Torotel (TTLO) 10-Q 14 Dec 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Oct. 31, 2015	Dec. 14, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	TOROTEL INC
Entity Central Index Key	98,752
Current Fiscal Year End Date	--04-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Oct. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		5,615,750
Entity Current Reporting Status	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2015	Apr. 30, 2015
Current assets:
Cash	$ 1,353,000	$ 1,892,000
Trade receivables, net	1,805,000	1,585,000
Inventories	1,929,000	1,676,000
Prepaid expenses and other current assets	145,000	114,000
Deferred income taxes	134,000	171,000
Assets, Current	5,366,000	5,438,000
Property, plant and equipment, net	1,377,000	1,287,000
Deferred income taxes	537,000	665,000
Other assets	86,000	85,000
Total Assets	7,366,000	7,475,000
Current liabilities:
Current maturities of long-term debt	88,000	122,000
Trade accounts payable	652,000	726,000
Accrued liabilities	324,000	579,000
Customer deposits	54,000	67,000
Liabilities, Current	1,118,000	1,494,000
Long-term debt, less current maturities	$ 514,000	$ 559,000
Commitments and contingencies
Stockholders' equity:
Common stock; par value $0.01; 6,000,000 shares authorized; 5,615,750 shares issued and outstanding	$ 60,000	$ 60,000
Capital in excess of par value	12,359,000	12,342,000
Accumulated deficit	(6,676,000)	(6,971,000)
Treasury stock, at cost	(9,000)	(9,000)
Stockholders' Equity	5,734,000	5,422,000
Total Liabilities and Stockholders' Equity	$ 7,366,000	$ 7,475,000

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares	Oct. 31, 2015	Apr. 30, 2015
Stockholders' equity:
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	6,000,000	6,000,000
Common stock, shares issued	5,615,750	5,615,750
Common stock, shares outstanding	5,615,750	5,615,750

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 4,155,000	$ 3,101,000	$ 8,209,000	$ 5,796,000
Cost of goods sold	2,672,000	2,009,000	5,436,000	3,866,000
Gross profit	1,483,000	1,092,000	2,773,000	1,930,000
Operating expenses:
Engineering	188,000	177,000	377,000	354,000
Selling, general and administrative	908,000	780,000	1,903,000	1,621,000
Operating Expenses	1,096,000	957,000	2,280,000	1,975,000
Earnings from operations	387,000	135,000	493,000	(45,000)
Other expense (income):
Interest expense, net	7,000	7,000	13,000	14,000
Earnings (loss) before provision for income taxes	380,000	128,000	480,000	(59,000)
Provision (benefit) for income taxes	146,000	49,000	185,000	(23,000)
Net earnings (loss)	$ 234,000	$ 79,000	$ 295,000	$ (36,000)
Basic earnings per share	$ 0.04	$ 0.01	$ 0.05	$ (0.01)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASHFLOWS - USD ($)	6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Cash flows from operating activities:
Net earnings	$ 295,000	$ (36,000)
Adjustments to reconcile net earnings to net cash used in operating activities:
Stock compensation cost amortized	17,000	12,000
Depreciation	189,000	165,000
Deferred income taxes	165,000	(23,000)
Termination and payout of stock appreciation rights		(250,000)
Increase (decrease) in cash flows from operations resulting from changes in:
Trade receivables	(220,000)	333,000
Inventories	(253,000)	(570,000)
Prepaid expenses and other assets	(32,000)	(87,000)
Trade accounts payable	(74,000)	195,000
Accrued liabilities	(255,000)	(279,000)
Customer deposits	(13,000)	(41,000)
Net cash used in operating activities	(181,000)	(581,000)
Cash flows from investing activities:
Capital expenditures	(279,000)	(288,000)
Net cash used in investing activities	(279,000)	(288,000)
Cash flows from financing activities:
Principal payments on long-term debt	(79,000)	(68,000)
Proceeds from long-term debt		100,000
Payments on capital lease obligations		(2,000)
Net cash provided by (used in) financing activities	(79,000)	30,000
Net decrease in cash	(539,000)	(839,000)
Cash, beginning of period	1,892,000	2,038,000
Cash, end of period	1,353,000	1,199,000
Cash paid during the year for:
Interest	13,000	14,000
Income taxes	$ 39,000	$ 19,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Oct. 31, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1 — BASIS OF PRESENTATION The consolidated condensed balance sheet as of April 30, 2015 , which has been derived from the audited financial statements of Torotel, Inc. ("Torotel"), is accompanied by the unaudited interim consolidated condensed financial statements, which reflect the normal recurring adjustments that in the opinion of management are necessary to present fairly Torotel’s consolidated financial position at October 31 , 2015 , and the consolidated results of operations for the three and six months ended October 31 , 2015 , and 2014 , respectively. The unaudited interim consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although management believes the disclosures made are adequate to make the information not misleading. The financial statements contained herein should be read in conjunction with Torotel’s consolidated financial statements and related notes filed on Torotel's Form 10-K for the year ended April 30, 2015 as filed with the SEC on July 2, 2015. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The standard is effective for reporting periods beginning after December 15, 2017 and early adoption permitted for reporting periods beginning after December 15, 2016. The standard will supersede existing revenue recognition guidance, including industry-specific guidance, and will provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The standard requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The provisions of this new guidance are effective as of the beginning of Torotel’s first fiscal quarter of 2018. Torotel is currently evaluating the transition method to be used and the impact of adoption of this standard on its consolidated financial statements.

