What changed in this filing

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Item 1. Business

2021-01-29 compared with 2020-01-31 · 54 added, 51 removed, 83 unchanged (56% of the section changed)

6 unchanged sentences

Nobilitys homes are available

in approximately 100 active models sold under the trade names Kingswood, Richwood, Tropic Isle, Regency Manor, and Special Edition. The homes, ranging in size from 431 to 2,650 square feet

and containing from one to five bedrooms, are available in:

in approximately 100 active models sold under the trade names Kingswood, Richwood, Tropic Isle, Regency Manor, and Tropic Manor. The homes, ranging in size from 431 to 2,800 square feet and

containing from one to five bedrooms, are available in:

Single-wide widths of 14 and 16 feet ranging from 35 to 72 feet in length;

1 unchanged sentence

Triple-wide widths of 42 feet ranging from 60 to 72 feet in length;

Quad-unit with 2 sections 28 feet wide by 40 feet long and 2 sections 28 feet wide by 52 feet long.

Quad-unit with 2 sections 28 feet wide from 40 to 48 feet long and 2 sections 28 feet wide by 52 feet long.

Our floor plans can be built as an on-frame modular home.

31 unchanged sentences

its retail sales centers and leases the remaining four retail sales centers from unaffiliated parties under leases with terms between one and three years with renewal options.

In December 2017 Prestige executed a lease to open an eleventh retail sales center in north Florida and has not yet opened the retail sales center due to

backlog at the manufacturing facility.

The primary customers of Prestige are homebuyers who generally purchase manufactured homes to place on their

own home sites.

Prestige operates its retail sales centers with a model home concept.

The primary customers of Prestige are homebuyers who generally purchase manufactured homes to place on their own home sites.

Prestige operates its retail

sales centers with a model home concept.

Each of the homes displayed at its retail sales centers is furnished and decorated as a model home.

Although the model homes may be purchased from Prestiges

model home inventory, generally, customers order homes which are shipped directly from the factory to their home site.

Prestige sales generally are to purchasers living within a radius of approximately 100 miles from the selling retail lot.

Companys internet-based marketing program generates numerous leads which are directed to the Prestige retail sales centers to assist a potential buyer in purchasing a home.

Although the model homes may be purchased from Prestiges model home inventory, generally,

customers order homes which are shipped directly from the factory to their home site.

Prestige sales generally are to purchasers living within a radius of approximately 100 miles from the selling

The Companys internet-based marketing program generates numerous leads which are directed to the Prestige retail sales centers to assist a potential buyer in purchasing a home.

The retail sale of manufactured homes is a highly competitive business.

9 unchanged sentences

sign any recourse agreements with any of these retail financing sources.

Investments in Limited Partnerships

On October 30, 2019, the Company sold its 31.3% investment interest in Walden Woods South to certain related parties and existing owners, including the

Companys Executive Vice President, who purchased the majority of the 31.3% interest.

The transaction value was based on a 3rd party appraisal, and the Company received $1,510,000 in cash.

The Companys investment historically was

accounted for under the equity method, which was suspended when the carrying amount was reduced to $nil due to continued losses.

(see Note 4 to the Companys financial statements included herein).

Insurance and Financial Services

Mountain Financial,

Inc., a wholly-owned subsidiary of Prestige Home Centers, Inc., is an independent insurance agent and licensed mortgage loan originator.

Its principal activity is providing retail insurance services, which involves placing various types of

insurance, including property and casualty, automobile and extended home warranty coverage, with insurance underwriters on behalf of its Prestige customers in connection with their purchase and financing of manufactured homes.

As agent, we solely

assist our customers in obtaining various types of insurance and extended warranty coverage with insurance underwriters.

As such, we have no agreements with homeowners and/or third party insurance companies other than agency agreements with various

insurance carriers.

The Company provides appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience and other information, which is periodically evaluated and

adjusted as deemed necessary.

Mountain Financial, Inc., a wholly-owned subsidiary of Prestige Home Centers, Inc., is an independent insurance agent and licensed mortgage loan originator.

Its principal activity is providing retail insurance services, which involves placing various types of insurance, including property and casualty, automobile and extended home warranty coverage, with insurance underwriters on behalf of its Prestige

customers in connection with their purchase and financing of manufactured homes.

As agent, we solely assist our customers in obtaining various types of insurance and extended warranty coverage with insurance underwriters.

As such, we have no

agreements with homeowners and/or third party insurance companies other than agency agreements with various insurance carriers.

The Company provides appropriate reserves for policy cancellations based on numerous factors, including past transaction

history with customers, historical experience and other information, which is periodically evaluated and adjusted as deemed necessary.

In the opinion of management, no reserve was deemed necessary for policy cancellations for fiscal years 2020 and

8 unchanged sentences

In order to stimulate sales, Nobility

sells homes for display to related manufactured home communities on extended terms and recognizes revenue when the homes are sold to the end users.

