Schmitt Industries (SMIT) 10-Q 13 Apr 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Feb. 29, 2016	Mar. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 29, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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 ($)	Feb. 29, 2016	May. 31, 2015
Current assets
Cash and cash equivalents	$ 1,135,365	$ 1,795,654
Accounts receivable, net	1,984,806	2,660,426
Inventories	4,774,992	4,557,567
Prepaid expenses	131,375	153,970
Income taxes receivable	1,343	1,029
Total current assets	8,027,881	9,168,646
Property and equipment, net	995,780	1,110,878
Other assets
Intangible assets, net	740,764	824,411
TOTAL ASSETS	9,764,425	11,103,935
Current liabilities
Accounts payable	642,648	834,002
Accrued commissions	284,836	284,944
Accrued payroll liabilities	129,217	140,872
Other accrued liabilities	275,335	355,513
Total current liabilities	1,332,036	1,615,331
Stockholders' equity
Common stock, no par value, 20,000,000 shares authorized, 2,995,910 shares issued and outstanding at February 29, 2016 and May 31, 2015	10,559,644	10,511,324
Accumulated other comprehensive loss	(421,725)	(366,945)
Accumulated deficit	(1,705,530)	(655,775)
Total stockholders' equity	8,432,389	9,488,604
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 9,764,425	$ 11,103,935

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 29, 2016	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 Loss - USD ($)	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Income Statement [Abstract]
Net sales	$ 2,528,465	$ 3,010,618	$ 8,706,618	$ 9,211,410
Cost of sales	1,465,104	1,660,256	4,924,355	4,843,303
Gross profit	1,063,361	1,350,362	3,782,263	4,368,107
Operating expenses:
General, administration and sales	1,405,632	1,405,140	4,525,149	4,243,492
Research and development	68,023	95,730	227,435	292,825
Total operating expenses	1,473,655	1,500,870	4,752,584	4,536,317
Operating loss	(410,294)	(150,508)	(970,321)	(168,210)
Other loss, net	(34,117)	(15,578)	(59,128)	(11,181)
Loss before income taxes	(444,411)	(166,086)	(1,029,449)	(179,391)
Provision for income taxes	6,495	2,285	20,306	7,037
Net loss	$ (450,906)	$ (168,371)	$ (1,049,755)	$ (186,428)
Net loss per common share:
Basic	$ (0.15)	$ (0.06)	$ (0.35)	$ (0.06)
Weighted average number of common shares, basic	2,995,910	2,995,910	2,995,910	2,995,910
Diluted	$ (0.15)	$ (0.06)	$ (0.35)	$ (0.06)
Weighted average number of common shares, diluted	2,995,910	2,995,910	2,995,910	2,995,910
Comprehensive loss
Net loss	$ (450,906)	$ (168,371)	$ (1,049,755)	$ (186,428)
Foreign currency translation adjustment	(39,107)	(36,239)	(54,780)	(115,148)
Total comprehensive loss	$ (490,013)	$ (204,610)	$ (1,104,535)	$ (301,576)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Cash flows relating to operating activities
Net loss	$ (1,049,755)	$ (186,428)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	187,614	201,982
Gain on sale of property and equipment	(299)	0
Stock based compensation	48,320	49,713
(Increase) decrease in:
Accounts receivable	647,856	(244,823)
Inventories	(260,379)	50,305
Prepaid expenses	20,707	(15,192)
Income taxes receivable	(314)	(190)
Increase (decrease) in:
Accounts payable	(185,115)	95,133
Accrued liabilities	(87,380)	285,074
Income taxes payable	0	(210)
Net cash provided by (used in) operating activities	(678,745)	235,364
Cash flows relating to investing activities
Proceeds from sale of property and equipment	14,950	0
Purchases of property and equipment	(3,520)	(18,933)
Net cash provided by (used in) investing activities	11,430	(18,933)
Effect of foreign exchange translation on cash	7,026	(74,432)
Increase (decrease) in cash and cash equivalents	(660,289)	141,999
Cash and cash equivalents, beginning of period	1,795,654	1,510,565
Cash and cash equivalents, end of period	1,135,365	1,652,564
Supplemental disclosure of cash flow information
Cash paid during the period for income taxes	20,620	7,427
Cash paid during the period for interest	$ 2,025	$ 2,709

