Cover
Cover - shares | 3 Months Ended | |
Jan. 31, 2022 | Mar. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --10-31 | |
Entity File Number | 001-38154 | |
Entity Registrant Name | CODA OCTOPUS GROUP, INC. | |
Entity Central Index Key | 0001334325 | |
Entity Tax Identification Number | 34-2008348 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 3300 S Hiawassee Rd | |
Entity Address, Address Line Two | Suite 104-105 | |
Entity Address, City or Town | Orlando | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32835 | |
City Area Code | 863 | |
Local Phone Number | 937 8985 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CODA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,857,195 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 31, 2022 | Oct. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 20,711,228 | $ 17,747,656 |
Accounts Receivable, net | 1,535,682 | 4,207,996 |
Inventory | 11,159,798 | 10,691,177 |
Unbilled Receivables | 401,661 | 1,080,384 |
Prepaid Expenses | 313,945 | 1,202,327 |
Other Current Assets | 651,724 | 627,619 |
Total Current Assets | 34,774,038 | 35,557,159 |
FIXED ASSETS | ||
Property and Equipment, net | 6,743,670 | 6,037,101 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,794,880 | 3,794,383 |
Deferred Tax Asset | 86,643 | 76,776 |
Total Other Assets | 3,881,523 | 3,871,159 |
Total Assets | 45,399,231 | 45,465,419 |
CURRENT LIABILITIES | ||
Accounts Payable | 319,605 | 1,454,611 |
Accrued Expenses and Other Current Liabilities | 805,573 | 740,449 |
Note Payable | 63,559 | |
Deferred Revenue | 1,288,231 | 1,999,841 |
Total Current Liabilities | 2,413,409 | 4,258,460 |
LONG TERM LIABILITIES | ||
Deferred Revenue, less current portion | 153,176 | 157,886 |
Total Long Term Liabilities | 153,176 | 157,886 |
Total Liabilities | 2,566,585 | 4,416,346 |
STOCKHOLDERS’ EQUITY | ||
Common Stock, $.001 par value; 150,000,000 shares authorized, 10,857,195 shares issued and outstanding as of January 31, 2022 and October 31, 2021, respectively | 10,858 | 10,858 |
Additional Paid-in Capital | 61,508,306 | 61,183,131 |
Accumulated Other Comprehensive Loss | (1,425,909) | (1,667,059) |
Accumulated Deficit | (17,260,609) | (18,477,857) |
Total Stockholders’ Equity | 42,832,646 | 41,049,073 |
Total Liabilities and Stockholders’ Equity | $ 45,399,231 | $ 45,465,419 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2022 | Oct. 31, 2021 |
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 | 10,857,195 | 10,857,195 |
Common stock, shares outstanding | 10,857,195 | 10,857,195 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Income Statement [Abstract] | ||
Net Revenues | $ 5,838,208 | $ 5,050,459 |
Cost of Revenues | 1,678,274 | 1,735,537 |
Gross Profit | 4,159,934 | 3,314,922 |
OPERATING EXPENSES | ||
Research & Development | 672,890 | 583,139 |
Selling, General & Administrative | 2,111,112 | 1,813,366 |
Total Operating Expenses | 2,784,002 | 2,396,505 |
INCOME FROM OPERATIONS | 1,375,932 | 918,417 |
OTHER INCOME (EXPENSE) | ||
Other Income | 79,994 | 92,025 |
Interest Expense | (11,278) | (14,514) |
Total Other Income | 68,716 | 77,511 |
INCOME BEFORE INCOME TAX EXPENSE | 1,444,648 | 995,928 |
INCOME TAX (EXPENSE) BENEFIT | ||
Current Tax (Expense) Benefit | (285,609) | 24,725 |
Deferred Tax Benefit | 58,209 | 108,191 |
Total Income Tax (Expense) Benefit | (227,400) | 132,916 |
NET INCOME | $ 1,217,248 | $ 1,128,844 |
NET INCOME PER SHARE: | ||
Basic | $ 0.11 | $ 0.10 |
Diluted | $ 0.11 | $ 0.10 |
WEIGHTED AVERAGE SHARES: | ||
Basic | 10,857,195 | 10,751,881 |
Diluted | 11,396,861 | 11,308,881 |
Foreign Currency Translation Adjustment | $ 241,150 | $ 925,613 |
Total Other Comprehensive Income | 241,150 | 925,613 |
COMPREHENSIVE INCOME | $ 1,458,398 | $ 2,054,457 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Oct. 31, 2020 | $ 10,753 | $ 60,132,415 | $ (2,321,278) | $ (23,425,622) | $ 34,396,268 |
Beginning balance, shares at Oct. 31, 2020 | 10,751,881 | ||||
Employee stock based compensation | 174,447 | 174,447 | |||
Foreign currency translation adjustment | 925,613 | 925,613 | |||
Net Income | 1,128,844 | 1,128,844 | |||
Ending balance, value at Jan. 31, 2021 | $ 10,753 | 60,306,862 | (1,395,665) | (22,296,778) | 36,625,172 |
Ending balance, shares at Jan. 31, 2021 | 10,751,881 | ||||
Beginning balance, value at Oct. 31, 2021 | $ 10,858 | 61,183,131 | (1,667,059) | (18,477,857) | 41,049,073 |
Beginning balance, shares at Oct. 31, 2021 | 10,857,195 | ||||
Employee stock based compensation | 325,175 | 325,175 | |||
Foreign currency translation adjustment | 241,150 | 241,150 | |||
Net Income | 1,217,248 | 1,217,248 | |||
Ending balance, value at Jan. 31, 2022 | $ 10,858 | $ 61,508,306 | $ (1,425,909) | $ (17,260,609) | $ 42,832,646 |
Ending balance, shares at Jan. 31, 2022 | 10,857,195 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,217,248 | $ 1,128,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 161,466 | 366,183 |
