6 - Segment Information

12 Months Ended

Dec. 31, 2023

Notes

6 - Segment Information

6 - Segment Information- The Company operates in the United States in two business segments as determined by its products.  The fastener segment, which comprises H & L Tool and the parent company’s fastener operations, includes rivets, cold-formed fasteners and parts and screw machine products.  The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines.  Information by segment is as follows:

	Fastener	Assembly Equipment	Other	Consolidated
Year Ended December 31, 2023:
Net Sales………………………………………	$      28,161,362	$      3,346,360	$                  0	$        31,507,722
Depreciation……………………………………...	1,145,620	122,928	6,530	1,275,078
Segment operating profit (loss)  ………………	(3,747,744)	549,156	0	(3,198,588)
Selling and administrative expenses…………..	0	0	(2,638,658)	(2,638,658)
Other income……………………………………..	0	0	108,234	108,234
Loss before income taxes……………………				(5,729,012)
Capital expenditures…………………………….	1,041,896	5,235	31,236	1,078,367
Segment assets:
Accounts receivable, net……………………...	3,994,372	281,510	0	4,275,882
Contract assets………………………………...	0	118,301	0	118,301
Inventories, net………………………………...	5,714,826	1,612,827	0	7,327,653
Property, plant and equipment, net………….	9,458,605	1,185,804	1,020,673	11,665,082
Other assets……………………………………	0	0	4,443,987	4,443,987
				27,830,905
Year Ended December 31, 2022:
Net Sales………………………………………	$      30,291,547	$      3,354,486	$                  0	$        33,646,033
Depreciation……………………………………...	1,129,151	133,615	17,104	1,279,870
Segment operating profit………………………	505,751	413,995	0	919,746
Selling and administrative expenses…………..	0	0	(2,096,944)	(2,096,944)
Gain on sale of property			4,738,394	4,738,394
Other income……………………………………..	0	0	91,433	91,433
Income before income taxes……………………				3,652,629
Capital expenditures…………………………….	868,654	3,207	98,082	969,943
Segment assets:
Accounts receivable, net……………………...	4,683,620	291,517	0	4,975,137
Inventories, net………………………………...	7,766,703	1,354,527	0	9,121,230
Property, plant and equipment, net………….	9,562,329	1,303,497	995,967	11,861,793
Other assets……………………………………	0	0	7,667,967	7,667,967
				33,626,127

The Company does not allocate certain selling and administrative expenses for internal reporting, thus, no allocation was made for these expenses for segment disclosure purposes.  Segment assets reported internally are limited to accounts receivable, inventory and long-lived assets.  Certain long-lived assets of one plant location are allocated between the two segments based on estimated plant utilization, as this plant serves both fastener and assembly equipment activities.  Other assets are not allocated to segments internally and to do so would be impracticable.

The following table presents revenue by segment, further disaggregated by end-market:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2023:
Automotive	$   19,297,188	$        131,821	$   19,429,009
Non-automotive	8,864,174	3,214,539	12,078,713
Total net sales	$   28,161,362	$     3,346,360	$   31,507,722
Year Ended December 31, 2022:
Automotive	$  18,454,238	$        209,735	$   18,663,973
Non-automotive	11,837,309	3,144,751	14,982,060
Total net sales	$  30,291,547	$     3,354,486	$   33,646,033

The following table presents revenue by segment, further disaggregated by location:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2023:
United States	$  22,635,244	$       3,154,677	$   25,789,921
Foreign	5,526,118	191,683	5,717,801
Total net sales	$  28,161,362	$     3,346,360	$   31,507,722
Year Ended December 31, 2022:
United States	$  24,955,181	$       3,202,729	$   28,157,910
Foreign	5,336,366	151,757	5,488,123
Total net sales	$  30,291,547	$     3,354,486	$   33,646,033

Sales to one customer in the fastener segment accounted for 16% of consolidated revenues during 2023 and 15% in 2022.  The accounts receivable balance for this customer accounted for 15% and 19% of consolidated accounts receivable as of December 31, 2023 and 2022, respectively.  Sales to a second customer in the fastener segment accounted for 14% of consolidated revenues during 2023 and 2022.  The accounts receivable balance for this customer accounted for 14% and 16% of consolidated accounts receivable as of December 31, 2023 and 2022, respectively.  Sales to a third customer were 11% of consolidated revenue in 2023. The accounts receivable balance for this customer accounted for 20% of consolidated accounts receivable as of December 31, 2023.