Document and Entity Information
Document and Entity Information | 6 Months Ended |
Oct. 31, 2020shares | |
Document And Entity Information | |
Entity Registrant Name | BIOSYNERGY INC |
Entity Central Index Key | 0000715812 |
Document Type | 10-Q |
Document Period End Date | Oct. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --04-30 |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 14,935,511 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2020 |
Entity Emerging Growth Company | false |
Entity Small Business | true |
Entity Interactive Data Current | Yes |
Entity Incorportation State Country Code | IL |
Entity File Number | 000-12459 |
EntityShellCompany | false |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Oct. 31, 2020 | Apr. 30, 2020 |
Current assets | ||
Cash | $ 1,260,141 | $ 1,245,282 |
Accounts receivable, trade (Net of allowance for doubtful accounts of $500 at October 31, 2020 and April 30, 2020) | 262,134 | 262,939 |
Inventories | 133,255 | 144,423 |
Prepaid expenses | 29,600 | 43,480 |
Total current assets | 1,685,130 | 1,696,124 |
Property, Plant and Equipment | ||
Equipment | 200,590 | 200,590 |
Leasehold improvements | 25,809 | 25,809 |
(Property Plant and Equipment Gross) | 226,399 | 226,399 |
Less accumulated depreciation and amortization | (221,104) | (218,872) |
Total property, plant and equipment, net | 5,295 | 7,527 |
Operating Lease Right of Use | 144,855 | 193,140 |
Total Operating Lease Right of Use Asset | 144,855 | 193,140 |
Other assets | ||
Patents less accumulated amortization | 98,237 | 105,058 |
Deposits | 5,937 | 5,937 |
Total other assets | 104,174 | 110,995 |
Total Assets | 1,939,454 | 2,007,786 |
Current Liabilities | ||
Accounts payable | 4,711 | 23,114 |
Accrued compensation and payroll taxes | 11,806 | 19,996 |
Accrued vacation | 18,912 | 28,089 |
Other accrued liabilities | 529 | 434 |
Operating lease liability | 96,570 | 95,160 |
Total current liabilities | 132,528 | 166,793 |
Long Term Liabilities | ||
Deferred Income Taxes | 19,812 | 19,812 |
Operating Lease Liability - Long Term | 48,990 | 97,980 |
Total Long Term Liabilities | 68,802 | 117,792 |
Shareholders equity | ||
Common stock, no par value: 20,000,000 authorized shares issued: 14,935,511 shares outstanding at October 31, 2020 and April 30, 2020 | 660,988 | 660,988 |
Receivable from Affiliate | (24,862) | (24,862) |
Retained earnings | 1,101,998 | 1,087,075 |
Total Shareholders Equity | 1,738,124 | 1,723,201 |
[LiabilitiesAndStockholdersEquity] | $ 1,939,454 | $ 2,007,786 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Oct. 31, 2020 | Apr. 30, 2020 |
Balance Sheets | ||
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 | 14,935,511 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Income Statement [Abstract] | ||||
Net Sales | $ 313,508 | $ 312,303 | $ 604,959 | $ 629,085 |
Cost of Sales | 109,935 | 108,553 | 221,818 | 215,727 |
Gross Profit | 203,573 | 203,750 | 383,141 | 413,358 |
Operating Expenses | ||||
Marketing | 39,069 | 43,766 | 84,155 | 91,568 |
General and administrative | 88,953 | 97,678 | 202,492 | 208,194 |
Research and development | 36,787 | 39,175 | 76,840 | 79,097 |
Total Operating Expenses | 164,809 | 180,619 | 363,487 | 378,859 |
Income (Loss) from Operations | 38,764 | 23,131 | 19,654 | 34,499 |
Other Income | ||||
Interest income | 115 | 150 | 257 | 300 |
Other income | 480 | 480 | 960 | 960 |
Total Other Income | 595 | 630 | 1,217 | 1,260 |
Net income (loss) before income taxes | 39,359 | 23,761 | 20,871 | 35,759 |
Provision (benefit) for income taxes | 11,217 | 6,771 | 5,948 | 10,191 |
Net Income (Loss) | $ 28,142 | $ 16,990 | $ 14,923 | $ 25,568 |
Net income (loss) per common share-basic and diluted | $ 0.0019 | $ 0.0011 | $ 0.0010 | $ 0.0017 |
Weighted-Average common stock outstanding-basic and diluted | 14,935,511 | 14,935,511 | 14,935,511 | 14,935,511 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 14,923 | $ 25,568 |
Adjustments to reconcile net (loss) to cash (usedin) provided by (used in) operating activities | ||
Depreciation and amortization | 9,053 | 9,659 |
Noncash Lease Expense | 48,285 | 44,550 |
Changes in assets and liabilities | ||
Accounts receivable | 805 | 4,173 |
Inventories | 11,168 | 5,719 |
Prepaid expenses | 13,880 | 17,822 |
Accounts payable and accrued expenses | (35,675) | (18,346) |
Building lease liability for right of use asset | (47,580) | (45,100) |
Total Adjustments | (64) | 18,477 |
Net cash (used in) provided by operating activities | 14,859 | 44,045 |
Increase in cash and cash equivalents | 14,859 | 44,045 |
Cash and Cash Equivalents Beginning Period | 1,245,282 | 1,180,125 |
Cash and Cash Equivalents Ending Period | 1,260,141 | 1,224,170 |
Supplemental Cash Flow Information | ||
Interest paid | ||
Income taxes paid |
Stockholders' Equity (Unaudited
Stockholders' Equity (Unaudited) - 6 months ended Oct. 31, 2020 - USD ($) | Common Stock | Receivable from Affiliate | Retained Earnings | Total |
Beginning Balance at Apr. 30, 2020 | $ 660,988 | $ (24,862) | $ 1,087,075 | $ 1,723,201 |
Common Stock Outstanding at Apr. 30, 2020 | 14,935,511 | 14,935,511 | 14,935,511 | |
Net Loss | $ 14,923 | $ 14,923 | ||
Ending Balance at Oct. 31, 2020 | $ 660,988 | $ (24,862) | $ 1,101,998 | $ 1,738,124 |
Company Organization and Descri
