Schmitt Industries, Inc. (SMIT): Business Model Canvas [Dec-2025 Updated]

You're looking at a truly unique setup with Schmitt Industries, Inc. (SMIT), and honestly, it's a fascinating puzzle for any analyst. Forget simple models; this company juggles high-precision laser measurement technology-their Acuity segment-with a premium, handcrafted ice cream brand, Ample Hills. When you see the last reported revenue clocking in at \$9.89 million against significant overhead like \$15.64 million in SG&A (based on FY 2022 figures, as the required 2025 data isn't yet public), you immediately see the strategic tension here. This dual-segment structure, blending industrial tech with consumer goods, presents distinct risks and opportunities that demand a deep dive into their Business Model Canvas to see how they manage the disconnect. Keep reading below to see the full nine-block breakdown of this complex operation.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Key Partnerships

You're looking at the structure of Schmitt Industries, Inc.'s alliances, which is key to understanding how they manage their diverse operations spanning precision measurement and premium ice cream. Honestly, finding the latest 2025 partnership financials is tough since the most recent deep dives I can pull are from earlier filings, but we can map out the known relationships with the hard numbers we do have.

The Measurement Segment, which houses the Acuity laser measurement products and the Xact remote monitoring line, relies heavily on external channels for global reach. Historically, for the Acuity line, Schmitt Industries used distributors for promotion and sales in international markets like China, Taiwan, Japan, and Korea. The Xact product line, which monitors liquid levels via satellite, also utilizes distributors for selected markets. The Measurement Segment as a whole generated approximately $4M of revenue in Fiscal 2020, which gives you a baseline for that part of the business before any potential 2025 growth or restructuring.

Here's a look at the known distribution and customer base for the Measurement Segment:

Regarding the ice cream side, Schmitt Industries, Inc. uses its manufacturing capacity to support its retail and wholesale efforts through third-party arrangements. This co-packing activity leverages their factory in Brooklyn, New York. For context on the scale of the Ice Cream Segment, the revenue for Fiscal 2021 was $4,043,436. The overall company revenue reported in the fiscal year ending May 31, 2022, was $9.89M.

The Ice Cream Segment's co-packing arrangements are an important way to maximize factory utilization. You should keep an eye on how this segment's utilization rate translates into margin improvement, especially since the segment was not profitable at the time of the Ample Hills acquisition.

The structure of the Measurement Segment's alliances is critical for market penetration:

• Acuity laser sensors are chosen by integrators, machine builders, and automation engineers.
• Acuity products are used in demanding applications like steel mill width measurement.
• Xact systems monitor tanks ranging from 125 gallons up to 90,000 gallons.
• The Measurement Segment historically aimed for 25% EBITDA margins on projected $8 million in sales by 2026, suggesting partnership efficiency is baked into that target.

Finance: draft 13-week cash view by Friday.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Key Activities

Schmitt Industries, Inc. focuses its key activities across two distinct, non-synergistic segments: the Measurement Segment and the Ice Cream Segment. The Measurement Segment involves the core engineering and production functions for its technology lines. You are defintely looking at two primary technology focuses here.

The core activities within the Measurement Segment are:

• Manufacturing precision laser and confocal chromatic white light sensors under the Acuity product line.
• Developing and supporting ultrasonic-based remote tank monitoring technology, the Xact product line, for Internet of Things environments.

The financial scale of the Measurement Segment's activities, based on the last fully reported fiscal year data (FY ended May 31, 2022), shows the following operational context:

The Ice Cream Segment's key activities center on food production and direct-to-consumer sales. This involves manufacturing, wholesaling, and retailing ice cream and related products. The manufacturing activity is conducted in the Company's 15,000 square foot Red Hook Factory in Brooklyn, New York. Retail sales generation, as of the last reported count, came from 11 separate retail locations across New York, New Jersey, and California, supplemented by e-commerce and wholesale channels.

A significant activity is the management of this portfolio of two separate business segments. This management function oversees the distinct operational requirements of high-precision measurement technology and consumer packaged goods/retail. The market's current valuation perspective on this portfolio is reflected in the stock price as of December 3, 2025, which stood at $0.0150 per share. The company had 3.79M shares outstanding as of July 2021.

