Chicago Rivet & Machine (CVR) 10-Q 9 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Details
Registrant CIK	0000019871
Fiscal Year End	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	000-01227
Entity Registrant Name	CHICAGO RIVET & MACHINE CO
Entity Incorporation, State or Country Code	IL
Entity Tax Identification Number	36-0904920
Entity Address, Address Line One	901 Frontenac Road
Entity Address, City or Town	Naperville
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60563
City Area Code	630
Local Phone Number	357-8500
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	CVR
Security Exchange Name	NYSEAMER
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		966,132
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 2,875,282	$ 2,567,731
Certificates of deposit	2,741,000	4,733,000
Accounts receivable - Less allowances of $170,000	6,074,743	5,163,450
Inventories, net	7,745,270	5,153,294
Prepaid income taxes	20,440	85,940
Other current assets	457,162	383,772
Total current assets	19,913,897	18,087,187
Property, Plant and Equipment:
Land and improvements	1,778,819	1,636,749
Buildings and improvements	8,456,983	8,440,738
Production equipment and other	36,624,248	36,333,550
Property, Plant and Equipment, Gross	46,860,050	46,411,037
Less accumulated depreciation	34,141,898	33,260,153
Net property, plant and equipment	12,718,152	13,150,884
Total assets	32,632,049	31,238,071
Current Liabilities:
Accounts payable	1,176,565	466,424
Accrued wages and salaries	871,804	482,008
Other accrued expenses	357,321	322,968
Unearned revenue and customer deposits	208,539	249,498
Total current liabilities	2,614,229	1,520,898
Deferred income taxes	917,084	1,011,084
Total liabilities	3,531,313	2,531,982
Shareholders' Equity:
Preferred stock, no par value, 500,000 shares authorized: none outstanding	0	0
Common stock, $1.00 par value, 4,000,000 shares authorized, 1,138,096 shares issued; 966,132 shares outstanding	1,138,096	1,138,096
Additional paid-in capital	447,134	447,134
Retained earnings	31,437,604	31,042,957
Treasury stock, 171,964 shares at cost	(3,922,098)	(3,922,098)
Total shareholders' equity	29,100,736	28,706,089
Total liabilities and shareholders' equity	$ 32,632,049	$ 31,238,071

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Details
Accounts Receivable, Allowance for Credit Loss, Current	$ 170,000	$ 170,000
Preferred Stock, Par or Stated Value Per Share	$ 0	$ 0
Preferred Stock, Shares Authorized	500,000	500,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 1	$ 1
Common Stock, Shares Authorized	4,000,000	4,000,000
Common Stock, Shares, Issued	1,138,096	1,138,096
Common Stock, Shares, Outstanding	966,132	966,132

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Condensed Consolidated Statements of Income (Unaudited)
Net sales	$ 8,555,731	$ 7,645,259	$ 26,225,070	$ 19,325,234
Cost of goods sold	7,069,700	6,004,766	21,027,525	16,304,164
Gross profit	1,486,031	1,640,493	5,197,545	3,021,070
Selling and administrative expenses	1,290,046	1,258,995	3,936,995	3,758,752
Operating profit (loss)	195,985	381,498	1,260,550	(737,682)
Other income	11,674	32,637	43,744	122,869
Income (loss) before income taxes	207,659	414,135	1,304,294	(614,813)
Provision (benefit) for income taxes	35,000	105,000	272,000	(201,000)
Net income (loss)	$ 172,659	$ 309,135	$ 1,032,294	$ (413,813)
Per share data, basic and diluted:
Net income (loss) per share	$ 0.18	$ 0.32	$ 1.07	$ (0.43)
Average common shares outstanding	966,132	966,132	966,132	966,132
Cash dividends declared per share	$ 0.22	$ 0.10	$ 0.66	$ 0.42

