ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class |
Trading Symbol(s) |
Name of ea/Exchange on Which Registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Title of Class |
Shares Outstanding on February 4, 2022 | |
Common Stock |
Title |
Form 10-K | |
Definitive proxy statement for Annual Meeting of Shareholders to be held March 4, 2022 |
Part III, Items 10-14 |
Form 10-K |
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Item 1. |
2 | |||||
Item 1A. |
4 | |||||
Item 1B. |
4 | |||||
Item 2. |
4 | |||||
Item 3. |
5 | |||||
Item 4. |
5 | |||||
Item 5. |
6 | |||||
Item 6. |
6 | |||||
Item 7. |
7 | |||||
Item 7A. |
11 | |||||
Item 8. |
12 | |||||
12 | ||||||
13 | ||||||
14 | ||||||
15 | ||||||
16 | ||||||
17 | ||||||
18 | ||||||
Item 9. |
30 | |||||
Item 9A. |
30 | |||||
Item 9B. |
30 | |||||
Item 9C. |
30 | |||||
Item 10. |
31 | |||||
Item 11. |
31 | |||||
Item 12. |
31 | |||||
Item 13. |
31 | |||||
Item 14. |
31 | |||||
Item 15. |
32 | |||||
32 | ||||||
32 | ||||||
Item 16. |
33 | |||||
34 |
Item 1. |
Business |
• | Single-wide widths of 14 and 16 feet ranging from 35 to 72 feet in length; |
• | Double-wide widths of 20, 24, 26, 28 and 32 feet ranging from 32 to 72 feet in length; |
• | Triple-wide widths of 42 feet ranging from 60 to 72 feet in length; and |
• | Quad-unit with 2 sections 28 feet wide from 40 to 48 feet long and 2 sections 28 feet wide by 52 feet long. |
Item 1A. |
Risk Factors |
Item 1B. |
Unresolved Staff Comments |
Item 2. |
Properties |
Location |
Approximate Size | |
3741 SW 7th Street Ocala, Florida |
72,000 sq. ft. |
Item 3. |
Legal Proceedings |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Equity Compensation Plan Information | ||||||||||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights |
Weighted-average exercise price of outstanding options, warrants and rights |
Number of securities remaining available for issuance under equity compensation plans (excluding securities reflected in column (a)) |
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(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders |
47,300 | $ | 24.41 | N/A | * | |||||||
Equity compensation plans not approved by security holders |
N/A | N/A | 252,700 | * | ||||||||
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Total |
47,300 | $ | 24.41 | 252,700 |
* | The Nobility Homes, Inc. 2011 Stock Incentive Plan was amended by the Board of Directors to extend the termination date from June 2021 until June 1, 2026. |
Item 6. |
Reserved |
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
2021 | 2020 | |||||||
New homes sold through Company owned sales centers |
394 | 343 | ||||||
Pre-owned homes sold through Company owned sales centers |
15 | 12 | ||||||
Homes sold to independent dealers |
139 | 225 | ||||||
Total new factory built homes produced |
557 | 547 | ||||||
Average new manufactured home price - retail |
$ | 93,824 | $ | 91,161 | ||||
Average new manufactured home price - wholesale |
$ | 50,183 | $ | 43,758 | ||||
As a percent of net sales: |
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Gross profit from the Company owned retail sales centers |
17 | % | 19 | % | ||||
Gross profit from the manufacturing facilities - including intercompany sales |
15 | % | 22 | % |
• | Its receipt of a down payment, |
• | Construction of the home is complete, |
• | Home has been delivered and set up at the retail home buyer’s site and title has been transferred to the retail home buyer, |
• | Remaining funds have been released by the finance company (financed sales transaction), remaining funds have been committed by the finance company by an agreement with respect to financing obtained by the customer, usually in the form of a written approval for permanent home financing received from a lending institution, (financed construction sales transaction) or cash has been received from the home buyer (cash sales transaction), and |
• | Completion of any other significant obligations. |
Item 7A. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 8. |
Financial Statements and Supplementary Data |
13 | ||||
14 | ||||
15 | ||||
16 | ||||
17 | ||||
18 |
November 6, 2021 | October 31,2020 | |||||||
Assets |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Certificates of deposit |
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Short-term investments |
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Accounts receivable—trade |
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Note receivable |
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Mortgage notes receivable |
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Income taxes receivable |
— | |||||||
Inventories |
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Pre-owned homes, net |
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Prepaid expenses and other current assets |
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Total current assets |
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Property, plant and equipment, net |
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Pre-owned homes, net |
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Note receivable, less current portion |
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Mortgage notes receivable, less current portion |
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Mobile home park note receivable |
— | |||||||
Other investments |
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Deferred income taxes |
— | |||||||
Operating lease right of use asset |
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Cash surrender value of life insurance |
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Other assets |
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Total assets |
$ | $ | ||||||
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued compensation |
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Accrued expenses and other current liabilities |
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Income taxes payable |
— | |||||||
Operating lease obligation |
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Customer deposits |
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Total current liabilities |
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Deferred income taxes |
— | |||||||
Operating lease obligation, less current portion |
— | |||||||
Total liabilities |
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Commitments and contingent liabilities |
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Stockholders’ equity: |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid in capital |
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Retained earnings |
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Less treasury stock at cost, |
( |
) | ( |
) | ||||
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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Year Ended |
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November 6, 2021 |
October 31, 2020 |
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Net sales |
$ | $ | ||||||
Cost of sales |
( |
) | ( |
) | ||||
Gross profit |
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Selling, general and administrative expenses |
( |
) | ( |
) | ||||
Operating income |
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Other income (loss): |
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Interest income |
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Undistributed earnings in joint venture—Majestic 21 |
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Proceeds received under escrow arrangement |
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Increase (decrease) in fair value of equity investment |
( |
) | ||||||
Gain on sale of assets |
— | |||||||
Miscellaneous |
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Total other income |
||||||||
Income before provision for income taxes |
||||||||
Income tax expense |
( |
) | ( |
) | ||||
Net income |
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Weighted average number of shares outstanding: |
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Basic |
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Diluted |
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Net income per share: |
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Basic |
$ | $ | ||||||
Diluted |
$ | $ |
Common Stock Shares |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income |
Treasury Stock |
Total | ||||||||||||||||||||||
Balance at October 31, 2020 |
$ | $ | $ | $ | — | $ | ( |
) | $ | |||||||||||||||||||
