Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 18, 2024 | Jun. 30, 2023 | |
Details | |||
Registrant CIK | 0000019871 | ||
Fiscal Year End | --12-31 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 000-01227 | ||
Entity Registrant Name | CHICAGO RIVET & MACHINE CO | ||
Entity Incorporation, State or Country Code | IL | ||
Entity Tax Identification Number | 36-0904920 | ||
Entity Address, Address Line One | 901 Frontenac Road | ||
Entity Address, City or Town | Naperville | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60563 | ||
City Area Code | 630 | ||
Local Phone Number | 357-8500 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | CVR | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 24,848,915 | ||
Entity Common Stock, Shares Outstanding | 966,132 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Auditor Firm ID | 173 | ||
Auditor Name | Crowe LLP | ||
Auditor Location | Oak Brook, Illinois |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and Cash Equivalents | $ 1,387,075 | $ 4,045,101 |
Short-Term Investments | 1,771,120 | 2,691,000 |
Accounts Receivable - Less allowances of $160,000 | 4,275,882 | 4,975,137 |
Contract Assets | 118,301 | 0 |
Inventories, net | 7,327,653 | 9,121,230 |
Prepaid Income Taxes | 580,287 | 509,119 |
Other Current Assets | 380,562 | 422,747 |
Total Current Assets | 15,840,880 | 21,764,334 |
Property, Plant and Equipment, net | 11,665,082 | 11,861,793 |
Deferred Income Taxes, net | 324,943 | 0 |
Total Assets | 27,830,905 | 33,626,127 |
Current Liabilities | ||
Accounts Payable | 788,974 | 697,235 |
Accrued Wages and Salaries | 514,900 | 462,332 |
Other Accrued Expenses | 129,963 | 327,961 |
Unearned Revenue and Customer Deposits | 430,179 | 203,717 |
Total Current Liabilities | 1,864,016 | 1,691,245 |
Deferred Income Taxes, net | 0 | 948,084 |
Total Liabilities | 1,864,016 | 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 | 28,303,757 | 33,323,666 |
Treasury Stock, 171,964 Shares at cost | (3,922,098) | (3,922,098) |
Total Shareholders' Equity | 25,966,889 | 30,986,798 |
Total Liabilities and Shareholders' Equity | $ 27,830,905 | $ 33,626,127 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Operations | ||
Net Sales | $ 31,507,722 | $ 33,646,033 |
Cost of Goods Sold | 32,107,312 | 29,830,710 |
Gross Profit (Loss) | (599,590) | 3,815,323 |
Operating (Income) Expenses | ||
Selling and Administrative Expenses | 5,237,656 | 4,992,521 |
Gain on Sale of Property | 0 | (4,738,394) |
Total Operating Expenses | 5,237,656 | 254,127 |
Operating Profit (Loss) | (5,837,246) | 3,561,196 |
Other Income | 108,234 | 91,433 |
Income (Loss) Before Income Taxes | (5,729,012) | 3,652,629 |
Provision (Benefit) for Income Taxes | (1,327,428) | 785,000 |
Net Income (Loss) | $ (4,401,584) | $ 2,867,629 |
Per Share Data | ||
Basic net income (loss) per share | $ (4.56) | $ 2.97 |
Diluted net income (loss) per share | $ (4.56) | $ 2.97 |
Basic | 966,132 | 966,132 |
Diluted | 966,132 | 966,132 |
Cash Dividends Declared Per Share | $ 0.64 | $ 0.88 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - 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) | 2,867,629 | 2,867,629 | ||||
Dividends Declared | (850,196) | (850,196) | ||||
Ending 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 | ||||
Net Income (Loss) | $ (4,401,584) | (4,401,584) | ||||
Dividends Declared | (618,325) | (618,325) | ||||
Ending Balance at Dec. 31, 2023 | $ 25,966,889 | $ 0 | $ 1,138,096 | $ 447,134 | $ 28,303,757 | $ (3,922,098) |
Common Stock Shares at Dec. 31, 2023 | 966,132 | 966,132 | ||||
Treasury Stock Shares at Dec. 31, 2023 | 171,964 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity - Parenthetical - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Shareholders' Equity | ||
Cash Dividends Declared Per Share | $ 0.64 | $ 0.88 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ (4,401,584) | $ 2,867,629 |
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities | ||
Depreciation and Amortization | 1,275,078 | 1,279,870 |
Gain on the Sale of Property and Equipment | (50,422) | (4,741,096) |
Deferred Income Taxes | (1,273,027) | 22,000 |
Changes in Operating Assets and Liabilities | ||
Accounts Receivable, net | 699,255 | 672,847 |
Contract Assets | (118,301) | 0 |
Inventories, net | 1,793,577 | (601,450) |
Other Current Assets and Prepaid Income Taxes | (28,983) | (585,190) |
Accounts Payable | 91,739 | 4,600 |
