Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jan. 31, 2024 | Mar. 18, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2024 | |
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 | 16868 Via Del Campo Court, Suite 200 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92127 | |
City Area Code | 858 | |
Local Phone Number | 549-6340 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | RFIL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 10,495,548 | |
Entity Central Index Key | 0000740664 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Cash and cash equivalents | $ 4,488 | $ 4,897 |
Trade accounts receivable, net of allowance for doubtful accounts of $265 and $244, respectively | 8,307 | 10,277 |
Inventories | 17,971 | 18,730 |
Other current assets | 2,139 | 2,136 |
TOTAL CURRENT ASSETS | 32,905 | 36,040 |
Property and equipment: | ||
Equipment and tooling | 4,811 | 4,796 |
Furniture and office equipment | 5,759 | 5,631 |
Property, Plant and Equipment, Gross | 10,570 | 10,427 |
Less accumulated depreciation | 5,714 | 5,503 |
Total property and equipment, net | 4,856 | 4,924 |
Operating lease right of use assets, net | 15,315 | 15,689 |
Goodwill | 8,085 | 8,085 |
Amortizable intangible assets, net | 13,173 | 13,595 |
Non-amortizable intangible assets | 1,174 | 1,174 |
Deferred tax assets | 3,344 | 2,494 |
Other assets | 277 | 277 |
TOTAL ASSETS | $ 79,129 | $ 82,278 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 265 | $ 244 |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
CURRENT LIABILITIES | ||
Accounts payable | $ 2,466 | $ 3,201 |
Accrued expenses | 4,595 | 4,572 |
Line of credit | 500 | 1,000 |
Current portion of Term Loan | 2,424 | 2,424 |
Current portion of operating lease liabilities | 1,338 | 1,314 |
TOTAL CURRENT LIABILITIES | 11,323 | 12,511 |
Operating lease liabilities | 19,034 | 19,284 |
Term Loan, net of debt issuance cost | 10,117 | 10,721 |
TOTAL LIABILITIES | 40,474 | 42,516 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Common stock - authorized 20,000,000 shares of $0.01 par value; 10,290,377 and 10,193,287 shares issued and outstanding at April 30, 2023 and October 31, 2022, respectively | 105 | 104 |
Additional paid-in capital | 26,341 | 26,087 |
Retained earnings | 12,209 | 13,571 |
TOTAL STOCKHOLDERS' EQUITY | 38,655 | 39,762 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 79,129 | $ 82,278 |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jan. 31, 2024 | Oct. 31, 2023 |
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) | 10,495,548 | 10,343,223 |
Common Stock, Shares, Outstanding (in shares) | 10,495,548 | 10,343,223 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Net sales | $ 13,458,000 | $ 18,343,000 |
Cost of sales | 10,155,000 | 13,257,000 |
Gross profit | 3,303,000 | 5,086,000 |
Operating expenses: | ||
Engineering | 769,000 | 961,000 |
Selling and general | 4,619,000 | 5,294,000 |
Total operating expenses | 5,388,000 | 6,255,000 |
Operating loss | (2,085,000) | (1,169,000) |
Other (expense) income | (108,000) | (153,000) |
Loss before provision for income taxes | (2,193,000) | (1,322,000) |
Benefit from income taxes | (831,000) | (160,000) |
Consolidated net loss | $ (1,362,000) | $ (1,162,000) |
Loss earnings per share: | ||
Basic (in dollars per share) | $ (0.13) | $ (0.11) |
Diluted (in dollars per share) | $ (0.13) | $ (0.11) |
Weighted average shares outstanding: | ||
Basic (in shares) | 10,410,580 | 10,222,540 |
Diluted (in shares) | 10,410,580 | 10,222,540 |
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, 2022 | 10,193,287 | |||
Balance at Oct. 31, 2022 | $ 102 | $ 25,118 | $ 16,649 | $ 41,869 |
Exercise of stock options | $ 0 | 85 | 85 | |
Stock-based compensation expense | 212 | 212 | ||
Tax withholding related to vesting of restricted stock (in shares) | (1,312) | |||
Tax withholding related to vesting of restricted stock | (7) | (7) | ||
Issuance of restricted stock | 0 | |||
Consolidated net loss | (1,162) | (1,162) | ||
Exercise of stock options (in shares) | 45,000 | |||
Issuance of restricted stock (in shares) | 54,092 | |||
Issuance of restricted stock | $ 1 | 1 | ||
Balance (in shares) at Jan. 31, 2023 | 10,291,067 | |||
Balance at Jan. 31, 2023 | $ 103 | 25,408 | 15,487 | 40,998 |
Balance (in shares) at Oct. 31, 2023 | 10,343,223 | |||
Balance at Oct. 31, 2023 | $ 104 | 26,087 | 13,571 | 39,762 |
Exercise of stock options | $ 0 | |||
Stock-based compensation expense | 0 | |||
Tax withholding related to vesting of restricted stock (in shares) | 152,325 | |||
Tax withholding related to vesting of restricted stock | $ 1 | (1) | ||
Issuance of restricted stock | 0 | |||
Consolidated net loss | (1,362) | $ (1,362) | ||
Exercise of stock options (in shares) | 0 | |||
Balance (in shares) at Jan. 31, 2024 | 10,495,548 | |||
Balance at Jan. 31, 2024 | $ 105 | $ 26,341 | $ 12,209 | $ 38,655 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
OPERATING ACTIVITIES: | ||
Consolidated net loss | $ (1,362) | $ (1,162) |
Bad debt expense | 4 | 64 |
Depreciation and amortization | 633 | 541 |
Stock-based compensation expense | 255 | 212 |
Amortization of debt issuance cost | 2 | 2 |
Tax payments related to shares cancelled for vested restricted stock awards | 0 | (7) |
Deferred income taxes | (851) | (136) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 1,967 | 843 |
Inventories | 759 | 117 |
Other current assets | (3) | 2,665 |
Right of use assets | 148 | 383 |
Accounts payable | (734) | (803) |
Accrued expenses | 22 | (3,246) |
Income taxes payable | 0 | 1,133 |
Other current liabilities | 0 | 283 |
Net cash provided by operating activities | 840 | 889 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (143) | (1,130) |
Net cash used in investing activities | (143) | (1,130) |
FINANCING ACTIVITIES: | 0 | 85 |
Line of credit payments | (500) | 0 |
Term Loan payments | (606) | (606) |
Net cash (used in) provided by financing activities | (1,106) | (521) |
Net decrease in cash and cash equivalents | (409) | (762) |
Cash and cash equivalents, beginning of period | 4,897 | 4,532 |
Cash and cash equivalents, end of period | 4,488 | 3,770 |
Supplemental cash flow information – income taxes paid | $ (12) | $ 0 |
Note 1 - Unaudited Interim Cond
Note 1 - Unaudited Interim Condensed Consolidated Financial Statements | 3 Months Ended |
Jan. 31, 2024 | |
