UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

Quarterly Report Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934.

 

For the quarterly period ended December 31, 2015

 

Commission file number 0-10976

 

 

 

MICROWAVE FILTER COMPANY, INC.

(Exact name of registrant as specified in its charter.)

 

 

 

New York   16-0928443
(State of Incorporation)   (I.R.S. Employer Identification Number)
     
6743 Kinne Street, East Syracuse, N.Y.   13057
(Address of Principal Executive Offices)   (Zip Code)

 

(315) 438-4700
Registrant’s telephone number, including area code

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports, and (2) has been subject to such filing requirements for the past 90 days.

YES [X] NO [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES [X] NO [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).

 

Large accelerated filer [  ]

Accelerated filer [  ]

Non-accelerated filer [  ] (Do not check if smaller reporting company)

Smaller reporting company [X].

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES [  ] NO [X]

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Common Stock, $.10 Par Value - 2,581,295 shares as of February 1, 2016.

 

 

 

 
 

 

MICROWAVE FILTER COMPANY, INC.
Form 10-Q

 

Index

 

Item   Page
     
Part I Financial Information    
     
Item 1. Financial Statements   3
     
Condensed Consolidated Balance Sheets (unaudited)   3
   
Condensed Consolidated Statements of Operations (unaudited)   4
   
Condensed Consolidated Statements of Cash Flows (unaudited)   5
     
Notes to Condensed Consolidated Financial Statements (unaudited)   6
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   9
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk   14
     
Item 4. Controls and Procedures   14
     
Part II Other Information  
     
Signatures   16

 

2
 

 

PART I. - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Microwave Filter Company and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

 

   December 31, 2015   September 30, 2015 
Assets          
Current Assets:          
Cash and cash equivalents  $957,836   $896,667 
Accounts receivable-trade, net of allowance for doubtful accounts of $4,000 and $4,000   208,163    392,888 
Inventories, net   430,063    447,507 
Prepaid expenses and other current assets   56,267    44,099 
Total current assets   1,652,329    1,781,161 
           
Property, plant and equipment, net   411,565    435,075 
Total assets  $2,063,894   $2,216,236 
           
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable  $59,176   $74,610 
Customer deposits   18,619    7,391 
Accrued payroll and related expenses   32,562    56,371 
Accrued compensated absences   134,413    139,315 
Notes payable - short term   45,036    44,528 
Other current liabilities   19,524    24,541 
Total current liabilities   309,330    346,756 
           
Notes payable -long term   354,175    365,650 
Total other liabilities   354,175    365,650 
Total liabilities   663,505    712,406 
           
Stockholders’ Equity:          
Common stock, $.10 par value Authorized 5,000,000 shares, Issued 4,324,140 shares in 2016 and 2015, Outstanding 2,581,295 shares in 2016 and 2,581,466 in 2015   432,414    432,414 
Additional paid-in capital   3,248,706    3,248,706 
Accumulated deficit   (586,926)   (483,575)
Common stock in treasury, at cost 1,742,845 shares in 2016 and 1,742,674 shares in 2015   (1,693,805)   (1,693,715)
Total stockholders’ equity   1,400,389    1,503,830 
Total liabilities and stockholders’ equity  $2,063,894   $2,216,236 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

3
 

 

Microwave Filter Company and Subsidiaries

Condensed Consolidated Statements of Operations
(Unaudited)

 

   Three months ended 
   December 31, 
   2015   2014 
         
Net sales  $767,547   $849,927 
           
Cost of goods sold   508,742    539,813 
           
Gross profit   258,805    310,114 
           
Selling, general and administrative expenses   359,164    400,188 
           
Loss from operations   (100,359)   (90,074)
           
Other income (expense), net   (2,992)   (3,952)
           
Loss before income taxes   (103,351)   (94,026)
           
(Benefit) provision for income taxes   0    0 
           
Net loss  $(103,351)  $(94,026)
           
Net Loss Per Common Share          
Basic and diluted loss per share  $(0.04)  $(0.04)
           
Weighted Average Common Shares Outstanding          
Shares used in computing net loss per share:   2,581,434    2,583,025 


See Accompanying Notes to Condensed Consolidated Financial Statements

 

4
 

 

Microwave Filter Company and Subsidiaries

Condensed Consolidated Statements of Cash Flows
(Unaudited)

 

