Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

 

 

 

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 10-K 

 

☒  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

 

For the fiscal year ended December 31, 2023

 

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

 

For the transition period from                       to                              

Commission file number: 000-000147

 

CRAWFORD UNITED CORPORATION 

(Exact name of registrant as specified in its charter)

 

Ohio	34-0288470
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10514 Dupont Avenue, Cleveland, Ohio	44108
(Address of principal executive offices)	(Zip Code)

 

Registrant's telephone number [phone]

Securities registered pursuant to

Section 12(b) of the Act:
NONE
Securities registered pursuant to Section 12(g) of the Act:

Class A Common Shares, without par value
(Title of Class)

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act. Yes ☐ No ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer   ☒	Smaller reporting company ☒
	Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s access of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. (b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

 

As of June 30, 2023, the Registrant had 2,778,892 voting Class A Common Shares outstanding and 731,848 voting Class B Common Shares outstanding. As of such date, non-affiliates held 847,420 Class A Common Shares and 128,098 Class B Common Shares. As of June 30, 2023, based on the closing price of $23.13 per Class A Common Share on the OTC Pink Open Market, the aggregate market value of the Class A Common Shares held by such non-affiliates was approximately $19,600,825. There is no trading market in the Class B Common Shares.

 

As of March 4, 2024, 2,809,219 Class A Common Shares and 731,848 Class B Common Shares were outstanding.

 

Documents Incorporated by Reference:

Portions of the Registrant’s Definitive Proxy Statement on Schedule 14A related to its 2024 Annual Meeting of Shareholders, to be filed by the Company with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year covered by this Form 10-k are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this report.

 

Except as otherwise stated, the information contained in this Form 10-K is as of December 31, 2023.

 

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PART I.	4
ITEM 1. BUSINESS	4
ITEM 1A. RISK FACTORS	7
ITEM 1B. UNRESOLVED STAFF COMMENTS	13
ITEM 1C. CYBERSECURITY	13
ITEM 2. PROPERTIES	13
ITEM 3. LEGAL PROCEEDINGS	13
ITEM 4. MINE SAFETY DISCLOSURES	14
* EXECUTIVE OFFICERS OF REGISTRANT	14
PART II.	15
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	15
ITEM 6. [RESERVED]	15
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	16
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	22
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	22
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	49
ITEM 9A. CONTROLS AND PROCEDURES	49
ITEM 9B. OTHER INFORMATION	51
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS	51
PART III.	52
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	52
ITEM 11. EXECUTIVE COMPENSATION	52
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	52
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	52
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES	52
PART IV.	53
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES	53
ITEM 16. FORM 10-K SUMMARY	53
EXHIBIT INDEX	55
SIGNATURES	57
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	58

 

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PART I

 

ITEM 1. BUSINESS. 

 

General Development of Business

Crawford United Corporation was founded in 1910 and organized in 1915 as an Ohio corporation, and first offered its securities to the public in 1959. Except as otherwise stated, the terms "Company" or "Crawford United" as used herein mean Crawford United Corporation and its wholly-owned subsidiaries, CAD Enterprises Inc., Data Genomix LLC, Federal Hose Manufacturing LLC, Crawford AE LLC doing business as Air Enterprises, Marine Products International LLC, Komtek Forge LLC, Global-Tek-Manufacturing LLC, Global-Tek Colorado LLC, Emergency Hydraulics LLC, Knitting Machinery Company of America, LLC, Reverso Pumps LLC and Separ America LLC. Crawford United Corporation is a growth-oriented holding company providing specialty industrial products to diverse markets, including healthcare, aerospace, defense, education, transportation, and petrochemical.

 

The Company reports operations for two business segments: (1) Commercial Air Handling Equipment and (2) Industrial and Transportation Products. The identification of our operating segments is based on guidance in ASC 280 “Segment Reporting”. The Company's management evaluates segment performance based primarily on operating income. Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses. The Company does not allocate corporate costs or interest expense to the respective segments.

 

Both the Commercial Air Handling Equipment segment and the Industrial and Transportation Products segment engage in business activities from which they may recognize revenues and incur expenses, including revenue and expenses relating to transactions with other components of the Company. The operating results for both the Commercial Air Handling Equipment segment and the Industrial and Transportation Products segment are reviewed regularly by our chief operating decision maker and are considered in making decisions about resources to be allocated to the segment in assessing its performance. Financial information for both segments is available in internal financial statements that are prepared on a monthly basis.

 

Commercial Air Handling Equipment:

The Commercial Air Handling Equipment segment was added June 1, 2017, when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of 50 years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.

 

Industrial and Transportation Products: 

The Industrial and Transportation Products segment was added July 1, 2016, when the Company purchased the assets of the Federal Hose Manufacturing, LLC of Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets. The Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc.(“CAD”) in Phoenix, Arizona on July 1, 2018. CAD provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions. Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels. CAD’s quality certifications include ISO 9001:2015/AS9100D, as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, and TIG/E-Beam welding. The Company added the distribution of marine hose to this segment through the acquisition of the assets of MPI Products, Inc. (“MPI”) on January 2, 2020. MPI specializes in rubber and plastic marine hose for the recreational boating industry. MPI offers certified products that meet marine industry standards and regulations. Effective April 19, 2019, the Company, completed the acquisition of substantially all of the assets of Data Genomix, Inc., an Ohio corporation (“DG”). DG is in the business of developing and commercializing marketing and data analytic technology applications. The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC), in Worcester, Massachusetts on January 15, 2021. Komtek Forge LLC is a supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical and defense industries. The Company purchased all of the membership interests of Global-Tek-Manufacturing LLC (“Global-Tek”), in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology LLC (name later changed to Global-Tek Colorado LLC or “Global-Tek Colorado”) in Longmont, Colorado on March 2, 2021. Global-Tek and Global-Tek Colorado specialize in providing customers with highly engineered manufacturing solutions, including CNC machining, anodizing, electro polishing and laser marking for customers in the defense, aerospace and medical device markets. The Company purchased substantially all of the assets of Emergency Hydraulics LLC (“Emergency Hydraulics”), in Ocala, Florida on July 1, 2021. Emergency Hydraulics provides hydraulic hoses, air tank assemblies and related products to manufacturers of firefighting trucks and other emergency vehicles. The company purchased substantially all of the assets of Crawford REV Acquisition Company LLC (name later changed to Reverso Pumps LLC or “Reverso Pumps”), in Davie, Florida on January 10, 2022. Reverso Pumps develops, designs, manufactures, sells and distributes oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems.

 

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The company purchased substantially all of the assets of Crawford SEP Acquisition Company LLC (name later changed to Separ America LLC or “Separ America”), in Davie, Florida on January 10, 2022. Separ America develops, designs, manufactures, sells and distributes oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems. The company purchased substantially all of the assets of KMC Corp. dba Knitting Machinery Corp. (“Knitting Machinery”), in Cleveland, Ohio and Greenville, Ohio on May 1, 2022. Knitting Machinery specializes in manufacturing hose reinforcement machinery for the plastic, rubber and silicone industries.

 

The factors used to determine the Company’s reportable segments follow the guidance of ASC 280-10-50-21 and 50-10-22 and include consideration of the type of products or services delivered, the customers and end markets served, the appliable revenue recognition methodology and the length of time it takes to deliver products or services to customers. The Commercial Air Handling Equipment segment was identified as a reportable segment consisting of Air Enterprises, because Air Enterprises is strategically and operationally different from our other companies in several ways. First, Air Enterprises sells equipment to end customers and our other businesses that fall into the Industrial and Transportation Products segment sell products and components to end customers, not equipment. Second, the Commercial Air Handling Equipment segment delivers custom air handling solutions to customers which is different than the Industrial and Transportation Products segment which delivers manufactured metal, silicone, hydraulic and marine hoses, complex engineered components, highly engineered forgings, highly engineered and machined parts and data analytic technology applications. Third, the Commercial Air Handling Equipment segment serves customers primarily in the health care and education end markets while the Industrial and Transportation Products segment delivers products to customers in the heavy-duty truck manufacturing, agricultural, industrial, petrochemical, aerospace, defense, industrial gas turbine, medical prosthetics, alternative energy and emergency vehicle end markets. Fourth, the Commercial Air Handling Equipment segment recognizes revenue primarily over time while the Industrial and Transportation Products segment recognizes revenue primarily at a point in time. Fifth, the Commercial Air Handling Equipment segment manufactures custom air handling solutions for customers over a period of three to eighteen months from the time the order is received to the time the air handling solution is delivered to the end customer as compared to the Industrial and Transportation Products segment which sells and delivers products to customers much more quickly, often within 30 days or less. For the reasons previously mentioned, Air Enterprises is strategically and operationally different than the other businesses owned by the Company and management finds it useful to include this business in the Commercial Air Handling Segment which is separate and distinct from all of our other businesses that reside in the Industrial and Transportation Products segment.

 

Corporate costs not allocated to the segments: 

Costs incurred at corporate headquarters do not directly relate to the two reportable segments and thus are not allocated. The nature of these costs has remained consistent, but the dollar values have increased which coincides with the Company's growth.

 

Information by industry segment is set forth below: 

 

 

		Years Ended
		December 31,
		2023				2022
Sales summary by segment
Commercial Air Handling		$	58,378,593			$	47,649,695
Industrial and Transportation Products			85,507,341				80,105,232
Total Sales			143,885,934				127,754,927
Gross profit summary by segment
Commercial Air Handling			19,123,207				10,751,822
Industrial and Transportation Products			18,522,875				16,280,959
Total Gross Profit			37,646,082				27,032,781
Segment operating profit
Commercial Air Handling			15,367,247				6,670,069
Industrial and Transportation Products			7,594,668				5,955,820
Total Segment Operating Profit			22,961,915				12,625,889
Corporate charges not allocated to segments			5,029,444				4,092,417
Operating Income			17,932,471				8,533,472
Interest charges			1,255,984				1,138,224
(Gain) loss on investments			(7,330	)			860,273
Other (income) expense, net			(480,331	)			(1,197,218	)
Income before Provision for Income Taxes		$	17,164,148			$	7,732,194

 

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Sources and Availability of Raw Materials 

Raw materials essential to the business segments are acquired from a large number of domestic manufacturers and some materials are purchased from European and Southeast Asian sources.
 

The Industrial and Transportation products segment uses various materials in the manufacture of its products. These include forgings and castings, steel fittings and hose packing consisting of silicone, cotton and copper wire. Seven suppliers provide approximately 45% of inventory purchases in this segment. If any one of these sources of supply were interrupted for any reason, the Company would need to devote additional time and expense in obtaining the same volume of supply from its other qualified sources.

 

Aluminum, the major raw material used in construction of the Commercial Air Handling units, is sourced from two major suppliers but is generally readily available from other sources. Copper is used by suppliers of a major component used in the product and the Company maintains relationships with three suppliers of these components to limit vulnerability. The Company maintains relationships with multiple suppliers for most of the other componentry used in assembly of the product, in order to maintain best costs for material and competitive lead times. The majority of materials for this segment are sourced domestically or from Canada.

 

The Company believes it has adequate sources of supply for its primary raw materials and components and has not had difficulty in obtaining the raw materials, component parts or finished goods from its suppliers.

 

Importance of Patents, Licenses, Franchises, Trademarks and Concessions 

The Company’s Data Genomix LLC subsidiary holds a patent on technology used to facilitate highly targeted advertising to identified audience members across social media channels. Other than the names “Federal Hose”, “Marine Products International”, “CAD Enterprises”, “Global-Tek”, “Komtek Forge”, “Reverso Pumps”, "Separ Filter", "Emergency Hydraulics", "Knitting Machinery Company", "Data Genomix", and “Air Enterprises” and the FactoryBilt® and SiteBilt® registered trademarks, the Company does not have any material licenses, franchises or concessions.

 

Seasonality 

In light of the markets served by its products, the Company does not believe that its Commercial Air Handling segment nor its Industrial and Transportation Products segment businesses are seasonal in nature.

 

Dependence on Customers 

For the year ended December 31, 2023, sales to nine customers in the Commercial Air Handling Equipment segment were 18.9% of consolidated sales of the Company, while sales to nine customers in the Industrial and Transportation products segment accounted for 23.2% of consolidated sales of the Company. For the year ended December 31, 2022, sales to nine customers in the Commercial Air Handling Equipment segment were 17% of consolidated sales of the Company, while sales to nine customers in the Industrial and Transportation products segment accounted for 22.5% of consolidated sales of the Company. The Company has long-term contractual relationships with a large customer in the Industrial and Transportation products segment. Sales to this large customer for the year ended December 31, 2023 were 10% of consolidated sales of the Company compared to 6.7% of consolidated sales of the Company in prior year.

 

Competitive Conditions

The Company is engaged in highly competitive industries and faces competition from domestic and international firms. Competition in the Industrial and Transportation products segment comes domestically and internationally. The Company believes that it has a strong competitive position due to its expertise, certifications, long term customer contracts, and reputation for excellent quality. Competition in the Commercial Air Handling segment comes from both custom and non-custom air handling solution manufacturers. The Company believes that it has a strong competitive position due to the high quality and long life of the Company’s customized aluminum air handling solutions.

 

Number of Persons Employed 

Total employment by the Company was 405 full-time employees at December 31, 2023, compared to 387 full-time employees at December 31, 2022.

 

Available Information

The Company's Internet address is http://www.crawfordunited.com/. Crawford United makes available free of charge on or through its website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy and information statements and amendments and supplements to those reports and statements filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after the Company electronically files such materials with, or furnishes them to, the Securities and Exchange Commission (the "SEC"). The SEC maintains an Internet site that contains these documents at www.sec.gov.

 

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ITEM 1A. RISK FACTORS.

 

You should carefully consider the risks and uncertainties described below, together with the information included elsewhere in this Annual Report on Form 10-K and other documents we file with the SEC. The risks and uncertainties described below are those that we have identified as material, but are not the only risks and uncertainties facing us. Our business is also subject to general risks and uncertainties that affect many other companies, such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Additional risks and uncertainties not currently known to us or that we currently believe are immaterial also may impair our business, including our results of operations, liquidity and financial condition.

 

Company Risk Factors

 

Conditions in the global economy, the particular markets we serve and the financial markets may adversely affect our business and results of operations.

 

We may experience substantial increases and decreases in business volume throughout economic cycles. Industries we serve, including the heavy-duty truck, industrial equipment, aircraft, health care, education, pharmaceutical, industrial manufacturing, agricultural, marine, and petrochemical industries are sensitive to general economic conditions. Slower global economic growth or an economic recession, inflationary economic conditions, volatility in the currency and credit markets, high levels of unemployment or underemployment, reduced levels of capital expenditures, changes or anticipation of potential changes in government trade, fiscal, tax and monetary policies, public health crises, capital deficiencies and/or changes in capital requirements for financial institutions, government deficit reduction and budget negotiation dynamics, sequestration, austerity measures and other challenges that affect the global economy may adversely affect us and our distributors, customers and suppliers, including having the effect of:

 

	●	reducing demand for our products, limiting the financing available to our customers and suppliers, increasing order cancellations and resulting in longer sales cycles and slower adoption of new technologies;
	●	increasing the difficulty in collecting accounts receivable and the risk of excess and obsolete inventories;
	●	increasing price competition in our served markets;
	●	further increases in supply, freight and labor costs;
	●	supply interruptions or delays, which could disrupt our ability to produce our products;
	●	increasing the risk that counterparties to our contractual arrangements will become insolvent or otherwise unable to fulfill their contractual obligations; and
	●	adversely impacting market sizes and growth rates.

 

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If growth in the global economy or in any of the markets we serve slows for a significant period, if there is significant deterioration in the global economy or such markets or if improvements in the global economy do not benefit the markets we serve, it could have a material adverse effect on our financial condition, liquidity and results of operations.

 

Significant developments or uncertainties stemming from U.S. laws and policies, including changes in U.S. trade policies, tariffs and the reaction of other countries thereto, could have an adverse effect on our business.

 

Changes, potential changes or uncertainties in U.S. social, political, regulatory and economic conditions or laws and policies governing foreign trade, manufacturing, and development and investment in the territories and countries where we or our customers operate, could adversely affect our business and financial results. For example, increases in tariffs on certain goods imported into the United States, and substantial changes to the trade agreements, have adversely affected, and in the future could further adversely affect, our business and results of operations. Furthermore, retaliatory tariffs or other trade restrictions on products and materials that we or our customers and suppliers export or import could affect demand for our products. Direct or indirect consequences of tariffs, retaliatory tariffs or other trade restrictions may also alter the competitive landscape of our products in one or more regions of the world. Trade tensions or other governmental action related to tariffs or international trade agreements or policies has the potential to negatively impact our business, financial condition and results of operations.

 

As a result of Russia’s invasion of Ukraine, the United States, the United Kingdom and the European Union governments, among others, have developed coordinated sanctions packages. As the military conflict in Ukraine continues, there can be no certainty regarding whether such governments or other governments will impose additional sanctions or other economic or military measures against Russia. The impact of the military conflict in Ukraine, including further economic sanctions or expanded war or military conflict, as well as potential responses to them by Russia, could adversely affect our business, supply chain, suppliers or customers.

 

Decreased availability or increased costs of materials could increase our costs of producing our products.

 

We purchase raw materials, fabricated components, some finished goods and services from a variety of suppliers. Where appropriate, we employ contracts with our suppliers, both domestic and international. From time to time, however, the prices, availability, or quality of these materials fluctuate due to global market demands, import duties and tariffs, freight and labor availability and costs, economic conditions, or other conditions such as public health crises, which could impair our ability to procure necessary materials or increase the cost of these materials. Further, inflationary and other increases in costs of materials have occurred and may persist or recur from time to time. In addition, freight costs associated with shipping products and receiving materials are impacted by fluctuations in the cost of oil and gas, shipping capacity and labor shortages. A reduction in the supply, further increases in the cost or changes in quality of those materials could impact our ability to manufacture our products and could increase the cost of production, which could negatively impact our revenues and profitability.

 

Our growth could suffer if the markets into which we sell our products decline, do not grow as anticipated or experience cyclicality.

 

Our growth depends in part on the growth of the markets which we serve. Our quarterly sales and profits depend substantially on the volume and timing of orders received during the fiscal quarter, which are difficult to forecast. Any economic decline or lower than expected growth in our served markets could diminish demand for our products and services, which would adversely affect our financial results. Certain businesses of ours operate in industries that may experience seasonality or other periodic, cyclical downturns. Demand for our products is also sensitive to changes in customer order patterns, which may be affected by announced price changes, marketing, new product introductions, changes in distributor or customer inventory levels due to distributor or customer management thereof or other factors. Any of these factors could adversely affect our growth and results of operations in any given period.

 

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Our revolving credit facility contains various covenants limiting the discretion of our management in operating our business, including requiring us to maintain a maximum fixed charge coverage ratio.

 

Our revolving credit facility contains various restrictive covenants and restrictions, including financial covenants that limit management’s discretion in operating our business. In particular, these instruments limit our ability to, among other things:

 

	●	incur additional debt;
	●	grant liens on assets;
	●	make investments, including capital expenditures;
	●	sell or acquire assets outside the ordinary course of business;
	●	engage in transactions with affiliates; and
	●	make fundamental business changes.

 

The revolving credit facility also requires us to maintain a fixed charge coverage ratio of 1.20 to 1.00. If we fail to comply with the restrictions in the revolving credit facility or any other current or future financing agreements, a default may allow the creditors under the relevant agreements to accelerate the related debts and to exercise their remedies under these agreements, which typically will include the right to declare the principal amount of that debt, together with accrued and unpaid interest, and other related amounts, immediately due and payable, to exercise any remedies the creditors may have to foreclose on assets that are subject to liens securing that debt, and to terminate any commitments they had made to supply further funds. The exercise of any default remedies by our creditors would have a material adverse effect on our ability to finance working capital needs and capital expenditures.

 

We are dependent on key customers.

 

We rely on several key customers. For the twelve months ended December 31, 2023, our ten largest customers accounted for approximately 33% of our net sales. For the twelve months ended December 31, 2022, our ten largest customers accounted for approximately 29% of our net sales. Due to competitive issues, we have lost key customers in the past and may again in the future. Customer orders are dependent upon their markets and may be subject to delays or cancellations. As a result of dependence on our key customers, we could experience a material adverse effect on our business and results of operations if any of the following were to occur:

 

	●	the loss of any key customer, in whole or in part;
	●	the insolvency or bankruptcy of any key customer;
	●	a declining market in which customers reduce orders or demand reduced prices; or
	●	a strike or work stoppage at a key customer facility, which could affect both their suppliers and customers.

 

If any of our key customers become insolvent or file for bankruptcy, our ability to recover accounts receivable from that customer would be adversely affected and any payments we received in the preference period prior to a bankruptcy filing may be potentially forfeitable, which could adversely impact our results of operations.

 

Our acquisition of businesses could negatively impact our financial results.

 

As part of our business strategy, we acquire businesses. Acquisitions involve a number of financial, accounting, managerial, operational, legal, compliance and other risks and challenges, including the following, any of which could adversely affect our business and our financial results:

 

	●	any business that we acquire could under-perform relative to our expectations and the price that we paid or not perform in accordance with our anticipated timetable, or we could fail to operate any such business profitably;
	●	acquisitions could cause our financial results to differ from our own or the investment community’s expectations in any given period, or over the long-term;

 

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	●	pre-closing and post-closing earnings charges could adversely impact operating results in any given period, and the impact may be substantially different from period-to-period;
	●	acquisitions could create demands on our management, operational resources and financial and internal control systems that we are unable to effectively address;
	●	we could experience difficulty in integrating personnel, operations and financial and other controls and systems and retaining key employees and customers;
	●	we may be unable to achieve cost savings or other synergies anticipated in connection with an acquisition; or
	●	we may assume unknown liabilities, known contingent liabilities that become realized, known liabilities that prove greater than anticipated or internal control deficiencies from the acquired company’s activities and the realization of any of these liabilities or deficiencies may increase our expenses or adversely affect our financial position.

 

Future claims, litigation and regulatory actions could adversely affect our financial condition and our ability to conduct our business.

 

While we strive to ensure that our products comply with applicable government regulatory standards and internal requirements and that our products perform effectively and safely, customers from time to time could claim that our products do not meet contractual requirements, and users could be harmed by use or misuse of our products. This could give rise to breach of contract, warranty or recall claims, or claims for negligence, product liability, strict liability, personal injury or property damage. Product liability insurance coverage may not be available or adequate in all circumstances. In addition, claims may arise related to patent infringement, environmental liabilities, distributor terminations, commercial contracts, antitrust or competition law, employment law and employee benefits issues and other regulatory matters. While we have in place processes and policies to mitigate these risks and to investigate and address such claims as they arise, we cannot predict the underlying costs to defend or resolve such claims.

 

Our business operations could be significantly disrupted by the loss of any members of our senior management team and segment leaders.

 

Our success depends to a significant degree upon the continued contributions of our senior management team and segment leaders. Our senior management team has extensive marketing, sales, manufacturing, finance and engineering experience, and we believe that the depth of our management team is instrumental to our continued success. The loss of any of our key managers in the future could significantly impede our ability to successfully implement our business strategy, financial plans, expansion of services, marketing and other objectives.

 

A significant disruption in, or breach in security of, our information technology systems or data could adversely affect our business, reputation and results of operations.

 

We rely on information technology systems to process, transmit and store electronic information (including sensitive data such as confidential business information and personally identifiable data relating to employees and customers), and to manage or support a variety of critical business processes and activities (such as receiving and fulfilling orders, billing, collecting and making payments, shipping products and fulfilling contractual obligations). These systems may be damaged, disrupted or shut down due to attacks by computer hackers, computer viruses, ransomware, human error or malfeasance, power outages, hardware failures, telecommunication or utility failures, catastrophes or other unforeseen events, and in any such circumstances our system redundancy and other disaster recovery planning may be ineffective or inadequate. Security breaches could result in the misappropriation, destruction or unauthorized disclosure of confidential information or personal data belonging to us or to our employees, customers or suppliers. Our information technology systems may be exposed to computer viruses, malicious codes, unauthorized access and other cyber-attacks and we expect the sophistication and frequency of such attacks to continue to increase. Any of the attacks, breaches or other disruptions or damage described above could interrupt our operations or the operations of our customers, delay production and shipments, result in theft of our and our customers’ intellectual property and trade secrets, damage customer and employee relationships and our reputation or result in defective products, legal claims and proceedings, liability and penalties under privacy laws and increased costs for security and remediation, each of which could adversely affect our business, reputation and results of operations.

 

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General Risk Factors

 

We are engaged in highly competitive industries and if we are unable to compete effectively, we may experience decreased demand and decreased market share.

 

Our businesses operate in industries that are highly competitive. In order to compete effectively, we must retain longstanding relationships with major customers and continue to grow our business by establishing relationships with new customers, continually developing new products to maintain and expand our brand recognition and position in various product categories and penetrating new markets, including high-growth markets. Our failure to compete effectively and/or pricing pressures resulting from competition may adversely impact our financial results.

 

Adverse credit market conditions may significantly affect our access to capital, cost of capital and ability to meet liquidity needs.

 

Disruptions, uncertainty or volatility in the credit markets may adversely impact our ability to access credit already arranged and the availability and cost of credit to us in the future. These market conditions may limit our ability to replace, in a timely manner, maturing liabilities and access the capital necessary to grow and maintain our business. Accordingly, we may be forced to delay raising capital or pay unattractive interest rates, which could increase our interest expense, decrease our profitability and significantly reduce our financial flexibility. Longer-term disruptions in the capital and credit markets as a result of the uncertainty, changing or increased regulation, reduced alternatives or failures of significant financial institutions could adversely affect our access to liquidity needed for our business. Any disruption could require us to take measures to conserve cash until the markets stabilize or until alternative credit arrangements or other funding for our business needs can be arranged. Such measures include deferring capital expenditures or other discretionary uses of cash. Overall, our results of operations, financial condition and cash flows could be materially adversely affected by disruptions in the credit markets.

 

Our business is subject to a variety of domestic and international laws, rules, policies and other obligations regarding data protection.

 

The processing and storage of certain information is increasingly subject to privacy and data security regulations and many such regulations are country-specific. The interpretation and application of data protection laws in the U.S., Europe and elsewhere, including but not limited to the California Consumer Privacy Act and the General Data Protection Regulation (the “GDPR”), are uncertain, evolving and may be inconsistent among jurisdictions. Complying with these various laws may be difficult and could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business. We may be required to expend additional resources to continue to enhance our information privacy and security measures, investigate and remediate any information security vulnerabilities and/or comply with regulatory requirements.

 

Changes in foreign, cultural, political and financial market conditions could impair the Company’s operations and financial performance.

 

The economies of foreign countries important to the Company’s operations could suffer slower economic growth or economic, social and/or political instability or hyperinflation in the future. The Company’s international operations, including sourcing operations (and the international operations of the Company’s customers), are subject to inherent risks which could adversely affect the Company, including, among other things:

 

●

protectionist policies restricting or impairing the manufacturing, sales or import and export of the Company’s products, including tariffs and countermeasures;

 

●

new restrictions on access to markets;

 

●

lack of developed infrastructure;

 

●

inflation (including hyperinflation) or recession;

 

●

devaluations or fluctuations in the value of currencies;

 

●

changes in and the burdens and costs of compliance with a variety of laws and regulations, including the Foreign Corrupt Practices Act, tax laws, accounting standards, trade protection measures and import and export licensing requirements, environmental laws and occupational health and safety laws;

 

●

social, political or economic instability;

 

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●

acts of war and terrorism, military conflict and international hostilities, and changes in diplomatic or trade relationships including any retaliatory measures, sanctions, tariffs or other restrictions on commercial activity imposed in response to any acts of war, terrorism or military conflicts;

 

●

natural disasters or other crises;

 

●

reduced protection of intellectual property rights; and

 

●

increases in duties and taxation;

 

The foregoing could create uncertainty surrounding the Company’s business and the business of existing and future customers and suppliers, which could increase the cost of some of the Company’s products, thereby reducing its margins. Further, the foregoing risks could have a significant adverse impact on the Company’s ability to commercialize its products on a competitive basis in the international markets and may have a material adverse effect on its business, financial condition, and results of operations. The Company’s small sales volume in some countries, relative to some multinational and local competitors, could exacerbate such risks.

 

Should any of these risks occur, the Company’s ability to sell or export its products could be impaired; the Company could experience a loss of sales and profitability from its international operations; and/or the Company could experience a substantial impairment or loss of assets, any of which could have a material adverse impact on the Company’s business.

 

The military conflict in Ukraine has resulted in substantial economic sanctions by the U.S. and other countries against Russia including restrictions on selling or importing goods, services or technology in or from affected regions and travel bans and asset freezes impacting connected individuals and political, military, business and financial organizations in Russia. The U.S. and other countries could impose wider sanctions and take other actions if the conflict continues or further escalates. It is not possible to predict the broader consequences of this conflict, which could include further sanctions, embargoes, regional instability, geopolitical shifts and adverse effects on macroeconomic conditions, currency exchange rates and financial markets, all of which could impact our business, financial condition and results of operations.

 

Unforeseen future events may negatively impact our economic condition.

 

Future events may occur that would adversely affect the reported value of our assets. Such events may include, but are not limited to, strategic decisions made in response to changes in economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationship with significant customers. Such events may also include terrorist acts, conflicts, severe weather conditions and other natural or manmade disasters, including power outages, fires, explosions, cyber based attacks, epidemics or pandemics, and acts of God wherever located around the world. The potential for future such events, the national and international responses to such events or perceived threats to national security, and other actual or potential conflicts or wars, such as the Russia-Ukraine conflict, the Israel-Hamas conflict and ongoing instability in the Middle East, have created many economic and political uncertainties. Any of the foregoing events, or our inability to accurately forecast these events or mitigate the impact of these conditions on our business, could materially adversely affect us.

 

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ITEM 1B. UNRESOLVED STAFF COMMENTS.

None.

 

ITEM 1C. CYBERSECURITY.

In the past year and with the guidance of a qualified third-party, we have made improvements in our cybersecurity program across the Company, and we have developed processes for deterring, detecting, evaluating, and responding to potential cybersecurity incidents. In doing so, we focus on our employees, networks, applications and data with a cybersecurity plan, informed by nationally recognized frameworks.

 

Our third-party advisor has performed cybersecurity risk assessments of our information technology security processes and implemented technologies to lessen risk. Using third party services, we monitor, scan, assess, audit, and remediate identified vulnerabilities across our networks, as appropriate. Furthermore, recognizing that our employees are an essential line of defense in cybersecurity, we require employees to participate in training and testing programs through which we provide education on the risk of potential cybersecurity incidents, methods for identification of such incidents and appropriate responses. Our policies and processes are informed by industry standard practices regarding application security, access management, device protection, network management, and data loss prevention and recovery.

 

Our cybersecurity incident response plan includes retention of external experts for prompt assistance following discovery of any material incident. This cybersecurity incident response plan is part of our ongoing cybersecurity vulnerability management, and we endeavor to maintain appropriate controls to identify, monitor, analyze and address potential cybersecurity incidents, including potential unauthorized access to our networks and applications, along with detection of potential unusual activity within our networks or applications. Any potential cybersecurity incident is immediately reported the Chief Executive Officer and Chief Financial Officer, and the Audit Committee or the full Board, as appropriate.

 

Our Board of Directors provides oversight of risks from cybersecurity threats, in coordination with our management team and the Audit Committee of the Board. Our Board relies on management to bring significant matters impacting the Company to its attention, including with respect to material risks from cybersecurity threats. Our Audit Committee provides an additional layer of cybersecurity oversight and is responsible for discussing cybersecurity concerns (including data privacy risk management) and the steps management has taken to monitor and control such exposures with management.

