Document and Entity Information
Document and Entity Information | 12 Months Ended |
Apr. 30, 2019USD ($)shares | |
Document And Entity Information | |
Entity Registrant Name | BIOSYNERGY INC |
Entity Central Index Key | 0000715812 |
Document Type | 10-K |
Document Period End Date | Apr. 30, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --04-30 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Public Float | $ | $ 8,029,291 |
Entity Common Stock, Shares Outstanding | shares | 14,935,511 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Emerging Growth Company | false |
Entity Small Business | true |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | IL |
Entity File Number | 0-12459 |
Balance Sheets
Balance Sheets - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Current Assets | ||
Cash | $ 1,180,125 | $ 1,140,428 |
Accounts receivable - Trade (Net of allowance for doubtful accounts of $500 in both 2019 and 2018) | 246,363 | 230,701 |
Inventories | 162,678 | 141,045 |
Prepaid expenses | 57,658 | 55,845 |
Total current assets | 1,646,824 | 1,568,019 |
Property, Plant and Equipment | ||
Equipment | 201,489 | 201,764 |
Leasehold improvements | 25,809 | 23,447 |
[PropertyPlantAndEquipmentGross] | 227,298 | 225,211 |
Less accumulated depreciation and amortization | 214,982 | 215,371 |
Total equipment and leasehold improvements | 12,316 | 9,840 |
Operating Lease Right of Use | ||
Operating Lease Right of Use Asset | 89,100 | |
Total Operating Lease Right of Use Asset | 89,100 | |
Other Assets | ||
Patents less accumulated amortization | 118,702 | 61,687 |
Patents pending | 69,420 | |
Deposits | 5,937 | 5,937 |
Total other assets | 124,639 | 137,044 |
[Assets] | 1,872,879 | 1,714,903 |
Current Liabilities | ||
Accounts payable | 4,538 | 9,373 |
Accrued compensation and payroll taxes | 39,766 | 25,992 |
Other accrued liabilities | 209 | 10,996 |
Accrued vacation | 21,578 | 24,271 |
Operating Lease Liabilities | 90,200 | |
Total current liabilities | 156,291 | 70,632 |
Deferred income taxes | 24,272 | 25,440 |
Stockholders Equity | ||
Common stock - No par value; 20,000,000 shares authorized; 14,935,511 shares issued as of both April 30, 2019 and 2018 | 660,988 | 660,988 |
Receivable from affiliate | (19,699) | (19,699) |
Retained earnings | 1,051,027 | 977,542 |
Total stockholders equity | 1,692,316 | 1,618,831 |
[LiabilitiesAndStockholdersEquity] | $ 1,872,879 | $ 1,714,903 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 500 | $ 500 |
Common stock, no par value | 20,000,000 | 20,000,000 |
Authorized shares issued and outstanding | 14,935,511 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,291,529 | $ 1,214,213 |
Cost of sales | 422,654 | 391,969 |
Gross profit | 868,875 | 822,244 |
Operating Expenses | ||
Marketing | 189,236 | 186,825 |
General and administrative | 418,960 | 433,130 |
Research and development | 160,350 | 169,892 |
Total operating expenses | 768,546 | 789,847 |
Income from operations | 100,329 | 32,397 |
Other Income | ||
Interest income | 534 | 394 |
Other income | 1,920 | 1,920 |
Total other income | 2,454 | 2,314 |
Net income before income taxes | 102,783 | 34,711 |
Provision for income taxes | 29,298 | 1,600 |
Net income | $ 73,485 | $ 33,111 |
Net income per common share-basic and diluted | $ 0.005 | $ 0.002 |
Weighted-average common stock outstanding-basic and diluted | 14,935,511 | 14,935,511 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 73,485 | $ 33,111 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 22,051 | 18,730 |
Noncash Lease Expense | 88,000 | |
Deferred income taxes | (1,168) | (9,360) |
Changes in assets and liabilities | ||
Accounts receivable | (15,662) | 36,844 |
Inventories, prepaid expenses and other | (23,446) | 21,587 |
Accounts payable and accrued expenses | (4,541) | (1,066) |
Building lease liability for right of use | (88,000) | |
Total adjustments | (22,766) | 66,735 |
Net cash (used in) provided by operating activities | 50,719 | 99,846 |
Cash Flows from Investing Activities | ||
Purchase of equipment | (11,022) | |
Net cash used in investing activities | (11,022) | |
Increase (decrease) in cash | 39,697 | 99,846 |
Cash, beginning of year | 1,140,428 | 1,040,582 |
Cash, end of year | 1,180,125 | 1,140,428 |
Income taxes paid | 37,000 | 31,600 |
Interest paid | ||
Initial Right of Use Lease Asset and Liability | $ 178,200 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Other and Related Receivable | Retained Earnings | Total |
Beginning Balance at Apr. 30, 2017 | $ (19,699) | $ 944,431 | $ 1,585,720 | |
Common Stock Outstanding at Apr. 30, 2017 | 14,935,511 | |||
Common Stock Value at Apr. 30, 2018 | $ 660,988 | |||
Net Income | 33,111 | 33,111 | ||
