Document And Entity Information
v0.0.0.0
Document And Entity Information (USD $)
12 Months Ended
Sep. 30, 2014
Nov. 14, 2014
Mar. 31, 2014
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2014    
Document Fiscal Year Focus 2014    
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   2,583,507  
Entity Public Float     $ 1,643,008
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, 2014
Sep. 30, 2013
Current Assets:    
Cash and cash equivalents $ 1,081,567 $ 939,959
Accounts receivable-trade, net of allowance for doubtful accounts of $4,000 and $26,000 377,473 201,163
Federal and state income tax recoverable 0 37,085
Inventories, net of obsolete inventory reserve of $413,447 and $400,664 473,839 566,500
Prepaid expenses and other current assets 89,721 98,973
Total current assets 2,022,600 1,843,680
Property, plant and equipment, net 474,694 580,750
Total Assets 2,497,294 2,424,430
Current liabilities:    
Accounts payable 73,293 68,632
Customer deposits 32,431 16,362
Accrued payroll and related expenses 50,234 46,453
Accrued compensated absences 148,903 94,272
Notes Payable - Short Term 42,593 40,697
Other current liabilities 31,954 35,199
Total current liabilities 379,408 301,615
Notes Payable - Long Term 410,178 452,771
Total other liabilities 410,178 452,771
Total liabilities 789,586 754,386
Stockholders' Equity:    
Common stock, $.10 par value. Authorized 5,000,000 shares Issued 4,324,140 shares in 2014 and 2013, Outstanding 2,583,507 in 2014 and 2,585,086 in 2013 432,414 432,414
Additional paid-in capital 3,248,706 3,248,706
Retained earnings (280,893) (319,460)
Common stock in treasury, at cost, 1,740,633 shares in 2014 and 1,739,054 shares in 2013 (1,692,519) (1,691,616)
Total stockholders' equity 1,707,708 1,670,044
Total Liabilities and Stockholders' Equity $ 2,497,294 $ 2,424,430

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2014
Sep. 30, 2013
Consolidated Balance Sheets [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 4,000 $ 26,000
Inventories, obsolete inventory reserve $ 413,447 $ 400,664
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 2,583,507 2,585,086
Treasury stock, shares 1,740,633 1,739,054

Consolidated Statements Of Operations
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Consolidated Statements Of Operations (USD $)
12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Consolidated Statements Of Operations [Abstract]    
Net sales $ 3,627,445 $ 2,872,491
Cost of goods sold 2,132,116 1,935,792
Gross profit 1,495,329 936,699
Selling, general and administrative expenses 1,449,498 1,526,122
Income (loss) from operations 45,831 (589,423)
Non-operating Income (Expense)    
Interest income 2,005 1,826
Interest expense (21,524) (5,590)
Miscellaneous 8,658 4,629
Income (Loss) before income taxes 34,970 (588,558)
Benefit from income taxes (3,597) (37,085)
Net Income (Loss) $ 38,567 $ (551,473)
Per share data:    
Basic and Diluted Earnings (Loss) Per Common Share $ 0.01 $ (0.21)
Shares used in computing net earnings (loss) per share:    
Basic and diluted 2,584,564 2,585,204

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, 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 income (loss)     (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  
Net income (loss)     38,567   38,567
Purchase of treasury stock, value       (903) (903)
Purchase of treasury stock, shares       1,579  
Balance at Sep. 30, 2014 $ 432,414 $ 3,248,706 $ (280,893) $ (1,692,519) $ 1,707,708
Balance, shares at Sep. 30, 2014 4,324,140     1,740,633  

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net income (loss) $ 38,567 $ (551,473)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 132,055 166,120
Provision for doubtful accounts (21,950) 0
Inventory obsolescence provision 12,783 (7,675)
Changes in assets and liabilities:    
Accounts receivable-trade (154,360) 62,222
Federal and state income tax recoverable 37,085 (37,085)
Inventories 79,878 (29,750)
Prepaid and other current assets 9,252 12,369
Accounts payable and customer deposits 20,730 (37,894)
Accrued payroll, compensated absences and related expenses 58,412 (82,762)
Other current liabilities (3,245) 3,891
Net cash provided by (used in) operating activities 209,207 (502,037)
Cash flows from investing activities:    
Capital expenditures (25,999) (74,345)
Net cash used in investing activities (25,999) (74,345)
Cash flows from financing activities:    
Proceeds from note payable 0 493,468
Repayment of note payable (40,697) 0
Purchase of treasury stock (903) (144)
Net cash (used in) provided by financing activities (41,600) 493,324
Net increase (decrease) in cash and cash equivalents 141,608 (83,058)
Cash and cash equivalents at beginning of year 939,959 1,023,017
Cash and cash equivalents at end of year 1,081,567 939,959
Supplemental disclosures of cash flows:    
Cash paid during the year for: Interest 21,667 3,862
Cash paid during the year for: Income taxes $ 0 $ 0

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
12 Months Ended
Sep. 30, 2014
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 $335,348 and $311,935 for the fiscal years 2014 and 2013, 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, 2014 and 2013.

