Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2020 | Sep. 14, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Coda Octopus Group, Inc. | |
Entity Central Index Key | 0001334325 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2020 | |
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 Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,751,881 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2020 | Oct. 31, 2019 |
CURRENT ASSETS | ||
Cash | $ 13,017,208 | $ 11,721,683 |
Accounts Receivable, net | 3,559,273 | 4,431,971 |
Inventory | 8,877,474 | 5,350,514 |
Unbilled Receivables | 1,181,423 | 2,279,362 |
Other Current Assets | 260,313 | 298,187 |
Prepaid Expenses | 276,097 | 198,140 |
Total Current Assets | 27,171,788 | 24,279,857 |
FIXED ASSETS | ||
Property and Equipment, net | 6,158,556 | 5,986,812 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,630,486 | 3,612,891 |
Deferred Tax Asset | 307,215 | 631,684 |
Total Other Assets | 3,937,701 | 4,244,575 |
Total Assets | 37,268,045 | 34,511,244 |
CURRENT LIABILITIES | ||
Accounts Payable | 949,970 | 1,273,490 |
Accrued Expenses and Other Current Liabilities | 608,898 | 576,672 |
Notes Payable | 864,315 | 487,140 |
Deferred Revenue | 809,231 | 830,148 |
Total Current Liabilities | 3,232,414 | 3,167,450 |
LONG TERM LIABILITIES | ||
Deferred Revenue, less current portion | 183,448 | 143,587 |
Notes Payable, less current portion | 481,354 | 572,434 |
Total Long Term Liabilities | 664,802 | 716,021 |
Total Liabilities | 3,897,216 | 3,883,471 |
STOCKHOLDERS' EQUITY | ||
Common Stock, $.001 par value; 150,000,000 shares authorized, 10,751,881 shares issued and outstanding as of July 31, 2020 and 10,721,881 shares issued and outstanding as of October 31, 2019 | 10,753 | 10,723 |
Additional Paid-in Capital | 59,954,600 | 59,521,665 |
Accumulated Other Comprehensive Loss | (1,929,763) | (2,135,408) |
Accumulated Deficit | (24,664,761) | (26,769,207) |
Total Stockholders' Equity | 33,370,829 | 30,627,773 |
Total Liabilities and Stockholders' Equity | $ 37,268,045 | $ 34,511,244 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2020 | Oct. 31, 2019 |
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 | 10,751,881 | 10,721,881 |
Common stock, shares outstanding | 10,751,881 | 10,721,881 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Statement [Abstract] | ||||
Net Revenues | $ 5,396,036 | $ 6,668,498 | $ 15,366,233 | $ 19,210,278 |
Cost of Revenues | 1,776,868 | 2,120,680 | 5,547,211 | 6,404,726 |
Gross Profit | 3,619,168 | 4,547,818 | 9,819,022 | 12,805,552 |
OPERATING EXPENSES | ||||
Research & Development | 772,641 | 631,690 | 2,414,547 | 1,948,243 |
Selling, General & Administrative | 1,525,469 | 1,775,909 | 4,950,357 | 5,091,866 |
Total Operating Expenses | 2,298,110 | 2,407,599 | 7,364,904 | 7,040,109 |
INCOME FROM OPERATIONS | 1,321,058 | 2,140,219 | 2,454,118 | 5,765,443 |
OTHER INCOME (EXPENSE) | ||||
Other Income | 3,871 | 6,398 | 16,384 | 65,467 |
Interest Expense | (16,580) | (20,275) | (54,650) | (69,683) |
Total Other Expense | (12,709) | (13,877) | (38,266) | (4,216) |
NET INCOME BEFORE INCOME TAXES | 1,308,349 | 2,126,342 | 2,415,852 | 5,761,227 |
INCOME TAX BENEFIT (EXPENSE) | ||||
Current Tax Benefit (Expense) | 1,584 | (38) | 13,063 | 77,954 |
Deferred Tax Expense | (287,180) | (350,617) | (324,469) | (850,987) |
Total Income Tax Expense | (285,596) | (350,655) | (311,406) | (773,033) |
NET INCOME | $ 1,022,753 | $ 1,775,687 | $ 2,104,446 | $ 4,988,194 |
NET INCOME PER SHARE: | ||||
Basic | $ 0.10 | $ 0.17 | $ 0.20 | $ 0.47 |
Diluted | $ 0.09 | $ 0.17 | $ 0.19 | $ 0.47 |
WEIGHTED AVERAGE SHARES: | ||||
Basic | 10,739,354 | 10,679,876 | 10,727,705 | 10,670,642 |
Diluted | 11,291,354 | 10,679,876 | 11,279,705 | 10,670,642 |
NET INCOME | $ 1,022,753 | $ 1,775,687 | $ 2,104,446 | $ 4,988,194 |
Foreign Currency Translation Adjustment | 674,879 | (1,458,315) | 205,645 | (1,065,479) |
Total Other Comprehensive Income (Loss) | 674,879 | (1,458,315) | 205,645 | (1,065,479) |
COMPREHENSIVE INCOME | $ 1,697,632 | $ 317,372 | $ 2,310,091 | $ 3,922,715 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 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 (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 | ||||
Director stock based compensation | $ 8 | 42,281 | 42,289 | ||
Director stock based compensation, 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 | ||||
Consultant stock based compensation | $ 20 | 291,780 | 291,800 | ||
Consultant stock based compensation, shares | 20,000 | ||||
Foreign currency translation adjustment | (1,458,315) | (1,458,315) | |||
Disgorgement of stock sales | 166,514 | 166,514 | |||
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 | ||||
Balance at Oct. 31, 2019 | $ 10,723 | 59,521,665 | (2,135,408) | (26,769,207) | 30,627,773 |
Balance, shares at Oct. 31, 2019 | 10,721,881 | ||||
Foreign currency translation adjustment | 84,751 | 84,751 | |||
Net Income (Loss) | 1,346,773 | 1,346,773 | |||
Balance at Jan. 31, 2020 | $ 10,723 | 59,521,665 | (2,050,657) | (25,422,434) | 32,059,297 |
Balance, shares at Jan. 31, 2020 | 10,721,881 | ||||
Balance at Oct. 31, 2019 | $ 10,723 | 59,521,665 | (2,135,408) | (26,769,207) | 30,627,773 |
Balance, shares at Oct. 31, 2019 | 10,721,881 | ||||
Foreign currency translation adjustment | 205,645 | ||||
Net Income (Loss) | 2,104,446 | ||||
Balance at Jul. 31, 2020 | $ 10,753 | 59,954,600 | (1,929,763) | (24,664,761) | 33,370,829 |
Balance, shares at Jul. 31, 2020 | 10,751,881 | ||||
Balance at Jan. 31, 2020 | $ 10,723 | 59,521,665 | (2,050,657) | (25,422,434) | 32,059,297 |
Balance, shares at Jan. 31, 2020 | 10,721,881 | ||||
Stock based compensation | 88,299 | 88,299 | |||
Foreign currency translation adjustment | (553,985) | (553,985) | |||
Net Income (Loss) | (265,080) | (265,080) | |||
Balance at Apr. 30, 2020 | $ 10,723 | 59,609,964 | (2,604,642) | (25,687,514) | 31,328,531 |
Balance, shares at Apr. 30, 2020 | 10,721,881 | ||||
Stock issued | $ 30 | 169,470 | 169,500 | ||
Stock issued, shares | 30,000 | ||||
Stock based compensation | 175,166 | 175,166 | |||
Foreign currency translation adjustment | 674,879 | 674,879 | |||
Net Income (Loss) | 1,022,753 | 1,022,753 | |||
Balance at Jul. 31, 2020 | $ 10,753 | $ 59,954,600 | $ (1,929,763) | $ (24,664,761) | $ 33,370,829 |
Balance, shares at Jul. 31, 2020 | 10,751,881 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 2,104,446 | $ 4,988,194 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 643,335 | 594,606 |
