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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, 2009
 Commission
File Number 001-31643
 CCA INDUSTRIES, INC.
  DELAWARE
    
    04-2795439(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 200 Murray Hill Parkway, East Rutherford, New Jersey 07073
 (Registrants telephone number, including area code)
  
 
 Yes o No þ
 o þ
 þ o
 þ o
 o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company
þ(Do not check if a smaller reporting company)
 o þ
  Class of Voting Stock
    
    Market Value5,514,866 shares; Common
Stock, $.01 par value
    
    $16,820,341




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Headings in this FormForm 10-K
    
    10-K for Year EndedItem No.
    
    November 30, 20091. Business
    
    Business2. Properties
    
    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, Related
Stockholder Matters and Issuer
Purchases of Equity Securities
    
    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, Executive
Officers and Corporate
Governance
    
    Directors and Executive
Officers of the Registrant
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Headings in this FormForm 10-K
    
    10-K for Year EndedItem No.
    
    November 30, 200911. 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, and
Director Independence
    
    Certain Relationships
and Related Transactions14. Principal Accounting Fees
and Services
    
    Principal Accountant Fees
and Services15. Exhibits, Financial
Statements Schedules
    
    Exhibits, Financial
Statements, Schedules,
and Reports on Form
8-K
   - ii -




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TABLE OF CONTENTS
 Item
    
    PagePART I1. Business
    
    
    12. Property
    
    
    63. Legal Proceedings
    
    
    74. Submission of Matters to a Vote of Security Holders
    
    
    7PART II5. Market for the Companys Common Stock and Related
Shareholder Matters
    
    
    86. Selected Financial Data
    
    
    107. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    117A. Quantitative and Qualitative Disclosure About Market Risk
    
    
    258. Financial Statements and Supplementary Data
    
    
    259. Changes In and Disagreements with Accountants On Accounting
and Financial Disclosure
    
    
    269A. Controls and Procedures
    
    
    26PART III10. Directors and Executive Officers of the Registrant
    
    
    2811. Executive Compensation
    
    
    3012. Security Ownership of Certain Beneficial Owners and
Management and Related Shareholder Matters
    
    
    3713. Certain Relationships and Related Transactions
    
    
    3914. Principal Accountant Fees and Services
    
    
    39PART IV15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
    
    
    41Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
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PART I
 
 Item 1. BUSINESS
 Cautionary Statements Regarding Forward-Looking Statements
  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
   - 5 -




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Competition
  Government Regulation
  
 Item 2. PROPERTY
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Item 3. LEGAL PROCEEDINGS
 Denise Wally v. CCA
Industries, Inc
  
 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  (1)
    
    David Edell, Ira W. Berman, Jack Polak and Stanley Kreitman were elected as
directors by the holders of the Class A Common stock. The Class A Common Stock
shareholders have the right to elect four members of the Board of Directors. No proxy
was solicited therefore, whereas Messrs. Berman and Edell own 100% of the Class A
Common stock, and they proposed themselves, Mr. Polak and Mr. Kreitman.(2)
    
    As proposed by Management, Dunnan Edell, James P. Mastrian and Robert Lage were
elected as directors by the holders of the Common stock.(3)
    
    The Board of Directors appointment of KGS LLP as the Companys independent
registered public accounting firm for the fiscal year ending November 30, 2009 was
approved.The Company has not submitted any matter to a vote of security holders since the 2009
Annual Meeting.
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PART II
 
 Item 5. MARKET FOR THE COMPANYS COMMON STOCK AND RELATED SHAREHOLDER MATTERS
   Quarter Ended
    
    2009
    
    
    2008
    
    
    2007February 28/29
    
    $
    2.55 - $4.24
    
    
    $
    9.90 - $8.91
    
    
    $
    12.12 - $11.06May 31
    
    $
    2.05 - $3.40
    
    
    $
    9.65 - $8.53
    
    
    $
    12.04 - $9.03August 31
    
    $
    2.74 - $4.20
    
    
    $
    8.85 - $6.35
    
    
    $
    10.60 - $8.94November 30
    
    $
    5.50 - $3.81
    
    
    $
    6.40 - $3.60
    
    
    $
    10.25 - $9.20
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Item 6. SELECTED FINANCIAL DATA
 Year Ended November 30,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Statement of IncomeSales, Net (1)
    
    $
    57,001,999
    
    
    $
    56,741,133
    
    
    $
    59,832,157
    
    
    $
    63,302,220
    
    
    $
    61,181,344Other income
    
    
    670,165
    
    
    
    716,813
    
    
    
    1,045,710
    
    
    
    797,803
    
    
    
    572,909Costs and Expenses (1)
    
    
    52,062,040
    
    
    
    54,991,547
    
    
    
    51,283,141
    
    
    
    55,183,378
    
    
    
    54,646,715Income before provision for
Income Taxes
    
    
    5,610,124
    
    
    
    2,466,399
    
    
    
    9,594,726
    
    
    
    8,916,645
    
    
    
    7,107,528Net Income
    
    $
    3,431,644
    
    
    $
    1,412,886
    
    
    $
    5,537,795
    
    
    $
    5,604,251
    
    
    $
    3,785,502Earnings Per Share:Basic
    
    $
    0.49
    
    
    $
    0.20
    
    
    $
    0.79
    
    
    $
    0.80
    
    
    $
    0.53Diluted
    
    $
    0.49
    
    
    $
    0.20
    
    
    $
    0.78
    
    
    $
    0.79
    
    
    $
    0.52Weighted Average Number
of Shares Outstanding  Basic
    
    
    7,054,442
    
    
    
    7,054,442
    
    
    
    7,029,611
    
    
    
    7,034,276
    
    
    
    7,145,297Weighted Average Number
of Shares Outstanding  Diluted
    
    
    7,054,442
    
    
    
    7,061,646
    
    
    
    7,058,889
    
    
    
    7,133,332
    
    
    
    7,317,994
 As At November 30,Balance Sheet Data:
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Working Capital
    
    $
    25,973,568
    
    
    $
    23,836,264
    
    
    $
    24,922,016
    
    
    $
    22,295,983
    
    
    $
    18,602,107Total Assets
    
    
    39,789,203
    
    
    
    39,345,861
    
    
    
    39,903,876
    
    
    
    36,516,571
    
    
    
    35,309,308Total Liabilities
    
    
    9,569,355
    
    
    
    11,091,982
    
    
    
    9,153,558
    
    
    
    9,131,780
    
    
    
    9,309,652Total Shareholders Equity
    
    
    30,219,848
    
    
    
    28,253,879
    
    
    
    30,750,318
    
    
    
    27,284,791
    
    
    
    25,999,656Cash Dividends Declared
per Common Share
    
    $
    0.32
    
    
    $
    0.43
    
    
    $
    0.30
    
    
    $
    0.24
    
    
    $
    0.16
 (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 year ended November 30, 2005. The reclassification did not
affect the net income for that year.  - 10 -




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Item 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Overview
  Comparison of Results for Fiscal Years 2009 and 2008
   - 11 -




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Comparison of Results for Fiscal Years 2008 and 2007
   - 13 -




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Liquidity and Capital Resources
    - 15 -




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Inventory, Seasonality, Inflation and General Economic Factors
   - 17 -




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Contractual Obligations
  Less than
    
    
    
    
    
    
    
    
    
    
    More than1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 yearsLeases on Premises (1)
    
    $
    694,120
    
    
    $
    1,041,180
    
    
    $
    
    
    
    $
    Royalty Expense (2)
    
    
    152,500
    
    
    
    570,000
    
    
    
    570,000
    
    
    
    190,000Employment Contracts (3)
    
    
    2,234,533
    
    
    
    3,556,928
    
    
    
    2,741,205
    
    
    
    Capital Lease Obligations
    
    
    53,233
    
    
    
    20,929
    
    
    
    
    
    
    
    Open Purchase Orders
    
    
    3,441,971
    
    
    
    
    
    
    
    
    
    
    
    Total Contractual Obligations
    
    $
    6,576,357
    
    
    $
    5,189,037
    
    
    $
    3,311,205
    
    
    $
    190,000
 (1)
    
