $ | 4,363 | 100 | % | |||||||||
Supplier concentration: | |||||||||||||||||
Chicony Power Technology, Co. Ltd. | $ | - | 0 | % | $ | 1,100 | 25 | % | |||||||||
Pillsbury Winthrop Shaw Pittman, LLP | 432 | 59 | % | 1,953 | 45 | % | |||||||||||
$ | 432 | 59 | % | $ | 3,053 | 70 | % |
Note_4_Property_and_Equipment_
Note 4 - Property and Equipment (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | January 31, | January 31, | |||||||
2015 | 2014 | ||||||||
Office furnishing and fixtures | $ | 605 | $ | 605 | |||||
Equipment | 973 | 973 | |||||||
Purchased software | 66 | 66 | |||||||
1,644 | 1,644 | ||||||||
Less: Accumulated depreciation and amortization | (1,636 | ) | (1,630 | ) | |||||
$ | 8 | $ | 14 |
Note_5_Accrued_Liabilities_Tab
Note 5 - Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | January 31, | January 31, | |||||||
2015 | 2014 | ||||||||
Uninvoiced materials and services received | $ | 331 | $ | 458 | |||||
Accrued legal and professional fees | 138 | 161 | |||||||
Accrued payroll and related expenses | 38 | 58 | |||||||
Accrued warranty | 4 | 20 | |||||||
Other | 337 | 315 | |||||||
$ | 848 | $ | 1,012 |
Note_7_Fair_Value_Measurements1
Note 7 - Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Change in estimated | ||||||||||||||||
Change in | fair value recognized | ||||||||||||||||
February 1, | Derivative | in results of | January 31, | ||||||||||||||
Description | 2014 | Liabilities | operations | 2015 | |||||||||||||
Broadwood warrants | $ | 2,426 | $ | (2,294 | ) | $ | (132 | ) | $ | - | |||||||
Elkhorn conversion features | 94 | - | (94 | ) | - | ||||||||||||
$ | 2,520 | $ | (2,294 | ) | $ | (226 | ) | $ | - |
Note_8_Income_Taxes_Tables
Note 8 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years Ended January 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal: | |||||||||||||||||
Current | $ | — | $ | — | |||||||||||||
Deferred | — | — | |||||||||||||||
State: | |||||||||||||||||
Current | 42 | 2 | |||||||||||||||
Deferred | — | — | |||||||||||||||
Foreign: | |||||||||||||||||
Current | — | — | |||||||||||||||
$ | 42 | $ | 2 | ||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years Ended January 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Amount | Percent Pretax Income | Amount | Percent Pretax Income | ||||||||||||||
Income/(Loss) from operations before income taxes | $ | 6,082 | 100 | % | $ | (2,056 | ) | 100 | % | ||||||||
Computed “expected” income tax benefit on loss from operations before income taxes | $ | 2,068 | 34 | % | $ | (699 | ) | (34 | )% | ||||||||
State tax, net of federal benefit | 387 | 6 | % | 2 | 0 | % | |||||||||||
Tax credits | — | 0 | % | — | 0 | % | |||||||||||
Change in valuation allowance | (569 | ) | (9 | )% | (1,074 | ) | (52 | )% | |||||||||
Permanent differences | 118 | 2 | % | (93 | ) | (5 | )% | ||||||||||
Return to provision adjustments | — | 0 | % | — | 0 | % | |||||||||||
Change in state tax rate | (1,978 | ) | (33 | )% | 1,866 | 91 | % | ||||||||||
Other, net | 16 | 0 | % | — | 0 | ||||||||||||
Income tax expense | $ | 42 | 1 | % | $ | 2 | — | ||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | January 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Property and equipment, principally due to differing depreciation methods | 161 | 134 | |||||||||||||||
Accruals and reserves | 206 | 124 | |||||||||||||||
Net research and manufacturer investment credit carryforwards | 2,325 | 2,308 | |||||||||||||||
Net operating losses | 13,151 | 13,904 | |||||||||||||||
AMT credit carryforwards | 136 | 110 | |||||||||||||||
Stock based compensation | 127 | 93 | |||||||||||||||
Other | — | 2 | |||||||||||||||
Total gross deferred tax assets | 16,106 | 16,675 | |||||||||||||||
Less: valuation allowance | (16,106 | ) | (16,675 | ) | |||||||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Unrecognized Tax Benefits | ||||||||||||||||
Balance at February 1, 2014 | $ | 777 | |||||||||||||||
Additions based on tax positions related to the current year | — | ||||||||||||||||
Reductions due to lapses of statute of limitations | — | ||||||||||||||||
Tax positions of prior years | — | ||||||||||||||||
Balance at January 31, 2015 | $ | 777 |
Note_9_Stock_Compensation_Tabl
Note 9 - Stock Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Years Ended | |||||||||||||||||||||||
January 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Stock-based compensation expense | $ | 48 | $ | 77 | ||||||||||||||||||||
