Cover
Cover - shares | 3 Months Ended | |
Jan. 31, 2023 | Mar. 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
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 | 11,020,167 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jan. 31, 2023 | Oct. 31, 2022 |
CURRENT ASSETS | ||
Cash | $ 24,522,383 | $ 22,927,371 |
Accounts Receivable, net | 3,142,879 | 2,870,600 |
Inventory | 11,177,386 | 10,027,111 |
Unbilled Receivables | 650,774 | 602,115 |
Prepaid Expenses | 381,011 | 240,464 |
Other Current Assets | 431,807 | 343,061 |
Total Current Assets | 40,306,240 | 37,010,722 |
FIXED ASSETS | ||
Property and Equipment, net | 6,071,611 | 5,832,532 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,830,437 | 3,824,394 |
Deferred Tax Asset | 295,817 | 259,810 |
Total Other Assets | 4,126,254 | 4,084,204 |
Total Assets | 50,504,105 | 46,927,458 |
CURRENT LIABILITIES | ||
Accounts Payable | 1,414,610 | 793,247 |
Accrued Expenses and Other Current Liabilities | 1,612,168 | 1,731,706 |
Deferred Revenue | 805,045 | 943,569 |
Total Current Liabilities | 3,831,823 | 3,468,522 |
LONG TERM LIABILITIES | ||
Deferred Revenue, less current portion | 101,813 | 76,127 |
Total Liabilities | 3,933,636 | 3,544,649 |
STOCKHOLDERS’ EQUITY | ||
Common Stock, $.001 par value; 150,000,000 shares authorized, 10,942,353 issued and outstanding as of January 31, 2023 and 10,916,853 shares issued and outstanding as of October 31, 2022 | 10,943 | 10,918 |
Treasury Stock | (28,337) | (28,337) |
Additional Paid-in Capital | 62,496,116 | 62,313,988 |
Accumulated Other Comprehensive Loss | (3,129,474) | (4,737,124) |
Accumulated Deficit | (12,778,779) | (14,176,636) |
Total Stockholders’ Equity | 46,570,469 | 43,382,809 |
Total Liabilities and Stockholders’ Equity | $ 50,504,105 | $ 46,927,458 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2023 | Oct. 31, 2022 |
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 | 10,942,353 | 10,916,853 |
Common stock, shares outstanding | 10,942,353 | 10,916,853 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Income Statement [Abstract] | ||
Net Revenues | $ 5,596,284 | $ 5,838,208 |
Cost of Revenues | 1,843,279 | 1,678,274 |
Gross Profit | 3,753,005 | 4,159,934 |
OPERATING EXPENSES | ||
Research & Development | 444,458 | 672,890 |
Selling, General & Administrative | 1,962,451 | 2,111,112 |
Total Operating Expenses | 2,406,909 | 2,784,002 |
INCOME FROM OPERATIONS | 1,346,096 | 1,375,932 |
OTHER INCOME (EXPENSE) | ||
Other Income | 15,765 | 79,994 |
Interest Expense | (11,278) | |
Total Other Income | 15,765 | 68,716 |
INCOME BEFORE INCOME TAX EXPENSE | 1,361,861 | 1,444,648 |
INCOME TAX (EXPENSE) BENEFIT | ||
Current Tax Expense | (11) | (285,609) |
Deferred Tax Benefit | 36,007 | 58,209 |
Total Income Tax Expense | 35,996 | (227,400) |
NET INCOME | $ 1,397,857 | $ 1,217,248 |
NET INCOME PER SHARE: | ||
Basic | $ 0.13 | $ 0.11 |
Diluted | $ 0.12 | $ 0.11 |
WEIGHTED AVERAGE SHARES: | ||
Basic | 10,946,683 | 10,857,195 |
Diluted | 11,379,356 | 11,396,861 |
Foreign Currency Translation Adjustment | $ 1,607,650 | $ 241,150 |
Total Other Comprehensive Income | 1,607,650 | 241,150 |
COMPREHENSIVE INCOME | $ 3,005,507 | $ 1,458,398 |
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] | Treasury Stock [Member] | Total |
Beginning balance 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 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 | |||||
Beginning balance at Oct. 31, 2022 | $ 10,918 | 62,313,988 | (4,737,124) | (14,176,636) | (28,337) | 43,382,809 |
Beginning balance, shares at Oct. 31, 2022 | 10,916,853 | |||||
Employee stock-based compensation | 182,153 | 182,153 | ||||
Foreign currency translation adjustment | 1,607,650 | 1,607,650 | ||||
Net Income | 1,397,857 | 1,397,857 | ||||
Stock issued from options exercised | $ 25 | (25) | ||||
Stock issued from options exercised, shares | 25,500 | |||||
Ending balance at Jan. 31, 2023 | $ 10,943 | $ 62,496,116 | $ (3,129,474) | $ (12,778,779) | $ (28,337) | $ 46,570,469 |
Ending balance, shares at Jan. 31, 2023 | 10,942,353 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,397,857 | $ 1,217,248 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 164,007 | 161,466 |
Stock-based compensation | 182,153 | 325,175 |
Deferred income taxes | (36,007) | (9,750) |
(Increase) decrease in operating assets: | ||
Accounts receivable | (161,980) | 2,608,920 |
Inventory | (602,467) | (613,670) |
Unbilled receivables | (37,958) | 675,179 |
Prepaid expenses | (128,140) | 863,618 |
Other current assets | (84,586) | (26,093) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | 446,526 | (1,047,139) |
Deferred revenue | (154,519) | (693,455) |
