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Note 18 - Segment Information
 9 Months Ended
Aug. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
 

18)

Segment Information

 

In accordance with ASC 280, “Segment Reporting," the Company’s chief operating decision maker, or CODM, has been identified as its President, Chief Executive Officer and Chairman. The CODM reviews operating results to make decisions about allocating resources and assessing performance for the entire Company and utilizes gross profit and income from operations to evaluate segment performance and allocate resources. The Company's selling, general and administrative expenses and engineering expenses are charged to each segment as incurred by each reportable segment. The Company allocates a small portion of corporate expenses from the Agricultural Products segment to the Modular Buildings segment monthly for administrative support services provided.

 

The Company has two reportable segments: Agricultural Products and Modular Buildings. The Agricultural Products segment manufactures and sells farm equipment and related replacement parts under the Art’s-Way Manufacturing label. The Modular Buildings segment manufactures and installs modular buildings for various uses, commonly animal containment and research laboratories under the Art's Way Scientific and Evolution Modular labels. 

 

The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. Management evaluates the performance of each segment based on profit or loss from operations before income taxes, exclusive of nonrecurring gains and losses.

 

Approximate financial information with respect to the reportable segments is as follows.

 

  

Three Months Ended August 31, 2025

 
  

Agricultural Products

  

Modular Buildings

  

Consolidated (Continuing Operations)1

 

Revenue from external customers

 $2,983,000  $3,449,000  $6,432,000 

Gross profit

  546,000   1,220,000   1,766,000 

Operating Expense

  1,029,000   392,000   1,421,000 

Income (loss) from operations

  (483,000)  828,000   345,000 

Income (loss) before tax

  (491,000)  812,000   321,000 

Income tax expense (benefit)

 $(103,000) $170,000  $67,000 
             

Total Assets

 $18,323,000  $3,493,000  $21,816,000 

Capital expenditures2

  218,000   88,000   306,000 

Depreciation & Amortization

  150,000   45,000   195,000 

Interest expense

  68,000   16,000   84,000 

Engineering

  87,000   -   87,000 

Selling

  199,000   152,000   351,000 

General and administrative (G&A)

  743,000   240,000   983,000 

Corporate expense (included in G&A)

 $85,000  $45,000  $130,000 

 

 

 

  

Three Months Ended August 31, 2024

 
  

Agricultural Products

  

Modular Buildings

  

Consolidated (Continuing Operations)1

 

Revenue from external customers

 $2,988,000  $2,888,000  $5,876,000 

Gross profit

  814,000   886,000   1,700,000 

Operating Expense

  1,287,000   259,000   1,546,000 

Income (loss) from operations

  (472,000)  626,000   154,000 

Income (loss) before tax

  (618,000)  618,000   - 

Income tax expense (benefit)

 $(130,000) $127,000  $(3,000)
             

Total Assets

 $19,311,000  $3,136,000  $22,447,000 

Capital expenditures

  50,000   52,000   102,000 

Depreciation & Amortization

  163,000   66,000   229,000 

Interest Expense

  140,000   10,000   150,000 

Engineering

  79,000   -   79,000 

Selling

  303,000   78,000   381,000 

General and administrative (G&A)

  905,000   181,000   1,086,000 

Corporate expense (included in G&A)

 $162,000  $30,000  $192,000 

 

  

Nine Months Ended August 31, 2025

 
  

Agricultural Products

  

Modular Buildings

  

Consolidated (Continuing Operations)1

 

Revenue from external customers

 $9,956,000  $7,954,000  $17,910,000 

Gross profit

  2,428,000   2,894,000   5,322,000 

Operating Expense

  3,340,000   1,125,000   4,465,000 

Income (loss) from operations

  (911,000)  1,769,000   858,000 

Income (loss) before tax

  176,000   1,951,000   2,127,000 

Income tax expense (benefit)

 $37,000  $409,000  $446,000 
           - 

Total Assets

 $18,323,000  $3,493,000  $21,816,000 

Capital expenditures2

  419,000   153,000   572,000 

Depreciation & Amortization

  445,000   148,000   593,000 

Interest expense

  214,000   45,000   259,000 

Engineering

  257,000   -   257,000 

Selling

  666,000   471,000   1,137,000 

General and administrative (G&A)

  2,417,000   654,000   3,071,000 

Corporate expense (included in G&A)

 $325,000  $135,000  $460,000 

 

 

 

 

  

Nine Months Ended August 31, 2024

 
  

Agricultural Products

  

Modular Buildings

  

Consolidated (Continuing Operations)1

 

Revenue from external customers

 $11,779,000  $6,550,000  $18,329,000 

Gross profit

  3,278,000   1,802,000   5,080,000 

Operating Expense

  4,336,000   802,000   5,138,000 

Income (loss) from operations

  (1,057,000)  999,000   (58,000)

Income (loss) before tax

  (1,516,000)  973,000   (543,000)

Income tax expense (benefit)

 $(318,000) $202,000  $(116,000)
             

Total Assets

 $19,311,000  $3,136,000  $22,447,000 

Capital expenditures

  438,000   176,000   614,000 

Depreciation & Amortization

  472,000   192,000   664,000 

Interest expense

  443,000   28,000   471,000 

Engineering

  346,000   1,000   347,000 

Selling

  1,010,000   232,000   1,242,000 

General and administrative (G&A)

  2,980,000   569,000   3,549,000 

Corporate expense (included in G&A)

 $486,000  $90,000  $576,000 

 

 

1.

The consolidated total in the tables is a sum of segment figures and may not tie to actual figures in the condensed consolidated financial statements due to rounding.

2.

Includes $45,000 of Right of Use Assets acquired in the Agricultural Products Segment.

3.

Includes $97,000 of Right of Use Assets acquired in the Agricultural Products Segment.