Schmitt Industries (SMIT) 10-Q 11 Jan 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Nov. 30, 2018	Dec. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
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	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		3,994,545
Entity Small Business	true
Entity Emerging Growth Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Nov. 30, 2018	May 31, 2018
Current assets
Cash and cash equivalents	$ 1,299,886	$ 2,053,181
Restricted cash	56,583	58,352
Accounts receivable, net	2,184,906	2,047,032
Inventories	6,077,054	5,710,888
Prepaid expenses	136,004	148,924
Income taxes receivable	4,435	0
Total current assets	9,758,868	10,018,377
Property and equipment, net	734,687	770,915
Other assets
Intangible assets, net	444,476	496,768
TOTAL ASSETS	10,938,031	11,286,060
Current liabilities
Accounts payable	1,159,569	1,024,256
Accrued commissions	191,281	194,797
Accrued payroll liabilities	186,488	188,568
Other accrued liabilities	269,402	358,790
Income taxes payable	0	3,993
Total current liabilities	1,806,740	1,770,404
Stockholders' equity
Common stock, no par value, 20,000,000 shares authorized, 3,994,545 shares issued and outstanding at November 30, 2018 and May 31, 2018	13,094,639	13,085,652
Accumulated other comprehensive loss	(462,570)	(536,307)
Accumulated deficit	(3,500,778)	(3,033,689)
Total stockholders' equity	9,131,291	9,515,656
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 10,938,031	$ 11,286,060

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Nov. 30, 2018	May 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	3,994,545	3,994,545
Common stock, shares outstanding	3,994,545	3,994,545

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Income Statement [Abstract]
Net sales	$ 3,503,478	$ 3,770,880	$ 6,943,931	$ 6,854,528
Cost of sales	2,140,371	2,044,898	4,241,026	3,729,027
Gross profit	1,363,107	1,725,982	2,702,905	3,125,501
Operating expenses:
General, administration and sales	1,539,495	1,524,443	2,944,858	2,992,787
Research and development	47,924	100,760	96,161	177,217
Total operating expenses	1,587,419	1,625,203	3,041,019	3,170,004
Operating income (loss)	(224,312)	100,779	(338,114)	(44,503)
Other income (expense), net	(24,596)	9,078	(116,247)	26,621
Income (loss) before income taxes	(248,908)	109,857	(454,361)	(17,882)
Provision for income taxes	6,362	6,609	12,728	12,968
Net income (loss)	$ (255,270)	$ 103,248	$ (467,089)	$ (30,850)
Net income (loss) per common share:
Basic	$ (0.06)	$ 0.03	$ (0.12)	$ (0.01)
Weighted average number of common shares, basic	3,994,545	2,995,910	3,994,545	2,995,910
Diluted	$ (0.06)	$ 0.03	$ (0.12)	$ (0.01)
Weighted average number of common shares, diluted	3,994,545	3,024,099	3,994,545	2,995,910
Comprehensive income (loss)
Net income (loss)	$ (255,270)	$ 103,248	$ (467,089)	$ (30,850)
Foreign currency translation adjustment	(5,907)	15,164	73,737	440
Total comprehensive income (loss)	$ (261,177)	$ 118,412	$ (393,352)	$ (30,410)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Cash flows relating to operating activities
Net loss	$ (467,089)	$ (30,850)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	93,933	104,645
(Gain) loss on disposal of property and equipment	0	619
Stock based compensation	8,987	40,839
(Increase) decrease in:
Accounts receivable	(156,969)	218,163
Inventories	(384,280)	(569,393)
Prepaid expenses	12,081	11,286
Income taxes receivable	(4,435)	6,596
Increase (decrease) in:
Accounts payable	138,428	97,824
Accrued liabilities and customer deposits	(89,889)	(114,766)
Income taxes payable	(3,993)	0
Net cash used in operating activities	(853,226)	(235,037)
Cash flows relating to investing activities
Purchases of property and equipment	(5,517)	(8,467)
Proceeds from the sale of property and equipment	0	1,500
Net cash used in investing activities	(5,517)	(6,967)
Effect of foreign exchange translation on cash	103,679	(38,617)
Decrease in cash, cash equivalents and restricted cash	(755,064)	(280,621)
Cash, cash equivalents and restricted cash, beginning of period	2,111,533	867,607
Cash, cash equivalents and restricted cash, end of period	1,356,469	586,986
Supplemental disclosure of cash flow information
Cash paid during the period for income taxes	21,155	6,322
Cash paid during the period for interest	$ 462	$ 785

