Cover
Cover - USD ($) | 12 Months Ended | ||
May 31, 2021 | Aug. 27, 2021 | Nov. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | May 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity File Number | 0-3498 | ||
Entity Registrant Name | TAYLOR DEVICES INC | ||
Entity Central Index Key | 0000096536 | ||
Entity Tax Identification Number | 16-0797789 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Address, Address Line One | 90 Taylor Drive | ||
Entity Address, City or Town | North Tonawanda | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 14120 | ||
City Area Code | 716 | ||
Local Phone Number | 694-0800 | ||
Title of 12(g) Security | Common Stock ($.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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 36,765,000 | ||
Entity Common Stock, Shares Outstanding | 3,496,765 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 31, 2021 | May 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 20,581,604 | $ 15,159,827 |
Short-term investments | 1,097,012 | 1,071,950 |
Accounts and other receivables, net | 4,120,564 | 5,819,471 |
Inventory | 5,835,596 | 10,107,437 |
Prepaid expenses | 522,747 | 460,212 |
Prepaid income taxes | 454,778 | 50,148 |
Costs and estimated earnings in excess of billings | 1,499,604 | 1,754,573 |
Total current assets | 34,111,905 | 34,423,618 |
Maintenance and other inventory, net | 1,612,839 | 879,050 |
Property and equipment, net | 9,816,594 | 9,407,490 |
Cash value of life insurance, net | 200,538 | 195,621 |
Deferred income taxes | 190,115 | 170,115 |
Total assets | 45,931,991 | 45,075,894 |
Current liabilities: | ||
Short-term borrowings | 1,461,500 | |
Accounts payable | 1,787,325 | 1,370,175 |
Accrued commissions | 269,064 | 305,885 |
Other accrued expenses | 1,715,409 | 1,663,914 |
Billings in excess of costs and estimated earnings | 1,361,985 | 736,866 |
Total current liabilities | 5,133,783 | 5,538,340 |
Stockholders' Equity: | ||
Common stock, $.025 par value, authorized 8,000,000 shares, issued 4,055,275 and 4,040,805 shares | 101,305 | 100,943 |
Paid-in capital | 10,010,430 | 9,759,063 |
Retained earnings | 33,601,475 | 32,538,580 |
Stockholders’ equity before treasury stock | 43,713,210 | 42,398,586 |
Treasury stock – 558,834 and 553,934 shares at cost | (2,915,002) | (2,861,032) |
Total stockholders' equity | 40,798,208 | 39,537,554 |
Total liabilities and stockholders’ equity | $ 45,931,991 | $ 45,075,894 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | May 31, 2021 | May 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.025 | $ 0.025 |
Common Stock, Shares Authorized | 8,000,000 | 8,000,000 |
Common Stock, Shares, Issued | 4,055,275 | 4,040,805 |
Treasury Stock, Shares | 558,834 | 553,934 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Income Statement [Abstract] | ||
Sales, net | $ 22,509,641 | $ 28,381,541 |
Cost of goods sold | 19,334,950 | 19,144,451 |
Gross profit | 3,174,691 | 9,237,090 |
Selling, general and administrative expenses | 5,526,774 | 5,934,410 |
Operating income (loss) | (2,352,083) | 3,302,680 |
Interest, net | 53,654 | 111,054 |
Paycheck Protection Program loan forgiveness | 1,461,500 | |
Employee Retention Credit | 1,510,131 | |
Miscellaneous | 8,693 | 2,242 |
Total other income | 3,033,978 | 113,296 |
Income before provision for income taxes | 681,895 | 3,415,976 |
Provision for income taxes (benefit) | (381,000) | 386,000 |
Net income | $ 1,062,895 | $ 3,029,976 |
Basic and diluted earnings per common share | $ 0.30 | $ 0.87 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Stockholders' Equity Attributable to Parent | $ 100,735 | $ 9,538,892 | $ 29,508,604 | |
Stockholders' Equity Attributable to Parent, Beginning Balance at May. 31, 2019 | 100,735 | 9,538,892 | 29,508,604 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 34 | 13,824 | ||
Stock Issued During Period, Value, Employee Benefit Plan | 174 | 63,250 | $ (31,673) | |
Stockholders' Equity Attributable to Parent, Ending Balance at May. 31, 2020 | 100,943 | 9,759,063 | 32,538,580 | |
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 143,097 | |||
Net Income (Loss) Attributable to Parent | 3,029,976 | |||
Treasury Stock, Value, Beginning Balance at May. 31, 2019 | (2,829,359) | |||
Treasury Stock, Value, Ending Balance at May. 31, 2020 | (2,861,032) | |||
Stockholders' Equity Attributable to Parent | 100,943 | 9,759,063 | 32,538,580 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 37 | 14,954 | ||
Stock Issued During Period, Value, Employee Benefit Plan | 325 | 82,070 | (53,970) | |
Stockholders' Equity Attributable to Parent, Ending Balance at May. 31, 2021 | 101,305 | 10,010,430 | 33,601,475 | |
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 154,343 | |||
Net Income (Loss) Attributable to Parent | 1,062,895 | |||
Treasury Stock, Value, Ending Balance at May. 31, 2021 | $ (2,915,002) | |||
Stockholders' Equity Attributable to Parent | $ 101,305 | $ 10,010,430 | $ 33,601,475 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Operating activities: | ||
Net income | $ 1,062,895 | $ 3,029,976 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation | 1,212,713 | 1,141,110 |
Stock options issued for services | 154,343 | 143,097 |
Bad debt expense | 134,000 | |
Provision for inventory obsolescence | 1,500,000 | 180,000 |
Deferred income taxes | (20,000) | 19,000 |
Paycheck Protection Program debt forgiveness | (1,461,500) | |
Changes in other current assets and liabilities: | ||
