Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2019 | Sep. 16, 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 | Jul. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,691,524 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 9,803,773 | $ 7,512,422 |
Accounts Receivable, net | 3,851,791 | 3,326,623 |
Inventory | 4,354,820 | 3,823,243 |
Unbilled Receivables | 4,313,610 | 3,013,116 |
Other Current Assets | 489,595 | 219,424 |
Prepaid Expenses | 245,061 | 227,479 |
Total Current Assets | 23,058,650 | 18,122,307 |
FIXED ASSETS | ||
Property and Equipment, net | 5,762,339 | 5,246,183 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,619,738 | 3,613,952 |
Deferred Tax Asset | 903,182 | 1,754,169 |
Total Other Assets | 4,522,920 | 5,368,121 |
Total Assets | 33,343,909 | 28,736,611 |
CURRENT LIABILITIES | ||
Accounts Payable | 1,606,607 | 988,148 |
Accrued Expenses and Other Current Liabilities | 610,478 | 685,454 |
Loans and Note Payable, current | 481,633 | 964,695 |
Deferred Revenue, current | 889,727 | 602,914 |
Total Current Liabilities | 3,588,445 | 3,241,211 |
LONG TERM LIABILITIES | ||
Deferred Revenue, long term | 143,587 | 48,906 |
Loans and Note Payable, long term | 696,164 | 1,059,544 |
Total Long Term Liabilities | 839,751 | 1,108,450 |
Total Liabilities | 4,428,196 | 4,349,661 |
STOCKHOLDERS' EQUITY | ||
Common Stock, $.001 par value; 150,000,000 shares authorized, 10,691,524 and 10,640,416 shares issued and outstanding as of July 31, 2019 and October 31, 2018, respectively | 10,692 | 10,641 |
Additional Paid-in Capital | 59,205,375 | 58,599,378 |
Accumulated Other Comprehensive Loss | (3,294,142) | (2,228,663) |
Accumulated Deficit | (27,006,212) | (31,994,406) |
Total Stockholders' Equity | 28,915,713 | 24,386,950 |
Total Liabilities and Stockholders' Equity | $ 33,343,909 | $ 28,736,611 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 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 | 10,691,524 | 10,640,416 |
Common stock, shares outstanding | 10,691,524 | 10,640,416 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Statement [Abstract] | ||||
Net Revenues | $ 6,668,498 | $ 5,778,473 | $ 19,210,278 | $ 12,355,426 |
Cost of Revenues | 2,120,680 | 1,584,200 | 6,404,726 | 3,471,165 |
Gross Profit | 4,547,818 | 4,194,273 | 12,805,552 | 8,884,261 |
OPERATING EXPENSES | ||||
Research & Development | 631,690 | 530,392 | 1,948,243 | 1,841,408 |
Selling, General & Administrative | 1,775,909 | 1,640,842 | 5,091,866 | 5,172,229 |
Total Operating Expenses | 2,407,599 | 2,171,234 | 7,040,109 | 7,013,637 |
INCOME FROM OPERATIONS | 2,140,219 | 2,023,039 | 5,765,443 | 1,870,624 |
OTHER INCOME (EXPENSE) | ||||
Other Income | 6,398 | 3,972 | 65,467 | 94,642 |
Interest Expense | (20,275) | (29,421) | (69,683) | (212,910) |
Total Other Income (Expense) | (13,877) | (25,449) | (4,216) | (118,268) |
NET INCOME BEFORE INCOME TAXES | 2,126,342 | 1,997,590 | 5,761,227 | 1,752,356 |
INCOME TAX BENEFIT (EXPENSE) | ||||
Current Tax Benefit (Expense) | (38) | 20 | 77,954 | (10) |
Deferred Tax (Expense) | (350,617) | (850,987) | ||
Total Income Tax Benefit (Expense) | (350,655) | 20 | (773,033) | (10) |
NET INCOME | $ 1,775,687 | $ 1,997,610 | $ 4,988,194 | $ 1,752,346 |
NET INCOME PER SHARE: | ||||
Basic | $ 0.17 | $ 0.19 | $ 0.47 | $ 0.18 |
Diluted | $ 0.17 | $ 0.19 | $ 0.47 | $ 0.17 |
WEIGHTED AVERAGE SHARES: | ||||
Basic | 10,679,876 | 10,415,416 | 10,670,642 | 9,976,917 |
Diluted | 10,679,876 | 10,615,416 | 10,670,642 | 10,176,917 |
NET INCOME | $ 1,775,687 | $ 1,997,610 | $ 4,988,194 | $ 1,752,346 |
Other Comprehensive (Loss) Income | ||||
Foreign Currency Translation Adjustment | (1,458,315) | (270,370) | (1,065,479) | 304,566 |
Total Other Comprehensive (Loss) Income | (1,458,315) | (270,370) | (1,065,479) | 304,566 |
COMPREHENSIVE INCOME | $ 317,372 | $ 1,727,240 | $ 3,922,715 | $ 2,056,912 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock Series C [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Balance at Oct. 31, 2017 | $ 1 | $ 9,136 | $ 52,839,651 | $ (2,038,431) | $ (36,982,937) | $ 13,827,420 |
Balance, shares at Oct. 31, 2017 | 1,000 | 9,136,121 | ||||
Stock issued to investors | $ 1,126 | 4,953,054 | 4,954,180 | |||
Stock issued to investors, shares | 1,125,950 | |||||
Foreign currency translation adjustment | 955,937 | 955,937 | ||||
Net Income (Loss) | (167,939) | (167,939) | ||||
Balance at Jan. 31, 2018 | $ 1 | $ 10,262 | 57,792,705 | (1,082,494) | (37,150,876) | 19,569,598 |
Balance, shares at Jan. 31, 2018 | 1,000 | 10,262,071 | ||||
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 | ||||
Foreign currency translation adjustment | 304,566 | |||||
Net Income (Loss) | 1,752,346 | |||||
Balance at Jul. 31, 2018 | $ 1 | $ 10,415 | 58,485,853 | (1,733,865) | (35,230,591) | 21,531,813 |
Balance, shares at Jul. 31, 2018 | 1,000 | 10,415,416 | ||||
Balance at Jan. 31, 2018 | $ 1 | $ 10,262 | 57,792,705 | (1,082,494) | (37,150,876) | 19,569,598 |
Balance, shares at Jan. 31, 2018 | 1,000 | 10,262,071 | ||||
Stock issued to investors | $ 78 | 358,474 | 358,552 | |||
Stock issued to investors, shares | 77,777 | |||||
Stock Issued to a Consultant | $ 12 | 57,238 | 57,250 | |||
Stock Issued to a Consultant, 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 | (381,001) | (381,001) | ||||
Net Income (Loss) | (77,325) | (77,325) | ||||
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 | ||||
Foreign currency translation adjustment | (270,370) | (270,370) | ||||
Net Income (Loss) | 1,997,610 | 1,997,610 | ||||
Balance at Jul. 31, 2018 | $ 1 | $ 10,415 | 58,485,853 | (1,733,865) | (35,230,591) | 21,531,813 |
Balance, shares at Jul. 31, 2018 | 1,000 | 10,415,416 | ||||
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 (Loss) | 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 | |||||
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 | |||||
Foreign currency translation adjustment | (1,065,479) | |||||
Net Income (Loss) | 4,988,194 | |||||
Balance at Jul. 31, 2019 | $ 10,692 | 59,205,375 | (3,294,142) | (27,006,212) | 28,915,713 | |
Balance, shares at Jul. 31, 2019 | 10,691,524 | |||||
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 | |||||
Stock issued to Director | $ 8 | 42,281 | 42,289 | |||
Stock issued to Director, shares | 7,143 | |||||
Foreign currency translation adjustment | 94,981 | 94,981 | ||||
Net Income (Loss) | 1,973,494 | 1,973,494 | ||||
Balance at Apr. 30, 2019 | $ 10,672 | 58,747,081 | (1,835,827) | (28,781,899) | 28,140,027 | |
Balance, shares at Apr. 30, 2019 | 10,671,524 | |||||
Stock Issued to a Consultant | $ 20 | 291,780 | 291,800 | |||
Stock Issued to a Consultant, shares | 20,000 | |||||
Disgorgement of stock sales | 166,514 | 166,514 | ||||
Foreign currency translation adjustment | (1,458,315) | (1,458,315) | ||||
Net Income (Loss) | 1,775,687 | 1,775,687 | ||||
Balance at Jul. 31, 2019 | $ 10,692 | $ 59,205,375 | $ (3,294,142) | $ (27,006,212) | $ 28,915,713 | |
Balance, shares at Jul. 31, 2019 | 10,691,524 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 4,988,194 | $ 1,752,346 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 594,606 | 605,645 |
Stock compensation | 334,089 | 334,749 |
Loss on the sale of property and equipment | 36,344 | |
(Increase) decrease in operating assets: | ||
Accounts receivable | (525,168) | (2,343,834) |
Inventory | (531,577) | (535,657) |
Unbilled receivables | (1,300,494) | 373,301 |
Other current assets | (270,171) | 206,955 |
Prepaid expenses | (17,582) | 106,812 |
Deferred tax asset | 850,987 | |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | 543,483 | (47,392) |
Deferred revenue | 381,494 | (126,256) |
Net Cash Provided by Operating Activities | 5,084,205 | 326,669 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (1,843,589) | (442,041) |
Purchases of other intangible assets | (34,303) | |
Proceeds from the sale of propety and equipment | 725,000 | |
Net Cash (used in) Investing Activities | (1,152,892) | (442,041) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayments - loans and notes payable | (846,442) | (5,642,202) |
Disgorgement of stock sales | 166,514 | |
Issuance of common stock for cash | 105,445 | 5,312,732 |
Net Cash (Used) in Financing Activities | (574,483) | (329,470) |
EFFECT OF CURRENCY EXCHANGE RATE ON CHANGES IN CASH | (1,065,479) | 304,566 |
NET INCREASE (DECREASE) IN CASH | 2,291,351 | (140,276) |
CASH AT THE BEGINNING OF THE PERIOD | 7,512,422 | 6,851,539 |
CASH AT THE END OF THE PERIOD | 9,803,773 | 6,711,263 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 69,499 | 178,785 |
