Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2019 | Jul. 14, 2019 | |
Details | ||
Registrant CIK | 0000885307 | |
Fiscal Year End | --08-31 | |
Registrant Name | JEWETT CAMERON TRADING CO LTD | |
SEC Form | 10-Q | |
Period End date | May 31, 2019 | |
Trading Symbol | JCTCF | |
Trading Exchange | NASDAQ | |
Tax Identification Number (TIN) | 00-0000000 | |
Number of common stock shares outstanding | 3,979,096 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Entity File Number | 000-19954 | |
Entity Incorporation, State or Country Code | A1 | |
Entity Address, Address Line One | 32275 N.W. Hillcrest | |
Entity Address, City or Town | North Plains | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97133 | |
City Area Code | 503 | |
Local Phone Number | 647-0110 | |
Title of 12(g) Security | Common Stock, no par value | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false |
JEWETT-CAMERON TRADING COMPANY
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 3,437,995 | $ 6,097,463 |
Accounts receivable, net of allowance of $Nil (August 31, 2018 - $Nil) | 7,125,024 | 4,152,492 |
Inventory, net of allowance of $67,276 (August 31, 2018 - $75,336) (note 3) | 8,629,973 | 9,803,197 |
Note receivable | 1,597 | 4,000 |
Prepaid expenses | 325,983 | 347,251 |
Prepaid income taxes | 180,285 | 114,310 |
Total current assets | 19,700,857 | 20,518,713 |
Property, plant and equipment, net (note 4) | 2,751,058 | 3,105,260 |
Intangible assets, net (note 5) | 3,183 | 3,590 |
Total assets | 22,455,098 | 23,627,563 |
Current liabilities | ||
Accounts payable | 643,340 | 377,092 |
Accrued liabilities | 1,446,811 | 1,795,207 |
Total current liabilities | 2,090,151 | 2,172,299 |
Deferred tax liability (note 6) | 85,850 | 81,853 |
Total liabilities | 2,176,001 | 2,254,152 |
Stockholders' equity | ||
Authorized 21,567,564 common shares, without par value 10,000,000 preferred shares, without par value. Issued 4,015,396 common shares (August 31, 2018 -4,314,659) | 947,310 | 1,017,908 |
Additional paid-in capital | 600,804 | 600,804 |
Retained earnings | 18,730,983 | 19,754,699 |
Total stockholders' equity | 20,279,097 | 21,373,411 |
Total liabilities and stockholders' equity | $ 22,455,098 | $ 23,627,563 |
JEWETT-CAMERON TRADING COMPAN_2
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS - Parenthetical - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Details | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 0 | $ 0 |
Inventory, Net of Allowances, Customer Advances and Progress Billings | $ 672,760 | $ 753,360 |
Common Stock, Shares Authorized | 21,567,564 | 21,567,564 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Outstanding | 4,015,396 | 4,314,659 |
Common Stock, Shares, Issued | 4,015,396 | 4,314,659 |
JEWETT-CAMERON TRADING COMPAN_3
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Details | ||||
SALES | $ 16,692,241 | $ 19,934,709 | $ 33,615,516 | $ 42,690,017 |
COST OF SALES | 13,054,487 | 15,944,995 | 25,907,388 | 33,877,749 |
GROSS PROFIT | 3,637,754 | 3,989,714 | 7,708,128 | 8,812,268 |
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 759,708 | 596,830 | 1,721,743 | 1,658,781 |
Depreciation and amortization | 47,141 | 71,560 | 143,413 | 266,970 |
Wages and employee benefits | 1,324,267 | 1,312,479 | 3,799,700 | 3,587,126 |
Operating Expenses | (2,131,116) | (1,980,869) | (5,664,856) | (5,512,877) |
OTHER ITEMS | ||||
Gain (loss) on sale of property, plant and equipment | 0 | 0 | 105,366 | (27,022) |
Interest and other income | 7,033 | 8,156 | 33,368 | 16,639 |
Nonoperating Income (Expense) | 7,033 | 8,156 | 138,734 | (10,383) |
Income before income taxes | 1,513,671 | 2,017,001 | 2,182,006 | 3,289,008 |
Income tax expense | (415,461) | (627,792) | (614,472) | (1,069,068) |
Net income | $ 1,098,210 | $ 1,389,209 | $ 1,567,534 | $ 2,219,940 |
Basic earnings per common share | $ 0.27 | $ 0.31 | $ 0.36 | $ 0.50 |
Diluted earnings per common share | $ 0.27 | $ 0.31 | $ 0.36 | $ 0.50 |
Basic | 4,022,587 | 4,468,988 | 4,318,128 | 4,468,988 |
Diluted | 4,022,587 | 4,468,988 | 4,318,128 | 4,468,988 |
JEWETT-CAMERON TRADING COMPAN_4
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total | ||
Equity Balance at Aug. 31, 2017 | $ 1,054,316 | $ 600,804 | $ 18,069,251 | $ 19,724,371 | ||
Equity Balance, shares at Aug. 31, 2017 | 4,468,988 | |||||
Net income | $ 0 | 0 | 2,219,940 | 2,219,940 | ||
Equity Balance, shares at May. 31, 2018 | 4,468,988 | |||||
Equity Balance at May. 31, 2018 | $ 1,054,316 | 600,804 | 20,289,191 | 21,944,311 | ||
Shares repurchased and cancelled | [1] | $ (36,408) | 0 | (1,235,191) | $ (1,271,599) | |
Shares repurchased and cancelled | (154,329) | [1] | 154,329 | |||
Net income | $ 0 | 0 | 700,699 | $ 700,699 | ||
Equity Balance, shares at Aug. 31, 2018 | 4,314,659 | |||||
Equity Balance at Aug. 31, 2018 | $ 1,017,908 | 600,804 | 19,754,699 | 21,373,411 | ||
Shares repurchased and cancelled | [1] | $ (70,598) | 0 | (2,591,250) | (2,661,848) | |
Shares repurchased and cancelled | [1] | (299,263) | ||||
Equity Balance, shares at May. 31, 2019 | 4,015,396 | |||||
Equity Balance at May. 31, 2019 | $ 947,310 | $ 600,804 | $ 18,730,983 | $ 20,279,097 | ||
[1] | note 9 |
JEWETT-CAMERON TRADING COMPAN_5
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,567,534 | $ 2,219,940 |
Items not involving an outlay of cash: | ||
Depreciation and amortization | 143,413 | 266,970 |
(Gain) loss on sale of property, plant and equipment | (105,366) | 27,022 |
Deferred income taxes | 3,997 | 41,435 |
Changes in non-cash working capital items: | ||
(Increase) in accounts receivable | (2,972,532) | (3,527,471) |
Decrease in inventory | 1,173,224 | 1,094,535 |
Decrease (increase) in prepaid expenses | 21,268 | (180,143) |
