Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2021 | Jun. 10, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Coda Octopus Group, Inc. | |
Entity Central Index Key | 0001334325 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 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 | 10,832,195 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 16,591,308 | $ 15,134,289 |
Accounts Receivable, net | 3,100,403 | 2,014,660 |
Inventory | 10,568,094 | 9,142,273 |
Unbilled Receivables | 1,080,436 | 861,300 |
Prepaid Expenses | 359,478 | 289,204 |
Other Current Assets | 601,533 | 244,171 |
Total Current Assets | 32,301,252 | 27,685,897 |
FIXED ASSETS | ||
Property and Equipment, net | 6,038,224 | 6,059,900 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,752,453 | 3,731,452 |
Deferred Tax Asset | 629,037 | 561,902 |
Total Other Assets | 4,381,490 | 4,293,354 |
Total Assets | 42,720,966 | 38,039,151 |
CURRENT LIABILITIES | ||
Accounts Payable | 1,286,004 | 1,284,097 |
Accrued Expenses and Other Current Liabilities | 466,315 | 584,202 |
Notes Payable | 321,258 | 509,769 |
Deferred Revenue | 1,178,678 | 1,006,454 |
Total Current Liabilities | 3,252,255 | 3,384,522 |
LONG TERM LIABILITIES | ||
Deferred Revenue, less current portion | 201,737 | 195,022 |
Notes Payable, less current portion | 63,339 | |
Total Long Term Liabilities | 201,737 | 258,361 |
Total Liabilities | 3,453,992 | 3,642,883 |
STOCKHOLDERS' EQUITY | ||
Common Stock, $.001 par value; 150,000,000 shares authorized, 10,817,042 shares issued and outstanding as of April 30, 2021 and 10,751,881 shares issued and outstanding as of October 31, 2020, respectively | 10,818 | 10,753 |
Additional Paid-in Capital | 60,441,954 | 60,132,415 |
Accumulated Other Comprehensive Loss | (1,096,953) | (2,321,278) |
Accumulated Deficit | (20,088,845) | (23,425,622) |
Total Stockholders' Equity | 39,266,974 | 34,396,268 |
Total Liabilities and Stockholders' Equity | $ 42,720,966 | $ 38,039,151 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 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 | 10,817,042 | 10,751,881 |
Common stock, shares outstanding | 10,817,042 | 10,751,881 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Statement [Abstract] | ||||
Net Revenues | $ 5,373,076 | $ 3,289,218 | $ 10,423,535 | $ 9,970,197 |
Cost of Revenues | 1,623,472 | 1,363,804 | 3,359,009 | 3,770,343 |
Gross Profit | 3,749,604 | 1,925,414 | 7,064,526 | 6,199,854 |
OPERATING EXPENSES | ||||
Research & Development | 645,281 | 713,641 | 1,228,420 | 1,641,906 |
Selling, General & Administrative | 1,780,001 | 1,533,210 | 3,593,367 | 3,424,888 |
Total Operating Expenses | 2,425,282 | 2,246,851 | 4,821,787 | 5,066,794 |
INCOME (LOSS) FROM OPERATIONS | 1,324,322 | (321,437) | 2,242,739 | 1,133,060 |
OTHER INCOME (EXPENSE) | ||||
Other Income (Expense) | 69,445 | (311) | 71,499 | 12,513 |
Funding from Paycheck Protection Program | 558,901 | 648,872 | ||
Interest Expense | (13,641) | (18,456) | (28,155) | (38,070) |
Total Other Income (Expense) | 614,705 | (18,767) | 692,216 | (25,557) |
NET INCOME (LOSS) BEFORE INCOME TAXES | 1,939,027 | (340,204) | 2,934,955 | 1,107,503 |
INCOME TAX BENEFIT (EXPENSE) | ||||
Current Tax Benefit | 309,962 | 34,826 | 334,687 | 11,479 |
Deferred Tax (Expense) Benefit | (41,056) | 40,298 | 67,135 | (37,289) |
Total Income Tax Benefit (Expense) | 268,906 | 75,124 | 401,822 | (25,810) |
NET INCOME (LOSS) | $ 2,207,933 | $ (265,080) | $ 3,336,777 | $ 1,081,693 |
NET INCOME (LOSS) PER SHARE: | ||||
Basic | $ 0.20 | $ (0.02) | $ 0.31 | $ 0.10 |
Diluted | $ 0.20 | $ (0.02) | $ 0.30 | $ 0.10 |
WEIGHTED AVERAGE SHARES: | ||||
Basic | 10,772,315 | 10,721,881 | 10,763,652 | 10,721,881 |
Diluted | 11,191,315 | 11,276,881 | 11,182,652 | 11,276,881 |
NET INCOME (LOSS) | $ 2,207,933 | $ (265,080) | $ 3,336,777 | $ 1,081,693 |
Other Comprehensive Income | ||||
Foreign Currency Translation Adjustment | 298,712 | (553,985) | 1,224,325 | (469,234) |
COMPREHENSIVE INCOME (LOSS) | $ 2,506,645 | $ (819,065) | $ 4,561,101 | $ 612,459 |
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, 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 | (469,234) | ||||
Net Income | 1,081,693 | ||||
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 | ||||
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 | (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 | ||||
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 | ||||
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 | 1,224,325 | ||||
Net Income | 3,336,777 | ||||
Balance at Apr. 30, 2021 | $ 10,818 | 60,441,954 | (1,096,953) | (20,088,845) | 39,266,974 |
Balance, shares at Apr. 30, 2021 | 10,817,042 | ||||
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 | ||||
Foreign currency translation adjustment | 298,712 | 298,712 | |||
Employee stock based compensation | 135,157 | 135,157 | |||
Employee stock based compensation, shares | |||||
Stock issued for options exercised | $ 65 | (65) | |||
Stock issued for options exercised, shares | 65,161 | ||||
Net Income | 2,207,933 | 2,207,933 | |||
Balance at Apr. 30, 2021 | $ 10,818 | $ 60,441,954 | $ (1,096,953) | $ (20,088,845) | $ 39,266,974 |
Balance, shares at Apr. 30, 2021 | 10,817,042 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,336,777 | $ 1,081,693 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 599,864 | 333,420 |
Stock based compensation | 309,604 | 88,299 |
Deferred income taxes | (67,135) | 37,289 |
Funding from Paycheck Protection Program recognized as income | (648,872) | |
(Increase) decrease in operating assets: | ||
Accounts receivable | (1,085,743) | 1,281,854 |
Inventory | (1,425,821) | (2,161,444) |
Unbilled receivables | (219,136) | 257,866 |
Prepaid expenses | (115,307) | (219,326) |
Other current assets | (312,329) | 20,295 |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | (115,980) | (252,770) |
Deferred revenue | 178,939 | 1,293,302 |
Net Cash Provided by Operating Activities | 434,861 | 1,760,478 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (551,153) | (445,160) |
Purchases of other intangible assets | (48,036) | (45,238) |
Net Cash Used in Investing Activities | (599,189) | (490,398) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of notes | (251,850) | (240,411) |
Proceeds from Paycheck Protection Program | 648,872 | 526,544 |
Net Cash Provided by Financing Activities | 397,022 | 286,133 |
