Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Dec. 28, 2020 | Apr. 30, 2020 | |
Document Information [Line Items] | |||
Entity Registrant Name | R F INDUSTRIES LTD | ||
Entity Central Index Key | 0000740664 | ||
Trading Symbol | rfil | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 9,848,246 | ||
Entity Public Float | $ 49.4 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 15,797 | $ 12,540 |
Trade accounts receivable, net of allowance for doubtful accounts of $66 and $23, respectively | 5,669 | 12,190 |
Inventories | 8,586 | 8,245 |
Other current assets | 813 | 685 |
TOTAL CURRENT ASSETS | 30,865 | 33,660 |
Property and equipment: | ||
Equipment and tooling | 3,819 | 3,602 |
Furniture and office equipment | 1,073 | 998 |
Property, Plant and Equipment, Gross, Ending Balance | 4,892 | 4,600 |
Less accumulated depreciation | 4,082 | 3,761 |
Total property and equipment | 810 | 839 |
Operating lease right of use assets, net | 1,421 | |
Goodwill | 2,467 | 1,340 |
Amortizable intangible assets, net | 3,181 | 1,092 |
Non-amortizable intangible assets | 1,174 | 657 |
Deferred tax assets | 834 | 44 |
Other assets | 70 | 68 |
TOTAL ASSETS | 40,822 | 37,700 |
CURRENT LIABILITIES | ||
Accounts payable | 1,475 | 2,406 |
Accrued expenses | 2,573 | 3,653 |
Current portion of PPP Loan | 1,699 | |
Income taxes payable | 43 | 21 |
Other current liabilities | 874 | |
TOTAL CURRENT LIABILITIES | 6,664 | 6,080 |
Operating lease liabilities | 635 | |
PPP Loan | 1,089 | |
Other long-term liabilities | 370 | 87 |
TOTAL LIABILITIES | 8,758 | 6,167 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock - authorized 21,250,000 and 20,000,000 shares of $0.01 par value; 9,814,118 and 9,462,267 shares issued and outstanding at October 31, 2020 and October 31, 2019, respectively | 98 | 95 |
Additional paid-in capital | 22,946 | 21,949 |
Retained earnings | 9,020 | 9,489 |
TOTAL STOCKHOLDERS' EQUITY | 32,064 | 31,533 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 40,822 | $ 37,700 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Trade accounts receivable, allowance for doubtful accounts | $ 66 | $ 23 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 21,250,000 | 20,000,000 |
Common stock, shares issued (in shares) | 9,814,118 | 9,462,267 |
Common stock, shares outstanding (in shares) | 9,814,118 | 9,462,267 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Net sales | $ 43,044,000 | $ 55,325,000 |
Cost of sales | 31,478,000 | 39,688,000 |
Gross profit | 11,566,000 | 15,637,000 |
Operating expenses: | ||
Engineering | 1,989,000 | 1,468,000 |
Selling and general | 9,980,000 | 9,710,000 |
Total operating expense | 11,969,000 | 11,178,000 |
Operating (loss) income | (403,000) | 4,459,000 |
Other (loss) income | (45,000) | 98,000 |
(Loss) income before (benefit) provision for income taxes | (448,000) | 4,557,000 |
(Benefit) provision for income taxes | (367,000) | 1,036,000 |
Consolidated net (loss) income | $ (81,000) | $ 3,521,000 |
(Loss) earnings per share | ||
Basic (in dollars per share) | $ (0.01) | $ 0.38 |
Diluted (in dollars per share) | $ (0.01) | $ 0.36 |
Weighted average shares outstanding | ||
Basic (in shares) | 9,678,822 | 9,358,836 |
Diluted (in shares) | 9,678,822 | 9,854,604 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Oct. 31, 2018 | 9,291,201 | |||
Balance at Oct. 31, 2018 | $ 93 | $ 20,974 | $ 6,716 | $ 27,783 |
Exercise of stock options (in shares) | 171,066 | 171,066 | ||
Exercise of stock options | $ 2 | 658 | $ 660 | |
Stock-based compensation expense | 317 | 317 | ||
Dividends | (748) | (748) | ||
Consolidated net income (A) | 3,521 | 3,521 | ||
Balance (in shares) at Oct. 31, 2019 | 9,462,267 | |||
Balance at Oct. 31, 2019 | $ 95 | 21,949 | 9,489 | $ 31,533 |
Exercise of stock options (in shares) | 241,209 | 241,209 | ||
Exercise of stock options | $ 2 | 443 | $ 445 | |
Stock-based compensation expense | 473 | 473 | ||
Dividends | (388) | (388) | ||
Consolidated net income (A) | (81) | (81) | ||
Issuance of restricted stock (in shares) | 97,451 | |||
Issuance of restricted stock | $ 1 | (1) | ||
Issuance of common shares (in shares) | 13,191 | |||
Issuance of common shares | 82 | 82 | ||
Balance (in shares) at Oct. 31, 2020 | 9,814,118 | |||
Balance at Oct. 31, 2020 | $ 98 | $ 22,946 | $ 9,020 | $ 32,064 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
OPERATING ACTIVITIES: | ||
Consolidated net (loss) income | $ (81,000) | $ 3,521,000 |
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities: | ||
Bad debt expense | 16,000 | 21,000 |
Depreciation and amortization | 1,014,000 | 563,000 |
Share-based Payment Arrangement, Noncash Expense, Total | 556,000 | 317,000 |
Deferred income taxes | (790,000) | (43,000) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 6,775,000 | (6,640,000) |
Inventories | 442,000 | (657,000) |
Other current assets | (113,000) | 218,000 |
Right of use asset | 88,000 | |
Other long-term assets | (2,000) | (1,000) |
Accounts payable | (1,040,000) | 106,000 |
Accrued expenses | (1,374,000) | (211,000) |
Income tax payable | 22,000 | 21,000 |
Other long-term liabilities | (966,000) | 75,000 |
Net cash provided by (used in) operating activities | 4,547,000 | (2,710,000) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (235,000) | (538,000) |
Net cash used in investing activities | (4,136,000) | (996,000) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 445,000 | 660,000 |
Dividends paid | (388,000) | (748,000) |
Proceeds from PPP Loan | 2,789,000 | |
Net cash provided by (used in) financing activities | 2,846,000 | (88,000) |
Net increase (decrease) in cash and cash equivalents | 3,257,000 | (3,794,000) |
Cash and cash equivalents, beginning of year | 12,540,000 | 16,334,000 |
Cash and cash equivalents, end of year | 15,797,000 | 12,540,000 |
Supplemental cash flow information – income taxes paid | 415,000 | 739,000 |
C Enterprises [Member] | ||
INVESTING ACTIVITIES: | ||
Purchase of company, net of cash acquired | (458,000) | |
Schrofftech [Member] | ||
INVESTING ACTIVITIES: | ||
Purchase of company, net of cash acquired | $ (3,901,000) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
C Enterprises [Member] | ||
Purchase of company, cash acquired | $ 143 | |
Schrofftech [Member] | ||
Purchase of company, cash acquired | $ 99 |
Note 1 - Business Activities an
Note 1 - Business Activities and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1 – Business activities and summary of significant accounting policies Business activities RF Industries, Ltd., together with its four October 31, 2020, five Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results may Principles of consolidation The accompanying consolidated financial statements include the accounts of RF Industries, Ltd., Cables Unlimited, Inc. (“Cables Unlimited”), Rel-Tech Electronics, Inc. (“Rel-Tech”), C Enterprises, Inc. (“C Enterprises”), and Schroff Technologies International, Ltd. (“Schrofftech”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation. Cash equivalents The Company considers all highly-liquid investments with an original maturity of three Revenue recognition On November 1, 2018, No. 2014 09, 606 606” 606 606, five 1 2 3 4 5 no Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined using the weighted average cost of accounting. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value due to damage, physical deterioration, obsolescence, changes in price levels, or other causes, we reduce our inventory to a new cost basis through a charge to cost of sales in the period in which it occurs. The determination of market value and the estimated volume of demand used in the lower of cost or market analysis requires significant judgment. Property and equipment Equipment, tooling and furniture are recorded at cost and depreciated over their estimated useful lives (generally three five Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill is not October, We assess whether a goodwill impairment exists using both qualitative and quantitative assessments at the reporting level. Our qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not not not not If the qualitative assessment indicates that it is more likely than not not two first 1” second 2” No October 31, 2020 2019. 