Optical Cable (OCC) 10-Q 11 Sep 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jul. 31, 2015	Sep. 04, 2015
Entity Registrant Name	OPTICAL CABLE CORP
Entity Central Index Key	1,000,230
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		7,075,532
Document Type	10-Q
Document Period End Date	Jul. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jul. 31, 2015	Oct. 31, 2014
Current assets:
Cash	$ 556,105	$ 1,089,507
Trade accounts receivable, net of allowance for doubtful accounts of $71,965 at July 31, 2015 and $92,988 at October 31, 2014	10,810,394	14,076,349
Other receivables	129,399	180,135
Income taxes refundable	360,325	0
Inventories	18,621,098	17,518,119
Prepaid expenses	599,129	578,843
Deferred income taxes, current	1,962,005	1,933,653
Total current assets	33,038,455	35,376,606
Property and equipment, net	13,978,787	13,113,445
Intangible assets, net	517,404	438,696
Deferred income taxes - noncurrent	212,446	320,509
Other assets, net	1,285,828	789,358
Total assets	49,032,920	50,038,614
Current liabilities:
Current installments of long-term debt	277,969	269,996
Accounts payable and accrued expenses	5,891,227	5,438,519
Accrued compensation and payroll taxes	1,408,891	2,895,100
Income taxes payable	24,512	698,051
Total current liabilities	7,602,599	9,301,666
Note payable to bank	5,000,000	2,500,000
Long-term debt, excluding current installments	7,016,986	7,227,023
Deferred income taxes - noncurrent	61,747	26,038
Other noncurrent liabilities	546,559	677,597
Total liabilities	20,227,891	19,732,324
Shareholders’ equity:
Preferred stock, no par value, authorized 1,000,000 shares; none issued and outstanding	0	0
Common stock, no par value, authorized 50,000,000 shares; issued and outstanding 7,075,532 shares at July 31, 2015 and 6,839,778 shares at October 31, 2014	10,163,137	9,543,686
Retained earnings	19,373,673	21,462,881
Total shareholders’ equity attributable to Optical Cable Corporation	29,536,810	31,006,567
Noncontrolling interest	(731,781)	(700,277)
Total shareholders’ equity	$ 28,805,029	30,306,290
Commitments and contingencies
Total liabilities and shareholders’ equity	$ 49,032,920	$ 50,038,614

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Jul. 31, 2015	Oct. 31, 2014
Allowance for doubtful accounts	$ 71,965	$ 92,988
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	7,075,532	6,839,778
Common stock, shares outstanding (in shares)	7,075,532	6,839,778

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Net sales	$ 20,781,340	$ 21,004,130	$ 56,816,291	$ 57,729,789
Cost of goods sold	15,072,497	13,665,652	40,052,746	38,323,734
Gross profit	5,708,843	7,338,478	16,763,545	19,406,055
Selling, general and administrative expenses	6,084,514	6,756,260	18,279,348	19,637,842
Royalty expense, net	27,059	32,474	117,333	78,828
Amortization of intangible assets	2,600	10,399	7,674	29,582
Income (loss) from operations	(405,330)	539,345	(1,640,810)	(340,197)
Other expense, net:
Interest expense	(114,248)	(85,426)	(319,282)	(309,372)
Other, net	3,331	(20,941)	7,678	2,491
Other expense, net	(110,917)	(106,367)	(311,604)	(306,881)
Income (loss) before income taxes	(516,247)	432,978	(1,952,414)	(647,078)
Income tax expense (benefit)	46,106	154,831	(630,011)	(325,374)
Net income (loss)	(562,353)	278,147	(1,322,403)	(321,704)
Net income (loss) attributable to noncontrolling interest	10,219	(14,337)	(31,504)	(58,775)
Net income (loss) attributable to OCC	$ (572,572)	$ 292,484	$ (1,290,899)	$ (262,929)
Net income (loss) attributable to OCC per share: Basic and diluted (in dollars per share)	$ (0.09)	$ 0.04	$ (0.21)	$ (0.04)
Dividends declared per share (in dollars per share)	$ 0.02	$ 0.02	$ 0.06	$ 0.06

