Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Jan. 31, 2017	Mar. 03, 2017
Document Information [Line Items]
Entity Registrant Name	OPTICAL CABLE CORP
Entity Central Index Key	0001000230
Trading Symbol	occ
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		7,363,851
Document Type	10-Q
Document Period End Date	Jan. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Current assets:
Cash	$ 1,245,681	$ 1,879,064
Trade accounts receivable, net of allowance for doubtful accounts of $68,969 at January 31, 2017 and $74,266 at October 31, 2016	8,534,088	8,916,245
Other receivables	49,391	70,828
Inventories	16,041,350	15,023,966
Prepaid expenses	446,335	431,780
Total current assets	26,316,845	26,321,883
Property and equipment, net	12,898,307	13,399,158
Intangible assets, net	566,904	575,010
Other assets, net	334,216	369,737
Total assets	40,116,272	40,665,788
Current liabilities:
Current installments of long-term debt	309,505	294,214
Accounts payable and accrued expenses	3,068,143	2,636,420
Accrued compensation and payroll taxes	1,185,745	1,179,872
Income taxes payable	13,503	15,603
Total current liabilities	4,576,896	4,126,109
Note payable to bank	4,600,000	5,000,000
Long-term debt, excluding current installments	6,564,731	6,651,780
Other noncurrent liabilities	103,376	122,910
Total liabilities	15,845,003	15,900,799
Shareholders’ equity:
Preferred stock, no par value, authorized 1,000,000 shares; none issued and outstanding	0	0
Common stock, no par value, authorized 50,000,000 shares; issued and outstanding 7,364,093 shares at January 31, 2017 and 7,081,159 shares at October 31, 2016	11,218,236	11,080,595
Retained earnings	13,053,033	13,684,394
Total shareholders’ equity	24,271,269	24,764,989
Commitments and contingencies
Total liabilities and shareholders’ equity	$ 40,116,272	$ 40,665,788

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Jan. 31, 2017	Oct. 31, 2016
Allowance for doubtful accounts	$ 68,969	$ 74,266
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	7,364,093	7,081,159
Common stock, shares outstanding (in shares)	7,364,093	7,081,159

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Net sales	$ 14,606,252	$ 14,047,890
Cost of goods sold	9,795,853	10,545,459
Gross profit	4,810,399	3,502,431
Selling, general and administrative expenses	5,192,648	5,087,481
Royalty expense, net	31,251	14,778
Amortization of intangible assets	5,829	3,282
Loss from operations	(419,329)	(1,603,110)
Other expense, net:
Interest expense	(147,813)	(157,814)
Other, net	(69,225)	17,603
Other expense, net	217,038	140,211
Loss before income taxes	(636,367)	(1,743,321)
Income tax expense (benefit)	(20,600)	23,872
Net loss	(615,767)	(1,767,193)
Net loss attributable to noncontrolling interest		(22,172)
Net loss attributable to OCC	$ (615,767)	$ (1,745,021)
Net loss attributable to OCC per share: Basic and diluted (in dollars per share)	$ (0.09)	$ (0.28)

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 3 months ended Jan. 31, 2017 - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Oct. 31, 2016	7,081,159
Balances at Oct. 31, 2016	$ 11,080,595	$ 13,684,394	$ 24,764,989
Share-based compensation, net (in shares)	(287,743)
Share-based compensation, net	$ 137,641		137,641
Repurchase and retirement of common stock (at cost) (in shares)	(4,809)
Repurchase and retirement of common stock (at cost)		(15,594)	(15,594)
Net loss		(615,767)	(615,767)
Balances (in shares) at Jan. 31, 2017	7,364,093
Balances at Jan. 31, 2017	$ 11,218,236	$ 13,053,033	$ 24,271,269

