Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2020 | Feb. 28, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | R F INDUSTRIES LTD | |
Entity Central Index Key | 0000740664 | |
Current Fiscal Year End Date | --10-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | RFIL | |
Entity Common Stock, Shares Outstanding | 9,753,062 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 14,390 | $ 12,540 |
Trade accounts receivable, net of allowance for doubtful accounts of $39 and $23, respectively | 5,745 | 12,190 |
Inventories | 8,390 | 8,245 |
Other current assets | 721 | 685 |
TOTAL CURRENT ASSETS | 29,246 | 33,660 |
Property and equipment | ||
Equipment and tooling | 3,650 | 3,602 |
Furniture and office equipment | 1,060 | 998 |
Property, Plant and Equipment, Gross | 4,710 | 4,600 |
Less accumulated depreciation | 3,843 | 3,761 |
Total property and equipment, net | 867 | 839 |
Operating lease right of use assets, net | 2,024 | 0 |
Goodwill | 2,753 | 1,340 |
Amortizable intangible assets, net | 3,700 | 1,092 |
Non-amortizable intangible assets | 1,174 | 657 |
Other assets | 68 | 112 |
TOTAL ASSETS | 39,832 | 37,700 |
CURRENT LIABILITIES | ||
Accounts payable | 1,220 | 2,406 |
Accrued expenses | 3,311 | 3,653 |
Income taxes payable | 0 | 21 |
Other current liabilities | 933 | 0 |
TOTAL CURRENT LIABILITIES | 5,464 | 6,080 |
Deferred tax liabilities | 18 | 0 |
Operating lease liabilities | 1,191 | 0 |
Other long-term liabilities | 1,215 | 87 |
TOTAL LIABILITIES | 7,888 | 6,167 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock - authorized 20,000,000 shares of $0.01 par value; 9,745,135 and 9,462,267 shares issued and outstanding at January 31, 2020 and October 31, 2019, respectively | 98 | 95 |
Additional paid-in capital | 22,524 | 21,949 |
Retained earnings | 9,322 | 9,489 |
TOTAL STOCKHOLDERS' EQUITY | 31,944 | 31,533 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 39,832 | $ 37,700 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Trade accounts receivable, allowance for doubtful accounts | $ 39 | $ 23 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 9,745,135 | 9,462,267 |
Common stock, shares outstanding | 9,745,135 | 9,462,267 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $ 12,414 | $ 10,647 |
Cost of sales | 9,161 | 7,502 |
Gross profit | 3,253 | 3,145 |
Operating expenses: | ||
Engineering | 596 | 320 |
Selling and general | 2,656 | 2,039 |
Total operating expenses | 3,252 | 2,359 |
Operating income | 1 | 786 |
Other income | 11 | 22 |
Income before provision (benefit) for income taxes | 12 | 808 |
Provision (benefit) for income taxes | (14) | 168 |
Consolidated net income | $ 26 | $ 640 |
Earnings per share | ||
Earning per share ( Basic) | $ 0 | $ 0.07 |
Earning per share (Diluted) | $ 0 | $ 0.07 |
Weighted average shares outstanding | ||
Basic | 9,564,533 | 9,309,454 |
Diluted | 9,873,336 | 9,838,154 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Balance at Oct. 31, 2018 | $ 93 | $ 20,974 | $ 6,716 | $ 27,783 |
Balance (in shares) at Oct. 31, 2018 | 9,291,201 | |||
Exercise of stock options | $ 1 | 341 | 0 | 342 |
Exercise of stock options (in shares) | 65,734 | |||
Stock-based compensation expense | $ 0 | 114 | 0 | 114 |
Dividends | 0 | 0 | (186) | (186) |
Net Income | 0 | 0 | 640 | 640 |
Balance at Jan. 31, 2019 | $ 94 | 21,429 | 7,170 | 28,693 |
Balance (in shares) at Jan. 31, 2019 | 9,356,935 | |||
Balance at Oct. 31, 2019 | $ 95 | 21,949 | 9,489 | 31,533 |
Balance (in shares) at Oct. 31, 2019 | 9,462,267 | |||
Exercise of stock options | $ 2 | 389 | 0 | 391 |
Exercise of stock options (in shares) | 215,943 | |||
Stock-based compensation expense | $ 0 | 110 | 0 | 110 |
Issuance of restricted stock | $ 1 | (1) | 0 | |
Issuance of restricted stock (in shares) | 54,850 | |||
Issuance of common shares | $ 0 | 77 | 77 | |
Issuance of common shares (in shares) | 12,075 | |||
Dividends | $ 0 | 0 | (193) | (193) |
Net Income | 0 | 0 | 26 | 26 |
Balance at Jan. 31, 2020 | $ 98 | $ 22,524 | $ 9,322 | $ 31,944 |
Balance (in shares) at Jan. 31, 2020 | 9,745,135 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
OPERATING ACTIVITIES: | ||
Consolidated net income | $ 26 | $ 640 |
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities: | ||
Bad debt expense | 4 | 5 |
Depreciation and amortization | 255 | 137 |
Stock-based compensation expense | 187 | 114 |
Deferred income taxes | 62 | 11 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 6,711 | (1,383) |
Inventories | 638 | (1,056) |
Other current assets | (20) | 47 |
Right of use assets | 101 | 0 |
Accounts payable | (1,295) | 402 |
Accrued expenses | (921) | (1,318) |
Income tax payable | (21) | 0 |
Other long-term liabilities | (121) | 0 |
Net cash provided by (used in) operating activities | 5,606 | (2,401) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (53) | (73) |
Purchase of Schrofftech, net of cash acquired ($99) | (3,901) | 0 |
Net cash used in investing activities | (3,954) | (73) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 391 | 342 |
Dividends paid | (193) | (186) |
Net cash provided by financing activities | 198 | 156 |
Net increase (decrease) in cash and cash equivalents | 1,850 | (2,318) |
Cash and cash equivalents of continuing operations, beginning of period | 12,540 | 16,334 |
Cash and cash equivalents, end of year | $ 14,390 | $ 14,016 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($) | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Cash Acquired from Acquisition | $ 99 |
Unaudited interim condensed con
Unaudited interim condensed consolidated financial statements | 3 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unaudited interim condensed consolidated financial statements | Note 1 - Unaudited interim condensed consolidated financial statements Our accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, which are normal and recurring, have been included in order to make the information not misleading. Information included in the consolidated balance sheet as of October 31, 2019 has been derived from, and certain terms used herein are defined in, the audited consolidated financial statements of RF Industries, Ltd. as of October 31, 2019 included in our Annual Report on Form 10-K (“Form 10-K”) for the year ended October 31, 2019 that was previously filed with the Securities and Exchange Commission (“SEC”). Operating results for the three months ended January 31, 2020 are not necessarily indicative of the results that may be expected for the year ending October 31, 2020. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended October 31, 2019. Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of RF Industries, Ltd. and our four wholly-owned subsidiaries, Cables Unlimited, Inc. (“Cables Unlimited”), Rel-Tech Electronics, Inc. (“Rel-Tech”), C Enterprises, Inc. (“C Enterprises”), and Schroff Technologies International, Inc. (“Schrofftech”). C Enterprises is a wholly-owned subsidiary that RF Industries, Ltd. acquired effective March 15, 2019. For periods on or before January 31, 2019, references herein to the "Company" shall refer to RF Industries, Ltd., Cables Unlimited, and Rel-Tech, and periods between January 31, 2019 and October 31, 2019, references to the "Company" shall refer to RF Industries, Ltd., Cables Unlimited, Rel-Tech, and C Enterprises. Schrofftech is a wholly-owned subsidiary that RF Industries, Ltd. acquired effective November 1, 2019. For periods after October 31, 2019, references to the "Company" shall refer to RF Industries, Ltd., Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech. All intercompany balances and transactions have been eliminated in consolidation. Fair value measurement We measure at fair value certain financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. As of January 31, 2020 and October 31, 2019, the carrying amounts reflected in the accompanying condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximated their carrying value due to their short-term nature. See Note 5 for discussion on the fair value of other long-term liabilities. Revenue recognition In accordance with Accounting Standards Update ASU No. 2014-09, Revenue from Contacts with Customers (Topic 606) (“ASC 606”), we recognize revenue in an amount that reflects the consideration to which we expect to be entitled in exchange for goods or services promised to customers. We follow a five-step model to: (1) identify the contract with our customer; (2) identify our performance obligations in our contract; (3) determine the transaction price for our contract; (4) allocate the transaction price to our performance obligations; and (5) recognize revenue when (or as) each performance obligation is satisfied. In accordance with this accounting principle, we recognize revenue using the output method at a point in time when finished goods have been transferred to the customer and there are no other obligations to customers after the title of the goods have transferred. Title of goods are transferred based on shipping terms for each customer – for shipments with terms of