Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.7.0.1
Income Taxes (Tables)
 12 Months Ended
Apr. 30, 2017
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense

Income tax expense (income) for the years ended April 30 consists of the following:

 

    2017     2016  
Current:                
Federal   $ —     $ —  
State     —       (187,000 )
      —       (187,000 )
Deferred:                
Federal     —       —  
State     —       —  
      —       —  
Total income tax expense (income)   $ —     $ (187,000 )

Schedule of Income Tax Expense U.S. Statutory Federal Income Tax Rate

Income tax expense differs from “expected” tax expense (computed by applying the applicable U.S. statutory Federal income tax rate to earnings before income taxes) as follows:

 

    2017     2016  
             
Federal income tax at statutory rates   $ (651,000 )   $ (479,000 )
State income taxes (net of federal income tax benefit)     (36,000 )     81,000  
Impact of change in state rate     (17,000 )     (69,000 )
State NOL adjustment     121,000       (46,000 )
Other     (12,000 )     —  
Total income tax expense (benefit) before provision for valuation allowance     (595,000 )     (513,000 )
Changes in valuation allowance     595,000       326,000  
Total income tax expense (income)   $ —     $ (187,000 )

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

 

    2017     2016  
Deferred tax assets:                
Compensated absences and severance, principally due to accruals for financial reporting purposes   $ —     $ 3,000  
Stock-based compensation expense     1,617,000       1,438,000  
Accounts receivable, principally due to allowance for doubtful accounts and sales returns     18,000       36,000  
Property and equipment, principally due to differences in depreciation     181,000       208,000  
Intangible assets     (39,000 )     3,000  
Inventories     57,000       104,000  
Net operating losses     11,273,000       10,691,000  
Alternative minimum tax     438,000       438,000  
Capitalized R & D cost     98,000       116,000  
Other     2,000       13,000  
Net deferred tax assets     13,645,000       13,050,000  
                 
Valuation allowance     (13,645,000 )     (13,050,000 )
                 
Net deferred tax assets   $ —     $ —