Cover Page
Cover Page - shares | 3 Months Ended | |
Aug. 31, 2019 | Sep. 30, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SCHMITT INDUSTRIES INC | |
Trading Symbol | SMIT | |
Entity Central Index Key | 0000922612 | |
Current Fiscal Year End Date | --05-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 4,086,406 | |
Title of 12(g) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Address, State or Province | OR |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Aug. 31, 2019 | May 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 1,592,847 | $ 1,411,732 |
Restricted cash | 54,895 | 55,703 |
Accounts receivable, net | 2,004,159 | 1,996,240 |
Inventories | 5,019,109 | 5,019,044 |
Prepaid expenses | 155,405 | 150,975 |
Total current assets | 8,826,415 | 8,633,694 |
Property and equipment, net | 817,478 | 839,374 |
Other assets | ||
Intangible assets, net | 366,039 | 392,185 |
Operating lease right-of-use assets | 102,767 | 0 |
TOTAL ASSETS | 10,112,699 | 9,865,253 |
Current liabilities | ||
Accounts payable | 505,496 | 496,362 |
Accrued commissions | 173,491 | 200,116 |
Accrued payroll liabilities | 171,768 | 239,476 |
Customer deposits and prepayments | 197,982 | 188,236 |
Other accrued liabilities | 127,635 | 218,268 |
Income taxes payable | 14,134 | 491 |
Current portion of long-term liabilities | 21,258 | 20,828 |
Current portion of operating lease liabilities | 32,721 | 0 |
Total current liabilities | 1,244,485 | 1,363,777 |
Long-term liabilities | 23,065 | 28,543 |
Long-term operating lease liabilities | 70,046 | 0 |
Total liabilities | 1,337,596 | 1,392,320 |
Stockholders' equity | ||
Common stock, no par value, 20,000,000 shares authorized, 4,032,878 shares issued and outstanding at August 31, 2019 and May 31, 2019 | 13,317,453 | 13,245,439 |
Accumulated other comprehensive loss | (467,479) | (527,827) |
Accumulated deficit | (4,074,871) | (4,244,679) |
Total stockholders' equity | 8,775,103 | 8,472,933 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,112,699 | $ 9,865,253 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2019 | May 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 4,032,878 | 4,032,878 |
Common stock, shares outstanding | 4,032,878 | 4,032,878 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenue | $ 3,341,885 | $ 3,440,453 |
Cost of revenue | 1,781,547 | 2,100,655 |
Gross profit | 1,560,338 | 1,339,798 |
Operating expenses: | ||
General, administration and sales | 1,279,007 | 1,405,363 |
Research and development | 12,167 | 48,237 |
Total operating expenses | 1,291,174 | 1,453,600 |
Operating income (loss) | 269,164 | (113,802) |
Other income (expense), net | (83,388) | (91,651) |
Income (loss) before income taxes | 185,776 | (205,453) |
Provision for income taxes | 15,968 | 6,366 |
Net income (loss) | $ 169,808 | $ (211,819) |
Net income (loss) per common share, basic | $ 0.04 | $ (0.05) |
Weighted average number of common shares, basic | 4,032,878 | 3,994,545 |
Net income (loss) per common share, diluted | $ 0.04 | $ (0.05) |
Weighted average number of common shares, diluted | 4,059,279 | 3,994,545 |
Comprehensive income (loss) | ||
Net income (loss) | $ 169,808 | $ (211,819) |
Foreign currency translation adjustment | 60,348 | 79,644 |
Total comprehensive income (loss) | $ 230,156 | $ (132,175) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows relating to operating activities | ||
Net income (loss) | $ 169,808 | $ (211,819) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 47,974 | 47,217 |
Gain on disposal of property and equipment | (12,000) | 0 |
Stock based compensation | 72,014 | 5,597 |
(Increase) decrease in: | ||
Accounts receivable | (22,782) | 164,312 |
Inventories | (11,863) | (434,075) |
Prepaid expenses | (5,106) | 28,447 |
Increase (decrease) in: | ||
Accounts payable | 11,575 | (14,346) |
Accrued liabilities and customer deposits | (171,702) | 11,722 |
Income taxes payable | 13,643 | 479 |
Net cash provided by (used in) operating activities | 91,561 | (402,466) |
Cash flows relating to investing activities | ||
Purchases of property and equipment | 0 | (5,250) |
Proceeds from the sale of property and equipment | 12,000 | 0 |
Net cash provided by (used in) investing activities | 12,000 | (5,250) |
Cash flows relating to financing activities | ||
Payments on long-term liabilities | (5,048) | 0 |
Net cash used in investing activities | (5,048) | 0 |
Effect of foreign exchange translation on cash | 81,794 | 97,009 |
Increase (decrease) in cash, cash equivalents and restricted cash | 180,307 | (310,707) |
Cash, cash equivalents and restricted cash, beginning of period | 1,467,435 | 2,111,533 |
Cash, cash equivalents and restricted cash, end of period | 1,647,742 | 1,800,826 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for income taxes | 2,325 | 5,887 |
Cash paid during the period for interest | $ 2,073 | $ 263 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance at May. 31, 2018 | $ 9,515,656 | $ 13,085,652 | $ (536,307) | $ (3,033,689) |
Beginning balance, shares at May. 31, 2018 | 3,994,545 | |||
Stock-based compensation | 5,597 | $ 5,597 | 0 | 0 |
Net income (loss) | (211,819) | 0 | 0 | (211,819) |
Other comprehensive loss | 79,644 | 0 | 79,644 | 0 |
Ending balance at Aug. 31, 2018 | 9,389,078 | $ 13,091,249 | (456,663) | (3,245,508) |
Ending balance, shares at Aug. 31, 2018 | 3,994,545 | |||
Beginning balance at May. 31, 2019 | $ 8,472,933 | $ 13,245,439 | (527,827) | (4,244,679) |
Beginning balance, shares at May. 31, 2019 | 4,032,878 | 4,032,878 | ||
Stock-based compensation | $ 72,014 | $ 72,014 | 0 | 0 |
Net income (loss) | 169,808 | 0 | 0 | 169,808 |
Other comprehensive loss | 60,348 | 0 | 60,348 | 0 |
Ending balance at Aug. 31, 2019 | $ 8,775,103 | $ 13,317,453 | $ (467,479) | $ (4,074,871) |
