Micropac Industries (MPAD) 10-Q 9 Jul 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	May 25, 2019	Jul. 08, 2019
Document And Entity Information
Entity Registrant Name	MICROPAC INDUSTRIES INC
Entity Central Index Key	0000065759
Document Type	10-Q
Document Period End Date	May 25, 2019
Amendment Flag	false
Current Fiscal Year End Date	--05-29
Is Entity's Reporting Status Current?	No
Is Entity Emerging Growth Company?	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		2,578,315
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	May 25, 2019	Nov. 30, 2018
Current Assets
Cash and cash equivalents	$ 11,864	$ 10,483
Short-term investments	2,073	2,058
Receivables, net of allowance for doubtful accounts of $0 at May 25, 2019 and November 30, 2018	2,309	3,772
Contract Assets	416
Inventories:
Raw materials and supplies	4,113	4,593
Work-in process	2,595	1,985
Total inventories	6,708	6,578
Prepaid income tax	257	407
Prepaid expenses and other assets	389	511
Total current assets	24,016	23,809
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land	1,518	1,518
Buildings	498	498
Facility improvements	1,109	1,109
Furniture and fixtures	954	953
Construction in process equipment	607	607
Machinery and equipment	8,907	8,841
Total property, plant, and equipment	13,593	13,526
Less accumulated depreciation	(9,930)	(9,746)
Net property, plant, and equipment	3,663	3,780
Deferred income taxes, net	42	57
Total assets	27,721	27,646
CURRENT LIABILITIES:
Accounts payable	842	707
Accrued compensation	734	747
Deferred revenue	474	1,238
Property taxes	48	88
Other accrued liabilities	26	123
Total current liabilities	2,124	2,903
SHAREHOLDERS’ EQUITY
Common stock, $.10 par value, authorized 10,000,000 shares, 3,078,315 issued and 2,578,315 outstanding at May 25, 2019 and November 30, 2018	308	308
Additional paid-in capital	885	885
Treasury stock, 500,000 shares, at cost	(1,250)	(1,250)
Retained earnings	25,654	24,800
Total shareholders’ equity	25,597	24,743
Total liabilities and shareholders’ equity	$ 27,721	$ 27,646

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 25, 2019	Nov. 30, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Common Stock, par value	$ 0.1	$ 0.1
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 Operations (Unaud

Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 25, 2019	May 26, 2018	May 25, 2019	May 26, 2018
Income Statement [Abstract]
NET SALES	$ 6,908	$ 4,989	$ 10,714	$ 8,841
COST AND EXPENSES:
Cost of goods sold	(3,748)	(2,989)	(6,096)	(5,339)
Research and development	(441)	(353)	(832)	(650)
Selling, general & administrative expenses	(1,289)	(1,312)	(2,605)	(2,447)
Total cost and expenses	(5,478)	(4,654)	(9,533)	(8,436)
OPERATING INCOME	1,430	335	1,181	405
Other income		4		4
Interest income, net	25	18	48	30
INCOME BEFORE TAXES	1,455	357	1,229	439
Provision for taxes	204	(145)	172	(51)
NET INCOME	$ 1,251	$ 502	$ 1,057	$ 490
NET INCOME PER SHARE, BASIC AND DILUTED	$ 0.49	$ 0.19	$ 0.41	$ 0.19
DIVIDENDS PER SHARE			$ 0.10	$ 0.10
WEIGHTED AVERAGE OF SHARES, basic and diluted	2,578,315	2,578,315	2,578,315	2,578,315

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	May 25, 2019	May 26, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,057	$ 490
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	184	154
Deferred tax		78
Changes in certain current assets and liabilities
Accounts receivable	1,463	1,263
Inventories	(279)	(884)
Contract asset	(173)
Prepaid expense and other current assets	122	(164)
Prepaid income taxes	150	(129)
Deferred revenue	(764)	(321)
Accounts payable	112	136
Accrued compensation	(13)	(165)
Other accrued liabilities	(138)	(111)
Net cash provided by operating activities	1,721	347
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of short term investments	2,061	2,033
Purchase of short term investments	(2,076)	(2,048)
Additions to property, plant and equipment	(67)	(165)
Net cash used in investing activities	(82)	(180)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividend	(258)	(258)
Net cash used in financing activities	(258)	(258)
Net change in cash and cash equivalents	1,381	(91)
Cash and cash equivalents at beginning of period	10,483	9,388
Cash and cash equivalents at end of period	11,864	9,297
Supplemental Cash Flow Disclosure:
Cash paid for income taxes	$ 22
Supplemental Non-Cash Investing Activity:
Accrued additions to equipment		$ 74

