Optical Cable (OCC) 10-Q 16 Sep 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jul. 31, 2019	Sep. 11, 2019
Document Information [Line Items]
Entity Central Index Key	0001000230
Entity Shell Company	false
Entity Registrant Name	OPTICAL CABLE CORP
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Small Business	true
Entity Emerging Growth Company	false
Document Quarterly Report	true
Document Transition Report	false
Document Type	10-Q
Document Period End Date	Jul. 31, 2019
Entity File Number	0-27022
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	54-1237042
Entity Address, Address Line One	5290 Concourse Drive
Entity Address, City or Town	Roanoke
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	24019
City Area Code	540
Local Phone Number	265-0690
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	OCC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		7,459,056

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jul. 31, 2019	Oct. 31, 2018
Current assets:
Cash	$ 1,099,612	$ 177,413
Trade accounts receivable, net of allowance for doubtful accounts of $95,664 at July 31, 2019 and $64,242 at October 31, 2018	9,964,662	12,832,890
Other receivables	35,913	61,951
Inventories	18,812,511	17,474,755
Prepaid expenses and other assets	437,993	500,021
Total current assets	30,350,691	31,047,030
Property and equipment, net	10,420,001	11,204,639
Income taxes refundable - noncurrent	50,007	49,281
Intangible assets, net	663,966	635,035
Other assets, net	33,754	162,475
Total assets	41,518,419	43,098,460
Current liabilities:
Current installments of long-term debt	768,201	260,954
Note payable to bank - current	5,650,000	0
Accounts payable and accrued expenses	5,853,461	3,256,153
Accrued compensation and payroll taxes	1,842,635	3,489,070
Income taxes payable	21,215	21,666
Total current liabilities	14,135,512	7,027,843
Note payable to bank - noncurrent	0	3,000,000
Long-term debt, excluding current installments	5,456,134	6,158,630
Other noncurrent liabilities	70,347	101,150
Total liabilities	19,661,993	16,287,623
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 7,459,056 shares at July 31, 2019 and 7,694,387 shares at October 31, 2018	13,814,038	13,816,140
Retained earnings	8,042,388	12,994,697
Total shareholders’ equity	21,856,426	26,810,837
Commitments and contingencies
Total liabilities and shareholders’ equity	$ 41,518,419	$ 43,098,460

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Jul. 31, 2019	Oct. 31, 2018
Allowance for doubtful accounts	$ 95,664	$ 64,242
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, no 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)	7,459,056	7,694,387
Common stock, shares outstanding (in shares)	7,459,056	7,694,387

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Net sales	$ 17,367,068	$ 23,116,584	$ 53,074,911	$ 67,555,313
Cost of goods sold	12,875,614	16,090,042	39,711,764	46,343,676
Gross profit	4,491,454	7,026,542	13,363,147	21,211,637
Selling, general and administrative expenses	5,418,438	6,370,244	17,968,897	19,328,716
Royalty expense (income), net	216	(12,524)	(1,272)	(29,643)
Amortization of intangible assets	9,597	9,286	28,494	25,578
Income (loss) from operations	(936,797)	659,536	(4,632,972)	1,886,986
Other expense, net:
Interest expense	(135,648)	(194,262)	(381,819)	(475,555)
Other, net	10	(9,461)	(7,270)	1,332
Other expense, net	(135,638)	(203,723)	(389,089)	(474,223)
Income (loss) before income taxes	(1,072,435)	455,813	(5,022,061)	1,412,763
Income tax expense (benefit)	12,859	17,460	(9,322)	(6,320)
Net income (loss)	$ (1,085,294)	$ 438,353	$ (5,012,739)	$ 1,419,083
Net income (loss) per share: Basic and diluted (in dollars per share)	$ (0.15)	$ 0.06	$ (0.68)	$ 0.19

