Quarterly report pursuant to sections 13 or 15(d)

Income Taxes

v2.4.0.6
Income Taxes
9 Months Ended
Jul. 31, 2012
Income Tax Disclosure [Text Block]

8.         INCOME TAXES


We file Federal and New York State income tax returns.  Due to net operating losses, the statute of limitations remains open since the fiscal year ended October 31, 1996.   We account for interest and penalties related to income tax matters in selling, general and administrative expenses. There are no unrecognized benefits as of July 31, 2012 and October 31, 2011.


During the three months ended July 31, 2011, CopyTele received a $3,000,000 license fee payment from AUO, which was subject to a $600,000 withholding tax in Taiwan. At the election of the Company, this withholding tax could be deducted or credited against future US income tax and has been reflected as a provision for income taxes in the consolidated statements of operations for the nine month and three month periods ended July 31, 2011. We have provided a valuation allowance against this deferred tax asset due to our current and historical pre-tax losses and the uncertainty regarding its realizability.