Document And Entity Information
Document And Entity Information - USD ($) | Oct. 31, 2019 | Jan. 20, 2020 | Apr. 30, 2019 |
Document Information [Line Items] | |||
Entity Registrant Name | OPTICAL CABLE CORPORATION | ||
Document, Type | 10-K | ||
Document, Annual Report | true | ||
Document, Transition Report | false | ||
Document, Period End Date | Oct. 31, 2019 | ||
Entity, File Number | 0-27022 | ||
Entity, Incorporation, State or Country Code | VA | ||
Entity, Tax Identification Number | 54-1237042 | ||
Entity, Address, Address Line One | 5290 Concourse Drive | ||
Entity, Address, City or Town | Roanoke | ||
Entity, Address, State or Province | VA | ||
Entity, Address, Postal Zip Code | 24019 | ||
City Area Code | 540 | ||
Local Phone Number | 265-0690 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | OCC | ||
Security Exchange Name | NASDAQ | ||
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 | ||
Entity, Shell Company | false | ||
Entity, Public Float | $ 28,104,347 | ||
Entity, Common Stock Shares, Outstanding | 7,458,981 | ||
Documents Incorporated By Reference Text Block | Portions of the Company’s Annual Report filed as Exhibit 13.1 to this report on Form 10-K are incorporated by reference in Part II of this Form 10-K Report: “Corporate Information,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Consolidated Financial Statements,” “Notes to Consolidated Financial Statements,” and “Report of Independent Registered Public Accounting Firm.” In addition, portions of the Company’s Proxy Statement for the 2020 Annual Meeting of Shareholders are incorporated by reference in Part III of this Form 10-K Report: “Election of Directors,” “Beneficial Ownership of Securities,” “Compensation of Executive Officers,” “Compensation of Directors,” “Compliance with Section 16(a) of the Securities Exchange Act of 1934,” “Code of Ethics,” “Executive Compensation,” “Beneficial Ownership of Securities,” “Equity Compensation Plans Information,” “Certain Relationships and Related Transactions,” “Independent Registered Public Accounting Firm,” and “Audit Committee Pre-approval of Audit and Permissible Non-audit Services of Independent Registered Public Accounting Firm.” | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001000230 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Current assets: | ||
Cash | $ 537,330 | $ 177,413 |
Trade accounts receivable, net of allowance for doubtful accounts of $99,562 in 2019 and $64,242 in 2018 | 10,347,597 | 12,832,890 |
Income taxes refundable - current | 25,004 | 0 |
Other receivables | 69,727 | 61,951 |
Inventories | 18,095,627 | 17,474,755 |
Prepaid expenses and other assets | 304,713 | 500,021 |
Total current assets | 29,379,998 | 31,047,030 |
Property and equipment, net | 10,010,223 | 11,204,639 |
Income taxes refundable - noncurrent | 25,003 | 49,281 |
Intangible assets, net | 659,280 | 635,035 |
Other assets, net | 32,430 | 162,475 |
Total assets | 40,106,934 | 43,098,460 |
Current liabilities: | ||
Current installments of long-term debt | 738,955 | 260,954 |
Note payable to bank - current | 5,650,000 | 0 |
Accounts payable and accrued expenses | 5,459,352 | 3,256,153 |
Accrued compensation and payroll taxes | 1,763,338 | 3,489,070 |
Income taxes payable | 15,382 | 21,666 |
Total current liabilities | 13,627,027 | 7,027,843 |
Note payable to bank - noncurrent | 0 | 3,000,000 |
Long-term debt, excluding current installments | 5,169,668 | 6,158,630 |
Other noncurrent liabilities | 71,339 | 101,150 |
Total liabilities | 18,868,034 | 16,287,623 |
Shareholders’ equity: | ||
Preferred stock, no par value, authorized 1,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, no par value, authorized 50,000,000 shares; issued and outstanding 7,458,981 shares in 2019 and 7,694,387 shares in 2018 | 13,853,334 | 13,816,140 |
Retained earnings | 7,385,566 | 12,994,697 |
Total shareholders’ equity | 21,238,900 | 26,810,837 |
Commitments and contingencies | ||
Total liabilities and shareholders’ equity | $ 40,106,934 | $ 43,098,460 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands | Oct. 31, 2019 | Oct. 31, 2018 |
Allowance for doubtful accounts | $ 99,562 | $ 64,242 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 7,458,981 | 7,694,387 |
Common stock, shares outstanding (in shares) | 7,458,981 | 7,694,387 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Net sales | $ 71,324,446 | $ 87,828,590 | $ 64,092,848 |
Cost of goods sold | 53,019,699 | 59,955,390 | 43,294,921 |
Gross profit | 18,304,747 | 27,873,200 | 20,797,927 |
Selling, general and administrative expenses | 23,434,360 | 26,130,956 | 21,968,757 |
Royalty (income) expense, net | (6,510) | (32,898) | 120,478 |
Amortization of intangible assets | 38,598 | 34,768 | 25,704 |
Income (loss) from operations | (5,161,701) | 1,740,374 | (1,317,012) |
Other expense, net: | |||
Interest expense | (521,142) | (608,417) | (523,035) |
Other, net | 7,717 | (79,855) | 95,838 |
Other expense, net | (513,425) | (688,272) | (427,197) |
Income (loss) before income taxes | (5,675,126) | 1,052,102 | (1,744,209) |
Total Net Income Tax Expense (Benefit) | (5,805) | (16,651) | (5,438) |
Net income (loss) | $ (5,669,321) | $ 1,068,753 | $ (1,738,771) |
Net income (loss) per share - basic and diluted (in dollars per share) | $ (0.77) | $ 0.14 | $ (0.27) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Total |
Balances (in shares) at Oct. 31, 2016 | 7,081,159 | ||
Balances at Oct. 31, 2016 | $ 11,080,595 | $ 13,684,394 | $ 24,764,989 |
Share-based compensation, net (in shares) | 240,147 | ||
Share-based compensation, net | $ 681,426 | 0 | 681,426 |
Repurchase and retirement of common stock (at cost) (in shares) | (5,701) | ||
Repurchase and retirement of common stock (at cost) | $ 0 | (18,122) | (18,122) |
Net income (loss) | $ 0 | (1,738,771) | (1,738,771) |
Balances (in shares) at Oct. 31, 2017 | 7,315,605 | ||
Balances at Oct. 31, 2017 | $ 11,762,021 | 11,927,501 | 23,689,522 |
Share-based compensation, net (in shares) | 379,054 | ||
Share-based compensation, net | $ 2,054,119 | 0 | 2,054,119 |
Repurchase and retirement of common stock (at cost) (in shares) | (272) | ||
Repurchase and retirement of common stock (at cost) | $ 0 | (1,557) | (1,557) |
Net income (loss) | $ 0 | 1,068,753 | 1,068,753 |
Balances (in shares) at Oct. 31, 2018 | 7,694,387 | ||
Balances at Oct. 31, 2018 | $ 13,816,140 | 12,994,697 | 26,810,837 |
Share-based compensation, net (in shares) | (235,055) | ||
Share-based compensation, net | $ 37,194 | 0 | $ 37,194 |
Repurchase and retirement of common stock (at cost) (in shares) | (351) | (351) | |
Repurchase and retirement of common stock (at cost) | $ 0 | (1,573) | $ (1,573) |
Net income (loss) | 0 | (5,669,321) | (5,669,321) |
Adoption of accounting standard ASC 606 | $ 0 | 61,763 | 61,763 |
Balances (in shares) at Oct. 31, 2019 | 7,458,981 | ||
Balances at Oct. 31, 2019 | $ 13,853,334 | $ 7,385,566 | $ 21,238,900 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (5,669,321) | $ 1,068,753 | $ (1,738,771) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 1,720,562 | 1,817,597 | 1,675,519 |
Bad debt expense (recovery) | 60,381 | (18,455) | 21,569 |
Share-based compensation expense | 980,549 | 2,224,620 | 787,100 |
Loss on sale of property and equipment | 2,058 | 56,710 | 103,145 |
(Increase) decrease in: | |||
Trade accounts receivable | 2,424,912 | (3,873,895) | (45,864) |
Other receivables | (7,776) | 10,147 | (1,270) |
Income taxes refundable | (726) | (49,281) | 0 |
Inventories | (620,872) | (693,306) | (1,757,483) |
Prepaid expenses and other assets | 243,778 | (81,899) | 13,658 |
Other assets | 21,473 | 0 | 0 |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | 2,323,012 | 622,444 | (78,129) |
Accrued compensation and payroll taxes | (1,725,732) | 2,148,321 | 160,877 |
Income taxes payable | (6,284) | 6,516 | (453) |
Other noncurrent liabilities | (29,811) | (32,024) | 173,031 |
Net cash provided by (used in) operating activities | (283,797) | 3,206,248 | (687,071) |
Cash flows from investing activities: | |||
Purchase of and deposits for the purchase of property and equipment | (487,554) | (688,856) | (508,909) |
Investment in intangible assets | (62,843) | (45,539) | (74,958) |
Net cash used in investing activities | (550,397) | (734,395) | (583,867) |
Cash flows from financing activities: | |||
Payroll taxes withheld and remitted on share-based payments | (943,355) | (170,501) | (105,674) |
Proceeds from note payable to bank | 2,850,000 | 9,550,000 | 1,550,000 |
Principal payments on long-term debt and note payable to bank | (710,961) | (12,500,749) | (1,125,661) |
Payments for financing costs | 0 | (62,802) | (17,500) |
