Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Jan. 19, 2016 | May. 29, 2015 | |
Entity Registrant Name | ARTS WAY MANUFACTURING CO INC | ||
Entity Central Index Key | 7,623 | ||
Trading Symbol | artw | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 4,061,052 | ||
Entity Public Float | $ 11,158,555 | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Current assets: | ||
Cash | $ 447,334 | $ 511,716 |
Accounts receivable-customers, net of allowance for doubtful accounts of $18,810 and $35,175 in 2015 and 2014, respectively | 2,057,739 | 2,961,834 |
Inventories, net | 15,699,084 | 15,089,280 |
Deferred taxes | 1,146,242 | 1,259,943 |
Cost and Profit in Excess of Billings | 206,672 | 17,543 |
Income taxes receivable | 345,912 | 100,417 |
Other current assets | 59,336 | 125,229 |
Total current assets | 19,962,319 | 20,065,961 |
Property, plant, and equipment, net | $ 9,694,913 | 11,680,792 |
Assets held for lease, net | $ 58,500 | |
Assets held for sale, net | $ 1,245,432 | |
Goodwill | 375,000 | $ 993,729 |
Other Assets | 53,944 | 47,360 |
Total assets | 31,331,608 | 32,846,342 |
Current liabilities: | ||
Line of credit | 3,959,656 | 2,569,106 |
Current portion of term debt | 1,322,662 | 1,283,897 |
Accounts payable | 522,400 | 874,653 |
Customer deposits | 166,626 | 95,411 |
Billings in Excess of Cost and Profit | 86,858 | 96,382 |
Accrued expenses | 1,279,913 | 1,584,328 |
Total current liabilities | 7,338,115 | 6,503,777 |
Long-term liabilities | ||
Deferred taxes | 846,960 | 1,141,580 |
Long-term debt, excluding current portion | 4,626,667 | 5,949,329 |
Total liabilities | $ 12,811,742 | $ 13,594,686 |
Commitments and Contingencies (Notes 6 and 7) | ||
Stockholders’ equity: | ||
Undesignated preferred stock - $0.01 par value. Authorized 500,000 shares in 2015 and 2014; issued and outstanding 0 shares in 2015 and 2014. | $ 0 | $ 0 |
Common stock – $0.01 par value. Authorized 9,500,000 shares in 2015 and 2014; issued and outstanding 4,061,052 in 2015 and 4,048,552 in 2014 | 40,611 | 40,486 |
Additional paid-in capital | 2,667,010 | 2,638,651 |
Retained earnings | 15,812,245 | 16,572,519 |
Total stockholders’ equity | 18,519,866 | 19,251,656 |
Total liabilities and stockholders’ equity | $ 31,331,608 | $ 32,846,342 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Allowance for doubtful accounts | $ 18,810 | $ 35,175 |
Undesignated preferred stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Undesignated preferred stock - authorized shares (in shares) | 500,000 | 500,000 |
Undesignated preferred stock - issued shares (in shares) | 0 | 0 |
Undesignated preferred stock - outstanding shares (in shares) | 0 | 0 |
Common stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock - authorized shares (in shares) | 9,500,000 | 9,500,000 |
Common stock - issued shares (in shares) | 4,061,052 | 4,048,552 |
Common stock - outstanding shares (in shares) | 4,061,052 | 4,048,552 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Net sales | $ 27,935,791 | $ 36,169,811 |
Cost of goods sold | 20,952,109 | 27,445,242 |
Gross profit | 6,983,682 | 8,724,569 |
Expenses: | ||
Engineering | 500,820 | 482,057 |
Selling | 2,149,659 | 2,372,299 |
General and administrative | 4,736,866 | 4,205,375 |
Total expenses | 7,387,345 | 7,059,731 |
Income (loss) from operations | (403,663) | 1,664,838 |
Other income (expense): | ||
Interest expense | (329,455) | (351,899) |
Other | (131,944) | (10,434) |
Total other income (expense) | (461,399) | (362,333) |
Income (loss) before income taxes | (865,062) | 1,302,505 |
Current tax expense (benefit) | (307,220) | 367,258 |
Net income (loss) | $ (557,842) | $ 935,247 |
Net income per share: | ||
Basic net income (loss) per share (in dollars per share) | $ (0.14) | $ 0.23 |
Diluted net income (loss) per share (in dollars per share) | $ (0.14) | $ 0.23 |
Weighted average outstanding shares used to compute basic net income (loss) per share (in shares) | 4,058,382 | 4,047,796 |
Weighted average outstanding shares used to compute diluted net income (loss) per share (in shares) | 4,058,382 | 4,052,703 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Cash flows from operations: | ||
Net income (loss) | $ (557,842) | $ 935,247 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock based compensation | 28,484 | 14,504 |
(Gain) Loss on disposal of property, plant, and equipment | 123,405 | (6,268) |
Depreciation expense | 929,180 | 906,702 |
Impairment of goodwill | 618,729 | 0 |
Bad debt expense (recovery) | (4,605) | 4,539 |
Deferred income taxes | (180,919) | 157,089 |
Changes in assets and liabilities: | ||
Accounts receivable | 908,700 | 33,529 |
Inventories | (609,804) | (166,755) |
Income taxes receivable | (245,495) | 8,096 |
Other current assets | 59,308 | 69,559 |
Accounts payable | (352,253) | 68,447 |
Contracts in progress, net | (198,653) | 103,356 |
Customer deposits | 71,215 | (52,094) |
Accrued expenses | (304,415) | (134,147) |
Net cash provided by operating activities | 285,035 | 1,941,805 |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (292,543) | (633,078) |
Proceeds from sale of assets | 38,906 | 15,870 |
Net cash (used in) investing activities | (253,637) | (617,208) |
Cash flows from financing activities: | ||
Net change in line of credit | $ 1,390,550 | (780,894) |
Proceeds from term debt | 1,000,000 | |
Repayment of term debt | $ (1,283,897) | (1,247,697) |
Proceeds from the exercise of stock options | 0 | $ 7,760 |
Dividends paid to stockholders | (202,432) | |
Net cash (used in) financing activities | (95,779) | $ (1,020,831) |
Net increase (decrease) in cash | (64,381) | 303,766 |
Cash at beginning of period | 511,716 | 207,950 |
Cash at end of period | 447,334 | 511,716 |
Supplemental disclosures of cash flow information: | ||
Interest | 328,529 | 356,470 |
Income taxes | $ 282,614 | $ 299,988 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Nov. 30, 2013 | 4,046,552 | |||
Balance at Nov. 30, 2013 | $ 40,466 | $ 2,616,407 | $ 15,637,272 | $ 18,294,145 |
Exercise of stock options (in shares) | 2,000 | 2,000 | ||
Exercise of stock options | $ 20 | 7,740 | $ 7,760 | |
Stock based compensation | $ 14,504 | 14,504 | ||
Net income (loss) | $ 935,247 | $ 935,247 | ||
Balance (in shares) at Nov. 30, 2014 | 4,048,552 | 4,048,552 | ||
Balance at Nov. 30, 2014 | $ 40,486 | $ 2,638,651 | $ 16,572,519 | $ 19,251,656 |
Stock based compensation | $ 125 | $ 28,359 | 28,484 | |
Net income (loss) | $ (557,842) | $ (557,842) | ||
Balance (in shares) at Nov. 30, 2015 | 4,061,052 | 4,061,052 | ||
Balance at Nov. 30, 2015 | $ 40,611 | $ 2,667,010 | 15,812,245 | $ 18,519,866 |
Stock based compensation (in shares) | 12,500 | |||
Dividends paid, $0.05 per share | $ (202,432) | $ (202,432) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parentheticals) | 12 Months Ended |
Nov. 30, 2015$ / shares | |
Retained Earnings [Member] | |
Dividends paid, per share (in dollars per share) | $ 0.05 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Account Policies | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (1) Summary of Significant Accounting Policies (a) Nature of Business Art’s-Way Manufacturing Co., Inc. is primarily engaged in the fabrication and sale of specialized farm machinery in the agricultural sector of the United States. Primary product offerings include: portable and stationary animal feed processing equipment; hay and forage equipment; sugar beet harvesting equipment; land maintenance equipment; a line of portable grain augers; a line of manure spreaders; moldboard plows; potato harvesters; commercial snow blowers and a line of reels. The Company sells its labeled products through independent farm equipment dealers throughout the United States. In addition, the Company manufactures and supplies hay blowers to OEMs. The Company also provides after-market service parts that are available to keep its branded and OEM produced equipment operating to the satisfaction of the end user of the Company’s products. Our Pressurized Vessels segment is primarily engaged in the fabrication and sale of pressurized vessels and tanks through the Company’s wholly-owned subsidiary, Art’s-Way Vessels, Inc. This segment provides a combination of services as a manufacturer and supplier of steel vessels and steel containment systems. The vessels are primarily sold to manufacturing facilities that will use the vessel as a component part of their end product. In addition to its role as a fabricator of vessels, it provides services including: custom CAD drawing; welding; interior linings and exterior finishing; passivation of stainless steel; hydrostatic and pneumatic testing; design, build and finishing of skids; installation of piping; non-destructive examination and heat treating. Our Modular Buildings segment is primarily engaged in the construction of modular laboratories and animal housing facilities through the Company’s wholly-owned subsidiary, Art’s-Way Scientific, Inc. Buildings commonly produced range from basic swine buildings to complex containment research laboratories. This segment also provides services relating to the design, manufacturing, delivering, installation and renting of the building units that it produces. Our Tools segment is a domestic manufacturer and distributor of standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and tools through the Company’s wholly-owned subsidiary, Ohio Metal Working Company/Art’s Way, Inc. (b) Principles of Consolidation The consolidated financial statements include the accounts of Art’s-Way Manufacturing Co., Inc. and its wholly-owned subsidiaries for the 2015 fiscal year, Universal Harvester by Art’s-Way, Inc., Art’s-Way Vessels, Inc., Art’s-Way Scientific, Inc., Art’s-Way Manufacturing International LTD, and Ohio Metal Working Products/Art’s-Way, Inc. Universal Harvester by Art’s-Way was merged with the parent company of Art’s-Way Manufacturing Co. Inc, effective November 30, 2015. All material inter-company accounts and transactions are eliminated in consolidation. The financial books of International are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities be translated to U.S. Dollars at the exchange rate as of quarter end. Owner’s equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The Company monitors the resulting cumulative translation adjustment and considers it to be immaterial. (c) Cash Concentration The Company maintains several different accounts at four different banks, and balances in these accounts are periodically in excess of federally insured limits. However, management believes the risk of loss to be low. (d) Customer Concentration During the years ended November 30, 2015, and November 30, 2014 no one customer accounted for more than 5% and 7% of consolidated revenues, respectively. (e) Accounts Receivable Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written-off when deemed uncollectible. Recoveries of accounts receivable previously written-off are recorded when received. Accounts receivable are generally considered past due 60 days past invoice date, with the exception of international sales which primarily are sold with a letter of credit for 180 day terms. Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. Trade receivables are stated at the amount billed to the customer. The Company charges interest on overdue customer account balances at a rate of 1.5% per month. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. (f) Inventories Inventories are stated at the lower of cost or market, and cost is determined using the standard costing method. Management monitors the carrying value of inventories using inventory control and review processes that include, but are not limited to, sales forecast review, inventory status reports, and inventory reduction programs. The Company records inventory write downs to market based on expected usage information for raw materials and historical selling trends for finished goods. Additional write downs may be necessary if the assumptions made by management do not occur. (g) Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Depreciation of plant and equipment is provided using the straight-line method, based on the estimated useful lives of the assets which range from three to forty years. (h) Lessor Accounting Modular buildings held for short term lease by our Modular Buildings segment are recorded at cost. Amortization of the property is calculated over the useful life of the building. Estimated useful life is five years. Lease revenue is accounted for on a straight-line basis over the term of the related lease agreement. (i) Goodwill and Impairment Goodwill represents costs in excess of the fair value of net tangible and identifiable net intangible assets acquired in business combinations. Art’s-Way performs an annual test for impairment of goodwill during the fourth quarter, unless factors determine an earlier test is necessary. During the third quarter of fiscal 2015, an impairment test of the goodwill associated with the Universal Harvester subsidiary indicated an impairment of goodwill had occurred. Based on the testing, we incurred an impairment of goodwill of $618,729 in fiscal 2015. There had been no impairment of goodwill as of November 30, 2014. (j) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates as recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company shall classify interest and penalties to be paid on an underpayment of taxes as income tax expense. The Company files income tax returns in the U.S. federal jurisdiction and various states and Canada. The Company is no longer subject to Canadian, U.S. federal or state income tax examinations by tax authorities for years ended before November 30, 2011. (k) Revenue Recognition Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the shipment of the product. All sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies. Any changes in Company terms are documented in the most recently published price lists. Pricing is fixed and determinable according to the Company’s published equipment and parts price lists. Title to all equipment and parts sold shall pass to the Buyer upon delivery to the carrier and is not subject to a customer acceptance provision. Proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier. Post shipment obligations are limited to any claim with respect to the condition of the equipment or parts. Applicable sales taxes imposed on our revenues are presented on a net basis on the consolidated statements of operations and therefore do not impact net revenues or cost of goods sold. A provision for warranty expenses, based on sales volume, is included in the financial statements. The Company’s return policy allows for new and saleable parts to be returned, subject to inspection and a restocking charge which is included in net sales. Whole goods are not returnable. Shipping costs charged to customers are included in net sales. Freight costs incurred are included in cost of goods sold. In certain circumstances, upon the customer’s written request, we may recognize revenue when production is complete and the good is ready for shipment. At the buyer’s request, we will bill the buyer upon completing all performance obligations, but before shipment. The buyer dictates that we ship the goods per their direction from our manufacturing facility, as is customary with this type of agreement, in order to minimize shipping costs. The written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer, with a final specified delivery date, and that we will segregate the goods from our inventory, such that they are not available to fill other orders. This agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement. Title of the goods will pass to the buyer when the goods are complete and ready for shipment, per the customer agreement. At the transfer of title, all risks of ownership have passed to the buyer, and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped. The Company has operated using bill and hold agreements with certain customers for many years. The credit terms on this agreement are consistent with the credit terms on all other sales. All risks of loss are shouldered by the buyer, and there are no exceptions to the buyer’s commitment to accept and pay for these manufactured goods. Revenues recognized at the completion of production in 2015 and 2014 were approximately $634,000 and $628,000, respectively. Our Modular Buildings segment is in the construction industry, and as such accounts for long-term contracts on the percentage of completion method. Revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion. Contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss. Estimated contract costs include any and all costs appropriately allocable to the contract. The provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues. Costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities. (l) Research and Development Research and development costs are expensed when incurred. Such costs approximated $162,000 and $191,000 for the years ended November 30, 2015 and 2014, respectively. (m ) Advertising Advertising costs are expensed when incurred. Such costs approximated $488,000 and $511,000 for the years ended November 30, 2015 and 2014, respectively. (n) Income (Loss) Per Share Basic net income (loss) per common share has been computed on the basis of the weighted average number of common shares outstanding. Diluted net income (loss) per share has been computed on the basis of the weighted average number of common shares outstanding plus equivalent shares assuming exercise of stock options. Basic and diluted earnings per common share have been computed based on the following as of November 30, 2015 and 2014: For the twelve months ended November 30, 2015 November 30, 2014 Basic: Numerator: net income (loss) $ (557,842 ) $ 935,247 Denominator: average number of common shares outstanding 4,058,382 4,047,796 Basic earnings per common share $ (0.14 ) $ 0.23 Diluted: Numerator: net income (loss) $ (557,842 ) $ 935,247 Average number of common shares outstanding 4,058,382 4,047,796 Effect of dilutive stock options - 4,907 Denominator: dilutive average number of common shares outstanding 4,058,382 4,052,703 Diluted earnings per common share $ (0.14 ) $ 0.23 (o) Stock Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period. We estimate the fair value of each stock-based award on the measurement date using the Black-Scholes option valuation model which incorporates assumptions as to stock price volatility, the expected life of the options, risk-free interest rate and dividend yield. Restricted stock is valued at market value at the day of grant. (p) Use of Estimates Management of the Company has made a number of estimates and assumptions related to the reported amount of assets and liabilities, reported amount of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. (q) Recently Issued Accounting Pronouncements Presentation of an Unrecognized Tax Benefit In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” that clarifies how an unrecognized tax benefit should be presented in the financial statements when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists; as a reduction to a deferred tax asset or as a liability. The amendments are meant to eliminate the diversity that exists in the financial statement presentation of the unrecognized tax benefits. The amendments in this ASU do not require new recurring disclosures and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The effective date for the Company was the fiscal year beginning December 1, 2014. The Company currently has no unrecognized tax benefits that are impacted by the amendment and the adoption of this standard has not had a material impact on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic 605)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. We are evaluating the new standard, but do not at this time expect this standard to have a material impact on our consolidated financial statements. Going Concern In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern” which is authoritative guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and provide related footnote disclosures, codified in ASC 205-40, Going Concern Inventory In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330)”, which requires inventory measured using any method other than last-in, first-out or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than the lower of cost or market. ASU No. 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company will adopt this guidance for the year-ended November 30, 2017 including interim periods within that reporting period. Its adoption is not expected to have a material impact on our consolidated financial statements. |
Note 2 - Allowance for Doubtful
Note 2 - Allowance for Doubtful Accounts | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Allowance for Credit Losses [Text Block] | (2) Allowance for Doubtful Accounts A summary of the Company’s activity in the allowance for doubtful accounts is as follows: For the 12 months ended November 30, 2015 November 30, 2014 Balance, beginning $ 35,175 $ 35,474 Provision charged to expense (4,587 ) 4,539 Less amounts charged-off (11,778 ) (4,838 ) Balance, ending $ 18,810 $ 35,175 |
Note 3 - Inventories
Note 3 - Inventories | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | (3) Inventories Major classes of inventory are: November 30, 2015 November 30, 2014 Raw materials $ 10,058,894 $ 10,037,055 Work in process 458,526 467,110 Finished goods 8,204,843 8,504,062 $ 18,722,263 19,008,227 Less: Reserves (3,023,179 ) (3,918,947 ) $ 15,699,084 $ 15,089,280 |
Note 4 - Contracts in Progress
