Income Taxes |
NOTE 7 - INCOME TAXES
The provision for federal and foreign income
taxes consisted of the following:
|
|
October 31, 2019 |
|
|
October 31, 2018 |
|
Current income tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(75,004 |
) |
|
$ |
7,840 |
|
Foreign |
|
|
35,582 |
|
|
|
(139,303 |
) |
|
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
1,046,776 |
|
|
|
(1,754,169 |
) |
Foreign |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,007,354 |
|
|
$ |
(1,885,632 |
) |
The expense for income taxes differed from
the U.S. statutory rate due to the following:
|
|
October 31, 2019 |
|
|
October 31, 2018 |
|
Statutory tax rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
Change in deferred taxes |
|
|
(4.2 |
%) |
|
|
(77.5 |
%) |
Alternative Minimum Tax (refund) |
|
|
(1.2 |
%) |
|
|
0.3 |
% |
Foreign tax (benefit) expense |
|
|
0.5 |
% |
|
|
(4.5 |
%) |
|
|
|
|
|
|
|
|
|
Total |
|
|
16.1 |
% |
|
|
(60.7 |
%) |
Deferred tax assets consisted of the following on October 31:
|
|
2019 |
|
|
2018 |
|
Noncurrent deferred tax assets |
|
|
|
|
|
|
|
|
U.S. NOL carryforwards |
|
$ |
670,787 |
|
|
$ |
1,754,169 |
|
Other Foreign deferred tax liabilities |
|
|
(39,103 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
631,684 |
|
|
$ |
1,754,169 |
|
As of October 31, 2019, we had U.S. federal
net operating loss (NOL) carryforwards of $3,368,538, which will expire at various dates as follows:
2028 |
|
$ |
2,707,158 |
|
2029 |
|
|
661,380 |
|
|
|
|
|
|
Total |
|
$ |
3,368,538 |
|
|