Shareholders Equity (Unaudited)

Shareholders Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings / Accumulated Deficit	Total
Beginning Balance at Nov. 30, 2017	$ 308	$ 885	$ (1,250)	$ 23,617	$ 23,560
Dividend				(258)	(258)
Net Loss				490	490
Ending Balance at May. 26, 2018	308	885	(1,250)	23,849	23,792
Beginning Balance at Nov. 30, 2018	308	885	(1,250)	24,800	24,743
Impact of Change in Accounting Policy				55	55
Dividend				(258)	(258)
Net Loss				1,057	1,057
Ending Balance at May. 25, 2019	$ 308	$ 885	$ (1,250)	$ 25,654	$ 25,597

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	6 Months Ended
	May 25, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	Note 1 BASIS OF PRESENTATION 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 The Company’s facilities are certified and qualified by the Defense Logistics Agency (DLA) to MIL-PRF-38534 (class K-space level) and MIL-PRF-19500 JANS (space level) and are certified to ISO 9001:2008 and AS 9100C. Micropac is a National Aeronautics and Space Administration (NASA) core supplier, and is registered to AS9100-Aerospace Industry standard for supplier certification. The Company has Underwriters Laboratories (UL) approval on our industrial power controllers. The Company’s core technology is microelectronic and optoelectronic designs to include the packaging and interconnecting of multi-chip microelectronics modules. Other technologies include light emitting and light sensitive materials and products, including light emitting diodes and silicon phototransistors, and electronic integration used in the Company’s optoelectronic components and assemblies. The business of the Company was started in 1963 as a sole proprietorship. On March 3, 1969, the Company was incorporated under the name of “Micropac Industries, Inc.” in the state of Delaware. The stock was publicly held by 445 shareholders on May 25, 2019. In the opinion of management, the unaudited financial statements include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the financial position as of May 25, 2019, the results of operations for the three and six months ended May 25, 2019 and May 26, 2018, and the cash flows for the six months ended May 25, 2019 and May 26, 2018 including the statement of shareholders equity. Unaudited financial statements are prepared on a basis substantially consistent with those audited for the year ended November 30, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to the rules and regulations promulgated by the Securities and Exchange Commission. The Company’s fiscal year ends on the last day of November. The quarterly results end on the last Saturday of the quarter. It is suggested that these financial statements be read in conjunction with the November 30, 2018 Form 10-K filed with the SEC, including the audited financial statements and the accompanying notes thereto.

