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Income Taxes
 12 Months Ended
Oct. 31, 2025
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):
 202520242023
United States$(19,126)$12,894 $14,395 
Foreign(1,879)(1,347)(1,031)
(Loss) income before income taxes$(21,005)$11,547 $13,364 
15. Income Taxes (continued)
The components of the provision for income taxes for the fiscal years ended October 31 are as follows (in thousands):
 202520242023
Current:   
Federal$(108)$(4,493)$(5,696)
State51 (1,972)(498)
Foreign— 5 — 
Total current tax provision(57)(6,460)(6,194)
Deferred:
Federal3,338 1,641 2,665 
State1,368 446 (717)
Foreign— — (1)
Total deferred tax benefit 4,706 2,087 1,947 
Total income tax benefit (provision)$4,649 $(4,373)$(4,247)
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):
 20252024
Deferred income tax assets:  
Reserves and other accruals$26 $1,233 
Net operating losses7,570 1,645 
Lease liabilities137 679 
Amortization59 — 
Other assets239 366 
Interest expense limitation681 — 
Stock-based compensation1,322 1,761 
Total deferred income tax assets10,034 5,684 
Valuation allowance(2,951)(1,973)
Total net deferred income tax assets7,083 3,711 
Deferred income tax liabilities:
Property taxes(100)(193)
Depreciation(11,234)(13,182)
Amortization— (40)
Land and other indefinite life assets(4,197)(4,207)
Investment in joint ventures and other basis adjustments(6,626)(5,334)
Right-of-use assets(137)(663)
Prepaids and receivables(165)(174)
Other(2)(2)
Total deferred income tax liabilities(22,461)(23,795)
Net deferred income tax liabilities$(15,378)$(20,084)
Deferred income taxes — noncurrent assets$— $— 
Deferred income taxes — noncurrent liabilities $(15,378)$(20,084)
15. 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 $2,951,000 on the net deferred tax assets of its subsidiaries in Argentina, Chile and Holland as of October 31, 2025 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, 2025, the Company recorded a deferred tax asset of $7,570,000 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
Federal19,488 Indefinite
State23,760 10/31/2040
Chile5,455 Indefinite
Holland152 10/31/2026
Argentina1,866 10/31/2027
The benefit (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):
 202520242023
 Amount%Amount%Amount%
Benefit (provision) at statutory rates$4,411 (21.0)%$(2,425)(21.0)%$(2,806)(21.0)%
State income tax, net of federal benefit1,141 (5.4)%(1,201)(10.4)%(814)(6.2)%
Share-based compensation83 (0.4)%243 2.1 %20 0.2 %
Executive compensation(505)2.4 %(561)(4.9)%(395)(3.0)%
Tax law change— — %— — %137 1.0 %
State rate adjustment(1)— %(64)(0.6)%(95)(0.7)%
Valuation allowance(986)4.7 %(80)(0.7)%(436)(3.3)%
Foreign rate differential115 (0.6)%(85)(0.7)%66 0.5 %
Noncontrolling interests, net(76)0.4 %(114)(1.0)%(48)(0.4)%
Other permanent items509 (2.4)%(86)(0.7)%247 1.9 %
Tax credit and others(42)0.2 %— — %(123)(0.8)%
Total income tax benefit (provision)$4,649 (22.1)%$(4,373)(37.9)%$(4,247)(31.8)%
As of October 31, 2025 and 2024, 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 were no accrued interest or penalties associated with uncertain tax positions as of October 31, 2025.