Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2019 | Mar. 18, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Coda Octopus Group, Inc. | |
Entity Central Index Key | 0001334325 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 10,671,524 | |
Trading Symbol | CODA | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 8,801,189 | $ 7,512,422 |
Accounts Receivables, Net | 4,407,277 | 3,326,623 |
Inventory | 3,758,309 | 3,823,243 |
Unbilled Receivables | 1,902,587 | 3,013,116 |
Other Current Assets | 546,784 | 219,424 |
Prepaid Expenses | 491,670 | 227,479 |
Total Current Assets | 19,907,816 | 18,122,307 |
FIXED ASSETS | ||
Property and Equipment, net | 5,980,091 | 5,246,183 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,604,461 | 3,613,952 |
Deferred tax assets | 1,564,964 | 1,754,169 |
Total other assets | 5,169,425 | 5,368,121 |
Total Assets | 31,057,332 | 28,736,611 |
CURRENT LIABILITIES | ||
Accounts Payable | 1,639,788 | 988,148 |
Accrued Expenses and Other Current Liabilities | 744,940 | 685,454 |
Loans and Note Payable, current | 470,128 | 964,695 |
Deferred Revenues, current | 1,076,296 | 602,914 |
Total Current Liabilities | 3,931,152 | 3,241,211 |
LONG-TERM LIABILITIES | ||
Deferred revenue, long term | 156,829 | 48,906 |
Loans and Note Payable, long term | 940,088 | 1,059,544 |
Total Long Term Liabilities | 1,096,917 | 1,108,450 |
Total Liabilities | 5,028,069 | 4,349,661 |
STOCKHOLDERS' EQUITY | ||
Common stock, $.001 par value; 150,000,000 shares authorized, 10,664,381 and 10,640,416 shares issued and outstanding as of January 31, 2019 and October 31, 2018, respectively | 10,664 | 10,641 |
Additional paid-in capital | 58,704,800 | 58,599,378 |
Accumulated other comprehensive loss | (1,930,808) | (2,228,663) |
Accumulated deficit | (30,755,393) | (31,994,406) |
Total Stockholders' Equity | 26,029,263 | 24,386,950 |
Total Liabilities and Stockholders' Equity | $ 31,057,332 | $ 28,736,611 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 10,664,381 | 10,640,416 |
Common stock, shares outstanding | 10,664,381 | 10,640,416 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Income Statement [Abstract] | ||
Net Revenues | $ 5,758,508 | $ 3,050,557 |
Cost of Revenues | 2,225,436 | 946,107 |
Gross Profit | 3,533,072 | 2,104,450 |
OPERATING EXPENSES | ||
Research & Development | 571,326 | 670,539 |
Selling, General & Administrative | 1,619,275 | 1,505,757 |
Total Operating Expenses | 2,190,601 | 2,176,296 |
INCOME (LOSS) FROM OPERATIONS | 1,342,471 | (71,846) |
OTHER INCOME (EXPENSE) | ||
Other Income | 32,841 | 6,655 |
Interest Expense | (25,061) | (102,748) |
Total Other Income (Expense) | 7,780 | (96,093) |
NET INCOME (LOSS) BEFORE INCOME TAXES | 1,350,251 | (167,939) |
INCOME TAX BENEFIT (EXPENSE) | ||
Current tax benefit | 77,967 | |
Deferred tax expense | (189,205) | |
Total Income Tax Expense | (111,238) | |
NET INCOME (LOSS) | $ 1,239,013 | $ (167,939) |
NET INCOME (LOSS) PER SHARE: | ||
Basic | $ 0.12 | $ (0.02) |
Diluted | $ 0.12 | $ (0.02) |
WEIGHTED AVERAGE SHARES: | ||
Basic | 10,660,694 | 9,172,837 |
Diluted | 10,660,694 | 9,172,837 |
NET INCOME (LOSS) | $ 1,239,013 | $ (167,939) |
Other Comprehensive Income: | ||
Foreign currency translation adjustment | 297,855 | 955,937 |
Total Other Comprehensive Income | 297,855 | 955,937 |
COMPREHENSIVE INCOME | $ 1,536,868 | $ 787,998 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Jan. 31, 2019 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Balance at Oct. 31, 2018 | $ 10,641 | $ 58,599,378 | $ (2,228,663) | $ (31,994,406) | $ 24,386,950 |
Balance, shares at Oct. 31, 2018 | 10,640,416 | ||||
Stock Issued to Investors | $ 23 | 105,422 | 105,445 | ||
Stock Issued to Investors, shares | 23,965 | ||||
Foreign currency translation adjustment | 297,855 | 297,855 | |||
Net Income | 1,239,013 | 1,239,013 | |||
Balance at Jan. 31, 2019 | $ 10,664 | $ 58,704,800 | $ (1,930,808) | $ (30,755,393) | $ 26,029,263 |
Balance, shares at Jan. 31, 2019 | 10,664,381 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income (Loss) | $ 1,239,013 | $ (167,939) |
Adjustments to reconcile net income (loss) to net cash provided by/(used in) by operating activities: | ||
Depreciation and amortization | 194,718 | 220,170 |
(Increase) decrease in operating assets: | ||
Accounts receivable | (1,080,654) | (529,859) |
Inventory | 64,934 | (513,045) |
Unbilled receivables | 1,110,529 | 1,129,108 |
Other current assets | (327,360) | 294,081 |
Prepaid expenses | (264,191) | (12,778) |
Deferred tax assets | 189,205 | |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | 711,126 | (528,284) |
Deferred revenues | 581,305 | (51,791) |
Net Cash provided by (used in) Operating Activities | 2,418,625 | (160,337) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (919,135) | (245,822) |
Net Cash used in Investing Activities | (919,135) | (245,822) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayments - loans and notes payable | (614,023) | (366,516) |
Issuance of stock for cash | 105,445 | 4,954,180 |
Net Cash (used in) provided by Financing Activities | (508,578) | 4,587,664 |
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH | 297,855 | 955,937 |
NET INCREASE IN CASH | 1,288,767 | 5,137,442 |
CASH AT THE BEGINNING OF THE PERIOD | 7,512,422 | 6,851,539 |
CASH AT THE END OF THE PERIOD | 8,801,189 | 11,988,981 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 25,061 | 91,248 |
Cash paid for taxes | $ 7,840 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jan. 31, 2019 | |
