Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Nov. 30, 2016 | Feb. 09, 2017 | Jun. 01, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | MICROPAC INDUSTRIES INC | ||
Entity Trading Symbol | mpac | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 30, 2016 | ||
Amendment Flag | false | ||
Entity Central Index Key | 65,759 | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Common Stock, Shares Outstanding | 2,578,315 | ||
Entity Public Float | $ 5,027,000 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2016 | Nov. 30, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 10,012 | $ 12,651 |
Short-term investments | 2,014 | 2,004 |
Receivables, net of allowance for doubtful accounts of $0 at November 30, 2016 and 2015 | 2,177 | 2,360 |
Inventories: | ||
Raw materials and supplies | 4,179 | 4,255 |
Work-in process | 3,438 | 2,613 |
Total inventories | 7,617 | 6,868 |
Deferred income taxes. | 690 | 693 |
Prepaid income tax | 521 | 0 |
Prepaid expenses and other assets | 152 | 161 |
Total current assets | 23,183 | 24,737 |
PROPERTY, PLANT AND EQUIPMENT, at cost: | ||
Land | 80 | 80 |
Buildings | 498 | 498 |
Facility improvements | 1,109 | 1,109 |
Furniture and fixtures | 669 | 719 |
Construction in process equipment | 401 | 347 |
Machinery and equipment | 8,565 | 8,432 |
Total property, plant, and equipment | 11,322 | 11,185 |
Less accumulated depreciation | (9,136) | (8,929) |
Net property, plant, and equipment | 2,186 | 2,256 |
Total assets | 25,369 | 26,993 |
CURRENT LIABILITIES: | ||
Accounts payable | 612 | 404 |
Accrued compensation | 454 | 666 |
Deferred revenue | 1,282 | 2,855 |
Property taxes | 94 | 90 |
Income tax payable | 0 | 109 |
Other accrued liabilities | 98 | 74 |
Total current liabilities | 2,540 | 4,198 |
DEFERRED INCOME TAXES | 417 | 360 |
SHAREHOLDERS' EQUITY | ||
Common stock, ($0.10 par value), authorized 10,000,000 shares, 3,078,315 issued and 2,578,315 outstanding at November 30, 2016 and November 30, 2015 | 308 | 308 |
Additional paid-in capital | 885 | 885 |
Treasury stock, 500,000 shares, at cost | (1,250) | (1,250) |
Retained earnings | 22,469 | 22,492 |
Total shareholders' equity | 22,412 | 22,435 |
Total liabilities and shareholders' equity | $ 25,369 | $ 26,993 |
BALANCE SHEETS PARENTHETICALS
BALANCE SHEETS PARENTHETICALS - USD ($) $ in Thousands | Nov. 30, 2016 | Nov. 30, 2015 |
Parentheticals | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Common Stock, par value | $ 0.10 | $ 0.10 |
Common Stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 3,078,315 | 3,078,315 |
Common Stock, shares outstanding | 2,578,315 | 2,578,315 |
Treasury stock, shares | 500,000 | 500,000 |
STATEMENTS OF INCOME
STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Revenue | ||
NET SALES | $ 17,599 | $ 20,032 |
COST AND EXPENSES: | ||
Cost of goods sold | (12,026) | (12,166) |
Research and development | (1,152) | (1,707) |
Selling, general & administrative expenses | (4,132) | (4,026) |
Total cost and expenses | (17,310) | (17,899) |
OPERATING INCOME | 289 | 2,133 |
Other income | 58 | 60 |
Interest income (expense), net | (2) | (9) |
INCOME BEFORE INCOME TAXES | 345 | 2,184 |
PROVISION FOR INCOME TAXES | ||
Current | (50) | (781) |
Deferred | (60) | 91 |
Total provision for income taxes | (110) | (690) |
NET INCOME | $ 235 | $ 1,494 |
NET INCOME PER SHARE, BASIC AND DILUTED | $ 0.09 | $ 0.58 |
WEIGHTED AVERAGE OF SHARES, basic and diluted | 2,578,315 | 2,578,315 |
DIVIDENDS PER SHARE | $ 0.10 | $ 0.10 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional paid-in Capital | Treasury Stock | Retained Earnings | Total |
BALANCE at Nov. 30, 2014 | 308 | 885 | (1,250) | 21,256 | 21,199 |
Dividend | $ (258) | $ (258) | |||
Net income | $ 1,494 | $ 1,494 | |||
BALANCE, at Nov. 30, 2015 | 308 | 885 | (1,250) | 22,492 | 22,435 |
Dividend | $ (258) | $ (258) | |||
Net income | $ 235 | $ 235 | |||
BALANCE at Nov. 30, 2016 | 308 | 885 | (1,250) | 22,469 | 22,412 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 235 | $ 1,494 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation | 290 | 308 |