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Oct. 31, 2017	7,315,605
Balances at Oct. 31, 2017	$ 11,762,021	$ 11,927,501	$ 23,689,522
Share-based compensation, net (in shares)	359,333
Share-based compensation, net	$ (22,145)	0	(22,145)
Net loss	$ 0	(410,135)	(410,135)
Share-based compensation, net (in shares)	359,333
Balances (in shares) at Jan. 31, 2018	7,674,938
Balances at Jan. 31, 2018	$ 11,739,876	11,517,366	23,257,242
Balances (in shares) at Oct. 31, 2017	7,315,605
Balances at Oct. 31, 2017	$ 11,762,021	11,927,501	23,689,522
Net loss			1,419,083
Balances (in shares) at Jul. 31, 2018	7,694,640
Balances at Jul. 31, 2018	$ 12,952,995	13,346,537	26,299,532
Balances (in shares) at Jan. 31, 2018	7,674,938
Balances at Jan. 31, 2018	$ 11,739,876	11,517,366	23,257,242
Share-based compensation, net (in shares)	21,149
Share-based compensation, net	$ 559,929	0	559,929
Repurchase and retirement of common stock (at cost) (in shares)	(19)
Repurchase and retirement of common stock (at cost)	$ 0	(47)	(47)
Net loss	$ 0	1,390,865	1,390,865
Share-based compensation, net (in shares)	21,149
Balances (in shares) at Apr. 30, 2018	7,696,068
Balances at Apr. 30, 2018	$ 12,299,805	12,908,184	25,207,989
Share-based compensation, net (in shares)	(1,428)
Share-based compensation, net	$ 653,190	0	653,190
Net loss	$ 0	438,353	438,353
Share-based compensation, net (in shares)	(1,428)
Balances (in shares) at Jul. 31, 2018	7,694,640
Balances at Jul. 31, 2018	$ 12,952,995	13,346,537	26,299,532
Balances (in shares) at Oct. 31, 2018	7,694,387
Balances at Oct. 31, 2018	$ 13,816,140	12,994,697	26,810,837
Adoption of accounting standard ASC 606	$ 0	61,763	61,763
Share-based compensation, net (in shares)	(257,222)
Share-based compensation, net	$ (66,327)	0	(66,327)
Repurchase and retirement of common stock (at cost) (in shares)	(258)
Repurchase and retirement of common stock (at cost)	$ 0	(1,257)	(1,257)
Net loss	$ 0	(3,310,020)	(3,310,020)
Share-based compensation, net (in shares)	(257,222)
Balances at Jan. 31, 2019	$ 13,749,813	9,745,183	23,494,996
Balances (in shares) at Oct. 31, 2018	7,694,387
Balances at Oct. 31, 2018	$ 13,816,140	12,994,697	26,810,837
Net loss			(5,012,739)
Balances (in shares) at Jul. 31, 2019	7,459,056
Balances at Jul. 31, 2019	$ 13,814,038	8,042,388	21,856,426
Balances at Jan. 31, 2019	$ 13,749,813	9,745,183	23,494,996
Share-based compensation, net (in shares)	23,628
Share-based compensation, net	$ 27,169	0	27,169
Net loss	$ 0	(617,425)	(617,425)
Share-based compensation, net (in shares)	23,628
Balances (in shares) at Apr. 30, 2019	7,460,535
Balances at Apr. 30, 2019	$ 13,776,982	9,127,758	22,904,740
Share-based compensation, net (in shares)	(1,461)
Share-based compensation, net	$ 37,056	0	37,056
Repurchase and retirement of common stock (at cost) (in shares)	(18)
Repurchase and retirement of common stock (at cost)	$ 0	(76)	(76)
Net loss	$ 0	(1,085,294)	(1,085,294)
Share-based compensation, net (in shares)	(1,461)
Balances (in shares) at Jul. 31, 2019	7,459,056
Balances at Jul. 31, 2019	$ 13,814,038	$ 8,042,388	$ 21,856,426

