Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Feb. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SMIT | |
Entity Registrant Name | SCHMITT INDUSTRIES INC | |
Entity Central Index Key | 0000922612 | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,032,878 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,168,930 | $ 2,053,181 |
Restricted cash | 56,835 | 58,352 |
Accounts receivable, net | 2,078,116 | 2,047,032 |
Inventories | 5,751,164 | 5,710,888 |
Prepaid expenses | 193,326 | 148,924 |
Income taxes receivable | 206 | 0 |
Total current assets | 9,248,577 | 10,018,377 |
Property and equipment, net | 863,361 | 770,915 |
Other assets | ||
Intangible assets, net | 418,331 | 496,768 |
TOTAL ASSETS | 10,530,269 | 11,286,060 |
Current liabilities | ||
Accounts payable | 977,436 | 1,024,256 |
Accrued commissions | 194,943 | 194,797 |
Accrued payroll liabilities | 192,953 | 188,568 |
Other accrued liabilities | 437,209 | 358,790 |
Income taxes payable | 0 | 3,993 |
Current portion of long-term liabilities | 21,424 | 0 |
Total current liabilities | 1,823,965 | 1,770,404 |
Long-term liabilities | 35,601 | 0 |
Stockholders' equity | ||
Common stock, no par value, 20,000,000 shares authorized, 4,032,878 shares issued and outstanding at February 28, 2019 and 3,994,545 shares issued and outstanding at May 31, 2018 | 13,156,496 | 13,085,652 |
Accumulated other comprehensive loss | (509,826) | (536,307) |
Accumulated deficit | (3,975,967) | (3,033,689) |
Total stockholders' equity | 8,670,703 | 9,515,656 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,530,269 | $ 11,286,060 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 28, 2019 | 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 | 4,032,878 | 3,994,545 |
Common stock, shares outstanding | 4,032,878 | 3,994,545 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,082,181 | $ 3,238,858 | $ 10,026,112 | $ 10,093,386 |
Cost of sales | 2,069,798 | 1,916,345 | 6,310,824 | 5,645,372 |
Gross profit | 1,012,383 | 1,322,513 | 3,715,288 | 4,448,014 |
Operating expenses: | ||||
General, administration and sales | 1,507,233 | 1,286,718 | 4,452,091 | 4,279,505 |
Research and development | 20,532 | 75,790 | 116,693 | 253,007 |
Total operating expenses | 1,527,765 | 1,362,508 | 4,568,784 | 4,532,512 |
Operating loss | (515,382) | (39,995) | (853,496) | (84,498) |
Other income (expense), net | 46,779 | 61,815 | (69,468) | 88,436 |
Income (loss) before income taxes | (468,603) | 21,820 | (922,964) | 3,938 |
Provision for income taxes | 6,586 | 6,267 | 19,314 | 19,235 |
Net income (loss) | $ (475,189) | $ 15,553 | $ (942,278) | $ (15,297) |
Net income (loss) per common share: | ||||
Basic | $ (0.12) | $ 0 | $ (0.24) | $ 0 |
Weighted average number of common shares, basic | 4,000,990 | 3,706,050 | 3,996,670 | 3,230,022 |
Diluted | $ (0.12) | $ 0 | $ (0.24) | $ 0 |
Weighted average number of common shares, diluted | 4,000,990 | 3,769,814 | 3,996,670 | 3,230,022 |
Comprehensive income (loss) | ||||
Net income (loss) | $ (475,189) | $ 15,553 | $ (942,278) | $ (15,297) |
Foreign currency translation adjustment | (47,256) | (51,983) | 26,481 | (51,543) |
Total comprehensive income (loss) | $ (522,445) | $ (36,430) | $ (915,797) | $ (66,840) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Cash flows relating to operating activities | ||
Net loss | $ (942,278) | $ (15,297) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 139,424 | 156,326 |
(Gain) loss on disposal of property and equipment | 0 | 619 |
Stock based compensation | 5,678 | 42,167 |
Reserve for excess or obsolete inventories | 407,730 | 0 |
(Increase) decrease in: | ||
Accounts receivable | (30,061) | 291,273 |
Inventories | (447,717) | (1,218,520) |
Prepaid expenses | (44,503) | (32,086) |
Income taxes receivable | (206) | 7,310 |
Increase (decrease) in: | ||
Accounts payable | (46,263) | (261,532) |
Accrued liabilities and customer deposits | (77) | (69,917) |
Income taxes payable | (3,993) | 3,465 |
Net cash used in operating activities | (962,266) | (1,096,192) |
Cash flows relating to investing activities | ||
Purchases of property and equipment | (4,674) | (8,467) |
Proceeds from the sale of property and equipment | 0 | 1,500 |
Net cash used in investing activities | (4,674) | (6,967) |
Cash flows relating to financing activities | ||
Payments on long-term liabilities | (8,366) | 0 |
Common stock issued on exercise of stock options | 65,166 | 0 |
Proceeds from the rights offering, net of expenses | 0 | 2,386,029 |
