Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Jul. 11, 2014 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS INC | ' | ' |
Entity Central Index Key | '0000354813 | ' | ' |
Current Fiscal Year End Date | '--04-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $3,457,000 |
Entity Common Stock, Shares Outstanding | ' | 12,962,999 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Apr-14 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $10,444 | $7,259 |
Certificates of deposit | 0 | 1,245 |
Accounts receivable, net of allowance for doubtful accounts of $75 | 712 | 2,054 |
Deferred cost of revenue | 3 | 132 |
Inventories | 1,398 | 3,665 |
Deferred income taxes | 0 | 1,555 |
Other current assets | 217 | 298 |
Total current assets | 12,774 | 16,208 |
Equipment, furniture and fixtures, net | 612 | 573 |
Other noncurrent assets | 49 | 53 |
Total assets | 13,435 | 16,834 |
Current liabilities: | ' | ' |
Accounts payable | 397 | 2,180 |
Accrued payroll and related taxes | 640 | 384 |
Warranty reserves | 188 | 139 |
Payable to Parent | 152 | 202 |
Other current liabilities | 41 | 38 |
Deferred revenues | 470 | 5,451 |
Total current liabilities | 1,888 | 8,394 |
Long-term liabilities | 11 | 0 |
Total liabilities | 1,899 | 8,394 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Preferred shares, no par value; 20,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common shares, no par value; 50,000 shares authorized; 12,963 shares issued and outstanding | 56,370 | 56,370 |
Accumulated deficit | -44,834 | -47,930 |
Total shareholders' equity | 11,536 | 8,440 |
Total liabilities and shareholders' equity | $13,435 | $16,834 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Share data in Thousands, except Per Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Accounts receivable, allowance for doubtful accounts | $75,000 | $75,000 |
Shareholders' equity: | ' | ' |
Preferred shares, par value (in dollars per share) | $0 | $0 |
Preferred shares, shares authorized (in shares) | 20,000 | 20,000 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $0 | $0 |
Common shares, shares authorized (in shares) | 50,000 | 50,000 |
Common shares, shares issued (in shares) | 12,963 | 12,963 |
Common shares, shares outstanding (in shares) | 12,963 | 12,963 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Revenues: | ' | ' |
Sales of products | $21,360 | $9,316 |
Services | 1,338 | 1,255 |
Total Revenues | 22,698 | 10,571 |
Cost of sales: | ' | ' |
Cost of product sales | 14,296 | 6,282 |
Cost of services | 412 | 413 |
Total cost of sales | 14,708 | 6,695 |
Gross profit | 7,990 | 3,876 |
Research and development expenses | 139 | 0 |
Selling, general and administrative expenses | 2,978 | 2,325 |
Income from operations | 4,873 | 1,551 |
Other income: | ' | ' |
Interest and dividend income | 2 | 1 |
Other | 3 | 0 |
Income before provision (benefit) for income taxes | 4,878 | 1,552 |
Provision (benefit) for income taxes | 1,782 | -1,547 |
Net income | $3,096 | $3,099 |
Net income per share: | ' | ' |
Basic (in dollars per share) | $0.24 | $0.24 |
Weighted average shares used in computation of net income per share: | ' | ' |
Basic (in shares) | 12,963 | 12,963 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock [Member] | Accumulated Deficit [Member] | Total |
In Thousands, except Share data | |||
Balance at Apr. 30, 2012 | $56,370 | ($51,029) | $5,341 |
Balance (in shares) at Apr. 30, 2012 | 12,963,000 | ' | ' |
Net income | ' | 3,099 | 3,099 |
Balance at Apr. 30, 2013 | 56,370 | -47,930 | 8,440 |
Balance (in shares) at Apr. 30, 2013 | 12,963,000 | ' | 12,963,000 |
Net income | ' | 3,096 | 3,096 |
Balance at Apr. 30, 2014 | $56,370 | ($44,834) | $11,536 |
Balance (in shares) at Apr. 30, 2014 | 12,963,000 | ' | 12,963,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $3,096 | $3,099 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 188 | 181 |
Deferred income taxes | 1,555 | -1,555 |
Warranty reserve expense | 174 | 153 |
Gain on disposal of equipment | -29 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 1,342 | -1,265 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 726 |
Deferred cost of revenues | 129 | -126 |
Inventories | 2,267 | -1,137 |
Other current and noncurrent assets | 85 | -64 |
Accounts payable | -1,783 | 1,110 |
Accrued payroll and related taxes | 256 | -4 |
Warranty reserves | -125 | -183 |
Payable to Parent | -50 | -50 |
Other liabilities | 14 | -37 |
Deferred revenues | -4,981 | 4,764 |
Net cash provided by operating activities | 2,138 | 5,612 |
Cash flows from investing activities: | ' | ' |
Purchases of certificates of deposit | 0 | -1,245 |
Proceeds from redemption of certificates of deposit | 1,245 | 250 |
Additions to equipment, furniture and fixtures | -233 | -141 |
Proceeds from sale of equipment | 35 | 0 |
Net cash provided by (used in) investing activities | 1,047 | -1,136 |
Net increase in cash and cash equivalents | 3,185 | 4,476 |
Cash and cash equivalents at beginning of year | 7,259 | 2,783 |
Cash and cash equivalents at end of year | 10,444 | 7,259 |
Supplemental cash flow information: | ' | ' |
Cash paid for income taxes | 287 | 48 |
Non-cash inventory activities: | ' | ' |
Inventory transferred to equipment | $0 | $131 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Description of the Business | |||||||||
International Lottery & Totalizator Systems, Inc. (“ILTS” or the “Company,” together with its subsidiary) designs, manufactures, sells, manages, supports and services computerized wagering systems and terminals for the global lottery and pari-mutuel racing industries. The wagering system features include real-time, secure processing of data received from multiple locations, hardware redundancy and complete communications redundancy in order to provide the highest level of fault tolerant operation. In addition, although the Company is not presently doing so, ILTS has demonstrated capability to provide full facilities management services to customer organizations authorized to conduct lotteries. The Company is largely dependent upon significant contracts for its revenue, which typically include a deposit upon contract signing and up to six months lead time before delivery of hardware begins. | |||||||||
The Company, through its wholly-owned subsidiary Unisyn Voting Solutions, Inc. (“Unisyn”), has devoted significant resources to developing federally certified end-to-end optical scan voting systems and a full-featured Election Management Software that provides precinct tabulation, ballot review and audio voting capability. In addition to the InkaVote Plus Precinct Ballot Counter (“PBC”) system certified to the National Association of State Election Directors (“NASED”) 2002 Voting System Standards (“VSS”), the Company received the 2005 Voluntary Voting System Guidelines (“VVSG”) certification from the United States Election Assistance Commission (“EAC”) for its OpenElect® digital optical scan election system – a digital scan voting system built with Java on a streamlined and hardened Linux platform. As part of a jurisdiction’s procurement process, the Company provides the OpenElect® products’ source code for independent review. | |||||||||
These efforts leverage the Company’s extensive experience to develop highly secure, mission-critical solutions that meet the NASED 2002 VSS and the EAC 2005 VVSG standards. In addition, the Company’s voting systems offer the following features: | |||||||||
· | High level of security and vote encryption to ensure integrity and voter privacy; | ||||||||
· | Electronic and paper audit trails that offer added security and redundancy for recounts; | ||||||||
· | Reduce the cost of ballot printing while offering operational efficiencies; | ||||||||
· | Minimal training required for poll workers to set-up and operate; and | ||||||||
· | Minimal voter re-education required. | ||||||||
Berjaya Lottery Management (H.K.) Ltd. (“BLM” or the “Parent”) owns 71.3% of the outstanding voting stock of ILTS. | |||||||||
