Chicago Rivet & Machine (CVR) 10-Q 7 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Details
Registrant CIK	0000019871
Fiscal Year End	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	2023
Document Fiscal Period Focus	Q3
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 2,362,982	$ 4,045,101
Certificates of deposit	200,000	2,691,000
Accounts receivable - Less allowances of $146,000 and $160,000, respectively	5,806,308	4,975,137
Inventories, net	8,795,196	9,121,230
Prepaid income taxes	616,520	509,119
Other current assets	412,899	422,747
Total current assets	18,193,905	21,764,334
Property, Plant and Equipment
Land and improvements	1,510,513	1,510,513
Buildings and improvements	6,835,619	6,758,266
Production equipment and other	37,890,318	37,080,762
Property, Plant and Equipment, Gross	46,236,450	45,349,541
Less accumulated depreciation	34,345,225	33,487,748
Net property, plant and equipment	11,891,225	11,861,793
Total assets	30,085,130	33,626,127
Current Liabilities
Accounts payable	1,007,802	697,235
Accrued wages and salaries	778,941	462,332
Other accrued expenses	147,475	327,961
Unearned revenue and customer deposits	300,025	203,717
Total current liabilities	2,234,243	1,691,245
Deferred income taxes	244,485	948,084
Total liabilities	2,478,728	2,639,329
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	29,943,270	33,323,666
Treasury stock, 171,964 shares at cost	(3,922,098)	(3,922,098)
Total shareholders' equity	27,606,402	30,986,798
Total liabilities and shareholders' equity	$ 30,085,130	$ 33,626,127

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets - Parenthetical - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Accounts Receivable, Allowance for Credit Loss, Current	$ 146,000	$ 160,000
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 Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Condensed Consolidated Statements of Operations (Unaudited)
Net sales	$ 7,946,172	$ 8,567,785	$ 24,726,828	$ 26,788,879
Cost of goods sold	7,905,019	7,447,877	24,537,208	22,366,372
Gross profit	41,153	1,119,908	189,620	4,422,507
Operating (income) expenses
Selling and administrative expenses	1,273,175	1,250,385	3,890,335	3,809,970
Gain on sale of property	0	(4,738,394)	0	(4,738,394)
Total operating (income) expenses	1,273,175	(3,488,009)	3,890,335	(928,424)
Operating profit (loss)	(1,232,022)	4,607,917	(3,700,715)	5,350,931
Other income	16,980	13,143	83,030	35,346
Income (loss) before income taxes	(1,215,042)	4,621,060	(3,617,685)	5,386,277
Provision (benefit) for income taxes	(251,000)	1,042,000	(759,000)	1,206,000
Net Income (loss)	$ (964,042)	$ 3,579,060	$ (2,858,685)	$ 4,180,277
Per share data
Basic net income (loss) per share	$ (1)	$ 3.71	$ (2.96)	$ 4.33
Diluted net income (loss) per share	$ (1)	$ 3.71	$ (2.96)	$ 4.33
Basic	966,132	966,132	966,132	966,132
Diluted	966,132	966,132	966,132	966,132
Cash dividends declared per share	$ 0.10	$ 0.22	$ 0.54	$ 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, Common
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
Treasury Stock Shares at Dec. 31, 2021						171,964
Net Income (loss)	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
Treasury Stock Shares at Dec. 31, 2021						171,964
Net Income (loss)	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
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 (loss)	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 (loss)	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
Treasury Stock Shares at Sep. 30, 2022						171,964
Beginning Balance at Dec. 31, 2022	$ 30,986,798	0	$ 1,138,096	447,134	33,323,666	$ (3,922,098)
Common Stock Shares at Dec. 31, 2022	966,132		966,132
Treasury Stock Shares at Dec. 31, 2022						171,964
Net Income (loss)	$ (583,137)				(583,137)
Dividends declared	(212,549)				(212,549)
Ending Balance at Mar. 31, 2023	30,191,112	0	$ 1,138,096	447,134	32,527,980	$ (3,922,098)
Common Stock Shares at Mar. 31, 2023			966,132
Treasury Stock Shares at Mar. 31, 2023						171,964
Beginning Balance at Dec. 31, 2022	$ 30,986,798	0	$ 1,138,096	447,134	33,323,666	$ (3,922,098)
Common Stock Shares at Dec. 31, 2022	966,132		966,132
Treasury Stock Shares at Dec. 31, 2022						171,964
Net Income (loss)	$ (2,858,685)
Ending Balance at Sep. 30, 2023	$ 27,606,402	0	$ 1,138,096	447,134	29,943,270	$ (3,922,098)
Common Stock Shares at Sep. 30, 2023	966,132		966,132
Treasury Stock Shares at Sep. 30, 2023						171,964
Beginning Balance at Mar. 31, 2023	$ 30,191,112	0	$ 1,138,096	447,134	32,527,980	$ (3,922,098)
Common Stock Shares at Mar. 31, 2023			966,132
Treasury Stock Shares at Mar. 31, 2023						171,964
Net Income (loss)	(1,311,506)				(1,311,506)
Dividends declared	(212,549)				(212,549)
Ending Balance at Jun. 30, 2023	28,667,057	0	$ 1,138,096	447,134	31,003,925	$ (3,922,098)
Common Stock Shares at Jun. 30, 2023			966,132
Treasury Stock Shares at Jun. 30, 2023						171,964
Net Income (loss)	(964,042)				(964,042)
Dividends declared	(96,613)				(96,613)
Ending Balance at Sep. 30, 2023	$ 27,606,402	$ 0	$ 1,138,096	$ 447,134	$ 29,943,270	$ (3,922,098)
Common Stock Shares at Sep. 30, 2023	966,132		966,132
Treasury Stock Shares at Sep. 30, 2023						171,964

