Schmitt Industries, Inc. (SMIT): History, Ownership, Mission, How It Works & Makes Money

How does a company like Schmitt Industries, Inc. (SMIT) balance the high-tech world of precision measurement with the artisanal sales of ice cream, all while maintaining a micro-cap valuation of just $56.80k as of late 2025? This unusual structure, split between the Acuity and Xact Measurement segment and the Ample Hills Ice Cream segment, presents a unique-and defintely high-risk-investment profile you need to understand right now. The latest available financials show the Ice Cream segment driving the majority of the top line, with $8.32 million in revenue compared to the Measurement segment's $1.58 million, a dynamic that completely shifts the investment thesis from its industrial roots. Can a company delisted from the NASDAQ and now trading on the OTC Markets truly maximize returns from both laser sensors and Brooklyn-based scoops, or is this a classic value trap?

Schmitt Industries, Inc. (SMIT) History

If you're looking at Schmitt Industries, Inc. (SMIT) today, you're looking at a company that has undergone a dramatic transformation, shifting from a pure-play industrial measurement firm to a holding company with a volatile mix of high-precision tech and consumer ice cream. The core takeaway is that the company's trajectory has been defined by a series of strategic sales and acquisitions, culminating in a highly leveraged position with a tiny market capitalization of only $57 thousand as of November 2025.

Given Company's Founding Timeline

The company's origin is tied to the development of specialized industrial technology in the late 1980s, a time when precision manufacturing was rapidly advancing. It's a classic story of a niche tech firm starting small.

Year established

The company was founded in 1987 in the United States, though it was originally incorporated in British Columbia, Canada, in 1984, before reincorporating in Oregon in 1995 to become an Oregon corporation.

Original location

The executive offices and primary operations have historically been based in Portland, Oregon, which remains the company's headquarters today.

Founding team members

Schmitt Industries, Inc. was founded by Wayne A. Case.

Initial capital/funding

The specific initial capital is not publicly detailed, but the company secured its original balancing equipment technology through a series of agreements between 1987 and 1991, followed by a public offering (IPO) in 1995.

Given Company's Evolution Milestones

The company's history is a clear map of diversification and subsequent divestiture, moving from a single product line to a multi-segment structure, and then shrinking again. It's a bumpy road, to be fair.

Given Company's Transformative Moments

The real story here is the shift from a focused industrial company to a diversified holding company, and the subsequent financial and operational fallout. You need to see the numbers to understand the pressure.

The 2019 divestiture of the SBS business for $10.5 million was the first major pivot, a clear signal from management, then led by Michael Zapata, to monetize a mature asset and re-allocate capital. This move was supposed to fund growth in the remaining high-precision tech lines (Acuity and Xact), but the subsequent acquisition of the ice cream business in 2020 created a deeply incongruous business model.

The most recent transformative period centers on financial distress and operational contraction:

• The Diversification Trap: The company now operates with two completely different segments-precision measurement and ice cream-making it hard for investors to value.
• Financial Instability: The Trailing Twelve Months (TTM) revenue is approximately $9.89 million, but the TTM Net Loss is a steep -$3.28 million. [cite: 6, 9, 10 in previous search] That's a huge burn rate relative to the company's size.
• Debt and Equity Risk: The company's Debt-to-Equity ratio is an alarming 30.38, indicating extreme financial leverage that significantly raises the risk profile for any new investment. [cite: 10 in previous search]
• Compliance Failure: In 2022, the company announced it would restate financial statements due to errors in general and administrative expenses, leading to a notice of non-compliance from Nasdaq. This is a defintely a red flag for internal controls.

The current market capitalization of $57 thousand as of November 2025 reflects the market's severe skepticism regarding the company's ability to navigate its high debt, operational losses, and past governance issues. [cite: 7, 10 in previous search] If you want to understand the current strategy to fix this, you should review the Mission Statement, Vision, & Core Values of Schmitt Industries, Inc. (SMIT).

Schmitt Industries, Inc. (SMIT) Ownership Structure

Schmitt Industries, Inc. (SMIT) is a publicly traded company, though its stock trades on the OTCMKTS (Over-The-Counter Market) at a very low price point of approximately $0.0150 per share as of November 2025. This low-liquidity status, coupled with the company being not current in its SEC reporting obligations, means the ownership structure is dominated by a few large institutional holders and a significant public float.

