Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
May. 31, 2015 | Aug. 12, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Taylor Devices Inc | |
Entity Central Index Key | 96,536 | |
Document Type | 10-K | |
Document Period End Date | May 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 43,100,000 | |
Entity Common Stock, Shares Outstanding | 3,367,816 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets
Balance Sheets - USD ($) | May. 31, 2015 | May. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 4,895,898 | $ 2,793,642 |
Accounts receivable, net (Note 2) | 4,754,757 | 2,894,344 |
Inventory (Note 3) | 8,662,056 | 8,978,302 |
Prepaid expenses | 375,129 | $ 423,232 |
Prepaid income taxes | 14,977 | |
Costs and estimated earnings in excess of billings (Note 4) | 5,169,956 | $ 2,373,791 |
Deferred income taxes (Note 10) | 858,900 | 1,098,600 |
Total current assets | 24,731,673 | 18,561,911 |
Maintenance and other inventory, net (Note 5) | 889,929 | 836,569 |
Property and equipment, net (Note 6) | 7,873,511 | 7,867,728 |
Cash value of life insurance, net | 169,995 | 164,568 |
Total assets | 33,665,108 | 27,430,776 |
Current liabilities: | ||
Accounts payable | 2,703,065 | 1,166,162 |
Accrued commissions | 763,463 | 429,839 |
Other accrued expenses | 1,395,341 | 1,258,765 |
Billings in excess of costs and estimated earnings (Note 4) | $ 2,723,472 | 850,531 |
Accrued income taxes | 85,023 | |
Total current liabilities | $ 7,585,341 | 3,790,320 |
Deferred income taxes (Note 10) | 628,785 | 558,485 |
Stockholders' Equity: | ||
Common stock, $.025 par value, authorized 8,000,000 shares, issued 3,901,397 and 3,872,959 shares | 97,535 | 96,824 |
Paid-in capital | 7,975,397 | 7,682,170 |
Retained earnings | 19,976,908 | 17,801,960 |
Treasury stock - 537,733 and 530,143 shares at cost | (2,598,858) | (2,498,983) |
Total stockholders' equity | 25,450,982 | 23,081,971 |
Total Liabilities and stockholders' equity | $ 33,665,108 | $ 27,430,776 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | May. 31, 2015 | May. 31, 2014 |
Common Stock | ||
Par value | $ 0.25 | $ 0.25 |
Authorized shares | 8,000,000 | 8,000,000 |
Issued shares | 3,901,397 | 3,872,959 |
Treasury Stock | ||
Par value | $ 0.25 | $ 0.25 |
Treasury shares | 537,733 | 530,143 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Income Statement [Abstract] | ||
Sales, net (Note 9) | $ 30,589,266 | $ 20,011,228 |
Cost of goods sold | 21,844,715 | 14,545,882 |
Gross profit | 8,744,551 | 5,465,346 |
Selling, general and administrative expenses | 5,683,108 | 3,919,594 |
Operating income | 3,061,443 | 1,545,752 |
Other income: | ||
Interest, net | 3,988 | 860 |
Miscellaneous | 8,517 | 21,600 |
Total other income | 12,505 | 22,460 |
Income before provision for income taxes | 3,073,948 | 1,568,212 |
Provision for income taxes (Note 10) | 899,000 | 437,000 |
Net income | $ 2,174,948 | $ 1,131,212 |
Basic earnings per common share (Note 11) | $ 0.65 | $ 0.34 |
Diluted earnings per common share (Note 11) | $ 0.64 | $ 0.34 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Operating activities: | ||
Net income | $ 2,174,948 | $ 1,131,212 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation | 740,844 | 699,039 |
Stock options issued for services | $ 116,069 | 112,171 |
Bad debt expense (recovery) | (32,024) | |
Provision for inventory obsolescence | $ 180,000 | 180,000 |
Deferred income taxes | 310,000 | 124,300 |
Changes in other current assets and liabilities: | ||
Accounts receivable | (1,860,413) | (617,745) |
Inventory | 82,886 | 33,614 |
Prepaid expenses | 48,103 | (123,456) |
Prepaid income taxes | (14,977) | 157,137 |
Costs and estimated earnings in excess of billings | (2,796,165) | 84,031 |
Accounts payable | 1,536,903 | (43,435) |
Accrued commissions | 333,624 | (6,893) |
Other accrued expenses | 136,576 | (477,592) |
Billings in excess of costs and estimated earnings | 1,872,941 | 678,650 |
Accrued income taxes | (85,023) | 85,023 |
Net operating activities | 2,776,316 | 1,984,032 |
Investing activities: | ||
Acquisition of property and equipment | (746,627) | (1,355,605) |
Increase in cash value of life insurance | (5,427) | (5,490) |
Net investing activities | (752,054) | (1,361,095) |
Financing activities: | ||
Proceeds from issuance of common stock | 77,994 | 172,831 |
Net financing activities | 77,994 | 172,831 |
Net change in cash and cash equivalents | 2,102,256 | 795,768 |
Cash and cash equivalents - beginning | 2,793,642 | 1,997,874 |
Cash and cash equivalents - ending | $ 4,895,898 | $ 2,793,642 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Treasury Stock |
Balance, beginning at May. 31, 2013 | $ 96,029 | $ 7,397,963 | $ 16,670,748 | $ (2,498,983) |
Net income | $ 1,131,212 | |||
Common stock issued for employee stock option plan (Note 14) | $ 750 | $ 156,900 | ||
Common stock issued for employee stock purchase plan (Note 13) | $ 45 | 15,136 | ||
Stock options issued for services | 112,171 | |||
Balance, ending at May. 31, 2014 | $ 96,824 | $ 7,682,170 | $ 17,801,960 | $ (2,498,983) |
Net income | $ 2,174,948 | |||
Common stock issued for employee stock option plan (Note 14) | $ 669 | $ 159,939 | $ (99,875) | |
Common stock issued for employee stock purchase plan (Note 13) | $ 42 | 17,219 | ||
Stock options issued for services | 116,069 | |||
Balance, ending at May. 31, 2015 | $ 97,535 | $ 7,975,397 | $ 19,976,908 | $ (2,598,858) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies: Nature of Operations: Taylor Devices, Inc. (the Company) manufactures and sells a single group of very similar products that have many different applications for customers. These similar products are included in one of six categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, and Vibration Dampers for use in various types of machinery, equipment and structures, primarily to customers which are located throughout the United States and several foreign countries. The products are manufactured at the Company's sole operating facility in the United States where all of the Company's long-lived assets reside. Management does not track or otherwise account for sales broken down by these categories. 65% of the Company's 2015 revenue was generated from sales to customers in the United States and 31% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe and South America. 62% of the Company's 2014 revenue was generated from sales to customers in the United States and 33% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe, and South America. Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Tayco Realty Corporation (Realty). All inter-company transactions and balances have been eliminated in consolidation. Subsequent Events: The Company has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Use of Estimates: The preparation of 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 financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents: The Company includes all highly liquid investments in money market funds in cash and cash equivalents on the accompanying balance sheets. Cash and cash equivalents in financial institutions may exceed insured limits at various times during the year and subject the Company to concentrations of credit risk. Accounts Receivable: Accounts receivable are stated at an amount management expects to collect from outstanding balances. Management provides for probable uncollectible accounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Inventory: Inventory is stated at the lower of average cost or market. Average cost approximates first-in, first-out cost. Property and Equipment: Property and equipment is stated at cost net of accumulated depreciation. Deprecation is provided primarily using the straight-line method for financial reporting purposes, and accelerated methods for income tax reporting purposes. Maintenance and repairs are charged to operations as incurred; significant improvements are capitalized. Cash Value of Life Insurance: Cash value of life insurance is stated at the surrender value of the contracts. Revenue Recognition: Sales are recognized when units are delivered or services are performed. Sales under fixed-price contracts are recorded as deliveries are made at the contract sales price of the units delivered. Sales under certain fixed-price contracts requiring substantial performance over several periods prior to commencement of deliveries, are accounted for under the percentage-of-completion method of accounting whereby revenues are recognized based on estimates of completion prepared on a ratio of cost to total estimated cost basis. Costs include all material and direct and indirect charges related to specific contracts. Other expenses are charged to operations as incurred. Total estimated costs for each of the contracts are estimated based on a combination of historical costs of manufacturing similar products and estimates or quotes from vendors for supplying parts or services towards the completion of the manufacturing process. Adjustments to cost estimates are made periodically, and losses expected to be incurred on contracts in progress are charged to operations in the period such losses are determined. If total costs calculated upon completion of the manufacturing process in the current period for a contract are more than the estimated total costs at completion used to calculate revenue in a prior period, then the revenue and profits in the current period will be lower than if the estimated costs used in the prior period calculation were equal to the actual total costs upon completion. In the fiscal year ended May 31, 2015, 70% of total revenue recognized was accounted for using the percentage-of-completion method of accounting while the remaining 30% of revenue was recorded as deliveries were made to our customers. In the fiscal year ended May 31, 2014, 47% of total revenue recognized was accounted for using the percentage-of-completion method of accounting while the remaining 53% of revenue was recorded as deliveries were made to our customers. For financial statement presentation purposes, the Company nets progress billings against the total costs incurred on uncompleted contracts. The asset, "costs and estimated earnings in excess of billings," represents revenues recognized in excess of amounts billed. The liability, "billings in excess of costs and estimated earnings," represents billings in excess of revenues recognized. Shipping and Handling Costs: Shipping and handling costs are classified as a component of selling, general and administrative expenses. The amount of these costs were $247,077 and $108,446 for the years ended May 31, 2015 and 2014. Income Taxes: The provision for income taxes provides for the tax effects of transactions reported in the financial statements regardless of when such taxes are payable. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax and financial statement basis of assets and liabilities. Deferred taxes are based on tax laws currently enacted with tax rates expected to be in effect when the taxes are actually paid or recovered. The Company's practice is to recognize interest related to income tax matters in interest income / expense and to recognize penalties in selling, general and administrative expenses. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at May 31, 2015 or 2014. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2015 and 2014. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2012. Sales Taxes: Certain jurisdictions impose a sales tax on Company sales to nonexempt customers. The Company collects these taxes from customers and remits the entire amount as required by the applicable law. The Company excludes from revenues and expenses the tax collected and remitted. Stock-Based Compensation: The Company measures compensation cost arising from the grant of share-based payments to employees at fair value and recognizes such cost in income over the period during which the employee is required to provide service in exchange for the award. The stock-based compensation expense for the years ended May 31, 2015 and 2014 was $116,069 and $112,171. New Accounting Standards: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers Other recently issued Accounting Standards Codification (ASC) guidance has either been implemented or are not significant to the Company. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
May. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | 2. Accounts Receivable: May 31, 2015 May 31, 2014 Customers 4,534,143 2,348,113 Customers - retention 230,370 556,231 Gross accounts receivable 4,764,513 2,904,344 Less allowance for doubtful accounts 9,756 10,000 Net accounts receivable 4,754,757 2,894,344 |
Inventory, net
Inventory, net | 12 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory, net | 3. Inventory: May 31, 2015 May 31, 2014 Raw materials 519,598 571,491 Work-in-process 7,657,720 8,149,015 Finished goods 584,738 357,796 Gross inventory 8,762,056 9,078,302 Less allowance for obsolescence 100,000 100,000 Net inventory 8,662,056 8,978,302 |
Costs and estimated earnings on
Costs and estimated earnings on uncompleted contracts | 12 Months Ended |
May. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Costs and estimated earnings on uncompleted contracts | 4. Costs and Estimated Earnings on Uncompleted Contracts: May 31, 2015 May 31, 2014 Costs incurred on uncompleted contracts 10,439,879 4,126,406 Estimated earnings 4,584,090 1,242,594 Total costs and estimated earnings 15,023,969 5,369,000 Less billings to date 12,577,485 3,845,740 Costs and estimated earnings not billed 2,446,484 1,523,260 Amounts are included in the accompanying balance sheets under the following captions: May 31, 2015 May 31, 2014 Costs and estimated earnings in excess of billings 5,169,956 2,373,791 Billings in excess of costs and estimated earnings 2,723,472 850,531 Costs and estimated earnings not billed 2,446,484 1,523,260 |
Maintenance and other inventory
Maintenance and other inventory | 12 Months Ended |
May. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Maintenance and other inventory | 5. Maintenance and Other Inventory: May 31, 2015 May 31, 2014 Maintenance and other inventory 2,102,494 2,128,710 Less allowance for obsolescence 1,212,565 1,292,141 Maintenance and other inventory, net 889,929 836,569 Maintenance and other inventory represent stock that is estimated to have a product life-cycle in excess of twelve-months. This stock represents certain items the Company is required to maintain for service of products sold, and items that are generally subject to spontaneous ordering. This inventory is particularly sensitive to technical obsolescence in the near term due to its use in industries characterized by the continuous introduction of new product lines, rapid technological advances and product obsolescence. Therefore, management of the Company has recorded an allowance for potential inventory obsolescence. The provision for potential inventory obsolescence was $180,000 for each of the years ended May 31, 2015 and 2014. |
Property and equipment
Property and equipment | 12 Months Ended |
May. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | 6. Property and Equipment: May 31, 2015 May 31, 2014 Land 195,220 195,220 Buildings and improvements 7,908,653 7,752,647 Machinery and equipment 7,566,026 7,089,831 Office furniture and equipment 1,328,806 1,222,222 Autos and trucks 73,331 73,331 Land improvements 379,432 371,590 Gross property and equipment 17,451,468 16,704,841 Less accumulated depreciation 9,577,957 8,837,113 Property and equipment, net 7,873,511 7,867,728 Depreciation expense was $740,844 and $699,039 for the years ended May 31, 2015 and 2014. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
May. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | 7. Short-Term Borrowings: The Company has a credit facility with a $6,000,000 demand line of credit from a bank, with interest payable at the Company's option of 30, 60, 90 or 180 day LIBOR rate plus 2.5% or the bank's prime rate less .25%. The line is secured by accounts receivable, equipment, inventory, general intangibles, and a negative pledge of the Company's real property. This line of credit is subject to the usual terms and conditions applied by the bank and subject to renewal annually. There is no amount outstanding under the line of credit at May 31, 2015 or May 31, 2014. The Company uses a cash management facility under which the bank draws against the available line of credit to cover checks presented for payment on a daily basis. Outstanding checks under this arrangement totaled $618,974 and $264,146 as of May 31, 2015 and 2014. These amounts are included in accounts payable. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
May. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 8. Legal Proceedings: There are no legal proceedings except for routine litigation incidental to the business. |
Sales
Sales | 12 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Sales | 9. Sales: The Company manufactures and sells a single group of very similar products that have many different applications for customers. These similar products are included in one of six categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, and Vibration Dampers. Management does not track or otherwise account for sales broken down by these categories. Sales of the Company's products are made to three general groups of customers: industrial, construction and aerospace / defense. A breakdown of sales to these three general groups of customers is as follows: 2015 2014 Construction 16,658,555 9,110,853 Aerospace / Defense 12,009,356 8,879,443 Industrial 1,921,355 2,020,932 Sales, net 30,589,266 20,011,228 Sales to seven customers approximated 62% (14%, 12%, 11%, 9%, 6% and two at 5%, respectively) of net sales for 2015. Sales to five customers approximated 50% (20%, 10%, 9%, 6% and 5%, respectively) of net sales for 2014. |
Income taxes
Income taxes | 12 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10. Income Taxes: 2015 2014 Current tax provision: Federal 589,000 311,000 State - 1,700 Total current tax provision 589,000 312,700 Deferred tax provision (benefit): Federal 308,600 122,900 State 1,400 1,400 Total deferred tax provision 310,000 124,300 Total tax provision 899,000 437,000 A reconciliation of provision for income taxes at the statutory rate to income tax provision at the Company's effective rate is as follows: 2015 2014 Computed tax provision at the expected statutory rate 1,045,200 533,200 State income tax - net of Federal tax benefit 200 1,000 Tax effect of permanent differences: Research tax credits (101,000 ) (99,000 ) Other permanent differences (44,700 ) (17,200 ) Other (700 ) 19,000 Total tax provision 899,000 437,000 Effective income tax rate 29.2% 27.9% Significant components of the Company's deferred tax assets and liabilities consist of the following: May 31, 2015 May 31, 2014 Deferred tax assets: Allowance for doubtful receivables 3,300 3,400 Tax inventory adjustment 77,700 254,600 Allowance for obsolete inventory 447,700 474,800 Accrued vacation 63,900 59,800 Accrued commissions 9,300 8,900 Warranty reserve 12,400 89,900 Stock options issued for services 244,600 207,200 Total deferred tax assets 858,900 1,098,600 Deferred tax liabilities: Excess tax depreciation (628,785 ) (558,485 ) Net deferred tax assets 230,115 540,115 Realization of the deferred tax assets is dependent on generating sufficient taxable income at the time temporary differences become deductible. The Company provides a valuation allowance to the extent that deferred tax assets may not be realized. A valuation allowance has not been recorded against the deferred tax assets since management believes it is more likely than not that the deferred tax assets are recoverable. The Company considers future taxable income and potential tax planning strategies in assessing the need for a potential valuation allowance. The amount of the deferred tax assets considered realizable however, could be reduced in the near term if estimates of future taxable income are reduced. The Company will need to generate approximately $2.5 million in taxable income in future years in order to realize the deferred tax assets recorded as of May 31, 2015 of $858,900. The Company and its subsidiary file consolidated Federal and State income tax returns. As of May 31, 2015, the Company had State investment tax credit carryforwards of approximately $261,000 expiring through May 2021. |
