Surge Components (SPRS) 10-Q15 Oct 242024 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	Aug. 31, 2024	Oct. 11, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Aug. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Information [Line Items]
Entity Registrant Name	SURGE COMPONENTS, INC.
Entity Central Index Key	0000747540
Entity File Number	000-27688
Entity Tax Identification Number	11-2602030
Entity Incorporation, State or Country Code	NV
Current Fiscal Year End Date	--11-30
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Incorporation, Date of Incorporation	Nov. 24, 1981
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	95 East Jefryn Boulevard
Entity Address, City or Town	Deer Park
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11729
Entity Phone Fax Numbers [Line Items]
City Area Code	(631)
Local Phone Number	595-1818
Entity Listings [Line Items]
Title of 12(b) Security	None
No Trading Symbol Flag	true
Entity Common Stock, Shares Outstanding		5,582,783

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Aug. 31, 2024	Nov. 30, 2023
Current assets:
Cash	$ 4,146,717	$ 7,634,799
Marketable securities	7,822,358	3,204,772
Accounts receivable - net of allowance for credit losses of $80,297 and $79,341	5,600,916	6,097,411
Inventory, net	5,710,294	5,422,824
Prepaid expenses and income taxes	462,427	520,104
Total current assets	23,742,712	22,879,910
Fixed assets – net of accumulated depreciation and amortization of $1,810,560 and $1,757,772	128,323	170,120
Operating lease right of use asset	1,125,558	1,350,998
Deferred income taxes	239,024	241,328
Other assets	34,299	34,299
Total assets	25,269,916	24,676,655
Current liabilities:
Accounts payable	3,549,402	3,216,590
Operating lease liabilities, current maturities	342,775	351,957
Accrued expenses and taxes	567,199	735,383
Accrued salaries	539,228	667,058
Total current liabilities	4,998,604	4,970,988
Operating lease liabilities net of current maturities	936,790	1,136,766
Total liabilities	5,935,394	6,107,754
Commitments and contingencies
Shareholders’ equity:
Preferred stock value
Common stock - $.001 par value, 50,000,000 shares authorized, 5,582,783 and 5,577,698 shares issued and outstanding	5,581	5,576
Additional paid-in capital	17,725,520	17,710,525
Accumulated other comprehensive income – unrealized gain on marketable debt securities	186,159	828
Accumulated equity	1,417,252	851,962
Total shareholders’ equity	19,334,522	18,568,901
Total liabilities and shareholders’ equity	25,269,916	24,676,655
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 (Parentheticals) - USD ($)	Aug. 31, 2024	Nov. 30, 2023
Net of allowance for credit losses (in Dollars)	$ 80,297	$ 79,341
Net of accumulated depreciation and amortization (in Dollars)	$ 1,810,560	$ 1,757,772
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	5,582,783	5,577,698
Common stock, shares outstanding	5,582,783	5,577,698
Series C Preferred Stock
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	10,000	10,000
Preferred stock, shares outstanding	10,000	10,000
Preferred stock, liquidation preference per share (in Dollars per share)	$ 5	$ 5
Series D Preferred Stock
Preferred stock, shares authorized	75,000	75,000
Preferred stock, shares issued
Preferred stock, shares outstanding

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
Consolidated Statements of Operations (Unaudited) - USD ($)	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Income Statement [Abstract]
Net sales	$ 7,970,316	$ 8,857,859	$ 22,369,017	$ 28,248,853
Cost of goods sold	5,482,746	6,561,858	15,836,754	20,382,092
Gross profit	2,487,570	2,296,001	6,532,263	7,866,761
Operating expenses:
Selling and shipping expenses	683,894	748,920	2,028,864	2,259,745
General and administrative expenses	1,250,294	1,316,604	3,887,238	4,106,287
Depreciation and amortization	18,020	17,505	52,788	52,516
Total operating expenses	1,952,208	2,083,029	5,968,890	6,418,548
Income before other income (expense) and income taxes	535,362	212,972	563,373	1,448,213
Other income (expense):
Investment income	88,120	32,878	241,300	62,144
Interest expense
Other income (expense)	88,120	32,878	241,300	62,144
Income before income taxes	623,482	245,850	804,673	1,510,357
Income taxes	179,130	112,570	234,383	457,656
Net income	444,352	133,280	570,290	1,052,701
Dividends on preferred stock	2,500	2,500	5,000	5,000
Net income available to common shareholders	$ 441,852	$ 130,780	$ 565,290	$ 1,047,701
Net income per share available to common shareholders:
Basic (in Dollars per share)	$ 0.08	$ 0.02	$ 0.10	$ 0.19
Diluted (in Dollars per share)	$ 0.08	$ 0.02	$ 0.10	$ 0.18
Weighted Shares Outstanding:
Basic (in Shares)	5,582,783	5,569,521	5,580,342	5,556,049
Diluted (in Shares)	5,762,806	5,766,084	5,760,365	5,752,611

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Statement of Comprehensive Income [Abstract]
Net Income	$ 444,352	$ 133,280	$ 570,290	$ 1,052,701
Other Comprehensive Income:
Reclassification of realized gain on investment securities	(200)		(200)
Unrealized gain on marketable debt securities net of tax	148,511	3,596	186,159	3,596
Net comprehensive income	$ 592,663	$ 136,876	$ 756,249	$ 1,056,297

