Chicago Rivet & Machine (CVR) 10-K 20 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Document and Entity Information:
Entity Registrant Name	CHICAGO RIVET & MACHINE CO.
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Trading Symbol	cvr
Amendment Flag	false
Entity Central Index Key	19,871
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	966,132
Entity Public Float		$ 21,211,146
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)		Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents		$ 353,475	$ 800,894
Certificates of deposit		8,059,000	6,565,000
Accounts receivable, net	[1]	5,323,519	5,438,332
Inventories, net		4,537,693	4,538,212
Prepaid income taxes		56,112	273,112
Other current assets		423,952	383,953
Total current assets		18,753,751	17,999,503
Property, plant and equipment, net		12,450,558	11,698,443
Total assets		31,204,309	29,697,946
Current Liabilities:
Accounts payable		703,467	768,111
Accrued wages and salaries		690,526	611,484
Other accrued expenses		604,174	465,662
Unearned revenue and customer deposits		286,133	467,189
Total current liabilities		2,284,300	2,312,446
Deferred income taxes, net		1,028,084	894,084
Total liabilities		3,312,384	3,206,530
Shareholders' Equity:
Preferred stock	[2]	0	0
Common stock	[3]	1,138,096	1,138,096
Additional paid-in capital		447,134	447,134
Retained earnings		30,228,793	28,828,284
Less: Treasury stock	[4]	3,922,098	3,922,098
Total shareholders' equity		27,891,925	26,491,416
Total liabilities and shareholders' equity		$ 31,204,309	$ 29,697,946
[1]	Net of allowance of $150,000.
[2]	No par value, 500,000 shares authorized, none outstanding.
[3]	$1.00 par value, 4,000,000 shares authorized, 1,138,096 shares issued, 966,132 shares outstanding.
[4]	At cost, 171,964 shares.

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Income
Net sales	$ 37,022,378	$ 36,174,604
Cost of goods sold	27,980,217	28,279,125
Gross profit	9,042,161	7,895,479
Selling and administrative expenses	5,559,436	5,408,281
Operating profit	3,482,725	2,487,198
Other income	65,255	44,443
Income before provision for income taxes	3,547,980	2,531,641
Provision for income taxes	1,191,000	844,000
Net income	$ 2,356,980	$ 1,687,641
Net income per share	$ 2.44	$ 1.75

Consolidated Statements of Reta

Consolidated Statements of Retained Earnings - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Retained Earnings
Retained earnings at beginning of year	$ 28,828,284	$ 28,077,791
Net income	2,356,980	1,687,641
Cash dividends paid, $.99 and $.97 per share in 2016 and 2015, respectively	(956,471)	(937,148)
Retained earnings at end of year	$ 30,228,793	$ 28,828,284

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 2,356,980	$ 1,687,641
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,242,357	1,261,446
Loss on the sale of equipment	29,658	17,504
Deferred income taxes	134,000	233,000
Changes in operating assets and liabilities:
Accounts receivable, net	114,813	231,322
Inventories, net	519	624,262
Other current assets	177,001	(134,996)
Accounts payable	(64,644)	(178,703)
Accrued wages and salaries	79,042	6,455
Other accrued expenses	138,512	(55,061)
Unearned revenue and customer deposits	(181,056)	397,323
Net cash provided by operating activities	4,027,182	4,090,193
Cash flows from investing activities:
Capital expenditures	(2,027,860)	(2,081,272)
Proceeds from the sale of equipment	3,730	4,869
Proceeds from certificates of deposit	6,225,000	7,303,000
Purchases of certificates of deposit	(7,719,000)	(7,810,000)
Net cash used in investing activities	(3,518,130)	(2,583,403)
Cash flows from financing activities:
Cash dividends paid	(956,471)	(937,148)
Net cash used in financing activities	(956,471)	(937,148)
Net increase (decrease) in cash and cash equivalents	(447,419)	569,642
Cash and cash equivalents at beginning of year	800,894	231,252
Cash and cash equivalents at end of year	353,475	800,894
Net cash paid for income taxes	840,000	710,456
Supplemental schedule of non-cash investing activities:
Capital expenditures in accounts payable	$ 0	$ 22,995

