Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Aug. 31, 2020 | Oct. 09, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | SURGE COMPONENTS INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --11-30 | |
Entity Common Stock, Shares Outstanding | 5,437,526 | |
Amendment Flag | false | |
Entity Central Index Key | 0000747540 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Aug. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 000-27688 | |
Entity Incorporation, State or Country Code | NY | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Current assets: | ||
Cash | $ 3,809,315 | $ 2,739,305 |
Accounts receivable - net of allowance for doubtful accounts of $142,934 and $132,221 | 5,930,075 | 5,129,792 |
Inventory, net | 3,726,531 | 3,593,231 |
Prepaid expenses and income taxes | 474,694 | 486,940 |
Total current assets | 13,940,615 | 11,949,268 |
Fixed assets – net of accumulated depreciation and amortization of $2,334,151 and $2,305,724 | 111,711 | 120,752 |
Operating Lease Right of Use Asset | 1,702,391 | |
Deferred income taxes | 1,005,433 | 1,185,740 |
Other assets | 22,607 | 22,607 |
Total assets | 16,782,757 | 13,278,367 |
Current liabilities: | ||
Accounts payable | 3,915,861 | 3,344,182 |
Operating lease liabilities, current maturities | 181,325 | |
Financing lease payable, current maturities | 8,345 | 7,782 |
Accrued expenses and taxes | 557,014 | 581,201 |
Accrued salaries | 535,812 | 506,663 |
Total current liabilities | 5,198,357 | 4,439,828 |
Operating lease liabilities net of current maturities | 1,535,292 | |
Financing lease payable, net of current maturities | 10,771 | 17,102 |
Note payable to bank | 449,700 | |
Deferred rent | 12,998 | |
Total liabilities | 7,194,120 | 4,469,928 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock - $.001 par value, 5,000,000 shares authorized: | ||
Common stock - $.001 par value, 50,000,000 shares authorized, 5,437,526 and 5,320,026 shares issued and outstanding | 5,437 | 5,319 |
Additional paid-in capital | 16,948,532 | 16,666,465 |
Accumulated deficit | (7,365,342) | (7,863,355) |
Total shareholders’ equity | 9,588,637 | 8,808,439 |
Total liabilities and shareholders’ equity | 16,782,757 | 13,278,367 |
Series C Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock - $.001 par value, 5,000,000 shares authorized: | 10 | 10 |
Total shareholders’ equity | 10 | 10 |
Series D Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock - $.001 par value, 5,000,000 shares authorized: |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Allowance for doubtful accounts of accounts receivable (in Dollars) | $ 142,934 | $ 132,221 |
Accumulated depreciation and amortization on fixed assets (in Dollars) | $ 2,334,151 | $ 2,305,724 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 5,437,526 | 5,320,026 |
Common stock, shares outstanding | 5,437,526 | 5,320,026 |
Series C Preferred Stock | ||
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 10,000 | 10,000 |
Preferred stock, shares outstanding | 10,000 | 10,000 |
Preferred stock, liquidation preference per share (in Dollars per share) | $ 5 | $ 5 |
Series D Preferred Stock | ||
Preferred stock, shares authorized | 75,000 | 75,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 8,667,255 | $ 8,085,849 | $ 22,103,444 | $ 24,957,943 |
Cost of goods sold | 6,405,274 | 5,670,293 | 15,913,093 | 17,749,039 |
Gross profit | 2,261,981 | 2,415,556 | 6,190,351 | 7,208,904 |
Operating expenses: | ||||
Selling and shipping expenses | 583,984 | 717,399 | 1,814,955 | 2,011,634 |
General and administrative expenses | 1,137,220 | 1,087,154 | 3,652,093 | 3,458,541 |
Depreciation and amortization | 9,523 | 9,626 | 28,428 | 28,878 |
Total operating expenses | 1,730,727 | 1,814,179 | 5,495,476 | 5,499,053 |
Income before other income (expense) and income taxes | 531,254 | 601,377 | 694,875 | 1,709,851 |
Other income (expense): | ||||
Other income | 562 | 242 | 21,540 | 245 |
Interest expense | (477) | (652) | (1,566) | (2,079) |
Other income (expense) | 85 | (410) | 19,974 | (1,834) |
Income before income taxes | 531,339 | 600,967 | 714,849 | 1,708,017 |
Income taxes (benefit) | (157,526) | (78,304) | 211,836 | (126,683) |
Net income | 688,865 | 679,271 | 503,013 | 1,834,700 |
Dividends on preferred stock | 2,500 | 2,500 | 5,000 | 5,000 |
Net income available to common shareholders | $ 686,365 | $ 676,771 | $ 498,013 | $ 1,829,700 |
Net income per share available to common shareholders: | ||||
Basic (in Dollars per share) | $ 0.13 | $ 0.13 | $ 0.09 | $ 0.35 |
Diluted (in Dollars per share) | $ 0.12 | $ 0.12 | $ 0.09 | $ 0.33 |
Weighted Shares Outstanding: | ||||
Basic (in Shares) | 5,405,733 | 5,309,335 | 5,355,281 | 5,280,735 |
Diluted (in Shares) | 5,563,400 | 5,492,527 | 5,512,948 | 5,463,928 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Series C Preferred | Common | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at beginning at Nov. 30, 2018 | $ 10 | $ 5,262 | $ 16,577,772 | $ (9,893,210) | $ 6,689,834 |
Balance at beginning (in Shares) at Nov. 30, 2018 | 10,000 | 5,262,128 | |||
Preferred stock dividends | (5,000) | (5,000) | |||
Issuance of shares as compensation | $ 46 | 88,704 | 88,750 | ||
Issuance of shares as compensation (in Shares) | 47,207 | ||||
Net Income | 1,834,700 | 1,834,700 | |||
Balance at ending at Aug. 31, 2019 | $ 10 | $ 5,308 | 16,666,465 | (8,063,510) | 8,608,284 |
Balance at ending (in Shares) at Aug. 31, 2019 | 10,000 | 5,309,335 | |||
Balance at beginning at Nov. 30, 2019 | $ 10 | $ 5,319 | 16,666,465 | (7,863,355) | 8,808,439 |
Balance at beginning (in Shares) at Nov. 30, 2019 | 10,000 | 5,320,026 | |||
Preferred stock dividends | (5,000) | (5,000) | |||
Issuance of shares as compensation | $ 43 | 216,892 | 216,935 | ||
Issuance of shares as compensation (in Shares) | 42,500 | ||||
Stock option exercise | $ 75 | 65,175 | 65,250 | ||
Stock option exercise (in Shares) | 75,000 | ||||
Net Income | 503,013 | 503,013 | |||
Balance at ending at Aug. 31, 2020 | $ 10 | $ 5,437 | $ 16,948,532 | $ (7,365,342) | $ 9,588,637 |
Balance at ending (in Shares) at Aug. 31, 2020 | 10,000 | 5,437,526 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 503,013 | $ 1,834,700 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,428 | 28,878 |
Deferred income taxes | 180,307 | (159,842) |
Allowance for doubtful accounts | 10,713 | 33,190 |
Stock Compensation | 216,935 | 88,750 |
CHANGES IN OPERATING ASSETS AND LIABILITIES: | ||
Accounts receivable | (810,996) | 415,358 |
Inventory | (133,300) | (374,137) |
Prepaid expenses and income taxes | 12,246 | (292,140) |
Other assets | 1,228 | (9,224) |
Accounts payable | 571,679 | (826,209) |
Deferred rent | (8,961) | |
Accrued expenses | (38) | (132,292) |
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | 580,215 | 598,071 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of fixed assets | (19,387) | (7,221) |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (19,387) | (7,221) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 65,250 | |
Proceeds from notes payable to bank | 449,700 | |
Repayment of financing lease obligations | (5,768) | (5,817) |
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES | 509,182 | (5,817) |
NET CHANGE IN CASH | 1,070,010 | 585,033 |
CASH AT BEGINNING OF PERIOD | 2,739,305 | 1,761,863 |
CASH AT END OF PERIOD | 3,809,315 | 2,346,896 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Income taxes paid | 125,478 | 97,389 |
Interest paid | 1,566 | 2,079 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Accrued dividends on preferred stock | $ 5,000 | $ 5,000 |
Organization, Description of Co
