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Income Taxes
 3 Months Ended
Jul. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 7. Income Taxes

The tax effects of temporary differences and carry-forwards that give rise to significant portions of the deferred tax assets and liabilities are presented below:

 

 

July 31,

 

 

April 30,

 

 

 

2024

 

 

2024

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

11,658,241

 

 

$

11,378,409

 

Start-up costs

 

 

808,647

 

 

 

833,918

 

Stock option and warrant payments

 

 

705,662

 

 

 

694,206

 

Accumulated depreciation

 

 

159,300

 

 

 

(3,339

)

Research and development credits

 

 

255,600

 

 

 

255,600

 

Research and development warrants

 

 

21,488

 

 

 

21,488

 

Total deferred tax assets, net

 

 

13,608,938

 

 

 

13,180,282

 

Valuation Allowance

 

 

(13,608,938

)

 

 

(13,180,282

)

Net Deferred Tax Assets

 

$

—

 

 

$

—

 

For the three months ended July 31, 2024 and the year ended April 30, 2024, the Company’s cumulative net operating loss for federal income tax purposes was approximately $56 million and $54 million, respectively. The net operating loss, subject to limitations, may be available in future tax years to offset taxable income. The net operating loss carry-forward will begin to expire in year 2028.

Federal and state tax laws impose restrictions on the utilization of net operating loss carryforwards in the event of a change in ownership as defined by the Internal Revenue Code (the "Code"), Section 382. Under Section 382 of the Code, substantial changes in ownership and the ownership of acquired companies may limit the amount of net operating loss carryforwards that are available to offset taxable income. The annual limitation would not automatically result in the loss of net operating loss carryforwards but may limit the amount available in any given future period.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based upon the projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences, and therefore, a full valuation allowance has been recorded at July 31, 2024 and April 30, 2024.