Coda Octopus (CODA) 10-Q 14 Jun 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 30, 2018	Jun. 13, 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	Apr. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,415,416
Trading Symbol	CODA
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Apr. 30, 2018	Oct. 31, 2017
CURRENT ASSETS
Cash and Cash Equivalents	$ 6,936,567	$ 6,851,539
Accounts Receivables, Net	2,120,010	1,418,114
Inventory	4,000,163	3,652,249
Unbilled Receivables	1,585,907	2,723,172
Other Current Assets	107,728	320,814
Prepaid Expenses	263,698	291,623
Total Current Assets	15,014,073	15,257,511
FIXED ASSETS
Property and Equipment, net	5,347,630	5,213,281
OTHER ASSETS
Goodwill and Other Intangibles, net	3,580,470	3,589,281
Total Assets	23,942,173	24,060,073
CURRENT LIABILITIES
Accounts Payable	616,479	981,994
Accrued Expenses and Other Current Liabilities	416,465	519,208
Loans and Note Payable, current	1,453,686	2,212,951
Deferred Revenues	293,795	402,955
Total Current Liabilities	2,780,425	4,117,108
LONG-TERM LIABILITIES
Deferred revenue, long term	55,270	49,143
Loans and Note Payable, long term	1,301,905	6,066,402
Total Long Term Liabilities	1,357,175	6,115,545
Total Liabilities	4,137,600	10,232,653
STOCKHOLDERS' EQUITY
Preferred stock, Series C, $.001 par value; 5,000,000 shares authorized, 1,000 shares issued and outstanding, as of April 30, 2018 and October 31, 2017	1	1
Common stock, $.001 par value; 150,000,000 shares authorized, 10,415,416 and 9,136,121 shares issued and outstanding as of April 30, 2018 and October 31, 2017, respectively	10,415	9,136
Additional paid-in capital	58,485,853	52,839,651
Accumulated other comprehensive loss	(1,463,495)	(2,038,431)
Accumulated deficit	(37,228,201)	(36,982,937)
Total Stockholders' Equity	19,804,573	13,827,420
Total Liabilities and Stockholders' Equity	$ 23,942,173	$ 24,060,073

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 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	5,000,000	5,000,000
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	10,415,416	9,136,121
Common stock, shares outstanding	10,415,416	9,136,121

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Income Statement [Abstract]
Net Revenues	$ 3,526,396	$ 5,278,758	$ 6,576,953	$ 10,636,961
Cost of Revenues	940,858	2,013,940	1,886,965	3,996,985
Gross Profit	2,585,538	3,264,818	4,689,988	6,639,976
OPERATING EXPENSES
Research & Development	640,477	247,758	1,311,016	498,988
Selling, General & Administrative	2,025,630	1,639,892	3,531,387	3,045,780
Total Operating Expenses	2,666,107	1,887,650	4,842,403	3,544,768
(LOSS) INCOME FROM OPERATIONS	(80,569)	1,377,168	(152,415)	3,095,208
OTHER INCOME (EXPENSE)
Other Income	84,015	86,643	90,670	136,059
Interest Expense	(80,741)	(188,847)	(183,489)	(384,341)
Total Other Income (Expense)	3,274	(102,204)	(92,819)	(248,282)
NET (LOSS) INCOME BEFORE INCOME TAXES	(77,295)	1,274,964	(245,234)	2,846,926
INCOME TAX EXPENSE	(30)		(30)
NET (LOSS) INCOME	$ (77,325)	$ 1,274,964	$ (245,264)	$ 2,846,926
NET (LOSS) INCOME PER SHARE:
Basic	$ (0.01)	$ 0.14	$ (0.03)	$ 0.31
Diluted	$ (0.01)	$ 0.14	$ (0.03)	$ 0.31
WEIGHTED AVERAGE SHARES:
Basic	10,353,876	9,102,192	9,754,033	9,101,837
Diluted	10,353,876	9,302,192	9,754,033	9,301,837
NET (LOSS) INCOME	$ (77,325)	$ 1,274,964	$ (245,264)	$ 2,846,926
Other Comprehensive (Loss) Income
Foreign currency translation adjustment	(381,001)	346,727	574,936	767,887
Total Other Comprehensive (Loss) Income	(381,001)	346,727	574,936	767,887
COMPREHENSIVE (LOSS) INCOME	$ (458,326)	$ 1,621,691	$ 329,672	$ 3,614,813

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Apr. 30, 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		$ 1,204	5,311,528			5,312,732
Stock Issued to Investors, shares		1,203,727
Stock Issued to Consultants		$ 12	57,238			57,250
Stock Issued to Consultants, shares		12,500
Stock Issued to Former Officer		$ 63	277,436			277,499
Stock Issued to Former Officer, shares		63,068
Foreign currency translation adjustment				574,936		574,936
Net Loss					(245,264)	(245,264)
Balance at Apr. 30, 2018	$ 1	$ 10,415	$ 58,485,853	$ (1,463,495)	$ (37,228,201)	$ 19,804,573
Balance, shares at Apr. 30, 2018	1,000	10,415,416

