Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Feb. 28, 2018 | Apr. 13, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | Jewett Cameron Trading Co LTD. | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2018 | |
Amendment Flag | false | |
Entity Central Index Key | 885,307 | |
Current Fiscal Year End Date | --08-31 | |
Entity Common Stock, Shares Outstanding | 2,234,494 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State Country Name | British Columbia | |
Entity Incorporation, Date of Incorporation | Jul. 8, 1987 | |
Trading Symbol | jctcf |
JEWETT-CAMERON TRADING COMPANY
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Prepared by Management) (Unaudited) - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 | |
Current assets | |||
Cash | $ 2,790,723 | $ 5,912,250 | |
Accounts receivable, net of allowance of $Nil (August 31, 2017 - $1,725) | 6,064,903 | 3,565,055 | |
Inventory, net of allowance of $139,704 (August 31, 2017 - $156,713) | [1] | 9,289,193 | 8,807,545 |
Prepaid expenses | 883,204 | 595,776 | |
Prepaid income taxes | 469,577 | ||
Total current assets | 19,497,600 | 18,880,626 | |
Property, plant and equipment, net | [2] | 3,139,156 | 3,222,572 |
Intangible assets, net | [3] | 3,862 | 77,837 |
Total assets | 22,640,618 | 22,181,035 | |
Current liabilities | |||
Accounts payable | 782,869 | 638,128 | |
Accrued liabilities | 1,265,612 | 1,807,192 | |
Total current liabilities | 2,048,481 | 2,445,320 | |
Deferred tax liability | [4] | 37,035 | 11,344 |
Total liabilities | 2,085,516 | 2,456,664 | |
Stockholders' equity | |||
Authorized 21,567,564 common shares, without par value 10,000,000 preferred shares, without par value Issued 2,234,494 common shares (August 31, 2017 - 2,234,494) | [5] | 1,054,316 | 1,054,316 |
Additional paid-in capital | 600,804 | 600,804 | |
Retained earnings | 18,899,982 | 18,069,251 | |
Total stockholders' equity | 20,555,102 | 19,724,371 | |
Total liabilities and stockholders' equity | $ 22,640,618 | $ 22,181,035 | |
[1] | Note 3 | ||
[2] | Note 4 | ||
[3] | Note 5 | ||
[4] | Note 6 | ||
[5] | Notes 8, 9 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 |
Statement of financial position | ||
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 21,567,564 | 21,567,564 |
Common Stock, Shares Issued | 2,234,494 | 2,234,494 |
Common Stock, Shares Outstanding | 2,234,494 | 2,234,494 |
Accounts Receivable allowance | $ 0 | $ 1,725 |
Inventory allowance | $ 139,704 | $ 156,713 |
JEWETT-CAMERON TRADING COMPANY4
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Prepared by Management) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Income statement | ||||
SALES | $ 13,341,338 | $ 9,499,286 | $ 22,755,308 | $ 19,921,089 |
COST OF SALES | 10,705,532 | 7,370,224 | 17,932,754 | 15,397,585 |
GROSS PROFIT | 2,635,806 | 2,129,062 | 4,822,554 | 4,523,504 |
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 616,074 | 453,668 | 1,061,951 | 1,004,717 |
Depreciation and amortization | 122,745 | 69,368 | 195,410 | 138,007 |
Wages and employee benefits | 1,176,743 | 1,057,792 | 2,274,647 | 2,040,041 |
Total operating expenses | 1,915,562 | 1,580,828 | 3,532,008 | 3,182,765 |
Income from operations | 720,244 | 548,234 | 1,290,546 | 1,340,739 |
OTHER ITEMS | ||||
(Loss) gain on sale of property, plant and equipment | 530 | (393) | (27,022) | (393) |
Interest and other income | 5,793 | 2,000 | 8,483 | 3,820 |
Total other items | 6,323 | 1,607 | (18,539) | 3,427 |
Income before income taxes | 726,567 | 549,841 | 1,272,007 | 1,344,166 |
Income tax expense | (218,269) | (240,828) | (441,276) | (549,233) |
Net income | $ 508,298 | $ 309,013 | $ 830,731 | $ 794,933 |
Basic earnings per common share | $ 0.23 | $ 0.14 | $ 0.37 | $ 0.35 |
Diluted earnings per common share | $ 0.23 | $ 0.14 | $ 0.37 | $ 0.35 |
Weighted average number of common shares outstanding: | ||||
Basic | 2,234,494 | 2,286,294 | 2,234,494 | 2,286,294 |
Diluted | 2,234,494 | 2,286,294 | 2,234,494 | 2,286,294 |
JEWETT-CAMERON TRADING COMPANY5
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Prepared by Management) (Unaudited) - USD ($) | Number of Shares | Amount | Additional paid in capital | Retained earnings | Total | ||
Beginning balance at Aug. 31, 2016 | $ 1,078,759 | $ 600,804 | $ 15,845,092 | $ 17,524,655 | |||
Shares outstanding at Aug. 31, 2016 | 2,286,294 | ||||||
Shares repurchased and cancelled, value | [1] | (24,443) | (502,498) | $ (526,941) | |||
Shares repurchased and cancelled, shares | (51,800) | [1] | 41,800 | ||||
Net income | 2,726,657 | $ 2,726,657 | |||||
Ending balance at Aug. 31, 2017 | 1,054,316 | 600,804 | 18,069,251 | 19,724,371 | |||
Shares outstanding at Aug. 31, 2017 | 2,234,494 | ||||||
Net income | 830,731 | 830,731 | |||||
Ending balance at Feb. 28, 2018 | $ 1,054,316 | $ 600,804 | $ 18,899,982 | $ 20,555,102 | |||
Shares outstanding at Feb. 28, 2018 | 2,234,494 | ||||||
[1] | Note 9 |
JEWETT-CAMERON TRADING COMPANY6
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Prepared by Management) (Unaudited) - USD ($) | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 830,731 | $ 794,933 |
Items not involving an outlay of cash: | ||
Depreciation and amortization | 195,410 | 138,007 |
Loss on sale of property, plant and equipment | 27,022 | 393 |
Deferred income taxes | 25,691 | 4,540 |
Changes in non-cash working capital items: | ||
(Increase) in accounts receivable | (2,499,848) | (1,205,537) |
(Increase) in inventory | (481,648) | (817,226) |
(Increase) decrease in prepaid expenses | (287,428) | 25,202 |
(Increase) in prepaid income taxes | (469,577) | (148,891) |
(Decrease) in accounts payable and accrued liabilities | (396,839) | (961,277) |