Cash paid for taxes | $ 7,840 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 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 and April 23, 2019), (“the Form 10-K”). The results of operations for the interim period ended July 31, 2019 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, 2018, 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 July 31, 2019 and the results of operations, comprehensive income and cash flows for the interim periods ended July 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 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 | 9 Months Ended |
Jul. 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 are 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 transaction 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 and are recognized as revenue when the Company has fulfilled its obligations under the respective contracts. Until such time, we recognize this prepayment as deferred revenue. 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 quarterly 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 our Product Segment and Services Segment including information on the split of revenues by geography. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Jul. 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, receivables, accounts payable and the line of credit. The Company adjusts the carrying value of financial assets and liabilities denominated in other currencies such as cash, receivables, accounts payable and the lines of credit using the appropriate exchange rates at the balance sheet date. The Company believes that the carrying values of these short term financial instruments approximate their estimated fair values. |
Foreign Currency Translation
Foreign Currency Translation | 9 Months Ended |
Jul. 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 in the jurisdiction in which the subsidiary operates as the functional currency. Assets and liabilities of operations denominated in foreign currencies are translated into US dollars at exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the weighted average exchange rates during the reporting period. The resulting translation gains and/or losses on assets and liabilities are recorded in accumulated other comprehensive income (loss), and are excluded from net income (loss) until realized through a sale or liquidation of the investment. |
Inventory
Inventory | 9 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 5 - INVENTORY Inventory is stated at the lower of cost (weighted average method) or net realizable value. Inventory consisted of the following components: July 31, 2019 October 31, 2018 Raw materials and parts $ 3,251,696 $ 2,887,505 Work in progress 603,343 472,204 Finished goods 499,781 463,534 Total Inventory $ 4,354,820 $ 3,823,243 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 6 – FIXED ASSETS Fixed assets (without foreign currency adjustments) consist of the following components: October 31, July 31, 2019 2018 Acquisitions Disposals Balance Buildings $ 3,996,860 $ 1,226,209 $ (730,000 ) $ 4,493,069 Land 200,000 - - 200,000 Office machinery and equipment 2,875,443 592,371 (81,192 ) 3,386,622 Furniture, fixtures and improvements 1,109,225 25,009 - 1,134,234 Totals 8,181,528 1,843,589 (811,192 ) 9,213,925 Less: accumulated depreciation (2,935,345 ) (566,089 ) 49,848 (3,451,586 ) Property and Equipment - net $ 5,246,183 $ 1,277,500 $ (761,344 ) $ 5,762,339 October 31, October 31, 2018 2017 Acquisitions Disposals Balance Buildings $ 4,082,346 $ - (85,486 ) $ 3,996,860 Land 200,000 - - 200,000 Office machinery and equipment 2,064,449 853,796 (42,802 ) 2,875,443 Furniture, fixtures and improvements 1,165,897 38,344 (95,016 ) 1,109,225 Totals 7,512,692 892,140 (223,304 ) 8,181,528 Less: accumulated depreciation (2,299,411 ) (758,408 ) 122,474 (2,935,345 ) Property and Equipment - net $ 5,213,281 $ 133,732 $ (100,830 ) $ 5,246,183 |
Other Current Assets
Other Current Assets | 9 Months Ended |
Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | NOTE 7 – OTHER CURRENT ASSETS Other current assets consisted of the following components: July 31, 2019 October 31, 2018 Deposits $ 131,020 $ 21,007 Other receivables 76,995 141,294 Alternative minium tax receivable 75,004 - VAT tax receivables 206,576 57,123 Total Other Current Assets $ 489,595 $ 219,424 |
Estimates
Estimates | 9 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Estimates | NOTE 8 – ESTIMATES The preparation of consolidated financial statements in conformity with US Generally Accepted Accounting Principles (“US 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 estimated earnings in excess of billings, billings in excess of costs, estimated earnings, valuation of accounts receivable, valuation of fixed assets, valuation of inventory, valuation of deferred tax assets and the valuation of goodwill. |
Contracts in Progress
Contracts in Progress | 9 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contracts in Progress | NOTE 9 – 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 consolidated balance sheets. These amounts are stated on the consolidated balance sheets as unbilled receivables of $4,313,610 and $3,013,116 as of July 31, 2019 and October 31, 2018, respectively. Our deferred revenue of $1,033,314 and $651,820 as of July 31, 2019 and October 31, 2018, respectively, consists of billings in excess of costs and estimated earnings and revenues received as part of our warranty or Through Life Support (“TLS”) obligations upon completing a sale – elaborated further in the last paragraph of this note. Billings in excess of costs and estimated earnings on uncompleted contracts represent project invoices billed to customers that have not been earned as of the date of the consolidated balance sheets. These amounts are stated on the consolidated balance sheets as a component of deferred revenue of $84,776 and $0 as of July 31, 2019 and October 31, 2018, respectively. Revenue received as part of sales of products via our Products Segment includes a provision for warranty or TLS. TLS offers the customer extended post-sales technical support along with software and hardware assurances. These post-sales obligations (warranty and TLS) are treated as deferred revenue and are amortized over the period when the contractual obligations subsist, which for warranty is 12 months and TLS varies between 36 and 60 months depending on the package purchased by the customer. These amounts are stated on the consolidated balance sheets as a component of deferred revenue of $948,538 and $651,820 as of July 31, 2019 and October 31, 2018, respectively. |
Concentrations
Concentrations | 9 Months Ended |
Jul. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 10 - CONCENTRATIONS Significant Customers During the three months ended July 31, 2019, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $2,136,570, or 32% of net revenues during the period. Total accounts receivable from this customer at July 31, 2019 was $820,642 or 21% of accounts receivable. During the three months ended July 31, 2018, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $1,113,389, or 19% of net revenues during the period. During the nine months ended July 31, 2019, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $5,345,790, or 28% of net revenues during the period. Total accounts receivable from this customer at July 31, 2019 was $820,642 or 21% of accounts receivable. During the nine months ended July 31, 2018, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenues from this customer was $2,138,815, or 17% of net revenues during the period. The Services Segment business model is such that it works with a small number of Prime Defense Contractors and therefore the concentrations discussed above are a consequence of this and typical in this type of business. |
Loans and Notes Payable
Loans and Notes Payable | 9 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Loans and Notes Payable | NOTE 11 – LOANS AND NOTES PAYABLE July 31, 2019 October 31, 2018 Secured note payable to HSBC NA with interest payable on the 28th day of each month at 4.56% per annum. Our monthly repayment obligation under this loan is $43,777 (comprising both principal and interest repayment). $ 1,177,797 $ 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 1,177,797 2,024,239 Less: current portion (481,633 ) (964,695 ) Total Long Term Loans and Notes Payable $ 696,164 $ 1,059,544 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jul. 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 | 9 Months Ended |
Jul. 31, 2019 | |
NET INCOME PER SHARE: | |
