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Income Taxes
 12 Months Ended
Oct. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
A reconciliation of income before income taxes for domestic and foreign locations for the fiscal years ended October 31 are as follows (in thousands):
 202420232022
United States$12,894 $14,395 $1,911 
Foreign(1,347)(1,031)(1,562)
Income before income taxes$11,547 $13,364 $349 
16. Income Taxes (continued)
The components of the provision for income taxes for the fiscal years ended October 31 are as follows (in thousands):
 202420232022
Current:   
Federal$(4,493)$(5,696)$(178)
State(1,972)(498)(93)
Foreign5 — (4)
Total current tax provision(6,460)(6,194)(275)
Deferred:
Federal1,641 2,665 (477)
State446 (717)(127)
Foreign— (1)56 
Total deferred tax (provision) benefit 2,087 1,947 (548)
Total income tax provision$(4,373)$(4,247)$(823)
Deferred income taxes reflect the net of temporary differences between the carrying amount of the assets and liabilities for financial reporting and income tax purposes. The components of deferred income tax assets as of October 31 are as follows (in thousands):
 20242023
Deferred income tax assets:  
Reserves and other accruals$1,233 $698 
Net operating losses1,645 1,970 
Lease liabilities679 951 
Other assets366 43 
Stock-based compensation1,761 1,320 
Total deferred income tax assets5,684 4,982 
Valuation allowance(1,973)(2,299)
Total net deferred income tax assets3,711 2,683 
Deferred income tax liabilities:
Property taxes(193)(19)
Depreciation(13,182)(13,335)
Amortization(40)(107)
Land and other indefinite life assets(4,207)(4,138)
Investment in joint ventures and other basis adjustments(5,334)(6,119)
Right-of-use assets(663)(935)
Prepaids and receivables(174)(178)
Other(2)(24)
Total deferred income tax liabilities(23,795)(24,855)
Net deferred income tax liabilities$(20,084)$(22,172)
Deferred income taxes — noncurrent assets$— $— 
Deferred income taxes — noncurrent liabilities $(20,084)$(22,172)
16. Income Taxes (continued)
The Company periodically evaluates the recoverability of the deferred tax assets. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company recorded a valuation allowance of $1,973,000 on the net deferred tax assets of its subsidiaries in Argentina, Chile and Holland as of October 31, 2024 as the Company does not believe it is more likely than not that these deferred tax assets will be realized due to the recent history of cumulative pre-tax book losses and lack of objectively verifiable future sources of taxable income.
As of October 31, 2024, the Company recorded a deferred tax asset of $1,645,000 related to its state and foreign net operating loss carryforwards. The net operating losses begin to expire as follows (in thousands):
JurisdictionGross AmountBegin to Expire
State866 10/31/2040
Chile3,292 Indefinite
Holland171 10/31/2025
Argentina2,703 10/31/2025
The provision for income taxes differs from the amount of income tax determined by applying the U.S. statutory federal income tax rate to pretax income as a result of the following differences for the fiscal years ended October 31 (in thousands):
 202420232022
 Amount%Amount%Amount%
Provision at statutory rates$(2,425)(21.0)%$(2,806)(21.0)%$(73)(21.0)%
State income tax, net of federal benefit(1,201)(10.4)%(814)(6.2)%(74)(21.1)%
Share-based compensation243 2.1 %20 0.2 %(110)(31.2)%
Executive compensation(561)(4.9)%(395)(3.0)%(98)(27.9)%
Tax law change— — %137 1.0 %— — %
State rate adjustment(64)(0.6)%(95)(0.7)%(59)(16.9)%
Valuation allowance(80)(0.7)%(436)(3.3)%(357)(101.8)%
Foreign rate differential(85)(0.7)%66 0.5 %74 21.1 %
Noncontrolling interest(114)(1.0)%(48)(0.4)%(41)(11.8)%
Other permanent items(86)(0.7)%247 1.9 %(12)(3.5)%
Tax credit and others— — %(123)(0.8)%(73)(20.7)%
Total income tax provision$(4,373)(37.9)%$(4,247)(31.8)%$(823)(234.8)%
As of October 31, 2024 and 2023, the Company had no unrecognized tax benefits. The Company files income tax returns in the U.S., California, Arizona, Chile, Argentina and Holland. The Company is no longer subject to significant U.S., state and Chilean income tax examinations for years prior to the statutory periods of three years for federal, four years for state and three years for Chilean tax jurisdictions. The Company recognizes interest expense and penalties related to income tax matters as a component of income tax expense. There was no accrued interest or penalties associated with uncertain tax positions as of October 31, 2024.