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SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 Annual Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 For the Fiscal Year Ended November 30, 2008
 Commission File Number 001-31643
 CCA INDUSTRIES, INC.
  DELAWARE
    
    04-2795439(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 200 Murray Hill Parkway, East Rutherford, New Jersey 07073
 (Registrants telephone number, including area code)
  
 
 þ o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 Yes o No þ
  Class of Voting Stock
    
    Market Value4,940,667 shares; CommonStock, $.01 par value
    
    $43,379,056




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Headings in this FormForm 10-K
    
    10-K for Year EndedItem No.
    
    November 30, 20081. Business
    
    Business2. Property
    
    Property3. Legal Proceedings
    
    Legal Proceedings4. Submission of Matters
to a Vote of Security
Holders
    
    Submission of Matters to a
Vote of Security Holders5. Market for Registrants
Common Equity and
Related Stockholder
Matters
    
    Market for the Companys
Common Stock and Related
Shareholder Matters6. Selected Financial Data
    
    Selected Financial Data7. Managements Discussion
and Analysis of Financial
Condition and Results
of Operations
    
    Managements Discussion and
Analysis of Financial
Condition and Results of
Operations7A. Quantitative and Qualitative
Disclosures about Market Risk
    
    Quantitative and Qualitative
Disclosures about Market Risk8. Financial Statements
and Supplementary Data
    
    Financial Statements
and Supplementary Data9. Changes In and Dis-agreements With
Accountants On Accounting
and Financial Disclosure
    
    Changes In and Dis-agreements With
Accountants On Accounting
and Financial Disclosure9A. Controls and Procedures
    
    Controls and Procedures10. Directors and
Executive Officers
of the Registrant
    
    Directors and Executive
Officers of the Registrant
  - ii -




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Headings in this FormForm 10-K
    
    10-K for Year EndedItem No.
    
    November 30, 200811. Executive Compensation
    
    Executive Compensation12. Security Ownership
of Certain Beneficial
Owners and Management
and Related Stockholder Matters
    
    Security Ownership
of Certain Beneficial
Owners and Management and Related
Shareholder Matters13. Certain Relationships
and Related Transactions
    
    Certain Relationships
and Related Transactions14. Principal Accountant Fees
and Services
    
    Principal Accountant Fees
and Services15. Exhibits, Financial
Statements, Schedules,
and Reports on Form
8-K
    
    Exhibits, Financial
Statements, Schedules,
and Reports on Form
8-K
  - iii -




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TABLE OF CONTENTS
 Item
    
    PagePART I1. Business
    
    
    12. Property
    
    
    63. Legal Proceedings
    
    
    64. Submission of Matters to a Vote of Security Holders
    
    
    6PART II5. Market for the Companys Common Stock and Related Shareholder Matters
    
    
    76. Selected Financial Data
    
    
    97. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    107A. Quantitative and Qualitative Disclosure About Market Risk
    
    
    218. Financial Statements and Supplementary Data
    
    
    229. Changes In and Disagreements with Accountants On Accounting and Financial Disclosure
    
    
    229A. Controls and Procedures
    
    
    22PART III10. Directors and Executive Officers of the Registrant
    
    
    2411. Executive Compensation
    
    
    2712. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
    
    
    3213. Certain Relationships and Related Transactions
    
    
    3414. Principal Accountant Fees and Services
    
    
    34PART IV15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
    
    
    36Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   - iv -




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PART I
 
 Item 1. BUSINESS
 General
        - 1 -




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Manufacturing and Shipping
  Marketing
         - 2 -




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Wholly-Owned Products
  All Products
  License-Agreements Products
      - 3 -




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Trademarks
  Competition
  Government Regulation
 i.e.
 Dubilier Transaction
   - 5 -




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Item 2. PROPERTY
    
 Item 3. LEGAL PROCEEDINGS
   
 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
     - 6 -




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PART II
 
 Item 5.
    MARKET FOR THE COMPANYS COMMON STOCK AND RELATED SHAREHOLDER MATTERS
   Quarter Ended
    
    2008
    
    
    2007
    
    
    2006February 29
    
    $
    9.90  $8.91
    
    
    $
    12.12  $11.06
    
    
    $
    11.45  $7.80May 31
    
    $
    9.65  $8.53
    
    
    $
    12.04  $9.03
    
    
    $
    11.10  $9.95August 31
    
    $
    8.85  $6.35
    
    
    $
    10.60  $8.94
    
    
    $
    10.40  $9.41November 30
    
    $
    6.40  $3.60
    
    
    $
    10.25  $9.20
    
    
    $
    11.73  $9.49
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Item 6. SELECTED FINANCIAL DATA
 Year Ended November 30,2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Statement of IncomeSales, Net (1)
    
    $
    56,741,133
    
    
    $
    59,832,157
    
    
    $
    63,302,220
    
    
    $
    61,181,344
    
    
    $
    59,008,135Other income
    
    
    716,813
    
    
    
    1,045,710
    
    
    
    797,803
    
    
    
    572,909
    
    
    
    850,196Costs and Expenses (1)
    
    
    54,991,547
    
    
    
    51,283,141
    
    
    
    55,183,378
    
    
    
    54,646,715
    
    
    
    50,484,052Income before provision for
Income Taxes
    
    
    2,466,399
    
    
    
    9,594,726
    
    
    
    8,916,645
    
    
    
    7,107,528
    
    
    
    9,374,279Net Income
    
    $
    1,412,886
    
    
    $
    5,537,795
    
    
    $
    5,604,251
    
    
    $
    3,785,502
    
    
    $
    5,796,663Earnings Per Share:Basic
    
    $
    .20
    
    
    $
    .79
    
    
    $
    .80
    
    
    $
    .53
    
    
    $
    .78
    *Diluted
    
    $
    .20
    
    
    $
    .78
    
    
    $
    .79
    
    
    $
    .52
    
    
    $
    .75
    *Weighted Average Number
of Shares Outstanding
    
    
    7,054,442
    
    
    
    7,029,611
    
    
    
    7,034,276
    
    
    
    7,145,297
    
    
    
    7,399,472
    *Weighted Average Number
of Shares and Common Stock
Equivalents Outstanding
    
    
    7,061,646
    
    
    
    7,058,889
    
    
    
    7,133,332
    
    
    
    7,317,994
    
    
    
    7,680,781
    *
 As At November 30,2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Balance Sheet Data:Working Capital
    
    $
    23,836,264
    
    
    $
    24,922,016
    
    
    $
    22,295,983
    
    
    $
    18,602,107
    
    
    $
    13,562,389Total Assets
    
    
    39,345,861
    
    
    
    39,903,876
    
    
    
    36,516,571
    
    
    
    35,309,308
    
    
    
    31,556,577Total Liabilities
    
    
    11,091,982
    
    
    
    9,153,558
    
    
    
    9,131,780
    
    
    
    9,309,652
    
    
    
    8,034,530Total Shareholders Equity
    
    
    28,253,879
    
    
    
    30,750,318
    
    
    
    27,284,791
    
    
    
    25,999,656
    
    
    
    23,522,047
 (1)
    
    Certain additional promotional expenses were re-classified during 2006 from an expense to a
reduction of net sales. In order to have an accurate comparison, the same expenses were
re-classified accordingly for the years ended November 30, 2004 and 2005. The reclassification did
not affect the net income for those years.*
    
    Adjusted for 2% stock dividend in 2004.  - 9 -




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Item 7.
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  Comparison of Results for Fiscal Years 2008 and 2007
     - 10 -




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Comparison of Results for Fiscal Years 2007 and 2006
     - 12 -




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Liquidity and Capital Resources
   - 14 -




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Inventory, Seasonality, Inflation and General Economic Factors
      - 16 -




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Contractual Obligations
  2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013Lease on Premises (1)
    
    
    751,421
    
    
    
    692,106
    
    
    
    665,323
    
    
    
    326,197
    
    
    
    Royalty Expense (2)
    
    
    25,000
    
    
    
    25,000
    
    
    
    25,000
    
    
    
    25,000
    
    
    
    25,000Employment Contracts (3)
    
    
    2,733,050
    
    
    
    2,859,533
    
    
    
    1,907,994
    
    
    
    1,984,974
    
    
    
    1,441,572Open Purchase Orders
    
    
    3,727,992Total Contractual Obligations
    
    
    7,227,463
    
    
    
    3,700,155
    
    
    
    2,619,348
    
    
    
    2,343,463
    
    
    
    1,466,572
 (1)
    
