Note 13 - Income Taxes

12 Months Ended

Nov. 30, 2015

(13)	Income Taxes

Total income tax expense (benefit) for the years ended November 30, 2015 and 2014 consists of the following:

	November 30, 2015			November 30, 2014
Current Expense (benefit)	$	(126,301	)	$	307,452
Deferred expense (benefit)		(180,919	)		59,806
	$	(307,220	)	$	367,258

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

	November 30, 2015			November 30, 2014
Statutory federal income tax rate		34.0	%		34.0	%
R&D tax credits		-			(2.0	)
Permanent Differences and Other		1.5			(3.8	)
		35.5	%		28.2	%

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2015 and 2014 are presented below:

	November 30
	2015			2014
Current deferred tax assets (liabilities):
Accrued expenses	$	126,000		$	147,000
Inventory capitalization		21,000			22,000
Asset reserves		999,000			1,091,000
Total current deferred tax assets	$	1,146,000		$	1,260,000
Non-current deferrred tax assets
Property, plant, and equipment	$	(847,000	)	$	(1,142,000	)
Total non-current deferred tax assets (liabilities)	$	(847,000	)	$	(1,142,000	)

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.