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, 2018 and 2017 which included all information and notes necessary for such complete presentation in conjunction with its annual report on Form 10-K filed on February 1, 2019 (as amended on February 7, 2019, the “Form 10-K”). The results of operations for the interim period ended January 31, 2019 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended October 31, 2018, which are contained in the Company’s report on 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 January 31, 2019 and the results of operations, comprehensive income and cash flows for the interim periods ended January 31, 2019 and 2018. 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 the 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 Danish based operations are measured using Danish 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jan. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 2 – REVENUE RECOGNITION Beginning on November 1, 2018, the Company adopted the Financial Accounting Standards Board’s Topic 606, Revenue from Contracts with Customers Revenue Recognition. Topic 606 has established a five-step process to determine the amount of revenue to record from contracts with customers. The five steps are: ● Determine if we have a contract with a customer; ● Determine the performance obligations in that contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations; and ● Determine when to recognize revenue. All of our revenues are earned under formal contracts with our customers and is derived from both sales and rental of underwater technologies and equipment for imaging, mapping, defense and survey applications and from the engineering services that we provide. Our contracts do not include the possibility for additional contingent consideration so that our determination of the contract price does not involve having to consider potential variable additional consideration. Our product sales do not include a right of return by the customer. With regard to our Products Segment, all of our products are sold on a stand-alone basis and those market prices are evidence of the value of the products. To the extent that we also provide services (e.g., installation, training, etc.), those services are either included as part of the product or are subject to written contracts based on the stand-alone value of those services. Revenue from the sale of services is recognized when those services have been provided to the customer and evidence of the provision of those services exist. Revenue derived from rental of our equipment is recognized when performance obligations are met, in particular, on a daily basis during the rental period. For arrangements with multiple performance obligations, we recognize product revenue by allocating the revenue to each performance obligation based on the relative fair value of each deliverable and recognize revenue when performance obligations are met including when equipment is delivered, and for rental of equipment, when installation and other services are performed. Our contracts sometimes require customer payments in advance of revenue recognition. These amounts are reflected as deferred revenue and recognized as revenue when the Company has fulfilled its obligations under the respective contracts. For software license sales for which any services rendered are not considered essential to the functionality of the software, we recognize revenue upon delivery of the software. With respect to revenues related to our Services Segment that are generated, there are contracts in place that specify the fixed hourly rate and other reimbursable costs to be billed based on material and direct labor hours incurred, revenue is recognized on these contracts based on material and direct labor hours incurred. Revenues from fixed-price contracts are recognized on the percentage-of-completion method, measured by the percentage of costs incurred (materials and direct labor hours) to date to estimated total services (materials and direct labor hours) for each contract. This method is used as we consider expenditures for direct materials and labor hours to be the best available measure of progress on these contracts. Quarterly, we examine all of our fixed-price contracts to determine if there are any losses to be recognized during the period. Any such loss is recorded in the quarter in which the loss first becomes apparent based upon costs incurred to date and the estimated costs to complete as determined by experience from similar contracts. Variations from estimated contract performance could result in adjustments to operating results. Recoverability of Deferred Costs In accordance with Topic 606, we defer costs on projects for service revenue. Deferred costs consist primarily of direct and incremental costs to customize and install systems, as defined in individual customer contracts, including costs to acquire hardware and software from third parties and payroll costs for our employees and other third parties. The pricing of these service contracts is intended to provide for the recovery of these types of deferred costs over the life of the contract. We recognize such costs in accordance with our revenue recognition policy by contract. For revenue recognized under the percentage of completion method, costs are recognized as products are delivered or services are provided in accordance with the percentage of completion calculation. For revenue recognized ratably over the term of the contract, costs are recognized ratably over the term of the contract, commencing on the date of revenue recognition. At each balance sheet date, we review deferred costs, to ensure they are ultimately recoverable. Any anticipated losses on uncompleted contracts are recognized when evidence indicates the estimated total cost of a contract exceeds its estimated total revenue. Other Revenue Disclosures See note 14 – Segment Analysis for a breakdown of revenues from external customers and cost of those revenues between products and services. In addition, see the latter part of that footnote where revenues by geography are also disclosed. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s short term financial instruments consist of cash and cash equivalents, receivables, accounts payable and the current portions loans and notes payable. The Company adjusts the carrying value of financial assets and liabilities denominated in other currencies such as cash, receivables, accounts payable and the lines of credit using the appropriate exchange rates at the balance sheet date. The Company believes that the carrying values of these short term financial instruments approximate their estimated fair values. |
Foreign Currency Translation
Foreign Currency Translation | 3 Months Ended |
Jan. 31, 2019 | |
Foreign Currency [Abstract] | |
Foreign Currency Translation | NOTE 4 – 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 | 3 Months Ended |
Jan. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 5 – INVENTORY Inventory is stated at the lower of cost (weighted average method) or market value. Inventory consisted of the following components: January 31, 2019 October 31, 2018 Raw materials and parts $ 2,986,956 $ 2,887,505 Work in progress 470,773 472,204 Finished goods 300,580 463,534 Total Inventory $ 3,758,309 $ 3,823,243 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Jan. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | NOTE 6 – OTHER CURRENT ASSETS Other current assets consisted of the following components: January 31, 2019 October 31, 2018 Deposits $ 114,360 $ 21,007 Other receivables 136,901 141,294 Value added tax (VAT) receivable 295,523 57,123 Total Other Current Assets $ 546,784 $ 219,424 |
