Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Nov. 30, 2019 | Feb. 10, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | MICROPAC INDUSTRIES INC | |
Entity Central Index Key | 0000065759 | |
Document Type | 10-K | |
Document Period End Date | Nov. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 2,578,315 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2019 | |
Entity Shell Company | false |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2019 | Nov. 30, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 13,890 | $ 10,483 |
Short-term investments | 2,089 | 2,058 |
Receivables, net of allowance for doubtful accounts of $0 at November 30, 2019 and 2018 | 3,382 | 3,772 |
Contract assets | 519 | |
Inventories: | ||
Raw materials and supplies | 4,427 | 4,593 |
Work-in process | 2,616 | 1,985 |
Total inventories | 7,403 | 6,578 |
Prepaid income tax | 407 | |
Prepaid expenses and other assets | 572 | 511 |
Total current assets | 27,495 | 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 | 645 | 607 |
Machinery and equipment | 9,027 | 8,841 |
Total property, plant, and equipment | 13,774 | 13,526 |
Less accumulated depreciation | (10,125) | (9,746) |
Net property, plant, and equipment | 3,649 | 3,780 |
Deferred income taxes, net | 57 | |
Total assets | 31,144 | 27,646 |
CURRENT LIABILITIES: | ||
Accounts payable | 851 | 707 |
Accrued compensation | 1,287 | 747 |
Deferred revenue | 390 | 1,238 |
Property taxes | 104 | 88 |
Income tax | 213 | |
Other accrued liabilities | 26 | 123 |
Total current liabilities | 2,871 | 2,903 |
Deferred income taxes, net | 20 | |
SHAREHOLDERS’ EQUITY | ||
Common stock, $.10 par value, authorized 10,000,000 shares, 3,078,315 issued and 2,578,315 outstanding at November 30 2019 and 2018 | 308 | 308 |
Additional paid-in-capital | 885 | 885 |
Treasury stock, 500,000 shares, at cost | (1,250) | (1,250) |
Retained earnings | 28,310 | 24,800 |
Total shareholders’ equity | 28,253 | 24,743 |
Total liabilities and shareholders equity | $ 31,144 | $ 27,646 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 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 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Income Statement [Abstract] | ||
NET SALES | $ 25,450 | $ 20,967 |
COST AND EXPENSES: | ||
Cost of goods sold | 13,753 | 13,001 |
Research and development | 1,707 | 1,271 |
Selling, general & administrative expenses | 5,673 | 5,384 |
Total cost and expenses | 21,133 | 19,656 |
OPERATING INCOME | 4,317 | 1,312 |
Other income | 27 | 44 |
Interest income, net | 95 | 67 |
INCOME BEFORE INCOME TAXES | 4,439 | 1,422 |
PROVISION (BENEFIT) FOR INCOME TAXES | ||
Current | 663 | (165) |
Deferred | 63 | 146 |
Total tax expense (benefit) provision | 726 | (19) |
NET INCOME | $ 3,713 | $ 1,441 |
NET INCOME PER SHARE, BASIC AND DILUTED | $ 1.44 | $ 0.56 |
WEIGHTED AVERAGE OF SHARES, basic and diluted | 2,578,315 | 2,578,315 |
DIVIDENDS PER SHARE | $ 0.10 | $ 0.10 |
Shareholders Equity
Shareholders Equity - 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 | 1,441 | 1,441 | |||
Ending 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 | 3,713 | 3,713 | |||
Ending Balance at Nov. 30, 2019 | $ 308 | $ 885 | $ (1,250) | $ 28,310 | $ 28,253 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,713 | $ 1,441 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 379 | 319 |
Deferred tax expense | 63 | 146 |
Changes in certain current assets and liabilities: | ||
Increase (decrease) in accounts receivable | 390 | (310) |
(Increase) decrease in contract assets | (276) | |
(Increase) decrease in inventories | (638) | (713) |
Increase in prepaid expenses and other assets | (61) | (237) |
Decrease (increase) decrease in prepaid income taxes | 434 | (203) |
Increase (decrease) in deferred revenue | (847) | 846 |
Increase (decrease) in accounts payable | 144 | 335 |
Increase in accrued compensation | 540 | 43 |
Increase in income taxes payable | 185 | 23 |
(Decrease) increase in all other accrued liabilities | (82) | (16) |
Net cash provided by operating activities | 3,944 | 1,674 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturity of short-term investments | 4,138 | 4,082 |
Purchase of short-term investments | (4,168) | (4,110) |
Additions to property, plant and equipment | (249) | (293) |
Net cash used in investing activities | (279) | (321) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash dividend | (258) | (258) |
Net cash used in financing activities | (258) | (258) |