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity-Unaudited - USD ($)	Preferred Series C	Common	Additional Paid-In Capital	Other Comprehensive Income	Accumulated Equity (Deficit)	Total
Balance beginning at Nov. 30, 2022	$ 10	$ 5,541	$ 17,613,060		$ (115,148)	$ 17,503,463
Balance beginning (in Shares) at Nov. 30, 2022	10,000	5,541,342
Preferred stock dividends					(5,000)	(5,000)
Issuance of shares as compensation		$ 28	97,472			97,500
Issuance of shares as compensation (in Shares)		28,179
Stock option issuance				3,596		3,596
Net income					1,052,701	1,052,701
Balance ending at Aug. 31, 2023	$ 10	$ 5,569	17,710,532	3,596	932,553	18,652,260
Balance ending (in Shares) at Aug. 31, 2023	10,000	5,569,521
Balance beginning at Nov. 30, 2023	$ 10	$ 5,576	17,710,525	828	851,962	18,568,901
Balance beginning (in Shares) at Nov. 30, 2023	10,000	5,577,698
Preferred stock dividends					(5,000)	(5,000)
Issuance of shares as compensation		$ 5	14,995			15,000
Issuance of shares as compensation (in Shares)		5,085
Change in unrealized gain on marketable securities				185,331		185,331
Stock option exercise
Net income					570,290	570,290
Balance ending at Aug. 31, 2024	$ 10	$ 5,581	$ 17,725,520	$ 186,159	$ 1,417,252	$ 19,334,522
Balance ending (in Shares) at Aug. 31, 2024	10,000	5,582,783

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
Consolidated Statements of Cash Flows (Unaudited) - USD ($)	Aug. 31, 2024	Aug. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 570,290	$ 1,052,701
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	52,788	52,516
Gain on marketable securities	(200)
Deferred income taxes	2,304	(9,191)
Allowance for doubtful accounts	956
Stock Compensation Expense	15,000	97,500
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable	495,539	(57,590)
Inventory	(287,470)	765,806
Prepaid expenses and income taxes	57,677	135,809
Other assets	16,282	20,410
Accounts payable	332,812	(511,341)
Accrued expenses	(301,014)	(277,037)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	954,964	1,269,583
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets	(10,991)	(31,851)
Acquisition of marketable securities	(6,052,055)	(3,970,687)
Proceeds from the sale of marketable securities	1,620,000
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(4,443,046)	(4,002,538)
CASH FLOWS FROM FINANCING ACTIVITIES:
NET CASH FLOWS FROM FINANCING ACTIVITIES
NET CHANGE IN CASH	(3,488,082)	(2,732,955)
CASH AT BEGINNING OF PERIOD	7,634,799	8,690,040
CASH AT END OF PERIOD	4,146,717	5,957,085
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	257,295	672,248
Interest paid
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, 2024
Organization, Description of Company’s Business and Basis of Presentation [Abstract]
ORGANIZATION, DESCRIPTION OF COMPANY’S BUSINESS AND BASIS OF PRESENTATION	NOTE A – ORGANIZATION, DESCRIPTION OF COMPANY’S BUSINESS AND BASIS OF PRESENTATION Surge Components, Inc. (“Surge”) was incorporated in the State of New York and commenced operations on November 24, 1981 as an importer of electronic products, primarily capacitors and discrete semi-conductors selling to customers located principally throughout North America. On June 24, 1988, Surge formed Challenge/Surge Inc. (“Challenge”), a wholly-owned subsidiary to engage in the sale of electronic component products and sounding devices from established brand manufacturers to customers located principally throughout North America. In May 2002, Surge and an officer of Surge founded and became sole owners of Surge Components, Limited (“Surge Limited”), a Hong Kong corporation. Under current Hong Kong law, Surge Limited is required to have at least two shareholders. Surge owns 999 shares of the outstanding common stock and the officer of Surge owns 1 share of the outstanding common stock. The officer of Surge has assigned his rights regarding his 1 share to Surge. Surge Limited started doing business in July 2002. Surge Limited operations have been consolidated with the Company. Surge Limited is responsible for the sale of Surge’s products to customers located in Asia. On August 31, 2010, the Company changed its corporate domicile by merging into a newly-formed corporation, Surge Components, Inc. (Nevada), which was formed in the State of Nevada for that purpose. Surge Components Inc. is the surviving entity. 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. In December 2021, the Company changed its corporate domicile to Nevada.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Aug. 31, 2024
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (1) Principles of Consolidation The consolidated financial statements include the accounts of Surge, Challenge, and Surge Limited (collectively the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The accompanying interim consolidated financial statements have been prepared without audit in accordance with the instructions to Form 10Q for interim financial reporting and the rules and regulations of the Securities and Exchange Commissions. In the opinion of management, all adjustments are of a normal recurring nature and all disclosures necessary for a fair presentation of these financial statements have been included. The results and trends in these interim consolidated financial statements for the nine months ended August 31, 2024 and August 31, 2023 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 net of the allowance for credit losses in the consolidated balance sheet and are not interest bearing. The Company considers receivables past due based on the payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base, bad debts to date have not been material. Repayment terms vary from customer to customer and range from 15 days to 120 days. (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 $3,844,000 and $1,972,000 for the nine months ended August 31, 2024 and August 31, 2023 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 $73,235 and $135,130 for the nine months ended August 31, 2024 and August 31, 2023 respectively. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company and its subsidiaries currently have agreements with several distributors. There are no provisions for the granting of price concessions in any of the agreements. Revenues under these distribution agreements were approximately $3,587,000 and $6,358,000 for the nine months ended August 31, 2024 and August 31, 2023 respectively. (4) Inventories Inventories, which consist solely of products held for resale, are stated at the lower of cost (first-in, first-out method) or net realizable value. Products are included in inventory when the Company obtains title and risk of loss on the products, primarily when shipped from the supplier. Inventory in transit principally from foreign suppliers at August 31, 2024 was $841,789. The Company, at August 31, 2024, has a reserve against slow moving and obsolete inventory of $440,646. From time to time the Company’s products are subject to legislation from various authorities on environmental matters. (5) Depreciation and Amortization Fixed assets are recorded at cost. Depreciation is generally calculated on a straight line method and amortization of leasehold improvements is provided for on the straight-line method over the estimated useful lives of the various assets as follows: Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter Maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. (6) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At August 31, 2024 and November 30, 2023, the Company’s uninsured cash balances totaled $3,082,221 and $6,569,806, respectively. The decrease in cash balances is due to an increase in the investment in marketable securities as partially offset by cash from the Company’s operations. (7) Income Taxes The Company’s deferred income taxes arise primarily from the differences in the recording of allowances for bad debts, inventory reserves, depreciation and other expenses 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 H. 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, 2021, and state tax examinations for years before fiscal years ending November 30, 2020. Management does not believe there will be any material changes in our unrecognized tax positions over the next twelve months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740, there was no accrued interest or penalties associated with any unrecognized benefits, nor was any interest expense recognized during the nine months ended August 31, 2024 and August 31, 2023. (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) Marketable securities and other investments Our marketable securities are stated at fair value in accordance with ASC Topic 321, Investments- Equity Securities The value of these marketable securities at August 31, 2024 and November 30, 2023 is as follows: August 31, November 30, 2024 2023 Cost $ 7,636,199 $ 3,203,944 Gross unrealized gain 186,159 828 Gross unrealized loss - - Fair value $ 7,822,358 $ 3,204,772 (13) Shipping Costs The Company classifies shipping costs as a component of selling expenses. Shipping costs totaled $2,022 and $1,572 for nine months ended August 31, 2024 and August 31, 2023 respectively. (14) 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 August 31, 2024 and August 31, 2023 totaled 279,977 and 263,438, respectively. (15) 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. (16) Leases On December 1, 2019, the Company adopted the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) The Company determines if a contract contains a lease at inception based on whether it conveys the right to control the use of an identified asset. Substantially all of the Company’s leases are classified as operating leases. The Company records operating lease right-of-use assets within “Other assets” and lease liabilities are recorded within “current and noncurrent liabilities” in the consolidated balance sheets. Lease expenses are recorded within “General and administrative expenses” in the consolidated statements of operations. Operating lease payments are presented within “Operating cash flows” in the consolidated statements of cash flows. Operating lease right-of-use assets and lease liabilities are recognized based on the net present value of future minimum lease payments over the lease term starting on the commencement date. The Company generally is not able to determine the rate implicit in its leases and, as such, applies an incremental borrowing rate based on the Company’s cost of borrowing for the relevant terms of each lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include an option to extend or terminate a lease if it is reasonably certain that the Company will exercise such options. The Company has elected the practical expedient to not separate lease components from non-lease components, and also has elected not to record a right-of-use asset or lease liability for leases which, at inception, have a term of twelve months or less. Variable lease payments are recognized in the period in which the obligation for those payments is incurred.

