Technical Communications (TCCO) 10-Q9 May 232023 Q2 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 25, 2023	May 09, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 25, 2023
Document Transition Report	false
Entity File Number	001-34816
Entity Registrant Name	TECHNICAL COMMUNICATIONS CORPORATION
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2295040
Entity Address, Address Line One	100 Domino Drive
Entity Address, City or Town	Concord
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01742-2892
City Area Code	978
Local Phone Number	287-5100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		1,854,403
Entity Central Index Key	0000096699
Current Fiscal Year End Date	--09-24
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 25, 2023	Sep. 24, 2022
Current Assets:
Cash and cash equivalents	$ 198,269	$ 6,727
Accounts receivable - trade	10,107	15,174
Government grant receivable - Employee retention credit	135,524	515,966
Inventories, net	973,155	966,185
Other current assets	168,321	186,963
Total current assets	1,485,376	1,691,015
Equipment and leasehold improvements	4,556,144	4,556,144
Less: accumulated depreciation and amortization	(4,547,316)	(4,544,778)
Equipment and leasehold improvements, net	8,828	11,366
Operating lease right-of-use asset	167,187	248,462
Total Assets	1,661,391	1,950,843
Current Liabilities:
Current operating lease liabilities	167,188	164,086
Accounts payable	324,325	159,388
Customer deposits	14,479	3,933
Accrued compensation and related expenses	142,013	204,412
Accrued interest	246,672	118,208
Other current liabilities	3,907	1,419
Total current liabilities	1,661,774	3,653,442
Long-term operating lease liability	0	84,376
Total Liabilities	5,048,584	3,885,822
Stockholders’ Equity (Deficit):
Common stock, par value $0.10 per share; 7,000,000 shares authorized; 1,854,403 shares issued and outstanding at March 25, 2023 and September 24, 2022	185,440	185,440
Additional paid-in capital	4,390,100	4,364,687
Accumulated deficit	7,962,733	6,485,106
Total stockholders’ equity (deficit)	(3,387,193)	(1,934,979)
Total Liabilities and Stockholders’ Equity (Deficit)	1,661,391	1,950,843
Nonrelated Party [Member]
Current Liabilities:
Current maturities of notes payable – long-term	3,023	1,996
Related party note payable – long-term, net of current maturities	146,977	148,004
Related Party [Member]
Current Liabilities:
Current maturities of related party notes payable	760,167	3,000,000
Related party note payable – long-term, net of current maturities	$ 3,239,833	$ 0

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 25, 2023	Mar. 23, 2023	Sep. 24, 2022
Common Stock, Par or Stated Value Per Share (in dollars per share)		$ 0.10	$ 0.10
Common Stock, Shares Authorized (in shares)		7,000,000	7,000,000
Common Stock, Shares, Outstanding (in shares)		1,854,403	1,854,403
Common Stock, Shares, Issued (in shares)	1,854,403		1,854,403

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
Consolidated Statements of Operations (Unaudited) - USD ($)	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022
Net revenue	$ 27,784	$ 565,112	$ 149,321	$ 988,593
Cost of revenue	113,263	490,424	261,381	847,252
Gross (loss) profit	(85,479)	74,688	(112,060)	141,341
Operating expenses:
Selling, general and administrative	322,121	484,649	805,656	1,047,009
Product development	162,605	83,789	439,788	184,888
Total operating expenses	484,726	568,438	1,245,444	1,231,897
Operating loss	(570,205)	(493,750)	(1,357,504)	(1,090,556)
Other income (expense):
Interest income	11,216	0	11,216	0
Interest expense	70,038	28,533	131,339	45,088
Total other income (expense)	(58,822)	(28,533)	(120,123)	(45,088)
Net loss	$ (629,027)	$ (522,283)	$ (1,477,627)	$ (1,135,644)
Net loss per common share:
Basic (in dollars per share)	$ (0.34)	$ (0.28)	$ (0.80)	$ (0.61)
Diluted (in dollars per share)	$ (0.34)	$ (0.28)	$ (0.80)	$ (0.61)
Weighted average shares:
Basic (in shares)	1,854,403	1,854,403	1,854,403	1,854,403
Diluted (in shares)	1,854,403	1,854,403	1,854,403	1,854,403
Net revenue	$ 27,784	$ 565,112	$ 149,321	$ 988,593
Cost of revenue	113,263	490,424	261,381	847,252
Gross (loss) profit	$ (85,479)	$ 74,688	$ (112,060)	$ 141,341