NATURE OF OPERATIONS

NATURE OF OPERATIONS	6 Months Ended
	Oct. 31, 2015
NATURE OF OPERATIONS
NATURE OF OPERATIONS	NOTE 2 — NATURE OF OPERATIONS Torotel conducts business primarily through its wholly owned subsidiary, Torotel Products, Inc. (“Torotel Products”), but also operates another wholly owned subsidiary, Electronika, Inc. (“Electronika”). Torotel specializes in the custom design and manufacture of a wide variety of precision magnetic components, consisting of transformers, inductors, reactors, chokes, toroidal coils, high voltage transformers, dry-type transformers and electro-mechanical assemblies, for use in commercial, industrial and military electronics. Torotel also distributes ballast transformers for the airline industry .

INVENTORIES

INVENTORIES	6 Months Ended
	Oct. 31, 2015
INVENTORIES
INVENTORIES	NOTE 3—INVENTORIES The following table summarizes the components of inventories: October 31, 2015 April 30, 2015 Raw materials $ $ Work in process Finished goods $ $

FINANCING AGREEMENTS

FINANCING AGREEMENTS	6 Months Ended
	Oct. 31, 2015
FINANCING AGREEMENTS
FINANCING AGREEMENTS	NOTE 4—FINANCING AGREEMENTS Torotel Products has a financing agreement (the “financing agreement”) with Commerce Bank, N.A (the “Bank”). The financing agreement provides for a revolving line of credit, a guidance line of credit, and a real estate term loan. Both Torotel and Electronika serve as additional guarantors to all notes described below. A summary of the notes outstanding under the financing agreement is provided below: October 31, 2015 April 30, 2015 4.05% mortgage note payable in monthly installments of $4,873 , including interest, with final payment of $349,000 due January 27, 2019 $ $ 4.00% line of credit with a maturity date of September 27, 2016 - - Borrowings under an equipment financing line of credit: 4.63% note payable in monthly installments of $7,123 , including interest, with final payment due September 26, 2015 - 4.75% note payable in monthly installments of $2,269 , including interest, with final payment due May 27, 2018 3.75% note payable in monthly installments of $2,112 , including interest, with final payment due April 10, 2018 Total long-term debt Less current installments Long-term debt, excluding current installments $ $ The revolving line of credit, to be used for working capital purposes, is renewable annually. The associated interest rate is equal to the greater of the floating Commerce Bank Prime Rate (currently 3.25%) or a floor of 4% (as listed above). Monthly repayments of interest only are required with the principal due at maturity. The maximum borrowing of this line of credit is $500,000 . This revolving line of credit is cross collateralized and cross defaulted with all other facilities of Torotel Products with the Bank and is secured by a first lien on all business assets of Torotel Products. The mortgage note requires monthly payments consisting of both interest and principal. This obligation is cross collateralized and cross defaulted with all other credit facilities and arrangements of Torotel Products with the Bank and is secured by a first real estate mortgage on the property located at 620 North Lindenwood Drive in Olathe, Kansas. This loan was refinanced on February 21, 2014 with a principal amount of $542,000 at the time of difference . The equipment note is a guidance line of credit to be used for equipment purchases. Monthly repayments consisting of both interest an d principal are required. This note is cross collateralized and cross defaulted with all other credit facilities and arrangements of Torotel Products with the Bank and is secured by a purchase money security interest in the assets purchased as well as a first lien on all business assets of Torotel Products. The maximum borrowing of this line of credit is $500,000 . Torotel is also required to comply with specified financial covenants in its guaranty of the financing agreement. As of October 31 , 2015 , Torotel was in compliance with these covenants.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Oct. 31, 2015
INCOME TAXES
INCOME TAXES	NOTE 5—INCOME TAXES As of October 31 , 2015 , the federal tax returns for the fiscal years ended 2011 through 2015 are open to audit until the statute of limitations closes for the years in which our net operating losses are utilized. We would recognize interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense. As of October 31 , 2015 , we recorded no accrued interest or penalties related to uncertain tax positions. We expect no significant change in the amount of unrecognized tax benefit, accrued interest or penalties within the next twelve months.