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - Parenthetical - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Condensed Consolidated Statements of Shareholders' Equity (Unaudited)
Cash dividends declared per share	$ 0.10	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.54	$ 0.66

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net Income (loss)	$ (2,858,685)	$ 4,180,277
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation	920,430	960,139
Gain on sale of property and equipment	(31,500)	(4,736,096)
Deferred income taxes	(703,599)	(26,000)
Changes in operating assets and liabilities
Accounts receivable	(831,171)	(930,130)
Inventories	326,034	(1,401,692)
Other current assets	(97,553)	(75,326)
Accounts payable	310,567	204,795
Accrued wages and salaries	316,609	328,698
Other accrued expenses	(180,486)	1,209,687
Unearned revenue and customer deposits	96,308	(127,094)
Net cash used in operating activities	(2,733,046)	(412,742)
Cash flows from investing activities
Capital expenditures	(949,862)	(696,073)
Proceeds from the sale of property	31,500	5,038,240
Proceeds from certificates of deposit	2,591,000	1,245,000
Purchases of certificates of deposit	(100,000)	(1,245,000)
Net cash provided by investing activities	1,572,638	4,342,167
Cash flows from financing activities
Cash dividends paid	(521,711)	(637,647)
Net cash used in financing activities	(521,711)	(637,647)
Net increase (decrease) in cash and cash equivalents	(1,682,119)	3,291,778
Cash and cash equivalents at beginning of period	4,045,101	2,036,954
Cash and cash equivalents at end of period	$ 2,362,982	$ 5,328,732

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2023
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, 2023 (unaudited) and December 31, 2022 (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, 2022. 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, 2023 are not necessarily indicative of the results to be expected for the year. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and in November 2018 issued an amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 and ASU 2018-19 should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this ASU on January 1, 2023, using the modified retrospective approach. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the condensed consolidated financial statements.

