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Income taxes (Tables) | 12 Months Ended
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Oct. 31, 2012
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consists of the following:
|  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 1,330,935 |  |  | $ | 318,148 |
State |  |  | 314,863 |  |  |  | 43,744 |
|  |  | 1,645,798 |  |  |  | 361,892 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (141,892 | ) |  |  | 24,540 |
State |  |  | (3,419 | ) |  |  | (7,600 | )
|  |  | (145,311 | ) |  |  | 16,940 |
Totals |  | $ | 1,500,487 |  |  | $ | 378,832 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax at the Federal statutory rate is reconciled to the Company's actual net provision for income taxes as follows:
|  | 2012 |  |  | 2011 |
|  | Amount |  |  | % of Pretax Income |  |  | Amount |  |  | % of Pretax Income |
Income tax at Federal statutory rate |  | $ | 1,397,891 |  |  |  | 34.0 | % |  | $ | 392,500 |  |  |  | 34.1 | %
State tax provision, net of Federal tax benefit |  |  | 229,928 |  |  |  | 5.6 |  |  |  | 23,855 |  |  |  | 2.1 |
Nondeductible differences: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ISO stock options, net |  |  | 7,182 |  |  |  | 0.2 |  |  |  | 16,297 |  |  |  | 1.4 |
Business acquisition costs |  |  | - |  |  |  | - |  |  |  | 131,504 |  |  |  | 11.4 |
Qualified domestic production deduction |  |  | (46,121 | ) |  |  | (1.1 | ) |  |  | - |  |  |  | - |
Other |  |  | 36,252 |  |  |  | 0.9 |  |  |  | - |  |  |  | - |
Uncertain tax positions |  |  | (79,223 | ) |  |  | (1.9 | ) |  |  | (116,284 | ) |  |  | (10.1 | )
R&D credit |  |  | - |  |  |  | - |  |  |  | (86,166 | ) |  |  | (7.5 | )
Other |  |  | (45,422 | ) |  |  | (1.2 | ) |  |  | 17,126 |  |  |  | 1.5 |
Provision for income taxes |  | $ | 1,500,487 |  |  |  | 36.5 | % |  | $ | 378,832 |  |  |  | 32.9 | %
Schedule of Deferred Tax Assets and Liabilities | The Company's total deferred tax assets and deferred tax liabilities at October 31, 2012 and 2011 are as follows:
|  | 2012 |  |  | 2011 |
Current Assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 37,500 |  |  | $ | 40,000 |
Inventory obsolescence |  |  | 65,700 |  |  |  | 58,600 |
Accrued vacation |  |  | 154,000 |  |  |  | 114,100 |
State income taxes |  |  | 118,400 |  |  |  | 19,700 |
Stock based compensation awards |  |  | 235,600 |  |  |  | 209,600 |
Section 263A costs |  |  | 128,800 |  |  |  | 132,800 |
Other |  |  | 20,966 |  |  |  | 35,900 |
Total current assets |  |  | 760,966 |  |  |  | 610,700 |
Long-Term Assets: |  |  |  |  |  |  |  |
Amortization / intangible assets |  |  | 103,400 |  |  |  | 116,900 |
Long-Term Liabilities: |  |  |  |  |  |  |  |
Amortization / intangible assets |  |  | (799,400 | ) |  |  | (880,600 | )
Depreciation / equipment and furnishings |  |  | (381,157 | ) |  |  | (308,500 | )
Net long-term deferred tax liabilities |  |  | (1,077,157 | ) |  |  | (1,072,200 | )
Total deferred tax liabilities |  | $ | (316,191 | ) |  | $ | (461,500 | )
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follow:
Balance at November 1, 2010 |  | $ | 216,171 |
Lapse of statute of limitations- tax positions in prior period |  |  | (136,948 | )
Balance at October 31, 2011 |  |  | 79,223 |
Lapse of statute of limitations - tax positions in prior period |  |  | (79,223 | )
Balance at October 31, 2012 |  | $ | - |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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