Surge Components (SPRS) 10-Q 15 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	May 31, 2016	Jul. 15, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	SURGE COMPONENTS INC
Entity Central Index Key	747,540
Amendment Flag	false
Current Fiscal Year End Date	--11-30
Document Type	10-Q
Document Period End Date	May 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,091,353
Trading Symbol	SPRS

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	May 31, 2016	Nov. 30, 2015
Current assets:
Cash	$ 7,234,406	$ 7,169,118
Accounts receivable - net of allowance for doubtful accounts of $143,093 and $127,531	4,200,038	4,693,749
Inventory, net	3,493,977	3,199,463
Prepaid expenses and income taxes	161,226	131,522
Deferred income taxes	337,324	249,533
Total current assets	15,426,971	15,443,385
Fixed assets - net of accumulated depreciation and amortization of $2,169,814 and $2,154,182	90,627	104,738
Deferred income taxes	674,648	748,597
Other assets	13,384	13,384
Total assets	16,205,630	16,310,104
Current liabilities:
Accounts payable	3,384,562	3,261,763
Accrued expenses and taxes	542,091	572,487
Accrued salaries	274,042	528,957
Total current liabilities	4,200,695	4,363,207
Deferred rent	41,245	41,955
Total liabilities	4,241,940	4,405,162
Commitments and contingencies
Shareholders' equity
Common stock - $.001 par value stock, 75,000,000 shares authorized, 10,095,453 and 9,999,125 shares issued and outstanding	10,096	9,999
Additional paid-in capital	23,601,708	23,529,729
Accumulated deficit	(11,648,124)	(11,634,796)
Total shareholders' equity	11,963,690	11,904,942
Total liabilities and shareholders' equity	16,205,630	16,310,104
Series A Preferred stock
Shareholders' equity
Preferred stock - $.001 par value stock, 5,000,000 shares authorized:
Series B Preferred stock
Shareholders' equity
Preferred stock - $.001 par value stock, 5,000,000 shares authorized:
Series C Preferred stock
Shareholders' equity
Preferred stock - $.001 par value stock, 5,000,000 shares authorized:	$ 10	$ 10

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	May 31, 2016	Nov. 30, 2015
Allowance for doubtful accounts of accounts receivable	$ 143,093	$ 127,531
Accumulated depreciation and amortization on fixed assets	$ 2,169,814	$ 2,154,182
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	10,095,453	9,999,125
Common stock, shares outstanding	10,095,453	9,999,125
Series A Preferred stock
Preferred stock, shares authorized	260,000	260,000
Preferred stock, shares outstanding
Series B Preferred stock
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares outstanding
Series C Preferred stock
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares outstanding	10,000	10,000
Preferred stock, shares issued	10,000	10,000
Preferred stock, liquidation preference per share	$ 5	$ 5

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
Income Statement [Abstract]
Net sales	$ 7,080,442	$ 7,119,265	$ 13,396,453	$ 14,078,890
Cost of goods sold	5,444,592	5,258,324	10,104,591	10,372,989
Gross profit	1,635,850	1,860,941	3,291,862	3,705,901
Operating expenses:
Selling and shipping expenses	665,300	617,508	1,191,146	1,167,070
General and administrative expenses	1,090,073	957,742	2,088,975	1,962,472
Depreciation and amortization	7,816	8,957	15,632	17,480
Total operating expenses	1,763,189	1,584,207	3,295,753	3,147,022
Loss (income) before other income (expense) and income taxes	(127,339)	276,734	(3,891)	558,879
Other income
Investment income	2,758	2,308	4,083	4,305
Other income	2,758	2,308	4,083	4,305
Loss (income) before income taxes	(124,581)	279,042	192	563,184
Income taxes	(16,782)	56,358	13,520	140,183
Net loss (income)	(107,799)	222,684	(13,328)	423,001
Dividends on preferred stock			2,500	5,425
Net loss (income) available to common shareholders	$ (107,799)	$ 222,684	$ (15,828)	$ 417,576
Net loss (income) per share available to common shareholders:
Basic	$ (0.01)	$ 0.02	$ 0	$ 0.04
Diluted	$ (0.01)	$ 0.02	$ 0	$ 0.04
Weighted Shares Outstanding:
Basic	10,004,964	9,485,943	10,002,065	9,290,532
Diluted	10,004,964	9,654,251	10,002,065	9,458,841