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Jul. 31, 2015 - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balances (in shares) at Oct. 31, 2014	6,839,778
Balances at Oct. 31, 2014	$ 9,543,686	$ 21,462,881	$ 31,006,567	$ (700,277)	$ 30,306,290
Share-based compensation, net (in shares)	316,390
Share-based compensation, net	$ 618,943		618,943		618,943
Repurchase and retirement of common stock (at cost) (in shares)	(80,636)
Repurchase and retirement of common stock (at cost)		(379,675)	(379,675)		(379,675)
Common stock dividends declared, $0.06 per share		(418,634)	(418,634)		(418,634)
Excess tax benefits from share-based compensation	$ 508		508		508
Net loss		(1,290,899)	(1,290,899)	(31,504)	(1,322,403)
Balances (in shares) at Jul. 31, 2015	7,075,532
Balances at Jul. 31, 2015	$ 10,163,137	$ 19,373,673	$ 29,536,810	$ (731,781)	$ 28,805,029

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	9 Months Ended
	Jul. 31, 2015
Retained Earnings [Member]
Dividends declared per share (in dollars per share)	$ 0.06
Dividends declared per share (in dollars per share)	$ 0.06

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Cash flows from operating activities:
Net loss	$ (1,322,403)	$ (321,704)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion	1,505,559	1,445,381
Bad debt expense (recovery)	(14,203)	18,655
Deferred income tax expense	115,420	306,541
Share-based compensation expense	859,889	693,662
Impact of excess tax benefits from share-based compensation	(508)	(18,647)
Loss on sale of property and equipment	10,382	27,646
(Increase) decrease in:
Trade accounts receivable	3,280,158	(1,967,578)
Other receivables	50,736	64,402
Income taxes refundable	(360,325)	(594,207)
Inventories	(1,102,979)	963,399
Prepaid expenses	(20,286)	(209,399)
Other assets	16,341
Increase (decrease) in:
Accounts payable and accrued expenses	311,058	963,862
Accrued compensation and payroll taxes	(1,486,209)	789,354
Income taxes payable	(673,031)
Other noncurrent liabilities	(152,077)	(290,821)
Net cash provided by operating activities	1,017,522	1,870,546
Cash flows from investing activities:
Purchase of and deposits for the purchase of property and equipment	(2,728,962)	(1,814,492)
Investment in intangible assets	(86,381)	$ (108,764)
Proceeds from sale of property and equipment	500
Net cash used in investing activities	(2,814,843)	$ (1,923,256)
Cash flows from financing activities:
Payroll taxes withheld and remitted on share-based payments	(240,946)	(94,772)
Proceeds from note payable to bank	3,000,000	1,250,000
Principal payments on long-term debt and note payable to bank	(702,064)	(943,609)
Repurchase of common stock	(379,675)	(55,912)
Impact of excess tax benefits from share-based compensation	508	18,647
Common stock dividends paid	(413,904)	(401,478)
Net cash provided by (used in) financing activities	1,263,919	(227,124)
Net decrease in cash	(533,402)	(279,834)
Cash at beginning of period	1,089,507	750,303
Cash at end of period	$ 556,105	$ 470,469

Note 1 - General

Note 1 - General	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	(1) General The accompanying unaudited condensed consolidated financial statements of Optical Cable Corporation and its subsidiaries (collectively, the “Company” or “OCC ® In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists

Note 2 - Stock Incentive Plans

Note 2 - Stock Incentive Plans and Other Share-based Compensation	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	(2) Stock Incentive Plans and Other Share-Based Compensation On March 31, 2015, the Company’s shareholders approved the Optical Cable Corporation Second Amended and Restated 2011 Stock Incentive Plan (the “2015 Restatement”) that was recommended for approval by the Company’s Board of Directors. The 2015 Restatement reserves an additional 550,000 common shares of the Company for issuance under the 2015 Restatement and succeeds and replaces the Optical Cable Corporation Amended and Restated 2011 Stock Incentive Plan (the “2011 Amended Plan”) and the Optical Cable Corporation 2004 Non-Employee Directors Stock Plan. As of July 31, 2015, there were approximately 344,000 remaining shares available for grant under the 2015 Restatement. Share-based compensation expense for employees, a consultant and non-employee Directors recognized in the condensed consolidated statements of operations for the three months and nine months ended July 31, 2015 was $222,195 and $859,889, respectively. Share-based compensation expense for employees, a consultant and non-employee Directors recognized in the condensed consolidated statements of operations, for the three months and nine months ended July 31, 2014 was $229,649 and $693,662, respectively. Share-based compensation expense is entirely related to expense recognized in connection with the vesting of restricted or other stock awards. Restricted and Other Stock Awards The Company has granted, and anticipates granting from time to time, restricted stock awards subject to approval by the Compensation Committee of the Board of Directors. Since fiscal year 2004, the Company has exclusively used restricted stock awards for all share-based compensation. Restricted stock awards to non-employee members of the Board of Directors vest immediately upon grant, but cannot be sold, transferred, pledged or otherwise encumbered or disposed of until six months after the date of grant. Of the restricted stock awards granted to employees during the nine months ended July 31, 2015, approximately 50% are subject to vesting over time (vesting annually over 3 years) and approximately 50% are subject to vesting based on objective performance-based measures during fiscal years 2016 through 2019. Of the restricted stock awards granted to employees during the nine months ended July 31, 2014, approximately 50% are subject to vesting over time (vesting quarterly over 4 years) and approximately 50% are subject to vesting based on objective performance-based measures during fiscal years 2015 through 2019. The Company used gross profit growth as its performance-based measure for restricted stock awards granted to employees during the nine months ended July 31, 2015 and 2014. Restricted stock award activity during the nine months ended July 31, 2015 consisted of restricted or other stock grants totaling 371,637, shares forfeited totaling 5,403 and restricted shares withheld for taxes in connection with the vesting of restricted shares totaling 49,844. Employees have the option to surrender shares to pay for withholding tax obligations resulting from any vesting restricted shares, or to pay cash to the Company in the amount of the withholding taxes owed on the value of any vesting restricted shares in order to avoid surrendering shares. As of July 31, 2015, the estimated amount of compensation cost related to unvested equity-based compensation awards in the form of service-based and operational performance-based shares that the Company will recognize over a 3.4 year weighted-average period is approximately $3.2 million.

Note 3 - Allowance for Doubtful

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Allowance for Doubtful Accounts for Trade Accounts Receivable Disclosure [Text Block]	(3) Allowance for Doubtful Accounts for Trade Accounts Receivable A summary of changes in the allowance for doubtful accounts for trade accounts receivable for the nine months ended July 31, 2015 and 2014 follows: Nine Months Ended July 31, 2015 2014 Balance at beginning of period $ 92,988 $ 74,073 Bad debt expense (recovery) (14,203 ) 18,655 Losses charged to allowance (6,820 ) — Balance at end of period $ 71,965 $ 92,728

Note 4 - Inventories

Note 4 - Inventories	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	(4) Inventories Inventories as of July 31, 2015 and October 31, 2014 consist of the following: July 31, October 31, 2015 2014 Finished goods $ 5,670,645 $ 5,378,114 Work in process 2,870,637 3,210,955 Raw materials 9,812,315 8,663,755 Production supplies 267,501 265,295 Total $ 18,621,098 $ 17,518,119

Note 5 - Product Warranties

Note 5 - Product Warranties	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	(5) Product Warranties As of July 31, 2015 and October 31, 2014, the Company’s accrual for estimated product warranty claims totaled $195,000 and $100,000, respectively, and is included in accounts payable and accrued expenses. Warranty claims expense for the three months and nine months ended July 31, 2015 totaled $73,228 and $229,643, respectively, and warranty claims expense for the three months and nine months ended July 31, 2014 totaled $86,430 and $195,965, respectively. The following table summarizes the changes in the Company’s accrual for product warranties during the nine months ended July 31, 2015 and 2014: Nine Months Ended July 31, 2015 2014 Balance at beginning of period $ 100,000 $ 190,000 Liabilities accrued for warranties issued during the period 205,376 299,477 Warranty claims and costs paid during the period (134,643 ) (250,965 ) Changes in liability for pre-existing warranties during the period 24,267 (103,512 ) Balance at end of period $ 195,000 $ 135,000

