OPTICAL CABLE CORP
For the period ended Jul 31, 2025. Filed Sep 11, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2025 · Filed Sep 11, 2025
OCC$9.41+5.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-30; filed 2025-06-05.
0001437749-25-019494
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-07-31; filed 2025-09-11.
0001437749-25-028857
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 125 previous paragraphs and 128 current paragraphs.
74 unchanged; 44 reworded; 8 added; 4 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Strategic Collaboration and Investment
Current report
On July 7, 2025, Optical Cable Corporation and Lightera, LLC (“Lightera”) announced that the companies had entered into a strategic collaboration agreement to expand product offerings and solutions—especially for the data center and enterprise sectors. As part of this strategic collaboration, OCC and Lightera have combined portions of the product portfolios of both companies to deliver additional integrated cabling and connectivity solution offerings, which will include certain Lightera products being offered and sold by OCC.
Current report
In connection with this strategic collaboration, OCC and Lightera entered into a Stock Purchase Agreement (the “Agreement”), under which OCC issued 642,199 redeemable restricted shares of its common stock to Lightera for an aggregate purchase price of $2.0 million, with Lightera holding 7.24% of OCC’s outstanding common shares as of July 7, 2025.
Current report
Income (loss) from operations
Current report
Income (loss) Before Income Taxes
Current report
Total assets decreased $190,000, or less than one percent, to $40.2 million at July 31, 2025, from $40.4 million at October 31, 2024 with no significant changes when comparing the two periods.
Current report
The Company issued 642,199 shares of redeemable restricted common stock for $2.0 million, reflected as temporary equity, during the first nine months of fiscal year 2025 as a result of a Stock Purchase Agreement with Lightera, LLC, dated July 7, 2025. As of July 31, 2025, the aggregate redemption value of the redeemable restricted common stock increased to $3.2 million. Also see note 12 to the condensed consolidated financial statements.
Current report
In July 2025, the FASB issued Accounting Standards Update 2025-05,Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606,Revenue from Contracts with Customers (“ASC 606”) by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025 and interim periods within those annual reporting periods, with early adoption permitted. The adoption of ASU 2025-05 is not expected to have a material impact on our results of operations, financial position or liquidity or our related financial statement disclosures.
Removed paragraphs (4)
Previous report
OCC’s wholly owned subsidiary Centric Solutions LLC (“Centric Solutions”) provides cabling and connectivity solutions for the data center market. Centric Solutions’ business is located at OCC’s facility near Dallas, Texas.
Previous report
Loss from operations
Previous report
Loss Before Income Taxes
Previous report
Total assets decreased $1.3 million, or 3.2%, to $39.1 million at April 30, 2025, from $40.4 million at October 31, 2024. This decrease was primarily due to a $1.8 million decrease in trade accounts receivable, net, largely the result of the decrease in net sales in the second quarter of fiscal year 2025 when compared to the fourth quarter of fiscal year 2024.
Reworded paragraphs (44)
Previous wording
This Form 10-Q may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations. Such known and unknown variables, uncertainties, contingencies and risks (collectively, “factors”) may also adversely affect Optical Cable Corporation and its subsidiaries (collectively, the “Company” or “OCC®”), the Company’s future results of operations and future financial condition, and/or the future equity value of the Company. Factors that could cause or contribute to such differences from our expectations or that could adversely affect the Company include, but are not limited to: the level of sales to key customers, including distributors; timing of certain projects and purchases by key customers; the economic conditions affecting network service providers; corporate and/or government spending on information technology; actions by competitors; fluctuations in the price and/or availability of raw materials (including optical fiber, copper, gold and other precious metals, plastics and other materials); fluctuations in transportation costs; our dependence on customized equipment for the manufacture of certain of our products in certain production facilities; our ability to protect our proprietary manufacturing technology; market conditions influencing prices or pricing in one or more of the markets in which we participate, including the impact of increased competition; our dependence on a limited number of suppliers for certain product components; the loss of or conflict with one or more key suppliers or customers; an adverse outcome in any litigation, claims, and other actions or disputes, and potential litigation, claims, and other actions or disputes against us or with us; an adverse outcome in any regulatory reviews and audits and potential regulatory reviews and audits; adverse changes in state tax laws and/or positions taken by state taxing authorities affecting us; technological changes and introductions of new competing products; changes in end-user preferences for competing technologies relative to our product offering; economic conditions that affect the telecommunications sector, the data communications sector, certain technology sectors and/or certain industry market sectors (for example, commercial/enterprise, military, industrial, broadcast, mining, petrochemical, renewable energy and wireless carrier industry market sectors); economic conditions that affect U.S.-based manufacturers; economic conditi…
Excerpt shortened here; the source contains the full paragraph.
