| Summary of Income Tax Provision (Benefit) |
The Company recorded the following income tax provision for the years ended November 30, 2022 and 2021.
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
1,714,000 |
|
|
$ |
1,468,000 |
|
State |
|
|
566,000 |
|
|
|
740,000 |
|
Foreign |
|
|
— |
|
|
|
(34,000 |
) |
Subtotal |
|
|
2,280,000 |
|
|
|
2,174,000 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(1,218,000 |
) |
|
|
(1,024,000 |
) |
State |
|
|
(514,000 |
) |
|
|
(622,000 |
) |
Foreign |
|
|
— |
|
|
|
— |
|
Subtotal |
|
|
(1,732,000 |
) |
|
|
(1,646,000 |
) |
Income tax expense |
|
$ |
548,000 |
|
|
$ |
528,000 |
|
|
| Summary of Deferred Tax Assets and Liabilities |
As of November 30, 2022 and 2021, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
Tax assets: |
|
|
|
|
|
|
Deferred income (net of discounts) |
|
$ |
10,081,000 |
|
|
$ |
8,507,000 |
|
Tax over book basis in unconsolidated affiliate |
|
|
1,252,000 |
|
|
|
1,246,000 |
|
Accrued payroll |
|
|
335,000 |
|
|
|
109,000 |
|
Reserves and other accruals |
|
|
2,524,000 |
|
|
|
2,341,000 |
|
Stock compensation |
|
|
475,000 |
|
|
|
414,000 |
|
Depreciation and amortization |
|
|
213,000 |
|
|
|
499,000 |
|
Transaction costs |
|
|
20,000 |
|
|
|
19,000 |
|
RSA buy-out |
|
|
1,236,000 |
|
|
|
1,374,000 |
|
Lease liability |
|
|
171,000 |
|
|
|
174,000 |
|
Unrealized loss on securities |
|
|
69,000 |
|
|
|
68,000 |
|
Total Assets: |
|
|
16,376,000 |
|
|
|
14,751,000 |
|
Tax Liabilities: |
|
|
|
|
|
|
NOLs, credits, and other carryforward items |
|
|
(955,000 |
) |
|
|
(1,050,000 |
) |
Right-of-use asset |
|
|
(169,000 |
) |
|
|
(172,000 |
) |
Total liabilities |
|
|
(1,124,000 |
) |
|
|
(1,222,000 |
) |
Less: valuation allowance |
|
|
(1,510,000 |
) |
|
|
(1,519,000 |
) |
Net deferred tax asset |
|
$ |
13,742,000 |
|
|
$ |
12,010,000 |
|
|
| 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 |
|
|
|
2022 |
|
|
% |
|
|
2021 |
|
|
% |
|
Tax at federal statutory rate |
|
|
696,979 |
|
|
|
21.00 |
|
|
|
548,358 |
|
|
|
21.00 |
|
State income tax effect |
|
|
50,556 |
|
|
|
1.52 |
|
|
|
175,654 |
|
|
|
6.73 |
|
Change in valuation allowance |
|
|
(8,865 |
) |
|
|
(0.27 |
) |
|
|
20,262 |
|
|
|
0.77 |
|
Tax compensation differences |
|
|
15,313 |
|
|
|
0.46 |
|
|
|
212,217 |
|
|
|
8.13 |
|
Permanent disallowances |
|
|
8,266 |
|
|
|
0.25 |
|
|
|
34,356 |
|
|
|
1.31 |
|
Deferred repricing |
|
|
(126,306 |
) |
|
|
(3.81 |
) |
|
|
(334,874 |
) |
|
|
(12.82 |
) |
Other |
|
|
(8,376 |
) |
|
|
(0.24 |
) |
|
|
(93,976 |
) |
|
|
(3.60 |
) |
Foreign tax credits |
|
|
(80,027 |
) |
|
|
(2.41 |
) |
|
|
— |
|
|
|
— |
|
Foreign tax withholding |
|
|
— |
|
|
|
— |
|
|
|
(34,287 |
) |
|
|
(1.31 |
) |
Total income taxes |
|
$ |
547,540 |
|
|
|
16.50 |
|
|
$ |
527,710 |
|
|
|
20.21 |
|
|