Earnings Per Common Share | NOTE 13 – EARNINGS PER COMMON SHARE Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Fiscal Period July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Numerator: Net Income (Loss) $ 1,775,687 $ 1,997,610 $ 4,988,194 $ 1,752,346 Denominator: Basic weighted average common shares outstanding 10,679,876 10,415,416 10,670,642 9,976,917 Conversion of Series C Preferred Stock - 200,000 - 200,000 Diluted outstanding shares 10,679,876 10,615,416 10,670,642 10,176,917 Earnings from continuing operations Basic $ 0.17 $ 0.19 $ 0.47 $ 0.18 Diluted $ 0.17 $ 0.19 $ 0.47 $ 0.17 |
Segment Analysis
Segment Analysis | 9 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Analysis | NOTE 14 – SEGMENT ANALYSIS We operate 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 “Service Segments”) operate as contractors and Coda Octopus Products operations are comprised primarily of product sales, rental of equipment and/or software and associated services (“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 segment 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, 2018. 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 nine months ended July 31, 2019 and 2018, respectively. The Company’s reportable business segments operate in four geographic locations: ● Americas ● Europe ● Australia/Asia ● Middle East/Africa Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the three and nine months ended July 31, 2019 and 2018 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2019 Revenues from External Customers $ 3,231,510 $ 3,436,988 $ - $ 6,668,498 Cost of Revenues 592,585 1,528,095 - 2,120,680 Gross Profit 2,638,925 1,908,893 - 4,547,818 Research & Development 503,540 32,991 95,159 631,690 Selling, General & Administrative 590,981 659,398 525,530 1,775,909 Total Operating Expenses 1,094,521 692,389 620,689 2,407,599 Income (Loss) from Operations 1,544,404 1,216,504 (620,689 ) 2,140,219 Other Income (Expense) Other Income 6,398 - - 6,398 Interest Expense (2,197 ) (2,150 ) (15,928 ) (20,275 ) Total Other Income (Expense) 4,201 (2,150 ) (15,928 ) (13,877 ) Net Income (Loss) before Income Taxes 1,548,605 1,214,354 (636,617 ) 2,126,342 Income Tax Benefit (Expense) Current Tax Benefit (Expense) (5,172 ) 4,460 674 (38 ) Deferred Tax (Expense) (47,768 ) (214,144 ) (88,705 ) (350,617 ) Total Income Tax (Expense) (52,940 ) (209,684 ) (88,031 ) (350,655 ) Net Income (Loss) $ 1,495,665 $ 1,004,670 $ (724,648 ) $ 1,775,687 Supplemental Disclosures Total Assets $ 18,200,970 $ 13,876,685 $ 1,266,254 $ 33,343,909 Total Liabilities $ 2,169,195 $ 870,492 $ 1,388,509 $ 4,428,196 Revenues from Intercompany Sales - eliminated from sales above $ 136,128 $ 75,729 $ 675,000 $ 886,857 Depreciation and Amortization $ 132,392 $ 63,724 $ 4,078 $ 200,194 (Sales) Purchases of Long-lived Assets $ (262,062 ) $ 5,937 $ 34,303 $ (221,822 ) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2018 Revenues from External Customers $ 3,926,491 $ 1,851,982 $ - $ 5,778,473 Cost of Revenues 650,669 933,531 - 1,584,200 Gross Profit 3,275,822 918,451 - 4,194,273 Research & Development 440,202 90,190 - 530,392 Selling, General & Administrative 723,155 566,692 350,995 1,640,842 Total Operating Expenses 1,163,357 656,882 350,995 2,171,234 Income (Loss) from Operations 2,112,465 261,569 (350,995 ) 2,023,039 Other Income (Expense) Other Income 3,941 31 - 3,972 Interest Expense (2,480 ) (15,802 ) (11,139 ) (29,421 ) Total Other Income (Expense) 1,461 (15,771 ) (11,139 ) (25,449 ) Net Income (Loss) before Income Taxes 2,113,926 245,798 (362,134 ) 1,997,590 Current Tax Benefit - - 20 20 Net Income (Loss) $ 2,113,926 $ 245,798 $ (362,114 ) $ 1,997,610 Supplemental Disclosures Total Assets $ 14,016,131 $ 11,378,558 $ 553,927 $ 25,948,616 Total Liabilities $ 865,138 $ 1,660,291 $ 1,891,374 $ 4,416,803 Revenues from Intercompany Sales - eliminated from sales above $ 44,180 $ 183,800 $ 675,000 $ 902,980 Depreciation and Amortization $ 137,426 $ 66,435 $ 5,728 $ 209,589 Purchases of Long-lived Assets $ 232,575 $ (6,122 ) $ 30,667 $ 257,120 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2019 Revenues from External Customers $ 9,481,229 $ 9,729,049 $ - $ 19,210,278 Cost of Revenues 1,798,800 4,605,926 - 6,404,726 Gross Profit 7,682,429 5,123,123 - 12,805,552 Research & Development 1,533,544 130,205 284,494 1,948,243 Selling, General & Administrative 2,089,442 1,864,503 1,137,921 5,091,866 Total Operating Expenses 3,622,986 1,994,708 1,422,415 7,040,109 Income (Loss) from Operations 4,059,443 3,128,415 (1,422,415 ) 5,765,443 Other Income (Expense) Other Income 65,467 - - 65,467 Interest (Expense) (8,063 ) (11,849 ) (49,771 ) (69,683 ) Total Other Income (Expense) 57,404 (11,849 ) (49,771 ) (4,216 ) Net Income (Loss) before Income Taxes 4,116,847 3,116,566 (1,472,186 ) 5,761,227 Income Tax Benefit (Expense) Current Tax Benefit 20,496 39,445 18,013 77,954 Deferred Tax (Expense) (199,073 ) (447,540 ) (204,374 ) (850,987 ) Total Income Tax (Expense) (178,577 ) (408,095 ) (186,361 ) (773,033 ) Net Income (Loss) $ 3,938,270 $ 2,708,471 $ (1,658,547 ) $ 4,988,194 Supplemental Disclosures Total Assets $ 18,200,970 $ 13,876,685 $ 1,266,254 $ 33,343,909 Total Liabilities $ 2,169,195 $ 870,492 $ 1,388,509 $ 4,428,196 Revenues from Intercompany Sales - eliminated from sales above $ 1,044,595 $ 304,658 $ 2,025,000 $ 3,374,253 Depreciation and Amortization $ 391,516 $ 191,402 $ 11,688 $ 594,606 Purchases of Long-lived Assets $ 1,803,206 $ 40,383 $ 34,303 $ 1,877,892 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2018 Revenues from External Customers $ 8,142,724 $ 4,212,702 $ - $ 12,355,426 Cost of Revenues 1,298,022 2,173,143 - 3,471,165 Gross Profit 6,844,702 2,039,559 - 8,884,261 Research & Development 1,385,994 455,414 - 1,841,408 Selling, General & Administrative 2,150,168 1,813,357 1,208,704 5,172,229 Total Operating Expenses 3,536,162 2,268,771 1,208,704 7,013,637 Income (Loss) from Operations 3,308,540 (229,212 ) (1,208,704 ) 1,870,624 Other Income (Expense) Other Income 92,514 2,128 - 94,642 Interest Expense (9,289 ) (45,503 ) (158,118 ) (212,910 ) Total Other Income (Expense) 83,225 (43,375 ) (158,118 ) (118,268 ) Net Income (Loss) before Income Taxes 3,391,765 (272,587 ) (1,366,822 ) 1,752,356 Current Tax Benefit (Expense) (6,596 ) - 6,586 (10 ) Net Income (Loss) $ 3,385,169 $ (272,587 ) $ (1,360,236 ) $ 1,752,346 Supplemental Disclosures Total Assets $ 14,016,131 $ 11,378,558 $ 553,927 $ 25,948,616 Total Liabilities $ 865,138 $ 1,660,291 $ 1,891,374 $ 4,416,803 Revenues from Intercompany Sales - eliminated from sales above $ 831,352 $ 196,103 $ 2,025,000 $ 3,052,455 Depreciation and Amortization $ 374,076 $ 218,649 $ 12,920 $ 605,645 Purchases of Long-lived Assets $ 486,604 $ 43,839 $ 55,452 $ 585,895 For the Three Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 493,261 $ - $ 493,261 Equipment Rentals 221,567 - 221,567 Software Sales - - - Engineering Parts - 2,259,717 2,259,717 Services 95,698 767,024 862,722 Europe Equipment Sales 418,557 3,235 421,792 Equipment Rentals 322,887 - 322,887 Software Sales 19,259 - 19,259 Engineering Parts - 347,459 347,459 Services 150,216 59,553 209,769 Australia/Asia Equipment Sales 648,640 - 648,640 Equipment Rentals 260,474 - 260,474 Software Sales 81,541 - 81,541 Services 204,273 - 204,273 Middle East & Africa Equipment Sales 290,386 - 290,386 Equipment Rentals - - - Software Sales 21,261 - 21,261 Services 3,490 - 3,490 Total Net Sales $ 3,231,510 $ 3,436,988 $ 6,668,498 For the Three Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 810,526 $ 3,026,741 $ 3,837,267 Europe 910,919 410,247 1,321,166 Australia/Asia 1,194,928 - 1,194,928 Middle East & Africa 315,137 - 315,137 Total Net Sales $ 3,231,510 $ 3,436,988 $ 6,668,498 For the Three Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 1,850,844 $ 3,235 $ 1,854,079 Equipment Rentals 804,928 - 804,928 Software Sales 122,061 - 122,061 Engineering Parts - 2,607,176 2,607,176 Services 453,677 826,577 1,280,254 Total Net Sales $ 3,231,510 $ 3,436,988 $ 6,668,498 For the Three Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 118,488 $ - $ 118,488 Equipment Rentals 323,763 - 323,763 Software Sales 18,625 - 18,625 Engineering Parts - 1,456,962 1,456,962 Services 134,870 7,496 142,366 Europe Equipment Sales 109,410 - 109,410 Equipment Rentals 737,126 - 737,126 Software Sales 29,256 - 29,256 Engineering Parts - 387,524 387,524 Services 323,022 - 323,022 Australia/Asia Equipment Sales 1,175,276 - 1,175,276 Equipment Rentals (3,245 ) - (3,245 ) Software Sales 211,193 - 211,193 Services 136,395 - 136,395 Middle East & Africa Equipment Sales 584,417 - 584,417 Equipment Rentals - - - Software Sales 14,223 - 14,223 Services 13,672 - 13,672 Total Net Sales $ 3,926,491 $ 1,851,982 $ 5,778,473 For the Three Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 595,746 $ 1,464,458 $ 2,060,204 Europe 1,198,814 387,524 1,586,338 Australia/Asia 1,519,619 - 1,519,619 Middle East & Africa 