Income Taxes

9 Months Ended

Jan. 31, 2013

Income Taxes [Abstract]

Income Taxes

Income Taxes

The Company uses the asset and liability method for financial reporting of income taxes.  Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and the tax basis of assets and liabilities, and are measured by applying enacted rates and laws to taxable years in which such differences are expected to be recovered or settled.  Any changes in tax rates or laws are recognized in the period when such changes are enacted.  Valuation allowances have been established when necessary to reduce deferred tax assets to the amount expected to be realized.  The Company records a valuation allowance to reduce its deferred tax assets when uncertainty exists regarding the realizability of the deferred tax assets.

The provision for income taxes was $20,000 for the nine months ended January 31, 2013.  The effective tax rate differed from the statutory tax rate primarily due to valuation allowances and net operating loss carry forwards.