1 - Nature of Business and Sign

1 - Nature of Business and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Notes
1 - Nature of Business and Significant Accounting Policies	1-Nature of Business and Significant Accounting Policies Nature of Business- A summary of the Company’s significant accounting policies follows: Principles of Consolidation- Revenue Recognition- Credit Risk- Cash and Cash Equivalents and Certificates of Deposit- Fair Value of Financial Instruments- Inventories- Property, Plant and Equipment- Asset Category Estimated Useful Life Land improvements .. 15 to 25 years Buildings and improvements 10 to 35 years Machinery and equipment 7 to 15 years Capitalized software costs 3 to 5 years Other equipment 3 to 15 years The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. There were no triggering events requiring assessment of impairment as of December 31, 2016 and 2015. When properties are retired or sold, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss on disposition is recognized in current operations. Maintenance, repairs and minor betterments that do not improve the related asset or extend its useful life are charged to operations as incurred. Income Taxes- The Company applies a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. In the first step of the two-step process, the Company evaluates the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. In the second step, the Company measures the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2016 and 2015, the Company determined that there are no uncertain tax positions with a more than 50% likelihood of being realized upon settlement. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no such expenses in 2016 or 2015. The Company’s federal income tax returns for the 2013 through 2015 tax years are subject to examination by the Internal Revenue Service (“IRS”). While it may be possible that a reduction could occur with respect to the Company’s unrecognized tax benefits as an outcome of an IRS examination, management does not anticipate any adjustments that would result in a material change to the results of operations or financial condition of the Company. No statutes have been extended on any of the Company’s federal income tax filings. The statute of limitations on the Company’s 2013, 2014 and 2015 federal income tax returns will expire on September 15, 2017, 2018 and 2019, respectively. The Company’s state income tax returns for the 2013 through 2015 tax years are subject to examination by various state authorities with the latest closing period on October 31, 2019. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended. Segment Information- The Company reports segment information based on the internal structure and reporting of the Company’s operations. Net Income Per Share- Use of Estimates- Reclassifications- Recent Accounting Pronouncements- In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (”ASU”) No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU includes specific guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company does not expect the adoption of this ASU to have a significant impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU will require lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those annual periods. The impact of adopting this ASU is not expected to be significant based on current lease agreements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which updated ASU 2014-09. ASU 2016-12 clarifies certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted. ASU 2014-09 and ASU 2016-12 are effective for annual reporting periods after December 15, 2017 and interim periods within those reporting periods, and are to be applied using either the modified retrospective or full retrospective transition methods, with early adoption permitted. The Company has reviewed its revenue sources and contracts within the scope of the ASU and based on its evaluation to date, does not anticipate this standard will have a material impact on its consolidated financial statements. The Company does not plan to early adopt the ASU and has not yet determined the transition method.

2 - Balance Sheet Details

2 - Balance Sheet Details	12 Months Ended
	Dec. 31, 2016
Notes
2 - Balance Sheet Details	2-Balance Sheet Details December 31, 2016 December 31, 2015 Inventories: $ 1,675,143 $ 1,923,932 1,684,321 1,606,389 1,740,229 1,584,891 5,099,693 5,115,212 (562,000) (577,000) $ 4,537,693 $ 4,538,212 December 31, 2016 December 31, 2015 Property, Plant and Equipment, net: Land and improvements . $ 1,424,689 $ 1,281,982 Buildings and improvements . 7,908,780 7,271,006 Machinery and equipment . 32,559,468 32,020,937 Capitalized software and other . 1,312,887 1,274,592 43,205,824 41,848,517 Accumulated depreciation .. (30,755,266) (30,150,074) $12,450,558 $ 11,698,443 December 31, 2016 December 31, 2015 Other Accrued Expenses: Profit sharing plan contribution . $ 384,275 $ 273,238 Property taxes . 92,044 92,526 All other items . 127,855 99,898 $ 604,174 $ 465,662 December 31, 2016 December 31, 2015 Allowance for Doubtful Accounts: Balance at beginning of year . $ 150,000 $ 150,000 Charges to statement of income ... 1,566 3,824 Write-offs ... (1,566) (3,824) Balance at end of year $ 150,000 $ 150,000 December 31, 2016 December 31, 2015 Inventory Valuation Reserves: Balance at beginning of year . $ 577,000 $ 618,000 Charges to statement of income ... 80,793 77,577 Write-offs ... (95,793) (118,577) Balance at end of year $ 562,000 $ 577,000

