Optical Cable (OCC) 10-Q 11 Sep 24 2024 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jul. 31, 2024	Sep. 04, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2024
Document Transition Report	false
Entity File Number	0-27022
Entity Registrant Name	OPTICAL CABLE CORPORATION
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 Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		8,220,344
Entity Central Index Key	0001000230
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jul. 31, 2024	Oct. 31, 2023
Current assets:
Cash	$ 796,735	$ 1,468,709
Trade accounts receivable, net of allowance for credit losses of $70,742 at July 31, 2024 and $71,189 at October 31, 2023	8,588,865	8,727,810
Income taxes refundable - current	80,797	81,844
Other receivables	40,581	397,758
Inventories	19,259,308	23,766,326
Prepaid expenses and other assets	424,239	595,469
Total current assets	29,190,525	35,037,916
Property and equipment, net	6,985,219	7,139,616
Intangible assets, net	527,047	566,197
Other assets, net	895,847	1,135,172
Total assets	37,598,638	43,878,901
Current liabilities:
Current installments of long-term debt	55,958	52,624
Accounts payable and accrued expenses	5,338,907	5,843,044
Accrued compensation and payroll taxes	1,568,292	1,849,780
Income taxes payable	12,949	22,754
Total current liabilities	6,976,106	7,768,202
Note payable, revolver - noncurrent	7,280,673	8,324,397
Long-term debt, excluding current installments	2,585,095	2,622,620
Other noncurrent liabilities	402,673	441,838
Total liabilities	17,244,547	19,157,057
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 7,890,494 shares at July 31, 2024 and 7,893,681 shares at October 31, 2023	15,350,053	15,134,133
Retained earnings	5,004,038	9,587,711
Total shareholders’ equity	20,354,091	24,721,844
Commitments and Contingencies
Total liabilities and shareholders’ equity	$ 37,598,638	$ 43,878,901

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Jul. 31, 2024	Oct. 31, 2023
Accounts Receivable, Allowance for Credit Loss, Current	$ 70,742	$ 71,189
Preferred Stock, No Par Value (in dollars per share)	$ 0	$ 0
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
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)	7,890,494	7,893,681
Common Stock, Shares, Outstanding (in shares)	7,890,494	7,893,681

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Net sales	$ 16,221,671	$ 16,941,378	$ 47,188,534	$ 54,844,589
Cost of goods sold	12,301,447	11,825,348	35,516,152	36,424,644
Gross profit	3,920,224	5,116,030	11,672,382	18,419,945
Selling, general and administrative expenses	5,237,646	4,957,518	15,650,331	16,075,323
Royalty expense, net	6,616	6,571	19,879	19,729
Amortization of intangible assets	13,515	13,516	40,547	40,426
Income (loss) from operations	(1,337,553)	138,425	(4,038,375)	2,284,467
Other income (expense), net:
Interest expense, net	(301,483)	(298,215)	(880,711)	(854,903)
Gain on insurance proceeds, net	90,310	255,880	309,212	1,952,170
Other, net	(1,644)	3,793	47,190	58,617
Other income (expense), net	(212,817)	(38,542)	(524,309)	1,155,884
Income (loss) before income taxes	(1,550,370)	99,883	(4,562,684)	3,440,351
Income tax expense (benefit)	6,683	(920)	20,989	106,477
Net income (loss)	$ (1,557,053)	$ 100,803	$ (4,583,673)	$ 3,333,874
Net income (loss) per share: Basic and diluted (in dollars per share)	$ (0.2)	$ 0.01	$ (0.59)	$ 0.42