Repurchase of common stock | (1,573) | (1,557) | (18,122) |
Net cash provided by (used in) financing activities | 1,194,111 | (3,185,609) | 283,043 |
Net increase (decrease) in cash | 359,917 | (713,756) | (987,895) |
Cash at beginning of year | 177,413 | 891,169 | 1,879,064 |
Cash at end of year | 537,330 | 177,413 | 891,169 |
Supplemental disclosure of cash flow information: | |||
Cash payments for interest | 515,995 | 503,899 | 452,918 |
Income taxes paid, net of refunds | 30,483 | 27,808 | 15,613 |
Noncash investing and financing activities: | |||
Capital expenditures accrued in accounts payable at year end | $ 0 | $ 118,203 | $ 45,901 |
Note 1 - Description of Busines
Note 1 - Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ( 1 Description of Business and Summary of Significant Accounting Policies (a) Description of Business Optical Cable Corporation and its subsidiaries (collectively, the “Company” or “OCC ® Founded in 1983, The Company’s cabling and connectivity products are used for high bandwidth transmission of data, video and audio communications. The Company’s product offering includes products well-suited for use in various other short- to moderate-distance applications as well. The Company’s products are sold worldwide. Also see note 10. (b) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Optical Cable Corporation and its wholly owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (c) Cash and Cash Equivalents All of the Company’s bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC). As of October 31, 2019, October 31, 2018 not For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three October 31, 2019 2018, (d) Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not may no not (e) Inventories Inventories are stated at the lower of cost and net realizable value. The determination of cost includes raw materials, direct labor and manufacturing overhead. The cost of optical fibers, included in raw materials, is determined using specific identification for optical fibers. The cost of other raw materials and production supplies is generally determined using the first first may 3. (f) Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for using both straight-line and declining balance methods over the estimated useful lives of the assets. Estimated useful lives are thirty thirty-nine three fifteen 4. (g) Patents and Trademarks The Company records legal fees associated with patent and trademark applications as intangible assets. Such intangible assets are not not (h) Revenue Recognition The Company recognizes revenue at the time product is transferred to the customer (including distributors) at an amount that reflects the consideration expected to be received in exchange for the product. Customers generally do not 11. The Company recognizes royalty income (if any), net of related expenses, on an accrual basis and estimates royalty income earned based on historical experience. (i) Shipping and Handling Costs Shipping and handling costs include the costs incurred to physically move finished goods from the Company’s warehouse to the customers’ designated location. All shipping and handling activities related to contracts with customers as a cost to fulfill its promise to transfer control of the related product are classified as sales revenue. Shipping and handling costs of approximately $2.1 million, $2.2 million and $1.9 million are included in selling, general and administrative expenses for the fiscal years ended October 31, 2019, 2018 2017, (j) Research and Development Research and development costs are expensed as incurred. Research and development costs totaled approximately $1.2 million for the fiscal year ended October 31, 2019 October 31, 2018 2017 (k) Advertising Advertising costs are expensed as incurred. Advertising costs totaled approximately $196,000, $250,000 and $313,000 for the fiscal years ended October 31, 2019, 2018 2017, (l) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not 50% 12. (m) Long-Lived Assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not no (n) Stock Incentive Plans and Other Share-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those awards. Also see note 9. (o) Net Income (Loss) Per Share Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. In the case of basic net income per share, the calculation includes common shares outstanding issued as share-based compensation and still subject to vesting requirements. In the case of basic net loss per share, the calculation excludes common shares outstanding issued as share-based compensation and still subject to vesting requirements, as these shares are considered dilutive. Diluted net income (loss) per share also is calculated by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period, and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. The diluted net income (loss) per share calculation includes all common shares outstanding issued as share-based compensation and still subject to vesting requirements in the calculation of diluted net income, but not 14. (p) Commitments and Contingencies Liabilities for loss contingencies arising from product warranties and defects, claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. (q) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 2 - Allowance for Doubtful
Note 2 - Allowance for Doubtful Accounts for Trade Accounts Receivable | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Allowance for Doubtful Accounts for Trade Accounts Receivable Disclosure [Text Block] | ( 2 Allowance for Doubtful Accounts for Trade Accounts Receivable A summary of changes in the allowance for doubtful accounts for trade accounts receivable for the years ended October 31, 2019, 2018 2017 Years ended October 31, 2019 2018 2017 Balance at beginning of year $ 64,242 $ 87,446 $ 74,266 Bad debt expense (recovery) 60,381 (18,455 ) 21,569 Losses charged to allowance (25,061 ) (4,749 ) (8,389 ) Balance at end of year $ 99,562 $ 64,242 $ 87,446 |
Note 3 - Inventories
Note 3 - Inventories | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | ( 3 Inventories Inventories as of October 31, 2019 2018 October 31, 2019 2018 Finished goods $ 5,845,973 $ 5,454,629 Work in process 3,321,216 3,877,670 Raw materials 8,632,230 7,871,145 Production supplies 296,208 271,311 Total $ 18,095,627 $ 17,474,755 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | ( 4 Property and Equipment, Net Property and equipment, net as of October 31, 2019 2018 October 31, 2019 2018 Land and land improvements $ 3,148,834 $ 3,148,834 Building and improvements 8,245,585 8,244,384 Machinery and equipment 27,474,099 27,312,627 Furniture and fixtures 904,256 902,633 Construction in progress 254,471 225,759 Total property and equipment, at cost 40,027,245 39,834,237 Less accumulated amortization and depreciation (30,017,022 ) (28,629,598 ) Property and equipment, net $ 10,010,223 $ 11,204,639 |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | ( 5 Intangible Assets Aggregate amortization expense for amortizing intangible assets was $38,598, $34,768 and $25,704 for the years ended October 31, 2019, 2018 2017, $40,000 five October 31, 2019 October 31, 2018 |
Note 6 - Product Warranties
Note 6 - Product Warranties | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | ( 6 Product Warranties The Company generally warrants its products against certain manufacturing and other defects in material and workmanship. These product warranties are provided for specific periods of time and are applicable assuming the product has not October 31, 2019 2018, not October 31, 2019, 2018 2017 The following table summarizes the changes in the Company’s accrual for product warranties during the fiscal years ended October 31, 2019 2018: Years ended October 31, 2019 2018 Balance at beginning of year $ 180,000 $ 180,000 Liabilities accrued for warranties issued during the year 161,815 266,258 Warranty claims paid during the period (218,426 ) (219,190 ) Changes in liability for pre-existing warranties during the year (3,389 ) (47,068 ) Balance at end of year $ 120,000 $ 180,000 |
Note 7 - Long-term Debt and Not