Risks and Uncertainties

Risks and Uncertainties	9 Months Ended
	Sep. 30, 2023
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. The Company has established an allowance for accounts that may become uncollectible in the future. This estimated allowance is based in part on management's evaluation of the financial condition of the customer and historical experience. The Company monitors its accounts receivable and charges to expense an amount equal to its estimate of potential credit losses. The Company considers a number of factors in determining its estimates, including the length of time its trade accounts receivable are past due, the Company's previous loss history and the customer's current ability to pay its obligation. The Company also considers current economic conditions, the economic outlook and industry-specific factors in its evaluation. Accounts receivable balances are charged off against the allowance when it is determined that the receivable will not be recovered.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
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, 2023
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 2023, the Company realized revenue of $161,594 related to such contracts and has a remaining performance obligation of $303,906 which is expected to be recognized over the next six months. 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, 2023 and December 31, 2022 reserves for warranty claims were not material. Cash received by the Company prior to transfer of control 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, 2023: Automotive $ 5,184,547 $ 12,363 $ 5,196,910 Non-automotive 1,792,894 956,368 2,749,262 Total net sales $ 6,977,441 $ 968,731 $ 7,946,172 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 Nine Months Ended September 30, 2023: Automotive $ 15,150,117 $ 95,464 $ 15,245,581 Non-automotive 7,045,250 2,435,997 9,481,247 Total net sales $ 22,195,367 $ 2,531,461 $ 24,726,828 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 The following table presents revenue by segment, further disaggregated by location: Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2023: United States $ 5,398,688 $ 961,618 $ 6,360,306 Foreign 1,578,753 7,113 1,585,866 Total net sales $ 6,977,441 $ 968,731 $ 7,946,172 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 Nine Months Ended September 30, 2023: United States $ 17,927,910 $ 2,402,734 $ 20,248,872 Foreign 4,267,457 128,727 4,477,956 Total net sales $ 22,195,367 $ 2,531,461 $ 24,726,828 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

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Notes
Income Taxes	5. The Company’s effective tax rates were approximately (20.7)% and 22.5% for the third quarter of 2023 and 2022, respectively, and (21.0)% and 22.4% for the nine months ended September 30, 2023 and 2022, respectively. The Company’s federal income tax returns for the 2020, 2021 and 2022 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 2020, 2021 and 2022 federal income tax returns will expire on September 15, 2024, 2025 and 2026, respectively. The Company’s state income tax returns for the 2020 through 2022 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2026. 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, 2023
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, 2023 December 31, 2022 Raw material $ 3,460,660 $ 4,460,071 Work-in-process 3,073,621 2,747,427 Finished goods 2,801,915 2,534,732 Inventories, gross 9,336,196 9,742,230 Valuation reserves (541,000) (621,000) Inventories, net $ 8,795,196 $ 9,121,230

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2023
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, 2023: Net sales $ 6,977,441 $ 968,731 0 $ 7,946,172 Depreciation 276,989 30,732 602 308,323 Segment operating loss (773,213) 166,927 0 (606,286) Selling and administrative expenses 0 0 (625,701) (625,701) Interest income 0 0 16,945 16,945 Loss before income taxes $ (1,215,042) Capital expenditures 189,614 0 0 189,614 Segment assets: Accounts receivable, net 5,410,548 395,760 0 5,806,308 Inventories, net 7,269,490 1,525,706 0 8,795,196 Property, plant and equipment, net 9,672,334 1,211,301 1,007,590 11,891,225 Other assets 0 0 3,592,401 3,592,401 $ 30,085,130 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 Nine Months Ended September 30, 2023: Net sales $ 22,195,367 $ 2,531,461 0 $ 24,726,828 Depreciation 822,304 92,196 5,930 920,430 Segment operating loss (2,294,932) 443,408 0 (1,851,524) Selling and administrative expenses 0 0 (1,845,437) (1,845,437) Interest income 0 0 79,276 79,276 Loss before income taxes $ (3,617,685) Capital expenditures 932,309 0 17,553 949,862 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

