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 |