Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 24, 2022 | Feb. 03, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 24, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-34816 | |
Entity Registrant Name | TECHNICAL COMMUNICATIONS CORPORATION | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2295040 | |
Entity Address, Address Line One | 100 Domino Drive | |
Entity Address, City or Town | Concord | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01742-2892 | |
City Area Code | 978 | |
Local Phone Number | 287-5100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 1,854,403 | |
Entity Central Index Key | 0000096699 | |
Current Fiscal Year End Date | --09-24 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 24, 2022 | Sep. 24, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 58,716 | $ 6,727 |
Accounts receivable - trade | 0 | 15,174 |
Government grant receivable – Employee retention credit (Note 8) | 498,143 | 515,966 |
Inventories, net | 972,083 | 966,185 |
Other current assets | 166,868 | 186,963 |
Total current assets | 1,695,810 | 1,691,015 |
Equipment and leasehold improvements | 4,556,144 | 4,556,144 |
Less: accumulated depreciation and amortization | (4,546,046) | (4,544,778) |
Equipment and leasehold improvements, net | 10,098 | 11,366 |
Operating lease right-of-use asset | 208,015 | 248,462 |
Total Assets | 1,913,923 | 1,950,843 |
Current Liabilities: | ||
Current maturities of notes payable – long-term (Note 7) | 3,023 | 1,996 |
Notes payable - related party | 3,725,000 | 3,000,000 |
Current operating lease liabilities | 165,630 | 164,086 |
Accounts payable | 257,190 | 159,388 |
Customer deposits | 6,713 | 3,933 |
Accrued liabilities: | ||
Accrued compensation and related expenses | 154,050 | 204,412 |
Accrued interest | 179,233 | 118,208 |
Other current liabilities | 4,217 | 1,419 |
Total current liabilities | 4,495,056 | 3,653,442 |
Long-term operating lease liability | 42,385 | 84,376 |
Note payable – long-term, net of current maturities (Note 7) | 146,731 | 148,004 |
Total Liabilities | 4,684,172 | 3,885,822 |
Commitments and Contingencies | ||
Stockholders’ Equity: | ||
Common stock, par value $0.10 per share; 7,000,000 shares authorized; 1,854,403 shares issued and outstanding at December 24, 2022 and September 24, 2022 | 185,440 | 185,440 |
Additional paid-in capital | 4,378,017 | 4,364,687 |
Accumulated deficit | 7,333,706 | 6,485,106 |
Total stockholders’ deficit | (2,770,249) | (1,934,979) |
Total Liabilities and Stockholders’ Equity | $ 1,913,923 | $ 1,950,843 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Dec. 24, 2022 | Sep. 24, 2022 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized (in shares) | 7,000,000 | 7,000,000 |
Common Stock, Shares, Issued (in shares) | 1,854,403 | 1,854,403 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 1,854,403 | 1,854,403 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 24, 2022 | Dec. 25, 2021 | |
Net revenue | $ 121,537 | $ 423,481 |
Cost of revenue | 148,118 | 356,828 |
Gross (loss) profit | (26,581) | 66,653 |
Operating expenses: | ||
Selling, general and administrative | 483,535 | 562,360 |
Product development | 277,183 | 101,099 |
Total operating expenses | 760,718 | 663,459 |
Operating loss | (787,299) | (596,806) |
Other expense: | ||
Interest expense | (61,301) | (16,555) |
Total other expense | (61,301) | (16,555) |
Net loss | $ (848,600) | $ (613,361) |
Net loss per common share: | ||
Basic (in dollars per share) | $ (0.46) | $ (0.33) |
Diluted (in dollars per share) | $ (0.46) | $ (0.33) |
Weighted average shares: | ||
Basic (in shares) | 1,854,403 | 1,850,403 |
Diluted (in shares) | 1,854,403 | 1,850,403 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 24, 2022 | Dec. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Operating Activities: | ||||
Net loss | $ (848,600) | $ (613,361) | $ (2,331,139) | $ (1,088,386) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 1,268 | 1,321 | ||
Stock-based compensation | 13,330 | 12,623 | ||
Changes in certain operating assets and liabilities: | ||||
Accounts receivable | 15,174 | 153,340 | ||
Inventories | (5,898) | 29,928 | ||
Other current assets | 20,095 | 21,546 | ||
Customer deposits | 2,780 | (41,191) | ||
Government grant receivable - ERC | 17,823 | 0 | ||
Accounts payable and other accrued liabilities | 111,263 | 45,031 | ||
Net cash used in operating activities | (672,765) | (390,763) | ||
Financing Activities: | ||||
Proceeds from notes payable – related party | 725,000 | 150,000 | ||
Repayment of long-term debt | 246 | |||
Net cash provided by financing activities | 724,754 | 150,000 | ||
Net increase (decrease) in cash and cash equivalents | 51,989 | (240,763) | ||