EFFECT OF CURRENCY EXCHANGE TRANSLATION ON CHANGES IN CASH | 1,224,325 | (469,234) |
NET INCREASE IN CASH | 1,457,019 | 1,086,979 |
CASH AT THE BEGINNING OF THE PERIOD | 15,134,289 | 11,721,683 |
CASH AT THE END OF THE PERIOD | 16,591,308 | 12,808,662 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 28,152 | 37,853 |
Cash paid for taxes |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Apr. 30, 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 US 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 April 30, 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 April 30, 2021 and the results of operations, comprehensive income and cash flows for the interim periods ended April 30, 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, 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 | 6 Months Ended |
Apr. 30, 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. We have two distinct business operations (“Marine Technology Business” and “Engineering Business”). The Marine Technology Business 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 Business which provide engineering services 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, all of its 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 these prepayments 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 April 30, 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 $80,973 in the six months ended April 30, 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 | 6 Months Ended |
Apr. 30, 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 | 6 Months Ended |
Apr. 30, 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 | 6 Months Ended |
Apr. 30, 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: April 30, October 31, 2021 2020 Raw materials and parts $ 8,266,304 $ 7,322,688 Work in progress 922,880 698,756 Finished goods 1,378,910 1,120,829 Total Inventory $ 10,568,094 $ 9,142,273 |
Fixed Assets
Fixed Assets | 6 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 6 – FIXED ASSETS Property and equipment, net consisted of the following as of: April 30, October 31, 2021 2020 Buildings $ 5,336,681 $ 5,103,324 Land 200,000 200,000 Office machinery and equipment 1,595,610 1,512,938 Rental assets 2,249,550 2,062,818 Furniture, fixtures and improvements 1,236,319 1,187,927 Totals 10,618,160 10,067,007 Less: accumulated depreciation (4,579,936 ) (4,007,107 ) Total Property and Equipment, net $ 6,038,224 $ 6,059,900 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Apr. 30, 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: April 30, October 31, 2021 2020 Deposits $ 157,745 $ 112,984 Tax receivables 443,788 131,187 Total Other Current Assets $ 601,533 $ 244,171 |
Estimates
Estimates | 6 Months Ended |
Apr. 30, 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 | 6 Months Ended |
Apr. 30, 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 $1,080,436 and $861,300 as of April 30, 2021 and October 31, 2020, respectively. Our current Deferred Revenue of $1,178,678 and $1,006,454 as of April 30, 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 $201,737 and $195,022 as of April 30, 2021 and October 31, 2020, respectively. |
Concentrations
Concentrations | 6 Months Ended |
Apr. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 10 – CONCENTRATIONS Significant Customers During the three months ended April 30, 2021, the Company had three customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $2,178,677, or 41% of net revenues during the three month period. Total accounts receivable from these customers at April 30, 2021 was $1,048,055 or 33% of accounts receivable. During the three months ended April 30, 2020, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $1,085,570, or 33% of net revenues during the three month period. During the six months ended April 30, 2021, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenues from this customer were $1,045,367, or 10% of net revenues during the six month period. Total accounts receivable from this customer at April 30, 2021 was $321,392 or 10% of accounts receivable. During the six months ended April 30, 2020, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $3,458,537, or 35% of net revenues during the six month period. |
Notes Payable
Notes Payable | 6 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 11 – NOTES PAYABLE April 30, 2021 October 31, 2020 Secured note payable to HSBC NA with interest payable on the 28 th $ 321,258 $ 573,108 Total 321,258 573,108 Less: current portion (321,258 ) (509,769 ) Total Long Term Note Payable $ - $ 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 six months ended April 30, 2021, the Company received $648,872 under the Payroll Protection Program, which was initially recorded as long-term debt. The Company has expended all of the loan funds on qualifying expenditures (as defined). The Company has therefore reduced long-term debt and recorded as Other Income, the total amount of the loans. The Company has applied for forgiveness of the loans under the SBA rules. 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 April 30, 2021. This revolving credit line which is subject to renewal will expire on November 26, 2021 unless renewed by the bank. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Apr. 30, 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 | 6 Months Ended |
Apr. 30, 2021 | |
NET INCOME (LOSS) PER SHARE: | |
Earnings Per Common Share | NOTE 13 – EARNINGS PER COMMON SHARE Three Months Three Months Six Months Six Months Ended Ended Ended Ended April 30, April 30, April 30, April 30, Fiscal Period 2021 2020 2021 2020 Numerator: Net Income (Loss) $ 2,207,933 $ (265,080 ) $ 3,336,777 $ 1,081,693 Denominator: Basic weighted average common shares outstanding 10,772,315 10,721,881 10,763,652 10,721,881 Options issued 419,000 555,000 419,000 555,000 Diluted outstanding shares 11,191,315 11,276,881 11,182,652 11,276,881 Net income (Loss) per share Basic $ 0.20 $ (0.02 ) $ 0.31 $ 0.10 Diluted $ 0.20 $ (0.02 ) $ 0.30 $ 0.10 |
Segment Analysis
