Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000047307 | |
Entity Registrant Name | CRAWFORD UNITED Corp | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-000147 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-0288470 | |
Entity Address, Address Line One | 10514 Dupont Avenue, Suite 200 | |
Entity Address, City or Town | Cleveland | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44108 | |
City Area Code | 216 | |
Local Phone Number | 243-2614 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 731,848 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,778,892 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,549,468 | $ 1,247,627 |
Accounts receivable less allowance for doubtful accounts | 24,463,040 | 21,884,807 |
Contract assets | 3,219,772 | 3,284,301 |
Inventories less allowance for obsolete inventory | 20,649,773 | 20,176,142 |
Investments | 640,931 | 657,971 |
Prepaid expenses and other current assets | 1,143,835 | 1,522,516 |
Total Current Assets | 51,666,819 | 48,773,364 |
Property, plant and equipment, net | 14,426,506 | 15,213,443 |
Operating right of use asset, net | 8,841,145 | 9,524,280 |
OTHER ASSETS: | ||
Goodwill | 16,453,049 | 16,231,938 |
Intangibles, net of accumulated amortization | 8,567,902 | 9,492,560 |
Other non-current assets | 122,243 | 362,489 |
Total Non-Current Other Assets | 25,143,194 | 26,086,987 |
Total Assets | 100,077,664 | 99,598,074 |
CURRENT LIABILITIES: | ||
Notes payable – current | 811,546 | 1,303,972 |
Bank debt – current | 11,974,749 | 222,222 |
Leases payable – current | 1,671,484 | 1,705,224 |
Accounts payable | 11,346,508 | 14,017,973 |
Unearned revenue | 6,573,441 | 4,354,868 |
Accrued income taxes | 209,154 | 1,239,289 |
Accrued expenses | 3,740,624 | 3,224,188 |
Total Current Liabilities | 36,327,506 | 26,067,736 |
LONG-TERM LIABILITIES: | ||
Bank debt | 0 | 19,224,318 |
Leases payable | 7,420,732 | 8,060,152 |
Deferred income taxes | 1,384,558 | 1,384,558 |
Total Long-Term Liabilities | 9,486,372 | 30,515,433 |
STOCKHOLDERS' EQUITY | ||
Contributed capital | 1,741,901 | 1,741,901 |
Treasury shares | (2,237,027) | (2,125,252) |
Retained earnings | 44,638,722 | 34,581,171 |
Total Stockholders' Equity | 54,263,786 | 43,014,905 |
Total Liabilities and Stockholders' Equity | 100,077,664 | 99,598,074 |
Common Class A [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common shares | 8,654,668 | 7,351,563 |
Common Class B [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common shares | 1,465,522 | 1,465,522 |
Notes Payable Excluding Paycheck Protection Program Cares Act [Member] | ||
LONG-TERM LIABILITIES: | ||
Notes Payable, Noncurrent | $ 681,082 | $ 1,846,405 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - shares | Sep. 30, 2023 | Dec. 31, 2022 |
Common Class A [Member] | ||
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 2,832,966 | 2,791,449 |
Treasury shares, issued (in shares) | 54,074 | 47,412 |
Common Class B [Member] | ||
Common stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Common stock, shares issued (in shares) | 914,283 | 914,283 |
Treasury shares, issued (in shares) | 182,435 | 182,435 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total sales | $ 33,641,513 | $ 32,189,623 | $ 110,058,884 | $ 95,094,396 |
Cost of Sales | 24,732,181 | 25,879,820 | 80,158,123 | 75,649,696 |
Gross Profit | 8,909,332 | 6,309,803 | 29,900,761 | 19,444,700 |
Operating Expenses: | ||||
Selling, general and administrative expenses | 4,612,364 | 4,310,125 | 15,332,161 | 13,672,173 |
Operating Income | 4,296,968 | 1,999,678 | 14,568,600 | 5,772,527 |
Other (Income) and Expenses: | ||||
Interest charges | 294,825 | 331,156 | 1,030,729 | 746,237 |
Loss on investments in equity securities | 135,522 | 101,370 | 17,040 | 535,439 |
Other (income) expense, net | (599) | (195,046) | (345,569) | (508,108) |
Total Other (Income) and Expenses | 429,748 | 237,480 | 702,200 | 773,568 |
Income before Provision for Income Taxes | 3,867,220 | 1,762,198 | 13,866,400 | 4,998,959 |
Provision for Income Taxes | 1,052,484 | 507,653 | 3,808,850 | 1,507,275 |
Net Income | $ 2,814,736 | $ 1,254,545 | $ 10,057,550 | $ 3,491,684 |
Net Income Per Common Share - Basic (in dollars per share) | $ 0.80 | $ 0.36 | $ 2.87 | $ 1.01 |
Net Income Per Common Share - Diluted (in dollars per share) | $ 0.80 | $ 0.36 | $ 2.86 | $ 1.01 |
Basic (in shares) | 3,510,740 | 3,476,087 | 3,506,920 | 3,458,437 |
Diluted (in shares) | 3,536,697 | 3,476,087 | 3,519,672 | 3,458,437 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] Common Class A [Member] | Common Stock [Member] Common Class B [Member] | Treasury Stock, Common [Member] Common Class A [Member] | Treasury Stock, Common [Member] Common Class B [Member] | Treasury Stock, Common [Member] | Common Stock Outstanding [Member] Common Class A [Member] | Common Stock Outstanding [Member] Common Class B [Member] | Common Stock Including Additional Paid in Capital [Member] Common Class A [Member] | Common Stock Including Additional Paid in Capital [Member] Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2021 | $ 5,393,823 | $ 1,465,522 | $ (1,981,113) | $ 1,741,901 | $ 28,019,768 | $ 34,639,901 | ||||||
Share-based compensation expense | 937,921 | 0 | 0 | 0 | 0 | 937,921 | ||||||
Net Income | $ 0 | $ 0 | 0 | 0 | 3,491,684 | 3,491,684 | ||||||
Balance (in shares) at Dec. 31, 2021 | 2,720,787 | 914,283 | 41,844 | 182,435 | 2,678,943 | 731,848 | ||||||
Balance (in shares) at Sep. 30, 2022 | 2,791,449 | 914,283 | 47,210 | 182,435 | 2,744,239 | 731,848 | 2,791,449 | 914,283 | ||||
Repurchase of shares | $ 0 | $ 0 | (140,709) | 0 | 0 | (140,709) | ||||||
Stock awards (forfeits) issued to directors and officers (in shares) | 32,200 | 0 | 0 | 0 | 32,200 | 0 | ||||||
Repurchase of shares (in shares) | 0 | 0 | 5,366 | 0 | 0 | |||||||
Repurchase of shares (in shares) | (5,366) | |||||||||||
Issuance for acquisition | $ 1,000,012 | $ 0 | 0 | 0 | 0 | 1,000,012 | ||||||
Balance at Sep. 30, 2022 | $ 7,331,756 | $ 1,465,522 | (2,121,822) | 1,741,901 | 31,511,452 | 39,928,809 | ||||||
