Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Income Taxes

v3.23.2
Note 12 - Income Taxes
 9 Months Ended
Jul. 31, 2023
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 12. Income Taxes

 

The following table summarizes income before income taxes and income tax expense for the three and nine months ended July 31, 2023 and 2022:

 

   

Three Months Ended July 31,

    

Nine Months Ended July 31,

  

(in thousands)

  

2023

    

2022

    

2023

    

2022

  
                                 

Income before income taxes

   $ 13,654     $ 15,006     $ 27,826     $ 22,679  
                                 

Income tax expense

   $ 3,318     $ 2,030     $ 5,427     $ 2,535  

 

The effective tax rate for the three and nine months ended July 31, 2023 and 2022 was primarily impacted by the respective change in fair value of warrant liabilities, which is not recognized for tax purposes.

 

As of   July 31, 2023 and October 31, 2022, the Company had deferred tax liabilities, net of deferred tax assets, of $79.4 million and $74.2 million, respectively. Included in deferred tax assets as of  July 31, 2023 and  October 31, 2022 were net operating loss carryforwards of $21.9 million and $25.9 million, respectively. The Company has a valuation allowance of $0.1 million as of July 31, 2023 and  October 31, 2022 related to foreign and U.S. state tax credit carryforwards where realization is more uncertain at this time due to the limited carryforward periods that exist and state net operating losses that are expected to expire before they can be utilized.