    The major lease is a net, net lease requiring a yearly rental of $327,684 plus Common Area
Maintenance CAM. See Section Part I, Item 2. The rental provided above is the base rental
and estimated CAM. CAM for 2008 is estimated at $150,000. The figures above do not include
adjustments for the CPI. The lease has an annual CPI adjustment, not to cumulatively exceed
15% in any consecutive five year period. The lease expires on May 31, 2012 with a renewal
option for an additional five years. On September 26, 2007, the Company entered into a
warehouse lease with Ninth Avenue Equities Co., Inc. to lease 16,438 square feet of space
known as Unit B located at Murray Hill Industrial Center in East Rutherford, New Jersey for a
four and a half year period. The year end net rental expense including CAM was $28,150. The
annual rental is $123,285 plus CPI adjustments, real estate taxes and common area maintenance
expenses.(2)
    
    See Section Part I, Item 1(f). The Company is not required to pay any royalty in excess of
realized sales if the Company chooses not to continue under the license. The figures set
forth above reflect estimates of the royalty expense anticipated minimum requirements to
maintain the licenses under the various contracts for the licensed products based on fiscal
2008 sales. Royalty expense includes Alleghany Pharmacal, Solar Sense, Nail Consultants,
Tea-Guard, Inc. and Stephen Hsu, PhD.(3)
    
    The Company had executed Employment Contracts on December 1, 1993, with its CEO, David Edell,
and its Chairman of the Board, Ira W. Berman. The contracts for both are exactly the same.
The contracts expire on December 31, 2010. The contracts provide for a base salary which
commenced in 1994 in the amount of $300,000 (plus a bonus of 20% of the base salary), with a
year-to-year CPI or 6% increase, plus 2.5% of the Companys pre-tax income less depreciation
and amortization (EBITDA) plus certain fringe benefits including the cost of certain life
insurance, auto expenses, and health insurance. (The 2.5% measure in the bonus provision of
the
Edell/Berman contracts was amended on November 3, 1998 so as to calculate it against earnings
before income taxes, less depreciation, amortization and expenditures for media and cooperative
advertising in excess of $8,000,000.) On May 24, 2001, the contract was amended increasing the
base salary then in effect by $100,000 per annum. The contracts also provide that at the end of
the term or upon retirement, Edell/Berman shall be retained by the Company as consultants at the
consideration equal to 50% of the prior years salary and bonus for a five year period. The
figures above include only the base salaries for the five years (plus the portion of the bonus
equal to 20% of the base salary), an adjustment for CPI, and without estimating the 2.5% bonus
provision, as that bonus is contingent upon future earnings, and also including most of the
payments that would be due as consulting payments upon expiration or retirement (the portion
based on the 2.5% bonus provision is not calculated into the consulting payment estimate). On
June 1, 2001, the Company added a provision to the Contracts stating that in the event of death
within the employment and consulting periods, the Company would be obligated for two successive
years to pay the executives estate an amount equal to the annual base salary and bonus.  - 17 -




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David Edells sons, Dunnan Edell and Drew Edell have five-year employment contracts in the
amounts of $270,000 and $200,000 respectively, which expire on November 30, 2007 (See Item 11,
Summary Compensation Table). In July 2003, Dunnan Edells salary was increased to $300,000 and
in January 2004, Drew Edells salary was increased to $225,000. In fiscal 2005, Drew Edells
salary was increased to $250,000. Dunnan Edell is a director and during fiscal 2003 was
appointed President of the Company and Chief Operating Officer. Drew Edell is the Vice President
of Research, and Product Development.On February 10, 2006, the Board of Directors extended the employment contracts for Dunnan Edell
and Drew Edell to December 31, 2010. On May 17, 2007, the employment contracts for Dunnan Edell
and Drew Edell were amended by the Board of Directors, extending the contracts to November 30,
2012, and increasing Dunnan Edells base salary to $350,000 and Drew Edells base salary to
$275,000. Recent Accounting Pronouncements
     - 18 -




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Cautionary Statements Regarding Forward-Looking Statements
  Concentration of Risk
   - 19 -




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There is No Assurance That The Business Will Continue to Operate Profitably.
  Competition in the Cosmetic, Health and Beauty Aid Industry is Highly Competitive.
  CLASS A Shareholders Retain Control of Board of Directors .
  Future Success Depends on Continued Success of the Companys Current Products and New
Product Development.
  Future Possible Litigation
    - 20 -




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The Company Relies On A Few Large Customers For A Significant Portion Of Its Sales.
  The Companys Dietary Supplement Business Could Be Adversely Affected By Unfavorable
Scientific Studies Or Negative Press.
  The Price of the Companys Stock May Be Volatile
  
 Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
   - 21 -




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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
  Three Months EndedFiscal 2008
    
    Feb. 28
    
    
    May 31
    
    
    Aug. 31
    
    
    Nov. 30Net Sales
    
    $
    13,639,145
    
    
    $
    17,258,060
    
    
    $
    13,939,214
    
    
    
    11,904,714Total Revenue
    
    
    13,871,040
    
    
    
    17,389,985
    
    
    
    14,148,729
    
    
    
    12,048,192Cost of Products Sold
    
    
    4,893,262
    
    
    
    6,335,298
    
    
    
    5,252,704
    
    
    
    5,287,878Net Income
    
    
    343,683
    
    
    
    790,692
    
    
    
    1,101,420
    
    
    
    (822,909
    )Earnings Per Share:Basic
    
    $
    .05
    
    
    $
    .11
    
    
    $
    .16
    
    
    $
    (.12
    )Diluted
    
    $
    .05
    
    
    $
    .11
    
    
    $
    .16
    
    
    $
    (.12
    )
 Three Months EndedFiscal 2007 **
    
    Feb. 28
    
    
    May 31
    
    
    Aug. 31
    
    
    Nov. 30Net Sales
    
    $
    13,727,279
    
    
    $
    18,227,413
    
    
    $
    13,939,369
    
    
    
    14,085,903Total Revenue
    
    
    13,975,385
    
    
    
    18,457,562
    
    
    
    14,266,083
    
    
    
    14,326,644Cost of Products Sold
    
    
    4,905,272
    
    
    
    6,662,077
    
    
    
    4,933,134
    
    
    
    5,081,090Net Income
    
    
    472,753
    
    
    
    1,292,921
    
    
    
    2,069,604
    
    
    
    1,702,517Earnings Per Share:Basic
    
    $
    .07
    
    
    $
    .18
    
    
    $
    .29
    
    
    $
    .25Diluted
    
    $
    .07
    
    
    $
    .18
    
    
    $
    .29
    
    
    $
    .24
 **
    
    After reclassification of certain additional promotional expenses from expense to a reduction of
net sales. 
 Item 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
  
 Item 9A. CONTROLS AND PROCEDURES
   - 22 -




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Managements Report on Internal Control Over Financial Reporting
       DAVID EDELL/s/ David EdellDavid Edell, Chief Executive OfficerSTEPHEN A. HEIT/s/ Stephen A. HeitStephen A. Heit, Chief Financial Officer
  - 23 -




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PART III
 
 Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
   YEAR OF FIRSTNAME
    
    POSITION
    
    COMPANY SERVICEDavid Edell
    
    Chief
Executive Officer,
Director
    
    
    1983Ira W. Berman
    
    Chairman of the Board
of Directors, Secretary,
Executive Vice President
    
    
    1983Dunnan Edell
    
    President, Chief Operating Officer
and Director
    
    
    1984Stephen Heit
    
    Executive Vice President and
Chief Financial Officer
    
    
    2005Drew Edell
    
    Executive Vice President-
Product Development and Production
    
    
    1983John Bingman
    
    Vice President and Treasurer
    
    
    1986Stanley Kreitman
    
    Director
    
    
    1996Jack Polak
    
    Director
    
    
    1983Robert Lage
    
    Director
    
    
    2003Seth Hamot
    
    Director
    
    
    2007
     - 24 -




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   - 25 -




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Committees of the Board of Directors
   - 26 -




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Item 11. EXECUTIVE COMPENSATION
 i.
    
