8. Income Taxes (Tables)

12 Months Ended

Oct. 31, 2020

Table Text Block Supplement [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The income tax expense for fiscal years ended October 31, 2020 and 2019 consisted of the following:

	2020	2019
Current:
Federal	$ -	$ -
State	5,000	(10,000)
Foreign	32,000	-
Income tax provision-current	$ 37,000	$ (10,000)
Deferred:
Federal	-	-
State	-	-
Total income tax expense/(benefit)	$ 37,000	$ (10,000)

Schedule of U.S federal Statutory Income Tax

The difference between income taxes expected at the U.S federal statutory income tax rate and the reported income tax expense are summarized as follows:

	2020		2019
	Amount	Percent	Amount	Percent
U.S. statutory tax	$ (2,576,000)	21.0%	$ (808,000)	21.0%
Stock compensation	84,000	-0.7%	102,000	-2.6%
Meals and entertainment	3,000	0.0%	9,000	-0.2%
State tax, net of federal benefit	(636,000)	5.2%	(164,000)	4.2%
Other	(14,000)	0.1%	44,000	-1.1%
Change in Valuation Allowance	3,176,000	-25.9%	807,000	-21.0%
Income tax (benefit)/expense, net	$ 37,000	-0.3%	$ (10,000)	0.3%

Schedule of Deferred Tax Assets and Liabilities

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

	2020	2019
Deferred tax assets and liabilities:
Net operating loss carry-forward	$ 6,356,000	$ 3,758,000
Deferred Revenue	72,000	92,000
Allowance for doubtful accounts receivable	251,000	43,000
Stock compensation-nonqualified	228,000	205,000
Accruals	53,000	81,000
ROU lease assets	(61,000)	-
ROU lease liabilities	116,000	-
Foreign tax credit	32,000	-
Deferred rent	-	29,000
Deferred interest	-	97,000
Depreciation	7,000	(427,000)
Sub-total	$ 7,054,000	$ 3,878,000
Valuation allowance	(7,054,000)	(3,878,000)
Deferred tax assets and liabilities	$ -	$ -