Cover
Cover - shares | 6 Months Ended | |
Feb. 28, 2023 | Apr. 13, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Feb. 28, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --08-31 | |
Entity File Number | 000-19954 | |
Entity Registrant Name | JEWETT-CAMERON TRADING COMPANY LTD | |
Entity Central Index Key | 0000885307 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Incorporation, State or Country Code | A1 | |
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 | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,498,899 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 268,389 | $ 484,463 |
Accounts receivable, net of allowance of $0 (August 31, 2022 - $0) | 4,261,256 | 7,191,646 |
Inventory, net of allowance of $449,707 (August 31, 2022 - $800,000) (note 3) | 23,079,647 | 20,632,313 |
Prepaid expenses | 794,566 | 1,112,575 |
Prepaid income taxes | 208,138 | 208,963 |
Total current assets | 28,611,996 | 29,629,960 |
Property, plant and equipment, net (note 4) | 4,931,022 | 4,828,420 |
Intangible assets, net (note 5) | 32,822 | 33,358 |
Deferred tax assets (note 6) | 397,990 | 24,998 |
Total assets | 33,973,830 | 34,516,736 |
Current liabilities | ||
Accounts payable | 710,174 | 1,566,047 |
Bank indebtedness (note 7) | 8,500,000 | 7,000,000 |
Accrued liabilities | 1,691,501 | 1,856,039 |
Total liabilities | 10,901,675 | 10,422,086 |
Stockholders’ equity | ||
Capital stock (note 8, 9) Authorized 21,567,564 common shares, no par value 10,000,000 preferred shares, no par value Issued 3,498,899 common shares (August 31, 2022 –3,495,342) | 825,468 | 824,629 |
Additional paid-in capital | 765,055 | 742,591 |
Retained earnings | 21,481,632 | 22,527,430 |
Total stockholders’ equity | 23,072,155 | 24,094,650 |
Total liabilities and stockholders’ equity | $ 33,973,830 | $ 34,516,736 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 0 | $ 0 |
Inventory, Net of Allowances, Customer Advances and Progress Billings | $ 449,707 | $ 800,000 |
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 | 3,498,899 | 3,495,342 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Income Statement [Abstract] | ||||
SALES | $ 8,143,421 | $ 14,060,751 | $ 20,720,921 | $ 26,978,475 |
COST OF SALES | 6,222,879 | 10,636,524 | 15,940,679 | 21,089,386 |
GROSS PROFIT | 1,920,542 | 3,424,227 | 4,780,242 | 5,889,089 |
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 1,096,090 | 684,116 | 1,922,897 | 1,672,403 |
Depreciation and amortization | 88,079 | 84,071 | 199,615 | 153,709 |
Wages and employee benefits | 1,946,458 | 1,959,300 | 3,874,613 | 3,833,418 |
Total Operating Expenses | 3,130,627 | 2,727,487 | 5,997,125 | 5,659,530 |
(Loss) income from operations | (1,210,085) | 696,740 | (1,216,883) | 229,559 |
OTHER ITEMS | ||||
Other income | 2,000 | 5,000 | ||
Interest expense | (114,530) | (30,620) | (201,082) | (50,896) |
Accrual for legal claim | (300,000) | (300,000) | ||
Total other items | (114,530) | (328,620) | (201,082) | (345,896) |
(Loss) income before income taxes | (1,324,615) | 368,120 | (1,417,965) | (116,337) |
Income tax recovery (expense) | 352,577 | (98,300) | 372,167 | (4,985) |
Net (loss) income | $ (972,038) | $ 269,820 | $ (1,045,798) | $ (121,322) |
Basic (loss) earnings per common share | $ (0.28) | $ 0.08 | $ (0.30) | $ (0.03) |
Diluted (loss) earnings per common share | $ (0.28) | $ 0.08 | $ (0.30) | $ (0.03) |
Weighted average number of common shares outstanding: | ||||
Basic | 3,498,899 | 3,492,842 | 3,497,543 | 3,491,969 |
Diluted | 3,498,899 | 3,492,842 | 3,497,543 | 3,491,969 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Aug. 31, 2021 | $ 823,171 | $ 687,211 | $ 21,363,307 | $ 22,873,689 |
Beginning Balance, shares at Aug. 31, 2021 | 3,489,161 | |||
Shares issued pursuant to compensation plans (note 9) | $ 868 | 38,518 | 39,386 | |
Shares issued pursuant to compensation plans (note 9) , shares | 3,681 | |||
Net loss | (121,322) | (121,322) | ||
Ending balance, value at Feb. 28, 2022 | $ 824,039 | 725,729 | 21,241,985 | 22,791,753 |
Ending Balance, shares at Feb. 28, 2022 | 3,492,842 | |||
Shares issued pursuant to compensation plans (note 9) | $ 590 | 16,862 | 17,452 | |
Shares issued pursuant to compensation plans (note 9) , shares | 2,500 | |||
Net loss | 1,285,445 | 1,285,445 | ||
Ending balance, value at Aug. 31, 2022 | $ 824,629 | 742,591 | 22,527,430 | 24,094,650 |