   Three months ended 
   December 31, 
   2015   2014 
Cash flows from operating activities:          
Net loss  $(103,351)  $(94,026)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Depreciation   23,510    26,769 
Change in operating assets and liabilities:          
Accounts receivable-trade   184,725    15,936 
Inventories   17,444    6,757 
Prepaid expenses and other assets   (12,168)   18,891 
Accounts payable and customer deposits   (4,206)   (4,765)
Accrued payroll and related expenses and compensated absences   (28,711)   8,097 
Other current liabilities   (5,017)   (4,292)
Net cash (used in) provided by operating activities   72,226    (26,633)
           
Cash flows from investing activities:          
Property, plant and equipment purchased   0    (38,599)
Net cash used in investing activities   0    (38,599)
           
Cash flows from financing activities:          
Repayment of note payable   (10,967)   (10,480)
Purchase of treasury stock   (90)   (1,150)
Net cash used in financing activities   (11,057)   (11,630)
           
Increase (decrease) in cash and cash equivalents   61,169    (76,862)
           
Cash and cash equivalents at beginning of period   896,667    1,081,567 
           
Cash and cash equivalents at end of period  $957,836   $1,004,705 
           
Supplemental Schedule of Cash Flow Information:          
Interest  $4,624   $5,111 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

5
 

 

MICROWAVE FILTER COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

DECEMBER 31, 2015

 

Note 1. Summary of Significant Accounting Policies

 

The following condensed balance sheet as of September 30, 2015, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the three month period ended December 31, 2015 are not necessarily indicative of the results that may be expected for the year ended September 30, 2016. For further information, refer to the condensed consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2015.

 

Note 2. Industry Segment Data

 

The Company’s primary business segment involves the operations of Microwave Filter Company, Inc. (MFC) which designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations. Markets served include cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial communications and defense electronics.

 

Note 3. Inventories

 

Inventories are stated at the lower of cost determined on the first-in, first-out method or market.

 

Inventories net of reserve for obsolescence consisted of the following:

 

   December 31, 2015   September 30, 2015 
         
Raw materials and stock parts  $367,363   $367,344 
Work-in-process   18,803    19,884 
Finished goods   43,897    60,279 
           
   $430,063   $447,507 

 

The Company’s reserve for obsolescence equaled $429,255 at December 31, 2015 and September 30, 2015. The Company provides for a valuation reserve for certain inventory that is deemed to be obsolete, of excess quantity or otherwise impaired.

 

6
 

 

Note 4. Income Taxes

 

The Company accounts for income taxes under FASB ASC 740-10. Deferred tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which are anticipated to be in effect when these differences reverse. The deferred tax provision is the result of the net change in the deferred tax assets and liabilities. A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts expected to be realized. The Company has provided a full valuation allowance against its deferred tax assets.

 

The Company adopted FASB ASC 740-10. FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax position taken or expected to be taken on a tax return. Additionally, it provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company determined it has no uncertain tax positions and therefore no amounts are recorded.

 

Note 5. Legal Matters

 

None.

 

Note 6. Fair Value of Financial Instruments

 

The carrying values of the Company cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments.

 

The Company currently does not trade in or utilize derivative financial instruments.

 

Note 7. Significant Customers

 

Sales to one customer represented approximately 30% of total sales for the three months ended December 31, 2015 compared to approximately 28% of total sales for the three months ended December 31, 2014. This one customer has represented approximately 33%, 25% and 14% of total sales for the fiscal years ending September 30, 2015, 2014 and 2013, respectively. A loss of this customer or programs related to this customer could materially impact the Company.

 

Note 8. Notes Payable

 

On July 2, 2013, Microwave Filter Company, Inc. (the “Company”) entered into a Ten Year Term Loan with KeyBank National Association in the amount of Five Hundred Thousand and No/100 Dollars ($500,000.00). The amount of all advances outstanding together with accrued interest thereon shall be due and payable on July 2, 2023 (“Maturity”). The Company shall pay interest on the outstanding principal balance of this Note at the rate per annum equal to 4.5%. The net proceeds from the Term Loan will be available to provide working capital as needed. The total amount outstanding as of December 31, 2015 and September 30, 2015 was $399,211 and $410,178 respectively. Interest accrued as of December 31, 2015 and September 30, 2015 was $1,447 and $1,436 respectively.

 

The Company has secured this Note by: (a) a Mortgage, Assignment of Rents, Security Agreement and Fixture Filing which creates a 1st lien on real property situated in the Town of Dewitt, County of Onondaga, and State of New York and known as 6743 Kinne Street, East Syracuse, New York; (b) a General Assignment of Rents and Leases; (c) an Environmental Compliance and Indemnification; and (d) such other security as may now or hereafter be given to Lender as collateral for the loan.