Stock based compensation | 432,965 | 334,089 |
Deferred tax asset | 324,469 | 850,987 |
Loss on the sale of property and equipment | 36,344 | |
(Increase) decrease in operating assets: | ||
Accounts receivable | 872,698 | (525,168) |
Inventory | (3,526,960) | (531,577) |
Unbilled receivables | 1,097,939 | (1,300,494) |
Other current assets | 37,874 | (270,171) |
Prepaid expenses | (77,957) | (17,582) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | (291,294) | 543,483 |
Deferred revenue | 18,944 | 381,494 |
Net Cash Provided by Operating Activities | 1,636,459 | 5,084,205 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (782,350) | (1,843,589) |
Proceeds from sales of property and equipment | 725,000 | |
Purchases of other intangible assets | (50,324) | (34,303) |
Net Cash Used in Investing Activities | (832,674) | (1,152,892) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of notes | (362,776) | (846,442) |
Proceeds from notes | 648,871 | |
Disgorgement of stock sales | 166,514 | |
Issuance of common stock for cash | 105,445 | |
Net Cash Provided by (Used in) in Financing Activities | 286,095 | (574,483) |
EFFECT OF CURRENCY EXCHANGE RATE ON CHANGES IN CASH | 205,645 | (1,065,479) |
NET INCREASE IN CASH | 1,295,525 | 2,291,351 |
CASH AT THE BEGINNING OF THE PERIOD | 11,721,683 | 7,512,422 |
CASH AT THE END OF THE PERIOD | 13,017,208 | 9,803,773 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 53,041 | 69,499 |
Cash paid for taxes | $ 7,840 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 31, 2020 | |
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, 2019 and 2018 which included all information and notes necessary for such complete presentation as part of its annual report on Form 10-K filed on January 28, 2020, (“the “Form 10-K”). The results of operations for the interim period ended July 31, 2020 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, 2019, 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 presentation of the Company’s financial position as of July 31, 2020 and the results of operations, comprehensive income and cash flows for the interim periods ended July 31, 2020 and 2019. 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, 2020 | |
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. Our revenues are earned under formal contracts with our customers and are derived from both sales and rental of underwater technologies and equipment for real time 3D imaging, mapping, defense and survey applications and from the engineering services which we provide primarily to prime defense contractors. 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 additional variable consideration. Our sales do not include a right of return by the customer. With regard to our Marine Technology Business (“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, post-sales technical support 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 either our subscription package offering, or rental of our equipment is recognized when performance obligations are met, in particular, on a daily basis during the subscription or 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 distinct to the functionality of the software, we recognize revenue upon delivery of the software. With respect to revenues related to our Services Segment, 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 and revenue is recognized on these contracts based on material and the 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. On a quarterly basis, we examine all 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 incremental direct 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 over time, 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. Deferred Commissions Our incremental direct costs of obtaining a contract, which consists of sales commissions are deferred and amortized over the period of the contract performance. We classify deferred commissions as current or noncurrent based on the timing of when we expect to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets, and other assets, net, respectively, in our consolidated balance sheets. As of July 31, 2020 and October 31, 2019, we deferred commissions of $30,466 and $0, respectively. Amortization expense related to deferred commissions was $98,702 and $0 in the nine months ended July 31, 2020 and 2019, respectively. 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, 2020 | |
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, accrued expenses and a revolving 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, 2020 | |
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, 2020 | |
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, October 31, 2020 2019 Inventory Raw materials and parts $ 6,919,288 $ 4,379,260 Work in progress 1,320,236 517,354 Finished goods 637,950 453,900 Total Inventory $ 8,877,474 $ 5,350,514 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Jul. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 6 – FIXED ASSETS Fixed assets consist of the following components: July 31, October 31, 2020 2019 Buildings $ 5,150,109 $ 4,654,029 Land 200,000 200,000 Office machinery and equipment 2,031,564 1,954,938 Assets utilized in Customer Rentals 1,576,540 1,468,124 Furniture, fixtures and improvements 1,187,445 1,158,033 Totals 10,145,658 9,435,124 Less: accumulated depreciation (3,987,102 ) (3,448,312 ) Property and Equipment, Net $ 6,158,556 $ 5,986,812 |
Other Current Assets
Other Current Assets | 9 Months Ended |
Jul. 31, 2020 | |
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, October 31, 2020 2019 Other Current Assets Deposits $ 139,355 $ 42,932 Tax receivables 120,958 255,255 Total Other Current Assets $ 260,313 $ 298,187 |
Estimates
Estimates | 9 Months Ended |
Jul. 31, 2020 | |
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 and estimated earnings, and valuation of accounts receivable, valuation of fixed assets, valuation of inventory, valuation of deferred tax assets and the valuation of goodwill and other intangibles. |
Contracts in Progress
Contracts in Progress | 9 Months Ended |
Jul. 31, 2020 | |