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	6 Months Ended
	May 31, 2016	May 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss (income)	$ (13,328)	$ 423,001
Adjustments to reconcile net loss (income) to net cash provided by operating activities:
Depreciation and amortization	15,632	17,480
Stock compensation expense	74,363	72,167
Deferred income taxes	(13,842)	130,982
Allowance for doubtful accounts	15,562	16,883
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable	478,149	(65,685)
Inventory	(294,514)	(458,201)
Prepaid expenses and income taxes	(29,704)	27,425
Other assets
Accounts payable	122,799	804,704
Deferred rent	(710)	976
Accrued expenses	(285,311)	(393,921)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	69,096	575,811
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets	(1,521)	(54,826)
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(1,521)	(54,826)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock	(2,287)
Proceeds from exercising stock options		143,750
NET CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES	(2,287)	143,750
NET CHANGE IN CASH	65,288	664,735
CASH AT BEGINNING OF PERIOD	7,169,118	6,174,561
CASH AT END OF PERIOD	7,234,406	6,839,296
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	34,865	8,978
Interest paid
NONCASH INVESTING AND FINANCING ACTIVITIES:
Accrued dividends on preferred stock	2,500	5,425
Payment of accrued interest through issuance of common stock		$ 102,399

Organization, Description of Co

Organization, Description of Company's Business and Basis of Presentation	6 Months Ended
	May 31, 2016
Organization, Description of Company's Business and Basis of Presentation [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. The number of common stock shares authorized for issuance was increased to 75,000,000 shares.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	May 31, 2016
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (1) Principles of Consolidation 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 interim consolidated financial statements have been prepared without audit, in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission. The results and trends in these interim consolidated financial statements for the six months ended May 31, 2016 and May 31, 2015 may not be representative of those for the full fiscal year or any future periods. (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 accounts 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 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 its suppliers. The Company purchases the merchandise from the supplier and has the supplier directly ship the merchandise to the customer through a freight forwarder. Title passes to the customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $1,783,000 and $1,727,000 for the six months ended May 31, 2016 and May 31, 2015 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 $177,963 and $113,998 for the six months ended May 31, 2016 and May 31, 2015 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 $3,946,000 and $4,680,000 for the six months ended May 31, 2016 and May 31, 2015 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 market. 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 May 31, 2016 approximated $1,536,000. The Company, at May 31, 2016, has a reserve against slow moving and obsolete inventory of $313,000. 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 accounts receivable. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At May 31, 2016 and November 30, 2015, the Company's uninsured cash balances totaled approximately $4,006,000 and $3,989,000, 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 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 G. 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, 2011, and state tax examinations for years before fiscal years ending November 30, 2010. 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 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 six months ended May 31, 2016 and May 31, 2015. (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 $3,465 and $4,926 for the six months ended May 31, 2016 and May 31, 2015 respectively. (13) Earnings Per Share Basic earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. 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. The Company had a net loss for the six and three months ended May 31, 2016 and accordingly, potential dilutive common shares have been excluded from this calculation as the effect would be anti-dilutive. The number of potentially dilutive shares excluded from diluted weighted shares outstanding at May 31, 2016 and May 31, 2015 totaled 635,438 and 390,130, 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.

Fixed Assets

Fixed Assets	6 Months Ended
	May 31, 2016
Fixed Assets [Abstract]
FIXED ASSETS	NOTE C - FIXED ASSETS Fixed assets consist of the following: May 31, November 30, 2016 2015 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 956,637 956,637 Computer Equipment 975,833 974,312 Less-Accumulated Depreciation (2,169,814 ) (2,154,182 ) Net Fixed Assets $ 90,627 $ 104,738 Depreciation and amortization expense for the six months ended May 31, 2016 and May 31, 2015 was $15,632 and $17,480, respectively.

Accrued Expenses

Accrued Expenses	6 Months Ended
	May 31, 2016
Accrued Expenses [Abstract]
ACCRUED EXPENSES	NOTE D - ACCRUED EXPENSES Accrued expenses consist of the following: May 31, November 30, 2016 2015 Commissions $ 231,271 $ 276,724 Preferred Stock Dividends 126,569 124,069 Other accrued expenses 184,251 171,694 $ 542,091 $ 572,487