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Cash flows from operating activities:
Net loss	$ (615,767)	$ (1,767,193)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion	506,342	499,185
Bad debt expense (recovery)	(568)	7,075
Share-based compensation expense	148,920	219,073
Impact of excess tax benefits from share-based compensation		131
(Gain) loss on sale of property and equipment	78,482	(4,490)
(Increase) decrease in:
Trade accounts receivable	382,725	1,603,238
Other receivables	21,437	91,454
Inventories	(1,017,384)	212,748
Prepaid expenses	(14,555)	33,534
Increase (decrease) in:
Accounts payable and accrued expenses	465,111	(288,394)
Accrued compensation and payroll taxes	5,873	(171,980)
Income taxes payable	(2,100)	22,523
Other noncurrent liabilities	(27,428)	(440,687)
Net cash provided by (used in) operating activities	(68,912)	16,217
Cash flows from investing activities:
Purchase of and deposits for the purchase of property and equipment	(68,117)	(299,973)
Investment in intangible assets	2,277	(16,960)
Proceeds from sale of property and equipment		4,618
Net cash used in investing activities	(65,840)	(312,315)
Cash flows from financing activities:
Payroll taxes withheld and remitted on share-based payments	(11,279)	(16,283)
Principal payments on long-term debt and note payable to bank	(471,758)	(68,698)
Payments for financing costs		(21,856)
Repurchase of common stock	(15,594)
Impact of excess tax benefits from share-based compensation		(131)
Common stock dividends paid		(141,311)
Net cash used in financing activities	(498,631)	(248,279)
Net decrease in cash	(633,383)	(544,377)
Cash at beginning of period	1,879,064	1,083,072
Cash at end of period	$ 1,245,681	$ 538,695

Note 1 - General

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

(1)

General

The accompanying unaudited condensed consolidated financial statements of Optical Cable Corporation and its subsidiaries (collectively, the “Company” or “OCC

”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial reporting information and the instructions to Form

-Q and Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments considered necessary for a fair presentation have been included. Operating results for the

three

months ended

January

31,

2017

are not necessarily indicative of the results for the fiscal year ending

October

31,

2017

because the following items, among other things,

may

impact those results: changes in market conditions, seasonality, changes in technology, competitive conditions, ability of management to execute its business plans, as well as other variables, uncertainties, contingencies and risks set forth as risks in the Company’s Annual Report on Form

-K for the fiscal year ended

October

31,

2016

(including those set forth in the “Forward-Looking Information” section), or as otherwise set forth in other filings by the Company as variables, contingencies and/or risks possibly affecting future results. The unaudited condensed consolidated financial statements and condensed notes are presented as permitted by Form

-Q and do not contain certain information included in the Company’s annual consolidated financial statements and notes. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form

-K for the fiscal year ended

October

31,

2016.

April

2015,

the FASB issued Accounting Standards Update

2015

03,

Simplifying the Presentation of Debt Issuance Costs

("ASU

2015

03").

ASU

2015

requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as an asset. In

August

2015,

the FASB issued Accounting Standards Update

2015

15,

Interest - Imputed Interest (Subtopic

835

30):

Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements

(“ASU

2015

15”)

which clarified that entities

may

continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. This guidance is effective for fiscal years, and interim periods within those years, beginning after

December

15,

2015.

The new guidance must be applied retrospectively to all prior reporting periods presented. The Company adopted ASU

2015

effective

November

2016.

The adoption did not have a material impact on our results of operations, financial position or liquidity or our related financial statement disclosures.

November

2015,

the FASB issued Accounting Standards Update

2015

17,

Income Taxes

(“ASU

2015

17”).

ASU

2015

requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU

2015

is effective for financial statements issued for annual periods beginning after

December

15,

2016,

and interim periods within those periods, with early adoption permitted. The Company adopted ASU

2015

effective

November

2016.

The adoption did not have a material impact on our results of operations, financial position or liquidity or our related financial statement disclosures.

Note 2 - Stock Incentive Plans and Other Share-Based Compensation

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(2)	Stock Incentive Plans and Other Share-Based Compensation

As of

January

31,

2017,

there were approximately

37,000

remaining shares available for grant under the Optical Cable Corporation Second Amended and Restated

2011

Stock Incentive Plan.

Share-based compensation expense for employees, a consultant and non-employee Directors recognized in the condensed consolidated statements of operations for the

three

months ended

January

31,

2017

and

2016

was

$148,920

and

$219,073,

respectively. Share-based compensation expense is entirely related to expense recognized in connection with the vesting of restricted stock awards or other stock awards.