2. SIGNIFICANT ACCOUNTING POLIC

2. SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	May 25, 2019
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	Note 2 SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Based on a review of its customer contracts, the Company has determined that revenue on the majority of its customer contracts will continue to be recognized at a point in time, generally upon shipment of products, consistent with the Company’s historical revenue recognition model. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applied the following steps: 1. Identify the contract(s) with a customer. The Company designs, manufactures and distributes various types of microelectronic circuits, optoelectronics, and sensors and displays. 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 The Company’s revenues are from contracts and/or purchase orders associated with manufacture of products with customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. 2. Identify the performance obligations in the contract. The majority of the Company’s purchase orders or contracts with customers contain a single performance obligation, the sale of products. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company receives purchase orders for products to be delivered over multiple dates that may extend across reporting periods. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 3. Determine the transaction price. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer at a fixed price per unit shipped based on the terms of the contract or purchase order with the customer. 4. Allocate the transaction price to the performance obligations in the contract. The Company transaction price is the fixed price per unit per each delivery upon shipment. 5. Recognize revenue when (or as) the Company satisfies a performance obligation. The Company invoices for each delivery upon shipment and recognizes revenues at the fixed price for each distinct product delivered when transfer of control has occurred. For certain contracts under which the Company produces products with no alternative use and for which the Company has an enforceable right to payment during the production cycle, ASU No. 2014-09 will require the Company to recognize revenue using an over-time recognition model as opposed to recognizing revenue at the time of shipment. The Company recognizes this revenue at work in process cost plus a margin at the end of each period and records a contract asset (unbilled receivable). The majority of these products are shipped weekly and monthly to the customer. In addition, the Company may have a contract or purchase order to provide a non-recurring engineering service to a customer. These contracts are reviewed and performance obligation is determined and revenue recognized upon terms and conditions of the contract from the customer. Effective as of the beginning of the first quarter of fiscal 2019, we adopted ASU No. 2014-09 using the modified retrospective method and recognized a cumulative effect adjustment to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition model to an over-time recognition model. While the impact to net sales and net income was not material to our results of operations, the future impact of ASU No. 2014-09 is dependent on the mix and nature of specific customer contracts. Upon adoption, we recognized an increase in retained earnings of $55,000. The details of the adjustment to retained earnings upon adoption as well as the effects of the balance sheet are as follows: Balance at Balance at Assets November 30, 2018 Adjustment due to Topic 606 December 1, 2018 Contract assets $0 $242 $242 Work in process $1,985 ($173) $1,812 Deferred income tax net $57 ($15) $42 Shareholder equity Retained Earnings $24,800 $55 $24,855 The following table summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Statement of Operations for three and six months ended May 25, 2019. Three months ended May 25, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $6,909 $6,776 ($133) Cost of goods sold ($3,748) ($3,671) $77 Income before taxes $1,455 $1,400 ($55) Income tax ($204) (199) $5 Net Income $1,251 $1,201 ($50) Six months ended May 25, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $10,714 $10,298 ($416) Cost of goods sold ($6,096) ($5,799) $297 Income before taxes $1,229 $1,110 ($119) Income tax $172 $155 ($17) Net Income $1,057 $955 ($102) Disaggregation of Revenue The following table summarizes the Company’s net sales by product line. 5/25/2019 5/26/2018 Microcircuits $ 3,557 $ 1,943 Optoeletronics 3,018 2,690 Sensors and Displays 4,139 4,208 $ 10,714 $ 8,841 Timing of revenue recognition Recognized at a point in time $ 10,298 $ 8,841 Recognized over time 416 0 Total Revenue $ 10,714 $ 8,841 Deferred Revenue represents advance payments from customers and will be recognized as revenue when the performance obligations are met per the terms of the contract. Contract costs The Company does not have incremental costs to obtain a contract in the form of sales commissions or bonuses. The Company incurs other immaterial costs to obtain and fulfill a contract; however, the Company has elected the practical expedient under ASC 340-40-24-4 to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less Short-Term Investments The Company has $2,073,000 in short-term investments at May 25, 2019. 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 net realizable 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 net realizable value 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 May 25, 2019. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into United States tax law, which among other provisions lowered the corporate tax rate to 21%. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to provide guidance for companies that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance with SAB 118, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, as of the date of enactment, and during the twelve months ended November 30, 2018, we revalued all deferred tax assets and liabilities at the newly enacted Federal corporate US income tax rate. This revaluation as of enactment resulted in a non-cash provisional estimate of $77,000 to income tax expense and a corresponding reduction in the net deferred tax asset. 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.

3. NEW ACCOUNTING PRONOUNCEMENT

3. NEW ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	May 25, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	Note 3 NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842)

4. FAIR VALUE MEASUREMENT

4. FAIR VALUE MEASUREMENT	6 Months Ended
	May 25, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	Note 4 FAIR VALUE MEASUREMENT The Company had no financial assets or liabilities measured at fair value on a recurring basis as of May 25, 2019 and November 30, 2018. 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 May 25, 2019 and November 30, 2018.

5. COMMITMENTS

5. COMMITMENTS	6 Months Ended
	May 25, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	Note 5 COMMITMENTS On April 23, 2018, 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.

6. EARNINGS PER COMMON SHARE

6. EARNINGS PER COMMON SHARE	6 Months Ended
	May 25, 2019
Earnings Per Share [Abstract]
EARNINGS PER COMMON SHARE	Note 6 EARNINGS PER COMMON SHARE Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the respective periods. Diluted earnings per share gives effect to all dilutive potential common shares. For the three months ended May 25, 2019 and February 24, 2018, the Company had no dilutive potential common stock instruments.

