Schmitt Industries (SMIT) 10-Q 13 Oct 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Aug. 31, 2017	Sep. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2017
Document Fiscal Year Focus	2,018
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, 2017	May 31, 2017
Current assets
Cash and cash equivalents	$ 529,363	$ 867,607
Accounts receivable, net	2,086,015	2,344,373
Inventories	4,544,943	4,204,723
Prepaid expenses	129,978	115,756
Income taxes receivable	3,082	7,310
Total current assets	7,293,381	7,539,769
Property and equipment, net	846,198	865,224
Other assets
Intangible assets, net	575,205	601,351
TOTAL ASSETS	8,714,784	9,006,344
Current liabilities
Accounts payable	1,055,690	1,101,066
Accrued commissions	303,114	300,234
Accrued payroll liabilities	217,385	360,239
Other accrued liabilities	288,663	267,418
Total current liabilities	1,864,852	2,028,957
Stockholders' equity
Common stock, no par value, 20,000,000 shares authorized, 2,995,910 shares issued and outstanding at August 31, 2017 and May 31, 2017	10,670,654	10,649,287
Accumulated other comprehensive loss	(442,296)	(427,572)
Accumulated deficit	(3,378,426)	(3,244,328)
Total stockholders' equity	6,849,932	6,977,387
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 8,714,784	$ 9,006,344

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Aug. 31, 2017	May 31, 2017
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
	Aug. 31, 2017	Aug. 31, 2016
Income Statement [Abstract]
Net sales	$ 3,083,648	$ 2,892,532
Cost of sales	1,678,129	1,516,783
Gross profit	1,399,519	1,375,749
Operating expenses:
General, administration and sales	1,468,344	1,412,669
Research and development	76,457	78,847
Total operating expenses	1,544,801	1,491,516
Operating loss	(145,282)	(115,767)
Other income (expense), net	17,543	(1,833)
Loss before income taxes	(127,739)	(117,600)
Provision for income taxes	6,359	8,029
Net loss	$ (134,098)	$ (125,629)
Net loss per common share:
Basic	$ (0.04)	$ (0.04)
Weighted average number of common shares, basic	2,995,910	2,995,910
Diluted	$ (0.04)	$ (0.04)
Weighted average number of common shares, diluted	2,995,910	2,995,910
Comprehensive loss
Net loss	$ (134,098)	$ (125,629)
Foreign currency translation adjustment	(14,724)	(44,517)
Total comprehensive loss	$ (148,822)	$ (170,146)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Aug. 31, 2017	Aug. 31, 2016
Cash flows relating to operating activities
Net loss	$ (134,098)	$ (125,629)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	52,750	54,147
Gain on disposal of property and equipment	0	(17,509)
Stock based compensation	21,367	9,438
(Increase) decrease in:
Accounts receivable	258,280	158,886
Inventories	(339,884)	63,793
Prepaid expenses	(14,150)	19,635
Income taxes receivable	4,228	2,326
Increase (decrease) in:
Accounts payable	(45,308)	(161,133)
Accrued liabilities and customer deposits	(118,566)	27,328
Income taxes payable	0	0
Net cash provided by (used in) operating activities	(315,381)	31,282
Cash flows relating to investing activities
Purchases of property and equipment	(7,578)	(44,587)
Proceeds from the sale of property and equipment	0	20,085
Net cash used in investing activities	(7,578)	(24,502)
Effect of foreign exchange translation on cash	(15,285)	6,692
Increase (decrease) in cash and cash equivalents	(338,244)	13,472
Cash and cash equivalents, beginning of period	867,607	988,686
Cash and cash equivalents, end of period	529,363	1,002,158
Supplemental disclosure of cash flow information
Cash paid during the period for income taxes	2,131	5,703
Cash paid during the period for interest	$ 413	$ 568

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - 3 months ended Aug. 31, 2017 - USD ($)	Total	Common Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Beginning balance at May. 31, 2017	$ 6,977,387	$ 10,649,287	$ (427,572)	$ (3,244,328)
Beginning balance, shares at May. 31, 2017	2,995,910	2,995,910
Stock-based compensation	$ 21,367	$ 21,367	0	0
Net loss	(134,098)	0	0	(134,098)
Other comprehensive loss	(14,724)	0	(14,724)	0
Ending balance at Aug. 31, 2017	$ 6,849,932	$ 10,670,654	$ (442,296)	$ (3,378,426)
Ending balance, shares at Aug. 31, 2017	2,995,910	2,995,910

