artw20170531

Nature of Operations [Text Block]

)

Description of the Company

Unless otherwise specified, as used in this Quarterly Report on Form

-Q, the terms “we,” “us,” “our,” “Art’s-Way,” and the “Company,” refer to Art’s-Way Manufacturing Co., Inc., a Delaware corporation headquartered in Armstrong, Iowa, and its wholly-owned subsidiaries.

We began operations as a farm equipment manufacturer in

1956.

Since that time, we have become a major worldwide manufacturer of agricultural equipment. Our principal manufacturing plant is located in Armstrong, Iowa.

We have organized our business into

three

operating segments. Management separately evaluates the financial results of each segment because each is a strategic business unit offering different products and requiring different technology and marketing strategies. Our agricultural products segment (“Manufacturing”) manufactures farm equipment under the Art’s-Way Manufacturing label and private labels. Our modular buildings segment (“Scientific”) manufactures modular buildings for various uses, commonly animal containment and research laboratories and our tools segment (“Metals”) manufactures steel cutting tools and inserts. During the

third

quarter of fiscal

2016,

we discontinued our pressurized vessels segment (“Vessels”) that manufactured pressurized vessels. For more information on discontinued operations, see Note

“Discontinued Operations.” For detailed financial information relating to segment reporting, see Note

“Segment Information.”

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Note 2 - Summary of Significant Account Policies

6 Months Ended

May 31, 2017

Significant Accounting Policies [Text Block]

)

Summary of Significant Account Policies

Statement Presentation

-K for the fiscal year ended

November 30, 2016.

The results of operations for the

three

and

six

months ended

May 31, 2017

are

not

necessarily indicative of the results for the fiscal year ending

November 30, 2017.

2017.

Since the Company believes that it is more likely than

not

that

income tax benefit will occur if the foreign equity is sold or liquidated, the cumulative translation adjustment has

not

been tax adjusted.

Estimates

three

and

six

months ended

May 31, 2017.

Actual results could differ from those estimates.

Reclassification

effect on previously reported results of operations or retained earnings.

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Note 3 - Discontinued Operations

6 Months Ended

May 31, 2017

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

)

Discontinued Operations

Effective

October 31, 2016,

the Company discontinued the operations of its 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 to dispose of the remaining assets, primarily the real estate.

As Vessels was a unique business unit of the Company, its liquidation was 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
	May 31, 2017			May 31, 2016
Revenue from external customers	$	-		$	443,119
Gross Profit		(23,527	)		15,976
Operating Expense		219			112,586
Income (loss) from operations		(23,746	)		(96,610	)
Income (loss) before tax		(27,665	)		(104,994	)

	Six Months Ended
	May 31, 2017			May 31, 2016
Revenue from external customers	$	-		$	1,122,435
Gross Profit		(23,572	)		90,393
Operating Expense		252			258,746
Income (loss) from operations		(23,824	)		(168,353	)
Income (loss) before tax		(22,789	)		(180,119	)

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

	May 31, 2017		November 30, 2016
Accounts Receivable - Net	$	7,500	$	9,700
Property, plant, and equipment, net		1,716,397		1,745,528
Assets of discontinued operations	$	1,723,897	$	1,755,228

Accounts payable	$	364	$	1,588
Accrued expenses		51,095		50,061
Notes Payable		650,911		715,945
Liabilities of discontinued operations	$	702,370	$	767,594

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Note 4 - Net Income (Loss) Per Share of Common Stock

6 Months Ended

May 31, 2017

Earnings Per Share [Text Block]

)

Net Income (Loss) Per Share of Common Stock

Basic and diluted earnings (loss) per common share have been computed based on the following as of

May 31, 2017

and

May 31, 2016:

	For the three months ended
	May 31, 2017			May 31, 2016
Numerator for basic and diluted (loss) earnings per common share:

Net (loss) income from continuing operations	$	(508,907	)	$	16,925
Net (loss) income from discontinued operations		(18,653	)		(73,496	)
Net (loss) income	$	(527,560	)	$	(56,571	)

Denominator:
For basic (loss) earnings per share - weighted average common shares outstanding		4,158,969			4,101,810
Effect of dilutive stock options		-			-
For diluted (loss) earnings per share - weighted average common shares outstanding		4,158,969			4,101,810


Earnings (Loss) per share - Basic:
Continuing Operations	$	(0.12	)	$	0.00
Discontinued Operations	$	(0.00	)	$	(0.02	)
Net Income (Loss) per share	$	(0.12	)	$	(0.02	)

Earnings (Loss) per share - Diluted:
Continuing Operations	$	(0.12	)	$	0.00
Discontinued Operations	$	(0.00	)	$	(0.02	)
Net Income (Loss) per share	$	(0.12	)	$	(0.02	)

	For the six months ended
	May 31, 2017			May 31, 2016
Numerator for basic and diluted (loss) earnings per common share:

Net (loss) income from continuing operations	$	(762,547	)	$	150,485
Net (loss) income from discontinued operations		(15,041	)		(126,084	)
Net (loss) income	$	(777,588	)	$	24,401

Denominator:
For basic (loss) earnings per share - weighted average common shares outstanding		4,142,672			4,088,073
Effect of dilutive stock options		-			-
For diluted (loss) earnings per share - weighted average common shares outstanding		4,142,672			4,088,073


Earnings (Loss) per share - Basic:
Continuing Operations	$	(0.18	)	$	0.04
Discontinued Operations	$	(0.00	)	$	(0.03	)
Net Income (Loss) per share	$	(0.18	)	$	0.01

Earnings (Loss) per share - Diluted:
Continuing Operations	$	(0.18	)	$	0.04
Discontinued Operations	$	(0.00	)	$	(0.03	)
Net Income (Loss) per share	$	(0.18	)	$	0.01

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Note 5 - Inventory

6 Months Ended

May 31, 2017

Inventory Disclosure [Text Block]

)

Inventory

Major classes of inventory are:

	May 31, 2017			November 30, 2016
Raw materials	$	9,400,811		$	8,568,624
Work in process		420,553			509,198
Finished goods		6,645,239			7,054,736
	$	16,466,603		$	16,132,558
Less: Reserves		(2,511,320	)		(2,603,206	)
	$	13,955,283		$	13,529,352

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Note 6 - Accrued Expenses

6 Months Ended

May 31, 2017

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

)

Accrued Expenses

Major components of accrued expenses are:

	May 31, 2017		November 30, 2016
Salaries, wages, and commissions	$	584,568	$	542,449
Accrued warranty expense		152,964		134,373
Other		270,681		342,234
	$	1,008,213	$	1,019,056

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Note 7 - Product Warranty

6 Months Ended

May 31, 2017

Product Warranty Disclosure [Text Block]

)

Product Warranty

The Company offers warranties of various lengths to its customers depending on the specific product and terms of the customer purchase agreement. The average length of the warranty period is

one

year from the date of purchase. The Company’s warranties require it to repair or replace defective products during the warranty period at

cost to the customer. The Company records a liability for estimated costs that

may

be incurred under its warranties. The costs are estimated based on historical experience and any specific warranty issues that have been identified. Although historical warranty costs have been within expectations, there can be

assurance that future warranty costs will

not

exceed historical amounts. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the balance as necessary. The accrued warranty balance is included in accrued expenses as shown in Note

