Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Feb. 28, 2019 | Apr. 05, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | ARTS WAY MANUFACTURING CO INC | |
Entity Central Index Key | 0000007623 | |
Trading Symbol | artw | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 4,281,924 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Current assets: | ||
Cash | $ 3,245 | $ 3,512 |
Accounts receivable-customers, net of allowance for doubtful accounts of $33,530 and $25,100 in 2019 and 2018, respectively | 1,662,072 | 1,537,113 |
Inventories, net | 10,208,685 | 10,257,102 |
Cost and profit in excess of billings | 379,666 | 99,287 |
Net investment in sales-type leases, current | 147,494 | 123,055 |
Other current assets | 302,207 | 125,089 |
Total current assets | 12,703,369 | 12,145,158 |
Property, plant, and equipment, net | 5,514,211 | 5,647,485 |
Assets held for lease, net | 890,082 | 1,870,125 |
Deferred income taxes | 1,603,218 | 1,432,422 |
Net investment in sales-type leases, long-term | 116,557 | 153,787 |
Other assets | 75,171 | 76,497 |
Total assets | 20,902,608 | 21,325,474 |
Current liabilities: | ||
Accounts payable | 794,491 | 802,062 |
Customer deposits | 714,800 | 145,632 |
Billings in Excess of Cost and Profit | 2,873 | 185,014 |
Income taxes payable | 2,029 | 6,400 |
Accrued expenses | 763,236 | 893,284 |
Line of credit | 3,641,530 | 3,505,530 |
Current portion of long-term debt | 82,563 | 227,459 |
Total current liabilities | 6,001,522 | 5,765,381 |
Long-term liabilities | ||
Long-term debt, excluding current portion | 2,415,217 | 2,523,018 |
Total liabilities | 8,416,739 | 8,288,399 |
Commitments and Contingencies (Notes 9 and 10) | ||
Stockholders’ equity: | ||
Undesignated preferred stock - $0.01 par value. Authorized 500,000 shares in 2019 and 2018; issued 0 shares in 2019 and 2018. | ||
Common stock – $0.01 par value. Authorized 9,500,000 shares in 2019 and 2018; issued 4,296,703 in 2019 and 4,225,050 in 2018 | 42,967 | 42,250 |
Additional paid-in capital | 3,120,461 | 3,055,632 |
Retained earnings | 9,360,996 | 9,966,928 |
Treasury stock, at cost (14,779 in 2019 and 9,286 in 2018 shares) | (38,555) | (27,735) |
Total stockholders’ equity | 12,485,869 | 13,037,075 |
Total liabilities and stockholders’ equity | $ 20,902,608 | $ 21,325,474 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Allowance for doubtful accounts | $ 33,530 | $ 25,100 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 9,500,000 | 9,500,000 |
Common stock, issued (in shares) | 4,296,703 | 4,225,050 |
Treasury stock (in shares) | 14,779 | 9,286 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Sales | $ 4,124,226 | $ 5,365,536 |
Cost of goods sold | 3,519,382 | 4,245,729 |
Gross profit | 604,844 | 1,119,807 |
Expenses: | ||
Engineering | 147,214 | 129,064 |
Selling | 343,349 | 450,961 |
General and administrative | 836,906 | 848,503 |
Total expenses | 1,327,469 | 1,428,528 |
Income (Loss) from operations | (722,625) | (308,721) |
Other income (expense): | ||
Interest expense | (85,039) | (69,676) |
Other | 26,824 | 72,572 |
Total other income (expense) | (58,215) | 2,896 |
Income (Loss) from continuing operations before income taxes | (780,840) | (305,825) |
Income tax expense (benefit) | (174,908) | 221,573 |
Income (Loss) from continuing operations | (605,932) | (527,398) |
Discontinued Operations | ||
Income (loss) from operations of discontinued segment | (51,590) | |
Income tax expense (benefit) | (12,536) | |
Income (Loss) on discontinued operations | (39,054) | |
Net Income (Loss) | $ (605,932) | $ (566,452) |
Net Income (Loss) per share - Basic: | ||
Continuing Operations (in dollars per share) | $ (0.14) | $ (0.13) |
Discontinued Operations (in dollars per share) | (0.01) | |
Net Income (Loss) per share (in dollars per share) | (0.14) | (0.14) |
Net Income (Loss) per share - Diluted: | ||
Continuing Operations (in dollars per share) | (0.14) | (0.13) |
Discontinued Operations (in dollars per share) | (0.01) | |
Net Income (Loss) per share (in dollars per share) | $ (0.14) | $ (0.14) |
Weighted average outstanding shares used to compute basic net income per share (in shares) | 4,243,707 | 4,170,818 |
Weighted average outstanding shares used to compute diluted net income per share (in shares) | 4,243,707 | 4,170,818 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Net Income (Loss) | $ (605,932) | $ (566,452) |
Other Comprehensive Income (Loss) | ||
Foreign currency translation adjustments | (6,698) | |
Total Other Comprehensive Income (Loss) | (6,698) | |
Comprehensive (Loss) | $ (605,932) | $ (573,150) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Nov. 30, 2017 | 4,158,752 | 1,954 | ||||
Balance at Nov. 30, 2017 | $ 41,587 | $ 2,859,052 | $ 13,353,830 | $ (257,010) | $ (6,425) | $ 15,991,034 |
Stock based compensation (in shares) | 51,000 | 7,332 | ||||
Stock based compensation | $ 510 | 49,048 | $ (21,310) | 28,248 | ||
Foreign Currency Translation Adjustment | (6,698) | (6,698) | ||||
Release of cumulative translation adjustment due to substantial liquidation of a foreign entity | ||||||
Net Income (Loss) | (566,452) | (566,452) | ||||
Balance (in shares) at Feb. 28, 2018 | 4,209,752 | 9,286 | ||||
Balance at Feb. 28, 2018 | $ 42,097 | 2,908,100 | 12,787,378 | (263,708) | $ (27,735) | 15,446,132 |
Balance (in shares) at Nov. 30, 2018 | 4,225,050 | 9,286 | ||||
Balance at Nov. 30, 2018 | $ 42,250 | 3,055,632 | 9,966,928 | $ (27,735) | 13,037,075 | |
Stock based compensation (in shares) | 71,653 | 5,493 | ||||
Stock based compensation | $ 717 | 64,829 | $ (10,820) | 54,726 | ||
Foreign Currency Translation Adjustment | ||||||
Release of cumulative translation adjustment due to substantial liquidation of a foreign entity | ||||||
Net Income (Loss) | (605,932) | (605,932) | ||||
Balance (in shares) at Feb. 28, 2019 | 4,296,703 | 14,779 | ||||
Balance at Feb. 28, 2019 | $ 42,967 | $ 3,120,461 | $ 9,360,996 | $ (38,555) | $ 12,485,869 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Cash flows from operations: | ||
