Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
May. 31, 2015 | Jun. 17, 2015 | |
Entity Registrant Name | ARTS WAY MANUFACTURING CO INC | |
Entity Central Index Key | 7,623 | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 4,061,052 | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | May. 31, 2015 | Nov. 30, 2014 |
Current assets: | ||
Cash | $ 601,724 | $ 511,716 |
Accounts receivable-customers, net of allowance for doubtful accounts of $38,415 and $35,175 in 2015 and 2014, respectively | 2,931,858 | 2,961,834 |
Inventories, net | 15,971,257 | 15,089,280 |
Deferred taxes | 1,312,855 | 1,259,943 |
Cost and Profit in Excess of Billings | 85,819 | 17,543 |
Income taxes receivable | 100,417 | |
Other current assets | 449,434 | 125,228 |
Total current assets | 21,352,947 | 20,065,961 |
Property, plant, and equipment, net | 11,371,871 | 11,680,792 |
Assets held for lease, net | 26,591 | 58,500 |
Goodwill | 993,729 | 993,729 |
Other Assets | 42,890 | 47,360 |
Total assets | 33,788,028 | 32,846,342 |
Current liabilities: | ||
Line of credit | 3,318,878 | 2,569,106 |
Less current portion of term debt | 1,302,741 | 1,283,897 |
Accounts payable | 938,959 | 874,653 |
Customer Deposits | 702,686 | 95,411 |
Billings in Excess of Cost and Profit | 127,296 | 96,382 |
Accrued expenses | 1,495,657 | 1,584,328 |
Income taxes payable | 10,150 | |
Total current liabilities | 7,896,367 | 6,503,777 |
Long-term liabilities | ||
Deferred taxes | 1,121,580 | 1,141,580 |
Long Term debt, excluding current portion | 5,292,554 | 5,949,329 |
Total liabilities | $ 14,310,501 | $ 13,594,686 |
Commitments and Contingencies (Notes 6 and 7) | ||
Stockholders’ equity: | ||
Undesignated preferred stock - $0.01 par value. Authorized 500,000 shares in 2015 and 2014; issued and outstanding 0 shares in 2015 and 2014. | $ 0 | $ 0 |
Common stock – $0.01 par value. Authorized 9,500,000 shares in 2015 and 2014; issued and outstanding 4,061,052 in 2015 and 4,048,552 in 2014 | 40,610 | 40,486 |
Additional paid-in capital | 2,667,010 | 2,638,651 |
Retained earnings | 16,769,907 | 16,572,519 |
Total stockholders’ equity | 19,477,527 | 19,251,656 |
Total liabilities and stockholders’ equity | $ 33,788,028 | $ 32,846,342 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | May. 31, 2015 | Nov. 30, 2014 |
Allowance for doubtful accounts | $ 38,415 | $ 35,175 |
Undesignated preferred stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Undesignated preferred stock - authorized shares (in shares) | 500,000 | 500,000 |
Undesignated preferred stock - issued shares (in shares) | 0 | 0 |
Undesignated preferred stock - outstanding shares (in shares) | 0 | 0 |
Common stock – par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock – authorized shares (in shares) | 9,500,000 | 9,500,000 |
Common stock – issued shares (in shares) | 4,061,052 | 4,048,552 |
Common stock – outstanding shares (in shares) | 4,061,052 | 4,048,552 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Sales | $ 7,804,111 | $ 9,468,996 | $ 15,093,239 | $ 15,706,331 |
Cost of goods sold | 5,596,379 | 7,141,227 | 10,833,376 | 12,038,146 |
Gross profit | 2,207,732 | 2,327,769 | 4,259,863 | 3,668,185 |
Expenses: | ||||
Engineering | 119,540 | 118,361 | 235,216 | 231,899 |
Selling | 581,211 | 639,893 | 1,145,925 | 1,176,043 |
General and administrative | 1,092,837 | 1,125,624 | 2,135,429 | 2,111,288 |
Total expenses | 1,793,588 | 1,883,878 | 3,516,570 | 3,519,230 |
Income from operations | 414,144 | 443,891 | 743,293 | 148,955 |
Other income (expense): | ||||
Interest expense | (81,582) | (121,222) | (161,067) | (175,162) |
Other | 21,445 | 11,431 | 16,581 | 17,105 |
Total other income (expense) | (60,137) | (109,791) | (144,486) | (158,057) |
Income (loss) before income taxes | 354,007 | 334,100 | 598,807 | (9,102) |
Income tax expense (benefit) | 122,386 | 80,945 | 198,991 | (3,943) |
Net income (loss) | $ 231,621 | $ 253,155 | $ 399,816 | $ (5,159) |
Net income per share: | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.10 | $ 0 |
Diluted net income (loss) per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.10 | $ 0 |
Weighted average outstanding shares used to compute basic net income per share (in shares) | 4,060,775 | 4,047,487 | 4,055,698 | 4,047,025 |
Weighted average outstanding shares used to compute diluted net income per share (in shares) | 4,062,294 | 4,053,747 | 4,057,073 | 4,047,025 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Cash flows from operations: | ||
Net income (loss) | $ 399,816 | $ (5,159) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Stock based compensation | 28,484 | 14,504 |
Loss on disposal of property, plant, and equipment | 6,955 | (958) |
Depreciation expense | 459,412 | 441,230 |
Bad debt expense (recovery) | 3,240 | 10,939 |
Deferred income taxes | (72,912) | (25,003) |
Changes in assets and liabilities: | ||
Accounts receivable | 26,736 | (288,590) |
Inventories | (881,977) | (945,760) |
Income taxes receivable | 100,417 | (269,169) |
Other assets | (319,737) | (371,738) |
Accounts payable | 64,306 | 223,896 |
Contracts in progress, net | (37,362) | (8,375) |
Customer deposits | 607,275 | 908,211 |
Income taxes payable | 10,150 | |
Accrued expenses | (88,671) | (133,590) |
Net cash provided by (used in) operating activities | 306,132 | (449,562) |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (139,994) | (611,211) |
Proceeds from sale of assets | 14,456 | 958 |
Net cash (used in) investing activities | (125,538) | (610,253) |
Cash flows from financing activities: | ||
Net change in line of credit | 749,772 | 714,740 |
Proceeds from term debt | 1,000,000 | |
Repayment of term debt | (637,931) | (620,243) |
Proceeds from the exercise of stock options | 7,760 | |