Ending Balance, shares at Aug. 31, 2022 | 3,495,342 | |||
Shares issued pursuant to compensation plans (note 9) | $ 839 | 22,464 | 23,303 | |
Shares issued pursuant to compensation plans (note 9) , shares | 3,557 | |||
Net loss | (1,045,798) | (1,045,798) | ||
Ending balance, value at Feb. 28, 2023 | $ 825,468 | $ 765,055 | $ 21,481,632 | $ 23,072,155 |
Ending Balance, shares at Feb. 28, 2023 | 3,498,899 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (1,045,798) | $ (121,322) |
Items not involving an outlay of cash: | ||
Depreciation and amortization | 199,615 | 153,709 |
Stock-based compensation expense | 23,303 | 39,386 |
Deferred income taxes | (372,992) | 8,889 |
Changes in non-cash working capital items: | ||
(Increase) decrease in accounts receivable | 2,930,390 | (2,050,751) |
Increase in inventory | (2,447,334) | (4,238,783) |
Decrease (increase) in prepaid expenses | 318,009 | (254,073) |
Increase (decrease) in accounts payable and accrued liabilities | (1,020,411) | 591,335 |
Decrease (increase) in prepaid income taxes | 825 | (5,247) |
Net cash used in operating activities | (1,414,393) | (5,876,857) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (301,681) | (908,401) |
Net cash used in investing activities | (301,681) | (908,401) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank indebtedness | 1,500,000 | 6,500,000 |
Net cash provided by financing activities | 1,500,000 | 6,500,000 |
Net decrease in cash | (216,074) | (285,258) |
Cash, beginning of period | 484,463 | 1,184,313 |
Cash, end of period | $ 268,389 | $ 899,055 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 6 Months Ended |
Feb. 28, 2023 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Jewett-Cameron Trading Company Ltd. (the “Company”) 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. JCLC’s 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. 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. JCC’s business consists of the manufacturing and distribution of pet, fencing and other products, wholesale distribution to home centers, other retailers, on-line as well as direct to end consumers 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. 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. A number of external factors can adversely affect general workforces, economies and financial markets globally. Examples include, but are not limited to, the COVID-19 global pandemic and political conflict in other regions. It is not possible for the Company to predict the duration or magnitude of adverse results of such external factors and their effect on the Company’s business, financial condition, or ability to raise funds. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Feb. 28, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These unaudited consolidated interim financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America (“US GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC"). Principles of consolidation These consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, JC USA, JCC, 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 US GAAP 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 Company’s 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 February 28, 2023, cash and cash equivalents were $ 268,389 484,463 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: Schedule of property plant and equipment useful life Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 Intangibles The Company’s 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 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 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, 2023 and 2022 are as follows: Schedule of Earnings Per Share, Basic and Diluted Three Month Periods ended February 28, Six Month Periods ended February 28, 2023 2022 2023 2022 Net (loss) income $ (972,038 ) $ 269,820 $ (1,045,798 ) $ (121,322 ) Basic weighted average number of common shares outstanding 3,498,899 3,492,842 3,497,543 3,491,969 Effect of dilutive securities Stock options — — — — Diluted weighted average number of common shares outstanding 3,498,899 3,492,842 3,497,543 3,491,969 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. 