Segment Analysis | 6 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Analysis | NOTE 14 -SEGMENT ANALYSIS Based on the fundamental difference between the types of our offerings, 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 along with associated support services. 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 and six months ended April 30, 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 April 30, 2021 Revenues from External Customers $ 4,184,409 $ 1,188,667 $ - $ 5,373,076 Cost of Revenues 1,022,701 600,771 - 1,623,472 Gross Profit 3,161,708 587,896 - 3,749,604 Research & Development 538,878 106,403 - 645,281 Selling, General & Administrative 800,622 552,067 427,312 1,780,001 Total Operating Expenses 1,339,500 658,470 427,312 2,425,282 Income (Loss) from Operations 1,822,208 (70,574 ) (427,312 ) 1,324,322 Other (Expense) Income Other Income 68,583 16 846 69,445 Funding from Paycheck Protection Program 122,327 436,574 - 558,901 Interest Expense (3,518 ) (4,544 ) (5,579 ) (13,641 ) Total Other Income (Expense) 187,392 432,046 (4,733 ) 614,705 Net Income (Loss) before Income Taxes 2,009,600 361,472 (432,045 ) 1,939,027 Income Tax (Expense) Benefit Current Tax Benefit 72,292 237,670 - 309,962 Deferred Tax (Expense) (102,585 ) 112,550 (51,021 ) (41,056 ) Total Income Tax (Expense) Benefit (30,293 ) 350,220 (51,021 ) 268,906 Net Income (Loss) $ 1,979,307 $ 711,692 $ (483,066 ) $ 2,207,933 Supplemental Disclosures Total Assets $ 27,086,894 $ 14,667,654 $ 966,418 $ 42,720,966 Total Liabilities $ 1,839,295 $ 1,027,958 $ 586,739 $ 3,453,992 Revenues from Intercompany Sales - eliminated from sales above $ 504,411 $ 90,443 $ 675,000 $ 1,269,854 Depreciation and Amortization $ 200,536 $ 26,436 $ 6,709 $ 233,681 (Sales) Purchases of Long-lived Assets $ 144,232 $ 1,371 $ 44,442 $ 190,045 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2020 Revenues from External Customers $ 1,691,199 $ 1,598,019 $ - $ 3,289,218 Cost of Revenues 406,853 956,951 - 1,363,804 Gross Profit 1,284,346 641,068 - 1,925,414 Research & Development 442,696 270,945 - 713,641 Selling, General & Administrative 692,177 527,039 313,994 1,533,210 Total Operating Expenses 1,134,873 797,984 313,994 2,246,851 Income (Loss) from Operations 149,473 (156,916 ) (313,994 ) (321,437 ) Other Income (Expense) Other (Expense) Income (327 ) 16 - (311 ) Interest Expense (2,395 ) (3,959 ) (12,102 ) (18,456 ) Total Other (Expense) (2,722 ) (3,943 ) (12,102 ) (18,767 ) Net Income (Loss) before Income Taxes 146,751 (160,859 ) (326,096 ) (340,204 ) Current Tax (Expense) Benefit (6,397 ) (4,045 ) 45,268 34,826 Deferred Tax (Expense) Benefit (1,354 ) 142,793 (101,141 ) 40,298 Total Income Tax (Expense) Benefit (7,751 ) 138,748 (55,873 ) 75,124 Net Income (Loss) $ 139,000 $ (22,111 ) $ (381,969 ) $ (265,080 ) Supplemental Disclosures Total Assets $ 21,256,131 $ 14,231,702 $ 1,050,834 $ 36,538,667 Total Liabilities $ 2,907,719 $ 1,380,925 $ 921,492 $ 5,210,136 Revenues from Intercompany Sales - eliminated from sales above $ 277,658 $ 4,687 $ 675,000 $ 957,345 Depreciation and Amortization $ 94,599 $ 2,745 $ 4,112 $ 101,456 (Sales) Purchases of Long-lived Assets $ (158,874 ) $ (8,441 ) $ 14,554 $ (152,761 ) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2021 Revenues from External Customers $ 7,932,688 $ 2,490,847 $ - $ 10,423,535 Cost of Revenues 1,916,976 1,442,033 - 3,359,009 Gross Profit 6,015,712 1,048,814 - 7,064,526 Research & Development 980,622 247,798 - 1,228,420 Selling, General & Administrative 1,534,447 1,119,626 939,294 3,593,367 Total Operating Expenses 2,515,069 1,367,424 939,294 4,821,787 Income (Loss) from Operations 3,500,643 (318,610 ) (939,294 ) 2,242,739 Other Income (Expense) Other Income 70,619 34 846 71,499 Funding from Paycheck Protection Program 122,327 526,545 - 648,872 Interest Expense (5,771 ) (9,695 ) (12,689 ) (28,155 ) Total Other Income (Expense) 187,175 516,884 (11,843 ) 692,216 Net Income (Loss) before Income Taxes 3,687,818 198,274 (951,137 ) 2,934,955 Income Tax Benefit (Expense) Current Tax Benefit 84,945 237,670 12,072 334,687 Deferred Tax (Expense) Benefit (113,740 ) 264,636 (83,761 ) 67,135 Total Income Tax Benefit (Expense) (28,795 ) 502,306 (71,689 ) 401,822 Net Income (Loss) $ 3,659,023 $ 700,580 $ (1,022,826 ) $ 3,336,777 Supplemental Disclosures Total Assets $ 27,086,894 $ 14,667,654 $ 966,418 $ 42,720,966 Total Liabilities $ 1,839,295 $ 1,027,958 $ 586,739 $ 3,453,992 Revenues from Intercompany Sales - eliminated from sales above $ 875,040 $ 139,644 $ 1,350,000 $ 2,364,684 Depreciation and Amortization $ 512,658 $ 74,081 $ 13,125 $ 599,864 Purchases of Long-lived Assets $ 544,207 $ 5,548 $ 49,434 $ 599,189 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2020 Revenues from External Customers $ 5,324,011 $ 4,646,186 $ - $ 9,970,197 Cost of Revenues 1,062,530 2,707,813 - 3,770,343 Gross Profit 4,261,481 1,938,373 - 6,199,854 Research & Development 999,425 477,383 165,098 1,641,906 Selling, General & Administrative 1,560,175 1,163,335 701,378 3,424,888 Total Operating Expenses 2,559,600 1,640,718 866,476 5,066,794 Income (Loss) from Operations 1,701,881 297,655 (866,476 ) 1,133,060 Other Income (Expense) Other Income 12,497 16 - 12,513 Interest (Expense) (5,627 ) (7,641 ) (24,802 ) (38,070 ) Total Other Income (Expense) 6,870 (7,625 ) (24,802 ) (25,557 ) Net Income (Loss) before Income Taxes 1,708,751 290,030 (891,278 ) 1,107,503 Current Tax Benefit (Expense) 19,436 - (7,957 ) 11,479 Deferred Tax Benefit (Expense) (79,493 ) 130,558 (88,354 ) (37,289 ) Total Income Tax Benefit (Expense) (60,057 ) 130,558 (96,311 ) (25,810 ) Net Income (Loss) $ 1,648,694 $ 420,588 $ (987,589 ) $ 1,081,693 Supplemental Disclosures Total Assets $ 21,256,131 $ 14,231,702 $ 1,050,834 $ 36,538,667 Total Liabilities $ 2,907,719 $ 1,380,925 $ 921,492 $ 5,210,136 Revenues from Intercompany Sales - eliminated from sales above $ 580,480 $ 105,216 $ 1,350,000 $ 2,035,696 Depreciation and Amortization $ 277,592 $ 46,425 $ 9,403 $ 333,420 Purchases of Long-lived Assets $ 440,727 $ 1,152 $ 48,519 $ 490,398 For the Three Months Ended April 30, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 914,529 $ 597,463 $ 1,511,992 Europe 1,665,643 591,204 2,256,847 Australia/Asia 1,487,023 - 1,487,023 Middle East/Africa 117,214 - 117,214 Total Revenues $ 4,184,409 $ 1,188,667 $ 5,373,076 Major Goods/Service Lines Equipment Sales $ 3,090,462 $ 93,505 $ 3,183,967 Equipment Rentals 598,190 - 598,190 Software Sales 221,053 - 221,053 Engineering Parts - 778,369 778,369 Services 274,704 316,792 591,496 Total Revenues $ 4,184,409 $ 1,188,667 $ 5,373,076 Goods transferred at a point in time $ 3,311,515 $ 93,505 $ 3,405,020 Services transferred over