Accounts and other receivables | 1,564,907 | (540,169) |
Inventory | 2,038,052 | 804,721 |
Prepaid expenses | (62,535) | (148,052) |
Prepaid income taxes | (404,630) | 186,869 |
Costs and estimated earnings in excess of billings | 254,969 | 5,817,917 |
Accounts payable | 417,150 | (32,517) |
Accrued commissions | (36,821) | (1,003,473) |
Other accrued expenses | 51,495 | 131,644 |
Billings in excess of costs and estimated earnings | 625,119 | 103,163 |
Net operating activities | 7,030,157 | 9,833,286 |
Investing activities: | ||
Acquisition of property and equipment | (1,621,817) | (1,231,158) |
Increase in short-term investments | (25,062) | (16,359) |
Increase in cash value of life insurance | (4,917) | (4,872) |
Net investing activities | (1,651,796) | (1,252,389) |
Financing activities: | ||
Short-term borrowings | 1,461,500 | |
Proceeds from issuance of common stock | 43,416 | 45,608 |
Net financing activities | 43,416 | 1,507,108 |
Net change in cash and cash equivalents | 5,421,777 | 10,088,005 |
Cash and cash equivalents - beginning | 15,159,827 | 5,071,822 |
Cash and cash equivalents - ending | $ 20,581,604 | $ 15,159,827 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies: | 12 Months Ended |
May 31, 2021 | |
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. 68 20 83 11 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, 2021 and May 31, 2020 include “available for sale” corporate bonds stated at fair value, which approximates cost. The bonds (16) mature on various dates during the period August 2021 to September 2025. 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 and Other Receivables: Accounts and other receivables 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 the 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. Depreciation 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: 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. 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. Other sales to customers are recognized upon shipment to the customer based on contract prices and terms. In the year ended May 31, 2021, 43 57 57 43 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, 2021 and 2020, 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. 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 $ 146,878 420,786 Research and Development Costs: Research and development costs are classified as a component of cost of sales. The amounts of these costs were $ 924,000 585,000 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, 2021 or 2020. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2021 and 2020. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2018. 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, 2021 and 2020 was $ 154,343 143,097 New Accounting Standards: Any recently issued Accounting Standards Codification (ASC) guidance has either been implemented or are not significant to the Company. |
2. Accounts and Other Receivabl
2. Accounts and Other Receivables: | 12 Months Ended |
May 31, 2021 | |
Receivables [Abstract] | |
2. Accounts and Other Receivables: | 2. Accounts and Other Receivables: 2021 2020 Customers $ 3,184,970 $ 5,399,915 Customers – retention 200,956 630,823 Gross accounts receivable 3,385,926 6,030,738 Less Allowance for doubtful accounts 6,781 211,267 Add Other receivables 741,419 — Net accounts receivable $ 4,120,564 $ 5,819,471 Retention receivable from customers represents amounts invoiced to customers where payments have been partially withheld pending completion of the project. All amounts are expected to be collected within the next fiscal year. Other receivable is an amount of Employee Retention Credit claimed by the Company for the second calendar quarter of 2021 and is expected to be received in the third calendar quarter of 2021. |
3. Inventory_
3. Inventory: | 12 Months Ended |
May 31, 2021 | |
Inventory Disclosure [Abstract] | |
3. Inventory: | 3. Inventory: 2021 2020 Raw materials $ 503,344 $ 658,024 Work-in-process 5,076,377 8,586,404 Finished goods 355,875 963,009 Gross inventory 5,935,596 10,207,437 Less allowance for obsolescence 100,000 100,000 Net inventory $ 5,835,596 $ 10,107,437 |
4. Costs and Estimated Earnings
4. Costs and Estimated Earnings on Uncompleted Contracts: | 12 Months Ended |
May 31, 2021 | |
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: 2021 2020 Costs incurred on uncompleted contracts $ 3,372,276 $ 6,395,550 Estimated earnings 778,011 3,816,527 Total costs and estimated earnings 4,150,287 10,212,077 Less billings to date 4,012,668 9,194,370 Costs and estimated earnings not billed $ 137,619 $ 1,017,707 Amounts are included in the accompanying balance sheets under the following captions: 2021 2020 Costs and estimated earnings in excess of billings $ 1,499,604 $ 1,754,573 Billings in excess of costs and estimated earnings 1,361,985 736,866 Costs and estimated earnings not billed $ 137,619 $ 1,017,707 The following summarizes the status of Projects in progress as of May 31, 2021 and 2020: 2021 2020 Number of Projects in progress 14 15 Aggregate percent complete 32 % 80 % Aggregate amount remaining $ 9,333,701 $ 2,234,962 Percentage of total value invoiced to customer 30 % 74 % The Company expects to recognize the entire remaining revenue on all open projects during the May 31, 2022 fiscal year. Revenue recognized during the years ended May 31, 2021 and 2020 for amounts included in billings in excess of costs and estimated earnings as of the beginning of the year amounted to $ 736,866 633,703 |
