Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Aug. 24, 2019 | Oct. 07, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | MICROPAC INDUSTRIES INC | |
Entity Central Index Key | 0000065759 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 24, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 2,578,315 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 24, 2019 | Nov. 30, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 12,457 | $ 10,483 |
Short-term investments | 2,081 | 2,058 |
Receivables, net of allowance for doubtful accounts of $0 at August 24, 2019 and November 30, 2018 | 3,392 | 3,772 |
Contract Assets | 550 | |
Inventories: | ||
Raw materials and supplies | 4,166 | 4,593 |
Work-in process | 2,310 | 1,985 |
Total inventories | 6,476 | 6,578 |
Prepaid income tax | 79 | 407 |
Prepaid expenses and other assets | 585 | 511 |
Total current assets | 25,620 | 23,809 |
PROPERTY, PLANT AND EQUIPMENT, at cost: | ||
Land | 1,518 | 1,518 |
Buildings | 498 | 498 |
Facility improvements | 1,109 | 1,109 |
Furniture and fixtures | 977 | 953 |
Construction in process equipment | 644 | 607 |
Machinery and equipment | 8,991 | 8,841 |
Total property, plant, and equipment | 13,737 | 13,526 |
Less accumulated depreciation | (10,027) | (9,746) |
Net property, plant, and equipment | 3,710 | 3,780 |
Deferred income taxes, net | 42 | 57 |
Total assets | 29,372 | 27,646 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,010 | 707 |
Accrued compensation | 948 | 747 |
Deferred revenue | 531 | 1,238 |
Property taxes | 72 | 88 |
Other accrued liabilities | 26 | 123 |
Total current liabilities | 2,587 | 2,903 |
SHAREHOLDERS’ EQUITY | ||
Common stock, $.10 par value, authorized 10,000,000 shares, 3,078,315 issued and 2,578,315 outstanding at August 24, 2019 and November 30, 2018 | 308 | 308 |
Additional paid-in capital | 885 | 885 |
Treasury stock, 500,000 shares, at cost | (1,250) | (1,250) |
Retained earnings | 26,842 | 24,800 |
Total shareholders’ equity | 26,785 | 24,743 |
Total liabilities and shareholders’ equity | $ 29,372 | $ 27,646 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Aug. 24, 2019 | Nov. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Common Stock, par value | $ 0.1 | $ 0.1 |
Common Stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 3,078,315 | 3,078,315 |
Common Stock, shares outstanding | 2,578,315 | 2,578,315 |
Treasury stock, shares | 500,000 | 500,000 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 24, 2019 | Aug. 25, 2018 | Aug. 24, 2019 | Aug. 25, 2018 | |
Income Statement [Abstract] | ||||
NET SALES | $ 7,252 | $ 5,002 | $ 17,966 | $ 13,842 |
COST AND EXPENSES: | ||||
Cost of goods sold | (4,042) | (3,272) | (10,138) | (8,611) |
Research and development | (428) | (314) | (1,260) | (963) |
Selling, general & administrative expenses | (1,440) | (1,303) | (4,045) | (3,750) |
Total cost and expenses | (5,910) | (4,899) | (15,443) | (13,324) |
OPERATING INCOME | 1,342 | 113 | 2,523 | 518 |
Other income | 21 | 25 | ||
Interest income, net | 39 | 17 | 87 | 47 |
INCOME BEFORE TAXES | 1,381 | 151 | 2,610 | 590 |
Provision (benefit) for taxes | 193 | (113) | 365 | (163) |
NET INCOME | $ 1,188 | $ 264 | $ 2,245 | $ 753 |
NET INCOME PER SHARE, BASIC AND DILUTED | $ 0.46 | $ 0.10 | $ 0.87 | $ 0.29 |
DIVIDENDS PER SHARE | $ 0.10 | $ 0.10 | ||
WEIGHTED AVERAGE OF SHARES, basic and diluted | 2,578,315 | 2,578,315 | 2,578,315 | 2,578,315 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 24, 2019 | Aug. 25, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,245 | $ 753 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 281 | 236 |
Deferred tax | 86 | |
Changes in certain current assets and liabilities | ||
Accounts receivable | 380 | 757 |
Inventories | (24) | (699) |
Contract asset | (307) | |
Prepaid expense and other current assets | (74) | (147) |
Prepaid income taxes | 328 | (259) |
Deferred revenue | (706) | 244 |
Accounts payable | 256 | 241 |
Accrued compensation | 201 | (144) |
Other accrued liabilities | (114) | (89) |
Net cash provided by operating activities | 2,466 | 979 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sale of short term investments | 4,138 | 4,082 |
Purchase of short term investments | (4,161) | (4,104) |
Additions to property, plant and equipment | (211) | (248) |
Net cash used in investing activities | (234) | (270) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash dividend | (258) | (258) |
Net cash used in financing activities | (258) | (258) |
Net change in cash and cash equivalents | 1,974 | 451 |
Cash and cash equivalents at beginning of period | 10,483 | 9,388 |
Cash and cash equivalents at end of period | 12,457 | 9,839 |
Supplemental Cash Flow Disclosure: | ||
Cash paid for income taxes | $ 36 | $ 16 |
Shareholders Equity (Unaudited)
Shareholders Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings / Accumulated Deficit | Total |
Beginning Balance at Nov. 30, 2017 | $ 308 | $ 885 | $ (1,250) | $ 23,617 | $ 23,560 |
Dividend | (258) | (258) | |||
Net Income | 753 | 753 | |||
Ending Balance at Aug. 25, 2018 | 308 | 885 | (1,250) | 24,112 | 24,055 |
Beginning Balance at Nov. 30, 2018 | 308 | 885 | (1,250) | 24,800 | 24,743 |