Cash dividend |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Purchase of treasury stock |
( |
) | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
Exercise of employee stock options |
— | — | — | |||||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance at November 6, 2021 |
$ | $ | $ | $ | — | $ | ( |
) | $ | |||||||||||||||||||
Balance at November 2, 2019 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||
Adoption of ASU 2016-01 |
— | — | — | ( |
) | — | — | |||||||||||||||||||||
Adoption of ASU 2016-02 |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Balance at November 2, 2019 as adjusted |
— | ( |
) | |||||||||||||||||||||||||
Cash dividend |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Purchase of treasury stock |
( |
) | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||
Stock-based compensation |
— | — | — | |||||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance at October 31, 202 0 |
$ | $ | $ | $ | — | $ | ( |
) | $ | |||||||||||||||||||
Year Ended | ||||||||
November 6, 2021 |
October 31, 2020 |
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Cash flows from operating activities: |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
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Deferred income taxes |
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Undistributed earnings in joint venture—Majestic 21 |
( |
) | ( |
) | ||||
Gain on disposal of property, plant and equipment |
— | ( |
) | |||||
(Increase) decrease in fair value of equity investments |
( |
) | ||||||
Stock-based compensation |
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Amortization of operating lease right of use assets |
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Decrease (increase) in: |
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Accounts receivable—trade |
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Inventories |
( |
) | ||||||
Pre-owned homes |
( |
) | ||||||
Prepaid expenses and other current assets |
( |
) | ||||||
Interest receivable |
( |
) | ( |
) | ||||
Income taxes receivable |
— | ( |
) | |||||
(Decrease) increase in: |
||||||||
Accounts payable |
( |
) | ||||||
Accrued compensation |
( |
) | ( |
) | ||||
Accrued expenses and other current liabilities |
( |
) | ||||||
Income taxes payable |
( |
) | ||||||
Customer deposits |
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Net cash provided by operating activities |
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Cash flows from investing activities: |
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Purchase of property, plant and equipment |
( |
) | ( |
) | ||||
Purchase of certificates of deposit |
— | ( |
) | |||||
Proceeds from certificates of deposit |
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Proceeds from disposal of property, plant and equipment |
— | |||||||
Collections on interest receivable |
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Collections on mortgage notes receivable |
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Collections on equipment and other notes receivable |
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Issuance of equipment note receivable |
( |
) | ||||||
Issuance of mobile home park not receivable |
( |
) | — | |||||
Increase in cash surrender value of life insurance |
( |
) | ( |
) | ||||
Net cash provided by investing activities |
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Cash flows from financing activities: |
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Payment of cash dividend |
( |
) | ( |
) | ||||
Proceeds from exercise of employee stock options |
— | |||||||
Proceeds from paycheck protection program |
— |
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Return of proceeds from paycheck protection program |
— |
( |
) | |||||
Purchase of treasury stock |
( |
) | ( |
) | ||||
Reduction of operating lease obligation |
( |
) | ( |
) | ||||
Net cash used in financing activities |
( |
) | ( |
) | ||||
Increase cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
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Cash and cash equivalents at end of year |
$ | $ | ||||||
Supplemental disclosure of cash flow information: |
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Income taxes paid |
$ | $ | ||||||
1. | Identify the contract(s) with a customer; |
2. | Identify each performance obligation in the contract; |
3. | Determine the transaction price; |
4. | Allocate the transaction price to each performance obligation; and |
5. | Recognize revenue when or as each performance obligation is satisfied. |
• | Its receipt of a down payment, |
• | Construction of the home is complete, |
• | Home has been delivered and set up at the retail home buyer’s site, and title has been transferred to the retail home buyer, |
• | Remaining funds have been released by the finance company (financed sales transaction), remaining funds have been committed by the finance company by an agreement with respect to financing obtained by the customer, usually in the form of a written approval for permanent home financing received from a lending institution, (financed construction sales transaction) or cash has been received from the home buyer (cash sales transaction), and |
• | Completion of any other significant obligations. |
2021 | 2020 | |||||||
Manufactured housing |
$ | $ | ||||||
Pre-owned homes |
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Insurance agent commissions |
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Total net sales |
$ | $ | ||||||
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|
2021 | 2020 | |||||||
Beginning accrued warranty expense |
$ | $ | ||||||
Less: reduction for payments |
( |
) | ( |
) | ||||
Plus: additions to accrual |
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Ending accrued warranty expense |
$ | $ | ||||||
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|
November 6, 2021 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
|||||||||||||
Equity securities in a public company |
$ | $ | $ | $ | ||||||||||||
October 31, 2020 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
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Equity securities in a public company |
$ | $ | $ | $ | ||||||||||||
• | Level 1—Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2—Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. |
• | Level 3—Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date. |
November 6, 2021 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Equity securities in a public company |
$ | $ | $ | |||||||||
October 31, 2020 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Equity securities in a public company |
$ | $ | $ | |||||||||
November 6, 2021 |
October 31, 2020 |
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Raw materials |
$ | $ | ||||||
Work-in-process |
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Inventory consigned to affiliated entities |
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Finished homes |
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Model home furniture |
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Inventories |
$ | $ | ||||||
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Pre-owned homes |
$ | $ | ||||||
Less homes expected to sell in 12 months |
( |
) | ( |
) | ||||
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Pre-owned homes, long-term |
$ | $ | ||||||
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Range of Lives in Years | November 6, 2021 | October 31, 2020 | ||||||||
Land |
$ | $ | ||||||||
Land improvements |
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Buildings and improvements |
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Machinery and equipment |
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Furniture and fixtures |
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Construction in progress |
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Less accumulated depreciation |
( |
) | ( |
) | ||||||
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|
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$ | $ | |||||||||
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|
November 6, 2021 | October 31, 2020 | |||||||
Accrued warranty expense |
$ | $ | ||||||
Accrued property and sales taxes |
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Other accrued expenses |
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Total accrued expenses and other current liabilities |
$ | $ | ||||||
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|
November 6, 2021 | October 31, 2020 | |||||||
Current tax expense: |
