Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2016 | Apr. 15, 2016 | Jul. 31, 2015 | |
Entity Registrant Name | Comarco Inc | ||
Entity Central Index Key | 22,252 | ||
Trading Symbol | cmro | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 14,644,165 | ||
Entity Public Float | $ 23 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 31, 2016 | Jan. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 680,000 | $ 2,140,000 |
Accounts receivable | 122,000 | 122,000 |
Other current assets | 41,000 | 7,000 |
Total current assets | 843,000 | 2,269,000 |
Property and equipment, net | 2,000 | 8,000 |
Restricted cash | 77,000 | 5,000 |
Total assets | 922,000 | 2,282,000 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Accounts payable | 883,000 | 737,000 |
Accrued liabilities | $ 687,000 | 848,000 |
Income taxes payable | 40,000 | |
Total current liabilities | $ 1,570,000 | 1,625,000 |
Total liabilities | 1,570,000 | 1,625,000 |
Stockholders' (Deficit) Equity: | ||
Preferred stock, no par value, 10,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.10 par value, 50,625,000 shares authorized; 14,644,165 and 14,684,165 shares issued and outstanding at January 31, 2016 and 2015, respectively | 1,464,000 | 1,468,000 |
Additional paid-in capital | 18,367,000 | 18,322,000 |
Accumulated deficit | (20,479,000) | (19,133,000) |
Total stockholders' equity (deficit) | (648,000) | 657,000 |
Total liabilities and stockholders' equity (deficit) | $ 922,000 | $ 2,282,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jan. 31, 2016 | Jan. 31, 2015 |
Preferred Stock, Par Value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock Shares Authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 50,625,000 | 50,625,000 |
Common stock, shares issued (in shares) | 14,644,165 | 14,684,165 |
Common stock, shares outstanding (in shares) | 14,644,165 | 14,684,165 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Revenue | ||
Cost of revenue | $ (1,099,000) | |
Gross profit | 1,099,000 | |
Selling, general and administrative expenses | $ 1,116,000 | 1,232,000 |
Engineering and support expenses | 260,000 | 309,000 |
1,376,000 | 1,541,000 | |
Operating loss | $ (1,376,000) | (442,000) |
Interest expense, net | 380,000 | |
Change in fair value of derivative liabilities | (226,000) | |
Other income, net - litigation settlement | $ (30,000) | (6,678,000) |
Income (loss) from operations before income taxes | (1,346,000) | 6,082,000 |
Income tax expense | 4,000 | 42,000 |
Net income (loss) | $ (1,346,000) | $ 6,040,000 |
Basic loss per share: (in dollars per share) | $ (0.09) | $ 0.41 |
Diluted loss per share: (in dollars per share) | $ (0.09) | $ 0.41 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 14,652 | 14,684 |
Diluted (in shares) | 14,652 | 14,863 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at January 31, 2014 at Jan. 31, 2014 | $ 1,468 | $ 15,980 | $ (25,173) | $ (7,725) |
Net Income (Loss) Attributable to Parent | 6,040 | 6,040 | ||
Issuance of Broadwood replacement warrants | 2,294 | 2,294 | ||
Stock based compensation expense | 48 | 48 | ||
Balance at January 31, 2015 at Jan. 31, 2015 | 1,468 | 18,322 | (19,133) | 657 |
Net Income (Loss) Attributable to Parent | (1,346) | (1,346) | ||
Stock based compensation expense | 41 | 41 | ||
Balance at January 31, 2015 at Jan. 31, 2016 | 1,464 | 18,367 | $ (20,479) | $ (648) |
Forfeiture of restricted stock | $ (4) | $ 4 |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Deficit) (Parentheticals) - shares | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Common Stock [Member] | |||
Common stock, shares outstanding (in shares) | 14,644,165 | 14,684,165 | 14,684,165 |
Common stock, shares outstanding (in shares) | 14,644,165 | 14,684,165 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (1,346,000) | $ 6,040,000 |
Adjustments to reconcile net income (loss) from continuing operations to net cash used in operating activities: | ||
Depreciation and amortization | $ 6,000 | 6,000 |
Amortization of loan discount | 333,000 | |
Stock-based compensation expense | $ 41,000 | 48,000 |
Provision for doubtful accounts receivable | 6,000 | |
Change in fair value of derivative liabilities | (226,000) | |
Supplier settlement | (1,099,000) | |
Changes in operating assets and liabilities | ||
Other assets | $ (34,000) | 10,000 |
Increase (Decrease) in Accounts Payable | 146,000 | (2,527,000) |
Accrued liabilities | (161,000) | (164,000) |
Income taxes payable | (40,000) | 40,000 |
Net cash provided by operating activities | $ (1,388,000) | $ 2,467,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | ||
Change in restricted cash | $ (72,000) | $ 77,000 |
Net cash provided by investing activites | $ (72,000) | 77,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Loan repayment | (1,500,000) | |
Net cash (used in) provided by financing activities | (1,500,000) | |
Net increase in cash and cash equivalents | $ (1,460,000) | 1,044,000 |
Cash and cash equivalents, beginning of period | 2,140,000 | 1,096,000 |
Cash and cash equivalents, end of period | $ 680,000 | 2,140,000 |
Noncash investing and financing activities: | ||
Issuance of Broadwood replacement warrants | 2,294,000 | |
Supplementary disclosures of cash flow information: | ||
Cash paid for interest | 68,000 | |
Cash paid for income taxes, net of refunds | $ 2,000 | $ 2,000 |
Note 1 - Organization
Note 1 - Organization | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
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, 2016 | |
Notes to Financial Statements | |
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. The accompanying financial statements do not include any adjustments relating to this uncertainty. Three of our recent litigation matters have concluded. On March 10, 2014, we filed a lawsuit in federal court 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 of 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 by us in the Orange County Superior Court on June 5, 2014 (the “State Court Action”). On December 4, 2014, the Superior Court ordered the State Court Action into arbitration and the arbitration hearing was set for April 2016. On March 26, 2016, we entered into a confidential settlement and license agreement with Targus that resolves all claims arising from our litigation with Targus in exchange for a confidential lump sum settlement payment from Targus to us plus per-unit royalty payments to us if Targus exceeds the limit on licensed products that Targus may sell to OEMs under the settlement agreement. 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 retained $6.5 million, after distributing $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 Kensington 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 established a forward royalty program and dismissed all claims between the two parties arising from this matter. 