Income Taxes (Tables)

12 Months Ended

Oct. 31, 2015

	Year Ended October 31,
	2015			2014			2013
Current (expense) benefit:
Federal	$	198,327		$	(1,864,570	)	$	1,565,286
State		31,640			(416,620	)		434,027
Deferred benefit (expense)		(321,666	)		2,281,190			(1,894,167	)
Income tax benefit (expense) continuing operations		(91,699	)		-			105,146
Intra-period tax allocation benefit (expense) discontinued operations		-			-			(105,146	)
Total income tax benefit (expense)	$	(91,699	)	$	-		$	-

Deferred tax assets and liabilities are as follows:

	October 31,
	2015			2014
Deferred tax assets:
Allowance for doubtful accounts	$	176,254		$	238,975
Net operating loss carry forward		1,764,429			1,656,051
Accrued vacation		174,853			174,543
Accrued bonuses		31,039			23,507
Other accrued assets		332,970			186,240
Other accrued liabilities		122,076			122,586
Intangible assets		-			-
Gross deferred tax assets		2,601,621			2,401,902

Deferred tax liabilities:
Property and equipment		(947,984	)		(1,336,905	)
Intangible assets		(635,345	)		(507,009	)
Gross deferred tax liability		(1,583,329	)		(1,843,914	)
Net deferred tax asset before valuation allowance		1,018,292			557,988

Valuation allowance:
Beginning balance		557,988			2,003,440
Change during the period		460,304			(1,445,452	)
Ending balance		1,018,292			557,988
Net deferred tax asset	$	-		$	-

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,
	2015		2014		2013

Statutory federal income tax rate	34.0	%	(34.0	)%	(34.0	)%
State taxes, net of federal benefit	1.9		(7.6	)	(1.8	)
Change in valuation allowance	(28.2	)	42.8		265.8
Disallowed deferred tax asset-related party	-		-		(220.1	)
Selling expenses	(0.4	)	(1.2	)	(1.4	)
CODI, insolvency exemption debt basis	-		-		3.1
Goodwill	10.6		-		(10.3	)
Other	(26.2	)	-		0.6
Effective tax rate, (expense) benefit	(8.3	)%	-	%	1.9	%