Deferred tax expense (benefit) | 60 | (91) |
Loss (gain) on sale of equipment | 1 | (9) |
Changes in certain current assets and liabilities: | ||
(Increase) decrease in accounts receivable | 183 | (28) |
(Increase) decrease in inventories | (749) | (1,388) |
Decrease (increase) in prepaid expenses and other assets | 9 | 54 |
Decrease (increase) decrease in prepaid income taxes | (521) | 210 |
Increase (decrease) increase in deferred revenue | (1,573) | 2,754 |
Increase (decrease) in accounts payable | 224 | (156) |
(Decrease) increase in accrued compensation | (212) | 68 |
Increase (decrease) increase in income taxes payable | (109) | 109 |
Increase (decrease) in all other accrued liabilities | 29 | 3 |
Net cash (used in) provided by operating activities | (2,133) | 3,328 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturity of short term investments | 4,014 | 4,011 |
Purchase of short term investments | (4,024) | (4,006) |
Proceeds from sale of equipment | 0 | 9 |
Additions to property, plant and equipment | (238) | (427) |
Net cash used in investing activities | (248) | (413) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash dividend | (258) | (258) |
Net cash used in financing activities | (258) | (258) |
Net (decrease) increase in cash and cash equivalents | (2,639) | 2,657 |
Cash and cash equivalents at beginning of period | 12,651 | 9,994 |
Cash and cash equivalents at end of period | 10,012 | 12,651 |
Supplemental Cash Flow Disclosure: | ||
Cash paid for income taxes | 679 | 462 |
Supplemental Non-Cash Investing Activity: | ||
Accrued additions to equipment | $ (16) | $ (15) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Nov. 30, 2016 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BUSINESS DESCRIPTION: Micropac Industries, Inc. (the Company), a Delaware corporation, manufactures and distributes various types of hybrid microelectronic circuits, solid state relays, power controllers, and optoelectronic components and assemblies. The Company's products are used as components in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200 o |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Nov. 30, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition Revenues are recorded as shipments are made based upon contract prices. Any losses anticipated on fixed price contracts are provided for currently. Sales are recorded net of sales returns, allowances and discounts. Deferred Revenue represents prepayments from customers and will be recognized as revenue when the products are shipped per the terms of the contract. On May 28, 2015, the FASB issued ASU No. 2015-09, Revenue from Contracts with Customers Short-Term Investments The Company has $2,014,000 in short-term investments at November 30, 2016. Short-term investments consist of certificates of deposits with maturities greater than 90 days. These investments are reported at historical cost, which approximates fair value. All highly liquid investments with maturities of 90 days or less are classified as cash equivalents. All short-term investments are securities which the Company has the ability and intent to hold to maturity and mature within one year. Inventories Inventories are stated at lower of cost or market value and include material, labor and manufacturing overhead. All inventories are valued using the FIFO (first-in, first-out) method of inventory valuation. The Company determines the need to write inventory down below its cost via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method the Company records deferred income taxes for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The resulting deferred tax liabilities and assets are adjusted to reflect changes in tax law or rates in the period that includes the enactment date. The Company records a liability for an unrecognized tax benefit for a tax position that is not "more-likely-than-not" to be sustained. The Company did not record any liability for uncertain tax positions as of November 30, 2016 and 2015. Property, Plant, and Equipment Property, plant, and equipment are carried at cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in years) of the assets: Buildings 15 Facility improvements 8-15 Machinery and equipment 5-10 Furniture and fixtures 5-8 The Company assesses long-lived assets for impairment in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ASC 360-10-35, Property, Plant and Equipment Subsequent Measurement Repairs and maintenance are expensed as incurred. Improvements which extend the useful lives of property, plant, and equipment are capitalized. Research and Development Costs Costs for the design and development of new products are expensed as incurred. Basic and Diluted Earnings Per Share Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common shares. During 2016 and 2015, the Company had no dilutive potential common stock. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Nov. 30, 2016 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 3. FAIR VALUE MEASUREMENT: The Company had no financial assets and liabilities measured at fair value on a recurring basis as of November 30, 2016 and 2015. The fair value of financial instruments such as cash and cash equivalents, short-term investments, accounts receivable, and accounts payable approximate their carrying amount based on the short maturity of these instruments. There were no nonfinancial assets measured at fair value on a nonrecurring basis at November 30, 2016 and 2015. |
NOTES PAYABLE TO BANKS
NOTES PAYABLE TO BANKS | 12 Months Ended |
Nov. 30, 2016 | |
NOTES PAYABLE TO BANKS | |
NOTES PAYABLE TO BANKS | 4. NOTES PAYABLE TO BANKS: On April 23, 2016, the Company renewed the Loan Agreement with a Texas banking institution. The Loan Agreement provides for revolving credit loans, in amounts not to exceed a total principal balance of $6,000,000, and specific advance loans for acquisitions with an aggregate amount not to exceed $7,500,000 in a single advance or in multiple advances. The revolving credit loan renews ever two years and the loan for acquisitions renews ever year. The Loan Agreement also contains financial covenants to maintain at all times including (i) minimum working capital of not less than $4,000,000, (ii) a ratio of senior funded debt, minus the Company's balance sheet cash on hand to the extent in excess of $2,000,000 to EBITDA of not more than 3.0 to 1.0, and (iii) a ratio of free cash flow to debt service of not less than 1.2 to 1.0. The Company has not, to date, drawn any amounts under the loan agreement or the revolving line of credit and is currently in compliance with the financial covenants. |
PRODUCT WARRANTIES
PRODUCT WARRANTIES | 12 Months Ended |
Nov. 30, 2016 | |
PRODUCT WARRANTIES | |
PRODUCT WARRANTIES | 5. PRODUCT WARRANTIES: In general, the Company warrants that its products, when delivered, will be free from defects in material workmanship under normal use and service. The obligations are limited to replacing, repairing or giving credit for, at the option of the Company, any products that are returned within one year after the date of shipment. The Company does not provide extended warranties. The Company reserves for potential warranty costs based on historical warranty claims experience. While management considers the process to be adequate to effectively quantify its exposure to warranty claims based on historical performance, changes in warranty claims on a specific or cumulative basis may require management to adjust its reserve for potential warranty costs. Warranty expense was approximately $100,000 and $51,000 in 2016 and 2015, respectively. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Nov. 30, 2016 | |
LEASE COMMITMENTS | |
