UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OF 1934 For the quarterly period ended August 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-3498 TAYLOR DEVICES INC (Exact name of registrant as specified in its charter) New York 16-0797789 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 90 Taylor Drive, North Tonawanda, ...

PART I [Business](index=4&type=section&id=Item%201.%20Business.) Taylor Devices, Inc. designs, manufactures, and markets shock absorption, rate control, and energy storage devices for diverse sectors - The company's main business is the design, manufacture, and marketing of shock absorption, rate control, and energy storage devices for various industries[13](index=13&type=chunk) - Principal product categories include Seismic Dampers, Fluidicshoks®, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, Vibration Dampers, Machined Springs, and Custom Actuators[14](index=14&type=chunk)[15](index=15&type=chunk) - In fiscal year 2023, sales to **five customers** accounted for approximately **30% of net sales**[21](index=21&type=chunk) R&D Expense | R&D Expense | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Company-funded | $1,097,000 | $999,000 | | Defense-sponsored | $581,000 | $334,000 | [Risk Factors](index=6&type=section&id=Item%201A.%20Risk%20Factors.) As a smaller reporting company, Taylor Devices, Inc. is not required to provide this information - The company is not required to provide risk factor information as it qualifies as a smaller reporting company[30](index=30&type=chunk) [Unresolved Staff Comments](index=6&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) There are no unresolved staff comments - Not applicable[31](index=31&type=chunk) [Properties](index=6&type=section&id=Item%202.%20Properties.) The company's North Tonawanda facilities, over 100,000 sq ft, are pledged to M&T Bank, restricting sale or lease - The company owns production facilities totaling more than **54,000 square feet** on Tonawanda Island and two additional industrial buildings totaling **46,000 square feet** in North Tonawanda, New York[32](index=32&type=chunk) - The company's real properties are subject to a negative pledge agreement with its lender, M&T Bank, preventing their sale, lease, or mortgage as long as credit facilities are outstanding[33](index=33&type=chunk) [Legal Proceedings](index=6&type=section&id=Item%203.%20Legal%20Proceedings.) The company is a Third-Party Defendant in a lawsuit concerning 432 Park Condominium defects, which it disputes - The company has been named as a Third-Party Defendant in a lawsuit related to the 432 Park Condominium in New York City[34](index=34&type=chunk) - The lawsuit alleges over **1,500 construction and design defects**. The company supplied **16 Viscous Damping Devices (VDDs)** for the building's Tuned Mass Damper (TMD) system[35](index=35&type=chunk)[38](index=38&type=chunk) - Management disputes the allegations and believes the company met all contractual requirements. Due to limited discovery, it is not practical to quantify likely damages[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Mine Safety Disclosures](index=7&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Not applicable[45](index=45&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=8&type=section&id=Item%205.%20Market%20For%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) The company's common stock trades on NASDAQ under TAYD; no dividends were paid, and the share repurchase program is terminated - The company's common stock trades on the NASDAQ Capital Market under the symbol TAYD[48](index=48&type=chunk) - No cash or stock dividends have been declared during the last two fiscal years[51](index=51&type=chunk) - A shareholder rights plan was adopted in **2018** to deter coercive takeover tactics and will expire in **2028**[52](index=52&type=chunk)[53](index=53&type=chunk) - The company's share repurchase agreement has been terminated, with no shares purchased since August 2011[54](index=54&type=chunk) [Selected Financial Data](index=9&type=section&id=Item%206.%20Selected%20Financial%20Data.) As a smaller reporting company, Taylor Devices, Inc. is not required to provide this information - The company qualifies as a smaller reporting company and is not required to provide selected financial data[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) FY2023 net revenue rose 30% to $40.2M, net income 181%, with gross margin at 40% and backlog at $32.5M [Application of Critical Accounting Policies and Estimates](index=10&type=section&id=Application%20of%20Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgment in accounts receivable, inventory, revenue recognition, and deferred tax assets - For long-term contracts, revenue is recognized over time using costs incurred relative to total estimated costs. In FY2023, **61%** of