Retirement Plan

Retirement Plan	6 Months Ended
	May 31, 2016
Retirement Plan [Abstract]
RETIREMENT PLAN	NOTE E – 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 $1,092,000 at November 30, 2015. Pension expense for the six months ended May 31, 2016 and May 31, 2015 was $1,193 and $1,613, respectively.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	May 31, 2016
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE F – 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 January 2000, the Company authorized 260,000 shares of preferred stock as Non-Voting Redeemable Convertible Series A Preferred Stock (“Series A Preferred”). As of November 30, 2015, none of the Series A preferred stock was outstanding. In November 2000, the Company authorized 200,000 shares of preferred stock as Voting Redeemable Convertible Series B Preferred Stock (“Series B Preferred”). As of November 30, 2015, none of the Series B Preferred Stock was outstanding. 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. In April 2001, 8,000 shares of the Series C Preferred were repurchased and cancelled. In April 2002, in connection with a Mutual Release, Settlement, Standstill and Non-Disparagement Agreement among other provisions, certain investors transferred back to the Company 252,000 shares of common stock, 19,300 shares of Series C preferred stock, and certain warrants, in exchange for $225,000. These repurchased shares were cancelled. In February 2006, the Company settled with a shareholder to repurchase 10,000 shares of Series C Preferred plus accrued dividends for $50,000. Pursuant to exchange agreements dated as of March 14, 2011, 9,000 shares of Series C Preferred were returned to the Company for cancellation in exchange for 112,500 shares of common stock. In October 2014, 2,000 shares of Series C Preferred were converted into 20,000 shares of common stock. In April 2015, the Company entered into a settlement agreement with a shareholder pursuant to which 7,500 shares of Series C Preferred were returned to the Company for cancellation in exchange for 110,000 shares of common stock plus $65,000 for accrued dividends and legal fees and expenses. In July 2015, 4,200 shares of Series C Preferred were exchanged for 42,000 shares of common stock and $29,838 in accrued dividends. Dividends aggregating $126,569 have not been paid for the semi-annual periods ended December 31, 2001 through the semi-annual payment due December 31, 2015. The Company has accrued these dividends. At May 31, 2016, there are 10,000 shares of Series C Preferred issued and outstanding. [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. Activity in the 2010 Stock Plan for the quarter ended May 31, 2016 is summarized as follows: Weighted Average Shares Exercise Options outstanding December 1, 2015 535,438 $ 0.85 Options issued in the six months ended May 31, 2016 - $ - Options exercised in the six months ended May 31, 2016 - $ - Options cancelled in the six months ended May 31, 2016 - $ - Options outstanding at May 31, 2016 535,438 $ 0.85 Options exercisable at May 31, 2016 535,438 $ .085 [3] 2015 Incentive Stock Plan In November 2015, the Company adopted, and its shareholders ratified, the 2015 Incentive Stock Plan (“2015 Stock Plan”). The 2015 Stock Plan provides for the grant of awards to officers, employees, directors or consultants to the Company to purchase up to an aggregate of 1,500,000 shares of common stock. In April 2016, the Company awarded one employee director 67,901 shares of its common stock and another employee director 31,250 shares of its common stock from the 2015 Incentive Stock Plan as part of their 2015 bonus. The Company recorded a cost of $74,363 relating to the issuance of these shares. Stock Compensation In March 2015, the Company awarded one employee director 48,530 shares of its common stock and another employee director 29,780 shares of its common stock as part of their 2014 bonus. The Company recorded a cost of $57,166 relating to the issuance of these shares. In February 2015, one non-employee director exercised an option to acquire 25,000 shares of common stock for $0.25 per share. In April 2015, two employee directors each exercised options to acquire 250,000 shares for $0.25 per share. Also in April 2015, two non-employee directors each exercised options to acquire 25,000 shares of common stock for $0.25 per share. In July 2015, the Company granted stock options to (a) three non-employee directors to each purchase 25,000 shares of common stock, and (b) one non-employee-director to purchase 50,000 shares of common stock, at an exercise price of $.87 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 $19,913 related to the granting of these options. The fair value of these stock options are estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: expected volatility of 17% (based on the Company’s historical stock volatility); average risk-free interest rate of 1.55% (the five year treasury note rate on the date of the grant); initial expected life of 5 years (based on the term of the options) and no expected dividend yield. In April 2016, the Company awarded one employee director 67,901 shares of its common stock and another employee director 31,250 shares of its common stock from the 2015 Incentive Stock Plan as part of their 2015 bonus. The Company recorded a cost of $74,363 relating to the issuance of these shares. The intrinsic value of the exercisable options at May 31, 2016 totaled $12,000. At May 31, 2016, the weighted average remaining life of the stock options is 2.19 years. At May 31, 2016, there was no unrecognized compensation cost related to the stock options granted under the Company’s incentive plans. [4] Authorized Repurchase In November 2015, the Board of Directors authorized the Company to purchase up to $500,000 of common stock in the open market or in privately negotiated transactions. Pursuant to such authority and pursuant to Rule 10b-18 under the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of May 31, 2016 a total of 2,823 shares have been repurchased. [5] Compensation of Directors In February 2015, one non-employee director exercised an option and acquired 25,000 shares of common stock for $0.25 per share. In April 2015, two non-employee directors exercised options and acquired 25,000 shares each of common stock for $0.25 per share. In July 2015, options were granted to three non-employee directors each to purchase 25,000 shares of common stock and one non-employee director to purchase 50,000 shares of common stock at an exercise price of $0.87 per share.

