Income Taxes (Tables)
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6 Months Ended |
May 31, 2014
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Income Tax Disclosure [Abstract] |
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Summary of temporary differences |
At May 31, 2014 and November 30, 2013, respectively, the Company had temporary differences arising from the following:
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May 31, 2014 |
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Classified As |
Type |
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Amount |
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Deferred Tax |
|
Short-Term Asset |
|
Long-Term Asset |
Depreciation |
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$ |
(989,117 |
) |
|
$ |
(365,020 |
) |
|
$ |
— |
|
|
$ |
(365,020 |
) |
Unrealized (gain) on investments |
|
(185,107 |
) |
|
(68,311 |
) |
|
(68,311 |
) |
|
— |
|
Reserve for bad debts |
|
31,788 |
|
|
11,731 |
|
|
11,731 |
|
|
— |
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Reserve for returns |
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5,560,399 |
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2,051,991 |
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|
2,051,991 |
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|
— |
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Reserve for obsolete inventory |
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2,836,831 |
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1,046,895 |
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|
1,046,895 |
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— |
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Vacation accrual |
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194,409 |
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71,744 |
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71,744 |
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— |
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Charitable contributions |
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996,145 |
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367,613 |
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9,963 |
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|
357,650 |
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Section 263A costs |
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181,046 |
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66,813 |
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66,813 |
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— |
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Loss carry forward |
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12,376,706 |
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4,567,458 |
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1,641,077 |
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2,926,381 |
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Net deferred tax asset (liability) |
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$ |
7,750,914 |
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$ |
4,831,903 |
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$ |
2,919,011 |
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November 30, 2013 |
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Classified As |
Type |
|
Amount |
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Deferred Tax |
|
Short-Term Asset |
|
Long-Term (Liability) |
Depreciation |
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$ |
(980,638 |
) |
|
$ |
(361,891 |
) |
|
$ |
— |
|
|
$ |
(361,891 |
) |
Unrealized (gain) on investments |
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(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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Schedule of income tax expense |
Income tax (benefit) expense is made up of the following components:
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Three Months Ended |
Six Months Ended |
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May 31, 2014 |
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May 31, 2013 |
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May 31, 2014 |
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May 31, 2013 |
Continuing Operations |
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Current tax - Federal |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Current tax - State & Local |
2,800 |
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53,970 |
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4,000 |
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|
23,111 |
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Deferred tax |
(975,733 |
) |
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280,338 |
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(1,524,663 |
) |
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(559,555 |
) |
Tax - Continuing Operations |
$ |
(972,933 |
) |
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$ |
334,308 |
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$ |
(1,520,663 |
) |
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$ |
(536,444 |
) |
Discontinued Operations |
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Current tax - Federal |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Current tax - State & Local |
— |
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— |
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— |
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— |
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Deferred tax |
(1,424,866 |
) |
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(376,250 |
) |
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(1,598,929 |
) |
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(163,228 |
) |
Tax - Discontinued Operations |
$ |
(1,424,866 |
) |
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$ |
(376,250 |
) |
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$ |
(1,598,929 |
) |
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$ |
(163,228 |
) |
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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 |
May 31, 2014 |
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$ |
337,532 |
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$ |
337,921 |
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$ |
675,453 |
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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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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 months ended May 31, 2014, and May 31, 2013 is as follows:
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Three Months Ended |
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Three Months Ended |
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May 31, 2014 |
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May 31, 2013 |
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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 |
Continuing Operations |
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(Benefit from) provision for income taxes at federal statutory rate |
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$ |
(901,492 |
) |
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34.00 |
% |
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$ |
279,096 |
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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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(76,892 |
) |
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2.90 |
% |
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23,805 |
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2.90 |
% |
Non-deductible expenses and other adjustments |
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5,451 |
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(0.21 |
)% |
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31,407 |
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3.83 |
% |
(Benefit from) provision for income taxes at effective rate |
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$ |
(972,933 |
) |
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36.69 |
% |
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$ |
334,308 |
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|
40.73 |
% |
Discontinued Operations |
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(Benefit from) income taxes at federal statutory rate |
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$ |
(1,320,240 |
) |
|
34.00 |
% |
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$ |
(346,681 |
) |
|
34.00 |
% |
Changes in (benefit from) income taxes resulting from: |
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State income taxes, net of federal income tax benefit |
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(112,609 |
) |
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2.90 |
% |
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(29,569 |
) |
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2.90 |
% |
Non-deductible expenses and other adjustments |
|
7,983 |
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(0.21 |
)% |
|
— |
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— |
% |
(Benefit from) for income taxes at effective rate for Discontinued Operations |
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$ |
(1,424,866 |
) |
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36.69 |
% |
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$ |
(376,250 |
) |
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36.90 |
% |
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Total (benefit from) income taxes at effective rate |
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$ |
(2,397,799 |
) |
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36.69 |
% |
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$ |
(41,942 |
) |
|
21.10 |
% |
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Six Months Ended |
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Six Months Ended |
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May 31, 2014 |
|
May 31, 2013 |
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|
Amount |
|
Percent of Pretax Income |
|
Amount |
|
Percent of Pretax Income |
Continuing Operations |
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Provision for income taxes at statutory rate |
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$ |
(1,408,061 |
) |
|
34.00 |
% |
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$ |
(487,968 |
) |
|
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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(120,099 |
) |
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2.90 |
% |
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(41,621 |
) |
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2.90 |
% |
Non-deductible expenses and other adjustments |
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7,497 |
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(0.18 |
)% |
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(6,855 |
) |
|
0.48 |
% |
(Benefit from) income taxes at effective rate |
|
$ |
(1,520,663 |
) |
|
36.72 |
% |
|
$ |
(536,444 |
) |
|
37.38 |
% |
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Six Months Ended |
|
Six Months Ended |
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|
May 31, 2014 |
|
May 31, 2013 |
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|
Amount |
|
Percent of Pretax Income |
|
Amount |
|
Percent of Pretax Income |
Discontinued Operations |
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(Benefit from) provision for income taxes at federal statutory rate |
|
$ |
(1,480,532 |
) |
|
34.00 |
% |
|
$ |
(148,477 |
) |
|
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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(126,281 |
) |
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2.90 |
% |
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(12,664 |
) |
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2.90 |
% |
Non-deductible expenses and other adjustments |
|
7,884 |
|
|
(0.18 |
)% |
|
(2,087 |
) |
|
0.48 |
% |
(Benefit from) income taxes at effective rate |
|
$ |
(1,598,929 |
) |
|
36.72 |
% |
|
$ |
(163,228 |
) |
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37.38 |
% |
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Total (benefit from) income taxes at effective rate |
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$ |
(3,119,592 |
) |
|
36.72 |
% |
|
$ |
(699,672 |
) |
|
37.38 |
% |
|