Earnings per common share
Earnings per common share | 12 Months Ended |
May. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per common share | 11. Earnings Per Common Share: Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average common shares outstanding for the period. Diluted earnings per common share reflects the weighted-average common shares outstanding and dilutive potential common shares, such as stock options. A reconciliation of weighted-average common shares outstanding to weighted-average common shares outstanding assuming dilution is as follows: 2015 2014 Average common shares outstanding 3,350,033 3,341,975 Common shares issuable under stock option plans 52,176 30,830 Average common shares outstanding assuming dilution 3,402,209 3,372,805 |
Related party transactions
Related party transactions | 12 Months Ended |
May. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | 12. Related Party Transactions: The Company had no related party transactions for the years ended May 31, 2015 and 2014. |
Employee stock purchase plan
Employee stock purchase plan | 12 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee stock purchase plan | 13. Employee Stock Purchase Plan: In March 2004, the Company reserved 295,000 shares of common stock for issuance pursuant to a non-qualified employee stock purchase plan. Participation in the employee stock purchase plan is voluntary for all eligible employees of the Company. Purchase of common shares can be made by employee contributions through payroll deductions. At the end of each calendar quarter, the employee contributions will be applied to the purchase of common shares using a share value equal to the mean between the closing bid and ask prices of the stock on that date. These shares are distributed to the employees at the end of each calendar quarter or upon withdrawal from the plan. During the years ended May 31, 2015 and 2014, 1,688 ($8.925 to $12.02 price per share) and 1,781 ($8.22 to $8.935 price per share) common shares, respectively, were issued to employees. As of May 31, 2015, 227,911 shares were reserved for further issue. |
Stock option plans
Stock option plans | 12 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock option plans | 14. Stock Option Plans: In 2012, the Company adopted a stock option plan which permits the Company to grant both incentive stock options and non-qualified stock options. The incentive stock options qualify for preferential treatment under the Internal Revenue Code. Under this plan, 160,000 shares of common stock have been reserved for grant to key employees and directors of the Company and 112,750 shares have been granted as of May 31, 2015. Under the plan, the option price may not be less than the fair market value of the stock at the time the options are granted. Options vest immediately and expire ten years from the date of grant. Using the Black-Scholes option pricing model, the weighted average estimated fair value of each option granted under the plan was $2.42 during 2015 and $2.34 during 2014. The pricing model uses the assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company's stock. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options granted is derived from previous history of stock exercises from the grant date and represents the period of time that options granted are expected to be outstanding. The Company uses historical data to estimate option exercise and employee termination assumptions under the valuation model. The Company has never paid dividends on its common stock and does not anticipate doing so in the foreseeable future. 2015 2014 Risk-free interest rate 2.30% 3.25% Expected life in years 3.2 3.0 Expected volatility 28% 33% Expected dividend yield 0% 0% The following is a summary of stock option activity: Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2013 206,750 $ 6.63 $ 377,891 Options granted 48,000 $ 8.80 Less: options exercised 30,000 $ 5.26 Less: options expired 5,250 - Outstanding - May 31, 2014 219,500 $ 7.31 $ 398,954 Options granted 48,000 $10.82 Less: options exercised 26,750 $ 6.00 Outstanding - May 31, 2015 240,750 $ 8.16 $ 1,134,531 We calculated intrinsic value for those options that had an exercise price lower than the market price of our common shares as of the balance sheet dates. The aggregate intrinsic value of outstanding options as of the end of each fiscal year is calculated as the difference between the exercise price of the underlying options and the market price of our common shares for the options that were in-the-money at that date (240,750 at May 31, 2015 and 164,500 at May 31, 2014.) The Company's closing stock price was $12.87 and $8.83 as of May 31, 2015 and 2014. As of May 31, 2015, there are 47,250 options available for future grants under the 2012 stock option plan. $160,608 was received from the exercise of share options during the fiscal year ended May 31, 2015. The following table summarizes information about stock options outstanding at May 31, 2015: Outstanding and Exercisable Range of Number Weighted Average Weighted Exercise of Remaining Years Average Prices Options of Contractual Life Exercise Price $2.00-$3.00 10,000 3.9 $2.83 $5.01-$6.00 45,000 3.3 $5.56 $6.01-$7.00 28,250 3.8 $6.24 $7.01-$8.00 25,000 7.9 $7.74 $8.01-$9.00 77,500 8.5 $8.61 $11.01-$12.00 25,000 6.9 $11.29 $12.01-$13.00 30,000 9.9 $12.20 $2.00-$13.00 240,750 6.7 $8.16 The following table summarizes information about stock options outstanding at May 31, 2014: Outstanding and Exercisable Range of Number Weighted Average Weighted Exercise of Remaining Years Average Prices Options of Contractual Life Exercise Price $2.00-$3.00 15,000 3.6 $2.85 $5.01-$6.00 50,000 4.1 $5.60 $6.01-$7.00 37,750 4.8 $6.24 $7.01-$8.00 30,000 8.9 $7.74 $8.01-$9.00 61,750 8.8 $8.63 $11.01-$12.00 25,000 7.9 $11.29 $2.00-$12.00 219,500 6.6 $7.31 |
Preferred stock
Preferred stock | 12 Months Ended |
May. 31, 2015 | |
Equity [Abstract] | |
Preferred stock | 15. Preferred Stock: The Company has 2,000,000 authorized but unissued shares of preferred stock which may be issued in series. The shares of each series shall have such rights, preferences, and limitations as shall be fixed by the Board of Directors. |