Cash and cash equivalents at beginning of the period | 6,727 | 298,022 | 298,022 | |
Cash and cash equivalents at end of the period | $ 58,716 | $ 57,259 | $ 6,727 | $ 298,022 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance (in shares) at Sep. 25, 2021 | 1,854,403 | |||
Beginning balance at Sep. 25, 2021 | $ 185,440 | $ 4,312,969 | $ (4,153,967) | |
Ending balance at Dec. 25, 2021 | $ 185,440 | 4,325,592 | (4,767,328) | $ (256,296) |
Stock-based compensation | 12,623 | |||
Net loss | (613,361) | (613,361) | ||
Beginning balance (in shares) at Sep. 25, 2021 | 1,854,403 | |||
Beginning balance at Sep. 25, 2021 | $ 185,440 | 4,312,969 | (4,153,967) | |
Ending balance at Sep. 24, 2022 | $ 185,440 | 4,364,687 | (6,485,106) | (1,934,979) |
Net loss | (2,331,139) | |||
Beginning balance (in shares) at Sep. 24, 2022 | 1,854,403 | |||
Ending balance at Dec. 24, 2022 | $ 185,440 | 4,378,017 | (7,333,706) | (2,770,249) |
Stock-based compensation | $ 13,330 | |||
Net loss | $ (848,600) | $ (848,600) |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Basis of Presentation | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1. Description of the Business and Basis of Presentation 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 sometimes collectively referred to herein 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. Interim Financial Statements The accompanying unaudited consolidated financial statements of Technical Communications Corporation and its wholly-owned subsidiary include all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented and in order to make the financial statements not misleading. All such adjustments are of a normal recurring nature. Interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2023. The September 24, 2022 consolidated balance sheet contained herein was derived from the Company’s audited consolidated balance sheet at September 24, 2022 as contained in the Company’s Annual Report on Form 10-K for the fiscal year then ended as filed with the U.S. Securities and Exchange Commission (“SEC”). Certain footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by SEC rules and regulations. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the fiscal year ended September 24, 2022 included in its Annual Report on Form 10-K as filed with the SEC (the “2022 Annual Report”). The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the FASB. The FASB sets generally accepted accounting principles (“GAAP”) that the Company follows to ensure it consistently reports its 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 Liquidity and Ability to Continue as a Going Concern For the quarter ended December 24, 2022, the Company generated a net loss of $848,600 and for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020, the Company generated net losses of $2,331,139, $1,088,386 and $910,650 and, although the Company generated $631,426 of net income in the fiscal year ended September 28, 2019, the Company suffered recurring losses from operations during the prior seven year period from fiscal 2012 to fiscal 2018. The Company has an accumulated deficit of $7,333,706 at December 24, 2022. These factors continue to raise substantial doubt about the Company's ability to continue as a going concern. Such consolidated financial statements do not include any adjustments to reflect the substantial doubt about the Company’s ability to continue as a going concern. On August 4, 2022, the Company issued an amended and restated demand promissory note in the principal amount of up to $4,000,000 in favor of Carl H. Guild, Jr. Mr. Guild, the Company’s Chief Executive Officer, President and Chairman of the Board, loaned the money to the Company to provide working capital. The $4,000,000 consists of $1,000,000 previously loaned to the Company at an interest rate of 6% and $2,000,000 previously loaned to the Company at an interest rate of 7.5% and an additional $1,000,000 at an interest rate of 7.5%. The additional funds will be available to the Company to borrow from Mr. Guild on a revolving basis and the loan has no specified term year and may be prepaid at any time without premium or penalty. The outstanding principal balance at December 24, 2022 was $3,725,000, plus accrued interest of $167,000. An interest payment of $30,000 was made in January of 2022. In December 2022 the Company implemented a partial furlough plan for the majority of salaried employees. The plan reduces the workweek to 24 hours and salaries have been reduced commensurately. In January of 2023 the Company reduced the workweek further to 16 hours. With this furlough plan in place we anticipate that our principal sources of liquidity, including the recent line of credit, will be sufficient to fund our activities through February 2023. In order to have sufficient cash to fund our operations beyond that point, we will need to secure new customer contracts, raise additional equity or debt capital, and reduce expenses, including payroll and payroll-related expenses through another employee furlough and/or separations. 