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Oct. 31, 2022	7,893,194
Balances at Oct. 31, 2022	$ 14,638,505	$ 7,521,213	$ 22,159,718
Share-based compensation, net (in shares)	(24,626)
Share-based compensation, net	$ 34,322		34,322
Net loss	$ 809,984	0	809,984
Balances (in shares) at Jan. 31, 2023	7,868,568
Balances at Jan. 31, 2023	$ 14,672,827	8,331,197	23,004,024
Balances (in shares) at Oct. 31, 2022	7,893,194
Balances at Oct. 31, 2022	$ 14,638,505	7,521,213	22,159,718
Net loss			3,333,874
Balances (in shares) at Jul. 31, 2023	7,893,681
Balances at Jul. 31, 2023	$ 14,985,834	10,855,087	25,840,921
Balances (in shares) at Jan. 31, 2023	7,868,568
Balances at Jan. 31, 2023	$ 14,672,827	8,331,197	23,004,024
Share-based compensation, net (in shares)	(3,447)
Share-based compensation, net	$ 139,507		139,507
Net loss	$ 2,423,087	0	2,423,087
Balances (in shares) at Apr. 30, 2023	7,865,121
Balances at Apr. 30, 2023	$ 14,812,334	10,754,284	25,566,618
Share-based compensation, net	173,500	0	173,500
Net loss	$ 100,803	0	100,803
Share-based compensation, net (in shares)	28,560
Balances (in shares) at Jul. 31, 2023	7,893,681
Balances at Jul. 31, 2023	$ 14,985,834	10,855,087	25,840,921
Balances (in shares) at Oct. 31, 2023	7,893,681
Balances at Oct. 31, 2023	$ 15,134,133	9,587,711	24,721,844
Share-based compensation, net (in shares)	(40,324)
Share-based compensation, net	$ 51,490		51,490
Net loss	$ (1,425,274)	0	(1,425,274)
Balances (in shares) at Jan. 31, 2024	7,853,357
Balances at Jan. 31, 2024	$ 15,185,623	8,162,437	23,348,060
Balances (in shares) at Oct. 31, 2023	7,893,681
Balances at Oct. 31, 2023	$ 15,134,133	9,587,711	24,721,844
Net loss			(4,583,673)
Balances (in shares) at Jul. 31, 2024	7,890,494
Balances at Jul. 31, 2024	$ 15,350,053	5,004,038	20,354,091
Balances (in shares) at Jan. 31, 2024	7,853,357
Balances at Jan. 31, 2024	$ 15,185,623	8,162,437	23,348,060
Share-based compensation, net (in shares)	842
Share-based compensation, net	$ 91,641		91,641
Net loss	$ (1,601,346)	0	(1,601,346)
Balances (in shares) at Apr. 30, 2024	7,852,515
Balances at Apr. 30, 2024	$ 15,277,264	6,561,091	21,838,355
Share-based compensation, net	72,789	0	72,789
Net loss	$ (1,557,053)	0	(1,557,053)
Share-based compensation, net (in shares)	37,979
Balances (in shares) at Jul. 31, 2024	7,890,494
Balances at Jul. 31, 2024	$ 15,350,053	$ 5,004,038	$ 20,354,091

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2024	Jul. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ (4,583,673)	$ 3,333,874
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	644,376	716,398
Bad debt expense (recovery)	(447)	7,767
Share-based compensation expense	328,871	463,181
Gain on insurance proceeds, net	(309,212)	(1,952,170)
Loss on disposal of property and equipment	796	10,307
(Increase) decrease in:
Trade accounts receivable	139,392	1,656,381
Other receivables	395,147	(33,430)
Inventories	4,507,018	(5,507,567)
Prepaid expenses and other assets	171,230	75,178
Income taxes refundable	1,047	(15,745)
Other assets	305,360	1,809
Increase (decrease) in:
Accounts payable and accrued expenses	(508,683)	307,281
Accrued compensation and payroll taxes	(281,488)	53,399
Income taxes payable	(9,805)	(6,000)
Other noncurrent liabilities	(134,883)	(39,694)
Net cash provided by (used in) operating activities	665,046	(929,031)
Cash flows from investing activities:
Purchase of and deposits for the purchase of property and equipment	(313,072)	(371,385)
Insurance proceeds, net	271,242	1,952,170
Investment in intangible assets	(1,397)	(1,997)
Net cash provided by (used in) investing activities	(43,227)	1,578,788
Cash flows from financing activities:
Payroll taxes withheld and remitted on share-based payments	(112,951)	(115,852)
Principal payments on long-term debt	(34,191)	(252,662)
Payments for financing costs	(75,000)	(75,000)
Principal payments on finance lease	(27,927)	(26,635)
Net cash provided by (used in) financing activities	(1,293,793)	844,881
Net increase (decrease) in cash	(671,974)	1,494,638
Cash at beginning of period	1,468,709	215,936
Cash at end of period	796,735	1,710,574
North Mill Capital LLC [Member] | Revolving Credit Facility [Member]
Cash flows from financing activities:
Proceeds from note payable, revolver	46,960,657	60,019,032
Payments on note payable, revolver	$ (48,004,381)	$ (58,704,002)

Note 1 - General

Note 1 - General	9 Months Ended
	Jul. 31, 2024
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®”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10‑Q and Regulation S‑X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments considered necessary for a fair presentation have been included. Operating results for the nine months ended July 31, 2024 are not necessarily indicative of the results for the fiscal year ending October 31, 2024 because the following items, among other things, may impact those results: changing macroeconomic conditions in various markets, supply chain and labor constraints impacting production volumes, any increased costs related to government and private industry mandates in the areas of the world in which we operate, changes in market conditions, seasonality, inflation and interest rates, changes in technology, competitive conditions, timing of certain projects and purchases by key customers, significant variations in sales resulting from high volatility and timing of large sales orders among a limited number of customers in certain markets, ability of management to execute its business plans, continued ability to maintain and/or secure future debt and/or equity financing to adequately finance ongoing operations; as well as other variables, uncertainties, contingencies and risks set forth as risks in the Company’s Annual Report on Form 10‑K for the fiscal year ended October 31, 2023 (including those set forth in the “Forward-Looking Information” section), or as otherwise set forth in other filings by the Company as variables, contingencies and/or risks possibly affecting future results. The unaudited condensed consolidated financial statements and condensed notes are presented as permitted by Form 10‑Q and do not contain certain information included in the Company’s annual consolidated financial statements and notes. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the fiscal year ended October 31, 2023.