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 for a fair statement of the financial position. Information included in the condensed consolidated balance sheet as of October 31, 2023 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, 2023 included in our Annual Report on Form 10-K (“Form 10-K”) for the year ended October 31, 2023 that was previously filed with the Securities and Exchange Commission (“SEC”). Operating results for the three months ended January 31, 2024 are not necessarily indicative of the results that may be expected for the year ended October 31, 2024. 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. Our accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations and potential other funding sources, in addition to cash on-hand along with the current Credit Facility (as defined below), to meet its obligations as they become due. Although we have incurred operating losses during the three months ended January 31, 2024, we have implemented certain cost-cutting measures to reduce our operating expenses and to help drive positive operating cash flow and increase liquidity. Our plan includes consolidating facilities and recognizing the related operating efficiencies and synergies in our production operations. The Company intends to continue to pursue additional continuous improvement and cost reduction measures, as well as organic growth in revenue and profitability. As of January 31, 2024, the Company was in compliance with the covenants contained in the Loan Agreement, dated as of February 25, 2022 (as amended, the “Loan Agreement”), between the Company and Bank of America, N.A. (the “Bank”), under which the Bank had provided the Company with a $17 million term loan (the “Term Loan”) and a $3 million revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan, the “Credit Facility”). In January 2024, given the economic conditions and the associated impact on earnings, the Company entered into Amendment No.2 to the Loan Agreement to modify the financial covenants in order to avoid a potential covenant violation during the fiscal quarter ending January 31, 2024. In February 2024, the Company entered into Amendment No. 3 to the Loan Agreement to further modify certain financial covenants in order to avoid potential violations. The amendments effect changes to certain provisions and covenants in the Loan Agreement as noted in Note 12. On March 15, 2024, the Company entered into the EBC Credit Agreement (as defined below), pursuant to which proceeds from initial drawings under the EBC Credit Facilities (as defined below) were used to repay in full outstanding obligations under the Loan Agreement. The Loan Agreement was terminated upon entry into the EBC Credit Agreement. 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”), Schroff Technologies International, Ltd. (“Schrofftech”), and Microlab/FXR LLC (“Microlab”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation. Fair value measurement We measure at fair value certain financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1— Quoted prices for identical instruments in active markets; Level 2— Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3— Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. As of January 31, 2024 and October 31, 2023, the carrying amounts reflected in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximated their carrying value due to their short-term nature. Recent accounting standards Recently issued accounting pronouncements adopted: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (ASU) 2016-13, Financial Instruments Credit Losses Financial Instruments Credit Losses (Topic 326), Recently issued accounting pronouncements not yet adopted: In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Note 2 - Concentrations of Cred
Note 2 - Concentrations of Credit Risk | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 2 Concentrations of credit risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At January 31, 2024, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $3.7 million. Sales from each customer that were 10% or greater of net sales were as follows: Three Months Ended January 31, 2024 2023 Wireless provider - 15 % For the three months ended January 31, 2024, no customers accounted for 10% or more of net sales. For the three months ended January 31, 2023, one two |
Note 3 - Inventories and Major
Note 3 - Inventories and Major Vendors | 3 Months Ended |
Jan. 31, 2024 | |
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): January 31, 2024 October 31, 2023 Raw materials and supplies $ 12,456 $ 12,957 Work in process 435 439 Finished goods 5,080 5,334 Totals $ 17,971 $ 18,730 For the three months ended January 31, 2024, no single vendor accounted for 10% or more of inventory purchases. For the three months ended January 31, 2023, two |
Note 4 - Other Current Assets
Note 4 - Other Current Assets | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | Note 4 Other current assets Other current assets consist of the following (in thousands): January 31, 2024 October 31, 2023 Prepaid taxes 630 642 Prepaid expense 1,104 953 Deposits 259 374 Other 146 167 Totals $ 2,139 $ 2,136 |
Note 5 - Accrued Expenses and O
Note 5 - Accrued Expenses and Other Long-term Liabilities | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | Note 5 Accrued expenses and other current liabilities Accrued expenses consist of the following (in thousands): January 31, 2024 October 31, 2023 Wages payable $ 2,172 $ 2,461 Accrued receipts 1,224 1,131 Other accrued expenses 1,199 980 Totals $ 4,595 $ 4,572 Accrued receipts represent purchased inventory for which invoices have not been received. |
Note 6 - Loss Per Share
Note 6 - Loss Per Share | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 6 Loss per share Basic loss per share is computed by dividing net loss 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. During the three ended January 31, 2024, we reported a net loss, and in periods with a net loss, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation due to their anti-dilutive effect. Potentially issuable securities that are out-of-the-money totaled 1,068,022 and 749,488 shares for the three months ended January 31, 2024 and 2023, respectively, and were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect. The following table summarizes the computation of basic and diluted weighted average shares outstanding: Three Months Ended January 31, 2024 2023 Weighted average shares outstanding for basic earnings per share 10,410,580 10,222,540 Add effects of potentially dilutive securities-assumed exercise of stock options - - Weighted average shares outstanding for diluted earnings per share 10,410,580 10,222,540 |
Note 7 - Stock-based Compensati
Note 7 - Stock-based Compensation and Equity Transactions | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 7 Stock-based compensation and equity transactions On January 11, 2023, we granted a total of 54,092 shares of restricted stock and 108,181 incentive stock options to one manager and three officers, respectively. The shares of restricted stock and incentive stock options vest over four one On August 29, 2023, we granted one employee 10,000 incentive stock options. These options vested with respect to 2,500 shares on the date of grant, and the remaining shares vests in equal installments thereafter on each of the next three anniversaries of August 29, 2023. The options expire 10 years from the date of grant. On November 1, 2023, we granted 15,202 shares of restricted stock to one officer in lieu of cash compensation. The shares of restricted stock vest over one one On January 11, 2024, we granted a total of 110,099 shares of restricted stock and 220,001 incentive stock options to one manager and three officers, respectively. The shares of restricted stock and incentive stock options vest over four one No other shares or options were granted to Company employees during the three months ended January 31, 2024 and 2023. The weighted average fair value of employee stock options that were granted during the three months ended January 31, 2024 and 2023 was estimated to be $1.76 and $3.21, respectively, per share, using the Black-Scholes option pricing model with the following