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. The receipt of these orders has been significantly delayed and will continue to be difficult to predict due to the impact of the COVID-19 pandemic on our customers as a result of their operations being reduced or shut down. TCC has been able to maintain its operations during this sustained period of disruption, but a continuation of the disruption in either our customers’ operations or those of the Company will continue to have a material adverse impact on sales activity and revenue. During fiscal year 2020, the Company was granted a loan from the SBA in the principal amount of $150,000 pursuant to the Economic Injury Disaster Loan program. This loan is payable monthly over 30 years at an annual interest rate of 3.75% commencing thirty months from the date of issuance. The Company is working diligently to secure additional capital through equity or debt arrangements in addition to the recent funding received from the SBA and Mr. Guild. The Company is actively working with equity investors as well as debt investors, such as the SBA and Mr. Guild to secure additional funding, although we cannot provide assurances we will be able to secure such new funding, especially in light of the tightening of the credit markets and continuing volatility of the capital markets as a result of the coronavirus. Moreover, the Company’s common stock was delisted from the Nasdaq Capital Market effective January 25, 2021; while the common stock is quoted on the OTC Bulletin Board, the change in listing may have a negative impact on the liquidity of the stock and the Company’s ability to raise capital through offerings of its equity securities. Should the Company be unsuccessful in these efforts, it would be forced to implement headcount reductions, additional employee furloughs and/or reduced hours for certain employees, or cease operations completely. Reporting Period 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. Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of TCC and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The discussion and analysis of the Company’s financial condition and results of operations are based on the unaudited consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these unaudited consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. On an ongoing basis, management evaluates its estimates and judgments, including but not limited to those related to revenue recognition, inventory reserves, receivable reserves, marketable securities, impairment of long-lived assets, income taxes, fair value of financial instruments and stock-based compensation. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies and Significant Judgments and Estimates | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | NOTE 2. Summary of Significant Accounting Policies and Significant Judgments and Estimates The Company’s significant accounting policies are described in “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its 2022 Annual Report and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this Quarterly Report should be read in conjunction with the Company’s 2022 Annual Report. |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE 3. Stock-Based Compensation The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the first quarter of each of fiscal 2023 and 2022: 2023 2022 Selling, general and administrative expenses $ 11,772 $ 10,563 Product development expenses 1,558 2,060 Total share-based compensation expense before taxes $ 13,330 $ 12,623 As of December 24, 2022, there was $75,759 of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of December 24, 2022, the weighted average period over which the compensation expense is expected to be recognized is 2.9 years. On May 6, 2021 the Company adopted the 2021 Equity Incentive Plan (the “Plan”). The Plan authorizes the issuance of up to 300,000 shares. The Plan has not been approved by shareholders and allows for non-qualified stock option grants, stock appreciation rights (SARS), restricted stock and stock units and other stock and stock based awards. There were 28,000 shares outstanding at December 24, 2022. Vesting periods are at the discretion of the Board of Directors and typically range between zero five ten