Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jul. 31, 2022 | Sep. 02, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000740664 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-13301 | |
Entity Registrant Name | R F INDUSTRIES LTD | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 88-0168936 | |
Entity Address, Address Line One | 7610 Miramar Road, Building 6000 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92126 | |
City Area Code | 858 | |
Local Phone Number | 549-6340 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | RFIL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,156,191 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 5,086 | $ 13,053 |
Trade accounts receivable, net of allowance for doubtful accounts of $124 and $87, respectively | 16,161 | 13,523 |
Inventories | 19,161 | 11,179 |
Other current assets | 6,647 | 2,893 |
TOTAL CURRENT ASSETS | 47,055 | 40,648 |
Property and equipment: | ||
Equipment and tooling | 4,353 | 3,986 |
Furniture and office equipment | 1,347 | 1,086 |
Property, Plant and Equipment, Gross, Ending Balance | 5,700 | 5,072 |
Less accumulated depreciation | 4,669 | 4,364 |
Total property and equipment, net | 1,031 | 708 |
Operating lease right of use assets, net | 13,967 | 1,453 |
Goodwill | 7,682 | 2,467 |
Amortizable intangible assets, net | 15,728 | 2,739 |
Non-amortizable intangible assets | 1,174 | 1,174 |
Deferred tax assets | 263 | 389 |
Other assets | 295 | 70 |
TOTAL ASSETS | 87,195 | 49,648 |
CURRENT LIABILITIES | ||
Accounts payable | 6,050 | 3,504 |
Accrued expenses | 6,913 | 5,034 |
Current portion of operating lease liabilities | 1,576 | 832 |
TOTAL CURRENT LIABILITIES | 16,963 | 9,370 |
Operating lease liabilities | 15,263 | 675 |
TOTAL LIABILITIES | 45,966 | 10,045 |
STOCKHOLDERS' EQUITY | ||
Common stock - authorized 20,000,000 shares of $0.01 par value; 10,156,191 and 10,058,571 shares issued and outstanding at July 31, 2022 and October 31, 2021, respectively | 102 | 101 |
Additional paid-in capital | 24,929 | 24,301 |
Retained earnings | 16,198 | 15,201 |
TOTAL STOCKHOLDERS' EQUITY | 41,229 | 39,603 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 87,195 | 49,648 |
Term Loan [Member] | ||
CURRENT LIABILITIES | ||
Current portion of Term Loan | 2,424 | 0 |
Term Loan, net of debt issuance cost | $ 13,740 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Trade accounts receivable, allowance for doubtful accounts | $ 124 | $ 87 |
Common Stock, Shares Authorized (in shares) | 20,000,000 | 20,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued (in shares) | 10,156,191 | 10,058,571 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 10,156,191 | 10,058,571 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net sales | $ 23,842,000 | $ 15,257,000 | $ 62,265,000 | $ 36,316,000 |
Cost of sales | 16,594,000 | 10,198,000 | 44,853,000 | 23,881,000 |
Gross profit | 7,248,000 | 5,059,000 | 17,412,000 | 12,435,000 |
Operating expenses: | ||||
Engineering | 791,000 | 411,000 | 2,101,000 | 1,044,000 |
Selling and general | 5,369,000 | 3,452,000 | 13,838,000 | 8,099,000 |
Total operating expenses | 6,160,000 | 3,863,000 | 15,939,000 | 9,143,000 |
Operating income | 1,088,000 | 1,196,000 | 1,473,000 | 3,292,000 |
Other (expense) income | (177,000) | 2,000 | (280,000) | 2,803,000 |
Income before provision for income taxes | 911,000 | 1,198,000 | 1,193,000 | 6,095,000 |
Provision for income taxes | 140,000 | 272,000 | 196,000 | 727,000 |
Consolidated net income | $ 771,000 | $ 926,000 | $ 997,000 | $ 5,368,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.08 | $ 0.09 | $ 0.10 | $ 0.54 |
Diluted (in dollars per share) | $ 0.08 | $ 0.09 | $ 0.10 | $ 0.53 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 10,127,244 | 9,979,578 | 10,100,767 | 9,955,193 |
Diluted (in shares) | 10,238,932 | 10,150,396 | 10,233,209 | 10,131,172 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Oct. 31, 2020 | 9,814,118 | |||
Balance at Oct. 31, 2020 | $ 98 | $ 22,946 | $ 9,020 | $ 32,064 |
Exercise of stock options (in shares) | 180,528 | |||
Exercise of stock options | $ 1 | 566 | 0 | 567 |
Stock-based compensation expense | 634 | 634 | ||
Tax withholding related to vesting of restricted stock (in shares) | (2,540) | |||
Tax withholding related to vesting of restricted stock | (13) | 0 | (13) | |
Consolidated net income | 5,368 | 5,368 | ||
Issuance of restricted stock (in shares) | 38,674 | |||
Issuance of restricted stock | $ 1 | (1) | 0 | 0 |
Forfeiture of restricted stock (in shares) | (5,182) | |||
Shares (in shares) at Jul. 31, 2021 | 10,025,598 | |||
Balance at Jul. 31, 2021 | $ 100 | 24,132 | 14,388 | 38,620 |
Balance (in shares) at Apr. 30, 2021 | 10,001,056 | |||
Balance at Apr. 30, 2021 | $ 100 | 23,678 | 13,462 | 37,240 |
Exercise of stock options (in shares) | 23,827 | |||
Exercise of stock options | $ 0 | 82 | 0 | 82 |
Stock-based compensation expense | 374 | 374 | ||
Tax withholding related to vesting of restricted stock (in shares) | (261) | |||
Tax withholding related to vesting of restricted stock | $ 0 | (2) | 0 | (2) |
Consolidated net income | $ 0 | 0 | 926 | 926 |
Issuance of restricted stock (in shares) | 1,840 | |||
Forfeiture of restricted stock (in shares) | (864) | |||
Forfeiture of restricted stock | 0 | 0 | 0 | |
Shares (in shares) at Jul. 31, 2021 | 10,025,598 | |||
Balance at Jul. 31, 2021 | $ 100 | 24,132 | 14,388 | 38,620 |
Balance (in shares) at Oct. 31, 2021 | 10,058,571 | |||
Balance at Oct. 31, 2021 | $ 101 | 24,301 | 15,201 | $ 39,603 |
Exercise of stock options (in shares) | 60,854 | 60,854 | ||
Exercise of stock options | $ 1 | 149 | $ 150 | |
Stock-based compensation expense | 498 | 498 | ||
Tax withholding related to vesting of restricted stock (in shares) | (2,900) | |||
Tax withholding related to vesting of restricted stock | (19) | (19) | ||
Consolidated net income | 997 | 997 | ||
Issuance of restricted stock (in shares) | 39,666 | |||
Issuance of restricted stock | $ 0 | 0 | ||
Shares (in shares) at Jul. 31, 2022 | 10,156,191 | |||
Balance at Jul. 31, 2022 | $ 102 | 24,929 | 16,198 | 41,229 |
Balance (in shares) at Apr. 30, 2022 | 10,118,685 | |||
Balance at Apr. 30, 2022 | $ 102 | 24,648 | 15,427 | 40,177 |
Exercise of stock options (in shares) | 37,927 | |||
Exercise of stock options | $ 0 | 93 | 0 | 93 |
Stock-based compensation expense | 191 | 0 | 191 | |
Tax withholding related to vesting of restricted stock (in shares) | (421) | |||
Tax withholding related to vesting of restricted stock | (3) | 0 | (3) | |
Consolidated net income | 771 | 771 | ||
Shares (in shares) at Jul. 31, 2022 | 10,156,191 | |||
Balance at Jul. 31, 2022 | $ 102 | $ 24,929 | $ 16,198 | $ 41,229 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
OPERATING ACTIVITIES: | ||
Consolidated net income | $ 997 | $ 5,368 |
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities: | ||
Bad debt expense | 13 | 17 |
Depreciation and amortization | 1,155 | 592 |
Stock-based compensation expense | 498 | 634 |
Amortization of debt issuance cost | 4 | 0 |
Tax payments related to shares cancelled for vested restricted stock awards | (19) | (13) |
Changes in operating assets and liabilities: | ||
Deferred income taxes | 126 | 924 |
PPP Loan and interest forgiveness | 0 | (2,807) |
Trade accounts receivable | 229 | (4,874) |
Inventories | (3,980) | (1,814) |
Other current assets | (1,006) | (3,311) |
Right of use assets | 78 | (24) |
Other long-term assets | (224) | 0 |
Accounts payable | 1,464 | 986 |
Accrued expenses | 1,261 | 1,143 |
Income taxes payable | 0 | (43) |
Other long-term liabilities | 0 | (370) |
Net cash provided by (used in) operating activities | 596 | (3,592) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (430) | (194) |
Purchase of company, net of cash acquired | (24,442) | 0 |
Net cash used in investing activities | (24,872) | (194) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 149 | 567 |
Debt issuance cost | (32) | 0 |
Term Loan payments | (808) | |
