Surge Components (SPRS) 10-Q 9 Oct 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Aug. 31, 2018	Oct. 05, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	SURGE COMPONENTS INC
Entity Central Index Key	747,540
Amendment Flag	false
Trading Symbol	SPRS
Current Fiscal Year End Date	--11-30
Document Type	10-Q
Document Period End Date	Aug. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		5,224,431

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Aug. 31, 2018	Nov. 30, 2017
Current assets:
Cash	$ 821,275	$ 1,086,999
Accounts receivable - net of allowance for doubtful accounts of $161,560	6,765,972	5,933,268
Inventory, net	3,216,566	3,161,587
Prepaid expenses and income taxes	107,359	158,869
Total current assets	10,911,172	10,340,723
Fixed assets - net of accumulated depreciation and amortization of $2,254,384 and $2,217,654	128,237	138,329
Deferred income taxes	969,834	982,880
Other assets	13,384	13,384
Total assets	12,022,627	11,475,316
Current liabilities:
Accounts payable	4,947,779	4,629,932
Loan Payable	200,000	500,000
Capital Lease Payable, Current maturities	6,325	6,411
Accrued expenses and taxes	1,019,432	937,249
Accrued salaries	544,364	621,930
Total current liabilities	6,717,900	6,695,522
Capital lease payable, net of current maturities	27,321	32,536
Deferred rent	28,242	34,518
Total liabilities	6,773,463	6,762,576
Commitments and contingencies
Shareholders' equity:
Common stock - $.001 par value, 75,000,000 shares authorized, 5,224,431 and 5,224,431 shares issued and outstanding	5,224	5,224
Additional paid-in capital	16,557,310	16,557,310
Accumulated deficit	(11,313,380)	(11,849,804)
Total shareholders' equity	5,249,164	4,712,740
Total liabilities and shareholders' equity	12,022,627	11,475,316
Series A Preferred Stock
Shareholders' equity:
Preferred stock value
Series B Preferred Stock
Shareholders' equity:
Preferred stock value
Series C Preferred Stock
Shareholders' equity:
Preferred stock value	10	10
Series D Preferred Stock
Shareholders' equity:
Preferred stock value

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Aug. 31, 2018	Nov. 30, 2017
Allowance for doubtful accounts of accounts receivable	$ 161,560	$ 161,560
Accumulated depreciation and amortization on fixed assets	$ 2,254,384	$ 2,217,654
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	5,224,431	5,224,431
Common stock, shares outstanding	5,224,431	5,224,431
Series A Preferred Stock [Member]
Preferred stock, shares authorized	260,000	260,000
Preferred stock, shares outstanding
Series B Preferred Stock [Member]
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares outstanding
Series C Preferred Stock [Member]
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	$ 5	$ 5
Series D Preferred Stock [Member]
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, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Income Statement [Abstract]
Net sales	$ 9,281,710	$ 8,695,624	$ 23,526,135	$ 21,793,936
Cost of goods sold	7,174,307	6,445,861	17,684,971	16,341,339
Gross profit	2,107,403	2,249,763	5,841,164	5,452,597
Operating expenses:
Selling and shipping expenses	705,638	671,802	1,961,477	1,892,777
General and administrative expenses	1,021,560	1,020,208	3,214,725	3,565,066
Depreciation and amortization	12,244	7,882	36,730	23,647
Total operating expenses	1,739,442	1,699,892	5,212,932	5,481,490
Income (loss) before other income (expense) and income taxes	367,961	549,871	628,232	(28,893)
Other income (expense):
Investment income	1	1	3	3,106
Interest expense	(3,596)	(9,242)	(13,330)	(16,056)
Other income (expense)	(3,595)	(9,241)	(13,327)	(12,950)
Income (loss) before income taxes	364,366	540,630	614,905	(41,843)
Income taxes (benefit)	26,808	125,727	73,481	(3,241)
Net income (loss)	337,558	414,903	541,424	(38,602)
Dividends on preferred stock	2,500	2,500	5,000	5,000
Net income (loss) available to common shareholders	$ 335,058	$ 412,403	$ 536,424	$ (43,602)
Net income (loss) per share available to common shareholders:
Basic	$ 0.06	$ 0.08	$ 0.10	$ (.01)
Diluted	$ 0.06	$ 0.08	$ 0.10	$ (.01)
Weighted Shares Outstanding:
Basic	5,224,431	5,224,431	5,224,431	7,323,511
Diluted	5,362,058	5,383,029	5,362,058	7,323,511