Fixed Assets

Fixed Assets	9 Months Ended
Fixed Assets	Aug. 31, 2024
Fixed Assets [Abstract]
FIXED ASSETS	NOTE C – FIXED ASSETS Fixed assets consist of the following: August 31, November 30, 2024 2023 Furniture and Fixtures $ 329,186 $ 329,186 Leasehold Improvements 1,078,985 1,070,044 Computer Equipment 530,712 528,662 Less-Accumulated Depreciation (1,810,560 ) (1,757,772 ) Net Fixed Assets $ 128,323 $ 170,120 Depreciation and amortization expense for the nine months ended August 31, 2024 and August 31, 2023 was $52,788 and $52,516, respectively.

Loans Payable

Loans Payable	9 Months Ended
Loans Payable	Aug. 31, 2024
Loans Payable [Abstract]
LOANS PAYABLE	NOTE D – 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 August 31, 2024, the balance on the Credit Line was $0. As of August 31, 2024, the Company was in compliance with the covenant for the debt service coverage ratio for the Credit Line. Effective July 1, 2023, the use of the LIBOR rate was discontinued and replaced with the secured overnight financing rate (SOFR).

Accrued Expenses

Accrued Expenses	9 Months Ended
Accrued Expenses	Aug. 31, 2024
Accrued Expenses [Abstract]
ACCRUED EXPENSES	NOTE E – ACCRUED EXPENSES Accrued expenses consist of the following: August 31, November 30, 2024 2023 Commissions $ 220,701 $ 229,882 Preferred stock dividends 171,569 166,569 Other accrued expenses 174,929 338,932 $ 567,199 $ 735,383

Retirement Plan

Retirement Plan	9 Months Ended
Retirement Plan	Aug. 31, 2024
Retirement Plan [Abstract]
RETIREMENT PLAN	NOTE F – 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 Axa Equitable, Inc., which maintains the plan’s records, were approximately $2,069,000 at November 30, 2023. Pension expense for the nine months ended August 31, 2024 and August 31, 2023 was $32,645 and $26,751, respectively.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
Shareholders' Equity	Aug. 31, 2024
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE G – 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. Dividends aggregating $171,569 have not been paid for the semi-annual periods ended December 31, 2001 through the semi-annual payment due June 30, 2024. The Company has accrued these dividends. At August 31, 2024 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 [2] 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 April 2021, a total of 26,786 shares were issued to the Company’s officers as a part of their 2021 bonus compensation under the 2015 stock plan. The Company recorded a cost of $75,000 relating to the issuance of these shares in the second quarter of 2021. In March 2022, a total of 26,000 shares were issued to the Company’s officers as part of their bonus compensation under the 2015 stock plan. The Company recorded a cost of $97,500 relating to the issuance of these shares in the second quarter of 2022. In March 2022, the Company granted stock options to (a) four non-employee directors to each purchase 20,000 shares of common stock, (b) one non-employee-director to purchase 30,000 shares of common stock, and (c) two Company officers to each purchase 40,000 shares of common stock at an exercise price of $3.55 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 $492,132 related to the granting of these options. In April 2023, a total of 28,179 shares were issued to the Company’s officers as part of their bonus compensation under the 2015 stock plan. The Company recorded a cost of $97,500 relating to the issuance of these shares in the second quarter of 2023. In April 2024, a total of 5,085 shares were issued to one of the Company’s officers as part of their bonus compensation under the 2015 stock plan. The Company recorded a cost of $15,000 relating to the issuance of these shares in the second quarter of 2024. Activity in the Company’s stock plans for the period ended August 31, 2024 is summarized as follows: Shares Weighted Options outstanding December 1, 2023 345,000 $ 2.59 Options issued in the nine months ended August 31, 2024 - $ - Options exercised in the nine months ended August 31, 2024 - $ - Options cancelled in the nine months ended August 31, 2024 - $ - Options outstanding at August 31, 2024 345,000 $ 2.59 Options exercisable at August 31, 2024 345,000 $ 2.59 The intrinsic value of the exercisable options at August 31, 2024 totaled $141,050. At August 31, 2024 the weighted average remaining life of the stock options is 1.69 years. At August 31, 2024 there was no unrecognized compensation cost related to the stock options granted under the plan. [3] Compensation of Directors Compensation for each non-employee director is $3,000 per month (and $4,000 per month for a non-employee director that serves as the chairman of more than two committees of the Board of Directors).

