Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Nov. 30, 2017

At November 30, 2017 and November 30, 2016, respectively, the Company had temporary differences arising from the following:



	November 30, 2017
							Classified As
Type	Amount			Deferred Tax			Short-Term Asset		Long-Term Asset
Depreciation	$	(378,580	)	$	(137,992	)	$	—	$	(137,992	)
Reserve for bad debts	6,629			2,416			2,416		—
Reserve for returns	246,513			89,854			89,854		—
Accrued returns	109,646			39,966			39,966		—
Reserve for obsolete inventory	158,269			57,689			57,689		—
Vacation accrual	70,856			25,827			25,827		—
Alternative minimum tax carry forward	—			122,360			—		122,360
Deferred compensation	487,061			177,534			—		177,534
Bonus obligations unpaid	400,166			145,861			145,861		—
Charitable contributions	305,633			111,403			111,403		—
Section 263A costs	48,317			17,612			17,612		—
Loss carry forward	24,279,259			8,849,789			1,589,360		7,260,429
Net deferred tax asset				$	9,502,319		$	2,079,988	$	7,422,331

	November 30, 2016
							Classified As
Type	Amount			Deferred Tax			Short-Term Asset		Long-Term (Liability)
Depreciation	$	(349,763	)	$	(127,489	)	$	—	$	(127,489	)
Reserve for bad debts	15,801			5,759			5,759		—
Reserve for returns	941,228			343,078			343,078		—
Accrued returns	194,873			71,031			71,031		—
Reserve for obsolete inventory	500,156			182,307			182,307		—
Vacation accrual	29,528			10,763			10,763		—
Alternative minimum tax carry forward				20,000					20,000
Deferred compensation	304,945			111,153					111,153
Bonus obligations unpaid	304,355			110,937			110,937		—
Restructuring costs	925,000			337,163			337,163		—
Charitable contributions	584,558			213,071			96,249		116,822
Section 263A costs	79,539			28,992			28,992		—
Loss carry forward	25,398,347			9,257,698			962,485		8,295,213
Net deferred tax asset				$	10,564,463		$	2,148,764	$	8,415,699

Schedule of income tax expense

Income tax expense (benefit) is made up of the following components:



	November 30,
Continuing Operations	2017		2016		2015
Current tax - Federal	$	105,770	$	20,000	$	—
Current tax - State & Local	5,640		28,949		(2,795		)
Deferred tax expense (benefit)	1,062,144		899,584		(1,589,514		)
	$	1,173,554	$	948,533	$	(1,592,309	)



	November 30,
Discontinued Operations	2017		2016			2015
Current tax - Federal	$	—	$	—		$	—
Current tax - State & Local	—		—			—
Deferred tax (benefit) expense	—		(9,126		)	6,073
	$	—	$	(9,126	)	$	6,073

Schedule of prepaid and refundable income taxes

Prepaid and refundable income taxes are made up of the following components:



Prepaid and refundable income taxes	Federal		State & Local		Total
November 30, 2017	$	1,015	$	37,138	$	38,153
November 30, 2016	$	—	$	44,154	$	44,154

Schedule of components of income taxes payable

Income tax payable is made up of the following components:



Income Taxes Payable	Federal		State & Local		Total
November 30, 2017	$	—	$	—	$	—
November 30, 2016	$	20,000	$	—	$	20,000

Provision for income taxes computed at the statutory rate

A reconciliation of the (benefit from) provision for income taxes computed at the statutory rate to the effective rate for the three years ended November 30, 2017, 2016 and 2015 is as follows:




	2017				2016				2015
	Amount		Percent of Pretax Income		Amount		Percent of Pretax Income		Amount			Percent of Pretax Income
Continuing Operations
Provision for (benefit from) income taxes at federal statutory rate	$	1,021,610	34.00	%	$	728,014	34.00	%	$	(1,648,640	)	34.00	%
Changes in provision for (benefit from) income taxes resulting from:
State income taxes, net of federal income tax benefit	73,616		2.45	%	52,460		2.45	%	(140,619		)	2.90	%
Change in tax rate related to future deferred tax benefits	—		—	%	140,483		6.56	%	—			—	%
Non-deductible expenses and other adjustments	78,328		2.61	%	27,576		1.29	%	196,950			0.95	%
Provision for (benefit from) income taxes at effective rate	$	1,173,554	39.06	%	$	948,533	44.30	%	$	(1,592,309	)	37.85	%



Discontinued Operations
(Benefit from) provision for income taxes at federal statutory rate	$	—	—	%	$	(7,004	)	34.00	%	$	6,288		34.00	%
Changes in (benefit from) provision for income taxes resulting from:
State income taxes, net of federal income tax benefit	—		—	%	(505		)	2.45	%	$	536		2.90	%
Non-deductible expenses and other adjustments	—		—	%	(1,617		)	7.85	%	(751		)	(4.06	)%
(Benefit from) provision for income taxes at effective rate	$	—	—	%	$	(9,126	)	44.30	%	$	6,073		32.84	%