Note 4 - Contracts in Progress | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Long-term Contracts or Programs Disclosure [Text Block] | (4) Contracts in Progress Amounts included in the consolidated financial statements related to uncompleted contracts are as follows: The amounts billed on these long term contracts are due 30 days from invoice date. All amounts billed are expected to be collected within the next 12 months. Retainage was $27,951 and $8,048 as of November 30, 2015 and 2014, respectively. Cost and Profit in Billings in Excess of Excess of Billings Costs and Profit November 30, 2015 Costs $ 233,544 $ 695,915 Estimated earnings 75,822 227,442 309,366 923,357 Less: amounts billed (102,694 ) (1,010,215 ) $ 206,672 $ (86,858 ) November 30, 2014 Costs $ 14,724 $ 623,670 Estimated earnings 4,819 204,114 19,543 827,784 Less: amounts billed (2,000 ) (924,166 ) $ 17,543 $ (96,382 ) |
Note 5 - Property, Plant, and E
Note 5 - Property, Plant, and Equipment | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (5) Property, Plant, and Equipment Major classes of property, plant, and equipment are: November 30, 2015 November 30, 2014 Land $ 802,453 $ 1,188,155 Buildings and improvements 9,496,997 10,542,327 Construction in Progress 10,353 107,807 Manufacturing machinery and equipment 12,523,294 14,097,934 Trucks and automobiles 440,306 433,962 Furniture and fixtures 117,554 149,022 23,390,957 26,519,207 Less accumulated depreciation (13,696,044 ) (14,838,415 ) Property, plant and equipment $ 9,694,913 $ 11,680,792 Depreciation expense totaled $929,180 and $906,702 for the fiscal years ended November 30, 2015 and 2014, respectively. |
Note 6 - Assets Available for S
Note 6 - Assets Available for Sale | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (6) Assets Available for Sale Major components of assets available for sale are: November 30, 2015 November 30, 2014 Ames, Iowa production facility $ 1,093,632 $ - Monona, Iowa storage building 36,942 - Ames, Iowa powder coat paint system 114,858 - $ 1,245,432 $ - Due to reduced demand for our reels produced by the Universal Harvester by Art’s Way subsidiary, we have been able to absorb the production of the reels in our Armstrong, Iowa facility. The Ames, Iowa facility is currently under contract to be sold for $1,192,000 less closing expenses. Closing is subject to customary closing conditions and is expected to occur during the first quarter of fiscal 2016. The storage facility in Monona, Iowa is adjacent to our production facilities, and was sold in December 2015. We recorded a gain of $8,046 in December 2015 after closing costs associated with the sale. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | (7) Accrued Expenses Major components of accrued expenses are: November 30, 2015 November 30, 2014 Salaries, wages, and commissions $ 564,098 $ 673,934 Accrued warranty expense 179,531 234,266 Other 536,284 676,128 $ 1,279,913 $ 1,584,328 |
Note 8 - Product Warranty
Note 8 - Product Warranty | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | (8) Product Warranty The Company offers warranties of various lengths to its customers depending on the specific product and terms of the customer purchase agreement. The average length of the warranty period is 1 year from date of purchase. The Company’s warranties require it to repair or replace defective products during the warranty period at no cost to the customer. The Company records a liability for estimated costs that may be incurred under its warranties. The costs are estimated based on historical experience and any specific warranty issues that have been identified. Although historical warranty costs have been within expectations, there can be no assurance that future warranty costs will not exceed historical amounts. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the balance as necessary. Changes in the Company’s product warranty liability included in “accrued expenses” for the years ended November 30, 2015 and 2014 are as follows: November 30, 2015 November 30, 2014 Balance, beginning $ 234,265 $ 220,719 Settlements / adjustments (329,672 ) (421,787 ) Warranties issued 274,938 435,333 Balance, ending $ 179,531 $ 234,265 |
Note 9 - Loan and Credit Agreem
Note 9 - Loan and Credit Agreements | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | ( 9 ) Loan and Credit Agreements On May 1, 2013, the Company began a banking relationship with U.S. Bank, which includes an $8,000,000 revolving line of credit (the “Line of Credit”) which was renewed in 2014 and was scheduled to mature on May 1, 2015. The Line of Credit is renewable annually with advances funding the Company’s working capital needs and is secured by real property and fixed asset collateral. On May 1, 2015, we signed an extension for the line of credit extending the maturity date to July 1, 2015; on June 23, 2015 we signed an additional extension, extending the maturity date to May 1, 2016. We expect to renew the Line of Credit prior to its maturity date. The interest rate is U.S. Bank’s prime interest rate, adjusted each time that the Federal prime rate changes, with a minimum rate of 3.50% per annum. As of November 30, 2015, the interest rate was the minimum of 3.50%. Monthly interest-only payments are required and the unpaid principal and accrued interest is due on the maturity date. As of November 30, 2015, the Company had a principal balance of $3,959,656 outstanding against the Line of Credit, with $3,026,677 remaining available, limited by the borrowing base calculation. The Line of Credit states that the borrowing base will be an amount equal to the sum of 75% of accounts receivable (discounted for aged accounts and customer balances exceeding 20% of aggregate receivables), plus 50% of inventory (this component cannot exceed $6,000,000 and only includes finished goods and raw materials deemed to be in good condition and not obsolete), less any outstanding loan balance of the Line of Credit, and less undrawn amounts of outstanding letters of credit issued by U.S. Bank or any affiliate. The Company’s obligations under the Line of Credit are evidenced by a Revolving Credit Note effective May 1, 2013, a Revolving Credit Agreement dated May 1, 2013 and certain other ancillary documents. In addition to the Line of Credit, on May 1, 2013, the Company obtained four U.S. Bank loans totaling $6,319,000 at a fixed interest rate of 2.98% per annum (the “2013 U.S. Bank Term Loans”). As detailed in the Company’s long-term debt summary below, monthly principal and interest payments in the aggregate amount of $93,850 are required, with final payments of principal and accrued interest on the four loans, in the aggregate amount of $1,372,000, due on May 1, 2018. On May 29, 2014, the Company obtained $1,000,000 in long-term debt from U.S. Bank to partially pay down the Line of Credit draw from 2013 that it had used to finance the purchase of the building and property of Ohio Metal Working Products Company in Canton, Ohio. The maturity date of this loan is May 25, 2017, with a final payment of principal and accrued interest in the amount of $890,000 due May 25, 2017. This loan is secured by a mortgage on the building and property acquired from Ohio Metal Working Products Company in Canton, Ohio pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated May 29, 2014, and is also subject to a Business Security Agreement between Ohio Metal Working Products/Art’s Way, Inc. (“Ohio Metal”) and U.S. Bank and a Continuing Guaranty (Unlimited) by Ohio Metal. On July 16, 2015, the Company obtained an additional $1,500,000 revolving line of credit from U.S. Bank that matures on May 1, 2016 (the “2015 Line of Credit”). The Company has begun a new sales incentive program that offers extended payment terms up to 9 months on certain products for our dealers, subject to a Dealer’s Note and Dealer’s Security Agreement. These notes receivable would not be included in the borrowing base of our Line of Credit, so the 2015 Line of Credit was necessary to preserve our access to capital. The 2015 Line of Credit is secured by real property and fixed asset collateral, as well as all of the Company’s right, title and interest in the Dealer’s Notes and Dealer’s Security Agreements related to advances under the 2015 Line of Credit. The interest rate is U.S. Bank’s prime interest rate, adjusted each time that the Federal prime rate changes, with a minimum rate of 3.50% per annum. As of November 30, 2015, the interest rate was the minimum of 3.50%. Advances under the 2015 Line of Credit are due at the earlier of nine months after the date of the advancement, the 2015 Line of Credit maturity date or the sale by the dealer of the equipment relating to the applicable advance. Monthly interest-only payments are required and the unpaid principal and accrued interest is due on the maturity date. As of November 30, 2015, the Company had a principal balance of $0 outstanding against the 2015 Line of Credit, with $1,500,000 remaining available. The Company’s obligations under the 2015 Line of Credit are evidenced by a Promissory Note effective July 16, 2015 and certain other ancillary documents. Except for the 2015 Line of Credit and the U.S. Bank UHC Loan (as defined below), each of the Company’s term loans from U.S. Bank is governed by a Term Note and a Term Loan Agreement. Each Term Loan Agreement and the Revolving Credit Agreement require the Company to provide monthly internally prepared financial reports, year-end audited financial statements, and a monthly aging of accounts receivable. The Company, as of the end of each fiscal quarter, must maintain a debt to tangible net worth ratio of not more than 1.5 to 1.0 and a fixed charge coverage ratio of at least 1.15 to 1.00. The loans are secured by a first position security interest on the assets of the Company and its subsidiaries, including but not limited to, inventories, machinery, equipment and real estate, in accordance with the Business Security Agreements entered into by the Company and its subsidiaries, the Pledge Agreements entered into by the subsidiaries and the Collateral Assignment of Dealer’s Notes and Security Agreements entered into by the Company. Additionally, the Company has mortgaged certain real property in favor of U.S. Bank as documented by mortgage agreements dated May 1, 2013 and May 29, 2014 (together, the “Mortgages”). If the Company or its subsidiaries (as guarantors pursuant to continuing guaranties) commits an event of default under the Term Loan Agreements, Business Security Agreements, Pledge Agreements, Mortgages, or Revolving Credit Agreement and fails or is unable to cure that default, the interest rate on each of the loans and Line of Credit could increase by 5.0% per annum and by 10.0% per annum with respect to the 2015 Line of Credit, and U.S. Bank can immediately terminate its obligation, if any, to make additional loans to the Company. In addition, U.S. Bank may accelerate the Company’s obligations under the 2015 Line of Credit, collect any and all money otherwise due or to become due and shall have all other rights and remedies for default provided by the Uniform Commercial Code, as well as any other applicable law and the various loan agreements, including, without limitation, the