assumptions: 2024 2023 Risk-free interest rate 4.00 % 3.76 % Dividend yield 0.00 % 0.00 % Expected life of the option (in years) 7.01 7.00 Volatility factor 53.32 % 54.30 % 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 2024 and 2023 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 to our audited financial statements included in our Annual Report on Form 10-K for the year ended October 31, 2023. A summary of the status of the options granted under our stock option plans as of January 31, 2024 and the changes in options outstanding during the three months then ended is presented in the table that follows: Weighted Average Shares Exercise Price Outstanding at November 1, 2023 754,186 $ 6.04 Options granted 220,001 $ 3.01 Options exercised - $ - Options cancelled - $ - Options outstanding at January 31, 2024 974,187 $ 5.24 Options exercisable at January 31, 2024 540,259 $ 6.14 Options vested and expected to vest at January 31, 2024 968,720 $ 5.25 Weighted average remaining contractual life of options outstanding as of January 31, 2024: 7.20 years Weighted average remaining contractual life of options exercisable as of January 31, 2024: 5.85 years Weighted average remaining contractual life of options vested and expected to vest as of January 31, 2024: 7.20 years Aggregate intrinsic value of options outstanding at January 31, 2024: $82,980 Aggregate intrinsic value of options exercisable at January 31, 2024: $51,260 Aggregate intrinsic value of options vested and expected to vest at January 31, 2024: $82,242 As of January 31, 2024, $929,464 and $913,226 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 3.0 and 1.3 years, respectively. Stock option expense During the three months ended January 31, 2024 and 2023, stock-based compensation expense totaled $255,000 and $212,000, respectively, and was classified in selling and general expense. |
Note 8 - Segment Information
Note 8 - Segment Information | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 8 Segment information We aggregate operating divisions into two two On August 1, 2023, C Enterprises moved and transitioned its physical operations into the RF Connector office in San Diego, CA. Given the synergies in consolidating both the operating divisions into one building, C Enterprises has now been included in the RF Connector segment. Further, since the acquisition of C Enterprises in 2019, the customer base for the division has shifted more towards distribution as opposed to direct to end customer which is more aligned with the RF Connector segment. The segment change of including C Enterprise as part of the RF Connector segment was made retroactive to the beginning of our fiscal year starting November 1, 2022 and reclassified for fiscal 2022 for comparative purposes. Prior to the transition, C Enterprises was included in the Custom Cabling segment. The RF Connector segment consists of three divisions and the Custom Cabling segment consists of three 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, C Enterprises and Microlab divisions constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, 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 months ended January 31, 2024 and 2023 (in thousands): Three Months Ended January 31, 2024 2023 United States $ 12,060 $ 16,104 Foreign Countries: Canada 882 584 Italy 31 1,098 Mexico 3 1 All Other 482 556 1,398 2,239 Totals $ 13,458 $ 18,343 Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the three months ended January 31, 2024 and 2023 are as follows (in thousands): RF Connector Custom Cabling and Manufacturing and Cable Assembly Assembly Corporate Total 2024 Net sales $ 8,807 $ 4,651 $ - $ 13,458 Loss before benefit for income taxes (1,729 ) (261 ) (203 ) (2,193 ) Depreciation and amortization 513 120 - 633 Total assets 52,214 16,667 10,248 79,129 2023 Net sales $ 11,720 $ 6,623 $ - $ 18,343 Income (loss) before provision for income taxes 115 (790 ) (647 ) (1,322 ) Depreciation and amortization 415 126 - 541 Total assets 56,678 19,261 9,201 85,140 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 9 Income taxes We use an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate, to determine its quarterly provision (benefit) for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. We recorded income tax benefits of $831,000 and $160,000 for the three months ended January 31, 2024 and 2023, respectively. The effective tax rate was 37.6% for the three months ended January 31, 2024, compared to 12.3% for the three months ended January 31, 2023. The change in the effective tax rate is primarily due to the Company's full year forecasted financial loss. We had $245,000 and $178,000 of unrecognized tax benefits, as of January 31, 2024 and October 31, 2023, respectively. The unrecognized tax benefits, if recognized, would result in a net tax benefit of $226,000 as of January 31, 2024. The Company assesses all positive and negative evidence in determining if, based on the weight of such evidence, a valuation allowance is required to be recorded against the deferred tax assets as of January 31, 2024. The Company has concluded that the positive evidence of indefinite lived nature of certain tax attributes on hand, and cumulative pre-tax book income on a rolling twelve-quarter basis outweigh the negative evidence of recent losses. Accordingly, the Company has not provided for additional valuation allowance as of January 31, 2024. The realization of the deferred tax assets is contingent upon the Company’s ability to generate sufficient future taxable income. In the event that negative evidence outweighs positive evidence in future periods, the Company may need to record additional valuation allowance, which could have a material impact on our financial position. |
Note 10 - Intangible Assets
Note 10 - Intangible Assets | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 10 Intangible assets Intangible assets consist of the following as of January 31, 2024 and 2023 (in thousands): January 31, 2024 October 31, 2023 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 423 Accumulated amortization (389 ) (378 ) 34 45 Customer relationships (estimated lives 7 - 15 years) 6,058 6,058 Accumulated amortization (3,558 ) (3,461 ) 2,500 2,597 Backlog (estimated life 1 - 2 years) 327 327 Accumulated amortization (327 ) (327 ) - - Patents (estimated life 10 - 14 years) 368 368 Accumulated amortization (184 ) (176 ) 184 192 Tradename (estimated life 15 years) 1,700 1,700 Accumulated amortization (217 ) (189 ) 1,483 1,511 Proprietary Technology (estimated life 10 years) 11,100 11,100 Accumulated amortization (2,128 ) (1,850 ) 8,972 9,250 Totals $ 13,173 $ 13,595 Non-amortizable intangible assets: Trademarks $ 1,174 $ 1,174 Amortization expense for the three months ended January 31, 2024 and the year ended October 31, 2023 was $422,000 and $1,701,000, respectively. As of January 31, 2024, the weighted-average amortization period for the amortizable intangible assets is 8.05 years. |
Note 11 - Commitments
