Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2021 | Mar. 16, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Coda Octopus Group, Inc. | |
Entity Central Index Key | 0001334325 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2021 | |
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 | Q1 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 16,081,875 | $ 15,134,289 |
Accounts Receivable, net | 1,870,637 | 2,014,660 |
Inventory | 9,995,719 | 9,142,273 |
Unbilled Receivables | 1,311,480 | 861,300 |
Prepaid Expenses | 300,009 | 289,204 |
Other Current Assets | 291,396 | 244,171 |
Total Current Assets | 29,851,116 | 27,685,897 |
FIXED ASSETS | ||
Property and Equipment, net | 6,114,540 | 6,059,900 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,719,773 | 3,731,452 |
Deferred Tax Asset | 670,093 | 561,902 |
Total Other Assets | 4,389,866 | 4,293,354 |
Total Assets | 40,355,522 | 38,039,151 |
CURRENT LIABILITIES | ||
Accounts Payable | 970,063 | 1,284,097 |
Accrued Expenses and Other Current Liabilities | 357,632 | 584,202 |
Notes Payable | 447,966 | 509,769 |
Deferred Revenue | 1,314,467 | 1,006,454 |
Total Current Liabilities | 3,090,128 | 3,384,522 |
LONG TERM LIABILITIES | ||
Deferred Revenue, less current portion | 203,648 | 195,022 |
Notes Payable, less current portion | 436,574 | 63,339 |
Total Long Term Liabilities | 640,222 | 258,361 |
Total Liabilities | 3,730,350 | 3,642,883 |
STOCKHOLDERS' EQUITY | ||
Common Stock, $.001 par value; 150,000,000 shares authorized, 10,751,881 shares issued and outstanding as of January 31, 2021 and October 31, 2020, respectively | 10,753 | 10,753 |
Additional Paid-in Capital | 60,306,862 | 60,132,415 |
Accumulated Other Comprehensive Loss | (1,395,665) | (2,321,278) |
Accumulated Deficit | (22,296,778) | (23,425,622) |
Total Stockholders' Equity | 36,625,172 | 34,396,268 |
Total Liabilities and Stockholders' Equity | $ 40,355,522 | $ 38,039,151 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2021 | Oct. 31, 2020 |
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 | 10,751,881 |
Common stock, shares outstanding | 10,751,881 | 10,751,881 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Statement [Abstract] | ||
Net Revenues | $ 5,050,459 | $ 6,680,979 |
Cost of Revenues | 1,735,537 | 2,406,539 |
Gross Profit | 3,314,922 | 4,274,440 |
OPERATING EXPENSES | ||
Research & Development | 583,139 | 928,265 |
Selling, General & Administrative | 1,813,366 | 1,891,678 |
Total Operating Expenses | 2,396,505 | 2,819,943 |
INCOME FROM OPERATIONS | 918,417 | 1,454,497 |
OTHER INCOME (EXPENSE) | ||
Other Income | 2,054 | 12,824 |
Funding from Paycheck Protection Program | 89,971 | |
Interest Expense | (14,514) | (19,614) |
Total Other Income (Expense) | 77,511 | (6,790) |
NET INCOME BEFORE INCOME TAXES | 995,928 | 1,447,707 |
INCOME TAX BENEFIT (EXPENSE) | ||
Current Tax Benefit (Expense) | 24,725 | (23,347) |
Deferred Tax Benefit (Expense) | 108,191 | (77,587) |
Total Income Tax Benefit (Expense) | 132,916 | (100,934) |
NET INCOME | $ 1,128,844 | $ 1,346,773 |
NET INCOME PER SHARE: | ||
Basic | $ 0.10 | $ 0.13 |
Diluted | $ 0.10 | $ 0.13 |
WEIGHTED AVERAGE SHARES: | ||
Basic | 10,751,881 | 10,721,881 |
Diluted | 11,308,881 | 10,721,881 |
NET INCOME | $ 1,128,844 | $ 1,346,773 |
Other Comprehensive Income | ||
Foreign Currency Translation Adjustment | 925,613 | 84,751 |
COMPREHENSIVE INCOME | $ 2,054,456 | $ 1,431,524 |
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, 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 | 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, 2020 | $ 10,753 | 60,132,415 | (2,321,278) | (23,425,622) | 34,396,268 |
Balance, shares at Oct. 31, 2020 | 10,751,881 | ||||
Foreign currency translation adjustment | 925,613 | 925,613 | |||
Employee stock based compensation | 174,447 | 174,447 | |||
Net Income | 1,128,844 | 1,128,844 | |||
Balance at Jan. 31, 2021 | $ 10,753 | $ 60,306,862 | $ (1,395,665) | $ (22,296,778) | $ 36,625,172 |
Balance, shares at Jan. 31, 2021 | 10,751,881 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,128,844 | $ 1,346,773 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 366,183 | 231,964 |
Stock based compensation | 174,447 | |
Deferred tax asset | (108,191) | 77,587 |
Funding from Paycheck Protection Program recognized as income | (89,971) | |
(Increase) decrease in operating assets: | ||
Accounts receivable | 144,023 | 304,483 |
Inventory | (853,446) | (911,098) |
Unbilled receivables | (450,180) | (211,543) |
Prepaid expenses | (10,805) | (71,580) |
Other current assets | (47,225) | 57,396 |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | (540,604) | 455,356 |
Deferred revenue | 316,639 | 204,802 |
Net Cash Provided by Operating Activities | 29,714 | 1,484,140 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (406,083) | (606,345) |
Purchases of other intangible assets | (3,061) | (36,814) |
Net Cash Used in Investing Activities | (409,144) | (643,159) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of notes | (125,142) | (119,456) |
Proceeds from Paycheck Protection Program | 526,545 | |
Net Cash Provided by (Used in) Financing Activities | 401,403 | (119,456) |
EFFECT OF CURRENCY EXCHANGE RATE ON CHANGES IN CASH | 925,613 | 84,751 |
NET INCREASE IN CASH | 947,586 | 806,276 |
CASH AT THE BEGINNING OF THE PERIOD | 15,134,289 | 11,721,683 |
CASH AT THE END OF THE PERIOD | 16,081,875 | 12,527,959 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 14,514 | 19,614 |
Cash paid for taxes |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jan. 31, 2021 | |
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, 2020 and 2019 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, 2021, (“the Form 10-K”). The results of operations for the interim period ended January 31, 2021 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, 2020, 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 January 31, 2021 and the results of operations, comprehensive income and cash flows for the interim periods ended January 31, 2021 and 2020. 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 | 3 Months Ended |
