v3.8.0.1

Income Taxes | 9 Months Ended
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Aug. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES CCA and its subsidiaries file a consolidated federal income tax return. The Company previously adopted the provisions of ASC Subtopic 740-10-25, “Uncertain Tax Positions”. Management believes that there were no unrecognized tax benefits, or tax positions that would result in uncertainty regarding the deductions taken, as of August 31, 2017 and August 31, 2016. ASC Subtopic 740-10-25 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The charitable contributions portion of the deferred tax asset and the loss carry forward has $30,725 and $7,981,743, respectively, that has been reclassified as a long-term asset, based on an estimate of the amount that will be realizable in periods greater than twelve months from August 31, 2017. At August 31, 2017 and November 30, 2016, respectively, the Company had temporary differences arising from the following:
|  | August 31, 2017
|  |  |  |  |  | Classified As
Type |  | Amount |  | Deferred Tax |  | Short-Term Asset |  | Long-Term Asset (Liability)
Depreciation |  | $ | (368,265 | ) |  | $ | (134,232 | ) |  | $ | — |  |  | $ | (134,232 | )
Reserve for bad debts |  | 9,958 |  |  | 3,630 |  |  | 3,630 |  |  | — |
Reserve for returns |  | 125,287 |  |  | 45,667 |  |  | 45,667 |  |  | — |
Accrued returns |  | 119,533 |  |  | 43,570 |  |  | 43,570 |  |  | — |
Reserve for obsolete inventory |  | 112,834 |  |  | 41,128 |  |  | 41,128 |  |  | — |
Vacation accrual |  | 49,892 |  |  | 18,186 |  |  | 18,186 |  |  | — |
Alternative minimum tax carry forward |  | — |  |  | 79,875 |  |  |  |  | 79,875 |
Deferred Compensation |  | 446,803 |  |  | 162,860 |  |  |  |  | 162,860 |
Bonus obligation unpaid |  | 480,518 |  |  | 175,149 |  |  | 175,149 |  |  | — |
Charitable contributions |  | 403,263 |  |  | 146,990 |  |  | 116,265 |  |  | 30,725 |
Section 263A costs |  | 55,976 |  |  | 20,403 |  |  | 20,403 |  |  | — |
Loss carry forward |  | 25,087,498 |  |  | 9,144,391 |  |  | 1,162,648 |  |  | 7,981,743 |
Net deferred tax asset |  |  |  | $ | 9,747,617 |  |  | $ | 1,626,646 |  |  | $ | 8,120,971 |
|  | November 30, 2016
|  |  |  |  |  | Classified As
Type |  | Amount |  | Deferred Tax |  | Short-Term Asset |  | Long-Term Asset (Liability)
Depreciation |  | $ | (349,763 | ) |  | $ | (127,489 | ) |  | $ | — |  |  | $ | (127,489 | )
Reserve for bad debts |  | 15,801 |  |  | 5,759 |  |  | 5,759 |  |  | — |
Reserve for returns |  | 941,228 |  |  | 343,078 |  |  | 343,078 |  |  | — |
Accrued Returns |  | 194,873 |  |  | 71,031 |  |  | 71,031 |  |  | — |
Reserve for obsolete inventory |  | 500,156 |  |  | 182,307 |  |  | 182,307 |  |  | — |
Vacation accrual |  | 29,528 |  |  | 10,763 |  |  | 10,763 |  |  | — |
Alternative minimum tax carry forward |  | — |  |  | 20,000 |  |  |  |  | 20,000 |
Deferred compensation |  | 304,945 |  |  | 111,153 |  |  |  |  | 111,153 |
Bonus obligation unpaid |  | 304,355 |  |  | 110,937 |  |  | 110,937 |  |  | — |
Restructuring costs |  | 925,000 |  |  | 337,163 |  |  | 337,163 |  |  | — |
Charitable contributions |  | 584,558 |  |  | 213,071 |  |  | 96,249 |  |  | 116,822 |
Section 263A costs |  | 79,539 |  |  | 28,992 |  |  | 28,992 |  |  | — |
Loss carry forward |  | 25,398,347 |  |  | 9,257,698 |  |  | 962,485 |  |  | 8,295,213 |
Net deferred tax asset |  |  |  | $ | 10,564,463 |  |  | $ | 2,148,764 |  |  | $ | 8,415,699 |
Income tax expense (benefit) is made up of the following components:
| Three Months Ended |  | Nine Months Ended
| August 31, 2017 | August 31, 2016 |  | August 31, 2017 | August 31, 2016
Continuing Operations |  |  |  |  |
Current tax - Federal | $ | 43,875 |  | $ | — |  |  | $ | 59,875 |  | $ | — |
Current tax - State & Local | 312 |  | 16,365 |  |  | 6,189 |  | 21,100 |
Deferred tax | 310,629 |  | 178,661 |  |  | 816,846 |  | 553,189 |
