Coda Octopus (CODA) 10-Q 19 Mar 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2018	Mar. 19, 2018
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	Jan. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,352,348
Trading Symbol	CODA
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jan. 31, 2018	Oct. 31, 2017
CURRENT ASSETS
Cash and Cash Equivalents	$ 11,988,981	$ 6,851,539
Accounts Receivables, Net	1,947,973	1,418,114
Inventory	4,165,294	3,652,249
Unbilled Receivables	1,594,063	2,723,172
Other Current Assets	134,734	320,814
Prepaid Expenses	304,401	291,623
Total Current Assets	20,135,446	15,257,511
FIXED ASSETS
Property and Equipment, net	5,258,716	5,213,281
OTHER ASSETS
Goodwill and Other Intangibles, net	3,569,499	3,589,281
Total Assets	28,963,661	24,060,073
CURRENT LIABILITIES
Accounts Payable	668,029	981,994
Accrued Expenses and Other Current Liabilities	412,890	519,208
Loans and Note Payable, current	3,238,256	2,212,951
Deferred Revenues	399,152	402,955
Total Current Liabilities	4,718,327	4,117,108
LONG-TERM LIABILITIES
Deferred revenue, long term	1,155	49,143
Loans and Note Payable, long term	4,674,581	6,066,402
Total Long Term Liabilities	4,675,736	6,115,545
Total Liabilities	9,394,063	10,232,653
STOCKHOLDERS' EQUITY
Preferred stock, Series C, $.001 par value; 5,00,000 shares authorized, 1,000 shares issued and outstanding, as of January 31, 2018 and October 31, 2017	1	1
Common stock, $.001 par value; 150,000,000 shares authorized, 10,262,071 and 9,136,121 shares issued and outstanding as of January 31, 2018 and October 31, 2017, respectively	10,262	9,136
Additional paid-in capital	57,792,705	52,839,651
Accumulated other comprehensive loss	(1,082,494)	(2,038,431)
Accumulated deficit	(37,150,876)	(36,982,937)
Total Stockholders' Equity	19,569,598	13,827,420
Total Liabilities and Stockholders' Equity	$ 28,963,661	$ 24,060,073

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 31, 2018	Oct. 31, 2017
Statement of Financial Position [Abstract]
Series C Preferred stock, par value	$ 0.001	$ 0.001
Series C Preferred stock, shares authorized	500,000	500,000
Series C Preferred stock, shares issued	1,000	1,000
Series C Preferred stock, shares outstanding	1,000	1,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	10,262,071	9,136,121
Common stock, shares outstanding	10,262,071	9,136,121

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Income Statement [Abstract]
Net Revenues	$ 3,050,557	$ 5,358,203
Cost of Revenues	946,107	1,983,046
Gross Profit	2,104,450	3,375,157
OPERATING EXPENSES
Research & Development	670,539	251,230
Selling, General & Administrative	1,505,757	1,405,888
Total Operating Expenses	2,176,296	1,657,118
(LOSS) INCOME FROM OPERATIONS	(71,846)	1,718,039
OTHER INCOME (EXPENSE)
Other Income	6,655	49,416
Interest Expense	(102,748)	(195,494)
Total Other Income (Expense)	(96,093)	(146,078)
NET (LOSS) INCOME BEFORE INCOME TAXES	(167,939)	1,571,961
INCOME TAX BENEFIT
NET (LOSS) INCOME	$ (167,939)	$ 1,571,961
NET (LOSS) INCOME PER SHARE:
Basic	$ (0.02)	$ 0.17
Diluted	$ (0.02)	$ 0.17
WEIGHTED AVERAGE SHARES:
Basic	9,172,837	9,101,493
Diluted	9,172,837	9,101,493
NET (LOSS) INCOME	$ (167,939)	$ 1,571,961
Other Comprehensive Income:
Foreign currency translation adjustment	955,937	421,160
Total Other Comprehensive Income	955,937	421,160
COMPREHENSIVE INCOME	$ 787,998	$ 1,993,121