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders Equity - 9 months ended Feb. 29, 2016 - 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	$ 48,320	$ 48,320	0	0
Net income (loss)	(1,049,755)	0	0	(1,049,755)
Other comprehensive income (loss)	(54,780)	0	(54,780)	0
Ending balance at Feb. 29, 2016	$ 8,432,389	$ 10,559,644	$ (421,725)	$ (1,705,530)
Ending balance, shares at Feb. 29, 2016	2,995,910	2,995,910

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Feb. 29, 2016
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 February 29, 2016 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 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 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 $14,774 and $56,370 as of February 29, 2016 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 February 29, 2016 and May 31, 2015, inventories consisted of: February 29, 2016 May 31, 2015 Raw materials $ 2,058,153 $ 1,845,037 Work-in-process 1,031,223 836,346 Finished goods 1,685,616 1,876,184 $ 4,774,992 $ 4,557,567 Property and Equipment Property and equipment are stated at cost less depreciation and amortization. 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 February 29, 2016 and May 31, 2015, property and equipment consisted of: February 29, 2016 May 31, 2015 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,343,612 1,381,691 Vehicles 96,587 96,587 3,553,723 3,591,802 Less accumulated depreciation (2,557,943 ) (2,480,924 ) $ 995,780 $ 1,110,878

Stock Options and Stock-Based C

Stock Options and Stock-Based Compensation	9 Months Ended
	Feb. 29, 2016
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 nine months ended February 29, 2016 and February 28, 2015, the Company has computed the value of all stock options granted using the Black-Scholes option pricing model. No options were granted during the nine months ended February 29, 2016. 87,500 options were granted during the nine months ended February 28, 2015. At February 29, 2016, the Company had a total of 327,500 outstanding stock options (249,168 vested and exercisable and 78,332 non-vested) with a weighted average exercise price of $3.65. The Company estimates that $36,578 will be recorded as additional stock-based compensation expense over a weighted-average period of 1.2 years for all options that were outstanding as of February 29, 2016, but which were not yet vested. Outstanding Options Exercisable Options Number of Shares Weighted Weighted Number of Weighted 35,000 $ 2.53 7.6 23,333 $ 2.53 112,500 2.84 8.3 45,835 2.85 130,000 3.65 5.3 130,000 3.65 50,000 6.25 2.3 50,000 6.25 327,500 3.65 6.1 249,168 3.92 Options granted, exercised, and forfeited or canceled under the Company’s stock option plan during the three and nine months ended February 29, 2016 are summarized as follows: Three Months Ended Nine Months Ended Number of Weighted Number of Weighted Options outstanding - beginning of period 332,500 $ 3.68 332,500 $ 3.68 Options granted 0 0 0 0 Options exercised 0 0 0 0 Options forfeited/canceled (5,000 ) 5.80 (5,000 ) 5.80 Options outstanding - end of period 327,500 3.65 327,500 3.65

EPS Reconciliation

EPS Reconciliation	9 Months Ended
	Feb. 29, 2016
Earnings Per Share [Abstract]
EPS Reconciliation	Note 3: EPS RECONCILIATION Three Months Ended Nine Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Weighted average shares (basic) 2,995,910 2,995,910 2,995,910 2,995,910 Effect of dilutive stock options 0 0 0 0 Weighted average shares (diluted) 2,995,910 2,995,910 2,995,910 2,995,910 Basic loss per share is computed using the weighted average number of common shares outstanding. Diluted 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	9 Months Ended
	Feb. 29, 2016
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 February 29, 2016 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 February 29, 2016 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 2.0% for the nine months ended February 29, 2016. 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 2.3% due to the items noted above.