Net cash used in operating activities | (3,056,486) | (2,169,856) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (66,041) | (335,014) |
Proceeds from sale of property, plant and equipment | 1,000 | 3,480 |
Net cash used in investing activities | (65,041) | (331,534) |
Net decrease in cash | (3,121,527) | (2,501,390) |
Cash, beginning of period | 5,912,250 | 4,519,922 |
Cash, end of period | $ 2,790,723 | $ 2,018,532 |
1. Nature of Operations
1. Nature of Operations | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
1. Nature of Operations | 1. NATURE OF OPERATIONS Jewett-Cameron Trading Company Ltd. was incorporated in British Columbia on July 8, 1987 as a holding company for Jewett-Cameron Lumber Corporation (JCLC), incorporated September 1953. Jewett-Cameron Trading Company, Ltd. acquired all the shares of JCLC through a stock-for-stock exchange on July 13, 1987, and at that time JCLC became a wholly owned subsidiary. Effective September 1, 2013, the Company reorganized certain of its subsidiaries. JCLCs name was changed to JC USA Inc. (JC USA), and a new subsidiary, Jewett-Cameron Company (JCC), was incorporated. JC USA has the following wholly owned subsidiaries: MSI-PRO Co. (MSI), incorporated April 1996, Jewett-Cameron Seed Company, (JCSC), incorporated October 2000, Greenwood Products, Inc. (Greenwood), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Jewett-Cameron Trading Company Ltd. and its subsidiaries (the Company) have no significant assets in Canada. The Company, through its subsidiaries, operates out of facilities located in North Plains, Oregon. JCCs business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI is an importer and distributor of pneumatic air tools and industrial clamps in the United States. JCSC is a processor and distributor of agricultural seeds in the United States. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies. These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of February 28, 2018 and August 31, 2017 and its results of operations and cash flows for the three and six month periods ended February 28, 2018 and 2017 in accordance with generally accepted accounting principles of the United States of America |
2. Significant Accounting Polic
2. Significant Accounting Policies | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
2. Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Generally accepted accounting principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A. All inter-company balances and transactions have been eliminated upon consolidation. Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated into the Companys consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. At February 28, 2018, cash was $ 2,790,723 compared to $ at August 31, 2017. At February 28, 2018 and August 31, 2017, there were no cash equivalents. Accounts receivable Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers. The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue. The Company extends credit to domestic customers and offers discounts for early payment. When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit. Inventory Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market. Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods: Minimum Maximum Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 Intangibles The Companys intangible assets have a finite life and are recorded at cost. Amortization is calculated using the straight-line method over the remaining life of the asset. The intangible assets are reviewed annually for impairment. Asset retirement obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Company does not have any significant asset retirement obligations. Impairment of long-lived assets and long-lived assets to be disposed of Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. Currency and foreign exchange These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States. The Company does not have significant non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar. Any statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. Earnings per share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares. The earnings per share data for the three and six month periods ended February 28, 2018 and 2017 are as follows: Three Month Periods ended February 28, Six Month Periods ended February 28, 2018 2017 2018 2017 Net income $ 508,298 $ 309,013 $ 830,731 $ 794,933 Basic weighted average number of common shares outstanding 2,234,494 2,286,294 2,234,494 2,286,294 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,234,494 2,286,294 2,234,494 2,286,294 Comprehensive income The Company has no items of other comprehensive income in any year presented. Therefore, net income presented in the consolidated statements of operations equals comprehensive income. Stock-based compensation All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. No options were granted during the six month period ended February 28, 2018, and there were no options outstanding on February 28, 2018. Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts. Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability. Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of February 28, 2018 and August 31, 2017 follows: February 28, 2018 August 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Cash $2,790,723 $2,790,723 $5,912,250 $5,912,250 Accounts receivable, net of allowance 6,064,903 6,064,903 3,565,055 3,565,055 Accounts payable and accrued liabilities 2,048,481 2,048,481 2,445,320 2,445,320 The following table presents information about the assets that are measured at fair value on a recurring basis as of February 28, 2018 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: February 28, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 2,790,723 $ 2,790,723 $ $ The fair values of cash are determined through market, observable and corroborated sources. Income taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Shipping and handling costs The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as sales in the consolidated statement of operations. Revenue recognition The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In November 2015, an ASU was issued to simplify the presentation of deferred income taxes. The amendments in this ASU require that deferred tax liabilities and assets be classified as non-current on the balance sheet as compared to the current requirements to separate deferred tax liabilities and assets into current and non-current amounts. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Earlier application is permitted. This ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Companys financial statements on adoption. In February 2016, Topic 842, Leases Leases In July 2015, Topic 330, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method (RIM) are not impacted by the new guidance. The new standard is being issued as part of the simplification initiative. Prior to the issuance of the standard, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). This necessitated obtaining three data points to determine market value. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for preparers. Further, this change will more closely align U.S. GAAP and IFRS. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those years and is to be prospectively applied. The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Companys financial statements on adoption. In November 2016, Topic 230, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, a consensus of the FASBs Emerging Issues Task Force (the Task Force). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. Topic 230 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted this ASU on December 1 2017, prospectively. There was no material impact on the Companys financial statements on adoption. |
3. Inventory
3. Inventory | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
3. Inventory | 3. INVENTORY A summary of inventory is as follows: February 28, 2018 August 31, 2017 Wood products and metal products $ 8,620,418 $ 8,184,921 Industrial tools 427,986 434,871 Agricultural seed products 240,789 187,753 $ 9,289,193 $ 8,807,545 |
4. Property, Plant and Equipmen
4. Property, Plant and Equipment | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
4. Property, Plant and Equipment | 4. PROPERTY, PLANT AND EQUIPMENT A summary of property, plant, and equipment is as follows: February 28, 2018 August 31, 2017 Office equipment $ 458,853 $ 561,090 Warehouse equipment 1,284,075 1,290,838 Buildings 4,090,527 4,097,438 Land 761,924 761,924 6,595,379 6,711,290 Accumulated depreciation (3,456,223) (3,488,718) Net book value $ 3,139,156 $ 3,222,572 In the event that facts and circumstances indicate that the carrying amount of an asset may not be recoverable and an estimate of future discounted cash flows is less than the carrying amount of the asset, an impairment loss will be recognized. Management's estimates of revenues, operating expenses, and operating capital are subject to certain risks and uncertainties which may affect the recoverability of the Company's investments in its assets. Although management has made its best estimate of these factors based on current conditions, it is possible that changes could occur which could adversely affect management's estimate of the net cash flow expected to be generated from its operations. |
5. Intangible Assets
5. Intangible Assets | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
5. Intangible Assets | 5. INTANGIBLE ASSETS A summary of intangible assets is as follows: February 28, 2018 August 31, 2017 Patent $ - $ 850,000 Other 43,655 43,655 43,655 893,655 Accumulated amortization (39,793) (815,818) Net book value $ 3,862 $ 77,837 During the period, the Company conducted a periodic review of the Companys patents and determined that two of the patents had expired. The Company immediately amortized the remaining book value of the patents and derecognized the respective costs and accumulated amortization values. |
6. Deferred Income Taxes
6. Deferred Income Taxes | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
6. Deferred Income Taxes | 6. DEFERRED INCOME TAXES Deferred tax liabilities as of February 28, 2018 of $ 37,035 (August 31, 2017 - $ 11,344 ) reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. |
7. Bank Indebtedness
7. Bank Indebtedness | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
7. Bank Indebtedness | 7. BANK INDEBTEDNESS There was no bank indebtedness under the Companys $ 3,000,000 line of credit as of February 28, 2018 or August 31, 2017. Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. I |
8. Capital Stock
8. Capital Stock | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
8. Capital Stock | 8. CAPITAL STOCK Common Stock Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company's ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. |
9. Cancellation of Capital Stoc
9. Cancellation of Capital Stock | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
