Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.3.1.900
Income Taxes (Tables)
3 Months Ended
Feb. 29, 2016
Income Tax Disclosure [Abstract]  
Summary of temporary differences
At February 29, 2016 and November 30, 2015, respectively, the Company had temporary differences arising from the following:
 
 
February 29, 2016
 
 
 
 
 
 
Classified As
Type
 
Amount
 
Deferred Tax
 
Short-Term
Asset
 
Long-Term
Asset (Liability)
Depreciation
 
$
(254,298
)
 
$
(93,845
)
 
$

 
$
(93,845
)
Reserve for bad debts
 
4,102

 
1,514

 
1,514

 

Reserve for returns
 
843,885

 
311,425

 
311,425

 

Accrued returns
 
315,841

 
116,557

 
116,557

 

Reserve for obsolete inventory
 
604,176

 
222,963

 
222,963

 

Vacation accrual
 
54,218

 
20,009

 
20,009

 

Bonus obligation unpaid
 
24,000

 
8,857

 
8,857

 

Restructuring costs
 
1,332,508

 
491,744

 
491,744

 

Charitable contributions
 
724,997

 
267,550

 
88,630

 
178,920

Section 263A costs
 
64,129

 
23,666

 
23,666

 

Loss carry forward
 
26,984,182

 
9,958,152

 
886,299

 
9,071,853

Net deferred tax asset
 
 
 
$
11,328,592

 
$
2,171,664

 
$
9,156,928

 
 
 
 
 
November 30, 2015
 
 
 
 
 
 
Classified As
Type
 
Amount
 
Deferred Tax
 
Short-Term
Asset
 
Long-Term
Asset (Liability)
Depreciation
 
$
(250,811
)
 
$
(92,558
)
 
$

 
$
(92,558
)
Reserve for bad debts
 
4,911

 
1,812

 
1,812

 

Reserve for returns
 
907,777

 
335,003

 
335,003

 

Accrued Returns
 
407,992

 
150,564

 
150,564

 

Reserve for obsolete inventory
 
821,259

 
303,075

 
303,075

 

Vacation accrual
 
35,955

 
13,269

 
13,269

 

Bonus obligation unpaid
 
24,000

 
8,857

 
8,857

 

Restructuring costs
 
1,264,218

 
466,544

 
466,544

 

Charitable contributions
 
734,643

 
271,109

 
86,402

 
184,707

Section 263A costs
 
67,129

 
24,773

 
24,773

 

Loss carry forward
 
27,022,986

 
9,972,473

 
864,023

 
9,108,450

Net deferred tax asset
 
 
 
$
11,454,921

 
$
2,254,322

 
$
9,200,599

Schedule of income tax expense
Income tax expense (benefit) is made up of the following components:
 
Three Months Ended
 
 
February 29, 2016
February 28, 2015
 
Continuing Operations
 
 
 
Current tax - Federal
$

$

 
Current tax - State & Local
2,367

2,000

 
Deferred tax
129,855

38,988

 
Tax - Continuing Operations
$
132,222

$
40,988

 
Discontinued Operations
 
 
 
Current tax - Federal


 
Current tax - State & Local


 
Deferred tax
(3,525
)

 
Tax - Discontinued Operations
$
(3,525
)
$

 
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
February 29, 2016
 
$

 
$
73,834

 
$
73,834

November 30, 2015
 
$

 
$
70,056

 
$
70,056

Provision for income taxes computed at the statutory rate
A reconciliation of the provision for income taxes computed at the statutory rate to the effective rate for the three months ended February 29, 2016, and February 28, 2015 is as follows:

 
 
Three Months Ended
 
Three Months Ended
 
 
February 29, 2016
 
February 28, 2015
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
Continuing Operations
 
 
 
 
 
 
 
 
Provision for income taxes at federal statutory rate
 
$
115,995

 
34.00
%
 
$
33,523

 
34.00
%
Changes in provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
9,894

 
2.90
%
 
2,859

 
2.90
%
Non-deductible expenses and other adjustments
 
6,333

 
1.86
%
 
4,606

 
4.67
%
Provision for income taxes at effective rate
 
132,222

 
38.76
%
 
40,988

 
41.57
%
Discontinued Operations
 
 
 
 
 
 
 
 
Benefit from income taxes at federal statutory rate
 
$
(3,093
)
 
34.00
%
 
$

 
%
Changes in benefit from income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(264
)
 
2.90
%
 

 
%
Non-deductible expenses and other adjustments
 
(168
)
 
1.85
%
 

 
%
Benefit from income taxes at effective rate for Discontinued Operations
 
$
(3,525
)
 
38.75
%
 
$

 
%
Total benefit from income taxes at effective rate
 
$
128,697

 
38.76
%
 
$
40,988

 
41.57
%