Jan. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 2 – REVENUE RECOGNITION The Company recognizes revenue in accordance with Financial Accounting Standards Board’s Topic 606, Revenue from Contracts with Customers 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 Business”), 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 offerings 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. In such instances these 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. Delivery is deemed when we issue the software activation code. With respect to revenues related to our Services Business, 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 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 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 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 January 31, 2021 and October 31, 2020, we had deferred commissions of $0 and $3,884, respectively. Amortization expense related to deferred commissions was $3,884 and $42,816 in the three months ended January 31, 2021 and 2020, respectively. Other Revenue Disclosures See Note 14 (“Segment Analysis”) for a breakdown of revenues from external customers and cost of those revenues between our two reporting segments: Product Segment and Services Segment including information on the split of revenues by geography and type. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments include cash, accounts receivable, accounts payable, accrued expenses and notes payable. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair values because of the short-term nature of these instruments. The aggregate carrying amount of the notes payable approximates fair value as they bear interest at a market interest rate based on their term and maturity. The fair value of the Company’s long-term debt approximates its carrying amount based on the fact that the Company believes it could obtain similar terms and conditions for similar debt. |
Foreign Currency Translation
Foreign Currency Translation | 3 Months Ended |
Jan. 31, 2021 | |
Foreign Currency [Abstract] | |
Foreign Currency Translation | NOTE 4 – FOREIGN CURRENCY TRANSLATION Assets and liabilities are translated at the prevailing exchange rates at the balance sheet dates. Related revenues and expenses are translated at weighted average exchange rates in effect during the reporting period. Stockholders’ equity, fixed assets and long-term investments are recorded at historical exchange rates. Resulting translation adjustments are recorded as a separate component in stockholders’ equity as part of accumulated other comprehensive income or (loss) as may be appropriate. Foreign currency transaction gains and losses are included in the consolidated statements of income and comprehensive income. |
Inventory
Inventory | 3 Months Ended |
Jan. 31, 2021 | |
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: January 31, October 31, Inventory 2021 2020 Raw materials and parts $ 7,793,487 $ 7,322,688 Work in progress 1,034,423 698,756 Finished goods 1,167,809 1,120,829 Total Inventory $ 9,995,719 $ 9,142,273 |
Fixed Assets
Fixed Assets | 3 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 6 – FIXED ASSETS Property and equipment, net consisted of the following as of: January 31, October 31, 2021 2020 Buildings $ 5,302,085 $ 5,103,324 Land 200,000 200,000 Office machinery and equipment 1,578,860 1,512,938 Rental assets 2,165,198 2,062,818 Furniture, fixtures and improvements 1,226,947 1,187,927 Totals 10,473,090 10,067,007 Less: accumulated depreciation (4,358,550 ) (4,007,107 ) Total Property and Equipment, net $ 6,114,540 $ 6,059,900 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Jan. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | NOTE 7 – OTHER CURRENT ASSETS Other current assets consisted of the following at: January 31, October 31, 2021 2020 Deposits $ 216,147 $ 112,984 Tax receivables 75,249 131,187 Total Other Current Assets $ 291,396 $ 244,171 |
Estimates
Estimates | 3 Months Ended |
Jan. 31, 2021 | |
Estimates | |
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, valuation of stock compensation, valuation of deferred tax assets, evaluation of uncertain tax positions, and the valuation of goodwill and other intangibles. |
Contracts in Progress
Contracts in Progress | 3 Months Ended |
Jan. 31, 2021 | |
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 balance sheet. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $1,311,480 and $861,300 as of January 31, 2021 and October 31, 2020, respectively. Our current Deferred Revenue of $1,314,467 and $1,006,454 as of January 31, 2021 and October 31, 2020, respectively, consists of billings in excess of costs and revenues received as part of our warranty obligations upon completing a sale, as elaborated further in the last paragraph of this note. Revenue received as part of sales of equipment includes a provision for warranty and is treated as deferred revenue, along with extended warranty sales and through life support (TLS), which may be purchased by customers. These amounts are amortized over the relevant warranty period (12 months is our standard warranty or 24, 36 or 60 months for extended warranty) from the date of sale. These amounts are stated on the consolidated balance sheets as a component of non-current Deferred Revenue and were $203,648 and $195,022 as of January 31, 2021 and October 31, 2020, respectively. |
Concentrations
Concentrations | 3 Months Ended |
Jan. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 10 – CONCENTRATIONS Significant Customers During the three months ended January 31, 2021, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers was $1,303,807, or 26% of net revenues during the year. Total accounts receivable from these customers at January 31, 2021 was $862,850 or 46% of accounts receivable. During the three months ended January 31, 2020, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers was $2,710,008, or 41% of net revenues during the year. Total accounts receivable from these customers at January 31, 2020 was $1,817,725 or 44% of accounts receivable. |
Notes Payable
