Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2021 | Jul. 14, 2021 | |
Registrant CIK | 0000885307 | |
Fiscal Year End | --08-31 | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2021 | |
Entity File Number | 000-19954 | |
Entity Registrant Name | JEWETT CAMERON TRADING CO LTD | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 32275 N.W. Hillcrest | |
Entity Address, City or Town | North Plains | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97133 | |
City Area Code | 503 | |
Local Phone Number | 647-0110 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | JCTCF | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,489,161 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
None | ||
Security Exchange Name | NONE | |
A1 | ||
Entity Incorporation, State or Country Code | A1 |
JEWETT-CAMERON TRADING COMPANY
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | May 31, 2021 | Aug. 31, 2020 | |
Current assets | |||
Cash and cash equivalents | $ 2,170,046 | $ 3,801,037 | |
Accounts receivable, net of allowance of $0 (August 31, 2020 - $0) | 11,051,061 | 6,274,426 | |
Inventory, net of allowance of $250,000 (August 31, 2020 - $65,000) (note 3) | [1] | 7,767,640 | 9,198,146 |
Prepaid expenses | 2,580,856 | 1,036,128 | |
Total current assets | 23,569,603 | 20,309,737 | |
Property, plant and equipment, net (note 4) | [2] | 3,799,402 | 2,967,565 |
Intangible assets, net (note 5) | [3] | 12,910 | 659 |
Total assets | 27,381,915 | 23,277,961 | |
Current liabilities | |||
Accounts payable | 1,557,721 | 1,095,061 | |
Bank indebtedness (note 7) | [4] | 996,010 | 0 |
Current portion of notes payable (note 8) | [4] | 0 | 342,326 |
Income taxes payable | 230,190 | 40,596 | |
Accrued liabilities | 2,290,235 | 2,016,300 | |
Total current liabilities | 5,074,156 | 3,494,283 | |
Notes payable (note 8) | [4] | 0 | 338,381 |
Deferred tax liability (note 6) | [5] | 39,184 | 96,952 |
Total liabilities | 5,113,340 | 3,929,616 | |
Stockholders' equity | |||
Capital stock (note 9, 10) Authorized 21,567,564 common shares, no par value 10,000,000 preferred shares, no par value Issued 3,489,161 common shares (August 31, 2020 - 3,481,162) | [6] | 823,171 | 821,284 |
Additional paid-in capital | 687,211 | 618,707 | |
Retained earnings | 20,758,193 | 17,908,354 | |
Total stockholders' equity | 22,268,575 | 19,348,345 | |
Total liabilities and stockholders' equity | $ 27,381,915 | $ 23,277,961 | |
[1] | BS1 | ||
[2] | BS2 | ||
[3] | BS3 | ||
[4] | BS4 | ||
[5] | BS5 | ||
[6] | BS6 |
JEWETT-CAMERON TRADING COMPAN_2
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) - Parenthetical - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Details | ||
Accounts Receivable, Allowance for Credit Loss | $ 0 | $ 0 |
Inventory, Net of Allowances, Customer Advances and Progress Billings | $ 250,000 | $ 65,000 |
Common Stock, Shares Authorized | 21,567,564 | 21,567,564 |
Common Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares, Issued | 3,489,161 | 3,481,162 |
JEWETT-CAMERON TRADING COMPAN_3
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Details | ||||
SALES | $ 21,619,952 | $ 16,241,239 | $ 42,396,591 | $ 30,918,345 |
COST OF SALES | 16,037,702 | 11,931,746 | 31,239,866 | 22,555,253 |
GROSS PROFIT | 5,582,250 | 4,309,493 | 11,156,725 | 8,363,092 |
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 966,299 | 706,079 | 2,556,902 | 2,118,999 |
Depreciation and amortization | 69,353 | 54,781 | 175,171 | 160,992 |
Wages and employee benefits | 1,908,588 | 1,635,051 | 5,226,021 | 4,343,412 |
Operating expenses | 2,944,240 | 2,395,911 | 7,958,094 | 6,623,403 |
Income from operations | 2,638,010 | 1,913,582 | 3,198,631 | 1,739,689 |
OTHER ITEMS | ||||
Gain on sale of property, plant and equipment | 0 | 2,200 | 0 | 2,600 |
Gain on extinguishment of debt | 687,387 | 687,387 | ||
Interest and other income | (6,282) | 3,217 | (283) | 21,414 |
Other income | 681,105 | 5,417 | 687,104 | 24,014 |
Income before income taxes | 3,319,115 | 1,918,999 | 3,885,735 | 1,763,703 |
Income tax expense | (904,638) | (522,026) | (1,035,896) | (547,614) |
Net income | $ 2,414,477 | $ 1,396,973 | $ 2,849,839 | $ 1,216,089 |
Basic earnings per common share | $ 0.69 | $ 0.40 | $ 0.82 | $ 0.33 |
Diluted earnings per common share | $ 0.69 | $ 0.40 | $ 0.82 | $ 0.33 |
Basic | 3,489,161 | 3,481,162 | 3,485,525 | 3,672,858 |
Diluted | 3,489,161 | 3,481,162 | 3,485,525 | 3,672,858 |
JEWETT-CAMERON TRADING COMPAN_4
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Equity Balance at Aug. 31, 2019 | $ 936,903 | $ 618,707 | $ 18,875,256 | $ 20,430,866 |
Equity Balance, shares at Aug. 31, 2019 | 3,971,282 | |||
Shares repurchased and cancelled | $ (115,619) | 0 | (3,751,427) | (3,867,046) |
Shares repurchased and cancelled | (490,120) | |||
Net income | $ 0 | 0 | 1,216,089 | 1,216,089 |
Net income | 0 | 0 | 1,216,089 | 1,216,089 |
Shares issued pursuant to compensation plans (note 11) | 0 | |||
Net income | $ 0 | 0 | 1,216,089 | 1,216,089 |
Equity Balance, shares at May. 31, 2020 | 3,481,162 | |||