Dividends paid to stockholders | (202,428) | |
Net cash provided by (used in) financing activities | (90,586) | 1,102,257 |
Net increase in cash | 90,008 | 42,442 |
Cash at beginning of period | 511,716 | 207,950 |
Cash at end of period | 601,724 | 250,392 |
Supplemental disclosures of cash flow information: | ||
Interest | 160,803 | 176,564 |
Income taxes | $ 205,296 | $ 291,822 |
Note 1 - Description of the Com
Note 1 - Description of the Company | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1) Description of the Company Unless otherwise specified, as used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Art’s-Way,” and the “Company,” refer to Art’s-Way Manufacturing Co., Inc., a Delaware corporation headquartered in Armstrong, Iowa, and its wholly-owned subsidiaries. We began operations as a farm equipment manufacturer in 1956. Since that time, we have become a major worldwide manufacturer of agricultural equipment. Our principal manufacturing plant is located in Armstrong, Iowa. We have organized our business into four operating segments. Management separately evaluates the financial results of each segment because each is a strategic business unit offering different products and requiring different technology and marketing strategies. Our agricultural products segment (“Manufacturing”) manufactures farm equipment under the Art’s-Way Manufacturing label and private labels. Our pressurized vessels segment (“Vessels”) manufactures pressurized vessels . Our modular buildings segment (“Scientific”) manufactures modular buildings for various uses, commonly animal containment and research laboratories and our tools segment (“Metals”) manufactures steel cutting tools and inserts. For detailed financial information relating to segment reporting, see Note 11, “Segment Information.” |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Account Policies | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2) Summary of Significant Account Policies Statement Presentation The foregoing condensed consolidated financial statements of the Company are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K and the amendment thereto on Form 10-K/A for the fiscal year ended November 30, 2014. The results of operations for the three and six months ended May 31, 2015 are not necessarily indicative of the results for the fiscal year ending November 30, 2015 . The financial books of our Canadian operation are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities be translated to U.S. Dollars at the exchange rate as of quarter end. Owner’s equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The resulting cumulative translation adjustment is carried on the balance sheet and distributed among various balance sheet accounts. The Company monitors the amount of the adjustment and considers it to be immaterial. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the three and six months ended May 31, 2015. Actual results could differ from those estimates. |
Note 3 - Net Income (Loss) Per
Note 3 - Net Income (Loss) Per Share of Common Stock | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3) Net Income (Loss) Per Share of Common Stock Basic net income (loss) per common share has been computed on the basis of the weighted average number of common shares outstanding. Diluted net income (loss) per share has been computed on the basis of the weighted average number of common shares outstanding plus equivalent shares assuming exercise of stock options. Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Basic and diluted earnings (loss) per common share have been computed based on the following as of May 31, 2015 and May 31, 2014: For the three months ended May 31, 2015 May 31, 2014 Basic: Numerator: net income $ 231,621 $ 253,155 Denominator: average number of common shares outstanding 4,060,775 4,047,487 Basic earnings per common share $ 0.06 $ 0.06 Diluted: Numerator: net income $ 231,621 $ 253,155 Average number of common shares outstanding 4,060,775 4,047,487 Effect of dilutive stock options 1,519 6,260 Denominator: dilutive average number of common shares outstanding 4,062,294 4,053,747 Diluted earnings per common share $ 0.06 $ 0.06 For the six months ended May 31, 2015 May 31, 2014 Basic: Numerator: net income $ 399,816 $ (5,159 ) Denominator: average number of common shares outstanding 4,055,698 4,047,025 Basic earnings per common share $ 0.10 $ (0.00 ) Diluted: Numerator: net income $ 399,816 $ (5,159 ) Average number of common shares outstanding 4,055,698 4,047,025 Effect of dilutive stock options 1,375 0 Denominator: dilutive average number of common shares outstanding 4,057,073 4,047,025 Diluted earnings per common share $ 0.10 $ (0.00 ) |
Note 4 - Inventory
Note 4 - Inventory | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4) Inventory Major classes of inventory are: May 31, 2015 November 30, 2014 Raw materials $ 10,440,327 $ 10,037,055 Work in process 553,631 467,110 Finished goods 8,684,721 8,504,062 $ 19,678,679 $ 19,008,227 Less: Reserves (3,707,422 ) (3,918,947 ) $ 15,971,257 $ 15,089,280 |
Note 5 - Accrued Expenses
Note 5 - Accrued Expenses | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 5) Accrued Expenses Major components of accrued expenses are: May 31, 2015 November 30, 2014 Salaries, wages, and commissions $ 721,652 $ 673,934 Accrued warranty expense 283,571 234,266 Other 490,434 676,128 $ 1,495,657 $ 1,584,328 |
Note 6 - Product Warranty