Accrued Wages and Salaries | 52,568 | (47,000) |
Other Accrued Expenses | (197,998) | (38,457) |
Unearned Revenue and Customer Deposits | 226,462 | (98,707) |
Net Cash Used in Operating Activities | (1,931,636) | (1,264,954) |
Cash Flows from Investing Activities | ||
Capital Expenditures | (1,078,367) | (969,943) |
Proceeds from the Sale of Property and Equipment | 50,422 | 5,043,240 |
Proceeds from Short-Term Investments | 2,691,000 | 1,495,000 |
Purchases of Short-Term Investments | (1,771,120) | (1,445,000) |
Net Cash Provided by (Used In) Investing Activities | (108,065) | 4,123,297 |
Cash Flows from Financing Activities | ||
Cash Dividends Paid | (618,325) | (850,196) |
Net Cash Used in Financing Activities | (618,325) | (850,196) |
Net Increase (Decrease) in Cash and Cash Equivalents | (2,658,026) | 2,008,147 |
Cash and Cash Equivalents | ||
Beginning of Year | 4,045,101 | 2,036,954 |
End of Year | 1,387,075 | 4,045,101 |
Cash Paid for Income Taxes | $ 0 | $ 1,271,679 |
1 - Nature of Business and Sign
1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
1 - Nature of Business and Significant Accounting Policies | 1 - Nature of Business and Significant Accounting Policies Nature of Business- A summary of the Company’s significant accounting policies follows: Principles of Consolidation- Revenue Recognition- Cash received by the Company prior to shipment is recorded as unearned revenue. 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 2023, the Company realized $342,328 of revenue related to such contracts, and has $123,172 for the remaining performance obligation under such contracts which the Company expects to recognize as revenue in the first quarter of 2024. Contract assets of $118,301 was recorded relating to these contracts. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. Credit Risk- Cash and Cash Equivalents and Short-Term Investments- Fair Value of Financial Instruments- Inventories- Property, Plant and Equipment- Asset Category Estimated Useful Life Land improvements…………….. 15 to 40 years Buildings and improvements…… 10 to 40 years Machinery and equipment……… 5 to 18 years Capitalized software costs……… 3 to 5 years Other equipment………………… 3 to 10 years The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. There were no triggering events requiring assessment of impairment as of December 31, 2023 and 2022. When properties are retired or sold, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss on disposition is recognized in current operations. Maintenance, repairs and minor betterments that do not improve the related asset or extend its useful life are charged to operations as incurred. Income Taxes— The Company applies a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. In the first step of the two-step process, the Company evaluates the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. In the second step, the Company measures the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2023 and 2022, the Company determined that there are no uncertain tax positions with a more than 50% likelihood of being realized upon settlement. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no such expenses in 2023 or 2022. The Company’s federal income tax returns for the 2020 through 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 are subject to examination by various state authorities with the latest closing period on October 31, 2026. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended. Segment Information- Net Income Per Share- Use of Estimates- Recent Accounting Pronouncements- In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose its significant segment expense categories and amounts for each reportable segment. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this ASU. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures providing investors with information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The new guidance is effective for annual periods beginning after December 31, 2024. The Company is evaluating the impact that it will have on our consolidated financial statements and disclosures. |
2 - Balance Sheet Details
2 - Balance Sheet Details | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
