INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2018

INCOME TAXES

Components of the provision (benefit) for income taxes

	2018		2017
Current tax expense
Federal	$	—	$	2,000
State		2,000		1,000
		2,000		3,000
Deferred tax expense (benefit)
Federal		612,000		(137,000)
State		67,000		(18,000)
		679,000		(155,000)
Total income tax provision (benefit)	$	681,000	$	(152,000)

Summary of the principal differences between statutory income tax expense and effective provision for income taxes

	2018		2017
Computed tax expense at statutory rates	$	(405,000)	$	(144,000)
Permanent differences		11,000		6,000
State tax and credits		(49,000)		(18,000)
Provision to return adjustment		6,000		4,000
Impact of federal rate change		467,000		—
Increase in valuation allowance		651,000		—
	$	681,000	$	(152,000)

Summary of net operating loss carryforwards

	Net Operating Loss
Year of Expiration	Carryforwards
2027	$	94,000
2030		28,000
2032		298,000
2037		960,000
2038		909,000
	$	2,289,000

Summary of the components of the net deferred income tax asset

	2018		2017
Net operating loss carryforwards	$	574,000	$	420,000
Inventory valuation reserve		98,000		101,000
Loss on equity and impairment in investee		301,000		437,000
Tax credit carryforward		68,000		68,000
Other		115,000		158,000
		1,156,000		1,184,000
Less: valuation allowance		(1,088,000)		(437,000)
	$	68,000	$	747,000