Optical Cable Corp. Files 10-Q for Q1 2024

TL;DR

<b>Optical Cable Corp. filed its Q1 2024 10-Q, detailing financial positions, liabilities, and credit facilities.</b>

AI Summary

OPTICAL CABLE CORP (OCC) filed a Quarterly Report (10-Q) with the SEC on March 13, 2024. Optical Cable Corp. reported financial results for the first quarter of fiscal year 2024, ending January 31, 2024. The company's fiscal year ends on October 31st. The filing details various liabilities including "Other Noncurrent Liabilities" and "Accounts Payable and Accrued Liabilities Current" as of January 31, 2024, and October 31, 2023. Information regarding operating leases for office, manufacturing, and warehouse space in Roanoke, Virginia, and Plano, Texas, is provided. Details on the company's revolving credit facility with NorthMill Capital, LLC, and a Virginia Real Estate Loan are included.

Why It Matters

For investors and stakeholders tracking OPTICAL CABLE CORP, this filing contains several important signals. This filing provides a snapshot of Optical Cable Corp.'s financial health and operational commitments as of the end of the first fiscal quarter. Investors can assess the company's debt structure, lease obligations, and credit arrangements, which are crucial for understanding its financial stability and future operational capacity.

Risk Assessment

Risk Level: medium — OPTICAL CABLE CORP shows moderate risk based on this filing. The filing contains detailed financial information, including liabilities and credit facilities, which require careful analysis to assess the company's financial risk.

Analyst Insight

Review the detailed breakdown of liabilities and credit facilities to understand the company's financial obligations and borrowing capacity.

Key Numbers

• 2024-01-31 — Report Period End Date (Q1 2024)
• 2023-10-31 — Prior Period End Date (Fiscal Year End 2023)
• 2020-07-24 — Revolving Credit Facility Agreement Date (NorthMill Capital, LLC)

Key Players & Entities

• OPTICAL CABLE CORP (company) — Filer name
• OCC (company) — Ticker symbol
• NorthMill Capital, LLC (company) — Lender for revolving credit facility
• Roanoke, Virginia (location) — Location of operating leases
• Plano, Texas (location) — Location of operating leases

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces risk due to significant revenue concentration from a limited number of customers, specifically mentioning 'Customer One'.

Key Dates

• 2024-01-31: Quarterly Report (10-Q) Period End — End of Q1 Fiscal Year 2024
• 2023-10-31: Prior Fiscal Year End — End of Fiscal Year 2023
• 2020-07-24: Revolving Credit Facility Agreement Date — Agreement with NorthMill Capital, LLC

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive update on the company's financial performance and position during the quarter.)

Revolving Credit Facility

A type of credit facility that allows a company to borrow, repay, and re-borrow funds up to a certain limit. (Indicates the company's access to short-term financing and its relationship with lenders like NorthMill Capital, LLC.)

Customer Concentration Risk

The risk associated with having a significant portion of revenue derived from a small number of customers. (Highlights potential vulnerability if a major customer reduces or terminates their business.)

Filing Documents

• occ20240131_10q.htm (10-Q) — 542KB
• ex_633689.htm (EX-31.1) — 14KB
• ex_633688.htm (EX-31.2) — 14KB
• ex_633697.htm (EX-32.1) — 5KB
• ex_633687.htm (EX-32.2) — 5KB
• 0001437749-24-007574.txt (&nbsp;) — 3138KB
• occ-20240131.xsd (EX-101.SCH) — 34KB
• occ-20240131_cal.xml (EX-101.CAL) — 34KB
• occ-20240131_def.xml (EX-101.DEF) — 231KB
• occ-20240131_lab.xml (EX-101.LAB) — 217KB
• occ-20240131_pre.xml (EX-101.PRE) — 255KB
• occ20240131_10q_htm.xml (XML) — 274KB

Financial Statements (unaudited)

Financial Statements (unaudited) 2 Condensed Consolidated Balance Sheets – January 31, 2024 and October 31, 2023 2 Condensed Consolidated Statements of Operations – Three Months Ended January 31, 2024 and 2023 3 Condensed Consolidated Statements of Shareholders' Equity – Three Months Ended January 31, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows –Three Months Ended January 31, 2024 and 2023 5 Condensed Notes to Condensed Consolidated Financial Statements 6 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 14 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II. OTHER INFORMATION Item 5. Other Information 26 Item 6. Exhibits 27

SIGNATURES

SIGNATURES 31 1 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements OPTICAL CABLE CORPORATION Condensed Consolidated Balance Sheets (Unaudited) January 31, October 31, 2024 2023 Assets Current assets: Cash $ 220,980 $ 1,468,709 Trade accounts receivable, net of allowance for credit losses of $ 59,215 at January 31, 2024 and $ 71,189 at October 31, 2023 7,397,512 8,727,810 Income taxes refundable - current 81,844 81,844 Other receivables 553,108 397,758 Inventories 23,022,757 23,766,326 Prepaid expenses and other assets 564,069 595,469 Total current assets 31,840,270 35,037,916 Property and equipment, net 7,134,113 7,139,616 Intangible assets, net 552,683 566,197 Other assets, net 966,819 1,135,172 Total assets $ 40,493,885 $ 43,878,901 Liabilities and Shareholders ' Equity Current liabilities: Current installments of long-term debt $ 53,663 $ 52,624 Accounts payable and accrued expenses 5,129,639 5,843,044 Accrued compensation and payroll taxes 1,516,402 1,849,780 Income taxes payable 29,721 22,754 Total current liabilities 6,729,425 7,768,202 Note payable, revolver - noncurrent 7,459,960 8,324,397 Long-term debt, excluding current installments 2,613,949 2,622,620 Other noncurrent liabilities 342,491 441,838 Total liabilities 17,145,825 19,157,057 Shareholders' equity: Preferred stock, no par value, authorized 1,000,000 shares; none issued and outstanding — — Common stock, no par value, authorized 50,000,000 shares; issued and outstanding 7,853,357 shares at January 31, 2024 and 7,893,681 shares at October 31, 2023 15,185,623 15,134,133 Retained earnings 8,162,437 9,587,711 Total shareholders' equity 23,348,060 24,721,844 Commitments and contingencies Total liabilities and shareholders' equity $ 40,493,885 $ 43,878,901 See accompanying condensed notes to condensed consolidated financial statements. 2 Table of Contents OPTICAL CABLE CORPORATION Con

View Full Filing

View this 10-Q filing on SEC EDGAR