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss)	$ 541,424	$ (38,602)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	36,730	23,647
Deferred income taxes	13,046	(17,477)
Allowance for doubtful accounts		919
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable	(832,704)	(485,492)
Inventory	(54,979)	115,988
Prepaid expenses and income taxes	51,510	(20,345)
Accounts payable	317,847	1,894,418
Deferred rent	(6,276)	(3,644)
Accrued expenses	(383)	(487,788)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	66,215	981,624
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets	(31,939)	(14,858)
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(31,939)	(14,858)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings from loan payable	(300,000)	600,000
Repurchase of Common Stock in Tender Offer		(7,150,000)
NET CASH FLOWS USED IN FINANCING ACTIVITIES	(300,000)	(6,550,000)
NET CHANGE IN CASH	(265,724)	(5,583,234)
CASH AT BEGINNING OF PERIOD	1,086,999	7,120,601
CASH AT END OF PERIOD	821,275	1,537,367
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	15,100	14,875
Interest paid	13,330	16,056
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, 2018
Organization, Consolidation and Presentation of Financial Statements [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	9 Months Ended
	Aug. 31, 2018
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 and the rules and regulations of the Securities and Exchange Commission. The results and trends in these interim consolidated financial statements for the nine months ended August 31, 2018 and August 31, 2017 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 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. Adoption of this ASU did not have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. Revenue is recognized at the point at which control of the underlying goods or services are transferred to the customer, which included determining whether goods and services are distinct and separate performance obligations, which may require significant judgment. Satisfaction of the Company’s performance obligations occur upon the transfer of control of goods or services, either from the Company’s facilities or directly from suppliers to customers. The Company considers customer purchase orders, which in some cases are governed by master agreements, to be the contracts with a customer. Substantially all revenue is generated from contracts with customers. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to receive. The amount of consideration received and revenue recognized by the Company vary due to contractually defined incentives and return rights that are held by customers. These adjustments are made in the same period as the underlying transactions. 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 $3,434,000 and $2,825,000 for the nine months ended August 31, 2018 and August 31, 2017, 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 they are earned. Commission revenue totaled $31,968 and $161,760 for the nine months ended August 31, 2018 and August 31, 2017, 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 $4,333,000 and $3,741,000 for the nine months ended August 31, 2018 and August 31, 2017, 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 August 31, 2018 was $1,050,173. The Company, at August 31, 2018, has a reserve against slow moving and obsolete inventory of $296,603. 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 August 31, 2018 and November 30, 2017, the Company’s uninsured cash balances totaled $362,574 and $522,504, 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 J. As of December 1, 2017, the Company adopted ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes”. Pursuant to the ASU, all deferred taxes are reported as non-current assets or liabilities. The Company has applied the ASU on a retrospective basis. The effect of the change for the period ended November 30, 2017 was to decrease current assets by $327,627 and increase non-current assets by $327,627. The Company follows the provisions of the Accounting Standards Codification (“ASC”) topic 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 year ended November 30, 2014, and state tax examinations for years before fiscal year ended November 30, 2013. Management does not believe there will be any material changes in the Company’s 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 nine months ended August 31, 2018 and August 31, 2017. (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 $5,928 and $8,070 for the nine months ended August 31, 2018 and August 31, 2017, respectively. (13) Income Per Share Basic income (loss) 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. Total potentially dilutive shares excluded from diluted weighted shares outstanding at August 31, 2018 and August 31, 2017 totaled 212,373 and 402,000, respectively. (14) Stock Based Compensation Stock Based Compensation to Employees The Company accounts for its stock-based compensation for employees in accordance with ASC 718. The Company recognizes in its consolidated statements 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) Recently Issued Standards In February 2016, FASB issued ASU No. 2016-02, “Leases.” This ASU requires all lessees to be recognized on the balance sheet as right to use assets and lease liabilities for the rights and obligations created by lease arrangements with terms greater than 12 months. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and for interim periods therein. The Company is in the process of assessing the impact the adoption of this ASU will have on its consolidated financial position, results of operations and cash flows. At a minimum, total assets and total liabilities will increase in the period the ASU is adopted. Early adoption of this ASU is permitted. At August 31, 2018, the Company’s undiscounted future minimum payments outstanding for lease obligations (including those currently included as capital lease obligations) were approximately $425,194.

Fixed Assets

Fixed Assets	9 Months Ended
	Aug. 31, 2018
Property, Plant and Equipment [Abstract]
FIXED ASSETS	NOTE C – FIXED ASSETS Fixed assets consist of the following: August 31, November 30, 2018 2017 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 991,646 987,137 Computer Equipment 1,063,004 1,040,875 Less-Accumulated Depreciation (2,254,384 ) (2,217,654 ) Net Fixed Assets $ 128,237 $ 138,329 Depreciation and amortization expense for the nine months ended August 31, 2018 and August 31, 2017 was $36,730 and $23,647, respectively.

Capitalized Lease Obligations

Capitalized Lease Obligations	9 Months Ended
	Aug. 31, 2018
Leases [Abstract]
CAPITALIZED LEASE OBLIGATIONS	NOTE D – CAPITALIZED LEASE OBLIGATIONS The Company is obligated under capitalized leases for telephone equipment. The Company leases equipment under two capital lease arrangements. 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% per annum. The leases terminate in 2022. Future minimum lease payments under these capitalized lease obligations as of August 31, 2018 are as follows: 2019 $ 9,779 2020 $ 9,779 2021 $ 9,779 2022 $ 9,779 2023 $ 2,447 Total $ 41,563 Less: interest portion 7,917 Present value of net minimum lease payments $ 33,646 Less: current portion 6,325 Non-current portion $ 27,321 Capital lease obligations mature as follows: Twelve months ending August 31: 2019 $ 6,325 2020 $ 7,544 2021 $ 8,280 2022 $ 9,088 2023 $ 2,409 Principal payments remaining $ 33,646

Line of Credit

Line of Credit	9 Months Ended
	Aug. 31, 2018
Line of Credit Facility [Abstract]
LINE OF CREDIT	NOTE E – LINE OF CREDIT 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). As of August 31, 2018, the balance on the Credit Line was $200,000. As of August 31, 2018, the Company was in compliance with the covenant for the debt service coverage ratio for the Credit Line.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Aug. 31, 2018
Payables and Accruals [Abstract]
ACCRUED EXPENSES	NOTE F – ACCRUED EXPENSES Accrued expenses consist of the following: August 31, November 30, 2018 2017 Commissions $ 227,818 $ 186,282 Preferred Stock Dividends 141,569 136,569 Other accrued expenses 203,454 158,928 Accrued Professional Fees 446,591 455,470 $ 1,019,432 $ 937,249

