Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Nov. 30, 2013 | Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Nov-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'SMIT | ' |
Entity Registrant Name | 'SCHMITT INDUSTRIES INC | ' |
Entity Central Index Key | '0000922612 | ' |
Current Fiscal Year End Date | '--05-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 2,990,910 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 30, 2013 | 31-May-13 |
Current assets | ' | ' |
Cash and cash equivalents | $2,115,635 | $1,909,071 |
Accounts receivable, net of allowance of $31,663 and $30,576 at November 30, 2013 and May 31, 2013, respectively | 2,180,229 | 1,980,685 |
Inventories | 4,665,685 | 5,054,087 |
Prepaid expenses | 131,262 | 219,492 |
Income taxes receivable | 21,609 | 48,095 |
Total current assets | 9,114,420 | 9,211,430 |
Property and equipment | ' | ' |
Land | 299,000 | 299,000 |
Buildings and improvements | 1,805,951 | 1,805,951 |
Furniture, fixtures and equipment | 1,313,464 | 1,312,028 |
Vehicles | 121,835 | 121,835 |
Property, plant and equipment, gross | 3,540,250 | 3,538,814 |
Less accumulated depreciation and amortization | -2,311,911 | -2,203,924 |
Property, plant and equipment, net | 1,228,339 | 1,334,890 |
Other assets | ' | ' |
Intangible assets, net | 1,010,961 | 1,078,278 |
TOTAL ASSETS | 11,353,720 | 11,624,598 |
Current liabilities | ' | ' |
Accounts payable | 547,479 | 918,094 |
Accrued commissions | 203,251 | 273,307 |
Accrued payroll liabilities | 100,126 | 131,772 |
Other accrued liabilities | 319,650 | 286,307 |
Line of credit | 400,000 | 0 |
Total current liabilities | 1,570,506 | 1,609,480 |
Stockholders' equity | ' | ' |
Common stock, no par value, 20,000,000 shares authorized, 2,990,910 shares issued and outstanding at both November 30, 2013 and May 31, 2013 | 10,394,456 | 10,369,524 |
Accumulated other comprehensive loss | -279,000 | -331,924 |
Accumulated deficit | -332,242 | -22,482 |
Total stockholders' equity | 9,783,214 | 10,015,118 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $11,353,720 | $11,624,598 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 30, 2013 | 31-May-13 |
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance | $31,663 | $30,576 |
Common stock, par value | ' | ' |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 2,990,910 | 2,990,910 |
Common stock, shares outstanding | 2,990,910 | 2,990,910 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $3,143,052 | $2,702,259 | $6,042,499 | $6,382,924 |
Cost of sales | 1,675,184 | 1,160,031 | 3,243,509 | 2,966,748 |
Gross profit | 1,467,868 | 1,542,228 | 2,798,990 | 3,416,176 |
Operating expenses: | ' | ' | ' | ' |
General, administration and sales | 1,507,046 | 1,523,918 | 2,858,748 | 3,156,733 |
Research and development | 112,096 | 131,365 | 238,860 | 246,674 |
Total operating expenses | 1,619,142 | 1,655,283 | 3,097,608 | 3,403,407 |
Operating income (loss) | -151,274 | -113,055 | -298,618 | 12,769 |
Other income (expense) | -9,546 | 7,915 | -6,093 | 8,427 |
Income (loss) before income taxes | -160,820 | -105,140 | -304,711 | 21,196 |
Provision (benefit) for income taxes | 2,381 | -536 | 5,049 | 5,652 |
Net income (loss) | -163,201 | -104,604 | -309,760 | 15,544 |
Net earnings (loss) per common share: | ' | ' | ' | ' |
Basic | ($0.05) | ($0.03) | ($0.10) | $0.01 |
Weighted average number of common shares, basic | 2,990,910 | 2,990,910 | 2,990,910 | 2,990,910 |
Diluted | ($0.05) | ($0.03) | ($0.10) | $0.01 |
Weighted average number of common shares, diluted | 2,990,910 | 2,990,910 | 2,990,910 | 3,003,828 |
Comprehensive income (loss) | ' | ' | ' | ' |
Net income (loss) | -163,201 | -104,604 | -309,760 | 15,544 |
Foreign currency translation adjustment | 49,324 | -1,930 | 52,924 | 9,443 |
Total comprehensive income (loss) | ($113,877) | ($106,534) | ($256,836) | $24,987 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Cash flows relating to operating activities | ' | ' |
Net income (loss) | ($309,760) | $15,544 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 175,304 | 173,642 |
Stock based compensation | 24,932 | 45,102 |
(Increase) decrease in: | ' | ' |
Accounts receivable | -171,220 | 398,602 |
Inventories | 410,457 | -439,232 |
Prepaid expenses | 89,619 | 48,849 |
Income taxes receivable | 26,486 | -15,702 |
Increase (decrease) in: | ' | ' |
Accounts payable | -376,035 | -181,015 |
Accrued liabilities and customer deposits | -73,194 | -10,482 |
Net cash provided by (used in) operating activities | -203,411 | 35,308 |
Cash flows relating to investing activities | ' | ' |
Purchase of property and equipment | -1,436 | -142,617 |
Net cash used in investing activities | -1,436 | -142,617 |
Cash flows relating to financing activities | ' | ' |
Borrowings on line of credit | 400,000 | 0 |
Net cash provided by financing activities | 400,000 | 0 |
Effect of foreign exchange translation on cash | 11,411 | -7,187 |
Increase (Decrease) in cash and cash equivalents | 206,564 | -114,496 |
Cash and cash equivalents, beginning of period | 1,909,071 | 2,776,817 |
Cash and cash equivalents, end of period | 2,115,635 | 2,662,321 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for income taxes | 5,064 | 21,353 |
