Income Taxes (Tables)
|
12 Months Ended |
Nov. 30, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of Income Tax Provision (Benefit) |
The Company recorded the following income tax provision for the years ended November 30, 2024 and 2023.
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
2,085,000 |
|
|
$ |
1,862,000 |
|
State |
|
|
626,000 |
|
|
|
1,046,000 |
|
Foreign |
|
|
— |
|
|
|
— |
|
Subtotal |
|
|
2,711,000 |
|
|
|
2,908,000 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(1,190,000 |
) |
|
|
(4,945,000 |
) |
State |
|
|
881,000 |
|
|
|
(1,806,000 |
) |
Foreign |
|
|
— |
|
|
|
— |
|
Subtotal |
|
|
(309,000 |
) |
|
|
(6,751,000 |
) |
Income tax expense (benefit) |
|
$ |
2,402,000 |
|
|
$ |
(3,843,000 |
) |
|
| Summary of Deferred Tax Assets and Liabilities |
As of November 30, 2024 and 2023, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Tax assets: |
|
|
|
|
|
|
Deferred income (net of discounts) |
|
$ |
12,954,000 |
|
|
$ |
11,945,000 |
|
Tax over book basis in unconsolidated affiliate |
|
|
1,272,000 |
|
|
|
1,268,000 |
|
Accrued payroll |
|
|
444,000 |
|
|
|
465,000 |
|
Reserves and other accruals |
|
|
3,661,000 |
|
|
|
3,585,000 |
|
Stock compensation |
|
|
452,000 |
|
|
|
578,000 |
|
Depreciation and amortization |
|
|
3,348,000 |
|
|
|
3,938,000 |
|
Transaction costs |
|
|
19,000 |
|
|
|
20,000 |
|
RSA buy-out |
|
|
883,000 |
|
|
|
1,097,000 |
|
Lease liability |
|
|
248,000 |
|
|
|
305,000 |
|
Unrealized (gain) loss on securities |
|
|
(55,000 |
) |
|
|
105,000 |
|
Section 174 costs |
|
|
505,000 |
|
|
|
268,000 |
|
Total Assets: |
|
|
23,731,000 |
|
|
|
23,574,000 |
|
Tax Liabilities: |
|
|
|
|
|
|
Other |
|
|
(1,211,000 |
) |
|
|
(1,273,000 |
) |
Right-of-use asset |
|
|
(214,000 |
) |
|
|
(292,000 |
) |
Total liabilities |
|
|
(1,425,000 |
) |
|
|
(1,565,000 |
) |
Less: valuation allowance |
|
|
(1,504,000 |
) |
|
|
(1,516,000 |
) |
Net deferred tax asset |
|
$ |
20,802,000 |
|
|
$ |
20,493,000 |
|
|
| 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 |
|
|
|
2024 |
|
|
% |
|
|
2023 |
|
|
% |
|
Tax at federal statutory rate |
|
|
588,866 |
|
|
|
21.00 |
|
|
|
(2,806,544 |
) |
|
|
21.00 |
|
State income tax effect |
|
|
239,410 |
|
|
|
8.53 |
|
|
|
(924,411 |
) |
|
|
6.92 |
|
Change in valuation allowance |
|
|
(12,097 |
) |
|
|
(0.43 |
) |
|
|
5,869 |
|
|
|
(0.04 |
) |
Tax compensation differences |
|
|
139,893 |
|
|
|
4.99 |
|
|
|
94,115 |
|
|
|
(0.70 |
) |
Permanent disallowances |
|
|
48,811 |
|
|
|
1.74 |
|
|
|
50,322 |
|
|
|
(0.38 |
) |
Deferred repricing |
|
|
1,314,454 |
|
|
|
46.88 |
|
|
|
(98,419 |
) |
|
|
0.74 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
41,220 |
|
|
|
(0.32 |
) |
Uncertain tax position |
|
|
(4,213 |
) |
|
|
(0.15 |
) |
|
|
(204,978 |
) |
|
|
1.53 |
|
Prior period adjustment |
|
|
86,902 |
|
|
|
3.10 |
|
|
|
— |
|
|
|
— |
|
Total income taxes |
|
$ |
2,402,026 |
|
|
|
85.66 |
|
|
$ |
(3,842,826 |
) |
|
|
28.75 |
|
|
| Summary of Unrecognized Tax Benefits |
The following are our unrecognized tax benefits as of November 30, 2024:
|
|
|
|
|
Unrecognized tax benefits - December 1 |
|
|
70,000 |
|
Increases in prior year positions |
|
|
— |
|
Reversals of prior year positions |
|
|
(70,000 |
) |
Increases in tax positions taken in current year |
|
|
— |
|
Statute expirations |
|
|
— |
|
Unrecognized tax benefits - November 30 |
|
|
— |
|
|
| 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, 2024:
|
|
|
|
|
Jurisdiction |
|
Open Tax Years |
|
Examinations in Process |
United States – Federal Income Tax |
|
2021 – 2023 |
|
N/A |
United States – Various States |
|
2020 - 2023 |
|
N/A |
|