Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2017 | Jun. 14, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Coda Octopus Group, Inc. | |
Entity Central Index Key | 1,334,325 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,102,192 | |
Trading Symbol | COGI | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2017 | Oct. 31, 2016 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 5,735,414 | $ 5,601,767 |
Restricted Cash | 13,694 | |
Accounts Receivables, Net | 2,662,397 | 3,274,204 |
Inventory | 2,642,655 | 2,598,925 |
Unbilled Receivables | 4,189,052 | 3,406,693 |
Other Current Assets | 425,120 | 140,954 |
Prepaid Expenses | 254,630 | 112,884 |
Total Current Assets | 15,909,268 | 15,149,121 |
Fixed Assets | ||
Property and Equipment, net | 5,515,431 | 3,840,500 |
Other Assets | ||
Other Assets | 10,471 | 96,374 |
Goodwill and Other Intangibles, net | 3,722,875 | 3,749,525 |
Total Other Assets | 3,733,346 | 3,845,899 |
Total Assets | 25,158,045 | 22,835,520 |
CURRENT LIABILITIES | ||
Accounts Payable, trade | 1,524,527 | 1,396,475 |
Accrued Expenses and Other Current Liabilities | 625,822 | 794,067 |
Loans and Note Payable, current | 2,163,197 | 846,994 |
Deferred Revenues | 273,998 | 464,541 |
Total Current Liabilities | 4,587,544 | 3,502,077 |
LONG-TERM LIABILITIES | ||
Deferred Revenue – Long Term | 53,872 | |
Loans and Note Payable, long term | 6,836,803 | 9,178,930 |
Total Long Term Liabilities | 6,890,675 | 9,178,930 |
Total Liabilities | 11,478,219 | 12,681,007 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, Series C, $.001 par value; 5,000,000 shares authorized, 1,000 and 1,100 issued and outstanding, as of April 30, 2017 and October 31, 2016, respectively | 1 | 1 |
Common stock, $.001 par value; 150,000,000 shares authorized, 9,102,192 and 9,094,156 shares issued and outstanding as of April 30, 2017 and October 31, 2016, respectively | 9,102 | 9,094 |
Additional paid-in capital | 52,715,947 | 52,805,455 |
Accumulated other comprehensive (loss) | (1,569,550) | (2,337,437) |
Accumulated deficit | (37,475,674) | (40,322,600) |
Total Stockholders' Equity | 13,679,826 | 10,154,513 |
Total Liabilities and Stockholders' Equity | $ 25,158,045 | $ 22,835,520 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2017 | Oct. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Series C Preferred stock, par value | $ 0.001 | $ 0.001 |
Series C Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series C Preferred stock, shares issued | 1,000 | 1,100 |
Series C Preferred stock, shares outstanding | 1,000 | 1,100 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 9,102,192 | 9,094,156 |
Common stock, shares outstanding | 9,102,192 | 9,094,156 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Income Statement [Abstract] | ||||
Net Revenues | $ 5,278,758 | $ 5,745,975 | $ 10,636,961 | $ 10,521,814 |
Cost of Revenues | 2,013,940 | 2,236,851 | 3,996,985 | 4,778,000 |
Gross Profit | 3,264,818 | 3,509,124 | 6,639,976 | 5,743,814 |
OPERATING EXPENSES | ||||
Research & Development | 247,758 | 186,991 | 498,988 | 415,291 |
Selling, General & Administrative | 1,639,892 | 1,603,554 | 3,045,780 | 3,163,093 |
Total Operating Expenses | 1,887,650 | 1,790,545 | 3,544,768 | 3,578,384 |
INCOME FROM OPERATIONS | 1,377,168 | 1,718,579 | 3,095,208 | 2,165,430 |
OTHER INCOME (EXPENSE) | ||||
Other Income | 86,643 | 33,770 | 136,059 | 105,662 |
Interest Expense | (188,847) | (169,816) | (384,341) | (399,038) |
Total Other Expense | (102,204) | (136,046) | (248,282) | (293,376) |
NET INCOME BEFORE INCOME TAXES | 1,274,964 | 1,582,533 | 2,846,926 | 1,872,054 |
INCOME TAX (EXPENSE) BENEFIT | ||||
NET INCOME | $ 1,274,964 | $ 1,582,533 | $ 2,846,926 | $ 1,872,054 |
NET INCOME PER SHARE: | ||||
Basic | $ 0.14 | $ 0.23 | $ 0.31 | $ 0.28 |
Diluted | $ 0.14 | $ 0.18 | $ 0.31 | $ 0.21 |
WEIGHTED AVERAGE SHARES: | ||||
Basic | 9,102,192 | 6,741,330 | 9,101,837 | 6,741,330 |
Diluted | 9,302,192 | 8,941,330 | 9,301,837 | 8,941,330 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustment | $ 346,727 | $ 299,876 | $ 767,887 | $ (772,201) |
Total Other Comprehensive Income (Loss) | 346,727 | 299,876 | 767,887 | (772,201) |
COMPREHENSIVE INCOME | $ 1,621,691 | $ 1,882,409 | $ 3,614,813 | $ 1,099,853 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Apr. 30, 2017 - USD ($) | Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Balance at Oct. 31, 2016 | $ 1 | $ 9,094 | $ 52,805,455 | $ (2,337,437) | $ (40,322,600) | $ 10,154,513 |
Balance, shares at Oct. 31, 2016 | 1,100 | 9,094,156 | ||||
Stock Issued to Consultant | $ 8 | 10,492 | 10,500 | |||
Stock Issued to Consultant, shares | 8,036 | |||||
Redemption of Series C Preferred Stock | $ (1) | (1,099,999) | (1,100,000) | |||
Redemption of Series C Preferred Stock, shares | (1,100) | |||||
Issuance of Series C Preferred Stock | $ 1 | 999,999 | 1,000,000 | |||
Issuance of Series C Preferred Stock, shares | 1,000 | |||||
Foreign currency translation adjustment | 767,887 | 767,887 | ||||
Net Income | 2,846,926 | 2,846,926 | ||||
Balance at Apr. 30, 2017 | $ 1 | $ 9,102 | $ 52,715,947 | $ (1,569,550) | $ (37,475,674) | $ 13,679,826 |
Balance, shares at Apr. 30, 2017 | 1,000 | 9,102,192 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 2,846,926 | $ 1,872,054 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 396,361 | 306,786 |
Stock compensation | 10,500 | |
Realized gain on the sale of fixed assets | (21,076) | |
(Increase) decrease in operating assets: | ||
