Annual report pursuant to Section 13 and 15(d)

Note 12 - Income Taxes (Tables)

v3.21.4
Note 12 - Income Taxes (Tables)
12 Months Ended
Oct. 31, 2021
Notes Tables  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

(in thousands)

 

Year Ended October 31, 2021

   

Year Ended October 31, 2020

 

United States

  $ (13,162 )   $ (49,688 )

Foreign

    731       (16,540 )

Total

  $ (12,431 )   $ (66,228 )
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

(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 )
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

(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 )
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(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 )
Summary of Operating Loss and Tax Credit Carryforwards [Table Text Block]

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

(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