Current wording
This Form 10-Q may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations. Such known and unknown variables, uncertainties, contingencies and risks (collectively, “factors”) may also adversely affect Optical Cable Corporation and its subsidiaries (collectively, the “Company” or “OCC®”), the Company’s future results of operations and future financial condition, and/or the future equity value of the Company. Factors that could cause or contribute to such differences from our expectations or that could adversely affect the Company include, but are not limited to: the level of sales to key customers, including distributors; timing of certain projects and purchases by key customers; the economic conditions affecting network service providers; corporate and/or government spending on information technology; actions by competitors; fluctuations in the price and/or availability of raw materials (including optical fiber, copper, gold and other precious metals, plastics and other materials); fluctuations in transportation costs; our dependence on customized equipment for the manufacture of certain of our products in certain production facilities; our ability to protect our proprietary manufacturing technology; market conditions influencing prices or pricing in one or more of the markets in which we participate, including the impact of increased competition; our dependence on a limited number of suppliers for certain product components; the loss of or conflict with one or more key suppliers or customers; an adverse outcome in any litigation, claims, and other actions or disputes, and potential litigation, claims, and other actions or disputes against us or with us; an adverse outcome in any regulatory reviews and audits and potential regulatory reviews and audits; adverse changes in state tax laws and/or positions taken by state taxing authorities affecting us; technological changes and introductions of new competing products; changes in end-user preferences for competing technologies relative to our product offering; economic conditions that affect the telecommunications sector, the data communications sector, certain technology sectors and/or certain industry market sectors (for example, commercial/enterprise, military, industrial, broadcast, mining, petrochemical, renewable energy and wireless carrier industry market sectors); economic conditions that affect U.S.-based manufacturers; economic conditi…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Optical Cable Corporation (or OCC®) is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise market and various harsh environment and specialty markets (collectively, the non-carrier markets), and also the wireless carrier market, offering integrated suites of high quality products which operate as a system solution or seamlessly integrate with other components. Our product offerings include designs for uses ranging from enterprise network, data center, residential, campus and Passive Optical LAN (“POL”) installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical, renewable energy and broadcast applications, as well as the wireless carrier market. Our products include fiber optic and copper cabling, hybrid cabling (which includes fiber optic and copper elements in a single cable), fiber optic and copper connectors, specialty fiber optic, copper and hybrid connectors, fiber optic and copper patch cords, pre-terminated fiber optic and copper cable assemblies, racks, cabinets, datacom enclosures, patch panels, face plates, multimedia boxes, fiber optic reels and accessories and other cable and connectivity management accessories, and are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics.
Current wording
Optical Cable Corporation (or OCC®) is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise market and various harsh environment and specialty markets (collectively, the non-carrier markets), and also the wireless carrier market, offering integrated suites of high quality products which operate as a system solution or seamlessly integrate with other components. Our product offerings include designs for uses ranging from enterprise network, data center, residential, campus and Passive Optical LAN (“POL”) installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical, renewable energy and broadcast applications. Our products include fiber optic and copper cabling, hybrid cabling (which includes fiber optic and copper elements in a single cable), fiber optic and copper connectors, specialty fiber optic, copper and hybrid connectors, fiber optic and copper patch cords, pre-terminated fiber optic and copper cable assemblies, racks, cabinets, datacom enclosures, patch panels, face plates, multimedia boxes, fiber optic reels and accessories and other cable and connectivity management accessories, and are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics.
Previous wording
Summary of Company Performance for Second Quarter of Fiscal Year 2025
Current wording
Summary of Company Performance for Third Quarter of Fiscal Year 2025
Previous wording
Consolidated net sales for the second quarter of fiscal year 2025 increased 8.9% to $17.5 million, compared to net sales of $16.1 million for the same period last year, and increased 11.5% compared to net sales of $15.7 million during the first quarter of fiscal year 2025. We experienced an increase in net sales in our specialty markets during the second quarter of fiscal year 2025, compared to the same period last year, while our enterprise markets were relatively stable. We continue to see general market improvements in our industry and strength in our military markets.