(Increase) in prepaid income taxes | (65,975) | (114,413) |
(Decrease) increase in accounts payable and accrued liabilities | (82,148) | 609,313 |
Net cash (used in) provided by operating activities | (316,585) | 437,188 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (8,112) | (99,437) |
Proceeds from sale of property, plant and equipment | 327,077 | 1,000 |
Net cash used in investing activities | 318,965 | (98,437) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Redemption of common stock | (2,661,848) | 0 |
Net (decrease) increase in cash | (2,659,468) | 338,751 |
Cash, beginning of period | 6,097,463 | 5,912,250 |
Cash, end of period | $ 3,437,995 | $ 6,251,001 |
1. Nature of Operations
1. Nature of Operations | 9 Months Ended |
May 31, 2019 | |
Notes | |
1. Nature of Operations | 1. NATURE OF OPERATIONS Jewett-Cameron Trading Company Ltd. was incorporated in British Columbia on July 8, 1987 as a holding company for Jewett-Cameron Lumber Corporation (JCLC), incorporated September 1953. Jewett-Cameron Trading Company, Ltd. acquired all the shares of JCLC through a stock-for-stock exchange on July 13, 1987, and at that time JCLC became a wholly owned subsidiary. Effective September 1, 2013, the Company reorganized certain of its subsidiaries. JCLCs name was changed to JC USA Inc. (JC USA), and a new subsidiary, Jewett-Cameron Company (JCC), was incorporated. JC USA has the following wholly owned subsidiaries: MSI-PRO Co. (MSI), incorporated April 1996, Jewett-Cameron Seed Company, (JCSC), incorporated October 2000, Greenwood Products, Inc. (Greenwood), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Jewett-Cameron Trading Company Ltd. and its subsidiaries (the Company) have no significant assets in Canada. The Company, through its subsidiaries, operates out of facilities located in North Plains, Oregon. JCCs business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI is an importer and distributor of pneumatic air tools and industrial clamps in the United States. JCSC is a processor and distributor of agricultural seeds in the United States. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies. On May 29, 2018, the Company completed a 2-for-1 forward stock split of its common shares. All share and per share amounts have been retroactively restated (Note 8). These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of May 31, 2019 and August 31, 2018 and its results of operations and cash flows for the three month and nine month periods ended May 31, 2019 and 2018 in accordance with generally accepted accounting principles of the United States of America |
2. Significant Accounting Polic
2. Significant Accounting Policies | 9 Months Ended |
May 31, 2019 | |
Notes | |
2. Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Generally accepted accounting principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A. All inter-company balances and transactions have been eliminated upon consolidation. Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated into the Companys consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. At May 31, 2019, cash and cash equivalents was $ 3,437,995 compared to $ at August 31, 2018. Accounts receivable Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers. The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue. The Company extends credit to domestic customers and offers discounts for early payment. When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit. Inventory Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market. Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods: Office equipment 3-7 years Warehouse equipment 2-10 years Buildings 5-30 years Intangibles The Companys intangible assets have a finite life and are recorded at cost. Amortization is calculated using the straight-line method over the remaining life of the asset. The intangible assets are reviewed annually for impairment. Asset retirement obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Company does not have any significant asset retirement obligations. Impairment of long-lived assets and long-lived assets to be disposed of Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. Currency and foreign exchange These financial statements are expressed in U.S. dollars as the Company's operations are primarily based in the United States. The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar. Any statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. Earnings per share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares. The number of common shares outstanding has been adjusted for a 2 for 1 forward stock split effective May 29, 2018 (Note 8). The earnings per share data for the three and nine month periods ended May 31, 2019 and 2018 are as follows: Three Month Periods ended May 31, Nine Month Periods ended May 31, 2019 2018 2019 2018 Net income $ 1,098,210 $ 1,389,209 $ 1,567,534 $ 2,219,940 Basic weighted average number of common shares outstanding 4,022,587 4,468,988 4,318,128 4,468,988 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 4,022,587 4,468,988 4,318,128 4,468,988 Comprehensive income The Company has no items of other comprehensive income in any period presented. Therefore, net income presented in the consolidated statements of operations equals comprehensive income. Stock-based compensation All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. No options or restricted shares were granted during the nine month period ended May 31, 2019, and there were no options or restricted shares outstanding on May 31, 2019. Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts. Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability. Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of May 31, 2019 and August 31, 2018 follows: May 31, 2019 August 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 3,437,995 $3,437,995 $ 6,097,463 $6,097,463 Accounts receivable, net of allowance 7,125,024 7,125,024 4,152,492 4,152,492 Accounts payable and accrued liabilities 2,090,151 2,090,151 2,172,299 2,172,299 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: May 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 3,437,995 $ 3,437,995 $ $ The fair values of cash are determined through market, observable and corroborated sources. Income taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Shipping and handling costs The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as sales in the consolidated statement of operations. Revenue recognition The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In February 2016, Topic 842, Leases Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-14 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2019. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230): a consensus of the FASBs Emerging Issues Task Force (the Task Force). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. Topic 230 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted this ASU on September 1, 2018, prospectively. There was no material impact on the Companys financial statements on adoption. |
3. Inventory
3. Inventory | 9 Months Ended |
May 31, 2019 | |
Notes | |
3. Inventory | 3. INVENTORY A summary of inventory is as follows: May 31, 2019 August 31, 2018 Wood products and metal products $ 7,937,329 $ 9,189,772 Industrial tools 378,974 378,163 Agricultural seed products 313,670 235,262 $ 8,629,973 $ 9,803,197 |
4. Property, Plant and Equipmen
4. Property, Plant and Equipment | 9 Months Ended |
May 31, 2019 | |
Notes | |
4. Property, Plant and Equipment | 4. PROPERTY, PLANT AND EQUIPMENT A summary of property, plant, and equipment is as follows: May 31, 2019 August 31, 2018 Office equipment $ 478,419 $ 473,702 Warehouse equipment 1,248,532 1,313,714 Buildings 4,072,741 4,090,527 Land 559,065 761,924 6,358,757 6,639,867 Accumulated depreciation (3,607,699) (3,534,607) Net book value $ 2,751,058 $ 3,105,260 In the event that facts and circumstances indicate that the carrying amount of an asset may not be recoverable and an estimate of future discounted cash flows is less than the carrying amount of the asset, an impairment loss will be recognized. Management's estimates of revenues, operating expenses, and operating capital are subject to certain risks and uncertainties which may affect the recoverability of the Company's investments in its assets. Although management has made its best estimate of these factors based on current conditions, it is possible that changes could occur which could adversely affect management's estimate of the net cash flow expected to be generated from its operations. During the nine months ended May 31, 2019, the Company sold its non-core Manning property and buildings in an arms-length transaction. The Manning property was originally acquired as an investment and had been leased to a third-party. Proceeds from the sale totaled $324,674, which is a gain of $105,365. |
5. Intangible Assets
5. Intangible Assets | 9 Months Ended |
May 31, 2019 | |
Notes | |
5. Intangible Assets | 5. INTANGIBLE ASSETS A summary of intangible assets is as follows: May 31, 2019 August 31, 2018 Trademarks, trade names and other $ 43,655 $ 43,655 Accumulated amortization (40,472) (40,065) Net book value $ 3,183 $ 3,590 During the year ended August 31, 2018, the Company wrote off the remaining capitalized costs of $ 43,635 as a result of two patents expiring. |
6. Deferred Income Taxes
6. Deferred Income Taxes | 9 Months Ended |
May 31, 2019 | |
Notes | |
6. Deferred Income Taxes | 6. DEFERRED INCOME TAXES Deferred income tax liability as of May 31, 2019 of $ 85,850 (August 31, 2018 - $ 81,853 ) reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. |
7. Bank Indebtedness
7. Bank Indebtedness | 9 Months Ended |
May 31, 2019 | |
Notes | |
7. Bank Indebtedness | 7. BANK INDEBTEDNESS There was no bank indebtedness under the Companys $ 3,000,000 line of credit as of May 31, 2019 or August 31, 2018. Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. I |
8. Capital Stock
8. Capital Stock | 9 Months Ended |
May 31, 2019 | |
Notes | |
8. Capital Stock | 8. CAPITAL STOCK Common Stock Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company's ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. Common Stock Split The Company declared a two for one stock split of its common stock with a record date of the close of business on May 25, 2018. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 29, 2018. Share and per share data have been retroactively adjusted to reflect the effects of the stock split. |
9. Cancellation of Capital Stoc
9. Cancellation of Capital Stock | 9 Months Ended |
May 31, 2019 | |
Notes | |
9. Cancellation of Capital Stock | 9. Treasury stock may be kept based on an acceptable inventory method such as the average cost basis. Upon disposition or cancellation, the treasury stock account is credited for an amount equal to the number of shares cancelled, multiplied by the cost per share and the difference is treated as additional paid-in-capital in excess of stated value. During the 3 rd During the 2 nd During the 1 st During the 4 th |
10. Share-based Incentive Plans
10. Share-based Incentive Plans | 9 Months Ended |
May 31, 2019 | |
Notes | |
