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

Note 13 - Income Taxes (Tables)

12 Months Ended

Oct. 31, 2022

(in thousands)	*Year Ended October 31, 2022*			*Year Ended October 31, 2021*
Current tax provision (benefit):
Federal	$	-		$	-
Foreign		(113	)		(375	)
State and local		434			470
Total current tax provision		321			95

Deferred tax provision (benefit):
Federal	$	4,575		$	483
Foreign		70			2,134
State and local		560			(70	)
Total deferred tax benefit		5,205			2,547

Net provision for income taxes	$	5,526		$	2,642

(in thousands)	*Year Ended October 31, 2022*			*Year Ended October 31, 2021*
Income tax expense/(benefit) per federal statutory rate of 21% for each period	$	7,182		$	(2,611	)
State income taxes, net of federal deduction		898			193
Change in deferred tax rate		81			(92	)
Warrant fair value change		(2,078	)		2,078
Deferred tax on undistributed foreign earnings		(827	)		505
Impact of tax reform in the U.K. (see discussion below)		-			2,125
Increase in valuation allowance		71			-
Other		199			444
Income tax provision	$	5,526		$	2,642

(in thousands)	*Year Ended October 31, 2022*			*Year Ended October 31, 2021*
Deferred tax assets:
Accrued insurance reserve	$	2,385		$	1,329
Accrued sales and use tax		75			75
Accrued bonuses and vacation		1,737			1,276
Accrued payroll tax		445			675
Foreign tax credit carryforward		80			80
State tax credit carryforward		38			50
Interest expense carryforward		576			649
Stock-based compensation		3,105			3,608
Prepaid expenses		(172	)		-
Operating lease liability		6,315			-
Other		400			364
Net operating loss carryforward		25,894			17,771
Total deferred tax assets	$	40,878		$	25,877
Valuation allowance		(134	)		(63	)
Net deferred tax assets	$	40,744		$	25,814

Deferred tax liabilities:
Intangible assets		(17,758	)		(23,837	)
Property and equipment		(90,998	)		(71,400	)
Prepaid expenses		-			(157	)
Right-of-use operating lease asset		(6,211	)		-
Unremitted foreign earnings		-			(986	)
Total net deferred tax liabilities		(114,967	)		(96,380	)

Net deferred tax liabilities	$	(74,223	)	$	(70,566	)

(in millions)	*Balance as of October 31, 2022*		*Year that Carryforwards Begin to Expire*
Federal net operating loss carryforwards	$	105.5	N/A – Carried forward indefinitely
State net operating loss carryforwards		50.3		2026
Foreign net operating loss carryforwards		11.9	N/A – Carried forward indefinitely
Foreign tax carryforwards		0.1		2026
State credit carryforwards		-		2023
Interest expense carryforwards		12.4	N/A – Carried forward indefinitely
Total tax carryforwards	$	180.2

(in thousands)	*Year Ended October 31, 2022*			*Year Ended October 31, 2021*
Balance, beginning of year	$	1,452		$	1,572
Increase in current year position		-			-
Increase in prior year position		-			-
Decrease in prior year position		(119	)		(120	)
Lapse in statute of limitations		-			-
Balance, end of year	$	1,333		$	1,452