 

 

There have been no cybersecurity incidents which have materially affected us to date, including our business strategy, results of operations or financial condition. However, any future potential risks from cybersecurity threats, including but not limited to exploitation of vulnerabilities, ransomware, denial of service, supply chain attacks, or other similar threats may materially affect us, including our execution of business strategy, reputation, results of operations and/or financial condition. See Item 1A. Risk Factors — “A significant disruption in, or breach in security of, our information technology systems or data could adversely affect our

business, reputation  and results of operations.”

 

 

ITEM 2. PROPERTIES.

The Company operates facilities in the United States of America and Puerto Rico. The following table provides information relative to our principal facilities as of December 31, 2023:

 

LOCATION		SIZE		DESCRIPTION		OWNED OR LEASED
Akron, OH		100,000 Sq. Ft.		Used for design and manufacturing air handling units and administration		Leased through 2034
Ceiba, Puerto Rico		11,467 Sq. Ft.		Used for manufacturing and precision machining of industrial components.		Leased through 2026.
Cleveland, Ohio		37,000 Sq. Ft.		Used for corporate administrative headquarters and for the operations of our digital marketing and data analytic company.		Owned
Eastlake, Ohio		51,520 Sq. Ft.		Used for the storage and distribution of marine hose and administration		Leased through 2027.
Longmont, Colorado		2,400 Sq. Ft.		Used for manufacturing and precision machining of industrial components.		Leased, through 2024.
Ocala, Florida		27,000 Sq. Ft.		Used for the storage of hydraulic hose.		Leased, through 2024.
Davie, Florida		7,010 Sq. Ft.		Used for the manufacturing, storage and distribution of fuel pump products and administration.		Leased, through 2025.
Painesville, Ohio		50,000 Sq. Ft.		Used for manufacturing flexible metal hose and administration.		Leased, through 2026.
Phoenix, Arizona		67,000 Sq. Ft.		Used for manufacturing and precision machining of aerospace components.		Leased through 2026.
Worcester, Massachusetts		56,706 Sq. Ft.		Used for manufacturing of highly engineered forgings.		Leased through 2033.
Greenville, OH		53,135 Sq. Ft.		Used for manufacturing and precision machining of industrial components.		Leased through 2028.

 

The Company's headquarters and executive offices are located in Cleveland, Ohio. The Company's Industrial and Transportation Products segment utilizes the Phoenix, Arizona; Worcester, Massachusetts; Longmont, Colorado; Ceiba, Puerto Rico; Painesville, Ohio; Eastlake, Ohio; Greenville, Ohio: Ocala, Florida; and Davie, Florida properties. The Company’s Commercial Air Handling Equipment segment utilizes the Akron, Ohio property.

 

We consider our facilities to be well-maintained and in good operating condition. We believe the quality and production capacity of our facilities is sufficient to maintain our competitive position for the foreseeable future and accommodate our anticipated growth in production.

 

ITEM 3. LEGAL PROCEEDINGS. 

At the time of filing this Annual Report on Form 10-K, there were no material legal proceedings pending or threatened against the Company.

 

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ITEM 4. MINE SAFETY DISCLOSURES. 

 

Not Applicable.

 

EXECUTIVE OFFICERS OF THE REGISTRANT. *

The following is a list of the executive officers of the Company. The executive officers are elected each year and serve at the pleasure of the Board of Directors.

 

Mr. Brian E. Powers was elected to the Company’s Board of Directors in February 2014. He was appointed Chief Executive Officer on September 1, 2016.

 

Mr. Jeffrey J. Salay became Chief Financial Officer on May 1, 2023. Prior to joining the Company, Mr. Salay served as Chief Accounting Officer for Diebold Nixdorf, Incorporated (NYSE: DBD), from July 2022 to May 2023 and served as Corporate Controller from November 2020 to July 2022. Prior to that, he was Senior Assurance Manager with Ernst & Young LLP from December 2014 to November 2020. Mr. Salay began his career with KPMG LLP and is a licensed Certified Public Accountant in Ohio.

 

 

OFFICE	OFFICER	AGE
Chief Executive Officer	Brian E. Powers	61
Chief Financial Officer	Jeffrey J. Salay	39

 

●*

The description of Executive Officers called for in this Item is included pursuant to the instructions to Item 401 of Regulation S-K.

 

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PART II

 

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. 

 

a) MARKET INFORMATION

The Company’s Class A Common Shares are traded on the OTC Pink Open Market under the symbol “CRAWA”. There is no market for the Company’s Class B Common Shares.

 

The following table sets forth the per share range of high and low bids for the Company’s Class A Common Shares for the periods indicated, as reported by the OTC Pink Open Market. These prices reflect inter-dealer prices without retail mark-up, mark-down or commissions and may not represent actual transactions. Trading on the OTC Pink Open Market is limited and the prices quoted by brokers are not a reliable indication of the value of our Class A Common Shares.

 

		Fiscal year ended								Fiscal year ended
		December 31, 2023								December 31, 2022
		HIGH				LOW				HIGH				LOW
First Quarter		$	19.50			$	13.56			$	32.00			$	26.35
Second Quarter			25.82				16.50				30.00				21.01
Third Quarter			34.97				23.13				22.50				17.73
Fourth Quarter			34.24				26.00				19.88				12.25

 

b) HOLDERS 

As of March 4, 2024, there were approximately 140 shareholders of record of the Company's outstanding Class A Common Shares and 7 holders of record of the Company's outstanding Class B Common Shares. 

 

c) ISSUER PURCHASES OF EQUITY SECURITIES
The following table discloses shares repurchased by the Company during the quarter ended December 31, 2023.

 

 

Period		Total number of shares purchased				Average price paid per share				Total number of shares purchased as part of publicly announced program				Maximum number of shares that may yet be purchased under the program (1)
October 1 to October 31, 2023			-				-				-				-
November 1 to November 30, 2023			-				-				-				-
December 1 to December 31, 2023			-				-				-				300,000
Total			-				-				-				300,000

 

1.

On December 15, 2023, the Company announced a share repurchase program of up to 300,000 of the Company’s Class A and/or Class B common shares. Shares may be repurchased from time to time by the Company through open-market transactions, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing share prices, and other considerations. The authorization may be suspended or discontinued at any time and does not obligate the Company to acquire any amount of shares. The authorization has no expiration date.

 

 

ITEM 6.[RESERVED]

 

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

Items Affecting the Comparability of our Financial Results

The Company purchased substantially all of the operating assets of Reverso Pumps, Inc, (“Reverso Pumps”) and Separ of the Americas, LLC, (“Separ America”), both located in Davie, Florida on January 10, 2022.

 

The Company purchased substantially all of the operating assets of KMC Corp. dba Knitting Machinery Corp. (“Knitting Machinery”) located in Cleveland, Ohio and Greenville, Ohio on May 1, 2022.

 

Accordingly, in light of the timing of these transactions, the Company’s results for the year ended December 31, 2023 include the added results of operations of Reverso Pumps, Separ America and Knitting Machinery in the Industrial and Transportation Products segment. Conversely, our results for the year ended December 31, 2022 do not include the full twelve months results of operations of Reverso Pumps, Separ America and Knitting Machinery in the Industrial and Transportation Products segment.

 

Reportable Segment Information

Refer to Part 1, Item 1. Business for descriptions of our business segments.

 

Results of Operations

 

Year Ended December 31, 2023 Compared with Year ended December 31, 2022

Sales for the year ended December 31, 2023 increased to $143.9 million, an increase of $16.1 million or 12.6% from sales of $127.8 million during the prior year. The increase in sales for the year ended December 31, 2023 was predominantly attributable to organic growth mechanisms, including a strategic implementation of price adjustments, predominantly within the low single-digit percentage range, and an escalation in sales volume across both of the Company's reportable segments. Further insights into the performance of each segment are provided in the detailed discussions that follow.

 

Cost of sales for the year ended December 31, 2023 were $106.2 million compared to $100.7 million for the prior year, an increase of $5.5 million or 5.5%, which is directly attributable to the increase in sales. Gross margin was 26.2% in the current year compared to 21.2% for the prior year. The 500 basis point increase can be primarily attributed to the expanded sales base, which facilitated more efficient absorption of fixed costs, alongside the normalization of escalated raw material and logistics expenses driven by inflationary pressures. Additionally, a series of company efficiency initiatives contributed to this improvement. Throughout the fiscal year 2023, the company effectively navigated the inflationary challenges that peaked in the prior year. The strategy of passing on a portion of the increased costs to customers, coupled with rigorous direct cost management programs, played a crucial role in bolstering our financial performance. These measures not only helped in mitigating the impact of inflation but also resulted in notable cost savings.

 

Selling, general and administrative expenses (SG&A) for the year ended December 31, 2023 were $19.7 million, compared to $18.5 million for the prior year. This marginal increase in SG&A expenses, which remained stable as a percentage of our total sales, is primarily reflective of inflationary labor costs as well as strategic investments aimed at managing and supporting the company's growth.

 

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Interest charges for the year ended December 31, 2023 were approximately $1.3 million compared to $1.1 million in the prior year. Total debt outstanding decreased, thus the comparability in interest expense was directly attributable to interest rate increases, which align with the macroeconomic environment. Average total debt (including notes) and average interest rates for the year ended December 31, 2023 were $17.4 million and 6.8%, respectively, compared to $27.3 million and 3.8%, respectively, for the prior year.

 

Gain on investment for the year ended December 31, 2023 was immaterial, compared to a loss of $0.9 million in the prior year. The change is the result of market price changes in the Company's investments in marketable securities. There have been no significant changes in the Company's investment strategy or portfolio as compared to the prior year.

 

Income tax expense in the year ended December 31, 2023 was $3.9 million compared to $1.2 million in the prior year. Tax expense was higher in 2023 compared to the prior year driven primarily by higher pre-tax income.

 

Net income for the year ended December 31, 2023 was $13.3 million or $3.77 per diluted share as compared to net income of $6.6 million or $1.89 per diluted share for the prior year.  

 

Commercial Air Handling Segment

 

Sales in the Commercial Air Handling Equipment segment for the year ended December 31, 2023 increased to $58.4 million, an increase of approximately $10.7 million, or 22.5%, from sales of $47.6 million during the prior year. The primary driver behind this increase was a heightened demand for clean air solutions, a trend accelerated by the post-COVID-19 pandemic landscape. As pandemic-related restrictions were progressively lifted, it enabled our teams to gain on-site access essential for completing installations, particularly for key clients in the hospital and university sectors. Additionally, our company capitalized on the economic upturn and is effectively managing a strong backlog of orders, which signifies not only the current demand but also positions us well for sustained growth in the foreseeable future.

 

Segment operating profit in the Commercial Air Handling Equipment segment for the year ended December 31, 2023 was $15.4 million, or 26.3%, compared to $6.7 million, or 14.0% for the prior year, an increase of $8.7 million or 1,230 basis points. This improvement in both operating profit and margin can be primarily attributed to the increased revenue base, which facilitated more efficient absorption of fixed costs. Additionally, the segment benefited from reduced input costs, reflecting the broader economic stabilization and recovery trends in 2023. A notable factor contributing to this success has been the implementation of various efficiency, cost management, and continuous improvement initiatives within our manufacturing processes. These strategic measures have effectively streamlined operations and enhanced profitability. Moreover, the segment's Selling, General, and Administrative (SG&A) costs have remained consistent compared to the previous year. This consistency in SG&A expenses, alongside the improved revenue and operational efficiencies, underscores our focused approach towards sustainable growth and profitability in this segment.

 

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Industrial and Transportation Products Segment

 

Sales in the Industrial and Transportation Products segment for the year ended December 31, 2023 increased to $85.5 million, an increase of approximately $5.4 million or 6.7%, from sales of $80.1 million during the prior year. The increase in sales for the year ended December 31, 2023 was largely attributed to a broad-based upswing across our diversified portfolio, aligning with the economic recovery and resurgence in various industries post-pandemic. A key highlight of this performance was the growth in our aerospace-related product lines. Sales in machined aerospace parts surged by $5.3 million, while our forged aerospace products saw an increase of approximately $1.2 million. These gains are indicative of the revitalization of the travel and aerospace industries, as global travel restrictions eased and demand for air travel rebounded strongly. Additionally, our machined defense parts product line witnessed a significant increase in sales, amounting to about $2.1 million. This reflects a return to pre-pandemic sales volumes, underscoring our capacity to meet the robust and evolving demands of the defense sector. However, these positive developments were partially offset by declines in other areas. Our digital marketing entity experienced a decrease of approximately $1.5 million, reflecting the dynamic and competitive nature of the digital marketing landscape. Similarly, sales of boating products dipped by $1.5 million, following a period of heightened demand during the pandemic. The sale of industrial hose also saw a slight decrease of around $0.2 million. Overall, the segment's performance in 2023 is a testament to our strategic agility and ability to capitalize on market opportunities, particularly in the aerospace and defense sectors, while navigating challenges in other areas. This balanced approach has positioned us well for continued growth and resilience in a rapidly evolving global market.

 

Segment operating profit in the Industrial and Transportation Products segment for the year ended December 31, 2023 was $7.6 million, or 8.9%, compared to $6.0 million, or 7.4%, for the prior year, an increase of $1.6 million or 140 basis points. This enhancement in both operating profit and margin was largely driven by the increased revenue stemming from our aerospace and defense sales, which rose notably due to the recovery in the aerospace sector, as detailed in our sales analysis. The gross margin within this segment improved largely due to the efficient absorption of fixed costs. This was made possible by the growth in sales volume, especially in areas where we experienced a resurgence post-pandemic. Additionally, we successfully managed to pass through certain increased costs attributable to inflation, while simultaneously implementing various efficiency initiatives. These strategic measures contributed to bolstering our financial performance in this challenging economic environment. The segment's Selling, General, and Administrative (SG&A) costs have risen in line with the sales increase. This indicates that while we have strategically increased our investment in SG&A to support growth, it has been proportional and in sync with our expanding revenue streams. This balanced approach underscores our commitment to maintaining a sustainable growth trajectory while effectively managing operational costs.

 

 

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Liquidity and Capital Resources

The Company’s credit agreement, by and between the Company and JPMorgan Chase Bank, N.A. as lender (as amended, the “Credit Agreement”), provides for a revolving credit facility of up to $30.0 million. At December 31, 2023 there was approximately $24.9 million of borrowing availability, which has increased in recent quarters as the Company generated cash, and used that cash to pay down debt. 

 

Operating Activities. The dynamics of cash flows from operating activities are subject to variability, influenced by the oscillating demands of working capital and the scheduling of payment cycles. Net cash provided by operating activities was $18.8 million for the year ended December 31, 2023, compared to $8.0 million net cash provided by operating activities for the prior year. The improvement in cash flow from operations is most directly attributable to the increase in net income. Despite its growing sales base, the Company had an inventory balance $2.4 million lower for the year ended December 31, 2023 compared to the prior year. Partially offsetting these improvements was a use of $2.8 million on accounts payable for the year ended December 31, 2023 compared to proceeds of $2.0 million in the prior year. The Company maintains strict oversight of disbursements, and this change is largely the result of invoice timing. Concurrently, the Company's focus on enhancing the efficiency of its receivables process yielded a notable decrease in the accounts receivable balance by $2.2 million for the year ended December 31, 2023, despite the growth in sales. This decrease is testament to our strategic emphasis on expediting collections, thereby strengthening our liquidity position.

 

Investing Activities. Cash used in investing activities for the year ended December 31, 2023 was $2.0 million, compared to cash used in investing activities of $5.1 million in the prior year. Cash used in investing activities for the year ended December 31, 2023 was for capital expenditures in the normal course of business. Cash used in investing activities for the prior year was for the acquisitions of Knitting Machinery Corporation, Reverso Pumps and Separ America in the Industrial and Transportation Products segment as well as capital expenditures in the normal course of business.

 

Financing Activities. Cash used in financing activities was approximately $16.4 million for the year ended December 31, 2023, compared to cash used in financing activities of $3.2 million in the prior year. Beginning in the second half of 2022, the Company has utilized cash flow from operations to pay down its total debt. In the first half of the prior year period, the Company borrowed on its revolving credit facility to fund the acquisitions noted above.

 

The Company is actively managing its business to generate cash flow. We believe that cash and availability on our revolving credit facility to be sufficient to fund working capital needs and service principal and interest payments due related to the bank debt and notes payable for at least the next 12 months. Based on a combination of increased profitability and decreased debt levels, the Company believes it is well positioned to support ongoing operations as well as growth initiatives. Notwithstanding the Company's expectations, if the Company's operating results decrease as the result of pressures on the business due to, for example, supply chain interruptions or delays, increases in material, freight or labor costs, inflationary pressures, currency or interest rate fluctuations, regulatory issues, a downturn in general economic conditions, or the Company's failure to execute its business plans, the Company may require additional financing, or may be unable to comply with its obligations under the credit facility, and its lenders could demand repayment of any amounts outstanding under the Company’s credit facility. See Note 8 and 9 to the consolidated financial statements for further information on the Company's total debt.

 

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Off-Balance Sheet Arrangements

From time to time, the Company enters into performance and payment bonds in the ordinary course of business in connection with commercial air handling contracts. These bonds are secured by certain assets of the Company by the surety until the Company’s completion of the requirements of the commercial air handling contract. At December 31, 2023, the Company has secured performance and payment bonds in the amount of $8.1 million, which is consistent with the prior year, and represents surety on completion of the requirements of certain commercial air handling contracts. The Company has no other off-balance sheet arrangements (as defined in Regulation S-K Item 303 paragraph (a)(4)(ii)) that have or are reasonably likely to have a material current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditure or capital resources.

 

Critical Accounting Policies and Estimates

 

Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions which affect amounts reported in our consolidated financial statements. On an ongoing basis, we evaluate the accounting policies and estimates that are used to prepare financial statements. Management has made their best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. We do not believe that there is great likelihood that materially different amounts would be reported under different conditions or using different assumptions related to the accounting policies described below. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates.

 

Certain accounting policies that require significant management estimates and are deemed critical to our results of operations or financial position are discussed below. On a regular basis, critical accounting policies are reviewed with the Audit Committee of the Board of Directors.

 

Revenue Recognition:

We recognize revenue with respect to customer orders when our obligations under the contract terms are satisfied and control of the product transfers to the customer, typically upon shipment. Revenue from certain contracts in the Commercial Air Handling Equipment segment is accounted for over time, when products are manufactured or services are performed, as control transfers under these arrangements. We follow a cost-based input method, since there is no objective output measure that would fairly depict the transfer of control over the life of the performance obligation. Progress on the performance obligation is measured by the proportion of actual costs incurred to the total costs expected to complete the contract. Costs included in the measure of progress include direct labor and third-party. This cost-based method of revenue recognition requires the Company to make estimates of costs to complete its projects on an ongoing basis. Significant judgment is required to evaluate assumptions related to these estimates. The effect of revisions to estimates related to the transaction price or costs to complete a project are recorded on a cumulative catch-up basis. Certain contracts may be terminated by the customer; however, in the event of termination, most contracts require payment for services rendered through the date of termination.

 

Allowance for Obsolete and Slow-Moving Inventory:

Inventories are valued using the first-in, first-out (“FIFO”) method; stated at the lower of cost or net realizable value; and are reduced by an allowance for obsolete and slow-moving inventories. The allowance is estimated based on management’s review of inventories on hand with minimal sales activity, which is compared to estimated future usage and sales. Inventories identified by management as slow-moving or obsolete are reserved for based on estimated selling prices less disposal costs. Though we consider these allowances adequate and proper, changes in economic conditions in specific markets in which we operate could have a material effect on allowances required.

 

Business Combinations:

Business combinations are accounted for using the purchase method of accounting under ASC 805, “Business Combinations.” This method requires the Company to record assets and liabilities of the businesses acquired at their estimated fair values as of the acquisition date. Any excess of the cost of the acquisition over the fair value of the net assets acquired is recorded as Goodwill. Determining the fair value requires management to make estimates and assumptions including discount rates, rates of return on assets, and long-term sales growth rates.

 

Goodwill and Indefinite Lived Intangible Assets:

As referenced by ASC 350 “Intangibles - Goodwill and other” (“ASC 350”), management performs its annual test for Goodwill and intangible assets at least annually or more frequently, if impairment indicators arise at the reporting unit level. Our reporting units have been identified at the individual company component level, with each individual subsidiary operating company constituting its own reporting unit. During 2022, management performed quantitative testing for the CAD Enterprises and Global-Tek reporting units. In 2023, and because of the Company’s strong performance, a thorough qualitative analysis was performed, which did not indicate that quantitative testing was necessary in any reporting units other than CAD Enterprises.

 

Our Goodwill impairment analysis utilizes a qualitative approach that compares the carrying amount of the reporting unit to its estimated fair value. To the extent that the qualitative approach indicates that it is more likely than not that the carrying amount is less than the reporting unit's fair value, we apply a quantitative approach as a secondary step. In applying the quantitative approach, we use an income approach to estimate the fair value of the reporting unit. The income approach uses a number of factors, including future business plans and actual and forecasted operating results. The significant assumptions employed under this method include discount rates; revenue growth rates, including assumed terminal growth rates; and operating margins used to project future cash flows for the operating company. The discount rates utilized reflect market-based estimates of capital costs and discount rates adjusted for management’s assessment of a market participant’s view with respect to other risks associated with the projected cash flows of the individual company. Our estimates are based upon assumptions we believe to be reasonable, but which by nature are uncertain and unpredictable. We believe we incorporate reasonable assumptions into our analysis of Goodwill impairment testing for a reporting unit, such that actual experience would need to be materially out of the range of expected assumptions in order for an impairment to remain undetected.

 

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In conducting our annual Goodwill impairment analyses at December 31, 2023 and 2022, Goodwill for CAD Enterprises was $7.3 million.

 

In our 2022 qualitative assessment of CAD Enterprises, we noted a decline in revenue from $30.1 million in 2019 to $18.9 million in 2020, $18.3 million in 2021 and $15.5 million in 2022 and a decline in after-tax income margin from 5.8% in 2019 to -4.6% in 2020, -0.5% in 2021, and -3.4% in 2022 and thus determined to conduct a quantitative assessment of CAD Enterprises. The quantitative assessment of CAD Enterprises confirmed that the estimated fair value exceeded carrying value by 12 percent, and thus no impairment existed at December 31, 2022. The key assumptions used to estimate fair value included discount rates; revenue growth rates, including assumed terminal growth rates; and after-tax income margins used to project future cash flows for CAD Enterprises. The discount rate used to estimate fair value was 10% and was based on estimates of capital costs and management’s assessment of a market participant’s view with respect to other risks associated with the projected cash flows for CAD Enterprises. Our revenue growth rate for the 9-year period in the discounted cash flow model was 10.2% per year, which reflects management’s assessment of estimated future orders for CAD Enterprises based in part on a Long-Term-Agreement (“LTA”) with the company’s largest customer, a new $7.5 million incremental purchase order with this customer, our previous revenue history including actual revenues of $30.1 million in 2019 before the onset of the COVID-19 pandemic, and a continued business rebound in the aerospace industry. The assumed terminal growth rate for CAD Enterprises was 3% based on management’s assessment of long-term growth rates for the Aerospace industry. The after-tax income margins used to project future margins for the company were based on the historical margins for CAD Enterprises prior to the COVID-19 pandemic.

 

During 2023, revenue at CAD Enterprises increased from $15.5 million in 2022 to $20.9 million. The revenue growth was 35% and was consistent with the quantitative modeling done in 2022. However despite the strong revenue growth, CAD did not meet the profitability projections used in the prior year's goodwill analysis. Accordingly, we noted a triggering event and completed a Step 1 quantitative analysis as of December 31, 2023. The quantitative assessment of CAD Enterprises confirmed that the estimated fair value exceeded carrying value by 35 percent, and thus no impairment existed at December 31, 2023. The key assumptions used to estimate fair value included discount rates; revenue growth rates, including assumed terminal growth rates; and after-tax income margins used to project future cash flows for CAD Enterprises. The discount rate used to estimate fair value was 15% and was based on estimates of capital costs and management’s assessment of a market participant’s view with respect to other risks associated with the projected cash flows for CAD Enterprises. The increase from the prior year reflects the incremental company specific risks related to the missed profitability projections in 2023. Our revenue growth rate for the 7-year period in the discounted cash flow model was 7.7% per year, which reflects management’s assessment of estimated future orders for CAD Enterprises based in part on a Long-Term-Agreement (“LTA”) with the company’s largest customer, inclusive of an expected increase in volume, our previous revenue history including actual revenues exceeding $30 million prior to the recent inflationary environment, and growth in the aerospace industry stemming from post-pandemic travel rebound, geopolitical conflicts and private space exploration. The assumed terminal growth rate for CAD Enterprises was 3% based on management’s assessment of long-term growth rates for the Aerospace industry. The after-tax income margins used to project future margins for the company reflect that most of CAD's non-material costs are fixed, and as revenue grows, much of the growth will fall-through to the bottom line.

 

Our estimates are based upon assumptions we believe to be reasonable, but which by nature are uncertain and unpredictable. Potential events and circumstances including global conflicts, materials shortages, inability to increase prices to keep pace with expenses, onset of a global pandemic, departure of key employees and loss of a key customer could negatively affect the key assumptions used for the recent fair value test and are similar to the risk factors noted in Item 1A, Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

 

In conducting our 2022 annual Goodwill impairment analysis, Goodwill for Global-Tek Manufacturing and Global-Tek Colorado at December 31, 2022 was $1.9 million. In our qualitative assessment of Global-Tek Manufacturing and Global-Tek Colorado, we noted a decline in revenue from $9.2 million in 2021 to $6.5 million in 2022 and a decline in after-tax income margin from 17.3% in 2021 to -3.3% in 2022 and thus determined to conduct a quantitative assessment of Global-Tek Manufacturing and Global-Tek Colorado. The quantitative assessment of Global-Tek Manufacturing and Global-Tek Colorado confirmed that the estimated fair value exceeded carrying value by 23.3%, and thus no impairment existed at December 31, 2022. The key assumptions used to estimate fair value included discount rates; revenue growth rates, including assumed terminal growth rates; and after-tax income margins used to project future cash flows for Global-Tek Manufacturing and Global-Tek Colorado. The discount rate used to estimate fair value was 10% and was based on estimates of capital costs and management’s assessment of a market participant’s view with respect to other risks associated with the projected cash flows for Global-Tek Manufacturing and Global-Tek Colorado. Our revenue growth rate for the 9-year period in the discounted cash flow model was 6.5% per year, which reflects management’s assessment of estimated future orders for Global-Tek Manufacturing and Global-Tek Colorado based on our previous revenue history including actual revenues of $9.2 million in 10 months of operations after the acquisition in 2021 before the untimely passing of the General Manager. The assumed terminal growth rate for Global-Tek Manufacturing and Global-Tek Colorado was 3% based on management’s assessment of long-term growth rates for the Aerospace and Defense industries. The after-tax income margins used to project future margins for the company were based on the historical margins for Global-Tek Manufacturing and Global-Tek Colorado prior to the untimely passing of the General Manager. In 2021, Global-Tek Manufacturing and Global-Tek Colorado earned an debt-free after-tax income margin of 16.4%. The discounted cash flow model used to estimate fair value assumes an after-tax income margin of 6.2% in 2027, or year 5 of the forecast period and expanding margins to 7.8% in the terminal year. This is based on management’s assessment of our ability to grow SG&A expenses at a slower rate than revenues as the company achieves more scale. Our estimates are based upon assumptions we believe to be reasonable, but which by nature are uncertain and unpredictable.

 

During 2023, revenue at Global-Tek increased from $6.5 million in 2022 to $8.6 million. The revenue growth was 32% and exceeded the quantitative modeling done in 2022. Aspects of the Global-Tek business underlying revenue also remain favorable, which were key factors in the qualitative analysis which deemed quantitative testing not necessary. Potential events and circumstances including global conflicts, materials shortages, inability to increase prices to keep pace with expenses, onset of a global pandemic, departure of key employees and loss of a key customer could negatively affect the key assumptions used for the recent fair value test and are similar to the risk factors noted in Item 1A, Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

 

 

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Income Taxes:

In accordance with ASC 740, “Income Taxes” (“ASC 740”), we account for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and the tax bases of assets and liabilities and are measured using the currently enacted tax rates. Specifically, we measure gross deferred tax assets for deductible temporary differences and carryforwards, such as operating losses and tax credits, using the applicable enacted tax rates and apply the more likely than not measurement criterion. Further, at each interim reporting period, we estimate an effective income tax rate that is expected to be applicable for the full year. Significant judgment is involved regarding the application of income tax laws and regulations and when projecting the jurisdictional mix of income. Additionally, interpretation of tax laws, court decisions or other guidance provided by taxing authorities influences our estimate of the effective income tax rates. As a result, our actual annual effective income tax rates and related income tax liabilities may differ materially from our interim estimated effective tax rates and related income tax liabilities. Any resulting differences are recorded in the period they become known.

 

Impact of Inflation:

Inflationary economic conditions during the past few years have increased the Company’s costs of producing its products. While these inflationary conditions stabilized during 2023, the Company's costs have remained elevated, and may increase further if inflationary economic conditions persist. The Company’s products are manufactured using various metals and other commodity-based materials including steel, aluminum, rubber and silicone. Freight and labor costs also are significant elements of the Company’s production costs. Inflationary economic conditions have elevated these various costs. If the Company is unable to continue mitigating cost increases through customer pricing actions, alternative supply arrangements or other cost reduction initiatives, the Company's profitability may be adversely affected.

 

Forward-Looking Statements

The foregoing discussion includes forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements made regarding the Company’s future results. Generally, these statements can be identified by the use of words such as “guidance,” “outlook,” “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements, or other statements made by the Company, are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) shortages in supply or increased costs of necessary products, components or raw materials from the Company’s suppliers; (b) availability shortages or increased costs of freight and labor for the Company and/or its suppliers; (c) actions that governments, businesses and individuals take in response to public health crises, such as the COVID-19 pandemic, including mandatory business closures and restrictions on onsite commercial interactions; (d) conditions in the global and regional economies and economic activity, including slow economic growth or recession, inflation, currency and credit market volatility, reduced capital expenditures and changes in government trade, fiscal, tax and monetary policies; (e) adverse effects from evolving geopolitical conditions, such as the military conflicts in Ukraine and Israel; (f) the Company's ability to effectively integrate acquisitions, and manage the larger operations of the combined businesses, (g) the Company's dependence upon a limited number of customers and the aerospace industry, (h) the highly competitive industries in which the Company operates, which includes several competitors with greater financial resources and larger sales organizations, (i) the Company's ability to capitalize on market opportunities in certain sectors, (j) the Company's ability to obtain cost effective financing and (k) the Company's ability to satisfy obligations under its financing arrangements, and the other risks described in “Item 1A. Risk Factors” in our Annual Report Form 10-K and the Company’s subsequent filings with the SEC.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

This item is not applicable to the Company as a smaller reporting company.

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. 

 

The following pages contain the Financial Statements and Supplementary Data as specified for Item 8 of Part II of Form 10-K.

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Shareholders and Board of Directors

Crawford United Corporation

Cleveland, Ohio

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of Crawford United Corporation (the "Company") as of December 31, 2023 and 2022, and the related consolidated statements of income, stockholders' equity, and cash flows, for the years then ended, and the related notes and schedules (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters

 

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

Goodwill Impairment Assessment

 

As described in Note 5 to the consolidated financial statements, the Company’s consolidated goodwill balance was approximately $16.5 million and $16.3 million at December 31, 2023 and 2022, respectively, which is allocated to the Company’s reporting units. Goodwill is tested for impairment at least annually at the reporting unit level. The determination of the fair value requires management to make significant estimates and assumptions related to forecasts of future revenues and operating margins and discount rates. As disclosed by management, changes in these assumptions could have a significant impact on either the fair value of the reporting units, the amount of any goodwill impairment charge, or both.