612,312 - 612,312 Total Net Sales $ 3,926,491 $ 1,851,982 $ 5,778,473 For the Three Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 1,987,591 $ - $ 1,987,591 Equipment Rentals 1,057,644 - 1,057,644 Software Sales 273,297 - 273,297 Engineering Parts - 1,844,486 1,844,486 Services 607,959 7,496 615,455 Total Net Sales $ 3,926,491 $ 1,851,982 $ 5,778,473 For the Nine Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 560,339 $ 57,545 $ 617,884 Equipment Rentals 446,594 - 446,594 Software Sales 7,250 - 7,250 Engineering Parts - 6,827,221 6,827,221 Services 915,837 1,646,694 2,562,531 Europe Equipment Sales 1,189,162 114,214 1,303,376 Equipment Rentals 974,394 - 974,394 Software Sales 167,903 - 167,903 Engineering Parts - 1,023,822 1,023,822 Services 628,235 59,553 687,788 Australia/Asia Equipment Sales 2,707,978 - 2,707,978 Equipment Rentals 518,392 - 518,392 Software Sales 283,419 - 283,419 Services 543,314 - 543,314 Middle East & Africa Equipment Sales 300,859 - 300,859 Equipment Rentals 36,130 - 36,130 Software Sales 58,826 - 58,826 Services 142,597 - 142,597 Total Net Sales $ 9,481,229 $ 9,729,049 $ 19,210,278 For the Nine Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 1,930,020 $ 8,531,460 $ 10,461,480 Europe 2,959,694 1,197,589 4,157,283 Australia/Asia 4,053,103 - 4,053,103 Middle East & Africa 538,412 - 538,412 Total Net Sales $ 9,481,229 $ 9,729,049 $ 19,210,278 For the Nine Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 4,758,338 $ 171,759 $ 4,930,097 Equipment Rentals 1,975,510 - 1,975,510 Software Sales 517,398 - 517,398 Engineering Parts - 7,851,043 7,851,043 Services 2,229,983 1,706,247 3,936,230 Total Net Sales $ 9,481,229 $ 9,729,049 $ 19,210,278 For the Nine Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 712,945 $ - $ 712,945 Equipment Rentals 457,690 - 457,690 Software Sales 52,145 - 52,145 Engineering Parts - 2,826,029 2,826,029 Services 730,453 95,082 825,535 Europe Equipment Sales 1,030,167 192,078 1,222,245 Equipment Rentals 1,065,417 - 1,065,417 Software Sales 176,657 - 176,657 Engineering Parts - 1,099,513 1,099,513 Services 611,154 - 611,154 Australia/Asia Equipment Sales 1,590,510 - 1,590,510 Equipment Rentals 69,019 - 69,019 Software Sales 369,167 - 369,167 Services 221,940 - 221,940 Middle East & Africa Equipment Sales 905,933 - 905,933 Equipment Rentals 11,444 - 11,444 Software Sales 75,519 - 75,519 Services 62,564 - 62,564 Total Net Sales $ 8,142,724 $ 4,212,702 $ 12,355,426 For the Nine Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 1,953,233 $ 2,921,111 $ 4,874,344 Europe 2,883,395 1,291,591 4,174,986 Australia/Asia 2,250,636 - 2,250,636 Middle East & Africa 1,055,460 - 1,055,460 Total Net Sales $ 8,142,724 $ 4,212,702 $ 12,355,426 For the Nine Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 4,239,555 $ 192,078 $ 4,431,633 Equipment Rentals 1,603,570 - 1,603,570 Software Sales 673,488 - 673,488 Engineering Parts - 3,925,542 3,925,542 Services 1,626,111 95,082 1,721,193 Total Net Sales $ 8,142,724 $ 4,212,702 $ 12,355,426 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 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 the equivalent returns 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. There are no material uncertain tax positions included in the accompanying unaudited consolidated financial statements at July 31, 2019 and the audited consolidated financial statements at October 31, 2018. 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 federal tax Net Operating Loss (“NOL”) carryforwards of $8,353,186 as of October 31, 2018 which will expire at various dates in the next 20 years. Such NOL carryforwards expire as follows: 2028 $ 2,707,158 2029 5,646,028 Total $ 8,353,186 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. 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 carryforward is $903,182 and was $1,754,169 as of July 31, 2019 and October 31, 2018 respectively. For the nine months ended July 31, 2019 the Company had an Alternative Minimum Tax refund of $77,754 and for the year ended October 31, 2018 had an Alternative Minimum Tax of $7,840. Components of deferred tax assets as of July 31, 2019 and October 31, 2018 are as follows: July 31, 2019 October 31, 2018 Net operating loss carry-forward benefit $ 903,182 $ 1,754,169 Net deferred tax asset $ 903,182 $ 1,754,169 The Company did not incur any regular income tax but did incur an Alternative Minimum Tax expense in the U.S. for the year ended October 31, 2018. For financial purposes in its U.S. entities and other foreign entities not included above, the Company has been able to use net operating loss carryforwards and other timing differences during the current and prior year to offset any tax liabilities in the various tax jurisdictions. The Company’s income tax returns are subject to audit by taxing authorities for the years ending October 31, 2016. |
Capital Stock
Capital Stock | 9 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | NOTE 16 – CAPITAL STOCK On or around November 16, 2018, the Company issued an aggregate of 23,965 shares of its common stock at a value of $4.40 for each share for a total of $105,446 in cash. The stock was issued pursuant to an anti-dilutive agreement for the private place in January 2018. On or around February 3, 2019, the Company issued an aggregate of 7,143 shares of its common stock at a value of $5.92 for each share to a director pursuant to the terms of his appointment. On or around June 24, 2019, the Company issued an aggregate of 20,000 shares of its common stock at a value of $14.59 for each share to a consultant for services rendered. Disgorgement Proceeds During March 2019, the Company became aware of possible short swing profits triggered by the sale of common stock by a beneficial owner pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended. Following discussions with the stockholder for the purpose of recovering such profits, on May 17, 2019, the Company received a payment of $166,514 representing the entire amount of short swing profits. The Company recognized these proceeds as a capital contribution from stockholders with a corresponding increase to additional paid-in capital. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory is stated at the lower of cost (weighted average method) or net realizable value. Inventory consisted of the following components: July 31, 2019 October 31, 2018 Raw materials and parts $ 3,251,696 $ 2,887,505 Work in progress 603,343 472,204 Finished goods 499,781 463,534 Total Inventory $ 4,354,820 $ 3,823,243 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets (without foreign currency adjustments) consist of the following components: October 31, July 31, 2019 2018 Acquisitions Disposals Balance Buildings $ 3,996,860 $ 1,226,209 $ (730,000 ) $ 4,493,069 Land 200,000 - - 200,000 Office machinery and equipment 2,875,443 592,371 (81,192 ) 3,386,622 Furniture, fixtures and improvements 1,109,225 25,009 - 1,134,234 Totals 8,181,528 1,843,589 (811,192 ) 9,213,925 Less: accumulated depreciation (2,935,345 ) (566,089 ) 49,848 (3,451,586 ) Property and Equipment - net $ 5,246,183 $ 1,277,500 $ (761,344 ) $ 5,762,339 October 31, October 31, 2018 2017 Acquisitions Disposals Balance Buildings $ 4,082,346 $ - (85,486 ) $ 3,996,860 Land 200,000 - - 200,000 Office machinery and equipment 2,064,449 853,796 (42,802 ) 2,875,443 Furniture, fixtures and improvements 1,165,897 38,344 (95,016 ) 1,109,225 Totals 7,512,692 892,140 (223,304 ) 8,181,528 Less: accumulated depreciation (2,299,411 ) (758,408 ) 122,474 (2,935,345 ) Property and Equipment - net $ 5,213,281 $ 133,732 $ (100,830 ) $ 5,246,183 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Current Assets | Other current assets consisted of the following components: July 31, 2019 October 31, 2018 Deposits $ 131,020 $ 21,007 Other receivables 76,995 141,294 Alternative minium tax receivable 75,004 - VAT tax receivables 206,576 57,123 Total Other Current Assets $ 489,595 $ 219,424 |
Loans and Notes Payable (Tables
Loans and Notes Payable (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Loans and Notes Payable | July 31, 2019 October 31, 2018 Secured note payable to HSBC NA with interest payable on the 28th day of each month at 4.56% per annum. Our monthly repayment obligation under this loan is $43,777 (comprising both principal and interest repayment). $ 1,177,797 $ 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 1,177,797 2,024,239 Less: current portion (481,633 ) (964,695 ) Total Long Term Loans and Notes Payable $ 696,164 $ 1,059,544 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