10. Share-based Incentive Plans | 10. SHARE-BASED INCENTIVE PLANS Stock Options The Company has a stock option program under which stock options to purchase securities from the Company can be granted to directors and employees of the Company on terms and conditions acceptable to the regulatory authorities of Canada, notably the Ontario Securities Commission and the British Columbia Securities Commission. Under the stock option program, stock options for up to 10% of the number of issued and outstanding common shares may be granted from time to time, provided that stock options in favor of any one individual may not exceed 5% of the issued and outstanding common shares. No stock option granted under the stock option program is transferable by the optionee other than by will or the laws of descent and distribution, and each stock option is exercisable during the lifetime of the optionee only by such optionee. Generally, no option can be for a term of more than 10 years from the date of the grant. The exercise price of all stock options, granted under the stock option program, must be at least equal to the fair market value (subject to regulated discounts) of such common shares on the date of grant. Options vest at the discretion of the Board of Directors. The Company had no stock options outstanding as of May 31, 2019 and August 31, 2018. Restricted Share Plan The Company has a Restricted Share Plan (the Plan) as approved by shareholders on February 8, 2019. The Plan allows the Company to grant, from time to time, restricted shares as compensation to directors, officers, employees and consultants of the Company. The Restricted Shares are subject to restrictions, including the period under which the shares will be restricted (the Restricted Period) and subject to forfeiture which is determined by the Board at the time of the grant. The recipient of Restricted Shares is entitled to all of the rights of a shareholder, including the right to vote such shares and the right to receive any dividends, except that the shares granted under the Plan are nontransferable during the Restricted Period. The maximum number of Common Shares reserved for issuance under the Plan will not exceed 1% of the then issued and outstanding number of Common Shares at the time of the grant. As of May 31, 2019, the maximum number of shares available to be issued under the Plan was 40,153. As of May 31, 2019 and August 31, 2018, there were no Restricted Shares outstanding. However, the Company has agreed to issue Restricted Shares under the Plan to the Companys CEO as a portion of his earned fiscal 2018 bonus as approved by the Board. The value of this award is $28,055, which is expected to be satisfied through the issuance of Restricted Shares during the fourth quarter of fiscal 2019. The number of shares to be issued under the Plan to satisfy the award will be computed based upon the closing price of the stock on the day of the grant. |
11. Pension and Profit-sharing
11. Pension and Profit-sharing Plans | 9 Months Ended |
May 31, 2019 | |
Notes | |
11. Pension and Profit-sharing Plans | 11. PENSION AND PROFIT-SHARING PLANS The Company has a deferred compensation 401(k) plan for all employees with at least 6 months of service pending a monthly enrolment time. The plan allows for a non-elective discretionary contribution For the nine months ended May 31, 2019 and 2018 the 401(k) compensation expense was $ 227,379 and $ 269,594 , respectively. |
12. Segment Information
12. Segment Information | 9 Months Ended |
May 31, 2019 | |
Notes | |
12. Segment Information | 12. SEGMENT INFORMATION The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered. Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes. The following tables show the operations of the Company's reportable segments. Following is a summary of segmented information for the nine month periods ended May 31, 2019 and 2018: 2019 2018 Sales to unaffiliated customers: Industrial wood products $ 2,993,653 $ 2,510,763 Lawn, garden, pet and other 28,435,820 37,514,801 Seed processing and sales 1,551,427 1,911,588 Industrial tools and clamps 634,616 752,865 $ 33,615,516 $ 42,690,017 Income (loss) before income taxes: Industrial wood products $ 53,624 $ (30,241) Lawn, garden, pet and other 1,300,444 2,556,910 Seed processing and sales (121,164) 84,474 Industrial tools and clamps (20,604) (9,833) Corporate and administrative 969,706 687,698 $ 2,182,006 $ 3,289,008 Identifiable assets: Industrial wood products $ 1,149,255 $ 684,944 Lawn, garden, pet and other 13,703,422 13,977,679 Seed processing and sales 469,466 376,440 Industrial tools and clamps 450,888 460,438 Corporate and administrative 6,682,067 9,552,222 $ 22,455,098 $ 25,051,723 Depreciation and amortization: Industrial wood products $ - $ 193 Lawn, garden, pet and other 16,585 58,108 Seed processing and sales 6,134 5,751 Industrial tools and clamps 367 848 Corporate and administrative 120,327 202,070 $ 143,413 $ 266,970 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - 18,547 Industrial tools and clamps - - Corporate and administrative 8,112 80,890 $ 8,112 $ 99,437 Interest expense : $ - $ - The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the nine months ended May 31, 2019 and 2018: 2019 2018 Sales $ 15,042,055 $ 23,678,847 The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the nine months ended May 31, 2019 and 2018: 2019 2018 United States $ 32,343,957 $ 41,148,757 Canada 979,510 1,139,399 Mexico / Latin America / Caribbean 176,858 192,539 Middle East - 12,209 Europe 36,138 27,095 Asia/Pacific 79,053 170,018 All of the Companys significant identifiable assets were located in the United States as of May 31, 2019 and 2018. |
13. Concentrations
13. Concentrations | 9 Months Ended |
May 31, 2019 | |
Notes | |
