10-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

_________________

FORM 10-K

_________________

x     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: October 31, 2014

or

o     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from: _____________ to _____________

_________________

International Baler Corporation

(Exact name of registrant as specified in its charter)

_________________

Delaware	0-14443	13-2842053
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation or Organization)	File Number)	Identification No.)

5400 Rio Grande Avenue, Jacksonville, Florida 32254
(Address of Principal Executive Offices) (Zip Code)

904-358-3812
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class
Name of each exchange on which registered

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $.01 par value per share

Title of each class
Name of each exchange on which registered

_________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     Yes  o     No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.     Yes  o     No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x     No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  o     No  o 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.     Yes o       No  o 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer  o Accelerated filer  o Non-accelerated filer  o Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes  o     No  x

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. (April 30, 2014 closing price $1.91) : $4,007,843

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     Yes  o    No  o

APPLICABLE ONLY TO CORPORATE REGISTRANTS

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date (January 15, 2015): 5,183,895

-1-

Table of Contents
PART I			Page
	Item 1.	Business	2
	Item 2.	Properties	6
	Item 3.	Legal Proceedings	6
PART II
	Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	7
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	8
	Item 8.	Financial Statements and Supplementary Data	10
	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	11
	Item 9A.	Controls and Procedures	11
	Item 9B.	Other Information	12
PART III
	Item 10.	Directors and Executive Officers and Corporate Governance	13
	Item 11.	Executive Compensation	16
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	19
	Item 13.	Certain Relationships and Related Transactions, and Director Independence	21
	Item 14.	Principal Accountant Fees and Service	22
PART IV
	Item 15.	Exhibits, Financial Statements and Schedules	23
SIGNATURES			25

-2-

PART I

ITEM 1. BUSINESS

International Baler Corp. was incorporated on September 10, 1975, in the State of Delaware under the name B.W. Energy Systems, Inc. Its name was changed to Waste Technology Corp. in August 1983. In March 2009, Waste Technology Corporation’s wholly-owned subsidiary, International Baler Corporation (IBC), was merged into Waste Technology Corporation and the Company changed its name to International Baler Corporation. International Baler Corporation maintains its executive offices and manufacturing facilities at 5400 Rio Grande Avenue, Jacksonville, Florida 32254. The Company’s telephone number is (904) 358-3812. The Company's fiscal year end is October 31.

General

The Company is a manufacturer of baling equipment which is fabricated from steel and utilizes hydraulic and electrical components to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models, as well as custom models to meet specific customer requirements.

Products

Balers utilize mechanical, hydraulic, and electrical mechanisms to compress a variety of materials into bales for easier and lower cost handling, shipping, disposal, storage, and/or bulk sales for recycling. The Company offers a wide variety of balers, certain types that are standardized and others that are designed to specific customer requirements. The Company's products include (i) general purpose horizontal and vertical balers, (ii) specialty balers, such as those used for textile materials, used clothing, aluminum cans, 55-gallon drums and synthetic rubber; and (iii) accessory equipment such as conveyors, fluffers, bale tying machines, and plastic bottle piercers (machines which puncture plastic bottles before compaction for greater density).

General Purpose Balers

These balers are designed for general purpose compaction of waste materials. They are manufactured in either vertical or horizontal loading models, depending on available floor space and desired capacity. Typical materials that are handled by this equipment include paper, corrugated boxes, and miscellaneous solid waste materials. These balers range in bale weight capacity from approximately 300 to 2,000 pounds and range in price from approximately $5,000 to $500,000. General purpose baler sales constituted approximately 42% and 50% of net sales for the fiscal years ended October 31, 2014 and 2013, respectively.

Specialty Balers

Specialty balers are designed for specific applications which require modifications of the general baler configuration. The rubber baler is designed to apply pressure in such a way as to compress the synthetic rubber into a self-contained bale that does not require tying. The scrap metal baler is designed to form a bale, referred to as a scrap metal "briquette" of specified size and weight. The drum crusher baler is capable of collapsing a standard 55-gallon drum into a "pancake" approximately four (4) to eight (8) inches high, which also serves to contain any remaining contents. The textile baler is capable of compressing and baling loose fibers, which do not ordinarily adhere to each other under pressure. In addition, a double chamber baler has been designed for use by the clothing and textile industries.

Specialty balers range in price from approximately $5,000 to $550,000, and are less exposed to competitive pressures than are general purpose balers. Specialty baler sales constituted approximately 45% and 35% of net sales for the fiscal years ended October 31, 2014 and 2013, respectively.

-3-

Accessory Equipment

The Company manufactures and markets a number of accessory equipment items in order to market a complete waste handling system. This equipment includes conveyors, which carry waste from floor level to the top of large horizontal balers; extended hoppers on such balers; rufflers, which break up material to improve bale compaction; electronic start/stop controls and hydraulic oil coolers and cleaners. For 2014 and 2013, accessory equipment did not represent a significant percentage of net sales.

Manufacturing

The Company manufactures its products, in its facility in Jacksonville, Florida, where it maintains a fully equipped and staffed manufacturing plant. IBC purchases raw materials, such as steel sheets and beams and components such as hydraulic pumps, valves and cylinders, and certain controls and other electric equipment which are used in the fabrication of the balers. The Company has no long-term supply agreements, and has not experienced unusual delays in obtaining raw materials or components.

The raw materials required by IBC to manufacture the balers, principally steel, motors, and hydraulic systems, are readily available from a number of sources and IBC is not dependent on any particular source. IBC is not dependent on any significant patents, trademarks, licenses, or franchises in connection with its manufacture of balers.

While IBC maintains an inventory of raw materials, most of it is intended for specific orders and inventory turnover is relatively rapid. Approximately 60% of its inventory turns over in 45 to 90 days and the remaining balance, consisting of customized equipment, turns over in 3 to 6 months. IBC's business is not seasonal.

Sales and Marketing

IBC sells its products throughout the United States and to some extent in Europe, the Far East, and South America to manufacturers of synthetic rubber and polymers, plastic recycling facilities, power generating facilities, textile mills, paper mills, cotton gins, supermarkets and other retail outlets, paper recycling facilities, and municipalities.

IBC has a sales force of four (4) employees, including one regional sales manager, who rely upon responses to advertising, personal visits, attendance at trade shows, referrals from existing customers and telephone calls to dealers and/or end users. Approximately 60% of sales are made through manufacturer's representatives and dealers. Sales made through the Company’s dealers are generally discounted and sales are recorded net of the discount amount. Occasionally sales are made with a commission payment, selling expense, through a representative who is not a dealer.

The Company's general purpose balers are sold throughout the United States to such end users as waste producing retailers, manufacturing and fabricating plants, bulk material producers, and solid waste recycling facilities. Specialty balers are sold worldwide, including Europe, the Far East, and South America to manufacturers of rubber and polymers, plastic recycling facilities, paper recycling facilities, textile mills and power generating facilities. During fiscal 2014, foreign sales amounted to $9,741,075 or approximately 49% of the Company’s net sales while in fiscal 2013, foreign sales amounted to $6,876,429, approximately 43% of the Company’s net sales. In 2014, 23% of the Company’s total sales were to Saudi Arabia and in the prior year, 13% of total sales went to Saudi Arabia. The higher foreign sales in 2014 were the result of higher rubber baler sales.

During fiscal 2014 and fiscal 2013, IBC had sales to more than 300 customers. In fiscal 2014, three customers accounted for 15.4%, 10.2% and 9.4% of total net sales, respectively, while in 2013, three customers accounted for 17.3%, 13.6% and 13.2% of net sales, respectively.

The Company builds only a small quantity of balers for its inventory and generally builds based on firm sales orders. The Company's open sales orders at October 31, 2014 were $8,200,000 and at October 31, 2013 were $7,600,000. The Company generally delivers its orders within four (4) months of the date booked.

-4-

Warranties and Service

IBC typically warranties its products for one year from the date of sale as to materials and six months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at IBC's Jacksonville, Florida, facility, and by on-site service provided by Company personnel who are based in Jacksonville, Florida, or by local service agents who are engaged as needed. Repair services and spare parts sales represented 14.2 % and 14.6% of the Company’s net sales for fiscal 2014 and 2013, respectively.

Competition

The potential market for the Company's balers is nationwide and overseas, but the majority of the Company’s general purpose baler sales are in the United States. The Company competes in these markets with approximately 20 companies, none of which are believed to be dominant, but some of which may have significantly greater sales and financial resources than the Company. The Company is able to compete with these companies due to its reputation in the market place, its ability to service the balers it manufactures and sells, as well as its ability to custom design balers to a customer's particular needs. The Company experiences intense competition with respect to its lower priced or general purpose balers, based upon price, including freight, and based on performance. The Company experiences less competition with respect to its specialized baler equipment, such as synthetic rubber, scrap metal, and textile balers.

Regulation

Machinery, such as the Company's balers, is subject to both federal and state regulation relating to safe design and operation. The Company complies with design requirements and its balers include interlocks to prevent operation while the loading door is open, and also includes required printed safety warnings.

Research and Development

The Company has the broadest line of products in the baler industry and continues to provide its customers with new products and product improvements. The Company invests a minimal amount on general research and development of new products.

Compliance with Environmental Laws

The Company generally believes that it has complied with and is in compliance, with all Federal, State, and Local environmental laws. In November 2014, the Company agreed to a Consent Order with the Florida Department of Environmental Protection to remove solid waste sand blasting material from its property. The Company recorded an accrued liability of $291,000 as of October 31, 2014, for the cost of the removal of this material.

Employees

As of October 31, 2014, the Company employed 68 full-time employees as follows: 5 in management and supervision: 9 in sales and service; 43 in manufacturing; 6 in engineering; and, 5 in administration.

Available Information

The Company is a reporting company, as that term is defined under the Securities Acts, and therefore, files reports, including, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K and other information with the Securities and Exchange Commission (the “Commission”). In addition, the Company will provide, without charge to its stockholders, upon written or oral request by such stockholder, a copy of any information referred to herein that is incorporated by reference except exhibits to such information that are incorporated by reference unless the exhibits are themselves specifically incorporated by reference. All such requests should be directed to William E. Nielsen, at International Baler Corp., 5400 Rio Grande Avenue, Jacksonville, Florida 32254, telephone number (904) 358-3812.

-5-

The Company is an electronic filer. The Commission maintains a web site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the Commission, including all of the Company’s filings with the Commission. The address of such site is (http://www.sec.gov).

The Company’s website is located at http://www.intl-baler.com. Under the “Corporate Information” section of the website, you may access, free of charge, the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Section 16 filings (Form 3, 4 and 5) and any amendments to those reports as reasonably practicable after the Company electronically files such reports with the SEC. The information contained on the Company’s website is not part of this Report or any other report filed with the SEC.

ITEM 2. PROPERTIES

IBC is the owner of the buildings and property located at 5400 Rio Grande Avenue, Jacksonville, Florida. The building contains approximately 62,000 square feet and is situated on eight (8) acres. IBC manufactures all of the Company's products at this location. The property has no mortgage. However, the Company’s primary lender, First Merchants Bank of Muncie, Indiana, has a security interest in the property as part of the collateral for the line of credit which it provides to the Company. See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

ITEM 3. LEGAL PROCEEDINGS

To the knowledge of management, no federal, state or local governmental agency is presently contemplating any proceeding against the Company which would have a result materially adverse to the Company. To the knowledge of management, no director, executive officer or affiliate of the Company or owner of record or beneficially owned interest of more than 5% of the Company’s common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.