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 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. We have and will continue to analyze 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 our patent portfolio and past, present, and future infringement claims. However, there can be no assurances that we will be successful in identifying and/or implementing any of these alternatives, or if implemented, that any of these alternatives will successfully preserve or increase shareholder value. 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 producing innovative charging solutions for battery powered devices. There are no assurances that any of these potential opportunities or activities will occur or be successful. We had negative working capital of approximately $0.7 million as of January 31, 2016, which includes liabilities of $0.4 million related to the remaining balance owed to our former counsel Pillsbury Winthrop Shaw Pittman, LLP (“Pillsbury”) and $0.6 million owed to Zheng Ge Electrical Co., Ltd. (“Zheng Ge”) for contract manufacturing services for our former Bronx product, which was subsequently subject to recall (see Note 5). The $0.4 million balance to Pillsbury will be paid, if at all, in the event we obtain any monetary recovery, whether through settlement, judgment or otherwise, from or as a result of any of our current or future lawsuits related to our intellectual property (see Note 5). Regarding the $0.6 million liability to Zheng Ge, we dispute our obligation to pay this amount based on the recall of the Bronx product. It is possible that an ultimate resolution with Zheng Ge may include a net settlement, although we currently have no legal right to offset the $0.6 million owed by us. Because of the contingent nature of our liability to Pillsbury and that we dispute our obligation to pay Zheng Ge, we believe that our working capital will allow us to discharge non-contingent and non-disputed liabilities and commitments in the normal course of business over the next twelve months. We are currently generating no 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/or obtain borrowings or raise capital to meet our future liquidity needs. 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 allowance for doubtful accounts, valuation allowances for deferred tax assets and determination of stock-based compensation. 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 account and represent a $77,000 letter of credit that serves as the security deposit for our corporate office lease. Accounts Receivable due from Suppliers Previously, when we were engaged in our traditional operations of producing charging solutions for battery powered devices, we were often able to source components locally that we later sold to our contract manufacturers, who built the finished goods, and other suppliers. This was especially true 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. As of January 31,2016, the entire accounts receivable due from suppliers was from Zheng Ge, a tip supplier for our Bronx product, which was subject to a recall. 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. As of January 31, 2016, we owe Zheng Ge $0.6 million for contract manufacturing services. Although we currently have no legal right to offset the $0.6 million owed by us, it is possible that an ultimate resolution with Zheng Ge may include a net settlement. Accordingly, we did not provide an allowance for doubtful accounts against the Zheng Ge receivable. 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 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, 2016 and 2015. 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. Income Taxes The Company accounts for income taxes under the asset and liability method. whereby deferred tax assets and liabilities are recognized for the future lax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences. the period in which they are expected to be recovered, and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is "more likely than not" that some or all of the deferred tax assets will not be realized. Management has determined that a full valuation allowance against the Company's net deferred tax assets is appropriate. 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 2016, we recorded a net loss of approximately $1.3 million and recorded income tax expense of $4,000, which represents the minimum tax due in the state of California. The net deferred tax asset of $16.7 million at January 31, 2016, $1.1 million of which relates to net operating losses created in fiscal 2016, continues to be fully reserved. 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. Warranty Costs We provide limited warranties for products previously sold by us 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. 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 8). 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 2016 and 2015 was $0.1 million, respectively. The legal expense included in research and development expenses during fiscal 2016 and 2015 was $0.2 million and $0.3 million, respectively. The total legal expense included during fiscal 2016 and 2015 was $0.3 million and $0.4 million, respectively. Subsequent Events Management has evaluated events subsequent to January 31, 2016 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 - Supplier Concentration
Note 3 - Supplier Concentration | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 3. Supplier Concentration The suppliers comprising 10 percent or more of our gross accounts receivable due from suppliers at either January 31, 2016 or 2015 are listed below (in thousands, except percentages). Years Ended January 31, 2016 2015 Total gross accounts receivable due from suppliers $ 122 100 % $ 122 100 % Supplier concentration: Zheng Ge Electrical Co., Ltd. $ 122 100 % $ 122 100 % $ 122 100 % $ 122 100 % 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, 2016 or 2015 are listed below (in thousands, except percentages). Years Ended January 31, 2016 2015 Total gross accounts payable $ 883 100 % $ 737 100 % Supplier concentration: Pillsbury Winthrop Shaw Pittman, LLP 432 49 % 432 59 % $ 432 49 % $ 432 59 % 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 10 and 11). 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, i n 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, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4 . Property and Equipment Property and equipment consist of the following (in thousands): January 31, January 31, 2016 2015 Office furnishing and fixtures $ 605 $ 605 Equipment 973 973 Purchased software 66 66 1,644 1,644 Less: Accumulated depreciation and amortization (1,642 ) (1,636 ) $ 2 $ 8 Depreciation and amortization expense for fiscal 2016 and fiscal 2015 totaled $6,000, respectively. |