Net cash provided by financing activities | 16,309 | 567 |
Net decrease in cash and cash equivalents | (7,967) | (3,219) |
Cash and cash equivalents, beginning of period | 13,053 | 15,797 |
Cash and cash equivalents, end of period | 5,086 | 12,578 |
Supplemental cash flow information – income taxes paid | 223 | 309 |
Term Loan [Member] | ||
FINANCING ACTIVITIES: | ||
Term Loan payments | 0 | |
Term Loan | $ 17,000 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited)-parentheticals (Parentheticals) $ in Thousands | 9 Months Ended |
Jul. 31, 2022 USD ($) | |
Cash Acquired from Acquisition | $ 33 |
Note 1 - Unaudited Interim Cond
Note 1 - Unaudited Interim Condensed Consolidated Financial Statements | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 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 (“GAAP”) 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 GAAP 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, 2021 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, 2021 included in our Annual Report on Form 10-K (“Form 10-K”) for the year ended October 31, 2021 that was previously filed with the Securities and Exchange Commission (“SEC”). Operating results for the nine months ended July 31, 2022 are not necessarily indicative of the results that may be expected for the year ending October 31, 2022. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Form 10-K. Principles of consolidation The accompanying unaudited condensed consolidated financial statements for the periods ended on or before January 31, 2022 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”). The unaudited condensed consolidated financial statements for the three and nine months ended July 31, 2022 include the accounts of RF Industries, Ltd. and our five wholly-owned subsidiaries: Cables Unlimited, Inc. (“Cables Unlimited”), Rel-Tech Electronics, Inc. (“Rel-Tech”), C Enterprises, Inc. (“C Enterprises”), Schroff Technologies International, Inc. (“Schrofftech”), and Microlab/FXR LLC (“Microlab”). Microlab is a wholly-owned subsidiary that RF Industries, Ltd. acquired on March 1, 2022. For periods on or before January 31, 2022, references herein to the “Company” shall refer to RF Industries, Ltd., Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech and for all periods after January 31, 2022, reference to the “Company” shall refer to RF Industries, Ltd., Cables Unlimited, Rel-Tech, C Enterprises, Schrofftech and Microlab. All intercompany balances and transactions have been eliminated in consolidation. Risks and uncertainties In March 2020, the World Health Organization (the “WHO”) declared coronavirus (“COVID-19”) a pandemic emergency. The COVID-19 pandemic has negatively impacted regional and global economies, disrupted global supply chains, and created significant volatility and disruption of financial markets. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by domestic and international jurisdictions to prevent disease spread, all of which are uncertain and cannot be predicted. During the periods covered by this report, the operations at all locations were affected intermittently as some of our employee schedules were impacted, and as certain customers scaled back operations or otherwise delayed or deferred orders for our products. Because of the impact that COVID-19 had on our operations, in May 2020 we applied for and received loans under the Paycheck Protection Program (“PPP”) of the the Coronavirus Aid, Relief, and Economic Security Act, H.R. 748 (“CARES Act”) totaling approximately $2.8 million (“PPP Loans”). In March 2021, the Internal Revenue Service (“IRS”) released Notice 2021-20, which retroactively eliminated the restriction that prevented employers who received a PPP loan from qualifying for the Employee Retention Credit (“ERC”), which is a refundable tax credit against certain employment taxes. Upon determination that the employer has complied with all of the conditions required to receive the credit, a receivable is recognized and the credit reduces salaries and wages. For the fiscal year ended October 31, 2021, we qualified and filed to claim the ERC and have recorded this as an other receivable classified in other current assets. As of July 31, 2022, the ERC in other receivable classified in other current assets were $1.7 million. We considered the impact of the COVID-19 related economic slowdown on our evaluation of goodwill and non-amortizable intangibles impairment indicators as of July 31, 2022. Although no impairment indicators were identified, it is possible that impairments could emerge as the impact of the crisis becomes clearer, and those impairment losses could be material. 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. 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 July 31, 2022 and October 31, 2021, 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 current liabilities. Recent accounting standards Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), which pushes back the effective date for public business entities that are smaller reporting companies, as defined by the SEC, to fiscal years beginning after December 15, 2022. 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 January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments of this update, the goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss should be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The guidance also still gives entities the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. We adopted the standard as of November 1, 2020, the beginning of our fiscal 2021, applying this prospectively. The adoption of the standard did not result in an impairment charge as of July 31, 2022 or October 31, 2021. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new ASU also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. These changes aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. The guidance was effective for the Company beginning on November 1, 2021 and prescribes different transition methods for the various provisions. The adoption of this standard had no material impact on the Company’s financial statements or related disclosures. |
Note 2 - Business Acquisition
Note 2 - Business Acquisition | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2 Business acquisition On March 1, 2022, the Company completed its purchase (the “Purchase Transaction”) of 100% of the issued and outstanding membership interests of Microlab, a New Jersey limited liability company, from Wireless Telecom Group, Inc, a New Jersey corporation (the “Seller”) pursuant to the Membership Interest Purchase Agreement (the “Purchase Agreement”) dated December 16, 2021, with the Seller. The consideration for the Purchase Transaction was $ 24,250,000, The acquisition was accounted for 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-party specialist. Microlab designs and manufactures high-performance RF and Microwave products enabling signal distribution and deployment of in-building DAS (distributed antenna systems), wireless base stations and small cell networks. The Microlab acquisition further diversifies and strengthens the portfolio of products that we offer to the market and allows us to provide a more complete solution to our customers in key market segments. All manufacturing operations are performed at Microlab’s facilities in New Jersey. The acquisition closed on March 1, 2022, accordingly, subsequent to March 1, 2022, Microlab’s financial results have been included in the results of the RF Connector and Cable Assembly (“RF Connector”) segment as well as in the consolidated statements of operations. The Company expects the goodwill recorded to be deductible for income tax purposes. Acquired amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives ranging from one ten The following table summarizes the components of the purchase price at fair values at March 1, 2022: Cash consideration paid at closing $ 24,250,000 Post-closing