The Technical Communications Corporation 2005 Non-Statutory Stock Option Plan and 2010 Equity Incentive Plan are expired as of December 24, 2022 and options are no longer available for grant thereunder, although vested, unexercised options under such plans remain outstanding. There were an aggregate of 600,000 shares authorized for issuance under these plans, of which options to purchase 136,900 shares were outstanding at December 24, 2022. Vesting periods are at the discretion of the Board of Directors and typically range between zero five ten The following table summarizes stock option activity during the first three months of fiscal 2023: Options Outstanding Number of Shares Weighted Average Weighted Average Contractual Life Unvested Vested Total Exercise Price (in years) Outstanding, September 24, 2022 56,700 108,200 164,900 $ 3.45 5.98 Grants - - - - - Vested - - - Cancellations/forfeitures - - - - Outstanding, December 24, 2022 56,700 108,200 164,900 $ 3.45 5.73 Information related to the stock options vested and expected to vest as of December 24, 2022 is as follows: Range of Exercise Prices Number of Shares Weighted-Average Remaining Contractual Life (years) Weighted Average Exercise Price Exercisable Number of Shares Exercisable Weighted- Average Exercise Price $1.01 - $2.00 48,000 8.32 $ 1.80 12,000 $ 1.87 $2.01 - $3.00 34,300 5.17 2.61 25,900 2.65 $3.01 - $4.00 43,500 6.34 3.60 33,300 3.60 $4.01 - $5.00 16,600 1.50 4.34 16,600 4.34 $5.01 - $10.00 22,500 3.02 7.36 20,400 7.37 164,900 5.73 $ 3.45 108,200 $ 4.00 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 24, 2022 and December 25, 2021 was $0 and $1,040, respectively. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. |
Note 4 - Revenue
Note 4 - Revenue | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 4. Revenue The following table presents the Company’s revenues disaggregated by revenue type for the first three months of fiscal 2023 and 2022. Revenue type: 2023 2022 Engineering services $ - $ 343,701 Equipment sales 121,537 79,780 Total $ 121,537 $ 423,481 Engineering services revenue consists of funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. The Company also derives revenue from developing and designing custom cryptographic solutions for customers’ unique secure voice, data and video communications requirements and integrating such solutions into existing systems. These contracts can vary but typically call for fixed monthly payments or payments due upon meeting certain milestones. Customers are billed monthly or upon achieving the milestone and payments are due on a net basis after the billing date. Equipment sales revenue consists of sales of communications security equipment for voice, data, facsimile and video networks for military, government and corporate/industrial applications. Equipment sales are billed to the customer upon shipment with typical payment terms requiring a down payment at the time of order with the balance due prior to shipment. For government and certain long term customers, we may grant net payment terms. |
Note 5 - Inventories
Note 5 - Inventories | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5. Inventories Inventories consisted of the following: December 24, 2022 September 24, 2022 Finished goods $ - $ - Work in process 478,375 489,854 Raw materials 493,708 476,331 Total inventory, net $ 972,083 $ 966,185 |
Note 6 - Leases
Note 6 - Leases | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE 6. Leases The Company leases space from a third party for all manufacturing, research and development, and corporate operations. The initial term of the lease was for five years through March 31, 2019 at an annual rate of $170,603. In addition, the lease contains options to extend the lease for two and one-half years through September 30, 2021 and another two The table below presents the maturity of the Company’s operating lease liability as of December 24, 2022: 2023 127,952 2024 85,301 Total lease payments 213,253 Less: Imputed interest (5,238 ) Total lease liability $ 208,015 |
Note 7 - Debt