Note 2 - Stock Incentive Plan a

Note 2 - Stock Incentive Plan and Other Share-based Compensation	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	(2) Stock Incentive Plan and Other Share Based Compensation As of July 31, 2024, there were approximately 359,000 remaining shares available for grant under the Optical Cable Corporation Stock Incentive Plan, as amended (“2017 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 nine months ended July 31, 2024 was $78,079 and $328,871, respectively. Share-based compensation expense for employees, a consultant and non-employee Directors recognized in the condensed consolidated statements of operations for the three months and nine months ended July 31, 2023 was $173,500 and $463,181, respectively. Share-based compensation expense is entirely related to expense recognized in connection with the vesting of restricted stock awards or other stock awards. Stock Compensation 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 restricted stock awards or stock awards to non-employee members of the Board of Directors. During the three months ended July 31, 2024, OCC granted restricted stock awards totaling 39,960 shares to non-employee Directors under the 2017 Plan. The shares are subject to a one Restricted stock award activity during the nine months ended July 31, 2024 consisted of stock grants totaling 39,960 shares, restricted shares forfeited totaling 842 shares and restricted shares withheld for taxes in connection with the vesting of restricted shares totaling 42,305 shares. OCC restricted stock grants provide the participant with the option to surrender shares to pay for withholding tax obligations resulting from any vesting restricted shares, or to pay cash to the Company or taxing authorities in the amount of the withholding taxes owed on the value of any vesting restricted shares in order to avoid surrendering shares. As of July 31, 2024, 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 1 year weighted-average period is approximately $294,000. On August 7, 2024, subsequent to the Company’s fiscal quarter end, restricted stock awards for employees under the 2017 Plan totaling 329,850 shares were approved by the Compensation Committee of the Board of Directors of the Company. All of the restricted shares granted are operational performance-based shares vesting over approximately five

Note 3 - Allowance for Credit L

Note 3 - Allowance for Credit Losses for Trade Accounts Receivable	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Allowance for Credit Losses [Text Block]	(3) Allowance for Credit Losses for Trade Accounts Receivable A summary of changes in the allowance for credit losses for trade accounts receivable for the nine months ended July 31, 2024 and 2023 follows: Nine Months Ended July 31, 2024 2023 Balance at beginning of period $ 71,189 $ 69,643 Bad debt expense (recovery) (447 ) 7,767 Balance at end of period $ 70,742 $ 77,410

Note 4 - Inventories

Note 4 - Inventories	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	(4) Inventories Inventories as of July 31, 2024 and October 31, 2023 consist of the following: July 31, October 31, 2024 2023 Finished goods $ 5,420,737 $ 5,937,682 Work in process 3,669,238 4,372,913 Raw materials 9,804,750 13,130,478 Production supplies 364,583 325,253 Total $ 19,259,308 $ 23,766,326

Note 5 - Product Warranties

Note 5 - Product Warranties	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	(5) Product Warranties As of July 31, 2024 and October 31, 2023, the Company’s accrual for estimated product warranty claims totaled $75,000 and $80,000, respectively, and is included in accounts payable and accrued expenses. Warranty claims expense for the three months and nine months ended July 31, 2024 totaled $9,153 and $53,419, respectively. Warranty claims expense for the three months and nine months ended July 31, 2023 totaled $26,048 and $55,700, respectively. The following table summarizes the changes in the Company’s accrual for product warranties during the nine months ended July 31, 2024 and 2023: Nine Months Ended July 31, 2024 2023 Balance at beginning of period $ 80,000 $ 75,000 Liabilities accrued for warranties issued during the period 77,217 77,089 Warranty claims and costs paid during the period (58,419 ) (50,700 ) Changes in liability for pre-existing warranties during the period (23,798 ) (21,389 ) Balance at end of period $ 75,000 $ 80,000