9. Cancellation of Capital Stock | 9. Treasury stock may be kept based on an acceptable inventory method such as the average cost basis. Upon disposition or cancellation, the treasury stock account is credited for an amount equal to the number of shares cancelled, multiplied by the cost per share and the difference is treated as additional paid-in-capital in excess of stated value. During the 4 th Donald Boone, Chairman and former President and CEO of the Company, voluntarily returned 10,000 common shares to treasury for cancellation during the fiscal year ended August 31, 2017. The Company paid no consideration for the shares. Capital stock was reduced by the book value of the shares in the amount of $4,719, with a corresponding increase to retained earnings of $4,719. |
10. Stock Options
10. Stock Options | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
10. Stock Options | 10. STOCK OPTIONS The Company has a stock option program under which stock options to purchase securities from the Company can be granted to directors and employees of the Company on terms and conditions acceptable to the regulatory authorities of Canada, notably the Ontario Securities Commission and the British Columbia Securities Commission. Under the stock option program, stock options for up to 10% of the number of issued and outstanding common shares may be granted from time to time, provided that stock options in favor of any one individual may not exceed 5% of the issued and outstanding common shares. No stock option granted under the stock option program is transferable by the optionee other than by will or the laws of descent and distribution, and each stock option is exercisable during the lifetime of the optionee only by such optionee. Generally, no option can be for a term of more than 10 years from the date of the grant. The exercise price of all stock options, granted under the stock option program, must be at least equal to the fair market value (subject to regulated discounts) of such common shares on the date of grant. Options vest at the discretion of the Board of Directors. The Company had no stock options outstanding as of February 28, 2018 and August 31, 2017. |
11. Pension and Profit-sharing
11. Pension and Profit-sharing Plans | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
11. Pension and Profit-sharing Plans | 11. PENSION AND PROFIT-SHARING PLANS The Company has a deferred compensation 401(k) plan for all employees with at least 12 months of service pending a monthly enrollment time. The plan allows for a non-elective discretionary contribution based on the first $45,000 of eligible compensation, which was decreased from the prior $50,000 during the second quarter of fiscal 2018 and from $60,000 of eligible compensation during the second quarter of fiscal 2017. For the six month periods ended February 28, 2018 and 2017, the 401(k) compensation expense was $ 166,369 and $ 160,157 , respectively. |
12. Segment Information
12. Segment Information | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
12. Segment Information | 12. SEGMENT INFORMATION The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered. Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes. The following tables show the operations of the Company's reportable segments. Following is a summary of segmented information as at and for the six month periods ended February 28, 2018 and 2017: 2018 2017 Sales to unaffiliated customers: Industrial wood products $ 1,515,375 $ 1,697,032 Lawn, garden, pet and other 19,323,517 15,585,202 Seed processing and sales 1,393,443 1,638,954 Industrial tools and clamps 522,973 999,901 $ 22,755,308 $ 19,921,089 Income (loss) before income taxes: Industrial wood products $ (47,183) $ (63,876) Lawn, garden, pet and other 849,782 893,787 Seed processing and sales 90,495 84,030 Industrial tools and clamps (3,778) 65,911 Corporate and administrative 382,691 364,314 $ 1,272,007 $ 1,344,166 Identifiable assets: Industrial wood products $ 878,842 $ 912,060 Lawn, garden, pet and other 13,969,856 11,390,537 Seed processing and sales 415,032 505,684 Industrial tools and clamps 498,865 671,308 Corporate and administrative 6,878,023 6,219,299 $ 22,640,618 $ 19,698,888 Depreciation and amortization: Industrial wood products $ 165 $ 165 Lawn, garden, pet and other 29,421 18,275 Seed processing and sales 3,883 6,482 Industrial tools and clamps 657 657 Corporate and administrative 161,284 112,428 $ 195,410 $ 138,007 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - - Industrial tools and clamps - - Corporate and administrative 66,041 335,014 $ 66,041 $ 335,014 Interest expense: $ 3 $ - The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the six months ended February 28, 2018 and 2017: 2018 2017 Sales $ 14,152,519 $ 9,159,127 The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the six months ended February 28, 2018 and 2017: 2018 2017 United States $ 21,679,684 $ 18,635,193 Canada 759,136 866,057 Mexico/Latin America 159,436 362,556 Europe 38,993 12,408 Europe 118,059 44,875 All of the Companys significant identifiable assets were located in the United States as of February 28, 2018 and 2017. |
13. Concentrations
13. Concentrations | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
13. Concentrations | 13. CONCENTRATIONS Credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with a high quality financial institution. The Company has concentrations of credit risk with respect to accounts receivable as large amounts of its accounts receivable are concentrated geographically in the United States amongst a small number of customers. At February 28, 2018, three customers accounted for accounts receivable greater than 10% of total accounts receivable at 71 %. At February 28, 2017, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 52 %. The Company controls credit risk through credit approvals, credit limits, credit insurance and monitoring procedures. The Company performs credit evaluations of its commercial customers but generally does not require collateral to support accounts receivable. Volume of business The Company has concentrations in the volume of purchases it conducts with its suppliers. For the six months ended February 28, 2018, there were three suppliers that each accounted for 10% or greater of total purchases, and the aggregate purchases amounted to $ 11,365,503 . For the six months ended February 28, 2017, there were two suppliers that each accounted for 10% or greater of total purchases, and the aggregate purchases amounted to $ 7,425,603 . |