NET INCOME PER SHARE: | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Fiscal Period July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Numerator: Net Income (Loss) $ 1,775,687 $ 1,997,610 $ 4,988,194 $ 1,752,346 Denominator: Basic weighted average common shares outstanding 10,679,876 10,415,416 10,670,642 9,976,917 Conversion of Series C Preferred Stock - 200,000 - 200,000 Diluted outstanding shares 10,679,876 10,615,416 10,670,642 10,176,917 Earnings from continuing operations Basic $ 0.17 $ 0.19 $ 0.47 $ 0.18 Diluted $ 0.17 $ 0.19 $ 0.47 $ 0.17 |
Segment Analysis (Tables)
Segment Analysis (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
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 and nine months ended July 31, 2019 and 2018 respectively: Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2019 Revenues from External Customers $ 3,231,510 $ 3,436,988 $ - $ 6,668,498 Cost of Revenues 592,585 1,528,095 - 2,120,680 Gross Profit 2,638,925 1,908,893 - 4,547,818 Research & Development 503,540 32,991 95,159 631,690 Selling, General & Administrative 590,981 659,398 525,530 1,775,909 Total Operating Expenses 1,094,521 692,389 620,689 2,407,599 Income (Loss) from Operations 1,544,404 1,216,504 (620,689 ) 2,140,219 Other Income (Expense) Other Income 6,398 - - 6,398 Interest Expense (2,197 ) (2,150 ) (15,928 ) (20,275 ) Total Other Income (Expense) 4,201 (2,150 ) (15,928 ) (13,877 ) Net Income (Loss) before Income Taxes 1,548,605 1,214,354 (636,617 ) 2,126,342 Income Tax Benefit (Expense) Current Tax Benefit (Expense) (5,172 ) 4,460 674 (38 ) Deferred Tax (Expense) (47,768 ) (214,144 ) (88,705 ) (350,617 ) Total Income Tax (Expense) (52,940 ) (209,684 ) (88,031 ) (350,655 ) Net Income (Loss) $ 1,495,665 $ 1,004,670 $ (724,648 ) $ 1,775,687 Supplemental Disclosures Total Assets $ 18,200,970 $ 13,876,685 $ 1,266,254 $ 33,343,909 Total Liabilities $ 2,169,195 $ 870,492 $ 1,388,509 $ 4,428,196 Revenues from Intercompany Sales - eliminated from sales above $ 136,128 $ 75,729 $ 675,000 $ 886,857 Depreciation and Amortization $ 132,392 $ 63,724 $ 4,078 $ 200,194 (Sales) Purchases of Long-lived Assets $ (262,062 ) $ 5,937 $ 34,303 $ (221,822 ) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended July 31, 2018 Revenues from External Customers $ 3,926,491 $ 1,851,982 $ - $ 5,778,473 Cost of Revenues 650,669 933,531 - 1,584,200 Gross Profit 3,275,822 918,451 - 4,194,273 Research & Development 440,202 90,190 - 530,392 Selling, General & Administrative 723,155 566,692 350,995 1,640,842 Total Operating Expenses 1,163,357 656,882 350,995 2,171,234 Income (Loss) from Operations 2,112,465 261,569 (350,995 ) 2,023,039 Other Income (Expense) Other Income 3,941 31 - 3,972 Interest Expense (2,480 ) (15,802 ) (11,139 ) (29,421 ) Total Other Income (Expense) 1,461 (15,771 ) (11,139 ) (25,449 ) Net Income (Loss) before Income Taxes 2,113,926 245,798 (362,134 ) 1,997,590 Current Tax Benefit - - 20 20 Net Income (Loss) $ 2,113,926 $ 245,798 $ (362,114 ) $ 1,997,610 Supplemental Disclosures Total Assets $ 14,016,131 $ 11,378,558 $ 553,927 $ 25,948,616 Total Liabilities $ 865,138 $ 1,660,291 $ 1,891,374 $ 4,416,803 Revenues from Intercompany Sales - eliminated from sales above $ 44,180 $ 183,800 $ 675,000 $ 902,980 Depreciation and Amortization $ 137,426 $ 66,435 $ 5,728 $ 209,589 Purchases of Long-lived Assets $ 232,575 $ (6,122 ) $ 30,667 $ 257,120 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2019 Revenues from External Customers $ 9,481,229 $ 9,729,049 $ - $ 19,210,278 Cost of Revenues 1,798,800 4,605,926 - 6,404,726 Gross Profit 7,682,429 5,123,123 - 12,805,552 Research & Development 1,533,544 130,205 284,494 1,948,243 Selling, General & Administrative 2,089,442 1,864,503 1,137,921 5,091,866 Total Operating Expenses 3,622,986 1,994,708 1,422,415 7,040,109 Income (Loss) from Operations 4,059,443 3,128,415 (1,422,415 ) 5,765,443 Other Income (Expense) Other Income 65,467 - - 65,467 Interest (Expense) (8,063 ) (11,849 ) (49,771 ) (69,683 ) Total Other Income (Expense) 57,404 (11,849 ) (49,771 ) (4,216 ) Net Income (Loss) before Income Taxes 4,116,847 3,116,566 (1,472,186 ) 5,761,227 Income Tax Benefit (Expense) Current Tax Benefit 20,496 39,445 18,013 77,954 Deferred Tax (Expense) (199,073 ) (447,540 ) (204,374 ) (850,987 ) Total Income Tax (Expense) (178,577 ) (408,095 ) (186,361 ) (773,033 ) Net Income (Loss) $ 3,938,270 $ 2,708,471 $ (1,658,547 ) $ 4,988,194 Supplemental Disclosures Total Assets $ 18,200,970 $ 13,876,685 $ 1,266,254 $ 33,343,909 Total Liabilities $ 2,169,195 $ 870,492 $ 1,388,509 $ 4,428,196 Revenues from Intercompany Sales - eliminated from sales above $ 1,044,595 $ 304,658 $ 2,025,000 $ 3,374,253 Depreciation and Amortization $ 391,516 $ 191,402 $ 11,688 $ 594,606 Purchases of Long-lived Assets $ 1,803,206 $ 40,383 $ 34,303 $ 1,877,892 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Nine Months Ended July 31, 2018 Revenues from External Customers $ 8,142,724 $ 4,212,702 $ - $ 12,355,426 Cost of Revenues 1,298,022 2,173,143 - 3,471,165 Gross Profit 6,844,702 2,039,559 - 8,884,261 Research & Development 1,385,994 455,414 - 1,841,408 Selling, General & Administrative 2,150,168 1,813,357 1,208,704 5,172,229 Total Operating Expenses 3,536,162 2,268,771 1,208,704 7,013,637 Income (Loss) from Operations 3,308,540 (229,212 ) (1,208,704 ) 1,870,624 Other Income (Expense) Other Income 92,514 2,128 - 94,642 Interest Expense (9,289 ) (45,503 ) (158,118 ) (212,910 ) Total Other Income (Expense) 83,225 (43,375 ) (158,118 ) (118,268 ) Net Income (Loss) before Income Taxes 3,391,765 (272,587 ) (1,366,822 ) 1,752,356 Current Tax Benefit (Expense) (6,596 ) - 6,586 (10 ) Net Income (Loss) $ 3,385,169 $ (272,587 ) $ (1,360,236 ) $ 1,752,346 Supplemental Disclosures Total Assets $ 14,016,131 $ 11,378,558 $ 553,927 $ 25,948,616 Total Liabilities $ 865,138 $ 1,660,291 $ 1,891,374 $ 4,416,803 Revenues from Intercompany Sales - eliminated from sales above $ 831,352 $ 196,103 $ 2,025,000 $ 3,052,455 Depreciation and Amortization $ 374,076 $ 218,649 $ 12,920 $ 605,645 Purchases of Long-lived Assets $ 486,604 $ 43,839 $ 55,452 $ 585,895 |
Schedule of Disaggregate of Revenue from Contracts for Sale with Customers by Geographic Location | For the Three Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 493,261 $ - $ 493,261 Equipment Rentals 221,567 - 221,567 Software Sales - - - Engineering Parts - 2,259,717 2,259,717 Services 95,698 767,024 862,722 Europe Equipment Sales 418,557 3,235 421,792 Equipment Rentals 322,887 - 322,887 Software Sales 19,259 - 19,259 Engineering Parts - 347,459 347,459 Services 150,216 59,553 209,769 Australia/Asia Equipment Sales 648,640 - 648,640 Equipment Rentals 260,474 - 260,474 Software Sales 81,541 - 81,541 Services 204,273 - 204,273 Middle East & Africa Equipment Sales 290,386 - 290,386 Equipment Rentals - - - Software Sales 21,261 - 21,261 Services 3,490 - 3,490 Total Net Sales $ 3,231,510 $ 3,436,988 $ 6,668,498 For the Three Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 810,526 $ 3,026,741 $ 3,837,267 Europe 910,919 410,247 1,321,166 Australia/Asia 1,194,928 - 1,194,928 Middle East & Africa 315,137 - 315,137 Total Net Sales $ 3,231,510 $ 3,436,988 $ 6,668,498 For the Three Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 1,850,844 $ 3,235 $ 1,854,079 Equipment Rentals 804,928 - 804,928 Software Sales 122,061 - 122,061 Engineering Parts - 2,607,176 2,607,176 Services 453,677 826,577 1,280,254 Total Net Sales $ 3,231,510 $ 3,436,988 $ 6,668,498 For the Three Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 118,488 $ - $ 118,488 Equipment Rentals 323,763 - 323,763 Software Sales 18,625 - 18,625 Engineering Parts - 1,456,962 1,456,962 Services 134,870 7,496 142,366 Europe Equipment Sales 109,410 - 109,410 Equipment Rentals 737,126 - 737,126 Software Sales 29,256 - 29,256 Engineering Parts - 387,524 387,524 Services 323,022 - 323,022 Australia/Asia Equipment Sales 1,175,276 - 1,175,276 Equipment Rentals (3,245 ) - (3,245 ) Software Sales 211,193 - 211,193 Services 136,395 - 136,395 Middle East & Africa Equipment Sales 584,417 - 584,417 Equipment Rentals - - - Software Sales 14,223 - 14,223 Services 13,672 - 13,672 Total Net Sales $ 3,926,491 $ 1,851,982 $ 5,778,473 For the Three Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 595,746 $ 1,464,458 $ 2,060,204 Europe 1,198,814 387,524 1,586,338 Australia/Asia 1,519,619 - 1,519,619 Middle East & Africa 612,312 - 612,312 Total Net Sales $ 3,926,491 $ 1,851,982 $ 5,778,473 For the Three Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 1,987,591 $ - $ 1,987,591 Equipment Rentals 1,057,644 - 1,057,644 Software Sales 273,297 - 273,297 Engineering Parts - 1,844,486 1,844,486 Services 607,959 7,496 615,455 Total Net Sales $ 3,926,491 $ 1,851,982 $ 5,778,473 For the Nine Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 