Organization, Description of Company’s Business and Basis of Presentation | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION, DESCRIPTION OF COMPANY’S BUSINESS AND BASIS OF PRESENTATION | NOTE A – ORGANIZATION, DESCRIPTION OF COMPANY’S BUSINESS AND BASIS OF PRESENTATION Surge Components, Inc. (“Surge”) was incorporated in the State of New York and commenced operations on November 24, 1981 as an importer of electronic products, primarily capacitors and discrete semi-conductors selling to customers located principally throughout North America. On June 24, 1988, Surge formed Challenge/Surge Inc. (“Challenge”), a wholly-owned subsidiary to engage in the sale of electronic component products and sounding devices from established brand manufacturers to customers located principally throughout North America. In May 2002, Surge and an officer of Surge founded and became sole owners of Surge Components, Limited (“Surge Limited”), a Hong Kong corporation. Under current Hong Kong law, Surge Limited is required to have at least two shareholders. Surge owns 999 shares of the outstanding common stock and the officer of Surge owns 1 share of the outstanding common stock. The officer of Surge has assigned his rights regarding his 1 share to Surge. Surge Limited started doing business in July 2002. Surge Limited operations have been consolidated with the Company. Surge Limited is responsible for the sale of Surge’s products to customers located in Asia. On August 31, 2010, the Company changed its corporate domicile by merging into a newly-formed corporation, Surge Components, Inc. (Nevada), which was formed in the State of Nevada for that purpose. Surge Components Inc. is the surviving entity. In February 2019, the Company converted into a Delaware corporation. The number of authorized shares of common stock was decreased to 50,000,000 shares. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (1) Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Surge, Challenge, and Surge Limited (collectively the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and disclosures required by U.S. GAAP for complete consolidated financial statements have been condensed or omitted herein. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended November 30, 2019 filed with the SEC on February 28, 2020. The unaudited interim condensed consolidated financial information presented herein reflects all normal adjustments that are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The Company is responsible for the unaudited interim consolidated financial statements included in this report. The results of operations of any interim period are not necessarily indicative of the results for the full year. (2) Accounts Receivable: Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the payment terms. The Company reviews its exposure to amounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base, bad debts to date have not been material. (3) Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU replaces nearly all existing U.S. generally accepted accounting principles guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment by the Company. The Company adopted the standard using the modified retrospective approach in its fiscal year beginning December 1, 2017. The preponderance of the Company’s contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment. Revenue is recognized for products sold by the Company when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, collectability is reasonably assured and title and risk of loss have been transferred to the customer. This occurs when product is shipped from the Company’s warehouse. For direct shipments, revenue is recognized when product is shipped from the Company’s supplier. The Company has a long term supply agreement with one of our suppliers. The Company purchases the merchandise from the supplier and has the supplier directly ship to the customer through a freight forwarder. Title passes to customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $1,330,000 and $2,402,000 for the nine months ended August 31, 2020 and August 31, 2019 respectively. The Company also acts as a sales agent to certain customers in North America for one of its suppliers. The Company reports these commissions as revenues in the period earned. Commission revenue totaled $280,274 and $462,111 for the nine months ended August 31, 2020 and August 31, 2019 respectively. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company and its subsidiaries currently have agreements with several distributors. There are no provisions for the granting of price concessions in any of the agreements. Revenues under these distribution agreements were approximately $4,729,000 and $4,961,000 for the nine months ended August 31, 2020 and August 31, 2019 respectively. (4) Inventories Inventories, which consist solely of products held for resale, are stated at the lower of cost (first-in, first-out method) or net realizable value. Products are included in inventory when the Company obtains title and risk of loss on the products, primarily when shipped from the supplier. Inventory in transit principally from foreign suppliers at August 31, 2020 was $540,853. The Company, at August 31, 2020 has a reserve against slow moving and obsolete inventory of $250,565. From time to time the Company’s products are subject to legislation from various authorities on environmental matters. (5) Depreciation and Amortization Fixed assets are recorded at cost. Depreciation is generally calculated on a straight line method and amortization of leasehold improvements is provided for on the straight-line method over the estimated useful lives of the various assets as follows: Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter Maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. (6) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company believes that concentration with regards to accounts receivable is limited due to its customer base. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At August 31, 2020 and November 30, 2019, the Company’s uninsured cash balances totaled $3,244,820 and $2,174,808, respectively. (7) Income Taxes The Company’s deferred income taxes arise primarily from the differences in the recording of net operating losses, allowances for bad debts, inventory reserves, accrued payroll and depreciation expense for financial reporting and income tax purposes. A valuation allowance is provided when it has been determined to be more likely than not that the likelihood of the realization of deferred tax assets will not be realized. See Note I. The Company follows the provisions of the Accounting Standards Codification topic, ASC 740, “Income Taxes” (ASC 740). There have been no unrecognized tax benefits and, accordingly, there has been no effect on the Company’s financial condition or results of operations as a result of ASC 740. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years before fiscal years ending November 30, 2016, and state tax examinations for years before fiscal years ending November 30, 2015. Management does not believe there will be any material changes in our unrecognized tax positions over the next twelve months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740, there was no accrued interest or penalties associated with any unrecognized benefits, nor was any interest expense recognized during the nine months ended August 31, 2020 and August 31, 2019. (8) Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. (9) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. (10) Marketing and promotional costs: Marketing and promotional costs are expensed as incurred and have not been material to date. The Company has contractual arrangements with several of its distributors which provide for cooperative advertising rights to the distributor as a percentage of sales. Cooperative advertising is reflected as a reduction in revenues and has not been material to date. (11) Fair Value of Financial Instruments The carrying amount of cash balances, accounts receivable, accounts payable and accrued expenses approximate their fair value based on the nature of those items. Estimated fair values of financial instruments are determined using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret the market data used to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative of the amounts that could be realized in a current market exchange. (12) Shipping Costs The Company classifies shipping costs as a component of selling expenses. Shipping costs totaled $2,654 and $4,573 for the nine months ended August 31, 2020 and August 31, 2019 respectively. (13) Earnings Per Share Basic earnings per share includes no dilution and is computed by dividing net (loss) income available to common stockholders by the weighted average number of common shares outstanding for the period. In the period with a profit, the difference between reported basic and diluted weighted-average common shares results from the assumption that all dilutive stock options and convertible preferred stock exercised into common stock. Total potentially dilutive shares excluded from diluted weighted shares outstanding at August 31, 2020 and August 31, 2019 totaled 199,333 and 134,373, respectively. (14) Stock Based Compensation Stock Based Compensation to Employees The Company accounts for its stock-based compensation for employees in accordance with Accounting Standards Codification (“ASC”) 718. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees over the related vesting period. Stock Based Compensation to Other than Employees The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. (15) Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) On December 1, 2019, the Company adopted Topic 842 applying the optional transition method, which allows an entity to apply the new standard at the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of adopting Topic 842, the Company recognized assets and liabilities for the rights and obligations created by operating leases totaling approximately $290,000. The Company determines if a contract contains a lease at inception based on whether it conveys the right to control the use of an identified asset. Substantially all of the Company's leases are classified as operating leases. The Company records operating lease right-of-use assets within “Other assets” and lease liabilities are recorded within “current and noncurrent liabilities” in the consolidated balance sheets. Lease expenses are recorded within “General and administrative expenses” in the consolidated statements of operations. Operating lease payments are presented within “Operating cash flows” in the consolidated statements of cash flows. Operating lease right-of-use assets and lease liabilities are recognized based on the net present value of future minimum lease payments over the lease term starting on the commencement date. The Company generally is not able to determine the rate implicit in its leases and, as such, applies an incremental borrowing rate based on the Company's cost of borrowing for the relevant terms of each lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include an option to extend or terminate a lease if it is reasonably certain that the Company will exercise such options. The Company has elected the practical expedient to not separate lease components from non-lease components, and also has elected not to record a right-of-use asset or lease liability for leases which, at inception, have a term of twelve months or less. Variable lease payments are recognized in the period in which the obligation for those payments is incurred. |
Fixed Assets
Fixed Assets | 9 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE C – FIXED ASSETS Fixed assets consist of the following: August 31, November 30, 2020 2019 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 1,022,556 1,022,556 Computer Equipment 1,095,335 1,075,949 Less-Accumulated Depreciation (2,334,151 ) (2,305,724 ) Net Fixed Assets $ 111,711 $ 120,752 Depreciation and amortization expense for the nine months ended August 31, 2020 and August 31, 2019 was $28,428 and $28,878, respectively. |
Financing Lease Obligations
Financing Lease Obligations | 9 Months Ended |
Aug. 31, 2020 | |
Financing Lease Obligations [Abstract] | |
FINANCING LEASE OBLIGATIONS | NOTE D – FINANCING LEASE OBLIGATIONS The Company is obligated under financing leases for telephone equipment. The Company leases equipment under two capital lease arrangements with NEC Financial Services. Pursuant to the leases, the lessor retains actual title to the leased property until the termination of the lease, at which time the equipment can be purchased for one dollar for each lease. The terms of the leases are 60 months with a combined monthly payment of $815, respectively. The assumed interest rates on the leases are 9.342%. The leases terminate in 2022. Future minimum lease payments under these financing lease obligations as of August 31, 2020 are as follows: 2020 $ 9,779 2021 $ 9,779 2022 $ 1,786 Total $ 21,344 Less: interest portion 2,228 Present value of net minimum lease payments $ 19,116 Less: current portion 8,345 Non-current portion $ 10,771 Financing lease obligations mature as follows: Twelve Months Ended August 31: 2020 $ 8,345 2021 $ 9,158 2022 $ 1,613 Principal payments remaining $ 19,116 |
Loans Payable
Loans Payable | 9 Months Ended |
Aug. 31, 2020 | |
Payables and Accruals [Abstract] | |
LOANS PAYABLE | NOTE E – LOANS PAYABLE In February 2017, the Company obtained a line of credit with a bank for up to $3,000,000 (the “Credit Line”). Borrowings under the Credit Line are due upon demand and accrue interest at the greater of the prime rate or the LIBOR rate plus two percent (and may be increased by three percent in the event the Company fails to (i) repay all amounts due on the Credit Line upon demand or (ii) comply with any terms or conditions relating to the Credit Line). The Credit Line is collateralized by substantially all of the assets of the Company. As of August 31, 2020, the balance on the Credit Line was $0. As of August 31, 2020, the Company was in compliance with the debt covenants under the Credit Line. The Company in May 2020 received loan proceeds in the amount of approximately $449,700 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after twenty-four weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the period. The unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months. The Company intends to use the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loan, we cannot assure you that we will not take actions that could cause the Company to be ineligible for forgiveness of the loan, in whole or in part. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Aug. 31, 2020 | |
Accrued Expenses [Abstract] | |
ACCRUED EXPENSES | NOTE F – ACCRUED EXPENSES Accrued expenses consist of the following: August 31, November 30, 2020 2019 Commissions $ 238,188 $ 233,784 Preferred stock dividends 151,569 146,569 Other accrued expenses 167,257 200,848 $ 557,014 $ 581,201 |
Retirement Plan
Retirement Plan | 9 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | NOTE G – RETIREMENT PLAN In June 1997, the Company adopted a qualified 401(k) retirement plan for all full-time employees who are twenty-one years of age and have completed twelve months of service. The plan allows total employee contributions of up to fifteen percent (15%) of the eligible employee’s salary through salary reduction. The Company makes a matching contribution of twenty percent (20%) of each employee’s contribution for each dollar of employee deferral up to five percent (5%) of the employee’s salary. Net assets for the plan, as estimated by Union Central, Inc., which maintains the plan’s records, were approximately $1,486,000 at November 30, 2019. Pension expense for the nine months ended August 31, 2020 and August 31, 2019 was $1,602 and $2,392, respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Aug. 31, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE H – SHAREHOLDERS’ EQUITY [1] Preferred Stock In February 1996, the Company amended its Certificate of Incorporation to authorize the issuance of 1,000,000 shares of preferred stock in one or more series. In August 2010, the number of preferred shares authorized for issuance was increased to 5,000,000 shares. In November 2000, the Company authorized 100,000 shares of preferred stock as Non-Voting Redeemable Convertible Series C Preferred Stock (“Series C Preferred”). Each share of Series C Preferred is automatically convertible into 10 shares of our common stock upon shareholder approval. If the Series C Preferred were converted into common stock on or before April 15, 2001, these shares were entitled to cumulative dividends at the rate of $.50 per share per annum commencing April 15, 2001 payable on June 30 and December 