Stock based compensation | 325,175 | 174,447 |
Deferred income taxes | (9,750) | (108,191) |
Funding from Paycheck Protection Program recognized as income | (89,971) | |
(Increase) decrease in operating assets: | ||
Accounts receivable | 2,608,920 | 144,023 |
Inventory | (613,670) | (853,446) |
Unbilled receivables | 675,179 | (450,180) |
Prepaid expenses | 863,618 | (10,805) |
Other current assets | (26,093) | (47,225) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | (1,047,139) | (540,604) |
Deferred revenue | (693,455) | 316,639 |
Net Cash Provided by Operating Activities | 3,461,499 | 29,714 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (987,093) | (406,083) |
Purchases of other intangible assets | (14,871) | (3,061) |
Net Cash Used in by Investing Activities | (1,001,964) | (409,144) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of note | (63,559) | (125,142) |
Proceeds from Paycheck Protection Program | 526,545 | |
Net Cash (Used in) Provided by Financing Activities | (63,559) | 401,403 |
EFFECT OF CURRENCY TRANSLATION ON CHANGES IN CASH | 567,596 | 925,613 |
NET INCREASE IN CASH | 2,963,572 | 947,586 |
CASH AT THE BEGINNING OF THE PERIOD | 17,747,656 | 15,134,289 |
CASH AT THE END OF THE PERIOD | 20,711,228 | 16,081,875 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 11,278 | 14,514 |
Cash paid for taxes | $ 51,264 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Coda Octopus Group, Inc. (“Coda,” “the Company,” or “we”) operates two distinct operating business units. These are the Marine Technology Business (“Products Business”, “Products Operations” or “Products Segment”) and the Marine Engineering Business (“Services Business”, “Engineering Business” or “Engineering Operations”). The Marine Technology Business sells technology solutions to the subsea and underwater markets. These are designed, developed, manufactured and supported by the Business. Among the solutions it designs and develops, and which currently is its main revenue generating product, is its real time 3D volumetric imaging sonar which is a patented unique and leading product in the subsea/underwater market and marketed under the name Echoscope ® The consolidated financial statements include the accounts of Coda Octopus Group, Inc. and our domestic and foreign subsidiaries. All significant intercompany transactions and balances have been eliminated in the consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Jan. 31, 2022 | |
Revenue Recognition | |
REVENUE RECOGNITION | NOTE 2 – REVENUE RECOGNITION The Company recognizes revenue under the 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. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 NOTE 2 – REVENUE RECOGNITION (Continued) 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 and are recognized as revenue when the Company has fulfilled its obligations under the respective contracts. Until such time, we recognize this prepayment as deferred revenue. For software license sales for which any services rendered are not considered distinct to the functionality of the software, we recognize revenue upon delivery of the software. With respect to revenues related to our Services 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 and, revenue is recognized on these contracts based on material and the direct labor hours incurred. Revenues from fixed-price contracts are recognized on the percentage-of-completion method, measured by the percentage of costs incurred (materials and direct labor hours) to date to estimated total services (materials and direct labor hours) for each contract. This method is used as we consider expenditures for direct materials and labor hours to be the best available measure of progress on these contracts. On a quarterly basis, we examine all 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. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 NOTE 2 – REVENUE RECOGNITION (Continued) 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, 2022, and October 31, 2021, we had deferred commissions of $ 0 and $ 0 , respectively. Amortization expense related to deferred commissions was $ 0 and $ 3,884 in the three months years ended January 31, 2022, and 2021, respectively. Other Revenue Disclosures See Note 15 – Disaggregation of Revenue for a breakdown of revenues from external customers and cost of those revenues between our Product Segment and Services Segment including information on the split of revenues by geography. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Jan. 31, 2022 | |
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, 2022 | |
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. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 |
INVENTORY
INVENTORY | 3 Months Ended |