13. Concentrations | 13. CONCENTRATIONS Credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with a high quality financial institution. The Company has concentrations of credit risk with respect to accounts receivable as large amounts of its accounts receivable are concentrated geographically in the United States amongst a small number of customers. At May 31, 2019, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 66 %. At May 31, 2018, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 53 %. The Company controls credit risk through credit approvals, credit limits, credit insurance and monitoring procedures. The Company performs credit evaluations of its commercial customers but generally does not require collateral to support accounts receivable. Volume of business The Company has concentrations in the volume of purchases it conducts with its suppliers. For the nine months ended May 31, 2019, there were two suppliers that each accounted for 10% or greater of total purchases, and the aggregate purchases amounted to $ 14,139,344 . For the nine months ended May 31, 2018, there were three suppliers that each accounted for 10% of total purchases, and the aggregate purchases amounted to $ 21,281,697 . |
14. Supplemental Disclosure Wit
14. Supplemental Disclosure With Respect To Cash Flows | 9 Months Ended |
May 31, 2019 | |
Notes | |
14. Supplemental Disclosure With Respect To Cash Flows | 14. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Certain cash payments for the nine months ended May 31 are summarized as follows: 2019 2018 Cash paid during the periods for: Interest $ - $ - Income taxes $ 676,000 $ 1,184,983 There were no non-cash investing or financing activities during the periods presented. |
15. Subsequent Events
15. Subsequent Events | 9 Months Ended |
May 31, 2019 | |
Notes | |
15. Subsequent Events | 15. SUBSEQUENT EVENTS Subsequent to the end of the period, the Company repurchased an additional 36,300 common shares pursuant to the share repurchase plan announced on February 7, 2019. The total cost was $308,137 at an average price of $8.49 per share. |
2. Significant Accounting Pol_2
2. Significant Accounting Policies: Generally accepted accounting principles (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Generally accepted accounting principles | Generally accepted accounting principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. |
2. Significant Accounting Pol_3
2. Significant Accounting Policies: Principles of Consolidation (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Principles of Consolidation | Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A. All inter-company balances and transactions have been eliminated upon consolidation. |
2. Significant Accounting Pol_4
2. Significant Accounting Policies: Estimates (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Estimates | Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated into the Companys consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims. Actual results could differ from those estimates. |
2. Significant Accounting Pol_5
2. Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. At May 31, 2019, cash and cash equivalents was $ 3,437,995 compared to $ at August 31, 2018. |
2. Significant Accounting Pol_6
2. Significant Accounting Policies: Accounts Receivable (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Accounts Receivable | Accounts receivable Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers. The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue. The Company extends credit to domestic customers and offers discounts for early payment. When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit. |
2. Significant Accounting Pol_7
2. Significant Accounting Policies: Inventory (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Inventory | Inventory Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market. Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components. |
2. Significant Accounting Pol_8
2. Significant Accounting Policies: Property, Plant and Equipment (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods: Office equipment 3-7 years Warehouse equipment 2-10 years Buildings 5-30 years |
2. Significant Accounting Pol_9
2. Significant Accounting Policies: Intangibles (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Intangibles | Intangibles The Companys intangible assets have a finite life and are recorded at cost. Amortization is calculated using the straight-line method over the remaining life of the asset. The intangible assets are reviewed annually for impairment. |
2. Significant Accounting Po_10
2. Significant Accounting Policies: Asset Retirement Obligations (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Asset Retirement Obligations | Asset retirement obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Company does not have any significant asset retirement obligations. |
2. Significant Accounting Po_11
2. Significant Accounting Policies: Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of | Impairment of long-lived assets and long-lived assets to be disposed of Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. |
2. Significant Accounting Po_12
2. Significant Accounting Policies: Currency and Foreign Exchange (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Currency and Foreign Exchange | Currency and foreign exchange These financial statements are expressed in U.S. dollars as the Company's operations are primarily based in the United States. The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar. Any statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. |
2. Significant Accounting Po_13