Net (loss) from continuing operations | $ (605,932) | $ (527,398) |
Net income (loss) from discontinued operations | 39,054 | |
Adjustments to reconcile net (loss) to net cash provided by operating activities: | ||
Stock based compensation | 65,546 | 49,558 |
Unrealized foreign currency loss | (6,698) | |
Gain on disposal of property, plant, and equipment | (15,086) | (8,896) |
Depreciation and amortization expense | 289,072 | 189,654 |
Bad debt expense (recovery) | 8,026 | (16,002) |
Deferred income taxes | (170,796) | 207,645 |
Changes in assets and liabilities: | ||
Accounts receivable | (132,985) | 99,194 |
Inventories | 48,417 | 898,217 |
Net investment in sales-type leases | 12,791 | (375,455) |
Other assets | (177,118) | (150,301) |
Accounts payable | (7,571) | 255,821 |
Contracts in progress, net | (462,520) | 26,065 |
Customer deposits | 569,168 | 22,272 |
Income taxes payable | (4,371) | |
Accrued expenses | (130,048) | (117,269) |
Net cash provided by (used in) operating activities - continuing operations | (713,407) | 546,407 |
Net cash (used in) operating activities - discontinued operations | (51,509) | |
Net cash provided by (used in) operating activities | (713,407) | 494,898 |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (53,056) | (64,401) |
Net proceeds from sale of assets | 893,713 | 29,316 |
Net cash provided by (used in) investing activities | 840,657 | (35,085) |
Cash flows from financing activities: | ||
Net change in line of credit | (136,000) | 502,000 |
Repayment of term debt | (252,697) | (53,827) |
Repurchases of common stock | (10,820) | (21,310) |
Net cash (used in) financing activities - continuing operations | (127,517) | (577,137) |
Net cash (used in) financing activities - discontinued operations | (2,262) | |
Net cash (used in) financing activities | (127,517) | (579,399) |
Net increase (decrease) in cash | (267) | (119,586) |
Cash at beginning of period | 3,512 | 212,400 |
Cash at end of period | 3,245 | 92,814 |
Supplemental disclosures of cash flow information: | ||
Interest | 81,186 | 75,787 |
Income taxes | $ 260 | $ 838 |
Note 1 - Description of the Com
Note 1 - Description of the Company | 3 Months Ended |
Feb. 28, 2019 | |
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 The Company began operations as a farm equipment manufacturer in 1956. The Company has organized its business into three third 2016, 4 17 |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Account Policies | 3 Months Ended |
Feb. 28, 2019 | |
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) that 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 November 30, 2018. three February 28, 2019 not November 30, 2019. During the second 2018, no no not Lessor Accounting and Sales-Type Leases Modular buildings held for short term lease by our modular buildings segment are recorded at cost. Amortization of each modular building is calculated over the useful life of the building. Estimated useful life is three five The Company accounts for leases of modular buildings to certain customers as sales-type leases. These leases have terms of up to 36 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 February 28, 2019. Revenue Recognition Effective December 1, 2018 606, 606” 606. 606 no 606, The Company’s revenues primarily result from contracts with customers. The major sources of revenue for the agricultural products and tools segments are farm equipment, service parts related to farm equipment and steel cutting tools and inserts. The agricultural products and tools segments generally execute short-term contracts that contain a single performance obligation – the delivery of product to the common carrier. The Company recognizes revenue for the production and sale of farm equipment, service parts and cutting tools upon shipment of the good(s). The modular buildings segment executes contracts with customers that can be short- or long-term in nature. These contracts can have multiple performance obligations and revenue from these can be recognized over time or at a point in time depending on the nature of the contracts. Payment terms generally are short-term and vary by customer and segment. The major source of revenue for the modular buildings segment is modular building sales. Sales of modular buildings are generally recognized using input methods to measure progress towards the satisfaction of a performance obligation using the percentage of completion method. Stock modular building sales also occur and are recognized at a point in time when the performance obligation is fulfilled through substantial completion. Substantial completion is achieved through customer acceptance of the completed building. The agricultural products segment offers variable consideration in the form of discounts depending on participation in yearly early order programs. This variable consideration is allocated to the transaction price of all products in a sales arrangement and is not not not not Warranties for the agricultural products and modular buildings segments require the Company to repair or replace defective products during the warranty period at no not 606. |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3 Revenue Recognition The following table displays revenue by reportable segment from external customers, disaggregated by major source. The Company believes disaggregating by these categories depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended February 28, 2019 Agricultural Modular Buildings Tools Total Farm equipment $ 2,092,000 $ - $ - $ 2,092,000 Farm equipment service parts 460,000 - - 460,000 Steel cutting tools and inserts - - 484,000 484,000 Modular buildings - 795,000 - 795,000 Modular building lease income - 179,000 - 179,000 Other 58,000 48,000 8,000 114,000 $ 2,610,000 $ 1,022,000 $ 492,000 $ 4,124,000 Three Months Ended February 28, 2018 Agricultural Modular Buildings Tools Total Farm equipment $ 3,253,000 $ - $ - $ 3,253,000 Farm equipment service parts 586,000 - - 586,000 Steel cutting tools and inserts - - 688,000 688,000 Modular buildings - 674,000 - 674,000 Modular building lease income - 49,000 - 49,000 Other 91,000 16,000 9,000 116,000 $ 3,930,000 $ 739,000 $ 697,000 $ 5,366,000 The following table provides information about contract receivables, contract assets, and contract liabilities from contracts with customers included on the Condensed Consolidated Balance Sheets. February 28, 2019 November 30, 2018 Receivables $ 65,000 $ 159,000 Assets 380,000 99,000 Liabilities 478,000 185,000 The amount of revenue recognized in the first 2019 November 30, 2018 $185,013 $252,769 first 2018. |