On August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was fatally injured in a workplace accident while an employee of the Company. The accident occurred in September 2008. The Plaintiff has demanded $2,500,000 to settle this claim. A motion to dismiss the Complaint was granted without prejudice in January 2012, allowing the plaintiff the ability to file an amended complaint. In July 2014, the Company filed a Motion for Summary Judgment to have the complaint dismissed. On December 1, 2014, the Company and its insurance company agreed to settle this claim for $150,000. The Company will be responsible for $75,000, one-half, the total settlement amount. During the fourth quarter of fiscal 2014, the Company accrued an additional $50,000 for a total accrued liability of $75,000 at October 31, 2014 to reflect its share of the liability for settlement.

On December 26, 2013 the Company was served with a civil action filed by Georgetown Paper Stock of Rockville, Inc. for breach of warranties. In November 2014, a jury returned a verdict in favor of the Plaintiff, Georgetown Paper Stock of Rockville, Inc. for $368,248. The Company was responsible for $277,968 of this amount and its dealer BE Equipment, Inc., was responsible for $90,280. The baler involved in this claim will be returned to the Company. The Company recorded an accrued liability of $285,000 and an asset in transit of $85,000 resulting in net expense of $200,000 in the fourth quarter of fiscal 2014.

In November 2014, the Company agreed to a Consent Order with the Florida Department of Environmental Protection to remove solid waste sand blasting material from its property. The Company recorded an accrued liability of $291,000 as of October 31, 2014, the cost of the removal of this material.

Total legal fees and settlement expenses charged to administration expense during 2014 was approximately $907,000, which was comprised of $50,000 for the settlement of the wrongful death suit, $200,000 for the Georgetown Paper Stock settlement, $291,000 for environmental cleanup and $366,000 of attorney fees.

-6-

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company's stock is presently traded on the OTC Electronic Bulletin Board of NASDAQ under the symbol IBAL. As of October 31, 2014, the number of shareholders of record of the Company's Common Stock was approximately 500, and management believes that there are approximately 800 beneficial owners of the Company’s common stock.

The range of high and low bid quotations for the Company's common stock during the fiscal years ended October 31, 2014 and 2013, are set forth below.

Fiscal Year Ended
	October 31, 2014		High		Low
First Quarter		$	2.00	$	1.28
Second Quarter			2.34		1.67
Third Quarter			2.32		1.42
Fourth Quarter			2.48		1.61
Fiscal Year Ended
	October 31, 2013		High		Low
First Quarter		$	2.50	$	1.90
Second Quarter			2.00		1.52
Third Quarter			1.92		1.50
Fourth Quarter			1.70		1.52

The Company has paid no dividends since its inception. Other than the requirement of the Delaware Corporation law that dividends be paid out of capital surplus only and that the declaration and payment of a dividend not render the Company insolvent, there are no restrictions on the Company's present or future ability to pay dividends.

The payment by the Company of dividends, if any, in the future, rests within the discretion of its Board of Directors and will depend, among other things, upon the Company's earnings, its capital requirements, its financial condition and other relevant factors.

-7-

By reason of the Company's present financial status and its contemplated financial requirements, the Company does not anticipate paying any dividends on its common stock during the foreseeable future, but intends to retain any earnings for future expansion of its business.

Recent Sales of Unregistered Securities

During the past two years ended October 31, 2014, the Company has not sold any unregistered securities.

Purchases of Equity Securities

During the fiscal year ended October 31, 2014, neither the Company, nor anyone on its behalf, repurchased any of the Company securities.

Securities authorized for issuance under equity compensation plans

None.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

This “Management’s Discussion and Analysis” contains forward-looking statements within the meaning of Section 21B of the Securities and Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s present expectations or beliefs concerning future events on certain assumptions which are subject to risks and uncertainties, including, but not limited to, changes in general economic conditions and changing competition which could cause actual results to differ materially from those indicated.

Results of Operations

For the fiscal year ending October 31, 2014, net sales were $19,785,503 compared to $16,082,938 in fiscal 2013, an increase of 23.0%. The increase in net sales was primarily the result of higher shipments of synthetic rubber balers, twenty-two in 2014 versus thirteen in 2013, and higher shipments of auto-tie balers, eleven in 2014 versus eight in 2013.

The Company had net income of $714,419 in fiscal 2014, compared to net income of $683,194 in fiscal 2013, an increase of 4.6%. The higher pre-tax income is the result of the higher shipments of synthetic rubber balers and higher gross profit margins, 21.3% in 2014 compared to 18.9% in fiscal 2013. The higher gross profit was offset by higher administrative expenses, $2,027,640 in 2014 compared to $1,019,347 in 2013. The higher administrative expenses were primarily the result of $359,000 higher legal fees, a $200,000 charge for the Georgetown Paper Stock lawsuit, $50,000 additional accrual for the wrongful death settlement and $107,000 higher directors fees. Also, the Company recorded an administrative expense of $291,000 for the accrued liability for the removal of sand blast material from its property.

Liquidity and Capital Resources

The Company’s working capital at October 31, 2014 was $6,968,085 as compared to $6,108,856 at October 31, 2013. The increase in net working capital was primarily due to the improved operating results in 2014.

Average Days Sales Outstanding (DSO) in fiscal 2014 was 66.0 days as compared to 36.8 days in fiscal 2013. The increase in DSO in fiscal 2014 was primarily the result of a significant ($1,286,000) delayed payment due to a customer’s requirement for an additional electrical panel on conveyors purchased from the Company. This receivable was collected in the first quarter of fiscal 2015. DSO is calculated by dividing the total of the month-end net accounts receivable balances for the period by twelve, and dividing that result by the average day’s sales for the period (period sales ÷ 365).

-8-

The Company has a $1,650,000 line of credit agreement with First Merchants Bank of Muncie, Indiana that was entered into on January 7, 2013. The line of credit allows the Company to borrow at an interest rate equal to the sum of the LIBOR Rate applicable to each interest period plus 2.39%. The line of credit is secured by all assets of the Company and has a term of two years. The credit agreement has been modified to extend the termination date to March 15, 2015. The Company anticipates entering into a new credit agreement with First Merchants Bank on or before March 15, 2015. The line of credit had an outstanding balance of $644,345 at October 31, 2014 and $1,648,649 at October 31, 2013. The Company used the line of credit for inventory requirements primarily for three rubber baler orders with a sales value of over $6,500,000 at the end of fiscal 2013 and the beginning of fiscal 2014.

In fiscal 2014 the Company made additions of $146,593 to its buildings and manufacturing equipment, compared to additions of $227,191 in fiscal 2013. There are no unusual or infrequent events or transactions or significant economic changes which materially affect the amount of reported income. The Company believes that its cash, line of credit, and results of operations are sufficient to fund future operations.

The Company is unaware of any events or uncertainties which are reasonably likely to have a material impact on the Company’s short-term or long-term liquidity or the net sales, or net income. The Company has no known or anticipated significant elements of income or loss that do not arise from the Company’s operations.

Off Balance Sheet Arrangements

The Company has no off balance sheet arrangements.

Inflation

The costs of the Company are subject to the general inflationary trends existing in the general economy. The Company believes that expected pricing for its equipment will be able to include sufficient increases to offset any increase in costs due to inflation.

Critical Accounting Policies and Estimates

This discussion and analysis of financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as related disclosures of contingent assets and liabilities. We evaluate our estimates on an ongoing basis and we base our estimates on historical experience and various other assumptions we deem reasonable to the situation. These estimates and assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Changes in our estimates could materially impact our results of operations and financial condition in any particular period.

We consider our critical accounting policies and estimates to be as follows based on the high degree of judgment or complexity in their application:

Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses on trade receivables resulting from the inability to collect outstanding accounts due from its customers. The allowances include specific amounts for disputed, troubled and aged accounts using current knowledge of particular customer credit worthiness and general allowances based on historical collection experience, current economic trends, credit worthiness of customers and changes in customer payment terms.

-9-

Management believes the estimates used in determining the allowance for doubtful accounts are critical accounting estimates because changes in credit worthiness and economic conditions, including bankruptcies, could have a material impact on operating results.

The Company reviews its allowance for doubtful accounts monthly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Inventory Allowance

The Company analyzes inventory for excess or slow moving inventory. The Company reviews inventory for obsolescence on a regular basis. The allowance is estimated based on factors such as historical trends, current market conditions and management’s assessment of when the inventory would likely be sold and the quantities and prices at which the inventory would likely be sold in the normal course of business. Changes in product specifications, customer product preferences or the loss of a customer could result in unanticipated impairment in net realizable value that may have a material impact on cost of goods sold, gross margin and net income. Obsolete or damaged inventory is disposed of or written down to net realizable value on a quarterly basis.

Additional adjustments, if necessary, are made based on management’s specific review of inventory on-hand. Management believes the estimates used in determining the allowance for excess and slow moving inventory are critical accounting estimates as changes in the estimates could have a material impact on net income and the estimates involve a high degree of judgment.

Warranty Allowance

The Company warranties its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers a service plan for other required repairs and maintenance. The Company maintains an accrued liability for expected warranty claims. The warranty allowance is based on historical warranty costs, quantity and type of balers currently under warranty, and known potential warranty issues.

Management believes the estimates used in determining the allowance for warranties are critical accounting estimates because changes in the estimate could have a material impact on operating results.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. There were no valuation allowances on the deferred tax assets at October 31, 2014 and 2013 as management believes it will fully utilize them. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. There were no accruals for uncertain tax positions at October 31, 2014 or 2013.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and supplementary data commence on page F-1.

-10-

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by the Company in reports it files or submits under the Securities Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. As of the end of the period covered by this report, and under the supervision and with the participation of management, including its Chief Executive Officer and Chief Financial Officer, management evaluated the effectiveness of the design and operation of these disclosure controls and procedures.

Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

As part of a continuing effort to improve the Company’s business processes management is evaluating its internal controls and may update certain controls to accommodate any modifications to its business processes or accounting procedures.

Internal Control over Financial Reporting

(a) Management’s Annual Report on Internal Control over Financial Reporting

The Company’s management is responsible for establishing and maintaining effective internal controls over financial reporting, as such terms is defined in Exchange Act Rules 13a-15(f) and 15d-15(f).

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s financial statements.

-11-

Management, with the participation of the Company’s principal executive and principal financial officers, assessed the effectiveness of the Company’s internal control over financial reporting as of October 31, 2014. This assessment was performed using the criteria established under the Internal Control-Integrated Framework established by the Committee of Sponsoring Organization of the Treadway Commission (“COSO”).

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations, including the possibility of human error or circumvention or overriding of internal control. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation and reporting and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on the assessment performed using the criteria established by COSO, management has concluded that the Company maintained effective internal control over financial reporting as of and for the year ended October 31, 2014.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

(b) Changes in Internal Control over Financial Reporting

During the year ended October 31, 2014, there have not been any changes in the Company’s internal controls that have materially affected or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

-12-

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Identification of Directors and Officers

The current executive officers and directors of the Company are as follows:

NAME	Age	Positions Held	Date of Initial Election or Designation
Roger Griffin	53	Director	4/21/2008
5400 Rio Grande Ave.		President &
Jacksonville, FL 32254		Chief Executive Officer
Lael E. Boren	46	Director	4/15/2011
1909 S. Main Street
Upland, IN 46989
Leland E. Boren	91	Director	3/9/2005
1909 S. Main Street
Upland, IN 46989
Ronald L. McDaniel	75	Director	5/16/2006
Western-Cullen-Hayes, Inc.		Chairman of the Board
2700 West 36th Place
Chicago, IL 60632
William E. Nielsen	67	Director	11/20/1997
5400 Rio Grande Ave.		Chief Financial Officer	6/14/1994
Jacksonville, FL 32254
Matthew M. Price	47	Director	5/11/2007
Bingham Greenbaum Doll, LLP
2700 Market Tower
10 West Market Street
Indianapolis, IN 46204
John J. Martorana	64	Director	1/5/2009
5148 Hanover Lane
Lakeland, FL 33817
Martha R. Songer	58	Director	1/30/2012
1909 S. Main Street
Upland, IN  46989

The Board of Directors is divided into three (3) classes of directors ("Class I", "Class II", and "Class III"), with each class having as nearly the same number of directors as practicable. Stockholders elect such class of directors, Class I, Class II, or Class III, as the case may be, to succeed such class directors whose terms are expiring, for a three (3) year term, and such class of directors shall serve until the successors are elected and qualify. Officers of the Company serve at the pleasure of the Board of Directors.