Cash paid during the period for interest | $7,178 | $0 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Accumulated other comprehensive loss [Member] | Accumulated deficit [Member] |
Beginning balance at May. 31, 2013 | $10,015,118 | $10,369,524 | ($331,924) | ($22,482) |
Beginning balance, shares at May. 31, 2013 | ' | 2,990,910 | ' | ' |
Stock-based compensation | 24,932 | 24,932 | 0 | 0 |
Net loss | -309,760 | 0 | 0 | -309,760 |
Other comprehensive income | 52,924 | 0 | 52,924 | 0 |
Ending balance at Nov. 30, 2013 | $9,783,214 | $10,394,456 | ($279,000) | ($332,242) |
Ending balance, shares at Nov. 30, 2013 | ' | 2,990,910 | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Nov. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Note 1: | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The consolidated financial information included herein has been prepared by Schmitt Industries, Inc. (the Company or Schmitt) and its wholly owned subsidiaries. In the opinion of management, the accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly its financial position as of November 30, 2013 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2013 has been derived from the Annual Report on Form 10-K for the fiscal year ended May 31, 2013. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2013. Operating results for the interim periods presented are not necessarily indicative of the results that may be experienced for the fiscal year ending May 31, 2014. | |
Revenue Recognition | |
The Company recognizes revenue for sales and billing for freight charges upon delivery of the product to the customer at a fixed and determinable price with a reasonable assurance of collection, passage of title to the customer as indicated by shipping terms and fulfilment of all significant obligations, pursuant to the guidance provided by Accounting Standards Codification (“ASC”) Topic 605. For sales to all customers, including manufacturer representatives, distributors or their third-party customers, these criteria are met at the time product is shipped. When other significant obligations remain after products are delivered, revenue is recognized only after such obligations are fulfilled. In addition, judgments are required in evaluating the credit worthiness of our customers. Credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured. | |
Financial Instruments | |
The carrying value of all other financial instruments potentially subject to valuation risk (principally consisting of cash and cash equivalents, accounts receivable, accounts payable and the line of credit) approximates fair value because of their short-term maturities. |
Inventory
Inventory | 6 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
Note 2: | |||||||||
INVENTORY | |||||||||
Inventory is valued at the lower of cost or market with cost determined on the average cost basis. Costs included in inventories consist of materials, labor and manufacturing overhead, which are related to the purchase or production of inventories. Write-downs, when required, are made to reduce excess inventories to their net realizable values. Such estimates are based on assumptions regarding future demand and market conditions. If actual conditions become less favorable than the assumptions used, an additional inventory write-down may be required. As of November 30, 2013 and May 31, 2013, inventories consisted of: | |||||||||
November 30, 2013 | May 31, 2013 | ||||||||
Raw materials | $ | 2,014,146 | $ | 2,225,295 | |||||
Work-in-process | 924,904 | 1,132,534 | |||||||
Finished goods | 1,726,635 | 1,696,258 | |||||||
$ | 4,665,685 | $ | 5,054,087 | ||||||
Line_of_Credit
Line of Credit | 6 Months Ended |
Nov. 30, 2013 | |
Text Block [Abstract] | ' |
Line of Credit | ' |
Note 3: | |
LINE OF CREDIT | |
In February 2012, the Company extended its bank line of credit secured by U.S. accounts receivable, inventories and general intangibles through March 1, 2014 and raised the lending limit from $1.0 million to $2.0 million. Interest is payable at the bank’s prime rate (3.25% as of November 30, 2013) or LIBOR plus 2.0% (2.17% as of November 30, 2013). The outstanding balance on the line of credit was $400,000 and $0 at November 30, 2013 and May 31, 2013, respectively. |
Stock_Options_and_StockBased_C
Stock Options and Stock-Based Compensation | 6 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |||||||||||||||||||||||
Stock Options and Stock-Based Compensation | ' | |||||||||||||||||||||||
Note 4: | ||||||||||||||||||||||||
STOCK OPTIONS AND STOCK-BASED COMPENSATION | ||||||||||||||||||||||||
Stock-based compensation includes expense charges for all stock-based awards to employees and directors granted under the Company’s stock option plan. Stock-based compensation recognized during the period is based on the portion of the grant date fair value of the stock-based award that will vest during the period, adjusted for expected forfeitures. Compensation cost for all stock-based awards is recognized using the straight-line method. The Company uses the Black-Scholes option pricing model as its method of valuation for stock-based awards. The Black-Scholes option pricing model requires the input of highly subjective assumptions, and other reasonable assumptions could provide differing results. These variables include, but are not limited to: | ||||||||||||||||||||||||