Changes in the Company’s product warranty liability for the

three

and

six

months ended

May 31, 2017

and

May 31, 2016

are as follows:

	For the three months ended
	May 31, 2017			May 31, 2016
Balance, beginning	$	125,672		$	178,978
Settlements / adjustments		(36,186	)		(71,786	)
Warranties issued		63,478			39,356
Balance, ending	$	152,964		$	146,548

	For the six months ended
	May 31, 2017			May 31, 2016
Balance, beginning	$	134,373		$	179,531
Settlements / adjustments		(109,135	)		(153,078	)
Warranties issued		127,726			120,095
Balance, ending	$	152,964		$	146,548

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Note 8 - Loan and Credit Agreements

6 Months Ended

May 31, 2017

Debt Disclosure [Text Block]

)

Loan and Credit Agreements

The Company maintains a revolving line of credit and term loans with U.S. Bank as well as a term loan with The First National Bank of West Union (n/k/a Bank

). Pursuant to a Third Loan Modification Agreement dated

March 30, 2017 (

the “Loan Modification”) entered into among U.S. Bank, as lender, the Company, as borrower, and Art’s-Way Scientific, Inc., Art’s-Way Vessels, Inc., and Ohio Metal Working Products/Art’s-Way, Inc., as guarantors, the agreements governing the U.S. Bank line of credit and certain term loans were amended effective as of

May 1, 2017

with respect to certain modifications to the U.S. Bank UHC Loan (as defined below) and effective as of

April 1, 2017

with respect to all other loan modification terms. The description that follows reflects such arrangements as amended by the Loan Modification.

U.S. Bank Revolving Line of Credit

The Company has a

$4,500,000

revolving line of credit (the “Line of Credit”) with U.S. Bank that was obtained on

May 1, 2013,

which is renewable annually with advances funding the Company’s working capital needs. As of

May 31, 2017,

the Company had a principal balance of

$3,734,114

outstanding against the Line of Credit, with

$657,766

remaining available, limited by the borrowing base calculation. The maturity date of the Line of Credit is

September 25, 2017.

The Line of Credit is secured by real property and fixed asset collateral. The Line of Credit states that the borrowing base will be an amount equal to the sum of

75%

of accounts receivable (discounted for aged accounts and customer balances exceeding

20%

of aggregate receivables), plus

50%

of inventory (this component cannot exceed

$3,375,000

and only includes finished goods and raw materials deemed to be in good condition and

not

obsolete), less any outstanding loan balance of the Line of Credit, undrawn amounts of outstanding letters of credit issued by U.S. Bank or any affiliate

, and any reserves that U.S. Bank

may

deem necessary to maintain. Monthly interest-only payments are required and the unpaid principal and accrued interest is due on the maturity date. The Company’s obligations under the Line of Credit are evidenced by a Revolving Credit Note effective

May 1, 2013,

a Revolving Credit Agreement dated

May 1, 2013,

as amended, and certain other ancillary documents.

The Line of Credit is subject to: (i) a minimum interest rate of

5.0%

per annum; and (ii) an unused fee which accrues at the rate of

0.25%

per annum on the average daily amount by which the amount available for borrowing under the Line of Credit exceeds the outstanding principal amount.

As of

May 31, 2017,

the interest rate on the Line of Credit was the minimum of

5.0%.

U.S. Bank Term Loans

May 10, 2012,

the Company obtained

$880,000

in long-term debt from U.S. Bank issued to acquire the building and property of Universal Harvester Co., Inc. located in Ames, Iowa (the “U.S. Bank UHC Loan”), the assets and operations of which are now held by Art’s Way Manufacturing Co., Inc. in Armstrong, Iowa. The maturity date of this loan is

September 25, 2017,

and the interest rate is an annual rate equal to

1.5%

plus the prime rate, but

not

less than

5%.

The interest rate will be adjusted each time that the prime rate changes. The principal balance of this loan was

$271,825

as of

May 31, 2017

. This loan was secured by a mortgage on the building and property acquired from Universal Harvester Co., Inc. in Ames, Iowa, pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated

May 10, 2012,

which was released upon the sale of our Ames, Iowa facility. The U.S. Bank UHC Loan is also secured by a mortgage on the building and property in Monona, Iowa, pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated

May 1, 2013

and a mortgage on the building and property owned by the Company in Dubuque, Iowa, pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company (as successor by merger to Art’s-Way Vessels, Inc.) and U.S. Bank, dated

May 1, 2013.

May 1, 2013,

the U.S. Bank UHC Loan and the

mortgage were amended to extend the mortgage to secure the

2013

Term Notes (defined below) in addition to the U.S. Bank UHC Loan.

Three of the Company’s outstanding term loans were obtained from U.S. Bank on

May 1, 2013.

The principal balance of these loans totaled

$1,878,549

May 31, 2017,

and they accrue interest at a rate of

1.5%

plus the prime rate, with a minimum of

per annum (the

“2013

Term Notes”)

. The interest rate will be adjusted each time that the prime rate changes. There was previously also a

fourth

term loan obtained from U.S. Bank on

May 1, 2013,

but the Company voluntarily paid off and terminated the note and the related Term Loan Agreement on

February 10, 2016.

The payoff amount of

$1,078,196

included principal and accrued and unpaid interest. As detailed in the Company’s debt summary below, monthly principal and interest payments in the aggregate amount of

$46,672

are required on the remaining

2013

Term Notes, with a maturity date of

September 25, 2017.

The Company obtained a term loan from U.S. Bank on

May 29, 2014

in the original principal amount of

$1,000,000

(the

“2014

Term Note”). The

2014

Term Note had a principal balance of

$887,164

May 31, 2017

and accrues interest at a rate of

1.5%

plus the prime rate, with a minimum of

per annum. The interest rate will be adjusted each time that the prime rate changes. The Company took on the

2014

Term Note in order to partially pay down a draw on its revolving line of credit that it had used to finance the

purchase of the building and property of Ohio Metal Working Products Company in Canton, Ohio. The maturity date of the

2014

Term Note is

September 25, 2017.

This loan is secured by a mortgage on the building and property acquired from Ohio Metal Working Products Company in Canton, Ohio pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated

May 29, 2014,

and is also subject to a Business Security Agreement between Ohio Metal Working Products/Art’s Way, Inc. (“Ohio Metal”) and U.S. Bank and a Continuing Guaranty (Unlimited) by Ohio Metal. Each of the Company’s term loans from U.S. Bank is governed by a Term Note and a Term Loan Agreement.

U.S. Bank Covenants

As of

May 31, 2017,

the U.S. Bank UHC Loan was

not

subject to financial covenants. However, under the U.S. Bank UHC Loan, the Company was required to provide to U.S. Bank information concerning its business affairs and financial condition as U.S. Bank

may

reasonably request, as well as annual financial statements prepared by an accounting firm acceptable to U.S. Bank within

120

days of the end of the year without request.