Treasury stock
Treasury stock | 12 Months Ended |
May. 31, 2015 | |
Equity [Abstract] | |
Treasury stock | 16. Treasury Stock: Treasury shares increased from 530,143 at May 31, 2014 to 537,733 at May 31, 2015. |
Retirement plans
Retirement plans | 12 Months Ended |
May. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement plans | 17. Retirement Plan: The Company maintains a retirement plan for essentially all employees pursuant to Section 401(k) of the Internal Revenue Code. The Company matches a percentage of employee voluntary salary deferrals subject to limitations. The Company may also make discretionary contributions as determined annually by the Company's Board of Directors. The amount expensed under the plan was $68,612 and $64,282 for the years ended May 31, 2015 and 2014. |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Fair value of financial instruments | 18. Fair Value of Financial Instruments: The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and short-term borrowings approximate fair value because of the short maturity of these instruments. |
Cash flows information
Cash flows information | 12 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows information | 19. Cash Flows Information: 2015 2014 Interest paid none 831 Income taxes paid 689,000 70,540 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of operations | Nature of Operations: Taylor Devices, Inc. (the Company) manufactures and sells a single group of very similar products that have many different applications for customers. These similar products are included in one of six categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, and Vibration Dampers for use in various types of machinery, equipment and structures, primarily to customers which are located throughout the United States and several foreign countries. The products are manufactured at the Company's sole operating facility in the United States where all of the Company's long-lived assets reside. Management does not track or otherwise account for sales broken down by these categories. 65% of the Company's 2015 revenue was generated from sales to customers in the United States and 31% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe and South America. 62% of the Company's 2014 revenue was generated from sales to customers in the United States and 33% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe, and South America. |
Principles of Consolidation: | Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Tayco Realty Corporation (Realty). All inter-company transactions and balances have been eliminated in consolidation. |
Subsequent Events: | Subsequent Events: The Company has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. |
Use of Estimates: | Use of Estimates: The preparation of 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 financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents: | Cash and Cash Equivalents: The Company includes all highly liquid investments in money market funds in cash and cash equivalents on the accompanying balance sheets. Cash and cash equivalents in financial institutions may exceed insured limits at various times during the year and subject the Company to concentrations of credit risk. |
Accounts Receivable: | Accounts Receivable: Accounts receivable are stated at an amount management expects to collect from outstanding balances. Management provides for probable uncollectible accounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. |
Inventory: | Inventory: Inventory is stated at the lower of average cost or market. Average cost approximates first-in, first-out cost. |
Property and Equipment: | Property and Equipment: Property and equipment is stated at cost net of accumulated depreciation. Deprecation is provided primarily using the straight-line method for financial reporting purposes, and accelerated methods for income tax reporting purposes. Maintenance and repairs are charged to operations as incurred; significant improvements are capitalized. |
Cash Value of Life Insurance: | Cash Value of Life Insurance: Cash value of life insurance is stated at the surrender value of the contracts. |
Revenue Recognition: | Revenue Recognition: Sales are recognized when units are delivered or services are performed. Sales under fixed-price contracts are recorded as deliveries are made at the contract sales price of the units delivered. Sales under certain fixed-price contracts requiring substantial performance over several periods prior to commencement of deliveries, are accounted for under the percentage-of-completion method of accounting whereby revenues are recognized based on estimates of completion prepared on a ratio of cost to total estimated cost basis. Costs include all material and direct and indirect charges related to specific contracts. Other expenses are charged to operations as incurred. Total estimated costs for each of the contracts are estimated based on a combination of historical costs of manufacturing similar products and estimates or quotes from vendors for supplying parts or services towards the completion of the manufacturing process. Adjustments to cost estimates are made periodically, and losses expected to be incurred on contracts in progress are charged to operations in the period such losses are determined. If total costs calculated upon completion of the manufacturing process in the current period for a contract are more than the estimated total costs at completion used to calculate revenue in a prior period, then the revenue and profits in the current period will be lower than if the estimated costs used in the prior period calculation were equal to the actual total costs upon completion. In the fiscal year ended May 31, 2015, 70% of total revenue recognized was accounted for using the percentage-of-completion method of accounting while the remaining 30% of revenue was recorded as deliveries were made to our customers. In the fiscal year ended May 31, 2014, 47% of total revenue recognized was accounted for using the percentage-of-completion method of accounting while the remaining 53% of revenue was recorded as deliveries were made to our customers. For financial statement presentation purposes, the Company nets progress billings against the total costs incurred on uncompleted contracts. The asset, "costs and estimated earnings in excess of billings," represents revenues recognized in excess of amounts billed. The liability, "billings in excess of costs and estimated earnings," represents billings in excess of revenues recognized. |
