Span America Medical Systems (SPAN) 10-Q 16 May 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Apr. 01, 2017	May 12, 2017
Document Information [Line Items]
Entity Registrant Name	SPAN AMERICA MEDICAL SYSTEMS INC
Entity Central Index Key	718,924
Trading Symbol	span
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		2,764,625
Document Type	10-Q
Document Period End Date	Apr. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Apr. 01, 2017	Oct. 01, 2016	[1]
Current assets:
Cash and cash equivalents	$ 7,273,691	$ 3,752,945
Accounts receivable, net of allowances of $125,000 (Apr. 1, 2017) and $140,000 (Oct. 1, 2016)	7,434,230	8,079,500
Inventories - Note 4	7,370,775	7,437,442
Deferred income taxes - Note 11		459,159
Prepaid expenses	1,482,097	879,108
Total current assets	23,560,793	20,608,154
Property and equipment, net - Note 5	4,058,844	4,116,070
Goodwill	3,909,945	3,937,676
Intangibles, net - Note 6	1,862,297	1,989,899
Other assets - Note 7	266,026	2,909,740
Deferred tax asset - Note 11	242,000
Total assets	33,899,905	33,561,539
Current liabilities:
Accounts payable	2,497,838	2,410,376
Accrued and sundry liabilities	2,436,472	3,583,457
Total current liabilities	4,934,310	5,993,833
Deferred tax liability - Note 11	48,873	266,715
Deferred compensation	245,174	289,394
Total long-term liabilities	294,047	556,109
Total liabilities	5,228,357	6,549,942
Commitments and contingencies - Note 14
Shareholders' equity:
Common stock, no par value, 20,000,000 shares authorized; issued and outstanding shares 2,755,625 (Apr. 1, 2017 and Oct. 1, 2016)	373,803	373,803
Additional paid-in capital	6,025	6,025
Retained earnings	30,928,313	29,133,746
Accumulated other comprehensive loss	(2,636,593)	(2,501,977)
Total shareholders' equity	28,671,548	27,011,597
Total liabilities and shareholders' equity	$ 33,899,905	$ 33,561,539
[1]	The Balance Sheet at October 1, 2016, has been derived from the audited financial statements at that date.

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Apr. 01, 2017	Oct. 01, 2016	[1]
Allowance for doubtful accounts	$ 125,000	$ 140,000
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	2,755,625	2,755,625
Common stock, outstanding (in shares)	2,755,625	2,755,625
[1]	The Balance Sheet at October 1, 2016, has been derived from the audited financial statements at that date.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Apr. 01, 2017	Apr. 02, 2016
Net sales	$ 15,225,876	$ 14,852,629	$ 30,448,505	$ 36,304,811
Cost of goods sold	9,365,049	9,661,793	19,021,175	25,630,674
Gross profit	5,860,827	5,190,836	11,427,330	10,674,137
Selling and marketing expenses	2,729,712	2,618,800	5,363,018	5,146,132
Research and development expenses	282,551	275,220	538,381	569,164
General and administrative expenses	1,445,499	1,136,626	2,731,626	2,242,196
Total operating expenses	4,457,762	4,030,646	8,633,025	7,957,492
Operating income	1,403,065	1,160,190	2,794,305	2,716,645
Non-operating income (expense):
Foreign currency (loss) gain	(7,066)	(49,917)	28,093	67,435
Interest expense		(60)		(5,144)
Gain from insurance policies	731,623		731,623
Other	12,853	(3,464)	11,346	(7,435)
Net non-operating income (expense)	737,410	(53,441)	771,062	54,856
Income before income taxes	2,140,475	1,106,749	3,565,367	2,771,501
Provision for income taxes	427,000	349,000	889,000	871,000
Net income	1,713,475	757,749	2,676,367	1,900,501
Other comprehensive income (loss), after tax:
Foreign currency translation gain (loss)	94,212	585,187	(134,616)	123,561
Comprehensive income	$ 1,807,687	$ 1,342,936	$ 2,541,751	$ 2,024,062
Net income per share:
Basic (in dollars per share)	$ 0.62	$ 0.28	$ 0.97	$ 0.70
Diluted (in dollars per share)	0.62	0.28	0.97	0.69
Dividends per common share (in dollars per share)	$ 0.16	$ 0.16	$ 0.32	$ 0.32
Weighted average shares outstanding:
Basic (in shares)	2,755,625	2,728,633	2,755,625	2,727,380
Diluted (in shares)	2,774,408	2,755,109	2,772,477	2,753,490

