Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
9 Months Ended
Aug. 31, 2014
Income Tax Disclosure [Abstract]  
Summary of temporary differences
At August 31, 2014 and November 30, 2013, respectively, the Company had temporary differences arising from the following:
 
 
August 31, 2014
 
 
 
 
 
 
Classified As
Type
 
Amount
 
Deferred Tax
 
Short-Term
Asset
 
Long-Term
Asset
Depreciation
 
$
(1,076,428
)
 
$
(397,241
)
 
$

 
$
(397,241
)
Reserve for bad debts
 
29,577

 
10,915

 
10,915

 

Reserve for returns
 
2,988,289

 
1,102,789

 
1,102,789

 

Reserve for obsolete inventory
 
1,708,254

 
630,408

 
630,408

 

Vacation accrual
 
179,247

 
66,149

 
66,149

 

Charitable contributions
 
996,245

 
367,651

 
92,259

 
275,391

Section 263A costs
 
143,906

 
53,106

 
53,106

 

Loss carry forward
 
15,089,973

 
5,568,753

 
922,592

 
4,646,162

Net deferred tax asset (liability)
 
 
 
$
7,402,530

 
$
2,878,218

 
$
4,524,312

 
 
 
 
 
November 30, 2013
 
 
 
 
 
 
Classified As
Type
 
Amount
 
Deferred Tax
 
Short-Term
Asset
 
Long-Term
(Liability)
Depreciation
 
$
(980,638
)
 
$
(361,891
)
 
$

 
$
(361,891
)
Unrealized (gain) on investments
 
(289,021
)
 
(106,669
)
 
(106,669
)
 

Reserve for bad debts
 
56,513

 
20,855

 
20,855

 

Reserve for returns
 
2,070,223

 
763,988

 
763,988

 

Reserve for obsolete inventory
 
3,030,306

 
1,118,294

 
1,118,294

 

Vacation accrual
 
252,117

 
93,040

 
93,040

 

Charitable contributions
 
988,611

 
364,833

 
9,964

 
354,869

Section 263A costs
 
212,794

 
78,529

 
78,529

 

Loss carry forward
 
7,096,270

 
2,618,784

 
690,746

 
1,928,038

Net deferred tax asset (liability)
 
 
 
$
4,589,763

 
$
2,668,747

 
$
1,921,016

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

 
Three Months Ended
Nine Months Ended
 
August 31, 2014
 
August 31, 2013
 
August 31, 2014
 
August 31, 2013
Continuing Operations
 
 
 
 
 
 
 
Current tax - Federal
$

 
$

 
$

 
$

Current tax - State & Local
2,000

 
70,490

 
6,000

 
93,599

Deferred tax
(116,105
)
 
(525,650
)
 
(550,788
)
 
(1,554,684
)
Tax - Continuing Operations
$
(114,105
)
 
(455,160
)
 
(544,788
)
 
$
(1,461,085
)
Discontinued Operations
 
 
 
 
 
 
 
Current tax - Federal

 

 

 

Current tax - State & Local

 

 

 

Deferred tax
508,441

 
66,811

 
(2,180,468
)
 
$373,064
Tax - Discontinued Operations
$
508,441

 
$
66,811

 
$
(2,180,468
)
 
$
373,064

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
August 31, 2014
 
$
337,532

 
$
338,064

 
$
675,596

November 30, 2013
 
$
337,532

 
$
341,357

 
$
678,889

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 August 31, 2014, and August 31, 2013 is as follows:
 
 
Three Months Ended
 
Three Months Ended
 
 
August 31, 2014
 
August 31, 2013
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
Continuing Operations
 
 
 
 
 
 
 
 
(Benefit from) income taxes at federal statutory rate
 
$
(106,493
)
 
34.00
 %
 
$
(470,716
)
 
34.00
 %
Changes in (benefit) provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(9,083
)
 
2.90
 %
 
(40,149
)
 
2.90
 %
Non-deductible expenses and other adjustments
 
1,471

 
(0.47
)%
 
55,705

 
(4.02
)%
(Benefit from) income taxes at effective rate
 
(114,105
)
 
36.43
 %
 
(455,160
)
 
32.88
 %
Discontinued Operations
 
 
 
 
 
 
 
 
(Benefit from) income taxes at federal statutory rate
 
$
474,525

 
34.00
 %
 
$
69,094

 
34.00
 %
Changes in Provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
40,474

 
2.90
 %
 
5,894

 
2.90
 %
Non-deductible expenses and other adjustments
 
(6,558
)
 
(0.47
)%
 
(8,177
)
 
(4.02
)%
Provision for income taxes at effective rate for Discontinued Operations
 
$
508,441

 
36.43
 %
 
$
66,811

 
32.88
 %
 
 
 
 
 
 
 
 
 
Total provision for (benefit from) income taxes at effective rate
 
$
394,336

 
36.43
 %
 
$
(388,349
)
 
32.88
 %
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
Nine Months Ended
 
 
August 31, 2014
 
August 31, 2013
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
Continuing Operations
 
 
 
 
 
 
 
 
Benefit from income taxes at statutory rate
 
$
(503,868
)
 
34.00
 %
 
$
(1,394,004
)
 
34.00
 %
Changes in (benefit) provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(42,977
)
 
2.90
 %
 
(118,900
)
 
2.90
 %
Non-deductible expenses and other adjustments
 
2,057

 
(0.14
)%
 
51,819

 
(1.26
)%
(Benefit from) income taxes at effective rate
 
$
(544,788
)
 
36.76
 %
 
$
(1,461,085
)
 
35.64
 %
 
 
Nine Months Ended
 
Nine Months Ended
 
 
August 31, 2014
 
August 31, 2013
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
Discontinued Operations
 
 
 
 
 
 
 
 
(Benefit from) provision for income taxes at federal statutory rate
 
$
(2,016,693
)
 
34.00
 %
 
$
355,936

 
34.00
 %
Changes in (benefit) provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(172,012
)
 
2.90
 %
 
30,359

 
2.90
 %
Non-deductible expenses and other adjustments
 
8,237

 
(0.14
)%
 
(13,231
)
 
(1.26
)%
(Benefit from) provision for income taxes at effective rate
 
$
(2,180,468
)
 
36.76
 %
 
$
373,064

 
35.64
 %
 
 
 
 
 
 
 
 
 
Total (benefit from) income taxes at effective rate
 
$
(2,725,256
)
 
36.76
 %
 
$
(1,088,021
)
 
35.64
 %