• | Risk-Free Interest Rate. The Company bases the risk-free interest rate on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term approximately equal to the expected life of the award. | |||||||||||||||||||||||
• | Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and pre-vesting and post-vesting forfeitures. | |||||||||||||||||||||||
• | Expected Volatility. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock. The volatility factor the Company uses is based on its historical stock prices over the most recent period commensurate with the estimated expected life of the award. These historical periods may exclude portions of time when unusual transactions occurred. | |||||||||||||||||||||||
• | Expected Dividend Yield. The Company does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero. | |||||||||||||||||||||||
• | Expected Forfeitures. The Company uses relevant historical data to estimate pre-vesting option forfeitures. The Company records stock-based compensation only for those awards that are expected to vest. | |||||||||||||||||||||||
The Company has computed, to determine stock-based compensation expense recognized for those options granted during the three and six months ended November 30, 2013 and 2012, the value of all stock options granted using the Black-Scholes option pricing model. 35,000 options were issued during the six months ended November 30, 2013. No options were issued during the six months ended November 30, 2012. | ||||||||||||||||||||||||
At November 30, 2013, the Company had a total of 286,666 outstanding stock options (204,998 vested and exercisable and 81,668 non-vested) with a weighted average exercise price of $3.74. The Company estimates that $74,030 will be recorded as additional stock-based compensation expense for all options that were outstanding as of November 30, 2013, but which were not yet vested. | ||||||||||||||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||||||||||||
Number | Weighted | Weighted | Number of | Weighted | ||||||||||||||||||||
of Shares | Average | Average | Shares | Average | ||||||||||||||||||||
Exercise Price | Remaining | Exercise Price | ||||||||||||||||||||||
Contractual | ||||||||||||||||||||||||
Life (yrs) | ||||||||||||||||||||||||
41,666 | $ | 2.3 | 0.5 | 41,666 | $ | 2.3 | ||||||||||||||||||
35,000 | 2.53 | 9.8 | 0 | N/A | ||||||||||||||||||||
25,000 | 2.9 | 9.4 | 0 | N/A | ||||||||||||||||||||
130,000 | 3.65 | 7.5 | 108,332 | 3.65 | ||||||||||||||||||||
5,000 | 5.8 | 1.9 | 5,000 | 5.8 | ||||||||||||||||||||
50,000 | 6.25 | 4.5 | 50,000 | 6.25 | ||||||||||||||||||||
286,666 | 3.74 | 6.3 | 204,998 | 4.06 | ||||||||||||||||||||
Options granted, exercised, and forfeited or canceled under the Company’s stock option plan during the three and six months ended November 30, 2013 are summarized as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
November 30, 2013 | November 30, 2013 | |||||||||||||||||||||||
Number | Weighted | Number | Weighted | |||||||||||||||||||||
of Shares | Average | of Shares | Average | |||||||||||||||||||||
Exercise Price | Exercise Price | |||||||||||||||||||||||
Options outstanding - beginning of period | 251,666 | $ | 3.91 | 301,666 | $ | 4.06 | ||||||||||||||||||
Options granted | 35,000 | 2.53 | 35,000 | 2.53 | ||||||||||||||||||||
Options exercised | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Options forfeited/canceled | 0 | 0 | (50,000 | ) | 4.82 | |||||||||||||||||||
Options outstanding - end of period | 286,666 | 3.74 | 286,666 | 3.74 | ||||||||||||||||||||
EPS_Reconciliation
EPS Reconciliation | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
EPS Reconciliation | ' | ||||||||||||||||
Note 5: | |||||||||||||||||
EPS RECONCILIATION | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average shares (basic) | 2,990,910 | 2,990,910 | 2,990,910 | 2,990,910 | |||||||||||||
Effect of dilutive stock options | 0 | 0 | 0 | 12,918 | |||||||||||||
Weighted average shares (diluted) | 2,990,910 | 2,990,910 | 2,990,910 | 3,003,828 | |||||||||||||
Basic earnings (loss) per share is computed using the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed using the weighted average number of common shares outstanding, adjusted for dilutive incremental shares attributed to outstanding options to purchase common stock. Common stock equivalents for stock options are computed using the treasury stock method. In periods in which a net loss is incurred, no common stock equivalents are included since they are antidilutive and as such all stock options outstanding are excluded from the computation of diluted net loss in those periods. |
Income_Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Note 6: | |
INCOME TAXES | |
The Company accounts for income taxes using the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