Note 11 - Commitments | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 11 Commitments We adopted ASU 2016-02 on November 1, 2019, and elected the practical expedient modified retrospective method whereby the lease qualification and classification was carried over from the accounting for leases under ASC 840. The lease contracts for the corporate headquarters, RF Connector division manufacturing facilities, Cables Unlimited, Rel-Tech, and C Enterprises commenced prior to the effective date of November 1, 2019, and were determined to be operating leases. All other new contracts have been assessed for the existence of a lease and for the proper classification into operating leases. The rate implicit in the leases was undeterminable and, therefore, the discount rate used in all lease contracts is our incremental borrowing rate. We have operating leases for corporate offices, manufacturing facilities, and certain storage units. Our leases have remaining lease terms of one ten We also have other operating leases for certain equipment. The components of our facilities and equipment operating lease expenses for the periods ending January 31, 2024 and 2023 were as follows (in thousands): Three Months Ended January 31, 2024 2023 Operating lease cost $ 737 $ 762 Short-term lease cost - - Other information related to leases was as follows (in thousands): January 31, 2024 October 31, 2023 Supplemental Cash Flows Information ROU assets obtained in exchange for lease obligations: Operating leases $ - $ 6,479 Weighted Average Remaining Lease Term Operating leases (in months) 112.00 114.26 Weighted Average Discount Rate Operating leases 6.97 % 6.96 % Future minimum lease payments under non-cancellable leases as of January 31, 2024 were as follows: Year ending October 31, Operating Leases 2024 (excluding three months ended January 31, 2024) $ 1,814 2025 2,827 2026 2,877 2027 2,929 2028 2,997 Thereafter 14,878 Total future minimum lease payments 28,322 Less imputed interest (7,950 ) Total $ 20,372 Reported as of January 31, 2024 Operating Leases Other current liabilities $ 1,338 Operating lease liabilities 19,034 Total $ 20,372 As of January 31, 2024, operating lease right-of-use asset was $15.3 million and operating lease liability totaled $20.4 million, of which $1.3 million is classified as current. There were no The Schrofftech facilities, consisting of one building for a total of 7,000 square feet, is leased by RF Industries, Ltd. under a lease that was renewed effective February 1, 2024, for one |
Note 12 - Term Loan and Line of
Note 12 - Term Loan and Line of Credit | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 12 Term Loan and Line of credit In February 2022, we entered into a loan agreement (the “Loan Agreement”) providing 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”) with Bank of America, N.A. (the “Bank”). 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. 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 are subject to 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 (the “Debt Test”); (ii) consolidated fixed charge coverage ratio of at least 1.25 to 1.00 (the “FCCR Test”); and (iii) consolidated minimum EBITDA of at least $600,000 for the discrete quarter ended January 31, 2022. In addition, the Credit Facility contains customary affirmative and negative covenants. On September 12, 2023, we entered into Amendment No. 1 and Waiver to the Loan Agreement (“Loan Amendment No. 1”) with the Bank, which, among other matters, provided for a one-time waiver of our failure to comply with (i) the Debt Test for the period ended July 31, 2023 and (ii) the FCCR Test for the period ended July 31, 2023. Loan Amendment No. 1 also waived testing for compliance with the Debt Test and FCCR Test for the quarterly periods ending October 31, 2023, January 31, 2024, April 30, 2024 and July 31, 2024. Further, pursuant to Loan Amendment No. 1, we were required to maintain (i) (a) until September 21, 2023, minimum liquidity (week-end cash balance plus availability from the Revolving Credit Facility) of $4.0 million, and (b) from September 22, 2023 and thereafter, liquidity equal to the greater of (1) $4.0 million or (2) 80% of the liquidity that had been forecast for this date at the fourth week of the forecast and (ii) minimum EBITDA of ($400,000), $500,000, $1.0 million, and $1.0 million for the quarters ending October 31, 2023, January 31, 2024, April 30, 2024, and July 31, 2024, respectively. On January 26, 2024, we entered into Amendment No. 2 to the Loan Agreement (“Loan Amendment No. 2”) with the Bank, which, among other matters, eliminated the requirement to maintain minimum EBITDA of $500,000 for the quarter ending January 31, 2024. Under Loan Amendment No. 2, the line of credit available to the Company under the Revolving Credit Facility was lowered from $3.0 million to $500,000. Further, Loan Amendment No. 2 required that we maintain from September 22, 2023 and thereafter, liquidity of at least $2.0 million, rather than the greater of $4.0 million or 80% of the forecast liquidity as was required under Loan Amendment No. 1. Under Loan Amendment No. 2, the Company was required to pay an additional fee equal to 1% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan if the Credit Facility was not repaid in full on or before March 1, 2024. This additional fee, if applicable, would be due on March 2, 2024. Further, Loan Amendment No. 2 required that the Company make an additional principal payment of $1.0 million on the Term Loan on March 1, 2024, in addition to the existing monthly payments due on the Term Loan. In connection with Loan Amendment No. 2, we paid the Bank a $500,000 paydown on the Revolving Credit Facility, thereby reducing the outstanding balance from $1.0 million to $500,000. On February 29, 2024, we entered into Amendment No. 3 to the Loan Agreement (“Loan Amendment No. 3”) with the Bank, which, among other matters, defers the requirement that the Company make an additional principal payment of $1.0 million on the Term Loan, from March 1, 2024, as was required under Loan Amendment No. 2, to April 1, 2024. Further, Loan Amendment No. 3 reduces the additional fee the Company is required to pay the Bank on March 2, 2024 from 1% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024 as required under Loan Amendment No. 2, to 0.50% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024. Additionally, Loan Amendment No. 3 requires the Company to pay the Bank a fee equal to 0.50% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024, if the Credit Facility is not repaid in full on or before April 2, 2024 (the “April 2024 Fee”). The April 2024 Fee, if applicable, will be due on April 2, 2024. Under Loan Amendment No. 3, the Company must continue to maintain liquidity of at least $2.0 million and pay the current remaining outstanding balance of $500,000 on the Revolving Credit Facility by March 1, 2024, as required under Loan Amendment No. 2. As of January 31, 2024, we have borrowed $12,556,000 under the Term Loan and $500,000 from the Revolving Credit Facility. On March 15, 2024, we entered into the EBC Credit Agreement (as defined below) and used proceeds from the initial drawings under the EBC Credit Facilities (as defined below) to repay in full outstanding obligations under the Loan Agreement and to pay fees, premiums, costs and expenses, including fees payable in connection with the EBC Credit Agreement. The Loan Agreement was terminated upon entry into the EBC Credit Agreement. |
Note 13 - Cash Dividend and Dec
Note 13 - Cash Dividend and Declared Dividends | 3 Months Ended |
