Cover
Cover - shares | 6 Months Ended | |
May 29, 2021 | Jul. 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 29, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --11-30 | |
Entity File Number | 0-5109 | |
Entity Registrant Name | MICROPAC INDUSTRIES, INC. | |
Entity Central Index Key | 0000065759 | |
Entity Tax Identification Number | 75-1225149 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 905 E. Walnut | |
Entity Address, City or Town | Garland | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75040 | |
City Area Code | 972 | |
Local Phone Number | 272-3571 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | MPAD | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,578,315 |
CONDENSED BALANCE SHEET
CONDENSED BALANCE SHEET - USD ($) $ in Thousands | May 29, 2021 | Nov. 30, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 13,053 | $ 14,619 |
Receivables, net of allowance for doubtful accounts of $0 at May 29, 2021 and November 30, 2020 | 3,719 | 2,639 |
Income tax receivable | 0 | 200 |
Contract assets | 906 | 512 |
Inventories: | ||
Raw materials and supplies | 5,802 | 5,792 |
Work-in process | 3,647 | 3,345 |
Total inventories | 9,449 | 9,137 |
Prepaid expenses and other assets | 491 | 515 |
Total current assets | 27,618 | 27,622 |
PROPERTY, PLANT AND EQUIPMENT, at cost: | ||
Land | 1,518 | 1,518 |
Buildings | 498 | 498 |
Facility improvements | 1,109 | 1,109 |
Furniture and fixtures | 1,018 | 1,015 |
Construction in process | 2,239 | 1,044 |
Machinery and equipment | 9,318 | 9,169 |
Total property, plant, and equipment | 15,700 | 14,353 |
Less accumulated depreciation | (10,576) | (10,418) |
Net property, plant, and equipment | 5,124 | 3,935 |
Operating lease right to use asset | 93 | 117 |
Deferred income taxes, net | 27 | 27 |
Total assets | 32,862 | 31,701 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,267 | 843 |
Accrued compensation | 890 | 981 |
Deferred revenue | 217 | 111 |
Property taxes | 135 | 129 |
Other accrued liabilities | 85 | 53 |
Total current liabilities | 2,594 | 2,117 |
Operating lease liabilities | 67 | 117 |
Total liabilities | 2,661 | 2,234 |
SHAREHOLDERS’ EQUITY | ||
Common stock, $.10 par value, authorized 10,000,000 shares, 3,078,315 issued and 2,578,315 outstanding at May 29, 2021 and November 30 2020 | 308 | 308 |
Additional paid-in-capital | 885 | 885 |
Treasury stock, 500,000 shares, at cost | (1,250) | (1,250) |
Retained earnings | 30,258 | 29,524 |
Total shareholders’ equity | 30,201 | 29,467 |
Total liabilities and shareholders’ equity | $ 32,862 | $ 31,701 |
CONDENSED BALANCE SHEET (Parent
CONDENSED BALANCE SHEET (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | May 29, 2021 | Nov. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 0 | $ 0 |
Common Stock, Par or Stated Value Per Share | $ 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 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Income Statement [Abstract] | ||||
NET SALES | $ 7,635 | $ 5,877 | $ 11,685 | $ 11,834 |
COST AND EXPENSES: | ||||
Cost of goods sold | (4,141) | (3,543) | (6,831) | (6,868) |
Research and development | (398) | (408) | (743) | (886) |
Selling, general & administrative expenses | (1,590) | (1,358) | (2,979) | (2,733) |
Total cost and expenses | 6,129 | 5,309 | 10,553 | 10,487 |
OPERATING INCOME | 1,506 | 568 | 1,132 | 1,347 |
Other income (expense), net | (3) | 1 | 21 | 26 |
INCOME BEFORE TAXES | 1,503 | 569 | 1,153 | 1,373 |
Provision for taxes | (210) | (80) | (161) | (192) |
NET INCOME | $ 1,293 | $ 489 | $ 992 | $ 1,181 |
NET INCOME PER SHARE, BASIC AND DILUTED | $ 0.50 | $ 0.19 | $ 0.38 | $ 0.46 |
DIVIDENDS PER SHARE | $ 0 | $ 0 | $ 0.10 | $ 0.10 |
WEIGHTED AVERAGE OF SHARES, basic and diluted | 2,578,315 | 2,578,315 | 2,578,315 | 2,578,315 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
May 29, 2021 | May 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITES: | ||
Net income | $ 992 | $ 1,181 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 197 | 193 |
Loss on disposal of equipment | 0 | 23 |
Change in right of use of asset | 23 | 23 |
Changes in certain current assets and liabilities | ||
Accounts receivable | (1,080) | 76 |
Contract Assets | (394) | (147) |
Inventories | (312) | (1,164) |
Prepaid expense and other current assets | 86 | 235 |
Prepaid income taxes | 223 | 14 |
Accrued compensation | (92) | (492) |
