Taylor Devices (TAYD) 10-Q30 Sep 222023 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Aug. 31, 2022	Sep. 30, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Aug. 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--05-31
Entity File Number	0-3498
Entity Registrant Name	TAYLOR DEVICES INC
Entity Central Index Key	0000096536
Entity Tax Identification Number	16-0797789
Entity Incorporation, State or Country Code	NY
Entity Address, Address Line One	90 Taylor Drive
Entity Address, City or Town	North Tonawanda
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14120
City Area Code	716
Local Phone Number	694-0800
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,502,292

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Aug. 31, 2022	May 31, 2022	Aug. 31, 2021
Current assets:
Cash and cash equivalents	$ 21,686,839	$ 22,517,038	$ 20,146,836
Short-term investments	1,097,450	1,097,450
Accounts and other receivables, net	5,832,298	4,466,686
Inventory	5,903,319	5,854,935
Costs and estimated earnings in excess of billings	2,832,538	3,336,474
Other current assets	418,553	704,436
Total current assets	37,770,997	37,977,019
Maintenance and other inventory, net	1,001,056	1,107,309
Property and equipment, net	10,370,433	9,854,759
Other assets	206,499	205,359
Deferred income taxes	74,615	74,615
Total assets	49,423,600	49,219,061
Current liabilities:
Accounts payable	1,448,944	1,426,830
Billings in excess of costs and estimated earnings	1,614,097	1,122,763
Other current liabilities	2,067,743	3,414,314
Total current liabilities	5,130,784	5,963,907
Stockholders' Equity:
Common stock and additional paid-in capital	10,364,549	10,329,258
Retained earnings	36,843,269	35,840,898
Stockholders’ equity before treasury stock	47,207,818	46,170,156
Treasury stock - at cost	(2,915,002)	(2,915,002)	(2,915,002)
Total stockholders’ equity	44,292,816	43,255,154	$ 40,983,918
Total liabilities and stockholders’ equity	$ 49,423,600	$ 49,219,061

Condensed Consolidated Sattemen

Condensed Consolidated Sattements of Income - USD ($)	3 Months Ended
Condensed Consolidated Sattements of Income - USD ($)	Aug. 31, 2022	Aug. 31, 2021
Income Statement [Abstract]
Sales, net	$ 9,090,699	$ 7,307,737
Cost of goods sold	5,705,942	5,435,558
Gross profit	3,384,757	1,872,179
Research and development costs	375,346	281,940
Selling, general and administrative expenses	1,831,038	1,472,099
Operating income	1,178,373	118,140
Other income, net	39,998	63,737
Income before provision for income taxes	1,218,371	181,877
Provision for income taxes	216,000
Net income	$ 1,002,371	$ 181,877
Basic and diluted earnings per common share	$ 0.29	$ 0.05

Condensed Consolidated Statemen

Condensed Consolidated Statements of Stockholders Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]
Stockholders' Equity Attributable to Parent	$ 101,305	$ 10,010,430	$ 33,601,475
Stockholders' Equity Attributable to Parent, Beginning Balance at May. 31, 2021	101,305	10,010,430	33,601,475
Stock Issued During Period, Value, Employee Stock Purchase Plan	8	3,825
Stock Issued During Period, Value, Employee Benefit Plan	0
Net Income (Loss) Attributable to Parent			181,877
Stockholders' Equity Attributable to Parent, Ending Balance at Aug. 31, 2021	101,313	10,014,255	33,783,352
Stockholders' Equity Attributable to Parent, Beginning Balance at May. 31, 2021	101,305	10,010,430	33,601,475
Stock Issued During Period, Value, Employee Benefit Plan		0
Stockholders' Equity Attributable to Parent, Ending Balance at Aug. 31, 2022	101,451	10,263,098	36,843,269
Stockholders' Equity Attributable to Parent	101,313	10,014,255	33,783,352
Stockholders' Equity Attributable to Parent	101,342	10,227,916	35,840,898
Stockholders' Equity Attributable to Parent, Beginning Balance at May. 31, 2022	101,342	10,227,916	35,840,898
Stock Issued During Period, Value, Employee Stock Purchase Plan	9	3,062
Stock Issued During Period, Value, Employee Benefit Plan	100	32,120
Net Income (Loss) Attributable to Parent			1,002,371
Stockholders' Equity Attributable to Parent, Ending Balance at Aug. 31, 2022	101,451	10,263,098	36,843,269
Stockholders' Equity Attributable to Parent	$ 101,451	$ 10,263,098	$ 36,843,269

