INCOME TAXES |
3 Months Ended |
|---|---|
Jan. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES |
NOTE 17 – INCOME TAXES
Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we may update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.
Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation, due to several factors including variability in accurately predicting our pre-tax income and/or loss and the mix of jurisdictions to which they relate. Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss.
We estimate that the Company’s effective tax rate for the three months ended January 31, 2025, and 2024, was 2.3% and 19.5% respectively. In the Current Quarter the U.S. companies had a tax benefit as they did not generate any taxable income, and which resulted in a decrease of the Company’s effective income tax rate from 25.0% for the U.S companies. In the Current Quarter the Company made award of restricted stock and recorded a deferred tax benefit of $26,989 compared to a deferred tax expense in the Previous Quarter of $187,071, as a result of the vesting of restricted stock awards. In respect of the Company’s UK subsidiaries, no tax provision for the three months to January 31, 2025 has been made as we believe our R&D tax credits will offset any tax liability incurred in this period. In the Current Quarter, we made a tax provision of 22.0% for our Danish Subsidiary. |