Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 02, 2016 | Feb. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TCCO | |
Entity Registrant Name | TECHNICAL COMMUNICATIONS CORP | |
Entity Central Index Key | 96,699 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,839,877 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 02, 2016 | Oct. 03, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 1,333,750 | $ 2,276,511 |
Restricted cash | 363,358 | 363,358 |
Marketable securities - held to maturity | 206,376 | 307,673 |
Accounts receivable - trade | 2,360,937 | 1,790,856 |
Inventories, net | 1,896,762 | 1,850,885 |
Cost method investment | 275,000 | |
Other current assets | 91,015 | 132,792 |
Total current assets | 6,527,198 | 6,722,075 |
Marketable securities - held to maturity | 755,469 | 761,842 |
Equipment and leasehold improvements | 4,480,343 | 4,480,343 |
Less: accumulated depreciation and amortization | (4,269,821) | (4,223,497) |
Equipment and leasehold improvements, net | 210,522 | 256,846 |
Cost method investment | 275,000 | |
Total Assets | 7,493,189 | 8,015,763 |
Current Liabilities: | ||
Accounts payable | 98,892 | 179,584 |
Accrued liabilities: | ||
Accrued compensation and related expenses | 176,909 | 244,290 |
Customer deposits | 67,807 | 41,220 |
Other current liabilities | 147,555 | 136,810 |
Income taxes payable | 43,261 | 41,117 |
Total current liabilities | $ 534,424 | $ 643,021 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Common stock, par value $0.10 per share; 7,000,000 shares authorized; 1,839,877 shares issued and outstanding at January 2, 2016 and October 3, 2015 | $ 183,988 | $ 183,988 |
Additional paid-in capital | 4,113,913 | 4,110,096 |
Retained earnings | 2,660,864 | 3,078,658 |
Total stockholders' equity | 6,958,765 | 7,372,742 |
Total Liabilities and Stockholders' Equity | $ 7,493,189 | $ 8,015,763 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 02, 2016 | Oct. 03, 2015 |
Statement of Financial Position [Abstract] | ||
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 (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 979,402 | $ 883,146 |
Cost of sales | 412,577 | 271,031 |
Gross profit | 566,825 | 612,115 |
Operating expenses: | ||
Selling, general and administrative | 684,451 | 756,026 |
Product development | 303,580 | 589,565 |
Total operating expenses | 988,031 | 1,345,591 |
Operating loss | (421,206) | (733,476) |
Other income: | ||
Interest income | 3,412 | 5,895 |
Loss before provision for (benefit from) income taxes | (417,794) | (727,581) |
Provision for (benefit from) income taxes | 0 | 0 |
Net loss | $ (417,794) | $ (727,581) |
Net loss per common share: | ||
Basic | $ (0.23) | $ (0.40) |
Diluted | $ (0.23) | $ (0.40) |
Weighted average shares: | ||
Basic | 1,839,877 | 1,838,921 |
Diluted | 1,839,877 | 1,838,921 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (417,794) | $ (727,581) |
Unrealized gain on available for sale securities, net of tax | 1,981 | |
Comprehensive loss | $ (417,794) | $ (725,600) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Operating Activities: | ||
Net loss | $ (417,794) | $ (727,581) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 46,324 | 51,735 |
Stock-based compensation | 3,817 | 37,295 |
Amortization of premium on held to maturity securities | 7,670 | 9,880 |
Changes in certain operating assets and liabilities: | ||
Accounts receivable | (570,081) | (382,639) |
Inventories | (45,877) | (365,202) |
Other current assets | 41,777 | 57,193 |
Customer deposits | 26,587 | (8,296) |
Accounts payable and other accrued liabilities | (135,184) | 241,562 |
Net cash used in operating activities | (1,042,761) | (1,086,053) |
Investing Activities: | ||
Purchase of cost method investment | (275,000) | |
Proceeds from maturities of marketable securities | 100,000 | |
Net cash provided by (used in) investing activities | 100,000 | (275,000) |
Net decrease in cash and cash equivalents | (942,761) | (1,361,053) |
Cash and cash equivalents at beginning of the period | 2,276,511 | 3,210,237 |
Cash and cash equivalents at end of the period | 1,333,750 | 1,849,184 |
Supplemental Disclosures: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 1,856 | $ 982 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Significant Judgments and Estimates | 3 Months Ended |