Company Organization and Description | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Company Organization and Description | In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, consisting of normal recurring adjustments which are necessary for a fair presentation of the financial position and results of operations for the periods presented. The unaudited condensed financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America. These condensed financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s April 30, 2020 Annual Report on Form 10-K. The results of operations for the six months ended October 31, 2020 are not necessarily indicative of the operating results for the full year. Biosynergy, Inc. (the Company) was incorporated under the laws of the State of Illinois on February 9, 1976. It 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 II Blood Monitoring Device, accounted for approximately 88.2% of the sales during the six months ending October 31, 2020 and 91.89% during the six months ending October 31, 2019. The products are sold to hospitals, clinical end-users, laboratories and product dealers located throughout the United States. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Summary of Significant Accounting Policies | Cash The Company maintains all of its cash in various bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts. Receivables Receivables are carried at original invoice less estimates made for doubtful receivables. Management determines the allowances for doubtful accounts by reviewing and identifying troubled accounts on a periodic basis and 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 at the lower of cost or market using the FIFO (first-in, first-out) method. Depreciation Equipment and leasehold improvements are stated at cost. Depreciation is computed 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 the term of the lease; equipment is depreciated over three to ten years. Depreciation expense was $2,232 and $2,837 for the six month periods ending October 31, 2020 and 2019, respectively. Prepaid Expenses Certain expenses, primarily insurance and income taxes, have been prepaid and will be used within one year. Revenue Recognition The Company accounts for revenue in accordance with ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". The core principle of ASU 2014-09 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. The guidance provides a five-step process to achieve that core principle and to determine when and how revenue is recognized. The components as it relates to the Company are 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 believes its performance obligations are satisfied upon shipment of goods to customers. The customers are billed at shipment, and revenue is recognized by the Company at that time. • 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). 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. 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. 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. The provision for income taxes consists of the following components for the six month periods ended October 31: 2020 2019 Current Federal $ 3,965 $ 6,794 State 1,983 3,397 Provision (Benefit) for Income Taxes $ 5,948 $ 10,191 The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate are as follows: Period ended October 31, 2020 2019 U.S. federal statutory tax rate 21.0 % 21.0 % State income tax expense, net of Federal tax benefit 7.5 ______ 7.5 ______ Effective Tax Rate 28.5 % 28.5 % 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 on the straight-line method. Patent amortization expense for each of the six months ended October 31, 2020 and 2019 were $6,822. 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 six months ended October 31, 2020 and 2019 as there are no common stock equivalents. Comprehensive Income Components of comprehensive income include amounts that are included in the comprehensive income but are excluded from net income. During the six month periods ending October 31, 2020 and 2019, there were no differences between the Company’s net income and comprehensive income. 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 balances sheets as of October 31, 2020 and April 30, 2020, 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. See Note 7. 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. Those 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 | 6 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Components of inventories are as follows: October 31, 2020 April 30, 2020 Raw materials $ 99,137 $ 106,284 Work-in-process 24,238 26,919 Finished goods 9,880 11,220 $ 133,255 $ 144,423 |
Common Stock
Common Stock | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Common Stock | The Company’s common stock is traded in the over-the-counter market. However, there is no established public trading market due to limited and sporadic trades. The Company’s common stock is not listed on a recognized market or stock exchange. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Oct. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The Company and its affiliates are related through common stock ownership as follows as of October 31, 2020: Stock of Affiliates Biosynergy, Inc. F.K. Suzuki International, Inc. Medlab, Inc. F.K. Suzuki International, Inc 30.0 % — % 100.0 % Fred K. Suzuki, Officer 4.1 30.0 — Jeanne S. Addis, Trustee — 28.1 — Mary K. Friske, Officer 0.3 0.7 — Laurence C. Mead, Officer 0.4 10.0 — Beverly K. Suzuki 2.7 — — Lauane C. Addis, Officer — — — Malcolm MacCoun, Director — — — As of October 31, 2020 and April 30, 2020, $24,862 was due from F. K. Suzuki International, Inc. These balances result from an allocation of common expenses charged to FKSI prior to April 30, 2006 offset by advances received from time to time, including an advance of $5,163 in Fiscal 2020 for corporate compliance costs. No interest income is received or accrued by the Company. The financial condition of FKSI is such that it will unlikely be able to repay the Company during the next year without liquidating a portion of its assets, including a portion of its ownership in the Company. As a result, the receivable balance has been reclassified as a contra equity account. A board member provided a variety of legal services to the Company in his capacity as a partner in a law firm. Fees for such legal services were approximately $6,002 and $7,585 for the six months ended October 31, 2020 and 2019 respectively. |
Lease Commitments
Lease Commitments | 6 Months Ended |
Oct. 31, 2020 | |
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. At inception, a lessee must classify all leases as either finance or operating. In February 2020, the Company entered into a two-year lease agreement for its current facilities, which started May 1, 2020 and expires on April 30, 2022. Under the new lease standard, 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. The operating lease expense for the six months ending October 31, 2020 and 2019 was $48,285 and $44,550, respectively. Maturities of lease liabilities as of October 31, 2020 are presented in the following table: Year Ending April 30: 2021 $48,285 2022 $96,570 |
Customer Concentration
Customer Concentration | 6 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Customer Concentration | Shipments to one customer amounted to 32.04% of sales during the first six months of Fiscal 2021 compared to 26.95% during the comparative Fiscal 2020 period. As of October 31, 2020, there were outstanding accounts receivable from this customer of $82,190 compared to $73,825 at October 31, 2019. Shipments to another customer amounted to 36.57% of sales during the first six months of Fiscal 2021 and 37.10% of sales during the first six months of Fiscal 2020. As of October 31, 2020, there were outstanding accounts receivable from this customer of $136,555 compared to $134,288 at October 31, 2019. The Company had export sales of $9,930 during the 2 nd nd |
COVID-19 Pandemic
COVID-19 Pandemic | 6 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Covid-19 Pandemic | The Company will face challenges in 2020 and 2021 as a result of the COVID-19 pandemic. Such challenges will include (among other things) decreases or significant decreases in demand for certain products that has resulted in a decrease in sales for the six months ending October 31, 2020, and increases in demand for others, collectability of customer accounts receivable from customers negatively impacted by shelter in place requirements, managing the health and productivity of our employees working in our facility or working remotely, managing our information technology (IT) infrastructure and security for our employees working remotely, and procuring adequate raw materials and packaging, as well as managing our supply chain. We have also worked closely with our domestic suppliers to source and maintain a consistent supply of raw material, ingredients and packaging to provide a steady supply of our products to our customers. We are fortunate that to date our manufacturing facility has not been significantly impacted by this pandemic. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Cash | The Company maintains all of its cash in various bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts. |
Receivables | Receivables are carried at original invoice less estimates made for doubtful receivables. Management determines the allowances for doubtful accounts by reviewing and identifying troubled accounts on a periodic basis and 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 at the lower of cost or market using the FIFO (first-in, first-out) method. |
Depreciation | Equipment and leasehold improvements are stated at cost. Depreciation is computed 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 the term of the lease; equipment is depreciated over three to ten years. Depreciation expense was $2,232 and $2,837 for the six month periods ending October 31, 2020 and 2019, respectively. |
Prepaid Expenses | Certain expenses, primarily insurance and income taxes, have been prepaid and will be used within one year. |
Revenue Recognition | The Company accounts for revenue in accordance with ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". The core principle of ASU 2014-09 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. The guidance provides a five-step process to achieve that core principle and to determine when and how revenue is recognized. The components as it relates to the Company are 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 believes its performance obligations are satisfied upon shipment of goods to customers. The customers are billed at shipment, and revenue is recognized by the Company at that time. • 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). 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. |
