Chicago Rivet & Machine (CVR) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Details
Registrant CIK	0000019871
Fiscal Year End	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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	2022
Document Fiscal Period Focus	Q3
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 5,328,732	$ 2,036,954
Certificates of deposit	2,741,000	2,741,000
Accounts receivable - Less allowances of $162,000 and $170,000, respectively	6,578,114	5,647,984
Inventories, net	9,921,472	8,519,780
Prepaid income taxes	0	440
Other current assets	422,002	346,236
Total current assets	24,991,320	19,292,394
Property, Plant and Equipment
Land and improvements	1,510,513	1,778,819
Buildings and improvements	6,745,058	8,456,983
Production equipment and other	37,133,750	36,679,114
Property, Plant and Equipment, Gross	45,389,321	46,914,916
Less accumulated depreciation	33,481,667	34,441,052
Net property, plant and equipment	11,907,654	12,473,864
Total assets	36,898,974	31,766,258
Current Liabilities
Accounts payable	897,430	692,635
Accrued wages and salaries	838,030	509,332
Other accrued expenses	411,519	366,418
Unearned revenue and customer deposits	175,330	302,424
Federal and state income taxes	1,164,586	0
Total current liabilities	3,486,895	1,870,809
Deferred income taxes	900,084	926,084
Total liabilities	4,386,979	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	34,848,863	31,306,233
Treasury stock, 171,964 shares at cost	(3,922,098)	(3,922,098)
Total shareholders' equity	32,511,995	28,969,365
Total liabilities and shareholders' equity	$ 36,898,974	$ 31,766,258

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets - Parenthetical - USD ($)	Sep. 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Consolidated Statements of Income (Unaudited)
Net sales	$ 8,567,785	$ 8,555,731	$ 26,788,879	$ 26,225,070
Cost of goods sold	7,447,877	7,069,700	22,366,372	21,027,525
Gross profit	1,119,908	1,486,031	4,422,507	5,197,545
Operating (income) expenses
Selling and administrative expenses	1,250,385	1,290,046	3,809,970	3,936,995
Gain on sale of property	(4,738,394)	0	(4,738,394)	0
Total operating (income) expenses	(3,488,009)	1,290,046	(928,424)	3,936,995
Operating profit	4,607,917	195,985	5,350,931	1,260,550
Other income	13,143	11,674	35,346	43,744
Income before income taxes	4,621,060	207,659	5,386,277	1,304,294
Provision for income taxes	1,042,000	35,000	1,206,000	272,000
Net income	$ 3,579,060	$ 172,659	$ 4,180,277	$ 1,032,294
Per share data
Basic net income per share	$ 3.71	$ 0.18	$ 4.33	$ 1.07
Diluted net income per share	$ 3.71	$ 0.18	$ 4.33	$ 1.07
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	$ 0.66	$ 0.66

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	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
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	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	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
Treasury Stock Shares at Sep. 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	$ 4,180,277
Ending Balance at Sep. 30, 2022	$ 32,511,995	0	$ 1,138,096	447,134	34,848,863	$ (3,922,098)
Common Stock Shares at Sep. 30, 2022	966,132		966,132
Treasury Stock Shares at Sep. 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
Treasury Stock Shares at Jun. 30, 2022						171,964
Net income	3,579,060				3,579,060
Dividends declared	(212,549)				(212,549)
Ending Balance at Sep. 30, 2022	$ 32,511,995	$ 0	$ 1,138,096	$ 447,134	$ 34,848,863	$ (3,922,098)
Common Stock Shares at Sep. 30, 2022	966,132		966,132
Treasury Stock Shares at Sep. 30, 2022						171,964

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - Parenthetical - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Details
Cash dividends declared per share	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.66	$ 0.66

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net income	$ 4,180,277	$ 1,032,294
Adjustments to reconcile net income to net cash used in operating activities
Depreciation	960,139	990,983
(Gain) loss on sale of property and equipment	(4,736,096)	21,564
Deferred income taxes	(26,000)	(94,000)
Changes in operating assets and liabilities
Accounts receivable	(930,130)	(911,293)
Inventories	(1,401,692)	(2,591,976)
Other current assets	(75,326)	(7,890)
Accounts payable	204,795	710,141
Accrued wages and salaries	328,698	389,796
Other accrued expenses	1,209,687	34,353
Unearned revenue and customer deposits	(127,094)	(40,959)
Net cash used in operating activities	(412,742)	(466,987)
Cash flows from investing activities
Capital expenditures	(696,073)	(587,615)
Proceeds from the sale of property	5,038,240	7,800
Proceeds from certificates of deposit	1,245,000	4,084,000
Purchases of certificates of deposit	(1,245,000)	(2,092,000)
Net cash provided by investing activities	4,342,167	1,412,185
Cash flows from financing activities
Cash dividends paid	(637,647)	(637,647)
Net cash used in financing activities	(637,647)	(637,647)
Net increase in cash and cash equivalents	3,291,778	307,551
Cash and cash equivalents at beginning of period	2,036,954	2,567,731
Cash and cash equivalents at end of period	$ 5,328,732	$ 2,875,282