Note 5 - Accrued Liabilities
Note 5 - Accrued Liabilities | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 5 . Accrued Liabilities Accrued liabilities consist of the following (in thousands): January 31, January 31, 2016 2015 Uninvoiced materials and services received $ 331 $ 331 Accrued legal and professional fees 169 138 Accrued payroll and related expenses 33 38 Accrued warranty 4 4 Other 150 337 $ 687 $ 848 As of January 31, 2016, 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”). As discussed in Notes 2 and 3 above, we dispute our obligation to pay Zheng Ge due to the recall of the Bronx product. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. Income Taxes Income tax expense on a consolidated basis consists of the following amounts (in thousands): Years Ended January 31, 201 6 201 5 Federal: Current $ — $ — Deferred — — State: Current 4 42 Deferred — — Foreign: Current — — $ 4 $ 42 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, 201 6 201 5 Amount Percent Pretax Income Amount Percent Pretax Income (Loss)/Income from operations before income taxes $ (1,346 ) 100 % $ 6,082 100 % Computed “expected” income tax benefit on loss from operations before income taxes $ (538 ) 34 % $ 2,068 34 % State tax, net of federal benefit (73 ) 6 % 387 6 % Tax credits — 0 % — 0 % Change in valuation allowance 626 (39 )% (569 ) (9 )% Permanent differences 1 2 % 118 ) 2 % Return to provision adjustments — 0 % — 0 % Change in state tax rate — 0 % (1,978 ) (32 )% Other, net (12 ) (1 )% 16 0 % Income tax expense $ 4 0 % $ 42 1 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at January 31, 2016 and 2015 are as follows (in thousands): January 31, 201 6 201 5 Deferred tax assets: Property and equipment, principally due to differing depreciation methods 153 161 Accruals and reserves 145 206 Net research and manufacturer investment credit carryforwards 2,325 2,325 Net operating losses 13,832 13,151 AMT credit carryforwards 136 136 Stock based compensation 140 127 Other — — Total gross deferred tax assets 16,731 16,106 Less: valuation allowance (16,731 ) (16,106 ) 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 $35.8 million for federal and $28.7 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, 2016, an increase 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, 2015 $ 777 Additions based on tax positions related to the current year — Reductions due to lapses of statute of limitations 10 Tax positions of prior years — Balance at January 31, 2016 $ 767 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 7 - Stock Compensation
Note 7 - Stock Compensation | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 7. 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 2016, 350,000 stock options were granted and no restricted stock units were granted. The fair value of the 350,000 options granted under our stock option plans during the year ended January 31, 2016 was estimated on the date of grant using the following weighted average assumptions: Year Ended January 31, 2016 Weighted average risk-free interest rate 2 % Expected life (in years) 10 Expected stock volatility 152 % Dividend yield - Expected forfeitures - Estimated expected forfeitures is 0 as remaining stock options were granted to our CEO and board of directors and we do not expect future forfeitures. During fiscal 2015, no restricted stock shares or stock options were granted. 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 is summarized in the table below (in thousands except per share amounts): Years Ended January 31, 2016 2015 Stock-based compensation expense $ 41 $ 48 Impact on basic and diluted earnings per share $ (0.00 ) $ (0.00 ) The total compensation cost related to non-vested awards not yet recognized is approximately $17,000, which will be expensed over a weighted average remaining life of 5 months. Transactions and other information related to restricted stock granted under these plans for the year ended January 31, 2016 and 2015 are summarized below: Outstanding Restricted Stock Number of Shares Weighted-Ave Exercise Balance, January 31, 2014 420,000 $ 0.18 Restricted stock granted - - Restricted stock forfeited (30,000 ) 0.18 Balance, January 31, 2015 390,000 $ 0.18 Restricted stock granted - - Restricted stock forfeited (40,000 ) 0.18 Restricted stock vested (350,000 ) 0.18 Balance, January 31, 2016 - $ 0.18 At January 31, 2016 and 2015, the stock awards outstanding had no intrinsic value based upon closing market price of $0.11 and $0.14 per share, respectively. The following table summarizes information about stock awards outstanding at January 31, 2016: Awards Outstanding Options Exercisable Range of Exercise/Grant Prices Number Outstanding Weighted-Ave Remaining Weighted-Ave Exercise/Grant Price Number Exercisable Weighted-Ave Exercise Price $ 0.14 250,000 9.38 $ 0.14 0 $ 0.14 $ 0.16 100,000 9.34 $ 0.16 0 $ 0.16 $ 0.40 465,000 6.70 $ 0.40 465,000 $ 0.40 $ 1.09 100,000 2.78 $ 1.09 60,000 $ 1.09 $ 4.53 15,000 2.08 $ 4.53 15,000 $ 4.53 $ 10.43 20,000 0.38 $ 10.43 20,000 $ 10.43 950,000 0.66 560,000 0.94 Transactions and other information related to stock options granted under these plans for the years ended January 31, 2016 and 2015 are summarized below: Outstanding Options Number of Shares Weighted-Ave. 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 Options granted 350,000 0.15 Options canceled or expired - - Options exercise - - Balance, January 31, 2016 950,000 $ 0.66 Stock Options Exercisable at January 31, 2016 560,000 $ 0.94 There were 560,000 stock options exercisable at January 31, 2016 at a weighted-average exercise price of $0.94. Shares available under the plans for future grants at January 31, 2016 were 129,724. |
Note 8 - Net Income (Loss) Per
Note 8 - Net Income (Loss) Per Share | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8 . Net (Loss) Income 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, 2016, basic and diluted loss per share were the same because the inclusion of 647,000, as of January 31, 2016, 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 2016 2015 Net (loss) income $ (1,346 ) $ 6,040 Basic net income (loss) per share: Weighted-average shares outstanding-Basic 14,652 14,684 Basic net (loss) income per share $ (0.09 ) $ 0.41 Diluted net (loss) inome per share: Weighted average shares outstanding - basic 14,652 14,684 Effect of potentially dilutive securities - 179 Weighted average shares outstanding - diluted 14,652 14,863 Diluted net (loss) income per share $ (0.09 ) $ 0.41 |
