Schmitt Industries (SMIT) 10-Q 14 Jan 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Nov. 30, 2019	Dec. 31, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	SCHMITT INDUSTRIES INC
Trading Symbol	SMIT
Entity Central Index Key	0000922612
Current Fiscal Year End Date	--05-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		4,156,632
Title of 12(g) Security	Common Stock
Security Exchange Name	NASDAQ
Entity Address, State or Province	OR

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Nov. 30, 2019	May 31, 2019
Current assets
Cash and cash equivalents	$ 12,105,462	$ 1,467,435
Restricted cash	420,000	0
Accounts receivable, net	395,241	631,126
Inventories	1,077,618	1,241,132
Prepaid expenses	47,575	101,617
Current assets held for sale	0	5,192,384
Total current assets	14,045,896	8,633,694
Property and equipment, net	657,354	676,387
Other assets
Intangible assets, net	339,894	392,185
Noncurrent assets held for sale	0	162,987
TOTAL ASSETS	15,043,144	9,865,253
Current liabilities
Accounts payable	226,266	102,566
Accrued commissions	41,516	71,663
Accrued payroll liabilities	22,150	112,351
Customer deposits and prepayments	103,002	78,376
Other accrued liabilities	699,923	128,353
Income taxes payable	69,100	491
Current portion of long-term liabilities	0	20,828
Current liabilities held for sale	0	849,149
Total current liabilities	1,161,957	1,363,777
Long-term liabilities	0	28,543
Total liabilities	1,161,957	1,392,320
Stockholders' equity
Common stock, no par value, 20,000,000 shares authorized, 4,032,878 shares issued and outstanding at August 31, 2019 and May 31, 2019	13,438,041	13,245,439
Accumulated other comprehensive loss	0	(527,827)
Retained earnings (accumulated deficit)	443,146	(4,244,679)
Total stockholders' equity	13,881,187	8,472,933
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 15,043,144	$ 9,865,253

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Nov. 30, 2019	May 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	4,127,632	4,032,878
Common stock, shares outstanding	4,127,632	4,032,878

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Income Statement [Abstract]
Net revenue	$ 1,033,102	$ 1,157,999	$ 2,127,879	$ 2,404,121
Cost of revenue	643,348	675,872	1,260,771	1,443,308
Gross profit	389,754	482,127	867,108	960,813
Operating expenses:
General, administration and sales	993,230	800,671	1,697,382	1,556,651
Research and development	5,377	24,832	8,463	47,408
Total operating expenses	998,607	825,503	1,705,845	1,604,059
Operating (loss)	(608,853)	(343,376)	(838,737)	(643,246)
Other income, net	5,356	6,006	9,723	12,776
(Loss) before income taxes	(603,497)	(337,370)	(829,014)	(630,470)
Provision for income taxes	(4,439)	2,114	(7,829)	4,227
Net (loss) from continuing operations	(599,058)	(339,484)	(821,185)	(634,697)
Income from discontinued operations, including gain on sale, net of tax	5,117,005	84,212	5,509,010	167,608
Net income (loss)	$ 4,517,947	$ (255,272)	$ 4,687,825	$ (467,089)
Net (loss) per common share from continuing operations:
Net loss per common share, basic	$ (0.15)	$ (0.08)	$ (0.20)	$ (0.16)
Weighted average number of common shares, basic	4,083,538	3,994,545	4,030,709	3,994,545
Net loss per common share, diluted	$ (0.15)	$ (0.08)	$ (0.20)	$ (0.16)
Weighted average number of common shares, diluted	4,083,538	3,994,545	4,030,709	3,994,545
Net income per common share from discontinued operations:
Net income per common share, basic	$ 1.25	$ 0.02	$ 1.37	$ 0.04
Weighted average number of common shares, basic	4,083,538	3,994,545	4,030,709	3,994,545
Net income per common share, diluted	$ 1.25	$ 0.02	$ 1.37	$ 0.04
Weighted average number of common shares, diluted	4,083,538	3,994,545	4,030,709	3,994,545
Net income (loss) per common share:
Net income (loss) per common share, basic	$ 1.11	$ (0.06)	$ 1.16	$ (0.12)
Weighted average number of common shares, basic	4,083,538	3,994,545	4,030,709	3,994,545
Net income (loss) per common share, diluted	$ 1.11	$ (0.06)	$ 1.16	$ (0.12)
Weighted average number of common shares, diluted	4,083,538	3,994,545	4,030,709	3,994,545
Comprehensive income (loss)
Net income (loss)	$ 4,517,947	$ (255,272)	$ 4,687,825	$ (467,089)
Foreign currency translation adjustment	527,827	(5,907)	527,827	73,737
Total comprehensive income (loss)	$ 5,045,774	$ (261,179)	$ 5,215,652	$ (393,352)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Cash flows relating to operating activities
Net income (loss)	$ 4,687,825	$ (467,089)
Pre-tax (earnings) from discontinued operations	(532,103)	(176,108)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	83,277	88,974
Gain on disposal of property and equipment	65,020	0
Stock based compensation	192,602	8,987
Gain on sale of discontinued operations before income taxes	(5,059,845)	0
(Increase) decrease in:
Accounts receivable	235,885	(179,867)
Inventories	163,514	(263,254)
Prepaid expenses	54,042	31,390
Income taxes receivable	0	(4,435)
Increase (decrease) in:
Accounts payable	123,701	255,912
Accrued liabilities and customer deposits	436,683	(59,095)
Income taxes payable	68,609	(3,993)
Net cash provided by (used in) operating activities - continuing operations	519,210	(768,578)
Net cash provided by (used in) operating activities - discontinued operations	172,839	(84,648)
Net cash provided by (used in) operating activities	692,049	(853,226)
Cash flows relating to investing activities
Purchases of property and equipment	(14,690)	(5,517)
Proceeds from the sale of property and equipment	12,000	0
Proceeds from sale of net assets of discontinued operations	10,319,589	0
Net cash provided by (used in) investing activities - continuing operations	10,316,899	(5,517)
Net cash provided by (used in) investing activities - discontinuing operations	(12,693)	0
Net cash provided by (used in) investing activities	10,304,206	(5,517)
Cash flows relating to financing activities
Payments on long-term liabilities	(10,201)	0
Net cash used in investing activities	(10,201)	0
Effect of foreign exchange translation on cash	71,973	103,679
Increase (decrease) in cash, cash equivalents and restricted cash	11,058,027	(755,064)
Cash, cash equivalents and restricted cash, beginning of period	1,467,435	2,111,533
Cash, cash equivalents and restricted cash, end of period	12,525,462	1,356,469
Supplemental disclosure of cash flow information
Cash paid during the period for income taxes	4,289	21,155
Cash paid during the period for interest	$ 2,435	$ 462