RESTRICTED STOCK AGREEMENTS

RESTRICTED STOCK AGREEMENTS	6 Months Ended
	Oct. 31, 2015
RESTRICTED STOCK AGREEMENTS
RESTRICTED STOCK AGREEMENTS	NOTE 6—RESTRICTED STOCK AGREEMENTS Restricted Stock Agreements , and stock awards thereunder, are authorized by the Compensation and Nominating Committee (the "Committee") and the Board of Directors of Torotel (the "Board"). The Committee and the Board have determined that the interests of Torotel and its stockholders is promoted by hiring talented individuals and, to induce such individuals to accept employment with Torotel, the Committee and the Board believe a key component of such individuals' compensation should be the receipt of equity ownership opportunities based upon the acceptance of employment and the continuing employment of such individuals, subject to certain conditions and restrictions. The terms of the Restricted Stock Agreements afford the grantees all of the rights of a stockholder with respect to the award shares, including the right to vote such shares and to receive dividends and other distributions payable with respect to such shares since the date of award. Under the terms of each agreement, the non-vested shares are restricted as to disposition and subject to forfeiture under certain circumstances. The Restricted Stock Agreements further provide, subject to certain conditions, that if prior to all of the restricted shares having vested, we undergo a change in control, then all of the restricted shares shall be vested and no longer subject to restrictions under the Restricted Stock Agreements. The restricted shares are treated as non-vested stock; accordingly, the fair value of the restricted stock at the date of award is offset against capital in excess of par value in the accompanying consolidated balance sheets under stockholders' equity. On June 17, 2013, we entered into Restricted Stock Agreements with three key employees pursuant to the “ Stock A ward Plan ” . The aggregate amount of the restricted stock awards was 400,000 shares of common stock . These shares were transferred from treasury shares. Based on the market price of $0.50 for our common stock as of June 17, 2013, the fair value of the restricted stock at the date of award was $200,000 . The shares issued pursuant to the Restricted Stock Agreements on June 17, 2013 are restricted and may not be sold, assigned, pledged or otherwise disposed of until the restrictions lapse. The restrictions will lapse on the fifth anniversary of the date of grant if during the five year restriction period, (1) Torotel's cumulative annual growth in earnings before interest and taxes ("EBIT") is at least 10% and (2) Torotel's average return on capital employed ("ROCE") is at least 25% . The restrictions will also lapse, if prior to the fifth anniversary of the date of grant, (1) the grantee's employment with Torotel is terminated by reason of disability, (2) the grantee dies, or (3) the Committee, in its sole discretion, terminates the restrictions. If the restrictions on such shares have not lapsed by the fifth anniversary of the date of grant, such shares will be forfeited to Torotel. Stock compensation cost net of an appropriate pre-vesting forfeiture rate is recorded per quarter for the remainder of the vesting period provided the financial performance metrics as outlined in the SAP are likely to be attained. Total stock compensation cost for the six months ended October 31 , 2015 and 2014 was $17,000 and $12,000 , respectively. Restricted stock activity for each six month period through October 31 is summarized as follows: 2015 2014 Restricted Weighted Restricted Weighted Shares Average Shares Average Under Grant Under Grant Option Price Option Price Outstanding at May 1 $ $ Granted — — — — Vested — — — — Forfeited — — — — Outstanding at October 31 $ $

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Oct. 31, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 7—STOCKHOLDERS' EQUITY The changes in shares of common stock outstanding as of October 31 of each year are summarized as follows: 2015 2014 Balance, May 1 Restricted stock activity — — Treasury stock activity — — Balance, October 31

