| Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
| Jul. 31, 2015 |
| Notes to Financial Statements | |
| Cash | The Company maintains all of its cash in various
bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts. |
| Receivables | Receivables are carried at original invoice
less estimates made for doubtful receivables. Management determines the allowances for doubtful accounts by reviewing and identifying
troubled accounts on a periodic basis and by using historical experience applied to an aging of accounts. A receivable is considered
to be past due if any portion of the receivable balance is outstanding for more than 30 days. Receivables are written off when
deemed uncollectible. Recoveries of receivables previously written off are recorded when received. |
| Inventories | Inventories are valued at the lower of cost or market using the
FIFO (first-in, first-out) method. |
| Depreciation and Amortization | Equipment and leasehold improvements are stated
at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Repairs
and maintenance are charged to expense as incurred; renewals and betterments which significantly extend the useful lives of existing
equipment are capitalized. Significant leasehold improvements are capitalized and amortized over the term of the lease; equipment
is depreciated over three to ten years. |
| Prepaid Expenses | Certain expenses, primarily insurance and income
taxes, have been prepaid and will be used within one year. |
| Revenue Recognition | The Company recognizes net sales revenue upon
the shipment of product to customers. |
| Research and Development and Patents | Research and development expenditures are charged
to operations as incurred. The costs of obtaining patents, primarily legal fees, are capitalized and once obtained, amortized over
the life of the respective patent on the straight-line method. Patents relate to products that have been developed
and are being marketed by the Company. Patents pending relate to products under development. |
| Use of Estimates | The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
as of 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. |
| Income Per Comon Share | Income per common share is computed by dividing
net income by the weighted-average number of common shares outstanding during the period. When dilutive, stock options are included
as share equivalents using the treasury stock method in the calculation of diluted earnings per share. The Company has no outstanding
options or other rights to acquire its unissued common shares. |
| Comprehensive Income | Components of comprehensive income include
amounts that are included in the comprehensive income but are excluded from net income. During the quarters ending July 31, 2015
and 2014, there were no differences between the Company’s net income and comprehensive income. |
| Income Taxes | Income taxes are provided for the tax effects
of transactions reported in the financial statements and consist of taxes currently due and deferred taxes related primarily to
differences in the methods of accounting for patents, inventories, certain accrued expenses and bad debt expenses for financial
and income tax reporting purposes. The deferred income taxes represent the future tax consequences of those differences, which
will be taxable in the future. The Company files tax returns in the U.S.
federal jurisdiction and with the state of Illinois. Various tax years remain open to examinations although there are currently
no ongoing tax examinations. Managements policy is to recognize interest and penalties related to uncertain tax positions
in income tax expense. The provision for income taxes consists of the following components
as of July 31:
2015 2014
Current
Federal $ 815 $ 3,521
State 315 1,471
Provision for Income Taxes $ 1,130 $ 4,992 The differences between the U.S. federal statutory tax rate and
the Companys effective tax rate are as follows:
Period ended July 31,
2015 2014
U.S. federal statutory tax rate 34.0 % 34.0 %
State income tax expense, net of 5.0 5.0
Adjustment for prior year estimates
Effect of graduated federal tax rates (5.7 ) (7.4 )
Effective Tax Rate 33.3 % 31.6 % |
| Recent Accounting Pronouncements | The FASB issues ASUs to amend the authoritative
literature in Accounting Standards Certification (ASC). There have been a number of ASUs to date that amend the original text of
ASCs. Those ASUs issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable
to the Company or (iv) are not expected to have a significant impact on the Company. In May 2015, the FASB issued Accounting Standards
Update No. 2015-09, Revenue from Contracts with Customers (ASU 2015-09), which supersedes nearly all existing revenue recognition
guidance under U.S. GAAP. The core principle of ASU 2015-09 is to recognize revenues when promised goods or services are transferred
to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services.
ASU 2015-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required
within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods
beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective
approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients,
or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2015-09 recognized at the date of adoption
(which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2015-09
on our consolidated financial statements and have not yet determined the method by which we will adopt the standard as of May 1,
2018. |
