Note 15 - Income Taxes

12 Months Ended

Nov. 30, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(15) Income Taxes

Total income tax expense for the 2023 and 2022 fiscal years consists of the following:

	November 30, 2023			November 30, 2022
Current expense	$	11,284		$	2,712
Deferred expense		102,182			16,491
Total income tax expense		113,466			19,203
Income tax benefit - discontinued operations		(212,493	)		(47,620	)
Income tax expense - continuing operations	$	325,959		$	66,823

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

	November 30, 2023			November 30, 2022
Statutory federal income tax rate		21.0	%		21.0	%
State taxes (net of federal)		4.9			-
Permanent Differences and Other		3.9			(4.6	)
		29.8	%		16.4	%

The primary driver for the increase in effective tax rate was due to add backs related to differences in restricted stock values at grant and vest date and non-deductible meals expense.

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) on November 30, 2023 and 2022 are presented as approximate amounts below:

	November 30
	2023			2022
Deferred tax assets
Accrued expenses	$	106,356		$	93,022
Inventory capitalization		155,705			167,671
NOL and tax credit carryforward		1,773,588			1,920,818
Asset reserves		539,848			521,114
Total deferred tax assets	$	2,575,497		$	2,702,625
Deferred tax liabilities
Property, plant, and equipment	$	(72,284	)	$	(97,230	)
Total deferred tax liabilities	$	(72,284	)	$	(97,230	)
Net deferred tax assets (liabilities)	$	2,503,213		$	2,605,395

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. The Company has net operating losses amounting to approximately $4,496,000 and tax credit carryforward amounting to approximately $109,000 for its U.S. operations that will expire on November 30, 2036, 2037, 2038, 2039 and 2040. The Company has another $4,995,000 of net operating losses that can be carried forward indefinitely. Management believes that the Company will be able to utilize the U.S. net operating losses and credits before their expiration.