2 - Balance Sheet Details | 2 - Balance Sheet Details December 31, 2023 December 31, 2022 Inventories: Raw materials $ 2,878,869 $ 4,460,071 Work in process 2,374,795 2,747,427 Finished goods 2,614,989 2,534,732 7,868,653 9,742,230 Valuation reserves (541,000) (621,000) $ 7,327,653 $ 9,121,230 December 31, 2023 December 31, 2022 Property, Plant and Equipment, net: Land and improvements $ 1,510,513 $ 1,510,513 Buildings and improvements 6,835,619 6,818,066 Machinery and equipment 37,019,453 35,982,194 Capitalized software and other 933,449 1,038,768 46,299,034 45,349,541 Accumulated depreciation (34,633,952) (33,487,748) $ 11,665,082 $ 11,861,793 December 31, 2023 December 31, 2022 Other Accrued Expenses: Profit sharing plan contribution $ 0 $ 170,000 Property taxes 20,342 41,497 All other items 109,621 116,464 $ 129,963 $ 327,961 December 31, 2023 December 31, 2022 Allowance for Credit Losses: Balance at beginning of year $ 160,000 $ 170,000 Charges to statement of operations 13,804 (1,660) Write-offs, net of recoveries (13,804) (8,340) Balance at end of year $ 160,000 $ 160,000 December 31, 2023 December 31, 2022 Inventory Valuation Reserves: Balance at beginning of year $ 621,000 $ 612,000 Charges to statement of operations 143,233 17,070 Write-offs (223,233) (8,070) Balance at end of year $ 541,000 $ 621,000 |
3 - Income Taxes
3 - Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
3 - Income Taxes | 3 - Income Taxes— : 20 23 2022 Current: Federal $ (1,569) $ 723,000 State (52,832) 40,000 Deferred (1,273,027) 22,000 $ (1,327,428) $ 785,000 The following is a reconciliation of the statutory federal income tax rate to the actual effective tax rate: 2023 2022 Amount % Amount % Expected tax at U.S. statutory rate $ (1,203,000) (21.0) $ 767,000 21.0 Permanent differences (3,428) (0.1) (14,000) (0.4) State taxes, net of federal benefit (121,000) (2.1) 32,000 0.9 Income tax expense (benefit) $ (1,327,428) (23.2) $ 785,000 21.5 The deferred tax assets (liabilites) consist of the following: 20 23 2022 Depreciation and amortization $ (1,254,472) $ (1,216,451) Inventory 157,307 157,687 Accrued vacation 66,240 71,923 Allowance for credit losses 33,600 38,250 Net operating losses 1,262,621 0 Other, net 59,647 507 $ 324,943 $ (948,084) At December 31, 2023, the Company had federal net operating loss carryforwards of approximately $6,045,000. The net operating loss carryforwards are not subject to expiration, however are subject to annual utilization limitations for U.S. federal income tax purposes. The Company believes it is more-likely-than-not that its deferred tax assets will be realized, based primarily on its expectation of future taxable income and considering future reversals of existing taxable temporary differences. The Company reviews the need for a valuation allowance on a quarterly basis for each of its tax jurisdictions. |
4 - Profit Sharing Plan
4 - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
4 - Profit Sharing Plan | 4 - Profit Sharing Plan- |
5 - Other Income
5 - Other Income | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
5 - Other Income | 5 - Other Income- 20 23 2022 Interest income $ 103,230 $ 55,333 Other 5,004 36,100 $ 108,234 $ 91,433 |
6 - Segment Information
6 - Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
6 - Segment Information | 6 - Segment Information- Fastener Assembly Equipment Other Consolidated Year Ended December 31, 2023: Net Sales……………………………………… $ 28,161,362 $ 3,346,360 $ 0 $ 31,507,722 Depreciation……………………………………... 1,145,620 122,928 6,530 1,275,078 Segment operating profit (loss) ……………… (3,747,744) 549,156 0 (3,198,588) Selling and administrative expenses………….. 0 0 (2,638,658) (2,638,658) Other income…………………………………….. 0 0 108,234 108,234 Loss before income taxes…………………… (5,729,012) Capital expenditures……………………………. 1,041,896 5,235 31,236 1,078,367 Segment assets: Accounts receivable, net……………………... 3,994,372 281,510 0 4,275,882 Contract assets………………………………... 0 118,301 0 118,301 Inventories, net………………………………... 5,714,826 1,612,827 0 7,327,653 Property, plant and equipment, net…………. 9,458,605 1,185,804 1,020,673 11,665,082 Other assets…………………………………… 0 0 4,443,987 4,443,987 27,830,905 Year Ended December 31, 2022: Net Sales……………………………………… $ 30,291,547 $ 3,354,486 $ 0 $ 33,646,033 Depreciation……………………………………... 1,129,151 133,615 17,104 1,279,870 Segment operating profit……………………… 505,751 413,995 0 919,746 Selling and administrative expenses………….. 0 0 (2,096,944) (2,096,944) Gain on sale of property 4,738,394 4,738,394 Other income…………………………………….. 0 0 91,433 91,433 Income before income taxes…………………… 3,652,629 Capital expenditures……………………………. 