Note 4 - Discontinued Operation
Note 4 - Discontinued Operations | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4 Discontinued Operations Effective October 31, 2016, March 29, 2018, $1,500,000. As Vessels was a unique business unit of the Company, its liquidation was a strategic shift. In accordance with ASC Topic 360, Income (loss) from discontinued operations, before tax in the accompanying Condensed Consolidated Statements of Operations is comprised of the following: Art's Way Vessels Three Months Ended February 28, 2018 Revenue from external customers $ - Gross Profit - Operating Expense 43,458 Income (loss) from operations (43,458 ) Income (loss) before tax (51,590 ) There were no February 28, 2019 November 30, 2018. |
Note 5 - Net Income (Loss) Per
Note 5 - Net Income (Loss) Per Share of Common Stock | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5 Net Income (Loss) Per Share of Common Stock Basic net income (loss) per share of common stock 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 net income (loss) per share. Basic and diluted net income (loss) per share have been computed based on the following as of February 28, 2019 February 28, 2018: For the Three Months Ended February 28, 2019 February 28, 2018 Numerator for basic and diluted net income (loss) per share: Net income (loss) from continuing operations $ (605,932 ) $ (527,398 ) Net income (loss) from discontinued operations - (39,054 ) Net income (loss) $ (605,932 ) $ (566,452 ) Denominator: For basic net income (loss) per share - weighted average common shares outstanding 4,243,707 4,170,818 Effect of dilutive stock options - - For diluted net income (loss) per share - weighted average common shares outstanding 4,243,707 4,170,818 Net Income (Loss) per share - Basic: Continuing Operations $ (0.14 ) $ (0.13 ) Discontinued Operations $ - $ (0.01 ) Net Income (Loss) per share $ (0.14 ) $ (0.14 ) Net Income (Loss) per share - Diluted: Continuing Operations $ (0.14 ) $ (0.13 ) Discontinued Operations $ - $ (0.01 ) Net Income (Loss) per share $ (0.14 ) $ (0.14 ) |
Note 6 - Inventory
Note 6 - Inventory | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6 Inventory Major classes of inventory are: February 28, 201 9 November 30, 2018 Raw materials $ 7,751,489 $ 7,825,278 Work in process 419,070 272,302 Finished goods 4,896,854 5,051,330 Gross inventory $ 13,067,413 $ 13,148,910 Less: Reserves (2,858,728 ) (2,891,808 ) Net Inventory $ 10,208,685 $ 10,257,102 |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7 Accrued Expenses Major components of accrued expenses are: February 28, 2019 November 30, 2018 Salaries, wages, and commissions $ 464,376 $ 448,737 Accrued warranty expense 25,857 96,785 Other 273,003 347,762 $ 763,236 $ 893,284 |
Note 8 - Assets Held for Lease
Note 8 - Assets Held for Lease | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Disclosure of Assets Available for Sale, Not Part of Discontinued Operations [Text Block] | 8 Assets Held for Lease Major components of assets held for lease are: February 28, 2019 November 30, 2018 West Union facility $ - $ 878,079 Modular buildings 890,082 992,046 Net assets held for lease $ 890,082 $ 1,870,125 Rents recognized from assets held for lease included in sales on the Consolidated Statements of Operations during the first 2019 $179,043 $48,960 2018. first 2019 $2,500 $38,180 2018. December 14, 2018 $900,000. Future minimum lease receipts from assets held for lease are as follows: Future Minimum Lease Receipts Year Ending November 30, Amount 2019 $ 263,250 2020 90,411 Total $ 353,661 |
Note 9 - Product Warranty
Note 9 - Product Warranty | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 9 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 no not 606. may no not 7 three February 28, 2019 February 28, 2018 For the Three Months Ended February 28, 2019 February 28, 2018 Balance, beginning $ 96,785 $ 68,451 Settlements / adjustments (132,297 ) (82,673 ) Warranties issued 61,369 68,357 Balance, ending $ 25,857 $ 54,135 |
Note 10 - Loan and Credit Agree
Note 10 - Loan and Credit Agreements | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10 Loan and Credit Agreements The Company maintains two second Bank Midwest Revolving Line s of Credit and Term Loans On September 28, 2017, $5,000,000 “2017 $2,600,000 October 1, 2037, $600,000 October 1, 2019. 2017 March 29, 2018, $600,000 October 1, 2019 $596,563 $2,328 On February 28, 2019, 2017 $3,641,530 $1,358,470 2017 75% 50% 2017 February 28, 2019, 2017 not 2017 1.00% 4.25% 6.50% 2017 March 30, 2018 March 30, 2019. 2017 no March 30, 2020. The $2,600,000 5.00% first sixty 0.75% 4.15% may five $17,271 $62,400 0.5% 20% 20% 38% 2% $600,000 5.00%, $3,249 On February 13, 2019, $4,000,000 “2019 2019 2019 1.00% 4.25% 6.50% 2019 no one February 13, 2020. February 28, 2019, 2019 Each of the 2017 $2,600,000 September 28, 2017, $600,000 September 28, 2017, 2019 February 13, 2019, In connection with the 2017 September 28, 2017, first 2017 September 28, 2017. 2019 To further secure the 2017 second December 14, 2018. 2019 $2,600,000 $600,000 March 2018. September 28, 2017, September 28, 2017. If the Company or its subsidiaries (as guarantors pursuant to the Commercial Guaranties) commits an event of default with respect to the promissory notes and fails or is unable to cure that default, Bank Midwest may may may Bank Midwest Loan Covenants Compliance with Bank Midwest covenants is measured annually at November 30. 