Ending Balance at Apr. 30, 2018 | (19,699) | 977,542 | 1,618,831 | |
Common Stock Outstanding at Apr. 30, 2018 | 14,935,511 | |||
Common Stock Value at Apr. 30, 2019 | $ 660,988 | |||
Net Income | 73,485 | 73,485 | ||
Ending Balance at Apr. 30, 2019 | $ (19,699) | $ 1,051,027 | $ 1,692,316 |
Company Organization and Descri
Company Organization and Description | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Company Organization and Description | Biosynergy, Inc. (the Company) was incorporated under the laws of the state of Illinois on February 9, 1976. The Company is primarily engaged in the development and marketing of medical, consumer and industrial thermometric and thermographic products that utilize cholesteric liquid crystals. The Company’s primary product, the HemoTemp R |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Summary of Significant Accounting Policies | Cash The Company maintains all of its cash in bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts. All cash is held with Bank of America, N.A., and BMO Harris, N.A. Receivables Receivables are carried at original invoice less estimates made for doubtful receivables. Management determines the allowance for doubtful accounts by reviewing and identifying troubled accounts on a periodic basis by using historical experience applied to an aging of accounts. A receivable is considered to be past due if any portion of the receivable balance is outstanding beyond the stipulated due date. Receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. Inventories Inventories are valued using the FIFO (first-in, first-out) method at the lower of cost or market. Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the respective assets. Repairs and maintenance are charged to expense as incurred. Renewals and betterments, which significantly extend the useful lives of existing equipment, are capitalized. Significant leasehold improvements are capitalized and amortized over ten years or the term of the lease, if shorter. Equipment is depreciated over three to ten years. Prepaid Expenses Certain expenses, primarily insurance and income taxes, have been prepaid and will be used within one year. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC) 605, Revenue Recognition The Company adopted this standard on May 1, 2018, using the modified retrospective approach. The impact of the adoption of ASU 2014-09 on the Company’s condensed consolidated financial statements is as follows: · The Company’s revenue is primarily generated from the sales of products directly to customers or through distribution channels, based on purchase orders and not supply contracts providing for additional goods or services once the products are transferred to the customer. The Company’s performance obligations underlying such sales, and the timing of revenue recognition related thereto, remain substantially unchanged following the adoption of this ASU. · The adoption of ASU No. 2014-09 requires that the Company recognize its sales return allowance on a gross basis rather than as a net liability. As such, the Company now recognizes a return asset for the right to recover the goods returned by the customer, measured at the former carrying amount of the products, less any expected recovery costs (recorded as an increase to prepaid expenses and other current assets), and a return liability for the amount of expected returns (recorded as an increase to other current liabilities), and the Company’s analysis of sales returns over the past several years noted that sales returns are nominal and therefore no sales return allowance is deemed necessary. There was no adjustment necessary for fiscal year ending April 30, 2018 or prior in relation to the change in the revenue recognition policy and no significant effects on the fiscal year ending April 30, 2019. Shipping and Handling Shipping and handling fees billed to customer, if any, are netted against the related costs which are included in cost of sales. The net cost is not material. Income Taxes Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due and deferred taxes related primarily to differences in the methods of accounting for patents, inventories, certain accrued expenses and bad debt expenses for financial and income tax reporting purposes. The deferred income taxes represent the future tax consequences of those differences, which will be taxable in the future. See Note 4 for additional information regarding income taxes. The Company files tax returns in the U.S. federal jurisdiction and with the state of Illinois. Various tax years remain open to examinations, generally for three years after filing, although there are currently no ongoing tax examinations. Management’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. Management does not believe that there are any uncertain tax positions as of April 30, 2019. Leases The Company accounts for leases under ASC 842. Lease arrangements are determined at the inception of the contract. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities on the Company’s balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities on our balance sheets. Research and Development and Patents Research and development expenditures are charged to operations as incurred. The costs of obtaining patents, primarily legal fees, are capitalized and, once obtained, are amortized over the life of the respective patent using the straight-line method. Patents relate to products that have been developed and are being marketed by the Company. Patents pending relate to products under development. 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 as of 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. Income Per Common Share Income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Basic and diluted net income per common share is the same for the years ended April 30, 2019 and 2018 as there are no common stock equivalents. Fair Value of Financial Instruments The Company evaluates its financial instruments based on current market interest rates relative to stated interest rates, length to maturity and the existence of readily determinable market prices. Based on the Company’s analysis, the fair value of financial instruments recorded on the balance sheets as of April 30, 2019 and 2018, approximates their carrying value. Segments Accounting standards have established annual reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. The Company’s operations were a single reportable segment and an international segment. The international segment operations are immaterial. Recent Accounting Pronouncements The FASB issues ASUs to amend the authoritative literature in Accounting Standards Certification (ASC). There have been a number of ASUs to date that amend the original text of ASCs. Except for the ASUs issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company. |
Inventories
Inventories | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Inventories | 2019 2018 Raw Materials $ 112,499 $ 97,319 Work-in-process 32,882 24,624 Finished goods 17,297 19,102 $ 162,678 $ 141,045 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The components of the deferred income tax (assets) and liabilities as of April 30, 2019 and 2018 are as follows: 2019 2018 Total deferred tax liabilities Patents $ 27,823 $ 30,785 Prepaid and other 5,951 7,296 33,774 38,081 Total deferred tax assets Accrued vacation pay (5,865 ) (6,632 ) Equipment and leaseholds (3,495 ) (4,223 ) Other (142 ) (1,786 ) (9,502 ) (12,641 ) Net deferred income tax liabilities $ 24,272 $ 25,440 Deferred income tax liabilities result primarily from prepaid expenses and capitalized legal costs associated with patents that are deducted immediately for income tax purposes. Deferred income tax assets result primarily from accrued vacation pay, which is not deducted for tax purposes unless it is paid within 2½ months of each year-end, other expenses, which are not deductible for tax purposes until paid and from differences between depreciation expense for book and tax purposes. On December 22, 2017 the Tax Cuts and Jobs Act (the “Act”) was signed into law. Among other provisions, the Act reduces the Federal statutory corporate income tax rate from 35% to 21% starting in 2018. We have incorporated the new rates in our deferred tax calculations for the year ended April 30, 2018, and the effects are reflected in our financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for annual periods beginning after December 15, 2017. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during the year ended April 30, 2018, on a retrospective basis. There was no direct impact on the audited financial statements. The provision for income taxes consists of the following components: 2019 2018 Current Federal $ 20,312 $ 6,618 State 10,154 4,342 30,466 10,960 Deferred (1,168) (9,360) $ 29,298 $ 1,600 The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate are as follows: Year Ended April 30, 2019 2018 U.S. federal statutory tax rate 21.0 % 34.0 % State income tax expense, net of 9.5% 7.7% Effect of graduated federal tax rates and other --- (23.2 ) Effect of new tax law (2.0) (13.9) Effective tax rate 28.5 % 4.6 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Related Party Transactions | The Company and its affiliates are related through common stock ownership as follows as of April 30, 2019: Stock of Affiliates Biosynergy, Inc. F.K. Suzuki