| 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 and moldboard plows. 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), CBN (cubic boron nitride) inserts and OEM specialty tools through the Company's wholly-owned subsidiary, Ohio Metal Working Company/Art's Way, Inc. (b) Impact of COVID- 19 While the COVID- 19 first 2020, 2020 may March 23, 2020 May 18, 2020 three 17% May 2020, 19 November 2020, 75% February 2021 19. (c) Principles of Consolidation The consolidated financial statements include the accounts of Art's-Way Manufacturing Co., Inc. and its wholly-owned subsidiaries for the 2020 ( d ) Change in Accounting Estimate During the fiscal year 2020, 19, fourth 2020. $1.3 $2.8 250 10 $1 first 2021 In the fourth 2020, not $681,000 November 2020. 2021. $681,000. 250 10 ( e ) Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no November 30, 2019, $79,265. not ( f ) Cash Concentration The Company maintains several different accounts at one ( g ) Customer Concentration During the 2020 2019 one 18% 21%, 6% 10% 2020 2019 (h) 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% (i) 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 (j) 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 40 ( k ) S ales-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 The components related to sales-type leases at November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 Minimum lease receivable, current $ 29,002 $ 162,425 Unearned interest income, current (650 ) (14,420 ) Net investment in sales-type leases, current $ 28,352 $ 148,005 Minimum lease receivable, long-term $ - $ 5,851 Unearned interest income, long-term - (69 ) Net investment in sales-type leases, long-term $ - $ 5,782 There was no November 30, 2020 November 30,2019. Future minimum lease receipts from sales-type leases are as follows: Year Ending November 30, Amount 2021 29,002 Total $ 29,002 (l) Operating Leases The Company determines if an arrangement is a lease at inception of a contract. The nature of the Company's operating leases at this time is office equipment, mainly copiers, with terms of 12 60 ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value payments over the lease term. As most of the Company's leases do not may The Company has copier lease agreements with lease and non-lease components and has elected the practical expedient not not The components of operating leases on the Consolidated Balance Sheets at November 30, 2020 November 30, 2020 Operating lease right-of-use assets $ 27,879 Current portion of operating lease liabilities $ 9,537 Long-term portion of operating lease liabilities 18,342 Total operating lease liabilities $ 27,879 The Company included $27,879 $9,537 $18,342 $23,121 November 30, 2020, 35 5.50% Future maturities of operating lease liabilities are as follows: Year Ending November 30, 2021 10,847 2022 10,847 2023 6,911 2024 1,630 Total lease payments 30,236 Less imputed interest (2,356 ) Total operating lease liabilities 27,879 (m) 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 On December 28, 2020 2021 no 8.8% 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, 2017. (n) 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 customer upon shipment of the goods. The Tools segment has an OEM agreement with one not 30 In certain circumstances, upon the customer's written request, the Company may not not no 2020 2019 $0 $16,000, 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, 8 ( o ) 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, 2020 Agricultural Modular Buildings Tools Total Farm equipment $ 10,149,000 $ - $ - $ 10,149,000 Farm equipment service parts 2,519,000 - - 2,519,000 Steel cutting tools and inserts - - 2,308,000 2,308,000 Modular buildings - 6,517,000 - 6,517,000 Modular building lease income - 318,000 - 318,000 Other 417,000 158,000 23,000 598,000 $ 13,085,000 $ 6,993,000 $ 2,331,000 $ 22,409,000 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 ( p ) 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, 2020 November 30, 2019 Receivables $ 2,391,000 $ 1,680,000 Assets 56,000 727,000 Liabilities 276,000 89,000 The amount of revenue recognized in fiscal year 2020 November 30, 2019 $89,000 $185,000 2019. three November 30, 2019 The Company will utilize the practical expedient exception for these contracts and will report only on performance obligations greater than one November 30, 2020, November 30, 2019, no one (q) Research and Development Research and development costs are expensed when incurred. Such costs approximated $199,000 $149,000 2020 2019 ( r ) Advertising Advertising costs are expensed when incurred. Such costs approximated $175,000 $198,000 2020 2019 not (s) 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, 2020 2019: For the Twelve Months Ended November 30, 2020 November 30, 2019 Numerator for basic and diluted net income (loss) per share: Net income (loss) $ (2,103,486 ) $ (1,419,586 ) Denominator: For basic net income (loss) per share - weighted average common shares outstanding 4,393,887 4,277,375 Effect of dilutive stock options - - For diluted net income (loss) per share - weighted average common shares outstanding 4,393,887 4,277,375 Net Income (Loss) per share - Basic: Net Income (Loss) per share $ (0.48 ) $ (0.33 ) Net Income (Loss) per share - Diluted: Net Income (Loss) per share $ (0.48 ) $ (0.33 ) (t) 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. (u) 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. (v) Recently Issued Accounting Pronouncements A dopted Accounting Pronouncements Leases In February 2016, 2016 02, 842 12 December 15, 2018, 2020 not first 2020, $34,316 $34,316 may 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 Accounting Pronouncements Not Measurement of Credit Losses on Financial Instruments In June 2016, 2016 13, 2016 13 2016 13 December 15, 2022, December 15, 2018, 2016 13 2024. not |
