International Baler (IBAL) 10-Q 12 Sep 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Jul. 31, 2019shares
Document And Entity Information
Entity Registrant Name	International Baler Corporation
Entity Central Index Key	0000781902
Document Type	10-Q
Document Period End Date	Jul. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Is Entity's Reporting Status Current?	Yes
Is Entity Smaller Reporting Company?	true
Is Entity Emerging Growth Company?	false
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	5,183,895
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Is Entity Shell Company?	false

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jul. 31, 2019	Oct. 31, 2018
Current assets:
Cash and cash equivalents	$ 3,790,697	$ 4,733,510
Accounts receivable, net of allowance for doubtful accounts of $15,000 at July 31, 2019 and at October 31, 2018	579,956	556,666
Inventories	4,397,474	4,257,085
Prepaid expense and other current assets	117,614	166,604
Total current assets	8,885,741	9,713,865
Property, plant and equipment, at cost	4,336,733	4,092,153
Less: accumulated depreciation	2,978,878	2,821,448
Net property, plant and equipment	1,357,855	1,270,705
Other assets:
Deferred income taxes	61,494	61,494
Total other assets	61,494	61,494
TOTAL ASSETS	10,305,090	11,046,064
Current liabilities:
Accounts payable	492,370	581,651
Accrued liabilities	286,572	386,416
Customer deposits	254,819	894,579
Total current liabilities	1,033,761	1,862,646
Total liabilities	1,033,761	1,862,646
Stockholders' equity:
Preferred stock, par value $.0001, 10,000,000 shares authorized, none issued
Common stock, par value $.01, 25,000,000 shares authorized; 6,429,875 shares issued	64,299	64,299
Additional paid-in capital	6,419,687	6,419,687
Retained earnings	3,468,753	3,380,842
Total stockholders' equity before treasury stock	9,952,739	9,864,828
Less: Treasury stock, 1,245,980 shares, at cost	(681,410)	(681,410)
Total stockholders' equity	9,271,329	9,183,418
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 10,305,090	$ 11,046,064

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jul. 31, 2019	Oct. 31, 2018
Current Assets:
Accounts receivable, net of allowance for doubtful accounts	$ 15,000	$ 15,000
Stockholders' equity:
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, share authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ .01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	6,429,875	6,429,875
Treasury stock, shares	1,245,980	1,245,980

Condensed Statements of Income

Condensed Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Net sales:
Equipment	$ 1,676,414	$ 1,388,022	$ 5,535,104	$ 5,822,173
Parts and service	730,710	633,935	2,255,827	2,173,052
Total net sales	2,407,124	2,021,957	7,790,931	7,995,225
Cost of sales	7,072,365	1,721,277	6,790,950	6,921,504
Gross profit	334,759	300,680	999,981	1,073,721
Operating expense:
Selling expense	157,323	130,843	410,342	346,377
Administrative expense	217,105	164,381	654,051	486,716
Total operating expense	374,428	295,224	1,064,393	833,093
Operating income (loss)	(39,669)	5,456	(64,412)	240,628
Other income:
Interest income	2,662	983	4,482	5,028
Other income	175,841		175,841
Total other income	178,503	983	180,323	5,028
Income before income taxes	138,834	6,439	115,911	245,656
Income tax provision	34,000	1,500	28,000	94,500
Net income	$ 104,834	$ 4,939	$ 87,911	$ 151,156
Income per share, basic and diluted	$ 0.02	$ 0	$ 0.02	$ 0.03
Weighted average number of shares outstanding	5,183,895	5,183,895	5,183,895	5,183,895

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Total
Beginning Balace, Shares at Oct. 31, 2017	6,429,875			1,245,980
Beginning Balance, Value at Oct. 31, 2017	$ 64,299	$ 6,419,687	$ 3,070,613	$ (681,410)	$ 8,873,189
Net Income			198,689		198,689
End Balance, Shares at Jan. 31, 2018	6,429,875			1,245,980
End Balance, Value at Jan. 31, 2018	$ 64,299	6,419,687	3,269,302	$ (681,410)	9,071,878
Beginning Balace, Shares at Oct. 31, 2017	6,429,875			1,245,980
Beginning Balance, Value at Oct. 31, 2017	$ 64,299	6,419,687	3,070,613	$ (681,410)	8,873,189
Net Income					151,156
End Balance, Shares at Jul. 31, 2018	6,429,875			1,245,980
End Balance, Value at Jul. 31, 2018	$ 64,299	6,419,687	3,221,769	$ (681,410)	9,024,345
Beginning Balace, Shares at Jan. 31, 2018	6,429,875			1,245,980
Beginning Balance, Value at Jan. 31, 2018	$ 64,299	6,419,687	3,269,302	$ (681,410)	9,071,878
Net Income			(52,472)		(52,472)
End Balance, Shares at Apr. 30, 2018	6,429,875			1,245,980
End Balance, Value at Apr. 30, 2018	$ 64,299	6,419,687	3,216,830	$ (681,410)	9,019,406
Net Income			4,939		4,939
End Balance, Shares at Jul. 31, 2018	6,429,875			1,245,980
End Balance, Value at Jul. 31, 2018	$ 64,299	6,419,687	3,221,769	$ (681,410)	9,024,345
Beginning Balace, Shares at Oct. 31, 2018	6,429,875			1,245,980
Beginning Balance, Value at Oct. 31, 2018	$ 64,299	6,419,687	(3,380,842)	$ (681,410)	9,183,418
Net Income			(18,788)		(18,788)
End Balance, Shares at Jan. 31, 2019	6,429,875			1,245,980
End Balance, Value at Jan. 31, 2019	$ 64,299	6,419,687	3,362,054	$ (681,410)	9,164,630
Beginning Balace, Shares at Oct. 31, 2018	6,429,875			1,245,980
Beginning Balance, Value at Oct. 31, 2018	$ 64,299	6,419,687	(3,380,842)	$ (681,410)	9,183,418
Net Income					87,911
End Balance, Shares at Jul. 31, 2019	6,429,875			1,245,980
End Balance, Value at Jul. 31, 2019	$ 64,299	6,419,687	3,468,753	$ (681,410)	9,271,329
Beginning Balace, Shares at Jan. 31, 2019	6,429,875			1,245,980
Beginning Balance, Value at Jan. 31, 2019	$ 64,299	6,419,687	3,362,054	$ (681,410)	9,164,630
Net Income			1,865		1,865
End Balance, Shares at Apr. 30, 2019	6,429,875			1,245,980
End Balance, Value at Apr. 30, 2019	$ 64,299	6,419,687	3,363,919	$ (681,410)	9,166,495
Net Income			104,834		104,834
End Balance, Shares at Jul. 31, 2019	6,429,875			1,245,980
End Balance, Value at Jul. 31, 2019	$ 64,299	$ 6,419,687	$ 3,468,753	$ (681,410)	$ 9,271,329