Notes Payable | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 11 – NOTES PAYABLE January 31, October 31, 2021 2020 Secured note payable to HSBC NA with interest payable on the 28 th $ 447,966 $ 573,108 Unsecured Payroll Protection Program loan from the SBA that carries an interest rate of 1%. Principal payments begin on November 29, 2021 in the amount of $29,252. 436,574 - Total 884,540 573,108 Less: current portion (447,966 ) (509,769 ) Total Long Term Note Payable $ 436,574 $ 63,339 The HSBC loan is secured by a blanket lien on all of the Company’s US subsidiaries. The foreign subsidiaries are each guarantors of the obligations undertaken in the loan agreement. During the three months ended January 31, 2021, the Company received $526,545 under the Payroll Protection Program, which was initially recorded as long-term debt. As the Company makes qualifying expenditures (as defined), the Company reduces long-term debt and records Other Income. During the three months ended January 31, 2021, the Company recorded $89,971 as Other Income related to the Payroll Protection Program. The remaining amount of Payroll Protection Program funds that had not yet been spent as of January 31, 2021 is $436,574. The Company anticipates using the full $526,545 for qualifying expenditures. The Company entered into a $4,000,000 revolving line of credit facility 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 October 31, 2020. This revolving credit line will expire on November 26, 2021 unless renewed by the bank. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 12 – RECENT ACCOUNTING PRONOUNCEMENTS There have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Jan. 31, 2021 | |
NET INCOME PER SHARE: | |
Earnings Per Common Share | NOTE 13 – EARNINGS PER COMMON SHARE Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2021 2020 Numerator: Net Income $ 1,128,844 $ 1,346,773 Denominator: Basic weighted average common shares outstanding 10,751,881 10,721,881 Options issued 557,000 - Diluted outstanding shares 11,308,881 10,721,881 Net income per share Basic $ 0.10 $ 0.13 Diluted $ 0.10 $ 0.13 |
Segment Analysis
Segment Analysis | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Analysis | NOTE 14 -SEGMENT ANALYSIS Based on the fundamental difference between the types of our offering, products versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Segment”) operations are comprised primarily of sale of underwater technology sonar solutions, products for underwater operations including hardware and software; and rental of solutions and products to the underwater market. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provides engineering services primarily as sub-contractors to prime defense contractors. 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. There are inter-segment sales disclosed in the tables below for informational purposes, but which have been eliminated in our financial statements. The following table summarizes segment asset and operating balances by reportable segment as of and for the three months ended January 31, 2021 and 2020, respectively. The Company’s reportable business segments sell their goods and services in four geographic locations: ● Americas ● Europe ● Australia/Asia ● Middle East/Africa Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2021 Revenues from External Customers $ 3,748,279 $ 1,302,180 $ - $ 5,050,459 Cost of Revenues 894,275 841,262 - 1,735,537 Gross Profit 2,854,004 460,918 - 3,314,922 Research & Development 441,744 141,395 - 583,139 Selling, General & Administrative 733,825 567,559 511,982 1,813,366 Total Operating Expenses 1,175,569 708,954 511,982 2,396,505 Income (Loss) from Operations 1,678,435 (248,036 ) (511,982 ) 918,417 Other Income (Expense) Other Income 2,036 18 - 2,054 Funding from Paycheck Protection Program - 89,971 - 89,971 Interest Expense (2,253 ) (5,151 ) (7,110 ) (14,514 ) Total Other Income (Expense) (217 ) 84,838 (7,110 ) 77,511 Net Income (Loss) before Income Taxes 1,678,218 (163,198 ) (519,092 ) 995,928 Income Tax Benefit (Expense) Current Tax Benefit 12,653 - 12,072 24,725 Deferred Tax Benefit (11,155 ) 152,086 (32,740 ) 108,191 Total Income Tax Benefit (Expense) 1,498 152,086 (20,668 ) 132,916 Net Income (Loss) $ 1,679,716 $ (11,112 ) $ (539,760 ) $ 1,128,844 Supplemental Disclosures Total Assets $ 24,767,757 $ 14,362,811 $ 1,224,954 $ 40,355,522 Total Liabilities $ 1,573,260 $ 1,436,624 $ 720,466 $ 3,730,350 Revenues from Intercompany Sales - eliminated from sales above $ 370,629 $ 49,201 $ 675,000 $ 1,094,830 Depreciation and Amortization $ 312,122 $ 47,645 $ 6,416 $ 366,183 Purchases of Long-lived Assets $ 399,975 $ 4,177 $ 4,992 $ 409,144 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months ended January 31, 2020 Revenues from External Customers $ 3,632,812 $ 3,048,167 $ - $ 6,680,979 Cost of Revenues 655,677 1,750,862 - 2,406,539 Gross Profit 2,977,135 1,297,305 - 4,274,440 Research & Development 556,729 206,438 165,098 928,265 Selling, General & Administrative 867,998 636,296 387,384 1,891,678 Total Operating Expenses 1,424,727 842,734 552,482 2,819,943 Income (Loss) from Operations 1,552,408 454,571 (552,482 ) 1,454,497 Other Income (Expense) Other Income 12,824 - - 12,824 Interest Expense (3,232 ) (3,682 ) (12,700 ) (19,614 ) Total Other Income (Expense) 9,592 (3,682 ) (12,700 ) (6,790 ) Net Income (Loss) before Income Taxes 1,562,000 450,889 (565,182 ) 1,447,707 Current Tax Benefit (Expense) 25,833 4,045 (53,225 ) (23,347 ) Deferred Tax Benefit (Expense) (78,139 ) (12,235 ) 12,787 (77,587 ) Total Income Tax Expense (52,306 ) (8,190 ) (40,438 ) (100,934 ) Net Income (Loss) $ 1,509,694 $ 442,699 $ (605,620 ) $ 1,346,773 Supplemental Disclosures Total Assets $ 20,821,310 $ 14,520,371 $ 1,141,789 $ 36,483,470 Total Liabilities $ 1,835,184 $ 1,315,378 $ 1,273,611 $ 4,424,173 Revenues from Intercompany Sales - eliminated from sales above $ 302,822 $ 100,529 $ 675,000 $ 1,078,351 Depreciation and Amortization $ 182,993 $ 43,680 $ 5,291 $ 231,964 Purchases of Long-lived Assets $ 599,601 $ 9,593 $ 33,965 $ 643,159 For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 252,625 $ - $ 252,625 Equipment Rentals 48,925 - 48,925 Software Sales - - - Engineering Parts 213,956 291,565 505,521 Services 33,772 224,876 258,648 Europe Equipment Sales 894,104 220,957 1,115,061 Equipment Rentals 153,109 - 153,109 Software Sales 38,086 - 38,086 Engineering Parts - 564,782 564,782 Services 39,813 - 39,813 Australia/Asia Equipment Sales 1,646,758 - 1,646,758 Equipment Rentals 132,329 - 132,329 Software Sales 187,136 - 187,136 Services 41,987 - 41,987 Middle East & Africa Equipment Sales - - - Equipment