Taylor Devices (TAYD) 10-K 15 Aug 24 2024 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	May 31, 2024	Aug. 15, 2024	Nov. 30, 2023
Registrant CIK	0000096536
Fiscal Year End	--05-31
Document Type	10-K
Document Annual Report	true
Document Period End Date	May 31, 2024
Document Transition Report	false
Securities Act File Number	000-3498
Entity Registrant Name	TAYLOR DEVICES INC
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	16-0797789
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
Entity Address, Address Description	Address of principal executive offices
Phone Fax Number Description	Registrant's telephone number, including area code
City Area Code	716
Local Phone Number	694-0800
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
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction	false
Entity Shell Company	false
Entity Public Float			$ 81,769,000
Entity Common Stock, Shares Outstanding		3,118,627
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Auditor Name	Lumsden & McCormick, LLP
Auditor Firm ID	130
Auditor Location	Buffalo, New York
Common Class A
Title of 12(b) Security	Common Stock, $.025 par value per share
Trading Symbol	TAYD
Security Exchange Name	NASDAQ
Series A Preferred Stock
Title of 12(b) Security	Preferred Stock Purchase Rights

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)		May 31, 2024	May 31, 2023
Current assets
Cash and cash equivalents		$ 2,831,471	$ 3,575,219
Short-term investments		28,131,279	24,514,757
Accounts and other receivables, net (Note 2)	[1]	5,212,408	5,553,504
Inventory (Note 3)	[2]	7,512,052	5,941,304
Prepaid expenses		725,506	439,607
Prepaid income taxes		0	228,947
Costs and estimated earnings in excess of billings (Note 4)	[3]	4,356,565	4,124,182
Total current assets		48,769,281	44,377,520
Maintenance and other inventory, net (Note 5)	[4]	1,579,829	1,003,140
Property and equipment, net (Note 6)	[5]	11,180,933	11,721,784
Patents, net		292,593	0
Cash value of life insurance, net		214,824	210,120
Other assets		27,343	0
Deferred income taxes (Note 10)	[6]	1,012,615	568,615
Assets		63,077,418	57,881,179
Current liabilities
Accounts payable		1,438,847	1,717,657
Accrued expenses (Note 8)	[7]	4,664,463	4,078,322
Billings in excess of costs and estimated earnings (Note 4)	[3]	5,601,274	1,992,470
Accrued income taxes		126,148	0
Total current liabilities		11,830,732	7,788,449
Stockholders' Equity
Common Stock, Value		104,056	102,127
Paid-in capital		12,959,531	10,947,089
Retained earnings		51,127,018	42,128,256
Treasury stock - 1,046,742 and 567,751 shares at cost		(12,943,919)	(3,084,742)
Total stockholders' equity		51,246,686	50,092,730
Liabilities and Equity		$ 63,077,418	$ 57,881,179
[1]Note 2[2]Note 3[3]Note 4Note 4[4]Note 5[5]Note 6[6]Note 10Note 10[7]Note 8

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical - $ / shares	May 31, 2024	May 31, 2023
Consolidated Balance Sheets
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	4,165,315	4,088,193
Common Stock, Shares, Outstanding	4,165,315	4,088,193
Treasury Stock, Common, Shares	1,046,742	567,751

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)		12 Months Ended
		May 31, 2024	May 31, 2023
Consolidated Statements of Income
Sales, net (Note 9)	[1]	$ 44,582,807	$ 40,199,354
Cost of goods sold		23,743,554	23,250,039
Gross profit		20,839,253	16,949,315
Research and development costs		388,476	1,096,807
Selling, general and administrative expenses		10,971,358	9,043,442
Operating income		9,479,419	6,809,066
Other income (expense)
Interest, net		1,426,584	698,864
Miscellaneous		14,759	(2,572)
Total other income, net		1,441,343	696,292
Income before provision for income taxes		10,920,762	7,505,358
Provision for income taxes (Note 10)	[2]	1,922,000	1,218,000
Net income		$ 8,998,762	$ 6,287,358
Basic earnings per common share (Note 11)	[3]	$ 2.68	$ 1.79
Diluted earnings per common share (Note 11)	[3]	$ 2.58	$ 1.77
[1]Note 9[2]Note 10Note 10[3]Note 11Note 11

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock, Common
Equity, Attributable to Parent, Beginning Balance at May. 31, 2022		$ 101,342	$ 10,227,916	$ 35,840,898	$ (2,915,002)
Issuance of shares for employee stock purchase plan		22	10,854
Issuance of shares for employee stock option plan		763	291,066		(169,740)
Equity, Attributable to Parent, Ending Balance at May. 31, 2023	$ 50,092,730	102,127	10,947,089	42,128,256	(3,084,742)
Stock options issued for services			417,253
Net income	6,287,358			6,287,358
Repurchase of shares					0
Issuance of shares for employee stock purchase plan		10	9,904
Issuance of shares for employee stock option plan		1,919	955,286		(715,599)
Equity, Attributable to Parent, Ending Balance at May. 31, 2024	51,246,686	$ 104,056	12,959,531	51,127,018	(12,943,919)
Stock options issued for services			$ 1,047,252
Net income	$ 8,998,762			$ 8,998,762
Repurchase of shares					$ (9,143,578)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Operating activities
Net income	$ 8,998,762	$ 6,287,358
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation	1,690,239	1,472,455
Amortization	7,407	0
Stock options issued for services	1,047,252	417,253
Bad debt expense	0	23,360
Loss on disposal of property and equipment	0	20,015
Provision for inventory obsolescence	385,744	295,014
Deferred income taxes	(444,000)	(494,000)
Changes in other current assets and liabilities
Accounts and other receivables	341,096	(1,110,178)
Inventory	(2,533,181)	(277,214)
Prepaid expenses	(285,899)	28,882
Prepaid income taxes	228,947	7,000
Costs and estimated earnings in excess of billings	(232,383)	(787,708)
Accounts payable	(278,810)	290,827
Accrued expenses	586,141	664,008
Billings in excess of costs and estimated earnings	3,608,804	869,707
Accrued income taxes	126,148	0
Other assets	(27,343)	0
Net operating activities	13,218,924	7,706,779
Investing activities
Acquisition of property and equipment	(1,149,388)	(3,359,495)
Patent expenditures	(300,000)	0
Increase in short-term investments	(3,616,522)	(23,417,307)
Increase in cash value of life insurance	(4,704)	(4,761)
Net investing activities	(5,070,614)	(26,781,563)
Financing activities
Proceeds from issuance of common stock	967,119	302,705
Acquisition of treasury stock	(9,859,177)	(169,740)
Net financing activities	(8,892,058)	132,965
Net change in cash and cash equivalents	(743,748)	(18,941,819)
Cash and cash equivalents - beginning	3,575,219	22,517,038
Cash and cash equivalents - ending	$ 2,831,471	$ 3,575,219

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	12 Months Ended
	May 31, 2024
Notes
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 nine categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, Vibration Dampers, Machined Springs, Custom Shock and Vibration Isolators, 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. 86% of the Company's 2024 revenue was generated from sales to customers in the United States and 4% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe, Australia, and South America. 81% of the Company's 2023 revenue was generated from sales to customers in the United States and 11% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe, Australia, and South America. Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Tayco Realty Corporation (Realty). All inter-company transactions and balances have been eliminated in consolidation. Subsequent Events: The Company has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents: The Company includes all highly liquid investments in money market funds in cash and cash equivalents on the accompanying balance sheets. Cash and cash equivalents in financial institutions may exceed insured limits at various times during the year and subject the Company to concentrations of credit risk. Short-Term Investments: At times, the Company invests excess funds in liquid interest earning instruments. Short-term investments at May 31, 2024 and May 31, 2023 include money market funds, US treasury securities and corporate bonds stated at fair value, which approximates cost. The short-term investments (22) mature on various dates during the period June 2024 to December 2026. 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 short-term investments 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, 2024, 59% of revenue was recorded for contracts in which revenue was recognized over time while 41% was recognized at a point in time. In the year ended May 31, 2023, 61% of revenue was recorded for contracts in which revenue was recognized over time while 39% was recognized at a point in time. 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, 2024 and 2023, 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 $190,939 and $366,763 for the years ended May 31, 2024 and 2023. Shipping and handling activities that occur after the customer has obtained control of the product are considered fulfillment activities, not performance obligations. 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, 2024 and 2023. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2024 and 2023. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2021. 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, 2024 and 2023 was $1,047,252 and $417,253. New Accounting Standards: Any recently issued Accounting Standards Codification (ASC) guidance has either been implemented or is not significant to the Company. Reclassifications: The 2023 financial statements have been reclassified to conform with the presentation adopted for 2024.

2. Accounts and Other Receivabl

2. Accounts and Other Receivables	12 Months Ended
	May 31, 2024
Notes
2. Accounts and Other Receivables:	2. Accounts and Other Receivables: 2024 2023 Customers $ 5,241,874 $ 5,558,990 Customers – retention - 23,980 5,241,874 5,582,970 Less allowance for doubtful accounts 29,466 29,466 $ 5,212,408 $ 5,553,504 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.

3. Inventory

3. Inventory	12 Months Ended
	May 31, 2024
Notes
3. Inventory:	3. Inventory: 2024 2023 Raw materials $ 886,947 $ 673,453 Work-in-process 6,412,497 5,005,416 Finished goods 271,608 330,435 7,571,052 6,009,304 Less allowance for obsolescence 59,000 68,000 $ 7,512,052 $ 5,941,304

4. Costs and Estimated Earnings

4. Costs and Estimated Earnings on Uncompleted Contracts	12 Months Ended
	May 31, 2024
Notes
4. Costs and Estimated Earnings on Uncompleted Contracts:	4. Costs and Estimated Earnings on Uncompleted Contracts: 2024 2023 Costs incurred on uncompleted contracts $ 10,576,401 $ 5,349,111 Estimated earnings 10,459,240 4,850,889 21,035,641 10,200,000 Less billings to date 22,280,350 8,068,288 $ (1,244,709 ) $ 2,131,712 Amounts are included in the accompanying balance sheets under the following captions: 2024 2023 Costs and estimated earnings in excess of billings $ 4,356,565 $ 4,124,182 Billings in excess of costs and estimated earnings 5,601,274 1,992,470 $ (1,244,709 ) $ 2,131,712 The following summarizes the status of Projects in progress as of May 31, 2024 and 2023: 2024 2023 Number of Projects in progress 19 22 Aggregate percent complete 53% 33% Aggregate amount remaining $17,405,603 $18,061,484 Percentage of total value invoiced to customer 56% 29% The Company expects to recognize the majority of remaining revenue on all open projects during the May 31, 2025 fiscal year. Revenue recognized during the years ended May 31, 2024 and 2023 for amounts included in billings in excess of costs and estimated earnings as of the beginning of the year amounted to $1,992,000, and $1,123,000.

5. Maintenance and Other Invent

5. Maintenance and Other Inventory	12 Months Ended
	May 31, 2024
Notes
5. Maintenance and Other Inventory:	5. Maintenance and Other Inventory: 2024 2023 Maintenance and other inventory $ 2,416,748 $ 2,236,106 Less allowance for obsolescence 836,919 1,232,966 $ 1,579,829 $ 1,003,140 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. $791,000 and $322,000 of inventory was disposed of during the years ended May 31, 2024 and 2023. The provision for potential inventory obsolescence was $386,000 and $295,000 for the years ended May 31, 2024 and 2023. The Company continues to rework slow-moving inventory, where applicable, to convert it to product to be used on customer orders.

6. Property and Equipment

6. Property and Equipment	12 Months Ended
	May 31, 2024
Notes
6. Property and Equipment:	6. Property and Equipment: 2024 2023 Land $ 195,220 $ 195,220 Buildings and improvements 10,054,459 10,033,399 Machinery and equipment 15,956,076 15,278,928 Office furniture and equipment 3,113,921 2,840,980 Autos and trucks 24,818 24,818 Land improvements 662,168 483,929 30,006,662 28,857,274 Less accumulated depreciation 18,825,729 17,135,490 $ 11,180,933 $ 11,721,784 Depreciation expense was $1,690,239 and $1,472,455 for the years ended May 31, 2024 and 2023. The Company has commitments to make capital expenditures of approximately $1,360,000 as of May 31, 2024.

7. Short-Term Borrowings

7. Short-Term Borrowings	12 Months Ended
	May 31, 2024
Notes
7. Short-Term Borrowings:	7. Short-Term Borrowings: The Company has available a $10,000,000 bank demand line of credit from a bank, with interest payable at the Company's option of 30, 60 or 90 day SOFR rate plus 2.365%. The line is secured by a negative pledge of the Company's real and personal property and is subject to renewal annually. There is no amount outstanding under the line of credit at May 31, 2024 or 2023. 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 $372,347 and $13,873 as of May 31, 2024 and 2023. These amounts are included in accounts payable.

8. Accrued Expenses

8. Accrued Expenses	12 Months Ended
	May 31, 2024
Notes
8. Accrued Expenses:	8. Accrued Expenses: 2024 2023 Customer deposits $ 285,689 $ 367,902 Personnel costs 3,763,777 3,023,501 Other 614,997 686,919 $ 4,664,463 $ 4,078,322

9. Sales

9. Sales	12 Months Ended
	May 31, 2024
Notes
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 nine categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, Vibration Dampers, Machined Springs, Custom Shock and Vibration Isolators, 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, structural and aerospace / defense. A breakdown of sales to these three general groups of customers is as follows: 202 4 2023 Structural $ 14,406,863 $ 20,642,326 Aerospace / Defense 26,675,321 15,568,695 Industrial 3,500,623 3,988,333 $ 44,582,807 $ 40,199,354 Sales to a single customer approximated 21% of net sales for 2024.

10. Income Taxes

10. Income Taxes	12 Months Ended
	May 31, 2024
Notes
10. Income Taxes:	10. Income Taxes: 2024 2023 Current tax provision: Federal $ 2,365,000 $ 1,710,000 State 1,000 2,000 2,366,000 1,712,000 Deferred tax provision (benefit): Federal (444,000 ) (494,000 ) State - - (444,000 ) (494,000 ) $ 1,922,000 $ 1,218,000 A reconciliation of provision for income taxes at the statutory rate to income tax provision at the Company's effective rate is as follows: 2024 2023 Computed tax provision at the expected statutory rate $ 2,293,400 $ 1,576,100 State income tax - net of Federal tax benefit - (1,600) Tax effect of permanent differences: Research tax credits (407,675) (283,600) Foreign-derived intangible income deduction (142,100) (66,900) Stock option costs 48,500 - Other permanent differences 2,800 900 Other 127,075 (6,900) $ 1,922,000 $ 1,218,000 Effective income tax rate 17.6% 16.2% Significant components of the Company's deferred tax assets and liabilities consist of the following: 2024 2023 Deferred tax assets: Allowance for doubtful receivables $ 6,200 $ 6,200 Tax inventory adjustment 57,300 84,300 Allowance for obsolete inventory 188,100 273,200 Accrued vacation 163,000 136,600 Accrued commissions - 9,800 Warranty reserve 100,700 62,700 R&D tax credit - - R&D capitalization 1,479,800 678,500 Stock options issued for services 181,200 331,300 2,176,300 1,582,600 Deferred tax liabilities: Excess tax depreciation (1,163,685) (1,013,985) Net deferred tax assets $ 1,012,615 $ 568,615 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 $10.4 million in taxable income in future years in order to realize the deferred tax assets recorded as of May 31, 2024 of $2,176,300. The Company and its subsidiary file consolidated Federal and State income tax returns. As of May 31, 2024, the Company had State investment tax credit carryforwards of approximately $424,000 expiring through May 2029.

11. Earnings Per Common Share

11. Earnings Per Common Share	12 Months Ended
	May 31, 2024
Notes
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: 2024 2023 Average common shares outstanding 3,353,077 3,506,474 Common shares issuable under stock option plans 135,711 45,020 Average common shares outstanding assuming dilution 3,488,788 3,551,494

12. Employee Stock Purchase Pla

12. Employee Stock Purchase Plan	12 Months Ended
	May 31, 2024
Notes
12. Employee Stock Purchase Plan:	12. 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 and without brokers’ fees. 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, 2024 and 2023, 372 ($21.70 to $48.89 price per share) and 922 ($8.65 to $19.96 price per share) common shares, respectively, were issued to employees. As of May 31, 2024, 215,993 shares were reserved for further issue.

13. Stock Option Plans

13. Stock Option Plans	12 Months Ended
	May 31, 2024
Notes
13. Stock Option Plans:	13. Stock Option Plans: In 2022, 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, 260,000 shares of common stock have been reserved for grant to key employees and directors of the Company and 144,000 shares have been granted as of May 31, 2024. Under the plan, the option price may not be less than the fair market value of the stock at the time the options are granted. Options vest immediately and expire ten years from the date of grant. Using the Black-Scholes option pricing model, the weighted average estimated fair value of each option granted under the plan was $12.32 during 2024 and $4.91 during 2023. The pricing model uses the assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company's stock. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options granted is derived from previous history of stock exercises from the grant date and represents the period of time that options granted are expected to be outstanding. The Company uses historical data to estimate option exercise and employee termination assumptions under the valuation model. The Company has never paid dividends on its common stock and does not anticipate doing so in the foreseeable future. 2024 2023 Risk-free interest rate 4.00% 2.45% Expected life in years 4.3 4.2 Expected volatility 37% 33% Expected dividend yield 0% 0% The following is a summary of stock option activity: Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2022 283,000 $ 11.43 $ 28,248 Options granted 85,000 $ 15.75 Less: options exercised 30,500 $ 9.57 Less: options expired 4,500 - Outstanding - May 31, 2023 333,000 $ 12.70 $ 2,016,961 Options granted 85,000 $ 34.04 Less: options exercised 76,750 $ 12.54 Less: options expired 750 - Outstanding - May 31, 2024 340,500 $ 18.07 $ 11,185,815 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 (340,500 at May 31, 2024 and 279,500 at May 31, 2023). The Company's closing stock price was $50.92 and $18.55 as of May 31, 2024 and 2023. As of May 31, 2024, there are 116,000 options available for future grants under the 2022 stock option plan. $957,205 was received from the exercise of options during the fiscal year ended May 31, 2024. $291,829 was received from the exercise of options during the fiscal year ended May 31, 2023. The following table summarizes information about stock options outstanding at May 31, 2024: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 9.01-$10.00 55,000 7.0 $ 9.67 $10.01-$11.00 15,250 4.7 $10.21 $11.01-$12.00 106,250 6.5 $11.72 $12.01-$13.00 19,000 1.5 $12.36 $13.01-$14.00 10,000 2.9 $13.80 $16.01-$17.00 10,000 1.9 $16.40 $19.01-$20.00 47,500 8.3 $19.89 $20.01-$21.00 34,500 9.4 $20.78 $46.01-$47.00 43,000 9.9 $46.99 $ 9.01-$47.00 340,500 6.9 $18.07 The following table summarizes information about stock options outstanding at May 31, 2023: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 8.01-$ 9.00 13,000 0.9 $ 8.87 $ 9.01-$10.00 55,000 8.0 $ 9.67 $10.01-$11.00 23,500 6.2 $10.16 $11.01-$12.00 140,000 7.5 $11.66 $12.01-$13.00 28,000 2.8 $12.39 $13.01-$14.00 10,000 3.9 $13.80 $16.01-$17.00 10,000 2.9 $16.40 $19.01-$20.00 53,500 8.6 $19.82 $ 8.01-$20.00 333,000 6.8 $12.70

14. Retirement Plan

14. Retirement Plan	12 Months Ended
	May 31, 2024
Notes
14. Retirement Plan:	14. 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 $431,720 and $371,881 for the years ended May 31, 2024 and 2023.

15. Fair Value of Financial Ins

15. Fair Value of Financial Instruments	12 Months Ended
	May 31, 2024
Notes
15. Fair Value of Financial Instruments:	15. 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.

16. Cash Flows Information

16. Cash Flows Information	12 Months Ended
	May 31, 2024
Notes
16. Cash Flows Information:	16. Cash Flows Information: 2024 2023 Interest paid None None Income taxes paid $2,010,000 $1,705,000

17. Legal Proceedings

17. Legal Proceedings	12 Months Ended
	May 31, 2024
Notes
17. Legal Proceedings:	17. Legal Proceedings: The Company has been named as a third-party defendant in an action captioned Board of Managers of the 432 Park Condominium, et al. v. 56 th The Action was filed on or about September 23, 2021. In the Action, the Board of Managers of 432 Park Condominium (the “Owner”), a condominium association for a high-rise condominium building (the “Building”) located at 432 Park Avenue in New York, N.Y., asserts a claim against the condominium sponsor, 56 th The Sponsor subsequently filed a third-party complaint against LendLease Construction (US) LMB (“LendLease”) and other parties involved in the Building’s design. As to LendLease, the third-party complaint alleges breach of a construction management contract between LendLease and the Sponsor and negligence arising from purported failure to perform under the contract, and seeks indemnification against any damages asserted against the Sponsor by the Owner. LendLease subsequently initiated a third-party complaint seeking indemnification from entities with whom LendLease had contracted for the supply of materials and services in connection with construction of the Building. The third-party complaint also names the Company as a third-party defendant based upon a contract between the Company and LendLease to supply 16 Viscous Damping Devices that were incorporated into a Tuned Mass Damper system designed by a third party to limit accelerations of the Building during wind events. The Company has timely filed and served an answer denying the allegations in LendLease’s third party complaint. The Action, and all of the related third-party actions, are pending in the Commercial Division of the Supreme Court, New York County. On June 17, 2024, the Court entered a scheduling order directing that the parties complete discovery by July 31, 2025 and file dispositive motions by October 17, 2025. In view of the limited discovery to date, it is not possible to determine the likelihood of an unfavorable outcome or to quantify a potential loss.

1. Summary of Significant Acc_2

1. Summary of Significant Accounting Policies: Nature of Operations (Policies)	12 Months Ended
	May 31, 2024
Policies
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 nine categories; namely, Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, Vibration Dampers, Machined Springs, Custom Shock and Vibration Isolators, 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. 86% of the Company's 2024 revenue was generated from sales to customers in the United States and 4% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe, Australia, and South America. 81% of the Company's 2023 revenue was generated from sales to customers in the United States and 11% was from sales to customers in Asia. Remaining sales were to customers in other countries in North America, Europe, Australia, and South America.

1. Summary of Significant Acc_3

1. Summary of Significant Accounting Policies: Principles of Consolidation (Policies)	12 Months Ended
	May 31, 2024
Policies
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.

1. Summary of Significant Acc_4

1. Summary of Significant Accounting Policies: Subsequent Events (Policies)	12 Months Ended
	May 31, 2024
Policies
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.

1. Summary of Significant Acc_5

1. Summary of Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	May 31, 2024
Policies
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.

1. Summary of Significant Acc_6

1. Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	May 31, 2024
Policies
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.

1. Summary of Significant Acc_7

1. Summary of Significant Accounting Policies: Short-Term Investments (Policies)	12 Months Ended
	May 31, 2024
Policies
Short-Term Investments:	Short-Term Investments: At times, the Company invests excess funds in liquid interest earning instruments. Short-term investments at May 31, 2024 and May 31, 2023 include money market funds, US treasury securities and corporate bonds stated at fair value, which approximates cost. The short-term investments (22) mature on various dates during the period June 2024 to December 2026. 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 short-term investments 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.

1. Summary of Significant Acc_8

1. Summary of Significant Accounting Policies: Accounts and Other Receivables (Policies)	12 Months Ended
	May 31, 2024
Policies
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.

1. Summary of Significant Acc_9

1. Summary of Significant Accounting Policies: Inventory (Policies)	12 Months Ended
	May 31, 2024
Policies
Inventory:	Inventory: Inventory is stated at the lower of average cost or net realizable value. Average cost approximates first-in, first-out cost.

1. Summary of Significant Ac_10

1. Summary of Significant Accounting Policies: Property and Equipment (Policies)	12 Months Ended
	May 31, 2024
Policies
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.

1. Summary of Significant Ac_11

1. Summary of Significant Accounting Policies: Cash Value of Life Insurance (Policies)	12 Months Ended
	May 31, 2024
Policies
Cash Value of Life Insurance:	Cash Value of Life Insurance: Cash value of life insurance is stated at the surrender value of the contracts.

1. Summary of Significant Ac_12

1. Summary of Significant Accounting Policies: Revenue Recognition (Policies)	12 Months Ended
	May 31, 2024
Policies
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, 2024, 59% of revenue was recorded for contracts in which revenue was recognized over time while 41% was recognized at a point in time. In the year ended May 31, 2023, 61% of revenue was recorded for contracts in which revenue was recognized over time while 39% was recognized at a point in time. 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, 2024 and 2023, 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.

1. Summary of Significant Ac_13

1. Summary of Significant Accounting Policies: Shipping and Handling Costs (Policies)	12 Months Ended
	May 31, 2024
Policies
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 $190,939 and $366,763 for the years ended May 31, 2024 and 2023. Shipping and handling activities that occur after the customer has obtained control of the product are considered fulfillment activities, not performance obligations.

1. Summary of Significant Ac_14

1. Summary of Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	May 31, 2024
Policies
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, 2024 and 2023. The Company recorded no interest expense or penalties in its consolidated statements of income during the years ended May 31, 2024 and 2023. The Company believes it is no longer subject to examination by federal and state taxing authorities for years prior to May 31, 2021.

1. Summary of Significant Ac_15

1. Summary of Significant Accounting Policies: Sales Taxes (Policies)	12 Months Ended
	May 31, 2024
Policies
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.

1. Summary of Significant Ac_16

1. Summary of Significant Accounting Policies: Stock-Based Compensation (Policies)	12 Months Ended
	May 31, 2024
Policies
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, 2024 and 2023 was $1,047,252 and $417,253.

1. Summary of Significant Ac_17

1. Summary of Significant Accounting Policies: New Accounting Standards (Policies)	12 Months Ended
	May 31, 2024
Policies
New Accounting Standards:	New Accounting Standards: Any recently issued Accounting Standards Codification (ASC) guidance has either been implemented or is not significant to the Company.

1. Summary of Significant Ac_18

1. Summary of Significant Accounting Policies: Reclassifications (Policies)	12 Months Ended
	May 31, 2024
Policies
Reclassifications:	Reclassifications: The 2023 financial statements have been reclassified to conform with the presentation adopted for 2024.

2. Accounts and Other Receiva_2

2. Accounts and Other Receivables: Accounts and Other Receivables (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Accounts and Other Receivables	2024 2023 Customers $ 5,241,874 $ 5,558,990 Customers – retention - 23,980 5,241,874 5,582,970 Less allowance for doubtful accounts 29,466 29,466 $ 5,212,408 $ 5,553,504

3. Inventory_ Schedule of Inven

3. Inventory: Schedule of Inventory (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Inventory	2024 2023 Raw materials $ 886,947 $ 673,453 Work-in-process 6,412,497 5,005,416 Finished goods 271,608 330,435 7,571,052 6,009,304 Less allowance for obsolescence 59,000 68,000 $ 7,512,052 $ 5,941,304

4. Costs and Estimated Earnin_2

4. Costs and Estimated Earnings on Uncompleted Contracts: Schedule of Costs incurred on uncompleted contracts and Estimated earnings (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Costs incurred on uncompleted contracts and Estimated earnings	2024 2023 Costs incurred on uncompleted contracts $ 10,576,401 $ 5,349,111 Estimated earnings 10,459,240 4,850,889 21,035,641 10,200,000 Less billings to date 22,280,350 8,068,288 $ (1,244,709 ) $ 2,131,712

4. Costs and Estimated Earnin_3

4. Costs and Estimated Earnings on Uncompleted Contracts: Schedule of Amounts are included in the accompanying balance sheets (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Amounts are included in the accompanying balance sheets	2024 2023 Costs and estimated earnings in excess of billings $ 4,356,565 $ 4,124,182 Billings in excess of costs and estimated earnings 5,601,274 1,992,470 $ (1,244,709 ) $ 2,131,712

4. Costs and Estimated Earnin_4

4. Costs and Estimated Earnings on Uncompleted Contracts: Schdule of Status of Projects in progress (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schdule of Status of Projects in progress	2024 2023 Number of Projects in progress 19 22 Aggregate percent complete 53% 33% Aggregate amount remaining $17,405,603 $18,061,484 Percentage of total value invoiced to customer 56% 29%

5. Maintenance and Other Inve_2

5. Maintenance and Other Inventory: Schedule of Maintenance and Other Inventory (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Maintenance and Other Inventory	2024 2023 Maintenance and other inventory $ 2,416,748 $ 2,236,106 Less allowance for obsolescence 836,919 1,232,966 $ 1,579,829 $ 1,003,140

6. Property and Equipment_ Sche

6. Property and Equipment: Schedule of Property, Plant and Equipment (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Property, Plant and Equipment	2024 2023 Land $ 195,220 $ 195,220 Buildings and improvements 10,054,459 10,033,399 Machinery and equipment 15,956,076 15,278,928 Office furniture and equipment 3,113,921 2,840,980 Autos and trucks 24,818 24,818 Land improvements 662,168 483,929 30,006,662 28,857,274 Less accumulated depreciation 18,825,729 17,135,490 $ 11,180,933 $ 11,721,784

8. Accrued Expenses_ Schedule o

8. Accrued Expenses: Schedule of Accrued Expenses (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Accrued Expenses	2024 2023 Customer deposits $ 285,689 $ 367,902 Personnel costs 3,763,777 3,023,501 Other 614,997 686,919 $ 4,664,463 $ 4,078,322

9. Sales_ Disaggregation of Sal

9. Sales: Disaggregation of Sales Revenue (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Disaggregation of Sales Revenue	202 4 2023 Structural $ 14,406,863 $ 20,642,326 Aerospace / Defense 26,675,321 15,568,695 Industrial 3,500,623 3,988,333 $ 44,582,807 $ 40,199,354

10. Income Taxes_ Schedule of C

10. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)	2024 2023 Current tax provision: Federal $ 2,365,000 $ 1,710,000 State 1,000 2,000 2,366,000 1,712,000 Deferred tax provision (benefit): Federal (444,000 ) (494,000 ) State - - (444,000 ) (494,000 ) $ 1,922,000 $ 1,218,000

10. Income Taxes_ Schedule of E

10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	2024 2023 Computed tax provision at the expected statutory rate $ 2,293,400 $ 1,576,100 State income tax - net of Federal tax benefit - (1,600) Tax effect of permanent differences: Research tax credits (407,675) (283,600) Foreign-derived intangible income deduction (142,100) (66,900) Stock option costs 48,500 - Other permanent differences 2,800 900 Other 127,075 (6,900) $ 1,922,000 $ 1,218,000 Effective income tax rate 17.6% 16.2%

10. Income Taxes_ Schedule of D

10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	2024 2023 Deferred tax assets: Allowance for doubtful receivables $ 6,200 $ 6,200 Tax inventory adjustment 57,300 84,300 Allowance for obsolete inventory 188,100 273,200 Accrued vacation 163,000 136,600 Accrued commissions - 9,800 Warranty reserve 100,700 62,700 R&D tax credit - - R&D capitalization 1,479,800 678,500 Stock options issued for services 181,200 331,300 2,176,300 1,582,600 Deferred tax liabilities: Excess tax depreciation (1,163,685) (1,013,985) Net deferred tax assets $ 1,012,615 $ 568,615

11. Earnings Per Common Share_

11. Earnings Per Common Share: Schedule of Earnings Per Common Share (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Earnings Per Common Share	2024 2023 Average common shares outstanding 3,353,077 3,506,474 Common shares issuable under stock option plans 135,711 45,020 Average common shares outstanding assuming dilution 3,488,788 3,551,494

13. Stock Option Plans_ Schedul

13. Stock Option Plans: Schedule of Fair Value Assumptions (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Fair Value Assumptions	2024 2023 Risk-free interest rate 4.00% 2.45% Expected life in years 4.3 4.2 Expected volatility 37% 33% Expected dividend yield 0% 0%

13. Stock Option Plans_ Sched_2

13. Stock Option Plans: Schedule of Stock Options Activity (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Stock Options Activity	Shares Weighted Average Exercise Price Intrinsic Value Outstanding - May 31, 2022 283,000 $ 11.43 $ 28,248 Options granted 85,000 $ 15.75 Less: options exercised 30,500 $ 9.57 Less: options expired 4,500 - Outstanding - May 31, 2023 333,000 $ 12.70 $ 2,016,961 Options granted 85,000 $ 34.04 Less: options exercised 76,750 $ 12.54 Less: options expired 750 - Outstanding - May 31, 2024 340,500 $ 18.07 $ 11,185,815

13. Stock Option Plans_ Share-B

13. Stock Option Plans: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable	The following table summarizes information about stock options outstanding at May 31, 2024: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 9.01-$10.00 55,000 7.0 $ 9.67 $10.01-$11.00 15,250 4.7 $10.21 $11.01-$12.00 106,250 6.5 $11.72 $12.01-$13.00 19,000 1.5 $12.36 $13.01-$14.00 10,000 2.9 $13.80 $16.01-$17.00 10,000 1.9 $16.40 $19.01-$20.00 47,500 8.3 $19.89 $20.01-$21.00 34,500 9.4 $20.78 $46.01-$47.00 43,000 9.9 $46.99 $ 9.01-$47.00 340,500 6.9 $18.07 The following table summarizes information about stock options outstanding at May 31, 2023: Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Years of Contractual Life Weighted Average Exercise Price $ 8.01-$ 9.00 13,000 0.9 $ 8.87 $ 9.01-$10.00 55,000 8.0 $ 9.67 $10.01-$11.00 23,500 6.2 $10.16 $11.01-$12.00 140,000 7.5 $11.66 $12.01-$13.00 28,000 2.8 $12.39 $13.01-$14.00 10,000 3.9 $13.80 $16.01-$17.00 10,000 2.9 $16.40 $19.01-$20.00 53,500 8.6 $19.82 $ 8.01-$20.00 333,000 6.8 $12.70

16. Cash Flows Information_ Sch

16. Cash Flows Information: Schedule of Cash Flow, Supplemental Disclosures (Tables)	12 Months Ended
	May 31, 2024
Tables/Schedules
Schedule of Cash Flow, Supplemental Disclosures	2024 2023 Interest paid None None Income taxes paid $2,010,000 $1,705,000

1. Summary of Significant Ac_19

1. Summary of Significant Accounting Policies: Stock-Based Compensation (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Stock options issued for services	$ 1,047,252	$ 417,253

2. Accounts and Other Receiva_3

2. Accounts and Other Receivables: Accounts and Other Receivables (Details) - USD ($)		May 31, 2024	May 31, 2023
Accounts Receivable, before Allowance for Credit Loss, Current		$ 5,241,874	$ 5,582,970
Less allowance for doubtful accounts		29,466	29,466
Accounts and other receivables, net (Note 2)	[1]	5,212,408	5,553,504
Customers
Accounts Receivable, before Allowance for Credit Loss, Current		5,241,874	5,558,990
Customers - retention
Accounts Receivable, before Allowance for Credit Loss, Current		$ 0	$ 23,980
[1]Note 2

3. Inventory_ Schedule of Inv_2

3. Inventory: Schedule of Inventory (Details) - USD ($)	May 31, 2024	May 31, 2023
Inventory, Gross	$ 7,571,052	$ 6,009,304
Less allowance for obsolescence	59,000	68,000
Inventory, Net	7,512,052	5,941,304
Raw Materials
Inventory, Gross	886,947	673,453
Work-in-process
Inventory, Gross	6,412,497	5,005,416
Finished goods
Inventory, Gross	$ 271,608	$ 330,435

4. Costs and Estimated Earnin_5

4. Costs and Estimated Earnings on Uncompleted Contracts: Schedule of Costs incurred on uncompleted contracts and Estimated earnings (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Costs incurred on uncompleted contracts	$ 10,576,401	$ 5,349,111
Costs incurred on uncompleted contracts, Estimated earnings	10,459,240	4,850,889
Costs incurred on uncompleted contracts, Gross	21,035,641	10,200,000
Costs incurred on uncompleted contracts, Billings to date	22,280,350	8,068,288
Costs incurred on uncompleted contracts, Net	$ (1,244,709)	$ 2,131,712

4. Costs and Estimated Earnin_6

4. Costs and Estimated Earnings on Uncompleted Contracts: Schedule of Amounts are included in the accompanying balance sheets (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Costs and estimated earnings in excess of billings	$ 4,356,565	$ 4,124,182
Billings in excess of costs and estimated earnings	5,601,274	1,992,470
Costs incurred on uncompleted contracts, Net	$ (1,244,709)	$ 2,131,712

4. Costs and Estimated Earnin_7

4. Costs and Estimated Earnings on Uncompleted Contracts: Schdule of Status of Projects in progress (Details)	May 31, 2024 USD ($)	May 31, 2023 USD ($)
Details
Number of Projects in progress	19	22
Aggregate percent complete	53%	33%
Aggregate amount remaining	$ 17,405,603	$ 18,061,484
Percentage of total value invoiced to customer	56%	29%

4. Costs and Estimated Earnin_8

4. Costs and Estimated Earnings on Uncompleted Contracts (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Revenues Recognized For amounts included in billings in excess of costs and estimated earnings	$ 1,992,000	$ 1,123,000

5. Maintenance and Other Inve_3

5. Maintenance and Other Inventory: Schedule of Maintenance and Other Inventory (Details) - USD ($)	May 31, 2024	May 31, 2023
Details
Maintenance and other inventory, Gross	$ 2,416,748	$ 2,236,106
Maintenance and other inventory, allowance for obsolescence	836,919	1,232,966
Maintenance and other inventory, Net	$ 1,579,829	$ 1,003,140

5. Maintenance and Other Inve_4

5. Maintenance and Other Inventory (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Inventory disposed of	$ 791,000	$ 322,000
Provision for potential inventory obsolescence	$ 386,000	$ 295,000

6. Property and Equipment_ Sc_2

6. Property and Equipment: Schedule of Property, Plant and Equipment (Details) - USD ($)		May 31, 2024	May 31, 2023
Property, Plant and Equipment, Gross		$ 30,006,662	$ 28,857,274
Less accumulated depreciation		18,825,729	17,135,490
Property and equipment, net (Note 6)	[1]	11,180,933	11,721,784
Land
Property, Plant and Equipment, Gross		195,220	195,220
Building Improvements
Property, Plant and Equipment, Gross		10,054,459	10,033,399
Machinery and Equipment
Property, Plant and Equipment, Gross		15,956,076	15,278,928
Furniture and Fixtures
Property, Plant and Equipment, Gross		3,113,921	2,840,980
Vehicles
Property, Plant and Equipment, Gross		24,818	24,818
Land Improvements
Property, Plant and Equipment, Gross		$ 662,168	$ 483,929
[1]Note 6

6. Property and Equipment (Deta

6. Property and Equipment (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Depreciation, Depletion and Amortization	$ 1,690,239	$ 1,472,455
Commitments to make capital expenditures	$ 1,360,000

7. Short-Term Borrowings (Detai

7. Short-Term Borrowings (Details) - USD ($)	12 Months Ended
	May 31, 2023	May 31, 2024
Details
Long-Term Line of Credit		$ 10,000,000
Line of Credit Facility, Average Outstanding Amount	$ 0
Outstanding checks	$ 13,873	$ 372,347

8. Accrued Expenses_ Schedule_2

8. Accrued Expenses: Schedule of Accrued Expenses (Details) - USD ($)		May 31, 2024	May 31, 2023
Accrued expenses (Note 8)	[1]	$ 4,664,463	$ 4,078,322
Customer deposits
Accrued expenses (Note 8)		285,689	367,902
Personnel costs
Accrued expenses (Note 8)		3,763,777	3,023,501
Other
Accrued expenses (Note 8)		$ 614,997	$ 686,919
[1]Note 8

9. Sales_ Disaggregation of S_2

9. Sales: Disaggregation of Sales Revenue (Details) - USD ($)		12 Months Ended
		May 31, 2024	May 31, 2023
Sales, net (Note 9)	[1]	$ 44,582,807	$ 40,199,354
Structural
Sales, net (Note 9)		14,406,863	20,642,326
Aerospace / Defense
Sales, net (Note 9)		26,675,321	15,568,695
Industrial
Sales, net (Note 9)		$ 3,500,623	$ 3,988,333
[1]Note 9

10. Income Taxes_ Schedule of_2

10. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)		12 Months Ended
		May 31, 2024	May 31, 2023
Current tax provision
Federal		$ 2,365,000	$ 1,710,000
State		1,000	2,000
Current Federal, State and Local, Tax Expense (Benefit)		2,366,000	1,712,000
Deferred tax provision (benefit)
Federal		(444,000)	(494,000)
State		0	0
Deferred Federal, State and Local, Tax Expense (Benefit)		(444,000)	(494,000)
Provision for income taxes (Note 10)	[1]	$ 1,922,000	$ 1,218,000
[1]Note 10Note 10

10. Income Taxes_ Schedule of_3

10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)		12 Months Ended
		May 31, 2024	May 31, 2023
Details
Computed tax provision at the expected statutory rate		$ 2,293,400	$ 1,576,100
State income tax - net of Federal tax benefit		0	(1,600)
Tax effect of permanent differences
Research tax credits		(407,675)	(283,600)
Foreign-derived intangible income deduction		(142,100)	(66,900)
Stock option costs		48,500	0
Other permanent differences		2,800	900
Other Adjustments		127,075	(6,900)
Provision for income taxes (Note 10)	[1]	$ 1,922,000	$ 1,218,000
Effective income tax rate		17.60%	16.20%
[1]Note 10Note 10

10. Income Taxes_ Schedule of_4

10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	May 31, 2024	May 31, 2023
Deferred tax assets
Allowance for doubtful receivables	$ 6,200	$ 6,200
Tax inventory adjustment	57,300	84,300
Allowance for obsolete inventory	188,100	273,200
Accrued vacation	163,000	136,600
Accrued commissions	0	9,800
Warranty reserve	100,700	62,700
R&D tax credit	0	0
R&D capitalization	1,479,800	678,500
Stock options issued for services	181,200	331,300
Deferred Tax Assets, Gross	2,176,300	1,582,600
Deferred tax liabilities
Excess tax depreciation	(1,163,685)	(1,013,985)
Net deferred tax assets	$ 1,012,615	$ 568,615

10. Income Taxes (Details)

10. Income Taxes (Details) - USD ($)	May 31, 2024	May 31, 2023
Details
Deferred Tax Assets, Gross	$ 2,176,300	$ 1,582,600

11. Earnings Per Common Share_2

11. Earnings Per Common Share: Schedule of Earnings Per Common Share (Details) - shares	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Average common shares outstanding	3,353,077	3,506,474
Common shares issuable under stock option plans	135,711	45,020
Average common shares outstanding assuming dilution	3,488,788	3,551,494

12. Employee Stock Purchase P_2

12. Employee Stock Purchase Plan (Details) - shares	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Common shares issued to employees	372	922
Shares reserved for further issue	215,993

13. Stock Option Plans_ Sched_3

13. Stock Option Plans: Schedule of Fair Value Assumptions (Details)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Risk-free interest rate	4%	2.45%
Expected life in years	4 years 3 months 18 days	4 years 2 months 12 days
Expected volatility	37%	33%
Expected dividend yield	0%	0%

13. Stock Option Plans_ Sched_4

13. Stock Option Plans: Schedule of Stock Options Activity (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Beginning Balance	333,000	283,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 12.7	$ 11.43
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value	$ 2,016,961	$ 28,248
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	85,000	85,000
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 34.04	$ 15.75
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period	76,750	30,500
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 12.54	$ 9.57
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Expirations in Period	750	4,500
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 0	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance	340,500	333,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 18.07	$ 12.7
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value	$ 11,185,815	$ 2,016,961

13. Stock Option Plans_ Share_2

13. Stock Option Plans: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details) - $ / shares	12 Months Ended
	May 31, 2024	May 31, 2023
$ 9.01-$10.00
Number of Options	55,000	55,000
Weighted Average Remaining Years of Contractual Life	7 years	8 years
Weighted Average Exercise Price	$ 9.67	$ 9.67
$10.01-$11.00
Number of Options	15,250	23,500
Weighted Average Remaining Years of Contractual Life	4 years 8 months 12 days	6 years 2 months 12 days
Weighted Average Exercise Price	$ 10.21	$ 10.16
$11.01-$12.00
Number of Options	106,250	140,000
Weighted Average Remaining Years of Contractual Life	6 years 6 months	7 years 6 months
Weighted Average Exercise Price	$ 11.72	$ 11.66
$12.01-$13.00
Number of Options	19,000	28,000
Weighted Average Remaining Years of Contractual Life	1 year 6 months	2 years 9 months 18 days
Weighted Average Exercise Price	$ 12.36	$ 12.39
$13.01-$14.00
Number of Options	10,000	10,000
Weighted Average Remaining Years of Contractual Life	2 years 10 months 24 days	3 years 10 months 24 days
Weighted Average Exercise Price	$ 13.8	$ 13.8
$16.01-$17.00
Number of Options	10,000	10,000
Weighted Average Remaining Years of Contractual Life	1 year 10 months 24 days	2 years 10 months 24 days
Weighted Average Exercise Price	$ 16.4	$ 16.4
$19.01-$20.00
Number of Options	47,500	53,500
Weighted Average Remaining Years of Contractual Life	8 years 3 months 18 days	8 years 7 months 6 days
Weighted Average Exercise Price	$ 19.89	$ 19.82
$20.01-$21.00
Number of Options	34,500
Weighted Average Remaining Years of Contractual Life	9 years 4 months 24 days
Weighted Average Exercise Price	$ 20.78
$46.01-$47.00
Number of Options	43,000
Weighted Average Remaining Years of Contractual Life	9 years 10 months 24 days
Weighted Average Exercise Price	$ 46.99
$ 9.01-$47.00
Number of Options	340,500
Weighted Average Remaining Years of Contractual Life	6 years 10 months 24 days
Weighted Average Exercise Price	$ 18.07
$ 8.01-$ 9.00
Number of Options		13,000
Weighted Average Remaining Years of Contractual Life		10 months 24 days
Weighted Average Exercise Price		$ 8.87
$ 8.01-$20.00
Number of Options		333,000
Weighted Average Remaining Years of Contractual Life		6 years 9 months 18 days
Weighted Average Exercise Price		$ 12.7

14. Retirement Plan (Details)

14. Retirement Plan (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Pension and Other Postretirement Benefits Cost (Reversal of Cost)	$ 431,720	$ 371,881

16. Cash Flows Information_ S_2

16. Cash Flows Information: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($)	12 Months Ended
	May 31, 2024	May 31, 2023
Details
Interest paid	$ 0	$ 0
Income taxes paid	$ 2,010,000	$ 1,705,000

17. Legal Proceedings (Details)

17. Legal Proceedings (Details)	12 Months Ended
	May 31, 2024
Details
Loss Contingency, Parties Jointly and Severally Liable in Litigation	The Company has been named as a third-party defendant
Loss Contingency, Name of Plaintiff	Board of Managers of the 432 Park Condominium, et al.
Loss Contingency, Lawsuit Filing Date	Sep. 23, 2021
Loss Contingency, Allegations	design defects to the residential and commercial units at the Building