<SEC-DOCUMENT>0001144204-16-087178.txt : 20160415
<SEC-HEADER>0001144204-16-087178.hdr.sgml : 20160415
<ACCEPTANCE-DATETIME>20160310152313
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001144204-16-087178
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160310

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			R F INDUSTRIES LTD
		CENTRAL INDEX KEY:			0000740664
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC CONNECTORS [3678]
		IRS NUMBER:				880168936
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		7610 MIRAMAR RD
		STREET 2:		BLDG 6000
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92126-2313
		BUSINESS PHONE:		8585496340

	MAIL ADDRESS:	
		STREET 1:		7620 MIRAMAR RD #4100
		STREET 2:		7620 MIRAMAR RD #4100
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92126-4202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CELLTRONICS INC
		DATE OF NAME CHANGE:	19910204
</SEC-HEADER>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>RF Industries, Ltd.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">7610 Miramar Road, Building 6000</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">San Diego, CA 92126</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">March 10, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">VIA EDGAR</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Division of Corporate Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Attn: Martin James&mdash;Senior Assistant
Chief Accountant</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">Re:</TD><TD STYLE="text-align: justify">RF Industries, Ltd.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Form 10-K
for the Fiscal Year Ended October 31, 2015</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Filed January
28, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>File No.
000-13301</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dear Mr. James:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">By letter dated February 26, 2016, the staff
of the Securities and Exchange Commission (the &ldquo;Staff&rdquo;) provided this company, RF Industries, Ltd., with comments to
this company&rsquo;s Annual Report on Form 10-K for the year ended October 31, 2015. This letter contains the responses of RF Industries,
Ltd. to the Staff&rsquo;s comments. The numbers of the responses and the headings set forth below correspond to the numbered comments
and headings in the February 26 letter from the Staff.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Form 10-K for the fiscal year ended October 31, 2015</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Management&rsquo;s Report on Internal Control Over Financial
Reporting, page 19 </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.&#9;You disclose that management used the framework Internal
Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Please tell
us whether management used the COSO framework of 2013 in performing its assessment and revise the report in future filings to disclose
the framework used, as required by Item 308(a)(2) of Regulation S-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Company Response </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This will confirm that
management conducted its assessment of the effectiveness of our internal control over financial reporting based on the framework
in <I>Internal Control &ndash; Integrated Framework (2013)</I> issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on this evaluation, management concluded that this company&rsquo;s internal control over financial reporting
was effective as of October 31, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In future filings,
we will revise our disclosure to reference that management conducted an evaluation of the effectiveness of our internal control
over financial reporting based on the framework in <I>Internal Control &ndash; Integrated Framework (2013)</I> issued by the Committee
of Sponsoring Organizations of the Treadway Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Item 8. Financial Statements </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Note 1. Business Activities and Summary of Significant Accounting
Policies </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Inventories, page F-8 </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.&#9;You disclose that inventories are valued at their weighted
average cost. Please tell us how you considered ASC 330-10-35-1 through 35-11 which also requires you to value inventories at the
lower of cost or market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Company Response </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Inventories are stated
at the lower of cost or market, with cost determined using the weighted average cost method of accounting. Cost includes materials,
labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities
on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a
reduction in utility below carrying value due to damage, physical deterioration, obsolescence, changes in price levels, or other
causes, we reduce our inventory to a new cost basis through a charge to cost of sales in the period in which it occurs. The determination
of market value and the estimated volume of demand used in the lower of cost or market analysis require significant judgment<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In future filings,
we will include all of the disclosures required by ASC 330-10-35-1 through 34.11.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Note 2. Business Acquisitions, page F-11 </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.&#9;Please tell us why the acquisition of Comnet was effective
for financial accounting purposes as of November 1, 2014 considering the closing of the agreement occurred on January 20, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Company Response </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The date on which the acquirer obtains control
of the acquiree generally is the acquisition date---the date used to measure and recognize a business combination. However, &ldquo;control&rdquo;