FOB Shipping Point, title is transferred upon shipment; for shipments with terms of FOB Destination, title is transferred upon delivery. Leases In accordance with ASU No. 2016-02, Leases, we determine if an arrangement is a lease at inception. Operating leases are included in our consolidated balance sheet as operating lease right of use (“ROU”) assets, other current liabilities, and operating lease liabilities. Finance leases are included in finance ROU assets, other current liabilities, and finance lease liabilities on our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the duration of the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is recognized on the consolidated statements of operations. Recent accounting standards Recently issued accounting pronouncements not yet adopted: In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other, which simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if “the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.” The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact the adoption of this new standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact the adoption of this new standard will have on our consolidated financial statements. Recently issued accounting pronouncements adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases. This ASU requires lessees to recognize lease assets and lease liabilities for those leases classified as operating leases under the current GAAP. Under ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients. We adopted the standard as of November 1, 2019, the beginning of our fiscal 2020, applying the modified retrospective method. We elected the package of practical expedients permitted under the transition guidance with the new standard, which among other things, allows us to carryforward the historical lease classification. We elected the policy which allows us to combine the nonlease components with its related lease components rather than separating, and the policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We have recognized those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. The adoption of the standard resulted in a material recognition of additional right of use assets and lease liabilities of approximately $2.3 million and $2.4 million, respectively, as of November 1, 2019, but did not materially affect our consolidated net income. In May 2014, the FASB issued ASC 606, which superseded Topic 605, Revenue Recognition, in addition to other industry-specific guidance. The new standard requires a company to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, as a revision to ASU 2014-09, which revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e., the original adoption date per ASU 2014-09). In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies certain aspects of the principal-versus-agent guidance, including how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether it recognizes revenue over time or at a point in time. The amendments also clarify when a promised good or service is separately identifiable (i.e., distinct within the context of the contract) and allow entities to disregard items that are immaterial in the context of a contract. On November 1, 2018, we adopted ASC 606 applying the modified retrospective method. We performed a review of ASC 606 as compared to our previous accounting policies for product revenue and did not identify any material impact to revenue. Therefore, there was no adjustment to retained earnings for a cumulative effect. |
Business Acquisition
Business Acquisition | 3 Months Ended |
Jan. 31, 2020 | |
Business Acquisition | |
Business Acquisition | Note 2 - Business Acquisition C Enterprises, Inc. On March 15, 2019, through C Enterprises, Inc. (“C Enterprises”), its newly formed subsidiary, we purchased the business and assets of C Enterprises L.P., a California based designer and manufacturer of quality connectivity solutions to telecommunications and data communications distributors. In consideration for the C Enterprises business and assets, we paid $600,000 in cash and assumed certain liabilities. The acquisition was determined not to be material and was accounted for in accordance with the acquisition method of accounting. The acquired assets and assumed liabilities were recorded at their estimated fair values in accordance with ASC 805, Business Combinations. There were no intangible assets identified as part of the acquisition. The results of C Enterprises’ operations subsequent to March 15, 2019 have been included in the results of the Custom Cabling Manufacturing and Assembly segment (“Custom Cabling segment”) as well as in the consolidated statements of operations. Costs related to the acquisition of C Enterprises were approximately $100,000 and have been expensed as incurred and categorized in selling and general expenses. The following table summarizes the components of the purchase price at fair value at March 15, 2019: Cash consideration paid $ 600,000 Total purchase price $ 600,000 The following table summarizes the allocation of the estimated purchase price at fair value at March 15, 2019: Current assets $ 2,008,000 Fixed assets 30,000 Other assets 18,000 Non-interest bearing liabilities (1,456,000) Net assets $ 600,000 Schroff Technologies International, Inc. On November 4, 2019, we purchased the business of Schroff Technologies International, Inc. (“Schrofftech”), a Rhode Island-based manufacturer and marketer of intelligent thermal control systems used by telecommunications companies across the U.S. and Canada, and shrouds for small cell integration and installation. At the closing, in consideration for the Schrofftech business, we paid the sellers $4 million in cash, and, if certain financial targets are met by Schrofftech over a two-year period, agreed to pay additional cash earn-out payments of up to $2.4 million. The acquisition was accounted for as an acquisition of assets in accordance with the acquisition method of accounting. The acquired assets and assumed liabilities have been recorded at their estimated preliminary fair values. We determined the estimated preliminary fair values with the assistance of appraisals or valuations performed by an independent third-party specialist. We expect to complete the valuation of the net assets in the second quarter of fiscal 2020. Schrofftech serves the high growth wireless, telecom and cable markets. All manufacturing operations are performed at Schrofftech’s facilities in Rhode Island. The Schrofftech business allows us to diversify the types of services provided for our customers in the cable industry. Although the closing occurred on November 4, 2019, the acquisition of Schrofftech is deemed to have become effective for financial accounting purposes as of November 1, 2019. Accordingly, Schrofftech’s financial results have been included in the results of the Custom Cabling segment for the three months ended January 31, 2020 as well as in the consolidated statements of operations. Total costs related to the acquisition of Schrofftech were approximately $136,000, of which $108,000 was incurred in fiscal 2019 and $28,000 was incurred in the three months ended January 31, 2020. All acquisition-related costs have been expensed as incurred and categorized in selling and general expenses. For the three months ended January 31, 2020, Schrofftech contributed revenue and pretax income of $1.1 million and $83,000, respectively. The following table summarizes the components of the purchase price at preliminary fair values at November 1, 2019: Cash consideration paid $ 4,000,000 Earn-out 1,249,000 Total purchase price $ 5,249,000 The following table summarizes the allocation of the estimated preliminary purchase price at fair value at November 1, 2019: Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,413,000 Non-interest bearing liabilities (689,000) Net assets $ 5,249,000 The following unaudited pro forma financial information presents the combined operating results of the Company, C Enterprises, and Schrofftech as if both acquisitions had occurred as of the beginning of the earliest period presented. Pro forma data is subject to various assumptions and estimates and is presented for informational purposes only. This pro forma data does not purport to represent or be indicative of the consolidated operating results that would have been reported had the transaction been completed as described herein, and the data should not be taken as indicative of future consolidated operating results. Unaudited pro forma financial information assuming the acquisition of C Enterprises and Schrofftech as of November 1, 2018 is presented in the following table: Three Months Ended January 31, 2020 2019 Revenue $ 12,414 $ 16,199 Net income 26 1,388 Earnings per share Basic $ 0.00 $ 0.15 Diluted $ 0.00 $ 0.14 |
Inventories and major vendors
Inventories and major vendors | 3 Months Ended |
Jan. 31, 2020 | |
Inventories and major vendors | |