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Aug. 31, 2017
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, 2017 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2017 has been derived from the Annual Report on Form 10-K 10-K 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. The Company estimates customer product returns based on historical return patterns and reduces sales and cost of sales accordingly. 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 $81,388 and $32,572 as of August 31, 2017 and May 31, 2017, 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, 2017 and May 31, 2017, inventories consisted of: August 31, 2017 May 31, 2017 Raw materials $ 2,112,384 $ 1,773,368 Work-in-process 1,039,629 937,878 Finished goods 1,392,930 1,493,477 $ 4,544,943 $ 4,204,723 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, 2017 and May 31, 2017, property and equipment consisted of: August 31, 2017 May 31, 2017 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,253,940 1,246,346 Vehicles 44,704 44,704 3,412,168 3,404,574 Less accumulated depreciation (2,565,970 ) (2,539,350 ) $ 846,198 $ 865,224 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, 2014-09 2015-14, 2014-09 2014-09 2014-09 ASU 2014-09’s ASU 2014-09

Stock Options and Stock-Based C

Stock Options and Stock-Based Compensation	3 Months Ended
	Aug. 31, 2017
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. pre-vesting • Expected Volatility. • Expected Dividend Yield. • Expected Forfeitures. pre-vesting To determine stock-based compensation expense recognized for those options granted during the three months ended August 31, 2017 and 2016, the Company has computed the value of all stock options granted using the Black-Scholes option pricing model. No options were issued during the three months ended August 31, 2017 and 2016. At August 31, 2017, the Company had a total of 360,000 outstanding stock options (200,830 vested and exercisable and 159,170 non-vested) Outstanding Options Exercisable Options Number of Weighted Weighted Number Weighted 212,500 $ 1.70 9.6 70,830 $ 1.70 15,000 2.53 6.1 15,000 2.53 77,500 2.85 6.6 60,000 2.85 55,000 3.65 3.8 55,000 3.65 360,000 2.28 7.9 200,830 2.64 Options granted, exercised, and forfeited or canceled under the Company’s stock option plan during the three months ended August 31, 2017 are summarized as follows: Three Months Ended Number Weighted Options outstanding – beginning of period 360,000 $ 2.28 Options granted 0 0 Options exercised 0 0 Options forfeited/canceled 0 0 Options outstanding – end of period 360,000 2.28

EPS Reconciliation

EPS Reconciliation	3 Months Ended
	Aug. 31, 2017
Earnings Per Share [Abstract]
EPS Reconciliation	NOTE 3: EPS RECONCILIATION Three Months Ended 2017 2016 Weighted average shares (basic) 2,995,910 2,995,910 Effect of dilutive stock options 0 0 Weighted average shares (diluted) 2,995,910 2,995,910 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, 2017
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. Management continues to review the level of the valuation allowance on a quarterly basis. There can be no assurance that the Company’s future operations will produce sufficient earnings to that the deferred tax asset can be fully utilized. The Company currently maintains a full valuation allowance against net deferred tax assets. 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, Other long-term liabilities related to tax contingencies were $0 as of both August 31, 2017 and May 31, 2017. 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 2017 and May 31, 2017. Several tax years are subject to examination by major tax jurisdictions. In the United States, federal tax years ended May 31, 2014 and after are subject to examination. In the United Kingdom, tax years ended May 31, 2012 and after are subject to examination. In Canada, tax years after May 31, 2014 and after are subject to examination. Effective Tax Rate The effective tax rate on consolidated net loss was 5.0% for the three months ended August 31, 2017. The effective tax rate on consolidated net loss differs from the federal statutory tax rate primarily due to 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 2018 will be approximately 5.2% due to the items noted above.