Jan. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 5 – INVENTORY Inventory is stated at the lower of cost (First in, First Out method) or net realizable value. Inventory consisted of the following components: SCHEDULE OF COMPONENTS OF INVENTORY January 31, October 31, 2022 2021 Raw materials and parts $ 7,926,535 $ 7,525,419 Work in progress 793,246 919,619 Finished goods 2,440,017 2,246,139 Total Inventory $ 11,159,798 $ 10,691,177 |
FIXED ASSETS
FIXED ASSETS | 3 Months Ended |
Jan. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 6 – FIXED ASSETS Property and equipment consisted of the following as of: SCHEDULE OF PROPERTY AND EQUIPMENT January 31, October 31, 2022 2021 Buildings $ 6,019,236 $ 5,298,028 Land 200,000 200,000 Office machinery and equipment 1,666,436 1,622,871 Rental assets 2,427,189 2,326,486 Furniture, fixtures and improvements 1,206,402 1,218,217 Totals 11,519,263 10,665,602 Less: accumulated depreciation (4,775,593 ) (4,628,501 ) Total Property and Equipment, net $ 6,743,670 $ 6,037,101 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 3 Months Ended |
Jan. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 7 – OTHER CURRENT ASSETS Other current assets consisted of the following as of: SUMMARY OF OTHER CURRENT ASSETS January 31, October 31, 2022 2021 Deposits $ 32,280 $ 63,992 Other Tax Receivables 43,156 - Employee Retention Credit Receivables 576,288 563,627 Total Other Current Assets $ 651,724 $ 627,619 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 |
ESTIMATES
ESTIMATES | 3 Months Ended |
Jan. 31, 2022 | |
Estimates | |
ESTIMATES | NOTE 8 – ESTIMATES The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues including unbilled and deferred revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates related to the percentage of completion method used to account for contracts including costs and earnings in excess of billings, billings in excess of costs and estimated earnings and the valuation of goodwill. |
CONTRACTS IN PROGESS
CONTRACTS IN PROGESS | 3 Months Ended |
Jan. 31, 2022 | |
Contracts In Progess | |
CONTRACTS IN PROGESS | NOTE 9 – CONTRACTS IN PROGESS 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 $ 401,661 and $ 1,080,384 as of January 31, 2022, and October 31, 2021, respectively. Our Deferred Revenue of $ 1,151,451 and $ 1,879,790 as of January 31, 2022, and October 31, 2021, 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. Sales of equipment include a separate performance obligation for warranty, which is treated as deferred revenue, along with extended warranty sales, 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, sold as Through Life Support (TLS) Package) from the date of sale. These amounts are stated on the consolidated balance sheets as a component of Deferred Revenue and were $ 289,956 and $ 277,937 as of January 31, 2022 and October 31, 2021, respectively. |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended |
Jan. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 10 – CONCENTRATIONS Significant Customers During the three months ended January 31, 31, 2022, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenue from these customers was $ 1,855,731 , or 32 % of net revenues during the period. Receivables from these customers was less than 10% of net receivables as of January 31, 2022. 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 as of January 31, 2021 was $ 862,850 or 46 % of accounts receivable. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 |
NOTE PAYABLE
NOTE PAYABLE | 3 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE | NOTE 11 – NOTE PAYABLE SCHEDULE OF NOTE PAYABLE January 31, October 31, 2022 2021 Secured note payable to HSBC NA with interest payable on the 28 th 4.56 % per annum. Our monthly repayment obligation under this loan is $ 43,777 (comprising both principal and interest repayment). The maturity of this Loan was December 28, 2021 $ - $ 63,559 Total - 63,559 Less: current portion - (63,559 ) Total Long Term Note Payable $ - $ - The HSBC loan was satisfied in full in the Current Quarter. 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. This revolving line of credit facility is subject to annual renewal and has been extended to November 2022. The outstanding balance on the line of credit was $ 0 as of January 31, 2022 and October 31, 2021. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jan. 31, 2022 | |
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 significant or potential significance, to our Consolidated Financial Statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jan. 31, 2022 | |
NET INCOME PER SHARE: | |
EARNINGS PER SHARE | NOTE 13 – EARNINGS PER SHARE SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2022 2021 Numerator: Net Income $ 1,217,248 $ 1,128,844 Denominator: Basic weighted average common shares outstanding 10,857,195 10,751,881 Unvested portion of options and restricted stock awards 539,666 557,000 Diluted outstanding shares 11,396,861 11,308,881 Net Income per share Basic $ 0.11 $ 0.10 Diluted $ 0.11 $ 0.10 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 |
SEGMENT ANALYSIS