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 Bank Indebtedness Accounts payable and accrued liabilities The estimated fair values of the Company's financial instruments as of February 28, 2023 and August 31, 2022 is as follows: Fair Value, Option, Quantitative Disclosures February 28, 2023 August 31, 2022 Carrying Fair Carrying Fair Amount Value Amount Value Cash and cash equivalents $ 268,389 $ 268,389 $ 484,463 $ 484,463 Accounts receivable, net of allowance 4,261,256 4,261,256 7,191,646 7,191,646 Accounts payable and accrued liabilities 2,401,675 2,401,675 3,422,086 3,422,086 Bank indebtedness 8,500,000 8,500,000 7,000,000 7,000,000 The following table presents information about the assets that are measured at fair value on a recurring basis as of February 28, 2023 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: Fair Value, Assets Measured on Recurring Basis February 28, 2023 Quoted Prices Significant Significant Assets: Cash and cash equivalents $ 268,389 $ 268,389 $ — $ — 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, 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. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Feb. 28, 2023 | |
Inventory Disclosure [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 3. INVENTORY A summary of inventory is as follows: Schedule of Inventory, Current February 28, 2023 August 31, 2022 Wood products and metal products $ 22,355,455 $ 20,130,063 Agricultural seed products 724,192 502,250 Inventory Net $ 23,079,647 $ 20,632,313 4. PROPERTY, PLANT AND EQUIPMENT A summary of property, plant, and equipment is as follows: Schedule of property, plant, and equipment February 28, 2023 August 31, 2022 Office equipment $ 648,978 $ 636,501 Warehouse equipment 1,714,239 1,504,867 Buildings 6,172,975 6,168,080 Land 559,065 559,065 Property, Plant and Equipment, Gross 9,095,257 8,868,513 Accumulated depreciation (4,164,235 ) (4,040,093 ) Net book value $ 4,931,022 $ 4,828,420 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. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Feb. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS A summary of intangible assets is as follows: Schedule of Finite- Lived Intangible Assets February 28, 2023 August 31, 2022 Intangible assets $ 50,695 $ 50,695 Accumulated amortization (17,873 ) (17,337 ) Net book value $ 32,822 $ 33,358 |
BANK INDEBTEDNESS
BANK INDEBTEDNESS | 6 Months Ended |
Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
BANK INDEBTEDNESS | 6. DEFERRED INCOME TAXES Deferred income tax asset as of February 28, 2023 of $ 397,990 24,998 7. BANK INDEBTEDNESS Bank indebtedness under the Company’s $ 10,000,000 8,500,000 7,000,000 Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. Interest was previously calculated solely on the one-month LIBOR rate plus 175 basis points. Beginning with the monthly interest payment due March 31, 2022, the Company’s Bank Line of Credit agreement was revised to change the calculation of the interest rate from the one-month LIBOR rate to the one-month Secured Overnight Financing Rate (SOFR). Interest is now calculated based on the one-month SOFR plus 157 basis points, which as of February 28, 2023 was 6.12 |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Feb. 28, 2023 | |
Equity [Abstract] | |
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. |
RESTRICTED SHARE PLAN
RESTRICTED SHARE PLAN | 6 Months Ended |
Feb. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
RESTRICTED SHARE PLAN | 9. 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. 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, 2023, the maximum number of shares available to be issued under the Plan was 17,074 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 six-month period ended February 28, 2023, the Company issued 3,557 – 3,681 common shares) to officers, directors and employees under the RSA. The value of these shares was $ 23,303 39,386 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Feb. 28, 2023 | |
Retirement Benefits [Abstract] | |
