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Income Taxes | 12 Months Ended
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Apr. 30, 2026
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 $437,000 and $416,000 for the years ended April 30, 2026 and 2025, 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. The domestic and foreign components of earnings before income taxes for the years ended April 30, 2026 and 2025, respectively, consisted of the following:
$ in thousands |  | 2026 |  | 2025
Earnings before income taxes |  |  |  |
United States |  | $ | 6,812 |  |  | $ | 10,073 |
Foreign |  | 6,921 |  |  | 4,712 |
Total earnings before income tax expense |  | $ | 13,733 |  |  | $ | 14,785 |
Income tax (benefit) expense for the years ended April 30, 2026 and 2025, respectively, consisted of the following:
$ in thousands |  | 2026 |  | 2025
Current tax (benefit) expense: |  |  |  |
Federal |  | $ | 581 |  |  | $ | 3,042 |
State and local |  | 471 |  |  | 610 |
Foreign |  | 2,236 |  |  | 1,752 |
Total current tax expense |  | 3,288 |  |  | 5,404 |
Deferred tax (benefit) expense: |  |  |  |
Federal |  | 77 |  |  | (1,432) |
State and local |  | 88 |  |  | (650) |
Foreign |  | (185) |  |  | (120) |
Total deferred tax (benefit) expense |  | (20) |  |  | (2,202) |
Net income tax (benefit) expense |  | $ | 3,268 |  |  | $ | 3,202 |
The domestic and foreign components of the Company's income taxes paid, net of refunds received, for the years ended April 30, 2026 and 2025, respectively, consisted of the following:
$ in thousands |  | 2026 |  | 2025
United States federal |  | $ | 1,265 |  |  | $ | 1,849 |
United States state |  | 457 |  |  | 556 |
Foreign - India |  | 1,754 |  |  | 1,506 |
Foreign - Other jurisdictions |  | 84 |  |  | $ | 61 |
Total income taxes paid, net of refunds received |  | 3,560 |  |  | $ | 3,972 |
The reasons for the differences between the net income tax (benefit) expense presented above and the amounts computed by applying the statutory federal income tax rate to earnings before income taxes for the years ended April 30, 2026 and 2025, respectively, are as follows:
$ in thousands |  | 2026 |  |  |  | 2025 |  |
Income tax expense at U.S. federal statutory rate |  | $ | 2,884 |  |  | 21.0 | % |  | $ | 3,105 |  |  | 21.0 | %
State and local taxes, net of federal income tax benefit(1) |  | 460 |  |  | 3.3 | % |  | (168) |  |  | (1.1) | %
Foreign Tax Effects |  |  |  |  |  |  |  |
India |  | 285 |  |  | 2.1 | % |  | 190 |  |  | 1.3 | %
Deferred taxes on unremitted foreign earnings ("APB 23") |  | 437 |  |  | 3.2 | % |  | 416 |  |  | 2.8 | %
Other foreign jurisdictions |  | (95) |  |  | (0.7) | % |  | (7) |  |  | — | %
Cross-border tax laws |  | 21 |  |  | 0.2 | % |  | 6 |  |  | — | %
Tax credits |  | (635) |  |  | (4.6) | % |  | (515) |  |  | (3.5) | %
Increase (decrease) in valuation allowance |  | 5 |  |  | — | % |  | 7 |  |  | — | %
Nontaxable or nondeductible items |  |  |  |  |  |  |  |
Non-deductible transaction costs |  | — |  |  | — | % |  | 348 |  |  | 2.4 | %
Other |  | 70 |  |  | 0.5 | % |  | 61 |  |  | 0.4 | %
Return to provision adjustment |  | (130) |  |  | (0.9) | % |  | (72) |  |  | (0.5) | %
Other items, net |  | (34) |  |  | (0.2) | % |  | (169) |  |  | (1.1) | %
Net income tax (benefit) expense |  | $ | 3,268 |  |  | 23.8 | % |  | $ | 3,202 |  |  | 21.7 | %
(1) In fiscal year 2026, state taxes in California, Minnesota, Texas, Michigan, and North Carolina made up the majority (greater than 50%) of the tax effect in this category. Significant items comprising deferred tax assets and liabilities as of April 30 were as follows:
$ in thousands |  | 2026 |  | 2025
Deferred tax assets: |  |  |  |
Accrued employee benefit expenses |  | $ | 449 |  |  | $ | 417 |
Allowance for credit losses |  | 160 |  |  | 151 |
Deferred compensation |  | 1,925 |  |  | 1,345 |
Tax credits (state, net of federal benefits) |  | 256 |  |  | 170 |
Foreign tax credit carryforwards |  | 638 |  |  | 638 |
Section 174 R&E |  | 1,892 |  |  | 3,269 |
Warranty Accrual |  | 210 |  |  | 193 |
Inventory reserves and capitalized costs |  | 593 |  |  | 478 |
Net operating loss carryforwards |  | 169 |  |  | 147 |
Proceeds on sale leaseback |  | 6,431 |  |  | 6,550 |
Operating lease liabilities |  | 2,076 |  |  | 2,372 |
Other |  | 451 |  |  | 457 |
Total deferred tax assets |  | 15,250 |  |  | 16,187 |
Deferred tax liabilities: |  |  |  |
Book basis in excess of tax basis of property, plant and equipment |  | (2,969) |  |  | (3,024) |
Book basis in excess of tax basis of sale leaseback property |  | (1,108) |  |  | (1,095) |
Book basis in excess of tax basis of intangibles assets |  | (3,758) |  |  | (4,005) |
APB 23 Assertion |  | (1,376) |  |  | (1,507) |
Right of use assets |  | (2,229) |  |  | (2,589) |
Debt Issuance Cost on sale leaseback |  | (126) |  |  | (138) |
Total deferred tax liabilities |  | (11,566) |  |  | (12,358) |
Valuation allowance |  | (768) |  |  | (933) |
Net deferred tax assets |  | $ | 2,916 |  |  | $ | 2,896 |
Deferred tax assets (liabilities) classified in the balance sheet: |  |  |  |
Deferred tax assets, non-current |  | $ | 3,829 |  |  | $ | 3,994 |
Deferred tax liabilities, non-current |  | (913) |  |  | (1,098) |
Net deferred tax assets (liabilities) |  | $ | 2,916 |  |  | $ | 2,896 |
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, 2026, our deferred tax assets primarily related to proceeds on a prior sale leaseback, Section 174 research and expenditures, capitalization, deferred compensation, and operating lease liabilities. A valuation allowance of $768,000 and $933,000 was recorded against our net deferred tax asset balance as of April 30, 2026 and 2025, respectively. For the year ended April 30, 2026, the valuation allowance decreased by approximately $165,000, as compared to a net increase of $7,000 for the year ended April 30, 2025. The decrease was primarily attributable to the removal of the valuation allowance recorded for certain deferred tax assets related to state tax credits that were written off during the fiscal year, partially offset by approximately $5,000 of additional valuation allowance recorded during the year. 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 2022 or state and local tax examinations for years prior to fiscal year 2021. 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 2020. The Company has no unrecognized tax benefits.

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