Income Taxes

9 Months Ended

Jan. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 7 – Income Taxes

We are subject to taxation in the United States and various states jurisdictions in which we conduct our business.

Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items arising in that quarter. On a quarterly basis, we update our estimate of the annual effective tax rate, and if the estimated annual tax rate changes, we make a cumulative adjustment in that quarter.

The provision for income taxes recorded for the three and nine months ended January 31, 2024 and 2023 differs from the U.S. federal statutory tax rate of 21% due primarily to the tax impact of stock-based compensation, non-deductible officers’ compensation, and transportation fringe benefits.

For the three and nine months ended January 31, 2024, we recorded an income tax benefit of $1.1 million and $4.0 million, respectively, resulting in an effective tax rate of approximately 14.9% and 18.7%, respectively.

For the three and nine months ended January 31, 2023, we recorded an income tax expense of $2.8 million and $0.4 million, respectively, resulting in an effective tax rate of 109.5% and 42.8%, respectively.

We have no material uncertain tax position liabilities as of January 31, 2024 and April 30, 2023. It is our policy to recognize interest and penalties related to income tax matters in interest expense and other income (expense), net, respectively, in our unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). There was no accrued interest or penalties associated with uncertain tax positions as of January 31, 2024 and April 30, 2023.