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ (5,012,739)	$ 1,419,083
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,294,062	1,340,787
Bad debt expense (recovery)	56,483	(29,247)
Share-based compensation expense	941,253	1,361,475
Loss on sale of property and equipment	2,058	7,849
(Increase) decrease in:
Trade accounts receivable	2,811,745	(5,617,986)
Other receivables	26,038	12,849
Inventories	(1,337,756)	(531,995)
Prepaid expenses and other assets	113,565	(61,993)
Income taxes refundable - noncurrent	(726)	(44,973)
Other assets	21,473	0
Increase (decrease) in:
Accounts payable and accrued expenses	2,714,909	1,474,746
Accrued compensation and payroll taxes	(1,646,435)	1,727,689
Income taxes payable	(451)	12,958
Other noncurrent liabilities	(30,803)	(25,386)
Net cash provided by (used in) operating activities	(47,324)	1,045,856
Cash flows from investing activities:
Purchase of and deposits for the purchase of property and equipment	(483,115)	(523,480)
Investment in intangible assets	(57,425)	(21,806)
Net cash used in investing activities	(540,540)	(545,286)
Cash flows from financing activities:
Payroll taxes withheld and remitted on share-based payments	(943,355)	(170,501)
Proceeds from notes payable to bank	2,850,000	8,550,000
Principal payments on long-term debt and notes payable to bank	(395,249)	(8,671,261)
Payments for financing costs	0	(62,802)
Repurchase of common stock	(1,333)	(47)
Net cash provided by (used in) financing activities	1,510,063	(354,611)
Net increase in cash	922,199	145,959
Cash at beginning of period	177,413	891,169
Cash at end of period	$ 1,099,612	$ 1,037,128

Note 1 - General

Note 1 - General	9 Months Ended
	Jul. 31, 2019
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 ® 10 X. not nine July 31, 2019 not October 31, 2019 may 10 October 31, 2018 10 not 10 October 31, 2018. In May 2014, 2014 09, Revenue from Contracts with Customers 2014 09” 2014 09, 606” 606 November 1, 2018 not November 1, 2018. November 1, 2018 606, not 606 not November 1, 2018. 10 In August 2016, 2016 15, Statement of Cash Flows (Topic 230 2016 15” 2016 15 eight 2016 15 December 15, 2017, 2016 15 November 1, 2018. not In October 2016, 2016 16, Income Taxes (Topic 740 2016 16” 2016 16 third 2016 16 December 15, 2017, 2016 16 November 1, 2018. not

Note 2 - Stock Incentive Plans

Note 2 - Stock Incentive Plans and Other Share-based Compensation	9 Months Ended
	Jul. 31, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	( 2 Stock Incentive Plans and Other Share-Based Compensation As of July 31, 2019, 2017 “2017 Share-based compensation expense for employees, a consultant and non-employee Directors recognized in the condensed consolidated statements of operations for the three nine July 31, 2019 three nine July 31, 2018 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, Restricted stock award activity during the nine July 31, 2019 As of July 31, 2019,

Note 3 - Allowance for Doubtful

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable	9 Months Ended
	Jul. 31, 2019
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 July 31, 2019 2018 Nine Months Ended July 31, 2019 2018 Balance at beginning of period $ 64,242 $ 87,446 Bad debt expense 56,483 (29,247 ) Losses charged to allowance (25,061 ) (4,648 ) Balance at end of period $ 95,664 $ 53,551

Note 4 - Inventories

Note 4 - Inventories	9 Months Ended
	Jul. 31, 2019
Notes to Financial Statements
Inventory Disclosure [Text Block]	( 4 Inventories Inventories as of July 31, 2019 October 31, 2018 July 31, October 31, 2019 2018 Finished goods $ 5,965,837 $ 5,454,629 Work in process 4,169,232 3,877,670 Raw materials 8,385,386 7,871,145 Production supplies 292,056 271,311 Total $ 18,812,511 $ 17,474,755

Note 5 - Product Warranties

Note 5 - Product Warranties	9 Months Ended
	Jul. 31, 2019
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	( 5 Product Warranties As of July 31, 2019 October 31, 2018, three nine July 31, 2019 three nine July 31, 2018 The following table summarizes the changes in the Company’s accrual for product warranties during the nine July 31, 2019 2018: Nine Months Ended July 31, 2019 2018 Balance at beginning of period $ 180,000 $ 180,000 Liabilities accrued for warranties issued during the period 222,520 165,269 Warranty claims and costs paid during the period (205,629 ) (157,377 ) Changes in liability for pre-existing warranties during the period 3,109 (22,892 ) Balance at end of period $ 200,000 $ 165,000