International, Inc. Medlab, Inc. F.K. Suzuki International, Inc. 30.0 % — % 100 % Fred K. Suzuki, Officer 4.1 30.0 — Jeanne S. Addis, as Trustee — 28.1 — Mary K. Friske, Officer 0.3 0.7 — Laurence C. Mead, Officer 0.4 10.0 — Beverly R. Suzuki 2.7 — — Lauane C. Addis, Officer — — — Malcolm MacCoun, Director — — — As of April 30, 2019 and 2018, $19,699 was due from F.K. Suzuki International, Inc. (FKSI). This balance is resulted from an allocation of common expenses charged to FKSI offset by advances received from time to time. No interest income is received or accrued by the Company. The financial condition of FKSI is such that it will likely be unable to repay the Company without liquidating a portion of its assets, including a portion of its ownership in the Company. As a result, the total receivable balance of $19,699 was reclassified as a contra equity account. A board member provides a variety of legal services to the Company in his capacity as a partner in a law firm. Fees for such legal services were $19,472 and $24,590 for the years ended April 30, 2019 and 2018, respectively. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Lease Commitments | On February 25, 2016, the FASB issued Topic 842, Leases. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. GAAP. The amendments are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. At inception, a lessee must classify all leases as either finance or operating. In February 2018, the Company entered into a two-year lease agreement for its current facilities, which started May 1, 2018 and expires on April 30, 2020. Under the new lease standard, which was early-adopted by the Company as of May 1, 2018, the Company’s lease was accounted for as an operating lease. As a result, the Company measured the lease liability using the two year term and rates per the lease agreement and recognized a lease liability, with a corresponding right-of-use asset. A discount was not calculated due to the lease agreement only having a two year term. We have elected certain practical expedients available under the guidance, including a package of practical expedients which allows us to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs. We have also elected to not separate non-lease components from the associated lease component. Additionally, the Company elected to not recast its comparative periods. The comparative periods will follow the guidance of ASC 840, while the current period will follow the guidance of the new ASC 842. Maturities of lease liabilities as of April 30, 2019 are presented in the following table: Year Ending April 30: 2020 $90,200 Rent expense was $89,100 and $86,700 for fiscal years ended April 30, 2019 and 2018. |
Customer Concentrations
Customer Concentrations | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Customer Concentrations | Shipments to one customer amounted to approximately 28.4% and 28.3% of sales in fiscal years 2019 and 2018, respectively. As of April 30, 2019 and 2018, there were outstanding accounts receivable from this customer of approximately $67,633 and $59,688, respectively. Shipments to another customer accounted for 40.1% and 38.1% of sales in fiscal years 2019 and 2018, respectively. As of April 30, 2019 and 2018, there were outstanding accounts receivable from this customer of approximately $147,825 and $138,823, respectively. The Company had export sales of $72,265 during the last fiscal year, and export sales of $42,355 during the fiscal year ending in 2018. The Company also believes that some of its medical devices were sold to distributors within the United States who resold the devices in foreign markets. However, the Company does not have any information regarding such sales, and such sales are not considered to be material. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Employee Benefit Plan | The Company sponsors a 401(k) plan for all full-time employees. Under the plan, a participant may elect to defer compensation (up to allowable limits). The Company's discretionary matching contributions for the years ended April 30, 2019 and 2018 were $25,348 and $23,736, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Cash | The Company maintains all of its cash in bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts. All cash is held with Bank of America, N.A., and BMO Harris, N.A. |
Receivables | Receivables are carried at original invoice less estimates made for doubtful receivables. Management determines the allowance for doubtful accounts by reviewing and identifying troubled accounts on a periodic basis by using historical experience applied to an aging of accounts. A receivable is considered to be past due if any portion of the receivable balance is outstanding beyond the stipulated due date. Receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. |