Shipping and Handling Costs: | Shipping and Handling Costs: Shipping and handling costs are classified as a component of selling, general and administrative expenses. The amount of these costs were $247,077 and $108,446 for the years ended May 31, 2015 and 2014. |
Income Taxes: | Income Taxes: The provision for income taxes provides for the tax effects of transactions reported in the financial statements regardless of when such taxes are payable. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax and financial statement basis of assets and liabilities. Deferred taxes are based on tax laws currently enacted with tax rates expected to be in effect when the taxes are actually paid or recovered. The Company's practice is to recognize interest related to income tax matters in interest income / expense and to recognize penalties in selling, general and administrative expenses. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at May 31, 2015 or 2014. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2015 and 2014. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2012. |
Sales Taxes: | Sales Taxes: Certain jurisdictions impose a sales tax on Company sales to nonexempt customers. The Company collects these taxes from customers and remits the entire amount as required by the applicable law. The Company excludes from revenues and expenses the tax collected and remitted. |
Stock-Based Compensation: | Stock-Based Compensation: The Company measures compensation cost arising from the grant of share-based payments to employees at fair value and recognizes such cost in income over the period during which the employee is required to provide service in exchange for the award. The stock-based compensation expense for the years ended May 31, 2015 and 2014 was $116,069 and $112,171. |
New Accounting Standards: | New Accounting Standards: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers Other recently issued Accounting Standards Codification (ASC) guidance has either been implemented or are not significant to the Company. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
May. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | May 31, 2015 May 31, 2014 Customers 4,534,143 2,348,113 Customers - retention 230,370 556,231 Gross accounts receivable 4,764,513 2,904,344 Less allowance for doubtful accounts 9,756 10,000 Net accounts receivable 4,754,757 2,894,344 |
Inventory, net (Tables)
Inventory, net (Tables) | 12 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | May 31, 2015 May 31, 2014 Raw materials 519,598 571,491 Work-in-process 7,657,720 8,149,015 Finished goods 584,738 357,796 Gross inventory 8,762,056 9,078,302 Less allowance for obsolescence 100,000 100,000 Net inventory 8,662,056 8,978,302 |
Costs and estimated earnings 29
Costs and estimated earnings on uncompleted contracts (Tables) | 12 Months Ended |
May. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Costs and estimated earnings not billed components | May 31, 2015 May 31, 2014 Costs incurred on uncompleted contracts 10,439,879 4,126,406 Estimated earnings 4,584,090 1,242,594 Total costs and estimated earnings 15,023,969 5,369,000 Less billings to date 12,577,485 3,845,740 Costs and estimated earnings not billed 2,446,484 1,523,260 |
Costs and estimated earnings not billed | May 31, 2015 May 31, 2014 Costs and estimated earnings in excess of billings 5,169,956 2,373,791 Billings in excess of costs and estimated earnings 2,723,472 850,531 Costs and estimated earnings not billed 2,446,484 1,523,260 |
Maintenance and other invento30
Maintenance and other inventory (Tables) | 12 Months Ended |
May. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Maintenance and other inventory | May 31, 2015 May 31, 2014 Maintenance and other inventory 2,102,494 2,128,710 Less allowance for obsolescence 1,212,565 1,292,141 Maintenance and other inventory, net 889,929 836,569 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
May. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | May 31, 2015 May 31, 2014 Land 195,220 195,220 Buildings and improvements 7,908,653 7,752,647 Machinery and equipment 7,566,026 7,089,831 Office furniture and equipment 1,328,806 1,222,222 Autos and trucks 73,331 73,331 Land improvements 379,432 371,590 Gross property and equipment 17,451,468 16,704,841 Less accumulated depreciation 9,577,957 8,837,113 Property and equipment, net 7,873,511 7,867,728 |
Sales (Tables)
Sales (Tables) | 12 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Sales by major customer type | 2015 2014 Construction 16,658,555 9,110,853 Aerospace / Defense 12,009,356 8,879,443 Industrial 1,921,355 2,020,932 Sales, net 30,589,266 20,011,228 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Tax provision | 2015 2014 Current tax provision: Federal 589,000 311,000 State - 1,700 Total current tax provision 589,000 312,700 Deferred tax provision (benefit): Federal 308,600 122,900 State 1,400 1,400 Total deferred tax provision 310,000 124,300 Total tax provision 899,000 437,000 |
Effective income tax rate reconciliation | 2015 2014 Computed tax provision at the expected statutory rate 1,045,200 533,200 State income tax - net of Federal tax benefit 200 1,000 Tax effect of permanent differences: Research tax credits (101,000 ) (99,000 ) Other permanent differences (44,700 ) (17,200 ) Other (700 ) 19,000 Total tax provision 899,000 437,000 Effective income tax rate 29.2% 27.9% |
Components of deferred tax assets and liabilities | May 31, 2015 May 31, 2014 Deferred tax assets: Allowance for doubtful receivables 3,300 3,400 Tax inventory adjustment 77,700 254,600 Allowance for obsolete inventory 447,700 474,800 Accrued vacation 63,900 59,800 Accrued commissions 9,300 8,900 Warranty reserve 12,400 89,900 Stock options issued for services 244,600 207,200 Total deferred tax assets 858,900 1,098,600 Deferred tax liabilities: Excess tax depreciation (628,785 ) (558,485 ) Net deferred tax assets 230,115 540,115 |
Earnings per common share (Tabl
Earnings per common share (Tables) | 12 Months Ended |
May. 31, 2015 | |
Earnings Per Share [Abstract] | |
Weighted Average Number of Common Shares Outstanding | 2015 2014 Average common shares outstanding 3,350,033 3,341,975 Common shares issuable under stock option plans 52,176 30,830 Average common shares outstanding assuming dilution 3,402,209 3,372,805 |
Stock option plans (Tables)
Stock option plans (Tables) | 12 Months Ended |
May. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock option estimated fair value components | 2015 2014 Risk-free interest rate 2.30% 3.25% Expected life in years 3.2 3.0 Expected volatility 28% 33% Expected dividend yield 0% 0% |