Note 9 - Employee Benefit Plans
Note 9 - Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 9 . 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, 2016 and 2015 were approximately $0. 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 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 10 . Commitments and Contingencies Rental commitments under non-cancelable operating leases, principally on our office space, are payable as follows (in thousands): Operating Leases Fiscal Year: 2017 152 Total minimum lease payments $ 152 Rental expense for each of the years ended January 31, 2016 and 2015 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. 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, 2016 and 2015, 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. 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. 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. 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 11 - Legal
Note 11 - Legal | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 11. 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, 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. |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 12 . Subsequent Events 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. On March 26, 2016, we entered into a confidential settlement and license agreement with Targus that resolves all claims arising from our litigation with Targus in exchange for a confidential lump sum settlement payment from Targus to us plus per-unit royalty payments to us if Targus exceeds the limit on licensed products that Targus may sell to OEMs under the settlement agreement. In February 2016, we moved our headquarters to Laguna Niguel and entered into new lease agreement that expires in August 2016. In addition, we are subletting the office space that was our previous headquarters. The lease for the former headquarter facility and the sublease expire on August 31, 2016. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | COMARCO, INC. AND SUBSIDIARY SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Years Ended January 31, 2016 and 2015 (In thousands) Balance at Beginning of Year Charged to Cost and Expense (Recovery) Deductions Other Changes Add (Deduct) Balance at Year Allowance for doubtful accounts and provision for unbilled receivables (deducted from accounts receivable): Year ended January 31, 2016 $ — $ — $ — $ — $ — Year ended January 31, 2015 $ 40 $ — $ — $ (40 ) $ — Allowance for deferred tax assets: Year ended January 31, 2016 $ 16,106 $ — $ — $ 625 $ 16,731 Year ended January 31, 2015 $ 16,675 $ — $ — $ (569 ) $ 16,106 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
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. |
Going Concern [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. The accompanying financial statements do not include any adjustments relating to this uncertainty. Three of our recent litigation matters have concluded. On March 10, 2014, we filed a lawsuit in federal court 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 of 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 by us in the Orange County Superior Court on June 5, 2014 (the “State Court Action”). On December 4, 2014, the Superior Court ordered the State Court Action into arbitration and the arbitration hearing was set for April 2016. On March 26, 2016, we entered into a confidential settlement and license agreement with Targus that resolves all claims arising from our litigation with Targus in exchange for a confidential lump sum settlement payment from Targus to us plus per-unit royalty payments to us if Targus exceeds the limit on licensed products that Targus may sell to OEMs under the settlement agreement. 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 retained $6.5 million, after distributing $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 Kensington 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 established a forward royalty program and dismissed all claims between the two parties arising from this matter. 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 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. We have and will continue to analyze 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 our patent portfolio and past, present, and future infringement claims. However, there can be no assurances that we will be successful in identifying and/or implementing any of these alternatives, or if implemented, that any of these alternatives will successfully preserve or increase shareholder value. 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 producing innovative charging solutions for battery powered devices. There are no assurances that any of these potential opportunities or activities will occur or be successful. We had negative working capital of approximately $0.7 million as of January 31, 2016, which includes liabilities of $0.4 million related to the remaining balance owed to our former counsel Pillsbury Winthrop Shaw Pittman, LLP (“Pillsbury”) and $0.6 million owed to Zheng Ge Electrical Co., Ltd. (“Zheng Ge”) for contract manufacturing services for our former Bronx product, which was subsequently subject to recall (see Note 5). The $0.4 million balance to Pillsbury will be paid, if at all, in the event we obtain any monetary recovery, whether through settlement, judgment or otherwise, from or as a result of any of our current or future lawsuits related to our intellectual property (see Note 5). Regarding the $0.6 million liability to Zheng Ge, we dispute our obligation to pay this amount based on the recall of the Bronx product. It is possible that an ultimate resolution with Zheng Ge may include a net settlement, although we currently have no legal right to offset the $0.6 million owed by us. Because of the contingent nature of our liability to Pillsbury and that we dispute our obligation to pay Zheng Ge, we believe that our working capital will allow us to discharge non-contingent and non-disputed liabilities and commitments in the normal course of business over the next twelve months. We are currently generating no 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/or obtain borrowings or raise capital to meet our future liquidity needs. |
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 allowance for doubtful accounts, valuation allowances for deferred tax assets and determination of stock-based compensation. |
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 account and represent a $77,000 letter of credit that serves as the security deposit for our corporate office lease. |