1.75, $5,100,000 1 1 40% 1.25, 0.10 November 30, 2018 no November 30, 2019. 120 Iowa Finance Authority Term Loan On May 1, 2010, $1,300,000 May 1, 2010 On December 14, 2018, A summary of the Company’s term debt is as follows: February 28, 2019 November 30, 2018 Bank Midwest loan payable in monthly installments of $17,271 including interest at 5.00%, due October 1, 2037 $ 2,497,780 $ 2,517,510 Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 - 232,967 Total term debt $ 2,497,780 $ 2,750,477 Less current portion of term debt 82,563 227,459 Term debt, excluding current portion $ 2,415,217 $ 2,523,018 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11 Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses. On December 22, 2017, 2017 35% 21%. December 31, 2017. first 2018. three February 28, 2018 $298,000 |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12 Related Party Transactions From time to time, the Company purchases various supplies from related parties, which are companies owned by J. Ward McConnell, Jr., the Company’s Vice Chairman of the Board of Directors. Also, J. Ward McConnell, Jr. as a shareholder owning more than 20% first 2019, $8,148 $5,001 first 2018. February 28, 2019 $1,452 $1,663 2018. |
Note 13 - Sales-type Leases
Note 13 - Sales-type Leases | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Capital Leases in Financial Statements of Lessor Disclosure [Text Block] | 13 Sales-Type Leases The components related to sales-type leases at February 28, 2019 November 30, 2018 February 28, 2019 November 30, 2018 Minimum lease receivable, current $ 185,575 $ 159,500 Unearned interest income, current (38,081 ) (36,445 ) Net investment in sales-type leases, current $ 147,494 $ 123,055 Minimum lease receivable, long-term $ 124,777 $ 168,277 Unearned interest income, long-term (8,220 ) (14,490 ) Net investment in sales-type leases, long-term $ 116,557 $ 153,787 Gross revenue recognized in sales from continuing operations on the consolidated statements of operations from commencement of sales-type leases for the first 2019 $0 $426,542 first 2018. Future minimum lease receipts from sales-type leases are as follows: Year Ending November 30, Amount 2019 $ 142,075 2020 162,425 2021 5,852 Total $ 310,352 |
Note 14 - Recently Issued Accou
Note 14 - Recently Issued Accounting Pronouncements | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 14 Recently Issued Accounting Pronouncements Accounting Pronouncements Not Leases In February 2016, 2016 02, 842 twelve December 15, 2018, 2020 |
Note 15 - Equity Incentive Plan
Note 15 - Equity Incentive Plan and Stock Based Compensation | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15 Equity Incentive Plan and Stock Based Compensation On January 27, 2011, 2011 “2011 2011 April 28, 2011. no 2011 The 2011 1,000 1,000 first three 2019, 67,053 three 6,000 first 2019, 1,400 Stock options granted prior to January 27, 2011 Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period. The Company estimates the fair value of each stock-based option 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. No three February 28, 2019 2018. $65,546 three February 28, 2019, $49,558 2018. |
Note 16 - Disclosures About the
Note 16 - Disclosures About the Fair Value of Financial Instruments | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 16 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 February 28, 2019 November 30, 2018, not not |
Note 17 - Segment Information
Note 17 - Segment Information | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 17 Segment Information There are three 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. The tables below exclude income and balance sheet data from discontinued operations. See Note 4 Three Months Ended February 28, 201 9 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 2,610,000 $ 1,022,000 $ 492,000 $ 4,124,000 Income (loss) from operations (601,000 ) (98,000 ) (23,000 ) (722,000 ) Income (loss) before tax (649,000 ) (99,000 ) (32,000 ) (780,000 ) Total Assets 14,852,000 3,564,000 2,487,000 20,903,000 Capital expenditures 34,000 18,000 1,000 53,000 Depreciation & Amortization 125,000 132,000 32,000 289,000 Three Months Ended February 28, 201 8 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 3,930,000 $ 739,000 $ 697,000 $ 5,366,000 Income (loss) from operations (275,000 ) (60,000 ) 26,000 (309,000 ) Income (loss) before tax (270,000 ) (52,000 ) 16,000 (306,000 ) Total Assets 16,246,000 3,154,000 2,561,000 21,961,000 Capital expenditures 29,000 35,000 - 64,000 Depreciation & Amortization 133,000 25,000 32,000 190,000 *The consolidated total in the table is a sum of segment figures and may not |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 3 Months Ended |
Feb. 28, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 18 Subsequent Event s Management evaluated all other activity of the Company and concluded that no 10 March 30, 2019. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2019 | |
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) that 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 November 30, 2018. three February 28, 2019 not November 30, 2019. During the second 2018, no no not |
Lessor, Leases [Policy Text Block] | Lessor Accounting and Sales-Type Leases Modular buildings held for short term lease by our modular buildings segment are recorded at cost. Amortization of each modular building is calculated over the useful life of the building. Estimated useful life is three five The Company accounts for leases of modular buildings to certain customers as sales-type leases. These leases have terms of up to 36 |
