Income Taxes (Tables)

12 Months Ended

Oct. 31, 2012

Income Taxes [Abstract]

Components of income tax (expense) benefit

 Income tax (expense) benefit consisted of the following:

	Year Ended October 31,
	2012			2011			2010
Current benefit (expense):
Federal	$	1,257,942		$	582,274		$	925,052
State		258,293			279,984			373,839
Deferred (expense) benefit		(12,329,008	)		1,586,527			(1,571,335	)
Income tax (expense) benefit - continuing operations		(10,812,773	)		2,448,785			(272,444	)
Intraperiod tax allocation expense - discontinued operations		(509,520	)		(184,087	)		(211,307	)
Total income tax (expense) benefit	$	(11,322,293	)	$	2,264,698		$	(483,751	)

Schedule of Deferred tax assets and liabilities

Deferred tax assets and liabilities are as follows:

	October 31,
	2012			2011
Deferred tax assets:
Allowance for doubtful accounts	$	466,249		$	329,860
Net operating loss carry forward		3,187,375			2,191,478
Accrued vacation		297,014			316,953
Other accrued liabilities		410,822			595,519
Intangible assets		14,201,325			11,873,969
Gross deferred tax assets		18,562,785			15,307,779
Deferred tax liabilities:
Property and equipment		(2,009,265	)		(2,951,801	)
Warrants		(374,693	)		-
Gross deferred tax liability		(2,383,958	)		(2,951,801	)
Net deferred tax asset before valuation allowance		16,178,827			12,355,978
Valuation allowance:
Beginning balance		597,711			552,783
Increase during the period		15,581,116			44,928
Ending balance		16,178,827			597,711
Net deferred tax asset	$	-		$	11,758,267

 The above net deferred tax asset is presented on the balance sheet as follows:

	2012		2011
Deferred tax asset - current	$	-	$	864,108
Deferred tax assets -non-current		-		10,894,159
	$	-	$	11,758,267

Reconciliation of statutory federal income tax rate to effective income tax rate

A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate for continuing operations is as follows:

	Year Ended October 31,
	2012		2011			2010
Statutory federal income tax rate	34.0	%		34.0	%		(34.0)	%
State taxes, net of federal benefit	3.8			5.4			54.5
Change in valuation allowance	(122.4	)		(0.7	)		(15.7	)
Selling expenses	(0.6	)		(1.2	)		(15.0	)
State apportionment and deferred tax adjustments	-			0.2			(48.3	)
Federal and state tax net operating loss adjustments	-			(1.4	)		-
Other	0.3			0.4			0.5
Effective tax rate, (expense) benefit	(84.9	)%		36.7	%		(58.0	)%