560,339 $ 57,545 $ 617,884 Equipment Rentals 446,594 - 446,594 Software Sales 7,250 - 7,250 Engineering Parts - 6,827,221 6,827,221 Services 915,837 1,646,694 2,562,531 Europe Equipment Sales 1,189,162 114,214 1,303,376 Equipment Rentals 974,394 - 974,394 Software Sales 167,903 - 167,903 Engineering Parts - 1,023,822 1,023,822 Services 628,235 59,553 687,788 Australia/Asia Equipment Sales 2,707,978 - 2,707,978 Equipment Rentals 518,392 - 518,392 Software Sales 283,419 - 283,419 Services 543,314 - 543,314 Middle East & Africa Equipment Sales 300,859 - 300,859 Equipment Rentals 36,130 - 36,130 Software Sales 58,826 - 58,826 Services 142,597 - 142,597 Total Net Sales $ 9,481,229 $ 9,729,049 $ 19,210,278 For the Nine Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 1,930,020 $ 8,531,460 $ 10,461,480 Europe 2,959,694 1,197,589 4,157,283 Australia/Asia 4,053,103 - 4,053,103 Middle East & Africa 538,412 - 538,412 Total Net Sales $ 9,481,229 $ 9,729,049 $ 19,210,278 For the Nine Months Ended July 31, 2019 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 4,758,338 $ 171,759 $ 4,930,097 Equipment Rentals 1,975,510 - 1,975,510 Software Sales 517,398 - 517,398 Engineering Parts - 7,851,043 7,851,043 Services 2,229,983 1,706,247 3,936,230 Total Net Sales $ 9,481,229 $ 9,729,049 $ 19,210,278 For the Nine Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 712,945 $ - $ 712,945 Equipment Rentals 457,690 - 457,690 Software Sales 52,145 - 52,145 Engineering Parts - 2,826,029 2,826,029 Services 730,453 95,082 825,535 Europe Equipment Sales 1,030,167 192,078 1,222,245 Equipment Rentals 1,065,417 - 1,065,417 Software Sales 176,657 - 176,657 Engineering Parts - 1,099,513 1,099,513 Services 611,154 - 611,154 Australia/Asia Equipment Sales 1,590,510 - 1,590,510 Equipment Rentals 69,019 - 69,019 Software Sales 369,167 - 369,167 Services 221,940 - 221,940 Middle East & Africa Equipment Sales 905,933 - 905,933 Equipment Rentals 11,444 - 11,444 Software Sales 75,519 - 75,519 Services 62,564 - 62,564 Total Net Sales $ 8,142,724 $ 4,212,702 $ 12,355,426 For the Nine Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 1,953,233 $ 2,921,111 $ 4,874,344 Europe 2,883,395 1,291,591 4,174,986 Australia/Asia 2,250,636 - 2,250,636 Middle East & Africa 1,055,460 - 1,055,460 Total Net Sales $ 8,142,724 $ 4,212,702 $ 12,355,426 For the Nine Months Ended July 31, 2018 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 4,239,555 $ 192,078 $ 4,431,633 Equipment Rentals 1,603,570 - 1,603,570 Software Sales 673,488 - 673,488 Engineering Parts - 3,925,542 3,925,542 Services 1,626,111 95,082 1,721,193 Total Net Sales $ 8,142,724 $ 4,212,702 $ 12,355,426 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Net Operating Loss Carryforwards | Such NOL carryforwards expire as follows: 2028 $ 2,707,158 2029 5,646,028 Total $ 8,353,186 |
Schedule of Components of Deferred Tax Assets | Components of deferred tax assets as of July 31, 2019 and October 31, 2018 are as follows: July 31, 2019 October 31, 2018 Net operating loss carry-forward benefit $ 903,182 $ 1,754,169 Net deferred tax asset $ 903,182 $ 1,754,169 |
Inventory - Components of Inven
Inventory - Components of Inventory (Details) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials and parts | $ 3,251,696 | $ 2,887,505 |
Work in progress | 603,343 | 472,204 |
Finished goods | 499,781 | 463,534 |
Total Inventory | $ 4,354,820 | $ 3,823,243 |
Fixed Assets - Schedule of Fix
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Property and Equipment - Totals | $ 9,213,925 | $ 8,181,528 | $ 7,512,692 |
Less: accumulated depreciation | (3,451,586) | (2,935,345) | (2,299,411) |
Property and Equipment - net | 5,762,339 | 5,246,183 | 5,213,281 |
Acquisitions [Member] | |||
Property and Equipment - Totals | 1,843,589 | 892,140 | |
Less: accumulated depreciation | (566,089) | (758,408) | |
Property and Equipment - net | 1,277,500 | 133,732 | |
Disposals [Member] | |||
Property and Equipment - Totals | (811,192) | (223,304) | |
Less: accumulated depreciation | 49,848 | 122,474 | |
Property and Equipment - net | (761,344) | (100,830) | |
Buildings [Member] | |||
Property and Equipment - Totals | 4,493,069 | 3,996,860 | 4,082,346 |
Buildings [Member] | Acquisitions [Member] | |||
Property and Equipment - Totals | 1,226,209 | ||
Buildings [Member] | Disposals [Member] | |||
Property and Equipment - Totals | (730,000) | (85,486) | |
Land [Member] | |||
Property and Equipment - Totals | 200,000 | 200,000 | 200,000 |
Land [Member] | Acquisitions [Member] | |||
Property and Equipment - Totals | |||
Land [Member] | Disposals [Member] | |||
Property and Equipment - Totals | |||
Office Machinery and Equipment [Member] | |||
Property and Equipment - Totals | 3,386,622 | 2,875,443 | 2,064,449 |
Office Machinery and Equipment [Member] | Acquisitions [Member] | |||
Property and Equipment - Totals | 592,371 | 853,796 | |
Office Machinery and Equipment [Member] | Disposals [Member] | |||
Property and Equipment - Totals | (81,192) | (42,802) | |
Furniture, Fixtures and Improvements [Member] | |||
Property and Equipment - Totals | 1,134,234 | 1,109,225 | $ 1,165,897 |
Furniture, Fixtures and Improvements [Member] | Acquisitions [Member] | |||
Property and Equipment - Totals | 25,009 | 38,344 | |
Furniture, Fixtures and Improvements [Member] | Disposals [Member] | |||
Property and Equipment - Totals | $ (95,016) |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 131,020 | $ 21,007 |
Other receivables | 76,995 | 141,294 |
Alternative minimum tax receivable | 75,004 | |
VAT tax receivables | 206,576 | 57,123 |
Total Other Current Assets | $ 489,595 | $ 219,424 |
Contracts in Progress (Details
Contracts in Progress (Details Narrative) - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Oct. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 4,313,610 | $ 3,013,116 |
Deferred revenue | 1,033,314 | 651,820 |
Billings in excess component of deferred revenue | $ 84,776 | 0 |
Product warrant description | Revenue received as part of sales of products via our Products Segment includes a provision for warranty or TLS. TLS offers the customer extended post-sales technical support along with software and hardware assurances. These post-sales obligations (warranty and TLS) are treated as deferred revenue and are amortized over the period when the contractual obligations subsist, which for warranty is 12 months and TLS varies between 36 and 60 months depending on the package purchased by the customer. | |
Component of deferred revenue | $ 948,538 | $ 651,820 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Percentage of sales from customers | 10.00% | 10.00% | |||
Accounts receivable from customer | $ 3,851,791 | $ 3,851,791 | $ 3,326,623 | ||
One Customer [Member] | |||||
Percentage of sales from customers | 10.00% | 10.00% | |||
Revenue [Member] | Customer Concentration Risk [Member] | |||||
Percentage of sales from customers | 32.00% | 28.00% | |||
Total net sales | $ 2,136,570 | $ 5,345,790 | |||
Revenue [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Percentage of sales from customers | 19.00% | 17.00% | |||
Total net sales | $ 1,113,389 | $ 2,138,815 | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||||
Percentage of sales from customers | 21.00% | ||||
Accounts receivable from customer | $ 820,642 | $ 820,642 |
Loans and Notes Payable - Sched
Loans and Notes Payable - Schedule of Loans and Notes Payable (Details) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Total | $ 1,177,797 | $ 2,024,239 |
Less: current portion | (481,633) | (964,695) |
Total Long Term Loans and Notes Payable | 696,164 | 1,059,544 |
Secured Debt [Member] | ||
Total | 1,177,797 | 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 ($) | 9 Months Ended | 12 Months Ended |
Jul. 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 NA with interest payable on the 28th day of each month at 4.56% per annum. | Secured note payable to HSBC NA with interest payable on the 28th day of each month at 4.56% per annum. |
Principal and interest payment | $ 43,777 | $ 43,777 |
Unsecured Debt [Member] | ||
Debt, interest rate | 4.50% | 4.50% |
Secured debenture, maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
NET INCOME PER SHARE: | ||||||||
Net Income (Loss) | $ 1,775,687 | $ 1,973,494 | $ 1,239,013 | $ 1,997,610 | $ (77,325) | $ (167,939) | $ 4,988,194 | $ 1,752,346 |
Basic weighted average common shares outstanding | 10,679,876 | 10,415,416 | 10,670,642 | 9,976,917 | ||||
Conversion of Series C Preferred Stock | 200,000 | 200,000 | ||||||
Diluted outstanding shares | 10,679,876 | 10,615,416 | 10,670,642 | 10,176,917 | ||||
Earnings from continuing operations, Basic | $ 0.17 | $ 0.19 | $ 0.47 | $ 0.18 | ||||
