Income Taxes (Tables)
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9 Months Ended |
Aug. 31, 2015 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of temporary differences |
At August 31, 2015 and November 30, 2014, respectively, the Company had temporary differences arising from the following:
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August 31, 2015 |
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Classified As |
Type |
|
Amount |
|
Deferred Tax |
|
Short-Term
Asset |
|
Long-Term
Asset |
Depreciation |
|
$ |
(1,135,934 |
) |
|
$ |
(419,201 |
) |
|
$ |
— |
|
|
$ |
(419,201 |
) |
Reserve for bad debts |
|
7,635 |
|
|
2,817 |
|
|
2,817 |
|
|
— |
|
Reserve for returns |
|
328,205 |
|
|
121,120 |
|
|
121,120 |
|
|
— |
|
Reserve for obsolete inventory |
|
347,558 |
|
|
128,262 |
|
|
128,262 |
|
|
— |
|
Vacation accrual |
|
109,528 |
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|
40,420 |
|
|
40,420 |
|
|
— |
|
Accrued bonus |
|
222,000 |
|
|
81,927 |
|
|
81,927 |
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Charitable contributions |
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1,101,720 |
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|
406,575 |
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|
68,737 |
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|
337,838 |
|
Section 263A costs |
|
76,942 |
|
|
28,395 |
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|
28,395 |
|
|
— |
|
Loss carry forward |
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27,587,233 |
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10,180,700 |
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|
687,373 |
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|
9,493,327 |
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Net deferred tax asset (liability) |
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$ |
10,571,015 |
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$ |
1,159,051 |
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$ |
9,411,964 |
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November 30, 2014 |
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Classified As |
Type |
|
Amount |
|
Deferred Tax |
|
Short-Term
Asset |
|
Long-Term
(Liability) |
Depreciation |
|
$ |
(685,154 |
) |
|
$ |
(252,883 |
) |
|
$ |
— |
|
|
$ |
(252,883 |
) |
Reserve for bad debts |
|
25,124 |
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|
9,272 |
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|
9,272 |
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— |
|
Reserve for returns |
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2,942,544 |
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1,085,907 |
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|
1,085,907 |
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|
— |
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Reserve for obsolete inventory |
|
608,504 |
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|
224,560 |
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|
224,560 |
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|
— |
|
Vacation accrual |
|
148,751 |
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|
54,895 |
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|
54,895 |
|
|
— |
|
Charitable contributions |
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1,100,940 |
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|
406,287 |
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|
132,853 |
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|
273,434 |
|
Section 263A costs |
|
128,079 |
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|
47,266 |
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|
47,266 |
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— |
|
Loss carry forward |
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22,933,333 |
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8,296,176 |
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1,328,532 |
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6,967,644 |
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Net deferred tax asset (liability) |
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$ |
9,871,480 |
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$ |
2,883,285 |
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$ |
6,988,195 |
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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 |
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Nine Months Ended |
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August 31, 2015 |
August 31, 2014 |
|
August 31, 2015 |
August 31, 2014 |
Continuing Operations |
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Current tax - Federal |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
Current tax - State & Local |
(9,165 |
) |
2,000 |
|
|
(5,138 |
) |
6,000 |
|
Deferred tax |
142,554 |
|
(116,105 |
) |
|
(728,093 |
) |
(550,788 |
) |
Tax - Continuing Operations |
$ |
133,389 |
|
$ |
(114,105 |
) |
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$ |
(733,231 |
) |
$ |
