Optical Cable (OCC) 10-Q 7 Jun 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Apr. 30, 2016	Jun. 03, 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)		7,094,072
Document Type	10-Q
Document Period End Date	Apr. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Apr. 30, 2016	Oct. 31, 2015
Current assets:
Cash	$ 660,678	$ 1,083,072
Trade accounts receivable, net of allowance for doubtful accounts of $75,030 at April 30, 2016 and $63,011 at October 31, 2015	8,867,183	9,189,498
Other receivables	57,486	134,428
Income taxes refundable	360,324	360,324
Inventories	16,542,028	17,816,080
Prepaid expenses	486,605	564,024
Total current assets	26,974,304	29,147,426
Property and equipment, net	14,251,613	13,903,919
Intangible assets, net	570,514	523,665
Other assets, net	398,258	1,453,808
Total assets	42,194,689	45,028,818
Current liabilities:
Current installments of long-term debt	287,937	$ 280,999
Current maturities of note payable to bank	500,000
Accounts payable and accrued expenses	4,217,905	$ 4,116,927
Accrued compensation and payroll taxes	1,147,709	1,222,728
Income taxes payable	34,407	22,498
Total current liabilities	6,187,958	5,643,152
Note payable to bank, excluding current maturities	5,500,000	6,000,000
Long-term debt, excluding current installments	6,800,083	6,946,008
Other noncurrent liabilities	119,475	551,108
Total liabilities	18,607,516	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 7,119,510 shares at April 30, 2016 and 7,059,548 shares at October 31, 2015	10,811,950	10,363,012
Retained earnings	12,775,223	16,267,595
Total shareholders’ equity attributable to Optical Cable Corporation	$ 23,587,173	26,630,607
Noncontrolling interest		(742,057)
Total shareholders’ equity	$ 23,587,173	25,888,550
Total liabilities and shareholders’ equity	$ 42,194,689	$ 45,028,818

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Apr. 30, 2016	Oct. 31, 2015
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)	7,119,510	7,059,548
Common stock, shares outstanding (in shares)	7,119,510	7,059,548

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Net sales	$ 16,340,153	$ 18,676,107	$ 30,388,043	$ 36,034,951
Cost of goods sold	11,788,858	13,006,796	22,334,317	24,980,249
Gross profit	4,551,295	5,669,311	8,053,726	11,054,702
Selling, general and administrative expenses	5,351,577	6,474,414	10,439,058	12,194,834
Royalty expense, net	51,551	34,111	66,329	90,274
Amortization of intangible assets	3,846	2,559	7,128	5,074
Loss from operations	(855,679)	(841,773)	(2,458,789)	(1,235,480)
Other expense, net:
Interest expense	(135,704)	(103,374)	(293,518)	(205,034)
Other, net	(1,270)	6,601	16,333	4,347
Other expense, net	(136,974)	(96,773)	(277,185)	(200,687)
Loss before income taxes	(992,653)	(938,546)	(2,735,974)	(1,436,167)
Income tax expense (benefit)	(9,531)	(430,673)	14,341	(676,117)
Net loss	$ (983,122)	(507,873)	(2,750,315)	(760,050)
Net loss attributable to noncontrolling interest		(17,729)	(22,172)	(41,723)
Net loss attributable to OCC	$ (983,122)	$ (490,144)	$ (2,728,143)	$ (718,327)
Net loss attributable to OCC per share: Basic and diluted (in dollars per share)	$ (0.15)	$ (0.08)	$ (0.43)	$ (0.12)
Cash dividends declared per common share (in dollars per share)		$ 0.02		$ 0.04

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Apr. 30, 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)	59,962
Share-based compensation, net	$ 449,470		449,470		449,470
Excess tax benefits from share-based compensation	$ (532)		(532)		$ (532)
Purchase of non-controlling interest in consolidated subsidiary		(764,229)	(764,229)	764,229
Net loss		(2,728,143)	(2,728,143)	$ (22,172)	$ (2,750,315)
Balances (in shares) at Apr. 30, 2016	7,119,510
Balances at Apr. 30, 2016	$ 10,811,950	$ 12,775,223	$ 23,587,173		$ 23,587,173