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 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 September 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 nine month period ended September 30, 2022 are not necessarily indicative of the results to be expected for the year.

Risks and Uncertainties

Risks and Uncertainties	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 third quarter of 2022, the Company did not realize any revenue related to such contracts. As of September 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 September 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 September 30, 2022: Automotive $ 4,813,646 $ 45,012 $ 4,858,658 Non-automotive 2,991,976 717,151 3,709,127 Total net sales $ 7,805,622 $ 762,163 $ 8,567,785 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 Nine Months Ended September 30, 2022: Automotive $ 14,268,638 $ 146,663 $ 14,415,301 Non-automotive 9,750,429 2,623,149 12,373,578 Total net sales $ 24,019,067 $ 2,769,812 $ 26,788,879 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 The following table presents revenue by segment, further disaggregated by location: Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2022: United States $ 6,268,813 $ 696,856 $ 6,965,669 Foreign 1,536,809 65,307 1,602,116 Total net sales $ 7,805,622 $ 762,163 $ 8,567,785 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 Nine Months Ended September 30, 2022: United States $ 19,825,721 $ 2,633,475 $ 22,459,196 Foreign 4,193,346 136,337 4,329,683 Total net sales $ 24,019,067 $ 2,769,812 $ 26,788,879 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

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Notes
Income Taxes	5. The Company’s effective tax rates were approximately 22.5% and 16.9% for the third quarter of 2022 and 2021, respectively, and 22.4% and 20.9% for the nine months ended September 30, 2022 and 2021, respectively. The Company’s federal income tax returns for the 2019, 2020 and 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 2019, 2020 and 2021 federal income tax returns will expire on September 15, 2023, 2024 and 2025, respectively. The Company’s state income tax returns for the 2019 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	9 Months Ended
	Sep. 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: September 30, 2022 December 31, 2021 Raw material $ 5,018,465 $ 4,645,923 Work-in-process 3,143,844 2,181,457 Finished goods 2,395,163 2,304,400 Inventories, gross 10,557,472 9,131,780 Valuation reserves (636,000) (612,000) Inventories, net $ 9,921,472 $ 8,519,780

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 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 September 30, 2022: Net sales $ 7,805,622 $ 762,163 0 $ 8,567,785 Depreciation 281,842 33,363 4,086 319,291 Segment operating profit 350,536 92,977 0 443,513 Selling and administrative expenses 0 0 (565,740) (565,740) Gain on sale of property 0 0 4,738,394 4,738,394 Interest income 0 0 4,893 4,893 Income before income taxes $ 4,621,060 Capital expenditures 462,445 0 21,925 484,370 Segment assets: Accounts receivable, net 6,185,810 392,304 0 6,578,114 Inventories, net 8,549,836 1,371,636 0 9,921,472 Property, plant and equipment, net 9,575,293 1,333,816 998,545 11,907,654 Other assets 0 0 8,491,734 8,491,734 $ 36,898,974 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 Nine Months Ended September 30, 2022: Net sales $ 24,019,067 $ 2,769,812 0 $ 26,788,879 Depreciation 845,524 100,089 14,526 960,139 Segment operating profit 1,685,574 516,367 0 2,201,941 Selling and administrative expenses 0 0 (1,562,804) (1,562,804) Gain on sale of property 0 0 4,738,394 4,738,394 Interest income 0 0 8,746 8,746 Income before income taxes $ 5,386,277 Capital expenditures 597,991 0 98,082 696,073 Nine Months Ended September 30, 2021: Net sales $ 22,843,341 $ 3,381,729 0 $ 26,225,070 Depreciation 847,037 100,600 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