right to repossess, render unusable and/or dispose of the collateral without judicial process. In addition, in an event of default, U.S. Bank may foreclose on mortgaged property pursuant to the terms of the Mortgages. The Company was in compliance with all covenants under the Term Loan Agreements and the Revolving Credit Agreement as measured on November 30, 2015, other than its covenant to maintain a fixed charge coverage ratio of at least 1.15 to 1.00. The fixed charge coverage ratio is based on a rolling 12 month calculation and measures the Company’s ability to cover fixed expenses such as loan payments, tax payments, rental payments, and dividends. The net loss in fiscal 2015 from operations was the main reason for the non-compliance result as of November 30, 2015. US Bank has issued a waiver forgiving the non-compliance for the fourth quarter and no event of default occurred. The next measurement date is February 29, 2016. On May 10, 2012, the Company obtained $880,000 in long-term debt from U.S. Bank in connection with the acquisition of the building and property of Universal Harvester Co., Inc. located in Ames, Iowa (the “U.S. Bank UHC Loan”). The maturity date of this loan is May 10, 2017, with a final payment of principal and accrued interest in the amount of $283,500 due May 10, 2017. This loan is secured by a mortgage on the buildings and properties owned by the Company pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated May 10, 2012. On May 1, 2013, the U.S. Bank UHC Loan and the mortgage were amended to extend the mortgage to secure the 2013 U.S. Bank Term Loans in addition to the U.S. Bank UHC Loan. If the Company or its subsidiaries (as guarantors) commits an event of default under the agreement governing the U.S. Bank UHC Loan and fails or is unable to cure during any applicable cure periods, the lender may cause the entire amount of the loan to be immediately due and payable, may foreclose on the property, or may increase the interest rate to 5.00% per annum, plus the interest rate otherwise payable under the U.S. Bank UHC Loan. On May 1, 2010, the Company obtained a loan to finance the purchase of an additional facility located in West Union, Iowa to be used as a distribution center, warehouse facility, and manufacturing plant for certain products under the Art’s-Way brand. The funds for this loan were made available by the Iowa Finance Authority by the issuance of tax exempt bonds. This loan had an original principal amount of $1,300,000, an interest rate of 3.5% per annum and a maturity date of June 1, 2020. On February 1, 2013, the interest rate was decreased to 2.75% per annum. The other terms of the loan remain unchanged. This loan from the Iowa Finance Authority, which has been assigned to The First National Bank of West Union (n/k/a Bank 1 st If the Company commits an event of default under the IFA Loan Agreement and does not cure the event of default within the time specified by the IFA Loan Agreement, the lender may cause the entire amount of the loan to be immediately due and payable and take any other action that it is lawfully permitted to take or in equity to enforce the Company’s performance. The Company was in compliance with all covenants except the debt service coverage ratio under the IFA Loan Agreement as measured on November 30, 2015. The First National Bank of West Union has issued a waiver forgiving the noncompliance for the year ended November 30, 2015, and no event of default has occurred. The next measurement date is November 30, 2016. A summary of the Company’s term debt is as follows: November 30, 2015 November 30, 2014 U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 $ 1,196,088 $ 1,662,311 U.S. Bank loan payable in monthly installments of $11,000 including interest at 2.98%, due May 1, 2018 743,149 850,930 U.S. Bank loan payable in monthly installments of $12,550 including interest at 2.98%, due May 1, 2018 842,769 965,889 U.S. Bank loan payable in monthly installments of $27,800 including interest at 2.98%, due May 1, 2018 1,112,205 1,407,366 U.S. Bank loan payable in monthly installments of $11,700 including interest at 3.15%, due May 10, 2017 464,605 588,101 U.S. Bank loan payable in monthly installments of $5,556 including interest at 2.98%, due May 25, 2017 943,381 980,940 Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 647,132 777,689 Total term debt $ 5,949,329 $ 7,233,226 Less current portion of term debt 1,322,662 1,283,897 Term debt, excluding current portion $ 4,626,667 $ 5,949,329 A summary of the minimum maturities of term debt follows for the years ending November 30: Year: Amount 2016 $ 1,322,662 2017 2,433,938 2018 1,947,128 2019 145,585 2020 110,016 2021 and thereafter - $ 5,959,329 |
Note 10 - Related Party Transac
Note 10 - Related Party Transactions | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | (10) Related Party Transactions During fiscal years 2015 and 2014, the Company recognized revenues of $32,000 and $59,000, respectively, with a related party. On November 30, 2015, the accounts receivable balance contains $9,600 due from a related party, compared to $0 as of November 30, 2014. |
Note 11 - Employee Benefit Plan
Note 11 - Employee Benefit Plans | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | (11) Employee Benefit Plans The Company sponsors a defined contribution 401(k) savings plan which covers substantially all full-time employees who meet eligibility requirements. Participating employees may contribute as salary reductions any amount of their compensation up to the limit prescribed by the Internal Revenue Code. The Company makes a 25% matching contribution to employees contributing a minimum of 4% of their compensation, up to 1% of eligible compensation. The Company recognized an expense of $47,466 and $54,544 related to this plan during the years ended November 30, 2015 and 2014, respectively. |
Note 12 - Equity Incentive Plan
Note 12 - Equity Incentive Plan | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (12) Equity Incentive Plan On November 30, 2015, the Company had one equity incentive plan, the 2011 Plan, which is described below. The compensation cost charged against income was $28,484 and $14,504 for 2015 and 2014, respectively, for all awards granted under the 2011 Plan during such years. The total income tax deductions for share-based compensation arrangements were $20,462 and $10,500 for 2015 and 2014 respectively. No compensation cost was capitalized as part of inventory or fixed assets. On January 27, 2011, the Board of Directors of the Company authorized and approved the Art’s-Way Manufacturing Co., Inc. 2011 Equity Incentive Plan (the “2011 Plan”), subject to approval by the stockholders on or before January 27, 2012. The 2011 Plan was approved by the stockholders on April 28, 2011. It replaced the Employee Stock Option Plan and the Directors’ Stock Option Plan (collectively, the “Prior Plans”), and no further stock options will be awarded under the Prior Plans. Awards to directors and executive officers under the 2011 Plan will be governed by the forms of agreement approved by the Board of Directors. The 2011 Plan permits the plan administrator to award nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance awards, and stock appreciation rights to employees (including officers), directors, and consultants. The Board of Directors has approved a director compensation policy pursuant to which non-employee directors are granted non-qualified stock options to purchase 2,000 shares of common stock annually upon their election to the board, which are fully vested. In addition, directors may elect to receive cash retainer fees in the form of fully-vested restricted stock issued under the 2011 Plan. Stock options granted prior to January 27, 2011 are governed by the applicable Prior Plan and the forms of agreement adopted thereunder. The fair value of each option award is estimated on the date of grant using the Black Scholes option-pricing model. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical option exercise and termination data to estimate the expected term the options are expected to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is calculated using historical dividend amounts and the stock price at the option issuance date. 2015 2014 Expected Volatility 30.55 % 32.28% Expected Dividend Yield 1.574 % 1.236% - 1.277% Expected Term (in years) 2 2 Risk-Free Rate 3.25 % 3.25% Summary of activity under the plans as of November 30, 2015 and 2014, and changes during the years then ended as follows: 2015 Option Activity Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options Outstanding at beginning of period 160,000 $ 8.72 - - Granted 14,000 $ 4.70 - - Exercised - $ - - - Options Expired or Forfeited - $ - - - Options Outstanding at end of Period 174,000 $ 8.39 4.68 - Options Exercisable at end of Period 169,000 $ 8.47 4.57 - 2014 Option Activity Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options Outstanding at beginning of period 143,000 $ 9.00 - - Granted 19,000 $ 6.10 - - Exercised (2,000 ) $ 3.88 - $ 4,020 Options Expired or Forfeited - $ - - - Options Outstanding at end of Period 160,000 $ 8.72 5.14 $ 15,400 Options Exercisable at end of Period 155,000 $ 8.81 5.27 $ 15,400 The weighted-average grant-date fair value of options granted during the year 2015 and 2014 was $0.84 and $1.17 respectively. Compensation expense of $8,022 and $11,264 was recognized in 2015 and 2014, respectively, for the issuance of stock options. A summary of the status of the Company’s non-vested option shares as of November 30, 2015, and changes during the year ended November 30, 2015, is presented below: Non-vested Option Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at beginning of period 5,000 Granted 14,000 $ 0.84 Vested (14,000 ) $ 0.84 Forfeited - $ 0.00 Non-vested at end of period 5,000 As of November 30, 2015, there was $3,881 unrecognized compensation cost related to non-vested share-based compensation arrangements under the plan related to stock options. The total fair value of options vested during the years ended November 30, 2015 and 2014 was $0 and $0 respectively. The cash received from the exercise of options during fiscal year 2015 was $0, compared to $7,760 in 2014. During the fiscal year 2015 the Company issued 12,500 shares of restricted stock, and 4,150 shares of restricted stock became unrestricted. During fiscal year 2014 the Company issued 0 shares of restricted stock, and 500 shares of restricted stock became unrestricted under the 2011 Plan. Compensation expense of $20,462 and $3,240 was recognized in 2015 and 2014, respectively, for shares of restricted stock. |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (13) Income Taxes Total income tax expense (benefit) for the years ended November 30, 2015 and 2014 consists of the following: November 30, 2015 November 30, 2014 Current Expense (benefit) $ (126,301 ) $ 307,452 Deferred expense (benefit) (180,919 ) 59,806 $ (307,220 ) $ 367,258 The reconciliation of the statutory Federal income tax rate is as follows: November 30, 2015 November 30, 2014 Statutory federal income tax rate 34.0 % 34.0 % R&D tax credits - (2.0 ) Permanent Differences and Other 1.5 (3.8 ) 35.5 % 28.2 % Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2015 and 2014 are presented below: November 30 2015 2014 Current deferred tax assets (liabilities): Accrued expenses $ 126,000 $ 147,000 Inventory capitalization 21,000 22,000 Asset reserves 999,000 1,091,000 Total current deferred tax assets $ 1,146,000 $ 1,260,000 Non-current deferrred tax assets Property, plant, and equipment $ (847,000 ) $ (1,142,000 ) Total non-current deferred tax assets (liabilities) $ (847,000 ) $ (1,142,000 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. |