Deferred revenue | 106 | (98) |
Accounts payable | 8 | 183 |
Income taxes | (85) | (227) |
Other accrued liabilities | 13 | (56) |
Lease liabilities | (23) | (23) |
Net cash used in by operating activities | (338) | (279) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sale of short term investments | 2,089 | |
Additions to property, plant and equipment | (970) | (122) |
Net cash provided by (used in) investing activities | (970) | 1,967 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash dividend | (258) | (258) |
Proceeds from short term debt | 0 | 1,924 |
Repayment of short term debt | 0 | (1,924) |
Net cash used in financing activities | (258) | (258) |
Net change in cash and cash equivalents | (1,566) | 1,430 |
Cash and cash equivalents at beginning of period | 14,619 | 13,890 |
Cash and cash equivalents at end of period | 13,053 | 15,320 |
Supplemental Cash Flow Disclosure: | ||
Cash paid for income taxes | 24 | 419 |
Supplemental Non-Cash Flow Disclosure: | ||
Accrued additions to equipment | $ 414 | $ 0 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Nov. 30, 2019 | $ 308 | $ 885 | $ 1,250 | $ 28,310 | $ 28,253 |
Net income | 1,181 | ||||
Ending balance, value at May. 30, 2020 | 308 | 885 | 1,250 | 29,233 | 29,176 |
Beginning balance, value at Feb. 29, 2020 | 308 | 885 | 1,250 | 28,744 | 28,687 |
Net income | 0 | 0 | 0 | 489 | 489 |
Ending balance, value at May. 30, 2020 | 308 | 885 | 1,250 | 29,233 | 29,176 |
Beginning balance, value at Nov. 30, 2020 | 308 | 885 | 1,250 | 29,524 | 29,467 |
Dividend | 0 | 0 | 0 | (258) | (258) |
Net income | 0 | 0 | 0 | (301) | (301) |
Ending balance, value at Feb. 27, 2021 | 308 | 885 | 1,250 | 28,965 | 28,908 |
Beginning balance, value at Nov. 30, 2020 | 308 | 885 | 1,250 | 29,524 | 29,467 |
Net income | 992 | ||||
Ending balance, value at May. 29, 2021 | 308 | 885 | 1,250 | 30,258 | 30,201 |
Beginning balance, value at Feb. 27, 2021 | 308 | 885 | 1,250 | 28,965 | 28,908 |
Net income | 0 | 0 | 0 | 1,293 | 1,293 |
Ending balance, value at May. 29, 2021 | $ 308 | $ 885 | $ 1,250 | $ 30,258 | $ 30,201 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
May 29, 2021 | |
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 including solid state relays and power controllers, optoelectronic components, and sensor and display 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 9100D. 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 are 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 437 shareholders on May 29, 2021. 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 29, 2021, the results of operations for the three and six months ended May 29, 2021 and May 30, 2020 and the cash flows for the six months ended May 29, 2021 and May 30, 2020. Unaudited financial statements are prepared on a basis substantially consistent with those audited for the year ended November 30, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) 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, 2020 Form 10-K filed with the SEC, including the audited financial statements and the accompanying notes thereto. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
May 29, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Note 2 SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The core principle of revenue recognition under accounting principles generally accepted in the Unites States of America (GAAP) is that the Company 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. The Company's revenue on the majority of its customer contracts are recognized at a point in time, generally upon shipment of products. To achieve that core principle, the Company applies 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 purchase orders and/or contracts with customers associated with manufacture of products. 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 shipment of products. 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. To the extent our actual costs vary from the fixed price that was negotiated, we will generate more or less profit or could incur a loss. 4. Allocate the transaction price to the performance obligations in the contract. The Company’s 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. 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. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 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, which is generally upon shipment. 