Current wording
Consolidated net sales for the third quarter of fiscal year 2025 increased 22.8% to $19.9 million, compared to net sales of $16.2 million for the same period last year, and increased 13.5% compared to net sales of $17.5 million during the second quarter of fiscal year 2025. We experienced an increase in net sales in both our enterprise and specialty markets during the third quarter of fiscal year 2025, compared to the same period last year. We continue to see general market improvements in our industry and strength in our military and severe duty markets.
Previous wording
Net sales to customers outside of the United States increased 27.1% and net sales to customers in the United States increased 4.6% in the second quarter of fiscal year 2025, compared to the same period last year. We can experience fluctuations in sales from quarter to quarter in the various markets (both industries and geographies) in which we operate for various reasons.
Current wording
Net sales to customers in the United States increased 22.0% and net sales to customers outside of the United States increased 26.2% in the third quarter of fiscal year 2025, compared to the same period last year. We can experience fluctuations in sales from quarter to quarter in the various markets (both industries and geographies) in which we operate for various reasons.
Previous wording
At the end of the second quarter of fiscal year 2025, our sales order backlog/forward load increased to $7.2 million when compared to $6.6 million as of January 31, 2025, and $5.7 million as of October 31, 2024.
Current wording
At the end of the third quarter of fiscal year 2025, our sales order backlog/forward load was $7.1 million compared to $7.2 million as of April 30, 2025, $6.6 million as of January 31, 2025, and $5.7 million as of October 31, 2024.
Previous wording
We typically expect net sales to be relatively lower in the first half of each fiscal year and relatively higher in the second half of each fiscal year, and excluding other volatility, we would normally expect 48% of total net sales to occur during the first half of a fiscal year and 52% of total net sales to occur during the second half of a fiscal year. We believe this historical seasonality pattern is generally indicative of an overall trend and reflective of the buying patterns and budgetary cycles of our customers. However, this pattern may be altered during any quarter or year by the quarterly and annual variability of net sales due to other factors, such as: wireless carrier market order volume, the timing of larger projects, the timing of orders from larger customers, other economic factors impacting our industry or impacting the industries of our customers and end-users, and various macroeconomic conditions. While we believe seasonality may be a factor that impacts our quarterly net sales results, particularly when excluding the volatility of sales in the wireless carrier market, we are not able to reliably predict net sales based on seasonality because net sales variability, due to such other factors, can also, and often does, substantially impact our net sales patterns during the year. During our last two fiscal years, approximately 46% and 53% of our total net sales occurred during the first half of fiscal years 2024 and 2023, respectively, and approximately 54% and 47% of our total net sales occurred during the second half of fiscal years 2024 and 2023, respectively.
Current wording
We typically expect net sales to be relatively lower in the first half of each fiscal year and relatively higher in the second half of each fiscal year, and excluding other volatility, we would normally expect 48% of total net sales to occur during the first half of a fiscal year and 52% of total net sales to occur during the second half of a fiscal year. We believe this historical seasonality pattern is generally indicative of an overall trend and reflective of the buying patterns and budgetary cycles of our customers. However, this pattern may be altered during any quarter or year by the quarterly and annual variability of net sales due to other factors, such as: wireless carrier market order volume, the timing of larger projects, the timing of orders from larger customers, other economic factors impacting our industry or impacting the industries of our customers and end-users, and various macroeconomic conditions. While we believe seasonality may be a factor that impacts our quarterly net sales results, we are not able to reliably predict net sales based on seasonality because net sales variability, due to such other factors, can also, and often does, substantially impact our net sales patterns during the year. During our last two fiscal years, approximately 46% and 53% of our total net sales occurred during the first half of fiscal years 2024 and 2023, respectively, and approximately 54% and 47% of our total net sales occurred during the second half of fiscal years 2024 and 2023, respectively.
Previous wording
Our gross profit increased 32.1%, or $1.3 million, to $5.3 million in the second quarter of fiscal year 2025, compared to gross profit of $4.0 million in the second quarter of fiscal year 2024, and increased 15.3% compared to $4.6 million for the first quarter of fiscal year 2025.
Current wording
Our gross profit increased 61.2%, or $2.4 million, to $6.3 million in the third quarter of fiscal year 2025, compared to gross profit of $3.9 million in the third quarter of fiscal year 2024, and increased 18.5% compared to $5.3 million for the second quarter of fiscal year 2025.