 

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We identified the goodwill impairment assessment as a critical audit matter. The primary procedures we performed to address this critical audit matter included: a) Testing the effectiveness of controls related to management’s goodwill impairment tests, including controls over the determination of fair value; b) Testing management’s process for determining the fair value; c) Evaluating whether the assumptions used were reasonable by considering past performance and whether such assumptions were consistent with evidence obtained in other areas of the audit.

 

/s/Meaden & Moore, Ltd.

 

We are uncertain as to the year we began servicing consecutively as the auditor of the Company’s financial statements; however, we are aware that we have been the Company’s auditor consecutively since at least 1979.

 

Cleveland, Ohio

March 4, 2024

 

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CRAWFORD UNITED CORPORATION

CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

		December 31,
		2023				2022
CURRENT ASSETS:
Cash and cash equivalents		$	1,647,175			$	1,247,627
Accounts receivable less allowance for doubtful accounts			19,671,833				21,884,807
Contract assets			4,822,347				3,284,301
Inventories less allowance for obsolete inventory			17,672,622				20,176,142
Investments			665,301				657,971
Prepaid expenses and other current assets			1,303,780				1,522,516
Total Current Assets			45,783,058				48,773,364
Property, plant and equipment, net			14,686,190				15,213,443
Operating right of use asset, net			8,356,903				9,524,280
OTHER ASSETS:
Goodwill			16,453,049				16,231,938
Intangibles, net of accumulated amortization			8,252,600				9,492,560
Other non-current assets			107,798				362,489
Total Non-Current Assets			24,813,447				26,086,987
Total Assets		$	93,639,598			$	99,598,074

 

LIABILITIES AND STOCKHOLDERS' EQUITY 

 

		December 31,
		2023				2022
CURRENT LIABILITIES:
Notes payable – current		$	824,226			$	1,303,972
Bank debt – current			-				222,222
Operating lease liabilities - current			1,714,174				1,705,224
Accounts payable			11,168,308				14,017,973
Unearned revenue			5,596,706				4,354,868
Accrued income taxes			539,876				1,239,289
Accrued expenses			3,292,787				3,224,188
Total Current Liabilities			23,136,077				26,067,736
LONG-TERM LIABILITIES:
Notes payable			470,209				1,846,405
Bank debt			5,096,672				19,224,318
Operating lease liabilities - noncurrent			6,901,043				8,060,152
Deferred income taxes			310,250				1,384,558
Total Long-Term Liabilities			12,778,174				30,515,433
STOCKHOLDERS' EQUITY
Class A common shares - 10,000,000 shares authorized, 2,832,966 issued at December 31, 2023 and 2,791,449 issued at December 31, 2022			8,878,986				7,351,563
Class B common shares - 2,500,000 shares authorized, 914,283 shares issued at December 31, 2023 and December 31, 2022			1,465,522				1,465,522
Contributed capital			1,741,901				1,741,901
Treasury shares			(2,237,026	)			(2,125,252	)
Class A common shares – 54,074 shares held at December 31, 2023 and 47,412 shares held at December 31, 2022
Class B common shares – 182,435 shares held at December 31, 2023 and December 31, 2022
Retained earnings			47,875,964				34,581,171
Total Stockholders' Equity			57,725,347				43,014,905
Total Liabilities and Stockholders' Equity		$	93,639,598			$	99,598,074

 

See accompanying notes to consolidated financial statements.

 

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CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

 

		Years Ended
		December 31, 2023				December 31, 2022
Total Sales		$	143,885,934			$	127,754,927
Cost of Sales			106,239,852				100,722,146
Gross Profit			37,646,082				27,032,781
Operating Expenses:
Selling, general and administrative expenses			19,713,611				18,499,309
Operating Income			17,932,471				8,533,472
Other (Income) and Expenses:
Interest charges			1,255,984				1,138,224
(Gain) loss on investments			(7,330	)			860,273
Other (income) expense, net			(480,331	)			(1,197,218	)
Total Other (Income) and Expenses			768,323				801,279
Income before Provision for Income Taxes			17,164,148				7,732,194
Income tax expense			3,869,355				1,170,791
Net Income		$	13,294,793			$	6,561,403
Net Income Per Common Share - Basic		$	3.79			$	1.89
Net Income Per Common Share - Diluted		$	3.77			$	1.89
Weighted Average Shares of Common Stock Outstanding
Basic			3,507,883				3,462,868
Diluted			3,526,836				3,462,868

 

See accompanying notes to consolidated financial statements

 

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CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 

 

		COMMON SHARES -
		NO PAR VALUE
										CONTRIBUTED				TREASURY				RETAINED
		CLASS A				CLASS B				CAPITAL				SHARES				EARNINGS				TOTAL
Balance at December 31, 2021		$	5,393,823			$	1,465,522			$	1,741,901			$	(1,981,113	)		$	28,019,768			$	34,639,901
Stock Awards to Directors and Officers			957,728				-				-				-				-				957,728
Acquisition			1,000,012				-				-				-				-				1,000,012
Share repurchase			-				-				-				(144,139	)			-				(144,139	)
Net income			-				-				-				-				6,561,403				6,561,403
Balance at December 31, 2022		$	7,351,563			$	1,465,522			$	1,741,901			$	(2,125,252	)		$	34,581,171			$	43,014,905
Stock Awards to Directors and Officers			1,377,423				-				-				-				-				1,377,423
Stock issuance (see note 6)			150,000				-				-				-				-				150,000
Share repurchase			-				-				-				(111,774	)			-				(111,774	)
Net income			-				-				-				-				13,294,793				13,294,793
Balance at December 31, 2023		$	8,878,986			$	1,465,522			$	1,741,901			$	(2,237,026	)		$	47,875,964			$	57,725,347

 

 

		COMMON SHARES																COMMON SHARES
		ISSUED								TREASURY SHARES								OUTSTANDING
		CLASS A				CLASS B				CLASS A				CLASS B				CLASS A				CLASS B
Balance at December 31, 2021			2,720,787				914,283				41,844				182,435				2,678,943				731,848
Stock Awards to Directors and Officers			32,200				-				-				-				32,200				-
Acquisition			38,462				-				-				-				38,462				-
Share repurchase			-				-				5,568				-				(5,568	)			-
Balance at December 31, 2022			2,791,449				914,283				47,412				182,435				2,744,037				731,848
Stock Awards to Directors and Officers			34,700				-				-				-				34,700				-
Stock issuance (see note 6)			7,317				-				-				-				7,317				-
Stock forfeit			(500	)			-				-				-				(500	)			-
Share repurchase			-				-				6,662				-				(6,662	)			-
Balance at December 31, 2023			2,832,966				914,283				54,074				182,435				2,778,892				731,848

 

See accompanying notes to consolidated financial statements

 

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CRAWFORD UNITED CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOW

 

 

		Years Ended December 31,
		2023				2022
Cash Flows from Operating Activities
Net Income		$	13,294,793			$	6,561,403
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			3,921,740				3,750,805
Loss (Gain) on investments in equity securities			(7,330	)			860,273
Reduction in carrying amount of RoU assets			1,720,844				1,706,810
Loss (Gain) on disposal of assets			(3,988	)			16,930
Write off of contingent liability			-				(750,000	)
Share-based compensation expense			1,377,423				957,728
Deferred income taxes			(1,074,308	)			(1,872,770	)
Changes in assets and liabilities:
Accounts receivable			2,212,974				(2,745,949	)
Inventories			2,355,929				(2,772,375	)
Contract assets			(1,538,046	)			(1,173,244	)
Prepaid expenses & other current assets			218,736				(373,139	)
Right of use assets			(457,317	)			(2,232,314	)
Other noncurrent assets			254,691				(265,166	)
Accounts payable			(2,849,665	)			1,981,556
Lease liabilities			(1,150,159	)			538,067
Accrued income taxes			(699,413	)			2,555,884
Other current liabilities			(27,551	)			204,050
Unearned revenue			1,241,838				1,097,850
Total adjustments			5,496,398				1,484,996
Net Cash Provided by Operating Activities			18,791,191				8,046,399
Cash Flows from Investing Activities
Cash paid for business acquisitions			-				(4,331,739	)
Capital expenditures			(2,032,773	)			(742,828	)
Net Cash Used in Investing Activities			(2,032,773	)			(5,074,567	)
Cash Flows from Financing Activities
Payments on related party notes			(1,855,942	)			(4,071,885	)
Payments on bank debt			(21,667,362	)			(7,120,834	)
Borrowings on bank debt			7,276,208				8,868,238
Payments on contingent liability			-				(750,000	)
Share repurchase			(111,774	)			(144,139	)
Net Cash Used in Financing Activities			(16,358,870	)			(3,218,620	)
Net Increase (Decrease) in cash and cash equivalents			399,548				(246,788	)
Cash and cash equivalents at beginning of period			1,247,627				1,494,415
Cash and cash equivalents at end of period		$	1,647,175			$	1,247,627
Supplemental disclosures of cash flow information
Interest paid		$	1,220,439			$	1,060,483
Income taxes paid		$	5,599,745			$	582,883
Supplemental disclosures of noncash financing and investing activity
Additions to ROU assets obtained from new operating lease liabilities		$	457,317			$	2,232,314
Purchase accounting adjustment to Goodwill for a change in inventory		$	147,591			$	-
Purchase accounting adjustment to Goodwill for a change in fixed assets		$	73,520			$	-
Issuance of Class A common shares in business acquisition		$	-			$	1,000,012
Issuance of Class A common shares for capital expenditures		$	150,000			$	-

 

 

See accompanying notes to consolidated financial statements  

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CRAWFORD UNITED CORPORATION
December 31, 2023 and 2022

 

 

 

1.   BASIS OF PRESENTATION

 

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) and with the instructions to Form 10-K and Article 8 of Regulation S-X. The consolidated financial statements include the accounts of Crawford United Corporation and its wholly-owned subsidiaries (the “Company”). Significant intercompany transactions and balances have been eliminated in the financial statements.

 

During the year ended December 31, 2023, there have been no changes to the Company's significant accounting policies. 

 

 

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard was effective for smaller reporting companies for fiscal years beginning after December 15, 2022. The Company has fully adopted the standard with no material impact to the financial statements. 

 

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU enhances reportable segment disclosures on both an annual and interim basis primarily in regards to the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure(s) of segment profit or loss. In addition, the ASU requires disclosure, by segment, of other items included in the reported measure(s) of segment profit or loss, including qualitative information describing the composition, nature and type of each item. The ASU also expands disclosure requirements related to the CODM, including how the reported measure(s) of segment profit or loss are used to assess segment performance and allocate resources, the method used to allocate overhead for significant segment expenses and others. Lastly, all current required annual segment reporting disclosures under Topic 280 are now effective for interim periods. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this ASU.

 

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU enhances income tax disclosures by providing information to better assess how an entity’s operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, local and foreign jurisdictions. This ASU is effective for fiscal years and interim periods beginning after December 15, 2024. The Company is evaluating the impact of adopting this ASU.

 

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts of certain assets and liabilities and disclosure of contingencies at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.

 

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Fair Value Measurements

As defined in FASB ASC 820, "Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

 

* Level 1: Quoted market prices in active markets for identical assets or liabilities.

 

* Level 2: Inputs to the valuation methodology include:

 

- Quoted prices for similar assets or liabilities in active markets;

 

- Quoted prices for identical assets or similar assets or liabilities in inactive markets;

 

- Inputs other than quoted prices that are observable for the asset or liability;

 

- Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

* Level 3: Unobservable inputs that are not corroborated by market data.

 

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

 

The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

 

Investments in stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level 1 investment.

 

Concentration of Credit Risk
The Company sells its products and services primarily to customers in the United States of America and to a lesser extent overseas. All sales are made in U.S. dollars. The Company extends normal credit terms to its customers. For the year ended December 31, 2023, sales to nine customers in the Commercial Air Handling Equipment segment were 18.9% of consolidated sales of the Company, while sales to nine customers in the Industrial and Transportation Products segment accounted for 23.2% of consolidated sales. For the year ended December 31, 2022, sales to nine customers in the Commercial Air Handling Equipment segment were 17.0% of consolidated sales of the Company, while nine customers in the Industrial and Transportation Products segment accounted for 22.5% of consolidated sales.

 

Revenue Recognition

The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of the revenue standard is that a company should recognize revenue by analyzing the following five steps: (1) Identify the contract with the customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations; and 5) Recognize revenue when (or as) each performance obligation is satisfied. The Company primarily receives fixed consideration for sales of product. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. Costs incurred to obtain a contract will be expensed as incurred when the amortization period is less than a year. Shipping and handling amounts paid by customers are included in revenue. Sales tax and other similar taxes are excluded from revenue.

 

Contract Performance Obligations:

To determine proper revenue recognition, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether a combined or single contract should be accounted for as more than one performance obligation. This evaluation sometimes requires judgment, and the decision to combine contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to contain a single performance obligation if the promise to transfer individual goods or services is not separately identifiable from other promises in the contracts primarily because the Company provides a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple performance phases of the product lifecycle (development, construction, maintenance and support) are typically considered to have multiple performance obligations even when they are part of a single contract. The Company provides warranties, as well as limited workmanship warranties, to customers. These warranties are included in the sale, and do not provide customers with a service in addition to assurance of compliance with agreed upon specifications. The Company does not consider these assurance-type warranties to be separate performance obligations.

 

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Construction Contracts

The Company recognizes revenue on construction contracts over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. The customer typically controls the work in process, as evidenced by the contract.

 

The Company’s construction contracts are generally accounted for as a single performance obligation, since the Company is providing a significant service of integrating components into a single project. The Company recognizes revenue using a cost-based input method, by which actual costs incurred relative to total estimated contract costs determine, as a percentage, progress toward contract completion. This percentage is applied to the transaction price to determine the amount of revenue to recognize. The Company believes the cost-based input method is the best depiction of performance, because it directly measures the value of the services transferred to the customer. Revenues on uninstalled materials are recognized when control is transferred to the customer, which does not necessarily equate to when the cost is incurred.

 

If based on a lack of reliable information, progress cannot be reasonably measured, recognition of revenues (but not costs) is deferred until progress can be reliably measured. If, however, the Company expects that total costs will be recovered, revenues are recognized equal to costs incurred until the Company can reliably measure progress. There were no contracts that were unable to be reasonably measured at December 31, 2023 and 2022.

 

Revenues on uninstalled materials are recognized when control is transferred to the customer, which does not necessarily equate to when the cost is incurred. Under limited circumstances (e.g., transfer of control occurs significantly after services are provided, the cost of the materials is significant), revenue is recognized, but no profit is recognized, on certain uninstalled third-party materials when the cost is incurred.

 

Because the Company almost always acts as a principal in contracts, revenues are recognized gross. The Company is considered the principal because the Company controls the contractually specified goods and services before they are transferred to the customer. The payment terms of the Company’s construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as the Company expects to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.

 

The payment terms of the Company’s construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as the Company expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.

 

Contract Assets

Contract assets are related to the Commercial Air Handling segment. A contract asset is recorded when revenue is recognized in advance of the right to receive consideration (i.e., the Company must perform additional services in order to receive consideration). Amounts are recorded as receivables when the right to consideration is unconditional. When consideration is received, or the Company has an unconditional right to consideration in advance of delivery of goods or services, a contract liability would be recorded.

 

Contract Estimates

Due to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is subject to many variables and requires significant judgment. Since a significant change in one or more of these variables could affect the profitability of contracts, the Company reviews and updates contract-related estimates regularly through a review process in which the Company reviews the progress and execution of performance obligations and the estimated cost at completion.

 

The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, a provision for the entire loss is recognized in the period it is identified.

 

Contract Modifications

Contract modifications are routine in the performance of the Company’s contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract.

 

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Variable Consideration

The nature of the Company’s contracts can, but typically do not, give rise to several types of variable consideration, including claims, unpriced change orders, and liquidated damages and penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount.

 

Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on assessment of legal enforceability, past performance, and all information (historical, current, and forecasted) that is reasonably available to the Company.

 

Cost and Expense Recognition

Contract costs include all direct labor, materials, subcontractor, and equipment costs, and those indirect costs related to contract performance, such as indirect labor, tools and supplies. For construction contracts, costs are generally recognized as incurred. Under certain circumstances, costs incurred in the period related to future activity on contracts may be capitalized.

 

Costs incurred that do not contribute to satisfying performance obligations are excluded from the cost input calculation for revenue recognition. Excluded costs include both uninstalled materials and abnormal costs. Abnormal costs comprise wasted materials, wasted or rework labor and other resources to fulfill a contract that were not reflected in the price of the contract. A limited allowance for material overages and labor inefficiencies is typically included in our contract costs estimates (and by extension in the contract price).

 

For construction contracts, when it is probable that the total contract costs will exceed total contract revenues, a provision for the estimated expected loss is recorded. As long-term contracts extend over one or more years, revisions in costs and profits estimated during the course of the work are reflected in the accounting period in which the facts requiring the changes become known. Contracts which are substantially complete are considered closed for financial statement purposes.

 

Unearned Revenue

Unearned revenue consists of customer deposits and contract liabilities related to the Commercial Air Handling Equipment segment.  Unearned revenue for the year ended  December 31, 2022 was $4,354,868, substantially all of this unearned revenue was recognized in 2023

 

Disaggregation of Revenue

Revenue earned over time compared to at a point in time is as follows for the years ended December 31, 2023 and 2022.

 

		December 31,
		2023				2022
Earned over time		$	59,572,611			$	50,236,873
Point in time			84,313,323				77,518,054
Total revenue		$	143,885,934			$	127,754,927

 

Deferred Commissions

Commissions are earned based on the status of the contract. Commissions are paid upon receipt of payment for units shipped.

 

Product Warranties

The Company provides a warranty for its custom air handling business covering parts for 12 months from startup or 18 months from shipment, whichever comes first. The warranty reserve is maintained at a level which, in management’s judgment, is adequate to absorb potential warranties incurred. The amount of the reserve is based on management’s knowledge of the contracts and historical trends. Because of the uncertainties involved in the contracts, it is reasonably possible that management’s estimates may change in the near term. However, the amount of change that is reasonably possible cannot be precisely estimated at this time. There are no material warranty obligations outside of the air handling business.

 

Cash and Cash Equivalents
The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. From time to time the Company maintains cash balances in excess of the FDIC limits.

 

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Accounts Receivable

The Company recognizes an allowance for losses on accounts receivable in an amount equal to the current expected credit losses. The estimation of the allowance is based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and reasonable and supportable expectation of future conditions, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for expected credit losses is recognized in selling, general and administrative expenses

 

Inventory
Inventories are valued using the first-in, first-out (“FIFO”) method; stated at the lower of cost or net realizable value; and are reduced by an allowance for obsolete and slow-moving inventories. The allowance is estimated based on management’s review of inventories on hand with minimal sales activity, which is compared to estimated future usage and sales. Inventories identified by management as slow-moving or obsolete are reserved for based on estimated selling prices less disposal costs. 

 

Property, Plant and Equipment
Property, plant and equipment are carried at cost. Maintenance and repair costs are expensed as incurred. Additions and betterments are capitalized. The depreciation policy of the Company is generally as follows:

 

				Estimated Useful
Class		Method		Lives (years)
Buildings and Improvements		Straight-line		10 to 40
Machinery and Equipment		Straight-line		3 to 20

 

Valuation of Long-Lived Assets
Long-lived assets such as property, plant and equipment, as well as intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected future undiscounted cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying value of the asset.

 

Shipping and Handling Costs
Shipping and handling costs are classified as cost of product sold.

 

Income Taxes
The provision for income taxes is computed on domestic financial statement income. Where transactions are included in the determination of taxable income in a different year, deferred income tax accounting is used.

 

The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus any change in deferred taxes during the year. Deferred taxes result from differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The IRS concluded the audit of the 2018 Tax Return on February 3, 2023 and there were no material findings and this matter is considered closed.

 

Income per Common Share
Income per common share information is computed on the weighted average number of shares outstanding during each period.

 

Goodwill

Indefinite-lived intangible assets and Goodwill are tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not (i.e., a likelihood greater than 50%) that the intangible asset or the reporting unit is impaired.

 

Reclassifications: Certain 2022 financial information has been reclassified to conform to the 2023 presentation.

 

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3.    ACCOUNTS RECEIVABLE

 

The balance of accounts receivable, net was $19.7 million, $21.9 million, and $18.4 million at December 31, 2023, 2022 and 2021, respectively.

 

The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information relevant to estimating expected credit losses. The reserve for doubtful accounts was $105,223, $143,631 and $75,930 at  December 31, 2023, 2022 and 2021, respectively.

 

 

4.    INVENTORY

 

Inventory is valued at the lower of cost (first-in, first-out) or net realizable value and consists of the following:

 

		December 31,				December 31,
		2023				2022
Raw materials and component parts		$	3,989,444			$	2,892,820
Work-in-process			4,514,263				5,158,252
Finished products			9,846,694				13,483,017
Total inventory		$	18,350,401			$	21,534,089
Less: inventory reserves			677,779				1,357,947
Net inventory		$	17,672,622			$	20,176,142

 

 

5.     GOODWILL AND OTHER INTANGIBLE ASSETS

 

Impairment testing

 

U.S. GAAP requires that both indefinite-lived intangible assets and Goodwill are tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not (i.e., a likelihood greater than 50%) that the intangible asset or the reporting unit is impaired. During interim periods, ASC 350 requires companies to focus on those events and circumstances that affect the significant inputs used to determine the fair value of the asset group or reporting unit to determine whether an interim quantitative impairment test is required.

 

The Company performed its annual impairment test for Goodwill and intangible assets as of the last day of the fourth quarter. The Company first assessed certain qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible assets is less than its carrying amount, and whether it is therefore necessary to perform the quantitative impairment test. In 2023, for all reporting units other than CAD Enterprises the qualitative analysis indicated that a quantitative analysis was not necessary. During 2022 a quantitative analysis was performed for Global-Tek as well as CAD. No impairment was identified in the periods presented.

 

The Goodwill values are presented below:

 

		December 31,				December 31,
		2023				2022
Commercial Air Handling Equipment Segment:
Beginning Balance		$	478,256			$	478,256
Acquisitions			-				-
Adjustments			-				-
Ending Balance		$	478,256			$	478,256
Industrial and Transportation Products Segment:
Beginning Balance		$	15,753,682			$	13,926,362
Acquisitions			-				1,997,174
Adjustments			221,111				(169,854	)
Ending Balance		$	15,974,793			$	15,753,682
Total Company:
Beginning Balance		$	16,231,938			$	14,404,618
Acquisitions			-				1,997,174
Adjustments			221,111				(169,854	)
Ending Balance		$	16,453,049			$	16,231,938

 

Goodwill increased by $0.2 million from $16.2 million at  December 31, 2022 to $16.5 million at  December 31, 2023. The increase in Goodwill was driven by a purchase accounting adjustment to Goodwill, recorded in the second quarter of 2023, for Knitting Machinery Company of America (KMC). Goodwill increased by $1.8 million from $14.4 million at   December 31, 2021 to $16.2 million at  December 31, 2022. The increase in Goodwill was driven by the addition of $2.0 million in the Industrial and Transportation Products segment related to the acquisitions of Reverso Pumps & Separ America and KMC and in the first and second quarters of 2022, respectively. These increases were partially offset by a decrease of $0.2 million related to a purchase accounting adjustment for Global-Tek, also in the Industrial and Transportation Products segment.

 

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Intangible assets relate to the purchase of businesses. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is not amortized, but is reviewed on an annual basis for impairment. Amortization of other intangible assets is calculated on a straight-line basis over periods ranging from one year to 15 years. Intangible assets consist of the following:

 

		December 31, 2023				December 31, 2022
Customer list intangibles		$	9,316,000			$	9,316,000
Non-compete agreements			200,000				200,000
Trademarks			4,466,899				4,445,649
Total intangible assets			13,982,899				13,961,649
Less: accumulated amortization			5,730,299				4,469,089
Intangible assets, net		$	8,252,600			$	9,492,560

 

Intangible amortization expense was as follows:

 

		December 31, 2023				December 31, 2022
Accumulated amortization at the beginning of the period		$	4,469,089			$	3,203,585
Amortization expense			1,261,210				1,265,504
Accumulated amortization at end of period		$	5,730,299			$	4,469,089

 

Intangible amortization for the next five years is as follows:

 

		Amortization in future periods
2024			1,261,210
2025			1,261,210
2026			933,345
2027			817,298
2028			759,117

  

 

6.      PROPERTY, PLANT AND EQUIPMENT, NET

 

Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Property, plant and equipment are as follows:

 

		December 31,				December 31,
		2023				2022
Land		$	231,034			$	231,034
Buildings and improvements			3,760,203				3,222,243
Machinery & equipment			24,851,703				23,301,660
Total property, plant & equipment			28,842,940				26,754,937
Less: accumulated depreciation			14,156,750				11,541,494
Property plant & equipment, net		$	14,686,190			$	15,213,443

 

During the second quarter of 2023, the Company issued 7,317 Class A Common Shares, valued at $150,000, to Air Power Dynamics, LLC in an arms-length exchange for an aerospace tooling machine. Air Power Dynamics, LLC is controlled by Ambassador Edward Crawford, who is the chairman of the Company's board.

 

Depreciation expense for the years ended  December 31, 2023 and 2022 was $2,619,244 and $2,398,445, respectively.

 

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7.  INVESTMENTS IN EQUITY SECURITIES

 

Investments in equity securities as of  December 31, 2023 and 2022 are summarized in the table below:

 

										UNREALIZED				REALIZED
		BALANCE				ACQUISITIONS,				GAINS				GAINS				BALANCE
		AT				DISPOSITIONS				(LOSSES)				(LOSSES)				AT END
		BEGINNING				AND				INCLUDED				INCLUDED				OF
		OF YEAR				SETTLEMENTS				IN EARNINGS				IN EARNINGS				PERIOD
December 31, 2022		$	1,518,244			$	-			$	(860,273	)		$	-			$	657,971
Year-to-date December 31, 2023			657,971				-				53,614				(46,284	)			665,301

 

Investments by fair value level in the hierarchy as of December 31, 2023 and December 31, 2022 are as follows:

 

Unobservable

Quoted

Models with

Inputs that

Market

Significant

are not

Total

Prices in

Observable

Corroborated

Carrying

Attractive

Market

by Market

Value in the

Markets

Parameters

Data

Balance

(Level 1)

(Level 2)

(Level 3)

Sheet

Common stock as of December 31, 2023

$

665,301

$

-

$

-

$

665,301

Common stock as of December 31, 2022

$

657,971

$

-

$

-

$

657,971

 

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8.      BANK DEBT and NOTES PAYABLE

The Company is party to a Credit Agreement with JPMorgan Chase Bank, N.A. as lender (as amended, the “Credit Agreement”).

 

The Company entered into a sixth amendment to the Credit Agreement on  June 12, 2023. The most significant change in the amended Credit Agreement was the discontinued use of LIBOR as a reference rate, with the adoption of the Federal Reserve Bank of New York's Secured Overnight Financing Rate (SOFR) as the primary reference rate. This change was anticipated and aligns with the US Dollar LIBOR panel ceasing on  June 30, 2023.  

 

The Company entered into a seventh amendment to the Credit Agreement on November 27, 2023. The Seventh Amendment to the Credit Agreement, among other things, (a) extends the maturity date of the underlying credit facility from June 1, 2024 to June 1, 2027, (b) increases the maximum annual amount that the Company and its subsidiaries may pay in dividends or other restricted payments to $2,000,000 from $1,250,000, and (c) permits the repurchase by the Company and its subsidiaries of up to $7,000,000 of Company equity prior to June 30, 2024, subject to compliance with certain financial covenants under the Credit Agreement.

 

A Term Loan A matured  December 1, 2022, and was paid in full on  January 4, 2023.

 

The revolving facility under the Credit Agreement includes a $3 million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or SOFR (previously LIBOR) plus applicable margins of (i) (0.25%) for Prime Rate loans and (ii) 1.75% for SOFR (previously LIBOR) loans. The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of 0.25% per annum payable quarterly.

 

The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio.

 

Bank debt balances consist of the following:

 

		December 31,				December 31,
		2023				2022
Term debt		$	-			$	222,222
Revolving debt			5,112,187				19,281,119
Total Bank debt			5,112,187				19,503,341
Less: current portion			-				222,222
Non-current bank debt			5,112,187				19,281,119
Less: unamortized debt costs			15,515				56,801
Net non-current bank debt		$	5,096,672			$	19,224,318

 

The Company had $24.9 million and $10.7 million available to borrow on the revolving credit facility at December 31, 2023 and 2022, respectively.  

 

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Notes Payable – Related Party

In connection with the Komtek Forge acquisition, on January 15, 2021, the Company refinanced its previously outstanding First Francis promissory notes in the aggregate amount of $2,077,384, including accrued interest payable through the refinance date and combined this amount with an existing First Francis promissory note carried by Komtek Forge in the amount of $1,702,400 into one note for a combined $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021. The interest rate on the refinanced loan remained at 6.25% per annum. First Francis is owned by Ambassador Edward Crawford and Matthew Crawford, both of whom serve on the Board of Directors of the Company.

 

Notes Payable – Seller Note

Effective  July 1, 2018, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of CAD. Upon the closing of the transaction, the CAD shares were transferred and assigned to the Company in consideration of the payment by the Company of an aggregate purchase price of $21 million, $12 million of which was payable in cash at closing, with the remainder paid in the form of a subordinated promissory note issued by the Company in favor of a Seller (the “Seller Note”). The Seller Note had an interest rate of four percent (4.00%) per annum and the loan was paid in full on  March 31, 2023.

 

Notes Payable

 

Notes payable consists of the following: 

 

		December 31,				December 31,
		2023				2022
In connection with the Komtek Forge acquisition, the Company refinanced its previously outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021 and maturing on October 15, 2025		$	1,294,435			$	2,587,877
In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the seller, payable in quarterly installments beginning September 30, 2018. The note was paid in full on March 31, 2023			-				562,500
Total notes payable			1,294,435				3,150,377
Less current portion			824,226				1,303,972
Notes payable – non-current portion		$	470,209			$	1,846,405

 

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Principal payments on the notes payable are as follows for the years ended December 31:

 

		Related Party				Total Principal
		Notes				Payments
2024			824,226				824,226
2025			470,209				470,209
2026			-				-
2027			-				-
Total principal payments		$	1,294,435			$	1,294,435

 

 

9.     LEASES 

 

The Company has operating leases for facilities, vehicles and equipment. These leases have remaining terms of 2 years to 10 years, some of which include options to extend the leases for up to 10 years.  Lease expense for the years ended  December 31, 2023 and 2022 was approximately $2.2 million and $2.0 million, respectively.

 

Supplemental balance sheet information related to leases:

 

		December 31,				December 31,
		2023				2022
Operating leases:
Operating lease right-of-use assets, net		$	8,356,903			$	9,524,280
Other current liabilities			1,714,174				1,705,224
Operating lease liabilities			6,901,043				8,060,152
Total operating lease liabilities		$	8,615,217			$	9,765,376
Weighted Average Remaining Lease Term
Operating Leases (in years)			7.1				7.7
Weighted Average Discount Rate
Operating Leases			5.0	%			5.0	%

 

Future minimum lease payments at December 31, 2023 were as follows:

 

		Operating
		Leases
Year Ending December 31,
2024		$	2,105,239
2025			2,061,125
2026			1,521,090
2027			845,957
2028			636,577
Thereafter			3,059,965
Total future minimum lease payments		$	10,229,953
Less: imputed interest			(1,614,736	)
Total		$	8,615,217

 

Commitments and Contingencies
From time to time, the Company is involved in legal matters arising in the ordinary course of business. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will not have an adverse effect on its business, financial condition or results of operations. 