• Managing the Acuity laser/sensor product line development and sales.
• Supporting the Xact tank monitoring product line and related monitoring revenues.
• Manufacturing ice cream from scratch at the Brooklyn facility.
• Operating 11 retail scoop shops for direct sales and community events.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Key Resources

You're looking at the core assets Schmitt Industries, Inc. (SMIT) relies on to deliver its value propositions across the Measurement and Ice Cream Segments. Honestly, finding the absolute latest 2025 figures is tough, so I'm grounding this in the most recent publicly verifiable data points, primarily from the Fiscal Year Ended May 31, 2022, filings and related disclosures, as required.

Patented or proprietary ultrasonic and laser measurement technology.

The Measurement Segment's value is tied directly to its intellectual property, specifically the Acuity and Xact product lines. The Acuity line uses laser and white light sensor technology, employing both triangulation and time-of-flight measurement principles for high precision. The Xact line is built on ultrasonic measurement technology for remote tank monitoring.

What this intellectual property represents in terms of current patent count or specific 2025 valuation isn't public, but we can look at the last reported R&D investment:

Brooklyn, NY ice cream manufacturing facility and retail locations (11 stores).

The Ice Cream Segment centers around the Ample Hills Creamery operations. The manufacturing base is the 15,000 square foot Red Hook Factory in Brooklyn, New York, where the company pasteurizes milk, cream, sugar, and eggs on-site, a key differentiator noted in prior reports. This facility also houses an interactive ice cream museum and party rooms.

The retail footprint, as detailed in segment reporting, includes a network of stores across New York, New Jersey, and California. The last comprehensive count indicated:

• Retail Locations Network Size: 11 individual retail locations (as of Fiscal 2021 reporting).
• Geographic Spread: New York, New Jersey, and California.
• Facility Note: First company to pasteurize on-site in New York City, registered as a dairy plant.

Specialized engineering and R&D talent for the Measurement Segment.

This segment requires highly specialized personnel to maintain and advance the Acuity and Xact technologies. While a specific headcount for this talent pool isn't disclosed, the segment's historical revenue performance gives you a sense of scale relative to the asset base. The segment's revenue has seen fluctuations, which directly impacts the need for and retention of this specialized workforce.

Here's how the Measurement Segment revenue trended, showing the environment for that talent:

The segment's revenue in Fiscal 2021 accounted for 48.6% of the total consolidated revenue of $7,864,350 for that year. It's a lean, specialized group supporting high-value technology.

Secure web portal and satellite connectivity infrastructure for Xact data.

The Xact product line's value proposition hinges on its ability to transmit remote tank monitoring data reliably. This requires a dedicated infrastructure for data acquisition and presentation. The system uses satellite connectivity to send time-of-flight data and other configuration information to a secure website for user access.

The key components here are the satellite service contracts and the proprietary secure web portal itself. The cost associated with maintaining this infrastructure is embedded within the Measurement Segment's operating expenses, which management has been focused on stabilizing. The system is designed to serve bulk propane, diesel, jet fuel suppliers, and ammonia users and distributors.

• Data Transmission Method: Satellite connectivity.
• Data Destination: Secure website for display.
• System Users: Bulk fuel and ammonia suppliers/distributors.

The overall company revenue for the fiscal year ending May 31, 2022, was $9.89M, showing significant growth from the 2021 figure, though the segment split for 2022 is not explicitly itemized in the latest available data.

Finance: draft 13-week cash view by Friday.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Value Propositions

You're looking at the core benefits Schmitt Industries, Inc. (SMIT) delivers across its distinct business lines. Honestly, the latest publicly available financials are a bit dated, but they give us a baseline for the scale of these value propositions as of the last reported periods.

The Measurement Segment, which houses both Acuity and Xact, showed a combined revenue of approximately $1.05M for the third fiscal quarter of 2022, while the Ice Cream Segment (Ample Hills) contributed $0.97M in the same period. The overall trailing twelve-month revenue for Schmitt Industries, Inc. as of May 30, 2022, was reported at $9.89M.

Here's a breakdown of the value propositions tied to the segments, using the most recent segment data we have:

• Measurement: High-accuracy, non-contact distance and dimensional sizing (Acuity).
• Xact: Reliable, remote tank level monitoring for inventory and logistics optimization.
• Ice Cream: Premium, handcrafted ice cream products through retail and e-commerce.
• Reduced delivery costs and run-outs for bulk liquid distributors.