14. Supplemental Disclosure Wit
14. Supplemental Disclosure With Respect To Cash Flows | 6 Months Ended |
Feb. 28, 2018 | |
Notes | |
14. Supplemental Disclosure With Respect To Cash Flows | 14. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Certain cash payments for the six months ended February 28 are summarized as follows: 2018 2017 Cash paid during the periods for: Interest $ 3 $ - Income taxes $ 924,444 $ 686,485 There were no non-cash investing or financing activities during the periods presented. |
2. Significant Accounting Pol21
2. Significant Accounting Policies: Generally accepted accounting principles (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Generally accepted accounting principles | Generally accepted accounting principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. |
2. Significant Accounting Pol22
2. Significant Accounting Policies: Principles of Consolidation (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Principles of Consolidation | Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A. All inter-company balances and transactions have been eliminated upon consolidation. |
2. Significant Accounting Pol23
2. Significant Accounting Policies: Estimates (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Estimates | Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated into the Companys consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims. Actual results could differ from those estimates. |
2. Significant Accounting Pol24
2. Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. At February 28, 2018, cash was $ 2,790,723 compared to $ at August 31, 2017. At February 28, 2018 and August 31, 2017, there were no cash equivalents. |
2. Significant Accounting Pol25
2. Significant Accounting Policies: Accounts Receivable (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Accounts Receivable | Accounts receivable Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers. The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue. The Company extends credit to domestic customers and offers discounts for early payment. When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit. |
2. Significant Accounting Pol26
2. Significant Accounting Policies: Inventory (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Inventory | Inventory Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market. Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components. |
2. Significant Accounting Pol27
2. Significant Accounting Policies: Property, Plant and Equipment (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods: Minimum Maximum Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 |
2. Significant Accounting Pol28
2. Significant Accounting Policies: Intangibles (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Intangibles | Intangibles The Companys intangible assets have a finite life and are recorded at cost. Amortization is calculated using the straight-line method over the remaining life of the asset. The intangible assets are reviewed annually for impairment. |
2. Significant Accounting Pol29
2. Significant Accounting Policies: Asset Retirement Obligations (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Asset Retirement Obligations | Asset retirement obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Company does not have any significant asset retirement obligations. |
2. Significant Accounting Pol30
2. Significant Accounting Policies: Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of | Impairment of long-lived assets and long-lived assets to be disposed of Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. |
2. Significant Accounting Pol31
2. Significant Accounting Policies: Currency and Foreign Exchange (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Currency and Foreign Exchange | Currency and foreign exchange These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States. The Company does not have significant non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar. Any statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. |
2. Significant Accounting Pol32
2. Significant Accounting Policies: Earnings Per Share (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Earnings Per Share | Earnings per share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares. The earnings per share data for the three and six month periods ended February 28, 2018 and 2017 are as follows: Three Month Periods ended February 28, Six Month Periods ended February 28, 2018 2017 2018 2017 Net income $ 508,298 $ 309,013 $ 830,731 $ 794,933 Basic weighted average number of common shares outstanding 2,234,494 2,286,294 2,234,494 2,286,294 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,234,494 2,286,294 2,234,494 2,286,294 |
2. Significant Accounting Pol33
2. Significant Accounting Policies: Comprehensive Income (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Comprehensive Income | Comprehensive income The Company has no items of other comprehensive income in any year presented. Therefore, net income presented in the consolidated statements of operations equals comprehensive income. |