Rentals - - - Software Sales - - - Services 65,679 - 65,679 Total Net Sales $ 3,748,279 $ 1,302,180 $ 5,050,459 For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 549,278 $ 516,441 $ 1,065,719 Europe 1,125,112 785,739 1,910,851 Australia/Asia 2,008,210 - 2,008,210 Middle East & Africa 65,679 - 65,679 Total Net Sales $ 3,748,279 $ 1,302,180 $ 5,050,459 For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 2,793,487 $ 220,957 $ 3,014,444 Equipment Rentals 334,363 - 334,363 Software Sales 225,222 - 225,222 Engineering Parts 213,956 856,347 1,070,303 Services 181,251 224,876 406,127 Total Net Sales $ 3,748,279 $ 1,302,180 $ 5,050,459 For the Three Months Ended January 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 334,388 $ - $ 334,388 Equipment Rentals 45,069 - 45,069 Software Sales 7,250 - 7,250 Engineering Parts - 1,646,374 1,646,374 Services 154,625 489,531 644,156 Europe Equipment Sales 338,147 - 338,147 Equipment Rentals 52,644 - 52,644 Software Sales 102,526 - 102,526 Engineering Parts - 906,855 906,855 Services 125,700 5,407 131,107 Australia/Asia Equipment Sales 2,028,310 - 2,028,310 Equipment Rentals 225,932 - 225,932 Software Sales 119,999 - 119,999 Services 47,119 - 47,119 Middle East & Africa Equipment Sales 22,074 - 22,074 Equipment Rentals - - - Software Sales - - - Services 29,029 - 29,029 Total Net Sales $ 3,632,812 $ 3,048,167 $ 6,680,979 For the Three Months Ended January 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 541,332 $ 2,135,905 $ 2,677,237 Europe 619,017 912,262 1,531,279 Australia/Asia 2,421,360 - 2,421,360 Middle East & Africa 51,103 - 51,103 Total Net Sales $ 3,632,812 $ 3,048,167 $ 6,680,979 For the Three Months Ended January 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 2,722,919 $ - $ 2,722,919 Equipment Rentals 323,645 - 323,645 Software Sales 229,775 - 229,775 Engineering Parts - 2,553,229 2,553,229 Services 356,473 494,938 851,411 Total Net Sales $ 3,632,812 $ 3,048,167 $ 6,680,979 |
Payroll Protection Program
Payroll Protection Program | 3 Months Ended |
Jan. 31, 2021 | |
Payroll Protection Program | |
Payroll Protection Program | NOTE 15 – PAYROLL PROTECTION PROGRAM In January 2021, one of our US companies, received $526,545 under the second round of the US Government Payroll Protection Program (“Second Round PPP”) for payroll assistance during the Pandemic. The proceeds from the Second Round PPP will be used to offset US employees’ salaries during the Pandemic. In the Current Quarter the Company utilized $89,971 of the Second Round PPP to defray payroll expense. This amount is recorded in our accounts as “Other Income” and the remaining $436,574 (“PPP Balance”) is recorded as “Long Term Debt”. As we utilize PPP Balance for qualifying expenditures defined under the Program, we will recognize these as “Other Income” thus reducing the amount recorded in Long Term Debt since we expect when utilized for qualifying expenditures defined under the Program, the Second Round PPP will be forgiven. In the 2020 FY certain of our US companies, received $648,871 under the US Government Payroll Protection Program (“First Round PPP”). The proceeds from the First Round PPP were used to offset US employees’ salaries during the Pandemic. The amount received under the First Round PPP has now been forgiven under the Program. This amount is recorded in our accounts as “Other Income”. The companies received their First Round PPP loans in April and May of 2020. The companies applied for forgiveness of the loans in September 2020 and the loans were forgiven in November 2020. |
COVID-19
COVID-19 | 3 Months Ended |
Jan. 31, 2021 | |
Covid-19 | |
COVID-19 | NOTE 16 – COVID-19 The Company faces various risks related to the global outbreak of coronavirus disease (“COVID-19”). The Engineering Services Business is dependent on its workforce to deliver its products and services primarily to the U.S. and U.K. Governments. If significant portions of the Engineering Services Business’s workforce are unable to work effectively, or if the U.S. or U.K. Government and/or other customers’ operations are curtailed due to illness, quarantines, government actions, facility closures, or other restrictions in connection with the COVID-19 Pandemic, the Engineering Services Business’s operations is likely to be severely impacted. The Engineering Services Business may be unable to perform fully on its contracts and costs may increase as a result of the COVID-19 outbreak. These cost increases may not be fully recoverable either from our customers or under existing insurance policies. At this time, the Company’s management cannot predict with any precision the full extent of the impact which COVID-19 Pandemic will have on the Company, but management continues to mitigate where it can and monitor the situation, to assess further possible implications to operations, the supply chain, and customers. Further, the Pandemic may have a material adverse effect on the Company’s results of operations, financial position, and liquidity in fiscal year 2021. The Marine Technology Business is dependent on its workforce and/or distributors/resellers to sell and deliver its products and services. Developments such as social distancing, shelter -in- place directives and travel restrictions introduced by governments have impacted the Marine Products Business’s ability to deploy its workforce effectively. These same developments may affect the operations of the Company’s suppliers, customers and distributors/resellers, as their own workforces and operations are disrupted by efforts to curtail the spread of this virus. The Company, being a manufacturing company, in large part is unable to work remotely. The Company’s activities are performed in certain international locations that are also impacted by the COVID-19 outbreak. While expected to be temporary, these disruptions will negatively impact the Marine Technology Business’s sales, its ongoing development projects, its results of operations, financial condition, and liquidity in 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17 – INCOME TAXES The Company’s effective tax rate for the three months ended January 31, 2021 and 2020 was (11.8%) and 6.9%, respectively. The decrease in the effective tax rate for the three months ended January 31, 2021, as compared to January 31, 2020 resulted from the US companies having a taxable loss for the three months ended January 31, 2021 compared to a tax gain for the three months ended January 31, 2020. As of January 31, 2021, we had U.S. federal net operating losses (“NOL”) carryforwards of $1,600,016, which expire in 2029. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18 – SUBSEQUENT EVENT In February 2021, one of our US companies received $122,327 under the Second Round PPP for payroll expenses assistance during the Pandemic. The proceeds of the Second Round PPP received will be used to defray payroll expenses. |