Each year the Company files income tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the taxing authorities. Positions challenged by the taxing authorities may be settled or appealed by the Company. As a result, there is an uncertainty in income taxes recognized in the Company’s financial statements in accordance with ASC Topic 740. The Company applies this guidance by defining criteria that an individual income tax position must meet for any part of the benefit of that position to be recognized in an enterprise’s financial statements and provides guidance on measurement, de-recognition, classification, accounting for interest and penalties, accounting in interim periods, disclosure, and transition. | |
On June 1, 2007, the Company adopted the provisions of ACS Topic 740. Other long-term liabilities related to uncertain tax positions were $0 as of both November 30, 2013 and May 31, 2013. Interest and penalties associated with uncertain tax positions are recognized as components of the “Provision for income taxes.” The liability for payment of interest and penalties was $0 as of November 30, 2013 and May 31, 2013. | |
Several tax years are subject to examination by major tax jurisdictions. In the United States, federal tax years for Fiscal 2010 and after are subject to examination. In the United Kingdom, tax years for Fiscal 2012 and after are subject to examination. In Canada, tax years for Fiscal 2005 and after are subject to examination. | |
Effective Tax Rate | |
The effective tax rate on consolidated net income (loss) was 1.7% for the six months ended November 30, 2013. The effective tax rate on consolidated net income differs from the federal statutory tax rate primarily due to the amount of income from foreign jurisdictions, changes in the deferred tax valuation allowance and certain expenses not being deductible for income tax reporting purposes. Management believes the effective tax rate for Fiscal 2014 will be approximately 6.2% due to the items noted above. |
Segments_of_Business
Segments of Business | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segments of Business | ' | ||||||||||||||||
Note 7: | |||||||||||||||||
SEGMENTS OF BUSINESS | |||||||||||||||||
The Company has two reportable business segments: dynamic balancing systems for the machine tool industry (Balancer) and laser-based test and measurement systems (Measurement). The Company operates in three principal geographic markets: North America, Europe and Asia. | |||||||||||||||||
Segment Information | |||||||||||||||||
Three Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balancer | Measurement | Balancer | Measurement | ||||||||||||||
Gross sales | $ | 2,233,836 | $ | 1,182,514 | $ | 2,081,866 | $ | 854,077 | |||||||||
Intercompany sales | (267,914 | ) | (5,384 | ) | (220,205 | ) | (13,479 | ) | |||||||||
Net sales | $ | 1,965,922 | $ | 1,177,130 | $ | 1,861,661 | $ | 840,598 | |||||||||
Operating income (loss) | $ | (127,360 | ) | $ | (23,914 | ) | $ | 6,380 | $ | (119,435 | ) | ||||||
Depreciation expense | $ | 37,848 | $ | 15,218 | $ | 35,252 | $ | 18,083 | |||||||||
Amortization expense | $ | 0 | $ | 33,658 | $ | 0 | $ | 33,658 | |||||||||
Capital expenditures | $ | 1,093 | $ | 0 | $ | 0 | $ | 87,428 | |||||||||
Six Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balancer | Measurement | Balancer | Measurement | ||||||||||||||
Gross sales | $ | 4,402,408 | $ | 2,193,330 | $ | 4,515,570 | $ | 2,286,444 | |||||||||
Intercompany sales | (534,670 | ) | (18,569 | ) | (390,886 | ) | (28,204 | ) | |||||||||
Net sales | $ | 3,867,738 | $ | 2,174,761 | $ | 4,124,684 | $ | 2,258,240 | |||||||||
Operating income (loss) | $ | (240,376 | ) | $ | (58,242 | ) | $ | 99,239 | $ | (86,470 | ) | ||||||
Depreciation expense | $ | 76,147 | $ | 31,840 | $ | 70,214 | $ | 36,111 | |||||||||
Amortization expense | $ | 0 | $ | 67,317 | $ | 0 | $ | 67,317 | |||||||||
Capital expenditures | $ | 1,436 | $ | 0 | $ | 39,830 | $ | 102,787 | |||||||||
Geographic Information | |||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
North America | $ | 1,811,421 | $ | 1,701,398 | $ | 3,692,273 | $ | 4,092,619 | |||||||||
Europe | 566,210 | 380,988 | 875,341 | 671,493 | |||||||||||||
Asia | 695,396 | 514,866 | 1,373,181 | 1,441,937 | |||||||||||||
Other markets | 70,025 | 105,007 | 101,704 | 176,875 | |||||||||||||
Total Net Sales | $ | 3,143,052 | $ | 2,702,259 | $ | 6,042,499 | $ | 6,382,924 | |||||||||
Three Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
United States | Europe | United States | Europe | ||||||||||||||
Operating income (loss) | $ | (127,149 | ) | $ | (24,125 | ) | $ | (105,732 | ) | $ | (7,323 | ) | |||||
Depreciation expense | $ | 53,066 | $ | 0 | $ | 53,335 | $ | 0 | |||||||||
Amortization expense | $ | 33,658 | $ | 0 | $ | 33,658 | $ | 0 | |||||||||
Capital expenditures | $ | 1,093 | $ | 0 | $ | 87,428 | $ | 0 | |||||||||
Six Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
United States | Europe | United States | Europe | ||||||||||||||
Operating income (loss) | $ | (256,741 | ) | $ | (41,877 | ) | $ | 45,378 | $ | (32,609 | ) | ||||||
Depreciation expense | $ | 107,987 | $ | 0 | $ | 106,325 | $ | 0 | |||||||||