 

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10. SHAREHOLDERS’ EQUITY

 

There are 10,000,000 Class A Shares and 2,500,000 Class B Shares authorized, as well as 1,000,000 Serial Preferred Shares.

 

Unissued shares of Class A common stock (1,002,848 and 1,002,848 shares at December 31, 2023 and 2022, respectively) are reserved for the share-for-share conversion rights of the Class B common stock. The Class A shares have one vote per share and the Class B shares have three votes per share, except under certain circumstances such as voting on voluntary liquidation, sale of substantially all the assets, etc. Dividends up to $0.10 per year, noncumulative, must be paid on Class A shares before any dividends are paid on Class B shares.

 

 

11. STOCK COMPENSATION 

On November 20, 2023, the Board of Directors of the Company approved and adopted the Company’s 2023 Omnibus Equity Plan (the “2023 Equity Plan”). The 2023 Equity Plan replaces the Company’s 2013 Omnibus Equity Plan, which had expired. The 2023 Equity Plan became effective upon the Board’s approval, however the Company intends to submit the plan to the Company’s shareholders for ratification and approval at the Company’s 2024 annual meeting of shareholders.

 

The 2023 Equity Plan is administered by the Company’s Compensation Committee, in coordination with the Board. The 2023 Equity Plan permits awards to be made to officers, employees, consultants and directors of the Company, as selected by the Compensation Committee in coordination with the Board. The 2023 Equity Plan generally provides for the following types of awards: common shares, performance shares, restricted shares, restricted share units, stock appreciation rights and stock options. Stock options may be issued as either incentive stock options or nonqualified stock options, however incentive stock options may be issued only if the 2023 Equity Plan is ratified and approved by the Company’s shareholders.

 

The aggregate number of Class A common shares of the Company (“Class A Common Shares”) reserved for issuance pursuant to the 2023 Equity Plan is 350,000, and shares may again become available for awards under the 2023 Equity Plan in the event that any portion of an award is forfeited or terminated prior to its complete vesting or exercise.

 

Awards may be made under the 2023 Equity Plan for a period of ten years from the plan’s effective date, subject to the Board’s ability to amend, alter, suspend, discontinue, or terminate the 2023 Equity Plan or any portion thereof at any time.

 

No stock options are outstanding. Non-cash compensation expense, all related to restricted share awards, was $1,377,423 and $957,728 for the years ended December 31, 2023 and 2022, respectively. All but an immaterial number of shares issued had no vesting requirements.

 

		December 31,
		2023				2022
Class A shares issued to Directors and employees related to stock compensation plans			34,700				32,200
Non-cash stock compensation expense		$	1,377,423			$	957,728

 

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A summary of the Company’s Treasury stock acquired for the years ended December 31, 2022 and December 31, 2023 is as follows:

 

		TREASURY SHARES
		CLASS A				CLASS B
Balance at December 31, 2021			41,844				182,435
Share repurchase			5,568				-
Balance at December 31, 2022			47,412				182,435
Share repurchase			6,662				-
Balance at December 31, 2023			54,074				182,435

 

 

12. INCOME TAXES 

 

Income tax expense for 2023 was $3,869,355 which was comprised of $4,817,023 of current income tax expense and $947,668 of deferred income tax benefit, resulting in an effective tax rate of 22.5%. Income tax expense for 2022 was $1,170,791 which was comprised of $2,629,560 of current income tax expense and $1,458,769 of deferred income tax benefit, resulting in an effective tax rate of 15.1%.

 

A reconciliation of the provision of income taxes to the statutory federal income tax rate is as follows:

 

		Year				Year
		December 31,				December 31,
		2023				2022
Income Before Provision for Income Taxes		$	17,164,148			$	7,732,194
Statutory rate			21	%			21	%
Tax at statutory rate			3,604,471				1,623,761
State taxes, net of federal benefit			302,484				20,438
Release of FIN 48 reserve			(121,000	)			(414,000	)
Deferred Adjustments			125,935				-
Permanent differences			(299,103	)			(17,334	)
Return to provision adjustments			262,552				(22,681	)
Other			(5,984	)			(19,393	)
Provision for income taxes		$	3,869,355			$	1,170,791

 

Deferred tax assets (liabilities) consist of the following: 

 

		December 31,				December 31,
		2023				2022
Inventories		$	176,022			$	221,441
Bad debts			23,197				5,757
Accrued liabilities			527,320				677,728
Prepaid expense			(103,037	)			(136,419	)
Depreciation and amortization			(2,464,503	)			(3,111,224	)
Capitalized Costs			496,897				629,085
Research and development and other credit carryforwards			1,067,816				443,689
Right of use lease accounting			(149,876	)			(80,376	)
Directors stock option plan			203,914				180,761
Total deferred tax liability			(222,250	)			(1,169,558	)
Valuation allowance			(33,000	)			(39,000	)
Reserve for uncertain tax positions			(55,000	)			(176,000	)
Total reserves & allowances			(88,000	)			(215,000	)
Net deferred tax liability, net of reserves		$	(310,250	)		$	(1,384,558	)

 

Valuation Allowance
The Company has a valuation allowance for deferred tax assets based upon certain credits that may not be fully utilized in the future. The Company believes the valuation allowance of $33,000 at December 31, 2023 and $39,000 at December 31, 2022, is adequate.

 

Reserve for Uncertain Tax Positions
The Company has a reserve of unrecognized tax benefits related to exposures in accordance with ASC 740. The Company believes the reserve of $55,000 at December 31, 2023 and $176,000 at December 31, 2022, is adequate. Due to the uncertainties involved with this significant estimate, it is reasonably possible that the Company’s estimate may change in the near term. 

 

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Tax Credits and Net Operating losses:

At December 31, 2023, the Company has state net operating losses (NOLs) and research and development (R&D) and other credit carryforwards for tax purposes which expire as follows: 

 

Tax Year						R& D & Other
Expires		State NOLs				Credits
2024		$	-			$	3,000
2025			-				3,000
2026			-				3,000
2027			-				3,000
2028			-				3,000
2029			-				3,000
2030			-				3,000
2031			-				3,000
2032			-				3,000
2033			-				3,000
2034			-				3,000
2035			-				-
2036			-				-
2037			-				-
2038 and beyond			-				-
		$	-			$	33,000

  

 

13.     EARNINGS PER COMMON SHARE 

 

The following table sets forth the computation of basic and diluted earnings per share and is inclusive of A and B Common Shares. 

 

		Years Ended
		2023				2022
Net Income Per Common Share - Basic
Income available to common stockholders		$	13,294,793			$	6,561,403
Weighted Average Shares of Common Stock Outstanding			3,507,883				3,462,868
Net Income Per Common Share - Basic		$	3.79			$	1.89
Effect of Dilutive Securities
Weighted Average Shares of Common Stock Outstanding - Basic			3,507,883				3,462,868
Unvested Restricted Stock Awards			18,953				-
Weighted Average Shares of Common Stock Outstanding - Diluted			3,526,836				3,462,868
Net Income Per Common Share – Diluted
Income available to common stockholders		$	13,294,793			$	6,561,403
Weighted Average Shares of Common Stock Outstanding - Diluted			3,526,836				3,462,868
Net Income Per Common Share - Diluted		$	3.77			$	1.89

 

There were no options included in the computation of diluted earnings for the year ended December 31, 2023 or for the year ended December 31, 2022.

 

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14.     EMPLOYEE BENEFIT PLANS 

 

The Company has a 401(k) Savings and Retirement Plans covering all full-time employees. Company contributions for each of these plans, including matching of employee contributions, are at the Company's discretion.

 

For the years ended December 31, 2023 and 2022, the Company made matching contributions to the plans in the amount of $389,179 and $359,965 respectively. Komtek Forge makes pension contributions to the United Steelworkers pension fund on behalf of its employees. For the years ended December 31, 2023 and December 31, 2022, these contributions amounted to $66,362 and $55,914 respectively. The Company does not provide any other postretirement benefits to its employees.

 

 

15.  ACQUISITIONS

 

Effective January 10, 2022, Crawford REV Acquisition Company LLC (name later changed to Reverso Pumps LLC or “Reverso Pumps”), a Delaware limited liability company and indirect wholly-owned subsidiary of Crawford United Corporation (the “Company”), completed the acquisition (the “Reverso Transaction”) of substantially all the assets of Reverso Pumps, Inc., a Florida corporation and developer, designer, manufacturer, seller and distributor of oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems (“Reverso”), pursuant to an Asset Purchase Agreement (the “Reverso Asset Purchase Agreement”) entered into and effective January 10, 2022 by and among Reverso Pumps, the Seller, the seller parties named therein and the Seller Parties’ representatives named therein. Upon the closing of the Transaction, the assets were transferred and assigned to Reverso Pumps in exchange for approximately $2.6 million in cash after post-closing adjustments.

 

Additionally, effective on January 10, 2022, Crawford SEP Acquisition Company LLC (name later changed to Separ America LLC or “Separ America”), a Delaware limited liability company and indirect wholly-owned subsidiary of the Company, completed the acquisition (the “Separ Transaction,” and with the Reverso Transaction, the “Transactions”) of substantially all the assets of Separ of the Americas, LLC, a Florida limited liability company and developer, designer, manufacturer, seller and distributor of oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems (“Separ”) pursuant to an Asset Purchase Agreement (the “Separ Asset Purchase Agreement,” and together with the Reverso Asset Purchase Agreement, the “Purchase Agreements”) by and among Separ America, the Seller, the seller parties named therein and the Seller Parties’ representative named therein. Upon the closing of the Transaction, the assets were transferred and assigned to Separ America in exchange for approximately $1.6 million in cash after post-closing adjustments.

 

Cash Consideration Transferred		$	3,951,392
Seller Transaction Costs			230,359
Total Consideration		$	4,181,751
Accounts Receivable			466,887
Inventory			1,308,822
Fixed Assets			64,710
Prepaid and Other Assets			64,080
Intangible Assets: Customer List & Trademarks			1,300,000
Goodwill			1,572,913
Total Assets Acquired		$	4,777,412
Accounts Payable		$	542,359
Accrued Expense			53,302
Total Liabilities Assumed		$	595,661
Total Fair Value		$	4,181,751
Acquisition transaction costs incurred were:		$	124,825

 

Goodwill

Goodwill has an assigned value of $1.6 million and represents the expected synergies generated by combining the operations of Reverso, Separ, and the Company. The Company sells marine hoses and related products and the acquisition of Reverso Pumps and Separ America will allow the Company to expand its offerings to customers in the strategically important marine and defense markets. Intangible assets, customer list has an assigned value of $0.5 million which represents the expected value of the list of the customers of Reverso Pumps and Separ America. Intangible assets, trademarks has an assigned value of $0.8 million which represents the expected value of the trademarks of Reverso Pumps and Separ America.

 

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Effective May 1, 2022, Knitting Machinery Company of America, LLC, a Delaware limited liability company (“Knitting Machinery”) and indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of all of the operating assets of KMC Corp. dba Knitting Machinery Corp., a Delaware corporation and specialist in the manufacture of hose reinforcement machinery for the plastic, rubber and silicone industries pursuant to an Asset Purchase Agreement entered into as of May 1, 2022. The acquired business is strategically important to the Company’s growing industrial hose platform and will expand its offerings and diversify its customer base in this important market segment. The assets were transferred and assigned to Knitting Machinery in exchange for approximately $250,000 in cash and 38,462 Class A Common Shares valued at $1.0 million.

 

Cash Consideration Transferred		$	250,000
Fair Value of Stock Consideration			1,000,012
Total Consideration		$	1,250,012
Cash		$	100,000
Accounts Receivable			155,932
Inventory			517,270
Fixed Assets			90,603
Intangible Assets			150,000
Goodwill			645,372
Total Assets Acquired		$	1,659,177
Accounts Payable		$	33,694
Deferred Revenue			375,471
Total Liabilities Assumed		$	409,165
Total Fair Value			1,250,012
Acquisition transaction costs incurred were:		$	30,479

 

Goodwill and Intangible Assets

Goodwill has an assigned value of $0.6 million and represents the expected synergies generated by combining the operations of KMC and the Company. Goodwill increased by $0.2 million from $0.4 million at   December 31, 2022 to $0.6 million at December 31, 2023. The increase in Goodwill was driven by a purchase accounting adjustment to Goodwill in the second quarter of 2023 for a change in inventory and fixed assets. The Company utilizes industrial hoses for customers in the Industrial and Transportation Products segment and the acquisition of KMC has allowed the Company to strengthen its supply chain. Intangible asset, trademark has an assigned value of $0.075 million which represents the expected value of the KMC trade name in the market. Intangible asset, customer list has an assigned value of $0.075 million which represents the expected value of the list of the customers of KMC to the Company.

 

Sales and Net Income for the Acquired Companies

Sales and net income information for the acquired companies, Reverso Pumps LLC (“Reverso Pumps”), Separ America LLC (“Separ America”) and Knitting Machinery Company of America LLC (“Knitting Machinery”) since the respective acquisition dates for years ended  December 31, 2023 and 2022 are provided below.

 

		Year ended								Year ended
		December 31, 2023								December 31, 2022
		Sales				Net Income				Sales				Net Income
Acquired Companies:
Reverso Pumps (acquired January 10, 2022)		$	6,527,485			$	1,141,472			$	5,467,426			$	876,558
Separ America (acquired January 10, 2022)			2,339,485				744,663				1,746,551				353,239
Knitting Machinery (acquired May 1, 2022)			633,573				33,579				1,022,603				82,830
Subtotal Acquired Companies		$	9,500,543			$	1,919,714				8,236,580				1,312,627
All Other Companies			134,385,391				11,375,079				119,518,347				5,248,776
Total		$	143,885,934			$	13,294,793			$	127,754,927			$	6,561,403

 

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16. SEGMENT AND RELATED INFORMATION  

 

The Company reports operations for two business segments: (1) Commercial Air Handling Equipment and (2) Industrial and Transportation Products. The identification of our operating segments is based on guidance in ASC 280-10-50-1. The Company's management evaluates segment performance based primarily on segment operating profit. Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses. The Company does not allocate corporate costs to the respective segments.

 

Both the Commercial Air Handling Equipment segment and the Industrial and Transportation Products segment engage in business activities from which they may recognize revenues and incur expenses, including revenue and expenses relating to transactions with other components of the Company. The operating results for both the Commercial Air Handling Equipment segment and the Industrial and Transportation Products segment are reviewed regularly by our chief operating decision maker, the chief executive officer, and is considered in making decisions about resources to be allocated to the segment in assessing its performance. Financial information for both segments is available in internal financial statements that are prepared on a monthly basis.

 

Commercial Air Handling Equipment:

The Commercial Air Handling Equipment segment was added June 1, 2017, when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of 50 years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.

 

Industrial and Transportation Products: 

The Industrial and Transportation Products segment was added July 1, 2016, when the Company purchased the assets of the Federal Hose Manufacturing, LLC of Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets. The Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc.(“CAD”) in Phoenix, Arizona on July 1, 2018. CAD provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions. Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels. CAD’s quality certifications include ISO 9001:2015/AS9100D, as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, and TIG/E-Beam welding. The Company added the distribution of marine hose to this segment through the acquisition of the assets of MPI Products, Inc. (“MPI”) on January 2, 2020. MPI specializes in rubber and plastic marine hose for the recreational boating industry. MPI offers certified products that meet marine industry standards and regulations. Effective April 19, 2019, the Company, completed the acquisition of substantially all of the assets of Data Genomix, Inc., an Ohio corporation (“DG”). DG is in the business of developing and commercializing marketing and data analytic technology applications. The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC), in Worcester, Massachusetts on January 15, 2021. Komtek Forge LLC is a supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical and defense industries. The Company purchased all of the membership interests of Global-Tek-Manufacturing LLC (“Global-Tek”), in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology LLC (name later changed to Global-Tek Colorado LLC or “Global-Tek Colorado”) in Longmont, Colorado on March 2, 2021. Global-Tek and Global-Tek Colorado specialize in providing customers with highly engineered manufacturing solutions, including CNC machining, anodizing, electro polishing and laser marking for customers in the defense, aerospace and medical device markets. The Company purchased substantially all of the assets of Emergency Hydraulics LLC (“Emergency Hydraulics”), in Ocala, Florida on July 1, 2021. Emergency Hydraulics provides hydraulic hoses, air tank assemblies and related products to manufacturers of firefighting trucks and other emergency vehicles. The company purchased substantially all of the assets of Crawford REV Acquisition Company LLC (name later changed to Reverso Pumps LLC or “Reverso Pumps”), in Davie, Florida on January 10, 2022. Reverso Pumps develops, designs, manufactures, sells and distributes oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems.

 

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The company purchased substantially all of the assets of Crawford SEP Acquisition Company LLC (name later changed to Separ America LLC or “Separ America”), in Davie, Florida on January 10, 2022. Separ America develops, designs, manufactures, sells and distributes oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems. The company purchased substantially all of the assets of KMC Corp. dba Knitting Machinery Corp. (“Knitting Machinery”), in Cleveland, Ohio and Greenville, Ohio on May 1, 2022. Knitting Machinery specializes in manufacturing hose reinforcement machinery for the plastic, rubber and silicone industries.

 

The factors used to determine the Company’s reportable segments follow the guidance of ASC 280-10-50-21 and 50-10-22 and include consideration of the type of products or services delivered, the customers and end markets served, the appliable revenue recognition methodology and the length of time it takes to deliver products or services to customers. The Commercial Air Handling Equipment segment was identified as a reportable segment consisting of Air Enterprises, because Air Enterprises is strategically and operationally different from our other companies in several ways. First, Air Enterprises sells equipment to end customers and our other businesses that fall into the Industrial and Transportation Products segment sell products and components to end customers, not equipment. Second, the Commercial Air Handling Equipment segment delivers custom air handling solutions to customers which is different than the Industrial and Transportation Products segment which delivers manufactured metal, silicone, hydraulic and marine hoses, complex engineered components, highly engineered forgings, highly engineered and machined parts and data analytic technology applications. Third, the Commercial Air Handling Equipment segment serves customers primarily in the health care and education end markets while the Industrial and Transportation Products segment delivers products to customers in the heavy-duty truck manufacturing, agricultural, industrial, petrochemical, aerospace, defense, industrial gas turbine, medical prosthetics, alternative energy and emergency vehicle end markets. Fourth, the Commercial Air Handling Equipment segment recognizes revenue primarily over time while the Industrial and Transportation Products segment recognizes revenue primarily at a point in time. Fifth, the Commercial Air Handling Equipment segment manufactures custom air handling solutions for customers over a period of three to eighteen months from the time the order is received to the time the air handling solution is delivered to the end customer as compared to the Industrial and Transportation Products segment which sells and delivers products to customers much more quickly, often within 30 days or less. For the reasons previously mentioned, Air Enterprises is strategically and operationally different than the other businesses owned by the Company and management finds it useful to include this business in the Commercial Air Handling Segment which is separate and distinct from all of our other businesses that reside in the Industrial and Transportation Products segment.

 

Corporate: 

Corporate costs not directly attributable to a segment are aggregated here.

 

Information by industry segment is set forth below: 

 

		Twelve Months ended 2023
						Industrial
		Commercial				And
		Air				Transportation
		Handling				Products				Corporate				Consolidated
Sales		$	58,378,593			$	85,507,341			$	-			$	143,885,934
Gross Profit			19,123,207				18,522,875				-				37,646,082
Operating Income			15,367,247				7,594,668				(5,029,444	)			17,932,471
Pretax Income			15,367,247				8,173,742				(6,376,841	)			17,164,148
Net Income			10,987,581				6,090,530				(3,783,318	)			13,294,793

 

 

		Twelve Months ended 2022
						Industrial
		Commercial				And
		Air				Transportation
		Handling				Products				Corporate				Consolidated
Sales		$	47,649,695			$	80,105,232			$	-			$	127,754,927
Gross Profit			10,751,822				16,280,959				-				27,032,781
Operating Income			6,670,069				5,955,820				(4,092,417	)			8,533,472
Pretax Income			6,670,069				5,951,335				(4,889,210	)			7,732,194
Net Income			4,769,099				4,253,978				(2,461,674	)			6,561,403

 

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		Year Ended				Year Ended
		December 31,				December 31,
		2023				2022
Capital Expenditures:
Commercial Air Handling Equipment Segment		$	250,685			$	53,591
Industrial and Transportation Products Segment			1,290,742				534,563
Corporate			491,346				154,674
Total Capital Expenditures		$	2,032,773			$	742,828
Depreciation and Amortization:
Commercial Air Handling Equipment Segment		$	432,038			$	431,752
Industrial and Transportation Products Segment			3,344,898				3,151,898
Corporate			144,804				167,155
Total Depreciation and Amortization		$	3,921,740			$	3,750,805
Identifiable Assets:
Commercial Air Handling Equipment Segment		$	20,252,946			$	20,681,082
Industrial and Transportation Products Segment			70,808,054				76,701,530
Corporate			2,578,598				2,215,461
Total Identifiable Assets		$	93,639,598			$	99,598,074

 

Geographical Information
Included in the consolidated financial statements are the following amounts related to geographic locations:

 

		Year Ended				Year Ended
		December 31,				December 31,
		2023				2022
United States of America		$	140,583,071			$	125,097,522
Puerto Rico			1,665,770				413,684
Canada			975,866				1,175,246
Other			661,227				1,068,475
		$	143,885,934			$	127,754,927

 

All export sales to foreign countries are made in US Dollars.

 

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17. QUARTERLY DATA (UNAUDITED)

 

The following table presents the Company’s unaudited quarterly consolidated income statement data for the years ended December 31, 2023 and 2022. These quarterly results include all adjustments consisting of normal recurring adjustments that the Company considers necessary for the fair presentation for the quarters presented and are not necessarily indicative of the operating results for any future period.

 

		Year Ended December 31, 2023
		March 31,				June 30,				September 30,				December 31,
		2023				2023				2023				2023
Sales		$	39,484,356			$	36,933,015			$	33,641,513			$	33,827,050
Gross Profit			10,516,552				10,474,878				8,909,332				7,745,321
Operating Income			5,119,267				5,152,364				4,296,968				3,363,871
Net Income			3,391,473				3,851,342				2,814,736				3,237,242
Net Income per Common Share:
Basic		$	0.97			$	1.10			$	0.80			$	0.92
Diluted		$	0.97			$	1.09			$	0.80			$	0.91

 

		Year Ended December 31, 2022
		March 31,				June 30,				September 30,				December 31,
		2022				2022				2022				2022
Sales		$	31,002,746			$	31,902,027			$	32,189,623			$	32,660,531
Gross Profit			6,366,405				6,768,491				6,309,803				7,588,082
Operating Income			1,397,321				2,375,527				1,999,678				2,760,946
Net Income			1,065,875				1,171,264				1,254,545				3,069,719
Net Income per Common Share:
Basic		$	0.31			$	0.34			$	0.36			$	0.88
Diluted		$	0.31			$	0.34			$	0.36			$	0.88

 

 

18. SUBSEQUENT EVENTS

 

Effective January 2, 2024, the Company acquired substantially all of the assets of Heany Industries Inc. (“Heany”) under an asset purchase agreement in exchange for $7 million in cash, subject to customary post-closing adjustments. Heany offers materials engineering solutions for a variety of aerospace, industrial and bio-medical applications. Heany’s engineered coatings provide a protective shield for aircraft engine components, locomotive parts, dental implants, and other applications where increasing longevity and reducing downtime is critical. The asset purchase agreement contains customary indemnification obligations of each party with respect to breaches of their respective representations, warranties and covenants, and certain other specified matters, which are subject to certain exceptions, terms and limitations. The asset purchase agreement contains certain customary post-closing covenants of the parties.

 

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. 

 

None.

 

 

ITEM 9A. CONTROLS AND PROCEDURES.

 

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

 

The Company has established disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and, as such, is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, to allow timely decisions regarding required disclosure.

 

The Company does not expect that its disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

As of December 31, 2023, an evaluation was performed, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, the Company’s management, including the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2023.

 

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

 

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

A material weakness is a deficiency or combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of its financial statements would not be prevented or detected on a timely basis.

 

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Under the supervision and with the participation of management, including the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, we conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, as required by Rule 13a-15(c) of the Exchange Act. In making this evaluation, we used the criteria set forth in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2023.

 

This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

 

 

/s/ B. E. Powers

B. E. Powers
President and Chief Executive Officer

 

 

/s/ J. J. Salay

 

J. J. Salay
Chief Financial Officer

 

March 5, 2024

 

 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There was no change in our internal control over financial reporting during the quarter ended December 31, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 

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ITEM 9B. OTHER INFORMATION.

 

During the quarter ended December 31, 2023, no director or officer of the Company adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, each as defined in Item 408 of Regulation S-K.

 

 

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

 

Not applicable.

 

 

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PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. 

 

Information required by this Item as to the Audit Committee, the Audit Committee financial expert, the procedures for recommending nominees to the Board of Directors and compliance with Section 16(a) of the Exchange Act is incorporated herein by reference to the information set forth under the captions "Information Regarding Meetings and Committees of the Board of Directors" and "Delinquent Section 16(a) Reports" in the Company's definitive Proxy Statement on Schedule 14A for the 2024 Annual Meeting of Shareholders, to be filed by the Company with the Securities and Exchange Commission not later than 120 days after the end of the Company's fiscal year pursuant to Regulation 14A.

 

The Company has historically operated under informal ethical guidelines, under which the Company's principal executive, financial, and accounting officers, are held accountable. In accordance with these guidelines, the Company has always promoted honest, ethical and lawful conduct throughout the organization and has adopted a written Code of Ethics for the Chief Executive Officer and Chief Financial Officer. In addition, the Company adopted and the Board of Directors approved a written Code of Ethics and Business Conduct for all officers and employees, which is available on the Company’s website at www.crawfordunited.com under “Investor Relations”.

 

ITEM 11. EXECUTIVE COMPENSATION. 

 

The information required by this Item 11 is incorporated by reference to the information set forth under the caption "Executive Compensation" in the Company's definitive Proxy Statement on Schedule 14A for the 2024 Annual Meeting of Shareholders, to be filed by the Company with the Securities and Exchange Commission not later than 120 days after the end of the Company's fiscal year pursuant to Regulation 14A.

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. 

 

The information required by this Item 12 is incorporated by reference to the information set forth under the captions "Principal Shareholders" and "Share Ownership of Directors and Officers" in the Company's definitive Proxy Statement on Schedule 14A for the 2024 Annual Meeting of Shareholders, to be filed by the Company with the Securities and Exchange Commission not later than 120 days after the end of the Company's fiscal year pursuant to Regulation 14A.

 

Equity Compensation Plan Information

 

The following table provides information as of December 31, 2023 about the Company’s common shares that may be issued upon exercise of options, warrants and rights granted, and shares remaining available for issuance, under the Company’s existing equity compensation plans, including the Company’s 2023 Omnibus Equity Plan.

 

		(a)				(b)				(c)
Plan category		Number of securities to be issued upon exercise of outstanding options, warrants and rights				Weighted-average exercise price of outstanding options, warrants and rights				Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))(1)
Equity compensation plans approved by security holders			2,700				-				350,000
Equity compensation plans not approved by security holders			-				-				-
Total			2,700				-				350,000

 

 

1.

This amount reflects that the total amount of Class A Common Shares available for issuance under the 2023 Omnibus Equity Plan at December 31, 2023.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. 

 

The information required by this Item 13 is incorporated by reference to the information set forth under the caption "Transactions with Management" in the Company's definitive Proxy Statement on Schedule 14A for the 2024 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission not later than 120 days after the end of the Company's fiscal year pursuant to Regulation 14A.

 

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. 

 

The information required by this Item 14, which includes the fees of the Company’s principal accountants, Meaden & Moore, Ltd. (PCAOB ID 314), is incorporated by reference to the information set forth under the caption "Independent Public Accountants" in the Company's definitive Proxy Statement on Schedule 14A for the 2024 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission not later than 120 days after the end of the Company's fiscal year pursuant to Regulation 14A.

 

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PART IV

 

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES. 

 

 

(a) (1) FINANCIAL STATEMENTS 

 

The following Consolidated Financial Statements of the Registrant and its subsidiaries are included in Part II, Item 8:

 

Report of Independent Registered Public Accounting Firm	23
Consolidated Balance Sheet - As of December 31, 2023 and 2022	25
Consolidated Statement of Income – Fiscal Years Ended December 31, 2023 and December 31, 2022	26
Consolidated Statement of Stockholders' Equity - Fiscal Years Ended December 31, 2023 and December 31, 2022	27
Consolidated Statement of Cash Flows – Fiscal Years Ended December 31, 2023 and December 31, 2022	28
Notes to Consolidated Financial Statements	29

 

(a) (2) FINANCIAL STATEMENT SCHEDULES 

 

The Consolidated Financial Statement Schedules of the Registrant and its subsidiaries are included in Item 15 hereof.

 

 

ITEM 16. FORM 10-K SUMMARY.

 

None.

 

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SEQUENTIAL PAGE 

 

Schedule II - Valuation and Qualifying Accounts

 

All other Schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted.

 

 

(a) (3) EXHIBITS 

Reference is made to the Exhibit Index set forth herein.

 

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EXHIBIT INDEX

EXHIBIT NO.:	DOCUMENT
1	Computation of Net Income Per Common Share.
2.1(a)	Asset Purchase Agreement dated January 10, 2022, by and among Crawford REV Acquisition Company LLC and the Reverso Seller Parties (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K as filed with the Commission on January 13, 2022).
2.1(b)	Asset Purchase Agreement dated January 10, 2022, by and among Crawford SEP Acquisition Company LLC and the Separ Seller Parties (incorporated by reference to the appropriate exhibit to the Company’s Form 8-K as filed with the Commission on January 13, 2022).
2.1(c)	Asset Purchase Agreement dated May 1, 2022, by and among Knitting Machinery Company of America LLC and the Seller Parties named therein (incorporated by reference to the appropriate exhibit to the Company’s Form 8-K as filed with the Commission on May 2, 2022).
2.1(d)	Asset Purchase Agreement dated January 3, 2024, by and among Heany Industries, LLC, Heany Industries, Inc., S. Scott Zolnier and 249 Briarwood Lane LLC (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K as filed with the Commission on January 8, 2024).
3.1	Amendment to Amended and Restated Articles of Incorporation (incorporated herein by reference to the appropriate exhibit to the Company’s Form 8-K as filed with the Commission on May 21, 2019).
3.2	Amended and Restated Articles of Incorporation (incorporated herein by reference to the appropriate exhibit to the Company's Form 10-K as filed with the Commission on January 14, 2013).
3.3	Second Amended and Restated Code of Regulations (incorporated herein by reference to the appropriate exhibit to the Company’s Form 8-K as filed with the Commission on May 21, 2019).
4.1	Description of Securities Registered Under the Exchange Act.