Note 7 - Debt | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 7. Debt On August 10, 2020, the Company also was granted a loan (the “SBA Loan”) from the SBA in the principal amount of $150,000 pursuant to the Economic Injury Disaster Loan program. The SBA Loan, which is evidenced by a Promissory Note dated August 10, 2020, is payable in monthly installments of $731, including principal and interest, over 30 years at an interest rate of 3.75% per year. The SBA Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The proceeds from this loan must be used solely as working capital to alleviate economic injury caused by the Covid-19 pandemic. Although originally repayable commencing one year after grant, on March 15, 2022 the SBA announced that payments on the SBA Loan would be deferred an additional six months. The Company initiated making monthly payments in December 2022. As part of the SBA Loan, the Company granted the SBA a continuing security interest in and to any and all “Collateral” to secure payment and performance of all debts, liabilities and obligations of the Company to the SBA under the SBA Loan. The Collateral includes all tangible and intangible personal property that the Company owns or acquires or creates immediately upon the acquisition or creation thereof, including, but not limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes, (d) chattel paper, including tangible chattel paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts, including health-care insurance receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims, (j) general intangibles, including payment intangibles and software, and (k) as-extracted collateral, in each case as such terms may from time to time be defined in the Uniform Commercial Code. The aggregate amounts of principal maturities of long-term debt for the following fiscal years are: 2023 $ 3,023 2024 3,138 2025 3,257 2026 3,382 2027 3,511 Thereafter 133,443 $ 149,754 On August 4, 2022, the Company issued an amended and restated demand promissory note in the principal amount of up to $4,000,000 in favor of Carl H. Guild, Jr. Mr. Guild, the Company’s Chief Executive Officer, President and Chairman of the Board, loaned the money to the Company to provide working capital. The $4,000,000 consists of $1,000,000 previously loaned to the Company at an interest rate of 6% and $2,000,000 previously loaned to the Company at an interest rate of 7.5% and an additional $1,000,000 at an interest rate of 7.5%. The additional funds will be available to the Company to borrow from Mr. Guild on a revolving basis and the loan has no specified term year and may be prepaid at any time without premium or penalty. The outstanding principal balance at December 24, 2022 was $3,725,000, plus accrued interest of $167,000. An interest payment of approximately $30,000 was made in January of 2022. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 8. Income Taxes The Company has not Under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) the Company is entitled to Employee Retention Credits for parts of its fiscal 2020 and 2021 years. The Company has filed amended Employer’s Quarterly Federal Tax returns to apply for these credits. As a result the Company is entitled to $515,966 in credits of which $17,823 was received during Q1 of fiscal 2023. The Company expects to receive the remainder of the refunds from the IRS in fiscal 2023. |
Note 9 - Loss Per Share
Note 9 - Loss Per Share | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 9. 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 as follows: 164,900 shares at December 24, 2022 and 143,900 shares at December 25, 2021. |
Note 10 - Major Customers and E
Note 10 - Major Customers and Export Sales | 3 Months Ended |
Dec. 24, 2022 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 10. Major Customers and Export Sales During the three months ended December 24, 2022, the Company had two two one A breakdown of foreign and domestic net revenue for first three months of fiscal 2023 and 2022 is as follows: 2023 2022 Domestic $ 94,617 $ 343,701 Foreign 26,920 79,780 Total net revenue $ 121,537 $ 423,481 The Company sold products into one 2023 2022 Saudi Arabia 100 % 100 % A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, for the first quarter of fiscal 2023 and 2022 is as follows: 2023 2022 Mid-East and Africa 100 % 100 % |
Note 3 - Stock-based Compensa_2
Note 3 - Stock-based Compensation (Tables) | 3 Months Ended |
Dec. 24, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | 2023 2022 Selling, general and administrative expenses $ 11,772 $ 10,563 Product development expenses 1,558 2,060 Total share-based compensation expense before taxes $ 13,330 $ 12,623 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Options Outstanding Number of Shares Weighted Average Weighted Average Contractual Life Unvested Vested Total Exercise Price (in years) Outstanding, September 24, 2022 56,700 108,200 164,900 $ 3.45 5.98 Grants - - - - - Vested - - - Cancellations/forfeitures - - - - Outstanding, December 24, 2022 56,700 108,200 164,900 $ 3.45 5.73 |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Range of Exercise Prices Number of Shares Weighted-Average Remaining Contractual Life (years) Weighted Average Exercise Price Exercisable Number of Shares Exercisable Weighted- Average Exercise Price $1.01 - $2.00 48,000 8.32 $ 1.80 12,000 $ 1.87 $2.01 - $3.00 34,300 5.17 2.61 25,900 2.65 $3.01 - $4.00 43,500 6.34 3.60 33,300 3.60 $4.01 - $5.00 16,600 1.50 4.34 16,600 4.34 $5.01 - $10.00 22,500 3.02 7.36 20,400 7.37 164,900 5.73 $ 3.45 108,200 $ 4.00 |