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - 6 months ended Nov. 30, 2018 - USD ($)	Total	Common Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Beginning balance at May. 31, 2018	$ 9,515,656	$ 13,085,652	$ (536,307)	$ (3,033,689)
Beginning balance, shares at May. 31, 2018	3,994,545	3,994,545
Stock-based compensation	$ 8,987	$ 8,987	0	0
Net loss	(467,089)	0	0	(467,089)
Other comprehensive loss	73,737	0	73,737	0
Ending balance at Nov. 30, 2018	$ 9,131,291	$ 13,094,639	$ (462,570)	$ (3,500,778)
Ending balance, shares at Nov. 30, 2018	3,994,545	3,994,545

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Nov. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial information included herein has been prepared by Schmitt Industries, Inc. (the Company or Schmitt) and its wholly owned subsidiaries. In the opinion of management, the accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly its financial position as of November 30, 2018 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2018 has been derived from the Annual Report on Form 10-K 10-K Revenue Recognition On June 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, The Company determines the amount of revenue it recognizes associated with the transfer of each product or service using the five-step model provided by Topic 606. For sales of products or delivery of monitoring services to all customers, including manufacturing representatives, distributors or their third-party customers, each transaction is evaluated to determine whether there is approval and commitment from both the Company and the customer for the transaction; whether the rights of each party are specifically identified; whether the transaction has commercial substance; whether collectability from the customer is probable at the inception of the contract and whether the transaction amount is defined. If a transaction to sell products or provide monitoring services meets all of the above criteria, revenue is recognized for the sales of product at the time of shipment or for monitoring services at the completion of the month in which monitoring services are provided. The Company incurs commissions associated with the sales of products, which are accrued and expensed at the time the product is shipped. These amounts are recorded within general, administration and sales expense. The Company also incurs costs related to shipping and handling of its products, the costs of which are expensed as incurred as a component of cost of sales. Shipping and handling fees billed to customers are recognized at the time of shipment as a component of net sales. 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. Restricted Cash Restricted cash consists of an amount received from a customer in December 2017 as part of an on-going The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of November 30, 2018 and May 31, 2018 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the six months ended November 30, 2018: November 30, 2018 May 31, 2018 Cash and cash equivalents $ 1,299,886 $ 2,053,181 Restricted cash 56,583 58,352 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,356,469 $ 2,111,533 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 $101,304 and $95,207 as of November 30, 2018 and May 31, 2018, respectively. Inventories Inventories are valued at the lower of cost or net realizable value with cost determined on the average cost basis. Costs included in inventories consist of materials, labor and manufacturing overhead, which are related to the purchase or production of inventories. Write-downs, when required, are made to reduce excess inventories to their net realizable values. Such estimates are based on assumptions regarding future demand and market conditions. If actual conditions become less favorable than the assumptions used, an additional inventory write-down may be required. As of November 30, 2018 and May 31, 2018, inventories consisted of: November 30, 2018 May 31, 2018 Raw materials $ 2,822,375 $ 2,796,691 Work-in-process 1,045,126 1,009,424 Finished goods 2,209,553 1,904,773 $ 6,077,054 $ 5,710,888 Property and Equipment Property and equipment are stated at cost, less accumulated 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 November 30, 2018 and May 31, 2018, property and equipment consisted of: November 30, 2018 May 31, 2018 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,257,784 1,252,598 Vehicles 44,704 44,704 3,416,012 3,410,826 Less accumulated depreciation (2,681,325 ) (2,639,911 ) $ 734,687 $ 770,915 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, The Company is currently evaluating the impact of this guidance, including reviewing the standard’s provisions and gathering and analyzing data to support further evaluation of all real estate and non-real