Previous wording
Gross profit margin, or gross profit as a percentage of net sales, increased to 30.4% in the second quarter of fiscal year 2025, compared to 25.1% in the second quarter of fiscal year 2024, and compared to 29.4% for the first quarter of fiscal year 2025, as we benefited from our operating leverage.
Current wording
Gross profit margin, or gross profit as a percentage of net sales, increased to 31.7% in the third quarter of fiscal year 2025, compared to 24.2% in the third quarter of fiscal year 2024, and compared to 30.4% for the second quarter of fiscal year 2025, as we benefited from our operating leverage.
Previous wording
Gross profit margin for the second quarter of fiscal 2025, when compared to the same period last year, was positively impacted by higher volumes, as fixed charges were spread over higher sales—the impact of operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.
Current wording
Gross profit margin for the third quarter of fiscal 2025, when compared to the same period last year, was positively impacted by higher volumes, as fixed charges were spread over higher sales—the impact of operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.
Previous wording
SG&A expenses increased to $5.7 million, or 8.0%, during the second quarter of fiscal year 2025, when compared to $5.3 million during the second quarter of fiscal year 2024. SG&A expenses as a percentage of net sales were 32.7% in the second quarter of fiscal year 2025, compared to 33.0% in the second quarter of fiscal year 2024. By comparison, SG&A expenses as a percentage of net sales were 34.7% during the first quarter of fiscal year 2025.
Current wording
SG&A expenses increased to $5.7 million, or 9.5%, during the third quarter of fiscal year 2025, when compared to $5.2 million during the third quarter of fiscal year 2024. SG&A expenses as a percentage of net sales were 28.8% in the third quarter of fiscal year 2025, compared to 32.3% in the third quarter of fiscal year 2024. By comparison, SG&A expenses as a percentage of net sales were 32.7% during the second quarter of fiscal year 2025.
Previous wording
The increase in SG&A expenses during the second quarter of fiscal year 2025, compared to the same period last year, was primarily the result of increases in employee and contracted sales personnel-related costs totaling $162,000 and shipping costs totaling $151,000. Included in employee and contracted sales personnel-related costs are compensation costs and sales incentives. Compensation costs increased due to new hires, net of terminations. Sales incentives and shipping costs increased primarily due to increases in net sales.
Current wording
The increase in SG&A expenses during the third quarter of fiscal year 2025, compared to the same period last year, was primarily the result of increases in employee and contracted sales personnel-related costs totaling $304,000 and shipping costs totaling $130,000. Both employee and contracted sales personnel-related costs, which include sales incentives, and shipping costs increased due to increases in net sales.
Previous wording
We recognized royalty expense, net of royalty income, totaling $7,000 during the second quarter of fiscal years 2025 and 2024. Royalty expense and/or income may fluctuate based on sales of related licensed products and estimates of amounts for non-licensed product sales, if any.
Current wording
We recognized royalty expense, net of royalty income, totaling $7,000 during the third quarter of fiscal years 2025 and 2024. Royalty expense and/or income may fluctuate based on sales of related licensed products and estimates of amounts for non-licensed product sales, if any.
Previous wording
We recognized $14,000 of amortization expense, associated with intangible assets, during the second quarter of fiscal years 2025 and 2024.
Current wording
We recognized $14,000 of amortization expense, associated with intangible assets, during the third quarter of fiscal years 2025 and 2024.
Previous wording
We reported a loss from operations of $429,000 for the second quarter of fiscal year 2025, compared to $1.3 million for the second quarter of fiscal year 2024. The improvement was primarily due to the increase in gross profit of $1.3 million, partially offset by the increase in SG&A expenses of $424,000.
Current wording
We reported income from operations of $562,000 for the third quarter of fiscal year 2025, compared to a loss from operations of $1.3 million for the third quarter of fiscal year 2024. The improvement was primarily due to the increase in gross profit of $2.4 million, partially offset by the increase in SG&A expenses of $499,000.
Previous wording
We reported a loss before income taxes of $683,000 for the second quarter of fiscal year 2025, compared to $1.6 million for the second quarter of fiscal year 2024. The improvement was primarily a result of the decrease in loss from operations of $872,000.