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Consolidated Statements of Cash Flows (Unaudited) - USD ($)	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022	Sep. 24, 2022	Sep. 25, 2021
Operating Activities:
Net loss	$ (629,027)	$ (522,283)	$ (1,477,627)	$ (1,135,644)	$ (2,331,000)	$ (1,088,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			2,538	2,642
Stock-based compensation			25,413	24,801
Changes in certain operating assets and liabilities:
Accounts receivable			5,067	(114,018)
Government grant receivable			380,442	0
Inventories			(6,970)	78,449
Other current assets			18,642	(10,340)
Customer deposits			10,546	(41,191)
Accounts payable and other accrued liabilities			233,491	23,340
Net cash used in operating activities			808,458	1,171,961
Financing Activities:
Proceeds from related party notes payable			1,000,000	900,000
Net cash provided by financing activities			1,000,000	900,000
Net change in cash and cash equivalents			191,542	(271,961)
Cash and cash equivalents at beginning of the period			6,727	298,022	298,022
Cash and cash equivalents at end of the period	$ 198,269	$ 26,061	198,269	26,061	$ 6,727	$ 298,022
Supplemental Disclosures:
Income taxes paid			0	912
Interest paid			$ 2,875	$ 0

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance (in shares) at Sep. 25, 2021	1,854,403
Ending balance (in shares) at Mar. 26, 2022	1,854,403
Beginning balance at Sep. 25, 2021	$ 185,440	$ 4,312,969	$ (4,153,967)
Ending balance at Mar. 26, 2022	$ 185,440	4,337,770	(5,289,611)	$ (766,401)
Stock-based compensation		24,801
Net loss			(1,135,644)	(1,135,644)
Beginning balance (in shares) at Sep. 25, 2021	1,854,403
Ending balance (in shares) at Sep. 24, 2022	1,854,403
Beginning balance at Sep. 25, 2021	$ 185,440	4,312,969	(4,153,967)
Ending balance at Sep. 24, 2022	$ 185,440	4,364,687	(6,485,106)	(1,934,979)
Net loss				(2,331,000)
Beginning balance (in shares) at Dec. 25, 2021	1,854,403
Ending balance (in shares) at Mar. 26, 2022	1,854,403
Beginning balance at Dec. 25, 2021	$ 185,440	4,325,592	(4,767,328)
Ending balance at Mar. 26, 2022	$ 185,440	4,337,770	(5,289,611)	(766,401)
Stock-based compensation		12,178
Net loss			(522,283)	(522,283)
Beginning balance (in shares) at Sep. 24, 2022	1,854,403
Ending balance (in shares) at Mar. 25, 2023	1,854,403
Beginning balance at Sep. 24, 2022	$ 185,440	4,364,687	(6,485,106)	(1,934,979)
Ending balance at Mar. 25, 2023	$ 185,440	4,390,100	(7,962,733)	(3,387,193)
Stock-based compensation		25,413
Net loss			(1,477,627)	(1,477,627)
Beginning balance (in shares) at Dec. 24, 2022	1,854,403
Ending balance (in shares) at Mar. 25, 2023	1,854,403
Beginning balance at Dec. 24, 2022	$ 185,440	4,378,017	(7,333,706)
Ending balance at Mar. 25, 2023	$ 185,440	4,390,100	(7,962,733)	(3,387,193)
Stock-based compensation		$ 12,083
Net loss			$ (629,027)	$ (629,027)