Stock Options and Stock-Based C

Stock Options and Stock-Based Compensation	6 Months Ended
	Nov. 30, 2018
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 six months ended November 30, 2018, the Company has computed the value of all stock options granted using the Black-Scholes option pricing model as prescribed by ASC Topic 718 using the following assumptions: Six Months Ended November 30, 2018 Risk-free interest rate 3.1 % Expected life 6.0 years Expected volatility 46.3 % At November 30, 2018, the Company had a total of 334,999 outstanding stock options (289,164 vested and exercisable and 45,835 non-vested) Outstanding Options Exercisable Options Number of Weighted Weighted Number of Weighted 162,499 $ 1.70 7.7 131,664 $ 1.70 30,000 2.49 7.2 15,000 2.53 87,500 2.82 5.4 87,500 2.82 55,000 3.65 2.1 55,000 3.65 334,999 2.38 6.1 289,164 2.45 Options granted, exercised, and forfeited or canceled under the Company’s stock option plan during the six months ended November 30, 2018 are summarized as follows: Six Months Ended Number of Weighted Options outstanding - beginning of period 318,332 $ 2.36 Options granted 25,000 2.53 Options exercised 0 0 Options forfeited/canceled (8,333 ) 1.70 Options outstanding - end of period 334,999 2.38

EPS Reconciliation

EPS Reconciliation	6 Months Ended
	Nov. 30, 2018
Earnings Per Share [Abstract]
EPS Reconciliation	NOTE 3: EPS RECONCILIATION Three Months Ended Six Months Ended 2018 2017 2018 2017 Weighted average shares (basic) 3,994,545 2,995,910 3,994,545 2,995,910 Effect of dilutive stock options 0 28,189 0 0 Weighted average shares (diluted) 3,994,545 3,024,099 3,994,545 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	6 Months Ended
	Nov. 30, 2018
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 allow for the deferred tax asset to 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 November 30, 2018 and May 31, 2018. Interest and penalties associated with uncertain tax positions are recognized as components of the “Provision for income taxes.” The liability for payment of interest and penalties was $0 as of November 30, 2018 and May 31, 2018. Several tax years are subject to examination by major tax jurisdictions. In the United States, federal tax years ended May 31, 2015 and after are subject to examination. In the United Kingdom, tax years ended May 31, 2013 and after are subject to examination. Effective Tax Rate The effective tax rate on consolidated net loss was 2.8% for the six months ended November 30, 2018. 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 2019 will be approximately 9.8% due to the items noted above.

