Income Tax

9 Months Ended

Jul. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax

Note 8 – Income Tax

The Company is subject to federal income taxes and state income tax in the United States. Significant judgment is required in determining the provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017, and reduced the U.S. federal corporate tax rate from 35% to 21%, eliminated corporate Alternative Minimum Tax, modified rules for expensing capital investment, and limited the deduction of interest expense for certain companies. The Company fulfilled and shipped all of the Products from Florida and, thus, it is subject to the state corporate income tax of Florida with a tax rate of 4.458%.

During the nine months ended July 31, 2021, the Company generated no taxable income and, thus no federal or state income taxes are accrued for tax year 2021.

Significant components of the Company’s deferred tax assets and liabilities as of July 31, 2021 and October 31, 2020 after applying enacted corporate income tax rate, is net operating loss carryforward of $721,771 and $15,377, respectively, and a valuation allowance of $721,771 and $15,377, respectively, which is a total deferred tax asset of $737,148. The Company’s tax returns for 2018 and 2019 remain open to examination.