Equity Balance at May. 31, 2020 | $ 821,284 | 618,707 | 16,339,918 | 17,779,909 |
Equity Balance at Aug. 31, 2020 | $ 821,284 | 618,707 | 17,908,354 | 19,348,345 |
Equity Balance, shares at Aug. 31, 2020 | 3,481,162 | |||
Net income | $ 0 | 0 | 2,849,839 | 2,849,839 |
Net income | 0 | 0 | 2,849,839 | 2,849,839 |
Shares issued pursuant to compensation plans (note 11) | $ 1,887 | 68,504 | 0 | 70,391 |
Shares issued pursuant to compensation plans (note 11) | 7,999 | |||
Net income | $ 0 | 0 | 2,849,839 | 2,849,839 |
Equity Balance, shares at May. 31, 2021 | 3,489,161 | |||
Equity Balance at May. 31, 2021 | $ 823,171 | $ 687,211 | $ 20,758,193 | $ 22,268,575 |
JEWETT-CAMERON TRADING COMPAN_5
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 2,849,839 | $ 1,216,089 |
Items not involving an outlay of cash: | ||
Depreciation and amortization | 175,171 | 160,992 |
(Gain) on sale of property, plant and equipment | 0 | (2,600) |
Deferred income tax expense | (57,768) | 39,571 |
(Increase) in accounts receivable | (4,776,635) | (4,044,507) |
Decrease (increase) in inventory | 1,430,506 | (408,282) |
(Increase) in notes receivable | 0 | (561,813) |
(Increase) in prepaid expenses | (1,544,728) | (942,541) |
Decrease in prepaid income taxes | 0 | 101,686 |
Increase in accounts payable and accrued liabilities | 736,595 | 1,448,292 |
Increase in income taxes payable | 189,594 | 0 |
Net cash (used in) provided by operating activities | (1,607,742) | (2,993,113) |
Stock-based compensation expense | 70,391 | 0 |
Gain on debt extinguishment | (680,707) | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (1,019,259) | (207,469) |
Proceeds from sale of property, plant and equipment | 0 | 3,900 |
Net cash provided by (used in) investing activities | (1,019,259) | (203,569) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank indebtedness | 996,010 | 0 |
Increase in notes payable | 0 | 680,707 |
Redemption of common stock | 0 | (3,867,046) |
Net cash provided by (used in) financing activities | 996,010 | (3,186,339) |
Net (decrease) in cash | (1,630,991) | (6,383,021) |
Cash, beginning of period | 3,801,037 | 9,652,310 |
Cash, end of period | $ 2,170,046 | $ 3,269,289 |
1. Nature of Operations
1. Nature of Operations | 9 Months Ended |
May 31, 2021 | |
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 incorporated under the laws of the State of Oregon: Jewett-Cameron Seed Company, (JCSC), incorporated October 2000, Greenwood Products, Inc. (Greenwood), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Former wholly owned subsidiary MSI-PRO was wound-up and dissolved in fiscal 2020. 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 was 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. In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. Government measures to limit the spread of COVID-19, including the closure of non-essential businesses, affected the Companys operations including delays in inventory production and shipping, a change of product mix based on customer demand to fencing, pet and DIY products, an increase in demand from online sales channels, and costs associated with compliance with COVID-19 control protocols. The Companys operations, including inventory production and sales, have been excluded from business restrictions within the jurisdictions that the Company operates. However, due to the rapid developments and uncertainty surrounding COVID-19, it is not possible to predict the impact that COVID-19 will have on the Companys business, financial position, and operating results in the future. In addition, it is possible that estimates in the Companys consolidated financial statements will change in the near term as a result of COVID-19 and the effect of any such changes could be material, which could result in, among other things valuation of inventory and collectability of accounts receivable. The Company continues to closely monitor the impact of the pandemic on all aspects of its business. |
2. Significant Accounting Polic
2. Significant Accounting Policies | 9 Months Ended |
May 31, 2021 | |
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. 2. SIGNIFICANT ACCOUNTING POLICIES 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 a maturity of three months or less at the time of issuance to be cash equivalents. At May 31, 2021, cash and cash equivalents were $2,170,046 compared to $3,801,037 at August 31, 2020. 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: Office equipment 3-7 years Warehouse equipment 2-10 years Buildings 5-30 years 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 POLICIES 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 primarily based in the United States. The Company does not have 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 or loss 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 nine month periods ended May 31, 2021 and 2020 are as follows: Three Month Periods ended May 31, Nine Month Periods ended May 31, 2021 2020 2021 2020 Net income $ 2,414,477 $ 1,396,973 $ 2,849,839 $ 1,216,089 Basic weighted average number of common shares outstanding 3,489,161 3,481,162 3,485,525 3,672,858 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 3,489,161 3,481,162 3,485,525 3,672,858 2. SIGNIFICANT ACCOUNTING POLICIES Earnings per share The Company has no items of other comprehensive income in any period 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. 