Cover
Cover - shares | 9 Months Ended | |
Jul. 31, 2022 | Sep. 09, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | PHARMA-BIO SERV, INC. | |
Entity Central Index Key | 0001304161 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jul. 31, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 22,944,286 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-50956 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 20-0653570 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | Pharma-Bio Serv | |
Entity Address Address Line 2 | # 6 Road 696 | |
Entity Address City Or Town | Dorado | |
Entity Address Postal Zip Code | 00646 | |
City Area Code | 787 | |
Local Phone Number | 278-2709 | |
Entity Address Country | PR |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jul. 31, 2022 | Oct. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 14,238,829 | $ 17,468,345 |
Accounts receivable | 4,802,756 | 4,613,142 |
Prepaids and other assets | 543,024 | 740,869 |
Total current assets | 19,584,609 | 22,822,356 |
Property and equipment, net | 74,347 | 105,522 |
Operating lease right-of-use | 538,957 | 639,969 |
Other assets | 130,932 | 353,354 |
Total assets | 20,328,845 | 23,921,201 |
Current liabilities | ||
Current operating lease liabilities | 138,053 | 130,060 |
Accounts payable and accrued expenses | 1,738,734 | 2,071,264 |
Current portion of US Tax Reform Transition Tax and income taxes payable | 281,702 | 449,896 |
Total current liabilities | 2,158,489 | 2,651,220 |
US Tax Reform Transition Tax payable | 1,639,048 | 1,850,536 |
Long-term operating lease liabilities | 382,716 | 487,364 |
Other liabilities | 0 | 17,950 |
Total liabilities | 4,180,253 | 5,007,070 |
Stockholders' equity | ||
Preferred Stock, $0.0001 par value; authorized 10,000,000 shares; none outstanding | 0 | 0 |
Common Stock, $0.0001 par value; authorized 50,000,000 shares; 23,457,515 and 23,433,341 shares issued, and 22,946,486 and 23,003,615 shares outstanding at July 31, 2022 and October 31, 2021, respectively | 2,346 | 2,343 |
Additional paid-in capital | 1,523,393 | 1,480,193 |
Retained earnings | 15,094,091 | 17,707,384 |
Accumulated other comprehensive income | 28,619 | 144,455 |
total | 16,648,449 | 19,334,375 |
Treasury stock, at cost; 511,029 and 429,726 common shares held at July 31, 2022 and October 31, 2021, respectively | (499,857) | (420,244) |
Total stockholders' equity | 16,148,592 | 18,914,131 |
Total liabilities and stockholders' equity | $ 20,328,845 | $ 23,921,201 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jul. 31, 2022 | Oct. 31, 2021 |
Stockholders' equity | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 23,457,515 | 23,433,341 |
Common stock, outstanding | 22,946,486 | 23,003,615 |
Treasury stock, shares | 511,029 | 429,726 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Condensed Consolidated Statements of Operations (Unaudited) | ||||
REVENUES | $ 4,774,103 | $ 4,987,909 | $ 14,760,525 | $ 14,517,884 |
COST OF SERVICES | 3,461,789 | 3,732,847 | 10,987,722 | 10,656,840 |
GROSS PROFIT | 1,312,314 | 1,255,062 | 3,772,803 | 3,861,044 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 942,809 | 894,572 | 2,766,820 | 2,916,654 |
INCOME FROM OPERATIONS | 369,505 | 360,490 | 1,005,983 | 944,390 |
OTHER INCOME (EXPENSE), NET | (53,683) | 1,952,898 | (48,664) | 1,976,390 |
INCOME BEFORE INCOME TAX | 315,822 | 2,313,388 | 957,319 | 2,920,780 |
INCOME TAX EXPENSE | 27,788 | 38,270 | 124,014 | 137,359 |
NET INCOME | $ 288,034 | $ 2,275,118 | $ 833,305 | $ 2,783,421 |
BASIC AND DILUTED EARNINGS PER COMMON SHARE | $ 0.013 | $ 0.098 | $ 0.036 | $ 0.120 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 22,952,009 | 23,029,215 | 22,996,584 | 23,022,950 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 22,970,959 | 23,174,605 | 23,031,926 | 23,178,091 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Unaudited) | ||||
NET INCOME | $ 288,034 | $ 2,275,118 | $ 833,305 | $ 2,783,421 |
Foreign currency translation: | ||||
Net unrealized gain (loss) | (103,357) | 5,232 | (179,989) | 33,723 |
Intercompany balances foreign exchange settlement, included in net income | 64,153 | 0 | 64,153 | 0 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (39,204) | 5,232 | (115,836) | 33,723 |
COMPREHENSIVE INCOME, NET OF TAX | $ 248,830 | $ 2,280,350 | $ 717,469 | $ 2,817,144 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss | Treasury Stock |
Balance, shares at Oct. 31, 2020 | 23,405,753 | ||||||
Balance, amount at Oct. 31, 2020 | $ 22,716,661 | $ 2,341 | $ 0 | $ 1,423,954 | $ 21,523,990 | $ 160,654 | $ (394,278) |
STOCK-BASED COMPENSATION | 34,290 | $ 0 | 0 | 34,290 | 0 | 0 | 0 |
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS,SHARES | 27,588 | ||||||
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS,AAMOUNT | 0 | $ 2 | 0 | 0 | (2) | 0 | 0 |
NET INCOME | 2,783,421 | 0 | 0 | 0 | 2,783,421 | 0 | 0 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 33,723 | 0 | 0 | 0 | 0 | 33,723 | 0 |
CASH DIVIDEND ($0.075 PER COMMON SHARE AT RECORD DATE) | (1,727,364) | $ 0 | 0 | 0 | (1,727,364) | 0 | 0 |
Balance, shares at Jul. 31, 2021 | 23,433,341 | ||||||
Balance, amount at Jul. 31, 2021 | 23,840,731 | $ 2,343 | 0 | 1,458,244 | 22,580,045 | 194,377 | (394,278) |
Balance, shares at Apr. 30, 2021 | 23,433,341 | ||||||
Balance, amount at Apr. 30, 2021 | 21,548,951 | $ 2,343 | 0 | 1,446,814 | 20,304,927 | 189,145 | (394,278) |
STOCK-BASED COMPENSATION | 11,430 | 0 | 0 | 11,430 | 0 | 0 | 0 |
NET INCOME | 2,275,118 | 0 | 0 | 0 | 2,275,118 | 0 | 0 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 5,232 | $ 0 | 0 | 0 | 0 | 5,232 | 0 |
Balance, shares at Jul. 31, 2021 | 23,433,341 | ||||||
Balance, amount at Jul. 31, 2021 | 23,840,731 | $ 2,343 | 0 | 1,458,244 | 22,580,045 | 194,377 | (394,278) |
Balance, shares at Oct. 31, 2021 | 23,433,341 | ||||||
