Document And Entity Information
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Document And Entity Information (USD $)
12 Months Ended
Sep. 30, 2013
Nov. 14, 2013
Mar. 31, 2013
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2013    
Document Fiscal Year Focus 2013    
Document Fiscal Period Focus FY    
Entity Filer Category Smaller Reporting Company    
Entity Registrant Name MICROWAVE FILTER CO INC /NY/    
Entity Central Index Key 0000716688    
Current Fiscal Year End Date --09-30    
Entity Common Stock, Shares Outstanding   2,585,086  
Entity Public Float     $ 1,691,814
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
Sep. 30, 2013
Sep. 30, 2012
Assets    
Cash and cash equivalents $ 939,959 $ 1,023,017
Accounts receivable-trade, net of allowance for doubtful accounts of $26,000 and $26,000 201,163 263,385
Federal and state income tax recoverable 37,085 0
Inventories, net of obsolete inventory reserve of $400,664 and $408,340 566,500 529,075
Prepaid expenses and other current assets 98,973 111,342
Total current assets 1,843,680 1,926,819
Property, plant and equipment, net 580,750 672,525
Total assets 2,424,430 2,599,344
Liabilities and Stockholders' Equity    
Accounts payable 68,632 92,325
Customer deposits 16,362 30,563
Accrued payroll and related expenses 46,453 51,289
Accrued compensated absences 94,272 172,198
Notes Payable - Short Term 40,697 0
Other current liabilities 35,199 31,308
Total current liabilities 301,615 377,683
Notes Payable - Long Term 452,771 0
Total other liabilities 452,771 0
Total liabilities 754,386 377,683
Stockholders' Equity:    
Common stock, $.10 par value Authorized 5,000,000 shares, Issued 4,324,140 shares in 2013 and 2012, Outstanding 2,585,086 shares in 2013 and 2,585,321 in 2012 432,414 432,414
Additional paid-in capital 3,248,706 3,248,706
Retained earnings (319,460) 232,013
Common stock in treasury, at cost 1,739,054 shares in 2013 and 1,738,819 shares in 2012 (1,691,616) (1,691,472)
Total stockholders' equity 1,670,044 2,221,661
Total Liabilities and Stockholders' Equity $ 2,424,430 $ 2,599,344

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2013
Sep. 30, 2012
Consolidated Balance Sheets [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 26,000 $ 26,000
Inventories, obsolete inventory reserve $ 400,664 $ 408,340
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 2,585,086 2,585,321
Treasury stock, shares 1,739,054 1,738,819

Consolidated Statements Of Operations
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Consolidated Statements Of Operations (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Consolidated Statements Of Operations [Abstract]    
Net sales $ 2,872,491 $ 4,458,819
Cost of goods sold 1,935,792 2,801,385
Gross profit 936,699 1,657,434
Selling, general and administrative expenses 1,526,122 1,648,388
(Loss) income from operations (589,423) 9,046
Non-operating Income (Expense)    
Interest income 1,826 4,282
Interest expense (5,590) 0
Miscellaneous 4,629 23,891
(Loss) income before income taxes (588,558) 37,219
Benefit for income taxes (37,085) (38,582)
NET (LOSS) INCOME $ (551,473) $ 75,801
Net (Loss) Income Per Common Share    
Basic and Diluted Earnings (Loss) Per Common Share $ (0.21) $ 0.03
Shares used in computing net earnings (loss) per share:    
Basic and diluted 2,585,204 2,585,845

Consolidated Statements Of Stockholders' Equity
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Consolidated Statements Of Stockholders' Equity (USD $)
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Total
Balance at Sep. 30, 2011 $ 432,414 $ 3,248,706 $ 285,485 $ (1,690,677) $ 2,275,928
Balance, shares at Sep. 30, 2011 4,324,140     1,737,913  
Net (loss) income     75,801   75,801
Purchase of treasury stock, value       (795) (795)
Purchase of treasury stock, shares       906  
Cash dividend paid ($.05) per share     (129,273)   (129,273)
Balance at Sep. 30, 2012 432,414 3,248,706 232,013 (1,691,472) 2,221,661
Balance, shares at Sep. 30, 2012 4,324,140     1,738,819  
Net (loss) income     (551,473)   (551,473)
Purchase of treasury stock, value       (144) (144)
Purchase of treasury stock, shares       235  
Balance at Sep. 30, 2013 $ 432,414 $ 3,248,706 $ (319,460) $ (1,691,616) $ 1,670,044
Balance, shares at Sep. 30, 2013 4,324,140     1,739,054  