    Summary Compensation Table
  Annual Compensation
    
    
    Long-Term CompensationNumberAll
    
    
    of SharesOther
    
    
    Covered
    
    
    OtherName and
    
    
    
    
    
    
    
    
    
    
    
    
    
    Annual
    
    
    by Stock
    
    
    Long-TermPrincipal
    
    
    
    
    
    
    
    
    
    
    
    
    
    Compen-
    
    
    Options
    
    
    Compen-Position
    
    Year
    
    
    Salary
    
    
    Bonus(1)
    
    
    sation(2)
    
    
    Granted(3)
    
    
    sationDavid Edell,
    
    
    2008
    
    
    $
    812,700
    
    
    $
    422,285
    
    
    $
    43,639
    
    
    
    
    
    
    
    0
    (4)Chief Executive
Officer
    
    
    2007
    
    
    
    794,173
    
    
    
    532,807
    
    
    
    44,155
    
    
    
    
    
    
    
    0
    (4)2006
    
    
    
    737,001
    
    
    
    556,410
    
    
    
    41,193
    
    
    
    
    
    
    
    0
    (4)Ira W. Berman,
    
    
    2008
    
    
    $
    812,700
    
    
    $
    422,285
    
    
    $
    45,443
    
    
    
    
    
    
    
    0
    (4)Secretary and
    
    
    2007
    
    
    
    794,173
    
    
    
    532,807
    
    
    
    40,699
    
    
    
    
    
    
    
    0
    (4)Executive
Vice President
    
    
    2006
    
    
    
    737,001
    
    
    
    556,410
    
    
    
    31,718
    
    
    
    
    
    
    
    0
    (4)Dunnan Edell,
    
    
    2008
    
    
    $
    343,269
    
    
    $
    96,000
    
    
    $
    16,632
    
    
    
    
    
    
    
    0President,
Chief Operating Officer
    
    
    2007
    
    
    
    355,962
    
    
    
    120,000
    
    
    
    11,060
    
    
    
    
    
    
    
    02006
    
    
    
    300,000
    
    
    
    120,000
    
    
    
    9,155
    
    
    
    
    
    
    
    0Stephen Heit
    
    
    2008
    
    
    $
    234,615
    
    
    $
    24,000
    
    
    $
    9,093
    
    
    
    
    
    
    
    0Executive Vice President,
    
    
    2007
    
    
    
    229,327
    
    
    
    30,000
    
    
    
    8,081
    
    
    
    
    
    
    
    0Chief Financial
Officer
    
    
    2006
    
    
    
    211,538
    
    
    
    30,000
    
    
    
    7,972
    
    
    
    
    
    
    
    0Drew Edell
    
    
    2008
    
    
    $
    269,711
    
    
    $
    48,000
    
    
    $
    11,442
    
    
    
    
    
    
    
    0Executive Vice
    
    
    2007
    
    
    
    279,904
    
    
    
    60,000
    
    
    
    10,008
    
    
    
    
    
    
    
    0President
Product
Development &
Production
    
    
    2006
    
    
    
    250,000
    
    
    
    60,000
    
    
    
    9,188
    
    
    
    
    
    
    
    0Jon Denis
    
    
    2008
    
    
    $
    318,750
    
    
    $
    6,250
    
    
    $
    10,578
    
    
    
    
    
    
    
    0Senior
Executive Vice President -
Sales
    
    
    2007
    
    
    
    331,250
    
    
    
    50,000
    
    
    
    10,235
    
    
    
    
    
    
    
    02006
    
    
    
    248,750
    
    
    
    75,000
    
    
    
    6,693
    
    
    
    
    
    
    
    0
 (1)
    
    Bonus amounts represents amounts earned in each respective fiscal year, not necessarily paid
in each year.(2)
    
    Includes the personal-use value of Company-leased automobiles, the value of Company-provided
life insurance, and health insurance that is made available to all employees. The Employment
Agreement of Edell/Berman provides that they may receive an additional reimbursement for a complete
physical examination and reimbursement of up to $5,000 of medical expenses for each employment or
consulting period. The Company also pays for a life insurance policy owned by Edell/Berman, with a
face value of $750,000 for each policy, as per their respective Employment Agreements.(3)
    
    Information in respect of stock option plans appears below in the sub-topic, Employment
Contracts/Executive Compensation Program. For information in regard to stock appreciation rights,
refer to Note 9 of the financial statements.(4)
    
    The employment of Edell/Berman provides that in the event of death within the employment and
consulting periods, the Company is obligated for two successive years to pay the executives estate
an amount equal to the annual base salary and bonus.  - 27 -




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ii.
    
    Fiscal 2008 Option Grants and Option Exercises,
Year-End Option Valuation, Option Repricing
   Number of
    
    
    
    
    
    
    Number of SharesShares
    
    
    
    
    
    
    Covered by Un-
    
    
    Value of UnexercisedAcquired
    
    
    Value
    
    
    exercised Options
    
    
    In-the-Money OptionsOn Exercise
    
    
    Realized (1)
    
    
    at November 30, 2008
    
    
    at November 30, 2008(2)David Edell
    
    
    0
    
    
    
    0
    
    
    
    25,000
    
    
    $
    0.00Ira Berman
    
    
    0
    
    
    
    0
    
    
    
    25,000
    
    
    
    0.00Dunnan Edell
    
    
    0
    
    
    
    0
    
    
    
    15,000
    
    
    
    0.00Drew Edell
    
    
    0
    
    
    
    0
    
    
    
    15,000
    
    
    
    0.00John Bingman
    
    
    0
    
    
    
    0
    
    
    
    10,000
    
    
    
    0.00
 
 (1)
    
    Represents the difference between market price and the respective exercise price of the
options as of the exercise date.(2)
    
    Represents the difference between market price and the respective exercise prices of
the options as of December 1, 2008. The market price at December 1, 2008 was $3.52. iii.
    
    Compensation of Directors and Committees of the Board
   - 28 -




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##### Table of Contents



iv.
    
    Executive Compensation Principles
Compensation Committee
      v.
    
    Employment Contracts/Compensation Program
    - 29 -




---



##### Table of Contents



vi.
    
    Stock Option Plans
         - 30 -




---



##### Table of Contents



vii.
    
    Performance Graph
   - 31 -




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##### Table of Contents



Copyright @ 2008 Dow Jones & Company. All rights reserved.
 11/03
    
    

11/04
    
    
    11/05
    
    
    11/06
    
    
    11/07
    
    
    11/08CCA Idustries, Inc.
    
    
    100.00
    
    
    
    151.86
    
    
    
    115.99
    
    
    
    167.50
    
    
    
    144.15
    
    
    
    57.54Dow Jones US
    
    
    100.00
    
    
    
    113.26
    
    
    
    124.59
    
    
    
    142.55
    
    
    
    153.82
    
    
    
    94.40Dow Jones US Personal Products
    
    
    100.00
    
    
    
    112.10
    
    
    
    123.69
    
    
    
    148.33
    
    
    
    177.02
    
    
    
    136.70
 
 Item 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER
MATTERS
   - 32 -




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##### Table of Contents



Ownership, As ANumber of
    
    
    
    
    
    
    Percentage ofShares Owned (1):
    
    
    
    
    
    
    All Shares Out-Common
    
    
    
    
    
    
    Option
    
    
    Standing/AssumingName and Address
    
    Stock
    
    
    Class A (2)
    
    
    Shares (1)
    
    
    Option Share Exercise (1)David Edell
    
    
    146,609
    
    
    
    484,615
    
    
    
    25,000
    
    
    
    8.9
    %
    
    
    9.3
    %c/o CCA Industries, Inc.
200 Murray Hill Parkway
East Rutherford, NJ 07073Ira W. Berman
    
    
    160,533
    
    
    
    483,087
    
    
    
    25,000
    
    
    
    9.1
    %
    
    
    9.5
    %c/o CCA Industries, Inc.Seth Hamot (3)(4)
    
    
    574,300
    
    
    
    
    
    
    
    
    
    
    
    8.1
    %
    
    
    8.1
    %c/o Costa Brava
Partnership III LPStanley Kreitman
    
    
    15,000
    
    
    
    
    
    
    
    
    
    
    
    0.2
    %
    
    
    0.2
    %c/o CCA Industries, Inc.Robert Lage
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.0
    %
    
    
    0.0
    %c/o CCA Industries, Inc.Jack Polak
c/o CCA Industries, Inc.
    
    
    53,254
    
    
    
    
    
    
    
    
    
    
    
    0.8
    %
    
    
    0.8
    %Dunnan Edell
c/o CCA Industries, Inc.
    
    
    97,158
    
    
    
    
    
    
    
    15,000
    
    
    
    1.4
    %
    
    
    1.6
    %Drew Edell
c/o CCA Industries, Inc.
    
    
    98,108
    
    
    
    
    
    
    
    15,000
    
    
    
    1.4
    %
    
    
    1.6
    %John Bingman
c/o CCA Industries, Inc.
    
    
    
    
    
    
    
    
    
    
    10,000
    
    
    
    0.0
    %
    
    
    0.1
    %Stephen A. Heit
c/o CCA Industries, Inc.
    