Note 1 - Description of the Bus

Note 1 - Description of the Business and Basis of Presentation	3 Months Ended
	Mar. 25, 2023
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1. Description of the Business and Basis of Presentation Company Operations Technical Communications Corporation (“TCC”) was incorporated in Massachusetts in 1961; its wholly-owned subsidiary, TCC Investment Corp., was organized in that jurisdiction in 1982. Technical Communications Corporation and TCC Investment Corp. are sometimes collectively referred to herein as the “Company”. The Company’s business consists of only one industry segment, which is the design, development, manufacture, distribution, marketing and sale of communications security devices, systems and services. The secure communications solutions provided by TCC protect vital information transmitted over a wide range of data, video, fax and voice networks. TCC’s products have been sold into over 115 countries and are in service with governments, military agencies, telecommunications carriers, financial institutions and multinational corporations. Interim Financial Statements The accompanying unaudited consolidated financial statements of Technical Communications Corporation and its wholly-owned subsidiary include all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented and in order to make the financial statements not misleading. All such adjustments are of a normal recurring nature. Interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2023. The September 24, 2022 consolidated balance sheet contained herein was derived from the Company’s audited consolidated balance sheet at September 24, 2022 as contained in the Company’s Annual Report on Form 10-K for the fiscal year then ended as filed with the U.S. Securities and Exchange Commission (“SEC”). Certain footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by SEC rules and regulations. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the fiscal year ended September 24, 2022 included in its Annual Report on Form 10-K as filed with the SEC (the “2022 Annual Report”). The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the FASB. The FASB sets generally accepted accounting principles (“GAAP”) that the Company follows to ensure it consistently reports its financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification Liquidity and Ability to Continue as a Going Concern For the six months ended March 25, 2023, the Company generated a net loss of $1,477,627 and for the fiscal years ended September 24, 2022 and September 25, 2021, the Company generated net losses of approximately $2,331,000 and $1,088,000, respectively. The Company has experienced declining revenues during the first six months ended March 25, 2023 and has an accumulated deficit of $7,962,733 at March 25, 2023. These factors continue to raise substantial doubt about the Company's ability to continue as a going concern. Such consolidated financial statements do not include any adjustments to reflect the substantial doubt about the Company’s ability to continue as a going concern. In December 2022 the Company implemented a partial furlough plan for the majority of salaried employees. The plan reduces the workweek to 24 hours and salaries have been reduced commensurately. In January of 2023 the Company reduced the workweek further to 16 hours. With this furlough plan in place we anticipate our current liquidity will be sufficient to fund our activities through June 2023. In order to have sufficient cash to fund our operations beyond that point, we will need to secure new customer contracts, raise additional equity or debt capital, and reduce expenses, including payroll and payroll-related expenses through another employee furlough and/or separations. In February 2023, the Company’s entered into a Fourth Amended and Restated Promissory Note with Carl H. Guild, Jr., the Company’s Chief Executive Officer (the “Amended Notes Payable”). The amendment fixed the rate of interest at 6.5% per annum, removed the demand aspect of the note and added Michelle S. Guild as a holder of the Amended Notes Payable. Under the terms of the Amended Notes Payable, the Company shall repay the principal balance of $4,000,000 in sixty consecutive monthly payments of principal and interest commencing on March 23, 2023 and ending February 23, 2028 (the “Maturity Date”). NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d) In order to have sufficient capital resources to fund operations, the Company has been working diligently to secure several large orders with new and existing customers. The receipt of these orders has been significantly delayed and will continue to be difficult to predict due to the impact of the COVID-19 pandemic on our customers as a result of their operations being reduced or shut down. TCC has been able to maintain its operations during this sustained period of disruption, but a continuation of the disruption in either our customers’ operations or those of the Company will continue to have a material adverse impact on sales activity and revenue. The Company is working diligently to secure additional capital through equity or debt arrangements in addition to the recent funding received from the SBA’s Economic Injury Disaster Loan program and Mr. Guild (see Note 7). The Company is actively working with equity investors as well as debt investors, such as the SBA and Mr. Guild to secure additional funding, although we cannot provide assurances we will be able to secure such new funding, especially in light of the tightening of the credit markets and continuing volatility of the capital markets as a result of the coronavirus. Moreover, the Company’s common stock was delisted from the Nasdaq Capital Market effective January 25, 2021; while the common stock is quoted on the OTC Bulletin Board, the change in listing may have a negative impact on the liquidity of the stock and the Company’s ability to raise capital through offerings of its equity securities. Should the Company be unsuccessful in these efforts, it would be forced to implement headcount reductions, additional employee furloughs and/or reduced hours for certain employees, or cease operations completely. Reporting Period The Company’s by-laws call for its fiscal year to end on the Saturday closest to the last day of September, unless otherwise decided by its Board of Directors. Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of TCC and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The discussion and analysis of the Company’s financial condition and results of operations are based on the unaudited consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these unaudited consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. On an ongoing basis, management evaluates its estimates and judgments, including but not limited to those related to revenue recognition, inventory reserves, receivable reserves, marketable securities, impairment of long-lived assets, income taxes, fair value of financial instruments and stock-based compensation. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies and Significant Judgments and Estimates	3 Months Ended
	Mar. 25, 2023
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	NOTE 2. Summary of Significant Accounting Policies and Significant Judgments and Estimates The Company’s significant accounting policies are described in “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its 2022 Annual Report and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this Quarterly Report should be read in conjunction with the Company’s 2022 Annual Report. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

Note 3 - Stock-based Compensati

Note 3 - Stock-based Compensation	3 Months Ended
Note 3 - Stock-based Compensation	Mar. 25, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	NOTE 3. Stock-Based Compensation The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the first three and six months of fiscal 2023 and 2022: March 2023 March 2022 3 months 6 months 3 months 6 months Selling, general and administrative expenses $ 10,671 $ 22,443 $ 10,112 $ 20,674 Product development expenses 1,412 2,970 2,066 4,127 Total share-based compensation expense before taxes $ 12,083 $ 25,413 $ 12,178 $ 24,801 As of March 25, 2023, there was approximately $56,000 of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of March 25, 2023, the weighted average period over which the compensation expense is expected to be recognized is 3 years. On May 6, 2021 the Company adopted the 2021 Equity Incentive Plan (the “Plan”). The Plan authorizes the issuance of up to 300,000 shares. The Plan has not been approved by shareholders and allows for non-qualified stock option grants, stock appreciation rights (SARS), restricted stock and stock units and other stock and stock based awards. There were 28,000 shares outstanding under this plan as of March 25, 2023. Vesting periods are at the discretion of the Board of Directors and typically range between zero five ten The Technical Communications Corporation 2005 Non-Statutory Stock Option Plan and 2010 Equity Incentive Plan are expired as of December 25, 2021 and options are no longer available for grant thereunder, although vested, unexercised options under such plans remain outstanding. There are an aggregate of 121,900 shares outstanding under both plans at March 25, 2023. Vesting periods are at the discretion of the Board of Directors and typically range between zero five ten NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d) The following table summarizes stock option activity: Options Outstanding Number of Shares Unvested Vested Total Weighted Weighted (in years) Outstanding, September 24, 2022 56,700 108,200 164,900 $ 3.45 6.0 Grants - - - Vested - - - Cancellations/forfeitures - - - Outstanding, December 24, 2022 56,700 108,200 164,900 $ 3.45 5.7 Grants - - - - Vested (2,100 ) 2,100 - Cancellations/forfeitures (8,000 ) (7,000 ) (15,000 ) Outstanding, March 25, 2023 46,600 103,300 149,900 $ 3.48 5.7 Information related to the stock options vested and expected to vest as of March 25, 2023 is as follows: Number Weighted Weighted Exercisable Exercisable Range of Exercise Prices $1.01 - $2.00 40,000 8.4 $ 1.79 12,000 $ 1.87 $2.01 - $3.00 34,300 4.9 $ 2.61 25,900 $ 2.65 $3.01 - $4.00 43,500 6.1 $ 3.60 33,300 $ 3.60 $4.01 - $5.00 9,600 2.2 $ 4.09 9,600 $ 4.09 $5.01 - $6.00 22,500 2.8 $ 7.36 22,500 $ 7.36 149,900 5.7 $ 3.48 103,300 $ 3.81 There were no “in-the-money” outstanding and exercisable options as of March 25, 2023 and March 26, 2022 and therefore no aggregate intrinsic value. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

