Taxes (Tables)

12 Months Ended

Apr. 30, 2026

The components of (loss) income before income taxes, disaggregated between domestic and foreign operations, are as follows:


	Successor		Predecessor



	Period from June 7, 2025 through April 30, 2026		Period from May 1, 2025 through June 6, 2025		Year Ended April 30, 2025
United States	$	240,610	$	—	$	—
Foreign
Canada	(1,549)		21		707
Cayman Islands	(124,188)		—		—

Total foreign	(125,737)		21		707
Income before income tax expense (benefit)	$	114,873	$	21	$	707

The components of income tax expense (benefit) consist of the following:


	Successor		Predecessor



	Period from June 7, 2025 through April 30, 2026		Period from May 1, 2025 through June 6, 2025		Year Ended April 30, 2025
Current
Federal	$	—	$	—	$	—
State	—		—		—
Foreign	426		—		263

Total current	426		—		263

Deferred
Federal	—		—		—
State	—		—		—
Foreign	(798)		2		(126)

Total deferred	(798)		2		(126)
Total income tax expense (benefit)	$	(372)	$	2	$	137

A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is presented below:


			Successor					Predecessor



	Period from June 7, 2025 through April 30, 2026	Period from May 1, 2025 through June 6, 2025					Year Ended April 30, 2025
			$		%			$		%		$		%
Income before income tax expense (benefit)			$	114,873				$	21			$	707
U.S. federal statutory income tax rate			$	24,123	21.0	%		$	4	21.0	%	$	149	21.0	%
State and local income tax, net of federal benefit			—		—			—		—		—		—

Canada
Statutory rate difference between Canada and the United States			(93)		(0.1)			1		6.0		42		6.0
Other permanent differences			47		—			(3)		(16.3)		(54)		(7.6)
Cayman Islands
Statutory rate difference between Cayman Islands and the United States			26,079		22.7					—				—



Changes in valuation allowances			4,084		3.6			—		—		—		—

Warrant valuation			(59,413)		(51.7)			—		—		—		—
Other			4,801		4.2			—		—		—		—



Income tax expense (benefit) and effective tax rate			$	(372)	(0.3)			$	2	10.7		$	137	19.4

Significant components of the Company's deferred tax assets and deferred tax liabilities are as follows:


	Successor		Predecessor
	April 30, 2026		April 30, 2025

Deferred tax assets:
Net operating loss carryforwards	$	12,201	$	—
Stock-based compensation	291		—
Accrued expenses and reserves	96		—
Operating lease liabilities	13		514


Other	770		151

Total deferred tax assets	13,371		665
Less: valuation allowance	(12,571)		—
Net deferred tax assets	800		665
Deferred tax liabilities:
Intangible assets	(1,291)		—


Right-of-use assets	—		(510)

Total deferred tax liabilities	(1,291)		(510)
Net deferred tax asset (liability)	$	(491)	$	155

Income taxes paid by the Company, net of refunds received, disaggregated by federal (national), state, and foreign jurisdiction, are as follows:


	Successor		Predecessor



	Period from June 7, 2025 through April 30, 2026		Period from May 1, 2025 through June 6, 2025		Year Ended April 30, 2025
United States
Federal	$	—	$	—	$	—
State and local	—		—		—

Total United States	—		—		—
Foreign
Canada	(539)		—		285
Cayman Islands(A)	n.a.		n.a.		n.a.

Total foreign	(539)		—		285
Total income taxes paid, net of refunds received	$	(539)	$	—	$	285

A.The Company did not pay any income taxes as its Cayman Islands subsidiary is not subject to income taxes.

The following tax years remain subject to examination by the relevant taxing authorities:

Open Tax Years Ended
April 30,

Jurisdiction

From

Through

United States

Federal

2022

2026

State

2021

2026

Canada(A)

2022

2026

Cayman Islands(B)

n.a.

A.Includes both federal and provincial tax years.

B.No income taxes assessed in jurisdiction

CEA Industries Inc. 10-K