Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Jan. 04, 2022 | Apr. 30, 2021 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000740664 | ||
Entity Registrant Name | R F INDUSTRIES LTD | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 0-13301 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 88-0168936 | ||
Entity Address, Address Line One | 7610 Miramar Road, Bldg. 6000 | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92126-4202 | ||
City Area Code | 858 | ||
Local Phone Number | 549-6340 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | RFIL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 56,700,000 | ||
Entity Common Stock, Shares Outstanding | 10,058,571 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 13,053 | $ 15,797 |
Trade accounts receivable, net of allowance for doubtful accounts of $87 and $66, respectively | 13,523 | 5,669 |
Inventories | 11,179 | 8,586 |
Other current assets | 2,893 | 813 |
TOTAL CURRENT ASSETS | 40,648 | 30,865 |
Property and equipment: | ||
Equipment and tooling | 3,986 | 3,819 |
Furniture and office equipment | 1,086 | 1,073 |
Property, Plant and Equipment, Gross, Ending Balance | 5,072 | 4,892 |
Less accumulated depreciation | 4,364 | 4,082 |
Total property and equipment | 708 | 810 |
Operating lease right of use assets, net | 1,453 | 1,421 |
Goodwill | 2,467 | 2,467 |
Amortizable intangible assets | 2,739 | 3,181 |
Trademarks | 1,174 | 1,174 |
Deferred tax assets | 389 | 834 |
Other assets | 70 | 70 |
TOTAL ASSETS | 49,648 | 40,822 |
CURRENT LIABILITIES | ||
Accounts payable | 3,504 | 1,475 |
Accrued expenses | 5,034 | 2,573 |
Current portion of PPP Loan | 0 | 1,699 |
Income taxes payable | 0 | 43 |
Other current liabilities | 832 | 874 |
TOTAL CURRENT LIABILITIES | 9,370 | 6,664 |
Operating lease liabilities | 675 | 635 |
PPP Loan | 0 | 1,089 |
Other long-term liabilities | 0 | 370 |
TOTAL LIABILITIES | 10,045 | 8,758 |
STOCKHOLDERS’ EQUITY | ||
Common stock - authorized 20,000,000 shares of $0.01 par value; 10,058,571 and 9,814,118 shares issued and outstanding at October 31, 2021 and October 31, 2020, respectively | 101 | 98 |
Additional paid-in capital | 24,301 | 22,946 |
Retained earnings | 15,201 | 9,020 |
TOTAL STOCKHOLDERS' EQUITY | 39,603 | 32,064 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 49,648 | $ 40,822 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Trade accounts receivable, allowance for doubtful accounts | $ 87 | $ 66 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 10,058,571 | 9,814,118 |
Common stock, shares outstanding (in shares) | 10,058,571 | 9,814,118 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Net sales | $ 57,424,000 | $ 43,044,000 |
Cost of sales | 39,656,000 | 31,478,000 |
Gross profit | 17,768,000 | 11,566,000 |
Operating expenses: | ||
Engineering | 1,479,000 | 1,989,000 |
Selling and general | 11,874,000 | 9,980,000 |
Total operating expense | 13,353,000 | 11,969,000 |
Operating income (loss) | 4,415,000 | (403,000) |
Other income (loss) | 2,802,000 | (45,000) |
Income (loss) before provision (benefit) for income taxes | 7,217,000 | (448,000) |
Provision (benefit) for income taxes | 1,036,000 | (367,000) |
Consolidated net income (loss) | $ 6,181,000 | $ (81,000) |
Earnings (loss) per share | ||
Basic (in dollars per share) | $ 0.62 | $ (0.01) |
Diluted (in dollars per share) | $ 0.61 | $ (0.01) |
Weighted average shares outstanding | ||
Basic (in shares) | 9,978,683 | 9,678,822 |
Diluted (in shares) | 10,154,239 | 9,678,822 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Oct. 31, 2019 | 9,462,267 | |||
Balance at Oct. 31, 2019 | $ 95,000 | $ 21,949,000 | $ 9,489,000 | $ 31,533,000 |
Exercise of stock options (in shares) | 241,209 | 241,209 | ||
Exercise of stock options | $ 2,000 | 443,000 | $ 445,000 | |
Stock-based compensation expense | 473,000 | 473,000 | ||
Issuance of restricted stock (in shares) | 97,451 | |||
Issuance of restricted stock | $ 1,000 | (1,000) | ||
Issuance of common shares | $ 13,191,000 | 82,000 | 82,000 | |
Dividends | (388,000) | (388,000) | ||
Consolidated net income (loss) | (81,000) | (81,000) | ||
Balance (in shares) at Oct. 31, 2020 | 9,814,118 | |||
Balance at Oct. 31, 2020 | $ 98,000 | 22,946,000 | 9,020,000 | $ 32,064,000 |
Exercise of stock options (in shares) | 195,528 | 195,528 | ||
Exercise of stock options | $ 2,000 | 603,000 | $ 605,000 | |
Stock-based compensation expense | 769,000 | 769,000 | ||
Issuance of restricted stock (in shares) | 56,941 | |||
Issuance of restricted stock | $ 1,000 | (1,000) | ||
Consolidated net income (loss) | 6,181,000 | 6,181,000 | ||
Forfeiture of restricted stock (in shares) | (5,182) | |||
Tax withholding related to vesting of restricted stock (in shares) | (2,834) | |||
Tax withholding related to vesting of restricted stock | (16,000) | (16,000) | ||
Balance (in shares) at Oct. 31, 2021 | 10,058,571 | |||
Balance at Oct. 31, 2021 | $ 101,000 | $ 24,301,000 | $ 15,201,000 | $ 39,603,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
OPERATING ACTIVITIES: | ||
Consolidated net income (loss) | $ 6,181,000 | $ (81,000) |
Adjustments to reconcile consolidated net income (loss) to net cash (used in) provided by operating activities: | ||
Bad debt expense | 29,000 | 16,000 |
Depreciation and amortization | 770,000 | 1,014,000 |
Share-based Payment Arrangement, Noncash Expense, Total | 769,000 | 556,000 |
Deferred income taxes | 445,000 | (790,000) |
Tax payments related to shares cancelled for vested restricted stock awards | (16,000) | |
PPP Loan forgiveness | (2,807,000) | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (7,882,000) | 6,775,000 |
Inventories | (2,592,000) | 442,000 |
Other current assets | (2,079,000) | (113,000) |
Right of use asset | (35,000) | 88,000 |
Other long-term assets | (1,000) | (2,000) |
Accounts payable | 2,030,000 | (1,040,000) |
Accrued expenses | 2,479,000 | (1,374,000) |
Income tax payable | (43,000) | 22,000 |
Other long-term liabilities | (370,000) | (966,000) |
Net cash (used in) provided by operating activities | (3,122,000) | 4,547,000 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (227,000) | (235,000) |
Net cash used in investing activities | (227,000) | (4,136,000) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 605,000 | 445,000 |
Dividends paid | 0 | (388,000) |
Net cash provided by financing activities | 605,000 | 2,846,000 |
Net (decrease) increase in cash and cash equivalents | (2,744,000) | 3,257,000 |
Cash and cash equivalents, beginning of year | 15,797,000 | 12,540,000 |
Cash and cash equivalents, end of year | 13,053,000 | 15,797,000 |
Supplemental cash flow information – income taxes paid | $ 949,000 | 415,000 |
Paycheck Protection Program CARES Act [Member] | ||
FINANCING ACTIVITIES: | ||
Proceeds from PPP Loan | 2,789,000 | |
Schrofftech [Member] | ||
INVESTING ACTIVITIES: | ||
Purchase of company, net of cash acquired | $ (3,901,000) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Schrofftech [Member] | |
Purchase of company, cash acquired | $ 99 |
Note 1 - Business Activities an