    The major lease is a net lease requiring a yearly rental of $390,835 plus Common Area
Maintenance CAM. See Section Part I, Item 2. The rental provided above is the base rental
and estimated CAM. CAM for future years is estimated at $150,000. 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 annual rental is $123,285 plus
CPI adjustments, real estate taxes and common area maintenance expenses.
CAM is estimated at $30,000 per year for future years. The figures for both leases above do not
include adjustments for future CPI.(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
2009 sales. The more than 5 years column only reflects one year of minimum payments; the
payments can continue in perpetuity in order to maintain the license. Royalty expense noted
includes Joann Bradvica and LaRosa Innovations, LLC.(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 plus depreciation
and amortization 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, plus 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.  - 19 -




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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 expired 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.  Recent Accounting Pronouncements
    - 20 -




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Cautionary Statements Regarding Forward-Looking Statements
  Concentration of Risk
   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 .
   - 23 -




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Future Success Depends on Continued Success of the Companys Current Products and New
Product Development.
  Denise Wally v. CCA Industries, Inc
  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.
   - 24 -




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The Price of the Companys Stock May Be Volatile
  
 Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
  
 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
  Three Months EndedFiscal 2009
    
    Feb. 28
    
    
    May 31
    
    
    Aug. 31
    
    
    Nov. 30Net Sales
    
    $
    14,758,850
    
    
    $
    14,609,686
    
    
    $
    15,139,754
    
    
    $
    12,493,709Total Revenue
    
    
    14,944,466
    
    
    
    14,748,329
    
    
    
    15,344,595
    
    
    
    12,634,774Cost of Products Sold
    
    
    5,616,212
    
    
    
    5,527,838
    
    
    
    5,616,335
    
    
    
    5,090,190Gross Profit
    
    
    9,142,638
    
    
    
    9,081,848
    
    
    
    9,523,419
    
    
    
    7,403,519Net Income
    
    $
    124,366
    
    
    $
    694,136
    
    
    $
    1,599,346
    
    
    $
    1,013,796Earnings Per Share:Basic
    
    $
    0.02
    
    
    $
    0.10
    
    
    $
    0.23
    
    
    $
    0.14Diluted
    
    $
    0.02
    
    
    $
    0.10
    
    
    $
    0.23
    
    
    $
    0.14
  - 25 -




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Three Months EndedFiscal 2008
    
    Feb. 29
    
    
    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
    
    
    
    5,287,878Gross Profit
    
    
    8,745,883
    
    
    
    10,922,762
    
    
    
    8,686,510
    
    
    
    6,616,836Net Income
    
    $
    343,683
    
    
    $
    790,692
    
    
    $
    1,101,420
    
    
    $
    (822,909
    )Earnings Per Share:Basic
    
    $
    0.05
    
    
    $
    0.11
    
    
    $
    0.16
    
    
    $
    (0.12
    )Diluted
    
    $
    0.05
    
    
    $
    0.11
    
    
    $
    0.16
    
    
    $
    (0.12
    )
 
 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
  
 Item 9A. CONTROLS AND PROCEDURES
   Managements Report on Internal Control Over Financial Reporting
   - 26 -




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/s/ DAVID EDELL

David Edell, Chief Executive Officer/s/ STEPHEN A. HEIT

Stephen A. Heit, Chief Financial Officer
  - 27 -




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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 (Retired June 24, 2009)
    
    
    2007James Mastrian
    
    Director
    
    
    2009
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Committees of the Board of Directors
  
 Item 11. EXECUTIVE COMPENSATION
 Summary Compensation Table
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Long-Term CompensationNumberAll
    
    
    of SharesOther
    
    
    Covered
    
    
    OtherName and
    
    
    
    
    
    
    
    
    
    
    
    
    
    Annual
    
    
    by Stock
    
    
    Long-TermPrincipal
    
    
    
    
    
    Annual Compensation
    
    
    Compen-
    
    
    Options
    
    
    Compen-Position
    
    Year
    
    
    Salary
    
    
    Bonus(1)
    
    
    sation(2)
    
    
    Granted(3)
    
    
    sationDavid Edell,
    
    
    2009
    
    
    $
    878,354
    
    
    $
    513,328
    
    
    $
    43,652
    
    
    
    
    
    
    
    0
    (4)Chief Executive Officer
    
    
    2008
    
    
    
    812,700
    
    
    
    422,285
    
    
    
    43,639
    
    
    
    
    
    
    
    0
    (4)2007
    
    
    
    794,173
    
    
    
    532,807
    
    
    
    44,155
    
    
    
    
    
    
    
    0
    (4)Ira W. Berman,
    
    
    2009
    
    
    $
    878,354
    
    
    $
    513,328
    
    
    $
    45,552
    
    
    
    
    
    
    
    0
    (4)Secretary
and Executive Vice President
    
    
    2008
    
    
    
    812,700
    
    
    
    422,285
    
    
    
    45,443
    
    
    
    
    
    
    
    0
    (4)2007
    
    
    
    794,173
    
    
    
    532,807
    
    
    
    40,699
    
    
    
    
    
    
    
    0
    (4)Dunnan Edell,
    
    
    2009
    
    
    $
    350,000
    
    
    $
    96,000
    
    
    $
    17,909
    
    
    
    
    
    
    
    0President,
Chief Operating Officer
    
    
    2008
    
    
    
    343,269
    
    
    
    96,000
    
    
    
    16,632
    
    
    
    
    
    
    
    02007
    
    
    
    355,962
    
    
    
    120,000
    
    
    
    11,060
    
    
    
    
    
    
    
    0Stephen Heit,
    
    
    2009
    
    
    $
    250,000
    
    
    $
    35,000
    
    
    $
    10,370
    
    
    
    
    
    
    
    0Executive Vice President,
    
    
    2008
    
    
    
    234,615
    
    
    
    24,000
    
    
    
    9,093
    
    
    
    
    
    
    
    0Chief Financial
Officer
    
    
    2007
    
    
    
    229,327
    
    
    
    30,000
    
    
    
    8,081
    
    
    
    
    
    
    
    0Drew Edell,
    
    
    2009
    
    
    $
    275,000
    
    
    $
    48,000
    
    
    $
    12,620
    
    
    
    
    
    
    
    0Executive
Vice President
    
    
    2008
    
    
    
    269,711
    
    
    
    48,000
    
    
    
    11,442
    
    
    
    
    
    
    
    0Product
Development &
Production
    
    
    2007
    
    
    
    279,904
    
    
    
    60,000
    
    
    
    10,008
    
    
    
    
    
    
    
    0Jon Denis,
    
    
    2009
    
    
    $
    325,000
    
    
    $
    15,000
    
    
    $
    13,252
    
    
    
    
    
    
    
    0Senior Executive
    
    
    2008
    
    
    
    318,750
    
    
    
    6,250
    
    
    
    10,578
    
    
    
    
    
    
    
    0Vice President 
Sales
    
    
    2007
    
    
    
    331,250
    
    
    
    50,000
    
    
    
    10,235
    
    
    
    
    
    
    
    0
  - 31 -




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##### Table of Contents



(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. Fiscal 2009 Option Grants and Option Exercises, Year-End Option Valuation, Option Repricing
   Compensation of Directors and Committees of the Board
 Year EndedDirector
    
    Nov. 30, 2009Stanley Kreitman
    
    $
    15,000Robert Lage
    
    
    45,000James Mastrian
    
    
    7,500Jack Polak
    
    
    15,000Seth Hamot (Retired June 24, 2009)
    
    
    7,500Total
    
    $
    90,000
  - 32 -




---



##### Table of Contents



Executive Compensation Principles  Compensation Committee
      Employment Contracts/Compensation Program
    - 33 -




---



##### Table of Contents



Stock Option Plans
        - 34 -




---



##### Table of Contents



- 35 -




---



##### Table of Contents



- 36 -




---



##### Table of Contents



Copyrights 2009 Dow Jones & Company. All rights reserved.
 11/04
    
    
    11/05
    
    
    11/06
    
    
    11/07
    
    
    11/08
    
    
    11/09CCA Industries, Inc.
    
    
    100.00
    
    
    
    76.38
    
    
    
    110.30
    
    
    
    94.93
    
    
    
    37.89
    
    
    
    47.81Dow Jones US
    
    
    100.00
    
    
    
    110.01
    
    
    
    125.86
    
    
    
    135.82
    
    
    
    83.35
    
    
    
    106.41Dow Jones US Personal Products
    
    
    100.00
    
    
    
    110.34
    
    
    
    132.32
    
    
    
    157.92
    
    
    
    121.95
    
    
    
    162.95
 
 Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
   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
c/o CCA Industries, Inc.
    