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock
Beginning Balance at Dec. 31, 2019	$ 29,158,027	$ 0	$ 1,138,096	$ 447,134	$ 31,494,895	$ (3,922,098)
Common Stock Shares at Dec. 31, 2019			966,132
Treasury Stock Shares at Dec. 31, 2019						171,964
Net income (loss)	56,568				56,568
Dividends declared	(212,549)				(212,549)
Ending Balance at Mar. 31, 2020	29,002,046	0	$ 1,138,096	447,134	31,338,914	$ (3,922,098)
Common Stock Shares at Mar. 31, 2020			966,132
Treasury Stock Shares at Mar. 31, 2020						171,964
Beginning Balance at Dec. 31, 2019	29,158,027	0	$ 1,138,096	447,134	31,494,895	$ (3,922,098)
Common Stock Shares at Dec. 31, 2019			966,132
Treasury Stock Shares at Dec. 31, 2019						171,964
Net income (loss)	(413,813)
Ending Balance at Sep. 30, 2020	28,338,439	0	$ 1,138,096	447,134	30,675,307	$ (3,922,098)
Common Stock Shares at Sep. 30, 2020			966,132
Treasury Stock Shares at Sep. 30, 2020						171,964
Beginning Balance at Mar. 31, 2020	29,002,046	0	$ 1,138,096	447,134	31,338,914	$ (3,922,098)
Common Stock Shares at Mar. 31, 2020			966,132
Treasury Stock Shares at Mar. 31, 2020						171,964
Net income (loss)	(779,516)				(779,516)
Dividends declared	(96,612)				(96,612)
Ending Balance at Jun. 30, 2020	28,125,918	0	$ 1,138,096	447,134	30,462,786	$ (3,922,098)
Common Stock Shares at Jun. 30, 2020			966,132
Treasury Stock Shares at Jun. 30, 2020						171,964
Net income (loss)	309,135				309,135
Dividends declared	(96,614)				(96,614)
Ending Balance at Sep. 30, 2020	28,338,439	0	$ 1,138,096	447,134	30,675,307	$ (3,922,098)
Common Stock Shares at Sep. 30, 2020			966,132
Treasury Stock Shares at Sep. 30, 2020						171,964
Beginning Balance at Dec. 31, 2020	$ 28,706,089	0	$ 1,138,096	447,134	31,042,957	$ (3,922,098)
Common Stock Shares at Dec. 31, 2020	966,132		966,132
Treasury Stock Shares at Dec. 31, 2020						171,964
Net income (loss)	$ 540,128				540,128
Dividends declared	(212,549)				(212,549)
Ending Balance at Mar. 31, 2021	29,033,668	0	$ 1,138,096	447,134	31,370,536	$ (3,922,098)
Common Stock Shares at Mar. 31, 2021			966,132
Treasury Stock Shares at Mar. 31, 2021						171,964
Beginning Balance at Dec. 31, 2020	$ 28,706,089	0	$ 1,138,096	447,134	31,042,957	$ (3,922,098)
Common Stock Shares at Dec. 31, 2020	966,132		966,132
Treasury Stock Shares at Dec. 31, 2020						171,964
Net income (loss)	$ 1,032,294
Ending Balance at Sep. 30, 2021	$ 29,100,736	0	$ 1,138,096	447,134	31,437,604	$ (3,922,098)
Common Stock Shares at Sep. 30, 2021	966,132		966,132
Treasury Stock Shares at Sep. 30, 2021						171,964
Beginning Balance at Mar. 31, 2021	$ 29,033,668	0	$ 1,138,096	447,134	31,370,536	$ (3,922,098)
Common Stock Shares at Mar. 31, 2021			966,132
Treasury Stock Shares at Mar. 31, 2021						171,964
Net income (loss)	319,507				319,507
Dividends declared	(212,549)				(212,549)
Ending Balance at Jun. 30, 2021	29,140,626	0	$ 1,138,096	447,134	31,477,494	$ (3,922,098)
Common Stock Shares at Jun. 30, 2021			966,132
Treasury Stock Shares at Jun. 30, 2021						171,964
Net income (loss)	172,659				172,659
Dividends declared	(212,549)				(212,549)
Ending Balance at Sep. 30, 2021	$ 29,100,736	$ 0	$ 1,138,096	$ 447,134	$ 31,437,604	$ (3,922,098)
Common Stock Shares at Sep. 30, 2021	966,132		966,132
Treasury Stock Shares at Sep. 30, 2021						171,964

