INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2015

Schedule of Income before Income Tax, Domestic and Foreign

Loss from continuing operations before provision for income taxes shown below is based on the geographic locations to which such loss is attributed for the years ended April 30:

	Years Ended
	April 30,
	2015		2014
Loss income before income taxes:
Domestic	$	(6,928,103)	$	(10,690,849)
Foreign		-		-
Totals	$	(6,928,103)	$	(10,690,849)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes from continuing operations for the years ended April 30, 2015 and 2014 is summarized as follows:

	Years Ended
	April 30,
	2015		2014
Current
Federal	$	-	$	-
State		69,679		32,922
Foreign		-		-
Totals		69,679		32,922
Deferred
Federal		-		(330,764)
State		-		-
Foreign		-		-
Totals		-		(330,764)
Total provision for income taxes (benefits)	$	69,679	$	(297,842)

Schedule of Effective Income Tax Rate Reconciliation

The principal differences between the statutory income tax and the actual provision for income taxes are summarized as follows:

	Years Ended
	April 30,
	2015		2014
Expected tax benefit at statutory rate (34%)	$	(2,355,555)	$	(3,634,889)
State and local taxes, net of federal tax benefit		(214,606)		(392,424)
Valuation allowance		(208,988)		1,413,818
Non deductible financing costs		963,857		2,274,805
Inducement expense		1,867,566		-
Other		17,405		40,848
Totals	$	69,679	$	(297,842)

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities are as follows:

	April 30, 2015		April 30, 2014
Deferred tax assets:

Allowance for doubtful accounts	$	34,392	$	55,140
Bonus and vacation accruals		79,274		667,992
Non-qualified stock options		144,972		76,850
Federal benefit for foreign tax credit		265,600		265,600
Accruals		-		57,045
Valuation allowance		(524,238)		(1,122,627)

Deferred tax assets-current		-		-

Intangible assets		-		39,232
Goodwill		-		35,638
Capital loss carryforward		3,884,389		949,973
Property and equipment		26,434		-
Net operating loss carryforward		12,262,334		11,346,435
Valuation allowance		(16,173,157)		(12,316,027)

Deferred tax assets-long term		-		55,251

Deferred tax liabilities:

Property and equipment		-		55,251
Deferred tax liabilities-long term		-		55,251

Net deferred tax assets (liabilities)	$	-	$	-

Summary of Valuation Allowance

The tax change in the valuation allowance is listed below:

	Years Ended
	April 30,
	2015		2014
Balance at beginning of the year	$	13,438,654		12,024,836

Charged (reversed) to costs and expenses		(208,988)		1,413,818
Capital loss from sale of Pride		3,467,729		-
Balance at end of the year	$	16,697,395	$	13,438,654