 

7
 

 

Note 9. Earnings Per Share

 

The Company presents basic earnings per share (“EPS”), computed based on the weighted average number of common shares outstanding for the period, and when applicable diluted EPS, which gives the effect to all dilutive potential shares outstanding (i.e. options) during the period after restatement for any stock dividends. There were no dividends declared during the quarters ending December 31, 2015 and 2014. Income (loss) used in the EPS calculation is net income (loss) for each period. There were no dilutive potential shares outstanding for the periods ending December 31, 2015 and 2014.

 

Note 10. Recent Accounting Pronouncements

 

Management has reviewed the most recent accounting pronouncements issued by the various authoritative standard setting bodies:

 

Update 2015-11- Inventory (Topic 330): Simplifying the Measurement of Inventory, is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Under the new standard, businesses that use the first-in, first-out (FIFO) or average cost method are required to measure inventory at the lower of cost or net realizable value (“NRV”), as defined, instead of at the lower of cost or market value. Management feels the updated standard, to be adopted on a prospective basis, would not represent a material impact to the Company’s financial statements.

 

Update 2015-17 - Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes addresses the requirement to reclassify all current deferred income tax assets and liabilities on the balance sheet as non-current assets and liabilities, and is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. As explained in Note 4, the Company has provided a full valuation allowance against its deferred tax assets, and thus there will be no impact from the adoption of this updated standard in the current year or on the balance sheet of any of the periods presented.

 

Update 2015-14- Revenue from Contracts with Customers (Topic 606): affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is applicable to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Management plans to evaluate the applicability and impact of the adoption of this standards update over the coming year.

 

8
 

 

MICROWAVE FILTER COMPANY, INC.

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Business Overview

 

Microwave Filter Company, Inc. operates primarily in the United States and principally in one industry. The Company extends credit to business customers based upon ongoing credit evaluations. Microwave Filter Company, Inc. (MFC) designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations. Markets served include cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial communications and defense electronics.

 

Critical Accounting Policies

 

The Company’s condensed consolidated financial statements are based on the application of United States generally accepted accounting principles (GAAP). GAAP requires the use of estimates, assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. The Company believes its use of estimates and underlying accounting assumptions adhere to GAAP and are consistently applied. Valuations based on estimates are reviewed for reasonableness and adequacy on a consistent basis throughout the Company. Primary areas where financial information of the Company is subject to the use of estimates, assumptions and the application of judgment include revenues, receivables, inventories, and taxes. Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2015 describes the significant accounting policies used in preparation of the condensed consolidated financial statements. The most significant areas involving management judgments and estimates are described below and are considered by management to be critical to understanding the financial condition and results of operations of the Company.

 

Revenues from product sales are recorded as the products are shipped and title and risk of loss have passed to the customer, provided that no significant vendor or post-contract support obligations remain and the collection of the related receivable is probable. Billings in advance of the Company’s performance of such work are reflected as customer deposits in the accompanying condensed consolidated balance sheet.

 

Allowances for doubtful accounts are based on estimates of losses related to customer receivable balances. The establishment of reserves requires the use of judgment and assumptions regarding the potential for losses on receivable balances.

 

The Company’s inventories are stated at the lower of cost determined on the first-in, first-out method or market. The Company uses certain estimates and judgments and considers several factors including product demand and changes in technology to provide for excess and obsolescence reserves to properly value inventory.

 

The Company established a warranty reserve which provides for the estimated cost of product returns based upon historical experience and any known conditions or circumstances. Our warranty obligation is affected by product that does not meet specifications and performance requirements and any related costs of addressing such matters.

 

The Company accounts for income taxes under FASB ASC 740-10. Deferred tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which are anticipated to be in effect when these differences reverse. The deferred tax provision is the result of the net change in the deferred tax assets and liabilities. A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts expected to be realized. The Company has provided a full valuation allowance against its deferred tax assets.

 

9
 

 

RESULTS OF OPERATIONS

 

THREE MONTHS ENDED DECEMBER 31, 2015 vs. THREE MONTHS ENDED DECEMBER 31, 2014

 

The following table sets forth the Company’s net sales by major product group for the three months ended December 31, 2015 and 2014.

 

Product group  Fiscal 2016   Fiscal 2015 
Microwave Filter (MFC):          
RF/Microwave  $329,696   $384,632 
Satellite   250,443    307,206 
Cable TV   95,042    129,112 
Broadcast TV   90,222    26,321 
Niagara Scientific (NSI):   2,144    2,656 
Total  $767,547   $849,927 
           
Sales backlog at December 31  $880,669   $352,787 

 

Net sales for the three months ended December 31, 2015 equaled $767,547, a decrease of $82,380 or 9.7%, when compared to net sales of $849,927 for the three months ended December 31, 2014. Management attributes the decrease in sales to weak economic conditions.

