| Schedule of Income Tax Expense (Benefit) |
The components of income tax expense are as follows:
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For the Years Ended April 30, |
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|
2020 |
|
2019 |
| Current: |
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|
|
| Federal |
$ |
—Ìý |
Ìý |
|
$ |
—Ìý |
Ìý |
| State |
51,820Ìý |
Ìý |
|
—Ìý |
Ìý |
|
51,820Ìý |
Ìý |
|
—Ìý |
Ìý |
| Deferred: |
|
|
|
| Federal |
—Ìý |
Ìý |
|
—Ìý |
Ìý |
| State |
—Ìý |
Ìý |
|
—Ìý |
Ìý |
|
—Ìý |
Ìý |
|
—Ìý |
Ìý |
| Total Income tax expense |
$ |
51,820Ìý |
Ìý |
|
$ |
—Ìý |
Ìý |
|
| Schedule of Deferred Income Tax Assets and Liabilities |
Significant components of the Company's deferred income tax assets and liabilities are as follows:
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April 30, |
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|
2020 |
|
2019 |
| Deferred tax assets: |
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| Net operating loss carryforward |
$ |
11,044,236Ìý |
Ìý |
|
$ |
9,033,235Ìý |
Ìý |
| Allowance for doubtful accounts |
629,272Ìý |
Ìý |
|
181,774Ìý |
Ìý |
| Deferred rent |
606,594Ìý |
Ìý |
|
180,154Ìý |
Ìý |
| Stock-based compensation |
439,454Ìý |
Ìý |
|
954,586Ìý |
Ìý |
| Contributions carryforward |
11,275Ìý |
Ìý |
|
60Ìý |
Ìý |
| Intangibles |
86,897Ìý |
Ìý |
|
—Ìý |
Ìý |
| Total deferred tax assets |
12,817,728Ìý |
Ìý |
|
10,349,809Ìý |
Ìý |
|
|
|
|
| Deferred tax liabilities: |
|
|
|
| Property and equipment |
(417,780) |
Ìý |
|
(234,336) |
Ìý |
| Intangibles |
—Ìý |
Ìý |
|
(64,439) |
Ìý |
| Total deferred tax liabilities |
(417,780) |
Ìý |
|
(298,775) |
Ìý |
|
|
|
|
| Deferred tax assets, net |
$ |
12,399,948Ìý |
Ìý |
|
$ |
10,051,034Ìý |
Ìý |
|
|
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| Valuation allowance: |
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|
|
| Beginning of year |
(10,051,034) |
Ìý |
|
(7,837,755) |
Ìý |
| Increase during period |
(2,348,914) |
Ìý |
|
(2,213,279) |
Ìý |
| Ending balance |
(12,399,948) |
Ìý |
|
(10,051,034) |
Ìý |
|
|
|
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| Net deferred tax asset |
$ |
—Ìý |
Ìý |
|
$ |
—Ìý |
Ìý |
|
| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows: The Company's effective income tax expense differs from the statutory federal income tax rate of 21% as follows:
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April 30, |
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2020 |
|
2019 |
| Statutory Rate applied to net loss before income taxes |
21.0Ìý |
% |
|
|
21.0Ìý |
% |
| Increase (decrease) in income taxes resulting from: |
|
|
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| ÌýÌýÌýÌýÌýState income taxes, net of federal tax benefit |
5.3Ìý |
% |
|
|
3.6Ìý |
% |
| ÌýÌýÌýÌýÌýFederal and State Minimum Taxes |
(0.9) |
% |
|
|
—Ìý |
% |
| ÌýÌýÌýÌýÌýPermanent Differences |
(0.3) |
% |
|
|
—Ìý |
% |
| ÌýÌýÌýÌýÌýChange in Tax Rates - States |
17.3Ìý |
% |
|
|
—Ìý |
% |
| ÌýÌýÌýÌýÌýChange in Valuation Allowance |
(41.9) |
% |
|
|
(23.8) |
% |
| ÌýÌýÌýÌýÌýOther |
(1.4) |
% |
|
|
(0.8) |
% |
| Effective Income Tax Rate |
(0.9) |
% |
|
0.0Ìý |
% |
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|