Restricted and Other Stock Awards

The Company has granted, and anticipates granting from time to time, restricted stock awards subject to approval by the Compensation Committee of the Board of Directors. Since fiscal year

2004,

the Company has exclusively used restricted stock awards for all share-based compensation of employees and consultants, and stock awards to non-employee members of the Board of Directors.

Stock awards to non-employee members of the Board of Directors vest immediately upon grant, but cannot be sold, transferred, pledged or otherwise encumbered or disposed of until

six

months after the date of grant.

During the

three

months ended

January

31,

2017,

restricted stock awards for employees under the Optical Cable Corporation Second Amended and Restated

2011

Stock Incentive Plan totaling

359,831

shares were approved by the Compensation Committee of the Board of Directors of the Company. All of the restricted shares granted are operational performance-based shares vesting over approximately

five

years beginning on

January

31,

2018

based on the achievement of certain quantitative operational performance goals. The Company uses gross profit growth as its performance-based measure for restricted stock awards granted to employees.

Restricted stock award activity during the

three

months ended

January

31,

2017

consisted of restricted stock grants totaling

359,831

shares, restricted shares forfeited totaling

68,636

and restricted shares withheld for taxes in connection with the vesting of restricted shares totaling

3,452.

Employees and non-employee Directors have the option to surrender shares to pay for withholding tax obligations resulting from any vesting restricted shares, or to pay cash to the Company in the amount of the withholding taxes owed on the value of any vesting restricted shares in order to avoid surrendering shares.

As of

January

31,

2017,

the estimated amount of compensation cost related to unvested equity-based compensation awards in the form of service-based and operational performance-based shares that the Company will recognize over a

3.5

year weighted-average period is approximately

$3.0

million.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Note 5 - Product Warranties

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

(5)	Product Warranties

As of

January

31,

2017

and

October

31,

2016,

the Company’s accrual for estimated product warranty claims totaled

$85,000

and

$70,000,

respectively, and is included in accounts payable and accrued expenses. Warranty claims expense for the

three

months ended

January

31,

2017

and

2016

totaled

$47,855

and

$12,730,

respectively.

The following table summarizes the changes in the Company’s accrual for product warranties during the

three

months ended

January

31,

2017

and

2016:

	Three Months Ended
	January 31,
	2017			2016
Balance at beginning of period	$	70,000		$	130,000
Liabilities accrued for warranties issued during the period		71,161			73,968
Warranty claims and costs paid during the period		(32,855	)		(52,730	)
Changes in liability for pre-existing warranties during the period		(23,306	)		(61,238	)
Balance at end of period	$	85,000		$	90,000

Note 6 - Long-term Debt and Note Payable to Bank

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Long-term Debt [Text Block]

(6)	Long-term Debt and Note Payable to Bank

The Company has credit facilities consisting of a real estate term loan, as amended and restated (the “Virginia Real Estate Loan”), a supplemental real estate term loan, as amended and restated (the “North Carolina Real Estate Loan”) and a revolving credit note.

December

21,

2016,

the Company entered into a Loan Modification Agreement (the “Agreement”) with Bank of North Carolina (“BNC”) to modify the Credit Agreement dated

April

26,

2016

entered into between the Company and BNC, the Revolving Credit Note dated

April

26,

2016

payable by the Company to BNC and the term loans dated

April

26,

2016

payable by the Company to BNC.

The Agreement with BNC lowered the interest rate of the Virginia Real Estate Loan and the North Carolina Real Estate Loan to

3.75%

effective

January

2017

and resulted in lower monthly installment payments. The real estate loans continue to be secured by a

first

priority lien on all of the Company’s personal property and assets, all money, goods, machinery, equipment, fixtures, inventory, accounts, chattel paper, letter of credit rights, deposit accounts, commercial tort claims, documents, instruments, investment property and general intangibles now owned or hereafter acquired by the Company and wherever located, as well as a

first

lien deed of trust on the Company’s real property.