Segment of Business

Segment of Business	6 Months Ended
	Nov. 30, 2018
Segment Reporting [Abstract]
Segment 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 November 30, 2018 2017 Balancer Measurement Balancer Measurement Net sales $ 2,345,480 $ 1,157,998 $ 2,230,846 $ 1,540,034 Operating income (loss) $ (343,717 ) $ 119,405 $ (88,986 ) $ 189,765 Depreciation expense $ 11,571 $ 8,999 $ 16,388 $ 9,361 Amortization expense $ 0 $ 26,146 $ 0 $ 26,146 Capital expenditures $ 267 $ 0 $ 889 $ 0 Six Months Ended November 30, 2018 2017 Balancer Measurement Balancer Measurement Net sales $ 4,539,812 $ 2,404,119 $ 4,301,243 $ 2,553,285 Operating income (loss) $ (606,218 ) $ 268,104 $ (300,766 ) $ 256,263 Depreciation expense $ 23,643 $ 17,998 $ 33,370 $ 18,983 Amortization expense $ 0 $ 52,292 $ 0 $ 52,292 Capital expenditures $ 5,517 $ 0 $ 8,467 $ 0 Geographic Information – Net Sales by Geographic Area Three Months Ended November 30, Six Months Ended November 30, 2018 2017 2018 2017 North America $ 1,965,706 $ 2,484,977 $ 4,165,907 $ 4,276,078 Europe 505,788 457,036 879,251 974,899 Asia 977,175 795,483 1,801,951 1,544,905 Other markets 54,809 33,384 96,822 58,646 Total net sales $ 3,503,478 $ 3,770,880 $ 6,943,931 $ 6,854,528 Three Months Ended November 30, 2018 2017 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (262,909 ) $ 38,597 $ 31,655 $ 69,124 Depreciation expense $ 20,570 $ 0 $ 25,749 $ 0 Amortization expense $ 26,146 $ 0 $ 26,146 $ 0 Capital expenditures $ 267 $ 0 $ 889 $ 0 Six Months Ended November 30, 2018 2017 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (394,099 ) 55,985 $ (183,810 ) 139,307 Depreciation expense $ 41,641 $ 0 $ 52,353 $ 0 Amortization expense $ 52,292 $ 0 $ 52,292 $ 0 Capital expenditures $ 5,517 $ 0 $ 8,467 $ 0 (1) “Europe” is defined in the above chart to include results from the European subsidiary, Schmitt Europe Ltd. (2) “United States” is defined to include remainder of the results not included in the European subsidiary. Segment and Geographic Assets November 30, 2018 May 31, 2018 Segment assets to total assets Balancer $ 6,505,775 $ 6,461,974 Measurement 3,071,352 2,712,553 Corporate assets 1,360,904 2,111,533 Total assets $ 10,938,031 $ 11,286,060 Geographic assets to long-lived assets United States (2) $ 734,687 $ 770,915 Europe (1) 0 0 Total long-lived assets $ 734,687 $ 770,915 Geographic assets to total assets United States (2) $ 9,748,277 $ 10,110,683 Europe (1) 1,189,754 1,175,377 Total assets $ 10,938,031 $ 11,286,060 (1) “Europe” includes assets held by the European subsidiary, Schmitt Europe Ltd. (2) “United States” includes remainder of the assets not held by the European subsidiary.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Nov. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial information included herein has been prepared by Schmitt Industries, Inc. (the Company or Schmitt) and its wholly owned subsidiaries. In the opinion of management, the accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly its financial position as of November 30, 2018 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2018 has been derived from the Annual Report on Form 10-K 10-K
Revenue Recognition	Revenue Recognition On June 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, The Company determines the amount of revenue it recognizes associated with the transfer of each product or service using the five-step model provided by Topic 606. For sales of products or delivery of monitoring services to all customers, including manufacturing representatives, distributors or their third-party customers, each transaction is evaluated to determine whether there is approval and commitment from both the Company and the customer for the transaction; whether the rights of each party are specifically identified; whether the transaction has commercial substance; whether collectability from the customer is probable at the inception of the contract and whether the transaction amount is defined. If a transaction to sell products or provide monitoring services meets all of the above criteria, revenue is recognized for the sales of product at the time of shipment or for monitoring services at the completion of the month in which monitoring services are provided. The Company incurs commissions associated with the sales of products, which are accrued and expensed at the time the product is shipped. These amounts are recorded within general, administration and sales expense. The Company also incurs costs related to shipping and handling of its products, the costs of which are expensed as incurred as a component of cost of sales. Shipping and handling fees billed to customers are recognized at the time of shipment as a component of net sales.
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.
Restricted Cash	Restricted Cash Restricted cash consists of an amount received from a customer in December 2017 as part of an on-going The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of November 30, 2018 and May 31, 2018 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the six months ended November 30, 2018: November 30, 2018 May 31, 2018 Cash and cash equivalents $ 1,299,886 $ 2,053,181 Restricted cash 56,583 58,352 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,356,469 $ 2,111,533
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 $101,304 and $95,207 as of November 30, 2018 and May 31, 2018, respectively.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value with cost determined on the average cost basis. Costs included in inventories consist of materials, labor and manufacturing overhead, which are related to the purchase or production of inventories. Write-downs, when required, are made to reduce excess inventories to their net realizable values. Such estimates are based on assumptions regarding future demand and market conditions. If actual conditions become less favorable than the assumptions used, an additional inventory write-down may be required. As of November 30, 2018 and May 31, 2018, inventories consisted of: November 30, 2018 May 31, 2018 Raw materials $ 2,822,375 $ 2,796,691 Work-in-process 1,045,126 1,009,424 Finished goods 2,209,553 1,904,773 $ 6,077,054 $ 5,710,888
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less accumulated 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 November 30, 2018 and May 31, 2018, property and equipment consisted of: November 30, 2018 May 31, 2018 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,257,784 1,252,598 Vehicles 44,704 44,704 3,416,012 3,410,826 Less accumulated depreciation (2,681,325 ) (2,639,911 ) $ 734,687 $ 770,915
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, The Company is currently evaluating the impact of this guidance, including reviewing the standard’s provisions and gathering and analyzing data to support further evaluation of all real estate and non-real