5. Maintenance and Other Invent
5. Maintenance and Other Inventory: | 12 Months Ended |
May 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
5. Maintenance and Other Inventory: | 5. Maintenance and Other Inventory: 2021 2020 Maintenance and other inventory $ 3,612,000 $ 2,479,497 Less allowance for obsolescence 1,999,161 1,600,447 Maintenance and other inventory, net $ 1,612,839 $ 879,050 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. During fiscal 2021, the Company began a thorough review of the facilities including the flow of inventory through the factory and warehouse areas to determine the most efficient utilization of available space. Inventory purchasing practices and stocking levels were also evaluated and it was determined that a significant portion of the older items would be disposed of while the allowance for potential inventory obsolescence would be increased as more items are identified for disposal. $1,101,000 of inventory was disposed of during the year. The provision for potential inventory obsolescence was $ 1,500,000 180,000 |
6. Property and Equipment_
6. Property and Equipment: | 12 Months Ended |
May 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
6. Property and Equipment: | 6. Property and Equipment: 2021 2020 Land $ 195,220 $ 195,220 Buildings and improvements 9,584,087 9,457,142 Machinery and equipment 12,366,569 11,242,667 Office furniture and equipment 2,536,688 2,209,382 Autos and trucks 24,818 24,818 Land improvements 476,429 455,429 Gross property and equipment 25,183,811 23,584,658 Less accumulated depreciation 15,367,217 14,177,168 Property and equipment, net $ 9,816,594 $ 9,407,490 Depreciation expense was $ 1,212,713 1,141,110 The Company has commitments to make capital expenditures of approximately $ 400,000 |
7. Short-Term Borrowings_
7. Short-Term Borrowings: | 12 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
7. Short-Term Borrowings: | 7. Short-Term Borrowings: During 2020, the Company received a loan totaling $ 1,461,500 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 $ 366,209 523,344 |
8. Legal Proceedings_
8. Legal Proceedings: | 12 Months Ended |
May 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
8. Legal Proceedings: | 8. Legal Proceedings: There are no legal proceedings except for routine litigation incidental to the business. |
10. Income Taxes_
10. Income Taxes: | 12 Months Ended |
May 31, 2021 | |
Income Tax Disclosure [Abstract] | |
10. Income Taxes: | 10. Income Taxes: 2021 2020 Current tax provision (benefit): Federal $ (361,000 ) $ 375,000 State — — Total current tax provision (361,000 ) 375,000 Deferred tax provision (benefit): Federal (20,000 ) 11,000 State — — Total deferred tax provision (20,000 ) 11,000 Total tax provision $ (381,000 ) $ 386,000 A reconciliation of provision for income taxes at the statutory rate to income tax provision at the Company's effective rate is as follows: 2021 2020 Computed tax provision at the expected statutory rate $ 143,200 $ 717,400 State income tax - net of Federal tax benefit — 500 Tax effect of permanent differences: Research tax credits (218,000 ) (272,000 ) Foreign-derived intangible income deduction — (99,739 ) PPP loan forgiveness (306,900 ) — Other permanent differences 41,500 40,200 Other (40,800 ) (361 ) Total tax provision $ (381,000 ) $ 386,000 Effective income tax rate (55.9 %) 11.3 % Significant components of the Company's deferred tax assets and liabilities consist of the following: 2021 2020 Deferred tax assets: Allowance for doubtful receivables $ 1,400 $ 44,400 Tax inventory adjustment 22,900 94,000 Allowance for obsolete inventory 440,800 357,100 Accrued vacation 81,400 60,500 Accrued commissions 5,900 3,900 Warranty reserve 23,900 39,400 Stock options issued for services 238,500 230,200 Total deferred tax assets 814,800 829,500 Deferred tax liabilities: Excess tax depreciation (624,685 ) (659,385 ) Net deferred tax assets $ 190,115 $ 170,115 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 $3.9 million in taxable income in future years in order to realize the deferred tax assets recorded as of May 31, 2021 of $ 814,800 The Company and its subsidiary file consolidated Federal and State income tax returns. As of May 31, 2021, the Company had State investment tax credit carryforwards of approximately $ 368,000 May 2026 |
11. Earnings Per Common Share_
11. Earnings Per Common Share: | 12 Months Ended |
May 31, 2021 | |
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: 2021 2020 Average common shares outstanding 3,490,213 3,481,128 Common shares issuable under stock option plans 1,674 8,663 Average common shares outstanding assuming dilution 3,491,887 3,489,791 |
12. Related Party Transactions_
12. Related Party Transactions: | 12 Months Ended |
May 31, 2021 | |
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, 2021 and 2020. |
13. Employee Stock Purchase Pla
13. Employee Stock Purchase Plan: | 12 Months Ended |
May 31, 2021 | |
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, 2021 and 2020, 1,470 1,374 |
14. Stock Option Plans_
14. Stock Option Plans: | 12 Months Ended |
May 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