Current wording
We reported income before income taxes of $306,000 for the third quarter of fiscal year 2025, compared to a loss before income taxes of $1.6 million for the third quarter of fiscal year 2024. The improvement was primarily a result of the decrease in loss from operations of $1.9 million.
Previous wording
Income tax expense totaled $15,000 in the second quarter of fiscal year 2025, compared to $7,000 in the second quarter of fiscal year 2024. Our effective tax rate was negative 2.2% for the second quarter of fiscal year 2025 and less than negative one percent for the second quarter of fiscal year 2024.
Current wording
Income tax expense totaled $4,000 in the third quarter of fiscal year 2025, compared to $7,000 in the third quarter of fiscal year 2024. Our effective tax rate was 1.5% for the third quarter of fiscal year 2025 and less than negative one percent for the third quarter of fiscal year 2024.
Previous wording
Net loss for the second quarter of fiscal year 2025 was $698,000, or $0.09 per share, compared to $1.6 million, or $0.21 per share, for the second quarter of fiscal year 2024. This improvement was primarily due to the decrease in loss before income taxes of $911,000.
Current wording
Net income for the third quarter of fiscal year 2025 was $302,000, or $0.04 per share, compared to a net loss of $1.6 million, or $0.20 per share, for the third quarter of fiscal year 2024. This improvement was primarily due to the decrease in loss before income taxes of $1.9 million.
Previous wording
Consolidated net sales for the first half of fiscal year 2025 were $33.3 million, an increase of 7.5% compared to net sales of $31.0 million for the same period last year. We experienced an increase in net sales in both our enterprise and specialty markets in the first half of fiscal year 2025, compared to the same period last year.
Current wording
Consolidated net sales for the first nine months of fiscal year 2025 were $53.2 million, an increase of 12.8% compared to net sales of $47.2 million for the same period last year. We experienced an increase in net sales in both our enterprise and specialty markets in the first nine months of fiscal year 2025, compared to the same period last year.
Previous wording
Net sales to customers outside of the United States increased 24.3% and net sales to customers in the United States increased 3.5% in the first half of fiscal year 2025, compared to the same period last year. We can experience fluctuations in sales from quarter to quarter in the various markets (both industries and geographies) in which we operate for various reasons.
Current wording
Net sales to customers in the United States increased 9.8% and net sales to customers outside of the United States increased 24.9% in the first nine months of fiscal year 2025, compared to the same period last year. We can experience fluctuations in sales from quarter to quarter in the various markets (both industries and geographies) in which we operate for various reasons.
Previous wording
At the end of the first half of fiscal year 2025, our sales order backlog/forward load increased to $7.2 million when compared to $6.6 million as of January 31, 2025, and $5.7 million as of October 31, 2024.
Current wording
At the end of the first nine months of fiscal year 2025, our sales order backlog/forward load was $7.1 million compared to $7.2 million as of April 30, 2025, $6.6 million as of January 31, 2025, and $5.7 million as of October 31, 2024.
Previous wording
Net sales for the first half of fiscal year 2025 were positively impacted by general market improvements in our industry overall, as well as in our military markets specifically.
Current wording
Net sales for the first nine months of fiscal year 2025 were positively impacted by general market improvements in our industry overall, as well as in our military and severe duty markets specifically.
Previous wording
Our gross profit was $10.0 million in the first half of fiscal year 2025, an increase of 28.5% compared to gross profit of $7.8 million in the first half of fiscal year 2024. Gross profit margin was 29.9% in the first half of fiscal year 2025 compared to 25.0% in the first half of fiscal year 2024.
Current wording
Our gross profit was $16.3 million in the first nine months of fiscal year 2025, an increase of 39.5% compared to gross profit of $11.7 million in the first nine months of fiscal year 2024. Gross profit margin increased to 30.6% in the first nine months of fiscal year 2025 compared to 24.7% in the first nine months of fiscal year 2024.
Previous wording
Gross profit margin for the first half of fiscal 2025, when compared to the same period last year, was positively impacted by higher volumes, as fixed charges were spread over higher sales—the impact of operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.
Current wording
Gross profit margin for the first nine months of fiscal 2025, when compared to the same period last year, was positively impacted by higher volumes, as fixed charges were spread over higher sales—the impact of operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.
Previous wording
SG&A expenses increased 7.6% to $11.2 million during the first half of fiscal year 2025, compared to $10.4 million for the same period last year. SG&A expenses as a percentage of net sales were 33.6% in the first half of fiscal years 2025 and 2024.