Impact of Change in Accounting Policy | 55 | 55 | |||
Dividend | (258) | (258) | |||
Net Income | 2,245 | 2,245 | |||
Ending Balance at Aug. 24, 2019 | $ 308 | $ 885 | $ (1,250) | $ 26,842 | $ 26,785 |
1. BASIS OF PRESENTATION
1. BASIS OF PRESENTATION | 9 Months Ended |
Aug. 24, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | Note 1 BASIS OF PRESENTATION Business Description Micropac Industries, Inc. (the “Company”), a Delaware corporation, designs, manufactures and distributes various types of microelectronic circuits, solid state relays, power controllers, and optoelectronic components and assemblies. The Company’s products are used as components and assemblies in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200 o The Company’s facilities are certified and qualified by the Defense Logistics Agency (DLA) to MIL-PRF-38534 (class K-space level) and MIL-PRF-19500 JANS (space level) and are certified to ISO 9001:2015 and AS 9100D. Micropac is a National Aeronautics and Space Administration (NASA) core supplier, and is registered to AS9100-Aerospace Industry standard for supplier certification. The Company has Underwriters Laboratories (UL) approval on our industrial power controllers. The Company’s core technology is microelectronic and optoelectronic designs to include the packaging and interconnecting of multi-chip microelectronics modules. Other technologies include light emitting and light sensitive materials and products, including light emitting diodes and silicon phototransistors, and electronic integration used in the Company’s optoelectronic components and assemblies. The business of the Company was started in 1963 as a sole proprietorship. On March 3, 1969, the Company was incorporated under the name of “Micropac Industries, Inc.” in the state of Delaware. The stock was publicly held by 442 shareholders on August 24, 2019. In the opinion of management, the unaudited financial statements include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the financial position as of August 24, 2019, the results of operations for the three and nine months ended August 24, 2019 and August 25, 2018, and the cash flows for the nine months ended August 24, 2019 and August 25, 2018 including the statement of shareholders equity. Unaudited financial statements are prepared on a basis substantially consistent with those audited for the year ended November 30, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to the rules and regulations promulgated by the Securities and Exchange Commission. The Company’s fiscal year ends on the last day of November. The quarterly results end on the last Saturday of the quarter. It is suggested that these financial statements be read in conjunction with the November 30, 2018 Form 10-K filed with the SEC, including the audited financial statements and the accompanying notes thereto. |
2. SIGNIFICANT ACCOUNTING POLIC
2. SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Aug. 24, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Note 2 SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Based on a review of its customer contracts, the Company has determined that revenue on the majority of its customer contracts will continue to be recognized at a point in time, generally upon shipment of products, consistent with the Company’s historical revenue recognition model. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applied the following steps: 1. Identify the contract(s) with a customer. The Company designs, manufactures and distributes various types of microelectronic circuits, optoelectronics, and sensors and displays. The Company’s products are used as components and assemblies in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200 o The Company’s revenues are from purchase orders associated with manufacture of products and/or contracts with customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. 2. Identify the performance obligations in the contract. The majority of the Company’s purchase orders or contracts with customers contain a single performance obligation, the sale of products. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company receives purchase orders for products to be delivered over multiple dates that may extend across reporting periods. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 3. Determine the transaction price. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer at a fixed price per unit shipped based on the terms of the contract or purchase order with the customer. 4. Allocate the transaction price to the performance obligations in the contract. The Company transaction price is the fixed price per unit per each delivery upon shipment. 