Schmitt Industries (SMIT) 10-Q 8 Oct 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Aug. 31, 2015	Sep. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	SMIT
Entity Registrant Name	SCHMITT INDUSTRIES INC
Entity Central Index Key	922,612
Current Fiscal Year End Date	--05-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,995,910

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Aug. 31, 2015	May. 31, 2015
Current assets
Cash and cash equivalents	$ 1,491,823	$ 1,795,654
Accounts receivable, net	2,604,980	2,660,426
Inventories	4,776,612	4,557,567
Prepaid expenses	146,638	153,970
Income taxes receivable	2,239	1,029
Total current assets	9,022,292	9,168,646
Property and equipment, net	1,073,513	1,110,878
Other assets
Intangible assets, net	796,529	824,411
TOTAL ASSETS	10,892,334	11,103,935
Current liabilities
Accounts payable	724,562	834,002
Accrued commissions	367,649	284,944
Accrued payroll liabilities	132,172	140,872
Other accrued liabilities	342,101	355,513
Income taxes payable	3,750	0
Total current liabilities	1,570,234	1,615,331
Stockholders' equity
Common stock, no par value, 20,000,000 shares authorized, 2,995,910 shares issued and outstanding at August 31, 2015 and May 31, 2015	10,533,523	10,511,324
Accumulated other comprehensive loss	(360,586)	(366,945)
Accumulated deficit	(850,837)	(655,775)
Total stockholders' equity	9,322,100	9,488,604
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 10,892,334	$ 11,103,935

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Aug. 31, 2015	May. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	2,995,910	2,995,910
Common stock, shares outstanding	2,995,910	2,995,910

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Income Statement [Abstract]
Net sales	$ 3,104,384	$ 3,049,288
Cost of sales	1,661,892	1,585,721
Gross profit	1,442,492	1,463,567
Operating expenses:
General, administration and sales	1,537,882	1,338,024
Research and development	86,912	72,444
Total operating expenses	1,624,794	1,410,468
Operating income (loss)	(182,302)	53,099
Other income (loss), net	(5,920)	1,061
Income (loss) before income taxes	(188,222)	54,160
Provision for income taxes	6,840	2,377
Net income (loss)	$ (195,062)	$ 51,783
Net income (loss) per common share:
Basic	$ (0.07)	$ 0.02
Weighted average number of common shares, basic	2,995,910	2,995,910
Diluted	$ (0.07)	$ 0.02
Weighted average number of common shares, diluted	2,995,910	2,999,172
Comprehensive income (loss)
Net income (loss)	$ (195,062)	$ 51,783
Foreign currency translation adjustment	6,359	(28,124)
Total comprehensive income (loss)	$ (188,703)	$ 23,659

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Cash flows relating to operating activities
Net income (loss)	$ (195,062)	$ 51,783
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	65,247	74,688
Stock based compensation	22,199	9,858
(Increase) decrease in:
Accounts receivable	59,376	(88,160)
Inventories	(218,283)	(21,668)
Prepaid expenses	7,444	21,778
Income taxes receivable	(1,210)	(994)
Increase (decrease) in:
Accounts payable	(110,002)	102,923
Accrued liabilities and customer deposits	60,071	102,785
Income taxes payable	3,750	0
Net cash provided by (used in) operating activities	(306,470)	252,993
Cash flows relating to investing activities
Purchases of property and equipment	0	(8,573)
Net cash used in investing activities	0	(8,573)
Effect of foreign exchange translation on cash	2,639	(24,292)
Increase (decrease) in cash and cash equivalents	(303,831)	220,128
Cash and cash equivalents, beginning of period	1,795,654	1,510,565
Cash and cash equivalents, end of period	1,491,823	1,730,693
Supplemental disclosure of cash flow information
Cash paid during the period for income taxes	4,300	1,810
Cash paid during the period for interest	$ 709	$ 1,125