Additional Financial Informatio

Additional Financial Information Disclosure	9 Months Ended
	Sep. 30, 2022
Notes
Additional Financial Information Disclosure	8. On August 12, 2022, the Company entered into a Purchase and Sale Agreement (the “PSA”) with Frontenac Properties LLC (the “Purchaser”) pursuant to which the Company agreed, subject to the terms and conditions of the PSA, to sell its facility in Naperville, Illinois, in which the Company headquarters and warehouse space are located, to the Purchaser. On September 27, 2022, the Company’s sale of the facility to the Purchaser was completed for a selling price of $5,350,000 in cash, less customary closing costs. The net gain on the transaction was $4,738,394. A portion of the net proceeds was invested in U.S. Treasury bills and included in cash and cash equivalents on September 30, 2022. Concurrently with the completion of the sale of the Naperville facility, the Company and the Purchaser entered into a lease agreement pursuant to which the Company will lease the warehouse portion of the Naperville facility from the Purchaser until December 31, 2022 and the office portion until June 30, 2023. The monthly rent payable by the Company under the lease is $12,500 for the period from the closing until December 31, 2022 and $8,500 for the period from January 1, 2023 to June 30, 2023. The Company has adopted the practical expedient for short-term leases under ASC 842 which allows for leases of 12 months or less to be expensed on a straight-line basis over the lease term without reporting on the balance sheet.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 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 September 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 nine month period ended September 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 third quarter of 2022, the Company did not realize any revenue related to such contracts. As of September 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 September 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 22.5% and 16.9% for the third quarter of 2022 and 2021, respectively, and 22.4% and 20.9% for the nine months ended September 30, 2022 and 2021, respectively. The Company’s federal income tax returns for the 2019, 2020 and 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 2019, 2020 and 2021 federal income tax returns will expire on September 15, 2023, 2024 and 2025, respectively. The Company’s state income tax returns for the 2019 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
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, 2022
Location
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2022: United States $ 6,268,813 $ 696,856 $ 6,965,669 Foreign 1,536,809 65,307 1,602,116 Total net sales $ 7,805,622 $ 762,163 $ 8,567,785 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 Nine Months Ended September 30, 2022: United States $ 19,825,721 $ 2,633,475 $ 22,459,196 Foreign 4,193,346 136,337 4,329,683 Total net sales $ 24,019,067 $ 2,769,812 $ 26,788,879 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
End Market
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2022: Automotive $ 4,813,646 $ 45,012 $ 4,858,658 Non-automotive 2,991,976 717,151 3,709,127 Total net sales $ 7,805,622 $ 762,163 $ 8,567,785 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 Nine Months Ended September 30, 2022: Automotive $ 14,268,638 $ 146,663 $ 14,415,301 Non-automotive 9,750,429 2,623,149 12,373,578 Total net sales $ 24,019,067 $ 2,769,812 $ 26,788,879 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

Inventories_ Inventories (Table

Inventories: Inventories (Tables)	9 Months Ended
	Sep. 30, 2022
Tables/Schedules
Inventories	September 30, 2022 December 31, 2021 Raw material $ 5,018,465 $ 4,645,923 Work-in-process 3,143,844 2,181,457 Finished goods 2,395,163 2,304,400 Inventories, gross 10,557,472 9,131,780 Valuation reserves (636,000) (612,000) Inventories, net $ 9,921,472 $ 8,519,780

Segment Reporting_ Schedule of

Segment Reporting: Schedule of Segment Reporting by Segment (Tables)	9 Months Ended
	Sep. 30, 2022
Tables/Schedules
Schedule of Segment Reporting by Segment	Fastener Assembly Equipment Other Consolidated Three Months Ended September 30, 2022: Net sales $ 7,805,622 $ 762,163 0 $ 8,567,785 Depreciation 281,842 33,363 4,086 319,291 Segment operating profit 350,536 92,977 0 443,513 Selling and administrative expenses 0 0 (565,740) (565,740) Gain on sale of property 0 0 4,738,394 4,738,394 Interest income 0 0 4,893 4,893 Income before income taxes $ 4,621,060 Capital expenditures 462,445 0 21,925 484,370 Segment assets: Accounts receivable, net 6,185,810 392,304 0 6,578,114 Inventories, net 8,549,836 1,371,636 0 9,921,472 Property, plant and equipment, net 9,575,293 1,333,816 998,545 11,907,654 Other assets 0 0 8,491,734 8,491,734 $ 36,898,974 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 Nine Months Ended September 30, 2022: Net sales $ 24,019,067 $ 2,769,812 0 $ 26,788,879 Depreciation 845,524 100,089 14,526 960,139 Segment operating profit 1,685,574 516,367 0 2,201,941 Selling and administrative expenses 0 0 (1,562,804) (1,562,804) Gain on sale of property 0 0 4,738,394 4,738,394 Interest income 0 0 8,746 8,746 Income before income taxes $ 5,386,277 Capital expenditures 597,991 0 98,082 696,073 Nine Months Ended September 30, 2021: Net sales $ 22,843,341 $ 3,381,729 0 $ 26,225,070 Depreciation 847,037 100,600 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

