| Significant Accounting Policies [Text Block] | ( 1 Summary of Significant Accounting Policies (a) Nature of Business Art’s-Way Manufacturing Co., Inc. (the “Company”) is primarily engaged in the fabrication and sale of specialized farm machinery in the agricultural sector of the United States. Primary product offerings include portable and stationary animal feed processing equipment; hay and forage equipment; sugar beet harvesting equipment; land maintenance equipment; manure spreaders; moldboard plows; potato harvesters; and reels. The Company sells its labeled products through independent farm equipment dealers throughout the United States. In addition, the Company manufactures and supplies hay blowers pursuant to OEM agreements. The Company also provides after-market service parts that are available to keep its branded and OEM-produced equipment operating to the satisfaction of the end user of the Company’s products. The Company’s Modular Buildings segment is primarily engaged in the construction of modular laboratories and animal housing facilities through the Company’s wholly-owned subsidiary, Art’s-Way Scientific, Inc. Buildings commonly produced range from basic swine buildings to complex containment research laboratories. This segment also provides services relating to the design, manufacturing, delivering, installation, and renting of the building units that it produces. The Company’s Tools segment is a domestic manufacturer and distributor of standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and tools through the Company’s wholly-owned subsidiary, Ohio Metal Working Company/Art’s Way, Inc. The Company’s discontinued Pressurized Vessels segment was primarily engaged in the fabrication and sale of pressurized vessels and tanks through the Company’s wholly-owned subsidiary, Art’s-Way Vessels, Inc. On August 11, 2016, third 2016 October 31, 2016. March 29, 2018, $1,500,000. (b) Principles of Consolidation The consolidated financial statements include the accounts of Art’s-Way Manufacturing Co., Inc. and its wholly-owned subsidiaries for the 2019 During the second 2018 no no not (c) Cash Concentration The Company maintains several different accounts at one (d) Customer Concentration During the 2018 no one 6% 2019 one 21% 10% (e) Accounts Receivable Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written-off when deemed uncollectible. Recoveries of accounts receivable previously written-off are recorded when received. Accounts receivable are generally considered past due 60 180 Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30 1.5% (f) Inventories Inventories are stated at the lower of cost or net realizable value, and cost is determined using the standard costing method. Management monitors the carrying value of inventories using inventory control and review processes that include, but are not may not (g) Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Depreciation of plant and equipment is provided using the straight-line method, based on the estimated useful lives of the assets which range from three forty (h) Lessor Accounting and Sales-Type Leases Modular buildings held for short term lease by the Modular Buildings segment are recorded at cost. Amortization of the property is calculated over the useful life of the building. Estimated useful life is three five The Company leases modular buildings to certain customers and accounts for these transactions as sales-type leases. These leases have terms of up to 36 (i) Goodwill and Impairment Goodwill represents costs in excess of the fair value of net tangible and identifiable net intangible assets acquired in business combinations. The Company performs an annual test for impairment of goodwill during the fourth not 2019 $375,000 2018 no November 30, 2019 2018. (j) 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. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not not The Company classifies interest and penalties to be paid on an underpayment of taxes as income tax expense. The Company files income tax returns in the U.S. federal jurisdiction and various states and previously in Canada. The Company is no November 30, 2016. On December 22, 2017, 2017 35% 21%. first 2018 2018 $298,000 (k) Revenue Recognition 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 goods. Risk of ownership and title pass to the buyer upon shipment of the goods. All sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies. Any changes in the Company’s terms are documented in the most recently published price lists. Pricing is fixed and determinable according to the Company’s published equipment and parts price lists. Title to all equipment and parts sold passes to the buyer upon delivery to the carrier and is not 30 In certain circumstances, upon the customer’s written request, the Company may not not no 2019 2018 $16,000 $202,000, The Modular Buildings segment is in the construction industry with its major source of revenue arising from 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. Revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion. Contract costs consist of direct costs on contracts, including labor, materials, amounts payable to subcontractors and those indirect costs related to contract performance, such as equipment costs, insurance and employee benefits. Contract cost is recorded as incurred, and revisions in contract revenues and cost estimates are reflected in the accounting period when known. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss. Estimated contract costs include any and all costs appropriately allocable to the contract. The provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract change orders, penalty provisions and final contract settlements may The Company leases modular buildings to certain customers and accounts for these transactions as operating or sales-type leases. These leases have terms of up to 36 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 The Company’s returns policy allows for new and saleable parts to be returned, subject to inspection and a restocking charge, which is included in net sales. Whole goods are not For information on product warranty as it applies to ASC 606, 9 (l) Disaggregation of Revenue 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. Twelve Months Ended November 30, 2019 Agricultural Modular Buildings Tools Total Farm equipment $ 10,435,000 $ - $ - $ 10,435,000 Farm equipment service parts 2,638,000 - - 2,638,000 Steel cutting tools and inserts - - 2,086,000 2,086,000 Modular buildings - 6,460,000 - 6,460,000 Modular building lease income - 674,000 - 674,000 Other 435,000 126,000 35,000 596,000 $ 13,508,000 $ 7,260,000 $ 2,121,000 $ 22,889,000 Twelve Months Ended November 30, 2018 Agricultural Modular Buildings Tools Total Farm equipment $ 11,149,000 $ - $ - $ 11,149,000 Farm equipment service parts 2,735,000 - - 2,735,000 Steel cutting tools and inserts - - 2,239,000 2,239,000 Modular buildings - 2,271,000 - 2,271,000 Modular building lease income - 373,000 - 373,000 Revenue from sales-type leases - 427,000 - 427,000 Other 460,000 38,000 35,000 533,000 $ 14,344,000 $ 3,109,000 $ 2,274,000 $ 19,727,000 (m) Contract Receivables, Contract Assets and Contract Liabilities The following table provides information about contract receivables, contract assets, and contract liabilities from contracts with customers included on the Consolidated Balance Sheets. November 30, 2019 November 30, 2018 Receivables $ 115,000 $ 159,000 Assets 727,000 99,000 Liabilities 89,000 185,000 The amount of revenue recognized in fiscal year 2019 November 30, 2018 $185,000. November 30, 2018 The Company will utilize the practical expedient exception for these contracts and will report only on performance obligations greater than one November 30, 2019, no one (n) Research and Development Research and development costs are expensed when incurred. Such costs approximated $149,000 $178,000 2019 2018 ( o ) Advertising Advertising costs are expensed when incurred. Such costs approximated $198,000 $312,000 2019 2018 not (p) Net Income (Loss) Per Share of Common Stock Basic net income (loss) per share has been computed on the basis of the weighted average number of shares of common stock outstanding. Diluted net income (loss) per share of common stock has been computed on the basis of the weighted average number of shares outstanding plus equivalent shares of common stock 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 of common stock. Basic and diluted (loss) per common share have been computed based on the following as of November 30, 2019 2018: Twelve Months Ended November 30, 2019 November 30, 2018 Numerator for basic and diluted net income (loss) per share: Net income (loss) from continuing operations $ (1,419,586 ) $ (3,336,049 ) Net income (loss) from discontinued operations - (50,853 ) Net income (loss) $ (1,419,586 ) $ (3,386,902 ) Denominator: For basic net income (loss) per share - weighted average common shares outstanding 4,277,375 4,202,836 Effect of dilutive stock options - - For diluted net income (loss) per share - weighted average common shares outstanding 4,277,375 4,202,836 Net Income (Loss) per share - Basic: Continuing Operations $ (0.33 ) $ (0.80 ) Discontinued Operations $ - $ (0.01 ) Net Income (Loss) per share $ (0.33 ) $ (0.81 ) Net Income (Loss) per share - Diluted: Continuing Operations $ (0.33 ) $ (0.80 ) Discontinued Operations $ - $ (0.01 ) Net Income (Loss) per share $ (0.33 ) $ (0.81 ) (q) Stock Based Compensation 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 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. Restricted stock is valued at market value at the day of grant. (r) Use of Estimates Management has made a number of estimates and assumptions related to the reported amount of assets and liabilities, reported amount of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. (s) Recently Issued Accounting Pronouncements Adopted Accounting Pronouncements Effective December 1, 2018 606, 606” 606 606 December 15, 2017, not 606 2019 The Company has evaluated the new standard and applied the core principle to its contract revenue streams. To be consistent with this core principle, an entity is required to apply the following five 1. 2. 3. 4. 5. The Company’s revenues primarily result from contracts with customers. 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 goods. 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 Company’s implementation process for ASC 606 The Company uses discounts as a form of variable consideration for the Agricultural Products and Tools segments. The variable consideration is allocated to the transaction price at contract inception and is generally not not not The Company’s product warranty is included in the price of the product and provides assurance that the product will function in accordance with agreed-upon specifications. Product warranty is expensed at the time of sale for the Agricultural Products and Modular Buildings segments. A small reserve is kept on the balance sheet as consideration for the Tools segment warranty. This product warranty does not 606. The Company adopted ASC 606 606 not 605 not The Company, upon adoption of ASC 606, not • Disaggregation of revenue that depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors; • The opening and closing balances of receivables, contract assets, and contract liabilities from contracts with customers, if not • Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period; • Information about performance obligations in contracts with customers; and • Judgments that significantly affect the determination of the amount and timing of revenue from contracts with customers, including the timing satisfaction of performance obligation, and the transaction price and the amounts allocated to performance obligations. Accounting Pronouncements Not In February 2016, 2016 02, 842 twelve December 15, 2018, 2020 not not not • Nature of its leases • Significant assumptions and judgements used • Information about leases that have not • Related-party lease transactions • Accounting policy election regarding short-term leases • Finance, operating, short-term and variable lease costs • Maturity analysis of operating lease payments, lease receivables and lease obligations • Tabular disclosure of lease-related income • Components of the net investment in a lease • Information on the management of risk associated with residual asset |