LEASE COMMITMENTS | 6. LEASE COMMITMENTS: Rent expense for each of the years ended November 30, 2016 and 2015 was $50,000 and $49,000 respectively. The Company has no future minimum lease payments under non-cancellable operating leases for office and manufacturing space with remaining terms in excess of one year. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Nov. 30, 2016 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 7. EMPLOYEE BENEFITS: The Company sponsors an Employees' Profit Sharing Plan and Trust (the Plan). Pursuant to section 401(k) of the Internal Revenue Code, the Plan is available to substantially all employees of the Company. Employee contributions to the Plan are matched by the Company at amounts up to 6% of the participant's salary. Contributions made by the Company were expensed and totaled approximately $325,000 in 2016 and $306,000 in 2015. Employees become vested in Company contributions in 20% increments in years two through six of employment. If the employee leaves the Company prior to being fully vested, the unvested portion of the Company contributions are forfeited and such forfeitures are used to lower future Company contributions. The Company does not offer other post-retirement benefits to its employees at this time. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Nov. 30, 2016 | |
INCOME TAXES | |
INCOME TAXES | 8. INCOME TAXES The income tax provision consisted of the following for the years ended November 30: 2016 2015 Current Provision: Federal $ 22,000 $ 750,000 State 28,000 31,000 50,000 781,000 Deferred federal tax expense (benefit) 60,000 (91,000 ) Total $ 110,000 $ 690,000 The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: 2016 2015 Tax at 34% statutory rate $ 117,000 $ 743,000 State income taxes, net of federal benefit 18,000 21,000 Section 199 Adjustment (17,000 ) (85,000 ) Permanent differences and other (8,000 ) 11,000 Income tax provision $ 110,000 $ 690,000 The components of deferred tax assets and liabilities were as follows: 2016 2015 Current Deferred Taxes Inventory $ 586,000 $ 605,000 Deferred revenue, sales returns and warranty 26,000 17,000 Other accrued liabilities 78,000 71,000 Current deferred tax asset 690,000 693,000 Non-current Deferred Taxes Depreciation (417,000 ) (360,000 ) Net deferred taxes $ 273,000 $ 333,000 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax-planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. |
SIGNIFICANT CUSTOMER INFORMATIO
SIGNIFICANT CUSTOMER INFORMATION | 12 Months Ended |
Nov. 30, 2016 | |
SIGNIFICANT CUSTOMER INFORMATION | |
SIGNIFICANT CUSTOMER INFORMATION | 9. SIGNIFICANT CUSTOMER INFORMATION: The Company's major customers include contractors to the United States government. Sales to these customers for the Department of Defense (DOD) and NASA contracts accounted for approximately 56% of the Company's revenues in 2016 compared to 57% in 2015. Two customers accounted for 18% and 11% of the Company's sales during 2016 and one customer accounted for 12% of the Company's sales in 2015. The Company's top 10 customers accounted for 48% of the Company's sales during 2016 and 41% of the Company's sales during 2015. Three customers accounted for 13%, 12% and 10% of the accounts receivable balance as of November 30, 2016. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Nov. 30, 2016 | |
SHAREHOLDERS' EQUITY: | |
SHAREHOLDERS' EQUITY | 10. SHAREHOLDERS' EQUITY: On December 16, 2014, the Board of Directors of Micropac Industries, Inc. approved the payment of a special dividend of $0.10 per share for shareholders of record as of January 12, 2015. The dividend was paid to shareholders on February 10, 2015. On December 15, 2015, the Board of Directors of Micropac Industries, Inc. approved the payment of a special dividend of $0.10 per share for shareholders of record as of January 12, 2016. The dividend was paid to the Company's shareholders on February 11, 2016. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Nov. 30, 2016 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS: On December 13, 2016, the Board of Directors of Micropac Industries, Inc. approved the payment of a $0.10 per share special dividend to all shareholders of record as of January 10, 2017. The dividend was paid to shareholders on February 9, 2017. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2016 | |
Accounting policies | |