Ending balance, shares at Aug. 31, 2019 | 4,032,878 | 4,032,878 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation In the opinion of management, the accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly its financial position as of August 31, 2019 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2019 has been derived from the Annual Report on Form 10-K for the fiscal year ended May 31, 2019. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2019. Operating results for the interim periods presented are not necessarily indicative of the results that may be experienced for the fiscal year ending May 31, 2020. Principles of Consolidation These consolidated financial statements include those of the Company and its wholly owned subsidiaries: Schmitt Measurement Systems, Inc., Schmitt Europe, Ltd. and Schmitt Industries (Canada) Limited. All significant intercompany accounts and transactions have been eliminated in the preparation of the consolidated financial statements. Reclassification Certain amounts in the prior period consolidated balance sheet have been reclassified to conform to the presentation of the current period. These reclassifications had no effect on the statement of operations, comprehensive income (loss) or cash flows. Revenue Recognition The Company determines the amount of revenue it recognizes associated with the transfer of each product or service. For sales of products or delivery of monitoring services to all customers, each transaction is evaluated to determine whether there is approval and commitment from both the Company and the customer for the transaction; whether the rights of each party are specifically identified; whether the transaction has commercial substance; whether collectability from the customer is probable at the inception of the contract and whether the transaction amount is defined. If a transaction to sell products or provide monitoring services meets all of the above criteria, revenue is recognized for the sales of product at the time of shipment or for monitoring services at the completion of the month in which monitoring services are provided. The Company incurs commissions associated with the sales of products, which are accrued and expensed at the time the product is shipped. These amounts are recorded within general, administration and sales expense. The Company also incurs costs related to shipping and handling of its products, the costs of which are expensed as incurred as a component of cost of sales. Shipping and handling fees billed to customers, which are recognized at the time of shipment as a component of net revenues, were $37,228 and $49,240 for the three months ended August 31, 2019 and August 31, 2018, respectively. Cash, Cash Equivalents and Restricted Cash The Company generally invests its excess cash in money market funds. The Company’s investment policy also allows for cash to be invested in investment grade highly liquid securities, and the Company considers securities that are highly liquid, readily convertible into cash and have original maturities of less than three months when purchased to be cash equivalents. The Company’s cash consists of demand deposits in large financial institutions. At times, balances may exceed federally insured limits. Restricted cash consists of an amount received from a customer in December 2017 as part of an on-going The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of August 31, 2019 and May 31, 2019 to the sum of the same such amounts as shown in the Consolidated Statement of : August 31, 2019 May 31, 2019 Cash and cash equivalents $ 1,592,847 $ 1,411,732 Restricted cash 54,895 55,703 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,647,742 $ 1,467,435 Accounts Receivable The Company maintains credit limits for all customers based upon several factors, including but not limited to financial condition and stability, payment history, published credit reports and use of credit references. Management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value. This review includes using accounts receivable agings, other operating trends and relevant business conditions, including general economic factors, as they relate to each of the Company’s domestic and international customers. In the event there is doubt about whether a customer account is collectible, a reserve is provided. If these analyses lead management to the conclusion that a customer account is uncollectible, the balance will be directly charged to bad debt expense. The allowance for doubtful accounts was $48,960 and $43,388 as of August 31, 2019 and May 31, 2019, respectively. Inventories Inventories are valued at the lower of cost or net realizable value with cost determined on the average cost basis. Costs included in inventories consist of materials, labor and manufacturing overhead, which are related to the purchase or production of inventories. Write-downs, when required, are made to reduce excess inventories to their net realizable values. Such estimates are based on assumptions regarding future demand and market conditions. If actual conditions become less favorable than the assumptions used, an additional inventory write-down may be required. As of August 31, 2019 and May 31, 2019 inventories consisted of: August 31, 2019 May 31, 2019 Raw materials $ 2,259,759 $ 2,222,245 Work-in-process 1,193,955 1,020,683 Finished goods 1,565,395 1,776,116 $ 5,019,109 $ 5,019,044 Property and Equipment Property and equipment are stated at cost, less depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years August 31, 2019 May 31, 2019 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,398,613 1,403,755 Vehicles 0 44,704 3,512,137 3,561,983 Less accumulated depreciation (2,694,659 ) (2,722,609 ) $ 817,478 $ 839,374 Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for most leases previously classified as operating leases. Subsequent amendments have been issued by the FASB to clarify the codification and to correct unintended application of the new guidance. The ASU is required to be applied using a retrospective approach with two disclosure methods permissible. The full retrospective approach requires that the guidance be applied to each lease that existed at the beginning of the earliest comparative period presented. The modified retrospective approach requires that the guidance be applied to each lease that existed as of the beginning of the reporting period in which the entity first applied the standard. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements, which provides an option to apply the guidance prospectively, instead of retrospectively, and allows for other classification provisions. On June 1, 2019, the Company adopted the new standard on June 1, 2019 using the modified retrospective approach and electing the option to not apply the guidance to comparative periods, which continue to be presented under the accounting methods in effect for those periods. Long-Term Liabilities and Current Portion of Long-Term Liabilities Long-term liabilities consist of a financing arrangement executed for the purchase of certain property and equipment over a term of 36 months. Future minimum commitments under this agreement for the each of the years ending May 31 are as follows: Years ending May 31, 2020 $ 18,079 2021 24,105 2022 6,009 Total future minimum payments 48,193 Less: amount representing interest (3,870 ) Present value of minimum payments of long-term liabilities $ 44,323 Current portion of long-term liabilities 21,258 Long-term liabilities 23,065 $ 44,323 Use of Estimates The preparation of the consolidated 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 amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Stock Options And Stock-Based C
