Chicago Rivet & Machine (CVR) 10-Q 5 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 04, 2022
Details
Registrant CIK	0000019871
Fiscal Year End	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Securities Act 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	2022
Document Fiscal Period Focus	Q2
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 862,732	$ 2,036,954
Certificates of deposit	2,741,000	2,741,000
Accounts receivable - Less allowances of $162,000 and $170,000, respectively	6,842,227	5,647,984
Inventories, net	9,615,373	8,519,780
Prepaid income taxes	0	440
Other current assets	424,821	346,236
Total current assets	20,486,153	19,292,394
Property, Plant and Equipment
Land and improvements	1,778,819	1,778,819
Buildings and improvements	8,490,340	8,456,983
Production equipment and other	36,857,460	36,679,114
Property, Plant and Equipment, Gross	47,126,619	46,914,916
Less accumulated depreciation	35,081,900	34,441,052
Net property, plant and equipment	12,044,719	12,473,864
Total assets	32,530,872	31,766,258
Current Liabilities
Accounts payable	1,075,545	692,635
Accrued wages and salaries	744,805	509,332
Other accrued expenses	298,820	366,418
Unearned revenue and customer deposits	226,711	302,424
Federal and state income taxes	159,423	0
Total current liabilities	2,505,304	1,870,809
Deferred income taxes	880,084	926,084
Total liabilities	3,385,388	2,796,893
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	31,482,352	31,306,233
Treasury stock, 171,964 shares at cost	(3,922,098)	(3,922,098)
Total shareholders' equity	29,145,484	28,969,365
Total liabilities and shareholders' equity	$ 32,530,872	$ 31,766,258

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets - Parenthetical - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Details
Accounts Receivable, Allowance for Credit Loss, Current	$ 162,000	$ 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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Income (Unaudited)
Net sales	$ 9,023,398	$ 8,364,390	$ 18,221,094	$ 17,669,339
Cost of goods sold	7,577,021	6,687,313	14,918,495	13,957,825
Gross profit	1,446,377	1,677,077	3,302,599	3,711,514
Selling and administrative expenses	1,263,921	1,284,748	2,559,585	2,646,949
Operating profit	182,456	392,329	743,014	1,064,565
Other income	12,448	14,178	22,203	32,070
Income before income taxes	194,904	406,507	765,217	1,096,635
Provision for income taxes	41,000	87,000	164,000	237,000
Net income	$ 153,904	$ 319,507	$ 601,217	$ 859,635
Per share data
Basic net income per share	$ 0.16	$ 0.33	$ 0.62	$ 0.89
Diluted net income per share	$ 0.16	$ 0.33	$ 0.62	$ 0.89
Basic	966,132	966,132	966,132	966,132
Diluted	966,132	966,132	966,132	966,132
Cash dividends declared per share	$ 0.22	$ 0.22	$ 0.44	$ 0.44

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, 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
Treasury Stock Shares at Dec. 31, 2020						171,964
Net income	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
Treasury Stock Shares at Dec. 31, 2020						171,964
Net income	859,635
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
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	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
Beginning Balance at Dec. 31, 2021	$ 28,969,365	0	$ 1,138,096	447,134	31,306,233	$ (3,922,098)
Common Stock Shares at Dec. 31, 2021	966,132		966,132
Treasury Stock Shares at Dec. 31, 2021						171,964
Net income	$ 447,313				447,313
Dividends declared	(212,549)				(212,549)
Ending Balance at Mar. 31, 2022	29,204,129	0	$ 1,138,096	447,134	31,540,997	$ (3,922,098)
Common Stock Shares at Mar. 31, 2022			966,132
Treasury Stock Shares at Mar. 31, 2022						171,964
Beginning Balance at Dec. 31, 2021	$ 28,969,365	0	$ 1,138,096	447,134	31,306,233	$ (3,922,098)
Common Stock Shares at Dec. 31, 2021	966,132		966,132
Treasury Stock Shares at Dec. 31, 2021						171,964
Net income	$ 601,217
Ending Balance at Jun. 30, 2022	$ 29,145,484	0	$ 1,138,096	447,134	31,482,352	$ (3,922,098)
Common Stock Shares at Jun. 30, 2022	966,132		966,132
Treasury Stock Shares at Jun. 30, 2022						171,964
Beginning Balance at Mar. 31, 2022	$ 29,204,129	0	$ 1,138,096	447,134	31,540,997	$ (3,922,098)
Common Stock Shares at Mar. 31, 2022			966,132
Treasury Stock Shares at Mar. 31, 2022						171,964
Net income	153,904				153,904
Dividends declared	(212,549)				(212,549)
Ending Balance at Jun. 30, 2022	$ 29,145,484	$ 0	$ 1,138,096	$ 447,134	$ 31,482,352	$ (3,922,098)
Common Stock Shares at Jun. 30, 2022	966,132		966,132
Treasury Stock Shares at Jun. 30, 2022						171,964