Inventories and major vendors | Note 3 - Inventories and major vendors Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or net realizable value. Cost has been determined using the weighted average cost method. Inventories consist of the following (in thousands): January 31, 2020 October 31, 2019 Raw materials and supplies $ 3,949 $ 3,576 Work in process 489 791 Finished goods 3,952 3,878 Totals $ 8,390 $ 8,245 No vendors accounted for more than 10% of inventory purchases for the three months ended January 31, 2020. For the three months ended January 31, 2019, two vendors each accounted for 17% of inventory purchases. We have arrangements with these vendors to purchase products based on purchase orders that we periodically issue. |
Other current assets
Other current assets | 3 Months Ended |
Jan. 31, 2020 | |
Other current assets | |
Other current assets | Note 4 - Other current assets Other current assets consist of the following (in thousands): January 31, 2020 October 31, 2019 Prepaid taxes $ 65 $ — Prepaid expense 523 346 Other 133 339 Totals $ 721 $ 685 |
Accrued expenses and other long
Accrued expenses and other long-term liabilities | 3 Months Ended |
Jan. 31, 2020 | |
Accrued expenses | |
Accrued expenses and other long-term liabilities | Note 5 - Accrued expenses and other long-term liabilities Accrued expenses consist of the following (in thousands): January 31, 2020 October 31, 2019 Wages payable $ 1,176 $ 1,591 Accrued receipts 1,068 1,683 Warranty liability 200 — Deferred revenue 404 — Other accrued expenses 463 379 Totals $ 3,311 $ 3,653 Accrued receipts represent purchased inventory for which invoices have not been received. We recognize an accrued warranty liability for the estimated claims to remedy potential deficiencies of quality or performance of our products in the Schrofftech division within the Custom Cabling segment. The product warranties extend over various periods, depending upon the product subject to the warranty. We record a provision for estimated future warranty claims based upon the historical relationship of warranty claims to sales, any specifically identified warranty issues and current trends and knowledge. We base our estimates in part on historical experience and on assumptions that are believed to be reasonable under the circumstances and revise our estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Although these estimates are based on management’s knowledge of and experience with past and current events and on management’s assumptions about future events, it is reasonably possible that they may ultimately differ materially from actual results, including in the case of a significant product failure. Warranty related expenses have not been material and were not material for the period ended January 31, 2020. Warranty liabilities were $200,000 as of January 31, 2020. The purchase agreement for the Schrofftech acquisition provides for earn-out payments of up to $2,400,000, which is earned through October 31, 2022 and payable on October 31, 2022. The initial earn-out liability was valued at its fair value using an option pricing based approach with a risk-neutral framework using Black Scholes due to the option-like nature of the earn-out payout structure. The earn-out was and will continue to be revalued quarterly using a present value approach and any resulting increase or decrease will be recorded into selling and general expenses. Any changes in the amount of the actual results and forecasted scenarios could impact the fair value. Significant judgment is employed in determining the appropriateness of the assumptions used in calculating the fair value of the earn-out as of the acquisition date. Accordingly, significant variances between actual and forecasted results or changes in the assumptions can materially impact the amount of contingent consideration expense we record in future periods. The contingent consideration liability represents future earn-out liability that we may be required to pay in conjunction with the acquisition of Schrofftech. We estimate the fair value of the earn-out liability using an option pricing based approach with a risk-neutral framework using Black Scholes related to Schrofftech calculated at net present value (level 3 of the fair value hierarchy). The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2020 (in thousands): Description Level 1 Level 2 Level 3 Earn-out liability $ — $ — $ 1,215 There were no financial assets or liabilities measured at fair value as of October 31, 2019. The following table summarizes the Level 3 transactions for the three months ended January 31, 2020: Level 3 January 31, 2020 October 31, 2019 Beginning balance $ 1,249 $ — Payments — — Change in value (34) — Ending Balance $ 1,215 $ — As of January 31, 2020, the full amount of the $1.2 million earn-out was classified as other long-term liabilities. |
Earnings per share
Earnings per share | 3 Months Ended |
Jan. 31, 2020 | |
Intangible assets | |
Earnings per share | Note 6 - Earnings per share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. Potentially issuable securities totaling 392,838 and 93,000 shares for the three months ended January 31, 2020 and 2019, respectively, were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect. The following table summarizes the computation of basic and diluted weighted average shares outstanding: Three Months Ended January 31, 2020 2019 Weighted average shares outstanding for basic earnings per share 9,564,533 9,309,454 Add effects of potentially dilutive securities-assumed exercise of stock options 308,803 528,700 Weighted average shares outstanding for diluted earnings per share 9,873,336 9,838,154 |
Stock-based compensation and eq
Stock-based compensation and equity transactions | 3 Months Ended |
Jan. 31, 2020 | |
Stock-based compensation and equity transactions | |
Stock-based compensation and equity transactions | Note 7 - Stock-based compensation and equity transactions On December 3, 2018, two employees were each granted 25,000 incentive stock options. These options vested 5,000 each on the date of grant, and the balance vests as to 5,000 shares each per year thereafter on each of the next four anniversaries of December 3, 2018, and expire ten years from the date of grant. Also on December 3, 2018, one employee was granted 10,000 incentive stock options. These options vested 2,000 shares on the date of grant, and the balance vests as to 2,000 shares per year thereafter on each of the next four anniversaries of December 3, 2018, and expire ten years from the date of grant. On March 8, 2019, one employee was granted 25,000 incentive stock options. These options vested 5,000 on the date of grant, and the balance vests as to 5,000 shares per year thereafter on each of the next four anniversaries of March 8, 2019, and expire ten years from the date of grant. On December 6, 2019, one employee was granted 50,000 incentive stock options. These options vested 10,000 on the date of grant, and the balance vests as to 10,000 shares per year thereafter on each of the next four anniversaries of December 6, 2019, and expire ten years from the date of grant. On January 9, 2020, we granted the following equity awards to our managers and officers: • • • No other shares or options were granted to company employees during the three months ended January 31, 2020 and 2019. The weighted average fair value of employee stock options that were granted during the three months ended January 31, 2020 and 2019 was estimated to be $3.13 and $4.14, respectively, per share, using the Black-Scholes option pricing model with the following assumptions: Three Months Ended January 31, 2020 2019 Risk-free interest rate 1.57 % 2.98 % Dividend yield 1.23 % 0.94 % Expected life of the option 6.47 years 5.76 years Volatility factor 49.14 % 55.64 % Expected volatilities are based on historical volatility of our stock price and other factors. We used the historical method to calculate the expected life of the 2020 and 2019 option grants. The expected life represents the period of time that options granted are expected to be outstanding. The risk-free rate is based on the U.S. Treasury rate with a maturity date corresponding to the options’ expected life. The dividend yield is based upon the historical dividend yield. Company stock option plans Descriptions of our stock option plans are included in Note 10 of our Annual Report on Form 10-K for the year ended October 31, 2019. A summary of the status of the options granted under our stock option plans as of January 31, 2020 and the changes in options outstanding during the three months then ended is presented in the table that follows: Weighted Average Shares Exercise Price Outstanding at November 1, 2019 890,147 $ 3.62 Options granted 130,241 $ 6.53 Options exercised (215,943) $ 1.81 Options outstanding at January 31, 2020 804,445 $ 4.58 Options exercisable at January 31, 2020 417,279 $ 4.24 Options vested and expected to vest at January 31, 2020 803,409 $ 4.59 Weighted average remaining contractual life of options outstanding as of January 31, 2020: 5.73 years Weighted average