On January 8, 2014, the Company’s board of directors approved (i) the Company’s reincorporation from California to Delaware by means of a merger with and into a wholly-owned Delaware subsidiary (the “Reincorporation”) and (ii) a subsequent amendment to the surviving company’s certificate of incorporation to effect a 9,245,317-for-1 reverse stock split (the “Reverse Stock Split”) on outstanding shares of common stock. On January 8, 2014, Berjaya Lottery Management (H.K.) Ltd. (“BLM”), the holder of 9,245,317 shares of the Company’s common stock, representing 71.3% of the Company’s outstanding shares of common stock as of that date, approved the Reincorporation and Reverse Stock Split by written consent. Each shareholder holding less than one full share of common stock following the Reverse Stock Split, being every shareholder of the Company other than BLM, will receive a cash payment from the Company for their fractional share interests equal to $1.33 in cash, without interest, for each share of common stock held by such shareholder immediately prior to the Reverse Stock Split. The Reincorporation and the Reverse Stock Split will be effected on or about the date 20 calendar days following the date on which the Company’s Information Statement on Schedule 14C (the “Information Statement”) relating to the Reincorporation and Reverse Stock Split is mailed to the Company’s shareholders. A preliminary Information Statement has been filed with the SEC and currently remains under review. The transactions are expected to be consummated in the fourth quarter of calendar year 2014, and the Company will thereafter promptly terminate its registration and reporting obligations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). | |||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of ILTS and its wholly-owned subsidiary, Unisyn Voting Solutions, Inc. All significant intercompany accounts and transactions are eliminated in consolidation. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. Actual results could differ from those estimates. Estimates may affect the reported amounts of assets and liabilities and revenues and expenses, and the disclosure of contingent assets and liabilities. | |||||||||
Revenue Recognition | |||||||||
The Company derives its revenues primarily from the sales of complete wagering systems, lottery terminals, the OpenElect® and PBC voting systems, other software and software support services. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and the title and risk of loss have been transferred. Service revenues are recognized as the services are rendered, and the related costs of services are recognized on a time and materials basis. | |||||||||
Revenue Recognition for Arrangements with Multiple Deliverables | |||||||||
For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and VSOE is the price actually charged for that deliverable. TPE is determined based on competitor prices for similar deliverables when sold separately. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a standalone basis. | |||||||||
For sales of hardware products, the Company provides various hardware components containing software essential to the hardware product’s functionality, and other components depending on the customers’ needs. The Company allocates revenue to these deliverables using the relative selling price method. Because the Company has not established VSOE or TPE for the hardware, with essential software, revenue is allocated based on ESPs. Revenue is recognized upon shipment of the hardware and the related essential software, provided the other conditions for revenue recognition have been met. The Company also provides software support and product support services on a standalone basis from the sales of the hardware. Amounts allocated to software support and product support services are based on VSOE using hourly or daily billing rates. Revenue is deferred until the services are performed. For annual software licenses, the Company uses VSOE. Amounts allocated to annual software licenses are deferred and recognized on a straight-line basis over the service period, which is typically one year. | |||||||||
The Company considers multiple factors depending on the unique facts and circumstances related to each deliverable when determining ESPs for deliverables without VSOE or TPE. Key factors considered by the Company in developing the ESPs for the hardware include the costs of manufacture and what a customer would reasonably pay based on the features being offered, trends in the market place, size of the territory, and competitive prices. If the facts and circumstances underlying the factors change, including the estimated or actual costs incurred to provide the hardware with the essential software, or should future facts and circumstances lead the management to consider additional factors, the Company’s ESP for the hardware with essential software related to future sales could change. | |||||||||
Revenue Recognition for Percentage-of-Completion Method | |||||||||
For the complete wagering and lottery systems, the Company recognizes revenue by using the percentage-of-completion method when the contracts for complete systems fulfill the following criteria: | |||||||||
1. | Contract performance extends over long periods of time; | ||||||||
2. | The software portion involves significant production, modification or customization; | ||||||||
3. | Reasonably dependable estimates can be made on the progress towards completion, contract revenues and contract costs; and | ||||||||
4. | Each element is essential to the functionality of the other elements of the contracts. | ||||||||
Under the percentage-of-completion method, sales and estimated gross profits are recognized as work progresses. Progress toward completion is measured by the ratio of costs incurred to total estimated costs. Revenue and gross profit may be adjusted prospectively for revisions in the estimated total contract costs. If the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is recorded in the period in which it becomes evident. The total estimated loss includes all costs allocable to the specific contract. | |||||||||
In addition to the software portion of a complete system, the Company develops software for its customers in accordance with the specifications stipulated in a software supply contract. Generally, these contracts are related to additional features or modules to be added to the application software that the Company has previously developed for its customers. Each software contract is reviewed individually to determine the appropriate basis of recognizing revenue. | |||||||||
Deferred Revenues and Deferred Cost of Revenues | |||||||||
Deferred revenues of approximately $470,000 and $5.4 million as of April 30, 2014 and 2013, respectively, represent prepayments for products and services related to lottery terminals, use of the OpenElect® and PBC voting systems and other software and technical support services. Deferred cost of revenues of approximately $3,000 and $132,000 as of April 30, 2014 and 2013, respectively, consist of direct costs associated with lottery terminals, software support and manufacture of voting systems. The Company will recognize revenues and related cost of revenues upon fulfillment of the prescribed criteria for revenue recognition. | |||||||||
Allowance for Doubtful Accounts | |||||||||
The Company determines its allowance for doubtful accounts by considering a number of factors: | |||||||||
1. | Length of time trade accounts receivable are past due; | ||||||||
2. | The Company’s previous loss history; | ||||||||
3. | The customer’s current ability to pay its obligations; | ||||||||
4. | Known specific issues or disputes which exist as of the balance sheet date; and | ||||||||
5. | The condition of the general economy and industry as a whole. | ||||||||
Based on its evaluation, the Company determined that no additional allowance was required as of April 30, 2014. The Company maintained an allowance for doubtful accounts of $75,000 as of April 30, 2014 and 2013. | |||||||||
Warranty Reserves | |||||||||
Estimated warranty costs are accrued as revenues are recognized. Included in the warranty cost accruals are costs for basic warranties on products sold. A summary of product warranty reserve activity for the fiscal years ended April 30, 2014 and 2013 is as follows: | |||||||||
(Amounts in thousands) | |||||||||
Balance at April 30, 2012 | $ | 169 | |||||||
Additional reserves | 153 | ||||||||
Charges incurred | (183 | ) | |||||||
Balance at April 30, 2013 | 139 | ||||||||
Additional reserves | 174 | ||||||||
Charges incurred | (125 | ) | |||||||
Balance at April 30, 2014 | $ | 188 | |||||||
Warranty reserves are based on historical trends and are adjusted periodically to reflect actual experience. Customers do not have a right to return, except for defective products. The most recent inventory cost is used to determine the value of potential warranty costs. Estimated reserves for warranty obligations are accrued as follows: | |||||||||
1. | Contracts – Contract warranties are specific to the individual contracts. Estimated reserves for warranty obligations are accrued as revenue is recognized. Hardware and software components may be warranted separately: | ||||||||
