Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Feb. 28, 2022 | Apr. 04, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000007623 | |
Entity Registrant Name | ARTS WAY MANUFACTURING CO INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-05131 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-0920725 | |
Entity Address, Address Line One | 5556 Highway 9 | |
Entity Address, City or Town | Armstrong | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50514 | |
City Area Code | 712 | |
Local Phone Number | 864-3131 | |
Title of 12(b) Security | Common stock $.01 par value | |
Trading Symbol | ARTW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,630,097 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Current assets: | ||
Cash | $ 3,461 | $ 2,658 |
Accounts receivable-customers, net of allowance for doubtful accounts of $26,748 and $38,188 at February 28, 2022 and November 30, 2021, respectively | 1,582,564 | 2,663,030 |
Inventories, net | 9,700,315 | 9,210,103 |
Cost and profit in excess of billings | 145,640 | 177,284 |
Other current assets | 627,464 | 121,170 |
Total current assets | 12,059,444 | 12,174,245 |
Property, plant, and equipment, net | 5,261,388 | 5,237,328 |
Assets held for lease, net | 521,555 | 521,555 |
Deferred income taxes | 2,730,925 | 2,621,886 |
Other assets | 278,411 | 299,034 |
Total assets | 20,851,723 | 20,854,048 |
Current liabilities: | ||
Accounts payable | 1,553,729 | 1,737,091 |
Customer deposits | 1,894,785 | 278,509 |
Billings in excess of cost and profit | 368,514 | 280,761 |
Income taxes payable | 5,000 | 5,500 |
Accrued expenses | 1,018,558 | 1,210,964 |
Line of credit | 3,150,530 | 4,074,530 |
Current portion of long-term debt | 102,739 | 99,462 |
Total current liabilities | 8,093,855 | 7,686,817 |
Long-term liabilities | ||
Long-term portion of finance lease liabilities | 129,864 | 142,386 |
Long-term portion of operating lease liabilities | 31,612 | 34,931 |
Long-term debt, excluding current portion | 2,613,375 | 2,635,467 |
Total liabilities | 10,868,706 | 10,499,601 |
Commitments and Contingencies (Notes 8, 9, 10 and 13) | ||
Stockholders’ equity: | ||
Undesignated preferred stock - $0.01 par value. Authorized 500,000 shares at February 28, 2022 and November 30, 2021; issued and outstanding 0 shares at February 28, 2022 and November 30,2021. | 0 | 0 |
Common stock – $0.01 par value. Authorized 9,500,000 shares at February 28, 2022 and November 30, 2021; issued 4,674,671 at February 28, 2022 and 4,583,504 at November 30, 2021 | 46,747 | 45,835 |
Additional paid-in capital | 3,829,701 | 3,760,649 |
Retained earnings | 6,249,998 | 6,656,487 |
Treasury stock, at cost (54,938 shares at February 28, 2022 and 44,532 shares at November 30, 2021) | (143,429) | (108,524) |
Total stockholders’ equity | 9,983,017 | 10,354,447 |
Total liabilities and stockholders’ equity | $ 20,851,723 | $ 20,854,048 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Allowance for doubtful accounts | $ 26,748 | $ 38,188 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 9,500,000 | 9,500,000 |
Common stock, issued (in shares) | 4,674,671 | 4,583,504 |
Treasury stock (in shares) | 54,938 | 44,532 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Sales | $ 5,613,066 | $ 5,400,572 |
Cost of goods sold | 4,420,922 | 4,357,894 |
Gross profit | 1,192,144 | 1,042,678 |
Expenses: | ||
Engineering | 134,071 | 121,391 |
Selling | 487,156 | 472,974 |
General and administrative | 1,007,793 | 816,836 |
Total expenses | 1,629,020 | 1,411,201 |
Income (Loss) from operations | (436,876) | (368,523) |
Other income (expense): | ||
Interest expense | (76,704) | (58,684) |
Other | (1,552) | 27,657 |
Total other income (expense) | (78,256) | (31,027) |
Income (Loss) before income taxes | (515,132) | (399,550) |
Income tax expense (benefit) | (108,643) | (84,312) |
Net Income (Loss) | $ (406,489) | $ (315,238) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Nov. 30, 2020 | 4,470,004 | 35,097 | |||
Balance at Nov. 30, 2020 | $ 44,700 | $ 3,496,243 | $ 6,443,856 | $ (78,054) | $ 9,906,745 |
Stock based compensation (in shares) | 93,500 | 5,570 | |||
Stock based compensation | $ 935 | 61,119 | 0 | $ (18,296) | 43,758 |
Net (loss) | $ 0 | 0 | (315,238) | $ 0 | (315,238) |
Balance (in shares) at Feb. 28, 2021 | 4,563,504 | 40,667 | |||
Balance at Feb. 28, 2021 | $ 45,635 | 3,557,362 | 6,128,618 | $ (96,350) | 9,635,265 |
Balance (in shares) at Nov. 30, 2021 | 4,583,504 | 44,532 | |||
Balance at Nov. 30, 2021 | $ 45,835 | 3,760,649 | 6,656,487 | $ (108,524) | 10,354,447 |
Stock based compensation (in shares) | 91,167 | 10,406 | |||
Stock based compensation | $ 912 | 69,052 | 0 | $ (34,905) | 35,059 |
Net (loss) | $ 0 | 0 | (406,489) | $ 0 | (406,489) |
Balance (in shares) at Feb. 28, 2022 | 4,674,671 | 54,938 | |||
Balance at Feb. 28, 2022 | $ 46,747 | $ 3,829,701 | $ 6,249,998 | $ (143,429) | $ 9,983,017 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Cash flows from operations: | ||
Net income (loss) | $ (406,489) | $ (315,238) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Stock based compensation | 69,964 | 62,054 |
Increase (Decrease) in obsolete inventory reserves | (140,485) | (216,795) |
Gain on disposal of property, plant, and equipment | 0 | (8,000) |
Depreciation and amortization expense | 167,542 | 161,107 |
Accrued interest on deferred debt payments | 4,213 | 4,161 |
Increase (decrease) in allowance for doubtful accounts | (11,440) | 25,201 |
Deferred income taxes | (109,039) | (97,413) |
Changes in assets and liabilities: | ||
Accounts receivable | 1,091,906 | 684,378 |
Inventories | (349,727) | 76,951 |
Net investment in sales-type leases | 0 | 14,069 |
Other assets | (506,294) | (225,977) |
Accounts payable | (183,362) | (187,110) |
Contracts in progress, net | 119,397 | (397,920) |
Customer deposits | 1,616,276 | 1,179,196 |
Income taxes payable | (500) | 3,900 |
Accrued expenses | (193,146) | (81,262) |
Net cash provided by operating activities | 1,168,816 | 681,302 |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (174,133) | (163,927) |
Net proceeds from sale of assets | 0 | 8,000 |
Net cash used in investing activities | (174,133) | (155,927) |
Cash flows from financing activities: | ||
Net change in line of credit | 924,000 | 484,000 |
Principal payments on finance lease obligations | (11,946) | 0 |
Repayment of term debt | (23,029) | (21,873) |
Repurchases of common stock | (34,905) | (18,296) |