Note 6 - Long-term Debt and Not

Note 6 - Long-term Debt and Notes Payable	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Long-Term Debt [Text Block]	(6) Long-term Debt and Notes Payable The Company has credit facilities consisting of a real estate term loan, as amended and restated (the “Virginia Real Estate Loan”), and a Revolving Credit Master Promissory Note and related Loan and Security Agreement (collectively, the “Revolver”). The Virginia Real Estate Loan is with Northeast Bank and is payable in monthly installments of principal and interest. Principal is calculated using the unpaid balance of the loan and a two hundred forty (240) month amortization schedule. Interest is computed on the aggregate principal balance outstanding at a rate equal to the Prime Rate, adjusted monthly on the fifth day of each calendar month in accordance with changes to the Prime Rate, provided, however, that the interest rate is never less than 8.5% per annum on the basis of a 360-day year times the actual number of days elapsed. The Prime Rate On October 31, 2023, OCC and Northeast Bank entered into an Omnibus Amendment of Loan Documents (the “Amendment”) to modify certain loan documents currently in effect between the parties related to the Virginia Real Estate Loan and a supplemental real estate term loan (the “North Carolina Real Estate Loan”). The primary purpose of the Amendment was to: (i) pay off the principal balance of the North Carolina Real Estate Loan; (ii) pay down the principal balance on the Virginia Real Estate Loan; (iii) extend the maturity date of the Virginia Real Estate Loan through May 5, 2026; (iv) release the collateral of the North Carolina Real Estate Loan; and (v) effective October 5, 2023, modify the interest rate of the Virginia Real Estate Loan to a variable rate equal to the Prime Rate, provided that the interest rate shall never be less than 8.5% per annum. The Loan is secured by a first lien deed of trust on the land and buildings at the Company’s headquarters and manufacturing facilities located in Roanoke, Virginia. The Company had an outstanding balance on its Virginia Real Estate Loan of $2.6 million as of July 31, 2024 and $2.7 million as of October 31, 2023. On June 27, 2024, OCC entered into a Modification Agreement with North Mill Capital LLC (now doing business as SLR Business Credit, “SLR”) to modify the existing Loan and Security Agreement (“Loan Agreement”) dated July 24, 2020. In addition to certain other modifications to the Loan Agreement as set forth in the Modification Agreement, the Modification Agreement provides a two The Revolver with SLR provides the Company with one or more advances in an amount up to: (a) 85% of the aggregate outstanding amount of eligible accounts (the “eligible accounts loan value”); plus (b) the lowest of (i) an amount up to 35% of the aggregate value of eligible inventory, (ii) $7,000,000, and (iii) an amount not to exceed 100% of the then outstanding eligible accounts loan value; minus (c) $1,150,000. The maximum aggregate principal amount subject to the Revolver is $18,000,000. Interest accrues on the daily balance at the per annum rate of 1.5% above the Prime Rate one The Revolver is secured by all of the following assets, properties, rights and interests in property of the Company whether now owned or existing, or hereafter acquired or arising, and wherever located; all accounts, equipment, commercial tort claims, general intangibles, chattel paper, inventory, negotiable collateral, investment property, financial assets, letter-of-credit rights, supporting obligations, deposit accounts, money or assets of the Company, which hereafter come into the possession, custody, or control of SLR; all proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance covering any or all of the foregoing; any and all tangible or intangible property resulting from the sale, lease, license or other disposition of any of the foregoing, or any portion thereof or interest therein, and all proceeds thereof; and any other assets of the Company which may be subject to a lien in favor of SLR as security for the obligations under the Loan Agreement. As of July 31, 2024, the Company had $7.3 million of outstanding borrowings on its Revolver and $2.2 million in available credit. As of October 31, 2023, the Company had $8.3 million of outstanding borrowings on its Revolver and $2.6 million in available credit.