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Federal |
$ | $ | ||||||
State |
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Deferred tax (benefit) |
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Provision for income taxes |
$ | $ | ||||||
November 6, 2021 | October 31, 2020 | |||||||
Provision—federal statutory tax rate |
$ | $ | ||||||
Increase (decrease) resulting from: |
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State taxes, net of federal tax benefit |
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Permanent differences: |
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Stock option expirations |
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Decrease in FL corporate tax rate |
( |
) | ( |
) | ||||
Other comprehensive income |
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Other |
( |
) | ( |
) | ||||
Provision for income taxes |
$ | $ | ||||||
November 6, 2021 | October 31, 2020 | |||||||
Deferred tax assets: |
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Allowance for doubtful accounts |
$ | $ | ||||||
Inventories |
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Prepaid Expenses |
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Accrued expenses |
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Other assets |
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Lease right of use liability |
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Stock-based compensation |
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Total deferred tax assets |
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Deferred tax liabilities: |
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Depreciation |
( |
) | ( |
) | ||||
Carrying value of investments |
( |
) | ( |
) | ||||
Amortization |
( |
) | ( |
) | ||||
Prepaid expenses |
( |
) | ( |
) | ||||
Lease right of use asset |
( |
) | ( |
) | ||||
Net deferred tax assets (liabilities) |
$ | ( |
) | $ | ||||
November 6, 2021 | October 31, 2020 | |||||||
Current assets (liabilities): |
||||||||
Deferred tax assets |
$ | $ | ||||||
Deferred tax liabilities |
||||||||
Net current deferred tax assets |
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Non-current assets (liabilities): |
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Deferred tax assets |
||||||||
Deferred tax liabilities |
( |
) | ( |
) | ||||
Net non-current deferred tax assets (liabilities) |
( |
) | ||||||
Net deferred tax assets (liabilities) |
$ | ( |
) | $ | ||||
Number of Shares |
Stock Option Price Range |
Weighted Average Exercise Price |
Aggregate Intrinsic Value |
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Outstanding at November 2, 2019 |
$ | $ | ||||||||||||||
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Granted |
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Exercised |
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Canceled |
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Outstanding at October 3 1, 2020 |
$ | |||||||||||||||
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Granted |
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Exercised |
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Canceled |
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Outstanding at November 6, 2021 |
$ | $ | $ | |||||||||||||
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Options Outstanding | Options Exercisable | |||||||||||||||||||||
Exercise Price |
Shares Outstanding |
Weighted Average Remaining Contractual Life (years) |
Weighted Average Exercise Price |
Number Exercisable |
Weighted Average Exercise Price |
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$ | $ | $ | ||||||||||||||||||||
$ | ||||||||||||||||||||||
$ | ||||||||||||||||||||||
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$ | $ | |||||||||||||||||||||
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Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. |
Controls and Procedures |
Item 9B. |
Other Information |
Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. |
Item 10. |
Directors, Executive Officers and Corporate Governance |
Terry E. Trexler (82) | Chairman of the Board and President of Nobility since 1967; Mr. Trexler is also President of TLT, Inc. | |
Thomas W. Trexler (58) | Executive Vice President and Chief Financial Officer of Nobility since December 1994; President of Prestige Home Centers, Inc. since June 1995; Director of Prestige since 1993 and Vice President from 1991 to June 1995; President of Mountain Financial, Inc. since August 1992; Vice President of TLT, Inc. since September 1991. | |
Jean Etheredge (76) | Secretary since 1967. | |
Lynn J. Cramer, Jr. (76) | Treasurer since 1980. |
Item 11. |
Executive Compensation |
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
Item 14. |
Principal Accounting Fees and Services |
Item 15. |
Exhibits and Financial Statement Schedules |
(a) | Consolidated Financial Statements and Schedules |
(b) | Exhibits: |
• | should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; |
• | have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; |
• | may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and |
• | were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. |
3.(a) | Nobility’s Articles of Incorporation, as amended (filed as an exhibit to Nobility’s Form 10-K for the fiscal year ended November 1, 1997 and incorporated herein by reference).(P) |
(b) | Bylaws, as amended March 28, 1994 (filed as an exhibit to Nobility’s Form 10-KSB for the fiscal year ended October 29, 1994 and incorporated herein by reference.) (P) |
4.1 |
10.(a) | Joint Venture Agreement with 21st Century Mortgage Corporation (filed as an exhibit to Nobility’s For 10-K for the fiscal year ended November 1, 1997 and incorporated herein by reference).(P) |
(b) |
(c) |
(d) |
(e) |
(f) |
21.1 |
23.1 |
31.(a) |
(b) |
32.(a) |
(b) |
101. | Interactive data filing formatted in XBRL. |
Item 16. |
Form 10-K Summary |
DATE: February 4, 2022 | By: /s/ Terry E. Trexler | |||||
Terry E. Trexler, Chairman, | ||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||
DATE: February 4, 2022 | By: /s/ Thomas W. Trexler | |||||
Thomas W. Trexler, Executive Vice President | ||||||
and Chief Financial Officer (Principal Financial Officer) | ||||||
DATE: February 4, 2022 | By: /s/ Lynn J. Cramer, Jr. | |||||
Lynn J. Cramer, Jr., Treasurer | ||||||
and Principal Accounting Officer |
DATE: February 4, 2022 | By: /s/ Terry E. Trexler | |||||
Terry E. Trexler, Director | ||||||
DATE: February 4, 2022 | By: /s/ Thomas W. Trexler | |||||
Thomas W. Trexler, Director | ||||||
DATE: February 4, 2022 | By: /s/ Robert P. Saltsman | |||||
Robert P. Saltsman, Director | ||||||
DATE: February 4, 2022 | By: /s/ Arthur L. Havener | |||||
Arthur L. Havener, Director |
Exhibit 4.1
DESCRIPTION OF THE REGISTRANTS SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
As of November 6 , 2021, Nobility Homes, Inc. (we or our) had one class of securities, common stock, par value $0.10 per share (Common Stock), registered under Section 12 of the Securities Exchange Act of 1934, as amended. The following description of our Common Stock is a summary and is subject to, and is qualified in its entirety by reference to, the provisions of our Articles of Incorporation and our Bylaws, copies of which are incorporated by reference as Exhibits 3.(a) and 3.(b), respectively, to our Annual Report on Form 10-K for the year ended November 6, 2021 of which this Exhibit 4.1 is a part.
Our authorized capital stock consists of 10,000,000 shares of Common Stock, $.10 par value per share, and 500,000 shares of preferred stock, $0.10 par value per share. As of November 6, 2021, 3,532,100 shares of Common Stock were issued and outstanding and no shares of preferred stock were issued and outstanding.
Our Common Stock is traded on the OTCQX market under the symbol NOBH. Holders of our Common Stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. Holders of Common Stock are entitled to receive ratably such dividends, if any, as may be declared by the board of directors out of funds legally available therefore, subject to a preferential dividend right of outstanding preferred stock. Upon the liquidation, dissolution or our winding up, the holders of Common Stock are entitled to receive ratably our net assets available after the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. The rights, preferences and privileges of holders of Common Stock are subject to, and may be adversely affected by the rights of the holders any series of preferred stock that we may designate and issue in the future.
Exhibit 10 (f)
FIRST AMENDMENT
TO
NOBILITY HOMES, INC.