Accounts receivable | 611,806 | (21,676) |
Inventory | (43,731) | 516,521 |
Prepaid expenses | (141,746) | (84,511) |
Unbilled receivables | (782,358) | 98,943 |
Other current assets | (284,167) | 25,159 |
Deferred tax asset | 85,904 | (2,357) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | (40,190) | 166,420 |
Deferred revenues | (136,671) | (24,140) |
Net Cash Provided by Operating Activities | 2,501,558 | 2,853,199 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (2,350,566) | (747,616) |
Restricted cash | 13,695 | (151) |
Proceeds from the sale of fixed assets | 327,000 | |
Net Cash (Used in) by Investing Activities | (2,009,871) | (747,767) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds (Payments) - loans and notes payable | (25,927) | (252,581) |
Redemption of Series C preferred stock | (1,100,000) | |
Net Cash Used in Financing Activities | (1,125,927) | (252,581) |
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH | 767,887 | (772,201) |
NET INCREASE IN CASH | 133,647 | 1,080,650 |
CASH AT THE BEGINNING OF THE PERIOD | 5,601,767 | 6,310,694 |
CASH AT THE END OF THE PERIOD | 5,735,414 | 7,391,344 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 397,091 | 425,000 |
Non-cash transactions | ||
Common stock issued for terminal conversion premium | 3,558,136 | |
Preferred stock issued for accrued interest | 1,000,000 | |
Repayment of Secured Debentures directly with proceeds of new HSBC Note payable | $ 8,000,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Apr. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared based upon U.S. Securities and Exchange Commission rules that permit reduced disclosure for interim periods. Therefore, they do not include all information and footnote disclosures necessary for a complete presentation of Coda Octopus Group, Inc.’s financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. Coda Octopus Group, Inc. (the “Company,” “Coda Octopus,” “we,” or “us”) filed audited consolidated financial statements as of and for the fiscal years ended October 31, 2016 and 2015 which included all information and notes necessary for such complete presentation in conjunction with its registration statement on Form 10 (the “Form 10”). The results of operations for the interim period ended April 30, 2017 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended October 31, 2016, which are contained in the Form 10. The accompanying unaudited interim consolidated financial statements contain all adjustments (consisting of normal recurring items) which are, in the opinion of management, necessary for a fair statement of the Company’s financial position as of April 30, 2017 and the results of operations, comprehensive income and cash flows for the interim periods ended April 30, 2017 and 2016. The unaudited interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the US dollar as the reporting currency for financial reporting. The financial position and results of operations of the Company’s UK-based operations are measured using the British Pound Sterling, Australian based operations are measured using Australian Dollars and Norwegian based operations are measured using Norwegian Kroner as the functional currencies. Foreign currency translation gains and losses are recorded as a change in other comprehensive income. Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of our foreign operations are also included in other comprehensive income. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s short term financial instruments consist of cash and cash equivalents, receivables, accounts payable and the notes payable. The Company adjusts the carrying value of financial assets and liabilities denominated in other currencies such as cash, receivables, accounts payable and the lines of credit using the appropriate exchange rates at the balance sheet date. The Company believes that the carrying values of these short term financial instruments approximate their estimated fair values. The carrying value of our long term debt approximates its fair value based on the terms and conditions which we would currently obtain. |
Foreign Currency Translation
Foreign Currency Translation | 6 Months Ended |
Apr. 30, 2017 | |
Foreign Currency [Abstract] | |
Foreign Currency Translation | NOTE 3 – FOREIGN CURRENCY TRANSLATION The financial position and results of operations of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of operations denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the weighted average exchange rates during the year. The resulting translation gains and losses on assets and liabilities are recorded in accumulated other comprehensive income (loss), and are excluded from net income until realized through a sale or liquidation of the investment. |
Inventory
Inventory | 6 Months Ended |
Apr. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 4 - INVENTORY Inventory is stated at the lower of cost (first-in first-out method) or market. Inventory consisted of the following components: April 30, 2017 October 31, 2016 Raw materials and parts $ 1,881,044 $ 1,734,798 Work in progress 267,409 88,682 Demo goods 294,752 324,752 Finished goods 199,450 450,693 Total Inventory $ 2,642,655 $ 2,598,925 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Apr. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | NOTE 5 – OTHER CURRENT ASSETS Other current assets consisted of the following at April 30, 2017 and October 31, 2016: 2017 2016 Deposits $ 55,225 $ (349 ) Other receivables 369,895 35,543 Value added tax (VAT) receivable - 105,760 Total Other Current Assets $ 425,120 $ 140,954 |
