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INCOME TAXES
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

5. INCOME TAXES

 

The following is a geographical breakdown of the Company’s loss before the provision for income taxes:

Schedule of loss before provision for income taxes          
   April 30, 2026   April 30, 2025 
Pre-tax loss:          
Federal  $(8,771,281)  $(4,514,853)
           
Total pre-tax loss  $(8,771,281)  $(4,514,853)

  

Significant components of the Company’s deferred tax assets were as follows:

Schedule of deferred tax assets and liabilities          
   April 30, 2026   April 30, 2025 
Deferred income tax asset:          
Accruals  $-   $3,705 
Capitalized research expenditures   1,376,933    2,022,954 
Net operating loss carryover   12,950,374    10,566,664 
Stock-based compensation   1,082,661    2,677,922 
Total deferred tax asset   15,409,968    15,271,245 
Fixed assets   (14,114)   (23,848)
Valuation allowance   (15,395,854)   (15,247,397)
Deferred income tax asset, net of allowance  $-   $- 

 

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:

          
   April 30, 2026   Percent 
U.S. Federal statutory tax rate   (1,841,969)   21.0%
State and local income tax, net of federal income tax effect (1)   -    0.0%
Change in valuation allowance   211,325    -2.4%
Nontaxable / Nondeductible Items          
Other   7,112    0.1%
Other          
Stock Compensation – cancellations/expirations   1,623,532    -18.5%
Total provision for income taxes   -    0.0%

 

(1)The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California.

 

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:

 

   April 30, 2025   April 30, 2024 
Tax benefit at U.S. Federal statutory tax rate   21.0%   21.0%
State income tax, net of federal benefit   -32.0%   28.9%
Increase (decrease) in tax rate resulting from:          
Change in valuation allowance   11.5%   -49.8%
Stock-based compensation   -0.3%   -0.1%
Other   -0.2%   0.0%
Effective tax rate   0.0%   0.0%

 

 The amounts of cash income taxes paid by the Company were as follows:

     
   For the Year Ended
April 30, 2026		 
Federal  $- 
State and Local:     
California   800 
North Carolina   200 
Other   100 
    1,100 
Foreign   - 
Other   - 
Income taxes, net of amounts refunded  $1,100 

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that the Company’s deferred tax assets will be realized. Management considers the scheduled reversal of deferred tax assets, projected future taxable income and tax planning strategies in making such assessments. Given historical generation of and expected future taxable losses, management determined it is more likely than not that some or all of the deferred tax assets will not be realized. Therefore, a full valuation allowance was maintained, as of the years ended April 30, 2026 and 2025, of $15,395,854 and $15,247,397, respectively.

 

At April 30, 2026, the Company maintained U.S. Federal and state net operating loss (“NOL”) carryovers of approximately $55.3 million and $23.8 million, respectively. Federal and state NOLs begin to expire in various years depending on relevant jurisdiction. In accordance with Internal Revenue Code §382 (“IRC §382”), the future deductibility of the Company’s NOL’s may be subject to an annual limitation in the event of a change in control as defined by applicable regulations. The Company has yet to complete a formal study to confirm NOL’s are not limited in utilization per IRC §382 and may reduce applicable deferred tax assets upon completion of such a study, in future periods.

 

The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company had no uncertain tax positions as of April 30, 2026.

 

The Company’s policy is to recognize interest and penalties related to income tax matters in the provision for income taxes. As of April 30, 2026, no interest or penalties have been recorded pertaining to uncertain tax positions.

 

The Company is subject to taxation in the United States and various U.S. state jurisdictions. All tax years remain open to examination by the Internal Revenue Service and relevant state authorities.

 

The One Big Beautiful Bill Act (“OBBB Act”) was enacted on July 4, 2025, in the United States. The OBBB Act included several significant provisions, including re-establishing a 100% bonus depreciation deduction, re-establishing rules in calculating business interest expense limitations pursuant to Internal Revenue Code §163(j), changing the calculation of international tax inclusions, and removing the capitalization requirements for domestic research or experimental expenditures paid or incurred in tax years beginning after December 31, 2024. Management has considered applicable tax impacts of the OBBB Act within the financial statements for the fiscal year ended April 30, 2026.