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders Equity - 3 months ended Aug. 31, 2015 - USD ($)	Total	Common stock [Member]	Accumulated other comprehensive loss [Member]	Accumulated deficit [Member]
Beginning balance at May. 31, 2015	$ 9,488,604	$ 10,511,324	$ (366,945)	$ (655,775)
Beginning balance, shares at May. 31, 2015	2,995,910	2,995,910
Stock-based compensation	$ 22,199	$ 22,199	0	0
Net income (loss)	(195,062)	0	0	(195,062)
Other comprehensive income (loss)	6,359	0	6,359	0
Ending balance at Aug. 31, 2015	$ 9,322,100	$ 10,533,523	$ (360,586)	$ (850,837)
Ending balance, shares at Aug. 31, 2015	2,995,910	2,995,910

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Aug. 31, 2015
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 August 31, 2015 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2015 has been derived from the Annual Report on Form 10-K for the fiscal year ended May 31, 2015. 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, 2015. 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, 2016. 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 fulfillment 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 financial instruments potentially subject to valuation risk (principally consisting of cash and cash equivalents, accounts receivable and accounts payable) also approximates fair value because of their short-term maturities. Accounts Receivable The Company maintains credit limits for all customers based upon several factors, including but not limited to financial condition and stability, payment history, published credit reports and use of credit references. Management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value. This review includes using accounts receivable agings, other operating trends and relevant business conditions, including general economic factors, as they relate to each of the Company’s domestic and international customers. If these analyses lead management to the conclusion that potential significant accounts are uncollectible, a reserve is provided. The allowance for doubtful accounts was $56,598 and $56,370 as of August 31, 2015 and May 31, 2015, respectively. Inventories Inventories are 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 August 31, 2015 and May 31, 2015, inventories consisted of: August 31, 2015 May 31, 2015 Raw materials $ 2,143,842 $ 1,845,037 Work-in-process 965,238 836,346 Finished goods 1,667,532 1,876,184 $ 4,776,612 $ 4,557,567 Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years for furniture, fixtures and equipment; three years for vehicles; and twenty-five years for buildings and improvements. As of August 31, 2015 and May 31, 2015, property and equipment consisted of: August 31, 2015 May 31, 2015 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,381,786 1,381,691 Vehicles 96,587 96,587 3,591,897 3,591,802 Less accumulated depreciation (2,518,384 ) (2,480,924 ) $ 1,073,513 $ 1,110,878

Stock Options and Stock-Based C

Stock Options and Stock-Based Compensation	3 Months Ended
	Aug. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Stock-Based Compensation	Note 2: 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. • Expected Life. • Expected Volatility. • Expected Dividend Yield. • Expected Forfeitures. To determine stock-based compensation expense recognized for those options granted during the three months ended August 31, 2015 and 2014, the Company has computed the value of all stock options granted using the Black-Scholes option pricing model. No options were granted during the three months ended August 31, 2015 and 2014. At August 31, 2015, the Company had a total of 332,500 outstanding stock options (213,335 vested and exercisable and 119,165 non-vested) with a weighted average exercise price of $3.68. The Company estimates that $62,699 will be recorded as additional stock-based compensation expense over a weighted-average period of 1.5 years for all options that were outstanding as of August 31, 2015, but which were not yet vested. Outstanding Options Exercisable Options Number of Weighted Weighted Number of Weighted 35,000 $ 2.53 8.1 11,668 $ 2.53 112,500 2.84 8.8 16,667 2.90 130,000 3.65 5.8 130,000 3.65 5,000 5.80 0.2 5,000 5.80 50,000 6.25 2.8 50,000 6.25 332,500 3.68 6.5 213,335 4.19 Options granted, exercised, and forfeited or canceled under the Company’s stock option plan during the three months ended August 31, 2015 are summarized as follows: Three Months Ended Number of Weighted Options outstanding - beginning of period 332,500 $ 3.68 Options granted 0 0 Options exercised 0 0 Options forfeited/canceled 0 0 Options outstanding - end of period 332,500 3.68

EPS Reconciliation

EPS Reconciliation	3 Months Ended
	Aug. 31, 2015
Earnings Per Share [Abstract]
EPS Reconciliation	Note 3: EPS RECONCILIATION Three Months Ended 2015 2014 Weighted average shares (basic) 2,995,910 2,995,910 Effect of dilutive stock options 0 3,262 Weighted average shares (diluted) 2,995,910 2,999,172 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	3 Months Ended
	Aug. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 4: 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. Other long-term liabilities related to tax contingencies were $0 as of both August 31, 2015 and May 31, 2015. 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 August 31 2015 and May 31, 2015. Several tax years are subject to examination by major tax jurisdictions. In the United States, federal tax years for Fiscal 2012 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 loss was 3.6% for the three months ended August 31, 2015. The effective tax rate on consolidated net loss 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 2016 will be approximately 5.4% due to the items noted above.