a. | Hardware – The warranty phase for terminals or terminal kits commences upon shipment and can extend from six months to twelve months depending on the specific contract terms. | ||||||||
b. | Software – The warranty phase typically represents a six to twelve-month period of time after delivery, as defined by the specific contract terms. | ||||||||
2. | Spares – Terminal replacement parts are warranted to be free from defects for 90 days from the date of shipment. Based on historical experience, warranty costs for spares have been immaterial. | ||||||||
3. | Other – Specific provisions have been made to cover a small number of particular replacement parts for specific customers. | ||||||||
Income Taxes and Valuation Allowance | |||||||||
The Company recognizes tax benefits associated with uncertain tax positions when, in management’s assessment, it is more likely than not that the positions will be sustained upon examination by a taxing authority. For tax positions that meet the more likely than not recognition threshold, the Company measures the tax benefits as the largest amount that the Company evaluates to have a greater than 50% likelihood of being realized upon ultimate settlement. The Company reviewed its tax positions and determined that an adjustment to the tax provision is not considered necessary nor is a reserve for income taxes required. | |||||||||
The Company accounts for income taxes pursuant to the asset and liability method. This requires deferred income tax assets and liabilities to be computed annually for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the temporary differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||||||||
Foreign Currency Fluctuation | |||||||||
The Company’s reporting currency is the U.S. dollar. Sales are denominated almost exclusively in U.S. dollars. Occasionally, sales have been effected in foreign currencies. Fluctuations in exchange rates from reporting period to reporting period between various foreign currencies and the U.S. dollar may have an impact on revenue and expense. Such effect may be material in any individual reporting period. No material foreign currency transactions occurred during the years ended April 30, 2014 and 2013. | |||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost or the current estimated market values. Cost is determined using the first-in, first-out method. Inventories consisted of the following: | |||||||||
April 30, | April 30, | ||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Raw materials and subassemblies | $ | 1,082 | $ | 2,872 | |||||
Work-in-process | 13 | 33 | |||||||
Finished goods | 303 | 760 | |||||||
$ | 1,398 | $ | 3,665 | ||||||
Equipment, Furniture and Fixtures | |||||||||
Equipment, furniture and fixtures are carried at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which approximate three to seven years. Leasehold improvements are amortized over the shorter of the useful lives of the assets or the lease term. The Company evaluates the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, or when the net book value of such assets exceeds the future undiscounted cash flow attributed to such assets. At April 30, 2014 and 2013, and during the years ended April 30, 2014 and 2013, no indicators of impairment were identified. | |||||||||
Net equipment, furniture and fixtures consisted of the following: | |||||||||
April 30, | April 30, | ||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Plant and machinery | $ | 662 | $ | 757 | |||||
Computer equipment | 1,741 | 1,662 | |||||||
Leasehold improvement | 201 | 201 | |||||||
Furniture, fixtures and equipment | 96 | 96 | |||||||
Construction in progress | 85 | 25 | |||||||
2,785 | 2,741 | ||||||||
Accumulated depreciation and amortization | (2,173 | ) | (2,168 | ) | |||||
Net equipment, furniture and fixtures | $ | 612 | $ | 573 | |||||
Net Income per Share | |||||||||
Basic net income per share was based on the weighted average number of shares outstanding during April 30, 2014 and 2013. | |||||||||
There were no outstanding options or other dilutive securities at April 30, 2014 and 2013. | |||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with a maturity of three months or less at the purchase date to be cash equivalents. |
BUSINESS_SEGMENTS_GEOGRAPHIC_R
BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS [Abstract] | ' | ||||||||||||
BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS | ' | ||||||||||||
2. BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS | |||||||||||||
Segment Information | |||||||||||||
The Company reports segment information based on the “management” approach. Under this approach, operating segments are identified in substantially the same manner as they are reported internally and used by the Company’s chief operating decision maker for purposes of evaluating performance and allocating resources. | |||||||||||||
The Company divides its operations into two operating segments: the gaming business and the voting business. The gaming segment designs and develops computerized wagering systems and terminals for the lottery and pari-mutuel racing industries worldwide. Presently the voting segment generates revenues from the sales of the voting systems and hardware, software licensing, product servicing and software support services. | |||||||||||||
The Company’s segment information is presented below (in thousands): | |||||||||||||
As of and for the Year Ended April 30, 2014 | |||||||||||||
Gaming | Voting | Totals | |||||||||||
Business | Business | ||||||||||||
Total revenues | $ | 18,695 | $ | 4,003 | $ | 22,698 | |||||||
Income from operations | 4,793 | 80 | 4,873 | ||||||||||
Depreciation and amortization | 105 | 83 | 188 | ||||||||||
Segment assets | 11,090 | 2,345 | 13,435 | ||||||||||
As of and for the Year Ended April 30, 2013 | |||||||||||||
Gaming | Voting | Totals | |||||||||||
Business | Business | ||||||||||||
Total revenues | $ | 7,396 | $ | 3,175 | $ | 10,571 | |||||||
Income from operations | 1,502 | 49 | 1,551 | ||||||||||
Depreciation and amortization | 112 | 69 | 181 | ||||||||||
Segment assets | 14,886 | 1,948 | 16,834 | ||||||||||
Geographic Revenues | |||||||||||||
Revenues by geographic area are as follows (in thousands): | |||||||||||||
Years Ended | |||||||||||||
April 30, | |||||||||||||
Customer Location | 2014 | 2013 | |||||||||||
Asia | $ | 11,911 | $ | 4,197 | |||||||||
North America | 4,005 | 3,178 | |||||||||||
Europe | 6,782 | 3,196 | |||||||||||
$ | 22,698 | $ | 10,571 | ||||||||||
As of April 30, 2014 and 2013, all of the Company's assets were held in the United States. During the fiscal years ended April 30, 2014 and 2013, a significant portion of the Company’s revenues was derived from exports from the United States to foreign countries. | |||||||||||||
Major Customers | |||||||||||||
30-Apr-14 | 30-Apr-13 | ||||||||||||
Revenue: | |||||||||||||
From unrelated customers | One customer from the gaming segment accounted for 30% of total revenue and one customer from the voting segment accounted for 10% of total revenue. | One customer from the gaming segment accounted for 30% of total revenue and one customer from the voting segment accounted for 22% of total revenue. | |||||||||||
From related customers | One customer from the gaming segment accounted for 52% of total revenue. | Two customers from the gaming segment accounted for 38% of total revenue or 28% and 10% individually. | |||||||||||
Major Vendors | |||||||||||||
For the year ended April 30, 2014, three vendors accounted for approximately 47%, or 20%, 14%, and 13% individually, of the Company’s product purchases. For the year ended April 30, 2013, five vendors accounted for approximately 73%, or 18%, 18%, 15%, 12%, and 10% individually, of the Company’s product purchases. |
CREDIT_RISK
CREDIT RISK | 12 Months Ended |
Apr. 30, 2014 | |
CREDIT RISK [Abstract] | ' |
CREDIT RISK | ' |
3. CREDIT RISK | |
Of the cash and cash equivalents amount of approximately $10.4 million at April 30, 2014, approximately $2.8 million represents highly liquid money market funds which are not Federal Deposit Insurance Corporation (“FDIC”) insured. As of April 30, 2014, such other cash balances exceeded the FDIC limitation for coverage of $250,000 by approximately $7.6 million. The Company maintains its other cash balances primarily in three financial institutions. The Company reduces its exposure to credit risk by maintaining all of its cash balances with highly rated financial institutions. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
4. INCOME TAXES | |||||||||
The provision (benefit) for income taxes is as follows (in thousands): | |||||||||