time 872,894 1,095,162 1,968,056 Total Revenues $ 4,184,409 $ 1,188,667 $ 5,373,076 For the Three Months Ended April 30, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 513,638 $ 1,010,109 $ 1,523,747 Europe 519,990 587,910 1,107,900 Australia/Asia 620,386 - 620,386 Middle East/Africa 37,185 - 37,185 Total Revenues $ 1,691,199 $ 1,598,019 $ 3,289,218 Major Goods/Service Lines Equipment Sales 513,638 $ - $ 513,638 Equipment Rentals 519,990 - 519,990 Software Sales 620,386 - 620,386 Engineering Parts 37,185 1,435,134 1,472,319 Services - 162,885 162,885 Total Revenues $ 1,691,199 $ 1,598,019 $ 3,289,218 Goods transferred at a point in time $ 377,411 $ - $ 377,411 Services transferred over time 1,313,788 1,598,019 2,911,807 Total Revenues $ 1,691,199 $ 1,598,019 $ 3,289,218 For the Six Months Ended April 30, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 1,463,807 $ 1,113,904 $ 2,577,711 Europe 2,790,755 1,376,943 4,167,698 Australia/Asia 3,495,233 - 3,495,233 Middle East/Africa 182,893 - 182,893 Total Revenues $ 7,932,688 $ 2,490,847 $ 10,423,535 Major Goods/Service Lines Equipment Sales $ 5,883,949 $ 314,462 $ 6,198,411 Equipment Rentals 932,553 - 932,553 Software Sales 446,275 - 446,275 Engineering Parts 213,956 1,634,716 1,848,672 Services 455,955 541,668 997,623 Total Revenues $ 7,932,688 $ 2,490,847 $ 10,423,535 Goods transferred at a point in time $ 6,367,552 $ 314,462 $ 6,682,014 Services transferred over time 1,565,136 2,176,385 3,741,521 Total Revenues $ 7,932,688 $ 2,490,847 $ 10,423,535 For the Six Months Ended April 30, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 1,054,970 $ 3,146,013 $ 4,200,983 Europe 1,139,007 1,500,173 2,639,180 Australia/Asia 3,041,746 - 3,041,746 Middle East/Africa 88,288 - 88,288 Total Revenues $ 5,324,011 $ 4,646,186 $ 9,970,197 Major Goods/Service Lines Equipment Sales $ 3,205,777 $ - $ 3,205,777 Equipment Rentals 828,564 - 828,564 Software Sales 245,521 - 245,521 Engineering Parts - 3,988,363 3,988,363 Services 1,044,149 657,823 1,701,972 Total Revenues $ 5,324,011 $ 4,646,186 $ 9,970,197 Goods transferred at a point in time $ 3,319,289 $ - $ 3,319,289 Services transferred over time 2,004,722 4,646,186 6,650,908 Total Revenues $ 5,324,011 $ 4,646,186 $ 9,970,197 |
Payroll Protection Program
Payroll Protection Program | 6 Months Ended |
Apr. 30, 2021 | |
Payroll Protection Program | |
Payroll Protection Program | NOTE 15 – PAYROLL PROTECTION PROGRAM In the six months ended April 30, 2021 two of our US companies, received $648,872 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 have been used to offset US employees’ salaries during the six month period. In the six months ended April 30, 2021 the Company utilized all of the $648,872 of the Second Round PPP to defray payroll expense. This amount is recorded in our accounts as “Other Income.” We have applied for the loans to be forgiven under the SBA rules. In the 2020 FY certain of our US companies, received $648,872 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 | 6 Months Ended |
Apr. 30, 2021 | |
Revenues from Intercompany Sales - Eliminated from Sales Above | |
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 US and U.K. Governments. If significant portions of the Engineering Services Business’s workforce are unable to work effectively, or if the US. 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, and to take actions in an effort to mitigate adverse consequences. Further, the Pandemic may impact the Company’s results of operations when compared to pre-Pandemic results. 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 uncertainty relating to the trajectory of the Pandemic, in particular the evolving strains of the virus and the associated response of various Governments in the places which we operate will affect the pace at which the Company’s financial performance improves. |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17 – INCOME TAXES The Company’s effective tax rate for the three months ended April 30, 2021 and 2020 was (13.9%) and 28.3%, respectively. The decrease in the effective tax rate for the three months ended April 30, 2021, as compared to April 30, 2020 resulted from the US companies having a taxable loss for the three months ended April 30, 2020 compared to a taxable income for the three months ended April 30, 2021. We also recorded $311,966 related Employee Retention Credits which reduced the current income tax expense for the three months ended April 30,2021. The Company’s effective tax rate for the six months ended April 30, 2021 and 2020 was (13.7%) and 2.4%, respectively. The decrease in the effective tax rate for the six months ended April 30, 2021, as compared to April 30, 2020 resulted from the US companies having a taxable loss for the six months ended April 30, 2020 compared to a taxable income for the six months ended April 30, 2021. We also recorded $311,966 related to Employee Retention Credits, which reduced the current income tax expense for the six months ended April 30,2021. As of April 30, 2021, we had US federal net operating losses (“NOL”) carryforwards of $1,536,899, which expire in 2029. |
Reclassification of Prior Year
Reclassification of Prior Year Presentation | 6 Months Ended |
Apr. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Reclassification of Prior Year Presentation | NOTE 18 - 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) | 6 Months Ended |
Apr. 30, 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: April 30, October 31, 2021 2020 Raw materials and parts $ 8,266,304 $ 7,322,688 Work in progress 922,880 698,756 Finished goods 1,378,910 1,120,829 Total Inventory $ 10,568,094 $ 9,142,273 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following as of: April 30, October 31, 2021 2020 Buildings $ 5,336,681 $ 5,103,324 Land 200,000 200,000 Office machinery and equipment 1,595,610 1,512,938 Rental assets 2,249,550 2,062,818 Furniture, fixtures and improvements 1,236,319 1,187,927 Totals 10,618,160 10,067,007 Less: accumulated depreciation (4,579,936 ) (4,007,107 ) Total Property and Equipment, net $ 6,038,224 $ 6,059,900 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Current Assets | Other current assets consisted of the following at: April 30, October 31, 2021 2020 Deposits $ 157,745 $ 112,984 Tax receivables 443,788 131,187 Total Other Current Assets $ 601,533 $ 244,171 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Note Payable | April 30, 2021 October 31, 2020 Secured note payable to HSBC NA with interest payable on the 28 th $ 321,258 $ 573,108 Total 321,258 573,108 Less: current portion (321,258 ) (509,769 ) Total Long Term Note Payable $ - $ 63,339 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
