Optical Cable (OCC) 10-Q 14 Mar 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Jan. 31, 2016	Mar. 04, 2016
Entity Registrant Name	OPTICAL CABLE CORP
Entity Central Index Key	1,000,230
Trading Symbol	occ
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)		7,052,763
Document Type	10-Q
Document Period End Date	Jan. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Current assets:
Cash	$ 538,695	$ 1,083,072
Trade accounts receivable, net of allowance for doubtful accounts of $70,086 at January 31, 2016 and $63,011 at October 31, 2015	7,579,185	9,189,498
Other receivables	42,974	134,428
Income taxes refundable	360,324	360,324
Inventories	17,603,332	17,816,080
Prepaid expenses	530,490	564,024
Total current assets	26,655,000	29,147,426
Property and equipment, net	14,673,631	13,903,919
Intangible assets, net	537,343	523,665
Other assets, net	293,711	1,453,808
Total assets	42,159,685	45,028,818
Current liabilities:
Current installments of long-term debt	284,062	280,999
Accounts payable and accrued expenses	3,463,661	4,116,927
Accrued compensation and payroll taxes	1,050,748	1,222,728
Income taxes payable	45,152	22,498
Total current liabilities	4,843,623	5,643,152
Note payable to bank	6,000,000	6,000,000
Long-term debt, excluding current installments	6,874,247	6,946,008
Other noncurrent liabilities	117,799	551,108
Total liabilities	17,835,669	19,140,268
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 7,052,763 shares at January 31, 2016 and 7,059,548 shares at October 31, 2015	10,565,671	10,363,012
Retained earnings	14,522,574	16,267,595
Total shareholders’ equity attributable to Optical Cable Corporation	25,088,245	26,630,607
Noncontrolling interest	(764,229)	(742,057)
Total shareholders’ equity	$ 24,324,016	$ 25,888,550
Commitments and contingencies
Total liabilities and shareholders’ equity	$ 42,159,685	$ 45,028,818

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Allowance for doubtful accounts	$ 70,086	$ 63,011
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, no 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)	7,052,763	7,059,548
Common stock, shares outstanding (in shares)	7,052,763	7,059,548

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Net sales	$ 14,047,890	$ 17,358,844
Cost of goods sold	10,545,459	11,973,453
Gross profit	3,502,431	5,385,391
Selling, general and administrative expenses	5,087,481	5,720,420
Royalty expense, net	14,778	56,163
Amortization of intangible assets	3,282	2,515
Loss from operations	(1,603,110)	(393,707)
Other expense, net:
Interest expense	(157,814)	(101,660)
Other, net	17,603	(2,254)
Other expense, net	(140,211)	(103,914)
Loss before income taxes	(1,743,321)	(497,621)
Income tax expense (benefit)	23,872	(245,444)
Net loss	(1,767,193)	(252,177)
Net loss attributable to noncontrolling interest	(22,172)	(23,994)
Net loss attributable to OCC	$ (1,745,021)	$ (228,183)
Net loss attributable to OCC per share: Basic and diluted (in dollars per share)	$ (0.28)	$ (0.04)
Cash dividends declared per common share (in dollars per share)		$ 0.02

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 3 months ended Jan. 31, 2016 - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balances (in shares) at Oct. 31, 2015	7,059,548
Balances at Oct. 31, 2015	$ 10,363,012	$ 16,267,595	$ 26,630,607	$ (742,057)	$ 25,888,550
Share-based compensation, net (in shares)	(6,785)
Share-based compensation, net	$ 202,790		202,790		202,790
Excess tax benefits from share-based compensation	$ (131)		(131)		(131)
Net loss		(1,745,021)	(1,745,021)	(22,172)	(1,767,193)
Balances (in shares) at Jan. 31, 2016	7,052,763
Balances at Jan. 31, 2016	$ 10,565,671	$ 14,522,574	$ 25,088,245	$ (764,229)	$ 24,324,016