    
    1,111
    
    
    
    
    
    
    
    
    
    
    
    0.0
    %
    
    
    0.0
    %Officers and Directors
as a group (10 persons)
    
    
    1,146,073
    
    
    
    967,702
    
    
    
    90,000
    
    
    
    30.0
    %
    
    
    31.2
    %
  - 33 -




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##### Table of Contents



(1)
    
    The number of Option Shares represents the number of shares that could be purchased by, and
upon exercise of unexercised options, exercisable within 90 days; and the percentage ownership
figure denominated Assuming Option Share Exercise assumes, per person, that unexercised options
have been exercised and, thus, that subject shares have been purchased and are actually owned. In
turn, the assumed percentage ownership figure is measured, for each owner, as if each had
exercised such options, and purchased subject option shares, and thus increased total shares
actually outstanding, but that no other option owner had exercised and purchased.(2)
    
    David Edell and Ira Berman own 100% of the outstanding shares of Class A Common Stock. Messrs.
David Edell, Dunnan Edell, and Ira Berman are officers and directors. Messrs. Stephen Heit, John
Bingman and Drew Edell are officers. Messrs. Hamot, Lage, Kreitman and Polak are independent,
outside directors(3)
    
    Includes 574,300 shares beneficially owned by Costa Brava Partnership III L.P. Seth W.
Hamot is the president of Roark, Reardon & Hamot, LLC, which is the general partner of Costa Brava
Partnership III L.P.(4)
    
    The principal business of Costa Brava Partnership III L.P. is to make investments in, buy,
sell, hold, pledge and assign securities. The principal business of Roark, Rearden and Hamot, LLC
is to act as general partner of Costa Brava Partnership III L.P. The principal business address is
420 Boylston Street, Boston, MA 02116. Seth W. Hamot is the president of Roark, Rearden & Hamot,
LLC, which is the general partner of Costa Brava Partnership III L.P. 
 Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
   
 Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
   - 34 -




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##### Table of Contents



Audit Fees
  Audit Related Fees
  Tax Fees
  All Other Fees
  Engagements Subject to Approval
  de minimus
  - 35 -




---



##### Table of Contents



PART IV
 
 Item 15. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8-K
       - 36 -




---



##### Table of Contents



(1)
    
    The Indenture (and the Promissory note exhibited therewith) defining the rights of former
shareholders who tendered Common Stock to the Company for its $2 per share, five- year, 6%
debenture, is incorporated by reference to the filing of such documents with the Schedule TO
filed with the SEC, on June 5, 2001.
 (3)
    
    The Companys Articles of Incorporation and Amendments thereof, and its By-Laws, are
incorporated by reference to their filing with the Form 10-K/A filed April 5, 1995. (Exhibit
pages 000001-23).
 (10.1)
    
    The Following Material Contracts are incorporated by reference to their filing with the Form
10-K/A filed April 5, 1995: Amended and Restated Employment Agreements of 1994, with David
Edell and Ira Berman; License Agreement made February 12, 1986 with Alleghany Pharmacal
Corporation.
 (10.2)
    
    The February 1999 Amendments to the Amended and Restated Employment Agreements of David
Edell and Ira Berman (1994) are incorporated by reference to the 1998 10-K. (Exhibit pages
00001-00002). The May 29, 2001 Amended and Restated Employment Agreements of David Edell and
Ira Berman are incorporated by reference herein.
  (1)
    
    The Forms 8K, filed on May 22, 2002 and November 20, 2002, are incorporated by
reference to this 10K. Three 8Ks are referenced, October 29, 2003, November 24, 2003
and December 11, 2003. Three additional 8Ks are referenced, one on April 7, 2004, one
on August 3, 2004 and the last on October 6, 2004.
 (2)
    
    Forms 8K filed on April 11, 2005, June 27, 2005, and July 15, 2005 are
incorporated by reference to this 10K
 (3)
    
    The Companys 2003 Stock Option Plan was filed with the 2003 Proxy and is
incorporated by reference to this 10K.
 (4)
    
    The Companys 2005 Amended and Restated Stock Option Plan and the 2005 Proxy
are incorporated by reference herein.
 (5)
    
    Form 8K, filed on January 21, 2009, is incorporated by reference to this 10K.
  - 37 -




---



##### Table of Contents



(1)
    
    Form 10-Q, filed on October 14, 2008, for the quarter ended August 31, 2008.
 (2)
    
    Form 8-K, filed on November 4, 2008, announcing that the Company had purchased
three Trademarks, the first joint pain analgesic products it has ever marketed. The
Trademarks are Pain Bust RI, Pain Bust RII, and Pain Bust R Ultra.
 (11)
    
    Statement re Per Share Earnings (included in Item 15, Financial Statements)
 (14)
    
    Code of Ethics for Chief Executive Officer and Senior Financial Officers are referenced
 (31.1)
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) included herein(31.2)
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) included herein(32.1)
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350 included herein(32.2)
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350 included herein
 http://www.sec.gov
  - 38 -




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##### Table of Contents



SIGNATURES
  CCA INDUSTRIES, INC.By:

/s/ DUNNAN EDELLDUNNAN EDELL, President  Signature
    
    Title
    
    Date/s/ DAVID EDELL
    
    Chief Executive Officer,
    
    February 27, 2009DAVID EDELL
    
    Director/s/ IRA W. BERMAN
    
    Chairman of the Board of Directors,
    
    February 27, 2009IRA W. BERMAN
    
    Executive
Vice President, Secretary/s/ DUNNAN EDELL
    
    President, Chief Operating Officer,
    
    February 27, 2009DUNNAN EDELL
    
    Director/s/ STEPHEN HEIT
    
    Executive Vice President,
    
    February 27, 2009STEPHEN HEIT
    
    Chief Financial Officer/s/ DREW EDELL
    
    Vice President ,
    
    February 28, 2009DREW EDELL
    
    Research & Development/s/ STANLEY KREITMAN
    
    Director
    
    February 27, 2009STANLEY KREITMAN/s/ ROBERT LAGE
    
    Director
    
    February 27, 2009ROBERT LAGE/s/ JACK POLAK
    
    Director
    
    February 27, 2009JACK POLAK/s/ SETH HAMOT
    
    Director
    
    February 27, 2009SETH HAMOT
  - 39 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATED FINANCIAL STATEMENTS
 NOVEMBER 30, 2008 AND 2007




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    
    2FINANCIAL STATEMENTS:CONSOLIDATED BALANCE SHEETS
    
    
    3-4CONSOLIDATED STATEMENTS OF INCOME
    
    
    5CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
    
    
    6CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
    
    
    7CONSOLIDATED STATEMENTS OF CASH FLOWS
    
    
    8NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    
    
    9-36SUPPLEMENTARY INFORMATIONSCHEDULE II  VALUATION ACCOUNTS
    
    
    37
  - 1 -




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
 
  - 2 -




---



##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
   2008
    
    
    2007Current AssetsCash and cash equivalents
    
    $
    8,934,699
    
    
    $
    6,743,960Short-term investments and marketable
securities (Notes 2 and 6)
    
    
    6,648,357
    
    
    
    8,003,824Accounts receivable, net of allowances of
$823,029 and $874,302, respectively
    
    
    8,230,716
    
    
    
    9,119,179Inventories, net of reserve for inventory
obsolescence of $578,941 and $604,746,
respectively (Notes 2 and 3)
    
    
    7,932,798
    
    
    
    7,857,322Prepaid expenses and sundry receivables
    
    
    578,000
    
    
    
    630,893Prepaid income taxes and refunds due
(Note 8)
    
    
    1,554,158
    
    
    
    839,693Deferred income taxes (Note 8)
    
    
    973,732
    
    
    
    765,821Total Current Assets
    
    
    34,852,460
    
    
    
    33,960,692Property and Equipment, net of accumulated
depreciation and amortization
(Notes 2 and 4)
    
    
    611,226
    
    
    
    562,528Intangible Assets, net of accumulated
amortization (Notes 2 and 5)
    
    
    727,716
    
    
    
    484,377Other AssetsMarketable securities (Notes 2 and 6)
    
    
    2,945,740
    
    
    
    4,801,504Deferred taxes
    
    
    143,419
    
    
    
    29,475Other
    
    
    65,300
    
    
    
    65,300Total Other Assets
    
    
    3,154,459
    
    
    
    4,896,279Total Assets
    
    $
    39,345,861
    
    
    $
    39,903,876
   - 3 -




---



##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES  CONSOLIDATED BALANCE SHEETS
 2008
    
    
    2007Current LiabilitiesAccounts payable and accrued liabilities (Note 10)
    
    $
    10,182,510
    
    
    $
    8,354,458Short term capital lease
    
    
    57,697
    
    
    
    49,318Dividends payable (Note 12)
    
    
    775,989
    
    
    
    634,900Total Current Liabilities
    
    
    11,016,196
    
    
    
    9,038,676Capitalized lease obligations
    
    
    75,786
    
    
    
    114,882Total Liabilities
    
    
    11,091,982
    
    
    
    9,153,558Commitments and Contingencies (Note 12)Shareholders EquityPreferred stock, $1.00 par; authorized
20,000,000 shares; none issued
    
    
    
    
    
    
    Common stock, $.01 par; authorized
15,000,000 shares; issued and
outstanding 6,086,740 and
6,086,740 shares, respectively
    
    
    60,867
    
    
    
    60,867Class A common stock, $.01 par; authorized
5,000,000 shares; issued and outstanding
967,702 and 967,702 shares, respectively
    
    
    9,677
    
    
    
    9,677Additional paid-in capital
    
    
    2,329,049
    
    
    
    2,329,049Retained earnings
    
    
    26,920,561
    
    
    
    28,541,086Unrealized (losses) on marketable securities
(Note 2)
    
    
    (1,066,275
    )
    