Note 7 - Leases

Note 7 - Leases	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Lessee, Operating and Finance Leases Disclosure [Text Block]	(7) Leases The Company has an operating lease agreement for approximately 34,000 square feet of office, manufacturing and warehouse space in Plano, Texas (near Dallas). The lease term expires on November 30, 2024. The Company has an operating lease agreement for approximately 36,000 square feet of warehouse space in Roanoke, Virginia. The lease term expires on April 30, 2026. The Company also leases certain office equipment under operating leases with initial 60 month terms. The lease terms expire in February and April of 2025. OCC leases printers that are used in the Roanoke, Virginia manufacturing facility. The lease term expires on August 22, 2026. The right-of-use asset is being amortized on a straight line basis over seven years. When the lease term ends, the remaining net book value of the right-of-use asset will be classified as property and equipment. The Company’s lease contracts may include options to extend or terminate the leases. The Company exercises judgment to determine the term of those leases when such options are present and include such options in the calculation of the lease term when it is reasonably certain that it will exercise those options. The Company includes contract lease components in its determination of lease payments, while non-lease components of the contracts, such as taxes, insurance, and common area maintenance, are expensed as incurred. At commencement, right-of-use assets and lease liabilities are measured at the present value of future lease payments over the lease term. The Company uses its incremental borrowing rate based on information available at the time of lease commencement to measure the present value of future payments. Operating lease expense is recognized on a straight-line basis over the lease term. Short term leases with an initial term of 12 months or less are expensed as incurred. The Company’s short term leases have month-to-month terms. Operating lease right-of-use assets of $310,932 and $596,578 were included in other assets accounts payable and accrued expenses other noncurrent liabilities accounts payable and accrued expenses other noncurrent liabilities The weighted average remaining lease term was 14.9 months and the weighted average discount rate was 7.9% as of July 31, 2024. For the three months and nine months ended July 31, 2024, cash paid for operating lease liabilities totaled $112,670 and $335,628, respectively. For the three months and nine months ended July 31, 2023, cash paid for operating lease liabilities totaled $110,025 and $328,992, respectively. For the nine months ended July 31, 2024 and 2023, there were no Finance lease right-of-use assets of $119,219 and $141,342 were included in other assets accounts payable and accrued expenses other noncurrent liabilities accounts payable and accrued expenses other noncurrent liabilities The remaining lease term for the finance lease is 25 months and the discount rate is 4.75% as of July 31, 2024. For the three months ended July 31, 2024, cash paid for the finance lease liability totaled $1,297 for interest and $9,419 for principal. For the nine months ended July 31, 2024, cash paid for the finance lease liability totaled $4,224 for interest and $27,927 for principal. For the three months ended July 31, 2023, cash paid for the finance lease liability totaled $1,734 for interest and $8,983 for principal. For the nine months ended July 31, 2023, cash paid for the finance lease liability totaled $5,517 for interest and $26,635 for principal. The Company’s future payments due under leases reconciled to the lease liabilities are as follows: Fiscal Year Operating leases Finance lease 2024 (1) $ 112,670 $ 10,717 2025 177,997 42,868 2026 63,644 55,714 Total undiscounted lease payments 354,311 109,299 Present value discount (19,737 ) (6,316 ) Total lease liability $ 334,574 $ 102,983 (1)

Note 8 - Fair Value Measurement

Note 8 - Fair Value Measurements	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Fair Value Disclosures [Text Block]	(8) Fair Value Measurements The carrying amounts reported in the condensed consolidated balance sheets as of July 31, 2024 and October 31, 2023 for cash, trade accounts receivable, income taxes refundable – current, other receivables, current installments of long-term debt, accounts payable and accrued expenses, accrued compensation and payroll taxes, and income taxes payable approximate fair value because of the short maturity of these instruments. The carrying value of the Company’s note payable, revolver – noncurrent, and long-term debt, excluding current installments, approximates fair value because the interest rates vary with the market. 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 9 - Net Income (Loss) Per

Note 9 - Net Income (Loss) Per Share	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	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, 2024 2023 2024 2023 Net income (loss) (numerator) $ (1,557,053 ) $ 100,803 $ (4,583,673 ) $ 3,333,874 Shares (denominator) 7,739,266 7,866,673 7,753,148 7,875,963 Basic and diluted net income (loss) per share $ (0.20 ) $ 0.01 $ (0.59 ) $ 0.42 Weighted average unvested shares for the three months and nine months ended July 31, 2024 totaling 145,739 and 124,101, respectively, while issued and outstanding, were not included in the computation of basic and diluted net loss per share for the three months and nine months ended July 31, 2024 (because to include such shares would have been anti-dilutive, or in other words, to do so would have reduced the net loss per share for those periods).

Note 10 - Segment Information a

Note 10 - Segment Information and Business and Credit Concentrations	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	(10) Segment Information and Business and Credit Concentrations The Company provides credit, in the normal course of business, to various commercial enterprises, governmental entities and not‑for‑profit organizations. Concentration of credit risk with respect to trade receivables is normally limited due to the Company’s large number of customers. The Company also manages exposure to credit risk through credit approvals, credit limits and monitoring procedures. Management believes that credit risks as of July 31, 2024 have been adequately provided for in the condensed consolidated financial statements. The Company includes all entities under common ownership for the purpose of calculating business concentrations. For the three months and nine months ended July 31, 2024, 18.7% and 16.9%, respectively, of consolidated net sales were attributable to one The Company has a single

Note 11 - Revenue Recognition

Note 11 - Revenue Recognition	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	(11) 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 include financing components, as payment terms are generally due 30 to 90 days after shipment. Taxes assessed by governmental authorities and collected from the customer including, but not limited to, sales and use taxes and value-added taxes, are not included in the transaction price and are not included in net sales. 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 contract assets are recognized. The Company’s contract liability represents advance consideration received from customers prior to transfer of the product. This liability was $150,467 as of July 31, 2024 and $110,336 as of October 31, 2023. 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, and the Company excludes such amounts from net sales. The Company’s refund liability was $193,908 as of July 31, 2024 and $252,264 as of October 31, 2023. 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 offered. The warranty claim is generally limited to a credit equal to the purchase price or a promise to repair or replace the product for a specified period of time at no additional charge. 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 months and nine months ended July 31, 2024 and 2023: Three months ended Nine months ended July 31, July 31, 2024 2023 2024 2023 United States $ 13,077,203 $ 14,220,273 $ 38,071,069 $ 44,627,575 Outside the United States 3,144,468 2,721,105 9,117,465 10,217,014 Total net sales $ 16,221,671 $ 16,941,378 $ 47,188,534 $ 54,844,589

Note 12 - Contingencies

Note 12 - Contingencies	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	(12) 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 13 - New Accounting Standa

Note 13 - New Accounting Standards Not Yet Adopted	9 Months Ended
	Jul. 31, 2024
Notes to Financial Statements
Accounting Standards Update and Change in Accounting Principle [Text Block]	(13) New Accounting Standards Not Yet Adopted In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures 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.