868,654 3,207 98,082 969,943 Segment assets: Accounts receivable, net……………………... 4,683,620 291,517 0 4,975,137 Inventories, net………………………………... 7,766,703 1,354,527 0 9,121,230 Property, plant and equipment, net…………. 9,562,329 1,303,497 995,967 11,861,793 Other assets…………………………………… 0 0 7,667,967 7,667,967 33,626,127 The Company does not allocate certain selling and administrative expenses for internal reporting, thus, no allocation was made for these expenses for segment disclosure purposes. Segment assets reported internally are limited to accounts receivable, inventory and long-lived assets. Certain long-lived assets of one plant location are allocated between the two segments based on estimated plant utilization, as this plant serves both fastener and assembly equipment activities. Other assets are not allocated to segments internally and to do so would be impracticable. The following table presents revenue by segment, further disaggregated by end-market: Fastener Assembly Equipment Consolidated Year Ended December 31, 2023 : Automotive $ 19,297,188 $ 131,821 $ 19,429,009 Non-automotive 8,864,174 3,214,539 12,078,713 Total net sales $ 28,161,362 $ 3,346,360 $ 31,507,722 Year Ended December 31, 2022: Automotive $ 18,454,238 $ 209,735 $ 18,663,973 Non-automotive 11,837,309 3,144,751 14,982,060 Total net sales $ 30,291,547 $ 3,354,486 $ 33,646,033 The following table presents revenue by segment, further disaggregated by location: Fastener Assembly Equipment Consolidated Year Ended December 31, 20 23 : United States $ 22,635,244 $ 3,154,677 $ 25,789,921 Foreign 5,526,118 191,683 5,717,801 Total net sales $ 28,161,362 $ 3,346,360 $ 31,507,722 Year Ended December 31, 2022: United States $ 24,955,181 $ 3,202,729 $ 28,157,910 Foreign 5,336,366 151,757 5,488,123 Total net sales $ 30,291,547 $ 3,354,486 $ 33,646,033 Sales to one customer in the fastener segment accounted for 16% of consolidated revenues during 2023 and 15% in 2022. The accounts receivable balance for this customer accounted for 15% and 19% of consolidated accounts receivable as of December 31, 2023 and 2022, respectively. Sales to a second customer in the fastener segment accounted for 14% of consolidated revenues during 2023 and 2022. The accounts receivable balance for this customer accounted for 14% and 16% of consolidated accounts receivable as of December 31, 2023 and 2022, respectively. Sales to a third customer were 11% of consolidated revenue in 2023. The accounts receivable balance for this customer accounted for 20% of consolidated accounts receivable as of December 31, 2023. |
7 - Additional Financial Inform
7 - Additional Financial Information Disclosure | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
7 - Additional Financial Information Disclosure | 7 - Gain on Sale of Property - 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 leased the office and 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 was $12,500 for the period from the closing until December 31, 2022 and was $8,500 for the period from January 1, 2023 to June 30, 2023. For the period from July 1, 2023 through December 31, 2023 the lease was extended on a month to month basis at $8,500 per month. The Company 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. |
8 - Commitments and Contingenci
8 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
8 - Commitments and Contingencies | 8 - Commitments and Contingencies- The Company is, from time to time involved in litigation, including environmental claims, in the normal course of business. While it is not possible at this time to establish the ultimate amount of liability with respect to contingent liabilities, including those related to legal proceedings, management is of the opinion that the aggregate amount of any such liabilities, for which provision has not been made, will not have a material adverse effect on the Company's financial position. |
9 - Risks and Uncertainties for
9 - Risks and Uncertainties for Health Emergencies | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
9 - Risks and Uncertainties for Health Emergencies | 9. - Risks and Uncertainties for Health Emergencies. |
10 - Subsequent Events
10 - Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
10 - Subsequent Events | 10 - Subsequent Events- On January 1, 2024, the Company entered into a one-year lease agreement for the Naperville facility that extends through December 31, 2024 at the rate of $9,400 per month. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