5. Recognize revenue when (or as) the Company satisfies a performance obligation. The Company invoices for each delivery upon shipment and recognizes revenues at the fixed price for each distinct product delivered when transfer of control has occurred, which is generally upon shipment. For certain contracts under which the Company produces products with no alternative use and for which the Company has an enforceable right to payment during the production cycle, Topic 606 requires the Company to recognize revenue using an over-time recognition model as opposed to recognizing revenue at the time of shipment. The Company recognizes this revenue at work in process cost plus a margin at the end of each period and records a contract asset (unbilled receivable). The majority of these products are shipped weekly and monthly to the customer. In addition, the Company may have a contract or purchase order to provide a non-recurring engineering service to a customer. These contracts are reviewed and performance obligations are determined and revenue recognized upon terms and conditions of the contract from the customer. Effective as of the beginning of the first quarter of fiscal 2019, we adopted Topic 606 using the modified retrospective method and recognized a cumulative effect adjustment to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition model to an over-time recognition model. While the impact to net sales and net income was not material to our results of operations, the future impact of Topic 606 is dependent on the mix and nature of specific customer contracts. Upon adoption, we recognized an increase in retained earnings of $55,000. The details of the adjustment to retained earnings upon adoption as well as the effects of the balance sheet are as follows: Balance at Balance at Assets November 30, 2018 Adjustment due to Topic 606 December 1, 2018 Contract assets $ 0 $ 242 $ 242 Work in process $ 1,985 $ (173 ) $ 1,812 Deferred income tax net $ 57 $ (15 ) $ 42 Shareholder equity Retained Earnings $ 24,800 $ 55 $ 24,855 The following table summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Statement of Operations for three and nine months ended August 24, 2019. Three months ended August 24, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 7,252 $ 7,116 $ (136 ) Cost of goods sold $ (4,042 ) $ (3,970 ) $ 72 Income before taxes $ 1,381 $ 1,317 $ (64 ) Income tax $ (193 ) $ (180 ) $ 13 Net Income $ 1,188 $ 1,137 $ (51 ) Nine months ended August 24, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 17,966 $ 17,414 $ (552 ) Cost of goods sold $ (10,138 ) $ (9,769 ) $ 369 Income before taxes $ 2,610 $ 2,427 $ (183 ) Income tax $ 365 $ 327 $ (38 ) Net Income $ 2,245 $ 2,100 $ (145 ) Disaggregation of Revenue The following table summarizes the Company’s net sales by product line. 8/24/2019 8/25/2018 Microcircuits $ 5,660 $ 3,121 Optoeletronics 4,730 6,559 Sensors and Displays 7,576 4,162 $ 17,966 $ 13,842 Timing of revenue recognition Recognized at a point in time $ 17,414 $ 13,842 Recognized over time 552 — Total Revenue $ 17,966 $ 13,842 Deferred Revenue represents advance payments from customers and will be recognized as revenue when the performance obligations are met based on the terms of the contract. Contract costs The Company does not have material incremental costs to obtain a contract in the form of sales commissions or bonuses. The Company incurs other immaterial costs to obtain and fulfill a contract; however, the Company has elected the practical expedient under ASC 340-40-24-4 to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less Short-Term Investments The Company has $2,081,000 in short-term investments at August 24, 2019. Short-term investments consist of certificates of deposits with maturities greater than 90 days. These investments are reported at historical cost, which approximates fair value. All highly liquid investments with maturities of 90 days or less are classified as cash equivalents. All short-term investments are securities which the Company has the ability and intent to hold to maturity and mature within one year. Inventories Inventories are stated at lower of cost or net realizable value and include material, labor and manufacturing overhead. All inventories are valued using the FIFO (first-in, first-out) method of inventory valuation. The Company determines the need to write inventory down to the lower of cost or net realizable value via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method the Company records deferred income taxes for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The resulting deferred tax liabilities and assets are adjusted to reflect changes in tax law or rates in the period that includes the enactment date. The Company records a liability for an unrecognized tax benefit for a tax position that is not “more-likely-than-not” to be sustained. The Company did not record any liability for uncertain tax positions as of August 24, 2019. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into United States tax law, which among other provisions lowered the corporate tax rate to 21%. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to provide guidance for companies that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance with SAB 118, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, as of the date of enactment, and during the twelve months ended November 30, 2018, we revalued all deferred tax assets and liabilities at the newly enacted Federal corporate US income tax rate. This revaluation as of enactment resulted in a non-cash provisional estimate of $77,000 to income tax expense and a corresponding reduction in the net deferred tax asset. Property, Plant, and Equipment Property, plant, and equipment are carried at cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in years) of the assets: Buildings....................................................................................................................................................15 Facility improvements......................................................................................................................... 