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, 2013 and 2012 are as follows (in thousands):

	April 30, 2013			April 30, 2012
Deferred tax liabilities:
Depreciation	$	(550	)	$	(656	)

Deferred tax assets:
Accounts receivable allowance		18			20
Inventory and other allowances		1,734			1,693
Vacation accruals		101			110

Total gross deferred tax assets		1,853			1,823
Less valuation allowance		-			-

Net deferred tax assets	$	1,303		$	1,167

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

Statutory federal income tax rate (benefit) expense, net of noncontrolling interest	(34.0	)%	34.0	%
State income tax net of federal benefits	0.0	%	4.0	%
Permanent tax	3.7	%	6.8	%
Other	(54.3	)%	(15.1	)%
	(84.6	)%	29.7	%

Income tax expense:
Deferred income tax (benefit)	$	(136	)	$	59
Current income tax (benefit)		(680	)		764

Total income tax expense (benefit)	$	(816	)	$	823

Current income tax expense (benefit) of $(680) and $764 are comprised of $(650) and $594 in federal income tax and $(30) and $170 in state income tax for the years ended April 30, 2013 and 2012, respectively.

The Company has accrued (refundable) income taxes due to federal and state taxing authorities of approximately $(1,395) and $47 for the years ended April 30, 2013 and 2012, 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.