Stock Options And Stock-Based Compensation | 3 Months Ended |
Aug. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options And Stock-Based Compensation | NOTE 2: STOCK OPTIONS AND STOCK-BASED COMPENSATION Stock-based compensation includes expense charges for all stock-based awards to employees and directors granted under the Company’s stock option plan. Stock-based compensation recognized during the period is based on the portion of the grant date fair value of the stock-based award that will vest during the period, adjusted for expected forfeitures. Compensation cost for all stock-based awards is recognized using the straight-line method. The Company uses the Black-Scholes option pricing model as its method of valuation for stock-based awards. The Black-Scholes option pricing model requires the input of highly subjective assumptions, and other reasonable assumptions could provide differing results. These variables include, but are not limited to: • Risk-Free Interest Rate. • Expected Life. pre-vesting • Expected Volatility. • Expected Dividend Yield. • Expected Forfeitures. pre-vesting There were no options granted during the three months ended August 31, 2019. At August 31, 2019, the Company had a total of 236,666 outstanding stock options (236,666 vested and exercisable and 0 non-vested) Outstanding Options Exercisable Options Number of Weighted Average Weighted Average Number of Shares Weighted Average 124,166 $ 1.70 6.4 124,166 $ 1.70 15,000 2.53 2.8 15,000 2.53 62,500 2.85 3.4 62,500 2.85 35,000 3.65 0.7 35,000 3.65 236,666 $ 2.35 4.6 236,666 $ 2.35 0 0 Options granted, exercised, canceled and expired under the Company’s stock-based compensation plans during the three months ended August 31, 2019 are summarized as follows: Three Months Ended Number of Weighted Options outstanding - beginning of period 254,166 $ 2.41 Options granted 0 0.00 Options exercised 0 0.00 Options forfeited/canceled (17,500 ) 3.29 Options outstanding - end of period 236,666 $ 2.35 Restricted Stock Units Service-based and market-based restricted stock units are granted to key employees and members of the Company’s Board of Directors. Service-based restricted stock units generally fully vest on the first anniversary date of the award. Market-based restricted stock units are contingent on continued service and vest based on 15-day During the three months ended August 31, 2019, 30,528 . Restricted stock unit activity under the Company’s stock-based compensation plans during the three months ended August 31, 2019 is summarized as follows: Number of Weighted Aggregate Non-vested 98,000 $ 2.94 Restricted stock units granted 30,528 2.14 Restricted stock units vested (30,528 ) (2.14 ) Non-vested 98,000 $ 2.94 $ 105,840 During the three months ending August 31, 2019, total restricted stock unit compensation expense recognized was $72,014 and has been recorded as general, administration and sales expense in the Consolidated Statements of Operations and Comprehensive Loss. |
Weighted Average Shares and Rec
Weighted Average Shares and Reconciliation | 3 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares and Reconciliation | NOTE 3: WEIGHTED AVERAGE SHARES AND RECONCILIATION The following table is a reconciliation of the numerators and denominators of the basic and diluted per share computations for income (loss) from continuing operations for the three months ended August 31: Three Months Ended 2019 2018 Weighted average shares (basic) 4,032,878 3,994,545 Effect of dilutive stock options 26,401 0 Weighted average shares (diluted) 4,059,279 3,994,545 |
Income Taxes
Income Taxes | 3 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 4: INCOME TAXES The Company accounts for income taxes using the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management continues to review the level of the valuation allowance on a quarterly basis. There can be no assurance that the Company’s future operations will produce sufficient earnings to allow for the deferred tax asset to be fully utilized. The Company currently maintains a full valuation allowance against net deferred tax assets. Each year the Company files income tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the taxing authorities. Positions challenged by the taxing authorities may be settled or appealed by the Company. As a result, there is an uncertainty in income taxes recognized in the Company’s financial statements in accordance with ASC Topic 740. The Company applies this guidance by defining criteria that an individual income tax position must meet for any part of the benefit of that position to be recognized in an enterprise’s financial statements and provides guidance on measurement, de-recognition, Other long-term liabilities related to tax contingencies were $0 as of both August 31, 2019 and May 31, 2019. Interest and penalties associated with uncertain tax positions are recognized as components of the “Provision for income taxes.” The liability for payment of interest and penalties was $0 as of August 31, 2019 and May 31, 2019. Several tax years are subject to examination by major tax jurisdictions. In the United States, federal tax years ended May 31, 2016 2018 . Effective Tax Rate The effective tax rate for the three months ended August 31, 2019 was 8.6 . |
Segment Information