    
    146,609
    
    
    
    484,615
    
    
    
    
    
    
    
    8.9
    %200 Murray Hill Parkway
East Rutherford, NJ 07073Ira W. Berman
c/o CCA Industries, Inc.
    
    
    160,533
    
    
    
    483,087
    
    
    
    
    
    
    
    9.1
    %Stanley Kreitman
c/o CCA Industries, Inc.
    
    
    15,000
    
    
    
    
    
    
    
    
    
    
    
    0.2
    %Robert Lage
c/o CCA Industries, Inc.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.0
    %James P. Mastrian
c/o CCA Industries, Inc.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.0
    %Jack Polak
c/o CCA Industries, Inc.
    
    
    53,254
    
    
    
    
    
    
    
    
    
    
    
    0.8
    %
  - 37 -




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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)Dunnan Edell
c/o CCA Industries, Inc.
    
    
    97,158
    
    
    
    
    
    
    
    
    
    
    
    1.4
    %Drew Edell
c/o CCA Industries, Inc.
    
    
    98,108
    
    
    
    
    
    
    
    
    
    
    
    1.4
    %John Bingman
c/o CCA Industries, Inc.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.0
    %Stephen A. Heit
c/o CCA Industries, Inc.
    
    
    1,212
    
    
    
    
    
    
    
    
    
    
    
    0.0
    %All Officers and Directors
as a group (10 persons)
    
    
    571,874
    
    
    
    967,702
    
    
    
    
    
    
    
    21.8
    %
 
 (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. Lage, Mastrian, Kreitman
and Polak are independent, outside directors.   - 38 -




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##### Table of Contents



Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
   
 Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
  Audit Fees
  Audit Related Fees
  Tax Fees
  All Other Fees
   - 39 -




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Engagements Subject to Approval
   - 40 -




---



##### Table of Contents



PART IV
 
 Item 15. EXHIBITS, FINANCIAL STATEMENTS,
 SCHEDULES AND REPORTS ON FORM 8-K
      (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.
  - 41 -




---



##### Table of Contents



(1)
    
    Form 8-K, filed on October 2, 2009, announcing that the Company was served on
September 30, 2009 with a class action suit, Denise Wally vs. CCA Industries, Inc. The claim, which did not specify any damages, was filed in the Superior Court,
State of
California, County of Los Angeles, and Central Civil West, alleging false and misleading
claims about one of our products sold in California, that violated the California
Business and Professional Code.(2)
    
    Form 10-Q, filed on October 14, 2009, for the quarter ended August 31, 2009.
 (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
  - 42 -




---



##### Table of Contents



SIGNATURES
  CCA INDUSTRIES, INC.By:
    /s/   DUNNAN EDELLDUNNAN EDELL, President  Signature
    
    Title
    
    Date/s/ DAVID EDELL

DAVID EDELL
    
    Chief Executive Officer, Director
    
    February 25, 2010/s/ IRA BERMAN

IRA W. BERMAN
    
    Chairman of the Board
of Directors, 
Executive
Vice President, Secretary
    
    February 25, 2010/s/ DUNNAN EDELL

DUNNAN EDELL
    
    President, Chief Operating
Officer, Director
    
    February 25, 2010/s/ STEPHEN HEIT

STEPHEN HEIT
    
    Executive Vice President,
Chief Financial Officer
    
    February 25, 2010/s/ DREW EDELL

DREW EDELL
    
    Executive Vice President,
Research & Development
    
    February 25, 2010/s/ STANLEY KREITMAN

STANLEY KREITMAN
    
    Director
    
    February 25, 2010/s/ ROBERT LAGE

ROBERT LAGE
    
    Director
    
    February 25, 2010/s/ JACK POLAK

JACK POLAK
    
    Director
    
    February 25, 2010/s/ JAMES P. MASTRIAN

JAMES P. MASTRIAN
    
    Director
    
    February 25, 2010
  - 43 -




---



##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATED FINANCIAL STATEMENTS
 NOVEMBER 30, 2009 AND 2008
  - 44 -




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    
    46FINANCIAL STATEMENTS:CONSOLIDATED BALANCE SHEETS
    
    
    47-48CONSOLIDATED STATEMENTS OF INCOME
    
    
    49CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
    
    
    50CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
    
    
    51CONSOLIDATED STATEMENTS OF CASH FLOWS
    
    
    52NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    
    
    53-84SUPPLEMENTARY INFORMATIONSCHEDULE II  VALUATION ACCOUNTS
    
    
    85SIGNATURES
    
    
    43
  - 45 -




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
      
  - 46 -




---



##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
  NOVEMBER 30,2009
    
    
    2008Current AssetsCash and cash equivalents
    
    $
    7,844,369
    
    
    $
    5,568,699Short-term investments and marketable
securities (Notes 2 and 6)
    
    
    9,636,103
    
    
    
    10,014,357Accounts receivable, net of allowances of
$1,584,814 and $823,029, respectively
    
    
    7,613,273
    
    
    
    8,230,716Inventories, net of reserve for inventory
obsolescence of $760,001 and $578,941,
respectively (Notes 2 and 3)
    
    
    8,327,277
    
    
    
    7,932,798Prepaid expenses and sundry receivables
    
    
    739,139
    
    
    
    578,000Prepaid and refundable income taxes
(Note 8)
    
    
    89,535
    
    
    
    1,554,158Deferred income taxes (Note 8)
    
    
    1,193,745
    
    
    
    973,732Total Current Assets
    
    
    35,443,441
    
    
    
    34,852,460Property and equipment, net of accumulated
depreciation and amortization
(Notes 2 and 4)
    
    
    682,921
    
    
    
    611,226Intangible assets, net of accumulated
amortization (Notes 2 and 5)
    
    
    697,506
    
    
    
    727,716Other assetsMarketable securities (Notes 2 and 6)
    
    
    2,900,035
    
    
    
    2,945,740Deferred income taxes (Note 8)
    
    
    
    
    
    
    143,419Other
    
    
    65,300
    
    
    
    65,300Total Other Assets
    
    
    2,965,335
    
    
    
    3,154,459Total Assets
    
    $
    39,789,203
    
    
    $
    39,345,861
   - 47 -




---



##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
  NOVEMBER 30,2009
    
    
    2008Current LiabilitiesAccounts payable and accrued liabilities (Note 10)
    
    $
    8,775,676
    
    
    $
    10,182,510Capitalized lease obligations
    
    
    53,233
    
    
    
    57,697Income taxes payable (Note 8)
    
    
    147,153
    
    
    
    Dividends payable (Note 12)
    
    
    493,811
    
    
    
    775,989Total Current Liabilities
    
    
    9,469,873
    
    
    
    11,016,196Deferred income tax liability (Note 8)
    
    
    76,929
    
    
    
    Capitalized lease obligations  long term
    
    
    22,553
    
    
    
    75,786Total Liabilities
    
    
    9,569,355
    
    
    
    11,091,982Commitments 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
    
    
    28,094,783
    
    
    
    26,920,561Unrealized (losses) on marketable securities
(Note 2)
    
    
    (274,528
    )
    
    
    (1,066,275
    )Total Shareholders Equity
    
    
    30,219,848
    
    
    
    28,253,879Total Liabilities and Shareholders Equity
    
    $
    39,789,203
    
    
    $
    39,345,861
   - 48 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF INCOME
 Years Ended November 30,2009
    
    
    2008
    
    
    2007RevenuesSales of health and beauty
aid products, net
    
    $
    57,001,999
    
    
    $
    56,741,133
    
    
    $
    59,832,157Other income
    
    
    670,165
    
    
    
    716,813
    
    
    
    1,045,71057,672,164
    
    
    
    57,457,946
    
    
    
    60,877,867Costs and ExpensesCost of sales
    
    
    21,850,575
    
    
    
    21,769,142
    
    
    
    21,760,406Selling, general and
administrative expenses
    
    
    20,037,352
    
    
    
    22,122,849
    
    
    
    21,266,327Advertising, cooperative and
promotions
    
    
    9,667,446
    
    
    
    10,466,740
    
    
    
    6,956,407Research and development
    
    
    499,636
    
    
    
