Note 13 - Income Taxes

12 Months Ended

Nov. 30, 2012

Income Tax Disclosure [Text Block]

(13)         Income Taxes

Total income tax expense (benefit) for the years ended November 30, 2012 and 2011 consists of the following:

	November 30
		2012			2011
Current expense		$	1,364,661			$	201,632
Deferred expense (credit)			(41,721	)			130,407
		$	1,322,940			$	332,039

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

	November 30
	2012		2011
Statutory federal income tax rate		34.0%		34.0%
R & D tax credits		(2.0)		(4.8)
PriorYear adjustments		(1.0)		(6.2)
Other		2.2		(2.0)
		33.2%		21.0%	%

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2012 and 2011 are presented below:

	November 30
	2012			2011
Current deferred tax assets (liabilities):
Accrued expenses	$	254,000		$	55,000
Inventory capitalization		8,000			52,000
Asset reserves		800,000			826,000
Total current deferred tax assets	$	1,062,000		$	933,000
Non-current deferred tax assets (liabilities):
Property, plant, and equipment	$	(897,000	)	$	(811,000	)
Total non-current deferred tax assets (liabilities)	$	(897,000	)	$	(811,000	)

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.