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 February 28, 2019. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Effective December 1, 2018 606, 606” 606. 606 no 606, The Company’s revenues primarily result from contracts with customers. The major sources of revenue for the agricultural products and tools segments are farm equipment, service parts related to farm equipment and steel cutting tools and inserts. The agricultural products and tools segments generally execute short-term contracts that contain a single performance obligation – the delivery of product to the common carrier. The Company recognizes revenue for the production and sale of farm equipment, service parts and cutting tools upon shipment of the good(s). The modular buildings segment executes contracts with customers that can be short- or long-term in nature. These contracts can have multiple performance obligations and revenue from these can be recognized over time or at a point in time depending on the nature of the contracts. Payment terms generally are short-term and vary by customer and segment. The major source of revenue for the modular buildings segment is modular building sales. Sales of modular buildings are generally recognized using input methods to measure progress towards the satisfaction of a performance obligation using the percentage of completion method. Stock modular building sales also occur and are recognized at a point in time when the performance obligation is fulfilled through substantial completion. Substantial completion is achieved through customer acceptance of the completed building. The agricultural products segment offers variable consideration in the form of discounts depending on participation in yearly early order programs. This variable consideration is allocated to the transaction price of all products in a sales arrangement and is not not not not Warranties for the agricultural products and modular buildings segments require the Company to repair or replace defective products during the warranty period at no not 606. |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended February 28, 2019 Agricultural Modular Buildings Tools Total Farm equipment $ 2,092,000 $ - $ - $ 2,092,000 Farm equipment service parts 460,000 - - 460,000 Steel cutting tools and inserts - - 484,000 484,000 Modular buildings - 795,000 - 795,000 Modular building lease income - 179,000 - 179,000 Other 58,000 48,000 8,000 114,000 $ 2,610,000 $ 1,022,000 $ 492,000 $ 4,124,000 Three Months Ended February 28, 2018 Agricultural Modular Buildings Tools Total Farm equipment $ 3,253,000 $ - $ - $ 3,253,000 Farm equipment service parts 586,000 - - 586,000 Steel cutting tools and inserts - - 688,000 688,000 Modular buildings - 674,000 - 674,000 Modular building lease income - 49,000 - 49,000 Other 91,000 16,000 9,000 116,000 $ 3,930,000 $ 739,000 $ 697,000 $ 5,366,000 |
Contract with Customer, Asset and Liability [Table Text Block] | February 28, 2019 November 30, 2018 Receivables $ 65,000 $ 159,000 Assets 380,000 99,000 Liabilities 478,000 185,000 |
Note 4 - Discontinued Operati_2
Note 4 - Discontinued Operations (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement [Table Text Block] | Art's Way Vessels Three Months Ended February 28, 2018 Revenue from external customers $ - Gross Profit - Operating Expense 43,458 Income (loss) from operations (43,458 ) Income (loss) before tax (51,590 ) |
Note 5 - Net Income (Loss) Pe_2
Note 5 - Net Income (Loss) Per Share of Common Stock (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended February 28, 2019 February 28, 2018 Numerator for basic and diluted net income (loss) per share: Net income (loss) from continuing operations $ (605,932 ) $ (527,398 ) Net income (loss) from discontinued operations - (39,054 ) Net income (loss) $ (605,932 ) $ (566,452 ) Denominator: For basic net income (loss) per share - weighted average common shares outstanding 4,243,707 4,170,818 Effect of dilutive stock options - - For diluted net income (loss) per share - weighted average common shares outstanding 4,243,707 4,170,818 Net Income (Loss) per share - Basic: Continuing Operations $ (0.14 ) $ (0.13 ) Discontinued Operations $ - $ (0.01 ) Net Income (Loss) per share $ (0.14 ) $ (0.14 ) Net Income (Loss) per share - Diluted: Continuing Operations $ (0.14 ) $ (0.13 ) Discontinued Operations $ - $ (0.01 ) Net Income (Loss) per share $ (0.14 ) $ (0.14 ) |
Note 6 - Inventory (Tables)
Note 6 - Inventory (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | February 28, 201 9 November 30, 2018 Raw materials $ 7,751,489 $ 7,825,278 Work in process 419,070 272,302 Finished goods 4,896,854 5,051,330 Gross inventory $ 13,067,413 $ 13,148,910 Less: Reserves (2,858,728 ) (2,891,808 ) Net Inventory $ 10,208,685 $ 10,257,102 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | February 28, 2019 November 30, 2018 Salaries, wages, and commissions $ 464,376 $ 448,737 Accrued warranty expense 25,857 96,785 Other 273,003 347,762 $ 763,236 $ 893,284 |
Note 8 - Assets Held for Lease
Note 8 - Assets Held for Lease (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Property Subject to or Available for Operating Lease [Table Text Block] | February 28, 2019 November 30, 2018 West Union facility $ - $ 878,079 Modular buildings 890,082 992,046 Net assets held for lease $ 890,082 $ 1,870,125 |
Schedule of Future Minimum Payments Receivable for Operating Leases [Table Text Block] | Future Minimum Lease Receipts Year Ending November 30, Amount 2019 $ 263,250 2020 90,411 Total $ 353,661 |
Note 9 - Product Warranty (Tabl
Note 9 - Product Warranty (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Three Months Ended February 28, 2019 February 28, 2018 Balance, beginning $ 96,785 $ 68,451 Settlements / adjustments (132,297 ) (82,673 ) Warranties issued 61,369 68,357 Balance, ending $ 25,857 $ 54,135 |
Note 10 - Loan and Credit Agr_2
Note 10 - Loan and Credit Agreements (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | February 28, 2019 November 30, 2018 Bank Midwest loan payable in monthly installments of $17,271 including interest at 5.00%, due October 1, 2037 $ 2,497,780 $ 2,517,510 Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 - 232,967 Total term debt $ 2,497,780 $ 2,750,477 Less current portion of term debt 82,563 227,459 Term debt, excluding current portion $ 2,415,217 $ 2,523,018 |