7. SHAREHOLDERS' EQUITY

7. SHAREHOLDERS' EQUITY	6 Months Ended
	May 25, 2019
Dividends, Common Stock [Abstract]
SHAREHOLDERS' EQUITY	Note 7 SHAREHOLDERS’ EQUITY On December 12, 2017, 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, 2018. The dividend was paid to shareholders on February 8, 2018. On December 11, 2018, 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 9, 2019. The dividend was paid to shareholders on February 8, 2019.

2. SIGNIFICANT ACCOUNTING POL_2

2. SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	May 25, 2019
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Based on a review of its customer contracts, the Company has determined that revenue on the majority of its customer contracts will continue to be recognized at a point in time, generally upon shipment of products, consistent with the Company’s historical revenue recognition model. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applied the following steps: 1. Identify the contract(s) with a customer. The Company designs, manufactures and distributes various types of microelectronic circuits, optoelectronics, and sensors and displays. 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 The Company’s revenues are from contracts and/or purchase orders associated with manufacture of products with customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. 2. Identify the performance obligations in the contract. The majority of the Company’s purchase orders or contracts with customers contain a single performance obligation, the sale of products. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company receives purchase orders for products to be delivered over multiple dates that may extend across reporting periods. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 3. Determine the transaction price. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer at a fixed price per unit shipped based on the terms of the contract or purchase order with the customer. 4. Allocate the transaction price to the performance obligations in the contract. The Company transaction price is the fixed price per unit per each delivery upon shipment. 5. Recognize revenue when (or as) the Company satisfies a performance obligation. The Company invoices for each delivery upon shipment and recognizes revenues at the fixed price for each distinct product delivered when transfer of control has occurred. For certain contracts under which the Company produces products with no alternative use and for which the Company has an enforceable right to payment during the production cycle, ASU No. 2014-09 will require the Company to recognize revenue using an over-time recognition model as opposed to recognizing revenue at the time of shipment. The Company recognizes this revenue at work in process cost plus a margin at the end of each period and records a contract asset (unbilled receivable). The majority of these products are shipped weekly and monthly to the customer. In addition, the Company may have a contract or purchase order to provide a non-recurring engineering service to a customer. These contracts are reviewed and performance obligation is determined and revenue recognized upon terms and conditions of the contract from the customer. Effective as of the beginning of the first quarter of fiscal 2019, we adopted ASU No. 2014-09 using the modified retrospective method and recognized a cumulative effect adjustment to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition model to an over-time recognition model. While the impact to net sales and net income was not material to our results of operations, the future impact of ASU No. 2014-09 is dependent on the mix and nature of specific customer contracts. Upon adoption, we recognized an increase in retained earnings of $55,000. The details of the adjustment to retained earnings upon adoption as well as the effects of the balance sheet are as follows: Balance at Balance at Assets November 30, 2018 Adjustment due to Topic 606 December 1, 2018 Contract assets $0 $242 $242 Work in process $1,985 ($173) $1,812 Deferred income tax net $57 ($15) $42 Shareholder equity Retained Earnings $24,800 $55 $24,855 The following table summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Statement of Operations for three and six months ended May 25, 2019. Three months ended May 25, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $6,909 $6,776 ($133) Cost of goods sold ($3,748) ($3,671) $77 Income before taxes $1,455 $1,400 ($55) Income tax ($204) (199) $5 Net Income $1,251 $1,201 ($50) Six months ended May 25, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $10,714 $10,298 ($416) Cost of goods sold ($6,096) ($5,799) $297 Income before taxes $1,229 $1,110 ($119) Income tax $172 $155 ($17) Net Income $1,057 $955 ($102) Disaggregation of Revenue The following table summarizes the Company’s net sales by product line. 5/25/2019 5/26/2018 Microcircuits $ 3,557 $ 1,943 Optoeletronics 3,018 2,690 Sensors and Displays 4,139 4,208 $ 10,714 $ 8,841 Timing of revenue recognition Recognized at a point in time $ 10,298 $ 8,841 Recognized over time 416 0 Total Revenue $ 10,714 $ 8,841 Deferred Revenue represents advance payments from customers and will be recognized as revenue when the performance obligations are met per the terms of the contract. Contract costs The Company does not have incremental costs to obtain a contract in the form of sales commissions or bonuses. The Company incurs other immaterial costs to obtain and fulfill a contract; however, the Company has elected the practical expedient under ASC 340-40-24-4 to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less
Short-Term Investments	Short-Term Investments The Company has $2,073,000 in short-term investments at May 25, 2019. 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 net realizable 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 net realizable value 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 May 25, 2019. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into United States tax law, which among other provisions lowered the corporate tax rate to 21%. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to provide guidance for companies that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance with SAB 118, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, as of the date of enactment, and during the twelve months ended November 30, 2018, we revalued all deferred tax assets and liabilities at the newly enacted Federal corporate US income tax rate. This revaluation as of enactment resulted in a non-cash provisional estimate of $77,000 to income tax expense and a corresponding reduction in the net deferred tax asset.
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.