Consolidated Statement of Chang

Consolidated Statement of Changes In Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Retained earnings (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
Stock-based compensation	8,987	$ 8,987	0	0
Net income (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
Beginning balance at May. 31, 2019	$ 8,472,933	$ 13,245,439	(527,827)	(4,244,679)
Beginning balance, shares at May. 31, 2019	4,032,878	4,032,878
Stock compensation expense for restricted stock units granted to employees and directors	$ 192,602	$ 192,602
Restricted stock units exercised, shares		94,754
Net income (loss)	4,687,825	$ 0	0	4,687,825
Other comprehensive loss	527,827	0	527,827	0
Ending balance at Nov. 30, 2019	$ 13,881,187	$ 13,438,041	$ 0	$ 443,146
Ending balance, shares at Nov. 30, 2019	4,127,632	4,127,632

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Nov. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation In the opinion of management, the accompanying unaudited Consolidated Financial Statements Consolidated Balance Sheet 10-K 10-K As described in Note 8, the Company sold the Schmitt Dynamic Balance Systems (“SBS”) business line on November 22, 2019. After the sale of the SBS business, based on the types of products and services sold, and an analysis of how the Principles of Consolidation These Consolidated Financial Statements include those of the Company and its wholly owned subsidiaries: Schmitt Measurement Systems, Inc. and Schmitt Industries (Canada) Limited. All significant intercompany accounts and transactions have been eliminated in the preparation of the Consolidated Financial Statements. Reclassification Certain amounts in the prior period Consolidated Balance Sheet have been reclassified to conform to the presentation of the current period. Revenue Recognition The Company determines the amount of revenue it recognizes associated with the transfer of each product or service. For sales of products or delivery of monitoring services to all 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, which are recognized at the time of shipment as a component of net revenues, were $6,534 and $7,896 for the six months ended November 30, 2019 and November 30, 2018, respectively. Cash, Cash Equivalents and Restricted Cash The Company generally invests its excess cash in money market funds. The Company’s investment policy also allows for cash to be invested in investment grade highly liquid securities, and the Company considers securities that are highly liquid, readily convertible into cash and have original maturities of less than three months when purchased to be cash equivalents. The Company’s cash consists of demand deposits in large financial institutions and money market funds. At times, balances may exceed federally insured limits. Restricted cash consists of an amount held in escrow related to the sale of the balancer business segment, as described in Note 8. Once certain events are complete, the restrictions on this cash payment will be released. 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, 2019 and May 31, 2019 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the respective periods then ended: Statement of Cash Flows for the six months ended November 30, 2019 and year ended May 31, 2019: November 30, 2019 May 31, 2019 Cash and cash equivalents $ 12,105,462 $ 1,467,435 Restricted cash 420,000 — Total cash, cash equivalents and restricted cash $ 12,525,462 $ 1,467,435 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. In the event there is doubt about whether a customer account is collectible, a reserve is provided. If these analyses lead management to the conclusion that a customer account is uncollectible, the balance will be directly charged to bad debt expense. The allowance for doubtful accounts was $81,158 and $36,826 as of November 30, 2019 and May 31, 2019, 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, 2019 and May 31, 2019 inventories consisted of: November 30, 2019 May 31, 2019 Raw materials $ 316,565 $ 347,095 Work-in-process 397,370 376,375 Finished goods 363,683 517,662 $ 1,077,618 $ 1,241,132 Property and Equipment Property and equipment are stated at cost, less depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of three seven November 30, 2019 May 31, 2019 Land $ 299,000 $ 299,000 Buildings and improvements 1,826,503 1,814,524 Furniture, fixtures and equipment 416,956 421,456 2,542,459 2,534,980 Less accumulated depreciation (1,885,105 ) (1,858,593 ) $ 657,354 $ 676,387 Depreciation expense for the six months ended November 30, 2019 and 2018 was $30,986 and $36,683, respectively. Lease Accounting The Company determines if an arrangement is a lease or a service contract at inception. Where an arrangement is a lease the Company determines if it is an operating lease or a finance lease. Subsequently, if the arrangement is modified the Company reevaluates the classification. Buildings leased to others under operating leases are included in property, plant and equipment. See Note 6. Intangible Assets Amortizable intangible assets, which include purchased technology and patents, are amortized over their estimated useful lives ranging from five to seventeen years. As of November 30, 2019 and May 31, 2019 Amortization expense for both Customer Deposits and Prepayments Customer deposits and prepayments consists of amounts received from customers as prepayments for orders that have been received and have been produced but have not yet shipped, credit balances for items returned by customers for which refunds have not yet been provided and deposits made by customers in advance of production. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Nov. 30, 2019
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS [Abstract]
Recently Issued Accounting Pronouncements	NOTE 2: RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard on leasing. The new standard requires companies to record most leased assets and liabilities on the balance sheet, and also proposed a dual model for recognizing expense. The Company adopted the standard as of June 1, 2019, with retroactive reporting for prior periods (the comparative option). Financial Statements. In January 2017, the FASB issued a new accounting standard which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This guidance was effective for the Company beginning in 2019. Adoption of these accounting changes did not have a material impact on the Consolidated Financial Statements. In May 2017, the FASB issued a new accounting standard which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic 718. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance is effective for the Company beginning in 2019. Adoption of these accounting changes did not have a material impact on the Consolidated Financial Statements. In June 2018, the FASB issued a new accounting standard which provides guidance that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The new guidance is effective for the Company beginning in 2019, with early adoption permitted. Adoption of these accounting changes did not have a material impact on the Consolidated Financial Statements .