Net cash provided by financing activities | 56,800 | 2,386,029 |
Effect of foreign exchange translation on cash | 24,372 | (103,507) |
Change in cash, cash equivalents and restricted cash | (885,768) | 1,179,363 |
Cash, cash equivalents and restricted cash, beginning of period | 2,111,533 | 867,607 |
Cash, cash equivalents and restricted cash, end of period | 1,225,765 | 2,046,970 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for income taxes | 23,512 | 8,460 |
Cash paid during the period for interest | 8,985 | 1,114 |
Supplemental disclosure of non-cash investing and financing activities | ||
Acquisition of property and equipment through financed payables | $ 148,760 | $ 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Feb. 28, 2019 - 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 options exercised net of related tax benefit of $0, shares | 38,333 | 38,333 | ||
Stock options exercised net of related tax benefit of $0, value | $ 65,166 | $ 65,166 | 0 | 0 |
Stock-based compensation | 5,678 | 5,678 | 0 | 0 |
Net loss | (942,278) | 0 | 0 | (942,278) |
Other comprehensive income | 26,481 | 0 | 26,481 | 0 |
Ending balance at Feb. 28, 2019 | $ 8,670,703 | $ 13,156,496 | $ (509,826) | $ (3,975,967) |
Ending balance, shares at Feb. 28, 2019 | 4,032,878 | 4,032,878 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 9 Months Ended |
Feb. 28, 2019USD ($) | |
Stock options exercised net of related tax benefit of $0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Feb. 28, 2019 | |
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 28, 2019 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 for the fiscal year ended May 31, 2018. 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, 2018. 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, 2019. Revenue Recognition On June 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements or related disclosures. 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 contract. The timeline for services being provided under this contract has been extended and is expected to be completed during the second half of Fiscal 2019, at which time the restrictions on this payment will lapse. The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of February 28, 2019 and May 31, 2018 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the nine months ended February 28, 2019: February 28, 2019 May 31, 2018 Cash and cash equivalents $ 1,168,930 $ 2,053,181 Restricted cash 56,835 58,352 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,225,765 $ 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 $26,263 and $95,207 as of February 28, 2019 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 February 28, 2019 and May 31, 2018, inventories consisted of: February 28, 2019 May 31, 2018 Raw materials $ 2,411,474 $ 2,796,691 Work-in-process 1,056,251 1,009,424 Finished goods 2,283,439 1,904,773 $ 5,751,164 $ 5,710,888 Inventories, as noted in the above table and on the Consolidated Balance Sheets as of February 28, 2019 and May 31, 2018, are presented net of inventory reserves of $1,150,597 and $742,900 as of February 28, 2019 and May 31, 2018. Reserve adjustments of $(407,558) and $(6,555) for the three months ended February 28, 2019 and 2018, respectively, are included in cost of sales on the Consolidated Statements of Operations. Reserve adjustments of $(407,730) and $11,035 for the nine months ended February 28, 2019 and 2018, respectively, are included in cost of sales on the Consolidated Statements of Operations. 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 February 28, 2019 and May 31, 2018, property and equipment consisted of: February 28, 2019 May 31, 2018 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,406,725 1,252,598 Vehicles 44,704 44,704 3,564,953 3,410,826 Less accumulated depreciation (2,701,592 ) (2,639,911 ) $ 863,361 $ 770,915 Long-term liabilities and current portion of long-term liabilities Long-term liabilities consist of a financing arrangement executed for the purchase of certain property and equipment over a term of 36 months. Future minimum commitments under this agreement for the each of the years ending May 31 are as follows: Years ending May 31, 2019 $ 4,218 2020 25,307 2021 25,307 2022 8,431 Total future minimum payments 63,263 Less: amount representing interest (6,238 ) Present value of minimum payments of long-term liabilities $ 57,025 Current portion of long-term liabilities 21,424 Long-term liabilities 35,601 $ 57,025 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for most leases previously classified as operating leases. The ASU is required to be applied using a modified retrospective approach at the beginning of the earliest period presented, with optional practical expedients. The FASB recently proposed an optional transition alternative, which would allow for application of the guidance at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period presented. The Company will adopt the new standard on June 1, 2019. 