Amortization expense | $ | 67,317 | $ | 0 | $ | 67,317 | $ | 0 | |||||||||
Capital expenditures | $ | 1,436 | $ | 0 | $ | 142,617 | $ | 0 | |||||||||
Note – Europe is defined as the European subsidiary, Schmitt Europe, Ltd. | |||||||||||||||||
Segment and Geographic Assets | |||||||||||||||||
November 30, 2013 | May 31, 2013 | ||||||||||||||||
Segment assets to total assets | |||||||||||||||||
Balancer | $ | 4,944,091 | $ | 5,489,976 | |||||||||||||
Measurement | 4,272,386 | 4,177,456 | |||||||||||||||
Corporate assets | 2,137,243 | 1,957,166 | |||||||||||||||
Total assets | $ | 11,353,720 | $ | 11,624,598 | |||||||||||||
Geographic assets to long-lived assets | |||||||||||||||||
United States | $ | 1,228,339 | $ | 1,334,890 | |||||||||||||
Europe | 0 | 0 | |||||||||||||||
Total assets | $ | 1,228,339 | $ | 1,334,890 | |||||||||||||
Geographic assets to total assets | |||||||||||||||||
United States | $ | 10,262,117 | $ | 11,021,901 | |||||||||||||
Europe | 1,091,603 | 602,697 | |||||||||||||||
Total assets | $ | 11,353,720 | $ | 11,624,598 | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Nov. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial information included herein has been prepared by Schmitt Industries, Inc. (the Company or Schmitt) and its wholly owned subsidiaries. In the opinion of management, the accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly its financial position as of November 30, 2013 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2013 has been derived from the Annual Report on Form 10-K for the fiscal year ended May 31, 2013. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2013. Operating results for the interim periods presented are not necessarily indicative of the results that may be experienced for the fiscal year ending May 31, 2014. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue for sales and billing for freight charges upon delivery of the product to the customer at a fixed and determinable price with a reasonable assurance of collection, passage of title to the customer as indicated by shipping terms and fulfilment of all significant obligations, pursuant to the guidance provided by Accounting Standards Codification (“ASC”) Topic 605. For sales to all customers, including manufacturer representatives, distributors or their third-party customers, these criteria are met at the time product is shipped. When other significant obligations remain after products are delivered, revenue is recognized only after such obligations are fulfilled. In addition, judgments are required in evaluating the credit worthiness of our customers. Credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured. | |
Financial Instruments | ' |
Financial Instruments | |
The carrying value of all other financial instruments potentially subject to valuation risk (principally consisting of cash and cash equivalents, accounts receivable, accounts payable and the line of credit) approximates fair value because of their short-term maturities. |
Inventory_Tables
Inventory (Tables) | 6 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
As of November 30, 2013 and May 31, 2013, inventories consisted of: | |||||||||
November 30, 2013 | May 31, 2013 | ||||||||
Raw materials | $ | 2,014,146 | $ | 2,225,295 | |||||
Work-in-process | 924,904 | 1,132,534 | |||||||
Finished goods | 1,726,635 | 1,696,258 | |||||||
$ | 4,665,685 | $ | 5,054,087 | ||||||
Stock_Options_and_StockBased_C1
Stock Options and Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |||||||||||||||||||||||
Schedule of Outstanding Stock Options | ' | |||||||||||||||||||||||
The Company estimates that $74,030 will be recorded as additional stock-based compensation expense for all options that were outstanding as of November 30, 2013, but which were not yet vested. | ||||||||||||||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||||||||||||
Number | Weighted | Weighted | Number of | Weighted | ||||||||||||||||||||
of Shares | Average | Average | Shares | Average | ||||||||||||||||||||
Exercise Price | Remaining | Exercise Price | ||||||||||||||||||||||
Contractual | ||||||||||||||||||||||||
Life (yrs) | ||||||||||||||||||||||||
41,666 | $ | 2.3 | 0.5 | 41,666 | $ | 2.3 | ||||||||||||||||||
35,000 | 2.53 | 9.8 | 0 | N/A | ||||||||||||||||||||
25,000 | 2.9 | 9.4 | 0 | N/A | ||||||||||||||||||||
130,000 | 3.65 | 7.5 | 108,332 | 3.65 | ||||||||||||||||||||
5,000 | 5.8 | 1.9 | 5,000 | 5.8 | ||||||||||||||||||||
50,000 | 6.25 | 4.5 | 50,000 | 6.25 | ||||||||||||||||||||
286,666 | 3.74 | 6.3 | 204,998 | 4.06 | ||||||||||||||||||||
Schedule of Options Granted, Exercised, and Forfeited or Canceled | ' | |||||||||||||||||||||||
Options granted, exercised, and forfeited or canceled under the Company’s stock option plan during the three and six months ended November 30, 2013 are summarized as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
November 30, 2013 | November 30, 2013 | |||||||||||||||||||||||
Number | Weighted | Number | Weighted | |||||||||||||||||||||
of Shares | Average | of Shares | Average | |||||||||||||||||||||
Exercise Price | Exercise Price | |||||||||||||||||||||||