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (245,264)	$ 2,846,926
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	396,056	396,361
Stock compensation	334,749	10,500
Realized gain on the sale of fixed assets		(21,076)
(Increase) decrease in operating assets:
Accounts receivable	(701,896)	611,806
Inventory	(347,914)	(43,731)
Unbilled receivables	1,137,266	(782,358)
Other current assets	213,085	(284,167)
Prepaid expenses	27,925	(141,746)
Deferred tax asset		85,904
Increase (decrease) in operating liabilities:
Accounts payable and other current liabilities	(468,259)	(40,190)
Deferred revenues	(103,033)	(136,671)
Net Cash Provided by Operating Activities	242,715	2,501,558
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(521,594)	(2,350,566)
Proceeds from the sale of fixed assets		327,000
Restricted cash		13,695
Net Cash (used in) Investing activities	(521,594)	(2,009,871)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments - loans and notes payable	(5,523,762)	(25,927)
Issuance of stock for cash	5,312,732
Redemption of Series C preferred stock		(1,100,000)
Net Cash (used in) Financing Activities	(211,029)	(1,125,927)
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH	574,936	767,887
NET INCREASE IN CASH	85,028	133,647
CASH AT THE BEGINNING OF THE PERIOD	6,851,539	5,601,767
CASH AT THE END OF THE PERIOD	6,936,567	5,735,414
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	160,861	397,091
Non-cash transactions
Preferred stock issued for accrued interest		1,000,000
Payment of secured debt directly with proceeds of note payable		$ 8,000,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Apr. 30, 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 report on Form 10K filed on January 30, 2018 (the “Form 10-K”). The results of operations for the interim period ended April 30, 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, which are contained in the Form 10-K. The accompanying unaudited interim consolidated financial statements contain all adjustments (consisting of normal recurring items) which are, in the opinion of management, necessary for a fair statement of the Company’s financial position as of April 30, 2018 and the results of operations, comprehensive income and cash flows for the interim periods ended April 30, 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 Sterling, Australian based operations are measured using Australian Dollars and Norwegian based operations are measured using Norwegian Kroner as the functional currencies. Foreign currency translation gains and losses are recorded as a change in other comprehensive income. Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of our foreign operations are also included in other comprehensive income.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Apr. 30, 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 line 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	6 Months Ended
	Apr. 30, 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 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	6 Months Ended
	Apr. 30, 2018
Inventory Disclosure [Abstract]
Inventory	NOTE 4 – INVENTORY Inventory is stated at the lower of cost (weighted average method) or net realized value. Inventory consisted of the following components: April 30, 2018 October 31, 2017 Raw materials and parts $ 3,305,349 $ 2,651,511 Work in progress 147,338 501,692 Demo goods - 349,480 Finished goods 547,476 149,566 Total Inventory $ 4,000,163 $ 3,652,249

Other Current Assets

Other Current Assets	6 Months Ended
	Apr. 30, 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: April 30, 2018 October 31, 2017 Deposits $ 4,860 $ 11,255 Other receivables 44,638 73,600 Value added tax (VAT) receivable 58,229 235,959 Total Other Current Assets $ 107,728 $ 320,814

Estimates

Estimates	6 Months Ended
	Apr. 30, 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 (DTA’s) and the valuation of goodwill.

Contracts in Progress

Contracts in Progress	6 Months Ended
	Apr. 30, 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 $1,585,907 and $2,723,172 as of April 30, 2018 and October 31, 2017, respectively. Our Deferred Revenue of $293,795 and $402,955 as of April 30, 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 – elaborated further in the last paragraph of this note. Billings in excess of cost and estimated earnings on uncompleted contracts represent project invoices billed to customers that have not been earned as of the date of the balance sheets. These amounts are stated on the balance sheets as a component of Deferred Revenue of $0 as of April 30, 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 (which is a support package (for major software upgrades, service and technical support for the life cycle of the product) 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 $61,494 and $76,574 as of April 30, 2018 and October 31, 2017, respectively.