Segments of Business

Segments of Business	3 Months Ended
	Aug. 31, 2015
Segment Reporting [Abstract]
Segments of Business	Note 5: SEGMENTS OF BUSINESS The Company has two reportable business segments: dynamic balancing and process control systems for the machine tool industry (Balancer) and laser-based test and measurement systems and ultrasonic measurement products (Measurement). The Company operates in three principal geographic markets: North America, Europe and Asia. Segment Information Three Months Ended August 31, 2015 2014 Balancer Measurement Balancer Measurement Gross sales $ 2,226,247 $ 1,186,065 $ 2,016,435 $ 1,204,470 Intercompany sales (298,752 ) (9,176 ) (176,265 ) 4,648 Net sales $ 1,927,495 $ 1,176,889 $ 1,840,170 $ 1,209,118 Operating income (loss) $ (133,494 ) $ (48,808 ) $ (71,425 ) $ 124,524 Depreciation expense $ 26,810 $ 10,555 $ 29,801 $ 11,228 Amortization expense $ 0 $ 27,882 $ 0 $ 33,659 Capital expenditures $ 0 $ 0 $ 8,573 $ 0 Geographic Information – Net Sales by Geographic Area Three Months Ended August 31, 2015 2014 North America $ 2,085,315 $ 2,018,655 Europe 252,311 215,236 Asia 689,270 764,437 Other markets 77,488 50,960 Total net sales $ 3,104,384 $ 3,049,288 Three Months Ended August 31, 2015 2014 United States Europe United States Europe Operating income (loss) $ (125,499 ) (56,803 ) $ 65,940 $ (12,841 ) Depreciation expense $ 37,365 $ 0 $ 41,029 $ 0 Amortization expense $ 27,882 $ 0 $ 33,659 $ 0 Capital expenditures $ 0 $ 0 $ 8,573 $ 0 Note — Europe is defined as the European subsidiary, Schmitt Europe, Ltd. Segment and Geographic Assets August 31, 2015 May 31, 2015 Segment assets to total assets Balancer $ 5,132,062 $ 5,059,567 Measurement 4,266,210 4,247,684 Corporate assets 1,494,062 1,796,684 Total assets $ 10,892,334 $ 11,103,935 Geographic assets to long-lived assets United States $ 1,073,513 $ 1,110,878 Europe 0 0 Total long-lived assets $ 1,073,513 $ 1,110,878 Geographic assets to total assets United States $ 9,804,208 $ 10,107,523 Europe 1,088,126 996,412 Total assets $ 10,892,334 $ 11,103,935

Summary of Significant Accoun12

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Aug. 31, 2015
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 August 31, 2015 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2015 has been derived from the Annual Report on Form 10-K for the fiscal year ended May 31, 2015. 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, 2015. 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, 2016.
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 fulfillment 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 financial instruments potentially subject to valuation risk (principally consisting of cash and cash equivalents, accounts receivable and accounts payable) also approximates fair value because of their short-term maturities.
Accounts Receivable	Accounts Receivable The Company maintains credit limits for all customers based upon several factors, including but not limited to financial condition and stability, payment history, published credit reports and use of credit references. Management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value. This review includes using accounts receivable agings, other operating trends and relevant business conditions, including general economic factors, as they relate to each of the Company’s domestic and international customers. If these analyses lead management to the conclusion that potential significant accounts are uncollectible, a reserve is provided. The allowance for doubtful accounts was $56,598 and $56,370 as of August 31, 2015 and May 31, 2015, respectively.
Inventories	Inventories Inventories are 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 August 31, 2015 and May 31, 2015, inventories consisted of: August 31, 2015 May 31, 2015 Raw materials $ 2,143,842 $ 1,845,037 Work-in-process 965,238 836,346 Finished goods 1,667,532 1,876,184 $ 4,776,612 $ 4,557,567
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years for furniture, fixtures and equipment; three years for vehicles; and twenty-five years for buildings and improvements. As of August 31, 2015 and May 31, 2015, property and equipment consisted of: August 31, 2015 May 31, 2015 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,381,786 1,381,691 Vehicles 96,587 96,587 3,591,897 3,591,802 Less accumulated depreciation (2,518,384 ) (2,480,924 ) $ 1,073,513 $ 1,110,878

