Note 12 - Income Taxes

12 Months Ended

Nov. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

(12)         Income Taxes

Total income tax expense (benefit) for the years ended November 30, 2013 and 2012 consists of the following:

	November 30
	2013			2012
Current expense	$	765,606		$	1,364,661
Deferred expense(benefit)		(111,138	)		(41,721	)
	$	654,468		$	1,322,940

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

	November 30
	2013			2012
Statutory federal income tax rate		34.0	%		34.0%
R & D tax credits		(1.0	)		(2.0	)
Permanent Differences and Other		(3.3	)		1.2
		29.7	%		33.2	%

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2013 and 2012 are presented below:

	November 30
	2013			2012
Current deferred tax assets (liabilities):
Accrued expenses	$	168,000		$	254,000
Inventory capitalization		24,000			8,000
Asset reserves		1,036,000			800,000
Total current deferred tax assets	$	1,228,000		$	1,062,000
Non-current deferred tax assets (liabilities):
Property, plant, and equipment	$	(953,000	)	$	(897,000	)
Total non-current deferred tax assets (liabilities)	$	(953,000	)	$	(897,000	)

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.