Net cash used in financing activities | (993,880) | (524,169) |
Net decrease in cash | 803 | 1,206 |
Cash at beginning of period | 2,658 | 2,684 |
Cash at end of period | 3,461 | 3,890 |
Supplemental disclosures of cash flow information: | ||
Interest | 69,754 | 48,826 |
Income taxes | $ 0 | $ 0 |
Note 1 - Description of the Com
Note 1 - Description of the Company | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1 Description of the Company Unless otherwise specified, as used in this Quarterly Report on Form 10 The Company began operations as a farm equipment manufacturer in 1956. The Company has organized its business into three operating segments. Management separately evaluates the financial results of each segment because each is a strategic business unit offering different products and requiring different technology and marketing strategies. The Agricultural Products segment manufactures and sells farm equipment and related replacement parts under the Art’s-Way Manufacturing label and private labels. The Modular Buildings segment manufactures and installs modular buildings for animal containment and various laboratory uses, and the Tools segment manufactures steel cutting tools and inserts. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2 Summary of Significant Accounting Policies Statement Presentation The foregoing condensed consolidated financial statements of the Company are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and operating results for the interim periods. The financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10 November 30, 2021. three February 28, 2022 not November 30, 2022. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the three February 28, 2022. Recently Issued Accounting Pronouncements Accounting Pronouncements Not Measurement of Credit Losses on Financial Instruments In June 2016, 2016 13, 2016 13 2016 13 December 15, 2022, December 15, 2018, 2016 13 2024. not |
Note 3 - Disaggregation of Reve
Note 3 - Disaggregation of Revenue | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3 Disaggregation of Revenue The following table displays revenue by reportable segment from external customers, disaggregated by major source. The Company believes disaggregating by these categories depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended February 28, 2022 Agricultural Modular Buildings Tools Total Farm equipment $ 3,515,000 $ - $ - $ 3,515,000 Farm equipment service parts 558,000 - - 558,000 Steel cutting tools and inserts - - 574,000 574,000 Modular buildings - 851,000 - 851,000 Modular building lease income - - - - Other 88,000 17,000 10,000 115,000 $ 4,161,000 $ 868,000 $ 584,000 $ 5,613,000 Three Months Ended February 28, 2021 Agricultural Modular Buildings Tools Total Farm equipment $ 2,777,000 $ - $ - $ 2,777,000 Farm equipment service parts 620,000 - - 620,000 Steel cutting tools and inserts - - 606,000 606,000 Modular buildings - 1,141,000 - 1,141,000 Modular building lease income - - - - Other 103,000 150,000 4,000 257,000 $ 3,500,000 $ 1,291,000 $ 610,000 $ 5,401,000 |
Note 4 - Contract Receivables,
Note 4 - Contract Receivables, Contract Assets and Contract Liabilities | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Contract Receivable, Contract Assets, and Contract Liabilities [Text Block] | 4 Contract Receivables, Contract Assets and Contract Liabilities The following table provides information about contract receivables, contract assets, and contract liabilities from contracts with customers included on the Condensed Consolidated Balance Sheets. February 28, 2022 November 30, 2021 Receivables $ 1,583,000 $ 2,663,000 Assets 146,000 177,000 Liabilities 2,263,000 559,000 The amount of revenue recognized in the first three 2022 November 30, 2021 2021. February 28, 2022 first 2022. three February 28, 2022 The Company utilizes the practical expedient exception for these contracts and will report only on performance obligations greater than one February 28, 2022, one |
Note 5 - Net Income (Loss) Per
Note 5 - Net Income (Loss) Per Share of Common Stock | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5 Net Income (Loss) Per Share of Common Stock Basic net income (loss) per share of common stock 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. Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted net income (loss) per share. Basic and diluted net income (loss) per share have been computed based on the following as of February 28, 2022 February 28, 2021: For the Three Months Ended February 28, 2022 February 28, 2021 Numerator for basic and diluted net income (loss) per share: Net income (loss) $ (406,489 ) $ (315,238 ) Denominator: For basic net income (loss) per share - weighted average common shares outstanding 4,569,720 4,475,279 Effect of dilutive stock options - - For diluted net income (loss) per share - weighted average common shares outstanding 4,569,720 4,475,279 Net Income (Loss) per share - Basic: Net Income (Loss) per share $ (0.09 ) $ (0.07 ) Net Income (Loss) per share - Diluted: Net Income (Loss) per share $ (0.09 ) $ (0.07 ) |
Note 6 - Inventory
Note 6 - Inventory | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6 Inventory Major classes of inventory are: February 28, 2022 November 30, 2021 Raw materials $ 8,418,441 $ 8,289,386 Work in process 545,922 357,721 Finished goods 2,934,401 3,088,739 Total Gross Inventory $ 11,898,764 $ 11,735,846 Less: Reserves (2,198,449 ) (2,525,743 ) Net Inventory $ 9,700,315 $ 9,210,103 |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7 Accrued Expenses Major components of accrued expenses are: February 28, 2022 November 30, 2021 Salaries, wages, and commissions $ 622,984 $ 654,757 Accrued warranty expense 115,062 202,850 Other 280,512 353,357 $ 1,018,558 $ 1,210,964 |
Note 8 - Assets Held for Lease
Note 8 - Assets Held for Lease | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Disclosure of Assets Available for Sale, Not Part of Discontinued Operations [Text Block] | 8 Assets Held for Lease Major components of assets held for lease are: February 28, 2022 November 30, 2021 Modular Buildings $ 521,555 $ 521,555 Total assets held for lease $ 521,555 $ 521,555 There were no rents recognized from assets held for lease included in sales on the Condensed Consolidated Statements of Operations during the three February 28, 2022 February 28, 2021. There were no future minimum lease receipts from assets held for lease as of February 28, 2022. On March 14, 2022 one May 1, 2022. |