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, the Company recognizes revenue for the cost incurred of work in process 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 customers and the contracts require us to manage and limit the level of work in process to meet the scheduled delivery dates. 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 obligations are determined and we recognize revenue at the point in time in which each performance obligation is fully satisfied. Disaggregation of Revenue The following table summarizes the Company’s Net Sales by Product Line 5/29/2021 5/30/2020 Microcircuits $ 2,741 $ 3,526 Optoelectronics 3,774 3,000 Sensors and Displays 5,170 5,308 Total Sales of Products $ 11,685 $ 11,834 Timing of revenue recognition Transferred at a point in time $ 10,779 $ 11,168 Transferred over time 906 666 Total Revenue $ 11,685 $ 11,834 The following table summarizes the Company’s Net Sales by Major Market 2021 Second Quarter Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 2,588 $ 951 $ 1,158 $ 140 $ 4,836 Domestic Distribution 2,308 172 — 178 2,658 International 64 9 — 68 141 Total Net Distributions $ 4,960 $ 1,131 $ 1,158 $ 386 $ 7,635 2020 Second Quarter Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 1,481 $ 563 $ 1,057 $ 98 $ 3,199 Domestic Distribution 2,071 2 8 168 $ 2,249 International 137 287 — 5 $ 429 Total Net Distributions $ 3,689 $ 852 $ 1,065 $ 271 $ 5,877 2021 Six Months Sales by Major Market Military Space Medical Total Domestic Direct $ 4,011 $ 1,170 $ 1,708 $ 298 $ 7,176 Domestic Distribution 3,335 536 — 297 4,168 International 127 136 — 78 341 Total Net Distributions $ 7,473 $ 1,841 $ 1,708 $ 663 $ 11,685 2020 Six Months Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 2,623 $ 1,248 $ 1,814 $ 493 $ 6,178 Domestic Distribution 4,563 2 13 278 $ 4,856 International 305 458 — 37 $ 800 Total Net Distributions $ 7,491 $ 1,708 $ 1,827 $ 808 $ 11,834 Receivables, net, Contract Assets and Contract Liabilities The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. Receivables, net, contract assets and contract liabilities May 29, 2021 November 30, 2020 Receivables, net $ 3,719 $ 2,639 Contract assets $ 906 $ 512 Contract liabilities $ 217 $ 111 Revenue recognized in 2021 that was included in the deferred revenue liability balance at the beginning of the year was approximately $ 2,000 Contract costs The Company does not have material 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. Leases In the first quarter of 2020, the Company entered into a three (3) year lease extension on the property that has been leased on a year to year basis. As a result, we recognized $ 165,000 25,000 23,000 3.25% The Undiscounted Future Minimum Lease Payments 5/29/2021 2021 $ 27,000 2022 55,000 2023 14,000 Total lease payments 96,000 Interest 3,000 Present value of lease liabilities $ 93,000 Short-Term Investments The Company had no 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 29, 2021 November 30, 2020. 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: Schedule of Plant, Property, and Equipment Useful Lives Buildings ......................................................................................................................................................... 15 40 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 The cost of all projects for construction of buildings, other improvements, and equipment assets that are in progress (under way) at a particular point in time are reported as construction in process until such time as the project is complete. Depreciation is not applicable while assets are accounted for as construction in process. Once the asset is placed into service into the appropriate category of fixed assets, it will be depreciated over the applicable useful life. 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. Use of Estimates The preparation of financial statements in conformity with GAAP 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. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
May 29, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | Note 3 NEW ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
May 29, 2021 | |
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 29, 2021 and November 30, 2020. 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 29, 2021 and November 30, 2020. |