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Cash flows from operating activities:
Net loss	$ (2,750,315)	$ (760,050)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion	997,907	996,899
Bad debt expense (recovery)	$ 12,019	(17,264)
Deferred income tax expense		(259,289)
Share-based compensation expense	$ 514,337	637,694
Impact of excess tax benefits from share-based compensation	532	(85,870)
(Gain) loss on sale of property and equipment	(1,007)	5,815
(Increase) decrease in:
Trade accounts receivable	310,296	4,005,064
Other receivables	$ 76,942	30,204
Income taxes refundable		(89,768)
Inventories	$ 1,274,052	(1,159,150)
Prepaid expenses	$ 77,419	(98,129)
Other assets		16,341
Increase (decrease) in:
Accounts payable and accrued expenses	$ 595,812	(507,400)
Accrued compensation and payroll taxes	(75,019)	(1,601,204)
Income taxes payable	11,377	(612,181)
Other noncurrent liabilities	(446,515)	(152,082)
Net cash provided by operating activities	597,837	349,630
Cash flows from investing activities:
Purchase of and deposits for the purchase of property and equipment	(506,804)	(1,785,480)
Investment in intangible assets	(53,977)	(70,593)
Proceeds from sale of property and equipment	4,618	500
Net cash used in investing activities	(556,163)	(1,855,573)
Cash flows from financing activities:
Payroll taxes withheld and remitted on share-based payments	(64,867)	(220,872)
Proceeds from note payable to bank	6,000,000	2,500,000
Principal payments on long-term debt and note payable to bank	(6,138,987)	$ (633,984)
Payments for financing costs	$ (118,371)
Repurchase of common stock		$ (373,982)
Impact of excess tax benefits from share-based compensation	$ (532)	85,870
Common stock dividends paid	(141,311)	(272,146)
Net cash provided by (used in) financing activities	(464,068)	1,084,886
Net decrease in cash	(422,394)	(421,057)
Cash at beginning of period	1,083,072	1,089,507
Cash at end of period	$ 660,678	$ 668,450

Note 1 - General

Note 1 - General	6 Months Ended
	Apr. 30, 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	6 Months Ended
	Apr. 30, 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 April 30, 2016, there were approximately 301,000 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 and six months ended April 30, 2016 was $295,264 and $514,337, respectively, and for the three months and six months ended April 30, 2015 was $387,200 and $637,694, respectively. Share-based compensation expense is entirely related to expense recognized in connection with the vesting of restricted stock awards 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. During the three months ended April 30, 2016, stock awards totaling 86,296 shares to non-employee Directors under the Optical Cable Corporation Second Amended and Restated 2011 Stock Incentive Plan were approved by the Board of Directors of the Company. The shares are part of the non-employee Directors’ annual compensation for service on the Board of Directors. The Company recorded compensation expense totaling $201,070 during the three months and six months ended April 30, 2016 related to the grants to non-employee Directors. Restricted stock award activity during the six months ended April 30, 2016 consisted of restricted or other stock grants totaling 86,296 shares and 26,334 restricted or other shares withheld for taxes in connection with the vesting of restricted shares or other 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. Beginning with the 2016 grant, non-employee Directors have the option to surrender shares to pay for tax obligations resulting from any vesting shares as well. As of April 30, 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 2.9 year weighted-average period is approximately $2.5 million.

