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Income Taxes | 12 Months Ended
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Apr. 30, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Effective August 1, 2019, the Company elected to revoke the indefinite reinvestment of foreign unremitted earnings position set forth by ASC 740-30-25-17 for multiple foreign subsidiaries. As a result of this election, the Company recorded a tax withholding expense imposed by the India Income Tax Department of $371,000 and $406,000 for the years ended April 30, 2024 and 2023, respectively. The Company's accounting policy with respect to the Global Intangible Low-Taxed Income ("GILTI") tax rules is that GILTI will be treated as a periodic charge in the year in which it arises. Income tax (benefit) expense consisted of the following:
$ in thousands |  | 2024 |  | 2023
Current tax (benefit) expense: |  |  |  |
Federal |  | $ | 2,332 |  |  | $ | 691 |
State and local |  | 65 |  |  | 197 |
Foreign |  | 2,661 |  |  | 1,736 |
Total current tax expense |  | 5,058 |  |  | 2,624 |
Deferred tax (benefit) expense: |  |  |  |
Federal |  | (10,378) |  |  | — |
State and local |  | (893) |  |  | — |
Foreign |  | 275 |  |  | 515 |
Total deferred tax (benefit) expense |  | (10,996) |  |  | 515 |
Net income tax (benefit) expense |  | $ | (5,938) |  |  | $ | 3,139 |
The reasons for the differences between the above net income tax (benefit) expense and the amounts computed by applying the statutory federal income tax rate to earnings before income taxes are as follows:
$ in thousands |  | 2024 |  | 2023
Income tax expense at statutory rate |  | $ | 2,755 |  |  | $ | 945 |
State and local taxes, net of federal income tax benefit |  | 575 |  |  | (119) |
Tax credits |  | (355) |  |  | (433) |
Effects of differing US and foreign tax rates |  | 243 |  |  | 260 |
Effect of pension settlement |  | (3,870) |  |  | — |
Return to provision adjustment |  | 743 |  |  | 413 |
Impact of foreign subsidiary income to parent |  | 96 |  |  | 99 |
Increase (decrease) in valuation allowance |  | (6,579) |  |  | 1,667 |
Deferred taxes on unremitted earnings |  | 371 |  |  | 406 |
Other items, net |  | 83 |  |  | (99) |
Net income tax (benefit) expense |  | $ | (5,938) |  |  | $ | 3,139 |
Significant items comprising deferred tax assets and liabilities as of April 30 were as follows:
$ in thousands |  | 2024 |  | 2023
Deferred tax assets: |  |  |  |
Accrued employee benefit expenses |  | $ | 152 |  |  | $ | 153 |
Allowance for credit losses |  | 151 |  |  | 114 |
Deferred compensation |  | 950 |  |  | 1,156 |
Tax credits (state, net of federal benefits) |  | 170 |  |  | 170 |
Foreign tax credit carryforwards |  | 638 |  |  | 638 |
Section 174 R&E Addback |  | 2,303 |  |  | 1,558 |
Unrecognized actuarial loss, defined benefit plans |  | — |  |  | 1,064 |
Inventory reserves and capitalized costs |  | 296 |  |  | 201 |
Net operating loss carryforwards |  | 152 |  |  | 249 |
Proceeds on Sale Leaseback |  | 6,316 |  |  | 6,963 |
Operating lease liabilities |  | 1,211 |  |  | 1,558 |
Other |  | 332 |  |  | 254 |
Total deferred tax assets |  | 12,671 |  |  | 14,078 |
Deferred tax liabilities: |  |  |  |
Book basis in excess of tax basis of property, plant and equipment |  | (1,678) |  |  | (1,417) |
Book basis in excess of tax basis of Sale Leaseback property |  | (1,028) |  |  | (1,106) |
Prepaid pension |  | — |  |  | (919) |
APB 23 Assertion |  | (1,572) |  |  | (1,318) |
Right of use assets |  | (1,142) |  |  | (1,526) |
Debt Issuance Cost on Sale Leaseback |  | (142) |  |  | (167) |
Total deferred tax liabilities |  | (5,562) |  |  | (6,453) |
Valuation allowance |  | (926) |  |  | (8,568) |
Net deferred tax liabilities |  | $ | 6,183 |  |  | $ | (943) |
Deferred tax assets (liabilities) classified in the balance sheet: |  |  |  |
Deferred tax assets, non-current |  | $ | 7,401 |  |  | $ | — |
Deferred tax liabilities, non-current |  | (1,218) |  |  | (943) |
Net deferred tax assets (liabilities) |  | $ | 6,183 |  |  | $ | (943) |
The Company is required to evaluate the realization of the deferred tax asset and any requirement for a valuation allowance in accordance with ASC 740-10-30-2(b). This guidance provides that the future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. The Company evaluates all available evidence, both positive and negative, to determine the amount of any required valuation allowance. As of April 30, 2024, our deferred tax assets primarily related to proceeds on a prior sale leaseback and Section 174 research and expenditures addbacks. A valuation allowance of $926,000 and $8,568,000 was recorded against our net deferred tax asset balance as of April 30, 2024 and 2023, respectively. For the year ended April 30, 2024, we recorded a net decrease in valuation allowance of $6,579,000, as compared to a net increase of $1,667,000 for the year ended April 30, 2023, based on management's reassessment of the amount of its deferred tax assets that are more likely than not to be realized. The Company files federal, state and local tax returns with statutes of limitation generally ranging from 3 to 4 years. The Company is generally no longer subject to federal tax examinations for years prior to fiscal year 2020 or state and local tax examinations for years prior to fiscal year 2019. Tax returns filed by the Company's significant foreign subsidiaries are generally subject to statutes of limitations of 3 to 7 years and are generally no longer subject to examination for years prior to fiscal year 2018. The Company has no unrecognized tax benefits.

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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://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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