Principles of Consolidation | Principles of Consolidation- |
Revenue Recognition | Revenue Recognition- Cash received by the Company prior to shipment is recorded as unearned revenue. 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 2023, the Company realized $342,328 of revenue related to such contracts, and has $123,172 for the remaining performance obligation under such contracts which the Company expects to recognize as revenue in the first quarter of 2024. Contract assets of $118,301 was recorded relating to these contracts. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. |
Credit Risk | Credit Risk- |
Cash and Cash Equivalents and Short-Term Investments | Cash and Cash Equivalents and Short-Term Investments- |
Fair Value of Financial Instruments | Fair Value of Financial Instruments- |
Inventories | Inventories- |
Property, Plant and Equipment | Property, Plant and Equipment- Asset Category Estimated Useful Life Land improvements…………….. 15 to 40 years Buildings and improvements…… 10 to 40 years Machinery and equipment……… 5 to 18 years Capitalized software costs……… 3 to 5 years Other equipment………………… 3 to 10 years The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. There were no triggering events requiring assessment of impairment as of December 31, 2023 and 2022. When properties are retired or sold, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss on disposition is recognized in current operations. Maintenance, repairs and minor betterments that do not improve the related asset or extend its useful life are charged to operations as incurred. |
Income Taxes | Income Taxes— The Company applies a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. In the first step of the two-step process, the Company evaluates the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. In the second step, the Company measures the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2023 and 2022, the Company determined that there are no uncertain tax positions with a more than 50% likelihood of being realized upon settlement. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no such expenses in 2023 or 2022. The Company’s federal income tax returns for the 2020 through 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 are subject to examination by various state authorities with the latest closing period on October 31, 2026. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended. |
Segment Information | Segment Information- |
Net Income Per Share | Net Income Per Share- |
Use of Estimates | Use of Estimates- |
Recent Accounting Pronouncements | Recent Accounting Pronouncements- In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose its significant segment expense categories and amounts for each reportable segment. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this ASU. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures providing investors with information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The new guidance is effective for annual periods beginning after December 31, 2024. The Company is evaluating the impact that it will have on our consolidated financial statements and disclosures. |
2 - Balance Sheet Details_ Inve
2 - Balance Sheet Details: Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Inventory | December 31, 2023 December 31, 2022 Inventories: Raw materials $ 2,878,869 $ 4,460,071 Work in process 2,374,795 2,747,427 Finished goods 2,614,989 2,534,732 7,868,653 9,742,230 Valuation reserves (541,000) (621,000) $ 7,327,653 $ 9,121,230 |
2 - Balance Sheet Details_ Prop
2 - Balance Sheet Details: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Property, Plant and Equipment | December 31, 2023 December 31, 2022 Property, Plant and Equipment, net: Land and improvements $ 1,510,513 $ 1,510,513 Buildings and improvements 6,835,619 6,818,066 Machinery and equipment 37,019,453 35,982,194 Capitalized software and other 933,449 1,038,768 46,299,034 45,349,541 Accumulated depreciation (34,633,952) (33,487,748) $ 11,665,082 $ 11,861,793 |
2 - Balance Sheet Details_ Othe
2 - Balance Sheet Details: Other Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Other Accrued Expenses | December 31, 2023 December 31, 2022 Other Accrued Expenses: Profit sharing plan contribution $ 0 $ 170,000 Property taxes 20,342 41,497 All other items 109,621 116,464 $ 129,963 $ 327,961 |
