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INCOME TAXES (Tables)
12 Months Ended
Oct. 31, 2023
INCOME TAXES  
Schedule of Income Taxes Provision (Benefit)

In the fiscal years set forth below, the provision (benefit) for income taxes consisted of the following (in thousands):

Year Ended October 31, 

    

2023

    

2022

    

2021

Current:

 

  

  

 

  

U.S. taxes

$

(431)

  

$

1,092

$

1,763

Foreign taxes

 

2,775

 

3,191

 

1,706

 

2,344

 

4,283

 

3,469

Deferred:

 

 

 

U.S. taxes

 

104

 

(933)

 

66

Foreign taxes

 

(83)

 

302

 

(178)

 

21

 

(631)

 

(112)

$

2,365

  

$

3,652

$

3,357

Components of Income (Loss) Before Taxes

The components of income (loss) before taxes are (in thousands):

Year Ended October 31, 

    

2023

    

2022

    

2021

Income (loss) before income taxes:

 

  

  

  

  

  

Domestic

$

(3,259)

 

$

(232)

  

$

4,340

Foreign

 

10,013

  

 

12,110

  

 

5,781

$

6,754

 

$

11,878

  

$

10,121

Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate

Year Ended October 31, 

 

    

2023

    

2022

    

2021

  

 

 

 

  

  

U.S. statutory rate

 

21

%  

 

21

%  

 

21

%

Effect of tax rate of international jurisdictions different than U.S. statutory rates

 

6

%  

 

4

%  

 

4

%

Valuation allowance

 

2

%  

 

3

%  

 

%

State taxes

 

(1)

%  

 

1

%  

 

1

%

Tax credits

 

%  

 

1

%  

 

%

U.S. benefit of foreign intangible income

%  

(3)

%  

(1)

%  

Impact of CARES act

%  

%  

5

%  

Stock-based compensation

6

%  

4

%  

4

%  

Other

 

1

 

 

(1)

Effective tax rate

 

35

%  

 

31

%  

 

33

%

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities at October 31, 2023 and 2022 are as follows (in thousands):

October 31, 

    

2023

    

2022

Deferred Tax Assets:

 

  

 

  

Accrued inventory reserves

$

1,580

  

$

1,329

Accrued warranty expenses

 

241

 

270

Compensation related expenses

 

2,222

 

2,495

Net derivative gain

683

98

Unrealized exchange gain

 

 

117

Other accrued expenses

 

344

 

318

Net operating loss carryforwards

 

2,249

 

1,449

Other credit carryforwards

 

712

 

703

Operating lease liabilities

2,818

2,023

Goodwill and intangibles

798

831

Other

 

131

 

171

 

11,778

 

9,804

Less: Valuation allowance – net operating loss and other credit carryforwards

 

(1,810)

 

(1,754)

Deferred tax assets

 

9,968

 

8,050

 

 

Deferred Tax Liabilities:

 

 

Unrealized exchange loss

 

(159)

 

Property and equipment and capitalized software development costs

 

(1,915)

 

(2,394)

Operating lease - right of use assets

(2,731)

(1,960)

Other

 

(497)

 

(321)

Net deferred tax assets

$

4,666

  

$

3,375

Schedule of Income Tax Expense

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding the related accrual for interest or penalties, is as follows (in thousands):

    

2023

    

2022

    

2021

Balance, beginning of year

$

138

  

$

167

$

168

Additions based on tax positions related to the current year

 

 

21

 

74

Additions (reductions) related to prior year tax positions

 

 

 

Reductions due to statute expiration

 

 

(50)

 

(75)

Balance, end of year

$

138

  

$

138

$

167

Summary of open tax years by major jurisdiction

United States federal

Fiscal 2014 through the current period

United Kingdom

Fiscal 2017 through the current period

Taiwan

Fiscal 2018 through the current period

Germany¹

Fiscal 2022 through the current period

¹

Includes federal as well as state, provincial or similar local jurisdictions, as applicable.