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Note 10 - Income Taxes
 3 Months Ended
Jan. 31, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
10
–
Income taxes
 
We use an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate, to determine its quarterly provision (benefit) for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter.
 
During the
first
quarter of fiscal
2021,
the Consolidated Appropriations Act was passed which allows for PPP loan expenses to be deducted on the Company's tax return. This resulted in a decrease to our deferred tax asset and income taxes payable of
$0.7
million. The provision or benefit for income taxes was
32%
and (
120%
) of (loss) income before income taxes for the
three
months ended
January 31, 2021 (
the “fiscal
2021
quarter”) and
2020
(the “fiscal
2020
quarter”), respectively. The change in the effective tax rate from the fiscal
2020
quarter to fiscal
2021
quarter was primarily driven by the disproportionate impact of various permanent book-tax differences with respect to our forecasted book income or loss in each period.
 
We had
$134,000
and
$107,000
of unrecognized tax benefits, inclusive of interest and penalties, as of
January 31, 2021
and
October 31, 2020,
respectively. The unrecognized tax benefits, if recognized, would result in a net tax benefit of
$35,000
as of
January 31, 2021.