NET INCOME (LOSS) PER SHARE: | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Three Months Six Months Six Months Ended Ended Ended Ended April 30, April 30, April 30, April 30, Fiscal Period 2021 2020 2021 2020 Numerator: Net Income (Loss) $ 2,207,933 $ (265,080 ) $ 3,336,777 $ 1,081,693 Denominator: Basic weighted average common shares outstanding 10,772,315 10,721,881 10,763,652 10,721,881 Options issued 419,000 555,000 419,000 555,000 Diluted outstanding shares 11,191,315 11,276,881 11,182,652 11,276,881 Net income (Loss) per share Basic $ 0.20 $ (0.02 ) $ 0.31 $ 0.10 Diluted $ 0.20 $ (0.02 ) $ 0.30 $ 0.10 |
Segment Analysis (Tables)
Segment Analysis (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2021 Revenues from External Customers $ 4,184,409 $ 1,188,667 $ - $ 5,373,076 Cost of Revenues 1,022,701 600,771 - 1,623,472 Gross Profit 3,161,708 587,896 - 3,749,604 Research & Development 538,878 106,403 - 645,281 Selling, General & Administrative 800,622 552,067 427,312 1,780,001 Total Operating Expenses 1,339,500 658,470 427,312 2,425,282 Income (Loss) from Operations 1,822,208 (70,574 ) (427,312 ) 1,324,322 Other (Expense) Income Other Income 68,583 16 846 69,445 Funding from Paycheck Protection Program 122,327 436,574 - 558,901 Interest Expense (3,518 ) (4,544 ) (5,579 ) (13,641 ) Total Other Income (Expense) 187,392 432,046 (4,733 ) 614,705 Net Income (Loss) before Income Taxes 2,009,600 361,472 (432,045 ) 1,939,027 Income Tax (Expense) Benefit Current Tax Benefit 72,292 237,670 - 309,962 Deferred Tax (Expense) (102,585 ) 112,550 (51,021 ) (41,056 ) Total Income Tax (Expense) Benefit (30,293 ) 350,220 (51,021 ) 268,906 Net Income (Loss) $ 1,979,307 $ 711,692 $ (483,066 ) $ 2,207,933 Supplemental Disclosures Total Assets $ 27,086,894 $ 14,667,654 $ 966,418 $ 42,720,966 Total Liabilities $ 1,839,295 $ 1,027,958 $ 586,739 $ 3,453,992 Revenues from Intercompany Sales - eliminated from sales above $ 504,411 $ 90,443 $ 675,000 $ 1,269,854 Depreciation and Amortization $ 200,536 $ 26,436 $ 6,709 $ 233,681 (Sales) Purchases of Long-lived Assets $ 144,232 $ 1,371 $ 44,442 $ 190,045 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2020 Revenues from External Customers $ 1,691,199 $ 1,598,019 $ - $ 3,289,218 Cost of Revenues 406,853 956,951 - 1,363,804 Gross Profit 1,284,346 641,068 - 1,925,414 Research & Development 442,696 270,945 - 713,641 Selling, General & Administrative 692,177 527,039 313,994 1,533,210 Total Operating Expenses 1,134,873 797,984 313,994 2,246,851 Income (Loss) from Operations 149,473 (156,916 ) (313,994 ) (321,437 ) Other Income (Expense) Other (Expense) Income (327 ) 16 - (311 ) Interest Expense (2,395 ) (3,959 ) (12,102 ) (18,456 ) Total Other (Expense) (2,722 ) (3,943 ) (12,102 ) (18,767 ) Net Income (Loss) before Income Taxes 146,751 (160,859 ) (326,096 ) (340,204 ) Current Tax (Expense) Benefit (6,397 ) (4,045 ) 45,268 34,826 Deferred Tax (Expense) Benefit (1,354 ) 142,793 (101,141 ) 40,298 Total Income Tax (Expense) Benefit (7,751 ) 138,748 (55,873 ) 75,124 Net Income (Loss) $ 139,000 $ (22,111 ) $ (381,969 ) $ (265,080 ) Supplemental Disclosures Total Assets $ 21,256,131 $ 14,231,702 $ 1,050,834 $ 36,538,667 Total Liabilities $ 2,907,719 $ 1,380,925 $ 921,492 $ 5,210,136 Revenues from Intercompany Sales - eliminated from sales above $ 277,658 $ 4,687 $ 675,000 $ 957,345 Depreciation and Amortization $ 94,599 $ 2,745 $ 4,112 $ 101,456 (Sales) Purchases of Long-lived Assets $ (158,874 ) $ (8,441 ) $ 14,554 $ (152,761 ) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2021 Revenues from External Customers $ 7,932,688 $ 2,490,847 $ - $ 10,423,535 Cost of Revenues 1,916,976 1,442,033 - 3,359,009 Gross Profit 6,015,712 1,048,814 - 7,064,526 Research & Development 980,622 247,798 - 1,228,420 Selling, General & Administrative 1,534,447 1,119,626 939,294 3,593,367 Total Operating Expenses 2,515,069 1,367,424 939,294 4,821,787 Income (Loss) from Operations 3,500,643 (318,610 ) (939,294 ) 2,242,739 Other Income (Expense) Other Income 70,619 34 846 71,499 Funding from Paycheck Protection Program 122,327 526,545 - 648,872 Interest Expense (5,771 ) (9,695 ) (12,689 ) (28,155 ) Total Other Income (Expense) 187,175 516,884 (11,843 ) 692,216 Net Income (Loss) before Income Taxes 3,687,818 198,274 (951,137 ) 2,934,955 Income Tax Benefit (Expense) Current Tax Benefit 84,945 237,670 12,072 334,687 Deferred Tax (Expense) Benefit (113,740 ) 264,636 (83,761 ) 67,135 Total Income Tax Benefit (Expense) (28,795 ) 502,306 (71,689 ) 401,822 Net Income (Loss) $ 3,659,023 $ 700,580 $ (1,022,826 ) $ 3,336,777 Supplemental Disclosures Total Assets $ 27,086,894 $ 14,667,654 $ 966,418 $ 42,720,966 Total Liabilities $ 1,839,295 $ 1,027,958 $ 586,739 $ 3,453,992 Revenues from Intercompany Sales - eliminated from sales above $ 875,040 $ 139,644 $ 1,350,000 $ 2,364,684 Depreciation and Amortization $ 512,658 $ 74,081 $ 13,125 $ 599,864 Purchases of Long-lived Assets $ 544,207 $ 5,548 $ 49,434 $ 599,189 Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2020 Revenues from External Customers $ 5,324,011 $ 4,646,186 $ - $ 9,970,197 Cost of Revenues 1,062,530 2,707,813 - 3,770,343 Gross Profit 4,261,481 1,938,373 - 6,199,854 Research & Development 999,425 477,383 165,098 1,641,906 Selling, General & Administrative 1,560,175 1,163,335 701,378 3,424,888 Total Operating Expenses 2,559,600 1,640,718 866,476 5,066,794 Income (Loss) from Operations 1,701,881 297,655 (866,476 ) 1,133,060 Other Income (Expense) Other Income 12,497 16 - 12,513 Interest (Expense) (5,627 ) (7,641 ) (24,802 ) (38,070 ) Total Other Income (Expense) 6,870 (7,625 ) (24,802 ) (25,557 ) Net Income (Loss) before Income Taxes 1,708,751 290,030 (891,278 ) 1,107,503 Current Tax Benefit (Expense) 19,436 - (7,957 ) 11,479 Deferred Tax Benefit (Expense) (79,493 ) 130,558 (88,354 ) (37,289 ) Total Income Tax Benefit (Expense) (60,057 ) 130,558 (96,311 ) (25,810 ) Net Income (Loss) $ 1,648,694 $ 420,588 $ (987,589 ) $ 1,081,693 Supplemental Disclosures Total Assets $ 21,256,131 $ 14,231,702 $ 1,050,834 $ 36,538,667 Total Liabilities $ 2,907,719 $ 1,380,925 $ 921,492 $ 5,210,136 Revenues from Intercompany Sales - eliminated from sales above $ 580,480 $ 105,216 $ 1,350,000 $ 2,035,696 Depreciation and Amortization $ 277,592 $ 46,425 $ 9,403 $ 333,420 Purchases of Long-lived Assets $ 440,727 $ 1,152 $ 48,519 $ 490,398 |