Options outstanding - beginning of period | 251,666 | $ | 3.91 | 301,666 | $ | 4.06 | ||||||||||||||||||
Options granted | 35,000 | 2.53 | 35,000 | 2.53 | ||||||||||||||||||||
Options exercised | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Options forfeited/canceled | 0 | 0 | (50,000 | ) | 4.82 | |||||||||||||||||||
Options outstanding - end of period | 286,666 | 3.74 | 286,666 | 3.74 | ||||||||||||||||||||
EPS_Reconciliation_Tables
EPS Reconciliation (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings per Share | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average shares (basic) | 2,990,910 | 2,990,910 | 2,990,910 | 2,990,910 | |||||||||||||
Effect of dilutive stock options | 0 | 0 | 0 | 12,918 | |||||||||||||
Weighted average shares (diluted) | 2,990,910 | 2,990,910 | 2,990,910 | 3,003,828 | |||||||||||||
Segments_of_Business_Tables
Segments of Business (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
Three Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balancer | Measurement | Balancer | Measurement | ||||||||||||||
Gross sales | $ | 2,233,836 | $ | 1,182,514 | $ | 2,081,866 | $ | 854,077 | |||||||||
Intercompany sales | (267,914 | ) | (5,384 | ) | (220,205 | ) | (13,479 | ) | |||||||||
Net sales | $ | 1,965,922 | $ | 1,177,130 | $ | 1,861,661 | $ | 840,598 | |||||||||
Operating income (loss) | $ | (127,360 | ) | $ | (23,914 | ) | $ | 6,380 | $ | (119,435 | ) | ||||||
Depreciation expense | $ | 37,848 | $ | 15,218 | $ | 35,252 | $ | 18,083 | |||||||||
Amortization expense | $ | 0 | $ | 33,658 | $ | 0 | $ | 33,658 | |||||||||
Capital expenditures | $ | 1,093 | $ | 0 | $ | 0 | $ | 87,428 | |||||||||
Six Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balancer | Measurement | Balancer | Measurement | ||||||||||||||
Gross sales | $ | 4,402,408 | $ | 2,193,330 | $ | 4,515,570 | $ | 2,286,444 | |||||||||
Intercompany sales | (534,670 | ) | (18,569 | ) | (390,886 | ) | (28,204 | ) | |||||||||
Net sales | $ | 3,867,738 | $ | 2,174,761 | $ | 4,124,684 | $ | 2,258,240 | |||||||||
Operating income (loss) | $ | (240,376 | ) | $ | (58,242 | ) | $ | 99,239 | $ | (86,470 | ) | ||||||
Depreciation expense | $ | 76,147 | $ | 31,840 | $ | 70,214 | $ | 36,111 | |||||||||
Amortization expense | $ | 0 | $ | 67,317 | $ | 0 | $ | 67,317 | |||||||||
Capital expenditures | $ | 1,436 | $ | 0 | $ | 39,830 | $ | 102,787 | |||||||||
Geographic Information | ' | ||||||||||||||||
Geographic Information | |||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
North America | $ | 1,811,421 | $ | 1,701,398 | $ | 3,692,273 | $ | 4,092,619 | |||||||||
Europe | 566,210 | 380,988 | 875,341 | 671,493 | |||||||||||||
Asia | 695,396 | 514,866 | 1,373,181 | 1,441,937 | |||||||||||||
Other markets | 70,025 | 105,007 | 101,704 | 176,875 | |||||||||||||
Total Net Sales | $ | 3,143,052 | $ | 2,702,259 | $ | 6,042,499 | $ | 6,382,924 | |||||||||
Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas | ' | ||||||||||||||||
Three Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
United States | Europe | United States | Europe | ||||||||||||||
Operating income (loss) | $ | (127,149 | ) | $ | (24,125 | ) | $ | (105,732 | ) | $ | (7,323 | ) | |||||
Depreciation expense | $ | 53,066 | $ | 0 | $ | 53,335 | $ | 0 | |||||||||
Amortization expense | $ | 33,658 | $ | 0 | $ | 33,658 | $ | 0 | |||||||||
Capital expenditures | $ | 1,093 | $ | 0 | $ | 87,428 | $ | 0 | |||||||||
Six Months Ended November 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
United States | Europe | United States | Europe | ||||||||||||||
Operating income (loss) | $ | (256,741 | ) | $ | (41,877 | ) | $ | 45,378 | $ | (32,609 | ) | ||||||
Depreciation expense | $ | 107,987 | $ | 0 | $ | 106,325 | $ | 0 | |||||||||
Amortization expense | $ | 67,317 | $ | 0 | $ | 67,317 | $ | 0 | |||||||||
Capital expenditures | $ | 1,436 | $ | 0 | $ | 142,617 | $ | 0 | |||||||||
Segment and Geographic Assets | ' | ||||||||||||||||
Segment and Geographic Assets | |||||||||||||||||
November 30, 2013 | May 31, 2013 | ||||||||||||||||
Segment assets to total assets | |||||||||||||||||
Balancer | $ | 4,944,091 | $ | 5,489,976 | |||||||||||||
Measurement | 4,272,386 | 4,177,456 | |||||||||||||||
Corporate assets | 2,137,243 | 1,957,166 | |||||||||||||||
Total assets | $ | 11,353,720 | $ | 11,624,598 | |||||||||||||
Geographic assets to long-lived assets | |||||||||||||||||
United States | $ | 1,228,339 | $ | 1,334,890 | |||||||||||||
Europe | 0 | 0 | |||||||||||||||
Total assets | $ | 1,228,339 | $ | 1,334,890 | |||||||||||||
Geographic assets to total assets | |||||||||||||||||
United States | $ | 10,262,117 | $ | 11,021,901 | |||||||||||||
Europe | 1,091,603 | 602,697 | |||||||||||||||
Total assets | $ | 11,353,720 | $ | 11,624,598 | |||||||||||||
Inventory_Schedule_of_Inventor
Inventory - Schedule of Inventories (Detail) (USD $) | Nov. 30, 2013 | 31-May-13 |
Inventory Net [Abstract] | ' | ' |
Raw materials | $2,014,146 | $2,225,295 |
Work-in-process | 924,904 | 1,132,534 |
Finished goods | 1,726,635 | 1,696,258 |
Inventory Net | $4,665,685 | $5,054,087 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 6 Months Ended | ||