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Cash flows from operating activities:
Net loss	$ (1,767,193)	$ (252,177)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion	499,185	491,091
Bad debt expense (recovery)	$ 7,075	(26,411)
Deferred income tax expense		225,901
Share-based compensation expense	$ 219,073	250,494
Impact of excess tax benefits from share-based compensation	131	(78,192)
(Gain) loss on sale of property and equipment	(4,490)	4,776
(Increase) decrease in:
Trade accounts receivable	1,603,238	5,048,910
Other receivables	$ 91,454	(9,213)
Income taxes refundable		(153,799)
Inventories	$ 212,748	(884,491)
Prepaid expenses	$ 33,534	(62,309)
Other assets		16,341
Increase (decrease) in:
Accounts payable and accrued expenses	$ (288,394)	(1,692,249)
Accrued compensation and payroll taxes	(171,980)	(1,382,918)
Income taxes payable	22,523	(601,071)
Other noncurrent liabilities	(440,687)	(151,457)
Net cash provided by operating activities	16,217	743,226
Cash flows from investing activities:
Purchase of and deposits for the purchase of property and equipment	(299,973)	(927,983)
Investment in intangible assets	(16,960)	$ (25,922)
Proceeds from sale of property and equipment	4,618
Net cash used in investing activities	(312,315)	$ (953,905)
Cash flows from financing activities:
Payroll taxes withheld and remitted on share-based payments	$ (16,283)	(191,736)
Proceeds from note payable to bank		1,000,000
Principal payments on long-term debt and note payable to bank	$ (68,698)	$ (565,751)
Payments for financing costs	$ (21,856)
Repurchase of common stock		$ (373,982)
Impact of excess tax benefits from share-based compensation	$ (131)	78,192
Common stock dividends paid	(141,311)	(136,931)
Net cash used in financing activities	(248,279)	(190,208)
Net decrease in cash	(544,377)	(400,887)
Cash at beginning of period	1,083,072	1,089,507
Cash at end of period	$ 538,695	$ 688,620

Note 1 - General

Note 1 - General	3 Months Ended
	Jan. 31, 2016
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 ®

Note 2 - Stock Incentive Plans

Note 2 - Stock Incentive Plans and Other Share-based Compensation	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	(2) Stock Incentive Plans and Other Share-Based Compensation As of January 31, 2016, there were approximately 367,000 remaining shares available for grant under the Optical Cable Corporation Second Amended and Restated 2011 Stock Incentive Plan. Share-based compensation expense for employees, a consultant and non-employee Directors recognized in the condensed consolidated statements of operations for the three months ended January 31, 2016 and 2015 was $219,073 and $250,494, 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 of employees and consultants, and stock awards to non-employee members of the Board of Directors. 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. Restricted stock award activity during the three months ended January 31, 2016 consisted of 6,785 restricted shares withheld for taxes in connection with the vesting of restricted shares. 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 January 31, 2016, 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 3.1 year weighted-average period is approximately $2.7 million.

Note 3 - Allowance for Doubtful

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable	3 Months Ended
	Jan. 31, 2016
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 three months ended January 31, 2016 and 2015 follows: Three Months Ended January 31, 2016 2015 Balance at beginning of period $ 63,011 $ 92,988 Bad debt expense (recovery) 7,075 (26,411 ) Losses charged to allowance - (6,820 ) Balance at end of period $ 70,086 $ 59,757

Note 4 - Inventories

Note 4 - Inventories	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	(4) Inventories Inventories as of January 31, 2016 and October 31, 2015 consist of the following: January 31, October 31, 2016 2015 Finished goods $ 5,995,072 $ 6,116,989 Work in process 2,386,214 2,918,803 Raw materials 8,943,510 8,514,718 Production supplies 278,536 265,570 Total $ 17,603,332 $ 17,816,080

Note 5 - Product Warranties

Note 5 - Product Warranties	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	(5) Product Warranties As of January 31, 2016 and October 31, 2015, the Company’s accrual for estimated product warranty claims totaled $90,000 and $130,000, respectively, and is included in accounts payable and accrued expenses. Warranty claims expense for the three months ended January 31, 2016 and 2015 totaled $12,730 and $39,079, respectively. The following table summarizes the changes in the Company’s accrual for product warranties during the three months ended January 31, 2016 and 2015: Three Months Ended January 31, 2016 2015 Balance at beginning of period $ 130,000 $ 100,000 Liabilities accrued for warranties issued during the period 73,968 86,639 Warranty claims and costs paid during the period (52,730 ) (34,079 ) Changes in liability for pre-existing warranties during the period (61,238 ) (47,560 ) Balance at end of period $ 90,000 $ 105,000