Current wording
SG&A expenses increased 8.2% to $16.9 million during the first nine months of fiscal year 2025, compared to $15.7 million for the same period last year. SG&A expenses as a percentage of net sales were 31.8% in the first nine months of fiscal year 2025, compared to 33.2% in the first nine months of fiscal year 2024.
Previous wording
The increase in SG&A expenses during the first half of fiscal year 2025 compared to the same period last year was primarily the result of increases in employee and contracted sales personnel-related costs totaling $339,000 and shipping costs totaling $168,000. Included in employee and contracted sales personnel-related costs are compensation costs and sales incentives. Compensation costs increased due to new hires, net of terminations, and certain rate increases. Sales incentives and shipping costs increased primarily due to increases in net sales.
Current wording
The increase in SG&A expenses during the first nine months of fiscal year 2025 compared to the same period last year was primarily the result of increases in employee and contracted sales personnel-related costs totaling $643,000 and shipping costs totaling $298,000. Included in employee and contracted sales personnel-related costs are compensation costs and sales incentives. Compensation costs increased due to new hires, net of terminations, and certain rate increases. Sales incentives and shipping costs increased primarily due to increases in net sales.
Previous wording
We recognized royalty expense, net of royalty income, totaling $13,000 during the first half of fiscal years 2025 and 2024. Royalty income and/or expense may fluctuate based on sales of related licensed products and estimates of amounts for non-licensed product sales, if any.
Current wording
We recognized royalty expense, net of royalty income, totaling $20,000 during the first nine months of fiscal years 2025 and 2024. Royalty income and/or expense may fluctuate based on sales of related licensed products and estimates of amounts for non-licensed product sales, if any.
Previous wording
We recognized $27,000 of amortization expense, associated with intangible assets, during the first half of fiscal years 2025 and 2024.
Current wording
We recognized $41,000 of amortization expense, associated with intangible assets, during the first nine months of fiscal years 2025 and 2024.
Previous wording
We reported a loss from operations of $1.3 million for the first half of fiscal year 2025, compared to $2.7 million for the first half of fiscal year 2024. The improvement was primarily due to the increase in gross profit of $2.2 million, partially offset by the increase in SG&A expenses of $790,000.
Current wording
We reported a loss from operations of $719,000 for the first nine months of fiscal year 2025, compared to $4.0 million for the first nine months of fiscal year 2024. The improvement was primarily due to the increase in gross profit of $4.6 million, partially offset by the increase in SG&A expenses of $1.3 million.
Previous wording
We recognized other expense, net in the first half of fiscal year 2025 of $497,000, compared to $311,000 in the first half of fiscal year 2024. Other expense, net for the first half of fiscal year 2025 is comprised of interest expense and other miscellaneous items. Other expense, net for the first half of fiscal year 2024 is comprised of interest expense and other miscellaneous items, partially offset by gain on insurance proceeds totaling $219,000.
Current wording
We recognized other expense, net in the first nine months of fiscal year 2025 of $753,000, compared to $524,000 in the first nine months of fiscal year 2024. Other expense, net for the first nine months of fiscal year 2025 is comprised of interest expense and other miscellaneous items. Other expense, net for the first nine months of fiscal year 2024 is comprised of interest expense and other miscellaneous items, partially offset by gain on insurance proceeds totaling $309,000.
Previous wording
We reported a loss before income taxes of $1.8 million for the first half of fiscal year 2025, compared to $3.0 million for the first half of fiscal year 2024. The improvement was primarily a result of the decrease in loss from operations of $1.4 million, partially offset by the decrease in gain on insurance proceeds, net of $219,000.
Current wording
We reported a loss before income taxes of $1.5 million for the first nine months of fiscal year 2025, compared to $4.6 million for the first nine months of fiscal year 2024. The improvement was primarily a result of the decrease in loss from operations of $3.3 million, partially offset by the decrease in gain on insurance proceeds, net of $309,000.
Previous wording
Income tax expense totaled $27,000 in the first half of fiscal year 2025, compared to $14,000 in the first half of fiscal year 2024. Our effective tax rate was negative 1.5% for the first half of fiscal year 2025 and less than negative one percent for the first half of fiscal year 2024.
