Cryo-Cell International, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes

Income Taxes

12 Months Ended

Nov. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 6 - INCOME TAXES.

The Company recorded the following income tax provision for the years ended November 30, 2014 and 2013.


	2014		2013
Current:
Federal	$	—	$	—
State		—		—
Foreign		123,000		169,000

Subtotal		123,000		169,000
Deferred:
Federal		—		—
State		—		—
Foreign		—		—

Subtotal		—		—


Income Tax Provision	$	123,000	$	169,000

As of November 2014 and 2013 the tax effects of temporary differences that give rise to the deferred tax assets are as follows:


	2014
	Current			Non-current			Total
Tax Assets:
Deferred income (Net of Discounts)	$	217,000		$	3,934,000		$	4,151,000
NOL’s, credits, and other carryforward items		—			2,260,000			2,260,000
Tax over book basis in unconsolidated affiliate		—			1,417,000			1,417,000
Accrued payroll		49,000			—			49,000
Reserves and other accruals		1,066,000			—			1,066,000
Stock compensation		—			391,000			391,000
Depreciation and Amortization		—			165,000			165,000
RSA Buy-out		—			1,018,000			1,018,000


Total Assets:		1,332,000			9,185,000			10,517,000

Tax Liabilities:
Less: Valuation Allowance		(1,332,000	)		(9,185,000	)		(10,517,000	)

Net Deferred Tax Asset (Liability)	$	—		$	—			—


	2013
	Current			Non-current			Total
Tax Assets:
Deferred income (Net of Discounts)	$	216,000		$	3,574,000		$	3,790,000
NOL’s, credits, and other carryforward items		—			3,055,000			3,055,000
Tax over book basis in unconsolidated affiliate		—			1,285,000			1,285,000
Accrued payroll		45,000			—			45,000
Reserves and other accruals		1,099,000			—			1,099,000
Deferred compensation		—			—			—
Stock compensation		—			392,000			392,000
Depreciation and Amortization		—			96,000			96,000
RSA Buy-out		—			1,090,000			1,090,000


Total Assets:		1,360,000			9,492,000			10,852,000
Tax Liabilities:
Less: Valuation Allowance		(1,360,000	)		(9,492,000	)		(10,852,000	)

Net Deferred Tax Asset (Liability)	$	—		$	—			—

A valuation allowance covering the deferred tax assets of the Company for November 30, 2014 and November 30, 2013, has been provided as the Company does not believe it is more likely than not that all of the future income tax benefits will be realized. The valuation allowance changed by approximately ($301,000) and ($115,000) during the years ended November 30, 2014 and 2013, respectively. The 2014 change was primarily a result of NOL usage and assets relating to deferred revenue. The 2013 change was primarily a result of increased deferred assets related to foreign tax credits and bad debts.

The Company has unused net operating losses available for carryforward as of November 30, 2014 of approximately $2,133,000 to offset future federal taxable income. The net operating loss carryfowards expire during 2024 through 2033. The Tax Reform Act of 1986 contains provisions that limit the utilization of net operating losses if there has been an “ownership change”. Such an “ownership change” as described in Section 382 of the Internal Revenue code may limit the Company’s utilization of its net operating loss carryforwards.

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, 2014
	2014			%			2013			%
Tax at Federal Statutory Rate	$	272,000			34.0		$	67,000			34.0
State Income Tax Effect		29,000			3.6			7,000			3.6
Decrease in valuation allowance		(301,000	)		(37.7	)		(115,000	)		(58.4	)
Permanent Disallowances		123,000			15.2			210,000			106.6
Capital loss expirations		—			—			—			—
Foreign tax credits		(124,000	)		(15.5	)		(170,000	)		(86.3	)
Foreign tax withholding		124,000			15.5			170,000			86.3
Other		—			—			—			—

Total income taxes	$	123,000			15.1		$	169,000			85.8

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Increases or decreases to the unrecognized tax benefits could result from management’s belief that a position can or cannot be sustained upon examination based on subsequent information or potential lapse of the applicable statute of limitation for certain tax positions. There were no uncertain tax positions as of November 30, 2014 and 2013.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the years ended November 30, 2014 and 2013, the Company had no provisions for interest or penalties related to uncertain tax positions.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of November 30, 2014:


Jurisdiction	Open Tax Years	Examinations in Process
United States - Federal Income Tax	2010 - 2013	N/A
United States - Various States	2009 - 2013	N/A

- 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.

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