Stock Options And Stock-Based C

Stock Options And Stock-Based Compensation	6 Months Ended
	Nov. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options And Stock-Based Compensation	NOTE 3: 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. Stock Options 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. (the “Common Stock”) at the date of grant based on the historical volatility of its C S • Expected Dividend Yield. 0 • Expected Forfeitures. pre-vesting There were no options granted during the six months ended November 30, 2019. At November 30, 2019, the Company had outstanding stock options to purchase shares of Common Stock all of which are Outstanding Options Exercisable Options Number of Shares Weighted Weighted Number Weighted 124,166 $ 1.70 6.2 124,166 $ 1.70 15,000 2.53 2.6 15,000 2.53 37,500 2.82 3.0 37,500 2.82 25,000 2.90 3.4 25,000 2.90 35,000 3.65 0.5 35,000 3.65 236,666 $ 2.35 4.3 236,666 $ 2.35 Options granted, exercised, canceled and expired under the Company’s stock-based compensation plans during the six months ended November 30, 2019 are summarized as follows: Six Months Ended Number of Weighted Weighted Aggregate Options outstanding and exercisable - beginning of period 254,166 $ 2.41 5.8 Options granted 0 0.00 0.0 Options exercised 0 0.00 0.0 Options forfeited/canceled (17,500 ) 3.29 0.0 Options outstanding and exercisable - end of period 236,666 $ 2.35 4.3 $ 556,165 Restricted Stock Units Service-based and market-based restricted stock units are granted to key employees and members of the Company’s Board of Directors. Service-based restricted stock units generally fully vest on the first anniversary date of the award. Market-based restricted stock units are contingent on continued service and vest based on 15-day C S The lattice model utilizes multiple input variables that determine the probability of satisfying the market conditions stipulated in the award and calculates the fair value of each restricted stock unit. The Company used the following assumptions in determining the fair value of the restricted stock units: Year Ended Expected stock price volatility 50.1% - 57.5% Expected divident yield 0% Average risk-free interest rate 2.55% - 2.98% During the six months ended November 30, 2019, three tranches of the market-based restricted stock units granted in F During the six months ended November 30, 2019, 41,976 service-based restricted stock units were granted and 35,754 immediately vested on the date of the grants. Restricted stock unit activity under the Company’s stock-based compensation plans during the six months ended November 30, 2019 is summarized as follows: Number Weighted Aggregate Non-vested 98,000 $ 2.94 Restricted stock units granted 41,976 2.42 Restricted stock units vested (71,754 ) (2.65 ) Non-vested 68,222 $ 2.93 $ 199,890 During the six months ended November 30, 2019, the Company issued 23,000 During the six months ended November 30, 2019, total restricted stock unit compensation expense recognized was $192,602 and has been recorded as general, administration and sales expense in the Consolidated Statements of Operations and Comprehensive Loss. Stock compensation expense related to non-vested restricted stock units with a time vesting condition was $932.

Weighted Average Shares and Rec

Weighted Average Shares and Reconciliation	6 Months Ended
	Nov. 30, 2019
Earnings Per Share [Abstract]
Weighted Average Shares and Reconciliation	NOTE 4: WEIGHTED AVERAGE SHARES AND RECONCILIATION Basic net income (loss) per share is computed using the weighted average number of shares of Common Stock outstanding. Diluted net income (loss) per share is computed using the weighted average number of shares of Common Stock outstanding, adjusted for dilutive incremental shares attributed to outstanding options to purchase Common Stock and restricted stock units vested but not issued. 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. For the three and six months ended November 30, 2019, potentially dilutive securities consisted of options of 236,666 shares of C S C S C S Basic weighted average shares for the three and six months ended November 30 is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted average shares (basic) 4,083,538 3,994,545 4,030,709 3,994,545 Effect of dilutive stock options — — — — Weighted average shares (diluted) 4,083,538 3,994,545 4,030,709 3,994,545

Income Taxes

Income Taxes	6 Months Ended
	Nov. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 5: 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, 2019 and May 31, 2019. 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, 2019 and May 31, 2019. Several tax years are subject to examination by major tax jurisdictions. In the United States, federal tax years ended May 31, 2016 and after are subject to examination. In the United Kingdom, tax years for the years ended May 31, 2018 and after are subject to examination. Effective Tax Rate The effective tax rate for the three months ended November 30, 2019 was 1.5%. The effective tax rate on consolidated net income for the three months ended November 30, 2019 and 2018 differs from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance and the impact of certain expenses not being deductible for income tax reporting purposes. Management believes the effective tax rate for Fiscal 2020 will be approximately 1.6% due to the items noted above.