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 $1,181,423 and $2,279,362 as of July 31, 2020 and October 31, 2019, respectively. Our deferred revenue of $992,679 and $973,735 as of July 31, 2020 and October 31, 2019, respectively, consists of billings in excess of costs and estimated earnings and revenues received as part of our subscription package offering, warranty or Through Life Support (“TLS”) obligations upon completing a sale. Revenue received as part of sales of products via our Products Segment includes a provision for subscription package offering, warranty or TLS. Subscription package offering is essentially a rental agreement for a fixed period of twelve months under which we supply full equipment suite including hardware, software and technical support during the subscription period. TLS offers the customer extended post-sales technical support along with software and hardware assurances. These post-sales obligations (subscription package offering, warranty and TLS) are treated as deferred revenue and are amortized over the period when the contractual obligations exist, which for subscription package offering and 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 in the amount of $519,588 and $497,819 as of July 31, 2020 and October 31, 2019, respectively. |
Concentrations
Concentrations | 9 Months Ended |
Jul. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 10 - CONCENTRATIONS Significant Customers During the three months ended July 31, 2020, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers was $2,064,274, or 38% of net revenues during the period. 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. During the nine months ended July 31, 2020, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenues from this customer was $3,735,550, or 24% 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. |
Notes Payable
Notes Payable | 9 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 11 – NOTES PAYABLE July 31, October 31, 2020 2019 Notes Payable 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). $ 696,798 $ 1,059,574 Unsecured Paycheck Protection Program loans which carries an interest rate of 1%. Principal payments begin on October 1, 2020 in the amount of $36,048. 648,871 - Total 1,345,669 1,059,574 Less: current portion (864,315 ) (487,140 ) Total Long Term Notes Payable $ 481,354 $ 572,434 The Company entered into a $4,000,000 revolving line of credit with HSBC NA on November 27, 2019, with the interest rate established as the applicable prime rate. The outstanding balance on the line of credit was $0 as of July 31, 2020. The credit line which is subject to renewal expires on November 26, 2020. The Company availed itself to the Paycheck Protection Program scheme (“PPP”) in the second and third quarter of this fiscal year. All the PPP amounts received have been utilized in accordance with the purpose and objective of the program. Where these conditions are met, i.e. utilization of the amounts for the designated purpose of the scheme the borrower is eligible for the forgiveness of these amounts. We believe we have met these qualifying conditions and would anticipate the forgiveness of these amounts in due course. We have submitted our application for the forgiveness. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jul. 31, 2020 | |
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 Company adopted ASU No. 2016-02 effective November 1, 2019. We own substantially all of our facilities. Accordingly, the adoption of ASU No. 2016-02 did not have a material impact on our interim consolidated financial statements. 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, 2020 | |
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 July 31, July 31, July 31, July 31, Fiscal Period 2020 2019 2020 2019 Numerator: Net Income $ 1,022,753 $ 1,775,687 $ 2,104,446 $ 4,988,194 Denominator: Basic weighted average common shares outstanding 10,739,354 10,679,876 10,727,705 10,670,642 Options issued 552,000 - 552,000 - Diluted outstanding shares 11,291,354 10,679,876 11,279,705 10,670,642 Earnings from continuing operations Basic $ 0.10 $ 0.17 $ 0.20 $ 0.47 Diluted $ 0.09 $ 0.17 $ 0.19 $ 0.47 |
Segment Analysis
Segment Analysis | 9 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Analysis | NOTE 14 – SEGMENT ANALYSIS Based on the fundamental differences in the types of offerings (services versus products sale/rental), we operate two distinct reportable segments which are managed separately. Coda Octopus Martech and Coda Octopus Colmek (“Services Segment” or “Marine Engineering Business”) are providing engineering services as sub-contractors mainly to prime defense contractors and Coda Octopus Products operations are comprised primarily of product sales, technology solutions sales, rental of equipment and/or software and associated services (“Products Segment” or “Marine Technology Business”). Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs (“Overhead”). 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 reported in our Form 10-K - Consolidated Financial Statements of October 31, 2019 which was filed with the Securities Exchange Commission on January 28, 2020. 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, 2020 and 2019, respectively. The Company’s reportable business segments sell their goods and services 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, 2020 and 2019 respectively: Marine Marine Overhead Total Three Months Ended July 31, 2020 Revenues from External Customers $ 3,053,070 $ 2,342,966 $ - $ 5,396,036 Cost of Revenues 653,117 1,123,751 - 1,776,868 Gross Profit 2,399,953 1,219,215 - 3,619,168 Research & Development 394,332 352,625 25,684 772,641 Selling, General & Administrative 496,772 515,547 513,150 1,525,469 Total Operating Expenses 891,104 868,172 538,834 2,298,110 Income (Loss) from Operations 1,508,849 351,043 (538,834 ) 1,321,058 Other (Expense) Income Other Income 3,745 126 - 3,871 Interest Expense (1,718 ) (4,672 ) (10,190 ) (16,580 ) Total Other Income (Expense) 2,027 (4,546 ) (10,190 ) (12,709 ) Net Income (Loss) before Income Taxes 1,510,876 346,497 (549,024 ) 1,308,349 Income Tax (Expense) Benefit Current Tax Benefit (Expense) 5,532 - (3,948 ) 1,584 Deferred Tax (Expense) Benefit (236,356 ) 15,155 (65,979 ) (287,180 ) Total Income Tax (Expense) Benefit (230,824 ) 15,155 (69,927 ) (285,596 ) Net Income (Loss) $ 1,280,052 $ 361,652 $ (618,951 ) $ 1,022,753 Supplemental Disclosures Total Assets $ 22,149,613 $ 14,439,917 $ 678,515 $ 37,268,045 Total Liabilities $ 1,737,007 $ 1,392,816 $ 767,393 $ 3,897,216 Revenues from Intercompany Sales - eliminated from sales above $ 498,312 $ 8,976 $ 1,350,000 $ 1,857,288 Depreciation and Amortization $ 261,975 $ 43,263 $ 4,677 $ 309,915 (Sales) Purchases of Long-lived Assets $ 317,892 $ 23,288 $ - $ 341,180 Marine Marine 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 Current Tax (Expense) Benefit (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 $ 888,857 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 Marine Overhead Total Nine Months Ended July 31, 2020 Revenues from External Customers $ 8,377,081 $ 6,989,152 $ - $ 15,366,233 Cost of Revenues 1,715,647 3,831,564 - 5,547,211 Gross Profit 6,661,434 3,157,588 - 9,819,022 Research & Development 1,393,757 830,008 190,782 2,414,547 Selling, General & Administrative 2,056,947 1,678,882 1,214,528 4,950,357 Total Operating Expenses 3,450,704 2,508,890 1,405,310 7,364,904 Income (Loss) from Operations 3,210,730 648,698 (1,405,310 ) 2,454,118 Other Income (Expense) Other Income 16,242 142 - 16,384 Interest Expense (7,345 ) (12,313 ) (34,992 ) (54,650 ) Total Other Income (Expense) 8,897 (12,171 ) (34,992 ) (38,266 ) Net Income (Loss) before Income Taxes 3,219,627 636,527 (1,440,302 ) 2,415,852 Income Tax Benefit (Expense) Current Tax Benefit (Expense) 24,968 - (11,905 ) 13,063 Deferred Tax (Expense) Benefit (315,849 ) 145,713 (154,333 ) (324,469 ) Total Income Tax (Expense) Benefit (290,881 ) 145,713 (166,238 ) (311,406 ) Net Income (Loss) $ 2,928,746 $ 782,240 $ (1,606,540 ) $ 2,104,446 Supplemental Disclosures Total Assets $ 22,149,613 $ 14,439,917 $ 678,515 $ 37,268,045 Total Liabilities $ 1,737,007 $ 1,392,816 $ 767,393 $ 3,897,216 Revenues from Intercompany Sales - eliminated from sales above $ 801,134 $ 109,505 $ 2,025,000 $ 2,935,639 Depreciation and Amortization $ 539,567 $ 89,688 $ 14,080 $ 643,335 Purchases of Long-lived Assets $ 758,619 $ 24,440 $ 48,519 $ 831,578 Marine Marine 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 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 For the Three Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 426,319 $ - $ 426,319 Equipment Rentals 37,334 - 37,334 Software Sales 28,385 - 28,385 Engineering Parts - 1,466,742 1,466,742 Services 579,855 286,920 866,775 Europe Equipment Sales 71,239 160,537 231,776 Equipment Rentals 81,766 - 81,766 Software Sales - - - Engineering Parts - 428,767 428,767 Services 87,122 - 87,122 Australia/Asia Equipment Sales 1,538,202 - 1,538,202 Equipment Rentals - - - Software Sales 62,155 - 62,155 Services 118,287 - 118,287 Middle East & Africa Equipment Sales - - - Equipment Rentals - - - Software Sales 22,406 - 22,406 Services - - - Total Net Sales $ 3,053,070 $ 2,342,966 $ 5,396,036 For the Three Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 1,071,893 $ 1,753,662 $ 2,825,555 Europe 240,127 589,304 829,431 Australia/Asia 1,718,644 - 1,718,644 Middle East & Africa 22,406 - 22,406 Total Net Sales $ 3,053,070 $ 2,342,966 $ 5,396,036 For the Three Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 2,058,166 $ 160,537 $ 2,218,703 Equipment Rentals 119,100 - 119,100 Software Sales 90,540 - 90,540 Engineering Parts - 1,895,509 1,895,509 Services 785,264 286,920 1,072,184 Total Net Sales $ 3,053,070 $ 2,342,966 $ 5,396,036 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 Nine Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 847,494 $ - $ 847,494 Equipment Rentals 118,672 - 118,672 Software Sales 35,635 - 35,635 Engineering Parts - 3,960,340 3,960,340 Services 1,125,062 939,336 2,064,398 Europe Equipment Sales 478,949 160,537 639,486 Equipment Rentals 427,249 - 427,249 Software Sales 109,681 - 109,681 Engineering Parts - 1,923,532 1,923,532 Services 363,255 5,407 368,662 Australia/Asia Equipment Sales 3,876,850 - 3,876,850 Equipment Rentals 401,151 - 401,151 Software Sales 190,745 - 190,745 Services 291,644 - 291,644 Middle East & Africa Equipment Sales 38,244 - 38,244 Equipment Rentals 592 - 592 Software Sales 22,406 - 22,406 Services 49,452 - 49,452 Total Net Sales $ 8,377,081 $ 6,989,152 $ 15,366,233 For the Nine Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 2,126,863 $ 4,899,676 $ 7,026,539 Europe 1,379,134 2,089,476 3,468,610 Australia/Asia 4,760,390 - 4,760,390 Middle East & Africa 110,694 - 110,694 Total Net Sales $ 8,377,081 $ 6,989,152 $ 15,366,233 For the Nine Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 5,241,537 $ 160,537 $ 5,402,074 Equipment Rentals 947,664 - 947,664 Software Sales 358,467 - 358,467 Engineering Parts - 5,883,872 5,883,872 Services 1,829,413 944,743 2,774,156 Total Net Sales $ 8,377,081 $ 6,989,152 $ 15,366,233 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 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15 – INCOME TAXES The Company’s effective tax rate for the three months ended July 31, 2020 and 2019 was 19.1% and 17.8%, respectively. The increase in the effective tax rate for the nine months ended July 31, 2020, as compared to July 31, 2019 resulted from a decrease in our AMT tax refund percentage from 5.2% in 2019 to 1.9% in 2020. As of July 31, 2020, we had U.S. federal net operating losses (“NOL”) carryforwards of $1,651,804, which expire in 2029. |
Reclassification of Prior Year
Reclassification of Prior Year Presentation | 9 Months Ended |
Jul. 31, 2020 | |
Equity [Abstract] | |
Reclassification of Prior Year Presentation | NOTE 16 RECLASSIFICATION OF PRIOR YEAR PRESENTATION Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Balance Sheet and Consolidated Statements of Cash Flows for the fiscal year ended October 31, 2019, to reclassify the Value Added Tax (VAT) receivable. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of 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, October 31, 2020 2019 Inventory Raw materials and parts $ 6,919,288 $ 4,379,260 Work in progress 1,320,236 517,354 Finished goods 637,950 453,900 Total Inventory $ 8,877,474 $ 5,350,514 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following components: July 31, October 31, 2020 2019 Buildings $ 5,150,109 $ 4,654,029 Land 200,000 200,000 Office machinery and equipment 2,031,564 1,954,938 Assets utilized in Customer Rentals 1,576,540 1,468,124 Furniture, fixtures and improvements 1,187,445 1,158,033 Totals 10,145,658 9,435,124 Less: accumulated depreciation (3,987,102 ) (3,448,312 ) Property and Equipment, Net $ 6,158,556 $ 5,986,812 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Current Assets | Other current assets consisted of the following components: July 31, October 31, 2020 2019 Other Current Assets Deposits $ 139,355 $ 42,932 Tax receivables 120,958 255,255 Total Other Current Assets $ 260,313 $ 298,187 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Note Payable | July 31, October 31, 2020 2019 Notes Payable 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). $ 696,798 $ 1,059,574 Unsecured Paycheck Protection Program loans which carries an interest rate of 1%. Principal payments begin on October 1, 2020 in the amount of $36,048. 648,871 - Total 1,345,669 1,059,574 Less: current portion (864,315 ) (487,140 ) Total Long Term Notes Payable $ 481,354 $ 572,434 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