Note 1 - Business Activities and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1 Business activities and summary of significant accounting policies Business activities RF Industries, Ltd., together with its four October 31, 2021, five SM Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results may Principles of consolidation The accompanying consolidated financial statements include the accounts of RF Industries, Ltd., Cables Unlimited, Inc. (“Cables Unlimited”), Rel-Tech Electronics, Inc. (“Rel-Tech”), C Enterprises, Inc. (“C Enterprises”), and Schroff Technologies International, Ltd. (“Schrofftech”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation. Cash equivalents The Company considers all highly-liquid investments with an original maturity of three Revenue recognition On November 1, 2018, No. 2014 09, 606 606” 606 606, five 1 2 3 4 5 no Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined using the weighted average cost of accounting. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value due to damage, physical deterioration, obsolescence, changes in price levels, or other causes, we reduce our inventory to a new cost basis through a charge to cost of sales in the period in which it occurs. The determination of market value and the estimated volume of demand used in the lower of cost or market analysis requires significant judgment. Property and equipment Equipment, tooling and furniture are recorded at cost and depreciated over their estimated useful lives (generally three five Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill is not October, We assess whether a goodwill impairment exists using both qualitative and quantitative assessments at the reporting level. Our qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not not not not Under the amendments of this update, the goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss should be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. No October 31, 2021 2020. 19 October 31, 2021 October 31, 2021. no On June 15, 2011, May 19, 2015, June 1, 2015, March 15, 2019, no November 4, 2019, Long-lived assets We assess property, plant and equipment and intangible assets, which are considered definite-lived assets for impairment. Definite-lived assets are reviewed when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not no We amortize our intangible assets with definite useful lives over their estimated useful lives and review these assets for impairment. In addition, we test our trademarks and indefinite-lived asset for impairment at least annually or more frequently if events or changes in circumstances indicate that these assets may No October 31, 2021 2020. Fair value measurement We measure at fair value certain financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two Level 1— Level 2— not Level 3— one As of October 31, 2021 2020, Intangible assets Intangible assets consist of the following as of October 31, 2021 2020 2021 2020 Amortizable intangible assets: Non-compete agreement (estimated life 5 $ 423 $ 423 Accumulated amortization (289 ) (245 ) 134 178 Customer relationships (estimated lives 7 15 5,058 5,058 Accumulated amortization (2,711 ) (2,367 ) 2,347 2,691 Backlog (estimated life 1 2 287 287 Accumulated amortization (287 ) (266 ) - 21 Patents (estimated life 14 368 368 Accumulated amortization (110 ) (77 ) 258 291 Totals $ 2,739 $ 3,181 Non-amortizable intangible assets: Trademarks $ 1,174 $ 1,174 Amortization expense was $442,000 and $692,000 for the years ended October 31, 2021 2020. There was no October 31, 2021 2020. Estimated amortization expense related to finite-lived intangible assets is as follows (in thousands): Year ending October 31, Amount 2022 $ 374 2023 364 2024 364 2025 320 2026 320 Thereafter 997 Total $ 2,739 Advertising We expense the cost of advertising and promotions as incurred. Advertising costs charged to operations were approximately $314,000 and $295,000 in 2021 2020, Research and development Research and development costs are expensed as incurred. Our research and development expenses relate to its engineering activities, which consist of the design and development of new products for specific customers, as well as the design and engineering of new or redesigned products for the industry in general. During the years ended October 31, 2021 2020, Income taxes We account for income taxes under the asset and liability method, based on the income tax laws and rates in the jurisdictions in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Developing the provision (benefit) for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may We had adopted the provisions of ASC 740 10, 740 10 not not 8 Stock options For stock option grants to employees, we recognize compensation expense based on the estimated fair value of the options at the date of grant. Stock-based employee compensation expense is recognized on a straight-line basis over the requisite service period. We issue previously unissued common shares upon the exercise of stock options. For the fiscal years ended October 31, 2021 2020, October 31, 2021 2020, Earnings per share Basic earnings per share is calculated by dividing net income applicable to common stockholders by the weighted average number of common shares outstanding during the period. The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally those issuable upon the exercise of stock options, were issued and the treasury stock method had been applied during the period. The greatest number of shares potentially issuable upon the exercise of stock options in any period for the years ended October 31, 2021 2020, not The following table summarizes the computation of basic and diluted earnings per share: 2021 2020 Numerators: Consolidated net income (A) $ 6,181,000 $ (81,000 ) Denominators: Weighted average shares outstanding for basic earnings per share (B) 9,978,683 9,678,822 Add effects of potentially dilutive securities - assumed exercise of stock options 175,556 - Weighted average shares outstanding for diluted earnings per share (C) 10,154,239 9,678,822 Basic earnings per share (A)/(B) $ 0.62 $ (0.01 ) Diluted earnings per share (A)/(C) $ 0.61 $ (0.01 ) Recent accounting standards Recently issued accounting pronouncements not In June 2016, 2016 13, December 15, 2019. November 2019, 2019 10, 326 December 15, 2022. Recently issued accounting pronouncements adopted: In February 2016, No. 2016 02, 2016 02, November 1, 2019, 2020, 12 November 1, 2019, not In January 2017, No. 2017 04, 2 November 1, 2020, 2021, not October 31, 2021. |
Note 2 - Business Acquisition
Note 2 - Business Acquisition | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2 Business acquisition On November 4, 2019, two Note 6 Accrued expenses and other long-term liabilities, The acquisition was accounted for as an acquisition of a business in accordance with the acquisition method of accounting. The acquired assets and assumed liabilities have been recorded at their estimated fair values. We determined the estimated fair values with the assistance of appraisals or valuations performed by an independent third Although the closing occurred on November 4, 2019, November 1, 2019. 2019, 2020, none 2021. October 31, 2021, The following table summarizes the components of the purchase price at fair values at November 1, 2019: Cash consideration paid $ 4,000,000 Earn-out liability 1,249,000 Total purchase price $ 5,249,000 The following table summarizes the allocation of the purchase price at fair value at November 1, 2019: Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,127,000 Non-interest bearing liabilities (403,000 ) Net assets $ 5,249,000 |
Note 3 - Concentrations of Cred
Note 3 - Concentrations of Credit Risk | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 3 Concentrations of credit risk Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At October 31, 2021, Two customers, a wireless carrier, and a distributor, accounted for approximately 21% and 11%, respectively, of net sales for the year ended October 31, 2021. two October 31, 2021. October 31, 2020, not two October 31, 2020. not |
Note 4 - Inventories and Major
Note 4 - Inventories and Major Vendors | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4 Inventories and major vendors Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or net realizable value. Cost has been determined using the weighted average cost method. Inventories consist of the following (in thousands): 2021 2020 Raw materials and supplies $ 6,422 $ 4,410 Work in process 381 196 Finished goods 4,376 3,980 Totals $ 11,179 $ 8,586 One October 31, 2021, 10% October 31, 2020. |
Note 5 - Other Current Assets
Note 5 - Other Current Assets | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | Note 5 Other current assets Other current assets consist of the following (in thousands): 2021 2020 Employee retention credit ("ERC") $ 1,774 $ - Prepaid taxes 314 - Prepaid expense 439 393 Other 366 420 Totals $ 2,893 $ 813 Pursuant to the CARES Act, eligible employers are able to claim an ERC, which is a refundable tax credit against certain employment taxes. If the employer’s employment tax deposits are not may first second 2021, October 31, 2021, not |