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Jan. 31, 2018 - 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, 2017	$ 1	$ 9,136	$ 52,839,651	$ (2,038,431)	$ (36,982,937)	$ 13,827,420
Balance, shares at Oct. 31, 2017	1,000	9,136,121
Stock Issued to Investors		$ 1,126	4,953,054			4,954,180
Stock Issued to Investors, shares		1,125,950
Foreign currency translation adjustment				955,937		955,937
Net Loss					(167,939)	(167,939)
Balance at Jan. 31, 2018	$ 1	$ 10,262	$ 57,792,705	$ (1,082,494)	$ (37,150,876)	$ 19,569,598
Balance, shares at Jan. 31, 2018	1,000	10,262,071

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss) Income	$ (167,939)	$ 1,571,961
Adjustments to reconcile net (loss) income to net cash (used in)/provided by operating activities:
Depreciation and amortization	220,170	176,399
Stock compensation		10,500
(Increase) decrease in operating assets:
Accounts receivable	(529,859)	1,371,984
Inventory	(513,045)	(198,724)
Unbilled receivables	1,129,108	(1,114,606)
Other current assets	294,081	(526,736)
Prepaid expenses	(12,778)	(33,842)
Increase (decrease) in operating liabilities:
Accounts payable and other current liabilities	(528,284)	(464,175)
Deferred revenues	(51,791)	(43,000)
Net Cash (used in) provided by Operating Activities	(160,337)	749,761
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(245,822)	(1,680,111)
Deferred tax asset		(3,039)
Restricted cash		13,695
Net Cash used in Investing Activities	(245,822)	(1,669,455)
CASH FLOWS FROM FINANCING ACTIVITIES
(Payments) Receipts - loans and notes payable	(366,516)	109,697
Issuance of stock for cash	4,954,180
Redemption of Series C preferred stock		(1,100,000)
Net Cash Provided (Used) in Financing Activities	4,587,664	(990,303)
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH	955,937	421,160
NET INCREASE (DECREASE) IN CASH	5,137,442	(1,488,837)
CASH AT THE BEGINNING OF THE PERIOD	6,851,539	5,601,767
CASH AT THE END OF THE PERIOD	11,988,981	4,112,930
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$ 91,248	$ 203,994

Basis of Presentation

Basis of Presentation	3 Months Ended
	Jan. 31, 2018
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, 2017 and 2016 which included all information and notes necessary for such complete presentation in conjunction with its Annual Report on Form 10-K filed on January 30, 2018 (the “Annual Report”). The results of operations for the interim period ended January 31, 2018 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, 2017 included in the Annual Report. 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 January 31, 2018 and the results of operations, comprehensive income and cash flows for the interim periods ended January 31, 2018 and 2017. 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, Australian based operations are measured using Australian Dollars and Norwegian based operations are measured using Norwegian Kroner and Danish based operations are measured using Danish 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 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	3 Months Ended
	Jan. 31, 2018
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 line of credit. 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.

Foreign Currency Translation

Foreign Currency Translation	3 Months Ended
	Jan. 31, 2018
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 reporting period. 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	3 Months Ended
	Jan. 31, 2018
Inventory Disclosure [Abstract]
Inventory	NOTE 4 – INVENTORY Inventory is stated at the lower of cost (weighted average method) or market. Inventory consisted of the following components: January 31, 2018 October 31, 2017 Raw materials and parts $ 3,427,366 $ 2,651,511 Work in progress 335,774 501,692 Demo goods - 349,480 Finished goods 402,154 149,566 Total Inventory $ 4,165,294 $ 3,652,249

Other Current Assets

Other Current Assets	3 Months Ended
	Jan. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	NOTE 5 – OTHER CURRENT ASSETS Other current assets consisted of the following components: January 31, 2018 October 31, 2017 Deposits $ 11,414 $ 11,255 Other receivables 46,283 73,600 Value added tax (VAT) receivable 77,036 235,959 Total Other Current Assets $ 134,734 $ 320,814

Estimates

Estimates	3 Months Ended
	Jan. 31, 2018
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 valuation of accounts receivables, valuation of inventory, valuation of Deferred Tax Assets (“DTAs”) and estimated earnings and the valuation of goodwill.