(544,788 |
) |
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 |
(73,211 |
) |
508,441 |
|
|
28,558 |
|
(2,180,468 |
) |
Tax - Discontinued Operations |
$ |
(73,211 |
) |
$ |
508,441 |
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|
$ |
28,558 |
|
$ |
(2,180,468 |
) |
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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 |
August 31, 2015 |
|
$ |
— |
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|
$ |
16,766 |
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|
$ |
16,766 |
|
November 30, 2014 |
|
$ |
167,075 |
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|
$ |
286,523 |
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|
$ |
453,598 |
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| Provision for income taxes computed at the statutory rate |
A reconciliation of the provision for (benefit from) income taxes computed at the statutory rate to the effective rate for the three months ended August 31, 2015, and August 31, 2014 is as follows:
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Three Months Ended |
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Three Months Ended |
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August 31, 2015 |
|
August 31, 2014 |
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Amount |
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Percent of Pretax Income |
|
Amount |
|
Percent of Pretax Income |
Continuing Operations |
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(Benefit from) provision for income taxes at federal statutory rate |
|
$ |
104,879 |
|
|
34.00 |
% |
|
$ |
(106,493 |
) |
|
34.00 |
% |
Changes in provision (benefit) for income taxes resulting from: |
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State income taxes, net of federal income tax benefit |
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8,946 |
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|
2.90 |
% |
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(9,083 |
) |
|
2.90 |
% |
Non-deductible expenses and other adjustments |
|
19,564 |
|
|
6.34 |
% |
|
1,471 |
|
|
(0.47 |
)% |
(Benefit from) provision for income taxes at effective rate |
|
133,389 |
|
|
43.24 |
% |
|
(114,105 |
) |
|
36.43 |
% |
Discontinued Operations |
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Provision for (benefit from) income taxes at federal statutory rate |
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$ |
(67,457 |
) |
|
34.00 |
% |
|
$ |
474,525 |
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|
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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(5,754 |
) |
|
2.90 |
% |
|
40,474 |
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|
2.90 |
% |
Non-deductible expenses and other adjustments |
|
— |
|
|
— |
% |
|
(6,558 |
) |
|
(0.47 |
)% |
Provision for (benefit from) income taxes at effective rate for Discontinued Operations |
|
$ |
(73,211 |
) |
|
36.90 |
% |
|
$ |
508,441 |
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|
36.43 |
% |
Total benefit from income taxes at effective rate |
|
$ |
60,178 |
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|
54.67 |
% |
|
$ |
394,336 |
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|
36.43 |
% |
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Nine Months Ended |
|
Nine Months Ended |
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|
August 31, 2015 |
|
August 31, 2014 |
|
|
Amount |
|
Percent of Pretax Income |
|
Amount |
|
Percent of Pretax Income |
Continuing Operations |
|
|
|
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|
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|
Benefit from income taxes at statutory rate |
|
$ |
(772,616 |
) |
|
34.00 |
% |
|
$ |
(503,868 |
) |
|
34.00 |
% |
Increases in taxes resulting from: |
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State income taxes, net of federal income tax benefit |
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(65,900 |
) |
|
2.90 |
% |
|
(42,977 |
) |
|
2.90 |
% |
Non-deductible expenses and other adjustments |
|
105,285 |
|
|
(4.63 |
)% |
|
2,057 |
|
|
(0.14 |
)% |
Benefit from income taxes at effective rate |
|
$ |
(733,231 |
) |
|
32.27 |
% |
|
(544,788 |
) |
|
36.76 |
% |
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Discontinued Operations |
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Provision for (benefit from) income taxes at federal statutory rate |
|
$ |
30,092 |
|
|
34.00 |
% |
|
$ |
(2,016,693 |
) |
|
34.00 |
% |
Changes in (benefit) provision for income taxes resulting from: |
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|
State income taxes, net of federal income tax benefit |
|
2,567 |
|
|
2.90 |
% |
|
(172,012 |
) |
|
2.90 |
% |
Non-deductible expenses and other adjustments |
|
(4,101 |
) |
|
(4.63 |
)% |
|
8,237 |
|
|
(0.14 |
)% |
Provision for (benefit from) income taxes at effective rate |
|
$ |
28,558 |
|
|
32.27 |
% |
|
$ |
(2,180,468 |
) |
|
36.76 |
% |
Total benefit from income taxes at effective rate |
|
$ |
(704,673 |
) |
|
32.27 |
% |
|
$ |
(2,725,256 |
) |
|
36.76 |
% |
|