Note 3 - Allowance for Doubtful

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable	6 Months Ended
	Apr. 30, 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 six months ended April 30, 2016 and 2015 follows: Six Months Ended April 30, 2016 2015 Balance at beginning of period $ 63,011 $ 92,988 Bad debt expense (recovery) 12,019 (17,264 ) Losses charged to allowance - (6,820 ) Balance at end of period $ 75,030 $ 68,904

Note 4 - Inventories

Note 4 - Inventories	6 Months Ended
	Apr. 30, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	(4) Inventories Inventories as of April 30, 2016 and October 31, 2015 consist of the following: April 30, October 31, 2016 2015 Finished goods $ 5,124,103 $ 6,116,989 Work in process 2,430,164 2,918,803 Raw materials 8,728,557 8,514,718 Production supplies 259,204 265,570 Total $ 16,542,028 $ 17,816,080

Note 5 - Product Warranties

Note 5 - Product Warranties	6 Months Ended
	Apr. 30, 2016
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	(5) Product Warranties As of April 30, 2016 and October 31, 2015, the Company’s accrual for estimated product warranty claims totaled $75,000 and $130,000, respectively, and is included in accounts payable and accrued expenses. Warranty claims expense for the three months and six months ended April 30, 2016 totaled $10,952 and $23,682, respectively. Warranty claims expense for the three months and six months ended April 30, 2015 totaled $117,336 and $156,415, respectively. The following table summarizes the changes in the Company’s accrual for product warranties during the six months ended April 30, 2016 and 2015: Six Months Ended April 30, 2016 2015 Balance at beginning of period $ 130,000 $ 100,000 Liabilities accrued for warranties issued during the period 80,506 185,083 Warranty claims and costs paid during the period (78,682 ) (106,415 ) Changes in liability for pre-existing warranties during the period (56,824 ) (28,668 ) Balance at end of period $ 75,000 $ 150,000

Note 6 - Long-term Debt and Not

Note 6 - Long-term Debt and Note Payable to Bank	6 Months Ended
	Apr. 30, 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 and restated (the “Virginia Real Estate Loan”), a supplemental real estate term loan, as amended and restated (the “North Carolina Real Estate Loan”) and a revolving credit note. Both the Virginia Real Estate Loan and the North Carolina Real Estate Loan are with Bank of North Carolina (“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, all money, goods, machinery, equipment, fixtures, inventory, accounts, chattel paper, letter of credit rights, deposit accounts, commercial tort claims, documents, instruments, investment property and general intangibles now owned or hereafter acquired by the Company and wherever located, as well as a first lien deed of trust on the Company’s real property. Long-term debt as of April 30, 2016 and October 31, 2015 consists of the following: April 30, 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 $ 5,271,411 $ 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 1,816,609 1,852,230 Total long-term debt 7,088,020 7,227,007 Less current installments 287,937 280,999 Long-term debt, excluding current installments $ 6,800,083 $ 6,946,008 On April 26, 2016, OCC entered into a Credit Agreement and a Revolving Credit Note (“Revolver”) with BNC to provide the Company with a $7.0 million revolving line of credit (“Revolving Loan”) for the working capital needs of the Company and which replaced the entire indebtedness the Company had with SunTrust Bank (“SunTrust”). Under the Credit Agreement and Revolver, BNC agreed to provide the Company with one or more revolving loans in a collective maximum principal amount of $7.0 million until February 28, 2017, at which time the Revolving Loan will step down to a maximum principal amount of $6.5 million. On February 28, 2018, the maximum principal amount will again step down to $6.0 million and remain as such until the Revolving Loan terminates. The Company may borrow, repay, and reborrow at any time or from time to time while the Revolving Loan is in effect. The Company paid $70,000 to BNC as a fee for the Revolving Loan and incurred closing fees and costs of approximately $41,000. The Revolving Loan accrues interest at adjusted LIBOR plus 3.65% (resulting in a 4.13% rate at April 30, 2016). The Revolving Loan is payable in monthly payments of interest only with principal and any outstanding interest due and payable at maturity. Maturity for the Revolving Loan is February 28, 2018, unless extended. The Revolving Loan is secured by a perfected first lien security interest on all assets, including but not limited to, accounts, as-extracted collateral, chattel paper, commodity accounts, commodity contracts, deposit accounts, documents, equipment, fixtures, furniture, general intangibles, goods, instruments, inventory, investment property, letter of credit rights, payment intangibles, promissory notes, software and general tangible and intangible assets owned now or later acquired. The Revolving Loan is also cross-collateralized with the Company’s real property. The Revolving Loan replaced the Commercial Loan the Company had with SunTrust. Under the terms of the Commercial Loan, the Company could 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. Also on April 26, 2016, the Company, as borrower, and BNC, as lender, entered into an amended and restated Virginia Real Estate Loan and North Carolina Real Estate Loan in the amount of $5,271,411 and $1,816,609, respectively. As of April 30, 2016, the Company had $6.0 million of outstanding borrowings on its Revolving Loan and $1.0 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	6 Months Ended
	Apr. 30, 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 April 30, 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 April 30, 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	6 Months Ended
	Apr. 30, 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 Six months ended April 30, April 30, 2016 2015 2016 2015 Net loss attributable to OCC (numerator) $ (983,122 ) $ (490,144 ) $ (2,728,143 ) $ (718,327 ) Shares (denominator) 6,357,067 6,166,556 6,346,871 6,212,340 Basic and diluted net loss per share $ (0.15 ) $ (0.08 ) $ (0.43 ) $ (0.12 ) Weighted average unvested shares for the three months ended April 30, 2016 totaling 722,650, while issued and outstanding, were not included in the computation of basic and diluted net loss per share for the three months and six months ended April 30, 2016 (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 April 30, 2015 totaling 657,148 and 611,101, while issued and outstanding, were not included in the computation of basic and diluted net loss per share for the three months and six months ended April 30, 2015, respectively, (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	6 Months Ended
	Apr. 30, 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 April 30, 2016 and October 31, 2015 have been adequately provided for in the condensed consolidated financial statements. For the three months ended April 30, 2016, 9.3% and 14.1% of consolidated net sales were attributable to two customers. For the six months ended April 30, 2016, 9.5% and 13.1% of consolidated net sales were attributable to the same two customers. For the three months ended April 30, 2015, 14.7% and 14.8% of consolidated net sales were attributable to two customers. For the six months ended April 30, 2015, 14.0% and 13.4% of consolidated net sales were attributable to the same two customers. For the six months ended April 30, 2016 and 2015, approximately 78% and 79%, respectively, of consolidated net sales were from customers in the United States, and approximately 22% and 21%, respectively, were from customers outside of the United States. The Company has a single reportable segment for purposes of segment reporting.