Acquisition (in shares) | 38,462 | 0 | 0 | 0 | 38,462 | 0 | ||||||
Balance at Jun. 30, 2022 | $ 7,311,949 | $ 1,465,522 | (2,121,822) | 1,741,901 | 30,256,907 | 38,654,457 | ||||||
Share-based compensation expense | 19,807 | 0 | 0 | 0 | 0 | 19,807 | ||||||
Net Income | $ 0 | $ 0 | 0 | 0 | 1,254,545 | 1,254,545 | ||||||
Balance (in shares) at Jun. 30, 2022 | 47,210 | 182,435 | 2,744,239 | 731,848 | 2,791,449 | 914,283 | ||||||
Balance (in shares) at Sep. 30, 2022 | 2,791,449 | 914,283 | 47,210 | 182,435 | 2,744,239 | 731,848 | 2,791,449 | 914,283 | ||||
Balance at Sep. 30, 2022 | $ 7,331,756 | $ 1,465,522 | (2,121,822) | 1,741,901 | 31,511,452 | 39,928,809 | ||||||
Balance at Dec. 31, 2022 | 7,351,563 | 1,465,522 | (2,125,252) | 1,741,901 | 34,581,171 | 43,014,905 | ||||||
Share-based compensation expense | 1,153,105 | 0 | 0 | 0 | 0 | 1,153,105 | ||||||
Net Income | $ 0 | $ 0 | 0 | 0 | 10,057,550 | 10,057,550 | ||||||
Balance (in shares) at Dec. 31, 2022 | 2,791,449 | 914,283 | 47,412 | 182,435 | 2,744,037 | 731,848 | ||||||
Balance (in shares) at Sep. 30, 2023 | 2,832,966 | 914,283 | 54,074 | 182,435 | 2,778,892 | 731,848 | ||||||
Stock issuance | $ 150,000 | $ 0 | 0 | 0 | 0 | 150,000 | ||||||
Repurchase of shares | $ 0 | $ 0 | (111,775) | 0 | 0 | (111,775) | ||||||
Stock awards (forfeits) issued to directors and officers (in shares) | 34,200 | 0 | 0 | 0 | 34,200 | 0 | ||||||
Stock issuance (in shares) | 7,317 | 0 | 0 | 0 | 7,317 | 0 | ||||||
Repurchase of shares (in shares) | 0 | 0 | 6,662 | 0 | 0 | |||||||
Repurchase of shares (in shares) | (6,662) | |||||||||||
Balance at Sep. 30, 2023 | $ 8,654,668 | $ 1,465,522 | (2,237,027) | 1,741,901 | 44,638,722 | 54,263,786 | ||||||
Balance at Jun. 30, 2023 | 8,430,351 | 1,465,522 | (2,237,027) | 1,741,901 | 41,823,986 | 51,224,732 | ||||||
Share-based compensation expense | 224,317 | 0 | 0 | 0 | 0 | 224,317 | ||||||
Net Income | $ 0 | $ 0 | 0 | 0 | 2,814,736 | 2,814,736 | ||||||
Balance (in shares) at Jun. 30, 2023 | 2,832,966 | 914,283 | 54,074 | 182,435 | 2,778,892 | 731,848 | ||||||
Balance (in shares) at Sep. 30, 2023 | 2,832,966 | 914,283 | 54,074 | 182,435 | 2,778,892 | 731,848 | ||||||
Balance at Sep. 30, 2023 | $ 8,654,668 | $ 1,465,522 | $ (2,237,027) | $ 1,741,901 | $ 44,638,722 | $ 54,263,786 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flow (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net Income | $ 10,057,550 | $ 3,491,684 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,156,558 | 2,800,279 |
Loss on investments in equity securities | 17,040 | 535,439 |
Amortization of right of use assets | 1,267,360 | 1,054,699 |
Loss on disposal of assets | 59,237 | 15,370 |
Non-cash share-based compensation expense | 1,153,105 | 937,921 |
Changes in assets and liabilities: | ||
Accounts receivable | (2,578,233) | (2,858,971) |
Inventories | (621,222) | (3,877,729) |
Contract assets | 64,529 | 112,121 |
Prepaid expenses & other assets | 618,927 | (82,071) |
Accounts payable | (2,671,465) | 2,598,799 |
Lease liabilities | (673,160) | (600,510) |
Other current liabilities | (1,097,923) | 749,110 |
Unearned revenue | 2,218,573 | 1,293,953 |
Total adjustments | 913,326 | 2,678,409 |
Net Cash Provided by Operating Activities | 10,970,876 | 6,170,094 |
Cash Flows from Investing Activities | ||
Cash paid for business acquisitions | 0 | (4,331,739) |
Capital expenditures | (1,394,192) | (533,581) |
Net Cash (Used in) Investing Activities | (1,394,192) | (4,865,320) |
Cash Flows from Financing Activities | ||
Payments on notes | (1,657,749) | (3,331,091) |
Payments on bank debt | (14,246,403) | (4,535,000) |
Borrowings on bank debt | 6,741,084 | 8,115,202 |
Payments on contingent liability | 0 | (750,000) |
Share repurchase | (111,775) | (140,709) |
Net Cash Used in Financing Activities | (9,274,843) | (641,597) |
Net Increase in cash and cash equivalents | 301,841 | 663,178 |
Cash and cash equivalents at beginning of period | 1,247,627 | 1,494,415 |
Cash and cash equivalents at end of period | 1,549,468 | 2,157,591 |
Supplemental disclosures of cash flow information | ||
Interest Paid | 1,002,952 | 736,334 |
Supplemental disclosures of noncash financing and investing activity | ||
Additions to ROU assets obtained from new operating lease liabilities | 457,317 | 380,298 |
Purchase accounting adjustment to Goodwill for a change in inventory | 147,591 | 0 |
Purchase accounting adjustment to Goodwill for a change in fixed assets | 73,520 | 0 |
Issuance of Class A common shares in business acquisition | 0 | 1,000,012 |
Issuance of Class A common shares for capital expenditures | $ 150,000 | $ 0 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10 8 X. not three nine September 30, 2023 not may December 31, 2023 10 December 31, 2022 During the nine September 30, 2023 no |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10 December 31, 2022 New Accounting Standards Recently Adopted In June 2016, 2016 13, January 1, 2023 not Use of Estimates in the Preparation of Financial Statements may Fair Value of Financial Instruments Fair Value Measurements As defined in FASB ASC 820, one three * Level 1: * Level 2: * Quoted prices for similar assets or liabilities in active markets; * Quoted prices for identical assets or similar assets or liabilities in inactive markets; * Inputs other than quoted prices that are observable for the asset or liability; * Inputs that are derived principally from or corroborated by observable market data by correlation or other means. * Level 3: not A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for the Company's instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. * Stock: The stock market value is based on valuation of market quotes from independent active market sources and is considered a level 1 |
Note 3 - Accounts Receivable
Note 3 - Accounts Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. ACCOUNTS RECEIVABLE The balance of accounts receivable, net was $24,463,040, $21,884,807, and $18,387,744 at September 30, 2023 December 31, 2022 December 31, 2021, The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. The reserve for doubtful accounts was $177,891, $143,631and $75,930 at September 30, 2023 December 31, 2022 December 31, 2021, |