    
    (190,361
    )Total Shareholders Equity
    
    
    28,253,879
    
    
    
    30,750,318Total Liabilities and Shareholders Equity
    
    $
    39,345,861
    
    
    $
    39,903,876
   - 4 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF INCOME
 Years Ended November 30,2008
    
    
    2007
    
    
    2006RevenuesSales of health and beauty
aid products, net
    
    
    
    
    
    $
    56,741,133
    
    
    $
    59,832,157
    
    
    $
    63,302,220Other income
    
    
    
    
    
    
    716,813
    
    
    
    1,045,710
    
    
    
    797,80357,457,946
    
    
    
    60,877,867
    
    
    
    64,100,023Costs and ExpensesCost of sales
    
    
    
    
    
    
    21,769,142
    
    
    
    21,760,406
    
    
    
    23,260,307Selling, general and
administrative expenses
    
    
    
    
    
    
    22,122,849
    
    
    
    21,266,327
    
    
    
    21,104,728Advertising, cooperative and
promotions
    
    
    
    
    
    
    10,466,740
    
    
    
    6,956,407
    
    
    
    10,345,407Research and development
    
    
    
    
    
    
    603,486
    
    
    
    574,900
    
    
    
    536,590Provision for (benefit from) doubtful
accounts
    
    
    
    
    
    
    12,886
    
    
    
    (21,839
    )
    
    
    (73,657
    )Interest expense
    
    
    
    
    
    
    16,444
    
    
    
    29,090
    
    
    
    10,00354,991,547
    
    
    
    50,565,291
    
    
    
    55,183,378Transaction Costs
    
    
    
    
    
    
    
    
    
    
    717,850
    
    
    
    Total Costs and Expenses
    
    
    
    
    
    
    54,991,547
    
    
    
    51,283,141
    
    
    
    55,183,378Income before Provision
for Income Taxes
    
    
    
    
    
    
    2,466,399
    
    
    
    9,594,726
    
    
    
    8,916,645Provision for Income Tax
    
    
    
    
    
    
    1,053,513
    
    
    
    4,056,931
    
    
    
    3,312,394Net Income
    
    
    
    
    
    $
    1,412,886
    
    
    $
    5,537,795
    
    
    $
    5,604,251Weighted Average Shares OutstandingBasic
    
    
    
    
    
    
    7,054,442
    
    
    
    7,029,611
    
    
    
    7,034,276Diluted
    
    
    
    
    
    
    7,061,646
    
    
    
    7,058,889
    
    
    
    7,133,332Earnings Per Common Share (Note 2):Basic
    
    
    
    
    
    $
    .20
    
    
    $
    .79
    
    
    $
    .80Diluted
    
    
    
    
    
    $
    .20
    
    
    $
    .78
    
    
    $
    .79
   - 5 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 Years Ended November 30,2008
    
    
    2007
    
    
    2006Net Income
    
    $
    1,412,886
    
    
    $
    5,537,795
    
    
    $
    5,604,251Other Comprehensive Income (Loss)Unrealized holding gain (loss)
on investments (Note 6)
    
    
    (875,914
    )
    
    
    (63,228
    )
    
    
    251,206Comprehensive Income
    
    $
    536,972
    
    
    $
    5,474,567
    
    
    $
    5,855,457
   - 6 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
 FOR THE YEARS ENDED NOVEMBER 30, 2008, 2007 AND 2006
 UNREALIZEDGAIN (LOSS)ADDITIONAL
    
    
    
    
    
    
    ON
    
    
    TOTALCOMMON STOCK
    
    
    PAID IN
    
    
    RETAINED
    
    
    MARKETABLE
    
    
    SHAREHOLDERSSHARES
    
    
    AMOUNT
    
    
    CAPITAL
    
    
    EARNINGS
    
    
    SECURITIES
    
    
    EQUITYBalance  December 1, 2005
    
    
    7,179,757
    
    
    $
    71,798
    
    
    $
    5,105,732
    
    
    $
    21,200,465
    
    
    
    ($378,339
    )
    
    $
    25,999,656Issuance of common stock
    
    
    95,500
    
    
    
    955
    
    
    
    46,795
    
    
    
    
    
    
    
    
    
    
    
    47,750Net income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,604,251
    
    
    
    
    
    
    
    5,604,251Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,692,385
    )
    
    
    
    
    
    
    (1,692,385
    )Unrealized gain on marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    251,206
    
    
    
    251,206Purchase and retirement of common stock
    
    
    (272,904
    )
    
    
    (2,730
    )
    
    
    (2,822,957
    )
    
    
    
    
    
    
    
    
    
    
    (2,825,687
    )Balance  November 30, 2006
    
    
    7,002,353
    
    
    
    70,023
    
    
    
    2,329,570
    
    
    
    25,112,331
    
    
    
    (127,133
    )
    
    
    27,384,791Issuance of common stock
    
    
    52,089
    
    
    
    521
    
    
    
    (521
    )
    
    
    
    
    
    
    
    
    
    
    Net income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,537,795
    
    
    
    
    
    
    
    5,537,795Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,109,040
    )
    
    
    
    
    
    
    (2,109,040
    )Unrealized (loss) on marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (63,228
    )
    
    
    (63,228
    )Balance  November 30, 2007
    
    
    7,054,442
    
    
    
    70,544
    
    
    
    2,329,049
    
    
    
    28,541,086
    
    
    
    (190,361
    )
    
    
    30,750,318Net Income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,412,886
    
    
    
    
    
    
    
    1,412,886Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,033,411
    )
    
    
    
    
    
    
    (3,033,411
    )Unrealized (loss) on marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (875,914
    )
    
    
    (875,914
    )Balance  November 30, 2008
    
    
    7,054,442
    
    
    $
    70,544
    
    
    $
    2,329,049
    
    
    $
    26,920,561
    
    
    
    ($1,066,275
    )
    
    $
    28,253,879
   - 7 -




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##### Table of Contents



CCA
INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 FOR THE YEARS ENDED NOVEMBER 30,
 2008
    
    
    2007
    
    
    2006Cash Flows from Operating Activities:Net income
    
    $
    1,412,886
    
    
    $
    5,537,795
    
    
    $
    5,604,251Adjustments to reconcile net
income to net cash provided by
operating activities:Depreciation and amortization
    
    
    246,165
    
    
    
    257,555
    
    
    
    227,039(Gain) on sale of securities
    
    
    (88,096
    )
    
    
    (60,697
    )
    
    
    (62,012
    )Loss on sale or impairment
of intangible assets
    
    
    1,332
    
    
    
    21,745
    
    
    
    112,901(Increase) decrease in deferred
income taxes
    
    
    (321,855
    )
    
    
    410,116
    
    
    
    (363,045
    )Decrease (increase)in accounts receivable
    
    
    888,463
    
    
    
    (1,930,982
    )
    
    
    2,072,202(Increase) decrease in inventory
    
    
    (75,476
    )
    
    
    (1,507,309
    )
    
    
    204,137Decrease (increase) in prepaid expenses
and sundry receivables
    
    
    52,893
    
    
    
    53,982
    
    
    
    (158,741
    )(Increase) decrease in prepaid income
taxes and refunds due
    
    
    (714,465
    )
    
    
    (839,693
    )
    
    
    165,560(Increase) decrease in other assets
    
    
    
    
    
    
    (17,800
    )
    
    
    825Increase (decrease) in accounts payable and
accrued liabilities
    
    
    1,828,052
    
    
    
    250,033
    
    
    
    (629,667
    )(Decrease) increase in income taxes payable
    
    
    
    
    
    
    (413,869
    )
    
    
    413,869Net Cash Provided by Operating
Activities
    
    
    3,229,899
    
    
    
    1,760,876
    
    
    
    7,587,319Cash Flows from Investing Activities:Acquisition of property and equipment
    
    
    (289,533
    )
    
    
    (260,453
    )
    
    
    (309,594
    )Acquisition of intangible assets
    
    
    (250,000
    )
    
    
    ( 522
    )
    
    
    (45,161
    )Purchase of available for sale securities
    
    
    (22,016,587
    )
    
    
    (14,824,908
    )
    
    
    (12,588,205
    )Proceeds from sale of available for
sales securities
    
    
    24,440,000
    
    
    
    17,605,791
    
    
    
    10,636,835Net Cash Provided by (Used in)
Investing Activities
    
    
    1,883,880
    
    
    
    2,519,908
    
    
    
    (2,306,125
    )Cash Flows from Financing Activities:Purchase of common shares
    
    
    
    
    
    
    
    
    
    
    (2,825,687
    )Proceeds from exercise of stock options
    
    
    
    
    
    
    
    
    
    
    47,749Increase in capital lease obligation
    
    
    20,814
    
    
    
    80,036
    
    
    
    151,407Payments for capital lease obligation
    
    
    (51,532
    )
    
    
    (38,352
    )
    
    
    (28,890
    )Dividends paid
    
    
    (2,892,322
    )
    