Reclassification of Prior Year
Reclassification of Prior Year Presentation | 3 Months Ended |
Jan. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Reclassification of Prior Year Presentation | NOTE 19 - 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 previously reported consolidated financial statements. An adjustment has been made to the disclosures of the composition of property and equipment. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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: January 31, October 31, Inventory 2021 2020 Raw materials and parts $ 7,793,487 $ 7,322,688 Work in progress 1,034,423 698,756 Finished goods 1,167,809 1,120,829 Total Inventory $ 9,995,719 $ 9,142,273 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following as of: January 31, October 31, 2021 2020 Buildings $ 5,302,085 $ 5,103,324 Land 200,000 200,000 Office machinery and equipment 1,578,860 1,512,938 Rental assets 2,165,198 2,062,818 Furniture, fixtures and improvements 1,226,947 1,187,927 Totals 10,473,090 10,067,007 Less: accumulated depreciation (4,358,550 ) (4,007,107 ) Total Property and Equipment, net $ 6,114,540 $ 6,059,900 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Current Assets | Other current assets consisted of the following at: January 31, October 31, 2021 2020 Deposits $ 216,147 $ 112,984 Tax receivables 75,249 131,187 Total Other Current Assets $ 291,396 $ 244,171 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Note Payable | January 31, October 31, 2021 2020 Secured note payable to HSBC NA with interest payable on the 28 th $ 447,966 $ 573,108 Unsecured Payroll Protection Program loan from the SBA that carries an interest rate of 1%. Principal payments begin on November 29, 2021 in the amount of $29,252. 436,574 - Total 884,540 573,108 Less: current portion (447,966 ) (509,769 ) Total Long Term Note Payable $ 436,574 $ 63,339 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
NET INCOME PER SHARE: | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2021 2020 Numerator: Net Income $ 1,128,844 $ 1,346,773 Denominator: Basic weighted average common shares outstanding 10,751,881 10,721,881 Options issued 557,000 - Diluted outstanding shares 11,308,881 10,721,881 Net income per share Basic $ 0.10 $ 0.13 Diluted $ 0.10 $ 0.13 |
Segment Analysis (Tables)
Segment Analysis (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2021 Revenues from External Customers $ 3,748,279 $ 1,302,180 $ - $ 5,050,459 Cost of Revenues 894,275 841,262 - 1,735,537 Gross Profit 2,854,004 460,918 - 3,314,922 Research & Development 441,744 141,395 - 583,139 Selling, General & Administrative 733,825 567,559 511,982 1,813,366 Total Operating Expenses 1,175,569 708,954 511,982 2,396,505 Income (Loss) from Operations 1,678,435 (248,036 ) (511,982 ) 918,417 Other Income (Expense) Other Income 2,036 18 - 2,054 Funding from Paycheck Protection Program - 89,971 - 89,971 Interest Expense (2,253 ) (5,151 ) (7,110 ) (14,514 ) Total Other Income (Expense) (217 ) 84,838 (7,110 ) 77,511 Net Income (Loss) before Income Taxes 1,678,218 (163,198 ) (519,092 ) 995,928 Income Tax Benefit (Expense) Current Tax Benefit 12,653 - 12,072 24,725 Deferred Tax Benefit (11,155 ) 152,086 (32,740 ) 108,191 Total Income Tax Benefit (Expense) 1,498 152,086 (20,668 ) 132,916 Net Income (Loss) $ 1,679,716 $ (11,112 ) $ (539,760 ) $ 1,128,844 Supplemental Disclosures Total Assets $ 24,767,757 $ 14,362,811 $ 1,224,954 $ 40,355,522 Total Liabilities $ 1,573,260 $ 1,436,624 $ 720,466 $ 3,730,350 Revenues from Intercompany Sales - eliminated from sales above $ 370,629 $ 49,201 $ 675,000 $ 1,094,830 Depreciation and Amortization $ 312,122 $ 47,645 $ 6,416 $ 366,183 Purchases of Long-lived Assets $ 399,975 $ 4,177 $ 4,992 $ 409,144 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months ended January 31, 2020 Revenues from External Customers $ 3,632,812 $ 3,048,167 $ - $ 6,680,979 Cost of Revenues 655,677 1,750,862 - 2,406,539 Gross Profit 2,977,135 1,297,305 - 4,274,440 Research & Development 556,729 206,438 165,098 928,265 Selling, General & Administrative 867,998 636,296 387,384 1,891,678 Total Operating Expenses 1,424,727 842,734 552,482 2,819,943 Income (Loss) from Operations 1,552,408 454,571 (552,482 ) 1,454,497 Other Income (Expense) Other Income 12,824 - - 12,824 Interest Expense (3,232 ) (3,682 ) (12,700 ) (19,614 ) Total Other Income (Expense) 9,592 (3,682 ) (12,700 ) (6,790 ) Net Income (Loss) before Income Taxes 1,562,000 450,889 (565,182 ) 1,447,707 Current Tax Benefit (Expense) 25,833 4,045 (53,225 ) (23,347 ) Deferred Tax Benefit (Expense) (78,139 ) (12,235 ) 12,787 (77,587 ) Total Income Tax Expense (52,306 ) (8,190 ) (40,438 ) (100,934 ) Net Income (Loss) $ 1,509,694 $ 442,699 $ (605,620 ) $ 1,346,773 Supplemental Disclosures Total Assets $ 20,821,310 $ 14,520,371 $ 1,141,789 $ 36,483,470 Total Liabilities $ 1,835,184 $ 1,315,378 $ 1,273,611 $ 4,424,173 Revenues from Intercompany Sales - eliminated from sales above $ 302,822 $ 100,529 $ 675,000 $ 1,078,351 Depreciation and Amortization $ 182,993 $ 43,680 $ 5,291 $ 231,964 Purchases of Long-lived Assets $ 599,601 $ 9,593 $ 33,965 $ 643,159 |
