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What changed in ARTS WAY MANUFACTURING CO INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of ARTS WAY MANUFACTURING CO INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+96 added−104 removedSource: 10-K (2024-02-28) vs 10-K (2023-02-16)

Top changes in ARTS WAY MANUFACTURING CO INC's 2023 10-K

96 paragraphs added · 104 removed · 69 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThe marketing of the tools is primarily through independent distributors supplying manufacturers with industrial tools and supplies. We plan to continue our focus on providing cutting tools to industries such as automotive, aerospace, oil and gas piping, and appliances. 2 Our Principal Agricultural Products Arthur Luscombe built the first PTO powered grinder mixer on his farm near Dolliver, Iowa.
Biggest changeIn addition to selling these facilities, we also offer a lease option to customers in need of temporary facilities. 2 Table of Contents Our Principal Agricultural Products Arthur Luscombe built the first PTO powered grinder mixer on his farm near Dolliver, Iowa.
We take pride in our manure spreaders, forage equipment, bale processors, dirt work equipment, sugar beet harvesting equipment and feed mills. We provide limited OEM work to some of the industry’s leading manufacturers. Feed mills. There’s no one better than Art’s Way when it comes to processing feed.
We take pride in our manure spreaders, forage equipment, bale processors, dirt work equipment, sugar beet harvesting equipment and feed mills. We provide limited OEM parts to some of the industry’s leading manufacturers. Feed mills. There’s no one better than Art’s Way when it comes to processing feed.
We have organized our business into three operating segments. Management separately evaluates the financial results of each segment because each is a strategic business unit offering different products and requiring different technology and marketing strategies. Our Agricultural Products segment manufactures and distributes farm equipment under the Art’s-Way name.
We have organized our business into two operating segments. Management separately evaluates the financial results of each segment because each is a strategic business unit offering different products and requiring different technology and marketing strategies. Our Agricultural Products segment manufactures and distributes farm equipment under the Art’s-Way name.
The leaves are incorporated back into the soil to provide nutrients for next year’s crop. Product Distribution and Markets We distribute goods for our Agricultural Products segment primarily through a network of approximately 1,000 U.S. and Canadian independent dealers, as well as overseas dealers in Australia, Japan and the United Kingdom, whose customers require specialized agricultural machinery.
The leaves are incorporated back into the soil to provide nutrients for next year’s crop. Product Distribution and Markets We distribute goods for our Agricultural Products segment primarily through a network of approximately 600 U.S. and Canadian independent dealers, as well as overseas dealers in Australia, Japan and the United Kingdom, whose customers require specialized agricultural machinery.
Our Tools and Modular Buildings segments complete projects based on customer specifications and did not engage in specific product development during the 2022 fiscal year. Competition Each of our segments have competitive strengths described below. In addition to individual competitive strengths, the barrier to entry for competitors in our industries is high.
Our Modular Buildings segments complete projects based on customer specifications and did not engage in specific product development during the 2023 fiscal year. Competition Each of our segments have competitive strengths described below. In addition to individual competitive strengths, the barrier to entry for competitors in our industries is high.
We sell products to customers in the United States and nine foreign countries through a network of approximately 1,000 independent dealers in the United States and Canada, as well as overseas dealers in Australia, Japan and the United Kingdom. 4 We believe that our competitive pricing, product quality and performance, network of worldwide and domestic distributors, and strong market share for many of our products allow us to compete effectively in the agricultural products market.
We sell products to customers in the United States and nine foreign countries through a network of approximately 600 independent dealers in the United States and Canada, as well as overseas dealers in Australia, Japan and the United Kingdom. 4 Table of Contents We believe that our competitive pricing, product quality and performance, network of worldwide and domestic distributors, and strong market share for many of our products allow us to compete effectively in the agricultural products market.
Item 1. BUSINESS . General Art’s-Way Manufacturing Co., Inc., a Delaware corporation (“we,” “us,” “our,” and the “Company”), began operations as a farm equipment manufacturer in 1956. Since that time, we have become a worldwide manufacturer of agricultural equipment, specialized modular science buildings and steel cutting tools. Our principal manufacturing plant is located in Armstrong, Iowa.
Item 1. BUSINESS . General Art’s-Way Manufacturing Co., Inc., a Delaware corporation (“we,” “us,” “our,” and the “Company”), began operations as a farm equipment manufacturer in 1956. Since that time, we have become a worldwide manufacturer of agricultural equipment and specialized modular science and agricultural buildings. Our principal manufacturing plant and corporate headquarters is located in Armstrong, Iowa.
The buildings we commonly produce range from basic swine buildings to complex containment research laboratories. We plan to continue our focus on providing research facilities for academic research institutions, government research and diagnostic centers, public health institutions and private research and pharmaceutical companies, as those are our primary market sectors.
The buildings we commonly produce range from basic swine buildings to complex containment research laboratories. Our focus is providing research facilities for academic research institutions, government research and diagnostic centers, public health institutions and private research and pharmaceutical companies, as those are our primary market sectors.
Modular Buildings Our Modular Buildings segment, which accounted for 16.7% of our net revenue in the 2022 fiscal year and 22.7% of our net revenue in the 2021 fiscal year, is located in Monona, Iowa. This segment produces, sells and leases modular buildings, which are custom-designed to meet the specific research needs of our customers.
Modular Buildings Our Modular Buildings segment, which accounted for 25.8% of our net revenue in the 2023 fiscal year and 18.5% of our net revenue in the 2022 fiscal year, is located in Monona, Iowa. This segment produces, sells and leases modular buildings, which are custom-designed to meet the specific research needs of our customers.
We saw lead times increase on raw materials in 2021 as labor shortages from the COVID-19 pandemic left many of our suppliers understaffed. Lead times remained heightened in 2022 as the labor market continued to stay tight. We do rely on foreign suppliers and foreign markets for materials and components for some of our products.
