Income Taxes (Tables)
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12 Months Ended |
Nov. 30, 2013
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Income Tax Disclosure [Abstract] |
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Summary of temporary differences |
At November 30, 2013 and November 30, 2012, respectively, the Company had temporary differences arising from the following:
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November 30, 2013 |
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Classified As |
Type |
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Amount |
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Deferred Tax |
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Short-Term Asset |
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Long-Term Asset |
Depreciation |
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$ |
(980,638 |
) |
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$ |
(361,891 |
) |
|
$ |
— |
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|
$ |
(361,891 |
) |
Unrealized (gain) on investments |
|
(289,021 |
) |
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(106,669 |
) |
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(106,669 |
) |
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— |
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Reserve for bad debts |
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56,513 |
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20,855 |
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20,855 |
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— |
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Reserve for returns |
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2,070,223 |
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763,988 |
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763,988 |
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— |
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Reserve for obsolete inventory |
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3,030,306 |
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1,118,294 |
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1,118,294 |
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— |
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Vacation accrual |
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252,117 |
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93,040 |
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93,040 |
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— |
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Charitable contributions |
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988,611 |
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364,833 |
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9,964 |
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354,869 |
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Section 263A costs |
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212,794 |
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78,529 |
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78,529 |
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— |
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Loss carry forward |
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7,096,270 |
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2,618,784 |
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690,746 |
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1,928,038 |
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Net deferred tax asset (liability) |
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$ |
4,589,763 |
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$ |
2,668,747 |
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$ |
1,921,016 |
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November 30, 2012 |
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Classified As |
Type |
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Amount |
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Deferred Tax |
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Short-Term Asset |
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Long-Term (Liability) |
Depreciation |
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$ |
(1,028,273 |
) |
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$ |
(379,470 |
) |
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$ |
— |
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$ |
(379,470 |
) |
Unrealized (gain) on investments |
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(55,863 |
) |
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(20,616 |
) |
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(20,616 |
) |
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— |
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Reserve for bad debts |
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26,340 |
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9,721 |
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9,721 |
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— |
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Reserve for returns |
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1,772,405 |
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654,083 |
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654,083 |
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— |
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Reserve for obsolete inventory |
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671,609 |
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247,849 |
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247,849 |
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— |
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Vacation accrual |
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323,470 |
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119,372 |
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119,372 |
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— |
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Charitable contributions |
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722,555 |
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266,649 |
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126,852 |
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139,797 |
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Section 263A costs |
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285,129 |
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105,223 |
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105,223 |
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— |
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Net deferred tax asset (liability) |
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$ |
1,002,811 |
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$ |
1,242,484 |
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$ |
(239,673 |
) |
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Schedule of income tax expense |
Income tax (benefit) expense is made up of the following components:
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November 30, 2013 |
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Federal |
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State & Local |
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Total |
Current tax expense |
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— |
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93,270 |
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93,270 |
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Deferred tax (benefit) expense |
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(3,382,837 |
) |
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(290,167 |
) |
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(3,673,004 |
) |
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(3,382,837 |
) |
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(196,897 |
) |
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(3,579,734 |
) |
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November 30, 2012 |
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Federal |
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State & Local |
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Total |
Current tax expense |
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2,033 |
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20,907 |
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22,940 |
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Deferred tax expense |
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310,713 |
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144,877 |
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455,590 |
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312,746 |
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165,784 |
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478,530 |
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November 30, 2011 |
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Federal |
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State & Local |
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Total |
Current tax expense |
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147,471 |
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180,948 |
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328,419 |
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Deferred tax expense |
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59,776 |
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73,346 |
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133,122 |
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207,247 |
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254,294 |
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461,541 |
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Schedule of prepaid and refundable income taxes |
Prepaid and refundable income taxes are made up of the following components:
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Prepaid and refundable income taxes |
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Federal |
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State & Local |
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Total |
November 30, 2013 |
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$ |
337,532 |
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$ |
341,357 |
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$ |
678,889 |
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November 30, 2012 |
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$ |
377,292 |
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$ |
367,885 |
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$ |
745,177 |
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Schedule of income tax payable |
Income tax payable is made up of the following components:
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Income Taxes Payable |
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Federal |
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State & Local |
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Total |
November 30, 2013 |
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$ |
— |
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$ |
— |
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$ |
— |
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November 30, 2012 |
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$ |
— |
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$ |
9,440 |
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$ |
9,440 |
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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, 2013, 2012 and 2011 is as follows:
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2013 |
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2012 |
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2011 |
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Amount |
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Percent of Pretax Income |
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Amount |
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Percent of Pretax Income |
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Amount |
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Percent of Pretax Income |
(Benefit from) provision for income taxes at federal statutory rate |
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$ |
(3,322,814 |
) |
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34.00 |
% |
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$ |
320,954 |
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34.00 |
% |
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$ |
324,101 |
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34.00 |
% |
Changes in (benefit) provision for income taxes resulting from: |
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State income taxes, net of federal income tax benefit |
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(283,416 |
) |
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2.90 |
% |
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117,290 |
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12.43 |
% |
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104,465 |
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10.96 |
% |
Non-deductible expenses and other adjustments |
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26,496 |
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(0.27 |
)% |
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40,286 |
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4.26 |
% |
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32,975 |
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3.46 |
% |
(Benefit from) provision for income taxes at effective rate |
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$ |
(3,579,734 |
) |
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36.63 |
% |
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$ |
478,530 |
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50.69 |
% |
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$ |
461,541 |
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48.42 |
% |
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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, 2013, 2012 and 2011 is as follows:
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2013 |
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2012 |
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2011 |
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Amount |
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Percent of Pretax Income |
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Amount |
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Percent of Pretax Income |
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Amount |
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Percent of Pretax Income |
(Benefit from) provision for income taxes at federal statutory rate |
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$ |
(3,322,814 |
) |
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34.00 |
% |
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$ |
320,954 |
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34.00 |
% |
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$ |
324,101 |
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34.00 |
% |
Changes in (benefit) provision for income taxes resulting from: |
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State income taxes, net of federal income tax benefit |
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(283,416 |
) |
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2.90 |
% |
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117,290 |
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12.43 |
% |
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104,465 |
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10.96 |
% |
Non-deductible expenses and other adjustments |
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26,496 |
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(0.27 |
)% |
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40,286 |
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4.26 |
% |
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32,975 |
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3.46 |
% |
(Benefit from) provision for income taxes at effective rate |
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$ |
(3,579,734 |
) |
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36.63 |
% |
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$ |
478,530 |
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50.69 |
% |
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$ |
461,541 |
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|
48.42 |
% |
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