Leases

Leases	6 Months Ended
	Nov. 30, 2019
Leases [Abstract]
Leases	NOTE 6: LEASES On November 22, 2019, the Company entered in a commercial lease agreement, which will be accounted for pursuant to (ASU) No. 2016-02, non-lease The lessor commercial agreement contains a 10-year be Years ending May 31, 2020 $ 139,692 2021 283,578 2022 291,906 2023 300,666 2024 309,870 Thereafter 1,876,764 Total undiscounted cash flow $ 3,202,476

Customer Concentration

Customer Concentration	6 Months Ended
	Nov. 30, 2019
Risks and Uncertainties [Abstract]
Customer Concentration	NOTE 7: CUSTOMER CONCENTRATION The Company’s largest 3 customers accounted for 14.6%, 10.1%, and 4.6% of our revenues, respectively, for the three months ended November 30, 2019 and 14.8%, 10.3%, and 4.4% of our revenues, respectively, for the six months ended November 30, 2019.

Discountinued Operations

Discountinued Operations	6 Months Ended
	Nov. 30, 2019
Disclosure Text Block [Abstract]
Discountinued Operations	NOTE 8: DISCONTINUED OPERATIONS On October 10, 2019, the Company entered into an agreement (“Purchase Agreement”) to sell the Schmitt Dynamic Balance Systems (“SBS”) business line to Tosei Engineering Corp. and Tosei America, Inc. (collectively “Tosei” or Buyer) for a purchase price of $10,500,000 in cash. The transaction closed on November 22, 2019 and included certain assets held by the U.S. parent company and all the outstanding stock of the UK subsidiary, Schmitt Europe Limited. As a result, the financial position, results of operations, and cash flows relating to our SBS business line are reported as discontinued operations in the accompanying financial statements. The purchase agreement contains customary requirements of closing, including adjustments based on the final amount of working capital transferred to the Buyer. The consideration included $9,940,000 in unrestricted cash from the Buyer at closing, plus $420,000 to be placed into an escrow account, net of $140,000 in minimum cash settled via the funds flow at closing. Remaining escrow funds become unrestricted after certain events are completed and after one year from closing. The Purchase Agreement requires an adjustment to purchase price after closing based on the difference between (a) the calculated amount of working capital at closing and (b) the target working capital of $4,200,000. The closing working capital calculation has not been completed; however, the Company does not expect any resulting adjustment to be significant. In connection with the Purchase Agreement, the Company entered into a Transition Service Agreement (“TSA”) with the Buyer during the transition of certain accounting and treasury processes. The Company has collected $196,000 of cash on behalf of the Buyer via the TSA that is included in the cash and cash equivalents and other accrued liabilities balances at November 30, 2019. The following table summarizes the consideration and gain recognized in the quarter ended November 30, 2019 associated with the sale of the SBS Business: Purchase Price $ 10,500,000 Cash in SEL 69,157 Less: Net assets sold 4,460,177 Minimum cash 140,000 Transaction fees 453,287 Release of cumulative translation adjustment from OCI 455,848 Plus or minus: Closing adjustments — Pre-tax $ 5,059,845 Income taxes 82,938 Gain on sale, net of income taxes $ 4,976,907 The following are the carrying amounts of assets and liabilities classified as held for sale and included as a part of discontinued operations: November 30, 2019 May 31, 2019 Accounts receivable, net $ — $ 1,365,114 Inventories — 3,777,913 Prepaid expenses — 49,357 Current assets held for sale $ — $ 5,192,384 Property and equipment, net — 162,987 Noncurrent assets held for sale $ — $ 162,987 Accounts payable $ — $ 393,773 Accrued commissions — 128,453 Accrued payroll liabilities — 127,124 Customer deposits and prepayments — 109,860 Other accrued liabilities — 89,914 Current liabilities held for sale $ — $ 849,124 Net assets held for sale $ — $ 4,506,247 The following is a composition of the line items constituting income from discontinued operations: Three Months Ended November 30, Six Months Ended November 30, 2019 2018 2019 2018 Net revenue $ 2,095,901 $ 2,345,477 $ 4,343,008 $ 4,539,809 Cost of revenue 1,210,126 1,464,499 2,374,251 2,797,717 Gross profit 885,775 880,978 1,968,757 1,742,092 Operating expenses: General, administration and sales 665,365 738,821 1,252,222 1,388,201 Research and development 26,839 23,093 35,920 48,754 Total operating expenses 692,204 761,914 1,288,142 1,436,955 Operating income 193,571 119,064 680,615 305,137 Other expense, net (65,192 ) (30,604 ) (140,923 ) (129,029 ) Income before income taxes 128,379 88,460 539,692 176,108 Provision for income taxes (11,719 ) 4,248 7,589 8,500 Net income from discontinued operations, before gain on sale, net of tax $ 140,098 $ 84,212 $ 532,103 $ 167,608

Subsequent Events

Subsequent Events	6 Months Ended
	Nov. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 9: SUBSEQUENT EVENTS On December 3, 2019, the Company announced that its Board of Directors authorized a share repurchase plan to buy up to $2 million of its C S p On December 1 7