19 October 31, 2020 October 31, 2020. no On June 15, 2011, May 19, 2015, June 1, 2015, March 15, 2019, no November 4, 2019, Long-lived assets We assess property, plant and equipment and intangible assets, which are considered definite-lived assets for impairment. Definite-lived assets are reviewed when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not no We amortize our intangible assets with definite useful lives over their estimated useful lives and review these assets for impairment. In addition, we test our trademarks and indefinite-lived asset for impairment at least annually or more frequently if events or changes in circumstances indicate that these assets may No October 31, 2020 2019. 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 Level 1— Level 2— not Level 3— one As of October 31, 2020 2019, Intangible assets Intangible assets consist of the following as of October 31, 2020 2019 2020 2019 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 200 Accumulated amortization (245 ) (200 ) 178 - Customer relationships (estimated lives 7 - 15 years) 5,058 2,879 Accumulated amortization (2,367 ) (1,884 ) 2,691 995 Backlog (estimated life 1 - 2 years) 287 134 Accumulated amortization (266 ) (134 ) 21 - Patents (estimated life 14 years) 368 142 Accumulated amortization (77 ) (45 ) 291 97 Totals $ 3,181 $ 1,092 Non-amortizable intangible assets: Trademarks $ 1,174 $ 657 Amortization expense was $692,000 $275,000 October 31, 2020 2019. 8.39 There was no October 31, 2020 2019. Estimated amortization expense related to finite lived intangible assets is as follows (in thousands): Year ending October 31, Amount 2021 $ 443 2022 374 2023 364 2024 364 2025 320 Thereafter 1,316 Total $ 3,181 Advertising We expense the cost of advertising and promotions as incurred. Advertising costs charged to operations were approximately $295,000 $422,000 2020 2019, Research and development Research and development costs are expensed as incurred. Our research and development expenses relate to its engineering activities, which consist of the design and development of new products for specific customers, as well as the design and engineering of new or redesigned products for the industry in general. During the years ended October 31, 2020 2019, $1,989,000 $1,468,000 Income taxes We account for income taxes under the asset and liability method, based on the income tax laws and rates in the jurisdictions in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Developing the provision (benefit) for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may We had adopted the provisions of ASC 740 10, 740 10 not not 8 Stock options For stock option grants to employees, we recognize compensation expense based on the estimated fair value of the options at the date of grant. Stock-based employee compensation expense is recognized on a straight-line basis over the requisite service period. We issue previously unissued common shares upon the exercise of stock options. For the fiscal years ended October 31, 2020 2019, $556,000 $317,000, October 31, 2020 2019, Earnings per share Basic earnings per share is calculated by dividing net income applicable to common stockholders by the weighted average number of common shares outstanding during the period. The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally those issuable upon the exercise of stock options, were issued and the treasury stock method had been applied during the period. The greatest number of shares potentially issuable upon the exercise of stock options in any period for the years ended October 31, 2020 2019, not 402,838 124,097, The following table summarizes the computation of basic and diluted earnings per share: 2020 2019 Numerators: Consolidated net income (A) $ (81,000 ) $ 3,521,000 Denominators: Weighted average shares outstanding for basic earnings per share (B) 9,678,822 9,358,836 Add effects of potentially dilutive securities - assumed exercise of stock options - 495,768 Weighted average shares outstanding for diluted earnings per share (C) 9,678,822 9,854,604 Basic earnings per share (A)/(B) $ (0.01 ) $ 0.38 Diluted earnings per share (A)/(C) $ (0.01 ) $ 0.36 Recent accounting standards Recently issued accounting pronouncements not In January 2017, No. 2017 04, 2 December 15, 2019. not In June 2016, 2016 13, December 15, 2019. Recently issued accounting pronouncements adopted: In May 2014, 606. 605, August 2015, 2015 14, 2014 09, December 15, 2017. not December 15, 2016 ( 2014 09 March 2016, 2016 08, April 2016, 2016 10, November 1, 2018, 606 606 not no In February 2016, No. 2016 02, 2016 02, November 1, 2019, 2020, 12 $2.3 $2.4 November 1, 2019, not |
Note 2 - Business Acquisition
Note 2 - Business Acquisition | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2 C Enterprises, Inc. On March 15, 2019, $600,000 not 805, no The results of C Enterprises' operations subsequent to March 15, 2019 $100,000 2019 October 31, 2020, $10.9 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, $4 two $2.4 The acquisition was accounted for as an acquisition of a business in accordance with the acquisition method of accounting. The acquired assets and assumed liabilities have been recorded at their estimated fair values. We determined the estimated fair values with the assistance of appraisals or valuations performed by an independent third Although the closing occurred on November 4, 2019, November 1, 2019. $151,000, $108,000 2019 $43,000 2020. October 31, 2020, $4.3 The following table summarizes the components of the purchase price at fair values at November 1, 2019: Cash consideration paid $ 4,000,000 Earn-out liability 1,249,000 Total purchase price $ 5,249,000 The following table summarizes the allocation of the purchase price at fair value at November 1, 2019: Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,127,000 Non-interest bearing liabilities (403,000 ) 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 not Unaudited pro forma financial information assuming the acquisition of C Enterprises and Schrofftech as of November 1, 2018 Fiscal Year Ended October 31, 2019 Revenue $ 67,096 Net income 4,815 Earnings per share Basic $ 0.51 Diluted $ 0.49 Weighted average shares outstanding Basic 9,358,836 Diluted 9,854,604 |
Note 3 - Concentrations of Cred
Note 3 - Concentrations of Credit Risk | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 3 – Concentrations of credit risk Financial instruments which 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 October 31, 2020, $14.2 Two customers, both distributors, accounted for approximately 14% 12% October 31, 2020. two 12% October 31, 2020. October 31, 2019, one 19% 23% 56% October 31, 2019. not |
Note 4 - Inventories and Major
Note 4 - Inventories and Major Vendors | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4 – 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): 2020 2019 Raw materials and supplies $ 4,410 $ 3,576 Work in process 196 791 Finished goods 3,980 3,878 Totals $ 8,586 $ 8,245 No 10% October 31, 2020, two 13% 19% October 31, 2019. |
Note 5 - Other Current Assets
Note 5 - Other Current Assets | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | Note 5 – Other current assets Other current assets consist of the following (in thousands): 2020 2019 Prepaid expense $ 393 $ 346 Other 420 339 Totals $ 813 $ 685 |
Note 6 - Accrued Expenses and O
Note 6 - Accrued Expenses and Other Long-term Liabilities | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | Note 6 – Accrued expenses and other long-term liabilities Accrued expenses consist of the following (in thousands): 2020 2019 Wages payable $ 1,506 $ 1,591 Accrued receipts 518 1,683 Other current liabilities 549 379 Totals $ 2,573 $ 3,653 Accrued receipts represent purchased inventory for which invoices have not The purchase agreement for the Schrofftech acquisition provides for earn-out payments of up to $2,400,000, October 31, 2021. October 31, 2020, October 31, 2020. 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 The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2020 ( Description Level 3 Earn-out liability $ 370 no October 31, 2019. The following table summarizes the changes to the Level 3 three October 31, 2020, July 31, 2020, April 30, 2020, January 31, 2020 ( Level 3 October 31, 2020 July 31, 2020 April 30, 2020 January 31, 2020 October 31, 2019 Beginning balance $ 558 $ 869 $ 1,215 $ 1,249 $ - Change in value (188 ) (311 ) (346 ) (34 ) - Ending balance $ 370 $ 558 $ 869 $ 1,215 $ - As of October 31, 2020, $0.4 |
