Note 4 - Income Taxes

12 Months Ended

Apr. 30, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

4. 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, 2020

and

2019

are as follows (in thousands):

	April 30, 2020			April 30, 2019
Deferred tax liabilities:
Depreciation and amortization	$	(760	)	$	(923	)
Deferred compensation, restricted stock		(196	)		(257	)
Total deferred tax liabilities		(956	)		(1,180	)
Deferred tax assets:
Accounts receivable allowance		39			39
Inventory and other allowances		185			194
Vacation accruals		65			25
Jackpot reserves		42			37
Total deferred tax assets		331			295
Less valuation allowance		-			-
Net deferred tax liability	$	(625	)	$	(885	)

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

	April 30, 2020			April 30, 2019
Statutory federal income tax rate expense, net of noncontrolling interest		21.00	%		21.00	%
State income tax, net of federal benefits		5.10	%		1.90	%
Permanent tax		1.46	%		1.93	%
Other		-3.60	%		1.46	%
		23.96	%		26.29	%
Income tax expense:
Deferred income tax (benefit)	$	(260	)	$	1,078
Current income tax		1,594			297
Total income tax expense	$	1,334		$	1,375

Current income tax expense of

$1,594

 and

$297

 are comprised of

$1,151

and

$170

in federal income tax and

$443

and

$127

in state income tax for the years ended

April 30, 2020

and

2019

, 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, 2015 

and prior. There are

no

current tax examinations.