Jan. 31, 2024 | |
Notes to Financial Statements | |
Cash Dividend and Declared Dividends [Text Block] | Note 13 Cash dividend and declared dividends We did not nor |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jan. 31, 2024 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | Item 5. Other Information Amendments to Loan Agreement On January 26, 2024, we entered into Loan Amendment No. 2, which, among other matters, eliminated the requirement to maintain minimum EBITDA of $500,000 for the quarter ending January 31, 2024. Under Loan Amendment No. 2, the line of credit available to the Company under the Revolving Credit Facility was lowered from $3.0 million to $500,000. Further, Loan Amendment No. 2 required that we maintain from September 22, 2023 and thereafter, liquidity of at least $2.0 million, rather than the greater of $4.0 million or 80% of the forecast liquidity as was required under Loan Amendment No. 1. Under Loan Amendment No. 2, the Company was required to pay an additional fee equal to 1% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan if the Credit Facility was not repaid in full on or before March 1, 2024. This additional fee, if applicable, would be due on March 2, 2024. Further, Loan Amendment No. 2 requires that the Company make an additional principal payment of $1.0 million on the Term Loan on March 1, 2024, in addition to the existing monthly payments due on the Term Loan. In connection with Loan Amendment No. 2, we paid the Credit Facility Lender a $500,000 paydown on the Revolving Credit Facility, thereby reducing the outstanding balance from $1.0 million to $500,000. On February 29, 2024, we entered into Loan Amendment No. 3, which, among other matters, defers the requirement that the Company make an additional principal payment of $1.0 million on the Term Loan, from March 1, 2024, as was required under Loan Amendment No. 2, to April 1, 2024. Further, Loan Amendment No. 3 reduces the additional fee the Company is required to pay the Bank on March 2, 2024 from 1% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024 as required under Loan Amendment No. 2, to 0.50% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024. Additionally, Loan Amendment No. 3 requires the Company to pay the Bank a fee equal to 0.50% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024, if the Credit Facility is not repaid in full on or before April 2, 2024 (the “April 2024 Fee”). The April 2024 Fee, if applicable, will be due on April 2, 2024. Under Loan Amendment No. 3, the Company must continue to maintain liquidity of at least $2.0 million and pay the current remaining outstanding balance of $500,000 on the Revolving Credit Facility by March 1, 2024, as required under Loan Amendment No. 2. EBC Credit Agreement On March 15, 2024, the Company entered into a loan and security agreement (the “EBC Credit Agreement”), with each of the subsidiaries of the Company (together with the Company, the “Borrowers”), the lenders party thereto, and Eclipse Business Capital LLC, as administrative agent (the “Agent”). All obligations of the Borrowers under the EBC Credit Agreement are, subject to certain limited exceptions, secured by substantially all of the assets of the Company. The EBC Credit Agreement provides for (i) a senior secured revolving loan facility of up to $15.0 million (the “EBC Revolving Loan Facility”) and (ii) a senior secured revolving credit facility of up to $1.0 million (the “EBC Additional Line” and, together with the EBC Revolving Loan Facility, the “EBC Credit Facilities”) (with a $3.0 million swingline loan sublimit). Availability of borrowings under the EBC Credit Facilities will be based upon a borrowing base formula and periodic borrowing base certifications valuing certain of the accounts receivable and inventories of the Borrowers, as reduced by certain reserves, if any. On March 15, 2024, the Borrowers borrowed the $11.9 million under the EBC Credit Facilities. Proceeds from the initial drawings under the EBC Credit Facilities were used to repay in full outstanding obligations under the Loan Agreement with Bank of America, N.A. (as defined above) and to pay fees, premiums, costs and expenses, including fees payable in connection with the EBC Credit Agreement. Borrowings under the EBC Revolving Loan Facility after the closing date may be used for working capital and general corporate purposes. In the absence of an Event of Default (as defined in the EBC Credit Agreement) or certain other events (including the inability of the Agent to determine the secured overnight financing rate “SOFR”), borrowings under (a) the EBC Revolving Loan Facility accrue interest at a rate of the one-month term SOFR reference rate plus an adjustment of 0.11448% (“Adjusted Term SOFR”) plus 5.00%, and (b) the EBC Additional Line accrue interest at a rate of Adjusted term SOFR plus 6.50%, in each case subject to a floor of 2.00% for Adjusted Term SOFR. The Borrowers will be required to pay a commitment fee for the unused portion of the EBC Revolving Loan Facility of 0.50% per annum. In addition to the foregoing unused commitment fee, the Borrower is required to pay certain other administrative fees pursuant to the terms of the EBC Credit Agreement. The Borrowers must maintain a minimum outstanding balance of $8.0 million under the EBC Credit Facilities. Any borrowing under the EBC Credit Facilities will generally be repaid to the extent that the outstanding amounts exceed the lesser of the maximum facility amount (less any applicable reserves) and the borrowing base. Any amounts repaid may be reborrowed, subject to borrowing base availability, until the maturity date on (i) with respect to the EBC Revolving Loan Facility, March 15, 2027 and (ii) with respect to the EBC Additional Line, June 13, 2024. To the extent the Borrowers prepay the amount outstanding under the EBC Credit Facilities and terminate the EBC Credit Facilities prior to 30 days before the scheduled maturity date, such prepayment will be subject to a prepayment penalty between 1.00% and 3.00% of the then-outstanding committed amounts, depending on the timing of the prepayment. The EBC Credit Agreement contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default or pending or threatened litigation. The EBC Credit Agreement contains certain customary restrictive covenants regarding indebtedness, liens, fundamental changes, investments, restricted payments, disposition of assets, transactions with affiliates, hedging transactions, certain prepayments of indebtedness, amendments to organizational documents and sale and leaseback transactions. In addition, the EBC Credit Agreement restricts the ability of the Borrowers to incur more than $2.5 million of capital expenditures in any 12-month period. The EBC Credit Agreement contains certain customary events of default, which include (subject to grace periods in certain instances) the failure to make payments when due thereunder, the material inaccuracy of representations or warranties, failure to observe or perform certain covenants, cross-defaults, bankruptcy and insolvency-related events, certain judgments, certain ERISA-related events, failure of any lien created in connection with the EBC Credit Agreement to be valid and perfected (subject to