Nov. 30, 2013 | 31-May-13 | Jan. 31, 2012 | |
Line of Credit Facility [Line Items] | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | $2,000,000 | ' | $1,000,000 |
Bank's prime rate | 3.25% | ' | ' |
Interest rate description | 'LIBOR plus 2.0% | ' | ' |
Line of credit facility, amount outstanding | $400,000 | $0 | ' |
LIBOR plus rate [Member] | Minimum [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
LIBOR plus rate | 2.00% | ' | ' |
LIBOR plus rate [Member] | Maximum [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
LIBOR plus rate | 2.17% | ' | ' |
Stock_Options_and_StockBased_C2
Stock Options and Stock-Based Compensation - Additional Information (Detail) (USD $) | 6 Months Ended | |||
Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | 31-May-13 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' | ' |
Expected dividend rate | 0.00% | ' | ' | ' |
Options issued | 35,000 | 0 | ' | ' |
Outstanding stock options, total | 286,666 | ' | 251,666 | 301,666 |
Vested and exercisable stock options | 204,998 | ' | ' | ' |
Non-vested shares | 81,668 | ' | ' | ' |
Weighted average exercise price | $3.74 | ' | $3.91 | $4.06 |
Additional stock-based compensation expense | $74,030 | ' | ' | ' |
Stock_Options_and_StockBased_C3
Stock Options and Stock-Based Compensation - Schedule of Outstanding Stock Options (Detail) (USD $) | 6 Months Ended | ||
Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Outstanding Options | 286,666 | 251,666 | 301,666 |
Weighted Average Exercise Price, Outstanding Options | $3.74 | $3.91 | $4.06 |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | '6 years 3 months 18 days | ' | ' |
Exercisable Options, Number of Shares | 204,998 | ' | ' |
Exercisable Options, Weighted Average Exercise Price | $4.06 | ' | ' |
Options 1 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Outstanding Options | 41,666 | ' | ' |
Weighted Average Exercise Price, Outstanding Options | $2.30 | ' | ' |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | '6 months | ' | ' |
Exercisable Options, Number of Shares | 41,666 | ' | ' |
Exercisable Options, Weighted Average Exercise Price | $2.30 | ' | ' |
Options 2 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Outstanding Options | 35,000 | ' | ' |
Weighted Average Exercise Price, Outstanding Options | $2.53 | ' | ' |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | '9 years 9 months 18 days | ' | ' |
Exercisable Options, Number of Shares | 0 | ' | ' |
Options 3 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Outstanding Options | 25,000 | ' | ' |
Weighted Average Exercise Price, Outstanding Options | $2.90 | ' | ' |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | '9 years 4 months 24 days | ' | ' |
Exercisable Options, Number of Shares | 0 | ' | ' |
Options 4 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Outstanding Options | 130,000 | ' | ' |
Weighted Average Exercise Price, Outstanding Options | $3.65 | ' | ' |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | '7 years 6 months | ' | ' |
Exercisable Options, Number of Shares | 108,332 | ' | ' |
Exercisable Options, Weighted Average Exercise Price | $3.65 | ' | ' |
Options 5 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Outstanding Options | 5,000 | ' | ' |
Weighted Average Exercise Price, Outstanding Options | $5.80 | ' | ' |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | '1 year 10 months 24 days | ' | ' |
Exercisable Options, Number of Shares | 5,000 | ' | ' |
Exercisable Options, Weighted Average Exercise Price | $5.80 | ' | ' |
Options 6 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Outstanding Options | 50,000 | ' | ' |
Weighted Average Exercise Price, Outstanding Options | $6.25 | ' | ' |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | '4 years 6 months | ' | ' |
Exercisable Options, Number of Shares | 50,000 | ' | ' |
Exercisable Options, Weighted Average Exercise Price | $6.25 | ' | ' |
Stock_Options_and_StockBased_C4
Stock Options and Stock-Based Compensation - Schedule of Options Granted, Exercised, and Forfeited or Canceled (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
Nov. 30, 2013 | Nov. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Number of Shares, Options outstanding - beginning of period | 251,666 | 301,666 |
Number of Shares, Options granted | 35,000 | 35,000 |
Number of Shares, Options exercised | 0 | 0 |
Number of Shares, Options forfeited/canceled | 0 | -50,000 |
Number of Shares, Options outstanding - end of period | 286,666 | 286,666 |
Weighted Average Exercise Price, Options outstanding - beginning of period | $3.91 | $4.06 |
Weighted Average Exercise Price, Options granted | $2.53 | $2.53 |
Weighted Average Exercise Price, Options exercised | $0 | $0 |
Weighted Average Exercise Price, Options forfeited/canceled | $0 | $4.82 |
Weighted Average Exercise Price, Options outstanding - end of period | $3.74 | $3.74 |
EPS_Reconciliation_Schedule_of
EPS Reconciliation - Schedule of Earnings per Share (Detail) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted average shares (basic) | 2,990,910 | 2,990,910 | 2,990,910 | 2,990,910 |