Schedule of Disaggregate of Revenue from Contracts for Sale with Customers by Geographic Location | For the Three Months Ended April 30, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 914,529 $ 597,463 $ 1,511,992 Europe 1,665,643 591,204 2,256,847 Australia/Asia 1,487,023 - 1,487,023 Middle East/Africa 117,214 - 117,214 Total Revenues $ 4,184,409 $ 1,188,667 $ 5,373,076 Major Goods/Service Lines Equipment Sales $ 3,090,462 $ 93,505 $ 3,183,967 Equipment Rentals 598,190 - 598,190 Software Sales 221,053 - 221,053 Engineering Parts - 778,369 778,369 Services 274,704 316,792 591,496 Total Revenues $ 4,184,409 $ 1,188,667 $ 5,373,076 Goods transferred at a point in time $ 3,311,515 $ 93,505 $ 3,405,020 Services transferred over time 872,894 1,095,162 1,968,056 Total Revenues $ 4,184,409 $ 1,188,667 $ 5,373,076 For the Three Months Ended April 30, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 513,638 $ 1,010,109 $ 1,523,747 Europe 519,990 587,910 1,107,900 Australia/Asia 620,386 - 620,386 Middle East/Africa 37,185 - 37,185 Total Revenues $ 1,691,199 $ 1,598,019 $ 3,289,218 Major Goods/Service Lines Equipment Sales 513,638 $ - $ 513,638 Equipment Rentals 519,990 - 519,990 Software Sales 620,386 - 620,386 Engineering Parts 37,185 1,435,134 1,472,319 Services - 162,885 162,885 Total Revenues $ 1,691,199 $ 1,598,019 $ 3,289,218 Goods transferred at a point in time $ 377,411 $ - $ 377,411 Services transferred over time 1,313,788 1,598,019 2,911,807 Total Revenues $ 1,691,199 $ 1,598,019 $ 3,289,218 For the Six Months Ended April 30, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 1,463,807 $ 1,113,904 $ 2,577,711 Europe 2,790,755 1,376,943 4,167,698 Australia/Asia 3,495,233 - 3,495,233 Middle East/Africa 182,893 - 182,893 Total Revenues $ 7,932,688 $ 2,490,847 $ 10,423,535 Major Goods/Service Lines Equipment Sales $ 5,883,949 $ 314,462 $ 6,198,411 Equipment Rentals 932,553 - 932,553 Software Sales 446,275 - 446,275 Engineering Parts 213,956 1,634,716 1,848,672 Services 455,955 541,668 997,623 Total Revenues $ 7,932,688 $ 2,490,847 $ 10,423,535 Goods transferred at a point in time $ 6,367,552 $ 314,462 $ 6,682,014 Services transferred over time 1,565,136 2,176,385 3,741,521 Total Revenues $ 7,932,688 $ 2,490,847 $ 10,423,535 For the Six Months Ended April 30, 2020 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 1,054,970 $ 3,146,013 $ 4,200,983 Europe 1,139,007 1,500,173 2,639,180 Australia/Asia 3,041,746 - 3,041,746 Middle East/Africa 88,288 - 88,288 Total Revenues $ 5,324,011 $ 4,646,186 $ 9,970,197 Major Goods/Service Lines Equipment Sales $ 3,205,777 $ - $ 3,205,777 Equipment Rentals 828,564 - 828,564 Software Sales 245,521 - 245,521 Engineering Parts - 3,988,363 3,988,363 Services 1,044,149 657,823 1,701,972 Total Revenues $ 5,324,011 $ 4,646,186 $ 9,970,197 Goods transferred at a point in time $ 3,319,289 $ - $ 3,319,289 Services transferred over time 2,004,722 4,646,186 6,650,908 Total Revenues $ 5,324,011 $ 4,646,186 $ 9,970,197 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Oct. 31, 2020 | |
Revenue Recognition [Abstract] | |||
Deferred commissions | $ 0 | $ 3,884 | |
Amortization expense related to deferred commissions | $ 3,884 | $ 80,973 |
Inventory - Schedule of Compone
Inventory - Schedule of Components of Inventory (Details) - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Inventory, Net [Abstract] | ||
Raw materials and parts | $ 8,266,304 | $ 7,322,688 |
Work in progress | 922,880 | 698,756 |
Finished goods | 1,378,910 | 1,120,829 |
Total Inventory | $ 10,568,094 | $ 9,142,273 |
Fixed Assets - Schedule of Prop
Fixed Assets - Schedule of Property and Equipment (Details) - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Property and equipment, gross | $ 10,618,160 | $ 10,067,007 |
Less: accumulated depreciation | (4,579,936) | (4,007,107) |
Total Property and Equipment, net | 6,038,224 | 6,059,900 |
Buildings [Member] | ||
Property and equipment, gross | 5,336,681 | 5,103,324 |
Land [Member] | ||
Property and equipment, gross | 200,000 | 200,000 |
Office Machinery and Equipment [Member] | ||
Property and equipment, gross | 1,595,610 | 1,512,938 |
Rental Assets [Member] | ||
Property and equipment, gross | 2,249,550 | 2,062,818 |
Furniture, Fixtures and Improvements [Member] | ||
Property and equipment, gross | $ 1,236,319 | $ 1,187,927 |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 157,745 | $ 112,984 |
Tax receivables | 443,788 | 131,187 |
Total Other Current Assets | $ 601,533 | $ 244,171 |
Contracts in Progress (Details
Contracts in Progress (Details Narrative) - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 1,080,436 | $ 861,300 |
Current deferred revenue | 1,178,678 | 1,006,454 |
Non-current deferred revenue | $ 201,737 | $ 195,022 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Three Customer [Member] | ||||
Percentage of sales from customers | 10.00% | |||
Three Customer [Member] | Revenue [Member] | ||||
Percentage of sales from customers | 41.00% | |||
Revenue from customer | $ 2,178,677 | |||
Three Customer [Member] | Accounts Receivable [Member] | ||||
Percentage of sales from customers | 33.00% | |||
Revenue from customer | $ 1,048,055 | |||
Two Customer [Member] | ||||
Percentage of sales from customers | 10.00% | 10.00% | ||
Two Customer [Member] | Revenue [Member] | ||||
Percentage of sales from customers | 33.00% | 35.00% | ||
Revenue from customer | $ 1,085,570 | $ 3,458,537 | ||
One Customer [Member] | ||||
Percentage of sales from customers | 10.00% | |||
One Customer [Member] | Revenue [Member] | ||||
Percentage of sales from customers | 10.00% | |||
Revenue from customer | $ 1,045,367 | |||
One Customer [Member] | Accounts Receivable [Member] | ||||
Percentage of sales from customers | 10.00% | |||
Revenue from customer | $ 321,392 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Oct. 31, 2020 | Nov. 27, 2019 | |
Proceeds from payroll protection program | $ 648,872 | ||
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 ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Total | $ 321,258 | $ 573,108 |