Estimates
Estimates | 6 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Estimates | NOTE 6 – ESTIMATES The preparation of consolidated financial statements in conformity with U.S. GAAP 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 financial statements and the reported amounts of revenues including unbilled and deferred revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include costs and earnings in excess of billings, billings in excess of costs and estimated earnings and the valuation of goodwill. |
Contracts in Progress
Contracts in Progress | 6 Months Ended |
Apr. 30, 2017 | |
Contracts In Progress | |
Contracts in Progress | NOTE 7 – CONTRACTS IN PROGRESS Costs and estimated earnings in excess of billings on uncompleted contracts represent accumulated project expenses and fees which have not been invoiced to customers as of the date of the balance sheet. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $4,189,052 and $3,406,693 as of April 30, 2017 and October 31, 2016, respectively. Our Deferred Revenue of $327,870 and $464,541 as of April 30, 2017 and October 31, 2016, respectively, consists of billings in excess of costs and revenues received as part of our warranty obligations upon completing a sale – elaborated further in the last paragraph of this note. Billings in excess of cost and estimated earnings on uncompleted contracts represent project invoices billed to customers that have not been earned as of the date of the balance sheets. These amounts are stated on the balance sheets as a component of Deferred Revenue of $0 as of April 30, 2017 and October 31, 2016, respectively. Revenue received as part of sales of equipment includes a provision for warranty and is treated as deferred revenue, along with extended warranty sales, and Through Life Support, a support package offering five years hardware and software support agreements. These amounts are amortized according to the contractual period in question which is over 12 months representing the warranty or support period for the equipment sold, or 36 months or 60 months for Through Life Support obligations, according to the package purchased by our customer. The short term portions of the deferred revenues were $273,998 and $464,541 as of April 30, 2017 and October 31, 2016, respectively. The long term portions of the deferred revenues were $53,872 and $0 as of April 30, 2017 and October 31, 2016 respectively. |
Concentrations
Concentrations | 6 Months Ended |
Apr. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 8 - CONCENTRATIONS Significant Customers During the three months ended April 30, 2017, the Company had a customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $1,016,784, or 19% of net revenues during the period. Total accounts receivable from this customer at April 30, 2017 was $189,110 or 7% of accounts receivable. During the three months ended April 30, 2016, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $2,780,925, or 48% of net revenues during the period. Total accounts receivable from these customers at April 30, 2016 was $627,299 or 19% of accounts receivable. During the six months ended April 30, 2017, the Company had a customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $2,853,925, or 27% of net revenues during the period. Total accounts receivable from this customer at April 30, 2017 was $189,110 or 7% of accounts receivable. During the six months ended April 30, 2016, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $3,893,432, or 37% of net revenues during the period. Total accounts receivable from these customers at April 30, 2016 was $627,299 or 19% of accounts receivable. |
Loans and Notes Payable
Loans and Notes Payable | 6 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Loans and Notes Payable | NOTE 9 – LOANS AND NOTES PAYABLE Loans and notes payable consisted of the following at April 30, 2017 and October 31, 2016: 2017 2016 On February 21, 2008 the Company issued a convertible senior secured debenture with a face value of $12 million (“Secured Debentures”). The Secured Debentures under its original terms matured on February 21, 2015 and has been subject to a series of extensions, most recently to May 1, 2018. The Secured Debentures accrued annual interest of 8.5%. On April 28, 2017, the Company repaid in full all outstanding amounts due under the Secured Debentures. The Secured Debentures were paid using the $8,000,000 proceeds of the recently concluded Secured Loan from HSBC Bank NA (see below for further information) and the accrued and unpaid interest under the Secured Debentures of approximately $1,133,261 was satisfied through the issuance to the holder of the Secured Debentures of 1,000 shares of Series C Convertible Preferred Stock, par value $0.001, with a stated value of $1,000 each (the “Preferred Stock”). The Company paid the remaining balance in cash. $ - $ 9,744,123 Secured note payable to HSBC with interest payable at 4.56% per annum on the 28th day of each month and the Company is required to make monthly principal and interest payment of $149,350. Additionally, within 150 days of the end of each fiscal year the Company is required to pay an additional amount of $700,000 which reduces the principal outstanding under the Secured Loan. The maturity date is April 28, 2022. However, based on the payment scheduled in the Loan Agreement, it is expected that the Loan will be repaid in full in approximately 45 months. 