Micropac Industries (MPAD) 10-K 8 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2017	Feb. 08, 2018	Jun. 01, 2017
Document And Entity Information
Entity Registrant Name	Micropac Industries Inc
Entity Central Index Key	65,759
Document Type	10-K
Document Period End Date	Nov. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--11-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 5,077
Entity Common Stock, Shares Outstanding		2,578,315
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Nov. 30, 2017	Nov. 30, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 9,388	$ 10,012
Short-term investments	2,031	2,014
Receivables, net of allowance for doubtful accounts of $0 at November 30, 2017 and 2016	3,462	2,177
Inventories:
Raw materials and supplies	3,874	4,179
Work-in process	1,991	3,438
Total inventories	5,865	7,617
Prepaid income tax	227	521
Prepaid expenses and other assets	274	152
Total current assets	21,247	22,493
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land	1,518	80
Buildings	498	498
Facility improvements	1,109	1,109
Furniture and fixtures	938	669
Construction in process equipment	678	401
Machinery and equipment	8,492	8,565
Total property, plant, and equipment	13,233	11,322
Less accumulated depreciation	(9,429)	(9,136)
Net property, plant, and equipment	3,804	2,186
Deferred income taxes	203	273
Total assets	25,254	24,952
CURRENT LIABILITIES:
Accounts payable	372	612
Accrued compensation	704	454
Deferred revenue	392	1,282
Property taxes	86	94
Other accrued liabilities	140	98
Total current liabilities	1,694	2,540
SHAREHOLDERS’ EQUITY
Common stock, $.10 par value, authorized 10,000,000 shares, 3,078,315 issued and 2,578,315 outstanding at November 30, 2017 and November 30, 2016	308	308
Additional paid-in-capital	885	885
Treasury stock, 500,000 shares, at cost	(1,250)	(1,250)
Retained earnings	23,617	22,469
Total shareholders’ equity	23,560	22,412
Total liabilities and shareholders’ equity	$ 25,254	$ 24,952

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Nov. 30, 2017	Nov. 30, 2016
Statement of Financial Position [Abstract]
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, 2017	Nov. 30, 2016
Income Statement [Abstract]
NET SALES	$ 19,725	$ 17,599
COST AND EXPENSES:
Cost of goods sold	(12,176)	(12,026)
Research and development	(1,704)	(1,152)
Selling, general & administrative expenses	(4,245)	(4,132)
Total cost and expenses	(18,125)	(17,310)
OPERATING INCOME	1,600	289
Other income	58	58
Interest income (expense), net	19	(2)
INCOME BEFORE INCOME TAXES	1,677	345
PROVISION FOR INCOME TAXES
Current	(201)	(50)
Deferred	(70)	(60)
Total provision for income taxes	(271)	(110)
NET INCOME	$ 1,406	$ 235
NET INCOME PER SHARE, BASIC AND DILUTED	$ 0.55	$ 0.09
WEIGHTED AVERAGE OF SHARES, basic and diluted	2,578,315	2,578,315
DIVIDENDS PER SHARE	$ 0.10	$ 0.10

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,406	$ 235
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	293	290
Deferred tax expense	70	60
Loss (gain) on sale of equipment		1
Changes in certain current assets and liabilities:
(Increase) decrease in accounts receivable	(1,285)	183
Decrease (increase) in inventories	1,752	(749)
(Increase) decrease in prepaid expenses and other assets	(122)	9
Decrease (increase) decrease in prepaid income taxes	288	(521)
(Decrease) increase in deferred revenue	(890)	(1,573)
(Decrease) increase in accounts payable	(253)	224
Increase (decrease) in accrued compensation	250	(212)
Increase (decrease) in income taxes payable	5	(109)
Increase in all other accrued liabilities	35	29
Net cash provided by (used in) operating activities	1,549	(2,133)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturity of short term investments	4,036	4,014
Purchase of short term investments	(4,053)	(4,024)
Additions to property, plant and equipment	(1,898)	(238)
Net cash used in investing activities	(1,915)	(248)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividend	(258)	(258)
Net cash used in financing activities	(258)	(258)
Net decrease in cash and cash equivalents	(624)	(2,639)
Cash and cash equivalents at beginning of period	10,012	12,651
Cash and cash equivalents at end of period	9,388	10,012
Supplemental Cash Flow Disclosure:
Cash paid for income taxes	17	679
Supplemental Non-Cash Investing Activity:
Accrued additions to equipment	$ 12	$ (16)

Statement of Shareholders Equit

Statement of Shareholders Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings / Accumulated Deficit	Total
Beginning Balance at Nov. 30, 2015	$ 308	$ 885	$ (1,250)	$ 22,492	$ 22,435
Dividend				(258)	(258)
Net income				235	235
Ending Balance at Nov. 30, 2016	308	885	(1,250)	22,469	22,412
Dividend				(258)	(258)
Net income				1,406	1,406
Ending Balance at Nov. 30, 2017	$ 308	$ 885	$ (1,250)	$ 23,617	$ 23,560