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Aug. 31, 2024
Income Taxes [Abstract]
INCOME TAXES	NOTE H – 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, 2024 2023 Deferred Tax Assets Depreciation $ 41,589 $ 35,684 Allowance for bad debts 17,493 17,309 Inventory 84,450 84,450 Facilities rental 38,954 35,473 Other 56,538 68,412 Total deferred tax assets 239,024 241,328 Valuation allowance - - Deferred Tax Assets $ 239,024 $ 241,328 A 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 Company’s income tax expense consists of the following: Nine Months Ended August 31, August 31, Current: Federal $ 166,746 $ 322,894 States 69,941 125,571 236,687 448,465 Deferred: Federal (1,659 ) 6,618 States (645 ) 2,573 (2,304 ) 9,191 Provision for income taxes $ 234,383 $ 457,656 The Company files a consolidated income tax return with its wholly-owned subsidiaries. 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, 2024 2023 U.S Federal Income tax statutory rate 21 % 21 % State income taxes 5 % 5 % Other-primarily state franchise taxes 3 % 4 % Effective tax rate 29 % 30 %

Operating Lease Commitments

Operating Lease Commitments	9 Months Ended
Operating Lease Commitments	Aug. 31, 2024
Operating Lease Commitments [Abstract]
OPERATING LEASE COMMITMENTS	NOTE I – OPERATING LEASE COMMITMENTS The Company leases its office and warehouse space through 2030 from a corporation that is partly owned by officers/shareholders of the Company (“Related Company”). Annual minimum rental payments to the Related Company approximated $194,000 for the year ended November 30, 2023, 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 2025. Annual minimum rental payments for this space are approximately $73,580. The Company has a lease to rent additional warehouse space in Hong Kong through November 30, 2025. Annual minimum rental payments for this space are approximately $76,170. The Company’s future minimum rental commitments at August 31, 2024 are as follows: Twelve Months Ended August 31, 2025 $ 342,775 2026 228,385 2027 213,518 2028 217,788 2029 222,144 2030 and after 245,500 $ 1,470,110 Net rental expense for the nine months ended August 31, 2024 and August 31, 2023 were $340,563 and $342,702 respectively, of which $211,667 and $208,703 respectively, was paid to the Related Company. The remaining weighted average lease term is 5.25 years at August 31, 2024. The weighted average discount rate is 5.25% at August 31, 2024.

Employment and Other Agreements

Employment and Other Agreements	9 Months Ended
Employment and Other Agreements	Aug. 31, 2024
Employment and Other Agreements [Abstract]
EMPLOYMENT AND OTHER AGREEMENTS	NOTE J – 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. In May of 2021, the base salaries were raised from $300,000 for one officer and $250,000 for the other officer. In April 2024, the base salaries for the two officers were amended to $330,000 for one officer and $275,000 for the other officer. 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
Major Customers	Aug. 31, 2024
Major Customers [Abstract]
MAJOR CUSTOMERS	NOTE K – MAJOR CUSTOMERS The Company had three customers who respectively accounted for 18%, 15% and 10% of net sales for the nine months ended August 31, 2024 and two customers who accounted for 20% and 17% of net sales for the nine months ended August 31, 2023. The Company had one customer who accounted for 33% of accounts receivable at August 31, 2024 and one customer who accounted for 30% of accounts receivable at August 31, 2023.

Major Suppliers

Major Suppliers	9 Months Ended
Major Suppliers	Aug. 31, 2024
Major Suppliers [Abstract]
MAJOR SUPPLIERS	NOTE L – MAJOR SUPPLIERS During the nine months ended August 31, 2024 and August 31, 2023 there was one foreign supplier accounting for 28% and 31% of total inventory purchased. The Company purchases substantially all of its products overseas. For the nine months ended August 31, 2024, the Company purchased 30% of its products from Taiwan, 15% from Hong Kong, 49% from elsewhere in Asia. The Company purchases the balance of its products in the United States.

Export Sales

Export Sales	9 Months Ended
Export Sales	Aug. 31, 2024
Export Sales [Abstract]
EXPORT SALES	NOTE M – EXPORT SALES The Company’s export sales were as follows: Nine Months Ended August 31, August 31, 2024 2023 Canada 2,423,130 4,566,475 China 4,068,618 4,368,805 Other Asian Countries 596,791 1,088,886 South America 73,741 145,240 Europe 716,294 843,719 Mexico 21,500 - Revenues are attributed to countries based on location of customer.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($)	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 444,352	$ 133,280	$ 570,290	$ 1,052,701