Note 4 - Revenue (Tables)
Note 4 - Revenue (Tables) | 3 Months Ended |
Dec. 24, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | 2023 2022 Engineering services $ - $ 343,701 Equipment sales 121,537 79,780 Total $ 121,537 $ 423,481 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 3 Months Ended |
Dec. 24, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 24, 2022 September 24, 2022 Finished goods $ - $ - Work in process 478,375 489,854 Raw materials 493,708 476,331 Total inventory, net $ 972,083 $ 966,185 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 3 Months Ended |
Dec. 24, 2022 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 2023 127,952 2024 85,301 Total lease payments 213,253 Less: Imputed interest (5,238 ) Total lease liability $ 208,015 |
Note 7 - Debt (Tables)
Note 7 - Debt (Tables) | 3 Months Ended |
Dec. 24, 2022 | |
Notes Tables | |
Schedule of Maturities of Long-Term Debt [Table Text Block] | 2023 $ 3,023 2024 3,138 2025 3,257 2026 3,382 2027 3,511 Thereafter 133,443 $ 149,754 |
Note 10 - Major Customers and_2
Note 10 - Major Customers and Export Sales (Tables) | 3 Months Ended |
Dec. 24, 2022 | |
Notes Tables | |
Revenue from External Customers by Geographic Areas [Table Text Block] | 2023 2022 Domestic $ 94,617 $ 343,701 Foreign 26,920 79,780 Total net revenue $ 121,537 $ 423,481 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | 2023 2022 Saudi Arabia 100 % 100 % 2023 2022 Mid-East and Africa 100 % 100 % |
Note 1 - Description of the B_2
Note 1 - Description of the Business and Basis of Presentation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 10, 2020 | Jan. 31, 2022 | Dec. 24, 2022 | Dec. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | Sep. 28, 2019 | Aug. 04, 2022 | Nov. 18, 2021 | May 06, 2021 | |
Net Income (Loss) Attributable to Parent, Total | $ 848,600 | $ 613,361 | $ 2,331,139 | $ 1,088,386 | $ 910,650 | $ (631,426) | |||||
Net Income (Loss) Attributable to Parent, Total | (848,600) | (613,361) | (2,331,139) | $ (1,088,386) | $ (910,650) | $ 631,426 | |||||
Retained Earnings (Accumulated Deficit), Total | 7,333,706 | $ 6,485,106 | |||||||||
Proceeds from Issuance of Long-Term Debt, Total | 725,000 | $ 150,000 | |||||||||
Previously Loaned Promissory Note 3 [Member] | |||||||||||
Notes Payable, Total | 1,000,000 | ||||||||||
The S B A Loan [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | |||||||||
Proceeds from Issuance of Long-Term Debt, Total | $ 150,000 | $ 150,000 | |||||||||
Debt Instrument, Term | 30 years | 30 years | |||||||||
Mr. Carl H. Guild [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000,000,000 | ||||||||||
Notes Payable, Total | 3,725,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6% | ||||||||||
Interest Payable | $ 167,000 | ||||||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 30,000 | ||||||||||
Mr. Carl H. Guild [Member] | Demand Promissory Note [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | ||||||||||
Notes Payable, Total | 4,000,000 | ||||||||||
Mr. Carl H. Guild [Member] | Previously Loaned Promissory Note 1 [Member] | |||||||||||
Notes Payable, Total | $ 1,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6% | ||||||||||
Mr. Carl H. Guild [Member] | Previously Loaned Promissory Note 2 [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 750% | ||||||||||
Mr. Carl H. Guild [Member] | Previously Loaned Promissory Note 3 [Member] | |||||||||||
Notes Payable, Total | $ 1,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% |
Note 3 - Stock-based Compensa_3
Note 3 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | |||
Dec. 24, 2022 | Sep. 24, 2022 | Dec. 25, 2021 | May 06, 2021 | |
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 75,759 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 164,900 | 164,900 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 1,040 | ||
Equity Incentive Plan 2021 [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 300,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 28,000 | |||
The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member] | ||||
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, Outstanding, Number, Ending Balance | 136,900 | |||
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 10 months 24 days | |||
Share-Based Payment Arrangement, Option [Member] | Equity Incentive Plan 2021 [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 10 years | |||