Effect of dilutive stock options | 0 | 0 | 0 | 12,918 |
Weighted average shares (diluted) | 2,990,910 | 2,990,910 | 2,990,910 | 3,003,828 |
EPS_Reconciliation_Additional_
EPS Reconciliation - Additional Information (Detail) | 6 Months Ended |
Nov. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
Antidilutive common stock equivalents | 0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||
Nov. 30, 2013 | 31-May-13 | 31-May-14 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | |
Scenario, Forecast [Member] | Domestic Tax Authority [Member] | Foreign Tax Authority [Member] | Canada [Member] | |||
Minimum [Member] | Minimum [Member] | Minimum [Member] | ||||
Income Tax [Line Items] | ' | ' | ' | ' | ' | ' |
Other long-term liabilities related to uncertain tax positions | $0 | $0 | ' | ' | ' | ' |
Liability for payment of interest and penalties | $0 | $0 | ' | ' | ' | ' |
Income tax examination period under examination | ' | ' | ' | '2010 | '2012 | '2005 |
Effective tax rate on consolidated net income (loss) | 1.70% | ' | ' | ' | ' | ' |
Effective tax rate for Fiscal 2014 | ' | ' | 6.20% | ' | ' | ' |
Segments_of_Business_Additiona
Segments of Business - Additional Information (Detail) | 6 Months Ended |
Nov. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Reportable business segments | 2 |
Segments_of_Business_Segment_I
Segments of Business - Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $3,143,052 | $2,702,259 | $6,042,499 | $6,382,924 |
Operating income (loss) | -151,274 | -113,055 | -298,618 | 12,769 |
Balancer [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Gross sales | 2,233,836 | 2,081,866 | 4,402,408 | 4,515,570 |
Net sales | 1,965,922 | 1,861,661 | 3,867,738 | 4,124,684 |
Operating income (loss) | -127,360 | 6,380 | -240,376 | 99,239 |
Depreciation expense | 37,848 | 35,252 | 76,147 | 70,214 |
Amortization expense | 0 | 0 | 0 | 0 |
Capital expenditures | 1,093 | 0 | 1,436 | 39,830 |
Balancer [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Intercompany sales | -267,914 | -220,205 | -534,670 | -390,886 |
Measurement [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Gross sales | 1,182,514 | 854,077 | 2,193,330 | 2,286,444 |
Net sales | 1,177,130 | 840,598 | 2,174,761 | 2,258,240 |
Operating income (loss) | -23,914 | -119,435 | -58,242 | -86,470 |
Depreciation expense | 15,218 | 18,083 | 31,840 | 36,111 |
Amortization expense | 33,658 | 33,658 | 67,317 | 67,317 |
Capital expenditures | 0 | 87,428 | 0 | 102,787 |
Measurement [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Intercompany sales | ($5,384) | ($13,479) | ($18,569) | ($28,204) |
Segments_of_Business_Geographi
Segments of Business - Geographic Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Net Sales | $3,143,052 | $2,702,259 | $6,042,499 | $6,382,924 |
North America [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Net Sales | 1,811,421 | 1,701,398 | 3,692,273 | 4,092,619 |
Europe [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Net Sales | 566,210 | 380,988 | 875,341 | 671,493 |
Asia [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Net Sales | 695,396 | 514,866 | 1,373,181 | 1,441,937 |
Other markets [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Net Sales | $70,025 | $105,007 | $101,704 | $176,875 |
Segments_of_Business_Segment_I1
Segments of Business - Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Operating income (loss) | ($151,274) | ($113,055) | ($298,618) | $12,769 |
United States [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Operating income (loss) | -127,149 | -105,732 | -256,741 | 45,378 |
Depreciation expense | 53,066 | 53,335 | 107,987 | 106,325 |
Amortization expense | 33,658 | 33,658 | 67,317 | 67,317 |
Capital expenditures | 1,093 | 87,428 | 1,436 | 142,617 |
Europe [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Operating income (loss) | -24,125 | -7,323 | -41,877 | -32,609 |
Depreciation expense | 0 | 0 | 0 | 0 |
Amortization expense | 0 | 0 | 0 | 0 |
Capital expenditures | $0 | $0 | $0 | $0 |
Segments_of_Business_Segment_a
Segments of Business - Segment and Geographic Assets (Detail) (USD $) | Nov. 30, 2013 | 31-May-13 |
Segment Reporting Information [Line Items] | ' | ' |
Segment assets to total assets | $11,353,720 | $11,624,598 |
Geographic assets to long-lived assets | 1,228,339 | 1,334,890 |
Geographic assets to total assets | 11,353,720 | 11,624,598 |
United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Geographic assets to long-lived assets | 1,228,339 | 1,334,890 |
Geographic assets to total assets | 10,262,117 | 11,021,901 |
Europe [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Geographic assets to long-lived assets | 0 | 0 |
Geographic assets to total assets | 1,091,603 | 602,697 |
Operating Segments [Member] | Balancer [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment assets to total assets | 4,944,091 | 5,489,976 |
Operating Segments [Member] | Measurement [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment assets to total assets | 4,272,386 | 4,177,456 |
Corporate assets [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment assets to total assets | $2,137,243 | $1,957,166 |