Balance, amount at Oct. 31, 2021 | 18,914,131 | $ 2,343 | 0 | 1,480,193 | 17,707,384 | 144,455 | (420,244) |
STOCK-BASED COMPENSATION | 43,200 | 0 | 0 | 43,200 | 0 | 0 | 0 |
NET INCOME | 833,305 | 0 | 0 | 0 | 833,305 | 0 | 0 |
CASH DIVIDEND ($0.075 PER COMMON SHARE AT RECORD DATE) | (3,446,595) | $ 0 | 0 | 0 | (3,446,595) | 0 | 0 |
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS,SHARE | 24,174 | ||||||
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS,AMOUNT | 0 | $ 3 | 0 | 0 | (3) | 0 | 0 |
PURCHASE OF TREASURY STOCK (70,903 SHARES) | (79,613) | 0 | 0 | 0 | 0 | 0 | (79,613) |
OTHER COMPREHENSIVE LOSS, NET OF TAX | (115,836) | $ 0 | 0 | 0 | 0 | (115,836) | 0 |
Balance, shares at Jul. 31, 2022 | 23,457,515 | ||||||
Balance, amount at Jul. 31, 2022 | 16,148,592 | $ 2,346 | 0 | 1,523,393 | 15,094,091 | 28,619 | (499,857) |
Balance, shares at Apr. 30, 2022 | 23,457,515 | ||||||
Balance, amount at Apr. 30, 2022 | 15,894,690 | $ 2,346 | 0 | 1,508,994 | 14,806,057 | 67,823 | (490,530) |
STOCK-BASED COMPENSATION | 14,399 | 0 | 0 | 14,399 | 0 | 0 | 0 |
NET INCOME | 288,034 | 0 | 0 | 0 | 288,034 | 0 | 0 |
OTHER COMPREHENSIVE LOSS, NET OF TAX | (39,204) | 0 | 0 | 0 | 0 | (39,204) | 0 |
PURCHASE OF TREASURY STOCK (10,400 SHARES) | (9,327) | $ 0 | 0 | 0 | 0 | 0 | (9,327) |
Balance, shares at Jul. 31, 2022 | 23,457,515 | ||||||
Balance, amount at Jul. 31, 2022 | $ 16,148,592 | $ 2,346 | $ 0 | $ 1,523,393 | $ 15,094,091 | $ 28,619 | $ (499,857) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
NET INCOME | $ 288,034 | $ 2,275,118 | $ 833,305 | $ 2,783,421 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Gain on disposition of property and equipment | 0 | 0 | 0 | (7,404) |
Stock-based compensation | 14,399 | 11,430 | 43,200 | 34,290 |
Depreciation and amortization | 12,962 | 18,183 | 38,307 | 58,438 |
Loans forgiveness | 0 | (1,956,291) | 0 | (1,956,291) |
Decrease (increase) in accounts receivable | 652,913 | 284,599 | (257,384) | (336,467) |
Decrease (increase) in other assets | 220,778 | (552,175) | 489,341 | (302,324) |
Increase (decrease) in liabilities | (83,233) | 360,860 | (814,403) | (429,171) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,105,853 | 441,724 | 332,366 | (155,508) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Acquisition of property and equipment | (2,087) | (7,110) | (7,132) | (11,726) |
Proceeds from sale of property and equipment | 0 | 0 | 0 | 57,571 |
Collection from promissory note receivable | 0 | 0 | 0 | 1,250,000 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (2,087) | (7,110) | (7,132) | 1,295,845 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repurchase of common stock | (9,327) | 0 | (79,613) | 0 |
Payments on obligations under finance lease | 0 | 0 | 0 | (67,079) |
Cash dividends paid to shareholders | 0 | 0 | (3,446,595) | (1,727,364) |
NET CASH USED IN FINANCING ACTIVITIES | (9,327) | 0 | (3,526,208) | (1,794,443) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (19,607) | (2,931) | (28,542) | 14,352 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,074,832 | 431,683 | (3,229,516) | (639,754) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 13,163,997 | 16,066,487 | 17,468,345 | 17,137,924 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 14,238,829 | 16,498,170 | 14,238,829 | 16,498,170 |
Cash paid during the period for: | ||||
Income taxes | 0 | 67,550 | 211,813 | 574,757 |
Interest | 0 | 0 | 0 | 1,404 |
SUPPLEMENTARY SCHEDULES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||
Income tax withheld by clients to be used as a credit in the Company's income tax return | 623 | 0 | 22,161 | 4,046 |
Conversion of cashless exercise of options to shares of common stock and shares issued under restricted stock unit agreements | 0 | 0 | 3 | 2 |
Disposed property and equipment with accumulated depreciation of $35,833 for the three and nine months ended July 31, 2021 | $ 0 | $ 0 | $ 0 | $ 86,000 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2022 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION Pharma-Bio Serv, Inc. (“Pharma-Bio”) is a Delaware corporation organized on January 14, 2004. Pharma-Bio is the parent company of Pharma-Bio Serv PR, Inc. (“Pharma-PR”), Pharma Serv, Inc. (“Pharma-Serv”), and Scienza Labs, Inc. (currently inactive) (“Scienza Labs”), each a Puerto Rico corporation, Pharma-Bio Serv US, Inc. (“Pharma-US”), a Delaware corporation, Pharma-Bio Serv SL (“Pharma-Spain”), a Spanish limited liability company, and Pharma-Bio Serv Brasil Servicos de Consultoria Ltda. (“Pharma-Brazil”), a Brazilian limited liability company. Pharma-Bio, Pharma-PR, Pharma-Serv, Scienza Labs, Pharma-US, Pharma-Spain and Pharma-Brazil are collectively referred to as the “Company.” The Company operates in Puerto Rico, the United States, Europe and Brazil under the name of Pharma-Bio Serv and is engaged in providing technical compliance consulting service. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The condensed consolidated balance sheet of the Company as of October 31, 2021 is derived from audited consolidated financial statements but does not include all disclosures required by generally accepted accounting principles. The unaudited interim condensed consolidated financial statements, include all adjustments, consisting of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim periods. The results of operations for the nine months ended July 31, 2022 are not necessarily indicative of expected results for the full 2022 fiscal year. The accompanying financial data as of July 31, 2022, and for the three-month and nine-month periods ended July 31, 2022 and 2021 has been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally contained in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes contained in our audited Consolidated Financial Statements and the notes thereto for the fiscal year ended October 31, 2021. Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Segments The Company operates in three reportable business segments: (i) Puerto Rico technical compliance consulting, (ii) United States technical compliance consulting, and (iii) Europe technical compliance consulting. Accordingly, the accompanying condensed consolidated financial statements are presented to show these three reportable segments. Use of Estimates The preparation of condensed consolidated 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from these estimates. Fair Value of Financial Instruments The carrying value of the Company’s financial instruments, cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, are considered reasonable estimates of fair value due to their liquidity or short-term nature. Revenue Recognition The Company records revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers. We evaluate our revenue contracts with customers based on the five-step model under ASC 606: (i) Identify the contract with the customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to separate performance obligations; and (v) Recognize revenue when (or as) each performance obligation is satisfied. Revenue is primarily derived from: (1) time and material contracts (representing approximately 99% of total revenues), and (2) short-term fixed-fee contracts or "not to exceed" contracts (representing approximately 1% of total revenues). Time and material contracts are typically based on the number of hours worked at contractually agreed upon rates. These service contracts relate to work which have no alternative use and for which the Company has an enforceable right to payment for the work completed to date. As a result, revenue is recognized over time when or as the Company transfers control of the promised products or services (known as performance obligations) to its customers. Revenue for short term fixed fee contracts or “not to exceed” contracts is recognized similarly, except that certain milestones also have to be reached before revenue is recognized. If the Company determines that a contract will result in a loss, the Company recognizes the estimated loss in the period in which such determination is made. Cash Equivalents For purposes of the consolidated statements of cash flows, cash equivalents include investments in a money market obligations trust that is registered under the U.S. Investment Company Act of 1940, as amended, and liquid investments with original maturities of three months or less. Accounts Receivable Accounts receivable are recorded at their estimated realizable value. Accounts are deemed past due when payment has not been received within the stated time period. The Company’s policy is to review individual past due amounts periodically and write off amounts for which all collection efforts are deemed to have been exhausted. Due to the nature of the Company’s customers, bad debts are mainly accounted for using the direct write-off method whereby an expense is recognized only when a specific balance is determined to be uncollectible in full. The effect of using this method approximates that of the allowance method. However, in the event the Company determines that the collectability of any account receivable reaches a certain uncertainty threshold, the Company will provide an allowance for doubtful account to reduce said balance. As of October 31, 2021 the Company provided an allowance of approximately $5.2 million, to cover the full balance of a customer account receivable. Nevertheless, the Company continues to monitor this account and actively seek full payment from this customer. Income Taxes The Company follows an asset and liability approach method of accounting for income taxes. This method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities are adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. The Company follows guidance from the Financial Accounting Standards Board (“FASB”) related to Accounting for Uncertainty in Income Taxes, Leases The Company follows accounting standards issued by the FASB for the accounting and disclosure of leases. Under those standards, assets and liabilities that arise from leases are recognized on the balance sheet, and the leases are categorized at their inception as either operating or finance leases. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments under the lease. Lease recognition occurs at the commencement date, and lease liability amounts are based on the present value of lease payments made during the lease term. Property and Equipment Owned property and equipment are stated at cost. Vehicles under finance leases are stated at the lower of fair market value or net present value of the minimum lease payments at the inception of the leases. Depreciation of owned assets is provided for, when placed in service, in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, using straight-line basis. Assets under finance leases are amortized over the lease term. While expenditures for repairs and maintenance are expensed when incurred. As of July 31, 2022 and October 31, 2021, the accumulated depreciation amounted to $576,691 and $538,384, respectively. Impairment of Long-Lived Assets The Company evaluates for impairment its long-lived assets to be held and used, and long-lived assets to be disposed of, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Based on management estimates, no impairment of the long-lived assets was present as of July 31, 2022 and October 31, 2021. Stock-based Compensation Stock-based compensation expense is recognized in the consolidated financial statements based on the fair value of the awards granted. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of awards that will be forfeited. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model at the grant date, while for restricted stock units the fair market value of the units is determined by Company’s share market value at grant date. Excess tax benefits related to stock-based compensation are reflected as cash flows from financing activities rather than cash flows from operating activities. The Company has not recognized such cash flows from financing activities since there has been no tax benefit related to the stock-based compensation. Earnings Per Share of Common Stock Basic earnings per share of common stock is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding. Diluted earnings per share includes the dilution of common stock equivalents, which include principally shares that may be issued upon the exercise of warrants, stock option and restricted stock unit awards. The diluted weighted average shares of common stock outstanding were calculated using the treasury stock method for the respective periods. Foreign Operations The functional currency of the Company’s foreign subsidiaries is its local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income. The Company’s intercompany accounts are typically denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income, while gains and losses resulting from the remeasurement of intercompany receivables from those international subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statements of operations. Subsequent Events The Company has evaluated subsequent events through the filing date of this report. The Company has determined that there are no events occurring in this period that required disclosure or adjustment. Reclassifications Certain reclassifications have been made to the July 31, 2021 condensed consolidated financial statements to conform them to the July 31, 2022 condensed consolidated financial statements presentation. Such reclassifications do not affect net income as previously reported. Recent Accounting Pronouncements Recent accounting pronouncements pending adoption not discussed above or in the Form 10-K for the year ended October 31, 2021 are either not applicable or will not have or are not expected to have a material impact on us. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE B - INCOME TAXES On December 22, 2017, Public Law 115-97, commonly known as the Tax Cuts and Jobs Act of 2017 (the “Tax Reform”), was enacted. The Tax Reform imposed a mandatory one-time transition tax (the “Transition Tax”) over foreign subsidiaries undistributed earnings and profits (“E&Ps”) earned prior to a date set by the statute. Based on the Company’s E&Ps, the Transition Tax was determined to be approximately $2.7 million. The Transition Tax liability must be paid over a period of eight years which started with the Company’s second quarter of fiscal year 2019. In the past, most of these E&Ps were not repatriated since such E&Ps were considered to be reinvested indefinitely in the foreign location, therefore no US tax liability was incurred unless the E&Ps were repatriated as a dividend. After December 31, 2017, the Tax Reform has established a 100% tax exemption on the foreign-source portion of dividends received attributable to E&Ps, with certain limitations. However, foreign subsidiaries earnings are subject to U.S. tax at a reduced rate of 10.5%. In June 2011, Pharma-Bio, Pharma-PR and Pharma-Serv obtained a Grant of Industrial Tax Exemption pursuant to the terms and conditions set forth in Act No. 73 of May 28, 2008 (“the Grant”) issued by the Puerto Rico Industrial Development Company (“PRIDCO”). The Grant was effective as of November 1, 2009 and covers a fifteen-year period. The Grant provides relief on various Puerto Rico taxes, including income tax, with certain limitations, for most of the activities carried on within Puerto Rico, including those that are for services to parties located outside of Puerto Rico. Industrial Development Income (“IDI”) covered under the Grant are subject to a fixed income tax rate of 4%. In addition, IDI earnings distributions accumulated since November 1, 2009 are exempt from Puerto Rico earnings distribution tax. Puerto Rico operations not covered in the exempt activities of the Grant are subject to Puerto Rico income tax at a maximum tax rate of 37.5% as provided by the 1994 Puerto Rico Internal Revenue Code, as amended. The operations carried out in the United States by the Company’s subsidiaries, is taxed in the United States at a maximum regular federal income tax rate of 21%. Deferred income tax assets and liabilities are computed for differences between the consolidated financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Pharma-PR, Pharma-Serv and Scienza Labs have established an allowance against a customer account receivable which represents a potential deferred tax asset for those subsidiaries. An allowance has been provided covering the total amount of these potential deferred tax assets, including a deferred tax asset resulting from Pharma-Spain carryforward losses, since it is uncertain whether they can be used in the future. Realization of future tax benefits related to a deferred tax asset is dependent on many factors. Accordingly, the income tax benefit will be recognized when realization is determined to be more probable than not. The Company files income tax returns in the United States (federal and various states jurisdictions), Puerto Rico, Spain and Brazil. The 2017 (2016 for Puerto Rico) through 2020 tax years are open and may be subject to potential examination in one or more jurisdictions. Currently, the Company has no federal, state, Puerto Rico or foreign income tax examination. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jul. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE C – EARNINGS PER SHARE The following data shows the amounts used in the calculations of basic and diluted earnings per share. Three months ended July 31, N ine months ended July 31, 2022 2021 2022 2021 Net income available to common equity holders - used to compute basic and diluted earnings per share $ 288,034 $ 2,275,118 $ 833,305 $ 2,783,421 Weighted average number of common shares - used to compute basic earnings per share 22,952,009 23,029,215 22,996,584 23,022,950 Effect of options to purchase common stock 18,950 145,390 35,342 155,141 Weighted average number of shares - used to compute diluted earnings per share 22,970,959 23,174,605 23,031,926 23,178,091 For the three-month and nine-month periods ended July 31, 2022, options for the purchase of shares of 400,000 and 300,000 common stock, respectively, were not considered in computing diluted earnings per share because the effect was antidilutive. Options for the purchase of 80,000 shares of common stock for the three-month and nine-month periods ended July 31, 2021 were not included in computing diluted earnings per share because their effects were also antidilutive. |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 9 Months Ended |
Jul. 31, 2022 | |
EQUITY TRANSACTIONS | |
EQUITY TRANSACTIONS | NOTE D – EQUITY TRANSACTIONS On June 13, 2014, the Board of Directors of the Company authorized the Company to repurchase up to two million shares of its outstanding common stock under the Company’s Stock Repurchase Program (“Repurchase Program”). The timing, manner, price and amount of any repurchases under the Repurchase Program is at the discretion of the Company, subject to the requirements of the Securities Exchange Act of 1934, as amended, and related rules. The Repurchase Program does not oblige the Company to repurchase any shares and it may be modified, suspended or terminated at any time and for any reason. No shares will be repurchased under the Repurchase Program directly from directors or officers of the Company. To conserve cash due to the economic uncertainty caused by the coronavirus pandemic, from April 2020 to September 2021, the Company suspended purchases under the Repurchase Program. As of July 31, 2022 and October 31, 2021, a total of 448,057 and 366,754 shares of the Company’s common stock were purchased under the Repurchase Program for an aggregate amount of $436,885 and $357,272, respectively. On November 15, 2021, the Board of Directors of the Company declared a cash dividend of $0.075 per common share for shareholders of record as of the close of business on December 15, 2021. Accordingly, an aggregate dividend payment of $1,722,391 was paid on January 3, 2022. Additionally, the Board of Directors of the Company declared, on February 7, 2022, a cash dividend of $0.075 per common share. This dividend, for an aggregate amount of $1,724,204, was paid on March 15, 2022 to shareholders of record as of the close of business on February 25, 2022. |
SEGMENT DISCLOSURES
SEGMENT DISCLOSURES | 9 Months Ended |
Jul. 31, 2022 | |
SEGMENT DISCLOSURES | |
SEGMENT DISCLOSURES | NOTE E - SEGMENT DISCLOSURES The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision maker to determine resource allocation and assess performance. Each reportable segment is managed by its own management team and reports to executive management. The Company has three reportable segments: (i) Puerto Rico technical compliance consulting, (ii) United States technical compliance consulting, and (iii) Europe technical compliance consulting. These reportable segments provide services primarily to the pharmaceutical, chemical, medical device and biotechnology industries in their respective markets. The following table presents information about the reported revenue from services and earnings from operations of the Company for the three-month and nine-month periods ended on July 31, 2022 and 2021. There is no intersegment revenue for the mentioned periods. Corporate expenses that support the operating units have been allocated to the segments. Asset information by reportable segment is not presented, since the Company does not produce such information internally, nor does it use such data to manage its business. Three months ended July 31, Nine months ended July 31, 2022 2021 2022 2021 REVENUES: Puerto Rico consulting $ 2,982,774 $ 3,749,071 $ 9,420,588 $ 10,861,147 United States consulting 1,105,870 622,669 3,518,556 1,546,889 Europe consulting 648,916 579,793 1,780,723 1,785,115 Other segment 36,543 36,376 40,658 324,733 Total consolidated revenues $ 4,774,103 $ 4,987,909 $ 14,760,525 $ 14,517,884 INCOME (LOSS) BEFORE TAXES: Puerto Rico consulting $ 163,566 $ 2,011,030 $ 323,281 $ 2,159,988 United States consulting (30,843 ) 149,837 170,307 135,952 Europe consulting 190,924 154,937 506,608 534,981 Other segment (7,825 ) (2,416 ) (42,877 ) 89,859 Total consolidated income before taxes $ 315,822 $ 2,313,388 $ 957,319 $ 2,920,780 For the three and nine months ended July 31, 2021, consolidated income before taxes include the forgiveness of principal and accrued interest of SBA Loans for the Puerto Rico and United States markets of approximately $1.9 and $0.1 million, respectively. Long lived assets (property and equipment) as of July 31, 2022 and October 31, 2021, and related depreciation and amortization expense for the three and nine months ended July 31, 2022 and 2021, were concentrated in the corporate headquarters in Puerto Rico. Accordingly, depreciation expense and acquisition of property and equipment, as presented in the statements of cash flows are mainly related to the corporate headquarters. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 9 Months Ended |
Jul. 31, 2022 | |
CONCENTRATIONS OF RISK | |