Note 4 - Inventory
Note 4 - Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. INVENTORY Inventory is valued at the lower of cost ( first first September 30, December 31, 2023 2022 Raw materials and component parts $ 4,394,288 $ 2,892,820 Work-in-process 4,886,432 5,158,252 Finished products 11,985,900 13,483,017 Total inventory $ 21,266,620 $ 21,534,089 Less: inventory reserves 616,847 1,357,947 Net inventory $ 20,649,773 $ 20,176,142 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is tested annually for impairment, or more frequently if indicators of impairment are identified. For the identified reporting units, impairment testing was performed as of December 31, 2022 no three nine September 30, 2023 Goodwill increased by $0.2 million from $16.2 million at December 31, 2022 September 30, 2023 second December 31, 2021 December 31, 2022 first second 2022, Goodwill by reportable segment is as follows: September 30, December 31, 2023 2022 Commercial Air Handling Equipment Segment: Beginning Balance $ 478,256 $ 478,256 Acquisitions - - Adjustments - - Ending Balance $ 478,256 $ 478,256 Industrial and Transportation Products Segment: Beginning Balance $ 15,753,682 $ 13,926,362 Acquisitions - 1,997,174 Adjustments 221,111 (169,854 ) Ending Balance $ 15,974,793 $ 15,753,682 Total Company: Beginning Balance $ 16,231,938 $ 14,404,618 Acquisitions - 1,997,174 Adjustments 221,111 (169,854 ) Ending Balance $ 16,453,049 $ 16,231,938 The Company's intangible assets have primarily been generated via acquisitions. Intangibles are being amortized on a straight-line basis over periods ranging from one Intangible assets are as follows: September 30, December 31, 2023 2022 Customer list intangibles $ 9,316,000 $ 9,316,000 Non-compete agreements 200,000 200,000 Trademarks 4,466,899 4,445,649 Total intangible assets 13,982,899 13,961,649 Less: accumulated amortization 5,414,997 4,469,089 Intangible assets, net $ 8,567,902 $ 9,492,560 Amortization of intangibles assets was: $315,302 and $316,729 for the three September 30, 2023 2022 nine September 30, 2023 2022 Intangible amortization for the next five Amortization in future periods 2023 315,303 2024 1,261,210 2025 1,261,210 2026 933,345 2027 817,298 |
Note 6 - Property, Plant and Eq
Note 6 - Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expensed as incurred. Property, plant and equipment are as follows: September 30, December 31, 2023 2022 Land $ 231,034 $ 231,034 Buildings and improvements 3,510,659 3,222,243 Machinery & equipment 24,403,429 23,301,660 Total property, plant & equipment 28,145,122 26,754,937 Less: accumulated depreciation 13,718,616 11,541,494 Property plant & equipment, net $ 14,426,506 $ 15,213,443 During the second 2023, Depreciation expense was $806,639 and $597,320 for the three September 30, 2023 2022 nine September 30, 2023 2022 |
Note 7 - Investments in Equity
Note 7 - Investments in Equity Securities | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 7. INVESTMENTS IN EQUITY SECURITIES Investments in equity securities are valued based on quotes stock prices in active markets, thus Level 1 UNREALIZED REALIZED BALANCE ACQUISITIONS, GAINS GAINS BALANCE AT DISPOSITIONS (LOSSES) (LOSSES) AT END BEGINNING AND INCLUDED INCLUDED OF OF YEAR SETTLEMENTS IN EARNINGS IN EARNINGS PERIOD December 31, 2022 $ 1,518,244 $ - $ (860,273 ) $ - $ 657,971 Year-to-date September 30, 2023 657,971 - 29,244 (46,284 ) 640,931 |
Note 8 - Bank Debt
Note 8 - Bank Debt | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | 8. BANK DEBT The Company is party to a Credit Agreement with JPMorgan Chase Bank, N.A. as lender (as amended, the “Credit Agreement”). The Company entered into a sixth June 12, 2023. June 30, 2023. The Credit Agreement, both before and after the execution of the sixth June 1, 2024. December 1, 2022, January 4, 2023. The revolving facility under the Credit Agreement includes a $3 million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or SOFR (previously LIBOR) plus applicable margins of (i) (0.25%) for Prime Rate loans and (ii) 1.75% for SOFR (previously LIBOR) loans. The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of 0.25% per annum payable quarterly. The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio. Bank debt balances consist of the following: September 30, December 31, 2023 2022 Term debt $ - $ 222,222 Revolving debt 11,998,022 19,281,119 Total Bank debt 11,998,022 19,503,341 Less: current portion 11,974,749 222,222 Non-current bank debt 23,273 19,281,119 Less: unamortized debt costs 23,273 56,801 Net non-current bank debt $ - $ 19,224,318 The Company had $18.0 million and $10.7 million available to borrow on the revolving credit facility at September 30, 2023 December 31, 2022 |
Note 9 - Notes Payable
Note 9 - Notes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. NOTES PAYABLE Notes Payable – Related Party The Company had two July 2016 July 2018 first second July 2018 In connection with the Komtek Forge acquisition, on January 15, 2021, one April 15, 2021. Notes Payable – Seller Note Effective July 1, 2018, four March 31, 2023. Notes payable consists of the following: September 30, December 31, 2023 2022 In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $ 3,779,784 $ 1,492,628 $ 2,587,877 In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $ 9,000,000 - 562,500 Total notes payable 1,492,628 3,150,377 Less current portion 811,546 1,303,972 Notes payable – non-current portion $ 681,082 $ 1,846,405 |
Note 10 - Leases
Note 10 - Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | 10. The Company has operating leases for facilities, vehicles and equipment. These leases have remaining terms of under one Supplemental balance sheet information related to leases: September 30, December 31, 2023 2022 Operating leases: Operating lease right-of-use assets, net $ 8,841,145 $ 9,524,280 Other current liabilities 1,671,484 1,705,224 Operating lease liabilities 7,420,732 8,060,152 Total operating lease liabilities $ 9,092,216 $ 9,765,376 Weighted Average Remaining Lease Term Operating Leases (in years) 7.2 7.7 Weighted Average Discount Rate Operating Leases 5 % 5 % |