Concentrations

Concentrations	6 Months Ended
	Apr. 30, 2018
Risks and Uncertainties [Abstract]
Concentrations	NOTE 8 – CONCENTRATIONS Significant Customers During the three months ended April 30, 2018, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $1,325,531, or 38% of net revenues during the period. Total accounts receivable from these customers at April 30, 2018 were $998,606 or 47% of accounts receivable. During the three months ended April 30, 2017, the Company had a customer from whom it generated sales greater than 10% of net revenues. Revenues from this customer were $1,016,784, or 19% of net revenues during the period. Total accounts receivable from this customer at April 30, 2017 was $189,110 or 7% of accounts receivable. During the six months ended April 30, 2018, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $1,612,490, or 25% of net revenues during the period. Total accounts receivable from these customers at April 30, 2018 were $998,606 or 47% of accounts receivable. During the six months ended April 30, 2017, the Company had a customer from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $2,853,925, or 27% of net revenues during the period. Total accounts receivable from this customer at April 30, 2017 was $189,110 or 7% of accounts receivable.

Loans and Notes Payable

Loans and Notes Payable	6 Months Ended
	Apr. 30, 2018
Debt Disclosure [Abstract]
Loans and Notes Payable	NOTE 9 – LOANS AND NOTES PAYABLE April 30, 2018 October 31, 2017 Secured note payable to HSBC NA with interest payable on the 28 th $ 1,755,591 $ 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 2,755,591 8,279,353 Less: current portion (1,453,686 ) (2,212,951 ) Total Long-Term Loans and Notes Payable $ 1,301,905 $ 6,066,402 We have an unused line of credit with HSBC UK to use specifically for bank guarantees. It is equivalent to $455,000. As of April 30, 2018, the balance is $0.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Apr. 30, 2018
Equity [Abstract]
Accumulated Other Comprehensive Income	NOTE 10– ACCUMULATED OTHER COMPREHENSIVE INCOME April 30, 2018 October 31, 2017 Balance, beginning of year $ (2,038,431 ) $ (2,337,437 ) Total other comprehensive income (loss) for the year - foreign currency translation adjustment 574,936 299,006 Balance, end of period $ (1,463,495 ) $ (2,038,431 )

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Apr. 30, 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 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 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. We have implemented the pronouncement and have determined that it will not have a significant impact on our consolidated financial statements and related disclosures. With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements.

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
	Apr. 30, 2018
NET (LOSS) INCOME PER SHARE:
Earnings Per Common Share	NOTE 12 – EARNINGS PER COMMON SHARE Fiscal Period Three Months Ended April 30, 2018 Three Months Ended April 30, 2017 Six Months Ended April 30, 2018 Six Months Ended April 30, 2017 Numerator: Net (Loss) Income $ (77,325 ) $ 1,274,964 $ (245,264 ) $ 2,846,926 Denominator: Basic weighted average common shares outstanding 10,353,876 9,102,192 9,754,033 9,101,837 Conversion of Series C Preferred Stock 0 200,000 0 200,000 Diluted outstanding shares 10,353,876 9,302,192 9,754,033 9,301,837 Earnings from continuing operations Basic $ (0.01 ) $ 0.14 $ (0.03 ) $ 0.31 Diluted $ (0.01 ) $ 0.14 $ (0.03 ) $ 0.31 Common stock equivalents of 200,000 shares were excluded from the April 30, 2018, computation as their effect would be anti-dilutive.