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - Parenthetical - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Details
Cash dividends declared per share	$ 0.22	$ 0.22	$ 0.22	$ 0.10	$ 0.10	$ 0.22	$ 0.66	$ 0.42

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income (loss)	$ 1,032,294	$ (413,813)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	990,983	1,014,916
Loss on disposal of equipment	21,564	0
Deferred income taxes	(94,000)	(72,000)
Changes in operating assets and liabilities:
Accounts receivable	(911,293)	(737,602)
Inventories	(2,591,976)	6,371
Other current assets and prepaid income taxes	(7,890)	(149,362)
Accounts payable	710,141	408,134
Accrued wages and salaries	389,796	315,161
Other accrued expenses	34,353	(84,645)
Unearned revenue and customer deposits	(40,959)	(35,351)
Net cash provided by (used in) operating activities	(466,987)	251,809
Cash flows from investing activities:
Capital expenditures	(587,615)	(375,657)
Proceeds from the sale of equipment	7,800	0
Proceeds from certificates of deposit	4,084,000	4,831,000
Purchases of certificates of deposit	(2,092,000)	(4,733,000)
Net cash provided by (used in) investing activities	1,412,185	(277,657)
Cash flows from financing activities:
Cash dividends paid	(637,647)	(405,775)
Net cash used in financing activities	(637,647)	(405,775)
Net increase (decrease) in cash and cash equivalents	307,551	(431,623)
Cash and cash equivalents at beginning of period	2,567,731	1,429,454
Cash and cash equivalents at end of period	$ 2,875,282	$ 997,831

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2021
Notes
Accounting Policies	1. In the opinion of the Company, the accompanying unaudited interim financial statements contain all adjustments necessary to present fairly the financial position of the Company as of September 30, 2021 (unaudited) and December 31, 2020 (audited) and the results of operations and changes in cash flows for the indicated periods. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted from these unaudited financial statements in accordance with applicable rules. Please refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of financial statements in conformity with generally accepted accounting principles 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. Actual results could differ from those estimates. The results of operations for the nine month period ended September 30, 2021 are not necessarily indicative of the results to be expected for the year.