revenue was recognized this way, compared to **60%** in FY2022[67](index=67&type=chunk) - The company recorded a provision for potential inventory obsolescence of **$295,000** in FY2023, compared to zero in FY2022. Inventory disposals were **$322,000** in FY2023[63](index=63&type=chunk) - Management believes it is more likely than not that the deferred tax assets of **$1,583,000** will be realized, which requires generating approximately **$7.5 million** of future taxable income[70](index=70&type=chunk) [Results of Operations](index=12&type=section&id=Results%20of%20Operations) FY2023 net revenue grew 30% to $40.2M, net income 181%, with gross margin at 40% and backlog reaching $32.5M Key Financial Metrics | Financial Metric | FY 2023 | FY 2022 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $40,199,000 | $30,867,000 | $9,332,000 | 30% | | Gross Profit | $16,066,000 | $9,627,000 | $6,439,000 | 67% | | Gross Margin | 40% | 31% | +9 pts | - | | Net Income | $6,287,358 | $2,239,423 | $4,048,000 | 181% | Sales by Customer Group | Sales by Customer Group (% of Total) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Industrial | 10% | 7% | | Structural | 51% | 53% | | Aerospace / Defense | 39% | 40% | - The sales order backlog increased to **$32.5 million** at May 31, 2023, from **$23.7 million** at May 31, 2022. Aerospace/defense orders constitute **81% of the current backlog**, up from **41%** in the prior year[79](index=79&type=chunk) - Selling, general and administrative (SG&A) expenses increased **33%** to **$8.16 million**, primarily due to higher personnel costs[82](index=82&type=chunk) [Capital Resources, Line of Credit and Long-Term Debt](index=15&type=section&id=Capital%20Resources,%20Line%20of%20Credit%20and%20Long-Term%20Debt) Primary liquidity is cash from operations; FY2023 capital expenditures doubled to $3.36M, with a $10M credit line unused - Capital expenditures were **$3,359,000** in FY2023, a significant increase from **$1,392,000** in FY2022[91](index=91&type=chunk) - The company has a **$10,000,000 bank demand line of credit** with no outstanding balance at May 31, 2023. The interest rate benchmark will switch from LIBOR to SOFR effective July 1, 2023[92](index=92&type=chunk) Balance Sheet Metrics | Balance Sheet Metrics | May 31, 2023 | May 31, 2022 | Change % | | :--- | :--- | :--- | :--- | | Accounts receivable | $5,554,000 | $4,467,000 | 24% | | CIEB (Asset) | $4,124,000 | $3,336,000 | 24% | | BIEC (Liability) | $1,992,000 | $1,123,000 | 77% | | DSO (Days) | 47 | 42 | +5 days | [Quantitative and Qualitative Disclosures About Market Risk](index=18&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a smaller reporting company, Taylor Devices, Inc. is not required to provide this information - The company is not required to provide this information as it qualifies as a smaller reporting company[105](index=105&type=chunk) [Financial Statements and Supplementary Data](index=18&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) This section states that the required financial statements and supplementary data are included in the report, commencing on page 26 - The financial statements and supplementary data are included in the Form 10-K, starting on page 26[106](index=106&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=18&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure.) The company reported no disagreements with its accountants on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure - There have been no disagreements with the company's accountants that require disclosure[107](index=107&type=chunk) [Controls and Procedures](index=18&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and internal control over financial reporting were effective as of May 31, 2023, with no material changes - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of May 31, 2023[108](index=108&type=chunk) - Management assessed internal control over financial reporting using the **2013 COSO framework** and concluded it was effective as of May 31, 2023[109](index=109&type=chunk) - No changes in internal controls over financial reporting occurred during the fiscal year that materially affected, or are reasonably likely to materially affect, the company's control over financial reporting[110](index=110&type=chunk) [Other Information](index=18&type=section&id=Item%209B.