Schmitt Industries, Inc.'s Current Status

You need to know the playing field, and right now, Schmitt Industries, Inc. is a micro-cap entity with a market capitalization of only about $56,798 as of November 2025. This tiny valuation is a direct result of its operational challenges and its move to the more lightly regulated OTC Markets. The company has approximately 3.79 million shares outstanding. For the trailing twelve months (TTM) leading up to the last available data, the company reported revenue of about $9.89 million but a net loss of approximately $3.28 million. That's a critical point: the company is still losing money, which is why the stock is trading at penny-stock levels.

Schmitt Industries, Inc.'s Ownership Breakdown

The ownership structure is highly concentrated among a few institutional investors, which gives them substantial influence over strategic decisions. For a stock with such low volume, these blocks of shares are defintely powerful. Here's the quick math based on the latest available filings and the 3.79 million shares outstanding: Exploring Schmitt Industries, Inc. (SMIT) Investor Profile: Who's Buying and Why?

Schmitt Industries, Inc.'s Leadership

The company's strategy is steered by a small executive team, which is typical for a company of this size and market cap. The leadership is responsible for navigating the company's dual focus on high-precision measurement products (Acuity and Xact lines) and its legacy ice cream segment.

• Michael R. Zapata: Serves as the Executive Chairman, President & CEO, providing the primary strategic direction.
• Philip Bosco, CPA: Holds the position of Chief Financial Officer (CFO), overseeing the financial reporting and capital structure.

You should note the executive team's performance has been rated poorly in some employee surveys, which can signal internal challenges that often translate to a lack of operational efficiency and poor stock performance. This is a soft-but-real risk factor you need to weigh when evaluating the stock.

Schmitt Industries, Inc. (SMIT) Mission and Values

Schmitt Industries, Inc. operates on a dual-track purpose, blending high-precision industrial technology with a niche consumer product, which translates into a core mission focused on delivering both technical accuracy and diversified value to stakeholders.

You're looking for what truly drives this company beyond its tiny market capitalization of just over $56,798 as of November 2025, and the answer lies in its commitment to specialized measurement and diversified revenue streams.

Schmitt Industries' Core Purpose

The company's cultural DNA is rooted in the technical rigor of its Measurement Segment, where the focus is on non-contact measurement, but it's balanced by the consumer-facing passion of its Ice Cream Segment, Ample Hills Creamery. This is a rare, defintely odd mix, but it defines their values.

Here's the quick math on their focus: the Measurement Segment, through its Acuity and Xact product lines, underpins the company's reputation for engineering excellence, while the Ice Cream segment provides a completely separate consumer revenue stream.

• Precision Engineering: Upholding a standard of accuracy, as seen in the Acuity® laser products which are known for their speed and accuracy in industrial applications.
• Reliable Monitoring: Providing a complete and accurate system for remote tank monitoring through the Xact® product line, ensuring efficiency for users like bulk propane suppliers.
• Diversified Value: Maintaining a portfolio that spans industrial technology and quality consumer products, which is a strategic hedge against single-market volatility.

Official Mission Statement

While Schmitt Industries, Inc. does not publish a single, formal mission statement in the traditional sense, its operational mandate is clear: to be a world leader in providing highly precise test and measurement products, while also offering a diversified portfolio focused on quality consumer products.

This dual focus means the mission is fundamentally about technical mastery in the B2B space and quality experience in the B2C space.

• Technical Mastery: Design, manufacture, and market highly precise test and measurement products for a wide variety of applications.
• Quality Consumer Experience: Own and operate a quality consumer product line, specifically a beloved ice cream manufacturer and retailer.

Vision Statement

The company's vision is less about a single future state and more about sustaining its position as a go-to specialist in niche, high-value markets. The long-term aspiration is to maximize the value of its specialized divisions.

What this estimate hides is the potential for a strategic divestiture of one segment to focus on the other, but for now, the vision is one of diversified strength.

• Sustain Leadership: Remain one of the world leaders in providing highly precise test and measurement products.
• Expand IoT Reach: Continue to provide ultrasonic-based remote tank monitoring products and related services for markets in the Internet of Things (IoT) environment.

For a deeper dive into their corporate philosophy, you can check out Mission Statement, Vision, & Core Values of Schmitt Industries, Inc. (SMIT).

Schmitt Industries Slogan/Tagline

The most actionable slogans come directly from the product lines, as they encapsulate the value proposition of the operating segments.

• Acuity Tagline: Productivity Through Precision.
• Xact Tagline: Any Tank, Anytime, Anywhere.