remaining contractual life of options exercisable as of January 31, 2020: 3.72 years Weighted average remaining contractual life of options vested and expected to vest as of January 31, 2020: 5.72 years Aggregate intrinsic value of options outstanding at January 31, 2020: $1,474,000 Aggregate intrinsic value of options exercisable at January 31, 2020: $886,000 Aggregate intrinsic value of options vested and expected to vest at January 31, 2020: $1,464,000 As of January 31, 2020, $765,000 and $313,000 of expenses with respect to nonvested stock options and restricted shares, respectively, has yet to be recognized but is expected to be recognized over a weighted average period of 4.64 and 1.50 years, respectively. Non-employee directors receive a compensation package of $50,000 annually, which is paid one-half in cash and one-half through the grant of non-qualified awards. For fiscal 2020, compensation payable to non-employee directors will be prorated from November 1, 2019 through August 31, 2020. On November 4, 2019, we granted each of our five non-employee directors 3,270 shares of restricted stock. The number of restricted shares granted to each director was determined by prorating $25,000 for the 10 months ending August 31, 2020 and dividing by the 20-day average RFIL stock price ($6.36). These restricted shares vest ratably through August 31, 2020. Stock option expense During the three months ended January 31, 2020 and 2019, stock-based compensation expense totaled $187,000 and $114,000, respectively, and was classified in selling and general expense. |
Concentrations of credit risk
Concentrations of credit risk | 3 Months Ended |
Jan. 31, 2020 | |
Concentrations of credit risk | |
Concentrations of credit risk | Note 8 - Concentrations of credit risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At January 31, 2020, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $13.1 million. For the three months ending January 31, 2020, two customers, both distributors, each accounted for approximately 11% of net sales, while one other customer, a wireless carrier, accounted for approximately 17% of net sales. The two distributors had accounts receivable balances that each accounted for 12% of the total net accounts receivable balance at January 31, 2020. For the three months ending January 31, 2019, two customers, a distributor and a wireless carrier, accounted for approximately 38% and 14%, respectively, of net sales. At January 31, 2019, these two customers’ accounts receivable balances accounted for approximately 30% and 22%, respectively, of the total net accounts receivable balance. Although these customers have been on-going major customers of the Company, the written agreements with these customers do not have any minimum purchase obligations and they could stop buying our products at any time and for any reason. A reduction, delay or cancellation of orders from these customers or the loss of these customers could significantly reduce our future revenues and profits. |
Segment information
Segment information | 3 Months Ended |
Jan. 31, 2020 | |
Segment information | |
Segment information | Note 9 - Segment information We aggregate operating divisions into two reporting segments that have similar economic characteristics primarily in the following areas: (1) the nature of the product and services; (2) the nature of the production process; (3) the type or class of customer for their products and services; (4) the methods used to distribute their products or services; (5) if applicable, the nature of the regulatory environment. Based upon this evaluation, as of January 31, 2020, we had two segments – RF Connector and Cable Assembly (“RF Connector segment”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling segment”). The RF Connector segment consisted of one division and the Custom Cabling segment was composed of four divisions. The five divisions that met the quantitative thresholds for segment reporting are the RF Connector and Cable Assembly division (“RF Connector division”), Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech. While each segment has similar products and services, there was little overlapping of these services to their customer base. The biggest difference in segments is in the channels of sales: sales or product and services for the RF Connector segment were primarily through the distribution channel, while the Custom Cabling segment sales were through a combination of distribution and direct to the end customer. Management identifies segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the RF Connector division constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment. As reviewed by our chief operating decision maker, we evaluate the performance of each segment based on income or loss before income taxes. We charge depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, right of use assets, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same for the Company as a whole. Substantially all of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the three months ended January 31, 2020 and 2019 (in thousands): Three Months Ended January 31, 2020 2019 United States $ 12,173 $ 10,470 Foreign Countries: Canada 116 165 Mexico 5 — All Other 120 12 241 177 Totals $ 12,414 $ 10,647 Net sales, income before provision for income taxes and other related segment information for the three months ended January 31, 2020 and 2019 are as follows (in thousands): RF Connector Custom Cabling and Manufacturing and 2020 Cable Assembly Assembly Corporate Total Net sales $ 3,189 $ 9,225 $ — $ 12,414 Income (loss) before provision for income taxes 282 (281) 11 12 Depreciation and amortization 42 213 — 255 Total assets 7,496 17,158 15,178 39,832 2019 Net sales $ 3,258 $ 7,389 $ — $ 10,647 Income before provision for income taxes 280 506 22 808 Depreciation and amortization 45 92 — 137 Total assets 6,635 11,026 14,846 32,507 |
Income taxes
Income taxes | 3 Months Ended |
Jan. 31, 2020 | |
Income tax | |
Income taxes | Note 10 - Income taxes We use an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate, to determine its quarterly provision (benefit) for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The provision (benefit) for income taxes was (120%) and 21% of income before income taxes for the three months ended January 31, 2020 and 2019, respectively. The change in the effective tax rate from the fiscal 2019 quarter to fiscal 2020 quarter was primarily driven by the tax-effect of our year-to-date income adjusted for book-tax differences which has a rate impact compared to forecasted book income for the year. We had $123,000 and $80,000 of unrecognized tax benefits, inclusive of interest and penalties, as of January 31, 2020 and October 31, 2019, respectively. The unrecognized tax benefits, if recognized, would result in a net tax benefit of $28,000 as of January 31, 2020. |
Intangible assets
Intangible assets | 3 Months Ended |
Jan. 31, 2020 | |
Intangible assets | |
Intangible assets | Note 11 - Intangible assets Intangible assets consist of the following (in thousands): January 31, 2020 October 31, 2019 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 200 Accumulated amortization (211) (200) 212 — Customer relationships (estimated lives 7 - 15 years) $ 5,058 $ 2,879 Accumulated amortization (2,005) (1,884) 3,053 995 Backlog (estimated life 1 - 2 years) 287 134 Accumulated amortization (167) (134) 120 — Patents (estimated life 10 - 14 years) 368 142 Accumulated amortization (53) (45) 315 97 Totals $ 3,700 $ 1,092 Non-amortizable intangible assets: Trademarks $ 1,174 $ 657 Amortization expense for the three months ended January 31, 2020 and the year ended October 31, 2019 was $173,000 and $275,000, respectively. As of January 31, 2020, the weighted-average amortization period for the amortizable intangible assets is 8.39 years. |
Commitments
Commitments | 3 Months Ended |
Jan. 31, 2020 | |
Commitments | |