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	12 Months Ended
	Nov. 30, 2017
Accounting Policies [Abstract]
BUSINESS DESCRIPTION	1. BUSINESS DESCRIPTION: Micropac Industries, Inc. (the “Company”), a Delaware corporation, designs, manufactures and distributes various types of microelectronic circuits, solid state relays, power controllers, and optoelectronic components and assemblies. The Company’s products are used as components and assemblies in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, satellite 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, 2017
Accounting Policies [Abstract]
SUMMARY OF 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, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Short-Term Investments The Company has $2,031,000 and $2,014,000 in short-term investments at November 30, 2017 and 2016, respectively. 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 to the lower of cost or market via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. 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, 2017 and 2016. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes 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 2017 and 2016, 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, 2017
Fair Value Disclosures [Abstract]
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, 2017 and 2016. 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, 2017 and 2016.

NOTES PAYABLE TO BANKS

NOTES PAYABLE TO BANKS	12 Months Ended
	Nov. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
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. 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 revolving line of credit and is currently in compliance with the financial covenants.

PRODUCT WARRANTIES

PRODUCT WARRANTIES	12 Months Ended
	Nov. 30, 2017
Guarantees and Product Warranties [Abstract]
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 $49,000 and $100,000 in 2017 and 2016, respectively.

LEASE COMMITMENTS

LEASE COMMITMENTS	12 Months Ended
	Nov. 30, 2017
Leases [Abstract]
LEASE COMMITMENTS	6. LEASE COMMITMENTS: Rent expense for each of the years ended November 30, 2017 and 2016 was $50,000 and $50,000 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. In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842)

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Nov. 30, 2017
Postemployment Benefits [Abstract]
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 $292,000 in 2017 and $325,000 in 2016. 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, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	8. INCOME TAXES: The income tax provision consisted of the following for the years ended November 30: 2017 2016 Current Provision: Federal $ 171,000 $ 22,000 State 30,000 28,000 201,000 50,000 Deferred federal tax expense 70,000 60,000 Total $ 271,000 $ 110,000 The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: 2017 2016 Tax at 34% statutory rate $ 570,000 $ 117,000 State income taxes, net of federal benefit 20,000 18,000 Section 199 Adjustment (45,000 ) (17,000 ) Research and Development Tax Credit (279,000 ) — Permanent differences and other 5,000 (8,000 Income tax provision $ 271,000 $ 110,000 The components of deferred tax assets and liabilities were as follows: 2017 2016 Deferred tax assets (liabilities) Inventory $ 432,000 $ 586,000 Deferred revenue, sales returns and warranty 55,000 26,000 Other accrued liabilities 83,000 78,000 Depreciation (367,000 ) (417,000 ) Net deferred assets $ 203,000 $ 273,000 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, 2017
Segment Reporting [Abstract]
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 60% of the Company’s revenues in 2017 compared to 56% in 2016. The Company’s major customers are Lockheed Martin, Northrop Grumman, Rockwell Collins, United Technologies, Raytheon, Boeing and L-3. Three customers accounted for 16%, 13% and 10% of the Company’s sales during 2017 and two customers accounted for 18% and 11% of the Company’s sales in 2016. The Company’s top 10 customers accounted for 49% of the Company’s sales during 2017 and 48% of the Company’s sales during 2016. Three customers accounted for 19%, 18% and 14% of the accounts receivable balance as of November 30, 2017.

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	12 Months Ended
	Nov. 30, 2017
Equity [Abstract]
SHAREHOLDERS’ EQUITY	10. SHAREHOLDERS’ EQUITY: On December 15, 2015, 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 12, 2016. The dividend was paid to shareholders on February 11, 2016. 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Nov. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENTS: On December 12, 2017, 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, 10 2018. The dividend will be paid to shareholders on or about February 9, 2018. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into United States tax law, which among other provisions will lower the corporate tax rate to 21%. Given this date of enactment, our financial statements as of and for the year ended November 30, 2017 do not reflect the impact of the Act. The Company is in the process of analyzing the potential aggregate impact of the Act and will reflect any such impact in the quarterly report for the period in which the law was enacted.

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Nov. 30, 2017
Accounting Policies [Abstract]
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, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers
Short-Term Investments	Short-Term Investments The Company has $2,031,000 and $2,014,000 in short-term investments at November 30, 2017 and 2016, respectively. 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 to the lower of cost or market via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory.
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, 2017 and 2016. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
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 2017 and 2016, 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

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Nov. 30, 2017
Accounting Policies [Abstract]
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