Segments of Business

Segments of Business	3 Months Ended
	Aug. 31, 2017
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, 2017 2016 Balancer Measurement Balancer Measurement Gross sales $ 2,445,486 $ 1,013,251 $ 1,828,050 $ 1,344,054 Intercompany sales (375,089 ) — (267,174 ) (12,398 ) Net sales $ 2,070,397 $ 1,013,251 $ 1,560,876 $ 1,331,656 Operating income (loss) $ (211,780 ) $ 66,498 $ (212,839 ) $ 97,072 Depreciation expense $ 16,982 $ 9,622 $ 16,787 $ 9,477 Amortization expense $ 0 $ 26,146 $ 0 $ 27,883 Capital expenditures $ 7,578 $ 0 $ 44,587 $ 0 Geographic Information – Net Sales by Geographic Area Three Months Ended August 31, 2017 2016 North America $ 1,791,101 $ 1,954,362 Europe 517,863 323,412 Asia 749,422 498,620 Other markets 25,262 116,138 Total net sales $ 3,083,648 $ 2,892,532 Three Months Ended August 31, 2017 2016 United States Europe United States Europe Operating income (loss) $ (215,465 ) 70,183 $ (94,165 ) (21,602 ) Depreciation expense $ 26,604 $ 0 $ 26,264 $ 0 Amortization expense $ 26,146 $ 0 $ 27,883 $ 0 Capital expenditures $ 7,578 $ 0 $ 44,587 $ 0 Note – – Europe is defined as the European subsidiary, Schmitt Europe, Ltd. Segment and Geographic Assets August 31, 2017 May 31, 2017 Segment assets to total assets Balancer $ 4,917,524 $ 4,791,100 Measurement 3,264,815 3,340,327 Corporate assets 532,445 874,917 Total assets $ 8,714,784 $ 9,006,344 Geographic assets to long-lived assets United States $ 846,198 $ 865,224 Europe 0 0 Total long-lived assets $ 846,198 $ 865,224 Geographic assets to total assets United States $ 7,739,482 $ 8,149,507 Europe 975,302 856,837 Total assets $ 8,714,784 $ 9,006,344

Summary of Significant Accoun12

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Aug. 31, 2017
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, 2017 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2017 has been derived from the Annual Report on Form 10-K 10-K
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. The Company estimates customer product returns based on historical return patterns and reduces sales and cost of sales accordingly.
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 $81,388 and $32,572 as of August 31, 2017 and May 31, 2017, 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, 2017 and May 31, 2017, inventories consisted of: August 31, 2017 May 31, 2017 Raw materials $ 2,112,384 $ 1,773,368 Work-in-process 1,039,629 937,878 Finished goods 1,392,930 1,493,477 $ 4,544,943 $ 4,204,723
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, 2017 and May 31, 2017, property and equipment consisted of: August 31, 2017 May 31, 2017 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,253,940 1,246,346 Vehicles 44,704 44,704 3,412,168 3,404,574 Less accumulated depreciation (2,565,970 ) (2,539,350 ) $ 846,198 $ 865,224
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, 2014-09 2015-14, 2014-09 2014-09 2014-09 ASU 2014-09’s ASU 2014-09

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Aug. 31, 2017
Accounting Policies [Abstract]
Inventories	As of August 31, 2017 and May 31, 2017, inventories consisted of: August 31, 2017 May 31, 2017 Raw materials $ 2,112,384 $ 1,773,368 Work-in-process 1,039,629 937,878 Finished goods 1,392,930 1,493,477 $ 4,544,943 $ 4,204,723
Summary of Property and Equipment	As of August 31, 2017 and May 31, 2017, property and equipment consisted of: August 31, 2017 May 31, 2017 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,253,940 1,246,346 Vehicles 44,704 44,704 3,412,168 3,404,574 Less accumulated depreciation (2,565,970 ) (2,539,350 ) $ 846,198 $ 865,224

Stock Options and Stock-Based14

Stock Options and Stock-Based Compensation (Tables)	3 Months Ended
	Aug. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Outstanding Stock Options	Outstanding Options Exercisable Options Number of Weighted Weighted Number Weighted 212,500 $ 1.70 9.6 70,830 $ 1.70 15,000 2.53 6.1 15,000 2.53 77,500 2.85 6.6 60,000 2.85 55,000 3.65 3.8 55,000 3.65 360,000 2.28 7.9 200,830 2.64
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, 2017 are summarized as follows: Three Months Ended Number Weighted Options outstanding – beginning of period 360,000 $ 2.28 Options granted 0 0 Options exercised 0 0 Options forfeited/canceled 0 0 Options outstanding – end of period 360,000 2.28

EPS Reconciliation (Tables)

