Optical Cable (OCC) - 2024 Q1 - Quarterly Report

Financial Facilities and Borrowings - The maximum aggregate principal amount subject to the Revolver is $18.0 million, with interest accruing at a rate of 1.5$7.5 million of outstanding borrowings on its Revolver and $2.3 million in available credit [134] Capital Expenditures and Funding - The company estimates capital expenditures of$1.0 million for the 2024 fiscal year, to be funded from working capital, cash from operations, or Revolver borrowings [135] - The company believes its future cash flow from operations, cash on hand, and existing credit facilities will be adequate to fund operations for at least the next twelve months [137] Sales Patterns - Net sales are typically 48% in the first half and 52% in the second half of each fiscal year, reflecting customer buying patterns and budgetary cycles [139] Regulatory and Accounting Updates - The company is evaluating the impact of FASB's ASU 2023-07 on segment reporting disclosures, effective for annual periods beginning after December 15, 2023 [143] - The company is also evaluating the impact of FASB's ASU 2023-09 on income tax disclosures, effective for annual periods beginning after December 15, 2024 [144] Internal Controls and Procedures - The company's disclosure controls and procedures were effective as of January 31, 2024, with no material changes in internal control over financial reporting during the last fiscal quarter [148]