Years Ended April 30, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 100 | $ | 5 | |||||
State | 127 | 3 | |||||||
227 | 8 | ||||||||
Deferred: | |||||||||
Federal | 1,327 | (1,327 | ) | ||||||
State | 228 | (228 | ) | ||||||
Total | $ | 1,782 | $ | (1,547 | ) | ||||
The following is a reconciliation of the expected income tax benefit or provision at the statutory federal income tax rate with the actual provision or benefit: | |||||||||
Years Ended April 30, | |||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Expected federal income tax provision | $ | 1,658 | $ | 528 | |||||
State taxes, net of federal benefit | 31 | 2 | |||||||
Permanent differences | 12 | 11 | |||||||
Change in valuation allowance | 71 | (2,088 | ) | ||||||
Other | 10 | - | |||||||
$ | 1,782 | $ | (1,547 | ) | |||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts used for income tax purposes. As of April 30, 2014 and 2013, the Company had net deferred tax assets of $5.1 million and $6.8 million, respectively, primarily attributable to its net operating loss carryforwards as further described below. At April 30, 2014, the Company has provided a valuation allowance against the entire balance of its net deferred tax assets due to the uncertainty regarding realization. As of April 30, 2013, the Company recorded a valuation allowance against the portion of its deferred tax assets that are more likely than not to be realized. | |||||||||
Significant components of the Company’s deferred tax assets are as follows: | |||||||||
April 30, | April 30, | ||||||||
(Amounts in thousands) | 2014 | 2013 | |||||||
Deferred tax assets: | |||||||||
Net operating loss, general business credit and AMT carryforwards | $ | 3,767 | $ | 5,531 | |||||
Deferred revenue | 85 | 85 | |||||||
Reserves and accruals | 1,142 | 1,188 | |||||||
Other | 95 | - | |||||||
5,089 | 6,804 | ||||||||
Deferred tax liabilities: | |||||||||
Other | (26 | ) | (52 | ) | |||||
Net deferred tax assets before valuation allowance | 5,063 | 6,752 | |||||||
Valuation allowance | (5,063 | ) | (5,197 | ) | |||||
Net deferred taxes | $ | - | $ | 1,555 | |||||
As of April 30, 2014, the Company has approximately $9.5 million in federal net operating loss carryforwards that will begin to expire in 2020, unless previously utilized. In addition, as of April 30, 2014, the Company has approximately $284,000 in federal research and development credit carryforwards that begin to expire in 2020. The Company also has approximately $237,000 in federal alternative minimum tax credits that can be carried forward indefinitely. | |||||||||
Pursuant to the Tax Reform Act of 1986, Internal Revenue Code Section 382, utilization of the Company’s federal credit and net operating loss carryforwards may be limited if a cumulative change in ownership of more than 50% occurs within any three-year period. | |||||||||
The Company and its subsidiaries are subject to federal income tax as well as income tax from state jurisdictions. With few exceptions, the Company is no longer subject to income tax examination by tax authorities in major jurisdictions for years prior to April 30, 2010. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where NOLs were generated and carried forward, and make adjustments up to the amount of the carryforwards. The Company is not currently under examination by the IRS or state taxing authorities. | |||||||||
The Company recognizes interest and penalties as a component of income tax expense. There were no interest and penalties for the years ended April 30, 2014 and 2013. | |||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||
Apr. 30, 2014 | |||||
RELATED PARTY TRANSACTIONS [Abstract] | ' | ||||
RELATED PARTY TRANSACTIONS | ' | ||||
5. RELATED PARTY TRANSACTIONS | |||||
During the years ended April 30, 2014 and 2013, revenues from all related party agreements for sales of products and services totaled approximately $11.9 million (52% of total revenue) and $4.2 million (40% of total revenue), respectively. Accounts receivable balances at April 30, 2014 and 2013 were $11,000 and $411,000, respectively, from these customers. Descriptions of the transactions with the Company’s related parties in the years ended April 30, 2014 and 2013 are presented below. | |||||
Berjaya Lottery Management (H.K.) Ltd. | |||||
In 1996, the Company entered into an agreement to purchase specific inventory on behalf of Berjaya Lottery Management (H.K.) Ltd. (“BLM”), the owner of 71.3% of ILTS’s outstanding voting stock as of April 30, 2014. | |||||
Over time, the Company has sold or used portions of the BLM inventory in unrelated third-party transactions. The sale or use of the inventory resulted in a liability to BLM for the cost of the items utilized. | |||||
The financial activities and balances related to BLM were as follows: | |||||
· | There were no related party sales to BLM in the years ended April 30, 2014 and 2013; | ||||
· | There were no accounts receivable balances from BLM at April 30, 2014 and 2013; | ||||
· | Liabilities to BLM arising from the sale or use of the BLM inventory, recorded as “Payable to Parent,” were $152,000 and $202,000 as of April 30, 2014 and 2013, respectively; and | ||||
· | There were no inventory balances held for BLM as of April 30, 2014 and 2013. | ||||
Sports Toto Malaysia Sdn. Bhd. | |||||
The Company provides lottery products, software development and software support services to Sports Toto Malaysia (“STM”), an affiliate of BLM and a related party. | |||||
In January 2013, the Company received from STM, an order valued at approximately $11 million for lottery products. Shipments of these products were completed in fiscal 2014 and the related revenue was recognized. | |||||
The financial activities and balances related to transactions with STM were as follows: | |||||
· | Revenue of approximately $11.7 million recognized on the sale of lottery products and supporting services during the year ended April 30, 2014. Revenue recognized on the performance of contract deliverables and sale of support services totaled approximately $3 million during the year ended April 30, 2013; | ||||
· | There was deferred revenue of $10,000 on lottery products and support services as of April 30, 2014, compared to $3.3 million as of April 30, 2013; and | ||||
· | There was no accounts receivable balance as of April 30, 2014. Accounts receivable balance from STM totaled $410,000 as of April 30, 2013. | ||||
Philippine Gaming Management Corporation | |||||
The Company provides lottery products and software development to Philippine Gaming Management Corporation (“PGMC”), a related party and a subsidiary of BLM. | |||||
In addition, the Company provides PGMC with terminal spare parts on an ongoing basis and support services on an as-needed basis. | |||||
The financial activities and balances related to transactions with PGMC were as follows: | |||||
· | Revenues recognized on the sale of lottery products and support services totaled approximately $72,000 during the year ended April 30, 2014, compared to $1.1 million in 2013; | ||||
· | There were no deferred revenue balances as of April 30, 2014 and 2013; and | ||||
· | There were no accounts receivable balances as of April 30, 2014 and 2013. | ||||
Natural Avenue Sdn. Bhd. | |||||
The Company provides Natural Avenue Sdn. Bhd. (“Natural Avenue”), an affiliate of BLM and a related party, with lottery and software products, support services and spare parts. | |||||
The financial activities and balances related to transactions with Natural Avenue were as follows: | |||||
· | Revenues of $142,000 were recognized on the sale of support services and licensing during the years ended April 30, 2014 and 2013; | ||||
· | There were deferred revenue balances of $4,000 on lottery product licensing as of April 30, 2014 and 2013; and | ||||
· | Accounts receivable balance was $11,000 as of April 30, 2014, compared to $1,000 as of April 30, 2013. | ||||
Sports Toto Computers Sdn. Bhd. | |||||
The Company engages Sports Toto Computers Sdn. Bhd. (“STC”), a related party, to provide consulting, programming and other related services to the Company. | |||||
During the years ended April 30, 2014 and 2013, the Company incurred approximately $203,000 and $196,000, respectively. | |||||
LEASES
LEASES | 12 Months Ended | ||||
Apr. 30, 2014 | |||||
LEASES [Abstract] | ' | ||||
LEASES | ' | ||||
6. LEASES | |||||
On April 12, 2012, the Company entered into an amendment agreement to extend the term of its building lease to November 30, 2015. Effective December 1, 2012, the monthly base rent payment was $13,900 for the first year of the lease and the monthly base rent payments will be $14,400 and $15,000 for years two and three, respectively. The agreement also provides for one month of free rent. | |||||