Segment Analysis

Segment Analysis	6 Months Ended
	Apr. 30, 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 (together “Marine Engineering Business” or “Services Segment”) operate as contractors, and the balance of our operations are comprised of product sales (“Marine Technology Business” or “Products Segment”). Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs (“Overheads”). 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 in our Consolidated Financial Statements of October 31, 2017. There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes. The following table summarizes segment asset and operating balances by reportable segment as of and for the three and six months ended April 30, 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 April 30, 2018 and 2017 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2018 Revenues from External Customers $ 2,173,291 $ 1,353,105 $ - $ 3,526,396 Cost of Revenues 217,222 723,636 - 940,858 Gross Profit 1,956,069 629,469 - 2,585,538 Research & Development 503,518 136,959 - 640,477 Selling, General & Administrative 850,521 614,718 560,391 2,025,630 Total Operating Expenses 1,354,039 751,677 560,391 2,666,107 Operating Income (Loss) 602,030 (122,208 ) (560,391 ) (80,569 ) Other Income (Expense) Other Income 81,918 2,097 - 84,015 Interest Expense (2,385 ) (14,752 ) (63,604 ) (80,741 ) Total other income (expense) 79,533 (12,655 ) (63,604 ) 3,274 Income (Loss) before income taxes 681,563 (134,863 ) (623,995 ) (77,295 ) Income tax benefit (expense) (6,431 ) - 6,401 (30 ) Net Income (Loss) $ 675,132 $ (134,863 ) $ (617,594 ) $ (77,325 ) Supplemental Disclosures Total Assets $ 12,655,196 $ 10,944,045 $ 342,932 $ 23,942,173 Total Liabilities 763,339 1,435,771 1,938,490 4,137,600 Revenues from Intercompany Sales - eliminated from sales above 315,954 132,837 675,000 1,123,791 Depreciation and Amortization 113,923 72,499 4,255 190,677 Purchases of Long-lived Assets 52,112 6,056 24,785 82,953 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2017 Revenues from External Customers $ 3,299,545 $ 1,979,213 $ - $ 5,278,758 Cost of Revenues 968,908 1,045,032 - 2,013,940 Gross Profit 2,330,637 934,181 - 3,264,818 Research & Development 247,758 - - 247,758 Selling, General & Administrative 830,121 655,560 154,211 1,639,892 Total Operating Expenses 1,077,879 655,560 154,211 1,887,650 Operating Income (Loss) 1,252,758 278,621 (154,211 ) 1,377,168 Other Income (Expense) Other Income 86,643 - - 86,643 Interest Expense (181,806 ) (75,001 ) 67,960 (188,847 ) Total other income (expense) (95,163 ) (75,001 ) 67,960 (102,204 ) Income (Loss) before income taxes 1,157,595 203,620 (86,251 ) 1,274,964 Income tax benefit (expense) - - - - Net Income (Loss) $ 1,157,595 $ 203,620 $ (86,251 ) $ 1,274,964 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 505,660 170,056 118,875 794,591 Depreciation and Amortization 145,800 71,056 3,106 219,962 Purchases of Long-lived Assets 643,603 26,852 - 670,455 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2018 Revenues from External Customers $ 4,216,233 $ 2,360,720 $ - $ 6,576,953 Cost of Revenues 647,353 1,239,612 - 1,886,965 Gross Profit 3,568,880 1,121,108 - 4,689,988 Research & Development 945,792 365,224 - 1,311,016 Selling, General & Administrative 1,428,086 1,245,592 857,709 3,531,387 Total Operating Expenses 2,373,878 1,610,816 857,709 4,842,403 Operating Income (Loss) 1,195,002 (489,708 ) (857,709 ) (152,415 ) Other Income (Expense) Other Income 88,573 2,097 - 90,670 Interest (Expense) Income (6,804 ) (29,701 ) (146,984 ) (183,489 ) Total other income (expense) 81,769 (27,604 ) (146,984 ) (92,819 ) Income (Loss) before income taxes 1,276,771 (517,312 ) (1,004,693 ) (245,234 ) Income tax benefit (expense) (6,596 ) - 6,566 (30 ) Net Income (Loss) $ 1,270,175 $ (517,312 ) $ (998,127 ) $ (245,264 ) Supplemental Disclosures Total Assets $ 12,455,194 $ 10,944,045 $ 342,932 $ 23,942,173 Total Liabilities 760,320 1,438,790 1,938,490 4,137,600 Revenues from Intercompany Sales - eliminated from sales above 471,218 10,189 675,000 1,156,407 Depreciation and Amortization 236,650 152,214 7,192 396,056 Purchases of Long-lived Assets 254,029 49,961 24,785 328,775 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2017 Revenues from External Customers $ 5,750,144 $ 4,886,817 $ - $ 10,636,961 Cost of Revenues 1,698,926 2,298,059 - 3,996,985 Gross Profit 4,051,218 2,588,758 - 6,639,976 Research & Development 498,988 - - 498,988 Selling, General & Administrative 1,404,770 1,341,971 299,039 3,045,780 Total Operating Expenses 1,903,758 1,341,971 299,039 3,544,768 Operating Income (Loss) 2,147,460 1,246,787 (299,039 ) 3,095,208 Other Income (Expense) Other Income 136,059 - - 136,059 Interest Expense (532,141 ) (199,223 ) 347,023 (384,341 ) Total other income (expense) (396,082 ) (199,223 ) 347,023 (248,282 ) Income before income taxes 1,751,378 1,047,564 47,984 2,846,926 Income tax benefit (expense) - - - - Net Income $ 1,751,378 $ 1,047,564 $ 47,984 $ 2,846,926 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 678,513 229,955 237,750 1,146,218 Depreciation and Amortization 247,263 142,781 6,317 396,361 Purchases of Long-lived Assets 2,289,063 49,033 12,470 2,350,566 USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended April 30, 2018 $ 1,934,365 $ 1,476,668 $ 115,363 $ 3,526,396 Three Months Ended April 30, 2017 $ 2,525,908 $ 2,614,897 $ 137,953 $ 5,278,758 Six Months Ended April 30, 2018 $ 3,021,991 $ 3,298,704 $ 256,258 $ 6,576,953 Six Months Ended April 30, 2017 $ 5,275,675 $ 4,631,934 $ 729,352 $ 10,636,961

Income Taxes

Income Taxes	6 Months Ended
	Apr. 30, 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 a full valuation allowance against the deferred tax asset. This tax law change will not impact these financial statements. However, should our deferred tax asset reverse we will not recognize benefits in the amount previously expected.

