Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Income Taxes

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Note 12 - Income Taxes
 3 Months Ended
Jan. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 12. Income Taxes

 

The following table summarizes income (loss) before income taxes and income tax expense (benefit) for the three months ended January 31, 2024 and 2023:

 

   

Three Months Ended January 31,

  

(in thousands)

  

2024

    

2023

  
                 

Income (loss) before income taxes

   $ (4,837 )   $ 7,119  
                 

Income tax expense (benefit)

   $ (1,011 )   $ 644  

 

The effective tax rate for the three months ended January 31, 2024 and 2023 was primarily impacted by the change in fair value of warrant liabilities.

 

As of  January 31, 2024 and October 31, 2023, the Company had deferred tax liabilities, net of deferred tax assets, of $79.4 million and $80.8 million, respectively. Included in deferred tax assets as of  January 31, 2024 and  October 31, 2023 were net operating loss carryforwards of $15.7 million and $18.6 million, respectively. The Company has a valuation allowance of $0.2 million as of January 31, 2024 and  October 31, 2023, 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.