8,000,000 One of the subsidiaries has an unsecured working capital loan from the CEO of the Group for working capital. The note is due on May 31st, 2018 and carries an interest rate of 4.5% 1,000,000 - In the fiscal year ended 2016, the Company had a 10 year secured mortgage for $527,675, secured by a building in the UK that required monthly principal payments of $4,018 along with interest at 2.75%, and was due to mature in October 2023. The conversion rate varied according to exchange rates fluctuations. This mortgage was secured by our building, located in Portland UK. This mortgage was paid in full on December 13, 2016. - 281,801 Total 9,000,000 10,025,924 Less: current portion (2,163,197 ) (846,994 ) Total Long-Term Loans and Notes Payable $ 6,836,803 $ 9,178,930 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Apr. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 10– ACCUMULATED OTHER COMPREHENSIVE INCOME 2017 2016 Balance, beginning of year $ (2,337,437 ) $ 373,516 Total other comprehensive income (loss) for the year - foreign currency translation adjustment 767,887 (772,201 ) Balance, end of period $ (1,569,550 ) $ (398,685 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Apr. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 11 – RECENT ACCOUNTING PRONOUNCEMENTS On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. On February 24, 2016, the FASB issued ASU No. 2016-02, Leases, requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. On March 30, 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies various aspects related to the accounting and presentation of share-based payments. The amendments require entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the windfall tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. All tax-related cash flows resulting from share-based payments are required to be reported as operating activities in the statement of cash flows. The updates relating to the income tax effects of the share-based payments including the cash flow presentation must be adopted either prospectively or retrospectively. Further, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. We have evaluated the effects of this updated standard and determined that it will not have a significant impact on our consolidated financial statements and related disclosures. With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Apr. 30, 2017 | |
NET INCOME PER SHARE: | |
Earnings per Common Share | NOTE 12 – EARNINGS PER COMMON SHARE Three Months Three Months Six Months Six Months Ended Ended Ended Ended Fiscal Period April 30, 2017 April 30, 2016 April 30, 2017 April 30, 2016 Numerator: Net Income $ 1,274,964 $ 1,582,533 $ 2,846,926 $ 1,872,054 Denominator: Basic weighted average common shares outstanding 9,102,192 6,741,330 9,101,837 6,741,330 Conversion of Series C Preferred Stock 200,000 2,200,000 200,000 2,200,000 Diluted outstanding shares 9,302,192 8,941,330 9,301,837 8,941,330 Earnings from continuing operations Basic $ 0.14 $ 0.23 $ 0.31 $ 0.28 Diluted $ 0.14 $ 0.18 $ 0.31 $ 0.21 |
Segment Analysis
Segment Analysis | 6 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Analysis | NOTE 13 – SEGMENT ANALYSIS We are operating in two reportable segments, which are managed separately based upon fundamental differences in their operations. Coda Octopus Martech and Coda Octopus Colmek operate as contractors, and the balance of our operations are comprised of product sales. Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs. The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies. There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes. The following table summarizes segment asset and operating balances by reportable segment for the three months and six months ended April 30, 2017 and 2016 respectively. The Company’s reportable business segments operate in three geographic locations. Those geographic locations are: * United States * Europe * Australia Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the three and six months ended April 30, 2017 and 2016 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2017 Revenues from External Customers $ 3,299,545 $ 1,979,213 $ - $ 5,278,758 Cost of Revenues 968,908 1,045,032 - 2,013,940 Gross Profit 2,330,638 934,181 - 3,264,818 Research & Development 247,758 - - 247,758 Selling, General & Administrative 830,121 655,560 154,211 1,639,892 Operating Income (Loss) 1,252,758 278,621 (154,211 ) 1,377,168 Other Income (Expense) Other Income 86,643 - - 86,643 Interest Expense (181,806 ) (75,002 ) 67,961 (188,847 ) Total other income (expense) (95,163 ) (75,002 ) 67,961 (102,204 ) Income before income taxes 1,157,595 203,619 (86,250 ) 1,274,964 Income tax benefit (expense) - - - - Net Income $ 1,157,595 $ 203,620 $ (86,249 ) $ 1,274,964 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 505,660 170,056 118,875 794,591 Depreciation and Amortization 145,800 71,056 3,106 219,962 Purchases of Long-lived Assets 643,603 26,852 - 670,455 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2016 Revenues from External Customers $ 2,397,476 $ 3,348,499 $ - $ 5,745,975 Cost of Revenues 707,906 1,528,945 - 2,236,851 Gross Profit 1,689,570 1,819,554 - 3,509,124 Research & Development 186,991 - - 186,991 Selling, General & Administrative 737,049 785,557 80,948 1,603,554 Operating Income (Loss) 765,530 1,033,997 (80,948 ) 1,718,579 Other Income (Expense) Other Income 33,847 (77 ) - 33,770 Interest Expense (113,891 ) (56,490 ) 565 (169,816 ) Total other income (expense) (80,044 ) (56,567 ) 565 (136,046 ) Income (Loss) before income taxes 685,486 977,430 (80,383 ) 1,582,533 Income tax benefit (expense) - - - - Net Income (Loss) $ 685,486 $ 977,430 $ (80,383 ) $ 1,582,533 Supplemental Disclosures Total Assets $ 12,659,049 $ 10,000,625 $ 207,752 $ 22,867,426 Total Liabilities 1,375,795 830,979 11,745,611 13,952,385 Revenues from Intercompany Sales - eliminated from sales above 222,010 70,405 118,875 411,290 Depreciation and Amortization 41,178 83,365 3,078 127,621 Purchases of Long-lived Assets 873,269 (10,175 ) 8,868 871,962 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2017 Revenues from External Customers $ 5,750,144 $ 4,886,817 $ - $ 10,636,961 Cost of Revenues 1,698,926 2,298,059 - 3,996,985 Gross Profit 4,051,218 2,588,758 - 6,639,976 Research & Development 498,988 - - 498,988 Selling, General & Administrative 1,404,770 1,341,971 299,039 3,045,780 Operating Income (Loss) 2,147,460 1,246,787 (299,039 ) 3,095,208 Other Income (Expense) Other Income 136,059 - - 136,059 Interest (Expense) Income (532,141 ) (199,223 ) 347,023 (384,341 ) Total other income (expense) (396,082 ) (199,223 ) 347,023 (248,282 ) Income (Loss) before income taxes 1,751,378 1,047,564 47,984 2,846,926 Income tax benefit (expense) - - - - Net Income $ 1,751,378 $ 1,047,564 $ 47,984 $ 2,846,926 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 678,513 229,955 237,750 1,146,218 Depreciation and Amortization 247,263 142,781 6,317 396,361 Purchases of Long-lived Assets 2,289,063 49,033 12,470 2,350,566 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total For Six Months Ended April 30, 2016 Revenues from External Customers $ 5,389,099 $ 5,132,715 $ - $ 10,521,814 Cost of Revenues 2,068,408 2,709,592 - 4,778,000 Gross Profit 3,320,691 2,423,123 - 5,743,814 Research & Development 415,291 - - 415,291 Selling, General & Administrative 1,389,535 1,570,879 202,679 3,163,093 Operating Income (Loss) 1,515,865 852,244 (202,679 ) 2,165,430 Other Income (Expense) Other Income 99,764 5,898 - 105,662 Interest Expense (285,077 ) (113,818 ) (143 ) (399,038 ) Total other income (expense) (185,313 ) (107,920 ) (143 ) (293,376 ) Income (Loss) before income taxes 1,330,552 744,324 (202,822 ) 1,872,054 Income tax benefit (expense) - - - - Net Income (Loss) $ 1,330,552 $ 744,324 $ (202,822 ) $ 1,872,054 Supplemental Disclosures Total Assets $ 12,659,049 $ 10,000,625 $ 207,752 $ 22,867,426 Total Liabilities 1,375,795 830,979 11,745,611 13,952,385 Revenues from Intercompany Sales - eliminated from sales above 356,402 241,353 244,000 841,755 Depreciation and Amortization 125,635 174,719 6,432 306,786 Purchases of Long-lived Assets 719,307 21,798 8,868 749,973 USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended April 30, 2017 $ 2,525,908 $ 2,614,897 $ 137,953 $ 5,278,758 Three Months Ended April 30, 2016 $ 3,291,480 $ 2,176,818 $ 277,677 $ 5,745,975 Six Months Ended April 30, 2017 $ 5,275,675 $ 4,631,934 $ 729,352 $ 10,636,961 Six Months Ended April 30, 2016 $ 4,955,901 $ 4,763,447 $ 802,466 $ 10,521,814 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Apr. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 14 - SUBSEQUENT EVENT Subsequent events were evaluated through June 8, 2017. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | Inventory is stated at the lower of cost (first-in first-out method) or market. Inventory consisted of the following components: April 30, 2017 October 31, 2016 Raw materials and parts $ 1,881,044 $ 1,734,798 Work in progress 267,409 88,682 Demo goods 294,752 324,752 Finished goods 199,450 450,693 Total Inventory $ 2,642,655 $ 2,598,925 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Current Assets | Other current assets consisted of the following at April 30, 2017 and October 31, 2016: 2017 2016 Deposits $ 55,225 $ (349 ) Other receivables 369,895 35,543 Value added tax (VAT) receivable - 105,760 Total Other Current Assets $ 425,120 $ 140,954 |
Loans and Notes Payable (Tables
Loans and Notes Payable (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Loans and Notes Payable | Loans and notes payable consisted of the following at April 30, 2017 and October 31, 2016: 2017 2016 On February 21, 2008 the Company issued a convertible senior secured debenture with a face value of $12 million (“Secured Debentures”). The Secured Debentures under its original terms matured on February 21, 2015 and has been subject to a series of extensions, most recently to May 1, 2018. The Secured Debentures accrued annual interest of 8.5%. On April 28, 2017, the Company repaid in full all outstanding amounts due under the Secured Debentures. The Secured Debentures were paid using the $8,000,000 proceeds of the recently concluded Secured Loan from HSBC Bank NA (see below for further information) and the accrued and unpaid interest under the Secured Debentures of approximately $1,133,261 was satisfied through the issuance to the holder of the Secured Debentures of 1,000 shares of Series C Convertible Preferred Stock, par value $0.001, with a stated value of $1,000 each (the “Preferred Stock”). The Company paid the remaining balance in cash. $ - $ 9,744,123 Secured note payable to HSBC with interest payable at 4.56% per annum on the 28th day of each month and the Company is required to make monthly principal and interest payment of $149,350. Additionally, within 150 days of the end of each fiscal year the Company is required to pay an additional amount of $700,000 which reduces the principal outstanding under the Secured Loan. The maturity date is April 28, 2022. However, based on the payment scheduled in the Loan Agreement, it is expected that the Loan will be repaid in full in approximately 45 months. 