Note 7 - Long-term Debt and Note Payable to Bank | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | ( 7 Long-term Debt and Note Payable to Bank The Company has credit facilities consisting of a real estate term loan, as amended and restated (the “Virginia Real Estate Loan”), a supplemental real estate term loan, as amended and restated (the “North Carolina Real Estate Loan”) and a Revolving Credit Note and related agreements (collectively, the “Revolver”). Both the Virginia Real Estate Loan and the North Carolina Real Estate Loan are with Pinnacle Bank (“Pinnacle”), have a fixed interest rate of 3.95% and are secured by a first first Long-term debt as of October 31, 2019 2018 October 31, 2019 2018 Virginia Real Estate Loan ($6.5 million original principal) payable in monthly installments of $31,812, including interest (at 3.95%), with final payment of $3,644,211 due May 1, 2024 $ 4,580,173 $ 4,774,252 North Carolina Real Estate Loan ($2.24 million original principal) payable in monthly installments of $10,963, including interest (at 3.95%), with final payment of $1,255,850 due May 1, 2024 1,328,450 1,645,332 Total long-term debt 5,908,623 6,419,584 Less current installments 738,955 260,954 Long-term debt, excluding current installments $ 5,169,668 $ 6,158,630 On April 30, 2019, April 26, 2016 April 26, 2016. June 30, 2020. On September 11, 2019, April 26, 2016 April 26, 2016. November 29, 2019 $250,000; September 10, 2019. July 31, 2019. On January 22, 2020, April 26, 2016 April 26, 2016. April 15, 2020 January 22, 2020, ( October 31, 2019, ( October 31, 2019, March 31, 2020 May 1, 2020 June 30, 2020. All other terms and conditions of the Credit Agreement remain unaltered and in effect. The Revolver is secured by a perfected first not The terms of OCC’s credit facilities with Pinnacle require the Company to comply, on an annual basis, with specific financial covenants including a fixed charge coverage ratio. The Company is required to maintain a fixed charge coverage ratio of not 1.0. October 31, 2019, 1.0 not Additionally, the terms of OCC’s credit facilities with Pinnacle require the Company to comply, on a quarterly basis, with two July 31, 2019 October 31, 2019, not 1.0. June 30, 2020, $5.7 October 31, 2019. October 31, 2019, 1.0 not one October 31, 2019, $5.7 The Company is required to have a total liabilities to tangible net worth ratio of not 1.0, October 31, 2019, 1.0 As of October 31, 2019 October 31, 2018, The aggregate maturities of long-term debt for each of the five October 31, 2019 2020, 2021, 2022, 2023 2024. |
Note 8 - Leases
Note 8 - Leases | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | ( 8 Leases The Company has an operating lease agreement for approximately 34,000 square feet of office, manufacturing and warehouse space in Plano, Texas (near Dallas). The lease term runs through November 30, 2019. November 30, 2024. The Company entered into an operating lease agreement in April 2015 twelve April 30, 2016. four 4 one April 30, 2020. As of October 31, 2019, not one October 31, 2019, 2020, 2021, 2022, 2023, 2024, Total rent expense associated with the operating leases for the fiscal years ended October 31, 2019, 2018 2017 |
Note 9 - Employee Benefits
Note 9 - Employee Benefits | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | ( 9 Employee Benefits Health Insurance Coverage The Company contracts for health insurance coverage for employees and their dependents through third October 31, 2019, 2018 2017, 401 The Company maintains a 401 October 31, 2019, 2018 2017, Stock Incentives for Key Employees and Non-Employee Directors Optical Cable Corporation uses stock incentives to increase the personal financial interest that key employees and non-employee Directors have in the future success of the Company, thereby aligning their interests with those of other shareholders and strengthening their desire to remain with the Company. In March 2017, 2017 “2017 2017 2017 2011 “2011 October 31, 2019, 2017 Share-based compensation expense for employees, a consultant and non-employee members of the Company’s Board of Directors recognized in the consolidated statements of operations for the years ended October 31, 2019, 2018 2017 The Company has granted, and anticipates granting, from time to time, restricted stock awards to employees, subject to approval by the Compensation Committee of the Board of Directors. The restricted stock awards granted under the 2017 2019. The Company recognizes expense each quarter on service-based shares of employees based on the actual number of shares vested during the quarter multiplied by the closing price of the Company’s shares of common stock on the date of grant. The Company recognizes expense each quarter on operational performance-based shares of employees using an estimate of the shares expected to vest multiplied by the closing price of the Company’s shares of common stock on the date of grant. A summary of the status of the Company’s nonvested shares granted to employees, a consultant and non-employee Directors under the 2017 October 31, 2019, October 31, 2019, Nonvested shares Shares Weighted- average grant date fair value Balance at October 31, 2018 1,027,702 $ 3.13 Granted 30,360 4.69 Vested (912,841 ) 3.18 Forfeited (4,745 ) 2.54 Balance at October 31, 2019 140,476 $ 3.04 As of October 31, 2019, During the fiscal year ended October 31, 2019, 2018 2017, 2017 2017 one October 31, 2019, 2018 2017, |
Note 10 - Business and Credit C
Note 10 - Business and Credit Concentrations, Major Customers and Geographic Information | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | ( 10 Business and Credit Concentrations, Major Customers and Geographic Information The Company provides credit, in the normal course of business, to various commercial enterprises, governmental entities and not October 31, 2019 2018 For the year ended October 31, 2019, No 10% October 31, 2019. October 31, 2019, No 5% For the year ended October 31, 2018, No 10% October 31, 2018. October 31, 2018, No 5% For the year ended October 31, 2017, No 10% October 31, 2017. October 31, 2017, No 5% For the years ended October 31, 2019, 2018 2017, The Company has a single reportable segment for purposes of segment reporting. |
Note 11 - Revenue Recognition
Note 11 - Revenue Recognition | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | ( 11 Revenue Recognition Effective November 1, 2018, 606, Revenue from Contracts with Customers 606” not November 1, 2018. November 1, 2018 606, not 606 not November 1, 2018. Under the new guidance, revenues consist of product sales that are recognized at a specific point in time under the core principle of recognizing revenue when control transfers to the customer. The Company considers customer purchase orders, governed by master sales agreements or the Company’s standard terms and conditions, to be the contract with the customer. For each contract, the promise to transfer the control of the products, each of which is individually distinct, is considered to be the identified performance obligation. The Company evaluates each customer’s credit risk when determining whether to accept a contract. In determining transaction prices, the Company evaluates whether fixed order prices are subject to adjustment to determine the net consideration to which the Company expects to be entitled. Contracts do not 30 90 not not not The Company recognizes revenue at the point in time when products are shipped or delivered from its manufacturing facility to its customer, in accordance with the agreed upon shipping terms. Since the Company typically invoices the customer at the same time that performance obligations are satisfied, no October 31, 2019 November 1, 2018. Sales to certain customers are made pursuant to agreements that provide price adjustments and limited return rights with respect to the Company’s products. The Company maintains a reserve for estimated future price adjustment claims, rebates and returns as a refund liability. The Company’s refund liability was $273,512 as of October 31, 2019 November 1, 2018. The Company offers standard product warranty coverage which provides assurance that its products will conform to contractually agreed-upon specifications for a limited period from the date of shipment. Separately-priced warranty coverage is not no The Company incurs sales commissions to acquire customer contracts that are directly attributable to the contracts. The commissions are expensed as selling expenses during the period that the related products are transferred to customers. Disaggregation of Revenue The following table presents net sales attributable to the United States and all other countries in total for the fiscal years ended October 31, 2019, 2018 2017: Years ended October 31, 2019 2018 2017 United States $ 58,207,966 $ 74,778,141 $ 51,558,474 Outside the United States 13,116,480 13,050,449 12,534,374 Total net sales $ 71,324,446 $ 87,828,590 $ 64,092,848 No 10% 2019, 2018 2017. |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 12 Income Taxes Income tax expense (benefit) for the years ended October 31, 2019, 2018 2017 Fiscal year ended October 31, 2019 Current Deferred Total U.S. Federal $ 726 $ (726 ) $ — State (5,805 ) — (5,805 ) Totals $ (5,079 ) $ (726 ) $ (5,805 ) Fiscal year ended October 31, 2018 Current Deferred Total U.S. Federal $ 14,163 $ (49,281 ) $ (35,118 ) State 18,467 — 18,467 Totals $ 32,630 $ (49,281 ) $ (16,651 ) Fiscal year ended October 31, 2017 Current Deferred Total U.S. Federal $ — $ — $ — State (5,438 ) — (5,438 ) Totals $ (5,438 ) $ — $ (5,438 ) Reported income tax expense for the years ended October 31, 2019, 2018 2017 2019, 2018 2017 Years ended October 31, 2019 2018 2017 “Expected” income taxes (benefit) $ (1,191,776 ) $ 243,772 $ (593,031 ) Increase (reduction) in income tax expense (benefit) resulting from: Remeasurement of deferred taxes related to the Tax Act — 1,272,517 — State income taxes, net of federal benefit (12,875 ) 2,641 (29,422 ) Meals and Entertainment 17,999 24,661 32,119 Provision to return reconciliation adjustment 6,400 (57,118 ) 18,064 Excess tax benefits related to share-based compensation (90,603 ) — — Non-deductible officers' compensation 31,456 — — Other differences, net 3,434 964 4,503 Change in valulation allowance 1,230,160 (1,504,088 ) 562,329 Reported income tax benefit $ (5,805 ) $ (16,651 ) $ (5,438 ) The Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, 35% 21%. 