Current wording
Income tax expense totaled $31,000 in the first nine months of fiscal year 2025, compared to $21,000 in the first nine months of fiscal year 2024. Our effective tax rate was negative 2.1% for the first nine months of fiscal year 2025 and less than negative one percent for the first nine months of fiscal year 2024.
Previous wording
Net loss for the first half of fiscal year 2025 was $1.8 million, or $0.23 per share, compared to $3.0 million, or $0.39 per share, for the first half of fiscal year 2024. This improvement was primarily due to the decrease in loss before income taxes of $1.2 million.
Current wording
Net loss for the first nine months of fiscal year 2025 was $1.5 million, or $0.19 per share, compared to $4.6 million, or $0.59 per share, for the first nine months of fiscal year 2024. This improvement was primarily due to the decrease in loss before income taxes of $3.1 million.
Previous wording
Total liabilities increased $442,000, or 2.3%, to $20.0 million at April 30, 2025, from $19.5 million at October 31, 2024. The increase in total liabilities was primarily due to increases in accounts payable and accrued expenses totaling $2.1 million, resulting from the timing of certain vendor payments, partially offset by a decrease in note payable, revolver - current totaling $1.8 million, resulting from net repayments on our Revolver.
Current wording
Total liabilities decreased $780,000, or 4.0%, to $18.7 million at July 31, 2025, from $19.5 million at October 31, 2024. The decrease in total liabilities was primarily due to a decrease in note payable, revolver - current totaling $1.9 million, resulting from net repayments on our Revolver, partially offset by increases in accounts payable and accrued expenses totaling $915,000, resulting from the timing of certain vendor payments.
Previous wording
Total shareholders’ equity at April 30, 2025 decreased $1.7 million in the first half of fiscal year 2025 resulting primarily from a net loss of $1.8 million, partially offset by share-based compensation, net of $79,000.
Current wording
Total shareholders’ equity at July 31, 2025 decreased $2.6 million in the first nine months of fiscal year 2025 resulting primarily from a net loss of $1.5 million, issuance costs totaling $92,000 related to the issuance of redeemable restricted common stock and the $1.2 million increase to the aggregate redemption value of the redeemable restricted common stock as of July 31, 2025, partially offset by share-based compensation, net of $186,000.
Previous wording
Our cash totaled $894,000 as of April 30, 2025, an increase of $650,000 compared to $244,000 as of October 31, 2024. The increase in cash for the six months ended April 30, 2025 primarily resulted from net cash provided by operating activities of $2.8 million, partially offset by net cash used in financing activities of $2.0 million, resulting primarily from net repayments on our Revolver, and capital expenditures of $140,000.
Current wording
Our cash totaled $421,000 as of July 31, 2025, an increase of $177,000 compared to $244,000 as of October 31, 2024. The increase in cash for the nine months ended July 31, 2025 primarily resulted from net cash provided by operating activities of $617,000, partially offset by capital expenditures of $217,000 and net cash used in financing activities of $206,000.
Previous wording
On April 30, 2025, we had working capital of $13.9 million compared to $15.5 million on October 31, 2024. The ratio of current assets to current liabilities as of April 30, 2025 was 1.9 to 1.0, compared to 2.0 to 1.0 as of October 31, 2024. The decrease in working capital and in the current ratio was primarily due to the decrease in trade accounts receivable, net of $1.8 million and the increase in accounts payable and accrued expenses totaling $2.1 million, partially offset by the decrease in note payable, revolver – current totaling $1.8 million.
Current wording
On July 31, 2025, we had working capital of $13.7 million compared to $15.5 million on October 31, 2024. The ratio of current assets to current liabilities as of July 31, 2025 was 1.8 to 1.0, compared to 2.0 to 1.0 as of October 31, 2024. The decrease in working capital and in the current ratio was primarily due to the $2.5 million reclassification of the balance on our real estate term loan from noncurrent liabilities to current liabilities, due to its May 5, 2026 maturity date, and the increase in accounts payable and accrued expenses totaling $915,000, partially offset by the decrease in note payable, revolver – current totaling $1.9 million, resulting from net repayments on our Revolver.
