Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.5.0.2
Income Taxes (Tables)
6 Months Ended
May 31, 2016
Income Tax Disclosure [Abstract]  
Summary of temporary differences At May 31, 2016 and November 30, 2015, respectively, the Company had temporary differences arising from the following:
 
 
May 31, 2016
 
 
 
 
 
 
Classified As
Type
 
Amount
 
Deferred Tax
 
Short-Term
Asset
 
Long-Term
Asset (Liability)
Depreciation
 
$
(258,756
)
 
$
(95,490
)
 
$

 
$
(95,490
)
Reserve for bad debts
 
27,625

 
10,195

 
10,195

 

Reserve for returns
 
617,890

 
228,024

 
228,024

 

Accrued returns
 
205,652

 
75,893

 
75,893

 

Reserve for obsolete inventory
 
462,205

 
170,571

 
170,571

 

Vacation accrual
 
59,799

 
22,068

 
22,068

 

Bonus obligation unpaid
 
24,000

 
8,857

 
8,857

 

Restructuring costs
 
1,164,672

 
429,807

 
429,807

 

Charitable contributions
 
731,183

 
269,833

 
88,630

 
181,203

Section 263A costs
 
64,941

 
23,965

 
23,965

 

Loss carry forward
 
26,946,846

 
9,944,374

 
886,300

 
9,058,074

Net deferred tax asset
 
 
 
$
11,088,097

 
$
1,944,310

 
$
9,143,787

 
 
 
 
 
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
 
Six Months Ended
 
May 31,2016
May 31, 2015
 
May 31, 2016
May 31, 2015
Continuing Operations
 
 
 
 
 
Current tax - Federal
$

$

 
$

$

Current tax - State & Local
2,369

2,027

 
4,735

4,027

Deferred tax
244,685

(904,500
)
 
374,489

(864,538
)
Tax - Continuing Operations
$
247,054

$
(902,473
)
 
$
379,224

$
(860,511
)
Discontinued Operations
 
 
 
 
 
Current tax - Federal


 


Current tax - State & Local


 


Deferred tax
(4,192
)
96,634

 
(7,665
)
95,661

Tax - Discontinued Operations
$
(4,192
)
$
96,634

 
$
(7,665
)
$
95,661

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
May 31, 2016
 
$

 
$
71,466

 
$
71,466

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 and six months ended May 31, 2016, and May 31, 2015 is as follows:

 
 
Three Months Ended
 
Three Months Ended
 
 
May 31, 2016
 
May 31, 2015
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
Continuing Operations
 
 
 
 
 
 
 
 
Provision for (benefit from) income taxes at federal statutory rate
 
$
230,535

 
34.00
 %
 
$
(911,018
)
 
34.00
 %
Changes in provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
19,663

 
2.90
 %
 
(77,704
)
 
2.90
 %
Non-deductible expenses and other adjustments
 
(3,144
)
 
(0.46
)%
 
86,249

 
(3.22
)%
Provision for (benefit from) income taxes at effective rate
 
247,054

 
36.44
 %
 
(902,473
)
 
33.68
 %
Discontinued Operations
 
 
 
 
 
 
 
 
(Benefit from) provision for income taxes at federal statutory rate
 
$
(3,911
)
 
34.00
 %
 
$
97,549

 
34.00
 %
Changes in benefit from income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(334
)
 
2.90
 %
 
8,320

 
2.90
 %
Non-deductible expenses and other adjustments
 
53

 
(0.46
)%
 
(9,235
)
 
(3.22
)%
(Benefit from) provision for income taxes at effective rate for Discontinued Operations
 
$
(4,192
)
 
36.44
 %
 
$
96,634

 
33.68
 %
Total Provision for (benefit from) income taxes at effective rate
 
$
242,862

 
36.44
 %
 
$
(805,839
)
 
33.68
 %



Six Months Ended

Six Months Ended


May 31, 2016

May 31, 2015


Amount

Percent of Pretax Income

Amount

Percent of Pretax Income
Continuing Operations












Provision for (benefit from) income taxes at federal statutory rate

$
346,532


34.00
%

$
(877,495
)

34.00
 %
Increases in taxes resulting from:










State income taxes, net of federal income tax benefit

29,557


2.90
%

(74,845
)
 
2.90
 %
Non-deductible expenses and other adjustments

3,135


0.31
%

91,829


(3.56
)%
Provision for (benefit from) income taxes at effective rate

379,224


37.21
%

(860,511
)

33.34
 %









Discontinued Operations








(Benefit from) provision for income taxes at federal statutory rate

$
(7,004
)

34.00
%

$
97,549


34.00
 %
Changes in (benefit from) provision for income taxes resulting from:









State income taxes, net of federal income tax benefit



%

8,320


2.90
 %
Non-deductible expenses and other adjustments

(661
)

3.21
%

(10,208
)

(3.56
)%
(Benefit from) provision for income taxes at effective rate

(7,665
)

37.21
%

95,661


33.34
 %









Total Provision for (benefit from) income taxes at effective rate

$
371,559


37.21
%

$
(764,850
)

33.34
 %