Note 12 - Income Taxes
|9 Months Ended|
Jul. 31, 2022
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
Note 12. Income Taxes
For the third fiscal quarter ended July 31, 2022, the Company recorded an income tax expense of $2.5 million on pretax income of $17.0 million. For the same quarter a year ago, the Company recorded an income tax expense of $1.7 million on pretax income of $6.3 million. For the first nine months of fiscal year 2022, the Company recorded an income tax expense of $3.0 million on pretax income of $24.7 million. For the same period a year ago, the Company recorded an income tax benefit of $0.8 million on pretax loss of $19.3 million. The effective tax rate for the three and nine-month periods ended July 31, 2022 was impacted by (1) the respective change in fair value of warrant liabilities, all of which is not recognized for tax purposes and (2) a change in unremitted earnings deferred tax liability due to foreign rate fluctuations.
At July 31, 2022 and October 31, 2021, the Company had deferred tax liabilities, net of deferred tax assets, of $72.2 million and $70.6 million, respectively. Included in deferred tax assets at July 31, 2022 and October 31, 2021 were net operating loss carryforwards of $17.8 million. The Company has a valuation allowance of $0.1 million as of both July 31, 2022 and October 31, 2021 related to foreign tax credit carryforwards where realization is more uncertain at this time due to the limited carryforward periods that exist.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef