Income Taxes

3 Months Ended

Jan. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 7 – Income Taxes

The Company accounts for income taxes pursuant to the asset and liability method which requires deferred income tax assets and liabilities to be computed for net operating loss carryforwards and temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The income tax provision or benefit is the tax incurred for the period plus or minus the change during the period in deferred tax assets and liabilities.

As of January 31, 2025 and October 31, 2024, the Company did not have any unrecognized tax benefits or open tax positions. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of January 31, 2025 and October 31, 2024, the Company had no accrued interest or penalties related to income taxes. The Company currently has no federal or state tax examinations in progress.

The Company files a U.S. federal income tax return and California, Colorado, Connecticut, Florida, Idaho, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Montana, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Virginia state tax returns.

The Company’s expense or income taxes for the quarter ended January 31, 2025 and October 31, 2024, consisted of the following:

	January 31, 2025		October 31, 2024
Current
Federal	$	233,640	$	82,332
State and local		52,625		18,544
Total		286,265		100,876
Deferred
Federal		79,820		611,317
State and local		40,007		137,692
Total		119,827		749,009
Income tax expense	$	406,092		849,885

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:

	January 31, 2025			October 31, 2024
Expense from tax at the federal statutory rate	$	327,464			644,258
Goodwill impairment		-
Other permanent differences		4,870			23,718
Return to provision		-			29,959
Deferred Tax change in effective rate		-			6,838
State and local tax, net of federal		73,758			145,112
Expense income taxes	$	406,092			849,885
Effective income tax rate		26	%		28	%