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Oct. 31, 2015
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 8—EARNINGS PER SHARE Basic and diluted earnings per share are computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each period. The basic earnings per common share were computed as follows: Three Months Ended Six Months Ended October 31, 2015 October 31, 2014 October 31, 2015 October 31, 2014 Net earnings $ $ $ $ Amounts allocated to participating securities (nonvested restricted shares) — Net income attributable to common shareholders $ $ $ $ Basic weighted average common shares Earnings per share attributable to common shareholders: Basic earnings per share $ $ $ $ ASC 260, Earnings per Share, provides that unvested share-based payment awards that contain non-forfeitable rights to dividends are considered to be participating securities and must be included in the computation of earnings per share pursuant to the two-class method. Diluted earnings per share is not presented as we do not have any shares considered incremental and dilutive.

CUSTOMER DEPOSITS

CUSTOMER DEPOSITS	6 Months Ended
	Oct. 31, 2015
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS	NOTE 9—CUSTOMER DEPOSITS For certain customers, we collect payment at the time the order is placed. These deposits are classified as a liability and will be recognized as revenue at the time of shipment in accordance with our revenue recognition policy. As of October 31 , 2015 we had approximately $54,000 in customer deposits related to these arrangements.

CONCENTRATIONS OF CREDIT RISK

CONCENTRATIONS OF CREDIT RISK	6 Months Ended
	Oct. 31, 2015
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK	NOTE 10 — CONCENTRATIONS OF CREDIT RISK Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. We grant unsecured credit to most of our customers. We do not believe that we are exposed to any extraordinary credit risk as a result of this policy. At various times, and at October 31 , 2015 , cash balances exceeded federally insured limits. However, we have incurred no losses in the cash accounts and we do not believe we are exposed to any significant credit risk with respect to our cash.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Oct. 31, 2015
INVENTORIES
Table summarizing the components of inventories	October 31, 2015 April 30, 2015 Raw materials $ $ Work in process Finished goods $ $

FINANCING AGREEMENTS (Tables)

FINANCING AGREEMENTS (Tables)	6 Months Ended
	Oct. 31, 2015
FINANCING AGREEMENTS
Summary of the notes within the financing agreement	October 31, 2015 April 30, 2015 4.05% mortgage note payable in monthly installments of $4,873 , including interest, with final payment of $349,000 due January 27, 2019 $ $ 4.00% line of credit with a maturity date of September 27, 2016 - - Borrowings under an equipment financing line of credit: 4.63% note payable in monthly installments of $7,123 , including interest, with final payment due September 26, 2015 - 4.75% note payable in monthly installments of $2,269 , including interest, with final payment due May 27, 2018 3.75% note payable in monthly installments of $2,112 , including interest, with final payment due April 10, 2018 Total long-term debt Less current installments Long-term debt, excluding current installments $ $

RESTRICTED STOCK AGREEMENTS (Ta

RESTRICTED STOCK AGREEMENTS (Tables)	6 Months Ended
	Oct. 31, 2015
RESTRICTED STOCK AGREEMENTS
Summary of restricted stock activity	2015 2014 Restricted Weighted Restricted Weighted Shares Average Shares Average Under Grant Under Grant Option Price Option Price Outstanding at May 1 $ $ Granted — — — — Vested — — — — Forfeited — — — — Outstanding at October 31 $ $

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Oct. 31, 2015
STOCKHOLDERS' EQUITY
Summary of changes in shares of common stock outstanding	2015 2014 Balance, May 1 Restricted stock activity — — Treasury stock activity — — Balance, October 31

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Oct. 31, 2015
EARNINGS PER SHARE
Computation of earnings per common share	Three Months Ended Six Months Ended October 31, 2015 October 31, 2014 October 31, 2015 October 31, 2014 Net earnings $ $ $ $ Amounts allocated to participating securities (nonvested restricted shares) — Net income attributable to common shareholders $ $ $ $ Basic weighted average common shares Earnings per share attributable to common shareholders: Basic earnings per share $ $ $ $

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Oct. 31, 2015	Apr. 30, 2015
INVENTORIES
Raw materials	$ 1,032,000	$ 1,029,000
Work in process	616,000	445,000
Finished goods	281,000	202,000
Inventories	$ 1,929,000	$ 1,676,000