Segments of Business

Segments of Business	9 Months Ended
	Feb. 29, 2016
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 February 29, 2016 February 28, 2015 Balancer Measurement Balancer Measurement Gross sales $ 1,670,316 $ 1,248,769 $ 2,269,691 $ 1,108,449 Intercompany sales (389,844 ) (776 ) (366,209 ) (1,313 ) Net sales $ 1,280,472 $ 1,247,993 $ 1,903,482 $ 1,107,136 Operating loss $ (348,631 ) $ (61,663 ) $ (127,375 ) $ (23,133 ) Depreciation expense $ 23,057 $ 9,477 $ 23,271 $ 10,879 Amortization expense $ 0 $ 27,882 $ 0 $ 27,882 Capital expenditures $ 3,520 $ 0 $ 5,883 $ 0 Nine Months Ended February 29, 2016 February 28, 2015 Balancer Measurement Balancer Measurement Gross sales $ 6,089,441 $ 3,622,681 $ 6,537,038 $ 3,517,884 Intercompany sales (1,000,745 ) (4,759 ) (870,537 ) 27,025 Net sales $ 5,088,696 $ 3,617,922 $ 5,666,501 $ 3,544,909 Operating income (loss) $ (684,196 ) $ (286,125 ) $ (237,357 ) $ 69,147 Depreciation expense $ 74,103 $ 29,864 $ 77,543 $ 33,090 Amortization expense $ 0 $ 83,647 $ 0 $ 91,349 Capital expenditures $ 3,520 $ 0 $ 18,933 $ 0 Geographic Information – Net Sales by Geographic Area Three Months Ended Nine Months Ended February 29, February 28, February 29, February 28, North America $ 1,776,511 $ 1,894,564 $ 5,944,433 $ 5,713,638 Europe 238,553 226,011 923,275 852,561 Asia 467,508 807,875 1,688,064 2,435,357 Other markets 45,893 82,168 150,846 209,854 Total net sales $ 2,528,465 $ 3,010,618 $ 8,706,618 $ 9,211,410 Three Months Ended February 29, 2016 February 28, 2015 United States Europe United States Europe Operating loss $ (336,999 ) $ (73,295 ) $ (115,502 ) $ (35,006 ) Depreciation expense $ 32,534 $ 0 $ 34,150 $ 0 Amortization expense $ 27,882 $ 0 $ 27,882 $ 0 Capital expenditures $ 3,520 $ 0 $ 5,883 $ 0 Nine Months Ended February 29, 2016 February 28, 2015 United States Europe United States Europe Operating loss $ (836,741 ) $ (133,580 ) $ (151,969 ) $ (16,241 ) Depreciation expense $ 103,967 $ 0 $ 110,633 $ 0 Amortization expense $ 83,647 $ 0 $ 91,349 $ 0 Capital expenditures $ 3,520 $ 0 $ 18,933 $ 0 Note — Europe is defined as the European subsidiary, Schmitt Europe, Ltd. Segment and Geographic Assets February 29, 2016 May 31, 2015 Segment assets to total assets Balancer $ 4,689,503 $ 5,059,567 Measurement 3,938,214 4,247,684 Corporate assets 1,136,708 1,796,684 Total assets $ 9,764,425 $ 11,103,935 Geographic assets to long-lived assets United States $ 995,780 $ 1,110,878 Europe 0 0 Total long-lived assets $ 995,780 $ 1,110,878 Geographic assets to total assets United States $ 8,712,243 $ 10,107,523 Europe 1,052,182 996,412 Total assets $ 9,764,425 $ 11,103,935

Summary of Significant Accoun12

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Feb. 29, 2016
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 February 29, 2016 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 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 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 $14,774 and $56,370 as of February 29, 2016 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 February 29, 2016 and May 31, 2015, inventories consisted of: February 29, 2016 May 31, 2015 Raw materials $ 2,058,153 $ 1,845,037 Work-in-process 1,031,223 836,346 Finished goods 1,685,616 1,876,184 $ 4,774,992 $ 4,557,567
Property and Equipment	Property and Equipment Property and equipment are stated at cost less depreciation and amortization. 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 February 29, 2016 and May 31, 2015, property and equipment consisted of: February 29, 2016 May 31, 2015 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,343,612 1,381,691 Vehicles 96,587 96,587 3,553,723 3,591,802 Less accumulated depreciation (2,557,943 ) (2,480,924 ) $ 995,780 $ 1,110,878

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Feb. 29, 2016
Accounting Policies [Abstract]
Inventories	As of February 29, 2016 and May 31, 2015, inventories consisted of: February 29, 2016 May 31, 2015 Raw materials $ 2,058,153 $ 1,845,037 Work-in-process 1,031,223 836,346 Finished goods 1,685,616 1,876,184 $ 4,774,992 $ 4,557,567
Summary of Property and Equipment	As of February 29, 2016 and May 31, 2015, property and equipment consisted of: February 29, 2016 May 31, 2015 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,343,612 1,381,691 Vehicles 96,587 96,587 3,553,723 3,591,802 Less accumulated depreciation (2,557,943 ) (2,480,924 ) $ 995,780 $ 1,110,878