Note 14 - Disclosures about the
Note 14 - Disclosures about the Fair Value of Financial Instruments | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | (14) Disclosures About the Fair Value of Financial Instruments At November 30, 2015 and 2014, the carrying amount approximates fair value for cash, accounts receivable, accounts payable, notes payable to bank, and other current liabilities due to the short maturity of these instruments. The fair value of the Company’s installment term loans payable also approximate recorded value because the interest rates charged under the loan terms are not substantially different than current interest rates. |
Note 15 - Litigation and Contin
Note 15 - Litigation and Contingencies | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | (15) Litigation and Contingencies Various legal actions and claims that arise in the normal course of business are pending against the Company. In the opinion of management adequate provisions have been made in the accompanying financial statements for all pending legal actions and other claims. |
Note 16 - Segment Information
Note 16 - Segment Information | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (16) Segment Information There are four reportable segments: agricultural products, pressurized vessels, modular buildings, and tools. The agricultural products segment fabricates and sells farming products as well as replacement parts for these products in the United States and worldwide. The pressurized vessel segment produces and services pressurized tanks. The modular building segment produces modular buildings for animal containment and various laboratory uses. The tools segment manufactures steel cutting tools and inserts. The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. Management evaluates the performance of each segment based on profit or loss from operations before income taxes. Approximate financial information with respect to the reportable segments is as follows. Twelve Months Ended November 30, 2015 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 20,756,000 $ 1,610,000 $ 3,191,000 $ 2,379,000 $ 27,936,000 Gross Profit 5,310,000 72,000 970,000 632,000 $ 6,984,000 Operating Expense 5,394,000 399,000 820,000 775,000 $ 7,388,000 Income (loss) from operations (84,000 ) (327,000 ) 150,000 (143,000 ) $ (404,000 ) Income (loss) before tax (438,000 ) (354,000 ) 124,000 (197,000 ) $ (865,000 ) Total Assets 22,696,000 2,565,000 3,181,000 2,890,000 $ 31,332,000 Capital expenditures 219,000 54,000 9,000 11,000 $ 293,000 Depreciation & Amortization 585,000 107,000 125,000 119,000 $ 936,000 Twelve Months Ended November 30, 2014 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 27,952,000 $ 1,736,000 $ 2,965,000 $ 3,517,000 $ 36,170,000 Gross Profit 7,150,000 39,000 626,000 910,000 $ 8,725,000 Operating Expense 5,051,000 351,000 768,000 890,000 $ 7,060,000 Income (loss) from operations 2,099,000 (312,000 ) (142,000 ) 20,000 $ 1,665,000 Income (loss) before tax 1,842,000 (341,000 ) (165,000 ) (33,000 ) $ 1,303,000 Total Assets 24,585,000 2,548,000 2,503,000 3,210,000 $ 32,846,000 Capital expenditures 581,000 27,000 - 25,000 $ 633,000 Depreciation & Amortization 537,000 108,000 146,000 116,000 $ 907,000 |
Note 17 - Subsequent Event
Note 17 - Subsequent Event | 12 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (17) Subsequent Events Management evaluated all other activity of the Company and concluded that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Nature of Business Art’s-Way Manufacturing Co., Inc. is primarily engaged in the fabrication and sale of specialized farm machinery in the agricultural sector of the United States. Primary product offerings include: portable and stationary animal feed processing equipment; hay and forage equipment; sugar beet harvesting equipment; land maintenance equipment; a line of portable grain augers; a line of manure spreaders; moldboard plows; potato harvesters; commercial snow blowers and a line of reels. The Company sells its labeled products through independent farm equipment dealers throughout the United States. In addition, the Company manufactures and supplies hay blowers to OEMs. The Company also provides after-market service parts that are available to keep its branded and OEM produced equipment operating to the satisfaction of the end user of the Company’s products. Our Pressurized Vessels segment is primarily engaged in the fabrication and sale of pressurized vessels and tanks through the Company’s wholly-owned subsidiary, Art’s-Way Vessels, Inc. This segment provides a combination of services as a manufacturer and supplier of steel vessels and steel containment systems. The vessels are primarily sold to manufacturing facilities that will use the vessel as a component part of their end product. In addition to its role as a fabricator of vessels, it provides services including: custom CAD drawing; welding; interior linings and exterior finishing; passivation of stainless steel; hydrostatic and pneumatic testing; design, build and finishing of skids; installation of piping; non-destructive examination and heat treating. Our Modular Buildings segment is primarily engaged in the construction of modular laboratories and animal housing facilities through the Company’s wholly-owned subsidiary, Art’s-Way Scientific, Inc. Buildings commonly produced range from basic swine buildings to complex containment research laboratories. This segment also provides services relating to the design, manufacturing, delivering, installation and renting of the building units that it produces. Our Tools segment is a domestic manufacturer and distributor of standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and tools through the Company’s wholly-owned subsidiary, Ohio Metal Working Company/Art’s Way, Inc. |
Consolidation, Policy [Policy Text Block] | (b) Principles of Consolidation The consolidated financial statements include the accounts of Art’s-Way Manufacturing Co., Inc. and its wholly-owned subsidiaries for the 2015 fiscal year, Universal Harvester by Art’s-Way, Inc., Art’s-Way Vessels, Inc., Art’s-Way Scientific, Inc., Art’s-Way Manufacturing International LTD, and Ohio Metal Working Products/Art’s-Way, Inc. Universal Harvester by Art’s-Way was merged with the parent company of Art’s-Way Manufacturing Co. Inc, effective November 30, 2015. All material inter-company accounts and transactions are eliminated in consolidation. The financial books of International are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities be translated to U.S. Dollars at the exchange rate as of quarter end. Owner’s equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The Company monitors the resulting cumulative translation adjustment and considers it to be immaterial. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (c) Cash Concentration The Company maintains several different accounts at four different banks, and balances in these accounts are periodically in excess of federally insured limits. However, management believes the risk of loss to be low. |
Major Customers, Policy [Policy Text Block] | (d) Customer Concentration During the years ended November 30, 2015, and November 30, 2014 no one customer accounted for more than 5% and 7% of consolidated revenues, respectively. |
Receivables, Policy [Policy Text Block] | (e) Accounts Receivable Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written-off when deemed uncollectible. Recoveries of accounts receivable previously written-off are recorded when received. Accounts receivable are generally considered past due 60 days past invoice date, with the exception of international sales which primarily are sold with a letter of credit for 180 day terms. Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. Trade receivables are stated at the amount billed to the customer. The Company charges interest on overdue customer account balances at a rate of 1.5% per month. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. |
Inventory, Policy [Policy Text Block] | (f) Inventories Inventories are stated at the lower of cost or market, and cost is determined using the standard costing method. Management monitors the carrying value of inventories using inventory control and review processes that include, but are not limited to, sales forecast review, inventory status reports, and inventory reduction programs. The Company records inventory write downs to market based on expected usage information for raw materials and historical selling trends for finished goods. Additional write downs may be necessary if the assumptions made by management do not occur. |
Property, Plant and Equipment, Policy [Policy Text Block] | (g) Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Depreciation of plant and equipment is provided using the straight-line method, based on the estimated useful lives of the assets which range from three to forty years. |
Lease, Policy [Policy Text Block] | (h) Lessor Accounting Modular buildings held for short term lease by our Modular Buildings segment are recorded at cost. Amortization of the property is calculated over the useful life of the building. Estimated useful life is five years. Lease revenue is accounted for on a straight-line basis over the term of the related lease agreement. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | (i) Goodwill and Impairment Goodwill represents costs in excess of the fair value of net tangible and identifiable net intangible assets acquired in business combinations. Art’s-Way performs an annual test for impairment of goodwill during the fourth quarter, unless factors determine an earlier test is necessary. During the third quarter of fiscal 2015, an impairment test of the goodwill associated with the Universal Harvester subsidiary indicated an impairment of goodwill had occurred. Based on the testing, we incurred an impairment of goodwill of $618,729 in fiscal 2015. There had been no impairment of goodwill as of November 30, 2014. |