The Line of Credit, the

2013

Term Notes and the

2014

Term Note require the Company to maintain (i) a fiscal year-to-date EBITDA (with EBITDA meaning income, plus interest expense, plus income tax expense, plus depreciation expense, plus amortization expense, subject to adjustments in U.S. Bank’s sole discretion) of

as of

May 31, 2017,

and of

$648,000

as of

August 31, 2017,

and (ii) minimum liquidity as of the end of each month of

not

less than

$500,000

(with minimum liquidity meaning unrestricted cash and cash equivalents plus borrowing base availability under the Line of Credit, the

2013

Term Notes and the

2014

Term Note). The Company must also provide to U.S. Bank a

-week cash flow forecast on Tuesday of each week, a detailed backlog report by segment as of the last day of each calendar month, monthly internally prepared financial reports, year-end audited financial statements, and a monthly aging of accounts receivable, and must deliver along with any financial statements delivered to U.S. Bank a certificate of compliance executed by the Company’s chief financial officer certifying the Company’s compliance with the financial covenants. With respect to the Line of Credit, upon U.S. Bank’s request, the Company shall engage a reputable turnaround consulting firm of national or regional standing acceptable to U.S. Bank.

The

2013

Term Notes,

2014

Term Note, and Line of Credit are secured by a

first

position security interest on the assets of the Company and its subsidiaries, including but

not

limited to, inventories, machinery, equipment and real estate, in accordance with Business Security Agreements entered into by the Company and its subsidiaries, Pledge Agreements entered into by the subsidiaries and Collateral Assignment of Dealer’s Notes and Security Agreements entered into by the Company. Additionally, the Company has mortgaged certain real property noted above in favor of U.S. Bank as documented by mortgage agreements dated

May 1, 2013

and

May 29, 2014 (

together, the “Mortgages”).

If the Company or its subsidiaries (as guarantors pursuant to continuing guaranties) commits an event of default with respect to the U.S. Bank UHC Loan,

2013

Term Notes,

2014

Term Note, or Line of Credit and fails or is unable to cure that default, the interest rate on each of the loans and Line of Credit could increase by

5.0%

per annum, U.S. Bank

may

immediately terminate its obligation, if any, to make additional loans to the Company, and U.S. Bank

may

accelerate the Company’s obligations under the applicable loan or line of credit. U.S. Bank shall also have all other rights and remedies for default provided by the Uniform Commercial Code, as well as any other applicable law and the various loan agreements, including, without limitation, the right to repossess, render unusable and/or dispose of the collateral without judicial process. In addition, in an event of default, U.S. Bank

may

foreclose on mortgaged property pursuant to the terms of the Mortgages.

The Company was in compliance with all covenants under the Line of Credit, the

2013

Term Notes and the

2014

Term Note as measured on

May 31, 2017,

other than the fiscal year-to-date EBIDTA requirement of

. The main reason for the non-compliance result as of

May 31, 2017

was the net loss from continuing operations. While we are in technical default under the Line of Credit, the

2013

Term Notes and the

2014

Term Note,

notice has been received from U.S. Bank with respect to acceleration of obligations thereunder. We are currently in negotiation with U.S. Bank regarding a forbearance or similar arrangement. The next measurement date is

August 31, 2017.

Iowa Finance Authority Term Loan and Covenants

May 1, 2010,

the Company obtained a loan to finance the purchase of an additional facility located in West Union, Iowa to be used as a distribution center, warehouse facility, and manufacturing plant for certain products under the Art’s-Way brand. The funds for this loan were made available by the Iowa Finance Authority by the issuance of tax exempt bonds. This loan had an original principal amount of

$1,300,000,

an interest rate of

3.5%

per annum and a maturity date of

June 1, 2020.

February 1, 2013,

the interest rate was decreased to

2.75%

per annum. The other terms of the loan remain unchanged.

This loan from the Iowa Finance Authority, which has been assigned to The First National Bank of West Union (n/k/a Bank

), is governed by a Manufacturing Facility Revenue Note dated

May 28, 2010

as amended

February 1, 2013

and a Loan Agreement dated

May 1, 2010

and a First Amendment to Loan Agreement dated

February 1, 2013 (

collectively, “the IFA Loan Agreement”), which requires the Company to provide quarterly internally prepared financial reports and year-end audited financial statements and to maintain a minimum debt service coverage ratio of

1.5

1.0,

which is measured at

November 30

of each year. Among other covenants, the IFA Loan Agreement also requires the Company to maintain proper insurance on, and maintain in good repair, the West Union Facility, and continue to conduct business and remain duly qualified to do business in the State of Iowa. The loan is secured by a mortgage on the Company’s West Union Facility, pursuant to a Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement dated

May 1, 2010

between the Company and The First National Bank of West Union (the “West Union Mortgage”).

If the Company commits an event of default under the IFA Loan Agreement or the West Union Mortgage and does

not

cure the event of default within the time specified by the IFA Loan Agreement, the lender

may

cause the entire amount of the loan to be immediately due and payable and take any other action that it is lawfully permitted to take or in equity to enforce the Company’s performance.

The Company was in compliance with all covenants under the IFA Loan Agreement except the debt service coverage ratio as measured on

November 30, 2016.

The First National Bank of West Union has issued a waiver, and the next measurement date is

November 30, 2017.

Debt Summary

A summary of the Company’s term debt is as follows:

	May 31, 2017		November 30, 2016

U.S. Bank loan payable in monthly installments of $9,600 plus interest at 5.0%, due September 25, 2017	$	575,192	$	632,126

U.S. Bank loan payable in monthly installments of $10,965 plus interest at 5.0%, due September 25, 2017		650,911		715,945

U.S. Bank loan payable in monthly installments of $26,107 plus interest at 5.0%, due September 25, 2017		652,446		808,096

U.S. Bank loan payable in monthly installments of $10,960 plus interest at 5.0%, due September 25, 2017		271,825		337,147

U.S. Bank loan payable in monthly installments of $4,301 plus interest at 5.0%, due September 25, 2017		887,164		904,751

Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020		444,347		512,935
Total term debt	$	3,481,885	$	3,911,000
Less current portion of term debt		2,526,581		1,807,937
Term debt of discontinued operations		650,911		715,945
Term debt, excluding current portion	$	304,393	$	1,387,118

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Note 9 - Assets Available for Sale and Assets Held for Lease

6 Months Ended

May 31, 2017

Disclosure of Assets Available for Sale, Not Part of Discontinued Operations [Text Block]

)

Assets Available for Sale and Assets Held for Lease

Major components of assets available for sale (excluding assets of discontinued operations as discussed in Note

“Discontinued Operations”) are:

	May 31, 2017		November 30, 2016
Ames, Iowa powder coat paint system	$	70,000	$	70,000
	$	70,000	$	70,000

2016,

we recognized an impairment of

$44,858

related to this asset based on recent offers and comparable sales information.

