Annual report pursuant to Section 13 and 15(d)

Retrospective Adoption Of New Accounting Principle

v2.4.0.6
Retrospective Adoption Of New Accounting Principle
 12 Months Ended
Nov. 30, 2011
Retrospective Adoption Of New Accounting Principle [Abstract]  
Retrospective Adoption Of New Accounting Principle

NOTE 15 – RETROSPECTIVE ADOPTION OF NEW ACCOUNTING PRINCIPLE

In October 2009, the FASB amended the accounting standards related to revenue recognition for arrangements with multiple deliverables. During the first quarter of fiscal 2011, the Company adopted the new accounting principle on a retrospective basis. The Company believes retrospective adoption provides the most comparable and useful financial information for financial statement users, is more consistent with the information the Company's management uses to evaluate its business, and better reflects the underlying economic performance of the Company. The financial statements and notes to the financial statements presented herein have been adjusted to reflect the retrospective adoption of the new accounting principle. Note 1, "Basis of Presentation" under the subheadings "Retrospective Adoption of New Accounting Principle" and "Revenue Recognition for Arrangements with Multiple Deliverables" of this Form 10-Q provide additional information on the Company's change in accounting resulting from the adoption of the new accounting principle and the Company's revenue recognition accounting policy.

 

The following table presents the effects of the retrospective adoption of the new accounting principle to the Company's previously reported consolidated financial statements:

 

     As Previously
Reported		     As Adjusted  

Consolidated Statement of Stockholders Deficit as of November 30, 2009:

     

Accumulated deficit

    $ 29,308,756      $ 28,813,800   

Consolidated Balance Sheet as of November 30, 2010:

     

Current liabilities - deferred revenue

    $ 5,598,088      $ 5,472,332   

Long-term liabilities - deferred revenue

    $ 7,507,437      $ 7,015,118   

Accumulated deficit

    $ (25,898,095 )    $ (25,349,342 ) 

Consolidated Statement of Operations for the Year Ended November 30, 2010:

     

Processing and storage fees

    $ 16,120,657      $ 16,243,776   

Total revenue

    $ 17,639,576      $ 17,762,695   

Operating Income

    $ 3,222,301      $ 3,345,420   

Income before equity in losses of affiliate and income tax expense

    $ 1,964,048      $ 2,087,167   

Income before income tax expense

    $ 1,780,634      $ 1,903,753   

Income tax benefit

    $ 1,630,027      $ 1,560,705   

Net income

    $ 3,410,661      $ 3,464,458   

Net income per common share - basic

    $ 0.29      $ 0.29   

Net income per common share - diluted

    $ 0.29      $ 0.29   

Consolidated Statement of Cash Flows for the Year Ended November 30, 2010:

     

Net income

    $ 3,410,661      $ 3,464,458   

Deferred income tax benefit

    $ (1,788,241 )    $ (1,718,919 ) 

Change in deferred revenue

    $ 248,755      $ 125,636