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 Accounts receivable Accounts payable and accrued liabilities The estimated fair values of the Company's financial instruments as of May 31, 2021 and August 31, 2020 follows: May 31, 2021 August 31, 2020 Carrying Fair Carrying Fair Amount Value Amount Value Cash and cash equivalents $ 2,170,046 $ 2,170,046 $ 3,801,037 $ 3,801,037 Accounts receivable, net of allowance 11,051,061 11,051,061 6,274,426 6,274,426 Notes Payable - - 680,707 680,707 Accounts payable and accrued liabilities 3,847,956 3,847,956 3,111,361 3,111,361 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2021 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: 2. SIGNIFICANT ACCOUNTING POLICIES Financial instruments May 31, 2021 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 2,170,046 $ 2,170,046 $ $ 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 sales in the consolidated statements of operations. All costs billed to the customer are included as sales in the consolidated statements 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 February 2016, Topic 842, Leases Leases 2. SIGNIFICANT ACCOUNTING POLICIES In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-14 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. |
3. Inventory
3. Inventory | 9 Months Ended |
May 31, 2021 | |
Notes | |
3. Inventory | 3. INVENTORY A summary of inventory is as follows: May 31, 2021 August 31, 2020 Wood products and metal products $ 7,446,038 $ 9,017,349 Agricultural seed products 321,602 180,797 $ 7,767,640 $ 9,198,146 |
4. Property, Plant and Equipmen
4. Property, Plant and Equipment | 9 Months Ended |
May 31, 2021 | |
Notes | |
4. Property, Plant and Equipment | 4. PROPERTY, PLANT AND EQUIPMENT A summary of property, plant, and equipment is as follows: May 31, 2021 August 31, 2020 Office equipment $ 535,614 $ 654,739 Warehouse equipment 1,345,149 1,293,331 Buildings 5,012,285 4,182,332 Land 559,065 559,065 7,452,113 6,689,467 Accumulated depreciation (3,652,711) (3,721,902) Net book value $ 3,799,402 $ 2,967,565 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 | 9 Months Ended |
May 31, 2021 | |
Notes | |
5. Intangible Assets | 5. INTANGIBLE ASSETS May 31, 2021 August 31, 2020 Intangible assets 28,905 16,405 Accumulated amortization (15,995) (15,746) Net book value $ 12,910 $ 659 |
6. Deferred Income Taxes
6. Deferred Income Taxes | 9 Months Ended |
May 31, 2021 | |
Notes | |
6. Deferred Income Taxes | 6. DEFERRED INCOME TAXES Deferred income tax liability as of May 31, 2021 of $39,184 (August 31, 2020 - $96,952) reflect 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 | 9 Months Ended |
May 31, 2021 | |
Notes | |
7. Bank Indebtedness | 7. BANK INDEBTEDNESS Bank indebtedness under the Companys $3,000,000 line of credit as of May 31, 2021 was $996,010 (August 31, 2020 - $0). Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. Interest is calculated solely on the one month LIBOR rate plus 175 basis points. As of May 31, 2021, the interest rate was 1.875% |
8. Notes Payable
8. Notes Payable | 9 Months Ended |
May 31, 2021 | |
Notes | |
8. Notes Payable | 8. NOTES PAYABLE On May 4, 2020, the Company entered into loan agreements with U.S. Bank (the Lender) for two unsecured loans represented by promissory notes (the Notes). The loans were made pursuant to the Paycheck Protection Program (the PPP) as part of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) administered by the U.S. Small Business Administration (SBA). The first loan was made to JCC for $487,127 and the second loan was made to JC USA for $193,580. The total principal amount of the two notes is $680,707. They have a term of 2 years with a 1% annual interest rate. Payments were originally deferred for 6 months, after which the repayment of principal and interest is required to be made in equal monthly payments over 18 months beginning December 4, 2020. However, the SBA subsequently revised the due date to either the date that SBA remits the borrowers loan forgiveness amount to the lender or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrowers loan forgiveness covered period. The Company has chosen to account for the loans under FASB ASC 470. Repayment amounts due within 1 year have been recorded as current liabilities, and the remaining amounts due in more than 1 year as long-term liabilities. If the Company is successful in receiving forgiveness for those portions of the loan used for qualifying expenses, those amounts will be recorded as a gain upon extinguishment. During the 3 rd |
9. Capital Stock
9. Capital Stock | 9 Months Ended |