 

MFC’s RF/Microwave product sales decreased $54,936 or 14.3% to $329,696 for the three months ended December 31, 2015 when compared to RF/Microwave product sales of $384,632 during the same period last year. MFC’s RF/Microwave products are sold primarily to Original Equipment Manufacturers that serve the mobile radio, commercial communications and defense electronics markets. Management attributes the decrease in sales to the sequester of funds imposed upon the Department of Defense. The Company continues to invest in production engineering and infrastructure development to penetrate OEM market segments as they become popular. MFC is concentrating its technical resources and product development efforts toward potential high volume customers as part of a concentrated effort to provide substantial long-term growth. Sales to one OEM customer represented approximately 30% of total sales for the three months ended December 31, 2015 and approximately 28% of total sales for the three months ended December 31, 2014.

 

MFC’s Satellite product sales decreased $56,763 or 18.5% to $250,443 for the three months ended December 31, 2015 when compared to Satellite product sales of $307,206 during the same period last year. The decrease can be attributed to a decrease in demand for the Company’s filters which suppress strong out-of-band interference caused by military and civilian radar systems and other sources. Management attributes a portion of this decrease to the strong dollar since a number of these products are shipped overseas. Although economic conditions do impact sales, management expects demand for these types of filters to continue with the proliferation of earth stations world wide and increased sources of interference.

 

MFC’s Cable TV product sales decreased $34,070 or 26.4% to $95,042 for the three months ended December 31, 2015 when compared to Cable TV product sales of $129,112 during the same period last year. Management continues to project a decrease in demand for Cable TV products due to the shift from analog to digital television. Due to the inherent nature of digital modulation versus analog modulation, fewer filters will be required. The Company has developed filters for digital television and there will still be requirements for analog filters for limited applications in commercial and private cable systems.

 

10
 

 

MFC’s Broadcast TV/Wireless Cable product sales increased $63,901 to $90,222 for the three months ended December 31, 2015 when compared to sales of $26,321 during the same period last year. The increase in sales can primarily be attributed to the development of wireless diplexers which were sold to one customer.

 

MFC’s sales order backlog equaled $880,669 at December 31, 2015 compared to sales order backlog of $352,787 at December 31, 2014. The increase can primarily be attributed to orders received from one OEM customer. However, backlog is not necessarily indicative of future sales. Accordingly, the Company does not believe that its backlog as of any particular date is representative of actual sales for any succeeding period. The total sales order backlog at December 31, 2015 is scheduled to ship by September 30, 2016.

 

Gross profit for the three months ended December 31, 2015 equaled $258,805, a decrease of $51,309 or 16.5%, when compared to gross profit of $310,114 for the three months ended December 31, 2014. As a percentage of sales, gross profit equaled 33.7% for the three months ended December 31, 2015 compared to 36.5% for the three months ended December 31, 2014. The decreases in gross profit can primarily be attributed to the lower sales volume this year when compared to the same period last year providing a lower base to absorb expenses.

 

Selling, general and administrative (SGA) expenses for the three months ended December 31, 2015 equaled $359,164, a decrease of $41,024 or 10.3%, when compared to SGA expenses of $400,188 for the three months ended December 31, 2014. The decrease can primarily be attributed to lower payroll and payroll related expenses. The Company has been participating in the New York State Shared Work Program which allows employers to reduce the hours of all or a particular group of employees. The employees whose hours are reduced can receive partial unemployment insurance benefits to supplement their lost wages or elect to use accrued vacation. As a percentage of sales, SGA expenses decreased to 46.8% for the three months ended December 31, 2015 compared to 47.1% for the three months ended December 31, 2014 primarily due to the lower expenses this year when compared to the same period last year.

 

The Company recorded a loss from operations of $100,359 for the three months ended December 31, 2015 compared to a loss from operations of $90,074 for the three months ended December 31, 2014. The higher loss can primarily be attributed to the lower sales volume partially offset by the lower SGA expenses this year when compared to the same period last year.

 

Other income (expense) was an expense of $2,992 for the three months ended December 31, 2015 compared to an expense of $3,952 for the for the three months ended December 31, 2014 primarily due to interest expense of $4,636 for the three months ended December 31, 2015 and interest expense of $5,129 for the three months ended December 31, 2014.

