INCOME TAXES

12 Months Ended

Apr. 30, 2012

INCOME TAXES [Abstract]

INCOME TAXES

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, 2012 and 2011 are as follows (in thousands):

	April 30, 2012			April 30, 2011
Deferred tax liabilities:
Depreciation	$	(656	)	$	(248	)
Deferred tax assets:
Accounts receivable allowance		20			56
Inventory and other allowances		1,692			1,338
Vacation accruals		110			80
Total gross deferred tax assets		1,823			1,474
Less valuation allowance		-			-
Net deferred tax assets	$	1,167		$	1,226

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

	April 30, 2012			April 30, 2011
Statutory federal income tax rate		34.00	%		34.00	%
State income tax net of federal benefits		2.4	%		9.70	%
Permanent tax		4.0	%		2.70	%
Noncontrolling interest income in BHCMC, LLC		(14.1	)%		-
Other		(8.9	)%		1.80	%
		17.4	%		48.20	%
Income tax expense:
Deferred income tax	$	59		$	-
Current income tax		764			1,171
Total income tax expense	$	823		$	1,171

Current income tax expense of $764 and $1,171 are comprised of $594 and $925 in federal income tax and $170 and $246 in state income tax for the years ended April 30, 2012 and 2011, respectively.

The Company has accrued income taxes due to federal and state taxing authorities of approximately $47 and $253 for the years ended April 30, 2012 and 2011, 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.