Note 6 - Long-term Debt and Not

Note 6 - Long-term Debt and Notes Payable to Bank	9 Months Ended
	Jul. 31, 2019
Notes to Financial Statements
Long-term Debt [Text Block]	( 6 Long-term Debt and Notes 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 and related agreements (collectively, the “Revolver”). Both the Virginia Real Estate Loan and the North Carolina Real Estate Loan are with Pinnacle Bank (“Pinnacle”), have a fixed interest rate of 3.95% and are secured by a first first Long-term debt as of July 31, 2019 October 31, 2018 July 31, October 31, 2019 2018 Virginia Real Estate Loan ($6.5 million original principal) payable in monthly installments of $31,812, including interest (at 3.95%), with final payment of $3,644,211 due May 1, 2024 $ 4,629,043 $ 4,774,252 North Carolina Real Estate Loan ($2.24 million original principal) payable in monthly installments of $10,963, including interest (at 3.95%), with final payment of $1,255,850 due May 1, 2024 1,595,292 1,645,332 Total long-term debt 6,224,335 6,419,584 Less current installments 768,201 260,954 Long-term debt, excluding current installments $ 5,456,134 $ 6,158,630 As of July 31, 2019, one $7.0 July 31, 2019. may The applicable margin in the Revolver has a floor on the interest rate such that the rate will never be less than 2.50% per annum. As of July 31, 2019, July 31, 2019). On April 30, 2019, April 26, 2016 April 26, 2016. June 30, 2020. On September 11, 2019, April 26, 2016 April 26, 2016. Pursuant to the Agreement, the Company has agreed to (i) reduce the total aggregate amount of funds available for lending under the Credit Agreement from $7.0 November 29, 2019 $250,000; September 10, 2019. July 31, 2019. Except as expressly amended and modified, all other terms and conditions of the Credit Agreement remain unaltered and in effect. The Revolver is secured by a perfected first not The terms of OCC’s credit facilities with Pinnacle require the Company to comply, on an annual basis, with specific financial covenants including a fixed charge coverage ratio. The Company is required to maintain a fixed charge coverage ratio of not 1.0. first nine 2019, not October 31, 2019 two Except as modified relative to the quarter ended July 31, 2019, not 1.0. June 30, 2020, $5.7 July 31, 2019. July 31, 2019, 1.0. one July 31, 2019, $5.7 As of July 31, 2019, October 31, 2018,

Note 7 - Fair Value Measurement

Note 7 - Fair Value Measurements	9 Months Ended
	Jul. 31, 2019
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, 2019 October 31, 2018 July 31, 2019 October 31, 2018.

Note 8 - Net Income (Loss) Per

Note 8 - Net Income (Loss) Per Share	9 Months Ended
	Jul. 31, 2019
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, 2019 2018 2019 2018 Net income (loss) (numerator) $ (1,085,294 ) $ 438,353 $ (5,012,739 ) $ 1,419,083 Shares (denominator) 7,319,274 7,696,068 7,409,465 7,559,340 Basic and diluted net income (loss) per share $ (0.15 ) $ 0.06 $ (0.68 ) $ 0.19 Weighted average unvested shares for the three nine July 31, 2019 not three nine July 31, 2019 (

Note 9 - Segment Information an

Note 9 - Segment Information and Business and Credit Concentrations	9 Months Ended
	Jul. 31, 2019
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 July 31, 2019 For the three July 31, 2019, one nine July 31, 2019, three July 31, 2018, nine July 31, 2018, The Company has a single reportable segment for purposes of segment reporting.