Accounts Receivable from Suppliers [Policy Text Block] | Accounts Receivable due from Suppliers Previously, when we were engaged in our traditional operations of producing charging solutions for battery powered devices, we were often able to source components locally that we later sold to our contract manufacturers, who built the finished goods, and other suppliers. This was especially true 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. As of January 31,2016, the entire accounts receivable due from suppliers was from Zheng Ge, a tip supplier for our Bronx product, which was subject to a recall. 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. As of January 31, 2016, we owe Zheng Ge $0.6 million for contract manufacturing services. Although we currently have no legal right to offset the $0.6 million owed by us, it is possible that an ultimate resolution with Zheng Ge may include a net settlement. Accordingly, we did not provide an allowance for doubtful accounts against the Zheng Ge receivable. |
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 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, 2016 and 2015. 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. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes under the asset and liability method. whereby deferred tax assets and liabilities are recognized for the future lax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences. the period in which they are expected to be recovered, and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is "more likely than not" that some or all of the deferred tax assets will not be realized. Management has determined that a full valuation allowance against the Company's net deferred tax assets is appropriate. 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 2016, we recorded a net loss of approximately $1.3 million and recorded income tax expense of $4,000, which represents the minimum tax due in the state of California. The net deferred tax asset of $16.7 million at January 31, 2016, $1.1 million of which relates to net operating losses created in fiscal 2016, continues to be fully reserved. 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. |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Costs We provide limited warranties for products previously sold by us 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. |
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 8). |
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 2016 and 2015 was $0.1 million, respectively. The legal expense included in research and development expenses during fiscal 2016 and 2015 was $0.2 million and $0.3 million, respectively. The total legal expense included during fiscal 2016 and 2015 was $0.3 million and $0.4 million, respectively. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Management has evaluated events subsequent to January 31, 2016 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 - Supplier Concentrati22
Note 3 - Supplier Concentration (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Accounts Receivable by Major Suppliers by Reporting Segments [Table Text Block] | Years Ended January 31, 2016 2015 Total gross accounts receivable due from suppliers $ 122 100 % $ 122 100 % Supplier concentration: Zheng Ge Electrical Co., Ltd. $ 122 100 % $ 122 100 % $ 122 100 % $ 122 100 % |
Equity Method Investments [Table Text Block] | Years Ended January 31, 2016 2015 Total gross accounts payable $ 883 100 % $ 737 100 % Supplier concentration: Pillsbury Winthrop Shaw Pittman, LLP 432 49 % 432 59 % $ 432 49 % $ 432 59 % |
Note 4 - Property and Equipme23
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | January 31, January 31, 2016 2015 Office furnishing and fixtures $ 605 $ 605 Equipment 973 973 Purchased software 66 66 1,644 1,644 Less: Accumulated depreciation and amortization (1,642 ) (1,636 ) $ 2 $ 8 |
Note 5 - Accrued Liabilities (T
Note 5 - Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | January 31, January 31, 2016 2015 Uninvoiced materials and services received $ 331 $ 331 Accrued legal and professional fees 169 138 Accrued payroll and related expenses 33 38 Accrued warranty 4 4 Other 150 337 $ 687 $ 848 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years Ended January 31, 201 6 201 5 Federal: Current $ — $ — Deferred — — State: Current 4 42 Deferred — — Foreign: Current — — $ 4 $ 42 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years Ended January 31, 201 6 201 5 Amount Percent Pretax Income Amount Percent Pretax Income (Loss)/Income from operations before income taxes $ (1,346 ) 100 % $ 6,082 100 % Computed “expected” income tax benefit on loss from operations before income taxes $ (538 ) 34 % $ 2,068 34 % State tax, net of federal benefit (73 ) 6 % 387 6 % Tax credits — 0 % — 0 % Change in valuation allowance 626 (39 )% (569 ) (9 )% Permanent differences 1 2 % 118 ) 2 % Return to provision adjustments — 0 % — 0 % Change in state tax rate — 0 % (1,978 ) (32 )% Other, net (12 ) (1 )% 16 0 % Income tax expense $ 4 0 % $ 42 1 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | January 31, 201 6 201 5 Deferred tax assets: Property and equipment, principally due to differing depreciation methods 153 161 Accruals and reserves 145 206 Net research and manufacturer investment credit carryforwards 2,325 2,325 Net operating losses 13,832 13,151 AMT credit carryforwards 136 136 Stock based compensation 140 127 Other — — Total gross deferred tax assets 16,731 16,106 Less: valuation allowance (16,731 ) (16,106 ) Net deferred tax assets $ — $ — |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Unrecognized Tax Benefits Balance at February 1, 2015 $ 777 Additions based on tax positions related to the current year — Reductions due to lapses of statute of limitations 10 Tax positions of prior years — Balance at January 31, 2016 $ 767 |
Note 7 - Stock Compensation (Ta
