Income Taxes (Tables)

12 Months Ended

Apr. 30, 2019

Income tax expense consisted of the following:



	Years ended April 30,
	2019		2018		2017
	(in thousands)
Current:
Federal	$	184	$	2,298	$	5,643
State	334		743		676
	518		3,041		6,319
Deferred:
Federal	256		321		558
State	64		300		117
	320		621		675
	$	838	$	3,662	$	6,994

Earnings before Income Taxes Due to Change in Effective Income Tax Rate

The Company’s actual income tax expense differs from the “expected” income tax expense calculated by applying the Federal statutory rate of 21.0% for fiscal year 2019, our blended U.S. Federal statutory tax rate of 30.3% for fiscal years 2018 and the Federal statutory rate of 35% for fiscal year 2017, to earnings before income taxes as follows:



	Years ended April 30,
	2019			2018			2017
	(in thousands)
Computed “expected” income tax expense	$	1,605		$	4,763		$	7,565
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal income tax effect	339			891			592
Research and development credits	(678		)	(493		)	(520		)
Excess tax benefits from stock option deductions	(251		)	(165		)	(232		)
Foreign tax credits	(112		)	(211		)	(170		)
Rate change – tax reform	—			(1,206		)	—
Other, net, including permanent items	(65		)	83			(241		)
	$	838		$	3,662		$	6,994

Significant Components of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations before Income Taxes

The significant components of deferred income tax expense attributable to income from continuing operations before income taxes for the years ended April 30, 2019, 2018, and 2017 are as follows:



	Years ended April 30,
	2019			2018			2017
	(in thousands)
Deferred tax expense	$	330		$	1,823		$	968
Deferred tax benefit related to tax reform	—			(1,206		)	—
(Decrease) increase in the valuation allowance for deferred tax assets	(10		)	4			(293		)
	$	320		$	621		$	675

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at April 30, 2019 and 2018 are presented as follows:



	2019			2018
	(in thousands)
Deferred tax assets:
Accruals and expenses not deducted for tax purposes	$	328		$	339
State net operating loss carryforwards	217			226
Fixed asset basis differences	831			883
Nonqualified stock options	858			762
Deferred revenue	—			53
Total gross deferred tax assets	2,234			2,263
Less valuation allowance	(160		)	(170		)
Net deferred tax	2,074			2,093
Deferred tax liabilities:
Capitalized computer software development costs	(2,766		)	(2,432		)
Net gains/losses on trading securities	(1,183		)	(938		)
Goodwill and intangible assets basis differences	(639		)	(601		)
Deferred agent commissions	(1,000		)	(737		)
Total gross deferred tax liabilities	(5,588		)	(4,708		)
Net deferred tax liabilities	$	(3,514	)	$	(2,615	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, excluding interest and penalties (in thousands):



	2019			2018
Balance at beginning of the period	$	32		$	33
Decreases as a result of positions taken during prior periods	(11		)	(1		)
Increases as a result of positions taken during the current period	—			—
Balance at April 30,	$	21		$	32