XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Note 15 - Income Taxes | 12 Months Ended
--- | ---
Nov. 30, 2018
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
( 15 ) | Income Taxes
Total income tax expense (benefit) for the 2018 and 2017 fiscal years consists of the following:
|  | November 30, 2018 |  |  | November 30, 2017 |
Current Expense (benefit) |  | $ | 127,673 |  |  | $ | 15,360 |
Deferred expense (benefit) |  |  | (654,413 | ) |  |  | (572,175 | )
|  | $ | (526,740 | ) |  | $ | (556,815 | )
The reconciliation of the statutory Federal income tax rate is as follows:
|  | November 30, 2018 |  |  | November 30, 2017 |
Statutory federal income tax rate |  |  | 21.0 | % |  |  | 34.0 | %
Valuation allowance on foreign net operating loss |  |  | (1.4 | ) |  |  | (7.8 | )
Revaluation of deferred tax asset |  |  | (7.6 | ) |  |  | - |
Permanent Differences and Other |  |  | 1.5 |  |  |  | (0.7 | )
|  |  | 13.5 | % |  |  | 25.5 | %
Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2018 and 2017 are presented below:
|  | November 30 |
|  | 2018 |  |  | 2017 |
Current deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Accrued expenses |  | $ | 59,000 |  |  | $ | 95,000 |
Inventory capitalization |  |  | 73,000 |  |  |  | 33,000 |
Net operating loss and tax credit carryforward |  |  | 826,000 |  |  |  | 586,000 |
Asset reserves |  |  | 609,000 |  |  |  | 746,000 |
Total current deferred tax assets |  | $ | 1,567,000 |  |  | $ | 1,460,000 |
Non-current deferred tax assets |  |  |  |  |  |  |  |
Property, plant, and equipment |  | $ | (135,000 | ) |  | $ | (559,000 | )
Total non-current deferred tax assets (liabilities) |  | $ | (135,000 | ) |  | $ | (559,000 | )
Net deferred taxes |  | $ | 1,432,000 |  |  | $ | 901,000 |
Based on the Company’s adoption of ASU 2015 - 17, Income Taxes, the Company has prospectively classified the 2018 and 2017 net deferred tax assets as a noncurrent asset in the accompanying financial statements. 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. The Company’s net operating loss amounting to approximately $3,300,000 and tax credit carryforward amounting to approximately $124,000 for its U.S. operations expire on November 30, 2036, 2037 and 2038. Management believes that the Company will be able to utilize the U.S. net operating losses and credits before their expiration. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was enacted, which reduced the top corporate income tax rate from 35% to 21%. The Company has assessed the impact of the law on its reported assets, liabilities, and results of operations, and believes that, going forward, the overall rate reduction will have a positive impact on the Company’s net earnings in the long run. However, during the first quarter of the 2018 fiscal year, the Company substantially reduced its net deferred tax asset using the new lower rates. Based on the Company’s recorded deferred tax asset at November 30, 2017, the Company reduced the deferred tax asset by approximately $298,000, which was recorded as an adjustment to our tax provision in the first quarter of the 2018 fiscal year.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration