Income Taxes (Tables)

12 Months Ended

Apr. 30, 2022

Income tax expense consisted of the following:


$ in thousands	2022		2021
Current tax expense (benefit):
Federal	$	1,899	$	(396)
State and local	490		8
Foreign	1,008		1,136
Total current tax expense (benefit)	3,397		748
Deferred tax expense (benefit):
Federal	—		449
State and local	—		(135)
Foreign	121		(72)
Total deferred tax expense	121		242
Net income tax expense	$	3,518	$	990

Schedule of Income Tax Reconciliation

The reasons for the differences between the above net income tax expense and the amounts computed by applying the statutory federal income tax rate to earnings before income taxes are as follows:


$ in thousands	2022		2021
Income tax benefit at statutory rate	$	(432)	$	(470)
State and local taxes, net of federal income tax benefit	(29)		(129)
Tax credits (state, net of federal benefit)	(457)		(415)
Effects of differing US and foreign tax rates	22		17

Tax on unrepatriated and repatriated foreign earnings	—		226
Net operating loss adjustment	(286)		118

Impact of foreign subsidiary income to parent	74		67
Increase in valuation allowance	4,170		1,538
Other items, net	456		38
Net income tax expense	$	3,518	$	990

Summary of Deferred Tax Assets and Liabilities

Significant items comprising deferred tax assets and liabilities as of April 30 were as follows:


$ in thousands	2022		2021
Deferred tax assets:
Accrued employee benefit expenses	$	228	$	296
Allowance for doubtful accounts	142		154
Deferred compensation	1,196		1,283
Tax credits (state, net of federal benefits)	170		978
Foreign tax credit carryforwards	638		638
Unrecognized actuarial loss, defined benefit plans	1,202		1,196
Inventory reserves	62		69
Net operating loss carryforwards	112		572
Proceeds on Sale Leaseback	7,215		—
Other	497		568
Total deferred tax assets	11,462		5,754
Deferred tax liabilities:
Book basis in excess of tax basis of property, plant and equipment	(1,758)		(1,596)
Book basis in excess of tax basis of Sale Leaseback property	(1,122)		—
Prepaid pension	(949)		(847)
APB 23 Assertion	(976)		(765)
Debt Issuance Cost on Sale Leaseback	(184)		—
Other	—		(122)
Total deferred tax liabilities	(4,989)		(3,330)
Valuation allowance	(6,901)		(2,731)
Net deferred tax liabilities	$	(428)	$	(307)
Deferred tax assets (liabilities) classified in the balance sheet:

Non-current	(428)		(307)
Net deferred tax liabilities	$	(428)	$	(307)