SEGMENT INFORMATION | 10. 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 six-month periods ended February 28, 2023 and 2022 the 401(k) compensation expense were $ 276,780 288,216 11. SEGMENT INFORMATION The Company has three 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 for the six-month periods ended February 28, 2023 and 2022. Schedule of Segment Reporting Information 2023 2022 Sales to unaffiliated customers: Industrial wood products $ 939,600 $ 1,119,670 Lawn, garden, pet and other 18,871,381 24,203,362 Seed processing and sales 909,940 1,655,443 $ 20,720,921 $ 26,978,475 (Loss) income before income taxes: Industrial wood products $ (105,466 ) $ 43,946 Lawn, garden, pet and other (1,572,114 ) (569,856 ) Seed processing and sales (11,329 ) (121,748 ) Corporate and administrative 270,944 531,321 $ (1,417,965 ) $ (116,337 ) Identifiable assets: Industrial wood products $ 827,085 $ 592,882 Lawn, garden, pet and other 25,781,691 27,893,913 Seed processing and sales 856,663 1,010,607 Corporate and administrative 6,508,391 6,659,285 $ 33,973,830 $ 36,156,687 Capital expenditures: Industrial wood products $ — $ — Lawn, garden, pet and other — — Seed processing and sales — — Corporate and administrative 301,681 908,401 $ 301,681 $ 908,401 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, 2023 and 2022: Sales in excess of ten percent of total sales 2023 2022 Sales $ 12,630,634 $ 13,029,830 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, 2023 and 2022: Schedule of sales by country 2023 2022 United States $ 19,929,828 $ 25,657,040 Canada 354,185 426,425 Europe 40,525 24,913 Mexico/Latin America/Caribbean 301,615 632,334 Asia/Pacific 94,768 237,763 All of the Company’s significant identifiable assets were located in the United States as of February 28, 2023 and 2022. |
RISKS
RISKS | 6 Months Ended |
Feb. 28, 2023 | |
Risks and Uncertainties [Abstract] | |
RISKS | 12. 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 February 28, 2023, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 67% 69% Volume of business The Company has concentrations in the volume of purchases it conducts with its suppliers. For the six months ended February 28, 2023, there were two suppliers that each accounted for 10% or greater of total purchases, and the aggregate purchases amounted to $ 9,895,011 14,000,039 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Feb. 28, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
LEGAL PROCEEDINGS | 13. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Certain cash payments for the six months ended February 28, 2023 and 2022 are summarized as follows: Schedule of Cash Flow, Supplemental Disclosures 2023 2022 Cash paid during the periods for: Interest $ 186,906 $ 50,896 Income taxes $ — $ — There were no non-cash investing or financing activities during the periods presented. 14. LEGAL PROCEEDINGS a) An association of District Attorneys in the State of California contacted the Company in regards to their investigation into the environmental labeling and marketing of dog waste bags. The District Attorneys claim that labeling certain dog waste bags, including the Company's, as biodegradable or compostable is misleading due to the lack of industrial composting facilities that accept dog waste. During the year ended August 31, 2022, the Company entered into a final settlement agreement which resulted in a $ 300,000 b) The Company was one of three named defendants in a Civil Action in Pennsylvania. The matter was an action seeking compensation for personal injuries and is based on theories of product liability as to the Company. The matter arises out of a dog allegedly escaping from a Jewett-Cameron kennel product and causing personal injuries to three individuals. The Company’s applicable liability insurer provided the defense covering the Company’s legal fees and costs. During the fiscal year ended August 31, 2022, the case was settled within the Company’s insurance policy limits with no admission of guilt by the Company, and there were no additional costs incurred. c) In fiscal 2021, the Company initiated arbitration against a former distributor asserting a breach of the distribution agreement and seeking damages. The arbitration hearing was held in December 2022. In February 2023, the arbitrator issued its decision and ruled in favor of the Company on all of its claims, and the monetary award is pending. The Company has requested damages and costs including attorneys’ fees, but the ultimate amount of the award is currently uncertain. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Feb. 28, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS The Company has drawn an additional $ 1,000,000 500,000 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Feb. 28, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These unaudited consolidated interim financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America (“US GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC"). |