SEGMENT ANALYSIS | 3 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT ANALYSIS | NOTE 14 - SEGMENT ANALYSIS Based on the fundamental difference in the types of 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; diver management system; 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. There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes. The following table summarizes segment asset and operating balances by reportable segment as of and for the three months ended January 31, 2022, and 2021, respectively. The Company’s reportable business segments sell their goods and services in four geographic locations: ● Americas ● Europe ● Australia/Asia ● Middle East/Africa CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 NOTE 14 -SEGMENT ANALYSIS (Continued) SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Marine Overhead Total Three Months Ended January 31, 2022 Net Revenues $ 3,823,748 $ 2,014,460 $ - $ 5,838,208 Cost of Revenues 572,292 1,105,982 - 1,678,274 Gross Profit 3,251,456 908,478 - 4,159,934 Research & Development 529,375 143,515 - 672,890 Selling, General & Administrative 753,614 651,149 706,349 2,111,112 Total Operating Expenses 1,282,989 794,664 706,349 2,784,002 Income (Loss) from Operations 1,968,467 113,814 (706,349 ) 1,375,932 Other Income (Expense) Other Income 9,049 70,945 - 79,994 Interest Expense (4,882 ) (5,026 ) (1,370 ) (11,278 ) Total Other Income (Expense) 4,167 65,919 (1,370 ) 68,716 Income (Loss) before Income Taxes 1,972,634 179,733 (707,719 ) 1,444,648 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (266,520 ) 24,036 (43,125 ) (285,609 ) Deferred Tax Benefit 6,708 204 51,297 58,209 Total Income Tax (Expense) Benefit (259,812 ) 24,240 8,172 (227,400 ) Net Income (Loss) $ 1,712,822 $ 203,973 $ (699,547 ) $ 1,217,248 Supplemental Disclosures Total Assets $ 30,847,114 $ 13,893,382 $ 658,735 $ 45,399,231 Total Liabilities $ 1,635,666 $ 501,339 $ 429,580 $ 2,566,585 Revenues from Intercompany Sales - eliminated from sales above $ 389,395 $ 115,823 $ 600,000 $ 1,105,218 Depreciation and Amortization $ 135,658 $ 16,657 $ 9,151 $ 161,466 Purchases of Long-lived Assets $ 986,093 $ 1,000 $ 14,871 $ 1,001,964 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 NOTE 14 -SEGMENT ANALYSIS (Continued) Marine Marine Overhead Total Three Months Ended January 31, 2021 Net Revenues $ 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 - 92,025 Interest Expense (2,253 ) (5,151 ) (7,110 ) (14,514 ) Total Other Income (Expense) (217 ) (5,133 ) (7,110 ) 77,511 Income (Loss) before Income Taxes 1,678,218 (253,169 ) (519,092 ) 995,928 Income Tax (Expense) Benefit Current Tax (Expense) Benefit 12,653 - 12,072 24,725 Deferred Tax (Expense) Benefit (11,155 ) 152,086 (32,740 ) 108,191 Total Income Tax (Expense) Benefit 1,498 152,086 (20,668 ) 132,916 Net Income (Loss) $ 1,679,716 $ (101,083 ) $ (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 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 3 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
DISAGGREGATION OF REVENUE | NOTE 15 – DISAGGREGATION OF REVENUE SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION For the Three Months Ended January 31, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 2,057,668 $ 1,204,282 $ 3,261,950 Europe 491,016 810,178 1,301,194 Australia/Asia 815,084 - 815,084 Middle East/Africa 459,980 - 459,980 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 Major Goods/Service Lines Equipment Sales $ 1,958,845 $ 436,864 $ 2,395,709 Equipment Rentals 630,468 - 630,468 Software Sales 304,796 - 304,796 Engineering Parts - 1,300,618 1,300,618 Services 929,639 276,978 1,206,617 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 Goods transferred at a point in time $ 2,263,641 $ 436,866 $ 2,724,343 Services transferred over time 1,560,107 1,577,594 3,113,865 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets 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 Revenues $ 3,748,279 $ 1,302,180 $ 5,050,459 Major Goods/Service Lines Equipment Sales $ 2,793,487 $ 220,957 $ 3,014,444 Equipment Rentals 334,363 - 334,363 Software Sales 225,222 - 225,222 Engineering Parts - 856,347 856,347 Services 395,207 224,876 620,083 Total Revenues $ 3,748,279 $ 1,302,180 $ 5,050,459 Goods transferred at a point in time $ 3,056,037 $ 220,957 $ 3,276,994 Services transferred over time 692,242 1,081,223 1,773,465 Total Revenues $ 3,748,279 $ 1,302,180 $ 5,050,459 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 |
COVID-19
COVID-19 | 3 Months Ended |
Jan. 31, 2022 | |