14. Stock Option Plans: | 14. Stock Option Plans: 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 Using the Black-Scholes option pricing model, the weighted average estimated fair value of each option granted under the plan was $ 3.27 2.85 2021 2020 Risk-free interest rate 2.31 % 1.98 % Expected life in years 4.0 3.9 Expected volatility 33 % 32 % Expected dividend yield 0 % 0 % The following is a summary of stock option activity: Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2019 224,000 $ 11.71 $ 228,132 Options granted 50,250 $ 10.30 Less: options exercised 10,000 $ 6.35 Less: options expired 12,000 $ 14.34 Outstanding - May 31, 2020 252,250 $ 11.52 $ 209,835 Options granted 47,250 $ 11.26 Less: options exercised 13,000 $ 6.34 Less: options expired 18,750 $ 13.31 Outstanding - May 31, 2021 267,750 $ 11.60 $ 271,426 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 (137,750 at May 31, 2021 and 98,000 at May 31, 2020.) The Company's closing stock price was $ 11.85 10.99 84,000 28,425 31,750 The following table summarizes information about stock options outstanding at May 31, 2021: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 7.01 8.00 15,000 1.6 $ 7.74 $ 8.01 9.00 24,250 2.1 $ 8.71 $ 9.01 10.00 30,000 7.6 $ 9.85 $ 10.01 11.00 32,250 7.2 $ 10.17 $ 11.01 12.00 91,250 7.4 $ 11.71 $ 12.01 13.00 33,750 4.3 $ 12.36 $ 13.01 14.00 15,000 4.2 $ 13.80 $ 16.01 17.00 15,000 3.6 $ 16.40 $ 19.01 20.00 11,250 5.2 $ 19.26 $ 7.01 20.00 267,750 5.7 $ 11.60 The following table summarizes information about stock options outstanding at May 31, 2020: 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 0.9 $ 5.69 $ 7.01 8.00 15,000 2.9 $ 7.74 $ 8.01 9.00 27,250 3.6 $ 8.69 $ 9.01 10.00 30,750 9.9 $ 9.85 $ 10.01 11.00 15,000 7.9 $ 10.30 $ 11.01 12.00 68,750 7.8 $ 11.57 $ 12.01 13.00 40,500 5.8 $ 12.38 $ 13.01 14.00 15,000 6.9 $ 13.80 $ 16.01 17.00 15,000 5.9 $ 16.40 $ 19.01 20.00 15,000 6.2 $ 19.26 $ 5.01 20.00 252,250 6.5 $ 11.52 |
15. Preferred Stock_
15. Preferred Stock: | 12 Months Ended |
May 31, 2021 | |
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, 2021 | |
Equity [Abstract] | |
16. Treasury Stock: | 16. Treasury Stock: Treasury shares are 558,834 553,934 |
17. Retirement Plan_
17. Retirement Plan: | 12 Months Ended |
May 31, 2021 | |
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 $ 288,470 158,191 |
18. Fair Value of Financial Ins
18. Fair Value of Financial Instruments: | 12 Months Ended |
May 31, 2021 | |
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, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
19. Cash Flows Information: | 19. Cash Flows Information: 2021 2020 Interest paid none none Income taxes paid $ 43,630 $ 180,131 |
20. Risks and Uncertainties_
20. Risks and Uncertainties: | 12 Months Ended |
May 31, 2021 | |
Risks and Uncertainties [Abstract] | |
20. Risks and Uncertainties: | 20. Risks and Uncertainties: On January 31, 2020, the United States Secretary of Health and Human Services (HHS) declared a public health emergency related to the global spread of coronavirus COVID-19, and a pandemic was declared by the World Health Organization in February 2020. Efforts to fight the widespread disease included limiting or closing many businesses and resulted in a severe disruption of operations for many organizations. Financial markets also fluctuated significantly during this time. The extent of the impact of COVID-19 on the Company’s operational and financial performance was significant in fiscal 2021. While the use of vaccinations world-wide have apparently slowed spread of the disease, the extent of the impact of COVID-19 on the Company’s operational and financial performance in fiscal 2022 will depend on further developments, including the duration and spread of the outbreak, impact on customers, employees, and vendors, all of which cannot be predicted. As a result of the pandemic described above, the Company applied for, and received, financial assistance from the U.S. federal government as part of the CARES Act and the Consolidated Appropriations Act of 2021 (CAA) including: a.) $1,461,500 of income due to the forgiveness of the PPP loan by the SBA (discussed previously in Note 7), and b.) $1,510,131 of Employee Retention Credit income. These amounts are included in Other income on the Consolidated Statements of Income. |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies: (Policies) | 12 Months Ended |
May 31, 2021 | |
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. 68 20 83 11 |
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, 2021 and May 31, 2020 include “available for sale” corporate bonds stated at fair value, which approximates cost. The bonds (16) mature on various dates during the period August 2021 to September 2025. 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 and Other Receivables: | Accounts and Other Receivables: Accounts and other receivables 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 the 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. Depreciation 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: 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. 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. Other sales to customers are recognized upon shipment to the customer based on contract prices and terms. In the year ended May 31, 2021, 43 57 57 43 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, 2021 and 2020, 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. |
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 $ 146,878 420,786 |
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 $ 924,000 585,000 |
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, 2021 or 2020. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2021 and 2020. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2018. |