Note 7 - Segment Information
Note 7 - Segment Information | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 7 – Segment information We aggregate operating divisions into operating segments which have similar economic characteristics primarily in the following areas: ( 1 2 3 4 5 October 31, 2020, two During fiscal 2020, one four five 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, 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. 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 years ended October 31, 2020 2019 2020 2019 United States $ 41,633 $ 54,365 Foreign Countries: Canada 933 592 Mexico 12 109 All Other 466 259 1,411 960 Totals $ 43,044 $ 55,325 Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the years ended October 31, 2020 2019 RF Connector Custom Cabling and Manufacturing and 2020 Cable Assembly Assembly Corporate Total Net sales $ 14,554 $ 28,490 $ - $ 43,044 Income (loss) before benefit for income taxes 2,019 (2,423 ) (44 ) (448 ) Depreciation and amortization 159 855 - 1,014 Total assets 7,822 15,486 17,514 40,822 2019 Net sales $ 13,704 $ 41,621 $ - $ 55,325 Income before provision for income taxes 868 3,591 98 4,557 Depreciation and amortization 170 393 - 563 Total assets 7,081 17,282 13,337 37,700 |
Note 8 - Income Tax Provision
Note 8 - Income Tax Provision | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 8 Income tax provision The provision (benefit) for income taxes for the fiscal years ended October 31, 2020 2019 2020 2019 Current: Federal $ 279 $ 859 State 143 220 422 1,079 Deferred: Federal (593 ) (25 ) State (196 ) (18 ) (789 ) (43 ) $ (367 ) $ 1,036 Income tax at the federal statutory rate is reconciled to our actual net provision (benefit) for income taxes as follows (in thousands, except percentages): 2020 2019 % of Pretax % of Pretax Amount Income Amount Income Income taxes at federal statutory rate $ (94 ) 21.0 % $ 957 21.0 % State tax provision, net of federal tax benefit (41 ) 9.2 % 160 3.5 % Nondeductible differences: Stock options (123 ) 27.5 % 21 0.5 % Meals and entertainment 2 -0.4 % 8 0.2 % Parking disallowance 5 -1.1 % - 0.0 % R&D credits (152 ) 33.9 % (119 ) -2.6 % Foreign derived intangible income (5 ) 1.1 % - 0.0 % ASC 740-10 Liability 27 -6.0 % 21 0.5 % Penalties 11 -2.5 % - 0.0 % Other 3 -0.7 % (12 ) -0.3 % $ (367 ) 82.0 % $ 1,036 22.8 % Our total deferred tax assets and deferred tax liabilities at October 31, 2020 2019 2020 2019 Deferred Tax Assets: PPP Loan $ 706 $ - Reserves 344 172 Accrued vacation 149 97 Stock-based compensation awards 100 87 Uniform capitalization 92 64 Lease liability 381 - Other 35 55 Total deferred tax assets 1,807 475 Deferred Tax Liabilities: Amortization / intangible assets (479 ) (307 ) Change in ROU assets (359 ) - Depreciation / equipment and furnishings (135 ) (124 ) Total deferred tax liabilities (973 ) (431 ) Total net deferred tax assets (liabilities) $ 834 $ 44 On March 27, 2020, 19 not October 31, 2020. Deferred income tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We have evaluated the available evidence supporting the realization of its gross deferred tax assets, including the amount and timing of future taxable income, and has determined it is more likely than not The provision (benefit) for income taxes was $( 0.4 81.9% $1.0 22.7% 2020 2019, 2020 21% Our adjustments to uncertain tax positions in fiscal years ended October 31, 2020 2019 2020 2019 Balance, at beginning of year $ 80 $ 59 Increase for tax positions related to the current year 32 23 Increase for tax positions related to prior years - 3 Increase for interest and penalties 6 2 Statute of Limitations Expirations (11 ) (7 ) Balance, at end of year $ 107 $ 80 We had gross unrecognized tax benefits of $96,000 $72,000 October 31, 2020 2019, 2020, We recognize interest and penalties related to uncertain tax positions in income tax expense. We recognized expense of approximately $11,000 $8,000 October 31, 2020 2019, We believe that an adequate provision has been made for any adjustments that may may twelve not twelve We are subject to taxation in the United States and state jurisdictions. Our tax years for October 31, 2017 October 31, 2016 |
Note 9 - Stock Options
Note 9 - Stock Options | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 9 – Stock options Incentive and non-qualified stock option plans On July 22, 2020, 2020 “2020 September 2020, 2020 1,250,000 2020 October 31, 2020, 1,197,399 2020 Additional disclosures related to stock option plans On December 3, 2018, two 25,000 5,000 5,000 four December 3, 2018, ten December 3, 2018, one 10,000 2,000 2,000 four December 3, 2018, ten On March 8, 2019, one 25,000 5,000 5,000 four March 8, 2019, ten On January 6, 2020, one 50,000 10,000 10,000 four January 6, 2020, ten On January 9, 2020, ● Stock grants for a total of 12,075 two one $77,000; ● A total of 3,241 two ● A total of 38,500 77,000 three two four one January 9, 2021; twelve three first January 9, 2021. ten On June 29, 2020, one 10,000 2,500 2,500 three June 30, 2020, ten No 2020. The fair value of each option granted in 2020 2019 2020 2019 Weighted average volatility 52.68 % 55.42 % Expected dividends 0.63 % 0.98 % Expected term (in years) 7.0 5.9 Risk-free interest rate 1.58 % 2.86 % Weighted average fair value of options granted during the year $ 3.06 $ 3.98 Weighted average fair value of options vested during the year $ 2.38 $ 2.56 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 2019 Additional information regarding all of our outstanding stock options at October 31, 2020 2019 2020 2019 2020 2019 Shares or Weighted Shares or Weighted Price Per Average Price Per Average Share Exercise Price Share Exercise Price Outstanding at beginning of year 890,147 $ 3.62 942,366 $ 3.09 Options granted 140,241 $ 6.40 124,097 $ 8.16 Options exercised (241,209 ) $ 1.85 (171,066 ) $ 3.86 Options canceled or expired - $ - (5,250 ) $ 6.82 Options outstanding at end of year 789,179 $ 4.66 890,147 $ 3.62 Options exercisable at end of year 459,513 $ 4.48 599,981 $ 3.25 Options vested and expected to vest at end of year 788,143 $ 4.67 889,088 $ 3.63 Option price range at end of year 1.90 8.69 1.90 8.69 Aggregate intrinsic value of options exercised during year $ 975,638 $ 317,827 Weighted average remaining contractual life of options outstanding as of October 31, 2020: 4.73 Weighted average remaining contractual life of options exercisable as of October 31, 2020: 2.58 Weighted average remaining contractual life of options vested and expected to vest as of October 31, 2020: 4.72 Aggregate intrinsic value of options outstanding at October 31, 2020: $643,000 Aggregate intrinsic value of options exercisable at October 31, 2020: $387,000 Aggregate intrinsic value of options vested and expected to vest at October 31, 2020: $639,000 As of October 31, 2020, $571,000 $245,000 4.09 0.89 Non-employee directors receive $50,000 one one 2020, November 1, 2019 August 31, 2020. November 4, 2019, five 3,270 $25,000 10 August 31, 2020 20 $6.36 August 31, 2020. 2021 September 15, 2020, five 5,757 $25,000 20 $4.34 Non-employee directors who are also a chairperson of a committee of the Board receive additional compensation of $15,000 June 5, 2020, July 1, 2020 July 31, 2020, four 279 $4.47 September 15, 2020, four 3,454 $15,000 2021 $15,000 20 $4.34 |
Note 10 - Retirement Plan
Note 10 - Retirement Plan | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note 1 0 – Retirement plan We have a 401 October 31, 2020 2019, $295,000 $181,000, 3% |
Note 11 - Line of Credit and PP