Note 4 - Revenue

Note 4 - Revenue	3 Months Ended
Note 4 - Revenue	Mar. 25, 2023
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	NOTE 4. Revenue The following table presents the Company’s revenues disaggregated by revenue type: Revenue type: March 25, 2023 March 26, 2022 3 months 6 months 3 months 6 months Engineering services $ 16,374 $ 16,374 $ 513,432 $ 857,133 Equipment sales 11,410 132,947 51,680 131,460 Total $ 27,784 $ 149,321 $ 565,112 $ 988,593 Engineering services revenue consists of funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. The Company also derives revenue from developing and designing custom cryptographic solutions for customers’ unique secure voice, data and video communications requirements and integrating such solutions into existing systems. These contracts can vary but typically call for fixed monthly payments or payments due upon meeting certain milestones. Customers are billed monthly or upon achieving the milestone Equipment sales revenue consists of sales of communications security equipment for voice, data, facsimile and video networks for military, government and corporate/industrial applications. Equipment sales are billed to the customer upon shipment with typical payment terms requiring a down payment at the time of order with the balance due prior to shipment. For government and certain long term customers, we may grant net payment terms.

Note 5 - Inventories

Note 5 - Inventories	3 Months Ended
Note 5 - Inventories	Mar. 25, 2023
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE 5. Inventories Inventories consisted of the following: March 2023 September 2022 Work in process $ 472,041 $ 489,854 Raw materials 501,114 476,331 Total inventory, net $ 973,155 $ 966,185

Note 6 - Leases

Note 6 - Leases	3 Months Ended
Note 6 - Leases	Mar. 25, 2023
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	NOTE 6. Leases The Company maintains a real estate lease with a third party for all manufacturing, research and development, and corporate operations which will expire on March 30, 2024. The Company classifies this lease as an operating lease with the costs recognized as a selling, general and administrative expense in its consolidated statements of operations. The lease expense for each of the six month periods ended March 25, 2023 and March 26, 2022 was $85,301. The table below presents the maturity of the Company’s operating lease liability as of March 25, 2023: 2023 $ 85,301 2024 85,301 Total lease payments 170,602 Less: Imputed interest (3,415 ) Total lease liability $ 167,187 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