Revenue Recognition | Revenue Recognition Revenues are recorded as shipments are made based upon contract prices. Any losses anticipated on fixed price contracts are provided for currently. Sales are recorded net of sales returns, allowances and discounts. Deferred Revenue represents prepayments from customers and will be recognized as revenue when the products are shipped per the terms of the contract. On May 28, 2015, the FASB issued ASU No. 2015-09, Revenue from Contracts with Customers |
Short-Term Investments | Short-Term Investments The Company has $2,014,000 in short-term investments at November 30, 2016. Short-term investments consist of certificates of deposits with maturities greater than 90 days. These investments are reported at historical cost, which approximates fair value. All highly liquid investments with maturities of 90 days or less are classified as cash equivalents. All short-term investments are securities which the Company has the ability and intent to hold to maturity and mature within one year. |
Inventories | Inventories Inventories are stated at lower of cost or market value and include material, labor and manufacturing overhead. All inventories are valued using the FIFO (first-in, first-out) method of inventory valuation. The Company determines the need to write inventory down below its cost via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method the Company records deferred income taxes for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The resulting deferred tax liabilities and assets are adjusted to reflect changes in tax law or rates in the period that includes the enactment date. The Company records a liability for an unrecognized tax benefit for a tax position that is not "more-likely-than-not" to be sustained. The Company did not record any liability for uncertain tax positions as of November 30, 2016 and 2015. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are carried at cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in years) of the assets: Buildings 15 Facility improvements 8-15 Machinery and equipment 5-10 Furniture and fixtures 5-8 The Company assesses long-lived assets for impairment in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ASC 360-10-35, Property, Plant and Equipment Subsequent Measurement Repairs and maintenance are expensed as incurred. Improvements which extend the useful lives of property, plant, and equipment are capitalized. |
Research and Development Costs | Research and Development Costs Costs for the design and development of new products are expensed as incurred. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common shares. During 2016 and 2015, the Company had no dilutive potential common stock. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Nov. 30, 2016 | |
Property, Plant, and Equipment {1} | |
Property, Plant and Equipment | Property, plant, and equipment are carried at cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in years) of the assets: Buildings 15 Facility improvements 8-15 Machinery and equipment 5-10 Furniture and fixtures 5-8 |
Schedule of Provision for Incom
Schedule of Provision for Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2016 | |
Schedule of Provision for Income Taxes | |
Summary of Tax Credit Carryforwards | The income tax provision consisted of the following for the years ended November 30: 2016 2015 Current Provision: Federal $ 22,000 $ 750,000 State 28,000 31,000 50,000 781,000 Deferred federal tax expense (benefit) 60,000 (91,000 ) Total $ 110,000 $ 690,000 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: 2016 2015 Tax at 34% statutory rate $ 117,000 $ 743,000 State income taxes, net of federal benefit 18,000 21,000 Section 199 Adjustment (17,000 ) (85,000 ) Permanent differences and other (8,000 ) 11,000 Income tax provision $ 110,000 $ 690,000 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows: 2016 2015 Current Deferred Taxes Inventory $ 586,000 $ 605,000 Deferred revenue, sales returns and warranty 26,000 17,000 Other accrued liabilities 78,000 71,000 Current deferred tax asset 690,000 693,000 Non-current Deferred Taxes Depreciation (417,000 ) (360,000 ) Net deferred taxes $ 273,000 $ 333,000 |
Short term investments (Details
Short term investments (Details) | Nov. 30, 2016USD ($) |