Note 11 - Earnings Per Common S
Note 11 - Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 11. The following table sets forth the computation of basic and diluted earnings per share. Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Earnings Per Share - Basic Net Income $ 2,814,736 $ 1,254,545 $ 10,057,550 $ 3,491,684 Weighted average shares of common stock outstanding - Basic 3,510,740 3,476,087 3,506,920 3,458,437 Earnings Per Share - Basic $ 0.80 $ 0.36 $ 2.87 $ 1.01 Earnings Per Share - Diluted Weighted average shares of common stock outstanding - Basic 3,510,740 3,476,087 3,506,920 3,458,437 Unvested Restricted Stock Awards 25,957 - 12,752 - Weighted average shares of common stock - Diluted 3,536,697 3,476,087 3,519,672 3,458,437 Earnings Per Share - Diluted $ 0.80 $ 0.36 $ 2.86 $ 1.01 |
Note 12 - Acquisitions
Note 12 - Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 12. Reverso Pumps and Separ America Effective January 10, 2022, January 10, 2022 Additionally, effective on January 10, 2022, SEP Cash Consideration Transferred $ 3,951,392 Seller Transaction Costs 230,359 Total Consideration $ 4,181,751 Accounts Receivable 466,887 Inventory 1,308,822 Fixed Assets 64,710 Prepaid and Other Assets 64,080 Intangible Assets: Customer List & Trademarks 1,300,000 Goodwill 1,572,913 Total Assets Acquired $ 4,777,412 Accounts Payable $ 542,359 Accrued Expense 53,302 Total Liabilities Assumed $ 595,661 Total Fair Value $ 4,181,751 Acquisition transaction costs incurred were: $ 124,825 Goodwill has an assigned value of $1.6 million and represents the expected synergies generated by combining the operations of Reverso, Separ, and the Company. The Company sells marine hoses and related products and the acquisition of Reverso Pumps and Separ America has allowed the Company to expand its offerings to customers in the strategically important marine and defense markets. Intangible assets, customer list has an assigned value of $0.5 million which represents the expected value of the list of the customers of Reverso Pumps and Separ America. Intangible assets, trademarks has an assigned value of $0.8 million which represents the expected value of the trademarks of Reverso Pumps and Separ America. Knitting Machinery Company Effective May 1, 2022, May 1, 2022. Cash Consideration Transferred $ 250,000 Fair Value of Stock Consideration 1,000,012 Total Consideration $ 1,250,012 Cash $ 100,000 Accounts Receivable 155,932 Inventory 517,270 Fixed Assets 90,603 Intangible Assets 150,000 Goodwill 645,372 Total Assets Acquired $ 1,659,177 Accounts Payable $ 33,694 Deferred Revenue 375,471 Total Liabilities Assumed $ 409,165 Total Fair Value 1,250,012 Acquisition transaction costs incurred were: $ 30,479 Goodwill has an assigned value of $0.6 million and represents the expected synergies generated by combining the operations of KMC and the Company. Goodwill increased by $0.2 million from $0.4 million at December 31, 2022 September 30, 2023 second 2023 Sales and Net Income for the Acquired Companies Sales and net income information for the acquired companies, Reverso Pumps LLC (“Reverso Pumps”), Separ America LLC (“Separ America”) and Knitting Machinery Company of America LLC (“Knitting Machinery”) since the respective acquisition dates for the nine September 30, 2023 2022 Nine Months ended Nine Months ended September 30, 2023 September 30, 2022 Sales Net Income Sales Net Income Acquired Companies: Reverso Pumps (acquired January 10, 2022) $ 4,987,873 $ 863,978 $ 3,930,057 $ 663,070 Separ America (acquired January 10, 2022) 1,942,594 617,175 1,440,788 247,346 Knitting Machinery (acquired May 1, 2022) 229,080 19,014 818,108 73,195 Subtotal Acquired Companies $ 7,159,547 $ 1,500,167 6,188,953 983,611 All Other Companies 102,899,337 8,557,383 88,905,443 2,508,073 Total $ 110,058,884 $ 10,057,550 $ 95,094,396 $ 3,491,684 |
Note 13 - Segment and Related I
Note 13 - Segment and Related Information | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 13. The Company reports operations for two 1 2 280 10 50 1. not Both the Commercial Air Handling Equipment segment and the Industrial and Transportation Products segment may may Commercial Air Handling Equipment: The Commercial Air Handling Equipment segment was added June 1, 2017, 50 Industrial and Transportation Products: The Industrial and Transportation Products segment was added July 1, 2016, July 1, 2018. 9001:2015/AS9100D, January 2, 2020. April 19, 2019, January 15, 2021. March 2, 2021. July 1, 2021. January 10, 2022. The Company purchased substantially all of the assets of Crawford SEP January 10, 2022. May 1, 2022. The factors used to determine the Company’s reportable segments follow the guidance of ASC 280 10 50 21 50 10 22 not three eighteen 30 Corporate costs not Costs incurred at corporate headquarters do not two not Information by industry segment is set forth below: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Sales summary by segment Commercial Air Handling $ 12,728,949 $ 11,485,339 $ 43,640,142 $ 34,888,594 Industrial and Transportation Products 20,912,564 20,704,284 66,418,742 60,205,802 Total Sales 33,641,513 32,189,623 110,058,884 95,094,396 Gross profit summary by segment Commercial Air Handling 4,303,355 2,558,998 13,773,039 7,641,794 Industrial and Transportation Products 4,605,977 3,750,805 16,127,722 11,802,906 Total Gross Profit 8,909,332 6,309,803 29,900,761 19,444,700 Segment operating profit Commercial Air Handling 3,339,289 1,522,819 10,742,038 4,467,716 Industrial and Transportation Products 1,948,255 1,132,485 7,745,106 4,254,106 Total Segment Operating Profit 5,287,544 2,655,304 18,487,144 8,721,822 Corporate charges not allocated to segments 990,576 655,626 3,918,544 2,949,295 Operating Income 4,296,968 1,999,678 14,568,600 5,772,527 Interest charges 294,825 331,156 1,030,729 746,237 (Gain) loss on investments 135,522 101,370 17,040 535,439 Other (income) expense, net (599 ) (195,046 ) (345,569 ) (508,108 ) Income before Provision for Income Taxes $ 3,867,220 $ 1,762,198 $ 13,866,400 $ 4,998,959 |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 14. None. |