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:    
Net (loss) income $ (551,473) $ 75,801
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 166,120 157,691
Gain on sale of fixed assets 0 (20,000)
Inventory obsolescence provision (7,675) 15,637
Change in assets and liabilities:    
Accounts receivable-trade 62,222 88,669
Federal and state income tax recoverable (37,085) 24,828
Inventories (29,750) 22,549
Prepaid and other assets 12,369 (17,228)
Accounts payable and customer deposits (37,894) (124,533)
Accrued payroll, compensated absences and related expenses (82,762) (84,470)
Other current liabilities 3,891 (52,346)
Net cash (used in) provided by operating activities (502,037) 86,598
Cash flows from investing activities:    
Capital expenditures (74,345) (212,398)
Proceeds from sale of fixed assets 0 20,000
Net cash used in investing activities (74,345) (192,398)
Cash flows from financing activities:    
Proceeds from note payable 493,468 0
Purchase of treasury stock (144) (795)
Cash dividend paid 0 (129,273)
Net cash provided by (used in) financing activities 493,324 (130,068)
Net decrease in cash and cash equivalents (83,058) (235,868)
Cash and cash equivalents at beginning of year 1,023,017 1,258,885
Cash and cash equivalents at end of year 939,959 1,023,017
Supplemental disclosures of cash flows:    
Interest 3,862 0
Income taxes $ 0 $ 0

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
12 Months Ended
Sep. 30, 2013
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies


1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.  Nature of Business

  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.  Niagara Scientific, Inc.  (NSI), a wholly owned subsidiary, custom designs case packing machines to automatically pack products into shipping cases.  Customers are processors of food and other commodity products with a need to reduce labor cost with a modest investment and quick payback.  For the last three years, NSI's sales have consisted of spare parts orders.

b.  Basis of Consolidation

  The consolidated financial statements include the accounts of Microwave Filter Company, Inc.  (MFC) and its wholly-owned subsidiaries, Niagara Scientific, Inc.  (NSI) and Microwave Filter International, LTD.  (MFI) (dormant); located in Syracuse, New York.  All significant intercompany balances and transactions have been eliminated in consolidation.

c.  Revenue Recognition

  The Company recognizes revenue at the time products are shipped to customers and title and risk of loss have passed to the customer.  The Company is not required to install any of its products.  Payments received from customers in advance of products shipped are recorded as customer deposits until earned.

d.  Cash and Cash Equivalents

  The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company's cash is held at federally insured institutions and balances may periodically exceed insured limits.  The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with respect to cash.  The Company also routinely assesses the financial strength of its customers and, as a consequence, believes that its trade accounts receivable credit risk exposure is limited.

   

e.  Investments

  Investments generally consist of commercial paper, government backed obligations and other guaranteed commercial debt that have an original maturity of more than three months and a remaining maturity of less than one year. Investments are carried at cost which approximates market.  The Company's policy is to hold investments until maturity.  The Company's practice is to invest cash with financial institutions that have acceptable credit ratings.

f.  Trade Accounts Receivable and Allowance for Doubtful Accounts

  Trade accounts receivable are recorded at the invoiced amount and do not bear interest.  The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable.  The Company reviews its allowance for doubtful accounts monthly.  Past due balances over 90 days are reviewed individually for collectibility.  Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.  The Company does not have any off-balance-sheet credit exposure related to its customers.

 

g.  Inventories and Reserve for Obsolescence

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

  The Company records a reserve for obsolete or excess inventory.  The Company considers inventory quantities greater than a one-year supply based on current year activity as well as any additional specifically identified inventory to be excess.  The Company also provides for the total value of inventories that are determined to be obsolete based on criteria such as customer demand and changing technologies.

h.  Research and Development

  Costs in connection with research and development, which amount to $311,935 and $408,335 for the fiscal years 2013 and 2012, respectively, are charged to operations as incurred.  

i.  Property, Plant and Equipment

  Property, plant and equipment are recorded at cost.  Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets.  Buildings and building improvements are depreciated over an estimated service life of 20 to 30 years.  Machinery and equipment are depreciated over an estimated useful life of 3 to 10 years.  Office equipment and fixtures are depreciated over an estimated useful life of 3 to 10 years.  At the time of sale or retirement, the cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is recognized in income.