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Aug. 31, 2015
Accounting Policies [Abstract]
Inventories	As of August 31, 2015 and May 31, 2015, inventories consisted of: August 31, 2015 May 31, 2015 Raw materials $ 2,143,842 $ 1,845,037 Work-in-process 965,238 836,346 Finished goods 1,667,532 1,876,184 $ 4,776,612 $ 4,557,567
Summary of Property and Equipment	As of August 31, 2015 and May 31, 2015, property and equipment consisted of: August 31, 2015 May 31, 2015 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,381,786 1,381,691 Vehicles 96,587 96,587 3,591,897 3,591,802 Less accumulated depreciation (2,518,384 ) (2,480,924 ) $ 1,073,513 $ 1,110,878

Stock Options and Stock-Based14

Stock Options and Stock-Based Compensation (Tables)	3 Months Ended
	Aug. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Outstanding Stock Options	Outstanding Options Exercisable Options Number of Weighted Weighted Number of Weighted 35,000 $ 2.53 8.1 11,668 $ 2.53 112,500 2.84 8.8 16,667 2.90 130,000 3.65 5.8 130,000 3.65 5,000 5.80 0.2 5,000 5.80 50,000 6.25 2.8 50,000 6.25 332,500 3.68 6.5 213,335 4.19
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 months ended August 31, 2015 are summarized as follows: Three Months Ended Number of Weighted Options outstanding - beginning of period 332,500 $ 3.68 Options granted 0 0 Options exercised 0 0 Options forfeited/canceled 0 0 Options outstanding - end of period 332,500 3.68

EPS Reconciliation (Tables)

EPS Reconciliation (Tables)	3 Months Ended
	Aug. 31, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	Three Months Ended 2015 2014 Weighted average shares (basic) 2,995,910 2,995,910 Effect of dilutive stock options 0 3,262 Weighted average shares (diluted) 2,995,910 2,999,172

Segments of Business (Tables)

Segments of Business (Tables)	3 Months Ended
	Aug. 31, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information Three Months Ended August 31, 2015 2014 Balancer Measurement Balancer Measurement Gross sales $ 2,226,247 $ 1,186,065 $ 2,016,435 $ 1,204,470 Intercompany sales (298,752 ) (9,176 ) (176,265 ) 4,648 Net sales $ 1,927,495 $ 1,176,889 $ 1,840,170 $ 1,209,118 Operating income (loss) $ (133,494 ) $ (48,808 ) $ (71,425 ) $ 124,524 Depreciation expense $ 26,810 $ 10,555 $ 29,801 $ 11,228 Amortization expense $ 0 $ 27,882 $ 0 $ 33,659 Capital expenditures $ 0 $ 0 $ 8,573 $ 0
Geographic Information-Net Sales by Geographic Area	Geographic Information – Net Sales by Geographic Area Three Months Ended August 31, 2015 2014 North America $ 2,085,315 $ 2,018,655 Europe 252,311 215,236 Asia 689,270 764,437 Other markets 77,488 50,960 Total net sales $ 3,104,384 $ 3,049,288
Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas	Three Months Ended August 31, 2015 2014 United States Europe United States Europe Operating income (loss) $ (125,499 ) (56,803 ) $ 65,940 $ (12,841 ) Depreciation expense $ 37,365 $ 0 $ 41,029 $ 0 Amortization expense $ 27,882 $ 0 $ 33,659 $ 0 Capital expenditures $ 0 $ 0 $ 8,573 $ 0
Segment and Geographic Assets	Segment and Geographic Assets August 31, 2015 May 31, 2015 Segment assets to total assets Balancer $ 5,132,062 $ 5,059,567 Measurement 4,266,210 4,247,684 Corporate assets 1,494,062 1,796,684 Total assets $ 10,892,334 $ 11,103,935 Geographic assets to long-lived assets United States $ 1,073,513 $ 1,110,878 Europe 0 0 Total long-lived assets $ 1,073,513 $ 1,110,878 Geographic assets to total assets United States $ 9,804,208 $ 10,107,523 Europe 1,088,126 996,412 Total assets $ 10,892,334 $ 11,103,935

