Company: OCC
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001437749-25-019494
Chunk: 90

Company: OPTICAL CABLE CORP
Filing Date: 2025-06-05
Form: 10-Q
Item: Item 8
Chunk 90
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 operating loss for tax purposes would be offset by a corresponding increase to our valuation allowance against our net deferred tax assets.

If we generate sufficient income before taxes in subsequent periods such that U.S. GAAP would permit us to conclude that the removal of any valuation allowance against our net deferred tax asset is appropriate, then during the period in which such determination is made, we will recognize the non-cash benefit of such removal of the valuation allowance in income tax expense on our consolidated statement of operations, which will increase net income and will also increase the net deferred tax asset on our consolidated balance sheet. If we do not generate sufficient income before taxes in subsequent periods such that U.S. GAAP would permit us to conclude that the reduction or removal of any valuation allowance against our net deferred tax asset is appropriate, then no such non-cash benefit would be realized. There can be no assurance regarding any future realization of the benefit by us of all or part of our net deferred tax assets.

As of October 31, 2024, the valuation allowance against our total gross deferred tax assets totaled $4.9 million.

20

Net Loss

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.

Six Months Ended April 30, 2025 and 2024

Net Sales

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.

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.

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