Insider Trading Arrangements

Insider Trading Arrangements	9 Months Ended
	Jul. 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	At the end of December 2022, an office building and its contents at the Company’s Asheville facilities sustained water damage resulting from a burst pipe in the sprinkler system, likely due to extreme low temperatures in the area during the days leading up to the event. This office building is separate from the Company’s manufacturing building which houses its manufacturing operations and certain offices at the same location. There was no During the first nine months of fiscal year 2024, the Company recognized a gain on insurance proceeds, net for damage to property and equipment totaling $309,000 which is reflected as income under other income (expense), net on the Company’s condensed consolidated statement of operations. To the extent the Company incurs expenses in future periods to restore, repair or replace damaged assets, it may recognize offsetting losses in those future periods. At this time, the Company does not expect any future restoration and repair costs to exceed any insurance proceeds.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Note 3 - Allowance for Credit_2

Note 3 - Allowance for Credit Losses for Trade Accounts Receivable (Tables)	9 Months Ended
	Jul. 31, 2024
Notes Tables
Accounts Receivable, Allowance for Credit Loss [Table Text Block]	Nine Months Ended July 31, 2024 2023 Balance at beginning of period $ 71,189 $ 69,643 Bad debt expense (recovery) (447 ) 7,767 Balance at end of period $ 70,742 $ 77,410

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	9 Months Ended
	Jul. 31, 2024
Notes Tables
Schedule of Inventory, Current [Table Text Block]	July 31, October 31, 2024 2023 Finished goods $ 5,420,737 $ 5,937,682 Work in process 3,669,238 4,372,913 Raw materials 9,804,750 13,130,478 Production supplies 364,583 325,253 Total $ 19,259,308 $ 23,766,326

Note 5 - Product Warranties (Ta

Note 5 - Product Warranties (Tables)	9 Months Ended
	Jul. 31, 2024
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Nine Months Ended July 31, 2024 2023 Balance at beginning of period $ 80,000 $ 75,000 Liabilities accrued for warranties issued during the period 77,217 77,089 Warranty claims and costs paid during the period (58,419 ) (50,700 ) Changes in liability for pre-existing warranties during the period (23,798 ) (21,389 ) Balance at end of period $ 75,000 $ 80,000

Note 7 - Leases (Tables)

Note 7 - Leases (Tables)	9 Months Ended
	Jul. 31, 2024
Notes Tables
Lessee, Lease Liability, Maturity [Table Text Block]	Fiscal Year Operating leases Finance lease 2024 (1) $ 112,670 $ 10,717 2025 177,997 42,868 2026 63,644 55,714 Total undiscounted lease payments 354,311 109,299 Present value discount (19,737 ) (6,316 ) Total lease liability $ 334,574 $ 102,983

Note 9 - Net Income (Loss) Pe_2

Note 9 - Net Income (Loss) Per Share (Tables)	9 Months Ended
	Jul. 31, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended Nine months ended July 31, July 31, 2024 2023 2024 2023 Net income (loss) (numerator) $ (1,557,053 ) $ 100,803 $ (4,583,673 ) $ 3,333,874 Shares (denominator) 7,739,266 7,866,673 7,753,148 7,875,963 Basic and diluted net income (loss) per share $ (0.20 ) $ 0.01 $ (0.59 ) $ 0.42

Note 11 - Revenue Recognition (

Note 11 - Revenue Recognition (Tables)	9 Months Ended
	Jul. 31, 2024
Notes Tables
Revenue from External Customers by Geographic Areas [Table Text Block]	Three months ended Nine months ended July 31, July 31, 2024 2023 2024 2023 United States $ 13,077,203 $ 14,220,273 $ 38,071,069 $ 44,627,575 Outside the United States 3,144,468 2,721,105 9,117,465 10,217,014 Total net sales $ 16,221,671 $ 16,941,378 $ 47,188,534 $ 54,844,589

