Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Jan. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Registrant Name | MICROWAVE FILTER CO INC /NY/ | |
Entity Central Index Key | 716688 | |
Current Fiscal Year End Date | -21 | |
Entity Common Stock, Shares Outstanding | 2,581,547 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Current Assets: | ||
Cash and cash equivalents | $1,004,705 | $1,081,567 |
Accounts receivable-trade, net of allowance for doubtful accounts of $4,000 and $4,000 | 361,537 | 377,473 |
Inventories, net | 467,082 | 473,839 |
Prepaid expenses and other current assets | 70,830 | 89,721 |
Total current assets | 1,904,154 | 2,022,600 |
Property, plant and equipment, net | 486,524 | 474,694 |
Total assets | 2,390,678 | 2,497,294 |
Current liabilities: | ||
Accounts payable | 73,747 | 73,293 |
Customer deposits | 27,212 | 32,431 |
Accrued payroll and related expenses | 55,084 | 50,234 |
Accrued compensated absences | 152,150 | 148,903 |
Notes payable - short term | 43,080 | 42,593 |
Other current liabilities | 27,662 | 31,954 |
Total current liabilities | 378,935 | 379,408 |
Notes payable - long term | 399,211 | 410,178 |
Total other liabilities | 399,211 | 410,178 |
Total liabilities | 778,146 | 789,586 |
Stockholders' Equity: | ||
Common stock, $.10 par value Authorized 5,000,000 shares, Issued 4,324,140 shares in 2015 and 2014, Outstanding 2,581,547 shares in 2015 and 2,583,507 in 2014 | 432,414 | 432,414 |
Additional paid-in capital | 3,248,706 | 3,248,706 |
Retained deficit | -374,919 | -280,893 |
Common stock in treasury, at cost 1,742,593 shares in 2015 and 1,740,633 shares in 2014 | -1,693,669 | -1,692,519 |
Total stockholders' equity | 1,612,532 | 1,707,708 |
Total liabilities and stockholders' equity | $2,390,678 | $2,497,294 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $4,000 | $4,000 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares, issued | 4,324,140 | 4,324,140 |
Common stock, shares, outstanding | 2,581,547 | 2,583,507 |
Treasury stock, shares | 1,742,593 | 1,740,633 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Consolidated Statements Of Operations [Abstract] | ||
Net sales | $849,927 | $655,447 |
Cost of goods sold | 539,813 | 456,913 |
Gross profit | 310,114 | 198,534 |
Selling, general and administrative expenses | 400,188 | 366,547 |
Loss from operations | -90,074 | -168,013 |
Other income (expense), net | -3,952 | -3,881 |
Loss before income taxes | -94,026 | -171,894 |
(Benefit) provision for income taxes | 0 | 0 |
Net loss | ($94,026) | ($171,894) |
Net Loss Per Common Share | ||
Basic and diluted loss per share | ($0.04) | ($0.07) |
Shares used in computing net loss per share: | ||
Weighted Average Common Shares Outstanding | 2,583,025 | 2,585,086 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||
Net loss | ($94,026) | ($171,894) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 26,769 | 32,702 |
Change in operating assets and liabilities: | ||
Accounts receivable-trade | 15,936 | 53,916 |
Federal and state income tax recoverable | 0 | 37,085 |
Inventories | 6,757 | 9,894 |
Prepaid expenses and other assets | 18,891 | -24,194 |
Accounts payable and customer deposits | -4,765 | 76,021 |
Accrued payroll and related expenses and compensated absences | 8,097 | 3,725 |
Other current liabilities | -4,292 | 475 |
Net cash (used in) provided by operating activities | -26,633 | 17,730 |
Cash flows from investing activities: | ||
Property, plant and equipment purchased | -38,599 | -2,361 |
Net cash used in investing activities | -38,599 | -2,361 |
Cash flows from financing activities: | ||
Repayment of note payable | -10,480 | -10,015 |
Purchase of treasury stock | -1,150 | 0 |
Net cash used in financing activities | -11,630 | -10,015 |
(Decrease) increase in cash and cash equivalents | -76,862 | 5,354 |
Cash and cash equivalents at beginning of period | 1,081,567 | 939,959 |
Cash and cash equivalents at end of period | 1,004,705 | 945,313 |
Supplemental Schedule of Cash Flow Information: | ||
Interest | $5,111 | $5,575 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the three month period ended December 31, 2014 are not necessarily indicative of the results that may be expected for the year ended September 30, 2015. For further information, refer to the condensed consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10K for the year ended September 30, 2014. | |
Industry_Segment_Data
Industry Segment Data | 3 Months Ended |
Dec. 31, 2014 | |
Industry Segment Data [Abstract] | |
Industry Segment Data | Note 2. Industry Segment Data |
The Company's primary business segment involves the operations of Microwave Filter Company, Inc. (MFC) which designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations. Markets served include cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial communications and defense electronics. | |
Inventories
Inventories | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories [Abstract] | ||||||||
Inventories | Note 3. Inventories | |||||||
Inventories are stated at the lower of cost determined on the first-in, first-out method or market. | ||||||||
Inventories net of reserve for obsolescence consisted of the following: | ||||||||
31-Dec-14 | 30-Sep-14 | |||||||
Raw materials and stock parts | $ | 352,764 | $ | 334,891 | ||||
Work-in-process | 32,221 | 46,292 | ||||||
Finished goods | 82,097 | 92,656 | ||||||
$ | 467,082 | $ | 473,839 | |||||
The Company's reserve for obsolescence equaled $413,447 at December 31, 2014 and September 30, 2014. The Company provides for a valuation reserve for certain inventory that is deemed to be obsolete, of excess quantity or otherwise impaired. | ||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2014 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4. Income Taxes |
