Note 3 - Income Taxes

12 Months Ended

Apr. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

3. INCOME TAXES:

Deferred taxes are determined based on the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provision of the enacted tax laws. Significant components of the Company's deferred tax liabilities and assets as of

April 30,

201

7

and

2016

are as follows (in thousands):

	April 30, 2017		April 30, 2016
Deferred tax liabilities:
Depreciation	$	-	$	-
Deferred tax assets:
Depreciation		309		80
Accounts receivable allowance		43		31
Inventory and other allowances		467		859
Vacation accruals		106		93
NOL carryforward		-		41
Total gross deferred tax assets		925		1,104
Less valuation allowance		-		-
Net deferred tax assets	$	925	$	1,104

The reconciliation of the federal statutory income tax rate to the effective tax rate is as follows:

	April 30, 2017			April 30, 2016
Statutory federal income tax rate (benefit) expense, net of noncontrolling interest		34.00	%		34.00	%
State income tax net of federal benefits		1.93	%		0.00	%
Permanent tax		1.70	%		30.70	%
Other		(4.30	)%		14.75	%
		33.33	%		79.45	%
Income tax expense:
Deferred income tax	$	179		$	93
Current income tax		589			-
Total income tax expense	$	768		$	93

Current income tax expense (benefit) of $

589

and

$0

are comprised of

$550

and

$0

in federal income tax and

$39

and

$0

in state income tax for the years ended

April 30, 2017

and

2016,

respectively.

The Company believes that its income tax filing positions and deductions will be sustained on audit and does

not

anticipate any adjustments that will result in a material adverse effect on its financial condition, results of operations or cashflow. Therefore,

no

reserve for uncertain income tax position, interest or penalties, have been recorded.

The Company files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is

no

longer subject to U.S. Federal tax examinations for tax years beginning on

May 1,

201

2

and prior. There are

no

current tax examinations.