Note 11 - Line of Credit and PPP Loan | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 11 Line of credit In November 2019, $5.0 2.0% first may December 1, 2021. October 31, 2020, October 31, 2020, no PPP Loan In May 2020, $2.8 not two 1%, six Future minimum loan payments as of October 31, 2020 Year ended October 31, PPP Loan 2021 $ 1,699 2022 1,089 Total future minimum payments $ 2,788 |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 1 2 – Related party transactions A portion of our operating leases are leased 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 January 2020, $1,000 October 31, 2020, $180,000 During fiscal 2020, third two October 31, 2020, $11,000 $4,000 October 31, 2020. |
Note 13 - Cash Dividend and Dec
Note 13 - Cash Dividend and Declared Dividends | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Cash Dividend and Declared Dividends [Text Block] | Note 1 3 – Cash dividend and declared dividends We paid dividends of $0.02 $388,000 $748,000 2020 2019, |
Note 14 - Commitments
Note 14 - Commitments | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 1 4 – Commitments We adopted ASU 2016 02 November 1, 2019, 840. November 1, 2019, We have operating leases for corporate offices, manufacturing facilities, and certain storage units. Our leases have remaining lease terms of one three five $14,000 We also have other operating leases for certain equipment. The components of our facilities and equipment operating lease expenses for the period ending October 31, 2020 Fiscal Year Ended October 31, 2020 Operating lease cost $ 1,001 Short-term lease cost 1 Other information related to leases was as follows (in thousands): October 31, 2020 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,421 Weighted Average Remaining Lease Term Operating leases (in months) 22.94 Weighted Average Discount Rate Operating leases 3.54 % Future minimum lease payments under non-cancellable leases as of October 31, 2020 Year ended October 31, Operating Leases 2021 $ 920 2022 532 2023 166 2024 - Thereafter - Total future minimum lease payments 1,618 Less imputed interest (109 ) Total $ 1,509 Reported as of October 31, 2020 Operating Leases Other current liabilities $ 874 Operating lease liabilities 635 Finance lease liabilities - Total $ 1,509 As of October 31, 2020, $1.4 $1.5 $874,000 no October 31, 2020. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Business Combinations Policy [Policy Text Block] | Business activities RF Industries, Ltd., together with its four October 31, 2020, five |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results may |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The accompanying consolidated financial statements include the accounts of RF Industries, Ltd., Cables Unlimited, Inc. (“Cables Unlimited”), Rel-Tech Electronics, Inc. (“Rel-Tech”), C Enterprises, Inc. (“C Enterprises”), and Schroff Technologies International, Ltd. (“Schrofftech”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash equivalents The Company considers all highly-liquid investments with an original maturity of three |
Revenue [Policy Text Block] | Revenue recognition On November 1, 2018, No. 2014 09, 606 606” 606 606, five 1 2 3 4 5 no |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined using the weighted average cost of accounting. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value due to damage, physical deterioration, obsolescence, changes in price levels, or other causes, we reduce our inventory to a new cost basis through a charge to cost of sales in the period in which it occurs. The determination of market value and the estimated volume of demand used in the lower of cost or market analysis requires significant judgment. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment Equipment, tooling and furniture are recorded at cost and depreciated over their estimated useful lives (generally three five |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill is not October, We assess whether a goodwill impairment exists using both qualitative and quantitative assessments at the reporting level. Our qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not not not not If the qualitative assessment indicates that it is more likely than not not two first 1” second 2” No October 31, 2020 2019. 19 October 31, 2020 October 31, 2020. no On June 15, 2011, May 19, 2015, June 1, 2015, March 15, 2019, no November 4, 2019, |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived assets We assess property, plant and equipment and intangible assets, which are considered definite-lived assets for impairment. Definite-lived assets are reviewed when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not no We amortize our intangible assets with definite useful lives over their estimated useful lives and review these assets for impairment. In addition, we test our trademarks and indefinite-lived asset for impairment at least annually or more frequently if events or changes in circumstances indicate that these assets may No October 31, 2020 2019. |
Fair Value Measurement, Policy [Policy Text Block] | 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 Level 1— Level 2— not Level 3— one As of October 31, 2020 2019, |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible assets Intangible assets consist of the following as of October 31, 2020 2019 2020 2019 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 200 Accumulated amortization (245 ) (200 ) 178 - Customer relationships (estimated lives 7 - 15 years) 5,058 2,879 Accumulated amortization (2,367 ) (1,884 ) 2,691 995 Backlog (estimated life 1 - 2 years) 287 134 Accumulated amortization (266 ) (134 ) 21 - Patents (estimated life 14 years) 368 142 Accumulated amortization (77 ) (45 ) 291 97 Totals $ 3,181 $ 1,092 Non-amortizable intangible assets: Trademarks $ 1,174 $ 657 Amortization expense was $692,000 $275,000 October 31, 2020 2019. 8.39 There was no October 31, 2020 2019. Estimated amortization expense related to finite lived intangible assets is as follows (in thousands): Year ending October 31, Amount 2021 $ 443 2022 374 2023 364 2024 364 2025 320 Thereafter 1,316 Total |
Advertising Cost [Policy Text Block] | Advertising We expense the cost of advertising and promotions as incurred. Advertising costs charged to operations were approximately $295,000 $422,000 2020 2019, |
Research and Development Expense, Policy [Policy Text Block] | Research and development Research and development costs are expensed as incurred. Our research and development expenses relate to its engineering activities, which consist of the design and development of new products for specific customers, as well as the design and engineering of new or redesigned products for the industry in general. During the years ended October 31, 2020 2019, $1,989,000 $1,468,000 |
Income Tax, Policy [Policy Text Block] | Income taxes We account for income taxes under the asset and liability method, based on the income tax laws and rates in the jurisdictions in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Developing the provision (benefit) for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may We had adopted the provisions of ASC 740 10, 740 10 not not 8 |
Share-based Payment Arrangement [Policy Text Block] | Stock options For stock option grants to employees, we recognize compensation expense based on the estimated fair value of the options at the date of grant. Stock-based employee compensation expense is recognized on a straight-line basis over the requisite service period. We issue previously unissued common shares upon the exercise of stock options. For the fiscal years ended October 31, 2020 2019, $556,000 $317,000, October 31, 2020 2019, |