-13-

During fiscal 2014 the Board of Directors met three times.

There are no family relationships between executive officers or directors of the Company except that Lael E. Boren is the son of Leland E. Boren.

Except as noted above, there is no understanding or arrangement between any director or any other persons pursuant to which such individual was or is to be selected as a director or nominee of the Company.

Background of Executive Officers and Directors

The following is a brief account of the experience, during the past five years, of each director and executive officer of the Company:

Roger Griffin joined the Company in February 2008 as President and Chief Executive Officer. Previously, Mr. Griffin was Vice President of Operations at Schaefer Interstate Railing in Salisbury, NC. Prior to that Mr. Griffin spent several years with Metaldyne which acquired the Whitsett, NC plant of Dana Corporation and before that he spent eleven years in management with Dana Corporation at their Whitsett, NC and Jonesboro, AR facilities. Mr. Griffin received a BS in Business Administration from American Intercontinental University in 2009.

Leland E. Boren is the Chairman, Chief Executive Officer and President of Avis Industrial Corporation located in Upland, Indiana. He is also President and CEO of PHD, Inc., Ft. Wayne, Indiana and has held this position since 2010. From 1945 through 1971, Mr. Boren was employed by The Pierce Company (formerly The Pierce Governor Company) in various capacities. He became President of The Pierce Governor Company in 1958. The Pierce Company merged with Avis Industrial Corporation in 1971 and Mr. Boren became President of Avis at that time.

Ronald L. McDaniel has been president of Western-Cullen-Hayes, Inc. since 1980. He was Vice President and General Manager of Western-Cullen-Hayes from 1975 to 1980. From 1957 to 1975, Mr. McDaniel worked for Western-Cullen-Hayes and Burro Crane, an affiliated company, in various capacities including division controller. Mr. McDaniel has a bachelor’s degree from the University of Dayton and an MBA from the University of Chicago.

William E. Nielsen prior to joining the Company, acted as a financial consultant to Fletcher Barnum Inc., a privately held manufacturing concern, from October 1993 through June 1994. From 1980 through July 1993, he was the Vice President, Administration and Finance at Unison Industries, Inc. Mr. Nielsen received a BBA in Finance and an M.B.A. at Western Illinois University in 1969 and 1970, respectively.

Matthew M. Price is an attorney with the law firm of Bingham Greenebaum Doll LLP since 1993. Mr. Price received a BA degree from Wabash Collage in 1990 and a J.D. from Indiana University School of Law in 1993. Mr. Price is a member of the Indiana State Bar Association and the Indianapolis Bar Association. Mr. Price is a member of his law firm’s corporate transactions practice group, and his business practice focuses on project financing, government and regulatory compliance for private and public companies, including small and large manufacturers.

John J. Martorana has been a consultant to several divisions of Wastequip, Inc. since 2007. Mr. Martorana was the President of Wastequip of Florida from 1994 to 2007 after joining that company in 1991 as Vice President. From 1984 to 1991 he was responsible for sales and steel purchasing for Industrial Refuse Sales Inc., a family owned business which was sold to Wastequip, Inc. prior to joining Industrial Refuse Sales Mr. Martorana worked in the steel industry. He received a BS Degree in Education from Butler University in 1972.

Lael E. Boren has served as general manager and president of various organizations including Badger Equipment Company and The Pierce Company. Prior to that, Mr. Boren owned an electronics business in Muncie and Marion, Indiana. He received a Bachelor’s of General Studies from Ball State University in 2014. Mr. Boren is the son of Leland E. Boren, also a director of the company.

-14-

Martha R. Songer is Vice President and Assistant to the President at Avis Industrial Corporation in Upland, Indiana and has been in this position since 2012. Prior to that Ms. Songer was Alumni Director at Taylor University also in Upland, Indiana. Ms. Songer received a Bachelor of Science from Taylor University in 1978 and a Master of Science in Management in 2002 from Indiana Wesleyan University.

Involvement in Certain Legal Proceedings

To the knowledge of the Company’s management, during the past five years, no director, person nominated to become a director or an executive officer of the Company:

(1) Filed a petition under the federal bankruptcy laws or any state insolvency law, nor had a receiver, fiscal agent or similar officer appointed by a court for the business or property of such person, or any partnership in which he or she was a general partner at or within two years before the time of such filing, or any corporation or business association of which he or she was an executive officer at or within two years before the time of such filing;

(2) Was convicted in a criminal proceeding or named subject of pending criminal proceeding (excluding traffic violations and other minor offenses);

(3) Was the subject of any order, judgment, or decree not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from or otherwise limiting his or her involvement in any type of business, securities, or banking activities;

(4) Was found by a court of competent jurisdiction in a civil action by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated any Federal or State Securities laws, and the judgment in such civil action of finding by the Securities and Exchange Commission has not been subsequently reversed, suspended, or vacated.

Section 16 (a) Beneficial Ownership Reporting Compliance

In fiscal 2014, none of the Company’s officers, directors, and beneficial owners of more than ten percent of the company’s common stock were delinquent in filing of any of their Form 3, 4, and 5 reports.

Code of Ethics

The Company has adopted a code of business conduct and ethics for directors, officers (including the Company’s principal executive officer, principal financial officer and controller) and employees, known as the Standards of Business Conduct. The Standards of Business Conduct are available on the Company’s website at http://www.intl-baler.com. The Company intends to disclose any Amendments to its Code of Ethics and any waiver from a provision of the Code of Ethics granted to the Company’s Chief Executive Officer, Chief Financial Officer, or other persons performing similar functions, on the Company’s website within five business days following such amendment or waiver. Stockholders may request a free copy of the Standards of Business Conduct from:

International Baler Corporation

Attention: William E. Nielsen

5400 Rio Grande Avenue

Jacksonville, Florida 32254

(904)358-3812

Committees

The Company’s Board of Directors consists of eight members, three of whom the Board has determined are independent, Ronald McDaniel, Matthew Price and John Martorana. The Company has sought and continues to seek appropriate individuals to serve on the Board of Directors who meet the requirements necessary to qualify as independent directors to serve on the Company’s Board of Directors.

-15-

Ronald McDaniel, Matthew Price and Lael Boren are members of Board’s Audit Committee. Mr. McDaniel serves as the audit committee’s “financial expert” as that term is defined by applicable Securities and Exchange Commission (“SEC”) regulations. Mr. McDaniel’s qualifications for this position are based upon his educational background and work experience as set forth above. The Company’s Audit Committee Charter is posted on the Company’s website.

The Company does not have a standing nominating committee or a nominating committee charter. However, the full Board of Directors performs the functions of a nominating committee. The Board identifies the candidates for Board membership. In identifying candidates, the Board will seek recommendations from existing Board members, executive officers of the Company and all persons who own more than five percent (5%) of the Company’s outstanding stock. The Board has no stated specific minimum qualifications that must be met by a candidate for a position on the Board of Directors. The Board will consider a variety of factors in evaluating the qualifications of a candidate including the candidate’s professional experience, educational background, knowledge of the Company’s business and personal qualities. The Board may, when appropriate, retain an executive search firm and other advisors to assist it in identifying candidates for the Board. In addition, the Board will consider any candidates that may have been recommended by any of the Company’s stockholders who have made those recommendations in accordance with the procedures described below under the heading “Stockholders’ Proposals.” In addition, such stockholder recommendations must be accompanied by (1) such information about each prospective director nominee as would have been required to be included in a proxy statement filed pursuant to the rules of the Securities and Exchange Commission had the prospective director nominee been nominated by the Board of Directors and (2) that the prospective director nominee has consented to be named, if nominated, as a nominee and, if elected, to serve as a director.

ITEM 11. EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

The objective of the Company’s compensation program is to attract and retain qualified and talented professional individuals to perform the duties of the Company’s executive offices. The Company’s compensation program is designed to fairly reward the Company’s executive officers for their overall performance in the management of the affairs of the Company. The measurement of successful performance has significant elements of subjective judgment in view of the lack of any directly comparable single element or group of elements to which the Company and its performance may be readily compared from time to time.

The elements of compensation of the Company’s compensation programs include salary, health insurance, stock options, and in certain circumstances the award of a cash bonus. As of the present time, the Company compensation plan does not include any defined benefit retirement plan; any social club memberships or dues or any payments for housing, cars, boats, or other property of any kind to any person. The Company has not entered into any employment contracts with its executive officers nor any contracts for compensation to any person in the event of a change in control of the Company. The Company pays no other elements of compensation to its executive officers. The relatively small size of the Company in comparison to other entities presents the Company with additional risks in meeting its objectives of attracting and retaining qualified and talented professional individuals.

The salary component of the compensation is most important and the Company attempts to be competitive with what it believes to be the compensation of other companies of similar size and scope of operations. To date the Company has not engaged the services of a compensation review consultant or service in view of the cost of such services compared to the size and revenues of the Company. The award of a bonus upon review of Company performance provides an additional incentive. The Company determines the amount for each element to pay by reviewing annually the compensation levels of the Company’s executive officers and determining from the performance of the Company during that time since the last review what an appropriate compensation level may be during the upcoming annual period. The Company has no existing formula for determination of the salary, stock options, or bonus elements of compensation.

-16-

Executive Officer Compensation

The following table sets forth a summary of all compensation awarded to, earned by or paid to, the Company's Chief Executive Officer, Chief Financial Officer and each of the Company's executive officers whose compensation exceeded $100,000 per annum for services rendered in all capacities to the Company and its subsidiaries during fiscal years ended October 31, 2014 and 2013:

SUMMARY COMPENSATION TABLE
Annual Compensation					Long Term Awards
NAME AND PRINCIPAL POSITION	YEAR	SALARY ($)	BONUS ($)	OTHER ANNAL COMPENSATION ($)	NUMBER OF OPTIONS	ALL OTHER COMPENSATION	TOTAL COMPENSATION
Roger Griffin	2014	130,000	100,000	-0-	-0-	-0-	230,000
President & CEO	2013	130,000	100,000	-0-	-0-	-0-	230,000
William E. Nielsen	2014	134,000	35,000	-0-	-0-	-0-	169,000
Chief Financial Officer	2013	134,000	35,000	-0-	-0-	-0-	169,000

Outstanding Equity Awards at Fiscal Year-End
Option Awards						Stock Awards
Name	Number of Securities Underlying Unexercised Options (#) Exercisable	Number of Securities Underlying Unexercised Options (#) Unexercisable	Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)	Option Exercise Price ($)	Option Expiration Date	Number of Shares or Units of Stock That Have Not Vested (#)	Market Value of Shares or Units of Stock That Have Not Vested (#)	Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)	Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#)
(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)	(i)	(j)
None

None of the Company’s other Executive Officers earned compensation in fiscal 2014 and 2013 in excess of $100,000 for services rendered to the Company in any capacity.

Option Grants and Exercises in Last Fiscal Year

No options were granted during fiscal 2014 to the Company's Chief Executive Officer or any of the Company's most highly compensated executive officers whose compensation exceeded $100,000 for fiscal 2014.