8,000,000 One of the subsidiaries has an unsecured working capital loan from the CEO of the Group for working capital. The note is due on May 31st, 2018 and carries an interest rate of 4.5% 1,000,000 - In the fiscal year ended 2016, the Company had a 10 year secured mortgage for $527,675, secured by a building in the UK that required monthly principal payments of $4,018 along with interest at 2.75%, and was due to mature in October 2023. The conversion rate varied according to exchange rates fluctuations. This mortgage was secured by our building, located in Portland UK. This mortgage was paid in full on December 13, 2016. - 281,801 Total 9,000,000 10,025,924 Less: current portion (2,163,197 ) (846,994 ) Total Long-Term Loans and Notes Payable $ 6,836,803 $ 9,178,930 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | 2017 2016 Balance, beginning of year $ (2,337,437 ) $ 373,516 Total other comprehensive income (loss) for the year - foreign currency translation adjustment 767,887 (772,201 ) Balance, end of period $ (1,569,550 ) $ (398,685 ) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
NET INCOME PER SHARE: | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Three Months Six Months Six Months Ended Ended Ended Ended Fiscal Period April 30, 2017 April 30, 2016 April 30, 2017 April 30, 2016 Numerator: Net Income $ 1,274,964 $ 1,582,533 $ 2,846,926 $ 1,872,054 Denominator: Basic weighted average common shares outstanding 9,102,192 6,741,330 9,101,837 6,741,330 Conversion of Series C Preferred Stock 200,000 2,200,000 200,000 2,200,000 Diluted outstanding shares 9,302,192 8,941,330 9,301,837 8,941,330 Earnings from continuing operations Basic $ 0.14 $ 0.23 $ 0.31 $ 0.28 Diluted $ 0.14 $ 0.18 $ 0.31 $ 0.21 |
Segment Analysis (Tables)
Segment Analysis (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the three and six months ended April 30, 2017 and 2016 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2017 Revenues from External Customers $ 3,299,545 $ 1,979,213 $ - $ 5,278,758 Cost of Revenues 968,908 1,045,032 - 2,013,940 Gross Profit 2,330,638 934,181 - 3,264,818 Research & Development 247,758 - - 247,758 Selling, General & Administrative 830,121 655,560 154,211 1,639,892 Operating Income (Loss) 1,252,758 278,621 (154,211 ) 1,377,168 Other Income (Expense) Other Income 86,643 - - 86,643 Interest Expense (181,806 ) (75,002 ) 67,961 (188,847 ) Total other income (expense) (95,163 ) (75,002 ) 67,961 (102,204 ) Income before income taxes 1,157,595 203,619 (86,250 ) 1,274,964 Income tax benefit (expense) - - - - Net Income $ 1,157,595 $ 203,620 $ (86,249 ) $ 1,274,964 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 505,660 170,056 118,875 794,591 Depreciation and Amortization 145,800 71,056 3,106 219,962 Purchases of Long-lived Assets 643,603 26,852 - 670,455 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2016 Revenues from External Customers $ 2,397,476 $ 3,348,499 $ - $ 5,745,975 Cost of Revenues 707,906 1,528,945 - 2,236,851 Gross Profit 1,689,570 1,819,554 - 3,509,124 Research & Development 186,991 - - 186,991 Selling, General & Administrative 737,049 785,557 80,948 1,603,554 Operating Income (Loss) 765,530 1,033,997 (80,948 ) 1,718,579 Other Income (Expense) Other Income 33,847 (77 ) - 33,770 Interest Expense (113,891 ) (56,490 ) 565 (169,816 ) Total other income (expense) (80,044 ) (56,567 ) 565 (136,046 ) Income (Loss) before income taxes 685,486 977,430 (80,383 ) 1,582,533 Income tax benefit (expense) - - - - Net Income (Loss) $ 685,486 $ 977,430 $ (80,383 ) $ 1,582,533 Supplemental Disclosures Total Assets $ 12,659,049 $ 10,000,625 $ 207,752 $ 22,867,426 Total Liabilities 1,375,795 830,979 11,745,611 13,952,385 Revenues from Intercompany Sales - eliminated from sales above 222,010 70,405 118,875 411,290 Depreciation and Amortization 41,178 83,365 3,078 127,621 Purchases of Long-lived Assets 873,269 (10,175 ) 8,868 871,962 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2017 Revenues from External Customers $ 5,750,144 $ 4,886,817 $ - $ 10,636,961 Cost of Revenues 1,698,926 2,298,059 - 3,996,985 Gross Profit 4,051,218 2,588,758 - 6,639,976 Research & Development 498,988 - - 498,988 Selling, General & Administrative 1,404,770 1,341,971 299,039 3,045,780 Operating Income (Loss) 2,147,460 1,246,787 (299,039 ) 3,095,208 Other Income (Expense) Other Income 136,059 - - 136,059 Interest (Expense) Income (532,141 ) (199,223 ) 347,023 (384,341 ) Total other income (expense) (396,082 ) (199,223 ) 347,023 (248,282 ) Income (Loss) before income taxes 1,751,378 1,047,564 47,984 2,846,926 Income tax benefit (expense) - - - - Net Income $ 1,751,378 $ 1,047,564 $ 47,984 $ 2,846,926 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 678,513 229,955 237,750 1,146,218 Depreciation and Amortization 247,263 142,781 6,317 396,361 Purchases of Long-lived Assets 2,289,063 49,033 12,470 2,350,566 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total For Six Months Ended April 30, 2016 Revenues from External Customers $ 5,389,099 $ 5,132,715 $ - $ 10,521,814 Cost of Revenues 2,068,408 2,709,592 - 4,778,000 Gross Profit 3,320,691 2,423,123 - 5,743,814 Research & Development 415,291 - - 