Estimates
Estimates | 3 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Estimates | NOTE 7 – ESTIMATES The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues including unbilled and deferred revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include costs and earnings in excess of billings, billings in excess of costs and estimated earnings, 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 | 3 Months Ended |
Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contracts in Progress | NOTE 8 – 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 $1,902,587 and $3,013,116 as of January 31, 2019 and October 31, 2018, respectively. Our Deferred Revenue of $1,233,125 and $651,820 as of January 31, 2019 and October 31, 2018, respectively, consists of billings in excess of costs and revenues received as part of our post-sales warranty and after-sales technical support (“TEAM” or “Through Life Support”) 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 $424,533 and $0 as of January 31, 2019 and October 31, 2018, respectively. Revenue received as part of sales of equipment via our Products Segment includes a provision for warranty and after-sales technical support (“TEAM” or “Through Life Support”) is treated as deferred revenue. These amounts are amortized as follows: Warranty Obligations 12 months from the date of sale; After Sales Technical Support (TEAM) 12 months from the date of sale or 12 months from the date of the renewal purchase transaction; After Sales Through Life Support (TLS) 36 months or 60 months depending on the package purchased by the customer. |
Concentrations
Concentrations | 3 Months Ended |
Jan. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 9 - CONCENTRATIONS Significant Customers During the three months ended January 31, 2019, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers was $2,616,171, or 45% of net revenues during the period. Total accounts receivable from these customers at January 31, 2019 was $990,039 or 22% of accounts receivable. During the three months ended January 31, 2018, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenues from this customer was $364,661, or 12% of net revenues during the period. Total accounts receivable from this customer at January 31, 2018 was $227,420 or 12% of accounts receivable. |
Loans and Notes Payable
Loans and Notes Payable | 3 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Loans and Notes Payable | NOTE 10 – LOANS AND NOTES PAYABLE January 31, October 31, 2019 2018 Secured note payable to HSBC with interest payable on the 28th day of each month at 4.56% per annum. Our repayment obligation under this loan is a monthly amount of $43,777 (comprising both principal and interest repayment) $ 1,410,216 $ 1,524,239 One of the subsidiaries had an unsecured working capital loan from the CEO of the Group. The note was repaid in full in December 2018 and carried an interest rate of 4.5%. - 500,000 Total 1,410,216 2,024,239 Less: current portion (470,128 ) (964,695 ) Total Long-Term Loans and Notes Payable $ 940,088 $ 1,059,544 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 11– ACCUMULATED OTHER COMPREHENSIVE INCOME January 31, October 31, 2019 2018 Balance, beginning of year $ (2,228,663 ) $ (2,038,431 ) Total other comprehensive income (loss) for the period - foreign currency translation adjustment 297,855 (190,232 ) Balance, end of period $ (1,930,808 ) $ (2,228,663 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 12 – RECENT ACCOUNTING PRONOUNCEMENTS 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 balance sheet. 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 own substantially all of our facilities and believe that the effect of adopting this standard will be immaterial. With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our consolidated financial statements. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Jan. 31, 2019 | |
NET INCOME (LOSS) PER SHARE: | |
Earnings Per Common Share | NOTE 13 – EARNINGS PER COMMON SHARE Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2019 2018 Numerator: Net Income (Loss) $ 1,239,013 $ (167,939 ) Denominator: Basic weighted average common shares outstanding 10,660,694 9,172,837 Conversion of Series C Preferred Stock - - Diluted outstanding shares 10,660,694 9,172,837 Earnings from continuing operations Basic $ 0.12 $ (0.02 ) Diluted $ 0.12 $ (0.02 ) Common stock equivalents of 200,000 shares were excluded from the January 31, 2018, computation as their effect would be anti-dilutive. |
Segment Analysis
Segment Analysis | 3 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Analysis | NOTE 14 – SEGMENT ANALYSIS We are operating in two reportable segments, which are managed separately based upon fundamental differences in their operations. Coda Octopus Martech and Coda Octopus Colmek operate as engineering service providers to prime defense contractors (“Services Segment”) and the balance of our operations designs, manufactures and supplies (both selling and renting) equipment to the subsea sector (“Products Segment”). Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs. The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies. There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes. The following table summarizes segment asset and operating balances by reportable segment as of and for the three months ended January 31, 2019 and 2018 respectively. Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2019 Revenues from External Customers $ 2,829,536 $ 2,928,972 $ - $ 5,758,508 Cost of Revenues 717,306 1,508,130 - 2,225,436 Gross Profit 2,112,230 1,420,842 - 3,533,072 Research & Development 471,425 32,549 67,352 571,326 Selling, General & Administrative 754,660 594,046 270,569 1,619,275 Total Operating Expenses 1,226,085 626,595 337,921 2,190,601 Operating Income (Loss) 886,145 794,247 (337,921 ) 1,342,471 Other Income (Expense) Other Income 32,841 - - 32,841 Interest (Expense) (2,474 ) (4,581 ) (18,006 ) (25,061 ) Total Other Income (Expense) 30,367 (4,581 ) (18,006 ) 7,780 Net Income (Loss) before income taxes 916,512 789,666 (355,927 ) 1,350,251 Income tax benefit (expense) Current tax benefit (expense) 7,293 44,924 25,750 77,967 Deferred tax benefit (6,924 ) (115,867 ) (66,414 ) (189,205 ) Income tax benefit (expense) 369 (70,943 ) (40,664 ) (111,238 ) Net Income (Loss) $ 916,881 $ 718,723 $ (396,591 ) $ 1,239,013 Supplemental Disclosures Total Assets $ 16,709,072 $ 12,272,308 $ 2,075,952 $ 31,057,332 Total Liabilities 2,163,421 1,328,238 1,536,410 5,028,069 Revenues from Intercompany Sales - eliminated from sales above 546,863 55,206 675,000 1,277,069 Depreciation and Amortization 124,608 66,290 3,820 194,718 Purchases of Long-lived Assets 916,023 3,112 - 919,135 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2018 Revenues from External Customers $ 2,042,942 $ 1,007,615 $ - $ 3,050,557 Cost of Revenues 430,131 515,976 - 946,107 Gross Profit 1,612,811 491,639 - 2,104,450 Research & Development 442,274 228,265 - 670,539 Selling, General & Administrative 577,565 630,874 297,318 1,505,757 Total Operating Expenses 1,019,839 859,139 297,318 2,176,296 Operating Income (Loss) 592,972 (367,500 ) (297,318 ) (71,846 ) Other Income (Expense) Other Income 6,655 - - 6,655 Interest (Expense) (4,419 ) (14,949 ) (83,380 ) (102,748 ) Total other income (expense) 2,236 (14,949 ) (83,380 ) (96,093 ) Income (Loss) before income taxes 595,208 (382,449 ) (380,698 ) (167,939 ) Income tax benefit (expense) - - - - Net Income (Loss) $ 595,208 $ (382,449 ) $ (380,698 ) $ (167,939 ) Supplemental Disclosures Total Assets $ 12,419,192 $ 11,095,135 $ 5,449,334 $ 28,963,661 Total Liabilities 862,542 1,405,271 7,126,250 9,394,063 Revenues from Intercompany Sales - eliminated from sales above 471,218 10,189 675,000 1,156,407 Depreciation and Amortization 137,518 79,715 2,937 220,170 Purchases of Long-lived Assets 201,917 43,905 - 245,822 We disaggregate our revenue from contracts for sale of our products and services with customers by geographic location, customer type and contract type for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty in our revenue and cash flows are affected by economic factors. See details in the tables below. We omitted the disaggregation of total net sales for the three months ended January 31, 2018 as we are not able to produce such information by the time of this filing. For the Three Months Ended January 31, 2019 Marine Technology Business Marine Engineering Business Grand Disaggregation of Total Net Sales Total Total Total United States Equipment Sales $ 47,550 $ 3,009 $ 50,559 Equipment Rentals 53,483 - 53,483 Engineering Parts - 2,190,192 2,190,192 Services 83,527 316,152 399,679 Europe Equipment Sales 323,709 97,677 421,386 Equipment Rentals 160,389 - 160,389 Software Sales 89,575 - 89,575 Engineering Parts - 321,942 321,942 Services 140,552 - 140,552 Australia/Asia Equipment Sales 1,192,319 - 1,192,319 Equipment Rentals 257,918 - 257,918 Software Sales 143,589 - 143,589 Services 223,375 - 223,375 Middle East & Africa Equipment Sales 10,473 - 10,473 Equipment Rentals 36,130 - 36,130 Software Sales 20,987 - 20,987 Services 45,960 - 45,960 Total net sales $ 2,829,536 $ 2,928,972 $ 5,758,508 Marine Technology Business Marine Engineering Business Grand Total Net Sales by Geographic Area Total Total Total United States $ 184,560 $ 2,509,353 $ 2,693,913 Europe 714,225 419,619 1,133,844 Australia/Asia 1,817,201 - 1,817,201 Middle East & Africa 113,550 - 113,550 Total net sales $ 2,829,536 $ 2,928,972 $ 5,758,508 Marine Technology Business Marine Engineering Business Grand Total Net Sales by Product Line Total Total Total Equipment Sales $ 1,574,051 $ 100,686 $ 1,674,737 Equipment Rentals 507,920 - 507,920 Software Sales 254,151 - 254,151 Engineering Parts 352,862 2,512,134 2,864,996 Services 140,552 316,152 456,704 Total net sales $ 2,829,536 $ 2,928,972 $ 5,758,508 |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15 – INCOME TAXES The Company files federal income tax returns in the U.S. and state income tax returns in the applicable states on a consolidated basis. The Company’s subsidiaries also file in the appropriate foreign jurisdictions as applicable, most notably the United Kingdom. The Company is required to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company has no significant unrecognized tax benefit during the three months ended January 31, 2019 and 2018. There are no material tax positions included in the accompanying unaudited consolidated financial statements at January 31, 2019 and October 31, 2018 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. The Company uses an asset and liability approach to financial accounting and reporting for income taxes. The difference between the financial statement and tax bases of assets and liabilities is determined annually. Deferred income tax assets and liabilities are computed for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the periods in which they are expected to affect taxable income. Valuation allowances are established, if necessary, to reduce the deferred tax asset to the amount that will more likely than not be realized. Income tax expense is the current income tax payable or refundable for the period plus or minus the net change in the deferred tax assets and liabilities. We have US federal tax NOL carryforwards of $7,452,210 remaining, which will expire at various dates in the next 20 years. Such NOL carryforwards expire as follows: 2028 $ 1,806,182 2029 5,646,028 Total $ 7,452,210 We believe that it is more likely than not that the benefit from certain federal NOL carryforwards will be realized. The federal NOL carryforwards in the income tax returns filed included unrecognized tax benefits taken in prior years. The NOLs for which a deferred tax asset is recognized for financial statement purposes in accordance with ASC 740 are presented net of these unrecognized tax benefits. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. The deferred tax asset related to the U.S. tax carry-forward is $1,564,964 and $1,754,169 as January 31, 2019 and October 31, 2018 respectively. The 2018 Tax Act eliminated the Alternative Minimum Tax (AMT) and provided for a refund of the AMT previously paid over two years. For the three months ended January 31, 2019 the Company had an Alternative Minimum Tax refund of $77,967 and for the year ended October 31, 2018 had an Alternative Minimum Tax of $7,840. The Company’s income tax returns are subject to audit by taxing authorities for the years beginning November 1, 2015. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 - SUBSEQUENT EVENTS On or around March 5, 2019, we sold residential property located in Orlando (purchased by the Company in February 2016) to one of our executive officers for $725,000 in cash. The sale price was deemed fair market value based on a review of comparable sales and was approved by the Company’s board of directors. The proceeds of this sale will be used to purchase business property in Orlando (Offices and Manufacturing Plant) for our expansion activities. The Company has signed a contract for the purchase of new business property in Orlando (for a purchase price of $684,000 and it is expected that this transaction will close on or around March 31, 2019. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory is stated at the lower of cost (weighted average method) or market value. Inventory consisted of the following components: January 31, 2019 October 31, 2018 Raw materials and parts $ 2,986,956 $ 2,887,505 Work in progress 470,773 472,204 Finished goods 300,580 463,534 Total Inventory $ 3,758,309 $ 3,823,243 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Current Assets | Other current assets consisted of the following components: January 31, 2019 October 31, 2018 Deposits $ 114,360 $ 21,007 Other receivables 136,901 141,294 Value added tax (VAT) receivable 295,523 57,123 Total Other Current Assets $ 546,784 $ 219,424 |
Contract in Progress (Tables)
Contract in Progress (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Amounts Amortized of Unearned Revenues | These amounts are amortized as follows: Warranty Obligations 12 months from the date of sale; After Sales Technical Support (TEAM) 12 months from the date of sale or 12 months from the date of the renewal purchase transaction; After Sales Through Life Support (TLS) 36 months or 60 months depending on the package purchased by the customer. |
Loans and Notes Payable (Tables
Loans and Notes Payable (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Loans and Notes Payable | January 31, October 31, 2019 2018 Secured note payable to HSBC with interest payable on the 28th day of each month at 4.56% per annum. Our repayment obligation under this loan is a monthly amount of $43,777 (comprising both principal and interest repayment) $ 1,410,216 $ 1,524,239 One of the subsidiaries had an unsecured working capital loan from the CEO of the Group. The note was repaid in full in December 2018 and carried an interest rate of 4.5%. - 500,000 Total 1,410,216 2,024,239 Less: current portion (470,128 ) (964,695 ) Total Long-Term Loans and Notes Payable $ 940,088 $ 1,059,544 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | January 31, October 31, 2019 2018 Balance, beginning of year $ (2,228,663 ) $ (2,038,431 ) Total other comprehensive income (loss) for the period - foreign currency translation adjustment 297,855 (190,232 ) Balance, end of period $ (1,930,808 ) $ (2,228,663 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
NET INCOME (LOSS) PER SHARE: | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2019 2018 Numerator: Net Income (Loss) $ 1,239,013 $ (167,939 ) Denominator: Basic weighted average common shares outstanding 10,660,694 9,172,837 Conversion of Series C Preferred Stock - - Diluted outstanding shares 10,660,694 9,172,837 Earnings from continuing operations Basic $ 0.12 $ (0.02 ) Diluted $ 0.12 $ (0.02 ) |
Segment Analysis (Tables)
Segment Analysis (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table summarizes segment asset and operating balances by reportable segment as of and for the three months ended January 31, 2019 and 2018 respectively. Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2019 Revenues from External Customers $ 2,829,536 $ 2,928,972 $ - $ 5,758,508 Cost of Revenues 717,306 1,508,130 - 2,225,436 Gross Profit 2,112,230 1,420,842 - 3,533,072 Research & Development 471,425 32,549 67,352 571,326 Selling, General & Administrative 754,660 594,046 270,569 1,619,275 Total Operating Expenses 1,226,085 626,595 337,921 2,190,601 Operating Income (Loss) 886,145 794,247 (337,921 ) 1,342,471 Other Income (Expense) Other Income 32,841 - - 32,841 Interest (Expense) (2,474 ) (4,581 ) (18,006 ) (25,061 ) Total Other Income (Expense) 30,367 (4,581 ) (18,006 ) 7,780 Net Income (Loss) before income taxes 916,512 789,666 (355,927 ) 1,350,251 Income tax benefit (expense) Current tax benefit (expense) 7,293 44,924 25,750 77,967 Deferred tax benefit (6,924 ) (115,867 ) (66,414 ) (189,205 ) Income tax benefit (expense) 369 (70,943 ) (40,664 ) (111,238 ) Net Income (Loss) $ 916,881 $ 718,723 $ (396,591 ) $ 1,239,013 Supplemental Disclosures Total Assets $ 16,709,072 $ 12,272,308 $ 2,075,952 $ 31,057,332 Total Liabilities 2,163,421 1,328,238 1,536,410 5,028,069 Revenues from Intercompany Sales - eliminated from sales above 546,863 55,206 675,000 1,277,069 Depreciation and Amortization 124,608 66,290 3,820 194,718 Purchases of Long-lived Assets 916,023 3,112 - 919,135 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2018 Revenues from External Customers $ 2,042,942 $ 1,007,615 $ - $ 3,050,557 Cost of Revenues 430,131 515,976 - 946,107 Gross Profit 1,612,811 491,639 - 2,104,450 Research & Development 442,274 228,265 - 670,539 Selling, General & Administrative 577,565 630,874 297,318 1,505,757 Total Operating Expenses 1,019,839 859,139 297,318 2,176,296 Operating Income (Loss) 592,972 (367,500 ) (297,318 ) (71,846 ) Other Income (Expense) Other Income 6,655 - - 6,655 Interest (Expense) (4,419 ) (14,949 ) (83,380 ) (102,748 ) Total other income (expense) 2,236 (14,949 ) (83,380 ) (96,093 ) Income (Loss) before income taxes 595,208 (382,449 ) (380,698 ) (167,939 ) Income tax benefit (expense) - - - - Net Income (Loss) $ 595,208 $ (382,449 ) $ (380,698 ) $ (167,939 ) Supplemental Disclosures Total Assets $ 12,419,192 $ 11,095,135 $ 5,449,334 $ 28,963,661 Total Liabilities 862,542 1,405,271 7,126,250 9,394,063 Revenues from Intercompany Sales - eliminated from sales above 471,218 10,189 675,000 1,156,407 Depreciation and Amortization 137,518 79,715 2,937 220,170 Purchases of Long-lived Assets 201,917 43,905 - 245,822 |
