Annual report pursuant to Section 13 and 15(d)

Prior Period Adjustment

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Prior Period Adjustment
 12 Months Ended
Nov. 30, 2011
Prior Period Adjustment [Abstract]  
PRIOR PERIOD ADJUSTMENT

NOTE 13 — PRIOR PERIOD ADJUSTMENT

An error was discovered in the November 2010 financial statements, whereby accounts payable was overstated by $595,086. This error occurred over several years originating prior to fiscal 2006, and was not material in any one year. This error has also resulted in a reduction of the current deferred tax asset by $243,391 due to the decrease in the net operating loss carried forward. The cumulative effect of the change resulted in an increase of $351,695 to retained earnings as of November 30, 2010. Management reviewed this adjustment from both a quantitative and qualitative basis, and does not believe this adjustment is material to the financial statements. Accordingly the previously filed 10-K for the year ended November 30, 2010 was not amended. If the 10-K was amended, it would have reflected an additional expense in fiscal 2010 of $13,796 and additional income of $53,266 in fiscal 2009. No adjustment to earnings (loss) per share would have been required for the fiscal years 2010 and 2009. The following are the original and revised amounts:

 

 

CONSOLIDATED BALANCE SHEETS

As of November 30, 2010

 

      September 30,       September 30,       September 30,  
    Original     Revised     Change  

Deferred Income Tax

   $ 1,999,174     $ 1,755,783     $ (243,391 ) 
   

 

 

    

 

 

    

 

 

  

Total Assets

     36,555,590       36,312,199       (243,391 ) 
   

 

 

    

 

 

    

 

 

  
       

Accounts Payable

     9,101,365       8,506,279       (595,086 ) 

Retained Earnings

     24,454,779       24,806,474       351,695  
   

 

 

    

 

 

    

 

 

  

Total Liabilities and Shareholders’ Equity

   $ 36,555,590     $ 36,312,199     $ (243,391 )