NET INCOME PER SHARE: | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended July 31, July 31, July 31, July 31, Fiscal Period 2020 2019 2020 2019 Numerator: Net Income $ 1,022,753 $ 1,775,687 $ 2,104,446 $ 4,988,194 Denominator: Basic weighted average common shares outstanding 10,739,354 10,679,876 10,727,705 10,670,642 Options issued 552,000 - 552,000 - Diluted outstanding shares 11,291,354 10,679,876 11,279,705 10,670,642 Earnings from continuing operations Basic $ 0.10 $ 0.17 $ 0.20 $ 0.47 Diluted $ 0.09 $ 0.17 $ 0.19 $ 0.47 |
Segment Analysis (Tables)
Segment Analysis (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
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, 2020 and 2019 respectively: Marine Marine Overhead Total Three Months Ended July 31, 2020 Revenues from External Customers $ 3,053,070 $ 2,342,966 $ - $ 5,396,036 Cost of Revenues 653,117 1,123,751 - 1,776,868 Gross Profit 2,399,953 1,219,215 - 3,619,168 Research & Development 394,332 352,625 25,684 772,641 Selling, General & Administrative 496,772 515,547 513,150 1,525,469 Total Operating Expenses 891,104 868,172 538,834 2,298,110 Income (Loss) from Operations 1,508,849 351,043 (538,834 ) 1,321,058 Other (Expense) Income Other Income 3,745 126 - 3,871 Interest Expense (1,718 ) (4,672 ) (10,190 ) (16,580 ) Total Other Income (Expense) 2,027 (4,546 ) (10,190 ) (12,709 ) Net Income (Loss) before Income Taxes 1,510,876 346,497 (549,024 ) 1,308,349 Income Tax (Expense) Benefit Current Tax Benefit (Expense) 5,532 - (3,948 ) 1,584 Deferred Tax (Expense) Benefit (236,356 ) 15,155 (65,979 ) (287,180 ) Total Income Tax (Expense) Benefit (230,824 ) 15,155 (69,927 ) (285,596 ) Net Income (Loss) $ 1,280,052 $ 361,652 $ (618,951 ) $ 1,022,753 Supplemental Disclosures Total Assets $ 22,149,613 $ 14,439,917 $ 678,515 $ 37,268,045 Total Liabilities $ 1,737,007 $ 1,392,816 $ 767,393 $ 3,897,216 Revenues from Intercompany Sales - eliminated from sales above $ 498,312 $ 8,976 $ 1,350,000 $ 1,857,288 Depreciation and Amortization $ 261,975 $ 43,263 $ 4,677 $ 309,915 (Sales) Purchases of Long-lived Assets $ 317,892 $ 23,288 $ - $ 341,180 Marine Marine 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 Current Tax (Expense) Benefit (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 $ 888,857 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 Marine Overhead Total Nine Months Ended July 31, 2020 Revenues from External Customers $ 8,377,081 $ 6,989,152 $ - $ 15,366,233 Cost of Revenues 1,715,647 3,831,564 - 5,547,211 Gross Profit 6,661,434 3,157,588 - 9,819,022 Research & Development 1,393,757 830,008 190,782 2,414,547 Selling, General & Administrative 2,056,947 1,678,882 1,214,528 4,950,357 Total Operating Expenses 3,450,704 2,508,890 1,405,310 7,364,904 Income (Loss) from Operations 3,210,730 648,698 (1,405,310 ) 2,454,118 Other Income (Expense) Other Income 16,242 142 - 16,384 Interest Expense (7,345 ) (12,313 ) (34,992 ) (54,650 ) Total Other Income (Expense) 8,897 (12,171 ) (34,992 ) (38,266 ) Net Income (Loss) before Income Taxes 3,219,627 636,527 (1,440,302 ) 2,415,852 Income Tax Benefit (Expense) Current Tax Benefit (Expense) 24,968 - (11,905 ) 13,063 Deferred Tax (Expense) Benefit (315,849 ) 145,713 (154,333 ) (324,469 ) Total Income Tax (Expense) Benefit (290,881 ) 145,713 (166,238 ) (311,406 ) Net Income (Loss) $ 2,928,746 $ 782,240 $ (1,606,540 ) $ 2,104,446 Supplemental Disclosures Total Assets $ 22,149,613 $ 14,439,917 $ 678,515 $ 37,268,045 Total Liabilities $ 1,737,007 $ 1,392,816 $ 767,393 $ 3,897,216 Revenues from Intercompany Sales - eliminated from sales above $ 801,134 $ 109,505 $ 2,025,000 $ 2,935,639 Depreciation and Amortization $ 539,567 $ 89,688 $ 14,080 $ 643,335 Purchases of Long-lived Assets $ 758,619 $ 24,440 $ 48,519 $ 831,578 Marine Marine 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 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 |
Schedule of Disaggregate of Revenue from Contracts for Sale with Customers by Geographic Location | For the Three Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 426,319 $ - $ 426,319 Equipment Rentals 37,334 - 37,334 Software Sales 28,385 - 28,385 Engineering Parts - 1,466,742 1,466,742 Services 579,855 286,920 866,775 Europe Equipment Sales 71,239 160,537 231,776 Equipment Rentals 81,766 - 81,766 Software Sales - - - Engineering Parts - 428,767 428,767 Services 87,122 - 87,122 Australia/Asia Equipment Sales 1,538,202 - 1,538,202 Equipment Rentals - - - Software Sales 62,155 - 62,155 Services 118,287 - 118,287 Middle East & Africa Equipment Sales - - - Equipment Rentals - - - Software Sales 22,406 - 22,406 Services - - - Total Net Sales $ 3,053,070 $ 2,342,966 $ 5,396,036 For the Three Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 1,071,893 $ 1,753,662 $ 2,825,555 Europe 240,127 589,304 829,431 Australia/Asia 1,718,644 - 1,718,644 Middle East & Africa 22,406 - 22,406 Total Net Sales $ 3,053,070 $ 2,342,966 $ 5,396,036 For the Three Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 2,058,166 $ 160,537 $ 2,218,703 Equipment Rentals 119,100 - 119,100 Software Sales 90,540 - 90,540 Engineering Parts - 1,895,509 1,895,509 Services 785,264 286,920 1,072,184 Total Net Sales $ 3,053,070 $ 2,342,966 $ 5,396,036 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 Nine Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 847,494 $ - $ 847,494 Equipment Rentals 118,672 - 118,672 Software Sales 35,635 - 35,635 Engineering Parts - 3,960,340 3,960,340 Services 1,125,062 939,336 2,064,398 Europe Equipment Sales 478,949 160,537 639,486 Equipment Rentals 427,249 - 427,249 Software Sales 109,681 - 109,681 Engineering Parts - 1,923,532 1,923,532 Services 363,255 5,407 368,662 Australia/Asia Equipment Sales 3,876,850 - 3,876,850 Equipment Rentals 401,151 - 401,151 Software Sales 190,745 - 190,745 Services 291,644 - 291,644 Middle East & Africa Equipment Sales 38,244 - 38,244 Equipment Rentals 592 - 592 Software Sales 22,406 - 22,406 Services 49,452 - 49,452 Total Net Sales $ 8,377,081 $ 6,989,152 $ 15,366,233 For the Nine Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 2,126,863 $ 4,899,676 $ 7,026,539 Europe 1,379,134 2,089,476 3,468,610 Australia/Asia 4,760,390 - 4,760,390 Middle East & Africa 110,694 - 110,694 Total Net Sales $ 8,377,081 $ 6,989,152 $ 15,366,233 For the Nine Months Ended July 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 5,241,537 $ 160,537 $ 5,402,074 Equipment Rentals 947,664 - 947,664 Software Sales 358,467 - 358,467 Engineering Parts - 5,883,872 5,883,872 Services 1,829,413 944,743 2,774,156 Total Net Sales $ 8,377,081 $ 6,989,152 $ 15,366,233 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 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | |
Revenue Recognition [Abstract] | |||
Deferred commissions | $ 30,466 | $ 0 | |
Amortization expense related to deferred commissions | $ 98,702 | $ 0 |
Inventory - Schedule of Compone
Inventory - Schedule of Components of Inventory (Details) - USD ($) | Jul. 31, 2020 | Oct. 31, 2019 |
Inventory, Net [Abstract] | ||
Raw materials and parts | $ 6,919,288 | $ 4,379,260 |
Work in progress | 1,320,236 | 517,354 |
Finished goods | 637,950 | 453,900 |
Total Inventory | $ 8,877,474 | $ 5,350,514 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Jul. 31, 2020 | Oct. 31, 2019 |
Totals | $ 10,145,658 | $ 9,435,124 |
Less: accumulated depreciation | (3,987,102) | (3,448,312) |
Property and Equipment, Net | 6,158,556 | 5,986,812 |
Buildings [Member] | ||
Totals | 5,150,109 | 4,654,029 |
Land [Member] | ||
Totals | 200,000 | 200,000 |
Office Machinery and Equipment [Member] | ||
Totals | 2,031,564 | 1,954,938 |
Assets Utilized in Customer Rentals [Member] | ||
Totals | 1,576,540 | 1,468,124 |
Furniture, Fixtures and Improvements [Member] | ||
Totals | $ 1,187,445 | $ 1,158,033 |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) | Jul. 31, 2020 | Oct. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 139,355 | $ 42,932 |
Tax receivables | 120,958 | 255,255 |
Total Other Current Assets | $ 260,313 | $ 298,187 |
Contracts in Progress (Details
Contracts in Progress (Details Narrative) - USD ($) | Jul. 31, 2020 | Oct. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 1,181,423 | $ 2,279,362 |
Deferred revenue | 992,679 | 973,735 |
Component of deferred revenue | $ 519,588 | $ 497,819 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Two Customers [Member] | ||||
Percentage of sales from customers | 10.00% | |||
Two Customers [Member] | Revenue [Member] | ||||
Percentage of sales from customers | 38.00% | |||
Total net sales | $ 2,064,274 | |||
One Customer [Member] | ||||
Percentage of sales from customers | 10.00% | |||
One Customer [Member] | Revenue [Member] | ||||
Percentage of sales from customers | 32.00% | |||
Total net sales | $ 2,136,570 | |||
One Customer [Member] | ||||
Percentage of sales from customers | 10.00% | |||
One Customer [Member] | Revenue [Member] | ||||
Percentage of sales from customers | 24.00% | |||
Total net sales | $ 3,735,550 | |||
One Customer [Member] | ||||
Percentage of sales from customers | 10.00% | |||
One Customer [Member] | Revenue [Member] | ||||
Percentage of sales from customers | 28.00% | |||
Total net sales | $ 5,345,790 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - HSBC NA [Member] - USD ($) | Nov. 27, 2019 | Jul. 31, 2020 |
Revolving line of credit | $ 4,000,000 | $ 0 |
Credit line expires date | Nov. 26, 2020 |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Note Payable (Details) - USD ($) | Jul. 31, 2020 | Oct. 31, 2019 |
Total | $ 1,345,669 | $ 1,059,574 |
Less: current portion | (864,315) | (487,140) |
Total Long Term Notes Payable | 481,354 | 572,434 |
Secured Debt [Member] | HSBC NA [Member] | ||
Total | 696,798 | 1,059,574 |
Payroll Protection Program Loan [Member] | ||
Total | $ 648,871 |
Notes Payable - Schedule of N_2
Notes Payable - Schedule of Note Payable (Details) (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2020 | Oct. 31, 2019 | Oct. 01, 2020 | |
Secured Debt [Member] | HSBC NA [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 | |
Payroll Protection Program Loan [Member] | SBA [Member] | |||
Loan, annual interest rate | 1.00% | 1.00% | |
Payroll Protection Program Loan [Member] | SBA [Member] | Subsequent Event [Member] | |||
Debt instrument principal | $ 36,048 |
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, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
NET INCOME PER SHARE: | ||||||||
NET INCOME | $ 1,022,753 | $ (265,080) | $ 1,346,773 | $ 1,775,687 | $ 1,973,494 | $ 1,239,013 | $ 2,104,446 | $ 4,988,194 |
Denominator: Basic weighted average common shares outstanding | 10,739,354 | 10,679,876 | 10,727,705 | 10,670,642 | ||||
Denominator: Options issued | 552,000 | 552,000 | ||||||
Denominator: Diluted outstanding shares | 11,291,354 | 10,679,876 | 11,279,705 | 10,670,642 | ||||
Earnings from continuing operations Basic | $ 0.10 | $ 0.17 | $ 0.20 | $ 0.47 | ||||
Earnings from continuing operations Diluted | $ 0.09 | $ 0.17 | $ 0.19 | $ 0.47 |
Segment Analysis (Details Narra
Segment Analysis (Details Narrative) | 9 Months Ended |
Jul. 31, 2020Integer | |
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, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | |
Revenues from External Customers | $ 5,396,036 | $ 6,668,498 | $ 15,366,233 | $ 19,210,278 | |||||
Cost of Revenues | 1,776,868 | 2,120,680 | 5,547,211 | 6,404,726 | |||||
Gross Profit | 3,619,168 | 4,547,818 | 9,819,022 | 12,805,552 | |||||
Research & Development | 772,641 | 631,690 | 2,414,547 | 1,948,243 | |||||
Selling, General & Administrative | 1,525,469 | 1,775,909 | 4,950,357 | 5,091,866 | |||||
Total Operating Expenses | 2,298,110 | 2,407,599 | 7,364,904 | 7,040,109 | |||||
Income (Loss) from Operations | 1,321,058 | 2,140,219 | 2,454,118 | 5,765,443 | |||||
Other Income | 3,871 | 6,398 | 16,384 | 65,467 | |||||
Interest Expense | (16,580) | (20,275) | (54,650) | (69,683) | |||||
Total Other Income (Expense) | (12,709) | (13,877) | (38,266) | (4,216) | |||||
Net Income (Loss) before Income Taxes | 1,308,349 | 2,126,342 | 2,415,852 | 5,761,227 | |||||
Current Tax Benefit (Expense) | 1,584 | (38) | 13,063 | 77,954 | |||||
Deferred Tax (Expense) Benefit | (287,180) | (350,617) | (324,469) | (850,987) | |||||
Total Income Tax (Expense) Benefit | (285,596) | (350,655) | (311,406) | (773,033) | |||||
Net Income (Loss) | 1,022,753 | $ (265,080) | $ 1,346,773 | 1,775,687 | $ 1,973,494 | $ 1,239,013 | 2,104,446 | 4,988,194 | |
Total Assets | 37,268,045 | 33,343,909 | 37,268,045 | 33,343,909 | $ 34,511,244 | ||||
Total Liabilities | 3,897,216 | 4,428,196 | 3,897,216 | 4,428,196 | $ 3,883,471 | ||||
Revenues from Intercompany Sales - eliminated from sales above | 1,857,288 | 888,857 | 2,935,639 | 3,374,253 | |||||
