INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2016

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,
	2016		2015
Loss income before income taxes:
Domestic	$	(3,629,549)	$	(6,928,103)
Foreign		-		-
Totals	$	(3,629,549)	$	(6,928,103)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes from continuing operations for the years ended April 30, 2016 and 2015 is summarized as follows:

	Years Ended April 30,
	2016		2015
Current
Federal	$	-	$	(175)
State		1,706		43,914
Foreign		-		25,940
Totals		1,706		69,679
Deferred
Federal		-		-
State		-		-
Foreign		-		-
Totals		-
Total provision for income taxes	$	1,706	$	69,679

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,
	2016		2015
Expected tax (benefit) provision at statutory rate (34%)	$	(1,233,531)	$	(2,355,555)
Rate differential between US statutory rate (34%) and foreign tax rates		-		25,940
Foreign Tax Deduction		-		(8,820)
State and local taxes, net of federal tax benefit		(675,924)		(214,606)
Valuation allowance		1,288,447		(208,988)
Non deductible financing costs		-		963,857
Write-off of Foreign Tax Credits		265,600		-
Inducement Expense		136,000		1,867,566
Permanent differences		1,706		285
Other		219,408		-
Totals	$	1,706	$	69,679

Schedule of Deferred Tax Assets and Liabilities

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

	April 30, 2016		April 30, 2015
Deferred tax assets:

Allowance for doubtful accounts	$	36,156	$	34,392
Bonus and vacation accruals		53,727		79,274
Non-qualified stock options		1,135,090		144,972
Federal benefit for foreign tax credit		-		265,600
Accruals		-		-
Valuation allowance		(1,224,973)		(524,238)

Deferred tax assets-current		-		-

Intangible assets		-		-
Goodwill		-		-
Capital loss carryforward		4,126,345		3,884,389
Property and equipment		43,948		26,434
Net operating loss carryforward		12,590,576		12,262,334
Valuation allowance		(16,760,869)		(16,173,157)

Deferred tax assets-long term		-		-

Net deferred tax assets (liabilities)	$	-	$	-