Concrete Pumping Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Note 12 - Income Taxes (Tables)

12 Months Ended

Oct. 31, 2021

(in thousands)	*Year Ended October 31, 2021*			*Year Ended October 31, 2020*
Current tax provision (benefit):
Federal	$	-		$	(4,299	)
Foreign		(375	)		(9	)
State and local		470			361
Total current tax provision (benefit)		95			(3,947	)

Deferred tax provision (benefit):
Federal	$	483		$	759
Foreign		2,134			126
State and local		(70	)		(1,914	)
Total deferred tax benefit		2,547			(1,029	)

Net provision (benefit) for income taxes	$	2,642		$	(4,977	)

(in thousands)	*Year Ended October 31, 2021*			*Year Ended October 31, 2020*
Income tax benefit per federal statutory rate of 21% for each period	$	(2,611	)	$	(13,967	)
State income taxes, net of federal deduction		193			(150	)
Change in deferred tax rate		(92	)		(1,654	)
Warrant fair value change		2,078			55
Nontaxable interest income net of foreign income inclusions		-			717
Deferred tax on undistributed foreign earnings		505			(255	)
Impact of tax reform in the U.K. (see discussion below)		2,125			859
Goodwill impairment		-			9,812
Impact of US tax reform from CARES Act		-			(1,381	)
Settlement with related party		-			420
Other		444			567
Income tax provision (benefit)	$	2,642		$	(4,977	)

(in thousands)	*Year Ended October 31, 2021*			*Year Ended October 31, 2020*
Deferred tax assets:
Accrued insurance reserve	$	1,329		$	1,637
Accrued sales and use tax		75			75
Accrued bonuses and vacation		1,276			1,521
Accrued payroll tax		675			676
Foreign tax credit carryforward		80			80
State tax credit carryforward		50			70
Interest expense carryforward		649			4,089
Stock-based compensation		3,608			3,127
Other		364			335
Net operating loss carryforward		17,771			10,308
Total deferred tax assets	$	25,877		$	21,918
Valuation allowance		(63	)		(63	)
Net deferred tax assets	$	25,814		$	21,855

Deferred tax liabilities:
Intangible assets		(23,837	)		(27,504	)
Property and equipment		(71,400	)		(61,761	)
Prepaid expenses		(157	)		(128	)
Unremitted foreign earnings		(986	)		(481	)
Total net deferred tax liabilities		(96,380	)		(89,874	)

Net deferred tax liabilities	$	(70,566	)	$	(68,019	)

(in millions)	*Balance as of October 31, 2021*		*Year that Carryforwards Begin to Expire*
Federal net operating loss carryforwards	$	70.3	N/A – Carried forward indefinitely
State net operating loss carryforwards		35.8		2026
Foreign tax carryforwards		0.1		2026
State credit carryforwards		0.1		2023
Interest expense carryforwards		0.1	N/A – Carried forward indefinitely
Total tax carryforwards	$	106.4

(in thousands)	*Year Ended October 31, 2021*			*Year Ended October 31, 2020*
Balance, beginning of year	$	1,572		$	1,726
Increase in current year position		-			-
Increase in prior year position		-			-
Decrease in prior year position		(120	)		(154	)
Lapse in statute of limitations		-			-
Balance, end of year	$	1,452		$	1,572