INCOME TAXES |
6 Months Ended |
|---|---|
Apr. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES |
Note 17 – INCOME TAXES
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Our provision for, 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 recognized in the relevant period. We update our estimate of the annual effective tax rate each quarter based on the most current information available. Any change in the estimated annual effective tax rate is recorded as a cumulative adjustment in the period in which the change is identified.
Our quarterly income tax provision, as well as our quarterly estimate of the annual effective tax rate, may vary significantly from period to period. This variability is driven by several factors, including the inherent difficulty in forecasting pre-tax income or loss and the jurisdictions in which such results are expected to occur; the impact of intercompany transactions; the applicability of special tax regimes; changes in our operating structure; fluctuations in our stock price; foreign currency gains and losses; and changes in tax laws, regulations, or administrative practices. Our effective tax rate may be more or less volatile depending on the level of pre-tax income or loss in a given period.
The One Big Beautiful Bill Act of 2025 (the “2025 Tax Act”) was enacted on July 4, 2025. The 2025 Tax Act includes several changes to U.S. corporate income tax rules, including the reinstatement of 100% accelerated depreciation for qualified property, retroactive to January 20, 2025, and the immediate expensing of domestic research and development costs, retroactive to January 1, 2025. For fiscal year 2026, we do not expect these provisions to result in significant changes to our U.S. cash tax obligations.
Beginning in fiscal year 2027, we expect our income tax provision to increase primarily due to a reduction in our foreign income deduction under the global intangible low-taxed income (“GILTI”) provisions of the 2025 Tax Act.
The Company continues to evaluate the impact of the 2025 Tax Act and other enacted or proposed tax law changes as additional guidance becomes available. Any resulting adjustments will be recognized in the period in which such information becomes available and the effects can be reasonably estimated.
We estimate that the Company’s effective tax rate for the three months ended April 30, 2026, and 2025, was 20.4% and 28.2%, respectively. In the three months ended April 30, 2026, and 2025, we recorded current income tax expense of $432,203 and $374,701, respectively
We estimate that the Company’s effective tax rate for the six months ended April 30, 2026, and 2025, was 20.8% and 17.2%, respectively. In the six months ended April 30, 2026, and 2025, we recorded current income tax expense of $695,419 and $423,575, respectively.
In the three and six months ended April 30, 2026, the Company recorded a deferred tax expense of $3,639 and benefit of $3,527 respectively, compared to a deferred tax benefit in the previous three and six months to April 30, 2025, of $17,853 and $44,842 respectively. |