8-15 Machinery and equipment................................................................................................................. 5-10 Furniture and fixtures ...........................................................................................................................5-8 The Company assesses long-lived assets for impairment in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ASC 360-10-35, Property, Plant and Equipment – Subsequent Measurement Repairs and maintenance are expensed as incurred. Improvements which extend the useful lives of property, plant, and equipment are capitalized. Research and Development Costs Costs for the design and development of new products are expensed as incurred. |
3. NEW ACCOUNTING PRONOUNCEMENT
3. NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Aug. 24, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | Note 3 NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) |
4. FAIR VALUE MEASUREMENT
4. FAIR VALUE MEASUREMENT | 9 Months Ended |
Aug. 24, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Note 4 FAIR VALUE MEASUREMENT The Company had no financial assets or liabilities measured at fair value on a recurring basis as of August 24, 2019 and November 30, 2018. The fair value of financial instruments such as cash and cash equivalents, short term investments, accounts receivable, and accounts payable approximate their carrying amount based on the short maturity of these instruments. There were no nonfinancial assets measured at fair value on a nonrecurring basis at August 24, 2019 and November 30, 2018. |
5. COMMITMENTS
5. COMMITMENTS | 9 Months Ended |
Aug. 24, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | Note 5 COMMITMENTS On May 30, 2019, the Company renewed the Loan Agreement with a Texas banking institution. The Loan Agreement provides for revolving credit loans, in amounts not to exceed a total principal balance of $6,000,000. The Loan Agreement also contains financial covenants to maintain at all times including (i) minimum working capital of not less than $4,000,000, (ii) a ratio of senior funded debt, minus the Company’s balance sheet cash on hand to the extent in excess of $2,000,000 to EBITDA of not more than 3.0 to 1.0, and (iii) a ratio of free cash flow to debt service of not less than 1.2 to 1.0. The Company has not, to date, drawn any amounts under the revolving line of credit and is currently in compliance with the financial covenants. |
6. EARNINGS PER COMMON SHARE
6. EARNINGS PER COMMON SHARE | 9 Months Ended |
Aug. 24, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | Note 6 EARNINGS PER COMMON SHARE Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the respective periods. Diluted earnings per share gives effect to all dilutive potential common shares. For the three and nine months ended August 24, 2019 and February 24, 2018, the Company had no dilutive potential common stock instruments. |
7. SHAREHOLDERS' EQUITY
7. SHAREHOLDERS' EQUITY | 9 Months Ended |
Aug. 24, 2019 | |
Dividends, Common Stock [Abstract] | |
SHAREHOLDERS' EQUITY | Note 7 SHAREHOLDERS’ EQUITY On December 12, 2017, the Board of Directors of Micropac Industries, Inc. approved the payment of a $0.10 per share special dividend to all shareholders of record as of January 10, 2018. The dividend was paid to shareholders on February 8, 2018. On December 11, 2018, the Board of Directors of Micropac Industries, Inc. approved the payment of a $0.10 per share special dividend to all shareholders of record as of January 9, 2019. The dividend was paid to shareholders on February 8, 2019. |
2. SIGNIFICANT ACCOUNTING POL_2
2. SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Aug. 24, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Based on a review of its customer contracts, the Company has determined that revenue on the majority of its customer contracts will continue to be recognized at a point in time, generally upon shipment of products, consistent with the Company’s historical revenue recognition model. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applied the following steps: 1. Identify the contract(s) with a customer. The Company designs, manufactures and distributes various types of microelectronic circuits, optoelectronics, and sensors and displays. The Company’s products are used as components and assemblies in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200 o The Company’s revenues are from purchase orders associated with manufacture of products and/or contracts with customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. 