Note 9 - Product Warranty
Note 9 - Product Warranty | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 9 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 one no not 606. may no not 7 three February 28, 2022 February 28, 2021 For the Three Months Ended February 28, 2022 February 28, 2021 Balance, beginning $ 202,850 $ 291,453 Settlements / adjustments 21,624 33,506 Warranties issued (109,412 ) (29,378 ) Balance, ending $ 115,062 $ 295,581 |
Note 10 - Loan and Credit Agree
Note 10 - Loan and Credit Agreements | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10 Loan and Credit Agreements The Company maintains one one three Bank Midwest Revolving Line of Credit and Term Loan The Company maintains a credit facility with Bank Midwest consisting of a $5,000,000 revolving line of credit (the “Line of Credit”) used for working capital purposes, and a $2,600,000 term loan due October 1, 2037 ( February 28, 2022, may February 28, 2022, not March 2022. March 28, 2022. March 30, 2023 The Term Loan accrues interest at a rate of 5.00% for the first sixty September 28, 2022. may five 20% The Term Loan is governed by the terms of a Promissory Note, dated September 28, 2017, February 11, 2021, In connection with the Line of Credit, the Company, Art’s-Way Scientific Inc. and Ohio Metal Working Products/Art’s-Way Inc. each entered into a Commercial Security Agreement with Bank Midwest, dated September 28, 2017, first September 28, 2017. To further secure the Line of Credit, the Company granted Bank Midwest a mortgage on its Canton, Ohio property held by Ohio Metal Working Products/Art’s-Way Inc. The Term Loan is secured by a mortgage on the Company’s Armstrong, Iowa and Monona, Iowa properties. Each mortgage is governed by the terms of a separate Mortgage, dated September 28, 2017, September 28, 2017. If the Company or its subsidiaries (as guarantors pursuant to the Commercial Guaranties) commits an event of default with respect to the promissory notes and fails or is unable to cure that default, Bank Midwest may may may Compliance with the following Bank Midwest covenants is measured annually at November 30. 1 three February 28, 2022. March 28, 2022, November 30, 2021. November 30, 2022. The Company also has a minimum working capital requirement of $4,000,000 that is measured monthly. The $4,000,000 working capital level serves as a trigger point for Bank Midwest and the Company to continue discussion of capital raising strategies to support additional capital injection. As of February 28, 2022, not Q2 2022 SBA Economic Injury Disaster Loans On June 18, 2020, June 24, 2020 19 June 18, 2020 third June 24, 2020 $150,000. twenty-four June 18, 2020 June 24, 2020, A summary of the Company’s term debt is as follows: February 28, 2022 November 30, 2021 Bank Midwest loan payable in monthly installments of $ 17,271 5.00 October 1, 2037 $ 2,237,384 $ 2,260,412 U.S. Small Business Administration loan payable in monthly installments of $ 731 3.75 June 18, 2050 159,555 158,168 U.S. Small Business Administration loan payable in monthly installments of $ 731 3.75 June 24, 2050 159,620 158,181 U.S. Small Business Administration loan payable in monthly installments of $ 731 3.75 June 18, 2050 159,555 158,168 Total term debt $ 2,716,114 $ 2,734,929 Less current portion of term debt 102,739 99,462 Term debt, excluding current portion $ 2,613,375 $ 2,635,467 A summary of the minimum maturities of term debt follows for the years ending November 30: Year Amount 2022 $ 101,362 2023 108,284 2024 113,444 2025 119,552 2026 125,630 2027 and thereafter 2,147,842 $ 2,716,114 On March 22, 2022, six first February 28, 2022 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11 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. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12 Related Party Transactions During the three February 28, 2022 February 28, 2021, not three February 28, 2022, three February 28, 2021. February 28, 2022, February 28, 2021. |
Note 13 - Leases
Note 13 - Leases | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Leases [Text Block] | 13 Leases The Company determines if an arrangement is a lease at inception of a contract. The nature of the Company’s leases at this time is shop machinery and office equipment, mainly copiers, with terms of 12 to 60 months. Operating and finance leases are included in other assets as lease right-of-use (“ROU”) assets on the Consolidated Balance Sheets while current lease liabilities are included as accrued expenses. The long-term portions of lease liabilities are shown as long-term liabilities on the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value payments over the lease term. As most of the Company’s leases do not may The Company has copier lease agreements with lease and non-lease components and has elected the practical expedient not not twelve The components of operating leases on the Condensed Consolidated Balance Sheets at February 28, 2022 November 30, 2021 February 28, 2022 November 30, 2021 Operating lease right-of-use assets (in other assets) $ 44,639 47,794 Current portion of operating lease liabilities (in accrued expenses) $ 13,027 12,863 Long-term portion of operating lease liabilities 31,612 34,931 Total operating lease liabilities $ 44,639 47,794 The Company recorded $4,843 of operating lease costs in the three February 28, 2022, three February 28, 2021. Future maturities of operating lease liabilities are as follows: Years Ending November 30, 2022 11,186 2023 12,345 2024 11,162 2025 9,532 2026 4,764 Total lease payments 48,989 Less imputed interest (4,350 ) Total operating lease liabilities 44,639 The components of finance leases on the Consolidated Balance Sheets on February 28, 2022 November 30, 2021 February 28, 2022 November 30, 2021 Finance lease right-of-use assets (net of amortization in other assets) $ 174,526 $ 190,667 Current portion of finance lease liabilities (accrued expenses) $ 49,169 $ 48,591 Long-term portion of finance lease liabilities 129,864 142,386 Total finance lease liabilities $ 179,033 $ 190,977 Future maturities of finance lease liabilities as of November 30, 2022 Year Ending November 30, 2022 $ 42,485 2023 56,646 2024 68,029 2025 14,203 2026 12,619 Total lease payments 193,982 Less imputed interest (14,949 ) Total finance lease liabilities $ 179,033 The weighted average lease term of the Company’s finance leases are 39 months while the weighted average rate of finance leases is 4.77%. The Company incurred $16,142 of amortization expense from ROU assets related to finance leases in the first three February 28, 2022 2021. On March 3, 2022, The Company expects delivery of a Lift King lift truck in April 2022, |