Long-term debt as of

January

31,

2017

and

October

31,

2015

consists of the following:

	January 31,		October 31,
	2017		2016
Virginia Real Estate Loan ($6.5 million original principal) payable in monthly installments of $35,045, including interest (at 3.75%), with final payment of $4,855,818 due April 30, 2018	$	5,112,418	$	5,165,785
North Carolina Real Estate Loan ($2.24 million original principal) payable in monthly installments of $12,077, including interest (at 3.75%), with final payment of $1,673,389 due April 30, 2018		1,761,818		1,780,209
Total long-term debt		6,874,236		6,945,994
Less current installments		309,505		294,214
Long-term debt, excluding current installments	$	6,564,731	$	6,651,780

The Revolving Credit Note (“Revolver”) with BNC provides the Company with a

$7.0

million revolving line of credit (“Revolving Loan”) for the working capital needs of the Company. Under the Agreement and Revolver, BNC provides the Company with

one

or more revolving loans in a collective maximum principal amount of

$7.0

million. The Company

may

borrow, repay, and reborrow at any time or from time to time while the Revolving Loan is in effect.

The Agreement with BNC also resulted in the lowering of the applicable margin in the Revolving Credit Note and established a floor on the interest rate for the Revolving Credit Note such that the LIBOR Adjusted rate will never be less than

2.50%

per annum. The Revolving Loan accrues interest at adjusted LIBOR plus

2.50%

(resulting in a

3.16%

rate at

January

31,

2017).

The Revolving Loan is payable in monthly payments of interest only with principal and any outstanding interest due and payable at maturity.

OPTICAL CABLE CORPORATION

Condensed Notes to Condensed Consolidated Financial Statements

Three Months Ended

January

31,

2017

(Unaudited)

February

28,

2017,

subsequent to the Company’s fiscal

first

quarter, the Company entered into a Second Loan Modification Agreement (the “Modification Agreement”) extending the maturity date of the Revolver to

March

31,

2019,

and removing certain previously existing provisions of the Revolving Loan that required reductions in availability originally contemplated to occur on

February

28,

2017

and

2018.

As a result, the collective maximum principal amount of the Revolving Loan will remain at

$7.0

million. All other terms of the Revolving Loan remain unaltered and remain in full force and effect. Within the revolving loan limit of the Revolving Loan and the Modification Agreement, the Company

may

borrow, repay, and reborrow, at any time or from time to time until

March

31,

2019.

The Revolving Loan continues to be secured by a perfected

first

lien security interest on all assets, including but not limited to, accounts, as-extracted collateral, chattel paper, commodity accounts, commodity contracts, deposit accounts, documents, equipment, fixtures, furniture, general intangibles, goods, instruments, inventory, investment property, letter of credit rights, payment intangibles, promissory notes, software and general tangible and intangible assets owned now or later acquired. The Revolving Loan is also cross-collateralized with the Company’s real property.

As of

January

31,

2017,

the Company had

$4.6

million of outstanding borrowings on its Revolving Loan and

$2.4

million in available credit. As of

October

31,

2016,

the Company had outstanding borrowings of

$5.0

million on its Commercial Loan and

$2.0

million in available credit.

Note 7 - Fair Value Measurements

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

(7)	Fair Value Measurements

The carrying amounts reported in the condensed consolidated balance sheets as of

January

31,

2017

and

October

31,

2016

for cash, trade accounts receivable, other receivables and accounts payable and accrued expenses, including accrued compensation and payroll taxes, approximate fair value because of the short maturity of these instruments. The carrying values of the Company’s note payable to bank and long-term debt approximate fair value based on similar long-term debt issues available to the Company as of

January

31,

2017

and

October

31,

2016.

Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 8 - Net Loss Per Share

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

(8)	Net Loss Per Share

Basic net loss per share excludes dilution and is computed by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net loss of the Company.

OPTICAL CABLE CORPORATION

Condensed Notes to Condensed Consolidated Financial Statements

Three Months Ended

January

31,

2017

(Unaudited)

The following is a reconciliation of the numerators and denominators of the net loss per share computations for the periods presented:

	Three months ended January 31,
	2017			2016
Net loss attributable to OCC (numerator)	$	(615,767	)	$	(1,745,021	)

Shares (denominator)		6,486,739			6,260,676

Basic and diluted net loss per share	$	(0.09	)	$	(0.28	)

Weighted average unvested shares for the

three

months ended

January

31,

2017

and

2016

totaling

623,415

and

798,872,

respectively, while issued and outstanding, were not included in the computation of basic and diluted net loss per share for the

three

months ended

January

31,

2017

and

2016

(because to include such shares would have been antidilutive, or in other words, to do so would have reduced the net loss per share for those periods).