31 of each year. In November 2000, 70,000 shares of the Series C Preferred were issued in payment of financial consulting services to its investment banker and a shareholder of the Company. Between April 2001 and July 2015, 60,000 shares of the series C shares were repurchased or converted to common stock. Dividends aggregating $149,069 have not been paid for the semi-annual periods ended December 31, 2001 through the semi-annual payment due December 31, 2019. The Company has accrued these dividends. At August 31, 2020, there are 10,000 shares of Series C Preferred issued and outstanding. In October 2016, the Company authorized 75,000 shares of preferred stock as Voting Non-Redeemable Convertible Series D Preferred Stock (“Series D Preferred”). None of the Series D Preferred Stock is outstanding as of August 31, 2020. [2] 2010 Incentive Stock Plan In March 2010, the Company adopted, and in April 2010 the shareholders ratified, the 2010 Incentive Stock Plan (“2010 Stock Plan”). The 2010 Stock Plan provides for the grant of options to officers, employees, directors or consultants to the Company to purchase an aggregate of 1,500,000 common shares. In March 2019, one employee director exercised options to acquire 25,000 shares of common stock at $0.87 per share. [3] 2015 Incentive Stock Plan In November 2015, the Company adopted and the shareholders ratified, the 2015 Incentive Stock Plan (“2015 Stock Plan”). The 2015 Stock Plan provides for the grant of options to officers, employees, directors or consultants to the Company to purchase an aggregate of 1,500,000 common shares. In May 2016 a total of 99,151 shares were issued to the Company’s officers as part of their 2015 bonus compensation under the 2015 Stock Plan. In May 2019, a total of 47,207 shares were issued to the Company’s officers as part of their 2018 bonus compensation under the 2015 Stock Plan. In April 2020, the Company awarded one non-employee director 15,000 shares of its common stock under the 2015 Stock Plan. The Company recorded a cost of $21,150 related to the issuance of these shares. In April 2020, a total of 27,500 shares were issued to one of the Company’s officers as part of their 2019 bonus compensation under the 2015 Stock Plan. The Company recorded a cost of $41,250 relating to the issuance of these shares. In April 2020, the Company granted stock options to (a) four non-employee directors to each purchase 15,000 shares of common stock, (b) one non-employee-director to purchase 25,000 shares of common stock, and (c) two Company officers to each purchase 50,000 shares of common stock at an exercise price of $1.41 per share, the market price of the common stock on the date of the grant. These options vest immediately and expire five years from the grant date. The Company recorded a cost of $154,534 related to the granting of these options. Activity in the Company’s stock plans for the period ended August 31, 2020 is summarized as follows: Weighted Average Shares Exercise Options outstanding December 1, 2019 147,000 $ 1.01 Options issued in the nine months ended August 31, 2020 185,000 $ 1.41 Options exercised in the nine months ended August 31, 2020 (75,000 ) $ (0.87 ) Options cancelled in the nine months ended August 31, 2020 - $ - Options outstanding at August 31, 2020 257,000 $ 1.34 Options exercisable at August 31, 2020 257,000 $ 1.34 The intrinsic value of the exercisable options at August 31, 2020 totaled $7,200. At August 31, 2020 the weighted average remaining life of the stock options is 3.48 years. At August 31, 2020 there was no unrecognized compensation cost related to the stock options granted under the plan. [4] Compensation of Directors Compensation for each non-employee director is $2,500 per month (and $3,500 per month for a non-employee director that serves as the chairman of more than two committees of the Board of Directors). |
Income Taxes
Income Taxes | 9 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE I – 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: August 31, November 30, 2020 2019 Deferred Tax Assets Net operating loss $ 1,287,289 $ 1,524,286 Allowance for bad debts 29,921 27,121 Inventory 60,746 60,746 Other 85,562 65,353 Depreciation 64,074 65,402 Total deferred tax assets 1,527,592 1,742,908 Valuation allowance (522,159 ) (557,168 ) Deferred Tax Assets $ 1,005,433 $ 1,185,740 The 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 valuation allowance decreased by $35,009 during the nine months ended August 31, 2020. This valuation is based on management estimates of future taxable income. Although the degree of variability inherent in the estimates of future taxable income is significant and subject to change in the near term, management believes, that the estimate is adequate. The estimated valuation allowance is continually reviewed and as adjustments to the allowance become necessary, such adjustments are reflected in the current operations. The Company’s income tax expense consists of the following: Nine Months Ended August 31, August 31, Current: Federal $ - $ (38,519 ) States 31,529 71,678 31,529 33,159 Deferred: Federal 142,442 (126,275 ) States 37,865 (33,567 ) 180,307 (159,842 ) Provision for income taxes $ 211,836 $ (126,683 ) The Company files a consolidated income tax return with its wholly-owned subsidiaries and has net operating loss carryforwards of approximately $5,751,000 for federal and state purposes, which expire through 2020. 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: Nine Months ended August 31, August 31, 2020 2019 U.S Federal Income tax statutory rate 21 % 21 % Valuation allowance 4 % (32 )% State income taxes 5 % 4 % Other - - Effective tax rate 30 % (7 )% |
Operating Lease Commitments
Operating Lease Commitments | 9 Months Ended |
Aug. 31, 2020 | |
Disclosure Text Block [Abstract] | |
OPERATING LEASE COMMITMENTS | NOTE J – OPERATING LEASE COMMITMENTS The Company leases its office and warehouse space through 2030 from a corporation that is partially owned by officers/shareholders of the Company (“Related Company”). Annual minimum rental payments to the Related Company approximated $180,000 for the year ended November 30, 2019, and increase at the rate of two per cent per annum throughout the lease term. Pursuant to the lease, rent expense charged to operations differs from rent paid because of scheduled rent increases. Accordingly, the Company has recorded deferred rent. Rent expense is calculated by allocating to rental payments, including those attributable to scheduled rent increases, on a straight line basis, over the lease term. In June 2019, the Company renewed its lease to rent office space and a warehouse in Hong Kong for two years. Annual minimum rental payments for this space are approximately $68,460. In January 2019, the Company entered into a lease to rent warehouse space in Hong Kong for two years. Annual minimum rental payments for this space are approximately $36,840. The Company’s future minimum rental commitments at August 31, 2020 are as follows: Twelve Months Ended August 31, 2021 $ 258,528 2022 193,390 2023 197,258 2024 201,203 2025 205,227 2026 and after $ 1,108,281 $ 2,163,887 Net rental expense for the nine months ended August 31, 2020 and August 31, 2019 were $281,599 and $265,114 respectively, of which $200,156 and $197,418 respectively, was paid to the Related Company. |
Employment and Other Agreements
Employment and Other Agreements | 9 Months Ended |
Aug. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