Depreciation and Amortization | 309,915 | 200,194 | 643,335 | 594,606 | |||||
(Sales) Purchases of Long-lived Assets | 341,180 | (221,822) | 831,578 | 1,877,892 | |||||
Marine Technology Business (Products) [Member] | |||||||||
Revenues from External Customers | 3,053,070 | 3,231,510 | 8,377,081 | 9,481,229 | |||||
Cost of Revenues | 653,117 | 592,585 | 1,715,647 | 1,798,800 | |||||
Gross Profit | 2,399,953 | 2,638,925 | 6,661,434 | 7,682,429 | |||||
Research & Development | 394,332 | 503,540 | 1,393,757 | 1,533,544 | |||||
Selling, General & Administrative | 496,772 | 590,981 | 2,056,947 | 2,089,442 | |||||
Total Operating Expenses | 891,104 | 1,094,521 | 3,450,704 | 3,622,986 | |||||
Income (Loss) from Operations | 1,508,849 | 1,544,404 | 3,210,730 | 4,059,443 | |||||
Other Income | 3,745 | 6,398 | 16,242 | 65,467 | |||||
Interest Expense | (1,718) | (2,197) | (7,345) | (8,063) | |||||
Total Other Income (Expense) | 2,027 | 4,201 | 8,897 | 57,404 | |||||
Net Income (Loss) before Income Taxes | 1,510,876 | 1,548,605 | 3,219,627 | 4,116,847 | |||||
Current Tax Benefit (Expense) | 5,532 | (5,172) | 24,968 | 20,496 | |||||
Deferred Tax (Expense) Benefit | (236,356) | (47,768) | (315,849) | (199,073) | |||||
Total Income Tax (Expense) Benefit | (230,824) | (52,940) | (290,881) | (178,577) | |||||
Net Income (Loss) | 1,280,052 | 1,495,665 | 2,928,746 | 3,938,270 | |||||
Total Assets | 22,149,613 | 18,200,970 | 22,149,613 | 18,200,970 | |||||
Total Liabilities | 1,737,007 | 2,169,195 | 1,737,007 | 2,169,195 | |||||
Revenues from Intercompany Sales - eliminated from sales above | 498,312 | 136,128 | 801,134 | 1,044,595 | |||||
Depreciation and Amortization | 261,975 | 132,392 | 539,567 | 391,516 | |||||
(Sales) Purchases of Long-lived Assets | 317,892 | (262,062) | 758,619 | 1,803,206 | |||||
Marine Engineering Business (Services) [Member] | |||||||||
Revenues from External Customers | 2,342,966 | 3,436,988 | 6,989,152 | 9,729,049 | |||||
Cost of Revenues | 1,123,751 | 1,528,095 | 3,831,564 | 4,605,926 | |||||
Gross Profit | 1,219,215 | 1,908,893 | 3,157,588 | 5,123,123 | |||||
Research & Development | 352,625 | 32,991 | 830,008 | 130,205 | |||||
Selling, General & Administrative | 515,547 | 659,398 | 1,678,882 | 1,864,503 | |||||
Total Operating Expenses | 868,172 | 692,389 | 2,508,890 | 1,994,708 | |||||
Income (Loss) from Operations | 351,043 | 1,216,504 | 648,698 | 3,128,415 | |||||
Other Income | 126 | 142 | |||||||
Interest Expense | (4,672) | (2,150) | (12,313) | (11,849) | |||||
Total Other Income (Expense) | (4,546) | (2,150) | (12,171) | (11,849) | |||||
Net Income (Loss) before Income Taxes | 346,497 | 1,214,354 | 636,527 | 3,116,566 | |||||
Current Tax Benefit (Expense) | 4,460 | 39,445 | |||||||
Deferred Tax (Expense) Benefit | 15,155 | (214,144) | 145,713 | (447,540) | |||||
Total Income Tax (Expense) Benefit | 15,155 | (209,684) | 145,713 | (408,095) | |||||
Net Income (Loss) | 361,652 | 1,004,670 | 782,240 | 2,708,471 | |||||
Total Assets | 14,439,917 | 13,876,685 | 14,439,917 | 13,876,685 | |||||
Total Liabilities | 1,392,816 | 870,492 | 1,392,816 | 870,492 | |||||
Revenues from Intercompany Sales - eliminated from sales above | 8,976 | 75,729 | 109,505 | 304,658 | |||||
Depreciation and Amortization | 43,263 | 63,724 | 89,688 | 191,402 | |||||
(Sales) Purchases of Long-lived Assets | 23,288 | 5,937 | 24,440 | 40,383 | |||||
Overhead [Member] | |||||||||
Revenues from External Customers | |||||||||
Cost of Revenues | |||||||||
Gross Profit | |||||||||
Research & Development | 25,684 | 95,159 | 190,782 | 284,494 | |||||
Selling, General & Administrative | 513,150 | 525,530 | 1,214,528 | 1,137,921 | |||||
Total Operating Expenses | 538,834 | 620,689 | 1,405,310 | 1,422,415 | |||||
Income (Loss) from Operations | (538,834) | (620,689) | (1,405,310) | (1,422,415) | |||||
Other Income | |||||||||
Interest Expense | (10,190) | (15,928) | (34,992) | (49,771) | |||||
Total Other Income (Expense) | (10,190) | (15,928) | (34,992) | (49,771) | |||||
Net Income (Loss) before Income Taxes | (549,024) | (636,617) | (1,440,302) | (1,472,186) | |||||
Current Tax Benefit (Expense) | (3,948) | 674 | (11,905) | 18,013 | |||||
Deferred Tax (Expense) Benefit | (65,979) | (88,705) | (154,333) | (204,374) | |||||
Total Income Tax (Expense) Benefit | (69,927) | (88,031) | (166,238) | (186,361) | |||||
Net Income (Loss) | (618,951) | (724,648) | (1,606,540) | (1,658,547) | |||||
Total Assets | 678,515 | 1,266,254 | 678,515 | 1,266,254 | |||||
Total Liabilities | 767,393 | 1,388,509 | 767,393 | 1,388,509 | |||||
Revenues from Intercompany Sales - eliminated from sales above | 1,350,000 | 675,000 | 2,025,000 | 2,025,000 | |||||
Depreciation and Amortization | 4,677 | 4,078 | 14,080 | 11,688 | |||||
(Sales) Purchases of Long-lived Assets | $ 34,303 | $ 48,519 | $ 34,303 |
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, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Total net sales | $ 5,396,036 | $ 6,668,498 | $ 15,366,233 | $ 19,210,278 |
Equipment Sales [Member] | ||||
Total net sales | 2,218,703 | 1,854,079 | 5,402,074 | 4,930,097 |
Equipment Rentals [Member] | ||||
Total net sales | 119,100 | 804,928 | 947,664 | 1,975,510 |
Software Sales [Member] | ||||
Total net sales | 90,540 | 122,061 | 358,467 | 517,398 |
Engineering Parts [Member] | ||||
Total net sales | 1,895,509 | 2,607,176 | 5,883,872 | 7,851,043 |
Services [Member] | ||||
Total net sales | 1,072,184 | 1,280,254 | 2,774,156 | 3,936,230 |
Americas [Member] | ||||
Total net sales | 2,825,555 | 3,837,267 | 7,026,539 | 10,461,480 |
Americas [Member] | Equipment Sales [Member] | ||||
Total net sales | 426,319 | 493,261 | 847,494 | 617,884 |
Americas [Member] | Equipment Rentals [Member] | ||||
Total net sales | 37,334 | 221,567 | 118,672 | 446,594 |
Americas [Member] | Software Sales [Member] | ||||
Total net sales | 28,385 | 35,635 | 7,250 | |
Americas [Member] | Engineering Parts [Member] | ||||
Total net sales | 1,466,742 | 2,259,717 | 3,960,340 | 6,827,221 |
Americas [Member] | Services [Member] | ||||
Total net sales | 866,775 | 862,722 | 2,064,398 | 2,562,531 |
Europe [Member] | ||||
Total net sales | 829,431 | 1,321,166 | 3,468,610 | 4,157,283 |
Europe [Member] | Equipment Sales [Member] | ||||
Total net sales | 231,776 | 421,792 | 639,486 | 1,303,376 |
Europe [Member] | Equipment Rentals [Member] | ||||
Total net sales | 81,766 | 322,887 | 427,249 | 974,394 |
Europe [Member] | Software Sales [Member] | ||||
