Income Taxes (Tables)
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12 Months Ended |
Apr. 30, 2024 |
| Income Taxes |
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| Schedule of components of income before income taxes |
The components of (loss) income before income taxes are as follows (in thousands): | | | | | | | | | | | | | Year Ended April 30, | | | | 2024 | | 2023 | | 2022 | | Domestic | | $ | 68,968 | | $ | (187,647) | | $ | (10,187) | | Foreign | | | (5,737) | | | (730) | | | (8,956) | | (Loss) income before income taxes | | | 63,231 | | | (188,377) | | | (19,143) | | | | | | | | | | | | | Equity method investment (loss) income | | | (1,674) | | | (2,453) | | | 5,889 | | Total (loss) income before income taxes | | $ | 61,557 | | $ | (190,830) | | $ | (13,254) | |
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| Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense |
A reconciliation of income tax expense (benefit) computed using the U.S. federal statutory rates to actual income tax expense is as follows: | | | | | | | | | | | | Year Ended April 30, | | | | 2024 | | | 2023 | | | 2022 | | U.S. federal statutory income tax rate | | 21.0 | % | | 21.0 | % | | 21.0 | % | Foreign rate differential | | (0.5) | | | (0.1) | | | 4.9 | | State and local income taxes, net of federal benefit | | 0.9 | | | 0.2 | | | 40.8 | | R&D and other tax credits | | (7.8) | | | (1.8) | | | 23.0 | | Valuation allowance | | 1.5 | | | 1.1 | | | (37.4) | | Return to provision adjustments | | 1.6 | | | — | | | (0.9) | | Limit on executive compensation | | 2.7 | | | (0.4) | | | (2.4) | | Permanent items | | 0.6 | | | (0.3) | | | (0.9) | | Foreign derived intangible income | | (16.0) | | | 2.3 | | | — | | Excess benefit of equity awards | | (0.6) | | | 0.8 | | | 5.2 | | Goodwill impairment | | — | | | (17.2) | | | — | | Unrecognized tax benefit | | (0.6) | | | 2.0 | | | — | | Other | | 0.2 | | | 0.2 | | | 0.9 | | Effective income tax rate | | 3.0 | % | | 7.8 | % | | 54.2 | % |
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| Schedule of components of the provision for income taxes |
| | | | | | | | | | | | Year Ended April 30, | | | | 2024 | | | 2023 | | | 2022 | | U.S. federal statutory income tax rate | | 21.0 | % | | 21.0 | % | | 21.0 | % | Foreign rate differential | | (0.5) | | | (0.1) | | | 4.9 | | State and local income taxes, net of federal benefit | | 0.9 | | | 0.2 | | | 40.8 | | R&D and other tax credits | | (7.8) | | | (1.8) | | | 23.0 | | Valuation allowance | | 1.5 | | | 1.1 | | | (37.4) | | Return to provision adjustments | | 1.6 | | | — | | | (0.9) | | Limit on executive compensation | | 2.7 | | | (0.4) | | | (2.4) | | Permanent items | | 0.6 | | | (0.3) | | | (0.9) | | Foreign derived intangible income | | (16.0) | | | 2.3 | | | — | | Excess benefit of equity awards | | (0.6) | | | 0.8 | | | 5.2 | | Goodwill impairment | | — | | | (17.2) | | | — | | Unrecognized tax benefit | | (0.6) | | | 2.0 | | | — | | Other | | 0.2 | | | 0.2 | | | 0.9 | | Effective income tax rate | | 3.0 | % | | 7.8 | % | | 54.2 | % |
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| Schedule of components of the Company's deferred income tax assets and liabilities |
Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands): | | | | | | | | | | April 30, | | | | 2024 | | 2023 | | Deferred income tax assets: | | | | | | | | Accrued expenses | | $ | 2,542 | | $ | 2,153 | | Stock based compensation | | | 3,391 | | | 2,380 | | Allowances, reserves, and other | | | 1,001 | | | (1,032) | | Outside basis difference | | | (33) | | | — | | Unrealized loss on securities | | | 3,588 | | | 3,528 | | Net operating loss and credit carry-forwards | | | 19,800 | | | 20,430 | | Capitalized research and development costs | | | 42,788 | | | 24,962 | | Reserve for inventory excess and obsolescence | | | 5,577 | | | 3,185 | | Lease liability | | | 7,628 | | | 6,960 | | Total deferred income tax assets | | | 86,282 | | | 62,566 | | Deferred income tax liabilities: | | | | | | | | Fixed asset basis | | | (3,516) | | | (4,999) | | Right-of-use asset | | | (7,053) | | | (6,478) | | Intangibles basis | | | (11,239) | | | (3,109) | | Total deferred income tax liabilities | | | (21,808) | | | (14,586) | | Valuation allowance | | | (23,835) | | | (22,503) | | Net deferred tax assets | | $ | 40,639 | | $ | 25,477 | |
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| Summary of activity related to gross unrecognized tax benefits |
The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2024 and 2022 (in thousands): | | | | | | | | | | April 30, | | | | 2024 | | 2023 | | Balance as of May 1 | | $ | 12,841 | | $ | 17,806 | | Increases related to prior year tax positions | | | — | | | — | | Decreases related to prior year tax positions | | | (59) | | | (379) | | Increases related to current year tax positions | | | 2,060 | | | 1,257 | | Decreases related to lapsing of statute of limitations | | | (1,241) | | | (5,843) | | Balance as of April 30 | | $ | 13,601 | | $ | 12,841 | |
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