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Aug. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
Accounting Policies, by Policy (Policies)	Aug. 31, 2024
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	(1) Principles of Consolidation The consolidated financial statements include the accounts of Surge, Challenge, and Surge Limited (collectively the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The accompanying interim consolidated financial statements have been prepared without audit in accordance with the instructions to Form 10Q for interim financial reporting and the rules and regulations of the Securities and Exchange Commissions. In the opinion of management, all adjustments are of a normal recurring nature and all disclosures necessary for a fair presentation of these financial statements have been included. The results and trends in these interim consolidated financial statements for the nine months ended August 31, 2024 and August 31, 2023 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 net of the allowance for credit losses in the consolidated balance sheet and are not interest bearing. The Company considers receivables past due based on the payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Based on the Company’s operating history and customer base, bad debts to date have not been material. Repayment terms vary from customer to customer and range from 15 days to 120 days.
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 $3,844,000 and $1,972,000 for the nine months ended August 31, 2024 and August 31, 2023 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 $73,235 and $135,130 for the nine months ended August 31, 2024 and August 31, 2023 respectively. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company and its subsidiaries currently have agreements with several distributors. There are no provisions for the granting of price concessions in any of the agreements. Revenues under these distribution agreements were approximately $3,587,000 and $6,358,000 for the nine months ended August 31, 2024 and August 31, 2023 respectively.
Inventories	(4) Inventories Inventories, which consist solely of products held for resale, are stated at the lower of cost (first-in, first-out method) or net realizable value. Products are included in inventory when the Company obtains title and risk of loss on the products, primarily when shipped from the supplier. Inventory in transit principally from foreign suppliers at August 31, 2024 was $841,789. The Company, at August 31, 2024, has a reserve against slow moving and obsolete inventory of $440,646. From time to time the Company’s products are subject to legislation from various authorities on environmental matters.
Depreciation and Amortization	(5) Depreciation and Amortization Fixed assets are recorded at cost. Depreciation is generally calculated on a straight line method and amortization of leasehold improvements is provided for on the straight-line method over the estimated useful lives of the various assets as follows: Furniture, fixtures and equipment 5 - 7 years Computer equipment 5 years Leasehold Improvements Estimated useful life or lease term, whichever is shorter Maintenance and repairs are expensed as incurred while renewals and betterments are capitalized.
Concentration of Credit Risk	(6) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains substantially all of its cash balances in a limited number of financial institutions. At August 31, 2024 and November 30, 2023, the Company’s uninsured cash balances totaled $3,082,221 and $6,569,806, respectively. The decrease in cash balances is due to an increase in the investment in marketable securities as partially offset by cash from the Company’s operations.
Income Taxes	(7) Income Taxes The Company’s deferred income taxes arise primarily from the differences in the recording of allowances for bad debts, inventory reserves, depreciation and other expenses 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 H. 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, 2021, and state tax examinations for years before fiscal years ending November 30, 2020. Management does not believe there will be any material changes in our unrecognized tax positions over the next twelve months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740, there was no accrued interest or penalties associated with any unrecognized benefits, nor was any interest expense recognized during the nine months ended August 31, 2024 and August 31, 2023.
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.
Marketable securities and other investments	(12) Marketable securities and other investments Our marketable securities are stated at fair value in accordance with ASC Topic 321, Investments- Equity Securities The value of these marketable securities at August 31, 2024 and November 30, 2023 is as follows: August 31, November 30, 2024 2023 Cost $ 7,636,199 $ 3,203,944 Gross unrealized gain 186,159 828 Gross unrealized loss - - Fair value $ 7,822,358 $ 3,204,772
Shipping Costs	(13) Shipping Costs The Company classifies shipping costs as a component of selling expenses. Shipping costs totaled $2,022 and $1,572 for nine months ended August 31, 2024 and August 31, 2023 respectively.
Earnings Per Share	(14) 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 August 31, 2024 and August 31, 2023 totaled 279,977 and 263,438, respectively.
Stock Based Compensation	(15) 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	(16) Leases On December 1, 2019, the Company adopted the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) The Company determines if a contract contains a lease at inception based on whether it conveys the right to control the use of an identified asset. Substantially all of the Company’s leases are classified as operating leases. The Company records operating lease right-of-use assets within “Other assets” and lease liabilities are recorded within “current and noncurrent liabilities” in the consolidated balance sheets. Lease expenses are recorded within “General and administrative expenses” in the consolidated statements of operations. Operating lease payments are presented within “Operating cash flows” in the consolidated statements of cash flows. Operating lease right-of-use assets and lease liabilities are recognized based on the net present value of future minimum lease payments over the lease term starting on the commencement date. The Company generally is not able to determine the rate implicit in its leases and, as such, applies an incremental borrowing rate based on the Company’s cost of borrowing for the relevant terms of each lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include an option to extend or terminate a lease if it is reasonably certain that the Company will exercise such options. The Company has elected the practical expedient to not separate lease components from non-lease components, and also has elected not to record a right-of-use asset or lease liability for leases which, at inception, have a term of twelve months or less. Variable lease payments are recognized in the period in which the obligation for those payments is incurred.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
Summary of Significant Accounting Policies (Tables)	Aug. 31, 2024
Summary of Significant Accounting Policies [Abstract]
Schedule of Estimated Useful Lives of the Various Assets	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
Schedule of Value of these Marketable Securities	The value of these marketable securities at August 31, 2024 and November 30, 2023 is as follows: August 31, November 30, 2024 2023 Cost $ 7,636,199 $ 3,203,944 Gross unrealized gain 186,159 828 Gross unrealized loss - - Fair value $ 7,822,358 $ 3,204,772

Fixed Assets (Tables)

Fixed Assets (Tables)	9 Months Ended
Fixed Assets (Tables)	Aug. 31, 2024
Fixed Assets [Abstract]
Schedule of Fixed Assets	Fixed assets consist of the following: August 31, November 30, 2024 2023 Furniture and Fixtures $ 329,186 $ 329,186 Leasehold Improvements 1,078,985 1,070,044 Computer Equipment 530,712 528,662 Less-Accumulated Depreciation (1,810,560 ) (1,757,772 ) Net Fixed Assets $ 128,323 $ 170,120