-17-

Compensation of Directors

The Board of Directors of the Company compensated non-employee directors $3,000 per month, together with direct out-of-pocket expenses incurred to attend meetings. In December 2013 the Board of Directors resolved to increase the compensation of non-employee directors from $1,500 per month to $3,000 per month.

Members of the Board of Directors may also be requested to perform consulting or other professional services for the Company from time to time. The Board of Directors has reserved to itself the right to review all directors' claims for compensation on an ad hoc basis.

Directors who are on the Company’s Audit, Compensation, and Nominating Committees do not receive any consulting, advisory or compensatory fees from the Company. However, such Board members may receive fees from the Company for their services on those committees.

Director Compensation for Fiscal 2014
Name	Fees Earned or Paid in Cash	Stock Awards	Option Awards	Non Equity Incentive Plan and Compensation	Change in Pension Value and Nonqualified Deferred Compensation Earnings	All Other Compensation	Total
	($)	($)	($)	($)	($)	($)	($)
Ronald L. McDaniel	34,500	-0-	-0-	-0-	-0-	-0-	34,500
Matthew M. Price	34,500	-0-	-0-	-0-	-0-	-0-	34,500
Lael E. Boren	34,500	-0-	-0-	-0-	-0-	-0-	34,500
Leland Boren	34,500	-0-	-0-	-0-	-0-	-0-	34,500
John J. Martorana	34,500	-0-	-0-	-0-	-0-	-0-	34,500
Martha R. Songer	34,500	-0-	-0-	-0-	-0-	-0-	34,500

Employment Contracts

The Company does not have employment contracts with the Chief Executive Officer or any other member of management.

Compensation Committee Interlocks and Insider Participation

There are no interlocking relationships between any member of the Company's Compensation Committee and any member of the compensation committee of any other company, nor has any such interlocking relationship existed in the past. No member of the Compensation Committee is or was formerly an officer or an employee of the Company.

-18-

Compensation Committee Report

The Compensation Committee reviews with management the Compensation Discussion & Analysis section of the Company’s 2013 Form 10-K, Item 11, and Proxy Statement. Based on its review and discussions with management the Compensation Committee recommends to the Board of Directors that the Compensation Discussion and Analysis be included in the Company’s Proxy Statement for 2014 and in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2014.

The Compensation Committee

Ronald L. McDaniel

John J. Martorana

Lael E. Boren

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth certain information with respect to the ownership of the Company's Common Stock as of December 31, 2014 by (i) those persons known by the Company to be the beneficial owners of more than 5% of the total number of outstanding shares of Common Stock, (ii) each director and executive officer, and (iii) all officers and directors as a group as of December 31, 2014 with these computations based on 5,183,895 shares of common stock being outstanding at that time.

-19-

NAME AND ADDRESS OF BENEFICIAL OWNER	TITLE HELD	AMOUNT OF BENEFICIAL OWNERSHIP 1	APPROXIMATE PERCENT OF CLASS
Roger Griffin	President & CEO	18,600	0.30%
5400 Rio Grande Ave.
Jacksonville, FL 32254
Leland E. Boren	Director	2,673,614 2	51.60%
1909 S. Main Street
Upland, IN 46989
John Martorana	Director	19,995	0.40%
5148 Hanover Lane
Lakeland, FL  33817
Ronald L. McDaniel	Director	None	-0-
Western-Cullen-Hayes, Inc.
2700 W. 36th Place
Chicago, IL 60632
William E. Nielsen	Director	250,000	4.80%
5400 Rio Grande Avenue	Chief Financial
Jacksonville, FL 32254	Officer
Matthew M. Price	Director	None	-0-
Bingham Greenbaum Doll, LLP
2700 Market Tower
10 West Market Street
Indianapolis, IN 46204
Alexander C. Toppan	Stockholder	653,128 3	12.60%
40 Spectacle Ridge Road
South Kent, CT 06785
Lael E. Boren	Director	2,000	0.00%
1909 S Main Street
Upland, IN 46989
Martha R. Songer	Director	2,000	0.00%
1909 S. Main Street
Upland, IN  46989
International Baler Corporation	Stockholder	119,339 4	2.30%
Profit Sharing Trust
5400 Rio Grande Avenue
Jacksonville, FL 32254
All Officers and Directors		3,085,548 5	59.50%
as a Group (4 persons)
________________
1  Unless otherwise stated, all shares of common stock are directly held with sole voting power and dispositive power.
2  Consists of 2,633,896 shares held directly and 39,718 shares owned by Avis Industrial Corporation.
3  Shares are held in joint tenancy with his wife, Mary Anne T. Toppan.
4  Employees’ Profit Sharing Trust of which William Nielsen is Trustee.
5  Consists of 2,966,209 shares held directly and 119,339 shares held by International Baler Corporation Employee Profit Sharing Trust.

-20-

Changes In Control

To the knowledge of the Company’s management, there are no present arrangements or pledges of the Company’s securities which may result in a change in control of the Company.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Transactions with Management and Others

Leland E. Boren, shareholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Boren controls 51.6% of the outstanding shares of the Company. Avis owns 100% of The American Baler Company, a competitor of the Company. On January 1, 2014, Avis acquired The Harris Waste Management Group, Inc., also a competitor of the Company. On July 31, 2014 Harris acquired the assets of IPS Balers, Inc. in Baxley, Georgia, another competitor of the Company. These baler companies operate completely independent of each other. The Company had no equipment sales to, or purchases from these companies in the fiscal years ending October 31, 2014 and 2013.

Indebtedness of Management

No officer, director or security holder known to the Company to own of record or beneficially more than 5% of the Company's common stock or any member of the immediate family of any of the foregoing persons is indebted to the Company.

Parent of the Issuer

The Company has no parent.

Independence of Directors

Rule 4350 (c) (1) of The Nasdaq Stock Market rules requires that a majority of the members of the Company’s Board of Directors be independent in that they are not officers or employees of the Company and are free of any relationship that would interfere with the exercise of their independent judgment.

The Board of Directors has determined that three of the Company’s seven Directors, Ronald L. McDaniel, Matthew M. Price and John Martorana are independent as defined by the listing standards of the Nasdaq Stock Market Rules, Section 10A(m)(3) of the Securities Exchange Act of 1934 and the rules and regulations of the Securities and Exchange Commission.

However, Rule 4350(c) (5) provides an exemption from the requirement that a majority of the Company’s Directors be independent if the Company is considered a “controlled company”. A controlled company is defined as a company of which more than 50% of the voting power is held by an individual, a group, the Company’s independent registered public accounting firm, or another company. As Leland E. Boren, director, owns more than 50% of the Company’s common stock, the Company is considered a “controlled company” under the applicable rules of The Nasdaq Stock Market and as such is exempt from certain of the corporate governance rules of The Nasdaq Stock Market, such as the requirement that the board of directors consist of a majority of independent directors.

-21-

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table presents the fees for professional services rendered by The GriggsGroup CPAs for

the audit of the Company’s annual financial statements for the years ended October 31, 2014 and 2013:

Fee Category		2014		2013
Audit Fees	$	$55,500	$	$54,500
Audit-Related Fees		0		0
Tax Fees		10,000		8,500
All Other Fees		0		0
Total Fees	$	$65,500	$	$63,000

Audit fees include fees related to the services rendered in connection with the annual audit of the Company’s financial statements, the quarterly reviews of the Company’s quarterly reports on Form 10-Q and the reviews of and other services related to registration statements and other offering memoranda.

Audit-related fees are for assurance and related services by the independent registered public accounting firm that are reasonably related to the performance of the audit or review of the Company’s financial statements.

Tax Fees include (i) tax compliance, (ii) tax advice, (iii) tax planning and (iv) tax reporting.

All Other Fees includes fees for all other services provided by the principal accountants not covered in the other categories.

All of the 2014 services described above were approved by the Audit Committee in accordance with the SEC rule that requires audit committee pre-approval of audit and non-audit services provided by the Company’s independent registered public accounting firm. The Audit Committee has considered whether the provisions of such services, including non-audit services, by The GriggsGroup CPAs is compatible with maintaining The GriggsGroup’s CPAs’ independence and has concluded that it is.

-22-

ITEM 15. EXHIBITS

The Following Documents are filed as Part of this Report

1. Financial Statements:

Reports of Independent Registered Public Accounting Firms

Balance Sheets

Statements of Operations

Statements of Stockholders' Equity

Statements of Cash Flows

Notes to Financial Statements

2. Exhibits

Exhibit Number	Description
2.1	Agreement of Merger between International Baler Corporation and IBC Merger Corporation dated June 24, 1997 (Incorporated by reference to Exhibit 10.39 to Company’s Current Report on Form 8-K, Date of Report June 27, 1997[“Report on Form 8-K June 27, 1997”]).
2.2	Certificate of Merger of International Baler Corporation into IBC Merger Corporation (Incorporated by reference to Exhibit 10.39.1 to Report on Form 8-K June 27, 1997).
2.3	Certificate of Merger merging Consolidated Baling Machine Company, Inc. and Florida Waste Systems, Inc. Into International Baler Corporation filed July 30, 2004.
3.1	Articles of Incorporation and by-laws of Waste Technology Corp. and amendments (Incorporated by reference to the Company’s Registration Statement on Form S-18 filed in April, 1985, Registration No. 2-97045[the “Statement on Form S-18"])
3.2	Certificate of Incorporation of International Baler Corporation f/k/a National Compactor & Technology Systems, Inc. and all amendments thereto (Incorporated by reference to Exhibit 3.3 to Form 8 Amendment No.1 to the Company’s Annual Report on Form 10-K for the year ended October 31, 1989[“Amendment No. 1 to 1989 Form 10-K”]).
	By-laws of International Baler Corporation (Incorporated by reference to Exhibit 3.4 to Amendment No. 1 to 1989 Form 10-K).
3.3
3.4	Certificate of Incorporation of Consolidated Baling Machine Co., Inc. f/k/a Solid Waste Recovery Test Center, Inc. and all amendments thereto (Incorporated by reference to Exhibit 3.5 to Amendment No. 1 to 1989 Form 10-K).
3.5	By-laws of Consolidated Baling Machine Co., Inc. (Incorporated by reference to Exhibit 3.6 to Amendment No. 1 to 1989 Form 10-K).
3.7	Certificate of Amendment to Certificate of Incorporation of Waste Technology Corp. Filed on November 4, 1991(Incorporated by reference to Exhibit 3.1.1 to Company’s Annual Report on Form 10-K for the year ended October 31, 1991[the “1991 Form 10-K”]
3.8	Certificate of Amendment to Certificate of Incorporation of Waste Technology Corp. Filed on November 21 1991(Incorporated by reference to Exhibit 3.1.2 to Company’s 1991 Form 10-K).