Note 10 - Non-controlling Inter

Note 10 - Non-controlling Interest	6 Months Ended
	Apr. 30, 2016
Notes to Financial Statements
Noncontrolling Interest Disclosure [Text Block]	(10) Non-controlling Interest On August 1, 2008, OCC acquired 70% of the authorized membership interests of Centric Solutions LLC (“Centric Solutions”), a limited liability company focused on sales of turnkey cabling and connectivity solutions for the datacenter market. OCC consolidated Centric Solutions for financial reporting purposes and a non-controlling interest was recorded for the other members’ interests in the net assets and operations of Centric Solutions to the extent of the non-controlling members’ investment. Effective February 1, 2016, OCC purchased, for a nominal amount, the membership interest in Centric Solutions of one of the non-controlling members, and Centric Solutions purchased, for a nominal amount, and retired the membership units of the remaining non-controlling member. As a result, Centric Solutions became a wholly owned subsidiary of OCC. OCC continues to consolidate Centric Solutions for financial reporting purposes, however, beginning in the second quarter of fiscal year 2016, the Company no longer records a non-controlling interest in its condensed consolidated financial statements.

Note 11 - Contingencies

Note 11 - Contingencies	6 Months Ended
	Apr. 30, 2016
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	6 Months Ended
	Apr. 30, 2016
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 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606) Principle versus Agent Considerations Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2016-10 clarifies two aspects of Topic 606: identifying performance obligation and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in ASU 2016-08 and ASU 2016-10 are effective in conjunction with ASU 2015-14. The Company is currently evaluating the impact of the adoption of this guidance on the Company's results of operations, financial position and liquidity and its related financial statement disclosures. 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 In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 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 Doubtf19