2. Identify the performance obligations in the contract. The majority of the Company’s purchase orders or contracts with customers contain a single performance obligation, the sale of products. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company receives purchase orders for products to be delivered over multiple dates that may extend across reporting periods. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 3. Determine the transaction price. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer at a fixed price per unit shipped based on the terms of the contract or purchase order with the customer. 4. Allocate the transaction price to the performance obligations in the contract. The Company transaction price is the fixed price per unit per each delivery upon shipment. 5. Recognize revenue when (or as) the Company satisfies a performance obligation. The Company invoices for each delivery upon shipment and recognizes revenues at the fixed price for each distinct product delivered when transfer of control has occurred, which is generally upon shipment. For certain contracts under which the Company produces products with no alternative use and for which the Company has an enforceable right to payment during the production cycle, Topic 606 requires the Company to recognize revenue using an over-time recognition model as opposed to recognizing revenue at the time of shipment. The Company recognizes this revenue at work in process cost plus a margin at the end of each period and records a contract asset (unbilled receivable). The majority of these products are shipped weekly and monthly to the customer. In addition, the Company may have a contract or purchase order to provide a non-recurring engineering service to a customer. These contracts are reviewed and performance obligations are determined and revenue recognized upon terms and conditions of the contract from the customer. Effective as of the beginning of the first quarter of fiscal 2019, we adopted Topic 606 using the modified retrospective method and recognized a cumulative effect adjustment to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition model to an over-time recognition model. While the impact to net sales and net income was not material to our results of operations, the future impact of Topic 606 is dependent on the mix and nature of specific customer contracts. Upon adoption, we recognized an increase in retained earnings of $55,000. The details of the adjustment to retained earnings upon adoption as well as the effects of the balance sheet are as follows: Balance at Balance at Assets November 30, 2018 Adjustment due to Topic 606 December 1, 2018 Contract assets $ 0 $ 242 $ 242 Work in process $ 1,985 $ (173 ) $ 1,812 Deferred income tax net $ 57 $ (15 ) $ 42 Shareholder equity Retained Earnings $ 24,800 $ 55 $ 24,855 The following table summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Statement of Operations for three and nine months ended August 24, 2019. Three months ended August 24, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 7,252 $ 7,116 $ (136 ) Cost of goods sold $ (4,042 ) $ (3,970 ) $ 72 Income before taxes $ 1,381 $ 1,317 $ (64 ) Income tax $ (193 ) $ (180 ) $ 13 Net Income $ 1,188 $ 1,137 $ (51 ) Nine months ended August 24, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 17,966 $ 17,414 $ (552 ) Cost of goods sold $ (10,138 ) $ (9,769 ) $ 369 Income before taxes $ 2,610 $ 2,427 $ (183 ) Income tax $ 365 $ 327 $ (38 ) Net Income $ 2,245 $ 2,100 $ (145 ) Disaggregation of Revenue The following table summarizes the Company’s net sales by product line. 8/24/2019 8/25/2018 Microcircuits $ 5,660 $ 3,121 Optoeletronics 4,730 6,559 Sensors and Displays 7,576 4,162 $ 17,966 $ 13,842 Timing of revenue recognition Recognized at a point in time $ 17,414 $ 13,842 Recognized over time 552 — Total Revenue $ 17,966 $ 13,842 Deferred Revenue represents advance payments from customers and will be recognized as revenue when the performance obligations are met based on the terms of the contract. Contract costs The Company does not have material incremental costs to obtain a contract in the form of sales commissions or bonuses. The Company incurs other immaterial costs to obtain and fulfill a contract; however, the Company has elected the practical expedient under ASC 340-40-24-4 to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less |
Short-Term Investments | Short-Term Investments The Company has $2,081,000 in short-term investments at August 24, 2019. Short-term investments consist of certificates of deposits with maturities greater than 90 days. These investments are reported at historical cost, which approximates fair value. All highly liquid investments with maturities of 90 days or less are classified as cash equivalents. All short-term investments are securities which the Company has the ability and intent to hold to maturity and mature within one year. |