Risks and Uncertainties

Risks and Uncertainties	9 Months Ended
	Sep. 30, 2021
Notes
Risks and Uncertainties	2. The Company extends credit on the basis of terms that are customary within our markets to various companies doing business primarily in the automotive industry. The Company has a concentration of credit risk primarily within the automotive industry and in the Midwestern United States.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Notes
Commitments and Contingencies	3. The Company is, from time to time, involved in litigation, including environmental claims and contract disputes, 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.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2021
Notes
Revenue	4. Revenue—The Company operates in the fastener industry and is in the business of manufacturing and selling rivets, cold-formed fasteners and parts, screw machine products, automatic rivet setting machines and parts and tools for such machines. Revenue is recognized when control of the promised goods or services is transferred to our customers, generally upon shipment of goods or completion of services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. For certain assembly equipment segment transactions, revenue is recognized based on progress toward completion of the performance obligation using a labor-based measure. Labor incurred and specific material costs are compared to milestone payments per sales contract. Based on our experience, this method most accurately reflects the transfer of goods under such contracts. During the third quarter of 2021, the Company realized $36,301 related to such contracts. As of September 30, 2021 there are no such contracts remaining. Sales taxes we may collect concurrent with revenue producing activities are excluded from revenue. Revenue is recognized net of certain sales adjustments to arrive at net sales as reported on the statement of income. These adjustments primarily relate to customer returns and allowances. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If we determine that our obligation under warranty claims is probable and subject to reasonable determination, an estimate of that liability is recorded as an offset against revenue at that time. As of September 30, 2021 and December 31, 2020 reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. Sales commissions are expensed when incurred because the amortization period is less than one year. These costs are recorded within selling and administrative expenses in the statement of income. The following table presents revenue by segment, further disaggregated by end-market: Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2021: Automotive $ 4,259,544 $ 27,998 $ 4,287,542 Non-automotive 3,293,075 975,114 4,268,189 Total net sales $ 7,552,619 $ 1,003,112 $ 8,555,731 Three Months Ended September 30, 2020: Automotive $ 4,660,451 $ 34,687 $ 4,695,138 Non-automotive 2,363,965 586,156 2,950,121 Total net sales $ 7,024,416 $ 620,843 $ 7,645,259 Nine Months Ended September 30, 2021: Automotive $ 13,410,100 $ 100,953 $ 13,511,053 Non-automotive 9,433,241 3,280,776 12,714,017 Total net sales $ 22,843,341 $ 3,381,729 $ 26,225,070 Nine Months Ended September 30, 2020: Automotive $ 10,653,621 $ 107,476 $ 10,761,097 Non-automotive 6,621,934 1,942,203 8,564,137 Total net sales $ 17,275,555 $ 2,049,679 $ 19,325,234 The following table presents revenue by segment, further disaggregated by location: Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2021: United States $ 6,300,067 $ 981,905 $ 7,281,972 Foreign 1,252,552 21,207 1,273,759 Total net sales $ 7,552,619 $ 1,003,112 $ 8,555,731 Three Months Ended September 30, 2020: United States $ 5,909,756 $ 603,858 $ 6,513,614 Foreign 1,114,660 16,985 1,131,645 Total net sales $ 7,024,416 $ 620,843 $ 7,645,259 Nine Months Ended September 30, 2021: United States $ 18,589,576 $ 3,320,415 $ 21,909,991 Foreign 4,253,765 61,314 4,315,079 Total net sales $ 22,843,341 $ 3,381,729 $ 26,225,070 Nine Months Ended September 30, 2020: United States $ 14,721,327 $ 1,891,485 $ 16,612,812 Foreign 2,554,228 158,194 2,712,422 Total net sales $ 17,275,555 $ 2,049,679 $ 19,325,234

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Notes
Income Taxes	5. The Company’s effective tax rates were approximately 16.9% and 25.4% for the third quarter of 2021 and 2020, respectively, and 20.9% and (32.7)% for the nine months ended September 30, 2021 and 2020, respectively. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The CARES Act allows for the carryback of any net operating loss arising in a tax year beginning after December 31, 2017 and before January 1, 2021, to each of the five tax years preceding the tax year in which the loss arises. As a result, the Company’s effective tax rates in the 2020 periods were higher than the statutory rates. The Company’s federal income tax returns for the 2018, 2019 and 2020 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 2018, 2019 and 2020 federal income tax returns will expire on September 15, 2022, 2023 and 2024, respectively. The Company’s state income tax returns for the 2018 through 2020 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2024. 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.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2021
Notes
Inventories	6. Inventories are stated at the lower of cost or net realizable value, cost being determined by the first-in, first-out method. A summary of inventories is as follows: September 30, 2021 December 31, 2020 Raw material $ 3,922,808 $ 2,245,709 Work-in-process 2,190,572 1,410,868 Finished goods 2,239,890 2,096,717 Inventories, gross 8,353,270 5,753,294 Valuation reserves (608,000) (600,000) Inventories, net $ 7,745,270 $ 5,153,294

