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Income Taxes
 12 Months Ended
Apr. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
H - Income Taxes
The components of the provision for income taxes are as follows:
Years Ended April 30,
(In thousands)202520242023
Provision for income taxes
Current$15,531 $12,765 $(3,504)
Deferred(10,662)(21,507)8,866 
Total$4,869 $(8,742)$5,362 
A reconciliation of the Company’s statutory income tax rate to the Company’s effective tax rate is as follows:
 Years Ended April 30,
(In thousands)202520242023
Tax provision at statutory rate$4,814 $(8,428)$5,417 
State taxes, net of federal benefit408 (1,204)774 
Permanent differences(410)(227)(558)
Provision to return
(1,183)- - 
Related Finance Company provision/(benefit)
1,083 - - 
Other, net157 1,117 (271)
Total$4,869 $(8,742)$5,362 
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 income tax assets and liabilities were as follows:
 Years Ended April 30,
(In thousands)20252024
Deferred tax assets:
Accrued liabilities
$2,188 $2,218 
Inventory183 152 
Share based compensation5,859 4,803 
Net operating loss
38,033 20,700 
    Deferred revenue9,536 4,030 
Other91 - 
    Total Deferred tax assets55,890 31,903 
Finance receivables(59,714)(46,056)
Property and equipment(2,760)(3,222)
Goodwill(562)(426)
Interest expense limitations- (7)
Total deferred tax liabilities(63,036)(49,711)
Valuation Allowance
- - 
Net deferred tax asset (liability)$(7,146)$(17,808)
As of April 30, 2025, the Company had federal and state net operating loss (“NOL”) carryforwards of approximately $165.4 million and $4.2 million, respectively, which begin to expire in 2038 for state purposes.
Under Internal Revenue Code Section 382, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes to offset its post-change income may be limited. The Company has not completed a study to assess whether an “ownership change” has occurred or whether there have been multiple ownership changes since we became a “loss corporation” as defined in Section 382. Future changes in our stock ownership, which may be outside of our control, may trigger an “ownership change.” In addition, future equity offerings or acquisitions that have equity as a component of the purchase price could result in an “ownership change.” If an “ownership change” has occurred or does occur in the future, utilization of the NOL carryforwards or other tax attributes may be limited, which could potentially result in increased future tax liability to us.
The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations for both federal taxes and the many states in which we operate or do business in. ASC 740 states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits.
The Company records uncertain tax positions as liabilities in accordance with ASC 740 and adjusts these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. As of April 30, 2025 and 2024, the Company has not recorded any uncertain tax positions on the financial statements.