Note 6 - Long-term Debt and Not

Note 6 - Long-term Debt and Note Payable to Bank	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Long-term Debt [Text Block]	(6) Long-term Debt and Note Payable to Bank The Company has credit facilities consisting of a real estate term loan, as amended (the “Virginia Real Estate Loan”), a supplemental real estate term loan, as amended (the “North Carolina Real Estate Loan”) and a revolving credit facility, as amended (the “Commercial Loan”). Both the Virginia Real Estate Loan and the North Carolina Real Estate Loan are with BNC Bancorp (“BNC”, formerly Valley Bank), have a fixed interest rate of 4.25% and are secured by a first priority lien on all of the Company’s personal property and assets, except for the Company’s inventory, accounts, general intangibles, deposit accounts, instruments, investment property, letter of credit rights, commercial tort claims, documents and chattel paper, as well as a first lien deed of trust on the Company’s real property. Long-term debt as of July 31, 2015 and October 31, 2014 consists of the following: July 31, October 31, 2015 2014 Virginia Real Estate Loan ($6.5 million original principal) payable in monthly installments of $36,426, including interest (at 4.25%), with final payment of $4,858,220 due April 30, 2018 $ 5,425,310 $ 5,575,586 North Carolina Real Estate Loan ($2.24 million original principal) payable in monthly installments of $12,553, including interest (at 4.25%), with final payment of $1,674,217 due April 30, 2018 1,869,645 1,921,433 Total long-term debt 7,294,955 7,497,019 Less current installments 277,969 269,996 Long-term debt, excluding current installments $ 7,016,986 $ 7,227,023 The Commercial Loan provides the Company with a revolving line of credit for the working capital needs of the Company. Under the terms of the Commercial Loan, the Company may borrow an aggregate principal amount at any one time outstanding not to exceed the lesser of (i) $9.0 million, or (ii) the sum of 85% of certain receivables aged 90 days or less plus 35% of the lesser of $1.0 million or certain foreign receivables plus 25% of certain raw materials inventory. On May 7, 2015, the Company entered into a commercial note renewal letter (“Binding Letter of Renewal”) extending the maturity date of the Commercial Loan to August 31, 2017. The Binding Letter of Renewal extends the maturity date of the Commercial Loan. All other terms of the Commercial Loan remain unaltered and remain in full force and effect. Within the revolving loan limit of the Commercial Loan and the Binding Letter of Renewal, the Company may borrow, repay, and reborrow, at any time from time to time until August 31, 2017. The Company also entered into an Amended and Restated Security Agreement dated May 7, 2015 which is substantially similar in all material aspects to, and replaces in its entirety, the original Security Agreement dated April 30, 2010. Advances under the Commercial Loan accrue interest at LIBOR plus 2.2% (resulting in a 2.39% rate at July 31, 2015). Accrued interest on the outstanding principal balance is due on the first day of each month, with all then outstanding principal, interest, fees and costs due at the Commercial Loan maturity date of August 31, 2017. The Commercial Loan is secured by a first priority lien on all of the Company’s inventory, accounts, general intangibles, deposit accounts, instruments, investment property, letter of credit rights, commercial tort claims, documents and chattel paper. As of July 31, 2015, the Company had $5.0 million of outstanding borrowings on its Commercial Loan and $4.0 million in available credit. As of October 31, 2014, the Company had outstanding borrowings of $2.5 million on its Commercial Loan and $6.5 million in available credit.

Note 7 - Fair Value Measurement

Note 7 - Fair Value Measurements	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	(7) Fair Value Measurements The carrying amounts reported in the condensed consolidated balance sheets as of July 31, 2015 and October 31, 2014 for cash, trade accounts receivable, other receivables and accounts payable and accrued expenses, including accrued compensation and payroll taxes, approximate fair value because of the short maturity of these instruments. The carrying values of the Company’s note payable to bank and long-term debt approximate fair value based on similar long-term debt issues available to the Company as of July 31, 2015 and October 31, 2014. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Note 8 - Net Income (Loss) Per

Note 8 - Net Income (Loss) Per Share	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	(8) Net Income (Loss) Per Share Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. The following is a reconciliation of the numerators and denominators of the net income (loss) per share computations for the periods presented: Three months ended Nine months ended July 31, July 31, 2015 2014 2015 2014 Net income (loss) attributable to OCC (numerator) $ (572,572 ) $ 292,484 $ (1,290,899 ) $ (262,929 ) Shares (denominator) 6,210,454 6,933,676 6,232,973 6,082,314 Basic and diluted net income (loss) per share $ (0.09 ) $ 0.04 $ (0.21 ) $ (0.04 ) Weighted average unvested shares as of July 31, 2015 totaling 872,598 and 677,955, respectively, while issued and outstanding, were not included in the computation of basic and diluted net loss per share for the three months and nine months ended July 31, 2015 (because to include such shares would have been antidilutive, or in other words, to do so would have reduced the net loss per share for those periods). Weighted average unvested shares as of July 31, 2014 totaling 647,196, while issued and outstanding, were not included in the computation of basic and diluted net loss per share for the nine months ended July 31, 2014 (because to include such shares would have been antidilutive, or in other words, to do so would have reduced the net loss per share for that period).