2. Significant Accounting Policies: Earnings Per Share (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Earnings Per Share | Earnings per share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares. The number of common shares outstanding has been adjusted for a 2 for 1 forward stock split effective May 29, 2018 (Note 8). The earnings per share data for the three and nine month periods ended May 31, 2019 and 2018 are as follows: Three Month Periods ended May 31, Nine Month Periods ended May 31, 2019 2018 2019 2018 Net income $ 1,098,210 $ 1,389,209 $ 1,567,534 $ 2,219,940 Basic weighted average number of common shares outstanding 4,022,587 4,468,988 4,318,128 4,468,988 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 4,022,587 4,468,988 4,318,128 4,468,988 |
2. Significant Accounting Po_14
2. Significant Accounting Policies: Comprehensive Income (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Comprehensive Income | Comprehensive income The Company has no items of other comprehensive income in any period presented. Therefore, net income presented in the consolidated statements of operations equals comprehensive income. |
2. Significant Accounting Po_15
2. Significant Accounting Policies: Stock-based Compensation (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Stock-based Compensation | Stock-based compensation All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. No options or restricted shares were granted during the nine month period ended May 31, 2019, and there were no options or restricted shares outstanding on May 31, 2019. |
2. Significant Accounting Po_16
2. Significant Accounting Policies: Financial Instruments (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Financial Instruments | Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts. Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability. Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of May 31, 2019 and August 31, 2018 follows: May 31, 2019 August 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 3,437,995 $3,437,995 $ 6,097,463 $6,097,463 Accounts receivable, net of allowance 7,125,024 7,125,024 4,152,492 4,152,492 Accounts payable and accrued liabilities 2,090,151 2,090,151 2,172,299 2,172,299 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: May 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 3,437,995 $ 3,437,995 $ $ The fair values of cash are determined through market, observable and corroborated sources. |
2. Significant Accounting Po_17
2. Significant Accounting Policies: Income taxes (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Income taxes | Income taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
2. Significant Accounting Po_18
2. Significant Accounting Policies: Shipping and Handling Costs (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Shipping and Handling Costs | Shipping and handling costs The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as sales in the consolidated statement of operations. |
2. Significant Accounting Po_19
2. Significant Accounting Policies: Revenue Recognition (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Revenue Recognition | Revenue recognition The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured. |
2. Significant Accounting Po_20
2. Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
May 31, 2019 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In February 2016, Topic 842, Leases Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-14 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2019. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230): a consensus of the FASBs Emerging Issues Task Force (the Task Force). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. Topic 230 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted this ASU on September 1, 2018, prospectively. There was no material impact on the Companys financial statements on adoption. |
2. Significant Accounting Po_21
2. Significant Accounting Policies: Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment, Estimated Useful Lives | <table border="0" cellspacing="0" cellpadding="0" width="397" style='width:297.6pt;margin-left:36.9pt;border-collapse:collapse'> <tr align="left"> <td width="234" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Office equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">3-7 years</font></p> </td> </tr> <tr align="left"> <td width="234" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Warehouse equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">2-10 years</font></p> </td> </tr> <tr align="left"> <td width="234" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-30 years</font></p> </td> </tr> </table> </div>" id="sjs-B4"><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="397" style='width:297.6pt;margin-left:36.9pt;border-collapse:collapse'> <tr align="left"> <td width="234" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Office equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">3-7 years</font></p> </td> </tr> <tr align="left"> <td width="234" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Warehouse equipment</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">2-10 years</font></p> </td> </tr> <tr align="left"> <td width="234" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">Buildings</font></p> </td> <td width="163" valign="top" style='width:122.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><font lang="EN-GB">5-30 years</font></p> </td> </tr> </table> </div> |
2. Significant Accounting Po_22
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Month Periods ended May 31, Nine Month Periods ended May 31, 2019 2018 2019 2018 Net income $ 1,098,210 $ 1,389,209 $ 1,567,534 $ 2,219,940 Basic weighted average number of common shares outstanding 4,022,587 4,468,988 4,318,128 4,468,988 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 4,022,587 4,468,988 4,318,128 4,468,988 |
