Note 17 - Segment Information

3 Months Ended

Feb. 28, 2026

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

17) Segment Information

In accordance with ASC 280, “Segment Reporting," the Company’s chief operating decision maker, or CODM, has been identified as its President, Chief Executive Officer and Chairman. The CODM reviews operating results to make decisions about allocating resources and assessing performance for the entire Company and utilizes gross profit and income from operations to evaluate segment performance and allocate resources. The Company's selling, general and administrative expenses and engineering expenses are charged to each segment as incurred by each reportable segment. The Company allocates a small portion of corporate expenses from the Agricultural Products segment to the Modular Buildings segment monthly for administrative support services provided.

The Company has two reportable segments: Agricultural Products and Modular Buildings. The Agricultural Products segment manufactures and sells farm equipment and related replacement parts under the Art’s-Way Manufacturing label. The Modular Buildings segment manufactures and installs modular buildings for various uses, commonly animal containment and research laboratories under the Art's Way Scientific and Evolution Modular labels. 

The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. Management evaluates the performance of each segment based on profit or loss from operations before income taxes, exclusive of nonrecurring gains and losses.

Approximate financial information with respect to the reportable segments is as follows.

	Three Months Ended February 28, 2026
	Agricultural Products		Modular Buildings		Consolidated 1
Revenue from external customers	$	3,754,000	$	2,886,000	$	6,640,000
Gross profit		1,296,000		615,000		1,911,000
Operating Expense		1,195,000		386,000		1,581,000
Income from operations		101,000		229,000		330,000
Income (loss) before tax		9,000		246,000		255,000
Income tax expense (benefit)	$	2,000	$	57,000	$	59,000
Total Assets	$	20,604,000	$	3,960,000	$	24,564,000
Capital expenditures		140,000		36,000		176,000
Depreciation & Amortization		154,000		50,000		204,000
Interest expense		97,000		14,000		111,000
Engineering		107,000		-		107,000
Selling		287,000		150,000		437,000
General and administrative (G&A)		801,000		237,000		1,038,000
Corporate expense (included in G&A)	$	97,000	$	45,000	$	142,000

	Three Months Ended February 28, 2025
	Agricultural Products			Modular Buildings		Consolidated 1
Revenue from external customers	$	2,948,000		$	2,193,000	$	5,141,000
Gross profit		788,000			708,000		1,496,000
Operating Expense		1,167,000			327,000		1,494,000
Income (loss) from operations		(379,000	)		381,000		2,000
Income (loss) before tax		(438,000	)		368,000		(70,000	)
Income tax expense (benefit)	$	(92,000	)	$	77,000	$	(15,000	)
Total Assets	$	18,857,000		$	2,148,000	$	21,005,000
Capital expenditures		67,000			16,000		83,000
Depreciation & Amortization		148,000			60,000		208,000
Interest Expense		61,000			15,000		76,000
Engineering		85,000			-		85,000
Selling		206,000			144,000		350,000
General and administrative (G&A)		876,000			183,000		1,059,000
Corporate expense (included in G&A)	$	101,000		$	45,000	$	146,000

1. The consolidated total in the tables is a sum of segment figures and may not tie to actual figures in the condensed consolidated financial statements due to rounding.