Income tax provision

12 Months Ended

Oct. 31, 2015

Income Tax Disclosure [Abstract]

Income tax provision

Note 8 - Income tax provision

The provision (benefit) for income taxes for the fiscal years ended October 31, 2015 and 2014 consists of the following (in thousands):

	2015		2014
Current:
Federal	$	467	$	839
State		17		180
		484		1,019
Deferred:
Federal		(131)		(54)
State		(38)		(6)
		(169)		(60)
	$	315	$	959

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):

The Company’s total deferred tax assets and deferred tax liabilities at October 31, 2015 and 2014 are as follows (in thousands):

	2015		2014
Current Assets:
Allowance for doubtful accounts	$	171	$	12
Accrued vacation		143		118
State income taxes		-		26
Stock based compensation awards		-		162
Uniform capitalization		97		-
Section 263A costs		-		97
Other		15		1
Total current assets		426		416
Long-Term Assets:
Amortization / intangible assets		-		76
Stock based compensation awards		136		-
Other		4		-
Long-Term Liabilities:
Amortization / intangible assets		(1,036)		(618)
Depreciation / equipment and furnishings		(247)		(269)
Net long-term deferred tax liabilities		(1,143)		(811)
Total deferred tax liabilities	$	(717)	$	(395)

The Company had no unrecognized tax benefits nor any gross liability for unrecognized tax benefits at October 31, 2015 and 2014.

No interest and penalties were accrued during fiscal 2014 or 2015.

The Company is currently not undergoing any tax examinations. Tax fiscal years ended October 31, 2011 through October 31, 2015 remain subject to examination.