Stock option activity | Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2013 206,750 $ 6.63 $ 377,891 Options granted 48,000 $ 8.80 Less: options exercised 30,000 $ 5.26 Less: options expired 5,250 - Outstanding - May 31, 2014 219,500 $ 7.31 $ 398,954 Options granted 48,000 $10.82 Less: options exercised 26,750 $ 6.00 Outstanding - May 31, 2015 240,750 $ 8.16 $ 1,134,531 |
Stock optios outstanding and exercisable | Outstanding and Exercisable Range of Number Weighted Average Weighted Exercise of Remaining Years Average Prices Options of Contractual Life Exercise Price $2.00-$3.00 10,000 3.9 $2.83 $5.01-$6.00 45,000 3.3 $5.56 $6.01-$7.00 28,250 3.8 $6.24 $7.01-$8.00 25,000 7.9 $7.74 $8.01-$9.00 77,500 8.5 $8.61 $11.01-$12.00 25,000 6.9 $11.29 $12.01-$13.00 30,000 9.9 $12.20 $2.00-$13.00 240,750 6.7 $8.16 The following table summarizes information about stock options outstanding at May 31, 2014: Outstanding and Exercisable Range of Number Weighted Average Weighted Exercise of Remaining Years Average Prices Options of Contractual Life Exercise Price $2.00-$3.00 15,000 3.6 $2.85 $5.01-$6.00 50,000 4.1 $5.60 $6.01-$7.00 37,750 4.8 $6.24 $7.01-$8.00 30,000 8.9 $7.74 $8.01-$9.00 61,750 8.8 $8.63 $11.01-$12.00 25,000 7.9 $11.29 $2.00-$12.00 219,500 6.6 $7.31 |
Cash flows information (Tables)
Cash flows information (Tables) | 12 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flow supplemental disclosure | 2015 2014 Interest paid none 831 Income taxes paid 689,000 70,540 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Accounting Policies [Abstract] | ||
Domestic revenue as percentage of total | 65.00% | 62.00% |
Asian revenue as percentage of total | 31.00% | 33.00% |
Percent of total revenue for a period recognized using the percentage of completion method of accounting | 70.00% | 47.00% |
Percent of total revenue for a period recognized using the completed contract method of accounting | 30.00% | 53.00% |
Shipping and handling costs | $ 247,077 | $ 108,446 |
Share based compensation expense | $ 116,069 | $ 112,171 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Accounts receivable, net | ||
Customers | $ 4,534,143 | $ 2,348,113 |
Customers - retention | 230,370 | 556,231 |
Gross accounts receivable | 4,764,513 | 2,904,344 |
Less allowance for doubtful accounts | (9,756) | (10,000) |
Net accounts receivable | $ 4,754,757 | $ 2,894,344 |
Inventory, net - Inventory (Det
Inventory, net - Inventory (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Inventory, net | ||
Raw materials | $ 519,598 | $ 571,491 |
Work-in-process | 7,657,720 | 8,149,015 |
Finished goods | 584,738 | 357,796 |
Gross inventory | 8,762,056 | 9,078,302 |
Less allowance for obsolescence | (100,000) | (100,000) |
Net inventory | $ 8,662,056 | $ 8,978,302 |
Costs and estimated earnings 40
Costs and estimated earnings on uncompleted contracts - Costs and estimated earnings not billed components (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Costs and estimated earnings on uncompleted contracts | ||
Costs incurred on uncompleted contracts | $ 10,439,879 | $ 4,126,406 |
Estimated earnings | 4,584,090 | 1,242,594 |
Total costs and estimated earnings | 15,023,969 | 5,369,000 |
Less billings to date | (12,577,485) | (3,845,740) |
Costs and estimated earnings not billed | $ 2,446,484 | $ 1,523,260 |
Costs and estimated earnings 41
Costs and estimated earnings on uncompleted contracts - Costs and estimated earnings not billed (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Costs and estimated earnings on uncompleted contracts components | ||
Costs and estimated earnings in excess of billings | $ 5,169,956 | $ 2,373,791 |
Billings in excess of costs and estimated earnings | (2,723,472) | (850,531) |
Costs and estimated earnings not billed | $ 2,446,484 | $ 1,523,260 |
Maintenance and other invento42
Maintenance and other inventory - Maintenance and other inventory (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Maintenance and other inventory | ||
Maintenance and other inventory | $ 2,102,494 | $ 2,128,710 |
Less allowance for obsolescence | (1,212,565) | (1,292,141) |
Maintenance and other inventory, net | $ 889,929 | $ 836,569 |
Maintenance and other invento43
Maintenance and other inventory (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventory write down | $ 180,000 | $ 180,000 |
Property and equipment - Proper
Property and equipment - Property and equipment (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 195,220 | $ 195,220 |
Buildings and improvements | 7,908,653 | 7,752,647 |
Machinery and equipment | 7,566,026 | 7,089,831 |
Office furniture and equipment | 1,328,806 | 1,222,222 |
Autos and trucks | 73,331 | 73,331 |
Land improvements | 379,432 | 371,590 |
Gross property and equipment | 17,451,468 | 16,704,841 |
Less accumulated depreciation | (9,577,957) | (8,837,113) |
Property and equipment, net | $ 7,873,511 | $ 7,867,728 |
Property and equipment (Details
Property and equipment (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 740,844 | $ 699,039 |
Short-Term Borrowings (Details
Short-Term Borrowings (Details Narrative) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Debt Disclosure [Abstract] | ||
Line of credit facility | $ 6,000,000 | |
Line of credit outstanding balance | 0 | $ 0 |
Uncleared checks | $ 618,974 | $ 264,146 |
Sales - Sales by major customer
Sales - Sales by major customer type (Details) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Sales. net | $ 30,589,266 | $ 20,011,228 |
Construction | ||
Sales. net | 16,658,555 | 9,110,853 |
Aerospace / Defense | ||
Sales. net | 12,009,356 | 8,879,443 |
Industrial | ||
Sales. net | $ 1,921,355 | $ 2,020,932 |
Sales (Details Narrative)
Sales (Details Narrative) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Notes to Financial Statements | ||
Percentage of total sales to significant individual customers | 0.62 | 0.50 |
Percentage of total sales to significant individual customer1 | .14 | .2 |
Percentage of total sales to significant individual customer2 | .12 | .1 |
Percentage of total sales to significant individual customer3 | .11 | .09 |
Percentage of total sales to significant individual customer4 | .09 | 0.06 |
Percentage of total sales to significant individual customer5 | 0.06 | .05 |
Percentage of total sales to significant individual customer6 | .05 | |
Percentage of total sales to significant individual customer7 | .05 |
Income taxes - Tax provision (D
Income taxes - Tax provision (Details) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Current tax provision: | ||
Federal | $ 589,000 | $ 311,000 |
State | 1,700 | |
Total current tax provision | $ 589,000 | 312,700 |
Deferred tax provision (benefit): | ||