Schedule of Disaggregate of Revenue from Contracts for Sale with Customers by Geographic Location | We disaggregate our revenue from contracts for sale of our products and services with customers by geographic location, customer type and contract type for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty in our revenue and cash flows are affected by economic factors. See details in the tables below. We omitted the disaggregation of total net sales for the three months ended January 31, 2018 as we are not able to produce such information by the time of this filing. For the Three Months Ended January 31, 2019 Marine Technology Business Marine Engineering Business Grand Disaggregation of Total Net Sales Total Total Total United States Equipment Sales $ 47,550 $ 3,009 $ 50,559 Equipment Rentals 53,483 - 53,483 Engineering Parts - 2,190,192 2,190,192 Services 83,527 316,152 399,679 Europe Equipment Sales 323,709 97,677 421,386 Equipment Rentals 160,389 - 160,389 Software Sales 89,575 - 89,575 Engineering Parts - 321,942 321,942 Services 140,552 - 140,552 Australia/Asia Equipment Sales 1,192,319 - 1,192,319 Equipment Rentals 257,918 - 257,918 Software Sales 143,589 - 143,589 Services 223,375 - 223,375 Middle East & Africa Equipment Sales 10,473 - 10,473 Equipment Rentals 36,130 - 36,130 Software Sales 20,987 - 20,987 Services 45,960 - 45,960 Total net sales $ 2,829,536 $ 2,928,972 $ 5,758,508 Marine Technology Business Marine Engineering Business Grand Total Net Sales by Geographic Area Total Total Total United States $ 184,560 $ 2,509,353 $ 2,693,913 Europe 714,225 419,619 1,133,844 Australia/Asia 1,817,201 - 1,817,201 Middle East & Africa 113,550 - 113,550 Total net sales $ 2,829,536 $ 2,928,972 $ 5,758,508 Marine Technology Business Marine Engineering Business Grand Total Net Sales by Product Line Total Total Total Equipment Sales $ 1,574,051 $ 100,686 $ 1,674,737 Equipment Rentals 507,920 - 507,920 Software Sales 254,151 - 254,151 Engineering Parts 352,862 2,512,134 2,864,996 Services 140,552 316,152 456,704 Total net sales $ 2,829,536 $ 2,928,972 $ 5,758,508 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of NOL Carryforwards | Such NOL carryforwards expire as follows: 2028 $ 1,806,182 2029 5,646,028 Total $ 7,452,210 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) | 3 Months Ended |
Jan. 31, 2019USD ($) | |
Revenue Recognition [Abstract] | |
Adjustment of net income | $ 30,471 |
Inventory - Components of Inven
Inventory - Components of Inventory (Details) - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials and parts | $ 2,986,956 | $ 2,887,505 |
Work in progress | 470,773 | 472,204 |
Finished goods | 300,580 | 463,534 |
Total Inventory | $ 3,758,309 | $ 3,823,243 |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 114,360 | $ 21,007 |
Other receivables | 136,901 | 141,294 |
Value added tax (VAT) receivable | 295,523 | 57,123 |
Total Other Current Assets | $ 546,784 | $ 219,424 |
Contracts in Progress (Details
Contracts in Progress (Details Narrative) - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 1,902,587 | $ 3,013,116 |
Deferred revenue | 1,233,125 | 651,820 |
Component of deferred revenue | $ 424,533 | $ 0 |
Contract in Progress - Summary
Contract in Progress - Summary of Amounts Amortized of Unearned Revenues (Details) | 3 Months Ended |
Jan. 31, 2019 | |
Warrant Obligations [Member] | |
Deferred revenue, amortized term | 12 months |
Deferred revenue, amortized description | 12 months from the date of sale |
After Sales Technical Support (TEAM) [Member] | |
Deferred revenue, amortized term | 12 months |
Deferred revenue, amortized description | 12 months from the date of sale or 12 months from the date of the renewal purchase transaction |
After Sales Through Life Support (TLS) [Member] | |
Deferred revenue, amortized description | 36 months or 60 months depending on the package purchased by the customer. |
After Sales Through Life Support (TLS) [Member] | Minimum [Member] | |
Deferred revenue, amortized term | 36 months |
After Sales Through Life Support (TLS) [Member] | Maximum [Member] | |
Deferred revenue, amortized term | 60 months |
Concentrations (Details Narrati
Concentrations (Details Narrative) | 3 Months Ended | ||
Jan. 31, 2019USD ($)Customer | Jan. 31, 2018USD ($)Customer | Oct. 31, 2018USD ($) | |
Total net sales | $ 5,758,508 | $ 3,050,557 | |
Accounts receivable from customer | $ 4,407,277 | $ 3,326,623 | |
Two Customers [Member] | |||
Number of customers | Customer | 2 | ||
Percentage of sales from customers | 10.00% | ||
Two Customers [Member] | Revenue [Member] | Customer Concentration Risk [Member] | |||
Percentage of sales from customers | 45.00% | ||
Total net sales | $ 2,616,171 | ||
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Percentage of sales from customers | 22.00% | ||
Accounts receivable from customer | $ 990,039 | ||
One Customer [Member] | |||
Number of customers | Customer | 1 | ||
Percentage of sales from customers | 10.00% | ||
One Customer [Member] | Revenue [Member] | Customer Concentration Risk [Member] | |||
Percentage of sales from customers | 12.00% | ||
Total net sales | $ 364,661 | ||
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Percentage of sales from customers | 12.00% | ||
Accounts receivable from customer | $ 227,420 |
Loans and Notes Payable - Sched
Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) - USD ($) | Jan. 31, 2019 | Oct. 31, 2018 |
Total | $ 1,410,216 | $ 2,024,239 |
Less: current portion | (470,128) | (964,695) |
Total Long-Term Loans and Notes Payable | 940,088 | 1,059,544 |
Secured Debt [Member] | ||
Total | 1,410,216 | 1,524,239 |
Unsecured Debt [Member] | ||
Total | $ 500,000 |
Loans and Notes Payable - Sch_2
Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Jan. 31, 2019 | Oct. 31, 2018 | |
Secured Debt [Member] | ||
Loan, annual interest rate | 4.56% | 4.56% |
Loan interest payment, description | Secured note payable to HSBC with interest payable on the 28th day of each month at 4.56% per annum. | Secured note payable to HSBC with interest payable on the 28th day of each month at 4.56% per annum. |
Principal and interest payment | $ 43,777 | |
Unsecured Debt [Member] | ||
Secured debenture, maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
Debt, interest rate | 4.50% | 4.50% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |
Equity [Abstract] | |||
Balance, beginning of year | $ (2,228,663) | $ (2,038,431) | $ (2,038,431) |
Total other comprehensive income (loss) for the year - foreign currency translation adjustment | 297,855 | $ 955,937 | (190,232) |
Balance, end of period | $ (1,930,808) | $ (2,228,663) |
Earning Per Common Share (Detai