Future minimum lease payments for all operating leases are as follows (in thousands): | |||||
For Fiscal Year Ending April 30, | Minimum Lease Payments | ||||
2015 | $ | 176 | |||
2016 | 105 | ||||
$ | 281 | ||||
Rent expense for all operating leases for the years ended April 30, 2014 and 2013 was $174,000 and $170,000, respectively. | |||||
EMPLOYEE_401k_PLANS
EMPLOYEE 401(k) PLANS | 12 Months Ended |
Apr. 30, 2014 | |
EMPLOYEE 401(k) PLANS [Abstract] | ' |
EMPLOYEE 401(k) PLANS | ' |
7. EMPLOYEE 401(k) PLANS | |
The Company maintains a 401(k) plan (the “Plan”), qualified under the Internal Revenue Code, in which all eligible employees, as defined in the Internal Revenue Code, may elect to participate. Under the Plan, employees may voluntarily make tax-deferred contributions of up to 15% of their compensation to a trust, which provides the participant with various investment alternatives. In addition, for each fiscal year, the Company, at the discretion of the Board of Directors, may contribute an amount of Company stock with a fair market value that does not exceed 5% of the annual compensation of all participants in the Plan. The Company made no contributions during the years ended April 30, 2014 or 2013. The Company also maintains another 401(k) plan in which long-tenured employees maintain accounts; however, the Company and its employees are no longer contributing to this plan. | |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Apr. 30, 2014 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' |
8. FAIR VALUE OF FINANCIAL INSTRUMENTS | |
The Company’s material financial instruments consist of its cash and cash equivalents, certificates of deposit, accounts receivable, accounts payable and related party payables. The carrying amounts of the Company’s financial instruments generally approximated their fair values at April 30, 2014 and 2013 due to the short-term maturity of the instruments. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Apr. 30, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
9. RECENT ACCOUNTING PRONOUNCEMENTS | |
In May 2014, the FASB issued an update to ASC 606, Revenue from Contracts with Customers. This update to ASC 606 provides a five-step process to determine when and how revenue is recognized. The core principle of the guidance is that a Company should recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration to be received in exchange for those goods or services. This update to ASC 606 will also result in enhanced disclosures about revenue, providing guidance for transactions that were not previously addressed comprehensively, and improving guidance for multiple-element arrangements. This update to ASC 606 is effective for the Company beginning in fiscal 2018. The company is currently evaluating the impact of this update on its consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||
Principles of Consolidation | ' | ||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of ILTS and its wholly-owned subsidiary, Unisyn Voting Solutions, Inc. All significant intercompany accounts and transactions are eliminated in consolidation. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. Actual results could differ from those estimates. Estimates may affect the reported amounts of assets and liabilities and revenues and expenses, and the disclosure of contingent assets and liabilities. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
The Company derives its revenues primarily from the sales of complete wagering systems, lottery terminals, the OpenElect® and PBC voting systems, other software and software support services. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and the title and risk of loss have been transferred. Service revenues are recognized as the services are rendered, and the related costs of services are recognized on a time and materials basis. | |||||||||
Revenue Recognition for Arrangements with Multiple Deliverables | ' | ||||||||
Revenue Recognition for Arrangements with Multiple Deliverables | |||||||||
For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and VSOE is the price actually charged for that deliverable. TPE is determined based on competitor prices for similar deliverables when sold separately. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a standalone basis. | |||||||||
For sales of hardware products, the Company provides various hardware components containing software essential to the hardware product’s functionality, and other components depending on the customers’ needs. The Company allocates revenue to these deliverables using the relative selling price method. Because the Company has not established VSOE or TPE for the hardware, with essential software, revenue is allocated based on ESPs. Revenue is recognized upon shipment of the hardware and the related essential software, provided the other conditions for revenue recognition have been met. The Company also provides software support and product support services on a standalone basis from the sales of the hardware. Amounts allocated to software support and product support services are based on VSOE using hourly or daily billing rates. Revenue is deferred until the services are performed. For annual software licenses, the Company uses VSOE. Amounts allocated to annual software licenses are deferred and recognized on a straight-line basis over the service period, which is typically one year. | |||||||||
The Company considers multiple factors depending on the unique facts and circumstances related to each deliverable when determining ESPs for deliverables without VSOE or TPE. Key factors considered by the Company in developing the ESPs for the hardware include the costs of manufacture and what a customer would reasonably pay based on the features being offered, trends in the market place, size of the territory, and competitive prices. If the facts and circumstances underlying the factors change, including the estimated or actual costs incurred to provide the hardware with the essential software, or should future facts and circumstances lead the management to consider additional factors, the Company’s ESP for the hardware with essential software related to future sales could change. | |||||||||
Revenue Recognition for Percentage-of-Completion Method | ' | ||||||||
Revenue Recognition for Percentage-of-Completion Method | |||||||||
For the complete wagering and lottery systems, the Company recognizes revenue by using the percentage-of-completion method when the contracts for complete systems fulfill the following criteria: | |||||||||
1. | Contract performance extends over long periods of time; | ||||||||
2. | The software portion involves significant production, modification or customization; | ||||||||
3. | Reasonably dependable estimates can be made on the progress towards completion, contract revenues and contract costs; and | ||||||||
4. | Each element is essential to the functionality of the other elements of the contracts. | ||||||||
Under the percentage-of-completion method, sales and estimated gross profits are recognized as work progresses. Progress toward completion is measured by the ratio of costs incurred to total estimated costs. Revenue and gross profit may be adjusted prospectively for revisions in the estimated total contract costs. If the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is recorded in the period in which it becomes evident. The total estimated loss includes all costs allocable to the specific contract. | |||||||||
In addition to the software portion of a complete system, the Company develops software for its customers in accordance with the specifications stipulated in a software supply contract. Generally, these contracts are related to additional features or modules to be added to the application software that the Company has previously developed for its customers. Each software contract is reviewed individually to determine the appropriate basis of recognizing revenue. | |||||||||
Deferred Revenues and Deferred Cost of Revenues | ' | ||||||||
Deferred Revenues and Deferred Cost of Revenues | |||||||||
Deferred revenues of approximately $470,000 and $5.4 million as of April 30, 2014 and 2013, respectively, represent prepayments for products and services related to lottery terminals, use of the OpenElect® and PBC voting systems and other software and technical support services. Deferred cost of revenues of approximately $3,000 and $132,000 as of April 30, 2014 and 2013, respectively, consist of direct costs associated with lottery terminals, software support and manufacture of voting systems. The Company will recognize revenues and related cost of revenues upon fulfillment of the prescribed criteria for revenue recognition. | |||||||||