Net increase in cash and cash equivalents | 3,407 | 1,095 |
Cash and cash equivalents at beginning of period | 10,483 | 9,388 |
Cash and cash equivalents at end of period | 13,890 | 10,483 |
Supplemental Cash Flow Disclosure: | ||
Cash paid for income taxes | $ 44 | $ 16 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 12 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
BUSINESS DESCRIPTION | 1. BUSINESS DESCRIPTION : Micropac Industries, Inc. (the “Company”), a Delaware corporation, designs, manufactures and distributes various types of microelectronic circuits including solid state relays and power controllers, optoelectronic components, and sensor and display 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 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 12 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 2. SUMMARY OF 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 and/or contracts with customers associated with manufacture of products. 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 shipment of products. 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. To the extent our actual costs vary from the fixed price that was negotiated, we will generate more or less profit or could incur a loss. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the Company satisfies a performance obligation. 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. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 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, the Company recognizes revenue for the cost incurred of work in process 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 and the contract require us to manage and limit the level of work in process to meet the scheduled delivery dates. 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 we recognize revenue at the point in time in which each performance obligation is fully satisfied 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 line items within the Company’s Condensed Statement of Operations for three months and year ended November 30, 2019. Three months ended November 30, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 7,484 $ 7,515 $ 31 Cost of goods sold $ (3,615) $ (3,597) $ (18) Income before taxes $ 1,829 $ 1,842 $ 13 Income tax $ 362 $ 365 $ 3 Net Income $ 1,468 $ 1,478 $ 10 Year ended November 30, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 25,450 $ 24,931 $ (519) Cost of goods sold $ 13,753 $ 14,105 $ 352 Income before taxes $ 4,439 $ 4,272 $ (167) Income tax $ 726 $ 691 $ (35) Net Income $ 3,713 $ 3,581 $ (132) Disaggregation of Revenue The following table summarizes the Company’s net sales by product line. Nov. 30, 2019 Nov. 30, 2018 Microelectronics $ 8,037 $ 5,395 Optoelectronics 6,356 5,419 Sensors and Displays 11,057 10,153 $ 25,450 $ 20,967 Timing of revenue recognition Recognized at a point in time $ 24,931 $ 20,967 Recognized over time 519 — Total Revenue $ 25,450 $ 20,967 The following table summarizes the Company’s net sales by major market. 2019 Sales by Major Market Military Space Medical Commercial Total Domestic Direct 6,517 1,777 4,220 1,730 14,244 Domestic Distribution 7,705 210 120 471 8,507 International 358 2,003 — 338 2,699 14,580 3,990 4,341 2,539 25,450 2018 Sales by Major Market Military Space Medical Commercial Total Domestic Direct 8,024 2,285 1,881 1,360 13,550 Domestic Distribution 4,964 178 — 254 5,396 International 535 1,383 — 103 2,021 13,523 3,846 1,881 1,717 20,967 Receivables, net, Contract Assets and Contract Liabilities The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. Receivables, net, contract assets and contract liabilities were as follows: November 30, 2019 November 30, 2018 Receivables, net 3,382 3,772 Contract assets 519 243 Deferred Revenue 390 1,238 Revenue recognized in 2019 that was included in the deferred revenue liability balance at the beginning of the year was $1,024,000. 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 $2,089,000 and $2,058,000 in short-term investments at November 30, 2019 and 2018, respectively. 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 November 30, 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. Basic and Diluted Earnings Per Share Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common shares. During 2019 and 2018, the Company had no dilutive potential common stock. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Nov. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 3. FAIR VALUE MEASUREMENT: The Company had no financial assets and liabilities measured at fair value on a recurring basis as of November 30, 2019 and 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 November 30, 2019 and 2018. |