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 estate leases. The Company is also evaluating the impact of the accounting standard on the Company’s financial statement disclosures, systems, processes and controls. |
Stock Options and Stock-Based C
Stock Options and Stock-Based Compensation | 9 Months Ended |
Feb. 28, 2019 | |
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 28, 2019, 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: Nine Months Ended February 28, 2019 Risk-free interest rate 3.1% Expected life 6.0 years Expected volatility 46.3% At February 28, 2019, the Company had a total of 266,166 outstanding stock options (243,665 vested and exercisable and 22,501 non-vested) with a weighted average exercise price of $2.42. The Company estimates that $897 will be recorded as additional stock-based compensation expense during the next fiscal quarter for all options that were outstanding as of February 28, 2019, but which were not yet vested. Outstanding Options Exercisable Options Number of Weighted Average Weighted Average Number of Shares Weighted Average 124,166 $ 1.70 8.1 101,665 $ 1.70 15,000 2.53 4.6 15,000 2.53 82,000 2.82 5.8 82,000 2.82 45,000 3.65 2.3 45,000 3.65 266,166 2.42 6.2 243,665 2.49 Options granted, exercised, and forfeited or canceled under the Company’s stock option plan during the nine months ended February 28, 2019 are summarized as follows: Nine Months Ended Number of Weighted Options outstanding - beginning of period 318,332 $ 2.36 Options granted 27,000 2.55 Options exercised (38,333 ) 1.70 Options forfeited/canceled (40,833 ) 2.66 Options outstanding - end of period 266,166 2.42 |
Weighted Average Shares and Rec
Weighted Average Shares and Reconciliation | 9 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares And Reconciliation Disclosure [Text Block] | NOTE 3: WEIGHTED AVERAGE SHARES AND RECONCILIATION Three Months Ended February 28, Nine Months Ended February 28, 2019 2018 2019 2018 Weighted average shares (basic) 4,000,990 3,706,050 3,996,670 3,230,022 Effect of dilutive stock options 0 63,764 0 0 Weighted average shares (diluted) 4,000,990 3,769,814 3,996,670 3,230,022 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 | 9 Months Ended |
Feb. 28, 2019 | |
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, 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 February 28, 2019 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 February 28, 2019 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 2013 Effective Tax Rate The effective tax rate on consolidated net loss was 2.1% for the nine months ended February 28, 2019. 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 3.2% due to the items noted above. |
Segment of Business
Segment of Business | 9 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment of Business | NOTE 5: SEGMENTS OF BUSINESS The Company has two reportable business segments, Balancer and Measurement. Balancer focuses on dynamic balancing and process control systems for the machine tool industry and Measurement focuses on laser-based test and measurement systems and ultrasonic measurement products. The Company operates in three principal geographic markets: North America, Europe and Asia. Segment Information Three Months Ended February 28, 2019 2018 Balancer Measurement Balancer Measurement Net sales $ 1,961,636 $ 1,120,545 $ 2,137,811 $ 1,101,047 Operating income (loss) $ (593,462 ) $ 78,080 $ (39,720 ) $ (275 ) Depreciation expense $ 10,346 $ 9,000 $ 16,300 $ 9,235 Amortization expense $ 0 $ 26,145 $ 0 $ 26,146 Capital expenditures $ 147,917 $ 0 $ 0 $ 0 Nine Months Ended February 28, 2019 2018 Balancer Measurement Balancer Measurement Net sales $ 6,501,448 $ 3,524,664 $ 6,439,054 $ 3,654,332 Operating income (loss) $ (1,199,680 ) $ 346,184 $ (340,486 ) $ 255,988 Depreciation expense $ 33,989 $ 26,998 $ 49,670 $ 28,218 Amortization expense $ 0 $ 78,437 $ 0 $ 78,438 Capital expenditures $ 153,434 $ 0 $ 8,467 $ 0 Inventory reserve adjustments of $(291,427) for the Balancer segment and $(116,131) for the Measurement segment are included in operating income (loss) for the three and nine months ended February 28, 2019, respectively. Geographic Information – Net Sales by Geographic Area Three Months Ended February 28, Nine Months Ended February 28, 2019 2018 2019 2018 North America $ 1,899,961 $ 1,898,796 $ 6,065,868 $ 6,174,874 Europe 548,059 552,018 1,427,310 1,526,917 Asia 587,136 752,712 2,389,087 2,297,617 Other markets 47,025 35,332 143,847 93,978 Total net sales $ 3,082,181 $ 3,238,858 $ 10,026,112 $ 10,093,386 Three Months Ended February 28, 2019 2018 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (565,426 ) $ 50,044 $ (123,205 ) $ 83,210 Depreciation expense $ 19,346 $ 0 $ 25,535 $ 0 Amortization expense $ 26,145 $ 0 $ 26,146 $ 0 Capital expenditures $ 147,917 $ 0 $ 0 $ 0 Nine Months Ended February 28, 2019 2018 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (959,525 ) 106,029 $ (307,015 ) 222,517 Depreciation expense $ 60,987 $ 0 $ 77,888 $ 0 Amortization expense $ 78,437 $ 0 $ 78,438 $ 0 Capital expenditures $ 153,434 $ 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 February 28, 2019 May 31, 2018 Segment assets to total assets Balancer $ 6,292,198 $ 6,461,974 Measurement 3,012,100 2,712,553 Corporate assets 1,225,971 2,111,533 Total assets $ 10,530,269 $ 11,286,060 Geographic assets to long-lived assets United States (2) $ 863,361 $ 770,915 Europe (1) 0 0 Total long-lived assets $ 863,361 $ 770,915 Geographic assets to total assets United States (2) $ 9,314,335 $ 10,110,683 Europe (1) 1,215,934 1,175,377 Total assets $ 10,530,269 $ 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. |
Restructuring and Related Charg
Restructuring and Related Charges | 9 Months Ended |
Feb. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | NOTE 6: RESTRUCTURING AND RELATED CHARGES In November 2018 Schmitt announced a strategic reorganization following the appointment of two new board members. The reorganization will position the Company to better capitalize on the growing SBS Balancer business while streamlining the company and maximizing shareholder value through the disposition of non-core assets. The reorganization has involved a streamlining of contractors and services, and employee severance and termination benefits that have increased operating expenses in the third quarter. In conjunction with these efforts, an inventory adjustment of $( 407,558 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Feb. 28, 2019 | |
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 28, 2019 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 for the fiscal year ended May 31, 2018. 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, 2018. 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, 2019. |
Revenue Recognition | Revenue Recognition On June 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements or related disclosures. 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 contract. The timeline for services being provided under this contract has been extended and is expected to be completed during the second half of Fiscal 2019, at which time the restrictions on this payment will lapse. The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of February 28, 2019 and May 31, 2018 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the nine months ended February 28, 2019: February 28, 2019 May 31, 2018 Cash and cash equivalents $ 1,168,930 $ 2,053,181 Restricted cash 56,835 58,352 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,225,765 $ 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 $26,263 and $95,207 as of February 28, 2019 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 February 28, 2019 and May 31, 2018, inventories consisted of: February 28, 2019 May 31, 2018 Raw materials $ 2,411,474 $ 2,796,691 Work-in-process 1,056,251 1,009,424 Finished goods 2,283,439 1,904,773 $ 5,751,164 $ 5,710,888 Inventories, as noted in the above table and on the Consolidated Balance Sheets as of February 28, 2019 and May 31, 2018, are presented net of inventory reserves of $1,150,597 and $742,900 as of February 28, 2019 and May 31, 2018. Reserve adjustments of $(407,558) and $(6,555) for the three months ended February 28, 2019 and 2018, respectively, are included in cost of sales on the Consolidated Statements of Operations. Reserve adjustments of $(407,730) and $11,035 for the nine months ended February 28, 2019 and 2018, respectively, are included in cost of sales on the Consolidated Statements of Operations. |
