Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.2.0.727
INCOME TAXES (Tables)
12 Months Ended
Apr. 30, 2015
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Loss from continuing operations before provision for income taxes shown below is based on the geographic locations to which such loss is attributed for the years ended April 30:
 
 
 
Years Ended
 
 
 
April 30,
 
 
 
2015
 
2014
 
Loss income before income taxes:
 
 
 
 
 
 
 
Domestic
 
$
(6,928,103)
 
$
(10,690,849)
 
Foreign
 
 
-
 
 
-
 
Totals
 
$
(6,928,103)
 
$
(10,690,849)
 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes from continuing operations for the years ended April 30, 2015 and 2014 is summarized as follows:
 
 
 
Years Ended
 
 
 
April 30,
 
 
 
2015
 
2014
 
Current
 
 
 
 
 
 
 
Federal
 
$
-
 
$
-
 
State
 
 
69,679
 
 
32,922
 
Foreign
 
 
-
 
 
-
 
Totals
 
 
69,679
 
 
32,922
 
Deferred
 
 
 
 
 
 
 
Federal
 
 
-
 
 
(330,764)
 
State
 
 
-
 
 
-
 
Foreign
 
 
-
 
 
-
 
Totals
 
 
-
 
 
(330,764)
 
Total provision for income taxes (benefits)
 
$
69,679
 
$
(297,842)
 
Schedule of Effective Income Tax Rate Reconciliation
The principal differences between the statutory income tax and the actual provision for income taxes are summarized as follows:
 
 
 
Years Ended
 
 
 
April 30,
 
 
 
2015
 
2014
 
Expected tax benefit at statutory rate (34%)
 
$
(2,355,555)
 
$
(3,634,889)
 
State and local taxes, net of federal tax benefit
 
 
(214,606)
 
 
(392,424)
 
Valuation allowance
 
 
(208,988)
 
 
1,413,818
 
Non deductible financing costs
 
 
963,857
 
 
2,274,805
 
Inducement expense
 
 
1,867,566
 
 
-
 
Other
 
 
17,405
 
 
40,848
 
Totals
 
$
69,679
 
$
(297,842)
 
Schedule of Deferred Tax Assets and Liabilities
The components of the Company’s deferred tax assets and liabilities are as follows:
 
 
 
April 30, 2015
 
April 30, 2014
 
Deferred tax assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
 
$
34,392
 
$
55,140
 
Bonus and vacation accruals
 
 
79,274
 
 
667,992
 
Non-qualified stock options
 
 
144,972
 
 
76,850
 
Federal benefit for foreign tax credit
 
 
265,600
 
 
265,600
 
Accruals
 
 
-
 
 
57,045
 
Valuation allowance
 
 
(524,238)
 
 
(1,122,627)
 
 
 
 
 
 
 
 
 
Deferred tax assets-current
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
Intangible assets
 
 
-
 
 
39,232
 
Goodwill
 
 
-
 
 
35,638
 
Capital loss carryforward
 
 
3,884,389
 
 
949,973
 
Property and equipment
 
 
26,434
 
 
-
 
Net operating loss carryforward
 
 
12,262,334
 
 
11,346,435
 
Valuation allowance
 
 
(16,173,157)
 
 
(12,316,027)
 
 
 
 
 
 
 
 
 
Deferred tax assets-long term
 
 
-
 
 
55,251
 
 
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment
 
 
-
 
 
55,251
 
Deferred tax liabilities-long term
 
 
-
 
 
55,251
 
 
 
 
 
 
 
 
 
Net deferred tax assets (liabilities)
 
$
-
 
$
-
 
Summary of Valuation Allowance
The tax change in the valuation allowance is listed below:
 
 
 
Years Ended
 
 
 
April 30,
 
 
 
2015
 
2014
 
Balance at beginning of the year
 
$
13,438,654
 
 
12,024,836
 
 
 
 
 
 
 
 
 
Charged (reversed) to costs and expenses
 
 
(208,988)
 
 
1,413,818
 
Capital loss from sale of Pride
 
 
3,467,729
 
 
-
 
Balance at end of the year
 
$
16,697,395
 
$
13,438,654