Surge Components (SPRS) 10-K 26 Feb 21 2020 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Nov. 30, 2020	Feb. 26, 2021	May 31, 2020
Document Information Line Items
Entity Registrant Name	SURGE COMPONENTS INC
Document Type	10-K
Current Fiscal Year End Date	--11-30
Entity Common Stock, Shares Outstanding		5,437,526
Entity Public Float			$ 4,100,000
Amendment Flag	false
Entity Central Index Key	0000747540
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Nov. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	000-27688
Entity Incorporation, State or Country Code	NY
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Nov. 30, 2020	Nov. 30, 2019
Current assets:
Cash	$ 4,387,929	$ 2,739,305
Accounts receivable - net of allowance for doubtful accounts of $144,818 and $132,221	6,455,263	5,129,792
Inventory, net	3,410,534	3,593,231
Prepaid expenses and income taxes	533,862	486,940
Total current assets	14,787,588	11,949,268
Fixed assets – net of accumulated depreciation and amortization of $2,343,627 and $2,305,724	102,235	120,752
Operating Lease Right of Use Asset	1,636,411
Deferred income taxes	1,307,558	1,185,740
Other assets	22,607	22,607
Total assets	17,856,399	13,278,367
Current liabilities:
Accounts payable	3,880,805	3,344,182
Operating lease liabilities, current maturities	233,546
Financing lease payable, current maturities	8,475	7,782
Accrued expenses and taxes	565,922	581,201
Accrued salaries	677,256	506,663
Total current liabilities	5,366,004	4,439,828
Operating lease liabilities net of current maturities	1,430,144
Financing lease payable, net of current maturities	8,627	17,102
Note payable to bank	449,700
Deferred rent		12,998
Total liabilities	7,254,475	4,469,928
Commitments and contingencies
Shareholders’ equity:
Preferred stock - $.001 par value, 5,000,000 shares authorized:
Common stock - $.001 par value, 50,000,000 shares authorized, 5,437,526 and 5,320,026 shares issued and outstanding	5,437	5,319
Additional paid-in capital	16,948,532	16,666,465
Accumulated deficit	(6,352,055)	(7,863,355)
Total shareholders’ equity	10,601,924	8,808,439
Total liabilities and shareholders’ equity	17,856,399	13,278,367
Series C Preferred Stock
Shareholders’ equity:
Preferred stock - $.001 par value, 5,000,000 shares authorized:	10	10
Total shareholders’ equity	10	10
Series D Preferred Stock
Shareholders’ equity:
Preferred stock - $.001 par value, 5,000,000 shares authorized:

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Nov. 30, 2020	Nov. 30, 2019
Allowance for doubtful accounts of accounts receivable (in Dollars)	$ 144,818	$ 132,221
Accumulated depreciation and amortization on fixed assets (in Dollars)	$ 2,343,627	$ 2,305,724
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	5,437,526	5,320,026
Common stock, shares outstanding	5,437,526	5,320,026
Series C Preferred Stock
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	10,000	10,000
Preferred stock, shares outstanding	10,000	10,000
Preferred stock, liquidation preference per share (in Dollars per share)	$ 5	$ 5
Series D Preferred Stock
Preferred stock, shares authorized	75,000	75,000
Preferred stock, shares issued
Preferred stock, shares outstanding

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Income Statement [Abstract]
Net sales	$ 31,716,662	$ 32,491,597
Cost of goods sold	22,962,521	23,243,448
Gross profit	8,754,141	9,248,149
Operating expenses:
Selling and shipping expenses	2,419,985	2,702,742
General and administrative expenses	4,811,696	4,565,530
Depreciation and amortization	37,903	39,097
Total operating expenses	7,269,584	7,307,369
Income before other income and income taxes	1,484,557	1,940,780
Other (expense) income:
Interest expense	(1,997)	(2,688)
Other income	22,022	730
Other income (expense):	20,025	(1,958)
Income before income taxes	1,504,582	1,938,822
Income (benefit) taxes	(11,718)	(96,033)
Net income	1,516,300	2,034,855
Dividends on preferred stock	5,000	5,000
Net income available to common shareholders	$ 1,511,300	$ 2,029,855
Net income per share available to common shareholders:
Basic (in Dollars per share)	$ 0.28	$ 0.38
Diluted (in Dollars per share)	$ 0.27	$ 0.37
Weighted Shares Outstanding:
Basic (in Shares)	5,375,730	5,295,393
Diluted (in Shares)	5,532,536	5,472,508

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders’ Equity - USD ($)	Series C Preferred	Common	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at beginning at Nov. 30, 2018	$ 10	$ 5,262	$ 16,577,772	$ (9,893,210)	$ 6,689,834
Balance at beginning (in Shares) at Nov. 30, 2018	10,000	5,262,128
Preferred stock dividends				(5,000)	(5,000)
Stock based compensation		$ 57	88,693		88,750
Stock based compensation (in Shares)		57,898
Net Income				2,034,855	2,034,855
Balance at ending at Nov. 30, 2019	$ 10	$ 5,319	16,666,465	(7,863,355)	8,808,439
Balance at ending (in Shares) at Nov. 30, 2019	10,000	5,320,026
Preferred stock dividends				(5,000)	(5,000)
Stock option expense			154,534		154,534
Stock based compensation		$ 43	62,358		62,401
Stock based compensation (in Shares)		42,500
Stock option exercise		$ 75	65,175		65,250
Stock option exercise (in Shares)		75,000
Net Income				1,516,300	1,516,300
Balance at ending at Nov. 30, 2020	$ 10	$ 5,437	$ 16,948,532	$ (6,352,055)	$ 10,601,924
Balance at ending (in Shares) at Nov. 30, 2020	10,000	5,437,526

