SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Oct. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of fair value of derivative instruments

As of October 31, 2024 and October 31, 2023, all derivative instruments were recorded at fair value on our Consolidated Balance Sheets as follows (in thousands):

	October 31, 2024			October 31, 2023
	Balance Sheet	Fair		Balance Sheet	Fair
Derivatives	Location	Value		Location	Value
Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	165	Derivative assets	$	363
Foreign exchange forward contracts	Derivative liabilities	$	430	Derivative liabilities	$	1,232
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	158	Derivative assets	$	377
Foreign exchange forward contracts	Derivative liabilities	$	275	Derivative liabilities	$	589

Schedule of effect of derivative instruments on the balance Sheets, statements of changes in shareholders' equity and statements of operations

Derivative instruments had the following effects on our Consolidated Balance Sheets, Consolidated Statements of Changes in Shareholders’ Equity, and Consolidated Statements of Operations, net of tax, during the fiscal years ended October 31, 2024, 2023, and 2022 (in thousands):

Location of

Amount of Gain (Loss)

Gain (Loss)

Amount of Gain (Loss)

Recognized in

Reclassified

Reclassified from

Other Comprehensive

From Other

Other Comprehensive

Income (Loss)

Comprehensive

Income (Loss)

Derivatives

2024

2023

2022

Income (Loss)

2024

2023

2022

Designated as Hedging Instruments:

(Effective Portion)

Foreign exchange forward contracts

Cost of sales

– Intercompany sales/purchases

(727)

(1,465)

(384)

and service

(1,339)

488

(191)

Foreign exchange forward contract

– Net investment

(29)

(99)

401

Schedule of derivative instruments not designated as hedging instruments

We recognized the following gains and losses in our Consolidated Statements of Operations during the fiscal years ended October 31, 2024, 2023, and 2022 on derivative instruments not designated as hedging instruments (in thousands):

		Amount of Gain (Loss)
	Location of Gain (Loss)	Recognized in Operations
Derivatives	Recognized in Operations	2024		2023		2022
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other expense, net	$	(1,751)	$	(3,112)	$	2,374

Schedule of accumulated other comprehensive loss

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the fiscal years ended October 31, 2024 and 2023 (in thousands):

	Foreign		Cash
	Currency		Flow
	Translation		Hedges		Total
Balance, October 31, 2022	$	(21,259)	$	(266)	$	(21,525)
Other comprehensive income (loss) before reclassifications		3,274		(1,465)		1,809
Reclassifications		—		(488)		(488)
Balance, October 31, 2023	$	(17,985)	$	(2,219)	$	(20,204)
Other comprehensive income (loss) before reclassifications		3,474		(727)		2,747
Reclassifications		—		1,339		1,339
Deferred income tax valuation allowances		—		(276)		(276)
Balance, October 31, 2024	$	(14,511)	$	(1,883)	$	(16,394)

Schedule of property and equipment estimated useful lives

	Number of Years
Land	Indefinite
Building	40
Machines	7 – 10
Shop and office equipment	3 – 7
Building & leasehold improvements	3 – 40

Schedule of estimated amortization expense

Estimated amortization expense for the remaining unamortized software development costs, which includes projects still in progress, for the fiscal years ending October 31, is as follows (in thousands):

Fiscal Year	Amortization Expense
2025	$	1,065
2026		931
2027		1,302
2028		1,151
2029 and thereafter		2,594

Schedule of intangible assets

As of October 31, 2024, the balances of intangible assets were as follows (in thousands):

	Weighted
	Average		Gross
	Amortization		Intangible		Accumulated		Net Intangible
	Period		Assets		Amortization		Assets
Tradenames and trademarks	indefinite		$	177	$	—	$	177
Tradenames and trademarks	14	years		749		(381)		368
Customer relationships	15	years		371		(286)		85
Technology	13	years		666		(581)		85
Noncompete	5	years		580		(580)		—
Patents	6	years		2,973		(2,933)		40
Other	8	years		393		(385)		8
Total			$	5,909	$	(5,146)	$	763

As of October 31, 2023, the balances of intangible assets, other than goodwill, were as follows (in thousands):

	Weighted
	Average		Gross
	Amortization		Intangible		Accumulated		Net Intangible
	Period		Assets		Amortization		Assets
Tradenames and trademarks	indefinite		$	177	$	—	$	177
Tradenames and trademarks	14	years		742		(324)		418
Customer relationships	15	years		369		(270)		99
Technology	13	years		647		(514)		133
Noncompete	5	years		580		(493)		87
Patents	6	years		2,973		(2,909)		64
Other	8	years		392		(376)		16
Total			$	5,880	$	(4,886)	$	994

Schedule of computation of basic and diluted net income (loss) per share

	Fiscal Year Ended October 31,
	2024				2023				2022
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net (loss) income	$	(16,608)	$	(16,608)	$	4,389	$	4,389	$	8,226	$	8,226
Undistributed earnings allocated to participating shares		—		—		(61)		(61)		(97)		(97)
Net (loss) income applicable to common shareholders	$	(16,608)	$	(16,608)	$	4,328	$	4,328	$	8,129	$	8,129
Weighted average shares outstanding		6,489		6,489		6,499		6,499		6,580		6,580
Stock options and contingently issuable securities		—		—		—		29		—		52
		6,489		6,489		6,499		6,528		6,580		6,632
(Loss) income per share	$	(2.56)	$	(2.56)	$	0.67	$	0.66	$	1.24	$	1.23