May 31, 2021 | |
Notes | |
9. Capital Stock | 9. 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. |
10. Cancellation of Capital Sto
10. Cancellation of Capital Stock | 9 Months Ended |
May 31, 2021 | |
Notes | |
10. Cancellation of Capital Stock | 10. CANCELLATION OF CAPITAL STOCK 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 2 nd 7.89 per share, calculated as the Volume Weighted Average Price (VWAP) of all the shares traded on NASDAQ during the first quarter of fiscal 2020. |
11. Share-based Incentive Plans
11. Share-based Incentive Plans | 9 Months Ended |
May 31, 2021 | |
Notes | |
11. Share-based Incentive Plans | 11. SHARE-BASED INCENTIVE PLANS Stock Options The Company formerly had a stock option program under which stock options to purchase securities from the Company could 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 could 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 vested at the discretion of the Board of Directors. During the year ended August 31, 2020, the Companys Board of Directors approved the termination of the stock option program. The Company had no stock options outstanding as of May 31, 2021 and August 31, 2020. Restricted Share Plan The Company has a Restricted Share Plan (the Plan) as approved by shareholders on February 8, 2019. The Plan allows the Company to grant, from time to time, restricted shares as compensation to directors, officers, employees and consultants of the Company. The Restricted Shares are subject to restrictions, including the period under which the shares will be restricted (the Restricted Period) and subject to forfeiture which is determined by the Board at the time of the grant. The recipient of Restricted Shares is entitled to all of the rights of a shareholder, including the right to vote such shares and the right to receive any dividends, except that the shares granted under the Plan are nontransferable during the Restricted Period. 11. SHARE-BASED INCENTIVE PLANS (Continued) Restricted Share Plan (Continued) The maximum number of Common Shares reserved for issuance under the Plan will not exceed 1% of the then issued and outstanding number of Common Shares at the time of the grant. As of February 28, 2021, the maximum number of shares available to be issued under the Plan was 31,713. During the second quarter of fiscal 2021 ended February 28, 2021, the Board of Directors set the compensation for members of the Board under the Plan. Non-executive directors will be granted 25 common shares for each quarter of service, with the cumulative amount of shares earned each fiscal year to be granted shortly after the close of that fiscal year. Non-executive Directors also received a one-time initial grant of 225 common shares which were issued in December 2020. During the nine months ended May 31, 2021, the Company issued 7,999 common shares to Officers, Directors and Employees under the RSA Plan. 6,564 of these shares were issued to Officers and Directors without a Restricted Period under the Companys S-8 Registration Statement filed on December 7, 2020. The remaining 1,435 shares were issued to Employees and have a three-year Restricted Period. |
12. Pension and Profit-sharing
12. Pension and Profit-sharing Plans | 9 Months Ended |
May 31, 2021 | |
Notes | |
12. Pension and Profit-sharing Plans | 12. PENSION AND PROFIT-SHARING PLANS The Company has a deferred compensation 401(k) plan for all employees with at least 6 months of service pending a monthly enrollment time. The plan allows for a non-elective discretionary contribution plus matching employee contributions up to a specific limit. The percentages of contribution remain the discretion of the Board and are reviewed with management annually. For the nine months ended May 31, 2021 and 2020, the 401(k) compensation expense was $393,218 and $330,208, respectively. |
13. Discontinued Operations
13. Discontinued Operations | 9 Months Ended |
May 31, 2021 | |
Notes | |
13. Discontinued Operations | 13. DISCONTINUED OPERATIONS Effective September 1, 2019, the Board of Directors decided to permanently close the MSI division and exit the industrial tools business. As of August 31, 2020, the remaining inventory has been liquidated, the division has been wound-up, and the subsidiary has been voluntarily dissolved. The operations and assets of MSI were significantly immaterial to the Companys overall performance. As such, separate disclosure of MSIs operations as discontinued operations within the Companys statement of operations was not considered necessary. |
14. Segment Information
14. Segment Information | 9 Months Ended |
May 31, 2021 | |
Notes | |