2 - Balance Sheet Details_ Sche
2 - Balance Sheet Details: Schedule of Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Valuation and Qualifying Accounts | December 31, 2023 December 31, 2022 Allowance for Credit Losses: Balance at beginning of year $ 160,000 $ 170,000 Charges to statement of operations 13,804 (1,660) Write-offs, net of recoveries (13,804) (8,340) Balance at end of year $ 160,000 $ 160,000 December 31, 2023 December 31, 2022 Inventory Valuation Reserves: Balance at beginning of year $ 621,000 $ 612,000 Charges to statement of operations 143,233 17,070 Write-offs (223,233) (8,070) Balance at end of year $ 541,000 $ 621,000 |
3 - Income Taxes_ Provision for
3 - Income Taxes: Provision for Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Provision for Income Tax Expense | 20 23 2022 Current: Federal $ (1,569) $ 723,000 State (52,832) 40,000 Deferred (1,273,027) 22,000 $ (1,327,428) $ 785,000 |
3 - Income Taxes_ Schedule of E
3 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | 2023 2022 Amount % Amount % Expected tax at U.S. statutory rate $ (1,203,000) (21.0) $ 767,000 21.0 Permanent differences (3,428) (0.1) (14,000) (0.4) State taxes, net of federal benefit (121,000) (2.1) 32,000 0.9 Income tax expense (benefit) $ (1,327,428) (23.2) $ 785,000 21.5 |
3 - Income Taxes_ Schedule of D
3 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 20 23 2022 Depreciation and amortization $ (1,254,472) $ (1,216,451) Inventory 157,307 157,687 Accrued vacation 66,240 71,923 Allowance for credit losses 33,600 38,250 Net operating losses 1,262,621 0 Other, net 59,647 507 $ 324,943 $ (948,084) |
5 - Other Income_ Other Income
5 - Other Income: Other Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Other Income | 20 23 2022 Interest income $ 103,230 $ 55,333 Other 5,004 36,100 $ 108,234 $ 91,433 |
6 - Segment Information_ Schedu
6 - Segment Information: Schedule of Segment Reporting Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Segment Reporting Information | Fastener Assembly Equipment Other Consolidated Year Ended December 31, 2023: Net Sales……………………………………… $ 28,161,362 $ 3,346,360 $ 0 $ 31,507,722 Depreciation……………………………………... 1,145,620 122,928 6,530 1,275,078 Segment operating profit (loss) ……………… (3,747,744) 549,156 0 (3,198,588) Selling and administrative expenses………….. 0 0 (2,638,658) (2,638,658) Other income…………………………………….. 0 0 108,234 108,234 Loss before income taxes…………………… (5,729,012) Capital expenditures……………………………. 1,041,896 5,235 31,236 1,078,367 Segment assets: Accounts receivable, net……………………... 3,994,372 281,510 0 4,275,882 Contract assets………………………………... 0 118,301 0 118,301 Inventories, net………………………………... 5,714,826 1,612,827 0 7,327,653 Property, plant and equipment, net…………. 9,458,605 1,185,804 1,020,673 11,665,082 Other assets…………………………………… 0 0 4,443,987 4,443,987 27,830,905 Year Ended December 31, 2022: Net Sales……………………………………… $ 30,291,547 $ 3,354,486 $ 0 $ 33,646,033 Depreciation……………………………………... 1,129,151 133,615 17,104 1,279,870 Segment operating profit……………………… 505,751 413,995 0 919,746 Selling and administrative expenses………….. 0 0 (2,096,944) (2,096,944) Gain on sale of property 4,738,394 4,738,394 Other income…………………………………….. 0 0 91,433 91,433 Income before income taxes…………………… 3,652,629 Capital expenditures……………………………. 868,654 3,207 98,082 969,943 Segment assets: Accounts receivable, net……………………... 4,683,620 291,517 0 4,975,137 Inventories, net………………………………... 7,766,703 1,354,527 0 9,121,230 Property, plant and equipment, net…………. 9,562,329 1,303,497 995,967 11,861,793 Other assets…………………………………… 0 0 7,667,967 7,667,967 33,626,127 |
Contracts with Customers Revenu
Contracts with Customers Revenue Recognized (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Revenue Recognized, Performance Obligation | $ 342,328 | |
Revenue, Remaining Performance Obligation | 123,172 | |
Contract Assets | $ 118,301 | $ 0 |
Estimated Useful Lives by Asset
Estimated Useful Lives by Asset Category (Details) | Dec. 31, 2023 |
Land Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 15 years |
Land Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 40 years |
Building Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 10 years |
Building Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 40 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 18 years |