Inventories | Inventories are valued using the FIFO (first-in, first-out) method at the lower of cost or market. |
Depreciation and Amortization | Equipment and leasehold improvements are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the respective assets. Repairs and maintenance are charged to expense as incurred. Renewals and betterments, which significantly extend the useful lives of existing equipment, are capitalized. Significant leasehold improvements are capitalized and amortized over ten years or the term of the lease, if shorter. Equipment is depreciated over three to ten years. |
Prepaid Expenses | Certain expenses, primarily insurance and income taxes, have been prepaid and will be used within one year. |
Revenue Recognition | In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC) 605, Revenue Recognition The Company adopted this standard on May 1, 2018, using the modified retrospective approach. The impact of the adoption of ASU 2014-09 on the Company’s condensed consolidated financial statements is as follows: · The Company’s revenue is primarily generated from the sales of products directly to customers or through distribution channels, based on purchase orders and not supply contracts providing for additional goods or services once the products are transferred to the customer. The Company’s performance obligations underlying such sales, and the timing of revenue recognition related thereto, remain substantially unchanged following the adoption of this ASU. · The adoption of ASU No. 2014-09 requires that the Company recognize its sales return allowance on a gross basis rather than as a net liability. As such, the Company now recognizes a return asset for the right to recover the goods returned by the customer, measured at the former carrying amount of the products, less any expected recovery costs (recorded as an increase to prepaid expenses and other current assets), and a return liability for the amount of expected returns (recorded as an increase to other current liabilities), and the Company’s analysis of sales returns over the past several years noted that sales returns are nominal and therefore no sales return allowance is deemed necessary. There was no adjustment necessary for fiscal year ending April 30, 2018 or prior in relation to the change in the revenue recognition policy and no significant effects on the fiscal year ending April 30, 2019. |
Shipping and Handling | Shipping and handling fees billed to customer, if any, are netted against the related costs which are included in cost of sales. The net cost is not material. |
Income Taxes | Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due and deferred taxes related primarily to differences in the methods of accounting for patents, inventories, certain accrued expenses and bad debt expenses for financial and income tax reporting purposes. The deferred income taxes represent the future tax consequences of those differences, which will be taxable in the future. See Note 4 for additional information regarding income taxes. The Company files tax returns in the U.S. federal jurisdiction and with the state of Illinois. Various tax years remain open to examinations, generally for three years after filing, although there are currently no ongoing tax examinations. Management’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. Management does not believe that there are any uncertain tax positions as of April 30, 2019. |
Leases | The Company accounts for leases under ASC 842. Lease arrangements are determined at the inception of the contract. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities on the Company’s balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities on our balance sheets. |
Research and Development and Patents | Research and development expenditures are charged to operations as incurred. The costs of obtaining patents, primarily legal fees, are capitalized and, once obtained, are amortized over the life of the respective patent using the straight-line method. Patents relate to products that have been developed and are being marketed by the Company. Patents pending relate to products under development. |
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 as of 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. |
Income Per Common Share | Income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Basic and diluted net income per common share is the same for the years ended April 30, 2019 and 2018 as there are no common stock equivalents. |