Commitments | Note 12 - Commitments We currently lease our corporate headquarters and RF connector and cable assembly manufacturing facilities in San Diego, California. At that location, we lease three buildings with a total of approximately 21,908 square feet of office, warehouse and manufacturing space, that houses our corporate administration, sales and marketing, and engineering departments. The buildings also are used for production and warehousing by the RF Connector division. The term of the lease expires on July 31, 2022, and the rental payments under the lease currently are $26,176 per month. The San Diego lease also requires the payment of our pro rata share of real estate taxes and insurance, maintenance and other operating expenses related to the facilities. (i) The Cables Unlimited division leases its 12,000 square foot manufacturing facility in Yaphank, New York, from K&K Unlimited, a company controlled by Darren Clark, the former owner and current President of Cables Unlimited. Cables Unlimited’s monthly rent expense under the lease is $13,000 per month, plus payments of all utilities, janitorial expenses, routine maintenance costs and costs of insurance for Cables Unlimited’s business operations and equipment. The current lease expires on June 30, 2021. (ii) The Rel-Tech Electronic division leases an approximately 13,750 square feet located in Milford, Connecticut. The old lease expired in August 2019. On September 1, 2019, Rel-Tech extended its lease term for an additional two years to August 31, 2021, with escalating rent payments over the two years. The net monthly rent payments currently are $8,969 per month. (iii) On November 1, 2018, the Cables Unlimited division entered into a lease agreement with 100 Bellport Avenue, LLC, as landlord, for approximately 7,500 square feet located in Yaphank, New York, with a monthly rent expense of $5,625. On February 1, 2019, Cables Unlimited entered into an amendment to this lease to increase the leased space by an additional 5,000 square feet and increase the monthly rent by $3,750, resulting in a total rent expense of $9,375 per month. The lease expired on October 31, 2019 and was converted to a month-to-month lease at the same monthly rental amount. (iv) The C Enterprises division leases approximately 24,014 square feet of office, warehouse, and manufacturing space located in Vista, California. The term of the lease expires on June 30, 2023, and the rental payments under the lease currently are $18,491 per month, plus payments of real estate taxes, management fee, property insurance and other operating expenses related to the facilities. (v) The Schrofftech facilities, consisting of two buildings for a total of 10,700 square feet, are leased by RF Industries, Ltd. under two leases that were renewed effective February 1, 2020 for two years expiring January 31, 2022. The aggregate monthly rental payment under the new leases currently is $6,525 per month. (vi) On February 15, 2020, the RF Connector and Cable Assembly division entered into a lease for approximately 625 square feet located in Towson, Maryland and expires on February 28, 2022. The rental payments under the lease currently are $1,016 per month, plus estimated monthly payments of $143 for common area maintenance fees. Additionally, on January 1, 2020, the Cables Unlimited division began making rental payments for various storage units located at the Yaphank facility. Monthly rental payments are approximately $1,000 and made to K&K Unlimited, the company owned by Darren Clark, former owner and current President of Cables Unlimited. Upon inception of this arrangement, it was determined that there was no physically distinct identified asset and therefore, the arrangement does not constitute a lease. The rental payments, however, remain as rental expense. For the three months ended January 31, 2020, the aggregate monthly rental payments for all of our facilities was approximately $83,000 per month, plus utilities, maintenance and insurance. Upon adoption of ASU 2016-02 on November 1, 2019, we adopted the practical expedient whereby the lease qualification and classification was carried over from the accounting for leases under ASC 840. The lease contracts for the corporate headquarters, RF Connector division manufacturing facilities, Cables Unlimited, Rel-Tech, and C Enterprises had commenced prior to the effective date of November 1, 2019. These contracts, therefore, were determined to contain leases. All other new contracts have been assessed for the existence of a lease and for the proper classification into operating leases. The rate implicit in the leases was undeterminable, and therefore, the discount rate used in all lease contracts is our incremental borrowing rate. We also have other operating leases for certain equipment. The components of our operating lease expenses were as follows (in thousands): Three Months Ended January 31, 2020 Operating lease cost $ 254 Other information related to leases was as follows (in thousands): Three Months Ended January 31, 2020 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 2,024 Weighted Average Remaining Lease Term Operating leases 30.49 months Weighted Average Discount Rate Operating leases 3.54 % Future minimum lease payments under non-cancellable leases as of January 31, 2020 were as follows: Year ended October 31, Operating Leases 2020 (excluding three months ended January 31, 2020) $ 719 2021 854 2022 507 2023 166 2024 — Thereafter — Total future minimum lease payments 2,246 Less imputed interest (122) Total $ 2,124 Reported as of January 31, 2020 Operating Leases Other current liabilities $ 933 Operating lease liabilities 1,191 Finance lease liabilities — Total $ 2,124 As of January 31, 2020, operating lease ROU asset was $2.0 million and operating lease liability totaled $2.1 million, of which $933,000 is classified as current. There were no finance leases as of January 31, 2020. We have additional operating leases that have not yet commenced as of January 31, 2020 of $178,000. These operating leases will commence in February 2020 with lease terms of 24 months. |
Line of credit
Line of credit | 3 Months Ended |
Jan. 31, 2020 | |
Line of credit | |
Line of credit | Note 13 – Line of credit In November 2019, we entered into an agreement for a revolving line of credit (“LOC”) in the amount of $5.0 million. Amounts outstanding under the LOC shall bear interest at a rate of 2.0% plus LIBOR Daily Floating Rate (“base interest rate”), with interest payable on the first day of each month. Borrowings under the LOC are secured by a security interest in certain assets of the Company. The LOC contains certain loan covenants. Failure to maintain the loan covenants may constitute an event of default, resulting in all outstanding amounts of principal and interest becoming immediately due and payable. All outstanding principal and interest is due and payable on December 1, 2021. As of January 31, 2020, we are in compliance with all loan covenants. Additionally, as of January 31, 2020, no amounts were outstanding under the line of credit. |
Cash dividend and declared divi
Cash dividend and declared dividends | 3 Months Ended |
Jan. 31, 2020 | |
Cash dividend and declared dividends | |
Cash dividend and declared dividends | Note 14 - Cash dividend and declared dividends We paid dividends of $0.02 per share during the three months ended January 31, 2020 and 2019 for a total of $193,000 and $186,000, respectively. |
Subsequent events
Subsequent events | 3 Months Ended |
Jan. 31, 2020 | |
Subsequent events | |
Subsequent event | Note 15 - Subsequent events On February 1, 2020, the two leases for the Schrofftech facilities were renewed effective February 1, 2020 for two years expiring January 31, 2022. The aggregate monthly rental payments under the new leases are $6,525 per month. On February 15, 2020, the RF Connector division entered into a lease agreement for an approximately 625 square foot office facility located in Towson, Maryland that expires on February 28, 2022. The rental payments under the lease currently are $1,016 per month, plus estimated monthly payments of $143 for common area maintenance fees. On March 5, 2020, the Board of Directors declared a quarterly cash dividend of $0.02 per share payable on April 15, 2020 to stockholders of record on March 31, 2020. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Business Acquisition [Line Items] | |
Summary of pro forma financial information | Three Months Ended January 31, 2020 2019 Revenue $ 12,414 $ 16,199 Net income 26 1,388 Earnings per share Basic $ 0.00 $ 0.15 Diluted $ 0.00 $ 0.14 |
C Enterprises, Inc. | |
Business Acquisition [Line Items] | |
Summarizes the components of the purchase price at fair value | The following table summarizes the components of the purchase price at fair value at March 15, 2019: Cash consideration paid $ 600,000 Total purchase price $ 600,000 The following table summarizes the allocation of the estimated purchase price at fair value at March 15, 2019: Current assets $ 2,008,000 Fixed assets 30,000 Other assets 18,000 Non-interest bearing liabilities (1,456,000) Net assets $ 600,000 |
Schrofftech | |
Business Acquisition [Line Items] | |
Summarizes the allocation of the estimated purchase price at fair value | The following table summarizes the components of the purchase price at preliminary fair values at November 1, 2019: Cash consideration paid $ 4,000,000 Earn-out 1,249,000 Total purchase price $ 5,249,000 The following table summarizes the allocation of the estimated preliminary purchase price at fair value at November 1, 2019: Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,413,000 Non-interest bearing liabilities (689,000) Net assets $ 5,249,000 |
Inventories and major vendors (
Inventories and major vendors (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Inventories and major vendors | |
Components of Inventories | Inventories consist of the following (in thousands): January 31, 2020 October 31, 2019 Raw materials and supplies $ 3,949 $ 3,576 Work in process 489 791 Finished goods 3,952 3,878 Totals $ 8,390 $ 8,245 |
Other current assets (Tables)