Note 13 - Sales-type Leases (Ta
Note 13 - Sales-type Leases (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Sales-type Leases [Table Text Block] | February 28, 2019 November 30, 2018 Minimum lease receivable, current $ 185,575 $ 159,500 Unearned interest income, current (38,081 ) (36,445 ) Net investment in sales-type leases, current $ 147,494 $ 123,055 Minimum lease receivable, long-term $ 124,777 $ 168,277 Unearned interest income, long-term (8,220 ) (14,490 ) Net investment in sales-type leases, long-term $ 116,557 $ 153,787 |
Sales-type Leases, Lease Receivable Maturity [Table Text Block] | Year Ending November 30, Amount 2019 $ 142,075 2020 162,425 2021 5,852 Total $ 310,352 |
Note 17 - Segment Information (
Note 17 - Segment Information (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended February 28, 201 9 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 2,610,000 $ 1,022,000 $ 492,000 $ 4,124,000 Income (loss) from operations (601,000 ) (98,000 ) (23,000 ) (722,000 ) Income (loss) before tax (649,000 ) (99,000 ) (32,000 ) (780,000 ) Total Assets 14,852,000 3,564,000 2,487,000 20,903,000 Capital expenditures 34,000 18,000 1,000 53,000 Depreciation & Amortization 125,000 132,000 32,000 289,000 Three Months Ended February 28, 201 8 Agricultural Products Modular Buildings Tools Consolidated Revenue from external customers $ 3,930,000 $ 739,000 $ 697,000 $ 5,366,000 Income (loss) from operations (275,000 ) (60,000 ) 26,000 (309,000 ) Income (loss) before tax (270,000 ) (52,000 ) 16,000 (306,000 ) Total Assets 16,246,000 3,154,000 2,561,000 21,961,000 Capital expenditures 29,000 35,000 - 64,000 Depreciation & Amortization 133,000 25,000 32,000 190,000 |
Note 1 - Description of the C_2
Note 1 - Description of the Company (Details Textual) | 3 Months Ended |
Feb. 28, 2019 | |
Number of Operating Segments | 3 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Account Policies (Details Textual) | 3 Months Ended |
Feb. 28, 2019 | |
Minimum [Member] | Assets Leased to Others [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | |
Lessor, Capital Lease, Term of Contract | 3 years |
Maximum [Member] | Assets Leased to Others [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Contract with Customer, Liability, Revenue Recognized | $ 185,013 | $ 252,769 |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Disaggregated Revenue from External Customer (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Revenue | $ 4,124,000 | $ 5,366,000 |
Farm Equipment [Member] | ||
Revenue | 2,092,000 | 3,253,000 |
Farm Equipment Service Parts [Member] | ||
Revenue | 460,000 | 586,000 |
Steel Cutting Tools and Inserts [Member] | ||
Revenue | 484,000 | 688,000 |
Modular Buildings [Member] | ||
Revenue | 795,000 | 674,000 |
Modular Buildings Lease Income [Member] | ||
Revenue | 179,000 | 49,000 |
Product and Service, Other [Member] | ||
Revenue | 114,000 | 116,000 |
Agricultural Products [Member] | ||
Revenue | 2,610,000 | 3,930,000 |
Agricultural Products [Member] | Farm Equipment [Member] | ||
Revenue | 2,092,000 | 3,253,000 |
Agricultural Products [Member] | Farm Equipment Service Parts [Member] | ||
Revenue | 460,000 | 586,000 |
Agricultural Products [Member] | Steel Cutting Tools and Inserts [Member] | ||
Revenue | ||
Agricultural Products [Member] | Modular Buildings [Member] | ||
Revenue | ||
Agricultural Products [Member] | Modular Buildings Lease Income [Member] | ||
Revenue | ||
Agricultural Products [Member] | Product and Service, Other [Member] | ||
Revenue | 58,000 | 91,000 |
Modular Buildings [Member] | ||
Revenue | 1,022,000 | 739,000 |
Modular Buildings [Member] | Farm Equipment [Member] | ||
Revenue | ||
Modular Buildings [Member] | Farm Equipment Service Parts [Member] | ||
Revenue | ||
Modular Buildings [Member] | Steel Cutting Tools and Inserts [Member] | ||
Revenue | ||
Modular Buildings [Member] | Modular Buildings [Member] | ||
Revenue | 795,000 | 674,000 |
Modular Buildings [Member] | Modular Buildings Lease Income [Member] | ||
Revenue | 179,000 | 49,000 |
Modular Buildings [Member] | Product and Service, Other [Member] | ||
Revenue | 48,000 | 16,000 |
Tools [Member] | ||
Revenue | 492,000 | 697,000 |
Tools [Member] | Farm Equipment [Member] | ||
Revenue | ||
Tools [Member] | Farm Equipment Service Parts [Member] | ||
Revenue | ||
Tools [Member] | Steel Cutting Tools and Inserts [Member] | ||
Revenue | 484,000 | 688,000 |
Tools [Member] | Modular Buildings [Member] | ||
Revenue | ||
Tools [Member] | Modular Buildings Lease Income [Member] | ||
Revenue | ||
Tools [Member] | Product and Service, Other [Member] | ||
Revenue | $ 8,000 | $ 9,000 |
Note 3 - Revenue Recognition _2
Note 3 - Revenue Recognition - Contract with Customers (Details) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Receivables | $ 65,000 | $ 159,000 |
Assets | 380,000 | 99,000 |
Liabilities | $ 478,000 | $ 185,000 |
Note 4 - Discontinued Operati_3
Note 4 - Discontinued Operations (Details Textual) | Mar. 29, 2018USD ($) |
Real Estate Held for Sale, Sale Price Offer | $ 1,500,000 |
Note 4 - Discontinued Operati_4
Note 4 - Discontinued Operations - Income From Discontinued Operations Before Income Taxes (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Income (loss) before tax | $ (51,590) | |
Discontinued Operations, Held-for-sale [Member] | Vessels Segment [Member] | ||
Revenue from external customers | ||
Gross Profit | ||
Operating Expense | 43,458 | |
Income (loss) from operations | (43,458) | |
Income (loss) before tax | $ (51,590) |
Note 5 - Net Income (Loss) Pe_3
Note 5 - Net Income (Loss) Per Share of Common Stock - Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Numerator for basic and diluted net income (loss) per share: | ||
Net (loss) from continuing operations | $ (605,932) | $ (527,398) |
Net income (loss) from discontinued operations | (39,054) | |
Net income (loss) | $ (605,932) | $ (566,452) |