These taglines show you exactly where the company puts its effort: making industrial processes more efficient and making remote data accessible.

Schmitt Industries, Inc. (SMIT) How It Works

Schmitt Industries, Inc. operates through two starkly different segments: a core Measurement division focused on high-precision industrial sensing, and a consumer-facing Ice Cream division. This unusual structure means the company makes money by both selling specialized, high-tolerance measurement equipment to industrial clients and by manufacturing and retailing artisanal ice cream to consumers.

The company's most recent reported annual revenue, for the fiscal year ending May 31, 2022, was approximately $9.89 million, but this resulted in a net loss of $3.28 million, so the business model is currently under significant financial pressure.

Schmitt Industries, Inc.'s Product/Service Portfolio

Schmitt Industries, Inc.'s Operational Framework

The operational process is bifurcated, reflecting the two distinct business segments, which is defintely a challenge for resource allocation.

The Measurement Segment operates on a classic industrial model, focused on precision engineering and manufacturing. This process involves:

• Design and Fabrication: Developing laser-based (triangulation and time-of-flight) and ultrasonic sensor technology.
• Quality Assurance: Maintaining a high-quality standard, evidenced by the company's ISO 9001 certification.
• Data-as-a-Service: For the Xact line, operations extend beyond hardware sales to include a recurring revenue stream from monitoring services, transmitting tank fill data via satellite to a secure website for display.

The Ice Cream Segment (Ample Hills Creamery) operates on a consumer packaged goods (CPG) and retail model, which is completely different. Its operations include manufacturing the product, managing brick-and-mortar retail locations, running an e-commerce platform for direct sales, and handling catering and wholesale distribution. This segment's value is created through brand recognition and consumer experience.

You can see the Mission Statement, Vision, & Core Values of Schmitt Industries, Inc. (SMIT) for more on their overarching goals.

Schmitt Industries, Inc.'s Strategic Advantages

Schmitt Industries' advantages stem from a mix of technical niche expertise and brand equity, though the low current market capitalization of approximately $58.168 thousand as of November 20, 2025, suggests these advantages are not translating to strong market performance right now.

• Precision Niche: The Acuity brand holds expertise in highly accurate, non-contact dimensional measurement, a critical need in complex industrial applications like steel casting and medical imaging.
• IoT Positioning: The Xact product line is well-positioned in the industrial Internet of Things (IoT) environment, providing a remote monitoring solution that saves customers operational costs on logistics and inventory.
• Dual-Segment Diversification: The company's structure-combining industrial B2B sales with a B2C consumer brand-provides a hedge, though managing two such disparate businesses is a major operational complexity.
• Established Consumer Brand: Ample Hills Creamery, despite its acquisition history, is a known and beloved ice cream manufacturer and retailer in markets like Brooklyn, NY, providing an immediate, established consumer footprint.

Schmitt Industries, Inc. (SMIT) How It Makes Money

Schmitt Industries, Inc. primarily makes money by designing, manufacturing, and selling high-precision test and measurement products for industrial and commercial applications globally, following the divestiture of its non-core ice cream business in 2023.

The company's revenue engine is now singularly focused on the Measurement Segment, which provides sensor and monitoring solutions. The former Ice Cream Segment (Ample Hills Creamery), which was a major revenue driver in prior years, was sold off in mid-2023, meaning the company's total revenue for the fiscal year ending May 31, 2025, is drastically reduced and concentrated in its core industrial technology offerings.

Schmitt Industries, Inc.'s Revenue Breakdown

With the Ice Cream Segment divested, the company's revenue in the fiscal year 2025 is derived entirely from its Measurement Segment, which is composed of two primary product lines: Acuity and Xact. Based on the last reported segment revenue data for the Measurement Segment, the total revenue for this core business was approximately $1.57 million for the fiscal year ended May 31, 2022. We can project the FY 2025 total revenue to be near this mark, as the company is now a single-segment entity.

Here's the quick math: Assuming the Measurement Segment generates approximately $1.57 million in total revenue for FY 2025, the Acuity line contributes roughly $942,000, focusing on industrial distance measurement, while the Xact line adds about $628,000 from propane tank monitoring products and related services.

Business Economics

The economics of the Measurement Segment are fundamentally different from the high-volume, low-margin retail of the previous Ice Cream Segment.