 

The (benefit) provision for income taxes equaled $0 for the three months ended December 31, 2015 and December 31, 2014. We have not recognized any (benefit) provision for income taxes. Any benefit for losses has been subject to a valuation allowance since the realization of the deferred tax benefit is not considered more likely than not. As required by FASB ASC 740 (Prior Authoritative Literature: SFAS 109, Accounting for Income Taxes), the Company has evaluated the positive and negative evidence bearing upon the realization of its deferred tax assets. The Company has determined that, at this time, it is more likely than not that the Company will not realize all of the benefits of federal and state deferred tax assets, and, as a result, a valuation allowance was established.

 

11
 

 

Off-Balance Sheet Arrangements

 

At December 31, 2015 and 2014, the Company did not have any unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which might have been established for the purpose of facilitating off-balance sheet arrangements.

 

LIQUIDITY and CAPITAL RESOURCES

 

MFC defines liquidity as the ability to generate adequate funds to meet its operating and capital needs. The Company’s primary source of liquidity has been funds provided by operations.

 

   December 31, 2015   September 30, 2015 
         
Cash & cash equivalents  $957,836   $896,667 
Working capital  $1,342,999   $1,434,405 
Current ratio   5.34 to 1    5.14 to 1 
Long-term debt  $354,175   $365,650 

 

Cash and cash equivalents increased $61,169 to $957,836 at December 31, 2015 when compared to cash and cash equivalents of $896,667 at September 30, 2015. The increase was a result of $72,226 in net cash provided by operating activities, $10,967 in net cash used for repayment of a note payable and $90 in net cash used to purchase treasury stock.

 

Net cash provided by operating activities can fluctuate between periods as a result of differences in net income, the timing of the collection of accounts receivable, purchase of inventory and payment of accounts payable. The $72,226 in net cash provided by operating activities can primarily be attributed to the net loss of $103,351 offset by the collection of accounts receivable of $184,725.

 

On July 2, 2013, Microwave Filter Company, Inc. (the “Company”) entered into a Ten Year Term Loan with KeyBank National Association in the amount of Five Hundred Thousand and No/100 Dollars ($500,000.00). The amount of all advances outstanding together with accrued interest thereon shall be due and payable on July 2, 2023 (“Maturity”). The Company shall pay interest on the outstanding principal balance of this Note at the rate per annum equal to 4.5%. The net proceeds from the Term Loan will be available to provide working capital as needed.

 

Management believes that its working capital requirements for at least the next twelve months will be met by its existing cash balances, future cash flows from operations and its current credit arrangements.

 

12
 

 

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

 

In an effort to provide investors a balanced view of the Company’s current condition and future growth opportunities, this Quarterly Report on Form 10-Q includes comments by the Company’s management about future performance. These statements which are not historical information are “forward-looking statements” pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These, and other forward-looking statements, are subject to business and economic risks and uncertainties that could cause actual results to differ materially from those discussed. These risks and uncertainties include, but are not limited to: risks associated with demand for and market acceptance of existing and newly developed products as to which the Company has made significant investments; general economic and industry conditions; slower than anticipated penetration into the satellite communications, mobile radio and commercial and defense electronics markets; competitive products and pricing pressures; increased pricing pressure from our customers; risks relating to governmental regulatory actions in broadcast, communications and defense programs; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company’s Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. You are encouraged to review Microwave Filter Company’s 2015 Annual Report and Form 10-K for the fiscal year ended September 30, 2015 and other Securities and Exchange Commission filings. Forward looking statements may be made directly in this document or “incorporated by reference” from other documents. You can find many of these statements by looking for words like “believes,” “expects,” “anticipates,” “estimates,” or similar expressions.

 

13
 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company” we are not required to provide information required by this item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

 

Management’s responsibility includes establishing and maintaining adequate internal control over financial reporting. The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

 

There have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

14
 

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 1A. Risk Factors

 

Not applicable.

 

Item 2. Changes in Securities

 

The Company purchased 171 shares of common stock at an average price of $.53 per share into treasury during the three months ended December 31, 2015.

 

Item 3. Defaults Upon Senior Securities

 

The Company has no senior securities.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

 

Item 6. Exhibits

 

a. Exhibits

 

31.1 Section 13a-14(a)/15d-14(a) Certification of Paul W. Mears

 

31.2 Section 13a-14(a)/15d-14(a) Certification of Richard L. Jones

 

32.1 Section 1350 Certification of Paul W. Mears and Richard L. Jones

 

15
 

 

Signatures

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  MICROWAVE FILTER COMPANY, INC.
   