Inventories | Inventories Inventories are stated at lower of cost or net realizable value and include material, labor and manufacturing overhead. All inventories are valued using the FIFO (first-in, first-out) method of inventory valuation. The Company determines the need to write inventory down to the lower of cost or net realizable value via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method the Company records deferred income taxes for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The resulting deferred tax liabilities and assets are adjusted to reflect changes in tax law or rates in the period that includes the enactment date. The Company records a liability for an unrecognized tax benefit for a tax position that is not “more-likely-than-not” to be sustained. The Company did not record any liability for uncertain tax positions as of August 24, 2019. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into United States tax law, which among other provisions lowered the corporate tax rate to 21%. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") 118 to provide guidance for companies that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance with SAB 118, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, as of the date of enactment, and during the twelve months ended November 30, 2018, we revalued all deferred tax assets and liabilities at the newly enacted Federal corporate US income tax rate. This revaluation as of enactment resulted in a non-cash provisional estimate of $77,000 to income tax expense and a corresponding reduction in the net deferred tax asset. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are carried at cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in years) of the assets: Buildings....................................................................................................................................................15 Facility improvements......................................................................................................................... 8-15 Machinery and equipment................................................................................................................. 5-10 Furniture and fixtures ...........................................................................................................................5-8 The Company assesses long-lived assets for impairment in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ASC 360-10-35, Property, Plant and Equipment – Subsequent Measurement Repairs and maintenance are expensed as incurred. Improvements which extend the useful lives of property, plant, and equipment are capitalized. |
Research and Development Costs | Research and Development Costs Costs for the design and development of new products are expensed as incurred. |
2. SIGNIFICANT ACCOUNTING POL_3
2. SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Aug. 24, 2019 | |
Accounting Policies [Abstract] | |
Adjustment to retained earnings | </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Balance at</td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3" style="text-align: center; vertical-align: middle"><b>Balance at</b></td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1pt solid">Assets</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">November 30, 2018</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Adjustment due to Topic 606</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 1, 2018</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify; padding-left: 5.4pt"> Contract assets</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"> Work in process</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,985</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(173</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,812</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center; padding-left: 5.4pt">Deferred income tax net</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">57</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(15</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">42</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-left: 5.4pt">Shareholder equity</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"> Retained Earnings</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,800</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">55</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,855</td><td style="text-align: left"> </td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>" id="sjs-B4"><p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Balance at</td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3" style="text-align: center; vertical-align: middle"><b>Balance at</b></td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1pt solid">Assets</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">November 30, 2018</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Adjustment due to Topic 606</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 1, 2018</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify; padding-left: 5.4pt">   Contract assets</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt">   Work in process</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,985</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(173</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,812</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center; padding-left: 5.4pt">Deferred income tax net</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">57</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(15</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">42</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-left: 5.4pt">Shareholder equity</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt">   Retained Earnings</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,800</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">55</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,855</td><td style="text-align: left"> </td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p> |