Schedule of Disaggregate of Revenue from Contracts for Sale with Customers by Geographic Location | For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 252,625 $ - $ 252,625 Equipment Rentals 48,925 - 48,925 Software Sales - - - Engineering Parts 213,956 291,565 505,521 Services 33,772 224,876 258,648 Europe Equipment Sales 894,104 220,957 1,115,061 Equipment Rentals 153,109 - 153,109 Software Sales 38,086 - 38,086 Engineering Parts - 564,782 564,782 Services 39,813 - 39,813 Australia/Asia Equipment Sales 1,646,758 - 1,646,758 Equipment Rentals 132,329 - 132,329 Software Sales 187,136 - 187,136 Services 41,987 - 41,987 Middle East & Africa Equipment Sales - - - Equipment Rentals - - - Software Sales - - - Services 65,679 - 65,679 Total Net Sales $ 3,748,279 $ 1,302,180 $ 5,050,459 For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 549,278 $ 516,441 $ 1,065,719 Europe 1,125,112 785,739 1,910,851 Australia/Asia 2,008,210 - 2,008,210 Middle East & Africa 65,679 - 65,679 Total Net Sales $ 3,748,279 $ 1,302,180 $ 5,050,459 For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 2,793,487 $ 220,957 $ 3,014,444 Equipment Rentals 334,363 - 334,363 Software Sales 225,222 - 225,222 Engineering Parts 213,956 856,347 1,070,303 Services 181,251 224,876 406,127 Total Net Sales $ 3,748,279 $ 1,302,180 $ 5,050,459 For the Three Months Ended January 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Americas Equipment Sales $ 334,388 $ - $ 334,388 Equipment Rentals 45,069 - 45,069 Software Sales 7,250 - 7,250 Engineering Parts - 1,646,374 1,646,374 Services 154,625 489,531 644,156 Europe Equipment Sales 338,147 - 338,147 Equipment Rentals 52,644 - 52,644 Software Sales 102,526 - 102,526 Engineering Parts - 906,855 906,855 Services 125,700 5,407 131,107 Australia/Asia Equipment Sales 2,028,310 - 2,028,310 Equipment Rentals 225,932 - 225,932 Software Sales 119,999 - 119,999 Services 47,119 - 47,119 Middle East & Africa Equipment Sales 22,074 - 22,074 Equipment Rentals - - - Software Sales - - - Services 29,029 - 29,029 Total Net Sales $ 3,632,812 $ 3,048,167 $ 6,680,979 For the Three Months Ended January 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Geographic Area Americas $ 541,332 $ 2,135,905 $ 2,677,237 Europe 619,017 912,262 1,531,279 Australia/Asia 2,421,360 - 2,421,360 Middle East & Africa 51,103 - 51,103 Total Net Sales $ 3,632,812 $ 3,048,167 $ 6,680,979 For the Three Months Ended January 31, 2020 Marine Marine Technology Engineering Grand Business Business Total Total Net Sales by Product Line Equipment Sales $ 2,722,919 $ - $ 2,722,919 Equipment Rentals 323,645 - 323,645 Software Sales 229,775 - 229,775 Engineering Parts - 2,553,229 2,553,229 Services 356,473 494,938 851,411 Total Net Sales $ 3,632,812 $ 3,048,167 $ 6,680,979 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Revenue Recognition [Abstract] | |||
Deferred commissions | $ 0 | $ 3,884 | |
Amortization expense related to deferred commissions | $ 3,884 | $ 42,816 |
Inventory - Schedule of Compone
Inventory - Schedule of Components of Inventory (Details) - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
Inventory, Net [Abstract] | ||
Raw materials and parts | $ 7,793,487 | $ 7,322,688 |
Work in progress | 1,034,423 | 698,756 |
Finished goods | 1,167,809 | 1,120,829 |
Total Inventory | $ 9,995,719 | $ 9,142,273 |
Fixed Assets - Schedule of Prop
Fixed Assets - Schedule of Property and Equipment (Details) - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
Property, plant and equipment, gross | $ 10,473,090 | $ 10,067,007 |
Less: accumulated depreciation | (4,358,550) | (4,007,107) |
Total Property and Equipment, net | 6,114,540 | 6,059,900 |
Buildings [Member] | ||
Property, plant and equipment, gross | 5,302,085 | 5,103,324 |
Land [Member] | ||
Property, plant and equipment, gross | 200,000 | 200,000 |
Office Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 1,578,860 | 1,512,938 |
Rental Assets [Member] | ||
Property, plant and equipment, gross | 2,165,198 | 2,062,818 |
Furniture, Fixtures and Improvements [Member] | ||
Property, plant and equipment, gross | $ 1,226,947 | $ 1,187,927 |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 216,147 | $ 112,984 |
Tax receivables | 75,249 | 131,187 |
Total Other Current Assets | $ 291,396 | $ 244,171 |
Contracts in Progress (Details
Contracts in Progress (Details Narrative) - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 1,311,480 | $ 861,300 |
Current deferred Revenue | 1,314,467 | 1,006,454 |
Non-current deferred revenue | $ 203,648 | $ 195,022 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - Two Customer [Member] - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Percentage of sales from customers | 10.00% | 10.00% |
Revenue [Member] | ||
Percentage of sales from customers | 26.00% | 41.00% |
Revenue from customer | $ 1,303,807 | $ 2,710,008 |
Accounts Receivable [Member] | ||
Percentage of sales from customers | 46.00% | 44.00% |
Revenue from customer | $ 862,850 | $ 1,817,725 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Oct. 31, 2020 | Nov. 27, 2019 | |
Proceeds form payroll protection program | $ 526,545 | ||
Other Income related to Payroll Protection Program | 89,971 | ||
Remaining amount of payroll protection program funds | 436,574 | $ 63,339 | |
Amount of qualifying expenditures | $ 526,545 | ||
Line of credit outstanding, balance | $ 0 | ||
Renewal expired date | Nov. 26, 2021 | ||
HSBC [Member] | |||
Revolving line of credit facility | $ 4,000,000 |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Note Payable (Details) - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
Total | $ 884,540 | $ 573,108 |
Less: current portion | (447,966) | (509,769) |
Total Long Term Notes Payable | 436,574 | 63,339 |
Secured Note Payable [Member] | ||
Total | 447,966 | 573,108 |
Unsecured Payroll Protection Program Loan [Member] | ||
Total | $ 436,574 |
Notes Payable - Schedule of N_2
Notes Payable - Schedule of Note Payable (Details) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Jan. 31, 2021 | Oct. 31, 2020 | |
Secured Note Payable [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 |
Debt instrument, maturity date | Dec. 28, 2021 | Dec. 28, 2021 |
Unsecured Payroll Protection Program Loan [Member] | ||
Loan, annual interest rate | 1.00% | 1.00% |
Loan interest payment, description | Principal payments begin on November 29, 2021 | Principal payments begin on November 29, 2021 |
Principal payment | $ 29,252 | $ 29,252 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
NET INCOME PER SHARE: | ||
Net Income | $ 1,128,844 | $ 1,346,773 |
Denominator: Basic weighted average common shares outstanding | 10,751,881 | 10,721,881 |
Denominator: Options issued | 557,000 | |
Denominator: Diluted outstanding shares | 11,308,881 | 10,721,881 |