%20Other%20Information.) There is no other information to report - None[111](index=111&type=chunk) PART III [Directors, Executive Officers, Corporate Governance, Compensation, Security Ownership, and Related Transactions](index=18&type=section&id=Items%2010-14) Information for Items 10-14 is incorporated by reference from the company's Proxy Statement for the Annual Meeting on October 20, 2023 - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the Company's Proxy Statement, which will be filed within **120 days** of the fiscal year end[113](index=113&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=19&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules.) This section lists all documents filed as part of the 10-K report, including financial statements and various exhibits - Lists the financial statements and various exhibits filed with the report, including corporate governance documents, material contracts, and officer certifications[116](index=116&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk) [Form 10-K Summary](index=22&type=section&id=Item%2016.%20Form%2010-K%20Summary.) No summary is provided under this item - None[123](index=123&type=chunk) Consolidated Financial Statements [Report of Independent Registered Public Accounting Firm](index=26&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Lumsden & McCormick, LLP issued an unqualified opinion, highlighting critical audit matters in long-term contract revenue and inventory valuation - The auditors, Lumsden & McCormick, LLP, issued an unqualified opinion, stating the financial statements are presented fairly in all material respects[134](index=134&type=chunk) - A Critical Audit Matter was identified related to revenue recognition for long-term contracts due to the significant variability and judgment involved in estimating costs to completion[140](index=140&type=chunk) - A second Critical Audit Matter was identified related to the valuation of inventory, given the significant judgments required to estimate potential obsolescence[142](index=142&type=chunk)[143](index=143&type=chunk) [Consolidated Balance Sheets](index=29&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $57.9M, driven by short-term investments; liabilities and equity also increased reflecting profitability Consolidated Balance Sheet Highlights (In thousands) | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $3,575 | $22,517 | | Short-term investments | $24,515 | $1,097 | | Total current assets | $44,378 | $37,977 | | Total assets | $57,881 | $49,219 | | **Liabilities & Equity** | | | | Total current liabilities | $7,788 | $5,964 | | Total stockholders' equity | $50,093 | $43,255 | [Consolidated Statements of Income](index=30&type=section&id=Consolidated%20Statements%20of%20Income) FY2023 net sales increased 30% to $40.2M, with net income surging 181% to $6.3M, or $1.79 per share Consolidated Income Statement Highlights (In thousands, except per share data) | :--- | :--- | :--- | | Sales, net | $40,199 | $30,867 | | Gross profit | $16,066 | $9,627 | | Operating income | $6,809 | $2,473 | | Net income | $6,287 | $2,239 | | Basic EPS | $1.79 | $0.64 | | Diluted EPS | $1.77 | $0.64 | [Consolidated Statements of Cash Flows](index=32&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) FY2023 operating cash flow was $7.7M, but investing activities, mainly short-term investments, reduced cash by $18.9M Consolidated Cash Flow Highlights (In thousands) | :--- | :--- | :--- | | Net cash from operating activities | $7,707 | $3,309 | | Net cash from investing activities | ($26,782) | ($1,389) | | Net cash from financing activities | $133 | $16 | | Net change in cash and cash equivalents | ($18,942) | $1,935 | | Cash and cash equivalents - ending | $3,575 | $22,517 | [Notes to Consolidated Financial Statements](index=33&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail operations, revenue streams, asset/liability composition, credit line terms, employee benefits, and legal proceedings - **81%** of FY2023 revenue was from customers in the United States, with **11%** from Asia[153](index=153&type=chunk) - At year-end, there were **22 projects** in progress with an aggregate remaining contract value of **$18.1 million**, which is expected to be recognized mostly in fiscal 2024[182](index=182&type=chunk) - The company has a **$10 million bank demand line of credit**, secured by a negative pledge on property, with no amount outstanding at year-end[187](index=187&type=chunk) - The company maintains a **401(k) retirement plan**, with expenses of **$371,881** in FY2023 and **$313,269** in FY2022[205](index=205&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the quarterly period ended February 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-3498 TAYLOR DEVICES INC (Exact name of registrant as specified in its charter) New York 16-0797789 (State or other jurisdiction of inco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-3498 TAYLOR DEVICES INC (Exact name of registrant as specified in its charter) New York 16-0797789 (State or other jurisdiction ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q3 2022 financial statements show significant profitability growth, with changes in assets, equity, and negative operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of August 31, 2022, shows a slight increase in total assets and