Cover
Cover - USD ($) | 12 Months Ended | ||
May 31, 2019 | Aug. 02, 2019 | Nov. 30, 2018 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | May 31, 2019 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity File Number | 0-3498 | ||
Entity Registrant Name | TAYLOR DEVICES INC | ||
Entity Central Index Key | 0000096536 | ||
Entity Tax Identification Number | 16-0797789 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Address, Address Line One | 90 Taylor Drive | ||
Entity Address, City or Town | North Tonawanda | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 14120-0748 | ||
City Area Code | 716 | ||
Local Phone Number | 694-0800 | ||
Title of 12(g) Security | Common Stock ($.025 par value) | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 37,900,000 | $ 43,262,000 | |
Entity Common Stock, Shares Outstanding | 3,478,866 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 31, 2019 | May 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 5,071,822 | $ 2,858,323 |
Short-term investments | 1,055,591 | 1,039,082 |
Accounts receivable, net | 5,279,302 | 6,265,864 |
Inventory | 11,239,331 | 11,317,775 |
Prepaid expenses | 312,160 | 244,643 |
Prepaid income taxes | 237,017 | 202,519 |
Costs and estimated earnings in excess of billings | 7,572,490 | 6,356,963 |
Total current assets | 30,767,713 | 28,285,169 |
Maintenance and other inventory, net | 731,877 | 885,651 |
Property and equipment, net | 9,317,442 | 9,935,625 |
Cash value of life insurance, net | 190,749 | 185,730 |
Deferred income taxes | 189,115 | 219,115 |
Assets | 41,196,896 | 39,511,290 |
Current liabilities: | ||
Accounts payable | 1,402,692 | 1,460,175 |
Accrued commissions | 1,309,358 | 983,260 |
Other accrued expenses | 1,532,271 | 1,412,502 |
Billings in excess of costs and estimated earnings | 633,703 | 2,043,002 |
Total current liabilities | 4,878,024 | 5,898,939 |
Stockholders' Equity: | ||
Common stock, $ .025 par value, authorized 8,000,000 shares, issued 4,029,431 and 4,017,139 shares | 100,735 | 100,428 |
Paid-in capital | 9,538,892 | 9,382,202 |
Retained earnings | 29,508,604 | 26,959,080 |
Stockholders’ equity before treasury stock | 39,148,231 | 36,441,710 |
Treasury stock - 550,872 shares at cost | (2,829,359) | (2,829,359) |
Total stockholders' equity | 36,318,872 | 33,612,351 |
Total liabilities and stockholders’ equity | $ 41,196,896 | $ 39,511,290 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | May 31, 2019 | May 31, 2018 |
Authorized shares | 8,000,000 | 8,000,000 |
Issued shares | 4,029,431 | 4,017,139 |
Common Stock [Member] | ||
Par value | $ 0.025 | $ 0.025 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Income Statement [Abstract] | ||
Sales, net | $ 33,619,031 | $ 24,363,967 |
Cost of goods sold | 24,571,255 | 18,439,760 |
Gross profit | 9,047,776 | 5,924,207 |
Selling, general and administrative expenses | 6,045,984 | 5,276,574 |
Operating income | 3,001,792 | 647,633 |
Other income | ||
Interest, net | 69,006 | 26,861 |
Miscellaneous | (11,273) | 1,876 |
Total other income | 57,733 | 28,737 |
Income before provision for income taxes | 3,059,525 | 676,370 |
Provision for income taxes | 515,000 | 233,000 |
Net income | $ 2,544,525 | $ 443,370 |
Basic and diluted earnings per common share | $ 0.73 | $ 0.13 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Beginning balance, value at May. 31, 2017 | $ 99,763 | $ 9,070,278 | $ 26,515,710 | $ (2,829,359) |
Net income | 443,370 | |||
Common stock issued for employee stock option plan | 619 | 164,364 | ||
Common stock issued for employee stock purchase plan | 46 | 22,629 | ||
Stock options issued for services | 124,931 | |||
Ending balance, value at May. 31, 2018 | 100,428 | 9,382,202 | 26,959,080 | (2,829,359) |
Net income | 2,544,525 | |||
Common stock issued for employee stock option plan | 269 | 32,561 | ||
Common stock issued for employee stock purchase plan | 38 | 17,473 | ||
Stock options issued for services | 106,656 | |||
Adjustments Due to ASU 2014-09 at May. 31, 2018 | 4,999 | |||
Ending balance, value at May. 31, 2019 | $ 100,735 | $ 9,538,892 | $ 29,508,604 | $ (2,829,359) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
operating activities: | ||
Net income | $ 2,544,525 | $ 443,370 |
Adjustments to reconcile net income to net cash flows from | ||
Depreciation | 1,072,959 | 995,924 |
Stock options issued for services | 106,656 | 124,931 |
Loss on disposal of property and equipment | 18,061 | |
Provision for inventory obsolescence | 175,000 | 60,000 |
Deferred income taxes | 30,000 | 210,000 |
Changes in other current assets and liabilities: | ||
Accounts receivable | 986,562 | (3,720,091) |
Inventory | 1,158,334 | 103,963 |
Prepaid expenses | (67,517) | 18,931 |
Prepaid income taxes | (34,498) | (38,615) |
Costs and estimated earnings in excess of billings | (1,542,036) | 511,430 |
Accounts payable | (57,483) | 130,854 |
Accrued commissions | 326,098 | 136,319 |
Other accrued expenses | (674,944) | 580,442 |
Billings in excess of costs and estimated earnings | (1,384,194) | 747,013 |
Net operating activities | 2,657,523 | 304,471 |
Investing activities: | ||
Acquisition of property and equipment | (472,837) | (936,833) |
Increase in short-term investments | (16,509) | (16,756) |
Increase in cash value of life insurance | (5,019) | (5,151) |
Net investing activities | (494,365) | (958,740) |
Financing activities: | ||
Proceeds from issuance of common stock | 50,341 | 187,658 |
Net financing activities | 50,341 | 187,658 |
Net change in cash and cash equivalents | 2,213,499 | (466,611) |
Cash and cash equivalents - beginning | 2,858,323 | 3,324,934 |
Cash and cash equivalents - ending | $ 5,071,822 | $ 2,858,323 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies: | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
1. 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 eight categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs,Vibration Dampers, Machined Springs and Custom Actuators 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. 78% 17% 74% 21% 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. Short-term Investments: At times, the Company invests excess funds in liquid interest earning instruments. Short-term investments at May 31, 2019 include “available for sale” corporate bonds stated at fair value, which approximates cost. The bonds (7) mature on various dates during the period May 2020 to December 2021. Unrealized holding gains and losses would be presented as a separate component of accumulated other comprehensive income, net of deferred income taxes. Realized gains and losses on the sale of investments are determined using the specific identification method. The bonds are valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings. 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 net realizable value. 