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - Parenthetical - $ / shares	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Details
Cash dividends declared per share	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.44	$ 0.44

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net income	$ 601,217	$ 859,635
Adjustments to reconcile net income to net cash used in operating activities
Depreciation	640,848	660,489
Loss on disposal of equipment	0	16,081
Deferred income taxes	(46,000)	(72,000)
Changes in operating assets and liabilities
Accounts receivable	(1,194,243)	(746,528)
Inventories	(1,095,593)	(1,903,375)
Other current assets	(78,145)	64,595
Accounts payable	382,910	576,083
Accrued wages and salaries	235,473	394,494
Other accrued expenses	91,825	19,635
Unearned revenue and customer deposits	(75,713)	(169,245)
Net cash used in operating activities	(537,421)	(300,136)
Cash flows from investing activities
Capital expenditures	(211,703)	(345,213)
Proceeds from certificates of deposit	0	3,337,000
Purchases of certificates of deposit	0	(598,000)
Net cash provided by (used in) investing activities	(211,703)	2,393,787
Cash flows from financing activities
Cash dividends paid	(425,098)	(425,098)
Net cash used in financing activities	(425,098)	(425,098)
Net increase (decrease) in cash and cash equivalents	(1,174,222)	1,668,553
Cash and cash equivalents at beginning of period	2,036,954	2,567,731
Cash and cash equivalents at end of period	$ 862,732	$ 4,236,284

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 (unaudited) and December 31, 2021 (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, 2021. 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 six month period ended June 30, 2022 are not necessarily indicative of the results to be expected for the year.

Risks and Uncertainties

Risks and Uncertainties	6 Months Ended
	Jun. 30, 2022
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	6 Months Ended
	Jun. 30, 2022
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	6 Months Ended
	Jun. 30, 2022
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 second quarter of 2022, the Company did not realize any revenue related to such contracts. As of June 30, 2022, there are no such contracts outstanding. 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 June 30, 2022 and December 31, 2021 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 June 30, 2022: Automotive $ 4,550,809 $ 59,818 $ 4,610,627 Non-automotive 3,508,803 903,968 4,412,771 Total net sales $ 8,059,612 $ 963,786 $ 9,023,398 Three Months Ended June 30, 2021: Automotive $ 4,091,087 $ 39,983 $ 4,131,070 Non-automotive 3,050,957 1,182,363 4,233,320 Total net sales $ 7,142,044 $ 1,222,346 $ 8,364,390 Six Months Ended June 30, 2022: Automotive $ 9,454,992 $ 101,652 $ 9,556,644 Non-automotive 6,758,453 1,905,997 8,664,450 Total net sales $ 16,213,445 $ 2,007,649 $ 18,221,094 Six Months Ended June 30, 2021: Automotive $ 9,150,556 $ 72,955 $ 9,223,511 Non-automotive 6,140,166 2,305,662 8,445,828 Total net sales $ 15,290,722 $ 2,378,617 $ 17,669,339 The following table presents revenue by segment, further disaggregated by location: Fastener Assembly Equipment Consolidated Three Months Ended June 30, 2022: United States $ 6,796,779 $ 932,468 $ 7,729,247 Foreign 1,262,833 31,318 1,294,151 Total net sales $ 8,059,612 $ 963,786 $ 9,023,398 Three Months Ended June 30, 2021: United States $ 5,851,657 $ 1,208,150 $ 7,059,807 Foreign 1,290,387 14,196 1,304,583 Total net sales $ 7,142,044 $ 1,222,346 $ 8,364,390 Six Months Ended June 30, 2022: United States $ 13,556,908 $ 1,936,618 $ 15,493,526 Foreign 2,656,537 71,031 2,727,568 Total net sales $ 16,213,445 $ 2,007,649 $ 18,221,094 Six Months Ended June 30, 2021: United States $ 12,289,509 $ 2,338,510 $ 14,628,019 Foreign 3,001,213 40,107 3,041,320 Total net sales $ 15,290,722 $ 2,378,617 $ 17,669,339