    
    (1,965,111
    )
    
    
    (1,776,975
    )Net Cash (Used in) Financing Activities
    
    
    (2,923,040
    )
    
    
    (1,923,427
    )
    
    
    (4,432,396
    )Net Increase In Cash
    
    
    2,190,739
    
    
    
    2,357,357
    
    
    
    848,798Cash at Beginning of Year
    
    
    6,743,960
    
    
    
    4,385,340
    
    
    
    3,536,542Cash and Cash Equivalents at End of Year
    
    $
    8,934,699
    
    
    $
    6,743,960
    
    
    $
    4,385,340Supplemental Disclosures of Cash
Flow InformationCash paid during the year for:Interest
    
    $
    16,444
    
    
    $
    29,090
    
    
    $
    10,003Income taxes
    
    
    2,086,300
    
    
    
    4,882,361
    
    
    
    2,256,400Supplemental Disclosure of Non-Cash
Information:Dividends declared and accrued
    
    $
    775,989
    
    
    $
    634,900
    
    
    $
    490,970Retirement of -0-, - 0 -, and 272,904 shares of
treasury stock, respectively
    
    
    
    
    
    
    
    
    
    
    2,825,687
   - 8 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 ORGANIZATION AND DESCRIPTION OF BUSINESS
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Principles of Consolidation:
  Estimates and Assumptions:
  Other Comprehensive Income:
  Short-Term Investments and Marketable Securities:
   - 9 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Accounts Receivable
  Statements of Cash Flows Disclosure:
     Inventories:
    - 10 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Property and Equipment and Depreciation and Amortization
   Machinery and equipment
    
    5-7 YearsFurniture and fixtures
    
    3-10 YearsTools, dies and masters
    
    3 YearsTransportation equipment
    
    5 YearsLeasehold improvements
    
    Remaining life of the lease
(ranging from 1-9 years)
 Intangible Assets:
  Web Site Costs:
  Financial Instruments:
  Income Taxes:
   - 11 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Tax Credits:
  Earnings Per Common Share:
  Revenue Recognition:
  Sales Incentives
  Advertising Costs:
  Shipping Costs:
   - 12 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Stock Options:
  Reclassifications
  Recent Accounting Pronouncements
     - 13 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recent Accounting Pronouncements (Continued)
     - 14 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recent Accounting Pronouncements (Continued)
 
     - 15 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INVENTORIES
  2008
    
    
    2007Raw materials
    
    $
    4,880,267
    
    
    $
    4,717,225Finished goods
    
    
    3,052,531
    
    
    
    3,140,097$
    7,932,798
    
    
    $
    7,857,322
  PROPERTY AND EQUIPMENT
  2008
    
    
    2007Machinery and equipment
    
    $
    190,308
    
    
    $
    130,346Office furniture and equipment
    
    
    813,819
    
    
    
    795,714Transportation equipment
    
    
    10,918
    
    
    
    10,918Tools, dies, and masters
    
    
    360,701
    
    
    
    379,171Capitalized lease obligations
    
    
    263,067
    
    
    
    242,254Web Site
    
    
    20,000
    
    
    
    Leasehold improvements
    
    
    357,582
    
    
    
    281,5822,016,395
    
    
    
    1,839,985Less: Accumulated depreciation
and amortization
    
    
    1,405,169
    
    
    
    1,277,457Property and Equipment  Net
    
    $
    611,226
    
    
    $
    562,528
  INTANGIBLE ASSETS
  2008
    
    
    2007Trademarks and patents
    
    $
    886,608
    
    
    $
    636,608Less: Accumulated amortization
    
    
    158,892
    
    
    
    152,231Intangible Assets  Net
    
    $
    727,716
    
    
    $
    484,377
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INTANGIBLE ASSETS (CONTINUED)
  SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES
  November 30,
    
    
    November 30,2008
    
    
    2007COST
    
    
    MARKET
    
    
    COST
    
    
    MARKETCurrent:Corporate obligations
    
    $
    200,000
    
    
    $
    197,714
    
    
    $
    5,552,779
    
    
    $
    5,555,917Government obligations
(including mortgage
backed securities)
    
    
    6,200,029
    
    
    
    6,248,363
    
    
    
    2,335,358
    
    
    
    2,140,921Preferred stock
    
    
    50,000
    
    
    
    21,640
    
    
    
    50,000
    
    
    
    38,760Common Stock
    
    
    51,648
    
    
    
    44,628
    
    
    
    51,649
    
    
    
    58,860Mutual funds
    
    
    215,274
    
    
    
    114,582
    
    
    
    215,274
    
    
    
    151,989Other equity
    
    
    70,206
    
    
    
    21,430
    
    
    
    70,206
    
    
    
    57,377Total
    
    
    6,787,157
    
    
    
    6,648,357
    
    
    
    8,275,266
    
    
    
    8,003,824Non-Current:Corporate obligations
    
    
    598,370
    
    
    
    577,334
    
    
    
    400,000
    
    
    
    400,000Government obligations
    
    
    500,000
    
    
    
    460,000
    
    
    
    3,445,577
    
    
    
    3,626,508Preferred stock
    
    
    2,774,845
    
    
    
    1,908,406
    
    
    
    774,845
    
    
    
    674,996Other equity investments
    
    
    
    
    
    
    
    
    
    
    100,000
    
    
    
    100,000Total
    
    
    3,873,215
    
    
    
    2,945,740
    
    
    
    4,720,422
    
    
    
    4,801,504Total
    
    $
    10,660,372
    
    
    $
    9,594,097
    
    
    $
    12,995,687
    
    
    $
    12,805,328
  - 17 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
  COL. A
    
    
    
    
    
    
    
    
    
    COL. B
    
    
    COL. C
    
    
    COL.D
    
    
    COL.EAmount atWhich EachPortfolio ofEquity SecurityNumber
    
    
    
    
    
    
    
    
    
    
    Issues andof Units-
    
    
    
    
    
    
    
    
    
    
    Each OtherPrincipal
    
    
    
    
    
    
    Market Value
    
    
    SecurityAmount of
    
    
    
    
    
    
    of Each Issue
    
    
    Issue CarriedName of Issuer and
    
    Maturity
    
    
    Interest
    
    
    Bonds and
    
    
    Cost of
    
    
    at Balance
    
    
    in BalanceTitle of Each Issue
    
    Date
    
    
    Rate
    
    
    Notes
    
    
    Each Issue
    
    
    Sheet Date
    
    
    SheetCORPORATE OBLIGATIONS:Caterpillar Fin Service Corp
    
    
    10/15/09
    
    
    
    4.750
    %
    
    
    200,000
    
    
    $
    200,000
    
    
    $
    197,714
    
    
    $
    197,714Merrill Lynch & Co
    
    
    08/04/10
    
    
    
    4.790
    
    
    
    200,000
    
    
    
    199,614
    
    
    
    191,702
    
    
    
    191,702Morgan Stanley
    
    
    01/15/10
    
    
    
    4.000
    
    
    
    200,000
    
    
    
    199,106
    
    
    
    188,620
    
    
    
    188,620Toyoto Motor
    
    
    04/28/10
    
    
    
    2.850
    
    
    
    200,000
    
    
    
    199,650
    
    
    
    197,012
    
    
    
    197,012798,370
    
    
    
    775,048
    
    
    
    775,048GOVERNMENT OBLIGATIONS:Goldman Sachs Group
    
    
    01/15/09
    
    
    
    3.875
    
    
    
    250,000
    
    
    
    249,125
    
    
    
    248,618
    
    
    
    248,618NJ ST HGR ED
    
    
    12/01/40
    
    
    
    0.000
    
    
    
    500,000
    
    
    
    500,000
    
    
    
    460,000
    
    
    
    460,000US Treasury Bill
    
    
    01/15/09
    
    
    
    0.000
    
    
    
    4,500,000
    
    
    
    4,455,584
    
    
    
    4,499,820
    
    
    
    4,499,820US Treasury Bill
    
    
    01/22/09
    
    
    
    0.000
    
    
    
    1,500,000
    
    
    
    1,495,320
    
    
    
    1,499,925
    
    
    
    1,499,9256,700,029
    
    
    
    6,708,363
    
    
    
    6,708,363
  - 18 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
 COL. A
    
    
    
    
    
    
    
    
    
    COL. B
    
    
    COL. C
    
    
    COL.D
    
    
    COL.EAmount atWhich EachPortfolio ofNumber
    
    
    
    
    
    
    
    
    
    
    Equity Securityof Units-
    
    
    
    
    
    
    
    
    
    
    Issues andPrincipal
    
    
    
    
    
    
    Market Value
    
    
    Each OtherAmount of
    
    
    