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: As noted below, ASU 2014-09 was adopted on June 1, 2018 using the modified retrospective method, which required the recognition of the cumulative effect of the transition as an adjustment to retained earnings. Revenue is recognized (generally at fixed prices) when, or as, the Company transfers control of promised products or services to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts which are, therefore, not distinct. Promised goods or services that are immaterial in the context of the contract are not separately assessed as performance obligations. In the year ended May 31, 2019, 45% 40% For contracts with customers in which the Company satisfies a promise to the customer to provide a product that has no alternative use to the Company and the Company has enforceable rights to payment for progress completed to date inclusive of profit, the Company satisfies the performance obligation and recognizes revenue over time (generally less than one year), using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material and overhead. 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. In the year ended May 31, 2019, 55% 60% Progress payments are typically negotiated for longer term projects. Payments are otherwise due once performance obligations are complete (generally at shipment and transfer of title). 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. If applicable, the Company recognizes an asset for the incremental, material costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year and the costs are expected to be recovered. As of May 31, 2019, the Company does not have material incremental costs on any open contracts with an original expected duration of greater than one year, and therefore such costs are expensed as incurred. These incremental costs include, but are not limited to, sales commissions incurred to obtain a contract with a customer. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings primarily because certain longer term contracts accounted for on the percentage of completion method did not contain “enforceable right to payment” terms, as defined. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to our consolidated June 1, 2018 balance sheet for the adoption of ASU 2014-09, were as follows: Balance Sheet Balance at May 31, 2018 Adjustments Due to ASU 2014-09 Balance at June 1, 2018 Assets Inventory $ 11,317,775 $ 1,101,116 $ 12,418,891 Costs and estimated earnings in excess of billings $ 6,356,963 $ (326,509 ) $ 6,030,454 Liabilities Billings in excess of costs and estimated earnings $ 2,043,002 $ (25,105 ) $ 2,017,897 Other accrued expenses $ 1,412,502 $ 794,713 $ 2,207,215 Equity Retained earnings $ 26,959,080 $ 4,999 $ 26,964,079 In accordance with the new revenue standard requirements, the disclosure of the impact of adoption of ASU 2014-09 on our consolidated balance sheet and income statement was as follows: May 31, 2019 Balance Sheet As Reported Effect of Change Higher/(Lower) Balances Without Adoption of ASU 2014-09 Assets Inventory $ 11,239,331 $ — $ 11,239,331 Costs and estimated earnings in excess of billings $ 7,572,490 $ — $ 7,572,490 Liabilities Other accrued expenses $ 1,532,271 $ — $ 1,532,271 Equity Retained earnings $ 29,508,604 $ — $ 29,508,604 For the year ended May 31, 2019 Income Statement As Reported Effect of Change Higher/(Lower) Balances Without Adoption of ASU 2014-09 Revenues Sales, net $ 33,619,031 $ 1,096,117 $ 32,522,914 Costs and Expenses Cost of goods sold $ 24,571,255 $ 1,101,116 $ 23,470,139 Provision for income taxes $ 515,000 $ — $ 515,000 Net income (loss) $ 2,544,525 $ (4,999 ) $ 2,549,524 Shipping and Handling Costs: Shipping and handling costs on incoming inventory items are classified as a component of cost of goods sold, while shipping and handling costs on outgoing shipments to customers are classified as a component of selling, general and administrative expenses. The amounts of these costs classified as a component of selling, general and administrative expenses were $268,847 $264,696 Research and Development Costs: Research and development costs are classified as a component of cost of sales. The amounts of these costs were $319,000 $263,000 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, 2019 or 2018. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2019 and 2018. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2016. 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, 2019 and 2018 was $106,656 $124,931 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. ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09, as amended, is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2018 (fiscal year 2019 for the Company). Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company adopted ASU 2014-09 on June 1, 2018 using the modified retrospective method, which required the recognition of the cumulative effect of the transition as an adjustment to retained earnings. The effect of the adoption is detailed above. Other recently issued Accounting Standards Codification (ASC) guidance has either been implemented or are not significant to the Company. |
2. Accounts Receivable_
2. Accounts Receivable: | 12 Months Ended |
May 31, 2019 | |
Receivables [Abstract] | |
2. Accounts Receivable: | 2. Accounts Receivable: 2019 2018 Customers $ 4,438,373 $ 5,515,848 Customers - retention 950,684 859,771 Gross accounts receivable 5,389,057 6,375,619 Less allowance for doubtful accounts 109,755 109,755 Net accounts receivable $ 5,279,302 $ 6,265,864 |
3. Inventory_
3. Inventory: | 12 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
3. Inventory: | 3. Inventory: 2019 2018 Raw materials $ 679,018 $ 726,852 Work-in-process 9,905,495 9,990,225 Finished goods 754,818 700,698 Gross inventory 11,339,331 11,417,775 Less allowance for obsolescence 100,000 100,000 Net inventory $ 11,239,331 $ 11,317,775 |
4. Costs and Estimated Earnings
4. Costs and Estimated Earnings on Uncompleted Contracts: | 12 Months Ended |
May 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
4. Costs and Estimated Earnings on Uncompleted Contracts: | 4. Costs and Estimated Earnings on Uncompleted Contracts: 2019 2018 Costs incurred on uncompleted contracts $ 16,599,307 $ 12,512,350 Estimated earnings 6,526,707 5,157,890 Total costs and estimated earnings 23,126,014 17,670,240 Less billings to date 16,187,227 13,356,279 Costs and estimated earnings not billed $ 6,938,787 $ 4,313,961 Amounts are included in the accompanying balance sheets under the following captions: 2019 2018 Costs and estimated earnings in excess of billings $ 7,572,490 $ 6,356,963 Billings in excess of costs and estimated earnings 633,703 2,043,002 Costs and estimated earnings not billed $ 6,938,787 $ 4,313,961 The following summarizes the status of Projects in progress as of May 31, 2019 and 2018: 2019 2018 Number of Projects in progress 22 26 Aggregate percent complete 77 % 72 % Aggregate amount remaining $ 6,748,520 $ 6,816,089 Percentage of total value invoiced to customer 54 % 55 % Additionally, as of May 31, 2019, there are sales orders for four $990,971 four $8,793,737 Revenue recognized during the years ended May 31, 2019 and 2018 for amounts included in billings in excess of costs and estimated earnings as of the beginning of the year amounted to $4,187,015 $2,005,000 |