We saw lead times increase on raw materials in 2022 as labor shortages from the COVID-19 pandemic left many of our suppliers understaffed. Lead times remained heightened during most of fiscal 2023 and began to soften near the end of fiscal 2023. We rely on foreign suppliers and foreign markets for materials and components for some of our products.
Business of Our Segments Agricultural Products Our Agricultural Products segment, which accounted for 73.6% of our net revenue in the 2022 fiscal year and 67.4% of our net revenue in the 2021 fiscal year, is located primarily in Armstrong, Iowa.
Business of Our Segments Agricultural Products Our Agricultural Products segment, which accounted for 74.2% of our net revenue in the 2023 fiscal year and 81.5% of our net revenue in the 2022 fiscal year, is located primarily in Armstrong, Iowa.
We also have a licensing and royalty agreement with Spreader, LLC to produce a loader mounted spreader in exchange for royalty payments until December 2027. 5 Government Relationships and Regulations; Environmental Compliance Our Modular Buildings segment must design, manufacture, and install its modular buildings in accordance with state building codes, and we have been able to achieve the code standards in all instances.
Government Relationships and Regulations; Environmental Compliance Our Modular Buildings segment must design, manufacture, and install its modular buildings in accordance with state building codes, and we have been able to achieve the code standards in all instances.
We provide services from start to finish by designing, manufacturing, delivering and installing these facilities to meet customers’ critical requirements. In addition to selling these facilities, we also offer a lease option to customers in need of temporary facilities.
We provide services from start to finish by designing, manufacturing, delivering and installing these facilities to meet customers’ critical requirements.
Our local service parts staff is available to help customers and dealers with their service parts needs. Our Modular Buildings segment typically sells products customized to the end-user’s requirements directly to the end-user. Our Tools segment distributes products through manufacturers’ representatives, direct sales, and OEM sales channels. We currently export products to nine foreign countries.
Our local service parts staff is available to help customers and dealers with their service parts needs. Our Modular Buildings segment typically sells products customized to the end-user’s requirements directly to the end-user. We currently export products to nine foreign countries. We have been shipping grinder mixers abroad since 2006 and have exported portable rollermills as well.
As one of the few companies in the industry to supply turnkey modular buildings and laboratories, we believe we provide high-quality buildings at reasonable prices that meet our customers’ time, flexibility, and security expectations. Tools Competition in our Tools segment from offshore products that have gained market share over the last 20 years.
As one of the few companies in the industry to supply turnkey modular buildings and laboratories, we believe we provide high-quality buildings at reasonable prices that meet our customers’ time, flexibility, and security expectations. Raw Materials, Principal Suppliers, and Customers Raw materials for our various segments are acquired from domestic and foreign sources and normally are readily available.
We have been shipping grinder mixers abroad since 2006 and have exported portable rollermills as well. We continue to strengthen these relationships and intend to develop new international markets. Our international sales accounted for 4.5% of consolidated sales during the 2022 fiscal year compared to 2.6% in the 2021 fiscal year. 3 Backlog.
We continue to strengthen these relationships and intend to develop new international markets. Our international sales accounted for 3.1% of consolidated sales during the 2023 fiscal year compared to 4.5% in the 2022 fiscal year. 3 Table of Contents Backlog. The Company’s backlog of orders vary on a daily basis.
Our Modular Buildings segment manufactures modular buildings for various uses, commonly animal containment and research laboratories, through our wholly-owned subsidiary, Art’s-Way Scientific, Inc., an Iowa corporation.
Our Modular Buildings segment manufactures modular buildings for various uses, commonly animal containment and research laboratories, through our wholly-owned subsidiary, Art’s-Way Scientific, Inc., an Iowa corporation. During the third quarter of fiscal 2023, the Company ceased operations of its Tools business, which in previous periods, was reported in consolidated numbers as the Company's third operating segment.
We expect that our order backlogs will continue to fluctuate as orders are received, filled, or canceled, and, due to dealer discount arrangements we may enter into from time to time, these figures are not necessarily indicative of future revenue. Recent Product Developments In 2022, we made product improvements to improve manufacturability and to meet our customer’s evolving needs.
Accordingly, these figures are not necessarily indicative of future revenue. Recent Product Developments In 2023, we continued to make product improvements that improve manufacturability and to meet our customer’s evolving needs.
This agreement expired on October 27, 2022. The Company has not entered into a new supplier agreement with CNH to date but continues to transact with CNH. We do not typically rely on sales to one customer or a small group of customers. During the 2022 fiscal year, one customer accounted for just more than 11% consolidated net revenues.
However, these suppliers are not principal suppliers and there are alternative sources for these materials. We do not typically rely on sales to one customer or a small group of customers. During the 2023 fiscal year, one customer accounted for just more than 12% consolidated net revenues from continuing operations.
Employees As of November 30, 2022, we employed 97 employees in our Agricultural Products segment including one on a part-time basis, 26 employees in our Tools segment, one of whom was employed on a part-time basis and 26 full-time employees in our Modular Buildings segment.
Employees As of November 30, 2023, we employed 93 employees in our Agricultural Products segment including two on a part-time basis, and 31 employees in our Modular Buildings segment, two on a part-time basis. These numbers do not necessarily represent peak employment during the 2023 fiscal year. 5 Table of Contents
Our Modular Buildings segment had approximately of $4,985,000 of backlog as of February 6, 2023, compared to $1,243,000 on that date in 2022. The Modular Buildings segment had a slow first six months to start fiscal 2022 and our 2022 results were carried by agricultural building revenue.
The Company’s Modular Buildings segment had approximately $6,170,00 of backlog as of February 1, 2024, compared to $4,985,000 on that date in 2023. The Modular Buildings segment contracted a $5,300,000 research project in December 2023, which is expected to be mostly completed in fiscal 2024.
Removed
Our Tools segment manufactures standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and OEM tools through our wholly-owned subsidiary, Ohio Metal Working Products/Art’s-Way, Inc., an Ohio corporation. For detailed financial information relating to segment reporting, see Note 16 “Segment Information” to our financial statements in “Item 8.