Note 6 - Product Warranty | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 6) Product Warranty The Company offers warranties of various lengths to its customers depending on the specific product and terms of the customer purchase agreement. The average length of the warranty period is one year from the date of purchase. The Company’s warranties require it to repair or replace defective products during the warranty period at no cost to the customer. The Company records a liability for estimated costs that may be incurred under its warranties. The costs are estimated based on historical experience and any specific warranty issues that have been identified. Although historical warranty costs have been within expectations, there can be no assurance that future warranty costs will not exceed historical amounts. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the balance as necessary. The accrued warranty balance is included in accrued expenses as shown in Note 5. Changes in the Company’s product warranty liability for the three and six months ended May 31, 2015 and May 31, 2014 are as follows: For the three months ended May 31, 2015 May 31, 2014 Balance, beginning $ 246,490 $ 153,455 Settlements / adjustments (78,611 ) (43,493 ) Warranties issued 115,692 119,438 Balance, ending $ 283,571 $ 229,400 For the six months ended May 31, 2015 May 31, 2014 Balance, beginning $ 234,266 $ 220,719 Settlements / adjustments (170,136 ) (195,070 ) Warranties issued 219,441 203,751 Balance, ending $ 283,571 $ 229,400 |
Note 7 - Loan and Credit Agreem
Note 7 - Loan and Credit Agreements | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7) Loan and Credit Agreements On May 1, 2013, the Company began a banking relationship with U.S. Bank, which includes an $8,000,000 revolving line of credit (the “Line of Credit”) which was renewed in 2014 and was scheduled to mature on May 1, 2015. The Line of Credit is renewable annually with advances funding the Company’s working capital needs and is secured by real property and fixed asset collateral. On May 1, 2015, we signed an extension for the line of credit extending the maturity date to July 1, 2015; on June 23, 2015 we signed an additional extension, extending the maturity date to May 1, 2016. We expect to renew the Line of Credit prior to its maturity date. The interest rate is U.S. Bank’s prime interest rate, adjusted each time that the Federal prime rate changes, with a minimum rate of 3.50%. As of May 31, 2015, the interest rate was the minimum of 3.50%. Monthly interest-only payments are required and the unpaid principal is due on the maturity date. As of May 31, 2015, the Company had a principal balance of $3,318,878 outstanding against the Line of Credit, with $4,255,255 remaining available The Line of Credit states that the borrowing base will be an amount equal to the sum of 75% of accounts receivable (discounted for aged accounts and customer balances exceeding 20% of aggregate receivables), plus 50% of inventory (this component cannot exceed $6,000,000 and only includes finished goods and raw materials deemed to be in good condition and not obsolete), less any outstanding loan balance of the Line of Credit, and less undrawn amounts of outstanding letters of credit issued by U.S. Bank or any affiliate. The Company’s obligations under the Line of Credit are evidenced by a Revolving Credit Note effective May 1, 2013, a Revolving Credit Agreement dated May 1, 2013 and certain other ancillary documents. In addition to the Line of Credit, on May 1, 2013, the Company obtained four U.S. Bank loans totaling $6,319,000 at a fixed interest rate of 2.98% (the “2013 U.S. Bank Term Loans”). As detailed in the Company’s long-term debt summary below, monthly principal and interest payments in the aggregate amount of $93,850 are required, with final payments of principal and accrued interest on the four loans, in the aggregate amount of $1,372,000, due on May 1, 2018. On May 29, 2014, the Company obtained $1,000,000 in long-term debt from U.S. Bank to partially pay down the Line of Credit draw from 2013 that it had used to finance the purchase of the building and property of Ohio Metal Working Products Company in Canton, Ohio. The maturity date of this loan is May 25, 2017, with a final payment of principal and accrued interest in the amount of $890,000 due May 25, 2017. This loan is secured by a mortgage on the building and property acquired from Ohio Metal Working Products Company in Canton, Ohio pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated May 29, 2014. Except for the U.S. Bank UHC Loan (as defined below), each of the Company’s term loans from U.S. Bank is governed by a Term Note and a Term Loan Agreement. Each Term Loan Agreement and the Revolving Credit Agreement require the Company to provide monthly internally prepared financial reports, year-end audited financial statements, and a monthly aging of accounts receivable. The Company, as of the end of each fiscal quarter, must maintain a debt to tangible net worth ratio of not more than 1.5 to 1.0 and a fixed charge coverage ratio of at least 1.15 to 1.00. The Company was in compliance with all covenants under the Term Loan Agreements and the Revolving Credit Agreement as measured on May 31, 2015. The next measurement date is August 31, 2015. The loans are secured by a first position security interest on the assets of the Company and its subsidiaries, including but not limited to, inventories, machinery, equipment and real estate, in accordance with the Business Security Agreements entered into by the Company and its subsidiaries and the Pledge Agreements entered into by the subsidiaries. Additionally, the Company has mortgaged certain real property in favor of U.S. Bank as documented by mortgage agreements dated May 1, 2013 and May 29, 2014 (together, the “Mortgages”). If the Company or its subsidiaries (as guarantors pursuant to continuing guaranties) commits an event of default under the Term Loan Agreements, Business Security Agreements, Pledge Agreements, Mortgages, or Revolving Credit Agreement and fails or