Note 9 - Segment Information and Business and Credit Concentrations

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

(9)	Segment Information and Business and Credit Concentrations

The Company provides credit, in the normal course of business, to various commercial enterprises, governmental entities and not-for-profit organizations. Concentration of credit risk with respect to trade receivables is limited due to the Company’s large number of customers. The Company also manages exposure to credit risk through credit approvals, credit limits and monitoring procedures. Management believes that credit risks as of

January

31,

2017

and

October

31,

2016

have been adequately provided for in the condensed consolidated financial statements.

For the

three

months ended

January

31,

2017,

16.5%

of consolidated net sales were attributable to

one

customer. For the

three

months ended

January

31,

2016,

11.9%

of consolidated net sales were attributable to the same customer.

The Company has a

single

reportable segment for purposes of segment reporting.

Note 10 - Non-controlling Interest

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Noncontrolling Interest Disclosure [Text Block]

(10)	Non-controlling Interest

August

2008,

OCC acquired

70%

of the authorized membership interests of Centric Solutions LLC (“Centric Solutions”), a limited liability company focused on sales of turnkey cabling and connectivity solutions for the datacenter market. OCC consolidated Centric Solutions for financial reporting purposes and a non-controlling interest was recorded for the other members’ interests in the net assets and operations of Centric Solutions to the extent of the non-controlling members’ investment.

Effective

February

2016,

OCC purchased, for a nominal amount, the membership interest in Centric Solutions of

one

of the non-controlling members, and Centric Solutions purchased, for a nominal amount, and retired the membership units of the remaining non-controlling member. As a result, Centric Solutions became a wholly owned subsidiary of OCC. OCC continues to consolidate Centric Solutions for financial reporting purposes, however, beginning in the

second

quarter of fiscal year

2016,

the Company no longer records a non-controlling interest in its condensed consolidated financial statements.

Note 11 - Contingencies

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

(11)	Contingencies

From time to time, the Company is involved in various claims, legal actions and regulatory reviews arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity.

Note 12 - New Accounting Standards Not Yet Adopted

3 Months Ended

Jan. 31, 2017

Notes to Financial Statements

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

(12)	New Accounting Standards Not Yet Adopted

May

2014,

the FASB issued Accounting Standards Update

2014

09,

Revenue from Contracts with Customers

(“ASU

2014

09”).

ASU

2014

is a comprehensive new revenue recognition model that expands disclosure requirements and requires an entity to recognize revenue when promised goods or services are transferred to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In

August

2015,

the FASB issued Accounting Standards Update

2015

14,

Revenue from Contracts with Customers (Topic

606):

Deferral of the Effective Date

(“ASU

2015

14”)

which defers the effective date of the new revenue recognition standard by

one

year. Under ASU

2015

14,

the new revenue recognition standard is effective for the Company beginning in fiscal year

2019.

The FASB has also issued ASU

2016

08,

ASU

2016

10,

ASU

2016

11,

ASU

2016

12,

and ASU

2016

all of which clarify certain implementation guidance within ASU

2014

09.

The Company is currently evaluating the impact of the adoption of this guidance on the Company's results of operations, financial position and liquidity and its related financial statement disclosures.

July

2015,

the FASB issued Accounting Standards Update

2015

11,

Simplifying the Measurement of Inventory

(“ASU

2015

11”).

ASU

2015

changes the inventory valuation method from lower of cost or market to lower of cost and net realizable value for inventory valued using

first

-in,

first

-out or average cost. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU

2015

is effective for fiscal years beginning after

December

15,

2016,

including interim periods within those fiscal years, and should be applied prospectively with early adoption permitted. The adoption of ASU

2015

is not expected to have any impact on the Company’s results of operations, financial position or liquidity or its related financial statement disclosures.

February

2016,

the FASB issued Accounting Standards Update

2016

02,

Leases

(“ASU

2016

02”).

ASU

2016

requires the recognition of a separate lease liability representing the required lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes of the financial statements. ASU

2016

is effective for fiscal years beginning after

December

15,

2018,

including interim periods within that reporting period with early adoption permitted. The adoption of ASU

2016

is not expected to have a material impact on the Company’s results of operations, financial position or liquidity or its related financial statement disclosures.

