Income Taxes (Tables)

12 Months Ended

Nov. 05, 2016

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


	November 5, 2016		October 31, 2015
Current tax expense:
Federal	$	769,463	$	5,629
State		—		—

		769,463		5,629
Deferred tax expense		2,449,579		1,105,489
Valuation allowance		—		(975,312	)

Income tax expense	$	3,219,042	$	135,806

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:


	November 5, 2016			October 31, 2015
Provision—federal statutory tax rate	$	3,122,640		$	1,037,408
Increase (decrease) resulting from:
State taxes, net of federal tax benefit		253,435			110,759
Permanent differences:
Stock option expirations		—			6,045
Manufacturing and other deductions		(74,544	)		—
Other		(82,489	)		(43,094	)
Changes in DTA valuation allowance		—			(975,312	)

Income tax expense	$	3,219,042		$	135,806

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:


	November 5, 2016			October 31, 2015
Deferred tax assets:
Allowance for doubtful accounts	$	87,261		$	87,261
Inventories		440,988			651,980
Carrying value of other investments		6,313			1,186,668
Accrued expenses		156,260			75,141
Stock-based compensation		4,717			8,971

Total deferred tax assets		695,539			2,010,021
Deferred tax liabilities:
Depreciation		(38,050	)		(37,982	)
Installment sales of Cypress Creek		(871,277	)		—
Carrying value of investments		(302,147	)		—
State income tax refunds		—			(29,598	)
Amortization		(58,810	)		(58,810	)
Prepaid expenses		(9,011	)		(17,808	)

Net deferred tax assets (liabilities)	$	(583,756	)	$	1,865,823

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:


	November 5, 2016			October 31, 2015
Current assets:
Deferred tax assets	$	684,509		$	814,381
Deferred tax liabilities		(127,736	)		(159,188	)

Net current deferred taxes		556,773			655,193

Non-current assets:
Deferred tax assets		11,030			1,307,422
Deferred tax liabilities		(1,151,559	)		(96,792	)

Net non-current deferred taxes		(1,140,529	)		1,210,630

Net deferred tax asset (liability)	$	(583,756	)	$	1,865,823