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Nov. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited Consolidated Financial Statements Consolidated Balance Sheet 10-K 10-K As described in Note 8, the Company sold the Schmitt Dynamic Balance Systems (“SBS”) business line on November 22, 2019. After the sale of the SBS business, based on the types of products and services sold, and an analysis of how the
Principles of Consolidation	Principles of Consolidation These Consolidated Financial Statements include those of the Company and its wholly owned subsidiaries: Schmitt Measurement Systems, Inc. and Schmitt Industries (Canada) Limited. All significant intercompany accounts and transactions have been eliminated in the preparation of the Consolidated Financial Statements.
Reclassification	Reclassification Certain amounts in the prior period Consolidated Balance Sheet have been reclassified to conform to the presentation of the current period.
Revenue Recognition	Revenue Recognition The Company determines the amount of revenue it recognizes associated with the transfer of each product or service. For sales of products or delivery of monitoring services to all 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, which are recognized at the time of shipment as a component of net revenues, were $6,534 and $7,896 for the six months ended November 30, 2019 and November 30, 2018, respectively.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash The Company generally invests its excess cash in money market funds. The Company’s investment policy also allows for cash to be invested in investment grade highly liquid securities, and the Company considers securities that are highly liquid, readily convertible into cash and have original maturities of less than three months when purchased to be cash equivalents. The Company’s cash consists of demand deposits in large financial institutions and money market funds. At times, balances may exceed federally insured limits. Restricted cash consists of an amount held in escrow related to the sale of the balancer business segment, as described in Note 8. Once certain events are complete, the restrictions on this cash payment will be released. 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, 2019 and May 31, 2019 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the respective periods then ended: Statement of Cash Flows for the six months ended November 30, 2019 and year ended May 31, 2019: November 30, 2019 May 31, 2019 Cash and cash equivalents $ 12,105,462 $ 1,467,435 Restricted cash 420,000 — Total cash, cash equivalents and restricted cash $ 12,525,462 $ 1,467,435
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. In the event there is doubt about whether a customer account is collectible, a reserve is provided. If these analyses lead management to the conclusion that a customer account is uncollectible, the balance will be directly charged to bad debt expense. The allowance for doubtful accounts was $81,158 and $36,826 as of November 30, 2019 and May 31, 2019, 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, 2019 and May 31, 2019 inventories consisted of: November 30, 2019 May 31, 2019 Raw materials $ 316,565 $ 347,095 Work-in-process 397,370 376,375 Finished goods 363,683 517,662 $ 1,077,618 $ 1,241,132
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of three seven November 30, 2019 May 31, 2019 Land $ 299,000 $ 299,000 Buildings and improvements 1,826,503 1,814,524 Furniture, fixtures and equipment 416,956 421,456 2,542,459 2,534,980 Less accumulated depreciation (1,885,105 ) (1,858,593 ) $ 657,354 $ 676,387 Depreciation expense for the six months ended November 30, 2019 and 2018 was $30,986 and $36,683, respectively.
Lease Accounting	Lease Accounting The Company determines if an arrangement is a lease or a service contract at inception. Where an arrangement is a lease the Company determines if it is an operating lease or a finance lease. Subsequently, if the arrangement is modified the Company reevaluates the classification. Buildings leased to others under operating leases are included in property, plant and equipment. See Note 6.
Intangible Assets	Intangible Assets Amortizable intangible assets, which include purchased technology and patents, are amortized over their estimated useful lives ranging from five to seventeen years. As of November 30, 2019 and May 31, 2019 Amortization expense for both
Customer Deposits and Prepayments	Customer Deposits and Prepayments Customer deposits and prepayments consists of amounts received from customers as prepayments for orders that have been received and have been produced but have not yet shipped, credit balances for items returned by customers for which refunds have not yet been provided and deposits made by customers in advance of production.
Use of Estimates	Use of Estimates The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Nov. 30, 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 November 30, 2019 and May 31, 2019 to the sum of the same such amounts as shown in the Consolidated Statement of Cash Flows for the respective periods then ended: Statement of Cash Flows for the six months ended November 30, 2019 and year ended May 31, 2019: November 30, 2019 May 31, 2019 Cash and cash equivalents $ 12,105,462 $ 1,467,435 Restricted cash 420,000 — Total cash, cash equivalents and restricted cash $ 12,525,462 $ 1,467,435
Inventories	As of November 30, 2019 and May 31, 2019 inventories consisted of: November 30, 2019 May 31, 2019 Raw materials $ 316,565 $ 347,095 Work-in-process 397,370 376,375 Finished goods 363,683 517,662 $ 1,077,618 $ 1,241,132
Summary of Property and Equipment	Expenditures for maintenance and repairs are charged to expense as incurred. As of November 30, 2019 and May 31, 2019, property and equipment consisted of: November 30, 2019 May 31, 2019 Land $ 299,000 $ 299,000 Buildings and improvements 1,826,503 1,814,524 Furniture, fixtures and equipment 416,956 421,456 2,542,459 2,534,980 Less accumulated depreciation (1,885,105 ) (1,858,593 ) $ 657,354 $ 676,387