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 1,516,300	$ 2,034,855
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	37,903	39,097
Stock compensation expense	216,935	88,750
Deferred income taxes	(121,818)	(203,116)
Allowance for doubtful accounts	12,597	(29,339)
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable	(1,338,068)	897,040
Inventory	182,697	(204,166)
Prepaid expenses and income taxes	(46,922)	(467,351)
Other assets	14,281	(9,223)
Accounts payable	536,623	(1,075,831)
Deferred rent		(12,556)
Accrued expenses	150,314	(29,212)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	1,160,842	1,028,948
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets	(19,386)	(43,854)
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(19,386)	(43,854)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	65,250
Repayment of financing lease obligations	(7,782)	(7,652)
Net Borrowings on loans payable	449,700
NET CASH FLOWS PROVIDED BY(USED IN) FINANCING ACTIVITIES	507,168	(7,652)
NET CHANGE IN CASH	1,648,624	977,442
CASH AT BEGINNING OF PERIOD	2,739,305	1,761,863
CASH AT END OF PERIOD	4,387,929	2,739,305
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	201,562	205,806
Interest paid	1,997	2,688
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	12 Months Ended
	Nov. 30, 2020
Accounting Policies [Abstract]
ORGANIZATION, DESCRIPTION OF COMPANY’S BUSINESS AND BASIS OF PRESENTATION	NOTE A – ORGANIZATION, DESCRIPTION OF COMPANY’S BUSINESS AND BASIS OF PRESENTATION Surge Components, Inc. (“Surge”) was incorporated in the State of New York and commenced operations on November 24, 1981 as an importer of electronic products, primarily capacitors and discrete semi-conductors selling to customers located principally throughout North America. On June 24, 1988, Surge formed Challenge/Surge Inc. (“Challenge”), a wholly-owned subsidiary to engage in the sale of electronic component products and sounding devices from established brand manufacturers to customers located principally throughout North America. In May 2002, Surge and an officer of Surge founded and became sole owners of Surge Components, Limited (“Surge Limited”), a Hong Kong corporation. Under current Hong Kong law, Surge Limited is required to have at least two shareholders. Surge owns 999 shares of the outstanding common stock and the officer of Surge owns 1 share of the outstanding common stock. The officer of Surge has assigned his rights regarding his 1 share to Surge. Surge Limited started doing business in July 2002. Surge Limited operations have been consolidated with the Company. Surge Limited is responsible for the sale of Surge’s products to customers located in Asia. On August 31, 2010, the Company changed its corporate domicile by merging into a newly-formed corporation, Surge Components, Inc. (Nevada), which was formed in the State of Nevada for that purpose. Surge Components Inc. is the surviving entity. In February 2019, the Company converted into a Delaware corporation. The number of authorized shares of common stock was decreased to 50,000,000 shares.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Nov. 30, 2020
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. (2) Accounts Receivable: Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the payment terms. The Company reviews its exposure to amounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base, bad debts to date have not been material. (3) Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU replaces nearly all existing U.S. generally accepted accounting principles guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment by the Company. The Company adopted the standard using the modified retrospective approach in its fiscal year beginning December 1, 2017. The preponderance of the Company’s contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment. Revenue is recognized for products sold by the Company when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, collectability is reasonably assured and title and risk of loss have been transferred to the customer. This occurs when product is shipped from the Company’s warehouse. For direct shipments, revenue is recognized when product is shipped from the Company’s supplier. The Company has a long term supply agreement with one of our suppliers. The Company purchases the merchandise from the supplier and has the supplier directly ship to the customer through a freight forwarder. Title passes to customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $3,223,000 and $2,974,000 for the years ended November 30, 2020 and November 30, 2019 respectively. The Company also acts as a sales agent to certain customers in North America for one of its suppliers. The Company reports these commissions as revenues in the period earned. Commission revenue totaled $267,019 and $536,668 for the years ended November 30, 2020 and November 30, 2019 respectively. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company and its subsidiaries currently have agreements with several distributors. There are no provisions for the granting of price concessions in any of the agreements. Revenues under these distribution agreements were approximately $6,627,000 and $5,451,000 for the years ended November 30, 2020 and November 30, 2019 respectively. (4) Inventories Inventories, which consist solely of products held for resale, are stated at the lower of cost (first-in, first-out method) or net realizable value. Products are included in inventory when the Company obtains title and risk of loss on the products, primarily when shipped from the supplier. Inventory in transit principally from foreign suppliers at November 30, 2020 was $1,026,608. The Company, at November 30, 2020, has a reserve against slow moving and obsolete inventory of $250,565. From time to time the Company’s products are subject to legislation from various authorities on environmental matters. (5) Depreciation and Amortization Fixed assets are recorded at cost. Depreciation is generally calculated on a straight line method and amortization of leasehold improvements is provided for on the straight-line method over the estimated useful lives of the various assets as follows: Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter Maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. (6) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At November 30, 2020 and November 30, 2019, the Company’s uninsured cash balances totaled $3,823,433 and $2,174,808, respectively. (7) Income Taxes The Company’s deferred income taxes arise primarily from the differences in the recording of net operating losses, allowances for bad debts, inventory reserves and depreciation expense for financial reporting and income tax purposes. A valuation allowance is provided when it has been determined to be more likely than not that the likelihood of the realization of deferred tax assets will not be realized. See Note I. The Company follows the provisions of the Accounting Standards Codification topic, ASC 740, “Income Taxes” (ASC 740). There have been no unrecognized tax benefits and, accordingly, there has been no effect on the Company’s financial condition or results of operations as a result of ASC 740. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years before fiscal years ending November 30, 2016, and state tax examinations for years before fiscal years ending November 30, 2015 Management does not believe there will be any material changes in our unrecognized tax positions over the next twelve months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740, there was no accrued interest or penalties associated with any unrecognized benefits, nor was any interest expense recognized during the years ended November 30, 2020 and November 30, 2019. (8) Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. (9) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. (10) Marketing and promotional costs: Marketing and promotional costs are expensed as incurred and have not been material to date. The Company has contractual arrangements with several of its distributors which provide for cooperative advertising rights to the distributor as a percentage of sales. Cooperative advertising is reflected as a reduction in revenues and has not been material to date. (11) Fair Value of Financial Instruments The carrying amount of cash balances, accounts receivable, accounts payable and accrued expenses approximate their fair value based on the nature of those items. Estimated fair values of financial instruments are determined using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret the market data used to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative of the amounts that could be realized in a current market exchange. (12) Shipping Costs The Company classifies shipping costs as a component of selling expenses. Shipping costs totaled $3,462 and $5,371 for the years ended November 30, 2020 and November 30, 2019 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. Total potentially dilutive shares excluded from diluted weighted shares outstanding at November 30, 2020 and November 30, 2019 totaled 197,529 and 69,886, respectively. (14) Stock Based Compensation Stock Based Compensation to Employees The Company accounts for its stock-based compensation for employees in accordance with Accounting Standards Codification (“ASC”) 718. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees over the related vesting period. Stock Based Compensation to Other than Employees The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. (15) Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) On December 1, 2019, the Company adopted Topic 842 applying the optional transition method, which allows an entity to apply the new standard at the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of adopting Topic 842, the Company recognized assets and liabilities for the rights and obligations created by operating leases totaling approximately $290,000. The Company determines if a contract contains a lease at inception based on whether it conveys the right to control the use of an identified asset. Substantially all of the Company’s leases are classified as operating leases. The Company records operating lease right-of-use assets within “Other assets” and lease liabilities are recorded within “current and noncurrent liabilities” in the consolidated balance sheets. Lease expenses are recorded within “General and administrative expenses” in the consolidated statements of operations. Operating lease payments are presented within “Operating cash flows” in the consolidated statements of cash flows. Operating lease right-of-use assets and lease liabilities are recognized based on the net present value of future minimum lease payments over the lease term starting on the commencement date. The Company generally is not able to determine the rate implicit in its leases and, as such, applies an incremental borrowing rate based on the Company’s cost of borrowing for the relevant terms of each lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include an option to extend or terminate a lease if it is reasonably certain that the Company will exercise such options. The Company has elected the practical expedient to not separate lease components from non-lease components, and also has elected not to record a right-of-use asset or lease liability for leases which, at inception, have a term of twelve months or less. Variable lease payments are recognized in the period in which the obligation for those payments is incurred.