Note 7 - Debt

Note 7 - Debt	3 Months Ended
Note 7 - Debt	Mar. 25, 2023
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE 7. Debt SBA Loan On August 10, 2020, the Company was granted a loan (the “SBA Loan”) from the SBA in the principal amount of $150,000 pursuant to the Economic Injury Disaster Loan program. The SBA Loan, which is evidenced by a Promissory Note dated August 10, 2020, is payable in monthly installments of $731, including principal and interest, over 30 years at an interest rate of 3.75% per year. The SBA Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The proceeds from this loan must be used solely as working capital to alleviate economic injury caused by the Covid-19 pandemic. Although originally repayable commencing one year after grant, on March 12, 2021 the SBA announced that payments on the SBA Loan would be deferred an additional year. As part of the SBA Loan, the Company granted the SBA a continuing security interest in and to any and all “Collateral” to secure payment and performance of all debts, liabilities and obligations of the Company to the SBA under the SBA Loan. The Collateral includes all tangible and intangible personal property that the Company owns or acquires or creates immediately upon the acquisition or creation thereof, including, but not limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes, (d) chattel paper, including tangible chattel paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts, including health-care insurance receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims, (j) general intangibles, including payment intangibles and software, and (k) as-extracted collateral, in each case as such terms may from time to time be defined in the Uniform Commercial Code. The aggregate amounts of principal maturities of the SBA Loan for the following fiscal years are: 2023 $ 1,319 2024 3,252 2025 3,376 2026 3,505 2027 3,639 Thereafter 134,909 $ 150,000 Related Party Note Payable On August 4, 2022, the Company issued a Third Amended and Restated Demand Promissory Note in the principal amount of up to $4,000,000 in favor of Carl H. Guild, Jr. Mr. Guild, the Company’s Chief Executive Officer, President and Chairman of the Board, loaned the money to the Company to provide working capital. The $4,000,000 consists of $1,000,000 previously loaned to the Company at an interest rate of 6% and $2,000,000 previously loaned to the Company at an interest rate of 7.5% and an additional $1,000,000 at an interest rate of 7.5%. In February 2023, the Company entered into a Fourth Amended and Restated Promissory Note with Mr. Guild (the “Amended Notes Payable”). The amendment fixed the rate of interest at 6.5% per annum, removed the demand aspect of the note and added Michelle S. Guild as a holder of the Amended Notes Payable. Under the terms of the Amended Notes Payable, the Company shall repay the principal balance of $4,000,000 in sixty consecutive monthly payments of principal and interest commencing on March 23, 2023 and ending February 23, 2028 (the “Maturity Date”). In an Event of Default or Change in Control, as defined, the Amended Notes Payable may, at the option of the holder, become immediately due and payable. As of March 25, 2023, no principal payments have been made on the Amended Notes Payable and the outstanding balance was $4,000,000 plus accrued interest of $234,016. Interest expense incurred under the related party note payable for the three and six months ended March 25, 2023 was $60,087 and $127,526, respectively. Interest expense incurred under the related party note payable for the three and six months ended March 26, 2022 was $24,934 and $46,660 respectively. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d) The aggregate amounts of principal maturities of the related party note payable for the following fiscal years are: 2023, remaining $ 402,682 2024 726,747 2025 775,419 2026 827,350 2027 882,759 Thereafter 385,043 $ 4,000,000

Note 8 - Income Taxes

Note 8 - Income Taxes	3 Months Ended
Note 8 - Income Taxes	Mar. 25, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 8. Income Taxes The Company has not Under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) the Company is entitled to Employee Retention Credits for parts of its fiscal 2020 and 2021 years. The Company is entitled to $515,966 in credits of which $380,442 was received during the first six months of fiscal 2023. The Company expects to receive the remainder of the refunds from the IRS in fiscal 2023.

Note 9 - Loss Per Share

Note 9 - Loss Per Share	3 Months Ended
Note 9 - Loss Per Share	Mar. 25, 2023
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 9. Loss Per Share Outstanding potentially dilutive stock options, which were not included in the net loss per share amounts as their effect would have been anti-dilutive, were as follows: 164,900 shares at March 25, 2023 and 143,900 shares at March 26, 2022.

Note 10 - Major Customers and E

Note 10 - Major Customers and Export Sales	3 Months Ended
Note 10 - Major Customers and Export Sales	Mar. 25, 2023
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	NOTE 10. Major Customers and Export Sales During the three months ended March 23, 2023, three three During the three months ended March 26, 2022, one one A breakdown of foreign and domestic net revenue is as follows: March 25, 2023 March 26, 2022 3 months 6 months 3 months 6 months Domestic $ 22,143 $ 116,760 $ 513,432 $ 857,133 Foreign 5,641 32,561 51,680 131,460 Total net revenue $ 27,784 $ 149,321 $ 565,112 $ 988,593 The Company sold products into one two two A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue may include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes foreign revenues by country as a percentage of total foreign revenue. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d) March 2023 March 2022 3 months 6 months 3 months 6 months Philippines 100 % 17 % 100 % 39 % Saudi Arabia - 83 % - 61 % A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, is as follows: March 2023 March 2022 3 months 6 months 3 months 6 months Far East 100 % 17 % 100 % 39 % Mid-East - 83 % - 61 %

Note 3 - Stock-based Compensa_2

Note 3 - Stock-based Compensation (Tables)	3 Months Ended
Note 3 - Stock-based Compensation (Tables)	Mar. 25, 2023
Notes Tables
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]	March 2023 March 2022 3 months 6 months 3 months 6 months Selling, general and administrative expenses $ 10,671 $ 22,443 $ 10,112 $ 20,674 Product development expenses 1,412 2,970 2,066 4,127 Total share-based compensation expense before taxes $ 12,083 $ 25,413 $ 12,178 $ 24,801
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Options Outstanding Number of Shares Unvested Vested Total Weighted Weighted (in years) Outstanding, September 24, 2022 56,700 108,200 164,900 $ 3.45 6.0 Grants - - - Vested - - - Cancellations/forfeitures - - - Outstanding, December 24, 2022 56,700 108,200 164,900 $ 3.45 5.7 Grants - - - - Vested (2,100 ) 2,100 - Cancellations/forfeitures (8,000 ) (7,000 ) (15,000 ) Outstanding, March 25, 2023 46,600 103,300 149,900 $ 3.48 5.7
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]	Number Weighted Weighted Exercisable Exercisable Range of Exercise Prices $1.01 - $2.00 40,000 8.4 $ 1.79 12,000 $ 1.87 $2.01 - $3.00 34,300 4.9 $ 2.61 25,900 $ 2.65 $3.01 - $4.00 43,500 6.1 $ 3.60 33,300 $ 3.60 $4.01 - $5.00 9,600 2.2 $ 4.09 9,600 $ 4.09 $5.01 - $6.00 22,500 2.8 $ 7.36 22,500 $ 7.36 149,900 5.7 $ 3.48 103,300 $ 3.81