Subsequent Events

Subsequent Events	6 Months Ended
	Apr. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 15 – SUBSEQUENT EVENTS None

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Apr. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	Inventory is stated at the lower of cost (weighted average method) or net realized value. Inventory consisted of the following components: April 30, 2018 October 31, 2017 Raw materials and parts $ 3,305,349 $ 2,651,511 Work in progress 147,338 501,692 Demo goods - 349,480 Finished goods 547,476 149,566 Total Inventory $ 4,000,163 $ 3,652,249

Other Current Assets (Tables)

Other Current Assets (Tables)	6 Months Ended
	Apr. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Current Assets	Other current assets consisted of the following components: April 30, 2018 October 31, 2017 Deposits $ 4,860 $ 11,255 Other receivables 44,638 73,600 Value added tax (VAT) receivable 58,229 235,959 Total Other Current Assets $ 107,728 $ 320,814

Loans and Notes Payable (Tables

Loans and Notes Payable (Tables)	6 Months Ended
	Apr. 30, 2018
Debt Disclosure [Abstract]
Schedule of Loans and Notes Payable	April 30, 2018 October 31, 2017 Secured note payable to HSBC NA with interest payable on the 28 th $ 1,755,591 $ 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 2,755,591 8,279,353 Less: current portion (1,453,686 ) (2,212,951 ) Total Long-Term Loans and Notes Payable $ 1,301,905 $ 6,066,402

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Apr. 30, 2018
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	April 30, 2018 October 31, 2017 Balance, beginning of year $ (2,038,431 ) $ (2,337,437 ) Total other comprehensive income (loss) for the year - foreign currency translation adjustment 574,936 299,006 Balance, end of period $ (1,463,495 ) $ (2,038,431 )

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Apr. 30, 2018
NET (LOSS) INCOME PER SHARE:
Schedule of Earnings Per Share Basic and Diluted	Fiscal Period Three Months Ended April 30, 2018 Three Months Ended April 30, 2017 Six Months Ended April 30, 2018 Six Months Ended April 30, 2017 Numerator: Net (Loss) Income $ (77,325 ) $ 1,274,964 $ (245,264 ) $ 2,846,926 Denominator: Basic weighted average common shares outstanding 10,353,876 9,102,192 9,754,033 9,101,837 Conversion of Series C Preferred Stock 0 200,000 0 200,000 Diluted outstanding shares 10,353,876 9,302,192 9,754,033 9,301,837 Earnings from continuing operations Basic $ (0.01 ) $ 0.14 $ (0.03 ) $ 0.31 Diluted $ (0.01 ) $ 0.14 $ (0.03 ) $ 0.31

Segment Analysis (Tables)

