Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.2
Income Taxes (Tables)
 12 Months Ended
Apr. 30, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense The components of income tax expense are as follows:
Years Ended April 30,
2022 2021
Current income tax expense:
Federal $ —  $ — 
State 27,400  32,644 
Foreign 400,000  — 
Current income tax expense 427,400  32,644 
Deferred income tax expense:
Federal —  — 
State —  — 
Foreign —  — 
Deferred income tax expense —  — 
Income tax expense $ 427,400  $ 32,644 
Schedule of Deferred Income Tax Assets and Liabilities Significant components of the Company's deferred income tax assets and liabilities are as follows:
April 30,
2022 2021
Deferred tax assets:
Net operating loss carryforward $ 18,095,495  $ 15,737,351 
Allowance for doubtful accounts 897,965  1,009,273 
Deferred rent 192,284  252,479 
Stock-based compensation 870,245  — 
Contributions carryforward 11,089  11,013 
Accrued compensation 43,176  — 
Warrant amortization 17,888  — 
Intangibles —  — 
Interest expense limitation carryforward 717,919  86,485 
Total deferred tax assets 20,846,061  17,096,601 
Deferred tax liabilities:
Property and equipment (1,000,092) (356,473)
Intangibles (463,074) (186,063)
Stock-based compensation —  (1,778,017)
Total deferred tax liabilities (1,463,166) (2,320,553)
Deferred tax assets, net $ 19,382,895  $ 14,776,048 
Valuation allowance:
Beginning of year (14,776,048) (12,399,948)
Increase during period (4,606,847) (2,376,100)
Ending balance (19,382,895) (14,776,048)
Net deferred tax asset $ —  $ — 
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:
April 30,
2022 2021
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 4.2  % 4.4  %
     Effect on change in federal tax rates —  % —  %
     Federal and State Minimum Taxes —  % (0.2) %
     Permanent Differences (1.9) % (0.2) %
     Foreign income tax (4.4) % —  %
     Change in Tax Rates - States 1.1  % (2.8) %
     Change in Tax Credits —  % —  %
     Change in Valuation Allowance (50.3) % (22.8) %
     Other 25.6  % 0.3  %
Effective Income Tax Rate (4.7) % (0.3) %