Share-Based Payment Arrangement, Option [Member] | Equity Incentive Plan 2021 [Member] | Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 0 years | |||
Share-Based Payment Arrangement, Option [Member] | Equity Incentive Plan 2021 [Member] | Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 5 years | |||
Share-Based Payment Arrangement, Option [Member] | The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 10 years | |||
Share-Based Payment Arrangement, Option [Member] | The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member] | Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 0 years | |||
Share-Based Payment Arrangement, Option [Member] | The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 5 years |
Note 3 - Stock-based Compensa_4
Note 3 - Stock-based Compensation - Stock-based Compensation Costs (Details) - USD ($) | 3 Months Ended | |
Dec. 24, 2022 | Dec. 25, 2021 | |
Stock-based compensation costs | $ 13,330 | $ 12,623 |
Selling, General and Administrative Expenses [Member] | ||
Stock-based compensation costs | 11,772 | 10,563 |
Product Development Expenses [Member] | ||
Stock-based compensation costs | $ 1,558 | $ 2,060 |
Note 3 - Stock-based Compensa_5
Note 3 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Dec. 24, 2022 | Sep. 24, 2022 | |
Number of shares, unvested (in shares) | 56,700 | |
Number of shares, vested (in shares) | 108,200 | |
Number of shares (in shares) | 164,900 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.45 | |
Outstanding, weighted average contractual life (Year) | 5 years 8 months 23 days | 5 years 11 months 23 days |
Number of shares, unvested (in shares) | 56,700 | 56,700 |
Number of shares, vested (in shares) | 108,200 | 108,200 |
Number of shares (in shares) | 164,900 | 164,900 |
Note 3 - Stock Based Compensati
Note 3 - Stock Based Compensation - Information Related to Stock Options (Details) | 3 Months Ended |
Dec. 24, 2022 $ / shares shares | |
Number of shares (in shares) | shares | 164,900 |
Weighted-average remaining contractual life (Year) | 5 years 8 months 23 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.45 |
Exercisable number of shares (in shares) | shares | 108,200 |
Exercisable weighted-average exercise price (in dollars per share) | $ 4 |
Range 1 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 1.01 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 2 |
Number of shares (in shares) | shares | 48,000 |
Weighted-average remaining contractual life (Year) | 8 years 3 months 25 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.80 |
Exercisable number of shares (in shares) | shares | 12,000 |
Exercisable weighted-average exercise price (in dollars per share) | $ 1.87 |
Range 2 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 2.01 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 3 |
Number of shares (in shares) | shares | 34,300 |
Weighted-average remaining contractual life (Year) | 5 years 2 months 1 day |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.61 |
Exercisable number of shares (in shares) | shares | 25,900 |
Exercisable weighted-average exercise price (in dollars per share) | $ 2.65 |
Range 3 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 3.01 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 4 |
Number of shares (in shares) | shares | 43,500 |
Weighted-average remaining contractual life (Year) | 6 years 4 months 2 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.60 |
Exercisable number of shares (in shares) | shares | 33,300 |
Exercisable weighted-average exercise price (in dollars per share) | $ 3.60 |
Range 4 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 4.01 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 5 |
Number of shares (in shares) | shares | 16,600 |
Weighted-average remaining contractual life (Year) | 1 year 6 months |
Outstanding, weighted average exercise price (in dollars per share) | $ 4.34 |
Exercisable number of shares (in shares) | shares | 16,600 |
Exercisable weighted-average exercise price (in dollars per share) | $ 4.34 |
Range 5 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 5.01 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 10 |
Number of shares (in shares) | shares | 22,500 |
Weighted-average remaining contractual life (Year) | 3 years 7 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 7.36 |
Exercisable number of shares (in shares) | shares | 20,400 |
Exercisable weighted-average exercise price (in dollars per share) | $ 7.37 |
Note 4 - Revenue - Disaggregati
Note 4 - Revenue - Disaggregation By Revenue Type (Details) - USD ($) | 3 Months Ended | |
Dec. 24, 2022 | Dec. 25, 2021 | |
Net revenue | $ 121,537 | $ 423,481 |