Retirement Plan

Retirement Plan	9 Months Ended
	Aug. 31, 2018
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 $1,432,000 at November 30, 2017. Pension expense for the nine months ended August 31, 2018 and August 31, 2017 was $1,782 and $773, respectively.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Aug. 31, 2018
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 January 2000, the Company authorized 260,000 shares of preferred stock as Non-Voting Redeemable Convertible Series A Preferred Stock (“Series A Preferred”). None of the Series A preferred stock is outstanding as of August 31, 2018. In November 2000, the Company authorized 200,000 shares of preferred stock as Voting Redeemable Convertible Series B Preferred Stock (“Series B Preferred”). None of the Series B Preferred Stock is outstanding as of August 31, 2018. 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 $141,569 have not been paid for the semi-annual periods ended December 31, 2001 through the semi-annual payment due June 30, 2018. The Company has accrued these dividends. At August 31, 2018, 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, 2018. [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 year ended August 31, 2018 is summarized as follows: Weighted Average Shares Exercise Options outstanding December 1, 2017 250,000 $ 0.94 Options issued in the nine months ended August 31, 2018 - $ - Options exercised in the nine months ended August 31, 2018 - $ - Options cancelled in the nine months ended August 31, 2018 - $ - Options outstanding at August 31, 2018 250,000 $ 0.94 Options exercisable at August 31, 2018 250,000 $ 0.94 [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 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 under the 2015 Stock Plan as part of their 2015 bonus. The Company recorded a cost of $74,363 relating to the issuance of these shares. In October 2016 one employee director exercised options to acquire 50,000 shares of common stock at $0.82 per share and 62,500 shares of common stock at $0.80 per share. In October 2016, one employee director exercised options to acquire 25,000 shares of common stock at $0.82 per share and 45,938 shares of common stock at $0.80 per share. The intrinsic value of the exercisable options at August 31, 2018 totaled $37,000. At August 31, 2018, the weighted average remaining life of the stock options is 1.56 years. At August 31, 2018, there was no unrecognized compensation cost related to the stock options granted under the plan. [4] Authorized Repurchase of Shares 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”), a total of 57,283 shares were repurchased by the Company for approximately $48,300. In January 2017, the Company terminated its repurchase program. In March 2017, the Company completed a tender offer whereby it purchased for cash 5,000,000 shares of its common stock, at a price of $1.43 per share, or $7,150,000. [5] 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).

Settlement Agreement

Settlement Agreement	9 Months Ended
	Aug. 31, 2018
Settlement Agreement [Abstract]
SETTLEMENT AGREEMENT	NOTE I – SETTLEMENT AGREEMENT On or about October 31, 2016, Michael D. Tofias and Bradley P. Rexroad (collectively, the “Stockholders”) filed a Complaint and Motion for Preliminary Injunction against the Company in the eighth Judicial District Court, Clark County, Nevada, Case No. A-16-745890-B, seeking relief including, inter alia, immediate inspection of certain books and records and a 60-day postponement of the scheduled annual meeting of stockholders (“Annual Meeting”). On November 16, 2016, after the Company postponed the Annual Meeting and provided certain books and records to the Stockholders, the Stockholders filed an Amended Complaint, which named all members of the Board as defendants and alleged that the directors had breached their fiduciary duty to the Stockholders. On December 1, 2016, following a hearing, the Court denied the request for a preliminary injunction. On December 22, 2016, the Company entered into a settlement agreement (the “Settlement Agreement”) with the Stockholders. The Settlement Agreement provides that: ● the Stockholders irrevocably withdraw their director nominations for the Board and stockholder proposals for the Company’s annual meeting of stockholders for fiscal year 2015 (the “Meeting”); ● the Stockholders will vote all of their shares of common stock of the Company in accordance with the Board’s recommendations with respect to the election of the Board’s director nominees, the ratification of the Company’s independent registered public accounting firm for the fiscal year ending November 30, 2016 (the “2017 Meeting”) and the ratification of the Company’s rights plan; ● the Company will hold the Meeting on January 5, 2017 and will hold its annual meeting of stockholders for fiscal year 2016 by December 29, 2017; ● the Board and the Stockholders will identify a mutually acceptable independent director to join the Board as a Class C director by February 28, 2017 and the Board will include that new director among its director nominees for the 2017 Meeting; ● the Company will not make any stock or option grants or grant any other non-cash compensation to its current officers and directors until December 23, 2017; ● the Company will take all steps to (i) change its state of incorporation from the State of Nevada to the State of Delaware and (ii) declassify the Board on a rolling basis by June 30, 2017, and the Company will convene a special meeting of stockholders of the Company for the purpose of approving such actions, at which meeting the Stockholders and the Insiders will vote all of their shares of common stock of the Company in favor of such actions; ● The Company will commence an issuer tender offer to all of its stockholders to repurchase at least 5,000,000 shares of its common stock at price of $1.43 per share (the “Tender Offer”), which Tender Offer will be completed by March 15, 2017. ● until the day after the announcement of the completion of the Tender Offer, the Board will be composed of no more than seven individuals; ● the Stockholders will tender all of the shares of common stock of the Company that they hold beneficially or of record in the Tender Offer, subject to limited exceptions; ● the Company’s officers and directors will not participate in the Tender Offer and will not transfer or sell any of their shares until six months after the Tender Offer is completed; ● subject to certain conditions, if the Tender Offer is not completed by March 15, 2017, the Company will (i) appoint the Stockholders to the Board as Class A directors with terms expiring at the Company’s annual meeting of stockholders for fiscal year 2018 (the “2019 Meeting”) and (ii) reduce the size of the Board to six directors, including the Stockholders; ● the Stockholders will withdraw with prejudice their lawsuit against the Company and the Insiders pending in the State of Nevada; and ● the Stockholders will be subject to customary standstill provisions until the termination of the Settlement Agreement. Pursuant to the Settlement Agreement, the Company also agreed to reimburse the expenses of the Stockholders associated with their investment in the Company, including their proxy solicitation and litigation costs, in an amount not to exceed $300,000. The Settlement Agreement terminates on the date that is 15 business days prior to the deadline for the submission of director nomination and stockholder proposals for the 2019 Meeting. In August 2018, several provisions of the Settlement Agreement were amended (the “Amendment”). Pursuant to the Amendment, the Company agreed to take all steps necessary to change its state of incorporation from the state of Nevada to the state of Delaware. During Fiscal 2018, the Company must submit to its shareholders a proposal to approve the reincorporation. If a specified number of shares seek to exercise their dissenters’ rights, the Board may withdraw the reincorporation proposal. If withdrawn, the Company must resubmit the proposal to approve the reincorporation during a meeting held in Fiscal 2019. If holders of a specified number of shares seek to exercise their dissenters’ rights, the Company’s board of directors may withdraw the reincorporation proposal. If withdrawn, the Company must resubmit the proposal to approve the reincorporation during a meeting held in Fiscal 2020. The Amendment extended the period for prohibition of any equity grants until the completion of reincorporation into Delaware. The Settlement Agreement terminates at the latter of the date that is 15 business days prior to the deadline for the submission of director nomination and stockholder proposals for the 2019 Meeting or the date that the Company completes the reincorporation into Delaware. On October 4, 2018, the Company held its annual meeting of shareholders, at which shareholders approved (i) the change in the Company’s state of incorporation from Nevada to Delaware and (ii) the declassification of the Company’s board of directors on a rolling basis. No shareholders exercised their dissenters’ rights in connection with the annual meeting and the Company expects to file the requisite documentation with the states of Nevada and Delaware to effectuate the reincorporation in the near future.