COMMITMENTS
COMMITMENTS | 6 Months Ended |
May 29, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | Note 5 COMMITMENTS The Company obtained a commercial real estate construction loan for the construction of a new 76,000 square foot manufacturing center on the 9.2 acres of land in Garland, Texas that the Company has purchased. On March 26, 2021, the Company (acting as borrower) entered into a Construction Loan Agreement with Frost Bank (“Frost”), (acting as lender). The Construction Loan Agreement provides for a construction loan, in amounts not to exceed a total principal balance of $ 16,160,000 3.40% On March 26, 2021, the Company renewed the Revolving Loan Agreement with Frost through the “Sixth Amendment to Loan Agreement.” (Attached as Exhibit 10.2 hereto). The Revolving Loan Agreement provides for revolving credit loans, in amounts not to exceed a total principal balance of $ 6,000,000 3.25% Construction Loans Principal and interest shall be due and payable monthly in an amounts determined by Lender required to fully amortize the outstanding principal balance of this Note over a period of twenty-five (25) years, payable on the twenty-sixth (26th) day of each and every calendar month, beginning April 26, 2023, and continuing regularly thereafter until March 26, 2031, when the entire amount hereof, principal and accrued interest then remaining unpaid, shall be then due and payable; interest being calculated on the unpaid principal each day principal is outstanding and all payments made credited to any collection costs and late charges, to the discharge of the interest accrued and to the reduction of the principal, in such order as Lender shall determine. The interest rate of ( 3.40% Interest only shall be due and payable monthly as it accrues on the twenty-sixth (26th) day of each and every calendar month, beginning April 26, 2021, and continuing regularly and monthly thereafter until March 26, 2023; interest being calculated on the unpaid principal each day principal is outstanding and all payments made credited to any collection costs and late charges, to the discharge of the interest accrued and to the reduction of the principal, in such order as Lender shall determine. The loan shall be secured by a “Deed of Trust, Security Agreement – Financing Statement” covering the 9.2 acre tract in Garland, Texas and the improvements made on it. Revolving Credit Loans The interest on the outstanding and unpaid principal balance shall be computed at a per annum rate equal to the lesser of (a) a rate equal to the Prime Rate per annum; provided, however, in no event shall the resulting rate be less than three and one-quarter percent (3.25%). |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
May 29, 2021 | |
Accounting Policies [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 and six months ended May 29, 2021 and May 30, 2020, the Company had no dilutive potential common stock instruments. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 6 Months Ended |
May 29, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | Note 7 SHAREHOLDERS’ EQUITY On December 8, 2020 0.10 January 6, 2021 February 12, 2021 On December 10, 2019 0.10 January 8, 2020 February 14, 2020 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
May 29, 2021 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition The core principle of revenue recognition under accounting principles generally accepted in the Unites States of America (GAAP) is that the Company 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. The Company's revenue on the majority of its customer contracts are recognized at a point in time, generally upon shipment of products. To achieve that core principle, the Company applies 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 purchase orders and/or contracts with customers associated with manufacture of products. 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 shipment of products. 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. To the extent our actual costs vary from the fixed price that was negotiated, we will generate more or less profit or could incur a loss. 4. Allocate the transaction price to the performance obligations in the contract. The Company’s 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. 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. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 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, which is generally upon shipment. 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, the Company recognizes revenue for the cost incurred of work in process 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 customers and the contracts require us to manage and limit the level of work in process to meet the scheduled delivery dates. 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 obligations are determined and we recognize revenue at the point in time in which each performance obligation is fully satisfied. |