EMPLOYMENT AND OTHER AGREEMENTS | NOTE K – EMPLOYMENT AND OTHER AGREEMENTS In February 2016, the Company entered into revised employment agreements with two officers of the Company. Pursuant to these agreements, the base salary for one officer is $275,000 and the base salary for the other officer is $225,000. The agreements continue until terminated by either party. The Company’s Compensation Committee may award these officers with bonuses and will review the base salary amounts for each of the officers on an annual basis to determine if any changes to the base salary amounts need to be made and may also award these officers with annual bonuses. Pursuant to the employment agreements, the officers are prohibited from engaging in activities which are competitive with those of the Company during their employment with the Company and for one year following termination. If the agreement is terminated other than for cause, the officer would be entitled to all base salary earned through the date of termination, accrued but unused vacation, all vested equity, and bonus amounts payable to the officer through the date of termination. The officers would also be entitled to receive an additional thirty-six months of annual compensation equal to the average of his base salary and bonus for the three calendar years prior to the date of termination, payable in accordance with the Company’s regular payroll practice over a 52-week period. |
Major Customers
Major Customers | 9 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
MAJOR CUSTOMERS | NOTE L – MAJOR CUSTOMERS The Company had two customers who accounted for 17% and 15% of net sales for the nine months ended August 31, 2020 and two customers who accounted for 13% and 12% of net sales for the nine months ended August 31, 2019. The Company had one customer who accounted for 16% of accounts receivable at August 31, 2020 and one customer who accounted for 11% of accounts receivable at August 31, 2019. |
Major Suppliers
Major Suppliers | 9 Months Ended |
Aug. 31, 2020 | |
Major Suppliers [Abstract] | |
MAJOR SUPPLIERS | NOTE M – MAJOR SUPPLIERS During the nine months ended August 31, 2020 and August 31, 2019 there was one foreign supplier accounting for 39% and 39% of total inventory purchased. The Company purchases substantially all of its products overseas. For the nine months ended August 31, 2020, the Company purchased 45% of its products from Taiwan, 16% from Hong Kong, 25% from elsewhere in Asia and less than 1% overseas outside of Asia. The Company purchases the balance of its products in the United States. |
Export Sales
Export Sales | 9 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
EXPORT SALES | NOTE N – EXPORT SALES The Company’s export sales were as follows: Nine Months Ended August 31, August 31, 2020 2019 Canada 2,945,773 3,311,535 China 3,948,811 4,240,122 Other Asian Countries 1,099,040 1,811,454 South America 143,928 394,140 Europe 843,747 931,916 Revenues are attributed to countries based on location of customer. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Aug. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE O – SUBSEQUENT EVENTS In early January 2020, an outbreak of a respiratory illness caused by the Coronavirus was identified in Wuhan, China. As part of its effort to combat the virus, the government of China has placed travel restrictions throughout parts of China. This has resulted in some of the Company’s customers and suppliers being closed for an extended period or operating at significantly below their normal capacity and will also affect our suppliers that source some of their materials from China. Conditions in China have improved. Some customers and suppliers are back to full operation but others are taking longer. The duration and intensity of this global health emergency and related disruptions is uncertain, although there has been some improvement globally, including Asia, America and Europe. The duration of this crisis and its impact on both the Company’s customers and supply chain is expected to have a material impact on the consolidated results of operations, cash flows and financial condition, but cannot be reasonably estimated at this time. As an update, the unprecedented virus has grown significantly especially in America and has significantly impacted the Company’s customers. The Company has experienced order cancellations and order hold notices from customers and expects this to continue. Although the coronavirus situation is still very serious on a global basis, the Company’s business has improved in the third quarter, with sales increasing and our customer’s outlook for their business stronger at this time. This increase in business cannot be guaranteed to continue as it may be impacted by the coronavirus conditions, which change on an ongoing basis. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | (1) Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Surge, Challenge, and Surge Limited (collectively the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and disclosures required by U.S. GAAP for complete consolidated financial statements have been condensed or omitted herein. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended November 30, 2019 filed with the SEC on February 28, 2020. The unaudited interim condensed consolidated financial information presented herein reflects all normal adjustments that are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The Company is responsible for the unaudited interim consolidated financial statements included in this report. The results of operations of any interim period are not necessarily indicative of the results for the full year. |
Accounts Receivable | (2) Accounts Receivable: Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the payment terms. The Company reviews its exposure to amounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base, bad debts to date have not been material. |
Revenue Recognition | (3) Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU replaces nearly all existing U.S. generally accepted accounting principles guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment by the Company. The Company adopted the standard using the modified retrospective approach in its fiscal year beginning December 1, 2017. The preponderance of the Company’s contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment. Revenue is recognized for products sold by the Company when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, collectability is reasonably assured and title and risk of loss have been transferred to the customer. This occurs when product is shipped from the Company’s warehouse. For direct shipments, revenue is recognized when product is shipped from the Company’s supplier. The Company has a long term supply agreement with one of our suppliers. The Company purchases the merchandise from the supplier and has the supplier directly ship to the customer through a freight forwarder. Title passes to customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $1,330,000 and $2,402,000 for the nine months ended August 31, 2020 and August 31, 2019 respectively. The Company also acts as a sales agent to certain customers in North America for one of its suppliers. The Company reports these commissions as revenues in the period earned. Commission revenue totaled $280,274 and $462,111 for the nine months ended August 31, 2020 and August 31, 2019 respectively. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company and its subsidiaries currently have agreements with several distributors. There are no provisions for the granting of price concessions in any of the agreements. Revenues under these distribution agreements were approximately $4,729,000 and $4,961,000 for the nine months ended August 31, 2020 and August 31, 2019 respectively. |
Inventories | (4) Inventories Inventories, which consist solely of products held for resale, are stated at the lower of cost (first-in, first-out method) or net realizable value. Products are included in inventory when the Company obtains title and risk of loss on the products, primarily when shipped from the supplier. Inventory in transit principally from foreign suppliers at August 31, 2020 was $540,853. The Company, at August 31, 2020 has a reserve against slow moving and obsolete inventory of $250,565. From time to time the Company’s products are subject to legislation from various authorities on environmental matters. |
Depreciation and Amortization | (5) Depreciation and Amortization Fixed assets are recorded at cost. Depreciation is generally calculated on a straight line method and amortization of leasehold improvements is provided for on the straight-line method over the estimated useful lives of the various assets as follows: Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter Maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. |
