Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 31, 2018 | Sep. 11, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | sgma | |
Entity Registrant Name | SIGMATRON INTERNATIONAL INC | |
Entity Central Index Key | 915,358 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,230,008 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,805,098 | $ 1,721,599 |
Accounts receivable, less allowance for doubtful accounts of $300,000 at July 31, 2018 and April 30, 2018, respectively | 31,161,032 | 26,638,367 |
Inventories, net | 88,012,795 | 86,929,793 |
Prepaid expenses and other assets | 1,837,615 | 1,948,748 |
Refundable and prepaid income taxes | 1,741,676 | 1,655,409 |
Other receivables | 1,150,473 | 1,135,810 |
Total current assets | 125,708,689 | 120,029,726 |
Property, machinery and equipment, net | 34,705,443 | 35,288,997 |
Intangible assets, net of amortization of $4,938,020 and $4,843,915 at July 31, 2018 and April 30, 2018, respectively | 2,993,980 | 3,088,085 |
Deferred income taxes | 1,360,839 | 1,109,681 |
Other assets | 1,613,703 | 1,713,481 |
Total other long-term assets | 5,968,522 | 5,911,247 |
Total assets | 166,382,654 | 161,229,970 |
Current liabilities: | ||
Trade accounts payable | 50,749,140 | 49,326,402 |
Accrued wages | 3,896,540 | 3,730,755 |
Accrued expenses | 2,878,882 | 2,930,792 |
Current portion of long-term debt | 691,701 | 655,190 |
Current portion of capital lease obligations | 2,292,211 | 2,320,538 |
Current portion of contingent consideration | 175,914 | 213,460 |
Current portion of deferred rent | 171,155 | 201,349 |
Total current liabilities | 60,855,543 | 59,378,486 |
Long-term debt, less current portion | 41,697,840 | 36,783,879 |
Income taxes payable | 454,719 | 498,000 |
Capital lease obligations, less current portion | 3,660,083 | 4,297,846 |
Deferred rent, less current portion | 293,203 | 331,251 |
Other long-term liabilities | 1,137,922 | 1,130,557 |
Total long-term liabilities | 47,243,767 | 43,041,533 |
Total liabilities | 108,099,310 | 102,420,019 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; 500,000 shares authorized, none issued or outstanding | ||
Common stock, $.01 par value; 12,000,000 shares authorized, 4,230,008 and 4,215,258 shares issued and outstanding at July 31, 2018 and April 30, 2018, respectively | 41,896 | 41,896 |
Capital in excess of par value | 23,132,017 | 23,132,017 |
Retained earnings | 35,109,431 | 35,636,038 |
Total stockholders' equity | 58,283,344 | 58,809,951 |
Total liabilities and stockholders' equity | $ 166,382,654 | $ 161,229,970 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 300,000 | $ 300,000 |
Intangible assets, amortization | $ 4,938,020 | $ 4,843,915 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 4,230,008 | 4,215,258 |
Common stock, shares outstanding | 4,230,008 | 4,215,258 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Condensed Consolidated Statements Of Operations [Abstract] | ||
Net sales | $ 71,414,057 | $ 71,224,293 |
Cost of products sold | 65,625,001 | 64,467,239 |
Gross profit | 5,789,056 | 6,757,054 |
Selling and administrative expenses | 5,934,116 | 5,912,146 |
Operating (loss) income | (145,060) | 844,908 |
Other expense (income) | 25,063 | (44,351) |
Interest expense | 553,490 | 308,414 |
(Loss) income before income tax (benefit) expense | (723,613) | 580,845 |
Income tax (benefit) expense | (197,006) | 197,963 |
Net (loss) income | $ (526,607) | $ 382,882 |
(Loss) earnings per share - basic | $ (0.12) | $ 0.09 |
(Loss) earnings per share - diluted | $ (0.12) | $ 0.09 |
Weighted average shares of common stock outstanding - Basic | 4,223,657 | 4,195,985 |
Weighted average shares of common stock outstanding - Diluted | 4,223,657 | 4,269,501 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Cash flows from operating activities | ||
Net (loss) income | $ (526,607) | $ 382,882 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,267,528 | 1,275,044 |
Stock-based compensation | 83,659 | |
Deferred income tax (benefit) expense | (251,158) | 2,551 |
Amortization of intangible assets | 94,105 | 112,591 |
Amortization of financing fees | 20,704 | 12,000 |
Fair value adjustment of contingent consideration | 17,529 | 16,493 |
Loss from disposal or sale of machinery and equipment | 34 | 64 |
Changes in assets and liabilities | ||
Accounts receivable | (4,522,665) | 617,756 |
Inventories | (1,083,002) | (7,723,449) |
Prepaid expenses and other assets | 263,923 | 1,309,174 |
Refundable and prepaid income taxes | (86,267) | (193,233) |
Income taxes payable | (43,281) | 198,749 |
Trade accounts payable | 1,422,738 | 5,755,665 |
Deferred rent | (68,242) | (58,959) |
Accrued expenses and wages | 53,565 | (1,391,718) |
Net cash (used in) provided by operating activities | (3,441,096) | 399,269 |
Cash flows from investing activities | ||
Purchases of machinery and equipment | (706,808) | (3,823,955) |
Net cash used in investing activities | (706,808) | (3,823,955) |
Cash flows from financing activities | ||
Proceeds from the exercise of common stock options | 25,542 | |
Proceeds under equipment notes | 182,557 | 636,100 |
Payments of contingent consideration | (55,075) | (45,875) |
Payments under capital lease and sale leaseback agreements | (643,290) | (442,472) |
Payments under equipment notes | (93,798) | (46,640) |
Payments under building notes payable | (70,000) | (41,250) |
Borrowings under lines of credit | 5,100,005 | 2,676,851 |
Payments under lines of credit | (177,896) | (858,971) |
Payments of financing fees | (11,100) | (14,631) |
Net cash provided by financing activities | 4,231,403 | 1,888,654 |
Change in cash and cash equivalents | 83,499 | (1,536,032) |
Cash and cash equivalents at beginning of period | 1,721,599 | 3,493,324 |
Cash and cash equivalents at end of period | 1,805,098 | 1,957,292 |
Supplementary disclosures of cash flow information | ||
Cash paid for interest | 504,897 | 285,391 |
Cash paid for income taxes | 160,239 | 166,810 |
Purchase of machinery and equipment financed under capital leases | 653,034 | |
Financing of insurance policy | $ 67,675 | $ 81,315 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Jul. 31, 2018 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note A - Basis of Presentation The accompanying unaudited condensed consolidated financial statements of SigmaTron International, Inc. (“SigmaTron”), SigmaTron’s wholly-owned subsidiaries Standard Components de Mexico S.A., AbleMex, S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd. and wholly-owned foreign enterprises Wujiang SigmaTron Electronics Co., Ltd. and SigmaTron Electronic Technology Co., Ltd. (“SigmaTron China”) and international procurement office SigmaTron Taiwan branch (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three month period ended July 31, 2018 is not necessarily indicative of the results that may be expected for the year ending April 30, 2019. For further information, refer to the condensed consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended April 30, 2018. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Jul. 31, 2018 | |
Inventories, Net [Abstract] | |
Inventories, Net | Note B - Inventories, net The components of inventory consist of the following: July 31, April 30, 2018 2018 Finished products $ 22,242,349 $ 20,404,849 Work-in-process 2,744,046 2,075,465 Raw materials 64,229,332 65,652,411 89,215,727 88,132,725 Less excess and obsolescence reserve (1,202,932) (1,202,932) $ 88,012,795 $ 86,929,793 |
Earnings Per Share And Stockhol
Earnings Per Share And Stockholders' Equity | 3 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share And Stockholders' Equity [Abstract] | |