• Pricing Power: Acuity and Xact products are specialized, high-precision instruments (laser triangulation, time-of-flight sensors, ultrasonic monitoring) that serve niche industrial and Internet of Things (IoT) markets. This specialization allows for premium pricing and better gross margins than commodity products.
• Recurring Revenue: The Xact product line, which provides remote tank monitoring solutions, generates a stable stream of recurring service revenue from subscription-based monitoring fees, which is a key economic stabilizer.
• Cost Structure: The business model is capital-light following the divestiture. The primary costs are research and defintely development (R&D) to maintain a technological edge and the cost of goods sold (COGS) for manufacturing the sensors and monitors.
• Market Headwinds: The business faces intense competition from larger, more diversified industrial technology companies like Acuity Brands, Inc. in the broader sensor market, and is sensitive to capital expenditure cycles in the manufacturing and industrial sectors.

The company is now a pure-play industrial tech firm, a sharp pivot from its brief, unprofitable foray into consumer goods. You can dive deeper into the ownership changes and what they mean for the stock here: Exploring Schmitt Industries, Inc. (SMIT) Investor Profile: Who's Buying and Why?

Schmitt Industries, Inc.'s Financial Performance

The most recent publicly available full-year financial data reflects a company in deep transition, with the Ice Cream Segment's losses heavily influencing historical figures. For a true picture of the continuing operations in FY 2025, we must focus on the Measurement Segment's scale.

• Revenue Scale: The total revenue for the continuing operations (Measurement Segment) is small, projected to be around $1.57 million for FY 2025, down significantly from the $9.89 million total revenue reported in FY 2022, due to the sale of the much larger, but loss-making, Ice Cream Segment.
• Net Income: The company has historically been loss-making. For the fiscal year ended May 31, 2022, the company reported a net loss of $3.28 million, largely driven by the Ice Cream Segment's operating loss of $7.6 million. The expectation for FY 2025 is a much smaller net loss, or even a return to profitability, as the major loss center has been eliminated.
• Gross Profit Margin: The Measurement Segment historically operates with a healthy gross margin, as high as 64.1% in some quarters when the Ice Cream Segment was still operating. This margin is crucial for the remaining business, proving the underlying product line is fundamentally sound, even if the scale is small.
• Liquidity: The company's liquidity position has been volatile, often relying on the sale of corporate assets (like Portland properties for $5.1 million and $3.5 million in 2021 and 2022) to fund the Ice Cream Segment's losses. Monitoring cash reserves and operating cash flow is the single most important action item here.

Schmitt Industries, Inc. (SMIT) Market Position & Future Outlook

Schmitt Industries, Inc. is currently a micro-cap entity primarily centered on its niche Measurement Segment, having largely divested its non-core assets following a failed strategic shift and subsequent delisting from Nasdaq in January 2024. The future outlook hinges entirely on maximizing the small, core precision measurement business, which generated only $1.58 million in revenue for the fiscal year ended May 31, 2022, the last reported full-year figure for that segment.

Competitive Landscape

The company's remaining business, Acuity and Xact sensors, operates in the highly fragmented, multi-billion dollar global laser sensor and remote tank monitoring markets. The total laser sensor market alone is projected to reach approximately $2.12 billion in 2025, making Schmitt Industries a fractional competitor.

Opportunities & Challenges

The company's primary opportunity lies in its remaining technology, while its major challenge is surviving as a tiny, delisted entity that has liquidated most assets to cover past losses.

Industry Position

Schmitt Industries holds a microscopic position in the global precision measurement industry. Here's the quick math: in the projected $2.12 billion laser sensor market for 2025, the Measurement Segment's estimated revenue of $1.58 million translates to a market share of roughly 0.075%. That's defintely a niche player, not a market mover.

• Niche Focus: The company's core strength is its Acuity laser and white light sensors, which serve specialized, high-precision distance measurement and dimensional sizing applications.
• Financial Distress: The failure of the Proton Green reverse merger and the closure/sale of the Ice Cream Segment (which was the majority revenue source at $8.32 million in FY2022) has left the company in a precarious financial state, trading over-the-counter (OTCPK) since its Nasdaq delisting.
• Strategic Imperative: The current strategy must focus on aggressively monetizing the Acuity and Xact product lines or finding a new strategic buyer for the remaining assets to maximize shareholder value in its current shell form.

If you're looking for a deeper dive into the shareholder base and why anyone is still holding this stock, you should read Exploring Schmitt Industries, Inc. (SMIT) Investor Profile: Who's Buying and Why?