CONCENTRATIONS OF RISK | NOTE F - CONCENTRATIONS OF RISK Cash and cash equivalents The Company’s domestic cash and cash equivalents consist of cash deposits in FDIC insured banks (substantially covered by FDIC insurance by the spread of deposits in multiple FDIC insured banks), a money market obligations trust registered under the US Investment Company Act of 1940, as amended, and U.S. Treasury securities with maturities of three months or less. In the foreign markets we serve, we also maintain cash deposits in foreign banks, which have no specific insurance. No losses have been experienced or are expected on these accounts. Accounts receivable and revenues Except for a specific customer account receivable disclosed in Note A, management deems all other of the Company’s accounts receivable to be fully collectible, and, as such, does not maintain any other allowances for uncollectible receivables. The Company's revenues, and the related receivables, are concentrated in the pharmaceutical industry in Puerto Rico, the United States, Spain and Brazil. Although a few customers represent a significant source of revenue, the Company’s functions are not a continuous process, accordingly, the client base for which the services are typically rendered, on a project-by-project basis, changes regularly. The Company provided a substantial portion of its services to five customers, which accounted for 10% or more of its revenues in either of the three-month and nine-month periods ended July 31, 2022 and 2021. During the three months ended July 31, 2022, revenues from these customers were 15.1%, 13.1%, 9.3%, 8.2% and 3.6%, or a total of 49.3%, as compared to the same period last year of 19.7%, 14.2%, 10.1%, 9.9%, and 6.8%, or a total of 60.7%, respectively. During the nine months ended July 31, 2022, revenues from these customers were 16.9%, 13.2%, 10.1%, 7.7% and 3.2%, or a total of 51.1%, as compared to the same period last year of 20.8%, 12.7%, 7.8%, 10.0% and 10.4%, or a total of 61.7%, respectively. On July 31, 2022, amounts due from these customers represented 37.4% of the Company’s total accounts receivable balance. This customer information is based on revenues earned from said customers at the segment level because in management’s opinion contracts by segments are totally independent of each other, and therefore such information is more meaningful to the reader. At the global level, five global groups of affiliated companies accounted for 10% or more of its revenues in either of the three-month and nine-month periods ended July 31, 2022 and 2021. During the three months ended July 31, 2022, aggregate revenues from these global groups of affiliated companies were 15.1%, 13.1%, 9.3%, 8.2%, and 7.3%, or a total of 53.0%, as compared to the same period last year for 19.7%, 14.2%, 10.1%, 9.9%, and 7.4%, or a total of 61.3%, respectively. During the nine months ended July 31, 2022, aggregate revenues from these global group of affiliated companies were 16.9%, 13.2%, 10.1%, 7.7% and 6.7%, or a total of 54.6%, as compared to the same period last year for 20.8%, 12.7%, 7.8%, 10.0% and 12.1%, or a total of 63.4%, respectively. On July 31, 2022, amounts due from these global groups of affiliated companies represented 41.5% of total accounts receivable balance. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 31, 2022 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Consolidation | The accompanying condensed consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Segments | The Company operates in three reportable business segments: (i) Puerto Rico technical compliance consulting, (ii) United States technical compliance consulting, and (iii) Europe technical compliance consulting. Accordingly, the accompanying condensed consolidated financial statements are presented to show these three reportable segments. |
Use of Estimates | The preparation of condensed consolidated 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from these estimates. |
Fair Value of Financial Instruments | The carrying value of the Company’s financial instruments, cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, are considered reasonable estimates of fair value due to their liquidity or short-term nature. |
Revenue Recognition | The Company records revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers. We evaluate our revenue contracts with customers based on the five-step model under ASC 606: (i) Identify the contract with the customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to separate performance obligations; and (v) Recognize revenue when (or as) each performance obligation is satisfied. Revenue is primarily derived from: (1) time and material contracts (representing approximately 99% of total revenues), and (2) short-term fixed-fee contracts or "not to exceed" contracts (representing approximately 1% of total revenues). Time and material contracts are typically based on the number of hours worked at contractually agreed upon rates. These service contracts relate to work which have no alternative use and for which the Company has an enforceable right to payment for the work completed to date. As a result, revenue is recognized over time when or as the Company transfers control of the promised products or services (known as performance obligations) to its customers. Revenue for short term fixed fee contracts or “not to exceed” contracts is recognized similarly, except that certain milestones also have to be reached before revenue is recognized. If the Company determines that a contract will result in a loss, the Company recognizes the estimated loss in the period in which such determination is made. |
Cash Equivalents | For purposes of the consolidated statements of cash flows, cash equivalents include investments in a money market obligations trust that is registered under the U.S. Investment Company Act of 1940, as amended, and liquid investments with original maturities of three months or less. |