Earnings Per Share And Stockholders' Equity | Note C - Earnings Per Share and Stockholders’ Equity The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended July 31, 2018 2017 Net (loss) income $ (526,607) $ 382,882 Weighted-average shares Basic 4,223,657 4,195,985 Effect of dilutive stock options - 73,516 Diluted 4,223,657 4,269,501 Basic earnings per share $ (0.12) $ 0.09 Diluted earnings per share $ (0.12) $ 0.09 Options to purchase 347,318 and 362, 803 shares of common stock were outstanding at July 31, 2018 and 2017, respectively. There were no options granted during the three month periods ended July 31, 2018 and 2017, respectively. The Company recognized $ 0 and $83, 659 in stock option expense for the three month periods ended July 31, 2018 and 2017, respectively. The balance of unrecognized compensation expense related to the Company’s stock option plans was $0 at July 31, 2018 and 2017. There were no anti-dilutive common stock equivalents outstanding during the three month period ended July 31, 2018 or three month period ended July 3 1, 2017. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Jul. 31, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note D - Long-term Debt Notes Payable – Banks On March 31, 2017, the Company entered into a $35,000,000 senior secured credit facility with U.S. Bank, which expires on March 31, 2022 . The credit facility is collateralized by substantially all of the Company’s domestically located assets. The facility allows the Company to choose among interest rates at which it may borrow funds: the bank fixed rate of five percent or LIBOR plus one and one half percent (effectively 3.83% at July 31, 2018). Interest is due monthly. Under the senior secured credit facility, the Company may borrow up to the lesser of (i) $35,000,000 or (ii) an amount equal to a percentage of the eligible receivable borrowing base plus a percentage of the eligible inventory borrowing base (the “Borrowing Base”). On July 16, 2018, the Company and U.S. Bank entered into an amendment of the revolving credit facility. The amended revolving credit facility allows the Company to borrow up to the lesser of (i) $45,000,000 less reserves or (ii) 90% of the Company’s Borrowing Base, except that the 90% limitation will expire if the Company’s actual revolving loans for the first 90 days after the amendment’s effective date are less than 80% of the Company’s Borrowing Base and the Company maintains a Fixed Charge Coverage Ratio of 1.2 to 1.0 for four consecutive quarters. The amendment also imposes sublimits on categories of inventory equal to $17,500,000 on raw materials and $25,000,000 on finished goods. As of July 31, 2018, there was $34,201,740 outstanding and $ 5 , 503 , 206 of unused availability under the U.S. Bank facility compared to an outstanding balance of $29,279,631 and $5,720,369 of unused availability at April 30, 2018. At July 31, 2018, the Company was in compliance with its financial covenant and other restricted covenants under the credit facility. Deferred financing costs of $11,100 were capitalized during the three month period ending July 31, 2018 which are amortized over the term of the agreement. As of July 31, 2018 and April 30, 2018 the unamortized amount offset against outstanding debt was $191,068 and $192,502 , respectively. On February 12, 2018, the Company’s wholly-owned subsidiary, SigmaTron Electronic Technology Co., Ltd., entered into a credit facility with China Construction Bank. Under the agreement SigmaTron Electronic Technology Co., Ltd. can borrow up to 5,000,000 Renminbi and the facility is collateralized by Wujiang SigmaTron Electronics Co., Ltd.’s manufacturing building. Interest is payable monthly and the facility bears a fixed interest rate of 6.09% . The term of the facility extends to February 7, 2019 . There was no outstanding balance under the facility at July 31, 2018 and April 30, 2018. Notes Payable – Buildings The Company entered into a mortgage agreement on December 21, 2017, in the amount of $5,200,000 , with U.S. Bank to refinance the property that serves as the Company’s corporate headquarters and its Illinois manufacturing facility. The note requires the Company to pay monthly principal payments in the amount of $17,333 , bears interest at a fixed rate of 4.0% per year and is payable over a fifty-one month period. Deferred financing costs of $74,066 were capitalized in fiscal year 2018 which are amortized over the term of the agreement. As of July 31, 2018, the unamortized amount offset against outstanding debt was $62,671 . A final payment of approximately $4,347,778 is due on or before March 31, 2022 . The outstanding balance was $5,096,000 and $5,148,000 at July 31, 2018 and April 30, 2018, respectively. Note D - Long-term Debt - Continued The Company entered into a mortgage agreement on December 21, 2017, in the amount of $1,800,000 , with U.S. Bank to refinance the property that serves as the Company’s engineering and design center in Elgin, Illinois. The note requires the Company to pay monthly principal payments in the amount of $6,000 , bears interest at a fixed rate of 4.0% per year and is payable over a fifty-one month period. Deferred financing costs of $65,381 were capitalized in the fiscal year 2018 which are amortized over the term of the agreement. As of July 31, 2018 the unamortized amount offset against outstanding debt was $55,322 . A final payment of approximately $1,505,000 is due on or before March 31, 2022 . The outstanding balance was $1,764,000 and $1,782,000 at July 31, 2018 and April 30, 2018, respectively. Notes Payable – Equipment On November 1, 2016, the Company entered into a secured note agreement with Engencap Fin S.A. DE C.V. to finance the purchase of equipment in the amount of $596,987 . The term of the agreement extends to November 1, 2021 with average quarterly payments of $35,060 beginning on February 1, 2017 and a fixed interest rate of 6.65% . The balance outstanding under this note agreement was $417,891 and $447,741 at July 31, 2018 and April 30, 2018, respectively. On February 1, 2017, the Company entered into a secured note agreement with Engencap Fin S.A. DE C.V. to finance the purchase of equipment in the amount of $335,825 . The term of the agreement extends to February 1, 2022 with average quarterly payments of $20,031 beginning on May 1, 2017 and a fixed interest rate of 7.35% . The balance outstanding under this note agreement was $251,869 and $268,660 at July 31, 2018 and April 30, 2018, respectively. On June 1, 2017, the Company entered into a secured note agreement with Engencap Fin S.A. DE C.V. to finance the purchase of equipment in the amount of $636,100 . The term of the agreement extends to June 1, 2022 with average quarterly payments of $37,941 beginning on September 1, 2017 and a fixed interest rate of 7.35% . The balance outstanding under this note agreement was $508,880 and $540,685 at July 31, 2018 and April 30, 2018, respectively. On October 1, 2017, the Company entered into a secured note agreement with Engencap Fin S.A. DE C.V. to finance the purchase of equipment in the amount of $307,036 . The term of the agreement extends to November 1, 2022 with average quarterly payments of $18,314 beginning on February 1, 2018 and a fixed interest rate of 7.35% . The balance outstanding under this note agreement was $276,332 and $291,684 at July 31, 2018 and April 30, 2018, respectively. On May 1, 2018, the Company entered into a secured note agreement with Engencap Fin S.A. DE C.V. to finance the purchase of equipment in the amount of $182,557 . The term of the agreement extends to May 1, 2023 with average quarterly payments of $11,045 beginning on August 1, 2018 and a fixed interest rate of 8.00% . The balance outstanding under this note agreement was $182,557 at July 31, 2018. Capital Lease and Sales Leaseback Obligations From October 2013 through June 2017, the Company entered into various capital lease and sales leaseback agreements with Associated Bank, National Association to purchase equipment totaling Note D - Long-term Debt - Continued $6,893,596 . The terms of the lease agreements extend to September 2018 through May 2022 with monthly installment payments ranging from $1,455 to $40,173 and a fixed interest rate ranging from 3.75% to 4.90% . The balance outstanding under these capital lease agreements was $2,573,702 and $2,923,524 at July 31, 2018 and April 30, 2018, respectively. The net book value of the equipment under these leases was $4,657,943 and $4,799,827 at July 31, 2018 and April 30, 2018, respectively. From April 2014 through July 2015, the Company entered into various capital lease agreements with CIT Finance LLC to purchase equipment totaling $2,512,051 . The terms of the lease agreements extend to March 2019 through July 2020 with monthly installment payments ranging from $1,931 to $12,764 and a fixed interest rate ranging from 5.65% through 6.50% . The balance outstanding under these capital lease agreements was $863,655 and $984,031 at July 31, 2018 and April 30, 2018, respectively. The net book value of the equipment under these leases was $1,684,353 and $1,736,688 at July 31, 2018 and April 30, 2018, respectively. From September 2017 through April 2018, the Company entered into various capital lease and sales leaseback agreements with First American Equipment Finance to purchase equipment totaling $3,011,387 . The terms of the lease agreements extend to August 2021 through April 2022 with monthly installment payments ranging from $6,716 to $20,093 and a fixed interest rate ranging from 5.82% through 7.23% . The balance outstanding under these capital lease agreements was $2,514,937 and $2,688,029 at July 31, 2018 and April 30, 2018, respectively. The net book value of the equipment under these leases was $2,742,439 and $2,808,209 at July 31, 2018 and April 30, 2018, respectively. The Company anticipates that its credit facilities, cash flow from operations and leasing resources are adequate to meet its working capital requirements and capital expenditures for fiscal year 2019. In addition, in the event the Company desires to expand its operations, its business grows more rapidly than expected, the current economic climate deteriorates, customers delay payments, or the Company desires to consummate an acquisition, additional financing resources may be necessary in the current or future fiscal years. There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all, in the future. There is no assurance that the Company will be able to retain or renew its credit agreements in the future, or that any retention or renewal will be on the same terms as currently exist. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jul. 31, 2018 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note E - Intangible Assets Intangible assets subject to amortization are summarized as of July 31, 2018 as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 8.83 4,690,000 1,701,990 Backlog - 22,000 22,000 Non-compete agreements 0.83 50,000 44,030 Patents - 400,000 400,000 Total $ 7,932,000 $ 4,938,020 Intangible assets subject to amortization are summarized as of April 30, 2018, as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 9.08 4,690,000 1,609,670 Backlog - 22,000 22,000 Non-compete agreements 1.08 50,000 42,245 Patents - 400,000 400,000 Total $ 7,932,000 $ 4,843,915 Note E - Intangible Assets - Continued Estimated aggregate amortization expense for intangible assets, which becomes fully amortized in 2027 , for the remaining periods is as follows: For the remaining 9 months of the fiscal year ending April 30: 2019 $ 280,620 For the fiscal years ending April 30: 2020 362,410 2021 354,203 2022 346,582 2023 339,128 Thereafter 1,311,037 $ 2,993,980 Amortization expense was $94,105 and $112,591 for the three months ended July 31, 2018 and 2017, respectively. In conjunction with the May 2012 acquisition of Spitfire, an estimate of the fair value of the contingent consideration, $2,320,000 , was recorded based on expected operating results through fiscal 2019 and the specific terms of when such consideration would be earned. Those terms provide for additional consideration to be paid based on a percentage of sales and pre-tax profits over those years in excess of certain minimums. Payments are made quarterly each year and adjusted after each year-end audit. The Company increased the estimated remaining payments expected to be paid under the agreement, which resulted in an increase of $17,529 for the three month period ended July 31, 2018. Any change in the Company’s estimate is reflected as a change in the contingent consideration liability and as additional charges or credits to selling and administrative expenses. The Company made a payment of $55,075 and $45,875 as of July 31, 2018 and 2017, respectively. As of July 31, 2018, the contingent consideration liability was $175,914 compared to $213,460 at April 30, 2018. |
Income Tax
Income Tax | 3 Months Ended |
Jul. 31, 2018 | |
Income Tax [Abstract] | |
Income Tax | Note F - Income Tax The income tax benefit was $197,006 for the three month period ended July 31, 2018 compared to an income tax expense of $197,963 for the same period in the prior fiscal year. The decrease in income tax expense for the three month period ended July 31, 2018 compared to the same period in the previous year is the result of a pretax loss during the three month period ended July 31, 2018 compared to pretax income recognized during the three month period ended July 31, 2017. The Company’s effective tax rate was 27.22% and 34.08% for the quarters ended July 31, 2018 and 2017, respectively. The effective tax rate for the quarter ended July 31, 2018 is lower than the quarter ended July 31, 2017 due to less income recognized in high tax rate jurisdictions for the period ended July 31, 2018. On December 22, 2017, the U.S. enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 34% to 21% and imposing a mandatory one-time transition tax on earnings of certain foreign subsidiaries that were previously tax-deferred. Due to the Tax Act, the Company’s federal statutory income tax rate for the current fiscal year is approximately 21.0%. Note F - Income Tax - Continued Due to the enactment of the Tax Act, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Because of the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company has made reasonable estimates for certain effects of the Tax Act and recorded provisional amounts in its financial statements as of July 31, 2018. As the Company collects and prepares necessary calculations of cumulative earnings and profits, cumulative taxes and amounts held in cash or other specified assets, as well as interprets the Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, the Company may make adjustments to the provisional amounts. Those adjustments may materially impact its provision for income taxes and effective tax rate in the period in which the adjustments are made. The Company expects to complete its accounting for the tax effects of the Tax Act in fiscal year 2019. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Jul. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note G - Commitments and Contingencies From time to time the Company is involved in legal proceedings, claims or investigations that are incidental to the conduct of the Company’s business. In future periods, the Company could be subjected to cash cost or non-cash charges to earnings if any of these matters are resolved on unfavorable terms. However, although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including management’s assessment of the merits of any particular claim, the Company does not expect that these legal proceedings or claims will have any material adverse impact on its future consolidated financial position, results of operations or cash flows. |
Critical Accounting Policies
Critical Accounting Policies | 3 Months Ended |
Jul. 31, 2018 | |
Critical Accounting Policies [Abstract] | |
Critical Accounting Policies | Note H - Critical Accounting Policies Management Estimates and Uncertainties - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory, lower of cost or market adjustment for inventory, contingent consideration, deferred taxes, uncertain tax positions, valuation allowance for deferred taxes and valuation of long-lived assets. Actual results could materially differ from these estimates. Note H - Critical Accounting Policies - Continued Revenue Recognition – The Company recognizes revenue when control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s primary performance obligation to its customers is the production of finished goods electronic assembly products pursuant to purchase orders. The Company has concluded that control of the products it sells transfers to its customers and an enforceable right to receive payment is customarily established at the point in time when the finished goods are shipped to its customers, or in some cases delivery pursuant to the specified shipping terms of each customer arrangement. With respect to consignment arrangements, control transfers and revenue is recognized at the point in time when the goods are shipped to the customer from the consignment location or when delivered to the customer (pursuant to agreed upon shipping terms). In those limited instances where finished goods delivered to the customer location are stored in a segregated area which are not controlled by the customer (title transfer, etc.) until they are pulled from the segregated area and consumed by the Company’s customer, revenue is recognized upon consumption. For tooling services, the Company’s performance obligation is satisfied at the point in time when the customer takes possession of dies and/ or molds. For engineering, design, and testing services, the Company’s performance obligations are satisfied over time as the respective services are rendered as its customers simultaneously derive value from the Company’s performance. From the time that a customer purchase order is received and contract is established, the Company’s performance obligations are typically fulfilled within a few weeks. The Company does not have any performance obligations that require more than one year to fulfill. Each customer purchase order sets forth the transaction price for the products and services purchased under that arrangement. The Company evaluates the credit worthiness of its customers and exercises judgment to recognize revenue based upon the amount the Company expects to be paid for each sales transaction it enters into with its customers. Some customer arrangements include variable consideration, such as volume rebates, some of which depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date. The Company’s typical payment terms are 30 days and its sales arrangements do not contain any significant financing component for its customers. The Company’s customer arrangements do not generate contract assets or liabilities that are material to the consolidated financial statements. The Company generally provides a warranty for workmanship, unless the assembly was designed by the Company, in which case it warrants assembly/design. The Company assembles and tests assemblies based on customers’ specifications prior to shipment. Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties. The Company utilized the practical expedient to treat shipping and handling activities after the customer obtains control as fulfillment activities. The Company records shipping and handling costs as selling and administrative expenses and costs are accrued when revenue is recognized. Customers are typically invoiced for shipping costs and such amounts are included in net sales. The Company pays sales commissions to its sales representatives which may be considered as incremental costs to obtain a contract. However, since the recoverability period is less than one year, the Note H - Critical Accounting Policies - Continued Company utilized the practical expedient provided by the new revenue recognition accounting standard that allows an entity to expense the costs of obtaining a contract as incurred. During the first quarter of fiscal 2019, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods and no amounts were allocated to performance obligations that remain unsatisfied or partially unsatisfied at July 31, 2018. The following table presents the Company’s revenue disaggregated by the principal end-user markets it serves: Three Months Ended July 31, Net trade sales by end-market 2018 Industrial Electronics 38,135,102 Consumer Electronics 29,200,913 Medical / Life Sciences 4,078,042 Total Net Trade Sales 71,414,057 Inventories - Inventories are valued at cost. Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods. In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or net realizable value. The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory. The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss. The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions. For convenience, the Company records these inventory reserves against the inventory cost through a contra asset rather than through a new cost basis. Upon a subsequent sale or disposal of the impaired inventory, the corresponding reserve is relieved to ensure the cost basis of the inventory reflects any reductions. Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold as the inventory is sold or otherwise relieved. Intangible Assets - Intangible assets are comprised of finite life intangible assets including patents, trade names, backlog, non-compete agreements, and customer relationships. Finite life intangible assets are amortized on a straight line basis over their estimated useful lives of 5 years for patents, 20 years for trade names, 1 year for backlog and 7 years for non-compete agreements except for customer relationships which are amortized on an accelerated basis over their estimated useful life of 15 years. Impairment of Long-Lived Assets - The Company reviews long-lived assets, including amortizable intangible assets, for impairment. Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment. If events or changes in circumstances occur that indicate possible impairment, the Company first performs an impairment review based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities. This analysis requires management judgment with respect to changes in technology, the Note H - Critical Accounting Policies - Continued continued success of product lines, and future volume, revenue and expense growth rates. If the carrying value exceeds the undiscounted cash flows, the Company records an impairment for the difference between the estimated fair value of the asset group and its carrying value. The Company further conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment. As a result of the analysis performed in the fourth quarter of fiscal 2018, the Company determined that the carrying value of the trade name intangible asset was not recoverable and recorded a fourth quarter charge of $690,107 for the entire carrying amount. The Company’s analysis did not indicate that any of its other long-lived assets were impaired. As of July 31, 2018, there were no indicators of possible impairment of long-lived assets. Income Tax - The Company’s income tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and several foreign jurisdictions. Significant judgments and estimates by management are required in determining the consolidated income tax expense assessment. Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. In evaluating the Company’s ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, the Company begins with historical results and changes in accounting policies, and incorporates assumptions including the amount of future state, federal and foreign pre-tax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment and estimates by management about the forecasts of future taxable income and are consistent with the plans and estimates the Company uses to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating income and/or loss. Valuation allowances are established when necessary to reduce deferred income tax assets to an amount more likely than not to be realized. The Company established a valuation allowance of $78,100 related to its foreign tax credit carry-forward at April 30, 2017. The Company did not change the previous valuation allowance or establish any new valuation allowances at April 30, 2018 or July 31, 2018. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across its global operations. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Except as noted below, management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. A tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Note H - Critical Accounting Policies - Continued The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. New Accounting Standards: In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) which supersedes the revenue recognition requirements in ASC 605, “ Revenue Recognition” . The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer, and replaces most existing revenue recognition guidance in U.S. GAAP. The Company adopted the ASU on May 1, 2018 using the modified retrospective transition method. Under the modified retrospective transition method, the cumulative effect of applying ASC 606 to all contracts that are not completed as of the date of adoption is recorded as an adjustment to the opening balance of retained earnings (if applicable) while the comparative periods are not restated and continue to be reported under the accounting standards in effect for those periods. The Company has determined that revenue from contracts with customers under the new revenue recognition standard is the same as under prior accounting standards. Accordingly, the Company did not record an adjustment to the beginning balance of retained earnings as a result of adopting ASC 606. In February 2016, the FASB issued ASU No. 2016-02, “ Leases” . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for capital leases and operating leases existing at, or entered into as of the effective date of the standard, with certain practical expedients available. While the Company is still evaluating the impact of its pending adoption of the new standard on its consolidated financial statements, the Company expects that upon adoption in the fiscal year ending April 30, 2020, it will recognize ROU assets and lease liabilities and the amounts could be material. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Company is currently evaluating the new guidance and has not determined the impact this ASU may have on its consolidated financial statements. Note H - Critical Accounting Policies – Continued On May 1, 2018, the Company adopted the guidance contained in ASU 2016 -15 , “ Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments ” . The amendments in ASU 2015-16 are applied using a retrospective transition method to each period presented. The Company has evaluated each of the eight specific issues addressed by ASU 2016-15. During the year ended April 30, 2018 the Company received cash settlement of insurance claims related to equipment damaged by a fire at one of its subsidiaries. The estimated settlement was recorded in April 2017 when the settlement was deemed to be probable. Cash payments related to this settlement were received in September 2017, November 2017 and January 2018. The Company has classified these receipts as cash flows from operating activities in its annual and interim statements of cash flows for the year ended April 30, 2018. The Company is not required to restate its statement of cash flow for the three-month period ended July 31, 2017 as the Company did not receive any cash. The Company will be required to reclassify the cash receipts related to this insurance settlement from cash flows from operations to cash flows from investing activities in its statements of cash flows for the six month, nine month and annual periods of the fiscal year ended April 30, 2018. In January 2018, the FASB released guidance on the accounting for tax on the Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company elects to treat any potential GILTI inclusions as a period cost. In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The guidance permits entities to reclassify tax effects stranded in Accumulated Other Comprehensive Income as a result of tax reform to retained earnings. This new guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted in annual and interim periods and can be applied retrospectively or in the period of adoption. The Company adopted this ASU in the first quarter of its current fiscal year and had no impact on its consolidated financial statements. |
