Provision for (Benefit from) Income Taxes

12 Months Ended

Apr. 30, 2025

Income Tax Disclosure [Abstract]

Provision for (Benefit from) Income Taxes

Provision for (Benefit from) Income Taxes

The components of the (benefit) provision for income taxes are as follows (in thousands):

	Year Ended April 30, 2025
	Federal		State		Foreign		Total
Current	$	—	$	20	$	(95)	$	(75)
Total	$	—	$	20	$	(95)	$	(75)

	Year Ended April 30, 2024
	Federal		State		Foreign		Total
Current	$	—	$	7	$	(39)	$	(32)
Total	$	—	$	7	$	(39)	$	(32)

A reconciliation between the Company’s effective tax rate and the United States statutory tax rate for the years ended April 30, 2025 and 2024 is as follows:

	Year Ended April 30,
	2025		2024
Federal income tax at statutory rate	21.0	%	21.0	%
US vs. foreign tax rate difference	0.2		(0.1)
State income tax, net of federal benefit	4.1		(2.3)
Permanent differences	(0.6)		0.4
Decrease in uncertain tax position	(3.9)		—
Deferred tax asset adjustment	48.2		—
Change in valuation allowance	(70.6)		(18.5)
Income tax expense	(1.6)	%	0.5	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the Company’s deferred tax assets and liabilities as of April 30, 2025 and 2024 consist of the following (in thousands):

	As of April 30,
	2025		2024
Accrued liabilities	$	1,633	$	1,269
Operating leases	250		279
Depreciation and amortization	(217)		(318)
Stock-based compensation expense	1,212		3,792
Capitalized research and development costs	3,712		4,046
Net operating loss carry-forward	8,248		9,038
Total deferred tax assets	14,838		18,106
Less: Valuation allowance	(14,838)		(18,106)
Net deferred tax asset	$	—	$	—

Management has evaluated the available evidence about future tax planning strategies, taxable income, and other possible sources of realization of deferred tax assets and has established a full valuation allowance against its net deferred tax assets as

of April 30, 2025 and 2024.  For the years ended April 30, 2025 and 2024, the Company recorded a valuation allowance of $14.8 million and $18.1 million, respectively. The net decrease in the valuation allowance of $3.3 million during the fiscal year ended April 30, 2025, was mainly due to decreases in the deferred tax assets related to the net operating loss carryforward, stock-based compensation, and capitalized research expenses. The net increase in the valuation allowance of $1.4 million during the fiscal year ended April 30, 2024 was mainly due to increases in the deferred tax assets related to capitalized research expenses and other timing differences. Management continues to assess the realizability of the deferred tax assets at each interim and annual balance sheet date based upon actual and forecasted operating results.

As of April 30, 2025 and 2024, the Company’s estimated U.S. net operating loss carry-forwards were approximately $35.1 million and $38.6 million, respectively. Net operating losses generated prior to May 1, 2018 have a 20-year carryforward and will begin expiring in 2034 for federal and 2031 for state purposes. Losses generated in the fiscal years since the year ended April 30, 2019 may be carried forward indefinitely.  A valuation allowance has been recorded against all of these loss carryforwards.

Under the provisions of the Internal Revenue Code, certain substantial changes in the Company’s ownership may result in a limitation on the amount of net operating losses that may be utilized in future years. During the fiscal year ended April 30, 2013, approximately $12.0 million of the Company’s net operating losses became subject to limitation under Internal Revenue Code Section 382 in connection with an ownership change on January 28, 2013. As a result of the ownership change, the Company’s annual limitation on its use of net operating loss carry-forwards is approximately $432,000.

 The Company files income tax returns in various jurisdictions with varying statutes of limitations.  As of April 30, 2025, the earliest tax year still subject to examination for state purposes is fiscal 2021.  The Company’s tax years for periods ending April 30, 2014 and forward are subject to examination by the United States and certain states due to the carry-forward of unutilized net operating losses.

The following table indicates the changes to the Company’s uncertain tax positions for the period and years ended April 30, 2025 and 2024 in thousands:

	Year Ended April 30,
	2025		2024
Balance, beginning of the year	$	181	$	181
Addition based on tax positions related to prior years	—		—
Payment made on tax positions related to prior years	—		—
Expiration of statute of limitations	(181)		—
Addition based on tax positions related to current year	—		—
Balance, end of year	$	—	$	181

As of April 30, 2024, the above amounts of $181,000 was included in other long-term liabilities.