INCOME TAXES (Tables)
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12 Months Ended |
Apr. 30, 2015 |
Income Tax Disclosure [Abstract] |
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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) | |
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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) | |
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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) | |
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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) | | $ | - | | $ | - | |
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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 | |
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