Contracts in Progress

Contracts in Progress	3 Months Ended
	Jan. 31, 2018
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 $1,594,063 and $2,723,172 as of January 31, 2018 and October 31, 2017, respectively. Our Deferred Revenue of $399,152 and $402,955 as of January 31, 2018 and October 31, 2017, respectively, consists of billings in excess of costs and revenues received as part of our warranty obligations upon completing a sale – and also subscriptions by customers for ongoing technical support of equipment purchased - 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 January 31, 2018 and October 31, 2017, 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 with these amounts amortized over 12 months, our stated warranty period, from the date of sale and 60 months for Through Life Support. These amounts are stated on the balance sheets as a component of Deferred Revenue of $84,192 and $76,574 as of January 31, 2018 and October 31, 2017, respectively.

Concentrations

Concentrations	3 Months Ended
	Jan. 31, 2018
Risks and Uncertainties [Abstract]
Concentrations	NOTE 8 - CONCENTRATIONS Significant Customers During the three months ended January 31, 2018, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenues from this customer were $364,661, or 12% of net revenues. Total accounts receivable from this customer at January 31, 2018 were $227,420 or 12% of accounts receivable. During the three months ended January 31, 2017, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $1,935,662, or 36% of net revenues during the period. Total accounts receivable from these customers at January 31, 2017 was $129,696 or 7% of accounts receivable.

Loans and Notes Payable

Loans and Notes Payable	3 Months Ended
	Jan. 31, 2018
Debt Disclosure [Abstract]
Loans and Notes Payable	NOTE 9 – LOANS AND NOTES PAYABLE January 31, October 31, 2018 2017 Secured note payable to HSBC with interest payable on the 28th day of each month at 4.56% per annum 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 will be applied to reduce the principal outstanding under the Secured Loan. The loan is scheduled to mature on April 28, 2022, based on the payment scheduled in the Loan Agreement it is expected that the Loan will be repaid in full in approximately 45 months. $ 6,912,837 $ 7,279,353 One of the subsidiaries has an unsecured working capital loan from the CEO of the Group. The note is due on November 30, 2018 and carries an interest rate of 4.5%. 1,000,000 1,000,000 Total 7,912,837 8,279,353 Less: current portion (3,238,256 ) (2,212,951 ) Total Long-Term Loans and Notes Payable $ 4,674,581 $ 6,066,402

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Jan. 31, 2018
Equity [Abstract]
Accumulated Other Comprehensive Income	NOTE 10– ACCUMULATED OTHER COMPREHENSIVE INCOME January 31, October 31, 2018 2017 Balance, beginning of year $ (2,038,431 ) $ (2,337,437 ) Total other comprehensive income (loss) for the year - foreign currency translation adjustment 955,937 299,006 Balance, end of period $ (1,082,494 ) $ (2,038,431 )

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Jan. 31, 2018
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 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. 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	3 Months Ended
	Jan. 31, 2018
NET (LOSS) INCOME PER SHARE:
Earnings Per Common Share	NOTE 12 – EARNINGS PER COMMON SHARE Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2018 2017 Numerator: Net (Loss) Income $ (167,939 ) $ 1,571,961 Denominator: Basic weighted average common shares outstanding 9,172,837 9,101,493 Conversion of Series C Preferred Stock - - Diluted outstanding shares 9,172,837 9,101,493 Earnings from continuing operations Basic $ (0.02 ) $ 0.17 Diluted $ (0.02 ) $ 0.17 Common stock equivalents of 200,000 shares were excluded from the January 31, 2018, computation as their effect would be anti-dilutive.

