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Income Taxes | 12 Months Ended
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Oct. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 8 - INCOME TAXES: The Company’s provision for income taxes in 2019 and 2018 consisted of the following:
|  | 2019 |  |  | 2018 |
Current |  |  |  |  |  |  |  |
Federal |  | $ | 10,172 |  |  | $ | 219,233 |
State and local |  |  | 68,974 |  |  |  | 140,534 |
|  |  | 79,146 |  |  |  | 359,767 |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | (45,323 | ) |  |  | 98,400 |
State and local |  |  | (4,615 | ) |  |  | 53,365 |
|  |  | (49,938 | ) |  |  | 151,765 |
Income tax expense |  | $ | 29,208 |  |  | $ | 511,532 |
A reconciliation of the difference between the expected income tax rate using the statutory U.S. federal tax rate and the Company’s effective tax rate is as follows:
|  | 2019 |  |  | 2018 |
Tax at the federal statutory rate |  | $ | 61,575 |  |  | $ | 693,239 |
Other permanent differences |  |  | (45,107 | ) |  |  | (59,473 | )
Effect of tax rate change |  |  |  |  |  |  | (224,283 | )
State and local tax, net of federal |  |  | 12,740 |  |  |  | 102,049 |
Provision for income taxes |  | $ | 29,208 |  |  | $ | 511,532 |
Effective income tax rate |  |  | 10 | % |  |  | 25 | %
The tax effects of the temporary differences that give rise to the deferred tax assets and liabilities as of October 31, 2019 and 2018 are as follows:
|  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 36,802 |  |  | $ | 39,561 |
Unrealized loss |  |  |  |  |  |  | 6,057 |
Deferred rent |  |  | 49,442 |  |  |  | 66,524 |
Deferred compensation |  |  | 96,720 |  |  |  | 146,356 |
Net operating loss |  |  | 82,973 |  |  |  | 96,950 |
Stock-based compensation |  |  | 121,880 |  |  |  |  |
Inventory |  |  | 92,656 |  |  |  | 84,877 |
Total deferred tax asset |  | $ | 480,473 |  |  | $ | 440,325 |
Deferred tax liability: |  |  |  |  |  |  |  |
Intangible assets acquired |  |  | 484,932 |  |  |  | 484,932 |
Unrealized gain |  |  | 32,656 |  |  |  |  |
Fixed assets |  |  | 354,644 |  |  | $ | 397,090 |
Total deferred tax liabilities |  | $ | 872,232 |  |  | $ | 882,022 |
A valuation allowance was not provided at October 31, 2019 or 2018. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are expected to be deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income are reduced. As of October 31, 2019 and 2018, the Company did not have any unrecognized tax benefits or open tax positions. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of October 31, 2019 and 2018, the Company had no accrued interest or penalties related to income taxes. The Company currently has no federal or state tax examinations in progress. The Company files a U.S. federal income tax return and California, Colorado, Connecticut, Idaho, Kansas, Michigan, New Jersey, New York, New York City, Virginia, Texas, Rhode Island, South Carolina, and Oregon state tax returns. The Company’s federal income tax return is no longer subject to examination by the federal taxing authority for years before fiscal 2016. The Company’s California, Colorado and New Jersey and Texas income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2015. The Company’s Oregon, New York, Kansas, South Carolina, Rhode Island, Connecticut and Michigan income tax returns are no longer subject to examination by their respective taxing authorities for the years before fiscal 2016.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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