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2021
Notes
Segment Reporting	7. Segment Information—The Company operates in two business segments as determined by its products. The fastener segment 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 Three Months Ended September 30, 2021: Net sales $ 7,552,619 $ 1,003,112 0 $ 8,555,731 Depreciation 291,512 33,534 5,448 330,494 Segment operating profit 480,288 215,869 0 696,157 Selling and administrative expenses 0 0 (491,547) (491,547) Interest income 0 0 3,049 3,049 Income before income taxes $ 207,659 Capital expenditures 77,007 0 165,395 242,402 Segment assets: Accounts receivable, net 5,623,045 451,698 0 6,074,743 Inventories, net 6,553,617 1,191,653 0 7,745,270 Property, plant and equipment, net 9,986,600 1,468,262 1,263,290 12,718,152 Other assets 0 0 6,093,884 6,093,884 $ 32,632,049 Three Months Ended September 30, 2020: Net sales $ 7,024,416 $ 620,843 0 $ 7,645,259 Depreciation 297,533 32,869 8,377 338,779 Segment operating loss 783,234 103,759 0 886,993 Selling and administrative expenses 0 0 (493,370) (493,370) Interest income 0 0 20,512 20,512 Income before income taxes $ 414,135 Capital expenditures 28,165 0 92,140 120,305 Segment assets: Accounts receivable, net 5,059,552 287,364 0 5,346,916 Inventories, net 3,880,189 1,064,617 0 4,944,806 Property, plant and equipment, net 10,381,970 1,588,157 1,064,667 13,034,794 Other assets 0 0 8,108,571 8,108,571 $ 31,435,087 Nine Months Ended September 30, 2021: Net sales $ 22,843,341 $ 3,381,729 0 $ 26,225,070 Depreciation 874,037 100,600 16,346 990,983 Segment operating profit 1,982,084 852,571 0 2,834,655 Selling and administrative expenses 0 0 (1,547,845) (1,547,845) Interest income 0 0 17,484 17,484 Income before income taxes $ 1,304,294 Capital expenditures 410,281 0 177,334 587,615 Nine Months Ended September 30, 2020: Net sales $ 17,275,555 $ 2,049,679 0 $ 19,325,234 Depreciation 891,177 98,607 25,132 1,014,916 Segment operating profit 533,742 319,340 0 853,082 Selling and administrative expenses 0 0 (1,547,606) (1,547,606) Interest income 0 0 79,711 79,711 Loss before income taxes $ (614,813) Capital expenditures 225,707 0 149,950 375,657

