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<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b>Note 1 BASIS OF PRESENTATION</b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Business Description</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Micropac Industries, Inc. (the “Company”),
a Delaware corporation, designs, manufactures and distributes various types of microelectronic circuits, solid state relays, power
controllers, and optoelectronic components and assemblies. The Company’s products are used as components and assemblies in
a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, satellite systems,
power supplies, electronic controls, computers, medical devices, and high-temperature (200<sup>o</sup> C) products.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s facilities are certified
and qualified by the Defense Logistics Agency (DLA) to MIL-PRF-38534 (class K-space level) and MIL-PRF-19500 JANS (space level)
and are certified to ISO 9001:2015 and AS 9100D. Micropac is a National Aeronautics and Space Administration (NASA) core supplier,
and is registered to AS9100-Aerospace Industry standard for supplier certification. The Company has Underwriters Laboratories (UL)
approval on our industrial power controllers.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s core technology is microelectronic
and optoelectronic designs to include the packaging and interconnecting of multi-chip microelectronics modules. Other technologies
include light emitting and light sensitive materials and products, including light emitting diodes and silicon phototransistors,
and electronic integration used in the Company’s optoelectronic components and assemblies.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The business of the Company was started in 1963
as a sole proprietorship. On March 3, 1969, the Company was incorporated under the name of “Micropac Industries, Inc.”
in the state of Delaware. The stock was publicly held by 442 shareholders on August 24, 2019.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In the opinion of management, the unaudited financial
statements include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the financial
position as of August 24, 2019, the results of operations for the three and nine months ended August 24, 2019 and August 25, 2018,
and the cash flows for the nine months ended August 24, 2019 and August 25, 2018 including the statement of shareholders equity.
Unaudited financial statements are prepared on a basis substantially consistent with those audited for the year ended November
30, 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally
accepted accounting principles in the United States have been condensed or omitted pursuant to the rules and regulations promulgated
by the Securities and Exchange Commission. The Company’s fiscal year ends on the last day of November. The quarterly results
end on the last Saturday of the quarter.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">It is suggested that these financial statements
be read in conjunction with the November 30, 2018 Form 10-K filed with the SEC, including the audited financial statements and
the accompanying notes thereto.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b>Note 2 SIGNIFICANT ACCOUNTING POLICIES</b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Revenue Recognition</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">On May 28, 2014, the Financial Accounting
Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, <i>Revenue from Contracts with Customers (Topic 606)</i>,
which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods
and services to customers. The ASU replaces most existing revenue recognition guidance in the United States. The standard permits
the use of either the full retrospective or modified retrospective transition method.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Based on a review of its customer
contracts, the Company has determined that revenue on the majority of its customer contracts will continue to be recognized at
a point in time, generally upon shipment of products, consistent with the Company’s historical revenue recognition model. </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The core principle of the guidance in Topic 606
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.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">To achieve that core principle, the Company applied
the following steps:</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">1. Identify the contract(s) with a customer.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company designs, manufactures and distributes
various types of microelectronic circuits, optoelectronics, and sensors and displays. The Company’s products are used as
components and assemblies in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation
systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200<sup>o</sup>
C) products.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s revenues are from purchase
orders associated with manufacture of products and/or contracts with customers. We account for a contract when it has approval
and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial
substance and collectability of consideration is probable.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">2. Identify the performance obligations in the
contract.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The majority of the Company’s purchase
orders or contracts with customers contain a single performance obligation, the sale of products. This performance obligation
is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company receives
purchase orders for products to be delivered over multiple dates that may extend across reporting periods. This performance obligation
is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. <font style="background-color: #FEFEFE">The
Company accounting policy treats shipping and handling activities as a fulfillment cost.</font></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">3. Determine the transaction price.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The transaction price reflects the Company’s
expectations about the consideration it will be entitled to receive from the customer at a fixed price per unit shipped based on
the terms of the contract or purchase order with the customer.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">4. Allocate the transaction price to the performance
obligations in the contract.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company transaction price is the fixed price
per unit per each delivery upon shipment.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">5. Recognize revenue when (or as) the Company
satisfies a performance obligation.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company invoices for each delivery upon shipment
and recognizes revenues at the fixed price for each distinct product delivered when transfer of control has occurred, which is
generally upon shipment.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">For certain contracts under which
the Company produces products with no alternative use and for which the Company has an enforceable right to payment during the
production cycle, Topic 606 requires the Company to recognize revenue using an over-time recognition model as opposed to recognizing
revenue at the time of shipment. The Company recognizes this revenue at work in process cost plus a margin at the end of each period
and records a contract asset (unbilled receivable). The majority of these products are shipped weekly and monthly to the customer.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">In addition, the Company may have
a contract or purchase order to provide a non-recurring engineering service to a customer. These contracts are reviewed and performance
