Income Taxes

12 Months Ended

Nov. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 15 – Income Taxes

The Company provides for income taxes using an asset and liability based approach. Deferred income tax assets and liabilities are recorded to reflect the tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The significant components of net deferred tax assets and liabilities were as follows at November 30, 2012 and 2011:

	2012			2011
Operating loss carry forwards	$	9,914,348		$	9,522,775
Stock-based compensation		473,598			481,606
Ideal Bio-Stent related intellectual property		179,858			194,151
Deferred revenue		219,223			238,951
Other		450			450
Valuation allowance		(10,787,477	)		(10,437,933	)
Net Deferred Tax Assets	$	-		$	-

The valuation allowance increased by $349,544 for the year ended November 30, 2012 and increased by $527,662 during the year ended November 30, 2011.

As of November 30, 2012, the Company has U.S. Federal operating loss carryforwards of approximately $24.8 million. The operating losses expire, if not used, from 2018 through 2032. The utilization of the net operating losses is dependent upon the tax laws in effect at the time such losses can be utilized. A significant change of ownership control of the Company could cause the utilization of net operating losses to be limited.

A reconciliation of the expected income tax benefit at the U.S. Federal income tax rate to the income tax benefit actually recognized for the years ended November 30, 2012 and 2011 is set forth below:

	2012			2011
Benefit at federal statutory rate (34%)	$	(461,924	)	$	(663,707	)
State income tax benefit, net of federal tax		(85,608	)		(109,935	)
Change in fair value of derivative liability		(30,145	)		27,565
Expiration of operating loss carry forwards		88,404			212,641
Forfeiture of non-qualified stock options		138,540			-
Other differences		1,189			5,774
Change in valuation allowance		349,544			527,662
Benefit from Income Taxes	$	-		$	-

The Company and its subsidiaries file tax returns in the U.S. Federal jurisdiction and, in the states of California and Rhode Island. The Company is no longer subject to U.S. federal tax examinations for tax years before and including November 30, 2009. The Company’s subsidiaries are no longer subject to examination by State tax authorities for tax years before and including November 30, 2007. During the years ended November 30, 2012 and 2011, the Company did not recognize interest and penalties.