Income Taxes

Income Taxes	6 Months Ended
	May 31, 2016
Income Taxes [Abstract]
INCOME TAXES	NOTE G – 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: May 31, November 30, 2016 2015 Deferred Tax Assets Net operating loss $ 4,103,641 $ 4,095,388 Allowance for bad debts 44,286 39,296 Inventory 62,409 100,017 Deferred Rent 16,474 16,756 Depreciation 154,941 156,272 Total deferred tax assets 4,381,751 4,407,729 Valuation allowance (3,369,779 ) (3,409,599 ) Deferred Tax Assets $ 1,011,972 $ 998,130 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 approximately $40,000 during the six months ended May 31, 2016. 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: Six Months Ended May 31, May 31, Current: Federal $ -- $ 4,627 States 27,362 4,574 27,362 9,201 Deferred: Federal (10,935 ) 106,724 States (2,907 ) 24,258 (13,842 ) 130,982 Provision for income taxes $ 13,520 $ 140,183 The Company files a consolidated income tax return with its wholly-owned subsidiaries and has net operating loss carryforwards of approximately $10,202,000 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: Six Months Ended May 31, May 31, 2016 2015 U.S Federal Income tax statutory rate * 34 % Valuation allowance * 14 % State income taxes * 5 % Other - - Effective tax rate * 25 % * Due to the amount of the net income (loss), the presentation of the reconciliation of the effective rate is not meaningful.

Rental Commitments

Rental Commitments	6 Months Ended
	May 31, 2016
Rental Commitments [Abstract]
RENTAL COMMITMENTS	NOTE H– RENTAL COMMITMENTS The Company leases its office and warehouse space through 2020 from a corporation that is controlled by officers/shareholders of the Company (“Related Company”). Annual minimum rental payments to the Related Company approximated $169,000 for the year ended November 30, 2015, and increase at the rate of three 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 2015, 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 $58,500. The Company’s future minimum rental commitments at May 31, 2016 are as follows: Twelve Months Ended May 31, 2017 $ 236,247 2018 $ 186,213 2019 $ 184,968 2020 $ 62,061 $ 669,489 Net rental expense for the six months ended May 31, 2016 and May 31, 2015 were $155,269 and $151,254, respectively, of which $126,348 and $124,662, respectively, were paid to the Related Company.

Employment and Other Agreements

Employment and Other Agreements	6 Months Ended
	May 31, 2016
Employment and Other Agreements [Abstract]
EMPLOYMENT AND OTHER AGREEMENTS	NOTE I – 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 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 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 any and 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 officer 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	6 Months Ended
	May 31, 2016
Major Customers [Abstract]
MAJOR CUSTOMERS	NOTE J– MAJOR CUSTOMERS The Company had two customers who accounted for 12% and 13% of net sales for the six months ended May 31, 2016 and one customer who accounted for 27% of net sales for the six months ended May 31, 2015. The Company had no customers who accounted for 10% of accounts receivable at May 31, 2016 and one customer who accounted for 10% of accounts receivable at November 30, 2015.