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Nov. 30, 2018
Accounting Policies [Abstract]
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of November 30, 2018 and May 31, 2018 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the six months ended November 30, 2018: November 30, 2018 May 31, 2018 Cash and cash equivalents $ 1,299,886 $ 2,053,181 Restricted cash 56,583 58,352 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,356,469 $ 2,111,533
Inventories	As of November 30, 2018 and May 31, 2018, inventories consisted of: November 30, 2018 May 31, 2018 Raw materials $ 2,822,375 $ 2,796,691 Work-in-process 1,045,126 1,009,424 Finished goods 2,209,553 1,904,773 $ 6,077,054 $ 5,710,888
Summary of Property and Equipment	As of November 30, 2018 and May 31, 2018, property and equipment consisted of: November 30, 2018 May 31, 2018 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,257,784 1,252,598 Vehicles 44,704 44,704 3,416,012 3,410,826 Less accumulated depreciation (2,681,325 ) (2,639,911 ) $ 734,687 $ 770,915

Stock Options and Stock-Based_2

Stock Options and Stock-Based Compensation (Tables)	6 Months Ended
	Nov. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Fair Value of Options	To determine stock-based compensation expense recognized for those options granted during the six months ended November 30, 2018, the Company has computed the value of all stock options granted using the Black-Scholes option pricing model as prescribed by ASC Topic 718 using the following assumptions: Six Months Ended November 30, 2018 Risk-free interest rate 3.1 % Expected life 6.0 years Expected volatility 46.3 %
Schedule of Outstanding Stock Options	The Company estimates that $17,386 will be recorded as additional stock-based compensation expense over a weighted-average period of 1.4 years for all options that were outstanding as of November 30, 2018, but which were not yet vested. Outstanding Options Exercisable Options Number of Weighted Weighted Number of Weighted 162,499 $ 1.70 7.7 131,664 $ 1.70 30,000 2.49 7.2 15,000 2.53 87,500 2.82 5.4 87,500 2.82 55,000 3.65 2.1 55,000 3.65 334,999 2.38 6.1 289,164 2.45
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 six months ended November 30, 2018 are summarized as follows: Six Months Ended Number of Weighted Options outstanding - beginning of period 318,332 $ 2.36 Options granted 25,000 2.53 Options exercised 0 0 Options forfeited/canceled (8,333 ) 1.70 Options outstanding - end of period 334,999 2.38

EPS Reconciliation (Tables)

EPS Reconciliation (Tables)	6 Months Ended
	Nov. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	Three Months Ended Six Months Ended 2018 2017 2018 2017 Weighted average shares (basic) 3,994,545 2,995,910 3,994,545 2,995,910 Effect of dilutive stock options 0 28,189 0 0 Weighted average shares (diluted) 3,994,545 3,024,099 3,994,545 2,995,910

Segment of Business (Tables)