Earnings Per Share, Policy [Policy Text Block] | Earnings per share Basic earnings per share is calculated by dividing net income applicable to common stockholders by the weighted average number of common shares outstanding during the period. The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally those issuable upon the exercise of stock options, were issued and the treasury stock method had been applied during the period. The greatest number of shares potentially issuable upon the exercise of stock options in any period for the years ended October 31, 2020 2019, not 402,838 124,097, The following table summarizes the computation of basic and diluted earnings per share: 2020 2019 Numerators: Consolidated net income (A) $ (81,000 ) $ 3,521,000 Denominators: Weighted average shares outstanding for basic earnings per share (B) 9,678,822 9,358,836 Add effects of potentially dilutive securities - assumed exercise of stock options - 495,768 Weighted average shares outstanding for diluted earnings per share (C) 9,678,822 9,854,604 Basic earnings per share (A)/(B) $ (0.01 ) $ 0.38 Diluted earnings per share (A)/(C) |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting standards Recently issued accounting pronouncements not In January 2017, No. 2017 04, 2 December 15, 2019. not In June 2016, 2016 13, December 15, 2019. Recently issued accounting pronouncements adopted: In May 2014, 606. 605, August 2015, 2015 14, 2014 09, December 15, 2017. not December 15, 2016 ( 2014 09 March 2016, 2016 08, April 2016, 2016 10, November 1, 2018, 606 606 not no In February 2016, No. 2016 02, 2016 02, November 1, 2019, 2020, 12 $2.3 $2.4 November 1, 2019, not |
Note 1 - Business Activities _2
Note 1 - Business Activities and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2020 2019 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 200 Accumulated amortization (245 ) (200 ) 178 - Customer relationships (estimated lives 7 - 15 years) 5,058 2,879 Accumulated amortization (2,367 ) (1,884 ) 2,691 995 Backlog (estimated life 1 - 2 years) 287 134 Accumulated amortization (266 ) (134 ) 21 - Patents (estimated life 14 years) 368 142 Accumulated amortization (77 ) (45 ) 291 97 Totals $ 3,181 $ 1,092 Non-amortizable intangible assets: Trademarks $ 1,174 $ 657 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending October 31, Amount 2021 $ 443 2022 374 2023 364 2024 364 2025 320 Thereafter 1,316 Total $ 3,181 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2020 2019 Numerators: Consolidated net income (A) $ (81,000 ) $ 3,521,000 Denominators: Weighted average shares outstanding for basic earnings per share (B) 9,678,822 9,358,836 Add effects of potentially dilutive securities - assumed exercise of stock options - 495,768 Weighted average shares outstanding for diluted earnings per share (C) 9,678,822 9,854,604 Basic earnings per share (A)/(B) $ (0.01 ) $ 0.38 Diluted earnings per share (A)/(C) $ (0.01 ) $ 0.36 |
Note 2 - Business Acquisition (
Note 2 - Business Acquisition (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Business Acquisition, Pro Forma Information [Table Text Block] | Fiscal Year Ended October 31, 2019 Revenue $ 67,096 Net income 4,815 Earnings per share Basic $ 0.51 Diluted $ 0.49 Weighted average shares outstanding Basic 9,358,836 Diluted 9,854,604 |
Schrofftech [Member] | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration paid $ 4,000,000 Earn-out liability 1,249,000 Total purchase price $ 5,249,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,127,000 Non-interest bearing liabilities (403,000 ) Net assets $ 5,249,000 |
C Enterprises [Member] | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration paid $ 600,000 Total purchase price $ 600,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets $ 2,008,000 Fixed assets 30,000 Other assets 18,000 Non-interest bearing liabilities (1,456,000 ) Net assets $ 600,000 |
Note 4 - Inventories and Majo_2
Note 4 - Inventories and Major Vendors (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2020 2019 Raw materials and supplies $ 4,410 $ 3,576 Work in process 196 791 Finished goods 3,980 3,878 Totals $ 8,586 $ 8,245 |
Note 5 - Other Current Assets (
Note 5 - Other Current Assets (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | 2020 2019 Prepaid expense $ 393 $ 346 Other 420 339 Totals $ 813 $ 685 |
Note 6 - Accrued Expenses and_2
Note 6 - Accrued Expenses and Other Long-term Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2020 2019 Wages payable $ 1,506 $ 1,591 Accrued receipts 518 1,683 Other current liabilities 549 379 Totals $ 2,573 $ 3,653 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Description Level 3 Earn-out liability $ 370 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Level 3 October 31, 2020 July 31, 2020 April 30, 2020 January 31, 2020 October 31, 2019 Beginning balance $ 558 $ 869 $ 1,215 $ 1,249 $ - Change in value (188 ) (311 ) (346 ) (34 ) - Ending balance $ 370 $ 558 $ 869 $ 1,215 $ - |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | 2020 2019 United States $ 41,633 $ 54,365 Foreign Countries: Canada 933 592 Mexico 12 109 All Other 466 259 1,411 960 Totals $ 43,044 $ 55,325 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | RF Connector Custom Cabling and Manufacturing and 2020 Cable Assembly Assembly Corporate Total Net sales $ 14,554 $ 28,490 $ - $ 43,044 Income (loss) before benefit for income taxes 2,019 (2,423 ) (44 ) (448 ) Depreciation and amortization 159 855 - 1,014 Total assets 7,822 15,486 17,514 40,822 2019 Net sales $ 13,704 $ 41,621 $ - $ 55,325 Income before provision for income taxes 868 3,591 98 4,557 Depreciation and amortization 170 393 - 563 Total assets 7,081 17,282 13,337 37,700 |
Note 8 - Income Tax Provision (
Note 8 - Income Tax Provision (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2020 2019 Current: Federal $ 279 $ 859 State 143 220 422 1,079 Deferred: Federal (593 ) (25 ) State (196 ) (18 ) (789 ) (43 ) $ (367 ) $ 1,036 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2020 2019 % of Pretax % of Pretax Amount Income Amount Income Income taxes at federal statutory rate $ (94 ) 21.0 % $ 957 21.0 % State tax provision, net of federal tax benefit (41 ) 9.2 % 160 3.5 % Nondeductible differences: Stock options (123 ) 27.5 % 21 0.5 % Meals and entertainment 2 -0.4 % 8 0.2 % Parking disallowance 5 -1.1 % - 0.0 % R&D credits (152 ) 33.9 % (119 ) -2.6 % Foreign derived intangible income (5 ) 1.1 % - 0.0 % ASC 740-10 Liability 27 -6.0 % 21 0.5 % Penalties 11 -2.5 % - 0.0 % Other 3 -0.7 % (12 ) -0.3 % $ (367 ) 82.0 % $ 1,036 22.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2020 2019 Deferred Tax Assets: PPP Loan $ 706 $ - Reserves 344 172 Accrued vacation 149 97 Stock-based compensation awards 100 87 Uniform capitalization 92 64 Lease liability 381 - Other 35 55 Total deferred tax assets 1,807 475 Deferred Tax Liabilities: Amortization / intangible assets (479 ) (307 ) Change in ROU assets (359 ) - Depreciation / equipment and furnishings (135 ) (124 ) Total deferred tax liabilities (973 ) (431 ) Total net deferred tax assets (liabilities) $ 834 $ 44 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2020 2019 Balance, at beginning of year $ 80 $ 59 Increase for tax positions related to the current year 32 23 Increase for tax positions related to prior years - 3 Increase for interest and penalties 6 2 Statute of Limitations Expirations (11 ) (7 ) Balance, at end of year $ 107 $ 80 |
Note 9 - Stock Options (Tables)
Note 9 - Stock Options (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2020 2019 Weighted average volatility 52.68 % 55.42 % Expected dividends 0.63 % 0.98 % Expected term (in years) 7.0 5.9 Risk-free interest rate 1.58 % 2.86 % Weighted average fair value of options granted during the year $ 3.06 $ 3.98 Weighted average fair value of options vested during the year $ 2.38 $ 2.56 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | 2020 2019 Shares or Weighted Shares or Weighted Price Per Average Price Per Average Share Exercise Price Share Exercise Price Outstanding at beginning of year 890,147 $ 3.62 942,366 $ 3.09 Options granted 140,241 $ 6.40 124,097 $ 8.16 Options exercised (241,209 ) $ 1.85 (171,066 ) $ 3.86 Options canceled or expired - $ - (5,250 ) $ 6.82 Options outstanding at end of year 789,179 $ 4.66 890,147 $ 3.62 Options exercisable at end of year 459,513 $ 4.48 599,981 $ 3.25 Options vested and expected to vest at end of year 788,143 $ 4.67 889,088 $ 3.63 Option price range at end of year 1.90 8.69 1.90 8.69 Aggregate intrinsic value of options exercised during year $ 975,638 $ 317,827 |
Note 11 - Line of Credit and _2
Note 11 - Line of Credit and PPP Loan (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year ended October 31, PPP Loan 2021 $ 1,699 2022 1,089 Total future minimum payments $ 2,788 |