Net Cash Provided by Operating Activities | 984,886 | 3,461,499 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (84,422) | (987,093) |
Purchases of other intangible assets | (21,485) | (14,871) |
Net Cash Used in Investing Activities | (105,907) | (1,001,964) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of notes | (63,559) | |
Net Cash Used in Financing Activities | (63,559) | |
EFFECT OF CURRENCY TRANSLATION ON CHANGES IN CASH | 716,033 | 567,596 |
NET INCREASE IN CASH | 1,595,012 | 2,963,572 |
CASH AT THE BEGINNING OF THE PERIOD | 22,927,371 | 17,747,656 |
CASH AT THE END OF THE PERIOD | 24,522,383 | 20,711,228 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 11,278 | |
Cash paid for taxes | $ 51,264 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Jan. 31, 2023 | |
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 (also referred to in this Form 10-Q as “Products Business,” or “Products Segment”) and the Marine Engineering Business (also referred to in this Form 10-Q as “Services Business”, “Engineering Business” or “Services Segment”). The Marine Technology Business sells technology solutions to the subsea and underwater markets. These solutions are designed, developed, manufactured and supported by the Company. Its main revenue generating product is the Echoscope ® ® “ ” plans for the Company. - sub- The consolidated financial statements include the accounts of Coda Octopus Group, Inc. and its wholly-owned domestic and foreign subsidiaries. All significant intercompany transactions and balances have been eliminated in the consolidated financial 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. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Jan. 31, 2023 | |
Revenue Recognition | |
REVENUE RECOGNITION | NOTE 2 – REVENUE RECOGNITION The Company recognizes revenue in accordance with 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: ● Identify the contract with the customer; ● Identify the performance obligations in the contract with customer; ● Determine the transaction price; ● Allocate the transaction price to performance obligations; and ● Recognize revenue when (or as) a performance obligation is satisfied. Our revenues are earned under formal contracts with our customers. These are derived from both sales and rental of underwater technologies and equipment for real time 3D imaging, mapping, defense and survey applications by the Marine Technology Business and from engineering services which the Company’s Services Business provide via sub-contracts primarily with 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, 2023 and October 31, 2022 NOTE 2 – REVENUE RECOGNITION (Continued) Regarding our Marine Technology Business (“Products Business”), all 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, customization of our technology for bespoke application, 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 performed 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 a relative standalone selling price basis and recognize revenue when performance obligations are met including when equipment is delivered, and for rental of equipment, when installation , training prescribed by the contract Our contracts sometimes require customer payments in advance of revenue recognition. 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 by the provision of the activation codes to 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 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, 2023 and October 31, 2022 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. Other Revenue Disclosures See Notes 14 and 15 – Segment Analysis and Disaggregation of Revenue. These Notes provide disclosure of our revenue by segment (Products Business versus Services Business); revenues from external customers and cost of those revenues; and split of revenue by geography including within and outside the USA |
COST OF GOODS SOLD
COST OF GOODS SOLD | 3 Months Ended |
Jan. 31, 2023 | |
Cost Of Goods Sold | |
COST OF GOODS SOLD | NOTE 3 – COST OF GOODS SOLD Our Cost of goods sold includes the cost of materials and related direct costs. With respect to sales made through the Company’s sales agents distribution network, we include in our costs of goods sold commissions paid to agents for the specific sales they make. Without using agents, we would not be eligible to participate in the Request for Proposals (“RFP”) for these sales on which we incur commission costs. All other sales-related expenses, including those related to unsuccessful bids, are included in selling, general and administrative costs. As a component of Cost of Goods Sold, commission in the 3 months period ended January 31, 2023 was $ 505,376 138,372 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments include cash, accounts receivable, accounts payable, and accrued expenses. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair values because of the short-term nature of these instruments. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 |
