Note 11 - Income Taxes

12 Months Ended

Nov. 30, 2011

Income Tax Disclosure [Text Block]

 (11)        Income Taxes

Total income tax expense (benefit) for the years ended November 30, 2011 and 2010 consists of the following:

		November 30
		2011			2010
Current expense	$	395,124		$	488,426
Deferred expense (credit)		(63,085	)		16,000
	$	332,039		$	504,426

The reconciliation of the statutory Federal income tax rate are as follows:

	November 30
	2011			2010
Statutory federal income tax rate		34.0	%		34.0	%
R& D Tax Credits		(4.8	)
Prior  Year Adjustments		(6.2	)
Other		(2.0	)		(1.6	)
		21.0	%		32.4	%

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2011 and 2010 are presented below:

	November 30
	2011			2010
Current deferred tax assets (liabilities):
Accrued expenses	$	55,000		$	107,000
Inventory capitalization		52,000			52,000
Asset reserves		826,000			662,000
Total current deferred tax assets	$	933,000		$	821,000
Non-current deferred tax  assets (liabilities):
Property, plant, and equipment	$	(811,000	)	$	(568,000	)
Total non-current deferred tax assets (liabilities)	$	(811,000	)	$	(568,000	)

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.