Disaggregation of Revenue | Disaggregation of Revenue The following table summarizes the Company’s Net Sales by Product Line 5/29/2021 5/30/2020 Microcircuits $ 2,741 $ 3,526 Optoelectronics 3,774 3,000 Sensors and Displays 5,170 5,308 Total Sales of Products $ 11,685 $ 11,834 Timing of revenue recognition Transferred at a point in time $ 10,779 $ 11,168 Transferred over time 906 666 Total Revenue $ 11,685 $ 11,834 The following table summarizes the Company’s Net Sales by Major Market 2021 Second Quarter Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 2,588 $ 951 $ 1,158 $ 140 $ 4,836 Domestic Distribution 2,308 172 — 178 2,658 International 64 9 — 68 141 Total Net Distributions $ 4,960 $ 1,131 $ 1,158 $ 386 $ 7,635 2020 Second Quarter Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 1,481 $ 563 $ 1,057 $ 98 $ 3,199 Domestic Distribution 2,071 2 8 168 $ 2,249 International 137 287 — 5 $ 429 Total Net Distributions $ 3,689 $ 852 $ 1,065 $ 271 $ 5,877 2021 Six Months Sales by Major Market Military Space Medical Total Domestic Direct $ 4,011 $ 1,170 $ 1,708 $ 298 $ 7,176 Domestic Distribution 3,335 536 — 297 4,168 International 127 136 — 78 341 Total Net Distributions $ 7,473 $ 1,841 $ 1,708 $ 663 $ 11,685 2020 Six Months Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 2,623 $ 1,248 $ 1,814 $ 493 $ 6,178 Domestic Distribution 4,563 2 13 278 $ 4,856 International 305 458 — 37 $ 800 Total Net Distributions $ 7,491 $ 1,708 $ 1,827 $ 808 $ 11,834 |
Receivables, net, Contract Assets and Contract Liabilities | Receivables, net, Contract Assets and Contract Liabilities The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. Receivables, net, contract assets and contract liabilities May 29, 2021 November 30, 2020 Receivables, net $ 3,719 $ 2,639 Contract assets $ 906 $ 512 Contract liabilities $ 217 $ 111 Revenue recognized in 2021 that was included in the deferred revenue liability balance at the beginning of the year was approximately $ 2,000 |
Contract costs | Contract costs The Company does not have material 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. |
Leases | Leases In the first quarter of 2020, the Company entered into a three (3) year lease extension on the property that has been leased on a year to year basis. As a result, we recognized $ 165,000 25,000 23,000 3.25% The Undiscounted Future Minimum Lease Payments 5/29/2021 2021 $ 27,000 2022 55,000 2023 14,000 Total lease payments 96,000 Interest 3,000 Present value of lease liabilities $ 93,000 |
Short-Term Investments | Short-Term Investments The Company had no |
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 29, 2021 November 30, 2020. |
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: Schedule of Plant, Property, and Equipment Useful Lives Buildings ......................................................................................................................................................... 15 40 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 The cost of all projects for construction of buildings, other improvements, and equipment assets that are in progress (under way) at a particular point in time are reported as construction in process until such time as the project is complete. Depreciation is not applicable while assets are accounted for as construction in process. Once the asset is placed into service into the appropriate category of fixed assets, it will be depreciated over the applicable useful life. 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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
May 29, 2021 | |
Accounting Policies [Abstract] | |
