INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2020

INCOME TAXES

Components of the provision (benefit) for income taxes

	2020		2019
Current tax expense (benefit)
Federal	$	—	$	(34,000)
State		75,000		13,000
		75,000		(21,000)
Deferred tax expense
Federal		—		34,000
State		—		—
		—		34,000
Total income tax provision	$	75,000	$	13,000

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

	2020		2019
Computed tax expense at statutory rates	$	166,000	$	137,000
Permanent differences		98,000		6,000
State tax and credits		59,000		56,000
Adjustments required by change in method of accounting as a result of adopting ASC 606		(24,000)		31,000
Other		(4,000)		—
Use of net operating loss carryforward		(220,000)		(217,000)
	$	75,000	$	13,000

Summary of net operating loss carryforwards

	Net Operating Loss
Year of Expiration	Carryforwards
2038	$	92,000

Summary of the components of the net deferred income tax asset

	2020		2019
Net operating loss carryforwards	$	19,000	$	226,000
Inventory valuation reserve		109,000		89,000
Loss on equity and impairment in investee		301,000		301,000
Tax credit carryforward		—		34,000
Adjustments required by change in method of accounting as a result of adopting ASC 606		—		(31,000)
Cost of sales adjustment from ASC 606		15,000		163,000
Depreciation expense		(171,000)		(111,000)
Uniform capitalization		—		19,000
Right-of-use asset		(538,000)		—
Lease liability		609,000		—
Bad debt reserve		11,000		3,000
Warranty reserve		5,000		9,000
Accrued vacation		35,000		7,000
Accrued bonuses		65,000		42,000
Accrued commissions		15,000		16,000
Claims reserve		7,000		7,000
Stock compensation		105,000		76,000
Deferred rent		—		55,000
Other		2,000		—
		589,000		905,000
Less: valuation allowance		(589,000)		(871,000)
	$	—	$	34,000