Stock Options And Stock-Based_2

Stock Options And Stock-Based Compensation (Tables)	6 Months Ended
	Nov. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Outstanding Stock Options	Outstanding Options Exercisable Options Number of Shares Weighted Weighted Number Weighted 124,166 $ 1.70 6.2 124,166 $ 1.70 15,000 2.53 2.6 15,000 2.53 37,500 2.82 3.0 37,500 2.82 25,000 2.90 3.4 25,000 2.90 35,000 3.65 0.5 35,000 3.65 236,666 $ 2.35 4.3 236,666 $ 2.35
Schedule of Options Granted, Exercised, Canceled and Expired	Options granted, exercised, canceled and expired under the Company’s stock-based compensation plans during the six months ended November 30, 2019 are summarized as follows: Six Months Ended Number of Weighted Weighted Aggregate Options outstanding and exercisable - beginning of period 254,166 $ 2.41 5.8 Options granted 0 0.00 0.0 Options exercised 0 0.00 0.0 Options forfeited/canceled (17,500 ) 3.29 0.0 Options outstanding and exercisable - end of period 236,666 $ 2.35 4.3 $ 556,165
Schedule of Fair Value of Options	The Company used the following assumptions in determining the fair value of the restricted stock units: Year Ended Expected stock price volatility 50.1% - 57.5% Expected divident yield 0% Average risk-free interest rate 2.55% - 2.98%
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	Restricted stock unit activity under the Company’s stock-based compensation plans during the six months ended November 30, 2019 is summarized as follows: Number Weighted Aggregate Non-vested 98,000 $ 2.94 Restricted stock units granted 41,976 2.42 Restricted stock units vested (71,754 ) (2.65 ) Non-vested 68,222 $ 2.93 $ 199,890

Weighted Average Shares and R_2

Weighted Average Shares and Reconciliation (Tables)	6 Months Ended
	Nov. 30, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	Basic weighted average shares for the three and six months ended November 30 is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted average shares (basic) 4,083,538 3,994,545 4,030,709 3,994,545 Effect of dilutive stock options — — — — Weighted average shares (diluted) 4,083,538 3,994,545 4,030,709 3,994,545

Leases (Tables)

Leases (Tables)	6 Months Ended
	Nov. 30, 2019
Leases [Abstract]
Schedule Of Minimum Future Lease Payments Receivable On An Undiscounted Cash Flow Basis	Minimum future lease payments receivable are as follows: Years ending May 31, 2020 $ 139,692 2021 283,578 2022 291,906 2023 300,666 2024 309,870 Thereafter 1,876,764 Total undiscounted cash flow $ 3,202,476

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Nov. 30, 2019
Schmitt Dynamic Balance Systems [Member]
Summary Of Consideration And Gain Of Discontinued Operation	The following is a composition of the line items constituting income from discontinued operations: Three Months Ended November 30, Six Months Ended November 30, 2019 2018 2019 2018 Net revenue $ 2,095,901 $ 2,345,477 $ 4,343,008 $ 4,539,809 Cost of revenue 1,210,126 1,464,499 2,374,251 2,797,717 Gross profit 885,775 880,978 1,968,757 1,742,092 Operating expenses: General, administration and sales 665,365 738,821 1,252,222 1,388,201 Research and development 26,839 23,093 35,920 48,754 Total operating expenses 692,204 761,914 1,288,142 1,436,955 Operating income 193,571 119,064 680,615 305,137 Other expense, net (65,192 ) (30,604 ) (140,923 ) (129,029 ) Income before income taxes 128,379 88,460 539,692 176,108 Provision for income taxes (11,719 ) 4,248 7,589 8,500 Net income from discontinued operations, before gain on sale, net of tax $ 140,098 $ 84,212 $ 532,103 $ 167,608
Assets And Liabilities [Member]
Summary Of Consideration And Gain Of Discontinued Operation	The following are the carrying amounts of assets and liabilities classified as held for sale and included as a part of discontinued operations: November 30, 2019 May 31, 2019 Accounts receivable, net $ — $ 1,365,114 Inventories — 3,777,913 Prepaid expenses — 49,357 Current assets held for sale $ — $ 5,192,384 Property and equipment, net — 162,987 Noncurrent assets held for sale $ — $ 162,987 Accounts payable $ — $ 393,773 Accrued commissions — 128,453 Accrued payroll liabilities — 127,124 Customer deposits and prepayments — 109,860 Other accrued liabilities — 89,914 Current liabilities held for sale $ — $ 849,124 Net assets held for sale $ — $ 4,506,247
Gain Recognized [Member]
Summary Of Consideration And Gain Of Discontinued Operation	The following table summarizes the consideration and gain recognized in the quarter ended November 30, 2019 associated with the sale of the SBS Business: Purchase Price $ 10,500,000 Cash in SEL 69,157 Less: Net assets sold 4,460,177 Minimum cash 140,000 Transaction fees 453,287 Release of cumulative translation adjustment from OCI 455,848 Plus or minus: Closing adjustments — Pre-tax $ 5,059,845 Income taxes 82,938 Gain on sale, net of income taxes $ 4,976,907

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($)	Nov. 30, 2019	May 31, 2019	Nov. 30, 2018	May 31, 2018
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 12,105,462	$ 1,467,435
Restricted cash	420,000	0
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows	$ 12,525,462	$ 1,467,435	$ 1,356,469	$ 2,111,533

Summary Of Significant Accoun_5

Summary Of Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Significant Accounting Policies [Line Items]
Allowance for doubtful accounts	$ 81,158	$ 36,826
Amortizable intangible assets	2,200,883		$ 2,200,883
Accumulated amortization of intangible assets	1,860,989		$ 1,808,698
Depreciation expense	30,986	36,683
Amortization expense	52,291	52,291
Shipping and Handling [Member]
Significant Accounting Policies [Line Items]
Revenues	$ 6,534	$ 7,896
Vehicles [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	3 years
Building and Improvements [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	25 years
Minimum [Member] | Furniture, Fixtures and Equipment [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	3 years
Maximum [Member] | Furniture, Fixtures and Equipment [Member]
Significant Accounting Policies [Line Items]
Property and equipment, useful life	7 years