Principles of consolidation | Principles of consolidation These consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, JC USA, JCC, 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 | Estimates The preparation of consolidated financial statements in conformity with US GAAP 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 Company’s 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 | 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 February 28, 2023, cash and cash equivalents were $ 268,389 484,463 |
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. |
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. |
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: Schedule of property plant and equipment useful life Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 |
Intangibles | Intangibles The Company’s 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 | 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 | 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 | 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 | 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, 2023 and 2022 are as follows: Schedule of Earnings Per Share, Basic and Diluted Three Month Periods ended February 28, Six Month Periods ended February 28, 2023 2022 2023 2022 Net (loss) income $ (972,038 ) $ 269,820 $ (1,045,798 ) $ (121,322 ) Basic weighted average number of common shares outstanding 3,498,899 3,492,842 3,497,543 3,491,969 Effect of dilutive securities Stock options — — — — Diluted weighted average number of common shares outstanding 3,498,899 3,492,842 3,497,543 3,491,969 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 | 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 | 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 Bank Indebtedness Accounts payable and accrued liabilities The estimated fair values of the Company's financial instruments as of February 28, 2023 and August 31, 2022 is as follows: Fair Value, Option, Quantitative Disclosures February 28, 2023 August 31, 2022 Carrying Fair Carrying Fair Amount Value Amount Value Cash and cash equivalents $ 268,389 $ 268,389 $ 484,463 $ 484,463 Accounts receivable, net of allowance 4,261,256 4,261,256 7,191,646 7,191,646 Accounts payable and accrued liabilities 2,401,675 2,401,675 3,422,086 3,422,086 Bank indebtedness 8,500,000 8,500,000 7,000,000 7,000,000 The following table presents information about the assets that are measured at fair value on a recurring basis as of February 28, 2023 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: Fair Value, Assets Measured on Recurring Basis February 28, 2023 Quoted Prices Significant Significant Assets: Cash and cash equivalents $ 268,389 $ 268,389 $ — $ — The fair values of cash are determined through market, observable and corroborated sources. |
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. |
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. |
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, 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. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Accounting Policies [Abstract] | |
Schedule of property plant and equipment useful life | Schedule of property plant and equipment useful life Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 |
Schedule of Earnings Per Share, Basic and Diluted | Schedule of Earnings Per Share, Basic and Diluted Three Month Periods ended February 28, Six Month Periods ended February 28, 2023 2022 2023 2022 Net (loss) income $ (972,038 ) $ 269,820 $ (1,045,798 ) $ (121,322 ) Basic weighted average number of common shares outstanding 3,498,899 3,492,842 3,497,543 3,491,969 Effect of dilutive securities Stock options — — — — Diluted weighted average number of common shares outstanding 3,498,899 3,492,842 3,497,543 3,491,969 |
Fair Value, Option, Quantitative Disclosures | Fair Value, Option, Quantitative Disclosures February 28, 2023 August 31, 2022 Carrying Fair Carrying Fair Amount Value Amount Value Cash and cash equivalents $ 268,389 $ 268,389 $ 484,463 $ 484,463 Accounts receivable, net of allowance 4,261,256 4,261,256 7,191,646 7,191,646 Accounts payable and accrued liabilities 2,401,675 2,401,675 3,422,086 3,422,086 Bank indebtedness 8,500,000 8,500,000 7,000,000 7,000,000 |