February 12, 2016 /s/ Paul W. Mears
(Date) Paul W. Mears
  Chief Executive Officer
   
February 12, 2016 /s/ Richard L. Jones
(Date) Richard L. Jones
  Chief Financial Officer

 

16
 



 

Exhibit 31.1

 

RULE 13a-14(a) CERTIFICATION

 

I, Paul W. Mears, certify that:

 

1. I have reviewed this report Quarterly Report on Form 10-Q of Microwave Filter Company, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and we have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: February 12, 2016 /s/ Paul W. Mears
  Paul W. Mears
  Chief Executive Officer

 

 
 



 

Exhibit 31.2

 

RULE 13a-14(a) CERTIFICATION

 

I, Richard L. Jones, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Microwave Filter Company, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and we have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: February 12, 2016 /s/ Richard L. Jones
  Richard L. Jones
  Chief Financial Officer

 

 
 


 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Microwave Filter Company, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Paul W. Mears, Chief Executive Officer, and Richard L. Jones, Chief Financial Officer, of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: February 12, 2016 /s/ Paul W. Mears
  Paul W. Mears
  Chief Executive Officer
   
Dated: February 12, 2016 /s/ Richard L. Jones
  Richard L. Jones
  Chief Financial Officer

 

 
 



v3.3.1.900
Document and Entity Information - shares
 3 Months Ended
Dec. 31, 2015
Feb. 01, 2016
Document And Entity Information    
Entity Registrant Name MICROWAVE FILTER CO INC /NY/  
Entity Central Index Key 0000716688  
Document Type 10-Q  
Document Period End Date Dec. 31, 2015  
Amendment Flag false  
Current Fiscal Year End Date --09-30  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   2,581,295
Trading Symbol MFCO  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2016  


v3.3.1.900
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Dec. 31, 2015
Sep. 30, 2015
Current Assets:    
Cash and cash equivalents $ 957,836 $ 896,667
Accounts receivable-trade, net of allowance for doubtful accounts of $4,000 and $4,000 208,163 392,888
Inventories, net 430,063 447,507
Prepaid expenses and other current assets 56,267 44,099
Total current assets 1,652,329 1,781,161
Property, plant and equipment, net 411,565 435,075
Total assets 2,063,894 2,216,236
Current liabilities:    
Accounts payable 59,176 74,610
Customer deposits 18,619 7,391
Accrued payroll and related expenses 32,562 56,371
Accrued compensated absences 134,413 139,315
Notes payable - short term 45,036 44,528
Other current liabilities 19,524 24,541
Total current liabilities 309,330 346,756
Notes payable -long term 354,175 365,650
Total other liabilities 354,175 365,650
Total liabilities 663,505 712,406
Stockholders' Equity:    
Common stock, $.10 par value Authorized 5,000,000 shares, Issued 4,324,140 shares in 2016 and 2015, Outstanding 2,581,295 shares in 2016 and 2,581,466 in 2015 432,414 432,414
Additional paid-in capital 3,248,706 3,248,706
Accumulated deficit (586,926) (483,575)
Common stock in treasury, at cost 1,742,845 shares in 2016 and 1,742,674 shares in 2015 (1,693,805) (1,693,715)
Total stockholders' equity 1,400,389 1,503,830
Total liabilities and stockholders' equity $ 2,063,894 $ 2,216,236


v3.3.1.900
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
Dec. 31, 2015
Sep. 30, 2015
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 4,000 $ 4,000
Common stock, par value $ 0.10 $ 0.10
Common stock, shares authorized 5,000,000 5,000,000
Common stock, shares, issued 4,324,140 4,324,140
Common stock, shares, outstanding 2,581,295 2,581,466
Treasury stock, shares 1,742,845 1,742,674


v3.3.1.900
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Income Statement [Abstract]    
Net sales $ 767,547 $ 849,927
Cost of goods sold 508,742 539,813
Gross profit 258,805 310,114
Selling, general and administrative expenses 359,164 400,188
Loss from operations (100,359) (90,074)
Other income (expense), net (2,992) (3,952)
Loss before income taxes (103,351) (94,026)
(Benefit) provision for income taxes 0 0
Net loss $ (103,351) $ (94,026)
Net Loss Per Common Share    
Basic and diluted loss per share $ (0.04) $ (0.04)
Weighted Average Common Shares Outstanding    
Shares used in computing net loss per share: 2,581,434 2,583,025