    
    
    
    of Each Issue
    
    
    Security IssueName of Issuer and
    
    Maturity
    
    
    Interest
    
    
    Bonds and
    
    
    Cost of
    
    
    at Balance
    
    
    Carried inTitle of Each Issue
    
    Date
    
    
    Rate
    
    
    Notes
    
    
    Each Issue
    
    
    Sheet Date
    
    
    Balance SheetEQUITY:Preferred Stock:ABN Amro Cap Fund
    
    
    12/31/08
    
    
    
    5.900
    
    
    
    2,000
    
    
    
    50,000
    
    
    
    21,640
    
    
    
    21,640Bank of America Ser H
    
    
    05/01/13
    
    
    
    8.200
    
    
    
    20,000
    
    
    
    500,000
    
    
    
    416,400
    
    
    
    416,400Citigroup Dep Shs 1/1200th
    
    
    06/15/13
    
    
    
    8.500
    
    
    
    20,000
    
    
    
    500,000
    
    
    
    332,000
    
    
    
    332,000Deutsche Bank Capital TR V
    
    
    06/30/18
    
    
    
    8.050
    
    
    
    20,000
    
    
    
    500,000
    
    
    
    314,800
    
    
    
    314,800General Electric Cap Corp
    
    
    11/15/32
    
    
    
    6.100
    
    
    
    8,800
    
    
    
    224,845
    
    
    
    175,362
    
    
    
    175,362JP Morgan Chase
    
    
    06/15/33
    
    
    
    5.875
    
    
    
    2,000
    
    
    
    50,000
    
    
    
    41,360
    
    
    
    41,360Merrill Lynch Dep Shs 1/1200th
    
    
    05/28/13
    
    
    
    8.625
    
    
    
    20,000
    
    
    
    500,000
    
    
    
    358,000
    
    
    
    358,000MetLife Floater
    
    
    06/15/10
    
    
    
    4.000
    
    
    
    8,000
    
    
    
    200,000
    
    
    
    70,400
    
    
    
    70,400Morgan Stanley Cap Tr
    
    
    07/15/33
    
    
    
    5.750
    
    
    
    4,000
    
    
    
    100,000
    
    
    
    49,636
    
    
    
    49,636Wells Fargo Cap Tr VIII
    
    
    08/01/33
    
    
    
    5.625
    
    
    
    8,000
    
    
    
    200,000
    
    
    
    150,448
    
    
    
    150,4482,824,845
    
    
    
    1,930,046
    
    
    
    1,930,046
  - 19 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
 COL. A
    
    
    
    
    
    
    
    
    
    COL. B
    
    
    COL. C
    
    
    COL. D
    
    
    COL. EAmount atWhichEach Portfolioof EquitySecurityNumber of
    
    
    
    
    
    
    
    
    
    
    IssuesUnits-Principal
    
    
    
    
    
    
    Market Value of
    
    
    and EachAmount of
    
    
    
    
    
    
    Each Issue at
    
    
    Other SecurityName of Issuer and
    
    Maturity
    
    
    Interest
    
    
    Bonds and
    
    
    Cost of
    
    
    Balance
    
    
    Issue Carried inTitle of Each Issue
    
    Date
    
    
    Rate
    
    
    Notes
    
    
    Each Issue
    
    
    Sheet Date
    
    
    Balance SheetCommon Stock:DTE Energy Company
    
    
    
    
    
    
    
    
    
    
    1,200
    
    
    
    51,648
    
    
    
    44,628
    
    
    
    44,628Mutual Funds:Dreyfus Premier Ltd High Income
    
    
    
    
    
    
    
    
    
    
    16,296.314
    
    
    
    215,274
    
    
    
    114,582
    
    
    
    114,582Other Equity Investments:PIMCO Floating Rate Strategy
    
    
    
    
    
    
    
    
    
    
    2,900
    
    
    
    70,206
    
    
    
    21,430
    
    
    
    21,430Totals
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    10,660,372
    
    
    $
    9,594,097
    
    
    $
    9,594,097
  - 20 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
        - 21 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
   Beginning Balance as of December 1, 2007
    
    $
    500,000Unrealized (loss)
    
    
    (40,000
    )Ending Balance as of November 30, 2008
    
    $
    460,000
  NOTES PAYABLE AND SUBORDINATED DEBENTURES
   - 22 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INCOME TAXES
   November 30, 2008Classified AsDeferred
    
    
    Short-Term
    
    
    Long- TermType
    
    Amount
    
    
    Tax
    
    
    Asset
    
    
    (Liability)Depreciation
    
    $
    74,244
    
    
    $
    29,623
    
    
    $
    
    
    
    $
    29,623Reserve for bad debts
    
    
    154,290
    
    
    
    61,562
    
    
    
    61,562
    
    
    
    Reserve for returns
    
    
    668,738
    
    
    
    266,827
    
    
    
    266,827
    
    
    
    Reserve for
obsolete inventory
    
    
    578,941
    
    
    
    230,997
    
    
    
    230,997
    
    
    
    Vacation accrual
    
    
    501,096
    
    
    
    199,937
    
    
    
    199,937
    
    
    
    Charitable contributions
    
    
    572,568
    
    
    
    228,455
    
    
    
    114,659
    
    
    
    113,796Section 263A costs
    
    
    250,000
    
    
    
    99,750
    
    
    
    99,750
    
    
    
    Net deferred income tax
    
    
    
    
    
    $
    1,117,151
    
    
    $
    973,732
    
    
    $
    143,419
 November 30, 2007Classified AsDeferred
    
    
    Short-Term
    
    
    Long-TermType
    
    Amount
    
    
    Tax
    
    
    Asset
    
    
    (Liability)Depreciation
    
    $
    74,244
    
    
    $
    29,475
    
    
    $
    
    
    
    $
    29,475Reserve for bad debts
    
    
    141,607
    
    
    
    56,218
    
    
    
    56,218
    
    
    
    Reserve for returns
    
    
    452,695
    
    
    
    179,720
    
    
    
    179,720
    
    
    
    Reserve for
obsolete inventory
    
    
    604,746
    
    
    
    240,084
    
    
    
    240,084
    
    
    
    Vacation accrual
    
    
    484,971
    
    
    
    192,534
    
    
    
    192,534
    
    
    
    Section 263A costs
    
    
    245,000
    
    
    
    97,265
    
    
    
    97,265
    
    
    
    Net deferred income tax
    
    
    
    
    
    $
    795,296
    
    
    $
    765,821
    
    
    $
    29,475
  November 30, 2008Federal
    
    
    State & Local
    
    
    TotalCurrent tax expense
    
    $
    1,030,348
    
    
    $
    345,020
    
    
    $
    1,375,368Deferred tax (benefit)
    
    
    (241,116
    )
    
    
    (80,739
    )
    
    
    (321,855
    )$
    789,232
    
    
    $
    264,281
    
    
    $
    1,053,513
  - 23 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INCOME TAXES (Continued)
 November 30, 2007Federal
    
    
    State & Local
    
    
    TotalCurrent tax expense
    
    $
    2,823,468
    
    
    $
    823,347
    
    
    $
    3,646,815Deferred tax expense
    
    
    317,523
    
    
    
    92,593
    
    
    
    410,116$
    3,140,991
    
    
    $
    915,940
    
    
    $
    4,056,931
 November 30, 2006Federal
    
    
    State & Local
    
    
    TotalCurrent tax expense
    
    $
    2,892,278
    
    
    $
    849,564
    
    
    $
    3,741,842Deferred tax (benefit)
    
    
    (331,944
    )
    
    
    (97,504
    )
    
    
    (429,448
    )$
    2,560,334
    
    
    $
    752,060
    
    
    $
    3,312,394
  Federal
    
    
    State & Local
    
    
    TotalNovember 30, 2008
    
    $
    1,020,948
    
    
    $
    533,210
    
    
    $
    1,554,158November 30, 2007
    
    $
    625,350
    
    
    $
    214,343
    
    
    $
    839,693
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INCOME TAXES (Continued)
  2008
    
    
    2007
    
    
    2006Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    PercentOf Pretax
    
    
    
    
    
    
    Of Pretax
    
    
    
    
    
    
    Of PretaxAmount
    
    
    Income
    
    
    Amount
    
    
    Income
    
    
    Amount
    
    
    IncomeIncome tax expense
at federal statutory rate
    
    $
    838,576
    
    
    
    34.00
    %
    
    $
    3,262,207
    
    
    
    34.00
    %
    
    $
    3,031,659
    
    
    
    34.00
    %Increases (decreases) in taxes
resulting from:State income taxes, net of
federal
income tax benefit
    
    
    141,078
    
    
    
    5.72
    
    
    
    548,512
    
    
    
    5.72
    
    
    
    560,712
    
    
    
    6.29Non-deductible expenses and
other adjustments
    
    
    73,859
    
    
    
    2.99
    
    
    
    246,212
    
    
    
    2.56
    
    
    
    (279,977
    )
    
    
    (3.14
    )Income tax expense
at effective rate
    
    $
    1,053,513
    
    
    