Jan. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies and Significant Judgments and Estimates | NOTE 1. Summary of Significant Accounting Policies and Significant Judgments and Estimates Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The discussion and analysis of our financial condition and results of operations are based on our 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. The accounting policies that management believes are most critical to aid in fully understanding and evaluating our reported financial results include the following: Revenue Recognition Product revenue is recognized 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 we have 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 for which 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 exists, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. We provide for a warranty reserve at the time the product revenue is recognized. We perform 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 cost 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 date to the total estimated costs for the contract. In each type of contract, we receive periodic progress payments or payments upon reaching interim milestones, and we retain the rights to the intellectual property developed in government contracts. All payments to TCC for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency. Adjustments are recognized in the period made. There have been no government 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. When 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. Inventories We value our 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 the estimated selling prices, less the cost to sell) of the inventory. We periodically review inventory quantities on hand and record 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 future demand. It is possible that additional reserves above those already established may be required in the future if market conditions for our products should deteriorate. Accounts Receivable Accounts receivable are reduced by an allowance for amounts that 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. While management believes the allowance to be adequate, if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required, which would reduce net income. In addition, if the Company becomes aware of a customer’s inability to meet its financial obligations, a specific write-off is recorded in that amount. Accounting for Income Taxes The preparation of our unaudited consolidated financial statements requires us to estimate our income taxes in each of the jurisdictions in which we operate, including those outside the United States, which may subject the Company to certain risks that ordinarily would not be expected in the United States. The income tax accounting process involves estimating our actual current exposure together with assessing temporary differences resulting from differing treatments of items, such as inventory obsolescence and stock-based compensation, for tax and accounting purposes. These differences result in the recognition of deferred tax assets and liabilities. We must then record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. At January 2, 2016 and October 3, 2015, we recorded a full valuation allowance against our net deferred tax assets of approximately $3.0 million due to uncertainties related to our ability to realize these assets. The valuation allowance is based on our estimates of taxable income by jurisdiction and the period over which our deferred tax assets will be recoverable. In the event that actual results differ from these estimates or we adjust these estimates in future periods, we may need to adjust our valuation allowance, which could materially impact our financial position and results of operations. The Company follows FASB ASC 740-10 relative to uncertain tax positions. This standard provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-not in order for those tax positions to be recognized in the financial statements. As of January 2, 2016 and October 3, 2015, the Company had uncertain tax positions, relating to research credits taken on a prior year state tax return of $45,631. Due to the nature of our 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, and it is not anticipated that we will be subject to foreign taxes in the near future. Fair Value Measurements In determining fair value measurements,the Company follows the provisions of FASB ASC 820, Fair Value Measurements and Disclosures The three-level hierarchy is as follows: 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 or 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 or 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’s 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 investment. The Company’s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds issued by municipalities within the United States. The value of these securities is disclosed in Note 6. The Company also holds money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value. 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 money market 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 three month period ended January 2, 2016 and the year ended October 3, 2015, there were no transfers between levels. As of January 2, 2016 and October 3, 2015, the Company did not hold any assets or liabilities measured at fair value on a recurring basis classified as Level 2 or Level 3. At January 2, 2016 and October 3, 2015, the Level 1 assets measured at fair value consisted of money market funds valued at $745,895 and $1,385,201, respectively. There were no assets or liabilities measured at fair value on a nonrecurring basis at January 2, 2016 or October 3, 2015. 