The high visibility of Nobilitys homes in such communities generates additional sales of its

homes through such dealers.

The manufacture, distribution and sale of homes are subject to governmental regulation at the federal, state and local levels.

The Department of Housing and

Urban Development (HUD) has adopted national construction and safety standards that preempt state standards.

sells homes for display to related party manufactured home communities on extended terms and recognizes revenue when the homes are sold to the end users.

The high visibility of Nobilitys homes in such communities generates additional sales of

its homes through such dealers.

manufacture, distribution and sale of homes are subject to governmental regulation at the federal, state and local levels.

The Department of Housing and Urban Development (HUD) has adopted national construction and safety standards that preempt

state standards.

In addition, HUD regulations require that manufactured homes be constructed to more stringent wind load and thermal standards.

with these standards involves approval by a HUD approved engineering firm of engineering plans and specifications on all models.

HUD has also promulgated rules requiring producers of manufactured homes to utilize wood products certified by their

suppliers to meet HUDs established limits on formaldehyde emissions and to place in each home written notice to prospective purchasers of possible adverse reaction from airborne formaldehyde in homes.

HUDs standards also require periodic

inspection by state or other third party inspectors of plant facilities and construction procedures, as well as inspection of manufactured home units during construction.

In addition, some components of manufactured homes may also be subject to

Consumer Product Safety Commission standards and recall requirements.

Modular homes manufactured by Nobility are required to comply with the Florida Building Code established by the Florida Department of Business and Professional Regulations.

Nobility estimates that compliance with federal, state and local environmental protection laws will have no material effect upon capital expenditures for

plant or equipment modifications or earnings for the next fiscal year.

The transportation of manufactured homes is subject to state regulation.

Generally, special permits must be obtained to transport the home over public highways and restrictions are imposed to promote travel safety including restrictions relating to routes, travel periods, speed limits, safety equipment and size.

Nobilitys homes are subject to the requirements of the Magnuson-Moss Warranty Act and Federal Trade Commission rulings which regulate warranties on

consumer products.

Compliance with these standards involves approval by a HUD approved engineering firm of engineering plans

and specifications on all models.

HUD has also promulgated rules requiring producers of manufactured homes to utilize wood products certified by their suppliers to meet HUDs established limits on formaldehyde emissions.

HUDs standards

also require periodic inspection by state or other third party inspectors of plant facilities and construction procedures, as well as inspection of manufactured home units during construction.

In addition, some components of manufactured homes may

also be subject to Consumer Product Safety Commission standards and recall requirements.

Modular homes manufactured by Nobility are required to comply with the Florida Building Code established by the Florida Department of Business and Professional

Nobility estimates that compliance with federal, state and local environmental protection laws will have no material effect upon capital

expenditures for plant or equipment modifications or earnings for the next fiscal year.

The transportation of manufactured homes is subject to state

Nobilitys homes are subject to the requirements of the Magnuson-Moss Warranty Act and Federal Trade

Commission rulings which regulate warranties on consumer products.

Nobility provides a limited warranty of one year on the structural components of its homes.

The coronavirus (COVID-19) pandemic resulted in government authorities implementing numerous measures to

try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, and shutdowns.

Although we were deemed an essential business and never closed our manufacturing plant or retail sales centers, these measures had a

negative impact on customer traffic (and corresponding sales) within our centers and the operations of our business partners.

There is considerable uncertainty regarding the impact, and expected duration, of such measures and potential future

measures, which could cause disruptions to our business in the future.

The manufactured home industry is highly competitive.

9 unchanged sentences

Approximately 78 employees are factory personnel

compared to approximately 86 in such positions a year ago and 58 are in management, administrative, supervisory, sales and clerical positions (including 29 management and sales personnel employed by Prestige) compared to approximately 63 a year ago.

compared to approximately 81 in such positions a year ago and 69 are in management, administrative, supervisory, sales and clerical positions compared to approximately 58 a year ago.

In addition, Nobility employs part-time employees when necessary.

The Company has managerial, administrative, supervisory, sales and manufacturing employees.

Historically, we have had low turnover rates with our

employees, other than with respect to our manufacturing employees.

It is currently difficult for us to attract long-term quality employees for our manufacturing operations, although to date, we have not experienced any disruption in production

as a result of the inability to find labor.

We are working on developing programs designed to cause less turnover, although have not been successful to date.

We have a focus on safety and being drug free in our manufacturing operations.

Nobility makes contributions toward employees group health and life insurance.

Nobility, which is not subject to any collective bargaining agreements, has not experienced any work stoppage or labor disputes and considers its relationship with employees to be generally satisfactory.

Nobility, which is not subject to any collective bargaining agreements,

has not experienced any work stoppage or labor disputes and considers its relationship with employees to be generally satisfactory.

As a smaller reporting company, we are not required to provide the information required by this item.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business