NOTES PAYABLE TO BANKS
NOTES PAYABLE TO BANKS | 12 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
NOTES PAYABLE TO BANKS | 4. NOTES PAYABLE TO BANKS; 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. |
PRODUCT WARRANTIES
PRODUCT WARRANTIES | 12 Months Ended |
Nov. 30, 2019 | |
Guarantees and Product Warranties [Abstract] | |
PRODUCT WARRANTIES | 5. PRODUCT WARRANTIES In general, the Company warrants that its products, when delivered, will be free from defects in material workmanship under normal use and service. The obligations are limited to replacing, repairing or giving credit for, at the option of the Company, any products that are returned within one year after the date of shipment. The Company does not provide extended warranties. The Company reserves for potential warranty costs based on historical warranty claims experience. While management considers the process to be adequate to effectively quantify its exposure to warranty claims based on historical performance, changes in warranty claims on a specific or cumulative basis may require management to adjust its reserve for potential warranty costs. Warranty expense was approximately $117,000 and $85,000 in 2019 and 2018, respectively. The following table summarizes product warranty activity recorded during the years ended November 30, 2019 and 2018. 2019 2018 Beginning balance $ 25 $ 25 Additions for current year provision 117 85 Payments for current year (117 ) (85 ) Ending balance $ 25 $ 25 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
LEASE COMMITMENTS | 6. LEASE COMMITMENTS: Rent expense for each of the years ended November 30, 2019 and 2018 was $50,000 and $50,000 respectively. The Company has no future minimum lease payments under non-cancellable operating leases for office and manufacturing space with remaining terms in excess of one year. In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Nov. 30, 2019 | |
Postemployment Benefits [Abstract] | |
EMPLOYEE BENEFITS | 7. EMPLOYEE BENEFITS: The Company sponsors an Employees’ Profit Sharing Plan and Trust (the Plan). Pursuant to section 401(k) of the Internal Revenue Code, the Plan is available to substantially all employees of the Company. Employee contributions to the Plan are matched by the Company at amounts up to 6% of the participant’s salary. Contributions made by the Company were expensed and totaled approximately $363,000 in 2019 and $325,000 in 2018. Employees become vested in Company contributions in 20% increments in years two through six of employment. If the employee leaves the Company prior to being fully vested, the unvested portion of the Company contributions are forfeited and such forfeitures are used to lower future Company contributions. The Company does not offer other post-retirement benefits to its employees at this time. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES: The income tax provision (benefit) consisted of the following for the years ended November 30: 2019 2018 Current Provision: Federal $ 625,000 $ (202,000 ) State 38,000 37,000 663,000 (165,000 ) Deferred federal tax expense 63,000 146,000 Total $ 726,000 $ (19,000 ) The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: 2019 2018 Tax at statutory rate $ 932,000 $ 299,000 State income taxes, net of federal benefit 31,000 30,000 Section 199 Adjustment — (32,000 ) Research and Development Tax Credit (277,000 ) (390,000 ) Tax law change — 52,000 Permanent differences and other 40,000 22,000 Income tax provision (benefit) $ 726,000 $ (19,000 ) The components of deferred tax assets and liabilities were as follows: 2019 2018 Deferred tax assets (liabilities) Inventory $ 215,000 $ 215,000 Deferred revenue, sales returns and warranty 8,000 5,000 Other accrued liabilities 35,000 96,000 Depreciation (278,000 ) (259,000 ) Net deferred assets (liabilities) $ (20,000 ) $ 57,000 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax-planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. |
SIGNIFICANT CUSTOMER INFORMATIO
SIGNIFICANT CUSTOMER INFORMATION | 12 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