Segment of Business (Tables)	6 Months Ended
	Nov. 30, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information Three Months Ended November 30, 2018 2017 Balancer Measurement Balancer Measurement Net sales $ 2,345,480 $ 1,157,998 $ 2,230,846 $ 1,540,034 Operating income (loss) $ (343,717 ) $ 119,405 $ (88,986 ) $ 189,765 Depreciation expense $ 11,571 $ 8,999 $ 16,388 $ 9,361 Amortization expense $ 0 $ 26,146 $ 0 $ 26,146 Capital expenditures $ 267 $ 0 $ 889 $ 0 Six Months Ended November 30, 2018 2017 Balancer Measurement Balancer Measurement Net sales $ 4,539,812 $ 2,404,119 $ 4,301,243 $ 2,553,285 Operating income (loss) $ (606,218 ) $ 268,104 $ (300,766 ) $ 256,263 Depreciation expense $ 23,643 $ 17,998 $ 33,370 $ 18,983 Amortization expense $ 0 $ 52,292 $ 0 $ 52,292 Capital expenditures $ 5,517 $ 0 $ 8,467 $ 0
Geographic Information	Geographic Information – Net Sales by Geographic Area Three Months Ended November 30, Six Months Ended November 30, 2018 2017 2018 2017 North America $ 1,965,706 $ 2,484,977 $ 4,165,907 $ 4,276,078 Europe 505,788 457,036 879,251 974,899 Asia 977,175 795,483 1,801,951 1,544,905 Other markets 54,809 33,384 96,822 58,646 Total net sales $ 3,503,478 $ 3,770,880 $ 6,943,931 $ 6,854,528
Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas	Three Months Ended November 30, 2018 2017 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (262,909 ) $ 38,597 $ 31,655 $ 69,124 Depreciation expense $ 20,570 $ 0 $ 25,749 $ 0 Amortization expense $ 26,146 $ 0 $ 26,146 $ 0 Capital expenditures $ 267 $ 0 $ 889 $ 0 Six Months Ended November 30, 2018 2017 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (394,099 ) 55,985 $ (183,810 ) 139,307 Depreciation expense $ 41,641 $ 0 $ 52,353 $ 0 Amortization expense $ 52,292 $ 0 $ 52,292 $ 0 Capital expenditures $ 5,517 $ 0 $ 8,467 $ 0 (1) “Europe” is defined in the above chart to include results from the European subsidiary, Schmitt Europe Ltd. (2) “United States” is defined to include remainder of the results not included in the European subsidiary.
Segment and Geographic Assets	Segment and Geographic Assets November 30, 2018 May 31, 2018 Segment assets to total assets Balancer $ 6,505,775 $ 6,461,974 Measurement 3,071,352 2,712,553 Corporate assets 1,360,904 2,111,533 Total assets $ 10,938,031 $ 11,286,060 Geographic assets to long-lived assets United States (2) $ 734,687 $ 770,915 Europe (1) 0 0 Total long-lived assets $ 734,687 $ 770,915 Geographic assets to total assets United States (2) $ 9,748,277 $ 10,110,683 Europe (1) 1,189,754 1,175,377 Total assets $ 10,938,031 $ 11,286,060 (1) “Europe” includes assets held by the European subsidiary, Schmitt Europe Ltd. (2) “United States” includes remainder of the assets not held by the European subsidiary.

Significant Accounting Policies

Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($)	Nov. 30, 2018	May 31, 2018	Nov. 30, 2017	May 31, 2017
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 1,299,886	$ 2,053,181
Restricted cash	56,583	58,352
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows	$ 1,356,469	$ 2,111,533	$ 586,986	$ 867,607

Significant Accounting Polici_2

Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2018	May 31, 2018
Significant Accounting Policies [Line Items]
Allowance for doubtful accounts	$ 101,304	$ 95,207
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

Significant Accounting Polici_3

Significant Accounting Policies - Schedule of Inventories (Detail) - USD ($)	Nov. 30, 2018	May 31, 2018
Inventory, Net [Abstract]
Raw materials	$ 2,822,375	$ 2,796,691
Work-in-process	1,045,126	1,009,424
Finished goods	2,209,553	1,904,773
Inventories	$ 6,077,054	$ 5,710,888