(the ability to determine the direction of management and policies of the acquiree) can change before the closing date based on
the intention and conduct of all parties, and as reflected by the administration of the acquiree, and based on the allocation of
economic benefits/burdens of the business combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">RF Industries acquired legal ownership of
Comnet on January 20, 2015, the date that Robert Portera, the seller, sole shareholder and the President of Comnet, sold all of
the shares of Comnet to RF Industries. We believe, however, that <I>de facto</I> control over Comnet shifted to RF Industries on
November 5, 2014, and not when RF Industries paid the purchase price in January 2015. However, from an operational standpoint,
we were actively involved in the management of Comnet on November 1, 2014, and from a financial and cash standpoint, all of the
financial benefits and costs of owning Comnet flowed to RF Industries effective November 1, 2014. All cash and profits that Comnet
earned after November 1, 2014 were kept by RF Industries, not by Mr. Portera.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 11, 2014, we entered into a non-binding
letter of intent with Robert Portera to purchase all of the shares of Comnet from Mr. Portera. The letter of intent provided that
the closing date would be November 1, 2014. The July 11, 2014 letter of intent also provided that after we had completed our due
diligence investigation of Comnet, the proposed purchase price would be further negotiated. Accordingly, in October 2014 the parties
revisited the purchase price and engaged in further price negotiations. In connection with those negotiations, on October 29, 2014
we withdrew the July 11, 2014 letter of intent. Negotiations continued, and shortly thereafter the parties agreed on the revised
terms of the acquisition. The new purchase price terms were thereafter documented (in the form of a term sheet) in the November
5, 2014 counter proposal (the &ldquo;Counteroffer&rdquo;). The Counteroffer was signed by both parties and obligated RF Industries
to purchase Comnet on the terms specified in the Counteroffer (the Counteroffer stated that &ldquo;RFIL shall acquire all of the
outstanding capital stock of [Comnet], contemplated to be effective on or after November 1, 2014 (Closing Date) or as soon thereafter
as possible&rdquo;). Although the Counteroffer did not contain any conditions to closing, both parties informally acknowledged
that the closing was subject to the negotiation and execution of a definitive purchase agreement. The Counteroffer included a new
earn-out provision and contemplated that Mr. Portera would remain the President of Comnet. Mr. Portera would report to Darren Clark,
the President of Cables Unlimited, Inc., one of our other subsidiaries (Mr. Portera&rsquo;s employment agreement that he signed
on January 20, 2015 confirmed this arrangement and specifically required him to report to Mr. Clark).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Having agreed on the price and management
structure, Mr. Portera and RF Industries thereafter treated November 1, 2014 as the acquisition date for (i) financial accounting
purposes, (ii) the purposes of determining the earn-out, (iii) for Federal and other tax purposes, and (iv) for many administrative
purposes. Commencing in November 2014, Comnet largely operated as if it were a division of this company, as indicated by the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">a.&#9;Beginning in early November 2014,
through January 20, 2015, and continuing thereafter, Mr. Portera has reported to Darren Clark, the President of Cables Unlimited,
Inc. From the beginning of November 2014 until the January 2015 closing, Mr. Portera was in constant (almost daily) contact with
Mr. Clark regarding his duties, his authority and the general management of Comnet. For example, during this period, Mr. Portera
contacted Mr. Clark to discuss, and to get approval for, many operational aspects of the Comnet, such as requesting approval for
larger equipment purchases, paying employee bonuses, and handling customer issues. We instructed Mr. Portera to reduce his salary
(which he did, effective November 1) and to cut the number of his employees (he terminated at least two employees). In fact, Mr.
Portera even submitted his personal expense reports to us and his request for a vacation to Mr. Clark for approval. In effect,
Mr. Portera was operating as the head of an RF Industries subsidiary for the benefit of RF Industries&rsquo; combined operations,
and RF Industries exercised control over Comnet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">b.&#9;RF Industries assumed all United States
Federal corporate income taxes of Comnet that arose as a result of income that it earned during the period commencing on November
1, 2014 and ending on the closing. Since Comnet was an &ldquo;S&rdquo; corporation, Mr. Portera (as the sole stockholder of Comnet)
had to pay Comnet&rsquo;s income taxes. However, under the stock purchase agreement, we reimbursed Mr. Portera for all United States
Federal corporate income tax that he had to pay as a result of income earned by Comnet during the period commencing on November
1, 2014 and ending on the closing. Mr. Portera was responsible for all state and local taxes that Comnet incurred up to October
31, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">c.&#9;From an administrative perspective,
as directed by RF Industries, Comnet&rsquo;s personnel began integrating their financial statements and reporting procedures into
our systems while also training Comnet&rsquo;s personnel on the procedures for maintaining Comnet&rsquo;s financial statements
and financial controls in a manner that complies with those of a publicly traded company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">d.&#9;Under the Counteroffer, Mr. Portera
received a right to earn up to $1,360,000 based on the &ldquo;Adjusted EBITDA&rdquo; of Comnet during the two years commencing
on November 1, 2014. &ldquo;Adjusted EBITDA&rdquo; was defined as the amount of EBITDA generated by Comnet commencing on November