Fixed Assets

Fixed Assets	12 Months Ended
	Nov. 30, 2020
Property, Plant and Equipment [Abstract]
FIXED ASSETS	NOTE C – FIXED ASSETS Fixed assets consist of the following: November 30, November 30, 2020 2019 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 1,022,556 1,022,556 Computer Equipment 1,095,335 1,075,949 Less-Accumulated Depreciation (2,343,627 ) (2,305,724 ) Net Fixed Assets $ 102,235 $ 120,752 Depreciation and amortization expense for the years ended November 30, 2020 and November 30, 2019 was $37,903 and $39,097, respectively.

Financing Lease Obligations

Financing Lease Obligations	12 Months Ended
	Nov. 30, 2020
Financing Lease Obligations [Abstract]
FINANCING LEASE OBLIGATIONS	NOTE D – FINANCING LEASE OBLIGATIONS The Company is obligated under financing leases for telephone equipment. The Company leases equipment under two capital lease arrangements with NEC Financial Services. Pursuant to the leases, the lessor retains actual title to the leased property until the termination of the lease, at which time the equipment can be purchased for one dollar for each lease. The terms of the leases are 60 months with a combined monthly payment of $815, respectively. The assumed interest rates on the leases are 9.342%. The leases terminate in 2022. Future minimum lease payments under these financing lease obligations as of November 30, 2020 are as follows: 2021 $ 9,779 2022 $ 9,779 Total $ 19,558 Less: interest portion 2,456 Present value of net minimum lease payments $ 17,102 Less: current portion 8,475 Non-current portion $ 8,627 Financing lease obligations mature as follows: Twelve months ended November 30, 2020: 2021 $ 8,475 2022 $ 8,627 Principal payments remaining $ 17,102

Loans Payable

Loans Payable	12 Months Ended
	Nov. 30, 2020
Payables and Accruals [Abstract]
LOANS PAYABLE	NOTE E – LOANS PAYABLE In February 2017, the Company obtained a line of credit with a bank for up to $3,000,000 (the “Credit Line”). Borrowings under the Credit Line are due upon demand and accrue interest at the greater of the prime rate or the LIBOR rate plus two percent (and may be increased by three percent in the event the Company fails to (i) repay all amounts due on the Credit Line upon demand or (ii) comply with any terms or conditions relating to the Credit Line). The Credit Line is collateralized by substantially all the assets of the Company. As of November 30, 2020, the balance on the Credit Line was $0. As of November 30, 2020, the Company was in compliance with the covenant for the debt service coverage ratio for the Credit Line. The Company in May 2020 received loan proceeds in the amount of approximately $449,700 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after twenty-four weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the period. The unforgiven portion of the PPP loan is payable over five years at an interest rate of 1%, with a deferral of payments for the first twelve months. The Company is currently in the process of applying for forgiveness but can not be assured of forgiveness for all or part of the PPP borrowings.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Nov. 30, 2020
Accrued Expenses [Abstract]
ACCRUED EXPENSES	NOTE F – ACCRUED EXPENSES Accrued expenses consist of the following: November 30, November 30, 2020 2019 Commissions $ 215,052 $ 233,784 Preferred stock dividends 151,569 146,569 Other accrued expenses 199,301 200,848 $ 565,922 $ 581,201

Retirement Plan

Retirement Plan	12 Months Ended
	Nov. 30, 2020
Retirement Benefits [Abstract]
RETIREMENT PLAN	NOTE G – RETIREMENT PLAN In June 1997, the Company adopted a qualified 401(k) retirement plan for all full-time employees who are twenty-one years of age and have completed twelve months of service. The plan allows total employee contributions of up to fifteen percent (15%) of the eligible employee’s salary through salary reduction. The Company makes a matching contribution of twenty percent (20%) of each employee’s contribution for each dollar of employee deferral up to five percent (5%) of the employee’s salary. Net assets for the plan, as estimated by Union Central, Inc., which maintains the plan’s records, were approximately $1,776,000 at November 30, 2020. Pension expense for the years ended November 30, 2020 and November 30, 2019 was $2,995 and $2,527, respectively.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Nov. 30, 2020
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE H – SHAREHOLDERS’ EQUITY [1] Preferred Stock In February 1996, the Company amended its Certificate of Incorporation to authorize the issuance of 1,000,000 shares of preferred stock in one or more series. In August 2010, the number of preferred shares authorized for issuance was increased to 5,000,000 shares. In November 2000, the Company authorized 100,000 shares of preferred stock as Non-Voting Redeemable Convertible Series C Preferred Stock (“Series C Preferred”). Each share of Series C Preferred is automatically convertible into 10 shares of our common stock upon shareholder approval. If the Series C Preferred were converted into common stock on or before April 15, 2001, these shares were entitled to cumulative dividends at the rate of $.50 per share per annum commencing April 15, 2001 payable on June 30 and December 31 of each year. In November 2000, 70,000 shares of the Series C Preferred were issued in payment of financial consulting services to its investment banker and a shareholder of the Company. 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 $151,569 have not been paid for the semi-annual periods ended December 31, 2001 through the semi-annual payment due June 30, 2019. The Company has accrued these dividends. At November 30, 2020, there are 10,000 shares of Series C Preferred issued and outstanding. In October 2016, the Company authorized 75,000 shares of preferred stock as Voting Non-Redeemable Convertible Series D Preferred Stock (“Series D Preferred”). None of the Series D Preferred Stock is outstanding as of November 30, 2020. [2] 2010 Incentive Stock Plan In March 2010, the Company adopted, and in April 2010 the shareholders ratified, the 2010 Incentive Stock Plan (“2010 Stock Plan”). The 2010 Stock Plan provides for the grant of options to officers, employees, directors or consultants to the Company to purchase an aggregate of 1,500,000 common shares. [3] 2015 Incentive Stock Plan In November 2015, the Company adopted and the shareholders ratified, the 2015 Incentive Stock Plan (“2015 Stock Plan”). The 2015 Stock Plan provides for the grant of options to officers, employees, directors or consultants to the Company to purchase an aggregate of 1,500,000 common shares. In May 2016 a total of 99,151 shares were issued to the Company’s officers as part of their 2015 bonus compensation under the 2015 Stock Plan. In May 2019, a total of 47,207 shares were issued to the Company’s officers as part of their 2018 bonus compensation under the 2015 Stock Plan. In April 2020, the Company awarded one non-employee director 15,000 shares of its common stock under the 2015 Stock Plan. The Company recorded a cost of $21,150 related to the issuance of these shares. In April 2020, a total of 27,500 shares were issued to one of the Company’s officers as part of their 2019 bonus compensation under the 2015 Stock Plan. The Company recorded a cost of $41,250 relating to the issuance of these shares. In April 2020, the Company granted stock options to (a) four non-employee directors to each purchase 15,000 shares of common stock, (b) one non-employee-director to purchase 25,000 shares of common stock, and (c) two Company officers to each purchase 50,000 shares of common stock at an exercise price of $1.41 per share, the market price of the common stock on the date of the grant. These options vest immediately and expire five years from the grant date. The Company recorded a cost of $154,534 related to the granting of these options. Activity in the Company’s stock plans for the year ended November 30, 2020 is summarized as follows: Shares Weighted Options outstanding November 30, 2019 147,000 $ 1.01 Options issued in the year ended November 30, 2020 185,000 $ 1.41 Options exercised in the year ended November 30, 2020 (75,000 ) $ (0.87 ) Options cancelled in the year ended November 30, 2020 (2,000 ) $ (1.15 ) Options outstanding at November 30, 2020 255,000 $ 1.34 Options exercisable at November 30, 2020 255,000 $ 1.34 The intrinsic value of the exercisable options at November 30, 2020 totaled $227,300. At November 30, 2020 the weighted average remaining life of the stock options is 3.26 years. At November 30, 2020, there was no unrecognized compensation cost related to the stock options granted under the plan. [4] Compensation of Directors Compensation for each non-employee director is $2,500 per month (and $3,500 per month for a non-employee director that serves as the chairman of more than two committees of the Board of Directors).

