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Provision for Income Taxes | 12 Months Ended
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Apr. 30, 2019
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, 2019
| Federal |  | State |  | Foreign |  | Total
Current | $ | — |  |  | $ | 2 |  |  | $ | 101 |  |  | $ | 103 |
Total | $ | — |  |  | $ | 2 |  |  | $ | 101 |  |  | $ | 103 |
| Year Ended April 30, 2018
| Federal |  | State |  | Foreign |  | Total
Current | $ | — |  |  | $ | 3 |  |  | $ | 30 |  |  | $ | 33 |
Total | $ | — |  |  | $ | 3 |  |  | $ | 30 |  |  | $ | 33 |
A reconciliation between the Company’s effective tax rate and the United States statutory tax rate for the years ended April 30, 2019 and 2018 is as follows:
| Year Ended April 30,
| 2019 |  | 2018
Federal income tax at statutory rate | 21.0 | % |  | 29.7 | %
US vs. foreign tax rate difference | 1.1 |  |  | 0.1 |
State income tax, net of federal benefit | 0.9 |  |  | (0.2 | )
Permanent differences | (25.4 | ) |  | 0.5 |
Increase in uncertain tax position | — |  |  | (2.1 | )
Other | — |  |  | — |
Change in valuation allowance | 41.0 |  |  | 498.0 |
Changes in tax rates | 6.1 |  |  | (528.4 | )
Income tax expense | 44.7 | % |  | (2.4 | )%
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, 2019 and 2018 consist of the following (in thousands):
| As of April 30,
| 2019 |  | 2018
Accrued liabilities | $ | 385 |  |  | $ | 71 |
Depreciation and amortization | (99 | ) |  | (58 | )
State taxes | — |  |  | 1 |
Stock-based compensation expense | 4,207 |  |  | 4,466 |
Capitalized research and development costs | — |  |  | 43 |
Foreign net operating loss carry-forward | — |  |  | 208 |
Net operating loss carry-forward | 10,460 |  |  | 9,678 |
Total deferred tax assets | 14,953 |  |  | 14,409 |
Less: Valuation allowance | (14,953 | ) |  | (14,409 | )
Net deferred tax asset | $ | — |  |  | $ | — |
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. 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, 2019 and 2018. For the years ended April 30, 2019 and 2018, the Company recorded a valuation allowance of $15.0 million and $14.4 million, respectively. As of April 30, 2019 and 2018, the Company’s estimated U.S. net operating loss carry-forwards were approximately $43 million and $41 million, respectively. Net operating losses generated prior to May 1, 2018 have a 20 year carryforward and will begin expiring in 2025 for federal and 2031 for state purposes. Losses generated in the fiscal year ended April 30, 2019 can be carried forward indefinitely. As of April 30, 2019 and 2018, the Company’s foreign net operating loss carry-forward was approximately $0 and $890,000, respectively, which have an unlimited carryforward period. A valuation allowance has been recorded against all of these loss carryforwards. Under the provisions of the Internal Revenue Code, certain substantial changes in the Company’s ownership may result in a limitation on the amount of net operating losses that may be utilized in future years. During the fiscal year ended April 30, 2013, approximately $12 million of the Company’s net operating losses became subject to limitation under Internal Revenue Code Section 382 in connection with an ownership change on January 28, 2013. As a result of the ownership change, the Company’s annual limitation is approximately $432,000. The Company files income tax returns in various jurisdictions with varying statutes of limitations. As of April 30, 2019, the earliest tax year still subject to examination for state purposes is fiscal 2016. 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, 2019 and 2018 in thousands:
| Year Ended April 30,
| 2019 |  | 2018
Balance, beginning of the year | $ | 151 |  |  | $ | 121 |
Addition based on tax positions related to prior years | — |  |  | — |
Payment made on tax positions related to prior years | — |  |  | — |
Addition based on tax positions related to current year | — |  |  | 30 |
Balance, end of year | $ | 151 |  |  | $ | 151 |
As of April 30, 2019 the above amount of $151,000 was included in other long-term liabilities.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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