5. Maintenance and Other Invent
5. Maintenance and Other Inventory: | 12 Months Ended |
May 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
5. Maintenance and Other Inventory: | 5. Maintenance and Other Inventory: 2019 2018 Maintenance and other inventory $ 2,197,958 $ 2,287,897 Less allowance for obsolescence 1,466,081 1,402,246 Maintenance and other inventory, net $ 731,877 $ 885,651 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 $175,000 $60,000 |
6. Property and Equipment_
6. Property and Equipment: | 12 Months Ended |
May 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
6. Property and Equipment: | 6. Property and Equipment: 2019 2018 Land $ 195,220 $ 195,220 Buildings and improvements 9,342,431 9,342,431 Machinery and equipment 10,390,610 10,302,681 Office furniture and equipment 1,975,392 1,652,711 Autos and trucks 24,818 84,256 Land improvements 455,429 455,429 Gross property and equipment 22,383,900 22,032,728 Less accumulated depreciation 13,066,458 12,097,103 Property and equipment, net $ 9,317,442 $ 9,935,625 Depreciation expense was $1,072,959 $995,924 The Company has commitments to make capital expenditures of approximately $50,000 |
7. Short-Term Borrowings_
7. Short-Term Borrowings: | 12 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
7. Short-Term Borrowings: | 7. Short-Term Borrowings: The Company has available a $10,000,000 There is no 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 $292,000 $57,042 |
8. Legal Proceedings_
8. Legal Proceedings: | 12 Months Ended |
May 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
8. Legal Proceedings: | 8. Legal Proceedings: There are no legal proceedings except for routine litigation incidental to the business. |
9. Sales_
9. Sales: | 12 Months Ended |
May 31, 2019 | |
Sales | |
9. 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 eight categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs,Vibration Dampers, Machined Springs and Custom Actuators. 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: 2019 2018 Construction $ 20,168,587 $ 12,192,836 Aerospace / Defense 11,383,374 10,205,945 Industrial 2,067,070 1,965,186 Sales, net $ 33,619,031 $ 24,363,967 Sales to four customers approximated 36% 17% 8% 6% 5% 49% 14% 13% 9% 7% 6% |
10. Income Taxes_
10. Income Taxes: | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
10. Income Taxes: | 10. Income Taxes: 2019 2018 Current tax provision: Federal $ 521,000 $ 23,000 State — — Total current tax provision 521,000 23,000 Deferred tax provision: Federal (6,000 ) 210,000 State — — Total deferred tax provision (6,000 ) 210,000 Total tax provision $ 515,000 $ 233,000 A reconciliation of provision for income taxes at the statutory rate to income tax provision at the Company's effective rate is as follows: 2019 2018 Computed tax provision at the expected statutory rate $ 642,500 $ 193,500 State income tax - net of Federal tax benefit 500 (1,200 ) Tax effect of permanent differences: Research tax credits (166,000 ) (110,000 ) Tax rate change on deferred taxes — 164,000 Other permanent differences 28,700 (3,700 ) Other 9,300 (9,600 ) Total tax provision $ 515,000 $ 233,000 Effective income tax rate 16.8 % 34.4 % Significant components of the Company's deferred tax assets and liabilities consist of the following: 2019 2018 Deferred tax assets: Allowance for doubtful receivables $ 23,000 $ 23,000 Tax inventory adjustment 99,700 18,800 Allowance for obsolete inventory 328,900 315,500 Accrued vacation 50,200 40,900 Accrued commissions 19,800 14,000 Warranty reserve 30,300 27,600 Stock options issued for services 208,600 223,100 Total deferred tax assets 760,500 662,900 Deferred tax liabilities: Excess tax depreciation 571,385 443,785 Net deferred tax assets $ 189,115 $ 219,115 In December 2017, the Tax Cuts and Jobs Act (the 2017 Act) became law. It includes a broad range of tax reform proposals affecting businesses, including corporate tax rates, business deductions, and international tax provisions. Among the changes, the 2017 Act reduces the corporate rate from 34% 21% $164,000 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 $3.6 million in taxable income in future years in order to realize the deferred tax assets recorded as of May 31, 2019 of $760,500 The Company and its subsidiary file consolidated Federal and State income tax returns. As of May 31, 2019, the Company had State investment tax credit carryforwards of approximately $370,000 May 31, 2025 |
11. Earnings Per Common Share_
11. Earnings Per Common Share: | 12 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
11. 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: 2019 2018 Average common shares outstanding 3,470,595 3,458,049 Common shares issuable under stock option plans 17,043 30,876 Average common shares outstanding assuming dilution 3,487,638 3,488,925 |
12. Related Party Transactions_
12. Related Party Transactions: | 12 Months Ended |
May 31, 2019 | |
Related Party Transactions [Abstract] | |
12. Related Party Transactions: | 12. Related Party Transactions: The Company had no related party transactions for the years ended May 31, 2019 and 2018. |
13. Employee Stock Purchase Pla
13. Employee Stock Purchase Plan: | 12 Months Ended |
May 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
13. 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, 2019 and 2018, 1,542 1,835 |
14. Stock Option Plans_
14. Stock Option Plans: | 12 Months Ended |
May 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
14. Stock Option Plans: | 14. Stock Option Plans: In 2015, 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 Using the Black-Scholes option pricing model, the weighted average estimated fair value of each option granted under the plan was $3.20 $2.86 2019 2018 Risk-free interest rate 2.179 % 2.179 % Expected life in years 3.7 3.7 Expected volatility 30 % 30 % Expected dividend yield 0 % 0 % The following is a summary of stock option activity: Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2017 253,500 $ 10.93 $ 817,629 Options granted 43,750 $ 11.15 Less: options exercised 24,750 $ 6.67 Less: options expired 750 $ 19.26 Outstanding - May 31, 2018 271,750 $ 11.33 $ 304,252 Options granted 43,000 $ 11.90 Less: options exercised 10,750 $ 3.05 Less: options expired 80,000 $ 11.68 Outstanding - May 31, 2019 224,000 $ 11.71 $ 228,132 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 (77,250 at May 31, 2019 and 93,000 at May 31, 2018.) The Company's closing stock price was $11.08 $10.26 21,500 $32,830 $164,983 In 2018, 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 no shares have been granted as of May 31, 2019. 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. The following table summarizes information about stock options outstanding at May 31, 2019: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 5.01 6.00 10,000 1.9 $ 5.69 $ 6.01 7.00 10,000 0.9 $ 6.35 $ 7.01 8.00 15,000 3.9 $ 7.74 $ 8.01 9.00 27,250 4.6 $ 8.69 $ 10.01 11.00 15,000 8.9 $ 10.30 $ 11.01 12.00 53,000 8.4 $ 11.79 $ 12.01 13.00 45,000 6.9 $ 12.38 $ 13.01 14.00 15,000 7.9 $ 13.80 $ 16.01 17.00 15,000 6.9 $ 16.40 $ 19.01 20.00 18,750 7.2 $ 19.26 $ 5.00 20.00 224,000 6.5 $ 11.71 The following table summarizes information about stock options outstanding at May 31, 2018: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining years of Contractual Life Weighted Average Exercise Price $ 2.00 3.00 10,000 0.9 $ 2.83 $ 5.01 6.00 15,000 2.9 $ 5.69 $ 6.01 7.00 15,750 1.8 $ 6.34 $ 7.01 8.00 20,000 4.9 $ 7.74 $ 8.01 9.00 32,250 5.7 $ 8.74 $ 10.01 11.00 25,000 9.9 $ 10.30 $ 11.01 12.00 20,000 3.9 $ 11.29 $ 12.01 13.00 55,000 7.7 $ 12.35 $ 13.01 14.00 30,000 8.9 $ 13.80 $ 16.01 17.00 30,000 7.9 $ 16.40 $ 19.01 20.00 18,750 8.2 $ 19.26 $ 2.00 20.00 271,750 6.5 $ 11.33 |