Related Parties
Related Parties | 3 Months Ended |
Jul. 31, 2018 | |
Related Parties [Abstract] | |
Related Parties | Note I - Related Parties In March, 2015, two of the Company’s executive officers invested in a start-up customer, Petzila, Inc. (“Petzila”). The executive officers’ investments constituted less than 2% (individually and in aggregate) of the outstanding beneficial ownership of Petzila, according to information provided by Petzila to the executive officers. On April 30, 2018 the Company foreclosed on its security interest that consisted of an outstanding note receivable of $2,117,500 and account receivable of $1,535,300 and held a public sale of the assets in accordance with the requirements of Article 9 of the California Uniform Commercial Code. The Company acquired all of the assets of Petzila as the winning bidder at the public sale by a credit bid of $3,500,000 , the aggregate amount of Petzila’s liability to the company. Concurrent with the foreclosure sale, the Company entered into an Asset Purchase Agreement with Wagz, Inc. (Wagz) whereby the Company sold the assets to Wagz for $350,000 cash, 600,000 shares of Wagz common stock and an earn-out based on sales by Wagz generated from use of the assets through July 31, 2022 . The earn-out is $6.00 per unit of a product specified in the asset purchase agreement and any upgrade to such product. Note I - Related Parties - Continued Accordingly, the Company recognized the fair value of the assets received from Wagz and derecognized the receivables from Petzila. The fair value of the assets received from Wagz was approximately $950,000 ; therefore, the Company recognized a loss of approximately $2,509,423 in its consolidated statement of operations for the year ended April 30, 2018. The fair value of the non-cash consideration consisted of $600,000 for the 600,000 shares of Wagz common stock which is recorded within other assets. The Company determined the fair value of the equity using the price per common share received by Wagz in a recent financing transaction, a level 3 input. The Company did not assign any value to the earn-out because any receipts from the earn-out are highly uncertain and contingent upon Wagz selling the product specified in the asset purchase agreement between the Company and Wagz . There was no change in the fair value of the common stock and no amounts were recognized for the earn-out as of July 31, 2018. |
Critical Accounting Policies (P
Critical Accounting Policies (Policy) | 3 Months Ended |
Jul. 31, 2018 | |
Critical Accounting Policies [Abstract] | |
Management Estimates And Uncertainties | Management Estimates and Uncertainties - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory, lower of cost or market adjustment for inventory, contingent consideration, deferred taxes, uncertain tax positions, valuation allowance for deferred taxes and valuation of long-lived assets. Actual results could materially differ from these estimates. |
Revenue Recognition | Revenue Recognition – The Company recognizes revenue when control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s primary performance obligation to its customers is the production of finished goods electronic assembly products pursuant to purchase orders. The Company has concluded that control of the products it sells transfers to its customers and an enforceable right to receive payment is customarily established at the point in time when the finished goods are shipped to its customers, or in some cases delivery pursuant to the specified shipping terms of each customer arrangement. With respect to consignment arrangements, control transfers and revenue is recognized at the point in time when the goods are shipped to the customer from the consignment location or when delivered to the customer (pursuant to agreed upon shipping terms). In those limited instances where finished goods delivered to the customer location are stored in a segregated area which are not controlled by the customer (title transfer, etc.) until they are pulled from the segregated area and consumed by the Company’s customer, revenue is recognized upon consumption. For tooling services, the Company’s performance obligation is satisfied at the point in time when the customer takes possession of dies and/ or molds. For engineering, design, and testing services, the Company’s performance obligations are satisfied over time as the respective services are rendered as its customers simultaneously derive value from the Company’s performance. From the time that a customer purchase order is received and contract is established, the Company’s performance obligations are typically fulfilled within a few weeks. The Company does not have any performance obligations that require more than one year to fulfill. Each customer purchase order sets forth the transaction price for the products and services purchased under that arrangement. The Company evaluates the credit worthiness of its customers and exercises judgment to recognize revenue based upon the amount the Company expects to be paid for each sales transaction it enters into with its customers. Some customer arrangements include variable consideration, such as volume rebates, some of which depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date. The Company’s typical payment terms are 30 days and its sales arrangements do not contain any significant financing component for its customers. The Company’s customer arrangements do not generate contract assets or liabilities that are material to the consolidated financial statements. The Company generally provides a warranty for workmanship, unless the assembly was designed by the Company, in which case it warrants assembly/design. The Company assembles and tests assemblies based on customers’ specifications prior to shipment. Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties. The Company utilized the practical expedient to treat shipping and handling activities after the customer obtains control as fulfillment activities. The Company records shipping and handling costs as selling and administrative expenses and costs are accrued when revenue is recognized. Customers are typically invoiced for shipping costs and such amounts are included in net sales. The Company pays sales commissions to its sales representatives which may be considered as incremental costs to obtain a contract. However, since the recoverability period is less than one year, the Note H - Critical Accounting Policies - Continued Company utilized the practical expedient provided by the new revenue recognition accounting standard that allows an entity to expense the costs of obtaining a contract as incurred. During the first quarter of fiscal 2019, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods and no amounts were allocated to performance obligations that remain unsatisfied or partially unsatisfied at July 31, 2018. The following table presents the Company’s revenue disaggregated by the principal end-user markets it serves: Three Months Ended July 31, Net trade sales by end-market 2018 Industrial Electronics 38,135,102 Consumer Electronics 29,200,913 Medical / Life Sciences 4,078,042 Total Net Trade Sales 71,414,057 |