Major Suppliers

Major Suppliers	6 Months Ended
	May 31, 2016
Major Suppliers [Abstract]
MAJOR SUPPLIERS	NOTE K- MAJOR SUPPLIERS During the six months ended May 31, 2016 and May 31, 2015 there was one foreign supplier accounting for 51% and 62% of total inventory purchased. The Company purchases substantially all of its products overseas. For the six months ended May 31, 2016, the Company purchased 54% of its products from Taiwan, 15% from Hong Kong, 29% 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	6 Months Ended
	May 31, 2016
Export Sales [Abstract]
EXPORT SALES	NOTE L - EXPORT SALES The Company’s export sales were as follows: Six Months Ended May 31, May 31, 2016 2015 Canada 2,140,443 1,493,805 China 2,783,371 2,414,607 Other Asian Countries 411,617 573,083 South America 150,220 215,084 Europe 216,839 590,768 Revenues are attributed to countries based on location of customer.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	May 31, 2016
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	(1) Principles of Consolidation 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 interim consolidated financial statements have been prepared without audit, in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission. The results and trends in these interim consolidated financial statements for the six months ended May 31, 2016 and May 31, 2015 may not be representative of those for the full fiscal year or any future periods.
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 accounts 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 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 its suppliers. The Company purchases the merchandise from the supplier and has the supplier directly ship the merchandise to the customer through a freight forwarder. Title passes to the customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $1,783,000 and $1,727,000 for the six months ended May 31, 2016 and May 31, 2015 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 $177,963 and $113,998 for the six months ended May 31, 2016 and May 31, 2015 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 $3,946,000 and $4,680,000 for the six months ended May 31, 2016 and May 31, 2015 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 market. 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 May 31, 2016 approximated $1,536,000. The Company, at May 31, 2016, has a reserve against slow moving and obsolete inventory of $313,000. 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 accounts receivable. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At May 31, 2016 and November 30, 2015, the Company's uninsured cash balances totaled approximately $4,006,000 and $3,989,000, 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 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 G. 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, 2011, and state tax examinations for years before fiscal years ending November 30, 2010. 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 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 six months ended May 31, 2016 and May 31, 2015.
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 $3,465 and $4,926 for the six months ended May 31, 2016 and May 31, 2015 respectively.
Earnings Per Share	(13) Earnings Per Share Basic earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. 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. The Company had a net loss for the six and three months ended May 31, 2016 and accordingly, potential dilutive common shares have been excluded from this calculation as the effect would be anti-dilutive. The number of potentially dilutive shares excluded from diluted weighted shares outstanding at May 31, 2016 and May 31, 2015 totaled 635,438 and 390,130, 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.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	May 31, 2016
Summary of Significant 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)	6 Months Ended
	May 31, 2016
Fixed Assets [Abstract]
Schedule of fixed assets	May 31, November 30, 2016 2015 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 956,637 956,637 Computer Equipment 975,833 974,312 Less-Accumulated Depreciation (2,169,814 ) (2,154,182 ) Net Fixed Assets $ 90,627 $ 104,738

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	May 31, 2016
Accrued Expenses [Abstract]
Schedule of accrued expenses	May 31, November 30, 2016 2015 Commissions $ 231,271 $ 276,724 Preferred Stock Dividends 126,569 124,069 Other accrued expenses 184,251 171,694 $ 542,091 $ 572,487

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	May 31, 2016
Shareholders' Equity [Abstract]
Schedule of stock option incentive plan activity	Weighted Average Shares Exercise Options outstanding December 1, 2015 535,438 $ 0.85 Options issued in the six months ended May 31, 2016 - $ - Options exercised in the six months ended May 31, 2016 - $ - Options cancelled in the six months ended May 31, 2016 - $ - Options outstanding at May 31, 2016 535,438 $ 0.85 Options exercisable at May 31, 2016 535,438 $ .085

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	May 31, 2016
Income Taxes [Abstract]
Schedule of deferred income taxes	May 31, November 30, 2016 2015 Deferred Tax Assets Net operating loss $ 4,103,641 $ 4,095,388 Allowance for bad debts 44,286 39,296 Inventory 62,409 100,017 Deferred Rent 16,474 16,756 Depreciation 154,941 156,272 Total deferred tax assets 4,381,751 4,407,729 Valuation allowance (3,369,779 ) (3,409,599 ) Deferred Tax Assets $ 1,011,972 $ 998,130
Schedule of income tax expense	Six Months Ended May 31, May 31, Current: Federal $ -- $ 4,627 States 27,362 4,574 27,362 9,201 Deferred: Federal (10,935 ) 106,724 States (2,907 ) 24,258 (13,842 ) 130,982 Provision for income taxes $ 13,520 $ 140,183
Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate	Six Months Ended May 31, May 31, 2016 2015 U.S Federal Income tax statutory rate * 34 % Valuation allowance * 14 % State income taxes * 5 % Other - - Effective tax rate * 25 % * Due to the amount of the net income (loss), the presentation of the reconciliation of the effective rate is not meaningful.

