Note 7 - Income Taxes

12 Months Ended

Apr. 30, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7. 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, 2021

and

2020

are as follows (in thousands):

	April 30, 2021			April 30, 2020
Deferred tax liabilities:
Depreciation and amortization	$	(643	)	$	(760	)
Deferred compensation, restricted stock		(521	)		(196	)
Total deferred tax liabilities		(1,164	)		(956	)
Deferred tax assets:
Accounts receivable allowance		39			39
Inventory and other allowances		187			185
Lease right-to-use		451			-
Vacation accruals		37			65
Jackpot reserves		50			42
Total deferred tax assets		764			331
Less valuation allowance		-			-
Net deferred tax liability	$	(400	)	$	(625	)

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

	April 30, 2021			April 30, 2020
Statutory federal income tax rate expense, net of noncontrolling interest		21.00	%		21.00	%
State income tax, net of federal benefits		5.59	%		5.10	%
Permanent tax		5.36	%		1.46	%
Other		-15.00	%		-3.60	%
		16.95	%		23.96	%
Income tax expense:
Deferred income tax (benefit)	$	(225	)	$	(260	)
Current income tax		536			1,594
Total income tax expense	$	311		$	1,334

Current income tax expense of

$536

 and

$1,594

 are comprised of

$328

and

$1,151

in federal income tax and

$208

and

$443

in state income tax for the years ended

April 30, 2021

and

2020

, 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, 2016 

and prior. There are

no

current tax examinations.