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable (Tables)	6 Months Ended
	Apr. 30, 2016
Notes Tables
Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable [Table Text Block]	Six Months Ended April 30, 2016 2015 Balance at beginning of period $ 63,011 $ 92,988 Bad debt expense (recovery) 12,019 (17,264 ) Losses charged to allowance - (6,820 ) Balance at end of period $ 75,030 $ 68,904

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	6 Months Ended
	Apr. 30, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	April 30, October 31, 2016 2015 Finished goods $ 5,124,103 $ 6,116,989 Work in process 2,430,164 2,918,803 Raw materials 8,728,557 8,514,718 Production supplies 259,204 265,570 Total $ 16,542,028 $ 17,816,080

Note 5 - Product Warranties (Ta

Note 5 - Product Warranties (Tables)	6 Months Ended
	Apr. 30, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Six Months Ended April 30, 2016 2015 Balance at beginning of period $ 130,000 $ 100,000 Liabilities accrued for warranties issued during the period 80,506 185,083 Warranty claims and costs paid during the period (78,682 ) (106,415 ) Changes in liability for pre-existing warranties during the period (56,824 ) (28,668 ) Balance at end of period $ 75,000 $ 150,000

Note 6 - Long-term Debt and N22

Note 6 - Long-term Debt and Note Payable to Bank (Tables)	6 Months Ended
	Apr. 30, 2016
Notes Tables
Schedule of Debt [Table Text Block]	April 30, 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 $ 5,271,411 $ 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 1,816,609 1,852,230 Total long-term debt 7,088,020 7,227,007 Less current installments 287,937 280,999 Long-term debt, excluding current installments $ 6,800,083 $ 6,946,008

Note 8 - Net Loss Per Share (Ta

Note 8 - Net Loss Per Share (Tables)	6 Months Ended
	Apr. 30, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended Six months ended April 30, April 30, 2016 2015 2016 2015 Net loss attributable to OCC (numerator) $ (983,122 ) $ (490,144 ) $ (2,728,143 ) $ (718,327 ) Shares (denominator) 6,357,067 6,166,556 6,346,871 6,212,340 Basic and diluted net loss per share $ (0.15 ) $ (0.08 ) $ (0.43 ) $ (0.12 )

Note 2 - Stock Incentive Plan24

Note 2 - Stock Incentive Plans and Other Share-based Compensation (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Non-employee Directors [Member]
Allocated Share-based Compensation Expense			$ 201,070
Director [Member]
Allocated Share-based Compensation Expense	$ 201,070
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	86,296
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			86,296
Allocated Share-based Compensation Expense	$ 295,264	$ 387,200	$ 514,337	$ 637,694
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	301,000		301,000
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings			26,334
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 328 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,500,000		$ 2,500,000

Note 3 - Allowance for Doubtf25

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 ($)	6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Balance at beginning of period	$ 63,011	$ 92,988
Bad debt expense (recovery)	$ 12,019	(17,264)
Losses charged to allowance		(6,820)
Balance at end of period	$ 75,030	$ 68,904

Note 4 - Inventories - Componen

Note 4 - Inventories - Components of Inventories (Details) - USD ($)	Apr. 30, 2016	Oct. 31, 2015
Finished goods	$ 5,124,103	$ 6,116,989
Work in process	2,430,164	2,918,803
Raw materials	8,728,557	8,514,718
Production supplies	259,204	265,570
Total	$ 16,542,028	$ 17,816,080

Note 5 - Product Warranties (De

Note 5 - Product Warranties (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015	Oct. 31, 2015	Oct. 31, 2014
Accounts Payable and Accrued Liabilities [Member]
Standard and Extended Product Warranty Accrual	$ 75,000		$ 75,000		$ 130,000
Standard and Extended Product Warranty Accrual	75,000	$ 150,000	75,000	$ 150,000	$ 130,000	$ 100,000
Product Warranty Expense	$ 10,952	$ 117,336	$ 23,682	$ 156,415