Net income per share, Basic | $ 0.10 | $ 0.13 |
Net income per share, Diluted | $ 0.10 | $ 0.13 |
Segment Analysis (Details Narra
Segment Analysis (Details Narrative) | 3 Months Ended |
Jan. 31, 2021Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Analysis - Schedule of
Segment Analysis - Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Revenues from External Customers | $ 5,050,459 | $ 6,680,979 | |
Cost of Revenues | 1,735,537 | 2,406,539 | |
Gross Profit | 3,314,922 | 4,274,440 | |
Research & Development | 583,139 | 928,265 | |
Selling, General & Administrative | 1,813,366 | 1,891,678 | |
Total Operating Expenses | 2,396,505 | 2,819,943 | |
Income (Loss) from Operations | 918,417 | 1,454,497 | |
Other Income | 2,054 | 12,824 | |
Funding from Paycheck Protection Program | 89,971 | ||
Interest Expense | (14,514) | (19,614) | |
Total Other Income (Expense) | 77,511 | (6,790) | |
Net Income (Loss) before Income Taxes | 995,928 | 1,447,707 | |
Current Tax Benefit (Expense) | 24,725 | (23,347) | |
Deferred Tax Benefit | 108,191 | (77,587) | |
Total Income Tax Benefit (Expense) | 132,916 | (100,934) | |
Net Income (Loss) | 1,128,844 | 1,346,773 | |
Total Assets | 40,355,522 | 36,483,470 | $ 38,039,151 |
Total Liabilities | 3,730,350 | 4,424,173 | $ 3,642,883 |
Revenues from Intercompany Sales - eliminated from sales above | 1,094,830 | 1,078,351 | |
Depreciation and Amortization | 366,183 | 231,964 | |
Purchases of Long-lived Assets | 409,144 | 643,159 | |
Marine Technology Business (Products) [Member] | |||
Revenues from External Customers | 3,748,279 | 3,632,812 | |
Cost of Revenues | 894,275 | 655,677 | |
Gross Profit | 2,854,004 | 2,977,135 | |
Research & Development | 441,744 | 556,729 | |
Selling, General & Administrative | 733,825 | 867,998 | |
Total Operating Expenses | 1,175,569 | 1,424,727 | |
Income (Loss) from Operations | 1,678,435 | 1,552,408 | |
Other Income | 2,036 | 12,824 | |
Funding from Paycheck Protection Program | |||
Interest Expense | (2,253) | (3,232) | |
Total Other Income (Expense) | (217) | 9,592 | |
Net Income (Loss) before Income Taxes | 1,678,218 | 1,562,000 | |
Current Tax Benefit (Expense) | 12,653 | 25,833 | |
Deferred Tax Benefit | (11,155) | (78,139) | |
Total Income Tax Benefit (Expense) | 1,498 | (52,306) | |
Net Income (Loss) | 1,679,716 | 1,509,694 | |
Total Assets | 24,767,757 | 20,821,310 | |
Total Liabilities | 1,573,260 | 1,835,184 | |
Revenues from Intercompany Sales - eliminated from sales above | 370,629 | 302,822 | |
Depreciation and Amortization | 312,122 | 182,993 | |
Purchases of Long-lived Assets | 399,975 | 599,601 | |
Marine Engineering Business (Services) [Member] | |||
Revenues from External Customers | 1,302,180 | 3,048,167 | |
Cost of Revenues | 841,262 | 1,750,862 | |
Gross Profit | 460,918 | 1,297,305 | |
Research & Development | 141,395 | 206,438 | |
Selling, General & Administrative | 567,559 | 636,296 | |
Total Operating Expenses | 708,954 | 842,734 | |
Income (Loss) from Operations | (248,036) | 454,571 | |
Other Income | 18 | ||
Funding from Paycheck Protection Program | 89,971 | ||
Interest Expense | (5,151) | (3,682) | |
Total Other Income (Expense) | 84,838 | (3,682) | |
Net Income (Loss) before Income Taxes | (163,198) | 450,889 | |
Current Tax Benefit (Expense) | 4,045 | ||
Deferred Tax Benefit | 152,086 | (12,235) | |
Total Income Tax Benefit (Expense) | 152,086 | (8,190) | |
Net Income (Loss) | (11,112) | 442,699 | |
Total Assets | 14,362,811 | 14,520,371 | |
Total Liabilities | 1,436,624 | 1,315,378 | |
Revenues from Intercompany Sales - eliminated from sales above | 49,201 | 100,529 | |
Depreciation and Amortization | 47,645 | 43,680 | |
Purchases of Long-lived Assets | 4,177 | 9,593 | |
Overhead [Member] | |||
Revenues from External Customers | |||
Cost of Revenues | |||
Gross Profit | |||
Research & Development | 165,098 | ||
Selling, General & Administrative | 511,982 | 387,384 | |
Total Operating Expenses | 511,982 | 552,482 | |
Income (Loss) from Operations | (511,982) | (552,482) | |
Other Income | |||
Funding from Paycheck Protection Program | |||
Interest Expense | (7,110) | (12,700) | |
Total Other Income (Expense) | (7,110) | (12,700) | |
Net Income (Loss) before Income Taxes | (519,092) | (565,182) | |
Current Tax Benefit (Expense) | 12,073 | (53,225) | |
Deferred Tax Benefit | (32,741) | 12,787 | |
Total Income Tax Benefit (Expense) | (20,668) | (40,438) | |
Net Income (Loss) | (539,760) | (605,620) | |
Total Assets | 1,224,954 | 1,141,789 | |
Total Liabilities | 720,466 | 1,273,611 | |
Revenues from Intercompany Sales - eliminated from sales above | 675,000 | 675,000 | |
Depreciation and Amortization | 6,416 | 5,291 | |
Purchases of Long-lived Assets | $ 4,992 | $ 33,965 |
Segment Analysis - Schedule o_2
Segment Analysis - Schedule of Disaggregate of Revenue from Contracts for Sale with Customers by Geographic Location (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Total net sales | $ 5,050,459 | $ 6,680,979 |
Equipment Sales [Member] | ||
Total net sales | 3,014,444 | 2,722,919 |
Equipment Rentals [Member] | ||
Total net sales | 334,363 | 323,645 |
Software Sales [Member] | ||
Total net sales | 225,222 | 229,775 |
Engineering Parts [Member] | ||
Total net sales | 1,070,303 | 2,553,229 |
Services [Member] | ||
Total net sales | 406,127 | 851,411 |
Americas [Member] | ||
Total net sales | 1,065,719 | 2,677,237 |
Americas [Member] | Equipment Sales [Member] | ||
Total net sales | 252,625 | 334,388 |
Americas [Member] | Equipment Rentals [Member] | ||
Total net sales | 48,925 | 45,069 |
Americas [Member] | Software Sales [Member] | ||
Total net sales | 7,250 | |
Americas [Member] | Engineering Parts [Member] | ||
Total net sales | 505,521 | 1,646,374 |
Americas [Member] | Services [Member] | ||
Total net sales | 258,648 | 644,156 |
Europe [Member] | ||
Total net sales | 1,910,851 | 1,531,279 |
Europe [Member] | Equipment Sales [Member] | ||
Total net sales | 1,115,061 | 338,147 |
Europe [Member] | Equipment Rentals [Member] | ||
Total net sales | 153,109 | 52,644 |
Europe [Member] | Software Sales [Member] | ||
Total net sales | 38,086 | 102,526 |
Europe [Member] | Engineering Parts [Member] | ||
Total net sales | 564,782 | 906,855 |
Europe [Member] | Services [Member] | ||
Total net sales | 39,813 | 131,107 |
Australia/Asia [Member] | ||