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 participant’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. There were no excess tax benefits recorded during the three month periods ended January 2, 2016 and December 27, 2014. 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 share-based compensation. There were no options granted during the three month periods ended January 2, 2016 and December 27, 2014. The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the three month periods ended January 2, 2016 and December 27, 2014: 2016 2014 Cost of sales $ — $ 4,049 Selling, general and administrative expenses 2,449 11,977 Product development expenses 1,368 21,269 Total share-based compensation expense before taxes $ 3,817 $ 37,295 As of January 2, 2016 and December 27, 2014, there was $34,390 and $103,918, respectively, of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of January 2, 2016, the weighted average period over which the compensation expense is expected to be recognized is 4.2 years. The Company had stock options outstanding under the following stock option plans as of January 2, 2016: the 2001 Stock Option Plan, the 2005 Non-Statutory Stock Option Plan and the 2010 Equity Incentive Plan. There were options to purchase an aggregate 243,981 shares outstanding under such plans at January 2, 2016. Vesting periods for options 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 market value at time of grant and have a term of ten years from the date of grant. As of January 2, 2016, there were no shares available for new option grants under the 2001 Stock Option Plan and the 2005 Non-Statutory Stock Option Plan; there were 60,019 shares available for grant under the 2010 Equity Incentive Plan. The following table summarizes stock option activity during the first three months of fiscal 2016: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Unvested Vested Total Outstanding, October 3, 2015 18,060 236,921 254,981 $ 8.49 4.83 years Grants — — — Vested (740 ) 740 — 11.61 Exercises — — — Cancellations/forfeitures (600 ) (10,400 ) (11,000 ) 3.22 Outstanding, January 2, 2016 16,720 227,261 243,981 $ 8.73 4.76 years Information related to the stock options vested and expected to vest as of January 2, 2016 is as follows: Range of Exercise Prices Number of Weighted-Average Weighted Exercisable Exercisable $3.01 - $4.00 16,600 0.56 $ 3.66 16,600 $ 3.66 $4.01 - $5.00 42,000 6.64 $ 4.54 27,100 $ 4.78 $5.01 - $10.00 61,600 4.66 $ 7.57 59,780 $ 7.59 $10.01 - $15.00 123,781 4.73 $ 11.41 123,781 $ 11.41 243,981 4.76 $ 8.73 227,261 $ 9.05 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of January 2, 2016 and October 3, 2015 was $0. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. |
Inventories
Inventories | 3 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 2. Inventories Inventories consisted of the following: January 2, 2016 October 3, 2015 Finished goods $ 8,015 $ 8,015 Work in process 419,459 662,575 Raw materials 1,469,288 1,180,295 $ 1,896,762 $ 1,850,885 |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 3. Income Taxes The Company has not recorded an income tax benefit on its net loss for the three month periods ended January 2, 2016 and December 27, 2014 due to its uncertain realizability. During previous fiscal years, the Company recorded a valuation allowance for the full amount of its net deferred tax assets since it could not predict the realization of these assets. In prior years, the Company recorded a provision for uncertain tax positions. As of January 2, 2016 and October 3, 2015, the Company had uncertain tax positions, relating to research credits taken on a prior year state tax return of $45,631. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Jan. 02, 2016 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 4. 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: 243,981 shares at January 2, 2016 and 269,485 shares at December 27, 2014. |
Major Customers and Export Sale
Major Customers and Export Sales | 3 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Major Customers and Export Sales | NOTE 5. Major Customers and Export Sales During the three months ended January 2, 2016, the Company had two customers that represented 87% (47% and 40%, respectively) of net sales as compared to the three months ended December 27, 2014, during which two customers represented 72% (60% and 12%, respectively) of net sales. A breakdown of foreign and domestic net sales for the three month periods ended January 2, 2016 and December 27, 2014 is as follows: Fiscal Year 2016 2015 Domestic $ 896,865 $ 764,746 Foreign 82,537 118,400 Total sales $ 979,402 $ 883,146 The Company sold products into two countries during the three month period ended January 2, 2016 and four countries during the three month period ended December 27, 2014. 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. Fiscal Year 2016 2015 Saudi Arabia 54 % — Egypt 46 % 30 % Taiwan — 64 % Other — 6 % A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, is as follows: Fiscal Year 2016 2015 Mid-East and Africa 100 % 36 % Far East — 64 % |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 3 Months Ended |