Summary Of Significant Accoun_6

Summary Of Significant Accounting Policies - Schedule of Inventories (Detail) - USD ($)	Nov. 30, 2019	May 31, 2019
Inventory, Net [Abstract]
Raw materials	$ 316,565	$ 347,095
Work-in-process	397,370	376,375
Finished goods	363,683	517,662
Inventories	$ 1,077,618	$ 1,241,132

Summary Of Significant Accoun_7

Summary Of Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($)	Nov. 30, 2019	May 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,542,459	$ 2,534,980
Less accumulated depreciation	(1,885,105)	(1,858,593)
Property, plant and equipment, net	657,354	676,387
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	1,826,503	1,814,524
Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 416,956	$ 421,456

Stock Options And Stock-Based_3

Stock Options And Stock-Based Compensation - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2019	May 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate	0.00%
Vested and exercisable stock options	236,666	254,166
Weighted average exercise price	$ 2.35	$ 2.41
Additional stock-based compensation expense	$ 0
Number of Shares, Options granted	0
Restricted stock awards, issued during the period	23,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense recognized	$ 932
Vested and exercisable stock options	35,754
Service-based restricted stock units, granted in period	41,976
Restricted Stock Units (RSUs) [Member] | Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense recognized	$ 192,602
Performance Based Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Payment Award Vesting Rights	15 days

Stock Options And Stock-Based_4

Stock Options And Stock-Based Compensation - Schedule of Outstanding Stock Options (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Nov. 30, 2019	May 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	236,666	254,166
Weighted Average Exercise Price, Outstanding Options	$ 2.35	$ 2.41
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	4 years 3 months 18 days	5 years 9 months 18 days
Exercisable Options, Number of Shares	236,666	254,166
Exercisable Options, Weighted Average Exercise Price	$ 2.35	$ 2.41
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	6 years 2 months 12 days
Exercisable Options, Number of Shares	124,166
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	2 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	37,500
Weighted Average Exercise Price, Outstanding Options	$ 2.82
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	3 years
Exercisable Options, Number of Shares	37,500
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	25,000
Weighted Average Exercise Price, Outstanding Options	$ 2.90
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	3 years 4 months 24 days
Exercisable Options, Number of Shares	25,000
Exercisable Options, Weighted Average Exercise Price	$ 2.90
Options 5 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding Options	35,000
Weighted Average Exercise Price, Outstanding Options	$ 3.65
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	6 months
Exercisable Options, Number of Shares	35,000
Exercisable Options, Weighted Average Exercise Price	$ 3.65

Stock Options And Stock-Based_5

Stock Options And Stock-Based Compensation - Schedule of Options Granted, Exercised, Canceled and Expired (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Nov. 30, 2019	May 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Options outstanding - beginning of period	254,166
Number of Shares, Options granted	0
Number of Shares, Options exercised	0
Number of Shares, Options forfeited/cancelled	(17,500)
Number of Shares, Options outstanding - end of period	236,666	254,166
Exercisable Options, Number of Shares	236,666	254,166
Weighted Average Exercise Price, Options outstanding - beginning of period	$ 2.41
Weighted Average Exercise Price, Options granted	0
Weighted Average Exercise Price, Options exercised	0
Weighted Average Exercise Price, Options forfeited/cancelled	3.29
Weighted Average Exercise Price, Options outstanding - end of period	2.35	$ 2.41
Exercisable Options, Weighted Average Exercise Price	$ 2.35	$ 2.41
Weighted Average Remaining Contractual Life (yrs), Outstanding Options	4 years 3 months 18 days	5 years 9 months 18 days
Weighted Average Remaining Contractual Term, Exercisable Options	4 years 3 months 18 days	5 years 9 months 18 days
Intrinsic value of outstanding options	$ 556,165
Intrinsic value of exercisable options	$ 556,165

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Fair Value of the Restricted Stock units (Detail)	6 Months Ended	12 Months Ended
	Nov. 30, 2019	May 31, 2019
Expected dividend yield	0.00%
Lattce Model [Member] | Restricted Stock Units (RSUs) [Member]
Expected stock price volatility, Minimum.		50.10%
Expected stock price volatility, Maximum.		57.50%
Expected dividend yield		0.00%
Average risk-free interest rate, Minimum.		2.55%
Average risk-free interest rate, Maximum.		2.98%

Stock Options And Stock-Based_6

Stock Options And Stock-Based Compensation - Schedule Of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Nov. 30, 2019USD ($)Customer$ / sharesshares
Number of Shares, Non-vested	98,000
Number of Shares, granted	41,976
Number of Shares, vested	(71,754)
Number of Shares, Non-vested	68,222
Weighted Average Exercise Price, Non-vested | $ / shares	$ 2.94
Weighted Average Exercise Price, granted | $ / shares	$ 2.42
Weighted Average Exercise Price, vested | Customer	(2.65)
Weighted Average Exercise Price, Non-vested | $ / shares	$ 2.93
Aggregate Intrinsic Value, Non-vested | $	$ 199,890