Total net sales | 2,008,210 | 2,421,360 |
Australia/Asia [Member] | Equipment Sales [Member] | ||
Total net sales | 1,646,758 | 2,028,310 |
Australia/Asia [Member] | Equipment Rentals [Member] | ||
Total net sales | 132,329 | 225,932 |
Australia/Asia [Member] | Software Sales [Member] | ||
Total net sales | 187,136 | 119,999 |
Australia/Asia [Member] | Services [Member] | ||
Total net sales | 41,987 | 47,119 |
Middle East & Africa [Member] | ||
Total net sales | 65,679 | 51,103 |
Middle East & Africa [Member] | Equipment Sales [Member] | ||
Total net sales | 22,074 | |
Middle East & Africa [Member] | Equipment Rentals [Member] | ||
Total net sales | ||
Middle East & Africa [Member] | Software Sales [Member] | ||
Total net sales | ||
Middle East & Africa [Member] | Services [Member] | ||
Total net sales | 65,679 | 29,029 |
Marine Technology Business (Products) [Member] | ||
Total net sales | 3,748,279 | 3,632,812 |
Marine Technology Business (Products) [Member] | Equipment Sales [Member] | ||
Total net sales | 2,793,487 | 2,722,919 |
Marine Technology Business (Products) [Member] | Equipment Rentals [Member] | ||
Total net sales | 334,363 | 323,645 |
Marine Technology Business (Products) [Member] | Software Sales [Member] | ||
Total net sales | 225,222 | 229,775 |
Marine Technology Business (Products) [Member] | Engineering Parts [Member] | ||
Total net sales | 213,956 | |
Marine Technology Business (Products) [Member] | Services [Member] | ||
Total net sales | 181,251 | 356,473 |
Marine Technology Business (Products) [Member] | Americas [Member] | ||
Total net sales | 549,278 | 541,332 |
Marine Technology Business (Products) [Member] | Americas [Member] | Equipment Sales [Member] | ||
Total net sales | 252,625 | 334,388 |
Marine Technology Business (Products) [Member] | Americas [Member] | Equipment Rentals [Member] | ||
Total net sales | 48,925 | 45,069 |
Marine Technology Business (Products) [Member] | Americas [Member] | Software Sales [Member] | ||
Total net sales | 7,250 | |
Marine Technology Business (Products) [Member] | Americas [Member] | Engineering Parts [Member] | ||
Total net sales | 213,956 | |
Marine Technology Business (Products) [Member] | Americas [Member] | Services [Member] | ||
Total net sales | 33,772 | 154,625 |
Marine Technology Business (Products) [Member] | Europe [Member] | ||
Total net sales | 1,125,112 | 619,017 |
Marine Technology Business (Products) [Member] | Europe [Member] | Equipment Sales [Member] | ||
Total net sales | 894,104 | 338,147 |
Marine Technology Business (Products) [Member] | Europe [Member] | Equipment Rentals [Member] | ||
Total net sales | 153,109 | 52,644 |
Marine Technology Business (Products) [Member] | Europe [Member] | Software Sales [Member] | ||
Total net sales | 38,086 | 102,526 |
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 | 39,813 | 125,700 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | ||
Total net sales | 2,008,210 | 2,421,360 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Equipment Sales [Member] | ||
Total net sales | 1,646,758 | 2,028,310 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Equipment Rentals [Member] | ||
Total net sales | 132,329 | 225,932 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Software Sales [Member] | ||
Total net sales | 187,136 | 119,999 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | Services [Member] | ||
Total net sales | 41,987 | 47,119 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | ||
Total net sales | 65,679 | 51,103 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Equipment Sales [Member] | ||
Total net sales | 22,074 | |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Equipment Rentals [Member] | ||
Total net sales | ||
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Software Sales [Member] | ||
Total net sales | ||
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | Services [Member] | ||
Total net sales | 65,679 | 29,029 |
Marine Engineering Business (Services) [Member] | ||
Total net sales | 1,302,180 | 3,048,167 |
Marine Engineering Business (Services) [Member] | Equipment Sales [Member] | ||
Total net sales | 220,957 | |
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 | 856,347 | 2,553,229 |
Marine Engineering Business (Services) [Member] | Services [Member] | ||
Total net sales | 224,876 | 494,938 |
Marine Engineering Business (Services) [Member] | Americas [Member] | ||
Total net sales | 516,441 | 2,135,905 |
Marine Engineering Business (Services) [Member] | Americas [Member] | Equipment Sales [Member] | ||
Total net sales | ||
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 | 291,565 | 1,646,374 |
Marine Engineering Business (Services) [Member] | Americas [Member] | Services [Member] | ||
Total net sales | 224,876 | 489,531 |
Marine Engineering Business (Services) [Member] | Europe [Member] | ||
Total net sales | 785,739 | 912,262 |
Marine Engineering Business (Services) [Member] | Europe [Member] | Equipment Sales [Member] | ||
Total net sales | 220,957 | |
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 | 564,782 | 906,855 |
Marine Engineering Business (Services) [Member] | Europe [Member] | Services [Member] | ||
Total net sales | 5,407 | |
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 |
Payroll Protection Program (Det
Payroll Protection Program (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Funding from Paycheck Protection Program | $ 89,971 | |||
Total Long Term Notes Payable | $ 436,574 | 436,574 | $ 63,339 | |
Second Round Payroll Protection Program [Member] | ||||
Proceeds from PPP loan | 526,545 | |||
Funding from Paycheck Protection Program | 89,971 | |||
Payroll Protection Program [Member] | ||||
Total Long Term Notes Payable | $ 436,574 | 436,574 | ||
First Round Payroll Protection Program [Member] | ||||
Funding from Paycheck Protection Program | $ 648,871 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (11.80%) | 6.90% |
Net operating loss | $ 1,600,016 | |
Operating loss expiration description | Expire in 2029 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Second Round Payroll Protection Program [Member] - USD ($) | 1 Months Ended | |
Feb. 28, 2021 | Jan. 31, 2021 | |
Proceeds from PPP loan | $ 526,545 | |
Subsequent Event [Member] | ||
Proceeds from PPP loan | $ 122,327 |