2. SIGNIFICANT ACCOUNTING POL_3

2. SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	May 25, 2019
Accounting Policies [Abstract]
Adjustment to retained earnings	</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="white-space: nowrap; vertical-align: top; width: 25%; padding-right: 5.4pt; padding-left: 5.4pt"> </td> <td style="white-space: nowrap; vertical-align: top; width: 19%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b>Balance at</b></font></td> <td style="white-space: nowrap; vertical-align: bottom; width: 30%; padding-right: 5.4pt; padding-left: 5.4pt"> </td> <td style="white-space: nowrap; vertical-align: top; width: 26%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b>Balance at</b></font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b>Assets</b></font></td> <td style="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>November 30, 2018</u></b></font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>Adjustment due to Topic 606</u></b></font></td> <td style="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>December 1, 2018</u></b></font></td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 9pt Arial, Helvetica, Sans-Serif">   Contract assets</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$0 </font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$242 </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$242 </font></td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 9pt Arial, Helvetica, Sans-Serif">   Work in process</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,985 </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($173)</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,812 </font></td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Deferred income tax net</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$57 </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($15)</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$42 </font></td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b>Shareholder equity</b></font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt"> </td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><font style="font: 9pt Arial, Helvetica, Sans-Serif">   Retained Earnings</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$24,800 </font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$55 </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$24,855 </font></td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>" id="sjs-B4">&lt;p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">&lt;/p> &lt;table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: top; width: 25%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;&lt;/td> &lt;td style="white-space: nowrap; vertical-align: top; width: 19%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>Balance at&lt;/b>&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; width: 30%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;&lt;/td> &lt;td style="white-space: nowrap; vertical-align: top; width: 26%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>Balance at&lt;/b>&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>Assets&lt;/b>&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>&lt;u>November 30, 2018&lt;/u>&lt;/b>&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>&lt;u>Adjustment due to Topic 606&lt;/u>&lt;/b>&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>&lt;u>December 1, 2018&lt;/u>&lt;/b>&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&#160;&#160;&#160;Contract assets&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$0 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$242 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$242 &lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&#160;&#160;&#160;Work in process&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,985 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($173)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,812 &lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Deferred income tax net&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$57 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($15)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$42 &lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>Shareholder equity&lt;/b>&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt">&#160;&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&#160;&#160;&#160;Retained Earnings&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$24,800 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$55 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$24,855 &lt;/font>&lt;/td>&lt;/tr> &lt;/table> &lt;p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt">&#160;&lt;/p>
Effects of new standard on Condensed Statement of Operations - 3 months	<b><u>Three months ended May 25, 2019</u></b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt"> </td> <td style="white-space: nowrap; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>As Reported</u></b></font></td> <td style="white-space: nowrap; width: 36%; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u>Balance without adoption of</u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u>Topic 606</u></b></p></td> <td style="white-space: nowrap; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>Effect of change</u></b></font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Net sales</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$6,909 </font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$6,776 </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($133)</font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Cost of goods sold</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($3,748)</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($3,671)</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$77</font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Income before taxes</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,455</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,400</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($55)</font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Income tax</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($204)</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">(199)</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$5</font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Net Income </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,251</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,201</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($50) </font></td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>" id="sjs-B5">&lt;p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center">&lt;b>&lt;u>Three months ended May 25, 2019&lt;/u>&lt;/b>&lt;/p> &lt;table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> &lt;tr style="vertical-align: bottom"> &lt;td style="white-space: nowrap; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;&lt;/td> &lt;td style="white-space: nowrap; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>&lt;u>As