Note 4 - Revenue (Tables)

Note 4 - Revenue (Tables)	3 Months Ended
Note 4 - Revenue (Tables)	Mar. 25, 2023
Notes Tables
Disaggregation of Revenue [Table Text Block]	March 25, 2023 March 26, 2022 3 months 6 months 3 months 6 months Engineering services $ 16,374 $ 16,374 $ 513,432 $ 857,133 Equipment sales 11,410 132,947 51,680 131,460 Total $ 27,784 $ 149,321 $ 565,112 $ 988,593

Note 5 - Inventories (Tables)

Note 5 - Inventories (Tables)	3 Months Ended
Note 5 - Inventories (Tables)	Mar. 25, 2023
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 2023 September 2022 Work in process $ 472,041 $ 489,854 Raw materials 501,114 476,331 Total inventory, net $ 973,155 $ 966,185

Note 6 - Leases (Tables)

Note 6 - Leases (Tables)	3 Months Ended
Note 6 - Leases (Tables)	Mar. 25, 2023
Notes Tables
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	2023 $ 85,301 2024 85,301 Total lease payments 170,602 Less: Imputed interest (3,415 ) Total lease liability $ 167,187

Note 7 - Debt (Tables)

Note 7 - Debt (Tables)	3 Months Ended
Note 7 - Debt (Tables)	Mar. 25, 2023
Notes Tables
Schedule of Maturities of Long-Term Debt [Table Text Block]	2023 $ 1,319 2024 3,252 2025 3,376 2026 3,505 2027 3,639 Thereafter 134,909 $ 150,000 2023, remaining $ 402,682 2024 726,747 2025 775,419 2026 827,350 2027 882,759 Thereafter 385,043 $ 4,000,000

Note 10 - Major Customers and_2

Note 10 - Major Customers and Export Sales (Tables)	3 Months Ended
Note 10 - Major Customers and Export Sales (Tables)	Mar. 25, 2023
Notes Tables
Revenue from External Customers by Geographic Areas [Table Text Block]	March 25, 2023 March 26, 2022 3 months 6 months 3 months 6 months Domestic $ 22,143 $ 116,760 $ 513,432 $ 857,133 Foreign 5,641 32,561 51,680 131,460 Total net revenue $ 27,784 $ 149,321 $ 565,112 $ 988,593
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	March 2023 March 2022 3 months 6 months 3 months 6 months Philippines 100 % 17 % 100 % 39 % Saudi Arabia - 83 % - 61 % March 2023 March 2022 3 months 6 months 3 months 6 months Far East 100 % 17 % 100 % 39 % Mid-East - 83 % - 61 %

Note 1 - Description of the B_2

Note 1 - Description of the Business and Basis of Presentation (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022	Sep. 24, 2022	Sep. 25, 2021	Feb. 28, 2023	May 06, 2021
Net Income (Loss) Attributable to Parent	$ 629,027	$ 522,283	$ 1,477,627	$ 1,135,644	$ 2,331,000	$ 1,088,000
Retained Earnings (Accumulated Deficit)	7,962,733		7,962,733		$ 6,485,106
Mr. Carl H. Guild [Member]
Debt Instrument, Interest Rate, Stated Percentage								6%
Notes Payable	$ 4,000,000		$ 4,000,000				$ 4,000,000
Mr. Carl H. Guild [Member] \| Previously Loaned Promissory Note 1 [Member]
Debt Instrument, Interest Rate, Stated Percentage							6.50%
Notes Payable							$ 4,000,000

Note 3 - Stock-based Compensa_3

Note 3 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Dec. 24, 2022	Mar. 25, 2023	Sep. 24, 2022	Mar. 26, 2022	May 06, 2021
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	$ 56,000		$ 56,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	0	0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number	149,900	164,900	149,900	164,900
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value	$ 0		$ 0		$ 0
Equity Incentive Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized						300,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross			28,000
The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number	121,900		121,900
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition			3 years
Share-Based Payment Arrangement, Option [Member] \| Equity Incentive Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year)			10 years
Share-Based Payment Arrangement, Option [Member] \| Equity Incentive Plan 2021 [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period			0 years
Share-Based Payment Arrangement, Option [Member] \| Equity Incentive Plan 2021 [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period			5 years
Share-Based Payment Arrangement, Option [Member] \| The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition			10 years
Share-Based Payment Arrangement, Option [Member] \| The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period			0 years
Share-Based Payment Arrangement, Option [Member] \| The 2005 Nonstatutory Stock Option Plan and 2010 Equity Incentive Plan [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period			5 years