Previous wording
Net cash provided by operating activities was $2.8 million in the first half of fiscal year 2025, compared to $113,000 for the first half of fiscal year 2024. Net cash provided by operating activities during the first half of fiscal year 2025 primarily resulted from certain adjustments to reconcile a net loss of $1.8 million to net cash provided by operating activities including depreciation and amortization of $424,000 and share-based compensation expense of $186,000. Additionally, the cash flow impact of decreases in trade accounts receivable, net of $1.9 million and the cash flow impact of increases in accounts payable and accrued expenses of $2.1 million further contributed to net cash provided by operating activities. All of the aforementioned factors positively affecting cash provided by operating activities were partially offset by increases in inventories totaling $332,000.
Current wording
Net cash provided by operating activities was $617,000 in the first nine months of fiscal year 2025, compared to $665,000 for the first nine months of fiscal year 2024. Net cash provided by operating activities during the first nine months of fiscal year 2025 primarily resulted from certain adjustments to reconcile a net loss of $1.5 million to net cash provided by operating activities including depreciation and amortization of $608,000 and share-based compensation expense of $293,000. Additionally, the cash flow impact of increases in accounts payable and accrued expenses of $848,000 further contributed to net cash provided by operating activities.
Previous wording
Net cash provided by operating activities during the first half of fiscal year 2024 primarily resulted from certain adjustments to reconcile a net loss of $3.0 million to net cash provided by operating activities including depreciation and amortization of $431,000 and share-based compensation expense of $251,000. Additionally, the cash flow impact of decreases in accounts receivable, net of $447,000 and decreases in inventories of $2.3 million further contributed to net cash provided by operating activities. All of the aforementioned factors positively affecting cash provided by operating activities were partially offset by the cash flow impact of decreases in accounts payable and accrued expenses, including accrued compensation and payroll taxes, of $639,000 and an adjustment to reconcile a net loss of $3.0 million to net cash provided by operating activities for gain on insurance proceeds, net totaling $219,000.
Current wording
Net cash provided by operating activities during the first nine months of fiscal year 2024 primarily resulted from certain adjustments to reconcile a net loss of $4.6 million to net cash provided by operating activities including depreciation and amortization of $644,000 and share-based compensation expense of $329,000. Additionally, decreases in inventories of $4.5 million further contributed to net cash provided by operating activities. All of the aforementioned factors positively affecting cash provided by operating activities were partially offset by the cash flow impact of decreases in accounts payable and accrued expenses, including accrued compensation and payroll taxes, of $790,000, and by an adjustment to reconcile a net loss of $4.6 million to net cash provided by operating activities for gain on insurance proceeds, net totaling $309,000.
Previous wording
Net cash used in investing activities totaled $143,000 in the first half of fiscal year 2025, compared to $17,000 in the first half of fiscal year 2024. Net cash used in investing activities during the first half of fiscal years 2025 resulted primarily from purchases of property and equipment and deposits for the purchase of property and equipment. Net cash used in investing activities during the first half of fiscal year 2024 resulted primarily from purchases of property and equipment and deposits for the purchase of property and equipment totaling $236,000, partially offset by net insurance proceeds of $219,000.
Current wording
Net cash used in investing activities totaled $234,000 in the first nine months of fiscal year 2025, compared to $43,000 in the first nine months of fiscal year 2024. Net cash used in investing activities during the first nine months of fiscal year 2025 resulted primarily from purchases of property and equipment and deposits for the purchase of property and equipment totaling $217,000. Net cash used in investing activities during the first nine months of fiscal year 2024 resulted primarily from purchases of property and equipment and deposits for the purchase of property and equipment totaling $313,000, partially offset by net insurance proceeds of $271,000.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
We recognized other expense, net in the third quarter of fiscal year 2025 of $256,000, compared to $213,000 in the third quarter of fiscal year 2024. Other expense, net for the third quarter of fiscal year 2025 is comprised primarily of interest expense and other miscellaneous items. Other expense, net for the third quarter of fiscal year 2024 is comprised primarily of interest expense and other miscellaneous items, partially offset by gain on insurance proceeds received for damage to property and equipment, totaling $90,000.
Current report — wording carried from elsewhere
Nine Months Ended July 31, 2025 and 2024
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Item 2. Management**’s Discussion and Analysis of Financial Condition and Results of Operations
Previous report — wording carried elsewhere
We recognized other expense, net in the second quarter of fiscal year 2025 of $254,000, compared to $293,000 in the second quarter of fiscal year 2024. Other expense, net is comprised primarily of interest expense and other miscellaneous items.
Previous report — wording carried elsewhere
Six Months Ended April 30, 2025 and 2024