Segment Analysis (Tables)	6 Months Ended
	Apr. 30, 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 April 30, 2018 and 2017 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2018 Revenues from External Customers $ 2,173,291 $ 1,353,105 $ - $ 3,526,396 Cost of Revenues 217,222 723,636 - 940,858 Gross Profit 1,956,069 629,469 - 2,585,538 Research & Development 503,518 136,959 - 640,477 Selling, General & Administrative 850,521 614,718 560,391 2,025,630 Total Operating Expenses 1,354,039 751,677 560,391 2,666,107 Operating Income (Loss) 602,030 (122,208 ) (560,391 ) (80,569 ) Other Income (Expense) Other Income 81,918 2,097 - 84,015 Interest Expense (2,385 ) (14,752 ) (63,604 ) (80,741 ) Total other income (expense) 79,533 (12,655 ) (63,604 ) 3,274 Income (Loss) before income taxes 681,563 (134,863 ) (623,995 ) (77,295 ) Income tax benefit (expense) (6,431 ) - 6,401 (30 ) Net Income (Loss) $ 675,132 $ (134,863 ) $ (617,594 ) $ (77,325 ) Supplemental Disclosures Total Assets $ 12,655,196 $ 10,944,045 $ 342,932 $ 23,942,173 Total Liabilities 763,339 1,435,771 1,938,490 4,137,600 Revenues from Intercompany Sales - eliminated from sales above 315,954 132,837 675,000 1,123,791 Depreciation and Amortization 113,923 72,499 4,255 190,677 Purchases of Long-lived Assets 52,112 6,056 24,785 82,953 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2017 Revenues from External Customers $ 3,299,545 $ 1,979,213 $ - $ 5,278,758 Cost of Revenues 968,908 1,045,032 - 2,013,940 Gross Profit 2,330,637 934,181 - 3,264,818 Research & Development 247,758 - - 247,758 Selling, General & Administrative 830,121 655,560 154,211 1,639,892 Total Operating Expenses 1,077,879 655,560 154,211 1,887,650 Operating Income (Loss) 1,252,758 278,621 (154,211 ) 1,377,168 Other Income (Expense) Other Income 86,643 - - 86,643 Interest Expense (181,806 ) (75,001 ) 67,960 (188,847 ) Total other income (expense) (95,163 ) (75,001 ) 67,960 (102,204 ) Income (Loss) before income taxes 1,157,595 203,620 (86,251 ) 1,274,964 Income tax benefit (expense) - - - - Net Income (Loss) $ 1,157,595 $ 203,620 $ (86,251 ) $ 1,274,964 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 505,660 170,056 118,875 794,591 Depreciation and Amortization 145,800 71,056 3,106 219,962 Purchases of Long-lived Assets 643,603 26,852 - 670,455 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2018 Revenues from External Customers $ 4,216,233 $ 2,360,720 $ - $ 6,576,953 Cost of Revenues 647,353 1,239,612 - 1,886,965 Gross Profit 3,568,880 1,121,108 - 4,689,988 Research & Development 945,792 365,224 - 1,311,016 Selling, General & Administrative 1,428,086 1,245,592 857,709 3,531,387 Total Operating Expenses 2,373,878 1,610,816 857,709 4,842,403 Operating Income (Loss) 1,195,002 (489,708 ) (857,709 ) (152,415 ) Other Income (Expense) Other Income 88,573 2,097 - 90,670 Interest (Expense) Income (6,804 ) (29,701 ) (146,984 ) (183,489 ) Total other income (expense) 81,769 (27,604 ) (146,984 ) (92,819 ) Income (Loss) before income taxes 1,276,771 (517,312 ) (1,004,693 ) (245,234 ) Income tax benefit (expense) (6,596 ) - 6,566 (30 ) Net Income (Loss) $ 1,270,175 $ (517,312 ) $ (998,127 ) $ (245,264 ) Supplemental Disclosures Total Assets $ 12,455,194 $ 10,944,045 $ 342,932 $ 23,942,173 Total Liabilities 760,320 1,438,790 1,938,490 4,137,600 Revenues from Intercompany Sales - eliminated from sales above 471,218 10,189 675,000 1,156,407 Depreciation and Amortization 236,650 152,214 7,192 396,056 Purchases of Long-lived Assets 254,029 49,961 24,785 328,775 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2017 Revenues from External Customers $ 5,750,144 $ 4,886,817 $ - $ 10,636,961 Cost of Revenues 1,698,926 2,298,059 - 3,996,985 Gross Profit 4,051,218 2,588,758 - 6,639,976 Research & Development 498,988 - - 498,988 Selling, General & Administrative 1,404,770 1,341,971 299,039 3,045,780 Total Operating Expenses 1,903,758 1,341,971 299,039 3,544,768 Operating Income (Loss) 2,147,460 1,246,787 (299,039 ) 3,095,208 Other Income (Expense) Other Income 136,059 - - 136,059 Interest Expense (532,141 ) (199,223 ) 347,023 (384,341 ) Total other income (expense) (396,082 ) (199,223 ) 347,023 (248,282 ) Income before income taxes 1,751,378 1,047,564 47,984 2,846,926 Income tax benefit (expense) - - - - Net Income $ 1,751,378 $ 1,047,564 $ 47,984 $ 2,846,926 Supplemental Disclosures Total Assets $ 12,119,417 $ 12,616,569 $ 422,059 $ 25,158,045 Total Liabilities 1,223,741 1,654,104 8,600,374 11,478,219 Revenues from Intercompany Sales - eliminated from sales above 678,513 229,955 237,750 1,146,218 Depreciation and Amortization 247,263 142,781 6,317 396,361 Purchases of Long-lived Assets 2,289,063 49,033 12,470 2,350,566 USA Europe Australia Total External Revenues by Geographic Locations Three Months Ended April 30, 2018 $ 1,934,365 $ 1,476,668 $ 115,363 $ 3,526,396 Three Months Ended April 30, 2017 $ 2,525,908 $ 2,614,897 $ 137,953 $ 5,278,758 Six Months Ended April 30, 2018 $ 3,021,991 $ 3,298,704 $ 256,258 $ 6,576,953 Six Months Ended April 30, 2017 $ 5,275,675 $ 4,631,934 $ 729,352 $ 10,636,961

Inventory - Schedule of Compone

Inventory - Schedule of Components of Inventory (Details) - USD ($)	Apr. 30, 2018	Oct. 31, 2017
Inventory Disclosure [Abstract]
Raw materials and parts	$ 3,305,349	$ 2,651,511
Work in progress	147,338	501,692
Demo goods		349,480
Finished goods	547,476	149,566
Total Inventory	$ 4,000,163	$ 3,652,249

Other Current Assets - Summary

Other Current Assets - Summary of Other Current Assets (Details) - USD ($)	Apr. 30, 2018	Oct. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits	$ 4,860	$ 11,255
Other receivables	44,638	73,600
Value added tax (VAT) receivable	58,229	235,959
Total Other Current Assets	$ 107,728	$ 320,814