Effects of new standard on Condensed Statement of Operations - 3 months | <b><u>Three months ended August 24, 2019</u></b></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p> <p style="margin-top: 0; margin-bottom: 0">adoption of</p> <p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,252</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,116</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(136</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(4,042</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(3,970</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">72</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,381</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,317</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(64</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(193</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(180</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,188</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,137</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(51</td><td style="text-align: left">)</td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p> </p>" id="sjs-B5"><p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Three months ended August 24, 2019</u></b></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p> <p style="margin-top: 0; margin-bottom: 0">adoption of</p> <p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,252</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,116</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(136</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(4,042</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(3,970</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">72</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,381</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,317</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(64</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(193</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(180</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,188</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,137</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(51</td><td style="text-align: left">)</td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p> </p> |
Effects of new standard on Condensed Statement of Operations - 6 months | <b><u>Nine months ended August 24, 2019</u></b></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p> <p style="margin-top: 0; margin-bottom: 0">adoption of</p> <p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,966</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,414</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(552</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(10,138</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(9,769</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">369</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,610</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,427</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(183</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">365</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">327</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(38</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,245</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(145</td><td style="text-align: left">)</td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>" id="sjs-B6"><p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Nine months ended August 24, 2019</u></b></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p> <p style="margin-top: 0; margin-bottom: 0">adoption of</p> <p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,966</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,414</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(552</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(10,138</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(9,769</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">369</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,610</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,427</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(183</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">365</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">327</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(38</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,245</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(145</td><td style="text-align: left">)</td></tr> </table> <p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p> |