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 February 28, 2019 and May 31, 2018, property and equipment consisted of: February 28, 2019 May 31, 2018 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,406,725 1,252,598 Vehicles 44,704 44,704 3,564,953 3,410,826 Less accumulated depreciation (2,701,592 ) (2,639,911 ) $ 863,361 $ 770,915 |
Long-term liabilities and current portion of long-term liabilities | Long-term liabilities and current portion of long-term liabilities Long-term liabilities consist of a financing arrangement executed for the purchase of certain property and equipment over a term of 36 months. Future minimum commitments under this agreement for the each of the years ending May 31 are as follows: Years ending May 31, 2019 $ 4,218 2020 25,307 2021 25,307 2022 8,431 Total future minimum payments 63,263 Less: amount representing interest (6,238 ) Present value of minimum payments of long-term liabilities $ 57,025 Current portion of long-term liabilities 21,424 Long-term liabilities 35,601 $ 57,025 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for most leases previously classified as operating leases. The ASU is required to be applied using a modified retrospective approach at the beginning of the earliest period presented, with optional practical expedients. The FASB recently proposed an optional transition alternative, which would allow for application of the guidance at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period presented. The Company will adopt the new standard on June 1, 2019. 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 estate leases. The Company is also evaluating the impact of the accounting standard on the Company’s financial statement disclosures, systems, processes and controls. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 and May 31, 2018 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the nine months ended February 28, 2019: February 28, 2019 May 31, 2018 Cash and cash equivalents $ 1,168,930 $ 2,053,181 Restricted cash 56,835 58,352 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,225,765 $ 2,111,533 |
Inventories | As of February 28, 2019 and May 31, 2018, inventories consisted of: February 28, 2019 May 31, 2018 Raw materials $ 2,411,474 $ 2,796,691 Work-in-process 1,056,251 1,009,424 Finished goods 2,283,439 1,904,773 $ 5,751,164 $ 5,710,888 |
Summary of Property and Equipment | As of February 28, 2019 and May 31, 2018, property and equipment consisted of: February 28, 2019 May 31, 2018 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,406,725 1,252,598 Vehicles 44,704 44,704 3,564,953 3,410,826 Less accumulated depreciation (2,701,592 ) (2,639,911 ) $ 863,361 $ 770,915 |
Long-term Purchase Commitment | Long-term liabilities consist of a financing arrangement executed for the purchase of certain property and equipment over a term of 36 months. Future minimum commitments under this agreement for the each of the years ending May 31 are as follows: Years ending May 31, 2019 $ 4,218 2020 25,307 2021 25,307 2022 8,431 Total future minimum payments 63,263 Less: amount representing interest (6,238 ) Present value of minimum payments of long-term liabilities $ 57,025 Current portion of long-term liabilities 21,424 Long-term liabilities 35,601 $ 57,025 |
Stock Options and Stock-Based_2
Stock Options and Stock-Based Compensation (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
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 nine months ended February 28, 2019, 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: Nine Months Ended February 28, 2019 Risk-free interest rate 3.1% Expected life 6.0 years Expected volatility 46.3% |
Schedule of Outstanding Stock Options | The Company estimates that $897 will be recorded as additional stock-based compensation expense during the next fiscal quarter for all options that were outstanding as of February 28, 2019, but which were not yet vested. Outstanding Options Exercisable Options Number of Weighted Average Weighted Average Number of Shares Weighted Average 124,166 $ 1.70 8.1 101,665 $ 1.70 15,000 2.53 4.6 15,000 2.53 82,000 2.82 5.8 82,000 2.82 45,000 3.65 2.3 45,000 3.65 266,166 2.42 6.2 243,665 2.49 |
