Income Taxes |
6 Months Ended |
|---|---|
Jul. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 9: Income Taxes The Company recorded an income tax benefit of $0.1 million and an income tax provision of $0.1 million during the three and six months ended July 31, 2025, respectively, and an income tax provision of $0.4 million and $0.8 million during the three and six months ended July 31, 2024, respectively. The income tax benefit recorded in the second quarter of fiscal 2026 was primarily attributable to federal and state income taxes and tax law changes that occurred during the quarter. As of July 31, 2025, the Company continued to maintain a full valuation allowance against its remaining deferred tax assets. As of July 31, 2025, the Company had unrecognized tax benefits of approximately $12.8 million, none of which would currently affect the Company's effective tax rate if recognized due to the Company's deferred tax assets being fully offset by a valuation allowance. The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at July 31, 2025 will significantly increase or decrease within the next twelve months. There were no interest expense or penalties related to unrecognized tax benefits recorded through July 31, 2025. On July 4, 2025, the United States Congress passed the budget reconciliation bill H.R. 1, commonly referred to as the One Big Beautiful Bill Act ("OBBBA"). The OBBBA makes permanent many of the provisions previously enacted as part of the 2017 Tax Cut and Jobs Act that were set to expire at the end of 2025 and includes other changes to certain U.S. corporate tax provisions. The changes to U.S. tax law that were enacted under the OBBBA include modifications to capitalization of research and development expenses, limitations on deductions for interest expense and accelerated fixed asset depreciation. The Company is currently evaluating the provisions of the OBBBA and assessing its potential effects on its financial position, results of operations, and cash flows, including the expected tax benefits that may arise from the implementation of this new law. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. |