Deferred taxes are determined based on the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provision of the enacted tax laws. Significant components of the Company's deferred tax liabilities and assets as of

 

		April 30, 2017				April 30, 2016
Deferred tax liabilities:
Depreciation		$	-			$	-
Deferred tax assets:
Depreciation			309				80
Accounts receivable allowance			43				31
Inventory and other allowances			467				859
Vacation accruals			106				93
NOL carryforward			-				41
Total gross deferred tax assets			925				1,104
Less valuation allowance			-				-
Net deferred tax assets		$	925			$	1,104

 

The reconciliation of the federal statutory income tax rate to the effective tax rate is as follows:

 

		April 30, 2017				April 30, 2016
Statutory federal income tax rate (benefit) expense, net of noncontrolling interest			34.00	%			34.00	%
State income tax net of federal benefits			1.93	%			0.00	%
Permanent tax			1.70	%			30.70	%
Other			(4.30	)%			14.75	%
			33.33	%			79.45	%
Income tax expense:
Deferred income tax		$	179			$	93
Current income tax			589				-
Total income tax expense		$	768			$	93

 

Current income tax expense (benefit) of $

 

The Company believes that its income tax filing positions and deductions will be sustained on audit and does anticipate any adjustments that will result in a material adverse effect on its financial condition, results of operations or cashflow. Therefore, reserve for uncertain income tax position, interest or penalties, have been recorded.

 

The Company files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is longer subject to U.S. Federal tax examinations for tax years beginning on