Segment Analysis

Segment Analysis	3 Months Ended
	Jan. 31, 2018
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 assets and operating balances by reportable segment as of and for the three months ended January 31, 2018 and 2017 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 months ended January 31, 2018 and 2017 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2018 Revenues from External Customers $ 2,042,942 $ 1,007,615 $ - $ 3,050,557 Cost of Revenues 430,131 515,976 - 946,107 Gross Profit 1,612,811 491,639 - 2,104,450 Research & Development 442,274 228,265 - 670,539 Selling, General & Administrative 577,565 630,874 297,318 1,505,757 Total Operating Expenses 1,019,839 859,139 297,318 2,176,296 Operating Income (Loss) 592,972 (367,500 ) (297,318 ) (71,846 ) Other Income (Expense) Other Income 6,655 - - 6,655 Interest (Expense) (4,419 ) (14,949 ) (83,380 ) (102,748 ) Total other income (expense) 2,236 (14,949 ) (83,380 ) (96,093 ) Income (Loss) before income taxes 595,208 (382,449 ) (380,698 ) (167,939 ) Income tax benefit (expense) - - - - Net Income (Loss) $ 595,208 $ (382,449 ) $ (380,698 ) $ (167,939 ) Supplemental Disclosures Total Assets $ 12,419,192 $ 11,095,135 $ 5,449,334 $ 28,963,661 Total Liabilities 862,542 1,405,271 7,126,250 9,394,063 Revenues from Intercompany Sales - eliminated from sales above 471,218 10,189 675,000 1,156,407 Depreciation and Amortization 137,518 79,715 2,937 220,170 Purchases of Long-lived Assets 201,917 43,905 - 245,822 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2017 Revenues from External Customers $ 2,450,599 $ 2,907,604 $ - $ 5,358,203 Cost of Revenues 730,021 1,253,025 - 1,983,046 Gross Profit 1,720,578 1,654,579 - 3,375,157 Research & Development 251,230 - - 251,230 Selling, General & Administrative 574,648 686,411 144,829 1,405,888 Total Operating Expenses 825,878 686,411 144,829 1,657,118 Operating Income (Loss) 894,700 968,168 (144,829 ) 1,718,039 Other Income (Expense) Other Income 49,416 - - 49,416 Interest (Expense) (350,334 ) (124,221 ) 279,061 (195,494 ) Total other income (expense) (300,918 ) (124,221 ) 279,061 (146,078 ) Income before income taxes 593,782 843,947 134,232 1,571,961 Income tax benefit (expense) - - - - Net Income $ 593,782 $ 843,947 $ 134,232 $ 1,571,961 Supplemental Disclosures Total Assets $ 10,586,262 $ 12,249,349 $ 506,050 $ 23,341,661 Total Liabilities 843,107 1,716,788 9,723,632 12,283,527 Revenues from Intercompany Sales - eliminated from sales above 172,853 59,899 118,875 351,627 Depreciation and Amortization 101,463 71,725 3,211 176,399 Purchases of Long-lived Assets 1,645,460 22,181 12,470 1,680,111 USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended January 31, 2018 $ 1,087,626 $ 1,822,036 $ 140,895 $ 3,050,557 Three Months Ended January 31, 2017 $ 2,749,768 $ 2,017,036 $ 591,399 $ 5,358,203

Income Taxes

Income Taxes	3 Months Ended
	Jan. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 14 – INCOME TAXES On December 22, 2017, the US Congress passed the Tax Cuts and Jobs Act, which reduced the corporate tax rate from 39% to 21%. This change would reduce the deferred tax asset, from $4,270,500 to $2,299,500 as of October 31, 2017. The Company has provided full valuation allowance against the deferred tax asset. There will not be an impact to these financial statements because of this tax law change. However, should our deferred tax asset reverse we will not recognize benefits in the amounts previously expected.