Short term investments Details | |
Short term investments maturity date more than 90 days | $ 2,014,000 |
Property Estimated Life (Detail
Property Estimated Life (Details) | 12 Months Ended |
Nov. 30, 2016 | |
Property Estimated Life | |
BuildingsAverageLife | 15 |
FacilityImprovementsUsefulLifeMinimum | 8 |
FacilityImprovementsUsefulLifeMaximum | 15 |
PropertyPlantAndEquipmentUsefulLifeMinimum | 5 |
PropertyPlantAndEquipmentUsefulLifeMaximum | 10 |
FurnitureAndFixuresUsefulLifeMinimum | 5 |
FurnitureAndFixuresUsefulLifeMaximum | 8 |
NOTES PAYABLE TO BANKS (Details
NOTES PAYABLE TO BANKS (Details) | Apr. 23, 2016USD ($) |
Loan Agreement details | |
Loan Agreement provides for revolving credit loans, | $ 6,000,000 |
Advance loans for acquisitions to the Company with an aggregate amount not to exceed | 7,500,000 |
Minimum working capital of not less than | 4,000,000 |
Balance sheet cash on hand to the extent in excess | $ 2,000,000 |
Maximun EBITDA | 3 |
Minimum EBITDA | 1 |
Maximun free cash flow to debt service | 1.2 |
Minimum free cash flow to debt service | 1 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) | Nov. 30, 2016 | Nov. 30, 2015 |
Product Warranties | ||
Warranty expenses | $ 100,000 | $ 51,000 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Lease Commitments | ||
Rent expense for each year ended | $ 50,000 | $ 49,000 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) | Nov. 30, 2016 | Nov. 30, 2015 |
EMPLOYEE BENEFITS DETAILS | ||
Percentage of Employee contributions to the Plan are matched by the Company at the amounts of the participant's salary. | 6.00% | |
Contributions made by the company totaled to | $ 325,000 | $ 306,000 |
Employees become vested in company contributions after two years | 20.00% |
The income tax provision consis
The income tax provision consisted of the following (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Current Provision | ||
Federal | $ 22,000 | $ 750,000 |
State | 28,000 | 31,000 |
Total current provision | 50,000 | 781,000 |
Deferred federal tax expense (benefit) | 60,000 | (910,000) |
Total | $ 110,000 | $ 690,000 |
The provision for income taxes
The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: (Details) - USD ($) | Nov. 30, 2016 | Nov. 30, 2015 |
Federal statutory corporate tax rates | ||
Tax at 34% statutory rate | $ 117,000 | $ 743,000 |
State income taxes, net of federal benefit | 18,000 | 21,000 |
Section 199 Adjustment | (17,000) | (85,000) |
Permanent differences and other | (8,000) | 11,000 |
Income tax provision | $ 110,000 | $ 690,000 |
The components of deferred tax
The components of deferred tax assets and liabilities were as follows: (Details) - USD ($) | Nov. 30, 2016 | Nov. 30, 2015 |
Current Deferred Taxes | ||
Inventory | $ 586,000 | $ 605,000 |
Deferred revenue, sales returns and warranty | 26,000 | 17,000 |
Other accrued liabilities | 78,000 | 71,000 |
Current deferred tax asset | 690,000 | 693,000 |
Depreciation | (417,000) | (360,000) |
Net deferred taxes | $ 273,000 | $ 333,000 |
SIGNIFICANT CUSTOMER INFORMAT30
SIGNIFICANT CUSTOMER INFORMATION: (Details) | Nov. 30, 2016 | Nov. 30, 2015 |
SIGNIFICANT CUSTOMER INFORMATION: | ||
Sales to these customers for the Department of Defense (DOD) and NASA contracts accounted for approximately | 56.00% | 57.00% |
Two customers accounted for sales | 18.00% | |
Two customers accounted for sales | 11.00% | |
One customer accounted for sales | 12.00% | |
Company's top 10 customers accounted for sales | 48.00% | 41.00% |
Three customers accounted for accounts receivable balance | 13.00% | |
Three customers accounted for accounts receivable balance | 12.00% | |
Three customers accounted for accounts receivable balance | 10.00% |
Shareholders (Details)
Shareholders (Details) | Dec. 15, 2015 | Dec. 16, 2014 |
Shareholders | ||
Payment of special dividend to all shareholders | 0.10 | 0.10 |
Subsequent transactions (Detail
Subsequent transactions (Details) | Dec. 13, 2016 |
Subsequent transactions | |
Micropac Industries, approved the payment of special dividend to all shareholders | 0.10 |