COVID-19

COVID-19	9 Months Ended
	Sep. 30, 2021
Notes
COVID-19	8. COVID-19 -In March 2020, the World Health Organization characterized the novel coronavirus (“COVID-19”) a pandemic and the President of the United States declared the COVID-19 outbreak a national emergency. The rapid spread of the virus and the response domestically and internationally to combat it caused a significant negative impact on the global economy, including the automotive industry upon which we rely for sales. Beginning in March 2020, most states issued executive orders which temporarily closed businesses deemed non-essential in an effort to limit the spread of the coronavirus. Similar measures also took place in foreign markets we serve. As a result, our operations and the operations of our customers and suppliers were adversely affected. Since some of our customers are classified as essential businesses and were allowed to continue to operate during this period, we were able to continue our operations, but at a significantly reduced level, in order to service those customers. Our automotive customers were particularly affected, as much of the sector was idled for an extended period of time during the second quarter of 2020 due to employee safety concerns. While most shut-down orders were lifted late in that quarter, various work-related restrictions continued and the economic fallout spread. During this period of rapidly changing business conditions and heightened uncertainty resulting from COVID-19, we took measures to reduce expenses and conserve capital, including reduced work schedules, delayed capital expenditures and a reduction in dividend payments. In the second half of 2020, we experienced improved demand as certain government-imposed restrictions were relaxed. While the economy has improved dramatically since this time last year, labor shortages and supply chain disruptions persist. The timing and sustainability of a broader economic recovery is uncertain and may continue to be tied to the course of the pandemic. As we cannot predict the duration or scope of the COVID-19 pandemic, or its broader impact on the global economy, including the demand for automobiles, it is unknown what the impact of COVID-19 and its related effects will be on our business, results of operations or financial condition, but the impact could be material and last for an extended period of time.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies	1. In the opinion of the Company, the accompanying unaudited interim financial statements contain all adjustments necessary to present fairly the financial position of the Company as of September 30, 2021 (unaudited) and December 31, 2020 (audited) and the results of operations and changes in cash flows for the indicated periods. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted from these unaudited financial statements in accordance with applicable rules. Please refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of financial statements in conformity with generally accepted accounting principles 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. Actual results could differ from those estimates. The results of operations for the nine month period ended September 30, 2021 are not necessarily indicative of the results to be expected for the year.
Risks and Uncertainties	2. The Company extends credit on the basis of terms that are customary within our markets to various companies doing business primarily in the automotive industry. The Company has a concentration of credit risk primarily within the automotive industry and in the Midwestern United States.
Commitments and Contingencies	3. The Company is, from time to time, involved in litigation, including environmental claims and contract disputes, 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.
Revenue	4. Revenue—The Company operates in the fastener industry and is in the business of manufacturing and selling rivets, cold-formed fasteners and parts, screw machine products, automatic rivet setting machines and parts and tools for such machines. Revenue is recognized when control of the promised goods or services is transferred to our customers, generally upon shipment of goods or completion of services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. For certain assembly equipment segment transactions, revenue is recognized based on progress toward completion of the performance obligation using a labor-based measure. Labor incurred and specific material costs are compared to milestone payments per sales contract. Based on our experience, this method most accurately reflects the transfer of goods under such contracts. During the third quarter of 2021, the Company realized $36,301 related to such contracts. As of September 30, 2021 there are no such contracts remaining. Sales taxes we may collect concurrent with revenue producing activities are excluded from revenue. Revenue is recognized net of certain sales adjustments to arrive at net sales as reported on the statement of income. These adjustments primarily relate to customer returns and allowances. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If we determine that our obligation under warranty claims is probable and subject to reasonable determination, an estimate of that liability is recorded as an offset against revenue at that time. As of September 30, 2021 and December 31, 2020 reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. Sales commissions are expensed when incurred because the amortization period is less than one year. These costs are recorded within selling and administrative expenses in the statement of income.
Income Taxes	5. The Company’s effective tax rates were approximately 16.9% and 25.4% for the third quarter of 2021 and 2020, respectively, and 20.9% and (32.7)% for the nine months ended September 30, 2021 and 2020, respectively. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The CARES Act allows for the carryback of any net operating loss arising in a tax year beginning after December 31, 2017 and before January 1, 2021, to each of the five tax years preceding the tax year in which the loss arises. As a result, the Company’s effective tax rates in the 2020 periods were higher than the statutory rates. The Company’s federal income tax returns for the 2018, 2019 and 2020 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 2018, 2019 and 2020 federal income tax returns will expire on September 15, 2022, 2023 and 2024, respectively. The Company’s state income tax returns for the 2018 through 2020 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2024. 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.
Inventories	6. Inventories are stated at the lower of cost or net realizable value, cost being determined by the first-in, first-out method.
Segment Reporting	7. Segment Information—The Company operates in two business segments as determined by its products. The fastener segment 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.

Revenue_ Disaggregation of Reve

Revenue: Disaggregation of Revenue (Tables)	9 Months Ended
	Sep. 30, 2021
Location
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2021: United States $ 6,300,067 $ 981,905 $ 7,281,972 Foreign 1,252,552 21,207 1,273,759 Total net sales $ 7,552,619 $ 1,003,112 $ 8,555,731 Three Months Ended September 30, 2020: United States $ 5,909,756 $ 603,858 $ 6,513,614 Foreign 1,114,660 16,985 1,131,645 Total net sales $ 7,024,416 $ 620,843 $ 7,645,259 Nine Months Ended September 30, 2021: United States $ 18,589,576 $ 3,320,415 $ 21,909,991 Foreign 4,253,765 61,314 4,315,079 Total net sales $ 22,843,341 $ 3,381,729 $ 26,225,070 Nine Months Ended September 30, 2020: United States $ 14,721,327 $ 1,891,485 $ 16,612,812 Foreign 2,554,228 158,194 2,712,422 Total net sales $ 17,275,555 $ 2,049,679 $ 19,325,234
End Market
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2021: Automotive $ 4,259,544 $ 27,998 $ 4,287,542 Non-automotive 3,293,075 975,114 4,268,189 Total net sales $ 7,552,619 $ 1,003,112 $ 8,555,731 Three Months Ended September 30, 2020: Automotive $ 4,660,451 $ 34,687 $ 4,695,138 Non-automotive 2,363,965 586,156 2,950,121 Total net sales $ 7,024,416 $ 620,843 $ 7,645,259 Nine Months Ended September 30, 2021: Automotive $ 13,410,100 $ 100,953 $ 13,511,053 Non-automotive 9,433,241 3,280,776 12,714,017 Total net sales $ 22,843,341 $ 3,381,729 $ 26,225,070 Nine Months Ended September 30, 2020: Automotive $ 10,653,621 $ 107,476 $ 10,761,097 Non-automotive 6,621,934 1,942,203 8,564,137 Total net sales $ 17,275,555 $ 2,049,679 $ 19,325,234

