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 |
$ |
11,044,236 |
|
|
$ |
9,033,235 |
|
Allowance for doubtful accounts |
629,272 |
|
|
181,774 |
|
Deferred rent |
606,594 |
|
|
180,154 |
|
Stock-based compensation |
439,454 |
|
|
954,586 |
|
Contributions carryforward |
11,275 |
|
|
60 |
|
Intangibles |
86,897 |
|
|
— |
|
Total deferred tax assets |
12,817,728 |
|
|
10,349,809 |
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|
|
|
|
Deferred tax liabilities: |
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|
|
Property and equipment |
(417,780) |
|
|
(234,336) |
|
Intangibles |
— |
|
|
(64,439) |
|
Total deferred tax liabilities |
(417,780) |
|
|
(298,775) |
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|
|
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Deferred tax assets, net |
$ |
12,399,948 |
|
|
$ |
10,051,034 |
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|
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Valuation allowance: |
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|
|
Beginning of year |
(10,051,034) |
|
|
(7,837,755) |
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Increase during period |
(2,348,914) |
|
|
(2,213,279) |
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Ending balance |
(12,399,948) |
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|
(10,051,034) |
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Net deferred tax asset |
$ |
— |
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|
$ |
— |
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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 |
21.0 |
% |
|
|
21.0 |
% |
Increase (decrease) in income taxes resulting from: |
|
|
|
State income taxes, net of federal tax benefit |
5.3 |
% |
|
|
3.6 |
% |
Federal and State Minimum Taxes |
(0.9) |
% |
|
|
— |
% |
Permanent Differences |
(0.3) |
% |
|
|
— |
% |
Change in Tax Rates - States |
17.3 |
% |
|
|
— |
% |
Change in Valuation Allowance |
(41.9) |
% |
|
|
(23.8) |
% |
Other |
(1.4) |
% |
|
|
(0.8) |
% |
Effective Income Tax Rate |
(0.9) |
% |
|
0.0 |
% |
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|
|
|