Fair Value of Financial Instruments | The Company evaluates its financial instruments based on current market interest rates relative to stated interest rates, length to maturity and the existence of readily determinable market prices. Based on the Company’s analysis, the fair value of financial instruments recorded on the balance sheets as of April 30, 2019 and 2018, approximates their carrying value. |
Segments | Accounting standards have established annual reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. The Company’s operations were a single reportable segment and an international segment. The international segment operations are immaterial. |
Recent Accounting Pronouncements | The FASB issues ASUs to amend the authoritative literature in Accounting Standards Certification (ASC). There have been a number of ASUs to date that amend the original text of ASCs. Except for the ASUs issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Inventories | 2019 2018 Raw Materials $ 112,499 $ 97,319 Work-in-process 32,882 24,624 Finished goods 17,297 19,102 $ 162,678 $ 141,045 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Deferred Income Tax Liabilities | 2019 2018 Total deferred tax liabilities Patents $ 27,823 $ 30,785 Prepaid and other 5,951 7,296 33,774 38,081 Total deferred tax assets Accrued vacation pay (5,865 ) (6,632 ) Equipment and leaseholds (3,495 ) (4,223 ) Other (142 ) (1,786 ) (9,502 ) (12,641 ) Net deferred income tax liabilities $ 24,272 $ 25,440 |
Components of Income Taxes | 2019 2018 Current Federal $ 20,312 $ 6,618 State 10,154 4,432 30,466 10,960 Deferred (1,168 ) (9,360 ) $ 29,298 $ 1,600 |
Effective Tax Rate | 2019 2018 U.S. federal statutory tax rate 21.0 % 34.0 % State income tax expense, net of federal tax benefit 9.5 % 7.7 % Effect of graduated federal tax rates and other — (23.20 ) Effect of new tax law (2.09 ) (13.9 ) Effective tax rate 28.50 % 4.6 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Stock of Affiliates | Stock of Affiliates Biosynergy, Inc. F.K. Suzuki International, Inc. Medlab, Inc. F.K. Suzuki International, Inc. 30.0 % — % 100 % Fred K. Suzuki, Officer 4.1 30.0 — Jeanne S. Addis, as Trustee — 28.1 — Mary K. Friske, Officer 0.3 0.7 — Laurence C. Mead, Officer 0.4 10.0 — Beverly R. Suzuki 2.7 — — Lauane C. Addis, Officer — — — Malcolm MacCoun, Director — — — |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Notes to Financial Statements | |
Future Minimum Lease Payments | Year Ending April 30: 2020 90,200 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Notes to Financial Statements | ||
Raw Materials | $ 112,499 | $ 97,319 |
Work-in-process | 32,882 | 24,624 |
Finished goods | 17,297 | 19,102 |
[InventoryGross] | $ 162,678 | $ 141,045 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Liabilities (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Patents | $ 27,823 | $ 30,785 |
Prepaid and other | 5,951 | 7,296 |
[DeferredTaxLiabilities] | 33,774 | 38,081 |
Total deferred tax assets | ||
Accrued vacation pay | (5,865) | (6,632) |
Equipment and leaseholds | (3,495) | (4,223) |
Other | (142) | (1,786) |
[DeferredTaxAssetsNet] | (9,502) | (12,641) |
Net deferred income tax liabilities | $ 24,272 | $ 25,440 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal | $ 20,312 | $ 6,618 |
State | 10,154 | 4,342 |
[AccruedIncomeTaxes] | 30,466 | 10,960 |
Deferred | (1,168) | (9,360) |
Total Income Tax Expense | $ 29,298 | $ 1,600 |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Lease Expense (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Leases [Abstract] | |||
Future Minimum Lease Expense | $ 90,200 | $ 89,100 | $ 86,700 |
Major Customers (Details)
Major Customers (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Exports | $ 72,265 | $ 42,355 |
Customer One | ||
Accounts Receivable | $ 67,633 | $ 59,688 |
Sales | 28.40% | 28.30% |
Customer Two | ||
Accounts Receivable | $ 147,825 | $ 138,823 |
Sales | 40.10% | 38.10% |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory tax rate | 21.00% | 34.00% |
State income tax expense, net of federal tax benefit | 9.50% | 7.70% |
Effect of graduated federal tax rates and other | (23.20%) | |
Effect of New Tax Law | (2.00%) | (13.90%) |
Effective Tax Rate | 28.50% | 4.60% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Notes to Financial Statements | ||
Receivable from affiliate | $ 19,699 | $ 19,699 |
Legal Fees | $ 19,472 | $ 24,590 |
Lease Commitments (Details Narr
Lease Commitments (Details Narrative) - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Leases [Abstract] | |||
Rent Expense | $ 90,200 | $ 89,100 | $ 86,700 |
Employee Benefit Plan (Details
Employee Benefit Plan (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Notes to Financial Statements | ||
401(k) Contributions | $ 25,348 | $ 23,736 |