Contracts in Progress (Details

Contracts in Progress (Details Narrative) - USD ($)	6 Months Ended
	Apr. 30, 2018	Oct. 31, 2017
Contracts In Progress
Unbilled receivables	$ 1,585,907	$ 2,723,172
Deferred revenues	293,795	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	$ 61,494	$ 76,574

Concentrations (Details Narrati

Concentrations (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Oct. 31, 2017
Accounts receivable from customer	$ 2,120,010		$ 2,120,010		$ 1,418,114
Two Customers [Member]
Percentage of sales from customers	10.00%		10.00%
Two Customers [Member] | Revenue [Member]
Percentage of sales from customers	38.00%		25.00%
Revenue from customer	$ 1,325,531		$ 1,612,490
Two Customers [Member] | Accounts Receivable [Member]
Percentage of sales from customers	47.00%		47.00%
Accounts receivable from customer	$ 998,606		$ 998,606
Customer [Member]
Percentage of sales from customers		10.00%		10.00%
Customer [Member] | Revenue [Member]
Percentage of sales from customers		19.00%		27.00%
Revenue from customer		$ 1,016,784		$ 2,853,925
Customer [Member] | Accounts Receivable [Member]
Percentage of sales from customers		7.00%		7.00%
Accounts receivable from customer		$ 189,110		$ 189,110

Loans and Notes Payable - (Deta

Loans and Notes Payable - (Details Narrative)	Apr. 30, 2018USD ($)
Outstanding line of credit	$ 0
HSBC - SYSTEMATIC INTERNALISER [Member]
Outstanding line of credit	$ 455,000

Loans and Notes Payable - Sched

Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) - USD ($)	Apr. 30, 2018	Oct. 31, 2017
Total	$ 2,755,591	$ 8,279,353
Less: current portion	(1,453,686)	(2,212,951)
Total Long-Term Loans and Notes Payable	1,301,905	6,066,402
Secured Debt One [Member]
Total	1,755,591	7,279,353
Secured Debt Two [Member]
Total	$ 1,000,000	$ 1,000,000

Loans and Notes Payable - Sch34

Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) (Parenthetical) - USD ($)	Mar. 28, 2018	Apr. 30, 2018	Oct. 31, 2017
Secured Debt One [Member]
Loan, annual interest rate		4.56%	4.56%
Reduced principal outstanding	$ 1,917,602
Monthly principal and interest payment	$ 43,777
Secured Debt Two [Member]
Secured debenture, maturity date		Nov. 30, 2018	Nov. 30, 2018
Debt, interest rate		4.50%	4.50%

Accumulated Other Comprehensi35

Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 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	$ (381,001)	$ 346,727	574,936	$ 767,887	299,006
Balance, end of period	$ (1,463,495)		$ (1,463,495)		$ (2,038,431)

Earnings Per Common Share (Deta

Earnings Per Common Share (Details Narrative)	3 Months Ended
	Apr. 30, 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		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
NET (LOSS) INCOME PER SHARE:
Net (loss) income	$ (77,325)	$ 1,274,964	$ (245,264)	$ 2,846,926
Basic weighted average common shares outstanding	10,353,876	9,102,192	9,754,033	9,101,837
Conversion of Series C Preferred Stock	0	200,000	0	200,000
Diluted outstanding shares	10,353,876	9,302,192	9,754,033	9,301,837
Earnings from continuing operations, Basic	$ (0.01)	$ 0.14	$ (0.03)	$ 0.31
Earnings from continuing operations, Diluted	$ (0.01)	$ 0.14	$ (0.03)	$ 0.31