   

j.  Income Taxes

  The Company accounts for income taxes under FASB ASC 740-10 (Prior Authoritative Literature: Statement of Financial Accounting Standards (SFAS) No.  109, Accounting for Income Taxes).  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 (Prior Authoritative Literature: FASB Interpretation No.  48, Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No.  109 (FIN 48) as of October 1, 2007.  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. 

K.  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.  Income (loss) used in the EPS calculation is net income (loss) for each year. There were no dilutive potential shares outstanding for the years ended September 30, 2013 and 2012.

l.  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.

 

m.  Miscellaneous Non-operating Income

  Miscellaneous non-operating income generally consists of sales of scrap material, stock transfer fees, the forfeiture of non-refundable deposits and other incidental items.

n.  Use of Estimates

  The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.  Estimates also affect the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

   

o.  Warranty Costs

  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.  Warranty costs were approximately $8,500 and $7,000 for the fiscal years ended September 30, 2013 and 2012, respectively.

p.  Impairment of Long-Lived Assets

  The carrying values of long-lived assets other than goodwill are generally evaluated for impairment only if events or changes in facts and circumstances indicate that carrying values may not be recoverable.  Any impairment determined would be recorded in the current period and would be measured by comparing the fair value of the related asset to its carrying value.  Fair value is generally determined by identifying estimated undiscounted cash flows to be generated by those assets.  No impairments have been recorded for the fiscal years ended September 30, 2013 and 2012.

q.  New Accounting Pronouncements

  None applicable.


Summary Of Significant Accounting Policies (Policy)
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Summary Of Significant Accounting Policies (Policy)
12 Months Ended
Sep. 30, 2013
Summary Of Significant Accounting Policies [Abstract]  
Nature Of Business

a.  Nature of Business

  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.  Niagara Scientific, Inc.  (NSI), a wholly owned subsidiary, custom designs case packing machines to automatically pack products into shipping cases.  Customers are processors of food and other commodity products with a need to reduce labor cost with a modest investment and quick payback.  For the last three years, NSI's sales have consisted of spare parts orders.

Basis Of Consolidation

b.  Basis of Consolidation

  The consolidated financial statements include the accounts of Microwave Filter Company, Inc.  (MFC) and its wholly-owned subsidiaries, Niagara Scientific, Inc.  (NSI) and Microwave Filter International, LTD.  (MFI) (dormant); located in Syracuse, New York.  All significant intercompany balances and transactions have been eliminated in consolidation.

Revenue Recognition

c.  Revenue Recognition

  The Company recognizes revenue at the time products are shipped to customers and title and risk of loss have passed to the customer.  The Company is not required to install any of its products.  Payments received from customers in advance of products shipped are recorded as customer deposits until earned.

Cash And Cash Equivalents

d.  Cash and Cash Equivalents

  The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company's cash is held at federally insured institutions and balances may periodically exceed insured limits.  The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with respect to cash.  The Company also routinely assesses the financial strength of its customers and, as a consequence, believes that its trade accounts receivable credit risk exposure is limited.

Investments

e.  Investments

  Investments generally consist of commercial paper, government backed obligations and other guaranteed commercial debt that have an original maturity of more than three months and a remaining maturity of less than one year. Investments are carried at cost which approximates market.  The Company's policy is to hold investments until maturity.  The Company's practice is to invest cash with financial institutions that have acceptable credit ratings.

Trade Accounts Receivable And Allowance For Doubtful Accounts f.  Trade Accounts Receivable and Allowance for Doubtful Accounts  Trade accounts receivable are recorded at the invoiced amount and do not bear interest.  The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable.  The Company reviews its allowance for doubtful accounts monthly.  Past due balances over 90 days are reviewed individually for collectibility.  Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.  The Company does not have any off-balance-sheet credit exposure related to its customers.
Inventories And Reserve For Obsolescence

 

g.  Inventories and Reserve for Obsolescence

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

  The Company records a reserve for obsolete or excess inventory.  The Company considers inventory quantities greater than a one-year supply based on current year activity as well as any additional specifically identified inventory to be excess.  The Company also provides for the total value of inventories that are determined to be obsolete based on criteria such as customer demand and changing technologies.

