Pharma-Bio Serv (PBSV) 10-Q 14 Sep 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jul. 31, 2023	Sep. 08, 2023
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, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		22,963,451
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 Address Address Line 1	Pharma-Bio Serv
Entity Address Address Line 2	# 6 Road 696
Entity Address City Or Town	Dorado
Entity Address Country	PR
Entity Address Postal Zip Code	00646
City Area Code	787
Local Phone Number	278-2709
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jul. 31, 2023	Oct. 31, 2022
Current assets
Cash and cash equivalents	$ 2,869,584	$ 14,462,729
Marketable securities	11,714,596	0
Accounts receivable	4,631,107	4,982,500
Prepaids and other assets	515,327	498,374
Total current assets	19,730,614	19,943,603
Property and equipment, net	41,821	73,684
Operating lease right-of-use	394,003	502,685
Other assets	130,161	130,874
Total assets	20,296,599	20,650,846
Current liabilities
Current operating lease liabilities	149,441	140,855
Accounts payable and accrued expenses	1,679,846	1,629,600
Current portion of US Tax Reform Transition Tax and income taxes payable	620,995	337,264
Total current liabilities	2,450,282	2,107,719
US Tax Reform Transition Tax payable	1,427,560	1,639,048
Long-term operating lease liabilities	233,276	346,509
Total liabilities	4,111,118	4,093,276
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; 23,512,880 and 23,457,515 shares issued, and 22,964,251 and 22,943,486 shares outstanding at July 31, 2023 and October 31, 2022, respectively	2,351	2,346
Additional paid-in capital	1,596,238	1,551,838
Retained earnings	14,900,974	15,267,470
Accumulated other comprehensive income	221,706	238,152
Stockholders equity before treasury stock	16,721,269	17,059,806
Treasury stock, at cost; 548,629 and 514,029 common shares held at July 31, 2023 and October 31, 2022, respectively	(535,788)	(502,236)
Total stockholders' equity	16,185,481	16,557,570
Total liabilities and stockholders' equity	$ 20,296,599	$ 20,650,846

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2023	Oct. 31, 2022
Condensed Consolidated Balance Sheets
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	23,512,880	23,457,515
Common stock, outstanding	22,964,251	22,943,486
Treasury stock, shares	548,629	514,029

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Condensed Consolidated Statements of Operations (Unaudited)
REVENUES	$ 4,577,167	$ 4,774,103	$ 13,378,665	$ 14,760,525
COST OF SERVICES	3,027,160	3,461,789	9,242,059	10,987,722
GROSS PROFIT	1,550,007	1,312,314	4,136,606	3,772,803
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	1,089,541	942,809	2,967,430	2,766,820
INCOME FROM OPERATIONS	460,466	369,505	1,169,176	1,005,983
OTHER INCOME (EXPENSE), NET	126,985	(53,683)	566,146	(48,664)
INCOME BEFORE INCOME TAX	587,451	315,822	1,735,322	957,319
INCOME TAX EXPENSE	61,209	27,788	377,994	124,014
NET INCOME	$ 526,242	$ 288,034	$ 1,357,328	$ 833,305
BASIC AND DILUTED EARNINGS PER COMMON SHARE	$ 0.023	$ 0.013	$ 0.059	$ 0.036
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC	22,965,496	22,952,009	22,962,113	22,996,584
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED	22,984,558	22,970,959	22,991,372	23,031,926

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Consolidated Statements of Comprehensive Income (Unaudited)
NET INCOME	$ 526,242	$ 288,034	$ 1,357,328	$ 833,305
Foreign currency translation:
Net unrealized gain (loss)	(42,466)	(103,357)	151,785	(179,989)
Intercompany balances foreign exchange settlement, included in net income	17,857	64,153	(168,231)	64,153
TOTAL OTHER COMPREHENSIVE LOSS	(24,609)	(39,204)	(16,446)	(115,836)
COMPREHENSIVE INCOME	$ 501,633	$ 248,830	$ 1,340,882	$ 717,469

