XML 42 R16.htm IDEA: XBRL DOCUMENT

Income Taxes	9 Months Ended
Aug. 31, 2013
Income Tax Disclosure [Abstract]
Income Taxes	Note 10 – Income Taxes At November 30, 2012, the Company had net operating loss carryforwards for federal income tax purposes of approximately $30,800,000 that expire in the years 2013 through 2032. The Company has provided an allowance for the full value of the related deferred tax asset since it is more likely than not that none of such benefit will be realized. Utilization of the net operating losses may be subject to annual limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Under Section 108(a) of the Internal Revenue Code, the gain of $2,714,461 and $6,338,601 in the nine-month periods ended August 31, 2013 and 2012, respectively, that is attributable to debt forgiveness is not included in taxable income to the Company, as the Company is deemed insolvent for tax purposes. No such gain was recorded in the three-month periods ended August 31, 2013 and 2012. Consequently, the Company has recorded no income tax expense in either of the nine-month or three-month periods ended August 31, 2013 and 2012.

Income Taxes

9 Months Ended

Aug. 31, 2013

Note 10 – Income Taxes

At November 30, 2012, the Company had net operating loss carryforwards for federal income tax purposes of approximately $30,800,000 that expire in the years 2013 through 2032. The Company has provided an allowance for the full value of the related deferred tax asset since it is more likely than not that none of such benefit will be realized. Utilization of the net operating losses may be subject to annual limitations provided by Section 382 of the Internal Revenue Code and similar state provisions.

Under Section 108(a) of the Internal Revenue Code, the gain of $2,714,461 and $6,338,601 in the nine-month periods ended August 31, 2013 and 2012, respectively, that is attributable to debt forgiveness is not included in taxable income to the Company, as the Company is deemed insolvent for tax purposes. No such gain was recorded in the three-month periods ended August 31, 2013 and 2012. Consequently, the Company has recorded no income tax expense in either of the nine-month or three-month periods ended August 31, 2013 and 2012.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details