Note 6 - Accrued Expenses and O
Note 6 - Accrued Expenses and Other Long-term Liabilities | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | Note 6 Accrued expenses and other long-term liabilities Accrued expenses consist of the following (in thousands): 2021 2020 Wages payable $ 2,607 $ 1,506 Accrued receipts 1,711 518 Other current liabilities 716 549 Totals $ 5,034 $ 2,573 Accrued receipts represent purchased inventory for which invoices have not The purchase agreement for the Schrofftech acquisition provides for earn-out payments of up to $2,400,000, which is earned through October 31, 2021. October 31, 2021, October 31, 2021. We estimated the fair value of the earn-out liability using an option pricing based approach with a risk-neutral framework using Black Scholes related to Schrofftech calculated at net present value (Level 3 The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2021 ( Description Level 3 Earn-out liability $ - The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2020 ( Description Level 3 Earn-out liability $ 370 The following table summarizes the changes to the Level 3 three October 31, 2021, July 31, 2021, April 30, 2021, January 31, 2021 ( Level 3 October 31, 2021 July 31, 2021 April 30, 2021 January 31, 2021 October 31, 2020 Beginning balance $ - $ - $ 296 $ 370 $ 1,249 Change in value - - (296 ) (74 ) (879 ) Ending balance $ - $ - $ - $ 296 $ 370 |
Note 7 - Segment Information
Note 7 - Segment Information | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 7 Segment information We aggregate operating divisions into operating segments which have similar economic characteristics primarily in the following areas: ( 1 2 3 4 5 October 31, 2021, two During fiscal 2021, one four five Management identifies segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the RF Connector division constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment. As reviewed by our chief operating decision maker, we evaluate the performance of each segment based on income or loss before income taxes. We charge depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same for the Company as a whole. All of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the years ended October 31, 2021 2020 2021 2020 United States $ 54,960 $ 41,633 Foreign Countries: Canada 1,856 933 Mexico 130 12 All Other 478 466 2,464 1,411 Totals $ 57,424 $ 43,044 Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the years ended October 31, 2021 2020 RF Connector Custom Cabling and Manufacturing and Cable Assembly Assembly Corporate Total Check 2021 Net sales $ 15,622 $ 41,802 $ - $ 57,424 $ 57,424 Income (loss) before benefit for income taxes 2,494 1,921 2,802 * 7,217 7,217 Depreciation and amortization 141 629 - 770 770 Total assets 7,367 25,875 16,406 49,648 49,648 2020 Net sales $ 14,554 $ 28,490 $ - $ 43,044 $ 43,044 Income before provision for income taxes 2,019 (2,423 ) (44 ) (448 ) (448 ) Depreciation and amortization 159 855 - 1,014 1,014 Total assets 7,822 15,486 17,514 40,822 40,822 * For the 12 months ended October 31, 2021, $2.8M |
Note 8 - Income Tax Provision
Note 8 - Income Tax Provision | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 8 Income tax provision The provision (benefit) for income taxes for the fiscal years ended October 31, 2021 2020 2021 2020 Current: Federal $ 401 $ 279 State 189 143 590 422 Deferred: Federal 323 (593 ) State 123 (196 ) 446 (789 ) $ 1,036 $ (367 ) Income tax at the federal statutory rate is reconciled to our actual net provision (benefit) for income taxes as follows (in thousands, except percentages): 2021 2020 % of Pretax % of Pretax Amount Income Amount Income Income taxes at federal statutory rate $ 1,516 21.0 % $ (94 ) 21.0 % State tax provision, net of federal tax benefit 246 3.4 % (41 ) 9.2 % Nondeductible differences: Stock options (86 ) -1.2 % (123 ) 27.5 % PPP loan forgiveness (588 ) -8.1 % - 0.0 % Meals and entertainment 1 0.0 % 2 -0.4 % Parking disallowance 4 0.1 % 5 -1.1 % R&D credits (51 ) -0.7 % (152 ) 33.9 % Foreign derived intangible income (15 ) -0.2 % (5 ) 1.1 % ASC 740-10 Liability 29 0.4 % 27 -6.0 % Penalties - 0.0 % 11 -2.5 % Other (20 ) -0.3 % 3 -0.7 % $ 1,036 14.4 % $ (367 ) 82.0 % Our total deferred tax assets and deferred tax liabilities at October 31, 2021 2020 2021 2020 Deferred Tax Assets: Deferred deduction of expenses related to PPP Loan $ - $ 706 Reserves 383 344 Accrued vacation 241 149 Stock-based compensation awards 144 100 Uniform capitalization 134 92 Lease liability 366 381 Other 77 35 Total deferred tax assets 1,345 1,807 Deferred Tax Liabilities: Amortization / intangible assets (487 ) (479 ) Change in ROU assets (357 ) (359 ) Depreciation / equipment and furnishings (112 ) (135 ) Total deferred tax liabilities (956 ) (973 ) Total net deferred tax assets (liabilities) $ 389 $ 834 Deferred income tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We have evaluated the available evidence supporting the realization of its gross deferred tax assets, including the amount and timing of future taxable income, and have determined it is more likely than not The provision (benefit) for income taxes was $1.0 million or 14.4% and $(0.4) million or 82.0% of income before income taxes for fiscal 2021 2020, 2021 The Company recognizes the benefit of tax positions taken or expected to be taken in its tax returns in the consolidated financial statements when it is more likely than not 50% A reconciliation of the beginning and ending balance to total uncertain tax positions in fiscal years ended October 31, 2021 2020 2021 2020 Balance, at beginning of year $ 107 $ 80 Increase for tax positions related to the current year 44 32 Increase for tax positions related to prior years (1 ) - Increase for interest and penalties 2 6 Statute of limited expirations (11 ) (11 ) Balance, at end of year $ 141 $ 107 We had gross unrecognized tax benefits of $102,000 and $96,000 attributable to U.S. federal and California research tax credits as of October 31, 2021 2020, 2021, October 31, 2021 2020, may may twelve not twelve We are subject to taxation in the United States and state jurisdictions. Our tax years for October 31, 2018 October 31, 2017 On March 27, 2020, five October 31, 2020, |
Note 9 - Stock Options
Note 9 - Stock Options | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 9 Stock options Incentive and non-qualified stock option plans On July 22, 2020, 2020 “2020 September 2020, 2020 2020 October 31, 2021, 2020 Additional disclosures related to stock option plans On December 6, 2019, one four December 6, 2019, ten On January 9, 2020, ● Stock grants for a total of 12,075 common shares to two one $77,000; ● A total of 3,241 incentive stock options to two ● A total of 38,500 shares of restricted stock and 77,000 incentive stock options to three two four one January 9, 2021; twelve three first January 9, 2021. ten On June 30, 2020, one three June 30, 2020, ten On January 12, 2021, one three four one January 12, 2022; twelve three ten On July 16, 2021, ten No 2021. The fair value of each option granted in 2021 2020 2021 2020 Weighted average volatility 52.34 % 52.68 % Expected dividends 0.00 % 0.63 % Expected term (in years) 7.0 7.0 Risk-free interest rate 0.58 % 1.58 % Weighted average fair value of options granted during the year $ 3.38 $ 3.06 Weighted average fair value of options vested during the year $ 3.41 $ 2.38 Expected volatilities are based on historical volatility of our stock price and other factors. We used the historical method to calculate the expected life of the 2021 2020 Additional information regarding all of our outstanding stock options at October 31, 2021 2020 2021 2020 2021 2020 Shares or Weighted Shares or Weighted Price Per Average Price Per Average Share Exercise Price Share Exercise Price Outstanding at beginning of year 789,179 $ 4.66 890,147 $ 3.62 Options granted 117,000 $ 6.57 140,241 $ 6.40 Options exercised (195,528 ) $ 3.10 (241,209 ) $ 1.85 Options canceled or expired (91,793 ) $ 5.88 - $ - Options outstanding at end of year 618,858 $ 5.33 789,179 $ 4.66 Options exercisable at end of year 313,381 $ 5.95 459,513 $ 4.48 Options vested and expected to vest at end of year 618,522 $ 5.35 788,143 $ 4.67 Option price range at end of year 1.900 -8.6969 1.900 -8.6969 Aggregate intrinsic value of options exercised during year $ 642,181 $ 975,638 Weighted average remaining contractual life of options outstanding as of October 31, 2021: Weighted average remaining contractual life of options exercisable as of October 31, 2021: Weighted average remaining contractual life of options vested and expected to vest as of October 31, 2021: Aggregate intrinsic value of options outstanding at October 31, 2021: Aggregate intrinsic value of options exercisable at October 31, 2021: Aggregate intrinsic value of options vested and expected to vest at October 31, 2021: As of October 31, 2021, Under the compensation policies adopted by the Compensation Committee, directors who also are officers and/or employees of the Company do not 2020 2021, not one $25,000 one four September 15, 2020 September 15, 2021 20 2021. |