Impact on basic and diluted earnings per share | $ | (0.00 | ) | $ | (0.01 | ) | ||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Outstanding Restricted Stock | |||||||||||||||||||||||
Weighted-Ave. | ||||||||||||||||||||||||
Number of | Exercise | |||||||||||||||||||||||
Shares | Price | |||||||||||||||||||||||
Balance, January 31, 2013 | - | $ | - | |||||||||||||||||||||
Restricted stock granted | 420,000 | 0.18 | ||||||||||||||||||||||
Restricted stock forfeited | - | - | ||||||||||||||||||||||
Balance, January 31, 2014 | 420,000 | $ | 0.18 | |||||||||||||||||||||
Restricted stock granted | - | - | ||||||||||||||||||||||
Restricted stock forfeited | (70,000 | ) | 0.18 | |||||||||||||||||||||
Balance, January 31, 2015 | 350,000 | $ | 0.18 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Awards Outstanding | Options Exercisable | ||||||||||||||||||||||
Weighted-Ave. | ||||||||||||||||||||||||
Range of | Number | Remaining | Weighted-Ave. | Number | Weighted-Ave. | |||||||||||||||||||
Exercise/Grant Prices | Outstanding | Contractual Life | Exercise/Grant Price | Exercisable | Exercise Price | |||||||||||||||||||
$ | 0.4 | 465,000 | 7.7 | $ | 0.4 | 465,000 | $ | 0.4 | ||||||||||||||||
$ | 1.09 | 100,000 | 3.78 | 1.09 | 60,000 | 1.09 | ||||||||||||||||||
$ | 4.9 | 15,000 | 3.08 | 4.9 | 15,000 | 4.9 | ||||||||||||||||||
$ | 10.43 | 20,000 | 1.38 | 10.43 | 20,000 | 10.43 | ||||||||||||||||||
600,000 | 0.96 | 560,000 | 0.95 | |||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Outstanding Options | |||||||||||||||||||||||
Weighted-Ave. | ||||||||||||||||||||||||
Number of | Exercise | |||||||||||||||||||||||
Shares | Price | |||||||||||||||||||||||
Balance, January 31, 2013 | 764,500 | $ | 1.48 | |||||||||||||||||||||
Options granted | - | - | ||||||||||||||||||||||
Options canceled or expired | (126,000 | ) | 2.77 | |||||||||||||||||||||
Options exercise | - | - | ||||||||||||||||||||||
Balance, January 31, 2014 | 638,500 | $ | 1.22 | |||||||||||||||||||||
Options granted | - | - | ||||||||||||||||||||||
Options canceled or expired | (38,500 | ) | 5.32 | |||||||||||||||||||||
Options exercise | - | - | ||||||||||||||||||||||
Balance, January 31, 2015 | 600,000 | $ | 0.96 | |||||||||||||||||||||
Stock Options Exercisable at January 31, 2015 | 560,000 | $ | 0.95 |
Note_10_Net_Income_Loss_Per_Sh1
Note 10 - Net Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended | ||||||||
2015 | 2014 | ||||||||
Net income (loss) | $ | 6,040 | $ | (2,058 | ) | ||||
Basic net income (loss) per share: | |||||||||
Weighted-average shares outstanding-Basic | 14,684 | 14,397 | |||||||
Basic net income (loss) per share | $ | 0.41 | $ | (0.14 | ) | ||||
Diluted net inome (loss) per share: | |||||||||
Weighted average shares outstanding - basic | 14,684 | 14,397 | |||||||
Effect of potentially dilutive securities | 179 | - | |||||||
Weighted average shares outstanding - diluted | 14,863 | 14,397 | |||||||
Diluted net income (loss) per share | $ | 0.41 | $ | (0.14 | ) |
Note_12_Commitments_and_Contin1
Note 12 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating Leases | ||||
Fiscal Year: | |||||
2016 | $ | 256 | |||
2017 | 152 | ||||
Total minimum lease payments | $ | 408 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Year | Charged to Cost and Expense (Recovery) | Deductions | Other Changes Add (Deduct) | Balance at | ||||||||||||||||
End of Year | |||||||||||||||||||||
Allowance for doubtful accounts and provision for unbilled receivables (deducted from accounts receivable): | |||||||||||||||||||||
Year ended January 31, 2015 | $ | 40 | $ | — | $ | — | $ | (40 | ) | $ | — | ||||||||||
Year ended January 31, 2014 | $ | 24 | $ | 16 | $ | — | $ | — | $ | 40 | |||||||||||
Allowance for deferred tax assets: | |||||||||||||||||||||
Year ended January 31, 2015 | $ | 16,675 | $ | — | $ | — | $ | (569 | ) | $ | 16,106 | ||||||||||
Year ended January 31, 2014 | $ | 17,749 | $ | — | $ | — | $ | (1,074 | ) | $ | 16,675 | ||||||||||
Reserve for obsolete inventory: | |||||||||||||||||||||
Year ended January 31, 2015 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Year ended January 31, 2014 | $ | 631 | $ | — | $ | — | $ | (631 | ) | $ | — |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||||||
Jan. 31, 2015 | Jan. 31, 2014 | 30-May-14 | 30-May-14 | 16-May-14 | 15-May-14 | 30-May-14 | 16-May-14 | Feb. 04, 2014 | Jul. 31, 2013 | Apr. 30, 2014 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Working Capital | $600,000 | ||||||||||
Increase (Decrease) in Restricted Cash | -77,000 | -28,000 | |||||||||
Research and Development Expense | 0 | 400,000 | |||||||||
