Note 3 - Income Taxes

12 Months Ended

Apr. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

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, 2018

and

2017

are as follows (in thousands):

	April 30, 2018			April 30, 2017
Deferred tax liabilities:
Depreciation	$	(112	)	$	-
Deferred tax assets:
Depreciation		-			309
Accounts receivable allowance		30			43
Inventory and other allowances		154			467
Vacation accruals		31			106
Jackpot reserves		26			-
R&D credits		64			-
Total gross deferred tax assets		193			925
Less valuation allowance		-			-
Net deferred tax assets	$	193		$	925

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

	April 30, 2018			April 30, 2017
Statutory federal income tax rate expense, net of noncontrolling interest		30.00	%		34.00	%
State income tax, net of federal benefits		8.16	%		1.93	%
Permanent tax		11.33	%		1.70	%
Other		11.82	%		(4.30	)%
		61.31	%		33.33	%
Income tax expense:
Deferred income tax	$	732		$	179
Current income tax		(192	)		589
Total income tax expense	$	540		$	768

Current income tax expense (benefit) of (

$192

) and

$589

are comprised of (

$295

) and

$550

in federal income tax and

$103

and

$39

in state income tax for the years ended

April 30, 2018

and

2017,

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. 

The Company files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is

no

longer subject to U.S. Federal tax examinations for tax years beginning on

May 1, 2013

and prior. There are

no

current tax examinations.