Income Taxes

Income Taxes	9 Months Ended
	Aug. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE J – 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, 2018 2017 Deferred Tax Assets Net operating loss $ 3,446,016 $ 4,053,847 Allowance for bad debts 49,909 49,909 Inventory 106,604 92,225 Deferred Rent 11,280 13,786 Depreciation 120,247 148,569 Total deferred tax assets 3,734,056 4,358,336 Valuation allowance (2,764,222 ) (3,375,456 ) Deferred Tax Assets $ 969,834 $ 982,880 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 $611,000 during the nine months ended August 31, 2018. 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. As a result of the Tax Costs and Jobs Act, the maximum federal tax rate was reduced to 21% and certain provisions to alternative minimum taxes were amended which affect the Company’s ability to utilize its net operating losses against future earnings. The effect of the decrease in the tax rate is to reduce the potential tax benefit by approximately 30%. The elimination of the alternative minimum tax will allow the Company to utilize more of its net operating losses in future years coupled with managements changes to the estimates for future taxable income substantially offset the reduction in the tax benefit for the change in tax rate. The Company’s income tax expense consists of the following: Nine Months Ended August 31, August 31, Current: Federal $ 17,488 $ 821 States 42,947 13,415 60,435 14,236 Deferred: Federal 9,394 (13,544 ) States 3,652 (3,933 ) 13,046 (17,477 ) Provision for income taxes $ 73,481 $ (3,241 ) The Company files a consolidated income tax return with its wholly-owned subsidiaries and has net operating loss carryforwards of approximately $8,615,000 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, 2018 2017 U.S Federal Income tax statutory rate 21 % (34 )% Valuation allowance (13 )% 30 % State income taxes 4 % (3 )% Other - - Effective tax rate 12 % (7 )%

Rental Commitments

Rental Commitments	9 Months Ended
	Aug. 31, 2018
Rental Commitments [Abstract]
RENTAL COMMITMENTS	NOTE K – 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 $176,000 for the year ended November 30, 2017, 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 and is currently in negotiations to renew the lease. Annual minimum rental payments for this space are approximately $58,500. The Company’s future minimum rental commitments at August 31, 2018 are as follows: Twelve Months Ended August 31, 2019 $ 182,236 2020 $ 185,880 2021 $ 15,515 $ 383,631 Net rental expense for the nine months ended August 31, 2018 and August 31, 2017 were $237,196 and $235,334, respectively, of which $194,734 and $192,102 respectively, was paid to the Related Company.

Employment and Other Agreements

Employment and Other Agreements	9 Months Ended
	Aug. 31, 2018
Employment and Other Agreements [Abstract]
EMPLOYMENT AND OTHER AGREEMENTS	NOTE L – 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, 2018
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	NOTE M – MAJOR CUSTOMERS The Company had two customers who accounted for 10% and 13% of net sales for nine months ended August 31, 2018 and one customer who accounted for 13% of net sales for the nine months ended August 31, 2017. The Company had two customers who each accounted for 11 % of accounts receivable at August 31, 2018 and no customer accounted for 10% of accounts receivable at November 30, 2017.