Net Income (Loss) Attributable to Parent | 6,040,000 | -2,058,000 | |||||||||
Income Tax Expense (Benefit) | 42,000 | 2,000 | |||||||||
Deferred Tax Assets, Gross | 16,106,000 | 16,675,000 | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 13,151,000 | 13,904,000 | |||||||||
Advertising Expense | 0 | 2,000 | |||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Legal Fees | 400,000 | 700,000 | |||||||||
Warrant [Member] | Broadwood Partners, L.P. [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Derivative Financial Instruments Liabilities Fair Value Disclosure at Issuance Date | 1,400,000 | ||||||||||
Conversion Features [Member] | Elkhorn Partners Limited Partnership [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Derivative Financial Instruments Liabilities Fair Value Disclosure at Issuance Date | 600,000 | ||||||||||
Office Equipment [Member] | Minimum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||||
Office Equipment [Member] | Maximum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||||||
Equipment and Purchased Software [Member] | Minimum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||||||
Equipment and Purchased Software [Member] | Maximum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||||
Tooling Equipment [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 18 months | ||||||||||
Leasehold Improvements [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||||
Chicony Power Technology Company Ltd [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Litigation Settlement, Amount | 7,600,000 | 9,700,000 | |||||||||
Proceeds from Legal Settlements | 3,600,000 | 6,500,000 | 4,000,000 | 6,500,000 | 4,000,000 | ||||||
Previously Accrued Seeking Payments | 1,100,000 | 1,100,000 | 1,100,000 | 1,100,000 | |||||||
Collateral for Credit Card [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Restricted Cash and Cash Equivalents | 5,000 | ||||||||||
California Franchise Tax Board [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Income Tax Expense (Benefit) | $42,000 | $1,600 |
Note_3_Customer_and_Supplier_C2
Note 3 - Customer and Supplier Concentrations (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||||
In Millions, unless otherwise specified | Oct. 31, 2013 | 30-May-14 | 30-May-14 | 16-May-14 | 15-May-14 | 30-May-14 | 16-May-14 | Feb. 04, 2014 | 28-May-14 | Jul. 31, 2014 |
Pillsbury Winthrop Shaw Pittman, LLP [Member] | ||||||||||
Note 3 - Customer and Supplier Concentrations (Details) [Line Items] | ||||||||||
Lump Sum Legal Fee | $1.50 | |||||||||
Accrued Professional Fees | 0.4 | |||||||||
Interest Rate For Outstanding Legal Fees Payable Solely With Settlement | 20.00% | |||||||||
Reversed in Second Quarter [Member] | Chicony Power Technology Company Ltd [Member] | ||||||||||
Note 3 - Customer and Supplier Concentrations (Details) [Line Items] | ||||||||||
Major Suppliers Accounts Payable Current | 1.1 | |||||||||
Constellation Units [Member] | ||||||||||
Note 3 - Customer and Supplier Concentrations (Details) [Line Items] | ||||||||||
Units Shipped | 20,000 | |||||||||
Field Replacement Units [Member] | ||||||||||
Note 3 - Customer and Supplier Concentrations (Details) [Line Items] | ||||||||||
Units Shipped | 11,000 | |||||||||
Chicony Power Technology Company Ltd [Member] | ||||||||||
Note 3 - Customer and Supplier Concentrations (Details) [Line Items] | ||||||||||
Litigation Settlement, Amount | 7.6 | 9.7 | ||||||||
Proceeds from Legal Settlements | 3.6 | 6.5 | 4 | 6.5 | 4 | |||||
Litigation Settlement, Expense | $1.10 |
Note_3_Customer_and_Supplier_C3
Note 3 - Customer and Supplier Concentrations (Details) - Customer Concentration Risk Revenue (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Revenue, Major Customer [Line Items] | ||
Total Revenue | $0 | $4,429 |
Revenue Percentage | 100.00% | 100.00% |
Lenovo Information Products Co Ltd [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 0 | 4,319 |
Revenue Percentage | 0.00% | 98.00% |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | $0 | $4,319 |
Revenue Percentage | 0.00% | 98.00% |
Note_3_Customer_and_Supplier_C4
Note 3 - Customer and Supplier Concentrations (Details) - Revenues by Geographic Location (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Revenue: | ||
Revenue | $0 | $4,429 |
Concentration percent | 100.00% | 100.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Asia Pacific [Member] | ||
Revenue: | ||
Concentration percent | 0.00% | 98.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | North America [Member] | ||