1, 2014, as adjusted to reflect costs and expenses imposed on Comnet as a result of being part of the consolidated group of companies
controlled by RF Industries, the parent public company. As a result, starting on November 1, 2014, Mr. Portera was incentivized
to operate Comnet as part of the consolidated group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Once RF Industries and Comnet agreed to
the Counteroffer, it was our intention to close the Comnet acquisition as soon as possible (our goal and expectation was to close
by mid-November 2014). In fact, in order to enable Mr. Portera to tell his customers, vendors and employees that Comnet was being
bought by RF Industries, we issued a press release on November 11, 2014 announcing our intention to do so. Unfortunately, despite
our efforts, the closing was delayed for various reasons including, the inattention of the seller&rsquo;s lawyer (he eventually
was terminated and replaced on December 5, 2014 because of his lack of diligence to the stock purchase agreement), and delays by
the seller&rsquo;s professionals and personnel during the holidays (the seller&rsquo;s lawyer finally provided us with ministerial
comments on December 31). However, while the lawyers were finalizing disclosure schedules and other closing papers, from an operational
standpoint both parties considered the change of ownership (and the risks and benefits thereof) to have occurred on November 1,
2014, not January 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All of the financial benefits of owning
Comnet actually belonged to RF Industries starting November 1, 2014. During the period between November 1, 2014 and January 20,
2015 Comnet generated cash from its operations; RF Industries kept all of that cash, not Mr. Portera. Accordingly, by deeming the
acquisition to have been effective on November 1, 2014, the financial statements accurately reflect the actual operations of the
combined companies as of November 1, 2014. (Although RF Industries reaped all of the benefits of Comnet&rsquo;s operations after
November 1, 2014, the stock purchase agreement did include a closing purchase price adjustment in the event that Comnet&rsquo;s
working capital balance at the closing was significantly less than the representations that Mr. Portera made to us regarding Comnet&rsquo;s
normal working capital balances. The purpose of the potential closing adjustment was not to adjust the purchase price for normal
operational variances or even a slight decline in Comnet&rsquo;s operations, but solely to address a misrepresentation of Comnet&rsquo;s
working capital. Mr. Portera had represented that Comnet&rsquo;s average monthly working capital was approximately $600,000. Comnet&rsquo;s
actual working capital on November 1, 2014 was $587,000. In order to ensure that the working capital representations were accurate,
the purchase price would be adjusted if Comnet&rsquo;s working capital on the closing date was less than $400,000. Comnet&rsquo;s
working capital at closing significantly exceeded the $400,000 floor, and no adjustment was necessary.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Commencing as early as July 2014, it was
our intention (and the intention of Mr. Portera) to have all financial statement and economic consequence of Comnet shift to us
after the November 5, 2014 Counteroffer, and we acted accordingly. (We used November 1 as the effective date rather than November
5 to simplify accounting and administrative functions, because the difference between those dates was believed to be <I>de minimis</I>).
We have fully disclosed in all of our SEC reports that the acquisition was deemed effective as of November 1, 2014 with a closing
date of January 20, 2015. In fact, in the Form 8-K filed the day after the January 20, 2015 closing, and in our Form 10-K filed
nine days thereafter, we disclosed that the acquisition was deemed effective as of November 1, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since RF Industries received the benefits
and bore the burdens of Comnet&rsquo;s operations beginning November 5, 2014, and since Comnet was treated by both Mr. Portera
and this company as if it were part of RF Industries during the period commencing in early November 2014, we respectfully submit
that effective control over, and the benefits and burdens of owning Comnet shifted to RF Industries in November 2014 and, therefore,
that it is appropriate to deem the transaction to be effective as of November 1, 2014 for accounting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Note 2. Business Acquisitions, page F-11 </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4. &#9;To the extent material, please revise your future filings
to include all of the disclosures required by ASC 805-10-50-2(h)(3).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Company Response </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In future filings, to the extent material,
we will include all of the disclosures required by ASC 805-10-50-2(h)(3).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">* * * * *</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As requested by the Staff, we hereby acknowledge
that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>This company is responsible for the adequacy and accuracy of the disclosure in the filing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action
with respect to the filing; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>This company may not assert staff comments as a defense in any proceeding initiated by the Commission
or any person under the federal securities laws of the United States.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Please direct questions regarding this letter
or the amended Form 10-K to the undersigned at (858) 549-6340.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%">Very truly yours,</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>/s/ MARK TURFLER</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>Mark Turfler</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>Chief Financial Officer</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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