 

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10(a)	Revolving Credit Agreement, dated June 3, 2016 between the Company and First Francis Company Inc. (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K filed with the Commission on June 7, 2016).
10(b)	Revolving Credit Promissory Note, dated June 3, 2016, between the Company and First Francis Company Inc. (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K filed with the Commission on June 7, 2016).
10(c)	Revolving Credit Promissory Note, dated June 27, 2016, between the Company and First Francis Company Inc. (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K filed with the Commission on June 30, 2016).
10(d)	First Amendment to Promissory Note entered into as of July 5, 2018 between Hickok Incorporated and First Francis Company, Inc. with respect to Promissory Note in the original principal amount of $2,000,000. (incorporated herein by reference to the appropriate exhibit to the Company’s Form 8-K filed with the Commission on July 11, 2018).
10(e)	First Amendment to Promissory Note entered into as of July 5, 2018 between Hickok Incorporated and First Francis Company, Inc. with respect to Promissory Note in the original principal amount of $2,768,662. (incorporated herein by reference to the appropriate exhibit to the Company’s Form 8-K filed with the Commission on July 11, 2018).
10(f)	Amended and Restated 2013 Omnibus Equity Plan (incorporated herein by reference to the appropriate exhibit to the Company’s Form 8-K as filed with the Commission on May 14, 2019).
10(g)	Credit Agreement, dated June 1, 2017, as amended by that certain First Amendment Agreement, dated as of July 5, 2018, that certain Second Amendment Agreement, dated as of September 30, 2019, that certain Third Amendment Agreement, dated as of December 30, 2019, that certain Fourth Amendment Agreement, dated as of January 15, 2021, that certain Fifth Amendment Agreement, dated as of March 2, 2021, that certain Sixth Amendment Agreement, dated as of June 12, 2023, and that certain Seventh Amendment Agreement, dated as of November 27, 2023, among Crawford United Corporation, the other Borrowers referenced therein, and JPMorgan Chase Bank, N.A. (incorporated herein by reference to the appropriate exhibit to the Company’s Form 8-K as filed with the Commission on December 1, 2023).
10(h)	Separation Agreement and General Release of Claims entered into March 31, 2023 between Crawford United Corporation and John P. Daly (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K filed with the Commission on April 4, 2023).**
10(i)	Crawford United Corporation 2023 Omnibus Equity Plan (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K filed with the Commission on November 21, 2023).**
10(j)	Form of Restricted Shares Award Agreement for Employees under the 2023 Omnibus Equity plan (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K filed with the Commission on November 21, 2023).**
10(k)	Form of Common Shares Award Agreement for Directors under the 2023 Omnibus Equity Plan (incorporated herein by reference to the appropriate exhibit to the Company's Form 8-K filed with the Commission on November 21, 2023).**
14	Crawford United Corporation Financial Code of Ethics for the Chief Executive Officer and Specified Financial Officers.
21	Subsidiaries of the Registrant.
23	Consent of Independent Registered Public Accounting Firm.
31.1	Rule 13a-14(a)/15d-14(a)Certification by the Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a)Certification by the Chief Financial Officer.
32.1	Certification by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Taxonomy Extension Calculation
101.DEF*	Inline XBRL Extension Definition
101.LAB*	Inline XBRL Taxonomy Extension Labels
101.PRE*	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

 

	*XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
	**Management contract, compensation plan or arrangement.

 

The following pages contain the Consolidated Financial Statement Schedules as specified for Item 8 of Part II of Form 10-K.

 

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	CRAWFORD UNITED CORPORATION
	By: /s/ Brian E. Powers Brian E. Powers President and Chief Executive Officer Date: March 5, 2024

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated and on the 5th day of March, 2024:

 

 

	SIGNATURE:	TITLE
	/s/ Brian E. Powers	President and Chief
	Brian E. Powers	Executive Officer and Director
		(Principal Executive Officer)
	/s/ Jeffrey J. Salay	Vice President and Chief Financial Officer
	Jeffrey J. Salay	(Principal Financial and Accounting Officer)
	/s/ Edward F. Crawford	Chairman
	Edward F. Crawford
	/s/ Matthew V. Crawford	Director
	Matthew V. Crawford
	/s/ Steven H. Rosen	Director
	Steven H. Rosen
	/s/ Kirin M. Smith	Director
	Kirin M. Smith
	/s/ James W. Wert	Director
	James W. Wert
	/s/ Luis E. Jimenez	Director
	Luis E. Jimenez

 

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CRAWFORD UNITED CORPORATION

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

 

						Additions
		Balance at				Charged to
		Beginning				Costs and								Balance at
Description		of Period				Expenses				Deductions				End of Period
Year Ended December 31, 2022
Reserve for doubtful accounts		$	75,390			$	68,241			$	-			$	143,631
Reserve for inventory obsolescence			452,607				905,340				-				1,357,947
Reserve for product warranty			30,383				432,906				(398,289	)			65,000
Valuation allowance for deferred taxes			47,319				-				(8,319	)			39,000
Reserve for uncertain tax positions		$	590,000			$	-			$	(414,000	)		$	176,000
Year Ended December 31, 2023
Reserve for doubtful accounts		$	143,631			$	-			$	(38,408	)		$	105,223
Reserve for inventory obsolescence			1,357,947				58,000				(738,167	)			677,780
Reserve for product warranty			65,000				709,409				(571,796	)			202,613
Valuation allowance for deferred taxes			39,000				-				(6,000	)			33,000
Reserve for uncertain tax positions		$	176,000			$	-			$	(121,000	)		$	55,000

 

58

Exhibit 1

 

CRAWFORD UNITED
CONSOLIDATED STATEMENT OF COMPUTATION OF EARNINGS
PER COMMON SHARE AND SHARE EQUIVALENTS

 

		December 31,				December 31,
Years Ended,		2023				2022
NET INCOME
Net income applicable to common shares for basic earnings per share		$	13,294,793			$	6,561,403
Net Income applicable to common shares for diluted earnings per share		$	13,294,793			$	6,561,403
SHARES OUTSTANDING
Weighted average shares for basic earnings per share			3,507,883				3,462,868
Unvested Restricted Stock Awards			18,953				-
Total shares for diluted earnings per share			3,526,836				3,462,868
Basic Earnings Per Common Share		$	3.79			$	1.89
Diluted Earnings Per Common Share		$	3.77			$	1.89

 

* Net effect of stock options was antidilutive for the period.

 

 

Exhibit 4.1

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

 

Crawford United Corporation (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: its Class A common shares, without par value (“Class A common shares”).

 

The rights of the holders of the Class A common shares are governed by the Ohio Revised Code, the Company’s Amended and Restated Articles of Incorporation and the Company’s Second Amended and Restated Code of Regulations, each of which is filed as an exhibit to the Annual Report on Form 10-K of which this exhibit is a part, and each of which may be amended from time to time. The following summary is qualified by reference to the Amended and Restated Articles of Incorporation, the Second Amended and Restated Regulations and applicable provisions of Ohio law.

 

General. The Company is authorized to issue 10,000,000 Class A common shares, no par value, 2,500,000 Class B common shares, no par value, and 1,000,000 serial preferred shares, no par value.

 

Voting. Class A common shares have one vote per share and Class B common shares have three votes per share, except under certain circumstances such as voting on voluntary liquidation and sale of substantially all of the Company’s assets.

 

Dividends. Holders of Class A and Class B common shares are entitled to dividends when and as declared by our Board of Directors out of funds legally available for dividends. Dividends of up to $0.10 per year, noncumulative, must be paid on the Class A common shares before any dividends may be paid on the Class B common shares. We do not currently pay any cash dividends and are not currently planning to pay cash dividends in the near future.

 

Liquidation. Upon a liquidation of the Company, our creditors and holders of our serial preferred shares with preferential liquidation rights will be paid before any distribution to holders of our common shares. The holders of common shares would be entitled to receive a pro rata distribution per share of any excess amount.

 

Serial Preferred Shares. Our Amended and Restated Articles of Incorporation empower our Board of Directors to issue up to 1,000,000 serial preferred shares from time to time in one or more series. Our Board of Directors may fix the voting powers, full or limited, or no voting powers, and such designations, preferences and relative participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including, without limitation thereof, dividend rights, special voting rights, conversion rights, redemption privileges and liquidation preferences and the number of shares constituting any additional series or the designation of the series. Terms selected could decrease the amount of earnings and assets available for distribution to holders of our common shares or adversely affect the rights and powers, including voting rights, of the holders of our common shares without any further vote or action by the shareholders. The rights of holders of common shares will be subject to, and may be adversely affected by, the rights of the holders of any serial preferred shares that may be issued by us in the future. The issuance of serial preferred shares could have the effect of delaying or preventing a change in control of us or make removal of management more difficult. Additionally, the issuance of serial preferred shares may have the effect of decreasing the market price of our common shares and may adversely affect the voting and other rights of the holders of common shares.

 

Anti-takeover Effects of Our Amended and Restated Articles of Incorporation and Our Second Amended and Restated Code of Regulations. Our Amended and Restated Articles of Incorporation and Second Amended and Restated Code of Regulations contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our Board of Directors and that may have the effect of delaying, deferring or preventing a future takeover or change in control of the Company unless that takeover or change in control is approved by our Board of Directors.

 

These provisions include:

 

Action by Written Consent. Our Second Amended and Restated Code of Regulations provides that shareholder action may be taken by written consent in lieu of a meeting of shareholders, provided such action is authorized by a writing or writings signed by all of the shareholders who would be entitled to notice of a meeting for such purpose.

 

Authorized but Unissued Shares. Our authorized but unissued common shares and serial preferred shares are available for future issuance without shareholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued common shares and serial preferred shares could render more difficult or discourage an attempt to obtain control of a majority of our common shares by means of a proxy contest, tender offer, merger or otherwise.

 

Limitations on Liability and Indemnification of Officers and Directors. Our Second Amended and Restated Code of Regulations limits the liability of our directors to the fullest extent permitted by the Ohio General Corporation Law and provides that we will indemnify our directors and officers to the fullest extent permitted by such law.

 

Transfer Agent and Registrar. The transfer agent and registrar for our Class A common shares is Computershare, Inc., 462 South 4th Street, Suite 1600, Louisville, KY 40202.

 

 

Exhibit 14

 

CRAWFORD UNITED

FINANCIAL CODE OF ETHICS
FOR THE
CHIEF EXECUTIVE OFFICER AND
SPECIFIED FINANCIAL OFFICERS

 

This Crawford United Financial Code of Ethics applies to Crawford United’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. Crawford United expects all of its employees to act with personal and professional integrity in all aspects of their employment, to comply with all applicable laws, rules and regulations, to deter wrongdoing and to abide by Crawford United’s other policies and procedures that govern the conduct of Crawford United employees. This Financial Code of Ethics is intended to supplement Crawford United’s other policies and procedures.

You shall:

(1)    Engage in and promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2)    Produce full, fair, accurate, timely, and understandable disclosure in reports and documents that Crawford United files with, or submits to, the Securities and Exchange Commission and other regulators and in other public communications made by Crawford United;

(3)    Comply with applicable governmental laws, rules and regulations, as well as the rules and regulations of self-regulatory organizations of which Crawford United is a member;
 
(4)    Promptly report any possible violation of this Financial Code of Ethics to the Chairman of the Audit Committee; and

(5)    Take all reasonable measures to protect the confidentiality of non-public, proprietary information about Crawford United and its customers obtained or created in connection with your activities and to prevent the unauthorized disclosure of such information unless required by applicable law or regulation or legal or regulatory process.

You understand that you are prohibited from directly or indirectly taking any action to fraudulently influence, coerce, manipulate or mislead Crawford United’s independent public accountants for the purpose of rendering the financial statements of Crawford United misleading.

You further understand that you will be held accountable for your adherence to this Financial Code of Ethics. Your failure to observe the terms of this Financial Code of Ethics may result in disciplinary action. Violations of this Financial Code of Ethics also may constitute violations of law and may result in civil and criminal penalties for you and/or Crawford United.

 

 

Exhibit 21

 

CRAWFORD UNITED

 

Subsidiaries of Registrant

 

COMPANY NAME	STATE OF INCORPORATION
Crawford AE LLC	Ohio
CAD Enterprises, Inc.	Arizona
Data Genomix LLC	Ohio
Federal Hose Manufacturing LLC	Ohio
Global-Tek Manufacturing LLC	Puerto Rico
Komtek Forge LLC	Massachusetts
Global-Tek Colorado*	Delaware
Marine Products International LLC	Ohio
Supreme Electronics Corp.**	Mississippi
Knitting Machinery Company of America, LLC	Ohio
Waekon Corporation**	Ohio
Reverso Pumps LLC	Florida
Separ America LLC	Florida
Emergency Hydraulics LLC	Florida

 

*Formerly named MTA Acquisition Company LLC

**inactive

 

 

Exhibit 23

 

 

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-125672, 333-215433, 333-238802, 333-275698) of Crawford United Corporation (the "Company") of our report dated March 4, 2024, relating to the consolidated financial statements and financial statement schedules, which appear in this Form 10-K.

 

 

/s/ MEADEN & MOORE, LTD.

 

 

Meaden & Moore, Ltd.   

Cleveland, Ohio

 

March 4, 2024

 

 

Exhibit 31.1

 

RULE 13a-14(a)/15d-14(a) CERTIFICATION

 

 

I, Brian E. Powers, certify that:

 

1.

I have reviewed this annual report on Form 10-K of Crawford United (the "registrant");

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

By:

 

/s/ Brian E. Powers

 

Brian E. Powers

 

President and Chief Executive Officer

 

March 5, 2024

 

 

Exhibit 31.2

 

RULE 13a-14(a)/15d-14(a) CERTIFICATION

 

 

I, Jeffrey J. Salay, certify that:

 

1.

I have reviewed this annual report on Form 10-K of Crawford United (the "registrant");

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

By:

 

/s/ Jeffrey J. Salay

 

Jeffrey J. Salay

 

Chief Financial Officer

 

March 5, 2024

 

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

 

18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO

 

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Annual Report of Crawford United (the "Company") on Form 10-K for the period ending December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Brian Powers, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

/s/ Brian E. Powers

 

Brian E. Powers

 

President and Chief Executive Officer

 

March 5, 2024

 

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

 

18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO

 

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Annual Report of Crawford United (the "Company") on Form 10-K for the period ending December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jeffrey J. Salay, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

/s/ Jeffrey J. Salay

 

Jeffrey J. Salay

 

Chief Financial Officer

 

March 5, 2024

 

 

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2023	Mar. 04, 2024	Jun. 30, 2023
Document Information [Line Items]
Entity Central Index Key	0000047307
Entity Registrant Name	CRAWFORD UNITED Corp
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	000-000147
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-0288470
Entity Address, Address Line One	10514 Dupont Avenue
Entity Address, City or Town	Cleveland
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44108
City Area Code	216
Local Phone Number	243-2614
Title of 12(g) Security	Class A Common Shares, without par value
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 19,600,825
Auditor Name	Meaden & Moore, Ltd.
Auditor Location	Cleveland, Ohio
Auditor Firm ID	314
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		731,848
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,809,219

Consolidated Balance Sheets - USD ($)	Dec. 31, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 1,647,175	$ 1,247,627
Accounts receivable less allowance for doubtful accounts	19,671,833	21,884,807
Contract assets	4,822,347	3,284,301
Inventories less allowance for obsolete inventory	17,672,622	20,176,142
Investments	665,301	657,971
Prepaid expenses and other current assets	1,303,780	1,522,516
Total Current Assets	45,783,058	48,773,364
Property, plant and equipment, net	14,686,190	15,213,443
Operating right of use asset, net	8,356,903	9,524,280
OTHER ASSETS:
Goodwill	16,453,049	16,231,938
Intangibles, net of accumulated amortization	8,252,600	9,492,560
Other non-current assets	107,798	362,489
Total Non-Current Assets	24,813,447	26,086,987
Total Assets	93,639,598	99,598,074
CURRENT LIABILITIES:
Notes payable – current	824,226	1,303,972
Bank debt – current	0	222,222
Operating lease liabilities - current	1,714,174	1,705,224
Accounts payable	11,168,308	14,017,973
Unearned revenue	5,596,706	4,354,868
Accrued income taxes	539,876	1,239,289
Accrued expenses	3,292,787	3,224,188
Total Current Liabilities	23,136,077	26,067,736
LONG-TERM LIABILITIES:
Bank debt	5,096,672	19,224,318
Operating lease liabilities - noncurrent	6,901,043	8,060,152
Deferred income taxes	310,250	1,384,558
Total Long-Term Liabilities	12,778,174	30,515,433
STOCKHOLDERS' EQUITY
Contributed capital	1,741,901	1,741,901
Treasury shares	(2,237,026)	(2,125,252)
Retained earnings	47,875,964	34,581,171
Total Stockholders' Equity	57,725,347	43,014,905
Total Liabilities and Stockholders' Equity	93,639,598	99,598,074
Common Class A [Member]
STOCKHOLDERS' EQUITY
Class A common shares - 10,000,000 shares authorized, 2,832,966 issued at December 31, 2023 and 2,791,449 issued at December 31, 2022	8,878,986	7,351,563
Common Class B [Member]
STOCKHOLDERS' EQUITY
Class A common shares - 10,000,000 shares authorized, 2,832,966 issued at December 31, 2023 and 2,791,449 issued at December 31, 2022	1,465,522	1,465,522
Notes Payable Excluding Paycheck Protection Program Cares Act [Member]
LONG-TERM LIABILITIES:
Notes Payable, Noncurrent	$ 470,209	$ 1,846,405

Consolidated Balance Sheets (Parentheticals) - shares	Dec. 31, 2023	Dec. 31, 2022
Common Class A [Member]
Common Stock, Shares Authorized (in shares)	10,000,000	10,000,000
Common Stock, Shares, Issued (in shares)	2,832,966	2,791,449
Treasury Stock, issued (in shares)	54,074	47,412
Common Class B [Member]
Common Stock, Shares Authorized (in shares)	2,500,000	2,500,000
Common Stock, Shares, Issued (in shares)	914,283	914,283
Treasury Stock, issued (in shares)	182,435	182,435

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Total sales	$ 143,885,934	$ 127,754,927
Cost of Sales	106,239,852	100,722,146
Gross Profit	37,646,082	27,032,781
Operating Expenses:
Selling, general and administrative expenses	19,713,611	18,499,309
Operating Income	17,932,471	8,533,472
Other (Income) and Expenses:
Interest charges	1,255,984	1,138,224
Loss (Gain) on investments in equity securities	(7,330)	860,273
Other (income) expense, net	(480,331)	(1,197,218)
Total Other (Income) and Expenses	768,323	801,279
Income before Provision for Income Taxes	17,164,148	7,732,194
Income tax expense	3,869,355	1,170,791
Net Income	$ 13,294,793	$ 6,561,403
Net Income Per Common Share - Basic (in dollars per share)	$ 3.79	$ 1.89
Net Income Per Common Share - Diluted (in dollars per share)	$ 3.77	$ 1.89
Basic (in shares)	3,507,883	3,462,868
Diluted (in shares)	3,526,836	3,462,868

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class B [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member] Common Class A [Member]	Treasury Stock, Common [Member] Common Class B [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2021	$ 5,393,823	$ 1,465,522	$ 1,741,901			$ (1,981,113)	$ 28,019,768	$ 34,639,901
Stock Awards to Directors and Officers	957,728	0	0			0	0	957,728
Acquisition	1,000,012	0	0			0	0	1,000,012
Share repurchase	0	0	0			(144,139)	0	(144,139)
Net income	0	0	0			0	6,561,403	6,561,403
Balance at Dec. 31, 2022	$ 7,351,563	$ 1,465,522	$ 1,741,901			$ (2,125,252)	$ 34,581,171	$ 43,014,905
Balance (in shares) at Dec. 31, 2021	2,720,787	914,283	41,844			182,435	2,678,943	731,848
Class A shares issued to Directors and employees related to stock compensation plans (in shares)	32,200	0	0			0	32,200	0
Acquisition (in shares)	38,462	0	0			0	38,462	0
Share repurchase (in shares)	0	0	5,568	5,568	0	0	5,568	0
Share repurchase (in shares)	0	0	(5,568)	(5,568)	0	0	(5,568)	0
Balance (in shares) at Dec. 31, 2022	2,791,449	914,283	47,412			182,435	2,744,037	731,848
Stock Awards to Directors and Officers	$ 1,377,423	$ 0	$ 0			$ 0	$ 0	$ 1,377,423
Share repurchase	0	0	0			(111,774)	0	(111,774)
Net income	0	0	0			0	13,294,793	13,294,793
Stock issuance (see note 6)	150,000	0	0			0	0	150,000
Balance at Dec. 31, 2023	$ 8,878,986	$ 1,465,522	$ 1,741,901			$ (2,237,026)	$ 47,875,964	$ 57,725,347
Class A shares issued to Directors and employees related to stock compensation plans (in shares)	34,700	0	0			0	34,700	0
Share repurchase (in shares)	0	0	6,662	6,662	0	0	6,662	0
Share repurchase (in shares)	0	0	(6,662)	(6,662)	0	0	(6,662)	0
Stock issuance (see note 6) (in shares)	7,317	0	0			0	7,317	0
Stock forfeit (in shares)	(500)	0	0			0	(500)	0
Balance (in shares) at Dec. 31, 2023	2,832,966	914,283	54,074			182,435	2,778,892	731,848

Consolidated Statements of Cash Flow - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash Flows from Operating Activities
Net Income	$ 13,294,793	$ 6,561,403
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,921,740	3,750,805
Loss (Gain) on investments in equity securities	(7,330)	860,273
Reduction in carrying amount of RoU assets	1,720,844	1,706,810
Loss (Gain) on disposal of assets	(3,988)	16,930
Write off of contingent liability	0	(750,000)
Share-based compensation expense	1,377,423	957,728
Deferred income taxes	(1,074,308)	(1,872,770)
Changes in assets and liabilities:
Accounts receivable	2,212,974	(2,745,949)
Inventories	2,355,929	(2,772,375)
Contract assets	(1,538,046)	(1,173,244)
Prepaid expenses & other current assets	218,736	(373,139)
Right of use assets	(457,317)	(2,232,314)
Other noncurrent assets	254,691	(265,166)
Accounts payable	(2,849,665)	1,981,556
Lease liabilities	(1,150,159)	538,067
Accrued income taxes	(699,413)	2,555,884
Other current liabilities	(27,551)	204,050
Unearned revenue	1,241,838	1,097,850
Total adjustments	5,496,398	1,484,996
Net Cash Provided by Operating Activities	18,791,191	8,046,399
Cash Flows from Investing Activities
Cash paid for business acquisitions	0	(4,331,739)
Capital expenditures	(2,032,773)	(742,828)
Net Cash Used in Investing Activities	(2,032,773)	(5,074,567)
Cash Flows from Financing Activities
Payments on related party notes	(1,855,942)	(4,071,885)
Payments on bank debt	(21,667,362)	(7,120,834)
Borrowings on bank debt	7,276,208	8,868,238
Payments on contingent liability	0	(750,000)
Share repurchase	(111,774)	(144,139)
Net Cash Used in Financing Activities	(16,358,870)	(3,218,620)
Net Increase (Decrease) in cash and cash equivalents	399,548	(246,788)
Cash and cash equivalents at beginning of period	1,247,627	1,494,415
Cash and cash equivalents at end of period	1,647,175	1,247,627
Supplemental disclosures of cash flow information
Interest paid	1,220,439	1,060,483
Income taxes paid	5,599,745	582,883
Supplemental disclosures of noncash financing and investing activity
Additions to ROU assets obtained from new operating lease liabilities	457,317	2,232,314
Purchase accounting adjustment to Goodwill for a change in inventory	147,591	0
Purchase accounting adjustment to Goodwill for a change in fixed assets	73,520	0
Issuance of Class A common shares in business acquisition	0	1,000,012
Issuance of Class A common shares for capital expenditures	$ 150,000	$ 0

Note 1 - Basis of Presentation	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Basis of Accounting [Text Block]	1.   BASIS OF PRESENTATION   The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) and with the instructions to Form 10-K and Article 8 of Regulation S-X. The consolidated financial statements include the accounts of Crawford United Corporation and its wholly-owned subsidiaries (the “Company”). Significant intercompany transactions and balances have been eliminated in the financial statements.   During the year ended December 31, 2023, there have been no changes to the Company's significant accounting policies.

Note 2 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Significant Accounting Policies [Text Block]	2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard was effective for smaller reporting companies for fiscal years beginning after December 15, 2022. The Company has fully adopted the standard with no material impact to the financial statements.    In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU enhances reportable segment disclosures on both an annual and interim basis primarily in regards to the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure(s) of segment profit or loss. In addition, the ASU requires disclosure, by segment, of other items included in the reported measure(s) of segment profit or loss, including qualitative information describing the composition, nature and type of each item. The ASU also expands disclosure requirements related to the CODM, including how the reported measure(s) of segment profit or loss are used to assess segment performance and allocate resources, the method used to allocate overhead for significant segment expenses and others. Lastly, all current required annual segment reporting disclosures under Topic 280 are now effective for interim periods. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this ASU.   In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU enhances income tax disclosures by providing information to better assess how an entity’s operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, local and foreign jurisdictions. This ASU is effective for fiscal years and interim periods beginning after December 15, 2024. The Company is evaluating the impact of adopting this ASU.   Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts of certain assets and liabilities and disclosure of contingencies at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.   Fair Value of Financial Instruments Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.   Fair Value Measurements As defined in FASB ASC 820, "Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:   * Level 1: Quoted market prices in active markets for identical assets or liabilities.   * Level 2: Inputs to the valuation methodology include:   - Quoted prices for similar assets or liabilities in active markets;   - Quoted prices for identical assets or similar assets or liabilities in inactive markets;   - Inputs other than quoted prices that are observable for the asset or liability;   - Inputs that are derived principally from or corroborated by observable market data by correlation or other means.   * Level 3: Unobservable inputs that are not corroborated by market data.   A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.   The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.   Investments in stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level 1 investment.   Concentration of Credit Risk The Company sells its products and services primarily to customers in the United States of America and to a lesser extent overseas. All sales are made in U.S. dollars. The Company extends normal credit terms to its customers. For the year ended December 31, 2023, sales to nine customers in the Commercial Air Handling Equipment segment were 18.9% of consolidated sales of the Company, while sales to nine customers in the Industrial and Transportation Products segment accounted for 23.2% of consolidated sales. For the year ended December 31, 2022, sales to nine customers in the Commercial Air Handling Equipment segment were 17.0% of consolidated sales of the Company, while nine customers in the Industrial and Transportation Products segment accounted for 22.5% of consolidated sales.   Revenue Recognition The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of the revenue standard is that a company should recognize revenue by analyzing the following five steps: (1) Identify the contract with the customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations; and 5) Recognize revenue when (or as) each performance obligation is satisfied. The Company primarily receives fixed consideration for sales of product. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. Costs incurred to obtain a contract will be expensed as incurred when the amortization period is less than a year. Shipping and handling amounts paid by customers are included in revenue. Sales tax and other similar taxes are excluded from revenue.   Contract Performance Obligations: To determine proper revenue recognition, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether a combined or single contract should be accounted for as more than one performance obligation. This evaluation sometimes requires judgment, and the decision to combine contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to contain a single performance obligation if the promise to transfer individual goods or services is not separately identifiable from other promises in the contracts primarily because the Company provides a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple performance phases of the product lifecycle (development, construction, maintenance and support) are typically considered to have multiple performance obligations even when they are part of a single contract. The Company provides warranties, as well as limited workmanship warranties, to customers. These warranties are included in the sale, and do not provide customers with a service in addition to assurance of compliance with agreed upon specifications. The Company does not consider these assurance-type warranties to be separate performance obligations.   Construction Contracts The Company recognizes revenue on construction contracts over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. The customer typically controls the work in process, as evidenced by the contract.   The Company’s construction contracts are generally accounted for as a single performance obligation, since the Company is providing a significant service of integrating components into a single project. The Company recognizes revenue using a cost-based input method, by which actual costs incurred relative to total estimated contract costs determine, as a percentage, progress toward contract completion. This percentage is applied to the transaction price to determine the amount of revenue to recognize. The Company believes the cost-based input method is the best depiction of performance, because it directly measures the value of the services transferred to the customer. Revenues on uninstalled materials are recognized when control is transferred to the customer, which does not necessarily equate to when the cost is incurred.   If based on a lack of reliable information, progress cannot be reasonably measured, recognition of revenues (but not costs) is deferred until progress can be reliably measured. If, however, the Company expects that total costs will be recovered, revenues are recognized equal to costs incurred until the Company can reliably measure progress. There were no contracts that were unable to be reasonably measured at December 31, 2023 and 2022.   Revenues on uninstalled materials are recognized when control is transferred to the customer, which does not necessarily equate to when the cost is incurred. Under limited circumstances (e.g., transfer of control occurs significantly after services are provided, the cost of the materials is significant), revenue is recognized, but no profit is recognized, on certain uninstalled third-party materials when the cost is incurred.   Because the Company almost always acts as a principal in contracts, revenues are recognized gross. The Company is considered the principal because the Company controls the contractually specified goods and services before they are transferred to the customer. The payment terms of the Company’s construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as the Company expects to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.   The payment terms of the Company’s construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as the Company expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.   Contract Assets Contract assets are related to the Commercial Air Handling segment. A contract asset is recorded when revenue is recognized in advance of the right to receive consideration (i.e., the Company must perform additional services in order to receive consideration). Amounts are recorded as receivables when the right to consideration is unconditional. When consideration is received, or the Company has an unconditional right to consideration in advance of delivery of goods or services, a contract liability would be recorded.   Contract Estimates Due to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is subject to many variables and requires significant judgment. Since a significant change in one or more of these variables could affect the profitability of contracts, the Company reviews and updates contract-related estimates regularly through a review process in which the Company reviews the progress and execution of performance obligations and the estimated cost at completion.   The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, a provision for the entire loss is recognized in the period it is identified.   Contract Modifications Contract modifications are routine in the performance of the Company’s contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract.   Variable Consideration The nature of the Company’s contracts can, but typically do not, give rise to several types of variable consideration, including claims, unpriced change orders, and liquidated damages and penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount.   Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on assessment of legal enforceability, past performance, and all information (historical, current, and forecasted) that is reasonably available to the Company.   Cost and Expense Recognition Contract costs include all direct labor, materials, subcontractor, and equipment costs, and those indirect costs related to contract performance, such as indirect labor, tools and supplies. For construction contracts, costs are generally recognized as incurred. Under certain circumstances, costs incurred in the period related to future activity on contracts may be capitalized.   Costs incurred that do not contribute to satisfying performance obligations are excluded from the cost input calculation for revenue recognition. Excluded costs include both uninstalled materials and abnormal costs. Abnormal costs comprise wasted materials, wasted or rework labor and other resources to fulfill a contract that were not reflected in the price of the contract. A limited allowance for material overages and labor inefficiencies is typically included in our contract costs estimates (and by extension in the contract price).   For construction contracts, when it is probable that the total contract costs will exceed total contract revenues, a provision for the estimated expected loss is recorded. As long-term contracts extend over one or more years, revisions in costs and profits estimated during the course of the work are reflected in the accounting period in which the facts requiring the changes become known. Contracts which are substantially complete are considered closed for financial statement purposes.   Unearned Revenue Unearned revenue consists of customer deposits and contract liabilities related to the Commercial Air Handling Equipment segment.  Unearned revenue for the year ended  December 31, 2022 was $4,354,868, substantially all of this unearned revenue was recognized in 2023   Disaggregation of Revenue Revenue earned over time compared to at a point in time is as follows for the years ended December 31, 2023 and 2022.       December 31,       2023     2022                     Earned over time   $ 59,572,611     $ 50,236,873   Point in time     84,313,323       77,518,054   Total revenue   $ 143,885,934     $ 127,754,927     Deferred Commissions Commissions are earned based on the status of the contract. Commissions are paid upon receipt of payment for units shipped.   Product Warranties The Company provides a warranty for its custom air handling business covering parts for 12 months from startup or 18 months from shipment, whichever comes first. The warranty reserve is maintained at a level which, in management’s judgment, is adequate to absorb potential warranties incurred. The amount of the reserve is based on management’s knowledge of the contracts and historical trends. Because of the uncertainties involved in the contracts, it is reasonably possible that management’s estimates may change in the near term. However, the amount of change that is reasonably possible cannot be precisely estimated at this time. There are no material warranty obligations outside of the air handling business.   Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. From time to time the Company maintains cash balances in excess of the FDIC limits.   Accounts Receivable The Company recognizes an allowance for losses on accounts receivable in an amount equal to the current expected credit losses. The estimation of the allowance is based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and reasonable and supportable expectation of future conditions, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for expected credit losses is recognized in selling, general and administrative expenses   Inventory Inventories are valued using the first-in, first-out (“FIFO”) method; stated at the lower of cost or net realizable value; and are reduced by an allowance for obsolete and slow-moving inventories. The allowance is estimated based on management’s review of inventories on hand with minimal sales activity, which is compared to estimated future usage and sales. Inventories identified by management as slow-moving or obsolete are reserved for based on estimated selling prices less disposal costs.    Property, Plant and Equipment Property, plant and equipment are carried at cost. Maintenance and repair costs are expensed as incurred. Additions and betterments are capitalized. The depreciation policy of the Company is generally as follows:           Estimated Useful   Class   Method   Lives (years)               Buildings and Improvements   Straight-line   10 to 40   Machinery and Equipment   Straight-line   3 to 20     Valuation of Long-Lived Assets Long-lived assets such as property, plant and equipment, as well as intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected future undiscounted cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying value of the asset.   Shipping and Handling Costs Shipping and handling costs are classified as cost of product sold.   Income Taxes The provision for income taxes is computed on domestic financial statement income. Where transactions are included in the determination of taxable income in a different year, deferred income tax accounting is used.   The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus any change in deferred taxes during the year. Deferred taxes result from differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The IRS concluded the audit of the 2018 Tax Return on February 3, 2023 and there were no material findings and this matter is considered closed.   Income per Common Share Income per common share information is computed on the weighted average number of shares outstanding during each period.   Goodwill Indefinite-lived intangible assets and Goodwill are tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not (i.e., a likelihood greater than 50%) that the intangible asset or the reporting unit is impaired.   Reclassifications: Certain 2022 financial information has been reclassified to conform to the 2023 presentation.