Concentration of Credit Risk | (6) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company believes that concentration with regards to accounts receivable is limited due to its customer base. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At August 31, 2020 and November 30, 2019, the Company’s uninsured cash balances totaled $3,244,820 and $2,174,808, respectively. |
Income Taxes | (7) Income Taxes The Company’s deferred income taxes arise primarily from the differences in the recording of net operating losses, allowances for bad debts, inventory reserves, accrued payroll and depreciation expense for financial reporting and income tax purposes. A valuation allowance is provided when it has been determined to be more likely than not that the likelihood of the realization of deferred tax assets will not be realized. See Note I. The Company follows the provisions of the Accounting Standards Codification topic, ASC 740, “Income Taxes” (ASC 740). There have been no unrecognized tax benefits and, accordingly, there has been no effect on the Company’s financial condition or results of operations as a result of ASC 740. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years before fiscal years ending November 30, 2016, and state tax examinations for years before fiscal years ending November 30, 2015. Management does not believe there will be any material changes in our unrecognized tax positions over the next twelve months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740, there was no accrued interest or penalties associated with any unrecognized benefits, nor was any interest expense recognized during the nine months ended August 31, 2020 and August 31, 2019. |
Cash Equivalents | (8) Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Use of Estimates | (9) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Marketing and promotional costs | (10) Marketing and promotional costs: Marketing and promotional costs are expensed as incurred and have not been material to date. The Company has contractual arrangements with several of its distributors which provide for cooperative advertising rights to the distributor as a percentage of sales. Cooperative advertising is reflected as a reduction in revenues and has not been material to date. |
Fair Value of Financial Instruments | (11) Fair Value of Financial Instruments The carrying amount of cash balances, accounts receivable, accounts payable and accrued expenses approximate their fair value based on the nature of those items. Estimated fair values of financial instruments are determined using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret the market data used to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative of the amounts that could be realized in a current market exchange. |
Shipping Costs | (12) Shipping Costs The Company classifies shipping costs as a component of selling expenses. Shipping costs totaled $2,654 and $4,573 for the nine months ended August 31, 2020 and August 31, 2019 respectively. |
Earnings Per Share | (13) Earnings Per Share Basic earnings per share includes no dilution and is computed by dividing net (loss) income available to common stockholders by the weighted average number of common shares outstanding for the period. In the period with a profit, the difference between reported basic and diluted weighted-average common shares results from the assumption that all dilutive stock options and convertible preferred stock exercised into common stock. Total potentially dilutive shares excluded from diluted weighted shares outstanding at August 31, 2020 and August 31, 2019 totaled 199,333 and 134,373, respectively. |
Stock Based Compensation | (14) Stock Based Compensation Stock Based Compensation to Employees The Company accounts for its stock-based compensation for employees in accordance with Accounting Standards Codification (“ASC”) 718. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees over the related vesting period. Stock Based Compensation to Other than Employees The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. |
Leases | (15) Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) On December 1, 2019, the Company adopted Topic 842 applying the optional transition method, which allows an entity to apply the new standard at the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of adopting Topic 842, the Company recognized assets and liabilities for the rights and obligations created by operating leases totaling approximately $290,000. The Company determines if a contract contains a lease at inception based on whether it conveys the right to control the use of an identified asset. Substantially all of the Company's leases are classified as operating leases. The Company records operating lease right-of-use assets within “Other assets” and lease liabilities are recorded within “current and noncurrent liabilities” in the consolidated balance sheets. Lease expenses are recorded within “General and administrative expenses” in the consolidated statements of operations. Operating lease payments are presented within “Operating cash flows” in the consolidated statements of cash flows. Operating lease right-of-use assets and lease liabilities are recognized based on the net present value of future minimum lease payments over the lease term starting on the commencement date. The Company generally is not able to determine the rate implicit in its leases and, as such, applies an incremental borrowing rate based on the Company's cost of borrowing for the relevant terms of each lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include an option to extend or terminate a lease if it is reasonably certain that the Company will exercise such options. The Company has elected the practical expedient to not separate lease components from non-lease components, and also has elected not to record a right-of-use asset or lease liability for leases which, at inception, have a term of twelve months or less. Variable lease payments are recognized in the period in which the obligation for those payments is incurred. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful life of fixed assets | Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | August 31, November 30, 2020 2019 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 1,022,556 1,022,556 Computer Equipment 1,095,335 1,075,949 Less-Accumulated Depreciation (2,334,151 ) (2,305,724 ) Net Fixed Assets $ 111,711 $ 120,752 |
Financing Lease Obligations (Ta
Financing Lease Obligations (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Financing Lease Obligations [Abstract] | |
Schedule of future minimum lease payments under these Financing lease obligations | 2020 $ 9,779 2021 $ 9,779 2022 $ 1,786 Total $ 21,344 Less: interest portion 2,228 Present value of net minimum lease payments $ 19,116 Less: current portion 8,345 Non-current portion $ 10,771 |
Schedule of financing lease obligations mature | Financing lease obligations mature as follows: Twelve Months Ended August 31: 2020 $ 8,345 2021 $ 9,158 2022 $ 1,613 Principal payments remaining $ 19,116 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Accrued Expenses [Abstract] | |
Schedule of accrued expenses | August 31, November 30, 2020 2019 Commissions $ 238,188 $ 233,784 Preferred stock dividends 151,569 146,569 Other accrued expenses 167,257 200,848 $ 557,014 $ 581,201 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Equity [Abstract] | |
Schedule of activity in the 2010 stock plan | Weighted Average Shares Exercise Options outstanding December 1, 2019 147,000 $ 1.01 Options issued in the nine months ended August 31, 2020 185,000 $ 1.41 Options exercised in the nine months ended August 31, 2020 (75,000 ) $ (0.87 ) Options cancelled in the nine months ended August 31, 2020 - $ - Options outstanding at August 31, 2020 257,000 $ 1.34 Options exercisable at August 31, 2020 257,000 $ 1.34 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred income taxes | August 31, November 30, 2020 2019 Deferred Tax Assets Net operating loss $ 1,287,289 $ 1,524,286 Allowance for bad debts 29,921 27,121 Inventory 60,746 60,746 Other 85,562 65,353 Depreciation 64,074 65,402 Total deferred tax assets 1,527,592 1,742,908 Valuation allowance (522,159 ) (557,168 ) Deferred Tax Assets $ 1,005,433 $ 1,185,740 |