Earnings from continuing operations, Diluted | $ 0.17 | $ 0.19 | $ 0.47 | $ 0.17 |
Segment Analysis (Details Narra
Segment Analysis (Details Narrative) | 9 Months Ended |
Jul. 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 | 9 Months Ended | |||||||
Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Revenues from External Customers | $ 6,668,498 | $ 5,778,473 | $ 19,210,278 | $ 12,355,426 | |||||
Cost of Revenues | 2,120,680 | 1,584,200 | 6,404,726 | 3,471,165 | |||||
Gross Profit | 4,547,818 | 4,194,273 | 12,805,552 | 8,884,261 | |||||
Research & Development | 631,690 | 530,392 | 1,948,243 | 1,841,408 | |||||
Selling, General & Administrative | 1,775,909 | 1,640,842 | 5,091,866 | 5,172,229 | |||||
Total Operating Expenses | 2,407,599 | 2,171,234 | 7,040,109 | 7,013,637 | |||||
Income (Loss) from Operations | 2,140,219 | 2,023,039 | 5,765,443 | 1,870,624 | |||||
Other Income | 6,398 | 3,972 | 65,467 | 94,642 | |||||
Interest Expense | (20,275) | (29,421) | (69,683) | (212,910) | |||||
Total Other Income (Expense) | (13,877) | (25,449) | (4,216) | (118,268) | |||||
Net Income (Loss) before Income Taxes | 2,126,342 | 1,997,590 | 5,761,227 | 1,752,356 | |||||
Current Tax Benefit (Expense) | (38) | 20 | 77,954 | (10) | |||||
Deferred Tax (Expense) | (350,617) | (850,987) | |||||||
Total Income Tax (Expense) | (350,655) | 20 | (773,033) | (10) | |||||
Net Income (Loss) | 1,775,687 | $ 1,973,494 | $ 1,239,013 | 1,997,610 | $ (77,325) | $ (167,939) | 4,988,194 | 1,752,346 | |
Total Assets | 33,343,909 | 25,948,616 | 33,343,909 | 25,948,616 | $ 28,736,611 | ||||
Total Liabilities | 4,428,196 | 4,416,803 | 4,428,196 | 4,416,803 | $ 4,349,661 | ||||
Revenues from Intercompany Sales - eliminated from sales above | 886,857 | 902,980 | 3,374,253 | 3,052,455 | |||||
Depreciation and Amortization | 200,194 | 209,589 | 594,606 | 605,645 | |||||
(Sales) Purchases of Long-lived Assets | (221,822) | 257,120 | 1,843,589 | 442,041 | |||||
Marine Technology Business (Products) [Member] | |||||||||
Revenues from External Customers | 3,231,510 | 3,926,491 | 9,481,229 | 8,142,724 | |||||
Cost of Revenues | 592,585 | 650,669 | 1,798,800 | 1,298,022 | |||||
Gross Profit | 2,638,925 | 3,275,822 | 7,682,429 | 6,844,702 | |||||
Research & Development | 503,540 | 440,202 | 1,533,544 | 1,385,994 | |||||
Selling, General & Administrative | 590,981 | 723,155 | 2,089,442 | 2,150,168 | |||||
Total Operating Expenses | 1,094,521 | 1,163,357 | 3,622,986 | 3,536,162 | |||||
Income (Loss) from Operations | 1,544,404 | 2,112,465 | 4,059,443 | 3,308,540 | |||||
Other Income | 6,398 | 3,941 | 65,467 | 92,514 | |||||
Interest Expense | (2,197) | (2,480) | (8,063) | (9,289) | |||||
Total Other Income (Expense) | 4,201 | 1,461 | 57,404 | 83,225 | |||||
Net Income (Loss) before Income Taxes | 1,548,605 | 2,113,926 | 4,116,847 | 3,391,765 | |||||
Current Tax Benefit (Expense) | (5,172) | 20,496 | (6,596) | ||||||
Deferred Tax (Expense) | (47,768) | (199,073) | |||||||
Total Income Tax (Expense) | (52,940) | (178,577) | |||||||
Net Income (Loss) | 1,495,665 | 2,113,926 | 3,938,270 | 3,385,169 | |||||
Total Assets | 18,200,970 | 14,016,131 | 18,200,970 | 14,016,131 | |||||
Total Liabilities | 2,169,195 | 865,138 | 2,169,195 | 865,138 | |||||
Revenues from Intercompany Sales - eliminated from sales above | 136,128 | 44,180 | 1,044,595 | 831,352 | |||||
Depreciation and Amortization | 132,392 | 137,426 | 391,516 | 374,076 | |||||
(Sales) Purchases of Long-lived Assets | (262,062) | 232,575 | 1,803,206 | 486,604 | |||||
Marine Engineering Business (Services) [Member] | |||||||||
Revenues from External Customers | 3,436,988 | 1,851,982 | 9,729,049 | 4,212,702 | |||||
Cost of Revenues | 1,528,095 | 933,531 | 4,605,926 | 2,173,143 | |||||
Gross Profit | 1,908,893 | 918,451 | 5,123,123 | 2,039,559 | |||||
Research & Development | 32,991 | 90,190 | 130,205 | 455,414 | |||||
Selling, General & Administrative | 659,398 | 566,692 | 1,864,503 | 1,813,357 | |||||
Total Operating Expenses | 692,389 | 656,882 | 1,994,708 | 2,268,771 | |||||
Income (Loss) from Operations | 1,216,504 | 261,569 | 3,128,415 | (229,212) | |||||
Other Income | 31 | 2,128 | |||||||
Interest Expense | (2,150) | (15,802) | (11,849) | (45,503) | |||||
Total Other Income (Expense) | (2,150) | (15,771) | (11,849) | (43,375) | |||||
Net Income (Loss) before Income Taxes | 1,214,354 | 245,798 | 3,116,566 | (272,587) | |||||
Current Tax Benefit (Expense) | 4,460 | 39,445 | |||||||
Deferred Tax (Expense) | (214,144) | (447,540) | |||||||
Total Income Tax (Expense) | (209,684) | (408,095) | |||||||
Net Income (Loss) | 1,004,670 | 245,798 | 2,708,471 | (272,587) | |||||
Total Assets | 13,876,685 | 11,378,558 | 13,876,685 | 11,378,558 | |||||
Total Liabilities | 870,492 | 1,660,291 | 870,492 | 1,660,291 | |||||
Revenues from Intercompany Sales - eliminated from sales above | 75,729 | 183,800 | 304,658 | 196,103 | |||||
Depreciation and Amortization | 63,724 | 66,435 | 191,402 | 218,649 | |||||
(Sales) Purchases of Long-lived Assets | 5,937 | (6,122) | 40,383 | 43,839 | |||||
Overhead [Member] | |||||||||
Revenues from External Customers | |||||||||
Cost of Revenues | |||||||||
Gross Profit | |||||||||
Research & Development | 95,159 | 284,494 | |||||||
Selling, General & Administrative | 525,530 | 350,995 | 1,137,921 | 1,208,704 | |||||
Total Operating Expenses | 620,689 | 350,995 | 1,422,415 | 1,208,704 | |||||
Income (Loss) from Operations | (620,689) | (350,995) | (1,422,415) | (1,208,704) | |||||
Other Income | |||||||||
Interest Expense | (15,928) | (11,139) | (49,771) | (158,118) | |||||
Total Other Income (Expense) | (15,928) | (11,139) | (49,771) | (158,118) | |||||
Net Income (Loss) before Income Taxes | (636,617) | (362,134) | (1,472,186) | (1,366,822) | |||||
Current Tax Benefit (Expense) | 674 | 20 | 18,013 | 6,586 | |||||
Deferred Tax (Expense) | (88,705) | (204,374) | |||||||
Total Income Tax (Expense) | (88,031) | (186,361) | |||||||
Net Income (Loss) | (724,648) | (362,114) | (1,658,547) | (1,360,236) | |||||
Total Assets | 1,266,254 | 553,927 | 1,266,254 | 553,927 | |||||
Total Liabilities | 1,388,509 | 1,891,374 | 1,388,509 | 1,891,374 | |||||
Revenues from Intercompany Sales - eliminated from sales above | 675,000 | 675,000 | 2,025,000 | 2,025,000 | |||||
Depreciation and Amortization | 4,078 | 5,728 | 11,688 | 12,920 | |||||
(Sales) Purchases of Long-lived Assets | $ 34,303 | $ 30,667 | $ 34,303 | $ 55,452 |
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 | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Total Net Sales | $ 6,668,498 | $ 5,778,473 | $ 19,210,278 | $ 12,355,426 |
Equipment Sales [Member] | ||||
Total Net Sales | 1,854,079 | 1,987,591 | 4,930,097 | 4,431,633 |
Equipment Rentals [Member] | ||||
Total Net Sales | 122,061 | 1,057,644 | 1,975,510 | 1,603,570 |
Software Sales [Member] | ||||
Total Net Sales | 804,928 | 273,297 | 517,398 | 673,488 |
Engineering Parts [Member] | ||||
Total Net Sales | 2,607,176 | 1,844,486 | 7,851,043 | 3,925,542 |
Services [Member] | ||||
Total Net Sales | 1,280,254 | 615,455 | 3,936,230 | 1,721,193 |
Americas [Member] | ||||
Total Net Sales | 3,837,267 | 2,060,204 | 10,461,480 | 4,874,344 |
Americas [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 493,261 | 118,488 | 617,884 | 712,945 |
Americas [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 221,567 | 323,763 | 446,594 | 457,690 |
Americas [Member] | Software Sales [Member] | ||||
Total Net Sales | 18,625 | 7,250 | 52,145 | |
Americas [Member] | Engineering Parts [Member] | ||||
Total Net Sales | 2,259,717 | 1,456,962 | 6,827,221 | 2,826,029 |
Americas [Member] | Services [Member] | ||||
Total Net Sales | 862,722 | 142,366 | 2,562,531 | 825,535 |
Europe [Member] | ||||
Total Net Sales | 1,321,166 | 1,586,338 | 4,157,283 | 4,174,986 |
Europe [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 421,792 | 109,410 | 1,303,376 | 1,222,245 |
Europe [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 322,887 | 737,126 | 974,394 | 1,065,417 |
Europe [Member] | Software Sales [Member] | ||||
Total Net Sales | 19,259 | 29,256 | 167,903 | 176,657 |
Europe [Member] | Engineering Parts [Member] | ||||
Total Net Sales | 347,459 | 387,524 | 1,023,822 | 1,099,513 |
Europe [Member] | Services [Member] | ||||
Total Net Sales | 209,769 | 323,022 | 687,788 | 611,154 |
Australia/Asia [Member] | ||||
Total Net Sales | 1,194,928 | 1,519,619 | 2,250,636 | |
Australia/Asia [Member] | ||||
Total Net Sales | 4,053,103 | |||
Australia/Asia [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 648,640 | 1,175,276 | 2,707,978 | 1,590,510 |
Australia/Asia [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 260,474 | (3,245) | 518,392 | 69,019 |