Significant Accounting Polici_4

Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($)	Nov. 30, 2018	May 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 3,416,012	$ 3,410,826
Less accumulated depreciation	(2,681,325)	(2,639,911)
Property, plant and equipment, net	734,687	770,915
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	1,257,784	1,252,598
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 44,704	$ 44,704

Stock Options and Stock Based C

Stock Options and Stock Based Compensation - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2018	May 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend rate	0.00%
Outstanding stock options, total	334,999	318,332
Vested and exercisable stock options	289,164
Non-vested shares	45,835
Weighted average exercise price	$ 2.38	$ 2.36
Additional stock-based compensation expense	$ 17,386
Weighted average period over which unrecognized compensation is expected to be recognized	1 year 4 months 24 days

Stock Options and Stock Based_2

Stock Options and Stock Based Compensation - Schedule of Fair Value of Options (Detail)	6 Months Ended
	Nov. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate	3.10%
Expected life	6 years
Expected volatility	46.30%

Stock Options and Stock Based_3

Stock Options and Stock Based Compensation - Schedule of Outstanding Stock Options (Detail) - $ / shares	6 Months Ended
	Nov. 30, 2018	May 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	334,999	318,332
Weighted Average Exercise Price, Outstanding Options	$ 2.38	$ 2.36
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	6 years 1 month 6 days
Exercisable Options, Number of Shares	289,164
Exercisable Options, Weighted Average Exercise Price	$ 2.45
Options 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	162,499
Weighted Average Exercise Price, Outstanding Options	$ 1.70
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	7 years 8 months 12 days
Exercisable Options, Number of Shares	131,664
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	30,000
Weighted Average Exercise Price, Outstanding Options	$ 2.49
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	7 years 2 months 12 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	87,500
Weighted Average Exercise Price, Outstanding Options	$ 2.82
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	5 years 4 months 24 days
Exercisable Options, Number of Shares	87,500
Exercisable Options, Weighted Average Exercise Price	$ 2.82
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	2 years 1 month 6 days
Exercisable Options, Number of Shares	55,000
Exercisable Options, Weighted Average Exercise Price	$ 3.65

Stock Options and Stock Based_4

Stock Options and Stock Based Compensation - Schedule of Options Granted, Exercised, and Forfeited or Canceled (Detail)	6 Months Ended
	Nov. 30, 2018$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Options outstanding - beginning of period | shares	318,332
Number of Shares, Options granted | shares	25,000
Number of Shares, Options exercised | shares	0
Number of Shares, Options forfeited/canceled | shares	(8,333)
Number of Shares, Options outstanding - end of period | shares	334,999
Weighted Average Exercise Price, Options outstanding - beginning of period | $ / shares	$ 2.36
Weighted Average Exercise Price, Options granted | $ / shares	2.53
Weighted Average Exercise Price, Options exercised | $ / shares	0
Weighted Average Exercise Price, Options forfeited/canceled | $ / shares	1.70
Weighted Average Exercise Price, Options outstanding - end of period | $ / shares	$ 2.38

EPS Reconciliation - Schedule o

EPS Reconciliation - Schedule of Earnings Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Earnings Per Share [Abstract]
Weighted average shares (basic)	3,994,545	2,995,910	3,994,545	2,995,910
Effect of dilutive stock options	0	28,189	0	0
Weighted average shares (diluted)	3,994,545	3,024,099	3,994,545	2,995,910

EPS Reconciliation - Additional

EPS Reconciliation - Additional Information (Detail)	6 Months Ended
	Nov. 30, 2018shares
Earnings Per Share [Abstract]
Antidilutive common stock equivalents	0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Nov. 30, 2018	May 31, 2019	May 31, 2018
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	2.80%
Forecast [Member]
Income Tax Contingency [Line Items]
Effective tax rate for Fiscal 2019		9.80%
Domestic Tax Authority [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2,015
Foreign Tax Authority [Member] | United Kingdom [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2,013