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The remaining components of the Tools segment are reported in discontinued operation for the twelve months ended November 30, 2023 and has been modified retrospectively to be reported in discontinued operations for the twelve months ended November 30, 2022. For detailed financial information relating to segment reporting, see Note 18 “Segment Information” to our financial statements in “Item 8.
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Tools Our Tools segment, which is located in Canton, Ohio, accounted for 9.7% of our net revenue in the 2022 fiscal year and 9.9% of our net revenue in the 2021 fiscal year.
Added
The Company’s Agricultural Products segment had a net backlog of approximately $4,364,000 as of February 1, 2024 compared to $9,366,000 on February 1, 2023. The Company saw a decline in orders on its fall early order program for the first time in three years.
Removed
This segment produces and sells standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and tools and OEM specialty tools. The tools are used by manufacturers in various industries to cut and shape various parts, pipes, and fittings.
Added
The Company believes high interest rates are affecting how much risk the dealers are willing to take on stock inventory. While the Company believes farmers are still going to be creating strong demand in 2024, the Company believes it is going to have to be more speculative with its products and have more inventory on hand.
Removed
Our backlogs of orders vary on a daily basis. As of February 6, 2023, our Tools segment had approximately $556,000 of backlog compared to $578,000 from the same date in 2022. We continue to see heightened demand in this segment from our OEM and oil and gas industry customers.
Added
The Company also has two other large research projects with a combined contract price over $6,000,000 that it is expected to land in fiscal 2024. The Company expects that its order backlogs will continue to fluctuate as orders are received, filled, or canceled, and, due to dealer discount arrangements it may enter into from time to time.
Removed
Our 2023 backlog numbers and research building quoting activity would lead us to believe we will see improved results in fiscal 2023. Our Agricultural Products segment had a net backlog of approximately $9,549,000 as of February 6, 2023 compared to $10,513,000 on February 6, 2022. The strong demand in our Agricultural Products is continuing for the third straight fiscal year.
Added
We worked on the development of a chicken litter variation for our manure spreaders, a sonar leveling system for our defoliators, performed redesign work on our commercial forage box and also took steps to improve the design of our grinder mixers for manufacturability and cost savings.
Removed
We positioned ourselves in fiscal 2022 to more efficiently manufacture our products through the purchasing of robotic weld cells and a high definition plasma cutter. We anticipate we will continue to see improved results as the strong agriculture demand continues.
Added
We currently have no pending applications for intellectual property rights. We have a licensing and royalty agreement with Spreader, LLC to produce a loader mounted spreader in exchange for royalty payments until December 2027.
Removed
Most notably, we worked on designs to capture market share of smaller manure spreaders and added truck mount features to our existing manure spreader sizes. We also worked on redesign of commercial forage boxes, improved the functionality of our high dump and enhanced the design on our defoliators.
Removed
Our greatest threat continues to be emerging technologies that replace the need for brazed tools. These competitive threats are countered by our ability to offer the widest range of standard carbide tipped brazed tool inventories to be found in North America.
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These inventories are strategically located in four warehouses across the United States, enabling our customers to receive product quickly with minimal shipping costs. Our ability to produce special, engineered, value-added products in volume with short lead times sets us apart from our competitors.
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This is most evident in certain segments of the pipe processing industry, where we have been able to establish and maintain market share despite efforts from companies significantly larger than ourselves. Raw Materials, Principal Suppliers, and Customers Raw materials for our various segments are acquired from domestic and foreign sources and normally are readily available.
Removed
However, these suppliers are not principal suppliers and there are alternative sources for these materials. We previously had an OEM supplier agreement with Case New Holland (“CNH”) for our Agricultural Products segment. Under the OEM agreement, we agreed to supply CNH’s requirements for certain feed processing and service parts, primarily blowers, under CNH’s label.
Removed
We currently have no pending applications for intellectual property rights. We pay royalties for our use of certain manufacturing rights. Under our previous OEM supplier agreement with CNH, CNH sold us the license to manufacture, sell, and distribute certain plow products designed by CNH and their replacement and component parts.
Removed
In fiscal 2022, we were liable to pay semi-annual royalty payments based on the invoiced price of each licensed product and service part we sell.
Removed
The majority of the employees in our Tools segment are represented by a union and covered by a collective bargaining agreement which expires on June 30, 2024. These numbers do not necessarily represent peak employment during the 2022 fiscal year.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe completed construction in November 2007 of our facility in Monona, Iowa, which houses the manufacturing for our Modular Buildings segment. The facility was custom-designed to meet our production needs. It has approximately 50,000 square feet of useable space and accommodates a sprinkler system and crane.
Biggest changeIn addition, we own approximately 30 acres of land west of Armstrong, on which the factory and inventory storage space is situated for our Agricultural Products segment. Our facility in Monona, Iowa was constructed by us in 2007, which houses the manufacturing for our Modular Buildings segment. The facility was custom-designed to meet our production needs.
In connection with the acquisition of certain assets of Ohio Metal Working Products Company in September 2013, we also purchased the land and building used for manufacturing of the products sold by Ohio Metal Working Products Company, located in Canton, Ohio. The building contains approximately 39,000 square feet of usable space and is in good condition.
Our facility in Canton, OH was purchased in connection with the acquisition of certain assets of Ohio Metal Working Products Company in September 2013. The building contains approximately 39,000 square feet of usable space and is in good condition. The purchased land is approximately 4.50 acres and was used by our Tools segment.
The purchased land is approximately 4.50 acres and is used by our Tools segment. All of our owned real property is subject to mortgages granted to Bank Midwest as security for our long-term debt and our line of credit. See “Item 7.
This property is currently listed for sale at market value. All of our owned real property is subject to mortgages granted to Bank Midwest as security for our long-term debt and our line of credit. See “Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS – Liquidity and Capital Resources” for more information.
We have engaged in several building improvement projects during the last several years including most recently updating our office spaces and employee break room in 2021. In addition, we own approximately 30 acres of land west of Armstrong, on which the factory and inventory storage space is situated for our Agricultural Products segment.