OPTICAL CABLE CORPORATION

Condensed Notes to Condensed Consolidated Financial Statements

Three Months Ended

January

31,

2017

(Unaudited)

March

2016,

the FASB issued Accounting Standards Update

2016

09,

Compensation - Stock Compensation (Topic

718):

Improvements to Employee Share-Based Payment Accounting

(“ASU

2016

09”).

ASU

2016

simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification on the statement of cash flows. ASU

2016

is effective for fiscal years beginning after

December

15,

2016,

including interim periods within that reporting period, with early adoption permitted. The adoption of ASU

2016

is not expected to have a material impact on the Company’s results of operations, financial position or liquidity or its related financial statement disclosures.

August

2016,

the FASB issued Accounting Standards Update

2016

15,

Statement of Cash Flows (Topic

230):

Classification of Certain Cash Receipts and Cash Payments

(“ASU

2016

15”).

ASU

2016

provides guidance related to the classification of certain cash receipts and cash payments on the statement of cash flows. The pronouncement provides clarification guidance on

eight

specific cash flow presentation issues that have developed due to diversity in practice. ASU

2016

is effective for fiscal years beginning after

December

15,

2017,

including interim periods within that reporting period, with early adoption permitted. The adoption of ASU

2016

is not expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.

October

2016,

the FASB issued Accounting Standards Update

2016

16,

Income Taxes (Topic

740):

Intra-Entity Transfers of Assets Other Than Inventory

(“ASU

2016

16”).

ASU

2016

requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset (with the exception of inventory) when the transfer occurs. Under current GAAP, entities are prohibited from recognizing current and deferred income taxes for an intra-entity transfer until the asset is sold to a

third

party. Examples of assets that would be affected by the new guidance are intellectual property and property, plant and equipment. ASU

2016

is effective for fiscal years beginning after

December

15,

2017,

including interim periods within that reporting period, with early adoption permitted. The adoption of ASU

2016

is not expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.

There are no other new accounting standards issued, but not yet adopted by the Company, which are expected to materially impact the Company’s financial position, operating results or financial statement disclosures.

Note 4 - Inventories (Tables)

3 Months Ended

Jan. 31, 2017

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	January 31,		October 31,
	2017		2016
Finished goods	$	4,618,609	$	4,657,779
Work in process		2,619,915		2,591,885
Raw materials		8,515,256		7,515,717
Production supplies		287,570		258,585
Total	$	16,041,350	$	15,023,966

Note 5 - Product Warranties (Tables)

3 Months Ended

Jan. 31, 2017

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended
	January 31,
	2017			2016
Balance at beginning of period	$	70,000		$	130,000
Liabilities accrued for warranties issued during the period		71,161			73,968
Warranty claims and costs paid during the period		(32,855	)		(52,730	)
Changes in liability for pre-existing warranties during the period		(23,306	)		(61,238	)
Balance at end of period	$	85,000		$	90,000

Note 2 - Stock Incentive Plans and Other Share-Based Compensation (Details Textual) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	37,000
Allocated Share-based Compensation Expense	$ 148,920	$ 219,073
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	359,831
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings	3,452
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 182 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 3,000,000
Service Based Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	359,831
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	68,636

Note 3 - Allowance for Doubtful Accounts for Trade Accounts Receivable - Summary of Changes in the Allowance for Doubtful Accounts for Trade Accounts Receivable (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Balance	$ 74,266	$ 63,011
Bad debt expense (recovery)	(568)	7,075
Losses charged to allowance	(4,729)
Balance	$ 68,969	$ 70,086

Note 4 - Inventories - Components of Inventories (Details) - USD ($)	Jan. 31, 2017	Oct. 31, 2016	Jan. 31, 2016
Finished goods	$ 4,618,609		$ 4,657,779
Work in process	2,619,915		2,591,885
Raw materials	8,515,256		7,515,717
Production supplies	287,570		258,585
Total	$ 16,041,350	$ 15,023,966	$ 15,023,966

