| Summary of Income Tax Provision (Benefit) |
The Company recorded the following income tax provision for the years ended November 30, 2025 and 2024.
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
2,131,000 |
|
|
$ |
2,085,000 |
|
State |
|
|
780,000 |
|
|
|
626,000 |
|
Subtotal |
|
|
2,911,000 |
|
|
|
2,711,000 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(2,257,000 |
) |
|
|
(1,190,000 |
) |
State |
|
|
(562,000 |
) |
|
|
881,000 |
|
Subtotal |
|
|
(2,819,000 |
) |
|
|
(309,000 |
) |
Income tax expense |
|
$ |
92,000 |
|
|
$ |
2,402,000 |
|
|
| Summary of Deferred Tax Assets and Liabilities |
As of November 30, 2025 and 2024, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:
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|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Tax assets: |
|
|
|
|
|
|
Deferred income (net of discounts) |
|
$ |
14,772,000 |
|
|
$ |
12,954,000 |
|
Tax over book basis in unconsolidated affiliate |
|
|
1,476,000 |
|
|
|
1,272,000 |
|
Accrued payroll |
|
|
455,000 |
|
|
|
444,000 |
|
Reserves and other accruals |
|
|
4,851,000 |
|
|
|
3,661,000 |
|
Stock compensation |
|
|
503,000 |
|
|
|
452,000 |
|
Depreciation and amortization |
|
|
3,077,000 |
|
|
|
3,348,000 |
|
Transaction costs |
|
|
19,000 |
|
|
|
19,000 |
|
RSA buy-out |
|
|
737,000 |
|
|
|
883,000 |
|
Lease liability |
|
|
240,000 |
|
|
|
248,000 |
|
Unrealized loss on securities |
|
|
(46,000 |
) |
|
|
(55,000 |
) |
Section 174 costs |
|
|
466,000 |
|
|
|
505,000 |
|
Total Assets: |
|
|
26,550,000 |
|
|
|
23,731,000 |
|
Tax Liabilities: |
|
|
|
|
|
|
Other |
|
|
(1,210,000 |
) |
|
|
(1,211,000 |
) |
Right-of-use asset |
|
|
(217,000 |
) |
|
|
(214,000 |
) |
Total liabilities |
|
|
(1,427,000 |
) |
|
|
(1,425,000 |
) |
Less: valuation allowance |
|
|
(1,502,000 |
) |
|
|
(1,504,000 |
) |
Net deferred tax asset |
|
$ |
23,621,000 |
|
|
$ |
20,802,000 |
|
|
| 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:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended November 30 |
|
|
|
2025 |
|
|
% |
|
|
2024 |
|
|
% |
|
Tax at federal statutory rate |
|
|
(490,803 |
) |
|
|
21.00 |
|
|
|
588,866 |
|
|
|
21.00 |
|
State income tax effect |
|
|
(91,888 |
) |
|
|
3.93 |
|
|
|
239,410 |
|
|
|
8.53 |
|
Change in valuation allowance |
|
|
(1,812 |
) |
|
|
0.08 |
|
|
|
(12,097 |
) |
|
|
(0.43 |
) |
Tax compensation differences |
|
|
278,211 |
|
|
|
(11.90 |
) |
|
|
139,893 |
|
|
|
4.99 |
|
Permanent disallowances |
|
|
46,254 |
|
|
|
(1.98 |
) |
|
|
48,811 |
|
|
|
1.74 |
|
Deferred repricing |
|
|
28,008 |
|
|
|
(1.20 |
) |
|
|
1,314,454 |
|
|
|
46.88 |
|
Uncertain tax position |
|
|
— |
|
|
|
— |
|
|
|
(4,213 |
) |
|
|
(0.15 |
) |
Deferred adjustments |
|
|
324,262 |
|
|
|
(13.88 |
) |
|
|
86,902 |
|
|
|
3.10 |
|
Total income taxes |
|
$ |
92,232 |
|
|
|
(3.95 |
) |
|
$ |
2,402,026 |
|
|
|
85.66 |
|
|