Note 10 - Revenue Recognition

Note 10 - Revenue Recognition	9 Months Ended
	Jul. 31, 2019
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	( 10 Revenue Recognition Revenues consist of product sales that are recognized at a specific point in time under the core principle of recognizing revenue when control transfers to the customer. The Company considers customer purchase orders, governed by master sales agreements or the Company’s standard terms and conditions, to be the contract with the customer. For each contract, the promise to transfer the control of the products, each of which is individually distinct, is considered to be the identified performance obligation. The Company evaluates each customer’s credit risk when determining whether to accept a contract. In determining transaction prices, the Company evaluates whether fixed order prices are subject to adjustment to determine the net consideration to which the Company expects to be entitled. Contracts do not 30 90 not not not The Company recognizes revenue at the point in time when products are shipped or delivered from its manufacturing facility to its customer, in accordance with the agreed upon shipping terms. Since the Company typically invoices the customer at the same time that performance obligations are satisfied, no July 31, 2019 November 1, 2018. Sales to certain customers are made pursuant to agreements that provide price adjustments and limited return rights with respect to the Company’s products. The Company maintains a reserve for estimated future price adjustment claims, rebates and returns as a refund liability. The Company’s refund liability was $221,045 as of July 31, 2019 November 1, 2018. The Company offers standard product warranty coverage which provides assurance that its products will conform to contractually agreed-upon specifications for a limited period from the date of shipment. Separately-priced warranty coverage is not no The Company accounts for shipping and handling activities related to contracts with customers as a cost to fulfill its promise to transfer control of the related product. Shipping and handling costs are included in selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. The Company incurs sales commissions to acquire customer contracts that are directly attributable to the contracts. The commissions are expensed as selling expenses during the period that the related products are transferred to customers. Disaggregation of Revenue The following table presents net sales attributable to the United States and all other countries in total for the three nine July 31, 2019 2018: Three months ended Nine months ended July 31, July 31, 2019 2018 2019 2018 United States $ 14,421,221 $ 20,280,006 $ 43,460,603 $ 58,013,199 Outside the United States 2,945,847 2,836,578 9,614,308 9,542,114 Total net sales $ 17,367,068 $ 23,116,584 $ 53,074,911 $ 67,555,313

Note 11 - Contingencies

Note 11 - Contingencies	9 Months Ended
	Jul. 31, 2019
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

Note 12 - New Accounting Standa

Note 12 - New Accounting Standards Not Yet Adopted	9 Months Ended
	Jul. 31, 2019
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	( 12 New Accounting Standards Not In February 2016, 2016 02, Leases 2017 13, 2018 10, 2018 11, 2018 20 2019 01 842” 842 842 842 December 15, 2018, may two not In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 2018 07” 2018 07 718 2018 07 718 not 1 2 Revenue from Contracts with Customers 606 2018 07 December 15, 2018, 2018 07 not In June 2018, 2018 08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made 2018 08” 2018 08 not 2018 08 not 2018 08 December 15, 2018, 2018 08 not In July 2019, 2019 07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33 10532, 33 10231 33 10442, 2019 07” 2019 07 not 2019 07, There are no not

Note 3 - Allowance for Doubtf_2

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable (Tables)	9 Months Ended
	Jul. 31, 2019
Notes Tables
Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable [Table Text Block]	Nine Months Ended July 31, 2019 2018 Balance at beginning of period $ 64,242 $ 87,446 Bad debt expense 56,483 (29,247 ) Losses charged to allowance (25,061 ) (4,648 ) Balance at end of period $ 95,664 $ 53,551

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	9 Months Ended
	Jul. 31, 2019
Notes Tables
Schedule of Inventory, Current [Table Text Block]	July 31, October 31, 2019 2018 Finished goods $ 5,965,837 $ 5,454,629 Work in process 4,169,232 3,877,670 Raw materials 8,385,386 7,871,145 Production supplies 292,056 271,311 Total $ 18,812,511 $ 17,474,755

Note 5 - Product Warranties (Ta

Note 5 - Product Warranties (Tables)	9 Months Ended
	Jul. 31, 2019
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Nine Months Ended July 31, 2019 2018 Balance at beginning of period $ 180,000 $ 180,000 Liabilities accrued for warranties issued during the period 222,520 165,269 Warranty claims and costs paid during the period (205,629 ) (157,377 ) Changes in liability for pre-existing warranties during the period 3,109 (22,892 ) Balance at end of period $ 200,000 $ 165,000

Note 6 - Long-term Debt and N_2

Note 6 - Long-term Debt and Notes Payable to Bank (Tables)	9 Months Ended
	Jul. 31, 2019
Notes Tables
Schedule of Debt [Table Text Block]	July 31, October 31, 2019 2018 Virginia Real Estate Loan ($6.5 million original principal) payable in monthly installments of $31,812, including interest (at 3.95%), with final payment of $3,644,211 due May 1, 2024 $ 4,629,043 $ 4,774,252 North Carolina Real Estate Loan ($2.24 million original principal) payable in monthly installments of $10,963, including interest (at 3.95%), with final payment of $1,255,850 due May 1, 2024 1,595,292 1,645,332 Total long-term debt 6,224,335 6,419,584 Less current installments 768,201 260,954 Long-term debt, excluding current installments $ 5,456,134 $ 6,158,630