Note 14 - Equity Incentive Plan
Note 14 - Equity Incentive Plan and Stock Based Compensation | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 14 Equity Incentive Plan and Stock Based Compensation On February 25, 2020, 2020 “2020 2020 April 30, 2020. 2020 2011 “2011 2020 2011 2020 February 25, 2020 The 2020 For the Three Months Ended February 28, 2022 February 28, 2021 Shares issued to directors (immediate vesting) 5,000 5,000 Shares issued to directors, employees, and consultants (three-year vesting) 94,500 88,500 Unvested shares forfeit upon termination (8,333 ) - Total shares issued 91,167 93,500 Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period. The Company estimates the fair value of each stock-based option 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. 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. No stock options were granted during the three February 28, 2022 2021. For the Three Months Ended February 28, 2022 February 28, 2021 Stock-based compensation expense 69,964 62,054 Treasury share repurchase expense (34,905 ) (18,296 ) Stock-based compensation expense net of treasury repurchases 35,059 42,758 |
Note 15 - Common Stock Purchase
Note 15 - Common Stock Purchase Agreement | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 15 Common Stock Purchase Agreement On March 29, 2022, one June 30, 2023. Among other limitations, unless otherwise agreed upon by Alumni Capital, each sale of shares will be limited to 50,000 shares and further limited to no five In exchange for Alumni Capital entering into the Purchase Agreement, the Company issued 20,000 shares of Common Stock to Alumni Capital upon execution of the Purchase Agreement (the “Initial Commitment Shares”) and will issue another 20,000 shares in connection with the first 501 1933, 4 2 506 may not The Purchase Agreement provides that the Company will file a registration statement under the Securities Act covering the resale of the shares issued to Alumni Capital. Alumni Capital’s obligation to purchase shares of Common Stock under the Purchase Agreement is conditioned upon, among other things, the registration statement having been declared effective by the Securities and Exchange Commission. |
Note 16 - Disclosures About the
Note 16 - Disclosures About the Fair Value of Financial Instruments | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 16 Disclosures About the Fair Value of Financial Instruments The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties. At February 28, 2022 November 30, 2021, not not |
Note 17 - Segment Information
Note 17 - Segment Information | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 17 Segment Information The Company has three reportable segments: Agricultural Products, Modular Buildings and Tools. The Agricultural Products segment manufactures and sells farm equipment and related replacement parts under the Art’s-Way Manufacturing label. The Modular Buildings segment manufactures and installs modular buildings for various uses, commonly animal containment and research laboratories. 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, exclusive of nonrecurring gains and losses. Approximate financial information with respect to the reportable segments is as follows. Three Months Ended February 28, 2022 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 4,161,000 $ 868,000 $ 584,000 $ 5,613,000 Income (loss) from operations $ (129,000 ) $ (223,000 ) $ (85,000 ) $ (437,000 ) Income (loss) before tax $ (186,000 ) $ (230,000 ) $ (99,000 ) $ (515,000 ) Total Assets $ 15,784,000 $ 2,695,000 $ 2,373,000 $ 20,852,000 Capital expenditures $ 153,000 $ 14,000 $ 7,000 $ 174,000 Depreciation & Amortization $ 101,000 $ 34,000 $ 33,000 $ 168,000 Three Months Ended February 28, 2021 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 3,500,000 $ 1,291,000 $ 610,000 $ 5,401,000 Income (loss) from operations $ (198,000 ) $ (165,000 ) $ (6,000 ) $ (369,000 ) Income (loss) before tax $ (212,000 ) $ (172,000 ) $ (16,000 ) $ (400,000 ) Total Assets $ 12,990,000 $ 3,171,000 $ 2,621,000 $ 18,782,000 Capital expenditures $ 155,000 $ 9,000 $ - $ 164,000 Depreciation & Amortization $ 99,000 $ 29,000 $ 33,000 $ 161,000 *The consolidated total in the tables is a sum of segment figures and may not |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 3 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 18 Subsequent Events Management evaluated all other activity of the Company and concluded that no March 14 th 8, first 10, 13 15 2 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Statement Presentation The foregoing condensed consolidated financial statements of the Company are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and operating results for the interim periods. The financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10 November 30, 2021. three February 28, 2022 not November 30, 2022. |
Use of Estimates, Policy [Policy Text Block] | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the three February 28, 2022. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Accounting Pronouncements Not Measurement of Credit Losses on Financial Instruments In June 2016, 2016 13, 2016 13 2016 13 December 15, 2022, December 15, 2018, 2016 13 2024. not |
Note 3 - Disaggregation of Re_2
Note 3 - Disaggregation of Revenue (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended February 28, 2022 Agricultural Modular Buildings Tools Total Farm equipment $ 3,515,000 $ - $ - $ 3,515,000 Farm equipment service parts 558,000 - - 558,000 Steel cutting tools and inserts - - 574,000 574,000 Modular buildings - 851,000 - 851,000 Modular building lease income - - - - Other 88,000 17,000 10,000 115,000 $ 4,161,000 $ 868,000 $ 584,000 $ 5,613,000 Three Months Ended February 28, 2021 Agricultural Modular Buildings Tools Total Farm equipment $ 2,777,000 $ - $ - $ 2,777,000 Farm equipment service parts 620,000 - - 620,000 Steel cutting tools and inserts - - 606,000 606,000 Modular buildings - 1,141,000 - 1,141,000 Modular building lease income - - - - Other 103,000 150,000 4,000 257,000 $ 3,500,000 $ 1,291,000 $ 610,000 $ 5,401,000 |
Note 4 - Contract Receivables_2
