Income tax provision (Tables)

12 Months Ended

Oct. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

The provision (benefit) for income taxes for the fiscal years ended October 31, 2014 and 2013 consists of the following (in thousands):

	2014		2013
Current:
Federal	$	839	$	1,650
State		180		191
		1,019		1,841
Deferred:
Federal		(54)		146
State		(6)		(7)
		(60)		139
	$	959	$	1,980

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):

	2014					2013
			% of Pretax					% of Pretax
	Amount		Income			Amount		Income
Income tax at Federal statutory rate	$	780		34.0	%	$	2,286		34.0	%
State tax provision, net of Federal tax benefit		135		5.9	%		227		3.3	%
Nondeductible differences:
ISO stock options, net		54		2.4	%		(324)		-4.8	%
Qualified domestic production activities deduction		(32)		-1.4	%		(87)		-1.3	%
Other		28		1.1	%		40		0.6	%
R&D credit		(6)		-0.2	%		(87)		-1.3	%
Other		-		-			(75)		-1.1	%
Provision for income taxes	$	959		41.8	%	$	1,980		29.4	%

Schedule of deferred tax assets and liabilities

The Company’s total deferred tax assets and deferred tax liabilities at October 31, 2014 and 2013 are as follows (in thousands):

	2014		2013
Current Assets:
Allowance for doubtful accounts	$	12	$	40
Accrued vacation		118		144
State income taxes		26		25
Stock based compensation awards		162		173
Section 263A costs		97		103
Other		1		10
Total current assets		416		495
Long-Term Assets:
Amortization / intangible assets		76		90
Long-Term Liabilities:
Amortization / intangible assets		(618)		(708)
Depreciation / equipment and furnishings		(269)		(332)
Net long-term deferred tax liabilities		(811)		(950)
Total deferred tax liabilities	$	(395)	$	(455)