obligations are determined and revenue recognized upon terms and conditions of the contract from the customer.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Effective as of the beginning of the
first quarter of fiscal 2019, we adopted Topic 606 using the modified retrospective method and recognized a cumulative effect adjustment
to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition
model to an over-time recognition model. While the impact to net sales and net income was not material to our results of operations,
the future impact of Topic 606 is dependent on the mix and nature of specific customer contracts.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Upon adoption, we recognized an increase
in retained earnings of $55,000. The details of the adjustment to retained earnings upon adoption as well as the effects of the
balance sheet are as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Balance at</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3" style="text-align: center; vertical-align: middle"><b>Balance at</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid">Assets</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">November 30, 2018</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Adjustment due to Topic 606</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 1, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: justify; padding-left: 5.4pt">   Contract assets</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">   Work in process</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,985</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(173</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,812</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-left: 5.4pt">Deferred income tax net</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">57</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(15</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">42</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-left: 5.4pt">Shareholder equity</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">   Retained Earnings</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">24,800</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">55</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">24,855</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt">The following table summarize the effects of the new standard
on selected unaudited line items within the Company’s Condensed Statement of Operations for three and nine months ended August
24, 2019.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Three months ended August 24,
2019</u></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p>
<p style="margin-top: 0; margin-bottom: 0">adoption of</p>
<p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,252</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,116</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(136</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(4,042</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(3,970</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">72</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,381</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,317</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(64</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(193</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(180</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,188</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,137</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(51</td><td style="text-align: left">)</td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Nine months ended August 24,
2019</u></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p>
<p style="margin-top: 0; margin-bottom: 0">adoption of</p>
<p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,966</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,414</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(552</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(10,138</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(9,769</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">369</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,427</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(183</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">365</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">327</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(38</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,245</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,100</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(145</td><td style="text-align: left">)</td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b>Disaggregation of Revenue</b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt">The following table summarizes the Company’s net
sales by product line.</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">8/24/2019</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">8/25/2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font: 9pt Arial, Helvetica, Sans-Serif; padding-left: 5.4pt">Microcircuits</td><td style="width: 8%; font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">5,660</td><td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">3,121</td><td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-left: 5.4pt">Optoeletronics</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">4,730</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">6,559</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Sensors and Displays</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">7,576</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">4,162</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,966</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Timing of revenue recognition</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Recognized at a point in time</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,414</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Recognized over time</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">552</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">    Total Revenue</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,966</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Deferred Revenue represents advance
payments from customers and will be recognized as revenue when the performance obligations are met based on the terms of the contract.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"><b>Contract costs</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">The Company does not have material
incremental costs to obtain a contract in the form of sales commissions or bonuses. The Company incurs
other immaterial costs to obtain and fulfill a contract; however, the Company has elected the practical expedient under ASC 340-40-24-4
to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Short-Term Investments</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has $2,081,000 in short-term investments
at August 24, 2019. Short-term investments consist of certificates of deposits with maturities greater than 90 days. These investments
are reported at historical cost, which approximates fair value. All highly liquid investments with maturities of 90 days or less
are classified as cash equivalents. All short-term investments are securities which the Company has the ability and intent to hold
to maturity and mature within one year.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Inventories</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Inventories are stated at lower of cost or net
realizable value and include material, labor and manufacturing overhead. All inventories are valued using the FIFO (first-in, first-out)
method of inventory valuation. The Company determines the need to write inventory down to the lower of cost or net realizable value
via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Income Taxes</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company accounts for income taxes using the