Income Taxes

Income Taxes	12 Months Ended
	Nov. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE I – INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the enacted tax rates in effect in the years in which the differences are expected to reverse. The Company’s deferred income taxes are comprised of the following: November 30, November 30, 2020 2019 Deferred Tax Assets Net operating loss $ 1,066,794 $ 1,524,286 Allowance for bad debts 30,413 27,121 Inventory 60,746 60,746 Deferred rent 2,460 3,282 Other 97,673 62,071 Depreciation 63,632 65,402 Total deferred tax assets 1,321,718 1,742,908 Valuation allowance (14,160 ) (557,168 ) Deferred Tax Assets $ 1,307,558 $ 1,185,740 The valuation allowance for the deferred tax assets relates principally to the uncertainty of the utilization of deferred tax assets and was calculated in accordance with the provisions of ASC 740, which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. The valuation allowance decreased by approximately $543,000 during the year ended November 30, 2020. This valuation is based on management estimates of future taxable income. Although the degree of variability inherent in the estimates of future taxable income is significant and subject to change in the near term, management believes, that the estimate is adequate. The estimated valuation allowance is continually reviewed and as adjustments to the allowance become necessary, such adjustments are reflected in the current operations. The Company’s income tax expense consists of the following: Years Ended November 30, November 30, Current: Federal $ - $ - States 110,100 107,083 110,100 107,083 Deferred: Federal (87,149 ) (125,932 ) States (34,669 ) (77,184 ) (121,818 ) (203,116 ) Provision for income taxes $ (11,718 ) $ (96,033 ) The Company files a consolidated income tax return with its wholly-owned subsidiaries and has net operating loss carryforwards of approximately $4,161,000 for federal and state purposes, which expire through 2025. 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: Years ended November 30, November 30, 2020 2019 U.S Federal Income tax statutory rate 21 % 21 % Valuation allowance (27 )% (31 )% State income taxes 5 % 5 % Other - - Effective tax rate (1 )% (5 )%

Operating Lease Commitments

Operating Lease Commitments	12 Months Ended
	Nov. 30, 2020
Disclosure Text Block [Abstract]
OPERATING LEASE COMMITMENTS	NOTE J – OPERATING LEASE COMMITMENTS The Company leases its office and warehouse space through 2030 from a corporation that is controlled by officers/shareholders of the Company (“Related Company”). Annual minimum rental payments to the Related Company approximated $180,000 for the year ended November 30, 2020, and increase at the rate of two per cent per annum throughout the lease term. Pursuant to the lease, rent expense charged to operations differs from rent paid because of scheduled rent increases. Accordingly, the Company has recorded deferred rent. Rent expense is calculated by allocating to rental payments, including those attributable to scheduled rent increases, on a straight line basis, over the lease term. The Company has a lease to rent office space and a warehouse in Hong Kong through June 2021. Annual minimum rental payments for this space are approximately $68,460. The Company has a lease to rent warehouse space in Hong Kong through December 31, 2022. Annual minimum rental payments for this space are approximately $36,840. The Company’s future minimum rental commitments at November 30, 2020 are as follows: Twelve Months Ended November 30, 2021 $ 233,546 2022 194,352 2023 196,239 2024 202,204 2025 205,227 2021 1,108,281 $ 2,139,849 Net rental expense for the years ended November 30, 2020 and November 30, 2019 were $390,285 and $354,424 respectively, of which $267,495 and $264,137 respectively, was paid to the Related Company.

Employment and Other Agreements

Employment and Other Agreements	12 Months Ended
	Nov. 30, 2020
Disclosure Text Block Supplement [Abstract]
EMPLOYMENT AND OTHER AGREEMENTS	NOTE K – EMPLOYMENT AND OTHER AGREEMENTS In February 2016, the Company entered into revised employment agreements with two officers of the Company. Pursuant to these agreements, the base salary for one officer is $275,000 and the base salary for the other officer is $225,000. The agreements continue until terminated by either party. The Company’s compensation committee may award these officers with bonuses and will review the base salary amounts for each of the officers on an annual basis to determine if any changes to the base salary amounts need to be made and may also award these officers with annual bonuses. Pursuant to the employment agreements, the officers are prohibited from engaging in activities which are competitive with those of the Company during their employment with the Company and for one year following termination. If the agreement is terminated other than for cause, the officer would be entitled to all base salary earned through the date of termination, accrued but unused vacation, all vested equity, and bonus amounts payable to the officer through the date of termination. The officers would also be entitled to receive an additional thirty-six months of annual compensation equal to the average of his base salary and bonus for the three calendar years prior to the date of termination, payable in accordance with the Company’s regular payroll practice over a 52-week period.