adjustment 225,000 Total consideration transferred $ 24,475,000 The following table summarizes the allocation of the preliminary purchase price at fair value at March 1, 2022: Current assets $ 6,924,000 Property and equipment 198,000 Intangible assets 13,840,000 Goodwill 5,215,000 Non-interest bearing liabilities (1,702,000 ) Net assets acquired at fair value $ 24,475,000 The current purchase price allocation is preliminary. The primary areas of the preliminary purchase price allocations that are not yet finalized relate to the fair value of certain tangible and intangible assets acquired and liabilities assumed, and residual goodwill. The Company expects to continue to obtain information to assist in determining the fair values of the net assets acquired at the acquisition dates during the measurement periods. Any adjustments to the preliminary purchase price allocation identified during the measurement period, which will not exceed one year from the acquisition date, will be accounted for prospectively. The following unaudited pro forma financial information presents the combined operating results of the Company and Microlab 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 Microlab as of November 1, 2021 is presented in the following table: Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 Revenue $ 23,842 $ 19,633 $ 68,369 $ 47,621 Net income 771 1,326 1,510 5,992 Earnings per share Basic $ 0.08 $ 0.13 $ 0.15 $ 0.60 Diluted $ 0.08 $ 0.13 $ 0.15 $ 0.59 Basic 10,127,244 9,979,578 10,100,767 9,955,193 Diluted 10,238,932 10,150,396 10,233,209 10,131,172 |
Note 3 - Inventories and Major
Note 3 - Inventories and Major Vendors | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 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): July 31, 2022 October 31, 2021 Raw materials and supplies $ 12,116 $ 6,422 Work in process 361 381 Finished goods 6,684 4,376 Totals $ 19,161 $ 11,179 For the three months ended July 31, 2022, one one one one |
Note 4 - Other Current Assets
Note 4 - Other Current Assets | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | Note 4 Other current assets Other current assets consist of the following (in thousands): July 31, 2022 October 31, 2021 Employee retention credit ("ERC") $ 1,685 $ 1,774 Prepaid taxes 537 314 Prepaid expense 805 439 Reimbursement for tenant improvements 2,741 - Other 879 366 Totals $ 6,647 $ 2,893 Pursuant to the CARES Act, eligible employers are able to claim an ERC, which is a refundable tax credit against certain employment taxes. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS. The period assessed for eligibility of the ERC is on a calendar year basis. As of July 31, 2022, the remaining portion of the ERC that we have not yet received is included as other receivables in other current assets. |
Note 5 - Accrued Expenses
Note 5 - Accrued Expenses | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | Note 5 Accrued expenses Accrued expenses consist of the following (in thousands): July 31, 2022 October 31, 2021 Wages payable $ 2,851 $ 2,607 Accrued receipts 2,068 1,711 Other accrued expenses 1,994 716 Totals $ 6,913 $ 5,034 Accrued receipts represent purchased inventory for which invoices have not been received. |
Note 6 - Earnings Per Share
Note 6 - Earnings Per Share | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 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 471,464 and 298,015 shares for the three months ended July 31, 2022 and 2021, respectively, and 482,889 and 371,338 shares for the nine months ended July 31, 2022 and 2021, 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 July 31, Nine Months Ended July 31, 2022 2021 2022 2021 Weighted average shares outstanding for basic earnings per share 10,127,244 9,979,578 10,100,767 9,955,193 Add effects of potentially dilutive securities-assumed exercise of stock options 111,688 170,818 132,442 175,979 Weighted average shares outstanding for diluted earnings per share 10,238,932 10,150,396 10,233,209 10,131,172 |
Note 7 - Stock-based Compensati
Note 7 - Stock-based Compensation and Equity Transactions | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 7 Stock-based compensation and equity transactions On January 12, 2021, we granted a total of 33,500 shares of restricted stock and 67,000 incentive stock options to one manager and three officers. The shares of restricted stock and incentive stock options vest over four one-quarter ten On July 16, 2021, we granted our Chief Executive Officer incentive stock options to purchase 50,000 shares. These options immediately vested on the date of grant, and expire ten On January 10, 2022, we granted a total of 39,666 shares of restricted stock and 106,001 incentive stock options to one manager and three officers. The shares of restricted stock and incentive stock options vest over four one-quarter ten On May 2, 2022, we granted a total of 39,000 incentive stock options to the following: ● One employee was granted 12,000 incentive stock options. These options vested with respesct to 3,000 shares on the date of grant, and the remaining shares vests in equal installments thereafter on each of the next three anniversaries of May 2, 2022. The options expire ten years from the date of grant. ● Three employees were each granted 5,000 incentive stock options. These options will vest in two equal installments on the first two anniversaries of May 2, 2022, and expire ten years from the date of grant. ● Two employees were each granted 6,000 incentive stock options. These options will vest in three equal installments on the first three anniversaries of May 2, 2022, and expire ten years from the date of grant. No other shares or options were granted to Company employees during the three and nine months ended July 31, 2022 and 2021. The weighted average fair value of employee stock options that were granted during the nine months ended July 31, 2022 and 2021 was estimated to be $3.77 and $3.38, respectively, per share, using the Black-Scholes option pricing model with the following assumptions: Nine Months Ended July 31, 2022 2021 Risk-free interest rate 1.47 % 0.58 % Dividend yield 0.00 % 0.00 % Expected life of the option (years) 7.00 7.00 Volatility factor 53.36 % 52.34 % 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 2022 and 2021 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 9 of our Annual Report on Form 10-K for the year ended October 31, 2021. A summary of the status of the options granted under our stock option plans as of July 31, 2022 and the changes in options outstanding during the nine months then ended is presented in the table that follows: Weighted Average Shares Exercise Price Outstanding at November 1, 2021 618,858 $ 5.31 Options granted 145,001 $ 6.94 Options exercised (60,854 ) $ 2.45 Options cancelled (12,000 ) $ 7.58 Options outstanding at July 31, 2022 691,005 $ 5.87 Options exercisable at July 31, 2022 357,715 $ 6.14 Options vested and expected to vest at July 31, 2022 685,154 $ 5.88 Weighted average remaining contractual life of options outstanding as of July 31, 2022: 6.86 years Weighted average remaining contractual life of options exercisable as of July 31, 2022: 6.12 years Weighted average remaining contractual life of options vested and expected to vest as of July 31, 2022: 6.87 years Aggregate intrinsic value of options outstanding at July 31, 2022: $992,000 Aggregate intrinsic value of options exercisable at July 31, 2022: $497,000 Aggregate intrinsic value of options vested and expected to vest at July 31, 2022: $984,000 As of July 31, 2022, $778,000 and $442,000 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 2.39 and 1.32 years, respectively. Under the compensation policies adopted by the Compensation Committee, directors who also are officers and/or employees of the Company do not receive any compensation for serving on the Board. For their service as directors beginning in 2020 until the annual meeting of stockholders held in 2021, non-employee