We have engaged in several building improvement projects during the last several years including most recently updating our office spaces and employee break room in 2021, new shop and office boilers and roofing improvements in 2022 and remodeling our production facility bathrooms in fiscal 2023.
Removed
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS – Liquidity and Capital Resources” for more information.
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It has approximately 50,000 square feet of useable space and accommodates a sprinkler system and crane. We own a second building to the east with approximately 12,000 square feet of space which is used as our weld shop for building frames.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeNo shares of preferred stock have been issued or are outstanding. As of February 6, 2023, we had 77 common stock stockholders of record, which number does not include stockholders who hold our common stock in street name. Dividends We did not pay a dividend during the 2022 or 2021 fiscal years.
Biggest changeNo shares of preferred stock have been issued or are outstanding. As of February 14, 2023 we had 73 common stock stockholders of record, which number does not include stockholders who hold our common stock in street name. Dividends We did not pay a dividend during the 2023 or 2022 fiscal years.
We expect that the payment of and the amount of any future dividends will depend on our financial condition at that time. Unregistered Sales of Equity Securities None. Purchases of Equity Securities by the Company There were no purchases of common stock by the Company made in the fourth quarter of fiscal 2022.
We expect that the payment of and the amount of any future dividends will depend on our financial condition at that time. Unregistered Sales of Equity Securities None. Purchases of Equity Securities by the Company There were no purchases of common stock by the Company made in the fourth quarter of fiscal 2023.
Equity Compensation Plans For information on our equity compensation plans, refer to Item 12, “SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.”
Equity Compensation Plans For information on our equity compensation plans, refer to Item 12, “SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.” Item 6. RESERVED

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

41 edited+20 added−20 removed22 unchanged
Biggest changeOur general and administrative expenses increased approximately $100,000 due to increased administrative wages as we added an additional project manager to help manage our project workload. Total loss from operations from our Modular Buildings segment during the 2022 fiscal year was $600,000 compared to operating income of $74,000 in the 2021 fiscal year. Tools .
Biggest changeTotal income from operations from our Modular Buildings segment during the 2023 fiscal year was $867,000 compared to operating loss of $600,000 in the 2022 fiscal year. We took steps in fiscal 2023 to improve our project management team to increase profitability on projects and to provide better service to our customers.
Item 7. MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. ’ The following discussion, which focuses on our results of operations, contains forward-looking information and statements.
Item 7. MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. The following discussion, which focuses on our results of operations, contains forward-looking information and statements.
The credit terms on this agreement are consistent with the credit terms on all other sales. All risks of loss are shouldered by the customer, and there are no exceptions to the customer’s commitment to accept and pay for these manufactured goods.
The credit terms on this agreement are consistent with the credit terms on other sales. All risks of loss are shouldered by the customer, and there are no exceptions to the customer’s commitment to accept and pay for these manufactured goods.
Our loans require us to comply with various covenants, including maintaining certain financial ratios and obtaining prior written consent from Bank Midwest for any investment in, acquisition of, or guaranty relating to another business or entity. We were out of compliance with our debt to worth ratio covenant in place under the Bank Midwest loans as of November 30, 2022.
Our loans require us to comply with various covenants, including maintaining certain financial ratios and obtaining prior written consent from Bank Midwest for any investment in, acquisition of, or guaranty relating to another business or entity. We were out of compliance with our debt to worth ratio covenant in place under the Bank Midwest loans as of November 30, 2023.
We recognize revenue for the production and sale of farm equipment, service parts and cutting tools upon shipment of the goods. Shipment of the goods is the point in time when risk of ownership and title pass to the customer.
We recognize revenue for the production and sale of farm equipment and service parts upon shipment of the goods. Shipment of the goods is the point in time when risk of ownership and title pass to the customer.
Critical accounting policies are those that we believe are both important to the portrayal of our financial condition and results of operations and require our most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this report. Critical accounting policies are those that we believe are both important to the portrayal of our financial condition and results of operations and require our most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
Seasonality Sales of our agricultural products are seasonal; however, we have tried to decrease the impact of this seasonality through the development of beet harvesting machinery, as the peak periods for these products occur at different times. We believe that our tool sales are not seasonal.
Seasonality Sales of our agricultural products are seasonal; however, we have tried to decrease the impact of this seasonality through the development of beet harvesting machinery, as the peak periods for these products occur at different times.
We believe that the following represents the most critical accounting policies and estimates used in the preparation of our consolidated financial statements. Inventories Inventories are stated at the lower of cost or net realizable value, and cost is determined using the standard costing method.
We believe that the following represents the most critical accounting policies and estimates used in the preparation of our consolidated financial statements. Inventories Inventories are stated at the lower of cost or net realizable value, and cost is determined using the standard costing method, which approximates costs determined on the first-in, first-out basis.
Revenues recognized when goods were ready for shipment in fiscal 2022 were approximately $1,010,000 compared to $711,000 in fiscal 2021. 8 The Modular Buildings segment is in the construction industry with its major source of revenue arising from modular building sales.
Revenues recognized when goods were ready for shipment in fiscal 2023 were approximately $3,110,000 compared to $1,010,000 in fiscal 2022. 8 Table of Contents The Modular Buildings segment is in the construction industry with its major source of revenue arising from modular building sales.
Bank Midwest has issued a waiver forgiving the noncompliance as of November 30, 2022, and in turn waived the event of default. 11 For additional information about our financing activities, please refer to Note 9 “Loan and Credit Agreements” to our financial statements in “Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this report.
Bank Midwest has issued a waiver for the noncompliance as of November 30, 2023. 11 Table of Contents For additional information about our financing activities, please refer to Note 9 “Loan and Credit Agreements” to our financial statements in “Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this report.
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 major sources of revenue for the Agricultural Products segment are farm equipment and service parts related to farm equipment. The Agricultural Products segment generally executes short-term contracts that contain a single performance obligation – the delivery of product to the common carrier.