Allowance for Doubtful Accounts | ' | ||||||||
Allowance for Doubtful Accounts | |||||||||
The Company determines its allowance for doubtful accounts by considering a number of factors: | |||||||||
1. | Length of time trade accounts receivable are past due; | ||||||||
2. | The Company’s previous loss history; | ||||||||
3. | The customer’s current ability to pay its obligations; | ||||||||
4. | Known specific issues or disputes which exist as of the balance sheet date; and | ||||||||
5. | The condition of the general economy and industry as a whole. | ||||||||
Based on its evaluation, the Company determined that no additional allowance was required as of April 30, 2014. The Company maintained an allowance for doubtful accounts of $75,000 as of April 30, 2014 and 2013. | |||||||||
Warranty Reserves | ' | ||||||||
Warranty Reserves | |||||||||
Estimated warranty costs are accrued as revenues are recognized. Included in the warranty cost accruals are costs for basic warranties on products sold. A summary of product warranty reserve activity for the fiscal years ended April 30, 2014 and 2013 is as follows: | |||||||||
(Amounts in thousands) | |||||||||
Balance at April 30, 2012 | $ | 169 | |||||||
Additional reserves | 153 | ||||||||
Charges incurred | (183 | ) | |||||||
Balance at April 30, 2013 | 139 | ||||||||
Additional reserves | 174 | ||||||||
Charges incurred | (125 | ) | |||||||
Balance at April 30, 2014 | $ | 188 | |||||||
Warranty reserves are based on historical trends and are adjusted periodically to reflect actual experience. Customers do not have a right to return, except for defective products. The most recent inventory cost is used to determine the value of potential warranty costs. Estimated reserves for warranty obligations are accrued as follows: | |||||||||
1. | Contracts – Contract warranties are specific to the individual contracts. Estimated reserves for warranty obligations are accrued as revenue is recognized. Hardware and software components may be warranted separately: | ||||||||
a. | Hardware – The warranty phase for terminals or terminal kits commences upon shipment and can extend from six months to twelve months depending on the specific contract terms. | ||||||||
b. | Software – The warranty phase typically represents a six to twelve-month period of time after delivery, as defined by the specific contract terms. | ||||||||
2. | Spares – Terminal replacement parts are warranted to be free from defects for 90 days from the date of shipment. Based on historical experience, warranty costs for spares have been immaterial. | ||||||||
3. | Other – Specific provisions have been made to cover a small number of particular replacement parts for specific customers. | ||||||||
Income Taxes and Valuation Allowance | ' | ||||||||
Income Taxes and Valuation Allowance | |||||||||
The Company recognizes tax benefits associated with uncertain tax positions when, in management’s assessment, it is more likely than not that the positions will be sustained upon examination by a taxing authority. For tax positions that meet the more likely than not recognition threshold, the Company measures the tax benefits as the largest amount that the Company evaluates to have a greater than 50% likelihood of being realized upon ultimate settlement. The Company reviewed its tax positions and determined that an adjustment to the tax provision is not considered necessary nor is a reserve for income taxes required. | |||||||||
The Company accounts for income taxes pursuant to the asset and liability method. This requires deferred income tax assets and liabilities to be computed annually for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the temporary differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||||||||
Foreign Currency Fluctuation | ' | ||||||||
Foreign Currency Fluctuation | |||||||||
The Company’s reporting currency is the U.S. dollar. Sales are denominated almost exclusively in U.S. dollars. Occasionally, sales have been effected in foreign currencies. Fluctuations in exchange rates from reporting period to reporting period between various foreign currencies and the U.S. dollar may have an impact on revenue and expense. Such effect may be material in any individual reporting period. No material foreign currency transactions occurred during the years ended April 30, 2014 and 2013. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost or the current estimated market values. Cost is determined using the first-in, first-out method. Inventories consisted of the following: | |||||||||
April 30, | April 30, | ||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Raw materials and subassemblies | $ | 1,082 | $ | 2,872 | |||||
Work-in-process | 13 | 33 | |||||||
Finished goods | 303 | 760 | |||||||
$ | 1,398 | $ | 3,665 | ||||||
Equipment, Furniture and Fixtures | ' | ||||||||
Equipment, Furniture and Fixtures | |||||||||
Equipment, furniture and fixtures are carried at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which approximate three to seven years. Leasehold improvements are amortized over the shorter of the useful lives of the assets or the lease term. The Company evaluates the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, or when the net book value of such assets exceeds the future undiscounted cash flow attributed to such assets. At April 30, 2014 and 2013, and during the years ended April 30, 2014 and 2013, no indicators of impairment were identified. | |||||||||
Net equipment, furniture and fixtures consisted of the following: | |||||||||
April 30, | April 30, | ||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Plant and machinery | $ | 662 | $ | 757 | |||||
Computer equipment | 1,741 | 1,662 | |||||||
Leasehold improvement | 201 | 201 | |||||||
Furniture, fixtures and equipment | 96 | 96 | |||||||
Construction in progress | 85 | 25 | |||||||
2,785 | 2,741 | ||||||||
Accumulated depreciation and amortization | (2,173 | ) | (2,168 | ) | |||||
Net equipment, furniture and fixtures | $ | 612 | $ | 573 | |||||
Net Income per Share | ' | ||||||||
Net Income per Share | |||||||||
Basic net income per share was based on the weighted average number of shares outstanding during April 30, 2014 and 2013. | |||||||||
There were no outstanding options or other dilutive securities at April 30, 2014 and 2013. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with a maturity of three months or less at the purchase date to be cash equivalents. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||
Product warranty reserve activity | ' | ||||||||
Estimated warranty costs are accrued as revenues are recognized. Included in the warranty cost accruals are costs for basic warranties on products sold. A summary of product warranty reserve activity for the fiscal years ended April 30, 2014 and 2013 is as follows: | |||||||||
(Amounts in thousands) | |||||||||
Balance at April 30, 2012 | $ | 169 | |||||||
Additional reserves | 153 | ||||||||
Charges incurred | (183 | ) | |||||||
Balance at April 30, 2013 | 139 | ||||||||
Additional reserves | 174 | ||||||||
Charges incurred | (125 | ) | |||||||
Balance at April 30, 2014 | $ | 188 | |||||||
Inventories | ' | ||||||||
Inventories are stated at the lower of cost or the current estimated market values. Cost is determined using the first-in, first-out method. Inventories consisted of the following: | |||||||||
April 30, | April 30, | ||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Raw materials and subassemblies | $ | 1,082 | $ | 2,872 | |||||
Work-in-process | 13 | 33 | |||||||
Finished goods | 303 | 760 | |||||||
$ | 1,398 | $ | 3,665 | ||||||
Net equipment, furniture and fixtures | ' | ||||||||
Net equipment, furniture and fixtures consisted of the following: | |||||||||
April 30, | April 30, | ||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Plant and machinery | $ | 662 | $ | 757 | |||||
Computer equipment | 1,741 | 1,662 | |||||||
Leasehold improvement | 201 | 201 | |||||||
Furniture, fixtures and equipment | 96 | 96 | |||||||
Construction in progress | 85 | 25 | |||||||
2,785 | 2,741 | ||||||||
Accumulated depreciation and amortization | (2,173 | ) | (2,168 | ) | |||||
Net equipment, furniture and fixtures | $ | 612 | $ | 573 | |||||
BUSINESS_SEGMENTS_GEOGRAPHIC_R1
BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS (Tables) | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS [Abstract] | ' | ||||||||||||