Note 7 - Stock Compensation (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended January 31, 2016 Weighted average risk-free interest rate 2 % Expected life (in years) 10 Expected stock volatility 152 % Dividend yield - Expected forfeitures - |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Years Ended January 31, 2016 2015 Stock-based compensation expense $ 41 $ 48 Impact on basic and diluted earnings per share $ (0.00 ) $ (0.00 ) |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Outstanding Restricted Stock Number of Shares Weighted-Ave Exercise Balance, January 31, 2014 420,000 $ 0.18 Restricted stock granted - - Restricted stock forfeited (30,000 ) 0.18 Balance, January 31, 2015 390,000 $ 0.18 Restricted stock granted - - Restricted stock forfeited (40,000 ) 0.18 Restricted stock vested (350,000 ) 0.18 Balance, January 31, 2016 - $ 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 Range of Exercise/Grant Prices Number Outstanding Weighted-Ave Remaining Weighted-Ave Exercise/Grant Price Number Exercisable Weighted-Ave Exercise Price $ 0.14 250,000 9.38 $ 0.14 0 $ 0.14 $ 0.16 100,000 9.34 $ 0.16 0 $ 0.16 $ 0.40 465,000 6.70 $ 0.40 465,000 $ 0.40 $ 1.09 100,000 2.78 $ 1.09 60,000 $ 1.09 $ 4.53 15,000 2.08 $ 4.53 15,000 $ 4.53 $ 10.43 20,000 0.38 $ 10.43 20,000 $ 10.43 950,000 0.66 560,000 0.94 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Outstanding Options Number of Shares Weighted-Ave. 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 Options granted 350,000 0.15 Options canceled or expired - - Options exercise - - Balance, January 31, 2016 950,000 $ 0.66 Stock Options Exercisable at January 31, 2016 560,000 $ 0.94 |
Note 8 - Net Income (Loss) Pe27
Note 8 - Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended 2016 2015 Net (loss) income $ (1,346 ) $ 6,040 Basic net income (loss) per share: Weighted-average shares outstanding-Basic 14,652 14,684 Basic net (loss) income per share $ (0.09 ) $ 0.41 Diluted net (loss) inome per share: Weighted average shares outstanding - basic 14,652 14,684 Effect of potentially dilutive securities - 179 Weighted average shares outstanding - diluted 14,652 14,863 Diluted net (loss) income per share $ (0.09 ) $ 0.41 |
Note 10 - Commitments and Con28
Note 10 - Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating Leases Fiscal Year: 2017 152 Total minimum lease payments $ 152 |
Schedule II - Valuation and Q29
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
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 Year Allowance for doubtful accounts and provision for unbilled receivables (deducted from accounts receivable): Year ended January 31, 2016 $ — $ — $ — $ — $ — Year ended January 31, 2015 $ 40 $ — $ — $ (40 ) $ — Allowance for deferred tax assets: Year ended January 31, 2016 $ 16,106 $ — $ — $ 625 $ 16,731 Year ended January 31, 2015 $ 16,675 $ — $ — $ (569 ) $ 16,106 |
Note 2 - Summary of Significa30
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | May. 30, 2014 | May. 16, 2014 | May. 15, 2014 | Feb. 04, 2014 | May. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 |
Chicony Power Technology Company Ltd [Member] | Net of Attorneys Fees [Member] | |||||||
Proceeds from Legal Settlements | $ 6,500,000 | ||||||
Chicony Power Technology Company Ltd [Member] | Cost of Sales [Member] | |||||||
Increase (Decrease) in Accounts Payable | 1,100,000 | ||||||
Chicony Power Technology Company Ltd [Member] | |||||||
Litigation Settlement, Amount | $ 7,600,000 | $ 7,600,000 | $ 9,700,000 | ||||
Proceeds from Legal Settlements | $ 3,600,000 | $ 4,000,000 | |||||
Professional Fees | $ 1,100,000 | ||||||
Pillsbury Winthrop Shaw Pittman L L P [Member] | Litigation Reserve [Member | |||||||
Liabilities, Current | $ 400,000 | ||||||
Zheng Ge Electrical Company Ltd [Member] | Litigation Reserve [Member | |||||||
Liabilities, Current | 600,000 | ||||||
Selling, General and Administrative Expenses [Member] | |||||||
Legal Fees | 100,000 | $ 100,000 | |||||
Research and Development Expense [Member] | |||||||
Legal Fees | 200,000 | 300,000 | |||||
Letter of Credit [Member] | |||||||
Increase (Decrease) in Restricted Cash | $ 77,000 | ||||||
Office Equipment [Member] | Minimum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||
Office Equipment [Member] | Maximum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||
Equipment and Purchased Software [Member] | Minimum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||
Equipment and Purchased Software [Member] | Maximum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||
Leasehold Improvements [Member] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||
California Franchise Tax Board [Member] | |||||||
Income Tax Expense (Benefit) | 42,000 | ||||||
Increase (Decrease) in Accounts Payable | $ 146,000 | (2,527,000) | |||||
Negative Working Capital | 700,000 | ||||||
Liabilities, Current | 1,570,000 | 1,625,000 | |||||
Increase (Decrease) in Restricted Cash | 72,000 | (77,000) | |||||
Net Income (Loss) Attributable to Parent | (1,346,000) | 6,040,000 | |||||
Income Tax Expense (Benefit) | 4,000 | 42,000 | |||||
Deferred Tax Assets, Gross | 16,731,000 | 16,106,000 | |||||
Legal Fees | $ 300,000 | $ 400,000 |
Note 3 - Supplier Concentrati31
Note 3 - Supplier Concentration (Details Textual) - Pillsbury Winthrop Shaw Pittman L L P [Member] $ in Millions | May. 28, 2014USD ($) |
Lump Sum Legal Fee | $ 1.5 |
Accrued Professional Fees | $ 0.4 |
Interest Rate for Outstanding Legal Fees Payable Solely with Settlement | 20.00% |
Note 3 - Supplier Concentrati32
Note 3 - Supplier Concentration Risk Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Supplier Concentration Risk [Member] | Zheng Ge Electrical Company Ltd [Member] | Account Receivable from Suppliers [Member] | ||
Accounts receivable | $ 122,000 | $ 122,000 |
Concentration percentage, accounts receivables | 100.00% | 100.00% |
Supplier Concentration Risk [Member] | Account Receivable from Suppliers [Member] | ||
Accounts receivable | $ 122,000 | $ 122,000 |
Concentration percentage, accounts receivables | 100.00% | 100.00% |
Supplier Concentration Risk [Member] | ||
Accounts receivable | $ 122,000 | $ 122,000 |
Concentration percentage, accounts receivables | 100.00% | 100.00% |
Accounts receivable | $ 122,000 | $ 122,000 |
Note 3 - Supplier Concentrati33
Note 3 - Supplier Concentration Risk Accounts Payable (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Supplier Concentration Risk [Member] | Accounts Payable [Member] | Pillsbury Winthrop Shaw Pittman L L P [Member] | ||
Accounts payable | $ 432,000 | $ 432,000 |
Concentration percentage, accounts receivables | 49.00% | 59.00% |
Supplier Concentration Risk [Member] | Accounts Payable [Member] | ||
Accounts payable | $ 432,000 | $ 432,000 |
Concentration percentage, accounts receivables | 49.00% | 59.00% |
Supplier Concentration Risk [Member] | ||
Accounts payable | $ 883,000 | $ 737,000 |
Concentration percentage, accounts receivables | 100.00% | 100.00% |
Accounts payable | $ 883,000 | $ 737,000 |
Note 4 - Property and Equipme34
Note 4 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Depreciation | $ 6,000 | $ 6,000 |
Note 4 - Compenents of Property
Note 4 - Compenents of Property, Plant and Equipment (Details) - USD ($) | Jan. 31, 2016 | Jan. 31, 2015 |
Office Equipment [Member] | ||
Property, plant and equipment, gross | $ 605,000 | $ 605,000 |
Equipment [Member] | ||
Property, plant and equipment, gross | 973,000 | 973,000 |