Note 2 - Stock Incentive Plan_2

Note 2 - Stock Incentive Plan and Other Share-based Compensation (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
	Aug. 07, 2024	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period				39,960
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period				842
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation				42,305
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition				1 year
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 294,000		$ 294,000
Plan 2017 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant		359,000		359,000
Plan 2017 [Member] | Restricted Stock [Member] | Share-Based Payment Arrangement, Nonemployee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period		39,960
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period		1 year
Plan 2017 [Member] | Restricted Stock [Member] | Share-Based Payment Arrangement, Employee [Member] | Subsequent Event [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period	329,850
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period	5 years
Plan 2017 [Member] | Employees, Consultant and Non-employee Directors [Member]
Share-Based Payment Arrangement, Expense		$ 78,079	$ 173,500	$ 328,871	$ 463,181

Note 3 - Allowance for Credit_3

Note 3 - Allowance for Credit Losses for Trade Accounts Receivable - Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable (Details) - USD ($)	9 Months Ended
	Jul. 31, 2024	Jul. 31, 2023
Balance at beginning of period	$ 71,189	$ 69,643
Bad debt expense (recovery)	(447)	7,767
Balance at end of period	$ 70,742	$ 77,410

Note 4 - Inventories - Componen

Note 4 - Inventories - Components of Inventories (Details) - USD ($)	Jul. 31, 2024	Oct. 31, 2023
Finished goods	$ 5,420,737	$ 5,937,682
Work in process	3,669,238	4,372,913
Raw materials	9,804,750	13,130,478
Production supplies	364,583	325,253
Total	$ 19,259,308	$ 23,766,326

Note 5 - Product Warranties (De

Note 5 - Product Warranties (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023	Oct. 31, 2023	Oct. 31, 2022
Standard and Extended Product Warranty Accrual	$ 75,000	$ 80,000	$ 75,000	$ 80,000	$ 80,000	$ 75,000
Product Warranty Expense	9,153	$ 26,048	53,419	$ 55,700
Accounts Payable and Accrued Liabilities [Member]
Standard and Extended Product Warranty Accrual	$ 75,000		$ 75,000		$ 80,000

Note 5 - Product Warranties - C

Note 5 - Product Warranties - Changes in Accrual for Product Warranties (Details) - USD ($)	9 Months Ended
	Jul. 31, 2024	Jul. 31, 2023
Balance at beginning of period	$ 80,000	$ 75,000
Liabilities accrued for warranties issued during the period	77,217	77,089
Warranty claims and costs paid during the period	(58,419)	(50,700)
Changes in liability for pre-existing warranties during the period	(23,798)	(21,389)
Balance at end of period	$ 75,000	$ 80,000

Note 6 - Long-term Debt and N_2

Note 6 - Long-term Debt and Notes Payable (Details Textual) - USD ($)		9 Months Ended	12 Months Ended
	Jul. 24, 2020	Jul. 31, 2024	Oct. 31, 2023	Jun. 27, 2024
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		us-gaap:PrimeRateMember	us-gaap:PrimeRateMember
Loans Payable, Noncurrent		$ 2,585,095	$ 2,622,620
Revolving Credit Facility [Member] | North Mill Capital LLC [Member]
Debt Instrument, Interest Rate, Effective Percentage	4.75%	10%	10%
Debt Instrument, Initial Term, Extension				2 years
Line of Credit Facility, Additional Capacity for Advances	$ 5,000,000	$ 7,000,000		$ 7,000,000
Line of Credit Facility, Percent of Eligible Accounts		85%
Line of Credit Facility, Percent of Eligible Inventory		35%
Line of Credit Facility, Maximum Percentage of Outstanding Eligible Accounts Loan Value		100%
Line of Credit Facility, Restricted Capacity for Advances		$ 1,150,000
Line of Credit Facility, Maximum Borrowing Capacity		$ 18,000,000
Debt Instrument, Basis Spread on Variable Rate		1.50%
Debt Instrument, Term Extensions	1 year
Long-Term Line of Credit		$ 7,300,000	$ 8,300,000
Line of Credit Facility, Remaining Borrowing Capacity		$ 2,200,000	$ 2,600,000
Maximum [Member] | Revolving Credit Facility [Member] | North Mill Capital LLC [Member]
Debt Instrument, Interest Rate, Effective Percentage	6%
Virginia Real Estate Loan [Member]
Debt Instrument, Amortization Period		240 months
Debt Instrument, Interest Rate, Effective Percentage		8.50%	8.50%
Loans Payable, Noncurrent		$ 2,600,000	$ 2,700,000
Virginia Real Estate Loan [Member] | Minimum [Member]
Debt Instrument, Interest Rate, Effective Percentage		8.50%