Note 4 - Contract Receivables, Contract Assets and Contract Liabilities (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | February 28, 2022 November 30, 2021 Receivables $ 1,583,000 $ 2,663,000 Assets 146,000 177,000 Liabilities 2,263,000 559,000 |
Note 5 - Net Income (Loss) Pe_2
Note 5 - Net Income (Loss) Per Share of Common Stock (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended February 28, 2022 February 28, 2021 Numerator for basic and diluted net income (loss) per share: Net income (loss) $ (406,489 ) $ (315,238 ) Denominator: For basic net income (loss) per share - weighted average common shares outstanding 4,569,720 4,475,279 Effect of dilutive stock options - - For diluted net income (loss) per share - weighted average common shares outstanding 4,569,720 4,475,279 Net Income (Loss) per share - Basic: Net Income (Loss) per share $ (0.09 ) $ (0.07 ) Net Income (Loss) per share - Diluted: Net Income (Loss) per share $ (0.09 ) $ (0.07 ) |
Note 6 - Inventory (Tables)
Note 6 - Inventory (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | February 28, 2022 November 30, 2021 Raw materials $ 8,418,441 $ 8,289,386 Work in process 545,922 357,721 Finished goods 2,934,401 3,088,739 Total Gross Inventory $ 11,898,764 $ 11,735,846 Less: Reserves (2,198,449 ) (2,525,743 ) Net Inventory $ 9,700,315 $ 9,210,103 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | February 28, 2022 November 30, 2021 Salaries, wages, and commissions $ 622,984 $ 654,757 Accrued warranty expense 115,062 202,850 Other 280,512 353,357 $ 1,018,558 $ 1,210,964 |
Note 8 - Assets Held for Lease
Note 8 - Assets Held for Lease (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Table Text Block] | February 28, 2022 November 30, 2021 Modular Buildings $ 521,555 $ 521,555 Total assets held for lease $ 521,555 $ 521,555 |
Note 9 - Product Warranty (Tabl
Note 9 - Product Warranty (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Three Months Ended February 28, 2022 February 28, 2021 Balance, beginning $ 202,850 $ 291,453 Settlements / adjustments 21,624 33,506 Warranties issued (109,412 ) (29,378 ) Balance, ending $ 115,062 $ 295,581 |
Note 10 - Loan and Credit Agr_2
Note 10 - Loan and Credit Agreements (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | February 28, 2022 November 30, 2021 Bank Midwest loan payable in monthly installments of $ 17,271 5.00 October 1, 2037 $ 2,237,384 $ 2,260,412 U.S. Small Business Administration loan payable in monthly installments of $ 731 3.75 June 18, 2050 159,555 158,168 U.S. Small Business Administration loan payable in monthly installments of $ 731 3.75 June 24, 2050 159,620 158,181 U.S. Small Business Administration loan payable in monthly installments of $ 731 3.75 June 18, 2050 159,555 158,168 Total term debt $ 2,716,114 $ 2,734,929 Less current portion of term debt 102,739 99,462 Term debt, excluding current portion $ 2,613,375 $ 2,635,467 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year Amount 2022 $ 101,362 2023 108,284 2024 113,444 2025 119,552 2026 125,630 2027 and thereafter 2,147,842 $ 2,716,114 |
Note 13 - Leases (Tables)
Note 13 - Leases (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Lessee, Operating Leases, Assets and Liabilities [Table Text Block] | February 28, 2022 November 30, 2021 Operating lease right-of-use assets (in other assets) $ 44,639 47,794 Current portion of operating lease liabilities (in accrued expenses) $ 13,027 12,863 Long-term portion of operating lease liabilities 31,612 34,931 Total operating lease liabilities $ 44,639 47,794 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Years Ending November 30, 2022 11,186 2023 12,345 2024 11,162 2025 9,532 2026 4,764 Total lease payments 48,989 Less imputed interest (4,350 ) Total operating lease liabilities 44,639 |
Lessee, Finance Leases, Assets and Liabilities [Table Text Block] | February 28, 2022 November 30, 2021 Finance lease right-of-use assets (net of amortization in other assets) $ 174,526 $ 190,667 Current portion of finance lease liabilities (accrued expenses) $ 49,169 $ 48,591 Long-term portion of finance lease liabilities 129,864 142,386 Total finance lease liabilities $ 179,033 $ 190,977 |
Finance Lease, Liability, Fiscal Year Maturity [Table Text Block] | Year Ending November 30, 2022 $ 42,485 2023 56,646 2024 68,029 2025 14,203 2026 12,619 Total lease payments 193,982 Less imputed interest (14,949 ) Total finance lease liabilities $ 179,033 |
Note 14 - Equity Incentive Pl_2
Note 14 - Equity Incentive Plan and Stock Based Compensation (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Share-based Payment Arrangement, Activity [Table Text Block] | For the Three Months Ended February 28, 2022 February 28, 2021 Shares issued to directors (immediate vesting) 5,000 5,000 Shares issued to directors, employees, and consultants (three-year vesting) 94,500 88,500 Unvested shares forfeit upon termination (8,333 ) - Total shares issued 91,167 93,500 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | For the Three Months Ended February 28, 2022 February 28, 2021 Stock-based compensation expense 69,964 62,054 Treasury share repurchase expense (34,905 ) (18,296 ) Stock-based compensation expense net of treasury repurchases 35,059 42,758 |
Note 17 - Segment Information (
Note 17 - Segment Information (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended February 28, 2022 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 4,161,000 $ 868,000 $ 584,000 $ 5,613,000 Income (loss) from operations $ (129,000 ) $ (223,000 ) $ (85,000 ) $ (437,000 ) Income (loss) before tax $ (186,000 ) $ (230,000 ) $ (99,000 ) $ (515,000 ) Total Assets $ 15,784,000 $ 2,695,000 $ 2,373,000 $ 20,852,000 Capital expenditures $ 153,000 $ 14,000 $ 7,000 $ 174,000 Depreciation & Amortization $ 101,000 $ 34,000 $ 33,000 $ 168,000 Three Months Ended February 28, 2021 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 3,500,000 $ 1,291,000 $ 610,000 $ 5,401,000 Income (loss) from operations $ (198,000 ) $ (165,000 ) $ (6,000 ) $ (369,000 ) Income (loss) before tax $ (212,000 ) $ (172,000 ) $ (16,000 ) $ (400,000 ) Total Assets $ 12,990,000 $ 3,171,000 $ 2,621,000 $ 18,782,000 Capital expenditures $ 155,000 $ 9,000 $ - $ 164,000 Depreciation & Amortization $ 99,000 $ 29,000 $ 33,000 $ 161,000 |
Note 1 - Description of the C_2
Note 1 - Description of the Company (Details Textual) | 3 Months Ended |
Feb. 28, 2022 | |
Number of Operating Segments | 3 |
Note 3 - Disaggregation of Re_3
Note 3 - Disaggregation of Revenue - Disaggregated Revenue From External Customer (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue | $ 5,613,000 | $ 5,401,000 |