Accounts Receivable | Accounts receivable are recorded at their estimated realizable value. Accounts are deemed past due when payment has not been received within the stated time period. The Company’s policy is to review individual past due amounts periodically and write off amounts for which all collection efforts are deemed to have been exhausted. Due to the nature of the Company’s customers, bad debts are mainly accounted for using the direct write-off method whereby an expense is recognized only when a specific balance is determined to be uncollectible in full. The effect of using this method approximates that of the allowance method. However, in the event the Company determines that the collectability of any account receivable reaches a certain uncertainty threshold, the Company will provide an allowance for doubtful account to reduce said balance. As of October 31, 2021 the Company provided an allowance of approximately $5.2 million, to cover the full balance of a customer account receivable. Nevertheless, the Company continues to monitor this account and actively seek full payment from this customer. |
Income Taxes | The Company follows an asset and liability approach method of accounting for income taxes. This method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities are adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. The Company follows guidance from the Financial Accounting Standards Board (“FASB”) related to Accounting for Uncertainty in Income Taxes, |
Leases | The Company follows accounting standards issued by the FASB for the accounting and disclosure of leases. Under those standards, assets and liabilities that arise from leases are recognized on the balance sheet, and the leases are categorized at their inception as either operating or finance leases. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments under the lease. Lease recognition occurs at the commencement date, and lease liability amounts are based on the present value of lease payments made during the lease term. |
Property and Equipment | Owned property and equipment are stated at cost. Vehicles under finance leases are stated at the lower of fair market value or net present value of the minimum lease payments at the inception of the leases. Depreciation of owned assets is provided for, when placed in service, in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, using straight-line basis. Assets under finance leases are amortized over the lease term. While expenditures for repairs and maintenance are expensed when incurred. As of July 31, 2022 and October 31, 2021, the accumulated depreciation amounted to $576,691 and $538,384, respectively. |
Impairment of Long-Lived Assets | The Company evaluates for impairment its long-lived assets to be held and used, and long-lived assets to be disposed of, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Based on management estimates, no impairment of the long-lived assets was present as of July 31, 2022 and October 31, 2021. |
Stock-based Compensation | Stock-based compensation expense is recognized in the consolidated financial statements based on the fair value of the awards granted. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of awards that will be forfeited. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model at the grant date, while for restricted stock units the fair market value of the units is determined by Company’s share market value at grant date. Excess tax benefits related to stock-based compensation are reflected as cash flows from financing activities rather than cash flows from operating activities. The Company has not recognized such cash flows from financing activities since there has been no tax benefit related to the stock-based compensation. |
Earnings Per Share of Common Stock | Basic earnings per share of common stock is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding. Diluted earnings per share includes the dilution of common stock equivalents, which include principally shares that may be issued upon the exercise of warrants, stock option and restricted stock unit awards. The diluted weighted average shares of common stock outstanding were calculated using the treasury stock method for the respective periods. |
Foreign Operations | The functional currency of the Company’s foreign subsidiaries is its local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income. The Company’s intercompany accounts are typically denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded as a cumulative translation adjustment in stockholders’ equity and as a component of comprehensive income, while gains and losses resulting from the remeasurement of intercompany receivables from those international subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statements of operations. |
Subsequent Events | The Company has evaluated subsequent events through the filing date of this report. The Company has determined that there are no events occurring in this period that required disclosure or adjustment. |
Reclassifications | Certain reclassifications have been made to the July 31, 2021 condensed consolidated financial statements to conform them to the July 31, 2022 condensed consolidated financial statements presentation. Such reclassifications do not affect net income as previously reported. |
Recent Accounting Pronouncements | Recent accounting pronouncements pending adoption not discussed above or in the Form 10-K for the year ended October 31, 2021 are either not applicable or will not have or are not expected to have a material impact on us. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
EARNINGS PER SHARE | |