Note 3 - Stock-based Compensa_4

Note 3 - Stock-based Compensation - Stock-based Compensation Costs (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022
Total share-based compensation expense before taxes	$ 12,083	$ 12,178	$ 25,413	$ 24,801
Selling, General and Administrative Expenses [Member]
Total share-based compensation expense before taxes	10,671	10,112	22,443	20,674
Product Development Expenses [Member]
Total share-based compensation expense before taxes	$ 1,412	$ 2,066	$ 2,970	$ 4,127

Note 3 - Stock-based Compensa_5

Note 3 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Dec. 24, 2022	Mar. 25, 2023	Sep. 24, 2022
Outstanding, unvested (in shares)	56,700	56,700	56,700
Outstanding, vested (in shares)	108,200	108,200	108,200
Outstanding (in shares)	164,900	164,900	164,900
Outstanding (in dollars per share)	$ 3.48	$ 3.45	$ 3.48	$ 3.45
Outstanding (Year)	5 years 8 months 12 days	6 years
Grants (in shares)	0	0
Vested (in shares)	(2,100)	0
Cancellations/forfeitures (in shares)	(8,000)	0
Vested (in shares)	2,100	0
Cancellations/forfeitures, vested (in shares)	(7,000)
Cancellations/forfeitures (in shares)	(15,000)
Outstanding, unvested (in shares)	46,600	56,700	46,600
Outstanding, December 24, 2022 (in shares)	103,300	108,200	103,300
Outstanding (in shares)	149,900	164,900	149,900

Note 3 - Stock Based Compensati

Note 3 - Stock Based Compensation - Information Related to Stock Options (Details) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Dec. 24, 2022	Mar. 31, 2023	Sep. 24, 2022
Shares, outstanding (in shares)	149,900
Outstanding (in dollars per share)	$ 3.48	$ 3.45		$ 3.45
Exercisable, outstanding (in shares)	103,300
Exercisable, exercise price (in dollars per share)	$ 3.81
Weighted average contractual life (Year)		5 years 8 months 12 days
Range 1 [Member]
Lower exericse price (in dollars per share)			$ 1.01
Higher exericse price (in dollars per share)	$ 2
Shares, outstanding (in shares)	40,000
Outstanding (in dollars per share)	$ 1.79
Exercisable, outstanding (in shares)	12,000
Exercisable, exercise price (in dollars per share)	$ 1.87
Range 2 [Member]
Lower exericse price (in dollars per share)			2.01
Higher exericse price (in dollars per share)	$ 3
Shares, outstanding (in shares)	34,300
Outstanding (in dollars per share)	$ 2.61
Exercisable, outstanding (in shares)	25,900
Exercisable, exercise price (in dollars per share)	$ 2.65
Weighted average contractual life (Year)	4 years 10 months 24 days
Range 3 [Member]
Lower exericse price (in dollars per share)			3.01
Higher exericse price (in dollars per share)	$ 4
Shares, outstanding (in shares)	43,500
Outstanding (in dollars per share)	$ 3.60
Exercisable, outstanding (in shares)	33,300
Exercisable, exercise price (in dollars per share)	$ 3.60
Weighted average contractual life (Year)	6 years 1 month 6 days
Range 4 [Member]
Lower exericse price (in dollars per share)			4.01
Higher exericse price (in dollars per share)	$ 5
Shares, outstanding (in shares)	9,600
Outstanding (in dollars per share)	$ 4.09
Exercisable, outstanding (in shares)	9,600
Exercisable, exercise price (in dollars per share)	$ 4.09
Weighted average contractual life (Year)	2 years 2 months 12 days
Range 5 [Member]
Lower exericse price (in dollars per share)			$ 5.01
Higher exericse price (in dollars per share)	$ 6
Shares, outstanding (in shares)	22,500
Outstanding (in dollars per share)	$ 7.36
Exercisable, outstanding (in shares)	22,500
Exercisable, exercise price (in dollars per share)	$ 7.36
Weighted average contractual life (Year)	2 years 9 months 18 days

Note 4 - Revenue - Disaggreagat

Note 4 - Revenue - Disaggreagation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022
Net revenue	$ 27,784	$ 565,112	$ 149,321	$ 988,593
Engineering Services [Member]
Net revenue	16,374	513,432	16,374	857,133
Equipment Sales [Member]
Net revenue	$ 11,410	$ 51,680	$ 132,947	$ 131,460

Note 5 - Inventories - Schedule

Note 5 - Inventories - Schedule of Inventory (Details) - USD ($)	Mar. 25, 2023	Sep. 24, 2022
Work in process	$ 472,041	$ 489,854
Raw materials	501,114	476,331
Total inventory, net	$ 973,155	$ 966,185

Note 6 - Leases (Details Textua

Note 6 - Leases (Details Textual) - USD ($)	6 Months Ended
Note 6 - Leases (Details Textual) - USD ($)	Mar. 25, 2023	Mar. 26, 2022
Operating Lease, Expense	$ 85,301	$ 85,301

Note 6 - Leases - Maturity of O

Note 6 - Leases - Maturity of Operating Lease Liability (Details)	Mar. 25, 2023 USD ($)
2023	$ 85,301
2024	85,301
Total lease payments	170,602
Less: Imputed interest	(3,415)
Total lease liability	$ 167,187