directors (i.e., directors who are not employed by the Company as officers or employees) were awarded $50,000 as Board fees, which amount was payable (a) one-half in cash ($25,000), with payments made on a quarterly basis, and (b) one-half through the grant of restricted shares that vest on a quarterly basis. In addition, the Chairman of the Board of Directors and the Chair of each committee of the Board of Directors received an annual retainer of $15,000, also payable in restricted shares, that vests in four equal quarterly installments commencing on September 15, 2020 and ending on the earlier of September 15, 2021 or the next annual meeting of stockholders. In each case, the equity portion of the award was calculated based on the 20-day average trailing closing price of the Company's common stock from the date of grant ($4.34); and cash and stock payments were pro-rated for board members who served less than the entire service period during fiscal 2021. On September 8, 2021, the Board of Directors determined that the compensation payable to directors as Board fees for the next year ending with the 2022 annual meeting of stockholders was the same as they received in 2021 (i.e., $ 50,000). ($8.21). Stock option expense During the three months ended July 31, 2022 and 2021, stock-based compensation expense totaled $191,000 and $374,000, respectively, and was classified in selling and general expenses. During the nine months ended July 31, 2022 and 2021, stock-based compensation expense totaled $498,000 and $ 634,000, |
Note 8 - Concentrations of Cred
Note 8 - Concentrations of Credit Risk | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 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 July 31, 2022, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $3.8 million. Sales from each customer that were 10% or greater of net sales were as follows: Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 Wireless provider 16% 21% 23% 11% Distributor A * 10% * 12% Distributor B * 10% * 11% * Less than 10% For the nine months ended July 31, 2022, one wireless carrier customer accounted for 23% of net sales and 19% of total net accounts receivable balance. Two customers, both distributors, accounted for approximately 12% and 11% of net sales and had accounts receivable balances that accounted for 8% and 8%, respectively, of the total net accounts receivable balance for the nine months ended July 31, 2021. 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. |
Note 9 - Segment Information
Note 9 - Segment Information | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 9 Segment information We aggregate operating divisions into two The RF Connector segment consists of two divisions and the Custom Cabling segment consists of four divisions. The six 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, Schrofftech, and Microlab. 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 and Microlab divisions 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. 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 and nine months ended July 31, 2022 and 2021 (in thousands): Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 United States $ 19,925 $ 14,624 $ 56,292 $ 34,341 Foreign Countries: Canada 2,218 499 3,179 1,591 Mexico 29 51 106 77 All Other 1,670 83 2,688 307 3,917 633 5,973 1,975 Totals $ 23,842 $ 15,257 $ 62,265 $ 36,316 Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the three months ended July 31, 2022 and 2021 were as follows (in thousands): RF Connector Custom Cabling and Manufacturing and 2022 Cable Assembly Assembly Corporate Total Net sales $ 10,495 $ 13,347 $ - $ 23,842 Income (loss) before provision for income taxes 998 600 (677 ) 911 Depreciation and amortization 390 147 - 537 Total assets 48,351 26,553 12,291 87,195 2021 Net sales $ 3,933 $ 11,324 $ - $ 15,257 Income (loss) before provision for income taxes 255 941 2 1,198 Depreciation and amortization 35 143 - 178 Total assets 7,188 22,524 16,702 46,414 Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the nine months ended July 31, 2022 and 2021 were as follows (in thousands): RF Connector Custom Cabling and Manufacturing and 2022 Cable Assembly Assembly Corporate Total Net sales $ 21,928 $ 40,337 $ - $ 62,265 Income (loss) before benefit from income taxes 1,621 1,721 (2,149 ) 1,193 Depreciation and amortization 720 435 - 1,155 Total assets 48,351 26,553 12,291 87,195 2021 Net sales $ 11,060 $ 25,256 $ - $ 36,316 Income (loss) before benefit from income taxes 2,202 1,090 2,803 6,095 Depreciation and amortization 105 487 - 592 Total assets 7,188 22,524 16,702 46,414 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 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 our 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. We recorded income tax provisions of $140,000 and $272,000 for the three months ended July 31, 2022 and 2021, respectively. The effective tax rate was 15.4% for the three months ended July 31, 2022, compared to 15.2% for the three months ended July 31, 2021. For the nine months ended July 31, 2022 and 2021, we recorded income tax provisions of $196,000 and $727,000, respectively. The effective tax rate was 16.4% for the nine months ended July 31, 2022, compared to 22.1% for the nine months ended July 31, 2021. The change in effective tax rate for the nine months ended July 31, 2022 compared to the nine months ended July 31, 2021 was primarily driven by stock compensation windfall benefits and increased benefit from research and development tax credits. We had $211,000 and $141,000 of unrecognized tax benefits, inclusive of interest and penalties, as of July 31, 2022 and October 31, 2021, respectively. The unrecognized tax benefits, if recognized, would result in a net tax benefit of $206,000 as of July 31, 2022. |
Note 11 - Intangible Assets
Note 11 - Intangible Assets | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 11 Intangible assets Intangible assets consist of the following (in thousands): July 31, 2022 October 31, 2021 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 423 Accumulated amortization (322 ) (289 ) 101 134 Customer relationships (estimated lives 7 - 15 years) 6,058 5,058 Accumulated amortization (2,978 ) (2,711 ) 3,080 2,347 Backlog (estimated life 1 - 2 years) 327 287 Accumulated amortization (303 ) (287 ) 24 - Patents (estimated life 10 - 14 years) 368 368 Accumulated amortization (135 ) (110 ) 233 258 Tradename (estimated life 15 years) 1,700 - Accumulated amortization (47 ) - 1,653 - Proprietary Technology (estimated life 10 years) 11,100 - Accumulated amortization (463 ) - 10,637 - Totals $ 15,728 $ 2,739 Non-amortizable intangible assets: Trademarks $ 1,174 $ 1,174 Amortization expense for the nine months ended July 31, 2022 and the year ended October 31, 2021 was $850,000 and $442,000, respectively. As of July 31, 2022, the weighted-average amortization period for the amortizable intangible assets is 9.72 years. |
Note 12 - Commitments