Note 10 - Retirement Plan
Note 10 - Retirement Plan | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note 10 Retirement plan We have a 401 October 31, 2021 2020, |
Note 11 - Line of Credit and PP
Note 11 - Line of Credit and PPP Loan | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 11 Line of credit and PPP Loan Line of credit In November 2019, first October 31, 2020, December 30, 2020, PPP Loan In May 2020, April 30, 2021, |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 12 Related party transactions A portion of our operating leases are leased from K&K Unlimited, a company controlled by Darren Clark, the former owner and current President of Cables Unlimited. Cables Unlimited’s monthly rent expense under the lease is $16,000 per month, plus payments of all utilities, janitorial expenses, routine maintenance costs, and costs of insurance for Cables Unlimited’s business operations and equipment. During the fiscal year ended October 31, 2021, During fiscal 2021, third two October 31, 2021, October 31, 2021. |
Note 13 - Cash Dividend and Dec
Note 13 - Cash Dividend and Declared Dividends | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Cash Dividend and Declared Dividends [Text Block] | Note 13 Cash dividend and declared dividends We did not 2021; 2020. |
Note 14 - Commitments
Note 14 - Commitments | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 14 Commitments We adopted ASU 2016 02 November 1, 2019, 840. November 1, 2019, We have operating leases for corporate offices, manufacturing facilities, and certain storage units. Our leases have remaining lease terms of one five We also have other operating leases for certain equipment. The components of our facilities and equipment operating lease expenses for the period ended October 31, 2021 Fiscal Year Ended October 31, 2021 Operating lease cost $ 1,019 Short-term lease cost 1 Other information related to leases was as follows (in thousands): October 31, 2021 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,453 Weighted Average Remaining Lease Term Operating leases (in months) 25.26 Weighted Average Discount Rate Operating leases 3.54 % Future minimum lease payments under non-cancellable leases as of October 31, 2021 Year ended October 31, Operating Leases 2022 $ 891 2023 478 2024 234 2025 13 Thereafter 7 Total future minimum lease payments 1,623 Less imputed interest (116 ) Total $ 1,507 Reported as of October 31, 2021 Operating Leases Other current liabilities $ 832 Operating lease liabilities 675 Finance lease liabilities - Total $ 1,507 As of October 31, 2021, October 31, 2021. |
Note 15 - Subsequent Event
Note 15 - Subsequent Event | 12 Months Ended |
Oct. 31, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 15 Subsequent event On December 16, 2021, April 2022, 30 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Business Combinations Policy [Policy Text Block] | Business activities RF Industries, Ltd., together with its four October 31, 2021, five SM |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results may |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The accompanying consolidated financial statements include the accounts of RF Industries, Ltd., Cables Unlimited, Inc. (“Cables Unlimited”), Rel-Tech Electronics, Inc. (“Rel-Tech”), C Enterprises, Inc. (“C Enterprises”), and Schroff Technologies International, Ltd. (“Schrofftech”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash equivalents The Company considers all highly-liquid investments with an original maturity of three |
Revenue [Policy Text Block] | Revenue recognition On November 1, 2018, No. 2014 09, 606 606” 606 606, five 1 2 3 4 5 no |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined using the weighted average cost of accounting. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value due to damage, physical deterioration, obsolescence, changes in price levels, or other causes, we reduce our inventory to a new cost basis through a charge to cost of sales in the period in which it occurs. The determination of market value and the estimated volume of demand used in the lower of cost or market analysis requires significant judgment. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment Equipment, tooling and furniture are recorded at cost and depreciated over their estimated useful lives (generally three five |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill is not October, We assess whether a goodwill impairment exists using both qualitative and quantitative assessments at the reporting level. Our qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not not not not Under the amendments of this update, the goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss should be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. No October 31, 2021 2020. 19 October 31, 2021 October 31, 2021. no On June 15, 2011, May 19, 2015, June 1, 2015, March 15, 2019, no November 4, 2019, |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived assets We assess property, plant and equipment and intangible assets, which are considered definite-lived assets for impairment. Definite-lived assets are reviewed when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not no We amortize our intangible assets with definite useful lives over their estimated useful lives and review these assets for impairment. In addition, we test our trademarks and indefinite-lived asset for impairment at least annually or more frequently if events or changes in circumstances indicate that these assets may No October 31, 2021 2020. |
Fair Value Measurement, Policy [Policy Text Block] | Fair value measurement We measure at fair value certain financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two Level 1— Level 2— not Level 3— one As of October 31, 2021 2020, |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible assets Intangible assets consist of the following as of October 31, 2021 2020 2021 2020 Amortizable intangible assets: Non-compete agreement (estimated life 5 $ 423 $ 423 Accumulated amortization (289 ) (245 ) 134 178 Customer relationships (estimated lives 7 15 5,058 5,058 Accumulated amortization (2,711 ) (2,367 ) 2,347 2,691 Backlog (estimated life 1 2 287 287 Accumulated amortization (287 ) (266 ) - 21 Patents (estimated life 14 368 368 Accumulated amortization (110 ) (77 ) 258 291 Totals $ 2,739 $ 3,181 Non-amortizable intangible assets: Trademarks $ 1,174 $ 1,174 Amortization expense was $442,000 and $692,000 for the years ended October 31, 2021 2020. There was no October 31, 2021 2020. Estimated amortization expense related to finite-lived intangible assets is as follows (in thousands): Year ending October 31, Amount 2022 $ 374 2023 364 2024 364 2025 320 2026 320 Thereafter 997 Total $ 2,739 |
Advertising Cost [Policy Text Block] | Advertising We expense the cost of advertising and promotions as incurred. Advertising costs charged to operations were approximately $314,000 and $295,000 in 2021 2020, |
