Note 11 - Income Taxes

12 Months Ended

Nov. 30, 2014

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(11)    

Income Taxes

Total income tax expense (benefit) for the years ended November 30, 2014 and 2013 consists of the following:

	November 30
	2014		2013
Current Expense	$	307,452	$	765,606
Deferred expense (benefit)		59,806		(111,138	)
	$	367,258	$	654,468

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

	November 30
	2014			2013
Statutory federal income tax rate		34.0	%		34.0	%
R&D tax credits		(2.0	)		(1.0	)
Permanent Differences and Other		(3.8	)		(3.3	)
		28.2	%		29.7	%

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2014 and 2013 are presented below:

	November 30
	2014			2013
Current deferred tax assets (liabilities):
Accrued expenses	$	147,000		$	168,000
Inventory capitalization		22,000			24,000
Asset reserves		1,091,000			1,036,000
Total current deferred tax assets	$	1,260,000		$	1,228,000
Non-current deferred tax assets
Property, plant, and equipment	$	(1,142,000	)	$	(953,000	)
Total non-current deferred tax assets (liabilities)	$	(1,142,000	)	$	(953,000	)

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.