Note 5 - Product Warranties - C

Note 5 - Product Warranties - Changes in Accrual for Product Warranties (Details) - USD ($)	6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Balance at beginning of period	$ 130,000	$ 100,000
Liabilities accrued for warranties issued during the period	80,506	185,083
Warranty claims and costs paid during the period	(78,682)	(106,415)
Changes in liability for pre-existing warranties during the period	(56,824)	(28,668)
Balance at end of period	$ 75,000	$ 150,000

Note 6 - Long-term Debt and N29

Note 6 - Long-term Debt and Note Payable to Bank (Details Textual) - USD ($)	Apr. 26, 2016	Apr. 30, 2016	Feb. 28, 2018	Feb. 28, 2017	Jan. 31, 2016	Oct. 31, 2015
North Carolina Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage		4.25%			4.25%	4.25%
Long-term Debt	$ 1,816,609	$ 1,816,609				$ 1,852,230
Virginia Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage		4.25%				4.25%
Long-term Debt	5,271,411	$ 5,271,411				$ 5,374,777
The Commercial Loan [Member] | Revolving Credit Facility [Member]
Long-term Line of Credit		6,000,000
Line of Credit Facility, Remaining Borrowing Capacity		$ 1,000,000
Revolving Credit Facility [Member] | BNC [Member] | Scenario, Forecast [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 6,000,000	$ 6,500,000
Revolving Credit Facility [Member] | BNC [Member] | Refinance Fee [Member]
Debt Issuance Costs, Net	70,000
Revolving Credit Facility [Member] | BNC [Member] | Closing Fees and Other Costs [Member]
Debt Issuance Costs, Net	$ 41,000
Revolving Credit Facility [Member] | BNC [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.65%
Revolving Credit Facility [Member] | BNC [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 7,000,000
Line of Credit Facility, Interest Rate at Period End		4.13%
Revolving Credit Facility [Member] | Certain Receivables Aged Ninety Days or Over [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
Revolving Credit Facility [Member] | Certain Foreign Receivables [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
Revolving Credit Facility [Member] | Certain Raw Materials of Inventory [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]
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
Long-term Debt		$ 7,088,020				$ 7,227,007

Note 6 - Long-term Debt and N30

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) - USD ($)	Apr. 30, 2016	Apr. 26, 2016	Oct. 31, 2015
Virginia Real Estate Loan [Member]
Long-term Debt	$ 5,271,411	$ 5,271,411	$ 5,374,777
North Carolina Real Estate Loan [Member]
Long-term Debt	1,816,609	$ 1,816,609	1,852,230
Long-term Debt	7,088,020		7,227,007
Less current installments	287,937		280,999
Long-term debt, excluding current installments	$ 6,800,083		$ 6,946,008

Note 6 - Long-term Debt and N31

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) (Parentheticals) - USD ($)	6 Months Ended	12 Months Ended
	Apr. 30, 2016	Oct. 31, 2015	Jan. 31, 2016
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%	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		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	722,650	657,148	722,650	611,101

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		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Net loss attributable to OCC (numerator)	$ (983,122)	$ (490,144)	$ (2,728,143)	$ (718,327)
Shares (denominator) (in shares)	6,357,067	6,166,556	6,346,871	6,212,340
Basic and diluted net loss per share (in dollars per share)	$ (0.15)	$ (0.08)	$ (0.43)	$ (0.12)

Note 9 - Segment Information 34

Note 9 - Segment Information and Business and Credit Concentrations (Details Textual) - Sales Revenue, Net [Member]	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk, Percentage	9.30%	14.70%	9.50%	14.00%
Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk, Percentage	14.10%	14.80%	13.10%	13.40%
Customer Concentration Risk [Member]
Concentration Risk, Number of Customers	2	2	2	2
Geographic Concentration Risk [Member] | UNITED STATES
Concentration Risk, Percentage			78.00%	79.00%
Geographic Concentration Risk [Member] | Non-US [Member]
Concentration Risk, Percentage			22.00%	21.00%

Note 10 - Non-controlling Int35

Note 10 - Non-controlling Interest (Details Textual)	Aug. 01, 2008
Centric Solutions Limited Liability Company [Member]
Business Acquisition, Percentage of Voting Interests Acquired	70.00%