2. Significant Accounting Pol34
2. Significant Accounting Policies: Stock-based Compensation (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Stock-based Compensation | Stock-based compensation All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. No options were granted during the six month period ended February 28, 2018, and there were no options outstanding on February 28, 2018. |
2. Significant Accounting Pol35
2. Significant Accounting Policies: Financial Instruments (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Financial Instruments | Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts. Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability. Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of February 28, 2018 and August 31, 2017 follows: February 28, 2018 August 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Cash $2,790,723 $2,790,723 $5,912,250 $5,912,250 Accounts receivable, net of allowance 6,064,903 6,064,903 3,565,055 3,565,055 Accounts payable and accrued liabilities 2,048,481 2,048,481 2,445,320 2,445,320 The following table presents information about the assets that are measured at fair value on a recurring basis as of February 28, 2018 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: February 28, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 2,790,723 $ 2,790,723 $ $ The fair values of cash are determined through market, observable and corroborated sources. |
2. Significant Accounting Pol36
2. Significant Accounting Policies: Income taxes (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Income taxes | Income taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
2. Significant Accounting Pol37
2. Significant Accounting Policies: Shipping and Handling Costs (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Shipping and Handling Costs | Shipping and handling costs The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as sales in the consolidated statement of operations. |
2. Significant Accounting Pol38
2. Significant Accounting Policies: Revenue Recognition (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Revenue Recognition | Revenue recognition The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured. |
2. Significant Accounting Pol39
2. Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In November 2015, an ASU was issued to simplify the presentation of deferred income taxes. The amendments in this ASU require that deferred tax liabilities and assets be classified as non-current on the balance sheet as compared to the current requirements to separate deferred tax liabilities and assets into current and non-current amounts. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Earlier application is permitted. This ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Companys financial statements on adoption. In February 2016, Topic 842, Leases Leases In July 2015, Topic 330, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) and the retail inventory method (RIM) are not impacted by the new guidance. The new standard is being issued as part of the simplification initiative. Prior to the issuance of the standard, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). This necessitated obtaining three data points to determine market value. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for preparers. Further, this change will more closely align U.S. GAAP and IFRS. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those years and is to be prospectively applied. The Company adopted this ASU on April 1, 2017, prospectively. There was no material impact on the Companys financial statements on adoption. In November 2016, Topic 230, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, a consensus of the FASBs Emerging Issues Task Force (the Task Force). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. Topic 230 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted this ASU on December 1 2017, prospectively. There was no material impact on the Companys financial statements on adoption. |
2. Significant Accounting Pol40
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Month Periods ended February 28, Six Month Periods ended February 28, 2018 2017 2018 2017 Net income $ 508,298 $ 309,013 $ 830,731 $ 794,933 Basic weighted average number of common shares outstanding 2,234,494 2,286,294 2,234,494 2,286,294 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,234,494 2,286,294 2,234,494 2,286,294 |
2. Significant Accounting Pol41
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Fair Value, Option, Quantitative Disclosures | February 28, 2018 August 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Cash $2,790,723 $2,790,723 $5,912,250 $5,912,250 Accounts receivable, net of allowance 6,064,903 6,064,903 3,565,055 3,565,055 Accounts payable and accrued liabilities 2,048,481 2,048,481 2,445,320 2,445,320 |
2. Significant Accounting Pol42
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | February 28, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 2,790,723 $ 2,790,723 $ $ |
3. Inventory_ Schedule of Inven
3. Inventory: Schedule of Inventory, Current (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Schedule of Inventory, Current | February 28, 2018 August 31, 2017 Wood products and metal products $ 8,620,418 $ 8,184,921 Industrial tools 427,986 434,871 Agricultural seed products 240,789 187,753 $ 9,289,193 $ 8,807,545 |
4. Property, Plant and Equipm44
4. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Property, Plant and Equipment | February 28, 2018 August 31, 2017 Office equipment $ 458,853 $ 561,090 Warehouse equipment 1,284,075 1,290,838 Buildings 4,090,527 4,097,438 Land 761,924 761,924 6,595,379 6,711,290 Accumulated depreciation (3,456,223) (3,488,718) Net book value $ 3,139,156 $ 3,222,572 |
5. Intangible Assets_ Property,
5. Intangible Assets: Property, Plant, and Equipment and Intangible Assets (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Property, Plant, and Equipment and Intangible Assets | February 28, 2018 August 31, 2017 Patent $ - $ 850,000 Other 43,655 43,655 43,655 893,655 Accumulated amortization (39,793) (815,818) Net book value $ 3,862 $ 77,837 |
12. Segment Information_ Schedu
12. Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | 2018 2017 Sales to unaffiliated customers: Industrial wood products $ 1,515,375 $ 1,697,032 Lawn, garden, pet and other 19,323,517 15,585,202 Seed processing and sales 1,393,443 1,638,954 Industrial tools and clamps 522,973 999,901 $ 22,755,308 $ 19,921,089 Income (loss) before income taxes: Industrial wood products $ (47,183) $ (63,876) Lawn, garden, pet and other 849,782 893,787 Seed processing and sales 90,495 84,030 Industrial tools and clamps (3,778) 65,911 Corporate and administrative 382,691 364,314 $ 1,272,007 $ 1,344,166 Identifiable assets: Industrial wood products $ 878,842 $ 912,060 Lawn, garden, pet and other 13,969,856 11,390,537 Seed processing and sales 415,032 505,684 Industrial tools and clamps 498,865 671,308 Corporate and administrative 6,878,023 6,219,299 $ 22,640,618 $ 19,698,888 Depreciation and amortization: Industrial wood products $ 165 $ 165 Lawn, garden, pet and other 29,421 18,275 Seed processing and sales 3,883 6,482 Industrial tools and clamps 657 657 Corporate and administrative 161,284 112,428 $ 195,410 $ 138,007 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - - Industrial tools and clamps - - Corporate and administrative 66,041 335,014 $ 66,041 $ 335,014 Interest expense: $ 3 $ - |
12. Segment Information_ Sche47
12. Segment Information: Schedule of Sales in Excess of Ten Percent (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Schedule of Sales in Excess of Ten Percent | 2018 2017 Sales $ 14,152,519 $ 9,159,127 |
12. Segment Information_ Sche48
12. Segment Information: Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | 2018 2017 United States $ 21,679,684 $ 18,635,193 Canada 759,136 866,057 Mexico/Latin America 159,436 362,556 Europe 38,993 12,408 Europe 118,059 44,875 |
14. Supplemental Disclosure W49
14. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Tables/Schedules | |
Schedule of Cash Flow, Supplemental Disclosures | 2018 2017 Cash paid during the periods for: Interest $ 3 $ - Income taxes $ 924,444 $ 686,485 |
1. Nature of Operations (Detail
1. Nature of Operations (Details) | 6 Months Ended |
Feb. 28, 2018 | |
Details | |
Entity Incorporation, State Country Name | British Columbia |
Entity Incorporation, Date of Incorporation | Jul. 8, 1987 |
2. Significant Accounting Pol51
2. Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 | Aug. 31, 2016 |
Details | ||||
Cash | $ 2,790,723 | $ 5,912,250 | $ 2,018,532 | $ 4,519,922 |
2. Significant Accounting Pol52
2. Significant Accounting Policies: Property, Plant and Equipment (Details) | 6 Months Ended |
Feb. 28, 2018 | |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods: Minimum Maximum Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 |
Minimum | |
Office equipment, expected useful lives in years | 3 |
Warehouse equipment, expected useful lives in years | 2 |
Buildings, expected useful lives in years | 5 |
Maximum | |
Office equipment, expected useful lives in years | 7 |
Warehouse equipment, expected useful lives in years | 10 |
Buildings, expected useful lives in years | 30 |
2. Significant Accounting Pol53
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Details | ||||
Net income | $ 508,298 | $ 309,013 | $ 794,933 | |
Weighted Average Number of Shares Issued, Basic | 2,234,494 | 2,286,294 | 2,286,294 | |
Weighted average number of common shares outstanding: Diluted | 2,234,494 | 2,286,294 | 2,234,494 | 2,286,294 |
2. Significant Accounting Pol54
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Details) - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 | Aug. 31, 2016 |
Details | ||||
Cash | $ 2,790,723 | $ 5,912,250 | $ 2,018,532 | $ 4,519,922 |
Accounts receivable, net of allowance of $Nil (August 31, 2017 - $1,725) | 6,064,903 | 3,565,055 | ||
Accounts Payable and Accrued Liabilities, Current | $ 2,048,481 | $ 2,445,320 |
2. Significant Accounting Pol55
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 | Aug. 31, 2016 |
Details | ||||
Cash | $ 2,790,723 | $ 5,912,250 | $ 2,018,532 | $ 4,519,922 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 2,790,723 |
3. Inventory_ Schedule of Inv56
3. Inventory: Schedule of Inventory, Current (Details) - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 | |
Details | |||
Wood products and metal products | $ 8,620,418 | $ 8,184,921 | |
Industrial tools | 427,986 | 434,871 | |
Agricultural seed products | 240,789 | 187,753 | |
Inventory, net of allowance of $156,713 (August 31, 2016 - $176,717) | [1] | $ 9,289,193 | $ 8,807,545 |
[1] | Note 3 |
4. Property, Plant and Equipm57
4. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 | |
Details | |||
Office equipment | $ 458,853 | $ 561,090 | |
Warehouse equipment | 1,284,075 | 1,290,838 | |
Buildings and Improvements, Gross | 4,090,527 | 4,097,438 | |
Land | 761,924 | 761,924 | |
Property, Plant and Equipment, Gross | 6,595,379 | 6,711,290 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (3,456,223) | (3,488,718) | |