Segment Analysis (Details Narra

Segment Analysis (Details Narrative)	6 Months Ended
	Apr. 30, 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		6 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Oct. 31, 2017
Revenues from External Customers	$ 3,526,396	$ 5,278,758	$ 6,576,953	$ 10,636,961
Cost of Revenues	940,858	2,013,940	1,886,965	3,996,985
Gross Profit	2,585,538	3,264,818	4,689,988	6,639,976
Research & Development	640,477	247,758	1,311,016	498,988
Selling, General & Administrative	2,025,630	1,639,892	3,531,387	3,045,780
Total Operating Expenses	2,666,107	1,887,650	4,842,403	3,544,768
Operating Income (Loss)	(80,569)	1,377,168	(152,415)	3,095,208
Other Income	84,015	86,643	90,670	136,059
Interest (Expense) Income	(80,741)	(188,847)	(183,489)	(384,341)
Total other income (expense)	3,274	(102,204)	(92,819)	(248,282)
Income (Loss) before income taxes	(77,295)	1,274,964	(245,234)	2,846,926
Income tax benefit (expense)	(30)		(30)
Net (loss) income	(77,325)	1,274,964	(245,264)	2,846,926
Total Assets	23,942,173	25,158,045	23,942,173	25,158,045	$ 24,060,073
Total Liabilities	4,137,600	11,478,219	4,137,600	11,478,219	$ 10,232,653
Revenues from Intercompany Sales - eliminated from sales above	1,123,791	794,591	1,156,407	1,146,218
Depreciation and Amortization	190,677	219,962	396,056	396,361
Purchases of Long-lived Assets	82,953	670,455	521,594	2,350,566
USA [Member]
Revenues from External Customers	1,934,365	2,525,908	3,021,991	5,275,675
Europe [Member]
Revenues from External Customers	1,476,668	2,614,897	3,298,704	4,631,934
Australia [Member]
Revenues from External Customers	115,363	137,953	256,258	729,352
Marine Technology Business (Products) [Member]
Revenues from External Customers	2,173,291	3,299,545	4,216,233	5,750,144
Cost of Revenues	217,222	968,908	647,353	1,698,926
Gross Profit	1,956,069	2,330,637	3,568,880	4,051,218
Research & Development	503,518	247,758	945,792	498,988
Selling, General & Administrative	850,521	830,121	1,428,086	1,404,770
Total Operating Expenses	1,354,039	1,077,879	2,373,878	1,903,758
Operating Income (Loss)	602,030	1,252,758	1,195,002	2,147,460
Other Income	81,918	86,643	88,573	136,059
Interest (Expense) Income	(2,385)	(181,806)	(6,804)	(532,141)
Total other income (expense)	79,533	(95,163)	81,769	(396,082)
Income (Loss) before income taxes	681,563	1,157,595	1,276,771	1,751,378
Income tax benefit (expense)	(6,431)		(6,596)
Net (loss) income	675,132	1,157,595	1,270,175	1,751,378
Total Assets	12,455,194	12,119,417	12,455,194	12,119,417
Total Liabilities	763,339	1,223,741	763,339	1,223,741
Revenues from Intercompany Sales - eliminated from sales above	315,954	505,660	471,218	678,513
Depreciation and Amortization	113,923	145,800	236,650	247,263
Purchases of Long-lived Assets	52,112	643,603	254,029	2,289,063
Marine Engineering Business (Services) [Member]
Revenues from External Customers	1,353,105	1,979,213	2,360,720	4,886,817
Cost of Revenues	723,636	1,045,032	1,239,612	2,298,059
Gross Profit	629,469	934,181	1,121,108	2,588,758
Research & Development	136,959		365,224
Selling, General & Administrative	614,718	655,560	1,245,592	1,341,971
Total Operating Expenses	751,677	655,560	1,610,816	1,341,971
Operating Income (Loss)	(122,208)	278,621	(489,708)	1,246,787
Other Income	2,097		2,097
Interest (Expense) Income	(14,752)	(75,001)	(29,701)	(199,223)
Total other income (expense)	(12,655)	(75,001)	(27,604)	(199,223)
Income (Loss) before income taxes	(134,863)	203,620	(517,312)	1,047,564
Income tax benefit (expense)
Net (loss) income	(134,863)	203,620	(517,312)	1,047,564
Total Assets	10,944,045	12,616,569	10,944,045	12,616,569
Total Liabilities	1,435,771	1,654,104	1,435,771	1,654,104
Revenues from Intercompany Sales - eliminated from sales above	132,837	170,056	10,189	229,955
Depreciation and Amortization	72,499	71,056	152,214	142,781
Purchases of Long-lived Assets	6,056	26,852	49,961	49,033
Overhead [Member]
Revenues from External Customers
Cost of Revenues
Gross Profit
Research & Development
Selling, General & Administrative	560,391	154,211	857,709	299,039
Total Operating Expenses	560,391	154,211	857,709	299,039
Operating Income (Loss)	(560,391)	(154,211)	(857,709)	(299,039)
Other Income
Interest (Expense) Income	(63,604)	67,960	(146,984)	347,023
Total other income (expense)	(63,604)	67,960	(146,984)	347,023
Income (Loss) before income taxes	(623,995)	(86,251)	(1,004,693)	47,984
Income tax benefit (expense)	6,401		6,566
Net (loss) income	(617,594)	(86,251)	(998,127)	47,984
Total Assets	342,932	422,059	342,932	422,059
Total Liabilities	1,938,490	8,600,374	1,938,490	8,600,374
Revenues from Intercompany Sales - eliminated from sales above	675,000	118,875	675,000	237,750
Depreciation and Amortization	4,255	3,106	7,192	6,317
Purchases of Long-lived Assets	$ 24,785		$ 24,785	$ 12,470

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Dec. 22, 2017	Oct. 31, 2017
Income Tax Disclosure [Abstract]
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