21% January 1, 2018. 2018 November 1, 2017, 2018 23.17%. 2019, 21%. The Tax Act also repealed the corporate AMT for tax years beginning after December 31, 2017, December 31, 2017. 2019 2022. not October 31, 2019. The Company continues to assess the impacts of the Tax Act on future fiscal years as well as analyze applicable information and data, and interpret any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and others. The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities as of October 31, 2019 2018 October 31, 2019 2018 Deferred tax assets: Accounts receivable, due to allowances for doubtful accounts and sales returns $ 54,370 $ 36,779 Inventories, due to allowance for damaged and slow-moving inventories and additional costs inventoried for tax purposes pursuant to the Tax Reform Act of 1986 769,871 780,446 Liabilities recorded for accrued expenses, deductible for tax purposes when paid 111,677 472,641 Share-based compensation expense 20,410 474,163 Net operating loss carryforwards 2,374,774 528,939 AMT credit carryforwards 50,007 49,281 Other 175,580 59,219 Total gross deferred tax assets 3,556,689 2,401,468 Valuation allowance (3,348,645 ) (2,118,487 ) Net deferred tax assets 208,044 282,981 Deferred tax liabilities: Plant and equipment, due to differences in depreciation and capital gain recognition (155,461 ) (231,672 ) Other receivables, due to accrual for financial reporting purposes (2,576 ) (2,028 ) Total gross deferred tax liabilities (158,037 ) (233,700 ) Net deferred tax asset $ 50,007 $ 49,281 As a result of the acquisition of AOS, the Company recorded certain deferred tax assets totaling $1,517,605 (after purchase accounting adjustments), related to gross net operating loss (“NOL”) carryforwards of $4,455,525, estimated to be available after considering Internal Revenue Code Section 382 October 31, 2019, may October 31, 2028. 2015 2019, not 2031. For the fiscal years ended October 31, 2019 2018, not” not 740, Income Taxes October 31, 2019 2018. The Company estimates a liability for uncertain tax positions taken or expected to be taken in a tax return. The liability for uncertain tax positions is included in other noncurrent liabilities on the accompanying consolidated balance sheets. A reconciliation of the unrecognized tax benefits for fiscal years 2019 2018 October 31, 2019 2018 Unrecognized tax benefits balance at beginning of year $ 60,147 $ 65,549 Gross decreases for tax positions of prior years (11,206 ) (7,708 ) Gross increases for current year tax positions — 2,306 Unrecognized tax benefits balance at end of year $ 48,941 $ 60,147 During fiscal year 2019, 2018, October 31, 2019 2018, October 31, 2019 2018, not 12 The Company files income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. The statute of limitations remains open for U.S. and certain state income tax examinations for years ended October 31, 2016 October 31, 2018. |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | ( 13 Fair Value Measurements The carrying amounts reported in the consolidated balance sheets for cash, trade accounts receivable, income taxes refundable-current, other receivables, and accounts payable and accrued expenses, including accrued compensation and payroll taxes approximate fair value because of the short maturity of these instruments. The carrying values of the Company’s note payable to bank and long-term debt approximate fair value based on similar long-term debt issues available to the Company as of October 31, 2019 2018. The Company uses a fair value hierarchy that prioritizes the inputs for valuation methods used to measure fair value. The three ● Level 1 ● Level 2 1 ● Level 3 The Company utilizes the best available information in measuring fair value. |
Note 14 - Net Income (Loss) Per
Note 14 - Net Income (Loss) Per Share | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 14 Net Income (Loss) Per Share The following is a reconciliation of the numerators and denominators of the net income (loss) per share computations for the periods presented: Years ended October 31, 2019 2018 2017 Net income (loss) (numerator) $ (5,669,321 ) $ 1,068,753 $ (1,738,771 ) Shares (denominator) 7,387,141 7,593,435 6,546,862 Basic and diluted net income (loss) per share $ (0.77 ) $ 0.14 $ (0.27 ) Nonvested shares which have been issued and are outstanding as of October 31, 2019 October 31, 2017 not October 31, 2019 October 31, 2017 ( |
Note 15 - Shareholders' Equity
Note 15 - Shareholders' Equity | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | ( 15 Shareholders’ Equity Share Repurchases The Company, through plans approved by its Board of Directors and other programs, has repurchased and retired certain of its outstanding common stock. The following is a summary of the Company’s repurchase of shares and the costs associated with the repurchases, including brokerage and legal fees, for the periods presented. Fiscal years ended October 31, Shares repurchased Cost 2019 351 $ 1,573 2018 272 1,557 2017 5,701 18,122 After the Company’s purchase and retirement of the shares of its common stock as set forth in the table above, the Company had 7,458,981 shares of its common stock issued and outstanding at October 31, 2019. The Company has a plan (the “Repurchase Plan”), approved by its Board of Directors on July 14, 2015, no October 31, 2019, no may may not The Company has repurchased outstanding common stock outside of the Repurchase Plan through an odd lot repurchase offer. During fiscal year 2019, Stockholder Protection Rights Agreement On October 28, 2011, no November 2, 2011, Upon the occurrence of certain events, each Right will entitle its holder to purchase from the Company one one November 2, 2021, no The Company has reserved 100,000 shares of its authorized preferred stock for issuance upon exercise of the Rights. |
Note 16 - Contingencies
Note 16 - Contingencies | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 16 Contingencies From time to time, the Company is involved in various claims, legal actions and regulatory reviews arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not |
Note 17 - New Accounting Standa
Note 17 - New Accounting Standards Not Yet Adopted | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ( 17 New Accounting Standards Not In February 2016, 2016 02, Leases 2017 13, 2018 10, 2018 11, 2018 20 2019 01 842” 842 842 842 December 15, 2018, one two not In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 2018 07” 2018 07 718 2018 07 718 not 1 2 Revenue from Contracts with Customers 606 2018 07 December 15, 2018, 2018 07 not In June 2018, 2018 08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made 2018 08” 2018 08 not 2018 08 not 2018 08 December 15, 2018, 2018 08 not In July 2019, 2019 07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33 10532, 33 10231 33 10442, 2019 07” 2019 07 not 2019 07, There are no not |
Note 18 - Quarterly Results of
