Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Nov. 30, 2021
Income Tax Disclosure [Abstract]  
Summary of Income Tax Provision (Benefit)

The Company recorded the following income tax provision for the years ended November 30, 2021 and 2020.

 

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

Federal

 

$

1,468,000

 

 

$

1,757,000

 

State

 

 

740,000

 

 

 

598,000

 

Foreign

 

 

(34,000

)

 

 

68,000

 

     Subtotal

 

 

2,174,000

 

 

 

2,423,000

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

Federal

 

 

(1,024,000

)

 

 

(847,000

)

State

 

 

(622,000

)

 

 

(161,000

)

Foreign

 

 

 

 

 

 

     Subtotal

 

 

(1,646,000

)

 

 

(1,008,000

)

Income tax expense

 

$

528,000

 

 

$

1,415,000

 

Summary of Deferred Tax Assets and Liabilities

As of November 30, 2021 and 2020, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:

 

 

 

2021

 

 

2020

 

Tax assets:

 

 

 

 

 

 

Deferred income (net of discounts)

 

$

8,507,000

 

 

$

7,024,000

 

Tax over book basis in unconsolidated affiliate

 

 

1,246,000

 

 

 

1,209,000

 

Accrued payroll

 

 

109,000

 

 

 

100,000

 

Reserves and other accruals

 

 

2,341,000

 

 

 

1,895,000

 

Stock compensation

 

 

414,000

 

 

 

567,000

 

Depreciation and amortization

 

 

499,000

 

 

 

483,000

 

Transaction costs

 

 

19,000

 

 

 

19,000

 

RSA buy-out

 

 

1,374,000

 

 

 

1,482,000

 

Lease liability

 

 

174,000

 

 

 

81,000

 

Unrealized loss on securities

 

 

68,000

 

 

 

 

Total assets

 

 

14,751,000

 

 

 

12,860,000

 

 

 

 

 

 

 

 

Tax liabilities:

 

 

 

 

 

 

Unrealized gains on securities

 

 

 

 

 

(134,000

)

NOLs, credits, and other carryforward items

 

 

(1,050,000

)

 

 

(782,000

)

Right-of-use asset

 

 

(172,000

)

 

 

(81,000

)

Total liabilities

 

 

(1,222,000

)

 

 

(997,000

)

Less: valuation allowance

 

 

(1,519,000

)

 

 

(1,499,000

)

Net deferred tax asset

 

$

12,010,000

 

 

$

10,364,000

 

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

 

 

 

2021

 

 

%

 

 

2020

 

 

%

 

Tax at federal statutory rate

 

 

548,358

 

 

 

21.00

 

 

 

1,061,885

 

 

 

21.00

 

State income tax effect

 

 

175,654

 

 

 

6.73

 

 

 

282,514

 

 

 

5.59

 

Change in valuation allowance

 

 

20,262

 

 

 

0.77

 

 

 

(147,528

)

 

 

(2.92

)

Tax compensation differences

 

 

212,217

 

 

 

8.13

 

 

 

6,870

 

 

 

0.14

 

Permanent disallowances

 

 

34,356

 

 

 

1.31

 

 

 

55,372

 

 

 

1.10

 

Deferred repricing

 

 

(334,874

)

 

 

(12.82

)

 

 

80,692

 

 

 

1.60

 

Other

 

 

(93,976

)

 

 

(3.60

)

 

 

74,922

 

 

 

1.47

 

Foreign tax credits

 

 

 

 

 

 

 

 

(68,102

)

 

 

(1.35

)

Foreign tax withholding

 

 

(34,287

)

 

 

(1.31

)

 

 

68,102

 

 

 

1.35

 

Total income taxes

 

$

527,710

 

 

 

20.21

 

 

$

1,414,727

 

 

 

27.98

 

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, 2021:

 

Jurisdiction

 

Open Tax Years

 

Examinations in Process

United States – Federal Income Tax

 

2018 – 2020

 

N/A

United States – Various States

 

2017 - 2020

 

N/A