Direct government payments have been increasing in the past two years and costs of agricultural production are increasing; therefore, we anticipate that further increases in the value of production will benefit our business, while any future decreases in the value of production will decrease farm net income and may negatively affect our financial results.
Direct government payment over the past few years and costs of agricultural production are increasing; further increases in the value of production will benefit our business, while any future decreases in the value of production will decrease farm net income and may negatively affect our financial results.
Freight costs incurred are included in cost of goods sold. Customer deposits consist of advance payments from customers, in the form of cash, for revenue to be recognized in the following year. For information on product warranty as it applies to ASC 606, refer to Note 8 “Product Warranty” contained in our financial statements in “Item 8.
Customer deposits consist of advance payments from customers, in the form of cash, for revenue to be recognized in the following year. For information on product warranty as it applies to ASC 606, refer to Note 9 “Product Warranty” contained in our financial statements in “Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this report.
The following table represents our working capital and current ratio as of the end of the past two fiscal years: November 30, 2022 November 30, 2021 Current Assets $ 14,133,429 $ 12,174,245 Current Liabilities 9,267,289 7,686,817 Working Capital $ 4,866,140 $ 4,487,428 Current Ratio 1.53 1.58 We believe that our current cash and financing arrangements will provide sufficient cash to finance operations for the next 12 months.
The following table represents our working capital and current ratio as of the end of the past two fiscal years: November 30, 2023 November 30, 2022 Current Assets $ 15,085,494 $ 14,133,429 Current Liabilities 9,395,023 9,267,289 Working Capital $ 5,690,471 $ 4,866,140 Current Ratio 1.61 1.53 We believe that our current cash and financing arrangements will provide sufficient cash to finance operations for the next 12 months.
This variable consideration is allocated to the transaction price of all products in a sales arrangement and is not contingent on future outcomes. The Agricultural Products segment does not offer rebates or credits. The Tools segment offers quantity discounts that are allocated to the transaction price of each product once the quantity break is achieved.
This variable consideration is allocated to the transaction price of all products in a sales arrangement and is not contingent on future outcomes. The Agricultural Products segment does not offer rebates or credits. The Modular Buildings segment does not offer discounts, rebates or credits.
At the customer’s request, we will bill the customer upon completing all performance obligations, but before shipment. The customer dictates that we ship the goods per its direction from our manufacturing facility, as is customary with this type of agreement, in order to minimize shipping costs.
The customer dictates that we ship the goods per its direction from our manufacturing facility, as is customary with this type of agreement, in order to minimize shipping costs.
The Tools segment does not offer rebates or credits. The Modular Buildings segment does not offer discounts, rebates or credits. Our 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 returnable. Shipping costs charged to customers are included in net sales.
Our 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 returnable. Shipping costs charged to customers are included in net sales. Freight costs incurred are included in cost of goods sold.
We have a Bank Midwest credit facility consisting of a $5,000,000 revolving line of credit, pursuant to which we had borrowed $3,924,500, with $1,075,500 remaining, as of November 30, 2022, and two term loans, which had outstanding principal balances of $2,165,554 and $344,932 as of November 30, 2022. The revolving line of credit is being used for working capital purposes.
We have a Bank Midwest credit facility consisting of a $5,000,000 revolving line of credit and a $500,000 reserve line of credit, pursuant to which we had borrowed a combined $4,413,520, with $1,086,480 remaining, as of November 30, 2023, and two term loans, which had outstanding principal balances of $2,080,718 and $336,858 as of November 30, 2023.
The increase in revenue is due to increased demand in the Agricultural Products and Tools segments. Our consolidated gross profit as a percentage of net sales decreased to 25.7% in the 2022 fiscal year compared to 26.4% of net sales in the 2021 fiscal year.
We increased revenue in both our Agricultural Products and Modular Building segments in fiscal 2023. Our consolidated gross profit as a percentage of net sales increased to 28.3% in the 2023 fiscal year compared to 27.1% of net sales in the 2022 fiscal year.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this report. Results of Operations Fiscal Year Ended November 30, 2022 Compared to Fiscal Year Ended November 30, 2021 Our consolidated net sales totaled $28,400,000 for the 2022 fiscal year, which represents a 13.8% increase from our consolidated net sales of $24,965,000 for the 2021 fiscal year.
Results of Operations Fiscal Year Ended November 30, 2023 Compared to Fiscal Year Ended November 30, 2022 Our consolidated net sales from continuing operations totaled $30,281,000 for the 2023 fiscal year, which represents a 18.1% increase from our consolidated net sales of $25,646,000 for the 2022 fiscal year.
Gross profit percentage for the 2022 fiscal year was 30.8% compared to 30.7% for the 2021 fiscal year. While the price of steel began to drop near the end of fiscal 2022, we saw component prices and manufacturing overhead increase in fiscal 2022.
Incoming orders began to slow near the end of fiscal 2023 as supply chains in our industry began to catch up to demand. Gross profit percentage for the 2023 fiscal year was 29.3% compared to 30.8% for the 2022 fiscal year. We saw component prices and manufacturing overhead continue to increase from inflationary forces in fiscal 2023.
Our Agricultural Products segment had operating income of $1,205,000, our Modular Buildings segment had operating loss of $600,000 and our Tools segment had an operating loss of $272,000. 9 Consolidated net income for the 2022 fiscal year was $98,000 compared to net income of $213,000 in the 2021 fiscal year.
Our Agricultural Products segment had operating income of $664,000, and our Modular Buildings segment had operating income of $867,000. 9 Table of Contents Consolidated net income for the 2023 fiscal year was $267,000 compared to net income of $98,000 in the 2022 fiscal year. Our effective tax rate for the 2023 and 2022 fiscal years was 29.8% and 16.4%, respectively.
Proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier. Post shipment obligations are limited to any claim with respect to the condition of the equipment or parts. The Agricultural Products and Tools segments each typically require payment in full 30 days after the ship date.
Post shipment obligations are limited to any claim with respect to the condition of the equipment or parts. The Agricultural Products segments typically require payment in full 30 days after the ship date. To take advantage of program discounts, some customers pay deposits up front. Any deposits received are considered unearned revenue and increase contract liabilities.
Any changes in our terms are documented in the most recently published price lists. Pricing is fixed and determinable according to our published equipment and parts price lists. Title to all equipment and parts sold pass to the customer upon delivery to the carrier and is not subject to a customer acceptance provision.
Title to all equipment and parts sold pass to the customer upon delivery to the carrier and is not subject to a customer acceptance provision. Proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier.
Liquidity and Capital Resources Our main source of funds during the 2022 fiscal year was cash generated by operating activities. Deposits from our early program and use of trade payables funded our operations in fiscal 2022.
Liquidity and Capital Resources Our main source of funds during the 2023 fiscal year was cash generated by financing activities. Income from continuing operations, sale of inventory and property, plant and equipment of our discontinued operations and the use of our line of credit were used to fund our operating and investing activities.
Total loss from operations from our Tools segment during the 2022 fiscal year was $272,000 compared to operating loss of $150,000 in the 2021 fiscal year. 10 Trends and Uncertainties We are subject to a number of trends and uncertainties that may affect our short-term or long-term liquidity, sales revenues, and operations.
Management believes the liquidation of the Tools segment will allow for investment in technological advances that improve efficiency and margins in the Agricultural Products segments, our largest revenue source. 10 Table of Contents Trends and Uncertainties We are subject to a number of trends and uncertainties that may affect our short-term or long-term liquidity, sales revenues, and operations.
We are focused on additional capital expenditures in fiscal 2023 to improve our operations as cash flow allows. Our Agricultural Products segment’s operating expenses for the 2022 fiscal year were $5,239,000 compared to $4,571,000 for the 2021 fiscal year, an increase of $668,000, or 14.6%.
We have identified additional ways to improve our profit margin through automation and continue to make that a focus in fiscal 2024. Our Agricultural Products segment’s operating expenses for the 2023 fiscal year were $5,920,000 compared to $5,239,000 for the 2022 fiscal year, an increase of $681,000, or 13.0%.
To take advantage of program discounts, some customers pay deposits up front. Any deposits received are considered unearned revenue and increase contract liabilities. In certain circumstances, upon the customer’s written request, we may recognize revenue when production is complete, and the goods are ready for shipment.
In certain circumstances, upon the customer’s written request, we may recognize revenue when production is complete, and the goods are ready for shipment. At the customer’s request, we will bill the customer upon completing all performance obligations, but before shipment.
Our effective tax rate for the 2022 and 2021 fiscal years was 16.4% and 20.3%, respectively. Agricultural Products. Our Agricultural Products segment’s net sales for the 2022 fiscal year were $20,912,000 compared to $16,826,000 during the 2021 fiscal year, an increase of $4,086,000, or 24.3%.
Our Agricultural Products segment’s net sales for the 2023 fiscal year were $22,467,000 compared to $20,912,000 during the 2022 fiscal year, an increase of $ 1,555,000, or 7.4%. Commodity prices in the agricultural market remained strong for the majority of fiscal 2023, and our production execution on our pent up backlog led to the increase in sales in fiscal 2023.
We do not foresee liquidity issues within the next twelve months. 7 Critical Accounting Policies Our significant accounting policies are described in Note 1 “Summary of Significant Accounting Policies” to our financial statements in “Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this report.
We expect to continue to rely on cash from financing activities to supplement our cash flows from operations in order to meet our liquidity and capital expenditure needs in the near future. 7 Table of Contents Critical Accounting Policies Our significant accounting policies are described in Note 1 “Summary of Significant Accounting Policies” to our financial statements in “Item 8.
Our engineering expenses increased approximately $73,000 from fiscal 2021 due to increased salaries and benefit costs. Total income from operations for our Agricultural Products segment during the 2022 fiscal year was $1,205,000 compared to $599,000 for the 2021 fiscal year, an improvement of $606,000.
Total income from operations for our Agricultural Products segment during the 2023 fiscal year was $664,000 compared to $1,205,000 for the 2022 fiscal year. Inflationary forces on components, manufacturing overhead, product mix with lesser profit margin compared to fiscal 2022 and increased operating expenses as discussed above were primary drivers of less operating income for fiscal 2023.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ” of this report. Financial Condition We recorded our second straight year of profitability in fiscal 2022 and saw significant success in our Agricultural Products segment. Our consolidated revenues increased 14% year on year and over 24% from fiscal 2020.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ” of this report. Financial Condition Our Agricultural Products segment continued its profitability for the third straight year in fiscal 2023. Our Modular Buildings segment added a strong financial performance for fiscal 2023.
As we transition into fiscal 2023, we are showing increased demand in all three operating segments. Our consolidated balance sheet indicates a stable financial position as of November 30, 2022. We finished the year with approximately $98,000 of consolidated net income and saw our working capital increase by approximately $379,000.
Our consolidated revenues from continued operations increased 18.1% year on year and we had $1,531,000 of income from continuing operations for the fiscal year ended November, 30 2023. We finished the year ended November 30, 2023 with approximately $763,000 of consolidated net income from continued operations and saw our working capital increase by approximately $824,000.
The Tools segment has an OEM agreement with one customer for which sales are recognized FOB destination – when the goods hit the customer’s dock. All sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies.
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 our terms are documented in the most recently published price lists. Pricing is fixed and determinable according to our published equipment and parts price lists.
Our consolidated operating income for the 2022 fiscal year was $333,000 compared to operating income of $523,000 for the 2021 fiscal year.
The Agricultural Products segment represented $5,920,000 of our total consolidated operating expenses, while our Modular Buildings segment represented $1,133,000. Our consolidated operating income from continuing operations for the 2023 fiscal year was $1,531,000 compared to operating income of $605,000 for the 2022 fiscal year.
Operating expenses were $640,000 for the 2022 fiscal year compared to $574,000 for the 2021 fiscal year, an increase of $66,000, or 11.5%. Our selling expenses accounted for approximately $19,000 of the increase primarily from an increase in commission expense and sales salaries. Our administrative expense was up $47,000 primarily from an increase in administrative wages and attendance related bonuses.
Operating expenses for the 2023 fiscal year were $1,133,000 compared to $1,095,000 for the 2022 fiscal year, an increase of $38,000, or 3.5%. This increase was primarily due to increased selling expenses from additional commissions paid on an increase in agricultural building sales.
We used these funds to increase inventory levels for the second straight year to meet increasing demand and to stay ahead of supply chain delays. We used approximately $2,445,000 in fiscal 2022 for purchases of property (including finance lease assets), plant and equipment, primarily facility upgrades and manufacturing equipment to improve efficiency.
We expect to be driving these inventory levels down in fiscal 2024 as many of our vendor lead times are returning to pre pandemic levels. We used approximately $841,000 in fiscal 2023 for purchases of property, plant and equipment, primarily facility upgrades and manufacturing equipment to improve operational efficiency.
We expect to have access to capital as needed throughout fiscal 2023 through the sale of inventory and from the use of our line of credit. On November 30, 2022 we had $1,075,500 available on our line of credit and $2,260,402 of excess collateral towards our borrowing base.
On November 30, 2023 we had $1,086,480 available on our line of credit and $2,337,903 of excess collateral towards our borrowing base. Our working capital remained strong at approximately $5,690,000 in fiscal 2023 with a current ratio of 1.61.
We also have three Economic Injury Disaster Loans provided by the U.S. Small Business Administration with an aggregate principal balance of $491,433 as of November 30, 2022.
The revolving line of credit is being used for working capital purposes. We also have three Economic Injury Disaster Loans provided by the U.S.
Our Modular Buildings segment’s net sales for the 2022 fiscal year were $4,734,000 compared to $5,678,000 for the 2021 fiscal year, a decrease of $944,000, or 16.6%. The decrease in sales was due to a slow start to fiscal 2022 where we saw contract delays on active research project bids we expected to procure.
Our Modular Buildings segment’s net sales for the 2023 fiscal year were $7,814,000 compared to $4,734,000 for the 2022 fiscal year, an increase of $3,080,000, or 65.1%. We saw an increase in agricultural sales in fiscal 2023 from the continued strength of the agricultural market and also landed a large research product that drove up sales.
Because the majority of our corporate general and administrative expenses are borne by our Agricultural Products segment, that segment represented $5,239,000 of our total consolidated operating expenses, while our Modular Buildings segment represented $1,095,000 and our Tools segment represented $640,000.
Our consolidated operating expenses from continuing operations increased by 11.4%, from $6,334,000 in the 2022 fiscal year to $7,053,000 in the 2023 fiscal year. The majority of our corporate general and administrative expenses are borne by our Agricultural Products segment, including costs to be public.
Removed
Our inventory increased significantly in fiscal 2022 as we better positioned ourselves to meet customer demand. We utilized customer deposits and funding from a common stock purchase agreement to meet the increased demands of fiscal 2022.
Added
We expect to have access to capital as needed throughout fiscal 2024 from the collection of receivables, sale of inventory, the expected receipt of approximately $1.2 million of gross proceeds from a filed Employee Retention Credit and the potential sale of our Ohio real estate.
Removed
Our working capital remained strong at approximately $4,866,000 in fiscal 2022 with a current ratio of 1.53. Our banking relationship remains positive and we expect it to only strengthen as our financial results continue to improve.
Added
Due to the timing of filing an ERC claim after the IRS announced a moratorium on processing applications, and uncertainty surrounding the nature and timing of the claim approval and subsequent payment process, recognition of the claim is deferred until payment is received. Accordingly the claim has not been recorded in receivables, assets, or income.
Removed
Our consolidated operating expenses increased by 14.8%, from $6,073,000 in the 2021 fiscal year to $6,974,000 in the 2022 fiscal year.
Added
Our banking relationship remains positive and we expect it to only strengthen as our balance sheet continues to improve through the retirement of debt. We believe that our current cash and financing arrangements will provide sufficient cash to finance operations for the next 12 months.
Removed
We continued to see strong commodity prices in fiscal 2022 which led to increased sales in grinder mixers, manure spreaders and our beet harvesting equipment for the second straight fiscal year. Our procurement team was able to navigate the difficult supply chain environment in fiscal 2022 and our production crew delivered on the increased demand.
Added
The primary driver for the increase in effective tax rate was due to add backs related to differences in restricted stock values at grant and vest date and non-deductible meals expense. Agricultural Products.
Removed
We utilized price increases to stay ahead of these rising costs in fiscal 2022 and maintain margins consistent with fiscal 2021. We also purchased three robotic weld cells and a high-definition plasma cutter in fiscal 2022 that we expect will increase manufacturing efficiencies, increase output and improve the quality of our products.
Added
This, coupled with product mix was the primary driver for the decrease in gross profit percentage. We doubled the number of unit sales on our manure spreaders in fiscal 2023, as we added smaller unit options to our manure spreader line.
Removed
Our selling expense accounted for approximately $70,000 of this increase as we added some key personnel to our sales team including a new director of sales, an inside salesman and an equipment support technician. We expect these roles to allow us to expand our dealer network and provide better customer support moving forward.
Added
A large portion of our sales increase was related to the manure spreader line which has a lower profit margin to stay competitive with other industry leaders. We continued to make steps to drive production efficiency in fiscal 2023, most notably with the creation of new fixturing to weld a higher volume of parts in our robotic weld cells.
Removed
Our general and administrative expenses increased approximately $525,000 from fiscal 2021. The increase was due to the addition of a quality technician, additional recruitment expense from the recruitment of our director of sales, additional computer contract expense as we began the transition to a cloud-based ERP system and salary increases to combat inflation for our employees.
Added
Our selling expense accounted for approximately $200,000 of this increase, which included additional commissions in fiscal 2023, from increased sales and more sales in territories represented by our independent reps and increased advertising spend in fiscal 2023 to generate more product interest about our products and to reach new geographic areas.
Removed
While the increase in revenue largely drove the increase in operating income for fiscal 2022, our efforts to improve the business over the last few years put us in position to take advantage of better economic conditions. We focused heavily on improving our image in the agricultural industry through rebranding and customer satisfaction initiatives.
Added
Our general and administrative expenses increased approximately $461,000 from fiscal 2022. This was due in part to ERP conversion expenses included training, data conversion and post implementation support. The new ERP is expected to improve our financial reporting, material resource planning and overall administrative efficiency.
Removed
We put added emphasis on quality and functionality of our products to meet our rugged customers’ demands. We’ve analyzed and diminished manufacturing inefficiencies that have bottlenecked our operations to allow for continued growth in the future. Modular Buildings.
Added
We also added a Human Resources manager to our team this fiscal year, which added to the increased general and administrative expense. Our costs of being public, most notably, audit fees also increased in fiscal 2023. Our engineering expenses increased approximately $19,000 from fiscal 2022 due to some consulting work to increase robotic weld cell activity.
Removed
Gross profit for the 2022 fiscal year was 10.5% compared to 17.7% during the 2021 fiscal year. The decrease in gross profit was due to rising construction material costs for projects under fixed price contracts.
Added
We continue to strive for improvements that will improve our product margins and improve manufacturability. We took additional steps in fiscal 2023 to increase our operational effectiveness including product quality and efficiency initiatives with upgraded equipment and new internal programs. Modular Buildings.
Removed
In addition, we incurred additional labor expense as we maintained higher staffing levels through the first six months of fiscal 2022 under the expectation that large research contracts would be underway in early fiscal 2022.
Added
Our Modular Building segment's gross profit for the 2023 fiscal year was 25.6% compared to 10.5% during the 2022 fiscal year. Sales volume played a key factor in increasing our gross profit for fiscal 2023. We also increased our billing rates to combat rising labor and overhead costs from fiscal 2022 that led to better margins in fiscal 2023.
Removed
Contract delays led to overstaffing and we were faced with a difficult decision to retain employees in a tough job market knowing demand in the modular building market would increase. Operating expenses for the 2022 fiscal year were $1,095,000 compared to $928,000 for the 2021 fiscal year, an increase of $167,000, or 18.0%.
Added
We believe our brand and sales lead funnel is providing us with increased sales potential in fiscal 2024. Discontinued Operations. On June 7, 2023 we announced we would be discontinuing our Tools segment with the last day of normal operations on July 14, 2023. There were no employees as of November 30, 2023.
Removed
Our selling expense accounted for approximately $64,000 of this increase. With agricultural buildings being our primary source of revenue in fiscal 2022, we saw increased commissions in fiscal 2022 from these sales. We also had increased trade show participation in fiscal 2022.
Added
One employee remained employed by the Tools segment through October 2, 2023 to oversee the liquidation process, mainly the sale of remaining inventory and auctioning off machinery and equipment.
Removed
Our Tools segment’s net sales for the 2022 fiscal year were $2,754,000 compared to $2,461,000 for the 2021 fiscal year, an increase of $293,000, or 11.9%. The increase in sales is due to price increases to partially cover rising material and manufacturing overhead costs coupled with increased demand in fiscal 2022.
Added
Our discontinued operations generated approximately $661,000 from operating activities for the twelve months ended November 30, 2023, which includes the liquidation of inventory and receivables and approximately $76,000 from investing activities from the sale of equipment. The Company real estate is listed for sale at market value in the Canton, Ohio area.
Removed
Gross profit for the 2022 fiscal year was 13.4% compared to 17.2% for the 2021 fiscal year. The decrease in gross profit was due to rising material input costs that outpaced our price increases along with manufacturing inefficiencies resulting from the competitive labor market and related shortages.
Added
We estimate approximately $2,000,000 in net proceeds on the sale of this real estate based on market value of comps in the area. Our Tools segment had sales of $2,031,000 for the twelve months ended November 30, 2023 and $2,753,000 for the twelve months ended November 30, 2022.
Removed
We also used proceeds from an investor under a common stock purchase agreement to help with cash flow needs in fiscal 2022. We expect to use cash in fiscal 2023 to acquire additional equipment to improve our shop output and efficiency.
Added
A large increase in receivables consumed cash in 2023 as we used extended terms to increase our sales in fiscal 2023. We also consumed significant cash increasing our inventory to stay ahead of supply chain delays.
Removed
These additions will be key to improving quality, increasing manufacturing output to fulfill customer demand and ultimately, we expect it to allow us to be more competitive in our industry. We expect our primary capital needs for fiscal 2023 to be for inventory purchases and the retirement of debt.
Added
We expect our primary capital needs for fiscal 2024 to be operating expenses. We also expect to use cash in fiscal 2024 to acquire additional equipment that improves automation and efficiency in our manufacturing process. These additions will help us drive out costs to improve product margins and be more competitive in our industry.
Removed
We received approximately $369,000 from Iowa Economic Development’s Manufacturing 4.0 program in Q3 of fiscal 2022. The funds for this award are provided by the State and Local Fiscal Recovery Fund, part of the American Rescue Plan.
Added
We expect to receive approximately $1,200,000 of net proceeds from the Employee Retention Credit in fiscal 2024 and estimate expected net proceeds of approximately $2,000,000 upon sale of our Ohio real estate, which we expect will be used to retire a significant portion of our debt and fund capex needs as discussed above.
Removed
The total amount of award available to the Company is $500,000 for which the Iowa Economic Development reimburses the Company for 75% of eligible capital expenditures that increase automation or increase operational efficiency.
Added
Due to the timing of filing an ERC claim after the IRS announced a moratorium on processing applications, and uncertainty surrounding the nature and timing of the claim approval and subsequent payment process, recognition of the claim is deferred until payment is received. Accordingly the claim has not been recorded in receivables, assets, or income.
Removed
The Company is required to submit quarterly reports to the Iowa Economic Development through April 30, 2027 under this program and the funds are available for purchases through December 31, 2024.

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