Note 4 - Inventory (Tables)
Note 4 - Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2023 2022 Raw materials and component parts $ 4,394,288 $ 2,892,820 Work-in-process 4,886,432 5,158,252 Finished products 11,985,900 13,483,017 Total inventory $ 21,266,620 $ 21,534,089 Less: inventory reserves 616,847 1,357,947 Net inventory $ 20,649,773 $ 20,176,142 |
Note 5 - Goodwill and Other I_2
Note 5 - Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | September 30, December 31, 2023 2022 Commercial Air Handling Equipment Segment: Beginning Balance $ 478,256 $ 478,256 Acquisitions - - Adjustments - - Ending Balance $ 478,256 $ 478,256 Industrial and Transportation Products Segment: Beginning Balance $ 15,753,682 $ 13,926,362 Acquisitions - 1,997,174 Adjustments 221,111 (169,854 ) Ending Balance $ 15,974,793 $ 15,753,682 Total Company: Beginning Balance $ 16,231,938 $ 14,404,618 Acquisitions - 1,997,174 Adjustments 221,111 (169,854 ) Ending Balance $ 16,453,049 $ 16,231,938 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, December 31, 2023 2022 Customer list intangibles $ 9,316,000 $ 9,316,000 Non-compete agreements 200,000 200,000 Trademarks 4,466,899 4,445,649 Total intangible assets 13,982,899 13,961,649 Less: accumulated amortization 5,414,997 4,469,089 Intangible assets, net $ 8,567,902 $ 9,492,560 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization in future periods 2023 315,303 2024 1,261,210 2025 1,261,210 2026 933,345 2027 817,298 |
Note 6 - Property, Plant and _2
Note 6 - Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, December 31, 2023 2022 Land $ 231,034 $ 231,034 Buildings and improvements 3,510,659 3,222,243 Machinery & equipment 24,403,429 23,301,660 Total property, plant & equipment 28,145,122 26,754,937 Less: accumulated depreciation 13,718,616 11,541,494 Property plant & equipment, net $ 14,426,506 $ 15,213,443 |
Note 7 - Investments in Equit_2
Note 7 - Investments in Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Gain (Loss) on Securities [Table Text Block] | UNREALIZED REALIZED BALANCE ACQUISITIONS, GAINS GAINS BALANCE AT DISPOSITIONS (LOSSES) (LOSSES) AT END BEGINNING AND INCLUDED INCLUDED OF OF YEAR SETTLEMENTS IN EARNINGS IN EARNINGS PERIOD December 31, 2022 $ 1,518,244 $ - $ (860,273 ) $ - $ 657,971 Year-to-date September 30, 2023 657,971 - 29,244 (46,284 ) 640,931 |
Note 8 - Bank Debt (Tables)
Note 8 - Bank Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 30, December 31, 2023 2022 Term debt $ - $ 222,222 Revolving debt 11,998,022 19,281,119 Total Bank debt 11,998,022 19,503,341 Less: current portion 11,974,749 222,222 Non-current bank debt 23,273 19,281,119 Less: unamortized debt costs 23,273 56,801 Net non-current bank debt $ - $ 19,224,318 |
Note 9 - Notes Payable (Tables)
Note 9 - Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | September 30, December 31, 2023 2022 In connection with the Komtek Forge acquisition, the Company refinanced the outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $ 3,779,784 $ 1,492,628 $ 2,587,877 In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $ 9,000,000 - 562,500 Total notes payable 1,492,628 3,150,377 Less current portion 811,546 1,303,972 Notes payable – non-current portion $ 681,082 $ 1,846,405 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block] | September 30, December 31, 2023 2022 Operating leases: Operating lease right-of-use assets, net $ 8,841,145 $ 9,524,280 Other current liabilities 1,671,484 1,705,224 Operating lease liabilities 7,420,732 8,060,152 Total operating lease liabilities $ 9,092,216 $ 9,765,376 Weighted Average Remaining Lease Term Operating Leases (in years) 7.2 7.7 Weighted Average Discount Rate Operating Leases 5 % 5 % |
Note 11 - Earnings Per Common_2
Note 11 - Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Earnings Per Share - Basic Net Income $ 2,814,736 $ 1,254,545 $ 10,057,550 $ 3,491,684 Weighted average shares of common stock outstanding - Basic 3,510,740 3,476,087 3,506,920 3,458,437 Earnings Per Share - Basic $ 0.80 $ 0.36 $ 2.87 $ 1.01 Earnings Per Share - Diluted Weighted average shares of common stock outstanding - Basic 3,510,740 3,476,087 3,506,920 3,458,437 Unvested Restricted Stock Awards 25,957 - 12,752 - Weighted average shares of common stock - Diluted 3,536,697 3,476,087 3,519,672 3,458,437 Earnings Per Share - Diluted $ 0.80 $ 0.36 $ 2.86 $ 1.01 |
Note 12 - Acquisitions (Tables)
Note 12 - Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Business Acquisition, Pro Forma Information [Table Text Block] | Nine Months ended Nine Months ended September 30, 2023 September 30, 2022 Sales Net Income Sales Net Income Acquired Companies: Reverso Pumps (acquired January 10, 2022) $ 4,987,873 $ 863,978 $ 3,930,057 $ 663,070 Separ America (acquired January 10, 2022) 1,942,594 617,175 1,440,788 247,346 Knitting Machinery (acquired May 1, 2022) 229,080 19,014 818,108 73,195 Subtotal Acquired Companies $ 7,159,547 $ 1,500,167 6,188,953 983,611 All Other Companies 102,899,337 8,557,383 88,905,443 2,508,073 Total $ 110,058,884 $ 10,057,550 $ 95,094,396 $ 3,491,684 |
Knitting Machinery Company of America LLC [Member] | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash Consideration Transferred $ 250,000 Fair Value of Stock Consideration 1,000,012 Total Consideration $ 1,250,012 Cash $ 100,000 Accounts Receivable 155,932 Inventory 517,270 Fixed Assets 90,603 Intangible Assets 150,000 Goodwill 645,372 Total Assets Acquired $ 1,659,177 Accounts Payable $ 33,694 Deferred Revenue 375,471 Total Liabilities Assumed $ 409,165 Total Fair Value 1,250,012 Acquisition transaction costs incurred were: $ 30,479 |
