Income Taxes (Tables)

12 Months Ended

Oct. 31, 2014

Income Taxes [Abstract]

Components of income tax (expense) benefit

Income tax benefit (expense) consisted of the following:

	Year Ended October 31,
	2014			2013			2012
Current (expense) benefit:
Federal	$	(1,864,570	)	$	1,565,286		$	866,679
State		(416,620	)		434,027			131,576
Deferred benefit (expense)		2,281,190			(1,894,167	)		(12,725,350	)
Income tax benefit (expense) continuing operations		-			105,146			(11,727,095	)
Intra-period tax allocation benefit (expense) discontinued operations		-			(105,146	)		-
Total income tax benefit (expense)	$	-		$	-		$	(11,727,095	)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities are as follows:

	October 31,
	2014			2013
Deferred tax assets:
Allowance for doubtful accounts	$	238,975		$	373,477
Net operating loss carry forward		1,656,051			3,590,643
Accrued vacation		174,543			187,322
Accrued bonuses		23,507			-
Other accrued assets		186,240			-
Other accrued liabilities		122,586			222,316
Intangible assets		-			885,775
Gross deferred tax assets		2,401,902			5,259,533
Deferred tax liabilities:
Accounts receivable insolvency attribute		-			(1,612,376	)
Property and equipment		(1,336,905	)		(1,643,717	)
Intangible assets		(507,009	)
Gross deferred tax liability		(1,843,914	)		(3,256,093	)
Net deferred tax asset before valuation allowance		557,988			2,003,440
Valuation allowance:
Beginning balance		2,003,440			16,553,520
Change during the period		(1,445,452	)		(14,550,080	)
Ending balance		557,988			2,003,440
Net deferred tax asset	$	-		$	-

Reconciliation of statutory federal income tax rate to effective income tax rate

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for continuing operations is as follows:

	Year Ended October 31,
	2014		2013		2012
Statutory federal income tax rate	(34.0	)%	(34.0	)%	34.0	%
State taxes, net of federal benefit	(7.6	)	(1.8	)	12.2
Change in valuation allowance	42.8		265.8		(452.5	)
Disallowed deferred tax asset-related party	-		(220.1	)	-
Selling expenses	(1.2	)	(1.4	)	(2.7	)
CODI, Insolvency Exemption debt basis	-		3.1		-
Goodwill	-		(10.3	)	-
Other	-		0.6		1.5
Effective tax rate, benefit (expense)	-	%	1.9	%	(407.5	)%