Income Tax, Policy [Policy Text Block] | (j) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates as recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company shall classify interest and penalties to be paid on an underpayment of taxes as income tax expense. The Company files income tax returns in the U.S. federal jurisdiction and various states and Canada. The Company is no longer subject to Canadian, U.S. federal or state income tax examinations by tax authorities for years ended before November 30, 2011. |
Revenue Recognition, Policy [Policy Text Block] | (k) Revenue Recognition Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the shipment of the product. All sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies. Any changes in Company terms are documented in the most recently published price lists. Pricing is fixed and determinable according to the Company’s published equipment and parts price lists. Title to all equipment and parts sold shall pass to the Buyer upon delivery to the carrier and is not subject to a customer acceptance provision. Proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier. Post shipment obligations are limited to any claim with respect to the condition of the equipment or parts. Applicable sales taxes imposed on our revenues are presented on a net basis on the consolidated statements of operations and therefore do not impact net revenues or cost of goods sold. A provision for warranty expenses, based on sales volume, is included in the financial statements. The Company’s return policy allows for new and saleable parts to be returned, subject to inspection and a restocking charge which is included in net sales. Whole goods are not returnable. Shipping costs charged to customers are included in net sales. Freight costs incurred are included in cost of goods sold. In certain circumstances, upon the customer’s written request, we may recognize revenue when production is complete and the good is ready for shipment. At the buyer’s request, we will bill the buyer upon completing all performance obligations, but before shipment. The buyer dictates that we ship the goods per their direction from our manufacturing facility, as is customary with this type of agreement, in order to minimize shipping costs. The written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer, with a final specified delivery date, and that we will segregate the goods from our inventory, such that they are not available to fill other orders. This agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement. Title of the goods will pass to the buyer when the goods are complete and ready for shipment, per the customer agreement. At the transfer of title, all risks of ownership have passed to the buyer, and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped. The Company has operated using bill and hold agreements with certain customers for many years. The credit terms on this agreement are consistent with the credit terms on all other sales. All risks of loss are shouldered by the buyer, and there are no exceptions to the buyer’s commitment to accept and pay for these manufactured goods. Revenues recognized at the completion of production in 2015 and 2014 were approximately $634,000 and $628,000, respectively. Our Modular Buildings segment is in the construction industry, and as such accounts for long-term contracts on the percentage of completion method. Revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion. Contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss. Estimated contract costs include any and all costs appropriately allocable to the contract. The provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues. Costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities. |
Research and Development Expense, Policy [Policy Text Block] | (l) Research and Development Research and development costs are expensed when incurred. Such costs approximated $162,000 and $191,000 for the years ended November 30, 2015 and 2014, respectively. |
Advertising Costs, Policy [Policy Text Block] | (m ) Advertising Advertising costs are expensed when incurred. Such costs approximated $488,000 and $511,000 for the years ended November 30, 2015 and 2014, respectively. |
Earnings Per Share, Policy [Policy Text Block] | (n) Income (Loss) Per Share Basic net income (loss) per common share has been computed on the basis of the weighted average number of common shares outstanding. Diluted net income (loss) per share has been computed on the basis of the weighted average number of common shares outstanding plus equivalent shares assuming exercise of stock options. Basic and diluted earnings per common share have been computed based on the following as of November 30, 2015 and 2014: For the twelve months ended November 30, 2015 November 30, 2014 Basic: Numerator: net income (loss) $ (557,842 ) $ 935,247 Denominator: average number of common shares outstanding 4,058,382 4,047,796 Basic earnings per common share $ (0.14 ) $ 0.23 Diluted: Numerator: net income (loss) $ (557,842 ) $ 935,247 Average number of common shares outstanding 4,058,382 4,047,796 Effect of dilutive stock options - 4,907 Denominator: dilutive average number of common shares outstanding 4,058,382 4,052,703 Diluted earnings per common share $ (0.14 ) $ 0.23 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | (o) Stock Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period. We estimate the fair value of each stock-based award on the measurement date using the Black-Scholes option valuation model which incorporates assumptions as to stock price volatility, the expected life of the options, risk-free interest rate and dividend yield. Restricted stock is valued at market value at the day of grant. |
Use of Estimates, Policy [Policy Text Block] | (p) Use of Estimates Management of the Company has made a number of estimates and assumptions related to the reported amount of assets and liabilities, reported amount of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | (q) Recently Issued Accounting Pronouncements Presentation of an Unrecognized Tax Benefit In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” that clarifies how an unrecognized tax benefit should be presented in the financial statements when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists; as a reduction to a deferred tax asset or as a liability. The amendments are meant to eliminate the diversity that exists in the financial statement presentation of the unrecognized tax benefits. The amendments in this ASU do not require new recurring disclosures and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The effective date for the Company was the fiscal year beginning December 1, 2014. The Company currently has no unrecognized tax benefits that are impacted by the amendment and the adoption of this standard has not had a material impact on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic 605)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. We are evaluating the new standard, but do not at this time expect this standard to have a material impact on our consolidated financial statements. Going Concern In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern” which is authoritative guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and provide related footnote disclosures, codified in ASC 205-40, Going Concern Inventory In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330)”, which requires inventory measured using any method other than last-in, first-out or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than the lower of cost or market. ASU No. 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company will adopt this guidance for the year-ended November 30, 2017 including interim periods within that reporting period. Its adoption is not expected to have a material impact on our consolidated financial statements. |
Note 1 - Summary of Significa26
Note 1 - Summary of Significant Account Policies (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the twelve months ended November 30, 2015 November 30, 2014 Basic: Numerator: net income (loss) $ (557,842 ) $ 935,247 Denominator: average number of common shares outstanding 4,058,382 4,047,796 Basic earnings per common share $ (0.14 ) $ 0.23 Diluted: Numerator: net income (loss) $ (557,842 ) $ 935,247 Average number of common shares outstanding 4,058,382 4,047,796 Effect of dilutive stock options - 4,907 Denominator: dilutive average number of common shares outstanding 4,058,382 4,052,703 Diluted earnings per common share $ (0.14 ) $ 0.23 |
Note 2 - Allowance for Doubtf27
Note 2 - Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | For the 12 months ended November 30, 2015 November 30, 2014 Balance, beginning $ 35,175 $ 35,474 Provision charged to expense (4,587 ) 4,539 Less amounts charged-off (11,778 ) (4,838 ) Balance, ending $ 18,810 $ 35,175 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2015 November 30, 2014 Raw materials $ 10,058,894 $ 10,037,055 Work in process 458,526 467,110 Finished goods 8,204,843 8,504,062 $ 18,722,263 19,008,227 Less: Reserves (3,023,179 ) (3,918,947 ) $ 15,699,084 $ 15,089,280 |
Note 4 - Contracts in Progress
Note 4 - Contracts in Progress (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Long Term Contracts [Table Text Block] | Cost and Profit in Billings in Excess of Excess of Billings Costs and Profit November 30, 2015 Costs $ 233,544 $ 695,915 Estimated earnings 75,822 227,442 309,366 923,357 Less: amounts billed (102,694 ) (1,010,215 ) $ 206,672 $ (86,858 ) November 30, 2014 Costs $ 14,724 $ 623,670 Estimated earnings 4,819 204,114 19,543 827,784 Less: amounts billed (2,000 ) (924,166 ) $ 17,543 $ (96,382 ) |
Note 5 - Property, Plant, and30
Note 5 - Property, Plant, and Equipment (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 2015 November 30, 2014 Land $ 802,453 $ 1,188,155 Buildings and improvements 9,496,997 10,542,327 Construction in Progress 10,353 107,807 Manufacturing machinery and equipment 12,523,294 14,097,934 Trucks and automobiles 440,306 433,962 Furniture and fixtures 117,554 149,022 23,390,957 26,519,207 Less accumulated depreciation (13,696,044 ) (14,838,415 ) Property, plant and equipment $ 9,694,913 $ 11,680,792 |
Note 6 - Assets Available for31
Note 6 - Assets Available for Sale (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | November 30, 2015 November 30, 2014 Ames, Iowa production facility $ 1,093,632 $ - Monona, Iowa storage building 36,942 - Ames, Iowa powder coat paint system 114,858 - $ 1,245,432 $ - |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | November 30, 2015 November 30, 2014 Salaries, wages, and commissions $ 564,098 $ 673,934 Accrued warranty expense 179,531 234,266 Other 536,284 676,128 $ 1,279,913 $ 1,584,328 |
Note 8 - Product Warranty (Tabl
Note 8 - Product Warranty (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | November 30, 2015 November 30, 2014 Balance, beginning $ 234,265 $ 220,719 Settlements / adjustments (329,672 ) (421,787 ) Warranties issued 274,938 435,333 Balance, ending $ 179,531 $ 234,265 |
Note 9 - Loan and Credit Agre34