Major Customers

Major Customers	12 Months Ended
	Nov. 30, 2020
Debt Disclosure [Abstract]
MAJOR CUSTOMERS	NOTE L – MAJOR CUSTOMERS The Company had two customers who each accounted for 17% and 15% of net sales for year ended November 30, 2020 and two customers who accounted for 14% and 12% of net sales for the year ended November 30, 2019. The Company had one customer who accounted for 28% of accounts receivable at November 30, 2020 and one customer who accounted for 18% of accounts receivable at November 30, 2019.

Major Suppliers

Major Suppliers	12 Months Ended
	Nov. 30, 2020
Major Suppliers [Abstract]
MAJOR SUPPLIERS	NOTE M – MAJOR SUPPLIERS During the years ended November 30, 2020 and November 30, 2019 there was one foreign supplier accounting for 39% and 38% of total inventory purchased. The Company purchases substantially all of its products overseas. For the year ended November 30, 2020, the Company purchased 45% of its products from Taiwan, 16% from Hong Kong, 34% 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	12 Months Ended
	Nov. 30, 2020
Segment Reporting [Abstract]
EXPORT SALES	NOTE N – EXPORT SALES The Company’s export sales were as follows: Year Ended November 30, November 30, 2020 2019 Canada 4,214,031 4,233,319 China 5,778,321 5,828,541 Other Asian Countries 1,989,028 2,109,843 South America 180,474 527,183 Europe 1,207,560 1,390,715 Revenues are attributed to countries based on location of customer.

Subsequent Events

Subsequent Events	12 Months Ended
	Nov. 30, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE P – SUBSEQUENT EVENTS In early January 2020, an outbreak of a respiratory illness caused by the Coronovirus was identified in Wuhan, China. In response to the resulting pandemic, governments around the world took various preventative steps up to and including full or partial shutdowns. As a result of the drop in production in our suppliers and customers, the Company experienced order cancellations and order hold notices from customers, especially in the second and third fiscal quarters of 2020. Although business has improved in the fourth quarter of 2020, the effects of the pandemic will have an ongoing impact on the Company’s business. The duration of this crisis and its impact on both the Company’s customers and supply chain is expected to have a material impact on the consolidated results of operations, cash flows and financial condition, but cannot be reasonable estimated at this time.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	12 Months Ended
	Nov. 30, 2020
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.
Accounts Receivable	(2) Accounts Receivable: Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the payment terms. The Company reviews its exposure to amounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base, bad debts to date have not been material.
Revenue Recognition	(3) Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU replaces nearly all existing U.S. generally accepted accounting principles guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment by the Company. The Company adopted the standard using the modified retrospective approach in its fiscal year beginning December 1, 2017. The preponderance of the Company’s contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment. Revenue is recognized for products sold by the Company when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, collectability is reasonably assured and title and risk of loss have been transferred to the customer. This occurs when product is shipped from the Company’s warehouse. For direct shipments, revenue is recognized when product is shipped from the Company’s supplier. The Company has a long term supply agreement with one of our suppliers. The Company purchases the merchandise from the supplier and has the supplier directly ship to the customer through a freight forwarder. Title passes to customer upon the merchandise being received by a freight forwarder. Direct shipments were approximately $3,223,000 and $2,974,000 for the years ended November 30, 2020 and November 30, 2019 respectively. The Company also acts as a sales agent to certain customers in North America for one of its suppliers. The Company reports these commissions as revenues in the period earned. Commission revenue totaled $267,019 and $536,668 for the years ended November 30, 2020 and November 30, 2019 respectively. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company and its subsidiaries currently have agreements with several distributors. There are no provisions for the granting of price concessions in any of the agreements. Revenues under these distribution agreements were approximately $6,627,000 and $5,451,000 for the years ended November 30, 2020 and November 30, 2019 respectively.
Inventories	(4) Inventories Inventories, which consist solely of products held for resale, are stated at the lower of cost (first-in, first-out method) or net realizable value. Products are included in inventory when the Company obtains title and risk of loss on the products, primarily when shipped from the supplier. Inventory in transit principally from foreign suppliers at November 30, 2020 was $1,026,608. The Company, at November 30, 2020, has a reserve against slow moving and obsolete inventory of $250,565. From time to time the Company’s products are subject to legislation from various authorities on environmental matters.
Depreciation and Amortization	(5) Depreciation and Amortization Fixed assets are recorded at cost. Depreciation is generally calculated on a straight line method and amortization of leasehold improvements is provided for on the straight-line method over the estimated useful lives of the various assets as follows: Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter Maintenance and repairs are expensed as incurred while renewals and betterments are capitalized.
Concentration of Credit Risk	(6) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At November 30, 2020 and November 30, 2019, the Company’s uninsured cash balances totaled $3,823,433 and $2,174,808, respectively.
Income Taxes	(7) Income Taxes The Company’s deferred income taxes arise primarily from the differences in the recording of net operating losses, allowances for bad debts, inventory reserves and depreciation expense for financial reporting and income tax purposes. A valuation allowance is provided when it has been determined to be more likely than not that the likelihood of the realization of deferred tax assets will not be realized. See Note I. The Company follows the provisions of the Accounting Standards Codification topic, ASC 740, “Income Taxes” (ASC 740). There have been no unrecognized tax benefits and, accordingly, there has been no effect on the Company’s financial condition or results of operations as a result of ASC 740. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years before fiscal years ending November 30, 2016, and state tax examinations for years before fiscal years ending November 30, 2015 Management does not believe there will be any material changes in our unrecognized tax positions over the next twelve months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740, there was no accrued interest or penalties associated with any unrecognized benefits, nor was any interest expense recognized during the years ended November 30, 2020 and November 30, 2019.
Cash Equivalents	(8) Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Use of Estimates	(9) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Marketing and promotional costs	(10) Marketing and promotional costs: Marketing and promotional costs are expensed as incurred and have not been material to date. The Company has contractual arrangements with several of its distributors which provide for cooperative advertising rights to the distributor as a percentage of sales. Cooperative advertising is reflected as a reduction in revenues and has not been material to date.
Fair Value of Financial Instruments	(11) Fair Value of Financial Instruments The carrying amount of cash balances, accounts receivable, accounts payable and accrued expenses approximate their fair value based on the nature of those items. Estimated fair values of financial instruments are determined using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret the market data used to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative of the amounts that could be realized in a current market exchange.
Shipping Costs	(12) Shipping Costs The Company classifies shipping costs as a component of selling expenses. Shipping costs totaled $3,462 and $5,371 for the years ended November 30, 2020 and November 30, 2019 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. Total potentially dilutive shares excluded from diluted weighted shares outstanding at November 30, 2020 and November 30, 2019 totaled 197,529 and 69,886, respectively.
Stock Based Compensation	(14) Stock Based Compensation Stock Based Compensation to Employees The Company accounts for its stock-based compensation for employees in accordance with Accounting Standards Codification (“ASC”) 718. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees over the related vesting period. Stock Based Compensation to Other than Employees The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.
Leases	(15) Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) On December 1, 2019, the Company adopted Topic 842 applying the optional transition method, which allows an entity to apply the new standard at the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of adopting Topic 842, the Company recognized assets and liabilities for the rights and obligations created by operating leases totaling approximately $290,000. The Company determines if a contract contains a lease at inception based on whether it conveys the right to control the use of an identified asset. Substantially all of the Company’s leases are classified as operating leases. The Company records operating lease right-of-use assets within “Other assets” and lease liabilities are recorded within “current and noncurrent liabilities” in the consolidated balance sheets. Lease expenses are recorded within “General and administrative expenses” in the consolidated statements of operations. Operating lease payments are presented within “Operating cash flows” in the consolidated statements of cash flows. Operating lease right-of-use assets and lease liabilities are recognized based on the net present value of future minimum lease payments over the lease term starting on the commencement date. The Company generally is not able to determine the rate implicit in its leases and, as such, applies an incremental borrowing rate based on the Company’s cost of borrowing for the relevant terms of each lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include an option to extend or terminate a lease if it is reasonably certain that the Company will exercise such options. The Company has elected the practical expedient to not separate lease components from non-lease components, and also has elected not to record a right-of-use asset or lease liability for leases which, at inception, have a term of twelve months or less. Variable lease payments are recognized in the period in which the obligation for those payments is incurred.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Nov. 30, 2020
Accounting Policies [Abstract]
Schedule of estimated useful life of fixed assets	Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter

Fixed Assets (Tables)

Fixed Assets (Tables)	12 Months Ended
	Nov. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of fixed assets	November 30, November 30, 2020 2019 Furniture and Fixtures $ 327,971 $ 327,971 Leasehold Improvements 1,022,556 1,022,556 Computer Equipment 1,095,335 1,075,949 Less-Accumulated Depreciation (2,343,627 ) (2,305,724 ) Net Fixed Assets $ 102,235 $ 120,752

Financing Lease Obligations (Ta

Financing Lease Obligations (Tables)	12 Months Ended
	Nov. 30, 2020
Financing Lease Obligations [Abstract]
Schedule of future minimum lease payments under these Financing lease obligations	2021 $ 9,779 2022 $ 9,779 Total $ 19,558 Less: interest portion 2,456 Present value of net minimum lease payments $ 17,102 Less: current portion 8,475 Non-current portion $ 8,627
Schedule of financing lease obligations mature	Financing lease obligations mature as follows: Twelve months ended November 30, 2020: 2021 $ 8,475 2022 $ 8,627 Principal payments remaining $ 17,102

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Nov. 30, 2020
Accrued Expenses [Abstract]
Schedule of accrued expenses	November 30, November 30, 2020 2019 Commissions $ 215,052 $ 233,784 Preferred stock dividends 151,569 146,569 Other accrued expenses 199,301 200,848 $ 565,922 $ 581,201

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Nov. 30, 2020
Equity [Abstract]
Schedule of activity in the 2015 incentive stock plan	Shares Weighted Options outstanding November 30, 2019 147,000 $ 1.01 Options issued in the year ended November 30, 2020 185,000 $ 1.41 Options exercised in the year ended November 30, 2020 (75,000 ) $ (0.87 ) Options cancelled in the year ended November 30, 2020 (2,000 ) $ (1.15 ) Options outstanding at November 30, 2020 255,000 $ 1.34 Options exercisable at November 30, 2020 255,000 $ 1.34

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Nov. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of deferred income taxes	November 30, November 30, 2020 2019 Deferred Tax Assets Net operating loss $ 1,066,794 $ 1,524,286 Allowance for bad debts 30,413 27,121 Inventory 60,746 60,746 Deferred rent 2,460 3,282 Other 97,673 62,071 Depreciation 63,632 65,402 Total deferred tax assets 1,321,718 1,742,908 Valuation allowance (14,160 ) (557,168 ) Deferred Tax Assets $ 1,307,558 $ 1,185,740
Schedule of income tax expense	Years Ended November 30, November 30, Current: Federal $ - $ - States 110,100 107,083 110,100 107,083 Deferred: Federal (87,149 ) (125,932 ) States (34,669 ) (77,184 ) (121,818 ) (203,116 ) Provision for income taxes $ (11,718 ) $ (96,033 )
Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate	Years ended November 30, November 30, 2020 2019 U.S Federal Income tax statutory rate 21 % 21 % Valuation allowance (27 )% (31 )% State income taxes 5 % 5 % Other - - Effective tax rate (1 )% (5 )%

Operating Lease Commitments (Ta

Operating Lease Commitments (Tables)	12 Months Ended
	Nov. 30, 2020
Disclosure Text Block [Abstract]
Schedule of future minimum rental commitments	2021 $ 233,546 2022 194,352 2023 196,239 2024 202,204 2025 205,227 2021 1,108,281 $ 2,139,849

Export Sales (Tables)

Export Sales (Tables)	12 Months Ended
	Nov. 30, 2020
Segment Reporting [Abstract]
Schedule of export sales	Year Ended November 30, November 30, 2020 2019 Canada 4,214,031 4,233,319 China 5,778,321 5,828,541 Other Asian Countries 1,989,028 2,109,843 South America 180,474 527,183 Europe 1,207,560 1,390,715

Organization, Description of _2

Organization, Description of Company’s Business and Basis of Presentation (Details)	1 Months Ended
	Feb. 28, 2019shares	May 31, 2002shares
Accounting Policies [Abstract]
Minimum number of shareholders to hold equity		2
Number of shares outstanding - held by surge		999
Number of shares outstanding - held by officers of surge		1
Ownership rights transferred to parent company		1
Decrease in common stock shares authorized for issuance	50,000,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Dec. 02, 2019
Accounting Policies [Abstract]
Direct shipments revenue	$ 3,223,000	$ 2,974,000
Commission revenue	267,019	536,668
Revenues from distribution agreements	6,627,000	5,451,000
Inventory in transit from foreign suppliers	1,026,608
Reserve against slow moving and obsolete inventory	250,565
Amount of uninsured cash balances	3,823,433	2,174,808
Shipping costs	$ 3,462	$ 5,371
Diluted weighted shares outstanding (in Shares)	197,529	69,886
Capital lease obligations			$ 290,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets	12 Months Ended
	Nov. 30, 2020
Furniture, fixtures and equipment [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items]
Property, plant and equipment, useful life	5 years
Furniture, fixtures and equipment [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items]
Property, plant and equipment, useful life	7 years
Computer equipment [Member]
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items]
Property, plant and equipment, useful life	5 years
Leasehold Improvements [Member]
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life of fixed assets [Line Items]
Property, plant and equipment, estimated useful lives	Estimated useful life or lease term, whichever is shorter