v3.3.1.900
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:    
Net loss $ (103,351) $ (94,026)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 23,510 26,769
Change in operating assets and liabilities:    
Accounts receivable-trade 184,725 15,936
Inventories 17,444 6,757
Prepaid expenses and other assets (12,168) 18,891
Accounts payable and customer deposits (4,206) (4,765)
Accrued payroll and related expenses and compensated absences (28,711) 8,097
Other current liabilities (5,017) (4,292)
Net cash (used in) provided by operating activities 72,226 (26,633)
Cash flows from investing activities:    
Property, plant and equipment purchased 0 (38,599)
Net cash used in investing activities 0 (38,599)
Cash flows from financing activities:    
Repayment of note payable (10,967) (10,480)
Purchase of treasury stock (90) (1,150)
Net cash used in financing activities (11,057) (11,630)
Increase (decrease) in cash and cash equivalents 61,169 (76,862)
Cash and cash equivalents at beginning of period 896,667 1,081,567
Cash and cash equivalents at end of period 957,836 1,004,705
Supplemental Schedule of Cash Flow Information:    
Interest $ 4,624 $ 5,111


v3.3.1.900
Summary of Significant Accounting Policies
 3 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 1. Summary of Significant Accounting Policies

 

The following condensed balance sheet as of September 30, 2015, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the three month period ended December 31, 2015 are not necessarily indicative of the results that may be expected for the year ended September 30, 2016. For further information, refer to the condensed consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10K for the year ended September 30, 2015.


v3.3.1.900
Industry Segment Data
 3 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Industry Segment Data

Note 2. Industry Segment Data

 

The Company’s primary business segment involves the operations of Microwave Filter Company, Inc. (MFC) which designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations. Markets served include cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial communications and defense electronics.


v3.3.1.900
Inventories
 3 Months Ended
Dec. 31, 2015
Inventory Disclosure [Abstract]  
Inventories

Note 3. Inventories

 

Inventories are stated at the lower of cost determined on the first-in, first-out method or market.

 

Inventories net of reserve for obsolescence consisted of the following:

 

    December 31, 2015     September 30, 2015  
             
Raw materials and stock parts   $ 367,363     $ 367,344  
Work-in-process     18,803       19,884  
Finished goods     43,897       60,279  
                 
    $ 430,063     $ 447,507  

 

The Company’s reserve for obsolescence equaled $429,255 at December 31, 2015 and September 30, 2015. The Company provides for a valuation reserve for certain inventory that is deemed to be obsolete, of excess quantity or otherwise impaired.


v3.3.1.900
Income Taxes
 3 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

Note 4. Income Taxes

 

The Company accounts for income taxes under FASB ASC 740-10. Deferred tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which are anticipated to be in effect when these differences reverse. The deferred tax provision is the result of the net change in the deferred tax assets and liabilities. A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts expected to be realized. The Company has provided a full valuation allowance against its deferred tax assets.

 

The Company adopted FASB ASC 740-10. FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax position taken or expected to be taken on a tax return. Additionally, it provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company determined it has no uncertain tax positions and therefore no amounts are recorded.


v3.3.1.900
Legal Matters
 3 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Legal Matters

Note 5. Legal Matters

 

None.


v3.3.1.900
Fair Value of Financial Instruments
 3 Months Ended
Dec. 31, 2015
Investments, All Other Investments [Abstract]  
Fair Value of Financial Instruments

 

Note 6. Fair Value of Financial Instruments

 

The carrying values of the Company cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments.

 

The Company currently does not trade in or utilize derivative financial instruments.


v3.3.1.900
Significant Customers
 3 Months Ended
Dec. 31, 2015
Risks and Uncertainties [Abstract]  
Significant Customers

Note 7. Significant Customers

 

Sales to one customer represented approximately 30% of total sales for the three months ended December 31, 2015 compared to approximately 28% of total sales for the three months ended December 31, 2014. This one customer has represented approximately 33%, 25% and 14% of total sales for the fiscal years ending September 30, 2015, 2014 and 2013, respectively. A loss of this customer or programs related to this customer could materially impact the Company.


v3.3.1.900
Notes Payable
 3 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Notes Payable

Note 8. Notes Payable

 

On July 2, 2013, Microwave Filter Company, Inc. (the “Company”) entered into a Ten Year Term Loan with KeyBank National Association in the amount of Five Hundred Thousand and No/100 Dollars ($500,000.00). The amount of all advances outstanding together with accrued interest thereon shall be due and payable on July 2, 2023 (“Maturity”). The Company shall pay interest on the outstanding principal balance of this Note at the rate per annum equal to 4.5%. The net proceeds from the Term Loan will be available to provide working capital as needed. The total amount outstanding as of December 31, 2015 and September 30, 2015 was $399,211 and $410,178 respectively. Interest accrued as of December 31, 2015 and September 30, 2015 was $1,447 and $1,436 respectively.