3 - Income Taxes

3 - Income Taxes	12 Months Ended
	Dec. 31, 2016
Notes
3 - Income Taxes	3-Income Taxes- 2016 2015 Current: Federal .. $ 1,005,000 $ 576,000 State 52,000 35,000 Deferred 134,000 233,000 $ 1,191,000 $ 844,000 The following is a reconciliation of the statutory federal income tax rate to the actual effective tax rate: 2016 2015 Amount % Amount % Expected tax at U.S. statutory rate $ 1,206 ,000 34. 0 $ 861,000 34.0 Permanent differences (49,000) (1.4) (40,000) (1.6) State taxes, net of federal benefit . 34,000 1.0 23,000 0.9 Income tax expense $ 1,191,000 33.6 $ 844,000 33.3 The Company’s effective tax rates were lower than the U.S. federal statutory rate in 2016 and 2015 primarily due to the Domestic Production Activities Deduction allowed under Internal Revenue Code Section 199. The deferred tax liabilities and assets consist of the following: 2016 2015 Depreciation and amortization .. $ (1,432,275) $ (1,319,275) Inventory .. 240,647 263,723 Accrued vacation 110,246 109,193 Allowance for doubtful accounts .. 53,625 53,625 Other, net . (327) (1,350) $ (1,028,084) $ (894,084) Valuation allowances related to deferred taxes are recorded based on the “more likely than not” realization criteria. The Company reviews the need for a valuation allowance on a quarterly basis for each of its tax jurisdictions. A deferred tax valuation allowance was not required at December 31, 2016 or 2015.

4 - Profit Sharing Plan

4 - Profit Sharing Plan	12 Months Ended
	Dec. 31, 2016
Notes
4 - Profit Sharing Plan	4-Profit Sharing Plan-

5 - Other Income

5 - Other Income	12 Months Ended
	Dec. 31, 2016
Notes
5 - Other Income	5-Other Income- 2016 2015 Interest income . $ 41,880 $ 26,544 Other .. 23,375 17,899 $ 65,255 $ 44,443

6 - Segment Information

6 - Segment Information	12 Months Ended
	Dec. 31, 2016
Notes
6 - Segment Information	6-Segment Information- H & L Tool and the parent company’s fastener operations, includes rivets, cold-formed fasteners and parts and screw machine products. The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines. Information by segment is as follows: Fastener Assembly Equipment Other Consolidated Year Ended December 31, 2016: Net Sales $ 33,126,599 $ 3,895,779 $ 0 $ 37,022,378 Depreciation ... 1,078,281 93,876 70,200 1,242,357 Segment operating profit 4,689,749 1,350,277 0 6,040,026 Selling and administrative expenses .. 0 0 (2,557,301) (2,557,301) Other income .. 0 0 65,255 65,255 Income before income taxes 3,547,980 Capital expenditures . 1,683,953 189,568 154,339 2,027,860 Segment assets: Accounts receivable, net ... 5,036,251 287,268 0 5,323,519 Inventories, net ... 3,639,940 897,753 0 4,537,693 Property, plant and equipment, net . 10,282,847 1,564,702 603,009 12,450,558 Other assets 0 0 8,892,539 8,892,539 31,204,309 Year Ended December 31, 2015: Net sales . $ 32,590,015 $ 3,584,589 $ 0 $ 36,174,604 Depreciation ... 1,101,210 80,191 80,045 1,261,446 Segment operating profit 3,692,805 981,326 0 4,674,131 Selling and administrative expenses .. 0 0 (2,186,933) (2,186,933) Other income .. 0 0 44,443 44,443 Income before income taxes 2,531,641 Capital expenditures . 1,545,533 455,139 103,595 2,104,267 Segment assets: Accounts receivable, net 5,084,535 353,797 0 5,438,332 Inventories, net ... 3,549,655 988,557 0 4,538,212 Property, plant and equipment, net . 9,732,333 1,469,010 497,100 11,698,443 Other assets 0 0 8,022,959 8,022,959 29,697,946 The Company does not allocate certain selling and administrative expenses for internal reporting, thus, no allocation was made for these expenses for segment disclosure purposes. Segment assets reported internally are limited to accounts receivable, inventory and long-lived assets. Certain long-lived assets of one plant location are allocated between the two segments based on estimated plant utilization, as this plant serves both fastener and assembly equipment activities. Other assets are not allocated to segments internally and to do so would be impracticable. Sales to two customers in the fastener segment accounted for 19 and 21 percent and 12 and 12 percent of consolidated revenues during 2016 and 2015, respectively. The accounts receivable balances for these customers accounted for 22 and 26 percent of consolidated accounts receivable for the larger customer and 12 and 13 percent for the other customer as of December 31, 2016 and 2015, respectively.