Summary of Significant Accoun17

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2015	May. 31, 2015
Significant Accounting Policies [Line Items]
Allowance for doubtful accounts	$ 56,598	$ 56,370
Vehicles [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	3 years
Building and Improvements [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	25 years
Minimum [Member] | Furniture, Fixtures and Equipment [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	3 years
Maximum [Member] | Furniture, Fixtures and Equipment [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	7 years

Summary of Significant Accoun18

Summary of Significant Accounting Policies - Schedule of Inventories (Detail) - USD ($)	Aug. 31, 2015	May. 31, 2015
Inventory, Net [Abstract]
Raw materials	$ 2,143,842	$ 1,845,037
Work-in-process	965,238	836,346
Finished goods	1,667,532	1,876,184
Inventories	$ 4,776,612	$ 4,557,567

Significant Accounting Policies

Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($)	Aug. 31, 2015	May. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 3,591,897	$ 3,591,802
Less accumulated depreciation	(2,518,384)	(2,480,924)
Property, plant and equipment, net	1,073,513	1,110,878
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	299,000	299,000
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,814,524	1,814,524
Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,381,786	1,381,691
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 96,587	$ 96,587

Stock Options and Stock-Based20

Stock Options and Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014	May. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend rate	0.00%
Options Granted	0	0
Outstanding stock options, total	332,500		332,500
Vested and exercisable stock options	213,335
Non-vested shares	119,165
Weighted average exercise price	$ 3.68		$ 3.68
Additional stock-based compensation expense	$ 62,699
Additional stock-based compensation expense weighted average period	1 year 6 months

Stock Options and Stock-Based21

Stock Options and Stock-Based Compensation - Schedule of Outstanding Stock Options (Detail) - $ / shares	3 Months Ended
	Aug. 31, 2015	May. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	332,500	332,500
Weighted Average Exercise Price, Outstanding Options	$ 3.68	$ 3.68
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	6 years 6 months
Exercisable Options, Number of Shares	213,335
Exercisable Options, Weighted Average Exercise Price	$ 4.19
Options 1 [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	8 years 1 month 6 days
Exercisable Options, Number of Shares	11,668
Exercisable Options, Weighted Average Exercise Price	$ 2.53
Options 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	112,500
Weighted Average Exercise Price, Outstanding Options	$ 2.84
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	8 years 9 months 18 days
Exercisable Options, Number of Shares	16,667
Exercisable Options, Weighted Average Exercise Price	$ 2.90
Options 3 [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	5 years 9 months 18 days
Exercisable Options, Number of Shares	130,000
Exercisable Options, Weighted Average Exercise Price	$ 3.65
Options 4 [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	2 months 12 days
Exercisable Options, Number of Shares	5,000
Exercisable Options, Weighted Average Exercise Price	$ 5.80
Options 5 [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	2 years 9 months 18 days
Exercisable Options, Number of Shares	50,000
Exercisable Options, Weighted Average Exercise Price	$ 6.25

Stock Options and Stock-Based22

Stock Options and Stock-Based Compensation - Schedule of Options Granted, Exercised, and Forfeited or Canceled (Detail) - $ / shares	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Options outstanding - beginning of period	332,500
Number of Shares, Options granted	0	0
Number of Shares, Options exercised	0
Number of Shares, Options forfeited/canceled	0
Number of Shares, Options outstanding - end of period	332,500
Weighted Average Exercise Price, Options outstanding - beginning of period	$ 3.68
Weighted Average Exercise Price, Options granted	0
Weighted Average Exercise Price, Options exercised	0
Weighted Average Exercise Price, Options forfeited/canceled	0
Weighted Average Exercise Price, Options outstanding - end of period	$ 3.68