 

The Company has secured this Note by: (a) a Mortgage, Assignment of Rents, Security Agreement and Fixture Filing which creates a 1st lien on real property situated in the Town of Dewitt, County of Onondaga, and State of New York and known as 6743 Kinne Street, East Syracuse, New York; (b) a General Assignment of Rents and Leases; (c) an Environmental Compliance and Indemnification; and (d) such other security as may now or hereafter be given to Lender as collateral for the loan.


v3.3.1.900
Earnings Per Share
 3 Months Ended
Dec. 31, 2015
Net Loss Per Common Share  
Earnings Per Share

Note 9. Earnings Per Share

 

The Company presents basic earnings per share (“EPS”), computed based on the weighted average number of common shares outstanding for the period, and when applicable diluted EPS, which gives the effect to all dilutive potential shares outstanding (i.e. options) during the period after restatement for any stock dividends. There were no dividends declared during the quarters ending December 31, 2015 and 2014. Income (loss) used in the EPS calculation is net income (loss) for each period. There were no dilutive potential shares outstanding for the periods ending December 31, 2015 and 2014.


v3.3.1.900
Recent Accounting Pronouncements
 3 Months Ended
Dec. 31, 2015
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements

Note 10. Recent Accounting Pronouncements

 

Management has reviewed the most recent accounting pronouncements issued by the various authoritative standard setting bodies:

 

Update 2015-11- Inventory (Topic 330): Simplifying the Measurement of Inventory, is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Under the new standard, businesses that use the first-in, first-out (FIFO) or average cost method are required to measure inventory at the lower of cost or net realizable value (“NRV”), as defined, instead of at the lower of cost or market value. Management feels the updated standard, to be adopted on a prospective basis, would not represent a material impact to the Company’s financial statements.

 

Update 2015-17 - Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes addresses the requirement to reclassify all current deferred income tax assets and liabilities on the balance sheet as non-current assets and liabilities, and is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. As explained in Note 4, the Company has provided a full valuation allowance against its deferred tax assets, and thus there will be no impact from the adoption of this updated standard in the current year or on the balance sheet of any of the periods presented.

 

Update 2015-14- Revenue from Contracts with Customers (Topic 606): affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is applicable to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Management plans to evaluate the applicability and impact of the adoption of this standards update over the coming year.


v3.3.1.900
Inventories (Tables)
 3 Months Ended
Dec. 31, 2015
Inventory Disclosure [Abstract]  
Schedule of Inventories Net of Reserve for Obsolescence

Inventories net of reserve for obsolescence consisted of the following:

 

    December 31, 2015     September 30, 2015  
             
Raw materials and stock parts   $ 367,363     $ 367,344  
Work-in-process     18,803       19,884  
Finished goods     43,897       60,279  
                 
    $ 430,063     $ 447,507  


v3.3.1.900
Inventories (Details Narrative) - USD ($)
Dec. 31, 2015
Sep. 30, 2015
Inventory Disclosure [Abstract]    
Reserve for obsolescence $ 429,255 $ 429,255


v3.3.1.900
Inventories - Schedule of Inventories Net of Reserve for Obsolescence (Details) - USD ($)
Dec. 31, 2015
Sep. 30, 2015
Inventory Disclosure [Abstract]    
Raw materials and stock parts $ 367,363 $ 367,344
Work-in-process 18,803 19,884
Finished goods 43,897 60,279
Inventory net $ 430,063 $ 447,507


v3.3.1.900
Significant Customers (Details Narrative)
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
One Customer [Member]          
Percentage of sales 30.00% 28.00% 33.00% 25.00% 14.00%


v3.3.1.900
Notes Payable (Details Narrative) - USD ($)
Jul. 02, 2013
Dec. 31, 2015
Sep. 30, 2015
Outstanding total amount   $ 399,211 $ 410,178
Interest accrued   $ 1,447 $ 1,436
Key Bank National Association [Member]      
Loan term 10 years    
Loan amount $ 500,000    
Loan maturity date Jul. 02, 2023    
Percentage of interest rate 4.50%    
Microwave Filter (PK) (USOTC:MFCO)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Microwave Filter (PK) Charts.
Microwave Filter (PK) (USOTC:MFCO)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Microwave Filter (PK) Charts.