FOREIGN CURRENCY TRANSLATION
FOREIGN CURRENCY TRANSLATION | 3 Months Ended |
Jan. 31, 2023 | |
Foreign Currency [Abstract] | |
FOREIGN CURRENCY TRANSLATION | NOTE 5 – 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 is |
INVENTORY
INVENTORY | 3 Months Ended |
Jan. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 6 – INVENTORY Inventory is stated at the lower of cost (First in, First Out method) or net realizable value. Inventory consisted of the following components as of: SCHEDULE OF COMPONENTS OF INVENTORY January 31, October 31, 2023 2022 Raw materials and parts $ 8,072,400 $ 7,219,344 Work in progress 527,401 383,427 Finished goods 2,577,585 2,424,340 Total Inventory $ 11,177,386 $ 10,027,111 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Jan. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 7 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of: SCHEDULE OF PROPERTY AND EQUIPMENT January 31, October 31, 2023 2022 Buildings $ 5,701,653 $ 5,419,946 Land 200,000 200,000 Office machinery and equipment 1,676,401 1,556,030 Rental assets 2,396,579 2,252,292 Furniture, fixtures and improvements 1,164,560 1,108,787 Total 11,139,193 10,537,055 Less: accumulated depreciation (5,067,582 ) (4,704,523 ) Total Property and Equipment, net $ 6,071,611 $ 5,832,532 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 3 Months Ended |
Jan. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 8 – OTHER CURRENT ASSETS Other current assets consisted of the following as of: SUMMARY OF OTHER CURRENT ASSETS January 31, October 31, 2023 2022 Deposits $ 11,015 $ 18,631 Other Tax Receivables 267,579 151,217 Employee Retention Credit Receivables 153,213 173,213 Total Other Current Assets $ 431,807 $ 343,061 |
CONTRACTS IN PROGESS
CONTRACTS IN PROGESS | 3 Months Ended |
Jan. 31, 2023 | |
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 balance sheet date. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $ 650,774 602,115 Our Deferred Revenue of $ 673,158 790,458 N Sales of equipment include a separate performance obligation for warranty, which is treated as deferred revenue, along with extended warranty options which may be optionally purchased by the customer. These amounts are amortized over the relevant obligation period (12 months is our standard warranty or 24, 36 or 60 months for our extended warranty, sold as our Through Life Support (TLS) Package) from the date of delivery. These amounts are stated on the consolidated balance sheets as a component of Deferred Revenue and were $ 233,700 229,238 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended |
Jan. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 10 – CONCENTRATIONS Significant Customers During the three months ended January 31, 2023, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenue from these customers was $ 1,575,724 28% 836,315 27% During the three months ended January 31, 2022, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $ 1,855,731 32% |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jan. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 11 – 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, 2023 | |
NET INCOME PER SHARE: | |
EARNINGS PER SHARE | NOTE 12 – EARNINGS PER SHARE SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Three Months Ended Ended January 31, January 31, Fiscal Period 2023 2022 Numerator: Net Income $ 1,397,857 $ 1,217,248 Denominator: Basic weighted average common shares outstanding 10,946,683 10,857,195 Unused portion of options and restricted stock awards 432,673 539,666 Diluted outstanding shares 11,379,356 11,396,861 Net income per share Basic $ 0.13 $ 0.11 Diluted $ 0.12 $ 0.11 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 |
2017 STOCK INCENTIVE PLAN
2017 STOCK INCENTIVE PLAN | 3 Months Ended |
Jan. 31, 2023 | |
Stock Incentive Plan | |