Jan. 02, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Marketable Securities | NOTE 6. 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. 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, Investments—Debt 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 January 2, 2016, available for sale securities consisted of the following: Gross Unrealized Estimated Cost Gains Losses Fair Value Money market mutual funds $ 745,985 $ — $ — $ 745,985 As of January 2, 2016, held to maturity securities consisted of the following: Cost Accrued Amortization Amortized Unrealized Estimated Municipal bonds $ 1,052,480 $ 15,417 $ 106,052 $ 961,845 $ 5,170 $ 967,015 As of October 3, 2015, available for sale securities consisted of the following: Gross Unrealized Estimated Cost Gains Losses Fair Value Money market mutual funds $ 1,385,201 $ — $ — $ 1,385,201 As of October 3, 2015, held to maturity securities consisted of the following: Accrued Interest Amortization Bond Premium Amortized Cost Unrealized Gains Estimated Fair Value Cost Municipal bonds $ 1,166,857 $ 14,367 $ 111,709 $ 1,069,515 $ 9,210 $ 1,078,725 The contractual maturities of held to maturity investments as of January 2, 2016 were as follows: Cost Amortized Cost Within 1 year $ 228,750 $ 206,376 After 1 year through 5 years 823,730 755,469 $ 1,052,480 $ 961,845 The Company’s available for sale securities were included in cash and cash equivalents at January 2, 2016 and October 3, 2015. |
Cost Method Investment
Cost Method Investment | 3 Months Ended |
Jan. 02, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cost Method Investment | NOTE 7 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. Our investment represents a 10.8% ownership stake in PulsedLight, Inc. and is accounted for utilizing the cost method of accounting. On January 12, 2016, the Company entered into an agreement to sell its shares in PulsedLight, Inc. 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. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies and Significant Judgments and Estimates (Policies) | 3 Months Ended |
Jan. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The discussion and analysis of our financial condition and results of operations are based on our 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. |
Revenue Recognition | Revenue Recognition Product revenue is recognized 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 we have 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 for which 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 exists, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. We provide for a warranty reserve at the time the product revenue is recognized. We perform 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 cost 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 date to the total estimated costs for the contract. In each type of contract, we receive periodic progress payments or payments upon reaching interim milestones, and we retain the rights to the intellectual property developed in government contracts. All payments to TCC for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency. Adjustments are recognized in the period made. There have been no government 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. When 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. |
Inventories | Inventories We value our 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 the estimated selling prices, less the cost to sell) of the inventory. We periodically review inventory quantities on hand and record 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 future demand. It is possible that additional reserves above those already established may be required in the future if market conditions for our products should deteriorate. |
Accounts Receivable | Accounts Receivable Accounts receivable are reduced by an allowance for amounts that 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. While management believes the allowance to be adequate, if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required, which would reduce net income. In addition, if the Company becomes aware of a customer’s inability to meet its financial obligations, a specific write-off is recorded in that amount. |