Note 18 - Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | ( 18 Quarterly Results of Operations (Unaudited) The following is a summary of the unaudited quarterly results of operations for the years ended October 31, 2019 2018: Quarter ended Fiscal year ended October 31, 2019 January 31 April 30 July 31 October 31 Net sales $ 16,750,668 $ 18,957,175 $ 17,367,068 $ 18,249,535 Gross profit 3,562,559 5,309,134 4,491,454 4,941,600 Selling, general & administrative expenses 6,773,645 5,776,814 5,418,438 5,465,463 Loss before income taxes (3,337,441 ) (612,185 ) (1,072,435 ) (653,065 ) Net loss (3,310,020 ) (617,425 ) (1,085,294 ) (656,582 ) Basic and diluted net loss per share $ (0.44 ) $ (0.08 ) $ (0.15 ) $ (0.09 ) Quarter ended Fiscal year ended October 31, 2018 January 31 April 30 July 31 October 31 Net sales $ 17,551,040 $ 26,887,689 $ 23,116,584 $ 20,273,277 Gross profit 5,228,820 8,956,275 7,026,542 6,661,563 Selling, general & administrative expenses 5,557,693 7,400,779 6,370,244 6,802,240 Income (loss) before income taxes (449,620 ) 1,406,570 455,813 (360,661 ) Net income (loss) (410,135 ) 1,390,865 438,353 (350,330 ) Basic and diluted net income (loss) per share $ (0.06 ) $ 0.18 $ 0.06 $ (0.05 ) |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | (b) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Optical Cable Corporation and its wholly owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (c) Cash and Cash Equivalents All of the Company’s bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC). As of October 31, 2019, October 31, 2018 not For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three October 31, 2019 2018, |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | (d) Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not may no not |
Inventory, Policy [Policy Text Block] | (e) Inventories Inventories are stated at the lower of cost and net realizable value. The determination of cost includes raw materials, direct labor and manufacturing overhead. The cost of optical fibers, included in raw materials, is determined using specific identification for optical fibers. The cost of other raw materials and production supplies is generally determined using the first first may 3. |
Property, Plant and Equipment, Policy [Policy Text Block] | (f) Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for using both straight-line and declining balance methods over the estimated useful lives of the assets. Estimated useful lives are thirty thirty-nine three fifteen 4. |
Patents and Trademarks [Policy Text Block] | (g) Patents and Trademarks The Company records legal fees associated with patent and trademark applications as intangible assets. Such intangible assets are not not |
Revenue [Policy Text Block] | (h) Revenue Recognition The Company recognizes revenue at the time product is transferred to the customer (including distributors) at an amount that reflects the consideration expected to be received in exchange for the product. Customers generally do not 11. The Company recognizes royalty income (if any), net of related expenses, on an accrual basis and estimates royalty income earned based on historical experience. |
Shipping and Handling Costs [Policy Text Block] | (i) Shipping and Handling Costs Shipping and handling costs include the costs incurred to physically move finished goods from the Company’s warehouse to the customers’ designated location. All shipping and handling activities related to contracts with customers as a cost to fulfill its promise to transfer control of the related product are classified as sales revenue. Shipping and handling costs of approximately $2.1 million, $2.2 million and $1.9 million are included in selling, general and administrative expenses for the fiscal years ended October 31, 2019, 2018 2017, |
Research and Development Expense, Policy [Policy Text Block] | (j) Research and Development Research and development costs are expensed as incurred. Research and development costs totaled approximately $1.2 million for the fiscal year ended October 31, 2019 October 31, 2018 2017 |
Advertising Cost [Policy Text Block] | (k) Advertising Advertising costs are expensed as incurred. Advertising costs totaled approximately $196,000, $250,000 and $313,000 for the fiscal years ended October 31, 2019, 2018 2017, |
Income Tax, Policy [Policy Text Block] | (l) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not 50% 12. |
Long-Lived and Intangible Assets [Policy Text Block] | (m) Long-Lived Assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not no |
Share-based Payment Arrangement [Policy Text Block] | (n) Stock Incentive Plans and Other Share-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those awards. Also see note 9. |
Earnings Per Share, Policy [Policy Text Block] | (o) Net Income (Loss) Per Share Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. In the case of basic net income per share, the calculation includes common shares outstanding issued as share-based compensation and still subject to vesting requirements. In the case of basic net loss per share, the calculation excludes common shares outstanding issued as share-based compensation and still subject to vesting requirements, as these shares are considered dilutive. Diluted net income (loss) per share also is calculated by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period, and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. The diluted net income (loss) per share calculation includes all common shares outstanding issued as share-based compensation and still subject to vesting requirements in the calculation of diluted net income, but not 14. |
Commitments and Contingencies, Policy [Policy Text Block] | (p) Commitments and Contingencies Liabilities for loss contingencies arising from product warranties and defects, claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
Use of Estimates, Policy [Policy Text Block] | (q) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 2 - Allowance for Doubtf_2
Note 2 - Allowance for Doubtful Accounts for Trade Accounts Receivable (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable [Table Text Block] | Years ended October 31, 2019 2018 2017 Balance at beginning of year $ 64,242 $ 87,446 $ 74,266 Bad debt expense (recovery) 60,381 (18,455 ) 21,569 Losses charged to allowance (25,061 ) (4,749 ) (8,389 ) Balance at end of year $ 99,562 $ 64,242 $ 87,446 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | October 31, 2019 2018 Finished goods $ 5,845,973 $ 5,454,629 Work in process 3,321,216 3,877,670 Raw materials 8,632,230 7,871,145 Production supplies 296,208 271,311 Total $ 18,095,627 $ 17,474,755 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment, Net (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | October 31, 2019 2018 Land and land improvements $ 3,148,834 $ 3,148,834 Building and improvements 8,245,585 8,244,384 Machinery and equipment 27,474,099 27,312,627 Furniture and fixtures 904,256 902,633 Construction in progress 254,471 225,759 Total property and equipment, at cost 40,027,245 39,834,237 Less accumulated amortization and depreciation (30,017,022 ) (28,629,598 ) Property and equipment, net $ 10,010,223 $ 11,204,639 |
Note 6 - Product Warranties (Ta
Note 6 - Product Warranties (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Years ended October 31, 2019 2018 Balance at beginning of year $ 180,000 $ 180,000 Liabilities accrued for warranties issued during the year 161,815 266,258 Warranty claims paid during the period (218,426 ) (219,190 ) Changes in liability for pre-existing warranties during the year (3,389 ) (47,068 ) Balance at end of year $ 120,000 $ 180,000 |
Note 7 - Long-term Debt and N_2
Note 7 - Long-term Debt and Note Payable to Bank (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | October 31, 2019 2018 Virginia Real Estate Loan ($6.5 million original principal) payable in monthly installments of $31,812, including interest (at 3.95%), with final payment of $3,644,211 due May 1, 2024 $ 4,580,173 $ 4,774,252 North Carolina Real Estate Loan ($2.24 million original principal) payable in monthly installments of $10,963, including interest (at 3.95%), with final payment of $1,255,850 due May 1, 2024 1,328,450 1,645,332 Total long-term debt 5,908,623 6,419,584 Less current installments 738,955 260,954 Long-term debt, excluding current installments $ 5,169,668 $ 6,158,630 |
Note 9 - Employee Benefits (Tab
Note 9 - Employee Benefits (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Nonvested shares Shares Weighted- average grant date fair value Balance at October 31, 2018 1,027,702 $ 3.13 Granted 30,360 4.69 Vested (912,841 ) 3.18 Forfeited (4,745 ) 2.54 Balance at October 31, 2019 140,476 $ 3.04 |
Note 11 - Revenue Recognition (