Inventories_ Inventories (Table

Inventories: Inventories (Tables)	9 Months Ended
	Sep. 30, 2021
Tables/Schedules
Inventories	September 30, 2021 December 31, 2020 Raw material $ 3,922,808 $ 2,245,709 Work-in-process 2,190,572 1,410,868 Finished goods 2,239,890 2,096,717 Inventories, gross 8,353,270 5,753,294 Valuation reserves (608,000) (600,000) Inventories, net $ 7,745,270 $ 5,153,294

Segment Reporting_ Schedule of

Segment Reporting: Schedule of Segment Reporting by Segment (Tables)	9 Months Ended
	Sep. 30, 2021
Tables/Schedules
Schedule of Segment Reporting by Segment	Fastener Assembly Equipment Other Consolidated Three Months Ended September 30, 2021: Net sales $ 7,552,619 $ 1,003,112 0 $ 8,555,731 Depreciation 291,512 33,534 5,448 330,494 Segment operating profit 480,288 215,869 0 696,157 Selling and administrative expenses 0 0 (491,547) (491,547) Interest income 0 0 3,049 3,049 Income before income taxes $ 207,659 Capital expenditures 77,007 0 165,395 242,402 Segment assets: Accounts receivable, net 5,623,045 451,698 0 6,074,743 Inventories, net 6,553,617 1,191,653 0 7,745,270 Property, plant and equipment, net 9,986,600 1,468,262 1,263,290 12,718,152 Other assets 0 0 6,093,884 6,093,884 $ 32,632,049 Three Months Ended September 30, 2020: Net sales $ 7,024,416 $ 620,843 0 $ 7,645,259 Depreciation 297,533 32,869 8,377 338,779 Segment operating loss 783,234 103,759 0 886,993 Selling and administrative expenses 0 0 (493,370) (493,370) Interest income 0 0 20,512 20,512 Income before income taxes $ 414,135 Capital expenditures 28,165 0 92,140 120,305 Segment assets: Accounts receivable, net 5,059,552 287,364 0 5,346,916 Inventories, net 3,880,189 1,064,617 0 4,944,806 Property, plant and equipment, net 10,381,970 1,588,157 1,064,667 13,034,794 Other assets 0 0 8,108,571 8,108,571 $ 31,435,087 Nine Months Ended September 30, 2021: Net sales $ 22,843,341 $ 3,381,729 0 $ 26,225,070 Depreciation 874,037 100,600 16,346 990,983 Segment operating profit 1,982,084 852,571 0 2,834,655 Selling and administrative expenses 0 0 (1,547,845) (1,547,845) Interest income 0 0 17,484 17,484 Income before income taxes $ 1,304,294 Capital expenditures 410,281 0 177,334 587,615 Nine Months Ended September 30, 2020: Net sales $ 17,275,555 $ 2,049,679 0 $ 19,325,234 Depreciation 891,177 98,607 25,132 1,014,916 Segment operating profit 533,742 319,340 0 853,082 Selling and administrative expenses 0 0 (1,547,606) (1,547,606) Interest income 0 0 79,711 79,711 Loss before income taxes $ (614,813) Capital expenditures 225,707 0 149,950 375,657

Revenue_ Revenue (Details)

Revenue: Revenue (Details)	3 Months Ended
	Sep. 30, 2021USD ($)
Details
Revenue Recognized, Performance Obligation	$ 36,301