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, 2021 and 2020 was $ 154,343 143,097 |
New Accounting Standards: | New Accounting Standards: Any recently issued Accounting Standards Codification (ASC) guidance has either been implemented or are not significant to the Company. |
2. Accounts and Other Receiva_2
2. Accounts and Other Receivables: (Tables) | 12 Months Ended |
May 31, 2021 | |
Receivables [Abstract] | |
Accounts receivable table | 2021 2020 Customers $ 3,184,970 $ 5,399,915 Customers – retention 200,956 630,823 Gross accounts receivable 3,385,926 6,030,738 Less Allowance for doubtful accounts 6,781 211,267 Add Other receivables 741,419 — Net accounts receivable $ 4,120,564 $ 5,819,471 |
3. Inventory_ (Tables)
3. Inventory: (Tables) | 12 Months Ended |
May 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory table | 2021 2020 Raw materials $ 503,344 $ 658,024 Work-in-process 5,076,377 8,586,404 Finished goods 355,875 963,009 Gross inventory 5,935,596 10,207,437 Less allowance for obsolescence 100,000 100,000 Net inventory $ 5,835,596 $ 10,107,437 |
4. Costs and Estimated Earnin_2
4. Costs and Estimated Earnings on Uncompleted Contracts: (Tables) | 12 Months Ended |
May 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Costs and estimated earnings on uncompleted contracts components table | 2021 2020 Costs incurred on uncompleted contracts $ 3,372,276 $ 6,395,550 Estimated earnings 778,011 3,816,527 Total costs and estimated earnings 4,150,287 10,212,077 Less billings to date 4,012,668 9,194,370 Costs and estimated earnings not billed $ 137,619 $ 1,017,707 |
Costs and estimated earnings on uncompleted contracts table | 2021 2020 Costs and estimated earnings in excess of billings $ 1,499,604 $ 1,754,573 Billings in excess of costs and estimated earnings 1,361,985 736,866 Costs and estimated earnings not billed $ 137,619 $ 1,017,707 |
Costs and estimated earnings on uncompleted contracts two table | 2021 2020 Number of Projects in progress 14 15 Aggregate percent complete 32 % 80 % Aggregate amount remaining $ 9,333,701 $ 2,234,962 Percentage of total value invoiced to customer 30 % 74 % |
5. Maintenance and Other Inve_2
5. Maintenance and Other Inventory: (Tables) | 12 Months Ended |
May 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Maintenance and other inventory table | 2021 2020 Maintenance and other inventory $ 3,612,000 $ 2,479,497 Less allowance for obsolescence 1,999,161 1,600,447 Maintenance and other inventory, net $ 1,612,839 $ 879,050 |
6. Property and Equipment_ (Tab
6. Property and Equipment: (Tables) | 12 Months Ended |
May 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment table | 2021 2020 Land $ 195,220 $ 195,220 Buildings and improvements 9,584,087 9,457,142 Machinery and equipment 12,366,569 11,242,667 Office furniture and equipment 2,536,688 2,209,382 Autos and trucks 24,818 24,818 Land improvements 476,429 455,429 Gross property and equipment 25,183,811 23,584,658 Less accumulated depreciation 15,367,217 14,177,168 Property and equipment, net $ 9,816,594 $ 9,407,490 |
9. Sales_ (Tables)
9. Sales: (Tables) | 12 Months Ended |
May 31, 2021 | |
Sales | |
Sales by major customer type | 2021 2020 Structural $ 10,137,468 $ 15,621,784 Aerospace / Defense 10,183,399 10,771,129 Industrial 2,188,774 1,988,628 Sales, net $ 22,509,641 $ 28,381,541 |
10. Income Taxes_ (Tables)
10. Income Taxes: (Tables) | 12 Months Ended |
May 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Table | 2021 2020 Current tax provision (benefit): Federal $ (361,000 ) $ 375,000 State — — Total current tax provision (361,000 ) 375,000 Deferred tax provision (benefit): Federal (20,000 ) 11,000 State — — Total deferred tax provision (20,000 ) 11,000 Total tax provision $ (381,000 ) $ 386,000 |
Reconciliation of income tax statutory rate to effective rate | 2021 2020 Computed tax provision at the expected statutory rate $ 143,200 $ 717,400 State income tax - net of Federal tax benefit — 500 Tax effect of permanent differences: Research tax credits (218,000 ) (272,000 ) Foreign-derived intangible income deduction — (99,739 ) PPP loan forgiveness (306,900 ) — Other permanent differences 41,500 40,200 Other (40,800 ) (361 ) Total tax provision $ (381,000 ) $ 386,000 Effective income tax rate (55.9 %) 11.3 % |
Components of Deferred Tax Assets and Liabilities | 2021 2020 Deferred tax assets: Allowance for doubtful receivables $ 1,400 $ 44,400 Tax inventory adjustment 22,900 94,000 Allowance for obsolete inventory 440,800 357,100 Accrued vacation 81,400 60,500 Accrued commissions 5,900 3,900 Warranty reserve 23,900 39,400 Stock options issued for services 238,500 230,200 Total deferred tax assets 814,800 829,500 Deferred tax liabilities: Excess tax depreciation (624,685 ) (659,385 ) Net deferred tax assets $ 190,115 $ 170,115 |
11. Earnings Per Common Share_
11. Earnings Per Common Share: (Tables) | 12 Months Ended |
May 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per common share table | 2021 2020 Average common shares outstanding 3,490,213 3,481,128 Common shares issuable under stock option plans 1,674 8,663 Average common shares outstanding assuming dilution 3,491,887 3,489,791 |
14. Stock Option Plans_ (Tables
14. Stock Option Plans: (Tables) | 12 Months Ended |
May 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock option plans table | 2021 2020 Risk-free interest rate 2.31 % 1.98 % Expected life in years 4.0 3.9 Expected volatility 33 % 32 % Expected dividend yield 0 % 0 % |
Stock options roll foward | Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2019 224,000 $ 11.71 $ 228,132 Options granted 50,250 $ 10.30 Less: options exercised 10,000 $ 6.35 Less: options expired 12,000 $ 14.34 Outstanding - May 31, 2020 252,250 $ 11.52 $ 209,835 Options granted 47,250 $ 11.26 Less: options exercised 13,000 $ 6.34 Less: options expired 18,750 $ 13.31 Outstanding - May 31, 2021 267,750 $ 11.60 $ 271,426 |
Stock option plans - Stock options outstanding and exercisable | Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 7.01 8.00 15,000 1.6 $ 7.74 $ 8.01 9.00 24,250 2.1 $ 8.71 $ 9.01 10.00 30,000 7.6 $ 9.85 $ 10.01 11.00 32,250 7.2 $ 10.17 $ 11.01 12.00 91,250 7.4 $ 11.71 $ 12.01 13.00 33,750 4.3 $ 12.36 $ 13.01 14.00 15,000 4.2 $ 13.80 $ 16.01 17.00 15,000 3.6 $ 16.40 $ 19.01 20.00 11,250 5.2 $ 19.26 $ 7.01 20.00 267,750 5.7 $ 11.60 |
Stock option plans - Stock options outstanding and exercisable | 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 0.9 $ 5.69 $ 7.01 8.00 15,000 2.9 $ 7.74 $ 8.01 9.00 27,250 3.6 $ 8.69 $ 9.01 10.00 30,750 9.9 $ 9.85 $ 10.01 11.00 15,000 7.9 $ 10.30 $ 11.01 12.00 68,750 7.8 $ 11.57 $ 12.01 13.00 40,500 5.8 $ 12.38 $ 13.01 14.00 15,000 6.9 $ 13.80 $ 16.01 17.00 15,000 5.9 $ 16.40 $ 19.01 20.00 15,000 6.2 $ 19.26 $ 5.01 20.00 252,250 6.5 $ 11.52 |
19. Cash Flows Information_ (Ta
19. Cash Flows Information: (Tables) | 12 Months Ended |
May 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | 2021 2020 Interest paid none none Income taxes paid $ 43,630 $ 180,131 |
1. Summary of Significant Acc_3
1. Summary of Significant Accounting Policies: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Accounting Policies [Abstract] | ||
Percentage of total sales during a period to domestic customers | 6800.00% | 8300.00% |
Percentage of total sales during a period to export customers | 2000.00% | 1100.00% |
Percent of revenue recognized with sales contracts for which revenue is recognized over time | 4300.00% | 5700.00% |
Percent of revenue recognized with sales contracts containing a single performance obligation | 5700.00% | 4300.00% |
Shipping and handling costs | $ 146,878 | $ 420,786 |
Research and development costs | 924,000 | 585,000 |
Share based compensation expense | $ 154,343 | $ 143,097 |
Accounts receivable table (Deta
Accounts receivable table (Details) - USD ($) | May 31, 2021 | May 31, 2020 |
Receivables [Abstract] | ||
Customers | $ 3,184,970 | $ 5,399,915 |
Customers – retention | 200,956 | 630,823 |
Gross accounts receivable | 3,385,926 | 6,030,738 |
Less Allowance for doubtful accounts | 6,781 | 211,267 |
Add Other receivables | 741,419 | |
Net accounts receivable | $ 4,120,564 | $ 5,819,471 |
Inventory table (Details)
Inventory table (Details) - USD ($) | May 31, 2021 | May 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 503,344 | $ 658,024 |
Work-in-process | 5,076,377 | 8,586,404 |
Finished goods | 355,875 | 963,009 |
Gross inventory | 5,935,596 | 10,207,437 |
Less allowance for obsolescence | 100,000 | 100,000 |
Net inventory | $ 5,835,596 | $ 10,107,437 |
Costs and estimated earnings on
Costs and estimated earnings on uncompleted contracts components table (Details) - USD ($) | May 31, 2021 | May 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Costs incurred on uncompleted contracts | $ 3,372,276 | $ 6,395,550 |
Estimated earnings | 778,011 | 3,816,527 |
Total costs and estimated earnings | 4,150,287 | 10,212,077 |
Less billings to date | 4,012,668 | 9,194,370 |
Costs and estimated earnings not billed | $ 137,619 | $ 1,017,707 |
Costs and estimated earnings _2
Costs and estimated earnings on uncompleted contracts table (Details) - USD ($) | May 31, 2021 | May 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Costs and estimated earnings in excess of billings | $ 1,499,604 | $ 1,754,573 |
Billings in excess of costs and estimated earnings | 1,361,985 | 736,866 |
Costs and estimated earnings not billed | $ 137,619 | $ 1,017,707 |
Costs and estimated earnings _3
Costs and estimated earnings on uncompleted contracts two table (Details) | May 31, 2021USD ($) | May 31, 2020USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Number of Projects in progress | 14 | 15 |
Aggregate percent complete | 32.00% | 80.00% |
Aggregate amount remaining | $ 9,333,701 | $ 2,234,962 |
Percentage of total value invoiced to customer | 30.00% | 74.00% |
Maintenance and other inventory
Maintenance and other inventory table (Details) - USD ($) | May 31, 2021 | May 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Maintenance and other inventory | $ 3,612,000 | $ 2,479,497 |
Less allowance for obsolescence | 1,999,161 | 1,600,447 |
Maintenance and other inventory, net | $ 1,612,839 | $ 879,050 |
4. Costs and Estimated Earnin_3
4. Costs and Estimated Earnings on Uncompleted Contracts: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Revenue recognized in current period for projects included in billings in excess of costs and estimated earnings at end of prior year | $ 736,866 | $ 633,703 |
5. Maintenance and Other Inve_3
5. Maintenance and Other Inventory: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Provision for potentially obsolete inventory | $ 1,500,000 | $ 180,000 |
Property and equipment table (D
Property and equipment table (Details) - USD ($) | May 31, 2021 | May 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 195,220 | $ 195,220 |
Buildings and improvements | 9,584,087 | 9,457,142 |
Machinery and equipment | 12,366,569 | 11,242,667 |
Office furniture and equipment | 2,536,688 | 2,209,382 |
Autos and trucks | 24,818 | 24,818 |
Land improvements | 476,429 | 455,429 |
Gross property and equipment | 25,183,811 | 23,584,658 |
Less accumulated depreciation | 15,367,217 | 14,177,168 |
Property and equipment, net | $ 9,816,594 | $ 9,407,490 |
6. Property and Equipment_ (Det
6. Property and Equipment: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1,212,713 | $ 1,141,110 |
Commitments for future capital expenditures | $ 400,000 |
7. Short-Term Borrowings_ (Deta
7. Short-Term Borrowings: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Debt Disclosure [Abstract] | ||
Proceeds from Bank Debt | $ 1,461,500 | |
Current borrowing capacity | 10,000,000 | |
Outstanding balance on line of credit | 0 | 0 |
Uncleared checks | $ 366,209 | $ 523,344 |
Sales by major customer type (D
Sales by major customer type (Details) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Policyholder Account Balance [Line Items] | ||
Sales, net | $ 22,509,641 | $ 28,381,541 |
Structural Seismic Wind Revenue | ||
Policyholder Account Balance [Line Items] | ||
Sales, net | 10,137,468 | 15,621,784 |
Aerospace Defense Revenue | ||
Policyholder Account Balance [Line Items] | ||
Sales, net | 10,183,399 | 10,771,129 |
Industrial Revenue | ||
Policyholder Account Balance [Line Items] | ||
Sales, net | $ 2,188,774 | $ 1,988,628 |
9. Sales_ (Details Narrative)
9. Sales: (Details Narrative) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Sales | ||
Percentage of total sales to significant individual customers | 2100.00% | |
Percentage of total sales to significant individual customer 1 | 1100.00% | 1000.00% |
Percentage of total sales to significant individual customer 2 | 1000.00% |
Income Taxes Table (Details)
Income Taxes Table (Details) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Current tax provision (benefit): | ||
Federal | $ (361,000) | $ 375,000 |
State | ||
Total current tax provision | (361,000) | 375,000 |
Deferred tax provision (benefit): | ||
Federal | (20,000) | 11,000 |
State | ||
Total deferred tax provision | (20,000) | 11,000 |
Total tax provision | $ (381,000) | $ 386,000 |
Reconciliation of income tax st
Reconciliation of income tax statutory rate to effective rate (Details) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Computed tax provision at the expected statutory rate | $ 143,200 | $ 717,400 |
State income tax - net of Federal tax benefit | 500 | |
Tax effect of permanent differences: | ||
Research tax credits | (218,000) | (272,000) |
Foreign-derived intangible income deduction | (99,739) | |
PPP loan forgiveness | (306,900) | |
Other permanent differences | 41,500 | 40,200 |
Other | (40,800) | (361) |
Total tax provision | $ (381,000) | $ 386,000 |
Effective income tax rate | (55.90%) | 11.30% |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | May 31, 2021 | May 31, 2020 |
Deferred tax assets: | ||
Allowance for doubtful receivables | $ 1,400 | $ 44,400 |
Tax inventory adjustment | 22,900 | 94,000 |
Allowance for obsolete inventory | 440,800 | 357,100 |
Accrued vacation | 81,400 | 60,500 |
Accrued commissions | 5,900 | 3,900 |
Warranty reserve | 23,900 | 39,400 |
Stock options issued for services | 238,500 | 230,200 |
Total deferred tax assets | 814,800 | 829,500 |
Deferred tax liabilities: | ||
Excess tax depreciation | (624,685) | (659,385) |
Net deferred tax assets | $ 190,115 | $ 170,115 |
10. Income Taxes_ (Details Narr
10. Income Taxes: (Details Narrative) - USD ($) | 60 Months Ended | ||
May 31, 2026 | May 31, 2021 | May 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Gross | $ 814,800 | $ 829,500 | |
State investment tax credit carryforwards | $ 368,000 | ||
Tax Credit Carryforward, Expiration Date | May 31, 2026 |
Earnings per common share table
Earnings per common share table (Details) - shares | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Earnings Per Share [Abstract] | ||
Average common shares outstanding | 3,490,213 | 3,481,128 |
Common shares issuable under stock option plans | 1,674 | 8,663 |
Average common shares outstanding assuming dilution | 3,491,887 | 3,489,791 |
13. Employee Stock Purchase P_2
13. Employee Stock Purchase Plan: (Details Narrative) - shares | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1,470 | 1,374 |
Stock option plans table (Detai
Stock option plans table (Details) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 2.31% | 1.98% |
Expected life in years | 4 years | 3 years 10 months 24 days |
Expected volatility | 33.00% | 32.00% |
Expected dividend yield | 0.00% | 0.00% |
Stock options roll foward (Deta
Stock options roll foward (Details) - USD ($) | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Stock options outstanding | 267,750 | 252,250 | 224,000 |
Weighted average exercise price of options outstanding | $ 11.60 | $ 11.52 | $ 11.71 |
Intrinsic value of options outstanding | $ 271,426 | $ 209,835 | $ 228,132 |
Options granted | 47,250 | 50,250 | |
Weighted average exercise price of options granted | $ 11.26 | $ 10.30 | |
Stock options exercised | 13,000 | 10,000 | |
Weighted average exercise price of options exercised | $ 6.34 | $ 6.35 | |
Stock options expired | 18,750 | 12,000 | |
Weighted average exercise price of options expired | $ 11.60 | $ 14.34 |
Stock option plans - Stock opti
Stock option plans - Stock options outstanding and exercisable (Details) | May 31, 2021$ / sharesshares | May 31, 2020$ / sharesshares | May 31, 2019$ / sharesshares |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of exercise prices, Minimum | $ 7.01 | ||
Range of exercise prices, Maximum | $ 20 | ||
Remaining number of years | 5.7 | ||
Number of Options | shares | 267,750 | 252,250 | 224,000 |
Weighted Average Exercise Price | $ 11.60 | $ 11.52 | $ 11.71 |
Range of exercise prices, Minimum | 5.01 | ||
Range of exercise prices, Maximum | $ 20 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 267,750 | 252,250 | 224,000 |
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 | $ 7.01 | ||
Range of exercise prices, Maximum | $ 8 | ||
Number of Options | shares | 15,000 | 15,000 | |
Remaining number of years | 1.6 | ||
Weighted Average Exercise Price | $ 7.74 | ||
Range of exercise prices, Minimum | $ 7.01 | ||
Range of exercise prices, Maximum | $ 8 | ||
Remaining number of years | 2.9 | ||
Weighted Average Exercise Price | shares | 7.74 | ||
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 | 8.01 | ||
Range of exercise prices, Maximum | $ 9 | ||
Number of Options | shares | 24,250 | 27,250 | |
Remaining number of years | 2.1 | ||
Weighted Average Exercise Price | $ 8.71 | ||
Range of exercise prices, Minimum | $ 8.01 | ||
Range of exercise prices, Maximum | $ 9 | ||
Remaining number of years | 3.6 | ||
Weighted Average Exercise Price | shares | 8.69 | ||
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 | 9.01 | ||
Range of exercise prices, Maximum | $ 10 | ||
Number of Options | shares | 30,000 | 30,750 | |
Remaining number of years | 7.6 | ||
Weighted Average Exercise Price | $ 9.85 | ||
Range of exercise prices, Minimum | $ 9.01 | ||
Range of exercise prices, Maximum | $ 10 | ||
Remaining number of years | 9.9 | ||
Weighted Average Exercise Price | shares | 9.85 | ||
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 | 10.01 | ||
Range of exercise prices, Maximum | $ 11 | ||
Number of Options | shares | 32,250 | 15,000 | |
Remaining number of years | 7.2 | ||
Weighted Average Exercise Price | $ 10.17 | ||
Range of exercise prices, Minimum | $ 10.01 | ||
Range of exercise prices, Maximum | $ 11 | ||
Remaining number of years | 7.9 | ||
Weighted Average Exercise Price | shares | 10.30 | ||
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 | 11.01 | ||
Range of exercise prices, Maximum | $ 12 | ||
Number of Options | shares | 91,250 | 68,750 | |
Remaining number of years | 7.4 | ||
Weighted Average Exercise Price | $ 11.71 | ||
Range of exercise prices, Minimum | $ 11.01 | ||
Range of exercise prices, Maximum | $ 12 | ||
Remaining number of years | 7.8 | ||
Weighted Average Exercise Price | shares | 11.57 | ||
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 | 12.01 | ||
Range of exercise prices, Maximum | $ 13 | ||
Number of Options | shares | 33,750 | 40,500 | |
Remaining number of years | 4.3 | ||
Weighted Average Exercise Price | $ 12.36 | ||
Range of exercise prices, Minimum | $ 12.01 | ||
Range of exercise prices, Maximum | $ 13 | ||
Remaining number of years | 5.8 | ||
Weighted Average Exercise Price | shares | 12.38 | ||
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 | 13.01 | ||
Range of exercise prices, Maximum | $ 14 | ||
Number of Options | shares | 15,000 | 15,000 | |
Remaining number of years | 4.2 | ||
Weighted Average Exercise Price | $ 13.80 | ||
Range of exercise prices, Minimum | $ 13.01 | ||
Range of exercise prices, Maximum | $ 14 | ||
Remaining number of years | 6.9 | ||
Weighted Average Exercise Price | shares | 13.80 | ||
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 | 16.01 | ||
Range of exercise prices, Maximum | $ 17 | ||
Number of Options | shares | 15,000 | 15,000 | |
Remaining number of years | 3.6 | ||
Weighted Average Exercise Price | $ 16.40 | ||
Range of exercise prices, Minimum | $ 16.01 | ||
Range of exercise prices, Maximum | $ 17 | ||
Remaining number of years | 5.9 | ||
Weighted Average Exercise Price | shares | 16.40 | ||
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 | 19.01 | ||
Range of exercise prices, Maximum | $ 20 | ||
Number of Options | shares | 11,250 | 15,000 | |
Remaining number of years | 5.2 | ||
Weighted Average Exercise Price | $ 19.26 | ||
Range of exercise prices, Minimum | $ 19.01 | ||
Range of exercise prices, Maximum | $ 20 | ||
Remaining number of years | 6.2 | ||
Weighted Average Exercise Price | shares | 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] | |||
Number of Options | shares | 10,000 | ||
Range of exercise prices, Maximum | $ 6 | ||
Remaining number of years | 0.9 | ||
Weighted Average Exercise Price | shares | 5.69 |
14. Stock Option Plans_ (Detail
14. Stock Option Plans: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
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 | $ 3.27 | $ 2.85 |
Price per share of common | $ 11.85 | $ 10.99 |
Shares available | 84,000 | |
Proceeds exercise of options | $ 28,425 | $ 31,750 |
15. Preferred Stock_ (Details N
15. Preferred Stock: (Details Narrative) | May 31, 2021shares |
Equity [Abstract] | |
Preferred shares authorized | 2,000,000 |
16. Treasury Stock_ (Details Na
16. Treasury Stock: (Details Narrative) - shares | May 31, 2021 | May 31, 2020 |
Equity [Abstract] | ||
Treasury Stock | 558,834 | 553,934 |
17. Retirement Plan_ (Details N
17. Retirement Plan: (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Retirement Benefits [Abstract] | ||
Retirement plan expense | $ 288,470 | $ 158,191 |
Supplemental cash flow informat
Supplemental cash flow information (Details) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 0 | $ 0 |
Income taxes paid | $ 43,630 | $ 180,131 |