Software and Software Development Costs | Minimum | |
Property, Plant and Equipment, Useful Life | 3 years |
Software and Software Development Costs | Maximum | |
Property, Plant and Equipment, Useful Life | 5 years |
Other Capitalized Property Plant and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 3 years |
Other Capitalized Property Plant and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 10 years |
Uncertain Tax Positions and Unr
Uncertain Tax Positions and Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Liability for Uncertain Tax Positions | $ 0 | $ 0 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Weighted Avg. Number of Shares
Weighted Avg. Number of Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Basic | 966,132 | 966,132 |
2 - Balance Sheet Details_ In_2
2 - Balance Sheet Details: Inventory (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Raw materials | $ 2,878,869 | $ 4,460,071 |
Work in process | 2,374,795 | 2,747,427 |
Finished goods | 2,614,989 | 2,534,732 |
Valuation reserves | (541,000) | (621,000) |
Inventories, net | $ 7,327,653 | $ 9,121,230 |
2 - Balance Sheet Details_ Pr_2
2 - Balance Sheet Details: Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Land and improvements | $ 1,510,513 | $ 1,510,513 |
Buildings and improvements | 6,835,619 | 6,818,066 |
Machinery and equipment | 37,019,453 | 35,982,194 |
Capitalized software and other | 933,449 | 1,038,768 |
Less: Accumulated Depreciation | (34,633,952) | (33,487,748) |
Property, Plant and Equipment, Other, Net | $ 11,665,082 | $ 11,861,793 |
2 - Balance Sheet Details_ Ot_2
2 - Balance Sheet Details: Other Accrued Expenses (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Profit sharing plan contribution | $ 0 | $ 170,000 |
Property taxes | 20,342 | 41,497 |
All other items | 109,621 | 116,464 |
Other Accrued Expenses | $ 129,963 | $ 327,961 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-09, Allowance, Credit Loss | ||
Balance at beginning of year | $ 160,000 | $ 170,000 |
Charges to statement of operations | 13,804 | (1,660) |
Write-offs | (13,804) | (8,340) |
Balance at end of year | 160,000 | 160,000 |
SEC Schedule, 12-09, Reserve, Inventory | ||
Balance at beginning of year | 621,000 | 612,000 |
Charges to statement of operations | 143,233 | 17,070 |
Write-offs | (223,233) | (8,070) |
Balance at end of year | $ 541,000 | $ 621,000 |
3 - Income Taxes_ Provision f_2
3 - Income Taxes: Provision for Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Provision for Federal income tax expense, Current | $ (1,569) | $ 723,000 |
Provision for State income tax expense, Current | (52,832) | 40,000 |
Provision for income tax expense, Deferred | (1,273,027) | 22,000 |
Provision (Benefit) for Income Taxes | $ (1,327,428) | $ 785,000 |
3 - Income Taxes_ Schedule of_2
3 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Expected tax at U.S. statutory rate | $ (1,203,000) | $ 767,000 |
Expected tax at U.S. statutory rate, % | 21% | 21% |
Permanent differences | $ (3,428) | $ (14,000) |
Permanent differences, % | (0.10%) | (0.40%) |
State taxes, net of federal benefit | $ (121,000) | $ 32,000 |
State taxes, net of federal benefit, % | (2.10%) | 0.90% |
Provision (Benefit) for Income Taxes | $ (1,327,428) | $ 785,000 |
Income tax expense, % | (23.20%) | 21.50% |
3 - Income Taxes_ Schedule of_3
3 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Deferred Tax Liabilities, Property, Plant and Equipment | $ (1,254,472) | $ (1,216,451) |
Deferred Tax Assets, Inventory | 157,307 | 157,687 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 66,240 | 71,923 |
Deferred Tax Asset, Tax Deferred Expense, Reserve and Accrual, Accounts Receivable, Allowance for Credit Loss | 33,600 | 38,250 |
Deferred Tax Assets, Operating Loss Carryforwards | 1,262,621 | 0 |
Deferred Tax Assets, Other | 59,647 | 507 |
Deferred Tax Assets, Net of Valuation Allowance | $ 324,943 | |
Deferred Tax Liabilities, Net | $ 948,084 |
3 - Income Taxes (Details)
3 - Income Taxes (Details) | Dec. 31, 2023 USD ($) |
Details | |
Operating Loss Carryforwards | $ 6,045,000 |
Profit Sharing Plan (Details)
Profit Sharing Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 170,000 |
5 - Other Income_ Other Incom_2
5 - Other Income: Other Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Interest income | $ 103,230 | $ 55,333 |
Other nonoperating income | 5,004 | 36,100 |
Other Income | $ 108,234 | $ 91,433 |