Note 12 - Commitments | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 12 Commitments We have operating leases for corporate offices, manufacturing facilities, and certain storage units. Our leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases for up to 5 years. 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, to whom we make rent payments totaling $16,000 per month. We also have other operating leases for certain equipment. The components of our facilities and equipment operating lease expenses for the period ended July 31, 2022 were as follows (in thousands): Three Months Ended Nine Months Ended July 31, 2022 July 31, 2022 Operating lease cost $ 477 $ 1,048 Short-term lease cost - 1 Other information related to leases was as follows (in thousands): July 31, 2022 October 31, 2021 Supplemental Cash Flows Information ROU assets obtained in exchange for lease obligations: Operating leases $ 13,967 $ 1,453 Weighted Average Remaining Lease Term Operating leases (in months) 116.40 25.26 Weighted Average Discount Rate Operating leases 3.75 % 3.54 % Future minimum lease payments under non-cancellable leases as of July 31, 2022 were as follows: Year ending October 31, Operating Leases 2022 (excluding nine months ended July 31, 2022) $ 267 2023 2,286 2024 1,991 2025 1,796 2026 1,835 Thereafter 12,123 Total future minimum lease payments 20,298 Less imputed interest (3,459 ) Total $ 16,839 Reported as of July 31, 2022 Operating Leases Other current liabilities $ 1,576 Operating lease liabilities 15,263 Finance lease liabilities - Total $ 16,839 As of July 31, 2022, operating lease ROU asset was $14 million and operating lease liability totaled $16.8 million, of which $1.6 million is classified as current. There were no finance leases as of July 31, 2022. The Cables and Connectors facilities, consisting of four buildings for a total of 21,908 square feet, are leased by RF Industries, Ltd. We renewed the lease effective as of effective August 1, 2022, for 6 month term expiring on January 31, 2023. The monthly rental payment under the new lease currently is $ 33,957.40 The Cables and Connectors and C Enterprises facilities will relocate and consolidate into one building consisting of a total86,952 square feet, which is leased by RF Industries, Ltd. The lease will commence December 1, 2022, for a 120-month term expiring November 30, 2032. The monthly rental payments under the lease will be $139,123 per month for the first year and will increase annually. During the three months ended July 31, 2022, the Company obtained possession of the building to begin construction and renovation, which resulted in a lease liability of $15.6 million ($14.9 million in long-term and $726,000 in current lease liability), a right of use asset of $12.8 million and other receivables related to tenant improvement allowance of $2.7 million being recorded. The discount rate used to calculate the lease liability was 3.76%. Further, as a result of the early possession, the Company recognized additional rent expense of $135,000 for the three months ended July 31, 2022. |
Note 13 - Term Loan, Line of Cr
Note 13 - Term Loan, Line of Credit and PPP loans | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 13 Term Loan, Line of credit and PPP loans In February 2022, we entered into an agreement for a revolving line of credit (the “Revolving Credit Facility”) in the amount of $3.0 million and a $17.0 million term loan (the “Term Loan”, and together with the Revolving Credit Facility, the “Credit Facility”). Amounts outstanding under the Revolving Credit Facility shall bear interest at a rate of 2.0% plus the Bloomberg Short-Term Bank Yield Index Rate (“base interest rate”). The maturity date of the Revolving Credit Facility is March 1, 2024. The Company drew down the entire amount of the Term Loan on March 1, 2022. The primary interest rate for Term Loan is 3.76% per annum. The maturity date of the Term Loan is March 1, 2027. Borrowings under the Credit Facility are secured by a security interest in certain assets of the Company and contains certain loan covenants. The Credit Facility requires the maintenance of certain financial covenants, including: (i) consolidated debt to EBITDA ratio not to exceed 3.00 to 1.00; (ii) consolidated fixed charge coverage ratio of at least 1.25 to 1.00; and (iii) consolidated minimum EBITDA of at least $600,000 for the discrete quarter ending January 31, 2022. In addition, the Credit Facility contains customary affirmative and negative covenants. As of July 31, 2022, we have borrowed $16,192,000 under the Term Loan while we have not borrowed any amounts under the Revolving Credit Facility. In May 2020, we applied for and received loans under the PPP of the CARES Act totaling approximately $2.8 million. The funds from the PPP Loans were used to retain employees, maintain payroll and benefits, and make lease and utility payments. Without the PPP Loans, we would have made material reductions in our workforce (particularly at our New York Facility). As of April 30, 2021, the full amount of the PPP Loans has been forgiven and considered paid in full (including applicable interest). |
Note 14 - Cash Dividend and Dec
Note 14 - Cash Dividend and Declared Dividends | 9 Months Ended |
Jul. 31, 2022 | |
Notes to Financial Statements | |
Cash Dividend and Declared Dividends [Text Block] | Note 14 Cash dividend and declared dividends We did not nor |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of consolidation |
Risks and Uncertainties [Policy Text Block] | Risks and uncertainties |
Fair Value Measurement, Policy [Policy Text Block] | Fair value measurement |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting standards Recently issued accounting pronouncements not yet adopted: Recently issued accounting pronouncements adopted: |
Note 2 - Business Acquisition (
Note 2 - Business Acquisition (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Business Acquisition, Pro Forma Information [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 Revenue $ 23,842 $ 19,633 $ 68,369 $ 47,621 Net income 771 1,326 1,510 5,992 Earnings per share Basic $ 0.08 $ 0.13 $ 0.15 $ 0.60 Diluted $ 0.08 $ 0.13 $ 0.15 $ 0.59 Basic 10,127,244 9,979,578 10,100,767 9,955,193 Diluted 10,238,932 10,150,396 10,233,209 10,131,172 |
Microlab/FXR LLC [Member] | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration paid at closing $ 24,250,000 Post-closing adjustment 225,000 Total consideration transferred $ 24,475,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets $ 6,924,000 Property and equipment 198,000 Intangible assets 13,840,000 Goodwill 5,215,000 Non-interest bearing liabilities (1,702,000 ) Net assets acquired at fair value $ 24,475,000 |
Note 3 - Inventories and Majo_2
Note 3 - Inventories and Major Vendors (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | July 31, 2022 October 31, 2021 Raw materials and supplies $ 12,116 $ 6,422 Work in process 361 381 Finished goods 6,684 4,376 Totals $ 19,161 $ 11,179 |
Note 4 - Other Current Assets (
Note 4 - Other Current Assets (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | July 31, 2022 October 31, 2021 Employee retention credit ("ERC") $ 1,685 $ 1,774 Prepaid taxes 537 314 Prepaid expense 805 439 Reimbursement for tenant improvements 2,741 - Other 879 366 Totals $ 6,647 $ 2,893 |
Note 5 - Accrued Expenses (Tabl
Note 5 - Accrued Expenses (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | July 31, 2022 October 31, 2021 Wages payable $ 2,851 $ 2,607 Accrued receipts 2,068 1,711 Other accrued expenses 1,994 716 Totals $ 6,913 $ 5,034 |
Note 6 - Earnings Per Share (Ta
Note 6 - Earnings Per Share (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 Weighted average shares outstanding for basic earnings per share 10,127,244 9,979,578 10,100,767 9,955,193 Add effects of potentially dilutive securities-assumed exercise of stock options 111,688 170,818 132,442 175,979 Weighted average shares outstanding for diluted earnings per share 10,238,932 10,150,396 10,233,209 10,131,172 |
Note 7 - Stock-based Compensa_2
Note 7 - Stock-based Compensation and Equity Transactions (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended July 31, 2022 2021 Risk-free interest rate 1.47 % 0.58 % Dividend yield 0.00 % 0.00 % Expected life of the option (years) 7.00 7.00 Volatility factor 53.36 % 52.34 % |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Shares Exercise Price Outstanding at November 1, 2021 618,858 $ 5.31 Options granted 145,001 $ 6.94 Options exercised (60,854 ) $ 2.45 Options cancelled (12,000 ) $ 7.58 Options outstanding at July 31, 2022 691,005 $ 5.87 Options exercisable at July 31, 2022 357,715 $ 6.14 Options vested and expected to vest at July 31, 2022 685,154 $ 5.88 |
Note 8 - Concentrations of Cr_2
Note 8 - Concentrations of Credit Risk (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 Wireless provider 16% 21% 23% 11% Distributor A * 10% * 12% Distributor B * 10% * 11% |
