Income tax provision (Tables)

12 Months Ended

Oct. 31, 2016

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, 2016 and 2015 consists of the following (in thousands):

	2016		2015
Current:
Federal	$	(332)	$	300
State		(13)		4
		(345)		304
Deferred:
Federal		(179)		(126)
State		(128)		(38)
		(307)		(164)
	$	(652)	$	140

Schedule of Effective Income Tax Rate and Amount Reconciliation

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

	2016					2015
			% of Pretax					% of Pretax
	Amount		Income			Amount		Income
Income taxes at federal statutory rate	$	(1,592)		34.0	%	$	287		34.0	%
State tax provision, net of federal tax benefit		(53)		1.1	%		38		4.5	%
Nondeductible differences:
Goodwill and other intangible asset impairment		916		(19.6)	%		-		0.0	%
Rel-Tech earn-out		52		(1.1)	%		-		0.0	%
Qualified domestic production activities deduction		46		(1.0)	%		(36)		(4.3)	%
ISO stock options		43		(0.9)	%		50		6.0	%
Meals and entertainment		29		(0.6)	%		31		3.7	%
Comnet book income		-		0.0	%		(46)		(5.5)	%
Transaction costs		-		0.0	%		28		3.4	%
Temporary true-ups		(3)		0.1	%		(89)		(10.6)	%
State tax refunds, net of federal expense		(38)		0.8	%		(66)		(7.9)	%
R&D credits		(46)		1.0	%		(44)		(5.2)	%
Other		(6)		0.1	%		(13)		(1.3)	%
	$	(652)		13.9	%	$	140		16.8	%

Schedule of deferred tax assets and liabilities

The Company’s total deferred tax assets and deferred tax liabilities at October 31, 2016 and 2015 are as follows (in thousands):

	2016		2015
Deferred Tax Assets:
Reserves	$	216	$	171
Accrued vacation		134		143
Stock-based compensation awards		159		-
Uniform capitalization		148		97
Other		43		15
Total deferred tax assets		700		426
Deferred Tax Liabilities:
Stock-based compensation awards		-		136
Amortization / intangible assets		(864)		(1,036)
Depreciation / equipment and furnishings		(211)		(247)
Other		(34)		4
Total deferred tax liabilities		(1,109)		(1,143)
Total net deferred tax assets (liabilities)	$	(409)	$	(717)