Farm Equipment [Member] | ||
Revenue | 3,515,000 | 2,777,000 |
Farm Equipment Service Parts [Member] | ||
Revenue | 558,000 | 620,000 |
Steel Cutting Tools and Inserts [Member] | ||
Revenue | 574,000 | 606,000 |
Modular Buildings [Member] | ||
Revenue | 851,000 | 1,141,000 |
Modular Buildings Lease Income [Member] | ||
Revenue | 0 | 0 |
Product and Service, Other [Member] | ||
Revenue | 115,000 | 257,000 |
Agricultural Products [Member] | ||
Revenue | 4,161,000 | 3,500,000 |
Agricultural Products [Member] | Farm Equipment [Member] | ||
Revenue | 3,515,000 | 2,777,000 |
Agricultural Products [Member] | Farm Equipment Service Parts [Member] | ||
Revenue | 558,000 | 620,000 |
Agricultural Products [Member] | Steel Cutting Tools and Inserts [Member] | ||
Revenue | 0 | 0 |
Agricultural Products [Member] | Modular Buildings [Member] | ||
Revenue | 0 | 0 |
Agricultural Products [Member] | Modular Buildings Lease Income [Member] | ||
Revenue | 0 | 0 |
Agricultural Products [Member] | Product and Service, Other [Member] | ||
Revenue | 88,000 | 103,000 |
Modular Buildings [Member] | ||
Revenue | 868,000 | 1,291,000 |
Modular Buildings [Member] | Farm Equipment [Member] | ||
Revenue | 0 | 0 |
Modular Buildings [Member] | Farm Equipment Service Parts [Member] | ||
Revenue | 0 | 0 |
Modular Buildings [Member] | Steel Cutting Tools and Inserts [Member] | ||
Revenue | 0 | 0 |
Modular Buildings [Member] | Modular Buildings [Member] | ||
Revenue | 851,000 | 1,141,000 |
Modular Buildings [Member] | Modular Buildings Lease Income [Member] | ||
Revenue | 0 | 0 |
Modular Buildings [Member] | Product and Service, Other [Member] | ||
Revenue | 17,000 | 150,000 |
Tools [Member] | ||
Revenue | 584,000 | 610,000 |
Tools [Member] | Farm Equipment [Member] | ||
Revenue | 0 | 0 |
Tools [Member] | Farm Equipment Service Parts [Member] | ||
Revenue | 0 | 0 |
Tools [Member] | Steel Cutting Tools and Inserts [Member] | ||
Revenue | 574,000 | 606,000 |
Tools [Member] | Modular Buildings [Member] | ||
Revenue | 0 | 0 |
Tools [Member] | Modular Buildings Lease Income [Member] | ||
Revenue | 0 | 0 |
Tools [Member] | Product and Service, Other [Member] | ||
Revenue | $ 10,000 | $ 4,000 |
Note 4 - Contract Receivables_3
Note 4 - Contract Receivables, Contract Assets and Contract Liabilities (Details Textual) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Contract with Customer, Liability, Revenue Recognized During Period | $ 415,000 | $ 265,000 |
Revenue, Remaining Performance Obligation, Amount | $ 0 | |
Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Note 4 - Contract Receivables_4
Note 4 - Contract Receivables, Contract Assets and Contract Liabilities - Contract With Customers (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Receivables | $ 1,583,000 | $ 2,663,000 |
Assets | 146,000 | 177,000 |
Liabilities | $ 2,263,000 | $ 559,000 |
Note 5 - Net Income (Loss) Pe_3
Note 5 - Net Income (Loss) Per Share of Common Stock - Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Numerator for basic and diluted net income (loss) per share: | ||
Net income (loss) | $ (406,489) | $ (315,238) |
Denominator: | ||
For basic net income (loss) per share - weighted average common shares outstanding (in shares) | 4,569,720 | 4,475,279 |
Effect of dilutive stock options (in shares) | 0 | 0 |
For diluted net income (loss) per share - weighted average common shares outstanding (in shares) | 4,569,720 | 4,475,279 |
Net Income (Loss) per share - Basic: | ||
Net Income (Loss) per share (in dollars per share) | $ (0.09) | $ (0.07) |
Net Income (Loss) per share - Diluted: | ||
Net Income (Loss) per share (in dollars per share) | $ (0.09) | $ (0.07) |
Note 6 - Inventory - Major Clas
Note 6 - Inventory - Major Classes of Inventory (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Raw materials | $ 8,418,441 | $ 8,289,386 |
Work in process | 545,922 | 357,721 |
Finished goods | 2,934,401 | 3,088,739 |
Total Gross Inventory | 11,898,764 | 11,735,846 |
Less: Reserves | (2,198,449) | (2,525,743) |
Net Inventory | $ 9,700,315 | $ 9,210,103 |
Note 7 - Accrued Expenses - Maj
Note 7 - Accrued Expenses - Major Components of Accrued Expenses (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Salaries, wages, and commissions | $ 622,984 | $ 654,757 |
Accrued warranty expense | 115,062 | 202,850 |
Other | 280,512 | 353,357 |
Total accrued liabilities, current | $ 1,018,558 | $ 1,210,964 |
Note 8 - Assets Held for Leas_2
Note 8 - Assets Held for Lease (Details Textual) - USD ($) | Mar. 14, 2022 | Feb. 28, 2022 | Feb. 28, 2021 |
Lessor, Operating Lease, Payments to be Received, Total | $ 0 | ||
Subsequent Event [Member] | |||
Operating Lease, Monthly Lease Income | $ 4,175 | ||
Sales [Member] | |||
Operating Lease, Lease Income, Total | $ 0 | $ 0 |
Note 8 - Assets Held for Leas_3
Note 8 - Assets Held for Lease - Summary of Assets Held for Lease (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Assets held for lease | $ 521,555 | $ 521,555 |
Modular Buildings [Member] | ||
Assets held for lease | $ 521,555 | $ 521,555 |
Note 9 - Product Warranty (Deta
Note 9 - Product Warranty (Details Textual) | 3 Months Ended |
Feb. 28, 2022 | |
Standard Product Warrant Term (Year) | 1 year |
Note 9 - Product Warranty - Cha
Note 9 - Product Warranty - Changes in Product Warranty Liability (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Balance, beginning | $ 202,850 | $ 291,453 |
Settlements / adjustments | 21,624 | 33,506 |
Warranties issued | (109,412) | (29,378) |
Balance, ending | $ 115,062 | $ 295,581 |
Note 10 - Loan and Credit Agr_3
Note 10 - Loan and Credit Agreements (Details Textual) | Mar. 28, 2022USD ($) | Mar. 22, 2022 | Jan. 12, 2021USD ($) | Jun. 24, 2020USD ($) | Jun. 18, 2020USD ($) | Sep. 28, 2017USD ($) | Feb. 28, 2022USD ($) | Nov. 30, 2021USD ($) |
Long-term Debt, Total | $ 2,716,114 | $ 2,734,929 | ||||||
Term Loan Due October 2037 [Member] | ||||||||
Long-term Debt, Total | $ 2,237,384 | $ 2,260,412 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||||||
Debt Instrument, Periodic Payment, Total | $ 17,271 | $ 17,271 | ||||||
EIDL Assistance Program, Loan One [Member] | ||||||||
Proceeds from Issuance of Debt | $ 150,000 | |||||||
EIDL Assistance Program, Loan Three [Member] | ||||||||
Proceeds from Issuance of Debt | $ 150,000 | |||||||
Economic Injury Distaster Loan Assistance Program [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |||||||