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Notes
Income Taxes	5. The Company’s effective tax rates were approximately 21.0% and 21.4% for the second quarter of 2022 and 2021, respectively, and 21.4% and 21.6% for the six months ended June 30, 2022 and 2021, respectively. The Company’s federal income tax returns for the 2018 through 2021 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 through 2021 federal income tax returns will expire on September 15, 2022 through 2025, respectively. The Company’s state income tax returns for the 2018 through 2021 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2025. The Company is not currently under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2022
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: June 30, 2022 December 31, 2021 Raw material $ 5,118,851 $ 4,645,923 Work-in-process 2,855,037 2,181,457 Finished goods 2,283,485 2,304,400 Inventories, gross 10,257,373 9,131,780 Valuation reserves (642,000) (612,000) Inventories, net $ 9,615,373 $ 8,519,780

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022: Net sales $ 8,059,612 $ 963,786 0 $ 9,023,398 Depreciation 281,841 33,363 5,220 320,424 Segment operating profit 499,531 191,011 0 690,542 Selling and administrative expenses 0 0 (497,736) (497,736) Interest income 0 0 2,098 2,098 Income before income taxes $ 194,904 Capital expenditures 65,482 0 25,627 91,109 Segment assets: Accounts receivable, net 6,330,240 511,987 0 6,842,227 Inventories, net 8,341,612 1,273,761 0 9,615,373 Property, plant and equipment, net 9,396,988 1,367,179 1,260,552 12,044,719 Other assets 0 0 4,028,553 4,028,553 $ 32,530,872 Three Months Ended June 30, 2021: Net sales $ 7,142,044 $ 1,222,346 0 $ 8,364,390 Depreciation 291,342 33,533 5,449 330,324 Segment operating profit 574,638 340,002 0 914,640 Selling and administrative expenses 0 0 (512,526) (512,526) Interest income 0 0 4,393 4,393 Income before income taxes $ 406,507 Capital expenditures 228,750 0 0 228,750 Segment assets: Accounts receivable, net 5,443,167 466,811 0 5,909,978 Inventories, net 5,861,971 1,194,698 0 7,056,669 Property, plant and equipment, net 10,214,388 1,501,796 1,103,343 12,819,527 Other assets 0 0 6,635,401 6,635,401 $ 32,421,575 Six Months Ended June 30, 2022: Net sales $ 16,213,445 $ 2,007,649 0 $ 18,221,094 Depreciation 563,682 66,726 10,440 640,848 Segment operating profit 1,335,038 423,390 0 1,758,428 Selling and administrative expenses 0 0 (997,064) (997,064) Interest income 0 0 3,853 3,853 Income before income taxes $ 765,217 Capital expenditures 178,346 0 33,357 211,703 Six Months Ended June 30, 2021: Net sales $ 15,290,722 $ 2,378,617 0 $ 17,669,339 Depreciation 582,525 67,066 10,898 660,489 Segment operating profit 1,501,796 636,702 0 2,138,498 Selling and administrative expenses 0 0 (1,056,298) (1,056,298) Interest income 0 0 14,435 14,435 Income before income taxes $ 1,096,635 Capital expenditures 333,274 0 11,939 345,213