15. Preferred Stock_
15. Preferred Stock: | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
15. Preferred Stock: | 15. Preferred Stock: The Company has 2,000,000 |
16. Treasury Stock_
16. Treasury Stock: | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
16. Treasury Stock: | 16. Treasury Stock: Treasury shares are 550,872 |
17. Retirement Plan_
17. Retirement Plan: | 12 Months Ended |
May 31, 2019 | |
Retirement Benefits [Abstract] | |
17. Retirement Plan: | 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 $71,222 $74,279 |
18. Fair Value of Financial Ins
18. Fair Value of Financial Instruments: | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
18. Fair Value of Financial Instruments: | 18. Fair Value of Financial Instruments: The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments. The fair values of short-term investments were determined as described in Note 1. |
19. Cash Flows Information_
19. Cash Flows Information: | 12 Months Ended |
May 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
19. Cash Flows Information: | 19. Cash Flows Information: 2019 2018 Interest paid none none Income taxes paid $ 550,498 $ 61,615 |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies: (Policies) | 12 Months Ended |
May 31, 2019 | |
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 eight categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs,Vibration Dampers, Machined Springs and Custom Actuators 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. 78% 17% 74% 21% |
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. |
Short-term Investments: | Short-term Investments: At times, the Company invests excess funds in liquid interest earning instruments. Short-term investments at May 31, 2019 include “available for sale” corporate bonds stated at fair value, which approximates cost. The bonds (7) mature on various dates during the period May 2020 to December 2021. Unrealized holding gains and losses would be presented as a separate component of accumulated other comprehensive income, net of deferred income taxes. Realized gains and losses on the sale of investments are determined using the specific identification method. The bonds are valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings. |
Accounts Receivable [Policy Text Block] | 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 net realizable value. 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: As noted below, ASU 2014-09 was adopted on June 1, 2018 using the modified retrospective method, which required the recognition of the cumulative effect of the transition as an adjustment to retained earnings. Revenue is recognized (generally at fixed prices) when, or as, the Company transfers control of promised products or services to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts which are, therefore, not distinct. Promised goods or services that are immaterial in the context of the contract are not separately assessed as performance obligations. In the year ended May 31, 2019, 45% 40% For contracts with customers in which the Company satisfies a promise to the customer to provide a product that has no alternative use to the Company and the Company has enforceable rights to payment for progress completed to date inclusive of profit, the Company satisfies the performance obligation and recognizes revenue over time (generally less than one year), using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material and overhead. 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. In the year ended May 31, 2019, 55% 60% Progress payments are typically negotiated for longer term projects. Payments are otherwise due once performance obligations are complete (generally at shipment and transfer of title). 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. If applicable, the Company recognizes an asset for the incremental, material costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year and the costs are expected to be recovered. As of May 31, 2019, the Company does not have material incremental costs on any open contracts with an original expected duration of greater than one year, and therefore such costs are expensed as incurred. These incremental costs include, but are not limited to, sales commissions incurred to obtain a contract with a customer. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings primarily because certain longer term contracts accounted for on the percentage of completion method did not contain “enforceable right to payment” terms, as defined. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to our consolidated June 1, 2018 balance sheet for the adoption of ASU 2014-09, were as follows: Balance Sheet Balance at May 31, 2018 Adjustments Due to ASU 2014-09 Balance at June 1, 2018 Assets Inventory $ 11,317,775 $ 1,101,116 $ 12,418,891 Costs and estimated earnings in excess of billings $ 6,356,963 $ (326,509 ) $ 6,030,454 Liabilities Billings in excess of costs and estimated earnings $ 2,043,002 $ (25,105 ) $ 2,017,897 Other accrued expenses $ 1,412,502 $ 794,713 $ 2,207,215 Equity Retained earnings $ 26,959,080 $ 4,999 $ 26,964,079 In accordance with the new revenue standard requirements, the disclosure of the impact of adoption of ASU 2014-09 on our consolidated balance sheet and income statement was as follows: May 31, 2019 Balance Sheet As Reported Effect of Change Higher/(Lower) Balances Without Adoption of ASU 2014-09 Assets Inventory $ 11,239,331 $ — $ 11,239,331 Costs and estimated earnings in excess of billings $ 7,572,490 $ — $ 7,572,490 Liabilities Other accrued expenses $ 1,532,271 $ — $ 1,532,271 Equity Retained earnings $ 29,508,604 $ — $ 29,508,604 For the year ended May 31, 2019 Income Statement As Reported Effect of Change Higher/(Lower) Balances Without Adoption of ASU 2014-09 Revenues Sales, net $ 33,619,031 $ 1,096,117 $ 32,522,914 Costs and Expenses Cost of goods sold $ 24,571,255 $ 1,101,116 $ 23,470,139 Provision for income taxes $ 515,000 $ — $ 515,000 Net income (loss) $ 2,544,525 $ (4,999 ) $ 2,549,524 Shipping and Handling Costs: Shipping and handling costs on incoming inventory items are classified as a component of cost of goods sold, while shipping and handling costs on outgoing shipments to customers are classified as a component of selling, general and administrative expenses. The amounts of these costs classified as a component of selling, general and administrative expenses were $268,847 $264,696 Research and Development Costs: Research and development costs are classified as a component of cost of sales. The amounts of these costs were $319,000 $263,000 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, 2019 or 2018. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2019 and 2018. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2016. 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, 2019 and 2018 was $106,656 $124,931 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. ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09, as amended, is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2018 (fiscal year 2019 for the Company). Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company adopted ASU 2014-09 on June 1, 2018 using the modified retrospective method, which required the recognition of the cumulative effect of the transition as an adjustment to retained earnings. The effect of the adoption is detailed above. Other recently issued Accounting Standards Codification (ASC) guidance has either been implemented or are not significant to the Company. |
Shipping and Handling Costs: | Shipping and Handling Costs: Shipping and handling costs on incoming inventory items are classified as a component of cost of goods sold, while shipping and handling costs on outgoing shipments to customers are classified as a component of selling, general and administrative expenses. The amounts of these costs classified as a component of selling, general and administrative expenses were $268,847 $264,696 |
Research and Development Costs: | Research and Development Costs: Research and development costs are classified as a component of cost of sales. The amounts of these costs were $319,000 $263,000 |
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, 2019 or 2018. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2019 and 2018. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2016. |
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, 2019 and 2018 was $106,656 $124,931 |
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. ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09, as amended, is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2018 (fiscal year 2019 for the Company). Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company adopted ASU 2014-09 on June 1, 2018 using the modified retrospective method, which required the recognition of the cumulative effect of the transition as an adjustment to retained earnings. The effect of the adoption is detailed above. Other recently issued Accounting Standards Codification (ASC) guidance has either been implemented or are not significant to the Company. |
1. Summary of Significant Acc_3
1. Summary of Significant Accounting Policies: (Tables) | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Impact of Adoption of Standards Related to Revenue Recognition | Balance Sheet Balance at May 31, 2018 Adjustments Due to ASU 2014-09 Balance at June 1, 2018 Assets Inventory $ 11,317,775 $ 1,101,116 $ 12,418,891 Costs and estimated earnings in excess of billings $ 6,356,963 $ (326,509 ) $ 6,030,454 Liabilities Billings in excess of costs and estimated earnings $ 2,043,002 $ (25,105 ) $ 2,017,897 Other accrued expenses $ 1,412,502 $ 794,713 $ 2,207,215 Equity Retained earnings $ 26,959,080 $ 4,999 $ 26,964,079 |
Revenue Impact on Financial Statements Balance Sheet | May 31, 2019 Balance Sheet As Reported Effect of Change Higher/(Lower) Balances Without Adoption of ASU 2014-09 Assets Inventory $ 11,239,331 $ — $ 11,239,331 Costs and estimated earnings in excess of billings $ 7,572,490 $ — $ 7,572,490 Liabilities Other accrued expenses $ 1,532,271 $ — $ 1,532,271 Equity Retained earnings $ 29,508,604 $ — $ 29,508,604 |
Condensed Income Statement [Table Text Block] | For the year ended May 31, 2019 Income Statement As Reported Effect of Change Higher/(Lower) Balances Without Adoption of ASU 2014-09 Revenues Sales, net $ 33,619,031 $ 1,096,117 $ 32,522,914 Costs and Expenses Cost of goods sold $ 24,571,255 $ 1,101,116 $ 23,470,139 Provision for income taxes $ 515,000 $ — $ 515,000 Net income (loss) $ 2,544,525 $ (4,999 ) $ 2,549,524 |
2. Accounts Receivable_ (Tables
2. Accounts Receivable: (Tables) | 12 Months Ended |
May 31, 2019 | |
Receivables [Abstract] | |
Accounts receivable table | 2019 2018 Customers $ 4,438,373 $ 5,515,848 Customers - retention 950,684 859,771 Gross accounts receivable 5,389,057 6,375,619 Less allowance for doubtful accounts 109,755 109,755 Net accounts receivable $ 5,279,302 $ 6,265,864 |
3. Inventory_ (Tables)
3. Inventory: (Tables) | 12 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory table | 2019 2018 Raw materials $ 679,018 $ 726,852 Work-in-process 9,905,495 9,990,225 Finished goods 754,818 700,698 Gross inventory 11,339,331 11,417,775 Less allowance for obsolescence 100,000 100,000 Net inventory $ 11,239,331 $ 11,317,775 |
4. Costs and Estimated Earnin_2
4. Costs and Estimated Earnings on Uncompleted Contracts: (Tables) | 12 Months Ended |
May 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Costs and estimated earnings on uncompleted contracts components table | 2019 2018 Costs incurred on uncompleted contracts $ 16,599,307 $ 12,512,350 Estimated earnings 6,526,707 5,157,890 Total costs and estimated earnings 23,126,014 17,670,240 Less billings to date 16,187,227 13,356,279 Costs and estimated earnings not billed $ 6,938,787 $ 4,313,961 |
Costs and estimated earnings on uncompleted contracts table | 2019 2018 Costs and estimated earnings in excess of billings $ 7,572,490 $ 6,356,963 Billings in excess of costs and estimated earnings 633,703 2,043,002 Costs and estimated earnings not billed $ 6,938,787 $ 4,313,961 |
Costs and estimated earnings on uncompleted contracts two table | 2019 2018 Number of Projects in progress 22 26 Aggregate percent complete 77 % 72 % Aggregate amount remaining $ 6,748,520 $ 6,816,089 Percentage of total value invoiced to customer 54 % 55 % |
5. Maintenance and Other Inve_2
5. Maintenance and Other Inventory: (Tables) | 12 Months Ended |
May 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Maintenance and other inventory table | 2019 2018 Maintenance and other inventory $ 2,197,958 $ 2,287,897 Less allowance for obsolescence 1,466,081 1,402,246 Maintenance and other inventory, net $ 731,877 $ 885,651 |
6. Property and Equipment_ (Tab
6. Property and Equipment: (Tables) | 12 Months Ended |
May 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment table | 2019 2018 Land $ 195,220 $ 195,220 Buildings and improvements 9,342,431 9,342,431 Machinery and equipment 10,390,610 10,302,681 Office furniture and equipment 1,975,392 1,652,711 Autos and trucks 24,818 84,256 Land improvements 455,429 455,429 Gross property and equipment 22,383,900 22,032,728 Less accumulated depreciation 13,066,458 12,097,103 Property and equipment, net $ 9,317,442 $ 9,935,625 |