Other current assets (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Other current assets | |
Schedule of other current assets | Other current assets consist of the following (in thousands): January 31, 2020 October 31, 2019 Prepaid taxes $ 65 $ — Prepaid expense 523 346 Other 133 339 Totals $ 721 $ 685 |
Accrued expenses and other lo_2
Accrued expenses and other long-term liabilities (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Accrued expenses | |
Accrued expenses | Accrued expenses consist of the following (in thousands): January 31, 2020 October 31, 2019 Wages payable $ 1,176 $ 1,591 Accrued receipts 1,068 1,683 Warranty liability 200 — Deferred revenue 404 — Other accrued expenses 463 379 Totals $ 3,311 $ 3,653 |
Summarizes our financial assets and liabilities measured at fair value on a recurring basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2020 (in thousands): Description Level 1 Level 2 Level 3 Earn-out liability $ — $ — $ 1,215 |
Summarizes the Level 3 transactions | The following table summarizes the Level 3 transactions for the three months ended January 31, 2020: Level 3 January 31, 2020 October 31, 2019 Beginning balance $ 1,249 $ — Payments — — Change in value (34) — Ending Balance $ 1,215 $ — |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Intangible assets | |
Computation of Basic and Diluted Weighted Average Shares Outstanding | The following table summarizes the computation of basic and diluted weighted average shares outstanding: Three Months Ended January 31, 2020 2019 Weighted average shares outstanding for basic earnings per share 9,564,533 9,309,454 Add effects of potentially dilutive securities-assumed exercise of stock options 308,803 528,700 Weighted average shares outstanding for diluted earnings per share 9,873,336 9,838,154 |
Stock-based compensation and _2
Stock-based compensation and equity transactions (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Stock-based compensation and equity transactions | |
Computation of Weighted Average Fair Value of Employee Stock Options using Black-Scholes Option Pricing Model Assumptions | Black-Scholes option pricing model with the following assumptions: Three Months Ended January 31, 2020 2019 Risk-free interest rate 1.57 % 2.98 % Dividend yield 1.23 % 0.94 % Expected life of the option 6.47 years 5.76 years Volatility factor 49.14 % 55.64 % |
Summary of Status of Options Granted under Stock Option Plans and Changes in Options Outstanding | A summary of the status of the options granted under our stock option plans as of January 31, 2020 and the changes in options outstanding during the three months then ended is presented in the table that follows: Weighted Average Shares Exercise Price Outstanding at November 1, 2019 890,147 $ 3.62 Options granted 130,241 $ 6.53 Options exercised (215,943) $ 1.81 Options outstanding at January 31, 2020 804,445 $ 4.58 Options exercisable at January 31, 2020 417,279 $ 4.24 Options vested and expected to vest at January 31, 2020 803,409 $ 4.59 |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Segment information | |
Sales by Geographic Area | Three Months Ended January 31, 2020 2019 United States $ 12,173 $ 10,470 Foreign Countries: Canada 116 165 Mexico 5 — All Other 120 12 241 177 Totals $ 12,414 $ 10,647 |
Net Sales, Income Before Provision for Income Taxes and Other Related Segment Information | Net sales, income before provision for income taxes and other related segment information for the three months ended January 31, 2020 and 2019 are as follows (in thousands): RF Connector Custom Cabling and Manufacturing and 2020 Cable Assembly Assembly Corporate Total Net sales $ 3,189 $ 9,225 $ — $ 12,414 Income (loss) before provision for income taxes 282 (281) 11 12 Depreciation and amortization 42 213 — 255 Total assets 7,496 17,158 15,178 39,832 2019 Net sales $ 3,258 $ 7,389 $ — $ 10,647 Income before provision for income taxes 280 506 22 808 Depreciation and amortization 45 92 — 137 Total assets 6,635 11,026 14,846 32,507 |
Intangible assets (Tables)
Intangible assets (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Intangible assets | |
Schedule of Intangible assets | Intangible assets consist of the following (in thousands): January 31, 2020 October 31, 2019 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 200 Accumulated amortization (211) (200) 212 — Customer relationships (estimated lives 7 - 15 years) $ 5,058 $ 2,879 Accumulated amortization (2,005) (1,884) 3,053 995 Backlog (estimated life 1 - 2 years) 287 134 Accumulated amortization (167) (134) 120 — Patents (estimated life 10 - 14 years) 368 142 Accumulated amortization (53) (45) 315 97 Totals $ 3,700 $ 1,092 Non-amortizable intangible assets: Trademarks $ 1,174 $ 657 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Commitments | |
Summary of components of our operating lease expenses | The components of our operating lease expenses were as follows (in thousands): Three Months Ended January 31, 2020 Operating lease cost $ 254 |
Summary of other information related to leases | Other information related to leases was as follows (in thousands): Three Months Ended January 31, 2020 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 2,024 Weighted Average Remaining Lease Term Operating leases 30.49 months Weighted Average Discount Rate Operating leases 3.54 % |
Summary of future minimum lease payments under non-cancellable leases | Future minimum lease payments under non-cancellable leases as of January 31, 2020 were as follows: Year ended October 31, Operating Leases 2020 (excluding three months ended January 31, 2020) $ 719 2021 854 2022 507 2023 166 2024 — Thereafter — Total future minimum lease payments 2,246 Less imputed interest (122) Total $ 2,124 Reported as of January 31, 2020 Operating Leases Other current liabilities $ 933 Operating lease liabilities 1,191 Finance lease liabilities — Total $ 2,124 |
Unaudited interim condensed c_2
Unaudited interim condensed consolidated financial statements - Estimated Impact on adoption of ASU 2016-02: Leases (Detail) - USD ($) $ in Thousands | Nov. 01, 2019 | Jan. 31, 2020 | Oct. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | ||
Lease, Practical Expedients, Package | true | ||
Lease, Practical Expedient, Lessor Single Lease Component | true | ||
Lessor, Combined Component, Topic | Topic 842 | ||
Operating lease ROU asset | $ 2,024 | $ 0 | |
Lease liabilities | $ 2,124 | ||
Accounting Standards Update No. 2016-02: Leases | Forecast Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease ROU asset | $ 2,300 | ||
Lease liabilities | $ 2,400 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - C Enterprises, Inc. | Mar. 15, 2019USD ($) |
Payments to Acquire Businesses, Gross | $ 600,000 |
Selling And General Expenses [Member] | |
Business Combination, Acquisition Related Costs | $ 100,000 |
Business Acquisition - Summariz
Business Acquisition - Summarizes the components of the purchase price at fair value (Details) - C Enterprises, Inc. | Mar. 15, 2019USD ($) |
Components of the purchase price at fair value | |
Cash consideration paid | $ 600,000 |
Total purchase price | 600,000 |
Allocation of the estimated purchase price at fair value | |
Current assets | 2,008,000 |
Fixed assets | 30,000 |
Other assets | 18,000 |
Non-interest bearing liabilities | (1,456,000) |
Net assets | $ 600,000 |
Business Acquisition - Summar_2
Business Acquisition - Summarizes the allocation of the estimated purchase price at fair value (Details) - USD ($) | Nov. 04, 2019 | Nov. 01, 2019 | Jan. 31, 2020 | Oct. 31, 2019 |
Allocation of the estimated purchase price at fair value | ||||
Goodwill | $ 2,753,000 | $ 1,340,000 | ||
Schrofftech | ||||
Business Acquisition [Line Items] | ||||
Cash consideration paid | $ 4,000,000 | $ 4,000,000 | ||
Earn-out Payment, Targeted Period | 2 years | |||
Additional cash earn-out payments | $ 2,400,000 | 1,249,000 | ||
Total costs related to the acquisition | 136,000 | 28,000 | $ 108,000 | |
Contributed revenue | 1,100,000 | |||
Contributed pretax income | $ 83,000 | |||
Components of the purchase price at fair value | ||||
Cash consideration paid | 4,000,000 | 4,000,000 | ||
Earn-out | $ 2,400,000 | 1,249,000 | ||
Total purchase price | 5,249,000 | |||
Allocation of the estimated purchase price at fair value | ||||
Current assets | 1,168,000 | |||
Fixed assets | 58,000 | |||
Intangible assets | 3,299,000 | |||
Goodwill | 1,413,000 | |||
Non-interest bearing liabilities | (689,000) | |||
Net assets | $ 5,249,000 |
Business Acquisition - Pro form
Business Acquisition - Pro forma financial information (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Unaudited pro forma financial information | ||
Revenue | $ 12,414 | $ 16,199 |
Net income | $ 26 | $ 1,388 |
Earnings per share, basic | $ 0 | $ 0.15 |
Earnings per share, diluted | $ 0 | $ 0.14 |
Inventories and major vendors -
Inventories and major vendors - Components of Inventories (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Inventories and major vendors | ||