Major Suppliers

Major Suppliers	9 Months Ended
	Aug. 31, 2018
Major Suppliers [Abstract]
MAJOR SUPPLIERS	NOTE N – MAJOR SUPPLIERS During the nine months ended August 31, 2018 and August 31, 2017 there was one foreign supplier accounting for 46% and 49% of total inventory purchased. The Company purchases substantially all of its products overseas. For the nine months ended August 31, 2018, the Company purchased 50% of its products from Taiwan, 17% 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	9 Months Ended
	Aug. 31, 2018
Segment Reporting [Abstract]
EXPORT SALES	NOTE O – EXPORT SALES The Company’s export sales were as follows: Nine Months Ended August 31, August 31, 2018 2017 Canada $ 3,033,031 $ 2,945,872 China $ 3,480,461 $ 3,506,149 Other Asian Countries $ 1,341,707 $ 1,391,537 South America $ 314,118 $ 300,130 Europe $ 756,985 $ 1,042,237 Revenues are attributed to countries based on location of customer.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Aug. 31, 2018
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 and the rules and regulations of the Securities and Exchange Commission. The results and trends in these interim consolidated financial statements for the nine months ended August 31, 2018 and August 31, 2017 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 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. Adoption of this ASU did not have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. Revenue is recognized at the point at which control of the underlying goods or services are transferred to the customer, which included determining whether goods and services are distinct and separate performance obligations, which may require significant judgment. Satisfaction of the Company’s performance obligations occur upon the transfer of control of goods or services, either from the Company’s facilities or directly from suppliers to customers. The Company considers customer purchase orders, which in some cases are governed by master agreements, to be the contracts with a customer. Substantially all revenue is generated from contracts with customers. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to receive. The amount of consideration received and revenue recognized by the Company vary due to contractually defined incentives and return rights that are held by customers. These adjustments are made in the same period as the underlying transactions. 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 $3,434,000 and $2,825,000 for the nine months ended August 31, 2018 and August 31, 2017, 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 they are earned. Commission revenue totaled $31,968 and $161,760 for the nine months ended August 31, 2018 and August 31, 2017, 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 $4,333,000 and $3,741,000 for the nine months ended August 31, 2018 and August 31, 2017, 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 August 31, 2018 was $1,050,173. The Company, at August 31, 2018, has a reserve against slow moving and obsolete inventory of $296,603. 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 August 31, 2018 and November 30, 2017, the Company’s uninsured cash balances totaled $362,574 and $522,504, 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 J. As of December 1, 2017, the Company adopted ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes”. Pursuant to the ASU, all deferred taxes are reported as non-current assets or liabilities. The Company has applied the ASU on a retrospective basis. The effect of the change for the period ended November 30, 2017 was to decrease current assets by $327,627 and increase non-current assets by $327,627. The Company follows the provisions of the Accounting Standards Codification (“ASC”) topic 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 year ended November 30, 2014, and state tax examinations for years before fiscal year ended November 30, 2013. Management does not believe there will be any material changes in the Company’s 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 nine months ended August 31, 2018 and August 31, 2017.
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 $5,928 and $8,070 for the nine months ended August 31, 2018 and August 31, 2017, respectively.
Income Per Share	(13) Income Per Share Basic income (loss) 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. Total potentially dilutive shares excluded from diluted weighted shares outstanding at August 31, 2018 and August 31, 2017 totaled 212,373 and 402,000, 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 ASC 718. The Company recognizes in its consolidated statements 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.
Recently Issued Standards	(15) Recently Issued Standards In February 2016, FASB issued ASU No. 2016-02, “Leases.” This ASU requires all lessees to be recognized on the balance sheet as right to use assets and lease liabilities for the rights and obligations created by lease arrangements with terms greater than 12 months. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and for interim periods therein. The Company is in the process of assessing the impact the adoption of this ASU will have on its consolidated financial position, results of operations and cash flows. At a minimum, total assets and total liabilities will increase in the period the ASU is adopted. Early adoption of this ASU is permitted. At August 31, 2018, the Company’s undiscounted future minimum payments outstanding for lease obligations (including those currently included as capital lease obligations) were approximately $425,194.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Aug. 31, 2018
Accounting Policies [Abstract]
Schedule of estimated useful life of fixed assets	<tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: justify; width: 40%"><font style="font: 10pt Times New Roman, Times, Serif">Furniture, fixtures and equipment</font></td> <td style="width: 60%"><font style="font: 10pt Times New Roman, Times, Serif">5 - 7 years</font></td></tr> <tr style="vertical-align: top; background-color: white"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Computer equipment</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">5 years</font></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><font style="font: 10pt Times New Roman, Times, Serif">Leasehold Improvements</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">Estimated useful life or lease term, whichever is shorter</font></td></tr> </table>" id="sjs-B4">&lt;table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> &lt;tr style="vertical-align: top; background-color: #CCEEFF"> &lt;td style="text-align: justify; width: 40%">&lt;font style="font: 10pt Times New Roman, Times, Serif">Furniture, fixtures and equipment&lt;/font>&lt;/td> &lt;td style="width: 60%">&lt;font style="font: 10pt Times New Roman, Times, Serif">5 - 7 years&lt;/font>&lt;/td>&lt;/tr> &lt;tr style="vertical-align: top; background-color: white"> &lt;td style="text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">Computer equipment&lt;/font>&lt;/td> &lt;td>&lt;font style="font: 10pt Times New Roman, Times, Serif">5 years&lt;/font>&lt;/td>&lt;/tr> &lt;tr style="vertical-align: top; background-color: #CCEEFF"> &lt;td>&lt;font style="font: 10pt Times New Roman, Times, Serif">Leasehold Improvements&lt;/font>&lt;/td> &lt;td>&lt;font style="font: 10pt Times New Roman, Times, Serif">Estimated useful life or lease term, whichever is shorter&lt;/font>&lt;/td>&lt;/tr> &lt;/table>

Fixed Assets (Tables)

Fixed Assets (Tables)	9 Months Ended
	Aug. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of fixed assets	August 31, November 30, 2018 2017 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 991,646 987,137 Computer Equipment 1,063,004 1,040,875 Less-Accumulated Depreciation (2,254,384 ) (2,217,654 ) Net Fixed Assets $ 128,237 $ 138,329

Capitalized Lease Obligations (

Capitalized Lease Obligations (Tables)	9 Months Ended
	Aug. 31, 2018
Leases [Abstract]
Schedule of future minimum lease payments under these capitalized lease obligations	2019 $ 9,779 2020 $ 9,779 2021 $ 9,779 2022 $ 9,779 2023 $ 2,447 Total $ 41,563 Less: interest portion 7,917 Present value of net minimum lease payments $ 33,646 Less: current portion 6,325 Non-current portion $ 27,321
Schedule of capital lease obligations mature	Twelve months ending August 31: 2019 $ 6,325 2020 $ 7,544 2021 $ 8,280 2022 $ 9,088 2023 $ 2,409 Principal payments remaining $ 33,646