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
Accrued Expenses (Tables)	Aug. 31, 2024
Accrued Expenses [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following: August 31, November 30, 2024 2023 Commissions $ 220,701 $ 229,882 Preferred stock dividends 171,569 166,569 Other accrued expenses 174,929 338,932 $ 567,199 $ 735,383

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
Shareholders' Equity (Tables)	Aug. 31, 2024
Shareholders' Equity [Abstract]
Schedule of Stock Plans	Activity in the Company’s stock plans for the period ended August 31, 2024 is summarized as follows: Shares Weighted Options outstanding December 1, 2023 345,000 $ 2.59 Options issued in the nine months ended August 31, 2024 - $ - Options exercised in the nine months ended August 31, 2024 - $ - Options cancelled in the nine months ended August 31, 2024 - $ - Options outstanding at August 31, 2024 345,000 $ 2.59 Options exercisable at August 31, 2024 345,000 $ 2.59

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Aug. 31, 2024
Income Taxes [Abstract]
Schedule of Deferred Income Taxes	The Company’s deferred income taxes are comprised of the following: August 31, November 30, 2024 2023 Deferred Tax Assets Depreciation $ 41,589 $ 35,684 Allowance for bad debts 17,493 17,309 Inventory 84,450 84,450 Facilities rental 38,954 35,473 Other 56,538 68,412 Total deferred tax assets 239,024 241,328 Valuation allowance - - Deferred Tax Assets $ 239,024 $ 241,328
Schedule of Income Tax Expense	The Company’s income tax expense consists of the following: Nine Months Ended August 31, August 31, Current: Federal $ 166,746 $ 322,894 States 69,941 125,571 236,687 448,465 Deferred: Federal (1,659 ) 6,618 States (645 ) 2,573 (2,304 ) 9,191 Provision for income taxes $ 234,383 $ 457,656
Schedule of Reconciliation Effective Tax Rate	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, 2024 2023 U.S Federal Income tax statutory rate 21 % 21 % State income taxes 5 % 5 % Other-primarily state franchise taxes 3 % 4 % Effective tax rate 29 % 30 %

Operating Lease Commitments (Ta

Operating Lease Commitments (Tables)	9 Months Ended
Operating Lease Commitments (Tables)	Aug. 31, 2024
Operating Lease Commitments [Abstract]
Schedule of Future Minimum Rental Commitments	The Company’s future minimum rental commitments at August 31, 2024 are as follows: 2025 $ 342,775 2026 228,385 2027 213,518 2028 217,788 2029 222,144 2030 and after 245,500 $ 1,470,110

Export Sales (Tables)

Export Sales (Tables)	9 Months Ended
Export Sales (Tables)	Aug. 31, 2024
Export Sales [Abstract]
Schedule of Export Sales	The Company’s export sales were as follows: Nine Months Ended August 31, August 31, 2024 2023 Canada 2,423,130 4,566,475 China 4,068,618 4,368,805 Other Asian Countries 596,791 1,088,886 South America 73,741 145,240 Europe 716,294 843,719 Mexico 21,500 -

Organization, Description of _2

Organization, Description of Company’s Business and Basis of Presentation (Details)	1 Months Ended		9 Months Ended
	Feb. 28, 2019 shares	May 31, 2002 shares	Aug. 31, 2024
Organization, Description of Company’s Business and Basis of Presentation [Abstract]
Date of incorporate			Nov. 24, 1981
Number of shareholders to hold equity		2
Number of shares outstanding - held by surge		999
Number of shares outstanding common stock		1
Ownership rights transferred to parent company		1
Decrease in common stock shares authorized	50,000,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	9 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Nov. 30, 2023
Summary of Significant Accounting Policies [Line Items]
Direct shipments	$ 3,844,000	$ 1,972,000
Commission revenue	73,235	135,130
Revenues distribution agreements	3,587,000	6,358,000
Inventory in transit from foreign suppliers	841,789
Reserve against slow moving and obsolete inventory	440,646
Amount of uninsured cash balances	3,082,221		$ 6,569,806
Shipping costs	$ 2,022	$ 1,572
Diluted weighted shares outstanding (in Shares)	279,977	263,438
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Repayment terms	15 days
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Repayment terms	120 days

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Various Assets	Aug. 31, 2024
Computer equipment [Member]
Schedule of Estimated Useful Lives of the Various Assets [Line Items]
Estimated useful lives of assets	5 years
Leasehold Improvements [Member]
Schedule of Estimated Useful Lives of the Various Assets [Line Items]
Estimated useful lives of assets	Estimated useful life or lease term, whichever is shorter
Minimum [Member] \| Furniture, fixtures and equipment [Member]
Schedule of Estimated Useful Lives of the Various Assets [Line Items]
Estimated useful lives of assets	5 years
Maximum [Member] \| Furniture, fixtures and equipment [Member]
Schedule of Estimated Useful Lives of the Various Assets [Line Items]
Estimated useful lives of assets	7 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details) - Schedule of Value of these Marketable Securities - USD ($)	Aug. 31, 2024	Nov. 30, 2023
Schedule of Value of these Marketable Securities [Abstract]
Cost	$ 7,636,199	$ 3,203,944
Gross unrealized gain	186,159	828
Gross unrealized loss
Fair value	$ 7,822,358	$ 3,204,772

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
Fixed Assets (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Fixed Assets [Abstract]
Depreciation and amortization expense	$ 18,020	$ 17,505	$ 52,788	$ 52,516

Fixed Assets (Details) - Schedu

Fixed Assets (Details) - Schedule of Fixed Assets - USD ($)	Aug. 31, 2024	Nov. 30, 2023
Schedule of Fixed Assets [Abstract]
Furniture and Fixtures	$ 329,186	$ 329,186
Leasehold Improvements	1,078,985	1,070,044
Computer Equipment	530,712	528,662
Less-Accumulated Depreciation	(1,810,560)	(1,757,772)
Net Fixed Assets	$ 128,323	$ 170,120