Raw materials and supplies | $ 3,949 | $ 3,576 |
Work in process | 489 | 791 |
Finished goods | 3,952 | 3,878 |
Totals | $ 8,390 | $ 8,245 |
Inventories and major vendors_2
Inventories and major vendors - Additional Information (Details) | 3 Months Ended |
Jan. 31, 2019 | |
Two Vendors [Member] | |
Inventory [Line Items] | |
Concentration risk, percentage | 17.00% |
Other current assets (Details)
Other current assets (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Other current assets | ||
Prepaid taxes | $ 65 | $ 0 |
Prepaid expense | 523 | 346 |
Other | 133 | 339 |
Totals | $ 721 | $ 685 |
Accrued expenses and other lo_3
Accrued expenses and other long-term liabilities (Details) - USD ($) | Jan. 31, 2020 | Oct. 31, 2019 |
Accrued expenses | ||
Wages payable | $ 1,176,000 | $ 1,591,000 |
Accrued receipts | 1,068,000 | 1,683,000 |
Warranty Liabilities | 200,000 | 0 |
Deferred Revenue | 404,000 | 0 |
Other accrued expenses | 463,000 | 379,000 |
Totals | 3,311,000 | $ 3,653,000 |
Earn-out liability | $ 2,400,000 |
Accrued expenses and other lo_4
Accrued expenses and other long-term liabilities -Summarizes our financial assets and liabilities measured at fair value on a recurring basis (Detail) - USD ($) | Jan. 31, 2020 | Oct. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | |
Financial Liabilities Fair Value Disclosure | $ 0 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Earn-out liability | $ 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Earn-out liability | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Earn-out liability | $ 1,215,000 |
Accrued expenses and other lo_5
Accrued expenses and other long-term liabilities -Summarizes the level 3 transactions (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2020 | Oct. 31, 2019 | |
Other long-term liabilities | ||
The Level 3 transactions | ||
Ending Balance | $ 1,200,000 | |
Level 3 | ||
The Level 3 transactions | ||
Beginning balance | 1,249 | $ 0 |
Payments | 0 | 0 |
Change in value | (34) | 0 |
Ending Balance | $ 1,215 | $ 1,249 |
Earnings per share - Computatio
Earnings per share - Computation of Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Intangible assets | ||
Weighted average shares outstanding for basic earnings per share | 9,564,533 | 9,309,454 |
Add effects of potentially dilutive securities-assumed exercise of stock options | 308,803 | 528,700 |
Weighted average shares outstanding for diluted earnings per share (C) | 9,873,336 | 9,838,154 |
Earnings per share - Additional
Earnings per share - Additional Information (Detail) - shares | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Intangible assets | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 392,838 | 93,000 |
Stock-based compensation and _3
Stock-based compensation and equity transactions - Summary of fair value of employee and non-employee directors' stock options (Detail) | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Stock-based compensation and equity transactions | ||
Risk-free interest rate | 1.57% | 2.98% |
Dividend yield | 1.23% | 0.94% |
Expected life of the option | 6 years 5 months 19 days | 5 years 9 months 4 days |
Volatility factor | 49.14% | 55.64% |
Stock options - Summary of stat
Stock options - Summary of status of options granted under stock option plans and changes in options outstanding (Detail) - Stock Option | 3 Months Ended |
Jan. 31, 2020$ / sharesshares | |
Shares | |
Outstanding at beginning of year | shares | 890,147 |
Options granted | shares | 130,241 |
Options exercised | shares | (215,943) |
Options outstanding at end of year | shares | 804,445 |
Options exercisable at January 31, 2019 | shares | 417,279 |
Options vested and expected to vest at end of year | shares | 803,409 |
Weighted Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 3.62 |
Options granted | $ / shares | 6.53 |
Options exercised | $ / shares | 1.81 |
Options outstanding at end of year | $ / shares | 4.58 |
Options exercisable at end of year | $ / shares | 4.24 |
Options vested and expected to vest at end of year | $ / shares | $ 4.59 |
Stock-based compensation and _4
Stock-based compensation and equity transactions - Additional Information (Detail) - USD ($) | Jan. 31, 2020 | Jan. 09, 2020 | Dec. 06, 2019 | Mar. 08, 2019 | Dec. 03, 2018 | Jan. 31, 2020 | Jan. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average remaining life of options outstanding | 5 years 8 months 23 days | ||||||
Weighted average remaining contractual life of options exercisable | 3 years 8 months 19 days | ||||||
Weighted average life of options vested and expected to vest | 5 years 8 months 19 days | ||||||
Aggregate intrinsic value of options outstanding | $ 1,474,000 | $ 1,474,000 | |||||
Aggregate intrinsic value of options exercisable | 886,000 | 886,000 | |||||
Aggregate intrinsic value of options vested and expected to vest | $ 1,464,000 | 1,464,000 | |||||
Stock based arrangements yet to be recognized, weighted average period expected to be recognized | 4 years 7 months 21 days | ||||||
Stock based compensation expense | 187,000 | $ 114,000 | |||||
Selling And General Expenses [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation expense | $ 187,000 | $ 114,000 | |||||
Nonqualified Plan [Member] | Share-based Payment Arrangement, Nonemployee [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 3,270 | ||||||
Non-employee director annual grant | $ 50,000 | $ 50,000 | |||||
Fair value of stock price per share | $ 6.36 | $ 6.36 | |||||
Share based goods and non employee services transaction value of stock issued | $ 25,000 | ||||||
Three employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation | $ 77,000 | ||||||
Three employees | Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 12,075 | ||||||
Incentive stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested stock-based arrangements yet to be recognized | $ 765,000 | $ 765,000 | |||||
Incentive stock options | Share-based Payment Arrangement, Employee [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 0 | 0 | |||||
Fair value of stock price per share | $ 3.13 | $ 3.13 | $ 4.14 | ||||
Incentive stock options | One Employee [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 50,000 | 25,000 | 10,000 | ||||
Vested shares | 10,000 | 5,000 | 2,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 10,000 | 5,000 | 2,000 | ||||
Expiration period | 10 years | 10 years | 10 years | ||||
Incentive stock options | Two employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 25,000 | ||||||
Vested shares | 3,241 | 5,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 5,000 | ||||||
Expiration period | 10 years | ||||||
Incentive stock options | Five employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vested shares | 77,000 | ||||||
Expiration period | 10 years | ||||||
Restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-vested stock-based arrangements yet to be recognized | $ 313,000 | $ 313,000 | |||||
Stock based arrangements yet to be recognized, weighted average period expected to be recognized | 1 year 6 months | ||||||
Restricted stock | Five employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vested shares | 38,500 | ||||||
Restricted stock | Five employees | Vest on January 9, 2021 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights | 25.00% | ||||||
Restricted stock | Five employees | Over the next three years, commencing January 9, 2021 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years |
Concentrations of credit risk (
Concentrations of credit risk (Details) - USD ($) $ in Millions | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 |
Concentration Risk [Line Items] | ||||
Cash, FDIC insured amount | $ 13.1 | $ 13.1 | ||
Revenue from Contract with Customer Benchmark [Member] | Two distributors | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | |||
Revenue from Contract with Customer Benchmark [Member] | Wireless Carrier | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 17.00% | 14.00% | ||
Revenue from Contract with Customer Benchmark [Member] | Distributor | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 38.00% | |||
Accounts Receivable | Two distributors | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12.00% | |||
Accounts Receivable | Customer One | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 30.00% | |||
Accounts Receivable | Customer two | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 22.00% |
Segment information - Sales by
Segment information - Sales by geographic area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Revenue, Major Customer [Line Items] | ||
Sales revenue | $ 12,414 | $ 10,647 |
United States | ||
Revenue, Major Customer [Line Items] | ||
Sales revenue | 12,173 | 10,470 |
Foreign countries, total | ||
Revenue, Major Customer [Line Items] | ||
Sales revenue | 241 | 177 |
Canada | ||
Revenue, Major Customer [Line Items] | ||
Sales revenue | 116 | 165 |
Mexico | ||
Revenue, Major Customer [Line Items] | ||
Sales revenue | 5 | 0 |
All other | ||
Revenue, Major Customer [Line Items] | ||
Sales revenue | $ 120 | $ 12 |
