v3.26.1
Provision for (Benefit from) Income Taxes
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
Provision for (Benefit from) Income Taxes Provision for (Benefit from) Income Taxes
 
The following table presents the components of income (loss) before income taxes and the related income tax expense (benefit) (in thousands):
For the Year Ended April 30,
20262025
Income / (loss) before income taxes:
U.S. operations$(1,164)$4,426 
Italy operations145 116 
Israel operations90 84 
Total income / (loss) before income taxes(929)4,626 
Income tax expense / (benefit):
Current:
U.S. federal$— $— 
U.S. state and local (a)158 20 
Italy44 34 
Israel44 (129)
Total current income tax expense / (benefit)246 (75)
Deferred:
U.S. federal$— $— 
U.S. state and local (a)— — 
Italy— — 
Israel— — 
Total deferred income tax expense / (benefit)— — 
Total income tax expense / (benefit)$246 $(75)
 
(a) Taxes in California, Connecticut, Pennsylvania, and New York City make up the majority of the current U.S. state and local income tax.
Income taxes paid (net of refunds received) related to continuing operations are presented on a cash basis and were as follows (in thousands):

For the Year Ended April 30,
20262025
Jurisdiction:
U.S. federal$— $— 
U.S. state and local:
California106 — 
New York City37 — 
Pennsylvania14 — 
Connecticut24 — 
Italy36 31 
Israel25 12 
Total income taxes paid (net of refunds received)242 43 

The expected tax expense / (benefit) based on the United States statutory federal tax rate is reconciled with actual tax expense / (benefit) as follows (in thousands):
 Year Ended April 30,
 20262025
Expected U.S. federal statutory income tax$(195)21.0 %$972 21.0 %
U.S. state and local income taxes, net of federal benefit (b)125 (13.4)%16 0.3 %
Foreign tax effects:
  Italy:
    Statutory tax rate differences14 (1.5)%8 0.2 %
    Nondeductible expenses— — %1 — %
  Israel:
    Statutory tax rate differences2 (0.2)%2 — %
    Uncertain tax position change— — %(181)(3.9)%
    Return to provision adjustment23 (2.5)%32 0.7 %
Change in U.S. federal valuation allowance126 (13.6)%(3,097)(66.9)%
Nontaxable or nondeductible items:
  Incentive stock compensation (deduction) / inclusion(18)1.9 %88 1.9 %
  Meals and entertainment19 (2.0)%17 0.4 %
Other adjustments:
  Global intangible low-taxed income inclusion59 (6.4)%60 1.3 %
Adjustments to deferred tax assets91 (9.8)%2,007 43.4 %
Income tax expense / (benefit)$246 (26.5)%$(75)(1.6)%

(b) Taxes in California, Connecticut, Pennsylvania, and New York City make up the majority of the effect of the U.S. state and local tax category.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the Company’s deferred tax assets and liabilities as of April 30, 2026 and 2025 consist of the following (in thousands):
As of April 30,
20262025
Deferred tax assets:
Net operating loss carryforwards$10,962 $8,248 
Capitalized research and development costs3,454 3,712 
Right of use liability1,150 1,461 
Deferred revenue315 1,271 
Stock-based compensation1,371 1,212 
Allowance for doubtful accounts and credit losses269 234 
Accrued liabilities153 128 
Total deferred tax assets before valuation allowance17,674 16,266 
Less: Valuation allowance(16,364)(14,838)
Total deferred tax assets after valuation allowance1,310 1,428 
Deferred tax liabilities:
Right of use asset(943)(1,212)
       Fixed assets(367)(216)
Total deferred tax liabilities(1,310)(1,428)
Net deferred tax asset (liability)$— $— 


Management has evaluated the available evidence about future tax planning strategies, taxable income, and other possible sources of realization of deferred tax assets and has established a full valuation allowance against its net deferred tax assets as of April 30, 2026 and 2025. For the years ended April 30, 2026 and 2025, the Company recorded a valuation allowance of $16.3 million and $14.8 million, respectively. The net increase in the valuation allowance of $1.5 million during the fiscal year ended April 30, 2026, was mainly due to increases in the deferred tax assets related to the net operating loss carryforward, net of decreases for other timing differences. The net increase of $1.5 million related to the U.S. federal and state/local jurisdictions of $0.1 million and $1.4 million, respectively. The valuation allowance related to the state/local jurisdictions increased mainly due to changes in the blended state statutory tax rate due to changes in state apportionment percentages.

The net decrease in the valuation allowance of $3.3 million during the fiscal year ended April 30, 2025, was mainly due to decreases in the deferred tax assets related to the net operating loss carryforward, stock-based compensation, and capitalized research expenses. The net decrease of $3.3 million related to the U.S. federal and state/local jurisdictions of $3.1 million and $200,000, respectively. Management continues to assess the realizability of the deferred tax assets at each interim and annual balance sheet date based upon actual and forecasted operating results.

As of April 30, 2026 and 2025, the Company’s estimated U.S. net operating loss carry-forwards were approximately $41.0 million and $35.1 million, respectively. Net operating losses generated prior to May 1, 2018 have a 20-year carryforward and will begin expiring in 2034 for federal and 2031 for state and local tax purposes. Losses generated in the fiscal years since the year ended April 30, 2019 may be carried forward indefinitely. A valuation allowance has been recorded against all of the deferred tax assets related to the loss carryforwards.

Under the provisions of the Internal Revenue Code, certain substantial changes in the Company’s ownership may result in a limitation on the amount of net operating losses that may be utilized in future years. During the fiscal year ended April 30, 2013, approximately $12.0 million of the Company’s net operating losses became subject to limitation under Internal Revenue Code Section 382 in connection with an ownership change on January 28, 2013. As a result of the ownership change, the Company’s annual limitation on its use of net operating loss carry-forwards is approximately $432,000.

The Company files income tax returns in various jurisdictions with varying statutes of limitations. As of April 30, 2026, the earliest tax year still subject to examination for state purposes is fiscal 2022. The Company’s tax years for periods ending April 30, 2014 and forward are subject to examination by the United States and certain states due to the carry-forward of unutilized net operating losses. In Israel, tax returns remain open to review by the Israel Tax Authority (ITA) for four years from the end of the tax year in which the return was filed. The Company's tax years for periods ending April 30, 2020 and forward are subject to examination by the ITA.

The Company intends to indefinitely reinvest the earnings of its foreign subsidiaries and, therefore, has not recognized deferred taxes on the related outside basis differences.
A reconciliation of the Company’s uncertain tax positions for years ended April 30, 2026 and 2025 is as follows (in thousands):
 Year Ended April 30,
 20262025
Balance at beginning of year$— $181 
Additions based on tax positions related to the current year— — 
Additions for tax positions of prior years— — 
Reductions for tax positions of prior years— — 
Settlements— — 
Reductions due to lapse of statute of limitations— (181)
Balance at end of year$— $— 
 
As of May 1, 2024, the above amount of $181,000 was included in other long-term liabilities.