Note 3 - Accounts Receivable	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	3.    ACCOUNTS RECEIVABLE   The balance of accounts receivable, net was $19.7 million, $21.9 million, and $18.4 million at December 31, 2023, 2022 and 2021, respectively.   The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information relevant to estimating expected credit losses. The reserve for doubtful accounts was $105,223, $143,631 and $75,930 at  December 31, 2023, 2022 and 2021, respectively.

Note 4 - Inventory	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Inventory Disclosure [Text Block]	4.    INVENTORY   Inventory is valued at the lower of cost (first-in, first-out) or net realizable value and consists of the following:       December 31,     December 31,       2023     2022   Raw materials and component parts   $ 3,989,444     $ 2,892,820   Work-in-process     4,514,263       5,158,252   Finished products     9,846,694       13,483,017   Total inventory   $ 18,350,401     $ 21,534,089   Less: inventory reserves     677,779       1,357,947   Net inventory   $ 17,672,622     $ 20,176,142

Note 5 - Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	5.     GOODWILL AND OTHER INTANGIBLE ASSETS   Impairment testing   U.S. GAAP requires that both indefinite-lived intangible assets and Goodwill are tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not (i.e., a likelihood greater than 50%) that the intangible asset or the reporting unit is impaired. During interim periods, ASC 350 requires companies to focus on those events and circumstances that affect the significant inputs used to determine the fair value of the asset group or reporting unit to determine whether an interim quantitative impairment test is required.   The Company performed its annual impairment test for Goodwill and intangible assets as of the last day of the fourth quarter. The Company first assessed certain qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible assets is less than its carrying amount, and whether it is therefore necessary to perform the quantitative impairment test. In 2023, for all reporting units other than CAD Enterprises the qualitative analysis indicated that a quantitative analysis was not necessary. During 2022 a quantitative analysis was performed for Global-Tek as well as CAD. No impairment was identified in the periods presented.   The Goodwill values are presented below:       December 31,     December 31,       2023     2022   Commercial Air Handling Equipment Segment:                 Beginning Balance   $ 478,256     $ 478,256   Acquisitions     -       -   Adjustments     -       -   Ending Balance   $ 478,256     $ 478,256                     Industrial and Transportation Products Segment:                 Beginning Balance   $ 15,753,682     $ 13,926,362   Acquisitions     -       1,997,174   Adjustments     221,111       (169,854 ) Ending Balance   $ 15,974,793     $ 15,753,682                     Total Company:                 Beginning Balance   $ 16,231,938     $ 14,404,618   Acquisitions     -       1,997,174   Adjustments     221,111       (169,854 ) Ending Balance   $ 16,453,049     $ 16,231,938     Goodwill increased by $0.2 million from $16.2 million at  December 31, 2022 to $16.5 million at  December 31, 2023. The increase in Goodwill was driven by a purchase accounting adjustment to Goodwill, recorded in the second quarter of 2023, for Knitting Machinery Company of America (KMC). Goodwill increased by $1.8 million from $14.4 million at   December 31, 2021 to $16.2 million at  December 31, 2022. The increase in Goodwill was driven by the addition of $2.0 million in the Industrial and Transportation Products segment related to the acquisitions of Reverso Pumps & Separ America and KMC and in the first and second quarters of 2022, respectively. These increases were partially offset by a decrease of $0.2 million related to a purchase accounting adjustment for Global-Tek, also in the Industrial and Transportation Products segment.   Intangible assets relate to the purchase of businesses. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is not amortized, but is reviewed on an annual basis for impairment. Amortization of other intangible assets is calculated on a straight-line basis over periods ranging from one year to 15 years. Intangible assets consist of the following:       December 31, 2023     December 31, 2022   Customer list intangibles   $ 9,316,000     $ 9,316,000   Non-compete agreements     200,000       200,000   Trademarks     4,466,899       4,445,649   Total intangible assets     13,982,899       13,961,649   Less: accumulated amortization     5,730,299       4,469,089   Intangible assets, net   $ 8,252,600     $ 9,492,560     Intangible amortization expense was as follows:       December 31, 2023     December 31, 2022                     Accumulated amortization at the beginning of the period   $ 4,469,089     $ 3,203,585   Amortization expense     1,261,210       1,265,504   Accumulated amortization at end of period   $ 5,730,299     $ 4,469,089     Intangible amortization for the next five years is as follows:       Amortization in future periods   2024     1,261,210   2025     1,261,210   2026     933,345   2027     817,298   2028     759,117

Note 6 - Property, Plant and Equipment, Net	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	6.      PROPERTY, PLANT AND EQUIPMENT, NET   Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Property, plant and equipment are as follows:       December 31,     December 31,       2023     2022   Land   $ 231,034     $ 231,034   Buildings and improvements     3,760,203       3,222,243   Machinery & equipment     24,851,703       23,301,660   Total property, plant & equipment     28,842,940       26,754,937   Less: accumulated depreciation     14,156,750       11,541,494   Property plant & equipment, net   $ 14,686,190     $ 15,213,443     During the second quarter of 2023, the Company issued 7,317 Class A Common Shares, valued at $150,000, to Air Power Dynamics, LLC in an arms-length exchange for an aerospace tooling machine. Air Power Dynamics, LLC is controlled by Ambassador Edward Crawford, who is the chairman of the Company's board.   Depreciation expense for the years ended  December 31, 2023 and 2022 was $2,619,244 and $2,398,445, respectively.

Note 7 - Investments in Equity Securities	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	7.  INVESTMENTS IN EQUITY SECURITIES   Investments in equity securities as of  December 31, 2023 and 2022 are summarized in the table below:                       UNREALIZED     REALIZED               BALANCE     ACQUISITIONS,     GAINS     GAINS     BALANCE       AT     DISPOSITIONS     (LOSSES)     (LOSSES)     AT END       BEGINNING     AND     INCLUDED     INCLUDED     OF       OF YEAR     SETTLEMENTS     IN EARNINGS     IN EARNINGS     PERIOD   December 31, 2022   $ 1,518,244     $ -     $ (860,273 )   $ -     $ 657,971                                             Year-to-date December 31, 2023     657,971       -       53,614       (46,284 )     665,301     Investments by fair value level in the hierarchy as of December 31, 2023 and December 31, 2022 are as follows:                       Unobservable               Quoted     Models with     Inputs that               Market     Significant     are not     Total       Prices in     Observable     Corroborated     Carrying       Attractive     Market     by Market     Value in the       Markets     Parameters     Data     Balance       (Level 1)     (Level 2)     (Level 3)     Sheet   Common stock as of December 31, 2023   $ 665,301     $ -     $ -     $ 665,301   Common stock as of December 31, 2022   $ 657,971     $ -     $ -     $ 657,971

Note 8 - Bank Debt and Notes Payable	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Long-Term Debt [Text Block]	8.      BANK DEBT and NOTES PAYABLE The Company is party to a Credit Agreement with JPMorgan Chase Bank, N.A. as lender (as amended, the “Credit Agreement”).   The Company entered into a sixth amendment to the Credit Agreement on  June 12, 2023. The most significant change in the amended Credit Agreement was the discontinued use of LIBOR as a reference rate, with the adoption of the Federal Reserve Bank of New York's Secured Overnight Financing Rate (SOFR) as the primary reference rate. This change was anticipated and aligns with the US Dollar LIBOR panel ceasing on  June 30, 2023.     The Company entered into a seventh amendment to the Credit Agreement on November 27, 2023. The Seventh Amendment to the Credit Agreement, among other things, (a) extends the maturity date of the underlying credit facility from June 1, 2024 to June 1, 2027, (b) increases the maximum annual amount that the Company and its subsidiaries may pay in dividends or other restricted payments to $2,000,000 from $1,250,000, and (c) permits the repurchase by the Company and its subsidiaries of up to $7,000,000 of Company equity prior to June 30, 2024, subject to compliance with certain financial covenants under the Credit Agreement.   A Term Loan A matured  December 1, 2022, and was paid in full on  January 4, 2023.   The revolving facility under the Credit Agreement includes a $3 million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or SOFR (previously LIBOR) plus applicable margins of (i) (0.25%) for Prime Rate loans and (ii) 1.75% for SOFR (previously LIBOR) loans. The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of 0.25% per annum payable quarterly.   The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio.   Bank debt balances consist of the following:       December 31,     December 31,       2023     2022   Term debt   $ -     $ 222,222   Revolving debt     5,112,187       19,281,119   Total Bank debt     5,112,187       19,503,341   Less: current portion     -       222,222   Non-current bank debt     5,112,187       19,281,119   Less: unamortized debt costs     15,515       56,801   Net non-current bank debt   $ 5,096,672     $ 19,224,318     The Company had $24.9 million and $10.7 million available to borrow on the revolving credit facility at December 31, 2023 and 2022, respectively.     Notes Payable – Related Party In connection with the Komtek Forge acquisition, on January 15, 2021, the Company refinanced its previously outstanding First Francis promissory notes in the aggregate amount of $2,077,384, including accrued interest payable through the refinance date and combined this amount with an existing First Francis promissory note carried by Komtek Forge in the amount of $1,702,400 into one note for a combined $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021. The interest rate on the refinanced loan remained at 6.25% per annum. First Francis is owned by Ambassador Edward Crawford and Matthew Crawford, both of whom serve on the Board of Directors of the Company.   Notes Payable – Seller Note Effective  July 1, 2018, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of CAD. Upon the closing of the transaction, the CAD shares were transferred and assigned to the Company in consideration of the payment by the Company of an aggregate purchase price of $21 million, $12 million of which was payable in cash at closing, with the remainder paid in the form of a subordinated promissory note issued by the Company in favor of a Seller (the “Seller Note”). The Seller Note had an interest rate of four percent (4.00%) per annum and the loan was paid in full on  March 31, 2023.   Notes Payable   Notes payable consists of the following:        December 31,     December 31,       2023     2022   In connection with the Komtek Forge acquisition, the Company refinanced its previously outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021 and maturing on October 15, 2025   $ 1,294,435     $ 2,587,877   In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the seller, payable in quarterly installments beginning September 30, 2018. The note was paid in full on March 31, 2023     -       562,500   Total notes payable     1,294,435       3,150,377   Less current portion     824,226       1,303,972   Notes payable – non-current portion   $ 470,209     $ 1,846,405     Principal payments on the notes payable are as follows for the years ended December 31:       Related Party     Total Principal       Notes     Payments                     2024     824,226       824,226   2025     470,209       470,209   2026     -       -   2027     -       -   Total principal payments   $ 1,294,435     $ 1,294,435

Note 9 - Leases	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Lessee, Operating and Finance Leases [Text Block]	9.     LEASES    The Company has operating leases for facilities, vehicles and equipment. These leases have remaining terms of 2 years to 10 years, some of which include options to extend the leases for up to 10 years.  Lease expense for the years ended  December 31, 2023 and 2022 was approximately $2.2 million and $2.0 million, respectively.   Supplemental balance sheet information related to leases:       December 31,     December 31,       2023     2022   Operating leases:                 Operating lease right-of-use assets, net   $ 8,356,903     $ 9,524,280                     Other current liabilities     1,714,174       1,705,224   Operating lease liabilities     6,901,043       8,060,152   Total operating lease liabilities   $ 8,615,217     $ 9,765,376   Weighted Average Remaining Lease Term                 Operating Leases (in years)     7.1       7.7   Weighted Average Discount Rate                 Operating Leases     5.0 %     5.0 %   Future minimum lease payments at December 31, 2023 were as follows:       Operating       Leases   Year Ending December 31,         2024   $ 2,105,239   2025     2,061,125   2026     1,521,090   2027     845,957   2028     636,577   Thereafter     3,059,965   Total future minimum lease payments   $ 10,229,953   Less: imputed interest     (1,614,736 ) Total   $ 8,615,217     Commitments and Contingencies From time to time, the Company is involved in legal matters arising in the ordinary course of business. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will not have an adverse effect on its business, financial condition or results of operations.

Note 10 - Shareholders' Equity	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Equity [Text Block]	10. SHAREHOLDERS’ EQUITY   There are 10,000,000 Class A Shares and 2,500,000 Class B Shares authorized, as well as 1,000,000 Serial Preferred Shares.   Unissued shares of Class A common stock (1,002,848 and 1,002,848 shares at December 31, 2023 and 2022, respectively) are reserved for the share-for-share conversion rights of the Class B common stock. The Class A shares have one vote per share and the Class B shares have three votes per share, except under certain circumstances such as voting on voluntary liquidation, sale of substantially all the assets, etc. Dividends up to $0.10 per year, noncumulative, must be paid on Class A shares before any dividends are paid on Class B shares.

Note 11 - Stock Compensation	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	11. STOCK COMPENSATION  On November 20, 2023, the Board of Directors of the Company approved and adopted the Company’s 2023 Omnibus Equity Plan (the “2023 Equity Plan”). The 2023 Equity Plan replaces the Company’s 2013 Omnibus Equity Plan, which had expired. The 2023 Equity Plan became effective upon the Board’s approval, however the Company intends to submit the plan to the Company’s shareholders for ratification and approval at the Company’s 2024 annual meeting of shareholders.   The 2023 Equity Plan is administered by the Company’s Compensation Committee, in coordination with the Board. The 2023 Equity Plan permits awards to be made to officers, employees, consultants and directors of the Company, as selected by the Compensation Committee in coordination with the Board. The 2023 Equity Plan generally provides for the following types of awards: common shares, performance shares, restricted shares, restricted share units, stock appreciation rights and stock options. Stock options may be issued as either incentive stock options or nonqualified stock options, however incentive stock options may be issued only if the 2023 Equity Plan is ratified and approved by the Company’s shareholders.   The aggregate number of Class A common shares of the Company (“Class A Common Shares”) reserved for issuance pursuant to the 2023 Equity Plan is 350,000, and shares may again become available for awards under the 2023 Equity Plan in the event that any portion of an award is forfeited or terminated prior to its complete vesting or exercise.   Awards may be made under the 2023 Equity Plan for a period of ten years from the plan’s effective date, subject to the Board’s ability to amend, alter, suspend, discontinue, or terminate the 2023 Equity Plan or any portion thereof at any time.   No stock options are outstanding. Non-cash compensation expense, all related to restricted share awards, was $1,377,423 and $957,728 for the years ended December 31, 2023 and 2022, respectively. All but an immaterial number of shares issued had no vesting requirements.       December 31,       2023     2022                     Class A shares issued to Directors and employees related to stock compensation plans     34,700       32,200   Non-cash stock compensation expense   $ 1,377,423     $ 957,728     A summary of the Company’s Treasury stock acquired for the years ended December 31, 2022 and December 31, 2023 is as follows:       TREASURY SHARES       CLASS A     CLASS B                     Balance at December 31, 2021     41,844       182,435   Share repurchase     5,568       -   Balance at December 31, 2022     47,412       182,435   Share repurchase     6,662       -   Balance at December 31, 2023     54,074       182,435

Note 12 - Income Taxes	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	12. INCOME TAXES    Income tax expense for 2023 was $3,869,355 which was comprised of $4,817,023 of current income tax expense and $947,668 of deferred income tax benefit, resulting in an effective tax rate of 22.5%. Income tax expense for 2022 was $1,170,791 which was comprised of $2,629,560 of current income tax expense and $1,458,769 of deferred income tax benefit, resulting in an effective tax rate of 15.1%.   A reconciliation of the provision of income taxes to the statutory federal income tax rate is as follows:       Year     Year       December 31,     December 31,       2023     2022                     Income Before Provision for Income Taxes   $ 17,164,148     $ 7,732,194   Statutory rate     21 %     21 % Tax at statutory rate     3,604,471       1,623,761   State taxes, net of federal benefit     302,484       20,438   Release of FIN 48 reserve     (121,000 )     (414,000 ) Deferred Adjustments     125,935       -   Permanent differences     (299,103 )     (17,334 ) Return to provision adjustments     262,552       (22,681 ) Other     (5,984 )     (19,393 ) Provision for income taxes   $ 3,869,355     $ 1,170,791     Deferred tax assets (liabilities) consist of the following:        December 31,     December 31,       2023     2022                     Inventories   $ 176,022     $ 221,441   Bad debts     23,197       5,757   Accrued liabilities     527,320       677,728   Prepaid expense     (103,037 )     (136,419 ) Depreciation and amortization     (2,464,503 )     (3,111,224 ) Capitalized Costs     496,897       629,085   Research and development and other credit carryforwards     1,067,816       443,689   Right of use lease accounting     (149,876 )     (80,376 ) Directors stock option plan     203,914       180,761   Total deferred tax liability     (222,250 )     (1,169,558 ) Valuation allowance     (33,000 )     (39,000 ) Reserve for uncertain tax positions     (55,000 )     (176,000 ) Total reserves & allowances     (88,000 )     (215,000 ) Net deferred tax liability, net of reserves   $ (310,250 )   $ (1,384,558 )   Valuation Allowance The Company has a valuation allowance for deferred tax assets based upon certain credits that may not be fully utilized in the future. The Company believes the valuation allowance of $33,000 at December 31, 2023 and $39,000 at December 31, 2022, is adequate.   Reserve for Uncertain Tax Positions The Company has a reserve of unrecognized tax benefits related to exposures in accordance with ASC 740. The Company believes the reserve of $55,000 at December 31, 2023 and $176,000 at December 31, 2022, is adequate. Due to the uncertainties involved with this significant estimate, it is reasonably possible that the Company’s estimate may change in the near term.    Tax Credits and Net Operating losses: At December 31, 2023, the Company has state net operating losses (NOLs) and research and development (R&D) and other credit carryforwards for tax purposes which expire as follows:    Tax Year           R& D & Other   Expires   State NOLs     Credits   2024   $ -     $ 3,000   2025     -       3,000   2026     -       3,000   2027     -       3,000   2028     -       3,000   2029     -       3,000   2030     -       3,000   2031     -       3,000   2032     -       3,000   2033     -       3,000   2034     -       3,000   2035     -       -   2036     -       -   2037     -       -   2038 and beyond     -       -       $ -     $ 33,000

Note 13 - Earnings Per Common Share	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Earnings Per Share [Text Block]	13.     EARNINGS PER COMMON SHARE    The following table sets forth the computation of basic and diluted earnings per share and is inclusive of A and B Common Shares.        Years Ended       2023     2022                     Net Income Per Common Share - Basic                 Income available to common stockholders   $ 13,294,793     $ 6,561,403   Weighted Average Shares of Common Stock Outstanding     3,507,883       3,462,868                     Net Income Per Common Share - Basic   $ 3.79     $ 1.89                     Effect of Dilutive Securities                 Weighted Average Shares of Common Stock Outstanding - Basic     3,507,883       3,462,868   Unvested Restricted Stock Awards     18,953       -   Weighted Average Shares of Common Stock Outstanding - Diluted     3,526,836       3,462,868                     Net Income Per Common Share – Diluted                 Income available to common stockholders   $ 13,294,793     $ 6,561,403   Weighted Average Shares of Common Stock Outstanding - Diluted     3,526,836       3,462,868                     Net Income Per Common Share - Diluted   $ 3.77     $ 1.89     There were no options included in the computation of diluted earnings for the year ended December 31, 2023 or for the year ended December 31, 2022.

Note 14 - Employee Benefit Plans	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Retirement Benefits [Text Block]	14.     EMPLOYEE BENEFIT PLANS    The Company has a 401(k) Savings and Retirement Plans covering all full-time employees. Company contributions for each of these plans, including matching of employee contributions, are at the Company's discretion.   For the years ended December 31, 2023 and 2022, the Company made matching contributions to the plans in the amount of $389,179 and $359,965 respectively. Komtek Forge makes pension contributions to the United Steelworkers pension fund on behalf of its employees. For the years ended December 31, 2023 and December 31, 2022, these contributions amounted to $66,362 and $55,914 respectively. The Company does not provide any other postretirement benefits to its employees.

Note 15 - Acquisitions	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	15.  ACQUISITIONS   Effective January 10, 2022, Crawford REV Acquisition Company LLC (name later changed to Reverso Pumps LLC or “Reverso Pumps”), a Delaware limited liability company and indirect wholly-owned subsidiary of Crawford United Corporation (the “Company”), completed the acquisition (the “Reverso Transaction”) of substantially all the assets of Reverso Pumps, Inc., a Florida corporation and developer, designer, manufacturer, seller and distributor of oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems (“Reverso”), pursuant to an Asset Purchase Agreement (the “Reverso Asset Purchase Agreement”) entered into and effective January 10, 2022 by and among Reverso Pumps, the Seller, the seller parties named therein and the Seller Parties’ representatives named therein. Upon the closing of the Transaction, the assets were transferred and assigned to Reverso Pumps in exchange for approximately $2.6 million in cash after post-closing adjustments.   Additionally, effective on January 10, 2022, Crawford SEP Acquisition Company LLC (name later changed to Separ America LLC or “Separ America”), a Delaware limited liability company and indirect wholly-owned subsidiary of the Company, completed the acquisition (the “Separ Transaction,” and with the Reverso Transaction, the “Transactions”) of substantially all the assets of Separ of the Americas, LLC, a Florida limited liability company and developer, designer, manufacturer, seller and distributor of oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems (“Separ”) pursuant to an Asset Purchase Agreement (the “Separ Asset Purchase Agreement,” and together with the Reverso Asset Purchase Agreement, the “Purchase Agreements”) by and among Separ America, the Seller, the seller parties named therein and the Seller Parties’ representative named therein. Upon the closing of the Transaction, the assets were transferred and assigned to Separ America in exchange for approximately $1.6 million in cash after post-closing adjustments.   Cash Consideration Transferred   $ 3,951,392   Seller Transaction Costs     230,359   Total Consideration   $ 4,181,751             Accounts Receivable     466,887   Inventory     1,308,822   Fixed Assets     64,710   Prepaid and Other Assets     64,080   Intangible Assets: Customer List & Trademarks     1,300,000   Goodwill     1,572,913   Total Assets Acquired   $ 4,777,412             Accounts Payable   $ 542,359   Accrued Expense     53,302   Total Liabilities Assumed   $ 595,661   Total Fair Value   $ 4,181,751             Acquisition transaction costs incurred were:   $ 124,825     Goodwill Goodwill has an assigned value of $1.6 million and represents the expected synergies generated by combining the operations of Reverso, Separ, and the Company. The Company sells marine hoses and related products and the acquisition of Reverso Pumps and Separ America will allow the Company to expand its offerings to customers in the strategically important marine and defense markets. Intangible assets, customer list has an assigned value of $0.5 million which represents the expected value of the list of the customers of Reverso Pumps and Separ America. Intangible assets, trademarks has an assigned value of $0.8 million which represents the expected value of the trademarks of Reverso Pumps and Separ America.   Effective May 1, 2022, Knitting Machinery Company of America, LLC, a Delaware limited liability company (“Knitting Machinery”) and indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of all of the operating assets of KMC Corp. dba Knitting Machinery Corp., a Delaware corporation and specialist in the manufacture of hose reinforcement machinery for the plastic, rubber and silicone industries pursuant to an Asset Purchase Agreement entered into as of May 1, 2022. The acquired business is strategically important to the Company’s growing industrial hose platform and will expand its offerings and diversify its customer base in this important market segment. The assets were transferred and assigned to Knitting Machinery in exchange for approximately $250,000 in cash and 38,462 Class A Common Shares valued at $1.0 million.   Cash Consideration Transferred   $ 250,000   Fair Value of Stock Consideration     1,000,012   Total Consideration   $ 1,250,012             Cash   $ 100,000   Accounts Receivable     155,932   Inventory     517,270   Fixed Assets     90,603   Intangible Assets     150,000   Goodwill     645,372   Total Assets Acquired   $ 1,659,177             Accounts Payable   $ 33,694   Deferred Revenue     375,471   Total Liabilities Assumed   $ 409,165   Total Fair Value     1,250,012             Acquisition transaction costs incurred were:   $ 30,479     Goodwill and Intangible Assets Goodwill has an assigned value of $0.6 million and represents the expected synergies generated by combining the operations of KMC and the Company. Goodwill increased by $0.2 million from $0.4 million at   December 31, 2022 to $0.6 million at December 31, 2023. The increase in Goodwill was driven by a purchase accounting adjustment to Goodwill in the second quarter of 2023 for a change in inventory and fixed assets. The Company utilizes industrial hoses for customers in the Industrial and Transportation Products segment and the acquisition of KMC has allowed the Company to strengthen its supply chain. Intangible asset, trademark has an assigned value of $0.075 million which represents the expected value of the KMC trade name in the market. Intangible asset, customer list has an assigned value of $0.075 million which represents the expected value of the list of the customers of KMC to the Company.   Sales and Net Income for the Acquired Companies Sales and net income information for the acquired companies, Reverso Pumps LLC (“Reverso Pumps”), Separ America LLC (“Separ America”) and Knitting Machinery Company of America LLC (“Knitting Machinery”) since the respective acquisition dates for years ended  December 31, 2023 and 2022 are provided below.       Year ended     Year ended       December 31, 2023     December 31, 2022       Sales     Net Income     Sales     Net Income   Acquired Companies:                                 Reverso Pumps (acquired January 10, 2022)   $ 6,527,485     $ 1,141,472     $ 5,467,426     $ 876,558   Separ America (acquired January 10, 2022)     2,339,485       744,663       1,746,551       353,239   Knitting Machinery (acquired May 1, 2022)     633,573       33,579       1,022,603       82,830   Subtotal Acquired Companies   $ 9,500,543     $ 1,919,714       8,236,580       1,312,627                                     All Other Companies     134,385,391       11,375,079       119,518,347       5,248,776   Total   $ 143,885,934     $ 13,294,793     $ 127,754,927     $ 6,561,403

Note 16 - Segment and Related Information	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	16. SEGMENT AND RELATED INFORMATION     The Company reports operations for two business segments: (1) Commercial Air Handling Equipment and (2) Industrial and Transportation Products. The identification of our operating segments is based on guidance in ASC 280-10-50-1. The Company's management evaluates segment performance based primarily on segment operating profit. Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses. The Company does not allocate corporate costs to the respective segments.   Both the Commercial Air Handling Equipment segment and the Industrial and Transportation Products segment engage in business activities from which they may recognize revenues and incur expenses, including revenue and expenses relating to transactions with other components of the Company. The operating results for both the Commercial Air Handling Equipment segment and the Industrial and Transportation Products segment are reviewed regularly by our chief operating decision maker, the chief executive officer, and is considered in making decisions about resources to be allocated to the segment in assessing its performance. Financial information for both segments is available in internal financial statements that are prepared on a monthly basis.   Commercial Air Handling Equipment: The Commercial Air Handling Equipment segment was added June 1, 2017, when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of 50 years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.   Industrial and Transportation Products:  The Industrial and Transportation Products segment was added July 1, 2016, when the Company purchased the assets of the Federal Hose Manufacturing, LLC of Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets. The Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc.(“CAD”) in Phoenix, Arizona on July 1, 2018. CAD provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions. Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels. CAD’s quality certifications include ISO 9001:2015/AS9100D, as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, and TIG/E-Beam welding. The Company added the distribution of marine hose to this segment through the acquisition of the assets of MPI Products, Inc. (“MPI”) on January 2, 2020. MPI specializes in rubber and plastic marine hose for the recreational boating industry. MPI offers certified products that meet marine industry standards and regulations. Effective April 19, 2019, the Company, completed the acquisition of substantially all of the assets of Data Genomix, Inc., an Ohio corporation (“DG”). DG is in the business of developing and commercializing marketing and data analytic technology applications. The Company purchased all of the issued and outstanding membership interests of KT Acquisition LLC (name later changed to Komtek Forge LLC), in Worcester, Massachusetts on January 15, 2021. Komtek Forge LLC is a supplier of highly engineered forgings for the aerospace, industrial gas turbine, medical prosthetics, alternative energy, petrochemical and defense industries. The Company purchased all of the membership interests of Global-Tek-Manufacturing LLC (“Global-Tek”), in Ceiba, Puerto Rico and substantially all of the assets of Machining Technology LLC (name later changed to Global-Tek Colorado LLC or “Global-Tek Colorado”) in Longmont, Colorado on March 2, 2021. Global-Tek and Global-Tek Colorado specialize in providing customers with highly engineered manufacturing solutions, including CNC machining, anodizing, electro polishing and laser marking for customers in the defense, aerospace and medical device markets. The Company purchased substantially all of the assets of Emergency Hydraulics LLC (“Emergency Hydraulics”), in Ocala, Florida on July 1, 2021. Emergency Hydraulics provides hydraulic hoses, air tank assemblies and related products to manufacturers of firefighting trucks and other emergency vehicles. The company purchased substantially all of the assets of Crawford REV Acquisition Company LLC (name later changed to Reverso Pumps LLC or “Reverso Pumps”), in Davie, Florida on January 10, 2022. Reverso Pumps develops, designs, manufactures, sells and distributes oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems.   The company purchased substantially all of the assets of Crawford SEP Acquisition Company LLC (name later changed to Separ America LLC or “Separ America”), in Davie, Florida on January 10, 2022. Separ America develops, designs, manufactures, sells and distributes oil change systems, fuel and oil transfer pumps, fuel primers, fuel polishing systems and engine flushing systems. The company purchased substantially all of the assets of KMC Corp. dba Knitting Machinery Corp. (“Knitting Machinery”), in Cleveland, Ohio and Greenville, Ohio on May 1, 2022. Knitting Machinery specializes in manufacturing hose reinforcement machinery for the plastic, rubber and silicone industries.   The factors used to determine the Company’s reportable segments follow the guidance of ASC 280-10-50-21 and 50-10-22 and include consideration of the type of products or services delivered, the customers and end markets served, the appliable revenue recognition methodology and the length of time it takes to deliver products or services to customers. The Commercial Air Handling Equipment segment was identified as a reportable segment consisting of Air Enterprises, because Air Enterprises is strategically and operationally different from our other companies in several ways. First, Air Enterprises sells equipment to end customers and our other businesses that fall into the Industrial and Transportation Products segment sell products and components to end customers, not equipment. Second, the Commercial Air Handling Equipment segment delivers custom air handling solutions to customers which is different than the Industrial and Transportation Products segment which delivers manufactured metal, silicone, hydraulic and marine hoses, complex engineered components, highly engineered forgings, highly engineered and machined parts and data analytic technology applications. Third, the Commercial Air Handling Equipment segment serves customers primarily in the health care and education end markets while the Industrial and Transportation Products segment delivers products to customers in the heavy-duty truck manufacturing, agricultural, industrial, petrochemical, aerospace, defense, industrial gas turbine, medical prosthetics, alternative energy and emergency vehicle end markets. Fourth, the Commercial Air Handling Equipment segment recognizes revenue primarily over time while the Industrial and Transportation Products segment recognizes revenue primarily at a point in time. Fifth, the Commercial Air Handling Equipment segment manufactures custom air handling solutions for customers over a period of three to eighteen months from the time the order is received to the time the air handling solution is delivered to the end customer as compared to the Industrial and Transportation Products segment which sells and delivers products to customers much more quickly, often within 30 days or less. For the reasons previously mentioned, Air Enterprises is strategically and operationally different than the other businesses owned by the Company and management finds it useful to include this business in the Commercial Air Handling Segment which is separate and distinct from all of our other businesses that reside in the Industrial and Transportation Products segment.   Corporate:  Corporate costs not directly attributable to a segment are aggregated here.   Information by industry segment is set forth below:        Twelve Months ended 2023               Industrial                       Commercial     And                       Air     Transportation                       Handling     Products     Corporate     Consolidated   Sales   $ 58,378,593     $ 85,507,341     $ -     $ 143,885,934   Gross Profit     19,123,207       18,522,875       -       37,646,082   Operating Income     15,367,247       7,594,668       (5,029,444 )     17,932,471   Pretax Income     15,367,247       8,173,742       (6,376,841 )     17,164,148   Net Income     10,987,581       6,090,530       (3,783,318 )     13,294,793           Twelve Months ended 2022               Industrial                       Commercial     And                       Air     Transportation                       Handling     Products     Corporate     Consolidated   Sales   $ 47,649,695     $ 80,105,232     $ -     $ 127,754,927   Gross Profit     10,751,822       16,280,959       -       27,032,781   Operating Income     6,670,069       5,955,820       (4,092,417 )     8,533,472   Pretax Income     6,670,069       5,951,335       (4,889,210 )     7,732,194   Net Income     4,769,099       4,253,978       (2,461,674 )     6,561,403         Year Ended     Year Ended       December 31,     December 31,       2023     2022   Capital Expenditures:                 Commercial Air Handling Equipment Segment   $ 250,685     $ 53,591   Industrial and Transportation Products Segment     1,290,742       534,563   Corporate     491,346       154,674   Total Capital Expenditures   $ 2,032,773     $ 742,828                     Depreciation and Amortization:                 Commercial Air Handling Equipment Segment   $ 432,038     $ 431,752   Industrial and Transportation Products Segment     3,344,898       3,151,898   Corporate     144,804       167,155   Total Depreciation and Amortization   $ 3,921,740     $ 3,750,805                     Identifiable Assets:                 Commercial Air Handling Equipment Segment   $ 20,252,946     $ 20,681,082   Industrial and Transportation Products Segment     70,808,054       76,701,530   Corporate     2,578,598       2,215,461   Total Identifiable Assets   $ 93,639,598     $ 99,598,074     Geographical Information Included in the consolidated financial statements are the following amounts related to geographic locations:       Year Ended     Year Ended       December 31,     December 31,       2023     2022                     United States of America   $ 140,583,071     $ 125,097,522   Puerto Rico     1,665,770       413,684   Canada     975,866       1,175,246   Other     661,227       1,068,475       $ 143,885,934     $ 127,754,927     All export sales to foreign countries are made in US Dollars.