Revenue: | ||
Concentration percent | 0.00% | 2.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Europe [Member] | ||
Revenue: | ||
Concentration percent | 0.00% | 1.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | ||
Revenue: | ||
Concentration percent | 0.00% | 100.00% |
Asia Pacific [Member] | ||
Revenue: | ||
Revenue | 0 | 4,319 |
North America [Member] | ||
Revenue: | ||
Revenue | 0 | 73 |
Europe [Member] | ||
Revenue: | ||
Revenue | $0 | $37 |
Note_3_Customer_and_Supplier_C5
Note 3 - Customer and Supplier Concentrations (Details) - Supplier Concentration Risk Accounts Receivable (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Note 3 - Customer and Supplier Concentrations (Details) - Supplier Concentration Risk Accounts Receivable [Line Items] | ||
Accounts receivable | $122 | $128 |
Concentration percentage | 100.00% | 100.00% |
Zheng Ge Electrical Company Ltd [Member] | Account Receivable from Suppliers [Member] | ||
Note 3 - Customer and Supplier Concentrations (Details) - Supplier Concentration Risk Accounts Receivable [Line Items] | ||
Accounts receivable | 122 | 122 |
Concentration percentage | 100.00% | 95.00% |
Account Receivable from Suppliers [Member] | ||
Note 3 - Customer and Supplier Concentrations (Details) - Supplier Concentration Risk Accounts Receivable [Line Items] | ||
Accounts receivable | $122 | $122 |
Concentration percentage | 100.00% | 95.00% |
Note_3_Customer_and_Supplier_C6
Note 3 - Customer and Supplier Concentrations (Details) - Supplier Concentration Risk Accounts Payable (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts payable (in Dollars) | $737 | $4,363 |
Concentration percentage | 100.00% | 100.00% |
Chicony Power Technology Company Ltd [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Concentration percentage | 0.00% | 25.00% |
Chicony Power Technology Company Ltd [Member] | Accounts Payable [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts payable (in Dollars) | 1,100 | |
Pillsbury Winthrop Shaw Pittman LLP [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Concentration percentage | 59.00% | 45.00% |
Pillsbury Winthrop Shaw Pittman LLP [Member] | Accounts Payable [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts payable (in Dollars) | 432 | 1,953 |
Chicony Power Technology Company Ltd and Pilsbury Winthrop Shaw Pittman LLP [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Concentration percentage | 59.00% | 70.00% |
Chicony Power Technology Company Ltd and Pilsbury Winthrop Shaw Pittman LLP [Member] | Accounts Payable [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts payable (in Dollars) | $432 | $3,053 |
Supplier Concentration Risk [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Concentration percentage | 100.00% | 100.00% |
Note_4_Property_and_Equipment_1
Note 4 - Property and Equipment (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $6,000 | $55,000 |
Note_4_Property_and_Equipment_2
Note 4 - Property and Equipment (Details) - Compenents of Property, Plant and Equipment (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $1,644 | $1,644 |
Less: Accumulated depreciation and amortization | -1,636 | -1,630 |
8 | 14 | |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 605 | 605 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 973 | 973 |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $66 | $66 |
Note_5_Accrued_Liabilities_Det
Note 5 - Accrued Liabilities (Details) (Zheng Ge Electrical Company Ltd [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
Note 5 - Accrued Liabilities (Details) [Line Items] | |
Accounts Payable and Other Accrued Liabilities | $0.30 |
Uninvoiced Materials and Services Received (Member) | |
Note 5 - Accrued Liabilities (Details) [Line Items] | |
Accounts Payable and Other Accrued Liabilities | $0.30 |
Percent of Total Uninvoiced Materials and Services | 98.00% |
Note_5_Accrued_Liabilities_Det1
Note 5 - Accrued Liabilities (Details) - Accrued Liabilities (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Note 5 - Accrued Liabilities (Details) - Accrued Liabilities [Line Items] | ||
Accrued Liabilities | $848 | $1,012 |
Uninvoiced Materials and Services Received (Member) | ||
Note 5 - Accrued Liabilities (Details) - Accrued Liabilities [Line Items] | ||
Accrued Liabilities | 331 | 458 |
Accrued Legal and Professional Fees [Member] | ||
Note 5 - Accrued Liabilities (Details) - Accrued Liabilities [Line Items] | ||
Accrued Liabilities | 138 | 161 |
Accrued Payroll and Related Expenses [Member] | ||
