Note 14 - Going Concern

6 Months Ended

May 31, 2017

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

14 ) Going Concern

The Company’s consolidated financial statements are prepared using accounting principles generally accepted in the United States of America and applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During fiscal

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

no

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

no

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

8

“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.

Management is currently implementing several strategies aimed at alleviating our working capital shortages for the duration of the decreased economic cycle. At this time, our Dubuque facility is available for sale. Should we be able to complete a real estate sale in the near future, our bank borrowings would be decreased, and the remainder of the funds could be used to fund working capital for a time. Our facility in West Union is currently held for lease. and if sold, would also provide funds to decrease bank borrowings and fund working capital. The Company is reviewing options to address the liquidity concerns, and is actively working to restructure our debt with longer amortizations and reduced payments, while reducing our working capital needs through expense reductions. Another liquidity improvement strategy being reviewed includes the possibility of raising additional capital. There is

no

assurance that the Company will be successful in these strategies.