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance, shares at Oct. 31, 2021			23,433,341
Balance, amount at Oct. 31, 2021	$ 18,914,131	$ 0	$ 2,343	$ 1,480,193	$ 17,707,384	$ 144,455	$ (420,244)
STOCK-BASED COMPENSATION	43,200	0	$ 0	43,200	0	0	0
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS, shares			24,174
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS, amount	0	0	$ 3	0	(3)	0	0
PURCHASE OF TREASURY STOCK (70,903 SHARES)	(79,613)	0	0	0	0	0	(79,613)
NET INCOME	833,305	0	0	0	833,305	0	0
OTHER COMPREHENSIVE LOSS, NET OF TAX	(115,836)	0	0	0	0	(115,836)	0
CASH DIVIDENDS ($0.075 PER COMMON SHARE AT RECORD DATE)	(3,446,595)	0	$ 0	0	(3,446,595)	0	0
Balance, shares at Jul. 31, 2022			23,457,515
Balance, amount at Jul. 31, 2022	16,148,592	0	$ 2,346	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	0	$ 2,346	1,508,994	14,806,057	67,823	(490,530)
STOCK-BASED COMPENSATION	14,399	0	0	14,399	0	0	0
PURCHASE OF TREASURY STOCK (70,903 SHARES)	(9,327)	0	0	0	0	0	(9,327)
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
Balance, shares at Jul. 31, 2022			23,457,515
Balance, amount at Jul. 31, 2022	16,148,592	0	$ 2,346	1,523,393	15,094,091	28,619	(499,857)
Balance, shares at Oct. 31, 2022			23,457,515
Balance, amount at Oct. 31, 2022	16,557,570	0	$ 2,346	1,551,838	15,267,470	238,152	(502,236)
STOCK-BASED COMPENSATION	44,400	0	$ 0	44,400	0	0	0
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS, shares			55,365
ISSUANCE OF COMMON STOCK PURSUANT TO THE CASHLESS EXERCISE OF STOCK OPTIONS, amount	0	0	$ 5	0	(5)	0	0
PURCHASE OF TREASURY STOCK (70,903 SHARES)	(33,552)	0	0	0	0	0	(33,552)
NET INCOME	1,357,328	0	0	0	1,357,328	0	0
OTHER COMPREHENSIVE LOSS, NET OF TAX	(16,446)	0	0	0	0	(16,446)	0
CASH DIVIDENDS ($0.075 PER COMMON SHARE AT RECORD DATE)	(1,723,819)	0	$ 0	0	(1,723,819)	0	0
Balance, shares at Jul. 31, 2023			23,512,880
Balance, amount at Jul. 31, 2023	16,185,481	0	$ 2,351	1,596,238	14,900,974	221,706	(535,788)
Balance, shares at Apr. 30, 2023			23,512,880
Balance, amount at Apr. 30, 2023	15,674,132	0	$ 2,351	1,581,439	14,374,732	246,315	(530,705)
STOCK-BASED COMPENSATION	14,799	0	0	14,799	0	0	0
PURCHASE OF TREASURY STOCK (70,903 SHARES)	(5,083)	0	0	0	0	0	(5,083)
NET INCOME	526,242	0	0	0	526,242	0	0
OTHER COMPREHENSIVE LOSS, NET OF TAX	(24,609)	0	$ 0	0	0	(24,609)	0
Balance, shares at Jul. 31, 2023			23,512,880
Balance, amount at Jul. 31, 2023	$ 16,185,481	$ 0	$ 2,351	$ 1,596,238	$ 14,900,974	$ 221,706	$ (535,788)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 526,242	$ 288,034	$ 1,357,328	$ 833,305
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Stock-based compensation	14,799	14,399	44,400	43,200
Depreciation and amortization	11,400	12,962	40,694	38,307
Reinvested interests	(34,734)	0	(178,038)	0
Decrease (increase) in accounts receivable	380,213	652,913	453,235	(257,384)
Decrease (increase) in other assets	(112,009)	220,778	(129,860)	489,341
Increase (decrease) in liabilities	170,854	(83,233)	(5,235)	(814,403)
NET CASH PROVIDED BY OPERATING ACTIVITIES	956,765	1,105,853	1,582,524	332,366
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	0	(2,087)	(8,831)	(7,132)
Marketable securities investment, net	(6,176,052)	0	(11,536,558)	0
NET CASH PROVIDED BY INVESTING ACTIVITIES	(6,176,052)	(2,087)	(11,545,389)	(7,132)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock	(5,083)	(9,327)	(33,552)	(79,613)
Cash dividends paid to shareholders	0	0	(1,723,819)	(3,446,595)
NET CASH USED IN FINANCING ACTIVITIES	(5,083)	(9,327)	(1,757,371)	(3,526,208)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(2,500)	(19,607)	127,091	(28,542)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(5,226,870)	1,074,832	(11,593,145)	(3,229,516)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	8,096,454	13,163,997	14,462,729	17,468,345
CASH AND CASH EQUIVALENTS - END OF PERIOD	2,869,584	14,238,829	2,869,584	14,238,829
Cash paid during the period for:
Income taxes	0	0	312,155	211,813
Interest	0	0	0	0
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	0	623	15,309	22,161
Conversion of cashless exercise of options to shares of common stock and shares issued under restricted stock unit agreements	$ 0	$ 0	$ 5	$ 3