Note 17 - Quarterly Data (Unaudited)	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Quarterly Financial Information [Text Block]	17. QUARTERLY DATA (UNAUDITED)   The following table presents the Company’s unaudited quarterly consolidated income statement data for the years ended December 31, 2023 and 2022. These quarterly results include all adjustments consisting of normal recurring adjustments that the Company considers necessary for the fair presentation for the quarters presented and are not necessarily indicative of the operating results for any future period.       Year Ended December 31, 2023       March 31,     June 30,     September 30,     December 31,       2023     2023     2023     2023                                     Sales   $ 39,484,356     $ 36,933,015     $ 33,641,513     $ 33,827,050   Gross Profit     10,516,552       10,474,878       8,909,332       7,745,321   Operating Income     5,119,267       5,152,364       4,296,968       3,363,871   Net Income     3,391,473       3,851,342       2,814,736       3,237,242   Net Income per Common Share:                                 Basic   $ 0.97     $ 1.10     $ 0.80     $ 0.92   Diluted   $ 0.97     $ 1.09     $ 0.80     $ 0.91         Year Ended December 31, 2022       March 31,     June 30,     September 30,     December 31,       2022     2022     2022     2022                                     Sales   $ 31,002,746     $ 31,902,027     $ 32,189,623     $ 32,660,531   Gross Profit     6,366,405       6,768,491       6,309,803       7,588,082   Operating Income     1,397,321       2,375,527       1,999,678       2,760,946   Net Income     1,065,875       1,171,264       1,254,545       3,069,719   Net Income per Common Share:                                 Basic   $ 0.31     $ 0.34     $ 0.36     $ 0.88   Diluted   $ 0.31     $ 0.34     $ 0.36     $ 0.88

Note 18 - Subsequent Events	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
Subsequent Events [Text Block]	18. SUBSEQUENT EVENTS   Effective January 2, 2024, the Company acquired substantially all of the assets of Heany Industries Inc. (“Heany”) under an asset purchase agreement in exchange for $7 million in cash, subject to customary post-closing adjustments. Heany offers materials engineering solutions for a variety of aerospace, industrial and bio-medical applications. Heany’s engineered coatings provide a protective shield for aircraft engine components, locomotive parts, dental implants, and other applications where increasing longevity and reducing downtime is critical. The asset purchase agreement contains customary indemnification obligations of each party with respect to breaches of their respective representations, warranties and covenants, and certain other specified matters, which are subject to certain exceptions, terms and limitations. The asset purchase agreement contains certain customary post-closing covenants of the parties.

Insider Trading Arrangements	3 Months Ended	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2023
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]		ITEM 9B. OTHER INFORMATION.   During the quarter ended December 31, 2023, no director or officer of the Company adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, each as defined in Item 408 of Regulation S-K.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Schedule II - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2023
Notes to Financial Statements
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	CRAWFORD UNITED CORPORATION SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS               Additions                       Balance at     Charged to                       Beginning     Costs and             Balance at   Description   of Period     Expenses     Deductions     End of Period   Year Ended December 31, 2022   Reserve for doubtful accounts   $ 75,390     $ 68,241     $ -     $ 143,631   Reserve for inventory obsolescence     452,607       905,340       -       1,357,947   Reserve for product warranty     30,383       432,906       (398,289 )     65,000   Valuation allowance for deferred taxes     47,319       -       (8,319 )     39,000   Reserve for uncertain tax positions   $ 590,000     $ -     $ (414,000 )   $ 176,000                                     Year Ended December 31, 2023   Reserve for doubtful accounts   $ 143,631     $ -     $ (38,408 )   $ 105,223   Reserve for inventory obsolescence     1,357,947       58,000       (738,167 )     677,780   Reserve for product warranty     65,000       709,409       (571,796 )     202,613   Valuation allowance for deferred taxes     39,000       -       (6,000 )     33,000   Reserve for uncertain tax positions   $ 176,000     $ -     $ (121,000 )   $ 55,000

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard was effective for smaller reporting companies for fiscal years beginning after December 15, 2022. The Company has fully adopted the standard with no material impact to the financial statements.    In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU enhances reportable segment disclosures on both an annual and interim basis primarily in regards to the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure(s) of segment profit or loss. In addition, the ASU requires disclosure, by segment, of other items included in the reported measure(s) of segment profit or loss, including qualitative information describing the composition, nature and type of each item. The ASU also expands disclosure requirements related to the CODM, including how the reported measure(s) of segment profit or loss are used to assess segment performance and allocate resources, the method used to allocate overhead for significant segment expenses and others. Lastly, all current required annual segment reporting disclosures under Topic 280 are now effective for interim periods. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this ASU.   In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU enhances income tax disclosures by providing information to better assess how an entity’s operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, local and foreign jurisdictions. This ASU is effective for fiscal years and interim periods beginning after December 15, 2024. The Company is evaluating the impact of adopting this ASU.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts of certain assets and liabilities and disclosure of contingencies at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments Accounting for "Financial Instruments" requires the Company to disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable, and notes payable. The carrying amounts reported in the consolidated balance sheet for assets and liabilities qualifying as financial instruments is a reasonable estimate of fair value.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value Measurements As defined in FASB ASC 820, "Fair Value Measurements", fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:   * Level 1: Quoted market prices in active markets for identical assets or liabilities.   * Level 2: Inputs to the valuation methodology include:   - Quoted prices for similar assets or liabilities in active markets;   - Quoted prices for identical assets or similar assets or liabilities in inactive markets;   - Inputs other than quoted prices that are observable for the asset or liability;   - Inputs that are derived principally from or corroborated by observable market data by correlation or other means.   * Level 3: Unobservable inputs that are not corroborated by market data.   A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.   The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.   Investments in stock: The stock market value is based on valuation of market quotes from independent active market sources, and is considered a level 1 investment.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk The Company sells its products and services primarily to customers in the United States of America and to a lesser extent overseas. All sales are made in U.S. dollars. The Company extends normal credit terms to its customers. For the year ended December 31, 2023, sales to nine customers in the Commercial Air Handling Equipment segment were 18.9% of consolidated sales of the Company, while sales to nine customers in the Industrial and Transportation Products segment accounted for 23.2% of consolidated sales. For the year ended December 31, 2022, sales to nine customers in the Commercial Air Handling Equipment segment were 17.0% of consolidated sales of the Company, while nine customers in the Industrial and Transportation Products segment accounted for 22.5% of consolidated sales.
Revenue [Policy Text Block]	Revenue Recognition The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of the revenue standard is that a company should recognize revenue by analyzing the following five steps: (1) Identify the contract with the customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations; and 5) Recognize revenue when (or as) each performance obligation is satisfied. The Company primarily receives fixed consideration for sales of product. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. Costs incurred to obtain a contract will be expensed as incurred when the amortization period is less than a year. Shipping and handling amounts paid by customers are included in revenue. Sales tax and other similar taxes are excluded from revenue.
Contract Performance Obligation [Policy Text Block]	Contract Performance Obligations: To determine proper revenue recognition, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether a combined or single contract should be accounted for as more than one performance obligation. This evaluation sometimes requires judgment, and the decision to combine contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to contain a single performance obligation if the promise to transfer individual goods or services is not separately identifiable from other promises in the contracts primarily because the Company provides a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple performance phases of the product lifecycle (development, construction, maintenance and support) are typically considered to have multiple performance obligations even when they are part of a single contract. The Company provides warranties, as well as limited workmanship warranties, to customers. These warranties are included in the sale, and do not provide customers with a service in addition to assurance of compliance with agreed upon specifications. The Company does not consider these assurance-type warranties to be separate performance obligations.
Construction Contractor [Policy Text Block]	Construction Contracts The Company recognizes revenue on construction contracts over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. The customer typically controls the work in process, as evidenced by the contract.   The Company’s construction contracts are generally accounted for as a single performance obligation, since the Company is providing a significant service of integrating components into a single project. The Company recognizes revenue using a cost-based input method, by which actual costs incurred relative to total estimated contract costs determine, as a percentage, progress toward contract completion. This percentage is applied to the transaction price to determine the amount of revenue to recognize. The Company believes the cost-based input method is the best depiction of performance, because it directly measures the value of the services transferred to the customer. Revenues on uninstalled materials are recognized when control is transferred to the customer, which does not necessarily equate to when the cost is incurred.   If based on a lack of reliable information, progress cannot be reasonably measured, recognition of revenues (but not costs) is deferred until progress can be reliably measured. If, however, the Company expects that total costs will be recovered, revenues are recognized equal to costs incurred until the Company can reliably measure progress. There were no contracts that were unable to be reasonably measured at December 31, 2023 and 2022.   Revenues on uninstalled materials are recognized when control is transferred to the customer, which does not necessarily equate to when the cost is incurred. Under limited circumstances (e.g., transfer of control occurs significantly after services are provided, the cost of the materials is significant), revenue is recognized, but no profit is recognized, on certain uninstalled third-party materials when the cost is incurred.   Because the Company almost always acts as a principal in contracts, revenues are recognized gross. The Company is considered the principal because the Company controls the contractually specified goods and services before they are transferred to the customer. The payment terms of the Company’s construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as the Company expects to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.   The payment terms of the Company’s construction contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. The advance payment generally is not considered a significant financing component as the Company expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.
Contract Assets [Policy Text Block[	Contract Assets Contract assets are related to the Commercial Air Handling segment. A contract asset is recorded when revenue is recognized in advance of the right to receive consideration (i.e., the Company must perform additional services in order to receive consideration). Amounts are recorded as receivables when the right to consideration is unconditional. When consideration is received, or the Company has an unconditional right to consideration in advance of delivery of goods or services, a contract liability would be recorded.
Contract Estimates [Policy Text Block]	Contract Estimates Due to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is subject to many variables and requires significant judgment. Since a significant change in one or more of these variables could affect the profitability of contracts, the Company reviews and updates contract-related estimates regularly through a review process in which the Company reviews the progress and execution of performance obligations and the estimated cost at completion.   The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, a provision for the entire loss is recognized in the period it is identified.
Contract Modifications, Policy [Policy Text Block]	Contract Modifications Contract modifications are routine in the performance of the Company’s contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract.
Variable Consideration, Policy [Policy Text Blcok]	Variable Consideration The nature of the Company’s contracts can, but typically do not, give rise to several types of variable consideration, including claims, unpriced change orders, and liquidated damages and penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount.   Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on assessment of legal enforceability, past performance, and all information (historical, current, and forecasted) that is reasonably available to the Company.
Cost of Goods and Service [Policy Text Block]	Cost and Expense Recognition Contract costs include all direct labor, materials, subcontractor, and equipment costs, and those indirect costs related to contract performance, such as indirect labor, tools and supplies. For construction contracts, costs are generally recognized as incurred. Under certain circumstances, costs incurred in the period related to future activity on contracts may be capitalized.   Costs incurred that do not contribute to satisfying performance obligations are excluded from the cost input calculation for revenue recognition. Excluded costs include both uninstalled materials and abnormal costs. Abnormal costs comprise wasted materials, wasted or rework labor and other resources to fulfill a contract that were not reflected in the price of the contract. A limited allowance for material overages and labor inefficiencies is typically included in our contract costs estimates (and by extension in the contract price).   For construction contracts, when it is probable that the total contract costs will exceed total contract revenues, a provision for the estimated expected loss is recorded. As long-term contracts extend over one or more years, revisions in costs and profits estimated during the course of the work are reflected in the accounting period in which the facts requiring the changes become known. Contracts which are substantially complete are considered closed for financial statement purposes.
Revenue from Contract with Customer [Policy Text Block]	Unearned Revenue Unearned revenue consists of customer deposits and contract liabilities related to the Commercial Air Handling Equipment segment.  Unearned revenue for the year ended  December 31, 2022 was $4,354,868, substantially all of this unearned revenue was recognized in 2023
Disaggregation of Revenue [Policy Text Block]	Disaggregation of Revenue Revenue earned over time compared to at a point in time is as follows for the years ended December 31, 2023 and 2022.       December 31,       2023     2022                     Earned over time   $ 59,572,611     $ 50,236,873   Point in time     84,313,323       77,518,054   Total revenue   $ 143,885,934     $ 127,754,927
Revenue Recogniztion, Deferred Commissions, Policy [Policy Text Block]	Deferred Commissions Commissions are earned based on the status of the contract. Commissions are paid upon receipt of payment for units shipped.
Standard Product Warranty, Policy [Policy Text Block]	Product Warranties The Company provides a warranty for its custom air handling business covering parts for 12 months from startup or 18 months from shipment, whichever comes first. The warranty reserve is maintained at a level which, in management’s judgment, is adequate to absorb potential warranties incurred. The amount of the reserve is based on management’s knowledge of the contracts and historical trends. Because of the uncertainties involved in the contracts, it is reasonably possible that management’s estimates may change in the near term. However, the amount of change that is reasonably possible cannot be precisely estimated at this time. There are no material warranty obligations outside of the air handling business.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. From time to time the Company maintains cash balances in excess of the FDIC limits.
Receivable [Policy Text Block]	Accounts Receivable The Company recognizes an allowance for losses on accounts receivable in an amount equal to the current expected credit losses. The estimation of the allowance is based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and reasonable and supportable expectation of future conditions, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for expected credit losses is recognized in selling, general and administrative expenses
Inventory, Policy [Policy Text Block]	Inventory Inventories are valued using the first-in, first-out (“FIFO”) method; stated at the lower of cost or net realizable value; and are reduced by an allowance for obsolete and slow-moving inventories. The allowance is estimated based on management’s review of inventories on hand with minimal sales activity, which is compared to estimated future usage and sales. Inventories identified by management as slow-moving or obsolete are reserved for based on estimated selling prices less disposal costs.
Property, Plant and Equipment, Policy [Policy Text Block]	Property, Plant and Equipment Property, plant and equipment are carried at cost. Maintenance and repair costs are expensed as incurred. Additions and betterments are capitalized. The depreciation policy of the Company is generally as follows:           Estimated Useful   Class   Method   Lives (years)               Buildings and Improvements   Straight-line   10 to 40   Machinery and Equipment   Straight-line   3 to 20
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	Valuation of Long-Lived Assets Long-lived assets such as property, plant and equipment, as well as intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected future undiscounted cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying value of the asset.
Cost of Goods and Service Sold, Shipping and Handling Cost, Policy [Policy Text Block]	Shipping and Handling Costs Shipping and handling costs are classified as cost of product sold.
Income Tax, Policy [Policy Text Block]	Income Taxes The provision for income taxes is computed on domestic financial statement income. Where transactions are included in the determination of taxable income in a different year, deferred income tax accounting is used.   The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus any change in deferred taxes during the year. Deferred taxes result from differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The IRS concluded the audit of the 2018 Tax Return on February 3, 2023 and there were no material findings and this matter is considered closed.
Earnings Per Share, Policy [Policy Text Block]	Income per Common Share Income per common share information is computed on the weighted average number of shares outstanding during each period.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	Goodwill Indefinite-lived intangible assets and Goodwill are tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not (i.e., a likelihood greater than 50%) that the intangible asset or the reporting unit is impaired.
Reclassification, Comparability Adjustment [Policy Text Block]	Reclassifications: Certain 2022 financial information has been reclassified to conform to the 2023 presentation.

Note 2 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Disaggregation of Revenue [Table Text Block]	December 31,       2023     2022                     Earned over time   $ 59,572,611     $ 50,236,873   Point in time     84,313,323       77,518,054   Total revenue   $ 143,885,934     $ 127,754,927
Property, Plant and Equipment Estimated Useful Lives [Table Text Block]	Estimated Useful   Class   Method   Lives (years)               Buildings and Improvements   Straight-line   10 to 40   Machinery and Equipment   Straight-line   3 to 20

Note 4 - Inventory (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31,     December 31,       2023     2022   Raw materials and component parts   $ 3,989,444     $ 2,892,820   Work-in-process     4,514,263       5,158,252   Finished products     9,846,694       13,483,017   Total inventory   $ 18,350,401     $ 21,534,089   Less: inventory reserves     677,779       1,357,947   Net inventory   $ 17,672,622     $ 20,176,142

Note 5 - Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Schedule of Goodwill [Table Text Block]	December 31,     December 31,       2023     2022   Commercial Air Handling Equipment Segment:                 Beginning Balance   $ 478,256     $ 478,256   Acquisitions     -       -   Adjustments     -       -   Ending Balance   $ 478,256     $ 478,256                     Industrial and Transportation Products Segment:                 Beginning Balance   $ 15,753,682     $ 13,926,362   Acquisitions     -       1,997,174   Adjustments     221,111       (169,854 ) Ending Balance   $ 15,974,793     $ 15,753,682                     Total Company:                 Beginning Balance   $ 16,231,938     $ 14,404,618   Acquisitions     -       1,997,174   Adjustments     221,111       (169,854 ) Ending Balance   $ 16,453,049     $ 16,231,938
Schedule of Finite-Lived Intangible Assets [Table Text Block]	December 31, 2023     December 31, 2022   Customer list intangibles   $ 9,316,000     $ 9,316,000   Non-compete agreements     200,000       200,000   Trademarks     4,466,899       4,445,649   Total intangible assets     13,982,899       13,961,649   Less: accumulated amortization     5,730,299       4,469,089   Intangible assets, net   $ 8,252,600     $ 9,492,560
Finite-Lived Intangible Assets Amortization Expense [Table Text Block]	December 31, 2023     December 31, 2022                     Accumulated amortization at the beginning of the period   $ 4,469,089     $ 3,203,585   Amortization expense     1,261,210       1,265,504   Accumulated amortization at end of period   $ 5,730,299     $ 4,469,089
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Amortization in future periods   2024     1,261,210   2025     1,261,210   2026     933,345   2027     817,298   2028     759,117

Note 6 - Property, Plant and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Property, Plant and Equipment [Table Text Block]	December 31,     December 31,       2023     2022   Land   $ 231,034     $ 231,034   Buildings and improvements     3,760,203       3,222,243   Machinery & equipment     24,851,703       23,301,660   Total property, plant & equipment     28,842,940       26,754,937   Less: accumulated depreciation     14,156,750       11,541,494   Property plant & equipment, net   $ 14,686,190     $ 15,213,443

Note 7 - Investments in Equity Securities (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Gain (Loss) on Securities [Table Text Block]	UNREALIZED     REALIZED               BALANCE     ACQUISITIONS,     GAINS     GAINS     BALANCE       AT     DISPOSITIONS     (LOSSES)     (LOSSES)     AT END       BEGINNING     AND     INCLUDED     INCLUDED     OF       OF YEAR     SETTLEMENTS     IN EARNINGS     IN EARNINGS     PERIOD   December 31, 2022   $ 1,518,244     $ -     $ (860,273 )   $ -     $ 657,971                                             Year-to-date December 31, 2023     657,971       -       53,614       (46,284 )     665,301
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	Unobservable               Quoted     Models with     Inputs that               Market     Significant     are not     Total       Prices in     Observable     Corroborated     Carrying       Attractive     Market     by Market     Value in the       Markets     Parameters     Data     Balance       (Level 1)     (Level 2)     (Level 3)     Sheet   Common stock as of December 31, 2023   $ 665,301     $ -     $ -     $ 665,301   Common stock as of December 31, 2022   $ 657,971     $ -     $ -     $ 657,971

Note 8 - Bank Debt and Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Schedule of Debt [Table Text Block]	December 31,     December 31,       2023     2022   Term debt   $ -     $ 222,222   Revolving debt     5,112,187       19,281,119   Total Bank debt     5,112,187       19,503,341   Less: current portion     -       222,222   Non-current bank debt     5,112,187       19,281,119   Less: unamortized debt costs     15,515       56,801   Net non-current bank debt   $ 5,096,672     $ 19,224,318
Schedule of Long-Term Debt Instruments [Table Text Block]	December 31,     December 31,       2023     2022   In connection with the Komtek Forge acquisition, the Company refinanced its previously outstanding First Francis promissory notes, accrued interest payable through the refinance date and the assumed First Francis promissory note into one note on January 15, 2021 for a $3,779,784 loan due to First Francis Company, payable in quarterly installments beginning April 15, 2021 and maturing on October 15, 2025   $ 1,294,435     $ 2,587,877   In connection with the CAD acquisition, the Company entered into a promissory note on July 1, 2018 for a $9,000,000 loan due to the seller, payable in quarterly installments beginning September 30, 2018. The note was paid in full on March 31, 2023     -       562,500   Total notes payable     1,294,435       3,150,377   Less current portion     824,226       1,303,972   Notes payable – non-current portion   $ 470,209     $ 1,846,405
Notes Payable [Member]
Notes Tables
Schedule of Maturities of Long-Term Debt [Table Text Block]	Related Party     Total Principal       Notes     Payments                     2024     824,226       824,226   2025     470,209       470,209   2026     -       -   2027     -       -   Total principal payments   $ 1,294,435     $ 1,294,435

Note 9 - Leases (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block]	December 31,     December 31,       2023     2022   Operating leases:                 Operating lease right-of-use assets, net   $ 8,356,903     $ 9,524,280                     Other current liabilities     1,714,174       1,705,224   Operating lease liabilities     6,901,043       8,060,152   Total operating lease liabilities   $ 8,615,217     $ 9,765,376   Weighted Average Remaining Lease Term                 Operating Leases (in years)     7.1       7.7   Weighted Average Discount Rate                 Operating Leases     5.0 %     5.0 %
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	Operating       Leases   Year Ending December 31,         2024   $ 2,105,239   2025     2,061,125   2026     1,521,090   2027     845,957   2028     636,577   Thereafter     3,059,965   Total future minimum lease payments   $ 10,229,953   Less: imputed interest     (1,614,736 ) Total   $ 8,615,217

Note 11 - Stock Compensation (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]	December 31,       2023     2022                     Class A shares issued to Directors and employees related to stock compensation plans     34,700       32,200   Non-cash stock compensation expense   $ 1,377,423     $ 957,728
Class of Treasury Stock [Table Text Block]	TREASURY SHARES       CLASS A     CLASS B                     Balance at December 31, 2021     41,844       182,435   Share repurchase     5,568       -   Balance at December 31, 2022     47,412       182,435   Share repurchase     6,662       -   Balance at December 31, 2023     54,074       182,435

Note 12 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Year     Year       December 31,     December 31,       2023     2022                     Income Before Provision for Income Taxes   $ 17,164,148     $ 7,732,194   Statutory rate     21 %     21 % Tax at statutory rate     3,604,471       1,623,761   State taxes, net of federal benefit     302,484       20,438   Release of FIN 48 reserve     (121,000 )     (414,000 ) Deferred Adjustments     125,935       -   Permanent differences     (299,103 )     (17,334 ) Return to provision adjustments     262,552       (22,681 ) Other     (5,984 )     (19,393 ) Provision for income taxes   $ 3,869,355     $ 1,170,791
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	December 31,     December 31,       2023     2022                     Inventories   $ 176,022     $ 221,441   Bad debts     23,197       5,757   Accrued liabilities     527,320       677,728   Prepaid expense     (103,037 )     (136,419 ) Depreciation and amortization     (2,464,503 )     (3,111,224 ) Capitalized Costs     496,897       629,085   Research and development and other credit carryforwards     1,067,816       443,689   Right of use lease accounting     (149,876 )     (80,376 ) Directors stock option plan     203,914       180,761   Total deferred tax liability     (222,250 )     (1,169,558 ) Valuation allowance     (33,000 )     (39,000 ) Reserve for uncertain tax positions     (55,000 )     (176,000 ) Total reserves & allowances     (88,000 )     (215,000 ) Net deferred tax liability, net of reserves   $ (310,250 )   $ (1,384,558 )
Summary of Operating Loss Carryforwards [Table Text Block]	Tax Year           R& D & Other   Expires   State NOLs     Credits   2024   $ -     $ 3,000   2025     -       3,000   2026     -       3,000   2027     -       3,000   2028     -       3,000   2029     -       3,000   2030     -       3,000   2031     -       3,000   2032     -       3,000   2033     -       3,000   2034     -       3,000   2035     -       -   2036     -       -   2037     -       -   2038 and beyond     -       -       $ -     $ 33,000

Note 13 - Earnings Per Common Share (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Years Ended       2023     2022                     Net Income Per Common Share - Basic                 Income available to common stockholders   $ 13,294,793     $ 6,561,403   Weighted Average Shares of Common Stock Outstanding     3,507,883       3,462,868                     Net Income Per Common Share - Basic   $ 3.79     $ 1.89                     Effect of Dilutive Securities                 Weighted Average Shares of Common Stock Outstanding - Basic     3,507,883       3,462,868   Unvested Restricted Stock Awards     18,953       -   Weighted Average Shares of Common Stock Outstanding - Diluted     3,526,836       3,462,868                     Net Income Per Common Share – Diluted                 Income available to common stockholders   $ 13,294,793     $ 6,561,403   Weighted Average Shares of Common Stock Outstanding - Diluted     3,526,836       3,462,868                     Net Income Per Common Share - Diluted   $ 3.77     $ 1.89

Note 15 - Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Business Acquisition, Pro Forma Information [Table Text Block]	Year ended     Year ended       December 31, 2023     December 31, 2022       Sales     Net Income     Sales     Net Income   Acquired Companies:                                 Reverso Pumps (acquired January 10, 2022)   $ 6,527,485     $ 1,141,472     $ 5,467,426     $ 876,558   Separ America (acquired January 10, 2022)     2,339,485       744,663       1,746,551       353,239   Knitting Machinery (acquired May 1, 2022)     633,573       33,579       1,022,603       82,830   Subtotal Acquired Companies   $ 9,500,543     $ 1,919,714       8,236,580       1,312,627                                     All Other Companies     134,385,391       11,375,079       119,518,347       5,248,776   Total   $ 143,885,934     $ 13,294,793     $ 127,754,927     $ 6,561,403
Knitting Machinery Company of America LLC [Member]
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Cash Consideration Transferred   $ 250,000   Fair Value of Stock Consideration     1,000,012   Total Consideration   $ 1,250,012             Cash   $ 100,000   Accounts Receivable     155,932   Inventory     517,270   Fixed Assets     90,603   Intangible Assets     150,000   Goodwill     645,372   Total Assets Acquired   $ 1,659,177             Accounts Payable   $ 33,694   Deferred Revenue     375,471   Total Liabilities Assumed   $ 409,165   Total Fair Value     1,250,012             Acquisition transaction costs incurred were:   $ 30,479
Reverso Pumps, Inc. [Member]
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Cash Consideration Transferred   $ 3,951,392   Seller Transaction Costs     230,359   Total Consideration   $ 4,181,751             Accounts Receivable     466,887   Inventory     1,308,822   Fixed Assets     64,710   Prepaid and Other Assets     64,080   Intangible Assets: Customer List & Trademarks     1,300,000   Goodwill     1,572,913   Total Assets Acquired   $ 4,777,412             Accounts Payable   $ 542,359   Accrued Expense     53,302   Total Liabilities Assumed   $ 595,661   Total Fair Value   $ 4,181,751             Acquisition transaction costs incurred were:   $ 124,825