Reported&lt;/u>&lt;/b>&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; width: 36%; padding-right: 5.4pt; padding-left: 5.4pt"> &lt;p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&lt;b>&lt;u>Balance without adoption of&lt;/u>&lt;/b>&lt;/p> &lt;p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&lt;b>&lt;u>Topic 606&lt;/u>&lt;/b>&lt;/p>&lt;/td> &lt;td style="white-space: nowrap; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>&lt;u>Effect of change&lt;/u>&lt;/b>&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Net sales&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$6,909 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$6,776 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($133)&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Cost of goods sold&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($3,748)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($3,671)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$77&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Income before taxes&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,455&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,400&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($55)&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Income tax&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($204)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">(199)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$5&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Net Income &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,251&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,201&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($50) &lt;/font>&lt;/td>&lt;/tr> &lt;/table> &lt;p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt">&lt;b>&#160;&lt;/b>&lt;/p>
Effects of new standard on Condensed Statement of Operations - 6 months	<b><u>Six months ended May 25, 2019</u></b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt"> </td> <td style="white-space: nowrap; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>As Reported</u></b></font></td> <td style="white-space: nowrap; width: 36%; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u>Balance without adoption of</u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u>Topic 606</u></b></p></td> <td style="white-space: nowrap; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>Effect of change</u></b></font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Net sales</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$10,714 </font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$10,298 </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($416)</font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Cost of goods sold</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($6,096)</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($5,799)</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$297 </font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Income before taxes</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,229</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,110</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($119)</font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Income tax</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$172 </font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$155 </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($17)</font></td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">Net Income </font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,057</font></td> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">$955</font></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Arial, Helvetica, Sans-Serif">($102) </font></td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>" id="sjs-B6">&lt;p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center">&lt;b>&lt;u>Six months ended May 25, 2019&lt;/u>&lt;/b>&lt;/p> &lt;table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> &lt;tr style="vertical-align: bottom"> &lt;td style="white-space: nowrap; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;&lt;/td> &lt;td style="white-space: nowrap; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>&lt;u>As Reported&lt;/u>&lt;/b>&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; width: 36%; padding-right: 5.4pt; padding-left: 5.4pt"> &lt;p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&lt;b>&lt;u>Balance without adoption of&lt;/u>&lt;/b>&lt;/p> &lt;p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&lt;b>&lt;u>Topic 606&lt;/u>&lt;/b>&lt;/p>&lt;/td> &lt;td style="white-space: nowrap; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">&lt;b>&lt;u>Effect of change&lt;/u>&lt;/b>&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Net sales&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$10,714 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$10,298 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($416)&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Cost of goods sold&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($6,096)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($5,799)&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$297 &lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Income before taxes&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,229&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,110&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($119)&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Income tax&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$172 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$155 &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($17)&lt;/font>&lt;/td>&lt;/tr> &lt;tr> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">Net Income &lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$1,057&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">$955&lt;/font>&lt;/td> &lt;td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&lt;font style="font: 9pt Arial, Helvetica, Sans-Serif">($102) &lt;/font>&lt;/td>&lt;/tr> &lt;/table> &lt;p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt">&lt;b>&#160;&lt;/b>&lt;/p>
Disaggregation of Revenue	5/25/2019 5/26/2018 Microcircuits $ 3,557 $ 1,943 Optoeletronics 3,018 2,690 Sensors and Displays 4,139 4,208 $ 10,714 $ 8,841 Timing of revenue recognition Recognized at a point in time $ 10,298 $ 8,841 Recognized over time 416 0 Total Revenue $ 10,714 $ 8,841
Property and equipment schedule of useful lives	Buildings....................................................................................................................................................15 Facility improvements......................................................................................................................... 8-15 Machinery and equipment................................................................................................................. 5-10 Furniture and fixtures ...........................................................................................................................5-8