Denominator: | ||
For basic net income (loss) per share - weighted average common shares outstanding (in shares) | 4,243,707 | 4,170,818 |
Effect of dilutive stock options (in shares) | ||
For diluted net income (loss) per share - weighted average common shares outstanding (in shares) | 4,243,707 | 4,170,818 |
Net Income (Loss) per share - Basic: | ||
Continuing Operations (in dollars per share) | $ (0.14) | $ (0.13) |
Discontinued Operations (in dollars per share) | (0.01) | |
Net Income (Loss) per share (in dollars per share) | (0.14) | (0.14) |
Net Income (Loss) per share - Diluted: | ||
Continuing Operations (in dollars per share) | (0.14) | (0.13) |
Discontinued Operations (in dollars per share) | (0.01) | |
Net Income (Loss) per share (in dollars per share) | $ (0.14) | $ (0.14) |
Note 6 - Inventories - Major Cl
Note 6 - Inventories - Major Classes of Inventory (Details) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Raw materials | $ 7,751,489 | $ 7,825,278 |
Work in process | 419,070 | 272,302 |
Finished goods | 4,896,854 | 5,051,330 |
Gross inventory | 13,067,413 | 13,148,910 |
Less: Reserves | (2,858,728) | (2,891,808) |
Net Inventory | $ 10,208,685 | $ 10,257,102 |
Note 7 - Accrued Expenses - Maj
Note 7 - Accrued Expenses - Major Components Of Accrued Expenses (Details) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Salaries, wages, and commissions | $ 464,376 | $ 448,737 |
Accrued warranty expense | 25,857 | 96,785 |
Other | 273,003 | 347,762 |
Total accrued liabilities, current | $ 763,236 | $ 893,284 |
Note 8 - Assets Held for Leas_2
Note 8 - Assets Held for Lease (Details Textual) | Dec. 14, 2018USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2017 |
Sales [Member] | ||||
Operating Leases, Income Statement, Lease Revenue, Total | $ 179,043 | $ 48,960 | ||
Other Nonoperating Income (Expense) [Member] | ||||
Operating Leases, Income Statement, Lease Revenue, Total | $ 2,500 | $ 38,180 | ||
Modular Buildings [Member] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 1 | |||
West Union Facility [Member] | ||||
Proceeds from Sale of Productive Assets, Total | $ 900,000 |
Note 8 - Assets Held for Leas_3
Note 8 - Assets Held for Lease - Summary of Assets Held for Lease (Details) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Net assets held for lease | $ 890,082 | $ 1,870,125 |
West Union Facility [Member] | ||
Net assets held for lease | 878,079 | |
Modular Buildings [Member] | ||
Net assets held for lease | $ 890,082 | $ 992,046 |
Note 8 - Assets Held for Leas_4
Note 8 - Assets Held for Lease - Future Minimum Lease Receipts From Assets Held for Lease (Details) | Nov. 30, 2018USD ($) |
2019 | $ 263,250 |
2020 | 90,411 |
Total | $ 353,661 |
Note 9 - Product Warranty (Deta
Note 9 - Product Warranty (Details Textual) | 3 Months Ended |
Feb. 28, 2019 | |
Standard Product Warrant Term | 1 year |
Note 9 - Product Warranty - Cha
Note 9 - Product Warranty - Changes in Product Warranty Liability (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Balance, beginning | $ 96,785 | $ 68,451 |
Settlements / adjustments | (132,297) | (82,673) |
Warranties issued | 61,369 | 68,357 |
Balance, ending | $ 25,857 | $ 54,135 |
Note 10 - Loan and Credit Agr_3
Note 10 - Loan and Credit Agreements (Details Textual) | Feb. 28, 2019USD ($) | Feb. 13, 2019USD ($) | Mar. 29, 2018USD ($) | Sep. 28, 2017USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2018USD ($) | May 01, 2010USD ($) |
Long-term Debt, Total | $ 2,497,780 | $ 2,497,780 | $ 2,750,477 | |||||
Repayments of Long-term Debt, Total | 252,697 | $ 53,827 | ||||||
Term Loan Due October 2037 [Member] | ||||||||
Long-term Debt, Total | $ 2,497,780 | $ 2,497,780 | $ 2,517,510 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | |||||
Debt Instrument, Periodic Payment, Total | $ 17,271 | $ 17,271 | ||||||
Iowa Finance Authority Term Loan [Member] | ||||||||
Long-term Debt, Total | $ 232,967 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | 2.75% | 2.75% | |||||
Debt Instrument, Periodic Payment, Total | $ 12,500 | $ 12,500 | ||||||
Bank Midwest [Member] | ||||||||
Long-term Line of Credit, Total | $ 3,641,530 | 3,641,530 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,358,470 | $ 1,358,470 | ||||||
Line of Credit, Borrowing Base, Accounts Receivable | 75.00% | 75.00% | ||||||
Line of Credit, Borrowing Base, Inventory | 50.00% | 50.00% | ||||||
Debt Instrument, Covenant, Minimum Working Capital Ratio | 1.75 | |||||||
Debt Instrument, Covenant, Minimum Working Capital | $ 5,100,000 | |||||||
Debt Instrument, Covenant, Maximum Debt to Worth Ratio | 1 | |||||||
Debt Instrument, Covenant, Minimum Tangible Balance Sheet Equity, Percentage | 40.00% | |||||||
Debt Instrument, Covenant, Minimum Debt Service Coverage Ratio | 1.25 | |||||||
Debt Instrument, Covenant, Minimum Debt Service Coverage Ratio, Tolerance | 0.1 | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | ||||||||
Long-term Debt, Total | $ 2,600,000 | |||||||
Debt Instrument, Periodic Payment, Total | $ 17,271 | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | United States Department of Agriculture [Member] | ||||||||
Upfront Guarantee Fee | $ 62,400 | |||||||
Guarantee Fee, Annual Fee, Percentage | 0.50% | |||||||
Guarantee Requirement, Personally Guarantee, Shareholders Ownership Percentage | 20.00% | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | J. Ward McConnell Jr. [Member] | ||||||||
Personally Guaranteed, Percentage of Loan | 38.00% | |||||||
Personally Guaranteed, Fee, Percentage of Guaranteed Amount | 2.00% | |||||||
Bank Midwest [Member] | Term Loan Due October 2019 [Member] | ||||||||
Long-term Debt, Total | 600,000 | |||||||
Repayments of Long-term Debt, Total | $ 600,000 | |||||||
Repayments of Long-term Debt, Principal | 596,563 | |||||||
Repayments of Long-term Debt, Interest | $ 2,328 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||||||
Debt Instrument, Periodic Payment, Total | $ 3,249 | |||||||
