Annual report pursuant to Section 13 and 15(d)

Note 12 - Income Taxes (Tables)

v3.21.1
Note 12 - Income Taxes (Tables)
12 Months Ended
Oct. 31, 2020
Notes Tables  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
   

Successor

   

 

 
          (As Restated)     Predecessor  

(in thousands)

  Year Ended October 31, 2020     December 6, 2018 through October 31, 2019     November 1, 2018 through December 5, 2018  

United States

  $ (49,688 )   $ (21,366 )   $ (26,974 )

Foreign

    (16,540 )     1,660       207  

Total

  $ (66,228 )   $ (19,706 )   $ (26,767 )
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
   

Successor

   

Predecessor

 

(in thousands)

  Year Ended October 31, 2020     December 6, 2018 through October 31, 2019     November 1, 2018 through December 5, 2018  

Current tax provision (benefit):

                       

Federal

  $ (4,299 )   $ -     $ -  

Foreign

    (9 )     1,108       134  

State and local

    361       409       31  

Total current tax provision (benefit)

    (3,947 )     1,517       165  
                         

Deferred tax provision (benefit):

                       

Federal

  $ 759     $ (3,317 )   $ (3,474 )

Foreign

    126       (571 )     (86 )

State and local

    (1,914 )     (932 )     (797 )

Total deferred tax benefit

    (1,029 )     (4,820 )     (4,357 )
                         

Net benefit for income taxes

  $ (4,977 )   $ (3,303 )   $ (4,192 )
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
      (As Restated)        
   

Successor

   

Predecessor

 

(in thousands)

  Year Ended October 31, 2020     December 6, 2018 through October 31, 2019     November 1, 2018 through December 5, 2018  

Income tax benefit per federal statutory rate of 21% for each period

  $ (13,967 )   $ (4,140 )   $ (5,622 )

State income taxes, net of federal deduction

    (150 )     (468 )     (635 )

Foreign rate differential

    108       (48 )     (6 )

Meals and entertainment

    127       187       24  

Transaction costs

    -       18       1,414  

Change in deferred tax rate

    (1,654 )     (95 )     30  

Stock-based compensation

    105       -       6  

Equity contribution

    -       127       -  

Nontaxable interest income net of foreign income inclusions

    717       (257 )     (62 )

Deferred tax on undistributed foreign earnings

    (255 )     236       68  

Impact of tax reform in the U.K. (see discussion below)

    859       -       -  

Deferred finance costs

    -       -       586  
Goodwill impairment     9,812       -       -  
Impact of US tax reform from CARES Act     (1,381 )     -       -  
Settlement with related party     420       -       -  
Change in fair value of warrant liabilities     55       1,363       -  

Other

    227       (226 )     5  

Income tax benefit

  $ (4,977 )   $ (3,303 )   $ (4,192 )
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(in thousands)

  Year Ended October 31, 2020     December 6, 2018 through October 31, 2019  

Deferred tax assets:

               

Accrued insurance reserve

  $ 1,637     $ 1,334  

Accrued sales and use tax

    75       77  

Accrued bonuses and vacation

    1,521       353  
Accrued payroll tax     676       -  

Foreign tax credit carryforward

    80       80  
State tax credit carryforward     70       -  

Interest expense carryforward

    4,089       9,181  

Stock-based compensation

    3,127       893  

Prepaid expenses

    -       4  

Other

    335       435  

Net operating loss carryforward

    10,308       17,385  

Total deferred tax assets

  $ 21,918     $ 29,742  

Valuation allowance

    (63 )     (63 )

Net deferred tax assets

  $ 21,855     $ 29,679  
                 

Deferred tax liabilities:

               

Intangible assets

    (27,504 )     (36,593 )

Property and equipment

    (61,761 )     (61,608 )

Prepaid expenses

    (128 )     -  

Unremitted foreign earnings

    (481 )     (527 )

Total net deferred tax liabilities

    (89,874 )     (98,728 )
                 

Net deferred tax liabilities

  $ (68,019 )   $ (69,049 )
Summary of Operating Loss and Tax Credit Carryforwards [Table Text Block]

(in millions)

 

Balance as of October 31, 2020

 

Year that Carryforwards Begin to Expire

 

Federal net operating loss carryforwards

  $ 42.6    

N/A – Carried forward indefinitely

 

State net operating loss carryforwards

    30.4       2023  

Foreign tax carryforwards

    0.1       2026  

State credit carryforwards

    0.1       2023  

Interest expense carryforwards

    15.8    

N/A – Carried forward indefinitely

 

Total tax carryforwards

  $ 89.0          
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
   

Successor

   

Predecessor

 

(in thousands)

  Year Ended October 31, 2020     December 6, 2018 through October 31, 2019     November 1, 2018 through December 5, 2018  

Balance, beginning of year

  $ 1,726     $ -     $ -  

Increase in current year position

    -       1,726       -  

Increase in prior year position

    -       -       -  

Decrease in prior year position

    (154 )     -       -  

Lapse in statute of limitations

    -       -       -  

Balance, end of year

  $ 1,572     $ 1,726     $ -