certain exceptions) and effected, the uninsured loss of inventory, and the occurrence of a change in control of any of the Borrowers. If an event of default has occurred and continues beyond any applicable cure period, all outstanding obligations under the EBC Credit Agreement may be accelerated or the commitments may be terminated, among other remedies. Additionally, the lenders are not obligated to fund any new borrowing under the EBC Credit Agreement while an event of default is continuing. The foregoing description of the EBC Credit Agreement does not purport to be complete and is qualified in its entirety to the full text of the EBC Credit Agreement, which is attached as Exhibit 10.3 to this Quarterly Report on Form 10-Q and is incorporated by reference herein. Upon the entry into the EBC Credit Agreement, the Loan Agreement was terminated. Insider Trading Arrangements During the quarterly period ended January 31, 2024, no |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | 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”), Schroff Technologies International, Ltd. (“Schrofftech”), and Microlab/FXR LLC (“Microlab”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation. |
Fair Value Measurement, Policy [Policy Text Block] | 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 January 31, 2024 and October 31, 2023, the carrying amounts reflected in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximated their carrying value due to their short-term nature. |
New Accounting Pronouncements, Policy [Policy Text Block] | In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (ASU) 2016-13, Financial Instruments Credit Losses Financial Instruments Credit Losses (Topic 326), Recently issued accounting pronouncements not yet adopted: In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Note 2 - Concentrations of Cr_2
Note 2 - Concentrations of Credit Risk (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended January 31, 2024 2023 Wireless provider - 15 % |
Note 3 - Inventories and Majo_2
Note 3 - Inventories and Major Vendors (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | January 31, 2024 October 31, 2023 Raw materials and supplies $ 12,456 $ 12,957 Work in process 435 439 Finished goods 5,080 5,334 Totals $ 17,971 $ 18,730 |
Note 4 - Other Current Assets (
Note 4 - Other Current Assets (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | January 31, 2024 October 31, 2023 Prepaid taxes 630 642 Prepaid expense 1,104 953 Deposits 259 374 Other 146 167 Totals $ 2,139 $ 2,136 |
Note 5 - Accrued Expenses and_2
Note 5 - Accrued Expenses and Other Long-term Liabilities (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | January 31, 2024 October 31, 2023 Wages payable $ 2,172 $ 2,461 Accrued receipts 1,224 1,131 Other accrued expenses 1,199 980 Totals $ 4,595 $ 4,572 |
Note 6 - Loss Per Share (Tables
Note 6 - Loss Per Share (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended January 31, 2024 2023 Weighted average shares outstanding for basic earnings per share 10,410,580 10,222,540 Add effects of potentially dilutive securities-assumed exercise of stock options - - Weighted average shares outstanding for diluted earnings per share 10,410,580 10,222,540 |
Note 7 - Stock-based Compensa_2
Note 7 - Stock-based Compensation and Equity Transactions (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2024 2023 Risk-free interest rate 4.00 % 3.76 % Dividend yield 0.00 % 0.00 % Expected life of the option (in years) 7.01 7.00 Volatility factor 53.32 % 54.30 % |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Shares Exercise Price Outstanding at November 1, 2023 754,186 $ 6.04 Options granted 220,001 $ 3.01 Options exercised - $ - Options cancelled - $ - Options outstanding at January 31, 2024 974,187 $ 5.24 Options exercisable at January 31, 2024 540,259 $ 6.14 Options vested and expected to vest at January 31, 2024 968,720 $ 5.25 |
Note 8 - Segment Information (T
Note 8 - Segment Information (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended January 31, 2024 2023 United States $ 12,060 $ 16,104 Foreign Countries: Canada 882 584 Italy 31 1,098 Mexico 3 1 All Other 482 556 1,398 2,239 Totals $ 13,458 $ 18,343 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | RF Connector Custom Cabling and Manufacturing and Cable Assembly Assembly Corporate Total 2024 Net sales $ 8,807 $ 4,651 $ - $ 13,458 Loss before benefit for income taxes (1,729 ) (261 ) (203 ) (2,193 ) Depreciation and amortization 513 120 - 633 Total assets 52,214 16,667 10,248 79,129 2023 Net sales $ 11,720 $ 6,623 $ - $ 18,343 Income (loss) before provision for income taxes 115 (790 ) (647 ) (1,322 ) Depreciation and amortization 415 126 - 541 Total assets 56,678 19,261 9,201 85,140 |
Note 10 - Intangible Assets (Ta
Note 10 - Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Table Text Block] | January 31, 2024 October 31, 2023 Amortizable intangible assets: Non-compete agreement (estimated life 5 years) $ 423 $ 423 Accumulated amortization (389 ) (378 ) 34 45 Customer relationships (estimated lives 7 - 15 years) 6,058 6,058 Accumulated amortization (3,558 ) (3,461 ) 2,500 2,597 Backlog (estimated life 1 - 2 years) 327 327 Accumulated amortization (327 ) (327 ) - - Patents (estimated life 10 - 14 years) 368 368 Accumulated amortization (184 ) (176 ) 184 192 Tradename (estimated life 15 years) 1,700 1,700 Accumulated amortization (217 ) (189 ) 1,483 1,511 Proprietary Technology (estimated life 10 years) 11,100 11,100 Accumulated amortization (2,128 ) (1,850 ) 8,972 9,250 Totals $ 13,173 $ 13,595 Non-amortizable intangible assets: Trademarks $ 1,174 $ 1,174 |
Note 11 - Commitments (Tables)
Note 11 - Commitments (Tables) | 3 Months Ended |
Jan. 31, 2024 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended January 31, 2024 2023 Operating lease cost $ 737 $ 762 Short-term lease cost - - |
Lessee, Leases, Other Information [Table Text Block] | January 31, 2024 October 31, 2023 Supplemental Cash Flows Information ROU assets obtained in exchange for lease obligations: Operating leases $ - $ 6,479 Weighted Average Remaining Lease Term Operating leases (in months) 112.00 114.26 Weighted Average Discount Rate Operating leases 6.97 % 6.96 % |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Year ending October 31, Operating Leases 2024 (excluding three months ended January 31, 2024) $ 1,814 2025 2,827 2026 2,877 2027 2,929 2028 2,997 Thereafter 14,878 Total future minimum lease payments 28,322 Less imputed interest (7,950 ) Total $ 20,372 Reported as of January 31, 2024 Operating Leases Other current liabilities $ 1,338 Operating lease liabilities 19,034 Total $ 20,372 |
Note 1 - Unaudited Interim Co_2
Note 1 - Unaudited Interim Condensed Consolidated Financial Statements (Details Textual) - Bank of America, N.A. [Member] - USD ($) | Jan. 31, 2024 | Jan. 26, 2024 | Feb. 28, 2022 |
Debt Instrument, Face Amount | $ 17,000,000 | $ 17,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | $ 500,000 | $ 3,000,000 |
Note 2 - Concentrations of Cr_3
Note 2 - Concentrations of Credit Risk (Details Textual) $ in Millions | 3 Months Ended | |
Jan. 31, 2024 USD ($) | Jan. 31, 2023 | |
Cash, Uninsured Amount | $ 3.7 | |
Wireless Carrier [Member] | ||
Number of Customers | 1 | |