    603,486
    
    
    
    574,900(Benefit from) provision for
doubtful accounts
    
    
    (4,901
    )
    
    
    12,886
    
    
    
    (21,839
    )Interest expense
    
    
    11,932
    
    
    
    16,444
    
    
    
    29,09052,062,040
    
    
    
    54,991,547
    
    
    
    50,565,291Transaction Costs
    
    
    
    
    
    
    
    
    
    
    717,850Total Costs and Expenses
    
    
    52,062,040
    
    
    
    54,991,547
    
    
    
    51,283,141Income before Provision
for Income Taxes
    
    
    5,610,124
    
    
    
    2,466,399
    
    
    
    9,594,726Provision for income taxes
    
    
    2,178,480
    
    
    
    1,053,513
    
    
    
    4,056,931Net Income
    
    $
    3,431,644
    
    
    $
    1,412,886
    
    
    $
    5,537,795Weighted Average Shares OutstandingBasic
    
    
    7,054,442
    
    
    
    7,054,442
    
    
    
    7,029,611Diluted
    
    
    7,054,442
    
    
    
    7,061,646
    
    
    
    7,058,889Earnings Per Common Share (Note 2):Basic
    
    $
    0.49
    
    
    $
    0.20
    
    
    $
    0.79Diluted
    
    $
    0.49
    
    
    $
    0.20
    
    
    $
    0.78
   - 49 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 Years Ended November 30,2009
    
    
    2008
    
    
    2007Net Income
    
    $
    3,431,644
    
    
    $
    1,412,886
    
    
    $
    5,537,795Other Comprehensive Income (Loss)Unrealized holding gain (loss)
on investments, net of tax*
(Note 6, Note 8)
    
    
    791,747
    
    
    
    (875,914
    )
    
    
    (63,228
    )Comprehensive Income
    
    $
    4,223,391
    
    
    $
    536,972
    
    
    $
    5,474,567
 *
    
    Unrealized holding gain is net of a deferred tax benefit from unrealized losses of $39,900   - 50 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
 FOR THE YEARS ENDED NOVEMBER 30, 2009, 2008 AND 2007
 UNREALIZEDGAIN (LOSS)ADDITIONAL
    
    
    
    
    
    
    ON
    
    
    TOTALCOMMON STOCK
    
    
    PAID IN
    
    
    RETAINED
    
    
    MARKETABLE
    
    
    SHAREHOLDERSSHARES
    
    
    AMOUNT
    
    
    CAPITAL
    
    
    EARNINGS
    
    
    SECURITIES
    
    
    EQUITYBalance  December 1, 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
    )
    
    
    28,253,879Net Income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,431,644
    
    
    
    
    
    
    
    3,431,644Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,257,422
    )
    
    
    
    
    
    
    (2,257,422
    )Unrealized gain on marketable securities,
net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    791,747
    
    
    
    791,747Balance  November 30, 2009
    
    
    7,054,442
    
    
    $
    70,544
    
    
    $
    2,329,049
    
    
    $
    28,094,783
    
    
    $
    (274,528
    )
    
    $
    30,219,848
   - 51 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the years ended November 30,2009
    
    
    2008*
    
    
    2007Cash Flows from Operating Activities:Net income
    
    $
    3,431,644
    
    
    $
    1,412,886
    
    
    $
    5,537,795Adjustments to reconcile net
income to net cash provided by
operating activities:Depreciation and amortization
    
    
    252,998
    
    
    
    246,165
    
    
    
    257,555(Gain) on sale of securities
    
    
    (113,272
    )
    
    
    (88,096
    )
    
    
    (60,697
    )Loss on write off of fixed assets
    
    
    3,262
    
    
    
    
    
    
    
    Loss on sale or impairment
of intangible assets
    
    
    23,548
    
    
    
    1,332
    
    
    
    21,745Decrease (increase) in deferred
income taxes
    
    
    40,235
    
    
    
    (321,855
    )
    
    
    410,116Decrease (increase)in accounts receivable
    
    
    617,444
    
    
    
    888,463
    
    
    
    (1,930,982
    )(Increase) in inventory
    
    
    (394,479
    )
    
    
    (75,476
    )
    
    
    (1,507,309
    )(Increase) decrease in prepaid expenses
and sundry receivables
    
    
    (161,139
    )
    
    
    52,893
    
    
    
    53,982Decrease (increase) in prepaid and refundable
income taxes
    
    
    1,464,623
    
    
    
    (714,465
    )
    
    
    (839,693
    )(Increase) in other assets
    
    
    
    
    
    
    
    
    
    
    (17,800
    )(Decrease) increase in accounts payable and
accrued liabilities
    
    
    (1,406,835
    )
    
    
    1,828,052
    
    
    
    250,033Increase (decrease) in income taxes payable
    
    
    147,153
    
    
    
    
    
    
    
    (413,869
    )Net Cash Provided by Operating
Activities
    
    
    3,905,182
    
    
    
    3,229,899
    
    
    
    1,760,876Cash Flows from Investing Activities:Acquisition of property and equipment
    
    
    (321,293
    )
    
    
    (289,533
    )
    
    
    (260,453
    )Acquisition of intangible assets
    
    
    
    
    
    
    (250,000
    )
    
    
    (522
    )Purchase of available for sale securities
    
    
    (20,239,331
    )
    
    
    (25,382,587
    )
    
    
    (14,824,908
    )Proceeds from sale of available for
sales securities
    
    
    21,528,407
    
    
    
    24,440,000
    
    
    
    17,605,791Net Cash Provided by (Used in)
Investing Activities
    
    
    967,783
    
    
    
    (1,482,120
    )
    
    
    2,519,908Cash Flows from Financing Activities:Increase in capital lease obligation
    
    
    
    
    
    
    20,814
    
    
    
    80,036Payments for capital lease obligation
    
    
    (57,696
    )
    
    
    (51,532
    )
    
    
    (38,352
    )Dividends paid
    
    
    (2,539,599
    )
    
    
    (2,892,322
    )
    
    
    (1,965,111
    )Net Cash (Used in) Financing Activities
    
    
    (2,597,295
    )
    
    
    (2,923,040
    )
    
    
    (1,923,427
    )Net Increase (Decrease) In Cash and Cash Equivalents
    
    
    2,275,670
    
    
    
    (1,175,261
    )
    
    
    2,357,357Cash and Cash Equivalents at Beginning of Year
    
    
    5,568,699
    
    
    
    6,743,960
    
    
    
    4,385,340Cash and Cash Equivalents at End of Year
    
    $
    7,844,369
    
    
    $
    5,568,699
    
    
    $
    6,743,960Supplemental Disclosures of CashFlow InformationCash paid during the year for:Interest
    
    $
    11,932
    
    
    $
    16,444
    
    
    $
    29,090Income taxes
    
    
    667,945
    
    
    
    2,086,300
    
    
    
    4,882,361Supplemental Disclosure of Non-CashInformation:Dividends declared and accrued
    
    $
    493,811
    
    
    $
    775,989
    
    
    $
    634,900
 *
    
    Reclassified for comparative purposes.   - 52 -




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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:
   - 53 -




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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
  Cash and Cash Equivalents:
  Inventories:
   Property and Equipment and Depreciation and Amortization
   - 54 -




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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 (Continued)
 
  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:
   - 55 -




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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:
   - 56 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Shipping Costs:
  Research and Development Costs
  Stock Options:
  Reclassifications
  Recent Accounting Pronouncements
   - 57 -




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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)
      - 58 -




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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)
 
     - 59 -




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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)
      - 60 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INVENTORIES
  2009
    
    
    2008Raw materials
    
    $
    5,246,185
    
    
    $
    4,880,267Finished goods
    
    
    3,081,092
    
    
    
    3,052,531$
    8,327,277
    
    
    $
    7,932,798
  PROPERTY AND EQUIPMENT
  2009
    
    
    2008Machinery and equipment
    
    $
    217,323
    
    
    $
    190,308Office furniture and equipment
    
    
    953,208
    
    
    
    813,819Transportation equipment
    
    
    
    
    
    
    10,918Tools, dies, and masters
    
    
    335,716
    
    
    
    360,701Capitalized lease obligations
    
    
    263,067
    
    
    
    263,067Web Site
    
    
    20,000
    
    
    
    20,000Leasehold improvements
    
    
    402,785
    
    
    