Note 7 - Leases (Details Textua

Note 7 - Leases (Details Textual)	3 Months Ended		9 Months Ended
	Jul. 31, 2024 USD ($) ft²	Jul. 31, 2023 USD ($)	Jul. 31, 2024 USD ($) ft²	Jul. 31, 2023 USD ($)	Oct. 31, 2023 USD ($)
Operating Lease, Right-of-Use Asset	$ 310,932		$ 310,932		$ 596,578
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets, net		Other assets, net		Other assets, net
Operating Lease, Liability, Current	$ 242,591		$ 242,591		$ 414,159
Operating Lease, Liability, Noncurrent	$ 91,983		$ 91,983		$ 227,925
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accounts payable and accrued expenses		Accounts payable and accrued expenses		Accounts payable and accrued expenses
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other noncurrent liabilities		Other noncurrent liabilities		Other noncurrent liabilities
Operating Lease, Expense	$ 109,143	$ 109,145	$ 327,431	$ 321,621
Operating Lease, Weighted Average Remaining Lease Term	14 months 27 days		14 months 27 days
Operating Lease, Weighted Average Discount Rate, Percent	7.90%		7.90%
Operating Lease, Payments	$ 112,670	110,025	$ 335,628	328,992
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability			0	0
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	$ 119,219		$ 119,219		$ 141,342
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets, net		Other assets, net		Other assets, net
Finance Lease, Liability, Current	$ 38,814		$ 38,814		$ 37,459
Finance Lease, Liability, Noncurrent	$ 64,169		$ 64,169		$ 93,451
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accounts payable and accrued expenses		Accounts payable and accrued expenses		Accounts payable and accrued expenses
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other noncurrent liabilities		Other noncurrent liabilities		Other noncurrent liabilities
Finance Lease, Interest Expense	$ 1,297	1,734	$ 4,224	5,517
Finance Lease, Right-of-Use Asset, Amortization	$ 7,374	7,374	$ 22,123	22,123
Lessee, Finance Lease, Remaining Lease Term	25 months		25 months
Lessee, Finance Lease, Discount Rate	4.75%		4.75%
Finance Lease, Principal Payments	$ 9,419	$ 8,983	$ 27,927	$ 26,635
Operating Lease for Office, Manufacturing and Warehouse Space in Plano, Texas [Member]
Area of Real Estate Property | ft²	34,000		34,000
Operating Lease for Warehouse Space in Roanoke, Virginia [Member]
Area of Real Estate Property | ft²	36,000		36,000
Operating Lease For Office Equipment [Member]
Lessee, Operating Lease, Term of Contract	60 months		60 months

Note 7 - Leases - Future Paymen

Note 7 - Leases - Future Payments Due (Details)	Jul. 31, 2024 USD ($)
2024, Operating Lease	$ 112,670	[1]
2024, Finance Lease	10,717	[1]
2025, Operating Lease	177,997
2025, Finance Lease	42,868
2026, Operating Lease	63,644
2026, Finance Lease	55,714
Total undiscounted lease payments, Operating Lease	354,311
Total undiscounted lease payments, Finance Lease	109,299
Present value discount, Operating Lease	(19,737)
Present value discount, Finance Lease	(6,316)
Total lease liability, Operating Lease	334,574
Total lease liability, Finance Lease	$ 102,983
[1]Remaining three months of fiscal year 2024.

Note 9 - Net Income (Loss) Pe_3

Note 9 - Net Income (Loss) Per Share (Details Textual) - shares	3 Months Ended	9 Months Ended
	Jul. 31, 2024	Jul. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	145,739	124,101

Note 9 - Net Income (Loss) Pe_4

Note 9 - 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, 2024	Apr. 30, 2024	Jan. 31, 2024	Jul. 31, 2023	Apr. 30, 2023	Jan. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Net loss	$ (1,557,053)	$ (1,601,346)	$ (1,425,274)	$ 100,803	$ 2,423,087	$ 809,984	$ (4,583,673)	$ 3,333,874
Shares (denominator) (in shares)	7,739,266			7,866,673			7,753,148	7,875,963
Net income (loss) per share: Basic and diluted (in dollars per share)	$ (0.2)			$ 0.01			$ (0.59)	$ 0.42

Note 10 - Segment Information_2

Note 10 - Segment Information and Business and Credit Concentrations (Details Textual)	3 Months Ended		9 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Number of Reportable Segments			1
Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Concentration Risk, Number of Customers	1	1	1	1
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member]
Concentration Risk, Percentage	18.70%	16.10%	16.90%	16.30%

Note 11 - Revenue Recognition_2

Note 11 - Revenue Recognition (Details Textual) - USD ($)	Jul. 31, 2024	Oct. 31, 2023
Contract with Customer, Liability	$ 150,467	$ 110,336
Contract with Customer, Refund Liability	$ 193,908	$ 252,264

Note 11 - Revenue Recognition -

Note 11 - Revenue Recognition - Schedule of Revenue from External Customers by Geographical Areas (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Net sales	$ 16,221,671	$ 16,941,378	$ 47,188,534	$ 54,844,589
UNITED STATES
Net sales	13,077,203	14,220,273	38,071,069	44,627,575
Non-US [Member]
Net sales	$ 3,144,468	$ 2,721,105	$ 9,117,465	$ 10,217,014