Note 14 - Commitments (Tables)
Note 14 - Commitments (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Fiscal Year Ended October 31, 2020 Operating lease cost $ 1,001 Short-term lease cost 1 |
Lessee, Leases, Other Information [Table Text Block] | October 31, 2020 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,421 Weighted Average Remaining Lease Term Operating leases (in months) 22.94 Weighted Average Discount Rate Operating leases 3.54 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year ended October 31, Operating Leases 2021 $ 920 2022 532 2023 166 2024 - Thereafter - Total future minimum lease payments 1,618 Less imputed interest (109 ) Total $ 1,509 Reported as of October 31, 2020 Operating Leases Other current liabilities $ 874 Operating lease liabilities 635 Finance lease liabilities - Total $ 1,509 |
Note 1 - Business Activities _3
Note 1 - Business Activities and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Nov. 01, 2019 | |
Amortization of Intangible Assets, Total | $ 692,000 | $ 275,000 | |
Advertising Expense | 295,000 | 422,000 | |
Research and Development Expense, Total | 1,989,000 | 1,468,000 | |
Share-based Payment Arrangement, Noncash Expense, Total | $ 556,000 | $ 317,000 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 402,838 | 124,097 | |
Operating Lease, Right-of-Use Asset | $ 1,421,000 | ||
Operating Lease, Liability, Total | 1,509,000 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Right-of-Use Asset | $ 2,300,000 | ||
Operating Lease, Liability, Total | $ 2,400,000 | ||
Trademarks [Member] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||
Weighted Average [Member] | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 8 years 142 days |
Note 1 - Business Activities _4
Note 1 - Business Activities and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Amortizable intangible assets | $ 3,181 | $ 1,092 |
Trademarks | 1,174 | 657 |
Trademarks [Member] | ||
Trademarks | 1,174 | 657 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, gross | 423 | 200 |
Accumulated amortization | (245) | (200) |
Amortizable intangible assets | 178 | |
Customer Relationships [Member] | ||
Amortizable intangible assets, gross | 5,058 | 2,879 |
Accumulated amortization | (2,367) | (1,884) |
Amortizable intangible assets | 2,691 | 995 |
Order or Production Backlog [Member] | ||
Amortizable intangible assets, gross | 287 | 134 |
Accumulated amortization | (266) | (134) |
Amortizable intangible assets | 21 | |
Patents [Member] | ||
Amortizable intangible assets, gross | 368 | 142 |
Accumulated amortization | (77) | (45) |
Amortizable intangible assets | $ 291 | $ 97 |
Note 1 - Business Activities _5
Note 1 - Business Activities and Summary of Significant Accounting Policies - Intangible Assets (Details) (Parentheticals) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, estimated life (Year) | 5 years | 5 years |
Customer Relationships [Member] | Minimum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 7 years | 7 years |
Customer Relationships [Member] | Maximum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 15 years | 15 years |
Order or Production Backlog [Member] | Minimum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 1 year | 1 year |
Order or Production Backlog [Member] | Maximum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 2 years | 2 years |
Patents [Member] | ||
Amortizable intangible assets, estimated life (Year) | 14 years | 14 years |
Note 1 - Business Activities _6
Note 1 - Business Activities and Summary of Significant Accounting Policies - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
2021 | $ 443 | |
2022 | 374 | |
2023 | 364 | |
2024 | 364 | |
2025 | 320 | |
Thereafter | 1,316 | |
Total | $ 3,181 | $ 1,092 |
Note 1 - Business Activities _7
Note 1 - Business Activities and Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Consolidated net income (A) | $ (81) | $ 3,521 |
Weighted average shares outstanding for basic earnings per share (B) (in shares) | 9,678,822 | 9,358,836 |
Add effects of potentially dilutive securities - assumed exercise of stock options (in shares) | 495,768 | |
Weighted average shares outstanding for diluted earnings per share (C) (in shares) | 9,678,822 | 9,854,604 |
Basic earnings per share (A)/(B) (in dollars per share) | $ (0.01) | $ 0.38 |
Diluted earnings per share (A)/(C) (in dollars per share) | $ (0.01) | $ 0.36 |
Note 2 - Business Acquisition_2
Note 2 - Business Acquisition (Details Textual) - USD ($) | Nov. 04, 2019 | Nov. 01, 2019 | Mar. 15, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 |
C Enterprises [Member] | ||||||
Revenues, Total | $ 10,900,000 | |||||
C Enterprises [Member] | ||||||
Payments to Acquire Businesses, Gross | $ 600,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 0 | |||||
C Enterprises [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Business Combination, Acquisition Related Costs | $ 100,000 | |||||
Schrofftech [Member] | ||||||
Payments to Acquire Businesses, Gross | $ 4,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 3,299,000 | |||||
Business Combination, Contingent Consideration Arrangements, Target Period (Year) | 2 years | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 4,300,000 | |||||
Schrofftech [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Business Combination, Acquisition Related Costs | $ 43,000 | $ 108,000 | $ 151,000 |
Note 2 - Business Acquisition -
Note 2 - Business Acquisition - Components of the Purchase Price of C Enterprises, Inc. (Details) - C Enterprises [Member] | Mar. 15, 2019USD ($) |
Cash consideration paid | $ 600,000 |
Total purchase price | $ 600,000 |
Note 2 - Business Acquisition_3
Note 2 - Business Acquisition - Allocation of Estimated Purchase Price of C Enterprises, Inc. (Details) - C Enterprises [Member] | Mar. 15, 2019USD ($) |
Current assets | $ 2,008,000 |
Fixed assets | 30,000 |
Other assets | 18,000 |
Non-interest bearing liabilities | (1,456,000) |
Net assets | $ 600,000 |
Note 2 - Business Acquisition_4
Note 2 - Business Acquisition - Components of the Purchase Price of Schroff Technologies International, Inc. (Details) - Schrofftech [Member] | Nov. 01, 2019USD ($) |
Cash consideration paid | $ 4,000,000 |
Earn-out liability | 1,249,000 |
Total purchase price | $ 5,249,000 |
Note 2 - Business Acquisition_5
Note 2 - Business Acquisition - Allocation of Estimated Purchase Price of Schroff Technologies International, Inc. (Details) - USD ($) | Oct. 31, 2020 | Nov. 01, 2019 | Oct. 31, 2019 |
Goodwill | $ 2,467,000 | $ 1,340,000 | |
Schrofftech [Member] | |||
Current assets | $ 1,168,000 | ||
Fixed assets | 58,000 | ||
Intangible assets | 3,299,000 | ||
Goodwill | 1,127,000 | ||
Non-interest bearing liabilities | (403,000) | ||
Net assets | $ 5,249,000 |
Note 2 - Business Acquisition_6
Note 2 - Business Acquisition - Unaudited Pro Forma Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Oct. 31, 2019USD ($)$ / sharesshares | |
Revenue | $ | $ 67,096 |
Net income | $ | $ 4,815 |
Basic (in dollars per share) | $ / shares | $ 0.51 |
Diluted (in dollars per share) | $ / shares | $ 0.49 |
Basic (in shares) | shares | 9,358,836 |
Diluted (in shares) | shares | 9,854,604 |
Note 3 - Concentrations of Cr_2
Note 3 - Concentrations of Credit Risk (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Cash, Uninsured Amount | $ 14.2 | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Distributors One [Member] | ||
Concentration Risk, Percentage | 14.00% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Distributors Two [Member] | ||
Concentration Risk, Percentage | 12.00% | 19.00% |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Wireless Carrier One [Member] | ||
Concentration Risk, Percentage | 23.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Distributors One [Member] | ||
Concentration Risk, Percentage | 12.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Distributors Two [Member] | ||
Concentration Risk, Percentage | 12.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Wireless Carrier One [Member] | ||
Concentration Risk, Percentage | 56.00% |
Note 4 - Inventories and Majo_3
