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Other assets increased from April 30, 2021 to July 31, 2021 by $146,000 primarily due to an increase in prepaid stock compensation as a result of restricted stock grants awarded in July 2021.
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Deferred income taxes, net decreased from April 30, 2021 to July 31, 2021 by $488,000 primarily due to a reduction in federal net operating loss carry forwards.
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Accounts payable and accrued expenses decreased from April 30, 2021 to July 31, 2021 by $758,000 primarily due to payment of accounts payable and a reduction in customer deposits.
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Taxes payable, net decreased from April 30, 2021 to July 31, 2021 by $66,000 in connection with finalization of the Company’s tax return filings.
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Accrued pension costs of the Company’s frozen defined benefit pension plan (representing the Company’s unfunded pension liability) decreased from April 30, 2021 to July 31, 2021 by $221,000 primarily due to favorable investment results of plan assets. The Company recorded, net of tax, other comprehensive income of $66,000 for the three months ended July 31, 2021 and $90,000 for the three months ended July 31, 2020, reflecting the change in accrued pension costs during each period net of the related deferred tax and unrecognized prepaid pension amounts.
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Financing Activities
Notes payable, net increased from $3,448,000 as of April 30, 2021 to $6,377,000 as of July 31, 2021, primarily due to additional borrowings to fund land acquisition and development activities partially offset by repayments made on outstanding borrowings. Refer to Note 6 of the notes to the consolidated financial statements included in this report on Form 10-Q and Notes 6 and 19 to the consolidated financial statements contained in the 2021 Form 10-K for additional detail about notes payable.
Investing Activities
Capital expenditures were less than $1,000 for the three months ended July 31, 2021 and $3,000 for the three months ended July 31, 2020 primarily for technology upgrades in both periods.
Statement of Forward-Looking Information
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. The Company and its representatives may from time to time make written or oral statements that are “forward-looking”, including statements contained in this report and other filings with the Securities and Exchange Commission, reports to the Company’s shareholders and news releases. All statements that express expectations, estimates, forecasts or projections are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, other written or oral statements, which constitute forward-looking statements, may be made by or on behalf of the Company. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “projects”, “forecasts”, “may”, “should”, variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and contingencies that are difficult to predict. All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are qualified by the cautionary statements in this section. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in or suggested by such forward-looking statements.
The forward-looking statements contained in this report include, but are not limited to, statements regarding (1) the Company’s ability to finance its future working capital, land development, homebuilding and capital expenditure needs, (2) the Company’s expected liquidity sources, including the amount of principal available for borrowing under the Company’s financing arrangements, (3) anticipated future development of the Company’s real estate holdings, (4) the timing of reimbursements under, and the general effectiveness of, the Company’s public improvement districts and private infrastructure reimbursement covenants, (5) the availability of bank financing for projects, (6) the utilization of existing bank financing, (7) the backlog of homes under contract and in production and the dollar amount of expected sales revenue when such homes are closed, (8) the effect of recent accounting pronouncements,