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 $7,000 and $8,500 for the fiscal years ended September 30, 2014 and 2013, 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, 2014 and 2013.

q.  New Accounting Pronouncements

   In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in fiscal year 2018.

 

  In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern.

 

 


Summary Of Significant Accounting Policies (Policy)
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Summary Of Significant Accounting Policies (Policy)
12 Months Ended
Sep. 30, 2014
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 $335,348 and $311,935 for the fiscal years 2014 and 2013, 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, 2014 and 2013.

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 $7,000 and $8,500 for the fiscal years ended September 30, 2014 and 2013, 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, 2014 and 2013.

New Accounting Pronouncements

q.  New Accounting Pronouncements

   In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in fiscal year 2018.

 

  In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern.


Summary Of Significant Accounting Policies (Details)
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Summary Of Significant Accounting Policies (Details) (USD $)
12 Months Ended
Sep. 30, 2014
item
Sep. 30, 2013
Property, Plant and Equipment [Line Items]    
Number of industries company operates in 1  
Research and development costs $ 335,348 $ 311,935
Dilutive potential shares outstanding 0 0
Warranty costs 7,000 8,500
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, 2014
Inventories [Abstract]  
Inventories

 

2.  INVENTORIES

Inventories net of provision for obsolescence consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

 

 

2014

 

 

2013

 

   

 

 

 

 

 

 

Raw materials and stock parts  

$

334,891 

 

$

432,871 

 

Work-in-process  

   

46,292 

 

   

24,137 

 

Finished goods  

   

92,656 

 

   

109,492 

 

   

 

 

 

 

 

 

   

$

473,839 

 

$

566,500 

 

                                          
  The Company's reserve for obsolescence equaled $413,447 at September 30, 2014 and $400,664 at September 30, 2013.


Inventories (Tables)
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Inventories (Tables)
12 Months Ended
Sep. 30, 2014
Inventories [Abstract]  
Schedule Of Inventories Net Of Reserve For Obsolescence

 

 

 

 

 

 

 

 

 

September 30

 

 

 

2014

 

 

2013

 

   

 

 

 

 

 

 

Raw materials and stock parts  

$

334,891 

 

$

432,871 

 

Work-in-process  

   

46,292 

 

   

24,137 

 

Finished goods  

   

92,656 

 

   

109,492 

 

   

 

 

 

 

 

 

   

$

473,839 

 

$

566,500 

 

 


Inventories (Details)
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Inventories (Details) (USD $)
Sep. 30, 2014
Sep. 30, 2013
Inventories [Abstract]    
Raw materials and stock parts $ 334,891 $ 432,871
Work-in-process 46,292 24,137
Finished goods 92,656 109,492
Inventories, net 473,839 566,500
Reserve for obsolescence $ 413,447 $ 400,664

Property, Plant And Equipment
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Property, Plant And Equipment
12 Months Ended
Sep. 30, 2014
Property, Plant And Equipment [Abstract]  
Property, Plant And Equipment

3.  PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following: 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

 

   

2014

 

   

2013

 

   

   

   

 

   

   

 

Land

$

143,000 

 

$

143,000 

 

Building and improvements

   

1,908,300 

 

   

1,894,052 

 

Machinery and equipment

   

3,424,964 

 

   

3,414,342 

 

Office equipment and fixtures

   

1,870,520 

 

   

1,869,391 

 

   

   

   

 

   

   

 

   

   

7,346,784 

 

   

7,320,785 

 

Less: Accumulated depreciation

   

6,872,090 

 

   

6,740,035 

 

   

   

   

 

   

   

 

 Property, plant and equipment, net

$

474,694 

 

$

580,750 

 

   

   

   

 

   

   

 

Depreciation expense

$

132,055 

 

$

166,120 

 

 


Property, Plant And Equipment (Tables)
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Property, Plant And Equipment (Tables)
12 Months Ended
Sep. 30, 2014
Property, Plant And Equipment [Abstract]  
Schedule Of Property, Plant And Equipment

 

 

 

 

 

 

 

 

 

September 30

 

 

   

2014

 

   

2013

 

   

   

   

 