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 UK. 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 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. Additionally, the Company is subject to flow downs from prime defense contractors under Defense Federal Acquisition Regulation Supplement (“DFARS”). Recent flow-down entailed Executive Order 14042 which mandates the vaccination of all staff. We may not be able to enforce mandatory vaccination resulting in losing key staff members, thus impacting on our ability to provide contractual engineering services. Further, the Pandemic may continue to affect the Company’s results of operation, financial position, and liquidity. 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. Furthermore, it is critical for the Marine Technology Business to have in-person engagement with customers for the demonstration of its products from a vessel at sea. The restriction on global travel has resulted in significantly less customer engagement which affects the demand for its goods and services. These disruptions continue to impact the business. Particularly, its ability to perform sustained and meaningful business development and marketing activities, which require demonstrations at sea at customer locations. Asia which is a significant region for our solutions and products, still has strict restrictions as they relate to foreigners entering these countries. These restrictions cumulatively affect demand for our goods and services. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17 – INCOME TAXES The Company’s effective tax rate for the three months ended January 31, 2022, and 2021, was 16.0 % and ( 11.8 %) respectively. The increase in the effective tax rate for the three months ended January 31, 2022, as compared to January 31, 2021, resulted from the US companies becoming tax paying entities having used up their net operating loss carry-forwards. |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF INVENTORY | Inventory is stated at the lower of cost (First in, First Out method) or net realizable value. Inventory consisted of the following components: SCHEDULE OF COMPONENTS OF INVENTORY January 31, October 31, 2022 2021 Raw materials and parts $ 7,926,535 $ 7,525,419 Work in progress 793,246 919,619 Finished goods 2,440,017 2,246,139 Total Inventory $ 11,159,798 $ 10,691,177 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following as of: SCHEDULE OF PROPERTY AND EQUIPMENT January 31, October 31, 2022 2021 Buildings $ 6,019,236 $ 5,298,028 Land 200,000 200,000 Office machinery and equipment 1,666,436 1,622,871 Rental assets 2,427,189 2,326,486 Furniture, fixtures and improvements 1,206,402 1,218,217 Totals 11,519,263 10,665,602 Less: accumulated depreciation (4,775,593 ) (4,628,501 ) Total Property and Equipment, net $ 6,743,670 $ 6,037,101 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SUMMARY OF OTHER CURRENT ASSETS | Other current assets consisted of the following as of: SUMMARY OF OTHER CURRENT ASSETS January 31, October 31, 2022 2021 Deposits $ 32,280 $ 63,992 Other Tax Receivables 43,156 - Employee Retention Credit Receivables 576,288 563,627 Total Other Current Assets $ 651,724 $ 627,619 |
NOTE PAYABLE (Tables)
NOTE PAYABLE (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF NOTE PAYABLE | SCHEDULE OF NOTE PAYABLE January 31, October 31, 2022 2021 Secured note payable to HSBC NA with interest payable on the 28 th 4.56 % per annum. Our monthly repayment obligation under this loan is $ 43,777 (comprising both principal and interest repayment). The maturity of this Loan was December 28, 2021 $ - $ 63,559 Total - 63,559 Less: current portion - (63,559 ) Total Long Term Note Payable $ - $ - |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
NET INCOME PER SHARE: | |
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED | SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2022 2021 Numerator: Net Income $ 1,217,248 $ 1,128,844 Denominator: Basic weighted average common shares outstanding 10,857,195 10,751,881 Unvested portion of options and restricted stock awards 539,666 557,000 Diluted outstanding shares 11,396,861 11,308,881 Net Income per share Basic $ 0.11 $ 0.10 Diluted $ 0.11 $ 0.10 |
SEGMENT ANALYSIS (Tables)
SEGMENT ANALYSIS (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION | SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Marine Overhead Total Three Months Ended January 31, 2022 Net Revenues $ 3,823,748 $ 2,014,460 $ - $ 5,838,208 Cost of Revenues 572,292 1,105,982 - 1,678,274 Gross Profit 3,251,456 908,478 - 4,159,934 Research & Development 529,375 143,515 - 672,890 Selling, General & Administrative 753,614 651,149 706,349 2,111,112 Total Operating Expenses 1,282,989 794,664 706,349 2,784,002 Income (Loss) from Operations 1,968,467 113,814 (706,349 ) 1,375,932 Other Income (Expense) Other Income 9,049 70,945 - 79,994 Interest Expense (4,882 ) (5,026 ) (1,370 ) (11,278 ) Total Other Income (Expense) 4,167 65,919 (1,370 ) 68,716 Income (Loss) before Income Taxes 1,972,634 179,733 (707,719 ) 1,444,648 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (266,520 ) 24,036 (43,125 ) (285,609 ) Deferred Tax Benefit 6,708 204 51,297 58,209 Total Income Tax (Expense) Benefit (259,812 ) 24,240 8,172 (227,400 ) Net Income (Loss) $ 1,712,822 $ 203,973 $ (699,547 ) $ 1,217,248 Supplemental Disclosures Total Assets $ 30,847,114 $ 13,893,382 $ 658,735 $ 45,399,231 Total Liabilities $ 1,635,666 $ 501,339 $ 429,580 $ 2,566,585 Revenues from Intercompany Sales - eliminated from sales above $ 389,395 $ 115,823 $ 600,000 $ 1,105,218 Depreciation and Amortization $ 135,658 $ 16,657 $ 9,151 $ 161,466 Purchases of Long-lived Assets $ 986,093 $ 1,000 $ 14,871 $ 1,001,964 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 NOTE 14 -SEGMENT ANALYSIS (Continued) Marine Marine Overhead Total Three Months Ended January 31, 2021 Net Revenues $ 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 - 92,025 Interest Expense (2,253 ) (5,151 ) (7,110 ) (14,514 ) Total Other Income (Expense) (217 ) (5,133 ) (7,110 ) 77,511 Income (Loss) before Income Taxes 1,678,218 (253,169 ) (519,092 ) 995,928 Income Tax (Expense) Benefit Current Tax (Expense) Benefit 12,653 - 12,072 24,725 Deferred Tax (Expense) Benefit (11,155 ) 152,086 (32,740 ) 108,191 Total Income Tax (Expense) Benefit 1,498 152,086 (20,668 ) 132,916 Net Income (Loss) $ 1,679,716 $ (101,083 ) $ (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 |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION | SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION For the Three Months Ended January 31, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 2,057,668 $ 1,204,282 $ 3,261,950 Europe 491,016 810,178 1,301,194 Australia/Asia 815,084 - 815,084 Middle East/Africa 459,980 - 459,980 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 Major Goods/Service Lines Equipment Sales $ 1,958,845 $ 436,864 $ 2,395,709 Equipment Rentals 630,468 - 630,468 Software Sales 304,796 - 304,796 Engineering Parts - 1,300,618 1,300,618 Services 929,639 276,978 1,206,617 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 Goods transferred at a point in time $ 2,263,641 $ 436,866 $ 2,724,343 Services transferred over time 1,560,107 1,577,594 3,113,865 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2022 and October 31, 20 21 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Three Months Ended January 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets 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 Revenues $ 3,748,279 $ 1,302,180 $ 5,050,459 Major Goods/Service Lines Equipment Sales $ 2,793,487 $ 220,957 $ 3,014,444 Equipment Rentals 334,363 - 334,363 Software Sales 225,222 - 225,222 Engineering Parts - 856,347 856,347 Services 395,207 224,876 620,083 Total Revenues $ 3,748,279 $ 1,302,180 $ 5,050,459 Goods transferred at a point in time $ 3,056,037 $ 220,957 $ 3,276,994 Services transferred over time 692,242 1,081,223 1,773,465 Total Revenues $ 3,748,279 $ 1,302,180 $ 5,050,459 |
REVENUE RECOGNITION (Details Na
REVENUE RECOGNITION (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 | |
Revenue Recognition | |||
Deferred Sales Commission | $ 0 | $ 0 | |
Amortization of Deferred Sales Commissions | $ 0 | $ 3,884 |
SCHEDULE OF COMPONENTS OF INVEN
SCHEDULE OF COMPONENTS OF INVENTORY (Details) - USD ($) | Jan. 31, 2022 | Oct. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 7,926,535 | $ 7,525,419 |
Work in progress | 793,246 | 919,619 |
Finished goods | 2,440,017 | 2,246,139 |
Total Inventory | $ 11,159,798 | $ 10,691,177 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jan. 31, 2022 | Oct. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Totals | $ 11,519,263 | $ 10,665,602 |
Less: accumulated depreciation | (4,775,593) | (4,628,501) |
Total Property and Equipment, net | 6,743,670 | 6,037,101 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | 6,019,236 | 5,298,028 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | 200,000 | 200,000 |
Office Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | 1,666,436 | 1,622,871 |
Rental Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | 2,427,189 | 2,326,486 |
Furniture Fixtures And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | $ 1,206,402 | $ 1,218,217 |
SUMMARY OF OTHER CURRENT ASSETS
SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) | Jan. 31, 2022 | Oct. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 32,280 | $ 63,992 |
Other Tax Receivables | 43,156 | |
Employee Retention Credit Receivables | 576,288 | 563,627 |
Total Other Current Assets | $ 651,724 | $ 627,619 |
CONTRACTS IN PROGESS (Details N
CONTRACTS IN PROGESS (Details Narrative) - USD ($) | Jan. 31, 2022 | Oct. 31, 2021 |
Contracts In Progess | ||
Unbilled Receivables, Current | $ 401,661 | $ 1,080,384 |
Contract with Customer, Liability | 1,151,451 | 1,879,790 |
Deferred revenue inclusive of extended warranty sales | $ 289,956 | $ 277,937 |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 | |
Concentration Risk [Line Items] | |||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 1,535,682 | $ 4,207,996 | |
Two Customers [Member] | Revenue Benchmark [Member] | |||
Concentration Risk [Line Items] | |||
Proceeds from Customers | $ 1,855,731 | $ 1,303,807 | |
Two Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 32.00% | 26.00% | |