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Apr. 01, 2017		Apr. 02, 2016
Operating activities:
Net income	$ 2,676,367		$ 1,900,501
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	524,810		586,422
Provision for losses on accounts receivable	22,492
Loss on disposal of equipment	1,569		7,658
Increase in cash value of life insurance	(72,383)		(79,715)
Deferred compensation	(45,941)		(42,769)
Gain on life insurance proceeds	(731,623)
Changes in operating assets and liabilities:
Accounts receivable	600,057		1,342,115
Inventories	32,164		1,024,721
Prepaid expenses and other assets	(294,377)		(237,074)
Accounts payable and accrued expenses	(1,254,613)		(2,591,084)
Net cash provided by operating activities	1,458,522		1,910,775
Investing activities:
Purchases of property and equipment	(317,495)		(275,384)
Insurance proceeds	3,353,851
Payments for other assets	(69,483)		(57,067)
Net cash provided by (used for) investing activities	2,966,873		(332,451)
Financing activities:
Dividends paid	(881,800)		(873,590)
Proceeds of revolving credit line			2,900,000
Repayment of revolving credit line			(2,900,000)
Purchase and retirement of common stock			(209,880)
Net cash used for financing activities	(881,800)		(1,083,470)
Effect of exchange rates on cash	(22,849)		14,500
Increase in cash and cash equivalents	3,520,746		509,354
Cash and cash equivalents at beginning of period	3,752,945	[1]	1,224,026
Cash and cash equivalents at end of period	$ 7,273,691		$ 1,733,380
[1]	The Balance Sheet at October 1, 2016, has been derived from the audited financial statements at that date.

Note 1 - Significant Accounting

Note 1 - Significant Accounting Policies	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Significant Accounting Policies [Text Block]	1. Span-America Medical Systems, Inc. (the “Company,” “we,” or “Span-America”), located in Greenville, SC, has prepared the accompanying unaudited Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 10 six April 1, 2017 may September 30, 2017. 10 October 1, 2016. 4 11, 10 Our wholly-owned subsidiary, Span Medical Products Canada Inc. (“Span-Canada”), a British Columbia corporation, located in Beamsville, Ontario, Canada, is operated under the registered business name M.C. Healthcare Products (“M.C. Healthcare”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and Span-Canada, its wholly-owned subsidiary. Significant inter-entity accounts and transactions have been eliminated. Foreign Currency Translation Span-Canada uses the Canadian dollar as its functional currency. The assets and liabilities of Span-Canada are translated into U.S. dollars at the quarter-end exchange rate. Revenues and expenses are translated at weighted average exchange rates. The resulting translation adjustments are recorded as a separate component of shareholders’ equity in “Accumulated Other Comprehensive Loss.” Inventories Inventory is valued at the lower of cost (first first Revenue Recognition We recognize revenue when title and risk of loss pass to the customer and collection is reasonably assured. Our sales prices are fixed at the time revenue is recognized. Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) has issued a standard on revenue recognition. This standard provides a five first 2019. The FASB has issued ASU 2016 02, 842). 2016 02 twelve twelve 2016 02 December 15, 2018. 2016 02 The FASB has issued ASU 2016 13, 326): December 15, 2019, The FASB has issued ASU 2016 15, 230): December 15, 2017. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. Stock-Based Compensation We measure and recognize compensation expense for all stock-based payments at fair value. Stock-based payments include stock option grants. We grant options to purchase common stock to some of our employees under various plans at prices equal to the market value of the stock on the dates the options are granted. New shares of common stock are issued upon share option exercise. We do not have treasury stock. We have not made any stock option grants since fiscal year 2011.

