XML 95 R18.htm IDEA: XBRL DOCUMENT v3.24.3
INCOME TAXES
 12 Months Ended
Oct. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 8 – INCOME TAXES

 

The Company accounts for income taxes under ASC 740-10, which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

 

Significant components of the Company’s deferred tax assets are summarized below.

 

   As of October 31,   As of October 31, 
   2023   2022 
Deferred tax assets:          
Net operating loss carry forwards  $1,095,000   $797,000 
Total deferred tax asset   1,095,000    797,000 
Valuation allowance   (1,095,000)   (797,000)
Deferred tax asset, net  $-   $- 

 

As of October 31, 2023 and 2022, the Company had approximately $1,095,000 and $797,000, respectively, in net operating loss carry-forwards for federal and state income tax reporting (tax effected) purposes. As a result of the Tax Cuts Job Act 2017 (the “Act”), certain future carryforwards do not expire. The Company has not performed a formal analysis but believes its ability to use such net operating losses and tax credit carryforwards in the future is subject to annual limitations due to change of control provisions under Sections 382 and 383 of the Internal Revenue Code, which will significantly impact its ability to realize these deferred tax assets.

 

 

The Company recorded a valuation allowance in the full amount of its net deferred tax assets since realization of such tax benefits has been determined by the Company’s management to be less likely than not. The valuation allowance increased $298,000 and $776,000 during the years ended October 31, 2023 and 2022, respectively.

 

A reconciliation of the statutory federal income tax benefit to actual tax benefit is as follows:

 

   As of October 31,   As of October 31, 
   2023   2022 
Federal statutory blended income tax rates   (21)%   (21)%
State statutory income tax rate, net of federal benefit   -%   -%
Change in valuation allowance   21%   21%
Effective tax rate   -%   -%

 

As of the date of this filing, the Company has not filed its 2023 federal and state corporate income tax returns. The Company expects to file these documents as soon as practicable.

 

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.