We have discontinued all of our production in our West Union facility, and are now leasing the facility to a

third

party. Therefore, we have reclassified that facility to net assets held for lease of

$1,131,101

as of

May 31, 2017.

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Note 10 - Recently Issued Accounting Pronouncements

6 Months Ended

May 31, 2017

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

)

Recently Issued Accounting Pronouncements

Adopted Accounting Pronouncements

Going Concern

August 2014,

the FASB issued ASU

No.

2014

15,

“Presentation of Financial Statements – Going Concern” which is authoritative guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provide related footnote disclosures, codified in ASC

205

40,

Going Concern

. The guidance provides a definition of the term substantial doubt, requires an evaluation every reporting period including interim periods, provides principles for considering the mitigating effect of management’s plans, requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, requires an express statement and other disclosures when substantial doubt is

not

alleviated, and requires an assessment for a period of

one

year after the date that the financial statements are issued (or available to be issued). ASU

No.

2014

is effective for annual reporting periods ending after

December 15, 2016.

The Company has adopted this guidance for the year ending

November 30, 2017,

and it will apply to each interim and annual period thereafter. Its adoption has

not

had a material effect on the Company’s consolidated financial statements other than the increased disclosures.

Inventory

July 2015,

the FASB issued ASU

2015

11,

“Inventory (Topic

330

),” which requires inventory measured using any method other than last-in,

first

-out or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than the lower of cost or market. ASU

No.

2015

is effective for fiscal years beginning after

December 15, 2016,

including interim periods within those years. The Company has adopted this guidance for the year ending

November 30, 2017

, including interim periods within that reporting period. The Company chose early adoption for this guidance, as its impact was expected

not

to be material, and it will allow us to focus more of our efforts on preparing for the adoption of more complex guidance. Its adoption has

not

had a material impact on the Company’s consolidated financial statements.

Income Taxes

November 2015,

the FASB issued ASU

2015

17,

“Income Taxes (Topic

740

)”, to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU

No.

2015

is effective for fiscal years beginning after

December 15, 2017

and interim periods within annual periods beginning after

December 15, 2018.

During the

first

quarter of fiscal

2017,

the Company elected to prospectively adopt ASU

2015

17,

thus reclassifying current deferred tax assets to noncurrent on the accompanying consolidated balance sheet. The prior reporting period was

not

retrospectively adjusted. The Company chose early adoption for this guidance, as its impact was expected

not

to be material, and it will allow us to focus more of our efforts on preparing for the adoption of more complex guidance.

The adoption of this guidance had

impact on the Company’s consolidated statements of operations and comprehensive income.

Accounting Pronouncements

Not

Yet Adopted

Revenue from Contracts with Customers

May 2014,

the FASB issued ASU

No.

2014

09,

“Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic

605

)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU

2014

is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within that reporting period

, and is to be applied retrospectively, with early application

not

permitted. The Company is evaluating the new standard, and at this time believes that its Scientific segment will be impacted most significantly by this standard. We believe that this segment will need to work to revise our standard contracts with customers to more clearly define the rights and considerations transferred at the various milestones identified in the contracts. The Company believes that the other segments already have the necessary tools to evaluate our revenues in a manner consistent with the application of this standard, and will have the ability to meet the disclosure requirements using current systems. The Company continues to research and assess the implications of the adoption of this standard on our consolidated financial statements.

Leases

February 2016,

the FASB issued ASU

2016

02,

“Leases (topic

842

)”, which requires a lessee to recognize a right-of-use asset and a lease liability on its balance sheet for all leases with terms of

twelve

months or greater. This guidance is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those years. The Company will adopt this guidance for the year ending

November 30, 2020

including interim periods within that reporting period. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

XML 28 R17.htm IDEA: XBRL DOCUMENT

Note 11 - Equity Incentive Plan and Stock Based Compensation

6 Months Ended

May 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

)

Equity Incentive Plan and Stock Based Compensation

January 27, 2011,

the Board of Directors of the Company authorized and approved the Art’s-Way Manufacturing Co., Inc.

2011

Equity Incentive Plan (the

“2011

Plan”). The

2011

Plan was approved by the stockholders on

April 28, 2011.

It replaced the Employee Stock Option Plan and the Directors’ Stock Option Plan (collectively, the “Prior Plans”), and

further stock options will be awarded under the Prior Plans. Awards to directors and executive officers under the

2011

Plan are governed by the forms of agreement approved by the Board of Directors.

The

2011

Plan permits the plan administrator to award nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance awards, and stock appreciation rights to employees (including officers), directors, and consultants. The Board of Directors has approved a director compensation policy pursuant to which non-employee directors are automatically granted restricted stock awards of

1,000

shares of common stock annually or initially upon their election to the Board, which are fully vested. During the

first

six

months of fiscal

2017,

45,700

restricted stock awards have been issued to various employees, directors, and consultants, which vest over the next

three

years, and

6,000

restricted stock awards were issued to the directors upon their election in

April 2017

for a total of

51,700

year-to-date.

Stock options granted prior to

January 27, 2011

are governed by the applicable Prior Plan and the forms of agreement adopted thereunder.

stock options were granted during the

three

and

six

months ended

May 31, 2017

or in the same respective period of fiscal

2016.

We incurred a total of

$46,402

and

$72,959

of stock-based compensation expense for restricted stock awards during the

three

and

six

months ended

May 31, 2017,

compared to

$28,177

and

$39,429

of stock-based compensation expense for restricted stock awards and stock options for the same respective periods of fiscal

2016.

XML 29 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Disclosures About the Fair Value of Financial Instruments

6 Months Ended

May 31, 2017

Fair Value Disclosures [Text Block]

)

Disclosures About the Fair Value of Financial Instruments

The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties. At

May 31, 2017,

and

November 30, 2016,

the carrying amount approximated fair value for cash, accounts receivable, accounts payable, notes payable to bank, and other current and long-term liabilities. The carrying amounts approximate fair value because of the short maturity of these instruments. The fair value of the Company’s installment term loans payable also approximate recorded value because the interest rates charged under the loan terms are

not

substantially different than current interest rates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

XML 30 R19.htm IDEA: XBRL DOCUMENT

Note 13 - Segment Information

6 Months Ended

May 31, 2017

Segment Reporting Disclosure [Text Block]

)

Segment Information

There are

three

reportable segments: agricultural products, modular buildings and tools. The agricultural products segment fabricates and sells farming products as well as related equipment and replacement parts for these products in the United States and worldwide. The modular buildings segment manufactures and installs modular buildings for animal containment and various laboratory uses. The tools segment manufactures steel cutting tools and inserts.

Approximate financial information with respect to the reportable segments is as follows. The tables below exclude income and balance sheet data from discontinued operations. See Note

“Discontinued Operations.”

	Three Months Ended May 31, 2017
	Agricultural Products			Modular Buildings			Tools			Consolidated
Revenue from external customers	$	3,162,000		$	888,000		$	639,000		$	4,689,000
Income (loss) from operations		(657,000	)		(19,000	)		(45,000	)	$	(721,000	)
Income (loss) before tax		(647,000	)		(34,000	)		(56,000	)	$	(737,000	)
Total Assets		19,443,000			3,400,000			2,702,000		$	25,545,000
Capital expenditures		75,000			-			24,000		$	99,000
Depreciation & Amortization		126,000			14,000			32,000		$	172,000

	Three Months Ended May 31, 2016
	Agricultural Products			Modular Buildings		Tools			Consolidated
Revenue from external customers	$	3,567,000		$	1,250,000	$	481,000		$	5,298,000
Income (loss) from operations		(96,000	)		203,000		(43,000	)	$	64,000
Income (loss) before tax		(118,000	)		199,000		(51,000	)	$	30,000
Total Assets		20,415,000			2,626,000		2,648,000		$	25,689,000
Capital expenditures		25,000			-		10,000		$	35,000
Depreciation & Amortization		132,000			16,000		31,000		$	179,000

	Six Months Ended May 31, 2017
	Agricultural Products			Modular Buildings			Tools			Consolidated
Revenue from external customers	$	6,530,000		$	1,276,000		$	1,304,000		$	9,110,000
Income (loss) from operations		(877,000	)		(173,000	)		(25,000	)	$	(1,075,000	)
Income (loss) before tax		(865,000	)		(192,000	)		(45,000	)	$	(1,102,000	)
Total Assets		19,442,000			3,400,000			2,702,000		$	25,545,000
Capital expenditures		204,000			-			90,000		$	294,000
Depreciation & Amortization		251,000			28,000			63,000		$	342,000

	Six Months Ended May 31, 2016
	Agricultural Products		Modular Buildings		Tools			Consolidated
Revenue from external customers	$	7,765,000	$	2,193,000	$	1,053,000		$	11,011,000
Income (loss) from operations		152,000		212,000		(79,000	)	$	285,000
Income (loss) before tax		115,000		206,000		(95,000	)	$	226,000
Total Assets		20,415,000		2,626,000		2,648,000		$	25,689,000
Capital expenditures		29,000		-		33,000		$	62,000
Depreciation & Amortization		260,000		31,000		61,000		$	352,000

*Segment figures in the table

may

not

sum to the consolidated total due to rounding.

XML 31 R20.htm IDEA: XBRL DOCUMENT

Note 14 - Going Concern

6 Months Ended

May 31, 2017

Substantial Doubt about Going Concern [Text Block]

)

Going Concern

2017,

the Company has incurred operating losses from continuing operations, which has depleted working capital. The Company expects further losses during the continued depressed agricultural economy. There can be

assurance that the Company will have adequate capital resources to fund planned operations or that any additional funds will be available to the company when needed, or if available, will be available on favorable terms in the amounts required by the Company. There is also

assurance that the Company will have adequate capital to pay the scheduled maturities of term debt, referenced in more detail in Note

“Loan and Credit Agreements.” These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do

not

include any adjustments that might result from the outcome of this uncertainty.

assurance that the Company will be successful in these strategies.

XML 32 R21.htm IDEA: XBRL DOCUMENT

Note 15 - Subsequent Event

6 Months Ended

May 31, 2017

Subsequent Events [Text Block]

)

Subsequent Event

Management evaluated all other activity of the Company and concluded that

subsequent events have occurred that would require recognition in the condensed consolidated financial statements.

XML 33 R22.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	May 31, 2017
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Statement Presentation The foregoing condensed consolidated financial statements of the Company are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10 -K for the fiscal year ended November 30, 2016. The results of operations for the three and six months ended May 31, 2017 are not necessarily indicative of the results for the fiscal year ending November 30, 2017. The financial books of our Canadian operation are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities to be translated to U.S. Dollars at the exchange rate as of period end. Stockholders’ equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The resulting cumulative translation adjustment is carried on the balance sheet and is recorded in stockholders’ equity for 2017. Since the Company believes that it is more likely than not that no income tax benefit will occur if the foreign equity is sold or liquidated, the cumulative translation adjustment has not been tax adjusted.
Use of Estimates, Policy [Policy Text Block]	Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the three and six months ended May 31, 2017. Actual results could differ from those estimates.
Reclassification, Policy [Policy Text Block]	Reclassification Certain amounts in the consolidated financial statements of the Company related to the discontinuation of operations at our Vessels segment have been reclassified to conform to classifications used in the current year. The reclassifications had no effect on previously reported results of operations or retained earnings.

XML 34 R23.htm IDEA: XBRL DOCUMENT

Note 3 - Discontinued Operations (Tables)

6 Months Ended

May 31, 2017

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement [Table Text Block]

	Three Months Ended
	May 31, 2017			May 31, 2016
Revenue from external customers	$	-		$	443,119
Gross Profit		(23,527	)		15,976
Operating Expense		219			112,586
Income (loss) from operations		(23,746	)		(96,610	)
Income (loss) before tax		(27,665	)		(104,994	)

	Six Months Ended
	May 31, 2017			May 31, 2016
Revenue from external customers	$	-		$	1,122,435
Gross Profit		(23,572	)		90,393
Operating Expense		252			258,746
Income (loss) from operations		(23,824	)		(168,353	)
Income (loss) before tax		(22,789	)		(180,119	)

Disposal Groups, Including Discontinued Operations [Table Text Block]

	May 31, 2017		November 30, 2016
Accounts Receivable - Net	$	7,500	$	9,700
Property, plant, and equipment, net		1,716,397		1,745,528
Assets of discontinued operations	$	1,723,897	$	1,755,228

Accounts payable	$	364	$	1,588
Accrued expenses		51,095		50,061
Notes Payable		650,911		715,945
Liabilities of discontinued operations	$	702,370	$	767,594

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

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-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

XML 35 R24.htm IDEA: XBRL DOCUMENT

Note 4 - Net Income (Loss) Per Share of Common Stock (Tables)

6 Months Ended

May 31, 2017

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the three months ended
	May 31, 2017			May 31, 2016
Numerator for basic and diluted (loss) earnings per common share:

Net (loss) income from continuing operations	$	(508,907	)	$	16,925
Net (loss) income from discontinued operations		(18,653	)		(73,496	)
Net (loss) income	$	(527,560	)	$	(56,571	)

Denominator:
For basic (loss) earnings per share - weighted average common shares outstanding		4,158,969			4,101,810
Effect of dilutive stock options		-			-
For diluted (loss) earnings per share - weighted average common shares outstanding		4,158,969			4,101,810


Earnings (Loss) per share - Basic:
Continuing Operations	$	(0.12	)	$	0.00
Discontinued Operations	$	(0.00	)	$	(0.02	)
Net Income (Loss) per share	$	(0.12	)	$	(0.02	)

Earnings (Loss) per share - Diluted:
Continuing Operations	$	(0.12	)	$	0.00
Discontinued Operations	$	(0.00	)	$	(0.02	)
Net Income (Loss) per share	$	(0.12	)	$	(0.02	)

	For the six months ended
	May 31, 2017			May 31, 2016
Numerator for basic and diluted (loss) earnings per common share:

Net (loss) income from continuing operations	$	(762,547	)	$	150,485
Net (loss) income from discontinued operations		(15,041	)		(126,084	)
Net (loss) income	$	(777,588	)	$	24,401

Denominator:
For basic (loss) earnings per share - weighted average common shares outstanding		4,142,672			4,088,073
Effect of dilutive stock options		-			-
For diluted (loss) earnings per share - weighted average common shares outstanding		4,142,672			4,088,073


Earnings (Loss) per share - Basic:
Continuing Operations	$	(0.18	)	$	0.04
Discontinued Operations	$	(0.00	)	$	(0.03	)
Net Income (Loss) per share	$	(0.18	)	$	0.01

Earnings (Loss) per share - Diluted:
Continuing Operations	$	(0.18	)	$	0.04
Discontinued Operations	$	(0.00	)	$	(0.03	)
Net Income (Loss) per share	$	(0.18	)	$	0.01

XML 36 R25.htm IDEA: XBRL DOCUMENT

Note 5 - Inventory (Tables)

6 Months Ended

May 31, 2017

Schedule of Inventory, Current [Table Text Block]

	May 31, 2017			November 30, 2016
Raw materials	$	9,400,811		$	8,568,624
Work in process		420,553			509,198
Finished goods		6,645,239			7,054,736
	$	16,466,603		$	16,132,558
Less: Reserves		(2,511,320	)		(2,603,206	)
	$	13,955,283		$	13,529,352

XML 37 R26.htm IDEA: XBRL DOCUMENT

Note 6 - Accrued Expenses (Tables)

6 Months Ended

May 31, 2017

Schedule of Accrued Liabilities [Table Text Block]

	May 31, 2017		November 30, 2016
Salaries, wages, and commissions	$	584,568	$	542,449
Accrued warranty expense		152,964		134,373
Other		270,681		342,234
	$	1,008,213	$	1,019,056

XML 38 R27.htm IDEA: XBRL DOCUMENT

Note 7 - Product Warranty (Tables)

6 Months Ended

May 31, 2017

Schedule of Product Warranty Liability [Table Text Block]

	For the three months ended
	May 31, 2017			May 31, 2016
Balance, beginning	$	125,672		$	178,978
Settlements / adjustments		(36,186	)		(71,786	)
Warranties issued		63,478			39,356
Balance, ending	$	152,964		$	146,548

	For the six months ended
	May 31, 2017			May 31, 2016
Balance, beginning	$	134,373		$	179,531
Settlements / adjustments		(109,135	)		(153,078	)
Warranties issued		127,726			120,095
Balance, ending	$	152,964		$	146,548

XML 39 R28.htm IDEA: XBRL DOCUMENT

Note 8 - Loan and Credit Agreements (Tables)

6 Months Ended

May 31, 2017

Schedule of Debt [Table Text Block]

	May 31, 2017		November 30, 2016

U.S. Bank loan payable in monthly installments of $9,600 plus interest at 5.0%, due September 25, 2017	$	575,192	$	632,126

U.S. Bank loan payable in monthly installments of $10,965 plus interest at 5.0%, due September 25, 2017		650,911		715,945

U.S. Bank loan payable in monthly installments of $26,107 plus interest at 5.0%, due September 25, 2017		652,446		808,096

U.S. Bank loan payable in monthly installments of $10,960 plus interest at 5.0%, due September 25, 2017		271,825		337,147

U.S. Bank loan payable in monthly installments of $4,301 plus interest at 5.0%, due September 25, 2017		887,164		904,751

Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020		444,347		512,935
Total term debt	$	3,481,885	$	3,911,000
Less current portion of term debt		2,526,581		1,807,937
Term debt of discontinued operations		650,911		715,945
Term debt, excluding current portion	$	304,393	$	1,387,118

XML 40 R29.htm IDEA: XBRL DOCUMENT

Note 9 - Assets Available for Sale and Assets Held for Lease (Tables)

6 Months Ended

May 31, 2017

Disclosure of Long Lived Assets Held-for-sale [Table Text Block]

	May 31, 2017		November 30, 2016
Ames, Iowa powder coat paint system	$	70,000	$	70,000
	$	70,000	$	70,000

XML 41 R30.htm IDEA: XBRL DOCUMENT

Note 13 - Segment Information (Tables)

6 Months Ended

May 31, 2017

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended May 31, 2017
	Agricultural Products			Modular Buildings			Tools			Consolidated
Revenue from external customers	$	3,162,000		$	888,000		$	639,000		$	4,689,000
Income (loss) from operations		(657,000	)		(19,000	)		(45,000	)	$	(721,000	)
Income (loss) before tax		(647,000	)		(34,000	)		(56,000	)	$	(737,000	)
Total Assets		19,443,000			3,400,000			2,702,000		$	25,545,000
Capital expenditures		75,000			-			24,000		$	99,000
Depreciation & Amortization		126,000			14,000			32,000		$	172,000

	Three Months Ended May 31, 2016
	Agricultural Products			Modular Buildings		Tools			Consolidated
Revenue from external customers	$	3,567,000		$	1,250,000	$	481,000		$	5,298,000
Income (loss) from operations		(96,000	)		203,000		(43,000	)	$	64,000
Income (loss) before tax		(118,000	)		199,000		(51,000	)	$	30,000
Total Assets		20,415,000			2,626,000		2,648,000		$	25,689,000
Capital expenditures		25,000			-		10,000		$	35,000
Depreciation & Amortization		132,000			16,000		31,000		$	179,000

	Six Months Ended May 31, 2017
	Agricultural Products			Modular Buildings			Tools			Consolidated
Revenue from external customers	$	6,530,000		$	1,276,000		$	1,304,000		$	9,110,000
Income (loss) from operations		(877,000	)		(173,000	)		(25,000	)	$	(1,075,000	)
Income (loss) before tax		(865,000	)		(192,000	)		(45,000	)	$	(1,102,000	)
Total Assets		19,442,000			3,400,000			2,702,000		$	25,545,000
Capital expenditures		204,000			-			90,000		$	294,000
Depreciation & Amortization		251,000			28,000			63,000		$	342,000

	Six Months Ended May 31, 2016
	Agricultural Products		Modular Buildings		Tools			Consolidated
Revenue from external customers	$	7,765,000	$	2,193,000	$	1,053,000		$	11,011,000
Income (loss) from operations		152,000		212,000		(79,000	)	$	285,000
Income (loss) before tax		115,000		206,000		(95,000	)	$	226,000
Total Assets		20,415,000		2,626,000		2,648,000		$	25,689,000
Capital expenditures		29,000		-		33,000		$	62,000
Depreciation & Amortization		260,000		31,000		61,000		$	352,000

XML 42 R31.htm IDEA: XBRL DOCUMENT

Note 1 - Description of the Company (Details Textual)	6 Months Ended
Note 1 - Description of the Company (Details Textual)	May 31, 2017
Number of Operating Segments	3

XML 43 R32.htm IDEA: XBRL DOCUMENT

Note 3 - Discontinued Operations - Income from Discontinued Operations before Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Income (loss) before tax	$ (27,665)	$ (104,994)	$ (22,789)	$ (180,119)
Discontinued Operations, Held-for-sale [Member] \| Vessels Segment [Member]
Gross Profit	(23,527)	15,976	(23,572)	90,393
Operating Expense	219	112,586	252	258,746
Income (loss) from operations	(23,746)	(96,610)	(23,824)	(168,353)
Income (loss) before tax	(27,665)	(104,994)	(22,789)	(180,119)
Revenue from external customers		$ 443,119		$ 1,122,435

- Definition

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

XML 44 R33.htm IDEA: XBRL DOCUMENT

Note 3 - Discontinued Operations - Components of Discontinued Operations (Details) - USD ($)	May 31, 2017	Nov. 30, 2016
Notes Payable	$ 650,911	$ 715,945
Discontinued Operations, Held-for-sale [Member] \| Vessels Segment [Member]
Accounts Receivable - Net	7,500	9,700
Property, plant, and equipment, net	1,716,397	1,745,528
Assets of discontinued operations	1,723,897	1,755,228
Accounts payable	364	1,588
Accrued expenses	51,095	50,061
Notes Payable	650,911	715,945
Liabilities of discontinued operations	$ 702,370	$ 767,594

XML 45 R34.htm IDEA: XBRL DOCUMENT

Note 4 - Net Income (Loss) Per Share of Common Stock - Basic and Diluted Earnings Per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Denominator:
For basic (loss) earnings per share - weighted average common shares outstanding (in shares)	4,158,969	4,101,810	4,142,672	4,088,073
Effect of dilutive stock options (in shares)
For diluted (loss) earnings per share - weighted average common shares outstanding (in shares)	4,158,969	4,101,810	4,142,672	4,088,073
Earnings (Loss) per share - Basic:
Continuing Operations (in dollars per share)	$ (0.12)	$ 0	$ (0.18)	$ 0.04
Discontinued Operations (in dollars per share)	0	(0.02)	0	(0.03)
Net Income (Loss) per share (in dollars per share)	(0.12)	(0.02)	(0.18)	0.01
Earnings (Loss) per share - Diluted:
Continuing Operations (in dollars per share)	(0.12)	0	(0.18)	0.04
Discontinued Operations (in dollars per share)	0	(0.02)	0	(0.03)
Net Income (Loss) per share (in dollars per share)	$ (0.12)	$ (0.02)	$ (0.18)	$ 0.01
Numerator for basic and diluted (loss) earnings per common share:
Net (loss) income from continuing operations	$ (508,907)	$ 16,925	$ (762,547)	$ 150,485
Net (loss) income from discontinued operations	(18,653)	(73,496)	(15,041)	(126,084)
Net (loss) income	$ (527,560)	$ (56,571)	$ (777,588)	$ 24,401

XML 46 R35.htm IDEA: XBRL DOCUMENT

Note 5 - Inventory - Major Classes of Inventory (Details) - USD ($)	May 31, 2017	Nov. 30, 2016
Raw materials	$ 9,400,811	$ 8,568,624
Work in process	420,553	509,198
Finished goods	6,645,239	7,054,736
	16,466,603	16,132,558
Less: Reserves	(2,511,320)	(2,603,206)
	$ 13,955,283	$ 13,529,352

XML 47 R36.htm IDEA: XBRL DOCUMENT

Note 6 - Accrued Expenses - Major Components Of Accrued Expenses (Details) - USD ($)	May 31, 2017	Nov. 30, 2016
Salaries, wages, and commissions	$ 584,568	$ 542,449
Accrued warranty expense	152,964	134,373
Other	270,681	342,234
Total accrued liabilities, current	$ 1,008,213	$ 1,019,056

XML 48 R37.htm IDEA: XBRL DOCUMENT

Note 7 - Product Warranty (Details Textual)	3 Months Ended
Note 7 - Product Warranty (Details Textual)	May 31, 2017
Standard Product Warrant Term	1 year

XML 49 R38.htm IDEA: XBRL DOCUMENT

Note 7 - Product Warranty - Changes In Product Warranty Liability (Details) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Settlements / adjustments	$ (36,186)	$ (71,786)	$ (109,135)	$ (153,078)
Warranties issued	63,478	39,356	127,726	120,095
Balance, ending	152,964	146,548	152,964	146,548
Balance, beginning	$ 125,672	$ 178,978	$ 134,373	$ 179,531

XML 50 R39.htm IDEA: XBRL DOCUMENT

Note 8 - Loan and Credit Agreements (Details Textual)				3 Months Ended	6 Months Ended		12 Months Ended
Note 8 - Loan and Credit Agreements (Details Textual)	May 31, 2017 USD ($)	Feb. 10, 2016 USD ($)	May 10, 2012 USD ($)	Feb. 28, 2017 USD ($)	May 31, 2017 USD ($)	May 31, 2016 USD ($)	Nov. 30, 2016 USD ($)	Aug. 31, 2017 USD ($)	Apr. 30, 2017 USD ($)	May 29, 2014 USD ($)	May 01, 2013 USD ($)	Feb. 01, 2013	May 01, 2010 USD ($)
Repayments of Long-term Debt					$ 364,080	$ 1,551,398
Long-term Debt	$ 3,481,885				3,481,885		$ 3,911,000
The Line of Credit [Member] \| Revolving Credit Facility [Member] \| US Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity											$ 4,500,000
Long-term Line of Credit	3,734,114				3,734,114
Line of Credit Facility, Remaining Borrowing Capacity	$ 657,766				$ 657,766
Line of Credit Facility Borrowing Capacity Borrowing Base Percentage of Accounts Receivable	75.00%				75.00%
Line of Credit Facility Borrowing Capacity Borrowing Base Minimum Percentage of Aggregate Receivables	20.00%				20.00%
Line of Credit Facility Borrowing Capacity Borrowing Base Percentage of Inventory	50.00%				50.00%
Line of Credit Facility Borrowing Capacity Borrowing Base Maximum Inventory Amount	$ 3,375,000				$ 3,375,000
The Line of Credit [Member] \| Revolving Credit Facility [Member] \| US Bank [Member] \| Minimum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage					0.25%
Debt Instrument, Interest Rate, Stated Percentage	5.00%				5.00%
US Bank UHC Loan [Member] \| US Bank [Member]
Debt Instrument, Face Amount			$ 880,000
Long-term Debt	$ 271,825				$ 271,825
US Bank UHC Loan [Member] \| US Bank [Member] \| Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			1.50%
US Bank UHC Loan [Member] \| US Bank [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage			5.00%
The 2013 Term Notes [Member] \| US Bank [Member]
Repayments of Long-term Debt		$ 1,078,196
Debt Instrument, Periodic Payment				$ 46,672
Long-term Debt	$ 1,878,549				$ 1,878,549
The 2013 Term Notes [Member] \| US Bank [Member] \| Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
The 2013 Term Notes [Member] \| US Bank [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%				5.00%
The 2014 Term Note [Member] \| US Bank [Member]
Debt Instrument, Face Amount										$ 1,000,000
Long-term Debt	$ 887,164				$ 887,164
The 2014 Term Note [Member] \| US Bank [Member] \| Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
The 2014 Term Note [Member] \| US Bank [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%				5.00%
Line of Credit, 2013 Term Notes, and 2014 Term Notes [Member] \| US Bank [Member]
Debt Instrument, Requirement, Minimum EBIDTA	$ 1				$ 1
Debt Instrument, Requirement, Minimum Liquidity									$ 500,000
Line of Credit, 2013 Term Notes, and 2014 Term Notes [Member] \| US Bank [Member] \| Scenario, Forecast [Member]
Debt Instrument, Requirement, Minimum EBIDTA								$ 648,000
US Bank UHC Loan, Line of Credit, 2013 Term Notes, and 2014 Term Notes [Member] \| US Bank [Member]
Debt Instrument, Covenant Interest Rate Increase in Event of Default	5.00%				5.00%
Iowa Finance Authority Term Loan [Member]
Debt Instrument, Periodic Payment					$ 12,500		12,500
Long-term Debt	$ 444,347				$ 444,347		$ 512,935
Debt Instrument, Interest Rate, Stated Percentage	2.75%				2.75%		2.75%
Iowa Finance Authority Term Loan [Member] \| The First National Bank of West Union [Member]
Debt Instrument, Face Amount													$ 1,300,000
Debt Instrument, Interest Rate, Stated Percentage												2.75%	3.50%
Debt Instrument, Covenant Debt Service Coverage Ratio	1.5				1.5

XML 51 R40.htm IDEA: XBRL DOCUMENT

Note 8 - Loan and Credit Agreements - Summary Of Term Debt (Details) - USD ($)	May 31, 2017	Nov. 30, 2016
Term debt	$ 3,481,885	$ 3,911,000
Less current portion of term debt	2,526,581	1,807,937
Term debt of discontinued operations	650,911	715,945
Term debt, excluding current portion	304,393	1,387,118
US Bank Loan 2 [Member]
Term debt	575,192	632,126
US Bank Loan 3 [Member]
Term debt	650,911	715,945
US Bank Loan 4 [Member]
Term debt	652,446	808,096
US Bank Loan 5 [Member]
Term debt	271,825	337,147
US Bank Loan 6 [Member]
Term debt	887,164	904,751
Iowa Finance Authority Term Loan [Member]
Term debt	$ 444,347	$ 512,935

XML 52 R41.htm IDEA: XBRL DOCUMENT

Note 8 - Loan and Credit Agreements - Summary Of Term Debt (Details) (Parentheticals) - USD ($)	6 Months Ended	12 Months Ended
	May 31, 2017	Nov. 30, 2016
US Bank Loan 2 [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Debt Instrument, Periodic Payment	$ 9,600	$ 9,600
US Bank Loan 3 [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Debt Instrument, Periodic Payment	$ 10,965	$ 10,965
US Bank Loan 4 [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Debt Instrument, Periodic Payment	$ 26,107	$ 26,107
US Bank Loan 5 [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Debt Instrument, Periodic Payment	$ 10,960	$ 10,960
US Bank Loan 6 [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Debt Instrument, Periodic Payment	$ 4,301	$ 4,301
Iowa Finance Authority Term Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	2.75%	2.75%
Debt Instrument, Periodic Payment	$ 12,500	$ 12,500

XML 53 R42.htm IDEA: XBRL DOCUMENT

Note 9 - Assets Available for Sale and Assets Held for Lease (Details Textual) - USD ($)	12 Months Ended
	Nov. 30, 2016	May 31, 2017
Assets Held for Lease, Net		$ 1,131,101
Ames, Iowa Powder Coat Print System [Member]
Asset Impairment Charges	$ 44,858

XML 54 R43.htm IDEA: XBRL DOCUMENT

Note 9 - Assets Available for Sale - Major Components Assets Available for Sale (Details) - USD ($)	May 31, 2017	Nov. 30, 2016
Assets available for sale	$ 70,000	$ 70,000
Ames, Iowa Powder Coat Print System [Member]
Assets available for sale	$ 70,000	$ 70,000

XML 55 R44.htm IDEA: XBRL DOCUMENT

Note 11 - Equity Incentive Plan and Stock Based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016	Jan. 27, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				51,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		0	0	0	0
Allocated Share-based Compensation Expense		$ 46,402	$ 28,177	$ 72,959	$ 39,429
Non-qualified Stock Units to Non-employee Directors Annually or Upon Election [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						1,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
Restricted Stock [Member] \| Employees, Directors, and Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				45,700
Restricted Stock [Member] \| Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	6,000

XML 56 R45.htm IDEA: XBRL DOCUMENT

Note 13 - Segment Information (Details Textual)	6 Months Ended
Note 13 - Segment Information (Details Textual)	May 31, 2017
Number of Reportable Segments	3

XML 57 R46.htm IDEA: XBRL DOCUMENT

Note 13 - Segment Information - Segment Reporting Information (Details) - USD ($)

3 Months Ended

6 Months Ended

May 31, 2017

May 31, 2016

May 31, 2017

May 31, 2016

Nov. 30, 2016

$ 27,268,754

$ 27,242,590

293,919

$ 61,225

342,387

352,091

4,689,354

$ 5,297,970

9,110,522

11,010,651

Operating Segments [Member]

(721,384)

63,565

(1,073,816)

284,538

^[1]

25,545,000

25,689,000

25,545,000

25,689,000

^[1]

99,000

35,000

294,000

62,000

^[1]

172,000

179,000

342,000

352,000

^[1]

4,689,000

5,298,000

9,110,000

11,011,000

^[1]

(721,000)

64,000

(1,075,000)

285,000

Operating Segments [Member] | Agricultural Products [Member]

^[1]

(737,000)

30,000

(1,102,000)

226,000

^[1]

19,443,000

20,415,000

19,443,000

20,415,000

^[1]

75,000

25,000

204,000

29,000

^[1]

126,000

132,000

251,000

260,000

^[1]

3,162,000

3,567,000

6,530,000

7,765,000

^[1]

(657,000)

(96,000)

(877,000)

152,000

Operating Segments [Member] | Modular Buildings [Member]

^[1]

(647,000)

(118,000)

(865,000)

115,000

^[1]

3,400,000

2,626,000

3,400,000

2,626,000

^[1]

^[1]

14,000

16,000

28,000

31,000

^[1]

888,000

1,250,000

1,276,000

2,193,000

^[1]

(19,000)

203,000

(173,000)

212,000

Operating Segments [Member] | Tools [Member]

^[1]

(34,000)

199,000

(192,000)

206,000

^[1]

2,702,000

2,648,000

2,702,000

2,648,000

^[1]

24,000

10,000

90,000

33,000

^[1]

32,000

31,000

63,000

61,000

^[1]

639,000

481,000

1,304,000

1,053,000

^[1]

(45,000)

(43,000)

(25,000)

(79,000)