For the Xact offering, the value proposition of reliable monitoring is supported by its recurring revenue stream. In the third quarter of fiscal 2021, Xact monitoring revenue showed a year-over-year growth of 9.4%. This recurring revenue growth is a direct indicator of the value proposition's adoption by bulk liquid distributors seeking better inventory management.

The Ice Cream segment's value proposition centers on premium, handcrafted quality, which is reflected in its gross margin performance. In the third quarter of fiscal 2022, the consolidated gross margin improved to 50.7% year-over-year, partly driven by the scaling of Ample Hills operations.

The overall financial context for Schmitt Industries, Inc. as of December 3, 2025, shows a Market Cap of $56,798, with 3.79M shares outstanding. The reported Gross Margin for the last twelve months was 51.23%.

You can see the segment revenue contribution from the last reported quarter:

The value proposition of Reduced delivery costs and run-outs for bulk liquid distributors is the direct outcome of the Xact service. While a direct dollar figure for cost reduction isn't published as a standalone metric, the growth in Xact's recurring revenue stream, which was 8.6% in Fiscal 2021, shows the market is valuing this remote monitoring capability.

For Acuity, the value is in precision measurement, which is a component of the Measurement Segment revenue. The company has maintained an ongoing research and development program to expand these product lines.

Finance: review the Q3 2022 segment breakdown against the stated strategic focus on Ample Hills by the end of 2022.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Customer Relationships

You're looking at how Schmitt Industries, Inc. (SMIT) connects with its buyers across two very different worlds: artisan ice cream and high-precision measurement. Honestly, the relationship structure is dictated by the segment you're looking at, so we need to break it down by how they sell.

Direct sales and factory support for Acuity OEM and system integrator clients.

For the Acuity laser measurement sensors, the relationship leans heavily on technical partnership. These are not off-the-shelf purchases; they are integrated solutions. While specific 2025 client counts aren't public, historical data suggests the Measurement Segment customer base, which includes Acuity users, was comprised of over 250 companies in prior fiscal years. The support model requires dedicated sales engineers to manage these complex, solution-based relationships, which is key as the industry shifts from pure product sales to tailored problem-solving.

Automated, self-service data access via the Xact secure web portal.

The Xact system, which monitors tank levels via satellite, is designed for high automation. The customer relationship here is largely transactional and self-service once the system is installed. Users, which include major propane distribution companies, access their data through a single web portal. The system provides automated, secure data transmission, minimizing the need for direct, frequent human interaction for data retrieval. The system monitors tanks ranging from 2,000 gallons to 50,000 gallons.

Retail and e-commerce transactions for the Ice Cream Segment.

The Ice Cream Segment, operating as Ample Hills Creamery, relies on high-volume, direct consumer interaction. This is where you see the most traditional customer relationships. The revenue mix shows the scale of these interactions. For the fiscal year ending May 31, 2022, the Ice Cream Segment generated revenue of approximately $8.32 million out of total consolidated revenue of $9.89 million. This segment also supports community-building events like ice cream classes and comedy shows, fostering brand loyalty directly with the end-user.

Dedicated sales engineers for US Measurement Segment territory.

The direct sales force for the Measurement Segment is structured territorially within the US. This structure supports the direct sales to OEM and system integrator clients mentioned above. The company, as a whole, had an employee count of approximately 157 as of the last reported period, a small team supporting both the high-touch Measurement sales and the retail/wholesale Ice Cream operations. The sales engineers are the primary human touchpoint for the industrial Measurement Segment.

Here's a quick look at the most recent reported revenue breakdown by segment, which reflects the relative importance of each customer base:

The customer experience in the Measurement Segment is supported by technology, where users access data through the Xact portal, which archives fill level data and allows users to set measurement times individually for each tank.

The key relationship drivers for Schmitt Industries, Inc. are:

• Direct technical consultation for Acuity laser sensor integration.
• Automated, secure data delivery for Xact remote tank monitoring.
• In-person retail experience and community engagement for Ample Hills.
• Dedicated field support from sales engineers for US Measurement clients.

Finance: draft 13-week cash view by Friday.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Channels

You're looking at how Schmitt Industries, Inc. gets its Acuity sensors, Xact systems, and Ample Hills ice cream into the hands of customers. It's a bifurcated approach, mixing high-tech B2B sales with consumer retail and wholesale.