Reverso Pumps, Inc. [Member] | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash Consideration Transferred $ 3,951,392 Seller Transaction Costs 230,359 Total Consideration $ 4,181,751 Accounts Receivable 466,887 Inventory 1,308,822 Fixed Assets 64,710 Prepaid and Other Assets 64,080 Intangible Assets: Customer List & Trademarks 1,300,000 Goodwill 1,572,913 Total Assets Acquired $ 4,777,412 Accounts Payable $ 542,359 Accrued Expense 53,302 Total Liabilities Assumed $ 595,661 Total Fair Value $ 4,181,751 Acquisition transaction costs incurred were: $ 124,825 |
Note 13 - Segment and Related_2
Note 13 - Segment and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Sales summary by segment Commercial Air Handling $ 12,728,949 $ 11,485,339 $ 43,640,142 $ 34,888,594 Industrial and Transportation Products 20,912,564 20,704,284 66,418,742 60,205,802 Total Sales 33,641,513 32,189,623 110,058,884 95,094,396 Gross profit summary by segment Commercial Air Handling 4,303,355 2,558,998 13,773,039 7,641,794 Industrial and Transportation Products 4,605,977 3,750,805 16,127,722 11,802,906 Total Gross Profit 8,909,332 6,309,803 29,900,761 19,444,700 Segment operating profit Commercial Air Handling 3,339,289 1,522,819 10,742,038 4,467,716 Industrial and Transportation Products 1,948,255 1,132,485 7,745,106 4,254,106 Total Segment Operating Profit 5,287,544 2,655,304 18,487,144 8,721,822 Corporate charges not allocated to segments 990,576 655,626 3,918,544 2,949,295 Operating Income 4,296,968 1,999,678 14,568,600 5,772,527 Interest charges 294,825 331,156 1,030,729 746,237 (Gain) loss on investments 135,522 101,370 17,040 535,439 Other (income) expense, net (599 ) (195,046 ) (345,569 ) (508,108 ) Income before Provision for Income Taxes $ 3,867,220 $ 1,762,198 $ 13,866,400 $ 4,998,959 |
Note 3 - Accounts Receivable (D
Note 3 - Accounts Receivable (Details Textual) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable, after Allowance for Credit Loss | $ 24,463,040 | $ 21,884,807 | $ 18,387,744 |
Accounts Receivable, Allowance for Credit Loss | $ 177,891 | $ 143,631 | $ 75,930 |
Note 4 - Inventory - Inventory
Note 4 - Inventory - Inventory (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Raw materials and component parts | $ 4,394,288 | $ 2,892,820 |
Work-in-process | 4,886,432 | 5,158,252 |
Finished products | 11,985,900 | 13,483,017 |
Total inventory | 21,266,620 | 21,534,089 |
Less: inventory reserves | 616,847 | 1,357,947 |
Net inventory | $ 20,649,773 | $ 20,176,142 |
Note 5 - Goodwill and Other I_3
Note 5 - Goodwill and Other Intangible Assets, Net (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | ||||
Goodwill, Period Increase (Decrease) | 200,000 | $ 1,800,000 | ||||
Goodwill | 16,453,049 | 16,453,049 | 16,231,938 | $ 14,404,618 | ||
Goodwill, Acquired During Period | 0 | $ 2,000,000 | 1,997,174 | |||
Goodwill, Purchase Accounting Adjustments | 221,111 | (169,854) | ||||
Amortization of Intangible Assets | $ 315,302 | $ 316,729 | $ 945,907 | $ 956,853 | ||
Minimum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | 1 year | ||||
Maximum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | 15 years | ||||
Acquisition of Global Tek Manufacturing LLC [Member] | ||||||
Goodwill, Purchase Accounting Adjustments | (200,000) | |||||
Goodwill Approximation [Member] | ||||||
Goodwill | $ 16,500,000 | $ 16,500,000 | $ 16,200,000 |
Note 5 - Goodwill and Other I_4
Note 5 - Goodwill and Other Intangible Assets, Net - Goodwill By Reportable Segment (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Beginning Balance | $ 16,231,938 | $ 14,404,618 | $ 14,404,618 |
Acquisitions | 0 | 2,000,000 | 1,997,174 |
Adjustments | 221,111 | (169,854) | |
Ending Balance | 16,453,049 | 16,231,938 | |
Commercial Air Handling [Member] | |||
Beginning Balance | 478,256 | 478,256 | 478,256 |
Acquisitions | 0 | 0 | |
Adjustments | 0 | 0 | |
Ending Balance | 478,256 | 478,256 | |
Industrial and Transportation Products [Member] | |||
Beginning Balance | 15,753,682 | $ 13,926,362 | 13,926,362 |
Acquisitions | 0 | 1,997,174 | |
Adjustments | 221,111 | (169,854) | |
Ending Balance | $ 15,974,793 | $ 15,753,682 |
Note 5 - Goodwill and Other I_5
Note 5 - Goodwill and Other Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Other intangibles, gross | $ 13,982,899 | $ 13,961,649 |
Less: accumulated amortization | 5,414,997 | 4,469,089 |
Intangible assets, net | 8,567,902 | 9,492,560 |
Customer Lists [Member] | ||
Other intangibles, gross | 9,316,000 | 9,316,000 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 200,000 | 200,000 |
Trademarks [Member] | ||
Other intangibles, gross | $ 4,466,899 | $ 4,445,649 |
Note 5 - Goodwill and Other I_6
Note 5 - Goodwill and Other Intangible Assets - Future Amortization Expense (Details) | Sep. 30, 2023 USD ($) |
2023 | $ 315,303 |
2024 | 1,261,210 |
2025 | 1,261,210 |
2026 | 933,345 |
2027 | $ 817,298 |
Note 6 - Property, Plant and _3
Note 6 - Property, Plant and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Depreciation | $ 806,639 | $ 597,320 | $ 2,177,123 | $ 1,778,566 | |
Common Class A [Member] | Aerospace Tooling Machine [Member] | Air Power Dynamics, LLC [Member] | |||||
Stock Issued During Period, Shares, Purchase of Assets (in shares) | 7,317 | ||||
Stock Issued During Period, Value, Purchase of Assets | $ 150,000 |
Note 6 - Property, Plant and _4
Note 6 - Property, Plant and Equipment, Net - Schedule of Property, Plant, and Equipment (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property Plant and Equipment, Gross | $ 28,145,122 | $ 26,754,937 |
Less: accumulated depreciation | 13,718,616 | 11,541,494 |
Property plant & equipment, net | 14,426,506 | 15,213,443 |
Land [Member] | ||
Property Plant and Equipment, Gross | 231,034 | 231,034 |
Building and Building Improvements [Member] | ||
Property Plant and Equipment, Gross | 3,510,659 | 3,222,243 |
Machinery and Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 24,403,429 | $ 23,301,660 |
Note 7 - Investments in Equit_3
Note 7 - Investments in Equity Securities - Summary of Investment in Equity Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Balance | $ 657,971 | $ 1,518,244 |
Acquisitions, Dispositions and Settlements | 0 | 0 |
Unrealized Gains Included in Earnings | 29,244 | (860,273) |
