XML 33 R21.htm IDEA: XBRL DOCUMENT

Note 14 - Commitments

12 Months Ended

Oct. 31, 2021

Notes to Financial Statements

Commitments Disclosure [Text Block]

Note 14 – Commitments

We adopted ASU 2016-02 on November 1, 2019, and elected the practical expedient modified retrospective method whereby the lease qualification and classification was carried over from the accounting for leases under ASC 840. The lease contracts for the corporate headquarters, RF Connector division manufacturing facilities, Cables Unlimited, Rel-Tech, and C Enterprises commenced prior to the effective date of November 1, 2019, and were determined to be operating leases. All other new contracts have been assessed for the existence of a lease and for the proper classification into operating leases. The rate implicit in the leases was undeterminable and, therefore, the discount rate used in all lease contracts is our incremental borrowing rate.

We have operating leases for corporate offices, manufacturing facilities, and certain storage units. Our leases have remaining lease terms of one year to five years. A portion of our operating leases are leased from K&K Unlimited, a company controlled by Darren Clark, the former owner and current President of Cables Unlimited, to whom we make rent payments totaling $16,000 per month.

We also have other operating leases for certain equipment. The components of our facilities and equipment operating lease expenses for the period ended October 31, 2021 were as follows (in thousands):

		Fiscal Year Ended
		October 31, 2021
Operating lease cost		$	1,019
Short-term lease cost			1

Other information related to leases was as follows (in thousands):

		October 31, 2021
Supplemental Cash Flows Information
Right of use assets obtained in exchange for lease obligations:
Operating leases		$	1,453

Weighted Average Remaining Lease Term
Operating leases (in months)		25.26

Weighted Average Discount Rate
Operating leases			3.54	%

Future minimum lease payments under non-cancellable leases as of October 31, 2021 were as follows (in thousands):

Year ended October 31,		Operating Leases
2022		$	891
2023			478
2024			234
2025			13
Thereafter			7
Total future minimum lease payments			1,623
Less imputed interest			(116	)
Total		$	1,507

Reported as of October 31, 2021		Operating Leases
Other current liabilities		$	832
Operating lease liabilities			675
Finance lease liabilities			-
Total		$	1,507

As of October 31, 2021, operating lease ROU asset was $1.5 million and operating lease liability totaled $1.5 million, of which $832,000 is classified as current. There were no finance leases as of October 31, 2021.