Research and Development Expense, Policy [Policy Text Block] | Research and development Research and development costs are expensed as incurred. Our research and development expenses relate to its engineering activities, which consist of the design and development of new products for specific customers, as well as the design and engineering of new or redesigned products for the industry in general. During the years ended October 31, 2021 2020, |
Income Tax, Policy [Policy Text Block] | Income taxes We account for income taxes under the asset and liability method, based on the income tax laws and rates in the jurisdictions in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Developing the provision (benefit) for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may We had adopted the provisions of ASC 740 10, 740 10 not not 8 |
Share-based Payment Arrangement [Policy Text Block] | Stock options For stock option grants to employees, we recognize compensation expense based on the estimated fair value of the options at the date of grant. Stock-based employee compensation expense is recognized on a straight-line basis over the requisite service period. We issue previously unissued common shares upon the exercise of stock options. For the fiscal years ended October 31, 2021 2020, October 31, 2021 2020, |
Earnings Per Share, Policy [Policy Text Block] | Earnings per share Basic earnings per share is calculated by dividing net income applicable to common stockholders by the weighted average number of common shares outstanding during the period. The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally those issuable upon the exercise of stock options, were issued and the treasury stock method had been applied during the period. The greatest number of shares potentially issuable upon the exercise of stock options in any period for the years ended October 31, 2021 2020, not The following table summarizes the computation of basic and diluted earnings per share: 2021 2020 Numerators: Consolidated net income (A) $ 6,181,000 $ (81,000 ) Denominators: Weighted average shares outstanding for basic earnings per share (B) 9,978,683 9,678,822 Add effects of potentially dilutive securities - assumed exercise of stock options 175,556 - Weighted average shares outstanding for diluted earnings per share (C) 10,154,239 9,678,822 Basic earnings per share (A)/(B) $ 0.62 $ (0.01 ) Diluted earnings per share (A)/(C) $ 0.61 $ (0.01 ) |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting standards Recently issued accounting pronouncements not In June 2016, 2016 13, December 15, 2019. November 2019, 2019 10, 326 December 15, 2022. Recently issued accounting pronouncements adopted: In February 2016, No. 2016 02, 2016 02, November 1, 2019, 2020, 12 November 1, 2019, not In January 2017, No. 2017 04, 2 November 1, 2020, 2021, not October 31, 2021. |
Note 1 - Business Activities _2
Note 1 - Business Activities and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2021 2020 Amortizable intangible assets: Non-compete agreement (estimated life 5 $ 423 $ 423 Accumulated amortization (289 ) (245 ) 134 178 Customer relationships (estimated lives 7 15 5,058 5,058 Accumulated amortization (2,711 ) (2,367 ) 2,347 2,691 Backlog (estimated life 1 2 287 287 Accumulated amortization (287 ) (266 ) - 21 Patents (estimated life 14 368 368 Accumulated amortization (110 ) (77 ) 258 291 Totals $ 2,739 $ 3,181 Non-amortizable intangible assets: Trademarks $ 1,174 $ 1,174 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending October 31, Amount 2022 $ 374 2023 364 2024 364 2025 320 2026 320 Thereafter 997 Total $ 2,739 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2021 2020 Numerators: Consolidated net income (A) $ 6,181,000 $ (81,000 ) Denominators: Weighted average shares outstanding for basic earnings per share (B) 9,978,683 9,678,822 Add effects of potentially dilutive securities - assumed exercise of stock options 175,556 - Weighted average shares outstanding for diluted earnings per share (C) 10,154,239 9,678,822 Basic earnings per share (A)/(B) $ 0.62 $ (0.01 ) Diluted earnings per share (A)/(C) $ 0.61 $ (0.01 ) |
Note 2 - Business Acquisition (
Note 2 - Business Acquisition (Tables) - Schrofftech [Member] | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration paid $ 4,000,000 Earn-out liability 1,249,000 Total purchase price $ 5,249,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets $ 1,168,000 Fixed assets 58,000 Intangible assets 3,299,000 Goodwill 1,127,000 Non-interest bearing liabilities (403,000 ) Net assets $ 5,249,000 |
Note 4 - Inventories and Majo_2
Note 4 - Inventories and Major Vendors (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2021 2020 Raw materials and supplies $ 6,422 $ 4,410 Work in process 381 196 Finished goods 4,376 3,980 Totals $ 11,179 $ 8,586 |
Note 5 - Other Current Assets (
Note 5 - Other Current Assets (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | 2021 2020 Employee retention credit ("ERC") $ 1,774 $ - Prepaid taxes 314 - Prepaid expense 439 393 Other 366 420 Totals $ 2,893 $ 813 |
Note 6 - Accrued Expenses and_2
Note 6 - Accrued Expenses and Other Long-term Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2021 2020 Wages payable $ 2,607 $ 1,506 Accrued receipts 1,711 518 Other current liabilities 716 549 Totals $ 5,034 $ 2,573 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Description Level 3 Earn-out liability $ - Description Level 3 Earn-out liability $ 370 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Level 3 October 31, 2021 July 31, 2021 April 30, 2021 January 31, 2021 October 31, 2020 Beginning balance $ - $ - $ 296 $ 370 $ 1,249 Change in value - - (296 ) (74 ) (879 ) Ending balance $ - $ - $ - $ 296 $ 370 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | 2021 2020 United States $ 54,960 $ 41,633 Foreign Countries: Canada 1,856 933 Mexico 130 12 All Other 478 466 2,464 1,411 Totals $ 57,424 $ 43,044 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | RF Connector Custom Cabling and Manufacturing and Cable Assembly Assembly Corporate Total Check 2021 Net sales $ 15,622 $ 41,802 $ - $ 57,424 $ 57,424 Income (loss) before benefit for income taxes 2,494 1,921 2,802 * 7,217 7,217 Depreciation and amortization 141 629 - 770 770 Total assets 7,367 25,875 16,406 49,648 49,648 2020 Net sales $ 14,554 $ 28,490 $ - $ 43,044 $ 43,044 Income before provision for income taxes 2,019 (2,423 ) (44 ) (448 ) (448 ) Depreciation and amortization 159 855 - 1,014 1,014 Total assets 7,822 15,486 17,514 40,822 40,822 |
Note 8 - Income Tax Provision (
Note 8 - Income Tax Provision (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2021 2020 Current: Federal $ 401 $ 279 State 189 143 590 422 Deferred: Federal 323 (593 ) State 123 (196 ) 446 (789 ) $ 1,036 $ (367 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2021 2020 % of Pretax % of Pretax Amount Income Amount Income Income taxes at federal statutory rate $ 1,516 21.0 % $ (94 ) 21.0 % State tax provision, net of federal tax benefit 246 3.4 % (41 ) 9.2 % Nondeductible differences: Stock options (86 ) -1.2 % (123 ) 27.5 % PPP loan forgiveness (588 ) -8.1 % - 0.0 % Meals and entertainment 1 0.0 % 2 -0.4 % Parking disallowance 4 0.1 % 5 -1.1 % R&D credits (51 ) -0.7 % (152 ) 33.9 % Foreign derived intangible income (15 ) -0.2 % (5 ) 1.1 % ASC 740-10 Liability 29 0.4 % 27 -6.0 % Penalties - 0.0 % 11 -2.5 % Other (20 ) -0.3 % 3 -0.7 % $ 1,036 14.4 % $ (367 ) 82.0 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2021 2020 Deferred Tax Assets: Deferred deduction of expenses related to PPP Loan $ - $ 706 Reserves 383 344 Accrued vacation 241 149 Stock-based compensation awards 144 100 Uniform capitalization 134 92 Lease liability 366 381 Other 77 35 Total deferred tax assets 1,345 1,807 Deferred Tax Liabilities: Amortization / intangible assets (487 ) (479 ) Change in ROU assets (357 ) (359 ) Depreciation / equipment and furnishings (112 ) (135 ) Total deferred tax liabilities (956 ) (973 ) Total net deferred tax assets (liabilities) $ 389 $ 834 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2021 2020 Balance, at beginning of year $ 107 $ 80 Increase for tax positions related to the current year 44 32 Increase for tax positions related to prior years (1 ) - Increase for interest and penalties 2 6 Statute of limited expirations (11 ) (11 ) Balance, at end of year $ 141 $ 107 |