Note 4 - Inventories and Major Vendors (Details Textual) - Cost of Goods and Service Benchmark [Member] - Supplier Concentration Risk [Member] | 12 Months Ended |
Oct. 31, 2019 | |
Vendors One [Member] | |
Concentration Risk, Percentage | 13.00% |
Vendors Two [Member] | |
Concentration Risk, Percentage | 19.00% |
Note 4 - Inventories and Majo_4
Note 4 - Inventories and Major Vendors - Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Raw materials and supplies | $ 4,410 | $ 3,576 |
Work in process | 196 | 791 |
Finished goods | 3,980 | 3,878 |
Totals | $ 8,586 | $ 8,245 |
Note 5 - Other Current Assets -
Note 5 - Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Prepaid expense | $ 393 | $ 346 |
Other | 420 | 339 |
Totals | $ 813 | $ 685 |
Note 6 - Accrued Expenses and_3
Note 6 - Accrued Expenses and Other Long-term Liabilities (Details Textual) - USD ($) | Oct. 31, 2020 | Nov. 04, 2019 | Oct. 31, 2019 |
Financial Liabilities Fair Value Disclosure, Total | $ 0 | ||
Assets, Fair Value Disclosure | $ 0 | ||
Other Noncurrent Liabilities [Member] | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 400,000 | ||
Schrofftech [Member] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 |
Note 6 - Accrued Expenses and_4
Note 6 - Accrued Expenses and Other Long-term Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Wages payable | $ 1,506 | $ 1,591 |
Accrued receipts | 518 | 1,683 |
Other current liabilities | 549 | 379 |
Totals | $ 2,573 | $ 3,653 |
Note 6 - Accrued Expenses and_5
Note 6 - Accrued Expenses and Other Long-term Liabilities - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) $ in Thousands | Oct. 31, 2020USD ($) |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |
Earn-out liability | $ 370 |
Note 6 - Accrued Expenses and_6
Note 6 - Accrued Expenses and Other Long-term Liabilities - Level 3 Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Jul. 30, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | |
Beginning balance | $ 558 | $ 869 | $ 1,215 | $ 1,249 | |
Change in value | (188) | (311) | (346) | (34) | |
Ending balance | $ 370 | $ 558 | $ 869 | $ 1,215 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 12 Months Ended |
Oct. 31, 2020 | |
Number of Reportable Segments | 2 |
Note 7 - Segment Information -
Note 7 - Segment Information - Sales by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Net sales | $ 43,044 | $ 55,325 |
UNITED STATES | ||
Net sales | 41,633 | 54,365 |
CANADA | ||
Net sales | 933 | 592 |
MEXICO | ||
Net sales | 12 | 109 |
All Other Foreign Countries [Member] | ||
Net sales | 466 | 259 |
Non-US [Member] | ||
Net sales | $ 1,411 | $ 960 |
Note 7 - Segment Information _2
Note 7 - Segment Information - Net Sales, Income Before Provision for Income Taxes and Other Related Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Net sales | $ 43,044 | $ 55,325 |
Income (loss) before benefit for income taxes | (448) | 4,557 |
Depreciation and amortization | 1,014 | 563 |
Total assets | 40,822 | 37,700 |
Corporate, Non-Segment [Member] | ||
Net sales | ||
Income (loss) before benefit for income taxes | (44) | 98 |
Depreciation and amortization | ||
Total assets | 17,514 | 13,337 |
RF Connector and Cable Assembly [Member] | Operating Segments [Member] | ||
Net sales | 14,554 | 13,704 |
Income (loss) before benefit for income taxes | 2,019 | 868 |
Depreciation and amortization | 159 | 170 |
Total assets | 7,822 | 7,081 |
Custom Cabling Manufacturing and Assembly [Member] | Operating Segments [Member] | ||
Net sales | 28,490 | 41,621 |
Income (loss) before benefit for income taxes | (2,423) | 3,591 |
Depreciation and amortization | 855 | 393 |
Total assets | $ 15,486 | $ 17,282 |
Note 8 - Income Tax Provision_2
Note 8 - Income Tax Provision (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Expense (Benefit), Total | $ (367,000) | $ 1,036,000 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 81.90% | 22.70% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | |
Unrecognized Tax Benefits, Ending Balance | $ 107,000 | $ 80,000 | $ 59,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 11,000 | 8,000 | |
Domestic Tax Authority [Member] | |||
Unrecognized Tax Benefits, Ending Balance | $ 96,000 | $ 72,000 |
Note 8 - Income Tax Provision -
Note 8 - Income Tax Provision - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Federal | $ 279 | $ 859 |
State | 143 | 220 |
Current Income Tax Expense (Benefit), Total | 422 | 1,079 |
Federal | (593) | (25) |
State | (196) | (18) |
Deferred Federal, State and Local, Tax Expense (Benefit), Total | (789) | (43) |
Income Tax Expense (Benefit), Total | $ (367) | $ 1,036 |
Note 8 - Income Tax Provision_3
Note 8 - Income Tax Provision - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income taxes at federal statutory rate | $ (94) | $ 957 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
State tax provision, net of federal tax benefit | $ (41) | $ 160 |
State tax provision, net of federal tax benefit, percentage | 9.20% | 3.50% |
Stock options | $ (123) | $ 21 |
Stock options, percentage | 27.50% | 0.50% |
Meals and entertainment | $ 2 | $ 8 |
Meals and entertainment, percentage | (0.40%) | 0.20% |
Parking disallowance | $ 5 | |
Parking disallowance, percentage | (1.10%) | 0.00% |
R&D credits | $ (152) | $ (119) |
R&D credits, percentage | 33.90% | (2.60%) |
Foreign derived intangible income | $ (5) | |
Foreign derived intangible income, percentage | 1.10% | 0.00% |
ASC 740-10 Liability | $ 27 | $ 21 |
ASC 740-10 Liability, percentage | (6.00%) | 0.50% |
Penalties | $ 11 | |
Penalties, percentage | (2.50%) | 0.00% |
Other | $ 3 | $ (12) |
Other, percentage | (0.70%) | (0.30%) |
Income Tax Expense (Benefit), Total | $ (367) | $ 1,036 |
Percentage | 81.90% | 22.70% |
Note 8 - Income Tax Provision_4
Note 8 - Income Tax Provision - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
PPP Loan | $ 706 | |
Reserves | 344 | 172 |
Accrued vacation | 149 | 97 |
Stock-based compensation awards | 100 | 87 |
Uniform capitalization | 92 | 64 |
Lease liability | 381 | |
Other | 35 | 55 |
Total deferred tax assets | 1,807 | 475 |
Amortization / intangible assets | (479) | (307) |
Change in ROU assets | (359) | |
Depreciation / equipment and furnishings | (135) | (124) |
Total deferred tax liabilities | (973) | (431) |
Total net deferred tax assets (liabilities) | $ 834 | $ 44 |
Note 8 - Income Tax Provision_5
Note 8 - Income Tax Provision - Adjustments to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Balance, at beginning of year | $ 80 | $ 59 |
Increase for tax positions related to the current year | 32 | 23 |
Increase for tax positions related to prior years | 3 | |
Increase for interest and penalties | 6 | 2 |
Statute of Limitations Expirations | (11) | (7) |
Balance, at end of year | $ 107 | $ 80 |
Note 9 - Stock Options (Details
Note 9 - Stock Options (Details Textual) - USD ($) | Sep. 15, 2020 | Jul. 31, 2020 | Jun. 29, 2020 | Jan. 09, 2020 | Jan. 06, 2020 | Nov. 04, 2019 | Mar. 08, 2019 | Dec. 03, 2018 | Oct. 31, 2020 | Jul. 22, 2020 | Nov. 01, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 4 years 266 days | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term (Year) | 2 years 211 days | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term (Year) | 4 years 262 days | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 643,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 387,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 639,000 | ||||||||||
Share-based Payment Arrangement, Nonemployee [Member] | |||||||||||
Nonemployee Director, Annual Compensation | $ 50,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Per Director (in shares) | 5,757 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Value | $ 25,000 | $ 25,000 | |||||||||
Share Price, 20 Day Average (in dollars per share) | $ 4.34 | $ 6.36 | |||||||||
Incentive Stock Options [Member] | |||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 571,000 | ||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years 32 days | ||||||||||
Restricted Stock [Member] | |||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 245,000 | ||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 324 days | ||||||||||