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Nov. 30, 2017
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision	2017 2016 Current Provision: Federal $ 171,000 $ 22,000 State 30,000 28,000 201,000 50,000 Deferred federal tax expense 70,000 60,000 Total $ 271,000 $ 110,000
Schedule of Reconciliation of Income Tax Expense using U. S. Statutory Federal Tax Rate to Actual Income Tax Expense	2017 2016 Tax at 34% statutory rate $ 570,000 $ 117,000 State income taxes, net of federal benefit 20,000 18,000 Section 199 Adjustment (45,000 ) (17,000 ) Research and Development Tax Credit (279,000 ) — Permanent differences and other 5,000 (8,000 Income tax provision $ 271,000 $ 110,000
Schedule of Deferred Tax Assets and Liabilities	2017 2016 Deferred tax assets (liabilities) Inventory $ 432,000 $ 586,000 Deferred revenue, sales returns and warranty 55,000 26,000 Other accrued liabilities 83,000 78,000 Depreciation (367,000 ) (417,000 ) Net deferred assets $ 203,000 $ 273,000

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details)	12 Months Ended
	Nov. 30, 2017
Accounting Policies [Abstract]
BuildingsAverageLife	15
FacilityImprovementsUsefulLifeMinimum	8
FacilityImprovementsUsefulLifeMaximum	15
Machinery and equipmentUsefulLifeMinimum	5
Machinery and equipmentUsefulLifeMaximum	10
FurnitureAndFixuresUsefulLifeMinimum	5
FurnitureAndFixuresUsefulLifeMaximum	8

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	Nov. 30, 2017	Nov. 30, 2016
Accounting Policies [Abstract]
Short-term investments maturity date more than 90 days	$ 2,031	$ 2,014
Reclassified tax liability		$ 417

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details Narrative) - USD ($)	Nov. 30, 2017	Nov. 30, 2016
Fair Value Disclosures [Abstract]
Financial assets or liabilities measured at fair value on a recurring basis	$ 0	$ 0
Nonfinancial assets measured at fair value on a nonrecurring basis	$ 0	$ 0

NOTES PAYABLE TO BANKS (Details

NOTES PAYABLE TO BANKS (Details Narrative) $ in Thousands	Jun. 01, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loan Agreement provides for revolving credit loans	$ 6,000
Minimum working capital of not less than	4,000
Balance sheet cash on hand to the extent in excess	$ 2,000
Maximum EBITDA	3
Minimum EBITDA	1
Maximum free cash flow to debt service	1.2
Minimum free cash flow to debt service	1

PRODUCT WARRANTIES (Details Nar

PRODUCT WARRANTIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Guarantees and Product Warranties [Abstract]
Warranty expense	$ 49	$ 100

LEASE COMMITMENTS (Details Narr

LEASE COMMITMENTS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Leases [Abstract]
Rent expense	$ 50	$ 50

EMPLOYEE BENEFITS (Details Narr

EMPLOYEE BENEFITS (Details Narrative) - USD ($) $ in Thousands	Nov. 30, 2017	Nov. 30, 2016
Postemployment Benefits [Abstract]
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	$ 292	$ 325
Employees become vested in company contributions after two years	20.00%

INCOME TAXES - Summary of Incom

INCOME TAXES - Summary of Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Current Provision:
Federal	$ 171	$ 22
State	30	28
Total current provision	201	50
Deferred federal tax expense	70	60
Total	$ 271	$ 110

INCOME TAXES - Schedule of Reco

INCOME TAXES - Schedule of Reconciliation of Income Tax Expense using U. S. Statutory Federal Tax Rate to Actual Income Tax Expense (Details) - USD ($) $ in Thousands	Nov. 30, 2017	Nov. 30, 2016
Income Tax Disclosure [Abstract]
Tax at 34% statutory rate	$ 570	$ 117
State income taxes, net of federal benefit	20	18
Section 199 Adjustment	(45)	(17)
Research and Development Tax Credit	(279)
Permanent differences and other	5	(8)
Income tax provision	$ 271	$ 110

INCOME TAXES - Schedule of Defe

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Nov. 30, 2017	Nov. 30, 2016
Deferred tax assets (liabilities)
Inventory	$ 432	$ 586
Deferred revenue, sales returns and warranty	55	26
Other accrued liabilities	83	78
Depreciation	(367)	(417)
Net deferred assets	$ 203	$ 273

SIGNIFICANT CUSTOMER INFORMAT31

SIGNIFICANT CUSTOMER INFORMATION (Details Narrative)	Nov. 30, 2017	Nov. 30, 2016
Segment Reporting [Abstract]
Sales to these customers for the Department of Defense (DOD) and NASA contracts accounted for approximately	60.00%	56.00%
Three customers accounted for sales	16.00%
Three customers accounted for sales	13.00%
Three customers accounted for sales	10.00%
Two customers accounted for sales		18.00%
Two customers accounted for sales		11.00%
Company's top 10 customers accounted for sales	49.00%	48.00%
Three customers accounted for accounts receivable balance	19.00%
Three customers accounted for accounts receivable balance	18.00%
Three customers accounted for accounts receivable balance	14.00%

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative)	Dec. 13, 2016	Dec. 15, 2015
Equity [Abstract]
Payment of special dividend to all shareholders	0.10	0.10

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Dec. 12, 2017
Subsequent Event [Member]
Approved payment of special dividend	0.10