Schedule of income tax expense | Nine Months Ended August 31, August 31, Current: Federal $ - $ (38,519 ) States 31,529 71,678 31,529 33,159 Deferred: Federal 142,442 (126,275 ) States 37,865 (33,567 ) 180,307 (159,842 ) Provision for income taxes $ 211,836 $ (126,683 ) |
Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate | Nine Months ended August 31, August 31, 2020 2019 U.S Federal Income tax statutory rate 21 % 21 % Valuation allowance 4 % (32 )% State income taxes 5 % 4 % Other - - Effective tax rate 30 % (7 )% |
Operating Lease Commitments (Ta
Operating Lease Commitments (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of future minimum rental commitments | 2021 $ 258,528 2022 193,390 2023 197,258 2024 201,203 2025 205,227 2026 and after $ 1,108,281 $ 2,163,887 |
Export Sales (Tables)
Export Sales (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of export sales | Nine Months Ended August 31, August 31, 2020 2019 Canada 2,945,773 3,311,535 China 3,948,811 4,240,122 Other Asian Countries 1,099,040 1,811,454 South America 143,928 394,140 Europe 843,747 931,916 |
Organization, Description of _2
Organization, Description of Company’s Business and Basis of Presentation (Details) | 1 Months Ended | |
Feb. 28, 2019shares | May 31, 2002shares | |
Accounting Policies [Abstract] | ||
Minimum number of shareholders to hold equity | 2 | |
Number of shares outstanding - held by surge | 999 | |
Number of shares outstanding - held by officers of surge | 1 | |
Ownership rights transferred to parent company | 1 | |
Decrease in common stock shares authorized for issuance | 50,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Accounting Policies [Abstract] | |||
Direct shipments revenue | $ 1,330,000 | $ 2,402,000 | |
Commission revenue | 280,274 | 462,111 | |
Revenues from distribution agreements | 4,729,000 | 4,961,000 | |
Inventory in transit from foreign suppliers | 540,853 | ||
Reserve against slow moving and obsolete inventory | 250,565 | ||
Amount of uninsured cash balances | 3,244,820 | $ 2,174,808 | |
Shipping costs | $ 2,654 | $ 4,573 | |
Diluted weighted shares outstanding (in Shares) | 199,333 | 134,373 | |
Capital lease obligations | $ 290,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets | 9 Months Ended |
Aug. 31, 2020 | |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Computer equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold Improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items] | |
Property, plant and equipment, estimated useful lives | Estimated useful life or lease term, whichever is shorter |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 9,523 | $ 9,626 | $ 28,428 | $ 28,878 |
Fixed Assets (Details) - Schedu
Fixed Assets (Details) - Schedule of fixed assets - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Less-Accumulated Depreciation | $ (2,334,151) | $ (2,305,724) |
Net Fixed Assets | 111,711 | 120,752 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 327,971 | 327,971 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 1,022,556 | 1,022,556 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | $ 1,095,335 | $ 1,075,949 |
Financing Lease Obligations (De
Financing Lease Obligations (Details) | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Financing Lease Obligations [Abstract] | |
Leases equipment | 2 |
Monthly payment | $ 815 |
Interest rates | 9.342% |
Leases payment, description | the equipment can be purchased for one dollar for each lease. The terms of the leases are 60 months with a combined monthly payment of $815, respectively. |
Leases terminate term | 2022 |
Financing Lease Obligations (_2
Financing Lease Obligations (Details) - Schedule of future minimum lease payments under these Financing lease obligations | Aug. 31, 2020USD ($) |
Schedule of future minimum lease payments under these Financing lease obligations [Abstract] | |
2020 | $ 9,779 |
2021 | 9,779 |
2022 | 1,786 |
Total | 21,344 |
Less: interest portion | 2,228 |
Present value of net minimum lease payments | 19,116 |
Less: current portion | 8,345 |
Non-current portion | $ 10,771 |
Financing Lease Obligations (_3
Financing Lease Obligations (Details) - Schedule of financing lease obligations mature | Aug. 31, 2019USD ($) |
Schedule of financing lease obligations mature [Abstract] | |
2020 | $ 8,345 |
2021 | 9,158 |
2022 | 1,613 |
Principal payments remaining | $ 19,116 |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | 9 Months Ended | |
Aug. 31, 2020 | Feb. 28, 2017 | |
Loans Payable (Details) [Line Items] | ||
Line of credit | $ 0 | $ 3,000,000 |
Loans payable interest rate | 1.00% | |
Paycheck Protection Program [Member] | ||
Loans Payable (Details) [Line Items] | ||
Laon proceeds | $ 449,700 | |
Line of credit, interest rate, description | The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. |
Accrued Expenses (Details) - Sc
Accrued Expenses (Details) - Schedule of accrued expenses - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Schedule of accrued expenses [Abstract] | ||
Commissions | $ 238,188 | $ 233,784 |
Preferred stock dividends | 151,569 | 146,569 |
Other accrued expenses | 167,257 | 200,848 |
Total | $ 557,014 | $ 581,201 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 1997 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
Description for retirement plan | Company adopted a qualified 401(k) retirement plan for all full-time employees who are twenty-one years of age and have completed twelve months of service. | |||
Total employee contributions | 15.00% | |||
Employer matching contribution percentage | 20.00% | |||
Employee deferral percentage | 5.00% | |||
Net assets for plan | $ 1,486,000 | |||
Pension expense | $ 1,602 | $ 2,392 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2020 | May 31, 2019 | Mar. 31, 2019 | May 31, 2016 | Mar. 31, 2010 | Nov. 30, 2000 | Aug. 31, 2020 | Nov. 30, 2015 | Nov. 30, 2019 | Oct. 31, 2016 | Feb. 29, 1996 | |
Shareholders' Equity (Details) [Line Items] | |||||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 75,000 | 1,000,000 | |||||||
Stock option, description | the Company granted stock options to (a) four non-employee directors to each purchase 15,000 shares of common stock, (b) one non-employee-director to purchase 25,000 shares of common stock, and (c) two Company officers to each purchase 50,000 shares of common stock at an exercise price of $1.41 per share, the market price of the common stock on the date of the grant. These options vest immediately and expire five years from the grant date. The Company recorded a cost of $154,534 related to the granting of these options. | ||||||||||
Intrinsic value of exercisable options (in Dollars) | $ 7,200 | ||||||||||
Weighted average remaining life | 3 years 175 days | ||||||||||
Cumulative dividend per share per annum (in Dollars per share) | $ 0.50 | ||||||||||
Incentive Stock 2010 Plan [Member] | Employee Stock Option [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Number of common shares purchased for options granted | 1,500,000 | ||||||||||
Incentive Stock 2015 Plan [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Number of common shares purchased for options granted | 47,207 | ||||||||||
Incentive Stock 2015 Plan [Member] | Employee Stock Option [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Number of common shares purchased for options granted | 1,500,000 | ||||||||||
One Employee Director [Member] | Employee Stock Option [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Exercise of options, shares | 25,000 | ||||||||||
Common stock per value (in Dollars per share) | $ 0.87 | ||||||||||
Compensation (in Dollars) | $ 2,500 | ||||||||||
Officer [Member] | Incentive Stock 2015 Plan [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Issuance of shares as compensation, shares | 99,151 | ||||||||||
Non Employee Director [Member] | Employee Stock Option [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Compensation (in Dollars) | $ 3,500 | ||||||||||