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 37,903	$ 39,097

Fixed Assets (Details) - Schedu

Fixed Assets (Details) - Schedule of fixed assets - USD ($)	Nov. 30, 2020	Nov. 30, 2019
Property, Plant and Equipment [Line Items]
Less-Accumulated Depreciation	$ (2,343,627)	$ (2,305,724)
Net Fixed Assets	102,235	120,752
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Fixed assets gross	327,971	327,971
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Fixed assets gross	1,022,556	1,022,556
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Fixed assets gross	$ 1,095,335	$ 1,075,949

Financing Lease Obligations (De

Financing Lease Obligations (Details)	12 Months Ended
	Nov. 30, 2020USD ($)
Financing Lease Obligations [Abstract]
Leases equipment	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	2022

Financing Lease Obligations (_2

Financing Lease Obligations (Details) - Schedule of future minimum lease payments under these financing lease obligations	Nov. 30, 2020USD ($)
Schedule of future minimum lease payments under these financing lease obligations [Abstract]
2021	$ 9,779
2022	9,779
Total	19,558
Less: interest portion	2,456
Present value of net minimum lease payments	17,102
Less: current portion	8,475
Non-current portion	$ 8,627

Financing Lease Obligations (_3

Financing Lease Obligations (Details) - Schedule of financing lease obligations mature	Nov. 30, 2020USD ($)
Schedule of financing lease obligations mature [Abstract]
2021	$ 8,475
2022	8,627
Principal payments remaining	$ 17,102

Loans Payable (Details)

Loans Payable (Details) - USD ($)	1 Months Ended	12 Months Ended
	May 31, 2020	Nov. 30, 2020	Feb. 28, 2017
Loans Payable (Details) [Line Items]
Line of credit		$ 0	$ 3,000,000
Loans payable interest rate		1.00%
Paycheck Protection Program [Member]
Loans Payable (Details) [Line Items]
Proceeds from loans	$ 449,700
Line of credit, interest rate, description		The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business.

Accrued Expenses (Details) - Sc

Accrued Expenses (Details) - Schedule of accrued expenses - USD ($)	Nov. 30, 2020	Nov. 30, 2019
Schedule of accrued expenses [Abstract]
Commissions	$ 215,052	$ 233,784
Preferred stock dividends	151,569	146,569
Other accrued expenses	199,301	200,848
Total	$ 565,922	$ 581,201

Retirement Plan (Details)

Retirement Plan (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 30, 1997	Nov. 30, 2020	Nov. 30, 2019
Retirement Benefits [Abstract]
Total employee contributions	15.00%
Employer matching contribution percentage	20.00%
Employee deferral percentage	5.00%
Net assets for plan		$ 1,776,000
Pension expense		$ 2,995	$ 2,527
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.

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)

Mar. 14, 2011

Apr. 30, 2020

May 31, 2019

May 31, 2016

Jul. 31, 2015

Apr. 30, 2015

Oct. 31, 2014

Mar. 31, 2010

Feb. 28, 2006

Apr. 30, 2002

Apr. 30, 2001

Nov. 30, 2000

Nov. 30, 2020

Nov. 30, 2015

Nov. 30, 2019

Oct. 31, 2016

Aug. 31, 2010

Dec. 31, 2001

Feb. 29, 1996

Shareholders' Equity (Details) [Line Items]

Preferred stock, shares authorized

5,000,000

5,000,000

Dividend payable (in Dollars)

$ 151,569

Stock option, description

the Company granted stock options to (a) four non-employee directors to each purchase 15,000 shares of common stock, (b) one non-employee-director to purchase 25,000 shares of common stock, and (c) two Company officers to each purchase 50,000 shares of common stock at an exercise price of $1.41 per share, the market price of the common stock on the date of the grant. These options vest immediately and expire five years from the grant date. The Company recorded a cost of $154,534 related to the granting of these options.

Intrinsic value of exercisable options (in Dollars)

$ 227,300

Weighted average remaining life

3 years 94 days

2010 Incentive Stock Plan [Member] | Employee Stock Option [Member]

Shareholders' Equity (Details) [Line Items]

Number of common shares purchased for options granted

1,500,000

Incentive Stock 2015 Plan [Member]

Shareholders' Equity (Details) [Line Items]

Number of common shares purchased for options granted

47,207

Incentive Stock 2015 Plan [Member] | Employee Stock Option [Member]

Shareholders' Equity (Details) [Line Items]

Number of common shares purchased for options granted

1,500,000

Officer [Member] | Incentive Stock 2015 Plan [Member]

Shareholders' Equity (Details) [Line Items]

Issuance of shares as compensation, shares

99,151

Non Employee Director [Member] | Employee Stock Option [Member]

Shareholders' Equity (Details) [Line Items]

Compensation (in Dollars)

$ 3,500

Non Employee Director [Member] | Incentive Stock 2015 Plan [Member]

Shareholders' Equity (Details) [Line Items]

Number of common shares purchased for options granted

15,000

Cost issuance shares amount (in Dollars)

$ 21,150

Employee Stock Option [Member] | Incentive Stock 2015 Plan [Member]

Shareholders' Equity (Details) [Line Items]

Number of common shares purchased for options granted

27,500

Cost issuance shares amount (in Dollars)

$ 41,250

Non Employee Director [Member] | Employee Stock Option [Member]

Shareholders' Equity (Details) [Line Items]

Compensation (in Dollars)

$ 2,500

Preferred Stock [Member]

Shareholders' Equity (Details) [Line Items]

Preferred stock, shares authorized

5,000,000

1,000,000

Series C Preferred Stock [Member]

Shareholders' Equity (Details) [Line Items]

Preferred stock, shares authorized

100,000

100,000

100,000

Number of shares converted into common stock upon conversion

4,200

2,000

10

Preferred stock issued in payment of financial consulting services

70,000

Stock repurchased and cancelled

19,300

8,000

Number of shares transferred to company

252,000

Repurchased shares were cancelled (in Dollars)

$ 225,000

Repurchase of common shares, Shares

10,000

Accrued dividends (in Dollars)

$ 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

Preferred stock, shares issued

10,000

10,000

Preferred stock, shares outstanding

10,000

10,000

Series C Preferred Stock [Member] | Common Stock [Member]

Shareholders' Equity (Details) [Line Items]

Number of shares converted into common stock upon conversion

42,000

Series D Preferred Stock [Member]

Shareholders' Equity (Details) [Line Items]