Software and Software Development Costs [Member] | ||
Property, plant and equipment, gross | 66,000 | 66,000 |
Property, plant and equipment, gross | 1,644,000 | 1,644,000 |
Less: Accumulated depreciation and amortization | (1,642,000) | (1,636,000) |
$ 2,000 | $ 8,000 |
Note 5 - Accrued Liabilities (D
Note 5 - Accrued Liabilities (Details Textual) - Zheng Ge Electrical Company Ltd [Member] $ in Millions | 12 Months Ended |
Jan. 31, 2015USD ($) | |
Uninvoiced Materials and Services [Member] | |
Accounts Payable and Other Accrued Liabilities | $ 0.3 |
Percent of Total Uninvoiced Materials and Services | 98.00% |
Total Uninvoiced Materials and Services [Member] | |
Accounts Payable and Other Accrued Liabilities | $ 0.3 |
Note 5 - Accrued Liabilities 37
Note 5 - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Uninvoiced Materials and Services Received [Member] | ||
Accrued liabilities | $ 331 | $ 331 |
Accrued Legal and Professional Fees [Member] | ||
Accrued liabilities | 169 | 138 |
Accrued Payroll and Related Expenses [Member] | ||
Accrued liabilities | 33 | 38 |
Accrued Warranty [Member] | ||
Accrued liabilities | 4 | 4 |
Accrued Other Liabilities [Member] | ||
Accrued liabilities | 150 | 337 |
Accrued liabilities | $ 687 | $ 848 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2016 | |
Domestic Tax Authority [Member] | ||
Tax Credit Carryforward, Amount | $ 1.7 | |
Operating Loss Carryforwards | 35.8 | |
State and Local Jurisdiction [Member] | ||
Tax Credit Carryforward, Amount | 2.1 | |
Operating Loss Carryforwards | $ 28.7 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (0.6) |
Note 6 - Income Tax Expense (De
Note 6 - Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Federal: | ||
Current | $ 0 | $ 0 |
Deferred | 0 | 0 |
State: | ||
Current | 4,000 | 42,000 |
Deferred | 0 | 0 |
Foreign: | ||
Current | 0 | 0 |
$ 4,000 | $ 42,000 |
Note 6 - Effective Income Tax R
Note 6 - Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
(Loss)/Income from operations before income taxes | $ (1,346,000) | $ 6,082,000 |
(Loss)/Income from operations before income taxes | 100.00% | 100.00% |
Computed “expected” income tax benefit on loss from operations before income taxes | $ (538,000) | $ 2,068,000 |
Computed “expected” income tax benefit on loss from operations before income taxes | 34.00% | 34.00% |
State tax, net of federal benefit | $ (73,000) | $ 387,000 |
State tax, net of federal benefit | 6.00% | 6.00% |
Tax credits | 0.00% | 0.00% |
Change in valuation allowance | $ 626,000 | $ (569,000) |
Change in valuation allowance | (39.00%) | (9.00%) |
Permanent differences | $ 1,000 | $ 118,000 |
Permanent differences | 2.00% | 2.00% |
Return to provision adjustments | 0.00% | 0.00% |
Change in state tax rate | $ (1,978,000) | |
Change in state tax rate | 0.00% | (32.00%) |
Other, net | $ (12,000) | $ 16,000 |
Other, net | (1.00%) | 0.00% |
Income tax expense | $ 4,000 | $ 42,000 |
Income tax expense | 0.00% | 1.00% |
Note 6 - Deferred Tax Assets an
Note 6 - Deferred Tax Assets and Liabilities (Details) - USD ($) | Jan. 31, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Property and equipment, principally due to differing depreciation methods | $ 153,000 | $ 161,000 |
Accruals and reserves | 145,000 | 206,000 |
Net research and manufacturer investment credit carryforwards | 2,325,000 | 2,325,000 |
Net operating losses | 13,832,000 | 13,151,000 |
AMT credit carryforwards | 136,000 | 136,000 |
Stock based compensation | $ 140,000 | $ 127,000 |
Other | ||
Total gross deferred tax assets | $ 16,731,000 | $ 16,106,000 |
Less: valuation allowance | (16,731,000) | (16,106,000) |
Net deferred tax assets | $ 0 | $ 0 |
Note 6 - Reconciliation of Unre
Note 6 - Reconciliation of Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2016USD ($) | |
Unrecognized tax benefits, balance | $ 777 |
Reductions due to lapses of statute of limitations | 10 |
Unrecognized tax benefits, balance | $ 767 |
Note 7 - Stock Compensation (De
Note 7 - Stock Compensation (Details Textual) - USD ($) | 12 Months Ended | |||||||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Jul. 31, 2011 | Jun. 30, 2008 | Dec. 31, 2005 | May. 31, 2005 | |
Prior Employee Plan [Member] | ||||||||
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% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||||||
Equity Incentive Plan 2005 [Member] | ||||||||
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% | |||||||
Equity Incentive Plan 2011 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | |||||||
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% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 950,000 | 600,000 | 638,500 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 350,000 | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Estimated Expected Forfeitures | 0 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 17,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 150 days | |||||||
Share Price | $ 0.11 | $ 0.14 | ||||||
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 | $ 0.94 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 129,724 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 |
Note 7 - Weighted Average Assum
Note 7 - Weighted Average Assumptions (Details) | 12 Months Ended |
Jan. 31, 2016 | |
Weighted average risk-free interest rate | 2.00% |
Expected life (in years) | 10 years |
Expected stock volatility | 152.00% |
Dividend yield | |
Expected forfeitures |
Note 7 - Share-Based Compensati
Note 7 - Share-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Stock-based compensation expense | $ 41 | $ 48 |
Impact on basic and diluted earnings per share (in dollars per share) | $ 0 | $ 0 |
Note 7 - Restricted Stock Activ
Note 7 - Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Restricted Stock [Member] | ||
Balance, restricted stock shares (in shares) | 390,000 | 420,000 |
Balance, restricted stock weighted-average exercise price (in dollars per share) | $ 0.18 | $ 0.18 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ||
Restricted stock granted, weighted-average exercise price (in dollars per share) | ||
Restricted stock forfeited, shares (in shares) | (40,000) | (30,000) |
Restricted stock forfeited, weighted-average exercise price (in dollars per share) | $ 0.18 | $ 0.18 |
Balance, restricted stock shares (in shares) | 390,000 | |
Balance, restricted stock weighted-average exercise price (in dollars per share) | $ 0.18 | $ 0.18 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |
Restricted stock vested, shares (in shares) | (350,000) | |
Restricted stock vested, weighted-average exercise price (in dollars per share) | $ 0.18 |
Note 7 - Stock Awards Outstandi