Accounting for Income Taxes | Accounting for Income Taxes The preparation of our unaudited consolidated financial statements requires us to estimate our income taxes in each of the jurisdictions in which we operate, including those outside the United States, which may subject the Company to certain risks that ordinarily would not be expected in the United States. The income tax accounting process involves estimating our actual current exposure together with assessing temporary differences resulting from differing treatments of items, such as inventory obsolescence and stock-based compensation, for tax and accounting purposes. These differences result in the recognition of deferred tax assets and liabilities. We must then record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. At January 2, 2016 and October 3, 2015, we recorded a full valuation allowance against our net deferred tax assets of approximately $3.0 million due to uncertainties related to our ability to realize these assets. The valuation allowance is based on our estimates of taxable income by jurisdiction and the period over which our deferred tax assets will be recoverable. In the event that actual results differ from these estimates or we adjust these estimates in future periods, we may need to adjust our valuation allowance, which could materially impact our financial position and results of operations. The Company follows FASB ASC 740-10 relative to uncertain tax positions. This standard provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-not in order for those tax positions to be recognized in the financial statements. As of January 2, 2016 and October 3, 2015, the Company had uncertain tax positions, relating to research credits taken on a prior year state tax return of $45,631. Due to the nature of our 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, and it is not anticipated that we will be subject to foreign taxes in the near future. |
Fair Value Measurements | Fair Value Measurements In determining fair value measurements,the Company follows the provisions of FASB ASC 820, Fair Value Measurements and Disclosures The three-level hierarchy is as follows: 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 or 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 or 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’s 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 investment. The Company’s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds issued by municipalities within the United States. The value of these securities is disclosed in Note 6. The Company also holds money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value. 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 money market 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 three month period ended January 2, 2016 and the year ended October 3, 2015, there were no transfers between levels. As of January 2, 2016 and October 3, 2015, the Company did not hold any assets or liabilities measured at fair value on a recurring basis classified as Level 2 or Level 3. At January 2, 2016 and October 3, 2015, the Level 1 assets measured at fair value consisted of money market funds valued at $745,895 and $1,385,201, respectively. There were no assets or liabilities measured at fair value on a nonrecurring basis at January 2, 2016 or October 3, 2015. |
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 participant’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. There were no excess tax benefits recorded during the three month periods ended January 2, 2016 and December 27, 2014. 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 share-based compensation. There were no options granted during the three month periods ended January 2, 2016 and December 27, 2014. The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the three month periods ended January 2, 2016 and December 27, 2014: 2016 2014 Cost of sales $ — $ 4,049 Selling, general and administrative expenses 2,449 11,977 Product development expenses 1,368 21,269 Total share-based compensation expense before taxes $ 3,817 $ 37,295 As of January 2, 2016 and December 27, 2014, there was $34,390 and $103,918, respectively, of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of January 2, 2016, the weighted average period over which the compensation expense is expected to be recognized is 4.2 years. The Company had stock options outstanding under the following stock option plans as of January 2, 2016: the 2001 Stock Option Plan, the 2005 Non-Statutory Stock Option Plan and the 2010 Equity Incentive Plan. There were options to purchase an aggregate 243,981 shares outstanding under such plans at January 2, 2016. Vesting periods for options 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 market value at time of grant and have a term of ten years from the date of grant. As of January 2, 2016, there were no shares available for new option grants under the 2001 Stock Option Plan and the 2005 Non-Statutory Stock Option Plan; there were 60,019 shares available for grant under the 2010 Equity Incentive Plan. The following table summarizes stock option activity during the first three months of fiscal 2016: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Unvested Vested Total Outstanding, October 3, 2015 18,060 236,921 254,981 $ 8.49 4.83 years Grants — — — Vested (740 ) 740 — 11.61 Exercises — — — Cancellations/forfeitures (600 ) (10,400 ) (11,000 ) 3.22 Outstanding, January 2, 2016 16,720 227,261 243,981 $ 8.73 4.76 years Information related to the stock options vested and expected to vest as of January 2, 2016 is as follows: Range of Exercise Prices Number of Weighted-Average Weighted Exercisable Exercisable $3.01 - $4.00 16,600 0.56 $ 3.66 16,600 $ 3.66 $4.01 - $5.00 42,000 6.64 $ 4.54 27,100 $ 4.78 $5.01 - $10.00 61,600 4.66 $ 7.57 59,780 $ 7.59 $10.01 - $15.00 123,781 4.73 $ 11.41 123,781 $ 11.41 243,981 4.76 $ 8.73 227,261 $ 9.05 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of January 2, 2016 and October 3, 2015 was $0. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies and Significant Judgments and Estimates (Tables) | 3 Months Ended |