Rental Commitments (Tables)

Rental Commitments (Tables)	6 Months Ended
	May 31, 2016
Rental Commitments [Abstract]
Schedule of future minimum rental commitments	Twelve Months Ended May 31, 2017 $ 236,247 2018 $ 186,213 2019 $ 184,968 2020 $ 62,061 $ 669,489

Export Sales (Tables)

Export Sales (Tables)	6 Months Ended
	May 31, 2016
Export Sales [Abstract]
Schedule of export sales	Six Months Ended May 31, May 31, 2016 2015 Canada 2,140,443 1,493,805 China 2,783,371 2,414,607 Other Asian Countries 411,617 573,083 South America 150,220 215,084 Europe 216,839 590,768

Organization, Description of 26

Organization, Description of Company's Business and Basis of Presentation (Details)	1 Months Ended
	May 31, 2002Shareholdershares	May 31, 2016shares	Nov. 30, 2015shares
Organization, Description of Company's Business and Basis of Presentation (Textual)
Minimum number of shareholders to hold equity | Shareholder	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
Common stock, shares authorized		75,000,000	75,000,000

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details)	6 Months Ended
	May 31, 2016
Furniture, fixtures and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, useful life	7 years
Furniture, fixtures and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, useful life	5 years
Computer equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, useful life	5 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	Estimated useful life or lease term, whichever is shorter

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details Textual) - USD ($)	6 Months Ended
	May 31, 2016	May 31, 2015	Nov. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Direct shipments revenue	$ 1,783,000	$ 1,727,000
Commission revenue	177,963	113,998
Revenues from distribution agreements	3,946,000	4,680,000
Inventory in transit from foreign suppliers	1,536,000
Reserve against slow moving and obsolete inventory	313,000
Amount of uninsured cash balances	4,006,000		$ 3,989,000
Shipping costs	$ 3,465	$ 4,926
Potentially dilutive shares excluded from diluted weighted shares outstanding (in shares)	635,438	390,130

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	May 31, 2016	Nov. 30, 2015
Property, Plant and Equipment [Line Items]
Less-Accumulated Depreciation	$ (2,169,814)	$ (2,154,182)
Net Fixed Assets	90,627	104,738
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	956,637	956,637
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Fixed assets gross	$ 975,833	$ 974,312

Fixed Assets (Details Textual)

Fixed Assets (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
Fixed Assets [Abstract]
Depreciation and amortization expense	$ 7,816	$ 8,957	$ 15,632	$ 17,480

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	May 31, 2016	Nov. 30, 2015
Accrued Expenses [Abstract]
Commissions	$ 231,271	$ 276,724
Preferred Stock Dividends	126,569	124,069
Other accrued expenses	184,251	171,694
Accrued expenses, Total	$ 542,091	$ 572,487

Retirement Plan (Details)

Retirement Plan (Details) - USD ($)	1 Months Ended	6 Months Ended
	Jun. 30, 1997	May 31, 2016	May 31, 2015	Nov. 30, 2015
Retirement Plan (Textual)
Number of completed age for qualification of retirement plan	21 years
Number of completed years of service for qualification of retirement plan	12 months
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				$ 1,092,000
Pension expense		$ 1,193	$ 1,613

Shareholders' Equity (Details)

Shareholders' Equity (Details) - 2010 Incentive Stock Plan [Member] - Stock options [Member]	6 Months Ended
	May 31, 2016$ / sharesshares
Shares
Options outstanding December 1, 2015 | shares	535,438
Options issued in the six months ended May 31, 2016 | shares
Options exercised in the six months ended May 31, 2016 | shares
Options cancelled in the six months ended May 31, 2016 | shares
Options outstanding at May 31, 2016 | shares	535,438
Options exercisable at May 31, 2016 | shares	535,438
Weighted Average Exercise Price
Options outstanding December 1, 2015 | $ / shares	$ 0.85
Options issued in the six months ended May 31, 2016 | $ / shares
Options exercised in the six months ended May 31, 2016 | $ / shares
Options cancelled in the six months ended May 31, 2016 | $ / shares
Options outstanding at May 31, 2016 | $ / shares	0.85
Options exercisable at May 31, 2016 | $ / shares	$ 0.85