Stock Options and Stock-Based14

Stock Options and Stock-Based Compensation (Tables)	9 Months Ended
	Feb. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Outstanding Stock Options	Outstanding Options Exercisable Options Number of Shares Weighted Weighted Number of Weighted 35,000 $ 2.53 7.6 23,333 $ 2.53 112,500 2.84 8.3 45,835 2.85 130,000 3.65 5.3 130,000 3.65 50,000 6.25 2.3 50,000 6.25 327,500 3.65 6.1 249,168 3.92
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 nine months ended February 29, 2016 are summarized as follows: Three Months Ended Nine Months Ended Number of Weighted Number of Weighted Options outstanding - beginning of period 332,500 $ 3.68 332,500 $ 3.68 Options granted 0 0 0 0 Options exercised 0 0 0 0 Options forfeited/canceled (5,000 ) 5.80 (5,000 ) 5.80 Options outstanding - end of period 327,500 3.65 327,500 3.65

EPS Reconciliation (Tables)

EPS Reconciliation (Tables)	9 Months Ended
	Feb. 29, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	Three Months Ended Nine Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Weighted average shares (basic) 2,995,910 2,995,910 2,995,910 2,995,910 Effect of dilutive stock options 0 0 0 0 Weighted average shares (diluted) 2,995,910 2,995,910 2,995,910 2,995,910

Segments of Business (Tables)

Segments of Business (Tables)	9 Months Ended
	Feb. 29, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information Three Months Ended February 29, 2016 February 28, 2015 Balancer Measurement Balancer Measurement Gross sales $ 1,670,316 $ 1,248,769 $ 2,269,691 $ 1,108,449 Intercompany sales (389,844 ) (776 ) (366,209 ) (1,313 ) Net sales $ 1,280,472 $ 1,247,993 $ 1,903,482 $ 1,107,136 Operating loss $ (348,631 ) $ (61,663 ) $ (127,375 ) $ (23,133 ) Depreciation expense $ 23,057 $ 9,477 $ 23,271 $ 10,879 Amortization expense $ 0 $ 27,882 $ 0 $ 27,882 Capital expenditures $ 3,520 $ 0 $ 5,883 $ 0 Nine Months Ended February 29, 2016 February 28, 2015 Balancer Measurement Balancer Measurement Gross sales $ 6,089,441 $ 3,622,681 $ 6,537,038 $ 3,517,884 Intercompany sales (1,000,745 ) (4,759 ) (870,537 ) 27,025 Net sales $ 5,088,696 $ 3,617,922 $ 5,666,501 $ 3,544,909 Operating income (loss) $ (684,196 ) $ (286,125 ) $ (237,357 ) $ 69,147 Depreciation expense $ 74,103 $ 29,864 $ 77,543 $ 33,090 Amortization expense $ 0 $ 83,647 $ 0 $ 91,349 Capital expenditures $ 3,520 $ 0 $ 18,933 $ 0
Geographic Information-Net Sales by Geographic Area	Geographic Information – Net Sales by Geographic Area Three Months Ended Nine Months Ended February 29, February 28, February 29, February 28, North America $ 1,776,511 $ 1,894,564 $ 5,944,433 $ 5,713,638 Europe 238,553 226,011 923,275 852,561 Asia 467,508 807,875 1,688,064 2,435,357 Other markets 45,893 82,168 150,846 209,854 Total net sales $ 2,528,465 $ 3,010,618 $ 8,706,618 $ 9,211,410
Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas	Three Months Ended February 29, 2016 February 28, 2015 United States Europe United States Europe Operating loss $ (336,999 ) $ (73,295 ) $ (115,502 ) $ (35,006 ) Depreciation expense $ 32,534 $ 0 $ 34,150 $ 0 Amortization expense $ 27,882 $ 0 $ 27,882 $ 0 Capital expenditures $ 3,520 $ 0 $ 5,883 $ 0 Nine Months Ended February 29, 2016 February 28, 2015 United States Europe United States Europe Operating loss $ (836,741 ) $ (133,580 ) $ (151,969 ) $ (16,241 ) Depreciation expense $ 103,967 $ 0 $ 110,633 $ 0 Amortization expense $ 83,647 $ 0 $ 91,349 $ 0 Capital expenditures $ 3,520 $ 0 $ 18,933 $ 0
Segment and Geographic Assets	Segment and Geographic Assets February 29, 2016 May 31, 2015 Segment assets to total assets Balancer $ 4,689,503 $ 5,059,567 Measurement 3,938,214 4,247,684 Corporate assets 1,136,708 1,796,684 Total assets $ 9,764,425 $ 11,103,935 Geographic assets to long-lived assets United States $ 995,780 $ 1,110,878 Europe 0 0 Total long-lived assets $ 995,780 $ 1,110,878 Geographic assets to total assets United States $ 8,712,243 $ 10,107,523 Europe 1,052,182 996,412 Total assets $ 9,764,425 $ 11,103,935