9. Sales_ (Tables)
9. Sales: (Tables) | 12 Months Ended |
May 31, 2019 | |
Sales | |
Sales by major customer type | 2019 2018 Construction $ 20,168,587 $ 12,192,836 Aerospace / Defense 11,383,374 10,205,945 Industrial 2,067,070 1,965,186 Sales, net $ 33,619,031 $ 24,363,967 |
10. Income Taxes_ (Tables)
10. Income Taxes: (Tables) | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Table | 2019 2018 Current tax provision: Federal $ 521,000 $ 23,000 State — — Total current tax provision 521,000 23,000 Deferred tax provision: Federal (6,000 ) 210,000 State — — Total deferred tax provision (6,000 ) 210,000 Total tax provision $ 515,000 $ 233,000 |
Reconciliation of income tax statutory rate to effective rate | 2019 2018 Computed tax provision at the expected statutory rate $ 642,500 $ 193,500 State income tax - net of Federal tax benefit 500 (1,200 ) Tax effect of permanent differences: Research tax credits (166,000 ) (110,000 ) Tax rate change on deferred taxes — 164,000 Other permanent differences 28,700 (3,700 ) Other 9,300 (9,600 ) Total tax provision $ 515,000 $ 233,000 Effective income tax rate 16.8 % 34.4 % |
Net deferred tax assets | 2019 2018 Deferred tax assets: Allowance for doubtful receivables $ 23,000 $ 23,000 Tax inventory adjustment 99,700 18,800 Allowance for obsolete inventory 328,900 315,500 Accrued vacation 50,200 40,900 Accrued commissions 19,800 14,000 Warranty reserve 30,300 27,600 Stock options issued for services 208,600 223,100 Total deferred tax assets 760,500 662,900 Deferred tax liabilities: Excess tax depreciation 571,385 443,785 Net deferred tax assets $ 189,115 $ 219,115 |
11. Earnings Per Common Share_
11. Earnings Per Common Share: (Tables) | 12 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per common share table | 2019 2018 Average common shares outstanding 3,470,595 3,458,049 Common shares issuable under stock option plans 17,043 30,876 Average common shares outstanding assuming dilution 3,487,638 3,488,925 |
14. Stock Option Plans_ (Tables
14. Stock Option Plans: (Tables) | 12 Months Ended |
May 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock option plans table | 2019 2018 Risk-free interest rate 2.179 % 2.179 % Expected life in years 3.7 3.7 Expected volatility 30 % 30 % Expected dividend yield 0 % 0 % |
Stock options roll foward | Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2017 253,500 $ 10.93 $ 817,629 Options granted 43,750 $ 11.15 Less: options exercised 24,750 $ 6.67 Less: options expired 750 $ 19.26 Outstanding - May 31, 2018 271,750 $ 11.33 $ 304,252 Options granted 43,000 $ 11.90 Less: options exercised 10,750 $ 3.05 Less: options expired 80,000 $ 11.68 Outstanding - May 31, 2019 224,000 $ 11.71 $ 228,132 |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 5.01 6.00 10,000 1.9 $ 5.69 $ 6.01 7.00 10,000 0.9 $ 6.35 $ 7.01 8.00 15,000 3.9 $ 7.74 $ 8.01 9.00 27,250 4.6 $ 8.69 $ 10.01 11.00 15,000 8.9 $ 10.30 $ 11.01 12.00 53,000 8.4 $ 11.79 $ 12.01 13.00 45,000 6.9 $ 12.38 $ 13.01 14.00 15,000 7.9 $ 13.80 $ 16.01 17.00 15,000 6.9 $ 16.40 $ 19.01 20.00 18,750 7.2 $ 19.26 $ 5.00 20.00 224,000 6.5 $ 11.71 The following table summarizes information about stock options outstanding at May 31, 2018: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining years of Contractual Life Weighted Average Exercise Price $ 2.00 3.00 10,000 0.9 $ 2.83 $ 5.01 6.00 15,000 2.9 $ 5.69 $ 6.01 7.00 15,750 1.8 $ 6.34 $ 7.01 8.00 20,000 4.9 $ 7.74 $ 8.01 9.00 32,250 5.7 $ 8.74 $ 10.01 11.00 25,000 9.9 $ 10.30 $ 11.01 12.00 20,000 3.9 $ 11.29 $ 12.01 13.00 55,000 7.7 $ 12.35 $ 13.01 14.00 30,000 8.9 $ 13.80 $ 16.01 17.00 30,000 7.9 $ 16.40 $ 19.01 20.00 18,750 8.2 $ 19.26 $ 2.00 20.00 271,750 6.5 $ 11.33 |
19. Cash Flows Information_ (Ta
19. Cash Flows Information: (Tables) | 12 Months Ended |
May 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | 2019 2018 Interest paid none none Income taxes paid $ 550,498 $ 61,615 |
Impact of Adoption of Standards
Impact of Adoption of Standards Related to Revenue Recognition (Details) - USD ($) | May 31, 2019 | Jun. 01, 2018 | May 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Inventory | $ 11,239,331 | $ 11,317,775 | |
Costs and estimated earnings in excess of billings | 7,572,490 | 6,356,963 | |
Billings in excess of costs and estimated earnings | 633,703 | 2,043,002 | |
Other accrued expenses | 1,532,271 | ||
Retained earnings | $ 29,508,604 | 26,959,080 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Inventory | $ 12,418,891 | 11,317,775 | |
Costs and estimated earnings in excess of billings | 6,030,454 | 6,356,963 | |
Billings in excess of costs and estimated earnings | 2,017,897 | 2,043,002 | |
Other accrued expenses | 2,207,215 | 1,412,502 | |
Retained earnings | 26,964,079 | $ 26,959,080 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Inventory | 1,101,116 | ||
Costs and estimated earnings in excess of billings | (326,509) | ||
Billings in excess of costs and estimated earnings | (25,105) | ||
Other accrued expenses | 794,713 | ||
Retained earnings | $ 4,999 |
Revenue Impact on Financial Sta
Revenue Impact on Financial Statements Balance Sheet (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Inventory | $ 11,239,331 | $ 11,317,775 |
Costs and estimated earnings in excess of billings | 7,572,490 | 6,356,963 |
Other accrued expenses | 1,532,271 | |
Retained earnings | 29,508,604 | $ 26,959,080 |
Accounting Standards Update 2014-09 [Member] | ||
Inventory | 0 | |
Costs and estimated earnings in excess of billings | 0 | |
Other accrued expenses | 0 | |
Retained earnings | $ 0 |
Revenue Impact on Financial S_2
Revenue Impact on Financial Statements Income Statement (Details) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Sales, net | $ 33,619,031 | $ 24,363,967 |
Cost of goods sold | 24,571,255 | 18,439,760 |
Provision for income taxes | 515,000 | 233,000 |
Net income (loss) | 2,544,525 | $ 443,370 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Sales, net | 32,522,914 | |
Cost of goods sold | 23,470,139 | |
Provision for income taxes | 515,000 | |
Net income (loss) | 2,549,524 | |
Accounting Standards Update 2014-09 [Member] | ||
Sales, net | 1,096,117 | |
Cost of goods sold | 1,101,116 | |
Provision for income taxes | 0 | |
Net income (loss) | $ (4,999) |
1. Summary of Significant Acc_4
1. Summary of Significant Accounting Policies: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Accounting Policies [Abstract] | ||
Domestic revenue as percentage of total | 78.00% | 74.00% |
Asian revenue as percentage of total | 17.00% | 21.00% |
Percent of revenue recognized with sales contracts containing a single performance obligation | 45.00% | 40.00% |
Percent of revenue recognized with sales contracts for which revenue is recognized over time | 55.00% | 60.00% |
Shipping and handling costs | $ 268,847 | |
Shipping and handling costs | $ 264,696 | |
Research and development costs | 319,000 | 263,000 |
Share based compensation expense | $ 106,656 | $ 124,931 |
Accounts receivable table (Deta
