Equity Investment

12 Months Ended

Feb. 28, 2023

Equity Method Investment, Summarized Financial Information [Abstract]

The Company has a 50% non-controlling ownership interest in ASA Electronics, LLC and Subsidiary ("ASA"), which acts as a distributor of mobile electronics specifically designed for niche markets within the Automotive industry, including RV’s; buses; and commercial, heavy duty, agricultural, construction, powersport, and marine vehicles. ASC 810 requires the Company to evaluate non-consolidated entities periodically, and as circumstances change, to determine if an implied controlling interest exists. During Fiscal 2023, the Company evaluated this equity investment and concluded that ASA is not a variable interest entity. ASA’s fiscal year end is November 30, 2022; however, the results of ASA as of and through February 28, 2023 have been recorded in the consolidated financial statements.

The following presents summary financial information of ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company.


	February 28, 2023		February 28, 2022
Current assets	$	48,391	$	46,202
Non-current assets		6,525		7,382
Liabilities		10,880		10,888
Members' equity		44,036		42,696


	Twelve Months Ended		Twelve Months Ended		Twelve Months Ended
	February 28, 2023		February 28, 2022		February 28, 2021
Net sales	$	104,997	$	114,825	$	95,866
Gross profit		25,671		27,517		24,124
Operating income		13,749		15,695		12,938
Net income		13,938		15,780		14,700

The Company's share of income from ASA for the years ended February 28, 2023, February 28, 2022 and February 28, 2021 was $6,969, $7,890, and $7,350, respectively. In addition, the Company received cash distributions from ASA totaling $6,300, $9,809, and $6,009 during the years ended February 28, 2023, February 28, 2022, and February 28, 2021, respectively.

Undistributed earnings from equity investments amounted to $16,692 and $16,022 at February 28, 2023 and February 28, 2022, respectively.

Net sales transactions between the Company and ASA were $232, $315, and $260 for the years ended February 28, 2023, February 28, 2022, and February 28, 2021, respectively. Accounts receivable balances from ASA were $49 and $68 as of February 28, 2023 and February 28, 2022, respectively.