Research And Development

h.  Research and Development

  Costs in connection with research and development, which amount to $311,935 and $408,335 for the fiscal years 2013 and 2012, respectively, are charged to operations as incurred.  

Property, Plant And Equipment

i.  Property, Plant and Equipment

  Property, plant and equipment are recorded at cost.  Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets.  Buildings and building improvements are depreciated over an estimated service life of 20 to 30 years.  Machinery and equipment are depreciated over an estimated useful life of 3 to 10 years.  Office equipment and fixtures are depreciated over an estimated useful life of 3 to 10 years.  At the time of sale or retirement, the cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is recognized in income.

Income Taxes

j.  Income Taxes

  The Company accounts for income taxes under FASB ASC 740-10 (Prior Authoritative Literature: Statement of Financial Accounting Standards (SFAS) No.  109, Accounting for Income Taxes).  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 (Prior Authoritative Literature: FASB Interpretation No.  48, Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No.  109 (FIN 48) as of October 1, 2007.  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. 

Earnings Per Share

K.  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.  Income (loss) used in the EPS calculation is net income (loss) for each year. There were no dilutive potential shares outstanding for the years ended September 30, 2013 and 2012.

Fair Value Of Financial Instruments

l.  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.

Miscellaneous Non-Operating Income

m.  Miscellaneous Non-operating Income

  Miscellaneous non-operating income generally consists of sales of scrap material, stock transfer fees, the forfeiture of non-refundable deposits and other incidental items.

Use Of Estimates

n.  Use of Estimates

  The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.  Estimates also affect the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Warranty Costs

o.  Warranty Costs

  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.  Warranty costs were approximately $8,500 and $7,000 for the fiscal years ended September 30, 2013 and 2012, respectively.

Impairment Of Long-Lived Assets

p.  Impairment of Long-Lived Assets

  The carrying values of long-lived assets other than goodwill are generally evaluated for impairment only if events or changes in facts and circumstances indicate that carrying values may not be recoverable.  Any impairment determined would be recorded in the current period and would be measured by comparing the fair value of the related asset to its carrying value.  Fair value is generally determined by identifying estimated undiscounted cash flows to be generated by those assets.  No impairments have been recorded for the fiscal years ended September 30, 2013 and 2012.

New Accounting Pronouncements

q.  New Accounting Pronouncements

  None applicable.


Summary Of Significant Accounting Policies (Details)
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Summary Of Significant Accounting Policies (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Property, Plant and Equipment [Line Items]    
Research and development costs $ 311,935 $ 408,335
Dilutive potential shares outstanding 0 0
Warranty costs 8,500 7,000
Impairments of long-lived assets $ 0 $ 0
Minimum [Member]
   
Property, Plant and Equipment [Line Items]    
Original maturity of investments 3 months  
Period for inventory quantities to be identified as excess 1 year  
Maximum [Member]
   
Property, Plant and Equipment [Line Items]    
Remaining maturity of investments 1 year  
Buildings And Building Improvements [Member] | Minimum [Member]
   
Property, Plant and Equipment [Line Items]    
Estimated useful life 20 years  
Buildings And Building Improvements [Member] | Maximum [Member]
   
Property, Plant and Equipment [Line Items]    
Estimated useful life 30 years  
Machinery And Equipment [Member] | Minimum [Member]
   
Property, Plant and Equipment [Line Items]    
Estimated useful life 3 years  
Machinery And Equipment [Member] | Maximum [Member]
   
Property, Plant and Equipment [Line Items]    
Estimated useful life 10 years  
Office Equipment And Fixtures [Member] | Minimum [Member]
   
Property, Plant and Equipment [Line Items]    
Estimated useful life 3 years  
Office Equipment And Fixtures [Member] | Maximum [Member]
   
Property, Plant and Equipment [Line Items]    
Estimated useful life 10 years  
Niagara Scientific, Inc. [Member]
   
Property, Plant and Equipment [Line Items]    
Period that sales has consisted of spare parts orders 3 years  

Inventories
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Inventories
12 Months Ended
Sep. 30, 2013
Inventories [Abstract]  
Inventories