EPS Reconciliation (Tables)	3 Months Ended
	Aug. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	Three Months Ended 2017 2016 Weighted average shares (basic) 2,995,910 2,995,910 Effect of dilutive stock options 0 0 Weighted average shares (diluted) 2,995,910 2,995,910

Segments of Business (Tables)

Segments of Business (Tables)	3 Months Ended
	Aug. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information Three Months Ended August 31, 2017 2016 Balancer Measurement Balancer Measurement Gross sales $ 2,445,486 $ 1,013,251 $ 1,828,050 $ 1,344,054 Intercompany sales (375,089 ) — (267,174 ) (12,398 ) Net sales $ 2,070,397 $ 1,013,251 $ 1,560,876 $ 1,331,656 Operating income (loss) $ (211,780 ) $ 66,498 $ (212,839 ) $ 97,072 Depreciation expense $ 16,982 $ 9,622 $ 16,787 $ 9,477 Amortization expense $ 0 $ 26,146 $ 0 $ 27,883 Capital expenditures $ 7,578 $ 0 $ 44,587 $ 0
Geographic Information-Net Sales by Geographic Area	Geographic Information – Net Sales by Geographic Area Three Months Ended August 31, 2017 2016 North America $ 1,791,101 $ 1,954,362 Europe 517,863 323,412 Asia 749,422 498,620 Other markets 25,262 116,138 Total net sales $ 3,083,648 $ 2,892,532
Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas	Three Months Ended August 31, 2017 2016 United States Europe United States Europe Operating income (loss) $ (215,465 ) 70,183 $ (94,165 ) (21,602 ) Depreciation expense $ 26,604 $ 0 $ 26,264 $ 0 Amortization expense $ 26,146 $ 0 $ 27,883 $ 0 Capital expenditures $ 7,578 $ 0 $ 44,587 $ 0
Segment and Geographic Assets	Segment and Geographic Assets August 31, 2017 May 31, 2017 Segment assets to total assets Balancer $ 4,917,524 $ 4,791,100 Measurement 3,264,815 3,340,327 Corporate assets 532,445 874,917 Total assets $ 8,714,784 $ 9,006,344 Geographic assets to long-lived assets United States $ 846,198 $ 865,224 Europe 0 0 Total long-lived assets $ 846,198 $ 865,224 Geographic assets to total assets United States $ 7,739,482 $ 8,149,507 Europe 975,302 856,837 Total assets $ 8,714,784 $ 9,006,344

Summary of Significant Accoun17

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2017	May 31, 2017
Significant Accounting Policies [Line Items]
Allowance for doubtful accounts	$ 81,388	$ 32,572
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, 2017	May 31, 2017
Inventory, Net [Abstract]
Raw materials	$ 2,112,384	$ 1,773,368
Work-in-process	1,039,629	937,878
Finished goods	1,392,930	1,493,477
Inventories	$ 4,544,943	$ 4,204,723

Summary of Significant Accoun19

Summary of Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($)	Aug. 31, 2017	May 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 3,412,168	$ 3,404,574
Less accumulated depreciation	(2,565,970)	(2,539,350)
Property, plant and equipment, net	846,198	865,224
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	1,253,940	1,246,346
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 44,704	$ 44,704

Stock Options and Stock-Based20

Stock Options and Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2017	Aug. 31, 2016	May 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend rate	0.00%
Options Granted	0	0
Outstanding stock options, total	360,000		360,000
Vested and exercisable stock options	200,830
Non-vested shares	159,170
Weighted average exercise price	$ 2.28		$ 2.28
Additional stock-based compensation expense	$ 69,643
Weighted average period over which unrecognized compensation is expected to be recognized	1 year 2 months 12 days