2017 STOCK INCENTIVE PLAN | NOTE 13 – 2017 STOCK INCENTIVE PLAN 2017 Stock Incentive Plan On December 6, 2017, the Board of Directors adopted the 2017 Stock Incentive Plan (the “2017 Plan”). The purpose of the Plan is to advance the interests of the Company and its stockholders by enabling the Company and its subsidiaries to attract and retain qualified individuals through opportunities for equity participation in the Company, and to reward those individuals who contribute to the Company’s achievement of its economic objectives. The Plan was adopted subject to stockholders’ approval and was approved by Stockholders at the Company’s Annual General Meeting held on July 24, 2018. The maximum number of shares of Common Stock available for issuance under the 2017 Plan is 913,612 During the three months ended January 31, 2023, the Company granted to various eligible individuals restricted stock awards of 44,500 29,500 no there were 306,001 shares future issuance under 182,153 2021 Stock Incentive Plan On July 12, 2021, the Board of Directors adopted the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan was approved by the Company’s stockholders at its Annual General Meeting 1,000,000 The total number of shares available for issuance under the 2017 Plan and 2021 Plan is 1,306,001 |
SEGMENT ANALYSIS
SEGMENT ANALYSIS | 3 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT ANALYSIS | NOTE 14 – SEGMENT ANALYSIS Based on the fundamental difference in the types of offering, products and solutions versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Business” or “Products Segment”) operations are comprised primarily of sale and/or rental of underwater technology sonar solutions, products for underwater operations including hardware and software and support services and our diver management system. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provide 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 which have been eliminated in our financial statements but are disclosed in the tables below for information purposes. The following tables summarize segment asset and operating balances by reportable segment for the three months ended January 31, 2023 and 2022, 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, 2023 and October 31, 2022 NOTE 14 -SEGMENT ANALYSIS (Continued) SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2023 Net Revenues $ 3,824,159 $ 1,772,125 $ - $ 5,596,284 Cost of Revenues 1,064,244 779,035 - 1,843,279 Gross Profit 2,759,915 993,090 - 3,753,005 Research & Development 438,308 6,150 - 444,458 Selling, General & Administrative 661,759 646,310 654,382 1,962,451 Total Operating Expenses 1,100,067 652,460 654,382 2,406,909 Income (Loss) from Operations 1,659,848 340,630 (654,382 ) 1,346,096 Other Income Other Income 15,020 745 - 15,765 Total Other Income 15,020 745 - 15,765 Income (Loss) before Income Taxes 1,674,868 341,375 (654,382 ) 1,361,861 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (18,873 ) (19,856 ) 38,718 (11 ) Deferred Tax (Expense) Benefit - - 36,007 36,007 Total Income Tax (Expense) Benefit (18,873 ) (19,856 ) 74,725 35,996 Net Income (Loss) $ 1,655,995 $ 321,519 $ (579,657 ) $ 1,397,857 Supplemental Disclosures Total Assets $ 36,176,835 $ 13,377,560 $ 949,710 $ 50,504,105 Total Liabilities $ 2,694,766 $ 758,160 $ 480,710 $ 3,933,636 Revenues from Intercompany Sales - eliminated from sales above $ 829,674 $ 45,707 $ 680,000 $ 1,555,381 Depreciation and Amortization $ 128,838 $ 24,910 $ 10,259 $ 164,007 Purchases of Long-lived Assets $ 79,642 $ 4,780 $ 21,485 $ 105,907 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) 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 (Expense) 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, 2023 and October 31, 2022 |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 3 Months Ended |
Jan. 31, 2023 | |
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, 2023 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 486,293 $ 1,322,977 $ 1,809,270 Europe 696,410 449,148 1,145,558 Australia/Asia 2,432,428 - 2,432,428 Middle East/Africa 209,028 - 209,028 Total Revenues $ 3,824,159 $ 1,772,125 $ 5,596,284 Major Goods/Service Lines Equipment Sales $ 2,572,560 $ - $ 2,572,560 Equipment Rentals 265,903 - 265,903 Software Sales 417,170 - 417,170 Engineering Parts - 1,149,079 1,149,079 Services 568,526 623,046 1,191,572 Total Revenues $ 3,824,159 $ 1,772,125 $ 5,596,284 Goods transferred at a point in time $ 2,989,730 $ - $ 2,989,730 Services transferred over time 834,429 1,772,125 2,606,554 Total Revenues $ 3,824,159 $ 1,772,125 $ 5,596,284 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) 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 $ 1,709,901 $ 1,204,282 $ 2,914,183 Europe 838,783 810,178 1,648,961 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 $ 2,700,507 Services transferred over time 1,560,107 1,577,594 3,137,701 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 16 – INCOME TAXES The Company’s effective tax rate for the three months ended January 31, 2023, and 2022, was (2.6) % and 15.7 % respectively. We have been recording the US tax rate of 25 for the US companies. We have been recording the UK tax rate at 0.0% as we believe our R&D tax credits will offset any tax liability incurred. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jan. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS On February 1, 2023 (with HSBC NA) and February 15, 2023 (with Jyske Bank), respectively, the Company established certified deposit interest-bearing accounts with its current bankers. These interest-bearing accounts are for rolling fixed short-term periods not exceeding 3 months. The table below indicates the applicable interest rates and amounts which are held in certified deposit interest bearing accounts at the date hereof: SCHEDULE OF INTEREST RATES AND AMOUNTS HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS Currency Denomination Amount HSBC NA Jyske Bank USD $ 12,441,445.25 4.5 Euro € 665,000 1.3 % British Pound £ 414,000 2.65 % Danish Kroner DKK 2,850,000 0.91 % USD $ 819,000 3.41 % |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
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 as of: SCHEDULE OF COMPONENTS OF INVENTORY January 31, October 31, 2023 2022 Raw materials and parts $ 8,072,400 $ 7,219,344 Work in progress 527,401 383,427 Finished goods 2,577,585 2,424,340 Total Inventory $ 11,177,386 $ 10,027,111 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
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, 2023 2022 Buildings $ 5,701,653 $ 5,419,946 Land 200,000 200,000 Office machinery and equipment 1,676,401 1,556,030 Rental assets 2,396,579 2,252,292 Furniture, fixtures and improvements 1,164,560 1,108,787 Total 11,139,193 10,537,055 Less: accumulated depreciation (5,067,582 ) (4,704,523 ) Total Property and Equipment, net $ 6,071,611 $ 5,832,532 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
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, 2023 2022 Deposits $ 11,015 $ 18,631 Other Tax Receivables 267,579 151,217 Employee Retention Credit Receivables 153,213 173,213 Total Other Current Assets $ 431,807 $ 343,061 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
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 2023 2022 Numerator: Net Income $ 1,397,857 $ 1,217,248 Denominator: Basic weighted average common shares outstanding 10,946,683 10,857,195 Unused portion of options and restricted stock awards 432,673 539,666 Diluted outstanding shares 11,379,356 11,396,861 Net income per share Basic $ 0.13 $ 0.11 Diluted $ 0.12 $ 0.11 |
SEGMENT ANALYSIS (Tables)
SEGMENT ANALYSIS (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION | SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended January 31, 2023 Net Revenues $ 3,824,159 $ 1,772,125 $ - $ 5,596,284 Cost of Revenues 1,064,244 779,035 - 1,843,279 Gross Profit 2,759,915 993,090 - 3,753,005 Research & Development 438,308 6,150 - 444,458 Selling, General & Administrative 661,759 646,310 654,382 1,962,451 Total Operating Expenses 1,100,067 652,460 654,382 2,406,909 Income (Loss) from Operations 1,659,848 340,630 (654,382 ) 1,346,096 Other Income Other Income 15,020 745 - 15,765 Total Other Income 15,020 745 - 15,765 Income (Loss) before Income Taxes 1,674,868 341,375 (654,382 ) 1,361,861 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (18,873 ) (19,856 ) 38,718 (11 ) Deferred Tax (Expense) Benefit - - 36,007 36,007 Total Income Tax (Expense) Benefit (18,873 ) (19,856 ) 74,725 35,996 Net Income (Loss) $ 1,655,995 $ 321,519 $ (579,657 ) $ 1,397,857 Supplemental Disclosures Total Assets $ 36,176,835 $ 13,377,560 $ 949,710 $ 50,504,105 Total Liabilities $ 2,694,766 $ 758,160 $ 480,710 $ 3,933,636 Revenues from Intercompany Sales - eliminated from sales above $ 829,674 $ 45,707 $ 680,000 $ 1,555,381 Depreciation and Amortization $ 128,838 $ 24,910 $ 10,259 $ 164,007 Purchases of Long-lived Assets $ 79,642 $ 4,780 $ 21,485 $ 105,907 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) 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 (Expense) 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 |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