-23-

Exhibit Number	Description
3.9	Revised and restated by-laws of Waste Technology Corp. (Incorporated by reference to Exhibit 3.2 to Company’s 1991 Form 10-K).
3.1	Amendment to revised and restated by-laws of Waste Technology Corp. (Incorporated by reference to Exhibit 3.2.1 to Company’s 1991 Form 10-K).
3.11	Certificate of Incorporation of Waste Tech Real Estate Corp. (Incorporated by reference to Exhibit 3.7 to Company’s Annual Report on Form 10-K for year ended October 31, 1990).
4.1	1995 Stock Option Plan (Incorporated by reference to Exhibit 4.1 to Annual Report on Form 10-K for the year ended October 31, 1995).
10.1	Agreement between the Company and International Baler Corp. dated September 8, 1986, relating to acquisition of assets and stock (Incorporated by reference to Exhibit 10.1 to Statement on Form S-18).
10.2	Agreement dated February 3, 1987, between the Company and N. J. Cavagnaro & Sons and Machine Corp., Nicholas J. Cavagnaro Jr., George L. Cavagnaro, and Pauline L. Cavagnaro together with the exhibits annexed thereto for the acquisition of N. J. Cavagnaro & Sons Machine Corp. (Incorporated by reference to Exhibit 10.2 to Company’s Annual Report on Form 10-K for the year ended October 31, 1987 [the “1987 Form 10-K”]).
10.3	Waste Technology Corp. Profit Sharing Plan including Agreement of Trust (Incorporated by reference to Exhibit 10.7 to Report on Form 8-K June 1, 1989).
	Form of Deferred Compensation Agreement for Ted C. Flood (Incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10K for the year ended October 31, 1991).
10.4
10.5	Agreement between International Baler Corporation and Ted C. Flood dated as December 29, 1995 (Incorporated by reference to Exhibit 10.38 to the Company’s Annual report on Form 10-KSB for the year ended October 31, 1996 [the “1996 Form 10-KSB”]).
10.6	Promissory Note made by Ted C. Flood to the order of International Baler Corporation dated December 29, 1995 (Incorporated by reference to Exhibit 10.38.1 to the 1996 Form 10-KSB).
10.7	Promissory Note made by Ted C. Flood to the order of Waste Technology   Corp. dated April 5, 1996 (Incorporated by reference to Exhibit 10.38.2 to the 1996 Form 10-KSB).
10.8	Promissory Note made by Ted C. Flood to the order of Waste Technology Corp. dated October 5, 1996(Incorporated by reference to Exhibit 10.38.3 to the 1996 Form 10-KSB).
14	Code of Ethics (Incorporated by reference to Exhibit 14 to the Company’s Annual Report on Form 10-KSB for the year ended October 31, 2003).
31*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
32*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

*The exhibits are filed with, or incorporated by reference into this report.

-24-

SIGNATURES

In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

INTERNATIONAL BALER CORPORATION

(Registrant)

By: _/s/ D. Roger Griffin __

Chief Executive Officer

Dated: January 29, 2015

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in their capacities and on the dates indicated.

Signature	Title	Date
/s/ Ronald L. McDaniel	Director	January 29, 2015
Ronald L. McDaniel	Chairman of the Board
/s/ D Roger Griffin	Director	January 29, 2015
D. Roger Griffin	President and Chief
	Executive Officer
/s/ Lael Boren	Director	January 29, 2015
Lael E. Boren
/s/ Leland E. Boren	Director	January 29, 2015
Leland E. Boren
/s/ William E. Nielsen	Director	January 29, 2015
William E. Nielsen	Chief Financial Officer
/s/ Matthew M. Price	Director	January 29, 2015
Matthew M. Price
/s/ John J. Martorana	Director	January 29, 2015
John J. Martorana
/s/ Martha R. Songer	Director	January 29, 2015
Martha R. Songer

-25-

INTERNATIONAL BALER CORPORATION

FINANCIAL STATEMENTS

OCTOBER 31, 2014 AND 2013.

(With Report of Independent Registered Public Accounting Firm Thereon)

-26-

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

International Baler Corporation

We have audited the accompanying balance sheets of International Baler Corporation as of October 31, 2014 and 2013 and the related statements of income, stockholders’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of International Baler Corporation as of October 31, 2014 and 2013 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

/s/ The GriggsGroup CPAs

Ponte Vedra Beach, Florida

January 29, 2015

-27-

INTERNATIONAL BALER CORPORATION
BALANCE SHEETS
		October 31, 2014			October 31, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	2,803,698		$	1,877,256
Accounts receivable, net of allowance for doubtful accounts
of $29,412 at October 31, 2014 and $45,764 at October 31, 2013		3,732,637			2,466,887
Inventories		4,788,881			5,960,365
Prepaid expense and other current assets		183,725			98,792
Deferred income taxes		217,676			245,431
Total current assets		11,726,617			10,648,731
Property, plant and equipment, at cost:		3,243,153			3,096,560
Less: accumulated depreciation		2,115,740			1,972,631
Net property, plant and equipment		1,127,413			1,123,929
Other assets		1,256			1,256
TOTAL ASSETS	$	12,855,286		$	11,773,916
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving promissory note	$	644,345		$	1,648,649
Notes payable-current portion		9,879			—
Accounts payable		923,391			1,439,777
Accrued liabilities		1,512,985			659,096
Customer deposits		1,667,932			677,954
Total current liabilities		4,758,532			4,425,476
Deferred income taxes		171,480			165,808
Notes payable-long term		28,223			—
Total liabilities		4,958,235			4,591,284
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, par value $.0001,
10,000,000 shares authorized, none issued		—			—
Common stock, par value $.01,
25,000,000 shares authorized;  6,429,875 shares
issued at October 31, 2014 and October 31, 2013		64,299			64,299
Additional paid-in capital		6,419,687			6,419,687
Retained earnings		2,094,475			1,380,056
		8,578,461			7,864,042
Less:  Treasury stock, 1,245,980 shares
at October 31, 2014 and October 31, 2013, at cost		(681,410	)		(681,410	)
Total stockholders' equity		7,897,051			7,182,632
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	12,855,286		$	11,773,916
See accompanying notes to financial statements.

-28-

INTERNATIONAL BALER CORPORATION
STATEMENTS OF INCOME
YEARS ENDED OCTOBER 31, 2014 AND 2013
		2014			2013
Net sales:
Equipment	$	16,969,452		$	13,728,599
Parts and service		2,816,051			2,354,339
Total net sales		19,785,503			16,082,938
Cost of sales		15,577,846			13,045,001
Gross profit		4,207,657			3,037,937
Operating expense:
Selling expense		999,018			971,387
Administrative expense		2,027,640			1,019,347
Total operating expense		3,026,658			1,990,734
Operating income		1,180,999			1,047,203
Other income (expense):
Interest income		6,706			959
Interest expense		(35,816	)		(12,671	)
Total other income  (expense)		(29,110	)		(11,712	)
Income before income taxes		1,151,889			1,035,491
Income tax provision		437,470			352,297
Net income	$	714,419		$	683,194
Income per share, basic and diluted	$	0.14		$	0.13
Weighted average number of shares outstanding		5,183,895			5,183,895
See accompanying notes to financial statements.

-29-

INTERNATIONAL BALER CORPORATION
STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED OCTOBER 31, 2014 AND 2013
	Common Stock							Treasury Stock
	NUMBER				ADDITIONAL		RETAINED	NUMBER					TOTAL
	OF SHARES		PAR		PAID-IN		EARNINGS	OF					STOCKHOLDERS'
	ISSUED		VALUE		CAPITAL		(DEFICIT)	SHARES		COST			EQUITY
Balance at October 31, 2012	6,429,875	$	64,299	$	6,419,687	$	696,862	1,245,980	$	(681,410	)	$	6,499,438
Net Income	—		—		—		683,194	—		—			683,194
Balance at October 31, 2013	6,429,875		64,299		6,419,687		1,380,056	1,245,980		(681,410	)		7,182,632
Net Income	—		—		—		714,419	—		—			714,419
Balance at October 31, 2014	6,429,875	$	64,299	$	6,419,687	$	2,094,475	1,245,980	$	(681,410	)	$	7,897,051
See accompanying notes to financial statements.

-30-

INTERNATIONAL BALER CORPORATION
STATEMENTS OF CASH FLOWS
YEARS ENDED OCTOBER 31, 2014 AND 2013
		2014			2013
Cash flow from operating activities:
Net income	$	714,419		$	683,194
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization		143,109			133,221
Provision for doubtful accounts		(16,352	)		(20,000	)
Deferred income tax		33,427			71,878
Changes in operating assets and liabilities:
Accounts receivable		(1,249,398	)		(1,011,094	)
Inventories		1,171,484			(1,764,814	)
Prepaid expenses and other assets		(84,933	)		26,128
Accounts payable		(516,386	)		733,522
Accrued liabilities and deferred taxes		853,889			185,572
Customer deposits		989,978			(307,008	)
Net cash provided by (used in) operating activities		2,039,237			(1,269,401	)
Cash flows from investing activities:
Proceeds from notes receivable from former Director		—			3,673
Purchase of property and equipment		(105,338	)		(224,805	)
Net cash used in investing activities		(105,338	)		(221,132	)
Cash flows from financing activities
Payments on notes payable		(3,153	)		—
Advances from revolving promissory note		400,000			1,648,649
Payments on revolving promissory note		(1,404,304	)		—
Net cash (used in) provided by financing activities		(1,007,457	)		1,648,649
Net increase in cash and cash equivalents		926,442			158,116
Cash and cash equivalents at beginning of period		1,877,256			1,719,140
Cash and cash equivalents at end of period	$	2,803,698		$	1,877,256
Supplemental disclosure of cash flow information:
Cash paid during period for:
Interest	$	35,816		$	9,195
Income taxes		572,729			—
Supplemental noncash investing activities:
Property, plant and equipment purchases:
Purchase of property, plant and equipment, total	$	146,593		$	—
Vehicle purchased under note payable		41,255			—
Cash paid for property, plant and equipment	$	105,338		$	0
See accompanying notes to financial statements.

-31-

(1) Nature of Business

International Baler Corporation (the “Company”) is a manufacturer of baling equipment which utilizes technical, hydraulic and electrical mechanisms to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models to meet specific customer requirements.

The Company’s customers include recycling facilities, paper mills, textile mills, and the companies which generate the materials for baling and recycling.

(2) Summary of Significant Accounting Policies

(a) Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates and assumptions include allowances for doubtful accounts, valuation of deferred tax assets, valuation of inventory, and estimates for warranty claims. Actual results could differ from those estimates.

(b) Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, bank demand accounts and money market accounts having original maturities of less than three months.

(c) Accounts Receivable and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly including the analysis of historical trends, customer credit worthiness and the aging of receivables. In addition, past due balances are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

(d) Inventories

Inventories are stated at the lower of cost or market. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. The Company reviews inventory for obsolescence on a regular basis.

(e) Property, Plant, and Equipment

Property, plant and equipment are stated at cost net of accumulated depreciation. The cost of property, plant, and equipment is depreciated over the estimated useful lives of the related assets. Depreciation is computed primarily using the straight-line method over the estimated lives of 5-20 years for machinery and equipment and 31-40 years for buildings.

-32-

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell, and depreciation ceases.

(f) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses.

(g) Revenue Recognition

The Company recognizes revenue when finished products and/or parts are shipped and the customer takes ownership and assumes the risk of loss. Revenue from installation services is recognized on completion of the service. The Company recognizes revenue from repair services in the period in which the service is provided.

(h) Warranties and Service

The Company typically warrants its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida, facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida, or by local service agents who are engaged as needed. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and type of balers currently under warranty, and known warranty issues.

Following is a tabular reconciliation of the changes in the warranty accrual:

		2014			2013
Beginning balance	$	60,000		$	60,000
Warranty service provided		(175,728	)		(203,656	)
New product warranties		169,695			205,929
Changes to pre-existing warranty accruals		11,033			(2,273	)
Ending balance	$	65,000		$	60,000

-33-

(i) Earnings Per Share

Basic earnings per share is calculated using the weighted average number of common shares outstanding during each year. Diluted earnings per share includes the net number of shares that would be issued upon the exercise of stock options using the treasury stock method. Options are not considered in loss years as they would be anti-dilutive. There were no stock options outstanding for the years ended October 31, 2014 and 2013, respectively.

(j) Business Reporting Segments

The Company operates in one segment based on the information monitored by the Company’s operating decision makers to manage the business.

(k) Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities.