Note 11 - Revenue Recognition (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Revenue from External Customers by Geographic Areas [Table Text Block] | Years ended October 31, 2019 2018 2017 United States $ 58,207,966 $ 74,778,141 $ 51,558,474 Outside the United States 13,116,480 13,050,449 12,534,374 Total net sales $ 71,324,446 $ 87,828,590 $ 64,092,848 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal year ended October 31, 2019 Current Deferred Total U.S. Federal $ 726 $ (726 ) $ — State (5,805 ) — (5,805 ) Totals $ (5,079 ) $ (726 ) $ (5,805 ) Fiscal year ended October 31, 2018 Current Deferred Total U.S. Federal $ 14,163 $ (49,281 ) $ (35,118 ) State 18,467 — 18,467 Totals $ 32,630 $ (49,281 ) $ (16,651 ) Fiscal year ended October 31, 2017 Current Deferred Total U.S. Federal $ — $ — $ — State (5,438 ) — (5,438 ) Totals $ (5,438 ) $ — $ (5,438 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended October 31, 2019 2018 2017 “Expected” income taxes (benefit) $ (1,191,776 ) $ 243,772 $ (593,031 ) Increase (reduction) in income tax expense (benefit) resulting from: Remeasurement of deferred taxes related to the Tax Act — 1,272,517 — State income taxes, net of federal benefit (12,875 ) 2,641 (29,422 ) Meals and Entertainment 17,999 24,661 32,119 Provision to return reconciliation adjustment 6,400 (57,118 ) 18,064 Excess tax benefits related to share-based compensation (90,603 ) — — Non-deductible officers' compensation 31,456 — — Other differences, net 3,434 964 4,503 Change in valulation allowance 1,230,160 (1,504,088 ) 562,329 Reported income tax benefit $ (5,805 ) $ (16,651 ) $ (5,438 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | October 31, 2019 2018 Deferred tax assets: Accounts receivable, due to allowances for doubtful accounts and sales returns $ 54,370 $ 36,779 Inventories, due to allowance for damaged and slow-moving inventories and additional costs inventoried for tax purposes pursuant to the Tax Reform Act of 1986 769,871 780,446 Liabilities recorded for accrued expenses, deductible for tax purposes when paid 111,677 472,641 Share-based compensation expense 20,410 474,163 Net operating loss carryforwards 2,374,774 528,939 AMT credit carryforwards 50,007 49,281 Other 175,580 59,219 Total gross deferred tax assets 3,556,689 2,401,468 Valuation allowance (3,348,645 ) (2,118,487 ) Net deferred tax assets 208,044 282,981 Deferred tax liabilities: Plant and equipment, due to differences in depreciation and capital gain recognition (155,461 ) (231,672 ) Other receivables, due to accrual for financial reporting purposes (2,576 ) (2,028 ) Total gross deferred tax liabilities (158,037 ) (233,700 ) Net deferred tax asset $ 50,007 $ 49,281 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | October 31, 2019 2018 Unrecognized tax benefits balance at beginning of year $ 60,147 $ 65,549 Gross decreases for tax positions of prior years (11,206 ) (7,708 ) Gross increases for current year tax positions — 2,306 Unrecognized tax benefits balance at end of year $ 48,941 $ 60,147 |
Note 14 - Net Income (Loss) P_2
Note 14 - Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years ended October 31, 2019 2018 2017 Net income (loss) (numerator) $ (5,669,321 ) $ 1,068,753 $ (1,738,771 ) Shares (denominator) 7,387,141 7,593,435 6,546,862 Basic and diluted net income (loss) per share $ (0.77 ) $ 0.14 $ (0.27 ) |
Note 15 - Shareholders' Equity
Note 15 - Shareholders' Equity (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Share Repurchases [Table Text Block] |
<tbody>
<tr style="vertical-align: bottom;">
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 62%; border-bottom: thin solid rgb(0, 0, 0);"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><b>Fiscal years ended</b></p> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><b>October 31,</b></p> </td>
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Shares</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>repurchased</b></b></p> </td>
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Cost</b></b></p> </td>
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">2019</p> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">351</td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">1,573</td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">2018</p> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">272</td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">1,557</td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">2017</p> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">5,701</td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">18,122</td>
<td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td>
</tr>
</tbody>
</table>
" id="sjs-B4" xml:space="preserve"> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;"> <tbody> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 62%; border-bottom: thin solid rgb(0, 0, 0);"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><b>Fiscal years ended</b></p> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><b>October 31,</b></p> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Shares</b></b></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>repurchased</b></b></p> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Cost</b></b></p> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">2019</p> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">351</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">1,573</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">2018</p> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">272</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">1,557</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">2017</p> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">5,701</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">18,122</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </tbody> </table> |
Note 18 - Quarterly Results o_2
Note 18 - Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Quarter ended Fiscal year ended October 31, 2019 January 31 April 30 July 31 October 31 Net sales $ 16,750,668 $ 18,957,175 $ 17,367,068 $ 18,249,535 Gross profit 3,562,559 5,309,134 4,491,454 4,941,600 Selling, general & administrative expenses 6,773,645 5,776,814 5,418,438 5,465,463 Loss before income taxes (3,337,441 ) (612,185 ) (1,072,435 ) (653,065 ) Net loss (3,310,020 ) (617,425 ) (1,085,294 ) (656,582 ) Basic and diluted net loss per share $ (0.44 ) $ (0.08 ) $ (0.15 ) $ (0.09 ) Quarter ended Fiscal year ended October 31, 2018 January 31 April 30 July 31 October 31 Net sales $ 17,551,040 $ 26,887,689 $ 23,116,584 $ 20,273,277 Gross profit 5,228,820 8,956,275 7,026,542 6,661,563 Selling, general & administrative expenses 5,557,693 7,400,779 6,370,244 6,802,240 Income (loss) before income taxes (449,620 ) 1,406,570 455,813 (360,661 ) Net income (loss) (410,135 ) 1,390,865 438,353 (350,330 ) Basic and diluted net income (loss) per share $ (0.06 ) $ 0.18 $ 0.06 $ (0.05 ) |
Note 1 - Description of Busin_2
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Cash, Uninsured Amount | $ 127,000 | $ 0 | |
Cash Equivalents, at Carrying Value, Total | 0 | 0 | |
Selling, General and Administrative Expenses [Member] | |||
Shipping and Handling Costs | 2,100,000 | 2,200,000 | $ 1,900,000 |
Research and Development Expense, Total | 1,200,000 | 1,300,000 | 1,300,000 |
Advertising Expense | $ 196,000 | $ 250,000 | $ 313,000 |
Building [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Building [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 39 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 15 years |
Note 2 - Allowance for Doubtf_3
Note 2 - Allowance for Doubtful Accounts for Trade Accounts Receivable - Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Balance | $ 64,242 | $ 87,446 | $ 74,266 |
Bad debt expense (recovery) | 60,381 | (18,455) | 21,569 |
Losses charged to allowance | (25,061) | (4,749) | (8,389) |
Balance | $ 99,562 | $ 64,242 | $ 87,446 |
Note 3 - Inventories - Componen
Note 3 - Inventories - Components of Inventories (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Finished goods | $ 5,845,973 | $ 5,454,629 |
Work in process | 3,321,216 | 3,877,670 |
Raw materials | 8,632,230 | 7,871,145 |
Production supplies | 296,208 | 271,311 |
Total | $ 18,095,627 | $ 17,474,755 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Property and equipment, gross | $ 40,027,245 | $ 39,834,237 |
Less accumulated amortization and depreciation | (30,017,022) | (28,629,598) |
Property and equipment, net | 10,010,223 | 11,204,639 |
Land [Member] | ||
Property and equipment, gross | 3,148,834 | 3,148,834 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 8,245,585 | 8,244,384 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 27,474,099 | 27,312,627 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 904,256 | 902,633 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 254,471 | $ 225,759 |
Note 5 - Intangible Assets (Det
Note 5 - Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Amortization of Intangible Assets, Total | $ 38,598 | $ 34,768 | $ 25,704 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 40,000 | ||