Note 5 - Accrued Liabilities (Details) - Accrued Liabilities [Line Items] | ||
Accrued Liabilities | 38 | 58 |
Accrued Warranty [Member] | ||
Note 5 - Accrued Liabilities (Details) - Accrued Liabilities [Line Items] | ||
Accrued Liabilities | 4 | 20 |
Accrued Other Liabilities [Member] | ||
Note 5 - Accrued Liabilities (Details) - Accrued Liabilities [Line Items] | ||
Accrued Liabilities | $337 | $315 |
Note_6_Loan_Agreement_Details
Note 6 - Loan Agreement (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Feb. 11, 2013 | Jan. 31, 2014 | Jul. 27, 2012 | Jan. 31, 2015 | Jul. 31, 2014 | Feb. 08, 2013 | Aug. 13, 2014 | |
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Common Stock, Shares, Issued (in Shares) | 6,250,000 | 14,684,165 | 14,684,165 | ||||
Sale of Stock, Price Per Share | $0.16 | ||||||
Proceeds from Issuance of Common Stock (in Dollars) | $1,000,000 | $1,030,000 | |||||
Share Price | $0.14 | $0.17 | $0.14 | $0.16 | |||
Proceeds from Loans (in Dollars) | 2,500,000 | 1,500,000 | |||||
Debt Instrument, Convertible, Conversion Price | $0.25 | ||||||
Stock Purchase and Warrant Agreement [Member] | Warrant Commitment Letter, Terms [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Investment Warrants, Exercise Price | $1 | ||||||
Stock Purchase Agreement, Additional Warrant Shares, Maximum (in Shares) | 1,000,000 | ||||||
Stock Purchase and Warrant Agreement [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Stock Purchase Agreement Shares Agreed (in Shares) | 3,000,000 | ||||||
Stock Purchase Agreement Share Price | $1 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 1,704,546 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | ||||||
Stock Purchase Agreement Minimum Additional Equity Securities to be Sold (in Dollars) | 3,000,000 | ||||||
New Warrant [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.16 | ||||||
Class of Warrant or Right, Outstanding (in Shares) | 2,350,000 | ||||||
Senior Secured [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Debt Instrument, Face Amount (in Dollars) | 1,500,000 | 2,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||
First 12 Months of Loan [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||||
After First 12 Months of Loan [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | ||||||
Maximum [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Debt Instrument, Convertible, Conversion Price | $0.25 | ||||||
Pay Principal Amount And Accrued Interest [Member] | |||||||
Note 6 - Loan Agreement (Details) [Line Items] | |||||||
Proceeds from Loans (in Dollars) | $2,100,000 |
Note_7_Fair_Value_Measurements2
Note 7 - Fair Value Measurements (Details) - Changes in Fair Value of Level 3 Financial Instruments (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Derivative liabilities, beginning | $2,520 |
Change in derivative liabilities | -2,294 |
Change in estimated fair value recognized in results of operations | 0 |
Derivative liabilities, ending | -226 |
Warrant [Member] | Broadwood Partners, L.P. [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Derivative liabilities, beginning | 2,426 |
Change in derivative liabilities | -2,294 |
Change in estimated fair value recognized in results of operations | 0 |
Derivative liabilities, ending | -132 |
Conversion Features [Member] | Elkhorn Partners Limited Partnership [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Derivative liabilities, beginning | 94 |
Change in estimated fair value recognized in results of operations | 0 |
Derivative liabilities, ending | ($94) |
Note_8_Income_Taxes_Details
Note 8 - Income Taxes (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2015 |
Note 8 - Income Taxes (Details) [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | ($0.60) | |
Domestic Tax Authority [Member] | ||
Note 8 - Income Taxes (Details) [Line Items] | ||
Tax Credit Carryforward, Amount | 1.7 | |
Operating Loss Carryforwards | 34 | |
State and Local Jurisdiction [Member] | ||
Note 8 - Income Taxes (Details) [Line Items] | ||
Tax Credit Carryforward, Amount | 2.1 | |
Operating Loss Carryforwards | $27 |
Note_8_Income_Taxes_Details_In
Note 8 - Income Taxes (Details) - Income Tax Expense (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Federal: | ||
Current | $0 | $0 |
Deferred | 0 | 0 |
State: | ||
Current | 42 | 2 |
Deferred | 0 | 0 |
Foreign: | ||
Current | 0 | 0 |
$42 | $2 |
Note_8_Income_Taxes_Details_Ef
Note 8 - Income Taxes (Details) - Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Effective Income Tax Rate Reconciliation [Abstract] | ||