Earning Per Common Share (Details Narrative) | 12 Months Ended |
Jan. 31, 2019shares | |
NET INCOME (LOSS) PER SHARE: | |
Common stock equivalents, excluded from computation as the effect would be anti-dilutive | 200,000 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
NET INCOME (LOSS) PER SHARE: | ||
Net Income (Loss) | $ 1,239,013 | $ (167,939) |
Basic weighted average common shares outstanding | 10,660,694 | 9,172,837 |
Conversion of Series C Preferred Stock | ||
Diluted outstanding shares | 10,660,694 | 9,172,837 |
Earnings from continuing operations, Basic | $ 0.12 | $ (0.02) |
Earnings from continuing operations, Diluted | $ 0.12 | $ (0.02) |
Segment Analysis (Details Narra
Segment Analysis (Details Narrative) | 3 Months Ended |
Jan. 31, 2019Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Analysis - Schedule of
Segment Analysis - Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |
Revenues from External Customers | $ 5,758,508 | $ 3,050,557 | |
Cost of Revenues | 2,225,436 | 946,107 | |
Gross Profit | 3,533,072 | 2,104,450 | |
Research & Development | 571,326 | 670,539 | |
Selling, General & Administrative | 1,619,275 | 1,505,757 | |
Total Operating Expenses | 2,190,601 | 2,176,296 | |
Operating Income (Loss) | 1,342,471 | (71,846) | |
Other Income | 32,841 | 6,655 | |
Interest (Expense) | (25,061) | (102,748) | |
Total Other Income (Expense) | 7,780 | (96,093) | |
Net Income (Loss) before income taxes | 1,350,251 | (167,939) | |
Current tax benefit (expense) | 77,967 | ||
Deferred tax benefit | (189,205) | ||
Income tax benefit (expense) | (111,238) | ||
Net Income (Loss) | 1,239,013 | (167,939) | |
Total Assets | 31,057,332 | 28,963,661 | $ 28,736,611 |
Total Liabilities | 5,028,069 | 9,394,063 | $ 4,349,661 |
Revenues from Intercompany Sales - eliminated from sales above | 1,277,069 | 1,156,407 | |
Depreciation and Amortization | 194,718 | 220,170 | |
Purchases of Long-lived Assets | 919,135 | 245,822 | |
Marine Technology Business (Products) [Member] | |||
Revenues from External Customers | 2,829,536 | 2,042,942 | |
Cost of Revenues | 717,306 | 430,131 | |
Gross Profit | 2,112,230 | 1,612,811 | |
Research & Development | 471,425 | 442,274 | |
Selling, General & Administrative | 754,660 | 577,565 | |
Total Operating Expenses | 1,226,085 | 1,019,839 | |
Operating Income (Loss) | 886,145 | 592,972 | |
Other Income | 32,841 | 6,655 | |
Interest (Expense) | (2,474) | (4,419) | |
Total Other Income (Expense) | 30,367 | 2,236 | |
Net Income (Loss) before income taxes | 916,512 | 595,208 | |
Current tax benefit (expense) | 7,293 | ||
Deferred tax benefit | (6,924) | ||
Income tax benefit (expense) | 369 | ||
Net Income (Loss) | 916,881 | 595,208 | |
Total Assets | 16,709,072 | 12,419,192 | |
Total Liabilities | 2,163,421 | 862,542 | |
Revenues from Intercompany Sales - eliminated from sales above | 546,863 | 471,218 | |
Depreciation and Amortization | 124,608 | 137,518 | |
Purchases of Long-lived Assets | 916,023 | 201,917 | |
Marine Engineering Business (Services) [Member] | |||
Revenues from External Customers | 2,928,972 | 1,007,615 | |
Cost of Revenues | 1,508,130 | 515,976 | |
Gross Profit | 1,420,842 | 491,639 | |
Research & Development | 32,549 | 228,265 | |
Selling, General & Administrative | 594,046 | 630,874 | |
Total Operating Expenses | 626,595 | 859,139 | |
Operating Income (Loss) | 794,247 | (367,500) | |
Other Income | |||
Interest (Expense) | (4,581) | (14,949) | |
Total Other Income (Expense) | (4,581) | (14,949) | |
Net Income (Loss) before income taxes | 789,666 | (382,449) | |
Current tax benefit (expense) | 44,924 | ||
Deferred tax benefit | (115,867) | ||
Income tax benefit (expense) | (70,943) | ||
Net Income (Loss) | 718,723 | (382,449) | |
Total Assets | 12,272,308 | 11,095,135 | |
Total Liabilities | 1,328,238 | 1,405,271 | |
Revenues from Intercompany Sales - eliminated from sales above | 55,206 | 10,189 | |
Depreciation and Amortization | 66,290 | 79,715 | |
Purchases of Long-lived Assets | 3,112 | 43,905 | |
Overhead [Member] | |||
Revenues from External Customers | |||
Cost of Revenues | |||
Gross Profit | |||
Research & Development | 67,352 | ||
Selling, General & Administrative | 270,569 | 297,318 | |
Total Operating Expenses | 337,921 | 297,318 | |
Operating Income (Loss) | (337,921) | (297,318) | |
Other Income | |||
Interest (Expense) | (18,006) | (83,380) | |
Total Other Income (Expense) | (18,006) | (83,380) | |
Net Income (Loss) before income taxes | (355,927) | (380,698) | |
Current tax benefit (expense) | 25,750 | ||
Deferred tax benefit | (66,414) | ||
Income tax benefit (expense) | (40,664) | ||
Net Income (Loss) | (396,591) | (380,698) | |
Total Assets | 2,075,952 | 5,449,334 | |
Total Liabilities | 1,536,410 | 7,126,250 | |
Revenues from Intercompany Sales - eliminated from sales above | 675,000 | 675,000 | |
Depreciation and Amortization | 3,820 | 2,937 | |
Purchases of Long-lived Assets |
Segment Analysis - Schedule o_2
Segment Analysis - Schedule of Disaggregate of Revenue from Contracts for Sale with Customers by Geographic Location (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Total net sales | $ 5,758,508 | $ 3,050,557 |
Equipment Sales [Member] | ||
Total net sales | 1,674,737 | |
Equipment Rentals [Member] | ||
Total net sales | 507,920 | |
Engineering Parts [Member] | ||
Total net sales | 2,864,996 | |
Services [Member] | ||
Total net sales | 456,704 | |
Software Sales [Member] | ||
Total net sales | 254,151 | |
United States [Member] | ||
Total net sales | 2,693,913 | |
United States [Member] | Equipment Sales [Member] | ||
Total net sales | 50,559 | |
United States [Member] | Equipment Rentals [Member] | ||
Total net sales | 53,483 | |
United States [Member] | Engineering Parts [Member] | ||
Total net sales | 2,190,192 | |
United States [Member] | Services [Member] | ||
Total net sales | 399,679 | |
Europe [Member] | ||
Total net sales | 1,133,844 | |
Europe [Member] | Equipment Sales [Member] | ||
Total net sales | 421,386 | |
Europe [Member] | Equipment Rentals [Member] | ||
Total net sales | 160,389 | |
Europe [Member] | Engineering Parts [Member] | ||
Total net sales | 321,942 | |
Europe [Member] | Services [Member] | ||
Total net sales | 140,552 | |
Europe [Member] | Software Sales [Member] | ||
Total net sales | 89,575 | |
Australia/Asia [Member] | ||
Total net sales | 1,817,201 | |
Australia/Asia [Member] | Equipment Sales [Member] | ||
Total net sales | 1,192,319 | |