Realized Gains (Losses) Included in Earnings | (46,284) | 0 |
Balance | $ 640,931 | $ 657,971 |
Note 8 - Bank Debt (Details Tex
Note 8 - Bank Debt (Details Textual) - J P Morgan Chase Bank [Member] - USD ($) | Mar. 02, 2021 | Sep. 30, 2023 | Dec. 31, 2022 |
Prime Rate [Member] | Term Debt [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 18,000,000 | $ 10,700,000 | |
Revolving Credit Facility [Member] | Prime Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) 1 [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Letter of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
Note 8 - Bank Debt - Summary of
Note 8 - Bank Debt - Summary of Loan Balances (Details) - Bank Debt [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Total Bank Debt | $ 11,998,022 | $ 19,503,341 |
Less: current portion | 11,974,749 | 222,222 |
Non-current bank debt | 23,273 | 19,281,119 |
Less: unamortized debt costs | 23,273 | 56,801 |
Net non-current bank debt | 0 | 19,224,318 |
Term Debt [Member] | ||
Total Bank Debt | 0 | 222,222 |
Line of Credit [Member] | ||
Total Bank Debt | $ 11,998,022 | $ 19,281,119 |
Note 9 - Notes Payable (Details
Note 9 - Notes Payable (Details Textual) - USD ($) | 9 Months Ended | |||||||
Jul. 05, 2018 | Jul. 01, 2018 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jan. 15, 2021 | Jan. 14, 2021 | Jul. 01, 2016 | |
Payments to Acquire Businesses, Gross | $ 0 | $ 4,331,739 | ||||||
CAD Enterprises, Inc. [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 21,000,000 | |||||||
Payments to Acquire Businesses, Gross | $ 12,000,000 | |||||||
Notes Payable [Member] | ||||||||
Notes Payable, Total | 1,492,628 | $ 3,150,377 | ||||||
Seller Note [Member] | CAD Enterprises, Inc. [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4% | |||||||
Seller Note [Member] | Notes Payable [Member] | ||||||||
Debt Instrument, Face Amount | 9,000,000 | 9,000,000 | ||||||
Notes Payable, Total | 0 | 562,500 | ||||||
First Francis [Member] | Related Party Notes, One [Member] | Notes Payable [Member] | ||||||||
Debt Instrument, Face Amount | $ 2,000,000 | |||||||
First Francis [Member] | Related Party Notes, Two [Member] | Notes Payable [Member] | ||||||||
Debt Instrument, Face Amount | $ 2,768,662 | |||||||
First Francis [Member] | Related Party Notes [Member] | Notes Payable [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |||||||
Line of Credit Facility, Interest Rate During Period | 4% | |||||||
Notes Payable, Total | $ 2,077,384 | |||||||
First Francis [Member] | Related Party Notes [Member] | Notes Payable [Member] | Komtek Forge [Member] | ||||||||
Notes Payable, Total | $ 1,702,400 | |||||||
First Francis [Member] | Related Party Notes Three [Member] | Notes Payable [Member] | ||||||||
Debt Instrument, Face Amount | 3,779,784 | 3,779,784 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |||||||
Notes Payable, Total | $ 1,492,628 | $ 2,587,877 | $ 3,779,784 |
Note 9 - Notes Payable - Notes
Note 9 - Notes Payable - Notes Payable (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Jan. 15, 2021 |
Less current portion | $ 811,546 | $ 1,303,972 | |
Notes Payable [Member] | |||
Notes payable | 1,492,628 | 3,150,377 | |
Less current portion | 811,546 | 1,303,972 | |
Notes payable – non-current portion | 681,082 | 1,846,405 | |
Notes Payable [Member] | Related Party Notes Three [Member] | First Francis [Member] | |||
Notes payable | 1,492,628 | 2,587,877 | $ 3,779,784 |
Notes Payable [Member] | Seller Note [Member] | |||
Notes payable | $ 0 | $ 562,500 |
Note 9 - Notes Payable - Note_2
Note 9 - Notes Payable - Notes Payable (Details) (Parentheticals) - Notes Payable [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Related Party Notes Three [Member] | First Francis [Member] | ||
Notes payable, face value | $ 3,779,784 | $ 3,779,784 |
Seller Note [Member] | ||
Notes payable, face value | $ 9,000,000 | $ 9,000,000 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
Lessee, Operating and Finance Lease, Renewal Term (Year) | 10 years |
Minimum [Member] | |
Operating and Finance Lease, Remaining Term (Year) | 1 year |
Maximum [Member] | |
Operating and Finance Lease, Remaining Term (Year) | 11 years |
Note 10 - Leases - Lease Assets
Note 10 - Leases - Lease Assets and Liabilities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Operating lease right-of-use assets, net | $ 8,841,145 | $ 9,524,280 |
Weighted Average Remaining Lease Term, Operating Leases (in years) (Year) | 7 years 2 months 12 days | 7 years 8 months 12 days |
Weighted Average Discount Rate, Operating Leases | 5% | 5% |
Other Current Liabilities [Member] | ||
Other current liabilities | $ 1,671,484 | $ 1,705,224 |
Operating Lease Liabilities [Member] | ||
Operating lease liabilities | 7,420,732 | 8,060,152 |
Other Current Liabilities and Operating Lease Liabilities [Member] | ||
Total operating lease liabilities | $ 9,092,216 | $ 9,765,376 |
Note 11 - Earnings Per Common_3
Note 11 - Earnings Per Common Share - Summary of Earnings Per Share Calculation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net Income | $ 2,814,736 | $ 1,254,545 | $ 10,057,550 | $ 3,491,684 |
Weighted average shares of common stock outstanding - Basic (in shares) | 3,510,740 | 3,476,087 | 3,506,920 | 3,458,437 |
Net Income Per Common Share - Basic (in dollars per share) | $ 0.80 | $ 0.36 | $ 2.87 | $ 1.01 |
Unvested Restricted Stock Awards (in shares) | 25,957 | 0 | 12,752 | 0 |
Weighted average shares of common stock - Diluted (in shares) | 3,536,697 | 3,476,087 | 3,519,672 | 3,458,437 |
Net Income Per Common Share - Diluted (in dollars per share) | $ 0.80 | $ 0.36 | $ 2.86 | $ 1.01 |
Note 12 - Acquisitions (Details
Note 12 - Acquisitions (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | ||||
May 01, 2022 | Jan. 10, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Payments to Acquire Businesses, Gross | $ 0 | $ 4,331,739 | ||||
Goodwill | 16,453,049 | $ 16,231,938 | $ 14,404,618 | |||
Goodwill, Purchase Accounting Adjustments | 221,111 | (169,854) | ||||
Reverso Pumps, Inc. [Member] | ||||||
Payments to Acquire Businesses, Gross | $ 3,951,392 | |||||