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Aug. 31, 2018
Payables and Accruals [Abstract]
Schedule of accrued expenses	August 31, November 30, 2018 2017 Commissions $ 227,818 $ 186,282 Preferred Stock Dividends 141,569 136,569 Other accrued expenses 203,454 158,928 Accrued Professional Fees 446,591 455,470 $ 1,019,432 $ 937,249

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Aug. 31, 2018
Equity [Abstract]
Schedule of activity in the 2010 Stock Plan	Weighted Average Shares Exercise Options outstanding December 1, 2017 250,000 $ 0.94 Options issued in the nine months ended August 31, 2018 - $ - Options exercised in the nine months ended August 31, 2018 - $ - Options cancelled in the nine months ended August 31, 2018 - $ - Options outstanding at August 31, 2018 250,000 $ 0.94 Options exercisable at August 31, 2018 250,000 $ 0.94

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Aug. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of deferred income taxes	August 31, November 30, 2018 2017 Deferred Tax Assets Net operating loss $ 3,446,016 $ 4,053,847 Allowance for bad debts 49,909 49,909 Inventory 106,604 92,225 Deferred Rent 11,280 13,786 Depreciation 120,247 148,569 Total deferred tax assets 3,734,056 4,358,336 Valuation allowance (2,764,222 ) (3,375,456 ) Deferred Tax Assets $ 969,834 $ 982,880
Schedule of income tax expense	Nine Months Ended August 31, August 31, Current: Federal $ 17,488 $ 821 States 42,947 13,415 60,435 14,236 Deferred: Federal 9,394 (13,544 ) States 3,652 (3,933 ) 13,046 (17,477 ) Provision for income taxes $ 73,481 $ (3,241 )
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, 2018 2017 U.S Federal Income tax statutory rate 21 % (34 )% Valuation allowance (13 )% 30 % State income taxes 4 % (3 )% Other - - Effective tax rate 12 % (7 )%

Rental Commitments (Tables)

Rental Commitments (Tables)	9 Months Ended
	Aug. 31, 2018
Rental Commitments [Abstract]
Schedule of future minimum rental commitments	Twelve Months Ended August 31, 2019 $ 182,236 2020 $ 185,880 2021 $ 15,515 $ 383,631

Export Sales (Tables)

Export Sales (Tables)	9 Months Ended
	Aug. 31, 2018
Segment Reporting [Abstract]
Schedule of export sales	Nine Months Ended August 31, August 31, 2018 2017 Canada $ 3,033,031 $ 2,945,872 China $ 3,480,461 $ 3,506,149 Other Asian Countries $ 1,341,707 $ 1,391,537 South America $ 314,118 $ 300,130 Europe $ 756,985 $ 1,042,237

Organization, Description of _2

Organization, Description of Company's Business and Basis of Presentation (Details)	Aug. 31, 2010shares	May 31, 2002Shareholdershares
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
Increase in common stock shares authorized for issuance	75,000,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	9 Months Ended
	Aug. 31, 2018
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 Accoun_5

Summary of Significant Accounting Policies (Details Textual) - USD ($)	9 Months Ended		12 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Nov. 30, 2017
Summary of Significant Accounting Policies (Textual)
Direct shipments revenue	$ 3,434,000	$ 2,825,000
Commission revenue	31,968	161,760
Revenues from distribution agreements	4,333,000	3,741,000
Inventory in transit from foreign suppliers	1,050,173
Reserve against slow moving and obsolete inventory	296,603
Amount of uninsured cash balances	362,574		$ 522,504
Shipping costs	$ 5,928	$ 8,070
Diluted weighted shares outstanding	212,373	402,000
Capital lease obligations	$ 425,194
Decrease current assets			327,627
Increase non-current assets			$ 327,627

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	Aug. 31, 2018	Nov. 30, 2017
Schedule of fixed assets
Less-Accumulated Depreciation	$ (2,254,384)	$ (2,217,654)
Net Fixed Assets	128,237	138,329
Computer Equipment [Member]
Schedule of fixed assets
Fixed assets gross	1,063,004	1,040,875
Leasehold Improvements [Member]
Schedule of fixed assets
Fixed assets gross	991,646	987,137
Furniture and Fixtures [Member]
Schedule of fixed assets
Fixed assets gross	$ 327,971	$ 327,971

Fixed Assets (Details Textual)

Fixed Assets (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Fixed Assets (Textual)
Depreciation and amortization expense	$ 12,244	$ 7,882	$ 36,730	$ 23,647

Capitalized Lease Obligations_2

Capitalized Lease Obligations (Details) - USD ($)	Aug. 31, 2018	Nov. 30, 2017
Leases [Abstract]
2,019	$ 9,779
2,020	9,779
2,021	9,779
2,022	9,779
2,023	2,447
Total	41,563
Less: interest portion	7,917
Present value of net minimum lease payments	33,646
Less: current portion	6,325	$ 6,411
Non-current portion	$ 27,321	$ 32,536

Capitalized Lease Obligations_3

Capitalized Lease Obligations (Details 1)	Aug. 31, 2018USD ($)
Twelve months ending August 31:
2,019	$ 6,325
2,020	7,544
2,021	8,280
2,022	9,088
2,023	2,409
Principal payments remaining	$ 33,646

Capitalized Lease Obligations_4

Capitalized Lease Obligations (Details Textual)	9 Months Ended
	Aug. 31, 2018USD ($)leasearrangements
Capitalized Lease Obligations (Textual)
Leases equipment | leasearrangements	2
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.
Monthly payment | $	$ 815
Interest rates	9.342%
Leases terminate term	Nov 30, 2022

Line of Credit (Details)

Line of Credit (Details) - USD ($)	9 Months Ended
	Aug. 31, 2018	Feb. 28, 2017
Line of Credit (Textual)
Line of credit	$ 200,000	$ 3,000,000
Line of credit, interest rate, description	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).

