INCOME TAXES	3 Months Ended
Jul. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE 7—INCOME TAXES The Company incurred an income tax benefit of $128,000 during the three months ended July 31, 2020 and incurred income tax expense of $111,000 during the three months ended July 31, 2019, with an effective tax rate of 26.5% and 19.9%, respectively. The income tax benefit was derived from a release of $288,000 from the valuation allowance offset by $160,000 of income tax expense during the three months ended July 31, 2020. The valuation allowance was $301,000 and $589,000 as of July 31, 2020 and April 30, 2020, respectively. As of July 31, 2020, the federal tax returns for the fiscal years ended 2018 through 2020 are open to audit until the statute of limitations closes for the years in which our net operating losses are utilized. We would recognize interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense. As of July 31, 2020, we recorded no accrued interest or penalties related to uncertain tax positions. We expect no significant change in the amount of unrecognized tax benefit, accrued interest or penalties within the next twelve months.

INCOME TAXES

3 Months Ended

Jul. 31, 2020

NOTE 7—INCOME TAXES

The Company incurred an income tax benefit of $128,000 during the three months ended July 31, 2020 and incurred income tax expense of $111,000 during the three months ended July 31, 2019, with an effective tax rate of 26.5% and 19.9%, respectively.

The income tax benefit was derived from a release of $288,000 from the valuation allowance offset by $160,000 of income tax expense during the three months ended July 31, 2020. The valuation allowance was $301,000 and $589,000 as of July 31, 2020 and April 30, 2020, respectively.

As of July 31, 2020, the federal tax returns for the fiscal years ended 2018 through 2020 are open to audit until the statute of limitations closes for the years in which our net operating losses are utilized. We would recognize interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense. As of July 31, 2020, we recorded no accrued interest or penalties related to uncertain tax positions. We expect no significant change in the amount of unrecognized tax benefit, accrued interest or penalties within the next twelve months.