EPS Reconciliation - Schedule o

EPS Reconciliation - Schedule of Earnings Per Share (Detail) - shares	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Earnings Per Share [Abstract]
Weighted average shares (basic)	2,995,910	2,995,910
Effect of dilutive stock options	0	3,262
Weighted average shares (diluted)	2,995,910	2,999,172

EPS Reconciliation - Additional

EPS Reconciliation - Additional Information (Detail)	3 Months Ended
	Aug. 31, 2015shares
Earnings Per Share [Abstract]
Antidilutive common stock equivalents	0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Aug. 31, 2015	Feb. 29, 2016	May. 31, 2015
Income Tax Contingency [Line Items]
Other long-term liabilities related to uncertain tax positions	$ 0		$ 0
Liability for payment of interest and penalties	$ 0		$ 0
Effective tax rate on consolidated net loss	3.60%
Forecast [Member]
Income Tax Contingency [Line Items]
Effective tax rate for Fiscal 2016		5.40%
Earliest tax year [Member] | Canada [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2,005
Domestic Tax Authority [Member] | Earliest tax year [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2,012
Foreign Tax Authority [Member] | Earliest tax year [Member] | United Kingdom [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2,012

Segments of Business - Addition

Segments of Business - Additional Information (Detail)	3 Months Ended
	Aug. 31, 2015SegmentMarkets
Segment Reporting [Abstract]
Number of reportable business segments | Segment	2
Number of geographic markets in which entity operates	3

Segments of Business - Segment

Segments of Business - Segment Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Segment Reporting Information [Line Items]
Net sales	$ 3,104,384	$ 3,049,288
Operating income (loss)	(182,302)	53,099
Capital expenditures	0	8,573
Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	1,176,889	1,209,118
Operating income (loss)	(48,808)	124,524
Depreciation expense	10,555	11,228
Amortization expense	27,882	33,659
Capital expenditures	0	0
Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	1,927,495	1,840,170
Operating income (loss)	(133,494)	(71,425)
Depreciation expense	26,810	29,801
Amortization expense	0	0
Capital expenditures	0	8,573
Operating Segments [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	1,186,065	1,204,470
Operating Segments [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	2,226,247	2,016,435
Intersegment Eliminations [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	(9,176)	4,648
Intersegment Eliminations [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	$ (298,752)	$ (176,265)

Segments of Business - Geograph

Segments of Business - Geographic Information-Net Sales by Geographic Area (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 3,104,384	$ 3,049,288
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	2,085,315	2,018,655
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	252,311	215,236
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	689,270	764,437
Other markets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 77,488	$ 50,960

Segments of Business - Segmen29

Segments of Business - Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)	$ (182,302)	$ 53,099
Capital expenditures	0	8,573
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)	(125,499)	65,940
Depreciation expense	37,365	41,029
Amortization expense	27,882	33,659
Capital expenditures	0	8,573
Schmitt Europe, Ltd [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)	(56,803)	(12,841)
Depreciation expense	0	0
Amortization expense	0	0
Capital expenditures	$ 0	$ 0

Segments of Business - Segmen30

Segments of Business - Segment and Geographic Assets (Detail) - USD ($)	Aug. 31, 2015	May. 31, 2015
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	$ 10,892,334	$ 11,103,935
Geographic assets to long-lived assets	1,073,513	1,110,878
Segment and geographic assets to total assets	10,892,334	11,103,935
United States [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	9,804,208	10,107,523
Geographic assets to long-lived assets	1,073,513	1,110,878
Segment and geographic assets to total assets	9,804,208	10,107,523
Schmitt Europe, Ltd [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	1,088,126	996,412
Geographic assets to long-lived assets	0	0
Segment and geographic assets to total assets	1,088,126	996,412
Operating Segments [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	5,132,062	5,059,567
Segment and geographic assets to total assets	5,132,062	5,059,567
Operating Segments [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	4,266,210	4,247,684
Segment and geographic assets to total assets	4,266,210	4,247,684
Corporate assets [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	1,494,062	1,796,684
Segment and geographic assets to total assets	$ 1,494,062	$ 1,796,684