Less: current portion | (321,258) | (509,769) |
Total Long Term Notes Payable | 63,339 | |
Secured Note Payable [Member] | ||
Total | $ 321,258 | $ 573,108 |
Notes Payable - Schedule of N_2
Notes Payable - Schedule of Note Payable (Details) (Parenthetical) - Secured Note Payable [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Oct. 31, 2020 | |
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 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2021 | Jan. 31, 2021 | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
NET INCOME (LOSS) PER SHARE: | ||||||
Net Income (Loss) | $ 2,207,933 | $ 1,128,844 | $ (265,080) | $ 1,346,773 | $ 3,336,777 | $ 1,081,693 |
Denominator: Basic weighted average common shares outstanding | 10,772,315 | 10,721,881 | 10,763,652 | 10,721,881 | ||
Denominator: Options issued | 419,000 | 555,000 | 419,000 | 555,000 | ||
Denominator: Diluted outstanding shares | 11,191,315 | 11,276,881 | 11,182,652 | 11,276,881 | ||
Net income per share, Basic | $ 0.20 | $ (0.02) | $ 0.31 | $ 0.10 | ||
Net income per share, Diluted | $ 0.20 | $ (0.02) | $ 0.30 | $ 0.10 |
Segment Analysis (Details Narra
Segment Analysis (Details Narrative) | 6 Months Ended |
Apr. 30, 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 | 6 Months Ended | |||||
Apr. 30, 2021 | Jan. 31, 2021 | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Oct. 31, 2020 | |
Revenues from External Customers | $ 5,373,076 | $ 3,289,218 | $ 10,423,535 | $ 9,970,197 | |||
Cost of Revenues | 1,623,472 | 1,363,804 | 3,359,009 | 3,770,343 | |||
Gross Profit | 3,749,604 | 1,925,414 | 7,064,526 | 6,199,854 | |||
Research & Development | 645,281 | 713,641 | 1,228,420 | 1,641,906 | |||
Selling, General & Administrative | 1,780,001 | 1,533,210 | 3,593,367 | 3,424,888 | |||
Total Operating Expenses | 2,425,282 | 2,246,851 | 4,821,787 | 5,066,794 | |||
Income (Loss) from Operations | 1,324,322 | (321,437) | 2,242,739 | 1,133,060 | |||
Other Income | 69,445 | (311) | 71,499 | 12,513 | |||
Funding from Paycheck Protection Program | 558,901 | 648,872 | |||||
Interest Expense | (13,641) | (18,456) | (28,155) | (38,070) | |||
Total Other Income (Expense) | 614,705 | (18,767) | 692,216 | (25,557) | |||
Net Income (Loss) before Income Taxes | 1,939,027 | (340,204) | 2,934,955 | 1,107,503 | |||
Current Tax Benefit | 309,962 | 34,826 | 334,687 | 11,479 | |||
Deferred Tax (Expense) Benefit | (41,056) | 40,298 | 67,135 | (37,289) | |||
Total Income Tax (Expense) Benefit | 268,906 | 75,124 | 401,822 | (25,810) | |||
Net Income (Loss) | 2,207,933 | $ 1,128,844 | (265,080) | $ 1,346,773 | 3,336,777 | 1,081,693 | |
Total Assets | 42,720,966 | 36,538,667 | 42,720,966 | 36,538,667 | $ 38,039,151 | ||
Total Liabilities | 3,453,992 | 5,210,136 | 3,453,992 | 5,210,136 | $ 3,642,883 | ||
Revenues from Intercompany Sales - eliminated from sales above | 1,269,854 | 957,345 | 2,364,684 | 2,035,696 | |||
Depreciation and Amortization | 233,681 | 101,456 | 599,864 | 333,420 | |||
(Sales) Purchases of Long-lived Assets | 190,045 | (152,761) | 599,189 | 490,398 | |||
Marine Technology Business (Products) [Member] | |||||||
Revenues from External Customers | 4,184,409 | 1,691,199 | 7,932,688 | 5,324,011 | |||
Cost of Revenues | 1,022,701 | 406,853 | 1,916,976 | 1,062,530 | |||
Gross Profit | 3,161,708 | 1,284,346 | 6,015,712 | 4,261,481 | |||
Research & Development | 538,878 | 442,696 | 980,622 | 999,425 | |||
Selling, General & Administrative | 800,622 | 692,177 | 1,534,447 | 1,560,175 | |||
Total Operating Expenses | 1,339,500 | 1,134,873 | 2,515,069 | 2,559,600 | |||
Income (Loss) from Operations | 1,822,208 | 149,473 | 3,500,643 | 1,701,881 | |||
Other Income | 68,583 | (327) | 70,619 | 12,497 | |||
Funding from Paycheck Protection Program | 122,327 | 122,327 | |||||
Interest Expense | (3,518) | (2,395) | (5,771) | (5,627) | |||
Total Other Income (Expense) | 187,392 | (2,722) | 187,175 | 6,870 | |||
Net Income (Loss) before Income Taxes | 2,009,600 | 146,751 | 3,687,818 | 1,708,751 | |||
Current Tax Benefit | 72,292 | (6,397) | 84,945 | 19,436 | |||
Deferred Tax (Expense) Benefit | (102,585) | (1,354) | (113,740) | (79,493) | |||
Total Income Tax (Expense) Benefit | (30,293) | (7,751) | (28,795) | (60,057) | |||
Net Income (Loss) | 1,979,307 | 139,000 | 3,659,023 | 1,648,694 | |||
Total Assets | 27,086,894 | 21,256,131 | 27,086,894 | 21,256,131 | |||
Total Liabilities | 1,839,295 | 2,907,719 | 1,839,295 | 2,907,719 | |||
Revenues from Intercompany Sales - eliminated from sales above | 504,411 | 277,658 | 875,040 | 580,480 | |||
Depreciation and Amortization | 200,536 | 94,599 | 512,658 | 277,592 | |||
(Sales) Purchases of Long-lived Assets | 144,232 | (158,874) | 544,207 | 440,727 | |||
Marine Engineering Business (Services) [Member] | |||||||
Revenues from External Customers | 1,188,667 | 1,598,019 | 2,490,847 | 4,646,186 | |||
Cost of Revenues | 600,771 | 956,951 | 1,442,033 | 2,707,813 | |||
Gross Profit | 587,896 | 641,068 | 1,048,814 | 1,938,373 | |||
Research & Development | 106,403 | 270,945 | 247,798 | 477,383 | |||
Selling, General & Administrative | 552,067 | 527,039 | 1,119,626 | 1,163,335 | |||
Total Operating Expenses | 658,470 | 797,984 | 1,367,424 | 1,640,718 | |||
Income (Loss) from Operations | (70,574) | (156,916) | (318,610) | 297,655 | |||
Other Income | 16 | 16 | 34 | 16 | |||
Funding from Paycheck Protection Program | 436,574 | 526,545 | |||||
Interest Expense | (4,544) | (3,959) | (9,695) | (7,641) | |||
Total Other Income (Expense) | 432,046 | (3,943) | 516,884 | (7,625) | |||
Net Income (Loss) before Income Taxes | 361,472 | (160,859) | 198,274 | 290,030 | |||
Current Tax Benefit | 237,670 | (4,045) | 237,670 | ||||
Deferred Tax (Expense) Benefit | 112,550 | 142,793 | 264,636 | 130,558 | |||
Total Income Tax (Expense) Benefit | 350,220 | 138,748 | 502,306 | 130,558 | |||
Net Income (Loss) | 711,692 | (22,111) | 700,580 | 420,588 | |||
Total Assets | 14,667,654 | 14,231,702 | 14,667,654 | 14,231,702 | |||
Total Liabilities | 1,027,958 | 1,380,925 | 1,027,958 | 1,380,925 | |||
Revenues from Intercompany Sales - eliminated from sales above | 90,443 | 4,687 | 139,644 | 105,216 | |||
Depreciation and Amortization | 26,436 | 2,745 | 74,081 | 46,425 | |||
(Sales) Purchases of Long-lived Assets | 1,371 | (8,441) | 5,548 | 1,152 | |||
Overhead [Member] | |||||||
Revenues from External Customers | |||||||