Goodwill | 1,572,913 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 1,300,000 | |||||
Reverso Pumps, Inc. [Member] | Customer Lists [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 500,000 | |||||
Reverso Pumps, Inc. [Member] | Trademarks [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 800,000 | |||||
Knitting Machinery Company of America LLC [Member] | ||||||
Payments to Acquire Businesses, Gross | $ 250,000 | |||||
Goodwill | 645,372 | 600,000 | $ 400,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 150,000 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | 38,462 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,000,012 | |||||
Goodwill, Purchase Accounting Adjustments | $ 200,000 | |||||
Knitting Machinery Company of America LLC [Member] | Customer Lists [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 75,000 | |||||
Knitting Machinery Company of America LLC [Member] | Trademarks [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 75,000 | |||||
Separ America [Member] | Reverso Pumps, Inc. [Member] | ||||||
Payments to Acquire Businesses, Gross | 1,600,000 | |||||
Reverso Asset Purchase Agreement [Member] | Reverso Pumps, Inc. [Member] | ||||||
Asset Acquisition, Consideration Transferred, Total | $ 2,600,000 |
Note 12 - Acquisitions - Summar
Note 12 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Reverso Pumps LLC (Details) - USD ($) | 9 Months Ended | ||||
Jan. 10, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Consideration Transferred | $ 0 | $ 4,331,739 | |||
Goodwill | $ 16,453,049 | $ 16,231,938 | $ 14,404,618 | ||
Reverso Pumps, Inc. [Member] | |||||
Cash Consideration Transferred | $ 3,951,392 | ||||
Seller Transaction Costs | 230,359 | ||||
Total Consideration | 4,181,751 | ||||
Accounts Receivable | 466,887 | ||||
Inventory | 1,308,822 | ||||
Fixed Assets | 64,710 | ||||
Prepaid and Other Assets | 64,080 | ||||
Intangible Assets: Customer List & Trademarks | 1,300,000 | ||||
Goodwill | 1,572,913 | ||||
Total Assets Acquired | 4,777,412 | ||||
Accounts Payable | 542,359 | ||||
Accrued Expense | 53,302 | ||||
Total Liabilities Assumed | 595,661 | ||||
Total Fair Value | 4,181,751 | ||||
Acquisition transaction costs incurred were: | $ 124,825 |
Note 12 - Acquisitions - Summ_2
Note 12 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Knitting Machinery (Details) - USD ($) | 9 Months Ended | ||||
May 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Consideration Transferred | $ 0 | $ 4,331,739 | |||
Goodwill | 16,453,049 | $ 16,231,938 | $ 14,404,618 | ||
Knitting Machinery Company of America LLC [Member] | |||||
Cash Consideration Transferred | $ 250,000 | ||||
Fair Value of Stock Consideration | 1,000,012 | ||||
Total Consideration | 1,250,012 | ||||
Cash | 100,000 | ||||
Accounts Receivable | 155,932 | ||||
Inventory | 517,270 | ||||
Fixed Assets | 90,603 | ||||
Intangible Assets | 150,000 | ||||
Goodwill | 645,372 | $ 600,000 | $ 400,000 | ||
Total Assets Acquired | 1,659,177 | ||||
Accounts Payable | 33,694 | ||||
Deferred Revenue | 375,471 | ||||
Total Liabilities Assumed | 409,165 | ||||
Total Fair Value | 1,250,012 | ||||
Acquisition transaction costs incurred were: | $ 30,479 |
Note 12 - Acquisitions - Revenu
Note 12 - Acquisitions - Revenue and Net Income of Acquired Entities (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 110,058,884 | $ 95,094,396 |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 10,057,550 | 3,491,684 |
Reverso Pumps, Inc. [Member] | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 4,987,873 | 3,930,057 |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 863,978 | 663,070 |
Separ America [Member] | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 1,942,594 | 1,440,788 |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 617,175 | 247,346 |
Knitting Machinery Company of America LLC [Member] | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 229,080 | 818,108 |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 19,014 | 73,195 |
Acquired Entities [Member] | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 7,159,547 | 6,188,953 |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 1,500,167 | 983,611 |
All Other Entities [Member] | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 102,899,337 | 88,905,443 |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 8,557,383 | $ 2,508,073 |
Note 13 - Segment and Related_3
Note 13 - Segment and Related Information (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
Number of Reportable Segments | 2 |
Note 13 - Segment and Related_4
Note 13 - Segment and Related Information - Information by Industry Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Sales | $ 33,641,513 | $ 32,189,623 | $ 110,058,884 | $ 95,094,396 |
Gross profit | 8,909,332 | 6,309,803 | 29,900,761 | 19,444,700 |
Operating profit | 4,296,968 | 1,999,678 | 14,568,600 | 5,772,527 |
Interest charges | 294,825 | 331,156 | 1,030,729 | 746,237 |
(Gain) loss on investments | 135,522 | 101,370 | 17,040 | 535,439 |
Other (income) expense, net | (599) | (195,046) | (345,569) | (508,108) |
Income before Provision for Income Taxes | 3,867,220 | 1,762,198 | 13,866,400 | 4,998,959 |
Operating Segments [Member] | ||||
Sales | 33,641,513 | 32,189,623 | 110,058,884 | 95,094,396 |
Gross profit | 8,909,332 | 6,309,803 | 29,900,761 | 19,444,700 |
Operating profit | 5,287,544 | 2,655,304 | 18,487,144 | 8,721,822 |
Corporate and Reconciling Items [Member] | ||||
Operating profit | 990,576 | 655,626 | 3,918,544 | 2,949,295 |
Commercial Air Handling [Member] | Operating Segments [Member] | ||||
Sales | 12,728,949 | 11,485,339 | 43,640,142 | 34,888,594 |
Gross profit | 4,303,355 | 2,558,998 | 13,773,039 | 7,641,794 |
Operating profit | 3,339,289 | 1,522,819 | 10,742,038 | 4,467,716 |
Industrial and Transportation Products [Member] | Operating Segments [Member] | ||||
Sales | 20,912,564 | 20,704,284 | 66,418,742 | 60,205,802 |
Gross profit | 4,605,977 | 3,750,805 | 16,127,722 | 11,802,906 |
Operating profit | $ 1,948,255 | $ 1,132,485 | $ 7,745,106 | $ 4,254,106 |