Note 2 - Subsequent Event - Ten

Note 2 - Subsequent Event - Tender Offer for Span-America Medical Systems, Inc.by Savaria Corporation and Merger	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	2. SUBSEQUENT EVENT – TENDER OFFER FOR SPAN-AMERICA MEDICAL SYSTEMS, INC. BY SAVARIA CORPORATION AND MERGER We announced on May 1, 2017 tender $29 $80.2 tender second 2017. two thirds tender tender tender 15.9% tender tendered tender second

Note 3 - Fair Value of Financia

Note 3 - Fair Value of Financial Instruments	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	3 . FAIR VALUE OF FINANCIAL INSTRUMENTS The following table summarizes information on the fair value measurement of certain Company assets as of April 1, 2017 October 1, 2016 9 Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash value of life insurance policies: April 1, 2017 $ 149,206 -- $ 149,206 -- October 1, 2016 2,697,465 -- 2,697,465 --

Note 4 - Inventories

Note 4 - Inventories	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	4. April 1, October 1, 2017 2016 Raw materials $ 5,845,272 $ 5,476,393 Work in process 397,188 678,753 Finished goods 1,642,315 1,807,296 Reserve for obsolescence (514,000 ) (525,000 ) Inventories, net $ 7,370,775 $ 7,437,442 At the beginning of the second 2017, 2015 11, 330)" second 2017.

Note 5 - Property and Equipment

Note 5 - Property and Equipment	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	5 . PROPERTY AND EQUIPMENT April 1, October 1, 2017 2016 Land $ 469,718 $ 469,718 Land improvements 486,698 486,698 Buildings 7,018,079 7,003,652 Machinery and equipment 9,828,208 9,563,061 Furniture and fixtures 526,149 506,277 Construction in process 32,788 36,637 Automobiles 14,136 23,853 Property and equipment, cost 18,375,776 18,089,896 Less accumulated depreciation 14,316,932 13,973,826 Property and equipment, net $ 4,058,844 $ 4,116,070

Note 6 - Intangibles

Note 6 - Intangibles	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	6 . INTANGIBLES April 1, October 1, 2017 2016 Patents and trademarks $ 2,307,428 $ 2,268,402 Trade names 338,945 343,678 Non-competition agreements - 150,601 Customer relationships 2,491,438 2,526,230 Intangibles, cost 5,137,811 5,288,911 Less accumulated amortization (3,275,514 ) (3,299,012 ) Intangibles, net $ 1,862,297 $ 1,989,899 Changes in the balances shown for trade names and customer relationships result solely from foreign currency fluctuations. The last remaining non-competition agreement expired in November 2016.

Note 7 - Other Assets

Note 7 - Other Assets	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Other Assets Disclosure [Text Block]	7 . OTHER ASSETS April 1, October 1, 2017 2016 Cash value of life insurance policies - Note 3 $ 149,206 $ 2,697,465 Other 116,820 212,275 Other assets $ 266,026 $ 2,909,740 See Note 9

Note 8 - Product Warranties

Note 8 - Product Warranties	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	8 . PRODUCT WARRANTIES We offer warranties of various lengths to our customers, depending on the specific product sold. The warranties require us to repair or replace non-performing products during the warranty period at no cost to the customer. At the time revenue is recognized for products covered by warranties, we record a liability for estimated costs that may secondary Changes in our product warranty liability for the six April 1, 2017 April 2, 2016 Six Months Ended April 1, April 2, 2017 2016 Accrued liability at beginning of period $ 306,488 $ 291,980 Increase in reserve 83,629 144,857 Repairs and replacements (77,370 ) (122,763 ) Accrued liability at end of period $ 312,747 $ 314,074

Note 9 - Gain on Life Insurance

Note 9 - Gain on Life Insurance Policies	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Life Insurance, Corporate or Bank Owned [Text Block]	9. In February 2017, $3.4 1993 $113,561 three 1981 1993. $2.6 $732,000, $0.26 As of April 1, 2017, $357,000, See Notes 3 7 11

Note 10 - Revolving Credit Faci

Note 10 - Revolving Credit Facility	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	10. The credit facility includes financial covenants relating to tangible net worth and leverage ratios, and restricts mergers and acquisitions, assets sales, indebtedness, liens and capital expenditures without prior written consent of or waiver by the lending bank. No April 1, 2017.