Loans Payable (Details)

Loans Payable (Details) - USD ($)	Feb. 28, 2017	Aug. 31, 2024
Loans Payable [Line Items]
Interest payable	3%
Line of Credit [Member]
Loans Payable [Line Items]
Line of credit	$ 3,000,000	$ 0
LIBOR Rate [Member]
Loans Payable [Line Items]
Interest payable	2%

Accrued Expenses (Details) - Sc

Accrued Expenses (Details) - Schedule of Accrued Expenses - USD ($)	Aug. 31, 2024	Nov. 30, 2023
Schedule of Accrued Expenses [Abstract]
Commissions	$ 220,701	$ 229,882
Preferred stock dividends	171,569	166,569
Other accrued expenses	174,929	338,932
Total	$ 567,199	$ 735,383

Retirement Plan (Details)

Retirement Plan (Details) - USD ($)	9 Months Ended
Retirement Plan (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023	Nov. 30, 2023
Retirement Plan [Abstract]
Defined contribution plan, description	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.
Total employee contributions	15%
Employer matching contribution percentage	20%
Employee deferral percentage	5%
Net assets plan			$ 2,069,000
Pension expense	$ 32,645	$ 26,751

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)

1 Months Ended

2 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

Apr. 30, 2024

Apr. 30, 2023

Mar. 31, 2022

Apr. 30, 2021

Nov. 30, 2015

Nov. 30, 2000

May 01, 2024

May 31, 2022

May 31, 2021

Jun. 30, 2024

Aug. 31, 2024

Aug. 31, 2023

Nov. 30, 2023

Oct. 31, 2016

Aug. 31, 2010

Feb. 29, 1996

Shareholders’ Equity [Line Items]

Preferred stock, shares authorized

5,000,000

Dividends per share (in Dollars per share)

$ 0.50

Dividends (in Dollars)

$ 171,569

Aggregate of common shares

Total of shares issued

5,085

Cost of issuance (in Dollars)

$ 97,500

$ 3,596

Exercise price (in Dollars per share)

Grant date expire

5 years

Granting cost (in Dollars)

$ 492,132

Intrinsic value of exercisable options (in Dollars)

$ 141,050

Weighted average remaining life

1 year 8 months 8 days

Stock option, description

there was no unrecognized compensation cost related to the stock options granted under the plan.

Compensation amount (in Dollars)

$ 4,000

Non-Employee Director [Member]

Shareholders’ Equity [Line Items]

Compensation amount (in Dollars)

$ 3,000

Series C Preferred Stock [Member]

Shareholders’ Equity [Line Items]

Preferred stock, shares authorized

100,000

Shares of our common stock

Preferred stock issued in payment

70,000

Preferred shares, issued

10,000

Preferred shares, outstanding

10,000

Series D Preferred Stock [Member]

Shareholders’ Equity [Line Items]

Preferred stock, shares authorized

75,000

Preferred shares, issued

Preferred shares, outstanding

2015 Incentive Stock Plan [Member]

Shareholders’ Equity [Line Items]

Total of shares issued

28,179

26,000

26,786

Cost of issuance (in Dollars)

$ 15,000

$ 97,500

$ 75,000

2015 Incentive Stock Plan [Member] | Share-Based Payment Arrangement, Option [Member]

Shareholders’ Equity [Line Items]

Aggregate of common shares

1,500,000

Preferred Stock [Member]

Shareholders’ Equity [Line Items]

Preferred stock, shares authorized

5,000,000

1,000,000

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

Shareholders’ Equity [Line Items]

Cost of issuance (in Dollars)

Four Non-Employee Directors [Member]

Shareholders’ Equity [Line Items]

Aggregate of common shares

20,000

One Non-Employee Director [Member]

Shareholders’ Equity [Line Items]

Aggregate of common shares

30,000

Two Company Officers [Member]

Shareholders’ Equity [Line Items]

Aggregate of common shares

40,000

Exercise price (in Dollars per share)

$ 3.55

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Schedule of Stock Plans	9 Months Ended
Shareholders' Equity (Details) - Schedule of Stock Plans	Aug. 31, 2024 $ / shares shares
Schedule of Activity in the Stock Plans [Abstract]
Shares, Options outstanding December 1, 2023 \| shares	345,000
Weighted Average Exercise Price, Options outstanding December 1, 2023 \| $ / shares	$ 2.59
Shares Options issued in the nine months ended August 31, 2024 \| shares
Weighted Average Exercise Price, Options issued in the nine months ended August 31, 2024 \| $ / shares
Shares, Options exercised in the nine months ended August 31, 2024 \| shares
Weighted Average Exercise Price, Options exercised in the nine months ended August 31, 2024 \| $ / shares
Shares, Options cancelled in the nine months ended August 31, 2024 \| shares
Weighted Average Exercise Price, Options cancelled in the nine months ended August 31, 2024 \| $ / shares
Shares, Options outstanding at August 31, 2024 \| shares	345,000
Weighted Average Exercise Price, Options outstanding at August 31, 2024 \| $ / shares	$ 2.59
Shares, Options exercisable at August 31, 2024 \| shares	345,000
Weighted Average Exercise Price, Options exercisable at August 31, 2024 \| $ / shares	$ 2.59

Income Taxes (Details) - Schedu

Income Taxes (Details) - Schedule of Deferred Income Taxes - USD ($)	Aug. 31, 2024	Nov. 30, 2023
Deferred Tax Assets
Depreciation	$ 41,589	$ 35,684
Allowance for bad debts	17,493	17,309
Inventory	84,450	84,450
Facilities rental	38,954	35,473
Other	56,538	68,412
Total deferred tax assets	239,024	241,328
Valuation allowance
Deferred Tax Assets	$ 239,024	$ 241,328