Net Sales by Product Line | The following table summarizes the Company’s Net Sales by Product Line 5/29/2021 5/30/2020 Microcircuits $ 2,741 $ 3,526 Optoelectronics 3,774 3,000 Sensors and Displays 5,170 5,308 Total Sales of Products $ 11,685 $ 11,834 Timing of revenue recognition Transferred at a point in time $ 10,779 $ 11,168 Transferred over time 906 666 Total Revenue $ 11,685 $ 11,834 |
Net Sales by Major Market | The following table summarizes the Company’s Net Sales by Major Market 2021 Second Quarter Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 2,588 $ 951 $ 1,158 $ 140 $ 4,836 Domestic Distribution 2,308 172 — 178 2,658 International 64 9 — 68 141 Total Net Distributions $ 4,960 $ 1,131 $ 1,158 $ 386 $ 7,635 2020 Second Quarter Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 1,481 $ 563 $ 1,057 $ 98 $ 3,199 Domestic Distribution 2,071 2 8 168 $ 2,249 International 137 287 — 5 $ 429 Total Net Distributions $ 3,689 $ 852 $ 1,065 $ 271 $ 5,877 2021 Six Months Sales by Major Market Military Space Medical Total Domestic Direct $ 4,011 $ 1,170 $ 1,708 $ 298 $ 7,176 Domestic Distribution 3,335 536 — 297 4,168 International 127 136 — 78 341 Total Net Distributions $ 7,473 $ 1,841 $ 1,708 $ 663 $ 11,685 2020 Six Months Sales by Major Market Military Space Medical Commercial Total Domestic Direct $ 2,623 $ 1,248 $ 1,814 $ 493 $ 6,178 Domestic Distribution 4,563 2 13 278 $ 4,856 International 305 458 — 37 $ 800 Total Net Distributions $ 7,491 $ 1,708 $ 1,827 $ 808 $ 11,834 |
Receivables, net, contract assets and contract liabilities | Receivables, net, contract assets and contract liabilities May 29, 2021 November 30, 2020 Receivables, net $ 3,719 $ 2,639 Contract assets $ 906 $ 512 Contract liabilities $ 217 $ 111 Revenue recognized in 2021 that was included in the deferred revenue liability balance at the beginning of the year was approximately $ 2,000 |
Undiscounted Future Minimum Lease Payments | The Undiscounted Future Minimum Lease Payments 5/29/2021 2021 $ 27,000 2022 55,000 2023 14,000 Total lease payments 96,000 Interest 3,000 Present value of lease liabilities $ 93,000 |
Schedule of Plant, Property, and Equipment Useful Lives | 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: Schedule of Plant, Property, and Equipment Useful Lives Buildings ......................................................................................................................................................... 15 40 Facility improvements ......................................................................................................................................................... 8 15 Machinery and equipment ......................................................................................................................................................... 5 10 Furniture and fixtures ......................................................................................................................................................... 5 8 |
Net Sales by Product Line (Deta
Net Sales by Product Line (Details) - USD ($) $ in Thousands | May 29, 2021 | May 30, 2020 |
Accounting Policies [Abstract] | ||
Microcircuits | $ 2,741 | $ 3,526 |
Optoelectronics | 3,774 | 3,000 |
Sensors and Displays | 5,170 | 5,308 |
Total Sales of Products | 11,685 | 11,834 |
Transferred at a point in time | 10,779 | 11,168 |
Transferred over time | 906 | 666 |
Total Revenue | $ 11,685 | $ 11,834 |
Net Sales by Major Market (Deta
Net Sales by Major Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Domestic Direct | $ 4,836 | $ 3,199 | $ 7,176 | $ 6,178 |
Domestic Distribution | 2,658 | 2,249 | 4,168 | 4,856 |
International | 141 | 429 | 341 | 800 |
Total Net Distributions | 7,635 | 5,877 | 11,685 | 11,834 |
Military [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Domestic Direct | 2,588 | 1,481 | 4,011 | 2,623 |
Domestic Distribution | 2,308 | 2,071 | 3,335 | 4,563 |
International | 64 | 137 | 127 | 305 |
Total Net Distributions | 4,960 | 3,689 | 7,473 | 7,491 |
Space [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Domestic Direct | 951 | 563 | 1,170 | 1,248 |
Domestic Distribution | 172 | 2 | 536 | 2 |
International | 9 | 287 | 136 | 458 |
Total Net Distributions | 1,131 | 852 | 1,841 | 1,708 |
Medical [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Domestic Direct | 1,158 | 1,057 | 1,708 | 1,814 |
Domestic Distribution | 8 | 0 | 13 | |
International | 0 | 0 | 0 | |
Total Net Distributions | 1,158 | 1,065 | 1,708 | 1,827 |