Note 6 - Long-term Debt and Not

Note 6 - Long-term Debt and Note Payable to Bank	3 Months Ended
	Jan. 31, 2016
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”), 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 January 31, 2016 and October 31, 2015 consists of the following: January 31, October 31, 2016 2015 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 $ 5,323,685 $ 5,374,777 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 1,834,624 1,852,230 Total long-term debt 7,158,309 7,227,007 Less current installments 284,062 280,999 Long-term debt, excluding current installments $ 6,874,247 $ 6,946,008 The Commercial Loan with SunTrust Bank (“SunTrust”) 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 January 25, 2016, OCC entered into (i) a Modification of Commercial Note and Agreement to Commercial Note and a Second Amended and Restated Security Agreement (collectively, the “Commercial Loan Modification”) with SunTrust, and (ii) a Seventh Loan Modification Agreement (the “Real Estate Loan Modification”) with BNC. The Commercial Loan Modification and the Real Estate Loan Modification (together, the “Loan Modifications”) both provided a waiver of non-compliance of the debt service coverage ratio covenant the Company was required to comply with for the quarters ended October 31, 2015 and January 31, 2016. Further, the debt service coverage covenant was modified to an interest coverage covenant, as defined in the Loan Modifications, with a ratio of 1.25 to 1.00 for the quarter ending April 30, 2016, increasing to 1.50 to 1.00 for the quarters ending July 31, 2016 and October 31, 2016. Pursuant to the Commercial Loan Modification with SunTrust, the Company agreed to an increase in the interest rate on advances under the Commercial Loan from LIBOR plus 2.20% to LIBOR plus 2.75% and a covenant waiver fee of $25,000. Additionally, the Commercial Loan Modification limits certain capital expenditures and additional indebtedness, if any, and has placed certain limits on dividend payments and stock repurchases, in each case as defined in the Commercial Loan Modification. Pursuant to the Real Estate Loan Modification with BNC, OCC agreed to a covenant waiver fee of $10,000. Additionally, the Real Estate Loan Modification has similar limits on capital expenditures, as defined in the Real Estate Loan Modification, to those limits set forth in the Commercial Loan Modification with SunTrust. Advances under the Commercial Loan accrue interest at LIBOR plus 2.75% (resulting in a 3.18% rate at January 31, 2016). 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 January 31, 2016, the Company had $6.0 million of outstanding borrowings on its Commercial Loan and $1.6 million in available credit. As of October 31, 2015, the Company had outstanding borrowings of $6.0 million on its Commercial Loan and $2.5 million in available credit.

Note 7 - Fair Value Measurement

Note 7 - Fair Value Measurements	3 Months Ended
	Jan. 31, 2016
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 January 31, 2016 and October 31, 2015 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 January 31, 2016 and October 31, 2015. 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 Loss Per Share

Note 8 - Net Loss Per Share	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	(8) Net Loss Per Share Basic net loss per share excludes dilution and is computed by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net 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 loss of the Company. The following is a reconciliation of the numerators and denominators of the net loss per share computations for the periods presented: Three months ended January 31, 2016 2015 Net loss attributable to OCC (numerator) $ (1,745,021 ) $ (228,183 ) Shares (denominator) 6,260,676 6,277,105 Basic and diluted net loss per share $ (0.28 ) $ (0.04 ) Weighted average unvested shares as of January 31, 2016 and 2015 totaling 798,872 and 546,082, respectively, while issued and outstanding, were not included in the computation of basic and diluted net loss per share for the three months ended January 31, 2016 and 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).