Note 11 - Income Taxes

Note 11 - Income Taxes	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	11. At the beginning of the second 2017, 2015 17, 740)" Income tax expense differs from the amounts computed by applying the statutory U.S. federal tax rate to income before income taxes as a result of state income taxes, net of federal tax benefit, differences between U.S. and foreign tax rates, the domestic production deduction and the $732,000 9.

Note 12 - Earnings Per Share of

Note 12 - Earnings Per Share of Common Stock	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	12. EARNINGS PER SHARE OF COMMON STOCK The following table sets forth the computation of basic and diluted earnings per share of our common stock. Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 1,713,475 $ 757,749 $ 2,676,367 $ 1,900,501 Denominator: Denominator for basic earnings per share: Weighted average shares 2,755,625 2,728,633 2,755,625 2,727,380 Effect of dilutive securities: Employee stock options 18,783 26,476 16,852 26,110 Denominator for diluted earnings per share: Adjusted weighted average shares and assumed conversions 2,774,408 2,755,109 2,772,477 2,753,490 Net income per share: Basic $ 0.62 $ 0.28 $ 0.97 $ 0.70 Diluted $ 0.62 $ 0.28 $ 0.97 $ 0.69

Note 13 - Operations and Indust

Note 13 - Operations and Industry Segments	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	13 . OPERATIONS AND INDUSTRY SEGMENTS For management and reporting purposes, we divide our business into two The following table summarizes certain information on industry segments: Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 Net sales: Medical $ 12,927,831 $ 10,972,017 $ 25,445,982 $ 22,364,814 Custom products 2,298,045 3,880,612 5,002,523 13,939,997 $ 15,225,876 $ 14,852,629 $ 30,448,505 $ 36,304,811 Operating profit (loss): Medical $ 1,781,601 $ 1,229,251 $ 3,388,046 $ 2,731,102 Custom products (76,908 ) 154,420 (90,089 ) 359,220 1,704,693 1,383,671 3,297,957 3,090,322 Corporate expense (301,628 ) (223,481 ) (503,652 ) (373,677 ) Other income (expense) 737,410 (53,441 ) 771,062 54,856 Income before income taxes $ 2,140,475 $ 1,106,749 $ 3,565,367 $ 2,771,501 Total sales by industry segment include sales to unaffiliated customers as reported in our consolidated statements of comprehensive income. In calculating operating profit, non-allocable general corporate expenses, interest expense, other income and income taxes are not included, but certain corporate operating expenses incurred for the benefit of both segments are included on an allocated basis.

Note 14 - Commitments and Conti

Note 14 - Commitments and Contingencies	6 Months Ended
	Apr. 01, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	1 4 . COMMITMENTS AND CONTINGENCIES From time to time we are defendants in legal actions involving claims arising in the normal course of business. We believe that, as a result of legal defenses and insurance arrangements with parties we believe to be financially capable, none of these actions, if determined adversely, should have a material adverse effect on our operations or financial condition.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Apr. 01, 2017
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements include the accounts of the Company and Span-Canada, its wholly-owned subsidiary. Significant inter-entity accounts and transactions have been eliminated.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Translation Span-Canada uses the Canadian dollar as its functional currency. The assets and liabilities of Span-Canada are translated into U.S. dollars at the quarter-end exchange rate. Revenues and expenses are translated at weighted average exchange rates. The resulting translation adjustments are recorded as a separate component of shareholders’ equity in “Accumulated Other Comprehensive Loss.”
Inventory, Policy [Policy Text Block]	Inventories Inventory is valued at the lower of cost (first first
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition We recognize revenue when title and risk of loss pass to the customer and collection is reasonably assured. Our sales prices are fixed at the time revenue is recognized.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) has issued a standard on revenue recognition. This standard provides a five first 2019. The FASB has issued ASU 2016 02, 842). 2016 02 twelve twelve 2016 02 December 15, 2018. 2016 02 The FASB has issued ASU 2016 13, 326): December 15, 2019, The FASB has issued ASU 2016 15, 230): December 15, 2017. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation We measure and recognize compensation expense for all stock-based payments at fair value. Stock-based payments include stock option grants. We grant options to purchase common stock to some of our employees under various plans at prices equal to the market value of the stock on the dates the options are granted. New shares of common stock are issued upon share option exercise. We do not have treasury stock. We have not made any stock option grants since fiscal year 2011.

