Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
9 Months Ended
Aug. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of effect of tax rate change The following chart shows the calculation of the previous tax rate and the new tax rate:

 
Previous Rate
New Rate
Federal rate
34.00
%
21.00
%
State rate, net of federal tax benefit
2.45
%
3.13
%
Total
36.45
%
24.13
%
Summary of temporary differences At August 31, 2018 and November 30, 2017, respectively, the Company had temporary differences arising from the following:
 
 
August 31, 2018
 
November 30, 2017
Type
 
Amount
 
Deferred Tax
 
Amount
 
Deferred Tax
Depreciation
 
$
(468,017
)
 
$
(112,925
)
 
$
(378,580
)
 
$
(137,992
)
Reserve for bad debts
 
15,368

 
3,708

 
6,629

 
2,416

Reserve for returns
 
619,185

 
149,399

 
246,513

 
89,854

Accrued returns
 
110,436

 
26,646

 
109,646

 
39,966

Reserve for obsolete inventory
 
135,164

 
32,613

 
158,269

 
57,689

Vacation accrual
 
52,233

 
12,603

 
70,856

 
25,827

Alternative minimum tax carry forward
 

 
103,040

 

 
122,360

Research and development tax credit
 

 
65,175

 

 

Deferred Compensation
 
491,382

 
118,563

 
487,061

 
177,534

Bonus obligation unpaid
 

 

 
400,166

 
145,861

Charitable contributions
 
242,650

 
58,548

 
305,633

 
111,403

Section 263A costs
 
208,120

 
50,216

 
48,317

 
17,612

Loss carry forward
 
24,789,723

 
5,990,894

 
24,279,259

 
8,849,789

Net deferred tax asset
 
$
26,196,244

 
$
6,498,480

 
$
25,733,769

 
$
9,502,319

Schedule of income tax expense Income tax expense (benefit) is made up of the following components:
 
Three Months Ended
 
Nine Months Ended
 
August 31, 2018
 
August 31, 2017
 
August 31, 2018
 
August 31, 2017
 
 
 
 
 
 
 
 
Current tax - Federal
$

 
$
43,875

 
$

 
$
59,875

Current tax - State & Local
595

 
312

 
5,944

 
6,189

Deferred tax
(70,273
)
 
310,629

 
3,023,507

 
816,846

Total Income Tax (Benefit) Expense
$
(69,678
)
 
$
354,816

 
$
3,029,451

 
$
882,910

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, 2018
 
$
20,335

 
$
7,449

 
$
27,784

November 30, 2017
 
$
1,015

 
$
37,138

 
$
38,153

Schedule of income taxes payable Income taxes payable are made up of the following components:
Income Taxes Payable
 
Federal
 
State &
Local
 
Total
August 31, 2018
 
$

 
$
950

 
$
950

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, 2018, and August 31, 2017 is as follows:

 
 
Three Months Ended
 
Three Months Ended
 
 
August 31, 2018
 
August 31, 2017
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
Provision for income taxes at federal statutory rate
 
$
(57,404
)
 
21.00
%
 
$
249,050

 
34.00
%
Changes in provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(8,556
)
 
3.13
%
 
21,242

 
2.90
%
Non-deductible expenses and other adjustments
 
(3,718
)
 
1.36
%
 
84,524

 
11.54
%
(Benefit from) Provision for income taxes at effective rate
 
$
(69,678
)
 
25.49
%
 
$
354,816

 
48.44
%



Nine Months Ended

Nine Months Ended


August 31, 2018

August 31, 2017


Amount

Percent of Pretax Income

Amount

Percent of Pretax Income
Provision for (benefit from) income taxes at federal statutory rate

$
(144,312
)

21.00
 %

$
729,604


34.00
%
Increases in taxes resulting from:










State income taxes, net of federal income tax benefit

(21,509
)

3.13
 %

62,231

 
2.90
%
Change in tax rate related to future deferred tax benefits
 
3,150,147

 
(458.40
)%
 

 
%
Non-deductible expenses and other adjustments

45,125


(6.57
)%

91,075


4.24
%
Provision for income taxes at effective rate

$
3,029,451


(440.84
)%

$
882,910


41.14
%