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
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, 2023 (unaudited) and December 31, 2022 (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, 2022. 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, 2023 are not necessarily indicative of the results to be expected for the year. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and in November 2018 issued an amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 and ASU 2018-19 should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this ASU on January 1, 2023, using the modified retrospective approach. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the condensed consolidated financial statements.
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. The Company has established an allowance for accounts that may become uncollectible in the future. This estimated allowance is based in part on management's evaluation of the financial condition of the customer and historical experience. The Company monitors its accounts receivable and charges to expense an amount equal to its estimate of potential credit losses. The Company considers a number of factors in determining its estimates, including the length of time its trade accounts receivable are past due, the Company's previous loss history and the customer's current ability to pay its obligation. The Company also considers current economic conditions, the economic outlook and industry-specific factors in its evaluation. Accounts receivable balances are charged off against the allowance when it is determined that the receivable will not be recovered.
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 2023, the Company realized revenue of $161,594 related to such contracts and has a remaining performance obligation of $303,906 which is expected to be recognized over the next six months. 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, 2023 and December 31, 2022 reserves for warranty claims were not material. Cash received by the Company prior to transfer of control 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 (20.7)% and 22.5% for the third quarter of 2023 and 2022, respectively, and (21.0)% and 22.4% for the nine months ended September 30, 2023 and 2022, respectively. The Company’s federal income tax returns for the 2020, 2021 and 2022 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 2020, 2021 and 2022 federal income tax returns will expire on September 15, 2024, 2025 and 2026, respectively. The Company’s state income tax returns for the 2020 through 2022 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2026. 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.
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, 2023
Location
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2023: United States $ 5,398,688 $ 961,618 $ 6,360,306 Foreign 1,578,753 7,113 1,585,866 Total net sales $ 6,977,441 $ 968,731 $ 7,946,172 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 Nine Months Ended September 30, 2023: United States $ 17,927,910 $ 2,402,734 $ 20,248,872 Foreign 4,267,457 128,727 4,477,956 Total net sales $ 22,195,367 $ 2,531,461 $ 24,726,828 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
End Market
Disaggregation of Revenue	Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2023: Automotive $ 5,184,547 $ 12,363 $ 5,196,910 Non-automotive 1,792,894 956,368 2,749,262 Total net sales $ 6,977,441 $ 968,731 $ 7,946,172 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 Nine Months Ended September 30, 2023: Automotive $ 15,150,117 $ 95,464 $ 15,245,581 Non-automotive 7,045,250 2,435,997 9,481,247 Total net sales $ 22,195,367 $ 2,531,461 $ 24,726,828 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

Inventories_ Inventories (Table

Inventories: Inventories (Tables)	9 Months Ended
	Sep. 30, 2023
Tables/Schedules
Inventories	September 30, 2023 December 31, 2022 Raw material $ 3,460,660 $ 4,460,071 Work-in-process 3,073,621 2,747,427 Finished goods 2,801,915 2,534,732 Inventories, gross 9,336,196 9,742,230 Valuation reserves (541,000) (621,000) Inventories, net $ 8,795,196 $ 9,121,230

Segment Reporting_ Schedule of

Segment Reporting: Schedule of Segment Reporting by Segment (Tables)	9 Months Ended
	Sep. 30, 2023
Tables/Schedules
Schedule of Segment Reporting by Segment	Fastener Assembly Equipment Other Consolidated Three Months Ended September 30, 2023: Net sales $ 6,977,441 $ 968,731 0 $ 7,946,172 Depreciation 276,989 30,732 602 308,323 Segment operating loss (773,213) 166,927 0 (606,286) Selling and administrative expenses 0 0 (625,701) (625,701) Interest income 0 0 16,945 16,945 Loss before income taxes $ (1,215,042) Capital expenditures 189,614 0 0 189,614 Segment assets: Accounts receivable, net 5,410,548 395,760 0 5,806,308 Inventories, net 7,269,490 1,525,706 0 8,795,196 Property, plant and equipment, net 9,672,334 1,211,301 1,007,590 11,891,225 Other assets 0 0 3,592,401 3,592,401 $ 30,085,130 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 Nine Months Ended September 30, 2023: Net sales $ 22,195,367 $ 2,531,461 0 $ 24,726,828 Depreciation 822,304 92,196 5,930 920,430 Segment operating loss (2,294,932) 443,408 0 (1,851,524) Selling and administrative expenses 0 0 (1,845,437) (1,845,437) Interest income 0 0 79,276 79,276 Loss before income taxes $ (3,617,685) Capital expenditures 932,309 0 17,553 949,862 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

Revenue_ Revenue (Details)

Revenue: Revenue (Details)	3 Months Ended
	Sep. 30, 2023 USD ($)
Details
Revenue Recognized, Performance Obligation	$ 161,594
Revenue, Remaining Performance Obligation	$ 303,906