Income/(Loss) from operations before income taxes (in Dollars) | $6,082 | ($2,056) |
Income/(Loss) from operations before income taxes | 100.00% | 100.00% |
Computed bexpectedb income tax benefit on loss from operations before income taxes (in Dollars) | 2,068 | -699 |
Computed bexpectedb income tax benefit on loss from operations before income taxes | 34.00% | -34.00% |
State tax, net of federal benefit (in Dollars) | 387 | 2 |
State tax, net of federal benefit | 6.00% | 0.00% |
Tax credits | 0.00% | 0.00% |
Change in valuation allowance (in Dollars) | -569 | -1,074 |
Change in valuation allowance | -9.00% | -52.00% |
Permanent differences (in Dollars) | 118 | -93 |
Permanent differences | 2.00% | -5.00% |
Return to provision adjustments | 0.00% | 0.00% |
Change in state tax rate (in Dollars) | -1,978 | 1,866 |
Change in state tax rate | -33.00% | 91.00% |
Other, net (in Dollars) | 16 | |
Other, net | 0.00% | 0.00% |
Income tax expense (in Dollars) | $42 | $2 |
Income tax expense | 1.00% |
Note_8_Income_Taxes_Details_De
Note 8 - Income Taxes (Details) - Deferred Tax Assets and Liabilities (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Property and equipment, principally due to differing depreciation methods | $161 | $134 |
Accruals and reserves | 206 | 124 |
Net research and manufacturer investment credit carryforwards | 2,325 | 2,308 |
Net operating losses | 13,151 | 13,904 |
AMT credit carryforwards | 136 | 110 |
Stock based compensation | 127 | 93 |
Other | 2 | |
Total gross deferred tax assets | 16,106 | 16,675 |
Less: valuation allowance | -16,106 | -16,675 |
Net deferred tax assets | $0 | $0 |
Note_8_Income_Taxes_Details_Re
Note 8 - Income Taxes (Details) - Reconciliation of unrecognized tax benefits (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Reconciliation of unrecognized tax benefits [Abstract] | ||
Balance at | $777 | $777 |
Balance at | $777 | $777 |
Note_9_Stock_Compensation_Deta
Note 9 - Stock Compensation (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Feb. 11, 2013 | Feb. 08, 2013 | 31-May-05 | Jun. 30, 2008 | Dec. 31, 2005 | Jul. 31, 2011 | |
Note 9 - Stock Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,675,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||||||||||
Share Based Compensation Arrangement by Share Based Payment Award Percentage of Optionee Condition | 10.00% | ||||||||||
Share Based Compensation Arrangement by Share Based Payment Award Purchase Price of Common Stock Percent Condition | 110.00% | 110.00% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 600,000 | 638,500 | 764,500 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 420,000 | |||||||||
Share Price (in Dollars per share) | $0.14 | $0.17 | $0.14 | $0.16 | |||||||
Forfeiture Rate | 8.20% | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $7,800 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 months | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 560,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $0.95 | ||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 229,724 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 194,500 | ||||||||||
Restricted Stock [Member] | |||||||||||
Note 9 - Stock Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 300,000 | ||||||||||
Stock Option 1[Member] | |||||||||||
Note 9 - Stock Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 465,000 | ||||||||||
Share Price on the Date of Grant Restricted Stock Units [Member] | |||||||||||
Note 9 - Stock Compensation (Details) [Line Items] | |||||||||||
Share Price (in Dollars per share) | $0.18 | $0.16 | |||||||||
Forfeiture Rate | 10.63% | ||||||||||
Prior Employee Plan [Member] | |||||||||||
Note 9 - Stock Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 825,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 25,000 | ||||||||||
Share Based Compensation Options Maximum Expiration Period Following Grant Date | 10 years | ||||||||||
Share Based Compensation Options Maximum Expiration Period Following Grant Date for Specified Percentage Ownership | 5 years | ||||||||||
Share Based Compensation Determination of Expiration Period Specified Percentage | 10.00% | ||||||||||
2005 Equity Incentive Plan [Member] | |||||||||||
Note 9 - Stock Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 450,000 | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Number of Shares Authorized Including Additional Shares Authorized | 1,100,000 | ||||||||||
Share Based Compensation Options Maximum Expiration Period Following Grant Date | 10 years | ||||||||||