Wireless Carrier [Member] | Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
Concentration Risk, Percentage | 15% | |
Wireless Carrier [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 16% | |
Two Distributors [Member] | ||
Number of Customers | 2 | |
Two Distributors [Member] | Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
Concentration Risk, Percentage | 10% | 10% |
Two Distributors [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 7% | |
Distributor Two [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 10% |
Note 2 - Concentrations of Cr_4
Note 2 - Concentrations of Credit Risk - Sales (Details) | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Wireless Provider [Member] | ||
Wireless provider | 0% | 15% |
Note 3 - Inventories and Majo_3
Note 3 - Inventories and Major Vendors (Details Textual) - Inventory Purchases [Member] - Supplier Concentration Risk [Member] | 3 Months Ended |
Jan. 31, 2023 | |
Two Vendors [Member] | |
Number of Major Vendors | 2 |
Vendor One [Member] | |
Concentration Risk, Percentage | 12% |
Vendor Two [Member] | |
Concentration Risk, Percentage | 10% |
Note 3 - Inventories and Majo_4
Note 3 - Inventories and Major Vendors - Inventories (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Raw materials and supplies | $ 12,456 | $ 12,957 |
Work in process | 435 | 439 |
Finished goods | 5,080 | 5,334 |
Totals | $ 17,971 | $ 18,730 |
Note 4 - Other Current Assets -
Note 4 - Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Prepaid taxes | $ 630 | $ 642 |
Prepaid expense | 1,104 | 953 |
Deposits | 259 | 374 |
Other | 146 | 167 |
Totals | $ 2,139 | $ 2,136 |
Note 5 - Accrued Expenses and_3
Note 5 - Accrued Expenses and Other Long-term Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Wages payable | $ 2,172 | $ 2,461 |
Accrued receipts | 1,224 | 1,131 |
Other accrued expenses | 1,199 | 980 |
Totals | $ 4,595 | $ 4,572 |
Note 6 - Loss Per Share (Detail
Note 6 - Loss Per Share (Details Textual) - shares | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,068,022 | 749,488 |
Note 6 - Loss Per Share - Basic
Note 6 - Loss Per Share - Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Basic (in shares) | 10,410,580 | 10,222,540 |
Add effects of potentially dilutive securities-assumed exercise of stock options (in shares) | 0 | 0 |
Diluted (in shares) | 10,410,580 | 10,222,540 |
Note 7 - Stock-based Compensa_3
Note 7 - Stock-based Compensation and Equity Transactions (Details Textual) - USD ($) | 3 Months Ended | |||||||
Jan. 11, 2024 | Nov. 01, 2023 | Oct. 31, 2023 | Aug. 29, 2023 | Jan. 11, 2023 | Jan. 11, 2021 | Jan. 31, 2024 | Jan. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 2 months 12 days | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 10 months 6 days | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 7 years 2 months 12 days | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 82,980 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | 51,260 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 82,242 | |||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Share-Based Payment Arrangement, Expense | 255,000 | $ 212,000 | ||||||
Restricted Stock [Member] | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 913,226 | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 months 18 days | |||||||
Incentive Stock Options [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 0 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.76 | $ 3.21 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 929,464 | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | |||||||
Incentive Stock Options [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 10,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares (in shares) | 2,500 | |||||||
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 | 110,099 | 54,092 | ||||||
One Manager and Three Officers [Member] | Incentive Stock Options [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 108,181 | |||||||
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 | ||||||
One Manager and Three Officers [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting on January 10, 2024 [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 11, 2025 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | |||||||
Another Manager [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, Options, Forfeitures in Period (in shares) | 50,000 | |||||||
Another Manager [Member] | Restricted Stock and Incentive Stock Options [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | |||||||
One Officer [Member] | Restricted Stock [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 15,202 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 1 year | |||||||
One Officer [Member] | Restricted Stock [Member] | Vesting On January 31, 2024 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | |||||||
Three Officers [Member] | Incentive Stock Options [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 220,001 |
Note 7 - Stock-based Compensa_4
Note 7 - Stock-based Compensation and Equity Transactions - Assumptions (Details) | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Risk-free interest rate | 4% | 3.76% |
Dividend yield | 0% | 0% |
Expected life of the option (years) (Year) | 7 years 3 days | 7 years |
Volatility factor | 53.32% | 54.30% |
Note 7 - Stock-based Compensa_5
Note 7 - Stock-based Compensation and Equity Transactions - Share-Based Payment Arrangement, Option, Activity (Details) | 3 Months Ended |
Jan. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 754,186 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 6.04 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures | 220,001 |
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 3.01 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 0 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period | 0 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 974,187 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 5.24 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 540,259 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 6.14 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 968,720 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 5.25 |
Note 8 - Segment Information (D
Note 8 - Segment Information (Details Textual) | 3 Months Ended |
Jan. 31, 2024 | |
Number of Reportable Segments | 2 |
Note 8 - Segment Information -
Note 8 - Segment Information - Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Net sales | $ 13,458 | $ 18,343 |
UNITED STATES | ||
Net sales | 12,060 | 16,104 |
CANADA | ||
Net sales | 882 | 584 |
ITALY | ||
Net sales | 31 | 1,098 |
MEXICO | ||
Net sales | 3 | 1 |
All Other Foreign Countries [Member] | ||
Net sales | 482 | 556 |
Non-US [Member] | ||
Net sales | $ 1,398 | $ 2,239 |
Note 8 - Segment Information _2
Note 8 - Segment Information - Net Sales, Income Before Provision for Income Taxes and Other Related Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Oct. 31, 2023 | |
Net sales | $ 13,458 | $ 18,343 | |
Income (loss) before benefit for income taxes | (2,193) | (1,322) | |
Depreciation and amortization | 633 | 541 | |
Total assets | 79,129 | 85,140 | $ 82,278 |
Operating Segments [Member] | RF Connector and Cable Assembly [Member] | |||
Net sales | 8,807 | 11,720 | |
