Income Taxes

3 Months Ended

Feb. 28, 2013

Income Taxes [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 $29,000,000 that expire in the years 2013 through 2031.  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 approximately $2,714,000 and $4,779,000 in the three-month periods ended February 28, 2013 and February 29, 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.  Consequently, the Company has recorded no income tax expense in either of these three-month periods.