Segment Information | 3 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments Information | NOTE 5: SEGMENT INFORMATION The Company has two reportable business segments, Balancer and Measurement. Balancer focuses on dynamic balancing and process control systems for the machine tool industry and Measurement focuses on laser-based test and measurement systems and ultrasonic measurement products. The Company operates in three principal geographic markets: North America, Europe and Asia. Segment Information Three Months Ended August 31, 2019 2018 Balancer Measurement Balancer Measurement Net revenue $ 2,247,107 $ 1,094,778 $ 2,194,332 $ 1,246,121 Operating income (loss) $ 74,158 $ 195,006 $ (262,501 ) $ 148,699 Depreciation expense $ 12,894 $ 8,934 $ 12,072 $ 8,999 Amortization expense $ 0 $ 26,146 $ 0 $ 26,146 Capital expenditures $ 0 $ 0 $ 5,250 $ 0 Geographic Information Three Months Ended August 31, 2019 2018 North America $ 2,325,220 $ 2,200,201 Europe 428,551 373,463 Asia 548,151 824,776 Other markets 39,963 42,013 Total net revenue $ 3,341,885 $ 3,440,453 Three Months Ended August 31, 2019 2018 United States Europe United States Europe Operating income (loss) $ 162,895 $ 106,269 $ (131,190 ) $ 17,388 Depreciation expense $ 21,572 $ 256 $ 21,071 $ 0 Amortization expense $ 26,146 $ 0 $ 26,146 $ 0 Capital expenditures $ 0 $ 0 $ 5,250 $ 0 (1) “Europe” is defined in the above chart to include results from the European subsidiary, Schmitt Europe Ltd. (2) “United States” is defined to include remainder of the results not included in the results from the European subsidiary Segment and Geographic Assets August 31, 2019 May 31, 2019 Segment assets to total assets Balancer $ 6,003,195 $ 5,805,796 Measurement 2,461,762 2,592,022 Corporate assets 1,647,742 1,467,435 Total assets $ 10,112,699 $ 9,865,253 Geographic assets to long-lived assets United States $ 815,656 $ 837,228 Europe 1,822 2,146 Total long-lived assets $ 817,478 $ 839,374 Geographic assets to total assets United States $ 9,133,435 $ 8,578,770 Europe 979,264 1,286,483 Total assets $ 10,112,699 $ 9,865,253 (1) “Europe” is defined in the above chart to include assets held by the European subsidiary, Schmitt Europe Ltd. (2) “United States” is defined to include the remainder of the assets not held by the European subsidiary. |
Leases
Leases | 3 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 6: LEASES The Company leases certain of its facilities and equipment under operating leases, which are recorded as right-of-use assets and lease liabilities. The Company’s leases generally are month-to-month leases or have terms of 2 to 5 years. The Company currently does not have leases that include options to purchase or provisions that would automatically transfer ownership of the leased property to the Company. Operating lease expense is recognized on a straight-line basis over the lease term. The Company had no variable lease costs for the three months ended August 31, 2019. For the three months ended August 31, 2019, operating lease expense for the operating lease right-of-use assets was $9,984 and lease expense associated with short-term leases was $10,116. The Company determines whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and direct the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property or equipment. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses the rate implicit in the agreement. If the rate implicit in the agreement is not determinable, the Company’s incremental borrowing rate is used. At August 31, 2019, the weighted average remaining lease term for the operating leases was 3.0 years and the weighted average discount rate was 8.2%. The following table summarizes the maturity of the operating lease liabilities on an undiscounted cash flow basis and provides a reconciliation to the operating lease liabilities recognized on our consolidated balance sheet as of August 31, 2019: Years ending May 31, 2020 (excludes the three months ended August 31, 2019) $ 29,953 2021 35,591 2022 19,080 2023 19,080 2024 15,900 Thereafter 0 Total future minimum payments 119,604 Less: amount representing interest 16,837 Present value of minimum payments of operating lease liabilities $ 102,767 Current portion of operating lease liabilities 32,721 Long term operating lease liabilities 70,046 $ 102,767 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly its financial position as of August 31, 2019 and its results of operations and its cash flows for the periods presented. The consolidated balance sheet at May 31, 2019 has been derived from the Annual Report on Form 10-K for the fiscal year ended May 31, 2019. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2019. Operating results for the interim periods presented are not necessarily indicative of the results that may be experienced for the fiscal year ending May 31, 2020. |
Principles of Consolidation | Principles of Consolidation These consolidated financial statements include those of the Company and its wholly owned subsidiaries: Schmitt Measurement Systems, Inc., Schmitt Europe, Ltd. and Schmitt Industries (Canada) Limited. All significant intercompany accounts and transactions have been eliminated in the preparation of the consolidated financial statements. |
Reclassification | Reclassification Certain amounts in the prior period consolidated balance sheet have been reclassified to conform to the presentation of the current period. These reclassifications had no effect on the statement of operations, comprehensive income (loss) or cash flows. |
Revenue Recognition | Revenue Recognition The Company determines the amount of revenue it recognizes associated with the transfer of each product or service. For sales of products or delivery of monitoring services to all customers, each transaction is evaluated to determine whether there is approval and commitment from both the Company and the customer for the transaction; whether the rights of each party are specifically identified; whether the transaction has commercial substance; whether collectability from the customer is probable at the inception of the contract and whether the transaction amount is defined. If a transaction to sell products or provide monitoring services meets all of the above criteria, revenue is recognized for the sales of product at the time of shipment or for monitoring services at the completion of the month in which monitoring services are provided. The Company incurs commissions associated with the sales of products, which are accrued and expensed at the time the product is shipped. These amounts are recorded within general, administration and sales expense. The Company also incurs costs related to shipping and handling of its products, the costs of which are expensed as incurred as a component of cost of sales. Shipping and handling fees billed to customers, which are recognized at the time of shipment as a component of net revenues, were $37,228 and $49,240 for the three months ended August 31, 2019 and August 31, 2018, respectively. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company generally invests its excess cash in money market funds. The Company’s investment policy also allows for cash to be invested in investment grade highly liquid securities, and the Company considers securities that are highly liquid, readily convertible into cash and have original maturities of less than three months when purchased to be cash equivalents. The Company’s cash consists of demand deposits in large financial institutions. At times, balances may exceed federally insured limits. Restricted cash consists of an amount received from a customer in December 2017 as part of an on-going The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of August 31, 2019 and May 31, 2019 to the sum of the same such amounts as shown in the Consolidated Statement of : August 31, 2019 May 31, 2019 Cash and cash equivalents $ 1,592,847 $ 1,411,732 Restricted cash 54,895 55,703 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,647,742 $ 1,467,435 |
Accounts Receivable | Accounts Receivable The Company maintains credit limits for all customers based upon several factors, including but not limited to financial condition and stability, payment history, published credit reports and use of credit references. Management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value. This review includes using accounts receivable agings, other operating trends and relevant business conditions, including general economic factors, as they relate to each of the Company’s domestic and international customers. In the event there is doubt about whether a customer account is collectible, a reserve is provided. If these analyses lead management to the conclusion that a customer account is uncollectible, the balance will be directly charged to bad debt expense. The allowance for doubtful accounts was $48,960 and $43,388 as of August 31, 2019 and May 31, 2019, respectively. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value with cost determined on the average cost basis. Costs included in inventories consist of materials, labor and manufacturing overhead, which are related to the purchase or production of inventories. Write-downs, when required, are made to reduce excess inventories to their net realizable values. Such estimates are based on assumptions regarding future demand and market conditions. If actual conditions become less favorable than the assumptions used, an additional inventory write-down may be required. As of August 31, 2019 and May 31, 2019 inventories consisted of: August 31, 2019 May 31, 2019 Raw materials $ 2,259,759 $ 2,222,245 Work-in-process 1,193,955 1,020,683 Finished goods 1,565,395 1,776,116 $ 5,019,109 $ 5,019,044 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years August 31, 2019 May 31, 2019 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,398,613 1,403,755 Vehicles 0 44,704 3,512,137 3,561,983 Less accumulated depreciation (2,694,659 ) (2,722,609 ) $ 817,478 $ 839,374 |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for most leases previously classified as operating leases. Subsequent amendments have been issued by the FASB to clarify the codification and to correct unintended application of the new guidance. The ASU is required to be applied using a retrospective approach with two disclosure methods permissible. The full retrospective approach requires that the guidance be applied to each lease that existed at the beginning of the earliest comparative period presented. The modified retrospective approach requires that the guidance be applied to each lease that existed as of the beginning of the reporting period in which the entity first applied the standard. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements, which provides an option to apply the guidance prospectively, instead of retrospectively, and allows for other classification provisions. On June 1, 2019, the Company adopted the new standard on June 1, 2019 using the modified retrospective approach and electing the option to not apply the guidance to comparative periods, which continue to be presented under the accounting methods in effect for those periods. |
Long-term liabilities and current portion of long-term liabilities | Long-Term Liabilities and Current Portion of Long-Term Liabilities Long-term liabilities consist of a financing arrangement executed for the purchase of certain property and equipment over a term of 36 months. Future minimum commitments under this agreement for the each of the years ending May 31 are as follows: Years ending May 31, 2020 $ 18,079 2021 24,105 2022 6,009 Total future minimum payments 48,193 Less: amount representing interest (3,870 ) Present value of minimum payments of long-term liabilities $ 44,323 Current portion of long-term liabilities 21,258 Long-term liabilities 23,065 $ 44,323 |
Use of Estimates | Use of Estimates The preparation of the consolidated 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 amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the Consolidated Balance Sheets as of August 31, 2019 and May 31, 2019 to the sum of the same such amounts as shown in the Consolidated Statement of : August 31, 2019 May 31, 2019 Cash and cash equivalents $ 1,592,847 $ 1,411,732 Restricted cash 54,895 55,703 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows $ 1,647,742 $ 1,467,435 |
Inventories | As of August 31, 2019 and May 31, 2019 inventories consisted of: August 31, 2019 May 31, 2019 Raw materials $ 2,259,759 $ 2,222,245 Work-in-process 1,193,955 1,020,683 Finished goods 1,565,395 1,776,116 $ 5,019,109 $ 5,019,044 |
Summary of Property and Equipment | Expenditures for maintenance and repairs are charged to expense as incurred. As of August 31, 2019 and May 31, 2019, property and equipment consisted of: August 31, 2019 May 31, 2019 Land $ 299,000 $ 299,000 Buildings and improvements 1,814,524 1,814,524 Furniture, fixtures and equipment 1,398,613 1,403,755 Vehicles 0 44,704 3,512,137 3,561,983 Less accumulated depreciation (2,694,659 ) (2,722,609 ) $ 817,478 $ 839,374 |
