|12 Months Ended|
Oct. 31, 2019
|Income Tax Disclosure [Abstract]|
|Income Tax Disclosure [Text Block]||
6. INCOME TAXES
Income tax provision (benefit) consists of the following:
The tax effects of temporary differences that give rise to significant portions of the deferred tax asset, net, at October 31, 2019 and 2018, are as follows:
As of October 31, 2019, we had tax net operating loss and tax credit carryforwards of approximately $81,242,000 and $1,519,000, respectively, available within statutory limits (expiring at various dates between 2020 and 2039), to offset any future regular Federal corporate taxable income and taxes payable. If the tax benefits relating to deductions of option holders’ income are ultimately realized, those benefits will be credited directly to additional paid-in capital. Certain changes in stock ownership can result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. As of October 31, 2019, management has not determined the extent of any such limitations, if any.
We had New York and California tax net operating loss carryforwards of approximately $63,485,000 and $20,441,000, respectively, as of October 31, 2019, available within statutory limits (expiring at various dates between 2020 and 2039), to offset future corporate taxable income and taxes payable, if any, under certain computations of such taxes.
We have provided a valuation allowance against our deferred tax asset due to our current and historical pre-tax losses and the uncertainty regarding their realizability. The primary differences from the Federal statutory rate of 21% and the effective rate of 0% is attributable to certain permanent differences and a change in the valuation allowance. The following is a reconciliation of income taxes at the Federal statutory tax rate to income tax expense (benefit):
During the two fiscal years ended October 31, 2019, we incurred no Federal and no State income taxes. We have no unrecognized tax benefits as of October 31, 2019 and 2018 and we account for interest and penalties related to income tax matters in general and administrative expenses. Tax years to which our net operating losses relate remain open to examination by Federal authorities and other jurisdictions to the extent which the net operating losses have yet to be utilized.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef