Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

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

The Company determined that its business segments also represent its reportable segments. The reportable segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by the Company's CODM to assess operating performance and allocate resources. The CODM is the Company’s Chief Executive Officer, Mr. Gregory D. Rizzo. The Company's CODM evaluates segment performance based on gross profit, segment operating income (loss) less depreciation, and capital expenditures. The information provided to the Company's CODM excludes for purposes of making decisions and assessing segment performance other assets or other income information.

Information by segment is as follows:

	Fastener (1)			Assembly Equipment (2)		Other			Consolidated
Year Ended December 31, 2024:
Net Sales	$	23,195,843		$	3,822,389	$	-		$	27,018,232
Less: Intercompany Sales		(31,605	)		—		—			(31,605	)
Total Sales to External Customers		23,164,238			3,822,389		—			26,986,627
Cost of Goods Sold		22,864,498			3,061,949		—			25,926,447
Segment Gross Profit		299,740			760,440		—			1,060,180
Selling and Engineering Expenses		354,323			6,070		756,221			1,116,614
Administrative Expenses		2,163,026			136,614		2,807,980			5,107,620
Operating (Loss) Profit		(2,217,609	)		617,756		(3,564,201	)		(5,164,054	)
Other Income		—			—		120,666			120,666
Loss Before Income Taxes									$	(5,043,388	)
Depreciation		1,075,580			95,736		2,160			1,173,476
Capital Expenditures		369,003			282,395		-			651,398
Segment Assets:
Accounts Receivable, net		2,796,198			298,713		-			3,094,911
Contract Assets		—			48,811					48,811
Assets held for sale		-			348,400		-			348,400
Inventories, net		5,056,436			1,439,734		-			6,496,170
Property, Plant and Equipment, net		9,510,881			1,224,258		-			10,735,139
Other Assets		-			-		2,646,743			2,646,743
									$	23,370,174

(1) Includes a $1,100,000 charge against Net Sales related to a customer settlement. See Note 9. Commitments and Contingencies for additional information.

(2) Includes the following exit and disposal charges related to the Albia facility closure: selling and administrative expenses for one-time termination benefits of $64,856, employee travel of $40,277, moving expenses of $27,563 and employee wages of $8,060, as well as cost of goods expenses for direct and indirect labor of $30,517. See Note 8 Exit and Disposal for additional information.

	Fastener			Assembly Equipment		Other			Consolidated
Year Ended December 31, 2023:
Net Sales	$	28,305,040		$	3,346,360	$	-		$	31,651,400
Less: Intercompany Sales		(143,678	)		-		-			(143,678	)
Total Sales to External Customers		28,161,362			3,346,360		-			31,507,722
Cost of Goods Sold		29,428,854			2,678,458		-			32,107,312
Segment Gross (Loss) Profit		(1,267,492	)		667,902		-			(599,590	)
Selling and Engineering Expenses		559,389			57,882		555,675			1,172,946
Administrative Expenses		1,920,863			60,864		2,082,983			4,064,710
Operating (Loss) Profit		(3,747,744	)		549,156		(2,638,658	)		(5,837,246	)
Other Income		-			-		108,234			108,234
Loss Before Income Taxes									$	(5,729,012	)
Depreciation		1,145,620			122,928		6,530		$	1,275,078
Capital Expenditures		1,041,896			5,235		31,236		$	1,078,367
Segment Assets:
Accounts Receivable, net		3,994,372			281,510		-			4,275,882
Contract Assets		-			118,301		-			118,301
Inventories, net		5,714,826			1,612,827		-			7,327,653
Property, Plant and Equipment, net		9,458,605			1,185,804		1,020,673			11,665,082
Other Assets		-			-		4,443,987			4,443,987
									$	27,830,905

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

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

	Fastener		Assembly Equipment		Consolidated
Year Ended December 31, 2024:
Automotive	$	15,375,697	$	201,608	$	15,577,305
Non-automotive		7,788,541		3,620,781		11,409,322
Total net sales	$	23,164,238	$	3,822,389	$	26,986,627
Year Ended December 31, 2023:
Automotive	$	19,297,188	$	131,821	$	19,429,009
Non-automotive		8,864,174		3,214,539		12,078,713
Total net sales	$	28,161,362	$	3,346,360	$	31,507,722

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

	Fastener		Assembly Equipment		Consolidated
Year Ended December 31, 2024:
United States	$	18,493,233	$	3,322,913	$	21,816,146
Foreign		4,671,005		499,476		5,170,481
Total net sales	$	23,164,238	$	3,822,389	$	26,986,627
Year Ended December 31, 2023:
United States	$	22,635,244	$	3,154,677	$	25,789,921
Foreign		5,526,118		191,683		5,717,801
Total net sales	$	28,161,362	$	3,346,360	$	31,507,722

Sales to one customer in the fastener segment accounted for 13% and 16% of consolidated revenues during 2024 and 2023, respectively. The accounts receivable balance for this customer accounted for 24% and 15% of consolidated accounts receivable as of December 31, 2024 and 2023, respectively. Sales to a second customer in the fastener segment accounted for 13% and 11% of consolidated revenues during 2024 and 2023, respectively. The accounts receivable balance for this customer accounted for 13% and 21% of consolidated accounts receivable as of December 31, 2024 and 2023, respectively. Sales to a third customer were 9% and 14% of consolidated revenue in 2024 and 2023, respectively. The accounts receivable balance for this customer accounted for 3% and 14% of consolidated accounts receivable as of December 31, 2024 and 2023, respectively. All three customers are consolidated under the Fastener segment.