The Company accounts for income taxes under FASB ASC 740-10. Deferred tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which are anticipated to be in effect when these differences reverse. The deferred tax provision is the result of the net change in the deferred tax assets and liabilities. A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts expected to be realized. The Company has provided a full valuation allowance against its deferred tax assets. | |
The Company adopted FASB ASC 740-10. FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax position taken or expected to be taken on a tax return. Additionally, it provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company determined it has no uncertain tax positions and therefore no amounts are recorded. | |
Legal_Matters
Legal Matters | 3 Months Ended |
Dec. 31, 2014 | |
Legal Matters [Abstract] | |
Legal Matters | Note 5. Legal Matters |
None. | |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 3 Months Ended |
Dec. 31, 2014 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | Note 6. Fair Value of Financial Instruments |
The carrying values of the Company cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments. | |
The Company currently does not trade in or utilize derivative financial instruments. | |
Significant_Customers
Significant Customers | 3 Months Ended |
Dec. 31, 2014 | |
Significant Customers [Abstract] | |
Significant Customers | |
Note 7. Significant Customers | |
Sales to one customer represented approximately 28% of total sales for the three months ended December 31, 2014 compared to approximately 10% of total sales for the three months ended December 31, 2013. This one customer has represented approximately 25%, 14% and 21% of total sales for the fiscal years ending September 30, 2014, 2013 and 2012, respectively. A loss of this customer or programs related to this customer could materially impact the Company. Management does anticipate future orders from this customer upon completion of a current contract. | |
Notes_Payable
Notes Payable | 3 Months Ended |
Dec. 31, 2014 | |
Notes Payable [Abstract] | |
Notes Payable | Note 8. Notes Payable |
On July 2, 2013, Microwave Filter Company, Inc. (the “Company”) entered into a Ten Year Term Loan with KeyBank National Association in the amount of Five Hundred Thousand and No/100 Dollars ($500,000.00). The amount of all advances outstanding together with accrued interest thereon shall be due and payable on July 2, 2023 (“Maturity”). The Company shall pay interest on the outstanding principal balance of this Note at the rate per annum equal to 4.5%. The net proceeds from the Term Loan will be available to provide working capital as needed. The total amount outstanding as of December 31, 2014 and 2013 was $442,291 and $483,453 respectively. Interest accrued as of December 31, 2014 and 2013 was $1,603 and $1,749 respectively. | |
The Company has secured this Note by: (a) a Mortgage, Assignment of Rents, Security Agreement and Fixture Filing which creates a 1st lien on real property situated in the Town of Dewitt, County of Onondaga, and State of New York and known as 6743 Kinne Street, East Syracuse, New York; (b) a General Assignment of Rents and Leases; (c) an Environmental Compliance and Indemnification; and (d) such other security as may now or hereafter be given to Lender as collateral for the loan. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9. Earnings Per Share |
The Company presents basic earnings per share (“EPS”), computed based on the weighted average number of common shares outstanding for the period, and when applicable diluted EPS, which gives the effect to all dilutive potential shares outstanding (i.e. options) during the period after restatement for any stock dividends. There were no dividends declared during the quarters ending December 31, 2014 and 2013. Income (loss) used in the EPS calculation is net income (loss) for each period. There were no dilutive potential shares outstanding for the periods ending December 31, 2014 and 2013. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 10. Recent Accounting Pronouncements |
None applicable. | |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories [Abstract] | ||||||||
Schedule Of Inventories Net Of Reserve For Obsolescence | ||||||||
31-Dec-14 | 30-Sep-14 | |||||||
Raw materials and stock parts | $ | 352,764 | $ | 334,891 | ||||
Work-in-process | 32,221 | 46,292 | ||||||
Finished goods | 82,097 | 92,656 | ||||||
$ | 467,082 | $ | 473,839 | |||||
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Inventories [Abstract] | ||
Raw materials and stock parts | $352,764 | $334,891 |
Work-in-process | 32,221 | 46,292 |
Finished goods | 82,097 | 92,656 |
Inventories, net | 467,082 | 473,839 |
Reserve for obsolescence | $413,447 | $413,447 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2014 |
Income Taxes [Abstract] | |
Uncertain tax positions | $0 |
Significant_Customers_Details
Significant Customers (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Significant Customers [Abstract] | |||||
Percentage of sales to one customer of total sales | 28.00% | 10.00% | 25.00% | 14.00% | 21.00% |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 02, 2013 | |
Line of Credit Facility [Line Items] | |||
Ten year term loan, maturity date | 2-Jul-23 | ||
Total amount outstanding | $442,291 | $483,453 | |
Interest accrued | 1,603 | 1,749 | |
KeyBank National Association [Member] | |||
Line of Credit Facility [Line Items] | |||
Loan term | 10 years | ||
Ten year term loan, amount | $500,000 | ||
Per annum interest rate | 4.50% |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ||
Dividends declared | $0 | $0 |
Dilutive potential shares outstanding | 0 | 0 |