2. SIGNIFICANT ACCOUNTING POL_4

2. SIGNIFICANT ACCOUNTING POLICIES (Details - Property Lives)	6 Months Ended
	May 25, 2019
Buildings [Member] | Minimum [Member]
Estimated useful lives	15 years
Buildings [Member] | Maximum [Member]
Estimated useful lives	15 years
Facility Improvements [Member] | Minimum [Member]
Estimated useful lives	8 years
Facility Improvements [Member] | Maximum [Member]
Estimated useful lives	15 years
Machinery and Equipment [Member] | Minimum [Member]
Estimated useful lives	5 years
Machinery and Equipment [Member] | Maximum [Member]
Estimated useful lives	10 years
Furniture and Fixtures [Member] | Minimum [Member]
Estimated useful lives	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Estimated useful lives	8 years

2. SIGNIFICANT ACCOUNTING POL_5

2. SIGNIFICANT ACCOUNTING POLICIES (Details - Adoption) - USD ($) $ in Thousands	May 25, 2019	Dec. 01, 2018	Nov. 30, 2018
Assets
Work in process	$ 2,595		$ 1,985
Deferred income tax net	42		57
Shareholder equity
Retained Earnings	$ 25,654		24,800
Before Adoption [Member]
Assets
Contract assets			0
Work in process			1,985
Deferred income tax net			57
Shareholder equity
Retained Earnings			24,800
Topic 606 [Member]
Assets
Contract assets			242
Work in process			(173)
Deferred income tax net			(15)
Shareholder equity
Retained Earnings			$ 55
After Adoption [Member]
Assets
Contract assets		$ 242
Work in process		1,812
Deferred income tax net		42
Shareholder equity
Retained Earnings		$ 24,855

2. SIGNIFICANT ACCOUNTING POL_6

2. SIGNIFICANT ACCOUNTING POLICIES (Details - Affect 3 and 6 Months) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	May 25, 2019	May 25, 2019
Net Sales	$ 6,909	$ 10,714
Costs of goods sold	(3,748)	(6,096)
Income before taxes	1,455	1,229
Income tax	(204)	172
New income	1,251	1,057
No Adoption [Member]
Net Sales	6,776	10,298
Costs of goods sold	(3,671)	(5,799)
Income before taxes	1,400	1,110
Income tax	(199)	155
New income	1,201	955
Effective Change [Member]
Net Sales	(133)	(416)
Costs of goods sold	77	297
Income before taxes	(55)	(119)
Income tax	5	(17)
New income	$ (50)	$ (102)

2. SIGNIFICANT ACCOUNTING POL_7

2. SIGNIFICANT ACCOUNTING POLICIES (Details - Disaggregation of Revenue) - USD ($) $ in Thousands	May 25, 2019	May 26, 2018
Accounting Policies [Abstract]
Microcircuits	$ 3,557	$ 1,943
Optoeletronics	3,018	2,690
Sensors and Displays	4,139	4,208
Total Sales	10,714	8,841
Recognized at a point in time	10,298	8,841
Recognized over time	416	0
Total Revenue	$ 10,714	$ 8,841

2. SIGNIFICANT ACCOUNTING POL_8

2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2018	May 25, 2019
Accounting Policies [Abstract]
Short term investments maturity date more than 90 days	$ 2,058	$ 2,073
Revalued deferred tax assets and liabilities	$ 77,000

5. COMMITMENTS (Details Narrati

5. COMMITMENTS (Details Narrative) $ in Thousands	May 25, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Credit line maximum	$ 6,000,000
Line of credit balance	$ 0

6. EARNINGS PER COMMON SHARE (D

6. EARNINGS PER COMMON SHARE (Details Narrative) - shares	3 Months Ended	6 Months Ended
	Feb. 24, 2018	May 25, 2019
Earnings Per Share [Abstract]
Antidilutive shares excluded from EPS calculation	0	0

7. SHAREHOLDERS' EQUITY (Detail

7. SHAREHOLDERS' EQUITY (Details Narrative) - $ / shares	3 Months Ended			6 Months Ended
	May 25, 2019	May 26, 2018	Feb. 24, 2018	May 25, 2019	May 26, 2018
Equity [Abstract]
Date of declaration			Dec. 11, 2018	Dec. 12, 2017
Dividend per share			$ 0.10	$ 0.10	$ 0.10
Record date			Jan. 9, 2019	Jan. 10, 2018
Dividend paid date			Feb. 8, 2019	Feb. 8, 2018