INCOME TAXES

12 Months Ended

Nov. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 14 – INCOME TAXES

The Company identified its federal and California state tax returns as its “major” tax jurisdictions. The periods the Company’s income tax returns are subject to examination for these jurisdictions are calendar year 2018 through 2023. The Company believe its income tax filing positions and deductions will be sustained on audit, and the Company does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no liabilities for uncertain tax positions have been recorded.

At November 30, 2023, the Company had available net operating loss carry-forwards for federal income tax reporting purposes of $12,933,849 which are available to offset future taxable income. As a result of the Tax Cuts Job Act 2017, certain of these carry-forwards do not expire. The Company has not performed a formal analysis, but it believes its ability to use such net operating losses and tax credit carry-forwards is subject to annual limitations due to change of control provisions under Sections 382 and 383 of the Internal Revenue Code, which significantly impacts its ability to realize these deferred tax assets.

The Company’s net deferred tax assets, liabilities and valuation allowance as of November 30, 2023 and 2022 are summarized as follows:

	Year Ended November 30,
	2023			2022
Deferred tax assets:
Net operating loss carryforwards	$	3,260,600		$	2,692,900
Total deferred tax assets		3,260,600			2,692,900
Valuation allowance		(3,260,600	)		(2,692,900	)
Net deferred tax assets	$	-		$	-

The Company records a valuation allowance in the full amount of its net deferred tax assets since realization of such tax benefits has been determined by management to be less likely than not. The valuation allowance increased $567,700 during the year ended November 30, 2023. The valuation allowance decreased $2,266,900 during the year ended November 30, 2022.

A reconciliation of the statutory federal income tax benefit to actual tax benefit for the years ended November 30, 2023 and 2022, is as follows:

	2023			2022
Federal statutory blended income tax rates		(21	)%		(21	)%
State statutory income tax rate, net of federal benefit		(7	)		(7	)
Change in valuation allowance		21			8
Other		7			20
Effective tax rate		-	%		-	%

To date, the Company has not filed its 2023 federal and state corporate income tax returns. The Company expects to make these filings as soon as practicable.