Note 9 - Shareholders' Equity

Note 9 - Shareholders' Equity	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	(9) Shareholders’ Equity On July 15, 2015, the Company declared a quarterly cash dividend of $0.02 per share on its common stock totaling $141,661. This amount is included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet as of July 31, 2015.

Note 10 - Segment Information a

Note 10 - Segment Information and Business and Credit Concentrations	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	(10) Segment Information and Business and Credit Concentrations The Company provides credit, in the normal course of business, to various commercial enterprises, governmental entities and not-for-profit organizations. Concentration of credit risk with respect to trade receivables is limited due to the Company’s large number of customers. The Company also manages exposure to credit risk through credit approvals, credit limits and monitoring procedures. Management believes that credit risks as of July 31, 2015 and October 31, 2014 have been adequately provided for in the condensed consolidated financial statements. For the three months ended July 31, 2015, 12.2% and 14.5% of consolidated net sales were attributable to two customers. For the nine months ended July 31, 2015, 13.3% and 13.8% of consolidated net sales were attributable to the same two customers. For the three months and nine months ended July 31, 2014, 16.8% and 12.7%, respectively, of consolidated net sales were attributable to one customer. For the nine months ended July 31, 2015 and 2014, approximately 79% and 77%, respectively, of consolidated net sales were from customers in the United States, and approximately 21% and 23%, respectively, were from customers outside of the United States. The Company has a single reportable segment for purposes of segment reporting, exclusive of Centric Solutions LLC (“Centric Solutions”). For the three months and nine months ended July 31, 2015, Centric Solutions generated revenues, net of intercompany sales, totaling $629,105 and $1,259,524, respectively. Centric Solutions reported operating income of $42,722 for the three months ended July 31, 2015 and operating losses of $131,706 for the nine months ended July 31, 2015. For the three months and nine months ended July 31, 2014, Centric Solutions generated revenues, net of intercompany sales, totaling $355,671 and $911,075, respectively, and operating losses of $59,938 and $245,716, respectively. Total assets of Centric Solutions of approximately $373,000 (net of intercompany amounts) are included in the total consolidated assets of the Company as of July 31, 2015.

Note 11 - Contingencies

Note 11 - Contingencies	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	(11) Contingencies From time to time, the Company is involved in various claims, legal actions and regulatory reviews arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity.

Note 12 - New Accounting Standa

Note 12 - New Accounting Standards Not Yet Adopted	9 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	(12) New Accounting Standards Not Yet Adopted In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued Accounting Standards Update 2015-03, S implifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory There are no other new accounting standards issued, but not yet adopted by the Company, which are expected to materially impact the Company’s financial position, operating results or financial statement disclosures.

Note 3 - Allowance for Doubtf20

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable (Tables)	9 Months Ended
	Jul. 31, 2015
Notes Tables
Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable [Table Text Block]	Nine Months Ended July 31, 2015 2014 Balance at beginning of period $ 92,988 $ 74,073 Bad debt expense (recovery) (14,203 ) 18,655 Losses charged to allowance (6,820 ) — Balance at end of period $ 71,965 $ 92,728

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	9 Months Ended
	Jul. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	July 31, October 31, 2015 2014 Finished goods $ 5,670,645 $ 5,378,114 Work in process 2,870,637 3,210,955 Raw materials 9,812,315 8,663,755 Production supplies 267,501 265,295 Total $ 18,621,098 $ 17,518,119

Note 5 - Product Warranties (Ta

Note 5 - Product Warranties (Tables)	9 Months Ended
	Jul. 31, 2015
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Nine Months Ended July 31, 2015 2014 Balance at beginning of period $ 100,000 $ 190,000 Liabilities accrued for warranties issued during the period 205,376 299,477 Warranty claims and costs paid during the period (134,643 ) (250,965 ) Changes in liability for pre-existing warranties during the period 24,267 (103,512 ) Balance at end of period $ 195,000 $ 135,000

