v3.26.1
Income Taxes
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense/(benefit) from operations consists of the following (in thousands):
For the Years Ended April 30,
202620252024
Current:
Federal (a)$(8)$48 $5 
State (b)48 64 (79)
Foreign5 11 4 
Total current45 123 (70)
Deferred:
Deferred federal— — — 
Deferred state— — — 
Total deferred— — — 
Total income tax expense/(benefit)$45 $123 $(70)

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(a)Fiscal Year 2025 federal current expense is net of $875,000 tax benefit of operating loss carryforwards.
(b)Fiscal Year 2025 state current expense is net of $95,000 tax benefit of operating loss carryforwards.
A reconciliation of the provision for income taxes at statutory rates to the provision reported in the consolidated financial statements for the period ended April 30, 2026, after the adoption of ASU 2023-09 is as follows (in thousands):
April 30, 2026
AmountPercent
U.S Federal Statutory Tax Rate$(1,924)21.0 %
State and Local Income Taxes, Net of Federal Income Tax Effect (c)36(0.4)%
Foreign Tax Effects
 China
  Statutory tax rate Difference between China and United States(24)0.3 %
Effects of Cross-Border Tax Laws
 Global intangible low-tax income20(0.2)%
Tax Credits
 Research & Development Credits(151)1.6 %
Changes in Valuation Allowances1,565(17.1)%
Nontaxable or Nondeductible Items
 Stock Compensation(104)1.1 %
 Executive compensation limitation 550(6.0)%
 Other77(0.8)%
Effective Tax Rate45(0.5)%
The following table presents a reconciliation of the provision for income taxes from operations at statutory rates to the provision (benefit) in the consolidated financial statements as previously disclosed prior to the adoption of ASU 2023-09 (in thousands):
For the Years Ended April 30,
20252024
Federal income taxes expected at the statutory rate$10 $(2,587)
State income taxes, less federal income tax benefit14 (132)
Stock compensation249 436 
Research and development tax credit(149)(203)
Change in deferred tax valuation allowance(192)2,257 
Other191 159 
Total income tax expense/(benefit)$123 $(70)
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(c) State income taxes for Texas composes the majority (greater than 50%) of state income tax expense, net of federal
income tax effect category.
Deferred tax assets (liabilities) related to temporary differences are the following (in thousands):
April 30, 2026April 30, 2025
Non-current tax assets (liabilities):
Inventories$1,380 $1,321 
Accrued expenses, including compensation1,189 2,261 
Workers' compensation— 13 
Warranty reserve309 322 
Stock-based compensation956 991 
State bonus depreciation34 56 
Property, plant, and equipment(1,438)(1,974)
Intangible assets10,056 11,059 
Right-of Use assets(7,145)(7,401)
Right-of Use lease liabilities7,536 7,724 
Capitalized R&D1,875 2,649 
Assets held for sale802 — 
Other(108)(182)
Loss and credit carryforwards5,445 2,267 
Less valuation allowance(20,891)(19,106)
Net deferred tax asset/(liability) — total$— $— 

Cash paid for income taxes (net of refunds) by jurisdiction for the year ended April 30, 2026 as reported in the consolidated financial statements, after the adoption of ASU 2023-09 is as follows:

For the Year Ended April 30,
2026
Jurisdiction(In thousands)
  Federal$— 
State103 
Foreign5 

Cash paid for income taxes (net of refunds) exceeded five percent of total taxes paid (net of refunds) in the following states:
For the Year Ended April 30,
2026
State(In thousands)
 California$(7)
 Kentucky5 
 North Carolina 10 
 New York11 
 Tennessee37 
   Texas33 
Cash paid for income taxes (net of refunds), prior to the adoption of ASU 2023-09, was $100,000 and $(978,000) for the years ended April 30, 2025 and 2024, respectively.
As of April 30, 2026, federal and state net operating loss, or NOL, carryforwards were $20.6 million and $12.2 million, respectively, and $533,000 of federal research & development tax credits. The tax-effected deferred tax assets recorded for federal and state NOL carryforwards were $4.3 million and $586,000, respectively. Under legislation enacted in 2017, informally titled the Tax Cuts and Jobs Act, or Tax Act, federal NOLs incurred in taxable years ending after December 31, 2017, may be carried forward indefinitely. The federal research and development credits of $533,000, which, if unused, will expire between April 30, 2043 and 2045. State NOL carryforwards of $7.7 million, which, if unused, will expire in years April 30, 2033 through April 30, 2056. The remaining $4.5 million of the state NOL carryforwards may also be carried forward indefinitely.
As of April 30, 2026, we continued to maintain a full valuation allowance of $20.9 million against our net deferred income tax assets based on management's assessment that it was more likely than not that our deferred income tax assets will not be recovered. We will continue to evaluate the need for a valuation allowance on our deferred tax assets until there is sufficient positive evidence to support the reversal of all or some portion of these allowances. As of April 30, 2025, we maintained a full valuation allowance of $19.1 million against our net deferred income tax assets based on management's assessment that it was more likely than not that our deferred income tax assets will not be recovered.
The income tax provisions (benefit) represent effective tax rates of (0.5)%, 267.4%, and 0.6% for the fiscal years ended April 30, 2026, 2025, and 2024, respectively.
As of April 30, 2026 and 2025, we did not have any gross tax-effected unrecognized tax benefits.
With limited exception, we are subject to U.S. federal, state, and local, or non-U.S. income tax audits by tax authorities for fiscal years subsequent to April 30, 2022.