Shareholders' Equity (Details T

Shareholders' Equity (Details Textual) - USD ($)	Mar. 14, 2011	Jul. 31, 2015	Apr. 30, 2015	Oct. 31, 2014	Feb. 28, 2006	Apr. 30, 2002	Apr. 30, 2001	Nov. 30, 2000	May 31, 2016	Nov. 30, 2015	Aug. 31, 2010	Dec. 31, 2001	Jan. 31, 2000	Feb. 29, 1996
Shareholders' Equity (Textual)
Preferred stock, shares authorized									5,000,000	5,000,000	5,000,000			1,000,000
Dividend payable												$ 126,569
Amount paid for repurchase under standstill and non disparagement agreement						$ 225,000
Common Stock [Member]
Shareholders' Equity (Textual)
Stock repurchased and cancelled						252,000
Non-Voting Redeemable Convertible Series A Preferred Stock ("Series A Preferred") [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized									260,000	260,000			260,000
Preferred stock, shares outstanding
Voting Redeemable Convertible Series B Preferred Stock ("Series B Preferred") [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized								200,000	200,000	200,000
Preferred stock, shares outstanding
Non-Voting Redeemable Convertible Series C Preferred Stock ("Series C Preferred") [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized								100,000	100,000	100,000
Preferred stock, shares outstanding									10,000	10,000
Preferred stock, shares issued									10,000	10,000
Number of shares converted into common stock upon conversion		42,000		2,000				10
Cumulative dividend per share per annum								$ 0.50
Preferred stock issued in payment of financial consulting services								70,000
Stock repurchased and cancelled						19,300	8,000
Number of shares repurchased during the period					10,000
Accrued dividends		$ 29,838	$ 65,000		$ 50,000
Number of preferred stock returned for cancellation in exchange for shares of common stock	9,000		7,500
Number of common shares issued in conversion of preferred stock	112,500		110,000	20,000
Non-Voting Redeemable Convertible Series C Preferred Stock ("Series C Preferred") [Member] | Common Stock [Member]
Shareholders' Equity (Textual)
Number of shares converted into common stock upon conversion		4,200

Shareholders' Equity (Details35

Shareholders' Equity (Details Textual 1) - USD ($)	Apr. 30, 2015	Mar. 31, 2015	Apr. 30, 2016	Jul. 31, 2015	Feb. 28, 2015	Mar. 31, 2010	May 31, 2016	Nov. 30, 2015
Stock options [Member]
Shareholders' Equity (Textual)
Company recorded a cost							$ 12,000
Weighted average remaining life							2 years 2 months 9 days
Payments of stock issuance costs shares							$ 74,363
Stock options [Member] | Non Employee Director [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted	25,000
Number of options granted for common stock					25,000
Number of options granted for common stock, exercise price per share	$ 0.25				$ 0.25
Company recorded a cost		$ 57,166
Stock options [Member] | Employee-director One [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted	25,000
Number of options granted for common stock				50,000
Number of options granted for common stock, exercise price per share	$ 0.25			$ 0.87
Vesting period				5 years
Fair values of stock options assumption method used				Black-Scholes option pricing model
Expected volatility rate				17.00%
Average risk-free interest rate				1.55%
Treasury note, maturity				5 years
Initial expected life				5 years
Options granted cost				$ 19,913
Stock options [Member] | Employee-director [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted		48,530
Stock options [Member] | Another Employee Director [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted		29,780
Stock options [Member] | Employee Director Two [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted	250,000
Number of options granted for common stock, exercise price per share	$ 0.25
Stock options [Member] | Three non-employee directors [Member]
Shareholders' Equity (Textual)
Number of options granted for common stock				25,000
2010 Incentive Stock Plan [Member] | Stock options [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted						1,500,000
2015 Incentive Stock Plan [Member] | Employee-director One [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted			67,901
2015 Incentive Stock Plan [Member] | Another Employee Director [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted			31,250
2015 Incentive Stock Plan [Member] | Stock options [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted								1,500,000

Shareholders' Equity (Details36

Shareholders' Equity (Details Textual 2) - USD ($)	12 Months Ended
	Nov. 30, 2015	May 31, 2016
Shareholders' Equity (Textual)
Stock repurchased during period, Value	$ 500,000
Repurchase of common stock shares		2,823

Shareholders' Equity (Details37

Shareholders' Equity (Details Textual 3) - Stock options [Member] - $ / shares	1 Months Ended
	Jul. 31, 2015	Apr. 30, 2015	Feb. 28, 2015
Non-employee directors [Member]
Shareholders' Equity (Textual)
Number of options granted for common stock	50,000	25,000	25,000
Number of options granted for common stock, exercise price per share	$ 0.87	$ 0.25	$ 0.25
Three non-employee directors [Member]
Shareholders' Equity (Textual)
Number of options granted for common stock	25,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	May 31, 2016	Nov. 30, 2015
Deferred Tax Assets
Net operating loss	$ 4,103,641	$ 4,095,388
Allowance for bad debts	44,286	39,296
Inventory	62,409	100,017
Deferred Rent	16,474	16,756
Depreciation	154,941	156,272
Total deferred tax assets	4,381,751	4,407,729
Valuation allowance	(3,369,779)	(3,409,599)
Deferred Tax Assets	$ 1,011,972	$ 998,130