is unable to cure that default, the interest rate on each of the loans and Line of Credit could increase by 5.0% per annum and U.S. Bank can immediately terminate its obligation, if any, to make additional loans to the Company. In addition, U.S. Bank may collect any and all money due or to become due and shall have all other rights and remedies for default provided by the Uniform Commercial Code, as well as any other applicable law and the various loan agreements, including, without limitation, the right to repossess, render unusable and/or dispose of the collateral without judicial process. In addition, in an event of default, U.S. Bank may foreclose on mortgaged property pursuant to the terms of the Mortgages. On May 10, 2012, the Company obtained $880,000 in long-term debt from U.S. Bank issued to acquire the building and property of Universal Harvester Co., Inc. located in Ames, Iowa (the “U.S. Bank UHC Loan”). The maturity date of this loan is May 10, 2017, with a final payment of principal and accrued interest in the amount of $283,500 due May 10, 2017. This loan is secured by a mortgage on the building and property acquired from Universal Harvester Co., Inc. in Ames, Iowa, pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated May 10, 2012. On May 1, 2013, the U.S. Bank UHC Loan and the mortgage were amended to extend the mortgage to secure the 2013 U.S. Bank Term Loans in addition to the U.S. Bank UHC Loan. If the Company or its subsidiaries (as guarantors) commits an event of default under the agreement governing the U.S. Bank UHC Loan and fails or is unable to cure during any applicable cure periods, the lender may cause the entire amount of the loan to be immediately due and payable, may foreclose on the property, or may increase the interest rate to 5.00% per annum, plus the interest rate otherwise payable under the U.S. Bank UHC Loan. On May 1, 2010, the Company obtained a loan to finance the purchase of an additional facility located in West Union, Iowa to be used as a distribution center, warehouse facility, and manufacturing plant for certain products under the Art’s-Way brand. The funds for this loan were made available by the Iowa Finance Authority by the issuance of tax exempt bonds. This loan had an original principal amount of $1,300,000 and an interest rate of 3.5%. On February 1, 2013, the interest rate was decreased to 2.75%. The other terms of the loan remain unchanged. This loan from the Iowa Finance Authority, which has been assigned to The First National Bank of West Union (n/k/a Bank 1 st If the Company commits an event of default under the IFA Loan Agreement and does not cure the event of default within the time specified by the IFA Loan Agreement, the lender may cause the entire amount of the loan to be immediately due and payable and take any other action that it is lawfully permitted to take or in equity to enforce the Company’s performance. The Company was in compliance with all covenants under the IFA Loan Agreement as measured on November 30, 2014. The next measurement date is November 30, 2015 . A summary of the Company’s term debt is as follows: May 31, 2015 November 30, 2014 U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 $ 1,430,781 $ 1,662,311 U.S. Bank loan payable in monthly installments of $11,000 including interest at 2.98%, due May 1, 2018 797,347 850,930 U.S. Bank loan payable in monthly installments of $12,550 including interest at 2.98%, due May 1, 2018 904,682 965,889 U.S. Bank loan payable in monthly installments of $27,800 including interest at 2.98%, due May 1, 2018 1,260,742 1,407,366 U.S. Bank loan payable in monthly installments of $11,700 including interest at 3.15%, due May 10, 2017 526,776 588,101 U.S. Bank loan payable in monthly installments of $5,556 including interest at 2.98%, due May 25, 2017 962,183 980,940 Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 712,784 777,689 Total term debt $ 6,595,295 $ 7,233,226 Less current portion of term debt 1,302,741 1,283,897 Term debt, excluding current portion $ 5,292,554 $ 5,949,329 |
Note 8 - Related Party Transact
Note 8 - Related Party Transactions | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 8) Re lated Party Transactions During the second quarter of fiscal 2015 the Company recognized revenues of $15,718 for transactions with a related party, compared to $9,240 in the second quarter of fiscal 2014. The accounts receivable balance as of May 31, 2015 contains $15,718 due from a related party. |
Note 9 - Recently Issued Accoun
Note 9 - Recently Issued Accounting Pronouncements | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 9) Recently Issued Accounting Pronouncements Presentation of an Unrecognized Tax Benefit In July 2013, the FASB issued ASU No. 2013 -11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” that clarifies how an unrecognized tax benefit should be presented in the financial statements when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists; as a reduction to a deferred tax asset or as a liability. The amendments are meant to eliminate the diversity that exists in the financial statement presentation of the unrecognized tax benefits. The amendments in this ASU do not require new recurring disclosures and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The effective date for the Company is our current fiscal year, which began on December 1, 2014. The Company currently has no unrecognized tax benefits that are impacted by the amendment and the implementation of this standard has not had a material impact on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic 605)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. We are evaluating the new standard, but do not at this time expect this standard to have a material impact on our consolidated financial statements. Going Concern In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern” which is authoritative guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and provide related footnote disclosures, codified in ASC 205-40, Going Concern |