Summary of Significant Accoun17

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	9 Months Ended
	Feb. 29, 2016	May. 31, 2015
Significant Accounting Policies [Line Items]
Allowance for doubtful accounts	$ 14,774	$ 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 ($)	Feb. 29, 2016	May. 31, 2015
Inventory, Net [Abstract]
Raw materials	$ 2,058,153	$ 1,845,037
Work-in-process	1,031,223	836,346
Finished goods	1,685,616	1,876,184
Inventories	$ 4,774,992	$ 4,557,567

Significant Accounting Policies

Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($)	Feb. 29, 2016	May. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 3,553,723	$ 3,591,802
Less accumulated depreciation	(2,557,943)	(2,480,924)
Property, plant and equipment, net	995,780	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	1,343,612	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	9 Months Ended
	Feb. 29, 2016	Feb. 29, 2016	Feb. 28, 2015	Nov. 30, 2015	May. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend rate		0.00%
Options Granted	0	0	87,500
Outstanding stock options, total	327,500	327,500		332,500	332,500
Vested and exercisable stock options	249,168	249,168
Non-vested shares	78,332	78,332
Weighted average exercise price	$ 3.65	$ 3.65		$ 3.68	$ 3.68
Additional stock-based compensation expense	$ 36,578	$ 36,578
Additional stock-based compensation expense weighted average period		1 year 2 months 12 days

Stock Options and Stock-Based21

Stock Options and Stock-Based Compensation - Schedule of Outstanding Stock Options (Detail) - $ / shares	9 Months Ended
	Feb. 29, 2016	Nov. 30, 2015	May. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	327,500	332,500	332,500
Weighted Average Exercise Price, Outstanding Options	$ 3.65	$ 3.68	$ 3.68
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	6 years 1 month 6 days
Exercisable Options, Number of Shares	249,168
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	7 years 7 months 6 days
Exercisable Options, Number of Shares	23,333
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 3 months 18 days
Exercisable Options, Number of Shares	45,835
Exercisable Options, Weighted Average Exercise Price	$ 2.85
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 3 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	50,000
Weighted Average Exercise Price, Outstanding Options	$ 6.25
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	2 years 3 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	9 Months Ended
	Feb. 29, 2016	Feb. 29, 2016	Feb. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Options outstanding - beginning of period	332,500	332,500
Number of Shares, Options granted	0	0	87,500
Number of Shares, Options exercised	0	0
Number of Shares, Options forfeited/canceled	(5,000)	(5,000)
Number of Shares, Options outstanding - end of period	327,500	327,500
Weighted Average Exercise Price, Options outstanding - beginning of period	$ 3.68	$ 3.68
Weighted Average Exercise Price, Options granted	0	0
Weighted Average Exercise Price, Options exercised	0	0
Weighted Average Exercise Price, Options forfeited/canceled	5.80	5.80
Weighted Average Exercise Price, Options outstanding - end of period	$ 3.65	$ 3.65

EPS Reconciliation - Schedule o

EPS Reconciliation - Schedule of Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Earnings Per Share [Abstract]
Weighted average shares (basic)	2,995,910	2,995,910	2,995,910	2,995,910
Effect of dilutive stock options	0	0	0	0
Weighted average shares (diluted)	2,995,910	2,995,910	2,995,910	2,995,910

