XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Provision for Income Taxes | 12 Months Ended
--- | ---
Apr. 30, 2018
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | Provision for Income Taxes The components of the provision (benefit) for income taxes are as follows (in thousands):
| Year Ended April 30, 2018
| Federal |  | State |  | Foreign |  | Total
Current | $ | — |  |  | $ | 3 |  |  | $ | 30 |  |  | $ | 33 |
Total | $ | — |  |  | $ | 3 |  |  | $ | 30 |  |  | $ | 33 |
| Year Ended April 30, 2017
| Federal |  | State |  | Foreign |  | Total
Current | $ | (14 | ) |  | $ | — |  |  | $ | 33 |  |  | $ | 19 |
Total | $ | (14 | ) |  | $ | — |  |  | $ | 33 |  |  | $ | 19 |
A reconciliation between the Company’s effective tax rate and the United States statutory tax rate for the years ended April 30, 2018 and 2017 is as follows:
| Year Ended April 30,
| 2018 |  | 2017
Federal income tax at statutory rate | 29.7 | % |  | 34.0 | %
US vs. foreign tax rate difference | 0.1 |  |  | — |
State income tax, net of federal benefit | (0.2 | ) |  | 3.9 |
Permanent differences | (2.0 | ) |  | (0.2 | )
Increase in uncertain tax position | (2.1 | ) |  | 1.6 |
Other | 2.5 |  |  | (0.3 | )
Change in valuation allowance | 498.0 |  |  | (39.8 | )
Changes in tax rates | (528.0 | ) |  | 0.5 |
Income tax expense | (2.0 | )% |  | (0.3 | )%
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of April 30, 2018 and 2017 consist of the following (in thousands):
| As of April 30,
| 2018 |  | 2017
Accrued liabilities | $ | 71 |  |  | $ | 103 |
Depreciation and amortization | (58 | ) |  | — |
State taxes | 1 |  |  | 22 |
Stock-based compensation expense | 4,466 |  |  | 6,503 |
Capitalized research and development costs | 43 |  |  | 195 |
Foreign net operating loss carry-forward | 208 |  |  | 214 |
Net operating loss carry-forward | 9,678 |  |  | 14,786 |
Total deferred tax assets | 14,409 |  |  | 21,823 |
Less: Valuation allowance | (14,409 | ) |  | (21,779 | )
Net deferred tax asset | $ | — |  |  | $ | 44 |
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made broad and significant changes to the U.S. tax code including, but not limited to, a change in the federal rate from 34% to 21%, as well as the requirement to pay a one-time transition tax (“deemed repatriation tax”) on all undistributed earnings of foreign subsidiaries. As a result of the enactment of the legislation, the Company recorded a one-time reduction to its deferred tax assets of approximately $7.6 million, which was offset by a similar reduction in the valuation allowance. In accordance with Staff Accounting Bulletin 118 (“SAB 118”), income tax effects of the Tax Act may be refined upon obtaining, preparing, or analyzing additional information during the measurement period and such changes could be material. During the measurement period, provisional amounts may be adjusted for the effects, if any, of interpretative guidance issued after December 31, 2017, by U.S. regulatory and standard-setting bodies. While we are able to make reasonable estimates of the impact of the reduction in corporate rate and the deemed repatriation transition tax, the final impact of the Tax Act may differ from these estimates, due to, among other things, changes in our interpretations and assumptions, additional guidance that may be issued by the I.R.S., and actions we may take. We are continuing to gather additional information to determine the final impact. Management has evaluated the available evidence about future tax planning strategies, taxable income and other possible sources of realization of deferred tax assets and has established a full valuation allowance against its net deferred tax assets as of April 30, 2018 and 2017. For the years ended April 30, 2018 and 2017, the Company recorded a valuation allowance of $14.4 million and $21.8 million, respectively. As of April 30, 2018 and 2017, the Company’s estimated U.S. net operating loss carry-forwards were approximately $41 million and $41 million, respectively, which will begin expiring in 2025 for federal and 2031 for state purposes. As of April 30, 2018 and 2017, the Company’s foreign net operating loss carry-forward was approximately $890,000 and $890,000, respectively, which have an unlimited carryforward period. A valuation allowance has been recorded against all of these losses due to continued overall losses. The Company may be subject to the net operating loss provisions of Section 382 of the Internal Revenue Code. Due to the company's funding transaction, the company may have triggered a net operating loss limitation under Internal Revenue Code §382. The company has not calculated if an ownership change has occurred. The effect of an ownership change would be the imposition of an annual limitation on the use of NOL carryforwards attributable to periods before the change. The amount of the annual limitation depends upon the value of the Company immediately before the change, changes to the Company’s capital during a specified period, and the federal published interest rate. The Company files income tax returns in various jurisdictions with varying statues of limitations. As of April 30, 2018, the earliest tax year still subject to examination for state purposes is fiscal 2015. The Company’s tax years for periods ending April 30, 2002 and forward are subject to examination by the United States and certain states due to the carry-forward of unutilized net operating losses. The following table indicates the changes to the Company’s uncertain tax positions for the period and years ended April 30, 2018 and 2017 in thousands:
| Year Ended April 30,
| 2018 |  | 2017
Balance, beginning of the year | $ | 121 |  |  | $ | 165 |
Addition based on tax positions related to prior years | — |  |  | — |
Payment made on tax positions related to prior years | — |  |  | (84 | )
Addition based on tax positions related to current year | 30 |  |  | 40 |
Balance, end of year | $ | 151 |  |  | $ | 121 |
As of April 30, 2018 the above amount of $151,000 was included in other long-term liabilities.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration