Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 22, 2017 | Mar. 31, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TECHNICAL COMMUNICATIONS CORP | ||
Entity Central Index Key | 96,699 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 3,767,922 | ||
Trading Symbol | TCCO | ||
Entity Common Stock, Shares Outstanding | 1,839,877 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,283,673 | $ 2,589,036 |
Restricted cash | 12,930 | 27,592 |
Marketable securities: | ||
Held to maturity securities | 360,253 | 362,170 |
Accounts receivable - trade | 730,177 | 111,849 |
Inventories, net | 1,358,344 | 1,643,922 |
Other current assets | 135,693 | 214,047 |
Total current assets | 3,881,070 | 4,948,616 |
Marketable securities: | ||
Held to maturity securities | 0 | 373,668 |
Equipment and leasehold improvements | 4,534,839 | 4,531,264 |
Less accumulated depreciation and amortization | (4,481,085) | (4,382,335) |
Equipment and leasehold improvements, net | 53,754 | 148,929 |
Total Assets | 3,934,824 | 5,471,213 |
Current liabilities: | ||
Accounts payable | 109,224 | 119,087 |
Accrued liabilities: | ||
Compensation and related expenses | 215,984 | 238,144 |
Customer deposits | 53,886 | 118,983 |
Other current liabilities | 55,376 | 80,635 |
Total current liabilities | 434,470 | 556,849 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common stock - par value $0.10 per share; 7,000,000 shares authorized, 1,839,877 issued and outstanding at September 30, 2017 and October 1, 2016 | 183,988 | 183,988 |
Additional paid-in capital | 4,139,002 | 4,124,006 |
(Accumulated deficit)/Retained earnings | (822,636) | 606,370 |
Total stockholders' equity | 3,500,354 | 4,914,364 |
Total Liabilities and Stockholders’ Equity | $ 3,934,824 | $ 5,471,213 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Oct. 01, 2016 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 7,000,000 | 7,000,000 |
Common stock, shares issued | 1,839,877 | 1,839,877 |
Common stock, shares outstanding | 1,839,877 | 1,839,877 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Net sales | $ 4,209,127 | $ 2,522,934 |
Cost of sales | 1,917,890 | 2,013,653 |
Gross profit | 2,291,237 | 509,281 |
Operating expenses: | ||
Selling, general and administrative | 2,144,532 | 2,670,622 |
Product development | 1,584,210 | 827,987 |
Total operating expenses | 3,728,742 | 3,498,609 |
Operating loss | (1,437,505) | (2,989,328) |
Other income | ||
Gain on sale of cost method investment | 0 | 462,283 |
Investment income | 8,499 | 11,293 |
Total other income | 8,499 | 473,576 |
Loss before benefit for income taxes | (1,429,006) | (2,515,752) |
Benefit for income taxes | 0 | (43,464) |
Net loss | $ (1,429,006) | $ (2,472,288) |
Net loss per common share | ||
Basic | $ (0.78) | $ (1.34) |
Diluted | $ (0.78) | $ (1.34) |
Weighted average shares | ||
Basic | 1,839,877 | 1,839,877 |
Diluted | 1,839,877 | 1,839,877 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Operating activities: | ||
Net loss | $ (1,429,006) | $ (2,472,288) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 98,750 | 158,838 |
Stock-based compensation | 14,996 | 13,910 |
Adjustments to reduce inventory to net realizable value | 461,003 | 212,753 |
Amortization of premium on held to maturity securities | 25,585 | 33,677 |
Gain on sale of cost method investment | 0 | (462,283) |
Changes in current assets and current liabilities: | ||
Accounts receivable | (618,328) | 1,679,007 |
Inventories | (175,425) | (25,711) |
Other current assets | 2,537 | (5,438) |
Customer deposits | (65,097) | 77,763 |
Accounts payable and accrued liabilities | (57,282) | (163,935) |
Cash used in operating activities | (1,742,267) | (953,707) |
Investing activities: | ||
Additions to equipment and leasehold improvements | (3,575) | (31,000) |
Decrease in restricted cash | 14,662 | 335,766 |
Proceeds from maturities of marketable securities | 350,000 | 300,000 |
Proceeds from sale of cost method investment | 75,817 | 661,466 |
Cash provided by investing activities | 436,904 | 1,266,232 |
Net (decrease) increase in cash and cash equivalents | (1,305,363) | 312,525 |
Cash and cash equivalents at beginning of year | 2,589,036 | 2,276,511 |
Cash and cash equivalents at end of year | 1,283,673 | 2,589,036 |
Supplemental disclosures: | ||
Income taxes paid | 856 | 1,856 |
Escrow deposit held on sale of cost method investment | 0 | 75,817 |
Transfer of inventory to equipment and leasehold improvements | $ 0 | $ 19,920 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | (Accumulated deficit) / Retained earnings [Member] |
Total stockholders’ equity | $ 183,988 | $ 4,110,096 | $ 3,078,658 | |
Beginning balance at Oct. 01, 2015 | $ 183,988 | 4,110,096 | 3,078,658 | |
Beginning balance, shares at Oct. 01, 2015 | 1,839,877 | |||
Stock-based compensation | 13,910 | |||
Net loss | $ (2,472,288) | (2,472,288) | ||
Ending balance at Oct. 01, 2016 | 4,914,364 | $ 183,988 | 4,124,006 | 606,370 |
Ending balance, shares at Oct. 01, 2016 | 1,839,877 | |||
Total stockholders’ equity | 4,914,364 | $ 183,988 | 4,124,006 | 606,370 |
Total stockholders’ equity | 4,914,364 | 183,988 | 4,124,006 | 606,370 |
Stock-based compensation | 14,996 | |||
Net loss | (1,429,006) | (1,429,006) | ||
Ending balance at Sep. 30, 2017 | 3,500,354 | $ 183,988 | 4,139,002 | (822,636) |
Ending balance, shares at Sep. 30, 2017 | 1,839,877 | |||
Total stockholders’ equity | 3,500,354 | $ 183,988 | 4,124,006 | 606,370 |
Total stockholders’ equity | $ 3,500,354 | $ 183,988 | $ 4,139,002 | $ (822,636) |
Company Operations
Company Operations | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Operations | (1) Company Operations Technical Communications Corporation (“TCC”) was incorporated in Massachusetts in 1961; its wholly-owned subsidiary, TCC Investment Corp., was organized in that jurisdiction in 1982. Technical Communications Corporation and TCC Investment Corp. are collectively referred to as the “Company”. The Company’s business consists of only one industry segment, which is the design, development, manufacture, distribution, marketing and sale of communications security devices, systems and services. The secure communications solutions provided by TCC protect vital information transmitted over a wide range of data, video, fax and voice networks. TCC’s products have been sold into over 115 countries and are in service with governments, military agencies, telecommunications carriers, financial institutions and multinational corporations. Liquidity and Ability to Continue as a Going Concern The Company has suffered recurring losses from operations and had an accumulated deficit of $ at In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concer n within one year from the issuance date of the consolidated financial statements. The consolidated financial statements do not include any adjustments to reflect the uncertainty about the Company’s ability to continue as a going concern . We anticipate that our principal sources of liquidity will only be sufficient to fund our activities and debt obligations needs through September 30, 2018. In order to have sufficient cash to fund our operations beyond September 30, 2018, we will need to secure new customer contracts, raise additional equity or debt capital or reduce expenses including payroll and payroll - In order to have sufficient capital resources to fund operations the Company has been working diligently to secure several large orders with new and existing customers. In addition we are also pursuing raising capital through equity or debt arrangements. Although we believe our ability to secure such new business or raise new capital is likely we cannot provide assurances we will be able to do so. Should we be unsuccessful in these efforts, we would then be forced to implement |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies We follow accounting standards set by the Financial Accounting Standards Board, commonly referred to as the FASB. The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification TM Principles of Consolidation The accompanying consolidated financial statements include the accounts of TCC and its wholly-owned subsidiary, TCC Investment Corp., a Massachusetts corporation. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant judgments and estimates include those related to revenue recognition, receivable reserves, inventory reserves, impairment of long-lived assets, income taxes, fair value and stock-based compensation. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include demand deposits at banks and other investments (including mutual funds) readily convertible into cash. Cash equivalents are stated at cost, which approximates market value. At September 30, 2017 and October 1, 2016, the Company had restrictions on the use of certain cash, which was used as collateral to secure outstanding letters of credit totaling $12,930 and $27,592, respectively. Accounts Receivable Accounts receivable are reduced by an allowance for amounts that management believes may become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. When the financial condition of our customers deteriorate, resulting in an impairment of their ability to make payments, additional allowances are recorded. In addition, if the Company becomes aware of a customer’s inability to meet its financial obligations to TCC, a specific write-off is recorded in that amount. Inventories The Company values its inventory at the lower of actual cost (based on the first-in, first-out method) to purchase and/or manufacture or the current estimated market value (based on estimated selling prices, less the cost to sell) of the inventory. The Company periodically reviews inventory quantities on hand and records a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, as well as historical usage. The Company evaluates the carrying value of inventory on a quarterly basis to determine if the carrying value is recoverable at estimated selling prices. To the extent that estimated selling prices are less than the associated carrying values, inventory carrying values are written down. In addition, the Company makes judgments as to future demand requirements and compares those with the current or committed inventory levels. Reserves are established for inventory levels that exceed the Company’s judgement of future demand. It is possible that additional reserves above those already established may be required in the future if market conditions for the Company’s products should deteriorate. Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the lesser of the estimated useful life of the asset or the applicable lease term. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts, and any resulting gain or loss is recognized in operations for the period. The costs of maintenance and repairs are charged to operations as incurred; significant renewals and betterments are capitalized. Long-lived Assets The Company’s only long-lived assets are equipment and leasehold improvements. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These events include a significant decrease in the market price of a long-lived asset, a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition, a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset, a current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset, among other items. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by such asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Although an indicator of impairment of our long-lived assets did exist at September 30, 2017 and October 1, 2016, we determined that no impairment charge was required as an estimate of our future undiscounted cash flows was sufficient to recover the assets. Revenue Recognition The Company recognizes product revenue when there is persuasive evidence of an arrangement, the fee is fixed or determinable, delivery of the product and passage of title to the customer has occurred and the Company has determined that collection of the fee is probable. Title to the product generally passes upon shipment of the product, as the products are shipped freight on board shipping point, except for certain foreign shipments where title passes upon entry of the product into the first port in the buyer’s country. If the product requires installation to be performed by TCC or other acceptance criteria exist, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. The Company provides for a warranty reserve at the time the product revenue is recognized. The Company performs funded research and development and technology development for commercial companies and government agencies under both cost reimbursement and fixed-price contracts. Cost reimbursement contracts provide for the reimbursement of allowable costs and, in some situations, the payment of a fee. These contracts may contain incentive clauses providing for increases or decreases in the fee depending on how actual costs compare with a budget. Revenue from reimbursement contracts is recognized as services are performed. On fixed-price contracts that are expected to exceed one year in duration, revenue is recognized pursuant to the proportional performance method based upon the proportion of actual costs incurred to the total estimated costs for the contract. In each type of contract, the Company receives periodic progress payments or payments upon reaching interim milestones. All payments to the Company for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency, the U.S. Government Accountability Office and other agencies. Adjustments are recognized in the period made. There have been no audits in recent years and the Company believes the result of such audits, should they occur, would not have a material adverse effect on its financial position or results of operations. If the current estimates of total contract revenue and contract costs for a product development contract indicate a loss, a provision for the entire loss on the contract is recorded. Any losses incurred in performing funded research and development projects are recognized as funded research and development expenses. Cost of product revenue includes material, labor and overhead. Costs incurred in connection with funded research and development are included in cost of sales. Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of sales; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses. Product development costs consist primarily of costs associated with personnel, outside contractor and engineering services, supplies and materials. Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the employee’s requisite service period, generally the vesting period of the award. The related excess tax benefit received upon the exercise of stock options, if any, is reflected in the Company’s statement of cash flows as a financing activity rather than an operating activity. There were no excess tax benefits for the fiscal years ended September 30, 2017 and October 1, 2016. The Company uses the Black-Scholes option pricing model as the method for determining the estimated fair value of its stock awards. The Black-Scholes method of valuation requires several assumptions: (1) the expected term of the stock award, (2) the expected future stock price volatility over the expected term, (3) a risk-free interest rate and (4) the expected dividend rate. The expected term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock and the risk free interest rate is based on the U.S. Treasury Note rate. The Company utilizes a forfeiture rate based on an analysis of its actual experience. The forfeiture rate is not material to the calculation of stock-based compensation. The fair value of options at date of grant was estimated with the following assumptions: September 30, 2017 October 1, 2016 Assumptions: Option life 6.5 years 6.5 years Risk-free interest rate 2.0 % 1.4 % Stock volatility 72 % 60 % Dividend yield 0 % 0 % There were 14,000 options granted during each of the years ended September 30, 2017 and October 1, 2016. The weighted average grant date fair value of options granted during the years ended September 30, 2017 and October 1, 2016 was $1.66 and $1.67, respectively. The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the years ended September 30, 2017 and October 1, 2016: 2017 2016 Selling, general and administrative $ 13,910 $ 11,549 Product development 1,086 2,361 Total stock-based compensation expense before taxes $ 14,996 $ 13,910 A summary of the status of the Company’s nonvested options as of September 30, 2017 and changes during the year ended September 30, 2017 is presented below: Shares Weighted Average Grant Date Fair Value Nonvested options at October 1, 2016 26,700 $ 2.02 Grants 14,000 1.66 Vested (5,900 ) 2.05 Cancellations/forfeitures (600 ) 2.98 Nonvested options at September 30, 2017 34,200 $ 1.85 As of September 30, 2017, there was $54,280 of unrecognized compensation cost related to options outstanding. The unrecognized compensation cost will be recognized as the options vest. The weighted average period over which the stock-based compensation cost is expected to be recognized is 3.59 years. The Technical Communications Corporation 2005 Non-Statutory Stock Option Plan and 2010 Equity Incentive Plan were outstanding at September 30, 2017. There are an aggregate of 600,000 shares authorized for issuance under these plans, of which options to purchase 246,281 shares were outstanding at September 30, 2017. Vesting periods are at the discretion of the Board of Directors and typically range between zero and five years. Options under these plans are granted with an exercise price equal to fair value at time of grant and have a term of ten years from the date of grant. As of September 30, 2017, there were 240,719 shares available for grant under the 2010 Equity Incentive Plan. The 2005 Non-Statutory Stock Option Plan has expired and options are no longer available for grant under such plan. The following tables summarize stock option activity during fiscal years 2016 and 2017: Options Outstanding Number of Shares Weighted Average Weighted Average Unvested Vested Total Exercise Price Contractual Life Outstanding, October 3, 2015 18,060 236,921 254,981 $ 8.49 4.83 years Grants 14,000 - 14,000 2.90 Vested (4,640 ) 4,640 - 5.89 Exercises - - - - Cancellations/forfeitures (720 ) (24,580 ) (25,300 ) 3.46 Outstanding, October 1, 2016 26,700 216,981 243,681 $ 8.69 4.57 years Grants 14,000 - 14,000 2.50 Vested (5,900 ) 5,900 - 3.61 Exercises - - - - Cancellations/forfeitures (600 ) (10,800 ) (11,400 ) 8.24 Outstanding, September 30, 2017 34,200 212,081 246,281 $ 8.36 3.95 years Information related to the stock options vested or expected to vest as of September 30, 2017 is as follows: Range of Exercise Prices Number of Weighted- Weighted- Exercisable Exercisable $2.01 - $3.00 28,000 8.87 $ 2.70 2,800 $ 2.90 $3.01 - $5.00 40,500 4.88 4.52 32,100 4.65 $5.01 - $10.00 59,000 2.91 7.55 58,400 7.56 $10.01 - $15.00 118,781 3.00 11.40 118,781 11.40 246,281 3.95 $ 8.36 212,081 $ 9.21 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options was $14,140 as of September 30, 2017 and $0 as of October 1, 2016. There were no stock options exercised during the years ended September 30, 2017 and October 1, 2016. Nonvested common stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. Income Taxes The Company accounts for income taxes using the asset/liability method. Under the asset/liability method, deferred income taxes are recognized at current income tax rates to reflect the tax effect of temporary differences between the consolidated financial reporting basis and tax basis of assets and liabilities. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company follows the appropriate guidance relative to uncertain tax positions. This standard provides detailed guidance for the financial statement The Company’s policy is to record estimated interest and penalties related to the underpayment of income taxes as a component of its income tax provision. For the year ended October 1, 2016, the Company recorded $1,100 in interest and tax penalties. Warranty Costs The Company provides for estimated warranty costs at the time product revenue is recognized based in part upon historical experience. Fair Value of Financial Measurements In determining fair value measurements, the Company follows the provisions of FASB ASC 820, Fair Value Measurements and Disclosures Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date. Level 2 - Pricing inputs are quoted prices for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 3 - Pricing inputs are unobservable for the assets and liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company’s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds in municipalities within the United States. The Company’s available for sale securities consist of mutual funds held in money market mutual funds in a brokerage account, which are classified as cash equivalents. The fair value of these investments is based on quoted prices from recognized pricing services (e.g. Standard & Poor’s, Bloomberg, etc.), or in the case of mutual funds, at their closing published net asset value. The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the fiscal years ended September 30, 2017 and October 1, 2016, there were no transfers between levels. The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of September 30, 2017 and October 1, 2016, in accordance with the fair value hierarchy as defined above. As of September 30, 2017 and October 1, 2016, the Company did not hold any assets classified as Level 2 or Level 3. Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs Total (Level 1) (Level 2) September 30, 2017 Cash Equivalents Mutual funds: Money market funds $ 851,195 $ 851,195 - Total mutual funds 851,195 851,195 - Total assets $ 851,195 $ 851,195 $ - October 1, 2016 Cash Equivalents Mutual funds: Money market funds $ 978,746 $ 978,746 - Total mutual funds 978,746 978,746 - Total assets $ 978,746 $ 978,746 $ - There were no assets or liabilities measured at fair value on a nonrecurring basis at September 30, 2017 and October 1, 2016. Earnings per Share (EPS) The Company presents both a “basic” and a “diluted” EPS. Basic EPS is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. In computing diluted EPS, stock options that are dilutive (those that reduce earnings per share) are included in the calculation of EPS using the treasury stock method. The exercise of outstanding stock options is not included if the result would be antidilutive, such as when a net loss is reported for the period or the option exercise price is greater than the average market price for the period presented. Research and Development Research and development costs are included in product development expenses in our consolidated statements of operations. Expenditures for Company-sponsored research and development projects are expensed as incurred, and were $1,584,210 and $827,987 in 2017 and 2016, respectively. Customer-sponsored research and development projects performed under contracts are accounted for as contract costs as the work is performed and included in cost of sales; such amounts were $437,000 and $1,177,734 in fiscal years 2017 and 2016, respectively. Fiscal Year-End Policy The Company’s by-laws call for its fiscal year to end on the Saturday closest to the last day of September, unless otherwise decided by its Board of Directors. The 2017 fiscal year ended on September 30, 2017 and included 52 weeks. The 2016 fiscal year ended on October 1, 2016 and included 52 weeks. New Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers, amended by ASU 2015-14 (Topic 606), ASU 2016-10, ASU 2016-11 and ASU 2016-12 In May 2014, the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (1) remove inconsistencies and weaknesses in revenue requirements, (2) provide a more robust framework for addressing revenue issues, (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (4) provide more useful information to users of financial statements through improved disclosure requirements, and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact of this guidance and is still considering whether it will have a material effect on the Company’s consolidated financial statements. This guidance will become effective for TCC as of the beginning of our 2019 fiscal year. ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB updated U.S. GAAP to eliminate a critical gap in existing standards regarding disclosure of uncertainties about an entity’s ability to continue as a going concern. The new guidance clarifies the disclosures management must make in the organization’s financial statement footnotes when management has substantial doubt about its ability to continue as a “going concern.” The adoption of this standard requires the Company to evaluate its ability to meet its obligations as they become due for a period of one year from the date that the financial statements are issued. As a result of this requirement, management has determined that substantial doubt exists about our ability to continue as a going concern. See further discussion in Footnote 1 to the financial statements. ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In July 2015, the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This amendment is applicable for the Company beginning in the first quarter of our 2018 fiscal year, and the adoption of this standard is not expected to have a material impact on our financial statements. ASU No. 2016-02, Leases In February 2016, the FASB issued guidance with respect to leases. This ASU requires entities ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. This guidance is applicable for the Company beginning in the first quarter of our 2018 fiscal year. Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC during fiscal 2017 but such pronouncements are not believed by management to have a material impact on the Company’s present or future financial statements |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | (3) Net Loss Per Share Outstanding potentially dilutive stock options, which were not included in the net loss per share amounts as their effect would have been anti-dilutive, were 246,281 and 243,681 shares in fiscal years 2017 and 2016, respectively. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 12 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Marketable Securities | (4) Cash Equivalents and Marketable Securities The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. Substantially all cash equivalents are invested in money market mutual funds. Money market mutual funds held in a brokerage account are considered available for sale. The Company accounts for marketable securities in accordance with FASB ASC 320, InvestmentsDebt and Equity Securities. Available for sale securities are carried at fair value, with unrealized holding gains and losses reported in stockholders’ equity as a separate component of accumulated other comprehensive income (loss). Held to maturity securities are carried at amortized cost. The cost of securities sold is determined based on the specific identification method. Realized gains and losses, and declines in value judged to be other than temporary, are included in investment income. As of September 30, 2017, available for sale securities consisted of the following: Accrued Gross Unrealized Estimated Cost Interest Gains Losses Fair Value Money market mutual funds $ 851,195 $ - $ - $ - $ 851,195 As of September 30, 2017, held to maturity securities consisted of the following: Accrued Amortization Amortized Unrealized Estimated Cost Interest Bond Premium Cost Gains Fair Value Municipal bonds $ 412,366 $ 6,986 $ 59,099 $ 360,253 $ 216 $ 360,469 As of October 1, 2016, available for sale securities consisted of the following: Accrued Gross Unrealized Estimated Cost Interest Gains Losses Fair Value Money market mutual funds $ 978,746 $ - $ - $ - $ 978,746 As of October 1, 2016, held to maturity securities consisted of the following: Accrued Amortization Amortized Unrealized Estimated Cost Interest Bond Premium Cost Gains Fair Value Municipal bonds $ 823,730 $ 11,569 $ 99,461 $ 735,838 $ 2,503 $ 738,341 The contractual maturities of held to maturity securities as of September 30, 2017 were all within one year. The Company’s available for sale securities were included in the cash and cash equivalents caption in the consolidated balance sheets. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | (5) Inventories Inventories consist of the following: September 30, 2017 October 1, 2016 Finished goods $ 20,759 $ 19,167 Work in process 383,216 360,738 Raw materials and supplies 954,369 1,264,017 Total inventories $ 1,358,344 $ 1,643,922 As a result of changes in the market for certain Company products and the resulting excess quantities, carrying amounts for those inventories were reduced by approximately $461,000 and $213,000 during the years ended September 30, 2017 and October 1, 2016, respectively. These inventory write-downs have been reflected in cost of goods sold in the statement of operations. Management believes that these reductions properly reflect inventory at lower of cost or market, and no additional losses will be incurred upon disposition of the excess quantities. While it is at least reasonably possible that the estimate will change materially in the near term, no estimate can be made of the range of additional loss that is at least possible. |
Equipment and Leasehold Improve
Equipment and Leasehold Improvements | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Equipment and Leasehold Improvements | (6) Equipment and Leasehold Improvements Equipment and leasehold improvements consist of the following: September 30, October 1, Estimated 2017 2016 Useful Life Engineering and manufacturing equipment $ 2,124,486 $ 2,124,486 3-8 years Demonstration equipment 845,541 841,966 3 years Furniture and fixtures 1,020,862 1,020,862 3-8 years Automobile 49,441 49,441 5 years Leasehold improvements 494,509 494,509 Lesser of useful life or term of lease Total equipment and leasehold improvements 4,534,839 4,531,264 Less accumulated depreciation and amortization (4,481,085) (4,382,335) Equipment and leasehold improvements, net $ 53,754 $ 148,929 Depreciation expense was $98,750 and $158,838 for the fiscal years ended September 30, 2017 and October 1, 2016, respectively. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Leases | (7) Leases On April 1, 2014, the Company entered into a lease for its current facilities. This lease is for 22,800 square feet located at 100 Domino Drive, Concord, MA. The Company has been a tenant in this space since 1983. This is the Company’s only facility and houses all manufacturing, research and development, and corporate operations. The initial term of the lease is for five years through March 31, 2019 at an annual rate of $171,000. Future minimum lease payments under the remainder of this lease total $256,500 at September 30, 2017. In addition the lease contains options to extend the lease for two and one half years through September 30, 2021 and another two and one half years through March 31, 2024 at an annual rate of $171,000. Rent expense for each of the years ended September 30, 2017 and October 1, 2016 was $171,000. |
Guarantees
Guarantees | 12 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
Guarantees | (8) Guarantees The Company's products generally carry a standard 15 month warranty. The Company sets aside a reserve based on anticipated warranty claims at the time product revenue is recognized. Factors that affect the Company's product warranty liability include the number of installed units, the anticipated cost of warranty repairs and historical and anticipated rates of warranty claims. The warranty reserve is included in other current liabilities on the balance sheet. The following table reflects changes in the Company's accrued warranty account: September 30, 2017 October 1, 2016 Beginning balance $ 6,600 $ 30,483 Plus: accruals related to new sales 14,446 4,530 Less: payments and adjustments to prior period accruals (5,135) (28,413) Ending balance $ 15,911 $ 6,600 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes The benefit for income taxes consists of the following: September 30, 2017 October 1, 2016 Current: Federal $ - $ (44,376) State - 912 Total current taxes - (43,464) Total benefit for income taxes $ - $ (43,464) The benefit for income taxes is different from what would be obtained by applying the statutory federal income tax rate to loss before income taxes due to the following: September 30, 2017 October 1, 2016 Amount Percent Amount Percent Tax benefit at U.S. statutory rate $ (485,862) (34.0) % $ (855,356) (34.0) % State income tax provision, net of federal benefit (81,630) (5.7) % (126,318) (5.0) % Change in state effective rate 563 - (127,485) (5.0) % Prior year true-up 7,425 0.5 % (3,737) (0.1) % Uncertain tax positions - - (44,376) (1.8) % Other (53,545) (3.7) % 3,539 0.1 % Valuation allowance 613,050 42.9 % 1,110,269 44.1 % Total benefit for income taxes $ - - $ (43,464) (1.7) % Deferred income taxes consist of the following: September 30, 2017 October 1, 2016 Inventory differences $ 1,668,529 $ 1,497,123 Net operating losses 2,287,412 1,973,189 Stock based compensation 218,846 213,506 Tax credits 247,989 186,180 Other 300,630 240,359 Total 4,723,406 4,110,357 Less: valuation allowance (4,723,406) (4,110,357) Total $ - $ - During fiscal year 2017 the change in the valuation allowance was $613,050 and related primarily to the Company’s net operating loss and inventory differences. During fiscal year 2014, the Company established a valuation allowance against deferred tax assets. The valuation allowance is related to uncertainty with respect to the Company’s ability to realize its deferred tax assets. Deferred tax assets consist of net operating loss carryforwards, tax credits, inventory differences and other temporary differences. During fiscal year 2016 the change in the valuation allowance was $1,110,269 and related primarily to the net operating loss and inventory differences. Due to the nature of the Company’s current operations in foreign countries (selling products into these countries with the assistance of local representatives), the Company has not been subject to any foreign taxes in recent years. Also, it is not anticipated that the Company will be subject to foreign taxes in the near future. The Company files income tax returns in the U.S. federal jurisdiction and in the states of Massachusetts and New Hampshire. For U.S. federal purposes, the tax years 2014 through 2016 and for state purposes 2013 through 2016 remain open to examination. In addition, the amount of the Company’s federal and state net operating loss carryforwards utilized in prior periods may be subject to examination and adjustment. The Company has federal research credits of $175,577 available through fiscal year 2035 and net operating loss carryforwards of $5,991,999 available through fiscal year 2037. In addition, the Company has Massachusetts research credits of $109,717 available through fiscal year 2029 and net operating loss carryforwards of $5,181,801 available through fiscal year 2037. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | (10) Employee Benefit Plans The Company has a qualified, contributory, profit sharing plan covering substantially all employees. The Company’s policy is to fund contributions as they are accrued. The contributions are allocated based on the employee’s proportionate share of total compensation. The Company’s contributions to the plan are determined by the Board of Directors and are subject to other specified limitations. There were no Company profit sharing contributions during fiscal years 2017 or 2016. The Company's matching contributions were $74,130 and $76,821 in fiscal years 2017 and 2016, respectively. The Company has an Executive Incentive Bonus Plan for the benefit of key management employees. The bonus pool is determined based on the Company’s performance as defined by the plan. Under the plan, there were no bonuses earned, accrued or paid for executives at September 30, 2017 or October 1, 2016. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | (11) Commitments and contingencies At September 30, 2017, the Company had two outstanding letters of credit in the amounts of $11,730 and $1,200, which are secured by collateralized bank accounts totaling $12,930. At October 1, 2016, the Company had three outstanding letters of credit in the amounts of $14,662, $11,730 and $1,200, which are secured by collateralized bank accounts totaling $27,592. The Company maintains its cash and cash equivalents in bank deposit accounts and money market mutual funds that, at times, may exceed federally insured limits. The Company currently holds marketable securities consisting of municipal bonds. The municipal bonds are considered investment grade but may be subject to the issuing entities’ default on interest or principal repayments. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash, cash equivalents or marketable securities. |
Major Customers and Export Sale
Major Customers and Export Sales | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Major Customers and Export Sales | (12) Major Customers and Export Sales In fiscal year 2017, the Company had two customers representing 91% (61% and 30%) of total net sales and at September 30, 2017 had two customers representing 98% (82% and 16%) of accounts receivable. In fiscal year 2016, the Company three customers representing 90% (62%, 18% and 10%) of total net sales and at October 1, 2016 had two customers representing 100% (99% and 1%) of accounts receivable. A breakdown of net sales is as follows: September 30, 2017 October 1, 2016 Domestic $ 3,848,115 $ 2,311,877 Foreign 361,012 211,057 Total Sales $ 4,209,127 $ 2,522,934 A summary of foreign sales, as a percentage of total foreign revenue, by geographic area, is as follows: September 30, 2017 October 1, 2016 Europe - 11.7 % Mid-East and Africa 92.8 % 67.6 % Far East 7.2 % 20.7 % The Company sold products to six countries during the year ended September 30, 2017 and four countries during the year ended October 1, 2016. A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue may include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes our foreign revenues by country as a percentage of total foreign revenue. September 30, 2017 October 1, 2016 Egypt 32.5 % 18.2 % Jordan 29.3 % - Saudi Arabia 28.0 % 49.4 % Philippines 2.8 % 20.7 % Serbia - 11.7 % Other 7.4 % - |
Shareholder Rights Plan
Shareholder Rights Plan | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shareholder Rights Plan | (13) Shareholder Rights Plan On August 7, 2014, the Board of Directors of the Company adopted a Stockholder Rights Plan to replace the Company's former plan, which had expired on August 5, 2014. The new plan is substantially similar to the former plan, and was not adopted in response to any specific takeover threat. In adopting the plan, the Board declared a dividend distribution of one common stock purchase right for each outstanding share of common stock of the Company, payable to stockholders of record at the close of business on August 18, 2014. Until the rights become exercisable, which occurs with certain exceptions when a person or affiliated group acquires 15% or more of TCC's common stock, they will trade automatically with the common stock and separate rights certificates will not be issued. Each right, once exercisable, will entitle the holder (other than rights owned by the acquiring person or group) to buy one share of the common stock at a price of $25 per share, subject to certain adjustments. The rights can generally be redeemed by the Company at $.001 per right at any time prior to the close of business on the 10th business day after there has been a public announcement of the acquisition of beneficial ownership by any person or group of 15% or more of the company’s outstanding common stock, subject to certain exceptions. The rights will expire on August 6, 2024 unless earlier redeemed. |
Cost Method Investment
Cost Method Investment | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Cost Method Investment | (14) Cost Method Investment On October 30, 2014, the Company made an investment of $275,000 to purchase 11,000 shares of common stock of PulsedLight, Inc., an early stage start-up company located in Bend, Oregon. The investment represented a 10.8% ownership stake in the company at the time of purchase and was accounted for utilizing the cost method of accounting. On January 12, 2016, the Company entered into an agreement to sell its shares in PulsedLight. The net proceeds to the Company after closing costs and certain liabilities amounted to $737,283, of which the Company received $661,466 at closing and of which $75,817 was deposited in an escrow account in accordance with the terms of the sale that required 10% of the proceeds to be held in escrow for one year. The escrow balance as of October 1, 2016 is included in other current assets within the accompanying consolidated balance sheet. The escrow balance was received by the Company in January 2017. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of TCC and its wholly-owned subsidiary, TCC Investment Corp., a Massachusetts corporation. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant judgments and estimates include those related to revenue recognition, receivable reserves, inventory reserves, impairment of long-lived assets, income taxes, fair value and stock-based compensation. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include demand deposits at banks and other investments (including mutual funds) readily convertible into cash. Cash equivalents are stated at cost, which approximates market value. At September 30, 2017 and October 1, 2016, the Company had restrictions on the use of certain cash, which was used as collateral to secure outstanding letters of credit totaling $12,930 and $27,592, respectively. |
Accounts Receivable | Accounts Receivable Accounts receivable are reduced by an allowance for amounts that management believes may become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. When the financial condition of our customers deteriorate, resulting in an impairment of their ability to make payments, additional allowances are recorded. In addition, if the Company becomes aware of a customer’s inability to meet its financial obligations to TCC, a specific write-off is recorded in that amount. |
Inventories | Inventories The Company values its inventory at the lower of actual cost (based on the first-in, first-out method) to purchase and/or manufacture or the current estimated market value (based on estimated selling prices, less the cost to sell) of the inventory. The Company periodically reviews inventory quantities on hand and records a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, as well as historical usage. The Company evaluates the carrying value of inventory on a quarterly basis to determine if the carrying value is recoverable at estimated selling prices. To the extent that estimated selling prices are less than the associated carrying values, inventory carrying values are written down. In addition, the Company makes judgments as to future demand requirements and compares those with the current or committed inventory levels. Reserves are established for inventory levels that exceed the Company’s judgement of future demand. It is possible that additional reserves above those already established may be required in the future if market conditions for the Company’s products should deteriorate. |
Equipment and Leasehold Improvements | Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the lesser of the estimated useful life of the asset or the applicable lease term. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts, and any resulting gain or loss is recognized in operations for the period. The costs of maintenance and repairs are charged to operations as incurred; significant renewals and betterments are capitalized. |
Long-lived Assets | Long-lived Assets The Company’s only long-lived assets are equipment and leasehold improvements. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These events include a significant decrease in the market price of a long-lived asset, a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition, a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset, a current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset, among other items. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by such asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Although an indicator of impairment of our long-lived assets did exist at September 30, 2017 and October 1, 2016, we determined that no impairment charge was required as an estimate of our future undiscounted cash flows was sufficient to recover the assets. |
Revenue Recognition | Revenue Recognition The Company recognizes product revenue when there is persuasive evidence of an arrangement, the fee is fixed or determinable, delivery of the product and passage of title to the customer has occurred and the Company has determined that collection of the fee is probable. Title to the product generally passes upon shipment of the product, as the products are shipped freight on board shipping point, except for certain foreign shipments where title passes upon entry of the product into the first port in the buyer’s country. If the product requires installation to be performed by TCC or other acceptance criteria exist, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. The Company provides for a warranty reserve at the time the product revenue is recognized. The Company performs funded research and development and technology development for commercial companies and government agencies under both cost reimbursement and fixed-price contracts. Cost reimbursement contracts provide for the reimbursement of allowable costs and, in some situations, the payment of a fee. These contracts may contain incentive clauses providing for increases or decreases in the fee depending on how actual costs compare with a budget. Revenue from reimbursement contracts is recognized as services are performed. On fixed-price contracts that are expected to exceed one year in duration, revenue is recognized pursuant to the proportional performance method based upon the proportion of actual costs incurred to the total estimated costs for the contract. In each type of contract, the Company receives periodic progress payments or payments upon reaching interim milestones. All payments to the Company for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency, the U.S. Government Accountability Office and other agencies. Adjustments are recognized in the period made. There have been no audits in recent years and the Company believes the result of such audits, should they occur, would not have a material adverse effect on its financial position or results of operations. If the current estimates of total contract revenue and contract costs for a product development contract indicate a loss, a provision for the entire loss on the contract is recorded. Any losses incurred in performing funded research and development projects are recognized as funded research and development expenses. Cost of product revenue includes material, labor and overhead. Costs incurred in connection with funded research and development are included in cost of sales. Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of sales; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses. Product development costs consist primarily of costs associated with personnel, outside contractor and engineering services, supplies and materials. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the employee’s requisite service period, generally the vesting period of the award. The related excess tax benefit received upon the exercise of stock options, if any, is reflected in the Company’s statement of cash flows as a financing activity rather than an operating activity. There were no excess tax benefits for the fiscal years ended September 30, 2017 and October 1, 2016. The Company uses the Black-Scholes option pricing model as the method for determining the estimated fair value of its stock awards. The Black-Scholes method of valuation requires several assumptions: (1) the expected term of the stock award, (2) the expected future stock price volatility over the expected term, (3) a risk-free interest rate and (4) the expected dividend rate. The expected term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock and the risk free interest rate is based on the U.S. Treasury Note rate. The Company utilizes a forfeiture rate based on an analysis of its actual experience. The forfeiture rate is not material to the calculation of stock-based compensation. The fair value of options at date of grant was estimated with the following assumptions: September 30, 2017 October 1, 2016 Assumptions: Option life 6.5 years 6.5 years Risk-free interest rate 2.0 % 1.4 % Stock volatility 72 % 60 % Dividend yield 0 % 0 % There were 14,000 options granted during each of the years ended September 30, 2017 and October 1, 2016. The weighted average grant date fair value of options granted during the years ended September 30, 2017 and October 1, 2016 was $ and $ , respectively. 2017 2016 Selling, general and administrative $ 13,910 $ 11,549 Product development 1,086 2,361 Total stock-based compensation expense before taxes $ 14,996 $ 13,910 A summary of the status of the Company’s nonvested options as of September 30, 2017 and changes during the year ended September 30, 2017 is presented below: Shares Weighted Nonvested options at October 1, 2016 26,700 $ 2.02 Grants 14,000 1.66 Vested (5,900) 2.05 Cancellations/forfeitures (600) 2.98 Nonvested options at September 30, 2017 34,200 $ 1.85 As of September 30, 2017, there was $ of unrecognized compensation cost related to options outstanding. The unrecognized compensation cost will be recognized as the options vest. The weighted average period over which the stock-based compensation cost is expected to be recognized is years. The Technical Communications Corporation 2005 Non-Statutory Stock Option Plan and 2010 Equity Incentive Plan were outstanding at September 30, 2017. There are an aggregate of 600,000 shares authorized for issuance under these plans, of which options to purchase 246,281 shares were outstanding at September 30, 2017. Vesting periods are at the discretion of the Board of Directors and typically range between zero and five years. Options under these plans are granted with an exercise price equal to fair value at time of grant and have a term of ten years from the date of grant. As of September 30, 2017, there were 240,719 shares available for grant under the 2010 Equity Incentive Plan. The 2005 Non-Statutory Stock Option Plan has expired and options are no longer available for grant under such plan. The following tables summarize stock option activity during fiscal years 2016 and 2017: Options Outstanding Number of Shares Weighted Average Weighted Average Unvested Vested Total Exercise Price Contractual Life Outstanding, October 3, 2015 18,060 236,921 254,981 $ 8.49 4.83 years Grants 14,000 - 14,000 2.90 Vested (4,640) 4,640 - 5.89 Exercises - - - - Cancellations/forfeitures (720) (24,580) (25,300) 3.46 Outstanding, October 1, 2016 26,700 216,981 243,681 $ 8.69 4.57 years Grants 14,000 - 14,000 2.50 Vested (5,900) 5,900 - 3.61 Exercises - - - - Cancellations/forfeitures (600) (10,800) (11,400) 8.24 Outstanding, September 30, 2017 34,200 212,081 246,281 $ 8.36 3.95 years Information related to the stock options vested or expected to vest as of September 30, 2017 is as follows: Range of Number of Weighted- Weighted- Exercisable Exercisable $2.01 - $3.00 28,000 8.87 $ 2.70 2,800 $ 2.90 $3.01 - $5.00 40,500 4.88 4.52 32,100 4.65 $5.01 - $10.00 59,000 2.91 7.55 58,400 7.56 $10.01 - $15.00 118,781 3.00 11.40 118,781 11.40 246,281 3.95 $ 8.36 212,081 $ 9.21 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options was $ as of September 30, 2017 and $ as of October 1, 2016. There were no stock options exercised during the years ended September 30, 2017 and October 1, 2016. Nonvested common stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset/liability method. Under the asset/liability method, deferred income taxes are recognized at current income tax rates to reflect the tax effect of temporary differences between the consolidated financial reporting basis and tax basis of assets and liabilities. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company follows the appropriate guidance relative to uncertain tax positions. This standard provides detailed guidance for the financial statement The Company’s policy is to record estimated interest and penalties related to the underpayment of income taxes as a component of its income tax provision. For the year ended October 1, 2016, the Company recorded $1,100 in interest and tax penalties. |
Warranty Costs | Warranty Costs The Company provides for estimated warranty costs at the time product revenue is recognized based in part upon historical experience. |
Fair Value of Financial Measurements | Fair Value of Financial Measurements In determining fair value measurements, the Company follows the provisions of FASB ASC 820, Fair Value Measurements and Disclosures Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date. Level 2 - Pricing inputs are quoted prices for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 3 - Pricing inputs are unobservable for the assets and liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company’s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds in municipalities within the United States. The Company’s available for sale securities consist of mutual funds held in money market mutual funds in a brokerage account, which are classified as cash equivalents. The fair value of these investments is based on quoted prices from recognized pricing services (e.g. Standard & Poor’s, Bloomberg, etc.), or in the case of mutual funds, at their closing published net asset value. The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the fiscal years ended September 30, 2017 and October 1, 2016, there were no transfers between levels. The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of September 30, 2017 and October 1, 2016, in accordance with the fair value hierarchy as defined above. As of September 30, 2017 and October 1, 2016, the Company did not hold any assets classified as Level 2 or Level 3. Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs Total (Level 1) (Level 2) September 30, 2017 Cash Equivalents Mutual funds: Money market funds $ 851,195 $ 851,195 - Total mutual funds 851,195 851,195 - Total assets $ 851,195 $ 851,195 $ - October 1, 2016 Cash Equivalents Mutual funds: Money market funds $ 978,746 $ 978,746 - Total mutual funds 978,746 978,746 - Total assets $ 978,746 $ 978,746 $ - There were no assets or liabilities measured at fair value on a nonrecurring basis at September 30, 2017 and October 1, 2016. |
Earnings per Share (EPS) | Earnings per Share (EPS) The Company presents both a “basic” and a “diluted” EPS. Basic EPS is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. In computing diluted EPS, stock options that are dilutive (those that reduce earnings per share) are included in the calculation of EPS using the treasury stock method. The exercise of outstanding stock options is not included if the result would be antidilutive, such as when a net loss is reported for the period or the option exercise price is greater than the average market price for the period presented. |
Research and Development | Research and Development Research and development costs are included in product development expenses in our consolidated statements of operations. Expenditures for Company-sponsored research and development projects are expensed as incurred, and were $ and $ in 2017 and 2016, respectively. Customer-sponsored research and development projects performed under contracts are accounted for as contract costs as the work is performed and included in cost of sales; such amounts were $ and $ in fiscal years 2017 and 2016, respectively. |
Fiscal Year-End Policy | Fiscal Year-End Policy The Company’s by-laws call for its fiscal year to end on the Saturday closest to the last day of September, unless otherwise decided by its Board of Directors. The 2017 fiscal year ended on September 30, 2017 and included 52 weeks. The 2016 fiscal year ended on October 1, 2016 and included 52 weeks. |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers, amended by ASU 2015-14 (Topic 606), ASU 2016-10, ASU 2016-11 and ASU 2016-12 In May 2014, the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (1) remove inconsistencies and weaknesses in revenue requirements, (2) provide a more robust framework for addressing revenue issues, (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (4) provide more useful information to users of financial statements through improved disclosure requirements, and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact of this guidance and is still considering whether it will have a material effect on the Company’s consolidated financial statements. This guidance will become effective for TCC as of the beginning of our 2019 fiscal year. ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB updated U.S. GAAP to eliminate a critical gap in existing standards regarding disclosure of uncertainties about an entity’s ability to continue as a going concern. The new guidance clarifies the disclosures management must make in the organization’s financial statement footnotes when management has substantial doubt about its ability to continue as a “going concern.” The adoption of this standard requires the Company to evaluate its ability to meet its obligations as they become due for a period of one year from the date that the financial statements are issued. As a result of this requirement, management has determined that substantial doubt exists about our ability to continue as a going concern. See further discussion in Footnote 1 to the financial statements. ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In July 2015, the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This amendment is applicable for the Company beginning in the first quarter of our 2018 fiscal year, and the adoption of this standard is not expected to have a material impact on our financial statements. ASU No. 2016-02, Leases In February 2016, the FASB issued guidance with respect to leases. This ASU requires entities ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. This guidance is applicable for the Company beginning in the first quarter of our 2018 fiscal year. Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC during fiscal 2017 but such pronouncements are not believed by management to have a material impact on the Company’s present or future financial statements |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Assumptions for Estimated Fair Value of Options at Date of Grant | The fair value of options at date of grant was estimated with the following assumptions: September 30, 2017 October 1, 2016 Assumptions: Option life 6.5 years 6.5 years Risk-free interest rate 2.0 % 1.4 % Stock volatility 72 % 60 % Dividend yield 0 % 0 % |
Stock-Based Compensation Costs | The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the years ended September 30, 2017 and October 1, 2016: 2017 2016 Selling, general and administrative $ 13,910 $ 11,549 Product development 1,086 2,361 Total stock-based compensation expense before taxes $ 14,996 $ 13,910 |
Summary of Company's Nonvested Shares | A summary of the status of the Company’s nonvested options as of September 30, 2017 and changes during the year ended September 30, 2017 is presented below: Shares Weighted Nonvested options at October 1, 2016 26,700 $ 2.02 Grants 14,000 1.66 Vested (5,900) 2.05 Cancellations/forfeitures (600) 2.98 Nonvested options at September 30, 2017 34,200 $ 1.85 |
Stock Options Activity | The following tables summarize stock option activity during fiscal years 2016 and 2017: Options Outstanding Number of Shares Weighted Average Weighted Average Unvested Vested Total Exercise Price Contractual Life Outstanding, October 3, 2015 18,060 236,921 254,981 $ 8.49 4.83 years Grants 14,000 - 14,000 2.90 Vested (4,640) 4,640 - 5.89 Exercises - - - - Cancellations/forfeitures (720) (24,580) (25,300) 3.46 Outstanding, October 1, 2016 26,700 216,981 243,681 $ 8.69 4.57 years Grants 14,000 - 14,000 2.50 Vested (5,900) 5,900 - 3.61 Exercises - - - - Cancellations/forfeitures (600) (10,800) (11,400) 8.24 Outstanding, September 30, 2017 34,200 212,081 246,281 $ 8.36 3.95 years |
Stock Options Vested or Expected to Vest | Information related to the stock options vested or expected to vest as of September 30, 2017 is as follows: Range of Number of Weighted- Weighted- Exercisable Exercisable $2.01 - $3.00 28,000 8.87 $ 2.70 2,800 $ 2.90 $3.01 - $5.00 40,500 4.88 4.52 32,100 4.65 $5.01 - $10.00 59,000 2.91 7.55 58,400 7.56 $10.01 - $15.00 118,781 3.00 11.40 118,781 11.40 246,281 3.95 $ 8.36 212,081 $ 9.21 |
Fair Value of Assets Measured on Recurring Basis | The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of September 30, 2017 and October 1, 2016, in accordance with the fair value hierarchy as defined above. As of September 30, 2017 and October 1, 2016, the Company did not hold any assets classified as Level 2 or Level 3. Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs Total (Level 1) (Level 2) September 30, 2017 Cash Equivalents Mutual funds: Money market funds $ 851,195 $ 851,195 - Total mutual funds 851,195 851,195 - Total assets $ 851,195 $ 851,195 $ - October 1, 2016 Cash Equivalents Mutual funds: Money market funds $ 978,746 $ 978,746 - Total mutual funds 978,746 978,746 - Total assets $ 978,746 $ 978,746 $ - |
Cash Equivalents and Marketab23
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Available for Sale Securities | As of September 30, 2017, available for sale securities consisted of the following: Accrued Gross Unrealized Estimated Cost Interest Gains Losses Fair Value Money market mutual funds $ 851,195 $ - $ - $ - $ 851,195 As of October 1, 2016, available for sale securities consisted of the following: Accrued Gross Unrealized Estimated Cost Interest Gains Losses Fair Value Money market mutual funds $ 978,746 $ - $ - $ - $ 978,746 |
Held to Maturity Securities | As of September 30, 2017, held to maturity securities consisted of the following: Accrued Amortization Amortized Unrealized Estimated Cost Interest Bond Premium Cost Gains Fair Value Municipal bonds $ 412,366 $ 6,986 $ 59,099 $ 360,253 $ 216 $ 360,469 As of October 1, 2016, held to maturity securities consisted of the following: Accrued Amortization Amortized Unrealized Estimated Cost Interest Bond Premium Cost Gains Fair Value Municipal bonds $ 823,730 $ 11,569 $ 99,461 $ 735,838 $ 2,503 $ 738,341 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventories | Inventories consist of the following: September 30, 2017 October 1, 2016 Finished goods $ 20,759 $ 19,167 Work in process 383,216 360,738 Raw materials and supplies 954,369 1,264,017 Total inventories $ 1,358,344 $ 1,643,922 |
Equipment and Leasehold Impro25
Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Equipment And Leasehold Improvements | Equipment and leasehold improvements consist of the following: September 30, October 1, Estimated 2017 2016 Useful Life Engineering and manufacturing equipment $ 2,124,486 $ 2,124,486 3-8 years Demonstration equipment 845,541 841,966 3 years Furniture and fixtures 1,020,862 1,020,862 3-8 years Automobile 49,441 49,441 5 years Leasehold improvements 494,509 494,509 Lesser of useful life or term of lease Total equipment and leasehold improvements 4,534,839 4,531,264 Less accumulated depreciation and amortization (4,481,085) (4,382,335) Equipment and leasehold improvements, net $ 53,754 $ 148,929 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
Accrued Warranty Account | The following table reflects changes in the Company's accrued warranty account: September 30, 2017 October 1, 2016 Beginning balance $ 6,600 $ 30,483 Plus: accruals related to new sales 14,446 4,530 Less: payments and adjustments to prior period accruals (5,135) (28,413) Ending balance $ 15,911 $ 6,600 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The benefit for income taxes consists of the following: September 30, 2017 October 1, 2016 Current: Federal $ - $ (44,376) State - 912 Total current taxes - (43,464) Total benefit for income taxes $ - $ (43,464) |
Schedule of Effective Income Tax Rate Reconciliation | The benefit for income taxes is different from what would be obtained by applying the statutory federal income tax rate to loss before income taxes due to the following: September 30, 2017 October 1, 2016 Amount Percent Amount Percent Tax benefit at U.S. statutory rate $ (485,862) (34.0) % $ (855,356) (34.0) % State income tax provision, net of federal benefit (81,630) (5.7) % (126,318) (5.0) % Change in state effective rate 563 - (127,485) (5.0) % Prior year true-up 7,425 0.5 % (3,737) (0.1) % Uncertain tax positions - - (44,376) (1.8) % Other (53,545) (3.7) % 3,539 0.1 % Valuation allowance 613,050 42.9 % 1,110,269 44.1 % Total benefit for income taxes $ - - $ (43,464) (1.7) % |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes consist of the following: September 30, 2017 October 1, 2016 Inventory differences $ 1,668,529 $ 1,497,123 Net operating losses 2,287,412 1,973,189 Stock based compensation 218,846 213,506 Tax credits 247,989 186,180 Other 300,630 240,359 Total 4,723,406 4,110,357 Less: valuation allowance (4,723,406) (4,110,357) Total $ - $ - |
Major Customers and Export Sa28
Major Customers and Export Sales (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Breakdown of Foreign and Domestic Net Sales | A breakdown of net sales is as follows: September 30, 2017 October 1, 2016 Domestic $ 3,848,115 $ 2,311,877 Foreign 361,012 211,057 Total Sales $ 4,209,127 $ 2,522,934 |
Foreign Revenue, as Percentage of Total Foreign Revenue by Geographic Area | A summary of foreign sales, as a percentage of total foreign revenue, by geographic area, is as follows: September 30, 2017 October 1, 2016 Europe - 11.7 % Mid-East and Africa 92.8 % 67.6 % Far East 7.2 % 20.7 % |
Foreign Revenues by Country as Percentage of Total Foreign Revenue | The table below summarizes our foreign revenues by country as a percentage of total foreign revenue. September 30, 2017 October 1, 2016 Egypt 32.5 % 18.2 % Jordan 29.3 % - Saudi Arabia 28.0 % 49.4 % Philippines 2.8 % 20.7 % Serbia - 11.7 % Other 7.4 % - |
Company Operations - Additional
Company Operations - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Retained Earnings (Accumulated Deficit), Total | $ (822,636) | $ 606,370 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 01, 2016 | Oct. 01, 2015 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 54,280 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 7 months 2 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 246,281 | 243,681 | 243,681 | 254,981 |
share Based Compensation Arrangement By Share Based Payment Award Options Exercisable And Outstanding Intrinsic Value | $ 14,140 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 14,000 | 14,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.66 | $ 1.67 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 600,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 1,100 | |||
Research and Development Expense, Total | $ 1,584,210 | 827,987 | 827,987 | |
Contract Revenue Cost | 437,000 | 1,177,734 | ||
Restricted Cash and Cash Equivalents, Current | $ 12,930 | $ 27,592 | $ 27,592 | |
2010 Equity Incentive Plan [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 240,719 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Assumptions for Estimated Fair Value of Options at Date of Grant (Detail) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Option life | 6 years 6 months | 6 years 6 months |
Risk-free interest rate | 2.00% | 1.40% |
Stock volatility | 72.00% | 60.00% |
Dividend yield | 0.00% | 0.00% |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Share-based compensation costs (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense before taxes | $ 14,996 | $ 13,910 |
Product Development Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense before taxes | 1,086 | 2,361 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense before taxes | $ 13,910 | $ 11,549 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Summary of Company's Nonvested Shares (Detail) - $ / shares | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Beginning Balance, Outstanding, Unvested | 26,700 | 18,060 |
Grants | 14,000 | 14,000 |
Vested | (5,900) | (4,640) |
Cancellations/forfeitures, Unvested | (600) | (720) |
Ending Balance,Outstanding, Unvested | 34,200 | 26,700 |
Weighted Average Grant Date Fair Value, Outstanding Nonvested options, Beginning balance | $ 2.02 | |
Weighted Average Grant Date Fair Value, Grants | 1.66 | |
Weighted Average Grant Date Fair Value, Vested | 2.05 | |
Weighted Average Grant Date Fair Value, Cancellations/forfeitures | 2.98 | |
Weighted Average Grant Date Fair Value, Outstanding Nonvested options, Ending balance | $ 1.85 | $ 2.02 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Outstanding, Unvested | 26,700 | 18,060 | |
Grants | 14,000 | 14,000 | |
Vested, Unvested | (5,900) | (4,640) | |
Exercises, Unvested | 0 | 0 | |
Cancellations/forfeitures, Unvested | (600) | (720) | |
Ending Balance,Outstanding, Unvested | 34,200 | 26,700 | |
Beginning balance, Outstanding, Vested | 216,981 | 236,921 | |
Grants, Vested | 0 | 0 | |
Vested | 5,900 | 4,640 | |
Exercises, Vested | 0 | 0 | |
Cancellations/forfeitures, Vested | (10,800) | (24,580) | |
Ending Balance, Outstanding, vested | 212,081 | 216,981 | |
Number of Shares, Outstanding, Beginning balance | 243,681 | 254,981 | |
Number of Shares, Grants | 14,000 | 14,000 | |
Number of Shares, Vested | 0 | 0 | |
Number of Shares, Exercises | 0 | ||
Number of Shares, Cancellations/forfeitures | (11,400) | (25,300) | |
Number of Shares, Outstanding, Ending Balance | 246,281 | 243,681 | |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 8.69 | $ 8.49 | |
Weighted Average Exercise Price, Grants | 2.50 | 2.90 | |
Weighted Average Exercise Price, Vested | 3.61 | 5.89 | |
Weighted Average Exercise Price, Exercises | 0 | 0 | |
Weighted Average Exercise Price, Cancellation/ forfeitures | 8.24 | 3.46 | |
Weighted Average Exercise Price, Ending Balance | $ 8.36 | $ 8.69 | |
Weighted Average Contractual Life | 3 years 11 months 12 days | 4 years 6 months 25 days | 4 years 9 months 29 days |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Stock Options Vested or Expected to Vest (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 01, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 246,281 | ||
Weighted-Average Remaining Contractual Life (years) | 3 years 11 months 12 days | ||
Weighted Average Exercise Price | $ 8.36 | ||
Exercisable Number of Shares | 212,081 | 216,981 | 236,921 |
Exercisable Weighted-Average Exercise Price | $ 9.21 | ||
Range One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Prices, Lower limit | 2.01 | ||
Range of Exercise Prices, Upper limit | $ 3 | ||
Number of Shares | 28,000 | ||
Weighted-Average Remaining Contractual Life (years) | 8 years 10 months 13 days | ||
Weighted Average Exercise Price | $ 2.70 | ||
Exercisable Number of Shares | 2,800 | ||
Exercisable Weighted-Average Exercise Price | $ 2.90 | ||
Range Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Prices, Lower limit | 3.01 | ||
Range of Exercise Prices, Upper limit | $ 5 | ||
Number of Shares | 40,500 | ||
Weighted-Average Remaining Contractual Life (years) | 4 years 10 months 17 days | ||
Weighted Average Exercise Price | $ 4.52 | ||
Exercisable Number of Shares | 32,100 | ||
Exercisable Weighted-Average Exercise Price | $ 4.65 | ||
Range Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Prices, Lower limit | 5.01 | ||
Range of Exercise Prices, Upper limit | $ 10 | ||
Number of Shares | 59,000 | ||
Weighted-Average Remaining Contractual Life (years) | 2 years 10 months 28 days | ||
Weighted Average Exercise Price | $ 7.55 | ||
Exercisable Number of Shares | 58,400 | ||
Exercisable Weighted-Average Exercise Price | $ 7.56 | ||
Range Four [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Prices, Lower limit | 10.01 | ||
Range of Exercise Prices, Upper limit | $ 15 | ||
Number of Shares | 118,781 | ||
Weighted-Average Remaining Contractual Life (years) | 3 years | ||
Weighted Average Exercise Price | $ 11.40 | ||
Exercisable Number of Shares | 118,781 | ||
Exercisable Weighted-Average Exercise Price | $ 11.40 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Fair Value of Assets Measured on Recurring Basis (Detail) - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Available-for-sale securities, Estimated Fair Value | $ 851,195 | $ 978,746 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities, Estimated Fair Value | 851,195 | 978,746 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities, Estimated Fair Value | 0 | 0 |
Mutual Fund [Member] | Cash Equivalents [Member] | ||
Available-for-sale securities, Estimated Fair Value | 851,195 | 978,746 |
Mutual Fund [Member] | Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities, Estimated Fair Value | 851,195 | 978,746 |
Mutual Fund [Member] | Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities, Estimated Fair Value | 0 | 0 |
Mutual Fund [Member] | Cash Equivalents [Member] | Money Market Funds [Member] | ||
Available-for-sale securities, Estimated Fair Value | 851,195 | 978,746 |
Mutual Fund [Member] | Cash Equivalents [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities, Estimated Fair Value | 851,195 | 978,746 |
Mutual Fund [Member] | Cash Equivalents [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities, Estimated Fair Value | $ 0 | $ 0 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding potentially anti-dilutive stock options | 246,281 | 243,681 |
Cash Equivalents and Marketab38
Cash Equivalents and Marketable Securities - Available-for-Sale Securities (Detail) - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Available-for-sale securities, Estimated Fair Value | $ 851,195 | $ 978,746 |
Money Market Funds [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Available-for-sale securities, Cost | 851,195 | 978,746 |
Available-for-sale securities, Accrued Interest | 0 | 0 |
Available-for-sale securities, Gross Unrealized Gains | 0 | 0 |
Available-for-sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale securities, Estimated Fair Value | $ 851,195 | $ 978,746 |
Cash Equivalents and Marketab39
Cash Equivalents and Marketable Securities - Held to Maturity Securities (Detail) - Municipal Bonds [Member] - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity Securities, Cost | $ 412,366 | $ 823,730 |
Held to Maturity Securities, Accrued Interest | 6,986 | 11,569 |
Held to Maturity Securities, Amortization Bond Premium | 59,099 | 99,461 |
Held to Maturity Securities, Amortized Cost | 360,253 | 735,838 |
Held to Maturity Securities, Unrealized Gains | 216 | 2,503 |
Held to Maturity Securities, Estimated Fair Value | $ 360,469 | $ 738,341 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Inventory [Line Items] | ||
Inventory Valuation Reserves | $ 461,000 | $ 213,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Inventory [Line Items] | ||
Finished goods | $ 20,759 | $ 19,167 |
Work in process | 383,216 | 360,738 |
Raw materials and supplies | 954,369 | 1,264,017 |
Total inventories | $ 1,358,344 | $ 1,643,922 |
Equipment and Leasehold Impro42
Equipment and Leasehold Improvements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Depreciation expense | $ 98,750 | $ 158,838 |
Equipment and Leasehold Impro43
Equipment and Leasehold Improvements - Schedule of Equipment and Leasehold Improvements (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total equipment and leasehold improvements | $ 4,534,839 | $ 4,531,264 |
Less accumulated depreciation and amortization | (4,481,085) | (4,382,335) |
Equipment and leasehold improvements, net | 53,754 | 148,929 |
Engineering and manufacturing equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment and leasehold improvements | $ 2,124,486 | 2,124,486 |
Engineering and manufacturing equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Engineering and manufacturing equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Demonstration equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment and leasehold improvements | $ 845,541 | 841,966 |
Property, Plant and Equipment, Useful Life | 3 years | |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment and leasehold improvements | $ 1,020,862 | 1,020,862 |
Furniture and fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Furniture and fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Automobile [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment and leasehold improvements | $ 49,441 | 49,441 |
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment and leasehold improvements | $ 494,509 | $ 494,509 |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of useful life or term of lease |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | Apr. 01, 2014ft² | |
Area Of Office Space Leased | ft² | 22,800 | ||
Lease Annual Rent Payments | $ 171,000 | ||
Operating Leases, Future Minimum Payments Due | 256,500 | ||
Operating Leases, Rent Expense | $ 171,000 | $ 171,000 | |
Provision For Lease Extension Period | the lease contains options to extend the lease for two and one half years through September 30, 2021 and another two and one half years through March 31, 2024 | ||
Initial Lease Term | 5 years |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2017 | |
Standard Product Warranty Period | 15 months |
Guarantees - Schedule of Produc
Guarantees - Schedule of Product Warranty Liability (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Beginning balance | $ 6,600 | $ 30,483 |
Plus: accruals related to new sales | 14,446 | 4,530 |
Less: payments and adjustments to prior period accruals | (5,135) | (28,413) |
Ending balance | $ 15,911 | $ 6,600 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Income Tax Contingency [Line Items] | ||
Change in valuation allowance | $ 613,050 | $ 1,110,269 |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax examination | 2,014 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax examination | 2,016 | |
Federal Research And Development Credits [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax credit carryforward, expiration year | 2,035 | |
Operating loss carry forwards | 2,037 | |
Credit research | $ 175,577 | |
Operating Loss Carryforwards | $ 5,991,999 | |
Massachusetts Research Credits [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax credit carryforward, expiration year | 2,029 | |
Operating loss carry forwards | 2,037 | |
Credit research | $ 109,717 | |
Operating Loss Carryforwards | $ 5,181,801 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Current: | ||
Federal | $ 0 | $ (44,376) |
State | 0 | 912 |
Total current taxes | 0 | (43,464) |
Total benefit for income taxes | $ 0 | $ (43,464) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Tax benefit at U.S. statutory rate | $ (485,862) | $ (855,356) |
State income tax provision, net of federal benefit | (81,630) | (126,318) |
Change in state effective rate | 563 | (127,485) |
Prior year true-up | 7,425 | (3,737) |
Uncertain tax positions | 0 | (44,376) |
Other | (53,545) | 3,539 |
Valuation allowance | 613,050 | 1,110,269 |
Total benefit for income taxes | $ 0 | $ (43,464) |
Change in state effective rate, Percent | 0.00% | (5.00%) |
Uncertain tax positions, Percent | 0.00% | (1.80%) |
Tax benefit at U.S. statutory rate | (34.00%) | (34.00%) |
State income tax provision, net of federal benefit | (5.70%) | (5.00%) |
Prior year true-up | 0.50% | (0.10%) |
Valuation allowance | 42.90% | 44.10% |
Total benefit for income taxes | 0.00% | (1.70%) |
Other, Percent | (3.70%) | 0.10% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Inventory differences | $ 1,668,529 | $ 1,497,123 |
Net operating losses | 2,287,412 | 1,973,189 |
Stock based compensation | 218,846 | 213,506 |
Tax credits | 247,989 | 186,180 |
Other | 300,630 | 240,359 |
Total | 4,723,406 | 4,110,357 |
Less: valuation allowance | (4,723,406) | (4,110,357) |
Total | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Defined Contribution Plan Employer Matching Contribution Amount | $ 74,130 | $ 76,821 |
Accrued Bonuses | $ 0 | $ 0 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Oct. 01, 2016 |
Letter of Credit [Member] | ||
Letters of Credit Outstanding, Amount | $ 12,930 | $ 27,592 |
Collateralized Bank Account [Member] | Letter Of Credit One [Member] | ||
Letters of Credit Outstanding, Amount | 11,730 | 14,662 |
Collateralized Bank Account [Member] | Letter Of Credit Two [Member] | ||
Letters of Credit Outstanding, Amount | $ 1,200 | 11,730 |
Collateralized Bank Account [Member] | Letter Of Credit Three [Member] | ||
Letters of Credit Outstanding, Amount | $ 1,200 |
Major Customers and Export Sa53
Major Customers and Export Sales - Additional Information (Detail) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of countries in which products are sold | 6 | 4 |
Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of major customers | 2 | 3 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 91.00% | 90.00% |
Sales Revenue, Net [Member] | FirstCustomer [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 61.00% | 62.00% |
Sales Revenue, Net [Member] | SecondCustomer [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 30.00% | 18.00% |
Sales Revenue, Net [Member] | ThirdCustomer [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 10.00% | |
Accounts Receivable [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of countries in which products are sold | 2 | 2 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 98.00% | 100.00% |
Accounts Receivable [Member] | FirstCustomer [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 82.00% | 99.00% |
Accounts Receivable [Member] | SecondCustomer [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 16.00% | 1.00% |
Major Customers and Export Sa54
Major Customers and Export Sales - Breakdown of Foreign and Domestic Net Sales (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Schedule Of Net Sales By Geographical Segment [Line Items] | ||
Total Sales | $ 4,209,127 | $ 2,522,934 |
Domestic [Member] | ||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||
Total Sales | 3,848,115 | 2,311,877 |
Foreign [Member] | ||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||
Total Sales | $ 361,012 | $ 211,057 |
Major Customers and Export Sa55
Major Customers and Export Sales - Foreign Revenue, as Percentage of Total Foreign Revenue by Geographic Area (Detail) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Geographical Area As Percentage Of Foreign Revenue | 0.00% | 11.70% |
Mid-East and Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Geographical Area As Percentage Of Foreign Revenue | 92.80% | 67.60% |
Far East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Geographical Area As Percentage Of Foreign Revenue | 7.20% | 20.70% |
Major Customers and Export Sa56
Major Customers and Export Sales - Foreign Revenues by Country as Percentage of Total Foreign Revenue (Detail) | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Foreign Countries As Percentage Of Foreign Revenue | 29.30% | 0.00% |
EGYPT | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Foreign Countries As Percentage Of Foreign Revenue | 32.50% | 18.20% |
SAUDI ARABIA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Foreign Countries As Percentage Of Foreign Revenue | 28.00% | 49.40% |
PHILIPPINES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Foreign Countries As Percentage Of Foreign Revenue | 2.80% | 20.70% |
SERBIA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Foreign Countries As Percentage Of Foreign Revenue | 0.00% | 11.70% |
OTHER FOREIGN COUNTRY | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue From Foreign Countries As Percentage Of Foreign Revenue | 7.40% | 0.00% |
Shareholder Rights Plan - Addit
Shareholder Rights Plan - Additional Information (Detail) - $ / shares | Aug. 07, 2014 | Sep. 30, 2017 |
Share holder Rights Expiration Date | Aug. 5, 2014 | |
Stockholder Rights Plan [Member] | ||
Share holder Rights Expiration Date | Aug. 6, 2024 | |
Plan Adoption Date | Aug. 7, 2014 | |
Voting Power In Outstanding Stock Percentage | 15.00% | |
Redemption Value Per Redeemable Share At Period End | $ 0.001 | |
Dividends Payable, Date of Record | Aug. 18, 2014 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 25 | |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | |
Stockholder Rights Plan [Member] | Minimum [Member] | ||
Voting Power In Outstanding Stock Percentage | 15.00% |
Cost Method Investment - Additi
Cost Method Investment - Additional Information (Detail) - USD ($) | Jan. 12, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 30, 2014 |
Investments [Line Items] | ||||
Deposited in escrow account | $ 0 | $ 75,817 | ||
Escrow Deposit Period | 1 year | |||
Pulsedlight [Member] | ||||
Investments [Line Items] | ||||
Equity investment made by the company | $ 275,000 | |||
Percentage of stake ownership in investment | 10.80% | |||
Purchase of common stock shares | 11,000 | |||
Net proceeds from sale of shares | $ 737,283 | |||
Cash received from sale of shares | 661,466 | |||
Deposited in escrow account | $ 75,817 | |||
Percentage proceeds held in escrow | 10.00% |