For the Measurement Segment, the channel strategy relies on direct engagement for specialized products. Acuity laser measurement sensors utilize seasoned sales engineers to directly manage the US sales territory, while distributors handle international sales and support. The Xact Satellite Remote Tank Monitors are sold directly to bulk fuel suppliers and distributors.

The Xact system's direct-to-customer channel includes major regional and national players in the propane and fuel industry. These customers are the backbone for the satellite telemetry service.

The Ice Cream Segment uses a mix of owned retail, wholesale distribution, and direct online sales. As of the structure you outlined, the retail footprint includes 11 Ample Hills Creamery retail stores spread across NY, NJ, and CA. The wholesale network focuses on the Northeast region for broader product placement.

The e-commerce platform supports nationwide sales for the ice cream products, complementing the physical retail and wholesale channels.

Here's a quick look at the quantified elements we have for these channels, using the latest available figures, which are primarily from the 2022 fiscal year for context:

The direct sales force for Acuity sensors is supported by a structure where US sales are managed by seasoned sales engineers, ensuring technical expertise is part of the sales process. The Xact systems are sold directly to large, regional, and local fuel distributors, with specific named customers including Superior Propane (Canada), Suburban Propane (U.S.), AmeriGas (U.S.), Dassel Petroleum (U.S.) and TermoGas (Mexico).

For the consumer side, the wholesale distribution network for ice cream products is concentrated in the Northeast. The e-commerce platform extends the reach of the Ample Hills brand nationwide, though historical pre-pandemic annual sales for the segment were reported at more than $10 million. The retail channel, as specified, involves 11 physical stores.

The entire company employed 157 people as of the last reported data. The scale of the Measurement Segment alone generated approximately $4M in revenue in 2020.

• Direct sales force and regional representatives manage Acuity sensor territories.
• Xact systems utilize direct sales to fuel distributors like Superior Propane.
• Ample Hills Creamery operates 11 retail locations across NY, NJ, and CA.
• Wholesale distribution network covers ice cream products in the Northeast.
• E-commerce platform enables nationwide ice cream sales.

Finance: draft 13-week cash view by Friday

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Customer Segments

You're looking at the customer base for Schmitt Industries, Inc. (SMIT) across its distinct operating units. Honestly, segmenting this business requires looking at the three main operational areas: the Measurement Segment (Acuity and Xact), and the Ice Cream Segment (Ample Hills).

The Measurement Segment serves highly technical industrial and system-level buyers. The Acuity product line specifically targets Original Equipment Manufacturers (OEMs) and System Integrators. These customers use Acuity's laser and white light sensors as primary components in their own machinery and solutions. The industrial sectors relying on Acuity include factory automation, surface profile scanning, crane positioning, road profiling, tire production, and semiconductor manufacturing.

The Xact product line focuses on remote monitoring for bulk liquid distribution. Its customer base includes large, regional, and local propane distributors, as well as diesel, jet fuel suppliers, and ammonia users. The Xact system is designed for tanks ranging from 125 gallons up to 90,000 gallons.

The Ice Cream Segment, operating as Ample Hills, targets a completely different set of customers. This includes direct retail consumers through its physical locations and e-commerce, as well as catering clients and wholesale partners.

Here's a look at what we know about the customer base size and revenue contribution from the latest available filings. Remember, the fiscal year for the detailed revenue figures below ends in May.

To give you a sense of scale, the Measurement Segment historically served over 250 companies across its Acuity and Xact product lines. For the Ice Cream Segment, revenues in Fiscal 2021 were $4,043,436, generated through 11 retail locations in New York, New Jersey, and California, plus wholesale and e-commerce.

It's important to note customer concentration risk. In Fiscal 2020, a single customer accounted for 33.8% of total revenues for the combined entity at that time. The company's overall total revenue was $5.6 million in Fiscal 2021 and grew to $9.89 million in Fiscal 2022, showing significant top-line movement post-acquisition.

The customer engagement strategy for the Measurement Segment involves direct sales and marketing managers overseeing worldwide efforts, including managing distributors in specific markets. Trade shows are also a key touchpoint for reaching target markets.

• Acuity customers select products for demanding applications like:
  • Thickness measurement.
  • Displacement measurement.
  • Crane positioning.
• Xact customers include major propane distributors such as:
  • Suburban Propane (U.S.).
  • AmeriGas (U.S.).
  • Superior Propane (Canada).
• Ample Hills customer touchpoints include:
  • Retail sale from 11 separate locations.
  • E-commerce and wholesale channels.
  • Catering events and community-building events.

