Income Taxes (Tables)

12 Months Ended

Apr. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Expense

Income tax expense consisted of the following: 

	Years ended April 30,
	2022		2021		2020
	(in thousands)
Current:
Federal	$	1,294	$	693	$	295
State	615		386		370
	1,909		1,079		665
Deferred:
Federal	(712)		(238)		(513)
State	(142)		(82)		(96)
	(854)		(320)		(609)
	$	1,055	$	759	$	56

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 2022, 2021, and 2020 to earnings before income taxes as follows:

	Years ended April 30,
	2022		2021		2020
	(in thousands)
Computed “expected” income tax expense	$	2,905	$	1,858	$	1,428
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal income tax effect	396		323		214
Research and development credits	(522)		(640)		(703)
Excess tax benefits from stock option deductions	(1,737)		(641)		(737)
Foreign tax credits	(44)		(1)		(164)
Other, net, including permanent items	57		(140)		18
	$	1,055	$	759	$	56

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, 2022 and 2021 are presented as follows:

	2022		2021
	(in thousands)
Deferred tax assets:
Accruals and expenses not deducted for tax purposes	$	473	$	565
State net operating loss carryforwards	49		136
Fixed asset basis differences	823		797
Nonqualified stock options	1,740		1,184
Foreign net operating loss carryforwards	3,873		3,141
Right of use liability	251		390
Tax credit carryforwards	83		83
Total gross deferred tax assets	7,292		6,296
Less valuation allowance	(3,891)		(3,252)
Net deferred tax	3,401		3,044
Deferred tax liabilities:
Capitalized computer software development costs	(396)		(1,192)
Net gains/losses on trading securities	(1,993)		(1,891)
Goodwill and intangible assets basis differences	(1,399)		(1,003)
Right of use asset	(234)		(364)
Deferred agent commissions	(1,151)		(1,221)
Total gross deferred tax liabilities	(5,173)		(5,671)
Net deferred tax liabilities	$	(1,772)	$	(2,627)

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): 

	2022		2021
Balance at beginning of the period	$	10	$	15
Decreases as a result of positions taken during prior periods	(3)		(5)
Increases as a result of positions taken during the current period	—		—
Balance at April 30,	$	7	$	10