Revenue_ Disaggregation of Re_2

Revenue: Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue	$ 7,946,172	$ 8,567,785	$ 24,726,828	$ 26,788,879
UNITED STATES
Revenue	6,360,306	6,965,669	20,248,872	22,459,196
Non-US
Revenue	1,585,866	1,602,116	4,477,956	4,329,683
Automotive
Revenue	5,196,910	4,858,658	15,245,581	14,415,301
Nonautomotive
Revenue	2,749,262	3,709,127	9,481,247	12,373,578
Fastener
Revenue	6,977,441	7,805,622	22,195,367	24,019,067
Fastener | UNITED STATES
Revenue	5,398,688	6,268,813	17,927,910	19,825,721
Fastener | Non-US
Revenue	1,578,753	1,536,809	4,267,457	4,193,346
Fastener | Automotive
Revenue	5,184,547	4,813,646	15,150,117	14,268,638
Fastener | Nonautomotive
Revenue	1,792,894	2,991,976	7,045,250	9,750,429
Assembly Equipment
Revenue	968,731	762,163	2,531,461	2,769,812
Assembly Equipment | UNITED STATES
Revenue	961,618	696,856	2,402,734	2,633,475
Assembly Equipment | Non-US
Revenue	7,113	65,307	128,727	136,337
Assembly Equipment | Automotive
Revenue	12,363	45,012	95,464	146,663
Assembly Equipment | Nonautomotive
Revenue	$ 956,368	$ 717,151	$ 2,435,997	$ 2,623,149

Inventories_ Inventories (Detai

Inventories: Inventories (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Details
Raw material	$ 3,460,660	$ 4,460,071
Work-in-process	3,073,621	2,747,427
Finished goods	2,801,915	2,534,732
Inventories, gross	9,336,196	9,742,230
Valuation reserves	(541,000)	(621,000)
Inventories, net	$ 8,795,196	$ 9,121,230

Segment Reporting_ Schedule o_2

Segment Reporting: Schedule of Segment Reporting by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Net sales	$ 7,946,172	$ 8,567,785	$ 24,726,828	$ 26,788,879
Depreciation			920,430	960,139
Accounts receivable - Less allowances of $146,000 and $160,000, respectively	5,806,308		5,806,308		$ 4,975,137
Inventories, net	8,795,196		8,795,196		9,121,230
Net property, plant and equipment	11,891,225		11,891,225		$ 11,861,793
Gain on sale of property	0	4,738,394	0	4,738,394
Fastener
Net sales	6,977,441	7,805,622	22,195,367	24,019,067
Depreciation	276,989	281,842	822,304	845,524
Segment operating profit	(773,213)	350,536	(2,294,932)	1,685,574
Selling and Administrative Expenses	0	0	0	0
Interest income	0	0	0	0
Capital expenditures	189,614	462,445	932,309	597,991
Accounts receivable - Less allowances of $146,000 and $160,000, respectively	5,410,548	6,185,810	5,410,548	6,185,810
Inventories, net	7,269,490	8,549,836	7,269,490	8,549,836
Net property, plant and equipment	9,672,334	9,575,293	9,672,334	9,575,293
Other Assets	0	0	0	0
Gain on sale of property		0		0
Assembly Equipment
Net sales	968,731	762,163	2,531,461	2,769,812
Depreciation	30,732	33,363	92,196	100,089
Segment operating profit	166,927	92,977	443,408	516,367
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 $146,000 and $160,000, respectively	395,760	392,304	395,760	392,304
Inventories, net	1,525,706	1,371,636	1,525,706	1,371,636
Net property, plant and equipment	1,211,301	1,333,816	1,211,301	1,333,816
Other Assets	0	0	0	0
Gain on sale of property		0		0
Unallocated Corporate
Net sales	0	0	0	0
Depreciation	602	4,086	5,930	14,526
Segment operating profit	0	0	0	0
Selling and Administrative Expenses	(625,701)	(565,740)	(1,845,437)	(1,562,804)
Interest income	16,945	4,893	79,276	8,746
Capital expenditures	0	21,925	17,553	98,082
Accounts receivable - Less allowances of $146,000 and $160,000, respectively	0	0	0	0
Inventories, net	0	0	0	0
Net property, plant and equipment	1,007,590	998,545	1,007,590	998,545
Other Assets	$ 3,592,401	8,491,734	$ 3,592,401	8,491,734
Gain on sale of property		$ 4,738,394		$ 4,738,394