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Aug. 31, 2018	Nov. 30, 2017
Schedule of accrued expenses
Commissions	$ 227,818	$ 186,282
Preferred Stock Dividends	141,569	136,569
Other accrued expenses	203,454	158,928
Accrued Professional Fees	446,591	455,470
Total Accrued expenses	$ 1,019,432	$ 937,249

Retirement Plan (Details)

Retirement Plan (Details) - USD ($)	1 Months Ended	9 Months Ended
	Jun. 30, 1997	Aug. 31, 2018	Aug. 31, 2017	Nov. 30, 2017
Retirement Plan (Textual)
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				$ 1,432,000
Pension expense		$ 1,782	$ 773

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Stock Options [Member] - 2010 Incentive Stock Plan [Member]	9 Months Ended
	Aug. 31, 2018$ / sharesshares
Shares
Options outstanding December 1, 2017 | shares	250,000
Options issued in the nine months ended August 31, 2018 | shares
Options exercised in the nine months ended August 31, 2018 | shares
Options cancelled in the nine months ended August 31, 2018 | shares
Options outstanding at August 31, 2018 | shares	250,000
Options exercisable at August 31, 2018 | shares	250,000
Weighted Average Exercise Price
Options outstanding December 1, 2017 | $ / shares	$ 0.94
Options issued in the nine months ended August 31, 2018 | $ / shares
Options exercised in the nine months ended August 31, 2018 | $ / shares
Options cancelled in the nine months ended August 31, 2018 | $ / shares
Options outstanding at August 31, 2018 | $ / shares	0.94
Options exercisable at August 31, 2018 | $ / shares	$ 0.94

Shareholders' Equity (Details T

Shareholders' Equity (Details Textual) - USD ($)	Mar. 14, 2011	Mar. 31, 2017	Jul. 31, 2015	Apr. 30, 2015	Oct. 31, 2014	Feb. 28, 2006	Apr. 30, 2002	Apr. 30, 2001	Nov. 30, 2000	Nov. 30, 2017	Nov. 30, 2016	Aug. 31, 2018	Oct. 31, 2016	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
Dividend payable															$ 141,569
Number of shares repurchased during the period		5,000,000
Common Stock [Member]
Shareholders' Equity (Textual)
Number of shares repurchased during the period										(5,000,000)	(57,283)
Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized														5,000,000			1,000,000
Series C Preferred Stock [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			4,200		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
Amount paid for repurchase under Standstill and Non-Disparagement Agreement							$ 225,000
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
Series C Preferred Stock [Member] | Common Stock [Member]
Shareholders' Equity (Textual)
Number of shares converted into common stock upon conversion			42,000
Stock repurchased and cancelled							252,000
Series D Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized										75,000		75,000	75,000
Preferred stock, shares outstanding
Preferred stock, shares issued
Series B Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized									200,000	200,000		200,000
Preferred stock, shares outstanding
Series A Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized										260,000		260,000				260,000
Preferred stock, shares outstanding

Shareholders' Equity (Details_2

Shareholders' Equity (Details Textual 1) - USD ($)	1 Months Ended				9 Months Ended	12 Months Ended
	Oct. 31, 2016	May 31, 2016	Apr. 30, 2016	Mar. 31, 2010	Aug. 31, 2018	Nov. 30, 2015
2015 Incentive Stock Plan [Member] | Officer [Member]
Shareholders' Equity (Textual)
Issuance of shares as compensation, shares		99,151
Employee Stock Option [Member]
Shareholders' Equity (Textual)
Recorded cost of shares					$ 37,000
Weighted average remaining life					1 year 6 months 21 days
Employee Stock Option [Member] | Another Employee Director [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted			31,250
Options granted cost			$ 74,363
Employee Stock Option [Member] | Employee Director [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted			67,901
Options granted cost			$ 74,363
Exercise of options, shares	50,000
Options exercised shares of common stock per share	$ 0.82
Employee Stock Option [Member] | One Employee Director Three [Member]
Shareholders' Equity (Textual)
Exercise of options, shares	45,938
Options exercised shares of common stock per share	$ 0.80
Employee Stock Option [Member] | One Employee Director Two [Member]
Shareholders' Equity (Textual)
Exercise of options, shares	25,000
Options exercised shares of common stock per share	$ 0.82
Employee Stock Option [Member] | One Employee Director One [Member]
Shareholders' Equity (Textual)
Exercise of options, shares	62,500
Options exercised shares of common stock per share	$ 0.80
Employee Stock Option [Member] | 2015 Incentive Stock Plan [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted						1,500,000
Employee Stock Option [Member] | 2010 Incentive Stock Plan [Member]
Shareholders' Equity (Textual)
Number of common shares purchased for options granted				1,500,000
Exercise of options, shares
Options exercised shares of common stock per share

Shareholders' Equity (Details_3

Shareholders' Equity (Details Textual 2) - USD ($)	1 Months Ended	12 Months Ended
	Mar. 31, 2017	Nov. 30, 2015
Shareholders' Equity (Textual)
Stock repurchased during period, value	$ 7,150,000
Stock repurchased during period, shares	5,000,000
Stock price	$ 1.43
Board of Directors [Member]
Shareholders' Equity (Textual)
Stock repurchased during period, value		$ 500,000
Repurchase of common stock, shares		57,283
Repurchase of common stock, value		$ 48,300

