Income Taxes (Tables)

12 Months Ended

Oct. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Tax

The Company’s (benefit)/provision for income taxes in 2020 and 2019 consisted of the following:

	2020			2019
Current
Federal	$	187,140		$	10,172
State and local		62,499			68,974
		249,639			79,146
Deferred
Federal		(229,355	)		(45,323	)
State and local		(61,997	)		(4,615	)
		(291,352	)		(49,938	)
Income tax (benefit)/expense	$	(41,713	)	$	29,208

Schedule of Effective Income Tax Rate

A reconciliation of the difference between the expected income tax rate using the statutory U.S. federal tax rate and the Company’s effective tax rate is as follows:

	2020			2019
(Benefit) tax at the federal statutory rate	$	(79,329	)	$	61,575
Other permanent differences		52,537			(45,107	)
State and local tax, net of federal		(14,921	)		12,740
(Benefit) provision for income taxes	$	(41,713	)	$	29,208
Effective income tax rate		11	%		10	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of the temporary differences that give rise to the deferred tax assets and liabilities as of October 31, 2020 and 2019 are as follows:

	2020		2019
Deferred tax assets:
Accounts receivable	$	36,468	$	36,802
Unrealized loss		140,136
Deferred rent		36,810		49,442
Deferred compensation		70,035		96,720
Net operating loss		70,275		82,973
Stock-based compensation		340,715		121,880
Inventory		87,736		92,656
Total deferred tax asset	$	782,175	$	480,473
Deferred tax liability:
Intangible assets acquired		484,932		484,932
Unrealized gain				32,656
Fixed assets		397,650	$	354,644
Total deferred tax liabilities	$	882,582	$	872,232