Debt Instrument, Term (Year) | 30 years | |||||||
Economic Injury Distaster Loan Assistance Program [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument, Payment, Extension Term (Month) | 6 months | |||||||
EIDL Assistance Program, Loan Two [Member] | ||||||||
Debt Instrument, Periodic Payment, Total | $ 731 | |||||||
Bank Midwest [Member] | ||||||||
Long-term Line of Credit, Total | 3,150,530 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,849,470 | |||||||
Line of Credit, Borrowing Base, Accounts Receivable | 75.00% | |||||||
Line of Credit, Borrowing Base, Inventory | 50.00% | |||||||
Debt Instrument, Covenant, Maximum Debt to Worth Ratio | 1 | |||||||
Debt Instrument, Covenant, Minimum Tangible Balance Sheet Equity, Percentage | 40.00% | |||||||
Debt Instrument, Covenant, Minimum Debt Service Coverage Ratio | 1.25 | |||||||
Debt Instrument, Covenant, Minimum Debt Service Coverage Ratio, Tolerance | 0.10 | |||||||
Bank Midwest [Member] | Minimum [Member] | ||||||||
Debt Instrument, Covenant, Annual Purchases or Sales Price of Equipment Before Requiring Bank Approval | $ 100,000 | |||||||
Debt Instrument, Covenant, Annual Purchases or Sales Price of Equipment | $ 100,000 | |||||||
Bank Midwest [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument, Covenant, Annual Purchases or Sales Price of Equipment | $ 50,000 | |||||||
Debt Instrument, Cancelled Covenant, Annual Purchases or Sales Price of Equipment Before Requiring Bank Approval | 100,000 | |||||||
Bank Midwest [Member] | Maximum [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument, Covenant, Annual Purchases or Sales Price of Equipment | $ 50,000 | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | ||||||||
Long-term Debt, Total | 2,600,000 | |||||||
Debt Instrument, Periodic Payment, Total | 17,271 | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | United States Department of Agriculture [Member] | ||||||||
Upfront Guarantee Fee | $ 62,400 | |||||||
Guarantee Fee, Annual Fee, Percentage | 0.50% | |||||||
Guarantee Requirement, Personally Guarantee, Shareholders Ownership Percentage | 20.00% | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | J. Ward McConnell Jr. [Member] | ||||||||
Personally Guaranteed, Percentage of Loan | 38.00% | |||||||
Personally Guaranteed, Fee, Percentage of Guaranteed Amount | 2.00% | |||||||
Bank Midwest [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||||||
Line of Credit Facility, Wall Street Journal Rate Floor | 4.25% | |||||||
Line of Credit Facility, Interest Rate During Period | 5.00% | |||||||
Bank Midwest [Member] | Revolving Credit Facility [Member] | Wall Street Journal Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | Minimum [Member] | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.15% | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | Wall Street Journal Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||
Bank Midwest, New Amended Covenant [Member] | ||||||||
Debt Instrument, Covenant, Minimum Working Capital | $ 4,000,000 | |||||||
Debt Instrument, Working Capital Covenant, Out of Compliance, Amount | $ 34,000 |
Note 10 - Loan and Credit Agr_4
Note 10 - Loan and Credit Agreements - Summary of Term Debt (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Long-term Debt, Total | $ 2,716,114 | $ 2,734,929 |
Less current portion of term debt | 102,739 | 99,462 |
Term debt, excluding current portion | 2,613,375 | 2,635,467 |
Term Loan Due October 2037 [Member] | ||
Long-term Debt, Total | 2,237,384 | 2,260,412 |
SBA Loan One [Member] | ||
Long-term Debt, Total | 159,555 | 158,168 |
SBA Loan Two [Member] | ||
Long-term Debt, Total | 159,620 | 158,181 |
SBA Loan Three [Member] | ||
Long-term Debt, Total | $ 159,555 | $ 158,168 |
Note 10 - Loan and Credit Agr_5
Note 10 - Loan and Credit Agreements - Summary of Term Debt (Details) (Parentheticals) - USD ($) | 3 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Nov. 30, 2021 | |
Term Loan Due October 2037 [Member] | ||
Debt Instrument, Periodic Payment, Total | $ 17,271 | $ 17,271 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% |
Debt instrument, maturity date | Oct. 1, 2037 | Oct. 1, 2037 |
SBA Loan One [Member] | ||
Debt Instrument, Periodic Payment, Total | $ 731 | $ 731 |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% |
Debt instrument, maturity date | Jun. 18, 2050 | Jun. 18, 2050 |
SBA Loan Two [Member] | ||
Debt Instrument, Periodic Payment, Total | $ 731 | $ 731 |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% |
Debt instrument, maturity date | Jun. 24, 2050 | Jun. 24, 2050 |
SBA Loan Three [Member] | ||
Debt Instrument, Periodic Payment, Total | $ 731 | $ 731 |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% |
Debt instrument, maturity date | Jun. 18, 2050 | Jun. 18, 2050 |
Note 10 - Loan and Credit Agr_6
Note 10 - Loan and Credit Agreements - Summary of Minimum Maturities of Term Debt (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
2022 | $ 101,362 | |
2023 | 108,284 | |
2024 | 113,444 | |
2025 | 119,552 | |
2026 | 125,630 | |
2027 and thereafter | 2,147,842 | |
Long-term Debt, Total | $ 2,716,114 | $ 2,734,929 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue from Related Parties | $ 0 | $ 0 |
Due from Related Parties, Total | 0 | 0 |
Related Party Transaction, Expenses from Transactions with Related Party | 9,349 | 4,669 |
Due to Related Parties, Total | $ 1,299 | $ 1,353 |
J. Ward McConnell Jr. [Member] | ||
Related Party, Ownership Percentage | 20.00% |
Note 13 - Leases (Details Textu
Note 13 - Leases (Details Textual) | 3 Months Ended | |||
Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($) | Apr. 14, 2022USD ($) | Mar. 03, 2022USD ($) | |
Lease, Cost, Total | $ 4,843 | $ 6,080 | ||
Operating Lease, Weighted Average Remaining Lease Term (Month) | 46 months | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4.88% | |||
Lessee, Finance Lease, Term of Contract (Month) | 39 months | |||
Finance Lease, Weighted Average Discount Rate, Percent | 4.77% | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 16,142 | $ 0 | ||
Robotic Weld Systems [Member] | Subsequent Event [Member] | ||||
Lessee, Finance Lease, Not yet Commenced, Right-of-Use Assets, Number of Units | 3 | |||
Lessee, Finance Lease, Not yet Commenced, Monthly Payment, Amount | $ 5,068 | |||
Lessee, Finance Lease, Lease Not yet Commenced, Term of Contract (Month) | 60 months | |||
Lessee, Finance Lease, Not yet Commenced, Bargain Purchased Option, Amount | $ 30,590 | |||