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022 (unaudited) and December 31, 2021 (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, 2021. 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 six month period ended June 30, 2022 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 second quarter of 2022, the Company did not realize any revenue related to such contracts. As of June 30, 2022, there are no such contracts outstanding. 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 June 30, 2022 and December 31, 2021 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 21.0% and 21.4% for the second quarter of 2022 and 2021, respectively, and 21.4% and 21.6% for the six months ended June 30, 2022 and 2021, respectively. The Company’s federal income tax returns for the 2018 through 2021 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 through 2021 federal income tax returns will expire on September 15, 2022 through 2025, respectively. The Company’s state income tax returns for the 2018 through 2021 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2025. The Company is not currently 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. A summary of inventories is as follows:
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)	6 Months Ended
	Jun. 30, 2022
Location
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended June 30, 2022: United States $ 6,796,779 $ 932,468 $ 7,729,247 Foreign 1,262,833 31,318 1,294,151 Total net sales $ 8,059,612 $ 963,786 $ 9,023,398 Three Months Ended June 30, 2021: United States $ 5,851,657 $ 1,208,150 $ 7,059,807 Foreign 1,290,387 14,196 1,304,583 Total net sales $ 7,142,044 $ 1,222,346 $ 8,364,390 Six Months Ended June 30, 2022: United States $ 13,556,908 $ 1,936,618 $ 15,493,526 Foreign 2,656,537 71,031 2,727,568 Total net sales $ 16,213,445 $ 2,007,649 $ 18,221,094 Six Months Ended June 30, 2021: United States $ 12,289,509 $ 2,338,510 $ 14,628,019 Foreign 3,001,213 40,107 3,041,320 Total net sales $ 15,290,722 $ 2,378,617 $ 17,669,339
End Market
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended June 30, 2022: Automotive $ 4,550,809 $ 59,818 $ 4,610,627 Non-automotive 3,508,803 903,968 4,412,771 Total net sales $ 8,059,612 $ 963,786 $ 9,023,398 Three Months Ended June 30, 2021: Automotive $ 4,091,087 $ 39,983 $ 4,131,070 Non-automotive 3,050,957 1,182,363 4,233,320 Total net sales $ 7,142,044 $ 1,222,346 $ 8,364,390 Six Months Ended June 30, 2022: Automotive $ 9,454,992 $ 101,652 $ 9,556,644 Non-automotive 6,758,453 1,905,997 8,664,450 Total net sales $ 16,213,445 $ 2,007,649 $ 18,221,094 Six Months Ended June 30, 2021: Automotive $ 9,150,556 $ 72,955 $ 9,223,511 Non-automotive 6,140,166 2,305,662 8,445,828 Total net sales $ 15,290,722 $ 2,378,617 $ 17,669,339

Inventories_ Inventories (Table

Inventories: Inventories (Tables)	6 Months Ended
	Jun. 30, 2022
Tables/Schedules
Inventories	June 30, 2022 December 31, 2021 Raw material $ 5,118,851 $ 4,645,923 Work-in-process 2,855,037 2,181,457 Finished goods 2,283,485 2,304,400 Inventories, gross 10,257,373 9,131,780 Valuation reserves (642,000) (612,000) Inventories, net $ 9,615,373 $ 8,519,780

Segment Reporting_ Schedule of

Segment Reporting: Schedule of Segment Reporting by Segment (Tables)	6 Months Ended
	Jun. 30, 2022
Tables/Schedules
Schedule of Segment Reporting by Segment	Fastener Assembly Equipment Other Consolidated Three Months Ended June 30, 2022: Net sales $ 8,059,612 $ 963,786 0 $ 9,023,398 Depreciation 281,841 33,363 5,220 320,424 Segment operating profit 499,531 191,011 0 690,542 Selling and administrative expenses 0 0 (497,736) (497,736) Interest income 0 0 2,098 2,098 Income before income taxes $ 194,904 Capital expenditures 65,482 0 25,627 91,109 Segment assets: Accounts receivable, net 6,330,240 511,987 0 6,842,227 Inventories, net 8,341,612 1,273,761 0 9,615,373 Property, plant and equipment, net 9,396,988 1,367,179 1,260,552 12,044,719 Other assets 0 0 4,028,553 4,028,553 $ 32,530,872 Three Months Ended June 30, 2021: Net sales $ 7,142,044 $ 1,222,346 0 $ 8,364,390 Depreciation 291,342 33,533 5,449 330,324 Segment operating profit 574,638 340,002 0 914,640 Selling and administrative expenses 0 0 (512,526) (512,526) Interest income 0 0 4,393 4,393 Income before income taxes $ 406,507 Capital expenditures 228,750 0 0 228,750 Segment assets: Accounts receivable, net 5,443,167 466,811 0 5,909,978 Inventories, net 5,861,971 1,194,698 0 7,056,669 Property, plant and equipment, net 10,214,388 1,501,796 1,103,343 12,819,527 Other assets 0 0 6,635,401 6,635,401 $ 32,421,575 Six Months Ended June 30, 2022: Net sales $ 16,213,445 $ 2,007,649 0 $ 18,221,094 Depreciation 563,682 66,726 10,440 640,848 Segment operating profit 1,335,038 423,390 0 1,758,428 Selling and administrative expenses 0 0 (997,064) (997,064) Interest income 0 0 3,853 3,853 Income before income taxes $ 765,217 Capital expenditures 178,346 0 33,357 211,703 Six Months Ended June 30, 2021: Net sales $ 15,290,722 $ 2,378,617 0 $ 17,669,339 Depreciation 582,525 67,066 10,898 660,489 Segment operating profit 1,501,796 636,702 0 2,138,498 Selling and administrative expenses 0 0 (1,056,298) (1,056,298) Interest income 0 0 14,435 14,435 Income before income taxes $ 1,096,635 Capital expenditures 333,274 0 11,939 345,213