(L) Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the topic. The guidance requires an entity to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the considerations to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities for fiscal years and interim periods beginning December 15, 2016. The Company is currently assessing the impact of the adoption of this guidance on its financial position, results of operations or disclosures.

(M) Reclassification

Certain amounts in the prior year's financial statements have been reclassified to conform with current year presentation.

(3) Related Party Transactions

Leland E. Boren, a shareholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Boren controls over 50% of the outstanding shares of the Company. Avis owns 100% of The American Baler Company, a competitor of the Company. On January 1, 2014, Avis acquired The Harris Waste Management Group, Inc., also a competitor of the Company. On July 31, 2014 Harris acquired the assets of IPS Balers, Inc. in Baxley, Georgia, another competitor of the Company. These baler companies operate independent of each other. The Company had no equipment sales to, or purchases from these companies in the years ending October 31, 2014 and 2013.

(4) Inventories

Inventories consisted of the following:	2014	2013
Raw materials	$1,715,772	$1,796,661
Work in process	2,584,378	3,964,544
Finished goods	488,731	199,160
	$4,788,881	$5,960,365

-34-

(5) Property, Plant, and Equipment

The following is a summary of property, plant, and equipment, at cost, less accumulated depreciation and amortization:

	2014	2013
Land	$   82,304	$   82,304
Building and Improvements	1,078,950	1,074,636
Machinery and Equipment	1,980,778	1,884,754
Vehicles	101,121	54,866
	3,243,153	3,096,560
Less accumulated depreciation	2,115,740	1,972,631
	$ 1,127,413	$ 1,123,929

Depreciation expense was $143,109 and $129,617 during the years ended October 31, 2014 and 2013, respectively.

(6) Debt

The Company has a $1,650,000 line of credit agreement with First Merchants Bank of Muncie Indiana that was entered into on January 7, 2013. The line of credit allows the Company to borrow at an interest rate equal to the sum of the LIBOR Rate applicable to each interest period plus 2.39%. The line of credit is secured by all assets of the Company and has a term of two years. The credit agreement has been modified to extend the termination date to March 15, 2015. The line of credit had an outstanding balance of $644,345 at October 31, 2014 and $1,648,649 at October 31, 2013.

In July 2014 the Company financed a service truck by entering into a loan agreement with Ford Credit for $41,254. The note has a term of forty-eight months at an interest rate of 3.8%. Principal payments for fiscal years ending October 31, are scheduled as follows:

2015	$	9,879
2016		10,255
2017		10,646
2018		7,322
Total	$	38,102

 (7) Commitments and Contingencies

The Company in the ordinary course of business, is subject to claims made under, and from time to time is named as a defendant in legal proceedings relating to the operations of its business, including the sale 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 August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was fatally injured in a workplace accident while an employee of the Company. The accident occurred in September 2008. The Plaintiff demanded $2,500,000 to settle this claim. A motion to dismiss the Complaint was granted without prejudice in January 2012, allowing the Plaintiff the ability to file an amended Complaint. In July 2014, the Company filed a Motion for Summary Judgment to have the complaint dismissed. On December 1, 2014, the Company and its insurance company agreed to settle this claim for $150,000. The Company will be responsible for $75,000, one-half of the total settlement amount. During the fourth quarter of fiscal 2014, the Company accrued an additional $50,000 for a total accrued liability of $75,000 related to this settlement.

-35-

On December 26, 2013 the Company was served with a civil action filed by Georgetown Paper Stock of Rockville, Inc. for breach of warranties. In November 2014, a jury returned a verdict in favor of the Plaintiff, Georgetown Paper Stock of Rockville, Inc. in the amount of $368,248. The Company was responsible for $277,968 of this amount and its dealer, BE Equipment, Inc., was responsible for $90,280. The baler involved in this claim will be returned to the Company. The Company recorded an accrued liability of $285,000 and an asset in transit of $85,000 resulting in net expense of $200,000 in the fourth quarter of fiscal 2014.

In November 2014, the Company agreed to a Consent Order with the Florida Department of Environmental Protection to remove contaminated solid waste sand blasting material from its property. The Company recorded an accrued liability of $291,000 as of October 31, 2014, for the cost of the removal of this material.

(8) Income Taxes

Income tax benefit attributable to income from continuing operations consists of:

	2014		2013
Current income tax provision:
Federal	$	358,172	$	256,596
State		45,871		23,823
		404,043		280,419
Deferred income tax provision:
Federal		30,587		65,772
State		2,840		6,106
		33,427		71,878
Income tax provision	$	437,470	$	352,297

The differences between income taxes as provided at the federal statutory tax rate of 34% and the Company’s actual income taxes are as follows:

	2014		2013
Expected federal income tax expense at
Statutory rate	$	391,642	$	352,067
State income tax expense, net of federal
income tax effect		23,821		21,427
Other – meals and entertainment		9,389		8,650
Other		12,618		(29,847	)
Income tax provision	$	437,470	$	352,297

Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. As of October 31, 2014 and 2013, the net deferred tax assets were $46,196 and $79,623, respectively. The Company determined it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets of October 31, 2014 and 2013 and no valuation allowance is deemed necessary. The realization of deferred tax assets will depend on the Company’s ability to continue to generate taxable income in the future.

-36-

The significant components of the net deferred income taxes at October 31, 2014 and 2013 are as follows:

	2014			2013
Deferred tax assets
Inventory reserve	$	70,238		$	73,480
Other reserves and allowances		64,045			65,251
Capitalized inventory costs		91,094			114,400
Total deferred tax assets		225,377			253,131
Deferred tax liabilities
Property, plant, and equipment		(179,181	)		(173,508	)
Total gross deferred tax liabilities		(179,181	)		(173,508	)
Net deferred income taxes	$	46,196		$	79,623

For the years ended October 31, 2014 and 2013, the Company did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties. Our evaluation was performed for the tax years ended October 31, 2006 through October 31, 2014, the tax years which remain subject to examination by tax jurisdictions as of October 31, 2014.

(9) Employees’ Benefit Plan

The Company has a defined contribution plan and profit sharing program for its employees. The Company made no contributions to the plan during the years ended October 31, 2014 or 2013.

(10) Business and Credit Concentrations

Export sales were approximately 49% and 43% of net sales for the years ended October 31, 2014 and 2013, respectively. The principal international markets served by the Company, include Canada, China, Mexico, United Kingdom, India, Korea, Japan, Russia, Saudi Arabia, and Brazil. In 2014, three customers accounted for 15.4%, 10.2% and 9.4% of net sales, respectively, while in 2013, three customers accounted for 17.3%, 13.6% and 13.2% of net sales, respectively. In 2014, 23.4% of the Company’s total sales were to Saudi Arabia and in 2013, 13.2% of the Company’s total sales were to Saudi Arabia. Two customers accounted for 40.2%, and 20.2% respectively, of the Company’s accounts receivable at October 31, 2014 and two customers accounted for 60.8%, and 17.1%, respectively, of the Company accounts receivable at October 31, 2013.

- 37 -

EX-31.1

 Exhibit 31.1

I, Roger Griffin, certify that:

1. I have reviewed this annual report on Form 10-K for the year ended October 31, 2014 of International Baler Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and

5. The registrants certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: January 29, 2015

_/S/D. Roger Griffin_ __

   D. Roger Griffin

Chief Executive Officer

EX-31.2

Exhibit 31.2

I, William E. Nielsen, certify that:

1. I have reviewed this annual report on Form 10-K for the year ended October 31, 2014 of International Baler Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and

5. The registrants certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(c) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(d) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: January 29, 2015

/S/William E. Nielsen__________

      William E. Nielsen

       Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

I have reviewed the annual report of International Baler Corporation on Form 10-K for the year ended October 31, 2014 (the “Report”);

To the best of my knowledge, the Report (i) fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and (ii) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of International Baler Corp. and its subsidiary during the period covered by this Report.

Dated: January 29, 2015

/S/D. Roger Griffin________

    D. Roger Griffin

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

I have reviewed the annual report of International Baler Corporation on Form 10-K for the year ended October 31, 2014 (the “Report”);

To the best of my knowledge, the Report (i) fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and (ii) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of International Baler Corp. and its subsidiary during the period covered by this Report.

Dated: January 29, 2015

/S/William E. Nielsen______

     William E. Nielsen

   Chief Financial Officer

XML

Income Taxes - Net Deferred Income Taxes (Details) (USD $)	Oct. 31, 2014	Oct. 31, 2013
Deferred tax assets
Inventory Reserve	$ 70,238	$ 73,480
Other Reserves and allowences	64,045	65,251
Capitalized inventory costs	91,094	114,400
Total deferred tax assets	225,377	253,131
Deferred tax liabilities
Property, plant, and equipment	(179,181)	(173,508)
Total gross deferred tax liabilities	(179,181)	(173,508)
Net deferred income taxes	$ 46,196	$ 79,623

XML

Inventories - Inventories (Details) (USD $)	Oct. 31, 2014	Oct. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 1,715,772	$ 1,796,661
Work in process	2,584,378	3,964,544
Finished goods	488,731	199,160
Inventories	$ 4,788,881	$ 5,960,365

XML

Related Party Transactions

12 Months Ended

Oct. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

(3) Related Party Transactions

Leland E. Boren, a shareholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Boren controls over 50% of the outstanding shares of the Company. Avis owns 100% of The American Baler Company, a competitor of the Company. On January 1, 2014, Avis acquired The Harris Waste Management Group, Inc., also a competitor of the Company. On July 31, 2014 Harris acquired the assets of IPS Balers, Inc. in Baxley, Georgia, another competitor of the Company. These baler companies operate independent of each other. The Company had no equipment sales to, or purchases from these companies in the years ending October 31, 2014 and 2013.

XML

Debt (Details Narrative) (USD $)

12 Months Ended

Oct. 31, 2014

Oct. 31, 2013

Short-term Debt [Line Items]

Promissory note

$ 644,345

$ 1,648,649

Line of Credit [Member]

Short-term Debt [Line Items]

Line of Credit Agreement

1,650,000

Interest Rate Terms

LIBOR Rate applicable to each interest period plus 2.39%

Auto Loan Agreement [Member]

Short-term Debt [Line Items]

Line of Credit Agreement

$ 41,254

Interest Rate Terms

term of forty-eight months at an interest rate of 3.8%

XML

Debt (Details) (USD $)	Oct. 31, 2014
Debt Details
2015	$ 9,879
2016	10,255
2017	10,646
2018	7,322
Total	$ 38,102

XML

Commitment and Contingencies (Details Narrative) (USD $)	12 Months Ended
	Oct. 31, 2014
Estate of a former employee [Member]
Loss Contingencies [Line Items]
Alleged Damages	$ 2,500,000
Claim settlement	150,000
Settlement to be paid by company	75,000
Settlement to be paid by third party	75,000
Accrued settlement liability	50,000
Georgetown Paper Stock of Rockville, Inc [Member]
Loss Contingencies [Line Items]
Alleged Damages	368,248
Settlement to be paid by company	277,968
Settlement to be paid by third party	90,280
Accrued settlement liability	285,000
Deferred settlement	85,000
Net settlement paid	200,000
Florida Department of Environmental Protection [Member]
Loss Contingencies [Line Items]
Accrued settlement liability	$ 291,000

XML

Income Taxes - Income Tax Benefit (Details) (USD $)	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Current income tax provision:
Federal	$ 358,172	$ 256,596
State	45,871	23,823
Current income tax provision	404,043	280,419
Federal	30,587	65,772
State	2,840	6,106
Deferred income tax provision	33,427	71,878
Income tax provision	$ 437,470	$ 352,297

XML

Summary of Significant Accounting Policies

12 Months Ended

Oct. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

(a) Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates and assumptions include allowances for doubtful accounts, valuation of deferred tax assets, valuation of inventory, and estimates for warranty claims. Actual results could differ from those estimates.

