v3.26.1
Income Taxes
 3 Months Ended
Feb. 28, 2026
Income Taxes [Abstract]  
INCOME TAXES

NOTE H – INCOME TAXES

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the enacted tax rates in effect in the years in which the differences are expected to reverse.

 

The Company’s deferred income taxes are comprised of the following:

 

   February 28,   November 30, 
   2026   2025 
Deferred Tax Assets        
Depreciation $36,107  $35,837 
Allowance for bad debts  27,264   27,264 
Inventory  68,696   68,696 
Facilities rental  40,651   40,876 
Other Accrued Accounts  130,983   56,539 
           
Total deferred tax assets  303,701   229,212 
Valuation allowance  -   - 
Deferred Tax Assets $303,701  $229,212 

 

A valuation allowance for the deferred tax assets relates principally to the uncertainty of the utilization of deferred tax assets and was calculated in accordance with the provisions of ASC 740, which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized.

 

The Company’s income tax expense consists of the following:

 

   Three Months Ended 
   February 28,
2026		   February 28,
2025		 
Current:        
Federal $25,328  $66,822 
States  29,893   17,763 
   55,221   84,585 
           
Deferred:          
Federal  (53,622)  (15,420)
States  (20,857)  (4,099)
   (74,489)  (19,519)
Provision for income taxes $(19,268) $65,066 

 

The Company files a consolidated income tax return with its wholly-owned subsidiaries. A reconciliation of the difference between the expected income tax rate using the statutory federal tax rate and the Company’s effective rate is as follows:

 

   Three Months Ended 
   February 28,   February 28, 
   2026   2025 
U.S Federal Income tax statutory rate  (21)%  21%
State income taxes  (5)%  5%
Other-primarily state franchise taxes   (10)%   27%
Effective tax rate  (36)%  53%

 

State franchise taxes include taxes not based on income and taxes based on income for entities filing separate income tax returns for state filing purposes. The effect of foreign income taxes has not been presented as the amount is not material.