7 - Commitments and Contingenci

7 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Notes
7 - Commitments and Contingencies	7-—Commitments and Contingencies-— The Company is, from time to time involved in litigation, including environmental claims, in the normal course of business. While it is not possible at this time to establish the ultimate amount of liability with respect to contingent liabilities, including those related to legal proceedings, management is of the opinion that the aggregate amount of any such liabilities, for which provision has not been made, will not have a material adverse effect on the Company's financial position.

8 - Subsequent Events

8 - Subsequent Events	12 Months Ended
	Dec. 31, 2016
Notes
8 - Subsequent Events	8 -— Subsequent Events -—

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Principles of Consolidation	Principles of Consolidation-
Revenue Recognition	Revenue Recognition-
Credit Risk	Credit Risk-
Cash and Cash Equivalents and Certificates of Deposit	Cash and Cash Equivalents and Certificates of Deposit-
Fair Value of Financial Instruments	Fair Value of Financial Instruments-
Inventories	Inventories-
Property, Plant and Equipment	Property, Plant and Equipment- Asset Category Estimated Useful Life Land improvements .. 15 to 25 years Buildings and improvements 10 to 35 years Machinery and equipment 7 to 15 years Capitalized software costs 3 to 5 years Other equipment 3 to 15 years The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. There were no triggering events requiring assessment of impairment as of December 31, 2016 and 2015. When properties are retired or sold, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss on disposition is recognized in current operations. Maintenance, repairs and minor betterments that do not improve the related asset or extend its useful life are charged to operations as incurred.
Income Taxes	Income Taxes- The Company applies a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. In the first step of the two-step process, the Company evaluates the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. In the second step, the Company measures the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2016 and 2015, the Company determined that there are no uncertain tax positions with a more than 50% likelihood of being realized upon settlement. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no such expenses in 2016 or 2015. The Company’s federal income tax returns for the 2013 through 2015 tax years are subject to examination by the Internal Revenue Service (“IRS”). While it may be possible that a reduction could occur with respect to the Company’s unrecognized tax benefits as an outcome of an IRS examination, management does not anticipate any adjustments that would result in a material change to the results of operations or financial condition of the Company. No statutes have been extended on any of the Company’s federal income tax filings. The statute of limitations on the Company’s 2013, 2014 and 2015 federal income tax returns will expire on September 15, 2017, 2018 and 2019, respectively. The Company’s state income tax returns for the 2013 through 2015 tax years are subject to examination by various state authorities with the latest closing period on October 31, 2019. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.
Segment Information	Segment Information- The Company reports segment information based on the internal structure and reporting of the Company’s operations.
Net Income Per Share	Net Income Per Share-
Use of Estimates	Use of Estimates-
Reclassifications	Reclassifications-
Recent Accounting Pronouncements	Recent Accounting Pronouncements- In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (”ASU”) No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU includes specific guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company does not expect the adoption of this ASU to have a significant impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU will require lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those annual periods. The impact of adopting this ASU is not expected to be significant based on current lease agreements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which updated ASU 2014-09. ASU 2016-12 clarifies certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted. ASU 2014-09 and ASU 2016-12 are effective for annual reporting periods after December 15, 2017 and interim periods within those reporting periods, and are to be applied using either the modified retrospective or full retrospective transition methods, with early adoption permitted. The Company has reviewed its revenue sources and contracts within the scope of the ASU and based on its evaluation to date, does not anticipate this standard will have a material impact on its consolidated financial statements. The Company does not plan to early adopt the ASU and has not yet determined the transition method.