Lift King Lift Truck [Member] | Subsequent Event [Member] | ||||
Lessee, Finance Lease, Not yet Commenced, Monthly Payment, Amount | $ 1,627 | |||
Lessee, Finance Lease, Lease Not yet Commenced, Term of Contract (Month) | 60 months | |||
Lessee, Finance Lease, Not yet Commenced, Bargain Purchased Option, Amount | $ 1 | |||
Minimum [Member] | ||||
Lessee, Operating Lease, Term of Contract (Month) | 12 months | |||
Maximum [Member] | ||||
Lessee, Operating Lease, Term of Contract (Month) | 60 months |
Note 13 - Leases - Components o
Note 13 - Leases - Components of Operating Leases (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Operating lease right-of-use assets (in other assets) | $ 44,639 | $ 47,794 |
Current portion of operating lease liabilities (in accrued expenses) | 13,027 | 12,863 |
Long-term portion of operating lease liabilities | 31,612 | 34,931 |
Total operating lease liabilities | $ 44,639 | $ 47,794 |
Note 13 - Leases - Maturities o
Note 13 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
2022 | $ 11,186 | |
2023 | 12,345 | |
2024 | 11,162 | |
2025 | 9,532 | |
2026 | 4,764 | |
Total lease payments | 48,989 | |
Less imputed interest | (4,350) | |
Total operating lease liabilities | $ 44,639 | $ 47,794 |
Note 13 - Leases - Components_2
Note 13 - Leases - Components of Finance Leases (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
Finance lease right-of-use assets (net of amortization in other assets) | $ 174,526 | $ 190,667 |
Current portion of finance lease liabilities (accrued expenses) | 49,169 | 48,591 |
Long-term portion of finance lease liabilities | 129,864 | 142,386 |
Total finance lease liabilities | $ 179,033 | $ 190,977 |
Note 13 - Leases - Maturities_2
Note 13 - Leases - Maturities of Finance Lease Liabilities (Details) - USD ($) | Feb. 28, 2022 | Nov. 30, 2021 |
2022 | $ 42,485 | |
2023 | 56,646 | |
2024 | 68,029 | |
2025 | 14,203 | |
2026 | 12,619 | |
Total lease payments | 193,982 | |
Less imputed interest | (14,949) | |
Total finance lease liabilities | $ 179,033 | $ 190,977 |
Note 14 - Equity Incentive Pl_3
Note 14 - Equity Incentive Plan and Stock Based Compensation (Details Textual) - shares | Feb. 25, 2020 | Feb. 28, 2022 | Feb. 28, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares) | 0 | 0 | |
Non-qualified Stock Units to Non-employee Directors Annually or Upon Election [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,000 | ||
Non-qualified Stock Units to Non-employee Directors, Quarterly [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 1,000 | ||
The 2020 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 500,000 |
Note 14 - Equity Incentive Pl_4
Note 14 - Equity Incentive Plan and Stock Based Compensation - Summary of Shares Issued (Details) - shares | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Shares issued (in shares) | 91,167 | 93,500 |
Unvested shares forfeit upon termination (in shares) | (8,333) | 0 |
Director [Member] | Vesting Immediately [Member] | ||
Shares issued (in shares) | 5,000 | 5,000 |
Employees, Directors, and Consultants [Member] | Awards with Three-year Vesting [Member] | ||
Shares issued (in shares) | 94,500 | 88,500 |
Note 14 - Equity Incentive Pl_5
Note 14 - Equity Incentive Plan and Stock Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Stock-based compensation expense | $ 69,964 | $ 62,054 |
Treasury share repurchase expense | (34,905) | (18,296) |
Stock-based compensation expense net of treasury repurchases | $ 35,059 | $ 42,758 |
Note 15 - Common Stock Purcha_2
Note 15 - Common Stock Purchase Agreement (Details Textual) - USD ($) | Mar. 29, 2022 | Feb. 28, 2022 | Nov. 30, 2021 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | |
Alumni Capital [Member] | Subsequent Event [Member] | |||
Common Stock Purchase Agreement, Maximum Gross Proceeds from Issuance or Sale of Equity | $ 3,000,000 | ||
Common Stock Purchase Agreement, Maximum Shares Authorized to be Issued (in shares) | 50,000 | ||
Common Stock Purchase Agreement, Percentage of Common Shares Outstanding | 9.99% | ||
Stock Issued During Period, Shares, New Issues (in shares) | 20,000 | ||
Common Stock Purchase Agreement, Shares to be Issued (in shares) | 20,000 | ||
Alumni Capital [Member] | Subsequent Event [Member] | Minimum [Member] | |||
Common Stock Purchase Agreement, Discount on Shares, Percent | 3.00% | ||
Alumni Capital [Member] | Subsequent Event [Member] | Maximum [Member] | |||
Common Stock Purchase Agreement, Discount on Shares, Percent | 5.00% |
Note 17 - Segment Information_2
Note 17 - Segment Information (Details Textual) | 3 Months Ended |
Feb. 28, 2022 | |
Number of Reportable Segments | 3 |
Note 17 - Segment Information -
Note 17 - Segment Information - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | |
Revenue from external customers | $ 5,613,066 | $ 5,400,572 | |
Income (loss) from operations | (436,876) | (368,523) | |
Total Assets | 20,851,723 | $ 20,854,048 | |
Capital expenditures | 174,133 | 163,927 | |
Depreciation & Amortization | 167,542 | 161,107 | |
Operating Segments [Member] | |||
Revenue from external customers | 5,613,000 | 5,401,000 | |
Income (loss) from operations | (437,000) | (369,000) | |
Income (loss) before tax | (515,000) | (400,000) | |
Total Assets | 20,852,000 | 18,782,000 | |
Capital expenditures | 174,000 | 164,000 | |
Depreciation & Amortization | 168,000 | 161,000 | |
Operating Segments [Member] | Agricultural Products [Member] | |||
Revenue from external customers | 4,161,000 | 3,500,000 | |
Income (loss) from operations | (129,000) | (198,000) | |
Income (loss) before tax | (186,000) | (212,000) | |
Total Assets | 15,784,000 | 12,990,000 | |
Capital expenditures | 153,000 | 155,000 | |
Depreciation & Amortization | 101,000 | 99,000 | |
Operating Segments [Member] | Modular Buildings [Member] | |||
Revenue from external customers | 868,000 | 1,291,000 | |
Income (loss) from operations | (223,000) | (165,000) | |
Income (loss) before tax | (230,000) | (172,000) | |
Total Assets | 2,695,000 | 3,171,000 | |
Capital expenditures | 14,000 | 9,000 | |
Depreciation & Amortization | 34,000 | 29,000 | |
Operating Segments [Member] | Tools [Member] | |||
Revenue from external customers | 584,000 | 610,000 | |
Income (loss) from operations | (85,000) | (6,000) | |
Income (loss) before tax | (99,000) | (16,000) | |
Total Assets | 2,373,000 | 2,621,000 | |
Capital expenditures | 7,000 | 0 | |
Depreciation & Amortization | $ 33,000 | $ 33,000 |