Income Taxes (Tables)

12 Months Ended

Apr. 30, 2022

Income Taxes

Schedule of components of income before income taxes

The components of income before income taxes are as follows (in thousands):

	Year Ended April 30,
	2022		2021		2020
Domestic	$	(10,187)	$	34,274	$	52,730
Foreign		(8,956)		91		(60)
Income from continuing operations before income taxes		(19,143)		34,365		52,670
Equity method investment loss		5,889		(10,481)		(5,487)
Total income from continuing operations before income taxes	$	(13,254)	$	23,884	$	47,183

Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense

A reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense is as follows:

	Year Ended April 30,
	2022		2021		2020
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Foreign rate differential	4.9		—		—
State and local income taxes, net of federal benefit	40.8		(1.4)		(2.1)
R&D and other tax credits	23.0		(11.5)		(6.8)
Valuation allowance	(37.4)		3.2		3.4
Return to provision adjustments	(0.9)		(0.3)		0.1
Permanent items	(3.3)		3.6		0.7
Foreign derived intangible income	—		(7.6)		(3.9)
Excess benefit of equity awards	5.2		(5.7)		(1.5)
Other	0.9		0.3		0.2
Effective income tax rate	54.2	%	1.6	%	11.1	%

Schedule of components of the provision for income taxes

	Year Ended April 30,
	2022		2021		2020
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Foreign rate differential	4.9		—		—
State and local income taxes, net of federal benefit	40.8		(1.4)		(2.1)
R&D and other tax credits	23.0		(11.5)		(6.8)
Valuation allowance	(37.4)		3.2		3.4
Return to provision adjustments	(0.9)		(0.3)		0.1
Permanent items	(3.3)		3.6		0.7
Foreign derived intangible income	—		(7.6)		(3.9)
Excess benefit of equity awards	5.2		(5.7)		(1.5)
Other	0.9		0.3		0.2
Effective income tax rate	54.2	%	1.6	%	11.1	%

Schedule of components of the Company's deferred income tax assets and liabilities

Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands):

	April 30,
	2022		2021
Deferred income tax assets:
Accrued expenses	$	3,399	$	4,422
Stock based compensation		1,892		2,492
Allowances, reserves, and other		4,455		1,482
Outside basis difference		89		4,617
Unrealized loss on securities		3,229		110
Net operating loss and credit carry-forwards		41,931		33,155
Intangibles basis		—		—
Lease liability		6,303		5,645
Total deferred income tax assets		61,298		51,923
Deferred income tax liabilities:
Fixed asset basis		(10,413)		(10,286)
Right-of-use asset		(5,878)		(5,119)
Intangibles basis		(15,503)		(17,004)
Total deferred income tax liabilities		(31,794)		(32,409)
Valuation allowance		(24,840)		(17,453)
Net deferred tax assets	$	4,664	$	2,061

Summary of activity related to gross unrecognized tax benefits

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2022 and 2021 (in thousands):

	April 30,
	2022		2021
Balance as of May 1	$	17,556	$	14,347
Increases related to prior year tax positions		415		1,305
Decreases related to prior year tax positions		(239)		(116)
Increases related to current year tax positions		1,398		2,074
Decreases related to lapsing of statute of limitations		(1,324)		(54)
Balance as of April 30	$	17,806	$	17,556