Schedule of calculations of basic and diluted earnings per share | Three months ended July 31, N ine months ended July 31, 2022 2021 2022 2021 Net income available to common equity holders - used to compute basic and diluted earnings per share $ 288,034 $ 2,275,118 $ 833,305 $ 2,783,421 Weighted average number of common shares - used to compute basic earnings per share 22,952,009 23,029,215 22,996,584 23,022,950 Effect of options to purchase common stock 18,950 145,390 35,342 155,141 Weighted average number of shares - used to compute diluted earnings per share 22,970,959 23,174,605 23,031,926 23,178,091 |
SEGMENT DISCLOSURES (Tables)
SEGMENT DISCLOSURES (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
SEGMENT DISCLOSURES | |
Schedule of segment reporting information | Three months ended July 31, Nine months ended July 31, 2022 2021 2022 2021 REVENUES: Puerto Rico consulting $ 2,982,774 $ 3,749,071 $ 9,420,588 $ 10,861,147 United States consulting 1,105,870 622,669 3,518,556 1,546,889 Europe consulting 648,916 579,793 1,780,723 1,785,115 Other segment 36,543 36,376 40,658 324,733 Total consolidated revenues $ 4,774,103 $ 4,987,909 $ 14,760,525 $ 14,517,884 INCOME (LOSS) BEFORE TAXES: Puerto Rico consulting $ 163,566 $ 2,011,030 $ 323,281 $ 2,159,988 United States consulting (30,843 ) 149,837 170,307 135,952 Europe consulting 190,924 154,937 506,608 534,981 Other segment (7,825 ) (2,416 ) (42,877 ) 89,859 Total consolidated income before taxes $ 315,822 $ 2,313,388 $ 957,319 $ 2,920,780 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Jul. 01, 2022 | Oct. 31, 2021 |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Accumulated depreciation | $ 576,691 | $ 538,384 |
Accounts receivable from customer | $ 52,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Dec. 22, 2017 | |
PRIDCO [Member] | ||
Puerto Rico tax holiday derived from PRIDCO Grant tax rate | 37.50% | |
United States federal income tax rate | 21% | |
Fixed income tax rate | 4% | |
Common Stock | ||
U.S. tax reduced rate | 10.50% | |
Transition tax | $ 2.7 | |
Established tax reform | 100% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
EARNINGS PER SHARE | ||||
Net income available to common equity holders - used to compute basic and diluted earnings per share | $ 288,034 | $ 2,275,118 | $ 833,305 | $ 2,783,421 |
Weighted average number of common shares - used to compute basic earnings per share | 22,952,009 | 23,029,215 | 22,996,584 | 23,022,950 |
Effect of options to purchase common stock | 18,950 | 145,390 | 35,342 | 155,141 |
Weighted average number of shares - used to compute diluted earnings per share | 22,970,959 | 23,174,605 | 23,031,926 | 23,178,091 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - Employee Stock Option [Member] - shares | 3 Months Ended | 9 Months Ended |
Jul. 31, 2021 | Jul. 31, 2022 | |
Antidilutive securities excluded from computation of earnings per share | 80,000 | 300,000 |
Purchase of shares common stock | 400,000 |
EQUITY TRANSACTIONS (Details Na
EQUITY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Mar. 15, 2022 | Feb. 07, 2022 | Jan. 03, 2022 | Nov. 15, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Stockholders' equity | |||||||||
Shares purchased under Repurchase Program | 448,057 | 448,057 | 366,754 | ||||||
Cash dividend, per share | $ 0.075 | $ 0.075 | |||||||
Shares purchased under Repurchase Program, amount | $ 436,885 | $ 436,885 | $ 357,272 | ||||||
Dividend paid | $ 1,724,204 | $ 1,722,391 | $ 0 | $ 0 | $ 3,446,595 | $ 1,727,364 |
SEGMENT DISCLOSURES (Details)
SEGMENT DISCLOSURES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Total consolidated revenues | $ 4,774,103 | $ 4,987,909 | $ 14,760,525 | $ 14,517,884 |
Total consolidated income before taxes | 315,822 | 2,313,388 | 957,319 | 2,920,780 |
Puerto Rico Consulting | ||||
Total consolidated revenues | 2,982,774 | 3,749,071 | 9,420,588 | 10,861,147 |
Total consolidated income before taxes | 163,566 | 2,011,030 | 323,281 | 2,159,988 |
United States Consulting | ||||
Total consolidated revenues | 1,105,870 | 622,669 | 3,518,556 | 1,546,889 |
Total consolidated income before taxes | (30,843) | 149,837 | 170,307 | 135,952 |
Europe Consulting | ||||
Total consolidated revenues | 648,916 | 579,793 | 1,780,723 | 1,785,115 |
Total consolidated income before taxes | 190,924 | 154,937 | 506,608 | 534,981 |
Other Segment | ||||
Total consolidated revenues | 36,543 | (2,416) | 40,658 | 324,733 |
Total consolidated income before taxes | $ (7,825) | $ 36,376 | $ (42,877) | $ 89,859 |
SEGMENT DISCLOSURES (Details Na
SEGMENT DISCLOSURES (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2021 | Jul. 31, 2021 | |
SEGMENT DISCLOSURES | ||
Principal and accrued interest, SBA Loans | $ 1.9 | $ 0.1 |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Accounts Receivable from global groups of affiliated | 41.50% | 41.50% | ||
Accounts Receivable from major customers | 37.40% | 37.40% | ||
Major Customer A | ||||
Revenue from major customers | 15.10% | 19.70% | 16.90% | 20.80% |
Major Customer B | ||||
Revenue from major customers | 13.10% | 14.20% | 13.20% | 12.70% |
Major Customer C | ||||
Revenue from major customers | 9.30% | 10.10% | 10.10% | 7.80% |
Major Customer D | ||||
Revenue from major customers | 8.20% | 9.90% | 7.70% | 10% |
Global Group E | ||||
Revenue from major customers | 7.30% | 7.40% | 6.70% | 12.10% |
Major Customer Total | ||||
Revenue from major customers | 49.30% | 60.70% | 51.10% | 61.70% |
Major Customer E | ||||
Revenue from major customers | 3.60% | 6.80% | 3.20% | 10.40% |
Global Group A | ||||
Revenue from major customers | 15.10% | 19.70% | 16.90% | 20.80% |
Global Group B | ||||
Revenue from major customers | 13.10% | 14.20% | 13.20% | 12.70% |
Global Group C | ||||
Revenue from major customers | 9.30% | 10.10% | 10.10% | 7.80% |
Global Group D | ||||
Revenue from major customers | 8.20% | 9.90% | 7.70% | 10% |
Global Group Total | ||||
Revenue from major customers | 53% | 61.30% | 54.60% | 63.40% |