    357,5822,192,099
    
    
    
    2,016,395Less: Accumulated depreciation
and amortization
    
    
    1,509,178
    
    
    
    1,405,169Property and Equipment  Net
    
    $
    682,921
    
    
    $
    611,226
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INTANGIBLE ASSETS
  2009
    
    
    2008Trademarks and patents
    
    $
    856,005
    
    
    $
    886,608Less: Accumulated amortization
    
    
    158,499
    
    
    
    158,892Intangible Assets  Net
    
    $
    697,506
    
    
    $
    727,716
  SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES
  November 30,
    
    
    November 30,2009
    
    
    2008COST
    
    
    MARKET
    
    
    COST
    
    
    MARKETCurrent:Guaranteed bankCertificates of deposit
    
    $
    942,000
    
    
    $
    944,910
    
    
    $
    3,366,000
    
    
    $
    3,366,000Corporate obligations
    
    
    598,370
    
    
    
    607,189
    
    
    
    200,000
    
    
    
    197,714Government obligations
(including mortgage
backed securities)
    
    
    7,494,318
    
    
    
    7,497,900
    
    
    
    6,200,029
    
    
    
    6,248,363Preferred stock
    
    
    250,000
    
    
    
    187,720
    
    
    
    50,000
    
    
    
    21,640Common Stock
    
    
    189,552
    
    
    
    196,873
    
    
    
    51,648
    
    
    
    44,628Mutual funds
    
    
    215,274
    
    
    
    165,383
    
    
    
    215,274
    
    
    
    114,582Other equity
    
    
    70,206
    
    
    
    36,128
    
    
    
    70,206
    
    
    
    21,430Total
    
    
    9,759,720
    
    
    
    9,636,103
    
    
    
    10,153,157
    
    
    
    10,014,357Non-Current:Guaranteed bankCertificates of deposit
    
    
    816,000
    
    
    
    818,250
    
    
    
    
    
    
    
    Corporate obligations
    
    
    200,000
    
    
    
    205,297
    
    
    
    598,370
    
    
    
    577,334Government obligations
    
    
    
    
    
    
    
    
    
    
    500,000
    
    
    
    460,000Preferred stock
    
    
    2,074,845
    
    
    
    1,876,488
    
    
    
    2,774,845
    
    
    
    1,908,406Total
    
    
    3,090,845
    
    
    
    2,900,035
    
    
    
    3,873,215
    
    
    
    2,945,740Total
    
    $
    12,850,565
    
    
    $
    12,536,138
    
    
    $
    14,026,372
    
    
    $
    12,960,097
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
 The market value at November 30, 2009 was $12,536,138 as compared to $12,960,097 at
November 30, 2008. The gross unrealized gains and (losses) were $35,640 and $(350,068)
for November 30, 2009 and $48,841 and $(1,115,116) for November 30, 2008. The cost and
market values of the investments at November 30, 2009 were as follows:
 COL. A
    
    
    
    
    
    
    
    
    
    COL. B


    
    
    COL. C
    
    
    COL. D
    

    

COL. EAmount atWhich EachNumber of
    
    
    
    
    
    
    
    
    
    
    Portfolio ofUnits-
    
    
    
    
    
    
    
    
    
    Equity SecurityPrincipal
    
    
    
    
    
    
    Market Value of
    
    
    Issue and EachAmount of
    
    
    
    
    
    Each Issue
    
    
    Other SecurityName of Issuer and
    
    Maturity
    
    
    Interest
    
    
    Bonds and
    
    
    Cost of
    
    
    at Balance
    
    
    Issue Carried inTitle of Each Issue
    
    Date
    
    
    Rate
    
    
    Notes
    
    
    Each Issue
    
    
    Sheet Date
    
    
    Balance SheetCERTIFICATES OF DEPOSITSAmerican Express Bank
    
    
    5/13/11
    
    
    
    2.050
    %
    
    
    96,000
    
    
    $
    96,000
    
    
    $
    96,758
    
    
    $
    96,758Bank of the Cascades
    
    
    12/21/09
    
    
    
    1.650
    
    
    
    200,000
    
    
    
    200,000
    
    
    
    200,132
    
    
    
    200,132Beal Bank TX
    
    
    02/17/10
    
    
    
    0.800
    
    
    
    96,000
    
    
    
    96,000
    
    
    
    96,042
    
    
    
    96,042Capmark Bank
    
    
    04/29/11
    
    
    
    2.350
    
    
    
    96,000
    
    
    
    96,000
    
    
    
    96,804
    
    
    
    96,804Citi Bank  UT
    
    
    04/29/11
    
    
    
    2.250
    
    
    
    96,000
    
    
    
    96,000
    
    
    
    96,670
    
    
    
    96,670Discover Bank  DE
    
    
    04/29/11
    
    
    
    2.300
    
    
    
    96,000
    
    
    
    96,000
    
    
    
    96,737
    
    
    
    96,737Doral Bank Catano
    
    
    04/22/10
    
    
    
    4.250
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    101,322
    
    
    
    101,322GE Capital
    
    
    02/16/10
    
    
    
    0.700
    
    
    
    96,000
    
    
    
    96,000
    
    
    
    96,020
    
    
    
    96,020GE Money Bank
    
    
    07/25/11
    
    
    
    1.750
    
    
    
    240,000
    
    
    
    240,000
    
    
    
    238,051
    
    
    
    238,051Keybank Natl Assoc
    
    
    04/29/11
    
    
    
    2.050
    
    
    
    96,000
    
    
    
    96,000
    
    
    
    96,401
    
    
    
    96,401Sallie Mae
    
    
    05/13/11
    
    
    
    2.350
    
    
    
    96,000
    
    
    
    96,000
    
    
    
    96,828
    
    
    
    96,828Signature Bank
    
    
    11/19/10
    
    
    
    2.180
    
    
    
    250,000
    
    
    
    250,000
    
    
    
    250,000
    
    
    
    250,000Southern B&T
    
    
    12/23/09
    
    
    
    1.600
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    100,070
    
    
    
    100,070Westernbank PR CTF
    
    
    04/22/10
    
    
    
    4.250
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    101,322
    
    
    
    101,3221,758,000
    
    
    
    1,763,157
    
    
    
    1,763,157
  - 63 -




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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 EachNumber of
    
    
    
    
    
    
    
    
    
    
    Portfolio ofUnits-
    
    
    
    
    
    
    
    
    
    
    Equity SecurityPrincipal
    
    
    
    
    
    
    Market Value
    
    
    Issue and EachAmount of
    
    
    
    
    
    
    of Each Issue
    
    
    Other SecurityName of Issuer and
    
    Maturity
    
    
    Interest
    
    
    Bonds and
    
    
    Cost of
    
    
    at Balance
    
    
    Issue Carried inTitle of Each Issue
    
    Date
    
    
    Rate
    
    
    Notes
    
    
    Each Issue
    
    
    Sheet Date
    
    
    Balance SheetCORPORATE OBLIGATIONS:Caterpillar Fin Service Corp
    
    
    05/15/11
    
    
    
    3.900
    %
    
    
    200,000
    
    
    
    200,000
    
    
    
    205,302
    
    
    
    205,302Merrill Lynch & Co
    
    
    08/04/10
    
    
    
    4.790
    
    
    
    200,000
    
    
    
    199,614
    
    
    
    204,552
    
    
    
    204,552Morgan Stanley
    
    
    01/15/10
    
    
    
    4.000
    
    
    
    200,000
    
    
    
    199,106
    
    
    
    200,658
    
    
    
    200,658Toyota Motor
    
    
    04/28/10
    
    
    
    2.850
    
    
    
    200,000
    
    
    
    199,650
    
    
    
    201,978
    
    
    
    201,978798,370
    
    
    
    812,490
    
    
    
    812,490GOVERNMENT OBLIGATIONS:NJ ST HGR ED
    
    
    12/01/40
    
    
    
    0.000
    
    
    
    500,000
    
    
    
    500,000
    
    
    
    500,000
    
    
    
    500,000US Treasury Bill
    
    
    12/17/09
    
    
    
    0.000
    
    
    
    1,000,000
    
    
    
    997,192
    
    
    
    999,970
    
    
    
    999,970US Treasury Bill
    
    
    02/11/10
    
    
    
    0.000
    
    
    