Note 10 - Equity Incentive Plan
Note 10 - Equity Incentive Plan and Stock Based Compensation | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10) Equity Incentive Plan and Stock Based Compensation On January 27, 2011, the Board of Directors of the Company authorized and approved the Art’s-Way Manufacturing Co., Inc. 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan was approved by the stockholders on April 28, 2011. It replaced the Employee Stock Option Plan and the Directors’ Stock Option Plan (collectively, the “Prior Plans”), and no further stock options will be awarded under the Prior Plans. Awards to directors and executive officers under the 2011 Plan will be governed by the forms of agreement approved by the Board of Directors. The 2011 Plan permits the plan administrator to award nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance awards, and stock appreciation rights to employees (including officers), directors, and consultants. The Board of Directors has approved a director compensation policy pursuant to which non-employee directors are automatically granted non-qualified stock options to purchase 2,000 shares of common stock annually or initially upon their election to the Board, which are fully vested. Stock options granted prior to January 27, 2011 are governed by the applicable Prior Plan and the forms of agreement adopted thereunder. Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period. We estimate the fair value of each stock-based award on the measurement date using the Black-Scholes option valuation model which incorporates assumptions as to stock price volatility, the expected life of the options, risk-free interest rate, and dividend yield. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical option exercise and termination data to estimate the expected term the options are expected to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is calculated using historical dividend amounts and the stock price at the option issuance date. We incurred $15,339 and $28,484 of stock-based compensation expense during the three and six months ended May 31, 2015, respectively, compared to $0 and $14,504 of stock-based compensation expense for the same respective periods of fiscal 2014 . |
Note 11 - Disclosures About the
Note 11 - Disclosures About the Fair Value of Financial Instruments | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 11) Disclosures About the Fair Value of Financial Instruments The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties. At May 31, 2015, and November 30, 2014, the carrying amount approximated fair value for cash, accounts receivable, accounts payable, notes payable to bank, and other current and long-term liabilities. The carrying amounts approximate fair value because of the short maturity of these instruments. The fair value of the Company’s installment term loans payable also approximate recorded value because the interest rates charged under the loan terms are not substantially different than current interest rates. |
Note 12 - Segment Information
Note 12 - Segment Information | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 12) Segment Information There are four reportable segments: agricultural products, pressurized vessels, modular buildings and tools. The agricultural products segment fabricates and sells farming products as well as related equipment and replacement parts for these products in the United States and worldwide. The pressurized vessels segment produces and services pressurized tanks. The modular buildings segment manufactures and installs modular buildings for animal containment and various laboratory uses. The tools segment manufactures steel cutting tools and inserts. The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. Management evaluates the performance of each segment based on profit or loss from operations before income taxes, exclusive of nonrecurring gains and losses. Approximate financial information with respect to the reportable segments is as follows. Three Months Ended May 31, 2015 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 6,365,000 $ 476,000 $ 409,000 $ 554,000 $ 7,804,000 Income (loss) from operations 579,000 (5,000 ) (97,000 ) (63,000 ) $ 414,000 Income (loss) before tax 538,000 (11,000 ) (104,000 ) (69,000 ) $ 354,000 Total Assets 25,330,000 2,765,000 2,659,000 3,034,000 $ 33,788,000 Capital expenditures 55,000 - (2,000 ) 5,000 $ 58,000 Depreciation & Amortization 126,000 29,000 52,000 30,000 $ 237,000 Three Months Ended May 31, 2014 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 7,562,000 $ 475,000 $ 537,000 $ 895,000 $ 9,469,000 Income (loss) from operations 599,000 (77,000 ) (114,000 ) 36,000 $ 444,000 Income (loss) before tax 542,000 (85,000 ) (120,000 ) (2,000 ) $ 335,000 Total Assets 26,147,000 2,715,000 2,708,000 3,438,000 $ 35,008,000 Capital expenditures 162,000 16,000 - 1,000 $ 179,000 Depreciation & Amortization 136,000 27,000 37,000 28,000 $ 228,000 Six Months Ended May 31, 2015 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 11,681,000 $ 1,003,000 $ 1,058,000 $ 1,351,000 $ 15,093,000 Income (loss) from operations 1,018,000 (66,000 ) (164,000 ) (45,000 ) $ 743,000 Income (loss) before tax 937,000 (78,000 ) (177,000 ) (83,000 ) $ 599,000 Total Assets 25,330,000 2,765,000 2,659,000 3,034,000 $ 33,788,000 Capital expenditures 133,000 2,000 - 5,000 $ 140,000 Depreciation & Amortization 266,000 53,000 85,000 59,000 $ 463,000 Six Months Ended May 31, 2014 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 12,004,000 $ 898,000 $ 998,000 $ 1,806,000 $ 15,706,000 Income (loss) from operations 396,000 (109,000 ) (240,000 ) 102,000 $ 149,000 Income (loss) before tax 301,000 (125,000 ) (249,000 ) 64,000 $ (9,000 ) Total Assets 26,147,000 2,715,000 2,708,000 3,438,000 $ 35,008,000 Capital expenditures 574,000 27,000 - 10,000 $ 611,000 Depreciation & Amortization 256,000 54,000 74,000 57,000 $ 441,000 |