6 - Segment Information_ Sche_2
6 - Segment Information: Schedule of Segment Reporting Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Sales | $ 31,507,722 | $ 33,646,033 |
Depreciation and Amortization | 1,275,078 | 1,279,870 |
Accounts receivable, net | 4,275,882 | 4,975,137 |
Contract Assets | 118,301 | 0 |
Inventories, net | 7,327,653 | 9,121,230 |
Property, plant and equipment, net | 11,665,082 | 11,861,793 |
Gain on sale of property | 0 | 4,738,394 |
Fastener | ||
Net Sales | 28,161,362 | 30,291,547 |
Depreciation and Amortization | 1,145,620 | 1,129,151 |
Segment operating profit | (3,747,744) | 505,751 |
Selling and Administrative Expenses | 0 | 0 |
Other Income | 0 | 0 |
Capital expenditures | 1,041,896 | 868,654 |
Accounts receivable, net | 3,994,372 | 4,683,620 |
Contract Assets | 0 | |
Inventories, net | 5,714,826 | 7,766,703 |
Property, plant and equipment, net | 9,458,605 | 9,562,329 |
Other assets | 0 | 0 |
Assembly Equipment | ||
Net Sales | 3,346,360 | 3,354,486 |
Depreciation and Amortization | 122,928 | 133,615 |
Segment operating profit | 549,156 | 413,995 |
Selling and Administrative Expenses | 0 | 0 |
Other Income | 0 | 0 |
Capital expenditures | 5,235 | 3,207 |
Accounts receivable, net | 281,510 | 291,517 |
Contract Assets | 118,301 | |
Inventories, net | 1,612,827 | 1,354,527 |
Property, plant and equipment, net | 1,185,804 | 1,303,497 |
Other assets | 0 | 0 |
Corporate Segment | ||
Net Sales | 0 | 0 |
Depreciation and Amortization | 6,530 | 17,104 |
Segment operating profit | 0 | 0 |
Selling and Administrative Expenses | (2,638,658) | (2,096,944) |
Other Income | 108,234 | 91,433 |
Capital expenditures | 31,236 | 98,082 |
Accounts receivable, net | 0 | 0 |
Contract Assets | 0 | |
Inventories, net | 0 | 0 |
Property, plant and equipment, net | 1,020,673 | 995,967 |
Other assets | $ 4,443,987 | 7,667,967 |
Gain on sale of property | $ 4,738,394 |
6 - Segment Information (Detail
6 - Segment Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | $ 31,507,722 | $ 33,646,033 |
UNITED STATES | ||
Revenue | 25,789,921 | 28,157,910 |
Non-US | ||
Revenue | 5,717,801 | 5,488,123 |
Automotive | ||
Revenue | 19,429,009 | 18,663,973 |
NonAutomotive | ||
Revenue | 12,078,713 | 14,982,060 |
Fastener | ||
Revenue | 28,161,362 | 30,291,547 |
Fastener | UNITED STATES | ||
Revenue | 22,635,244 | 24,955,181 |
Fastener | Non-US | ||
Revenue | 5,526,118 | 5,336,366 |
Fastener | Automotive | ||
Revenue | 19,297,188 | 18,454,238 |
Fastener | NonAutomotive | ||
Revenue | 8,864,174 | 11,837,309 |
Assembly Equipment | ||
Revenue | 3,346,360 | 3,354,486 |
Assembly Equipment | UNITED STATES | ||
Revenue | 3,154,677 | 3,202,729 |
Assembly Equipment | Non-US | ||
Revenue | 191,683 | 151,757 |
Assembly Equipment | Automotive | ||
Revenue | 131,821 | 209,735 |
Assembly Equipment | NonAutomotive | ||
Revenue | $ 3,214,539 | $ 3,144,751 |
Summary of % of Revenues and A_
Summary of % of Revenues and A/R from Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
T.I. Group Automotive Systems | ||
Percentage of revenues from major customers | 16% | 15% |
Percentage of accounts receivable balances | 15 | 19 |
Cooper Standard Holdings Inc. | ||
Percentage of revenues from major customers | 14% | 14% |
Percentage of accounts receivable balances | 14 | 16 |
Martinrea International Inc. | ||
Percentage of revenues from major customers | 11% | |
Percentage of accounts receivable balances | 20 |
7 - Additional Financial Info_2
7 - Additional Financial Information Disclosure (Details) - USD ($) | 6 Months Ended | ||
Jan. 01, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Details | |||
Sale Leaseback Transaction, Monthly Rental Payments | $ 9,400 | $ 8,500 | $ 8,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Rent Expense | $ 128,000 | $ 91,000 |
Rent Expense Future Minimum Payments | $ 112,800 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares | |
Details | |
Dividend declaration date | Feb. 19, 2024 |
Dividends per share declared | $ / shares | $ 0.1 |
Dividends payable amount | $ | $ 96,613.2 |
Dividends Payable, Date to be Paid | Mar. 20, 2024 |
Dividends Payable, Date of Record | Mar. 05, 2024 |
10 - Subsequent Events (Details
10 - Subsequent Events (Details) - USD ($) | 6 Months Ended | ||
Jan. 01, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Details | |||
Sale Leaseback Transaction, Monthly Rental Payments | $ 9,400 | $ 8,500 | $ 8,500 |