Property, plant and equipment, net | [1] | $ 3,139,156 | $ 3,222,572 |
[1] | Note 4 |
5. Intangible Assets_ Propert58
5. Intangible Assets: Property, Plant, and Equipment and Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Feb. 28, 2018 | Aug. 31, 2017 | |
Details | ||
Finite-Lived Patents, Gross | $ 850,000 | |
Other Finite-Lived Intangible Assets, Gross | $ 43,655 | 43,655 |
Amortization of Intangible Assets | (39,793) | (815,818) |
Intangible Assets, Current | $ 3,862 | $ 77,837 |
6. Deferred Income Taxes (Detai
6. Deferred Income Taxes (Details) - USD ($) | Feb. 28, 2018 | Aug. 31, 2017 |
Details | ||
Deferred Tax Liabilities, Gross | $ 37,035 | $ 11,344 |
7. Bank Indebtedness (Details)
7. Bank Indebtedness (Details) | Feb. 28, 2018USD ($) |
Details | |
Line of Credit Facility, Current Borrowing Capacity | $ 3,000,000 |
9. Cancellation of Capital St61
9. Cancellation of Capital Stock (Details) | 12 Months Ended |
Aug. 31, 2017USD ($)$ / sharesshares | |
Details | |
Shares repurchased and cancelled, shares | shares | 41,800 |
Payments for Repurchase of Common Stock | $ 526,941 |
Average price per share repurchased and cancelled | $ / shares | $ 12.61 |
Shares returned to treasury for cancellation | shares | 10,000 |
Shares returned to treasury for cancellation, value | $ 4,719 |
Shares returned to treasury for cancellation, value, effect on retained earnings | $ 4,719 |
11. Pension and Profit-sharin62
11. Pension and Profit-sharing Plans (Details) - USD ($) | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Details | ||
Payment for Pension Benefits | $ 166,369 | $ 160,157 |
12. Segment Information_ Sche63
12. Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Details | ||||
Schedule of Segment Reporting Information, by Segment | 2018 2017 Sales to unaffiliated customers: Industrial wood products $ 1,515,375 $ 1,697,032 Lawn, garden, pet and other 19,323,517 15,585,202 Seed processing and sales 1,393,443 1,638,954 Industrial tools and clamps 522,973 999,901 $ 22,755,308 $ 19,921,089 Income (loss) before income taxes: Industrial wood products $ (47,183) $ (63,876) Lawn, garden, pet and other 849,782 893,787 Seed processing and sales 90,495 84,030 Industrial tools and clamps (3,778) 65,911 Corporate and administrative 382,691 364,314 $ 1,272,007 $ 1,344,166 Identifiable assets: Industrial wood products $ 878,842 $ 912,060 Lawn, garden, pet and other 13,969,856 11,390,537 Seed processing and sales 415,032 505,684 Industrial tools and clamps 498,865 671,308 Corporate and administrative 6,878,023 6,219,299 $ 22,640,618 $ 19,698,888 Depreciation and amortization: Industrial wood products $ 165 $ 165 Lawn, garden, pet and other 29,421 18,275 Seed processing and sales 3,883 6,482 Industrial tools and clamps 657 657 Corporate and administrative 161,284 112,428 $ 195,410 $ 138,007 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - - Industrial tools and clamps - - Corporate and administrative 66,041 335,014 $ 66,041 $ 335,014 Interest expense: $ 3 $ - | |||
Industrial wood products, sales | $ 1,515,375 | $ 1,697,032 | ||
Lawn, garden, pet and other, sales | 19,323,517 | 15,585,202 | ||
Seed processing and sales, sales | 1,393,443 | 1,638,954 | ||
Industrial tools and clamps, sales | 522,973 | 999,901 | ||
SALES | $ 13,341,338 | $ 9,499,286 | 22,755,308 | 19,921,089 |
Industrial wood products, income before tax | (47,183) | (63,876) | ||
Lawn, garden, pet and other, income before tax | 849,782 | 893,787 | ||
Seed processing and sales, income before tax | 90,495 | 84,030 | ||
Industrial tools and clamps, income before tax | (3,778) | 65,911 | ||
Corporate and administrative income before tax | 382,691 | 364,314 | ||
Income (loss) before income taxes | 1,272,007 | 1,344,166 | ||
Industrial wood products, assets | 878,842 | 912,060 | ||
Lawn, garden, pet and other, assets | 13,969,856 | 11,390,537 | ||
Seed processing and sales, assets | 415,032 | 505,684 | ||
Industrial tools and clamps, assets | 498,865 | 671,308 | ||
Corporate and administrative assets | 6,878,023 | 6,219,299 | ||
Identifiable assets | 22,640,618 | 19,698,888 | ||
Industrial wood products, depreciation and amortization | 165 | 165 | ||
Lawn, garden, pet and other, depreciation and amortization | 29,421 | 18,275 | ||
Seed processing and sales, depreciation and amortization | 3,883 | 6,482 | ||
Industrial tools and clamps, depreciation and amortization | 657 | 657 | ||
Corporate and administrative depreciation and amortization | 161,284 | 112,428 | ||
Depreciation and amortization | $ 122,745 | $ 69,368 | 195,410 | 138,007 |
Corporate and administrative capital expenditures | 66,041 | 335,014 | ||
Capital expenditures | 66,041 | $ 335,014 | ||
Interest Paid | $ 3 |
12. Segment Information_ Sche64
12. Segment Information: Schedule of Sales in Excess of Ten Percent (Details) - USD ($) | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Details | ||
Sales to customers in excess of 10% of total sales | $ 14,152,519 | $ 9,159,127 |
12. Segment Information_ Sche65
12. Segment Information: Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Details | ||
United States sales | $ 21,679,684 | $ 18,635,193 |
Canada sales | 759,136 | 866,057 |
Mexico/Latin America sales | 159,436 | 362,556 |
Europe sales | $ 118,059 | $ 44,875 |
13. Concentrations (Details)
13. Concentrations (Details) - USD ($) | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Details | ||
Concentration Risk, Customer | 71 | 52 |
Concentration, volume of purchases | $ 11,365,503 | $ 7,425,603 |
14. Supplemental Disclosure W67
14. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Details | ||
Interest Paid | $ 3 | |
Income Taxes Paid | $ 924,444 | $ 686,485 |