Annual report pursuant to Section 13 and 15(d)

Impact of Superstorm Sandy

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Impact of Superstorm Sandy
12 Months Ended
Nov. 30, 2013
Risks and Uncertainties [Abstract]  
Impact of Superstorm Sandy
IMPACT OF SUPERSTORM SANDY
As a result of Super Storm Sandy, the Company made claims for loss against various insurance policies. In the case of one claim for $340,689, the Company did not determine the claim was realizable until May 2013 and received proceeds of $340,689 in June 2013. The Company recorded the proceeds as a reduction of selling, general and administrative expenses on the Consolidated Statements of Operations for the fiscal year ended 2013.
On October 30, 2012, Superstorm Sandy caused widespread flooding on the New Jersey coast, resulting in substantial water damage to the Company’s offices and warehouse. The Company has a flood insurance policy with a loss limit of $1,000,000. The Company received $200,000 of the insurance proceeds in November 2012 and recorded an insurance receivable in the amount of $800,000 as of the same date. The Company received the $800,000 of insurance proceeds in first quarter of fiscal 2013.
The Company incurred a total net loss of $128,554 as a result of Superstorm Sandy that is recorded in the results for the year ended November 30, 2012. The following chart shows the components of the loss:
Superstorm Sandy Losses
For the year ended November 30, 2012
Inventory at Cost
$
437,088

Loss on Disposal of Assets Destroyed
79,893

Cleanup & Water Removal Costs
327,641

Leased Office Equipment Destroyed
145,661

Other Expenses
138,271

 
 
Total Expenses
1,128,554

Less: Insurance Proceeds
1,000,000

 
 
Net Loss
$
128,554