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
Current:
Federal				$ 4,627
States			27,362	4,574
Current, total			27,362	9,201
Deferred:
Federal			(10,935)	106,724
States			(2,907)	24,258
Deferred, total			(13,842)	130,982
Provision for income taxes	$ (16,782)	$ 56,358	$ 13,520	$ 140,183

Income Taxes (Details 2)

Income Taxes (Details 2)	6 Months Ended
	May 31, 2016		May 31, 2015
Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate
U.S Federal Income tax statutory rate		[1]	34.00%
Valuation allowance		[1]	14.00%
State income taxes		[1]	5.00%
Other
Effective tax rate		[1]	25.00%
[1]	Due to the amount of the net income (loss), the presentation of the reconciliation of the effective rate is not meaningful.

Income Taxes (Details Textual)

Income Taxes (Details Textual)	6 Months Ended
	May 31, 2016USD ($)
Income Taxes (Textual)
Decrease in valuation allowance for deferred tax asset	$ 40,000
Net operating loss carryforwards	$ 10,202,000
Net operating loss carryforwards, expiration date	Nov. 30, 2020

Rental Commitments (Details)

Rental Commitments (Details)	May 31, 2016USD ($)
Schedule of future minimum rental commitments
2,017	$ 236,247
2,018	186,213
2,019	184,968
2,020	62,061
Future minimum rental commitments	$ 669,489

Rental Commitments (Details Tex

Rental Commitments (Details Textual) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2015	May 31, 2016	May 31, 2015	Nov. 30, 2015
Rental Commitments (Textual)
Lease expiration period		Nov. 30, 2020
Net rental expense		$ 155,269	$ 151,254
Related Company
Rental Commitments (Textual)
Annual minimum rental payments				$ 169,000
Percentage of increase in rental payment				3.00%
Net rental expense		$ 126,348	$ 124,662
Related Company | Hong Kong [Member]
Rental Commitments (Textual)
Annual minimum rental payments	$ 58,500
Term of lease	2 years

Employment and Other Agreemen44

Employment and Other Agreements (Details)	1 Months Ended
	Feb. 29, 2016USD ($)Officer
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of officers involved in employment agreements | Officer	2
Period officer prohibited involving in competitive activities during employment	One year following termination
Compensation description	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.
Officer [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Base salary of each officer	$ 275,000
Officer One [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Base salary of each officer	$ 225,000

Major Customers (Details)

Major Customers (Details) - Customers	1 Months Ended	6 Months Ended
	Nov. 30, 2015	May 31, 2016	May 31, 2015
Sales revenue
Major Customers (Textual)
Number of customers			1
Percentage of concentration			27.00%
Sales revenue | Customer One [Member]
Major Customers (Textual)
Number of customers		2
Percentage of concentration		12.00%
Sales revenue | Customer Two [Member]
Major Customers (Textual)
Number of customers		2
Percentage of concentration		13.00%
Accounts receivable
Major Customers (Textual)
Number of customers	1
Percentage of concentration	10.00%	10.00%

Major Suppliers (Details)

Major Suppliers (Details) - Supplier concentration risk [Member] - Total Inventory Purchased [Member] - Supplier	6 Months Ended
	May 31, 2016	May 31, 2015
Foreign supplier [Member]
Concentration Risk [Line Items]
Portion of overseas products	51.00%	62.00%
Number of supplier	1	1
Taiwan [Member]
Concentration Risk [Line Items]
Portion of overseas products	54.00%
Hong Kong [Member]
Concentration Risk [Line Items]
Portion of overseas products	15.00%
Elsewhere in Asia [Member]
Concentration Risk [Line Items]
Portion of overseas products	29.00%
Overseas outside of Asia [Member]
Concentration Risk [Line Items]
Portion of overseas products	Less than 1

Export Sales (Details)

Export Sales (Details) - USD ($)	6 Months Ended
	May 31, 2016	May 31, 2015
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	$ 2,140,443	$ 1,493,805
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	2,783,371	2,414,607
Other Asian Countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	411,617	573,083
South America
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	150,220	215,084
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	$ 216,839	$ 590,768