2011 STOCK INCENTIVE PLAN
This First Amendment (the Amendment) to that certain Nobility Homes, Inc. 2011 Stock Incentive Plan, as it may be amended, restated, or otherwise modified from time to time (the Plan), is hereby made effective as of June 1, 2021. Any capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Plan.
RECITALS
WHEREAS, the Board of Directors (the Board) of Nobility Homes, Inc., a Florida corporation (the Company) adopted the Plan and the Companys stockholders approved the Plan on July 19, 2011 in accordance with the requirements of applicable law;
WHEREAS, by written consent, the Board approved this Amendment to the Plan to extend the term of the Plan until June 1, 2026; and
WHEREAS, the Company is authorized to amend the Plan pursuant to Section 8.1 thereof.
NOW, THEREFORE, the Plan is hereby amended as follows:
1. Section 8.3 of the Plan is hereby amended and restated in its entirety as follows:
Termination. The Plan shall terminate at the close of business on June 1, 2026, provided, however, the Board or Committee shall have the right and the power to terminate the Plan at any time prior thereto. No Award shall be granted under the Plan after such termination, but such termination shall not have any other effect, and any Award outstanding at the time of such termination shall continue in effect in accordance with its terms.
2. All other provisions of the Plan shall remain unchanged as a result of this Amendment. The Plan, as amended and modified by the provisions of this Amendment, shall constitute and shall be construed as a single instrument. The provisions of the Plan, as amended and modified by the provisions of this Amendment, are incorporated herein by reference and are ratified and affirmed.
[Signature Page Follows]
IN WITNESS WHEREOF, the undersigned has executed this Amendment by and on behalf of the Company effective as of the date first set forth above.
NOBILITY HOMES, INC. | ||
By: | /s/ Terry E. Trexler | |
Name: | Terry E. Trexler | |
Title: | President and CEO |
[Signature Page Amendment to Nobility Homes, Inc. 2011 Equity Incentive Plan]
Exhibit 21.1
Subsidiaries of Registrant
Prestige Home Centers | Florida | |
Mountain Financial, Inc. (a subsidiary of Prestige Home Centers, Inc.) | Florida | |
Majestic Homes, Inc. (a subsidiary of Prestige Home Centers, Inc.) | Florida |
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
Nobility Homes, Inc.
Ocala, Florida
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-102919 and No. 333-193608) of Nobility Homes, Inc., of our report dated February 4, 2022, relating to the consolidated financial statements of Nobility Homes, Inc. at and for the years ended November 6, 2021 and October 31, 2020, which appear in this Form 10-K.
/s/ Daszkal Bolton
Jupiter, Florida
February 4, 2022
Exhibit 31(a)
Certifications of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)
or 15d-14(a) under the Securities Exchange Act of 1934
I, Terry E. Trexler, certify that:
1. | I have reviewed this Annual Report on Form 10-K of Nobility Homes, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
DATE: February 4, 2022 | By: /s/ Terry E. Trexler | |||||
Terry E. Trexler, Chairman, | ||||||
President and Chief Executive Officer | ||||||
(Principal Executive Officer) |
Exhibit 31(b)
Certifications of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)
or 15d-14(a) under the Securities Exchange Act of 1934
I, Thomas W. Trexler, certify that:
1. | I have reviewed this Annual Report on Form 10-K of Nobility Homes, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
DATE: February 4, 2022 | By: /s/ Thomas W. Trexler | |||||
Thomas W. Trexler, Executive Vice President | ||||||
and Chief Financial Officer | ||||||
(Principal Financial Officer) |
Exhibit 32(a)
Written Statement of the Chief Executive Officer
Pursuant to 18 U.S.C. §1350
Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chairman and Chief Executive Officer of Nobility Homes, Inc. (the Company), hereby certify that:
1. | The Annual Report on Form 10-K of the Company for the year ended November 6, 2021 (the Report) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
DATE: February 4, 2022 | By: /s/ Terry E. Trexler | |||||
Terry E. Trexler, Chairman, | ||||||
President and Chief Executive Officer |
Exhibit 32(b)
Written Statement of the Chief Financial Officer
Pursuant to 18 U.S.C. §1350
Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Executive Vice President and Chief Financial Officer of Nobility Homes, Inc. (the Company), hereby certify that:
1. | The Annual Report on Form 10-K of the Company for the year ended November 6, 2021 (the Report) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
DATE: February 4, 2022 | By: /s/ Thomas W. Trexler | |||||
Thomas W. Trexler, Executive Vice President | ||||||
and Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Nov. 06, 2021 |
Oct. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,364,907 | 5,364,907 |
Common Stock, shares outstanding | 3,532,100 | 3,631,196 |
Treasury stock, shares | 1,832,807 | 1,733,711 |
Consolidated Statements of Income - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Income Statement [Abstract] | ||
Net sales | $ 45,062,558 | $ 41,612,307 |
Cost of sales | (33,630,362) | (29,481,820) |
Gross profit | 11,432,196 | 12,130,487 |
Selling, general and administrative expenses | (5,286,172) | (4,984,318) |
Operating income | 6,146,024 | 7,146,169 |
Other income (loss): | ||
Interest income | 180,635 | 286,897 |
Undistributed earnings in joint venture—Majestic 21 | 59,072 | 80,091 |
Proceeds received under escrow arrangement | 246,216 | 421,099 |
Increase (decrease) in fair value of equity investment | 262,968 | (155,406) |
Gain on sale of assets | 32,041 | |
Miscellaneous | 223,818 | 58,194 |
Total other income | 972,709 | 722,916 |
Income before provision for income taxes | 7,118,733 | 7,869,085 |
Income tax expense | (1,719,925) | (1,885,387) |
Net income | $ 5,398,808 | $ 5,983,698 |
Weighted average number of shares outstanding: | ||
Basic | 3,597,756 | 3,638,592 |
Diluted | 3,607,448 | 3,639,950 |
Net income per share: | ||
Basic | $ 1.50 | $ 1.64 |
Diluted | $ 1.50 | $ 1.64 |
Consolidated Statements of Changes in Stockholders' Equity - USD ($) |
Total |
Previously reported [Member] |
Adjustments for New Accounting Pronouncement [Member] |
Cumulative Effect, Period of Adoption, Adjustment [Member] |
Common Stock [Member] |
Common Stock [Member]
Previously reported [Member]
|
Common Stock [Member]
Adjustments for New Accounting Pronouncement [Member]
|
Additional Paid-in Capital [Member] |
Additional Paid-in Capital [Member]
Previously reported [Member]
|
Additional Paid-in Capital [Member]
Adjustments for New Accounting Pronouncement [Member]
|
Retained Earnings [Member] |
Retained Earnings [Member]
Previously reported [Member]
|
Retained Earnings [Member]
Adjustments for New Accounting Pronouncement [Member]
|
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
|
Accumulated Other Comprehensive Income [Member]
Previously reported [Member]
|
Accumulated Other Comprehensive Income [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
|
Treasury Stock [Member] |
Treasury Stock [Member]
Previously reported [Member]
|
Treasury Stock [Member]
Adjustments for New Accounting Pronouncement [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Nov. 02, 2019 | $ 49,466,315 | $ 49,401,724 | $ 536,491 | $ 536,491 | $ 10,687,662 | $ 10,687,662 | $ 55,298,750 | $ 55,623,323 | $ 389,164 | $ (17,445,752) | $ (17,445,752) | ||||||||
Balance, shares at Nov. 02, 2019 | 3,664,070 | 3,664,070 | |||||||||||||||||
Adoption of ASU 2016 (Adoption of ASU 2016-01 [Member]) at Oct. 31, 2020 | $ 389,164 | $ (389,164) | |||||||||||||||||
Adoption of ASU 2016 (Adoption of ASU 2016-02 [Member]) at Oct. 31, 2020 | $ (64,591) | $ (64,591) | |||||||||||||||||
Cash dividend | $ (3,630,970) | $ (3,630,970) | |||||||||||||||||
Purchase of treasury stock | $ (822,450) | $ (822,450) | |||||||||||||||||
Purchase of treasury stock, shares | (33,100) | (33,100) | |||||||||||||||||
Stock-based compensation | $ 9,274 | $ 6,892 | 2,382 | ||||||||||||||||
Stock-based compensation, shares | 226 | ||||||||||||||||||
Exercise of employee stock options, shares | 0 | ||||||||||||||||||
Net income | $ 5,983,698 | 5,983,698 | |||||||||||||||||
Balance at Oct. 31, 2020 | 50,941,276 | $ 536,491 | 10,694,554 | 57,976,051 | (18,265,820) | ||||||||||||||
Balance, shares at Oct. 31, 2020 | 3,631,196 | ||||||||||||||||||
Cash dividend | (3,632,100) | (3,632,100) | |||||||||||||||||
Purchase of treasury stock | $ (3,478,553) | (3,478,553) | |||||||||||||||||
Purchase of treasury stock, shares | (100,346) | (100,346) | |||||||||||||||||
Stock-based compensation | $ 69,749 | 69,749 | |||||||||||||||||
Exercise of employee stock options | $ 15,125 | 1,950 | 13,175 | ||||||||||||||||
Exercise of employee stock options, shares | 1,250 | 1,250 | |||||||||||||||||
Net income | $ 5,398,808 | 5,398,808 | |||||||||||||||||
Balance at Nov. 06, 2021 | $ 49,314,305 | $ 536,491 | $ 10,766,253 | $ 59,742,759 | $ (21,731,198) | ||||||||||||||
Balance, shares at Nov. 06, 2021 | 3,532,100 |
Reporting Entity and Significant Accounting Policies |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting Entity and Significant Accounting Policies | NOTE 1 Reporting Entity and Significant Accounting Policies Description of Business and Principles of Consolidation – All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Use of Estimates – pre-owned homes, the allowance for doubtful accounts, the carrying value of long-lived assets, the provision for income taxes and related deferred tax accounts, certain accrued expenses and contingencies, warranty reserve and stock-based compensation. Fiscal Year – fifty-two week period. Revenue Recognition – The Company recognizes revenue following the comprehensive framework of Financial Accounting Standards Board ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09), which established a methodology for determining how much revenue to recognize and when it should be recognized through application of the following five-step approach:
The Company recognizes revenue from its retail sales of new manufactured homes upon the occurrence of the following:
The Company recognizes revenue from the sale of the repurchased homes upon transfer of title to the new purchaser. The Company recognizes revenues from its independent dealers upon receiving wholesale floor plan financing or establishing retail credit approval for terms, shipping of the home, and transferring title and risk of loss to the independent dealer. For wholesale shipments to independent dealers, the Company has no obligation to setup the home or to complete any other significant obligations. The Company recognizes revenues from its wholly-owned subsidiary, Mountain Financial, Inc., as follows: commission income (and fees in lieu of commissions) is recorded as of the effective date of insurance coverage or the billing date, whichever is later. Commissions on premiums billed and collected directly by insurance companies are recorded as revenue when received which, in many cases, is the Company’s first notification of amounts earned due to the lack of policy and renewal information. Contingent commissions are recorded as revenue when received. Contingent commissions are commissions paid by insurance underwriters and are based on the estimated profit and/or overall volume of business placed with the underwriter. The data necessary for the calculation of contingent commissions cannot be reasonably obtained prior to the receipt of the commission which, in many cases, is the Company’s first notification of amounts earned. The Company provides appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience, and other information, which is periodically evaluated and adjusted as deemed necessary. In the opinion of management, no reserve was deemed necessary for policy cancellations at November 6, 2021 and October 31, 2020. Sales of homes to affiliated entities that are subject to contingent payment terms are considered inventory consignment arrangements. Revenue from such arrangements is recognized when the homes are sold to the end users and payment is collected by the affiliated entity. See Note 4 “Related Party Transactions”. Revenues by Products and Services pre-owned homes, and insurance agent commissions for the years ended November 6, 2021 and October 31, 2020 are as follows:
Cash and Cash Equivalents – Certificates of Deposit Accounts Receivable – Accounts receivable fluctuate due to the number of homes sold to independent dealers. The Company recognizes revenues from its independent dealers upon receiving wholesale floor plan financing or establishing retail credit approval for terms, shipping of the home, and transferring title and risk of loss to the independent dealer. Investments – “available-for-sale” available-for-sale 2016-01, unrealized gains and losses on these available-for-sale Inventories – Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21st Mortgage Corporation or through mortgage foreclosure. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the foreclosure/repossessions by 21st Mortgage Corporation. The Company records this inventory at cost determined on the specific identification method. All of the refurbishment costs are paid by 21st Mortgage Corporation. This arrangement assists 21st Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21st Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission, from the sales proceeds. Any additional proceeds are paid to 21st Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21st Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for this inventory. Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s consolidated balance sheets. Consigned inventory was $794,766 and $1,277,681 as of November 6, 2021 and October 31, 2020, respectively. Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value, which is generally lower than market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in Inventory amount is reduced where necessary on a unit specific basis by a valuation reserve, which management believes results in inventory being valued at market. Other inventory costs are determined on a first-in, first-out basis. See Note 6 “Inventories”. Property, Plant and Equipment – Investment in Majestic 21 – st Mortgage Corporation (“21st Mortgage”). We have been allocated our share of net income and distributions on a 50/50 basis since Majestic 21’s formation. While Majestic 21 has been deemed to be a variable interest entity, the Company only holds a 50% interest in this entity and all allocations of profit and loss are on a 50/50 basis. Since all allocations are to be made on a 50/50 basis and joint decisions with the joint venture partner are made which most significantly impact Majestic 21 economic performance therefore, the Company is not required to consolidate Majestic 21 with the accounts of Nobility Homes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) No. 810, “Consolidations” (ASC 810). Management believes that the Company’s maximum exposure to loss as a result of its involvement with Majestic 21 is its investment in the joint venture. Based on management’s evaluation, there was no impairment of this investment at November 6, 2021 or October 31, 2020. The Company entered into an arrangement in 2002 with 21 st Mortgage to repurchase certain pre-owned homes. Under this arrangement or any other arrangement, the Company is not obligated to repurchase any foreclosed/repossessed units of Majestic 21 as it does not have a repurchase agreement or any other guarantees with Majestic 21. However, the Company buys from 21st Mortgage foreclosed/repossessed units from the Majestic 21 portfolio and acts as a remarketing agent. It resells those units through the Company’s network of retail centers which management believes benefits the historical loss experience of the joint venture. The only impact on the Company’s operations from this arrangement are commissions earned on the resale of these units and interest earned for the Company’s carrying costs of the units while in inventory. See Note 14 “Commitments and Contingent Liabilities”. Impairment of Long-Lived Assets – Customer Deposits – Company Owned Life Insurance Warranty Costs –
The Company’s limited warranty covers substantial defects in material or workmanship in specified components of the home including structural elements, plumbing systems, electrical systems, and heating and cooling systems which are supplied by the Company that may occur under normal use and service during a period of twelve (12) months from the date of delivery to the original homeowner, and applies to the original homeowner or any subsequent homeowner to whom this product is transferred during the duration of this twelve (12) month period. The Company tracks the warranty claims per home. Based on the history of the warranty claims, the Company has determined that a majority of warranty claims usually occur within the first three months after the home is sold. The Company determines its warranty accrual using the last three months of home sales. Accrued warranty costs are included in accrued expenses in the accompanying consolidated balance sheets. Accrued Home Setup Costs hook-ups, furniture, insurance, impact/permit fees, land/home fees, extended service plan, freight, skirting, steps, well, septic tanks and other setup costs and are included in accrued expenses in the accompanying consolidated balance sheets. Stock-Based Compensation – Rebate Program – Advertising – Income Taxes – Net Income per Share – Shipping and Handling Costs – Comprehensive Income – available-for-sale Segments – Major Customers – customers that accounted for more than 10% of our total net sales in fiscal year 2021 or 2020. Concentration of Credit Risk – Concentration of Retail Financing Sources – Recently Issued or Adopted Accounting Pronouncements – No. 2016-01, “Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. The amendments require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). The amendments also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The Company adopted ASU 2016-01 resulting in recognition changes in the fair value of equity investment in earnings. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | NOTE 2 Investments The following is a summary of short-term investments (available for sale):
The fair values were estimated based on unadjusted quoted prices at each respective period end.
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Fair Values of Financial Investments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Investments | NOTE 3 Fair Values of Financial Investments The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments. The Company accounts for the fair value of financial investments in accordance with FASB ASC No. 820, “Fair Value Measurements” (ASC 820). ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows:
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Related Party Transactions |
12 Months Ended |
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Nov. 06, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 4 Related Party Transactions Affiliated Entities TLT, Inc. – Repurchase of Common Stock |
Other Investments |
12 Months Ended |
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Nov. 06, 2021 | |
Text Block [Abstract] | |
Other Investments | NOTE 5 Other Investments Investment in Joint Venture – Majestic 21 – While Majestic 21 has been deemed to be a variable interest entity, the Company only holds a 50% interest in this entity and all allocations of profit and loss are on a 50/50 basis . Since all allocations are to be made on a 50/50 basis and the Company’s maximum exposure is limited to its investment in Majestic 21, management has concluded that the Company would not absorb a majority of Majestic 21’s expected losses nor receive a majority of Majestic 21’s expected residual returns; therefore, the Company is not required to consolidate Majestic 21 with the accounts of Nobility Homes in accordance with ASC 810. See Note 14 “Commitments and Contingent Liabilities”. We received no distributions from the joint venture in fiscal year 2021 or 2020. With regard to our investment in Majestic 21, there are no differences between our investment balance and the amount of underlying equity in net assets owned by Majestic 21.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | NOTE 6 Inventories A breakdown of the elements of inventory at November 6, 2021 and October 31, 2020 is as follows:
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Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | NOTE 7 Property, Plant and Equipment Property, plant and equipment, along with their estimated useful lives and related accumulated depreciation are summarized as follows:
Depreciation expense during the years ended November 6, 2021 and October 31, 2020 totaled $186,320 and $180,047, respectively.
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Accrued Expenses and Other Current Liabilities |
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Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | NOTE 8 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are comprised of the following:
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Proceeds Received Under Escrow Arrangement |
12 Months Ended |
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Nov. 06, 2021 | |
Text Block [Abstract] | |
Proceeds Received Under Escrow Arrangement | NOTE 9 Proceeds Received Under Escrow Arrangement The Company received $246,216 in fiscal year 2021 and $421,099 in fiscal year 2020 under an escrow arrangement related to a Finance Revenue Sharing Agreement between 21
st Mortgage Corporation and the Company. The distributions from the escrow account, related to certain loans financed by 21st Mortgage Corporation, are recorded in income by the Company when received, which has been the Company’s past practice. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | NOTE 10 Income Taxes The Company computes income tax expense using the liability method. Under this method, deferred income taxes are provided, to the extent considered realizable by management, for basis differences of assets and liabilities for financial reporting and income tax purposes. The Company follows guidance issued by the FASB with respect to accounting for uncertainty in income taxes. A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of the state of Florida. The Company’s income tax returns for the past three years are subject to examination by tax authorities, and may change upon examination. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company did not reflect any amounts for interest and penalties in its 2021 or 2020 statements of operations, nor are any amounts accrued for interest and penalties at November 6, 2021 and October 31, 2020. The provision for income taxes for the years ended consists of the following:
The following table shows the reconciliation between the statutory federal income tax rate and the actual provision for income taxes for the years ended:
The types of temporary differences between the tax bases of assets and liabilities and their financial reporting amounts and the related deferred tax assets and deferred tax liabilities are as follows:
These amounts are included in the accompanying consolidated balance sheets under the following captions:
In assessing the ability to realize a portion of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. For fiscal years 2021 and 2020, the Company determined that a valuation reserve for the Company’s deferred tax assets was not considered necessary as the deferred tax assets were fully realizable.
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Stockholders' Equity |
12 Months Ended |
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Nov. 06, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 11 Stockholders’ Equity Authorized preferred stock may be issued in series with rights and preferences designated by the Board of Directors at the time it authorizes the issuance of such stock. The Company has never issued any preferred stock. Treasury stock is recorded at cost and is presented as a reduction of stockholders’ equity in the accompanying consolidated financial statements. The Company repurchased 100,346 and 33,100 shares of its common stock during fiscal years 2021 and 2020, respectively.
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Stock Option Plan |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Plan | NOTE 12 Stock Option Plan In June 2011, the Company’s Board of Directors adopted and the Company’s shareholders later approved, the Nobility Homes, Inc. 2011 Stock Incentive Plan (the “Plan”), providing for the issuance of options to purchase shares of common stock, stock appreciation rights and other stock-based awards to employees and of 300,000non-employee directors. A total 2026 . At November 6, 2021, 252,700 options were available for future grant under the Plan and 47,300 options were outstanding.The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is to be recognized over the period during which an employee is required to provide service in exchange for the award (usually the vesting period). The grant date fair value of employee share options and similar instruments will be estimated using option-pricing models adjusted for the unique characteristics of those instruments (unless observable market prices for the same or similar instruments are available). If an equity award is modified after the grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. During fiscal years 2021 and 2020, the Company recognized compensation cost related to the vesting of stock options of approximately $69,750 and $3,624 respectively. A summary of information with respect to options granted is as follows:
The aggregate intrinsic value in the table above represents total intrinsic value (of options in the money), which is the difference between the Company’s closing stock price on the last trading day of fiscal year 2021 and the exercise price times the number of shares, that would have been received by the option holder had the option holder exercised their options on November 6, 2021. The following table summarizes information about the outstanding stock options at November 6, 2021:
The fair value of each option is determined using the Black-Scholes option-pricing model which values options based on the stock price at the grant date, the expected life of the option, the estimated volatility of the stock, expected dividend payments, and the risk-free interest rate over the expected life of the option. The dividend yield was calculated by dividing the current annualized dividend by the option exercise price for each grant. The expected volatility was determined considering the Company’s historical stock prices for the fiscal year the grant occurred and prior fiscal years for a period equal to the expected life of the option. The risk-free interest rate was the rate available on zero coupon U.S. government obligations with a term equal to the expected life of the option. The expected life of the option was estimated based on the exercise history from previous grants.
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Employee Benefit Plan |
12 Months Ended |
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Nov. 06, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | NOTE 13 Employee Benefit Plan The Company has a defined contribution retirement plan (the “Plan”) qualifying under Section 401(k) of the Internal Revenue Code. The Plan covers employees who have met certain service requirements. The Company makes a discretionary matching contribution, up to a maximum of 6% of an employee’s compensation. The contribution expense charged to operations amounted to approximately $219,900 and $175,000 in fiscal years 2021 and 2020, respectively.
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Commitments and Contingent Liabilities |
12 Months Ended |
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Nov. 06, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 14 Commitments and Contingent Liabilities Operating Leases – On November 3, 2019, the Company adopted ASC Topic 842 using the modified retrospective method applied to leases that were in place as of November 3, 2019. Results for reporting periods beginning after November 3, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allows for the historical lease classification to be carried forward, the Company’s assessments on whether a contract is or contains a lease, and the Company’s initial direct costs for any leases that exist prior to adoption of the new standard. The Company also elected the short-term lease recognition exemption for all leases that qualify. To determine the present value of minimum future lease payments for operating leases at November 3, 2019, the Company was required to estimate a rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment (the “incremental borrowing rate” or “IBR”). The Company determined the appropriate IBR by identifying a reference rate and making adjustments that take into consideration financing options and certain lease-specific circumstances. For the reference rate, the Company used mortgage interest rates for similar terms. Right of use assets are included as a non-current asset in the amount of $1,597, net of amortization in the consolidated Balance Sheet as of November 6, 2021. Based on the terms of the lease agreements, all of the Company’s leases are classified as operating leases. The weighted average remaining lease term and weighted average discount rate of the operating leases is .08 years and 3.0%, respectively. Minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease. Individual components of the total lease cost incurred by the Company in the amount of $179,802 for the twelve months ended November 6, 2021. Other Contingent Liabilities – The Company does not maintain casualty insurance on some of its property, including the inventory at our retail centers, our plant machinery and plant equipment and is at risk for those types of losses.
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Reporting Entity and Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by Products and Services | Revenues by Products and Services pre-owned homes, and insurance agent commissions for the years ended November 6, 2021 and October 31, 2020 are as follows:
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Summary of Amounts Related to Limited Warranty | Amounts related to these warranties for fiscal years 2021 and 2020 are as follows:
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Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Short-term Investments | The following is a summary of short-term investments (available for sale):
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Fair Values of Financial Investments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value | The following table represents the Company’s financial assets and liabilities which are carried at fair value at November 6, 2021 and October 31, 2020.
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Breakdown of Elements of Inventory | A breakdown of the elements of inventory at November 6, 2021 and October 31, 2020 is as follows:
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property, Plant and Equipment with Estimated Useful Lives and Related Accumulated Depreciation | Property, plant and equipment, along with their estimated useful lives and related accumulated depreciation are summarized as follows:
|
Accrued Expenses and Other Current Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 06, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities are comprised of the following:
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 06, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Provision for Income Taxes | The provision for income taxes for the years ended consists of the following:
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Reconciliation Between Statutory Federal Income Tax Rate and Actual Provision for Income Taxes | The following table shows the reconciliation between the statutory federal income tax rate and the actual provision for income taxes for the years ended:
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Deferred Tax Assets and Deferred Tax Liabilities | The types of temporary differences between the tax bases of assets and liabilities and their financial reporting amounts and the related deferred tax assets and deferred tax liabilities are as follows:
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Accompanying Deferred Current and Non current Tax Assets and Liabilities in Consolidated Balance Sheet | These amounts are included in the accompanying consolidated balance sheets under the following captions:
|
Stock Option Plan (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 06, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options Granted | A summary of information with respect to options granted is as follows:
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Outstanding Stock Options | The following table summarizes information about the outstanding stock options at November 6, 2021:
|
Reporting Entity and Significant Accounting Policies - Revenues by Products and Services (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Sales Information [Line Items] | ||
Total net sales | $ 45,062,558 | $ 41,612,307 |
Manufactured Housing [Member] | ||
Sales Information [Line Items] | ||
Total net sales | 43,963,239 | 40,775,887 |
Pre-Owned Homes [Member] | ||
Sales Information [Line Items] | ||
Total net sales | 816,165 | 552,421 |
Insurance Agent Commissions [Member] | ||
Sales Information [Line Items] | ||
Total net sales | $ 283,154 | $ 283,999 |
Reporting Entity and Significant Accounting Policies - Summary of Amounts Related to Limited Warranty (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Accounting Policies [Abstract] | ||
Beginning accrued warranty expense | $ 125,000 | $ 125,000 |
Less: reduction for payments | (465,549) | (419,731) |
Plus: additions to accrual | 465,549 | 419,731 |
Ending accrued warranty expense | $ 125,000 | $ 125,000 |
Investments - Summary of Short-term Investments (Detail) - USD ($) |
Nov. 06, 2021 |
Oct. 31, 2020 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 167,930 | $ 167,930 |
Available-for-sale Securities, Gross Unrealized Gains | 453,998 | 191,030 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Estimated Fair Value | $ 621,928 | $ 358,960 |
Fair Values of Financial Investments - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) |
Nov. 06, 2021 |
Oct. 31, 2020 |
---|---|---|
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | $ 621,928 | $ 358,960 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | 621,928 | 358,960 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | ||
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company |
Other Investments - Additional Information (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Distributions from joint venture - Majestic 21 | $ 0 | $ 0 |
Amount invested in joint venture - Majestic 21 | $ 250,000 | |
Majestic 21 [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50.00% | |
Profit and loss basis point | 50/50 basis |
Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($) |
Nov. 06, 2021 |
Oct. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,225,532 | $ 1,203,282 |
Work-in-process | 97,021 | 107,651 |
Inventory consigned to affiliated entities | 794,766 | 1,277,681 |
Finished homes | 7,140,880 | 6,543,861 |
Model home furniture | 136,089 | 162,202 |
Inventories | 10,394,288 | 9,294,677 |
Pre-owned homes | 1,297,475 | 1,686,373 |
Less homes expected to sell in 12 months | (542,081) | (441,937) |
Pre-owned homes, long-term | $ 755,394 | $ 1,077,240 |
Property Plant and Equipment - Additional Information (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 186,320 | $ 180,047 |
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) |
Nov. 06, 2021 |
Oct. 31, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued warranty expense | $ 125,000 | $ 125,000 |
Accrued property and sales taxes | 351,784 | 370,694 |
Other accrued expenses | 1,037,183 | 888,139 |
Total accrued expenses and other current liabilities | $ 1,513,967 | $ 1,383,833 |
Proceeds Received Under Escrow Arrangement - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
Nov. 02, 2019 |
|
Related Party Transaction [Line Items] | |||
Proceeds received under escrow arrangement | $ 246,216 | $ 421,099 | $ 421,099 |
Majestic 21 [Member] | |||
Related Party Transaction [Line Items] | |||
Proceeds received under escrow arrangement | $ 246,216 | $ 421,099 |
Income Taxes - Additional Information (Detail) |
12 Months Ended |
---|---|
Nov. 06, 2021
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Percentage of tax benefit | 50.00% |
Tax benefit | $ 0 |
Income Taxes - Summary of Provision for Income Taxes (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Current tax expense: | ||
Federal | $ 1,327,166 | $ 1,524,703 |
State | 289,593 | 283,877 |
Deferred tax (benefit) | 103,166 | 76,807 |
Provision for income taxes | $ 1,719,925 | $ 1,885,387 |
Income Taxes - Reconciliation between Statutory Federal Income Tax Rate and Actual Provision for Income Taxes (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Provision—federal statutory tax rate | $ 1,494,934 | $ 1,652,508 |
Increase (decrease) resulting from: | ||
State taxes, net of federal tax benefit | 250,708 | 277,135 |
Permanent differences: | ||
Stock option expirations | ||
Decrease in FL corporate tax rate | (135) | (3,306) |
Other comprehensive income | ||
Other | (25,582) | (40,950) |
Provision for income taxes | $ 1,719,925 | $ 1,885,387 |
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) |
Nov. 06, 2021 |
Oct. 31, 2020 |
---|---|---|
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 55,455 | $ 56,864 |
Inventories | 46,790 | |
Prepaid Expenses | 14,295 | |
Accrued expenses | 107,893 | 112,999 |
Other assets | 17,789 | 23,224 |
Lease right of use liability | 382 | 196,839 |
Stock-based compensation | 19,502 | 2,894 |
Total deferred tax assets | 215,316 | 439,610 |
Deferred tax liabilities: | ||
Depreciation | (135,466) | (141,270) |
Carrying value of investments | (109,146) | (47,435) |
Amortization | (37,374) | (38,324) |
Prepaid expenses | (32,516) | (33,562) |
Lease right of use asset | (382) | (175,421) |
Net deferred tax assets (liabilities) | $ (99,568) | $ 3,598 |
Income Taxes - Accompanying Deferred Current and Non-current Tax Assets and Liabilities in Consolidated Balance Sheet (Detail) - USD ($) |
Nov. 06, 2021 |
Oct. 31, 2020 |
---|---|---|
Current assets (liabilities): | ||
Deferred tax assets | ||
Deferred tax liabilities | ||
Net current deferred tax assets | ||
Non-current assets (liabilities): | ||
Deferred tax assets | 215,316 | 439,610 |
Deferred tax liabilities | (314,884) | (436,012) |
Net non-current deferred tax assets (liabilities) | (99,568) | 3,598 |
Net deferred tax assets (liabilities) | $ (99,568) | $ 3,598 |
Stockholders' Equity - Additional Information (Detail) - shares |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Equity [Abstract] | ||
Repurchased shares of common stock | 100,346 | 33,100 |
Stock Option Plan - Additional Information (Detail) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
Nov. 02, 2019 |
Jun. 30, 2011 |
|
Shares reserved for issuance | 252,700 | 300,000 | ||
Options outstanding, shares outstanding | 47,300 | 27,300 | 2,750 | |
Compensation cost related to the vesting of stock options | $ 69,750 | $ 3,624 |
Employee Benefit Plan - Additional Information (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Nov. 06, 2021 |
Oct. 31, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum employee compensation | 6.00% | |
Contribution expense charged to operations | $ 219,900 | $ 175,000 |
Commitments and Contingent Liabilities - Additional Information (Detail) |
12 Months Ended |
---|---|
Nov. 06, 2021
USD ($)
| |
Commitments And Contingencies [Line Items] | |
Operating lease right of use assets | $ 1,597 |
Lease cost | $ 179,802 |
Weighted average remaining lease term | 8 years |
Weighted average discount rate | 3.00% |
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