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, 2023 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 486,293 $ 1,322,977 $ 1,809,270 Europe 696,410 449,148 1,145,558 Australia/Asia 2,432,428 - 2,432,428 Middle East/Africa 209,028 - 209,028 Total Revenues $ 3,824,159 $ 1,772,125 $ 5,596,284 Major Goods/Service Lines Equipment Sales $ 2,572,560 $ - $ 2,572,560 Equipment Rentals 265,903 - 265,903 Software Sales 417,170 - 417,170 Engineering Parts - 1,149,079 1,149,079 Services 568,526 623,046 1,191,572 Total Revenues $ 3,824,159 $ 1,772,125 $ 5,596,284 Goods transferred at a point in time $ 2,989,730 $ - $ 2,989,730 Services transferred over time 834,429 1,772,125 2,606,554 Total Revenues $ 3,824,159 $ 1,772,125 $ 5,596,284 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements January 31, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) 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 $ 1,709,901 $ 1,204,282 $ 2,914,183 Europe 838,783 810,178 1,648,961 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 $ 2,700,507 Services transferred over time 1,560,107 1,577,594 3,137,701 Total Revenues $ 3,823,748 $ 2,014,460 $ 5,838,208 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Subsequent Events [Abstract] | |
SCHEDULE OF INTEREST RATES AND AMOUNTS HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS | SCHEDULE OF INTEREST RATES AND AMOUNTS HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS Currency Denomination Amount HSBC NA Jyske Bank USD $ 12,441,445.25 4.5 Euro € 665,000 1.3 % British Pound £ 414,000 2.65 % Danish Kroner DKK 2,850,000 0.91 % USD $ 819,000 3.41 % |
COST OF GOODS SOLD (Details Nar
COST OF GOODS SOLD (Details Narrative) - USD ($) | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Cost Of Goods Sold | ||
Cost of goods, sold | $ 505,376 | $ 138,372 |
SCHEDULE OF COMPONENTS OF INVEN
SCHEDULE OF COMPONENTS OF INVENTORY (Details) - USD ($) | Jan. 31, 2023 | Oct. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 8,072,400 | $ 7,219,344 |
Work in progress | 527,401 | 383,427 |
Finished goods | 2,577,585 | 2,424,340 |
Total Inventory | $ 11,177,386 | $ 10,027,111 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jan. 31, 2023 | Oct. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 11,139,193 | $ 10,537,055 |
Less: accumulated depreciation | (5,067,582) | (4,704,523) |
Total Property and Equipment, net | 6,071,611 | 5,832,532 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 5,701,653 | 5,419,946 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 200,000 | 200,000 |
Office Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,676,401 | 1,556,030 |
Rental Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,396,579 | 2,252,292 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,164,560 | $ 1,108,787 |
SUMMARY OF OTHER CURRENT ASSETS
SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) | Jan. 31, 2023 | Oct. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 11,015 | $ 18,631 |
Other Tax Receivables | 267,579 | 151,217 |
Employee Retention Credit Receivables | 153,213 | 173,213 |
Total Other Current Assets | $ 431,807 | $ 343,061 |
CONTRACTS IN PROGESS (Details N
CONTRACTS IN PROGESS (Details Narrative) - USD ($) | Jan. 31, 2023 | Oct. 31, 2022 |
Contracts In Progess | ||
Unbilled receivables | $ 650,774 | $ 602,115 |
Deferred revenue | 673,158 | 790,458 |
Deferred revenue inclusive of extended warranty options | $ 233,700 | $ 229,238 |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Oct. 31, 2022 | |
Concentration Risk [Line Items] | |||
Revenue | $ 5,596,284 | $ 5,838,208 | |
Accounts receivable | 3,142,879 | $ 2,870,600 | |
Two Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Revenue | $ 1,575,724 | $ 1,855,731 | |
Concentration risk, percentage | 28% | 32% | |
Two Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 27% | ||
Accounts receivable | $ 836,315 |
SCHEDULE OF EARNINGS PER SHARE
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
NET INCOME PER SHARE: | ||
Net Income | $ 1,397,857 | $ 1,217,248 |
Basic weighted average common shares outstanding | 10,946,683 | 10,857,195 |
Unused portion of options and restricted stock awards | 432,673 | 539,666 |
Diluted outstanding shares | 11,379,356 | 11,396,861 |
Basic | $ 0.13 | $ 0.11 |
Diluted | $ 0.12 | $ 0.11 |
2017 STOCK INCENTIVE PLAN (Deta
2017 STOCK INCENTIVE PLAN (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2023 | Jul. 12, 2021 | Dec. 06, 2017 | |
2017 Stock Incentive Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Common stock available for issuance | 306,001 | ||
Restricted common stock shares awards | 44,500 | ||
Restricted stock awards vested | 29,500 | ||
Options forfeited | 0 | ||
Share based compensation expenses | $ 182,153 | ||
2017 Stock Incentive Plan [Member] | Board of Director [Member] | Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Common stock available for issuance | 913,612 | ||
2021 Stock Incentive Plan [Member] | Board of Director [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Common stock available for issuance | 1,000,000 | ||
Common stock available for issuance | 1,306,001 |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net Revenues | $ 5,596,284 | $ 5,838,208 |
Cost of Revenues | 1,843,279 | 1,678,274 |