asset and liability method. Under this method the Company records deferred income taxes for the temporary differences between the
financial reporting basis and the tax basis of assets and liabilities at enacted tax rates expected to be in effect when such amounts
are realized or settled. The resulting deferred tax liabilities and assets are adjusted to reflect changes in tax law or rates
in the period that includes the enactment date.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company records a liability for an unrecognized
tax benefit for a tax position that is not “more-likely-than-not” to be sustained.  The Company did not record
any liability for uncertain tax positions as of August 24, 2019.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On December 22, 2017, the Tax Cuts and Jobs Act
(the “Tax Act”) was signed into United States tax law, which among other provisions lowered the corporate tax rate
to 21%.</p>
<p style="font: 9pt/10.8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 9pt/10.8pt Arial, Helvetica, Sans-Serif; margin: 0">In December 2017, the Securities and Exchange Commission issued
Staff Accounting Bulletin ("SAB") 118 to provide guidance for companies that allows for a measurement period of up to
one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance
with SAB 118, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740
is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able
to determine a reasonable estimate, the company must record a provisional estimate in the financial statements.</p>
<p style="font: 9pt/10.8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">ASC 740 requires the effects of changes in tax
rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, as of
the date of enactment, and during the twelve months ended November 30, 2018, we revalued all deferred tax assets and liabilities
at the newly enacted Federal corporate US income tax rate.  This revaluation as of enactment resulted in a non-cash provisional
estimate of $77,000 to income tax expense and a corresponding reduction in the net deferred tax asset.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Property, Plant, and Equipment</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Property, plant, and equipment are carried at
cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in
years) of the assets:</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Buildings....................................................................................................................................................15</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Facility improvements.........................................................................................................................	8-15</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Machinery and equipment.................................................................................................................	5-10</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Furniture and fixtures	...........................................................................................................................5-8</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company assesses long-lived assets for impairment
in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ASC 360-10-35, <i>Property,
Plant and Equipment – Subsequent Measurement</i>. When events or circumstances indicate that an asset may be impaired, an
assessment is performed. The estimated future undiscounted cash flows associated with the asset are compared to the asset’s
net book value to determine if a write down to market value less cost to sell is required.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Repairs and maintenance are expensed as incurred.
Improvements which extend the useful lives of property, plant, and equipment are capitalized.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Research and Development Costs</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Costs for the design and development of new products
are expensed as incurred.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b>Note 3 NEW ACCOUNTING PRONOUNCEMENTS</b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In February 2016, the FASB issued Accounting
Standards Update (ASU) 2016-02, <i>Leases (Topic 842)</i>. Under the new standard, lessees will be required to recognize lease
assets and liabilities for all leases, with certain exceptions, on their balance sheets. Public business entities are required
to adopt the standard for reporting periods beginning after December 15, 2018. The Company does not expect the adoption of this
guidance to have a material impact on its consolidated financial statements.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b>Note 4 FAIR VALUE MEASUREMENT</b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company had no financial assets or liabilities
measured at fair value on a recurring basis as of August 24, 2019 and November 30, 2018.  The fair value of financial instruments
such as cash and cash equivalents, short term investments, accounts receivable, and accounts payable approximate their carrying
amount based on the short maturity of these instruments.  There were no nonfinancial assets measured at fair value on a nonrecurring
basis at August 24, 2019 and November 30, 2018.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b>Note 5 COMMITMENTS</b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 30, 2019, the Company renewed the Loan
Agreement with a Texas banking institution. The Loan Agreement provides for revolving credit loans, in amounts not to exceed a
total principal balance of $6,000,000. The Loan Agreement also contains financial covenants to maintain at all times including
(i) minimum working capital of not less than $4,000,000, (ii) a ratio of senior funded debt, minus the Company’s balance
sheet cash on hand to the extent in excess of $2,000,000 to EBITDA of not more than 3.0 to 1.0, and (iii) a ratio of free cash
flow to debt service of not less than 1.2 to 1.0. The Company has not, to date, drawn any amounts under the revolving line of credit
and is currently in compliance with the financial covenants.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b>Note 6 EARNINGS PER COMMON SHARE</b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Basic and diluted earnings per share are computed
based upon the weighted average number of shares outstanding during the respective periods. Diluted earnings per share gives effect
to all dilutive potential common shares. For the three and nine months ended August 24, 2019 and February 24, 2018, the Company
had no dilutive potential common stock instruments.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b>Note 7 SHAREHOLDERS’ EQUITY</b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On December 12, 2017, the Board of Directors
of Micropac Industries, Inc. approved the payment of a $0.10 per share special dividend to all shareholders of record as of January
10, 2018. The dividend was paid to shareholders on February 8, 2018.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On December 11, 2018, the Board of Directors
of Micropac Industries, Inc. approved the payment of a $0.10 per share special dividend to all shareholders of record as of January
9, 2019. The dividend was paid to shareholders on February 8, 2019.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Revenue Recognition</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">On May 28, 2014, the Financial Accounting
Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, <i>Revenue from Contracts with Customers (Topic 606)</i>,
which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods
and services to customers. The ASU replaces most existing revenue recognition guidance in the United States. The standard permits