   

   

 

Land

$

143,000 

 

$

143,000 

 

Building and improvements

   

1,908,300 

 

   

1,894,052 

 

Machinery and equipment

   

3,424,964 

 

   

3,414,342 

 

Office equipment and fixtures

   

1,870,520 

 

   

1,869,391 

 

   

   

   

 

   

   

 

   

   

7,346,784 

 

   

7,320,785 

 

Less: Accumulated depreciation

   

6,872,090 

 

   

6,740,035 

 

   

   

   

 

   

   

 

 Property, plant and equipment, net

$

474,694 

 

$

580,750 

 

   

   

   

 

   

   

 

Depreciation expense

$

132,055 

 

$

166,120 

 

 


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, 2014
Sep. 30, 2013
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 7,346,784 $ 7,320,785
Less: Accumulated depreciation 6,872,090 6,740,035
Property, plant and equipment, net 474,694 580,750
Depreciation expense 132,055 166,120
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 1,908,300 1,894,052
Machinery And Equipment [Member]
   
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 3,424,964 3,414,342
Office Equipment And Fixtures [Member]
   
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 1,870,520 $ 1,869,391

Notes Payable
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Notes Payable
12 Months Ended
Sep. 30, 2014
Notes Payable [Abstract]  
Notes Payable

4. 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, 2014 and 2013 was $452,771 and $493,468 respectively. Interest accrued as of September 30, 2014 and 2013 was $1,585 and $1,727 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. The future obligations of the loan are as follows:

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Principal

 

Interest

 

Total

 

September 30,

 

Payments

 

Payments

 

Payments

 

 

 

 

 

 

 

 

 

2015

 

$
42,593 

 

$
19,771 

 

$
62,364 

 

2016

 

44,528 

 

17,836 

 

62,364 

 

2017

 

46,652 

 

15,712 

 

62,364 

 

2018

 

48,826 

 

13,538 

 

62,364 

 

2019

 

51,101 

 

11,263 

 

62,364 

 

Thereafter

 

219,071 

 

20,157 

 

239,228 

 

 

 

$
452,771 

 

$
98,277 

 

$
551,048 

 

 


Notes Payable (Tables)
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Notes Payable (Tables)
12 Months Ended
Sep. 30, 2014
Notes Payable [Abstract]  
Schedule Of Future Obligations Of Loan

 

 

 

 

 

 

 

 

Year Ended

 

Principal

 

Interest

 

Total

 

September 30,

 

Payments

 

Payments

 

Payments

 

 

 

 

 

 

 

 

 

2015

 

$
42,593 

 

$
19,771 

 

$
62,364 

 

2016

 

44,528 

 

17,836 

 

62,364 

 

2017

 

46,652 

 

15,712 

 

62,364 

 

2018

 

48,826 

 

13,538 

 

62,364 

 

2019

 

51,101 

 

11,263 

 

62,364 

 

Thereafter

 

219,071 

 

20,157 

 

239,228 

 

 

 

$
452,771 

 

$
98,277 

 

$
551,048 

 

 


Notes Payable (Narrative) (Details)
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Notes Payable (Narrative) (Details) (USD $)
12 Months Ended 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
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 452,771 493,468  
Interest accrued $ 1,585 $ 1,727  

Notes Payable (Schedule Of Future Obligations Of Loan) (Details)
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Notes Payable (Schedule Of Future Obligations Of Loan) (Details) (USD $)
12 Months Ended
Sep. 30, 2014
Notes Payable [Abstract]  
Principal Payments, 2015 $ 42,593
Principal Payments, 2016 44,528
Principal Payments, 2017 46,652
Principal Payments, 2018 48,826
Principal Payments, 2019 51,101
Principal Payments, Thereafter 219,071
Principal Payments 452,771
Interest Payments, 2015 19,771
Interest Payments, 2016 17,836
Interest Payments, 2017 15,712
Interest Payments, 2018 13,538
Interest Payments, 2019 11,263
Interest Payments, Thereafter 20,157
Interest Payments 98,277
Total Payments, 2015 62,364
Total Payments, 2016 62,364
Total Payments, 2017 62,364
Total Payments, 2018 62,364
Total Payments, 2019 62,364
Total Payments, Thereafter 239,228
Total Payments $ 551,048

Profit Sharing And 401-K Plans
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Profit Sharing And 401-K Plans
12 Months Ended
Sep. 30, 2014
Profit Sharing And 401-K Plans [Abstract]  
Profit Sharing And 401-K Plans

5.  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 2014.  The maximum corporate match was 6% of an employee's compensation during fiscal 2014.