Jan. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Share-Based Compensation Costs | The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the three month periods ended January 2, 2016 and December 27, 2014: 2016 2014 Cost of sales $ — $ 4,049 Selling, general and administrative expenses 2,449 11,977 Product development expenses 1,368 21,269 Total share-based compensation expense before taxes $ 3,817 $ 37,295 |
Stock Option Activity | The following table summarizes stock option activity during the first three months of fiscal 2016: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Unvested Vested Total Outstanding, October 3, 2015 18,060 236,921 254,981 $ 8.49 4.83 years Grants — — — Vested (740 ) 740 — 11.61 Exercises — — — Cancellations/forfeitures (600 ) (10,400 ) (11,000 ) 3.22 Outstanding, January 2, 2016 16,720 227,261 243,981 $ 8.73 4.76 years |
Stock Options Vested or Expected to Vest | Information related to the stock options vested and expected to vest as of January 2, 2016 is as follows: Range of Exercise Prices Number of Weighted-Average Weighted Exercisable Exercisable $3.01 - $4.00 16,600 0.56 $ 3.66 16,600 $ 3.66 $4.01 - $5.00 42,000 6.64 $ 4.54 27,100 $ 4.78 $5.01 - $10.00 61,600 4.66 $ 7.57 59,780 $ 7.59 $10.01 - $15.00 123,781 4.73 $ 11.41 123,781 $ 11.41 243,981 4.76 $ 8.73 227,261 $ 9.05 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: January 2, 2016 October 3, 2015 Finished goods $ 8,015 $ 8,015 Work in process 419,459 662,575 Raw materials 1,469,288 1,180,295 $ 1,896,762 $ 1,850,885 |
Major Customers and Export Sa17
Major Customers and Export Sales (Tables) | 3 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Breakdown of Foreign and Domestic Net Sales | A breakdown of foreign and domestic net sales for the three month periods ended January 2, 2016 and December 27, 2014 is as follows: Fiscal Year 2016 2015 Domestic $ 896,865 $ 764,746 Foreign 82,537 118,400 Total sales $ 979,402 $ 883,146 |
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. Fiscal Year 2016 2015 Saudi Arabia 54 % — Egypt 46 % 30 % Taiwan — 64 % Other — 6 % |
Foreign Revenue, as Percentage of Total Foreign Revenue by Geographic Area | A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, is as follows: Fiscal Year 2016 2015 Mid-East and Africa 100 % 36 % Far East — 64 % |
Cash Equivalents and Marketab18
Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended |
Jan. 02, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Available-for-Sale Securities | As of January 2, 2016, available for sale securities consisted of the following: Gross Unrealized Estimated Cost Gains Losses Fair Value Money market mutual funds $ 745,985 $ — $ — $ 745,985 As of October 3, 2015, available for sale securities consisted of the following: Gross Unrealized Estimated Cost Gains Losses Fair Value Money market mutual funds $ 1,385,201 $ — $ — $ 1,385,201 |
Held to Maturity Securities | As of January 2, 2016, held to maturity securities consisted of the following: Cost Accrued Amortization Amortized Unrealized Estimated Municipal bonds $ 1,052,480 $ 15,417 $ 106,052 $ 961,845 $ 5,170 $ 967,015 As of October 3, 2015, held to maturity securities consisted of the following: Accrued Interest Amortization Bond Premium Amortized Cost Unrealized Gains Estimated Fair Value Cost Municipal bonds $ 1,166,857 $ 14,367 $ 111,709 $ 1,069,515 $ 9,210 $ 1,078,725 |
Contractual Maturities of Held to Maturity Investments | The contractual maturities of held to maturity investments as of January 2, 2016 were as follows: Cost Amortized Cost Within 1 year $ 228,750 $ 206,376 After 1 year through 5 years 823,730 755,469 $ 1,052,480 $ 961,845 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies and Significant Judgments and Estimates - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Jan. 02, 2016 | Dec. 27, 2014 | Oct. 03, 2015 | Jan. 02, 2015 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Expected period of revenue recognized pursuant to proportional performance | 1 year | |||
Valuation allowance for deferred tax assets | $ 3,000,000 | $ 3,000,000 | ||
Unrecognized tax benefits | $ 45,631 | 45,631 | ||
Fair value measurements, transfers between levels | 0 | 0 | ||
Fair value measurements, transfers between levels | 0 | 0 | ||
Assets measured on a nonrecurring basis | 0 | 0 | ||
Liabilities measured on a nonrecurring basis | 0 | $ 0 | ||
Excess tax benefits | $ 0 | $ 0 | ||
Number of Shares, Granted | 0 | 0 | ||