Note 9 - Segment Information (T
Note 9 - Segment Information (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 United States $ 19,925 $ 14,624 $ 56,292 $ 34,341 Foreign Countries: Canada 2,218 499 3,179 1,591 Mexico 29 51 106 77 All Other 1,670 83 2,688 307 3,917 633 5,973 1,975 Totals $ 23,842 $ 15,257 $ 62,265 $ 36,316 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | RF Connector Custom Cabling and Manufacturing and 2022 Cable Assembly Assembly Corporate Total Net sales $ 10,495 $ 13,347 $ - $ 23,842 Income (loss) before provision for income taxes 998 600 (677 ) 911 Depreciation and amortization 390 147 - 537 Total assets 48,351 26,553 12,291 87,195 2021 Net sales $ 3,933 $ 11,324 $ - $ 15,257 Income (loss) before provision for income taxes 255 941 2 1,198 Depreciation and amortization 35 143 - 178 Total assets 7,188 22,524 16,702 46,414 RF Connector Custom Cabling and Manufacturing and 2022 Cable Assembly Assembly Corporate Total Net sales $ 21,928 $ 40,337 $ - $ 62,265 Income (loss) before benefit from income taxes 1,621 1,721 (2,149 ) 1,193 Depreciation and amortization 720 435 - 1,155 Total assets 48,351 26,553 12,291 87,195 2021 Net sales $ 11,060 $ 25,256 $ - $ 36,316 Income (loss) before benefit from income taxes 2,202 1,090 2,803 6,095 Depreciation and amortization 105 487 - 592 Total assets 7,188 22,524 16,702 46,414 |
Note 11 - Intangible Assets (Ta
Note 11 - Intangible Assets (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Table Text Block] | July 31, 2022 October 31, 2021 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 423 Accumulated amortization (322 ) (289 ) 101 134 Customer relationships (estimated lives 7 - 15 years) 6,058 5,058 Accumulated amortization (2,978 ) (2,711 ) 3,080 2,347 Backlog (estimated life 1 - 2 years) 327 287 Accumulated amortization (303 ) (287 ) 24 - Patents (estimated life 10 - 14 years) 368 368 Accumulated amortization (135 ) (110 ) 233 258 Tradename (estimated life 15 years) 1,700 - Accumulated amortization (47 ) - 1,653 - Proprietary Technology (estimated life 10 years) 11,100 - Accumulated amortization (463 ) - 10,637 - Totals $ 15,728 $ 2,739 Non-amortizable intangible assets: Trademarks $ 1,174 $ 1,174 |
Note 12 - Commitments (Tables)
Note 12 - Commitments (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended Nine Months Ended July 31, 2022 July 31, 2022 Operating lease cost $ 477 $ 1,048 Short-term lease cost - 1 |
Lessee, Leases, Other Information [Table Text Block] | July 31, 2022 October 31, 2021 Supplemental Cash Flows Information ROU assets obtained in exchange for lease obligations: Operating leases $ 13,967 $ 1,453 Weighted Average Remaining Lease Term Operating leases (in months) 116.40 25.26 Weighted Average Discount Rate Operating leases 3.75 % 3.54 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year ending October 31, Operating Leases 2022 (excluding nine months ended July 31, 2022) $ 267 2023 2,286 2024 1,991 2025 1,796 2026 1,835 Thereafter 12,123 Total future minimum lease payments 20,298 Less imputed interest (3,459 ) Total $ 16,839 Reported as of July 31, 2022 Operating Leases Other current liabilities $ 1,576 Operating lease liabilities 15,263 Finance lease liabilities - Total $ 16,839 |
Note 1 - Unaudited Interim Co_2
Note 1 - Unaudited Interim Condensed Consolidated Financial Statements (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | |||
May 01, 2020 | May 31, 2020 | Jul. 31, 2022 | Oct. 31, 2021 | |
Employee Retention Tax Credit Receivable | $ 1,685 | $ 1,774 | ||
Other Current Assets [Member] | ||||
Employee Retention Tax Credit Receivable | $ 1,700 | |||
Paycheck Protection Program CARES Act [Member] | ||||
Proceeds from Issuance of Long-Term Debt, Total | $ 2,800 | $ 2,800 |
Note 2 - Business Acquisition_2
Note 2 - Business Acquisition (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 01, 2022 | Jul. 31, 2022 | Jul. 31, 2022 | Feb. 28, 2022 | Feb. 25, 2022 | |
Bank of America, N.A. [Member] | |||||
Debt Instrument, Face Amount | $ 17,000,000 | $ 17,000,000 | |||
Microlab/FXR LLC [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||
Business Combination, Consideration Transferred, Before Post-closing Adjustment | $ 24,250,000 | ||||
Payments for Previous Acquisition | $ 225,000 | $ 225,000 | |||
Microlab/FXR LLC [Member] | Selling, General and Administrative Expenses [Member] | |||||
Business Combination, Acquisition Related Costs | $ 1,300,000 | ||||
Microlab/FXR LLC [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | ||||
Microlab/FXR LLC [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years |
Note 2 - Business Acquisition -
Note 2 - Business Acquisition - Components of the Purchase Price (Details) - Microlab/FXR LLC [Member] - USD ($) | 3 Months Ended | |
Mar. 01, 2022 | Jul. 31, 2022 | |
Cash consideration paid at closing | $ 24,250,000 | |
Post-closing adjustment | 225,000 | $ 225,000 |
Total consideration transferred | $ 24,475,000 |
Note 2 - Business Acquisition_3
Note 2 - Business Acquisition - Allocation of Estimated Purchase Price (Details) - Microlab/FXR LLC [Member] | Mar. 01, 2022 USD ($) |
Current assets | $ 6,924,000 |
Property and equipment | 198,000 |
Intangible assets | 13,840,000 |
Goodwill | 5,215,000 |
Non-interest bearing liabilities | (1,702,000) |
Net assets acquired at fair value | $ 24,475,000 |
Note 2 - Business Acquisition_4
Note 2 - Business Acquisition - Unaudited Pro Forma Financial Information (Details) - Microlab/FXR LLC [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Revenue | $ 23,842 | $ 19,633 | $ 68,369 | $ 47,621 |
Net income | $ 771 | $ 1,326 | $ 1,510 | $ 5,992 |
Basic (in dollars per share) | $ 0.08 | $ 0.13 | $ 0.15 | $ 0.60 |
Diluted (in dollars per share) | $ 0.08 | $ 0.13 | $ 0.15 | $ 0.59 |
Basic (in shares) | 10,127,244 | 9,979,578 | 10,100,767 | 9,955,193 |
Diluted (in shares) | 10,238,932 | 10,150,396 | 10,233,209 | 10,131,172 |
Note 3 - Inventories and Majo_3
Note 3 - Inventories and Major Vendors (Details Textual) - Supplier Concentration Risk [Member] - Inventory Purchases [Member] | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Number of Major Vendors | 1 | 1 | 1 | 0 |
One Vendor [Member] | ||||
Concentration Risk, Percentage | 17% | 27% | 28% | 17% |
Note 3 - Inventories and Majo_4
Note 3 - Inventories and Major Vendors - Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Raw materials and supplies | $ 12,116 | $ 6,422 |
Work in process | 361 | 381 |
Finished goods | 6,684 | 4,376 |
Inventories | $ 19,161 | $ 11,179 |
Note 4 - Other Current Assets -
Note 4 - Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Employee retention credit ("ERC") | $ 1,685 | $ 1,774 |
Prepaid taxes | 537 | 314 |
Prepaid expense | 805 | 439 |
Reimbursement for tenant improvements | 2,741 | 0 |
Other | 879 | 366 |
Other Assets, Current | $ 6,647 | $ 2,893 |
Note 5 - Accrued Expenses and O
Note 5 - Accrued Expenses and Other Current Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Wages payable | $ 2,851 | $ 2,607 |
Accrued receipts | 2,068 | 1,711 |
Other accrued expenses | 1,994 | 716 |
Totals | $ 6,913 | $ 5,034 |
Note 6 - Earnings Per Share (De
Note 6 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 471,464 | 298,015 | 482,889 | 371,338 |
Note 6 - Earnings Per Share - B
Note 6 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Basic (in shares) | 10,127,244 | 9,979,578 | 10,100,767 | 9,955,193 |
Add effects of potentially dilutive securities-assumed exercise of stock options (in shares) | 111,688 | 170,818 | 132,442 | 175,979 |
Diluted (in shares) | 10,238,932 | 10,150,396 | 10,233,209 | 10,131,172 |
Note 7 - Stock-based Compensa_3
Note 7 - Stock-based Compensation and Equity Transactions (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