Bank Midwest [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
Line of Credit Facility, Interest Rate During Period | 6.50% | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.25% | |||||||
Bank Midwest [Member] | Revolving Credit Facility [Member] | Wall Street Journal Rate [Member] | ||||||||
Long-term Line of Credit, Total | $ 4,000,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
Line of Credit Facility, Interest Rate During Period | 4.25% | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.50% | |||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | Minimum [Member] | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.15% | 4.15% | ||||||
Bank Midwest [Member] | Term Loan Due October 2037 [Member] | Wall Street Journal Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||
The First National Bank of West Union [Member] | Iowa Finance Authority Term Loan [Member] | ||||||||
Debt Instrument, Face Amount | $ 1,300,000 |
Note 10 - Loan and Credit Agr_4
Note 10 - Loan and Credit Agreements - Summary of Term Debt (Details) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Term debt | $ 2,497,780 | $ 2,750,477 |
Less current portion of term debt | 82,563 | 227,459 |
Term debt, excluding current portion | 2,415,217 | 2,523,018 |
Term Loan Due October 2037 [Member] | ||
Term debt | 2,497,780 | 2,517,510 |
Iowa Finance Authority Term Loan [Member] | ||
Term debt | $ 232,967 |
Note 10 - Loan and Credit Agr_5
Note 10 - Loan and Credit Agreements - Summary of Term Debt (Details) (Parentheticals) - USD ($) | 3 Months Ended | 12 Months Ended |
Feb. 28, 2019 | Nov. 30, 2018 | |
Term Loan Due October 2037 [Member] | ||
Debt instrument, periodic payment | $ 17,271 | $ 17,271 |
Debt instrument, interest rate, stated percentage | 5.00% | 5.00% |
Iowa Finance Authority Term Loan [Member] | ||
Debt instrument, periodic payment | $ 12,500 | $ 12,500 |
Debt instrument, interest rate, stated percentage | 2.75% | 2.75% |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Feb. 28, 2018 | Nov. 30, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 298,000 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 8,148 | $ 5,001 |
Due to Related Parties, Total | $ 1,452 | $ 1,663 |
Note 13 - Sales-type Leases (De
Note 13 - Sales-type Leases (Details Textual) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Capital Leases, Income Statement, Sales Type Lease Revenue | $ 0 | $ 426,542 |
Note 13 - Sales-type Leases - C
Note 13 - Sales-type Leases - Components Related to Sales-type Leases (Details) - USD ($) | Feb. 28, 2019 | Nov. 30, 2018 |
Minimum lease receivable, current | $ 185,575 | $ 159,500 |
Unearned interest income, current | (38,081) | (36,445) |
Net investment in sales-type leases, current | 147,494 | 123,055 |
Minimum lease receivable, long-term | 124,777 | 168,277 |
Unearned interest income, long-term | (8,220) | (14,490) |
Net investment in sales-type leases, long-term | $ 116,557 | $ 153,787 |
Note 13 - Sales-type Leases - F
Note 13 - Sales-type Leases - Future Minimum Lease Receipts (Details) | Feb. 28, 2019USD ($) |
2019 | $ 142,075 |
2020 | 162,425 |
2021 | 5,852 |
Total | $ 310,352 |
Note 15 - Equity Incentive Pl_2
Note 15 - Equity Incentive Plan and Stock Based Compensation (Details Textual) - USD ($) | 3 Months Ended | |||
Feb. 28, 2019 | Feb. 28, 2018 | Nov. 30, 2018 | Jan. 27, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Allocated Share-based Compensation Expense, Total | $ 65,546 | $ 49,558 | ||
Non-qualified Stock Units to Non-employee Directors Annually or Upon Election [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000 | 1,000 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,400 | |||
Restricted Stock [Member] | Employees, Directors, and Consultants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 67,053 |
Note 17 - Segment Information_2
Note 17 - Segment Information (Details Textual) | 3 Months Ended |
Feb. 28, 2019 | |
Number of Reportable Segments | 3 |
Note 17 - Segment Information -
Note 17 - Segment Information - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | |||
Feb. 28, 2019 | Feb. 28, 2018 | Nov. 30, 2018 | ||
Revenue from external customers | $ 4,124,226 | $ 5,365,536 | ||
Income (loss) from operations | (722,625) | (308,721) | ||
Total Assets | 20,902,608 | $ 21,325,474 | ||
Capital expenditures | 53,056 | 64,401 | ||
Depreciation & Amortization | 289,072 | 189,654 | ||
Operating Segments [Member] | ||||
Revenue from external customers | [1] | 4,124,000 | 5,366,000 | |
Income (loss) from operations | (722,000) | (309,000) | ||
Income (loss) before tax | (780,000) | (306,000) | ||
Total Assets | [1] | 20,903,000 | 21,961,000 | |
Capital expenditures | [1] | 53,000 | 64,000 | |
Depreciation & Amortization | [1] | 289,000 | 190,000 | |
Operating Segments [Member] | Agricultural Products [Member] | ||||
Revenue from external customers | 2,610,000 | 3,930,000 | ||
Income (loss) from operations | (601,000) | (275,000) | ||
Income (loss) before tax | (649,000) | (270,000) | ||
Total Assets | 14,852,000 | 16,246,000 | ||
Capital expenditures | 34,000 | 29,000 | ||
Depreciation & Amortization | 125,000 | 133,000 | ||
Operating Segments [Member] | Modular Buildings [Member] | ||||
Revenue from external customers | 1,022,000 | 739,000 | ||
Income (loss) from operations | (98,000) | (60,000) | ||
Income (loss) before tax | (99,000) | (52,000) | ||
Total Assets | 3,564,000 | 3,154,000 | ||
Capital expenditures | 18,000 | 35,000 | ||
Depreciation & Amortization | 132,000 | 25,000 | ||
Operating Segments [Member] | Tools [Member] | ||||
Revenue from external customers | 492,000 | 697,000 | ||
Income (loss) from operations | (23,000) | 26,000 | ||
Income (loss) before tax | (32,000) | 16,000 | ||
Total Assets | 2,487,000 | 2,561,000 | ||
Capital expenditures | 1,000 | |||
Depreciation & Amortization | $ 32,000 | $ 32,000 | ||
[1] | The consolidated total in the table is a sum of segment figures and may not tie to actual figures in the condensed consolidated financial statements due to rounding. |