Income Taxes (Tables)

12 Months Ended

Oct. 31, 2015

The provision for income taxes for the years ended consists of the following:


	October 31, 2015			November 1, 2014
Current tax expense:
Federal	$	5,629		$	4,036
State		—			—

		5,629			4,036
Deferred tax expense		1,105,489			489,921
Valuation allowance		(975,312	)		(489,921	)

Income tax expense	$	135,806		$	4,036

Reconciliation Between Statutory Federal Income Tax Rate and Actual Provision for Income Taxes

The following table shows the reconciliation between the statutory federal income tax rate and the actual provision for income taxes for the years ended:


	October 31, 2015			November 1, 2014
Provision—federal statutory tax rate	$	1,037,408		$	429,057
Increase (decrease) resulting from:
State taxes, net of federal tax benefit		110,759			45,808
Permanent differences:
Stock option expirations		6,045			20,773
Other		(43,094	)		(1,681	)
Changes in DTA valuation allowance		(975,312	)		(489,921	)

Income tax expense	$	135,806		$	4,036

Deferred Tax Assets and Deferred Tax Liabilities

The types of temporary differences between the tax bases of assets and liabilities and their financial reporting amounts and the related deferred tax assets and deferred tax liabilities are as follows:


	October 31, 2015			November 1, 2014
Deferred tax assets:
Allowance for doubtful accounts	$	87,261		$	87,261
Inventories		651,980			782,308
Carrying value of other investments		1,186,668			1,939,918
Accrued expenses		75,141			58,311
Stock-based compensation		8,971			10,507
Net operating loss		—			231,289
Valuation allowance		—			(975,312	)

Total deferred tax assets		2,010,021			2,134,282
Deferred tax liabilities:
Depreciation		(37,982	)		(33,288	)
State income tax refunds		(29,598	)		(29,598	)
Amortization		(58,810	)		(58,810	)
Prepaid expenses		(17,808	)		(16,586	)

Net deferred tax assets	$	1,865,823		$	1,996,000

Accompanying Deferred Current and Non current Tax Assets and Liabilities in Consolidated Balance Sheet

These amounts are included in the accompanying consolidated balance sheets under the following captions:


	October 31, 2015			November 1, 2014
Current assets:
Deferred tax assets	$	814,381		$	927,879
Deferred tax liabilities		(159,188	)		(170,710	)
Valuation allowance		—			(248,535	)

Net current deferred taxes		655,193			508,634

Non-current assets:
Deferred tax assets		1,307,422			2,306,241
Deferred tax liabilities		(96,792	)		(92,098	)
Valuation allowance		—			(726,777	)

Net non-current deferred taxes		1,210,630			1,487,366

Net deferred tax asset	$	1,865,823		$	1,996,000