Fair Value, Assets Measured on Recurring Basis | Fair Value, Assets Measured on Recurring Basis February 28, 2023 Quoted Prices Significant Significant Assets: Cash and cash equivalents $ 268,389 $ 268,389 $ — $ — |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Schedule of Inventory, Current February 28, 2023 August 31, 2022 Wood products and metal products $ 22,355,455 $ 20,130,063 Agricultural seed products 724,192 502,250 Inventory Net $ 23,079,647 $ 20,632,313 |
Schedule of property, plant, and equipment | Schedule of property, plant, and equipment February 28, 2023 August 31, 2022 Office equipment $ 648,978 $ 636,501 Warehouse equipment 1,714,239 1,504,867 Buildings 6,172,975 6,168,080 Land 559,065 559,065 Property, Plant and Equipment, Gross 9,095,257 8,868,513 Accumulated depreciation (4,164,235 ) (4,040,093 ) Net book value $ 4,931,022 $ 4,828,420 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite- Lived Intangible Assets | Schedule of Finite- Lived Intangible Assets February 28, 2023 August 31, 2022 Intangible assets $ 50,695 $ 50,695 Accumulated amortization (17,873 ) (17,337 ) Net book value $ 32,822 $ 33,358 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Segment Reporting Information | Schedule of Segment Reporting Information 2023 2022 Sales to unaffiliated customers: Industrial wood products $ 939,600 $ 1,119,670 Lawn, garden, pet and other 18,871,381 24,203,362 Seed processing and sales 909,940 1,655,443 $ 20,720,921 $ 26,978,475 (Loss) income before income taxes: Industrial wood products $ (105,466 ) $ 43,946 Lawn, garden, pet and other (1,572,114 ) (569,856 ) Seed processing and sales (11,329 ) (121,748 ) Corporate and administrative 270,944 531,321 $ (1,417,965 ) $ (116,337 ) Identifiable assets: Industrial wood products $ 827,085 $ 592,882 Lawn, garden, pet and other 25,781,691 27,893,913 Seed processing and sales 856,663 1,010,607 Corporate and administrative 6,508,391 6,659,285 $ 33,973,830 $ 36,156,687 Capital expenditures: Industrial wood products $ — $ — Lawn, garden, pet and other — — Seed processing and sales — — Corporate and administrative 301,681 908,401 $ 301,681 $ 908,401 |
Sales in excess of ten percent of total sales | Sales in excess of ten percent of total sales 2023 2022 Sales $ 12,630,634 $ 13,029,830 |
Schedule of sales by country | Schedule of sales by country 2023 2022 United States $ 19,929,828 $ 25,657,040 Canada 354,185 426,425 Europe 40,525 24,913 Mexico/Latin America/Caribbean 301,615 632,334 Asia/Pacific 94,768 237,763 |
LEGAL PROCEEDINGS (Tables)
LEGAL PROCEEDINGS (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Schedule of Cash Flow, Supplemental Disclosures 2023 2022 Cash paid during the periods for: Interest $ 186,906 $ 50,896 Income taxes $ — $ — |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Feb. 28, 2023 | |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Minimum [Member] | Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 2 years |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 7 years |
Maximum [Member] | Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 10 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 30 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Accounting Policies [Abstract] | ||||
Net (loss) income | $ (972,038) | $ 269,820 | $ (1,045,798) | $ (121,322) |
Basic weighted average number of common shares outstanding | 3,498,899 | 3,492,842 | 3,497,543 | 3,491,969 |
Stock options | ||||
Diluted weighted average number of common shares outstanding | 3,498,899 | 3,492,842 | 3,497,543 | 3,491,969 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | $ 268,389 | $ 484,463 |
Accounts receivable, net of allowance | 0 | 0 |
Bank indebtedness | 8,500,000 | 7,000,000 |
Carrying Amount [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 268,389 | 484,463 |
Accounts receivable, net of allowance | 4,261,256 | 7,191,646 |
Accounts payable and accrued liabilities | 2,401,675 | 3,422,086 |
Bank indebtedness | 8,500,000 | 7,000,000 |
Fair Value [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 268,389 | 484,463 |
Accounts receivable, net of allowance | 4,261,256 | 7,191,646 |
Accounts payable and accrued liabilities | 2,401,675 | 3,422,086 |
Bank indebtedness | $ 8,500,000 | $ 7,000,000 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | $ 268,389 | $ 484,463 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 268,389 | |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 268,389 | $ 484,463 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Wood products and metal products | $ 22,355,455 | $ 20,130,063 |