Accounts receivable table (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Receivables [Abstract] | ||
Customers | $ 4,438,373 | $ 5,515,848 |
Customers - retention | 950,684 | 859,771 |
Gross accounts receivable | 5,389,057 | 6,375,619 |
Less allowance for doubtful accounts | 109,755 | 109,755 |
Net accounts receivable | $ 5,279,302 | $ 6,265,864 |
Inventory table (Details)
Inventory table (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 679,018 | $ 726,852 |
Work-in-process | 9,905,495 | 9,990,225 |
Finished goods | 754,818 | 700,698 |
Gross inventory | 11,339,331 | 11,417,775 |
Less allowance for obsolescence | 100,000 | 100,000 |
Net inventory | $ 11,239,331 | $ 11,317,775 |
Costs and estimated earnings on
Costs and estimated earnings on uncompleted contracts components table (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Costs incurred on uncompleted contracts | $ 16,599,307 | $ 12,512,350 |
Estimated earnings | 6,526,707 | 5,157,890 |
Total costs and estimated earnings | 23,126,014 | 17,670,240 |
Less billings to date | 16,187,227 | 13,356,279 |
Costs and estimated earnings not billed | $ 6,938,787 | $ 4,313,961 |
Costs and estimated earnings _2
Costs and estimated earnings on uncompleted contracts table (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Costs and estimated earnings in excess of billings | $ 7,572,490 | $ 6,356,963 |
Billings in excess of costs and estimated earnings | 633,703 | 2,043,002 |
Costs and estimated earnings not billed | $ 6,938,787 | $ 4,313,961 |
Costs and estimated earnings _3
Costs and estimated earnings on uncompleted contracts two table (Details) | May 31, 2019USD ($) | May 31, 2018USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Number of Projects in progress | 22 | 26 |
Aggregate percent complete | 77.00% | 72.00% |
Aggregate amount remaining | $ 6,748,520 | $ 6,816,089 |
Percentage of total value invoiced to customer | 54.00% | 55.00% |
Maintenance and other inventory
Maintenance and other inventory table (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Maintenance and other inventory | $ 2,197,958 | $ 2,287,897 |
Less allowance for obsolescence | 1,466,081 | 1,402,246 |
Maintenance and other inventory, net | $ 731,877 | $ 885,651 |
4. Costs and Estimated Earnin_3
4. Costs and Estimated Earnings on Uncompleted Contracts: (Details Narrative) | 12 Months Ended | |
May 31, 2019USD ($) | May 31, 2018USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Quantity of Projects not yet started | 4 | 4 |
Sales value of projects not yet in progress | $ 990,971 | $ 8,793,737 |
Revenue recognized in current period for projects included in billings in excess of costs and estimated earnings at end of prior year | $ 4,187,015 | $ 2,005,000 |
5. Maintenance and Other Inve_3
5. Maintenance and Other Inventory: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Provision for potentially obsolete inventory | $ 175,000 | $ 60,000 |
Property and equipment table (D
Property and equipment table (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 195,220 | $ 195,220 |
Buildings and improvements | 9,342,431 | 9,342,431 |
Machinery and equipment | 10,390,610 | 10,302,681 |
Office furniture and equipment | 1,975,392 | 1,652,711 |
Autos and trucks | 24,818 | 84,256 |
Land improvements | 455,429 | 455,429 |
Gross property and equipment | 22,383,900 | 22,032,728 |
Less accumulated depreciation | 13,066,458 | 12,097,103 |
Property and equipment, net | $ 9,317,442 | $ 9,935,625 |
6. Property and Equipment_ (Det
6. Property and Equipment: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,072,959 | $ 995,924 |
Commitments for future capital expenditures | $ 50,000 |
7. Short-Term Borrowings_ (Deta
7. Short-Term Borrowings: (Details Narrative) - USD ($) | May 31, 2019 | May 31, 2018 |
Debt Disclosure [Abstract] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 10,000,000 | |
Line of credit outstanding balance | 0 | $ 0 |
Uncleared checks | $ 292,000 | $ 57,042 |
Sales by major customer type (D
Sales by major customer type (Details) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Sales, net | $ 33,619,031 | $ 24,363,967 |
Construction | ||
Sales, net | 20,168,587 | 12,192,836 |
Aerospace / Defense | ||
Sales, net | 11,383,374 | 10,205,945 |
Industrial | ||
Sales, net | $ 2,067,070 | $ 1,965,186 |
9. Sales_ (Details Narrative)
9. Sales: (Details Narrative) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Sales | ||
Percentage of total sales to significant individual customers | 36.00% | 49.00% |
Percentage of total sales to significant individual customer1 | 17.00% | 14.00% |
Percentage of total sales to significant individual customer2 | 8.00% | 13.00% |
Percentage of total sales to significant individual customer3 | 6.00% | 9.00% |
Percentage of total sales to significant individual customer4 | 5.00% | 7.00% |
Percentage of total sales to significant individual customer5 | 6.00% |
Income Taxes Table (Details)
Income Taxes Table (Details) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Current tax provision: | ||
Federal | $ 521,000 | $ 23,000 |
State | 0 | 0 |
Total current tax provision | 521,000 | 23,000 |
Deferred tax provision: | ||
Federal | (6,000) | 210,000 |
State | 0 | 0 |
Total deferred tax provision | (6,000) | 210,000 |
Total tax provision | $ 515,000 | $ 233,000 |
Reconciliation of income tax st
Reconciliation of income tax statutory rate to effective rate (Details) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Computed tax provision at the expected statutory rate | $ 642,500 | $ 193,500 |
State income tax - net of Federal tax benefit | 500 | (1,200) |
Tax effect of permanent differences: | ||
Research tax credits | (166,000) | (110,000) |
Tax rate change on deferred taxes | 0 | 164,000 |
Other permanent differences | 28,700 | (3,700) |
Other | 9,300 | (9,600) |
Total tax provision | $ 515,000 | $ 233,000 |
Effective income tax rate | 16.80% | 34.40% |
Net deferred tax assets (Detail
Net deferred tax assets (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Deferred tax assets: | ||
Allowance for doubtful receivables | $ 23,000 | $ 23,000 |
Tax inventory adjustment | 99,700 | 18,800 |
Allowance for obsolete inventory | 328,900 | 315,500 |
Accrued vacation | 50,200 | 40,900 |
Accrued commissions | 19,800 | 14,000 |
Warranty reserve | 30,300 | 27,600 |
Stock options issued for services | 208,600 | 223,100 |
Total deferred tax assets | 760,500 | 662,900 |
Deferred tax liabilities: | ||
Excess tax depreciation | 571,385 | 443,785 |
Net deferred tax assets | $ 189,115 | $ 219,115 |
10. Income Taxes_ (Details Narr
10. Income Taxes: (Details Narrative) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | 72 Months Ended | |
May 31, 2019 | Dec. 31, 2018 | May 31, 2019 | May 31, 2018 | May 31, 2025 | |
Income Tax Disclosure [Abstract] | |||||
Corporate income tax rate | 21.00% | 34.00% | |||
Effect of change in tax rate | $ 0 | $ 164,000 | |||
Deferred Tax Assets, Gross | $ 760,500 | 760,500 | $ 662,900 | ||
Deferred tax credits carryforward | $ 370,000 | $ 370,000 | |||
Tax credit carryforward expiration date | May 31, 2025 |
Earnings per common share table
Earnings per common share table (Details) - shares | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Earnings Per Share [Abstract] | ||
Average common shares outstanding | 3,470,595 | 3,458,049 |
Common shares issuable under stock option plans | 17,043 | 30,876 |
Average common shares outstanding assuming dilution | 3,487,638 | 3,488,925 |
13. Employee Stock Purchase P_2
13. Employee Stock Purchase Plan: (Details Narrative) - shares | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Common shares issued from employee stock purchase plan | 1,542 | 1,835 |
Stock option plans table (Detai
Stock option plans table (Details) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 2.179% | 2.179% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 8 months 12 days | 3 years 8 months 12 days |
Expected volatility | 30.00% | 30.00% |
Expected dividend yield | 0.00% | 0.00% |
Stock options roll foward (Deta
Stock options roll foward (Details) - USD ($) | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Stock options outstanding | 224,000 | 271,750 | 253,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 11.71 | $ 11.33 | $ 10.93 |
Intrinsic value of options outstanding | $ 228,132 | $ 304,252 | $ 817,629 |
Options granted | 43,000 | 43,750 | |
Weighted average exercise price of options granted | $ 11.90 | $ 11.15 | |
Stock options exercised | 10,750 | 24,750 | |
Weighted average exercise price of options exercised | $ 3.05 | $ 6.67 | |
Stock options expired | 80,000 | 750 | |
Weighted average exercise price of options expired | $ 11.68 | $ 19.26 |
Stock option plans - Stock opti
Stock option plans - Stock options outstanding and exercisable (Details) | May 31, 2019$ / sharesshares | May 31, 2018$ / sharesshares | May 31, 2017$ / sharesshares |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | $ 5 | $ 2 | |
Range of exercise prices, Maximum | $ 20 | $ 20 | |
Weighted Average Remaining Years of Contractual Life | 6.5 | 6.5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 224,000 | 271,750 | 253,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 11.71 | $ 11.33 | $ 10.93 |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Two [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 5.01 | 5.01 | |
Range of exercise prices, Maximum | $ 6 | $ 6 | |
Number of options | shares | 10,000 | 15,000 | |
Weighted Average Remaining Years of Contractual Life | 1.9 | 2.9 | |
Weighted average exercise price | $ 5.69 | $ 5.69 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Three [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 6.01 | 6.01 | |
Range of exercise prices, Maximum | $ 7 | $ 7 | |
Number of options | shares | 10,000 | 15,750 | |
Weighted Average Remaining Years of Contractual Life | 0.9 | 1.8 | |
Weighted average exercise price | $ 6.35 | $ 6.34 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Four [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 7.01 | 7.01 | |
Range of exercise prices, Maximum | $ 8 | $ 8 | |
Number of options | shares | 15,000 | 20,000 | |
Weighted Average Remaining Years of Contractual Life | 3.9 | 4.9 | |
Weighted average exercise price | $ 7.74 | $ 7.74 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Five [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 8.01 | 8.01 | |
Range of exercise prices, Maximum | $ 9 | $ 9 | |
Number of options | shares | 27,250 | 32,250 | |
Weighted Average Remaining Years of Contractual Life | 4.6 | 5.7 | |
Weighted average exercise price | $ 8.69 | $ 8.74 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Six [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 10.01 | 10.01 | |
Range of exercise prices, Maximum | $ 11 | $ 11 | |
Number of options | shares | 15,000 | 25,000 | |
Weighted Average Remaining Years of Contractual Life | 8.9 | 9.9 | |
Weighted average exercise price | $ 10.30 | $ 10.30 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Seven [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 11.01 | 11.01 | |
Range of exercise prices, Maximum | $ 12 | $ 12 | |
Number of options | shares | 53,000 | 20,000 | |
Weighted Average Remaining Years of Contractual Life | 8.4 | 3.9 | |
Weighted average exercise price | $ 11.79 | $ 11.29 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Eight [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 12.01 | 12.01 | |
Range of exercise prices, Maximum | $ 13 | $ 13 | |
Number of options | shares | 45,000 | 55,000 | |
Weighted Average Remaining Years of Contractual Life | 6.9 | 7.7 | |
Weighted average exercise price | $ 12.38 | $ 12.35 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Nine [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 13.01 | 13.01 | |
Range of exercise prices, Maximum | $ 14 | $ 14 | |
Number of options | shares | 15,000 | 30,000 | |
Weighted Average Remaining Years of Contractual Life | 7.9 | 8.9 | |
Weighted average exercise price | $ 13.80 | $ 13.80 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Ten [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 16.01 | 16.01 | |
Range of exercise prices, Maximum | $ 17 | $ 17 | |
Number of options | shares | 15,000 | 30,000 | |
Weighted Average Remaining Years of Contractual Life | 6.9 | 7.9 | |
Weighted average exercise price | $ 16.40 | $ 16.40 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Eleven [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 19.01 | 19.01 | |
Range of exercise prices, Maximum | $ 20 | $ 20 | |
Number of options | shares | 18,750 | 18,750 | |
Weighted Average Remaining Years of Contractual Life | 7.2 | 8.2 | |
Weighted average exercise price | $ 19.26 | $ 19.26 | |
Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range One [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | 2 | ||
Range of exercise prices, Maximum | $ 3 | ||
Number of options | shares | 10,000 | ||
Weighted Average Remaining Years of Contractual Life | 0.9 | ||
Weighted average exercise price | $ 2.83 |
14. Stock Option Plans_ (Detail
14. Stock Option Plans: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Common shares reserved for stock options | 160,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.20 | $ 2.86 |
Price per share of common | $ 11.08 | $ 10.26 |
Shares available | 21,500 | |
Proceeds exercise of options | $ 32,830 | $ 164,983 |
15. Preferred Stock_ (Details N
15. Preferred Stock: (Details Narrative) | May 31, 2019shares |
Equity [Abstract] | |
Preferred shares authorized | 2,000,000 |
16. Treasury Stock_ (Details Na
16. Treasury Stock: (Details Narrative) - shares | May 31, 2019 | May 31, 2018 |
Equity [Abstract] | ||
Treasury Stock | 550,872 | 550,872 |
17. Retirement Plan_ (Details N
17. Retirement Plan: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Retirement Benefits [Abstract] | ||
Retirement plan expense | $ 71,222 | $ 74,279 |
Supplemental cash flow informat
Supplemental cash flow information (Details) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 0 | $ 0 |
Income taxes paid | $ 550,498 | $ 61,615 |