INCOME TAXES |
9 Months Ended |
|---|---|
Jul. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | Note 17 – INCOME TAXES
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. The provision for income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items recognized in the applicable reporting period. The estimated annual effective tax rate is updated quarterly based on the most current information available. Changes in the estimated annual effective tax rate are recognized in the period in which the change is identified.
The Company’s quarterly income tax provision and estimated annual effective tax rate may vary significantly from period to period due to several factors, including the level and mix of earnings among taxing jurisdictions, the timing and impact of intercompany transactions, the applicability of special tax regimes, changes in the Company’s operating structure, fluctuations in foreign currency exchange rates, stock-based compensation, and changes in tax laws, regulations, and administrative practices.
The One Big Beautiful Bill Act of 2025 (the “2025 Tax Act”) was enacted on July 4, 2025. The 2025 Tax Act includes several changes to U.S. corporate income tax rules, including the reinstatement of 100% accelerated depreciation for qualified property, retroactive to January 20, 2025, and the immediate expensing of domestic research and development costs, retroactive to January 1, 2025. For fiscal year 2026, the Company does not expect these provisions to have a material impact on its U.S. cash tax obligations.
Beginning in fiscal year 2027, the Company expects its income tax provision to increase primarily as a result of a reduction in the foreign income deduction available under the global intangible low-taxed income (“GILTI”) provisions of the 2025 Tax Act.
The Company continues to evaluate the impact of the 2025 Tax Act and other enacted or proposed tax law changes as additional guidance becomes available. Any resulting adjustments will be recognized in the period in which such information becomes available and the effects can be reasonably estimated.
The Company’s estimated effective tax rate for the three months ended July 31, 2026 and 2025 was 22.4% and 16.9%, respectively. Current income tax expense for the three months ended July 31, 2026 and 2025 was $408,583 and $268,786, respectively.
The Company’s estimated effective tax rate for the nine months ended July 31, 2026 and 2025 was 21.4% and 17.1%, respectively. Current income tax expense for the nine months ended July 31, 2026 and 2025 was $1,104,002 and $692,361, respectively.
Deferred income tax benefit for the three months ended July 31, 2026 was $6,844, compared to a deferred income tax benefit of $8,022 for the three months ended July 31, 2025. Deferred income tax benefit for the nine months ended July 31, 2026 was $10,371, compared to a deferred income tax benefit of $52,864 for the nine months ended July 31, 2025. |