the use of either the full retrospective or modified retrospective transition method.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Based on a review of its customer
contracts, the Company has determined that revenue on the majority of its customer contracts will continue to be recognized at
a point in time, generally upon shipment of products, consistent with the Company’s historical revenue recognition model. </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The core principle of the guidance in Topic 606
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.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">To achieve that core principle, the Company applied
the following steps:</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">1. Identify the contract(s) with a customer.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company designs, manufactures and distributes
various types of microelectronic circuits, optoelectronics, and sensors and displays. The Company’s products are used as
components and assemblies in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation
systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200<sup>o</sup>
C) products.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company’s revenues are from purchase
orders associated with manufacture of products and/or contracts with customers. We account for a contract when it has approval
and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial
substance and collectability of consideration is probable.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">2. Identify the performance obligations in the
contract.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The majority of the Company’s purchase
orders or contracts with customers contain a single performance obligation, the sale of products. This performance obligation
is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. The Company receives
purchase orders for products to be delivered over multiple dates that may extend across reporting periods. This performance obligation
is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. <font style="background-color: #FEFEFE">The
Company accounting policy treats shipping and handling activities as a fulfillment cost.</font></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">3. Determine the transaction price.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The transaction price reflects the Company’s
expectations about the consideration it will be entitled to receive from the customer at a fixed price per unit shipped based on
the terms of the contract or purchase order with the customer.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">4. Allocate the transaction price to the performance
obligations in the contract.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company transaction price is the fixed price
per unit per each delivery upon shipment.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">5. Recognize revenue when (or as) the Company
satisfies a performance obligation.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company invoices for each delivery upon shipment
and recognizes revenues at the fixed price for each distinct product delivered when transfer of control has occurred, which is
generally upon shipment.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">For certain contracts under which
the Company produces products with no alternative use and for which the Company has an enforceable right to payment during the
production cycle, Topic 606 requires the Company to recognize revenue using an over-time recognition model as opposed to recognizing
revenue at the time of shipment. The Company recognizes this revenue at work in process cost plus a margin at the end of each period
and records a contract asset (unbilled receivable). The majority of these products are shipped weekly and monthly to the customer.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">In addition, the Company may have
a contract or purchase order to provide a non-recurring engineering service to a customer. These contracts are reviewed and performance
obligations are determined and revenue recognized upon terms and conditions of the contract from the customer.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Effective as of the beginning of the
first quarter of fiscal 2019, we adopted Topic 606 using the modified retrospective method and recognized a cumulative effect adjustment
to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition
model to an over-time recognition model. While the impact to net sales and net income was not material to our results of operations,
the future impact of Topic 606 is dependent on the mix and nature of specific customer contracts.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Upon adoption, we recognized an increase
in retained earnings of $55,000. The details of the adjustment to retained earnings upon adoption as well as the effects of the
balance sheet are as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Balance at</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3" style="text-align: center; vertical-align: middle"><b>Balance at</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid">Assets</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">November 30, 2018</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Adjustment due to Topic 606</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 1, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: justify; padding-left: 5.4pt">   Contract assets</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">   Work in process</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,985</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(173</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,812</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-left: 5.4pt">Deferred income tax net</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">57</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(15</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">42</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-left: 5.4pt">Shareholder equity</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">   Retained Earnings</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">24,800</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">55</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">24,855</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt">The following table summarize the effects of the new standard
on selected unaudited line items within the Company’s Condensed Statement of Operations for three and nine months ended August
24, 2019.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Three months ended August 24,
2019</u></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p>
<p style="margin-top: 0; margin-bottom: 0">adoption of</p>
<p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,252</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,116</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(136</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(4,042</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(3,970</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">72</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,381</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,317</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(64</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(193</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(180</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,188</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,137</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(51</td><td style="text-align: left">)</td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Nine months ended August 24,
2019</u></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p>
<p style="margin-top: 0; margin-bottom: 0">adoption of</p>