Agricultural seed products | 724,192 | 502,250 |
Inventory Net | $ 23,079,647 | $ 20,632,313 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Office equipment | $ 648,978 | $ 636,501 |
Warehouse equipment | 1,714,239 | 1,504,867 |
Buildings | 6,172,975 | 6,168,080 |
Land | 559,065 | 559,065 |
Property, Plant and Equipment, Gross | 9,095,257 | 8,868,513 |
Accumulated depreciation | 4,164,235 | 4,040,093 |
Net book value | $ 4,931,022 | $ 4,828,420 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Feb. 28, 2023 | Aug. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets | $ 50,695 | $ 50,695 |
Accumulated amortization | (17,873) | (17,337) |
Net book value | $ 32,822 | $ 33,358 |
BANK INDEBTEDNESS (Details Narr
BANK INDEBTEDNESS (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2022 | Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax liability | $ 24,998 | $ 397,990 |
Line of credit | 10,000,000 | |
Balance owed on bank line of credit | $ 7,000,000 | $ 8,500,000 |
Interest rate | 6.12% |
RESTRICTED SHARE PLAN (Details
RESTRICTED SHARE PLAN (Details Narrative) - USD ($) | 6 Months Ended | ||
Feb. 28, 2023 | Aug. 31, 2022 | Feb. 28, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Available to be issued | 17,074 | ||
Number of value issued for services | $ 23,303 | $ 17,452 | $ 39,386 |
Restricted Share Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares issued for services | 3,557 | 3,681 | |
Number of value issued for services | $ 23,303 | $ 39,386 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Sales | $ 8,143,421 | $ 14,060,751 | $ 20,720,921 | $ 26,978,475 |
(Loss) income before income taxes | (1,324,615) | 368,120 | (1,417,965) | (116,337) |
Identifiable assets | 33,973,830 | 36,156,687 | 33,973,830 | 36,156,687 |
Capital expenditures | 301,681 | 908,401 | ||
Industrial Wood Products [Member] | ||||
Sales | 939,600 | 1,119,670 | ||
(Loss) income before income taxes | (105,466) | 43,946 | ||
Identifiable assets | 827,085 | 592,882 | 827,085 | 592,882 |
Capital expenditures | ||||
Law Garden Pet And Other [Member] | ||||
Sales | 18,871,381 | 24,203,362 | ||
(Loss) income before income taxes | (1,572,114) | (569,856) | ||
Identifiable assets | 25,781,691 | 27,893,913 | 25,781,691 | 27,893,913 |
Capital expenditures | ||||
Seed Processing And Sales [Member] | ||||
Sales | 909,940 | 1,655,443 | ||
(Loss) income before income taxes | (11,329) | (121,748) | ||
Identifiable assets | 856,663 | 1,010,607 | 856,663 | 1,010,607 |
Capital expenditures | ||||
Corporate And Administrative [Member] | ||||
(Loss) income before income taxes | 270,944 | 531,321 | ||
Identifiable assets | $ 6,508,391 | $ 6,659,285 | 6,508,391 | 6,659,285 |
Capital expenditures | $ 301,681 | $ 908,401 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - USD ($) | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Retirement Benefits [Abstract] | ||
Sales to customers in excess of 10% of total sales | $ 12,630,634 | $ 13,029,830 |
SEGMENT INFORMATION (Details 2)
SEGMENT INFORMATION (Details 2) - USD ($) | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Retirement Benefits [Abstract] | ||
United States | $ 19,929,828 | $ 25,657,040 |
Canada | 354,185 | 426,425 |
Europe | 40,525 | 24,913 |
Mexico/Latin America/Caribbean | 301,615 | 632,334 |
Asia/Pacific | $ 94,768 | $ 237,763 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) - USD ($) | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Retirement Benefits [Abstract] | ||
Payment for Pension Benefits | $ 276,780 | $ 288,216 |
RISKS (Details Narrative)
RISKS (Details Narrative) - USD ($) | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Risks and Uncertainties [Abstract] | ||
Concentration Risk, Customer | 67% | 69% |
Concentration, volume of purchases | $ 9,895,011 | $ 14,000,039 |
SUPPLEMENTAL DISCLOSURE WITH RE
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Details) - USD ($) | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest | $ 186,906 | $ 50,896 |
Income taxes | ||
Final settlement | $ 300,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Feb. 28, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Line of credit | $ 500,000 |
Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit | $ 1,000,000 |