Federal | 308,600 | 122,900 |
State | 1,400 | 1,400 |
Total deferred tax provision | 310,000 | 124,300 |
Total tax provision | $ 899,000 | $ 437,000 |
Income taxes - Effective income
Income taxes - Effective income tax rate reconciliation (Details) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Computed tax provision at the expected statutory rate | 104520000.00% | 53320000.00% |
State income tax - net of Federal tax benefit | 20000.00% | 100000.00% |
Tax effect of permanent differences: | ||
Research tax credits | (10100000.00%) | (9900000.00%) |
Other permanent differences | (4470000.00%) | (1720000.00%) |
Other | (70000.00%) | 1900000.00% |
Total tax provision | $ 899,000 | $ 437,000 |
Effective income tax rate | 29.20% | 27.90% |
Income taxes - Components of de
Income taxes - Components of deferred tax assets and liabilities (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Deferred tax assets: | ||
Allowance for doubtful receivables | $ 3,300 | $ 3,400 |
Tax inventory adjustment | 77,700 | 254,600 |
Allowance for obsolete inventory | 447,700 | 474,800 |
Accrued vacation | 63,900 | 59,800 |
Accrued commissions | 9,300 | 8,900 |
Warranty reserve | 12,400 | 89,900 |
Stock options issued for services | 244,600 | 207,200 |
Total deferred tax assets | 858,900 | 1,098,600 |
Deferred tax liabilities: | ||
Excess tax depreciation | (628,785) | (558,485) |
Net deferred tax assets | $ 230,115 | $ 540,115 |
Income taxes (Details Narrative
Income taxes (Details Narrative) - USD ($) | 72 Months Ended | ||
May. 31, 2021 | May. 31, 2015 | May. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets | $ 858,900 | $ 1,098,600 | |
Deferred tax credit carryforward | $ 261,000 | ||
Tax credit carryforward expiration date | May 31, 2021 |
Earnings per common share - Wei
Earnings per common share - Weighted Average Number of Common Shares Outstanding (Details) - shares | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Average common shares outstanding | 3,350,033 | 3,341,975 |
Common shares issuable under stock option plans | 52,176 | 30,830 |
Average common shares outstanding assuming dilution | 3,402,209 | 3,372,805 |
Employee stock purchase plan (D
Employee stock purchase plan (Details Narrative) - shares | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Common shares issued employee stock purchase plan | 1,688 | 1,781 |
Stock option plans - Stock opti
Stock option plans - Stock option estimated fair value components (Details) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free interest rate | 2.30% | 3.25% |
Expected life in years | 3 years 2 months 14 days | 3 years |
Expected volatility | 28.00% | 33.00% |
Expected dividend yield | 0.00% | 0.00% |
Stock option plans - Stock op56
Stock option plans - Stock option activity (Details) - USD ($) | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options outstanding, Shares | 240,750 | 219,500 | 206,750 |
Options outstanding, Average Exercise Price | $ 8.16 | $ 7.31 | $ 6.63 |
Options outstanding, Intrinsic value | $ 1,131,531 | $ 398,954 | $ 377,891 |
Options granted, Shares | 48,000 | 48,000 | |
Options granted, Average Exercise Price | $ 10.82 | $ 8.80 | |
Options Exercised, Shares | 26,750 | 30,000 | |
Options Exercised, Average Exercise Price | $ 6 | $ 5.26 | |
Options Expired, Shares | 5,250 |
Stock option plans - Stock op57
Stock option plans - Stock options outstanding and exercisable (Details) - $ / shares | May. 31, 2015 | May. 31, 2014 |
Range of exercise prices, Minimum | 2 | 2 |
Range of exercise prices, Maximum | 13 | 13 |
Number of Options | 240,750 | 219,500 |
Weighted Average Remaining Years of Contractual Life | 6.7 | 6.6 |
Weighted Average Exercise Price | $ 8.16 | $ 7.31 |
Price range 1 | ||
Range of exercise prices, Minimum | 2 | 2 |
Range of exercise prices, Maximum | 3 | 3 |
Number of Options | 10,000 | 15,000 |
Weighted Average Remaining Years of Contractual Life | 3.9 | 3.6 |
Weighted Average Exercise Price | $ 2.83 | $ 2.85 |
Price range 2 | ||
Range of exercise prices, Minimum | 5.01 | 5.01 |
Range of exercise prices, Maximum | 6 | 6 |
Number of Options | 45,000 | 50,000 |
Weighted Average Remaining Years of Contractual Life | 3.3 | 4.1 |
Weighted Average Exercise Price | $ 5.56 | $ 5.60 |
Price range 3 | ||
Range of exercise prices, Minimum | 6.01 | 6.01 |
Range of exercise prices, Maximum | 7 | 7 |
Number of Options | 28,250 | 37,750 |
Weighted Average Remaining Years of Contractual Life | 3.8 | 4.8 |
Weighted Average Exercise Price | $ 6.24 | $ 6.24 |
Price range 4 | ||
Range of exercise prices, Minimum | 7.01 | 7.01 |
Range of exercise prices, Maximum | 8 | 8 |
Number of Options | 25,000 | 30,000 |
Weighted Average Remaining Years of Contractual Life | 7.9 | 8.9 |
Weighted Average Exercise Price | $ 7.74 | $ 7.74 |
Price range 5 | ||
Range of exercise prices, Minimum | 8.01 | 8.01 |
Range of exercise prices, Maximum | 9 | 9 |
Number of Options | 77,500 | 61,750 |
Weighted Average Remaining Years of Contractual Life | 8.5 | 8.8 |
Weighted Average Exercise Price | $ 8.61 | $ 8.63 |
Price range 6 | ||
Range of exercise prices, Minimum | 11.01 | 11.01 |
Range of exercise prices, Maximum | 12 | 12 |
Number of Options | 25,000 | 25,000 |
Weighted Average Remaining Years of Contractual Life | 6.9 | 7.9 |
Weighted Average Exercise Price | $ 11.29 | $ 11.29 |
Price range 7 | ||
Range of exercise prices, Minimum | 12.01 | 12.01 |
Range of exercise prices, Maximum | 13 | 13 |
Number of Options | 30,000 | 0 |
Weighted Average Remaining Years of Contractual Life | 9.9 | 0 |
Weighted Average Exercise Price | $ 12.20 |
Stock option plans (Details Nar
Stock option plans (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Common shares reserved for stock options | 160,000 | |
Common shares for options granted | 48,000 | 48,000 |
Average estimated value per option granted | $ 2.42 | $ 2.34 |
Price per share of common | $ 12.87 | $ 8.83 |
Shares available | 47,250 | |
Proceeds exercise of options | $ 160,608 |
Preferred stock (Details Narrat
Preferred stock (Details Narrative) | May. 31, 2015shares |
Equity [Abstract] | |
Preferred shares authorized | 2,000,000 |
Treasury stock (Details Narrati
Treasury stock (Details Narrative) - shares | May. 31, 2015 | May. 31, 2014 |
Equity [Abstract] | ||
Treasury shares | 537,733 | 530,143 |
Retirement plans (Details Narra
Retirement plans (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Retirement plan expense | $ 68,612 | $ 64,282 |
Cash flows information - Cash f
Cash flows information - Cash flow supplemental disclosure (Details) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 0 | $ 831 |
Income taxes paid | $ 689,000 | $ 70,540 |