Finite-Lived Intangible Assets, Gross, Total | 645,701 | 596,457 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 135,393 | $ 96,795 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 40,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 40,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 40,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 40,000 |
Note 6 - Product Warranties (De
Note 6 - Product Warranties (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Standard and Extended Product Warranty Accrual, Ending Balance | $ 120,000 | $ 180,000 | $ 180,000 |
Product Warranty Expense | 158,426 | 219,190 | $ 281,523 |
Accounts Payable and Accrued Liabilities [Member] | |||
Standard and Extended Product Warranty Accrual, Ending Balance | $ 120,000 | $ 180,000 |
Note 6 - Product Warranties - C
Note 6 - Product Warranties - Changes in Accrual for Product Warranties (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Balance | $ 180,000 | $ 180,000 |
Liabilities accrued for warranties issued during the year | 161,815 | 266,258 |
Warranty claims paid during the period | (218,426) | (219,190) |
Changes in liability for pre-existing warranties during the year | (3,389) | (47,068) |
Balance | $ 120,000 | $ 180,000 |
Note 7 - Long-term Debt and N_3
Note 7 - Long-term Debt and Note Payable to Bank (Details Textual) | Jan. 22, 2020USD ($) | Sep. 11, 2019USD ($) | Jan. 30, 2020 | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Apr. 26, 2016USD ($) |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 6,388,954 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 303,783 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 316,175 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 329,072 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 4,220,639 | |||||
Pinnacle Financial Partners [Member] | Real Estate Term Loans [Member] | Subsequent Event [Member] | ||||||
Debt Instrument, Increase (Decrease), Net, Total | $ (200,000) | |||||
Pinnacle Financial Partners [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,500,000 | $ 7,000,000 | ||||
Line of Credit Facility, Increase (Decrease), Net, Total | $ (500,000) | |||||
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 1.25 | |||||
Debt Instrument, Fixed Charge Coverage Ratio | (3) | |||||
Debt Instrument, Covenant, Current Ratio | 3 | |||||
Debt Instrument, Current Ratio | 2.2 | |||||
Debt Instrument, Covenant, Total Liabilities To Tangible Net Worth Ratio | 0.95 | |||||
Debt Instrument, Total Liabilities To Tangible Net Worth Ratio | 0.92 | |||||
Long-term Line of Credit, Total | $ 5,700,000 | $ 3,000,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 850,000 | $ 4,000,000 | ||||
Pinnacle Financial Partners [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||
Pinnacle Financial Partners [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | Subsequent Event [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Virginia Real Estate Loan and North Carolina Real Estate Loan [Member] | Pinnacle Financial Partners [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% |
Note 7 - Long-term Debt and N_4
Note 7 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Long-term Loan | $ 5,908,623 | $ 6,419,584 |
Less current installments | 738,955 | 260,954 |
Long-term debt, excluding current installments | 5,169,668 | 6,158,630 |
Virginia Real Estate Loan [Member] | ||
Long-term Loan | 4,580,173 | 4,774,252 |
North Carolina Real Estate Loan [Member] | ||
Long-term Loan | $ 1,328,450 | $ 1,645,332 |
Note 7 - Long-term Debt and N_5
Note 7 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) (Parentheticals) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Virginia Real Estate Loan [Member] | ||
Original principal | $ 6,500,000 | $ 6,500,000 |
Monthly installments | $ 31,812 | $ 31,812 |
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% |
Final payment | $ 3,644,211 | $ 3,644,211 |
Maturity date | May 1, 2024 | May 1, 2024 |
North Carolina Real Estate Loan [Member] | ||
Original principal | $ 2,240,000 | $ 2,240,000 |
Monthly installments | $ 10,963 | $ 10,963 |
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% |
Final payment | $ 1,255,850 | $ 1,255,850 |
Maturity date | May 1, 2024 | May 1, 2024 |
Note 8 - Leases (Details Textua
Note 8 - Leases (Details Textual) | 12 Months Ended | ||||
Oct. 31, 2019USD ($)ft² | Oct. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jan. 24, 2020USD ($) | Apr. 30, 2015ft² | |
Operating Leases, Rent Expense, Net, Total | $ 403,097 | $ 422,102 | $ 403,178 | ||
Subsequent Event [Member] | |||||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 214,487 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 239,884 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 246,481 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 253,259 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 260,224 | ||||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | $ 21,734 | ||||
Operating Lease for Office, Manufacturing and Warehouse Space in Plano, Texas [Member] | |||||
Area of Real Estate Property | ft² | 34,000 | ||||
Operating Lease for Warehouse Space in Roanoke, Virginia [Member] | |||||
Area of Real Estate Property | ft² | 36,000 | ||||
Lessee, Operating Lease, Term of Contract | 12 months | ||||
Lease Term, Extension, Term | 1 year | ||||
Lease Term, Extension, Remaining Number | 1 |
Note 9 - Employee Benefits (Det
Note 9 - Employee Benefits (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Health Insurance Coverage Expense | $ 3,549,189 | $ 3,479,447 | $ 3,360,633 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | 68,467 | 68,502 | 52,524 | |
Share-based Payment Arrangement, Expense | $ 980,549 | $ 2,224,620 | 787,100 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||
Services and Performance Based Shares [Member] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 2 months 12 days | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 340,000 | |||
The 2017 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 500,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 441,000 | |||
The 2017 Stock Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 30,360 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | $ 124,838 | $ 96,407 | $ 53,084 | |
The 2017 Stock Incentive Plan [Member] | Restricted Stock [Member] | Non-employee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 30,360 | 35,810 | 31,380 |
Note 9 - Employee Benefits - Re
Note 9 - Employee Benefits - Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Oct. 31, 2019$ / sharesshares | |
Granted (in shares) | 0 |
The 2017 Stock Incentive Plan [Member] | |
Balance (in shares) | 1,027,702 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 3.13 |
Granted (in shares) | 30,360 |
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 4.69 |
Vested (in shares) | (912,841) |
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 3.18 |
Forfeited (in shares) | (4,745) |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 2.54 |
Balance (in shares) | 140,476 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 3.04 |
Note 10 - Business and Credit_2
Note 10 - Business and Credit Concentrations, Major Customers and Geographic Information (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Customer One [Member] | |||
Revenues, Total | $ 10.6 | $ 28.6 | $ 10.5 |
Customer Two [Member] | |||
Revenues, Total | $ 8.7 | $ 10.1 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Concentration Risk, Number of Customers | 2 | 2 | 1 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member] | |||
Concentration Risk, Percentage | 14.90% | 32.50% | 16.40% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Two [Member] | |||
Concentration Risk, Percentage | 12.20% | 11.50% | |
Customer Concentration Risk [Member] | Stockholders' Equity, Total [Member] | |||
Concentration Risk, Number of Customers | 2 | 2 | |
Customer Concentration Risk [Member] | Stockholders' Equity, Total [Member] | Customer One [Member] | |||
Concentration Risk, Percentage | 9.60% | 14.50% | 8.90% |
Customer Concentration Risk [Member] | Stockholders' Equity, Total [Member] | Customer Two [Member] | |||
Concentration Risk, Percentage | 5.70% | 11.70% | |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | |||
Concentration Risk, Percentage | 82.00% | 85.00% | 80.00% |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Non-US [Member] | |||
Concentration Risk, Percentage | 18.00% | 15.00% | 20.00% |
Note 11 - Revenue Recognition_2
Note 11 - Revenue Recognition (Details Textual) - USD ($) | Nov. 01, 2018 | Oct. 31, 2019 |
