Company: OCC
Filing Date: 2025-09-11
Form Type: 10-Q
Source: 0001437749-25-028857
Chunk: 46

Company: OPTICAL CABLE CORP
Filing Date: 2025-09-11
Form: 10-Q
Item: Item 1
Chunk 46
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,000, or 4.0%, to $18.7 million at July 31, 2025, from $19.5 million at October 31, 2024. The decrease in total liabilities was primarily due to a decrease in note payable, revolver - current totaling $1.9 million, resulting from net repayments on our Revolver, partially offset by increases in accounts payable and accrued expenses totaling $915,000, resulting from the timing of certain vendor payments.

The Company issued 642,199 shares of redeemable restricted common stock for $2.0 million, reflected as temporary equity, during the first nine months of fiscal year 2025 as a result of a Stock Purchase Agreement with Lightera, LLC, dated July 7, 2025. As of July 31, 2025, the aggregate redemption value of the redeemable restricted common stock increased to $3.2 million. Also see note 12 to the condensed consolidated financial statements.

Total shareholders’ equity at July 31, 2025 decreased $2.6 million in the first nine months of fiscal year 2025 resulting primarily from a net loss of $1.5 million, issuance costs totaling $92,000 related to the issuance of redeemable restricted common stock and the $1.2 million increase to the aggregate redemption value of the redeemable restricted common stock as of July 31, 2025, partially offset by share-based compensation, net of $186,000.

Liquidity and Capital Resources

Our primary capital needs have been to fund working capital requirements through our Revolver. Our primary source of capital for this purpose has been existing cash, cash provided by operations, and borrowings under our Revolver (see “Credit Facilities” below).

Our cash totaled $421,000 as of July 31, 2025, an increase of $177,000 compared to $244,000 as of October 31, 2024. The increase in cash for the nine months ended July 31, 2025 primarily resulted from net cash provided by operating activities of $617,000, partially offset by capital expenditures of $217,000 and net cash used in financing activities of $206,000.

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On July 31, 2025, we had working capital of $13.7 million compared to $15.5 million on October 31, 2024. The ratio of current assets to current liabilities as of July 31, 2025 was 1.