SIGNIFICANT CUSTOMER INFORMATION | <tr style="vertical-align: top"><td style="width: 27pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">9.</font></td><td style="text-align: justify"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>SIGNIFICANT CUSTOMER INFORMATION:</u></b></font></td></tr></table> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s major customers include contractors to the United States government. Sales to these customers for DOD and NASA contracts accounted for approximately 59% of the Company’s revenues in 2019 compared to 62% in 2018. The Company’s major customers are Lockheed Martin, Northrop Grumman, United Technologies, Raytheon, Boeing and L-3Harris Technologies. The Company’s top 10 customers accounted for 45% of the Company’s sales during 2019 and 49% of the Company’s sales during 2018. One customer accounted for 20% of the Company’s sales during 2019 and three customers accounted for 14%, 13% and 10% of the Company’s sales during 2018.</p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>" id="sjs-B4"><table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"><td style="width: 27pt"><font style="font: 9pt Arial, Helvetica, Sans-Serif">9.</font></td><td style="text-align: justify"><font style="font: 9pt Arial, Helvetica, Sans-Serif"><b><u>SIGNIFICANT CUSTOMER INFORMATION:</u></b></font></td></tr></table> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s major customers include contractors to the United States government. Sales to these customers for DOD and NASA contracts accounted for approximately 59% of the Company’s revenues in 2019 compared to 62% in 2018. The Company’s major customers are Lockheed Martin, Northrop Grumman, United Technologies, Raytheon, Boeing and L-3Harris Technologies. The Company’s top 10 customers accounted for 45% of the Company’s sales during 2019 and 49% of the Company’s sales during 2018. One customer accounted for 20% of the Company’s sales during 2019 and three customers accounted for 14%, 13% and 10% of the Company’s sales during 2018.</p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> |
SHAREHOLDERS_ EQUITY NOTES
SHAREHOLDERS’ EQUITY NOTES | 12 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | 10. 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Nov. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS: On December 10, 2019, 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 8, 2020. The dividend will be paid to shareholders on or about February 14, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 12 Months Ended |
Nov. 30, 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 and/or contracts with customers associated with manufacture of products. 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 shipment of products. 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. To the extent our actual costs vary from the fixed price that was negotiated, we will generate more or less profit or could incur a loss. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the Company satisfies a performance obligation. 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. The Company accounting policy treats shipping and handling activities as a fulfillment cost. 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, the Company recognizes revenue for the cost incurred of work in process 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 and the contract require us to manage and limit the level of work in process to meet the scheduled delivery dates. 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 we recognize revenue at the point in time in which each performance obligation is fully satisfied 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 line items within the Company’s Condensed Statement of Operations for three months and year ended November 30, 2019. Three months ended November 30, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 7,484 $ 7,515 $ 31 Cost of goods sold $ (3,615) $ (3,597) $ (18) Income before taxes $ 1,829 $ 1,842 $ 13 Income tax $ 362 $ 365 $ 3 Net Income $ 1,468 $ 1,478 $ 10 Year ended November 30, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 25,450 $ 24,931 $ (519) Cost of goods sold $ 13,753 $ 14,105 $ 352 Income before taxes $ 4,439 $ 4,272 $ (167) Income tax $ 726 $ 691 $ (35) Net Income $ 3,713 $ 3,581 $ (132) Disaggregation of Revenue The following table summarizes the Company’s net sales by product line. Nov. 30, 2019 Nov. 30, 2018 Microelectronics $ 8,037 $ 5,395 Optoelectronics 6,356 5,419 Sensors and Displays 11,057 10,153 $ 25,450 $ 20,967 Timing of revenue recognition Recognized at a point in time $ 24,931 $ 20,967 Recognized over time 519 — Total Revenue $ 25,450 $ 20,967 The following table summarizes the Company’s net sales by major market. 2019 Sales by Major Market Military Space Medical Commercial Total Domestic Direct 6,517 1,777 4,220 1,730 14,244 Domestic Distribution 7,705 210 120 471 8,507 International 358 2,003 — 338 2,699 14,580 3,990 4,341 2,539 25,450 2018 Sales by Major Market Military Space Medical Commercial Total Domestic Direct 8,024 2,285 1,881 1,360 13,550 Domestic Distribution 4,964 178 — 254 5,396 International 535 1,383 — 103 2,021 13,523 3,846 1,881 1,717 20,967 Receivables, net, Contract Assets and Contract Liabilities The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. Receivables, net, contract assets and contract liabilities were as follows: November 30, 2019 November 30, 2018 Receivables, net 3,382 3,772 Contract assets 519 243 Deferred Revenue 390 1,238 Revenue recognized in 2019 that was included in the deferred revenue liability balance at the beginning of the year was $1,024,000. 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 $2,089,000 and $2,058,000 in short-term investments at November 30, 2019 and 2018, respectively. 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 November 30, 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. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common shares. During 2019 and 2018, the Company had no dilutive potential common stock. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Adoption of new accounting policy on retained earnings | 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 |
Adoption of new accounting policy on statement of operations | Three months ended November 30, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 7,484 $ 7,515 $ 31 Cost of goods sold $ (3,615) $ (3,597) $ (18) Income before taxes $ 1,829 $ 1,842 $ 13 Income tax $ 362 $ 365 $ 3 Net Income $ 1,468 $ 1,478 $ 10 Year ended November 30, 2019 As Reported Balance without adoption of Topic 606 Effect of change Net sales $ 25,450 $ 24,931 $ (519) Cost of goods sold $ 13,753 $ 14,105 $ 352 Income before taxes $ 4,439 $ 4,272 $ (167) Income tax $ 726 $ 691 $ (35) Net Income $ 3,713 $ 3,581 $ (132) |
Net sale by product line | Nov. 30, 2019 Nov. 30, 2018 Microelectronics $ 8,037 $ 5,395 Optoelectronics 6,356 5,419 Sensors and Displays 11,057 10,153 $ 25,450 $ 20,967 Timing of revenue recognition Recognized at a point in time $ 24,931 $ 20,967 Recognized over time 519 — Total Revenue $ 25,450 $ 20,967 |
Net sale by major market | 2019 Sales by Major Market Military Space Medical Commercial Total Domestic Direct 6,517 1,777 4,220 1,730 14,244 Domestic Distribution 7,705 210 120 471 8,507 International 358 2,003 — 338 2,699 14,580 3,990 4,341 2,539 25,450 2018 Sales by Major Market Military Space Medical Commercial Total Domestic Direct 8,024 2,285 1,881 1,360 13,550 Domestic Distribution 4,964 178 — 254 5,396 International 535 1,383 — 103 2,021 13,523 3,846 1,881 1,717 20,967 |
Receivables, net, Contract Assets and Contract Liabilities | November 30, 2019 November 30, 2018 Receivables, net 3,382 3,772 Contract assets 519 243 Deferred Revenue 390 1,238 |
Property, Plant and Equipment | Buildings.......................................................................................................................................................................... 15 Facility improvements................................................................................................................................................ 8-15 Machinery and equipment......................................................................................................................................... 5-10 Furniture and fixtures.................................................................................................................................................... 5-8 |
PRODUCT WARRANTIES (Tables)
PRODUCT WARRANTIES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Guarantees and Product Warranties [Abstract] | |