Gross Profit | 3,753,005 | 4,159,934 |
Research & Development | 444,458 | 672,890 |
Selling, General & Administrative | 1,962,451 | 2,111,112 |
Total Operating Expenses | 2,406,909 | 2,784,002 |
INCOME FROM OPERATIONS | 1,346,096 | 1,375,932 |
Other Income (Expense) | ||
Other Income | 15,765 | 79,994 |
Total Other Income | 15,765 | 68,716 |
INCOME BEFORE INCOME TAX EXPENSE | 1,361,861 | 1,444,648 |
Income Tax (Expense) Benefit | ||
Current Tax (Expense) Benefit | (11) | (285,609) |
Deferred Tax (Expense) Benefit | 36,007 | 58,209 |
Total Income Tax Expense | 35,996 | (227,400) |
NET INCOME | 1,397,857 | 1,217,248 |
Supplemental Disclosures | ||
Total Assets | 50,504,105 | |
Total Liabilities | 3,933,636 | |
Interest Expense | (11,278) | |
Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 5,596,284 | 5,838,208 |
Cost of Revenues | 1,843,279 | 1,678,274 |
Gross Profit | 3,753,005 | 4,159,934 |
Research & Development | 444,458 | 672,890 |
Selling, General & Administrative | 1,962,451 | 2,111,112 |
Total Operating Expenses | 2,406,909 | 2,784,002 |
INCOME FROM OPERATIONS | 1,346,096 | 1,375,932 |
Other Income (Expense) | ||
Other Income | 15,765 | 79,994 |
Total Other Income | 15,765 | 68,716 |
INCOME BEFORE INCOME TAX EXPENSE | 1,361,861 | 1,444,648 |
Income Tax (Expense) Benefit | ||
Current Tax (Expense) Benefit | (11) | (285,609) |
Deferred Tax (Expense) Benefit | 36,007 | 58,209 |
Total Income Tax Expense | 35,996 | (227,400) |
NET INCOME | 1,397,857 | 1,217,248 |
Supplemental Disclosures | ||
Total Assets | 50,504,105 | 45,399,231 |
Total Liabilities | 3,933,636 | 2,566,585 |
Revenues from Intercompany Sales - eliminated from sales above | 1,555,381 | 1,105,218 |
Depreciation and Amortization | 164,007 | 161,466 |
Purchases of Long-lived Assets | 105,907 | 1,001,964 |
Interest Expense | (11,278) | |
Marine Technology Business (Products) [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 3,824,159 | 3,823,748 |
Cost of Revenues | 1,064,244 | 572,292 |
Gross Profit | 2,759,915 | 3,251,456 |
Research & Development | 438,308 | 529,375 |
Selling, General & Administrative | 661,759 | 753,614 |
Total Operating Expenses | 1,100,067 | 1,282,989 |
INCOME FROM OPERATIONS | 1,659,848 | 1,968,467 |
Other Income (Expense) | ||
Other Income | 15,020 | 9,049 |
Total Other Income | 15,020 | 4,167 |
INCOME BEFORE INCOME TAX EXPENSE | 1,674,868 | 1,972,634 |
Income Tax (Expense) Benefit | ||
Current Tax (Expense) Benefit | (18,873) | (266,520) |
Deferred Tax (Expense) Benefit | 6,708 | |
Total Income Tax Expense | (18,873) | (259,812) |
NET INCOME | 1,655,995 | 1,712,822 |
Supplemental Disclosures | ||
Total Assets | 36,176,835 | 30,847,114 |
Total Liabilities | 2,694,766 | 1,635,666 |
Revenues from Intercompany Sales - eliminated from sales above | 829,674 | 389,395 |
Depreciation and Amortization | 128,838 | 135,658 |
Purchases of Long-lived Assets | 79,642 | 986,093 |
Interest Expense | (4,882) | |
Marine Engineering Business (Services) [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 1,772,125 | 2,014,460 |
Cost of Revenues | 779,035 | 1,105,982 |
Gross Profit | 993,090 | 908,478 |
Research & Development | 6,150 | 143,515 |
Selling, General & Administrative | 646,310 | 651,149 |
Total Operating Expenses | 652,460 | 794,664 |
INCOME FROM OPERATIONS | 340,630 | 113,814 |
Other Income (Expense) | ||
Other Income | 745 | 70,945 |
Total Other Income | 745 | 65,919 |
INCOME BEFORE INCOME TAX EXPENSE | 341,375 | 179,733 |
Income Tax (Expense) Benefit | ||
Current Tax (Expense) Benefit | (19,856) | 24,036 |
Deferred Tax (Expense) Benefit | 204 | |
Total Income Tax Expense | (19,856) | 24,240 |
NET INCOME | 321,519 | 203,973 |
Supplemental Disclosures | ||
Total Assets | 13,377,560 | 13,893,382 |
Total Liabilities | 758,160 | 501,339 |
Revenues from Intercompany Sales - eliminated from sales above | 45,707 | 115,823 |
Depreciation and Amortization | 24,910 | 16,657 |
Purchases of Long-lived Assets | 4,780 | 1,000 |
Interest Expense | (5,026) | |
Overhead [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | ||
Cost of Revenues | ||
Gross Profit | ||
Research & Development | ||
Selling, General & Administrative | 654,382 | 706,349 |
Total Operating Expenses | 654,382 | 706,349 |
INCOME FROM OPERATIONS | (654,382) | (706,349) |
Other Income (Expense) | ||
Other Income | ||
Total Other Income | (1,370) | |
INCOME BEFORE INCOME TAX EXPENSE | (654,382) | (707,719) |
Income Tax (Expense) Benefit | ||
Current Tax (Expense) Benefit | 38,718 | (43,125) |
Deferred Tax (Expense) Benefit | 36,007 | 51,297 |
Total Income Tax Expense | 74,725 | 8,172 |
NET INCOME | (579,657) | (699,547) |
Supplemental Disclosures | ||