Commercial [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Domestic Direct | 140 | 98 | 298 | 493 |
Domestic Distribution | 178 | 168 | 297 | 278 |
International | 68 | 5 | 78 | 37 |
Total Net Distributions | $ 386 | $ 271 | $ 663 | $ 808 |
Receivables, net, contract asse
Receivables, net, contract assets and contract liabilities (Details) - USD ($) $ in Thousands | May 29, 2021 | Nov. 30, 2020 |
Accounting Policies [Abstract] | ||
Receivables, net | $ 3,719 | $ 2,639 |
Contract assets | 906 | 512 |
Contract liabilities | $ 217 | $ 111 |
Undiscounted Future Minimum Lea
Undiscounted Future Minimum Lease Payments (Details) $ in Thousands | May 29, 2021USD ($) |
Accounting Policies [Abstract] | |
2021 | $ 27,000 |
2022 | 55,000 |
2023 | 14,000 |
Total lease payments | 96,000 |
Interest | (3,000) |
Present value of lease liabilities | $ 93,000 |
Schedule of Plant, Property, an
Schedule of Plant, Property, and Equipment Useful Lives (Details) | 6 Months Ended |
May 29, 2021 | |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 15 years |
Minimum [Member] | Facility Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 8 years |
Minimum [Member] | Machinery Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 5 years |
Minimum [Member] | Furniture Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 5 years |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 40 years |
Maximum [Member] | Facility Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 15 years |
Maximum [Member] | Machinery Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 10 years |
Maximum [Member] | Furniture Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 8 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | |||
May 29, 2021 | May 30, 2020 | Feb. 27, 2021 | Nov. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Deferred Revenue Liability | $ 2,000 | |||
Operating Lease Liability | $ 165,000 | |||
Right-of-Use Assets | $ 165,000 | |||
Operating Lease, Expense | $ 25,000 | $ 23,000 | ||
Incremental Borrowing Rate | 3.25% | |||
Short-term Investments | $ 0 | $ 0 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) - USD ($) | May 29, 2021 | Apr. 26, 2021 | Mar. 26, 2021 | Jan. 23, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Maximum Construction Loan | $ 16,160,000 | |||
Construction Loan, Maximum Interest Rate | 3.40% | |||
Maximum Revolving Credit Loan | $ 6,000,000 | |||
Revolving Credit Loan Interest Rate | 3.25% | |||
Construction Loan Interest Rate | 3.40% | |||
Terms of Interest Rate | Interest only shall be due and payable monthly as it accrues on the twenty-sixth (26th) day of each and every calendar month, beginning April 26, 2021, and continuing regularly and monthly thereafter until March 26, 2023; interest being calculated on the unpaid principal each day principal is outstanding and all payments made credited to any collection costs and late charges, to the discharge of the interest accrued and to the reduction of the principal, in such order as Lender shall determine. |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - $ / shares | 3 Months Ended | 6 Months Ended | ||
May 29, 2021 | May 30, 2020 | May 29, 2021 | May 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0 | $ 0.10 | $ 0.10 |
Dividend 2 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Dividends Payable, Date Declared | Dec. 8, 2020 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 | |||
Dividends Payable, Date of Record | Jan. 6, 2021 | |||
Dividends Payable, Date to be Paid | Feb. 12, 2021 | |||
Dividend 1 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Dividends Payable, Date Declared | Dec. 10, 2019 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 | |||
Dividends Payable, Date of Record | Jan. 8, 2020 | |||
Dividends Payable, Date to be Paid | Feb. 14, 2020 |
Uncategorized Items - micropac1
Label | Element | Value |
Dividends | us-gaap_Dividends | $ 258,000 |
Additional Paid-in Capital [Member] | ||
Net income | us-gaap_NetIncomeLoss | 0 |
Dividends | us-gaap_Dividends | 0 |
Common Stock [Member] | ||
Net income | us-gaap_NetIncomeLoss | 0 |
Dividends | us-gaap_Dividends | 0 |
Treasury Stock [Member] | ||
Net income | us-gaap_NetIncomeLoss | 0 |
Dividends | us-gaap_Dividends | 0 |
Retained Earnings [Member] | ||
Net income | us-gaap_NetIncomeLoss | 692,000 |
Dividends | us-gaap_Dividends | $ 258,000 |