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
Condensed Consolidated Statements of Cash Flows - USD ($)	Aug. 31, 2022	Aug. 31, 2021
Operating activities:
Net income	$ 1,002,371	$ 181,877
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation	317,790	313,785
Changes in other assets and liabilities:
Accounts and other receivables	(1,365,612)	1,364,269
Inventory	57,869	387,855
Costs and estimated earnings in excess of billings	503,936	(1,787,856)
Other current assets	285,883	64,164
Accounts payable	22,114	158,458
Billings in excess of costs and estimated earnings	491,334	(394,560)
Other current liabilities	(1,346,571)	(258,792)
Net operating activities	(30,886)	29,200
Investing activities:
Acquisition of property and equipment	(833,464)	(461,953)
Other investing activities	(1,140)	(5,848)
Net investing activities	(834,604)	(467,801)
Financing activities:
Proceeds from issuance of common stock, net	35,291	3,833
Net change in cash and cash equivalents	(830,199)	(434,768)
Cash and cash equivalents – beginning	22,517,038	20,581,604
Cash and cash equivalents – ending	$ 21,686,839	$ 20,146,836

Notes to Condensed Consolidated

Notes to Condensed Consolidated Financial Statements	3 Months Ended
Notes to Condensed Consolidated Financial Statements	Aug. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Notes to Condensed Consolidated Financial Statements	1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of August 31, 2022 and May 31, 2022, the results of operations for the three months ended August 31, 2022 and 2021, and cash flows for the three months ended August 31, 2022 and 2021. These financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Annual Report to Shareholders for the year ended May 31, 2022. 2. The Company has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. 3. There is no provision nor shall there be any provisions for profit sharing, dividends, or any other benefits of any nature at any time for this fiscal year. 4. For the three-month period ended August 31, 2022 and 2021, the net income was divided by 3,499,023 3,496,522 5. The results of operations for the three-month period ended August 31, 2022 are not necessarily indicative of the results to be expected for the full year. 6. Recently issued Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) guidance has either been implemented or is not significant to the Company. 7. Inventory: August 31, 2022 May 31, 2022 Raw materials $ 601,126 $ 488,393 Work-in-process 5,137,526 5,166,271 Finished goods 264,667 300,271 Gross inventory 6,003,319 5,954,935 Less allowance for obsolescence 100,000 100,000 Net inventory $ 5,903,319 $ 5,854,935 8. Revenue Recognition: Revenue is recognized (generally at fixed prices) when, or as, the Company transfers control of promised products or services to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts which are, therefore, not distinct. Promised goods or services that are immaterial in the context of the contract are not separately assessed as performance obligations. For contracts with customers in which the Company satisfies a promise to the customer to provide a product that has no alternative use to the Company and the Company has enforceable rights to payment for progress completed to date inclusive of profit, the Company satisfies the performance obligation and recognizes revenue over time (generally less than one year) using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material and overhead. Adjustments to cost estimates are made periodically, and losses expected to be incurred on contracts in progress are charged to operations in the period such losses are determined. Other sales to customers are recognized upon shipment to the customer based on contract prices and terms. In the three months ended August 31, 2022, 61% of revenue was recorded for contracts in which revenue was recognized over time while 39% was recognized at a point in time. In the three months ended August 31, 2021, 66% of revenue was recorded for contracts in which revenue was recognized over time while 34% was recognized at a point in time. Progress payments are typically negotiated for longer term projects. Payments are otherwise due once performance obligations are complete (generally at shipment and transfer of title). For financial statement presentation purposes, the Company nets progress billings against the total costs incurred on uncompleted contracts. The asset, “costs and estimated earnings in excess of billings,” represents revenues recognized in excess of amounts billed. The liability, “billings in excess of costs and estimated earnings,” represents billings in excess of revenues recognized. If applicable, the Company recognizes an asset for the incremental, material costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year and the costs are expected to be recovered. As of August 31, 2022 and May 31, 2022, the Company does not have material incremental costs on any open contracts with an original expected duration of greater than one year, and therefore such costs are expensed as incurred. These incremental costs include, but are not limited to, sales commissions incurred to obtain a contract with a customer. 9. The August 31, 2021 statement of income has been reclassified to conform with the presentation adopted for August 31, 2022.

Notes to Condensed Consolidat_2

Notes to Condensed Consolidated Financial Statements (Tables)	3 Months Ended
	Aug. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventory	August 31, 2022 May 31, 2022 Raw materials $ 601,126 $ 488,393 Work-in-process 5,137,526 5,166,271 Finished goods 264,667 300,271 Gross inventory 6,003,319 5,954,935 Less allowance for obsolescence 100,000 100,000 Net inventory $ 5,903,319 $ 5,854,935

Inventory (Details)

Inventory (Details) - USD ($)	Aug. 31, 2022	May 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 601,126	$ 488,393
Work-in-process	5,137,526	5,166,271
Finished goods	264,667	300,271
Gross inventory	6,003,319	5,954,935
Less allowance for obsolescence	100,000	100,000
Net inventory	$ 5,903,319	$ 5,854,935

Notes to Condensed Consolidat_3

Notes to Condensed Consolidated Financial Statements (Details Narrative) - shares	3 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Weighted Average Number of Shares Outstanding, Basic	3,499,023	3,496,522