Note 3 - Discontinued Operations

9 Months Ended

Aug. 31, 2016

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3) Discontinued Operations

On August 11, 2016, the Company announced its plan to discontinue the operations of its Art’s Way Vessels segment in order to focus its efforts and resources on the business segments that have historically been more successful and that are expected to present greater opportunities for meaningful long-term shareholder returns. Our plan is to dispose of these assets over the next several quarters. At this time, we are working with local businesses to sell our remaining inventory, which we expect to complete within the next several months.

As Vessels was a unique business unit of the Company, its liquidation will be a strategic shift. In accordance with Accounting Standard Code Topic 360, the Company has classified Vessels as discontinued operations for all periods presented.

Income from discontinued operations, before income taxes in the accompanying Condensed Consolidated Statements of Operations, is comprised of the following:

	Three Months Ended						Nine Months Ended
	August 31, 2016			August 31, 2015			August 31, 2016			August 31, 2015
Revenue from external customers	$	358,253		$	371,751		$	1,480,688		$	1,374,384
Gross Profit		(97,357	)		3,278			(6,965	)		108,935
Operating Expense		104,113			108,048			362,859			280,039
Income (loss) from operations		(201,470	)		(104,770	)		(369,824	)		(171,104	)
Income (loss) before tax		(207,203	)		(113,122	)		(387,321	)		(191,146	)

The components of discontinued operations in the accompanying Condensed Consolidated Balance Sheets are as follows:

	August 31, 2016		November 30, 2015
Cash	$	-	$	103
Accounts Receivable - Net		219,714		175,211
Inventories, net		207,206		514,647
Property, plant, and equipment, net		1,803,235		1,870,649
Other Assets		3,531		4,595
Assets of discontinued operations	$	2,233,686	$	2,565,205
Accounts payable	$	16,215	$	26,531
Accrued compensation		26,311		33,431
Accrued expenses		73,115		58,948
Notes Payable		747,980		842,769
Liabilities of discontinued operations	$	863,621	$	961,679