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jul. 31, 2023
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. (currently insignificant) (“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, 2022 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, 2023 are not necessarily indicative of expected results for the full 2023 fiscal year. The accompanying financial data as of July 31, 2023, and for the three-month and nine-month periods ended July 31, 2023 and 2022 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, 2022. 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 Accounting standards have established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting standards have established three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Marketable securities consist of U.S. Treasury securities, which are categorized in Level 1 and have a short-term maturity. 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 has 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 a 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, including US Treasury securities, 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 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. 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. Depreciation of owned assets are 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. Expenditures for repairs and maintenance are expensed when incurred. As of July 31, 2023 and October 31, 2022, the accumulated depreciation amounted to $630,185 and $587,089, 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, 2023 and October 31, 2022. 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 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 the 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 require disclosure or adjustment. Reclassifications Certain reclassifications have been made to the July 31, 2022 condensed consolidated financial statements to conform them to the July 31, 2023 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 Annual Report on Form 10-K for the year ended October 31, 2022, are either not applicable or will not have or are not expected to have a material impact on us.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	9 Months Ended
	Jul. 31, 2023
MARKETABLE SECURITIES
MARKETABLE SECURITIES	NOTE B – MARKETABLE SECURITIES Marketable securities consist of short-term U.S. Treasury securities with maturities over three months, which are held until maturity and accordingly, are measured at cost plus accreted interest income.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jul. 31, 2023
INCOME TAXES
INCOME TAXES	NOTE C - 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 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. Under provisions of Puerto Rico Acts 60-2019 and 73-2008, the Company has requested PRIDCO the renegotiation of the Grant for an additional term of fifteen years. 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 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. 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 2018 (2017 for Puerto Rico) through 2022 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, 2023
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE D – 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, Nine months ended July 31, 2023 2022 2023 2022 Net income available to common equity holders - used to compute basic and diluted earnings per share $ 526,242 $ 288,034 $ 1,357,328 $ 833,305 Weighted average number of common shares - used to compute basic earnings per share 22,965,496 22,952,009 22,962,113 22,996,584 Effect of options to purchase common stock 19,062 18,950 29,259 35,342 Weighted average number of shares - used to compute diluted earnings per share 22,984,558 22,970,959 22,991,372 23,031,926 For the three-month and nine-month periods ended July 31, 2023 options for the purchase of 223,350 shares of common stock were not considered in computing diluted earnings per share because their effect was antidilutive. Options for the purchase of 400,000 and 300,000 shares of common stock for the three-month and nine-month periods ended July 31, 2022, respectively, were not included in computing diluted earnings per share because their effects were also antidilutive.