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. 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. The provision for income taxes consists of the following components for the six month periods ended October 31: 2020 2019 Current Federal $ 3,965 $ 6,794 State 1,983 3,397 Provision (Benefit) for Income Taxes $ 5,948 $ 10,191 The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate are as follows: Period ended October 31, 2020 2019 U.S. federal statutory tax rate 21.0 % 21.0 % State income tax expense, net of 7.5 ________ 7.5 ________ Effective Tax Rate 28.5 % 28.5 % |
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 on the straight-line method. Patent amortization expense for each of the six months ended October 31, 2020 and 2019 were $6,822. 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 Comon 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 six months ended October 31, 2020 and 2019 as there are no common stock equivalents. |
Comprehensive Income | Components of comprehensive income include amounts that are included in the comprehensive income but are excluded from net income. During the six month periods ending October 31, 2020 and 2019, there were no differences between the Company’s net income and comprehensive income. |
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 balances sheets as of October 31, 2020 and April 30, 2020, 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. See Note 7. |
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. Those 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. |
COVID-19 Pandemic | The Company will face challenges in 2020 and 2021 as a result of the COVID-19 pandemic. Such challenges will include (among other things) decreases or significant decreases in demand for certain products that has resulted in a decrease in sales for the quarter ending October 31, 2020, and increases in demand for others, collectability of customer accounts receivable from customers negatively impacted by shelter in place requirements, managing the health and productivity of our employees working in our facility or working remotely, managing our information technology (IT) infrastructure and security for our employees working remotely, and procuring adequate raw materials and packaging, as well as managing our supply chain. We have also worked closely with our domestic suppliers to source and maintain a consistent supply of raw material, ingredients and packaging to provide a steady supply of our products to our customers. We are fortunate that to date our manufacturing facility has not been significantly impacted by this pandemic. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Provision (benefit) for Income Taxes | 2020 2019 Current Federal $ 3,965 $ 6,794 State 1,983 3,397 Provision for Income Taxes $ 5,948 $ 10,191 |
Income Tax Rate | Period ended October 31, 2020 2019 U.S. federal statutory tax rate 21.0 % 21.0 % State income tax expense, net of 7.5 ________ 7.5 _______ Effective Tax Rate 28.5 % 28.5 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | October 31, 2020 April 30, 2020 Raw materials $ 99,137 $ 106,284 Work-in-process 24,238 26,919 Finished goods 9,880 11,220 $ 133,255 $ 144,423 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Related Party Transactions [Abstract] | |
Stock of Affiliates | Stock of Affiliates Biosynergy, Inc. F.K. Suzuki International, Inc. Medlab, Inc. F.K. Suzuki International, Inc 30.0 % — % 100.0 % Fred K. Suzuki, Officer 4.1 30.0 — Lauane C. Addis, Officer — — — Jeanne S. Addis, Trustee — 28.1 — Mary K. Friske, Officer 0.3 0.7 — Laurence C. Mead, Officer 0.4 10.0 — Beverly R. Suzuki 2.7 — — Malcolm MacCoun, Director — — — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Provision for Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Current | ||||
Federal | $ 3,965 | $ 6,794 | ||
State | 1,983 | 3,397 | ||
(Provision) benefit for Income Taxes | $ 11,217 | $ 6,771 | $ 5,948 | $ 10,191 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Income Tax Rate (Details) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Notes to Financial Statements | ||
U.S. federal statutory tax rate | 21.00% | 21.00% |
State income tax expense, net of Federal tax benefit | 7.50% | 7.50% |
Adjustment for prior year estimates | 0.00% | 0.00% |
Effect of graduated federal tax rates | 0.00% | 0.00% |
Effective Tax Rate | 28.50% | 28.50% |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) | Oct. 31, 2020 | Apr. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 99,137 | $ 106,284 |
Work-in-process | 24,238 | 26,919 |
Finished goods | 9,880 | 11,220 |
[us-gaap:InventoryGross] | $ 133,255 | $ 144,423 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patent amortization expense | $ 6,822 | $ 6,822 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |||
Due from affiliate | $ 24,862 | $ 24,862 | |
Legal Fees | $ 6,002 | $ 7,585 |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Lease Expense (Details Narrative) - USD ($) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Leases [Abstract] | ||
Future Minimum Lease Expense | $ 48,285 | $ 44,550 |
Customer Concentrations (Detail
Customer Concentrations (Details Narrative) - USD ($) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Exports | $ 21,570 | $ 22,605 |
Customer One | ||
Accounts Receivable | $ 82,190 | $ 73,825 |
Sales | 3204.00% | 2695.00% |
Customer Two | ||
Accounts Receivable | $ 136,555 | $ 134,288 |
Sales | 3657.00% | 3710.00% |