Note 3 - Fair Value of Financ21

Note 3 - Fair Value of Financial Instruments (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash value of life insurance policies: April 1, 2017 $ 149,206 -- $ 149,206 -- October 1, 2016 2,697,465 -- 2,697,465 --

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	April 1, October 1, 2017 2016 Raw materials $ 5,845,272 $ 5,476,393 Work in process 397,188 678,753 Finished goods 1,642,315 1,807,296 Reserve for obsolescence (514,000 ) (525,000 ) Inventories, net $ 7,370,775 $ 7,437,442

Note 5 - Property and Equipme23

Note 5 - Property and Equipment (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Property, Plant and Equipment [Table Text Block]	April 1, October 1, 2017 2016 Land $ 469,718 $ 469,718 Land improvements 486,698 486,698 Buildings 7,018,079 7,003,652 Machinery and equipment 9,828,208 9,563,061 Furniture and fixtures 526,149 506,277 Construction in process 32,788 36,637 Automobiles 14,136 23,853 Property and equipment, cost 18,375,776 18,089,896 Less accumulated depreciation 14,316,932 13,973,826 Property and equipment, net $ 4,058,844 $ 4,116,070

Note 6 - Intangibles (Tables)

Note 6 - Intangibles (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	April 1, October 1, 2017 2016 Patents and trademarks $ 2,307,428 $ 2,268,402 Trade names 338,945 343,678 Non-competition agreements - 150,601 Customer relationships 2,491,438 2,526,230 Intangibles, cost 5,137,811 5,288,911 Less accumulated amortization (3,275,514 ) (3,299,012 ) Intangibles, net $ 1,862,297 $ 1,989,899

Note 7 - Other Assets (Tables)

Note 7 - Other Assets (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Schedule of Other Assets, Noncurrent [Table Text Block]	April 1, October 1, 2017 2016 Cash value of life insurance policies - Note 3 $ 149,206 $ 2,697,465 Other 116,820 212,275 Other assets $ 266,026 $ 2,909,740

Note 8 - Product Warranties (Ta

Note 8 - Product Warranties (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Six Months Ended April 1, April 2, 2017 2016 Accrued liability at beginning of period $ 306,488 $ 291,980 Increase in reserve 83,629 144,857 Repairs and replacements (77,370 ) (122,763 ) Accrued liability at end of period $ 312,747 $ 314,074

Note 12 - Earnings Per Share 27

Note 12 - Earnings Per Share of Common Stock (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 1,713,475 $ 757,749 $ 2,676,367 $ 1,900,501 Denominator: Denominator for basic earnings per share: Weighted average shares 2,755,625 2,728,633 2,755,625 2,727,380 Effect of dilutive securities: Employee stock options 18,783 26,476 16,852 26,110 Denominator for diluted earnings per share: Adjusted weighted average shares and assumed conversions 2,774,408 2,755,109 2,772,477 2,753,490 Net income per share: Basic $ 0.62 $ 0.28 $ 0.97 $ 0.70 Diluted $ 0.62 $ 0.28 $ 0.97 $ 0.69

Note 13 - Operations and Indu28

Note 13 - Operations and Industry Segments (Tables)	6 Months Ended
	Apr. 01, 2017
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 Net sales: Medical $ 12,927,831 $ 10,972,017 $ 25,445,982 $ 22,364,814 Custom products 2,298,045 3,880,612 5,002,523 13,939,997 $ 15,225,876 $ 14,852,629 $ 30,448,505 $ 36,304,811 Operating profit (loss): Medical $ 1,781,601 $ 1,229,251 $ 3,388,046 $ 2,731,102 Custom products (76,908 ) 154,420 (90,089 ) 359,220 1,704,693 1,383,671 3,297,957 3,090,322 Corporate expense (301,628 ) (223,481 ) (503,652 ) (373,677 ) Other income (expense) 737,410 (53,441 ) 771,062 54,856 Income before income taxes $ 2,140,475 $ 1,106,749 $ 3,565,367 $ 2,771,501