Segment of Business - Additiona

Segment of Business - Additional Information (Detail)	6 Months Ended
	Nov. 30, 2018SegmentMarkets
Segment Reporting [Abstract]
Number of reportable business segments | Segment	2
Number of geographic markets in which entity operates | Markets	3

Segment of Business - Segment I

Segment of Business - Segment Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 3,503,478	$ 3,770,880	$ 6,943,931	$ 6,854,528
Operating income (loss)	(224,312)	100,779	(338,114)	(44,503)
Capital expenditures			5,517	8,467
Measurement [Member]
Segment Reporting Information [Line Items]
Net sales	1,157,998	1,540,034	2,404,119	2,553,285
Operating income (loss)	119,405	189,765	268,104	256,263
Depreciation expense	8,999	9,361	17,998	18,983
Amortization expense	26,146	26,146	52,292	52,292
Capital expenditures	0	0	0	0
Balancer [Member]
Segment Reporting Information [Line Items]
Net sales	2,345,480	2,230,846	4,539,812	4,301,243
Operating income (loss)	(343,717)	(88,986)	(606,218)	(300,766)
Depreciation expense	11,571	16,388	23,643	33,370
Amortization expense	0	0	0	0
Capital expenditures	$ 267	$ 889	$ 5,517	$ 8,467

Segment of Business - Geographi

Segment of Business - Geographic Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 3,503,478	$ 3,770,880	$ 6,943,931	$ 6,854,528
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	1,965,706	2,484,977	4,165,907	4,276,078
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	505,788	457,036	879,251	974,899
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	977,175	795,483	1,801,951	1,544,905
Other markets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 54,809	$ 33,384	$ 96,822	$ 58,646

Segment of Business - Segment_2

Segment of Business - Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas (Detail) - USD ($)		3 Months Ended		6 Months Ended
		Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)		$ (224,312)	$ 100,779	$ (338,114)	$ (44,503)
Capital expenditures				5,517	8,467
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)	[1]	(262,909)	31,655	(394,099)	(183,810)
Depreciation expense	[1]	20,570	25,749	41,641	52,353
Amortization expense	[1]	26,146	26,146	52,292	52,292
Capital expenditures	[1]	267	889	5,517	8,467
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating income (loss)	[2]	38,597	69,124	55,985	139,307
Depreciation expense	[2]	0	0	0	0
Amortization expense	[2]	0	0	0	0
Capital expenditures	[2]	$ 0	$ 0	$ 0	$ 0
[1]	"United States" is defined to include remainder of the results not included in the European subsidiary.
[2]	"Europe" is defined in the above chart to include results from the European subsidiary, Schmitt Europe Ltd.

Segment of Business - Segment a

Segment of Business - Segment and Geographic Assets (Detail) - USD ($)		Nov. 30, 2018	May 31, 2018
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets		$ 10,938,031	$ 11,286,060
Geographic assets to long-lived assets		734,687	770,915
Segment and geographic assets to total assets		10,938,031	11,286,060
United States [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	[1]	9,748,277	10,110,683
Geographic assets to long-lived assets	[1]	734,687	770,915
Segment and geographic assets to total assets	[1]	9,748,277	10,110,683
Europe [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets	[2]	1,189,754	1,175,377
Geographic assets to long-lived assets	[2]	0	0
Segment and geographic assets to total assets	[2]	1,189,754	1,175,377
Operating Segments [Member] | Balancer [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets		6,505,775	6,461,974
Segment and geographic assets to total assets		6,505,775	6,461,974
Operating Segments [Member] | Measurement [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets		3,071,352	2,712,553
Segment and geographic assets to total assets		3,071,352	2,712,553
Corporate Assets [Member]
Segment Reporting Information [Line Items]
Segment and geographic assets to total assets		1,360,904	2,111,533
Segment and geographic assets to total assets		$ 1,360,904	$ 2,111,533
[1]	"United States" includes remainder of the assets not held by the European subsidiary.
[2]	"Europe" includes assets held by the European subsidiary, Schmitt Europe Ltd.