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 nine months ended February 28, 2019 are summarized as follows: Nine Months Ended Number of Weighted Options outstanding - beginning of period 318,332 $ 2.36 Options granted 27,000 2.55 Options exercised (38,333 ) 1.70 Options forfeited/canceled (40,833 ) 2.66 Options outstanding - end of period 266,166 2.42 |
Weighted Average Shares and R_2
Weighted Average Shares and Reconciliation (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended February 28, Nine Months Ended February 28, 2019 2018 2019 2018 Weighted average shares (basic) 4,000,990 3,706,050 3,996,670 3,230,022 Effect of dilutive stock options 0 63,764 0 0 Weighted average shares (diluted) 4,000,990 3,769,814 3,996,670 3,230,022 |
Segment of Business (Tables)
Segment of Business (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Three Months Ended February 28, 2019 2018 Balancer Measurement Balancer Measurement Net sales $ 1,961,636 $ 1,120,545 $ 2,137,811 $ 1,101,047 Operating income (loss) $ (593,462 ) $ 78,080 $ (39,720 ) $ (275 ) Depreciation expense $ 10,346 $ 9,000 $ 16,300 $ 9,235 Amortization expense $ 0 $ 26,145 $ 0 $ 26,146 Capital expenditures $ 147,917 $ 0 $ 0 $ 0 Nine Months Ended February 28, 2019 2018 Balancer Measurement Balancer Measurement Net sales $ 6,501,448 $ 3,524,664 $ 6,439,054 $ 3,654,332 Operating income (loss) $ (1,199,680 ) $ 346,184 $ (340,486 ) $ 255,988 Depreciation expense $ 33,989 $ 26,998 $ 49,670 $ 28,218 Amortization expense $ 0 $ 78,437 $ 0 $ 78,438 Capital expenditures $ 153,434 $ 0 $ 8,467 $ 0 |
Geographic Information | Geographic Information – Net Sales by Geographic Area Three Months Ended February 28, Nine Months Ended February 28, 2019 2018 2019 2018 North America $ 1,899,961 $ 1,898,796 $ 6,065,868 $ 6,174,874 Europe 548,059 552,018 1,427,310 1,526,917 Asia 587,136 752,712 2,389,087 2,297,617 Other markets 47,025 35,332 143,847 93,978 Total net sales $ 3,082,181 $ 3,238,858 $ 10,026,112 $ 10,093,386 |
Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas | Three Months Ended February 28, 2019 2018 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (565,426 ) $ 50,044 $ (123,205 ) $ 83,210 Depreciation expense $ 19,346 $ 0 $ 25,535 $ 0 Amortization expense $ 26,145 $ 0 $ 26,146 $ 0 Capital expenditures $ 147,917 $ 0 $ 0 $ 0 Nine Months Ended February 28, 2019 2018 United States (2) Europe (1) United States (2) Europe (1) Operating income (loss) $ (959,525 ) 106,029 $ (307,015 ) 222,517 Depreciation expense $ 60,987 $ 0 $ 77,888 $ 0 Amortization expense $ 78,437 $ 0 $ 78,438 $ 0 Capital expenditures $ 153,434 $ 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 February 28, 2019 May 31, 2018 Segment assets to total assets Balancer $ 6,292,198 $ 6,461,974 Measurement 3,012,100 2,712,553 Corporate assets 1,225,971 2,111,533 Total assets $ 10,530,269 $ 11,286,060 Geographic assets to long-lived assets United States (2) $ 863,361 $ 770,915 Europe (1) 0 0 Total long-lived assets $ 863,361 $ 770,915 Geographic assets to total assets United States (2) $ 9,314,335 $ 10,110,683 Europe (1) 1,215,934 1,175,377 Total assets $ 10,530,269 $ 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 ($) | Feb. 28, 2019 | May 31, 2018 | Feb. 28, 2018 | May 31, 2017 |
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,168,930 | $ 2,053,181 | ||
Restricted cash | 56,835 | 58,352 | ||
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows | $ 1,225,765 | $ 2,111,533 | $ 2,046,970 | $ 867,607 |
Significant Accounting Polici_2
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | May 31, 2018 | |
Significant Accounting Policies [Line Items] | |||||
Allowance for doubtful accounts | $ 26,263 | $ 26,263 | $ 95,207 | ||
Inventory Reserve Adjustments | 1,150,597 | 1,150,597 | $ 742,900 | ||
Reserve Adjustments for Excess or Obsolete Inventories | (407,558) | ||||
Cost of Sales [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Reserve Adjustments for Excess or Obsolete Inventories | $ (407,558) | $ (6,555) | $ (407,730) | $ 11,035 | |
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 ($) | Feb. 28, 2019 | May 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 2,411,474 | $ 2,796,691 |
Work-in-process | 1,056,251 | 1,009,424 |
Finished goods | 2,283,439 | 1,904,773 |
Inventories | $ 5,751,164 | $ 5,710,888 |
Significant Accounting Polici_4
Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,564,953 | $ 3,410,826 |
Less accumulated depreciation | (2,701,592) | (2,639,911) |