Disaggregation of Revenue | 8/24/2019 8/25/2018 Microcircuits $ 5,660 $ 3,121 Optoeletronics 4,730 6,559 Sensors and Displays 7,576 4,162 $ 17,966 $ 13,842 Timing of revenue recognition Recognized at a point in time $ 17,414 $ 13,842 Recognized over time 552 — Total Revenue $ 17,966 $ 13,842 |
Property and equipment schedule of useful lives | Buildings....................................................................................................................................................15 Facility improvements......................................................................................................................... 8-15 Machinery and equipment................................................................................................................. 5-10 Furniture and fixtures ...........................................................................................................................5-8 |
2. SIGNIFICANT ACCOUNTING POL_4
2. SIGNIFICANT ACCOUNTING POLICIES (Details - Adoption) - USD ($) $ in Thousands | Aug. 24, 2019 | Dec. 01, 2018 | Nov. 30, 2018 |
Assets | |||
Work in process | $ 2,310 | $ 1,985 | |
Deferred income tax net | 42 | 57 | |
Shareholder equity | |||
Retained Earnings | $ 26,842 | 24,800 | |
Before Adoption [Member] | |||
Assets | |||
Contract assets | 0 | ||
Work in process | 1,985 | ||
Deferred income tax net | 57 | ||
Shareholder equity | |||
Retained Earnings | 24,800 | ||
Topic 606 [Member] | |||
Assets | |||
Contract assets | 242 | ||
Work in process | (173) | ||
Deferred income tax net | (15) | ||
Shareholder equity | |||
Retained Earnings | $ 55 | ||
After Adoption [Member] | |||
Assets | |||
Contract assets | $ 242 | ||
Work in process | 1,812 | ||
Deferred income tax net | 42 | ||
Shareholder equity | |||
Retained Earnings | $ 24,855 |
2. SIGNIFICANT ACCOUNTING POL_5
2. SIGNIFICANT ACCOUNTING POLICIES (Details - Affect 3 and 6 Months) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Aug. 24, 2019 | Aug. 24, 2019 | |
Net Sales | $ 7,252 | $ 17,966 |
Costs of goods sold | (4,042) | (10,138) |
Income before taxes | 1,381 | 2,610 |
Income tax | (193) | 365 |
New income | 1,188 | 2,245 |
No Adoption [Member] | ||
Net Sales | 7,116 | 17,414 |
Costs of goods sold | (3,970) | (9,769) |
Income before taxes | 1,317 | 2,427 |
Income tax | (180) | 327 |
New income | 1,137 | 2,100 |
Effective Change [Member] | ||
Net Sales | (136) | (552) |
Costs of goods sold | 72 | 369 |
Income before taxes | (64) | (183) |
Income tax | 13 | (38) |
New income | $ (51) | $ (145) |
2. SIGNIFICANT ACCOUNTING POL_6
2. SIGNIFICANT ACCOUNTING POLICIES (Details - Property Lives) | 9 Months Ended |
Aug. 24, 2019 | |
Buildings [Member] | Minimum [Member] | |
Estimated useful lives | 15 years |
Buildings [Member] | Maximum [Member] | |
Estimated useful lives | 15 years |
Facility Improvements [Member] | Minimum [Member] | |
Estimated useful lives | 8 years |
Facility Improvements [Member] | Maximum [Member] | |
Estimated useful lives | 15 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 10 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Estimated useful lives | 8 years |
2. SIGNIFICANT ACCOUNTING POL_7
2. SIGNIFICANT ACCOUNTING POLICIES (Details - Disaggregation of Revenue) - USD ($) $ in Thousands | Aug. 24, 2019 | Aug. 25, 2018 |
Accounting Policies [Abstract] | ||
Microcircuits | $ 5,660 | $ 3,121 |
Optoeletronics | 4,730 | 6,559 |
Sensors and Displays | 7,576 | 4,162 |
Total Sales | 17,966 | 13,842 |
Recognized at a point in time | 17,414 | 13,842 |
Recognized over time | 552 | |
Total Revenue | $ 17,966 | $ 13,842 |
2. SIGNIFICANT ACCOUNTING POL_8
2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Aug. 24, 2019 | Dec. 01, 2018 | |
Accounting Policies [Abstract] | |||
Short term investments maturity date more than 90 days | $ 2,058 | $ 2,081 | |
Increase in retained earnings due to New Accounting Policies | $ 55,000 | ||
Revalued deferred tax assets and liabilities | $ 77,000 |
5. COMMITMENTS (Details Narrati
5. COMMITMENTS (Details Narrative) $ in Thousands | May 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Credit line maximum | $ 6,000,000 |
Minimum working capital of not less than | 4,000,000 |
Balance sheet cash on hand to the extent in excess | $ 2,000,000 |
Maximum EBITDA | 3 |
Minimum EBITDA | 1 |
Maximum free cash flow to debt service | 1.2 |
Minimum free cash flow to debt service | 1 |
6. EARNINGS PER COMMON SHARE (D
6. EARNINGS PER COMMON SHARE (Details Narrative) - shares | 3 Months Ended | |
Aug. 24, 2019 | Feb. 24, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive shares excluded from EPS calculation | 0 | 0 |
7. SHAREHOLDERS' EQUITY (Detail
7. SHAREHOLDERS' EQUITY (Details Narrative) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Aug. 24, 2019 | Aug. 25, 2018 | Aug. 24, 2019 | Aug. 25, 2018 | |
Dividend per share | $ 0.10 | $ 0.10 | ||
Dividend 1 [Member] | ||||
Date of declaration | Dec. 11, 2018 | Dec. 12, 2017 | ||
Dividend per share | $ 0.10 | $ 0.10 | ||
Record date | Jan. 9, 2019 | Jan. 10, 2018 | ||
Dividend paid date | Feb. 8, 2019 | Feb. 8, 2018 |