Product warranty activity | 5. PRODUCT WARRANTIES In general, the Company warrants that its products, when delivered, will be free from defects in material workmanship under normal use and service. The obligations are limited to replacing, repairing or giving credit for, at the option of the Company, any products that are returned within one year after the date of shipment. The Company does not provide extended warranties. The Company reserves for potential warranty costs based on historical warranty claims experience. While management considers the process to be adequate to effectively quantify its exposure to warranty claims based on historical performance, changes in warranty claims on a specific or cumulative basis may require management to adjust its reserve for potential warranty costs. Warranty expense was approximately $117,000 and $85,000 in 2019 and 2018, respectively. The following table summarizes product warranty activity recorded during the years ended November 30, 2019 and 2018. 2019 2018 Beginning balance $ 25 $ 25 Additions for current year provision 117 85 Payments for current year (117 ) (85 ) Ending balance $ 25 $ 25 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | 2019 2018 Current Provision: Federal $ 625,000 $ (202,000 ) State 38,000 37,000 663,000 (165,000 ) Deferred federal tax expense 63,000 146,000 Total $ 726,000 $ (19,000 ) |
Schedule of Reconciliation of Income Tax Expense using U. S. Statutory Federal Tax Rate to Actual Income Tax Expense | 2019 2018 Tax at statutory rate $ 932,000 $ 299,000 State income taxes, net of federal benefit 31,000 30,000 Section 199 Adjustment — (32,000 ) Research and Development Tax Credit (277,000 ) (390,000 ) Tax law change — 52,000 Permanent differences and other 40,000 22,000 Income tax provision (benefit) $ 726,000 $ (19,000 ) |
Schedule of Deferred Tax Assets and Liabilities | 2019 2018 Deferred tax assets (liabilities) Inventory $ 215,000 $ 215,000 Deferred revenue, sales returns and warranty 8,000 5,000 Other accrued liabilities 35,000 96,000 Depreciation (278,000 ) (259,000 ) Net deferred assets (liabilities) $ (20,000 ) $ 57,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADOPTION NEW ACCT POLICY RETAINED EARNINGS (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2018 |
Assets | |||
Contract assets | $ 519 | $ 242 | |
Work in process | 2,616 | 1,812 | 1,985 |
Deferred income tax net | 42 | 57 | |
Shareholder equity | |||
Retained earnings | $ 28,310 | 24,855 | $ 24,800 |
Adjustment due to Topic 606 [Member] | |||
Assets | |||
Contract assets | 242 | ||
Work in process | (173) | ||
Deferred income tax net | (15) | ||
Shareholder equity | |||
Retained earnings | $ 55 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADOPTION NEW ACCT POLICY STMT OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2019 | Nov. 30, 2018 | |
Net sales | $ 7,484 | $ 25,450 | $ 20,967 |
Costs of goods sold | (3,615) | 13,753 | 13,001 |
Income before taxes | 1,829 | 4,439 | 1,422 |
Income tax | 362 | 726 | (19) |
Net income | 1,468 | 3,713 | $ 1,441 |
Balance Without Topic 606 [Member] | |||
Net sales | 7,515 | 24,931 | |
Costs of goods sold | (3,597) | 14,105 | |
Income before taxes | 1,842 | 4,272 | |
Income tax | 365 | 691 | |
Net income | 1,478 | 3,581 | |
Effect of Topic 606 [Member] | |||
Net sales | 31 | (519) | |
Costs of goods sold | (18) | 352 | |
Income before taxes | 13 | (167) | |
Income tax | 3 | (35) | |
Net income | $ 10 | $ (132) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: NET SALE BY PRODUCT LINE (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Nov. 30, 2018 |
Accounting Policies [Abstract] | ||
Microelectronics | $ 8,037 | $ 5,395 |
Optoelectronics | 6,356 | 5,419 |
Sensors and Displays | 11,057 | 10,153 |
Total sales | 25,450 | 20,967 |
Recognized at a point in time | 24,931 | 20,967 |
Recognized over time | 519 | |
Total Revenus | $ 25,450 | $ 20,967 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: NET SALE BY MAJOR MARKET (Details) | Nov. 30, 2019 | Nov. 30, 2018 |
Military [Member] | ||
Domestic Direct | 6,517 | 8,024 |
Domestic Distribution | 7,706 | 4,963 |
International | 358 | 535 |
Total Sales | 14,580 | 13,523 |
Space [Member] | ||
Domestic Direct | 1,777 | 2,285 |
Domestic Distribution | 210 | 178 |
International | 2,003 | 1,384 |
Total Sales | 3,991 | 3,847 |
Medical [Member] | ||
Domestic Direct | 4,220 | 1,881 |
Domestic Distribution | 120 | |
International | ||
Total Sales | 4,341 | 1,881 |
Commercial [Member] | ||
Domestic Direct | 1,730 | 1,360 |
Domestic Distribution | 471 | 254 |
International | 338 | 103 |
Total Sales | 2,539 | 1,717 |
Total [Member] | ||
Domestic Direct | 14,244 | 13,550 |
Domestic Distribution | 8,507 | 5,396 |
International | 2,699 | 2,021 |
Total Sales | 25,450 | 20,967 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECEIVABLES NET CONTRACT ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2018 |
Accounting Policies [Abstract] | |||
Receivables, net | $ 3,382 | $ 3,772 | |
Contract assets | 519 | $ 242 | |
