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Income Taxes | 12 Months Ended
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Oct. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | 7. INCOME TAXES Income tax provision (benefit) consists of the following:
|  | Year Ended October 31, |
|  | 2020 |  |  | 2019 |
Federal: |  |  |  |  |  |  |  |
Current |  | $ | - |  |  | $ | - |
Deferred |  |  | 404,000 |  |  |  | (948,000 | )
State: |  |  |  |  |  |  |  |
Current |  |  | - |  |  |  | - |
Deferred |  |  | (800,000 | ) |  |  | (995,000 | )
Adjustment to valuation allowance related to net deferred tax assets |  |  | 396,000 |  |  |  | 1,943,000 |
|  | $ | - |  |  | $ | - |
The tax effects of temporary differences that give rise to significant portions of the deferred tax asset, net, at October 31, 2020 and 2019, are as follows:
|  | October 31, |
|  | 2020 |  |  | 2019 |
Long-term deferred tax assets: |  |  |  |  |  |  |  |
Federal and state NOL and tax credit carryforwards |  | $ | 19,727,000 |  |  | $ | 19,593,000 |
Deferred compensation |  |  | 8,009,000 |  |  |  | 7,619,000 |
Intangibles |  |  | 828,000 |  |  |  | 943,000 |
Other |  |  | 192,000 |  |  |  | 205,000 |
Subtotal |  |  | 28,756,000 |  |  |  | 28,360,000 |
Less: valuation allowance |  |  | (28,756,000 | ) |  |  | (28,360,000 | )
Deferred tax asset, net |  | $ | - |  |  | $ | - |
As of October 31, 2020, we had tax net operating loss and tax credit carryforwards of approximately $81,316,000 and $1,545,000, respectively, available within statutory limits (expiring at various dates between 2021 and 2040), to offset any future regular Federal corporate taxable income and taxes payable. If the tax benefits relating to deductions of option holders’ income are ultimately realized, those benefits will be credited directly to additional paid-in capital. Certain changes in stock ownership can result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. As of October 31, 2020, management has not determined the extent of any such limitations, if any. We had California tax net operating loss carryforwards of approximately $26,671,000 as of October 31, 2020, available within statutory limits (expiring at various dates between 2021 and 2040), to offset future corporate taxable income and taxes payable, if any, under certain computations of such taxes. We have provided a valuation allowance against our deferred tax asset due to our current and historical pre-tax losses and the uncertainty regarding their realizability. The primary differences from the Federal statutory rate of 21% and the effective rate of 0% is attributable to expiring net operating losses and a change in the valuation allowance. The following is a reconciliation of income taxes at the Federal statutory tax rate to income tax expense (benefit):
|  | Year Ended October 31, |
|  | 2020 |  |  | 2019 |
Income tax benefit at U.S. Federal statutory income tax rate |  | $ | (2,119,000 | ) |  |  | (21.00 | )% |  | $ | (2,482,000 | ) |  |  | (21.00 | )%
State income taxes |  |  | (705,000 | ) |  |  | (6.98 | )% |  |  | (1,045,000 | ) |  |  | (8.84 | )%
Permanent differences |  |  | 32,000 |  |  |  | 0.32 | % |  |  | 30,000 |  |  |  | 0.25 | %
Expiring net operating losses, credits and other |  |  | 2,396,000 |  |  |  | 23.74 | % |  |  | 1,554,000 |  |  |  | 13.15 | %
Change in valuation allowance |  |  | 396,000 |  |  |  | 3.92 | % |  |  | 1,943,000 |  |  |  | 16.44 | %
Income tax provision |  | $ | - |  |  |  | 0.00 | % |  | $ | - |  |  |  | 0.00 | %
During the two fiscal years ended October 31, 2020, we incurred no Federal and no State income taxes. We have no unrecognized tax benefits as of October 31, 2020 and 2019 and we account for interest and penalties related to income tax matters in general and administrative expenses. Tax years to which our net operating losses relate remain open to examination by Federal and California authorities to the extent which the net operating losses have yet to be utilized.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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