    3,000,000
    
    
    
    2,999,568
    
    
    
    2,999,820
    
    
    
    2,999,820US Treasury Bill
    
    
    05/13/10
    
    
    
    0.000
    
    
    
    3,000,000
    
    
    
    2,997,557
    
    
    
    2,998,110
    
    
    
    2,998,1107,494,317
    
    
    
    7,497,900
    
    
    
    7,497,900
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
 Amount atWhich EachNumber
    
    
    
    
    
    
    
    
    
    
    Portfolio ofof Units-
    
    
    
    
    
    
    
    
    
    
    Equity SecurityPrincipal
    
    
    
    
    
    
    Market Value
    
    
    Issue and EachAmount of
    
    
    
    
    
    
    of Each Issue
    
    
    Other SecurityName of Issuer and
    
    Maturity
    
    
    Interest
    
    
    Bonds and
    
    
    Cost of
    
    
    at Balance
    
    
    Issue Carried inTitle of Each Issue
    
    Date
    
    
    Rate
    
    
    Notes
    
    
    Each Issue
    
    
    Sheet Date
    
    
    Balance SheetPreferred Stock:Bank of America Ser H
    
    
    05/01/13
    
    
    
    8.200
    
    
    
    20,000
    
    
    
    500,000
    
    
    
    440,000
    
    
    
    440,000Bank of America
    
    
    05/28/13
    
    
    
    8.625
    
    
    
    20,000
    
    
    
    500,000
    
    
    
    452,200
    
    
    
    452,200Deutsche Bank Capital TR V
    
    
    06/30/18
    
    
    
    8.050
    
    
    
    20,000
    
    
    
    500,000
    
    
    
    491,800
    
    
    
    491,800General Electric Cap Corp
    
    
    11/15/32
    
    
    
    6.100
    
    
    
    8,800
    
    
    
    224,845
    
    
    
    211,728
    
    
    
    211,728JP Morgan Chase
    
    
    06/15/33
    
    
    
    5.875
    
    
    
    2,000
    
    
    
    50,000
    
    
    
    43,120
    
    
    
    43,120MetLife Floater
    
    
    06/15/10
    
    
    
    4.000
    
    
    
    8,000
    
    
    
    200,000
    
    
    
    167,200
    
    
    
    167,200Morgan Stanley Cap Tr
    
    
    07/15/33
    
    
    
    5.750
    
    
    
    4,000
    
    
    
    100,000
    
    
    
    75,800
    
    
    
    75,800RBS Capital Funding
    
    
    07/03/08
    
    
    
    5.900
    
    
    
    2,000
    
    
    
    50,000
    
    
    
    20,520
    
    
    
    20,520Wells Fargo Cap Tr VIII
    
    
    08/01/33
    
    
    
    5.625
    
    
    
    8,000
    
    
    
    200,000
    
    
    
    161,840
    
    
    
    161,8402,324,845
    
    
    
    2,064,208
    
    
    
    2,064,208
  - 65 -




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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 EquityNumber of
    
    
    
    
    
    
    
    
    SecurityUnits-Principal
    
    
    
    
    
    Market Value of
    
    
    Issue and EachAmount of
    
    
    
    
    
    Each Issue at
    
    
    Other SecurityName of Issuer and
    
    Maturity
    
    
    Interest
    
    
    Bonds and
    
    
    Cost of Each
    
    
    Balance
    
    
    Issue Carried inTitle of Each Issue
    
    Date
    
    
    Rate
    
    
    Notes
    
    
    Issue
    
    
    Sheet Date
    
    
    Balance SheetCommon Stock:Consolidate Edison Inc.
    
    
    
    
    
    
    
    
    
    
    2,000
    
    
    
    76,381
    
    
    
    85,820
    
    
    
    85,820DTE Energy Company
    
    
    
    
    
    
    
    
    
    
    1,200
    
    
    
    51,648
    
    
    
    48,132
    
    
    
    48,132Verizon Communications
    
    
    
    
    
    
    
    
    
    
    2,000
    
    
    
    61,523
    
    
    
    62,920
    
    
    
    62,920Mutual Funds:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    189,552
    
    
    
    196,872
    
    
    
    196,872Dreyfus Premier Ltd High Income
    
    
    
    
    
    
    
    
    
    
    16,296.314
    
    
    
    215,275
    
    
    
    165,383
    
    
    
    165,383Other Equity Investments:PIMCO Floating Rate Strategy
    
    
    
    
    
    
    
    
    
    
    2,900
    
    
    
    70,206
    
    
    
    36,128
    
    
    
    36,128Totals
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    12,850,565
    
    
    $
    12,536,138
    
    
    $
    12,536,138
  - 66 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
 During the years ended November 30, 2009, 2008 and 2007, available-for-sale
securities were liquidated and proceeds amounting to $21,528,407, $24,440,000 and
$17,605,791 were received, with resultant realized gains totaling $113,272, $88,096, and
$60,697, respectively. Cost of available-for-sale securities includes unamortized
premium or discount.
 The Company had, at November 30, 2009, an auction rate bond issued by the New Jersey
State Higher Education Assistance Authority (NJHE). The bond was recorded as a
non-current marketable security. The NJHE bond has an original par value of $500,000, a
maturity date of December 1, 2040, a rating of AA by S&P, and has been placed on
negative watch. Fitch Ratings had withdrawn their rating. The current interest rate is
0.578% as set on January 5, 2010. Beginning in February 2008, more shares for sale were
submitted in the regularly scheduled auctions for the NJHE auction rate bonds than there
were offers to buy. This meant that these auctions failed to clear and that many or
all auction bond holders who wanted to sell their shares in these auctions were unable
to do so. The Company was notified by Wells Fargo Securities, LLC on February 11, 2010
that they will be repurchasing the NJHE bond from the Company at the original par value
(See Note 16, Subsequent Events for further information). The Company had recognized a
temporary impairment charge of $40,000 against the $500,000 par value of the bond in
fiscal 2008. The Company recognized an additional impairment charge of $60,000 in the
second quarter of 2009, for a total impairment charge of $100,000. Due to the
notification by Wells Fargo Investments of its intent to repurchase the NJHE bond, the
Company believes that there is no impairment as of November 30, 2009 and accordingly has
reversed the impairment charges previously recognized.
 The Company adopted ASC Topic 820, Fair Value Measurements and Disclosures (previously
reported as SFAS No. 157, Fair Value Measurements) as of December 1, 2007, which expands
disclosures about investments that are measured and reported at fair market value. ASC
Topic 820 established a fair value hierarchy that prioritizes the inputs to valuation
techniques utilized to measure fair value into three broad levels as follows:
 Level 1  Quoted market prices in active markets for the identical asset or liability
that the reporting entity has ability to access at measurement date.
 Level 2  Quoted market prices for identical or similar assets or liabilities in markets
that are not active, and where fair value is determined through the use of models or
other valuation methodologies.
 Level 3  Unobserved inputs for the asset or liability. Fair value is determined by the
reporting entitys own assumptions utilizing the best information available, and
includes situations where there is little market activity for the investment.
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
 SignificantQuoted Market
    
    
    OtherPrice in Active
    
    
    ObservableNovember 30,
    
    
    Markets
    
    
    InputsDescription
    
    2009
    
    
    (Level 1)
    
    
    (Level 2)Bank Certificates of
Deposit
    
    $
    1,763,157
    
    
    $
    
    
    
    $
    1,763,157Corporate obligations
    
    
    812,490
    
    
    
    
    
    
    
    812,490Government Obligations
    
    
    7,497,900
    
    
    
    6,997,900
    
    
    
    500,000Preferred Stock
    
    
    2,064,208
    
    
    
    2,064,208
    
    
    
    Common Stock
    
    
    196,872
    
    
    
    196,872
    
    
    
    Mutual Funds
    
    
    165,383
    
    
    
    165,383
    
    
    
    Other Equity
    
    
    36,128
    
    
    
    
    
    
    
    36,128Total
    
    $
    12,536,138
    
    
    $
    9,424,363
    
    
    $
    3,111,775
 Quoted
    
    
    SignificantMarket Price
    
    
    Otherin Active
    
    
    ObservableNovember 30,
    
    
    Markets
    
    
    InputsDescription
    
    2008
    
    
    (Level 1)
    