2.  INVENTORIES

Inventories net of provision for obsolescence consisted of the following:

 

 

 

 

 

 

 

 

 

 

September 30

 

 

 

2013

 

 

2012

 

   

 

 

 

 

 

 

Raw materials and stock parts  

$

432,871 

 

$

455,000 

 

Work-in-process  

   

24,137 

 

   

13,554 

 

Finished goods  

   

109,492 

 

   

60,521 

 

   

 

 

 

 

 

 

   

$

566,500 

 

$

529,075 

 

                                          
  The Company's reserve for obsolescence equaled $400,664 at September 30, 2013 and $408,340 at September 30, 2012.


Inventories (Tables)
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Inventories (Tables)
12 Months Ended
Sep. 30, 2013
Inventories [Abstract]  
Schedule Of Inventories Net Of Provision For Obsolescence

 

 

 

 

 

 

 

 

 

September 30

 

 

 

2013

 

 

2012

 

   

 

 

 

 

 

 

Raw materials and stock parts  

$

432,871 

 

$

455,000 

 

Work-in-process  

   

24,137 

 

   

13,554 

 

Finished goods  

   

109,492 

 

   

60,521 

 

   

 

 

 

 

 

 

   

$

566,500 

 

$

529,075 

 

 


Inventories (Details)
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Inventories (Details) (USD $)
Sep. 30, 2013
Sep. 30, 2012
Inventories [Abstract]    
Raw materials and stock parts $ 432,871 $ 455,000
Work-in-process 24,137 13,554
Finished goods 109,492 60,521
Inventories, net 566,500 529,075
Reserve for obsolescence $ 400,664 $ 408,340

Property, Plant And Equipment
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Property, Plant And Equipment
12 Months Ended
Sep. 30, 2013
Property, Plant And Equipment [Abstract]  
Property, Plant And Equipment

3.  PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following: 

 

 

 

 

 

 

 

 

 

September 30

 

 

   

2013

 

   

2012

 

   

   

   

 

   

   

 

Land

$

143,000 

 

$

143,000 

 

Building and improvements

   

1,894,052 

 

   

1,865,502 

 

Machinery and equipment

   

3,414,342 

 

   

3,407,157 

 

Office equipment and fixtures

   

1,869,391 

 

   

1,830,781 

 

   

   

   

 

   

   

 

   

   

7,320,785 

 

   

7,246,440 

 

Less: Accumulated depreciation

   

6,740,035 

 

   

6,573,915 

 

   

   

   

 

   

   

 

 Property, plant and equipment, net

$

580,750 

 

$

672,525 

 

   

   

   

 

   

   

 

Depreciation expense

$

166,120 

 

$

157,691 

 

 

 


Property, Plant And Equipment (Tables)
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Property, Plant And Equipment (Tables)
12 Months Ended
Sep. 30, 2013
Property, Plant And Equipment [Abstract]  
Schedule Of Property, Plant And Equipment

 

 

 

 

 

 

 

 

 

September 30

 

 

   

2013

 

   

2012

 

   

   

   

 

   

   

 

Land

$

143,000 

 

$

143,000 

 

Building and improvements

   

1,894,052 

 

   

1,865,502 

 

Machinery and equipment

   

3,414,342 

 

   

3,407,157 

 

Office equipment and fixtures

   

1,869,391 

 

   

1,830,781 

 

   

   

   

 

   

   

 

   

   

7,320,785 

 

   

7,246,440 

 

Less: Accumulated depreciation

   

6,740,035 

 

   

6,573,915 

 

   

   

   

 

   

   

 

 Property, plant and equipment, net

$

580,750 

 

$

672,525 

 

   

   

   

 

   

   

 

Depreciation expense

$

166,120 

 

$

157,691 

 

 


Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details)
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Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 7,320,785 $ 7,246,440
Less: Accumulated depreciation 6,740,035 6,573,915
Property, plant and equipment, net 580,750 672,525
Depreciation expense 166,120 157,691
Land [Member]
   
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 143,000 143,000
Buildings And Building Improvements [Member]
   
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 1,894,052 1,865,502
Machinery And Equipment [Member]
   
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 3,414,342 3,407,157
Office Equipment And Fixtures [Member]
   
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 1,869,391 $ 1,830,781

Credit Facilities
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Credit Facilities
12 Months Ended
Sep. 30, 2013
Credit Facilities [Abstract]  
Credit Facilities

4.  CREDIT FACILITIES

 The Company has unused aggregate lines of credit totaling $750,000 collateralized by inventory, equipment and accounts receivable. The variable interest rate is the "prime rate" as published each business day in the "Money Rates" column of the Wall Street Journal.