Note 2 - Subsequent Event - T29

Note 2 - Subsequent Event - Tender Offer for Span-America Medical Systems, Inc.by Savaria Corporation and Merger (Details Textual) - Subsequent Event [Member] - Savaria Corporation [Member] $ / shares in Units, $ in Millions	May 01, 2017USD ($)$ / shares
All-cash Tender Offer, Per Share | $ / shares	$ 29
All-cash Tender Offer | $	$ 80.2
All-Cash Tender Offer, Closing Condition, Percentage of Shares Received From Shareholders	0.66%
All-Cash Tender Offer, Percentage of Outstanding Shares Tenderred by Directors and Officers	15.90%

Note 3 - Fair Value of Financ30

Note 3 - Fair Value of Financial Instruments - Fair Value Measurement of Assets (Details) - USD ($)	Apr. 01, 2017	Oct. 01, 2016
Cash value of life insurance policy	$ 149,206	$ 2,697,465
Fair Value, Inputs, Level 1 [Member]
Cash value of life insurance policy
Fair Value, Inputs, Level 2 [Member]
Cash value of life insurance policy	149,206	2,697,465
Fair Value, Inputs, Level 3 [Member]
Cash value of life insurance policy

Note 4 - Inventories - Componen

Note 4 - Inventories - Components of Inventories (Details) - USD ($)	Apr. 01, 2017	Oct. 01, 2016
Raw materials	$ 5,845,272	$ 5,476,393
Work in process	397,188	678,753
Finished goods	1,642,315	1,807,296
Reserve for obsolescence	(514,000)	(525,000)
Inventories, net	$ 7,370,775	$ 7,437,442	[1]
[1]	The Balance Sheet at October 1, 2016, has been derived from the audited financial statements at that date.

Note 5 - Property and Equipme32

Note 5 - Property and Equipment - Property and Equipment (Details) - USD ($)	Apr. 01, 2017	Oct. 01, 2016
Property, plant and equipment, gross	$ 18,375,776	$ 18,089,896
Less accumulated depreciation	14,316,932	13,973,826
Property and equipment, net	4,058,844	4,116,070	[1]
Land [Member]
Property, plant and equipment, gross	469,718	469,718
Land Improvements [Member]
Property, plant and equipment, gross	486,698	486,698
Building [Member]
Property, plant and equipment, gross	7,018,079	7,003,652
Machinery and Equipment [Member]
Property, plant and equipment, gross	9,828,208	9,563,061
Furniture and Fixtures [Member]
Property, plant and equipment, gross	526,149	506,277
Construction in Progress [Member]
Property, plant and equipment, gross	32,788	36,637
Automobiles [Member]
Property, plant and equipment, gross	$ 14,136	$ 23,853
[1]	The Balance Sheet at October 1, 2016, has been derived from the audited financial statements at that date.

Note 6 - Intangibles - Intangib

Note 6 - Intangibles - Intangibles (Details) - USD ($)	Apr. 01, 2017	Oct. 01, 2016
Intangible assets, gross	$ 5,137,811	$ 5,288,911
Less accumulated amortization	(3,275,514)	(3,299,012)
Intangibles, net	1,862,297	1,989,899
Patents and Trademarks [Member]
Intangible assets, gross	2,307,428	2,268,402
Trade Names [Member]
Intangible assets, gross	338,945	343,678
Noncompete Agreements [Member]
Intangible assets, gross		150,601
Customer Relationships [Member]
Intangible assets, gross	$ 2,491,438	$ 2,526,230

Note 7 - Other Assets - Other A

Note 7 - Other Assets - Other Assets (Details) - USD ($)	Apr. 01, 2017	Oct. 01, 2016
Cash value of life insurance policies - Note 3	$ 149,206	$ 2,697,465
Other	116,820	212,275
Other assets	$ 266,026	$ 2,909,740	[1]
[1]	The Balance Sheet at October 1, 2016, has been derived from the audited financial statements at that date.