Schedule of Maturities of Long-term Debt | Years ending May 31, 2020 $ 18,079 2021 24,105 2022 6,009 Total future minimum payments 48,193 Less: amount representing interest (3,870 ) Present value of minimum payments of long-term liabilities $ 44,323 Current portion of long-term liabilities 21,258 Long-term liabilities 23,065 $ 44,323 |
Stock Options And Stock-Based_2
Stock Options And Stock-Based Compensation (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Outstanding Stock Options | Outstanding Options Exercisable Options Number of Weighted Average Weighted Average Number of Shares Weighted Average 124,166 $ 1.70 6.4 124,166 $ 1.70 15,000 2.53 2.8 15,000 2.53 62,500 2.85 3.4 62,500 2.85 35,000 3.65 0.7 35,000 3.65 236,666 $ 2.35 4.6 236,666 $ 2.35 0 0 |
Schedule of Options Granted, Exercised, Canceled and Expired | Options granted, exercised, canceled and expired under the Company’s stock-based compensation plans during the three months ended August 31, 2019 are summarized as follows: Three Months Ended Number of Weighted Options outstanding - beginning of period 254,166 $ 2.41 Options granted 0 0.00 Options exercised 0 0.00 Options forfeited/canceled (17,500 ) 3.29 Options outstanding - end of period 236,666 $ 2.35 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | Restricted stock unit activity under the Company’s stock-based compensation plans during the three months ended August 31, 2019 is summarized as follows: Number of Weighted Aggregate Non-vested 98,000 $ 2.94 Restricted stock units granted 30,528 2.14 Restricted stock units vested (30,528 ) (2.14 ) Non-vested 98,000 $ 2.94 $ 105,840 |
Weighted Average Shares and R_2
Weighted Average Shares and Reconciliation (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table is a reconciliation of the numerators and denominators of the basic and diluted per share computations for income (loss) from continuing operations for the three months ended August 31: Three Months Ended 2019 2018 Weighted average shares (basic) 4,032,878 3,994,545 Effect of dilutive stock options 26,401 0 Weighted average shares (diluted) 4,059,279 3,994,545 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Three Months Ended August 31, 2019 2018 Balancer Measurement Balancer Measurement Net revenue $ 2,247,107 $ 1,094,778 $ 2,194,332 $ 1,246,121 Operating income (loss) $ 74,158 $ 195,006 $ (262,501 ) $ 148,699 Depreciation expense $ 12,894 $ 8,934 $ 12,072 $ 8,999 Amortization expense $ 0 $ 26,146 $ 0 $ 26,146 Capital expenditures $ 0 $ 0 $ 5,250 $ 0 |
Geographic Information | Geographic Information Three Months Ended August 31, 2019 2018 North America $ 2,325,220 $ 2,200,201 Europe 428,551 373,463 Asia 548,151 824,776 Other markets 39,963 42,013 Total net revenue $ 3,341,885 $ 3,440,453 |
Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas | Three Months Ended August 31, 2019 2018 United States Europe United States Europe Operating income (loss) $ 162,895 $ 106,269 $ (131,190 ) $ 17,388 Depreciation expense $ 21,572 $ 256 $ 21,071 $ 0 Amortization expense $ 26,146 $ 0 $ 26,146 $ 0 Capital expenditures $ 0 $ 0 $ 5,250 $ 0 (1) “Europe” is defined in the above chart to include results from the European subsidiary, Schmitt Europe Ltd. (2) “United States” is defined to include remainder of the results not included in the results from the European subsidiary |
Segment and Geographic Assets | Segment and Geographic Assets August 31, 2019 May 31, 2019 Segment assets to total assets Balancer $ 6,003,195 $ 5,805,796 Measurement 2,461,762 2,592,022 Corporate assets 1,647,742 1,467,435 Total assets $ 10,112,699 $ 9,865,253 Geographic assets to long-lived assets United States $ 815,656 $ 837,228 Europe 1,822 2,146 Total long-lived assets $ 817,478 $ 839,374 Geographic assets to total assets United States $ 9,133,435 $ 8,578,770 Europe 979,264 1,286,483 Total assets $ 10,112,699 $ 9,865,253 (1) “Europe” is defined in the above chart to include assets held by the European subsidiary, Schmitt Europe Ltd. (2) “United States” is defined to include the remainder of the assets not held by the European subsidiary. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
Schedule Of Maturity Of The Operating Lease Liabilities On An Undiscounted Cash Flow Basis | The following table summarizes the maturity of the operating lease liabilities on an undiscounted cash flow basis and provides a reconciliation to the operating lease liabilities recognized on our consolidated balance sheet as of August 31, 2019: Years ending May 31, 2020 (excludes the three months ended August 31, 2019) $ 29,953 2021 35,591 2022 19,080 2023 19,080 2024 15,900 Thereafter 0 Total future minimum payments 119,604 Less: amount representing interest 16,837 Present value of minimum payments of operating lease liabilities $ 102,767 Current portion of operating lease liabilities 32,721 Long term operating lease liabilities 70,046 $ 102,767 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,592,847 | $ 1,411,732 | ||
Restricted cash | 54,895 | 55,703 | ||
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statement of Cash Flows | $ 1,647,742 | $ 1,467,435 | $ 1,800,826 | $ 2,111,533 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2019 | |
Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts | $ 48,960 | $ 43,388 | |
Shipping and Handling [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenues | $ 37,228 | $ 49,240 | |
Vehicles [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Building and Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 25 years | ||
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 7 years |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies - Schedule of Inventories (Detail) - USD ($) | Aug. 31, 2019 | May 31, 2019 |
Inventory, Net [Abstract] | ||
Raw materials | $ 2,259,759 | $ 2,222,245 |
Work-in-process | 1,193,955 | 1,020,683 |
Finished goods | 1,565,395 | 1,776,116 |
Inventories | $ 5,019,109 | $ 5,019,044 |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($) | Aug. 31, 2019 | May 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,512,137 | $ 3,561,983 |
Less accumulated depreciation | (2,694,659) | (2,722,609) |