Unrecognized compensation expense related to options outstanding | $ 34,390 | $ 103,918 | ||
Weighted average period of compensation expense | 4 years 2 months 12 days | |||
Shares outstanding | 243,981 | 254,981 | ||
Fair market value term period | 10 years | |||
Intrinsic value of outstanding and exercisable options | $ 0 | $ 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Money market funds | $ 745,895 | $ 1,385,201 | ||
2001 Stock Option Plan [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Share available for grants | 0 | |||
2005 Non-Statutory Stock Option Plan [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Share available for grants | 0 | |||
2010 Equity Plan [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Share available for grants | 60,019 | |||
Minimum [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Vesting periods | 0 years | |||
Maximum [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Vesting periods | 5 years |
Summary of Significant Accoun20
Summary of Significant Accounting Policies and Significant Judgments and Estimates - Share-Based Compensation Costs (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Jan. 02, 2016 | Dec. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense before taxes | $ 3,817 | $ 37,295 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense before taxes | 4,049 | |
Selling, General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense before taxes | 2,449 | 11,977 |
Product Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense before taxes | $ 1,368 | $ 21,269 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies and Significant Judgments and Estimates - Stock Option Activity (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | Oct. 03, 2015 | |
Accounting Policies [Abstract] | |||
Beginning balance, Outstanding, Unvested | 18,060 | ||
Grants, Unvested | 0 | ||
Vested, Unvested | (740) | ||
Cancellations/forfeitures, Unvested | (600) | ||
Ending balance, Outstanding, Unvested | 16,720 | 18,060 | |
Beginning balance, Outstanding, Vested | 236,921 | ||
Grants, Vested | 0 | ||
Vested, Vested | 740 | ||
Exercises, Vested | 0 | ||
Cancellations/forfeitures, Vested | (10,400) | ||
Ending balance, Outstanding, Vested | 227,261 | 236,921 | |
Number of Shares, Outstanding, Beginning balance | 254,981 | ||
Number of Shares, Grants | 0 | 0 | |
Number of Shares, Vested | 0 | ||
Number of Shares, Exercises | 0 | ||
Number of Shares, Cancellations/forfeitures | (11,000) | ||
Number of Shares, Outstanding, Ending balance | 243,981 | 254,981 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 8.49 | ||
Weighted Average Exercise Price, Vested | 11.61 | ||
Weighted Average Exercise Price, Cancellations/ forfeitures | 3.22 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | $ 8.73 | $ 8.49 | |
Weighted Average Contractual Life, Outstanding | 4 years 9 months 4 days | 4 years 9 months 29 days |
Summary of Significant Accoun22
Summary of Significant Accounting Policies and Significant Judgments and Estimates - Stock Options Vested or Expected to Vest (Detail) - $ / shares | 3 Months Ended | |
Jan. 02, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares | 243,981 | |
Weighted-Average Remaining Contractual Life (years) | 4 years 9 months 4 days | |
Weighted Average Exercise Price | $ 8.73 | |
Exercisable Number of Shares | 227,261 | 236,921 |
Exercisable Weighted-Average Exercise Price | $ 9.05 | |
$2.01 - $3.00 [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 | $ 4 | |
Number of Shares | 16,600 | |
Weighted-Average Remaining Contractual Life (years) | 6 months 22 days | |
Weighted Average Exercise Price | $ 3.66 | |
Exercisable Number of Shares | 16,600 | |
Exercisable Weighted-Average Exercise Price | $ 3.66 | |
$3.01 - $4.00 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower limit | 4.01 | |
Range of Exercise Prices, Upper limit | $ 5 | |
Number of Shares | 42,000 | |
Weighted-Average Remaining Contractual Life (years) | 6 years 7 months 21 days | |
Weighted Average Exercise Price | $ 4.54 | |
Exercisable Number of Shares | 27,100 | |
Exercisable Weighted-Average Exercise Price | $ 4.78 | |
$4.01 - $5.00 [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 | 61,600 | |
Weighted-Average Remaining Contractual Life (years) | 4 years 7 months 28 days | |
Weighted Average Exercise Price | $ 7.57 | |
Exercisable Number of Shares | 59,780 | |
Exercisable Weighted-Average Exercise Price | $ 7.59 | |
$5.01 - $10.00 [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 | 123,781 | |
Weighted-Average Remaining Contractual Life (years) | 4 years 8 months 23 days | |
Weighted Average Exercise Price | $ 11.41 | |
Exercisable Number of Shares | 123,781 | |
Exercisable Weighted-Average Exercise Price | $ 11.41 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) | Jan. 02, 2016 | Oct. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 8,015 | $ 8,015 |
Work in process | 419,459 | 662,575 |
Raw materials | 1,469,288 | 1,180,295 |