Stock Options and Stock-Based21

Stock Options and Stock-Based Compensation - Schedule of Outstanding Stock Options (Detail) - $ / shares	3 Months Ended
	Aug. 31, 2017	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	360,000	360,000
Weighted Average Exercise Price, Outstanding Options	$ 2.28	$ 2.28
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	7 years 10 months 25 days
Exercisable Options, Number of Shares	200,830
Exercisable Options, Weighted Average Exercise Price	$ 2.64
Options 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	212,500
Weighted Average Exercise Price, Outstanding Options	$ 1.70
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	9 years 7 months 6 days
Exercisable Options, Number of Shares	70,830
Exercisable Options, Weighted Average Exercise Price	$ 1.70
Options 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	15,000
Weighted Average Exercise Price, Outstanding Options	$ 2.53
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	6 years 1 month 6 days
Exercisable Options, Number of Shares	15,000
Exercisable Options, Weighted Average Exercise Price	$ 2.53
Options 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	77,500
Weighted Average Exercise Price, Outstanding Options	$ 2.85
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	6 years 7 months 6 days
Exercisable Options, Number of Shares	60,000
Exercisable Options, Weighted Average Exercise Price	$ 2.85
Options 4 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	55,000
Weighted Average Exercise Price, Outstanding Options	$ 3.65
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	3 years 9 months 18 days
Exercisable Options, Number of Shares	55,000
Exercisable Options, Weighted Average Exercise Price	$ 3.65

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, 2017	Aug. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Options outstanding - beginning of period	360,000
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	360,000
Weighted Average Exercise Price, Options outstanding - beginning of period	$ 2.28
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	$ 2.28

EPS Reconciliation - Schedule o

EPS Reconciliation - Schedule of Earnings Per Share (Detail) - shares	3 Months Ended
	Aug. 31, 2017	Aug. 31, 2016
Earnings Per Share [Abstract]
Weighted average shares (basic)	2,995,910	2,995,910
Effect of dilutive stock options	0	0
Weighted average shares (diluted)	2,995,910	2,995,910

EPS Reconciliation - Additional

EPS Reconciliation - Additional Information (Detail)	3 Months Ended
	Aug. 31, 2017shares
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, 2017	May 31, 2018	May 31, 2017
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	5.00%
Forecast [Member]
Income Tax Contingency [Line Items]
Effective tax rate for Fiscal 2017		5.20%
Earliest tax year [Member] | Canada [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2,014
Domestic Tax Authority [Member] | Earliest tax year [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2,014
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, 2017SegmentMarkets
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
	Aug. 31, 2017	Aug. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 3,083,648	$ 2,892,532
Operating income (loss)	(145,282)	(115,767)
Capital expenditures	7,578	44,587
Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	1,013,251	1,331,656
Operating income (loss)	66,498	97,072
Depreciation expense	9,622	9,477
Amortization expense	26,146	27,883
Capital expenditures	0	0
Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	2,070,397	1,560,876
Operating income (loss)	(211,780)	(212,839)
Depreciation expense	16,982	16,787
Amortization expense	0	0
Capital expenditures	7,578	44,587
Operating Segments [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	1,013,251	1,344,054
Operating Segments [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	2,445,486	1,828,050
Intersegment Eliminations [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Net sales		(12,398)
Intersegment Eliminations [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	$ (375,089)	$ (267,174)

Segments of Business - Geograph

Segments of Business - Geographic Information - Net Sales by Geographic Area (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2017	Aug. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 3,083,648	$ 2,892,532
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	1,791,101	1,954,362
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	517,863	323,412
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	749,422	498,620
Other markets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 25,262	$ 116,138

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, 2017	Aug. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)		$ (145,282)	$ (115,767)
Capital expenditures		7,578	44,587
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)		(215,465)	(94,165)
Depreciation expense		26,604	26,264
Amortization expense		26,146	27,883
Capital expenditures		7,578	44,587
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)	[1]	70,183	(21,602)
Depreciation expense	[1]	0	0
Amortization expense	[1]	0	0
Capital expenditures	[1]	$ 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 ($)	Aug. 31, 2017	May 31, 2017
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	$ 8,714,784	$ 9,006,344
Geographic assets to long-lived assets	846,198	865,224
Segment and geographic assets to total assets	8,714,784	9,006,344
United States [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	7,739,482	8,149,507
Geographic assets to long-lived assets	846,198	865,224
Segment and geographic assets to total assets	7,739,482	8,149,507
Europe [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	975,302	856,837
Geographic assets to long-lived assets	0	0
Segment and geographic assets to total assets	975,302	856,837
Operating Segments [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	4,917,524	4,791,100
Segment and geographic assets to total assets	4,917,524	4,791,100
Operating Segments [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	3,264,815	3,340,327
Segment and geographic assets to total assets	3,264,815	3,340,327
Corporate Assets [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	532,445	874,917
Segment and geographic assets to total assets	$ 532,445	$ 874,917