Note 8 - Net Income (Loss) Pe_2

Note 8 - Net Income (Loss) Per Share (Tables)	9 Months Ended
	Jul. 31, 2019
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended Nine months ended July 31, July 31, 2019 2018 2019 2018 Net income (loss) (numerator) $ (1,085,294 ) $ 438,353 $ (5,012,739 ) $ 1,419,083 Shares (denominator) 7,319,274 7,696,068 7,409,465 7,559,340 Basic and diluted net income (loss) per share $ (0.15 ) $ 0.06 $ (0.68 ) $ 0.19

Note 10 - Revenue Recognition (

Note 10 - Revenue Recognition (Tables)	9 Months Ended
	Jul. 31, 2019
Notes Tables
Revenue from External Customers by Geographic Areas [Table Text Block]	Three months ended Nine months ended July 31, July 31, 2019 2018 2019 2018 United States $ 14,421,221 $ 20,280,006 $ 43,460,603 $ 58,013,199 Outside the United States 2,945,847 2,836,578 9,614,308 9,542,114 Total net sales $ 17,367,068 $ 23,116,584 $ 53,074,911 $ 67,555,313

Note 1 - General (Details Textu

Note 1 - General (Details Textual)	Nov. 01, 2018USD ($)
Accounting Standards Update 2014-09 [Member]
Cumulative Effect on Retained Earnings, Net of Tax, Total	$ 61,763

Note 2 - Stock Incentive Plan_2

Note 2 - Stock Incentive Plans and Other Share-based Compensation (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Share-based Payment Arrangement, Expense	$ 42,549	$ 658,616	$ 941,253	$ 1,361,475
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			30,360
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period			4,745
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation			260,670
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition			1 year 4 months 24 days
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 386,000		$ 386,000
The 2017 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	441,000		441,000

Note 3 - Allowance for Doubtf_3

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, 2019	Jul. 31, 2018
Balance at beginning of period	$ 64,242	$ 87,446
Bad debt expense (recovery)	56,483	(29,247)
Losses charged to allowance	(25,061)	(4,648)
Balance at end of period	$ 95,664	$ 53,551

Note 4 - Inventories - Componen

Note 4 - Inventories - Components of Inventories (Details) - USD ($)	Jul. 31, 2019	Oct. 31, 2018
Finished goods	$ 5,965,837	$ 5,454,629
Work in process	4,169,232	3,877,670
Raw materials	8,385,386	7,871,145
Production supplies	292,056	271,311
Total	$ 18,812,511	$ 17,474,755

Note 5 - Product Warranties (De

Note 5 - Product Warranties (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018	Oct. 31, 2017
Standard and Extended Product Warranty Accrual, Ending Balance	$ 200,000	$ 165,000	$ 200,000	$ 165,000	$ 180,000	$ 180,000
Product Warranty Expense	69,075	$ 8,196	225,629	$ 142,377
Accounts Payable and Accrued Liabilities [Member]
Standard and Extended Product Warranty Accrual, Ending Balance	$ 200,000		$ 200,000		$ 180,000

Note 5 - Product Warranties - C

Note 5 - Product Warranties - Changes in Accrual for Product Warranties (Details) - USD ($)	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Balance at beginning of period	$ 180,000	$ 180,000
Liabilities accrued for warranties issued during the period	222,520	165,269
Warranty claims and costs paid during the period	(205,629)	(157,377)
Changes in liability for pre-existing warranties during the period	3,109	(22,892)
Balance at end of period	$ 200,000	$ 165,000

