Optical Cable (US:OCC)2025-12-18 16:31Financial Performance and Structure - Optical Cable Corporation's annual report for the year ended October 31, 2025, includes consolidated financial statements and notes[101]. - The company has amended its stockholder protection rights agreement as of November 2, 2021, to enhance shareholder rights[4.13]. - A modification agreement was executed on July 5, 2022, between Optical Cable Corporation and North Mill Capital LLC, indicating ongoing financial arrangements[4.14]. - The company has entered into an omnibus amendment of loan documents with Northeast Bank on October 31, 2023, reflecting updated financing terms[4.15]. - The 2017 Stock Incentive Plan has undergone multiple amendments, with the latest effective March 25, 2025, to align with corporate governance practices[10.3]. - The company has a compensation recovery policy effective November 30, 2023, aimed at ensuring accountability in executive compensation[97]. - The annual report includes a list of subsidiaries, providing transparency on corporate structure[21.1]. - Certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act have been filed, ensuring compliance with regulatory requirements[31.1][31.2]. Product Offerings and Innovations - OCC has been granted 12 patents for innovative designs of fiber optic and copper connectivity and fiber optic cable over the past five years[22]. - OCC's product offerings include fiber optic and copper cabling, hybrid cabling, and various connectivity solutions for enterprise, data center, and harsh environment applications[21]. - The company is recognized for its pioneering work in fiber optic cables for military applications and has developed a broad product offering based on these technologies[15]. - OCC's fiber optic cables are designed for a wide range of applications, including military, industrial, and renewable energy sectors[27]. - OCC's harsh environment and specialty connectivity products are designed to meet U.S. Department of Defense standards and other industry certifications[36]. - The company has developed various solutions for real-time threat prevention and detection against cyberattacks[56]. Strategic Collaborations and Market Position - The company has entered into a strategic collaboration with Lightera to expand product offerings, particularly in the data center and enterprise sectors[19]. - On July 7, 2025, the Company entered into a strategic collaboration agreement with Lightera to expand product offerings, particularly for data center and enterprise sectors[84]. - The company competes with major manufacturers like Corning and CommScope in the fiber optic and copper data communications markets[40]. Workforce and Operations - The company employed a total of 348 persons as of October 31, 2025, all located in the United States[46]. - The company has experienced difficulty in hiring skilled labor for certain positions, particularly in manufacturing, due to macroeconomic labor trends[48]. - The company operated at approximately 50% of its production equipment capacity on average during fiscal year 2025[64]. - The company owns its facility in Roanoke, Virginia, which is approximately 146,000 square feet and situated on 23 acres of land[59]. - The company typically expects net sales to be 48% in the first half and 52% in the second half of each fiscal year, with approximately 46% of total net sales occurring in the first half of fiscal years 2025 and 2024[49]. - The company has made efforts to recruit, train, and retain qualified talent to meet its personnel needs[47]. Shareholder Information - OCC issued 642,199 redeemable restricted shares to Lightera for an aggregate purchase price of $2.0 million, representing 7.24% of OCC's outstanding common shares as of October 31, 2025[20]. - The company had 8,870,070 shares of common stock issued and outstanding at October 31, 2025, with employees and board members owning at least 33.5% of the shares[70]. Internal Controls and Compliance - As of October 31, 2025, the Company's disclosure controls and procedures were concluded to be effective by the CEO and CFO[80]. - The Company conducted an evaluation of its internal control over financial reporting as of October 31, 2025, and found it to be effective[82]. - There were no changes in the Company's internal controls over financial reporting during the fourth quarter that materially affected its effectiveness[83].