Note 13 - Subsequent Event
Note 13 - Subsequent Event | 6 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 13) Subsequent Event Management evaluated all other activity of the Company and concluded that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements other than the extension of the U.S. Bank line of credit as previously discussed in Note 7. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Statement Presentation The foregoing condensed consolidated financial statements of the Company are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K and the amendment thereto on Form 10-K/A for the fiscal year ended November 30, 2014. The results of operations for the three and six months ended May 31, 2015 are not necessarily indicative of the results for the fiscal year ending November 30, 2015 . The financial books of our Canadian operation are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities be translated to U.S. Dollars at the exchange rate as of quarter end. Owner’s equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The resulting cumulative translation adjustment is carried on the balance sheet and distributed among various balance sheet accounts. The Company monitors the amount of the adjustment and considers it to be immaterial. |
Use of Estimates, Policy [Policy Text Block] | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the three and six months ended May 31, 2015. Actual results could differ from those estimates. |
Note 3 - Net Income (Loss) Pe20
Note 3 - Net Income (Loss) Per Share of Common Stock (Tables) | 6 Months Ended |
May. 31, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the three months ended May 31, 2015 May 31, 2014 Basic: Numerator: net income $ 231,621 $ 253,155 Denominator: average number of common shares outstanding 4,060,775 4,047,487 Basic earnings per common share $ 0.06 $ 0.06 Diluted: Numerator: net income $ 231,621 $ 253,155 Average number of common shares outstanding 4,060,775 4,047,487 Effect of dilutive stock options 1,519 6,260 Denominator: dilutive average number of common shares outstanding 4,062,294 4,053,747 Diluted earnings per common share $ 0.06 $ 0.06 For the six months ended May 31, 2015 May 31, 2014 Basic: Numerator: net income $ 399,816 $ (5,159 ) Denominator: average number of common shares outstanding 4,055,698 4,047,025 Basic earnings per common share $ 0.10 $ (0.00 ) Diluted: Numerator: net income $ 399,816 $ (5,159 ) Average number of common shares outstanding 4,055,698 4,047,025 Effect of dilutive stock options 1,375 0 Denominator: dilutive average number of common shares outstanding 4,057,073 4,047,025 Diluted earnings per common share $ 0.10 $ (0.00 ) |
Note 4 - Inventory (Tables)
Note 4 - Inventory (Tables) | 6 Months Ended |
May. 31, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | May 31, 2015 November 30, 2014 Raw materials $ 10,440,327 $ 10,037,055 Work in process 553,631 467,110 Finished goods 8,684,721 8,504,062 $ 19,678,679 $ 19,008,227 Less: Reserves (3,707,422 ) (3,918,947 ) $ 15,971,257 $ 15,089,280 |
Note 5 - Accrued Expenses (Tabl
Note 5 - Accrued Expenses (Tables) | 6 Months Ended |
May. 31, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | May 31, 2015 November 30, 2014 Salaries, wages, and commissions $ 721,652 $ 673,934 Accrued warranty expense 283,571 234,266 Other 490,434 676,128 $ 1,495,657 $ 1,584,328 |
Note 6 - Product Warranty (Tabl
Note 6 - Product Warranty (Tables) | 6 Months Ended |
May. 31, 2015 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the three months ended May 31, 2015 May 31, 2014 Balance, beginning $ 246,490 $ 153,455 Settlements / adjustments (78,611 ) (43,493 ) Warranties issued 115,692 119,438 Balance, ending $ 283,571 $ 229,400 For the six months ended May 31, 2015 May 31, 2014 Balance, beginning $ 234,266 $ 220,719 Settlements / adjustments (170,136 ) (195,070 ) Warranties issued 219,441 203,751 Balance, ending $ 283,571 $ 229,400 |
Note 7 - Loan and Credit Agre24
Note 7 - Loan and Credit Agreements (Tables) | 6 Months Ended |
May. 31, 2015 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | May 31, 2015 November 30, 2014 U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 $ 1,430,781 $ 1,662,311 U.S. Bank loan payable in monthly installments of $11,000 including interest at 2.98%, due May 1, 2018 797,347 850,930 U.S. Bank loan payable in monthly installments of $12,550 including interest at 2.98%, due May 1, 2018 904,682 965,889 U.S. Bank loan payable in monthly installments of $27,800 including interest at 2.98%, due May 1, 2018 1,260,742 1,407,366 U.S. Bank loan payable in monthly installments of $11,700 including interest at 3.15%, due May 10, 2017 526,776 588,101 U.S. Bank loan payable in monthly installments of $5,556 including interest at 2.98%, due May 25, 2017 962,183 980,940 Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 712,784 777,689 Total term debt $ 6,595,295 $ 7,233,226 Less current portion of term debt 1,302,741 1,283,897 Term debt, excluding current portion $ 5,292,554 $ 5,949,329 |
Note 12 - Segment Information (
Note 12 - Segment Information (Tables) | 6 Months Ended |