Note 9 - Loan and Credit Agreements (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | November 30, 2015 November 30, 2014 U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 $ 1,196,088 $ 1,662,311 U.S. Bank loan payable in monthly installments of $11,000 including interest at 2.98%, due May 1, 2018 743,149 850,930 U.S. Bank loan payable in monthly installments of $12,550 including interest at 2.98%, due May 1, 2018 842,769 965,889 U.S. Bank loan payable in monthly installments of $27,800 including interest at 2.98%, due May 1, 2018 1,112,205 1,407,366 U.S. Bank loan payable in monthly installments of $11,700 including interest at 3.15%, due May 10, 2017 464,605 588,101 U.S. Bank loan payable in monthly installments of $5,556 including interest at 2.98%, due May 25, 2017 943,381 980,940 Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 647,132 777,689 Total term debt $ 5,949,329 $ 7,233,226 Less current portion of term debt 1,322,662 1,283,897 Term debt, excluding current portion $ 4,626,667 $ 5,949,329 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year: Amount 2016 $ 1,322,662 2017 2,433,938 2018 1,947,128 2019 145,585 2020 110,016 2021 and thereafter - $ 5,959,329 |
Note 12 - Equity Incentive Pl35
Note 12 - Equity Incentive Plan (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2015 2014 Expected Volatility 30.55 % 32.28% Expected Dividend Yield 1.574 % 1.236% - 1.277% Expected Term (in years) 2 2 Risk-Free Rate 3.25 % 3.25% |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options Outstanding at beginning of period 160,000 $ 8.72 - - Granted 14,000 $ 4.70 - - Exercised - $ - - - Options Expired or Forfeited - $ - - - Options Outstanding at end of Period 174,000 $ 8.39 4.68 - Options Exercisable at end of Period 169,000 $ 8.47 4.57 - Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options Outstanding at beginning of period 143,000 $ 9.00 - - Granted 19,000 $ 6.10 - - Exercised (2,000 ) $ 3.88 - $ 4,020 Options Expired or Forfeited - $ - - - Options Outstanding at end of Period 160,000 $ 8.72 5.14 $ 15,400 Options Exercisable at end of Period 155,000 $ 8.81 5.27 $ 15,400 |
Schedule of Nonvested Share Activity [Table Text Block] | Non-vested Option Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at beginning of period 5,000 Granted 14,000 $ 0.84 Vested (14,000 ) $ 0.84 Forfeited - $ 0.00 Non-vested at end of period 5,000 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | November 30, 2015 November 30, 2014 Current Expense (benefit) $ (126,301 ) $ 307,452 Deferred expense (benefit) (180,919 ) 59,806 $ (307,220 ) $ 367,258 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | November 30, 2015 November 30, 2014 Statutory federal income tax rate 34.0 % 34.0 % R&D tax credits - (2.0 ) Permanent Differences and Other 1.5 (3.8 ) 35.5 % 28.2 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | November 30 2015 2014 Current deferred tax assets (liabilities): Accrued expenses $ 126,000 $ 147,000 Inventory capitalization 21,000 22,000 Asset reserves 999,000 1,091,000 Total current deferred tax assets $ 1,146,000 $ 1,260,000 Non-current deferrred tax assets Property, plant, and equipment $ (847,000 ) $ (1,142,000 ) Total non-current deferred tax assets (liabilities) $ (847,000 ) $ (1,142,000 ) |
Note 16 - Segment Information (
Note 16 - Segment Information (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Twelve Months Ended November 30, 2015 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 20,756,000 $ 1,610,000 $ 3,191,000 $ 2,379,000 $ 27,936,000 Gross Profit 5,310,000 72,000 970,000 632,000 $ 6,984,000 Operating Expense 5,394,000 399,000 820,000 775,000 $ 7,388,000 Income (loss) from operations (84,000 ) (327,000 ) 150,000 (143,000 ) $ (404,000 ) Income (loss) before tax (438,000 ) (354,000 ) 124,000 (197,000 ) $ (865,000 ) Total Assets 22,696,000 2,565,000 3,181,000 2,890,000 $ 31,332,000 Capital expenditures 219,000 54,000 9,000 11,000 $ 293,000 Depreciation & Amortization 585,000 107,000 125,000 119,000 $ 936,000 Twelve Months Ended November 30, 2014 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 27,952,000 $ 1,736,000 $ 2,965,000 $ 3,517,000 $ 36,170,000 Gross Profit 7,150,000 39,000 626,000 910,000 $ 8,725,000 Operating Expense 5,051,000 351,000 768,000 890,000 $ 7,060,000 Income (loss) from operations 2,099,000 (312,000 ) (142,000 ) 20,000 $ 1,665,000 Income (loss) before tax 1,842,000 (341,000 ) (165,000 ) (33,000 ) $ 1,303,000 Total Assets 24,585,000 2,548,000 2,503,000 3,210,000 $ 32,846,000 Capital expenditures 581,000 27,000 - 25,000 $ 633,000 Depreciation & Amortization 537,000 108,000 146,000 116,000 $ 907,000 |
Note 1 - Summary of Significa38
Note 1 - Summary of Significant Account Policies (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Maximum [Member] | ||
Concentration Risk, Percentage | 5.00% | 7.00% |
Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Assets Leased to Others [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Goodwill, Impairment Loss | $ 618,729 | $ 0 |
Overdue Trade Receivables Interest Rate Percent of Account Balances Per Month | 1.50% | |
Sales Revenue, Goods, Gross | $ 634,000 | 628,000 |
Research and Development Expense | 162,000 | 191,000 |
Advertising Expense | $ 488,000 | $ 511,000 |
Note 1 - Basic and Diluted Earn
Note 1 - Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Basic: | ||
Numerator: net income (loss) | $ (557,842) | $ 935,247 |
Denominator: average number of common shares outstanding (in shares) | 4,058,382 | 4,047,796 |
Basic earnings per common share (in dollars per share) | $ (0.14) | $ 0.23 |
Diluted: | ||
Numerator: net income (loss) | $ (557,842) | $ 935,247 |
Average number of common shares outstanding (in shares) | 4,058,382 | 4,047,796 |
Effect of dilutive stock options (in shares) | 4,907 | |
Denominator: dilutive average number of common shares outstanding (in shares) | 4,058,382 | 4,052,703 |
Diluted earnings per common share (in dollars per share) | $ (0.14) | $ 0.23 |
Note 2 - Activity in the Allowa
Note 2 - Activity in the Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Balance, beginning | $ 35,175 | $ 35,474 |
Bad debt expense (recovery) | (4,605) | 4,539 |
Less amounts charged-off | (11,778) | (4,838) |
Balance, ending | $ 18,810 | $ 35,175 |
Note 3 - Inventories - Major Cl
Note 3 - Inventories - Major Classes of Inventory (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Raw materials | $ 10,058,894 | $ 10,037,055 |
Work in process | 458,526 | 467,110 |
Finished goods | 8,204,843 | 8,504,062 |
Inventory, gross | 18,722,263 | 19,008,227 |
Less: Reserves | (3,023,179) | (3,918,947) |
Inventory, net | $ 15,699,084 | $ 15,089,280 |
Note 4 - Contracts in Progres42
Note 4 - Contracts in Progress (Details Textual) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Contract Receivable Retainage | $ 27,951 | $ 8,048 |
Note 4 - Contracts in Progres43
Note 4 - Contracts in Progress - Long-term Contracts (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Cost and Profit In Excess of Billings [Member] | ||
Costs | $ 233,544 | $ 14,724 |
Estimated earnings | 75,822 | 4,819 |
309,366 | 19,543 | |
Less: amounts billed | (102,694) | (2,000) |
206,672 | 17,543 | |
Billings in Excess of Cost and Profit [Member] | ||
Costs | 695,915 | 623,670 |
Estimated earnings | 227,442 | 204,114 |
923,357 | 827,784 | |
Less: amounts billed | (1,010,215) | (924,166) |
$ (86,858) | $ (96,382) |
Note 5 - Property, Plant, and44
Note 5 - Property, Plant, and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Depreciation | $ 929,180 | $ 906,702 |
Note 5 - Major Classes of Prope
Note 5 - Major Classes of Property, Plant, and Equipment (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Land [Member] | ||
Property, plant and equipment, gross | $ 802,453 | $ 1,188,155 |
Building and Building Improvements [Member] | ||
Property, plant and equipment, gross | 9,496,997 | 10,542,327 |
Construction in Progress [Member] | ||
Property, plant and equipment, gross | 10,353 | 107,807 |
Manufacturing Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 12,523,294 | 14,097,934 |
Trucks and Automobiles [Member] | ||
Property, plant and equipment, gross | 440,306 | 433,962 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 117,554 | 149,022 |
Property, plant and equipment, gross | 23,390,957 | 26,519,207 |
Less accumulated depreciation | (13,696,044) | (14,838,415) |
Property, plant and equipment | $ 9,694,913 | $ 11,680,792 |
Note 6 - Assets Available for46
Note 6 - Assets Available for Sale (Details Textual) - USD ($) | 1 Months Ended | |
Dec. 31, 2015 | Nov. 30, 2015 | |
Ames, Iowa Production Facility [Member] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 1,192,000 | |
Monona, Iowa Storage Facility [Member] | Subsequent Event [Member] | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 8,046 |
Note 6 - Major Components Asset
Note 6 - Major Components Assets Available for Sale (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Ames, Iowa Production Facility [Member] | ||
Assets available for sale | $ 1,093,632 | |
Monona, Iowa Storage Facility [Member] | ||
Assets available for sale | 36,942 | |
Ames, Iowa Powder Coat Print System [Member] | ||
Assets available for sale | 114,858 | |
Assets available for sale | $ 1,245,432 |
Note 7 - Major Components Of Ac
Note 7 - Major Components Of Accrued Expenses (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Salaries, wages, and commissions | $ 564,098 | $ 673,934 |
Accrued warranty expense | 179,531 | 234,266 |
Other | 536,284 | 676,128 |
Accrued expenses | $ 1,279,913 | $ 1,584,328 |
Note 8 - Product Warranty (Deta
Note 8 - Product Warranty (Details Textual) | 12 Months Ended |
Nov. 30, 2015 | |
Standard Product Warrant Term | 1 year |
Note 8 - Changes In Product War
Note 8 - Changes In Product Warranty Liability (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Balance, beginning | $ 234,265 | $ 220,719 |
Settlements / adjustments | (329,672) | (421,787) |
Warranties issued | 274,938 | 435,333 |
Balance, ending | $ 179,531 | $ 234,265 |
Note 9 - Loan and Credit Agre51
Note 9 - Loan and Credit Agreements (Details Textual) | Jul. 16, 2015USD ($) | Nov. 30, 2015USD ($) | Nov. 30, 2014USD ($) | May. 29, 2014USD ($) | May. 01, 2013USD ($) | Feb. 01, 2013 | May. 10, 2012USD ($) | May. 01, 2010USD ($) |
US Bank New Loans [Member] | ||||||||
Debt Instrument, Face Amount | $ 6,319,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.98% | |||||||
Debt Instrument, Periodic Payment | $ 93,850 | |||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 1,372,000 | |||||||
Debt Instrument Covenant Debt to Tangible Net Worth Ratio | 1.5 | |||||||
Debt Instrument Covenant Fixed Charge Coverage Ratio | 1.15 | |||||||
Debt Instrument Covenant Interest Rate Increase in Event of Default | 5.00% | |||||||
US Bank [Member] | ||||||||
Debt Instrument, Face Amount | $ 1,000,000 | $ 880,000 | ||||||
Term Loan Final Payment | $ 890,000 | $ 283,500 | ||||||
Debt Instrument Covenant Interest Rate Increase in Event of Default | 5.00% | |||||||