Segment information | ' | ||||||||||||
The Company’s segment information is presented below (in thousands): | |||||||||||||
As of and for the Year Ended April 30, 2014 | |||||||||||||
Gaming | Voting | Totals | |||||||||||
Business | Business | ||||||||||||
Total revenues | $ | 18,695 | $ | 4,003 | $ | 22,698 | |||||||
Income from operations | 4,793 | 80 | 4,873 | ||||||||||
Depreciation and amortization | 105 | 83 | 188 | ||||||||||
Segment assets | 11,090 | 2,345 | 13,435 | ||||||||||
As of and for the Year Ended April 30, 2013 | |||||||||||||
Gaming | Voting | Totals | |||||||||||
Business | Business | ||||||||||||
Total revenues | $ | 7,396 | $ | 3,175 | $ | 10,571 | |||||||
Income from operations | 1,502 | 49 | 1,551 | ||||||||||
Depreciation and amortization | 112 | 69 | 181 | ||||||||||
Segment assets | 14,886 | 1,948 | 16,834 | ||||||||||
Revenues by geographic area | ' | ||||||||||||
Geographic Revenues | |||||||||||||
Revenues by geographic area are as follows (in thousands): | |||||||||||||
Years Ended | |||||||||||||
April 30, | |||||||||||||
Customer Location | 2014 | 2013 | |||||||||||
Asia | $ | 11,911 | $ | 4,197 | |||||||||
North America | 4,005 | 3,178 | |||||||||||
Europe | 6,782 | 3,196 | |||||||||||
$ | 22,698 | $ | 10,571 | ||||||||||
Major customers | ' | ||||||||||||
Major Customers | |||||||||||||
30-Apr-14 | 30-Apr-13 | ||||||||||||
Revenue: | |||||||||||||
From unrelated customers | One customer from the gaming segment accounted for 30% of total revenue and one customer from the voting segment accounted for 10% of total revenue. | One customer from the gaming segment accounted for 30% of total revenue and one customer from the voting segment accounted for 22% of total revenue. | |||||||||||
From related customers | One customer from the gaming segment accounted for 52% of total revenue. | Two customers from the gaming segment accounted for 38% of total revenue or 28% and 10% individually. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
Provision of income taxes | ' | ||||||||
The provision (benefit) for income taxes is as follows (in thousands): | |||||||||
Years Ended April 30, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 100 | $ | 5 | |||||
State | 127 | 3 | |||||||
227 | 8 | ||||||||
Deferred: | |||||||||
Federal | 1,327 | (1,327 | ) | ||||||
State | 228 | (228 | ) | ||||||
Total | $ | 1,782 | $ | (1,547 | ) | ||||
Reconciliation of the expected income tax provision or benefit at the statutory federal income tax rate to the actual provision or benefit | ' | ||||||||
The following is a reconciliation of the expected income tax benefit or provision at the statutory federal income tax rate with the actual provision or benefit: | |||||||||
Years Ended April 30, | |||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Expected federal income tax provision | $ | 1,658 | $ | 528 | |||||
State taxes, net of federal benefit | 31 | 2 | |||||||
Permanent differences | 12 | 11 | |||||||
Change in valuation allowance | 71 | (2,088 | ) | ||||||
Other | 10 | - | |||||||
$ | 1,782 | $ | (1,547 | ) | |||||
Significant components of deferred tax assets | ' | ||||||||
Significant components of the Company’s deferred tax assets are as follows: | |||||||||
April 30, | April 30, | ||||||||
(Amounts in thousands) | 2014 | 2013 | |||||||
Deferred tax assets: | |||||||||
Net operating loss, general business credit and AMT carryforwards | $ | 3,767 | $ | 5,531 | |||||
Deferred revenue | 85 | 85 | |||||||
Reserves and accruals | 1,142 | 1,188 | |||||||
Other | 95 | - | |||||||
5,089 | 6,804 | ||||||||
Deferred tax liabilities: | |||||||||
Other | (26 | ) | (52 | ) | |||||
Net deferred tax assets before valuation allowance | 5,063 | 6,752 | |||||||
Valuation allowance | (5,063 | ) | (5,197 | ) | |||||
Net deferred taxes | $ | - | $ | 1,555 | |||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||
Apr. 30, 2014 | |||||
LEASES [Abstract] | ' | ||||
Future minimum lease payments for all operating leases | ' | ||||
Future minimum lease payments for all operating leases are as follows (in thousands): | |||||
For Fiscal Year Ending April 30, | Minimum Lease Payments | ||||
2015 | $ | 176 | |||
2016 | 105 | ||||
$ | 281 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Description of the Business [Abstract] | ' | ' |
Lead time of deposit upon contract signing before delivery of hardware begins, maximum | '6 months | ' |
Related Party Transaction [Line Items] | ' | ' |
Reverse stock split | '9,245,317-for-1 | ' |
Common shares, shares outstanding (in shares) | 12,963,000 | 12,963,000 |
Cash paid for fractional share owned (in dollars per share) | $1.33 | ' |
Period after which reincorporation and reverse stock split will be effective | '20 days | ' |
Revenue Recognition for Arrangements with Multiple Deliverables [Abstract] | ' | ' |
Period of service of software licenses | '1 year | ' |
Deferred Revenues and Deferred Cost of Revenues [Abstract] | ' | ' |
Deferred revenues | $470,000 | $5,451,000 |
Deferred cost of revenue | 3,000 | 132,000 |
Allowance for Doubtful Accounts [Abstract] | ' | ' |
Allowance for doubtful accounts | 75,000 | 75,000 |
Product warranty reserve activity [Roll Forward] | ' | ' |
Balance, beginning of period | 139,000 | 169,000 |
Additional reserves | 174,000 | 153,000 |
Charges incurred | -125,000 | -183,000 |
Balance, end of period | 188,000 | 139,000 |
Summary of inventories [Abstract] | ' | ' |
Raw materials and subassemblies | 1,082,000 | 2,872,000 |
Work-in-process | 13,000 | 33,000 |
Finished Goods | 303,000 | 760,000 |
Total | 1,398,000 | 3,665,000 |
Net equipment, furniture and fixtures [Abstract] | ' | ' |
Gross equipment, furniture and fixtures | 2,785,000 | 2,741,000 |
Accumulated depreciation and amortization | -2,173,000 | -2,168,000 |
Net equipment, furniture and fixtures | 612,000 | 573,000 |
Plant and Machinery [Member] | ' | ' |
Net equipment, furniture and fixtures [Abstract] | ' | ' |
Gross equipment, furniture and fixtures | 662,000 | 757,000 |
Computer Equipment [Member] | ' | ' |
Net equipment, furniture and fixtures [Abstract] | ' | ' |
Gross equipment, furniture and fixtures | 1,741,000 | 1,662,000 |
Leasehold Improvement [Member] | ' | ' |
Net equipment, furniture and fixtures [Abstract] | ' | ' |
Gross equipment, furniture and fixtures | 201,000 | 201,000 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Net equipment, furniture and fixtures [Abstract] | ' | ' |
Gross equipment, furniture and fixtures | 96,000 | 96,000 |
Construction in Progress [Member] | ' | ' |
Net equipment, furniture and fixtures [Abstract] | ' | ' |
Gross equipment, furniture and fixtures | 85,000 | 25,000 |
Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment, furniture and fixtures, estimated useful lives | '3 years | ' |
Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment, furniture and fixtures, estimated useful lives | '7 years | ' |
Hardware [Member] | Minimum [Member] | ' | ' |
Product Information [Line Items] | ' | ' |
Product warranty period | '6 months | ' |
Hardware [Member] | Maximum [Member] | ' | ' |
Product Information [Line Items] | ' | ' |
Product warranty period | '12 months | ' |
Software [Member] | Minimum [Member] | ' | ' |
Product Information [Line Items] | ' | ' |
Product warranty period | '6 months | ' |
Software [Member] | Maximum [Member] | ' | ' |
Product Information [Line Items] | ' | ' |
Product warranty period | '12 months | ' |
Spares [Member] | ' | ' |
Product Information [Line Items] | ' | ' |
Product warranty period | '90 days | ' |
BLM [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Common shares, shares outstanding (in shares) | 9,245,317 | ' |
Outstanding voting stock held by Berjaya Lottery Management (H.K.) Ltd. (in hundredths) | 71.30% | ' |
Summary of inventories [Abstract] | ' | ' |
Total | $0 | $0 |
BUSINESS_SEGMENTS_GEOGRAPHIC_R2
BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Segment | ||
BUSINESS SEGMENTS, GEOGRAPHIC REVENUES, MAJOR CUSTOMERS AND MAJOR VENDORS [Abstract] | ' | ' |
Number of operating segments | 2 | ' |
Segment information [Abstract] | ' | ' |
Total revenues | $22,698 | $10,571 |
Income from operations | 4,873 | 1,551 |
Depreciation and amortization | 188 | 181 |
Segment assets | 13,435 | 16,834 |
Revenues by geographic area [Abstract] | ' | ' |
Revenues | 22,698 | 10,571 |
Supplier Concentration Risk [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Number of vendors | 3 | 5 |
Supplier Concentration Risk [Member] | Vendor [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | 47.00% | 73.00% |
Supplier Concentration Risk [Member] | Vendor One [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | 20.00% | 18.00% |
