Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

9 Months Ended

Aug. 31, 2016

At August 31, 2016 and November 30, 2016, respectively, the Company had temporary differences arising from the following:



	August 31, 2016
							Classified As
Type	Amount			Deferred Tax			Short-Term Asset		Long-Term Asset (Liability)
Depreciation	$	(246,700	)	$	(91,042	)	$	—	$	(91,042	)
Reserve for bad debts	27,625			10,195			10,195		—
Reserve for returns	717,651			264,840			264,840		—
Accrued returns	147,891			54,577			54,577		—
Reserve for obsolete inventory	331,585			122,367			122,367		—
Vacation accrual	33,533			12,375			12,375		—
Bonus obligation unpaid	—			—			—		—
Restructuring costs	1,164,672			429,807			429,807		—
Charitable contributions	712,387			262,897			88,630		174,267
Section 263A costs	99,723			36,801			36,801		—
Loss carry forward	26,573,562			9,806,619			886,300		8,920,319
Net deferred tax asset				$	10,909,436		$	1,905,892	$	9,003,544

	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					Nine Months Ended
	August 31, 2016		August 31, 2015			August 31, 2016			August 31, 2015
Continuing Operations
Current tax - Federal	$	—	$	—		$	—		$	—
Current tax - State & Local	16,365		(9,165		)	21,100			(5,138		)
Deferred tax	178,661		142,554			553,189			(728,093		)
Tax - Continuing Operations	$	195,026	$	133,389		$	574,289		$	(733,231	)
Discontinued Operations
Current tax - Federal	—		—			—			—
Current tax - State & Local	—		—			—			—
Deferred tax	—		(73,211		)	(7,704		)	28,558
Tax - Discontinued Operations	$	—	$	(73,211	)	$	(7,704	)	$	28,558

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, 2016	$	—	$	52,004	$	52,004
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 nine months ended August 31, 2016, and August 31, 2015 is as follows:



	Three Months Ended				Three Months Ended
	August 31, 2016				August 31, 2015
	Amount		Percent of Pretax Income		Amount			Percent of Pretax Income
Continuing Operations
Provision for income taxes at federal statutory rate	$	175,574	34.00	%	$	104,879		34.00	%
Changes in provision for income taxes resulting from:
State income taxes, net of federal income tax benefit	14,975		2.90	%	8,946			2.90	%
Non-deductible expenses and other adjustments	4,477		0.87	%	19,564			6.34	%
Provision for income taxes at effective rate	195,026		37.77	%	133,389			43.24	%
Discontinued Operations
(Benefit from) income taxes at federal statutory rate	$	—	—	%	$	(67,457	)	34.00	%
Changes in benefit from income taxes resulting from:
State income taxes, net of federal income tax benefit	—		—	%	(5,754		)	2.90	%
Non-deductible expenses and other adjustments	—		—	%	—			(3.22	)%
(Benefit from) income taxes at effective rate for Discontinued Operations	$	—	—	%	$	(73,211	)	33.68	%
Total Provision for income taxes at effective rate	$	195,026	37.77	%	$	60,178		54.67	%



	Nine Months Ended					Nine Months Ended
	August 31, 2016					August 31, 2015
	Amount			Percent of Pretax Income		Amount			Percent of Pretax Income
Continuing Operations
Provision for (benefit from) income taxes at federal statutory rate	$	522,105		34.00	%	$	(772,616	)	34.00	%
Increases in taxes resulting from:
State income taxes, net of federal income tax benefit	44,533			2.90	%	(65,900		)	2.90	%
Non-deductible expenses and other adjustments	7,651			0.50	%	105,285			(4.63	)%
Provision for (benefit from) income taxes at effective rate	574,289			37.40	%	(733,231		)	32.27	%

Discontinued Operations
(Benefit from) provision for income taxes at federal statutory rate	$	(7,004	)	34.00	%	$	30,092		34.00	%
Changes in (benefit from) provision for income taxes resulting from:
State income taxes, net of federal income tax benefit	—			—	%	2,567			2.90	%
Non-deductible expenses and other adjustments	(700		)	3.40	%	(4,101		)	(4.63	)%
(Benefit from) provision for income taxes at effective rate	(7,704		)	37.40	%	28,558			32.27	%

Total Provision for (benefit from) income taxes at effective rate	$	566,585		37.40	%	$	(704,673	)	32.27	%