Property, plant and equipment, net | 863,361 | 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 | 1,406,725 | 1,252,598 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 44,704 | $ 44,704 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Long-term liabilities (Detail) | Feb. 28, 2019USD ($) |
2019 | $ 4,218 |
2020 | 25,307 |
2021 | 25,307 |
2022 | 8,431 |
Total future minimum payments | 63,263 |
Less: amount representing interest | (6,238) |
Present value of minimum payments of long-term liabilities | 57,025 |
Total | $ 57,025 |
Stock Options and Stock Based C
Stock Options and Stock Based Compensation - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Feb. 28, 2019 | May 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected dividend rate | 0.00% | |
Outstanding stock options, total | 266,166 | 318,332 |
Vested and exercisable stock options | 243,665 | |
Non-vested shares | 22,501 | |
Weighted average exercise price | $ 2.42 | $ 2.36 |
Additional stock-based compensation expense | $ 897 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 1 month 6 days |
Stock Options and Stock Based_2
Stock Options and Stock Based Compensation - Schedule of Fair Value of Options (Detail) | 9 Months Ended |
Feb. 28, 2019 | |
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 | 9 Months Ended | |
Feb. 28, 2019 | May 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding Options | 266,166 | 318,332 |
Weighted Average Exercise Price, Outstanding Options | $ 2.42 | $ 2.36 |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 6 years 2 months 12 days | |
Exercisable Options, Number of Shares | 243,665 | |
Exercisable Options, Weighted Average Exercise Price | $ 2.49 | |
Options 1 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding Options | 124,166 | |
Weighted Average Exercise Price, Outstanding Options | $ 1.70 | |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 8 years 1 month 6 days | |
Exercisable Options, Number of Shares | 101,665 | |
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 | 4 years 7 months 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 | 82,000 | |
Weighted Average Exercise Price, Outstanding Options | $ 2.82 | |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 5 years 9 months 18 days | |
Exercisable Options, Number of Shares | 82,000 | |
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 | 45,000 | |
Weighted Average Exercise Price, Outstanding Options | $ 3.65 | |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 2 years 3 months 18 days | |
Exercisable Options, Number of Shares | 45,000 | |
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) | 9 Months Ended |
Feb. 28, 2019$ / 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 | 27,000 |
Number of Shares, Options exercised | shares | (38,333) |
Number of Shares, Options forfeited/canceled | shares | (40,833) |
Number of Shares, Options outstanding - end of period | shares | 266,166 |
Weighted Average Exercise Price, Options outstanding - beginning of period | $ / shares | $ 2.36 |
Weighted Average Exercise Price, Options granted | $ / shares | 2.55 |
Weighted Average Exercise Price, Options exercised | $ / shares | 1.70 |
Weighted Average Exercise Price, Options forfeited/canceled | $ / shares | 2.66 |
Weighted Average Exercise Price, Options outstanding - end of period | $ / shares | $ 2.42 |
Weighted Average Shares and R_3
Weighted Average Shares and Reconciliation - Schedule of Weighted Average of Basic and Diluted Shares (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares (basic) | 4,000,990 | 3,706,050 | 3,996,670 | 3,230,022 |
Effect of dilutive stock options | 0 | 63,764 | 0 | 0 |
Weighted average shares (diluted) | 4,000,990 | 3,769,814 | 3,996,670 | 3,230,022 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |
Feb. 28, 2019 | 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 | 2.10% | ||
Forecast [Member] | |||
Income Tax Contingency [Line Items] | |||
Effective tax rate for Fiscal 2019 | 3.20% | ||
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax examination period under examination | 2015 | ||
Foreign Tax Authority [Member] | United Kingdom [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax examination period under examination | 2013 |
Segment of Business - Additiona
Segment of Business - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended |
Feb. 28, 2019 | Feb. 28, 2019 | |
Segment Reporting Information [Line Items] | ||
Reserve Adjustments for Excess or Obsolete Inventories | $ 407,558 | |
Balancer [Member] | ||
Segment Reporting Information [Line Items] | ||
