Company: OCC
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001437749-25-019494
Chunk: 69

Company: OPTICAL CABLE CORP
Filing Date: 2025-06-05
Form: 10-Q
Item: Item 8
Chunk 69
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 expense for the three months and six months ended April 30, 2025 totaled $22,314 and $31,941, respectively. Warranty claims expense for the three months and six months ended April 30, 2024 totaled $39,078 and $51,842, respectively. Warranty claims expense includes certain costs to investigate claims and potential claims, and the costs to replace and/or repair product pursuant to claims, which can include claims not deemed valid by the Company.

The following table summarizes the changes in the Company’s accrual for product warranties during the six months ended April 30, 2025 and 2024:

			Six Months Ended 

			April 30,

			2025

			2024

			Balance at beginning of period

			$
			65,000

			$
			80,000

			Liabilities accrued for warranties issued during the period

			64,498

			73,342

			Warranty claims and costs paid during the period

			(31,941
			)

			(56,842
			)

			Changes in liability for pre-existing warranties during the period

			(32,557
			)

			(21,500
			)

			Balance at end of period

			$
			65,000

			$
			75,000

			(6)

			Long-term Debt and Notes Payable 

The Company has credit facilities consisting of a real estate term loan, as amended and restated (the “Virginia Real Estate Loan”), and a Revolving Credit Master Promissory Note and related Loan and Security Agreement (collectively, the “Revolver”).

The Virginia Real Estate Loan is with Northeast Bank and is payable in monthly installments of principal and interest. Principal is calculated using the unpaid balance of the loan and a two hundred forty (240) month amortization schedule. Interest is computed on the aggregate principal balance outstanding at a rate equal to the Prime Rate, adjusted monthly on the fifth day of each calendar month in accordance with changes to the Prime Rate, provided, however, that the interest rate is never less than 8.5% per annum on the basis of a 360-day year times the actual number of days elapsed. The Prime Rate was 7.5% per annum at April 30, 2025 and 8.0% at October 31, 2024. The maturity date of