<p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,966</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,414</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(552</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(10,138</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(9,769</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">369</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,427</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(183</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">365</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">327</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(38</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,245</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,100</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(145</td><td style="text-align: left">)</td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b>Disaggregation of Revenue</b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt">The following table summarizes the Company’s net
sales by product line.</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">8/24/2019</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">8/25/2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font: 9pt Arial, Helvetica, Sans-Serif; padding-left: 5.4pt">Microcircuits</td><td style="width: 8%; font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">5,660</td><td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">3,121</td><td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-left: 5.4pt">Optoeletronics</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">4,730</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">6,559</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Sensors and Displays</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">7,576</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">4,162</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,966</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Timing of revenue recognition</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Recognized at a point in time</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,414</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Recognized over time</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">552</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">    Total Revenue</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,966</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">Deferred Revenue represents advance
payments from customers and will be recognized as revenue when the performance obligations are met based on the terms of the contract.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"><b>Contract costs</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify">The Company does not have material
incremental costs to obtain a contract in the form of sales commissions or bonuses. The Company incurs
other immaterial costs to obtain and fulfill a contract; however, the Company has elected the practical expedient under ASC 340-40-24-4
to recognize all incremental costs to obtain a contract as an expense when incurred if the amortization period is one year or less</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Short-Term Investments</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company has $2,081,000 in short-term investments
at August 24, 2019. Short-term investments consist of certificates of deposits with maturities greater than 90 days. These investments
are reported at historical cost, which approximates fair value. All highly liquid investments with maturities of 90 days or less
are classified as cash equivalents. All short-term investments are securities which the Company has the ability and intent to hold
to maturity and mature within one year.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Inventories</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Inventories are stated at lower of cost or net
realizable value and include material, labor and manufacturing overhead. All inventories are valued using the FIFO (first-in, first-out)
method of inventory valuation. The Company determines the need to write inventory down to the lower of cost or net realizable value
via an analysis based on the usage of inventory over a three year period and projected usage based on current backlog.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Income Taxes</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company accounts for income taxes using the
asset and liability method. Under this method the Company records deferred income taxes for the temporary differences between the
financial reporting basis and the tax basis of assets and liabilities at enacted tax rates expected to be in effect when such amounts
are realized or settled. The resulting deferred tax liabilities and assets are adjusted to reflect changes in tax law or rates
in the period that includes the enactment date.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company records a liability for an unrecognized
tax benefit for a tax position that is not “more-likely-than-not” to be sustained.  The Company did not record
any liability for uncertain tax positions as of August 24, 2019.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On December 22, 2017, the Tax Cuts and Jobs Act
(the “Tax Act”) was signed into United States tax law, which among other provisions lowered the corporate tax rate
to 21%.</p>
<p style="font: 9pt/10.8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 9pt/10.8pt Arial, Helvetica, Sans-Serif; margin: 0">In December 2017, the Securities and Exchange Commission issued
Staff Accounting Bulletin ("SAB") 118 to provide guidance for companies that allows for a measurement period of up to
one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance
with SAB 118, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740
is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able
to determine a reasonable estimate, the company must record a provisional estimate in the financial statements.</p>
<p style="font: 9pt/10.8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">ASC 740 requires the effects of changes in tax
rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, as of
the date of enactment, and during the twelve months ended November 30, 2018, we revalued all deferred tax assets and liabilities
at the newly enacted Federal corporate US income tax rate.  This revaluation as of enactment resulted in a non-cash provisional
estimate of $77,000 to income tax expense and a corresponding reduction in the net deferred tax asset.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Property, Plant, and Equipment</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Property, plant, and equipment are carried at
cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in
years) of the assets:</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Buildings....................................................................................................................................................15</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Facility improvements.........................................................................................................................	8-15</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Machinery and equipment.................................................................................................................	5-10</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Furniture and fixtures	...........................................................................................................................5-8</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company assesses long-lived assets for impairment
in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ASC 360-10-35, <i>Property,
Plant and Equipment – Subsequent Measurement</i>. When events or circumstances indicate that an asset may be impaired, an