14. Segment Information | 14. SEGMENT INFORMATION The Company has four principal reportable segments. Three segments are continuing operations and one, Industrial Tools and Clamps, is considered as a discontinued operation. 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. 14. SEGMENT INFORMATION The following is a summary of segmented information for the nine month periods ended May 31, 2021 and 2020. 2021 2020 Sales to unaffiliated customers: Industrial wood products $ 1,883,064 $ 1,955,669 Lawn, garden, pet and other 37,843,378 27,493,875 Seed processing and sales 2,670,149 1,230,765 Industrial tools and clamps - 238,036 $ 42,396,591 $ 30,918,345 Income (loss) before income taxes: Industrial wood products $ (46,258) $ (69,619) Lawn, garden, pet and other 3,592,546 1,626,378 Seed processing and sales 94,339 (60,458) Industrial tools and clamps - (238,195) Corporate and administrative 245,108 505,597 $ 3,885,735 $ 1,763,703 Identifiable assets: Industrial wood products $ 701,021 $ 780,726 Lawn, garden, pet and other 19,205,736 13,346,110 Seed processing and sales 793,392 547,496 Industrial tools and clamps - 741 Corporate and administrative 6,681,766 7,057,217 $ 27,381,915 $ 21,732,290 Depreciation and amortization: Industrial wood products $ - $ - Lawn, garden, pet and other 29,335 20,777 Seed processing and sales 4,761 4,761 Industrial tools and clamps - 2,241 Corporate and administrative 141,075 133,213 $ 175,171 $ 160,992 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - - Industrial tools and clamps - - Corporate and administrative 942,188 207,469 $ 942,188 $ 207,469 Interest expense: $ - $ - The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the nine months ended May 31, 2021 and 2020: 2021 2020 Sales $ 22,279,565 $ 12,605,112 14. SEGMENT INFORMATION 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 nine months ended May 31, 2020 and 2019: 2021 2020 United States $ 40,698,374 $ 30,184,205 Canada 1,197,681 535,049 Mexico / Latin America / Caribbean 181,168 159,926 Europe 171,254 6,867 Asia/Pacific 148,114 32,298 All of the Companys significant identifiable assets were located in the United States as of May 31, 2021 and 2020. |
15. Risks
15. Risks | 9 Months Ended |
May 31, 2021 | |
Notes | |
15. Risks | 15. RISKS 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 May 31, 2021, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 59%. At May 31, 2020, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 56%. 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 nine months ended May 31, 2021, there were three suppliers that each accounted for 10% or greater of total purchases, and the aggregate purchases amounted to $14,782,935. For the nine months ended May 31, 2020, there were two suppliers that each accounted for 10% or greater of total purchases, and the aggregate purchases amounted to $13,119,225. |
16. Supplemental Disclosure Wit
16. Supplemental Disclosure With Respect To Cash Flows | 9 Months Ended |
May 31, 2021 | |
Notes | |
16. Supplemental Disclosure With Respect To Cash Flows | 16. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Certain cash payments for the nine months ended May 31, 2021 and 2020 are summarized as follows: 2021 2020 Cash paid during the periods for: Interest $ - $ - Income taxes $ 338,746 $ 342,897 There were no non-cash investing or financing activities during the periods presented. |
17. Contingency
17. Contingency | 9 Months Ended |
May 31, 2021 | |
Notes | |
17. Contingency | 17. CONTINGENCY The Company is a named party in a Civil Action in Pennsylvania. The matter is an action seeking compensation for personal injuries and is based on theories of product liability as to Jewett-Cameron. The matter arises out of a dog allegedly escaping from a Jewett-Cameron kennel product and causing personal injuries to three individuals. Jewett-Cameron is currently one of three named Defendants. A trial date has not been set at this time. At the present time it is speculative to predict as to its outcome. It is the Companys intention to vigorously defend the lawsuit. Jewett Camerons applicable liability insurer is providing a defense covering Jewett-Camerons legal fees and costs. The Company has initiated arbitration against a former distributor asserting a breach of the distribution agreement and seeking damages. This distributor has raised a counter claim in Illinois federal court against the Company asserting a breach of the same contract and seeking damages. While company is robustly pursuing its rights and defending itself against claims, the arbitration and lawsuit are in their initial stages and therefore it is speculative to predict as to its outcome |
18. Subsequent Events
18. Subsequent Events | 9 Months Ended |
May 31, 2021 | |
Notes | |
18. Subsequent Events | 18. SUBSEQUENT EVENTS |
2. Significant Accounting Pol_2
2. Significant Accounting Policies: Generally accepted accounting principles (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Pol_3
2. Significant Accounting Policies: Principles of Consolidation (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Pol_4
2. Significant Accounting Policies: Estimates (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Pol_5
2. Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 9 Months Ended |
May 31, 2021 | |
Policies | |
