I can't see what accounts for this big increase in the tax provision. Any ideas?
With little difference in net income year over year, the difference in the "Provision for income taxes" is very big - in this 10Q ($4.34M) compared to 1 year ago (.163):
Feb 2008 Feb 2007
Total operating expenses |
|
|
1,781,817 |
|
|
|
1,750,194 |
| Operating loss |
|
|
(1,325,617 |
) |
|
|
(1,728,019 |
| |
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
| Interest and other income |
|
|
318,284 |
|
|
|
191,437 |
| Loss on sale of assets |
|
|
(2,242 |
) |
|
|
- |
| Interest expense |
|
|
- |
|
|
|
- |
| Gain on sale of subsidiary interest |
|
|
- |
|
|
|
- |
| Equity in earnings of affiliated company |
|
|
11,696,265 |
|
|
|
11,656,603 |
| Impairment of note receivable |
|
|
- |
|
|
|
(339,551 |
| Total other income, net |
|
|
12,012,307 |
|
|
|
11,508,489 |
| |
|
|
|
|
|
|
|
| Income before income taxes |
|
|
10,686,690 |
|
|
|
9,780,470 |
| |
|
|
|
|
|
|
|
| Provision for income taxes |
|
|
4,394,505 |
|
|
|
162,911 |
| |
|
|
|
|
|
|
|
| Net income |
|
$ |
6,292,185 |
|
|
$ |
9,617,559 |
| |
|
|
|
|
|
|
|
| Basic income per common share |
|
$ |
0.02 |
|
|
$ |
0.03 |