Australia/Asia [Member] | Equipment Rentals [Member] | ||
Total net sales | 257,918 | |
Australia/Asia [Member] | Services [Member] | ||
Total net sales | 223,375 | |
Australia/Asia [Member] | Software Sales [Member] | ||
Total net sales | 143,589 | |
Middle East & Africa [Member] | ||
Total net sales | 113,550 | |
Middle East & Africa [Member] | Equipment Sales [Member] | ||
Total net sales | 10,473 | |
Middle East & Africa [Member] | Equipment Rentals [Member] | ||
Total net sales | 36,130 | |
Middle East & Africa [Member] | Services [Member] | ||
Total net sales | 45,960 | |
Middle East & Africa [Member] | Software Sales [Member] | ||
Total net sales | 20,987 | |
Marine Technology Business [Member] | ||
Total net sales | 2,829,536 | |
Marine Technology Business [Member] | Equipment Sales [Member] | ||
Total net sales | 1,574,051 | |
Marine Technology Business [Member] | Equipment Rentals [Member] | ||
Total net sales | 507,920 | |
Marine Technology Business [Member] | Engineering Parts [Member] | ||
Total net sales | 352,862 | |
Marine Technology Business [Member] | Services [Member] | ||
Total net sales | 140,552 | |
Marine Technology Business [Member] | Software Sales [Member] | ||
Total net sales | 254,151 | |
Marine Technology Business [Member] | United States [Member] | ||
Total net sales | 184,560 | |
Marine Technology Business [Member] | United States [Member] | Equipment Sales [Member] | ||
Total net sales | 47,550 | |
Marine Technology Business [Member] | United States [Member] | Equipment Rentals [Member] | ||
Total net sales | 53,483 | |
Marine Technology Business [Member] | United States [Member] | Engineering Parts [Member] | ||
Total net sales | ||
Marine Technology Business [Member] | United States [Member] | Services [Member] | ||
Total net sales | 83,527 | |
Marine Technology Business [Member] | Europe [Member] | ||
Total net sales | 714,225 | |
Marine Technology Business [Member] | Europe [Member] | Equipment Sales [Member] | ||
Total net sales | 323,709 | |
Marine Technology Business [Member] | Europe [Member] | Equipment Rentals [Member] | ||
Total net sales | 160,389 | |
Marine Technology Business [Member] | Europe [Member] | Engineering Parts [Member] | ||
Total net sales | ||
Marine Technology Business [Member] | Europe [Member] | Services [Member] | ||
Total net sales | 140,552 | |
Marine Technology Business [Member] | Europe [Member] | Software Sales [Member] | ||
Total net sales | 89,575 | |
Marine Technology Business [Member] | Australia/Asia [Member] | ||
Total net sales | 1,817,201 | |
Marine Technology Business [Member] | Australia/Asia [Member] | Equipment Sales [Member] | ||
Total net sales | 1,192,319 | |
Marine Technology Business [Member] | Australia/Asia [Member] | Equipment Rentals [Member] | ||
Total net sales | 257,918 | |
Marine Technology Business [Member] | Australia/Asia [Member] | Services [Member] | ||
Total net sales | 223,375 | |
Marine Technology Business [Member] | Australia/Asia [Member] | Software Sales [Member] | ||
Total net sales | 143,589 | |
Marine Technology Business [Member] | Middle East & Africa [Member] | ||
Total net sales | 113,550 | |
Marine Technology Business [Member] | Middle East & Africa [Member] | Equipment Sales [Member] | ||
Total net sales | 10,473 | |
Marine Technology Business [Member] | Middle East & Africa [Member] | Equipment Rentals [Member] | ||
Total net sales | 36,130 | |
Marine Technology Business [Member] | Middle East & Africa [Member] | Services [Member] | ||
Total net sales | 45,960 | |
Marine Technology Business [Member] | Middle East & Africa [Member] | Software Sales [Member] | ||
Total net sales | 20,987 | |
Marine Engineering Business [Member] | ||
Total net sales | 2,928,972 | |
Marine Engineering Business [Member] | Equipment Sales [Member] | ||
Total net sales | 100,686 | |
Marine Engineering Business [Member] | Equipment Rentals [Member] | ||
Total net sales | ||
Marine Engineering Business [Member] | Engineering Parts [Member] | ||
Total net sales | 2,512,134 | |
Marine Engineering Business [Member] | Services [Member] | ||
Total net sales | 316,152 | |
Marine Engineering Business [Member] | Software Sales [Member] | ||
Total net sales | ||
Marine Engineering Business [Member] | United States [Member] | ||
Total net sales | 2,509,353 | |
Marine Engineering Business [Member] | United States [Member] | Equipment Sales [Member] | ||
Total net sales | 3,009 | |
Marine Engineering Business [Member] | United States [Member] | Equipment Rentals [Member] | ||
Total net sales | ||
Marine Engineering Business [Member] | United States [Member] | Engineering Parts [Member] | ||
Total net sales | 2,190,192 | |
Marine Engineering Business [Member] | United States [Member] | Services [Member] | ||
Total net sales | 316,152 | |
Marine Engineering Business [Member] | Europe [Member] | ||
Total net sales | 419,619 | |
Marine Engineering Business [Member] | Europe [Member] | Equipment Sales [Member] | ||
Total net sales | 97,677 | |
Marine Engineering Business [Member] | Europe [Member] | Equipment Rentals [Member] | ||
Total net sales | ||
Marine Engineering Business [Member] | Europe [Member] | Engineering Parts [Member] | ||
Total net sales | 321,942 | |
Marine Engineering Business [Member] | Europe [Member] | Services [Member] | ||
Total net sales | ||
Marine Engineering Business [Member] | Europe [Member] | Software Sales [Member] | ||
Total net sales | ||
Marine Engineering Business [Member] | Australia/Asia [Member] | ||
Total net sales | ||
Marine Engineering Business [Member] | Middle East & Africa [Member] | ||
Total net sales |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | |||
Net operating loss | $ 7,452,210 | ||
Net operating loss, expiration year | 20 years | ||
Net operating loss carry-forward | $ 1,564,964 | $ 1,754,169 | |
Alternative minimum tax refund | $ 77,967 | $ 7,840 |
Income Taxes - Summary of NOL C
Income Taxes - Summary of NOL Carryforwards (Details) | Jan. 31, 2019USD ($) |
NOL carryforwards | $ 7,452,210 |
2028 [Member] | |
NOL carryforwards | 1,806,182 |
2029 [Member] | |
NOL carryforwards | $ 5,646,028 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Mar. 05, 2019 | Jan. 31, 2019 | Jan. 31, 2018 |
Purchase of new business property | $ 919,135 | $ 245,822 | |
Subsequent Event [Member] | |||
Purchase of new business property | $ 684,000 | ||
Subsequent Event [Member] | Executive Officers [Member] | |||
Sales of residential property for cash | $ 725,000 |