Credit Facilities (Details)
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Credit Facilities (Details) (USD $)
Sep. 30, 2013
Credit Facilities [Abstract]  
Unused aggregate lines of credit $ 750,000

Notes Payable
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Notes Payable
12 Months Ended
Sep. 30, 2013
Notes Payable [Abstract]  
Notes Payable

5. 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 September 30, 2013 and 2012 was $493,468 and $0, respectively. Interest accrued as of September 30, 2013 and 2012 was $1,727 and $0, 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.


Notes Payable (Details)
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Notes Payable (Details) (USD $)
12 Months Ended 0 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Jul. 02, 2013
KeyBank National Association [Member]
Line of Credit Facility [Line Items]      
Loan term     10 years
Ten year term loan, amount     $ 500,000.00
Ten year term loan, maturity date Jul. 02, 2023    
Per annum interest rate     4.50%
Total amount outstanding 493,468 0  
Interest accrued $ 1,727 $ 0  

Profit Sharing And 401-K Plans
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Profit Sharing And 401-K Plans
12 Months Ended
Sep. 30, 2013
Profit Sharing And 401-K Plans [Abstract]  
Profit Sharing And 401-K Plans

6.  PROFIT SHARING AND 401-K PLANS

  The Company maintains both a non-contributory profit sharing plan and a contributory 401-K plan for all employees over the age of 21 with one year of service.  Annual contributions to the profit sharing plan are determined by the Board of Directors and are made from current or accumulated earnings, while contributions to the 401-K plan were matched at a rate of 100% of an employee's first 6% of contributions during fiscal 2012.  The maximum corporate match was 6% of an employee's compensation during fiscal 2013.

  The Company's matching contributions to the 401-K plan for the years ended September 30, 2013 and 2012 were $80,074 and $96,709, respectively.  Additionally, the Company may make discretionary contributions to the non-contributory profit sharing plan.  These contributions were $0 in 2013 and 2012.


Profit Sharing And 401-K Plans (Details)
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Profit Sharing And 401-K Plans (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Profit Sharing And 401-K Plans [Abstract]    
Number of years of service required for profit sharing and 401-K plans 1 year  
Matching rate of contributions to 401-K plan   100.00%
Percentage of employee's contributions matched by employer   6.00%
Maximum corporate match of employee's compensation 6.00%  
Employer's matching contributions to 401-K plan $ 80,074 $ 96,709
Discretionary contributions to non-contributory profit sharing plan $ 0 $ 0

Obligations Under Operating Leases
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Obligations Under Operating Leases
12 Months Ended
Sep. 30, 2013
Obligations Under Operating Leases [Abstract]  
Obligations Under Operating Leases

7.  OBLIGATIONS UNDER OPERATING LEASES

  The Company leases equipment under operating lease agreements expiring at various dates through September 30, 2014.  Rental expense under these leases for the years ended September 30, 2013 and 2012 amounted to $9,290 and $9,290, respectively.

  Minimum rental commitments at September 30, 2013 for these leases are:

 

 

 

 

 

 

   

Year Ended

 

Lease

 

   

September 30,

   

Payments

 

   

2014

   

1,490 

 

   

   

   

   

 

   

   

$

1,490 

 

 

 


Obligations Under Operating Leases (Tables)
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Obligations Under Operating Leases (Tables)
12 Months Ended
Sep. 30, 2013
Obligations Under Operating Leases [Abstract]  
Minimum Rental Commitments

 

 

 

 

 

   

Year Ended

 

Lease

 

   

September 30,

   

Payments

 

   

2014

   

1,490 

 

   

   

   

   

 

   

   

$

1,490 

 

 


Obligations Under Operating Leases (Details)
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Obligations Under Operating Leases (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Obligations Under Operating Leases [Abstract]    
Rent expense $ 9,290 $ 9,290
2014 1,490  
Total rental commitments $ 1,490  

