v3.26.1
Note 7 - Income Taxes
 12 Months Ended
Apr. 30, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 7 – Income Taxes

 

Income taxes consisted of the following for the years ended  April 30, 2026 and  April 30, 2025: 

 

  

April 30,

  

April 30,

 
  

2026

  

2025

 

Current:

        

Federal

 $—  $— 

State and local

  —   — 

Total current

 $—  $— 
         

Deferred:

        

Federal

 $—  $— 

State and local

  —   — 

Total deferred

 $—  $— 
         

Total

 $—  $— 

 

The reconciliation between the Company's effective tax rate on income from continuing operations and the statutory tax rate for the years ended  April 30, 2026 and  April 30, 2025 is as follows:

 

  

For the Year Ended April 30,

 
  

2026

 

Federal statutory tax rate

  (1,919,794)  21%
         

Permanent differences

  5,488   (0.06)%

Other adjustments

        

Other

  (564,490)  6.17%

Change in valuation allowance

  2,478,796   (27.11)%

Effective income tax rate

  —   —%
         
         
  

For the Year Ended April 30,

 
  

2025

 

Federal statutory tax rate

  (439,809)  21%
         

Permanent differences

  1,301   (0.06)%

Change in valuation allowance

  438,508   (20.94)%

Effective income tax rate

  —   —%

 

The tax effects of temporary differences and carry-forwards that give rise to significant portions of the deferred tax assets and liabilities are presented below:

 

  

April 30,

  

April 30,

 
  

2026

  

2025

 

Deferred tax assets (liabilities):

        
         

Net operating loss carryforwards

 $13,721,785  $11,774,383 

Start-up costs

  631,755   942,837 

Stock option and warrant payments

  1,019,736   746,681 

Accumulated depreciation

  1,141,446   729,230 

Research and development credits

  816,075   816,075 

Research and development warrants

  21,488   21,488 

Total deferred tax assets, net

  17,352,285   15,030,694 

Valuation Allowance

  (17,352,285)  (15,030,694)

Net Deferred Tax Assets

 $—  $— 

 

For the years ended April 30, 2026 and April 30, 2025, the Company’s cumulative net operating loss for federal income tax purposes was approximately $65 million and $58 million, respectively. The net operating loss, subject to limitations, may be available in future tax years to offset taxable income. The net operating loss carry-forward will begin to expire in year 2028. 

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based upon the projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences, and therefore, a full valuation allowance has been recorded at April 30, 2026 and April 30, 2025, respectively.