stockholders' equity, alongside a decrease in total liabilities Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | August 31, 2022 | May 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$49,423,600** | **$49,219,061** | | Total Current Assets | $37,770,997 | $37,977,019 | | **Total Liabilities** | **$5,130,784** | **$5,963,907** | | Total Current Liabilities | $5,130,784 | $5,963,907 | | **Total Stockholders' Equity** | **$44,292,816** | **$43,255,154** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended August 31, 2022, the company reported increased net sales and a substantial surge in net income and earnings per share Condensed Consolidated Statements of Income (Unaudited) | Metric | Three months ended Aug 31, 2022 | Three months ended Aug 31, 2021 | | :--- | :--- | :--- | | Sales, net | $9,090,699 | $7,307,737 | | Gross profit | $3,384,757 | $1,872,179 | | Operating income | $1,178,373 | $118,140 | | **Net income** | **$1,002,371** | **$181,877** | | **Basic and diluted EPS** | **$0.29** | **$0.05** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased for the three months ended August 31, 2022, primarily driven by net income - Total stockholders' equity grew from **$40,983,918** as of August 31, 2021, to **$44,292,816** as of August 31, 2022[9](index=9&type=chunk) - The increase in retained earnings was due to a net income of **$1,002,371** for the three-month period ended August 31, 2022[9](index=9&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities and investing activities led to a net decrease in cash and cash equivalents for the three months ended August 31, 2022 Net Change in Cash and Cash Equivalents (Unaudited) | Activity | Three months ended Aug 31, 2022 | Three months ended Aug 31, 2021 | | :--- | :--- | :--- | | Net operating activities | $(30,886) | $29,200 | | Net investing activities | $(834,604) | $(467,801) | | Net financing activities | $35,291 | $3,833 | | **Net change in cash** | **$(830,199)** | **$(434,768)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes clarify interim financial statement preparation, revenue recognition policies, and inventory composition - In the three months ended August 31, 2022, **61% of revenue** was recognized over time, while **39%** was recognized at a point in time, compared to **66%** and **34%**, respectively, for the same period in 2021[18](index=18&type=chunk) - The company's inventory is primarily composed of work-in-process, which stood at **$5,137,526** as of August 31, 2022[14](index=14&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=11&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 FY2023 performance to increased net revenues, improved gross margin, and growth in key market sectors [Results of Operations](index=11&type=section&id=Results%20of%20Operations) Net revenues and gross profit significantly increased for the quarter ended August 31, 2022, driven by U.S. sales and specific sector growth, despite a decline in Asia sales Q1 FY2023 vs Q1 FY2022 Performance | Metric | Q1 2022 | Q1 2021 | Change Amount | Change Percent | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $9,091,000 | $7,308,000 | $1,783,000 | 24% | | Gross Profit | $3,385,000 | $1,872,000 | $1,513,000 | 81% | | Gross Margin | 37% | 26% | - | - | - The sales order backlog increased by **19% to $23.0 million** at August 31, 2022, from **$19.4 million** at August 31, 2021[30](index=30&type=chunk) Sales by Geographic Region (% of Total Net Revenue) | Region | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | USA | 82% | 70% | | Asia | 10% | 20% | | Other | 8% | 10% | [Capital Resources and Financial Condition](index=13&type=section&id=Capital%20Resources%20and%20Financial%20Condition) The company's liquidity relies on operations, with increased capital expenditures and a rise in Days Sales Outstanding, though management expects sufficient cash flow - Capital expenditures for the quarter were **$833,000**, compared to **$462,000** in the prior-year period, with commitments for an additional **$1,700,000** over the next twelve months[38](index=38&type=chunk) - Days Sales Outstanding (DSO) increased from **42 days** at May 31, 2022, to **58 days** at August 31, 2022, due to a **31% increase** in the accounts receivable balance[42](index=42&type=chunk)[43](index=43&type=chunk) - Management believes cash flows from operations are sufficient to fund ongoing operations and capital improvements for the next twelve months[49](index=49&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=15&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Taylor Devices, Inc. is exempt from providing market risk disclosures - Smaller reporting companies are not required to provide the information called for by this item[50](index=50&type=chunk) [Controls and Procedures](index=15&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of