Note 6 - Long-term Debt and N23

Note 6 - Long-term Debt and Note Payable to Bank (Tables)	9 Months Ended
	Jul. 31, 2015
Notes Tables
Schedule of Debt [Table Text Block]	July 31, October 31, 2015 2014 Virginia Real Estate Loan ($6.5 million original principal) payable in monthly installments of $36,426, including interest (at 4.25%), with final payment of $4,858,220 due April 30, 2018 $ 5,425,310 $ 5,575,586 North Carolina Real Estate Loan ($2.24 million original principal) payable in monthly installments of $12,553, including interest (at 4.25%), with final payment of $1,674,217 due April 30, 2018 1,869,645 1,921,433 Total long-term debt 7,294,955 7,497,019 Less current installments 277,969 269,996 Long-term debt, excluding current installments $ 7,016,986 $ 7,227,023

Note 8 - Net Income (Loss) Pe24

Note 8 - Net Income (Loss) Per Share (Tables)	9 Months Ended
	Jul. 31, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended Nine months ended July 31, July 31, 2015 2014 2015 2014 Net income (loss) attributable to OCC (numerator) $ (572,572 ) $ 292,484 $ (1,290,899 ) $ (262,929 ) Shares (denominator) 6,210,454 6,933,676 6,232,973 6,082,314 Basic and diluted net income (loss) per share $ (0.09 ) $ 0.04 $ (0.21 ) $ (0.04 )

Note 2 - Stock Incentive Plan25

Note 2 - Stock Incentive Plans and Other Share-based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
2015 Restated Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	550,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		344,000		344,000
Restricted Stock [Member] | Non-employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Holding Period				180 days
Restricted Stock [Member] | Vesting over Time [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				50.00%	50.00%
Restricted Stock [Member] | Vesting Based on Objective Performance-based [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				50.00%	50.00%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				371,637
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				5,403
Shares Paid for Tax Withholding for Share Based Compensation				49,844
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				3 years 146 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 3,200,000		$ 3,200,000
Allocated Share-based Compensation Expense		$ 222,195	$ 229,649	$ 859,889	$ 693,662

Note 3 - Allowance for Doubtf26

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable - Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable (Details) - USD ($)	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Balance at beginning of period	$ 92,988	$ 74,073
Bad debt expense (recovery)	(14,203)	$ 18,655
Losses charged to allowance	(6,820)
Balance at end of period	$ 71,965	$ 92,728

Note 4 - Inventories - Componen

Note 4 - Inventories - Components of Inventories (Details) - USD ($)	Jul. 31, 2015	Oct. 31, 2014
Finished goods	$ 5,670,645	$ 5,378,114
Work in process	2,870,637	3,210,955
Raw materials	9,812,315	8,663,755
Production supplies	267,501	265,295
Total	$ 18,621,098	$ 17,518,119

Note 5 - Product Warranties (De

Note 5 - Product Warranties (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014	Oct. 31, 2014	Oct. 31, 2013
Accounts Payable and Accrued Liabilities [Member]
Product Warranty Accrual	$ 195,000		$ 195,000		$ 100,000
Product Warranty Accrual	195,000	$ 135,000	195,000	$ 135,000	$ 100,000	$ 190,000
Product Warranty Expense	$ 73,228	$ 86,430	$ 229,643	$ 195,965

Note 5 - Product Warranties - C

Note 5 - Product Warranties - Changes in Accrual for Product Warranties (Details) - USD ($)	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Balance at beginning of period	$ 100,000	$ 190,000
Liabilities accrued for warranties issued during the period	205,376	299,477
Warranty claims and costs paid during the period	(134,643)	(250,965)
Changes in liability for pre-existing warranties during the period	24,267	(103,512)
Balance at end of period	$ 195,000	$ 135,000