Subsequent Events

Subsequent Events	3 Months Ended
	Jan. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 15 - SUBSEQUENT EVENTS 1. Pursuant to an agreement entered into in June 2017, on February 1, 2018 the Company issued an aggregate of 6,250 shares of its common stock to two consultants for services rendered at a value of $4.62 for each share of common stock. 2. On February 5, 2018, the Company sold 75,000 shares of its common stock to one of its’ directors, at a price of $4.61 per share. The purchase price per share reflects the market value of the Company’s common stock, which, for purposes of stock sales to directors, is defined by the Nasdaq Capital Market as the consolidated closing bid price of the Company’s stock as of February 2, 2018. This transaction was part of the Company’s private placement that was completed on January 31, 2018 and which was previously disclosed (“the Offering”). 3. On February 12, 2018, pursuant to certain existing pro-rata contractual rights under the Offering dated January 31, 2018 (See Part II (Other Information) Item 2, of this report), the Company sold 2,777 shares of common stock at a price of $4.61 per share to one of the purchasers who participated in the Offering. 4. On or around March 15, 2018, the Company repaid to HSBC NA $4,877,793, reducing the outstanding balance to HSBC under the Secured Loan disclosed in Note 9 of the unaudited Consolidated Financial Statements. This payment reduces the principal amount outstanding under this HSBC Secured Loan to $1,917,602 as of March 15, 2018. The Principal Amount will be re-amortized and the monthly payments under this Secured Loan will be approximately $43,777 comprising both principal and interest. The Mandatory Principal Payments called for in the original note have been satisfied with this payment.

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Jan. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	Inventory consisted of the following components: January 31, 2018 October 31, 2017 Raw materials and parts $ 3,427,366 $ 2,651,511 Work in progress 335,774 501,692 Demo goods - 349,480 Finished goods 402,154 149,566 Total Inventory $ 4,165,294 $ 3,652,249

Other Current Assets (Tables)

Other Current Assets (Tables)	3 Months Ended
	Jan. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Current Assets	Other current assets consisted of the following components: January 31, 2018 October 31, 2017 Deposits $ 11,414 $ 11,255 Other receivables 46,283 73,600 Value added tax (VAT) receivable 77,036 235,959 Total Other Current Assets $ 134,734 $ 320,814

Loans and Notes Payable (Tables

Loans and Notes Payable (Tables)	3 Months Ended
	Jan. 31, 2018
Debt Disclosure [Abstract]
Schedule of Loans and Notes Payable	January 31, October 31, 2018 2017 Secured note payable to HSBC with interest payable on the 28th day of each month at 4.56% per annum 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 will be applied to reduce the principal outstanding under the Secured Loan. The loan is scheduled to mature on April 28, 2022, based on the payment scheduled in the Loan Agreement it is expected that the Loan will be repaid in full in approximately 45 months. $ 6,912,837 $ 7,279,353 One of the subsidiaries has an unsecured working capital loan from the CEO of the Group. The note is due on November 30, 2018 and carries an interest rate of 4.5%. 1,000,000 1,000,000 Total 7,912,837 8,279,353 Less: current portion (3,238,256 ) (2,212,951 ) Total Long-Term Loans and Notes Payable $ 4,674,581 $ 6,066,402

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Jan. 31, 2018
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	January 31, October 31, 2018 2017 Balance, beginning of year $ (2,038,431 ) $ (2,337,437 ) Total other comprehensive income (loss) for the year - foreign currency translation adjustment 955,937 299,006 Balance, end of period $ (1,082,494 ) $ (2,038,431 )

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Jan. 31, 2018
NET (LOSS) INCOME PER SHARE:
Schedule of Earnings Per Share Basic and Diluted	Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2018 2017 Numerator: Net (Loss) Income $ (167,939 ) $ 1,571,961 Denominator: Basic weighted average common shares outstanding 9,172,837 9,101,493 Conversion of Series C Preferred Stock - - Diluted outstanding shares 9,172,837 9,101,493 Earnings from continuing operations Basic $ (0.02 ) $ 0.17 Diluted $ (0.02 ) $ 0.17

Segment Analysis (Tables)

Segment Analysis (Tables)	3 Months Ended
	Jan. 31, 2018
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 months ended January 31, 2018 and 2017 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2018 Revenues from External Customers $ 2,042,942 $ 1,007,615 $ - $ 3,050,557 Cost of Revenues 430,131 515,976 - 946,107 Gross Profit 1,612,811 491,639 - 2,104,450 Research & Development 442,274 228,265 - 670,539 Selling, General & Administrative 577,565 630,874 297,318 1,505,757 Total Operating Expenses 1,019,839 859,139 297,318 2,176,296 Operating Income (Loss) 592,972 (367,500 ) (297,318 ) (71,846 ) Other Income (Expense) Other Income 6,655 - - 6,655 Interest (Expense) (4,419 ) (14,949 ) (83,380 ) (102,748 ) Total other income (expense) 2,236 (14,949 ) (83,380 ) (96,093 ) Income (Loss) before income taxes 595,208 (382,449 ) (380,698 ) (167,939 ) Income tax benefit (expense) - - - - Net Income (Loss) $ 595,208 $ (382,449 ) $ (380,698 ) $ (167,939 ) Supplemental Disclosures Total Assets $ 12,419,192 $ 11,095,135 $ 5,449,334 $ 28,963,661 Total Liabilities 862,542 1,405,271 7,126,250 9,394,063 Revenues from Intercompany Sales - eliminated from sales above 471,218 10,189 675,000 1,156,407 Depreciation and Amortization 137,518 79,715 2,937 220,170 Purchases of Long-lived Assets 201,917 43,905 - 245,822 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2017 Revenues from External Customers $ 2,450,599 $ 2,907,604 $ - $ 5,358,203 Cost of Revenues 730,021 1,253,025 - 1,983,046 Gross Profit 1,720,578 1,654,579 - 3,375,157 Research & Development 251,230 - - 251,230 Selling, General & Administrative 574,648 686,411 144,829 1,405,888 Total Operating Expenses 825,878 686,411 144,829 1,657,118 Operating Income (Loss) 894,700 968,168 (144,829 ) 1,718,039 Other Income (Expense) Other Income 49,416 - - 49,416 Interest (Expense) (350,334 ) (124,221 ) 279,061 (195,494 ) Total other income (expense) (300,918 ) (124,221 ) 279,061 (146,078 ) Income before income taxes 593,782 843,947 134,232 1,571,961 Income tax benefit (expense) - - - - Net Income $ 593,782 $ 843,947 $ 134,232 $ 1,571,961 Supplemental Disclosures Total Assets $ 10,586,262 $ 12,249,349 $ 506,050 $ 23,341,661 Total Liabilities 843,107 1,716,788 9,723,632 12,283,527 Revenues from Intercompany Sales - eliminated from sales above 172,853 59,899 118,875 351,627 Depreciation and Amortization 101,463 71,725 3,211 176,399 Purchases of Long-lived Assets 1,645,460 22,181 12,470 1,680,111 USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended January 31, 2018 $ 1,087,626 $ 1,822,036 $ 140,895 $ 3,050,557 Three Months Ended January 31, 2017 $ 2,749,768 $ 2,017,036 $ 591,399 $ 5,358,203

Inventory - Schedule of Compone

Inventory - Schedule of Components of Inventory (Details) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Inventory Disclosure [Abstract]
Raw materials and parts	$ 3,427,366	$ 2,651,511
Work in progress	335,774	501,692
Demo goods		349,480
Finished goods	402,154	149,566
Total Inventory	$ 4,165,294	$ 3,652,249

Other Current Assets - Summary

Other Current Assets - Summary of Other Current Assets (Details) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits	$ 11,414	$ 11,255
Other receivables	46,283	73,600
Value added tax (VAT) receivable	77,036	235,959
Total Other Current Assets	$ 134,734	$ 320,814

Contracts in Progress (Details

Contracts in Progress (Details Narrative) - USD ($)	3 Months Ended
	Jan. 31, 2018	Oct. 31, 2017
Contracts In Progress
Unbilled receivables	$ 1,594,063	$ 2,723,172
Deferred revenues	399,152	402,955
Billings in excess 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 with these amounts amortized over 12 months, our stated warranty period, from the date of sale and 60 months for Through Life Support.
Component of deferred revenue	$ 84,192	$ 76,574

Concentrations (Details Narrati

Concentrations (Details Narrative) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017
Accounts receivable from customer	$ 1,947,973		$ 1,418,114
One Customer [Member]
Percentage of sales from customers	10.00%
Customer [Member] | Revenue [Member]
Percentage of sales from customers	12.00%	36.00%
Revenue from customer	$ 364,661	$ 1,935,662
Customer [Member] | Accounts Receivable [Member]
Percentage of sales from customers	12.00%	7.00%
Accounts receivable from customer	$ 227,420	$ 129,696
Two Customer [Member]
Percentage of sales from customers		10.00%

Loans and Notes Payable - Sched

Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Total	$ 7,912,837	$ 8,279,353
Less: current portion	(3,238,256)	(2,212,951)
Total Long-Term Loans and Notes Payable	4,674,581	6,066,402
Secured Debt One [Member]
Total	6,912,837	7,279,353
Secured Debt Two [Member]
Total	$ 1,000,000	$ 1,000,000

Loans and Notes Payable - Sch33

Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2018	Oct. 31, 2017
Secured Debt One [Member]
Loan, annual interest rate	4.56%	4.56%
Monthly principal and interest payment	$ 149,350	$ 149,350
Additional amount required to reduce the principal outstanding	$ 700,000	$ 700,000
Secured debenture, maturity date	Apr. 28, 2022	Apr. 28, 2022
Secured Debt Two [Member]
Secured debenture, maturity date	Nov. 30, 2018	Nov. 30, 2018
Debt, interest rate	4.50%	4.50%

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017
Equity [Abstract]
Balance, beginning of year	$ (2,038,431)	$ (2,337,437)	$ (2,337,437)
Total other comprehensive income (loss) for the year - foreign currency translation adjustment	955,937	$ 421,160	299,006
Balance, end of period	$ (1,082,494)		$ (2,038,431)

Earnings Per Common Share (Deta

Earnings Per Common Share (Details Narrative)	3 Months Ended
	Jan. 31, 2018shares
NET (LOSS) INCOME PER SHARE:
Anti-dilutive common stock equivalents excluded from EPS	200,000

Earnings Per Common Share - Sch

Earnings Per Common Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
NET (LOSS) INCOME PER SHARE:
Net (Loss) Income	$ (167,939)	$ 1,571,961
Basic weighted average common shares outstanding	9,172,837	9,101,493
Conversion of Series C Preferred Stock
Diluted outstanding shares	9,172,837	9,101,493
Earnings from continuing operations, Basic	$ (0.02)	$ 0.17
Earnings from continuing operations, Diluted	$ (0.02)	$ 0.17

Segment Analysis (Details Narra

Segment Analysis (Details Narrative)	3 Months Ended
	Jan. 31, 2018Integer
Segment Reporting [Abstract]
Number of Reportable Segments	2

Segment Analysis - Schedule of

Segment Analysis - Schedule of Segment Reporting Information (Details) - USD ($)	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017
Revenues from External Customers	$ 3,050,557	$ 5,358,203
Cost of Revenues	946,107	1,983,046
Gross Profit	2,104,450	3,375,157
Research & Development	670,539	251,230
Selling, General & Administrative	1,505,757	1,405,888
Total Operating Expenses	2,176,296	1,657,118
Operating Income (Loss)	(71,846)	1,718,039
Other Income	6,655	49,416
Interest (Expense)	(102,748)	(195,494)
Total other income (expense)	(96,093)	(146,078)
Income (Loss) before income taxes	(167,939)	1,571,961
Income tax benefit (expense)
Net (Loss) Income	(167,939)	1,571,961
Total Assets	28,963,661	23,341,661	$ 24,060,073
Total Liabilities	9,394,063	12,283,527	$ 10,232,653
Revenues from Intercompany Sales - eliminated from sales above	1,156,407	351,627
Depreciation and Amortization	220,170	176,399
Purchases of Long-lived Assets	245,822	1,680,111
USA [Member]
Revenues from External Customers	1,087,626	2,749,768
Europe [Member]
Revenues from External Customers	1,822,036	2,017,036
Australia [Member]
Revenues from External Customers	140,895	591,399
Marine Technology Business (Products) [Member]
Revenues from External Customers	2,042,942	2,450,599
Cost of Revenues	430,131	730,021
Gross Profit	1,612,811	1,720,578
Research & Development	442,274	251,230
Selling, General & Administrative	577,565	574,648
Total Operating Expenses	1,019,839	825,878
Operating Income (Loss)	592,972	894,700
Other Income	6,655	49,416
Interest (Expense)	(4,419)	(350,334)
Total other income (expense)	2,236	(300,918)
Income (Loss) before income taxes	595,208	593,782
Income tax benefit (expense)
Net (Loss) Income	595,208	593,782
Total Assets	12,419,192	10,586,262
Total Liabilities	862,542	843,107
Revenues from Intercompany Sales - eliminated from sales above	471,218	172,853
Depreciation and Amortization	137,518	101,463
Purchases of Long-lived Assets	201,917	1,645,460
Marine Engineering Business (Services) [Member]
Revenues from External Customers	1,007,615	2,907,604
Cost of Revenues	515,976	1,253,025
Gross Profit	491,639	1,654,579
Research & Development	228,265
Selling, General & Administrative	630,874	686,411
Total Operating Expenses	859,139	686,411
Operating Income (Loss)	(367,500)	968,168
Other Income
Interest (Expense)	(14,949)	(124,221)
Total other income (expense)	(14,949)	(124,221)
Income (Loss) before income taxes	(382,449)	843,947
Income tax benefit (expense)
Net (Loss) Income	(382,449)	843,947
Total Assets	11,095,135	12,249,349
Total Liabilities	1,405,271	1,716,788
Revenues from Intercompany Sales - eliminated from sales above	10,189	59,899
Depreciation and Amortization	79,715	71,725
Purchases of Long-lived Assets	43,905	22,181
Overhead [Member]
Revenues from External Customers
Cost of Revenues
Gross Profit
Research & Development
Selling, General & Administrative	297,318	144,829
Total Operating Expenses	297,318	144,829
Operating Income (Loss)	(297,318)	(144,829)
Other Income
Interest (Expense)	(83,380)	279,061
Total other income (expense)	(83,380)	279,061
Income (Loss) before income taxes	(380,698)	134,232
Income tax benefit (expense)
Net (Loss) Income	(380,698)	134,232
Total Assets	5,449,334	506,050
Total Liabilities	7,126,250	9,723,632
Revenues from Intercompany Sales - eliminated from sales above	675,000	118,875
Depreciation and Amortization	2,937	3,211
Purchases of Long-lived Assets		$ 12,470

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2018	Oct. 31, 2017
Income Taxes Details Narrative
Corporate tax rate	39.00%
Income tax deduction tax rate	21.00%
Deferred tax assets		$ 4,270,500
Change in deferred tax assets		$ 2,299,500

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member]	Mar. 15, 2018USD ($)	Feb. 12, 2018$ / sharesshares	Feb. 05, 2018$ / sharesshares	Feb. 01, 2018Integer$ / sharesshares
Number of consultants for services | Integer				2
Number of common stock shares issued for services | shares				6,250
Common stock share issued price | $ / shares				$ 4.62
Number of common shares sold | shares		2,777
Sale of stock, price per share | $ / shares		$ 4.61
HSBC Secured Loan [Member]
Repayment of debt | $	$ 4,877,793
Secured Debt | $	1,917,602
Monthly principal and interest payment | $	$ 43,777
Director One [Member]
Number of common shares sold | shares			75,000
Sale of stock, price per share | $ / shares			$ 4.61