    
    (Level 2)Bank Certificates of
Deposit
    
    $
    3,366,000
    
    
    $
    
    
    
    $
    3,366,000Corporate obligations
    
    
    1,023,666
    
    
    
    
    
    
    
    1,023,666Government Obligations
    
    
    6,459,745
    
    
    
    5,999,745
    
    
    
    460,000Preferred Stock
    
    
    1,930,046
    
    
    
    1,930,046
    
    
    
    Common Stock
    
    
    44,628
    
    
    
    44,628
    
    
    
    Mutual Funds
    
    
    114,582
    
    
    
    114,582
    
    
    
    Other Equity
    
    
    21,430
    
    
    
    
    
    
    
    21,430Total
    
    $
    12,960,097
    
    
    $
    8,089,001
    
    
    $
    4,871,096
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
 The following table discloses a reconciliation of the NJHE bond Level 2 investment
at measured fair value during the year ended November 30, 2009:
 Beginning Balance as of December 1, 2008
    
    $
    460,000Unrealized (loss) as of May 31, 2009
    
    
    (60,000
    )Ending Balance as of May 31, 2009
    
    
    400,000Unrealized gain as of November 30, 2009
    
    
    100,000Ending Balance as of November 30, 2009
    
    $
    500,000
 There was no realized income or loss from the Level 2 NJHE bond investment during the
fiscal year ended November 30, 2009.
 LINE OF CREDIT
 The Company had a $20,000,000 unsecured line of credit which expired on August 31, 2009.
The Company elected not to renew the line of credit. The unsecured line was subject to
certain financial covenants. The Company had never utilized the line of credit, and as
of August 31, 2009 and November 30, 2008, there was no outstanding balance.
 INCOME TAXES
 CCA and its subsidiaries file a consolidated federal income tax return.
 The Company previously adopted the provisions of ASC Subtopic 740-10-25, Uncertain Tax
Positions (previously reported as FIN No. 48, Accounting for Uncertainty in Income
Taxes  an interpretation of FASB Statement No. 109). Management believes that there
were no unrecognized tax benefits, or tax positions that would result in uncertainty
regarding the deductions taken, as of November 30, 2009 and November 30, 2008. ASC
Subtopic 740-10-25 prescribes a recognition threshold and a measurement attribute for
the financial statement recognition and measurement of tax positions taken or expected
to be taken in a tax return. For those benefits to be recognized, a tax position must be
more-likely-than-not to be sustained upon examination by taxing authorities. There were
no penalties or related interest for the fiscal year to date ended November 30, 2009 or
for the fiscal year ended November 30, 2008.
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INCOME TAXES (Continued)
 The United States Internal Revenue Service completed in 2009 an examination of the
Companys U.S. tax return for fiscal 2006. As a result of that examination, the Company
received a refund of $94,195 in federal taxes for the 2006 fiscal year. The audit
adjustments resulted in refunds from amended state tax returns in 2006 of $28,145, and
an additional $196,335 in refunds from federal and state amended returns for fiscal
2007. The refunds resulted in the decreased effective tax rate for fiscal 2009. The
State of New Jersey, Department of The Treasury, Division of Taxation is
currently examining state income and sales tax returns filed for the fiscal years 2004 -
2008. As of February 25, 2010, no adjustments have been proposed. No other state has
notified the Company of its intent to conduct an examination of tax returns filed in
their jurisdictions. The Company had $747,668 of officer salaries during fiscal 2009
that were not deductible for tax purposes in calculating the income tax provision. As
of November 30, 2009, the Company has unrealized losses on its investments of $314,428,
which would have a tax benefit of $125,457. This tax benefit has been reduced by a
valuation allowance of $85,557. The valuation allowance is based on an estimate of the
losses, which if realized, could not be utilized to offset any corresponding capital
gains. The tax benefit of the unrealized losses, if realized, net of valuation
allowances, is $39,900 as of November 30, 2009.
 At November 30, 2009 and 2008, respectively, the Company has temporary differences
arising from the following:
 November 30, 2009Classified AsDeferred
    
    
    Short-Term
    
    
    Long- TermType
    
    Amount
    
    
    Tax
    
    
    Asset
    
    
    (Liability)Depreciation
    
    $
    (192,804
    )
    
    $
    (76,929
    )
    
    $
    
    
    
    $
    (76,929
    )Unrealized loss on
investments
    
    
    314,428
    
    
    
    125,457
    
    
    
    125,457
    
    
    
    Reserve for bad debts
    
    
    131,223
    
    
    
    52,358
    
    
    
    52,358
    
    
    
    Reserve for returns
    
    
    1,453,591
    
    
    
    579,983
    
    
    
    579,983
    
    
    
    Reserve for obsolete
inventory
    
    
    760,001
    
    
    
    303,240
    
    
    
    303,240
    
    
    
    Vacation accrual
    
    
    276,161
    
    
    
    110,188
    
    
    
    110,188
    
    
    
    Charitable Contributions
    
    
    9,569
    
    
    
    3,818
    
    
    
    3,818
    
    
    
    Section 263A costs
    
    
    261,298
    
    
    
    104,258
    
    
    
    104,258
    
    
    
    Deferred income tax
    
    
    
    
    
    
    1,202,373
    
    
    
    1,279,302
    
    
    $
    (76,929
    )Valuation allowance
    
    
    
    
    
    
    (85,557)
    
    
    
    (85,557
    )
    
    
    Net deferred income tax
    
    
    
    
    
    $
    1,116,816
    
    
    $
    1,193,745
    
    
    $
    (76,929
    )
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INCOME TAXES (Continued)
 November 30, 2008Deferred
    
    
    Classified AsType
    
    Amount
    
    
    Tax
    
    
    Short-Term
    
    
    Long-TermAsset (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
    
    
    
    97,750
    
    
    
    97,750
    
    
    
    Net deferred income tax
    
    
    
    
    
    $
    1,117,151
    
    
    $
    973,732
    
    
    $
    143,419
 Income tax expense (benefit) is made up of the following components:
 November 30, 2009Federal
    
    
    State & Local
    
    
    TotalCurrent tax expense
    
    $
    1,613,144
    
    
    $
    525,101
    
    
    $
    2,138,245Deferred tax expense
    
    
    30,981
    
    
    
    9,254
    
    
    
    40,235$
    1,644,125
    
    
    $
    534,355
    
    
    $
    2,178,480
 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
 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
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INCOME TAXES (Continued)
 Prepaid and refundable income taxes are made up of the following components:
 Federal
    
    
    State & Local
    
    
    TotalNovember 30, 2009
    
    $
    
    
    
    $
    89,535
    
    
    $
    89,535November 30, 2008
    
    $
    1,020,948
    
    
    $
    533,210
    
    
    $
    1,554,158
  Federal
    
    
    State & Local
    
    
    TotalNovember 30, 2009
    
    $
    61,303
    
    
    $
    85,850
    
    
    $
    147,153
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 INCOME TAXES (Continued)
  2009
    
    
    2008
    
    
    2007Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    PercentOf Pretax
    
    
    
    
    
    
    Of Pretax
    
    
    
    
    
    
    Of PretaxAmount
    
    
    Income
    
    
    Amount
    
    
    Income
    
    
    Amount
    
    
    IncomeIncome tax expense
at federal statutory rate
    
    $
    1,907,442
    
    
    
    34.00
    %
    
    $
    838,576
    
    
    
    34.00
    %
    
    $
    3,262,207
    
    
    
    34.00
    %Increases (decreases) in taxes
resulting from:State income taxes, net of federal
income tax benefit
    
    
    320,899
    
    
    
    5.72
    
    
    
    141,078
    
    
    
    5.72
    
    
    
    548,512
    
    
    
    5.72Non-deductible expenses and
other adjustments
    
    
    (49,861
    )
    
    
    (0.89
    )
    
    
    73,859
    
    
    
    2.99
    
    
    
    246,212
    
    
    
    2.56Income tax expense
at effective rate
    
    $
    2,178,480
    
    
    
    38.83
    %
    
    $
    1,053,513
    
    
    
    42.71
    %
    
    $
    4,056,931
    
    
    