Note 8 - Product Warranties - C

Note 8 - Product Warranties - Changes In Product Warranty Liability (Details) - USD ($)	6 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Accrued liability at beginning of period	$ 306,488	$ 291,980
Increase in reserve	83,629	144,857
Repairs and replacements	(77,370)	(122,763)
Accrued liability at end of period	$ 312,747	$ 314,074

Note 9 - Gain on Life Insuran36

Note 9 - Gain on Life Insurance Policies (Details Textual)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2017USD ($)	Apr. 01, 2017USD ($)	Apr. 02, 2016USD ($)	Apr. 01, 2017USD ($)	Apr. 02, 2016USD ($)	Jan. 31, 2017USD ($)	Oct. 01, 2016USD ($)
Proceeds from Life Insurance Policy				$ 3,353,851
Cash Surrender Value of Life Insurance		$ 149,206		149,206			$ 2,697,465
Gain (Loss) on Life Insurance Policies		731,623		731,623
Mr. Spann [Member]
Proceeds from Life Insurance Policy	$ 3,400,000
Gain (Loss) on Life Insurance Policies				$ 732,000
Gain (Loss) on Life Insurance Policies, Per Diluted Share after Tax				0.26
Mr. Spann [Member] | Other Assets [Member]
Cash Surrender Value of Life Insurance						$ 2,600,000
Founder and Former Chief Executive Officer and His Former Wife [Member]
Deferred Compensation Arrangement, Annual Payment				$ 113,561
Ms. Spann [Member] | Accrued and Sundry Liabilties and Deferred Compensation [Member]
Deferred Compensation Arrangement with Individual, Recorded Liability		$ 357,000		$ 357,000

Note 10 - Revolving Credit Fa37

Note 10 - Revolving Credit Facility (Details Textual) $ in Thousands	Apr. 01, 2017USD ($)
Revolving Credit Facility [Member]
Long-term Line of Credit	$ 0

Note 11 - Income Taxes (Details

Note 11 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Apr. 01, 2017	Apr. 02, 2016
Gain (Loss) on Life Insurance Policies	$ 731,623		$ 731,623

Note 12 - Earnings Per Share 39

Note 12 - Earnings Per Share of Common Stock - Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Apr. 01, 2017	Apr. 02, 2016
Numerator for basic and diluted earnings per share:
Net income	$ 1,713,475	$ 757,749	$ 2,676,367	$ 1,900,501
Denominator for basic earnings per share:
Weighted average shares (in shares)	2,755,625	2,728,633	2,755,625	2,727,380
Effect of dilutive securities:
Employee stock options (in shares)	18,783	26,476	16,852	26,110
Weighted average shares outstanding:
Adjusted weighted average shares and assumed conversions (in shares)	2,774,408	2,755,109	2,772,477	2,753,490
Net income per share:
Basic (in dollars per share)	$ 0.62	$ 0.28	$ 0.97	$ 0.70
Diluted (in dollars per share)	$ 0.62	$ 0.28	$ 0.97	$ 0.69

Note 13 - Operations and Indu40

Note 13 - Operations and Industry Segments (Details Textual)	6 Months Ended
	Apr. 01, 2017
Number of Reportable Segments	2

Note 13 - Operations and Indu41

Note 13 - Operations and Industry Segments - Information On Industry Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Apr. 01, 2017	Apr. 02, 2016
Operating profit	$ 1,403,065	$ 1,160,190	$ 2,794,305	$ 2,716,645
Corporate expense	4,457,762	4,030,646	8,633,025	7,957,492
Other income (expense)	737,410	(53,441)	771,062	54,856
Income before income taxes	2,140,475	1,106,749	3,565,367	2,771,501
Operating Segments [Member]
Net sales	15,225,876	14,852,629	30,448,505	36,304,811
Operating profit	1,704,693	1,383,671	3,297,957	3,090,322
Corporate, Non-Segment [Member]
Corporate expense	(301,628)	(223,481)	(503,652)	(373,677)
Medical [Member] | Operating Segments [Member]
Net sales	12,927,831	10,972,017	25,445,982	22,364,814
Operating profit	1,781,601	1,229,251	3,388,046	2,731,102
Custom Products [Member] | Operating Segments [Member]
Net sales	2,298,045	3,880,612	5,002,523	13,939,997
Operating profit	$ (76,908)	$ 154,420	$ (90,089)	$ 359,220