Revenue_ Disaggregation of Re_2

Revenue: Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue	$ 9,023,398	$ 8,364,390	$ 18,221,094	$ 17,669,339
United States
Revenue	7,729,247	7,059,807	15,493,526	14,628,019
Foreign
Revenue	1,294,151	1,304,583	2,727,568	3,041,320
Automotive
Revenue	4,610,627	4,131,070	9,556,644	9,223,511
Nonautomotive
Revenue	4,412,771	4,233,320	8,664,450	8,445,828
Fastener
Revenue	8,059,612	7,142,044	16,213,445	15,290,722
Fastener | United States
Revenue	6,796,779	5,851,657	13,556,908	12,289,509
Fastener | Foreign
Revenue	1,262,833	1,290,387	2,656,537	3,001,213
Fastener | Automotive
Revenue	4,550,809	4,091,087	9,454,992	9,150,556
Fastener | Nonautomotive
Revenue	3,508,803	3,050,957	6,758,453	6,140,166
Assembly Equipment
Revenue	963,786	1,222,346	2,007,649	2,378,617
Assembly Equipment | United States
Revenue	932,468	1,208,150	1,936,618	2,338,510
Assembly Equipment | Foreign
Revenue	31,318	14,196	71,031	40,107
Assembly Equipment | Automotive
Revenue	59,818	39,983	101,652	72,955
Assembly Equipment | Nonautomotive
Revenue	$ 903,968	$ 1,182,363	$ 1,905,997	$ 2,305,662

Inventories_ Inventories (Detai

Inventories: Inventories (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Details
Raw material	$ 5,118,851	$ 4,645,923
Work-in-process	2,855,037	2,181,457
Finished goods	2,283,485	2,304,400
Inventories, gross	10,257,373	9,131,780
Valuation reserves	(642,000)	(612,000)
Inventories, net	$ 9,615,373	$ 8,519,780

Segment Reporting_ Schedule o_2

Segment Reporting: Schedule of Segment Reporting by Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Net sales	$ 9,023,398	$ 8,364,390	$ 18,221,094	$ 17,669,339
Depreciation			640,848	660,489
Accounts receivable - Less allowances of $162,000 and $170,000, respectively	6,842,227		6,842,227		$ 5,647,984
Inventories, net	9,615,373		9,615,373		8,519,780
Net property, plant and equipment	12,044,719		12,044,719		$ 12,473,864
Fastener
Net sales	8,059,612	7,142,044	16,213,445	15,290,722
Depreciation	281,841	291,342	563,682	582,525
Segment operating profit	499,531	574,638	1,335,038	1,501,796
Selling and Administrative Expenses	0	0	0	0
Interest income	0	0	0	0
Capital expenditures	65,482	228,750	178,346	333,274
Accounts receivable - Less allowances of $162,000 and $170,000, respectively	6,330,240	5,443,167	6,330,240	5,443,167
Inventories, net	8,341,612	5,861,971	8,341,612	5,861,971
Net property, plant and equipment	9,396,988	10,214,388	9,396,988	10,214,388
Other Assets	0	0	0	0
Assembly Equipment
Net sales	963,786	1,222,346	2,007,649	2,378,617
Depreciation	33,363	33,533	66,726	67,066
Segment operating profit	191,011	340,002	423,390	636,702
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 $162,000 and $170,000, respectively	511,987	466,811	511,987	466,811
Inventories, net	1,273,761	1,194,698	1,273,761	1,194,698
Net property, plant and equipment	1,367,179	1,501,796	1,367,179	1,501,796
Other Assets	0	0	0	0
Unallocated Corporate
Net sales	0	0	0	0
Depreciation	5,220	5,449	10,440	10,898
Segment operating profit	0	0	0	0
Selling and Administrative Expenses	(497,736)	(512,526)	(997,064)	(1,056,298)
Interest income	2,098	4,393	3,853	14,435
Capital expenditures	25,627	0	33,357	11,939
Accounts receivable - Less allowances of $162,000 and $170,000, respectively	0	0	0	0
Inventories, net	0	0	0	0
Net property, plant and equipment	1,260,552	1,103,343	1,260,552	1,103,343
Other Assets	$ 4,028,553	$ 6,635,401	$ 4,028,553	$ 6,635,401