Income Taxes

3 Months Ended

Jan. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes:

Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. Factors considered included, historical results of operations, volatility of the economic conditions and projected earnings based on current operations. Based on this evidence, it is more likely than not that the deferred tax assets would be realized. Accordingly, there is no valuation allowance as of January 31, 2017 and at October 31, 2016. However, if it is determined that all or part of the deferred tax assets will not be used in the future, an adjustment to the deferred tax assets would be charged against net income in the period such determination is made. As of January 31, 2017 and October 31, 2016, net deferred tax assets were $35,719.

The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses.

In accordance with ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”, the Company classifies all deferred tax assets and liabilities as noncurrent. This ASU has been applied retrospectively to all periods presented.