Note 9 - Segment Information an

Note 9 - Segment Information and Business and Credit Concentrations	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	(9) 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 January 31, 2016 and October 31, 2015 have been adequately provided for in the condensed consolidated financial statements. For the three months ended January 31, 2016, 11.9% and 9.8% of consolidated net sales were attributable to two customers. For the three months ended January 31, 2015, 13.2% and 11.8% of consolidated net sales were attributable to the same two customers. For the three months ended January 31, 2016 and 2015, approximately 76% and 78%, respectively, of consolidated net sales were from customers in the United States, and approximately 24% and 22%, 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 ended January 31, 2016 and 2015, Centric Solutions generated revenues, net of intercompany sales, totaling $88,897 and $282,489, respectively, and operating losses of $92,691 and $100,308, respectively. Total assets of Centric Solutions of approximately $148,000 (net of intercompany amounts) are included in the total consolidated assets of the Company as of January 31, 2016.

Note 10 - Contingencies

Note 10 - Contingencies	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	(10) 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 11 - New Accounting Standa

Note 11 - New Accounting Standards Not yet Adopted	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	(11) New Accounting Standards Not Yet Adopted In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs Interest - Imputed Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued Accounting Standards Update 2015-17, Income Taxes 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 Doubtf18

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable (Tables)	3 Months Ended
	Jan. 31, 2016
Notes Tables
Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable [Table Text Block]	Three Months Ended January 31, 2016 2015 Balance at beginning of period $ 63,011 $ 92,988 Bad debt expense (recovery) 7,075 (26,411 ) Losses charged to allowance - (6,820 ) Balance at end of period $ 70,086 $ 59,757

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	3 Months Ended
	Jan. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	January 31, October 31, 2016 2015 Finished goods $ 5,995,072 $ 6,116,989 Work in process 2,386,214 2,918,803 Raw materials 8,943,510 8,514,718 Production supplies 278,536 265,570 Total $ 17,603,332 $ 17,816,080

Note 5 - Product Warranties (Ta

Note 5 - Product Warranties (Tables)	3 Months Ended
	Jan. 31, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three Months Ended January 31, 2016 2015 Balance at beginning of period $ 130,000 $ 100,000 Liabilities accrued for warranties issued during the period 73,968 86,639 Warranty claims and costs paid during the period (52,730 ) (34,079 ) Changes in liability for pre-existing warranties during the period (61,238 ) (47,560 ) Balance at end of period $ 90,000 $ 105,000

Note 6 - Long-term Debt and N21

Note 6 - Long-term Debt and Note Payable to Bank (Tables)	3 Months Ended
	Jan. 31, 2016
Notes Tables
Schedule of Debt [Table Text Block]	January 31, October 31, 2016 2015 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 $ 5,323,685 $ 5,374,777 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 1,834,624 1,852,230 Total long-term debt 7,158,309 7,227,007 Less current installments 284,062 280,999 Long-term debt, excluding current installments $ 6,874,247 $ 6,946,008

Note 8 - Net Loss Per Share (Ta

Note 8 - Net Loss Per Share (Tables)	3 Months Ended
	Jan. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended January 31, 2016 2015 Net loss attributable to OCC (numerator) $ (1,745,021 ) $ (228,183 ) Shares (denominator) 6,260,676 6,277,105 Basic and diluted net loss per share $ (0.28 ) $ (0.04 )

Note 2 - Stock Incentive Plan23

Note 2 - Stock Incentive Plans and Other Share-based Compensation (Details Textual) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
2015 Restated Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	367,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		6,785
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 36 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,700,000
Allocated Share-based Compensation Expense	$ 219,073	$ 250,494

Note 3 - Allowance for Doubtf24

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 ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Balance at beginning of period	$ 63,011	$ 92,988
Bad debt expense (recovery)	$ 7,075	(26,411)
Losses charged to allowance		(6,820)
Balance at end of period	$ 70,086	$ 59,757

Note 4 - Inventories - Componen

Note 4 - Inventories - Components of Inventories (Details) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Finished goods	$ 5,995,072	$ 6,116,989
Work in process	2,386,214	2,918,803
Raw materials	8,943,510	8,514,718
Production supplies	278,536	265,570
Total	$ 17,603,332	$ 17,816,080

Note 5 - Product Warranties (De

Note 5 - Product Warranties (Details Textual) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Oct. 31, 2015	Oct. 31, 2014
Accounts Payable and Accrued Liabilities [Member]
Product Warranty Accrual	$ 90,000		$ 130,000
Product Warranty Accrual	90,000	$ 105,000	$ 130,000	$ 100,000
Product Warranty Expense	$ 12,730	$ 39,079