  The Company's matching contributions to the 401-K plan for the years ended September 30, 2014 and 2013 were $76,460 and $80,074, respectively.  Additionally, the Company may make discretionary contributions to the non-contributory profit sharing plan.  These contributions were $0 in 2014 and 2013.


Profit Sharing And 401-K Plans (Details)
v0.0.0.0
Profit Sharing And 401-K Plans (Details) (USD $)
12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Profit Sharing And 401-K Plans [Abstract]    
Minimum age required for profit sharing and 401-K plans 21 years  
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 $ 76,460 $ 80,074
Discretionary contributions to non-contributory profit sharing plan $ 0 $ 0

Income Taxes
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Income Taxes
12 Months Ended
Sep. 30, 2014
Income Taxes [Abstract]  
Income Taxes

6.  INCOME TAXES

  The provision for income taxes consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

   

   

   

Year Ended September 30,

   

 

   

   

   

   

2014

   

 

   

   

2013

   

 

Currently payable:

   

   

   

   

   

   

   

   

   

   

 

     Federal

   

$

(

3,597 

)

   

$

   

   

 

     State

   

   

 

 

   

   

 (

37,085 

)  

 

Deferred (credit)

   

   

   

   

   

   

 

 

 

   

   

   

   

   

   

   

   

   

   

   

 

   

   

$

(

3,597 

)

   

$

 (

37,085 

)

 

 

The provision for income taxes differs from the amount that would result from applying the federal statutory rate for the periods ended September 30, 2014 and 2013 as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

   

   

Year ended September 30,

   

 

   

 

2014

   

2013

 

   

   

   

Amount

   

   

%

   

   

   

Amount

   

   

%

   

 

Statutory tax rate

$  

 

11,890 

 

 

34.0 

%

$

(

200,110 

)

(

34.0 

%)

 

State income tax net of:

   

   

   

   

   

   

   

   

   

   

   

   

   

   

 

     Federal benefit

   

 

 

 

%

   

(

24,476 

)

(

4.2 

%)

 

Research and experimentation

   

   

   

   

   

   

   

   

   

   

   

   

   

   

 

     tax credits

   

(

13,091 

)

(

37.4 

%)

   

(

20,276 

)

(

3.4 

%)

 

Prior years federal refund

 

(

3,597 

)

(

10.3 

%)

 

 

 

 

 

 

NOL carryforward true up

 

 

69,176 

 

 

197.8 

%

 

 

 

 

 

 

Valuation allowance change

   

(

68,181 

)

(

195.0 

%)

   

 

207,449 

 

 

35.2 

%

 

Permanent differences

   

   

206 

   

   

0.6 

%

   

   

328 

   

   

0.1 

%

 

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

 

   

(

3,597 

)

(

10.3 

%)

$

(

37,085 

)

(

6.3 

%)

 

 

   

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

   

   

2014

   

   

   

2013

   

   

   

   

   

   

   

   

   

   

   

   

Inventory

$

   

146,577 

   

$

   

150,236 

   

   

Accrued warranty

   

   

4,250 

   

   

   

4,250 

   

   

Accrued vacation

   

   

44,167 

   

   

   

51,988 

   

   

Accounts receivable

   

   

1,432 

   

   

   

8,895 

   

   

Valuation allowance

   

(

196,426 

)

   

(

215,369 

)

 

   

   

   

   

   

   

   

   

   

   

Net deferred tax assets

   

   

   

   

   

   

   

   

   

(liabilities) - current

$  

   

   

$

   

   

   

   

   

   

   

   

   

   

   

   

   

Accelerated depreciation

$

(

9,414 

)

$

(

83,245 

)

 

Research and experimentation

 

 

 

   

   

 

 

   

   

tax credit carry forward

   

   

243,240 

   

   

   

244,463 

   

   

AMT credit carry forward

   

   

37,521 

   

   

   

39,399 

   

   

NOL carry forward

   

   

127,133 

   

   

   

247,101 

   

   

Valuation allowance

   

(

398,480 

)

   

(

447,718 

)

 

 

 

 

 

 

 

 

 

 

 

Net deferred tax assets

   

   

   

   

   

   

   

   

   

(liabilities) – noncurrent

$

   

   

$

   

   

   

   

   

   

   

   

   

   

   

   

   

Net deferred tax assets

$

   

   

$

   

   

   

 

As required by FASB ASC 740 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 2033.  At September 30, 2014, 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, 2012 through September 30, 2014.  The Company has no uncertain tax positions.  As of September 30, 2014 and 2013 there is no accrual for interest or penalties related to uncertain tax positions.


Income Taxes (Tables)