Income Taxes

12 Months Ended

Apr. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future income and deductions implicit in the Balance Sheets. The income tax provision for the fiscal year ended April 30, 2024 and 2023 consisted of the following:

Schedule of Income Tax Provision

Year Ended April 30,	2024		2023
Current:
Federal	$	1,604,000		1,051,000
State		511,000		175,000
Deferred:
Federal		495,000		(108,000	)
State		155,000		(60,000	)
Total income tax provision	$	2,765,000	$	1,058,000

Reconciliation of income taxes with Federal and State taxable income:

Schedule of Reconciliation of Income Taxes with Federal and State Taxable Income

	2024			2023
Income before income taxes	$	10,323,000		$	5,815,000
State income tax deduction		(478,000	)		(351,000	)
Interest and dividend income		(489,000	)		(511,000	)
Nondeductible expenses and timing differences		(2,379,000	)		(11,000	)
Taxable income	$	6,977,000		$	4,942,000

The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes:

Schedule of Statutory Rate to Income Before Taxes

	2024			2023
Income tax provision at statutory rate	$	2,916,000		$	1,657,000
Increase (decrease) income taxes resulting from:
State income taxes		(135,000	)		(100,000	)
Interest and dividend income		(138,000	)		(146,000	)
Deferred taxes		650,000			(168,000	)
Other temporary and permanent differences		(528,000	)		(185,000	)
Income tax expense	$	2,765,000		$	1,058,000
Federal tax rate		21.00	%		21.00	%
State tax rate		7.25	%		7.50	%
Blended statutory rate		28.25	%		28.50	%

Deferred tax assets (liabilities) consist of the following components as of April 30, 2024 and 2023:

Summary of Deferred Tax Assets (Liabilities)

	2024			2023
Deferred tax assets (liabilities):
Depreciation	$	(312,000	)	$	(276,000	)
Capitalized R&D expense		320,000		$	165,000
Inventory valuation		104,000			111,000
Allowance for doubtful accounts		10,000			5,000
Accrued vacation		37,000			37,000
Accumulated unrealized (gain)/loss on investments		(2,547,000	)		(1,769,000	)
Net deferred tax assets (liabilities)	$	(2,388,000	)	$	(1,727,000	)