May 02, 2022 | Jan. 10, 2022 | Sep. 08, 2021 | Jul. 16, 2021 | Jan. 12, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Sep. 15, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 10 months 9 days | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 1 month 13 days | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 6 years 10 months 13 days | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 992,000 | $ 992,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | 497,000 | 497,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 984,000 | 984,000 | ||||||||
Selling, General and Administrative Expenses [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | 191,000 | $ 374,000 | 498,000 | $ 634,000 | ||||||
Share-Based Payment Arrangement, Nonemployee [Member] | ||||||||||
Nonemployee Director, Annual Compensation | $ 50,000 | $ 50,000 | ||||||||
Restricted Stock [Member] | ||||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 442,000 | $ 442,000 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 months 25 days | |||||||||
Incentive Stock Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 39,000 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.77 | $ 3.38 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 778,000 | $ 778,000 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 4 months 20 days | |||||||||
One Manager and Three Officers [Member] | Restricted Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 39,666 | 33,500 | ||||||||
One Manager and Three Officers [Member] | One Manager and Three Officers [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 106,001 | 67,000 | ||||||||
One Manager and Three Officers [Member] | Restricted Stock and Incentive Stock Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years | 4 years | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | |||||||||
One Manager and Three Officers [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting on January 12, 2022 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | |||||||||
One Manager and Three Officers [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting on January 10, 2023 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | |||||||||
One Manager and Three Officers [Member] | Incentive Stock Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | |||||||||
Chief Executive Officer [Member] | Incentive Stock Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | |||||||||
Non-employee Directors and Chairperson of Committee on Board [Member] | ||||||||||
Annual Payable, Additional Compensation | $ 15,000 | |||||||||
Share Price, 20 Day Average (in dollars per share) | $ 8.21 | $ 4.34 | ||||||||
Non-employee Directors and Chairman of the Board [Member] | ||||||||||
Annual Payable, Additional Compensation | $ 25,000 | |||||||||
Non-employee Directors and Audit Committee Chair [Member] | ||||||||||
Annual Payable, Additional Compensation | 25,000 | |||||||||
Non-employee Directors and Compensation Committee Chair [Member] | ||||||||||
Annual Payable, Additional Compensation | 20,000 | |||||||||
Non-employee Directors and Strategic Planning and Capital Allocation Chair [Member] | ||||||||||
Annual Payable, Additional Compensation | 20,000 | |||||||||
Non-employee Directors and Nominating & Governance Chair [Member] | ||||||||||
Annual Payable, Additional Compensation | $ 10,000 | |||||||||
Mr. Holdsworth [Member] | Restricted Stock [Member] | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 5,785 | |||||||||
Ms. Cefali [Member] | Restricted Stock [Member] | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 4,871 | |||||||||
Mr. Garland [Member] | Restricted Stock [Member] | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 4,567 | |||||||||
Mr. Fink [Member] | Restricted Stock [Member] | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 3,044 |
Note 7 - Stock-based Compensa_4
Note 7 - Stock-based Compensation and Equity Transactions - Assumptions (Details) | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Risk-free interest rate | 1.47% | 0.58% |
Dividend yield | 0% | 0% |
Expected life of the option (years) (Year) | 7 years | 7 years |
Volatility factor | 53.36% | 52.34% |
Note 7 - Stock-based Compensa_5
Note 7 - Stock-based Compensation and Equity Transactions - Options Outstanding (Details) - $ / shares | 9 Months Ended |
Jul. 31, 2022 | |
Outstanding at beginning of year (in shares) | 618,858 |
Options outstanding at end of year, weighted average exercise price (in dollars per share) | $ 5.31 |
Options granted (in shares) | 145,001 |
Options granted, weighted average exercise price (in dollars per share) | $ 6.94 |
Options exercised (in shares) | (60,854) |
Options exercised, weighted average exercise price (in dollars per share) | $ 2.45 |
Options cancelled (in shares) | (12,000) |
Options canceled or expired, weighted average exercise price (in dollars per share) | $ 7.58 |
Options outstanding at end of year (in shares) | 691,005 |
Options outstanding at end of year, weighted average exercise price (in dollars per share) | $ 5.87 |
Options exercisable at end of year (in shares) | 357,715 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 6.14 |
Options vested and expected to vest at end of year (in shares) | 685,154 |
Options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 5.88 |
Note 8 - Concentrations of Cr_3
Note 8 - Concentrations of Credit Risk (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash, Uninsured Amount | $ 3.8 | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Wireless Carrier Customer [Member] | ||
Concentration Risk, Percentage | 23% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Distributor One [Member] | ||
Concentration Risk, Percentage | 12% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Distributor Two [Member] | ||
Concentration Risk, Percentage | 11% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Wireless Carrier Customer [Member] | ||
Concentration Risk, Percentage | 19% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Distributor One [Member] | ||
Concentration Risk, Percentage | 8% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Distributor Two [Member] | ||
Concentration Risk, Percentage | 8% |
Note 8 - Concentrations of Cr_4
Note 8 - Concentrations of Credit Risk - Sales (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | ||
Wireless Provider [Member] | |||||
Concentration Risk, Percentage | 16% | 21% | 23% | 11% | |
Distributor A [Member] | |||||
Concentration Risk, Percentage | [1] | 10% | 12% | ||
Distributor B [Member] | |||||
Concentration Risk, Percentage | 10% | 11% | |||
[1]Less than 10% |
Note 9 - Segment Information (D
Note 9 - Segment Information (Details Textual) | 9 Months Ended |
Jul. 31, 2022 | |
Number of Reportable Segments | 2 |
Note 9 - Segment Information -
Note 9 - Segment Information - Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net sales | $ 23,842 | $ 15,257 | $ 62,265 | $ 36,316 |
UNITED STATES | ||||
Net sales | 19,925 | 14,624 | 56,292 | 34,341 |
CANADA | ||||
Net sales | 2,218 | 499 | 3,179 | 1,591 |
MEXICO | ||||
Net sales | 29 | 51 | 106 | 77 |
All Other Foreign Countries [Member] | ||||
Net sales | 1,670 | 83 | 2,688 | 307 |
Non-US [Member] | ||||
Net sales | $ 3,917 | $ 633 | $ 5,973 | $ 1,975 |
Note 9 - Segment Information _2
Note 9 - Segment Information - Net Sales, Income Before Provision for Income Taxes and Other Related Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Net sales | $ 23,842 | $ 15,257 | $ 62,265 | $ 36,316 | |
Income (loss) before provision for income taxes | 911 | 1,198 | 1,193 | 6,095 | |
Depreciation and amortization | 537 | 178 | 1,155 | 592 | |
Total assets | 87,195 | 46,414 | 87,195 | 46,414 | $ 49,648 |
Corporate, Non-Segment [Member] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Income (loss) before provision for income taxes | (677) | 2 | (2,149) | 2,803 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Total assets | 12,291 | 16,702 | 12,291 | 16,702 | |
RF Connector and Cable Assembly [Member] | Operating Segments [Member] | |||||
Net sales | 10,495 | 3,933 | 21,928 | 11,060 | |
Income (loss) before provision for income taxes | 998 | 255 | 1,621 | 2,202 | |
Depreciation and amortization | 390 | 35 | 720 | 105 | |