Supplier Concentration Risk [Member] | Vendor Two [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | 14.00% | 18.00% |
Supplier Concentration Risk [Member] | Vendor Three [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | 13.00% | 15.00% |
Supplier Concentration Risk [Member] | Vendor Four [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | ' | 12.00% |
Supplier Concentration Risk [Member] | Vendor Five [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | ' | 10.00% |
Asia [Member] | ' | ' |
Segment information [Abstract] | ' | ' |
Total revenues | 11,911 | 4,197 |
Revenues by geographic area [Abstract] | ' | ' |
Revenues | 11,911 | 4,197 |
North America [Member] | ' | ' |
Segment information [Abstract] | ' | ' |
Total revenues | 4,005 | 3,178 |
Revenues by geographic area [Abstract] | ' | ' |
Revenues | 4,005 | 3,178 |
Europe [Member] | ' | ' |
Segment information [Abstract] | ' | ' |
Total revenues | 6,782 | 3,196 |
Revenues by geographic area [Abstract] | ' | ' |
Revenues | 6,782 | 3,196 |
Gaming Business [Member] | Operating Segments [Member] | ' | ' |
Segment information [Abstract] | ' | ' |
Total revenues | 18,695 | 7,396 |
Income from operations | 4,793 | 1,502 |
Depreciation and amortization | 105 | 112 |
Segment assets | 11,090 | 14,886 |
Revenues by geographic area [Abstract] | ' | ' |
Revenues | 18,695 | 7,396 |
Gaming Business [Member] | Revenue [Member] | Customer Concentration Risk [Member] | From Unrelated Customers [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Number of major customers | 1 | 1 |
Concentration risk, percentage (in hundredths) | 30.00% | 30.00% |
Gaming Business [Member] | Revenue [Member] | Customer Concentration Risk [Member] | From Related Customers [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Number of major customers | 1 | 2 |
Concentration risk, percentage (in hundredths) | 52.00% | 38.00% |
Gaming Business [Member] | Revenue [Member] | Customer Concentration Risk [Member] | Related Customer One [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | ' | 28.00% |
Gaming Business [Member] | Revenue [Member] | Customer Concentration Risk [Member] | Related Customer Two [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Concentration risk, percentage (in hundredths) | ' | 10.00% |
Voting Business [Member] | Operating Segments [Member] | ' | ' |
Segment information [Abstract] | ' | ' |
Total revenues | 4,003 | 3,175 |
Income from operations | 80 | 49 |
Depreciation and amortization | 83 | 69 |
Segment assets | 2,345 | 1,948 |
Revenues by geographic area [Abstract] | ' | ' |
Revenues | $4,003 | $3,175 |
Voting Business [Member] | Revenue [Member] | Customer Concentration Risk [Member] | From Unrelated Customers [Member] | ' | ' |
Major customers [Abstract] | ' | ' |
Number of major customers | 1 | 1 |
Concentration risk, percentage (in hundredths) | 10.00% | 22.00% |
CREDIT_RISK_Details
CREDIT RISK (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 |
FinancialInstitution | |||
CREDIT RISK [Abstract] | ' | ' | ' |
Cash and cash equivalents | $10,444,000 | $7,259,000 | $2,783,000 |
Money market funds | 2,800,000 | ' | ' |
FDIC coverage limit | 250,000 | ' | ' |
Other cash balances | $7,600,000 | ' | ' |
Number of financial institutions in which entity maintains its other cash balances | 3 | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Current: | ' | ' |
Federal | $100,000 | $5,000 |
State | 127,000 | 3,000 |
Current Income Tax Expense (Benefit), Total | 227,000 | 8,000 |
Deferred: | ' | ' |
Federal | 1,327,000 | -1,327,000 |
State | 228,000 | -228,000 |
Total | 1,782,000 | -1,547,000 |
Reconciliation of the expected income tax provision or benefit at the statutory federal income tax rate to the actual provision or benefit [Abstract] | ' | ' |
Expected federal income tax provision | 1,658,000 | 528,000 |
State taxes, net of federal benefit | 31,000 | 2,000 |
Permanent differences | 12,000 | 11,000 |
Change in valuation allowance | 71,000 | -2,088,000 |
Other | 10,000 | 0 |
Provision for (benefit of) income taxes | 1,782,000 | -1,547,000 |
Deferred tax assets [Abstract] | ' | ' |
Net operating loss, general business credit and AMT carryforwards | 3,767,000 | 5,531,000 |
Deferred revenue | 85,000 | 85,000 |
Reserves and accruals | 1,142,000 | 1,188,000 |
Other | 95,000 | 0 |
Total | 5,089,000 | 6,804,000 |
Deferred tax liabilities [Abstract] | ' | ' |
Other | -26,000 | -52,000 |
Net deferred tax assets before valuation allowance | 5,063,000 | 6,752,000 |
Valuation allowance | -5,063,000 | -5,197,000 |
Net deferred taxes | 0 | 1,555,000 |
Tax Credit Carryforward [Line Items] | ' | ' |
Minimum percentage of cumulative change in ownership limits federal credit and net operating loss carryforwards (in hundredths) | 50.00% | ' |
Period over which cumulative change in ownership limits federal credit and net operating loss carryforwards | '3 years | ' |
Interest and penalties | 0 | 0 |
Federal [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 9,500,000 | ' |
Net operating loss carryforwards, expiration dates | 31-Dec-20 | ' |
Federal [Member] | Research and Development Credit Carryforwards [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax credit carryforwards | 284,000 | ' |
Tax credit carryforwards, expiration date | 31-Dec-20 | ' |
Federal [Member] | Alternative Minimum Tax Credit Carryforward [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax credit carryforwards | $237,000 | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Jan. 11, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | |
BLM [Member] | BLM [Member] | Sports Toto Malaysia Sdn. Bhd. [Member] | Sports Toto Malaysia Sdn. Bhd. [Member] | Sports Toto Malaysia Sdn. Bhd. [Member] | Sports Toto Malaysia Sdn. Bhd. [Member] | Sports Toto Malaysia Sdn. Bhd. [Member] | Sports Toto Malaysia Sdn. Bhd. [Member] | PGMC [Member] | PGMC [Member] | PGMC [Member] | PGMC [Member] | Natural Avenue Sdn. Bhd. [Member] | Natural Avenue Sdn. Bhd. [Member] | Natural Avenue Sdn. Bhd. [Member] | Natural Avenue Sdn. Bhd. [Member] | Natural Avenue Sdn. Bhd. [Member] | Natural Avenue Sdn. Bhd. [Member] | Sports Toto Computers Sdn. Bhd. [Member] | Sports Toto Computers Sdn. Bhd. [Member] | |||
Lottery Products and Support Services [Member] | Lottery Products and Support Services [Member] | Contract Deliverables and Sale of Support Services [Member] | Lottery Products [Member] | Lottery Products [Member] | Lottery Products and Support Services [Member] | Lottery Products and Support Services [Member] | Lottery Product Licensing [Member] | Lottery Product Licensing [Member] | Support Services and Licensing [Member] | Support Services and Licensing [Member] | ||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from related party | $11,900,000 | $4,200,000 | $0 | $0 | ' | ' | ' | $11,700,000 | ' | $3,000,000 | ' | ' | $72,000 | $1,100,000 | ' | ' | ' | ' | $142,000 | $142,000 | ' | ' |
Sales revenue, related party, percentage (in hundredths) | 52.00% | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable from related parties | 11,000 | 411,000 | 0 | 0 | 0 | 410,000 | ' | ' | ' | ' | 0 | 0 | ' | ' | 11,000 | 1,000 | ' | ' | ' | ' | ' | ' |
Outstanding voting stock held by Berjaya Lottery Management (H.K.) Ltd. (in hundredths) | ' | ' | 71.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payable to parent | 152,000 | 202,000 | 152,000 | 202,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories | 1,398,000 | 3,665,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | 470,000 | 5,451,000 | ' | ' | ' | ' | 11,000,000 | 10,000 | 3,300,000 | ' | 0 | 0 | ' | ' | ' | ' | 4,000 | 4,000 | ' | ' | ' | ' |
Services incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $203,000 | $196,000 |
LEASES_Details
LEASES (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
LEASES [Abstract] | ' | ' |
Lease expiration date | 30-Nov-15 | ' |
Monthly base rent payments for year one | $13,900 | ' |
Monthly base rent payments for year two | 14,400 | ' |
Monthly base rent payments for year three | 15,000 | ' |
Period of free rent | '1 month | ' |
Future minimum lease payments for all operating leases [Abstract] | ' | ' |
2015 | 176,000 | ' |
2016 | 105,000 | ' |
Total future minimum lease payments | 281,000 | ' |
Rent expense | $174,000 | $170,000 |
EMPLOYEE_401k_PLANS_Details
EMPLOYEE 401(k) PLANS (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
EMPLOYEE 401(k) PLANS [Abstract] | ' | ' |
Maximum voluntarily tax deferred contribution by employee (in hundredths) | 15.00% | ' |
Maximum annual contribution by employer (in hundredths) | 5.00% | ' |
Contributions by employer | $0 | $0 |