XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Nov. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 9 - INCOME TAXES The Company recorded the following income tax provision for the years ended November 30, 2023 and 2022.
|  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |
Federal |  | $ | 1,862,000 |  |  | $ | 1,714,000 |
State |  |  | 1,046,000 |  |  |  | 566,000 |
Subtotal |  |  | 2,908,000 |  |  |  | 2,280,000 |
Deferred: |  |  |  |  |  |
Federal |  |  | (4,945,000 | ) |  |  | (1,218,000 | )
State |  |  | (1,806,000 | ) |  |  | (514,000 | )
Subtotal |  |  | (6,751,000 | ) |  |  | (1,732,000 | )
Income tax (benefit) expense |  | $ | (3,843,000 | ) |  | $ | 548,000 |
As of November 30, 2023 and 2022, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:
|  | 2023 |  |  | 2022 |
Tax assets: |  |  |  |  |  |
Deferred income (net of discounts) |  | $ | 11,945,000 |  |  | $ | 10,081,000 |
Tax over book basis in unconsolidated affiliate |  |  | 1,268,000 |  |  |  | 1,252,000 |
Accrued payroll |  |  | 465,000 |  |  |  | 335,000 |
Reserves and other accruals |  |  | 3,585,000 |  |  |  | 2,524,000 |
Stock compensation |  |  | 578,000 |  |  |  | 475,000 |
Depreciation and amortization |  |  | 3,938,000 |  |  |  | 213,000 |
Transaction costs |  |  | 20,000 |  |  |  | 20,000 |
RSA buy-out |  |  | 1,097,000 |  |  |  | 1,236,000 |
Lease liability |  |  | 305,000 |  |  |  | 171,000 |
Unrealized loss on securities |  |  | 105,000 |  |  |  | 69,000 |
Section 174 costs |  |  | 268,000 |  |  |  | — |
Total Assets: |  |  | 23,574,000 |  |  |  | 16,376,000 |
Tax Liabilities: |  |  |  |  |  |
Other |  |  | (1,273,000 | ) |  |  | (955,000 | )
Right-of-use asset |  |  | (292,000 | ) |  |  | (169,000 | )
Total liabilities |  |  | (1,565,000 | ) |  |  | (1,124,000 | )
Less: valuation allowance |  |  | (1,516,000 | ) |  |  | (1,510,000 | )
Net deferred tax asset |  | $ | 20,493,000 |  |  | $ | 13,742,000 |
A valuation allowance covering the deferred tax assets of the Company for November 30, 2023 and November 30, 2022 has been provided as the Company does not believe it is more likely than not that all of the future income tax benefits will be realized. The valuation allowance changed by approximately ($6,000) and $9,000 during the years ended November 30, 2023 and 2022, respectively. The change for year ended November 30, 2023 and 2022 was primarily due to changes in state statutory rates and expiration of capital loss carryovers. The Company evaluates the recoverability of our deferred tax assets as of the end of each quarter, weighing all positive and negative evidence, and are required to establish and maintain a valuation allowance for these assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. The weight given to the evidence is commensurate with the extent to which the evidence can be objectively verified. If negative evidence exists, positive evidence is necessary to support a conclusion that a valuation allowance is not needed. A reconciliation of the income tax provision with the amount of tax computed by applying the federal statutory rate to pretax income follows:
|  | For the Years Ended November 30 |
|  | 2023 |  |  | % |  |  | 2022 |  |  | % |
Tax at federal statutory rate |  |  | (2,806,544 | ) |  |  | 21.00 |  |  |  | 696,979 |  |  |  | 21.00 |
State income tax effect |  |  | (924,411 | ) |  |  | 6.92 |  |  |  | 50,556 |  |  |  | 1.52 |
Change in valuation allowance |  |  | 5,869 |  |  |  | (0.04 | ) |  |  | (8,865 | ) |  |  | (0.27 | )
Tax compensation differences |  |  | 94,115 |  |  |  | (0.70 | ) |  |  | 15,313 |  |  |  | 0.46 |
Permanent disallowances |  |  | 50,322 |  |  |  | (0.38 | ) |  |  | 8,266 |  |  |  | 0.25 |
Deferred repricing |  |  | (98,419 | ) |  |  | 0.74 |  |  |  | (126,306 | ) |  |  | (3.81 | )
Other |  |  | 41,220 |  |  |  | (0.32 | ) |  |  | (8,376 | ) |  |  | (0.24 | )
Uncertain tax position |  |  | (204,978 | ) |  |  | 1.53 |  |  |  | (80,027 | ) |  |  | (2.41 | )
Total income taxes |  | $ | (3,842,826 | ) |  |  | 28.75 |  |  | $ | 547,540 |  |  |  | 16.50 |
The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Increases or decreases to the unrecognized tax benefits could result from management’s belief that a position can or cannot be sustained upon examination based on subsequent information or potential lapse of the applicable statute of limitation for certain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There was approximately $1,821,000 and $1,573,000 of U.S. income taxes paid for fiscal years ended November 30, 2023 and November 30, 2022, respectively. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of November 30, 2023:
Jurisdiction |  | Open Tax Years |  | Examinations in Process
United States – Federal Income Tax |  | 2020 – 2022 |  | N/A
United States – Various States |  | 2019 - 2022 |  | N/A

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration