Coda Octopus (CODA) 10-Q 14 Sep 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2017	Sep. 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	Jul. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,122,728
Trading Symbol	CODA
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jul. 31, 2017	Oct. 31, 2016
CURRENT ASSETS
Cash and Cash Equivalents	$ 6,996,329	$ 5,601,767
Restricted Cash		13,694
Accounts Receivables, Net	2,533,470	3,274,204
Inventory	2,897,767	2,598,925
Unbilled Receivables	3,733,116	3,406,693
Other Current Assets	381,997	140,954
Prepaid Expenses	205,180	112,884
Total Current Assets	16,747,859	15,149,121
FIXED ASSETS
Property and Equipment, net	5,459,517	3,840,500
OTHER ASSETS
Other Assets	10,663	96,374
Goodwill and Other Intangibles, net	3,704,725	3,749,525
Total Other Assets	3,715,388	3,845,899
Total Assets	25,922,764	22,835,520
CURRENT LIABILITIES
Accounts Payable	1,525,523	1,396,475
Accrued Expenses and Other Current Liabilities	545,272	794,067
Loans and Note Payable, current	3,187,932	846,994
Deferred Revenues	267,369	464,541
Total Current Liabilities	5,526,096	3,502,077
LONG-TERM LIABILITIES
Deferred revenue, long term	48,511
Loans and Note Payable, long term	5,453,792	9,178,930
Total Long-Term Liabilities	5,502,303	9,178,930
Total Liabilities	11,028,399	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 July 31, 2017 and October 31, 2016, respectively	1	1
Common stock, $.001 par value; 150,000,000 shares authorized, 9,122,728 and 9,094,156 shares issued and outstanding as of July 31, 2017 and October 31, 2016, respectively	9,122	9,094
Additional paid-in capital	52,792,357	52,805,455
Accumulated other comprehensive loss	(1,556,243)	(2,337,437)
Accumulated deficit	(36,350,872)	(40,322,600)
Total Stockholders' Equity	14,894,365	10,154,513
Total Liabilities and Stockholders' Equity	$ 25,922,764	$ 22,835,520

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 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	9,122,728	9,094,156
Common stock, shares outstanding	9,122,728	9,094,156

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016
Income Statement [Abstract]
Net Revenues	$ 5,043,590	$ 4,278,660	$ 15,680,551	$ 14,800,474
Cost of Revenues	1,982,761	1,432,673	5,979,746	6,210,673
Gross Profit	3,060,829	2,845,987	9,700,805	8,589,801
OPERATING EXPENSES
Research & Development	200,118	292,855	699,106	708,146
Selling, General & Administrative	1,717,264	1,284,916	4,741,968	4,448,009
Total Operating Expenses	1,917,382	1,577,771	5,441,074	5,156,155
INCOME FROM OPERATIONS	1,143,447	1,268,216	4,259,731	3,433,646
OTHER INCOME (EXPENSE)
Other Income	89,931	50,115	204,914	155,777
Interest Expense	(112,089)	(217,471)	(496,430)	(616,509)
Total Other Income (Expense)	(22,158)	(167,356)	(291,516)	(460,732)
NET INCOME BEFORE INCOME TAXES	1,121,289	1,100,860	3,968,215	2,972,914
INCOME TAX BENEFIT	3,513		3,513
NET INCOME	$ 1,124,802	$ 1,100,860	$ 3,971,728	$ 2,972,914
NET INCOME PER SHARE:
Basic	$ 0.12	$ 0.16	$ 0.44	$ 0.44
Diluted	$ 0.12	$ 0.12	$ 0.43	$ 0.33
WEIGHTED AVERAGE SHARES:
Basic	9,110,674	6,741,330	9,104,890	6,741,330
Diluted	9,310,674	8,941,330	9,304,890	8,941,330
NET INCOME	$ 1,124,802	$ 1,100,860	$ 3,971,728	$ 2,972,914
Other Comprehensive Income (Loss):
Foreign currency translation adjustment	13,307	(1,107,355)	781,194	(1,879,556)
Total Other Comprehensive Income (Loss)	13,307	(1,107,355)	781,194	(1,879,556)
COMPREHENSIVE INCOME (LOSS)	$ 1,138,109	$ (6,495)	$ 4,752,922	$ 1,093,358

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Jul. 31, 2017 - USD ($)	Preferred Stock Series C [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		$ 14	25,486			25,500
Stock Issued to Consultant, shares		14,286
Stock Issued to Board of Directors		$ 14	61,416			61,430
Stock Issued to Board of Directors, shares		14,286
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				781,194		781,194
Net Income					3,971,728	3,971,728
Balance at Jul. 31, 2017	$ 1	$ 9,122	$ 52,792,357	$ (1,556,243)	$ (36,350,872)	$ 14,894,365
Balance, shares at Jul. 31, 2017	1,000	9,122,728

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 3,971,728	$ 2,972,914
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	631,062	512,714
Stock compensation	86,930	77,000
Realized gain on the sale of fixed assets	(81,494)
(Increase) decrease in operating assets:
Accounts receivable	740,734	(276,218)
Inventory	(298,842)	870,773
Unbilled receivables	(326,421)	262,068
Other current assets	(241,044)
Prepaid expenses	(92,296)	(13,942)
Deferred tax asset	85,712	(5,524)
Increase (decrease) in operating liabilities:
Accounts payable and other current liabilities	(119,748)	(224,429)
Deferred revenues	(148,661)	(46,359)
Net Cash Provided by Operating Activities	4,207,660	4,128,997
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(2,649,060)	(668,524)
Restricted cash	13,695	4,328
Proceeds from the sale of fixed assets	525,275
Net Cash Used in Investing Activities	(2,110,090)	(664,196)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments - loans and notes payable	(384,202)	(1,121,406)
Redemption of Series C preferred stock	(1,100,000)
Net Cash Used in Financing Activities	(1,484,202)	(1,121,406)
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH	781,194	(1,879,556)
NET INCREASE IN CASH	1,394,562	463,839
CASH AT THE BEGINNING OF THE PERIOD	5,601,767	6,310,694
CASH AT THE END OF THE PERIOD	6,996,329	6,774,533
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	464,705	889,145
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 debt directly with proceeds of note payable	$ 8,000,000

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jul. 31, 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 condensed consolidated financial position, results of operations, comprehensive income 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/A (the “Form 10”). The condensed consolidated results of operations for the interim period ended July 31, 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 condensed consolidated financial statements contain all adjustments (consisting of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of the Company’s financial position as of July 31, 2017 and the results of operations, comprehensive income and cash flows for the interim periods ended July 31, 2017 and 2016. The unaudited interim condensed 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, Australian based operations are measured using Australian Dollars, Danish based operations are measured using Danish Kroners and Norwegian based operations are measured using Norwegian Kroners 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 re-measurement 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	9 Months Ended
	Jul. 31, 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 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	9 Months Ended
	Jul. 31, 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	9 Months Ended
	Jul. 31, 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: July 31,2017 October 31, 2016 Raw materials and parts $ 2,259,228 $ 1,734,798 Work in progress 184,661 88,682 Demo goods 296,391 324,752 Finished goods 157,487 450,693 Total Inventory $ 2,897,767 $ 2,598,925

Other Current Assets

Other Current Assets	9 Months Ended
	Jul. 31, 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 July 31, 2017 and October 31, 2016: 2017 2016 Deposits $ 11,240 $ (349 ) Other receivables 40,056 35,543 Value added tax (VAT) receivable 330,701 105,760 Total Other Current Assets $ 381,997 $ 140,954

Estimates

Estimates	9 Months Ended
	Jul. 31, 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	9 Months Ended
	Jul. 31, 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 $3,733,116 and $3,406,693 as of July 31, 2017 and October 31, 2016, respectively. Our Deferred Revenue of $315,880 and $464,541 as of July 31, 2017 and October 31, 2016, respectively, consists of billings in excess of costs and revenues received as part of our warranty and Through Life Support obligations upon completing a sale of our products– 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 July 31, 2017 and October 31, 2016, respectively. Revenue received as part of sales of equipment includes a provision for warranty and is recorded as deferred revenue and Through Life Support (a support package offering three and five years hardware, software and technical support of products purchased). These amounts are amortized according to the contractual period in question which is over 12 months for warranty obligations and 36 months or 60 months for Through Life Support obligations, according to the package purchased by our customers. The short-term portions of the deferred revenues were $267,369 and $464,541 as of July 31, 2017 and October 31, 2016, respectively. The long-term portions of the deferred revenues were $48,511 and $0 as of July 31, 2017 and October 31, 2016 respectively.

Concentrations

Concentrations	9 Months Ended
	Jul. 31, 2017
Risks and Uncertainties [Abstract]
Concentrations	NOTE 8 – CONCENTRATIONS Significant Customers During the three months ended July 31, 2017, the Company had a customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $1,107,723, or 22% of net revenues during the period. Total accounts receivable from this customer at July 31, 2017 was $605,831 or 24% of accounts receivable. During the three months ended July 31, 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 65% of net revenues during the period. Total accounts receivable from these customers at July 31, 2016 was $627,299 or 26% of accounts receivable. During the nine months ended July 31, 2017, the Company had a customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $3,961,648, or 25% of net revenues during the period. Total accounts receivable from this customer at July 31, 2017 was $605,831 or 24% of accounts receivable. During the nine months ended July 31, 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 26% of net revenues during the period. Total accounts receivable from these customers at July 31, 2016 was $627,299 or 26% of accounts receivable.

Loans and Notes Payable

Loans and Notes Payable	9 Months Ended
	Jul. 31, 2017
Debt Disclosure [Abstract]
Loans and Notes Payable	NOTE 9 – LOANS AND NOTES PAYABLE Loans and notes payable consisted of the following at July 31, 2017 and October 31, 2016: 2017 2016 On April 28, 2017, the Company repaid in full all outstanding amounts due under the Secured Debentures which was issued on February 21, 2008 and all security interest was released. The Secured Debentures were paid using the $8,000,000 proceeds of the Secured Loan from HSBC Bank NA (see below for further information) and the accrued and unpaid interest under the Debentures of approximately $1,133,261 was satisfied through the issuance to CCM 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 balance in cash. $ - $ 9,744,123 Secured note in the principal amount of $8,000,000 payable to HSBC with interest payable on the 28 th 7,641,724 - One of the subsidiaries has an unsecured working capital loan from the CEO of the Group. The note is due on May 31st, 2018 and carries an annual interest rate of 4.5%. 1,000,000 - 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 repaid in full on December 13, 2016 and all security interest was released by the Bank. - 281,801 Total 8,641,724 10,025,924 Less: current portion (3,187,932 ) (846,994 ) Total Long-Term Loans and Notes Payable $ 5,453,792 $ 9,178,930

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Jul. 31, 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 781,194 (1,879,556 ) Balance, end of period $ (1,556,243 ) $ (1,506,040 )

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Jul. 31, 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 do not believe that the adoption of this standard will have a material effect on our financial statement. 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	9 Months Ended
	Jul. 31, 2017
NET INCOME PER SHARE:
Earnings Per Common Share	NOTE 12 – EARNINGS PER COMMON SHARE Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Fiscal Period July 31,2017 July 31 2016 July 31, 2017 July 31, 2016 Numerator: Net Income $ 1,124,802 $ 1,100,860 $ 3,971,728 $ 2,972,914 Denominator: Basic weighted average common shares outstanding 9,110,674 6,741,330 9,104,890 6,741,330 Conversion of Series C Preferred Stock 200,000 2,200,000 200,000 2,200,000 Diluted outstanding shares 9,310,674 8,941,330 9,304,890 8,941,330 Earnings from continuing operations Basic $ 0.12 $ 0.16 $ 0.44 $ 0.44 Diluted $ 0.12 $ 0.12 $ 0.43 $ 0.33

Segment Analysis

Segment Analysis	9 Months Ended
	Jul. 31, 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 engineering 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, as outlined in the October 31, 2016 financial statements. There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes. The Company’s reportable business segments operate in three geographic locations. Those geographic locations are: * United States * Europe * Australia The following tables summarize segment asset and operating balances by reportable segment for the three months and nine months ended July 31, 2017 and 2016 respectively. Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2017 Revenues from External Customers $ 3,439,587 $ 1,604,003 $ - $ 5,043,590 Cost of Revenues 1,054,369 928,392 - 1,982,761 Gross Profit 2,385,218 675,611 - 3,060,829 Research & Development 200,118 - - 200,118 Selling, General & Administrative 781,908 637,465 297,891 1,717,264 Total Operating Expenses 982,026 637,465 297,891 1,917,382 Operating Income (Loss) 1,403,192 38,146 (297,891 ) 1,143,447 Other Income (Expense) Other Income 89,670 261 - 89,931 Interest Expense (5,947 ) (15,451 ) (90,691 ) (112,089 ) Total other income (expense) 83,723 (15,190 ) (90,691 ) (22,158) Income before income taxes 1,486,915 22,956 (388,582 ) 1,121,289 Income tax benefit (expense) 3,513 - - 3,513 Net Income $ 1,490,428 $ 22,956 $ (388,582 ) $ 1,124,802 Supplemental Disclosures Total Assets $ 12,300,376 $ 12,529,169 $ 1,093,219 $ 25,922,764 Total Liabilities 1,103,023 1,638,002 8,287,374 11,028,399 Revenues from Intercompany Sales - eliminated from sales above 1,002,339 36,030 369,625 1,407,994 Depreciation and Amortization 130,048 101,442 3,211 234,701 Purchases of Long-lived Assets 252,653 45,841 - 298,494 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2016 Revenues from External Customers $ 2,427,570 $ 1,851,090 $ - $ 4,278,660 Cost of Revenues 622,195 810,478 - 1,432,673 Gross Profit 1,805,375 1,040,612 - 2,845,987 Research & Development 292,855 - - 292,855 Selling, General & Administrative 422,096 578,297 284,523 1,284,916 Total Operating Expenses 714,951 578,297 284,523 1,577,771 Operating Income (Loss) 1,090,424 462,315 (284,523 ) 1,268,216 Other Income (Expense) Other Income 50,226 (111 ) - 50,115 Interest Expense (330,306 ) (110,113 ) 222,948 (217,471 ) Total other income (expense) (280,080 ) (110,224 ) 222,948 (167,356 ) Income (Loss) before income taxes 810,344 352,091 (61,575 ) 1,100,860 Income tax benefit (expense) - - - - Net Income (Loss) $ 810,344 $ 352,091 $ (61,575 ) $ 1,100,860 Supplemental Disclosures Total Assets $ 11,883,612 $ 9,613,958 $ 155,302 $ 21,652,872 Total Liabilities 1,218,381 640,083 10,808,862 12,667,326 Revenues from Intercompany Sales - eliminated from sales above 286,892 (63,221 ) 118,875 342,546 Depreciation and Amortization 121,600 81,129 3,199 205,928 Purchases of Long-lived Assets (76,401 ) (8,648 ) 3,600 (81,449 ) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2017 Revenues from External Customers $ 9,189,731 $ 6,490,820 $ - $ 15,680,551 Cost of Revenues 2,753,297 3,226,449 - 5,979,746 Gross Profit 6,436,434 3,264,371 - 9,700,805 Research & Development 699,106 - - 699,106 Selling, General & Administrative 2,165,601 1,979,436 596,931 4,741,968 Total Operating Expenses 2,864,707 1,979,436 596,931 5,441,074 Operating Income (Loss) 3,571,727 1,284,935 (596,931 ) 4,259,731 Other Income (Expense) Other Income 204,653 261 - 204,914 Interest (Expense) Income (538,088 ) (214,674 ) 256,332 (496,430 ) Total other income (expense) (333,435 ) (214,413 ) 256,332 (291,516 ) Income (Loss) before income taxes 3,238,292 1,070,522 (340,599 ) 3,968,215 Income tax benefit (expense) 3,513 - - 3,513 Net Income $ 3,241,805 $ 1,070,522 $ (340,599 ) $ 3,971,728 Supplemental Disclosures Revenues from Intercompany Sales - eliminated from sales above 1,680,852 265,985 607,375 2,554,212 Depreciation and Amortization 377,311 244,223 9,528 631,062 Purchases of Long-lived Assets 2,541,716 94,874 12,470 2,649,060 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2016 Revenues from External Customers $ 7,816,669 $ 6,983,805 $ - $ 14,800,474 Cost of Revenues 2,690,603 3,520,070 - 6,210,673 Gross Profit 5,126,066 3,463,735 - 8,589,801 Research & Development 708,146 - - 708,146 Selling, General & Administrative 1,905,381 2,180,426 362,202 4,448,009 Total Operating Expenses 2,613,527 2,180,426 362,202 5,156,155 Operating Income (Loss) 2,512,539 1,283,309 (362,202 ) 3,433,646 Other Income (Expense) Other Income 149,990 5,787 - 155,777 Interest Expense (615,383 ) (223,931 ) 222,805 (616,509 ) Total other income (expense) (465,393 ) (218,144 ) 222,805 (460,732 ) Income (Loss) before income taxes 2,047,146 1,065,165 (139,397 ) 2,972,914 Income tax benefit (expense) - - - - Net Income (Loss) $ 2,047,146 $ 1,065,165 $ (139,397 ) $ 2,972,914 Supplemental Disclosures Revenues from Intercompany Sales - eliminated from sales above 643,294 178,132 362,875 1,184,301 Depreciation and Amortization 247,235 255,848 9,631 512,714 Purchases of Long-lived Assets 642,906 13,150 12,468 668,524 Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the three and nine months ended July 31, 2017 and 2016 respectively: USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended July 31, 2017 $ 1,550,141 $ 2,942,365 $ 551,085 $ 5,043,591 Three Months Ended July 31, 2016 $ 1,983,771 $ 1,970,478 $ 324,411 $ 4,278,660 Nine Months Ended July 31, 2017 $ 6,825,815 $ 7,574,299 $ 1,280,437 $ 15,680,551 Nine Months Ended July 31, 2016 $ 6,939,673 $ 6,733,926 $ 1,126,875 $ 14,800,474

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Jul. 31, 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: July 31,2017 October 31, 2016 Raw materials and parts $ 2,259,228 $ 1,734,798 Work in progress 184,661 88,682 Demo goods 296,391 324,752 Finished goods 157,487 450,693 Total Inventory $ 2,897,767 $ 2,598,925

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Jul. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Current Assets	Other current assets consisted of the following at July 31, 2017 and October 31, 2016: 2017 2016 Deposits $ 11,240 $ (349 ) Other receivables 40,056 35,543 Value added tax (VAT) receivable 330,701 105,760 Total Other Current Assets $ 381,997 $ 140,954

Loans and Notes Payable (Tables

Loans and Notes Payable (Tables)	9 Months Ended
	Jul. 31, 2017
Debt Disclosure [Abstract]
Schedule of Loans and Notes Payable	Loans and notes payable consisted of the following at July 31, 2017 and October 31, 2016: 2017 2016 On April 28, 2017, the Company repaid in full all outstanding amounts due under the Secured Debentures which was issued on February 21, 2008 and all security interest was released. The Secured Debentures were paid using the $8,000,000 proceeds of the Secured Loan from HSBC Bank NA (see below for further information) and the accrued and unpaid interest under the Debentures of approximately $1,133,261 was satisfied through the issuance to CCM 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 balance in cash. $ - $ 9,744,123 Secured note in the principal amount of $8,000,000 payable to HSBC with interest payable on the 28 th 7,641,724 - One of the subsidiaries has an unsecured working capital loan from the CEO of the Group. The note is due on May 31st, 2018 and carries an annual interest rate of 4.5%. 1,000,000 - 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 repaid in full on December 13, 2016 and all security interest was released by the Bank. - 281,801 Total 8,641,724 10,025,924 Less: current portion (3,187,932 ) (846,994 ) Total Long-Term Loans and Notes Payable $ 5,453,792 $ 9,178,930

Accumulated Other Comprehensi23

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Jul. 31, 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 781,194 (1,879,556 ) Balance, end of period $ (1,556,243 ) $ (1,506,040 )

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Jul. 31, 2017
NET INCOME PER SHARE:
Schedule of Earnings Per Share Basic and Diluted	Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Fiscal Period July 31,2017 July 31 2016 July 31, 2017 July 31, 2016 Numerator: Net Income $ 1,124,802 $ 1,100,860 $ 3,971,728 $ 2,972,914 Denominator: Basic weighted average common shares outstanding 9,110,674 6,741,330 9,104,890 6,741,330 Conversion of Series C Preferred Stock 200,000 2,200,000 200,000 2,200,000 Diluted outstanding shares 9,310,674 8,941,330 9,304,890 8,941,330 Earnings from continuing operations Basic $ 0.12 $ 0.16 $ 0.44 $ 0.44 Diluted $ 0.12 $ 0.12 $ 0.43 $ 0.33

Segment Analysis (Tables)

Segment Analysis (Tables)	9 Months Ended
	Jul. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2017 Revenues from External Customers $ 3,439,587 $ 1,604,003 $ - $ 5,043,590 Cost of Revenues 1,054,369 928,392 - 1,982,761 Gross Profit 2,385,218 675,611 - 3,060,829 Research & Development 200,118 - - 200,118 Selling, General & Administrative 781,908 637,465 297,891 1,717,264 Total Operating Expenses 982,026 637,465 297,891 1,917,382 Operating Income (Loss) 1,403,192 38,146 (297,891 ) 1,143,447 Other Income (Expense) Other Income 89,670 261 - 89,931 Interest Expense (5,947 ) (15,451 ) (90,691 ) (112,089 ) Total other income (expense) 83,723 (15,190 ) (90,691 ) (22,158) Income before income taxes 1,486,915 22,956 (388,582 ) 1,121,289 Income tax benefit (expense) 3,513 - - 3,513 Net Income $ 1,490,428 $ 22,956 $ (388,582 ) $ 1,124,802 Supplemental Disclosures Total Assets $ 12,300,376 $ 12,529,169 $ 1,093,219 $ 25,922,764 Total Liabilities 1,103,023 1,638,002 8,287,374 11,028,399 Revenues from Intercompany Sales - eliminated from sales above 1,002,339 36,030 369,625 1,407,994 Depreciation and Amortization 130,048 101,442 3,211 234,701 Purchases of Long-lived Assets 252,653 45,841 - 298,494 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2016 Revenues from External Customers $ 2,427,570 $ 1,851,090 $ - $ 4,278,660 Cost of Revenues 622,195 810,478 - 1,432,673 Gross Profit 1,805,375 1,040,612 - 2,845,987 Research & Development 292,855 - - 292,855 Selling, General & Administrative 422,096 578,297 284,523 1,284,916 Total Operating Expenses 714,951 578,297 284,523 1,577,771 Operating Income (Loss) 1,090,424 462,315 (284,523 ) 1,268,216 Other Income (Expense) Other Income 50,226 (111 ) - 50,115 Interest Expense (330,306 ) (110,113 ) 222,948 (217,471 ) Total other income (expense) (280,080 ) (110,224 ) 222,948 (167,356 ) Income (Loss) before income taxes 810,344 352,091 (61,575 ) 1,100,860 Income tax benefit (expense) - - - - Net Income (Loss) $ 810,344 $ 352,091 $ (61,575 ) $ 1,100,860 Supplemental Disclosures Total Assets $ 11,883,612 $ 9,613,958 $ 155,302 $ 21,652,872 Total Liabilities 1,218,381 640,083 10,808,862 12,667,326 Revenues from Intercompany Sales - eliminated from sales above 286,892 (63,221 ) 118,875 342,546 Depreciation and Amortization 121,600 81,129 3,199 205,928 Purchases of Long-lived Assets (76,401 ) (8,648 ) 3,600 (81,449 ) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2017 Revenues from External Customers $ 9,189,731 $ 6,490,820 $ - $ 15,680,551 Cost of Revenues 2,753,297 3,226,449 - 5,979,746 Gross Profit 6,436,434 3,264,371 - 9,700,805 Research & Development 699,106 - - 699,106 Selling, General & Administrative 2,165,601 1,979,436 596,931 4,741,968 Total Operating Expenses 2,864,707 1,979,436 596,931 5,441,074 Operating Income (Loss) 3,571,727 1,284,935 (596,931 ) 4,259,731 Other Income (Expense) Other Income 204,653 261 - 204,914 Interest (Expense) Income (538,088 ) (214,674 ) 256,332 (496,430 ) Total other income (expense) (333,435 ) (214,413 ) 256,332 (291,516 ) Income (Loss) before income taxes 3,238,292 1,070,522 (340,599 ) 3,968,215 Income tax benefit (expense) 3,513 - - 3,513 Net Income $ 3,241,805 $ 1,070,522 $ (340,599 ) $ 3,971,728 Supplemental Disclosures Revenues from Intercompany Sales - eliminated from sales above 1,680,852 265,985 607,375 2,554,212 Depreciation and Amortization 377,311 244,223 9,528 631,062 Purchases of Long-lived Assets 2,541,716 94,874 12,470 2,649,060 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2016 Revenues from External Customers $ 7,816,669 $ 6,983,805 $ - $ 14,800,474 Cost of Revenues 2,690,603 3,520,070 - 6,210,673 Gross Profit 5,126,066 3,463,735 - 8,589,801 Research & Development 708,146 - - 708,146 Selling, General & Administrative 1,905,381 2,180,426 362,202 4,448,009 Total Operating Expenses 2,613,527 2,180,426 362,202 5,156,155 Operating Income (Loss) 2,512,539 1,283,309 (362,202 ) 3,433,646 Other Income (Expense) Other Income 149,990 5,787 - 155,777 Interest Expense (615,383 ) (223,931 ) 222,805 (616,509 ) Total other income (expense) (465,393 ) (218,144 ) 222,805 (460,732 ) Income (Loss) before income taxes 2,047,146 1,065,165 (139,397 ) 2,972,914 Income tax benefit (expense) - - - - Net Income (Loss) $ 2,047,146 $ 1,065,165 $ (139,397 ) $ 2,972,914 Supplemental Disclosures Revenues from Intercompany Sales - eliminated from sales above 643,294 178,132 362,875 1,184,301 Depreciation and Amortization 247,235 255,848 9,631 512,714 Purchases of Long-lived Assets 642,906 13,150 12,468 668,524 USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended July 31, 2017 $ 1,550,141 $ 2,942,365 $ 551,085 $ 5,043,591 Three Months Ended July 31, 2016 $ 1,983,771 $ 1,970,478 $ 324,411 $ 4,278,660 Nine Months Ended July 31, 2017 $ 6,825,815 $ 7,574,299 $ 1,280,437 $ 15,680,551 Nine Months Ended July 31, 2016 $ 6,939,673 $ 6,733,926 $ 1,126,875 $ 14,800,474

Inventory - Schedule of Compone

Inventory - Schedule of Components of Inventory (Details) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Inventory Disclosure [Abstract]
Raw materials and parts	$ 2,259,228	$ 1,734,798
Work in progress	184,661	88,682
Demo goods	296,391	324,752
Finished goods	157,487	450,693
Total Inventory	$ 2,897,767	$ 2,598,925

Other Current Assets - Summary

Other Current Assets - Summary of Other Current Assets (Details) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits	$ 11,240	$ (349)
Other receivables	40,056	35,543
Value added tax (VAT) receivable	330,701	105,760
Total Other Current Assets	$ 381,997	$ 140,954

Contracts in Progress (Details

Contracts in Progress (Details Narrative) - USD ($)	9 Months Ended
	Jul. 31, 2017	Oct. 31, 2016
Contracts In Progress
Unbilled Receivables	$ 3,733,116	$ 3,406,693
Deferred Revenues	315,880	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 recorded as deferred revenue and Through Life Support (a support package offering three and five years hardware ,software and technical support of products purchased). These amounts are amortized according to the contractual period in question which is over 12 months for warranty obligations or 36 months or 60 months for Through Life Support obligations, according to the package purchased by our customers.
Short term deferred revenue	$ 267,369	464,541
Long term deferred revenue	$ 48,511

Concentrations (Details Narrati

Concentrations (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016	Oct. 31, 2016
Percentage of sales from customers	10.00%	10.00%	10.00%	10.00%
Revenue from customer	$ 1,107,723	$ 2,780,925	$ 3,961,648	$ 3,893,432
Accounts receivable from customer	$ 2,533,470		$ 2,533,470		$ 3,274,204
Customer [Member]
Percentage of sales from customers	22.00%	65.00%	25.00%	26.00%
Accounts receivable from customer	$ 605,831	$ 627,299	$ 605,831	$ 627,299
Customer [Member] | Accounts Receivable [Member]
Percentage of sales from customers	24.00%	26.00%	24.00%	26.00%

Loans and Notes Payable - Sched

Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Total	$ 8,641,724	$ 10,025,924
Less: current portion	(3,187,932)	(846,994)
Loans and notes payable	5,453,792	9,178,930
Secured Debt One [Member]
Total		9,744,123
Secured Debt Two [Member]
Total	7,641,724
Secured Debt Three [Member]
Total	1,000,000
Secured Debt Four [Member]
Total		$ 281,801

Loans and Notes Payable - Sch31

Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) (Parenthetical) - USD ($)	Apr. 28, 2017	Jul. 31, 2017	Oct. 31, 2016
Preferred stock shares issued to settle interest payments		1,000	1,100
Series C Preferred stock, par value		$ 0.001	$ 0.001
Secured debenture, maturity date		May 31, 2018
Debt, interest rate		4.50%
Secured Mortgage [Member]
Secured debenture, maturity date			Oct. 31, 2023
Debt, interest rate			2.75%
Mortgage term			10 years
Convertible senior secured debenture, face value			$ 527,675
Monthly principal payments			$ 4,018
Secured Debt Two [Member]
Secured debenture, maturity date		Apr. 28, 2022
Loan Agreement [Member] | Lender [Member]
Proceeds from bank loan used to repayments	$ 8,000,000
Accrued and unpaid interest	1,133,261
Preferred stock stated value issued	1,000
Secured note principal amount	$ 8,000,000
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 Comprehensi32

Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016
Equity [Abstract]
Balance, beginning of year			$ (2,337,437)	$ 373,516
Total other comprehensive income (loss) for the year - foreign currency translation adjustment	$ 13,307	$ (1,107,355)	781,194	(1,879,556)
Balance, end of period	$ (1,556,243)	$ (1,506,040)	$ (1,556,243)	$ (1,506,040)

Earnings Per Common Share - Sch

Earnings Per Common Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016
NET INCOME PER SHARE:
Net Income	$ 1,124,802	$ 1,100,860	$ 3,971,728	$ 2,972,914
Basic weighted average common shares outstanding	9,110,674	6,741,330	9,104,890	6,741,330
Conversion of Series C Preferred Stock	200,000	2,200,000	200,000	2,200,000
Diluted outstanding shares	9,310,674	8,941,330	9,304,890	8,941,330
Earnings from continuing operations, Basic	$ 0.12	$ 0.16	$ 0.44	$ 0.44
Earnings from continuing operations, Diluted	$ 0.12	$ 0.12	$ 0.43	$ 0.33

Segment Analysis (Details Narra

Segment Analysis (Details Narrative)	9 Months Ended
	Jul. 31, 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		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016	Oct. 31, 2016
Revenues from External Customers	$ 5,043,590	$ 4,278,660	$ 15,680,551	$ 14,800,474
Cost of Revenues	1,982,761	1,432,673	5,979,746	6,210,673
Gross Profit	3,060,829	2,845,987	9,700,805	8,589,801
Research & Development	200,118	292,855	699,106	708,146
Selling, General & Administrative	1,717,264	1,284,916	4,741,968	4,448,009
Total Operating Expenses	1,917,382	1,577,771	5,441,074	5,156,155
Operating Income (Loss)	1,143,447	1,268,216	4,259,731	3,433,646
Other Income	89,931	50,115	204,914	155,777
Interest Expense	(112,089)	(217,471)	(496,430)	(616,509)
Total other income (expense)	(22,158)	(167,356)	(291,516)	(460,732)
Income before income taxes	1,121,289	1,100,860	3,968,215	2,972,914
Income tax benefit (expense)	3,513		3,513
Net Income	1,124,802	1,100,860	3,971,728	2,972,914
Total Assets	25,922,764	21,652,872	25,922,764	21,652,872	$ 22,835,520
Total Liabilities	11,028,399	12,667,326	11,028,399	12,667,326	$ 12,681,007
Revenues from Intercompany Sales - eliminated from sales above	1,407,994	342,546	2,554,212	1,184,301
Depreciation and Amortization	234,701	205,928	631,062	512,714
Purchases of Long-lived Assets	298,494	(81,449)	2,649,060	668,524
USA [Member]
Revenues from External Customers	1,550,141	1,983,771	6,825,815	6,939,673
Europe [Member]
Revenues from External Customers	2,942,365	1,970,478	7,574,299	6,733,926
Australia [Member]
Revenues from External Customers	551,085	324,411	1,280,437	1,126,875
Marine Technology Business [Member]
Revenues from External Customers	3,439,587	2,427,570	9,189,731	7,816,669
Cost of Revenues	1,054,369	622,195	2,753,297	2,690,603
Gross Profit	2,385,218	1,805,375	6,436,434	5,126,066
Research & Development	200,118	292,855	699,106	708,146
Selling, General & Administrative	781,908	422,096	2,165,601	1,905,381
Total Operating Expenses	982,026	714,951	2,864,707	2,613,527
Operating Income (Loss)	1,403,192	1,090,424	3,571,727	2,512,539
Other Income	89,670	50,226	204,653	149,990
Interest Expense	(5,947)	(330,306)	(538,088)	(615,383)
Total other income (expense)	83,723	(280,080)	(333,435)	(465,393)
Income before income taxes	1,486,915	810,344	3,238,292	2,047,146
Income tax benefit (expense)	3,513		3,513
Net Income	1,490,428	810,344	3,241,805	2,047,146
Total Assets	12,300,376	11,883,612	12,300,376	11,883,612
Total Liabilities	1,103,023	1,218,381	1,103,023	1,218,381
Revenues from Intercompany Sales - eliminated from sales above	1,002,339	286,892	1,680,852	643,294
Depreciation and Amortization	130,048	121,600	377,311	247,235
Purchases of Long-lived Assets	252,653	(76,401)	2,541,716	642,906
Marine Engineering Business [Member]
Revenues from External Customers	1,604,003	1,851,090	6,490,820	6,983,805
Cost of Revenues	928,392	810,478	3,226,449	3,520,070
Gross Profit	675,611	1,040,612	3,264,371	3,463,735
Research & Development
Selling, General & Administrative	637,465	578,297	1,979,436	2,180,426
Total Operating Expenses	637,465	578,297	1,979,436	2,180,426
Operating Income (Loss)	38,146	462,315	1,284,935	1,283,309
Other Income	261	(111)	261	5,787
Interest Expense	(15,451)	(110,113)	(214,674)	(223,931)
Total other income (expense)	(15,190)	(110,224)	(214,413)	(218,144)
Income before income taxes	22,956	352,091	1,070,522	1,065,165
Income tax benefit (expense)
Net Income	22,956	352,091	1,070,522	1,065,165
Total Assets	12,529,169	9,613,958	12,529,169	9,613,958
Total Liabilities	1,638,002	640,083	1,638,002	640,083
Revenues from Intercompany Sales - eliminated from sales above	36,030	(63,221)	265,985	178,132
Depreciation and Amortization	101,442	81,129	244,223	255,848
Purchases of Long-lived Assets	45,841	(8,648)	94,874	13,150
Overhead [Member]
Revenues from External Customers
Cost of Revenues
Gross Profit
Research & Development
Selling, General & Administrative	297,891	284,523	596,931	362,202
Total Operating Expenses	297,891	284,523	596,931	362,202
Operating Income (Loss)	(297,891)	(284,523)	(596,931)	(362,202)
Other Income
Interest Expense	(90,691)	222,948	256,332	222,805
Total other income (expense)	(90,691)	222,948	256,332	222,805
Income before income taxes	(388,582)	(61,575)	(340,599)	(139,397)
Income tax benefit (expense)
Net Income	(388,582)	(61,575)	(340,599)	(139,397)
Total Assets	1,093,219	155,302	1,093,219	155,302
Total Liabilities	8,287,374	10,808,862	8,287,374	10,808,862
Revenues from Intercompany Sales - eliminated from sales above	369,625	118,875	607,375	362,875
Depreciation and Amortization	3,211	3,199	9,528	9,631
Purchases of Long-lived Assets		$ 3,600	$ 12,470	$ 12,468