Note 16 - Segment and Related Information (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Twelve Months ended 2023               Industrial                       Commercial     And                       Air     Transportation                       Handling     Products     Corporate     Consolidated   Sales   $ 58,378,593     $ 85,507,341     $ -     $ 143,885,934   Gross Profit     19,123,207       18,522,875       -       37,646,082   Operating Income     15,367,247       7,594,668       (5,029,444 )     17,932,471   Pretax Income     15,367,247       8,173,742       (6,376,841 )     17,164,148   Net Income     10,987,581       6,090,530       (3,783,318 )     13,294,793       Twelve Months ended 2022               Industrial                       Commercial     And                       Air     Transportation                       Handling     Products     Corporate     Consolidated   Sales   $ 47,649,695     $ 80,105,232     $ -     $ 127,754,927   Gross Profit     10,751,822       16,280,959       -       27,032,781   Operating Income     6,670,069       5,955,820       (4,092,417 )     8,533,472   Pretax Income     6,670,069       5,951,335       (4,889,210 )     7,732,194   Net Income     4,769,099       4,253,978       (2,461,674 )     6,561,403       Year Ended     Year Ended       December 31,     December 31,       2023     2022   Capital Expenditures:                 Commercial Air Handling Equipment Segment   $ 250,685     $ 53,591   Industrial and Transportation Products Segment     1,290,742       534,563   Corporate     491,346       154,674   Total Capital Expenditures   $ 2,032,773     $ 742,828                     Depreciation and Amortization:                 Commercial Air Handling Equipment Segment   $ 432,038     $ 431,752   Industrial and Transportation Products Segment     3,344,898       3,151,898   Corporate     144,804       167,155   Total Depreciation and Amortization   $ 3,921,740     $ 3,750,805                     Identifiable Assets:                 Commercial Air Handling Equipment Segment   $ 20,252,946     $ 20,681,082   Industrial and Transportation Products Segment     70,808,054       76,701,530   Corporate     2,578,598       2,215,461   Total Identifiable Assets   $ 93,639,598     $ 99,598,074
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Year Ended     Year Ended       December 31,     December 31,       2023     2022                     United States of America   $ 140,583,071     $ 125,097,522   Puerto Rico     1,665,770       413,684   Canada     975,866       1,175,246   Other     661,227       1,068,475       $ 143,885,934     $ 127,754,927

Note 17 - Quarterly Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Quarterly Financial Information [Table Text Block]	Year Ended December 31, 2023       March 31,     June 30,     September 30,     December 31,       2023     2023     2023     2023                                     Sales   $ 39,484,356     $ 36,933,015     $ 33,641,513     $ 33,827,050   Gross Profit     10,516,552       10,474,878       8,909,332       7,745,321   Operating Income     5,119,267       5,152,364       4,296,968       3,363,871   Net Income     3,391,473       3,851,342       2,814,736       3,237,242   Net Income per Common Share:                                 Basic   $ 0.97     $ 1.10     $ 0.80     $ 0.92   Diluted   $ 0.97     $ 1.09     $ 0.80     $ 0.91       Year Ended December 31, 2022       March 31,     June 30,     September 30,     December 31,       2022     2022     2022     2022                                     Sales   $ 31,002,746     $ 31,902,027     $ 32,189,623     $ 32,660,531   Gross Profit     6,366,405       6,768,491       6,309,803       7,588,082   Operating Income     1,397,321       2,375,527       1,999,678       2,760,946   Net Income     1,065,875       1,171,264       1,254,545       3,069,719   Net Income per Common Share:                                 Basic   $ 0.31     $ 0.34     $ 0.36     $ 0.88   Diluted   $ 0.31     $ 0.34     $ 0.36     $ 0.88

Schedule II - Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Tables
Valuation And Qualifying Accounts Disclosure Table [Table Text Block]	Additions                       Balance at     Charged to                       Beginning     Costs and             Balance at   Description   of Period     Expenses     Deductions     End of Period   Year Ended December 31, 2022   Reserve for doubtful accounts   $ 75,390     $ 68,241     $ -     $ 143,631   Reserve for inventory obsolescence     452,607       905,340       -       1,357,947   Reserve for product warranty     30,383       432,906       (398,289 )     65,000   Valuation allowance for deferred taxes     47,319       -       (8,319 )     39,000   Reserve for uncertain tax positions   $ 590,000     $ -     $ (414,000 )   $ 176,000                                     Year Ended December 31, 2023   Reserve for doubtful accounts   $ 143,631     $ -     $ (38,408 )   $ 105,223   Reserve for inventory obsolescence     1,357,947       58,000       (738,167 )     677,780   Reserve for product warranty     65,000       709,409       (571,796 )     202,613   Valuation allowance for deferred taxes     39,000       -       (6,000 )     33,000   Reserve for uncertain tax positions   $ 176,000     $ -     $ (121,000 )   $ 55,000

Note 2 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022
Contract with Customer, Liability, Current	$ 4,354,868
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Commercial Air Handling [Member]
Number of Customers	9	9
Concentration Risk, Percentage	18.90%	17.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Industrial and Transportation Products [Member]
Number of Customers	9	9
Concentration Risk, Percentage	23.20%	22.50%

Note 2 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue	$ 33,827,050	$ 33,641,513	$ 36,933,015	$ 39,484,356	$ 32,660,531	$ 32,189,623	$ 31,902,027	$ 31,002,746	$ 143,885,934	$ 127,754,927
Transferred over Time [Member]
Revenue									59,572,611	50,236,873
Transferred at Point in Time [Member]
Revenue									$ 84,313,323	$ 77,518,054

Note 2 - Summary of Significant Accounting Policies - Property, Plant and Equipment Useful Lives (Details)	Dec. 31, 2023	Dec. 31, 2022
Building and Building Improvements [Member] | Minimum [Member]
Property, Plant and Equipment Useful Lives (Year)	10 years
Building and Building Improvements [Member] | Maximum [Member]
Property, Plant and Equipment Useful Lives (Year)		40 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment Useful Lives (Year)	3 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment Useful Lives (Year)		20 years

Note 3 - Accounts Receivable (Details Textual) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable, after Allowance for Credit Loss	$ 19,700,000	$ 21,900,000	$ 18,400,000
Accounts Receivable, Allowance for Credit Loss	$ 105,223	$ 143,631	$ 75,930

Note 4 - Inventory - Inventory (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Raw materials and component parts	$ 3,989,444	$ 2,892,820
Work-in-process	4,514,263	5,158,252
Finished products	9,846,694	13,483,017
Total inventory	18,350,401	21,534,089
Less: inventory reserves	677,779	1,357,947
Net inventory	$ 17,672,622	$ 20,176,142

Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill, Impairment Loss	$ 0	$ 0
Goodwill, Period Increase (Decrease)	200,000	1,800,000
Goodwill	16,453,049	16,231,938	$ 14,404,618
Goodwill, Acquired During Period	0	1,997,174
Goodwill, Purchase Accounting Adjustments	221,111	$ (169,854)
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)		1 year
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)		15 years
Acquisition of Global Tek Manufacturing LLC [Member]
Goodwill, Purchase Accounting Adjustments		$ (200,000)
Goodwill Approximation [Member]
Goodwill	$ 16,500,000	$ 16,200,000	$ 14,400,000

Note 5 - Goodwill and Other Intangible Assets - Goodwill By Reportable Segment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Beginning Balance	$ 16,231,938	$ 14,404,618
Acquisitions	0	1,997,174
Adjustments	221,111	(169,854)
Ending Balance	16,453,049	16,231,938
Commercial Air Handling [Member]
Beginning Balance	478,256	478,256
Acquisitions	0	0
Adjustments	0	0
Ending Balance	478,256	478,256
Industrial and Transportation Products [Member]
Beginning Balance	15,753,682	13,926,362
Acquisitions	0	1,997,174
Adjustments	221,111	(169,854)
Ending Balance	$ 15,974,793	$ 15,753,682

Note 5 - Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other intangibles, gross	$ 13,982,899	$ 13,961,649
Less: accumulated amortization	5,730,299	4,469,089	$ 3,203,585
Intangible assets, net	8,252,600	9,492,560
Customer Lists [Member]
Other intangibles, gross	9,316,000	9,316,000
Noncompete Agreements [Member]
Other intangibles, gross	200,000	200,000
Trademarks [Member]
Other intangibles, gross	$ 4,466,899	$ 4,445,649

Note 5 - Goodwill and Other Intangible Assets - Accumulated Amortization (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accumulated amortization at the beginning of the period	$ 4,469,089	$ 3,203,585
Amortization expense	1,261,210	1,265,504
Accumulated amortization at end of period	$ 5,730,299	$ 4,469,089

Note 5 - Goodwill and Other Intangible Assets - Future Amortization Expense (Details)	Dec. 31, 2023 USD ($)
2024	$ 1,261,210
2025	1,261,210
2026	933,345
2027	817,298
2028	$ 759,117

Note 6 - Property, Plant and Equipment, Net (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Depreciation, Total		$ 2,619,244	$ 2,398,445
Common Class A [Member] | Aerospace Tooling Machine [Member] | Air Power Dynamics, LLC [Member]
Stock Issued During Period, Shares, Purchase of Assets (in shares)	7,317
Stock Issued During Period, Value, Purchase of Assets	$ 150,000

Note 6 - Property, Plant and Equipment, Net - Schedule of Property, Plant, and Equipment (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Property Plant and Equipment, Gross	$ 28,842,940	$ 26,754,937
Less: accumulated depreciation	14,156,750	11,541,494
Property plant & equipment, net	14,686,190	15,213,443
Land [Member]
Property Plant and Equipment, Gross	231,034	231,034
Building and Building Improvements [Member]
Property Plant and Equipment, Gross	3,760,203	3,222,243
Machinery and Equipment [Member]
Property Plant and Equipment, Gross	$ 24,851,703	$ 23,301,660

Note 7 - Investments in Equity Securities - Summary of Investment in Equity Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Balance	$ 657,971	$ 1,518,244
Acquisitions, Dispositions and Settlements	0	0
Unrealized Gains Included in Earnings	53,614	(860,273)
Realized Gains Included in Earnings		0
Balance	665,301	$ 657,971
Realized Gains (Losses) Included in Earnings	$ (46,284)

Note 7 - Investments in Equity Securities - Schedule of Fair Value of Investments (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Balance	$ 665,301	$ 657,971	$ 1,518,244
Reported Value Measurement [Member]
Balance	665,301	657,971
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Balance	665,301	657,971
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Balance	0	0
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Balance	$ 0	$ 0

Note 8 - Bank Debt and Notes Payable (Details Textual) - USD ($)			12 Months Ended
	Mar. 02, 2021	Jul. 01, 2018	Dec. 31, 2023	Dec. 31, 2022	Nov. 27, 2023	Nov. 26, 2023	Jan. 15, 2021	Jan. 14, 2021
Payments to Acquire Businesses, Gross			$ (0)	$ 4,331,739
CAD Enterprises, Inc. [Member]
Business Combination, Consideration Transferred, Total		$ 21,000,000
Payments to Acquire Businesses, Gross		$ 12,000,000
Seller Note [Member] | CAD Enterprises, Inc. [Member]
Debt Instrument, Interest Rate, Stated Percentage			4.00%
Notes Payable [Member]
Notes Payable, Total			$ 1,294,435	3,150,377
Notes Payable [Member] | Seller Note [Member]
Notes Payable, Total			0	562,500
J P Morgan Chase Bank [Member]
Line of Credit Facility, Covenant, Maximum Annual Amount Payable in Dividends or Other Restricted Payments					$ 2,000,000	$ 1,250,000
Line of Credit, Covenant, Repurchase of Company Equity					$ 7,000,000
J P Morgan Chase Bank [Member] | Prime Rate [Member] | Term Debt [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
J P Morgan Chase Bank [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Remaining Borrowing Capacity			24,900,000	10,700,000
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.75%
First Francis [Member] | Notes Payable [Member] | Related Party Notes [Member]
Notes Payable, Total								$ 2,077,384
First Francis [Member] | Notes Payable [Member] | Related Party Notes [Member] | Komtek Forge [Member]
Notes Payable, Total								$ 1,702,400
First Francis [Member] | Notes Payable [Member] | Related Party Notes Three [Member]
Notes Payable, Total			$ 1,294,435	$ 2,587,877			$ 3,779,784
Debt Instrument, Interest Rate, Stated Percentage							6.25%

Note 8 - Bank Debt - Summary of Loan Balances (Details) - Bank Debt [Member] - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Total Bank Debt	$ 5,112,187	$ 19,503,341
Less: current portion	0	222,222
Non-current bank debt	5,112,187	19,281,119
Less: unamortized debt costs	15,515	56,801
Net non-current bank debt	5,096,672	19,224,318
Term Debt [Member]
Total Bank Debt	0	222,222
Line of Credit [Member]
Total Bank Debt	$ 5,112,187	$ 19,281,119

Note 8 - Bank Debt and Notes Payable - Notes Payable (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Jan. 15, 2021
Less current portion	$ 824,226	$ 1,303,972
Notes Payable [Member]
Notes payable	1,294,435	3,150,377
Less current portion	824,226	1,303,972
Notes payable – non-current portion	470,209	1,846,405
Notes Payable [Member] | Related Party Notes Three [Member] | First Francis [Member]
Notes payable	1,294,435	2,587,877	$ 3,779,784
Notes Payable [Member] | Seller Note [Member]
Notes payable	$ 0	$ 562,500

Note 8 - Bank Debt and Notes Payable - Notes Payable (Details) (Parentheticals) - Notes Payable [Member] - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Related Party Notes Three [Member] | First Francis [Member]
Notes payable, face value	$ 3,779,784	$ 3,779,784
Seller Note [Member]
Notes payable, face value	$ 9,000,000	$ 9,000,000

Note 8 - Bank Debt and Notes Payable - Principal Payments on Notes Payable (Details) - Notes Payable [Member]	Dec. 31, 2023 USD ($)
2027	$ 0
Related Party Notes [Member]
2024	824,226
2025	470,209
2026	0
Total principal payments	1,294,435
Seller Note [Member]
2024	824,226
2025	470,209
2026	0
Total principal payments	$ 1,294,435

Note 9 - Leases (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Lessee, Operating and Finance Lease, Renewal Term (Year)	10 years
Operating Lease, Expense	$ 2.2	$ 2.0
Minimum [Member]
Operating and Finance Lease, Remaining Term (Year)	2 years
Maximum [Member]
Lessee, Operating and Finance Lease, Renewal Term (Year)	10 years

Note 9 - Leases - Lease Assets and Liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Operating lease right-of-use assets, net	$ 8,356,903	$ 9,524,280
Other current liabilities	1,714,174	1,705,224
Operating lease liabilities	$ 6,901,043	$ 8,060,152
Operating Leases (in years) (Year)	7 years 1 month 6 days	7 years 8 months 12 days
Operating Leases	5.00%	5.00%
Other Current Liabilities [Member]
Other current liabilities	$ 1,714,174	$ 1,705,224
Operating Lease Liabilities [Member]
Operating lease liabilities	6,901,043	8,060,152
Other Current Liabilities and Operating Lease Liabilities [Member]
Total operating lease liabilities	$ 8,615,217	$ 9,765,376

Note 9 - Leases - Schedule of Future Minimum Lease Payments (Details)	Dec. 31, 2023 USD ($)
2024, operating lease	$ 2,105,239
2025, operating lease	2,061,125
2026, operating lease	1,521,090
2027, operating lease	845,957
2028, operating lease	636,577
Thereafter	3,059,965
Total future minimum lease payments	10,229,953
Less: imputed interest	(1,614,736)
Other Current Liabilities and Operating Lease Liabilities [Member]
Total	$ 8,615,217

Note 10 - Shareholders' Equity (Details Textual)	Dec. 31, 2023 $ / shares shares	Dec. 31, 2022 shares	Dec. 31, 2019 shares
Preferred Stock, Shares Authorized (in shares)			1,000,000
Common Class A [Member]
Common Stock, Shares Authorized (in shares)	10,000,000	10,000,000	10,000,000
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	1,002,848	1,002,848
Common Stock, Voting Rights, per Share	1
Common Class A [Member] | Minimum [Member]
Dividends Payable, Amount Per Share (in dollars per share) | $ / shares	$ 0.1
Common Class B [Member]
Common Stock, Shares Authorized (in shares)	2,500,000	2,500,000	2,500,000
Common Stock, Voting Rights, per Share	3

Note 11 - Stock Compensation (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Nov. 20, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)	0	0
Share-Based Payment Arrangement, Expense		$ 1,377,423	$ 957,728
Omnibus 2023 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year)	10 years
Common Class A [Member]
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	1,002,848	1,002,848	1,002,848
Common Class A [Member] | Omnibus 2023 Equity Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance (in shares)				350,000

Note 11 - Stock Compensation - Compensation Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Class A shares issued to Directors and employees related to stock compensation plans (in shares)	0	0
Non-cash stock compensation expense	$ 1,377,423	$ 957,728
Common Class A [Member] | Common Stock [Member]
Class A shares issued to Directors and employees related to stock compensation plans (in shares)	34,700	32,200

Note 11 - Stock Compensation - Treasury Stock (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share repurchase (in shares)	0	0
Treasury Stock, Common [Member]
Share repurchase (in shares)	0	0
Common Class A [Member]
Balance at December 31, 2021 (in shares)	47,412
Balance at December 31, 2022 (in shares)	54,074	47,412
Common Class A [Member] | Treasury Stock, Common [Member]
Balance at December 31, 2021 (in shares)	47,412	41,844
Share repurchase (in shares)	6,662	5,568
Balance at December 31, 2022 (in shares)	54,074	47,412
Common Class B [Member]
Balance at December 31, 2021 (in shares)	182,435
Balance at December 31, 2022 (in shares)	182,435	182,435
Common Class B [Member] | Treasury Stock, Common [Member]
Balance at December 31, 2021 (in shares)	182,435	182,435
Share repurchase (in shares)	0	0
Balance at December 31, 2022 (in shares)	182,435	182,435

Note 12 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense (Benefit)	$ 3,869,355	$ 1,170,791
Current Income Tax Expense (Benefit)	4,817,023	2,629,560
Deferred Income Tax Expense (Benefit)	$ 947,668	$ 1,458,769
Effective Income Tax Rate Reconciliation, Percent	22.50%	15.10%
SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward [Member]
Tax Credit Carryforward, Valuation Allowance	$ 33,000,000,000	$ 39,000,000,000
Valuation Allowance, Reserve for Uncertain Tax Position [Member]
Tax Credit Carryforward, Valuation Allowance	$ 55,000,000,000	$ 176,000,000,000

Note 12 - Income Taxes - Income Tax Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Before Provision for Income Taxes	$ 17,164,148	$ 7,732,194
Statutory rate	21.00%	21.00%
Tax at statutory rate	$ 3,604,471	$ 1,623,761
State taxes, net of federal benefit	302,484	20,438
Release of FIN 48 reserve	(121,000)	(414,000)
Deferred Adjustments	125,935	0
Permanent differences	(299,103)	(17,334)
Return to provision adjustments	262,552	(22,681)
Other	(5,984)	(19,393)
Provision for income taxes	$ 3,869,355	$ 1,170,791

Note 12 - Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Inventories	$ 176,022	$ 221,441
Bad debts	23,197	5,757
Accrued liabilities	527,320	677,728
Prepaid expense	(103,037)	(136,419)
Depreciation and amortization	(2,464,503)	(3,111,224)
Capitalized Costs	496,897	629,085
Research and development and other credit carryforwards	1,067,816	443,689
Right of use lease accounting	(149,876)	(80,376)
Directors stock option plan	203,914	180,761
Total deferred tax liability	(222,250)	(1,169,558)
Valuation allowance	(33,000)	(39,000)
Reserve for uncertain tax positions	(55,000)	(176,000)
Total reserves & allowances	(88,000)	(215,000)
Net deferred tax liability, net of reserves	$ (310,250)	$ (1,384,558)

Note 12 - Income Taxes - Net Operating Loss and Tax Credit Carryforwards (Details)	Dec. 31, 2023 USD ($)
State and Local Jurisdiction [Member]
Net Operating Loss	$ 0
State and Local Jurisdiction [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	33,000
Expires in Tax Year 2024 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2024 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2025 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2025 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2026 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2026 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2027 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2027 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2028 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2028 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2029 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2029 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2030 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2030 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2031 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2031 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2032 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2032 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2033 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2033 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2034 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	3,000
Expires in Tax Year 2034 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2035 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	0
Expires in Tax Year 2035 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2036 [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	0
Expires in Tax Year 2036 [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	0
Expires in Tax Year 2037 [Member]
Net Operating Loss	0
Expires in 2038 and Beyond [Member] | Research & Development & Other Tax Credits [Member]
Net Operating Loss	0
Expires in 2038 and Beyond [Member] | State and Local Jurisdiction [Member]
Net Operating Loss	$ 0

Note 13 - Earnings Per Common Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements (in shares)	18,953	0
Share-Based Payment Arrangement, Option [Member]
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements (in shares)	0	0

Note 13 - Earnings Per Common Share - Summary of Earnings Per Share Calculation (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income available to common stockholders									$ 13,294,793	$ 6,561,403
Weighted Average Shares of Common Stock Outstanding (in shares)									3,507,883	3,462,868
Net Income Per Common Share - Basic (in dollars per share)	$ 0.92	$ 0.8	$ 1.1	$ 0.97	$ 0.88	$ 0.36	$ 0.34	$ 0.31	$ 3.79	$ 1.89
Unvested Restricted Stock Awards (in shares)									18,953	0
Weighted Average Shares of Common Stock Outstanding - Diluted (in shares)									3,526,836	3,462,868
Income available to common stockholders									$ 13,294,793	$ 6,561,403
Net Income Per Common Share - Diluted (in dollars per share)	$ 0.91	$ 0.8	$ 1.09	$ 0.97	$ 0.88	$ 0.36	$ 0.34	$ 0.31	$ 3.77	$ 1.89

Note 14 - Employee Benefit Plans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 389,179	$ 359,965
United Steelworkers Pension Fund [Member]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 66,362	$ 55,914

Note 15 - Acquisitions (Details Textual) - USD ($)			12 Months Ended
	May 01, 2022	Jan. 10, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Payments to Acquire Businesses, Gross			$ (0)	$ 4,331,739
Goodwill			16,453,049	16,231,938	$ 14,404,618
Goodwill, Purchase Accounting Adjustments			221,111	(169,854)
Reverso Pumps, Inc. [Member]
Payments to Acquire Businesses, Gross		$ 3,951,392
Goodwill		1,572,913
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total		1,300,000
Reverso Pumps, Inc. [Member] | Customer Lists [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total		500,000
Reverso Pumps, Inc. [Member] | Trademarks [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total		800,000
Knitting Machinery Company of America LLC [Member]
Payments to Acquire Businesses, Gross	$ 250,000
Goodwill	600,000		600,000	$ 400,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	$ 150,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	38,462
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	$ 1,000,012
Goodwill, Purchase Accounting Adjustments			$ 200,000
Knitting Machinery Company of America LLC [Member] | Customer Lists [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	75,000.000
Knitting Machinery Company of America LLC [Member] | Trademarks [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 75,000.000
Separ America [Member] | Reverso Pumps, Inc. [Member]
Payments to Acquire Businesses, Gross		1,600,000
Goodwill		1,600,000
Reverso Asset Purchase Agreement [Member] | Reverso Pumps, Inc. [Member]
Asset Acquisition, Consideration Transferred, Total		$ 2,600,000

Note 15 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Reverso Pumps LLC (Details) - USD ($)		12 Months Ended
	Jan. 10, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Consideration Transferred		$ (0)	$ 4,331,739
Goodwill		$ 16,453,049	$ 16,231,938	$ 14,404,618
Reverso Pumps, Inc. [Member]
Cash Consideration Transferred	$ 3,951,392
Seller Transaction Costs	230,359
Total Consideration	4,181,751
Accounts Receivable	466,887
Inventory	1,308,822
Fixed Assets	64,710
Prepaid and Other Assets	64,080
Intangible Assets: Customer List & Trademarks	1,300,000
Goodwill	1,572,913
Total Assets Acquired	4,777,412
Accounts Payable	542,359
Accrued Expense	53,302
Total Liabilities Assumed	595,661
Total Fair Value	4,181,751
Acquisition transaction costs incurred were:	$ 124,825

Note 15 - Acquisitions - Summary Assets Acquired and Liabilities Assumed of Knitting Machinery (Details) - USD ($)		12 Months Ended
	May 01, 2022	Dec. 31, 2023	Dec. 31, 2022
Cash Consideration Transferred		$ (0)	$ 4,331,739
Knitting Machinery Company of America LLC [Member]
Cash Consideration Transferred	$ 250,000
Fair Value of Stock Consideration	1,000,012
Total Consideration	1,250,012
Cash	100,000
Accounts Receivable	155,932
Inventory	517,270
Fixed Assets	90,603
Intangible Assets	150,000
Goodwill	645,372
Total Assets Acquired	1,659,177
Accounts Payable	33,694
Deferred Revenue	375,471
Total Liabilities Assumed	409,165
Total Fair Value	1,250,012
Acquisition transaction costs incurred were:	$ 30,479

Note 15 - Acquisitions - Revenue and Net Income of Acquired Entities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	$ 143,885,934	$ 127,754,927
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	13,294,793	6,561,403
Reverso Pumps, Inc. [Member]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	6,527,485	5,467,426
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	1,141,472	876,558
Separ America [Member]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	2,339,485	1,746,551
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	744,663	353,239
Knitting Machinery Company of America LLC [Member]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	633,573	1,022,603
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	33,579	82,830
Acquired Entities [Member]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	9,500,543	8,236,580
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	1,919,714	1,312,627
All Other Entities [Member]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	134,385,391	119,518,347
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	$ 11,375,079	$ 5,248,776

Note 16 - Segment and Related Information (Details Textual)	12 Months Ended
	Dec. 31, 2023
Number of Reportable Segments	2

Note 16 - Segment and Related Information - Information by Industry Segment (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue	$ 33,827,050	$ 33,641,513	$ 36,933,015	$ 39,484,356	$ 32,660,531	$ 32,189,623	$ 31,902,027	$ 31,002,746	$ 143,885,934	$ 127,754,927
Gross Profit	7,745,321	8,909,332	10,474,878	10,516,552	7,588,082	6,309,803	6,768,491	6,366,405	37,646,082	27,032,781
Operating Income	3,363,871	4,296,968	5,152,364	5,119,267	2,760,946	1,999,678	2,375,527	1,397,321	17,932,471	8,533,472
Pretax Income									17,164,148	7,732,194
Net Income	3,237,242	$ 2,814,736	$ 3,851,342	$ 3,391,473	3,069,719	$ 1,254,545	$ 1,171,264	$ 1,065,875	13,294,793	6,561,403
Capital Expenditures									2,032,773	742,828
Depreciation and Amortization									3,921,740	3,750,805
Identifiable Assets	93,639,598				99,598,074				93,639,598	99,598,074
Corporate, Non-Segment [Member]
Capital Expenditures									491,346	154,674
Depreciation and Amortization									144,804	167,155
Identifiable Assets	2,578,598				2,215,461				2,578,598	2,215,461
Commercial Air Handling Equipment [Member] | Operating Segments [Member]
Capital Expenditures									250,685	53,591
Depreciation and Amortization									432,038	431,752
Identifiable Assets	20,252,946				20,681,082				20,252,946	20,681,082
Industrial and Transportation Products Segment [Member] | Operating Segments [Member]
Capital Expenditures									1,290,742	534,563
Depreciation and Amortization									3,344,898	3,151,898
Identifiable Assets	$ 70,808,054				$ 76,701,530				70,808,054	76,701,530
Commercial Air Handling [Member]
Revenue									58,378,593	47,649,695
Gross Profit									19,123,207	10,751,822
Operating Income									15,367,247	6,670,069
Pretax Income									15,367,247	6,670,069
Net Income									10,987,581	4,769,099
Industrial and Transportation Products [Member]
Revenue									85,507,341	80,105,232
Gross Profit									18,522,875	16,280,959
Operating Income									7,594,668	5,955,820
Pretax Income									8,173,742	5,951,335
Net Income									6,090,530	4,253,978
Corporate and Other [Member]
Revenue										0
Gross Profit									0	0
Operating Income									(5,029,444)	(4,092,417)
Pretax Income									(6,376,841)	(4,889,210)
Net Income									$ (3,783,318)	$ (2,461,674)

Note 16 - Segment and Related Information - Geographical Information (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue	$ 33,827,050	$ 33,641,513	$ 36,933,015	$ 39,484,356	$ 32,660,531	$ 32,189,623	$ 31,902,027	$ 31,002,746	$ 143,885,934	$ 127,754,927
UNITED STATES
Revenue									140,583,071	125,097,522
PUERTO RICO
Revenue									1,665,770	413,684
CANADA
Revenue									975,866	1,175,246
Other Foreign Countries [Member]
Revenue									$ 661,227	$ 1,068,475

Note 17 - Quarterly Data (Unaudited) - Summary of Quarterly Data (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue	$ 33,827,050	$ 33,641,513	$ 36,933,015	$ 39,484,356	$ 32,660,531	$ 32,189,623	$ 31,902,027	$ 31,002,746	$ 143,885,934	$ 127,754,927
Gross Profit	7,745,321	8,909,332	10,474,878	10,516,552	7,588,082	6,309,803	6,768,491	6,366,405	37,646,082	27,032,781
Operating Income	3,363,871	4,296,968	5,152,364	5,119,267	2,760,946	1,999,678	2,375,527	1,397,321	17,932,471	8,533,472
Net Income	$ 3,237,242	$ 2,814,736	$ 3,851,342	$ 3,391,473	$ 3,069,719	$ 1,254,545	$ 1,171,264	$ 1,065,875	$ 13,294,793	$ 6,561,403
Net Income Per Common Share - Basic (in dollars per share)	$ 0.92	$ 0.8	$ 1.1	$ 0.97	$ 0.88	$ 0.36	$ 0.34	$ 0.31	$ 3.79	$ 1.89
Net Income Per Common Share - Diluted (in dollars per share)	$ 0.91	$ 0.8	$ 1.09	$ 0.97	$ 0.88	$ 0.36	$ 0.34	$ 0.31	$ 3.77	$ 1.89

Note 18 - Subsequent Events (Details Textual) $ in Millions	Jan. 02, 2024 USD ($)
Subsequent Event [Member]
Payments to Acquire Productive Assets	$ 7

Schedule II - Valuation and Qualifying Accounts - Schedule (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
Balance at Beginning of Period	$ 143,631	$ 75,390
Charged to Costs and Expenses	0	68,241
Deductions	(38,408)	0
Balance at End of Period	105,223	143,631
SEC Schedule, 12-09, Reserve, Inventory [Member]
Balance at Beginning of Period	1,357,947	452,607
Charged to Costs and Expenses	58,000	905,340
Deductions	(738,167)	0
Balance at End of Period	677,780	1,357,947
SEC Schedule, 12-09, Reserve, Warranty [Member]
Balance at Beginning of Period	65,000	30,383
Charged to Costs and Expenses	709,409	432,906
Deductions	(571,796)	(398,289)
Balance at End of Period	202,613	65,000
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member]
Balance at Beginning of Period	39,000	47,319
Charged to Costs and Expenses	0	0
Deductions	(6,000)	(8,319)
Balance at End of Period	33,000	39,000
Reserve for Uncertain Tax Positions [Member]
Balance at Beginning of Period	176,000	590,000
Charged to Costs and Expenses	0	0
Deductions	(121,000)	(414,000)
Balance at End of Period	$ 55,000	$ 176,000

---