Balance Sheet Details - Invento

Balance Sheet Details - Inventory (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Balance Sheet Details - Inventory	December 31, 2016 December 31, 2015 Inventories: $ 1,675,143 $ 1,923,932 1,684,321 1,606,389 1,740,229 1,584,891 5,099,693 5,115,212 (562,000) (577,000) $ 4,537,693 $ 4,538,212

Balance Sheet Details - Propert

Balance Sheet Details - Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Balance Sheet Details - Property, Plant and Equipment	December 31, 2016 December 31, 2015 Property, Plant and Equipment, net: Land and improvements . $ 1,424,689 $ 1,281,982 Buildings and improvements . 7,908,780 7,271,006 Machinery and equipment . 32,559,468 32,020,937 Capitalized software and other . 1,312,887 1,274,592 43,205,824 41,848,517 Accumulated depreciation .. (30,755,266) (30,150,074) $12,450,558 $ 11,698,443

Balance Sheet Details - Other A

Balance Sheet Details - Other Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Balance Sheet Details - Other Accrued Expenses	December 31, 2016 December 31, 2015 Other Accrued Expenses: Profit sharing plan contribution . $ 384,275 $ 273,238 Property taxes . 92,044 92,526 All other items . 127,855 99,898 $ 604,174 $ 465,662

Schedule of Valuation and Quali

Schedule of Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Valuation and Qualifying Accounts	December 31, 2016 December 31, 2015 Allowance for Doubtful Accounts: Balance at beginning of year . $ 150,000 $ 150,000 Charges to statement of income ... 1,566 3,824 Write-offs ... (1,566) (3,824) Balance at end of year $ 150,000 $ 150,000 December 31, 2016 December 31, 2015 Inventory Valuation Reserves: Balance at beginning of year . $ 577,000 $ 618,000 Charges to statement of income ... 80,793 77,577 Write-offs ... (95,793) (118,577) Balance at end of year $ 562,000 $ 577,000

Provision for Income Tax Expens

Provision for Income Tax Expense (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Provision for Income Tax Expense	2016 2015 Current: Federal .. $ 1,005,000 $ 576,000 State 52,000 35,000 Deferred 134,000 233,000 $ 1,191,000 $ 844,000

Schedule of Effective Income Ta

Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	The following is a reconciliation of the statutory federal income tax rate to the actual effective tax rate: 2016 2015 Amount % Amount % Expected tax at U.S. statutory rate $ 1,206 ,000 34. 0 $ 861,000 34.0 Permanent differences (49,000) (1.4) (40,000) (1.6) State taxes, net of federal benefit . 34,000 1.0 23,000 0.9 Income tax expense $ 1,191,000 33.6 $ 844,000 33.3

Schedule of Deferred Tax Assets

Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	2016 2015 Depreciation and amortization .. $ (1,432,275) $ (1,319,275) Inventory .. 240,647 263,723 Accrued vacation 110,246 109,193 Allowance for doubtful accounts .. 53,625 53,625 Other, net . (327) (1,350) $ (1,028,084) $ (894,084)

Other Income (Tables)

Other Income (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Other Income	2016 2015 Interest income . $ 41,880 $ 26,544 Other .. 23,375 17,899 $ 65,255 $ 44,443