415,291 Selling, General & Administrative 1,389,535 1,570,879 202,679 3,163,093 Operating Income (Loss) 1,515,865 852,244 (202,679 ) 2,165,430 Other Income (Expense) Other Income 99,764 5,898 - 105,662 Interest Expense (285,077 ) (113,818 ) (143 ) (399,038 ) Total other income (expense) (185,313 ) (107,920 ) (143 ) (293,376 ) Income (Loss) before income taxes 1,330,552 744,324 (202,822 ) 1,872,054 Income tax benefit (expense) - - - - Net Income (Loss) $ 1,330,552 $ 744,324 $ (202,822 ) $ 1,872,054 Supplemental Disclosures Total Assets $ 12,659,049 $ 10,000,625 $ 207,752 $ 22,867,426 Total Liabilities 1,375,795 830,979 11,745,611 13,952,385 Revenues from Intercompany Sales - eliminated from sales above 356,402 241,353 244,000 841,755 Depreciation and Amortization 125,635 174,719 6,432 306,786 Purchases of Long-lived Assets 719,307 21,798 8,868 749,973 USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended April 30, 2017 $ 2,525,908 $ 2,614,898 $ 137,953 $ 5,278,758 Three Months Ended April 30, 2016 $ 3,291,480 $ 2,176,818 $ 277,677 $ 5,745,975 Six Months Ended April 30, 2017 $ 5,275,675 $ 4,631,934 $ 729,352 $ 10,636,961 Six Months Ended April 30, 2016 $ 4,955,901 $ 4,763,447 $ 802,466 $ 10,521,814 |
Inventory - Schedule of Compone
Inventory - Schedule of Components of Inventory (Details) - USD ($) | Apr. 30, 2017 | Oct. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 1,881,044 | $ 1,734,798 |
Work in progress | 267,409 | 88,682 |
Demo goods | 294,752 | 324,752 |
Finished goods | 199,450 | 450,693 |
Total Inventory | $ 2,642,655 | $ 2,598,925 |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) | Apr. 30, 2017 | Oct. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 55,225 | $ (349) |
Other receivables | 369,895 | 35,543 |
Value added tax (VAT) receivable | 105,760 | |
Total Other Current Assets | $ 425,120 | $ 140,954 |
Contracts in Progress (Details
Contracts in Progress (Details Narrative) - USD ($) | 6 Months Ended | |
Apr. 30, 2017 | Oct. 31, 2016 | |
Contracts In Progress | ||
Unbilled Receivables | $ 4,189,052 | $ 3,406,693 |
Deferred Revenues | 327,870 | 464,541 |
Component of Deferred Revenue | $ 0 | 0 |
Product warrant description | Revenue received as part of sales of equipment includes a provision for warranty and is treated as deferred revenue, along with extended warranty sales, and Through Life Support, a support package offering five years hardware and software support agreements. These amounts are amortized according to the contractual period in question which is over 12 months representing the warranty or support period for the equipment sold, or 36 months or 60 months for Through Life Support obligations, according to the package purchased by our customer. | |
Short term deferred revenue | $ 273,998 | 464,541 |
Long term deferred revenue | $ 53,872 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Oct. 31, 2016 | |
Percentage of sales from customers | 10.00% | 10.00% | 10.00% | 10.00% | |
Revenue from customer | $ 1,016,784 | $ 2,780,925 | $ 2,853,925 | $ 3,893,432 | |
Accounts receivable from customer | $ 2,662,397 | $ 2,662,397 | $ 3,274,204 | ||
Customer [Member] | |||||
Percentage of sales from customers | 19.00% | 48.00% | 27.00% | 37.00% | |
Accounts receivable from customer | $ 189,110 | $ 627,299 | $ 189,110 | $ 627,299 | |
Customer [Member] | Accounts Receivable [Member] | |||||
Percentage of sales from customers | 7.00% | 19.00% |
Loans and Notes Payable - Sched
Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) - USD ($) | Apr. 30, 2017 | Oct. 31, 2016 |
Total | $ 9,000,000 | $ 10,025,924 |
Less: current portion | (2,163,197) | (846,994) |
Loans and notes payable | 6,836,803 | 9,178,930 |
Secured Debt One [Member] | ||
Total | 9,744,123 | |
Secured Debt Two [Member] | ||
Total | 8,000,000 | |
Secured Debt Three [Member] | ||
Total | 1,000,000 | |
Secured Debt Four [Member] | ||
Total | $ 281,801 |
Loans and Notes Payable - Sch32
Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) (Parenthetical) - USD ($) | Apr. 28, 2017 | Feb. 21, 2008 | Apr. 30, 2017 | Oct. 31, 2016 |
Convertible senior secured debenture, face value | $ 12,000,000 | |||
Secured debenture, maturity date | Feb. 21, 2015 | May 31, 2018 | ||
Debt, interest rate | 8.50% | 4.50% | ||
Secured Mortgage [Member] | ||||
Convertible senior secured debenture, face value | $ 527,675 | |||
Secured debenture, maturity date | Oct. 31, 2023 | |||
Debt, interest rate | 2.75% | |||
Monthly principal payments | $ 4,018 | |||
Secured Debt Two [Member] | ||||
Secured debenture, maturity date | Apr. 28, 2022 | |||
Loan Agreement [Member] | Lender [Member] | ||||
Loan, annual interest rate | 4.56% | |||
Monthly principal and interest payment | $ 149,350 | |||
Additional amount required to reduce the principal outstanding | $ 700,000 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Equity [Abstract] | ||||
Balance, beginning of year | $ (2,337,437) | $ 373,516 | ||
Total other compehensive income (loss) for the year - foreign currency translation adjustment | $ 346,727 | $ 299,876 | 767,887 | (772,201) |
Balance, end of period | $ (1,569,550) | $ (398,685) | $ (1,569,550) | $ (398,685) |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
NET INCOME PER SHARE: | ||||
Net Income | $ 1,274,964 | $ 1,582,533 | $ 2,846,926 | $ 1,872,054 |
Basic weighted average common shares outstanding | 9,102,192 | 6,741,330 | 9,101,837 | 6,741,330 |
Conversion of Series C Preferred Stock | 200,000 | 2,200,000 | 200,000 | 2,200,000 |
Diluted outstanding shares | 9,302,192 | 8,941,330 | 9,301,837 | 8,941,330 |
Earnings from continuing operations, Basic | $ 0.14 | $ 0.23 | $ 0.31 | $ 0.28 |
Earnings from continuing operations, Diluted | $ 0.14 | $ 0.18 | $ 0.31 | $ 0.21 |
Segment Analysis (Details Narra
Segment Analysis (Details Narrative) | 6 Months Ended |
Apr. 30, 2017Integer | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Analysis - Schedule of
Segment Analysis - Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Oct. 31, 2016 | |
Revenues from External Customers | $ 5,278,758 | $ 5,745,975 | $ 10,636,961 | $ 10,521,814 | |
Cost of Revenues | 2,013,940 | 2,236,851 | 3,996,985 | 4,778,000 | |
Gross Profit | 3,264,818 | 3,509,124 | 6,639,976 | 5,743,814 | |
Research & Development | 247,758 | 186,991 | 498,988 | 415,291 | |
Selling, General & Administrative | 1,639,892 | 1,603,554 | 3,045,780 | 3,163,093 | |
Operating Income (Loss) | 1,377,168 | 1,718,579 | 3,095,208 | 2,165,430 | |
Other Income | 86,643 | 33,770 | 136,059 | 105,662 | |
Interest Expense | (188,847) | (169,816) | (384,341) | (399,038) | |
Total other income (expense) | (102,204) | (136,046) | (248,282) | (293,376) | |
Income before income taxes | 1,274,964 | 1,582,533 | 2,846,926 | 1,872,054 | |
Income tax benefit (expense) | |||||
Net Income | 1,274,964 | 1,582,533 | 2,846,926 | 1,872,054 | |
Total Assets | 25,158,045 | 22,867,426 | 25,158,045 | 22,867,426 | $ 22,835,520 |
Total Liabilities | 11,478,219 | 13,952,385 | 11,478,219 | 13,952,385 | $ 12,681,007 |
Revenues from Intercompany Sales - eliminated from sales above | 794,591 | 411,290 | 1,146,218 | 841,755 | |
Depreciation and Amortization | 219,962 | 127,621 | 396,361 | 306,786 | |
Purchases of Long-lived Assets | 670,455 | 871,962 | 2,350,566 | 747,616 | |
USA [Member] | |||||
Revenues from External Customers | 2,525,908 | 3,291,480 | 5,275,675 | 4,955,901 | |
Europe [Member] | |||||
Revenues from External Customers | 2,614,897 | 2,176,818 | 4,631,934 | 4,763,447 | |
Australia [Member] | |||||
Revenues from External Customers | 137,953 | 277,677 | 729,352 | 802,466 | |
Marine Technology Business [Member] | |||||
Revenues from External Customers | 3,299,545 | 2,397,476 | 5,750,144 | 5,389,099 | |
Cost of Revenues | 968,908 | 707,906 | 1,698,926 | 2,068,408 | |
Gross Profit | 2,330,638 | 1,689,570 | 4,051,218 | 3,320,691 | |
Research & Development | 247,758 | 186,991 | 498,988 | 415,291 | |
Selling, General & Administrative | 830,121 | 737,049 | 1,404,770 | 1,389,535 | |
Operating Income (Loss) | 1,252,758 | 765,530 | 2,147,460 | 1,515,865 | |
Other Income | 86,643 | 33,847 | 136,059 | 99,764 | |
Interest Expense | (181,806) | (113,891) | (532,141) | (285,077) | |
Total other income (expense) | (95,163) | (80,044) | (396,082) | (185,313) | |
Income before income taxes | 1,157,595 | 685,486 | 1,751,378 | 1,330,552 | |
Income tax benefit (expense) | |||||
Net Income | 1,157,595 | 685,486 | 1,751,378 | 1,330,552 | |
Total Assets | 12,119,417 | 12,659,049 | 12,119,417 | 12,659,049 | |
Total Liabilities | 1,223,741 | 1,375,795 | 1,223,741 | 1,375,795 | |
Revenues from Intercompany Sales - eliminated from sales above | 505,660 | 222,010 | 678,513 | 356,402 | |
Depreciation and Amortization | 145,800 | 41,178 | 247,263 | 125,635 | |
Purchases of Long-lived Assets | 643,603 | 873,269 | 2,289,063 | 719,307 | |
Marine Engineering Business [Member] | |||||
Revenues from External Customers | 1,979,213 | 3,348,499 | 4,886,817 | 5,132,715 | |
Cost of Revenues | 1,045,032 | 1,528,945 | 2,298,059 | 2,709,592 | |
Gross Profit | 934,181 | 1,819,554 | 2,588,758 | 2,423,123 | |
Research & Development | |||||
Selling, General & Administrative | 655,560 | 785,557 | 1,341,971 | 1,570,879 | |
Operating Income (Loss) | 278,621 | 1,033,997 | 1,246,787 | 852,244 | |
Other Income | (77) | 5,898 | |||
Interest Expense | (75,002) | (56,490) | (199,223) | (113,818) | |
Total other income (expense) | (75,002) | (56,567) | (199,223) | (107,920) | |
Income before income taxes | 203,619 | 977,430 | 1,047,564 | 744,324 | |
Income tax benefit (expense) | |||||
Net Income | 203,620 | 977,430 | 1,047,564 | 744,324 | |
Total Assets | 12,616,569 | 10,000,625 | 12,616,569 | 10,000,625 | |
Total Liabilities | 1,654,104 | 830,979 | 1,654,104 | 830,979 | |
Revenues from Intercompany Sales - eliminated from sales above | 170,056 | 70,405 | 229,955 | 241,353 | |
Depreciation and Amortization | 71,056 | 83,365 | 142,781 | 174,719 | |
Purchases of Long-lived Assets | 26,852 | (10,175) | 49,033 | 21,798 | |
Overhead [Member] | |||||
Revenues from External Customers | |||||
Cost of Revenues | |||||
Gross Profit | |||||
Research & Development | |||||
Selling, General & Administrative | 154,211 | 80,948 | 299,039 | 202,679 | |
Operating Income (Loss) | (154,211) | (80,948) | (299,039) | (202,679) | |
Other Income | |||||
Interest Expense | 67,961 | 565 | 347,023 | (143) | |
Total other income (expense) | 67,961 | 565 | 347,023 | (143) | |
Income before income taxes | (86,250) | (80,383) | 47,984 | (202,822) | |
Income tax benefit (expense) | |||||
Net Income | (86,249) | (80,383) | 47,984 | (202,822) | |
Total Assets | 422,059 | 207,752 | 422,059 | 207,752 | |
Total Liabilities | 8,600,374 | 11,745,611 | 8,600,374 | 11,745,611 | |
Revenues from Intercompany Sales - eliminated from sales above | 118,875 | 118,875 | 237,750 | 244,000 | |
Depreciation and Amortization | 3,106 | 3,078 | 6,317 | 6,432 | |
Purchases of Long-lived Assets | $ 8,868 | $ 12,470 | $ 8,868 |