Cost of Revenues | |||||||
Gross Profit | |||||||
Research & Development | 165,098 | ||||||
Selling, General & Administrative | 427,312 | 313,994 | 939,294 | 701,378 | |||
Total Operating Expenses | 427,312 | 313,994 | 939,294 | 866,476 | |||
Income (Loss) from Operations | (427,312) | (313,994) | (939,294) | (866,476) | |||
Other Income | 846 | 846 | |||||
Funding from Paycheck Protection Program | |||||||
Interest Expense | (5,579) | (12,102) | (12,689) | (24,802) | |||
Total Other Income (Expense) | (4,733) | (12,102) | (11,843) | (24,802) | |||
Net Income (Loss) before Income Taxes | (432,045) | (326,096) | (951,137) | (891,278) | |||
Current Tax Benefit | 45,268 | 12,072 | (7,957) | ||||
Deferred Tax (Expense) Benefit | (51,021) | (101,141) | (83,761) | (88,354) | |||
Total Income Tax (Expense) Benefit | (51,021) | (55,873) | (71,689) | (96,311) | |||
Net Income (Loss) | (483,066) | (381,969) | (1,022,826) | (987,589) | |||
Total Assets | 966,418 | 1,050,834 | 966,418 | 1,050,834 | |||
Total Liabilities | 586,739 | 921,492 | 586,739 | 921,492 | |||
Revenues from Intercompany Sales - eliminated from sales above | 675,000 | 675,000 | 1,350,000 | 1,350,000 | |||
Depreciation and Amortization | 6,709 | 4,112 | 13,125 | 9,403 | |||
(Sales) Purchases of Long-lived Assets | $ 44,442 | $ 14,554 | $ 49,434 | $ 48,519 |
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 | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Total Revenues | $ 5,373,076 | $ 3,289,218 | $ 10,423,535 | $ 9,970,197 |
Goods Transferred at a Point in Time [Member] | ||||
Total Revenues | 3,405,020 | 377,411 | 6,682,014 | 3,319,289 |
Services Transferred Over Time [Member] | ||||
Total Revenues | 1,968,056 | 2,911,807 | 3,741,521 | 6,650,908 |
Equipment Sales [Member] | ||||
Total Revenues | 3,183,967 | 513,638 | 6,198,411 | 3,205,777 |
Equipment Rentals [Member] | ||||
Total Revenues | 598,190 | 519,990 | 932,553 | 828,564 |
Software Sales [Member] | ||||
Total Revenues | 221,053 | 620,386 | 446,275 | 245,521 |
Engineering Parts [Member] | ||||
Total Revenues | 778,369 | 1,472,319 | 1,848,672 | 3,988,363 |
Services [Member] | ||||
Total Revenues | 591,496 | 162,885 | 997,623 | 1,701,972 |
Americas [Member] | ||||
Total Revenues | 1,511,992 | 1,523,747 | 2,577,711 | 4,200,983 |
Europe [Member] | ||||
Total Revenues | 2,256,847 | 1,107,900 | 4,167,698 | 2,639,180 |
Australia/Asia [Member] | ||||
Total Revenues | 1,487,023 | 620,386 | 3,495,233 | 3,041,746 |
Middle East & Africa [Member] | ||||
Total Revenues | 117,214 | 37,185 | 182,893 | 88,288 |
Marine Technology Business (Products) [Member] | ||||
Total Revenues | 4,184,409 | 1,691,199 | 7,932,688 | 5,324,011 |
Marine Technology Business (Products) [Member] | Goods Transferred at a Point in Time [Member] | ||||
Total Revenues | 3,311,515 | 377,411 | 6,367,552 | 3,319,289 |
Marine Technology Business (Products) [Member] | Services Transferred Over Time [Member] | ||||
Total Revenues | 872,894 | 1,313,788 | 1,565,136 | 2,004,722 |
Marine Technology Business (Products) [Member] | Equipment Sales [Member] | ||||
Total Revenues | 3,090,462 | 513,638 | 5,883,949 | 3,205,777 |
Marine Technology Business (Products) [Member] | Equipment Rentals [Member] | ||||
Total Revenues | 598,190 | 519,990 | 932,553 | 828,564 |
Marine Technology Business (Products) [Member] | Software Sales [Member] | ||||
Total Revenues | 221,053 | 620,386 | 446,275 | 245,521 |
Marine Technology Business (Products) [Member] | Engineering Parts [Member] | ||||
Total Revenues | 37,185 | 213,956 | ||
Marine Technology Business (Products) [Member] | Services [Member] | ||||
Total Revenues | 274,704 | 455,955 | 1,044,149 | |
Marine Technology Business (Products) [Member] | Americas [Member] | ||||
Total Revenues | 914,529 | 513,638 | 1,463,807 | 1,054,970 |
Marine Technology Business (Products) [Member] | Europe [Member] | ||||
Total Revenues | 1,665,643 | 519,990 | 2,790,755 | 1,139,007 |
Marine Technology Business (Products) [Member] | Australia/Asia [Member] | ||||
Total Revenues | 1,487,023 | 620,386 | 3,495,233 | 3,041,746 |
Marine Technology Business (Products) [Member] | Middle East & Africa [Member] | ||||
Total Revenues | 117,214 | 37,185 | 182,893 | 88,288 |
Marine Engineering Business (Services) [Member] | ||||
Total Revenues | 1,188,667 | 1,598,019 | 2,490,847 | 4,646,186 |
Marine Engineering Business (Services) [Member] | Goods Transferred at a Point in Time [Member] | ||||
Total Revenues | 93,505 | 314,462 | ||
Marine Engineering Business (Services) [Member] | Services Transferred Over Time [Member] | ||||
Total Revenues | 1,095,162 | 1,598,019 | 2,176,385 | 4,646,186 |
Marine Engineering Business (Services) [Member] | Equipment Sales [Member] | ||||
Total Revenues | 93,505 | 314,462 | ||
Marine Engineering Business (Services) [Member] | Equipment Rentals [Member] | ||||
Total Revenues | ||||
Marine Engineering Business (Services) [Member] | Software Sales [Member] | ||||
Total Revenues | ||||
Marine Engineering Business (Services) [Member] | Engineering Parts [Member] | ||||
Total Revenues | 778,369 | 1,435,134 | 1,634,716 | 3,988,363 |
Marine Engineering Business (Services) [Member] | Services [Member] | ||||
Total Revenues | 316,792 | 162,885 | 541,668 | 657,823 |
Marine Engineering Business (Services) [Member] | Americas [Member] | ||||
Total Revenues | 597,463 | 1,010,109 | 1,113,904 | 3,146,013 |
Marine Engineering Business (Services) [Member] | Europe [Member] | ||||
Total Revenues | 591,204 | 587,910 | 1,376,943 | 1,500,173 |
Marine Engineering Business (Services) [Member] | Australia/Asia [Member] | ||||
Total Revenues | ||||
Marine Engineering Business (Services) [Member] | Middle East & Africa [Member] | ||||
Total Revenues |
Payroll Protection Program (Det
Payroll Protection Program (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Oct. 31, 2020 | |
Other Income | $ 69,445 | $ (311) | $ 71,499 | $ 12,513 | |
Second Round Payroll Protection Program [Member] | |||||
Proceeds from PPP loan | 648,872 | ||||
Other Income | $ 648,872 | ||||
First Round Payroll Protection Program [Member] | |||||
Proceeds from PPP loan | $ 648,872 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | (13.90%) | 28.30% | (13.70%) | 2.40% |
Employee retention credits | $ 311,966 | $ 311,966 | ||
Net operating loss | $ 1,536,899 | $ 1,536,899 | ||
Operating loss expiration description | Expire in 2029 |