Note 6 - Long-term Debt and N30

Note 6 - Long-term Debt and Note Payable to Bank (Details Textual) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2015	Oct. 31, 2014
The Commercial Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	2.39%
North Carolina Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	4.25%	4.25%
Virginia Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	4.25%	4.25%
Revolving Credit Facility [Member] | The Commercial Loan [Member] | Certain Receivables Aged Ninety Days or Over [Member]
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Related Category Used For Calculation	85.00%
Line of Credit Facility, Maximum Borrowing Capacity, Maximum Aging of Receivables	90 days
Revolving Credit Facility [Member] | The Commercial Loan [Member] | Certain Foreign Receivables [Member]
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Related Category Used For Calculation	35.00%
Line of Credit Facility, Maximum Amount Outstanding During Period	$ 1
Revolving Credit Facility [Member] | The Commercial Loan [Member] | Certain Raw Materials of Inventory [Member]
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Related Category Used For Calculation	25.00%
Revolving Credit Facility [Member] | The Commercial Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.20%
Revolving Credit Facility [Member] | The Commercial Loan [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 9
Long-term Line of Credit	5	$ 2.5
Line of Credit Facility, Remaining Borrowing Capacity	$ 4	$ 6.5

Note 6 - Long-term Debt and N31

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) - USD ($)	Jul. 31, 2015	Oct. 31, 2014
Virginia Real Estate Loan [Member]
Long-term Loan	$ 5,425,310	$ 5,575,586
North Carolina Real Estate Loan [Member]
Long-term Loan	1,869,645	1,921,433
Long-term Loan	7,294,955	7,497,019
Less current installments	277,969	269,996
Long-term debt, excluding current installments	$ 7,016,986	$ 7,227,023

Note 6 - Long-term Debt and N32

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) (Parentheticals) - USD ($)	9 Months Ended	12 Months Ended
	Jul. 31, 2015	Oct. 31, 2014
Virginia Real Estate Loan [Member]
Original principal	$ 6,500,000	$ 6,500,000
Monthly installments	$ 36,426	$ 36,426
Debt Instrument, Interest Rate, Stated Percentage	4.25%	4.25%
Final payment	$ 4,858,220	$ 4,858,220
Maturity date	Apr. 30, 2018	Apr. 30, 2018
North Carolina Real Estate Loan [Member]
Original principal	$ 2,240,000	$ 2,240,000
Monthly installments	$ 12,553	$ 12,553
Debt Instrument, Interest Rate, Stated Percentage	4.25%	4.25%
Final payment	$ 1,674,217	$ 1,674,217
Maturity date	Apr. 30, 2018	Apr. 30, 2018

Note 8 - Net Income (Loss) Pe33

Note 8 - Net Income (Loss) Per Share (Details Textual) - shares	3 Months Ended	9 Months Ended
	Jul. 31, 2015	Jul. 31, 2015	Jul. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	872,598	677,955	647,196

Note 8 - Net Loss Per Share - C

Note 8 - Net Loss Per Share - Components of Reconciliation of Numerators and Denominators Net Income Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Net income (loss) attributable to OCC (numerator)	$ (572,572)	$ 292,484	$ (1,290,899)	$ (262,929)
Shares (denominator) (in shares)	6,210,454	6,933,676	6,232,973	6,082,314
Basic and diluted net income (loss) per share (in dollars per share)	$ (0.09)	$ 0.04	$ (0.21)	$ (0.04)

Note 9 - Shareholders' Equity (

Note 9 - Shareholders' Equity (Details Textual) - USD ($)	Jul. 15, 2015	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Accounts Payable and Accrued Liabilities [Member]
Dividends Payable	$ 141,661
Common Stock, Dividends, Per Share, Declared	$ 0.02	$ 0.02	$ 0.02	$ 0.06	$ 0.06

Note 10 - Segment Information36

Note 10 - Segment Information and Business and Credit Concentrations (Details Textual)	3 Months Ended		9 Months Ended
	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)	Oct. 31, 2014USD ($)
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk, Percentage	12.20%	16.80%	13.30%	12.70%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk, Percentage	14.50%		13.80%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk, Number of Customers	2	1	2	1
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | UNITED STATES
Concentration Risk, Percentage			79.00%	77.00%
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | International Countries [Member]
Concentration Risk, Percentage			21.00%	23.00%
Centric Solutions Limited Liability Company [Member]
Revenue, Net	$ 629,105	$ 355,671	$ 1,259,524	$ 911,075
Operating Income (Loss)	42,722	(59,938)	(131,706)	(245,716)
Assets	373,000		$ 373,000
Number of Reportable Segments			1
Revenue, Net	20,781,340	21,004,130	$ 56,816,291	57,729,789
Operating Income (Loss)	(405,330)	$ 539,345	(1,640,810)	$ (340,197)
Assets	$ 49,032,920		$ 49,032,920		$ 50,038,614