assessment is performed. The estimated future undiscounted cash flows associated with the asset are compared to the asset’s
net book value to determine if a write down to market value less cost to sell is required.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Repairs and maintenance are expensed as incurred.
Improvements which extend the useful lives of property, plant, and equipment are capitalized.</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><b><u>Research and Development Costs</u></b></p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Costs for the design and development of new products
are expensed as incurred.</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Balance at</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3" style="text-align: center; vertical-align: middle"><b>Balance at</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid">Assets</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">November 30, 2018</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Adjustment due to Topic 606</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 1, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: justify; padding-left: 5.4pt">   Contract assets</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-left: 5.4pt">   Work in process</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,985</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(173</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,812</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: center; padding-left: 5.4pt">Deferred income tax net</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">57</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(15</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">42</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: justify; padding-left: 5.4pt">Shareholder equity</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-left: 5.4pt">   Retained Earnings</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">24,800</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">55</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">24,855</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Three months ended August 24,
2019</u></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p>
<p style="margin-top: 0; margin-bottom: 0">adoption of</p>
<p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,252</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">7,116</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(136</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(4,042</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(3,970</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">72</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,381</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,317</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(64</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(193</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(180</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,188</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,137</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(51</td><td style="text-align: left">)</td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>
</p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><b><u>Nine months ended August 24,
2019</u></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>As Reported</b><p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u> </u></b></p> <p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><b><u></u></b></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">Balance without</p>
<p style="margin-top: 0; margin-bottom: 0">adoption of</p>
<p style="margin-top: 0; margin-bottom: 0">Topic 606</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><b>Effect of change</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-left: 5.4pt">Net sales</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,966</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">17,414</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(552</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Cost of goods sold</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(10,138</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(9,769</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">369</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Income before taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,427</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(183</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Income tax</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">365</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">327</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(38</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Net Income</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,245</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,100</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(145</td><td style="text-align: left">)</td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"><b> </b></p>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">8/24/2019</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">8/25/2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font: 9pt Arial, Helvetica, Sans-Serif; padding-left: 5.4pt">Microcircuits</td><td style="width: 8%; font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">5,660</td><td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">3,121</td><td style="width: 1%; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-left: 5.4pt">Optoeletronics</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">4,730</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">6,559</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Sensors and Displays</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">7,576</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">4,162</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,966</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Timing of revenue recognition</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Recognized at a point in time</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,414</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Recognized over time</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">552</td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">    Total Revenue</td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">17,966</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 9pt Arial, Helvetica, Sans-Serif"> </td>
<td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: right">13,842</td><td style="font: 9pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 9pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: justify"> </p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Buildings....................................................................................................................................................15</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Facility improvements.........................................................................................................................	8-15</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Machinery and equipment.................................................................................................................	5-10</p>
<p style="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">	Furniture and fixtures	...........................................................................................................................5-8</p>
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2019-02-08
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MICROPAC INDUSTRIES INC
0000065759
10-Q
2019-08-24
false
--11-30
Yes
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Non-accelerated Filer
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Q3
2019
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