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Note 14 - Income Taxes | 12 Months Ended
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Nov. 30, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
(14) | Income Taxes
Total income tax expense (benefit) for the years ended November 30, 2016 and 2015 consists of the following:
|  | November 30, 2016 |  |  | November 30, 2015 |
Current Expense (benefit) |  | $ | (288,935 | ) |  | $ | (126,301 | )
Deferred expense (benefit) |  |  | (29,939 | ) |  |  | (180,919 | )
|  | $ | (318,874 | ) |  | $ | (307,220 | )
The reconciliation of the statutory Federal income tax rate is as follows:
|  | November 30, 2016 |  |  | November 30, 2015 |
Statutory federal income tax rate |  |  | 34.0 | % |  |  | 34.0 | %
Permanent Differences and Other |  |  | (6.00 | ) |  |  | 1.5 |
|  |  | 28.0 | % |  |  | 35.5 | %
Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2016 and 2015 are presented below:
|  | November 30 |
|  | 2016 |  |  | 2015 |
Current deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Accrued expenses |  | $ | 110,000 |  |  | $ | 126,000 |
NOL and tax credit carryforward |  |  | 133,000 |  |  |  | - |
Inventory capitalization |  |  | 16,000 |  |  |  | 21,000 |
Inventory obsolescence and other asset reserves |  |  | 808,000 |  |  |  | 999,000 |
Total current deferred tax assets |  | $ | 1,067,000 |  |  | $ | 1,146,000 |
Non-current deferred tax assets |  |  |  |  |  |  |  |
Property, plant, and equipment |  | $ | (737,000 | ) |  | $ | (847,000 | )
Total non-current deferred tax assets (liabilities) |  | $ | (737,000 | ) |  | $ | (847,000 | )
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on these assessments, in fiscal 2016 we have recorded a reserve against our deferred tax assets related to our net operation loss of our Canadian operations of approximately $75,000 From the time of acquisition we have not yet generated taxable income from these operations, and now believe that it is more likely than not that the amount of this deferred tax asset will not be realized. Our net operating loss and tax credit carryforward for our US operations expires on November 30, 2036. We believe that we will be able to utilize the US net operating losses before their expiration.

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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