Schedule of Segment Reporting I

Schedule of Segment Reporting Information (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Segment Reporting Information	Fastener Assembly Equipment Other Consolidated Year Ended December 31, 2016: Net Sales $ 33,126,599 $ 3,895,779 $ 0 $ 37,022,378 Depreciation ... 1,078,281 93,876 70,200 1,242,357 Segment operating profit 4,689,749 1,350,277 0 6,040,026 Selling and administrative expenses .. 0 0 (2,557,301) (2,557,301) Other income .. 0 0 65,255 65,255 Income before income taxes 3,547,980 Capital expenditures . 1,683,953 189,568 154,339 2,027,860 Segment assets: Accounts receivable, net ... 5,036,251 287,268 0 5,323,519 Inventories, net ... 3,639,940 897,753 0 4,537,693 Property, plant and equipment, net . 10,282,847 1,564,702 603,009 12,450,558 Other assets 0 0 8,892,539 8,892,539 31,204,309 Year Ended December 31, 2015: Net sales . $ 32,590,015 $ 3,584,589 $ 0 $ 36,174,604 Depreciation ... 1,101,210 80,191 80,045 1,261,446 Segment operating profit 3,692,805 981,326 0 4,674,131 Selling and administrative expenses .. 0 0 (2,186,933) (2,186,933) Other income .. 0 0 44,443 44,443 Income before income taxes 2,531,641 Capital expenditures . 1,545,533 455,139 103,595 2,104,267 Segment assets: Accounts receivable, net 5,084,535 353,797 0 5,438,332 Inventories, net ... 3,549,655 988,557 0 4,538,212 Property, plant and equipment, net . 9,732,333 1,469,010 497,100 11,698,443 Other assets 0 0 8,022,959 8,022,959 29,697,946

Estimated Useful Lives by Asset

Estimated Useful Lives by Asset Category (Details)	12 Months Ended
	Dec. 31, 2016
Land Improvements | Minimum
Property, Plant and Equipment, Useful Life	15 years
Land Improvements | Maximum
Property, Plant and Equipment, Useful Life	25 years
Building Improvements | Minimum
Property, Plant and Equipment, Useful Life	10 years
Building Improvements | Maximum
Property, Plant and Equipment, Useful Life	35 years
Machinery and Equipment | Minimum
Property, Plant and Equipment, Useful Life	7 years
Machinery and Equipment | Maximum
Property, Plant and Equipment, Useful Life	15 years
Software and Software Development Costs | Minimum
Property, Plant and Equipment, Useful Life	3 years
Software and Software Development Costs | Maximum
Property, Plant and Equipment, Useful Life	5 years
Other Capitalized Property Plant and Equipment | Minimum
Property, Plant and Equipment, Useful Life	3 years
Other Capitalized Property Plant and Equipment | Maximum
Property, Plant and Equipment, Useful Life	15 years

Uncertain Tax Positions and Unr

Uncertain Tax Positions and Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Liability for Uncertain Tax Positions	$ 0	$ 0
Unrecognized Tax Benefits	$ 0	$ 0

Weighted Avg. Nunber of Shares

Weighted Avg. Nunber of Shares Outstanding (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Weighted Average Common Shares Outstanding	966,132	966,132

Balance Sheet Details - Inven27

Balance Sheet Details - Inventory (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Raw Materials	$ 1,675,143	$ 1,923,932
Work in Process	1,684,321	1,606,389
Finished Goods	1,740,229	1,584,891
Valuation reserves	(562,000)	(577,000)
Inventories, net	$ 4,537,693	$ 4,538,212

Balance Sheet Details - Prope28

Balance Sheet Details - Property, Plant and Equipment (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Land and improvements	$ 1,424,689	$ 1,281,982
Buildings and improvements	7,908,780	7,271,006
Machinery and equipment	32,559,468	32,020,937
Capitalized software and other	1,312,887	1,274,592
Less Accumulated depreciation	(30,755,266)	(30,150,074)
Property, Plant and Equipment, net	$ 12,450,558	$ 11,698,443

Balance Sheet Details - Other29

Balance Sheet Details - Other Accrued Expenses (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Profit sharing plan contribution	$ 384,275	$ 273,238
Property taxes	92,044	92,526
All other items	127,855	99,898
Other accrued expenses	$ 604,174	$ 465,662

Schedule of Valuation and Qua30

Schedule of Valuation and Qualifying Accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts
Balance at beginning of year	$ 150,000	$ 150,000
Charges to statement of income	1,566	3,824
Write-offs	(1,566)	(3,824)
Balance at end of year	150,000	150,000
Inventory Valuation Reserve
Balance at beginning of year	577,000	618,000
Charges to statement of income	80,793	77,577
Write-offs	(95,793)	(118,577)
Balance at end of year	$ 562,000	$ 577,000

Provision for Income Tax Expe31

Provision for Income Tax Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Provision for federal income tax expense, current	$ 1,005,000	$ 576,000
Provision for state income tax, current	52,000	35,000
Provision for income tax expense, deferred	134,000	233,000
Provision for income taxes	$ 1,191,000	$ 844,000