Share Based Compensation Options Maximum Expiration Period Following Grant Date for Specified Percentage Ownership | 5 years | ||||||||||
Share Based Compensation Determination of Expiration Period Specified Percentage | 10.00% | ||||||||||
2011 Equity Incentive Plan [Member] | |||||||||||
Note 9 - Stock Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | ||||||||||
Share Based Compensation Options Maximum Expiration Period Following Grant Date | 10 years | ||||||||||
Share Based Compensation Options Maximum Expiration Period Following Grant Date for Specified Percentage Ownership | 5 years |
Note_9_Stock_Compensation_Deta1
Note 9 - Stock Compensation (Details) - Share-Based Compensation Expense (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Share-Based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $48 | $77 |
Impact on basic and diluted earnings per share | $0 | ($0.01) |
Note_9_Stock_Compensation_Deta2
Note 9 - Stock Compensation (Details) - Restricted Stock Activity (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Note 9 - Stock Compensation (Details) - Restricted Stock Activity [Line Items] | ||
Restricted stock granted | 0 | 420,000 |
Restricted Stock Units (RSUs) [Member] | ||
Note 9 - Stock Compensation (Details) - Restricted Stock Activity [Line Items] | ||
Balance, January 31, | 350,000 | 420,000 |
Balance, January 31, | 0.18 | 0.18 |
Restricted stock granted | 0 | 420,000 |
Restricted stock granted | 0 | 0.18 |
Restricted stock forfeited | -70,000 | |
Restricted stock forfeited | 0.18 |
Note_9_Stock_Compensation_Deta3
Note 9 - Stock Compensation (Details) - Stock Awards Outstanding (USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Note 9 - Stock Compensation (Details) - Stock Awards Outstanding [Line Items] | |
Number Outstanding (in Shares) | 600,000 |
Weighted-Ave. Exercise/Grant Price | $0.96 |
Number Exercisable (in Shares) | 560,000 |
Weighted-Ave. Exercise Price, Exercisable | $0.95 |
Range 1 [Member] | |
Note 9 - Stock Compensation (Details) - Stock Awards Outstanding [Line Items] | |
Range of Exercise/Grant Prices | $0.40 |
Number Outstanding (in Shares) | 465,000 |
Weighted-Ave. Remaining Contractual Life | 7 years 255 days |
Weighted-Ave. Exercise/Grant Price | $0.40 |
Number Exercisable (in Shares) | 465,000 |
Weighted-Ave. Exercise Price, Exercisable | $0.40 |
Range 2 [Member] | |
Note 9 - Stock Compensation (Details) - Stock Awards Outstanding [Line Items] | |
Range of Exercise/Grant Prices | $1.09 |
Number Outstanding (in Shares) | 100,000 |
Weighted-Ave. Remaining Contractual Life | 3 years 284 days |
Weighted-Ave. Exercise/Grant Price | $1.09 |
Number Exercisable (in Shares) | 60,000 |
Weighted-Ave. Exercise Price, Exercisable | $1.09 |
Range 3 [Member] | |
Note 9 - Stock Compensation (Details) - Stock Awards Outstanding [Line Items] | |
Range of Exercise/Grant Prices | $4.90 |
Number Outstanding (in Shares) | 15,000 |
Weighted-Ave. Remaining Contractual Life | 3 years 29 days |
Weighted-Ave. Exercise/Grant Price | $4.90 |
Number Exercisable (in Shares) | 15,000 |
Weighted-Ave. Exercise Price, Exercisable | $4.90 |
Range 4 [Member] | |
Note 9 - Stock Compensation (Details) - Stock Awards Outstanding [Line Items] | |
Range of Exercise/Grant Prices | $10.43 |
Number Outstanding (in Shares) | 20,000 |
Weighted-Ave. Remaining Contractual Life | 1 year 138 days |
Weighted-Ave. Exercise/Grant Price | $10.43 |
Number Exercisable (in Shares) | 20,000 |
Weighted-Ave. Exercise Price, Exercisable | $10.43 |
Note_9_Stock_Compensation_Deta4
Note 9 - Stock Compensation (Details) - Stock Option Activity (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Stock Option Activity [Abstract] | |||
Balance, January 31, | 600,000 | 638,500 | 764,500 |
Balance, January 31, | $0.96 | $1.22 | $1.48 |
Stock Options Exercisable at January 31, 2015 | 560,000 | ||
Stock Options Exercisable at January 31, 2015 | $0.95 | ||
Options canceled or expired | -38,500 | -126,000 | |
Options canceled or expired | $5.32 | $2.77 |
Note_10_Net_Income_Loss_Per_Sh2
Note 10 - Net Income (Loss) Per Share (Details) | 12 Months Ended |
Jan. 31, 2014 | |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 108,000 |
Note_10_Net_Income_Loss_Per_Sh3
Note 10 - Net Income (Loss) Per Share (Details) - Summary of Basic and Diluted Earnings Per Share (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Summary of Basic and Diluted Earnings Per Share [Abstract] | ||
Net income (loss) (in Dollars) | $6,040 | ($2,058) |