May. 31, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended May 31, 2015 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 6,365,000 $ 476,000 $ 409,000 $ 554,000 $ 7,804,000 Income (loss) from operations 579,000 (5,000 ) (97,000 ) (63,000 ) $ 414,000 Income (loss) before tax 538,000 (11,000 ) (104,000 ) (69,000 ) $ 354,000 Total Assets 25,330,000 2,765,000 2,659,000 3,034,000 $ 33,788,000 Capital expenditures 55,000 - (2,000 ) 5,000 $ 58,000 Depreciation & Amortization 126,000 29,000 52,000 30,000 $ 237,000 Three Months Ended May 31, 2014 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 7,562,000 $ 475,000 $ 537,000 $ 895,000 $ 9,469,000 Income (loss) from operations 599,000 (77,000 ) (114,000 ) 36,000 $ 444,000 Income (loss) before tax 542,000 (85,000 ) (120,000 ) (2,000 ) $ 335,000 Total Assets 26,147,000 2,715,000 2,708,000 3,438,000 $ 35,008,000 Capital expenditures 162,000 16,000 - 1,000 $ 179,000 Depreciation & Amortization 136,000 27,000 37,000 28,000 $ 228,000 Six Months Ended May 31, 2015 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 11,681,000 $ 1,003,000 $ 1,058,000 $ 1,351,000 $ 15,093,000 Income (loss) from operations 1,018,000 (66,000 ) (164,000 ) (45,000 ) $ 743,000 Income (loss) before tax 937,000 (78,000 ) (177,000 ) (83,000 ) $ 599,000 Total Assets 25,330,000 2,765,000 2,659,000 3,034,000 $ 33,788,000 Capital expenditures 133,000 2,000 - 5,000 $ 140,000 Depreciation & Amortization 266,000 53,000 85,000 59,000 $ 463,000 Six Months Ended May 31, 2014 Agricultural Products Pressurized Vessels Modular Buildings Tools Consolidated Revenue from external customers $ 12,004,000 $ 898,000 $ 998,000 $ 1,806,000 $ 15,706,000 Income (loss) from operations 396,000 (109,000 ) (240,000 ) 102,000 $ 149,000 Income (loss) before tax 301,000 (125,000 ) (249,000 ) 64,000 $ (9,000 ) Total Assets 26,147,000 2,715,000 2,708,000 3,438,000 $ 35,008,000 Capital expenditures 574,000 27,000 - 10,000 $ 611,000 Depreciation & Amortization 256,000 54,000 74,000 57,000 $ 441,000 |
Note 1 - Description of the C26
Note 1 - Description of the Company (Details Textual) | 6 Months Ended |
May. 31, 2015 | |
Number of Operating Segments | 4 |
Note 3 - Net Income (Loss) Pe27
Note 3 - Net Income (Loss) Per Share of Common Stock - Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Basic: | ||||
Numerator: net income | $ 231,621 | $ 253,155 | $ 399,816 | $ (5,159) |
Denominator: average number of common shares outstanding (in shares) | 4,060,775 | 4,047,487 | 4,055,698 | 4,047,025 |
Basic earnings per common share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.10 | $ 0 |
Diluted: | ||||
Numerator: net income | $ 231,621 | $ 253,155 | $ 399,816 | $ (5,159) |
Average number of common shares outstanding (in shares) | 4,060,775 | 4,047,487 | 4,055,698 | 4,047,025 |
Effect of dilutive stock options (in shares) | 1,519 | 6,260 | 1,375 | 0 |
Denominator: dilutive average number of common shares outstanding (in shares) | 4,062,294 | 4,053,747 | 4,057,073 | 4,047,025 |
Diluted earnings per common share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.10 | $ 0 |
Note 4 - Inventory - Major Clas
Note 4 - Inventory - Major Classes of Inventory (Details) - USD ($) | May. 31, 2015 | Nov. 30, 2014 |
Raw materials | $ 10,440,327 | $ 10,037,055 |
Work in process | 553,631 | 467,110 |
Finished goods | 8,684,721 | 8,504,062 |
19,678,679 | 19,008,227 | |
Less: Reserves | (3,707,422) | (3,918,947) |
$ 15,971,257 | $ 15,089,280 |
Note 5 - Accrued Expenses - Maj
Note 5 - Accrued Expenses - Major Components Of Accrued Expenses (Details) - USD ($) | May. 31, 2015 | Nov. 30, 2014 |
Salaries, wages, and commissions | $ 721,652 | $ 673,934 |
Accrued warranty expense | 283,571 | 234,266 |
Other | 490,434 | 676,128 |
$ 1,495,657 | $ 1,584,328 |
Note 6 - Product Warranty (Deta
Note 6 - Product Warranty (Details Textual) | 6 Months Ended |
May. 31, 2015 | |
Standard Product Warrant Term | 1 year |
Note 6 - Product Warranty - Cha
Note 6 - Product Warranty - Changes In Product Warranty Liability (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Balance, beginning | $ 246,490 | $ 153,455 | $ 234,266 | $ 220,719 |
Settlements / adjustments | (78,611) | (43,493) | (170,136) | (195,070) |
Warranties issued | 115,692 | 119,438 | 219,441 | 203,751 |
Balance, ending | $ 283,571 | $ 229,400 | $ 283,571 | $ 229,400 |
Note 7 - Loan and Credit Agre32
Note 7 - Loan and Credit Agreements (Details Textual) | 6 Months Ended | 12 Months Ended | |||||
May. 31, 2015USD ($) | Nov. 30, 2014USD ($) | May. 29, 2014USD ($) | May. 01, 2013USD ($) | Feb. 01, 2013 | May. 10, 2012USD ($) | May. 01, 2010USD ($) | |
US Bank New Loans [Member] | |||||||
Debt Instrument, Face Amount | $ 6,319,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.98% | ||||||
Debt Instrument, Periodic Payment | $ 93,850 | ||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 1,372,000 | ||||||
Debt Instrument Covenant Debt to Tangible Net Worth Ratio | 1.5 | ||||||
Debt Instrument Covenant Fixed Charge Coverage Ratio | 1.15 | ||||||
Debt Instrument Covenant Interest Rate Increase in Event of Default | 5.00% | ||||||
US Bank [Member] | |||||||
Debt Instrument, Face Amount | $ 1,000,000 | $ 880,000 | |||||
Term Loan Final Payment | $ 890,000 | $ 283,500 | |||||
Debt Instrument Covenant Interest Rate Increase in Event of Default | 5.00% | ||||||
Iowa Finance Authority [Member] | |||||||
Debt Instrument, Face Amount | $ 1,300,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | 2.75% | 2.75% | 3.50% | |||
Debt Instrument, Periodic Payment | $ 12,500 | $ 12,500 | |||||
Debt Instrument Covenant Debt Service Coverage Ratio | 1.5 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.50% | ||||||
Line of Credit Facility, Interest Rate at Period End | 3.50% | ||||||
Long-term Line of Credit | $ 3,318,878 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 4,255,255 | ||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Percentage of Accounts Receivable | 75.00% | ||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Minimum Percentage of Aggregate Receivables | 20.00% | ||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Percentage of Inventory | 50.00% | ||||||
Line of Credit Facility Borrowing Capacity Borrowing Base Maximum Inventory Amount | $ 6,000,000 |
Note 7 - Loan and Credit Agre33
Note 7 - Loan and Credit Agreements - Summary Of Term Debt (Details) - USD ($) | May. 31, 2015 | Nov. 30, 2014 |
US Bank Loan 1 [Member] | ||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | $ 1,430,781 | $ 1,662,311 |
US Bank Loan 2 [Member] | ||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | 797,347 | 850,930 |
US Bank Loan 3 [Member] | ||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | 904,682 | 965,889 |
US Bank Loan 4 [Member] | ||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | 1,260,742 | 1,407,366 |
US Bank Loan 5 [Member] | ||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | 526,776 | 588,101 |
US Bank Loan 6 [Member] | ||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | 962,183 | 980,940 |
Iowa Finance Authority [Member] | ||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | 712,784 | 777,689 |
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 | 6,595,295 | 7,233,226 |
Less current portion of term debt | 1,302,741 | 1,283,897 |
Term debt, excluding current portion | $ 5,292,554 | $ 5,949,329 |
Note 7 - Loan and Credit Agre34
Note 7 - Loan and Credit Agreements - Summary Of Term Debt (Details) (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
May. 31, 2015 | Nov. 30, 2014 | |
US Bank Loan 1 [Member] | ||
Installments | $ 42,500 | $ 42,500 |
Interest | 2.98% | 2.98% |
US Bank Loan 2 [Member] | ||
Installments | $ 11,000 | $ 11,000 |
Interest | 2.98% | 2.98% |
US Bank Loan 3 [Member] | ||
Installments | $ 12,550 | $ 12,550 |
Interest | 2.98% | 2.98% |
US Bank Loan 4 [Member] | ||
Installments | $ 27,800 | $ 27,800 |
Interest | 2.98% | 2.98% |
US Bank Loan 5 [Member] | ||
Installments | $ 11,700 | $ 11,700 |
Interest | 3.15% | 3.15% |
US Bank Loan 6 [Member] | ||
Installments | $ 5,556 | $ 5,556 |
Interest | 2.98% | 2.98% |
Iowa Finance Authority [Member] | ||
Installments | $ 12,500 | $ 12,500 |
Interest | 2.75% | 2.75% |
Note 8 - Related Party Transa35
Note 8 - Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Revenue from Related Parties | $ 15,718 | $ 9,240 |
Related Party Transaction, Due from (to) Related Party, Current | $ 15,718 |
Note 10 - Equity Incentive Pl36
Note 10 - Equity Incentive Plan and Stock Based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Non Qualified Options to Each Director Annually or Upon Election [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000 | 2,000 | ||
Allocated Share-based Compensation Expense | $ 15,339 | $ 0 | $ 28,484 | $ 14,504 |
Note 12 - Segment Information37
Note 12 - Segment Information (Details Textual) | 6 Months Ended |
May. 31, 2015 | |
Number of Reportable Segments | 4 |
Note 12 - Segment Information -
Note 12 - Segment Information - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Operating Segments [Member] | Agricultural Products [Member] | ||||
Revenue from external customers | $ 6,365,000 | $ 7,562,000 | $ 11,681,000 | $ 12,004,000 |
Income (loss) from operations | 579,000 | 599,000 | 1,018,000 | 396,000 |
Income (loss) before tax | 538,000 | 542,000 | 937,000 | 301,000 |
Total Assets | 25,330,000 | 26,147,000 | 25,330,000 | 26,147,000 |
Capital expenditures | 55,000 | 162,000 | 133,000 | 574,000 |
Depreciation & Amortization | 126,000 | 136,000 | 266,000 | 256,000 |
Operating Segments [Member] | Pressurized Vessels [Member] | ||||
Revenue from external customers | 476,000 | 475,000 | 1,003,000 | 898,000 |
Income (loss) from operations | (5,000) | (77,000) | (66,000) | (109,000) |
Income (loss) before tax | (11,000) | (85,000) | (78,000) | (125,000) |
Total Assets | 2,765,000 | 2,715,000 | 2,765,000 | 2,715,000 |
Capital expenditures | 16,000 | 2,000 | 27,000 | |
Depreciation & Amortization | 29,000 | 27,000 | 53,000 | 54,000 |
Operating Segments [Member] | Modular Buildings [Member] | ||||
Revenue from external customers | 409,000 | 537,000 | 1,058,000 | 998,000 |
Income (loss) from operations | (97,000) | (114,000) | (164,000) | (240,000) |
Income (loss) before tax | (104,000) | (120,000) | (177,000) | (249,000) |
Total Assets | 2,659,000 | 2,708,000 | 2,659,000 | 2,708,000 |
Capital expenditures | (2,000) | |||
Depreciation & Amortization | 52,000 | 37,000 | 85,000 | 74,000 |
Operating Segments [Member] | Tools [Member] | ||||
Revenue from external customers | 554,000 | 895,000 | 1,351,000 | 1,806,000 |
Income (loss) from operations | (63,000) | 36,000 | (45,000) | 102,000 |
Income (loss) before tax | (69,000) | (2,000) | (83,000) | 64,000 |
Total Assets | 3,034,000 | 3,438,000 | 3,034,000 | 3,438,000 |
Capital expenditures | 5,000 | 1,000 | 5,000 | 10,000 |
Depreciation & Amortization | 30,000 | 28,000 | 59,000 | 57,000 |
Operating Segments [Member] | ||||
Revenue from external customers | 7,804,000 | 9,469,000 | 15,093,000 | 15,706,000 |
Income (loss) from operations | 414,000 | 444,000 | 743,000 | 149,000 |
Income (loss) before tax | 354,000 | 335,000 | 599,000 | (9,000) |
Total Assets | 33,788,000 | 35,008,000 | 33,788,000 | 35,008,000 |
Capital expenditures | 58,000 | 179,000 | 140,000 | 611,000 |
Depreciation & Amortization | 237,000 | 228,000 | 463,000 | 441,000 |
Revenue from external customers | 7,804,111 | 9,468,996 | 15,093,239 | 15,706,331 |
Income (loss) from operations | 414,144 | 443,891 | 743,293 | 148,955 |
Income (loss) before tax | 354,007 | $ 334,100 | 598,807 | (9,102) |
Total Assets | $ 33,788,028 | 33,788,028 | ||
Capital expenditures | $ 139,994 | $ 611,211 |