Note 8 - Income Taxes

12 Months Ended

Apr. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. 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, 2022 and 2021 are as follows (in thousands):

	April 30, 2022			April 30, 2021
Deferred tax liabilities:
Depreciation and amortization	$	-		$	(643	)
Deferred compensation, restricted stock		(358	)		(521	)
Total deferred tax liabilities		(358	)		(1,164	)
Deferred tax assets:
Depreciation and amortization	$	1,365		$	-
Accounts receivable allowance		55			39
Inventory and other allowances		65			187
Lease right-to-use		472			451
Vacation accruals		60			37
Jackpot reserves		111			50
Total deferred tax assets		2,128			764
Less valuation allowance		-			-
Net deferred tax asset (liability)	$	1,770		$	(400	)

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

	April 30, 2022			April 30, 2021
Statutory federal income tax rate expense, net of noncontrolling interest		21.00	%		21.00	%
State income tax, net of federal benefits		5.38	%		5.59	%
Permanent tax		-1.12	%		5.36	%
Other		-1.25	%		-15.00	%
		24.01	%		16.95	%
Income tax expense:
Deferred income tax (benefit)	$	174		$	(225	)
Current income tax		3,102			536
Total income tax expense	$	3,276		$	311

Current income tax expense of $3,102 and $536 are comprised of $2,279 and $328 in federal income tax and $823 and $208 in state income tax for the years ended April 30, 2022 and 2021, 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, 2018 and prior. There are no current tax examinations.