Income Taxes
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Income Taxes
12 Months Ended
Sep. 30, 2013
Income Taxes [Abstract]  
Income Taxes

8.  INCOME TAXES

  The provision for income taxes consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

   

   

   

   

Year Ended September 30,

   

 

   

   

   

   

2013

   

 

   

   

2012

   

 

Currently payable:

   

   

   

   

   

   

   

   

   

   

 

     Federal

   

$

   

   

   

$

   

   

 

     State

   

   

(

37,085 

)

   

   

 (

38,582 

)  

 

Deferred (credit)

   

   

   

   

   

   

 

 

 

   

   

   

   

   

   

   

   

   

   

   

 

   

   

$

(

37,085 

)

   

$

 (

38,582 

)

 

 


 

The provision for income taxes differs from the amount that would result from applying the federal statutory rate for the periods ended September 30, 2013 and 2012 as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

   

   

Year ended September 30,

   

 

   

 

2013

   

2012

 

   

   

   

Amount

   

   

%

   

   

   

Amount

   

   

%

   

 

Statutory tax rate

$  

(

200,110 

)

(

34.0 

%)

$

 

12,654 

   

   

34.0 

%

 

State income tax net of:

   

   

   

   

   

   

   

   

   

   

   

   

   

   

 

     Federal benefit

   

(

24,476 

)

(

4.2 

%)

   

(

25,464 

)

(

68.4 

%)

 

Research and experimentation

   

   

   

   

   

   

   

   

   

   

   

   

   

   

 

     tax credits

   

(

20,276 

)

(

3.4 

%)

   

(

26,784 

)

(

72 

%)

 

Valuation allowance change

   

 

207,449 

 

 

35.2 

%

   

 

685 

 

 

1.8 

%

 

Permanent differences

   

   

328 

   

   

0.1 

%

   

   

327 

   

   

0.9 

%

 

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

 

   

(

37,085 

)

(

6.3 

%)

$

(

38,582 

)

(

103.7 

%)

 

 

   

 

The temporary differences which give rise to deferred tax assets and (liabilities) at September 30 are as follows:

 

 

 

 

 

 

 

 

 

 

 

   

   

   

2013

   

   

   

2012

   

 

   

   

   

   

   

   

   

   

   

 

Inventory

$

   

150,236 

   

$

   

144,338 

   

 

Accrued warranty

   

   

4,250 

   

   

   

4,250 

   

 

Accrued vacation

   

   

51,988 

   

   

   

71,683 

   

 

Accounts receivable

   

   

8,895 

   

   

   

8,895 

   

 

Valuation allowance

   

(

215,369 

)

   

(

229,166 

)

 

   

   

   

   

   

   

   

   

   

 

Net deferred tax assets

   

   

   

   

   

   

   

   

 

(liabilities) - current

$  

   

   

$

   

   

 

   

   

   

   

   

   

   

   

   

 

Accelerated depreciation

$

(

83,245 

)

$

 (

55,691 

 

Research and experimentation

 

 

 

   

   

   

   

   

 

tax credit carry forward

   

   

244,463 

   

   

   

224,187 

   

 

AMT credit carry forward

   

   

39,399 

   

   

   

39,399 

   

 

NOL carry forward

   

   

247,101 

   

   

   

18,577 

   

 

Valuation allowance

   

(

447,718 

)

   

(

226,472 

)

 

 

 

 

 

 

 

 

 

 

 

Net deferred tax assets

   

   

   

   

   

   

   

   

 

(liabilities) – noncurrent

$

   

   

$

   

   

 

   

   

   

   

   

   

   

   

   

 

Net deferred tax assets

$

   

   

$

   

   

 

 

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.  The research and experimentation tax credit carry forwards and NOL carry forwards expire in 2032.  At September 30, 2013, the Company's federal AMT credit can be carried forward indefinitely. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the fiscal years September 30, 2011 through September 30, 2013.    The Company has no uncertain tax positions.  As of September 30, 2013 and 2012 there is no accrual for interest or penalties related to uncertain tax positions.


Income Taxes (Tables)
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Income Taxes (Tables)
12 Months Ended
Sep. 30, 2013
Income Taxes [Abstract]  
Provision For Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

   

   

   

   

Year Ended September 30,

   

 

   

   

   

   

2013