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. At May 31, 2021, cash and cash equivalents were $2,170,046 compared to $3,801,037 at August 31, 2020. |
2. Significant Accounting Pol_6
2. Significant Accounting Policies: Accounts Receivable (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Pol_7
2. Significant Accounting Policies: Inventory (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Pol_8
2. Significant Accounting Policies: Property, Plant and Equipment (Policies) | 9 Months Ended |
May 31, 2021 | |
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: Office equipment 3-7 years Warehouse equipment 2-10 years Buildings 5-30 years |
2. Significant Accounting Pol_9
2. Significant Accounting Policies: Intangibles (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Po_10
2. Significant Accounting Policies: Asset Retirement Obligations (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Po_11
2. Significant Accounting Policies: Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Po_12
2. Significant Accounting Policies: Currency and Foreign Exchange (Policies) | 9 Months Ended |
May 31, 2021 | |
Policies | |
Currency and Foreign Exchange | Currency and foreign exchange These financial statements are expressed in U.S. dollars as the Company's operations are primarily based in the United States. The Company does not have 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 Po_13
2. Significant Accounting Policies: Earnings Per Share (Policies) | 9 Months Ended |
May 31, 2021 | |
Policies | |
Earnings Per Share | Earnings per share Basic earnings per common share is computed by dividing net income or loss 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 nine month periods ended May 31, 2021 and 2020 are as follows: Three Month Periods ended May 31, Nine Month Periods ended May 31, 2021 2020 2021 2020 Net income $ 2,414,477 $ 1,396,973 $ 2,849,839 $ 1,216,089 Basic weighted average number of common shares outstanding 3,489,161 3,481,162 3,485,525 3,672,858 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 3,489,161 3,481,162 3,485,525 3,672,858 2. SIGNIFICANT ACCOUNTING POLICIES Earnings per share The Company has no items of other comprehensive income in any period presented. Therefore, net income presented in the consolidated statements of operations equals comprehensive income. |
2. Significant Accounting Po_14
2. Significant Accounting Policies: Stock-based Compensation (Policies) | 9 Months Ended |
May 31, 2021 | |
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. |
2. Significant Accounting Po_15
2. Significant Accounting Policies: Financial Instruments (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Accounts receivable Accounts payable and accrued liabilities The estimated fair values of the Company's financial instruments as of May 31, 2021 and August 31, 2020 follows: May 31, 2021 August 31, 2020 Carrying Fair Carrying Fair Amount Value Amount Value Cash and cash equivalents $ 2,170,046 $ 2,170,046 $ 3,801,037 $ 3,801,037 Accounts receivable, net of allowance 11,051,061 11,051,061 6,274,426 6,274,426 Notes Payable - - 680,707 680,707 Accounts payable and accrued liabilities 3,847,956 3,847,956 3,111,361 3,111,361 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2021 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: 2. SIGNIFICANT ACCOUNTING POLICIES Financial instruments May 31, 2021 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 2,170,046 $ 2,170,046 $ $ The fair values of cash are determined through market, observable and corroborated sources. |
2. Significant Accounting Po_16
2. Significant Accounting Policies: Income taxes (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Po_17
2. Significant Accounting Policies: Shipping and Handling Costs (Policies) | 9 Months Ended |
May 31, 2021 | |
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 sales in the consolidated statements of operations. All costs billed to the customer are included as sales in the consolidated statements of operations. |
2. Significant Accounting Po_18
2. Significant Accounting Policies: Revenue Recognition (Policies) | 9 Months Ended |
May 31, 2021 | |
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 Po_19
2. Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
May 31, 2021 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, Topic 842, Leases Leases 2. SIGNIFICANT ACCOUNTING POLICIES In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-14 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. |
2. Significant Accounting Po_20
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Month Periods ended May 31, Nine Month Periods ended May 31, 2021 2020 2021 2020 Net income $ 2,414,477 $ 1,396,973 $ 2,849,839 $ 1,216,089 Basic weighted average number of common shares outstanding 3,489,161 3,481,162 3,485,525 3,672,858 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 3,489,161 3,481,162 3,485,525 3,672,858 |
2. Significant Accounting Po_21