Two Customers [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 862,850 | ||
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 46.00% |
SCHEDULE OF NOTE PAYABLE (Detai
SCHEDULE OF NOTE PAYABLE (Details) (Parenthetical) - Secured Debt [Member] | 12 Months Ended |
Oct. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate During Period | 4.56% |
Debt Instrument, Periodic Payment | $ 43,777 |
Debt Instrument, Maturity Date | Dec. 28, 2021 |
SCHEDULE OF NOTE PAYABLE (Det_2
SCHEDULE OF NOTE PAYABLE (Details) - USD ($) | Jan. 31, 2022 | Oct. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 63,559 | |
Less: current portion | (63,559) | |
Total Long Term Notes Payable | ||
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 63,559 |
NOTE PAYABLE (Details Narrative
NOTE PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Oct. 31, 2021 | Nov. 27, 2019 | |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 0 | $ 0 | |
HSBC [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 |
SCHEDULE OF EARNINGS PER SHARE
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
NET INCOME PER SHARE: | ||
Net Income | $ 1,217,248 | $ 1,128,844 |
Basic weighted average common shares outstanding | 10,857,195 | 10,751,881 |
Unvested portion of options and restricted stock awards | 539,666 | 557,000 |
Diluted outstanding shares | 11,396,861 | 11,308,881 |
Net Income per share | ||
Basic | $ 0.11 | $ 0.10 |
Diluted | $ 0.11 | $ 0.10 |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net Revenues | $ 5,838,208 | $ 5,050,459 |
Cost of Revenues | 1,678,274 | 1,735,537 |
Gross Profit | 4,159,934 | 3,314,922 |
Research & Development | 672,890 | 583,139 |
Selling, General & Administrative | 2,111,112 | 1,813,366 |
Total Operating Expenses | 2,784,002 | 2,396,505 |
INCOME FROM OPERATIONS | 1,375,932 | 918,417 |
Other Income | 79,994 | 92,025 |
Interest Expense | (11,278) | (14,514) |
Total Other Income | 68,716 | 77,511 |
INCOME BEFORE INCOME TAX EXPENSE | 1,444,648 | 995,928 |
Current Tax (Expense) Benefit | (285,609) | 24,725 |
Deferred Tax (Expense) Benefit | 58,209 | 108,191 |
Total Income Tax (Expense) Benefit | (227,400) | 132,916 |
NET INCOME | 1,217,248 | 1,128,844 |
Total Assets | 45,399,231 | |
Total Liabilities | 2,566,585 | |
Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 5,838,208 | 5,050,459 |
Cost of Revenues | 1,678,274 | 1,735,537 |
Gross Profit | 4,159,934 | 3,314,922 |
Research & Development | 672,890 | 583,139 |
Selling, General & Administrative | 2,111,112 | 1,813,366 |
Total Operating Expenses | 2,784,002 | 2,396,505 |
INCOME FROM OPERATIONS | 1,375,932 | 918,417 |
Other Income | 79,994 | 92,025 |
Interest Expense | (11,278) | (14,514) |
Total Other Income | 68,716 | 77,511 |
INCOME BEFORE INCOME TAX EXPENSE | 1,444,648 | 995,928 |
Current Tax (Expense) Benefit | (285,609) | 24,725 |
Deferred Tax (Expense) Benefit | 58,209 | 108,191 |
Total Income Tax (Expense) Benefit | (227,400) | 132,916 |
NET INCOME | 1,217,248 | 1,128,844 |
Total Assets | 45,399,231 | 40,355,522 |
Total Liabilities | 2,566,585 | 3,730,350 |
Revenues from Intercompany Sales - eliminated from sales above | 1,105,218 | 1,094,830 |
Depreciation and Amortization | 161,466 | 366,183 |
Purchases of Long-lived Assets | 1,001,964 | 409,144 |
Marine Technology Business Products [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 3,823,748 | 3,748,279 |
Cost of Revenues | 572,292 | 894,275 |
Gross Profit | 3,251,456 | 2,854,004 |
Research & Development | 529,375 | 441,744 |
Selling, General & Administrative | 753,614 | 733,825 |
Total Operating Expenses | 1,282,989 | 1,175,569 |
INCOME FROM OPERATIONS | 1,968,467 | 1,678,435 |
Other Income | 9,049 | 2,036 |
Interest Expense | (4,882) | (2,253) |
Total Other Income | 4,167 | (217) |
INCOME BEFORE INCOME TAX EXPENSE | 1,972,634 | 1,678,218 |
Current Tax (Expense) Benefit | (266,520) | 12,653 |
Deferred Tax (Expense) Benefit | 6,708 | (11,155) |
Total Income Tax (Expense) Benefit | (259,812) | 1,498 |
NET INCOME | 1,712,822 | 1,679,716 |
Total Assets | 30,847,114 | 24,767,757 |
Total Liabilities | 1,635,666 | 1,573,260 |
Revenues from Intercompany Sales - eliminated from sales above | 389,395 | 370,629 |
Depreciation and Amortization | 135,658 | 312,122 |
Purchases of Long-lived Assets | 986,093 | 399,975 |
Marine Engineering Business Services [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 2,014,460 | 1,302,180 |
Cost of Revenues | 1,105,982 | 841,262 |
Gross Profit | 908,478 | 460,918 |
Research & Development | 143,515 | 141,395 |
Selling, General & Administrative | 651,149 | 567,559 |
Total Operating Expenses | 794,664 | 708,954 |
INCOME FROM OPERATIONS | 113,814 | (248,036) |
Other Income | 70,945 | 18 |
Interest Expense | (5,026) | (5,151) |
Total Other Income | 65,919 | (5,133) |
INCOME BEFORE INCOME TAX EXPENSE | 179,733 | (253,169) |
Current Tax (Expense) Benefit | 24,036 | |
Deferred Tax (Expense) Benefit | 204 | 152,086 |