EQUITY TRANSACTIONS

EQUITY TRANSACTIONS	9 Months Ended
	Jul. 31, 2023
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS	NOTE E – 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 Stock Repurchase Program (the “Repurchase Program”). The timing, manner, price and amount of any repurchases under the Repurchase Program will be 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. As of July 31, 2023 and October 31, 2022, a total of 485,657 and 451,057 shares of the Company’s common stock were purchased under the Repurchase Program for an aggregate amount of $472,816 and $439,264, respectively. On February 28, 2023, 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 March 29, 2023. Accordingly, an aggregate dividend payment of $1,723,819 was paid on April 14, 2023.

SEGMENT DISCLOSURES

SEGMENT DISCLOSURES	9 Months Ended
	Jul. 31, 2023
SEGMENT DISCLOSURES
SEGMENT DISCLOSURES	NOTE F - 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, 2023 and 2022. 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, 2023 2022 2023 2022 REVENUES: Puerto Rico consulting $ 2,004,993 $ 2,982,774 $ 6,135,456 $ 9,420,588 United States consulting 1,234,509 1,105,870 3,504,031 3,518,556 Europe consulting 1,337,665 648,916 3,732,944 1,780,723 Other segment - 36,543 6,234 40,658 Total consolidated revenues $ 4,577,167 $ 4,774,103 $ 13,378,665 $ 14,760,525 INCOME (LOSS) BEFORE TAXES: Puerto Rico consulting $ 234,073 $ 163,566 $ 288,896 $ 323,281 United States consulting 80,575 (30,843 ) 241,728 170,307 Europe consulting 281,030 190,924 1,244,253 506,608 Other segment (8,227 ) (7,825 ) (39,555 ) (42,877 ) Total consolidated income before taxes $ 587,451 $ 315,822 $ 1,735,322 $ 957,319 Long lived assets (property and equipment) as of July 31, 2023 and October 31, 2022, and related depreciation and amortization expense for the three and nine months ended July 31, 2023 and 2022, 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 related to the corporate headquarters.

CONCENTRATIONS OF RISK

CONCENTRATIONS OF RISK	9 Months Ended
	Jul. 31, 2023
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK	NOTE G - CONCENTRATIONS OF RISK Cash, Cash Equivalents and Marketable Securities The Company’s domestic cash, cash equivalents and marketable securities 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 twelve 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 nor are expected on these accounts. Accounts Receivable and Revenues The Company has established a full allowance for doubtful accounts for those accounts receivable balances for which collectability have reached a certain uncertainty threshold. Management deems all other of the Company’s accounts receivable to be fully collectible, and, as such, does not maintain any additional allowance for uncollectible receivables. The Company's revenues, and the related receivables, are concentrated in the pharmaceutical industry in Puerto Rico, the United States, Europe 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, 2023 and 2022. During the three months ended July 31, 2023, revenues from these customers were 22.1%, 11.0%, 14.7%, 5.0% and 5.5%, or a total of 58.3%, as compared to the same period last year of 0.0%, 13.1%, 8.2%, 15.1% and 9.3%, or a total of 45.7%, respectively. During the nine months ended July 31, 2023, revenues from these customers were 14.9%, 11.5%, 11.1%, 6.6% and 7.5%, or a total of 51.6%, as compared to the same period last year of 0.0%, 13.2%, 7.7%, 16.9% and 10.1%, or a total of 47.9%, respectively. For the three months ended July 31, 2023 and 2022, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 21.5%, 0.0% and 36.8%, as compared to 37.5%, 0.0% and 8.2%, respectively. For the nine months ended July 31, 2023 and 2022, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 25.6%, 0.0% and 26.0%, as compared to 40.2%, 0.0% and 7.7%, respectively. On July 31, 2023, amounts due from these customers represented 42.4% 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, six 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, 2023 and 2022. During the three months ended July 31, 2023, aggregate revenues from these global groups of affiliated companies were 22.1%, 11.0%, 9.9%, 14.7%, 5.0% and 5.5%, or a total of 68.2%, as compared to the same period last year for 0.0%, 13.1%, 6.6%, 7.7%, 16.9% and 10.1%, or a total of 54.4%, respectively. During the nine months ended July 31, 2023, aggregate revenues from these global group of affiliated companies were 14.9%, 11.5%, 11.2%, 11.1%, 6.6% and 7.5%, or a total of 62.8%, as compared to the same period last year for 0.0%, 13.2%, 6.6%, 7.7%, 16.9% and 10.1%, or a total of 54.5%, respectively. For the three months ended July 31, 2023 and 2022, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 23.0%, 8.4% and 36.8%, as compared to 43.3%, 3.4% and 7.7%, respectively. For the nine months ended July 31, 2023 and 2022, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 27.7%, 9.1% and 26.0%, as compared to 43.4%, 3.4% and 7.7%, respectively. At July 31, 2023, amounts due from these global groups of affiliated companies represented 64.6% of total accounts receivable balance.