Basic net income (loss) per share: | ||
Weighted-average shares outstanding-Basic | 14,684 | 14,397 |
Basic net income (loss) per share (in Dollars per share) | $0.41 | ($0.14) |
Diluted net inome (loss) per share: | ||
Weighted average shares outstanding - basic | 14,684 | 14,397 |
Effect of potentially dilutive securities | 179 | |
Weighted average shares outstanding - diluted | 14,863 | 14,397 |
Diluted net income (loss) per share (in Dollars per share) | $0.41 | ($0.14) |
Note_11_Employee_Benefit_Plans1
Note 11 - Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Note 11 - Employee Benefit Plans (Details) [Line Items] | ||
Number of Days | 30 days | |
Years of Age | 18 years | |
Defined Contribution Plans Vesting Period | 4 years | |
Defined Contribution Plan, Employer Discretionary Contribution Amount (in Dollars) | $0 | $21,000 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% | |
Minimum [Member] | ||
Note 11 - Employee Benefit Plans (Details) [Line Items] | ||
Defined Contribution Plan Employee Contribution | 1.00% | |
Maximum [Member] | ||
Note 11 - Employee Benefit Plans (Details) [Line Items] | ||
Defined Contribution Plan Employee Contribution | 20.00% |
Note_12_Commitments_and_Contin2
Note 12 - Commitments and Contingencies (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Mar. 10, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||
Operating Leases, Future Minimum Payments Due | $408,000 | ||
Operating Leases, Rent Expense | 300,000 | 300,000 | |
Sale of Stock, Number of Shares Issued in Transaction (in Shares) | 6,250,000 | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners, Increase (Decrease) | 25.00% | ||
Deferred Compensation Liability, Current and Noncurrent | 0 | 0 | |
Legal Contingency, Damage Seeking, Value | $17,000,000 | ||
Previous Ownership Percentage [Member] | |||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 9.00% | ||
New Ownership Percentage [Member] | |||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% |
Note_12_Commitments_and_Contin3
Note 12 - Commitments and Contingencies (Details) - Rental Commitments Under Non-Cancelable Operating Leases (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Rental Commitments Under Non-Cancelable Operating Leases [Abstract] | |
2016 | $256 |
2017 | 152 |
Total minimum lease payments | $408 |
Note_13_Legal_Details
Note 13 - Legal (Details) (USD $) | 0 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Apr. 26, 2014 | Feb. 04, 2014 | 30-May-14 | 30-May-14 | 16-May-14 | 15-May-14 | 30-May-14 | 16-May-14 | Jul. 31, 2014 | Feb. 29, 2012 | Sep. 02, 2011 | 13-May-11 | Apr. 16, 2013 |
Note 13 - Legal (Details) [Line Items] | |||||||||||||
Loss Contingency, Damages Sought, Value | $1.20 | ||||||||||||
Loss Contingency Amount Claimed for Recovery of Damages | 4.9 | ||||||||||||
Former Gain Contingency, Recognized in Current Period | 7.6 | ||||||||||||
Number of Patents Relating to Power Technology | 5 | ||||||||||||
Number of Comaro Patents | 5 | ||||||||||||
Additional Damages Sought [Member] | |||||||||||||
Note 13 - Legal (Details) [Line Items] | |||||||||||||
Gain Contingency, Unrecorded Amount | 15 | ||||||||||||
Including Accrued Liabilities [Member] | Chicony Power Technology Company Ltd [Member] | |||||||||||||
Note 13 - Legal (Details) [Line Items] | |||||||||||||
Litigation Settlement, Amount | 10.8 | ||||||||||||
Chicony Power Technology Company Ltd [Member] | |||||||||||||
Note 13 - Legal (Details) [Line Items] | |||||||||||||
Litigation Settlement, Amount | 9.7 | 7.6 | |||||||||||
Previously Accrued Seeking Payments | 1.1 | 1.1 | 1.1 | 1.1 | |||||||||
Proceeds from Legal Settlements | $3.60 | $6.50 | $4 | $6.50 | $4 | ||||||||
Number of Units under Indemnity Agreement | 500,000 |
Schedule_II_Valuation_and_Qual2
Schedule II - Valuation and Qualifying Accounts (Details) - Valuation and Qualifying Accounts (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Allowance for Doubtful Accounts [Member] | ||
Valuation Allowance [Line Items] | ||
Balance at Beginning of Year | $40 | $24 |
Charged to Cost and Expense (Recovery) | 16 | |
Other Changes Add (Deduct) | -40 | |
Balance at End of Year | 40 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||
Valuation Allowance [Line Items] | ||
Balance at Beginning of Year | 16,675 | 17,749 |
Other Changes Add (Deduct) | -569 | -1,074 |
Balance at End of Year | 16,106 | 16,675 |
Inventory Valuation Reserve [Member] | ||
Valuation Allowance [Line Items] | ||
Balance at Beginning of Year | 631 | |
Other Changes Add (Deduct) | ($631) |