Note 5 - Product Warranties (Details Textual) - USD ($)	3 Months Ended
Note 5 - Product Warranties (Details Textual) - USD ($)	Jan. 31, 2017	Jan. 31, 2016	Oct. 31, 2016	Oct. 31, 2015
Standard and Extended Product Warranty Accrual	$ 85,000	$ 90,000	$ 70,000	$ 130,000
Product Warranty Expense	47,855	$ 12,730
Accounts Payable and Accrued Liabilities [Member]
Standard and Extended Product Warranty Accrual	$ 85,000		$ 70,000

Note 5 - Product Warranties - Changes in Accrual for Product Warranties (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Balance at beginning of period	$ 70,000	$ 130,000
Liabilities accrued for warranties issued during the period	71,161	73,968
Warranty claims and costs paid during the period	(32,855)	(52,730)
Changes in liability for pre-existing warranties during the period	(23,306)	(61,238)
Balance at end of period	$ 85,000	$ 90,000

Note 6 - Long-term Debt and Note Payable to Bank (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2017	Oct. 31, 2016	Apr. 26, 2016
BNC [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 7.0
Long-term Line of Credit	$ 4.6
Line of Credit Facility, Remaining Borrowing Capacity	$ 2.4
BNC [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%
Debt Instrument, Interest Rate, Effective Percentage	3.16%
BNC [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Effective Percentage	2.50%
Virginia Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	3.75%	4.25%
Virginia Real Estate Loan [Member] \| BNC [Member]
Debt Instrument, Interest Rate, Stated Percentage	3.75%
The Commercial Loan [Member] \| BNC [Member] \| Revolving Credit Facility [Member]
Long-term Line of Credit		$ 5.0
Line of Credit Facility, Remaining Borrowing Capacity		$ 2.0
North Carolina Real Estate Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	3.75%	4.25%
North Carolina Real Estate Loan [Member] \| BNC [Member]
Debt Instrument, Interest Rate, Stated Percentage	3.75%

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) - USD ($)	Jan. 31, 2017	Oct. 31, 2016
Long-term Loan	$ 6,874,236	$ 6,945,994
Less current installments	309,505	294,214
Long-term debt, excluding current installments	6,564,731	6,651,780
Virginia Real Estate Loan [Member]
Long-term Loan	5,112,418	5,165,785
North Carolina Real Estate Loan [Member]
Long-term Loan	$ 1,761,818	$ 1,780,209

Note 6 - Long-term Debt and Note Payable to Bank - Long-term Debt (Details) (Parentheticals) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2017	Oct. 31, 2016
Virginia Real Estate Loan [Member]
Original principal	$ 6,500,000	$ 6,500,000
Monthly installments	$ 35,045	$ 36,426
Debt Instrument, Interest Rate, Stated Percentage	3.75%	4.25%
Final payment	$ 4,855,818	$ 4,858,220
Maturity date	Apr. 30, 2018	Apr. 30, 2018
North Carolina Real Estate Loan [Member]
Original principal	$ 2,240,000	$ 2,240,000
Monthly installments	$ 12,077	$ 12,553
Debt Instrument, Interest Rate, Stated Percentage	3.75%	4.25%
Final payment	$ 1,673,389	$ 1,674,217
Maturity date	Apr. 30, 2018	Apr. 30, 2018

Note 8 - Net Income (Loss) Per Share - Components of Reconciliation of Numerators and Denominators Net Loss Per Share (Details) - USD ($)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Net loss attributable to OCC (numerator)	$ (615,767)	$ (1,745,021)
Shares (denominator) (in shares)	6,486,739	6,260,676
Basic and diluted net loss per share (in dollars per share)	$ (0.09)	$ (0.28)

Note 9 - Segment Information and Business and Credit Concentrations (Details Textual)	3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Number of Reportable Segments	1
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member]
Concentration Risk, Number of Customers	1	1
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Customer One [Member]
Concentration Risk, Percentage	16.50%	11.90%

Note 10 - Non-controlling Interest (Details Textual)	Aug. 01, 2008
Centric Solutions LLC [Member]
Business Acquisition, Percentage of Voting Interests Acquired	70.00%

Note 8 - Net Loss Per Share (Details Textual) - shares	3 Months Ended
Note 8 - Net Loss Per Share (Details Textual) - shares	Jan. 31, 2017	Jan. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	623,415	798,872