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Fair Value, Option, Quantitative Disclosures | May 31, 2021 August 31, 2020 Carrying Fair Carrying Fair Amount Value Amount Value Cash and cash equivalents $ 2,170,046 $ 2,170,046 $ 3,801,037 $ 3,801,037 Accounts receivable, net of allowance 11,051,061 11,051,061 6,274,426 6,274,426 Notes Payable - - 680,707 680,707 Accounts payable and accrued liabilities 3,847,956 3,847,956 3,111,361 3,111,361 |
2. Significant Accounting Po_22
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | May 31, 2021 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 2,170,046 $ 2,170,046 $ $ |
3. Inventory_ Schedule of Inven
3. Inventory: Schedule of Inventory, Current (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Schedule of Inventory, Current | May 31, 2021 August 31, 2020 Wood products and metal products $ 7,446,038 $ 9,017,349 Agricultural seed products 321,602 180,797 $ 7,767,640 $ 9,198,146 |
4. Property, Plant and Equipm_2
4. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Property, Plant and Equipment | May 31, 2021 August 31, 2020 Office equipment $ 535,614 $ 654,739 Warehouse equipment 1,345,149 1,293,331 Buildings 5,012,285 4,182,332 Land 559,065 559,065 7,452,113 6,689,467 Accumulated depreciation (3,652,711) (3,721,902) Net book value $ 3,799,402 $ 2,967,565 |
5. Intangible Assets_ Schedule
5. Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | May 31, 2021 August 31, 2020 Intangible assets 28,905 16,405 Accumulated amortization (15,995) (15,746) Net book value $ 12,910 $ 659 |
14. Segment Information_ Schedu
14. Segment Information: Schedule of Segment Reporting Information (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Schedule of Segment Reporting Information | 2021 2020 Sales to unaffiliated customers: Industrial wood products $ 1,883,064 $ 1,955,669 Lawn, garden, pet and other 37,843,378 27,493,875 Seed processing and sales 2,670,149 1,230,765 Industrial tools and clamps - 238,036 $ 42,396,591 $ 30,918,345 Income (loss) before income taxes: Industrial wood products $ (46,258) $ (69,619) Lawn, garden, pet and other 3,592,546 1,626,378 Seed processing and sales 94,339 (60,458) Industrial tools and clamps - (238,195) Corporate and administrative 245,108 505,597 $ 3,885,735 $ 1,763,703 Identifiable assets: Industrial wood products $ 701,021 $ 780,726 Lawn, garden, pet and other 19,205,736 13,346,110 Seed processing and sales 793,392 547,496 Industrial tools and clamps - 741 Corporate and administrative 6,681,766 7,057,217 $ 27,381,915 $ 21,732,290 Depreciation and amortization: Industrial wood products $ - $ - Lawn, garden, pet and other 29,335 20,777 Seed processing and sales 4,761 4,761 Industrial tools and clamps - 2,241 Corporate and administrative 141,075 133,213 $ 175,171 $ 160,992 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - - Industrial tools and clamps - - Corporate and administrative 942,188 207,469 $ 942,188 $ 207,469 Interest expense: $ - $ - |
14. Segment Information_ Sales
14. Segment Information: Sales in excess of ten percent of total sales (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Sales in excess of ten percent of total sales | 2021 2020 Sales $ 22,279,565 $ 12,605,112 |
14. Segment Information_ Sche_2
14. Segment Information: Schedule of sales by country (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Schedule of sales by country | 2021 2020 United States $ 40,698,374 $ 30,184,205 Canada 1,197,681 535,049 Mexico / Latin America / Caribbean 181,168 159,926 Europe 171,254 6,867 Asia/Pacific 148,114 32,298 |
16. Supplemental Disclosure W_2
16. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Schedule of Cash Flow, Supplemental Disclosures | 2021 2020 Cash paid during the periods for: Interest $ - $ - Income taxes $ 338,746 $ 342,897 |
2. Significant Accounting Po_23
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | May 31, 2021 | May 31, 2020 | |
Details | |||||
Net income | $ 2,414,477 | $ 1,396,973 | $ 1,568,436 | $ 2,849,839 | $ 1,216,089 |
Basic weighted average number of common shares outstanding | 3,489,161 | 3,481,162 | 3,485,525 | 3,672,858 | |
Stock options | 0 | 0 | 0 | 0 | |
Diluted | 3,489,161 | 3,481,162 | 3,485,525 | 3,672,858 |
2. Significant Accounting Po_24
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2019 |
Details | ||||
Cash and cash equivalents | $ 2,170,046 | $ 3,801,037 | $ 3,269,289 | $ 9,652,310 |
Accounts receivable, net of allowance | 11,051,061 | 6,274,426 | ||
Notes Payable to Bank | 0 | 680,707 | ||
Accounts payable and accrued liabilities | $ 3,847,956 | $ 3,111,361 |
2. Significant Accounting Po_25
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Details) | May 31, 2021USD ($) |
Details | |
Cash and cash equivalents | $ 2,170,046 |
3. Inventory_ Schedule of Inv_2
3. Inventory: Schedule of Inventory, Current (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 | |
Details | |||
Wood products and metal products | $ 7,446,038 | $ 9,017,349 | |
Agricultural seed products | 321,602 | 180,797 | |
Inventory, net | [1] | $ 7,767,640 | $ 9,198,146 |
[1] | BS1 |
4. Property, Plant and Equipm_3
4. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 | |
Details | |||
Office equipment | $ 535,614 | $ 654,739 | |
Warehouse equipment | 1,345,149 | 1,293,331 | |
Buildings | 5,012,285 | 4,182,332 | |
Land | 559,065 | 559,065 | |
Property, Plant and Equipment, Gross | 7,452,113 | 6,689,467 | |
Accumulated depreciation property plant and equipment | (3,652,711) | (3,721,902) | |
Net book value | [1] | $ 3,799,402 | $ 2,967,565 |
[1] | BS2 |
5. Intangible Assets_ Schedul_2
5. Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Details | ||
Trademarks, trade names and other | $ 28,905 | $ 16,405 |
Accumulated amortization | (15,995) | (15,746) |
Net book value | $ 12,910 | $ 659 |
6. Deferred Income Taxes (Detai
6. Deferred Income Taxes (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 | |
Details | |||
Deferred tax liability (note 6) | [1] | $ 39,184 | $ 96,952 |
[1] | BS5 |
7. Bank Indebtedness (Details)
7. Bank Indebtedness (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 | |
Details | |||
Line of Credit Facility, Current Borrowing Capacity | $ 3,000,000 | ||
Bank indebtedness (note 7) | [1] | $ 996,010 | $ 0 |
[1] | BS4 |
8. Notes Payable (Details)
8. Notes Payable (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Notes Payable to Bank | $ 0 | $ 680,707 |
JCC Cares Act Loan | ||
Notes Payable to Bank | 487,127 | |
JC USA Cares Act Loan | ||
Notes Payable to Bank | $ 193,580 |
10. Cancellation of Capital S_2
10. Cancellation of Capital Stock (Details) | 3 Months Ended |
Feb. 29, 2020USD ($)$ / sharesshares | |
Details | |
Shares repurchased and cancelled | shares | 490,120 |
Average price per share repurchased and cancelled | $ / shares | $ 7.89 |
Payments for Repurchase of Common Stock | $ 3,867,046 |
Decrease to retained earnings | $ 3,751,427 |
12. Pension and Profit-sharin_2
12. Pension and Profit-sharing Plans (Details) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Details | ||
Payment for Pension Benefits | $ 393,218 | $ 330,208 |
14. Segment Information_ Sche_3
14. Segment Information: Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Details | ||||
Industrial wood products, sales | $ 1,883,064 | $ 1,955,669 | ||
Lawn, garden, pet and other, sales | 37,843,378 | 27,493,875 | ||
Seed processing and sales, sales | 2,670,149 | 1,230,765 | ||
Industrial tools and clamps, sales | 0 | 238,036 | ||
SALES | $ 21,619,952 | $ 16,241,239 | 42,396,591 | 30,918,345 |
Industrial wood products, income before tax | (46,258) | (69,619) | ||
Lawn, garden, pet and other, income before tax | 3,592,546 | 1,626,378 | ||
Seed processing and sales, income before tax | 94,339 | (60,458) | ||
Industrial tools and clamps, income before tax | 0 | (238,195) | ||
Corporate and administrative income before tax | 245,108 | 505,597 | ||
Income before income taxes | 3,885,735 | 1,763,703 | ||
Industrial wood products, assets | 701,021 | 780,726 | ||
Lawn, garden, pet and other, assets | 19,205,736 | 13,346,110 | ||
Seed processing and sales, assets | 793,392 | 547,496 | ||
Industrial tools and clamps, assets | 0 | 741 | ||
Corporate and administrative assets | 6,681,766 | 7,057,217 | ||
Identifiable assets | 27,381,915 | 21,732,290 | ||
Industrial wood products, depreciation and amortization | 0 | 0 | ||
Lawn, garden, pet and other, depreciation and amortization | 29,335 | 20,777 | ||
Seed processing and sales, depreciation and amortization | 4,761 | 4,761 | ||
Industrial tools and clamps, depreciation and amortization | 0 | 2,241 | ||
Corporate and administrative depreciation and amortization | 141,075 | 133,213 | ||
Corporate and administrative depreciation and amortization | 175,171 | 160,992 | ||
Corporate and administrative capital expenditures | 942,188 | 207,469 | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 0 | $ 0 |
14. Segment Information_ Sche_4
14. Segment Information: Schedule of sales by country (Details) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Details | ||
United States sales | $ 40,698,374 | $ 30,184,205 |
Canada sales | 1,197,681 | 535,049 |
Mexico/Latin America sales | 181,168 | 159,926 |
Europe sales | 171,254 | 6,867 |
Asia/Pacific sales | $ 148,114 | $ 32,298 |
15. Risks (Details)
15. Risks (Details) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Details | ||
Concentration Risk, Customer | 59 | 56 |
Concentration, volume of purchases | $ 14,782,935 | $ 13,119,225 |
16. Supplemental Disclosure W_3
16. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Details | ||
Interest | $ 0 | $ 0 |
Income taxes | $ 338,746 | $ 342,897 |
18. Subsequent Events (Details)
18. Subsequent Events (Details) | 9 Months Ended |
May 31, 2021 | |
Details | |
Subsequent Event, Description | Effective June 15, 2021, the Company’s Line of Credit was increased from $3,000,000 to $5,000,000 |
Uncategorized Items - jctcf-202
Label | Element | Value |
Common Stock | ||
Net income | us-gaap_NetIncomeLoss | $ 0 |
Additional Paid-in Capital | ||
Net income | us-gaap_NetIncomeLoss | 0 |
Retained Earnings | ||
Net income | us-gaap_NetIncomeLoss | $ 1,568,436 |