Deferred revenue | $ 390 | $ 1,238 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: PROPERTY, PLANT AND EQUIPMENT (Details) | 12 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
BuildingsAverageLife | 15 years |
Facility Improvements Useful Life (Minimum) | 8 years |
Facility Improvements Useful Life(Maximum) | 15 years |
Machinery and Equipment Useful Life (Minimum) | 5 years |
Machinery and Equipment Useful Life (Maximum) | 10 years |
Furniture And Fixtures Useful Life (Minimum) | 5 years |
Furniture And Fixtures Useful Life (Maximum) | 8 years |
PRODUCT WARRANTIES_ ACTIVITY (D
PRODUCT WARRANTIES: ACTIVITY (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Guarantees and Product Warranties [Abstract] | ||
Beginning Balance | $ 25 | $ 25 |
Additions for current year provision | 117 | 85 |
Payments for current year | (117) | (85) |
Ending Balance | $ 25 | $ 25 |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Current Provision: | ||
Federal | $ 625,000 | $ (202,000) |
State | 38,000 | 37,000 |
Total current provision | 663,000 | (165,000) |
Deferred federal tax expense | 63,000 | 146,000 |
Total | $ 726,000 | $ (19,000) |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Income Tax Expense using U. S. Statutory Federal Tax Rate to Actual Income Tax Expense (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Nov. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Tax at 34% statutory rate | $ 932,000 | $ 299,000 |
State income taxes, net of federal benefit | 31,000 | 30,000 |
Section 199 Adjustment | (32,000) | |
Research and Development Tax Credit | (277,000) | (390,000) |
Tax law change | 52,000 | |
Permanent differences and other | 40,000 | 22,000 |
Income tax provision | $ 726,000 | $ (19,000) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Nov. 30, 2018 |
Deferred tax assets (liabilities) | ||
Inventory | $ 215,000 | $ 215,000 |
Deferred revenue, sales returns and warranty | 8,000 | 5,000 |
Other accrued liabilities | 35,000 | 96,000 |
Depreciation | (278,000) | (259,000) |
Net deferred assets | $ (20,000) | $ 57,000 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | Nov. 30, 2019 | Nov. 30, 2018 |
Accounting Policies [Abstract] | ||
Short-term investments maturity date more than 90 days | $ 2,089 | $ 2,058 |
Net deferred tax asset | $ 77,000 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
Financial assets or liabilities measured at fair value on a recurring basis | $ 0 | $ 0 |
Nonfinancial assets measured at fair value on a nonrecurring basis | $ 0 | $ 0 |
NOTES PAYABLE TO BANKS (Details
NOTES PAYABLE TO BANKS (Details Narrative) $ in Thousands | May 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loan Agreement provides for revolving credit loans | $ 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 |
PRODUCT WARRANTIES (Details Nar
PRODUCT WARRANTIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Guarantees and Product Warranties [Abstract] | ||
Warranty expense | $ 117,000 | $ 85,000 |
LEASE COMMITMENTS (Details Narr
LEASE COMMITMENTS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Leases [Abstract] | ||
Rent expense | $ 50,000 | $ 50,000 |
EMPLOYEE BENEFITS (Details Narr
EMPLOYEE BENEFITS (Details Narrative) - USD ($) $ in Thousands | Nov. 30, 2019 | Nov. 30, 2018 |
Postemployment Benefits [Abstract] | ||
Percentage of Employee contributions to the Plan are matched by the Company at the amounts of the participant's salary. | 6.00% | |
Contributions made by the company totaled to | $ 363,000 | $ 325,000 |
Employees become vested in company contributions from two to six years | 20.00% |
SIGNIFICANT CUSTOMER INFORMAT_2
SIGNIFICANT CUSTOMER INFORMATION (Details Narrative) | Nov. 30, 2019 | Nov. 30, 2018 |
Segment Reporting [Abstract] | ||
Sales to these customers for the Department of Defense (DOD) and NASA contracts accounted for approximately | 59.00% | 62.00% |
Company's top 10 customers accounted for sales | 45.00% | 49.00% |
One customer accounted for accounts receivable balance | 20.00% | |
Three customers accounted for accounts receivable balance | 14.00% | |
Three customers accounted for accounts receivable balance | 13.00% | |
Three customers accounted for accounts receivable balance | 10.00% |
SHAREHOLDERS_ EQUITY NOTES (Det
SHAREHOLDERS’ EQUITY NOTES (Details Narrative) | Dec. 11, 2018 | Dec. 12, 2017 |
Equity [Abstract] | ||
Payment of special dividend to all shareholders | 0.10 | 0.10 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Dec. 10, 2019 |
Subsequent Events [Abstract] | |
Approved payment of special dividend | 0.10 |