Note 16 - Income Taxes |
9 Months Ended | ||
|---|---|---|---|
Jul. 31, 2026 | |||
| Income Taxes | |||
| Income Taxes |
For the three and nine months ended July 31, 2026, we recorded income tax (benefit) expense of $(0.6) million and $8.2 million, respectively, and $7.2 million and $25.7 million for the same periods in the prior year. The income tax expense or benefit in each period was primarily attributable to federal and state taxes on income or loss before income taxes and permanent differences, partially offset by home energy credits. Federal tax expense is not paid in cash as it is offset by the use of our existing NOL carryforwards.
The Company recognizes deferred income taxes for deferred tax benefits arising from NOL carryforwards and temporary differences between book and tax income which will be recognized in future years as an offset against future taxable income. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in estimate of our deferred tax assets (“DTAs”) that may be realized in the future. At July 31, 2026, the Company has determined that it is more likely than not that sufficient taxable income will be generated in the future to realize its DTAs, net of any state valuation allowances. |