Property, plant and equipment, net | 817,478 | 839,374 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 299,000 | 299,000 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,814,524 | 1,814,524 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,398,613 | 1,403,755 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 0 | $ 44,704 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies - Schedule Of Maturities Of Long Term (Detail) - USD ($) | Aug. 31, 2019 | May 31, 2019 |
2020 | $ 18,079 | |
2021 | 24,105 | |
2022 | 6,009 | |
Total future minimum payments | 48,193 | |
Less: amount representing interest | (3,870) | |
Present value of minimum payments of long-term liabilities | 44,323 | |
Current portion of long-term liabilities | 21,258 | $ 20,828 |
Long-term liabilities | 23,065 | |
Long-term liabilities and current portion of long-term liabilities | $ 44,323 |
Stock Options And Stock-Based_3
Stock Options And Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Aug. 31, 2019 | May 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend rate | 0.00% | |
Outstanding stock options, total | 236,666 | 254,166 |
Vested and exercisable stock options | 0 | |
Non-vested shares | 0 | |
Weighted average exercise price | $ 2.35 | $ 2.41 |
Additional stock-based compensation expense | $ 0 | |
Number of Shares, Options granted | 0 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service-based restricted stock units, granted in period | 30,528 | |
Restricted Stock Units (RSUs) [Member] | Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | $ 72,014 | |
Performance Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Payment Award Vesting Rights | 15 days |
Stock Options And Stock-Based_4
Stock Options And Stock-Based Compensation - Schedule of Outstanding Stock Options (Detail) - $ / shares | 3 Months Ended | |
Aug. 31, 2019 | May 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding Options | 236,666 | 254,166 |
Weighted Average Exercise Price, Outstanding Options | $ 2.35 | $ 2.41 |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 4 years 7 months 6 days | |
Exercisable Options, Number of Shares | 0 | |
Exercisable Options, Weighted Average Exercise Price | $ 2.35 | |
Options 1 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding Options | 124,166 | |
Weighted Average Exercise Price, Outstanding Options | $ 1.70 | |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 6 years 4 months 24 days | |
Exercisable Options, Number of Shares | 124,166 | |
Exercisable Options, Weighted Average Exercise Price | $ 1.70 | |
Options 2 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding Options | 15,000 | |
Weighted Average Exercise Price, Outstanding Options | $ 2.53 | |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 2 years 9 months 18 days | |
Exercisable Options, Number of Shares | 15,000 | |
Exercisable Options, Weighted Average Exercise Price | $ 2.53 | |
Options 3 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding Options | 62,500 | |
Weighted Average Exercise Price, Outstanding Options | $ 2.85 | |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 3 years 4 months 24 days | |
Exercisable Options, Number of Shares | 62,500 | |
Exercisable Options, Weighted Average Exercise Price | $ 2.85 | |
Options 4 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding Options | 35,000 | |
Weighted Average Exercise Price, Outstanding Options | $ 3.65 | |
Weighted Average Remaining Contractual Life (yrs), Outstanding Options | 8 months 12 days | |
Exercisable Options, Number of Shares | 35,000 | |
Exercisable Options, Weighted Average Exercise Price | $ 3.65 |
Stock Options And Stock-Based_5
Stock Options And Stock-Based Compensation - Schedule of Options Granted, Exercised, Canceled and Expired (Detail) | 3 Months Ended |
Aug. 31, 2019$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Shares, Options outstanding - beginning of period | shares | 254,166 |
Number of Shares, Options granted | shares | 0 |
Number of Shares, Options exercised | shares | 0 |
Number of Shares, Options forfeited/cancelled | shares | (17,500) |
Number of Shares, Options outstanding - end of period | shares | 236,666 |
Weighted Average Exercise Price, Options outstanding - beginning of period | $ / shares | $ 2.41 |
Weighted Average Exercise Price, Options granted | $ / shares | 0 |
Weighted Average Exercise Price, Options exercised | $ / shares | 0 |
Weighted Average Exercise Price, Options forfeited/cancelled | $ / shares | 3.29 |
Weighted Average Exercise Price, Options outstanding - end of period | $ / shares | $ 2.35 |
Stock Options And Stock-Based_6
Stock Options And Stock-Based Compensation - Schedule Of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Aug. 31, 2019USD ($)Customer$ / sharesshares | |
Number of Shares, Non-vested | 98,000 |
Number of Shares, granted | 30,528 |
Number of Shares, vested | (30,528) |
Number of Shares, Non-vested | 98,000 |
Weighted Average Exercise Price, Non-vested | $ / shares | $ 2.94 |
Weighted Average Exercise Price, granted | $ / shares | $ 2.14 |
Weighted Average Exercise Price, vested | Customer | (2.14) |
Weighted Average Exercise Price, Non-vested | $ / shares | $ 2.94 |
Aggregate Intrinsic Value, Non-vested | $ | $ 105,840 |
Weighted Average Shares and R_3
Weighted Average Shares and Reconciliation - Reconciliation of Numerators and Denominators of Basic and Diluted Per Share Computations for Income (Loss) from Continuing Operations (Detail) - shares | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Weighted average shares (basic) | 4,032,878 | 3,994,545 |
Effect of dilutive stock options | 26,401 | 0 |
Weighted average shares (diluted) | 4,059,279 | 3,994,545 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2019 | May 31, 2020 | May 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Liability for payment of interest and penalties | $ 0 | $ 0 | |
Other long-term liabilities related to uncertain tax positions | $ 0 | $ 0 | |
Effective tax rate for Fiscal 2019 | 8.60% | ||
Forecast [Member] | |||
Income Tax Contingency [Line Items] | |||
Effective tax rate for Fiscal 2019 | 9.20% | ||
Domestic Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax examination period under examination | 2016 | ||
Foreign Tax Authority [Member] | United Kingdom [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax examination period under examination | 2018 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Aug. 31, 2019SegmentMarkets | |
Segment Reporting [Abstract] | |
Number of reportable business segments | Segment | 2 |
Number of geographic markets in which entity operates | Markets | 3 |