Preferred stock, shares authorized

75,000

75,000

75,000

Preferred stock, shares issued

Preferred stock, shares outstanding

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Schedule of activity in the 2015 incentive stock plan - Equity Option [Member]	12 Months Ended
	Nov. 30, 2020$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding November 30, 2019 | shares	147,000
Options outstanding November 30, 2019 | $ / shares	$ 1.01
Options issued in the year ended November 30, 2020 | shares	185,000
Options issued in the year ended November 30, 2020 | $ / shares	$ 1.41
Options exercised in the year ended November 30, 2020 | shares	(75,000)
Options exercised in the year ended November 30, 2020 | $ / shares	$ (0.87)
Options cancelled in the year ended November 30, 2020 | shares	(2,000)
Options cancelled in the year ended November 30, 2020 | $ / shares	$ (1.15)
Options outstanding at November 30, 2020 | shares	255,000
Options outstanding at November 30, 2020 | $ / shares	$ 1.34
Options exercisable at November 30, 2020 | shares	255,000
Options exercisable at November 30, 2020 | $ / shares	$ 1.34

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Nov. 30, 2020USD ($)
Income Tax Disclosure [Abstract]
Valuation allowance for deferred tax assets	$ 543,000
Net operating loss carryforwards	$ 4,161,000

Income Taxes (Details) - Schedu

Income Taxes (Details) - Schedule of deferred income taxes - USD ($)	Nov. 30, 2020	Nov. 30, 2019
Deferred Tax Assets
Net operating loss	$ 1,066,794	$ 1,524,286
Allowance for bad debts	30,413	27,121
Inventory	60,746	60,746
Deferred rent	2,460	3,282
Other	97,673	62,071
Depreciation	63,632	65,402
Total deferred tax assets	1,321,718	1,742,908
Valuation allowance	(14,160)	(557,168)
Deferred Tax Assets	$ 1,307,558	$ 1,185,740

Income Taxes (Details) - Sche_2

Income Taxes (Details) - Schedule of income tax expense - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Current:
Federal
States	110,100	107,083
Current, total	110,100	107,083
Deferred:
Federal	(87,149)	(125,932)
States	(34,669)	(77,184)
Deferred, total	(121,818)	(203,116)
Provision for income taxes	$ (11,718)	$ (96,033)

Income Taxes (Details) - Sche_3

Income Taxes (Details) - Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Schedule of difference between expected income tax rate using statutory federal tax rate and company's effective rate [Abstract]
U.S Federal Income tax statutory rate	21.00%	21.00%
Valuation allowance	(27.00%)	(31.00%)
State income taxes	5.00%	5.00%
Other
Effective tax rate	(1.00%)	(5.00%)

Operating Lease Commitments (De

Operating Lease Commitments (Details) - USD ($)	1 Months Ended		12 Months Ended
	Dec. 31, 2022	Jun. 30, 2021	Nov. 30, 2020	Nov. 30, 2019
Operating Lease Commitments (Details) [Line Items]
Net rental expense			$ 390,285	$ 354,424
Related Parties [Member]
Operating Lease Commitments (Details) [Line Items]
Annual minimum rental payments			180,000
Net rental expense			$ 267,495	$ 264,137
Hong Kong [Member] | Subsequent Event [Member]
Operating Lease Commitments (Details) [Line Items]
Annual minimum rental payments	$ 36,840	$ 68,460

Operating Lease Commitments (_2

Operating Lease Commitments (Details) - Schedule of future minimum rental commitments	Nov. 30, 2020USD ($)
Schedule of future minimum rental commitments [Abstract]
2021	$ 233,546
2022	194,352
2023	196,239
2024	202,204
2025	205,227
2021	1,108,281
Future minimum rental commitments	$ 2,139,849

Employment and Other Agreemen_2

Employment and Other Agreements (Details)	1 Months Ended	12 Months Ended
	Feb. 29, 2016USD ($)	Nov. 30, 2020
Employment and Other Agreements (Details) [Line Items]
Number of officers involved in employment agreements	2
Compensation, description		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.
Employment agreements termination, description		one year following termination.
One Officer [Member]
Employment and Other Agreements (Details) [Line Items]
Base salary	$ 275,000
Other Officer [Member]
Employment and Other Agreements (Details) [Line Items]
Base salary	$ 225,000

Major Customers (Details)

Major Customers (Details)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Net sales [Member]
Major Customers (Details) [Line Items]
Number of Customers	2	2
Accounts Receivable [Member]
Major Customers (Details) [Line Items]
Number of Customers	1	1
Customer One [Member] | Net sales [Member]
Major Customers (Details) [Line Items]
Percentage of concentration risk	17.00%
Customer One [Member] | Accounts Receivable [Member]
Major Customers (Details) [Line Items]
Percentage of concentration risk	28.00%	18.00%
Customer Two [Member] | Net sales [Member]
Major Customers (Details) [Line Items]
Percentage of concentration risk	15.00%	12.00%
Customer Two [Member] | Net sales [Member]
Major Customers (Details) [Line Items]
Percentage of concentration risk		14.00%

Major Suppliers (Details)

Major Suppliers (Details)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Major Suppliers (Details) [Line Items]
Number of foreign supplier	1	1
Supplier Concentration Risk [Member] | Major Suppliers [Member] | Total Inventory Purchased [Member]
Major Suppliers (Details) [Line Items]
Percentage of inventory purchased of products	39.00%	38.00%
Supplier Concentration Risk [Member] | Taiwan [Member] | Total Inventory Purchased [Member]
Major Suppliers (Details) [Line Items]
Percentage of inventory purchased of products	45.00%
Supplier Concentration Risk [Member] | Hong Kong [Member] | Total Inventory Purchased [Member]
Major Suppliers (Details) [Line Items]
Percentage of inventory purchased of products	16.00%
Supplier Concentration Risk [Member] | Elsewhere In Asia [Member] | Total Inventory Purchased [Member]
Major Suppliers (Details) [Line Items]
Percentage of inventory purchased of products	34.00%
Supplier Concentration Risk [Member] | Overseas Outside of Asia [Member] | Total Inventory Purchased [Member]
Major Suppliers (Details) [Line Items]
Percentage of inventory purchased of products	1.00%

Export Sales (Details) - Schedu

Export Sales (Details) - Schedule of export sales - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Canada [Member]
Revenue from External Customer [Line Items]
Export sales	$ 4,214,031	$ 4,233,319
China [Member]
Revenue from External Customer [Line Items]
Export sales	5,778,321	5,828,541
Other Asian Countries [Member]
Revenue from External Customer [Line Items]
Export sales	1,989,028	2,109,843
South America [Member]
Revenue from External Customer [Line Items]
Export sales	180,474	527,183
Europe [Member]
Revenue from External Customer [Line Items]
Export sales	$ 1,207,560	$ 1,390,715