Inventories | Inventories - Inventories are valued at cost. Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods. In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or net realizable value. The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory. The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss. The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions. For convenience, the Company records these inventory reserves against the inventory cost through a contra asset rather than through a new cost basis. Upon a subsequent sale or disposal of the impaired inventory, the corresponding reserve is relieved to ensure the cost basis of the inventory reflects any reductions. Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold as the inventory is sold or otherwise relieved. |
Intangible Assets | Intangible Assets - Intangible assets are comprised of finite life intangible assets including patents, trade names, backlog, non-compete agreements, and customer relationships. Finite life intangible assets are amortized on a straight line basis over their estimated useful lives of 5 years for patents, 20 years for trade names, 1 year for backlog and 7 years for non-compete agreements except for customer relationships which are amortized on an accelerated basis over their estimated useful life of 15 years. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets - The Company reviews long-lived assets, including amortizable intangible assets, for impairment. Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment. If events or changes in circumstances occur that indicate possible impairment, the Company first performs an impairment review based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities. This analysis requires management judgment with respect to changes in technology, the Note H - Critical Accounting Policies - Continued continued success of product lines, and future volume, revenue and expense growth rates. If the carrying value exceeds the undiscounted cash flows, the Company records an impairment for the difference between the estimated fair value of the asset group and its carrying value. The Company further conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment. As a result of the analysis performed in the fourth quarter of fiscal 2018, the Company determined that the carrying value of the trade name intangible asset was not recoverable and recorded a fourth quarter charge of $690,107 for the entire carrying amount. The Company’s analysis did not indicate that any of its other long-lived assets were impaired. As of July 31, 2018, there were no indicators of possible impairment of long-lived assets. |
Income Tax | Income Tax - The Company’s income tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and several foreign jurisdictions. Significant judgments and estimates by management are required in determining the consolidated income tax expense assessment. Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. In evaluating the Company’s ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, the Company begins with historical results and changes in accounting policies, and incorporates assumptions including the amount of future state, federal and foreign pre-tax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment and estimates by management about the forecasts of future taxable income and are consistent with the plans and estimates the Company uses to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating income and/or loss. Valuation allowances are established when necessary to reduce deferred income tax assets to an amount more likely than not to be realized. The Company established a valuation allowance of $78,100 related to its foreign tax credit carry-forward at April 30, 2017. The Company did not change the previous valuation allowance or establish any new valuation allowances at April 30, 2018 or July 31, 2018. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across its global operations. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Except as noted below, management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. A tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Note H - Critical Accounting Policies - Continued The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. |
New Accounting Standards | New Accounting Standards: In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) which supersedes the revenue recognition requirements in ASC 605, “ Revenue Recognition” . The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer, and replaces most existing revenue recognition guidance in U.S. GAAP. The Company adopted the ASU on May 1, 2018 using the modified retrospective transition method. Under the modified retrospective transition method, the cumulative effect of applying ASC 606 to all contracts that are not completed as of the date of adoption is recorded as an adjustment to the opening balance of retained earnings (if applicable) while the comparative periods are not restated and continue to be reported under the accounting standards in effect for those periods. The Company has determined that revenue from contracts with customers under the new revenue recognition standard is the same as under prior accounting standards. Accordingly, the Company did not record an adjustment to the beginning balance of retained earnings as a result of adopting ASC 606. In February 2016, the FASB issued ASU No. 2016-02, “ Leases” . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for capital leases and operating leases existing at, or entered into as of the effective date of the standard, with certain practical expedients available. While the Company is still evaluating the impact of its pending adoption of the new standard on its consolidated financial statements, the Company expects that upon adoption in the fiscal year ending April 30, 2020, it will recognize ROU assets and lease liabilities and the amounts could be material. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Company is currently evaluating the new guidance and has not determined the impact this ASU may have on its consolidated financial statements. Note H - Critical Accounting Policies – Continued On May 1, 2018, the Company adopted the guidance contained in ASU 2016 -15 , “ Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments ” . The amendments in ASU 2015-16 are applied using a retrospective transition method to each period presented. The Company has evaluated each of the eight specific issues addressed by ASU 2016-15. During the year ended April 30, 2018 the Company received cash settlement of insurance claims related to equipment damaged by a fire at one of its subsidiaries. The estimated settlement was recorded in April 2017 when the settlement was deemed to be probable. Cash payments related to this settlement were received in September 2017, November 2017 and January 2018. The Company has classified these receipts as cash flows from operating activities in its annual and interim statements of cash flows for the year ended April 30, 2018. The Company is not required to restate its statement of cash flow for the three-month period ended July 31, 2017 as the Company did not receive any cash. The Company will be required to reclassify the cash receipts related to this insurance settlement from cash flows from operations to cash flows from investing activities in its statements of cash flows for the six month, nine month and annual periods of the fiscal year ended April 30, 2018. In January 2018, the FASB released guidance on the accounting for tax on the Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company elects to treat any potential GILTI inclusions as a period cost. In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The guidance permits entities to reclassify tax effects stranded in Accumulated Other Comprehensive Income as a result of tax reform to retained earnings. This new guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted in annual and interim periods and can be applied retrospectively or in the period of adoption. The Company adopted this ASU in the first quarter of its current fiscal year and had no impact on its consolidated financial statements. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Inventories, Net [Abstract] | |
Components Of Inventory | July 31, April 30, 2018 2018 Finished products $ 22,242,349 $ 20,404,849 Work-in-process 2,744,046 2,075,465 Raw materials 64,229,332 65,652,411 89,215,727 88,132,725 Less excess and obsolescence reserve (1,202,932) (1,202,932) $ 88,012,795 $ 86,929,793 |
Earnings Per Share And Stockh17
Earnings Per Share And Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share And Stockholders' Equity [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | Three Months Ended July 31, 2018 2017 Net (loss) income $ (526,607) $ 382,882 Weighted-average shares Basic 4,223,657 4,195,985 Effect of dilutive stock options - 73,516 Diluted 4,223,657 4,269,501 Basic earnings per share $ (0.12) $ 0.09 Diluted earnings per share $ (0.12) $ 0.09 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Intangible Assets [Abstract] | |