Segment Information - Segment I
Segment Information - Segment Information (Detail) - USD ($) | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 3,341,885 | $ 3,440,453 |
Operating income (loss) | 269,164 | (113,802) |
Capital expenditures | 0 | 5,250 |
Measurement [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 1,094,778 | 1,246,121 |
Operating income (loss) | 195,006 | 148,699 |
Depreciation expense | 8,934 | 8,999 |
Amortization expense | 26,146 | 26,146 |
Capital expenditures | 0 | 0 |
Balancer [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 2,247,107 | 2,194,332 |
Operating income (loss) | 74,158 | (262,501) |
Depreciation expense | 12,894 | 12,072 |
Amortization expense | 0 | 0 |
Capital expenditures | $ 0 | $ 5,250 |
Segment Information - Geographi
Segment Information - Geographic Information (Detail) - USD ($) | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | $ 3,341,885 | $ 3,440,453 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | 2,325,220 | 2,200,201 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | 428,551 | 373,463 |
Asia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | 548,151 | 824,776 |
Other markets [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenues | $ 39,963 | $ 42,013 |
Segment Information - Segment_2
Segment Information - Segment Information of Operating Income (Loss) and Expenditure by Geographic Areas (Detail) - USD ($) | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Operating income (loss) | $ 269,164 | $ (113,802) |
Capital expenditures | 0 | 5,250 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Operating income (loss) | 162,895 | (131,190) |
Depreciation expense | 21,572 | 21,071 |
Amortization expense | 26,146 | 26,146 |
Capital expenditures | 0 | 5,250 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Operating income (loss) | 106,269 | 17,388 |
Depreciation expense | 256 | 0 |
Amortization expense | 0 | 0 |
Capital expenditures | $ 0 | $ 0 |
Segments Information - Segment
Segments Information - Segment and Geographic Assets (Detail) - USD ($) | Aug. 31, 2019 | May 31, 2019 |
Segment Reporting Information [Line Items] | ||
Segment and geographic assets to total assets | $ 10,112,699 | $ 9,865,253 |
Geographic assets to long-lived assets | 817,478 | 839,374 |
Segment and geographic assets to total assets | 10,112,699 | 9,865,253 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment and geographic assets to total assets | 9,133,435 | 8,578,770 |
Geographic assets to long-lived assets | 815,656 | 837,228 |
Segment and geographic assets to total assets | 9,133,435 | 8,578,770 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment and geographic assets to total assets | 979,264 | 1,286,483 |
Geographic assets to long-lived assets | 1,822 | 2,146 |
Segment and geographic assets to total assets | 979,264 | 1,286,483 |
Operating Segments [Member] | Balancer [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment and geographic assets to total assets | 6,003,195 | 5,805,796 |
Segment and geographic assets to total assets | 6,003,195 | 5,805,796 |
Operating Segments [Member] | Measurement [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment and geographic assets to total assets | 2,461,762 | 2,592,022 |
Segment and geographic assets to total assets | 2,461,762 | 2,592,022 |
Corporate Assets [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment and geographic assets to total assets | 1,647,742 | 1,467,435 |
Segment and geographic assets to total assets | $ 1,647,742 | $ 1,467,435 |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Aug. 31, 2019USD ($) | |
Variable lease cost | $ 0 |
Operating lease expense | 9,984 |
Short-term lease cost | $ 10,116 |
Weighted average remaining lease term | 3 years |
Weighted average discount rate, percent | 8.20% |
Maximum [Member] | |
Operating lease term | 5 years |
Minimum [Member] | |
Operating lease term | 2 years |
Leases - Schedule Of Maturity O
Leases - Schedule Of Maturity Of The Operating Lease Liabilities On An Undiscounted Cash Flow Basis (Detail) - USD ($) | Aug. 31, 2019 | May 31, 2019 |
2020 (excludes the three months ended August 31, 2019) | $ 29,953 | |
2021 | 35,591 | |
2022 | 19,080 | |
2023 | 19,080 | |
2024 | 15,900 | |
Thereafter | 0 | |
Total future minimum payments | 119,604 | |
Less: amount representing interest | 16,837 | |
Present value of minimum payments of operating lease liabilities | 102,767 | |
Current portion of operating lease liabilities | 32,721 | $ 0 |
Long term operating lease liabilities | 70,046 | $ 0 |
Operating lease liability | $ 102,767 |
Stockholder Rights Agreement -
Stockholder Rights Agreement - Additional Information (Detail) | 1 Months Ended |
Jul. 01, 2019 | |
Condition Two [Member] | |
Stockholder Rights Agreement, Terms And Conditions, Description | if the Rights become exercisable, each Right would initially represent the right to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, no par value, of the Company (the "Series A Preferred Stock") for a purchase price of $11.25 (the "Purchase Price") |
Condition Five [Member] | |
Stockholder Rights Agreement, Terms And Conditions, Description | Each one one-thousandth of a share of Series A Preferred Stock, if issued: (i) will be junior to any other series of preferred stock the Company may issue (unless otherwise provided in the terms of such other series), (ii) will entitle holders to preferential cumulative quarterly dividends in an amount per share of Series A Preferred Stock equal to the greater of (a) $1 or (b) 1,000 times the aggregate the dividends, if any, declared on one share of the Company's Common Stock, (iii) will entitle holders upon liquidation (voluntary or otherwise) to receive $1,000 per share of Series A Preferred Stock plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, (iv) will have the same voting power as one share of Common Stock, and (v) will entitle holders to a per share payment equal to the payment made on one share of the Company's Common Stock, if shares of the Common Stock are exchanged via merger, consolidation, or a similar transaction. Because of the nature of the Series A Preferred Stock's dividend, liquidation and voting rights, the value of one one-thousandth of a share of Series A Preferred Stock purchasable upon exercise of each Right should approximate the value of one share of Common Stock. |