Note 9 - Stock Options (Tables)
Note 9 - Stock Options (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2021 2020 Weighted average volatility 52.34 % 52.68 % Expected dividends 0.00 % 0.63 % Expected term (in years) 7.0 7.0 Risk-free interest rate 0.58 % 1.58 % Weighted average fair value of options granted during the year $ 3.38 $ 3.06 Weighted average fair value of options vested during the year $ 3.41 $ 2.38 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | 2021 2020 Shares or Weighted Shares or Weighted Price Per Average Price Per Average Share Exercise Price Share Exercise Price Outstanding at beginning of year 789,179 $ 4.66 890,147 $ 3.62 Options granted 117,000 $ 6.57 140,241 $ 6.40 Options exercised (195,528 ) $ 3.10 (241,209 ) $ 1.85 Options canceled or expired (91,793 ) $ 5.88 - $ - Options outstanding at end of year 618,858 $ 5.33 789,179 $ 4.66 Options exercisable at end of year 313,381 $ 5.95 459,513 $ 4.48 Options vested and expected to vest at end of year 618,522 $ 5.35 788,143 $ 4.67 Option price range at end of year 1.900 -8.6969 1.900 -8.6969 Aggregate intrinsic value of options exercised during year $ 642,181 $ 975,638 |
Note 14 - Commitments (Tables)
Note 14 - Commitments (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Fiscal Year Ended October 31, 2021 Operating lease cost $ 1,019 Short-term lease cost 1 |
Lessee, Leases, Other Information [Table Text Block] | October 31, 2021 Supplemental Cash Flows Information Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,453 Weighted Average Remaining Lease Term Operating leases (in months) 25.26 Weighted Average Discount Rate Operating leases 3.54 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year ended October 31, Operating Leases 2022 $ 891 2023 478 2024 234 2025 13 Thereafter 7 Total future minimum lease payments 1,623 Less imputed interest (116 ) Total $ 1,507 Reported as of October 31, 2021 Operating Leases Other current liabilities $ 832 Operating lease liabilities 675 Finance lease liabilities - Total $ 1,507 |
Note 1 - Business Activities _3
Note 1 - Business Activities and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Nov. 01, 2019 | |
Amortization of Intangible Assets, Total | $ 442,000 | $ 692,000 | |
Advertising Expense | 314,000 | 295,000 | |
Research and Development Expense, Total | 1,479,000 | 1,989,000 | |
Share-based Payment Arrangement, Noncash Expense, Total | $ 769,000 | $ 556,000 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 386,364 | 402,838 | |
Operating Lease, Right-of-Use Asset | $ 1,453,000 | $ 1,421,000 | |
Operating Lease, Liability, Total | 1,507,000 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Right-of-Use Asset | $ 2,300,000 | ||
Operating Lease, Liability, Total | $ 2,400,000 | ||
Trademarks [Member] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||
Weighted Average [Member] | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years 10 months 6 days |
Note 1 - Business Activities _4
Note 1 - Business Activities and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Amortizable intangible assets | $ 2,739 | $ 3,181 |
Trademarks | 1,174 | 1,174 |
Trademarks [Member] | ||
Trademarks | 1,174 | 1,174 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, gross | 423 | 423 |
Accumulated amortization | (289) | (245) |
Amortizable intangible assets | 134 | 178 |
Customer Relationships [Member] | ||
Amortizable intangible assets, gross | 5,058 | 5,058 |
Accumulated amortization | (2,711) | (2,367) |
Amortizable intangible assets | 2,347 | 2,691 |
Order or Production Backlog [Member] | ||
Amortizable intangible assets, gross | 287 | 287 |
Accumulated amortization | (287) | (266) |
Amortizable intangible assets | 0 | 21 |
Patents [Member] | ||
Amortizable intangible assets, gross | 368 | 368 |
Accumulated amortization | (110) | (77) |
Amortizable intangible assets | $ 258 | $ 291 |
Note 1 - Business Activities _5
Note 1 - Business Activities and Summary of Significant Accounting Policies - Intangible Assets (Details) (Parentheticals) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, estimated life (Year) | 5 years | 5 years |
Customer Relationships [Member] | Minimum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 7 years | 7 years |
Customer Relationships [Member] | Maximum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 15 years | 15 years |
Order or Production Backlog [Member] | Minimum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 1 year | 1 year |
Order or Production Backlog [Member] | Maximum [Member] | ||
Amortizable intangible assets, estimated life (Year) | 2 years | 2 years |
Patents [Member] | ||
Amortizable intangible assets, estimated life (Year) | 14 years | 14 years |
Note 1 - Business Activities _6
Note 1 - Business Activities and Summary of Significant Accounting Policies - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
2022 | $ 374 | |
2023 | 364 | |
2024 | 364 | |
2025 | 320 | |
2026 | 320 | |
Thereafter | 997 | |
Total | $ 2,739 | $ 3,181 |
Note 1 - Business Activities _7
Note 1 - Business Activities and Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Consolidated net income (A) | $ 6,181,000 | $ (81,000) |
Weighted average shares outstanding for basic earnings per share (B) (in shares) | 9,978,683 | 9,678,822 |
Add effects of potentially dilutive securities - assumed exercise of stock options (in shares) | 175,556 | 0 |
Weighted average shares outstanding for diluted earnings per share (C) (in shares) | 10,154,239 | 9,678,822 |
Basic earnings per share (A)/(B) (in dollars per share) | $ 0.62 | $ (0.01) |
Diluted earnings per share (A)/(C) (in dollars per share) | $ 0.61 | $ (0.01) |
Note 2 - Business Acquisition_2
Note 2 - Business Acquisition (Details Textual) - Schrofftech [Member] - USD ($) | Nov. 04, 2019 | Nov. 01, 2019 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2021 |
Payments to Acquire Businesses, Gross | $ 4,000,000 | $ 4,000,000 | ||||
Business Combination, Contingent Consideration Arrangements, Target Period (Year) | 2 years | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 5,950,000 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Business Combination, Acquisition Related Costs | $ 0 | $ 43,000 | $ 108,000 | $ 151,000 |
Note 2 - Business Acquisition -
Note 2 - Business Acquisition - Components of the Purchase Price of Schroff Technologies International, Inc. (Details) - Schrofftech [Member] - USD ($) | Nov. 04, 2019 | Nov. 01, 2019 |
Cash consideration paid | $ 4,000,000 | $ 4,000,000 |
Earn-out liability | 1,249,000 | |
Total purchase price | $ 5,249,000 |
Note 2 - Business Acquisition_3
Note 2 - Business Acquisition - Allocation of Estimated Purchase Price of Schroff Technologies International, Inc. (Details) - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 | Nov. 01, 2019 |
Goodwill | $ 2,467,000 | $ 2,467,000 | |
Schrofftech [Member] | |||
Current assets | $ 1,168,000 | ||
Fixed assets | 58,000 | ||
Intangible assets | 3,299,000 | ||
Goodwill | 1,127,000 | ||
Non-interest bearing liabilities | (403,000) | ||
Net assets | $ 5,249,000 |
Note 3 - Concentrations of Cr_2
Note 3 - Concentrations of Credit Risk (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Cash, Uninsured Amount | $ 12.3 | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Wireless Carrier [Member] | ||
Concentration Risk, Percentage | 21.00% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | One Distributor [Member] | ||
Concentration Risk, Percentage | 11.00% | 14.00% |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Distributor Two [Member] | ||
Concentration Risk, Percentage | 12.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Wireless Carrier [Member] | ||
Concentration Risk, Percentage | 28.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Distributor [Member] | ||
Concentration Risk, Percentage | 8.00% | 12.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Distributor Two [Member] | ||