Summary Of Intangible Assets Subject To Amortization | Intangible assets subject to amortization are summarized as of July 31, 2018 as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 8.83 4,690,000 1,701,990 Backlog - 22,000 22,000 Non-compete agreements 0.83 50,000 44,030 Patents - 400,000 400,000 Total $ 7,932,000 $ 4,938,020 Intangible assets subject to amortization are summarized as of April 30, 2018, as follows: Weighted Average Remaining Gross Amortization Carrying Accumulated Period (Years) Amount Amortization Other intangible assets – Able - $ 375,000 $ 375,000 Customer relationships – Able - 2,395,000 2,395,000 Spitfire: Non-contractual customer relationships 9.08 4,690,000 1,609,670 Backlog - 22,000 22,000 Non-compete agreements 1.08 50,000 42,245 Patents - 400,000 400,000 Total $ 7,932,000 $ 4,843,915 |
Estimated Aggregate Amortization Expense | For the remaining 9 months of the fiscal year ending April 30: 2019 $ 280,620 For the fiscal years ending April 30: 2020 362,410 2021 354,203 2022 346,582 2023 339,128 Thereafter 1,311,037 $ 2,993,980 |
Critical Accounting Policies (T
Critical Accounting Policies (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Critical Accounting Policies [Abstract] | |
Revenue Disaggregated By Principal End-User Markets | Three Months Ended July 31, Net trade sales by end-market 2018 Industrial Electronics 38,135,102 Consumer Electronics 29,200,913 Medical / Life Sciences 4,078,042 Total Net Trade Sales 71,414,057 |
Inventories, Net (Components Of
Inventories, Net (Components Of Inventory) (Details) - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Inventories, Net [Abstract] | ||
Finished products | $ 22,242,349 | $ 20,404,849 |
Work-in-process | 2,744,046 | 2,075,465 |
Raw materials | 64,229,332 | 65,652,411 |
Total inventory, gross | 89,215,727 | 88,132,725 |
Less excess and obsolescence reserve | (1,202,932) | (1,202,932) |
Total inventory, net | $ 88,012,795 | $ 86,929,793 |
Earnings Per Share And Stockh21
Earnings Per Share And Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Earnings Per Share And Stockholders' Equity [Abstract] | ||
Common stock shares were outstanding | 347,318 | 362,803 |
Options granted | 0 | 0 |
Stock option expense | $ 0 | $ 83,659 |
Balance of unrecognized compensation expense related to stock options plans | $ 0 | $ 0 |
Anti-dilutive common stock outstanding excluded from the calculation of diluted earnings per share | 0 | 0 |
Earnings Per Share And Stockh22
Earnings Per Share And Stockholders' Equity (Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Earnings Per Share And Stockholders' Equity [Abstract] | ||
Net (loss) income | $ (526,607) | $ 382,882 |
Weighted-average shares, Basic | 4,223,657 | 4,195,985 |
Weighted-average shares, Effect of dilutive stock options | 73,516 | |
Weighted-average shares, Diluted | 4,223,657 | 4,269,501 |
Basic earnings per share | $ (0.12) | $ 0.09 |
Diluted earnings per share | $ (0.12) | $ 0.09 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Jul. 16, 2018USD ($)item | May 01, 2018USD ($) | Feb. 12, 2018CNY (¥) | Dec. 21, 2017USD ($) | Oct. 01, 2017USD ($) | Jun. 01, 2017USD ($) | Feb. 01, 2017USD ($) | Nov. 01, 2016USD ($) | Nov. 24, 2014USD ($) | Mar. 31, 2017USD ($) | Apr. 30, 2018USD ($) | Jul. 31, 2015USD ($) | Jun. 30, 2017USD ($) | Jul. 31, 2018USD ($) |
Associated Bank, National Association [Member] | Capital Lease And Sale Leaseback Agreements [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total equipment purchased under the capital lease | $ 6,893,596 | |||||||||||||
Outstanding amount under capital lease | $ 2,923,524 | $ 2,573,702 | ||||||||||||
Net book value of capital leased assets | 4,799,827 | 4,657,943 | ||||||||||||
CIT Finance LLC [Member] | Capital Lease Obligations [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total equipment purchased under the capital lease | $ 2,512,051 | |||||||||||||
Outstanding amount under capital lease | 984,031 | 863,655 | ||||||||||||
Net book value of capital leased assets | 1,736,688 | 1,684,353 | ||||||||||||
First American Equipment Finance [Member] | Capital Sales Leaseback Agreement [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total equipment purchased under the capital lease | 3,011,387 | |||||||||||||
Outstanding amount under capital lease | 2,688,029 | 2,514,937 | ||||||||||||
Net book value of capital leased assets | 2,808,209 | 2,742,439 | ||||||||||||
U.S. Bank [Member] | Notes Payable - Banks [Member] | Corporate Headquarters And Manufacturing Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Mortgage agreement, outstanding amount | 5,148,000 | 5,096,000 | ||||||||||||
U.S. Bank [Member] | Notes Payable - Buildings [Member] | Corporate Headquarters And Manufacturing Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Deferred financing costs | 74,066 | |||||||||||||
Unamortized amount offset against outstanding debt | 62,671 | |||||||||||||
Mortgage agreement, amount | $ 5,200,000 | |||||||||||||
Mortgage agreement, interest rate | 4.00% | |||||||||||||
Mortgage agreement, final payment | $ 4,347,778 | |||||||||||||
Mortgage agreement, maturity date | Mar. 31, 2022 | |||||||||||||
Mortgage agreement, monthly principal payment | $ 17,333 | |||||||||||||
Mortgage agreement, payable period | 51 months | |||||||||||||
U.S. Bank [Member] | Notes Payable - Buildings [Member] | Engineering And Design Center [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Deferred financing costs | 65,381 | |||||||||||||
Unamortized amount offset against outstanding debt | 55,322 | |||||||||||||
Mortgage agreement, amount | $ 1,800,000 | |||||||||||||
Mortgage agreement, interest rate | 4.00% | |||||||||||||
Mortgage agreement, final payment | $ 1,505,000 | |||||||||||||
Mortgage agreement, maturity date | Mar. 31, 2022 | |||||||||||||
Mortgage agreement, monthly principal payment | $ 6,000 | |||||||||||||
Mortgage agreement, payable period | 51 months | |||||||||||||
Mortgage agreement, outstanding amount | 1,782,000 | $ 1,764,000 | ||||||||||||
U.S. Bank [Member] | Senior Secured Credit Facility [Member] | Notes Payable - Banks [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility credit limit | $ 35,000,000 | |||||||||||||
Expiration date | Mar. 31, 2022 | |||||||||||||
Fixed interest rate | 5.00% | |||||||||||||
Variable interest rate | 1.50% | |||||||||||||
Effective interest rate | 3.83% | |||||||||||||
Deferred financing costs | $ 11,100 | |||||||||||||
Unamortized amount offset against outstanding debt | 192,502 | 191,068 | ||||||||||||
Outstanding balance under the credit facility | 29,279,631 | 34,201,740 | ||||||||||||
Unused availability under the credit facility | 5,720,369 | 5,503,206 | ||||||||||||
U.S. Bank [Member] | Credit Facility [Member] | Notes Payable - Banks [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility credit limit | $ 45,000,000 | |||||||||||||
Borrowing base percentage | 90.00% | |||||||||||||
Number of days in measuring borrowing base requirements | item | 90 | |||||||||||||
Borrowing base minimum requirement | 80.00% | |||||||||||||
Fixed charge coverage ratio | 1.20% | |||||||||||||
Sublimits on inventory | $ 17,500,000 | |||||||||||||
Sublimits on finished goods | $ 25,000,000 | |||||||||||||
Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment 1 [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 6.65% | |||||||||||||
Secured note agreement amount | $ 596,987 | |||||||||||||
Term extended agreement date | Nov. 1, 2021 | |||||||||||||
Average quarterly payment under secured note agreement | $ 35,060 | |||||||||||||
Secured note agreement, first payment date | Feb. 1, 2017 | |||||||||||||
Outstanding amount under note agreement | 447,741 | 417,891 | ||||||||||||
Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment 2 [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 7.35% | |||||||||||||
Secured note agreement amount | $ 335,825 | |||||||||||||
Term extended agreement date | Feb. 1, 2022 | |||||||||||||
Average quarterly payment under secured note agreement | $ 20,031 | |||||||||||||
Secured note agreement, first payment date | May 1, 2017 | |||||||||||||
Outstanding amount under note agreement | 268,660 | 251,869 | ||||||||||||
Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment 3 [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 7.35% | |||||||||||||
Secured note agreement amount | $ 636,100 | |||||||||||||
Term extended agreement date | Jun. 1, 2022 | |||||||||||||
Average quarterly payment under secured note agreement | $ 37,941 | |||||||||||||
Secured note agreement, first payment date | Sep. 1, 2017 | |||||||||||||
Outstanding amount under note agreement | 540,685 | 508,880 | ||||||||||||
Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment 4 [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 7.35% | |||||||||||||
Secured note agreement amount | $ 307,036 | |||||||||||||
Term extended agreement date | Nov. 1, 2022 | |||||||||||||
Average quarterly payment under secured note agreement | $ 18,314 | |||||||||||||
Secured note agreement, first payment date | Feb. 1, 2018 | |||||||||||||
Outstanding amount under note agreement | $ 291,684 | 276,332 | ||||||||||||
Engencap Fin S.A. DE C.V. [Member] | Notes Payable - Equipment 5 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 8.00% | |||||||||||||
Secured note agreement amount | $ 182,557 | |||||||||||||
Term extended agreement date | May 1, 2023 | |||||||||||||
Average quarterly payment under secured note agreement | $ 11,045 | |||||||||||||
Secured note agreement, first payment date | Aug. 1, 2018 | |||||||||||||
Outstanding amount under note agreement | 182,557 | |||||||||||||
Minimum [Member] | Associated Bank, National Association [Member] | Capital Lease And Sale Leaseback Agreements [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Lease financing agreement date | Sep. 1, 2018 | |||||||||||||
Payments under capital lease | $ 1,455 | |||||||||||||
Fixed interest rate under capital lease | 3.75% | |||||||||||||
Minimum [Member] | CIT Finance LLC [Member] | Capital Lease Obligations [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Lease financing agreement date | Mar. 1, 2019 | |||||||||||||
Payments under capital lease | $ 1,931 | |||||||||||||
Fixed interest rate under capital lease | 5.65% | |||||||||||||
Minimum [Member] | First American Equipment Finance [Member] | Capital Sales Leaseback Agreement [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Lease financing agreement date | Aug. 1, 2021 | |||||||||||||
Payments under capital lease | $ 6,716 | |||||||||||||
Fixed interest rate under capital lease | 5.82% | |||||||||||||
Maximum [Member] | Associated Bank, National Association [Member] | Capital Lease And Sale Leaseback Agreements [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Lease financing agreement date | May 1, 2022 | |||||||||||||
Payments under capital lease | $ 40,173 | |||||||||||||
Fixed interest rate under capital lease | 4.90% | |||||||||||||
Maximum [Member] | CIT Finance LLC [Member] | Capital Lease Obligations [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Lease financing agreement date | Jul. 1, 2020 | |||||||||||||
Payments under capital lease | $ 12,764 | |||||||||||||
Fixed interest rate under capital lease | 6.50% | |||||||||||||
Maximum [Member] | First American Equipment Finance [Member] | Capital Sales Leaseback Agreement [Member] | Equipment [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Lease financing agreement date | Apr. 1, 2022 | |||||||||||||
Payments under capital lease | $ 20,093 | |||||||||||||
Fixed interest rate under capital lease | 7.23% | |||||||||||||
SigmaTron Electronic Technology Co [Member] | Foreign Subsidiaries [Member] | China Construction Bank [Member] | Credit Facility [Member] | Notes Payable - Banks [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility credit limit | ¥ | ¥ 5,000,000 | |||||||||||||
Expiration date | Feb. 7, 2019 | |||||||||||||
Fixed interest rate | 6.09% | |||||||||||||
Outstanding balance under the credit facility | $ 0 | $ 0 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Apr. 30, 2018 | May 31, 2012 | |
Goodwill [Line Items] | ||||
Amortization expense | $ 94,105 | $ 112,591 | ||
Fully amortized year | 2,027 | |||
Adjustment on contingent consideration liability | $ 17,529 | 16,493 | ||
Spitfire [Member] | ||||
Goodwill [Line Items] | ||||
Estimated fair value of contingent consideration | $ 2,320,000 | |||
Total payment for business acquisition | 55,075 | $ 45,875 | ||
Adjustment on contingent consideration liability | 17,529 | |||
Contingent consideration liability | $ 175,914 | $ 213,460 |
Intangible Assets (Summary Of I
Intangible Assets (Summary Of Intangible Assets Subject To Amortization) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2018 | Apr. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,932,000 | $ 7,932,000 |
Accumulated Amortization | 4,938,020 | 4,843,915 |
Able [Member] | Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 375,000 | 375,000 |
Accumulated Amortization | 375,000 | 375,000 |
Able [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,395,000 | 2,395,000 |
Accumulated Amortization | $ 2,395,000 | $ 2,395,000 |
Spitfire [Member] | Non-Contractual Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 8 years 9 months 29 days | 9 years 29 days |
Gross Carrying Amount | $ 4,690,000 | $ 4,690,000 |
Accumulated Amortization | 1,701,990 | 1,609,670 |
Spitfire [Member] | Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 22,000 | 22,000 |
Accumulated Amortization | $ 22,000 | $ 22,000 |
Spitfire [Member] | Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 9 months 29 days | 1 year 29 days |
Gross Carrying Amount | $ 50,000 | $ 50,000 |
Accumulated Amortization | 44,030 | 42,245 |
Spitfire [Member] | Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 400,000 | 400,000 |
Accumulated Amortization | $ 400,000 | $ 400,000 |
Intangible Assets (Estimated Ag
Intangible Assets (Estimated Aggregate Amortization Expense) (Details) - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Intangible Assets [Abstract] | ||
For the remaining 9 months of the fiscal year ending April 30, 2019 | $ 280,620 | |
For the fiscal year ending April 30, 2020 | 362,410 | |
For the fiscal year ending April 30, 2021 | 354,203 | |
For the fiscal year ending April 30, 2022 | 346,582 | |
For the fiscal year ending April 30, 2023 | 339,128 | |
Thereafter | 1,311,037 | |
Total | $ 2,993,980 | $ 3,088,085 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) | Dec. 22, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 |
Income Tax [Abstract] | ||||
Income tax (benefit) expense | $ (197,006) | $ 197,963 | ||
Effective income tax rate | 27.22% | 34.08% | ||
Federal tax rate | 34.00% | 21.00% |
Critical Accounting Policies (N
Critical Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2018 | Apr. 30, 2018 | Apr. 30, 2017 | |
Summary Of Critical Accounting Policies [Line Items] | |||
Valuation allowances | $ 78,100 | ||
Patents [Member] | |||
Summary Of Critical Accounting Policies [Line Items] | |||
Estimated useful life | 5 years | ||
Trade Names [Member] | |||
Summary Of Critical Accounting Policies [Line Items] | |||
Estimated useful life | 20 years | ||
Long-lived assets impairment | $ 690,107 | ||
Backlog [Member] | |||
Summary Of Critical Accounting Policies [Line Items] | |||
Estimated useful life | 1 year | ||
Non-Compete Agreements [Member] | |||
Summary Of Critical Accounting Policies [Line Items] | |||
Estimated useful life | 7 years | ||
Customer Relationships [Member] | |||
Summary Of Critical Accounting Policies [Line Items] | |||
Estimated useful life | 15 years |
Critical Accounting Policies (R
Critical Accounting Policies (Revenue Disaggregated By Principal End-User Markets) (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Product Information [Line Items] | ||
Total Net Trade Sales | $ 71,414,057 | $ 71,224,293 |
Industrial Electronics [Member] | ||
Product Information [Line Items] | ||
Total Net Trade Sales | 38,135,102 | |
Consumer Electronics [Member] | ||
Product Information [Line Items] | ||
Total Net Trade Sales | 29,200,913 | |
Medical / Life Sciences [Member] | ||
Product Information [Line Items] | ||
Total Net Trade Sales | $ 4,078,042 |
Related Parties (Narrative) (De
Related Parties (Narrative) (Details) | 12 Months Ended | |
Apr. 30, 2018USD ($)$ / itemshares | Mar. 31, 2015employee | |
Related Party Transaction [Line Items] | ||
Amount owed by Petzila | $ 3,500,000 | |
Outstanding note receivable from related parties | 2,117,500 | |
Outstanding account receivable from related parties | 1,535,300 | |
Cash from sold assets to Wagz | 350,000 | |
Loss on settlement of receivable and disposal of related assets | 2,509,423 | |
Fair value of non-cash consideration | $ 600,000 | |
Executive [Member] | ||
Related Party Transaction [Line Items] | ||
Number of executive officers invested in a start-up customer | employee | 2 | |
Maximum [Member] | Executive [Member] | ||
Related Party Transaction [Line Items] | ||
Executive officers' investment holding, percentage | 2.00% | |
Wagz [Member] | ||
Related Party Transaction [Line Items] | ||
Asset Purchase Agreement end date | Jul. 31, 2022 | |
Asset Purchase Agreement earn-out | $ / item | 6 | |
Fair value of assets received | $ 950,000 | |
Common Class C [Member] | Wagz [Member] | ||
Related Party Transaction [Line Items] | ||
Shares acquired from Asset Purchase Agreement | shares | 600,000 |