Engineering Services [Member] | ||
Net revenue | 0 | 343,701 |
Equipment Sales [Member] | ||
Net revenue | $ 121,537 | $ 79,780 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) | Dec. 24, 2022 | Sep. 24, 2022 |
Finished goods | $ 0 | $ 0 |
Work in process | 478,375 | 489,854 |
Raw materials | 493,708 | 476,331 |
Total inventory, net | $ 972,083 | $ 966,185 |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) - USD ($) | 3 Months Ended | 18 Months Ended | 42 Months Ended | ||
Dec. 24, 2022 | Dec. 25, 2021 | Sep. 24, 2022 | Sep. 24, 2022 | Sep. 30, 2021 | |
Lease Annual Rent Payments | $ 170,603 | ||||
Lessee, Operating Lease, Renewal Term (Year) | 2 years 6 months | ||||
Operating Lease, Expense | $ 42,651 | $ 42,651 | $ 170,603 |
Note 6 - Leases - Maturity of O
Note 6 - Leases - Maturity of Operating Lease Liability (Details) | Jun. 25, 2022 USD ($) |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 127,952 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 85,301 |
Total lease payments | 213,253 |
Less: Imputed interest | (5,238) |
Total lease liability | $ 208,015 |
Note 7 - Debt (Details Textual)
Note 7 - Debt (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Aug. 10, 2020 | Jan. 31, 2022 | Sep. 26, 2020 | Dec. 24, 2022 | Aug. 04, 2022 | Apr. 07, 2022 | Nov. 18, 2021 | May 06, 2021 | |
Mr. Carl H. Guild [Member] | ||||||||
Notes Payable, Total | $ 3,725,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity Before Interest Rate Increase | $ 1,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6% | |||||||
Interest Payable, Current | 167,000 | |||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 30,000 | |||||||
Mr. Carl H. Guild [Member] | Advances Beyond Initial One Million [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |||||||
Amended and Restated LOC, Mr. Carl H. Guild [Member] | ||||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 30,000 | |||||||
The S B A Loan [Member] | ||||||||
Debt Instrument, Periodic Payment, Total | $ 731 | |||||||
Debt Instrument, Term | 30 years | 30 years | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | ||||||
Demand Promissory Note [Member] | Mr. Carl H. Guild [Member] | ||||||||
Notes Payable, Total | $ 4,000,000 | |||||||
Previously Loaned Promissory Note 3 [Member] | ||||||||
Notes Payable, Total | $ 1,000,000 | |||||||
Previously Loaned Promissory Note 3 [Member] | Mr. Carl H. Guild [Member] | ||||||||
Notes Payable, Total | $ 1,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% |
Note 7 - Debt - Principal Matur
Note 7 - Debt - Principal Maturities of Long-term Debt (Details) | Dec. 31, 2022 USD ($) |
2023 | $ 3,023 |
2024 | 3,138 |
2025 | 3,257 |
2026 | 3,382 |
2027 | 3,511 |
Thereafter | 133,443 |
Long-Term Debt, Total | $ 149,754 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 24, 2022 | Dec. 25, 2021 | Sep. 24, 2022 | |
Income Tax Expense (Benefit), Total | $ 0 | $ 0 | |
Grants Receivable, Current | 498,143 | $ 515,966 | |
Proceeds from Employee Retention Credits | 17,823 | ||
CARES Act [Member] | |||
Grants Receivable, Current | $ 515,966 |
Note 9 - Loss Per Share (Detail
Note 9 - Loss Per Share (Details Textual) - shares | 3 Months Ended | |
Dec. 24, 2022 | Dec. 25, 2021 | |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 164,900 | 143,900 |
Note 10 - Major Customers and_3
Note 10 - Major Customers and Export Sales (Details Textual) | 3 Months Ended | ||
Dec. 24, 2022 | Jun. 25, 2022 | Dec. 25, 2021 | |
Number of Countries in Which Products are Sold | 1 | 1 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Number of Major Customers | 2 | 2 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member] | |||
Concentration Risk, Percentage | 94% | 100% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member] | |||
Concentration Risk, Percentage | 73% | 89% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Two [Member] | |||
Concentration Risk, Percentage | 21% | 11% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member] | |||
Number of Major Customers | 1 |
Note 10 - Major Customers and_4
Note 10 - Major Customers and Export Sales - Foreign and Domestic Net Revenue 2 (Details) - USD ($) | 3 Months Ended | |
Dec. 24, 2022 | Dec. 25, 2021 | |
Net revenue | $ 121,537 | $ 423,481 |
UNITED STATES | ||
Net revenue | 94,617 | 343,701 |
Non-US [Member] | ||
Net revenue | $ 26,920 | $ 79,780 |
Note 10 - Major Customers and_5
Note 10 - Major Customers and Export Sales - Foreign Revenue (Details) | 3 Months Ended | ||
Dec. 24, 2022 | Dec. 24, 2022 | Dec. 25, 2021 | |
SAUDI ARABIA | |||
Foreign revenue by country | 100% | 100% | |
Mid-East and Africa [Member] | |||
Foreign revenue by geographical area | 100% | 100% |