August 31, 2022, with no material changes to internal controls - Management concluded that as of August 31, 2022, the company's disclosure controls and procedures were effective[51](index=51&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's control over financial reporting[52](index=52&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=16&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no legal proceedings beyond routine litigation incidental to its business - There are no legal proceedings except for routine litigation incidental to the business[53](index=53&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Taylor Devices, Inc. is exempt from providing risk factor disclosures - Smaller reporting companies are not required to provide the information called for by this item[53](index=53&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=16&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not engage in unregistered equity security sales or share repurchases during the fiscal quarter - The Company sold no equity securities during the fiscal quarter ended August 31, 2022 that were not registered under the Securities Act[54](index=54&type=chunk) - No shares were repurchased during the quarter ended August 31, 2022[54](index=54&type=chunk) [Defaults Upon Senior Securities](index=17&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[55](index=55&type=chunk) [Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[55](index=55&type=chunk) [Other Information](index=17&type=section&id=Item%205.%20Other%20Information) The company reports no undisclosed Form 8-K information or material changes to board nomination procedures - None[55](index=55&type=chunk) [Exhibits](index=17&type=section&id=Item%206.%20Exhibits) The report lists various exhibits, including CEO and CFO certifications and XBRL taxonomy documents - Exhibits filed include CEO and CFO certifications and XBRL data files[55](index=55&type=chunk)[56](index=56&type=chunk) Report of Independent Registered Public Accounting Firm [Review of Interim Financial Information](index=18&type=section&id=Review%20of%20Interim%20Financial%20Information) The independent registered public accounting firm reviewed the interim financial information and found no material modifications needed for GAAP conformity - The accounting firm stated: "Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America"[58](index=58&type=chunk) - The review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB) and is substantially less in scope than an audit[60](index=60&type=chunk) Signatures [Authorization](index=19&type=section&id=Authorization) The report was duly signed and authorized on September 30, 2022, by the Chief Executive Officer and Chief Financial Officer - The report was signed on September 30, 2022, by the Chief Executive Officer and Chief Financial Officer[64](index=64&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 0-3498 TAYLOR DEVICES INC (Exact name of registrant as specified in its charter) NY 16-0797789 (State or other jurisdiction of i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-3498 TAYLOR DEVICES INC (Exact name of registrant as specified in its charter) New York 16-0797789 (State or other jurisdiction ...

Financial Performance - Net revenue for the six months ended November 30, 2021, was $15,066,000, representing a 44% increase compared to $10,477,000 in the same period of 2020[29] - Gross profit for the six months ended November 30, 2021, was $3,980,000, with a gross profit margin of 26%, up from 20% in the prior year[30] - For the three months ended November 30, 2021, net revenue was $7,758,000, a 64% increase from $4,717,000 in the same period of 2020[39] - Gross profit for the three months ended November 30, 2021, was $2,389,000, with a gross profit margin of 31%, significantly higher than 12% in the prior year[40] - Operating income for the six months ended November 30, 2021, was $899,000, compared to an operating loss of $478,000 in the same period of the prior year[34] Revenue Sources - Revenues from long-term construction projects increased by 185% compared to the previous year, while revenues from non-projects decreased by 29%[29] - Total sales within the U.S. increased by 53% year-over-year, with significant growth in sales to structural customers[29] Expenses and Costs - Selling, general and administrative expenses rose by 18% to $3,081,000, accounting for 20% of net revenues, down from 25% in the prior year[33] - The company recognized $126,000 in stock option compensation costs for the six months ended November 30, 2021, compared to $50,000 in the same period of 2020[46] - The company recorded a provision for potential inventory obsolescence of $90,000, unchanged from the previous year[54] Backlog and Orders - The backlog of open sales orders increased from $15.4 million in November 2020 to $17.0 million in November 2021[31] - As of November 30, 2021, the company reported a backlog of sales orders totaling $17.0 million, down from $22.0 million at the end of the prior year[62] Accounts and Inventory - Accounts receivable increased by 28% to $4,310,000 from $3,380,000 as of May 31, 2021, with an average day's sales outstanding (DSO) rising from 42 days to 50 days[55][56] - Costs and estimated earnings in excess of billings (CIEB) rose by 159% to $3,885,000 compared to $1,500,000 at the end of the prior year, indicating strong project flow[58][59] - The company’s total inventory decreased by 1% to $7,360,000 from $7,448,000, with 87% classified as work in process[52][53] Capital Expenditures - Capital expenditures for the six months ended November 30, 2021 were $560,000, down from $721,000 in the same period of the prior year[51] - The company has commitments for capital expenditures totaling $1,400,000 over the next twelve months[51] Liabilities and Cash Flow - The balance of accounts payable decreased by 16% to $1,503,000 compared to the prior year-end[63] - The company believes its cash flows from operations are sufficient to fund ongoing operations and capital improvements for the next twelve months[64] Stock Information - The closing value per share on NASDAQ at November 30, 2021 was $10.95, with options outstanding and exercisable increasing to 303,000[49]

Revenue and Sales Performance - Net revenue for the three months ended August 31, 2021, was $7,308,000, representing a 27% increase compared to $5,760,000 in the same period of 2020[27]. - The company recorded a 132% increase in revenues from long-term construction projects compared to the previous year, with 26 projects in process versus 19 last year[27]. - Total sales in the U.S. increased by 34%, while sales to Asia decreased by 9% compared to the prior year[27]. Profitability and Expenses - Gross profit for the same period was $1,590,000, with a gross margin of 22%, down from 27% in the prior year, attributed to increased R&D, material, and labor costs[28]. - Selling, general and administrative expenses rose to $1,472,000, an 8% increase from $1,363,000 in the previous year, with outside commissions decreasing by 10%[31]. - Operating income for the three months ended August 31, 2021, was $118,000, a 38% decrease from $191,000 in the same period last year[32]. Backlog and Orders - The company's backlog increased to 165 open sales orders with a total sales value of $19.4 million, a 50% increase from 110 orders valued at $10.3 million last year[29]. - The backlog of sales orders decreased to $19.4 million from $22.0 million at the prior year-end, with $9.8 million on projects already in progress[50]. Accounts and Inventory Management - Accounts receivable decreased by 18% to $2,756,000 from $3,380,000, while costs and estimated earnings in excess of billings increased by 119% to $3,287,000[44]. - The company's inventory as of August 31, 2021, was $5,467,000, a decrease of 6% from $5,835,000 at the prior year-end[41]. - Accounts receivable decreased by 18% from the prior year-end, totaling $2,756,000 as of August 31, 2021, with a DSO reduction from 42 days to 34 days[45]. Capital Expenditures and Financial Position - Capital expenditures for the three months ended August 31, 2021, were $462,000, up from $244,000 in the same period of the prior year[39]. - Accounts payable increased by 9% to $1,946,000 as of August 31, 2021, while accrued commissions rose by 71% to $460,000 due to increased commissionable sales[51]. - Other current liabilities decreased by 26% to $1,266,000, primarily due to a reduction in customer advance payments[51]. Cash Flow and Liquidity - Management believes cash flows from operations are sufficient to fund ongoing operations and capital improvements for the next twelve months[52]. - The liquidity of the company remains strong, although management is concerned about potential impacts from the COVID-19 pandemic on global economies[54]. - The company has not experienced significant delays in receiving raw materials or components, maintaining strong supply chain management[55]. Project Progress - The aggregate percent complete for projects in progress increased to 47% from 32%[50]. - CIEB balance increased to $3,287,000, more than double the prior year-end balance, with 24% billed to customers in the current fiscal quarter[47]. - The company expects to bill the entire CIEB amount during the next twelve months as projects progress[47].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 31, 2021 Securities registered pursuant to Section 12(b) of the Act: Commission file number 0-3498 TAYLOR DEVICES INC (Exact name of registrant as specified in its charter) New York 16-0797789 (State or other jurisdiction of incorporation or organization) 90 Taylor Drive, North Tonawanda, New York 14120 (Addr ...