Non Employee Director [Member] | Incentive Stock 2015 Plan [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Number of common shares purchased for options granted | 15,000 | ||||||||||
Issuance of shares as compensation, shares | 21,150 | ||||||||||
Employee Stock Option [Member] | Incentive Stock 2015 Plan [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Number of common shares purchased for options granted | 27,500 | ||||||||||
Issuance of shares as compensation, shares | 41,250 | ||||||||||
Series C Preferred Stock [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Preferred stock, shares authorized | 100,000 | 100,000 | 100,000 | ||||||||
Number of shares converted into common stock upon conversion | 10 | ||||||||||
Preferred stock issued in payment of financial consulting services | 70,000 | ||||||||||
Converted into common stock, description | Between April 2001 and July 2015, 60,000 shares of the series C shares were repurchased or converted to common stock. Dividends aggregating $149,069 have not been paid for the semi-annual periods ended December 31, 2001 through the semi-annual payment due December 31, 2019. The Company has accrued these dividends. At August 31, 2020, there are 10,000 shares of Series C Preferred issued and outstanding. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of activity in the 2010 stock plan - Equity Option [Member] | 9 Months Ended |
Aug. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding December 1, 2019 | shares | 147,000 |
Options outstanding December 1, 2019 | $ / shares | $ 1.01 |
Options issued in the nine months ended August 31, 2020 | shares | 185,000 |
Options issued in the nine months ended August 31, 2020 | $ / shares | $ 1.41 |
Options exercised in the nine months ended August 31, 2020 | shares | (75,000) |
Options exercised in the nine months ended August 31, 2020 | $ / shares | $ (0.87) |
Options cancelled in the nine months ended August 31, 2020 | shares | |
Options cancelled in the nine months ended August 31, 2020 | $ / shares | |
Options outstanding at August 31, 2020 | shares | 257,000 |
Options outstanding at August 31, 2020 | $ / shares | $ 1.34 |
Options exercisable at August 31, 2020 | shares | 257,000 |
Options exercisable at August 31, 2020 | $ / shares | $ 1.34 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Valuation allowance for deferred tax assets | $ 35,009 |
Net operating loss carryforwards | $ 5,751,000 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of deferred income taxes - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Deferred Tax Assets | ||
Net operating loss | $ 1,287,289 | $ 1,524,286 |
Allowance for bad debts | 29,921 | 27,121 |
Inventory | 60,746 | 60,746 |
Other | 85,562 | 65,353 |
Depreciation | 64,074 | 65,402 |
Total deferred tax assets | 1,527,592 | 1,742,908 |
Valuation allowance | (522,159) | (557,168) |
Deferred Tax Assets | $ 1,005,433 | $ 1,185,740 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of income tax expense - USD ($) | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Current: | ||||
Federal | $ (38,519) | |||
States | 31,529 | 71,678 | ||
Current, total | 31,529 | 33,159 | ||
Deferred: | ||||
Federal | 142,442 | (126,275) | ||
States | 37,865 | (33,567) | ||
Deferred, total | 180,307 | (159,842) | ||
Provision for income taxes | $ (157,526) | $ (78,304) | $ 211,836 | $ (126,683) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate [Abstract] | ||
U.S Federal Income tax statutory rate | 21.00% | 21.00% |
Valuation allowance | 4.00% | (32.00%) |
State income taxes | 5.00% | 4.00% |
Other | ||
Effective tax rate | 30.00% | (7.00%) |
Operating Lease Commitments (De
Operating Lease Commitments (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jan. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Operating Lease Commitments (Details) [Line Items] | |||||
Net rental expense | $ 281,599 | $ 265,114 | |||
Related Parties [Member] | |||||
Operating Lease Commitments (Details) [Line Items] | |||||
Annual minimum rental payments | $ 180,000 | ||||
Net rental expense | $ 200,156 | $ 197,418 | |||
Hong Kong [Member] | |||||
Operating Lease Commitments (Details) [Line Items] | |||||
Annual minimum rental payments | $ 68,460 | $ 36,840 | |||
Term of lease | 2 years | 2 years |
Operating Lease Commitments (_2
Operating Lease Commitments (Details) - Schedule of future minimum rental commitments | Aug. 31, 2020USD ($) |
Schedule of future minimum rental commitments [Abstract] | |
2021 | $ 258,528 |
2022 | 193,390 |
2023 | 197,258 |
2024 | 201,203 |
2025 | 205,227 |
2026 and after | 1,108,281 |
Future minimum rental commitments | $ 2,163,887 |
Employment and Other Agreemen_2
Employment and Other Agreements (Details) | 1 Months Ended | 9 Months Ended |
Feb. 29, 2016USD ($) | Aug. 31, 2020 | |
Employment and Other Agreements (Details) [Line Items] | ||
Number of officers involved in employment agreements | 2 | |
Employment agreements termination, description | one year following termination. | |
Compensation, description | an additional thirty-six months of annual compensation equal to the average of his base salary and bonus for the three calendar years prior to the date of termination, payable in accordance with the Company’s regular payroll practice over a 52-week period. | |
One Officer [Member] | ||
Employment and Other Agreements (Details) [Line Items] | ||
Base salary | $ 275,000 | |
Other Officer [Member] | ||
Employment and Other Agreements (Details) [Line Items] | ||
Base salary | $ 225,000 |
Major Customers (Details)
Major Customers (Details) | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Net sales [Member] | ||
Major Customers (Details) [Line Items] | ||
Number of customers | 2 | 2 |
Accounts Receivable [Member] | ||
Major Customers (Details) [Line Items] | ||
Number of customers | 1 | 1 |
Customer One [Member] | Net sales [Member] | ||
Major Customers (Details) [Line Items] | ||
Percentage of concentration risk | 17.00% | 13.00% |
Customer One [Member] | Accounts Receivable [Member] | ||
Major Customers (Details) [Line Items] | ||
Percentage of concentration risk | 16.00% | 11.00% |
Customer Two [Member] | Net sales [Member] | ||
Major Customers (Details) [Line Items] | ||
Percentage of concentration risk | 15.00% | 12.00% |
Major Suppliers (Details)
Major Suppliers (Details) | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Major Suppliers (Details) [Line Items] | ||
Number of foreign supplier | 1 | 1 |
Supplier Concentration Risk [Member] | Major Suppliers [Member] | Total Inventory Purchased [Member] | ||
Major Suppliers (Details) [Line Items] | ||
Percentage of inventory purchased of products | 39.00% | 39.00% |
Supplier Concentration Risk [Member] | Taiwan [Member] | Total Inventory Purchased [Member] | ||
Major Suppliers (Details) [Line Items] | ||
Percentage of inventory purchased of products | 45.00% | |
Supplier Concentration Risk [Member] | Hong Kong [Member] | Total Inventory Purchased [Member] | ||
Major Suppliers (Details) [Line Items] | ||
Percentage of inventory purchased of products | 16.00% | |
Supplier Concentration Risk [Member] | Elsewhere in Asia [Member] | Total Inventory Purchased [Member] | ||
Major Suppliers (Details) [Line Items] | ||
Percentage of inventory purchased of products | 25.00% | |
Supplier Concentration Risk [Member] | Overseas Outside of Asia [Member] | Total Inventory Purchased [Member] | ||
Major Suppliers (Details) [Line Items] | ||
Percentage of inventory purchased of products | 1.00% |
Export Sales (Details) - Schedu
Export Sales (Details) - Schedule of export sales - USD ($) | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Canada [Member] | ||
Revenue from External Customer [Line Items] | ||
Export sales | $ 2,945,773 | $ 3,311,535 |
China [Member] | ||
Revenue from External Customer [Line Items] | ||
Export sales | 3,948,811 | 4,240,122 |
Other Asian Countries [Member] | ||
Revenue from External Customer [Line Items] | ||
Export sales | 1,099,040 | 1,811,454 |
South America [Member] | ||
Revenue from External Customer [Line Items] | ||
Export sales | 143,928 | 394,140 |
Europe [Member] | ||
Revenue from External Customer [Line Items] | ||
Export sales | $ 843,747 | $ 931,916 |