Total inventories | $ 1,896,762 | $ 1,850,885 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 02, 2016 | Oct. 03, 2015 |
Income Tax Disclosure [Abstract] | ||
Uncertain tax positions | $ 45,631 | $ 45,631 |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Earnings Per Share [Abstract] | ||
Outstanding potentially anti-dilutive stock options | 243,981 | 269,485 |
Major Customers and Export Sa26
Major Customers and Export Sales - Additional Information (Detail) | 3 Months Ended | |
Jan. 02, 2016CountryCustomer | Dec. 27, 2014CountryCustomer | |
Segment Reporting Information [Line Items] | ||
Number of major customers | Customer | 2 | 2 |
Number of countries in which products are sold | Country | 2 | 4 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | First Customer [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 87.00% | 72.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Second Customer [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 47.00% | 60.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Third Customer [Member] | ||
Segment Reporting Information [Line Items] | ||
Major customers percentage | 40.00% | 12.00% |
Major Customers and Export Sa27
Major Customers and Export Sales - Breakdown of Foreign and Domestic Net Sales (Detail) - USD ($) | 3 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Schedule Of Net Sales By Geographical Segment [Line Items] | ||
Total Sales | $ 979,402 | $ 883,146 |
Domestic [Member] | ||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||
Total Sales | 896,865 | 764,746 |
Foreign [Member] | ||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||
Total Sales | $ 82,537 | $ 118,400 |
Major Customers and Export Sa28
Major Customers and Export Sales - Foreign Revenues by Country as Percentage of Total Foreign Revenue (Detail) | 3 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Saudi Arabia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from foreign countries as a percentage of foreign revenue | 54.00% | |
Egypt [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from foreign countries as a percentage of foreign revenue | 46.00% | 30.00% |
Taiwan [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from foreign countries as a percentage of foreign revenue | 64.00% | |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from foreign countries as a percentage of foreign revenue | 6.00% |
Major Customers and Export Sa29
Major Customers and Export Sales - Foreign Revenue, as Percentage of Total Foreign Revenue by Geographic Area (Detail) | 3 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Mid-East and Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from geographical area as a percentage of foreign revenue | 100.00% | 36.00% |
Far East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from geographical area as a percentage of foreign revenue | 64.00% |
Cash Equivalents and Marketab30
Cash Equivalents and Marketable Securities - Available-for-Sale Securities (Detail) - Money Market Mutual Funds [Member] - USD ($) | Jan. 02, 2016 | Oct. 03, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Available-for-sale securities, Cost | $ 745,985 | $ 1,385,201 |
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 | $ 745,985 | $ 1,385,201 |
Cash Equivalents and Marketab31
Cash Equivalents and Marketable Securities - Held to Maturity Securities (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Jan. 02, 2016 | Oct. 03, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity Securities, Cost | $ 1,052,480 | |
Held to Maturity Securities, Amortized Cost | 961,845 | |
Municipal Bonds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity Securities, Cost | 1,052,480 | $ 1,166,857 |
Held to Maturity Securities, Accrued Interest | 15,417 | 14,367 |
Held to Maturity Securities, Amortization Bond Premium | 106,052 | 111,709 |
Held to Maturity Securities, Amortized Cost | 961,845 | 1,069,515 |
Held to Maturity Securities, Unrealized Gains | 5,170 | 9,210 |
Held to Maturity Securities, Estimated Fair Value | $ 967,015 | $ 1,078,725 |
Cash Equivalents and Marketab32
Cash Equivalents and Marketable Securities - Contractual Maturities of Held to Maturity Investments (Detail) | Jan. 02, 2016USD ($) |
Cash and Cash Equivalents [Abstract] | |
Contractual maturities, Within 1 year, Cost | $ 228,750 |
Contractual maturities, After 1 year through 5 years, Cost | 823,730 |
Total, Cost | 1,052,480 |
Contractual maturities, Within 1 year, Amortized Cost | 206,376 |
Contractual maturities, After 1 year through 5 years, Amortized Cost | 755,469 |
Total, Amortized Cost | $ 961,845 |
Cost Method Investment - Additi
Cost Method Investment - Additional Information (Detail) - USD ($) | Jan. 12, 2016 | Oct. 03, 2015 | Oct. 30, 2014 |
Investments [Line Items] | |||
Equity investment made by the company | $ 275,000 | ||
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 | ||
PulsedLight [Member] | Subsequent Event [Member] | |||
Investments [Line Items] | |||
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% | ||
Escrow deposit period | 1 year |