| Summary of Income Tax Provision (Benefit) |
The Company recorded the following income tax provision for the years ended November 30, 2023 and 2022.
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
1,862,000 |
|
|
$ |
1,714,000 |
|
State |
|
|
1,046,000 |
|
|
|
566,000 |
|
Subtotal |
|
|
2,908,000 |
|
|
|
2,280,000 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(4,945,000 |
) |
|
|
(1,218,000 |
) |
State |
|
|
(1,806,000 |
) |
|
|
(514,000 |
) |
Subtotal |
|
|
(6,751,000 |
) |
|
|
(1,732,000 |
) |
Income tax (benefit) expense |
|
$ |
(3,843,000 |
) |
|
$ |
548,000 |
|
|
| Summary of Deferred Tax Assets and Liabilities |
As of November 30, 2023 and 2022, the tax effects of temporary differences that give rise to the deferred tax assets are as follows:
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
Tax assets: |
|
|
|
|
|
|
Deferred income (net of discounts) |
|
$ |
11,945,000 |
|
|
$ |
10,081,000 |
|
Tax over book basis in unconsolidated affiliate |
|
|
1,268,000 |
|
|
|
1,252,000 |
|
Accrued payroll |
|
|
465,000 |
|
|
|
335,000 |
|
Reserves and other accruals |
|
|
3,585,000 |
|
|
|
2,524,000 |
|
Stock compensation |
|
|
578,000 |
|
|
|
475,000 |
|
Depreciation and amortization |
|
|
3,938,000 |
|
|
|
213,000 |
|
Transaction costs |
|
|
20,000 |
|
|
|
20,000 |
|
RSA buy-out |
|
|
1,097,000 |
|
|
|
1,236,000 |
|
Lease liability |
|
|
305,000 |
|
|
|
171,000 |
|
Unrealized loss on securities |
|
|
105,000 |
|
|
|
69,000 |
|
Section 174 costs |
|
|
268,000 |
|
|
|
— |
|
Total Assets: |
|
|
23,574,000 |
|
|
|
16,376,000 |
|
Tax Liabilities: |
|
|
|
|
|
|
Other |
|
|
(1,273,000 |
) |
|
|
(955,000 |
) |
Right-of-use asset |
|
|
(292,000 |
) |
|
|
(169,000 |
) |
Total liabilities |
|
|
(1,565,000 |
) |
|
|
(1,124,000 |
) |
Less: valuation allowance |
|
|
(1,516,000 |
) |
|
|
(1,510,000 |
) |
Net deferred tax asset |
|
$ |
20,493,000 |
|
|
$ |
13,742,000 |
|
|
| 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 |
|
|
|
2023 |
|
|
% |
|
|
2022 |
|
|
% |
|
Tax at federal statutory rate |
|
|
(2,806,544 |
) |
|
|
21.00 |
|
|
|
696,979 |
|
|
|
21.00 |
|
State income tax effect |
|
|
(924,411 |
) |
|
|
6.92 |
|
|
|
50,556 |
|
|
|
1.52 |
|
Change in valuation allowance |
|
|
5,869 |
|
|
|
(0.04 |
) |
|
|
(8,865 |
) |
|
|
(0.27 |
) |
Tax compensation differences |
|
|
94,115 |
|
|
|
(0.70 |
) |
|
|
15,313 |
|
|
|
0.46 |
|
Permanent disallowances |
|
|
50,322 |
|
|
|
(0.38 |
) |
|
|
8,266 |
|
|
|
0.25 |
|
Deferred repricing |
|
|
(98,419 |
) |
|
|
0.74 |
|
|
|
(126,306 |
) |
|
|
(3.81 |
) |
Other |
|
|
41,220 |
|
|
|
(0.32 |
) |
|
|
(8,376 |
) |
|
|
(0.24 |
) |
Uncertain tax position |
|
|
(204,978 |
) |
|
|
1.53 |
|
|
|
(80,027 |
) |
|
|
(2.41 |
) |
Total income taxes |
|
$ |
(3,842,826 |
) |
|
|
28.75 |
|
|
$ |
547,540 |
|
|
|
16.50 |
|
|