Contract with Customer, Liability, Total | $ 123,979 | $ 19,850 |
Contract with Customer, Refund Liability, Total | 298,577 | $ 273,512 |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect on Retained Earnings, Net of Tax, Total | $ 61,763 |
Note 11 - Revenue Recognition -
Note 11 - Revenue Recognition - Revenue Attributed to United States and All Other Countries (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Net sales | $ 18,249,535 | $ 17,367,068 | $ 18,957,175 | $ 16,750,668 | $ 20,273,277 | $ 23,116,584 | $ 26,887,689 | $ 17,551,040 | $ 71,324,446 | $ 87,828,590 | $ 64,092,848 |
UNITED STATES | |||||||||||
Net sales | 58,207,966 | 74,778,141 | 51,558,474 | ||||||||
Non-US [Member] | |||||||||||
Net sales | $ 13,116,480 | $ 13,050,449 | $ 12,534,374 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2009 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 23.17% | 34.00% | |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 50,007 | $ 49,281 | ||
Income Taxes Receivable, Current | 25,004 | 0 | ||
Income Taxes Receivable, Noncurrent | 25,003 | 49,281 | ||
Deferred Tax Assets, Gross, Total | 3,556,689 | 2,401,468 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Total | 2,374,774 | 528,939 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 9,186,886 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 2,002,211 | |||
Deferred Tax Assets, Valuation Allowance, Total | 3,348,645 | 2,118,487 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 15,847 | 5,635 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 2,225 | 1,927 | ||
Income Tax Examination, Penalties and Interest Accrued, Total | 22,397 | 40,469 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 36,530 | $ 41,520 | ||
AOS Acquisition [Member] | ||||
Deferred Tax Assets, Gross, Total | $ 1,517,605 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Total | $ 1,232,000 | $ 4,455,525 |
Note 12 - Income Taxes - Income
Note 12 - Income Taxes - Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
U.S. Federal, Current Income Tax Expense (Benefit) | $ 726 | $ 14,163 | $ 0 |
U.S. Federal, Deferred Income Tax Expense (Benefit) | (726) | (49,281) | 0 |
U.S. Federal, Net Income Tax Expense (Benefit) | 0 | (35,118) | 0 |
State, Current Income Tax Expense (Benefit) | (5,805) | 18,467 | (5,438) |
State, Deferred Income Tax Expense (Benefit) | 0 | 0 | 0 |
State, Income Tax Expense (Benefit) | (5,805) | 18,467 | (5,438) |
Total Current Income Tax Expense (Benefit) | (5,079) | 32,630 | (5,438) |
Total Deferred Income Tax Expense (Benefit) | (726) | (49,281) | 0 |
Total Net Income Tax Expense (Benefit) | $ (5,805) | $ (16,651) | $ (5,438) |
Note 12 - Income Taxes - Effect
Note 12 - Income Taxes - Effective Income Tax (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
“Expected” income taxes (benefit) | $ (1,191,776) | $ 243,772 | $ (593,031) |
Remeasurement of deferred taxes related to the Tax Act | 0 | 1,272,517 | 0 |
State income taxes, net of federal benefit | (12,875) | 2,641 | (29,422) |
Meals and Entertainment | 17,999 | 24,661 | 32,119 |
Provision to return reconciliation adjustment | 6,400 | (57,118) | 18,064 |
Excess tax benefits related to share-based compensation | (90,603) | 0 | 0 |
Non-deductible officers' compensation | 31,456 | 0 | 0 |
Other differences, net | 3,434 | 964 | 4,503 |
Change in valulation allowance | 1,230,160 | (1,504,088) | 562,329 |
Total Net Income Tax Expense (Benefit) | $ (5,805) | $ (16,651) | $ (5,438) |
Note 12 - Income Taxes - Deferr
Note 12 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Accounts receivable, due to allowances for doubtful accounts and sales returns | $ 54,370 | $ 36,779 |
Inventories, due to allowance for damaged and slow-moving inventories and additional costs inventoried for tax purposes pursuant to the Tax Reform Act of 1986 | 769,871 | 780,446 |
Liabilities recorded for accrued expenses, deductible for tax purposes when paid | 111,677 | 472,641 |
Share-based compensation expense | 20,410 | 474,163 |
Net operating loss carryforwards | 2,374,774 | 528,939 |
AMT credit carryforwards | 50,007 | 49,281 |
Other | 175,580 | 59,219 |
Total gross deferred tax assets | 3,556,689 | 2,401,468 |
Valuation allowance | (3,348,645) | (2,118,487) |
Net deferred tax assets | 208,044 | 282,981 |
Plant and equipment, due to differences in depreciation and capital gain recognition | (155,461) | (231,672) |
Other receivables, due to accrual for financial reporting purposes | (2,576) | (2,028) |
Total gross deferred tax liabilities | (158,037) | (233,700) |
Net deferred tax asset | $ 50,007 | $ 49,281 |
Note 12 - Income Taxes - Unreco
Note 12 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Unrecognized tax benefits balance at beginning of year | $ 60,147 | $ 65,549 |
Gross decreases for tax positions of prior years | (11,206) | (7,708) |
Gross increases for current year tax positions | 0 | 2,306 |
Unrecognized tax benefits balance at end of year | $ 48,941 | $ 60,147 |
Note 14 - Net Income (Loss) P_3
Note 14 - Net Income (Loss) Per Share (Details Textual) - shares | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 127,750 | 743,865 |
Note14 - Net Income (Loss) Per
Note14 - Net Income (Loss) Per Share - Components of Reconciliation of Numerators and Denominators Net Loss Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Net income (loss) (numerator) | $ (5,669,321) | $ 1,068,753 | $ (1,738,771) | ||||||||
Shares (denominator) (in shares) | 7,387,141 | 7,593,435 | 6,546,862 | ||||||||
Basic and diluted net income (loss) per share (in dollars per share) | $ (0.09) | $ (0.15) | $ (0.08) | $ (0.44) | $ (0.05) | $ 0.06 | $ 0.18 | $ (0.06) | $ (0.77) | $ 0.14 | $ (0.27) |
Note 15 - Shareholders' Equit_2
Note 15 - Shareholders' Equity (Details Textual) | Oct. 28, 2011$ / sharesshares | Oct. 31, 2019USD ($)shares | Oct. 31, 2018USD ($)shares | Oct. 31, 2017USD ($) | Jul. 14, 2015shares |
Common Stock, Shares, Outstanding, Ending Balance | 7,458,981 | 7,694,387 | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 400,000 | ||||
Purchase And Retire Percentage Of Shares In Common Stock Outstanding | 6.00% | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 398,400 | ||||
Stock Repurchased and Retired During Period, Shares | 351 | ||||
Stock Repurchased and Retired During Period, Value | $ | $ 1,573 | $ 1,557 | $ 18,122 | ||
Common Stock Dividends, Rights Per Share | 1 | ||||
Minimum Percentage of Stock Owner in Stockholder Protection Rights Agreement | 15.00% | ||||
Preferred Stock Dividends, Rights Per Share, No Par Value | $ / shares | $ 0 | ||||
Preferred Stock, Exercise Price | $ / shares | $ 25 | ||||
Preferred Stock, Number of Votes | 1,000 | ||||
Preferred Stock, Dividend Rate, Common Stock Dividend Amount Multiplier | 1,000 | ||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 0.0001 | ||||
Preferred Stock, Capital Shares Reserved for Future Issuance | 100,000 | ||||
Minimum [Member] | |||||
Stock Repurchase Program, Period in Force | 24 months | ||||
Maximum [Member] | |||||
Stock Repurchase Program, Period in Force | 36 months |
Note 15 - Shareholders' Equit_3
Note 15 - Shareholders' Equity - Share Repurchases (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Shares repurchased (in shares) | 351 | 272 | 5,701 |
Cost | $ 1,573 | $ 1,557 | $ 18,122 |
Note 17 - New Accounting Stan_2
Note 17 - New Accounting Standards Not Yet Adopted (Details Textual) - Accounting Standards Update 2016-02 [Member] - Subsequent Event [Member] | Nov. 01, 2019USD ($) |
Assets, Noncurrent, Total | $ 1,088,719 |
Liabilities, Noncurrent, Total | $ 1,088,719 |
Note 18 - Quarterly Results o_3
Note 18 - Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Net sales | $ 18,249,535 | $ 17,367,068 | $ 18,957,175 | $ 16,750,668 | $ 20,273,277 | $ 23,116,584 | $ 26,887,689 | $ 17,551,040 | $ 71,324,446 | $ 87,828,590 | $ 64,092,848 |
Gross profit | 4,941,600 | 4,491,454 | 5,309,134 | 3,562,559 | 6,661,563 | 7,026,542 | 8,956,275 | 5,228,820 | 18,304,747 | 27,873,200 | 20,797,927 |
Selling, general and administrative expenses | 5,465,463 | 5,418,438 | 5,776,814 | 6,773,645 | 6,802,240 | 6,370,244 | 7,400,779 | 5,557,693 | 23,434,360 | 26,130,956 | 21,968,757 |
Loss before income taxes | (653,065) | (1,072,435) | (612,185) | (3,337,441) | (360,661) | 455,813 | 1,406,570 | (449,620) | $ (5,675,126) | $ 1,052,102 | $ (1,744,209) |
Net loss | $ (656,582) | $ (1,085,294) | $ (617,425) | $ (3,310,020) | $ (350,330) | $ 438,353 | $ 1,390,865 | $ (410,135) | |||
Basic and diluted net loss per share (in dollars per share) | $ (0.09) | $ (0.15) | $ (0.08) | $ (0.44) | $ (0.05) | $ 0.06 | $ 0.18 | $ (0.06) | $ (0.77) | $ 0.14 | $ (0.27) |