Revenue_ Disaggregation of Re_2

Revenue: Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue	$ 8,555,731	$ 7,645,259	$ 26,225,070	$ 19,325,234
United States
Revenue	7,281,972	6,513,614	21,909,991	16,612,812
Foreign
Revenue	1,273,759	1,131,645	4,315,079	2,712,422
Automotive
Revenue	4,287,542	4,695,138	13,511,053	10,761,097
Nonautomotive
Revenue	4,268,189	2,950,121	12,714,017	8,564,137
Fastener
Revenue	7,552,619	7,024,416	22,843,341	17,275,555
Fastener | United States
Revenue	6,300,067	5,909,756	18,589,576	14,721,327
Fastener | Foreign
Revenue	1,252,552	1,114,660	4,253,765	2,554,228
Fastener | Automotive
Revenue	4,259,544	4,660,451	13,410,100	10,653,621
Fastener | Nonautomotive
Revenue	3,293,075	2,363,965	9,433,241	6,621,934
Assembly Equipment
Revenue	1,003,112	620,843	3,381,729	2,049,679
Assembly Equipment | United States
Revenue	981,905	603,858	3,320,415	1,891,485
Assembly Equipment | Foreign
Revenue	21,207	16,985	61,314	158,194
Assembly Equipment | Automotive
Revenue	27,998	34,687	100,953	107,476
Assembly Equipment | Nonautomotive
Revenue	$ 975,114	$ 586,156	$ 3,280,776	$ 1,942,203

Inventories_ Inventories (Detai

Inventories: Inventories (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Details
Raw material	$ 3,922,808	$ 2,245,709
Work-in-process	2,190,572	1,410,868
Finished goods	2,239,890	2,096,717
Inventories, gross	8,353,270	5,753,294
Valuation reserves	(608,000)	(600,000)
Inventories, net	$ 7,745,270	$ 5,153,294

Segment Reporting_ Schedule o_2

Segment Reporting: Schedule of Segment Reporting by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Net sales	$ 8,555,731	$ 7,645,259	$ 26,225,070	$ 19,325,234
Depreciation			990,983	1,014,916
Accounts receivable - Less allowances of $170,000	6,074,743		6,074,743		$ 5,163,450
Inventories, net	7,745,270		7,745,270		5,153,294
Net property, plant and equipment	12,718,152		12,718,152		$ 13,150,884
Fastener
Net sales	7,552,619	7,024,416	22,843,341	17,275,555
Depreciation	291,512	297,533	874,037	891,177
Segment operating profit	480,288	783,234	1,982,084	533,742
Selling and Administrative Expenses	0	0	0	0
Interest income	0	0	0	0
Capital expenditures	77,007	28,165	410,281	225,707
Accounts receivable - Less allowances of $170,000	5,623,045	5,059,552	5,623,045	5,059,552
Inventories, net	6,553,617	3,880,189	6,553,617	3,880,189
Net property, plant and equipment	9,986,600	10,381,970	9,986,600	10,381,970
Other Assets	0	0	0	0
Assembly Equipment
Net sales	1,003,112	620,843	3,381,729	2,049,679
Depreciation	33,534	32,869	100,600	98,607
Segment operating profit	215,869	103,759	852,571	319,340
Selling and Administrative Expenses	0	0	0	0
Interest income	0	0	0	0
Capital expenditures	0	0	0	0
Accounts receivable - Less allowances of $170,000	451,698	287,364	451,698	287,364
Inventories, net	1,191,653	1,064,617	1,191,653	1,064,617
Net property, plant and equipment	1,468,262	1,588,157	1,468,262	1,588,157
Other Assets	0	0	0	0
Unallocated Corporate
Net sales	0	0	0	0
Depreciation	5,448	8,377	16,346	25,132
Segment operating profit	0	0	0	0
Selling and Administrative Expenses	(491,547)	(493,370)	(1,547,845)	(1,547,606)
Interest income	3,049	20,512	17,484	79,711
Capital expenditures	165,395	92,140	177,334	149,950
Accounts receivable - Less allowances of $170,000	0	0	0	0
Inventories, net	0	0	0	0
Net property, plant and equipment	1,263,290	1,064,667	1,263,290	1,064,667
Other Assets	$ 6,093,884	$ 8,108,571	$ 6,093,884	$ 8,108,571