INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2019

INCOME TAXES

Components of the provision (benefit) for income taxes

	2019		2018
Current tax expense (benefit)
Federal	$	(34,000)	$	—
State		13,000		2,000
		(21,000)		2,000
Deferred tax expense
Federal		34,000		612,000
State		—		67,000
		34,000		679,000
Total income tax provision	$	13,000	$	681,000

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

	2019		2018
Computed tax expense at statutory rates	$	137,000	$	(405,000)
Permanent differences		6,000		11,000
State tax and credits		56,000		(49,000)
Adjustments required by change in method of accounting as a result of adopting ASC 606		31,000		—
Return to provision		—		6,000
Impact of federal rate change		—		467,000
Increase (decrease) in valuation allowance		(217,000)		651,000
	$	13,000	$	681,000

Summary of net operating loss carryforwards

	Net Operating Loss
Year of Expiration	Carryforwards
2037	$	48,000
2038		909,000
	$	957,000

Summary of the components of the net deferred income tax asset

	2019		2018
Net operating loss carryforwards	$	226,000	$	574,000
Inventory valuation reserve		89,000		98,000
Loss on equity and impairment in investee		301,000		301,000
Tax credit carryforward		34,000		68,000
Adjustments required by change in method of accounting as a result of adopting ASC 606		(31,000)		—
Cost of sales adjustment from ASC 606		163,000		—
Depreciation expense		(111,000)		(118,000)
Uniform capitalization		19,000		12,000
Bad debt reserve		3,000		3,000
Warranty reserve		9,000		80,000
Accrued vacation		7,000		12,000
Accrued bonuses		42,000		19,000
Accrued commissions		16,000		16,000
Claims reserve		7,000		7,000
Stock compensation		76,000		47,000
Deferred rent		55,000		36,000
Other		—		1,000
		905,000		1,156,000
Less: valuation allowance		(871,000)		(1,088,000)
	$	34,000	$	68,000