    42.71
    %
    
    $
    4,056,931
    
    
    
    42.28
    %
    
    $
    3,312,394
    
    
    
    37.15
    %
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 STOCK-BASED COMPENSATION
     Year Ended November 30,2008
    
    
    2007Net income
    
    $
    1,412,886
    
    
    $
    5,537,795Add: Total stock-based employee
compensation expense determined
under fair value based method for
all awards net of related tax effects
    
    
    
    
    
    
    1,280Pro forma net earnings
    
    $
    1,412,886
    
    
    $
    5,539,075
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 STOCK-BASED COMPENSATION (Continued)
  Weighted AverageNumber of
    
    
    exercise price of
    
    
    Weighted Average
    
    
    IntrinsicShares
    
    
    Outstanding Options
    
    
    Remaining Life
    
    
    ValueOutstanding
December 1, 2006
    
    
    181,000
    
    
    $
    5.88
    
    
    
    1.83Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    (55,000
    )
    
    $
    0.50
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding November
30, 2007
    
    
    126,000
    
    
    $
    8.00
    
    
    
    1.35Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding November
30, 2008
    
    
    126,000
    
    
    $
    8.00
    
    
    
    .35
 ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE
  November 30,2008
    
    
    2007(In Thousands)Coop advertising
    
    $
    849
    
    
    $
    1,214Accrued returns
    
    
    1,443
    
    
    
    964Accrued bonuses
    
    
    
    
    
    
    841Media
    
    
    1,326
    
    
    
    Vacation accrual
    
    
    
    
    
    
    485$
    3,618
    
    
    $
    3,504
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 OTHER INCOME
  November 30,2008
    
    
    2007
    
    
    2006Interest income
    
    $
    340,795
    
    
    $
    755,569
    
    
    $
    569,417Dividend income
    
    
    94,775
    
    
    
    33,697
    
    
    
    43,820Realized gain (loss) on sale of
Securities
    
    
    88,096
    
    
    
    60,697
    
    
    
    62,012Royalty income
    
    
    169,482
    
    
    
    125,158
    
    
    
    108,249Miscellaneous
    
    
    23,665
    
    
    
    70,589
    
    
    
    14,305$
    716,813
    
    
    $
    1,045,710
    
    
    $
    797,803
 COMMITMENTS AND CONTINGENCIES
 Leases
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Leases (Continued)
    Year Ending November 30,2009
    
    
    751,4212010
    
    
    692,1062011
    
    
    665,3232012
    
    
    326,1972013
    
    
    
 Royalty Agreements
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 COMMITMENTS AND CONTINGENCIES (Continued)
 Royalty Agreements (Continued)
      - 30 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 COMMITMENTS AND CONTINGENCIES (Continued)
 Royalty Agreements (Continued)
   SummaryLicensor
    
    2008
    
    
    2007
    
    
    2006A
    
    $
    56,051
    
    
    $
    39,290
    
    
    $
    43,367B
    
    
    82,541
    
    
    
    91,662
    
    
    
    92,630C
    
    
    17,695
    
    
    
    18,020
    
    
    
    11,892D
    
    
    
    
    
    
    5,692
    
    
    
    (88
    )E
    
    
    2
    
    
    
    511
    
    
    
    3,237F
    
    
    
    
    
    
    3570
    
    
    
    1,054G
    
    
    
    
    
    
    
    
    
    
    H
    
    
    44,866
    
    
    
    196,683
    
    
    
    74,148I
    
    
    37,071
    
    
    
    33,283
    
    
    
    81,363J
    
    
    
    
    
    
    
    
    
    
    (60,402
    )K
    
    
    240,215
    
    
    
    195,839
    
    
    
    37,939L
    
    
    4,815
    
    
    
    50,216
    
    
    
    M
    
    
    5,876
    
    
    
    
    
    
    
    N
    
    
    508
    
    
    
    
    
    
    
    
 Employment Contracts
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 COMMITMENTS AND CONTINGENCIES (Continued)
 Employment Contracts (Continued)
  Collective Bargaining Agreement
  Litigation
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 COMMITMENTS AND CONTINGENCIES (Continued)
 Dividends and Capital Transactions
   401 (K) PLAN
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 CONCENTRATION OF RISK
   Customer
    
    2008
    
    
    2007
    
    
    2006Walmart
    
    
    44
    %
    
    
    40
    %
    
    
    36
    %Walgreen
    
    
    10
    %
    
    
    8
    %
    
    
    12
    %Rite Aid
    
    
    5
    %
    
    
    8
    %
    
    
    *CVS
    
    
    7
    %
    
    
    6
    %
    
    
    6
    %McLanes
    
    
    *
    
    
    
    5
    %
    
    
    6
    %Foreign Sales
    
    
    4
    %
    
    
    3
    %
    
    
    2
    %
 *
    
    under 5%   Category
    
    2008
    
    
    2007
    
    
    2006Dietary Supplement
    
    
    33
    %
    
    
    31
    %
    
    
    31
    %Skin Care
    
    
    29
    %
    
    
    29
    %
    
    
    30
    %Oral Care
    
    
    25
    %
    
    
    25
    %
    
    
    24
    %Nail Care
    
    
    10
    %
    
    
    11
    %
    
    
    9
    %
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 CONCENTRATION OF RISK (Continued)
  TRANSACTION EXPENSES
  SUBSEQUENT EVENTS
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 EARNINGS PER SHARE
  Year Ended November 30,2008
    
    
    2007
    
    
    2006Net income available for common
shareholders, basic and diluted
    
    $
    1,412,886
    
    
    $
    5,537,795
    
    
    $
    5,604,251Weighted average common stock
outstanding- Basic
    
    
    7,054,442
    
    
    
    7,029,611
    
    
    
    7,034,276Net effect of dilutive stock options
    
    
    7,204
    
    
    
    29,278
    
    
    
    99,056Weighted average common stock and
common stock equivalents  Diluted
    
    
    7,061,646
    
    
    
    7,058,889
    
    
    
    7,133,332Basic earnings per share
    
    $
    .20
    
    
    $
    .79
    
    
    $
    .80Diluted earnings per share
    
    $
    .20
    
    
    $
    .78
    
    
    $
    .79
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##### Table of Contents



SCHEDULE II
 CCA INDUSTRIES, INC. AND SUBSIDIARIES
VALUATION ACCOUNTS
 YEARS ENDED NOVEMBER 30, 2008, 2007 AND 2006
 COL. A
    
    
    
    
    
    COL. B
    
    
    COL. C
    
    
    COL. D
    
    
    COL. EAdditionsBalance at
    
    
    Charged To
    
    
    
    
    
    
    BalanceBeginning
    
    
    Costs and
    
    
    
    
    
    
    At EndDescription
    
    
    
    
    
    Of Year
    
    
    Expenses
    
    
    Deductions
    
    
    Of YearYear Ended November
30, 2008Allowance for
doubtful accounts
    
    
    
    
    
    $
    141,607
    
    
    $
    12,684
    
    
    $
    
    
    
    $
    154,291Reserve for returns
and allowances
    
    
    
    
    
    
    732,695
    
    
    
    2,118,593
    
    
    
    2,182,550
    
    
    
    668,738$
    874,302
    
    
    $
    2,131,277
    
    
    $
    2,182,550
    
    
    $
    823,029Reserve of
inventory
obsolescence
    
    
    
    
    
    $
    604,746
    
    
    $
    173,715
    
    
    $
    199,520
    
    
    $
    578,941Year Ended November
30, 2007:Allowance for
doubtful accounts
    
    
    
    
    
    $
    185,779
    
    
    $
    (42,544
    )
    
    $
    1,628
    
    
    $
    141,607Reserve for returns
and allowances
    
    
    
    
    
    
    840,418
    
    
    
    6,039,823
    
    
    
    6,147,545
    
    
    
    732,696$
    1,026,197
    
    
    $
    5,997,279
    
    
    $
    6,149,173
    
    
    $
    874,303Reserve of
inventory
obsolescence
    
    
    
    
    
    $
    777,715
    
    
    $
    62,827
    
    
    $
    235,796
    
    
    $
    604,746Year Ended November
30, 2006:Allowance for
doubtful accounts
    
    
    
    
    
    $
    260,366
    
    
    $
    (73,657
    )
    
    $
    930
    
    
    $
    185,779Reserve for returns
and allowances
    
    
    
    
    
    
    678,348
    
    
    
    4,520,660
    
    
    
    4,358,590
    
    
    
    840,418$
    938,714
    
    
    $
    4,447,003
    
    
    $
    4,359,520
    
    
    $
    1,026,197Reserve of
inventory
obsolescence
    
    
    
    
    
    $
    854,764
    
    
    $
    625,743
    
    
    $
    702,792
    
    
    $
    777,715
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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description31.1
    
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) included herein31.2
    
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) included herein32.1
    
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350 included herein32.2
    
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350 included herein
  - 38 -