(b) Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, bank demand accounts and money market accounts having original maturities of less than three months.

(c) Accounts Receivable and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly including the analysis of historical trends, customer credit worthiness and the aging of receivables. In addition, past due balances are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

(d) Inventories

Inventories are stated at the lower of cost or market. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. The Company reviews inventory for obsolescence on a regular basis.

(e) Property, Plant, and Equipment

Property, plant and equipment are stated at cost net of accumulated depreciation. The cost of property, plant, and equipment is depreciated over the estimated useful lives of the related assets. Depreciation is computed primarily using the straight-line method over the estimated lives of 5-20 years for machinery and equipment and 31-40 years for buildings.

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell, and depreciation ceases.

(f) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses.

(g) Revenue Recognition

The Company recognizes revenue when finished products and/or parts are shipped and the customer takes ownership and assumes the risk of loss. Revenue from installation services is recognized on completion of the service. The Company recognizes revenue from repair services in the period in which the service is provided.

(h) Warranties and Service

The Company typically warrants its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida, facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida, or by local service agents who are engaged as needed. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and type of balers currently under warranty, and known warranty issues.

Following is a tabular reconciliation of the changes in the warranty accrual:

		2014			2013
Beginning balance	$	60,000		$	60,000
Warranty service provided		(175,728	)		(203,656	)
New product warranties		169,695			205,929
Changes to pre-existing warranty accruals		11,033			(2,273	)
Ending balance	$	65,000		$	60,000

(i) Earnings Per Share

Basic earnings per share is calculated using the weighted average number of common shares outstanding during each year. Diluted earnings per share includes the net number of shares that would be issued upon the exercise of stock options using the treasury stock method. Options are not considered in loss years as they would be anti-dilutive. There were no stock options outstanding for the years ended October 31, 2014 and 2013, respectively.

(j) Business Reporting Segments

The Company operates in one segment based on the information monitored by the Company’s operating decision makers to manage the business.

(k) Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities.

(L) Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the topic. The guidance requires an entity to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the considerations to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities for fiscal years and interim periods beginning December 15, 2016. The Company is currently assessing the impact of the adoption of this guidance on its financial position, results of operations or disclosures.

(M) Reclassification

Certain amounts in the prior year's financial statements have been reclassified to conform with current year presentation.

XML

Income Taxes - Income tax provide by federal statutory rate (Details) (USD $)	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Income Tax Disclosure [Abstract]
Expected federal income tax expense Statutory rate	$ 391,642	$ 352,067
State income tax expense, net federal income tax effect	23,821	21,427
Other - meals and entertainment	9,389	8,650
Other	12,618	(29,847)
Income tax provision	$ 437,470	$ 352,297

XML

Balance Sheets (USD $)	Oct. 31, 2014	Oct. 31, 2013
Current assets:
Cash and cash equivalents	$ 2,803,698	$ 1,877,256
Accounts receivable, net of allowance for doubtful accounts of $29,412 at October 31, 2014 and $45,764 at October 31, 2013	3,732,637	2,466,887
Inventories	4,788,881	5,960,365
Prepaid expense and other current assets	183,725	98,792
Deferred income taxes	217,676	245,431
Total current assets	11,726,617	10,648,731
Property, plant and equipment, at cost:	3,243,153	3,096,560
Less: accumulated depreciation	2,115,740	1,972,631
Net property, plant and equipment	1,127,413	1,123,929
Other assets:
Other assets	1,256	1,256
TOTAL ASSETS	12,855,286	11,773,916
Current liabilities:
Revolving promissory note	644,345	1,648,649
Notes payable-current portion	9,879
Accounts payable	923,391	1,439,777
Accrued liabilities	1,512,985	659,096
Customer deposits	1,667,932	677,954
Total current liabilities	4,758,532	4,425,476
Deferred income taxes	171,480	165,808
Notes payable-long term	28,223
Total liabilities	4,958,235	4,591,284
Stockholders' equity:
Preferred stock, par value $.0001, 10,000,000 shares authorized, none issued
Common stock, par value $.01, 25,000,000 shares authorized; 6,429,875 shares issued at October 31, 2014 and October 31, 2013	64,299	64,299
Additional paid-in capital	6,419,687	6,419,687
Retained earnings	2,094,475	1,380,056
Total stockholders' equity before treasury stock	8,578,461	7,864,042
Less: Treasury stock, 1,245,980 shares at October 31, 2014 and October 31, 2013, at cost	(681,410)	(681,410)
Total stockholders' equity	7,897,051	7,182,632
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 12,855,286	$ 11,773,916

XML

Statements of Cash Flows (USD $)	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Cash flow from operating activities:
Net income	$ 714,419	$ 683,194
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	143,109	133,221
Provision for doubtful accounts	(16,352)	(20,000)
Deferred income tax	33,427	71,878
Changes in operating assets and liabilities:
Accounts receivable	(1,249,398)	(1,011,094)
Inventories	1,171,484	(1,764,814)
Prepaid expenses and other assets	(84,933)	26,128
Accounts payable	(516,386)	733,522
Accrued liabilities and deferred taxes	853,889	185,572
Customer deposits	989,978	(307,008)
Net cash provided by (used in) operating activities	2,039,237	(1,269,401)
Cash flows from investing activities:
Proceeds from notes receivable from former Director		3,673
Purchase of property and equipment	(105,338)	(224,805)
Net cash used in investing activities	(105,338)	(221,132)
Cash flows from financing activities
Payments on notes payable	(3,153)
Advances from revolving promissory note	400,000	1,648,649
Payments on revolving promissory note	(1,404,304)
Net cash (used in) provided by financing activities	(1,007,457)	1,648,649
Net increase in cash and cash equivalents	926,442	158,116
Cash and cash equivalents at beginning of period	1,877,256	1,719,140
Cash and cash equivalents at end of period	2,803,698	1,877,256
Cash paid during period for Interest	35,816	9,195
Cash paid during the period for Income taxes	572,729
Supplemental noncash investing activities:
Purchase of property, plant and equipment, total	146,593
Vehicle purchased under note payable	41,255
Cash paid for property, plant and equipment	$ 105,338	$ 0

XML

Business and Credit Concentrations (Details Narrative)	Oct. 31, 2014	Oct. 31, 2013
Export Sales [Member]
Concentration Risk [Line Items]
Sales	49.00%	43.00%
Customer #1 [Member]
Concentration Risk [Line Items]
Sales	15.40%	17.30%
Accounts Receivable	40.20%	60.80%
Customer #2 [Member]
Concentration Risk [Line Items]
Sales	10.20%	13.60%
Accounts Receivable	20.20%	17.10%
Customer #3 [Member]
Concentration Risk [Line Items]
Sales	9.40%	13.20%
Saudi Arabia [Member]
Concentration Risk [Line Items]
Sales	23.40%	13.20%

XML

Income Taxes (Tables)

12 Months Ended

Oct. 31, 2014

Income Taxes Tables

Income Tax Benefit

	2014		2013
Current income tax provision:
Federal	$	358,172	$	256,596
State		45,871		23,823
		404,043		280,419
Deferred income tax provision:
Federal		30,587		65,772
State		2,840		6,106
		33,427		71,878
Income tax provision	$	437,470	$	352,297

Income tax provide by federal statutory rate

	2014		2013
Expected federal income tax expense at
Statutory rate	$	391,642	$	352,067
State income tax expense, net of federal
income tax effect		23,821		21,427
Other – meals and entertainment		9,389		8,650
Other		12,618		(29,847	)
Income tax provision	$	437,470	$	352,297

Net Deferred Income Taxes

	2014			2013
Deferred tax assets
Inventory reserve	$	70,238		$	73,480
Other reserves and allowances		64,045			65,251
Capitalized inventory costs		91,094			114,400
Total deferred tax assets		225,377			253,131
Deferred tax liabilities
Property, plant, and equipment		(179,181	)		(173,508	)
Total gross deferred tax liabilities		(179,181	)		(173,508	)
Net deferred income taxes	$	46,196		$	79,623

XML

Related Party Transactions (Details Narrative)	Oct. 31, 2014
Related Party Transactions [Abstract]
Ownership	50.00%

XML

Nature of Business

12 Months Ended

Oct. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business:

(1) Nature of Business

International Baler Corporation (the “Company”) is a manufacturer of baling equipment which utilizes technical, hydraulic and electrical mechanisms to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models to meet specific customer requirements.

The Company’s customers include recycling facilities, paper mills, textile mills, and the companies which generate the materials for baling and recycling.

XML

Balance Sheets (Parenthetical) (USD $)	Oct. 31, 2014	Oct. 31, 2013
Current Assets:
Accounts receivable, net of allowance for doubtful accounts	$ 29,412	$ 45,764
Stockholders' equity:
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, share authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	6,429,875	6,429,875
Treasury stock, shares	1,245,980	1,245,980

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Oct. 31, 2014

Accounting Policies [Abstract]

Nature of Business

International Baler Corporation (the “Company”) is a manufacturer of baling equipment which utilizes technical, hydraulic and electrical mechanisms to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models to meet specific customer requirements.

The Company’s customers include recycling facilities, paper mills, textile mills, and the companies which generate the materials for baling and recycling.

Use of Estimates

(a) Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates and assumptions include allowances for doubtful accounts, valuation of deferred tax assets, valuation of inventory, and estimates for warranty claims. Actual results could differ from those estimates.

Cash and Cash Equivalents

(b) Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, bank demand accounts and money market accounts having original maturities of less than three months.

Accounts Receivable and Allowance for Doubtful Accounts

(c) Accounts Receivable and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly including the analysis of historical trends, customer credit worthiness and the aging of receivables. In addition, past due balances are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Inventories

(d) Inventories

Inventories are stated at the lower of cost or market. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. The Company reviews inventory for obsolescence on a regular basis.

Property, Plant, and Equipment

(e) Property, Plant, and Equipment

Property, plant and equipment are stated at cost net of accumulated depreciation. The cost of property, plant, and equipment is depreciated over the estimated useful lives of the related assets. Depreciation is computed primarily using the straight-line method over the estimated lives of 5-20 years for machinery and equipment and 31-40 years for buildings.

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell, and depreciation ceases.

Income Taxes

(f) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses.

Revenue Recognition

(g) Revenue Recognition

The Company recognizes revenue when finished products and/or parts are shipped and the customer takes ownership and assumes the risk of loss. Revenue from installation services is recognized on completion of the service. The Company recognizes revenue from repair services in the period in which the service is provided.

Warranties and Service

(h) Warranties and Service

The Company typically warrants its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida, facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida, or by local service agents who are engaged as needed. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and type of balers currently under warranty, and known warranty issues.

Following is a tabular reconciliation of the changes in the warranty accrual:

		2014			2013
Beginning balance	$	60,000		$	60,000
Warranty service provided		(175,728	)		(203,656	)
New product warranties		169,695			205,929
Changes to pre-existing warranty accruals		11,033			(2,273	)
Ending balance	$	65,000		$	60,000

Earnings Per Share

(i) Earnings Per Share

Basic earnings per share is calculated using the weighted average number of common shares outstanding during each year. Diluted earnings per share includes the net number of shares that would be issued upon the exercise of stock options using the treasury stock method. Options are not considered in loss years as they would be anti-dilutive. There were no stock options outstanding for the years ended October 31, 2014 and 2013, respectively.

Business Reporting Segments

(j) Business Reporting Segments

The Company operates in one segment based on the information monitored by the Company’s operating decision makers to manage the business.

Fair Value of Financial Instruments

(k) Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities.

