Commitments and Contingencies	3 Months Ended
Jan. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies: The Company, in the ordinary course of business, is subject to claims made, and from time to time is named as a defendant in legal proceedings relating to the sales of its products. The Company believes that the reserves reflected in its financial statements are adequate to pay losses and loss adjustment expenses which may result from such claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. On March 22, 2021, the Company was served with a complaint related to an injury to an employee working at a Stericycle facility in North Little Rock, Arkansas. The employee was working on a baler manufactured by the Company in 2003. The employee suffered an injury to his left hand on April 10, 2018. The plaintiff is Scott Tinsley, the injured employee. The Company’s insurance policy related to this complaint has a deductible of $20,000 and the Company has recorded an accrued liability for its estimated loss. On July 27, 2021, the Company was served with a complaint related to an injury to an employee working at Mackay Mitchell Envelope Company in Mount Pleasant, Iowa. On August 10, 2019, the employee, Xaisavath Phanthouvong, was working on a baler manufactured by the Company in 2003. The employee suffered a serious injury to his left hand. The Company’s insurance policy related to this complaint has no deductible. On February 21, 2022 the Company was notified that this complaint has been dismissed, without prejudice. On December 3, 2021 the Company filed a complaint in Duval County, Florida against California Recyclers, Inc. (“CRI”) alleging breach of contract on the basis of CRI’s failure to pay the remaining 10% on a baler sold to CRI in January 2021. The Company and CRI have been in a continuing dispute as to whether the baler was capable of meeting the output specifications as originally quoted by the Company. Based on the way CRI has continued to operate the baler, the Company has concluded that there is no point in continuing this relationship. The Company has agreed to refund the amount paid by CRI and take the baler back. The Company has recorded an amount of $490,000 sales returns and set up a reserve for that amount in current liabilities on the Company’s balance sheet. Management estimates that there is a potential additional loss of up to $100,000, but believes that the likelihood of this loss is remote.

Commitments and Contingencies

3 Months Ended

Jan. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

9. Commitments and Contingencies:

The Company, in the ordinary course of business, is subject to claims made, and from time to time is named as a defendant in legal proceedings relating to the sales of its products. The Company believes that the reserves reflected in its financial statements are adequate to pay losses and loss adjustment expenses which may result from such claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity.

On March 22, 2021, the Company was served with a complaint related to an injury to an employee working at a Stericycle facility in North Little Rock, Arkansas. The employee was working on a baler manufactured by the Company in 2003. The employee suffered an injury to his left hand on April 10, 2018. The plaintiff is Scott Tinsley, the injured employee. The Company’s insurance policy related to this complaint has a deductible of $20,000 and the Company has recorded an accrued liability for its estimated loss.

On July 27, 2021, the Company was served with a complaint related to an injury to an employee working at Mackay Mitchell Envelope Company in Mount Pleasant, Iowa. On August 10, 2019, the employee, Xaisavath Phanthouvong, was working on a baler manufactured by the Company in 2003. The employee suffered a serious injury to his left hand. The Company’s insurance policy related to this complaint has no deductible. On February 21, 2022 the Company was notified that this complaint has been dismissed, without prejudice.

On December 3, 2021 the Company filed a complaint in Duval County, Florida against California Recyclers, Inc. (“CRI”) alleging breach of contract on the basis of CRI’s failure to pay the remaining 10% on a baler sold to CRI in January 2021. The Company and CRI have been in a continuing dispute as to whether the baler was capable of meeting the output specifications as originally quoted by the Company. Based on the way CRI has continued to operate the baler, the Company has concluded that there is no point in continuing this relationship. The Company has agreed to refund the amount paid by CRI and take the baler back. The Company has recorded an amount of $490,000 sales returns and set up a reserve for that amount in current liabilities on the Company’s balance sheet. Management estimates that there is a potential additional loss of up to $100,000, but believes that the likelihood of this loss is remote.

INTERNATIONAL BALER CORP 10-Q