Finance: draft 13-week cash view by Friday.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Cost Structure

You're looking at the cost side of Schmitt Industries, Inc. (SMIT) and it's clear that the cost structure is heavily weighted toward the cost of the goods themselves and the overhead required to run the business, especially given the dual nature of manufacturing and retail operations.

The High cost of goods sold (COGS) is a major factor, reflecting the inputs for both the precision measurement products and the food production side with Ample Hills Creamery. For the fiscal year ended May 31, 2022, the Cost of Revenue stood at $4.82 million, which was 48.74% of the Total Revenue of $9.89 million for that period. This high ratio suggests that material and direct labor costs significantly impact profitability across both segments.

The overhead costs are also substantial. Selling, General, and Administrative (SG&A) expenses were reported at $15.64 million for the fiscal year ending May 31, 2022. Honestly, this figure dwarfs the revenue for that year, indicating significant fixed and variable operating expenses relative to the sales achieved in FY 2022.

Here's a quick look at the key expense components from the latest available annual data, which is for the fiscal year ending May 31, 2022, presented in millions of USD:

Research and Development (R&D) expenses, while necessary for the Measurement Segment's Acuity® and Xact® product lines, were relatively small in FY 2022, totaling $40,000 (or $0.04 million). This is down from $70,000 in FY 2021. It's a minor cost component compared to COGS and SG&A.

The operating costs associated with the Ample Hills retail footprint are embedded within the broader SG&A structure, but it's important to note the physical footprint. Schmitt Industries, Inc. manages the retail sale of ice cream products from 11 separate retail locations across New York, New Jersey, and California. These locations incur costs related to:

• Lease payments for the physical store spaces.
• In-store labor and management salaries.
• Utilities and maintenance for the retail outlets.
• Local marketing efforts for the scoop shops.

If onboarding takes 14+ days, churn risk rises, and similarly, if lease renewals for these 11 locations are unfavorable, it will directly pressure the already significant SG&A line item. Finance: draft 13-week cash view by Friday.

Schmitt Industries, Inc. (SMIT) - Canvas Business Model: Revenue Streams

You're looking at how Schmitt Industries, Inc. (SMIT) actually brings in money, and honestly, it's a tale of two very different businesses right now. The revenue streams are clearly split between high-precision technology and a beloved consumer brand. We don't have the final 2025 numbers yet, so we'll anchor this discussion on the last fully reported fiscal year and the most detailed segment data available.

The total revenue for the last reported fiscal year, FY 2022 (ending May 31, 2022, based on available filings), was $9.89 million. This figure represents the aggregate of the Measurement segment and the Ice Cream segment operations.

Here is a breakdown of the primary revenue sources, using the Last Twelve Months (LTM) data ending May 30, 2022, to illustrate the segment contributions:

To give you a clearer picture of the segment weighting as of that period, the Ice Cream business was the overwhelming driver of the top line:

• Ice Cream Segment Revenue (LTM): $8.32 million.
• Measurement Segment Revenue (LTM): $1.58 million.

The Measurement segment itself, which houses both Acuity and Xact, showed some internal shifts even within that timeframe. For instance, in the first quarter of FY2022, the Measurement segment revenue was $0.80 million, representing a year-over-year decline of 20.1%. That decline was partially offset by a small increase in Xact monitoring revenue of 3.2% year-over-year for that quarter. The Ice Cream segment, conversely, surged in that same quarter, bringing in $2.96 million, which was up 489.5% year-over-year. This suggests the revenue mix is heavily weighted toward the consumer side, which you need to keep in mind when modeling future performance. If onboarding takes 14+ days, churn risk rises, which is a risk for Xact subscriptions, but the retail sales are more immediate.

The revenue from the Measurement segment is derived from two distinct product lines, Acuity and Xact, which Schmitt Industries, Inc. designs, manufactures, and sells. Acuity focuses on laser and white light sensor distance measurement and dimensional sizing products. Xact provides ultrasonic-based remote tank monitoring products and related monitoring services, tapping into the Internet of Things environment. The Ice Cream segment revenue streams are more varied, including direct-to-consumer sales from retail locations, wholesale, and co-packing agreements.

Finance: draft 13-week cash view by Friday.