Note 7 - Stock Awards Outstanding (Details) | 12 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Range 1 [Member] | |
Range of Exercise/Grant Prices (in dollars per share) | $ / shares | $ 0.14 |
Number Outstanding (in shares) | shares | 250,000 |
Weighted-Ave. Remaining Contractual Life | 9 years 138 days |
Number Exercisable (in shares) | shares | 0 |
Weighted-Ave. Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 0.14 |
Range 2 [Member] | |
Range of Exercise/Grant Prices (in dollars per share) | $ / shares | $ 0.16 |
Number Outstanding (in shares) | shares | 100,000 |
Weighted-Ave. Remaining Contractual Life | 9 years 124 days |
Number Exercisable (in shares) | shares | 0 |
Weighted-Ave. Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 0.16 |
Range 3 [Member] | |
Range of Exercise/Grant Prices (in dollars per share) | $ / shares | $ 0.40 |
Number Outstanding (in shares) | shares | 465,000 |
Weighted-Ave. Remaining Contractual Life | 6 years 255 days |
Number Exercisable (in shares) | shares | 465,000 |
Weighted-Ave. Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 0.40 |
Range 4 [Member] | |
Range of Exercise/Grant Prices (in dollars per share) | $ / shares | $ 1.09 |
Number Outstanding (in shares) | shares | 100,000 |
Weighted-Ave. Remaining Contractual Life | 2 years 284 days |
Number Exercisable (in shares) | shares | 60,000 |
Weighted-Ave. Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 1.09 |
Range 5 [Member] | |
Range of Exercise/Grant Prices (in dollars per share) | $ / shares | $ 4.53 |
Number Outstanding (in shares) | shares | 15,000 |
Weighted-Ave. Remaining Contractual Life | 2 years 29 days |
Number Exercisable (in shares) | shares | 15,000 |
Weighted-Ave. Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 4.53 |
Range 6 [Member] | |
Range of Exercise/Grant Prices (in dollars per share) | $ / shares | $ 10.43 |
Number Outstanding (in shares) | shares | 20,000 |
Weighted-Ave. Remaining Contractual Life | 138 days |
Number Exercisable (in shares) | shares | 20,000 |
Weighted-Ave. Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 10.43 |
Range of Exercise/Grant Prices (in dollars per share) | $ / shares | $ 0.66 |
Number Outstanding (in shares) | shares | 950,000 |
Number Exercisable (in shares) | shares | 560,000 |
Weighted-Ave. Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 0.94 |
Note 7 - Stock Options Activity
Note 7 - Stock Options Activity (Details) - $ / shares | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Balance, stock options (in shares) | 600,000 | 638,500 |
Balance, stock options, weighted-average exercise price (in dollars per share) | $ 0.96 | $ 1.22 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 350,000 | 0 |
Options granted, weighted-average exercise price (in dollars per share) | $ 0.15 | $ 0 |
Options canceled or expired (in shares) | 0 | (38,500) |
Options canceled or expired, weighted-average exercise price (in dollars per share) | $ 0 | $ 5.32 |
Options exercise (in shares) | 0 | 0 |
Options exercise, weighted-average exercise price (in dollars per share) | $ 0 | $ 0 |
Balance, stock options (in shares) | 950,000 | 600,000 |
Balance, stock options, weighted-average exercise price (in dollars per share) | $ 0.66 | $ 0.96 |
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 | $ 0.94 |
Note 8 - Net Income (Loss) Pe49
Note 8 - Net Income (Loss) Per Share (Details Textual) | 12 Months Ended |
Jan. 31, 2016shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 647,000 |
Note 8 - Summary of Basic and D
Note 8 - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Net Income (Loss) Attributable to Parent | $ (1,346) | $ 6,040 |
Basic net income (loss) per share: | ||
Weighted-average shares outstanding-Basic (in shares) | 14,652 | 14,684 |
Basic net (loss) income per share (in dollars per share) | $ (0.09) | $ 0.41 |
Diluted net (loss) inome per share: | ||
Weighted-average shares outstanding-Basic (in shares) | 14,652 | 14,684 |
Effect of potentially dilutive securities (in shares) | 179 | |
Weighted average shares outstanding - diluted (in shares) | 14,652 | 14,863 |
Diluted net (loss) income per share (in dollars per share) | $ (0.09) | $ 0.41 |
Note 9 - Employee Benefit Pla51
Note 9 - Employee Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Minimum [Member] | ||
Defined Contribution Plan Employee Contribution | 1.00% | |
Maximum [Member] | ||
Defined Contribution Plan Employee Contribution | 20.00% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Number of Days | 30 days | |
Years of Age | 18 years | |
Defined Contribution Plans Vesting Period | 4 years | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% |
Note 10 - Commitments and Con52
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Operating Leases, Rent Expense | $ 300,000 | $ 300,000 |
Deferred Compensation Liability, Current and Noncurrent | $ 0 | $ 0 |
Note 10 - Rental Commitments Un
Note 10 - Rental Commitments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Fiscal Year: | |
2,017 | $ 152 |
Total minimum lease payments | $ 152 |
Note 11 - Legal (Details Textua
Note 11 - Legal (Details Textual) | May. 30, 2014USD ($) | May. 16, 2014USD ($) | May. 15, 2014USD ($) | Feb. 04, 2014USD ($) | Apr. 26, 2011USD ($) | Jul. 31, 2014USD ($) | Apr. 16, 2013USD ($) | Feb. 29, 2012 | Sep. 01, 2011 | May. 13, 2011USD ($) |
Additional Damages Sought [Member] | ||||||||||
Gain Contingency, Unrecorded Amount | $ 15,000,000 | |||||||||
Gross Amount [Member] | Chicony Power Technology Company Ltd [Member] | ||||||||||
Litigation Settlement, Amount | $ 10,800,000 | |||||||||
Chicony Power Technology Company Ltd [Member] | ||||||||||
Litigation Settlement, Amount | $ 7,600,000 | $ 7,600,000 | 9,700,000 | |||||||
Previously Accrued Seeking Payments | $ 1,100,000 | |||||||||
Proceeds from Legal Settlements | $ 3,600,000 | $ 4,000,000 | ||||||||
Gain (Loss) Related to Litigation Settlement | $ 7,600,000 | |||||||||
Number of Units Under Indemnity Agreement | 500,000 | |||||||||
Loss Contingency, Damages Sought, Value | $ 1,200,000 | |||||||||
Loss Contingency Amount Claimed for Recovery of Damages | $ 4,900,000 | |||||||||
Number of Patents Relating to Power Technology | 5 | |||||||||
Number of Comarco Patents | 5 |
Schedule II - Valuation and Q55
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Allowance for Doubtful Accounts [Member] | ||
Balance at Beginning of Year | $ 40 | |
Charged to Cost and Expense | ||
Other Changes Add | $ (40) | |
Balance at End of Year | ||
Valuation Allowance of Deferred Tax Assets [Member] | ||
Balance at Beginning of Year | $ 16,106 | $ 16,675 |
Charged to Cost and Expense | ||
Other Changes Add | $ 625 | $ (569) |
Balance at End of Year | $ 16,731 | $ 16,106 |