Total net sales | 19,259 | 109,681 | 167,903 | |
Europe [Member] | Engineering Parts [Member] | ||||
Total net sales | 428,767 | 347,459 | 1,923,532 | 1,023,822 |
Europe [Member] | Services [Member] | ||||
Total net sales | 87,122 | 209,769 | 368,662 | 687,788 |
Australia/Asia [Member] | ||||
Total net sales | 1,718,644 | 1,194,928 | 4,760,390 | 4,053,103 |
Australia/Asia [Member] | Equipment Sales [Member] | ||||
Total net sales | 1,538,202 | 648,640 | 3,876,850 | 2,707,978 |
Australia/Asia [Member] | Equipment Rentals [Member] | ||||
Total net sales | 260,474 | 401,151 | 518,392 | |
Australia/Asia [Member] | Software Sales [Member] | ||||
Total net sales | 62,155 | 81,541 | 190,745 | 283,419 |
Australia/Asia [Member] | Services [Member] | ||||
Total net sales | 118,287 | 204,273 | 291,644 | 543,314 |
Middle East & Africa [Member] | ||||
Total net sales | 22,406 | 315,137 | 110,694 | 538,412 |
Middle East & Africa [Member] | Equipment Sales [Member] | ||||
Total net sales | 290,286 | 38,244 | 300,859 | |
Middle East & Africa [Member] | Equipment Rentals [Member] | ||||
Total net sales | 592 | 36,130 | ||
Middle East & Africa [Member] | Software Sales [Member] | ||||
Total net sales | 22,406 | 21,261 | 22,406 | 58,826 |
Middle East & Africa [Member] | Services [Member] | ||||
Total net sales | 3,490 | 49,452 | 142,597 | |
Marine Technology Business (Products) [Member] | ||||
Total net sales | 3,053,070 | 3,231,510 | 8,377,081 | 9,481,229 |
Marine Technology Business (Products) [Member] | Equipment Sales [Member] | ||||
Total net sales | 2,058,166 | 1,850,844 | 5,241,537 | 4,758,338 |
Marine Technology Business (Products) [Member] | Equipment Rentals [Member] | ||||
Total net sales | 119,100 | 804,928 | 947,664 | 1,975,510 |
Marine Technology Business (Products) [Member] | Software Sales [Member] | ||||
Total net sales | 90,540 | 122,061 | 358,467 | 517,398 |
Marine Technology Business (Products) [Member] | Engineering Parts [Member] | ||||
Total net sales | ||||
Marine Technology Business (Products) [Member] | Services [Member] | ||||
Total net sales | 785,264 | 453,677 | 1,829,413 | 2,229,983 |
Marine Technology Business (Products) [Member] | Americas [Member] | ||||
Total net sales | 1,071,893 | 810,526 | 2,126,863 | 1,930,020 |
Marine Technology Business (Products) [Member] | Americas [Member] | Equipment Sales [Member] | ||||
Total net sales | 426,319 | 493,261 | 847,494 | 560,339 |
Marine Technology Business (Products) [Member] | Americas [Member] | Equipment Rentals [Member] | ||||
Total net sales | 37,334 | 221,567 | 118,672 | 446,594 |
Marine Technology Business (Products) [Member] | Americas [Member] | Software Sales [Member] | ||||
Total net sales | 28,385 | 35,635 | 7,250 | |
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 | 579,855 | 95,698 | 1,125,062 | 915,837 |
Marine Technology Business (Products) [Member] | Europe [Member] | ||||
Total net sales | 240,127 | 910,919 | 1,379,134 | 2,959,694 |
Marine Technology Business (Products) [Member] | Europe [Member] | Equipment Sales [Member] | ||||
Total net sales | 71,239 | 418,557 | 478,949 | 1,189,162 |
Marine Technology Business (Products) [Member] | Europe [Member] | Equipment Rentals [Member] | ||||
Total net sales | 81,766 | 322,887 | 427,249 | 974,394 |
Marine Technology Business (Products) [Member] | Europe [Member] | Software Sales [Member] | ||||
Total net sales | 19,259 | 109,681 | 167,903 | |
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 | 87,122 | 150,216 | 363,255 | 628,235 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | ||||
Total net sales | 1,718,644 | 1,194,928 | 4,760,390 | 4,053,103 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Equipment Sales [Member] | ||||
Total net sales | 1,538,202 | 648,640 | 3,876,850 | 2,707,978 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Equipment Rentals [Member] | ||||
Total net sales | 260,474 | 401,151 | 518,392 | |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Software Sales [Member] | ||||
Total net sales | 62,155 | 81,541 | 190,745 | 283,419 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Services [Member] | ||||
Total net sales | 118,287 | 204,273 | 291,644 | 543,314 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | ||||
Total net sales | 22,406 | 315,137 | 110,694 | 538,412 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Equipment Sales [Member] | ||||
Total net sales | 290,386 | 38,244 | 300,859 | |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Equipment Rentals [Member] | ||||
Total net sales | 592 | 36,130 | ||
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Software Sales [Member] | ||||
Total net sales | 22,406 | 21,261 | 22,406 | 58,826 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Services [Member] | ||||
Total net sales | 3,490 | 49,452 | 142,597 | |
Marine Engineering Business (Services) [Member] | ||||
Total net sales | 2,342,966 | 3,436,988 | 6,989,152 | 9,729,049 |
Marine Engineering Business (Services) [Member] | Equipment Sales [Member] | ||||
Total net sales | 160,537 | 3,235 | 160,537 | 171,759 |
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 | 1,895,509 | 2,607,176 | 5,883,872 | 7,851,043 |
Marine Engineering Business (Services) [Member] | Services [Member] | ||||
Total net sales | 286,920 | 825,677 | 944,743 | 1,706,247 |
Marine Engineering Business (Services) [Member] | Americas [Member] | ||||
Total net sales | 1,753,662 | 3,026,741 | 4,899,676 | 8,531,460 |
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 | 1,466,742 | 2,259,717 | 3,960,340 | 6,827,221 |
Marine Engineering Business (Services) [Member] | Americas [Member] | Services [Member] | ||||
Total net sales | 286,920 | 767,024 | 939,336 | 1,646,694 |
Marine Engineering Business (Services) [Member] | Europe [Member] | ||||
Total net sales | 589,304 | 410,247 | 2,089,476 | 1,197,589 |
Marine Engineering Business (Services) [Member] | Europe [Member] | Equipment Sales [Member] | ||||
Total net sales | 160,537 | 3,235 | 160,537 | 114,214 |
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 | 428,767 | 347,459 | 1,923,532 | 1,023,822 |
Marine Engineering Business (Services) [Member] | Europe [Member] | Services [Member] | ||||
Total net sales | 59,553 | 5,407 | 59,553 | |
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 ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 19.10% | 17.80% | ||
AMT tax refund percentage | 1.90% | 5.20% | ||
Net operating loss | $ 1,651,804 | $ 1,651,804 | ||
Net operating loss expiration, description | Expire in 2029 |