    42.28
    %
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 STOCK-BASED COMPENSATION
 On January 1, 2006, the Company adopted ASC Topic 718, Stock Compensation which
requires an entity to recognize the grant-date fair value of stock options and other
equity-based compensation issued to employees in the financial statements. Accordingly,
the Company applied the provisions of ASC Topic 718 to all awards granted subsequent to
December 31, 2005 and will apply the provisions to the extent that these awards are
subsequently modified, repurchased or cancelled. ASC Topic 718 requires that the Company
provide pro forma information regarding net earnings as if compensation cost for the
Companys stock-based awards had been determined in accordance with the fair value
prescribed therein.
 On September 27, 2007, the Company granted stock appreciation rights for 10,000 shares
to its Executive Vice President of Sales, at $9.40 per share, which was the price of the
stock on the day of the grant. The stock appreciation rights granted do not vest until
two years after the grant date and expire five years after the grant date. Upon
exercise, the option value would be paid through the issuance of Company stock. The
Company had no charge against earnings in fiscal 2008 or 2009, and anticipates no
charges in fiscal 2010 based on the current market value of the stock. The amounts for
future years can change, as the valuation of the fair value, as required by ASC Topic
718, involves factors such as the Companys dividend yield, interest rates, and share
price volatility, all of which are subject to change. The Company has made its estimate
of fiscal 2010 year charges against earnings based on those factors as of November 30,
2009.
 The following summarizes stock option activity for the two years ended November 30, 2009
and 2008:
 Weighted AverageNumber of
    
    
    exercise price of
    
    
    Weighted Average
    
    
    IntrinsicShares
    
    
    Outstanding Options
    
    
    Remaining Life
    
    
    ValueOutstanding December 1, 2007
    
    
    126,000
    
    
    $
    8.00
    
    
    
    1.35
    
    
    
    Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding November 30, 2008
    
    
    126,000
    
    
    
    8.00
    
    
    
    1.35Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    126,000
    
    
    
    8.00
    
    
    
    
    
    
    
    Outstanding November 30, 2009
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE
 The following items which exceeded 5% of total current liabilities are included in
accounts payable and accrued liabilities as of:
 November 30, (In Thousands)2009
    
    
    2008Coop advertising
    
    $
    1,218
    
    
    $
    849Accrued returns
    
    
    1,207
    
    
    
    1,443Accrued bonuses
    
    
    482
    
    
    
    
    *Media
    
    
    548
    
    
    
    1,326$
    3,455
    
    
    $
    3,618
 *
    
    Did not exceed 5% of total current liabilities at November 30, 2008.  - 75 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 OTHER INCOME
  November 30,2009
    
    
    2008
    
    
    2007Interest income
    
    $
    211,644
    
    
    $
    340,795
    
    
    $
    755,569Dividend income
    
    
    158,973
    
    
    
    94,775
    
    
    
    33,697Realized gain on sale ofSecurities
    
    
    113,272
    
    
    
    88,096
    
    
    
    60,697Royalty income
    
    
    151,768
    
    
    
    169,482
    
    
    
    125,158Miscellaneous
    
    
    34,508
    
    
    
    23,665
    
    
    
    70,589$
    670,165
    
    
    $
    716,813
    
    
    $
    1,045,710
 COMMITMENTS AND CONTINGENCIES
 Leases
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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Leases (Continued)
   Year EndingNovember 30,2010
    
    
    694,1202011
    
    
    694,1202012
    
    
    374,0602013
    
    
    2014
    
    
    
 Royalty Agreements
     - 77 -




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##### Table of Contents



CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 COMMITMENTS AND CONTINGENCIES (Continued)
 Royalty Agreements (Continued)
       - 78 -




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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 COMMITMENTS AND CONTINGENCIES (Continued)
 Royalty Agreements (Continued)
   SummaryLicensor
    
    2009
    
    
    2008
    
    
    2007A
    
    $
    38,607
    
    
    $
    56,051
    
    
    $
    39,290B
    
    
    96,769
    
    
    
    82,541
    
    
    
    91,662C
    
    
    37,392
    
    
    
    17,695
    
    
    
    18,020D
    
    
    
    
    
    
    
    
    
    
    5,692E
    
    
    
    
    
    
    2
    
    
    
    511F
    
    
    
    
    
    
    
    
    
    
    3,570H
    
    
    36,586
    
    
    
    44,866
    
    
    
    196,683I
    
    
    7,280
    
    
    
    37,071
    
    
    
    33,283K
    
    
    80,832
    
    
    
    240,215
    
    
    
    195,839L
    
    
    223
    
    
    
    4,815
    
    
    
    50,216M
    
    
    (572
    )
    
    
    5,876
    
    
    
    N
    
    
    12,301
    
    
    
    508
    
    
    
    O
    
    
    461
    
    
    
    
    
    
    
    P
    
    
    21,026
    
    
    
    
    
    
    
    
 Employment Contracts
   - 79 -




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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
  CONCENTRATION OF RISK
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 CONCENTRATION OF RISK (Continued)
  For the Year Ended November 30,Customer
    
    2009
    
    
    2008
    
    
    2007Walmart
    
    
    36
    %
    
    
    44
    %
    
    
    40
    %Walgreen
    
    
    14
    %
    
    
    10
    %
    
    
    8
    %Rite Aid
    
    
    6
    %
    
    
    5
    %
    
    
    8
    %CVS
    
    
    7
    %
    
    
    7
    %
    
    
    6
    %McLanes
    
    
    *
    
    
    
    *
    
    
    
    5
    %Foreign Sales
    
    
    5.6
    %
    
    
    4
    %
    
    
    3
    %
 *
    
    under 5%   For the Year Ended November 30,Category
    
    2009
    
    
    2008
    
    
    2007Dietary Supplement
    
    
    42
    %
    
    
    33
    %
    
    
    31
    %Skin Care
    
    
    28
    %
    
    
    29
    %
    
    
    29
    %Oral Care
    
    
    16
    %
    
    
    25
    %
    
    
    25
    %Nail Care
    
    
    10
    %
    
    
    10
    %
    
    
    11
    %
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 TRANSACTION EXPENSES
  SUBSEQUENT EVENTS
      - 83 -




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EARNINGS PER SHARE
  Year Ended November 30,2009
    
    
    2008
    
    
    2007Net income available for common
shareholders
    
    $
    3,431,644
    
    
    $
    1,412,886
    
    
    $
    5,537,795Weighted average common shares
outstanding- Basic
    
    
    7,054,442
    
    
    
    7,054,442
    
    
    
    7,029,611Net effect of dilutive stock options
    
    
    
    
    
    
    7,204
    
    
    
    29,278Weighted average common shares and
common shares equivalents  Diluted
    
    
    7,054,442
    
    
    
    7,061,646
    
    
    
    7,058,889Basic earnings per share
    
    $
    0.49
    
    
    $
    0.20
    
    
    $
    0.79Diluted earnings per share
    
    $
    0.49
    
    
    $
    0.20
    
    
    $
    0.78
  - 84 -




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##### Table of Contents



SCHEDULE II
 CCA INDUSTRIES, INC. AND SUBSIDIARIES
 VALUATION ACCOUNTS
  COL. A
    
    COL. B
    
    
    COL. C
    
    
    COL. D
    
    
    COL. EAdditionsBalance at
    
    
    Charged To
    
    
    
    
    
    
    BalanceBeginning
    
    
    Costs and
    
    
    
    
    
    
    At EndOf Year
    
    
    Expenses
    
    
    Deductions
    
    
    Of YearDescriptionYear Ended November 30, 2009:Allowance for doubtful accounts
    
    $
    154,291
    
    
    $
    (23,068
    )
    
    $
    
    
    
    $
    131,223Reserve for returns and allowances
    
    
    668,738
    
    
    
    3,518,949
    
    
    
    2,734,096
    
    
    
    1,453,591$
    823,029
    
    
    $
    3,495,881
    
    
    $
    2,734,096
    
    
    $
    1,584,814Reserve of inventory obsolescence
    
    $
    578,941
    
    
    $
    538,653
    
    
    $
    357,593
    
    
    $
    760,001Year Ended November 30, 2008:Allowance for doubtful accounts
    
    $
    141,607
    
    
    $
    12,684
    
    
    $
    
    
    
    $
    154,291Reserve for returns and allowances
    
    
    732,696
    
    
    
    2,118,592
    
    
    
    2,182,550
    
    
    
    668,738$
    874,303
    
    
    $
    2,131,276
    
    
    $
    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
    
    
    $
    604,746
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