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jul. 31, 2023
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	Accounting standards have established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting standards have established three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Marketable securities consist of U.S. Treasury securities, which are categorized in Level 1 and have a short-term maturity. 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 has 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 a 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, including US Treasury securities, 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 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.
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. Depreciation of owned assets are 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. Expenditures for repairs and maintenance are expensed when incurred. As of July 31, 2023 and October 31, 2022, the accumulated depreciation amounted to $630,185 and $587,089, 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, 2023 and October 31, 2022.
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 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 the 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 require disclosure or adjustment.
Reclassifications	Certain reclassifications have been made to the July 31, 2022 condensed consolidated financial statements to conform them to the July 31, 2023 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 Annual Report on Form 10-K for the year ended October 31, 2022, 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, 2023
EARNINGS PER SHARE
Schedule of shares used in calculations of basic and diluted earnings per share	Three months ended July 31, Nine months ended July 31, 2023 2022 2023 2022 Net income available to common equity holders - used to compute basic and diluted earnings per share $ 526,242 $ 288,034 $ 1,357,328 $ 833,305 Weighted average number of common shares - used to compute basic earnings per share 22,965,496 22,952,009 22,962,113 22,996,584 Effect of options to purchase common stock 19,062 18,950 29,259 35,342 Weighted average number of shares - used to compute diluted earnings per share 22,984,558 22,970,959 22,991,372 23,031,926

SEGMENT DISCLOSURES (Tables)

SEGMENT DISCLOSURES (Tables)	9 Months Ended
	Jul. 31, 2023
SEGMENT DISCLOSURES
Schedule of segment reporting information	Three months ended July 31, Nine months ended July 31, 2023 2022 2023 2022 REVENUES: Puerto Rico consulting $ 2,004,993 $ 2,982,774 $ 6,135,456 $ 9,420,588 United States consulting 1,234,509 1,105,870 3,504,031 3,518,556 Europe consulting 1,337,665 648,916 3,732,944 1,780,723 Other segment - 36,543 6,234 40,658 Total consolidated revenues $ 4,577,167 $ 4,774,103 $ 13,378,665 $ 14,760,525 INCOME (LOSS) BEFORE TAXES: Puerto Rico consulting $ 234,073 $ 163,566 $ 288,896 $ 323,281 United States consulting 80,575 (30,843 ) 241,728 170,307 Europe consulting 281,030 190,924 1,244,253 506,608 Other segment (8,227 ) (7,825 ) (39,555 ) (42,877 ) Total consolidated income before taxes $ 587,451 $ 315,822 $ 1,735,322 $ 957,319

ORGANIZATION AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Jul. 31, 2023	Oct. 31, 2022
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accumulated depreciation	$ 630,185	$ 587,089

