Income Taxes (Tables)

12 Months Ended

Apr. 30, 2023

Income tax expense consisted of the following:


	Years ended April 30,
	2023		2022		2021
	(in thousands)
Current:
Federal	$	5,205	$	1,294	$	693
State	1,352		615		386

	6,557		1,909		1,079
Deferred:
Federal	(3,666)		(712)		(238)
State	(426)		(142)		(82)
	(4,092)		(854)		(320)
	$	2,465	$	1,055	$	759

Schedule of 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 2023, 2022 and 2021, to earnings before income taxes as follows:


	Years ended April 30,
	2023		2022		2021
	(in thousands)
Computed “expected” income tax expense	$	2,691	$	2,905	$	1,858
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal income tax effect	601		396		323
Research and development credits	(586)		(522)		(640)
Excess tax benefits from stock option deductions	(70)		(1,737)		(641)
Foreign tax credits	(37)		(44)		(1)
Other, net, including permanent items	(134)		57		(140)
	$	2,465	$	1,055	$	759

Schedule of 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, 2023 and 2022 are presented as follows:


	2023		2022
	(in thousands)
Deferred tax assets:
Accruals and expenses not deducted for tax purposes	$	234	$	473
IRS Section 174 costs	3,651		—
State net operating loss carryforwards	13		49
Fixed asset basis differences	516		823
Nonqualified stock options	2,676		1,740
Foreign net operating loss carryforwards	2,860		3,873
Right of use liability	117		251
Tax credit carryforwards	83		83

Total gross deferred tax assets	10,150		7,292
Less valuation allowance	(2,861)		(3,891)
Net deferred tax	7,289		3,401
Deferred tax liabilities:
Capitalized computer software development costs	(96)		(396)
Net gains/losses on trading securities	(2,160)		(1,993)
Goodwill and intangible assets basis differences	(1,705)		(1,399)
Right of use asset	(108)		(234)
Deferred agent commissions	(900)		(1,151)
Total gross deferred tax liabilities	(4,969)		(5,173)
Net deferred tax assets (liabilities)	$	2,320	$	(1,772)