Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Nov. 30, 2019
Income Tax Disclosure [Abstract]  
Summary of Income Tax Provision (Benefit)
The Company recorded the following income tax provision for the years ended November 30, 2019 and 2018.
 
    
2019
     
2018
  
Current:
      
Federal
    $ 1,637,000      $ 1,467,000  
State
      769,000        622,000  
Foreign
      108,000        108,000  
  
 
 
     
 
 
  
Subtotal
      2,514,000        2,197,000  
Deferred:
      
Federal
      (1,106,000 )       2,716,000  
State
      (307,000 )       (441,000 ) 
Foreign
      —        —  
  
 
 
     
 
 
  
Subtotal
      (1,413,000 )       2,275,000  
  
 
 
     
 
 
  
Income Tax Expense
    $ 1,101,000      $ 4,472,000  
               
Summary of Deferred Tax Assets and Liabilities
As of November 201
9
and 2018, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:
 
    
2019
     
2018
  
Tax Assets:
      
Deferred income (Net of Discounts)
    $ 6,256,000      $ 5,157,000  
Tax over book basis in unconsolidated affiliate
      1,224,000        1,214,000  
Accrued payroll
      82,000        257,000  
Reserves and other accruals
      1,589,000        868,000
Stock compensation
      411,000        330,000  
Depreciation and Amortization
      450,000        428,000  
Transaction costs
      18,000        18,000  
RSA
Buy-out
      1,095,000        1,210,000  
  
 
 
     
 
 
  
Total Assets:
      11,125,000        9,482,000  
Tax Liabilities:
      
Unrealized gains on
marketable
securities
      (117,000 )       (112,000 ) 
NOL’s credits, and other carryforward items
      (282,000 )       (79,000 ) 
  
 
 
     
 
 
  
Total Liabilities:
      (399,000 )       (191,000 ) 
Less: Valuation Allowance
      (1,646,000 )       (1,634,000 ) 
  
 
 
     
 
 
  
Net Deferred Tax Asset
    $ 9,080,000      $ 7,657,000  
  
 
 
     
 
 
  
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
  
    
2019
     
%
     
2018
     
%
  
Tax at Federal Statutory Rate
      733,198        21.00        799,507        22.10  
State Income Tax Effect
      220,527        6.32        216,608        5.99  
Valuation Allowance Release
      —      0.00        —        0.00  
Tax Compensation Differences
      26,330        0.75        260,845        7.21  
Permanent Disallowances
      76,775        2.20        149,141        4.12  
Impact of Tax Reform
      —        0.00        3,078,094        85.08  
Deferred Repricing
      24,533        0.70        (28,337 )       (0.78 ) 
Other
      19,278        (0.10 )       (3,354 )       (0.09 ) 
Foreign tax credits
      (108,150 )       (3.10 )       (108,314 )       (2.99 ) 
Foreign tax withholding
      108,150        3.10        108,314        2.99  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total income taxes
    $ 1,100,641        30.87      $ 4,472,504        123.63  
  
 
 
     
 
 
     
 
 
     
 
 
  
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, 2019:
 
Jurisdiction
    Open Tax
Years		    Examinations
in Process
United States – Federal Income Tax
   2015 – 2018   N/A
United States – Various States
   2013 – 2018   N/A