Segment information - Net sales
Segment information - Net sales, income (loss) before provision for income taxes and other related segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Oct. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 12,414 | $ 10,647 | |
Income (loss) before provision for income taxes | 12 | 808 | |
Depreciation and amortization | 255 | 137 | |
Total assets | 39,832 | 32,507 | $ 37,700 |
RF Connector and Cable Assembly | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,189 | 3,258 | |
Income (loss) before provision for income taxes | 282 | 280 | |
Depreciation and amortization | 42 | 45 | |
Total assets | 7,496 | 6,635 | |
Custom Cabling Manufacturing and Assembly | |||
Segment Reporting Information [Line Items] | |||
Net sales | 9,225 | 7,389 | |
Income (loss) before provision for income taxes | (281) | 506 | |
Depreciation and amortization | 213 | 92 | |
Total assets | 17,158 | 11,026 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Income (loss) before provision for income taxes | 11 | 22 | |
Depreciation and amortization | 0 | 0 | |
Total assets | $ 15,178 | $ 14,846 |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Oct. 31, 2019 | |
Income tax | |||
Provision for income tax as percentage of income (loss) before income taxes | (120.00%) | 21.00% | |
Unrecognized tax benefits, inclusive of interest and penalties | $ 123,000 | $ 80,000 | |
Unrecognized tax benefits | $ 28,000 |
Intangible assets (Detail)
Intangible assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Intangible Assets [Line Items] | ||
Total | $ 3,700 | $ 1,092 |
Non-amortizable intangible assets, Trademarks | 1,174 | 657 |
Non-compete agreement (estimated life 5 years) | ||
Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 423 | 200 |
Amortizable intangible assets, Accumulated amortization | (211) | (200) |
Total | 212 | 0 |
Customer relationships (estimated lives 7 - 15 years) | ||
Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 5,058 | 2,879 |
Amortizable intangible assets, Accumulated amortization | (2,005) | (1,884) |
Total | 3,053 | 995 |
Backlog (estimated life 1 - 2 years) | ||
Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 287 | 134 |
Amortizable intangible assets, Accumulated amortization | (167) | (134) |
Total | 120 | 0 |
Patents (estimated life 10 - 14 years) | ||
Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 368 | 142 |
Amortizable intangible assets, Accumulated amortization | (53) | (45) |
Total | $ 315 | $ 97 |
Intangible assets (Parenthetica
Intangible assets (Parenthetical) (Detail) | 3 Months Ended |
Jan. 31, 2020 | |
Non-compete agreement (estimated life 5 years) | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Customer relationships (estimated lives 7 - 15 years) | Minimum | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Customer relationships (estimated lives 7 - 15 years) | Maximum | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Backlog (estimated life 1 - 2 years) | Minimum | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Backlog (estimated life 1 - 2 years) | Maximum | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Patents (estimated life 10 - 14 years) | Minimum | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Patents (estimated life 10 - 14 years) | Maximum | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 14 years |
Intangible assets - Additional
Intangible assets - Additional Information (Detail) - USD ($) | Jan. 01, 2020 | Jan. 31, 2020 | Oct. 31, 2019 |
Intangible assets | |||
Amortization expense | $ 173,000 | $ 275,000 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years 4 months 21 days |
Commitments - Operating lease e
Commitments - Operating lease expenses (Details) $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($) | |
Commitments | |
Operating lease cost | $ 254 |
Right of use assets obtained in exchange for lease obligation: operating lease | $ 2,024 |
Weighted average remaining lease term: operating lease | 30 months 15 days |
Weighted average discount rate: operating lease | 3.54% |
Commitments - Minimum lease pay
Commitments - Minimum lease payments operating lease (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Commitments | ||
2020 (excluding three months ended January 31, 2020) | $ 719 | |
2021 | 854 | |
2022 | 507 | |
2023 | 166 | |
Total future minimum lease payments | 2,246 | |
Less imputed interest | (122) | |
Total | 2,124 | |
Other current liabilities | 933 | $ 0 |
Operating Lease, Liability, Noncurrent | $ 1,191 | $ 0 |
Commitments (Details)
Commitments (Details) | Feb. 15, 2020USD ($)ft² | Feb. 01, 2020USD ($)ft²item | Jan. 01, 2020USD ($) | Sep. 01, 2019USD ($) | Mar. 15, 2019USD ($)ft² | Feb. 01, 2019USD ($)ft² | Feb. 01, 2019USD ($)ft² | Nov. 01, 2018USD ($)ft² | Jul. 25, 2017ft² | Jun. 09, 2017USD ($)ft² | Jun. 05, 2017USD ($)ft² | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) |
Commitments And Contingencies [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 83,000 | ||||||||||||
Operating lease ROU asset | 2,024,000 | $ 0 | |||||||||||
Operating lease liabilities | 2,124,000 | ||||||||||||
ASU 2016-02 | Restatement | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Operating lease ROU asset | 2,000,000 | ||||||||||||
Operating lease liabilities | 2,100,000 | ||||||||||||
Operating Lease, Liability, Current | 933,000 | ||||||||||||
Additional operating leases that have not yet commenced | $ 178,000 | ||||||||||||
Additional operating leases that have not yet commenced, lease term | 24 months | ||||||||||||
K&K Unlimited [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 1,000 | ||||||||||||
San Diego, California [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 21,908 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 26,176 | ||||||||||||
Lease Expiration Date | Jul. 31, 2022 | ||||||||||||
Milford Connecticut [Member] | Commitments [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 13,750 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 8,969 | ||||||||||||
Lease Expiration Date | Aug. 31, 2021 | Aug. 31, 2019 | |||||||||||
NEW YORK | Commitments [Member] | K&K Unlimited [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 12,000 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 13,000 | ||||||||||||
Additional Lease Expiration Date | Jun. 30, 2021 | ||||||||||||
NEW YORK | Commitments [Member] | 100 Bellport Avenue, LLC [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 7,500 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 9,375 | $ 5,625 | |||||||||||
Lease Expiration Date | Oct. 31, 2019 | ||||||||||||
NEW YORK | Commitments [Member] | Amendment | 100 Bellport Avenue, LLC [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 5,000 | 5,000 | |||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 3,750 | ||||||||||||
California | Commitments [Member] | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 24,014 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 18,491 | ||||||||||||
Lease Expiration Date | Jun. 30, 2023 | ||||||||||||
Schrofftech | Commitments [Member] | Subsequent Event | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 10,700 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 6,525 | ||||||||||||
Number of leases renewed | item | 2 | ||||||||||||
Lease Expiration Date | Jan. 31, 2022 | ||||||||||||
Maryland | Commitments [Member] | Subsequent Event | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Area of Land | ft² | 625 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 143 | ||||||||||||
Lease Expiration Date | Feb. 28, 2022 | ||||||||||||
Operating Leases, Rent Expense, Net | $ 1,016 |
Line of credit (Detail)
Line of credit (Detail) - USD ($) $ in Thousands | 1 Months Ended | |
Nov. 30, 2019 | Jan. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |
Line of Credit Oustanding | $ 0 | |
LIBOR Daily Floating Rate | ||
Line of Credit Facility [Line Items] | ||
Line of credit, interest rate (as a percent) | 2.00% |
Cash dividend and declared di_2
Cash dividend and declared dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash dividend and declared dividends | ||
Dividends paid, per share | $ 0.02 | $ 0.02 |
Dividends paid | $ 193 | $ 186 |
Subsequent events (Detail)
Subsequent events (Detail) - Subsequent Event | Mar. 05, 2020$ / shares | Feb. 15, 2020USD ($)ft² | Feb. 01, 2020USD ($)ft²item |
Subsequent Event [Line Items] | |||
Renewal term | 2 years | ||
Dividends Payable, Amount Per Share | $ / shares | $ 0.02 | ||
Dividends payable, record date | Mar. 31, 2020 | ||
Schrofftech | Commitments [Member] | |||
Subsequent Event [Line Items] | |||
Lease Expiration Date | Jan. 31, 2022 | ||
Number of leases renewed | item | 2 | ||
Monthly rental payments | $ 6,525 | ||
Area of office facility | ft² | 10,700 | ||
Maryland | Commitments [Member] | |||
Subsequent Event [Line Items] | |||
Lease Expiration Date | Feb. 28, 2022 | ||
Monthly rental payments | $ 1,016 | ||
Area of office facility | ft² | 625 | ||
Estimated monthly payments for common area maintenance fees | $ 143 |