Schedule of Effective Income 32

Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Expected tax at U.S. statutory rate	$ 1,206,000	$ 861,000
Expected tax at U.S. statutory rate, %	34.00%	34.00%
Permanent differences	$ (49,000)	$ (40,000)
Permanent differences, %	(1.40%)	(1.60%)
State taxes, net of federal benefit	$ 34,000	$ 23,000
State taxes, net of federal benefit, %	1.00%	0.90%
Income tax expense	$ 1,191,000	$ 844,000
Income tax expense, %	33.60%	33.30%

Schedule of Deferred Tax Asse33

Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Depreciation and amortization	$ (1,432,275)	$ (1,319,275)
Inventory	240,647	263,723
Accrued vacation	110,246	109,193
Allowance for doubtful accounts	53,625	53,625
Other, net	(327)	(1,350)
Deferred Tax Assets and Liabilities	$ (1,028,084)	$ (894,084)

Deferred Tax Valuation Allowanc

Deferred Tax Valuation Allowance (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Deferred tax assets valuation allowance	$ 0	$ 0

Profit Sharing Plan (Details)

Profit Sharing Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 384,000	$ 273,000

Other Income (Details)

Other Income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Interest income	$ 41,880	$ 26,544
Other nonoperating income	23,375	17,899
Other income	$ 65,255	$ 44,443

Schedule of Segment Reporting37

Schedule of Segment Reporting Information (Details) - USD ($)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Net sales		$ 37,022,378	$ 36,174,604
Depreciation and amortization		1,242,357	1,261,446
Segment operating profit		6,040,026	4,674,131
Selling and administrative expenses		(2,557,301)	(2,186,933)
Other income		65,255	44,443
Capital expenditures		2,027,860	2,104,267
Accounts receivable, net	[1]	5,323,519	5,438,332
Inventories, net		4,537,693	4,538,212
Property, plant and equipment, net		12,450,558	11,698,443
Other assets		8,892,539	8,022,959
Fastener
Net sales		33,126,599	32,590,015
Depreciation and amortization		1,078,281	1,101,210
Segment operating profit		4,689,749	3,692,805
Selling and administrative expenses		0	0
Other income		0	0
Capital expenditures		1,683,953	1,545,533
Accounts receivable, net		5,036,251	5,084,535
Inventories, net		3,639,940	3,549,655
Property, plant and equipment, net		10,282,847	9,732,333
Other assets		0	0
Assembly Equipment
Net sales		3,895,779	3,584,589
Depreciation and amortization		93,876	80,191
Segment operating profit		1,350,277	981,326
Selling and administrative expenses		0	0
Other income		0	0
Capital expenditures		189,568	455,139
Accounts receivable, net		287,268	353,797
Inventories, net		897,753	988,557
Property, plant and equipment, net		1,564,702	1,469,010
Other assets		0	0
Unallocated Corporate
Net sales		0	0
Depreciation and amortization		70,200	80,045
Segment operating profit		0	0
Selling and administrative expenses		(2,557,301)	(2,186,933)
Other income		65,255	44,443
Capital expenditures		154,339	103,595
Accounts receivable, net		0	0
Inventories, net		0	0
Property, plant and equipment, net		603,009	497,100
Other assets		$ 8,892,539	$ 8,022,959
[1]	Net of allowance of $150,000.

Summary of Percentage of Revenu

Summary of Percentage of Revenues and A/R from Major Customers (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
TIGroupAutomotiveSystemsMember
Percentage of revenues from major customers	19.00%	21.00%
Percentage of Accounts Receivable balances	22	26
FisherCompanyMember
Percentage of revenues from major customers	12.00%	12.00%
Percentage of Accounts Receivable balances	12	13

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Rent Expense	$ 26,000	$ 26,000

Subsequent Events (Details)

Subsequent Events (Details)	12 Months Ended
	Dec. 31, 2016USD ($)$ / shares
Details
Dividend declaration date	Feb. 20, 2017
Dividends per share | $ / shares	$ 0.55
Dividends payable amount, total | $	$ 531,372
Dividends Payable, Date to be Paid	Mar. 20, 2017
Dividends Payable, Date of Record	Mar. 3, 2017