Concentration Risk, Percentage | 12.00% |
Note 4 - Inventories and Majo_3
Note 4 - Inventories and Major Vendors (Details Textual) - Supplier Concentration Risk [Member] - Inventory Purchases [Member] | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Number of Major Vendors | 1 | 0 |
One Vendor [Member] | ||
Concentration Risk, Percentage | 26.00% |
Note 4 - Inventories and Majo_4
Note 4 - Inventories and Major Vendors - Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Raw materials and supplies | $ 6,422 | $ 4,410 |
Work in process | 381 | 196 |
Finished goods | 4,376 | 3,980 |
Totals | $ 11,179 | $ 8,586 |
Note 5 - Other Current Assets -
Note 5 - Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Employee retention credit ("ERC") | $ 1,774 | $ 0 |
Prepaid taxes | 314 | 0 |
Prepaid expense | 439 | 393 |
Other | 366 | 420 |
Totals | $ 2,893 | $ 813 |
Note 6 - Accrued Expenses and_3
Note 6 - Accrued Expenses and Other Long-term Liabilities (Details Textual) | Nov. 04, 2019USD ($) |
Schrofftech [Member] | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 |
Note 6 - Accrued Expenses and_4
Note 6 - Accrued Expenses and Other Long-term Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Wages payable | $ 2,607 | $ 1,506 |
Accrued receipts | 1,711 | 518 |
Other current liabilities | 716 | 549 |
Totals | $ 5,034 | $ 2,573 |
Note 6 - Accrued Expenses and_5
Note 6 - Accrued Expenses and Other Long-term Liabilities - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Earn-out liability | $ 0 | $ 370 |
Note 6 - Accrued Expenses and_6
Note 6 - Accrued Expenses and Other Long-term Liabilities - Level 3 Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | |
Beginning balance | $ 0 | $ 0 | $ 296 | $ 370 | $ 1,249 |
Change in value | 0 | 0 | (296) | (74) | (879) |
Ending balance | $ 0 | $ 0 | $ 0 | $ 296 | $ 370 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) $ in Thousands | 12 Months Ended |
Oct. 31, 2021USD ($) | |
Gain (Loss) on Extinguishment of Debt, Total | $ 2,807 |
Other Income [Member] | Paycheck Protection Program CARES Act [Member] | |
Gain (Loss) on Extinguishment of Debt, Total | $ 2,800 |
Note 7 - Segment Information -
Note 7 - Segment Information - Sales by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Net sales | $ 57,424 | $ 43,044 |
UNITED STATES | ||
Net sales | 54,960 | 41,633 |
CANADA | ||
Net sales | 1,856 | 933 |
MEXICO | ||
Net sales | 130 | 12 |
All Other Foreign Countries [Member] | ||
Net sales | 478 | 466 |
Non-US [Member] | ||
Net sales | $ 2,464 | $ 1,411 |
Note 7 - Segment Information _2
Note 7 - Segment Information - Net Sales, Income Before Provision for Income Taxes and Other Related Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | ||
Net sales | $ 57,424 | $ 43,044 | |
Income (loss) before benefit for income taxes | 7,217 | (448) | |
Depreciation and amortization | 770 | 1,014 | |
Total assets | 49,648 | 40,822 | |
Corporate, Non-Segment [Member] | |||
Net sales | 0 | 0 | |
Income (loss) before benefit for income taxes | 2,802 | [1] | (44) |
Depreciation and amortization | 0 | 0 | |
Total assets | 16,406 | 17,514 | |
RF Connector and Cable Assembly [Member] | Operating Segments [Member] | |||
Net sales | 15,622 | 14,554 | |
Income (loss) before benefit for income taxes | 2,494 | 2,019 | |
Depreciation and amortization | 141 | 159 | |
Total assets | 7,367 | 7,822 | |
Custom Cabling Manufacturing and Assembly [Member] | Operating Segments [Member] | |||
Net sales | 41,802 | 28,490 | |
Income (loss) before benefit for income taxes | 1,921 | (2,423) | |
Depreciation and amortization | 629 | 855 | |
Total assets | $ 25,875 | $ 15,486 | |
[1] | For the 12 months ended October 31, 2021, other income consists of the $2.8M PPP loans that were forgiven. |
Note 8 - Income Tax Provision_2
Note 8 - Income Tax Provision (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Expense (Benefit), Total | $ 1,036,000 | $ (367,000) | |
Effective Income Tax Rate Reconciliation, Percent, Total | 14.40% | 82.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | |
Unrecognized Tax Benefits, Ending Balance | $ 141,000 | $ 107,000 | $ 80,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 13,000 | 11,000 | |
Effective Income Tax Rate Reconciliation, CARES Act, Operating Loss Carryforwards Carried Back, Amount | (35,000) | ||
Domestic Tax Authority [Member] | |||
Unrecognized Tax Benefits, Ending Balance | $ 102,000 | $ 96,000 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Open Tax Year | 2018 2019 2020 2021 | ||
State and Local Jurisdiction [Member] | |||
Open Tax Year | 2017 2018 2019 2020 2021 |
Note 8 - Income Tax Provision -
Note 8 - Income Tax Provision - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Federal | $ 401 | $ 279 |
State | 189 | 143 |
Current Income Tax Expense (Benefit), Total | 590 | 422 |
Federal | 323 | (593) |
State | 123 | (196) |
Deferred Federal, State and Local, Tax Expense (Benefit), Total | 446 | (789) |
Income Tax Expense (Benefit), Total | $ 1,036 | $ (367) |
Note 8 - Income Tax Provision_3
Note 8 - Income Tax Provision - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Income taxes at federal statutory rate | $ 1,516 | $ (94) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
State tax provision, net of federal tax benefit | $ 246 | $ (41) |
State tax provision, net of federal tax benefit, percentage | 3.40% | 9.20% |
Stock options | $ (86) | $ (123) |
Stock options, percentage | (1.20%) | 27.50% |
PPP loan forgiveness | $ (588) | $ 0 |
PPP loan forgiveness, percentage | (8.10%) | 0.00% |
Meals and entertainment | $ 1 | $ 2 |
Meals and entertainment, percentage | 0.00% | (0.40%) |
Parking disallowance | $ 4 | $ 5 |
Parking disallowance, percentage | 0.10% | (1.10%) |
R&D credits | $ (51) | $ (152) |
R&D credits, percentage | (0.70%) | 33.90% |
Foreign derived intangible income | $ (15) | $ (5) |
Foreign derived intangible income, percentage | (0.20%) | 1.10% |
ASC 740-10 Liability | $ 29 | $ 27 |
ASC 740-10 Liability, percentage | 0.40% | (6.00%) |
Penalties | $ 0 | $ 11 |
Penalties, percentage | 0.00% | (2.50%) |
Other | $ (20) | $ 3 |
Other, percentage | (0.30%) | (0.70%) |
Income Tax Expense (Benefit), Total | $ 1,036 | $ (367) |
Percentage | 14.40% | 82.00% |
Note 8 - Income Tax Provision_4
Note 8 - Income Tax Provision - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Deferred deduction of expenses related to PPP Loan | $ 0 | $ 706 |
Reserves | 383 | 344 |
Accrued vacation | 241 | 149 |
Stock-based compensation awards | 144 | 100 |
Uniform capitalization | 134 | 92 |
Lease liability | 366 | 381 |
Other | 77 | 35 |
Total deferred tax assets | 1,345 | 1,807 |
Amortization / intangible assets | (487) | (479) |
Change in ROU assets | (357) | (359) |
Depreciation / equipment and furnishings | (112) | (135) |
Total deferred tax liabilities | (956) | (973) |
Total net deferred tax assets (liabilities) | $ 389 | $ 834 |
Note 8 - Income Tax Provision_5
Note 8 - Income Tax Provision - Adjustments to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Balance, at beginning of year | $ 107 | $ 80 |
Increase for tax positions related to the current year | 44 | 32 |
Increase for tax positions related to prior years | (1) | 0 |
Increase for interest and penalties | 2 | 6 |
Statute of limited expirations | (11) | (11) |
Balance, at end of year | $ 141 | $ 107 |
Note 9 - Stock Options (Details
Note 9 - Stock Options (Details Textual) - USD ($) | Jul. 16, 2021 | Jan. 12, 2021 | Jun. 30, 2020 | Jan. 09, 2020 | Jan. 06, 2020 | Oct. 31, 2021 | Sep. 15, 2020 | Jul. 22, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 6 years 4 months 9 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term (Year) | 5 years 7 months 2 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term (Year) | 6 years 4 months 9 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1,544,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 628,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 1,533,000 | |||||||
Share-based Payment Arrangement, Nonemployee [Member] | ||||||||
Nonemployee Director, Annual Compensation | $ 50,000 | |||||||