Australia/Asia [Member] | Software Sales [Member] | ||||
Total Net Sales | 81,541 | 211,193 | 283,419 | 369,167 |
Australia/Asia [Member] | Services [Member] | ||||
Total Net Sales | 204,273 | 136,395 | 543,314 | 221,940 |
Middle East & Africa [Member] | ||||
Total Net Sales | 315,137 | 612,312 | 538,412 | 1,055,460 |
Middle East & Africa [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 290,386 | 584,417 | 300,859 | 905,933 |
Middle East & Africa [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 36,130 | 11,444 | ||
Middle East & Africa [Member] | Software Sales [Member] | ||||
Total Net Sales | 21,261 | 14,223 | 58,826 | 75,519 |
Middle East & Africa [Member] | Services [Member] | ||||
Total Net Sales | 3,490 | 13,672 | 142,597 | 62,564 |
Marine Technology Business (Products) [Member] | ||||
Total Net Sales | 3,231,510 | 3,926,491 | 9,481,229 | 8,142,724 |
Marine Technology Business (Products) [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 1,850,844 | 1,987,591 | 4,758,338 | 4,239,555 |
Marine Technology Business (Products) [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 804,928 | 1,057,644 | 1,975,510 | 1,603,570 |
Marine Technology Business (Products) [Member] | Software Sales [Member] | ||||
Total Net Sales | 122,061 | 273,297 | 517,398 | 673,488 |
Marine Technology Business (Products) [Member] | Engineering Parts [Member] | ||||
Total Net Sales | ||||
Marine Technology Business (Products) [Member] | Services [Member] | ||||
Total Net Sales | 453,677 | 607,959 | 2,229,983 | 1,626,111 |
Marine Technology Business (Products) [Member] | Americas [Member] | ||||
Total Net Sales | 810,526 | 595,746 | 1,930,020 | 1,953,233 |
Marine Technology Business (Products) [Member] | Americas [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 493,261 | 118,488 | 560,339 | 712,945 |
Marine Technology Business (Products) [Member] | Americas [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 221,567 | 323,763 | 446,594 | 457,690 |
Marine Technology Business (Products) [Member] | Americas [Member] | Software Sales [Member] | ||||
Total Net Sales | 18,625 | 7,250 | 52,145 | |
Marine Technology Business (Products) [Member] | Americas [Member] | Engineering Parts [Member] | ||||
Total Net Sales | ||||
Marine Technology Business (Products) [Member] | Americas [Member] | Services [Member] | ||||
Total Net Sales | 95,698 | 134,870 | 915,837 | 730,453 |
Marine Technology Business (Products) [Member] | Europe [Member] | ||||
Total Net Sales | 910,919 | 1,198,814 | 2,959,694 | 2,883,395 |
Marine Technology Business (Products) [Member] | Europe [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 418,557 | 109,410 | 1,189,162 | 1,030,167 |
Marine Technology Business (Products) [Member] | Europe [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 322,887 | 737,126 | 974,394 | 1,065,417 |
Marine Technology Business (Products) [Member] | Europe [Member] | Software Sales [Member] | ||||
Total Net Sales | 19,259 | 29,256 | 167,903 | 176,657 |
Marine Technology Business (Products) [Member] | Europe [Member] | Engineering Parts [Member] | ||||
Total Net Sales | ||||
Marine Technology Business (Products) [Member] | Europe [Member] | Services [Member] | ||||
Total Net Sales | 150,216 | 323,022 | 628,235 | 611,154 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 648,640 | 1,175,276 | 1,590,510 | |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Services [Member] | ||||
Total Net Sales | 204,273 | 136,395 | 221,940 | |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | ||||
Total Net Sales | 1,194,928 | 1,519,619 | 4,053,103 | 2,250,636 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 2,707,978 | |||
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 260,474 | (3,245) | 518,392 | 69,019 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Software Sales [Member] | ||||
Total Net Sales | 81,541 | 211,193 | 283,419 | 369,167 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Services [Member] | ||||
Total Net Sales | 543,314 | |||
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | ||||
Total Net Sales | 315,137 | 612,312 | 538,412 | 1,055,460 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 290,386 | 584,417 | 300,859 | 905,933 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | 36,130 | 11,444 | ||
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Software Sales [Member] | ||||
Total Net Sales | 21,261 | 14,223 | 58,826 | 75,519 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Services [Member] | ||||
Total Net Sales | 3,490 | 13,672 | 142,597 | 62,564 |
Marine Engineering Business (Services) [Member] | ||||
Total Net Sales | 3,436,988 | 1,851,982 | 9,729,049 | 4,212,702 |
Marine Engineering Business (Services) [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 3,235 | 171,759 | 192,078 | |
Marine Engineering Business (Services) [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Software Sales [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Engineering Parts [Member] | ||||
Total Net Sales | 2,607,176 | 1,844,486 | 7,851,043 | 3,925,542 |
Marine Engineering Business (Services) [Member] | Services [Member] | ||||
Total Net Sales | 826,577 | 7,496 | 1,706,247 | 95,082 |
Marine Engineering Business (Services) [Member] | Americas [Member] | ||||
Total Net Sales | 3,026,741 | 1,464,458 | 8,531,460 | 2,921,111 |
Marine Engineering Business (Services) [Member] | Americas [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 57,545 | |||
Marine Engineering Business (Services) [Member] | Americas [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Americas [Member] | Software Sales [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Americas [Member] | Engineering Parts [Member] | ||||
Total Net Sales | 2,259,717 | 1,456,962 | 6,827,221 | 2,826,029 |
Marine Engineering Business (Services) [Member] | Americas [Member] | Services [Member] | ||||
Total Net Sales | 767,024 | 7,496 | 1,646,694 | 95,082 |
Marine Engineering Business (Services) [Member] | Europe [Member] | ||||
Total Net Sales | 410,247 | 387,524 | 1,197,589 | 1,291,591 |
Marine Engineering Business (Services) [Member] | Europe [Member] | Equipment Sales [Member] | ||||
Total Net Sales | 3,235 | 114,214 | 192,078 | |
Marine Engineering Business (Services) [Member] | Europe [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Europe [Member] | Software Sales [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Europe [Member] | Engineering Parts [Member] | ||||
Total Net Sales | 347,459 | 387,524 | 1,023,822 | 1,099,513 |
Marine Engineering Business (Services) [Member] | Europe [Member] | Services [Member] | ||||
Total Net Sales | 59,553 | 59,553 | ||
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | Services [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | Equipment Sales [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | Software Sales [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | Services [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Middle East & Africa [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Middle East & Africa [Member] | Equipment Sales [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Middle East & Africa [Member] | Equipment Rentals [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Middle East & Africa [Member] | Software Sales [Member] | ||||
Total Net Sales | ||||
Marine Engineering Business (Services) [Member] | Middle East & Africa [Member] | Services [Member] | ||||
Total Net Sales |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 8,353,186 | |
Net operating loss, expiration year | 20 years | |
Net operating loss carry-forward | $ 1,754,169 | $ 903,182 |
Alternative minimum tax refund | $ 7,840 | $ 77,754 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Operating Loss Carryforwards (Details) | Oct. 31, 2018USD ($) |
NOL carryforwards | $ 8,353,186 |
2028 [Member] | |
NOL carryforwards | 2,707,158 |
2029 [Member] | |
NOL carryforwards | $ 5,646,028 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets (Details) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry-forward benefit | $ 903,182 | $ 1,754,169 |
Net deferred tax asset | $ 903,182 | $ 1,754,169 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) | Jun. 24, 2019 | May 17, 2019 | Feb. 03, 2019 | Nov. 16, 2018 |
Number of shares issued during the period | 23,965 | |||
Share price | $ 4.40 | |||
Number of shares issued during the period, value | $ 105,446 | |||
Proceeds from disgorgement representing short swing profits | $ 166,514 | |||
Director [Member] | ||||
Number of shares issued during the period | 7,143 | |||
Share price | $ 5.92 | |||
Consultant [Member] | ||||
Share price | $ 14.59 | |||
Number of shares issued for services during the period | 20,000 |