Income Taxes (Tables)

12 Months Ended

Oct. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the fiscal years ended October 31, 2013 and 2012 consists of the following (in thousands):

	2013		2012
Current:
Federal	$	1,365	$	1,329
State		153		315
		1,518		1,644
Deferred:
Federal		285		(142)
State		27		(3)
		312		(145)
	$	1,830	$	1,499

Schedule of Effective Income Tax Rate Reconciliation

Income tax at the federal statutory rate is reconciled to the Company’s actual net provision for income taxes as follows (in thousands, except percentages):

	2013				2012
			% of Pretax				% of Pretax
	Amount		Income		Amount		Income
Income tax at Federal statutory rate	$	2,315	34.0	%	$	1,396	34.0	%
State tax provision, net of Federal tax benefit		232	3.4	%		230	5.6	%
Nondeductible differences:
ISO stock options, net		(509)	-7.4	%		7	0.2	%
Qualified domestic production activities deduction		(87)	-1.3	%		(46)	-1.1	%
Other		40	0.6	%		36	0.9	%
Uncertain tax positions		-	-			(79)	-1.9	%
R&D credit		(87)	-1.3	%		-	-
Other		(74)	-1.1	%		(45)	-1.2	%
Provision for income taxes	$	1,830	26.9	%	$	1,499	36.5	%

Schedule of Deferred Tax Assets and Liabilities

The Company’s total deferred tax assets and deferred tax liabilities at October 31, 2013 and 2012 are as follows (in thousands):

	2013		2012
Current Assets:
Allowance for doubtful accounts	$	40	$	37
Inventory obsolescence		-		66
Accrued vacation		144		154
State income taxes		27		118
Stock based compensation awards		-		236
Section 263A costs		104		129
Other		7		21
Total current assets		322		761
Long-Term Assets:
Amortization / intangible assets		90		103
Long-Term Liabilities:
Amortization / intangible assets		(708)		(799)
Depreciation / equipment and furnishings		(332)		(381)
Net long-term deferred tax liabilities		(950)		(1,077)
Total deferred tax liabilities	$	(628)	$	(316)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at November 1, 2011	$	79
Lapse of statute of limitations - tax positions in prior period		(79)
Balance at October 31, 2012		-
Lapse of statute of limitations - tax positions in prior period		-
Balance at October 31, 2013	$	-