FINANCING AGREEMENTS (SCHEDULE

FINANCING AGREEMENTS (SCHEDULE OF DEBT) (Details) - USD ($)	6 Months Ended
	Oct. 31, 2015	Apr. 30, 2015	Feb. 21, 2014
Long-term indebtedness
Total long-term debt	$ 602,000	$ 681,000
Current maturities	88,000	122,000
Long-term Debt, Excluding Current Maturities, Total	514,000	559,000
Mortgage note payable
Long-term indebtedness
Total debt outstanding	$ 475,000	495,000
Principal amount			$ 542,000
Rate	4.05%
Final Payment	$ 349,000
Monthly installments	$ 4,873
Line of Credit
Long-term indebtedness
Rate	4.00%
Interest rate floor	4.00%
Line of Credit | Prime Rate
Long-term indebtedness
Rate	3.25%
Note Payable
Long-term indebtedness
Maximum borrowing	$ 500,000
Equipment financing maximum borrowing	$ 500,000
Note payable 4.63 percent
Long-term indebtedness
Total debt outstanding		36,000
Rate	4.63%
Monthly installments	$ 7,123
Note payable 4.75 percent
Long-term indebtedness
Total debt outstanding	$ 67,000	77,000
Rate	4.75%
Monthly installments	$ 2,269
Note payable 3.75 percent
Long-term indebtedness
Total debt outstanding	$ 60,000	$ 73,000
Rate	3.75%
Monthly installments	$ 2,112

INCOME TAXES (DEFERRED TAX ASSE

INCOME TAXES (DEFERRED TAX ASSETS BALANCE SHEET PRESENTATION) (Details) - USD ($)	Oct. 31, 2015	Apr. 30, 2015
INCOME TAXES
Current deferred income tax asset	$ 134,000	$ 171,000
Noncurrent deferred income tax asset	537,000	$ 665,000
Accrued interest or penalties related to uncertain tax positions	0
Expected change in the amount of unrecognized tax benefit, accrued interest or penalties within the next twelve months	$ 0

RESTRICTED STOCK AGREEMENTS (De

RESTRICTED STOCK AGREEMENTS (Details)	Jun. 17, 2013USD ($)employee$ / sharesshares	Oct. 31, 2015USD ($)$ / sharesshares	Oct. 31, 2014USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation cost amortized | $		$ 17,000	$ 12,000
Restricted Stock
Restricted Shares Under Option
Outstanding at May 1 | shares		350,000	350,000
Outstanding at October 31 | shares		350,000	350,000
Weighted Average Grant Price
Outstanding at May 1, Weighted Average Grant Price (in dollars per share) | $ / shares		$ 0.500	$ 0.500
Outstanding at October 31, Weighted Average Grant Price (in dollars per share) | $ / shares		$ 0.500	$ 0.500
Stock Award Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restriction period of awards	5 years
Minimum cumualtive annual growth in EBIT necessary for lapsing of	10.00%
Minimum average return on capital employed necessary for lapsing of	25.00%
Stock Award Plan | Restricted Stock | Three Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares	400,000
Share Price | $ / shares	$ 0.50
Fair Value on Grant Date | $	$ 200,000
Number of key employees receiving award under plan | employee	3

STOCKHOLDERS' EQUITY (SCHEDULE

STOCKHOLDERS' EQUITY (SCHEDULE OF STOCK BY CLASS) (Details) - shares	Oct. 31, 2015	Apr. 30, 2015	Oct. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the begining	5,615,750	5,615,750	5,615,750
Balance at the end	5,615,750	5,615,750	5,615,750

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
EARNINGS PER SHARE
Net earnings	$ 234,000	$ 79,000	$ 295,000	$ (36,000)
Amounts allocated to participating securities (nonvested restricted shares)	(14,000)	(5,000)	(18,000)
Net income (loss) attributable to common shareholders	$ 220,000	$ 74,000	$ 277,000	$ (36,000)
Basic weighted average common shares	5,265,750	5,265,750	5,265,750	5,265,750
Basic earnings per share	$ 0.04	$ 0.01	$ 0.05	$ (0.01)

CUSTOMER DEPOSITS (Details)

CUSTOMER DEPOSITS (Details) - USD ($)	Oct. 31, 2015	Apr. 30, 2015
CUSTOMER DEPOSITS
Customer Advances, Current	$ 54,000	$ 67,000

CONCENTRATIONS OF CREDIT RISK (

CONCENTRATIONS OF CREDIT RISK (Details)	6 Months Ended
	Oct. 31, 2015USD ($)
CONCENTRATIONS OF CREDIT RISK
Losses in the cash accounts	$ 0