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2023	Dec. 22, 2017
U.S. tax reduced rate	10.50%
Transition tax		$ 2.7
Established tax reform	100%
Income Tax Rates [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%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
EARNINGS PER SHARE
Net income available to common equity holders - used to compute basic and diluted earnings per share	$ 526,242	$ 288,034	$ 1,357,328	$ 833,305
Weighted average number of common shares - used to compute basic earnings per share	22,965,496	22,952,009	22,962,113	22,996,584
Effect of options to purchase common stock	19,062	18,950	29,259	35,342
Weighted average number of shares - used to compute diluted earnings per share	22,984,558	22,970,959	22,991,372	23,031,926

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Employee Stock Option [Member]
Antidilutive securities excluded from computation of earnings per share	223,350	400,000	223,350	300,000

EQUITY TRANSACTIONS (Details Na

EQUITY TRANSACTIONS (Details Narrative) - USD ($)	Jul. 31, 2023	Apr. 14, 2023	Feb. 28, 2023	Oct. 31, 2022
EQUITY TRANSACTIONS
Shares purchased under Repurchase Program	485,657			451,057
Shares purchased under Repurchase Program, amount	$ 472,816			$ 439,264
Dividend declared per common share			$ 0.075
Dividend paid		$ 1,723,819

SEGMENT DISCLOSURES (Details)

SEGMENT DISCLOSURES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Total consolidated revenues	$ 4,577,167	$ 4,774,103	$ 13,378,665	$ 14,760,525
Total consolidated income before taxes	587,451	315,822	1,735,322	957,319
Other Segment
Total consolidated revenues	0	36,543	6,234	40,658
Total consolidated income before taxes	(8,227)	(7,825)	(39,555)	(42,877)
Europe
Total consolidated revenues	1,337,665	648,916	3,732,944	1,780,723
Total consolidated income before taxes	281,030	190,924	1,244,253	506,608
Puerto Rico
Total consolidated revenues	2,004,993	2,982,774	6,135,456	9,420,588
Total consolidated income before taxes	234,073	163,566	288,896	323,281
United States
Total consolidated revenues	1,234,509	1,105,870	3,504,031	3,518,556
Total consolidated income before taxes	$ 80,575	$ (30,843)	$ 241,728	$ 170,307

CONCENTRATION OF RISKS (Details

CONCENTRATION OF RISKS (Details Narrative)	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Europe
Revenue from major customers	36.80%	8.20%	26%	7.70%
Amount due from major customers as percentage of accounts receivable	36.80%	7.70%	26%	7.70%
Puerto Rico
Revenue from major customers	21.50%	37.50%	25.60%	40.20%
Amount due from major customers as percentage of accounts receivable	23%	43.30%	27.70%	43.40%
United States
Revenue from major customers	0%	0%	0%	0%
Amount due from major customers as percentage of accounts receivable	8.40%	3.40%	9.10%	3.40%
Major Customer A
Revenue from major customers	22.10%	0%	14.90%	0%
Major Customer B
Revenue from major customers	11%	13.10%	11.50%	13.20%
Major Customer C
Revenue from major customers	14.70%	8.20%	11.10%	7.70%
Major Customer D
Revenue from major customers	5%	15.10%	6.60%	16.90%
Major Customer Total
Revenue from major customers	58.30%	45.70%	51.60%	47.90%
Amount due from major customers as percentage of accounts receivable			42.40%
Global Customer A
Revenue from major customers	22.10%	0%	14.90%	0%
Global Customer B
Revenue from major customers	11%	13.10%	11.50%	13.20%
Global Customer C
Revenue from major customers	9.90%	6.60%	11.20%	6.60%
Global Customer D
Revenue from major customers	14.70%	7.70%	11.10%	7.70%
Global Customer Total
Revenue from major customers	68.20%	54.40%	62.80%	54.50%
Amount due from major customers as percentage of accounts receivable			64.60%
Global Customer E
Revenue from major customers	5%	16.90%	6.60%	16.90%
Major Customer E
Revenue from major customers	5.50%	9.30%	7.50%	10.10%
Global Customer F
Revenue from major customers	5.50%	10.10%	7.50%	10.10%