Incentive Stock Options [Member] | ||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 527,000 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 7 months 20 days | |||||||
Restricted Stock [Member] | ||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 393,000 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 1 month 13 days | |||||||
One Employee [Member] | Incentive Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 10,000 | 50,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 2,500 | 10,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number to Vest Each Year (in shares) | 2,500 | 10,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | 10 years | ||||||
Two Officers and One Employee [Member] | ||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 12,075 | |||||||
Share-based Payment Arrangement, Expense | $ 77,000 | |||||||
Two Employees [Member] | Incentive Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 3,241 | |||||||
Three Officers and Two Employees [Member] | Incentive Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 77,000 | |||||||
Three Officers and Two Employees [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 38,500 | |||||||
Three Officers and Two Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||||||
Three Officers and Two Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting on January 9, 2021 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||
Three Officers and Two Employees [Member] | Restricted Stock and Incentive Stock Options [Member] | Vesting Quarterly After January 9, 2021 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
One Manager and Three Officers [Member] | Incentive Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 67,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||||||
One Manager and Three Officers [Member] | Incentive Stock Options [Member] | Vesting on January 12, 2022 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||
One Manager and Three Officers [Member] | Incentive Stock Options [Member] | Vesting Quarterly After January 12, 2022 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
One Manager and Three Officers [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 33,500 | |||||||
Chief Executive Officer [Member] | Incentive Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 50,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||||||
Non-employee Directors and Chairperson of Committee on Board [Member] | ||||||||
Annual Payable, Additional Compensation | $ 15,000 | |||||||
Share Price, 20 Day Average (in dollars per share) | $ 4.34 | |||||||
The 2020 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,250,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,123,232 |
Note 9 - Stock Options - Assump
Note 9 - Stock Options - Assumptions (Details) - $ / shares | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Weighted average volatility | 52.34% | 52.68% |
Expected dividends | 0.00% | 0.63% |
Expected term (in years) (Year) | 7 years | 7 years |
Risk-free interest rate | 0.58% | 1.58% |
Weighted average fair value of options granted during the year (in dollars per share) | $ 3.38 | $ 3.06 |
Weighted average fair value of options vested during the year (in dollars per share) | $ 3.41 | $ 2.38 |
Note 9 - Stock Options - Option
Note 9 - Stock Options - Options Outstanding (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Outstanding at beginning of year (in shares) | 789,179 | 890,147 |
Outstanding at beginning of year, weighted average exercise price (in dollars per share) | $ 4.66 | $ 3.62 |
Options granted (in shares) | 117,000 | 140,241 |
Options granted, weighted average exercise price (in dollars per share) | $ 6.57 | $ 6.40 |
Options exercised (in shares) | (195,528) | (241,209) |
Options exercised, weighted average exercise price (in dollars per share) | $ 3.10 | $ 1.85 |
Options canceled or expired (in shares) | (91,793) | 0 |
Options canceled or expired, weighted average exercise price (in dollars per share) | $ 5.88 | $ 0 |
Options outstanding at end of year (in shares) | 618,858 | 789,179 |
Options outstanding at end of year, weighted average exercise price (in dollars per share) | $ 5.33 | $ 4.66 |
Options exercisable at end of year (in shares) | 313,381 | 459,513 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 5.95 | $ 4.48 |
Options vested and expected to vest at end of year (in shares) | 618,522 | 788,143 |
Options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 5.35 | $ 4.67 |
Option price range at end of year, lower limit (in dollars per share) | 1.90 | 1.90 |
Option price range at end of year, upper limit (in dollars per share) | $ 8.69 | $ 8.69 |
Aggregate intrinsic value of options exercised during year | $ 642,181 | $ 975,638 |
Note 10 - Retirement Plan (Deta
Note 10 - Retirement Plan (Details Textual) - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Defined Contribution Plan, Cost | $ 413,000 | $ 394,000 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% |
Note 11 - Line of Credit and _2
Note 11 - Line of Credit and PPP Loan (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2020 | Nov. 30, 2019 | Oct. 31, 2020 | Oct. 31, 2021 | Dec. 30, 2020 | |
Paycheck Protection Program CARES Act [Member] | |||||
Proceeds from Issuance of Long-term Debt, Total | $ 2,800 | $ 2,789 | |||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||||
Long-term Line of Credit, Total | $ 0 | $ 0 | |||
Revolving Credit Facility [Member] | LIBOR Daily Floating Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) | 12 Months Ended |
Oct. 31, 2021USD ($) | |
K and K Unlimited [Member] | |
Lessee, Operating Lease, Monthly Rent | $ 16,000 |
Operating Lease, Expense | 164,000 |
Elmec [Member] | |
Accrued Royalties, Current | 2,000 |
Elmec [Member] | Royalty Payments [Member] | |
Related Party Transaction, Amounts of Transaction | $ 17,000 |
Note 13 - Cash Dividend and D_2
Note 13 - Cash Dividend and Declared Dividends (Details Textual) - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Payments of Ordinary Dividends, Common Stock | $ 0 | $ 388,000 |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.02 |
Note 14 - Commitments (Details
Note 14 - Commitments (Details Textual) - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
Operating Lease, Right-of-Use Asset | $ 1,453,000 | $ 1,421,000 |
Operating Lease, Liability, Total | 1,507,000 | |
Finance Lease, Liability, Total | 0 | |
Other Current Liabilities [Member] | ||
Operating Lease, Liability, Current | 832,000 | |
K and K Unlimited [Member] | ||
Lessee, Operating Lease, Monthly Rent | $ 16,000 | |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 5 years |
Note 14 - Commitments - Operati
Note 14 - Commitments - Operating Lease Expense (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2021USD ($) | |
Operating lease cost | $ 1,019 |
Short-term lease cost | $ 1 |
Note 14 - Commitments - Other I
Note 14 - Commitments - Other Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2021USD ($) | |
Right of use assets obtained in exchange for lease obligations operating leases | $ 1,453 |
Weighted Average Remaining Lease Term, Operating leases (months) (Month) | 25 months 7 days |
Weighted Average Discount Rate, Operating leases | 3.54% |
Note 14 - Commitments - Future
Note 14 - Commitments - Future Minimum Lease Payments (Details) - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
2022 | $ 891,000 | |
2023 | 478,000 | |
2024 | 234,000 | |
2025 | 13,000 | |
Thereafter | 7,000 | |
Total future minimum lease payments | 1,623,000 | |
Less imputed interest | (116,000) | |
Total | 1,507,000 | |
Operating lease liabilities | 675,000 | $ 635,000 |
Total | 1,507,000 | |
Other Current Liabilities [Member] | ||
Other current liabilities | $ 832,000 |
Note 15 - Subsequent Event (Det
Note 15 - Subsequent Event (Details Textual) - Forecast [Member] | 5 Months Ended |
Apr. 30, 2022USD ($) | |
Credit Facility [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity and Term Loan Face Amount | $ 20,000,000 |
Microlab/FXR LLC [Member] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Business Combination, Consideration Transferred, Total | $ 24,250,000 |