Recent Accounting Pronouncements

(L) Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the topic. The guidance requires an entity to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the considerations to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities for fiscal years and interim periods beginning December 15, 2016. The Company is currently assessing the impact of the adoption of this guidance on its financial position, results of operations or disclosures.

Reclassification

(M) Reclassification

Certain amounts in the prior year's financial statements have been reclassified to conform with current year presentation.

XML

Document and Entity Information (USD $)	12 Months Ended
	Oct. 31, 2014	Jan. 15, 2015	Apr. 30, 2014
Document And Entity Information
Entity Registrant Name	International Baler Corporation
Entity Central Index Key	0000781902
Document Type	10-K
Document Period End Date	Oct. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 4,007,843
Entity Common Stock, Shares Outstanding		5,183,895
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 31, 2014

Accounting Policies [Abstract]

Warranty Accrual

		2014			2013
Beginning balance	$	60,000		$	60,000
Warranty service provided		(175,728	)		(203,656	)
New product warranties		169,695			205,929
Changes to pre-existing warranty accruals		11,033			(2,273	)
Ending balance	$	65,000		$	60,000

XML

Statements of Income (USD $)	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Net sales:
Equipment	$ 16,969,452	$ 13,728,599
Parts and service	2,816,051	2,354,339
Total net sales	19,785,503	16,082,938
Cost of sales	15,577,846	13,045,001
Gross profit	4,207,657	3,037,937
Operating expense:
Selling expense	999,018	971,387
Administrative expense	2,027,640	1,019,347
Total operating expense	3,026,658	1,990,734
Operating income	1,180,999	1,047,203
Other income (expense):
Interest income	6,706	959
Interest expense	(35,816)	(12,671)
Total other income (expense)	(29,110)	(11,712)
Income before income taxes	1,151,889	1,035,491
Income tax provision	437,470	352,297
Net income	$ 714,419	$ 683,194
Income per share, basic and diluted	$ 0.14	$ 0.13
Weighted average number of shares outstanding	5,183,895	5,183,895

XML

Debt

12 Months Ended

Oct. 31, 2014

Debt Disclosure [Abstract]

Debt

(6) Debt

The Company has a $1,650,000 line of credit agreement with First Merchants Bank of Muncie Indiana that was entered into on January 7, 2013. The line of credit allows the Company to borrow at an interest rate equal to the sum of the LIBOR Rate applicable to each interest period plus 2.39%. The line of credit is secured by all assets of the Company and has a term of two years. The credit agreement has been modified to extend the termination date to March 15, 2015. The line of credit had an outstanding balance of $644,345 at October 31, 2014 and $1,648,649 at October 31, 2013.

In July 2014 the Company financed a service truck by entering into a loan agreement with Ford Credit for $41,254. The note has a term of forty-eight months at an interest rate of 3.8%. Principal payments for fiscal years ending October 31, are scheduled as follows:

2015	$	9,879
2016		10,255
2017		10,646
2018		7,322
Total	$	38,102

XML

Property, Plant, and Equipment

12 Months Ended

Oct. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

(5) Property, Plant, and Equipment

The following is a summary of property, plant, and equipment, at cost, less accumulated depreciation and amortization:

	2014	2013
Land	$   82,304	$   82,304
Building and Improvements	1,078,950	1,074,636
Machinery and Equipment	1,980,778	1,884,754
Vehicles	101,121	54,866
	3,243,153	3,096,560
Less accumulated depreciation	2,115,740	1,972,631
	$ 1,127,413	$ 1,123,929

Depreciation expense was $143,109 and $129,617 during the years ended October 31, 2014 and 2013, respectively.

XML

Summary of Significant Accounting Policies - Warranty Accrual (Details) (USD $)	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract]
Beginning balance	$ 60,000	$ 60,000
Warranty service provided	(175,728)	(203,656)
New product warranties	169,695	205,929
Changes to pre-existing warranty accruals	11,033	(2,273)
Ending balance	$ 65,000	$ 60,000

XML

Inventories (Tables)

12 Months Ended

Oct. 31, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following:	2014	2013
Raw materials	$1,715,772	$1,796,661
Work in process	2,584,378	3,964,544
Finished goods	488,731	199,160
	$4,788,881	$5,960,365

XML

Employees' Benefit Plan

12 Months Ended

Oct. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Employees' Benefit Plan

(9) Employees’ Benefit Plan

The Company has a defined contribution plan and profit sharing program for its employees. The Company made no contributions to the plan during the years ended October 31, 2014 or 2013.

XML

Commitments and Contingencies

12 Months Ended

Oct. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

 (7) Commitments and Contingencies

The Company in the ordinary course of business, is subject to claims made under, and from time to time is named as a defendant in legal proceedings relating to the operations of its business, including the sale 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 August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was fatally injured in a workplace accident while an employee of the Company. The accident occurred in September 2008. The Plaintiff demanded $2,500,000 to settle this claim. A motion to dismiss the Complaint was granted without prejudice in January 2012, allowing the Plaintiff the ability to file an amended Complaint. In July 2014, the Company filed a Motion for Summary Judgment to have the complaint dismissed. On December 1, 2014, the Company and its insurance company agreed to settle this claim for $150,000. The Company will be responsible for $75,000, one-half of the total settlement amount. During the fourth quarter of fiscal 2014, the Company accrued an additional $50,000 for a total accrued liability of $75,000 related to this settlement.

On December 26, 2013 the Company was served with a civil action filed by Georgetown Paper Stock of Rockville, Inc. for breach of warranties. In November 2014, a jury returned a verdict in favor of the Plaintiff, Georgetown Paper Stock of Rockville, Inc. in the amount of $368,248. The Company was responsible for $277,968 of this amount and its dealer, BE Equipment, Inc., was responsible for $90,280. The baler involved in this claim will be returned to the Company. The Company recorded an accrued liability of $285,000 and an asset in transit of $85,000 resulting in net expense of $200,000 in the fourth quarter of fiscal 2014.

In November 2014, the Company agreed to a Consent Order with the Florida Department of Environmental Protection to remove contaminated solid waste sand blasting material from its property. The Company recorded an accrued liability of $291,000 as of October 31, 2014, for the cost of the removal of this material.

XML

Income Taxes

12 Months Ended

Oct. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

(8) Income Taxes

Income tax benefit attributable to income from continuing operations consists of:

	2014		2013
Current income tax provision:
Federal	$	358,172	$	256,596
State		45,871		23,823
		404,043		280,419
Deferred income tax provision:
Federal		30,587		65,772
State		2,840		6,106
		33,427		71,878
Income tax provision	$	437,470	$	352,297

The differences between income taxes as provided at the federal statutory tax rate of 34% and the Company’s actual income taxes are as follows:

	2014		2013
Expected federal income tax expense at
Statutory rate	$	391,642	$	352,067
State income tax expense, net of federal
income tax effect		23,821		21,427
Other – meals and entertainment		9,389		8,650
Other		12,618		(29,847	)
Income tax provision	$	437,470	$	352,297

Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. As of October 31, 2014 and 2013, the net deferred tax assets were $46,196 and $79,623, respectively. The Company determined it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets of October 31, 2014 and 2013 and no valuation allowance is deemed necessary. The realization of deferred tax assets will depend on the Company’s ability to continue to generate taxable income in the future.

The significant components of the net deferred income taxes at October 31, 2014 and 2013 are as follows:

	2014			2013
Deferred tax assets
Inventory reserve	$	70,238		$	73,480
Other reserves and allowances		64,045			65,251
Capitalized inventory costs		91,094			114,400
Total deferred tax assets		225,377			253,131
Deferred tax liabilities
Property, plant, and equipment		(179,181	)		(173,508	)
Total gross deferred tax liabilities		(179,181	)		(173,508	)
Net deferred income taxes	$	46,196		$	79,623

For the years ended October 31, 2014 and 2013, the Company did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties. Our evaluation was performed for the tax years ended October 31, 2006 through October 31, 2014, the tax years which remain subject to examination by tax jurisdictions as of October 31, 2014.

XML

Business and Credit Concentrations

12 Months Ended

Oct. 31, 2014

Risks and Uncertainties [Abstract]

Business and Credit Concentrations

(10) Business and Credit Concentrations

Export sales were approximately 49% and 43% of net sales for the years ended October 31, 2014 and 2013, respectively. The principal international markets served by the Company, include Canada, China, Mexico, United Kingdom, India, Korea, Japan, Russia, Saudi Arabia, and Brazil. In 2014, three customers accounted for 15.4%, 10.2% and 9.4% of net sales, respectively, while in 2013, three customers accounted for 17.3%, 13.6% and 13.2% of net sales, respectively. In 2014, 23.4% of the Company’s total sales were to Saudi Arabia and in 2013, 13.2% of the Company’s total sales were to Saudi Arabia. Two customers accounted for 40.2%, and 20.2% respectively, of the Company’s accounts receivable at October 31, 2014 and two customers accounted for 60.8%, and 17.1%, respectively, of the Company accounts receivable at October 31, 2013.

XML

Income Taxes (Details Narrative)	12 Months Ended
	Oct. 31, 2014
Components of Deferred Tax Assets [Abstract]
Federal Statutory Rate	34.00%

XML

Property, Plant, and Equipment (Tables)

12 Months Ended

Oct. 31, 2014

Property, Plant and Equipment [Abstract]

Property, plant and equipment

	2014	2013
Land	$   82,304	$   82,304
Building and Improvements	1,078,950	1,074,636
Machinery and Equipment	1,980,778	1,884,754
Vehicles	101,121	54,866
	3,243,153	3,096,560
Less accumulated depreciation	2,115,740	1,972,631
	$ 1,127,413	$ 1,123,929

XML

Property, Plant, and Equipment (Details) (USD $)	Oct. 31, 2014	Oct. 31, 2013
Property Plant And Equipment Details
Land	$ 82,304	$ 82,304
Building and Improvements	1,078,950	1,074,636
Machinery and Equipment	1,980,778	1,884,754
Vehicles	101,121	54,866
Property, plant and equipment, at cost:	3,243,153	3,096,560
Less: accumulated depreciation	2,115,740	1,972,631
Net property, plant and equipment	$ 1,127,413	$ 1,123,929

XML

Statements of Stockholders Equity (USD $)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Deficit) [Member]	Treasury Stock [Member]	Total
Beginning Balance, Value at Oct. 31, 2012	$ 64,299	$ 6,419,687	$ 696,862	$ (681,410)	$ 6,499,438
Beginning Balace, Shares at Oct. 31, 2012	6,429,875			1,245,980
Net Income			683,194		683,194
End Balance, Value at Oct. 31, 2013	64,299	6,419,687	1,380,056	(681,410)	7,182,632
End Balance, Shares at Oct. 31, 2013	6,429,875			1,245,980
Net Income			714,419		714,419
End Balance, Value at Oct. 31, 2014	$ 64,299	$ 6,419,687	$ 2,094,475	$ (681,410)	$ 7,897,051
End Balance, Shares at Oct. 31, 2014	6,429,875			1,245,980

XML

Inventories

12 Months Ended

Oct. 31, 2014

Inventory Disclosure [Abstract]

Inventories

(4) Inventories

Inventories consisted of the following:	2014	2013
Raw materials	$1,715,772	$1,796,661
Work in process	2,584,378	3,964,544
Finished goods	488,731	199,160
	$4,788,881	$5,960,365

XML

Property, Plant, and Equipment (Details Narrative) (USD $)	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation Expense	$ 143,109	$ 129,617

XML

Debt (Tables)

12 Months Ended

Oct. 31, 2014

Debt Tables

Debt

2015	$	9,879
2016		10,255
2017		10,646
2018		7,322
Total	$	38,102