Shareholders' Equity (Details_4

Shareholders' Equity (Details Textual 3) - USD ($)	Mar. 15, 2017	Mar. 31, 2017	Aug. 31, 2018
Shareholders' Equity (Textual)
Repurchase of common stock		5,000,000
Tender Offer [Member]
Shareholders' Equity (Textual)
Repurchase of common stock	5,000,000
Common stock, per share	$ 1.43
Stock options [Member] | Non-employee director [Member]
Shareholders' Equity (Textual)
Compensation			$ 3,500
Stock options [Member] | Non-employee director one [Member]
Shareholders' Equity (Textual)
Compensation			$ 2,500

Settlement Agreement (Details)

Settlement Agreement (Details) - USD ($)	Mar. 15, 2017	Mar. 31, 2017	Aug. 31, 2018
Settlement Agreement (Textual)
Repurchase of common stock		5,000,000
Tender Offer [Member]
Settlement Agreement (Textual)
Repurchase of common stock	5,000,000
Common stock, per share	$ 1.43
Settlement Agreement [Member]
Settlement Agreement (Textual)
Tender offer, description	Tender Offer is not completed by March 15, 2017, the Company will (i) appoint the Stockholders to the Board as Class A directors with terms expiring at the Company's annual meeting of stockholders for fiscal year 2018 (the "2019 Meeting") and (ii) reduce the size of the Board to six directors, including the Stockholders.
Litigation costs			$ 300,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Aug. 31, 2018	Nov. 30, 2017
Deferred Tax Assets
Net operating loss	$ 3,446,016	$ 4,053,847
Allowance for bad debts	49,909	49,909
Inventory	106,604	92,225
Deferred Rent	11,280	13,786
Depreciation	120,247	148,569
Total deferred tax assets	3,734,056	4,358,336
Valuation allowance	(2,764,222)	(3,375,456)
Deferred Tax Assets	$ 969,834	$ 982,880

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Current:
Federal			$ 17,488	$ 821
States			42,947	13,415
Current, total			60,435	14,236
Deferred:
Federal			9,394	(13,544)
States			3,652	(3,933)
Deferred, total			13,046	(17,477)
Provision for income taxes	$ 26,808	$ 125,727	$ 73,481	$ (3,241)

Income Taxes (Details 2)

Income Taxes (Details 2)	9 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
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	21.00%	(34.00%)
Valuation allowance	(13.00%)	30.00%
State income taxes	4.00%	(3.00%)
Other
Effective tax rate	12.00%	(7.00%)

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	9 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Income Taxes (Textual)
Valuation allowance for deferred tax assets	$ 611,000
Net operating loss carryforwards	$ 8,615,000
Net operating loss carryforwards, expiration date	Nov. 30, 2020
Federal tax rate	21.00%	(34.00%)
Decrease in tax rate benefit	30.00%

Rental Commitments (Details)

Rental Commitments (Details)	Aug. 31, 2018USD ($)
Schedule of future minimum rental commitments
2,019	$ 182,236
2,020	185,880
2,021	15,515
Future minimum rental commitments	$ 383,631

Rental Commitments (Details Tex

Rental Commitments (Details Textual) - USD ($)	Jun. 30, 2015	Aug. 31, 2018	Aug. 31, 2017	Nov. 30, 2017
Rental Commitments (Textual)
Lease expiration period		Nov. 30, 2020
Net rental expense		$ 237,196	$ 235,334
Lease term, description		The rate of three per cent per annum throughout the lease term.
Related Party [Member]
Rental Commitments (Textual)
Annual minimum rental payments				$ 176,000
Net rental expense		$ 194,734	$ 192,102
Related Party [Member] | Hong Kong
Rental Commitments (Textual)
Annual minimum rental payments	$ 58,500
Term of lease	2 years

Employment and Other Agreemen_2

Employment and Other Agreements (Details)	1 Months Ended
	Feb. 29, 2016USD ($)leasearrangements
Employment and Other Agreements (Textual)
Number of officers involved in employment agreements | leasearrangements	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.
Officer [Member]
Employment and Other Agreements (Textual)
Base salary	$ 275,000
Officer One [Member]
Employment and Other Agreements (Textual)
Base salary	$ 225,000

Major Customers (Details)

Major Customers (Details)	9 Months Ended		12 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Nov. 30, 2017
Accounts receivable [Member]
Major Customers (Textual)
Percentage of concentration risk			10.00%
Customer One [Member] | Net sales [Member]
Major Customers (Textual)
Percentage of concentration risk	10.00%	13.00%
Customer One [Member] | Accounts receivable [Member]
Major Customers (Textual)
Percentage of concentration risk	11.00%
Customer Two [Member] | Net sales [Member]
Major Customers (Textual)
Percentage of concentration risk	13.00%
Customer Two [Member] | Accounts receivable [Member]
Major Customers (Textual)
Percentage of concentration risk	11.00%

Major Suppliers (Details)

Major Suppliers (Details) - Supplier Concentration Risk [Member] - Total Inventory Purchased [Member]	9 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Taiwan [Member]
Major Suppliers (Textual)
Percentage of inventory purchased of products	50.00%
Hong Kong [Member]
Major Suppliers (Textual)
Percentage of inventory purchased of products	17.00%
Elsewhere in Asia [Member]
Major Suppliers (Textual)
Percentage of inventory purchased of products	29.00%
Overseas Outside of Asia [Member]
Major Suppliers (Textual)
Portion of overseas products, description	Less than 1%.
Foreign Supplier [Member]
Major Suppliers (Textual)
Percentage of inventory purchased of products	46.00%	49.00%

Export Sales (Details)

Export Sales (Details) - USD ($)	9 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	$ 3,033,031	$ 2,945,872
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	3,480,461	3,506,149
Other Asian Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	1,341,707	1,391,537
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	314,118	300,130
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Export sales	$ 756,985	$ 1,042,237