The 2015 Line of Credit [Member] | US Bank [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.50% | |||||||
Line of Credit Facility, Interest Rate at Period End | 3.50% | |||||||
Long-term Line of Credit | $ 0 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,500,000 | |||||||
The 2015 Line of Credit [Member] | ||||||||
Debt Instrument Covenant Interest Rate Increase in Event of Default | 10.00% | |||||||
Iowa Finance Authority [Member] | ||||||||
Debt Instrument, Face Amount | $ 1,300,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | 3.75% | 2.75% | 3.50% | ||||
Debt Instrument, Periodic Payment | $ 12,500 | $ 12,500 | ||||||
Debt Instrument Covenant Debt Service Coverage Ratio | 1.5 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.50% | |||||||
Line of Credit Facility, Interest Rate at Period End | 3.50% | |||||||
Long-term Line of Credit | $ 3,959,656 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 3,026,677 | |||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Percentage of Accounts Receivable | 75.00% | |||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Minimum Percentage of Aggregate Receivables | 20.00% | |||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Percentage of Inventory | 50.00% | |||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Maximum Inventory Amount | $ 6,000,000 |
Note 9 - Summary Of Term Debt (
Note 9 - Summary Of Term Debt (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
US Bank Loan 1 [Member] | ||
Term debt | $ 1,196,088 | $ 1,662,311 |
US Bank Loan 2 [Member] | ||
Term debt | 743,149 | 850,930 |
US Bank Loan 3 [Member] | ||
Term debt | 842,769 | 965,889 |
US Bank Loan 4 [Member] | ||
Term debt | 1,112,205 | 1,407,366 |
US Bank Loan 5 [Member] | ||
Term debt | 464,605 | 588,101 |
US Bank Loan 6 [Member] | ||
Term debt | 943,381 | 980,940 |
Iowa Finance Authority [Member] | ||
Term debt | 647,132 | 777,689 |
Term debt | 5,949,329 | 7,233,226 |
Less current portion of term debt | 1,322,662 | 1,283,897 |
Term debt, excluding current portion | $ 4,626,667 | $ 5,949,329 |
Note 9 - Summary Of Term Debt53
Note 9 - Summary Of Term Debt (Details) (Parentheticals) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
US Bank Loan 1 [Member] | ||
Debt Instrument, Periodic Payment | $ 42,500 | $ 42,500 |
Debt Instrument, Interest Rate, Stated Percentage | 2.98% | 2.98% |
US Bank Loan 2 [Member] | ||
Debt Instrument, Periodic Payment | $ 11,000 | $ 11,000 |
Debt Instrument, Interest Rate, Stated Percentage | 2.98% | 2.98% |
US Bank Loan 3 [Member] | ||
Debt Instrument, Periodic Payment | $ 12,550 | $ 12,550 |
Debt Instrument, Interest Rate, Stated Percentage | 2.98% | 2.98% |
US Bank Loan 4 [Member] | ||
Debt Instrument, Periodic Payment | $ 27,800 | $ 27,800 |
Debt Instrument, Interest Rate, Stated Percentage | 2.98% | 2.98% |
US Bank Loan 5 [Member] | ||
Debt Instrument, Periodic Payment | $ 11,700 | $ 11,700 |
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | 3.15% |
US Bank Loan 6 [Member] | ||
Debt Instrument, Periodic Payment | $ 5,556 | $ 5,556 |
Debt Instrument, Interest Rate, Stated Percentage | 2.98% | 2.98% |
Iowa Finance Authority [Member] | ||
Debt Instrument, Periodic Payment | $ 12,500 | $ 12,500 |
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | 3.75% |
Note 9 - Summary of the Minimum
Note 9 - Summary of the Minimum Maturities of Term Debt (Details) | Nov. 30, 2015USD ($) |
2,016 | $ 1,322,662 |
2,017 | 2,433,938 |
2,018 | 1,947,128 |
2,019 | 145,585 |
2,020 | $ 110,016 |
2021 and thereafter | |
Total | $ 5,949,329 |
Note 10 - Related Party Trans55
Note 10 - Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Revenue from Related Parties | $ 32,000 | $ 59,000 |
Due from Related Parties | $ 9,600 | $ 0 |
Note 11 - Employee Benefit Pl56
Note 11 - Employee Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | |
Defined Contribution Plan Minimum Threshold Percentage of Employee Contributions | 4.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1.00% | |
Defined Contribution Plan, Cost Recognized | $ 47,466 | $ 54,544 |
Note 12 - Equity Incentive Pl57
Note 12 - Equity Incentive Plan (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Non Qualified Options to Each Director Annually or Upon Election [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000 | |
Employee Stock Option [Member] | ||
Allocated Share-based Compensation Expense | $ 8,022 | $ 11,264 |
Restricted Stock [Member] | ||
Allocated Share-based Compensation Expense | $ 20,462 | $ 3,240 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 12,500 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 4,150 | 500 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | $ 0 |
Allocated Share-based Compensation Expense | 28,484 | 14,504 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 20,462 | $ 10,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.84 | $ 1.17 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 3,881 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 0 | $ 0 |
Proceeds from Stock Options Exercised | $ 0 | $ 7,760 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 14,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 14,000 |
Note 12 - Fair Value Assumption
Note 12 - Fair Value Assumptions (Details) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Minimum [Member] | ||
Expected Dividend Yield | 1.236% | |
Maximum [Member] | ||
Expected Dividend Yield | 1.277% | |
Expected Volatility | 30.55% | 32.28% |
Expected Dividend Yield | 1.574% | |
Expected Term (in years) | 2 years | 2 years |
Risk-Free Rate | 3.25% | 3.25% |
Note 12 - Option Activity (Deta
Note 12 - Option Activity (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Options Outstanding at beginning of period (in shares) | 160,000 | 143,000 |
Options Outstanding at beginning of period (in dollars per share) | $ 8.72 | $ 9 |
Granted (in shares) | 14,000 | 19,000 |
Granted (in dollars per share) | $ 4.70 | $ 6.10 |
Options Outstanding at end of Period (in shares) | 174,000 | 160,000 |
Options Outstanding at end of Period (in dollars per share) | $ 8.39 | $ 8.72 |
Options Outstanding at end of Period | 4 years 248 days | 5 years 51 days |
Options Exercisable at end of Period (in shares) | 169,000 | 155,000 |
Options Exercisable at end of Period (in dollars per share) | $ 8.47 | $ 8.81 |
Options Exercisable at end of Period | 4 years 208 days | 5 years 98 days |
Exercised (in shares) | (2,000) | |
Exercised (in dollars per share) | $ 3.88 | |
Exercised | $ 4,020 | |
Options Outstanding at end of Period | 4 years 248 days | 5 years 51 days |
Options Outstanding at end of Period | $ 15,400 | |
Options Exercisable at end of Period | $ 15,400 |
Note 12 - Summary of the Status
Note 12 - Summary of the Status of the Company's Non-vested Shares (Details) | 12 Months Ended |
Nov. 30, 2015$ / sharesshares | |
Non-vested at beginning of period (in shares) | 5,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 14,000 |
Granted (in dollars per share) | $ / shares | $ 0.84 |
Vested (in shares) | (14,000) |
Vested (in dollars per share) | $ / shares | $ 0.84 |
Forfeited (in dollars per share) | $ / shares | $ 0 |
Non-vested at end of period (in shares) | 5,000 |
Note 13 - Income Tax Expense (B
Note 13 - Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Current Expense (benefit) | $ (126,301) | $ 307,452 |
Deferred expense (benefit) | (180,919) | 59,806 |
Total | $ (307,220) | $ 367,258 |
Note 13 - Reconciliation of the
Note 13 - Reconciliation of the Statutory Federal Income Tax Rate (Details) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Statutory federal income tax rate | 34.00% | 34.00% |
R&D tax credits | (2.00%) | |
Permanent Differences and Other | 1.50% | (3.80%) |
Total | 35.50% | 28.20% |
Note 13 - Deferred Tax Assets a
Note 13 - Deferred Tax Assets and Liabilities (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Accrued expenses | $ 126,000 | $ 147,000 |
Inventory capitalization | 21,000 | 22,000 |
Asset reserves | 999,000 | 1,091,000 |
Total current deferred tax assets | 1,146,242 | 1,259,943 |
Property, plant, and equipment | (847,000) | (1,142,000) |
Total non-current deferred tax assets (liabilities) | $ (846,960) | $ (1,141,580) |
Note 16 - Segment Information64
Note 16 - Segment Information (Details Textual) | 12 Months Ended |
Nov. 30, 2015 | |
Number of Reportable Segments | 4 |
Note 16 - Segment Reporting Inf
Note 16 - Segment Reporting Information (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Operating Segments [Member] | Agricultural Products [Member] | ||
Revenue from external customers | $ 20,756,000 | $ 27,952,000 |
Gross Profit | 5,310,000 | 7,150,000 |
Operating Expense | 5,394,000 | 5,051,000 |
Income (loss) from operations | (84,000) | 2,099,000 |
Income (loss) before tax | (438,000) | 1,842,000 |
Total Assets | 22,696,000 | 24,585,000 |
Capital expenditures | 219,000 | 581,000 |
Depreciation & Amortization | 585,000 | 537,000 |
Operating Segments [Member] | Pressurized Vessels [Member] | ||
Revenue from external customers | 1,610,000 | 1,736,000 |
Gross Profit | 72,000 | 39,000 |
Operating Expense | 399,000 | 351,000 |
Income (loss) from operations | (327,000) | (312,000) |
Income (loss) before tax | (354,000) | (341,000) |
Total Assets | 2,565,000 | 2,548,000 |
Capital expenditures | 54,000 | 27,000 |
Depreciation & Amortization | 107,000 | 108,000 |
Operating Segments [Member] | Modular Buildings [Member] | ||
Revenue from external customers | 3,191,000 | 2,965,000 |
Gross Profit | 970,000 | 626,000 |
Operating Expense | 820,000 | 768,000 |
Income (loss) from operations | 150,000 | (142,000) |
Income (loss) before tax | 124,000 | (165,000) |
Total Assets | 3,181,000 | $ 2,503,000 |
Capital expenditures | 9,000 | |
Depreciation & Amortization | 125,000 | $ 146,000 |
Operating Segments [Member] | Tools [Member] | ||
Revenue from external customers | 2,379,000 | 3,517,000 |
Gross Profit | 632,000 | 910,000 |
Operating Expense | 775,000 | 890,000 |
Income (loss) from operations | (143,000) | 20,000 |
Income (loss) before tax | (197,000) | (33,000) |
Total Assets | 2,890,000 | 3,210,000 |
Capital expenditures | 11,000 | 25,000 |
Depreciation & Amortization | 119,000 | 116,000 |
Operating Segments [Member] | ||
Revenue from external customers | 27,936,000 | 36,170,000 |
Gross Profit | 6,984,000 | 8,725,000 |
Operating Expense | 7,388,000 | 7,060,000 |
Income (loss) from operations | (404,000) | 1,665,000 |
Income (loss) before tax | (865,000) | 1,303,000 |
Total Assets | 31,332,000 | 32,846,000 |
Capital expenditures | 293,000 | 633,000 |
Depreciation & Amortization | 936,000 | 907,000 |
Revenue from external customers | 27,935,791 | 36,169,811 |
Gross Profit | 6,983,682 | 8,724,569 |
Operating Expense | 7,387,345 | 7,059,731 |
Income (loss) from operations | (403,663) | 1,664,838 |
Income (loss) before tax | (865,062) | 1,302,505 |
Total Assets | 31,331,608 | 32,846,342 |
Capital expenditures | $ 292,543 | $ 633,078 |