Note 7 - Debt (Details Textual)

Note 7 - Debt (Details Textual) - USD ($)		3 Months Ended		6 Months Ended
Note 7 - Debt (Details Textual) - USD ($)	Aug. 10, 2020	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022	Feb. 28, 2023	Dec. 24, 2022	Aug. 04, 2022	Apr. 07, 2022	Nov. 18, 2021	May 06, 2021
Proceeds from Issuance of Long-Term Debt				$ 1,000,000	$ 900,000
Mr. Carl H. Guild [Member]
Notes Payable		$ 4,000,000		4,000,000		$ 4,000,000
Line of Credit Facility, Maximum Borrowing Capacity Before Interest Rate Increase									$ 1,000,000
Line of Credit Facility, Maximum Borrowing Capacity										$ 2,000,000
Debt Instrument, Interest Rate, Stated Percentage											6%
Interest Payable		234,016		234,016
Interest Expense, Debt		$ 60,087	$ 24,934	$ 127,526	$ 46,660
Mr. Carl H. Guild [Member] \| Advances Beyond Initial One Million [Member]
Debt Instrument, Interest Rate, Stated Percentage										7.50%
The S B A Loan [Member]
Proceeds from Issuance of Long-Term Debt	$ 150,000
Debt Instrument, Periodic Payment	$ 731
Debt Instrument, Term (Year)	30 years
Debt Instrument, Interest Rate, Stated Percentage	3.75%
Demand Promissory Note [Member] \| Mr. Carl H. Guild [Member]
Notes Payable								$ 4,000,000
Previously Loaned Promissory Note 3 [Member]
Notes Payable							$ 1,000,000
Previously Loaned Promissory Note 3 [Member] \| Mr. Carl H. Guild [Member]
Debt Instrument, Interest Rate, Stated Percentage							7.50%
Previously Loaned Promissory Note 1 [Member] \| Mr. Carl H. Guild [Member]
Notes Payable						$ 4,000,000
Debt Instrument, Interest Rate, Stated Percentage						6.50%

Note 7 - Debt - Principal Matur

Note 7 - Debt - Principal Maturities of Long-term Debt (Details)	Mar. 25, 2023 USD ($)
Mr. Carl H. Guild [Member]
2023	$ 402,682
2024	726,747
2025	775,419
2026	827,350
2027	882,759
Thereafter	385,043
Long-Term Debt	4,000,000
The S B A Loan [Member]
2023	1,319
2024	3,252
2025	3,376
2026	3,505
2027	3,639
Thereafter	134,909
Long-Term Debt	$ 150,000

Note 8 - Income Taxes (Details

Note 8 - Income Taxes (Details Textual) - USD ($)	6 Months Ended
Note 8 - Income Taxes (Details Textual) - USD ($)	Mar. 25, 2023	Mar. 26, 2022	Sep. 24, 2022
Income Tax Expense (Benefit), Total	$ 0	$ 0
Grants Receivable, Current	135,524		$ 515,966
Proceeds from Employee Retention Credits	380,442
CARES Act [Member]
Grants Receivable, Current	$ 515,966

Note 9 - Loss Per Share (Detail

Note 9 - Loss Per Share (Details Textual) - shares	6 Months Ended
Note 9 - Loss Per Share (Details Textual) - shares	Mar. 25, 2023	Mar. 26, 2022
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	164,900	143,900

Note 10 - Major Customers and_3

Note 10 - Major Customers and Export Sales (Details Textual)	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Mar. 26, 2022	Mar. 26, 2023	Mar. 25, 2023	Mar. 26, 2022
Number of Countries in Which Products are Sold	1		1		2
Customer Concentration Risk [Member] \| Revenue Benchmark [Member]
Number of Major Customers	3	1		3
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Three Customers [Member]
Concentration Risk, Percentage	98%			88%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| One Customer [Member]
Number of Major Customers					1
Concentration Risk, Percentage		91%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Customer One [Member]
Concentration Risk, Percentage					87%

Note 10 - Major Customers and_4

Note 10 - Major Customers and Export Sales - Foreign and Domestic Net Revenue 2 (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022
Net revenue	$ 27,784	$ 565,112	$ 149,321	$ 988,593
UNITED STATES
Net revenue	22,143	513,432	116,760	857,133
Non-US [Member]
Net revenue	$ 5,641	$ 51,680	$ 32,561	$ 131,460

Note 10 - Major Customers and_5

Note 10 - Major Customers and Export Sales - Foreign Revenue (Details)	3 Months Ended		6 Months Ended
	Mar. 25, 2023	Mar. 26, 2022	Mar. 25, 2023	Mar. 26, 2022
PHILIPPINES
Percent of revenue by country	100%	100%	17%	39%
Far East [Member]
Percent of revenue	100%	100%	17%	39%
Middle East [Member]
Percent of revenue	0%	0%	83%	61%
SAUDI ARABIA
Percent of revenue by country	0%	0%	83%	61%