Restricted Stock [Member] | Share-based Payment Arrangement, Nonemployee [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Per Director (in shares) | 3,270 | ||||||||||
Two Employees [Member] | Incentive Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 3,241 | 25,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 3,241 | 5,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number to Vest Each Year (in shares) | 5,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||||||||
One Employee [Member] | Incentive Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 10,000 | 50,000 | 25,000 | 10,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 2,500 | 10,000 | 5,000 | 2,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number to Vest Each Year (in shares) | 2,500 | 10,000 | 5,000 | 2,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 4 years | 4 years | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | 10 years | 10 years | 10 years | |||||||
Two Officers and One Employee [Member] | |||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 12,075 | ||||||||||
Share-based Payment Arrangement, Expense | $ 77,000 | ||||||||||
Three Officers and Two Employees [Member] | Incentive Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 77,000 | ||||||||||
Three Officers and Two Employees [Member] | Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 38,500 | ||||||||||
Three Officers and Two Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||||||||
Three Officers and Two Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting on January 9, 2021 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||
Three Officers and Two Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting Quarterly After January 9, 2021 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||||||||||
Non-employee Directors and Chairperson of Committee on Board [Member] | |||||||||||
Share Price, 20 Day Average (in dollars per share) | $ 4.34 | ||||||||||
Annual Payable, Additional Compensation | $ 15,000 | ||||||||||
Stock Issued During Period, Shares, Per Person, Issued For Services (in shares) | 279 | ||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ 4.47 | ||||||||||
Annual Payable, Shares, Additional Compensation | $ 15,000 | ||||||||||
Non-employee Directors and Chairperson of Committee on Board [Member] | Restricted Stock [Member] | |||||||||||
Stock Issued During Period, Shares, Per Person, Issued For Services (in shares) | 3,454 | ||||||||||
The 2020 Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,250,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,197,399 |
Note 9 - Stock Options - Assump
Note 9 - Stock Options - Assumptions (Details) - $ / shares | 12 Months Ended | |
Oct. 31, 2020 | Oct. 30, 2019 | |
Weighted average volatility | 52.68% | 55.42% |
Expected dividends | 0.63% | 0.98% |
Expected term (in years) (Year) | 7 years | 5 years 328 days |
Risk-free interest rate | 1.58% | 2.86% |
Weighted average fair value of options granted during the year (in dollars per share) | $ 3.06 | $ 3.98 |
Weighted average fair value of options vested during the year (in dollars per share) | $ 2.38 | $ 2.56 |
Note 9 - Stock Options - Option
Note 9 - Stock Options - Options Outstanding (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Outstanding at beginning of year (in shares) | 890,147 | 942,366 |
Outstanding at beginning of year, weighted average exercise price (in dollars per share) | $ 3.62 | $ 3.09 |
Options granted (in shares) | 140,241 | 124,097 |
Options granted, weighted average exercise price (in dollars per share) | $ 6.40 | $ 8.16 |
Options exercised (in shares) | (241,209) | (171,066) |
Options exercised, weighted average exercise price (in dollars per share) | $ 1.85 | $ 3.86 |
Options canceled or expired (in shares) | (5,250) | |
Options canceled or expired, weighted average exercise price (in dollars per share) | $ 6.82 | |
Options outstanding at end of year (in shares) | 789,179 | 890,147 |
Options outstanding at end of year, weighted average exercise price (in dollars per share) | $ 4.66 | $ 3.62 |
Options exercisable at end of year (in shares) | 459,513 | 599,981 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.48 | $ 3.25 |
Options vested and expected to vest at end of year (in shares) | 788,143 | 889,088 |
Options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 4.67 | $ 3.63 |
Option price range at end of year, lower limit (in dollars per share) | 1.90 | 1.90 |
Option price range at end of year, upper limit (in dollars per share) | $ 8.69 | $ 8.69 |
Aggregate intrinsic value of options exercised during year | $ 975,638 | $ 317,827 |
Note 10 - Retirement Plan (Deta
Note 10 - Retirement Plan (Details Textual) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Defined Contribution Plan, Cost | $ 295,000 | $ 181,000 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% |
Note 11 - Line of Credit and _3
Note 11 - Line of Credit and PPP Loan (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2020 | Nov. 30, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Proceeds from Issuance of Long-term Debt, Total | $ 2,789 | |||
Paycheck Protection Program CARES Act [Member] | ||||
Proceeds from Issuance of Long-term Debt, Total | $ 2,800 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |||
Long-term Line of Credit, Total | $ 0 | |||
Revolving Credit Facility [Member] | LIBOR Daily Floating Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Note 11 - Line of Credit and _4
Note 11 - Line of Credit and PPP Loan - Future Minimum Loan Payments (Details) - Paycheck Protection Program CARES Act [Member] $ in Thousands | Oct. 31, 2020USD ($) |
2021 | $ 1,699 |
2022 | 1,089 |
Total future minimum payments | $ 2,788 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Jan. 31, 2020 | Jan. 01, 2020 | |
K and K Unlimited [Member] | |||
Lessee, Operating Lease, Monthly Rent | $ 14,000 | $ 13,000 | |
Operating Lease, Expense | 180,000 | ||
K and K Unlimited [Member] | Storage Units [Member] | |||
Lessee, Operating Lease, Monthly Rent | $ 1,000 | ||
Elmec [Member] | |||
Accrued Royalties, Current | 4,000 | ||
Elmec [Member] | Royalty Payments [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 11,000 |
Note 13 - Cash Dividend and D_2
Note 13 - Cash Dividend and Declared Dividends (Details Textual) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.02 | $ 0.02 |
Payments of Ordinary Dividends, Common Stock | $ 388,000 | $ 748,000 |
Note 14 - Commitments (Details
Note 14 - Commitments (Details Textual) - USD ($) | Oct. 31, 2020 | Jan. 01, 2020 | Oct. 31, 2019 |
Lessee, Operating Lease, Renewal Term (Year) | 5 years | ||
Operating Lease, Right-of-Use Asset | $ 1,421,000 | ||
Operating Lease, Liability, Total | 1,509,000 | ||
Other Current Liabilities [Member] | |||
Operating Lease, Liability, Current | 874,000 | ||
K and K Unlimited [Member] | |||
Lessee, Operating Lease, Monthly Rent | $ 14,000 | $ 13,000 | |
Minimum [Member] | |||
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year | ||
Maximum [Member] | |||
Lessee, Operating Lease, Remaining Lease Term (Year) | 3 years |
Note 14 - Commitments - Operati
Note 14 - Commitments - Operating Lease Expense (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Operating lease cost | $ 1,001 |
Short-term lease cost | $ 1 |
Note 14 - Commitments - Other I
Note 14 - Commitments - Other Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Right of use assets obtained in exchange for lease obligations operating leases | $ 1,421 |
Weighted Average Remaining Lease Term, Operating leases (months) (Month) | 1 year 328 days |
Weighted Average Discount Rate, Operating leases | 3.54% |
Note 14 - Commitments - Future
Note 14 - Commitments - Future Minimum Lease Payments (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
2021 | $ 920,000 | |
2022 | 532,000 | |
2023 | 166,000 | |
2024 | ||
Thereafter | ||
Total future minimum lease payments | 1,618,000 | |
Less imputed interest | (109,000) | |
Total | 1,509,000 | |
Operating lease liabilities | 635,000 | |
Finance lease liabilities | ||
Total | 1,509,000 | |
Other Current Liabilities [Member] | ||
Other current liabilities | $ 874,000 |