Income Taxes (Tables)

12 Months Ended

Nov. 02, 2019

Income Tax Disclosure [Abstract]

Summary of Provision for Income Taxes

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

	November 2, 2019			November 3, 2018
Current tax expense:
Federal	$	2,338,619		$	1,681,641
State		655,498			403,874
					2,085,515
Deferred tax (benefit)		(25,007	)		(443,685	)
Provision for income taxes	$	2,969,109		$	1,641,830

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 2, 2019			November 3, 2018
Provision—federal statutory tax rate	$	2,473,701		$	1,541,697
Increase (decrease) resulting from:
State taxes, net of federal tax benefit		511,821			278,507
Permanent differences:
Stock option expirations		160			(178	)
Decrease in federal tax rate		—			(171,248	)
Other comprehensive income		(3,462	)		86,882
Other		(13,112	)		(93,830	)
Income tax expense	$	2,969,109		$	1,641,830

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 2, 2019			November 3, 2018
Deferred tax assets:
Allowance for doubtful accounts	$	58,773		$	58,773
Inventories		48,360			158,598
Accrued expenses		158,171			144,814
Other Assets		55,903			—
Stock-based compensation		2,072			1,312
Total deferred tax assets		323,279			363,497
Deferred tax liabilities:
Depreciation		(78,553	)		(39,490	)
Carrying value of investments		(90,168	)		(221,600	)
Amortization		(39,611	)		(39,611	)
Prepaid expenses		(34,542	)		(22,640	)
Net deferred tax assets (liabilities)	$	80,405		$	40,156

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 2, 2019			November 3, 2018
Current assets (liabilities):
Deferred tax assets	$	—		$	—
Deferred tax liabilities		—			—
Net current deferred tax assets		—			—
Non-current assets (liabilities):
Deferred tax assets		323,279			363,498
Deferred tax liabilities		(242,874	)		(323,342	)
Net non-current deferred tax (liabilities)		80,405			40,156
Net deferred tax assets (liabilities)	$	80,405		$	40,156