Income (loss) before benefit for income taxes | (1,729) | 115 | |
Depreciation and amortization | 513 | 415 | |
Total assets | 52,214 | 56,678 | |
Operating Segments [Member] | Custom Cabling Manufacturing and Assembly [Member] | |||
Net sales | 4,651 | 6,623 | |
Income (loss) before benefit for income taxes | (261) | (790) | |
Depreciation and amortization | 120 | 126 | |
Total assets | 16,667 | 19,261 | |
Corporate, Non-Segment [Member] | |||
Net sales | 0 | 0 | |
Income (loss) before benefit for income taxes | (203) | (647) | |
Depreciation and amortization | 0 | 0 | |
Total assets | $ 10,248 | $ 9,201 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Oct. 31, 2023 | |
Income Tax Expense (Benefit), Total | $ 831,000 | $ 160,000 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 37.60% | 12.30% | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 245,000 | $ 178,000 | |
Unrecognized Tax Benefits, Ending Balance | $ 226,000 |
Note 10 - Intangible Assets (De
Note 10 - Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Jan. 31, 2024 | Oct. 31, 2023 | |
Amortization of Intangible Assets | $ 422,000 | $ 1,701,000 |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 8 years 18 days |
Note 10 - Intangible Assets - I
Note 10 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
Finite-Lived Intangible Assets, Net | $ 13,173 | $ 13,595 |
Trademarks | 1,174 | 1,174 |
Trademarks [Member] | ||
Trademarks | 1,174 | 1,174 |
Noncompete Agreements [Member] | ||
Non-compete agreement (estimated life 5 years) | 423 | 423 |
Accumulated amortization | (389) | (378) |
Finite-Lived Intangible Assets, Net | 34 | 45 |
Customer Relationships [Member] | ||
Non-compete agreement (estimated life 5 years) | 6,058 | 6,058 |
Accumulated amortization | (3,558) | (3,461) |
Finite-Lived Intangible Assets, Net | 2,500 | 2,597 |
Order or Production Backlog [Member] | ||
Non-compete agreement (estimated life 5 years) | 327 | 327 |
Accumulated amortization | (327) | (327) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Patents [Member] | ||
Non-compete agreement (estimated life 5 years) | 368 | 368 |
Accumulated amortization | (184) | (176) |
Finite-Lived Intangible Assets, Net | 184 | 192 |
Trade Names [Member] | ||
Non-compete agreement (estimated life 5 years) | 1,700 | 1,700 |
Accumulated amortization | (217) | (189) |
Finite-Lived Intangible Assets, Net | 1,483 | 1,511 |
Technology-Based Intangible Assets [Member] | ||
Non-compete agreement (estimated life 5 years) | 11,100 | 11,100 |
Accumulated amortization | (2,128) | (1,850) |
Finite-Lived Intangible Assets, Net | $ 8,972 | $ 9,250 |
Note 10 - Intangible Assets -_2
Note 10 - Intangible Assets - Intangible Assets (Details) (Parentheticals) | Jan. 31, 2024 | Jul. 31, 2023 | Oct. 31, 2022 |
Noncompete Agreements [Member] | |||
Estimated life (Year) | 5 years | ||
Customer Relationships [Member] | Minimum [Member] | |||
Estimated life (Year) | 7 years | 7 years | |
Customer Relationships [Member] | Maximum [Member] | |||
Estimated life (Year) | 15 years | ||
Order or Production Backlog [Member] | Minimum [Member] | |||
Estimated life (Year) | 1 year | 1 year | |
Order or Production Backlog [Member] | Maximum [Member] | |||
Estimated life (Year) | 2 years | ||
Patents [Member] | Minimum [Member] | |||
Estimated life (Year) | 10 years | ||
Patents [Member] | Maximum [Member] | |||
Estimated life (Year) | 14 years | ||
Trade Names [Member] | |||
Estimated life (Year) | 15 years | ||
Technology-Based Intangible Assets [Member] | |||
Estimated life (Year) | 10 years |
Note 11 - Commitments (Details
Note 11 - Commitments (Details Textual) | 3 Months Ended | |
Jan. 31, 2024 USD ($) ft² | Oct. 31, 2023 USD ($) | |
Operating Lease, Right-of-Use Asset | $ 15,315,000 | $ 15,689,000 |
Operating Lease, Liability | 20,372,000 | |
Operating Lease, Liability, Current | 1,338,000 | $ 1,314,000 |
Finance Lease, Liability, Total | $ 0 | |
Schrofftech Facilities [Member] | ||
Area of Real Estate Property (Square Foot) | ft² | 7,000 | |
Lessee, Operating Lease, Renewal Term (Year) | 1 year | |
Operating Lease, Monthly Rental Payment | $ 4,607 | |
Other Current Liabilities [Member] | ||
Operating Lease, Liability, Current | 1,338,000 | |
K and K Unlimited [Member] | ||
Lessee, Operating Lease, Monthly Rent | $ 16,000 | |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 5 years |
Note 11 - Commitments - Operati
Note 11 - Commitments - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Operating lease cost | $ 737 | $ 762 |
Short-term lease cost | $ 0 | $ 0 |
Note 11 - Commitments - Other I
Note 11 - Commitments - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jan. 31, 2024 | Oct. 31, 2023 | |
ROU Assets Obtained in Exchange For Lease Obligations, Operating Leases | $ 0 | $ 6,479 |
Operating leases (in months) (Month) | 112 months | 114 months 7 days |
Weighted Average Discount Rate, Operating leases | 6.97% | 6.96% |
Note 11 - Commitments - Future
Note 11 - Commitments - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 31, 2023 |
2024 | $ 1,814 | |
Other current liabilities | 1,338 | $ 1,314 |
2025 | 2,827 | |
Operating lease liabilities | 19,034 | $ 19,284 |
2026 | 2,877 | |
Total | 20,372 | |
2027 | 2,929 | |
2028 | 2,997 | |
Thereafter | 14,878 | |
Total future minimum lease payments | 28,322 | |
Less imputed interest | (7,950) | |
Total | 20,372 | |
Other Current Liabilities [Member] | ||
Other current liabilities | $ 1,338 |
Note 12 - Term Loan and Line _2
Note 12 - Term Loan and Line of Credit (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||||
Jan. 26, 2024 | Feb. 28, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | Jul. 31, 2024 | Apr. 30, 2024 | Mar. 01, 2024 | Feb. 29, 2024 | Oct. 31, 2023 | Sep. 22, 2023 | Sep. 20, 2022 | |
Repayments of Debt | $ 500,000 | $ 0 | |||||||||
Line of Credit, Current | 500,000 | $ 1,000,000 | |||||||||
Term Loan [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.76% | ||||||||||
Long-Term Debt, Gross | 12,556,000 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||||||
Long-Term Line of Credit | 500,000,000,000 | ||||||||||
Bank of America, N.A. [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 3,000,000 | 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 | ||||||||||
Debt Instrument, Covenant Required Ebitda | $ 600,000 | $ 500,000 | (400,000) | ||||||||
Debt Instrument, Covenant, Minimum Liquidity | 2,000,000 | $ 4,000,000 | $ 4,000,000 | ||||||||
Debt Instrument, Covenant, Minimum Liquidity, Percentage Forecasted | 80% | ||||||||||
Repayments of Debt | 500,000 | ||||||||||
Long-Term Line of Credit | $ 500,000 | $ 1,000,000 | |||||||||
Bank of America, N.A. [Member] | Subsequent Event [Member] | |||||||||||
Debt Instrument, Covenant, Minimum Liquidity | $ 2,000,000 | ||||||||||
Bank of America, N.A. [Member] | Forecast [Member] | |||||||||||
Debt Instrument, Covenant Required Ebitda | $ 1,000,000 | $ 1,000,000 | |||||||||
Debt Instrument, Fee Required On Percentage of Outstanding Principle Balance | 1% | 0.50% | |||||||||
Debt Instrument, Additional Payment Amount | $ 1,000,000 | $ 1,000,000 | |||||||||
Line of Credit, Current | $ 500,000 |
Note 13 - Cash Dividend and D_2
Note 13 - Cash Dividend and Declared Dividends (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Payments of Ordinary Dividends, Common Stock | $ 0 | $ 0 |