Income Taxes (Tables)
|
12 Months Ended |
Nov. 30, 2021 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of Income Tax Provision (Benefit) |
The Company recorded the following income tax provision for the years ended November 30, 2021 and 2020.
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
1,468,000 |
|
|
$ |
1,757,000 |
|
State |
|
|
740,000 |
|
|
|
598,000 |
|
Foreign |
|
|
(34,000 |
) |
|
|
68,000 |
|
Subtotal |
|
|
2,174,000 |
|
|
|
2,423,000 |
|
|
|
|
|
|
|
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(1,024,000 |
) |
|
|
(847,000 |
) |
State |
|
|
(622,000 |
) |
|
|
(161,000 |
) |
Foreign |
|
|
— |
|
|
|
— |
|
Subtotal |
|
|
(1,646,000 |
) |
|
|
(1,008,000 |
) |
Income tax expense |
|
$ |
528,000 |
|
|
$ |
1,415,000 |
|
|
| Summary of Deferred Tax Assets and Liabilities |
As of November 30, 2021 and 2020, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
Tax assets: |
|
|
|
|
|
|
Deferred income (net of discounts) |
|
$ |
8,507,000 |
|
|
$ |
7,024,000 |
|
Tax over book basis in unconsolidated affiliate |
|
|
1,246,000 |
|
|
|
1,209,000 |
|
Accrued payroll |
|
|
109,000 |
|
|
|
100,000 |
|
Reserves and other accruals |
|
|
2,341,000 |
|
|
|
1,895,000 |
|
Stock compensation |
|
|
414,000 |
|
|
|
567,000 |
|
Depreciation and amortization |
|
|
499,000 |
|
|
|
483,000 |
|
Transaction costs |
|
|
19,000 |
|
|
|
19,000 |
|
RSA buy-out |
|
|
1,374,000 |
|
|
|
1,482,000 |
|
Lease liability |
|
|
174,000 |
|
|
|
81,000 |
|
Unrealized loss on securities |
|
|
68,000 |
|
|
|
— |
|
Total assets |
|
|
14,751,000 |
|
|
|
12,860,000 |
|
|
|
|
|
|
|
|
Tax liabilities: |
|
|
|
|
|
|
Unrealized gains on securities |
|
|
— |
|
|
|
(134,000 |
) |
NOLs, credits, and other carryforward items |
|
|
(1,050,000 |
) |
|
|
(782,000 |
) |
Right-of-use asset |
|
|
(172,000 |
) |
|
|
(81,000 |
) |
Total liabilities |
|
|
(1,222,000 |
) |
|
|
(997,000 |
) |
Less: valuation allowance |
|
|
(1,519,000 |
) |
|
|
(1,499,000 |
) |
Net deferred tax asset |
|
$ |
12,010,000 |
|
|
$ |
10,364,000 |
|
|
| Summary of Federal Statutory Rate to Pretax Income |
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 |
|
|
|
2021 |
|
|
% |
|
|
2020 |
|
|
% |
|
Tax at federal statutory rate |
|
|
548,358 |
|
|
|
21.00 |
|
|
|
1,061,885 |
|
|
|
21.00 |
|
State income tax effect |
|
|
175,654 |
|
|
|
6.73 |
|
|
|
282,514 |
|
|
|
5.59 |
|
Change in valuation allowance |
|
|
20,262 |
|
|
|
0.77 |
|
|
|
(147,528 |
) |
|
|
(2.92 |
) |
Tax compensation differences |
|
|
212,217 |
|
|
|
8.13 |
|
|
|
6,870 |
|
|
|
0.14 |
|
Permanent disallowances |
|
|
34,356 |
|
|
|
1.31 |
|
|
|
55,372 |
|
|
|
1.10 |
|
Deferred repricing |
|
|
(334,874 |
) |
|
|
(12.82 |
) |
|
|
80,692 |
|
|
|
1.60 |
|
Other |
|
|
(93,976 |
) |
|
|
(3.60 |
) |
|
|
74,922 |
|
|
|
1.47 |
|
Foreign tax credits |
|
|
— |
|
|
|
— |
|
|
|
(68,102 |
) |
|
|
(1.35 |
) |
Foreign tax withholding |
|
|
(34,287 |
) |
|
|
(1.31 |
) |
|
|
68,102 |
|
|
|
1.35 |
|
Total income taxes |
|
$ |
527,710 |
|
|
|
20.21 |
|
|
$ |
1,414,727 |
|
|
|
27.98 |
|
|
| Summary of Open Tax Years and Ongoing Tax Examinations in Major Jurisdictions |
The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of November 30, 2021:
|
|
|
|
|
Jurisdiction |
|
Open Tax Years |
|
Examinations in Process |
United States – Federal Income Tax |
|
2018 – 2020 |
|
N/A |
United States – Various States |
|
2017 - 2020 |
|
N/A |
|