Note 6 - Long-term Debt and N_3

Note 6 - Long-term Debt and Notes Payable to Bank (Details Textual) - Pinnacle Financial Partners [Member] $ in Millions	Sep. 11, 2019USD ($)	Jul. 31, 2019USD ($)	Oct. 31, 2018USD ($)
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 7
Debt Instrument, Interest Rate, Effective Percentage		4.90%
Debt Instrument, Current Ratio		2.1
Long-term Line of Credit, Total		$ 5.7	$ 3
Line of Credit Facility, Remaining Borrowing Capacity		$ 1.3	$ 4
Revolving Credit Facility [Member] | Subsequent Event [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 6.5
Line of Credit Facility, Increase (Decrease), Net, Total	$ (500,000)
Debt Instrument, Covenant, Fixed Charge Coverage Ratio	1.25
Debt Instrument, Covenant, Current Ratio	3
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument, Interest Rate, Effective Percentage		2.50%
Revolving Credit Facility [Member] | Prime Rate [Member] | Subsequent Event [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
Virginia Real Estate Loan and North Carolina Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage		3.95%

Note 6 - Long-term Debt and N_4

Note 6 - Long-term Debt and Notes Payable to Bank - Long-term Debt (Details) - USD ($)	Jul. 31, 2019	Oct. 31, 2018
Long-term Loan	$ 6,224,335	$ 6,419,584
Less current installments	768,201	260,954
Long-term debt, excluding current installments	5,456,134	6,158,630
Virginia Real Estate Loan [Member]
Long-term Loan	4,629,043	4,774,252
North Carolina Real Estate Loan [Member]
Long-term Loan	$ 1,595,292	$ 1,645,332

Note 6 - Long-term Debt and N_5

Note 6 - Long-term Debt and Notes Payable to Bank - Long-term Debt (Details) (Parentheticals) - USD ($)	9 Months Ended	12 Months Ended
	Jul. 31, 2019	Oct. 31, 2018
Virginia Real Estate Loan [Member]
Original principal	$ 6,500,000	$ 6,500,000
Monthly installments	$ 31,812	$ 31,812
Debt Instrument, Interest Rate, Stated Percentage	3.95%	3.95%
Final payment	$ 3,644,211	$ 3,644,211
Maturity date	May 1, 2024	May 1, 2024
North Carolina Real Estate Loan [Member]
Original principal	$ 2,240,000	$ 2,240,000
Monthly installments	$ 10,963	$ 10,963
Debt Instrument, Interest Rate, Stated Percentage	3.95%	3.95%
Final payment	$ 1,255,850	$ 1,255,850
Maturity date	May 1, 2024	May 1, 2024

Note 8 - Net Income (Loss) Pe_3

Note 8 - Net Income (Loss) Per Share (Details Textual) - shares	3 Months Ended	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	141,257	124,242

Note 8 - Net Income (Loss) Pe_4

Note 8 - Net Income (Loss) Per Share - Components of Reconciliation of Numerators and Denominators Net Loss Per Share (Details) - USD ($)	3 Months Ended						9 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Net income (loss) (numerator)	$ (1,085,294)	$ (617,425)	$ (3,310,020)	$ 438,353	$ 1,390,865	$ (410,135)	$ (5,012,739)	$ 1,419,083
Shares (denominator) (in shares)	7,319,274			7,696,068			7,409,465	7,559,340
Basic and diluted net income (loss) per share (in dollars per share)	$ (0.15)			$ 0.06			$ (0.68)	$ 0.19

Note 9 - Segment Information _2

Note 9 - Segment Information and Business and Credit Concentrations (Details Textual)	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Number of Reportable Segments			1
Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Concentration Risk, Number of Customers	1	2	2	1
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member]
Concentration Risk, Percentage	15.10%	10.20%	14.50%	36.70%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Two [Member]
Concentration Risk, Percentage		35.50%	14.10%

Note 10 - Revenue Recognition_2

Note 10 - Revenue Recognition (Details Textual) - USD ($)	Jul. 31, 2019	Nov. 01, 2018
Contract with Customer, Liability, Total	$ 40,946	$ 123,979
Contract with Customer, Refund Liability, Total	$ 221,045	$ 298,577

Note 10 - Revenue Recognition -

Note 10 - Revenue Recognition - Revenue Attributed to United States and All Other Countries (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Net sales	$ 17,367,068	$ 23,116,584	$ 53,074,911	$ 67,555,313
UNITED STATES
Net sales	14,421,221	20,280,006	43,460,603	58,013,199
Non-US [Member]
Net sales	$ 2,945,847	$ 2,836,578	$ 9,614,308	$ 9,542,114