Total Income Tax (Expense) Benefit | 24,240 | 152,086 |
NET INCOME | 203,973 | (101,083) |
Total Assets | 13,893,382 | 14,362,811 |
Total Liabilities | 501,339 | 1,436,624 |
Revenues from Intercompany Sales - eliminated from sales above | 115,823 | 49,201 |
Depreciation and Amortization | 16,657 | 47,645 |
Purchases of Long-lived Assets | 1,000 | 4,177 |
Overhead [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | ||
Cost of Revenues | ||
Gross Profit | ||
Research & Development | ||
Selling, General & Administrative | 706,349 | 511,982 |
Total Operating Expenses | 706,349 | 511,982 |
INCOME FROM OPERATIONS | (706,349) | (511,982) |
Other Income | ||
Interest Expense | (1,370) | (7,110) |
Total Other Income | (1,370) | (7,110) |
INCOME BEFORE INCOME TAX EXPENSE | (707,719) | (519,092) |
Current Tax (Expense) Benefit | (43,125) | 12,072 |
Deferred Tax (Expense) Benefit | 51,297 | (32,740) |
Total Income Tax (Expense) Benefit | 8,172 | (20,668) |
NET INCOME | (699,547) | (539,760) |
Total Assets | 658,735 | 1,224,954 |
Total Liabilities | 429,580 | 720,466 |
Revenues from Intercompany Sales - eliminated from sales above | 600,000 | 675,000 |
Depreciation and Amortization | 9,151 | 6,416 |
Purchases of Long-lived Assets | $ 14,871 | $ 4,992 |
SEGMENT ANALYSIS (Details Narra
SEGMENT ANALYSIS (Details Narrative) | 3 Months Ended |
Jan. 31, 2022Integer | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
SCHEDULE OF DISAGGREGATE OF REV
SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 5,838,208 | $ 5,050,459 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,724,343 | 3,276,994 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,113,865 | 1,773,465 |
Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,395,709 | 3,014,444 |
Equipment Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 630,468 | 334,363 |
Software Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 304,796 | 225,222 |
Engineering Parts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,300,618 | 856,347 |
Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,206,617 | 620,083 |
Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,823,748 | 3,748,279 |
Marine Technology Business Products [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,263,641 | 3,056,037 |
Marine Technology Business Products [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,560,107 | 692,242 |
Marine Technology Business Products [Member] | Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,958,845 | 2,793,487 |
Marine Technology Business Products [Member] | Equipment Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 630,468 | 334,363 |
Marine Technology Business Products [Member] | Software Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 304,796 | 225,222 |
Marine Technology Business Products [Member] | Engineering Parts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | ||
Marine Technology Business Products [Member] | Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 929,639 | 395,207 |
Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,014,460 | 1,302,180 |
Marine Engineering Business Services [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 436,866 | 220,957 |
Marine Engineering Business Services [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,577,594 | 1,081,223 |
Marine Engineering Business Services [Member] | Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 436,864 | 220,957 |
Marine Engineering Business Services [Member] | Equipment Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | ||
Marine Engineering Business Services [Member] | Software Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | ||
Marine Engineering Business Services [Member] | Engineering Parts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,300,618 | 856,347 |
Marine Engineering Business Services [Member] | Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 276,978 | 224,876 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,261,950 | 1,065,719 |
Americas [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,057,668 | 549,278 |
Americas [Member] | Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,204,282 | 516,441 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,301,194 | 1,910,851 |
Europe [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 491,016 | 1,125,112 |
Europe [Member] | Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 810,178 | 785,739 |
Australia/Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 815,084 | 2,008,210 |
Australia/Asia [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 815,084 | 2,008,210 |
Australia/Asia [Member] | Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | ||
Middle East/Africa [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 459,980 | 65,679 |
Middle East/Africa [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 459,980 | 65,679 |
Middle East/Africa [Member] | Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 16.00% | 11.80% |