2. Significant Accounting Po_23
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Fair Value, Option, Quantitative Disclosures | May 31, 2019 August 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 3,437,995 $3,437,995 $ 6,097,463 $6,097,463 Accounts receivable, net of allowance 7,125,024 7,125,024 4,152,492 4,152,492 Accounts payable and accrued liabilities 2,090,151 2,090,151 2,172,299 2,172,299 |
2. Significant Accounting Po_24
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | May 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 3,437,995 $ 3,437,995 $ $ |
3. Inventory_ Schedule of Inven
3. Inventory: Schedule of Inventory, Current (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Schedule of Inventory, Current | May 31, 2019 August 31, 2018 Wood products and metal products $ 7,937,329 $ 9,189,772 Industrial tools 378,974 378,163 Agricultural seed products 313,670 235,262 $ 8,629,973 $ 9,803,197 |
4. Property, Plant and Equipm_2
4. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment | May 31, 2019 August 31, 2018 Office equipment $ 478,419 $ 473,702 Warehouse equipment 1,248,532 1,313,714 Buildings 4,072,741 4,090,527 Land 559,065 761,924 6,358,757 6,639,867 Accumulated depreciation (3,607,699) (3,534,607) Net book value $ 2,751,058 $ 3,105,260 |
5. Intangible Assets_ Schedule
5. Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | May 31, 2019 August 31, 2018 Trademarks, trade names and other $ 43,655 $ 43,655 Accumulated amortization (40,472) (40,065) Net book value $ 3,183 $ 3,590 |
12. Segment Information_ Schedu
12. Segment Information: Schedule of Segment Reporting Information (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Schedule of Segment Reporting Information | 2019 2018 Sales to unaffiliated customers: Industrial wood products $ 2,993,653 $ 2,510,763 Lawn, garden, pet and other 28,435,820 37,514,801 Seed processing and sales 1,551,427 1,911,588 Industrial tools and clamps 634,616 752,865 $ 33,615,516 $ 42,690,017 Income (loss) before income taxes: Industrial wood products $ 53,624 $ (30,241) Lawn, garden, pet and other 1,300,444 2,556,910 Seed processing and sales (121,164) 84,474 Industrial tools and clamps (20,604) (9,833) Corporate and administrative 969,706 687,698 $ 2,182,006 $ 3,289,008 Identifiable assets: Industrial wood products $ 1,149,255 $ 684,944 Lawn, garden, pet and other 13,703,422 13,977,679 Seed processing and sales 469,466 376,440 Industrial tools and clamps 450,888 460,438 Corporate and administrative 6,682,067 9,552,222 $ 22,455,098 $ 25,051,723 Depreciation and amortization: Industrial wood products $ - $ 193 Lawn, garden, pet and other 16,585 58,108 Seed processing and sales 6,134 5,751 Industrial tools and clamps 367 848 Corporate and administrative 120,327 202,070 $ 143,413 $ 266,970 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - 18,547 Industrial tools and clamps - - Corporate and administrative 8,112 80,890 $ 8,112 $ 99,437 Interest expense : $ - $ - |
12. Segment Information_ Sales
12. Segment Information: Sales in excess of ten percent of total sales (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Sales in excess of ten percent of total sales | 2019 2018 Sales $ 15,042,055 $ 23,678,847 |
12. Segment Information_ Sche_2
12. Segment Information: Schedule of sales by country (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Schedule of sales by country | 2019 2018 United States $ 32,343,957 $ 41,148,757 Canada 979,510 1,139,399 Mexico / Latin America / Caribbean 176,858 192,539 Middle East - 12,209 Europe 36,138 27,095 Asia/Pacific 79,053 170,018 |
14. Supplemental Disclosure W_2
14. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Tables) | 9 Months Ended |
May 31, 2019 | |
Tables/Schedules | |
Schedule of Cash Flow, Supplemental Disclosures | 2019 2018 Cash paid during the periods for: Interest $ - $ - Income taxes $ 676,000 $ 1,184,983 |
1. Nature of Operations (Detail
1. Nature of Operations (Details) | 9 Months Ended |
May 31, 2019 | |
Details | |
Entity Incorporation, Date of Incorporation | Jul. 8, 1987 |
2. Significant Accounting Po_25
2. Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 |
Details | ||||
Cash and cash equivalents | $ 3,437,995 | $ 6,097,463 | $ 6,251,001 | $ 5,912,250 |
2. Significant Accounting Po_26
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Details | ||||
Net income | $ 1,098,210 | $ 1,389,209 | $ 1,567,534 | $ 2,219,940 |
Basic weighted average number of common shares outstanding | 4,022,587 | 4,468,988 | 4,318,128 | 4,468,988 |
Stock options | 0 | 0 | 0 | 0 |
Diluted | 4,022,587 | 4,468,988 | 4,318,128 | 4,468,988 |
2. Significant Accounting Po_27
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Details) - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Details | ||
Cash | $ 3,437,995 | $ 6,097,463 |
Accounts Receivable, after Allowance for Credit Loss | 7,125,024 | 4,152,492 |
Accounts Payable and Accrued Liabilities, Current | $ 2,090,151 | $ 2,172,299 |
2. Significant Accounting Po_28
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Details | ||
Cash | $ 3,437,995 | $ 6,097,463 |
Cash | $ 3,437,995 | $ 6,097,463 |
3. Inventory_ Schedule of Inv_2
3. Inventory: Schedule of Inventory, Current (Details) - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Details | ||
Wood products and metal products | $ 7,937,329 | $ 9,189,772 |
Industrial tools | 378,974 | 378,163 |
Agricultural seed products | 313,670 | 235,262 |
Inventory, net | $ 8,629,973 | $ 9,803,197 |
4. Property, Plant and Equipm_3
4. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Details | ||
Office equipment | $ 478,419 | $ 473,702 |
Warehouse equipment | 1,248,532 | 1,313,714 |
Buildings | 4,072,741 | 4,090,527 |
Land | 559,065 | 761,924 |
Property, Plant and Equipment, Gross | 6,358,757 | 6,639,867 |
Accumulated depreciation property plant and equipment | (3,607,699) | (3,534,607) |
Net book value | $ 2,751,058 | $ 3,105,260 |
5. Intangible Assets_ Schedul_2
5. Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Details | ||
Trademarks, trade names and other | $ 43,655 | $ 43,655 |
Accumulated amortization | (40,472) | (40,065) |
Net book value | $ 3,183 | $ 3,590 |
5. Intangible Assets (Details)
5. Intangible Assets (Details) | 12 Months Ended |
Aug. 31, 2018USD ($) | |
Details | |
Write off capitalized patent costs | $ 43,635 |
6. Deferred Income Taxes (Detai
6. Deferred Income Taxes (Details) - USD ($) | May 31, 2019 | Aug. 31, 2018 |
Details | ||
Deferred Tax Liabilities, Gross | $ 85,850 | $ 81,853 |
7. Bank Indebtedness (Details)
7. Bank Indebtedness (Details) | May 31, 2019USD ($) |
Details | |
Line of Credit Facility, Current Borrowing Capacity | $ 3,000,000 |
8. Capital Stock (Details)
8. Capital Stock (Details) | May 29, 2018 |
Details | |
Stockholders' Equity Note, Stock Split | The Company declared a two for one stock split of its common stock with a record date of the close of business on May 25, 2018. Shareholders received one additional common share for each common share held as of the record date. The stock split was effective as of May 29, 2018. Share and per share data have been retroactively adjusted to reflect the effects of the stock split. |
9. Cancellation of Capital St_2
9. Cancellation of Capital Stock (Details) - USD ($) | 3 Months Ended | |||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | |
Details | ||||
Shares repurchased and cancelled | 195,142 | 8,450 | 95,671 | 154,329 |
Payments for Repurchase of Common Stock | $ 1,704,543 | $ 63,929 | $ 893,376 | $ 1,271,599 |
Average price per share repurchased and cancelled | $ 8.73 | $ 7.57 | $ 9.34 | $ 8.24 |
Decrease to retained earnings | $ 1,658,509 | $ 61,936 | $ 870,805 | $ 1,235,191 |
Shares repurchased and cancelled | 195,142 | 8,450 | 95,671 | 154,329 |
11. Pension and Profit-sharin_2
11. Pension and Profit-sharing Plans (Details) - USD ($) | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Details | ||
Payment for Pension Benefits | $ 227,379 | $ 269,594 |
12. Segment Information_ Sche_3
12. Segment Information: Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Details | ||||
Industrial wood products, sales | $ 2,993,653 | $ 2,510,763 | ||
Lawn, garden, pet and other, sales | 28,435,820 | 37,514,801 | ||
Seed processing and sales, sales | 1,551,427 | 1,911,588 | ||
Industrial tools and clamps, sales | 634,616 | 752,865 | ||
SALES | $ 16,692,241 | $ 19,934,709 | 33,615,516 | 42,690,017 |
Industrial wood products, income before tax | 53,624 | (30,241) | ||
Lawn, garden, pet and other, income before tax | 1,300,444 | 2,556,910 | ||
Seed processing and sales, income before tax | (121,164) | 84,474 | ||
Industrial tools and clamps, income before tax | (20,604) | (9,833) | ||
Corporate and administrative income before tax | 969,706 | 687,698 | ||
Income before income taxes | $ 1,513,671 | $ 2,017,001 | 2,182,006 | 3,289,008 |
Industrial wood products, assets | 1,149,255 | 684,944 | ||
Lawn, garden, pet and other, assets | 13,703,422 | 13,977,679 | ||
Seed processing and sales, assets | 469,466 | 376,440 | ||
Industrial tools and clamps, assets | 450,888 | 460,438 | ||
Corporate and administrative assets | 6,682,067 | 9,552,222 | ||
Identifiable assets | 22,455,098 | 25,051,723 | ||
Industrial wood products, depreciation and amortization | 0 | 193 | ||
Lawn, garden, pet and other, depreciation and amortization | 16,585 | 58,108 | ||
Seed processing and sales, depreciation and amortization | 6,134 | 5,751 | ||
Industrial tools and clamps, depreciation and amortization | 367 | 848 | ||
Corporate and administrative depreciation and amortization | 120,327 | 202,070 | ||
Corporate and administrative depreciation and amortization | 143,413 | 266,970 | ||
Seed processing and sales capital expenditures | 0 | 18,547 | ||
Corporate and administrative capital expenditures | 8,112 | 80,890 | ||
Capital expenditures | 8,112 | 99,437 | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 0 | $ 0 |
12. Segment Information_ Sale_2
12. Segment Information: Sales in excess of ten percent of total sales (Details) - USD ($) | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Details | ||
Sales to customers in excess of 10% of total sales | $ 15,042,055 | $ 23,678,847 |
12. Segment Information_ Sche_4
12. Segment Information: Schedule of sales by country (Details) - USD ($) | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Details | ||
United States sales | $ 32,343,957 | $ 41,148,757 |
Canada sales | 979,510 | 1,139,399 |
Mexico/Latin America/Caribbean sales | 176,858 | 192,539 |
Middle east sales | 0 | 12,209 |
Europe sales | 36,138 | 27,095 |
Asia/Pacific sales | $ 79,053 | $ 170,018 |
13. Concentrations (Details)
13. Concentrations (Details) - USD ($) | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Details | ||
Concentration Risk, Customer | 66 | 53 |
Concentration, volume of purchases | $ 14,139,344 | $ 21,281,697 |
14. Supplemental Disclosure W_3
14. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Details | ||
Interest | $ 0 | $ 0 |
Income taxes | $ 676,000 | $ 1,184,983 |
15. Subsequent Events (Details)
15. Subsequent Events (Details) | 9 Months Ended |
May 31, 2019 | |
Details | |
Subsequent Event, Description | the Company repurchased an additional 36,300 common shares pursuant to the share repurchase plan announced on February 7, 2019 |