Tax - Continuing Operations | $ | 354,816 |  | $ | 195,026 |  |  | $ | 882,910 |  | $ | 574,289 |
Discontinued Operations |  |  |  |  |
Current tax - Federal | — |  | — |  |  | — |  | — |
Current tax - State & Local | — |  | — |  |  | — |  | — |
Deferred tax | — |  | — |  |  | — |  | (7,704 | )
Tax - Discontinued Operations | $ | — |  | $ | — |  |  | $ | — |  | $ | (7,704 | )
Prepaid and refundable income taxes are made up of the following components:
Prepaid and refundable income taxes |  | Federal |  | State & Local |  | Total
August 31, 2017 |  | $ | 26,707 |  |  | $ | 39,813 |  |  | $ | 66,520 |
November 30, 2016 |  | $ | — |  |  | $ | 44,154 |  |  | $ | 44,154 |
Income taxes payable are made up of the following components:
Income Taxes Payable |  | Federal |  | State & Local |  | Total
November 30, 2016 |  | $ | 20,000 |  |  | $ | — |  |  | $ | 20,000 |
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, 2017, and August 31, 2016 is as follows:
|  | Three Months Ended |  | Three Months Ended
|  | August 31, 2017 |  | August 31, 2016
|  | Amount |  | Percent of Pretax Income |  | Amount |  | Percent of Pretax Income
Continuing Operations |  |  |  |  |  |  |  |
Provision for income taxes at federal statutory rate |  | $ | 249,050 |  |  | 34.00 | % |  | $ | 175,574 |  |  | 34.00 | %
Changes in provision for income taxes resulting from: |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit |  | 21,242 |  |  | 2.90 | % |  | 14,975 |  |  | 2.90 | %
Non-deductible expenses and other adjustments |  | 84,524 |  |  | 11.54 | % |  | 4,477 |  |  | 0.87 | %
Provision for income taxes at effective rate |  | 354,816 |  |  | 48.44 | % |  | 195,026 |  |  | 37.77 | %
Discontinued Operations |  |  |  |  |  |  |  |
(Benefit from) income taxes at federal statutory rate |  | — |  |  | — | % |  | — |  |  | — | %
Changes in benefit from income taxes resulting from: |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit |  | — |  |  | — | % |  | — |  |  | — | %
Non-deductible expenses and other adjustments |  | — |  |  | — | % |  | — |  |  | — | %
(Benefit from) income taxes at effective rate for Discontinued Operations |  | — |  |  | — | % |  | — |  |  | — | %
Total provision for income taxes at effective rate |  | $ | 354,816 |  |  | 48.44 | % |  | $ | 195,026 |  |  | 37.77 | %
|  | Nine Months Ended |  | Nine Months Ended
|  | August 31, 2017 |  | August 31, 2016
|  | Amount |  | Percent of Pretax Income |  | Amount |  | Percent of Pretax Income
Continuing Operations |  |  |  |  |  |  |  |  |  |  |  |
Provision for income taxes at federal statutory rate |  | $ | 729,604 |  |  | 34.00 | % |  | $ | 522,105 |  |  | 34.00 | %
Increases in taxes resulting from: |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit |  | 62,231 |  |  | 2.90 | % |  | 44,533 |  |  | 2.90 | %
Non-deductible expenses and other adjustments |  | 91,075 |  |  | 4.24 | % |  | 7,651 |  |  | 0.50 | %
Provision for income taxes at effective rate |  | 882,910 |  |  | 41.14 | % |  | 574,289 |  |  | 37.40 | %
Discontinued Operations |  |  |  |  |  |  |  |
(Benefit from) provision for income taxes at federal statutory rate |  | — |  |  | — | % |  | (7,004 | ) |  | 34.00 | %
Changes in (benefit from) provision for income taxes resulting from: |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit |  | — |  |  | — | % |  | — |  |  | — | %
Non-deductible expenses and other adjustments |  | — |  |  | — | % |  | (700 | ) |  | 3.40 | %
(Benefit from) income taxes at effective rate |  | — |  |  | — | % |  | (7,704 | ) |  | 37.40 | %
Total Provision for income taxes at effective rate |  | $ | 882,910 |  |  | 41.14 | % |  | $ | 566,585 |  |  | 37.40 | %

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- References No definition available. + Details
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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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