Revenue_ Disaggregation of Re_2

Revenue: Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue	$ 8,567,785	$ 8,555,731	$ 26,788,879	$ 26,225,070
UNITED STATES
Revenue	6,965,669	7,281,972	22,459,196	21,909,991
Non-US
Revenue	1,602,116	1,273,759	4,329,683	4,315,079
Automotive
Revenue	4,858,658	4,287,542	14,415,301	13,511,053
Nonautomotive
Revenue	3,709,127	4,268,189	12,373,578	12,714,017
Fastener
Revenue	7,805,622	7,552,619	24,019,067	22,843,341
Fastener | UNITED STATES
Revenue	6,268,813	6,300,067	19,825,721	18,589,576
Fastener | Non-US
Revenue	1,536,809	1,252,552	4,193,346	4,253,765
Fastener | Automotive
Revenue	4,813,646	4,259,544	14,268,638	13,410,100
Fastener | Nonautomotive
Revenue	2,991,976	3,293,075	9,750,429	9,433,241
Assembly Equipment
Revenue	762,163	1,003,112	2,769,812	3,381,729
Assembly Equipment | UNITED STATES
Revenue	696,856	981,905	2,633,475	3,320,415
Assembly Equipment | Non-US
Revenue	65,307	21,207	136,337	61,314
Assembly Equipment | Automotive
Revenue	45,012	27,998	146,663	100,953
Assembly Equipment | Nonautomotive
Revenue	$ 717,151	$ 975,114	$ 2,623,149	$ 3,280,776

Inventories_ Inventories (Detai

Inventories: Inventories (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Details
Raw material	$ 5,018,465	$ 4,645,923
Work-in-process	3,143,844	2,181,457
Finished goods	2,395,163	2,304,400
Inventories, gross	10,557,472	9,131,780
Valuation reserves	(636,000)	(612,000)
Inventories, net	$ 9,921,472	$ 8,519,780

Segment Reporting_ Schedule o_2

Segment Reporting: Schedule of Segment Reporting by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Net sales	$ 8,567,785	$ 8,555,731	$ 26,788,879	$ 26,225,070
Depreciation			960,139	990,983
Gain on sale of property	4,738,394	0	4,738,394	0
Accounts receivable - Less allowances of $162,000 and $170,000, respectively	6,578,114		6,578,114		$ 5,647,984
Inventories, net	9,921,472		9,921,472		8,519,780
Net property, plant and equipment	11,907,654		11,907,654		$ 12,473,864
Fastener
Net sales	7,805,622	7,552,619	24,019,067	22,843,341
Depreciation	281,842	291,512	845,524	847,037
Segment operating profit	350,536	480,288	1,685,574	1,982,084
Selling and Administrative Expenses	0	0	0	0
Gain on sale of property	0		0
Interest income	0	0	0	0
Capital expenditures	462,445	77,007	597,991	410,281
Accounts receivable - Less allowances of $162,000 and $170,000, respectively	6,185,810	5,623,045	6,185,810	5,623,045
Inventories, net	8,549,836	6,553,617	8,549,836	6,553,617
Net property, plant and equipment	9,575,293	9,986,600	9,575,293	9,986,600
Other Assets	0	0	0	0
Assembly Equipment
Net sales	762,163	1,003,112	2,769,812	3,381,729
Depreciation	33,363	33,534	100,089	100,600
Segment operating profit	92,977	215,869	516,367	852,571
Selling and Administrative Expenses	0	0	0	0
Gain on sale of property	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	392,304	451,698	392,304	451,698
Inventories, net	1,371,636	1,191,653	1,371,636	1,191,653
Net property, plant and equipment	1,333,816	1,468,262	1,333,816	1,468,262
Other Assets	0	0	0	0
Unallocated Corporate
Net sales	0	0	0	0
Depreciation	4,086	5,448	14,526	16,346
Segment operating profit	0	0	0	0
Selling and Administrative Expenses	(565,740)	(491,547)	(1,562,804)	(1,547,845)
Gain on sale of property	4,738,394		4,738,394
Interest income	4,893	3,049	8,746	17,484
Capital expenditures	21,925	165,395	98,082	177,334
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	998,545	1,263,290	998,545	1,263,290
Other Assets	$ 8,491,734	$ 6,093,884	$ 8,491,734	$ 6,093,884