Income Taxes (Details) - Sche_2

Income Taxes (Details) - Schedule of Income Tax Expense - USD ($)	3 Months Ended		9 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Current:
Federal			$ 166,746	$ 322,894
States			69,941	125,571
Current, total			236,687	448,465
Deferred:
Federal			(1,659)	6,618
States			(645)	2,573
Deferred, total			(2,304)	9,191
Provision for income taxes	$ 179,130	$ 112,570	$ 234,383	$ 457,656

Income Taxes (Details) - Sche_3

Income Taxes (Details) - Schedule of Reconciliation Effective Tax Rate	9 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Schedule of Reconciliation Effective Tax Rate [Abstract]
U.S Federal Income tax statutory rate	21%	21%
State income taxes	5%	5%
Other-primarily state franchise taxes	3%	4%
Effective tax rate	29%	30%

Operating Lease Commitments (De

Operating Lease Commitments (Details) - USD ($)	9 Months Ended		12 Months Ended
Operating Lease Commitments (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023	Nov. 30, 2023
Operating Lease Commitments [Line Items]
Net rental expense	$ 340,563	$ 342,702
Remaining weighted average lease term	5 years 3 months
Weighted average discount rate	5.25%
Hong Kong [Member]
Operating Lease Commitments [Line Items]
Annual minimum rental payments	$ 73,580
Annual minimum rental payments for additional	76,170
Related Company [Member]
Operating Lease Commitments [Line Items]
Annual minimum rental payments			$ 194,000
Net rental expense	$ 211,667	$ 208,703

Operating Lease Commitments (_2

Operating Lease Commitments (Details) - Schedule of Future Minimum Rental Commitments	Aug. 31, 2024 USD ($)
Schedule of Future Minimum Rental Commitments [Abstract]
2025	$ 342,775
2026	228,385
2027	213,518
2028	217,788
2029	222,144
2030 and after	245,500
Future minimum rental commitments	$ 1,470,110

Employment and Other Agreemen_2

Employment and Other Agreements (Details)	1 Months Ended			9 Months Ended
Employment and Other Agreements (Details)	Apr. 30, 2024 USD ($)	May 31, 2021 USD ($)	Feb. 29, 2016 USD ($)	Aug. 31, 2024
Employment and Other Agreements [Line Items]
Number of officers involved in employment agreements			2
Employment agreements termination, description				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.
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.
One Officer [Member]
Employment and Other Agreements [Line Items]
Salaries	$ 330,000	$ 300,000	$ 275,000
Other Officer [Member]
Employment and Other Agreements [Line Items]
Salaries	$ 275,000	$ 250,000	$ 225,000

Major Customers (Details)

Major Customers (Details) - Customer Concentration Risk [Member]	9 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Customer One [Member] \| Net sales [Member]
Major Customers [Line Items]
Concentration risk, percentage	18%	20%
Customer One [Member] \| Accounts Receivable [Member]
Major Customers [Line Items]
Concentration risk, percentage	33%	30%
Customer Two [Member] \| Net sales [Member]
Major Customers [Line Items]
Concentration risk, percentage	15%	17%
Customer Three [Member] \| Net sales [Member]
Major Customers [Line Items]
Concentration risk, percentage	10%

Major Suppliers (Details)

Major Suppliers (Details) - Supplier Concentration Risk [Member] - Inventory Purchased [Member]	9 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
One Foreign Supplier [Member]
Major Suppliers [Line Items]
Percentage of inventory	28%	31%
Taiwan [Member]
Major Suppliers [Line Items]
Percentage of inventory	30%
HONG KONG
Major Suppliers [Line Items]
Percentage of inventory	15%
Asia [Member]
Major Suppliers [Line Items]
Percentage of inventory	49%

Export Sales (Details) - Schedu

Export Sales (Details) - Schedule of Export Sales - USD ($)	9 Months Ended
Export Sales (Details) - Schedule of Export Sales - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Canada [Member]
Schedule of Export Sales [Line Items]
Export sales	$ 2,423,130	$ 4,566,475
China [Member]
Schedule of Export Sales [Line Items]
Export sales	4,068,618	4,368,805
Other Asian Countries [Member]
Schedule of Export Sales [Line Items]
Export sales	596,791	1,088,886
South America [Member]
Schedule of Export Sales [Line Items]
Export sales	73,741	145,240
Europe [Member]
Schedule of Export Sales [Line Items]
Export sales	716,294	843,719
Mexico [Member]
Schedule of Export Sales [Line Items]
Export sales	$ 21,500

Shareholders' Equity (Details) - Schedule of Stock Plans	9 Months Ended
Shareholders' Equity (Details) - Schedule of Stock Plans	Aug. 31, 2024 $ / shares shares
Schedule of Activity in the Stock Plans [Abstract]
Shares, Options outstanding December 1, 2023 \| shares	345,000
Weighted Average Exercise Price, Options outstanding December 1, 2023 \| $ / shares	$ 2.59
Shares Options issued in the nine months ended August 31, 2024 \| shares
Weighted Average Exercise Price, Options issued in the nine months ended August 31, 2024 \| $ / shares
Shares, Options exercised in the nine months ended August 31, 2024 \| shares
Weighted Average Exercise Price, Options exercised in the nine months ended August 31, 2024 \| $ / shares
Shares, Options cancelled in the nine months ended August 31, 2024 \| shares
Weighted Average Exercise Price, Options cancelled in the nine months ended August 31, 2024 \| $ / shares
Shares, Options outstanding at August 31, 2024 \| shares	345,000
Weighted Average Exercise Price, Options outstanding at August 31, 2024 \| $ / shares	$ 2.59
Shares, Options exercisable at August 31, 2024 \| shares	345,000
Weighted Average Exercise Price, Options exercisable at August 31, 2024 \| $ / shares	$ 2.59