Weighted Average Shares and R_3

Weighted Average Shares and Reconciliation - Reconciliation of Numerators and Denominators of Basic and Diluted Per Share Computations for Income (Loss) from Continuing Operations (Detail) - shares	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Weighted average shares (basic)	4,083,538	3,994,545	4,030,709	3,994,545
Effect of dilutive stock options	0	0	0	0
Weighted average shares (diluted)	4,083,538	3,994,545	4,030,709	3,994,545

Weighted Average Shares and R_4

Weighted Average Shares and Reconciliation - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Nov. 30, 2019$ / sharesshares	Nov. 30, 2019$ / sharesshares
Dilutive securities | shares	236,666	236,666
Maximum [Member]
Share price	$ 3.65	$ 3.65
Minimum [Member]
Share price	$ 1.70	$ 1.70

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Nov. 30, 2019	May 31, 2020	May 31, 2019
Income Tax Contingency [Line Items]
Liability for payment of interest and penalties	$ 0		$ 0
Other long-term liabilities related to uncertain tax positions	$ 0		$ 0
Effective tax rate for Fiscal 2019	1.50%
Forecast [Member]
Income Tax Contingency [Line Items]
Effective tax rate for Fiscal 2019		1.60%
Domestic Tax Authority [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2016
Foreign Tax Authority [Member] | United Kingdom [Member]
Income Tax Contingency [Line Items]
Income tax examination period under examination	2018

Leases - Additional Information

Leases - Additional Information (Detail)	Nov. 30, 2019
Operating lease term	10 years

Leases - Schedule Of Minimum Fu

Leases - Schedule Of Minimum Future Lease Payments Receivable On An Undiscounted Cash Flow Basis (Detail)	May 31, 2019USD ($)
2020	$ 139,692
2021	283,578
2022	291,906
2023	300,666
2024	309,870
Thereafter	1,876,764
Total undiscounted cash flow	$ 3,202,476

Customer Concentration - Additi

Customer Concentration - Additional Information (Detail) - Sales Revenue, Net [Member]	3 Months Ended	6 Months Ended
	Nov. 30, 2019	Nov. 30, 2019
Customer One [Member]
Concentration Risk, Percentage	14.60%	14.80%
Customer Two [Member]
Concentration Risk, Percentage	10.10%	10.30%
Customer Three [Member]
Concentration Risk, Percentage	4.60%	4.40%

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - USD ($)	Oct. 10, 2019	Nov. 30, 2019
Discontinued Operations purchase price		$ 10,500,000
Schmitt Dynamic Balance Systems [Member] | Discontinued Operations, Held-for-sale [Member] | Purchase Agreement [Member]
Discontinued Operations purchase price	$ 10,500,000
Discontinued Operations unrestricted cash	9,940,000
Discontinued Operations Deposits in escrow account	420,000
Discontinued Operations working capital	140,000
Disposal group Excluding Discontinued Operation Working Capital	4,200,000
Schmitt Dynamic Balance Systems [Member] | Discontinued Operations, Held-for-sale [Member] | Transition Service Agreement [Member]
Discontinued Operations cash collected	$ 196,000

Discontinued Operations - Summa

Discontinued Operations - Summary of consideration and gain of discontinued operation (Detail)	6 Months Ended
	Nov. 30, 2019USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Purchase Price	$ 10,500,000
Cash in SEL	69,157
Net assets sold	4,460,177
Minimum cash	140,000
Transaction fees	453,287
Release of cumulative translation adjustment from OCI	455,848
Closing adjustments	0
Pre-tax gain on sale	5,059,845
Income taxes	82,938
Gain on sale, net of income taxes	$ 4,976,907

Discontinued Operations - Sum_2

Discontinued Operations - Summary of assets and liabilities classified as held for sale of discontinued operations (Detail) - USD ($)	Nov. 30, 2019	May 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Accounts receivable, net	$ 0	$ 1,365,114
Inventories	0	3,777,913
Prepaid expenses	0	49,357
Current assets held for sale	0	5,192,384
Property and equipment, net	0	162,987
Noncurrent assets held for sale	0	162,987
Accounts payable	0	393,773
Accrued commissions	0	128,453
Accrued payroll liabilities	0	127,124
Customer deposits and prepayments	0	109,860
Other accrued liabilities	0	89,914
Current liabilities held for sale	0	849,124
Net assets held for sale	$ 0	$ 4,506,247

Discontinued Operations - Sum_3

Discontinued Operations - Summary of constituting income from discontinued operations (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Net revenue	$ 2,095,901	$ 2,345,477	$ 4,343,008	$ 4,539,809
Cost of revenue	1,210,126	1,464,499	2,374,251	2,797,717
Gross profit	885,775	880,978	1,968,757	1,742,092
Operating expenses:
General, administration and sales	665,365	738,821	1,252,222	1,388,201
Research and development	26,839	23,093	35,920	48,754
Total operating expenses	692,204	761,914	1,288,142	1,436,955
Operating income	193,571	119,064	680,615	305,137
Other expense, net	(65,192)	(30,604)	(140,923)	(129,029)
Income before income taxes	128,379	88,460	532,103	176,108
Provision for income taxes	(11,719)	4,248	7,589	8,500
Net income from discontinued operations, before gain on sale, net of tax	$ 140,098	$ 84,212	$ 532,103	$ 167,608

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions	Dec. 17, 2019	Dec. 03, 2019
Subsequent Event [Line Items]
Share repurchase authorized amount		$ 2
Walter Brown Pistor [Member]
Subsequent Event [Line Items]
Number of shares repurchased	365,490
Shares repurchased price per share	$ 3.25