Note 5 - Product Warranties - C

Note 5 - Product Warranties - Changes in Accrual for Product Warranties (Details) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Balance at beginning of period	$ 130,000	$ 100,000
Liabilities accrued for warranties issued during the period	73,968	86,639
Warranty claims and costs paid during the period	(52,730)	(34,079)
Changes in liability for pre-existing warranties during the period	(61,238)	(47,560)
Balance at end of period	$ 90,000	$ 105,000

Note 6 - Long-term Debt and N28

Note 6 - Long-term Debt and Note Payable to Bank (Details Textual)	Jan. 25, 2016USD ($)	Jan. 24, 2016	Jan. 31, 2016USD ($)	Oct. 31, 2016	Jul. 31, 2016	Apr. 30, 2016	Oct. 31, 2015USD ($)
Virginia Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage			4.25%				4.25%
The Commercial Loan [Member] | Scenario, Forecast [Member]
Debt Service Coverage Ratio, Minimum				1.5	1.5	1.25
The Commercial Loan [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate			2.75%
The Commercial Loan [Member] | Revolving Credit Facility [Member]
Long-term Line of Credit			$ 6,000,000
Line of Credit Facility, Remaining Borrowing Capacity			$ 1,600,000
The Commercial Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage			3.18%
North Carolina Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage			4.25%				4.25%
Certain Receivables Aged Ninety Days or Over [Member] | Revolving Credit Facility [Member] | The Commercial Loan [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
Certain Foreign Receivables [Member] | Revolving Credit Facility [Member] | The Commercial Loan [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			$ 1,000,000
Certain Raw Materials of Inventory [Member] | Revolving Credit Facility [Member] | The Commercial Loan [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	2.75%	2.20%
Line of Credit Facility, Commitment Fee Amount	$ 25,000
Revolving Credit Facility [Member] | The Commercial Loan [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 9,000,000
Long-term Line of Credit							$ 6,000,000
Line of Credit Facility, Remaining Borrowing Capacity							$ 2,500,000
Revolving Credit Facility [Member] | North Carolina Real Estate Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility, Commitment Fee Amount	$ 10,000

Note 6 - Long-term Debt and N29

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Virginia Real Estate Loan [Member]
Long-term Loan	$ 5,323,685	$ 5,374,777
North Carolina Real Estate Loan [Member]
Long-term Loan	1,834,624	1,852,230
Long-term Loan	7,158,309	7,227,007
Less current installments	284,062	280,999
Long-term debt, excluding current installments	$ 6,874,247	$ 6,946,008

Note 6 - Long-term Debt and N30

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) (Parentheticals) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2016	Oct. 31, 2015
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 Loss Per Share (De

Note 8 - Net Loss Per Share (Details Textual) - shares	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	798,872	546,082

Note 8 - Net Loss Per Share - C

Note 8 - Net Loss Per Share - Components of Reconciliation of Numerators and Denominators Net Loss Per Share (Details) - USD ($)	3 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Net loss attributable to OCC (numerator)	$ (1,745,021)	$ (228,183)
Shares (denominator) (in shares)	6,260,676	6,277,105
Basic and diluted net loss per share (in dollars per share)	$ (0.28)	$ (0.04)

Note 9 - Segment Information 33

Note 9 - Segment Information and Business and Credit Concentrations (Details Textual)	3 Months Ended
	Jan. 31, 2016USD ($)	Jan. 31, 2015USD ($)	Oct. 31, 2015USD ($)
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer One [Member]
Concentration Risk, Percentage	11.90%	13.20%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer Two [Member]
Concentration Risk, Percentage	9.80%	11.80%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Number of Customers		2
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES
Concentration Risk, Percentage	76.00%	78.00%
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Non-US [Member]
Concentration Risk, Percentage	24.00%	22.00%
Centric Solutions Limited Liability Company [Member]
Revenue, Net	$ 88,897	$ 282,489
Operating Income (Loss)	(92,691)	(100,308)
Assets	148,000
Revenue, Net	14,047,890	17,358,844
Operating Income (Loss)	(1,603,110)	$ (393,707)
Assets	$ 42,159,685		$ 45,028,818