Total Assets | 949,710 | 658,735 |
Total Liabilities | 480,710 | 429,580 |
Revenues from Intercompany Sales - eliminated from sales above | 680,000 | 600,000 |
Depreciation and Amortization | 10,259 | 9,151 |
Purchases of Long-lived Assets | $ 21,485 | 14,871 |
Interest Expense | $ (1,370) |
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, 2023 | Jan. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 5,596,284 | $ 5,838,208 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,989,730 | 2,700,507 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,606,554 | 3,137,701 |
Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,572,560 | 2,395,709 |
Equipment Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 265,903 | 630,468 |
Software Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 417,170 | 304,796 |
Engineering Parts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,149,079 | 1,300,618 |
Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,191,572 | 1,206,617 |
Marine Technology Business (Products) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,824,159 | 3,823,748 |
Marine Technology Business (Products) [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,989,730 | 2,263,641 |
Marine Technology Business (Products) [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 834,429 | 1,560,107 |
Marine Technology Business (Products) [Member] | Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,572,560 | 1,958,845 |
Marine Technology Business (Products) [Member] | Equipment Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 265,903 | 630,468 |
Marine Technology Business (Products) [Member] | Software Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 417,170 | 304,796 |
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 | 568,526 | 929,639 |
Marine Engineering Business (Services) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,772,125 | 2,014,460 |
Marine Engineering Business (Services) [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 436,866 | |
Marine Engineering Business (Services) [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,772,125 | 1,577,594 |
Marine Engineering Business (Services) [Member] | Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 436,864 | |
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 | 1,149,079 | 1,300,618 |
Marine Engineering Business (Services) [Member] | Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 623,046 | 276,978 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,809,270 | 2,914,183 |
Americas [Member] | Marine Technology Business (Products) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 486,293 | 1,709,901 |
Americas [Member] | Marine Engineering Business (Services) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,322,977 | 1,204,282 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,145,558 | 1,648,961 |
Europe [Member] | Marine Technology Business (Products) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 696,410 | 838,783 |
Europe [Member] | Marine Engineering Business (Services) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 449,148 | 810,178 |
Australia/Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,432,428 | 815,084 |
Australia/Asia [Member] | Marine Technology Business (Products) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,432,428 | 815,084 |
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 | 209,028 | 459,980 |
Middle East/Africa [Member] | Marine Technology Business (Products) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 209,028 | 459,980 |
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, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | (2.60%) | 15.70% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 25% | |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | 0% |
SCHEDULE OF INTEREST RATES AND
SCHEDULE OF INTEREST RATES AND AMOUNTS HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS (Details) - Subsequent Event [Member] - USD ($) | Feb. 15, 2023 | Feb. 01, 2023 |
Hsbcna [Member] | ||
Subsequent Event [Line Items] | ||
Amount | $ 12,441,445.25 | |
Deposit interest rate | 4.50% | |
Jyske Bank [Member] | ||
Subsequent Event [Line Items] | ||
Amount | $ 819,000 | |
Deposit interest rate | 3.41% | |
Jyske Bank [Member] | Euro Member Countries, Euro | ||
Subsequent Event [Line Items] | ||
Amount | $ 665,000 | |
Deposit interest rate | 1.30% | |
Jyske Bank [Member] | United Kingdom, Pounds | ||
Subsequent Event [Line Items] | ||
Amount | $ 414,000 | |
Deposit interest rate | 2.65% | |
Jyske Bank [Member] | Denmark, Kroner | ||
Subsequent Event [Line Items] | ||
Amount | $ 2,850,000 | |
Deposit interest rate | 0.91% |