Total assets | 48,351 | 7,188 | 48,351 | 7,188 | |
Custom Cabling Manufacturing and Assembly [Member] | Operating Segments [Member] | |||||
Net sales | 13,347 | 11,324 | 40,337 | 25,256 | |
Income (loss) before provision for income taxes | 600 | 941 | 1,721 | 1,090 | |
Depreciation and amortization | 147 | 143 | 435 | 487 | |
Total assets | $ 26,553 | $ 22,524 | $ 26,553 | $ 22,524 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Income Tax Expense (Benefit), Total | $ 140,000 | $ 272,000 | $ 196,000 | $ 727,000 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 15.40% | 15.20% | 16.40% | 22.10% | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 211,000 | $ 211,000 | $ 141,000 | ||
Unrecognized Tax Benefits, Ending Balance | $ 206,000 | $ 206,000 |
Note 11 - Intangible Assets (De
Note 11 - Intangible Assets (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Oct. 31, 2021 | |
Amortization of Intangible Assets | $ 850,000 | $ 442,000 |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 9 years 8 months 19 days |
Note 11 - Intangible Assets - I
Note 11 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Amortizable intangible assets, net | $ 15,728 | $ 2,739 |
Non-amortizable intangible assets, trademarks | 1,174 | 1,174 |
Trademarks [Member] | ||
Non-amortizable intangible assets, trademarks | 1,174 | 1,174 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, gross | 423 | 423 |
Accumulated amortization | (322) | (289) |
Amortizable intangible assets, net | 101 | 134 |
Customer Relationships [Member] | ||
Amortizable intangible assets, gross | 6,058 | 5,058 |
Accumulated amortization | (2,978) | (2,711) |
Amortizable intangible assets, net | 3,080 | 2,347 |
Order or Production Backlog [Member] | ||
Amortizable intangible assets, gross | 327 | 287 |
Accumulated amortization | (303) | (287) |
Amortizable intangible assets, net | 24 | 0 |
Patents [Member] | ||
Amortizable intangible assets, gross | 368 | 368 |
Accumulated amortization | (135) | (110) |
Amortizable intangible assets, net | 233 | 258 |
Trade Names [Member] | ||
Amortizable intangible assets, gross | 1,700 | 0 |
Accumulated amortization | (47) | 0 |
Amortizable intangible assets, net | 1,653 | 0 |
Technology-Based Intangible Assets [Member] | ||
Amortizable intangible assets, gross | 11,100 | 0 |
Accumulated amortization | (463) | 0 |
Amortizable intangible assets, net | $ 10,637 | $ 0 |
Note 11 - Intangible Assets -_2
Note 11 - Intangible Assets - Intangible Assets-parentheticals (Details) | 9 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Oct. 31, 2021 | |
Order or Production Backlog [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | 1 year |
Note 11 - Intangible Assets -_3
Note 11 - Intangible Assets - Intangible Assets-parentheticals (Details) (Parentheticals) | 9 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Oct. 31, 2021 | |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | 5 years |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years | 7 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | 15 years |
Order or Production Backlog [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | 1 year |
Order or Production Backlog [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 2 years | 2 years |
Patents [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | 10 years |
Patents [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 14 years | 14 years |
Trade Names [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | 15 years |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | 10 years |
Note 12 - Commitments (Details
Note 12 - Commitments (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 USD ($) ft² | Jul. 31, 2022 USD ($) ft² | Apr. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 5 years | 5 years | ||
Operating Lease, Right-of-Use Asset | $ 13,967,000 | $ 13,967,000 | $ 14,000,000 | $ 1,453,000 |
Operating Lease, Liability, Total | 16,839,000 | 16,839,000 | 16,800,000 | |
Operating Lease, Liability, Current | 1,576,000 | 1,576,000 | 832,000 | |
Operating Lease, Liability, Noncurrent | 15,263,000 | 15,263,000 | $ 675,000 | |
Tenant Improvement Allowance [Member] | ||||
Other Receivables | 2,700,000 | 2,700,000 | ||
Cables and Connectors Facilities [Member[ | ||||
Lessee, Operating Lease, Monthly Rent | $ 33,957 | $ 33,957 | ||
Area of Real Estate Property (Square Foot) | ft² | 21,908 | 21,908 | ||
Lessee, Operating Lease, Renewal Term (Month) | 6 months | 6 months | ||
Cables and Connectors and C Enterprises Facilities [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 12,800,000 | $ 12,800,000 | ||
Operating Lease, Liability, Total | 15,600,000 | 15,600,000 | ||
Operating Lease, Liability, Current | $ 726,000 | $ 726,000 | ||
Area of Real Estate Property (Square Foot) | ft² | 86,952 | 86,952 | ||
Lessee, Operating Lease, Term of Contract (Month) | 120 months | 120 months | ||
Lessee, Operating Lease, Monthly Rent Payment | $ 139,123 | |||
Operating Lease, Liability, Noncurrent | $ 14,900,000 | $ 14,900,000 | ||
Lessee, Operating Lease, Discount Rate | 3.76% | 3.76% | ||
Operating Lease, Expense | $ 135,000 | |||
Other Current Liabilities [Member] | ||||
Operating Lease, Liability, Current | 1,576,000 | $ 1,576,000 | $ 1,600,000 | |
K and K Unlimited [Member] | ||||
Lessee, Operating Lease, Monthly Rent | $ 16,000 | $ 16,000 | ||
Minimum [Member] | ||||
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year | 1 year | ||
Maximum [Member] | ||||
Lessee, Operating Lease, Remaining Lease Term (Year) | 10 years | 10 years |
Note 12 - Commitments - Operati
Note 12 - Commitments - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jul. 31, 2022 | Jul. 31, 2022 | |
Operating lease cost | $ 477 | $ 1,048 |
Short-term lease cost | $ 0 | $ 1 |
Note 12 - Commitments - Other I
Note 12 - Commitments - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Oct. 31, 2021 | |
Operating leases | $ 13,967 | $ 1,453 |
Operating leases (in months) (Month) | 116 months 12 days | 25 months 7 days |
Operating leases | 3.75% | 3.54% |
Note 12 - Commitments - Future
Note 12 - Commitments - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 |
2022 (excluding nine months ended July 31, 2022) | $ 267 | ||
Current portion of operating lease liabilities | 1,576 | $ 832 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 2,286 | ||
Operating lease liabilities | 15,263 | $ 675 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 1,991 | ||
Finance lease liabilities | 0 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 1,796 | ||
Total | 16,839 | $ 16,800 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 1,835 | ||
Thereafter | 12,123 | ||
Total future minimum lease payments | 20,298 | ||
Less imputed interest | (3,459) | ||
Other Current Liabilities [Member] | |||
Current portion of operating lease liabilities | $ 1,576 | $ 1,600 |
Note 13 - Term Loan, Line of _2
Note 13 - Term Loan, Line of Credit and PPP loans (Details Textual) | 1 Months Ended | 9 Months Ended | ||||
May 01, 2020 USD ($) | Feb. 28, 2022 USD ($) | May 31, 2020 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Feb. 25, 2022 USD ($) | |
Paycheck Protection Program CARES Act [Member] | ||||||
Term Loan | $ 2,800,000 | $ 2,800,000 | ||||
Term Loan [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.76% | |||||
Long-Term Debt, Gross | $ 16,192,000 | |||||
Term Loan | $ 17,000,000 | $ 0 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||||
Bank of America, N.A. [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | |||||
Debt Instrument, Face Amount | $ 17,000,000 | $ 17,000,000 | ||||
Debt Instrument, Covenant, Maximum EBITDA Ratio | 3 | |||||
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 1.25 | |||||
Dent Instrument, Covenant Required Ebitda | $ 600,000 |
Note 14 - Cash Dividend and D_2
Note 14 - Cash Dividend and Declared Dividends (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Payments of Ordinary Dividends, Common Stock | $ 0 | $ 0 | $ 0 | $ 0 |