Reserve Adjustments for Excess or Obsolete Inventories | $ (291,427) | |
Measurement [Member] | ||
Segment Reporting Information [Line Items] | ||
Reserve Adjustments for Excess or Obsolete Inventories | $ (116,131) |
Segment of Business - Segment I
Segment of Business - Segment Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 3,082,181 | $ 3,238,858 | $ 10,026,112 | $ 10,093,386 |
Operating income (loss) | (515,382) | (39,995) | (853,496) | (84,498) |
Capital expenditures | 4,674 | 8,467 | ||
Measurement [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,120,545 | 1,101,047 | 3,524,664 | 3,654,332 |
Operating income (loss) | 78,080 | (275) | 346,184 | 255,988 |
Depreciation expense | 9,000 | 9,235 | 26,998 | 28,218 |
Amortization expense | 26,145 | 26,146 | 78,437 | 78,438 |
Capital expenditures | 0 | 0 | 0 | 0 |
Balancer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,961,636 | 2,137,811 | 6,501,448 | 6,439,054 |
Operating income (loss) | (593,462) | (39,720) | (1,199,680) | (340,486) |
Depreciation expense | 10,346 | 16,300 | 33,989 | 49,670 |
Amortization expense | 0 | 0 | 0 | 0 |
Capital expenditures | $ 147,917 | $ 0 | $ 153,434 | $ 8,467 |
Segment of Business - Geographi
Segment of Business - Geographic Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 3,082,181 | $ 3,238,858 | $ 10,026,112 | $ 10,093,386 |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 1,899,961 | 1,898,796 | 6,065,868 | 6,174,874 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 548,059 | 552,018 | 1,427,310 | 1,526,917 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 587,136 | 752,712 | 2,389,087 | 2,297,617 |
Other markets [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 47,025 | $ 35,332 | $ 143,847 | $ 93,978 |
Segment of Business - Segment_2
Segment of Business - Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Operating income (loss) | $ (515,382) | $ (39,995) | $ (853,496) | $ (84,498) | ||
Capital expenditures | 4,674 | 8,467 | ||||
United States [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Operating income (loss) | (565,426) | (123,205) | (959,525) | [1] | (307,015) | [1] |
Depreciation expense | 19,346 | 25,535 | 60,987 | [1] | 77,888 | [1] |
Amortization expense | 26,145 | 26,146 | 78,437 | [1] | 78,438 | [1] |
Capital expenditures | 147,917 | 0 | 153,434 | [1] | 8,467 | [1] |
Europe [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Operating income (loss) | 50,044 | 83,210 | 106,029 | [2] | 222,517 | [2] |
Depreciation expense | 0 | 0 | 0 | [2] | 0 | [2] |
Amortization expense | 0 | 0 | 0 | [2] | 0 | [2] |
Capital expenditures | $ 0 | $ 0 | $ 0 | [2] | $ 0 | [2] |
[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 ($) | Feb. 28, 2019 | May 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Segment and geographic assets to total assets | $ 10,530,269 | $ 11,286,060 | |
Geographic assets to long-lived assets | 863,361 | 770,915 | |
Segment and geographic assets to total assets | 10,530,269 | 11,286,060 | |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment and geographic assets to total assets | [1] | 9,314,335 | 10,110,683 |
Geographic assets to long-lived assets | [1] | 863,361 | 770,915 |
Segment and geographic assets to total assets | [1] | 9,314,335 | 10,110,683 |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment and geographic assets to total assets | [2] | 1,215,934 | 1,175,377 |
Geographic assets to long-lived assets | [2] | 0 | 0 |
Segment and geographic assets to total assets | [2] | 1,215,934 | 1,175,377 |
Operating Segments [Member] | Balancer [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment and geographic assets to total assets | 6,292,198 | 6,461,974 | |
Segment and geographic assets to total assets | 6,292,198 | 6,461,974 | |
Operating Segments [Member] | Measurement [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment and geographic assets to total assets | 3,012,100 | 2,712,553 | |
Segment and geographic assets to total assets | 3,012,100 | 2,712,553 | |
Corporate Assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment and geographic assets to total assets | 1,225,971 | 2,111,533 | |
Segment and geographic assets to total assets | $ 1,225,971 | $ 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. |
Restructuring and Related Cha_2
Restructuring and Related Charges - Additional Information (Detail) | 3 Months Ended |
Feb. 28, 2019USD ($) | |
Reserve Adjustments for Excess or Obsolete Inventories | $ (407,558) |