EPS Reconciliation - Additional

EPS Reconciliation - Additional Information (Detail)	9 Months Ended
	Feb. 29, 2016shares
Earnings Per Share [Abstract]
Antidilutive common stock equivalents	0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Feb. 29, 2016	May. 31, 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	2.00%
Forecast [Member]
Income Tax Contingency [Line Items]
Effective tax rate for Fiscal 2016		2.30%
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)	9 Months Ended
	Feb. 29, 2016SegmentMarkets
Segment Reporting [Abstract]
Number of reportable business segments | Segment	2
Number of geographic markets in which entity operates | Markets	3

Segments of Business - Segment

Segments of Business - Segment Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Segment Reporting Information [Line Items]
Net sales	$ 2,528,465	$ 3,010,618	$ 8,706,618	$ 9,211,410
Operating income (loss)	(410,294)	(150,508)	(970,321)	(168,210)
Capital expenditures			3,520	18,933
Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	1,247,993	1,107,136	3,617,922	3,544,909
Operating income (loss)	(61,663)	(23,133)	(286,125)	69,147
Depreciation expense	9,477	10,879	29,864	33,090
Amortization expense	27,882	27,882	83,647	91,349
Capital expenditures	0	0	0	0
Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	1,280,472	1,903,482	5,088,696	5,666,501
Operating income (loss)	(348,631)	(127,375)	(684,196)	(237,357)
Depreciation expense	23,057	23,271	74,103	77,543
Amortization expense	0	0	0	0
Capital expenditures	3,520	5,883	3,520	18,933
Operating Segments [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	1,248,769	1,108,449	3,622,681	3,517,884
Operating Segments [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	1,670,316	2,269,691	6,089,441	6,537,038
Intersegment Eliminations [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	(776)	(1,313)	(4,759)	27,025
Intersegment Eliminations [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	$ (389,844)	$ (366,209)	$ (1,000,745)	$ (870,537)

Segments of Business - Geograph

Segments of Business - Geographic Information - Net Sales by Geographic Area (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 2,528,465	$ 3,010,618	$ 8,706,618	$ 9,211,410
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	1,776,511	1,894,564	5,944,433	5,713,638
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	238,553	226,011	923,275	852,561
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	467,508	807,875	1,688,064	2,435,357
Other markets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 45,893	$ 82,168	$ 150,846	$ 209,854

Segments of Business - Segmen29

Segments of Business - Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas (Detail) - USD ($)		3 Months Ended		9 Months Ended
		Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating loss		$ (410,294)	$ (150,508)	$ (970,321)	$ (168,210)
Capital expenditures				3,520	18,933
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating loss		(336,999)	(115,502)	(836,741)	(151,969)
Depreciation expense		32,534	34,150	103,967	110,633
Amortization expense		27,882	27,882	83,647	91,349
Capital expenditures		3,520	5,883	3,520	18,933
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating loss	[1]	(73,295)	(35,006)	(133,580)	(16,241)
Depreciation expense	[1]	0	0	0	0
Amortization expense	[1]	0	0	0	0
Capital expenditures	[1]	$ 0	$ 0	$ 0	$ 0
[1]	Note - Europe is defined as the European subsidiary, Schmitt Europe, Ltd.

Segments of Business - Segmen30

Segments of Business - Segment and Geographic Assets (Detail) - USD ($)	Feb. 29, 2016	May. 31, 2015
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	$ 9,764,425	$ 11,103,935
Geographic assets to long-lived assets	995,780	1,110,878
Segment and geographic assets to total assets	9,764,425	11,103,935
United States [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	8,712,243	10,107,523
Geographic assets to long-lived assets	995,780	1,110,878
Segment and geographic assets to total assets	8,712,243	10,107,523
Europe [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	1,052,182	996,412
Geographic assets to long-lived assets	0	0
Segment and geographic assets to total assets	1,052,182	996,412
Operating Segments [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	4,689,503	5,059,567
Segment and geographic assets to total assets	4,689,503	5,059,567
Operating Segments [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	3,938,214	4,247,684
Segment and geographic assets to total assets	3,938,214	4,247,684
Corporate Assets [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	1,136,708	1,796,684
Segment and geographic assets to total assets	$ 1,136,708	$ 1,796,684