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Cash flow from operating activities:
Net income	$ 87,911	$ 151,156
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	157,430	140,500
Deferred income taxes		10,373
Changes in operating assets and liabilities:
Accounts receivable	(23,290)	486,035
Inventories	(140,389)	146,846
Prepaid expenses and other assets	48,990	(120,024)
Income taxes receivable		126,886
Accounts payable	(89,281)	(219,074)
Accrued liabilities	(99,844)	(45,904)
Customer deposits	(639,760)	(311,424)
Net cash (used in) provided by operating activities	(698,233)	365,370
Cash flows from investing activities:
Purchase of property and equipment	(244,580)	(91,813)
Net cash used in investing activities	(244,580)	(91,813)
Net (decrease) increase in cash and cash equivalents	(942,813)	273,557
Cash and cash equivalents at beginning of period	4,733,510	4,541,767
Cash and cash equivalents at end of period	3,790,697	4,815,324
Cash paid during period for:
Interest
Income taxes		$ 125,000

Nature of Business

Nature of Business	9 Months Ended
	Jul. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business:	1. Nature of Business: International Baler Corporation (the “Company”) is a manufacturer of baling equipment which is designed to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models, and conveyors to meet specific customer requirements. The Company’s customers include recycling facilities, distribution centers, textile mills, and companies which generate the materials for baling and recycling. The Company sells its products worldwide with annual sales outside the United States typically ranging from 10% to 35%.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jul. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	2. Basis of Presentation: The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information in footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the nine month period ended July 31, 2019 are not necessarily indicative of the results that may be expected for the year ending October 31, 2019. The accompanying balance sheet as of October 31, 2018 was derived from the audited financial statements as of October 31, 2018. These unaudited condensed financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended October 31, 2018.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Jul. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies: (a) Accounts Receivable & Allowance for Doubtful Accounts: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly including the analysis of historical trends, customer credit worthiness and the aging of receivables. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. (b) Inventories: Inventories are stated at the lower of cost and net realizable value. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. The Company reviews inventory for obsolescence on a regular basis. (c) Warranties and Service: The Company typically warrants its products for one (1) year from the date of sale as to materials, three (3) years for structural damage and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida or by local service agents who are engaged as needed. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and types of balers currently under warranty, and known warranty issues. Following is a tabular reconciliation of the changes in the warranty accrual for the nine-month period ended July 31: 2019 2018 Beginning balance $ 80,000 $ 70,000 Warranty service provided (111,987 ) (80,986 ) New product warranties 55,351 61,192 Changes to pre-existing warranty accruals 46,636 19,794 Ending balance $ 70,000 $ 70,000 (d) Fair Value of Financial Instruments: The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short term certificates of deposit, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities. (e) Recent Accounting Pronouncements: Recently Adopted Accounting Pronouncements: In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740), Amendment to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) In May 2014, the FASB issued ASU 2014-09 establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases,

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
	Jul. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	4. Revenue from Contracts with Customers: (a) Overview The Company adopted ASC 606 on November 1, 2018. The Company recognizes revenues from the sale of finished products upon shipment and the transfer of control to the customer. The other elements may include installation and, generally, a one-year warranty. Equipment installation revenue is valued based on estimated service person hours to complete installation and is recognized when the labor has been completed and the equipment has been accepted by the customer, which is generally within a couple of days of the delivery of the equipment. Warranty revenue, if sold separately, is valued based on estimated service person hours to complete a service and generally is recognized over the contract period. All other product sales with customer specific acceptance provisions are recognized at a point in time upon customer acceptance and the delivery of the parts or service. Revenues related to spare part sales are recognized upon shipment or delivery based on the trade terms. Generally, pricing is fixed and the majority of the Company’s contracts have short duration and a single performance obligation to deliver a configured to order baler and related equipment to the customer. The Company has elected to expense shipping and handling costs as incurred. (b) Disaggregation of Revenue Disaggregated revenue is by primary geographic market is as follows: Nine Months Ended July 31, 2019 Equipment Revenue by Geographic Area United States $ 4,818,111 International 716,993 Total $ 5,535,104

Related Party Transactions

Related Party Transactions	9 Months Ended
	Jul. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	5. Related Party Transactions: The Estate of Leland E. Boren is a stockholder of the Company and is the owner of Avis Industrial Corporation (Avis). The Estate controls over 80% of the outstanding shares of the Company. Avis owns 100% of The American Baler Company, a competitor of the Company. On January 1, 2014, Avis acquired The Harris Waste Management Group, Inc. (Harris), also a competitor of the Company. On July 31, 2014 Harris acquired the assets of IPS Balers, Inc. in Baxley, Georgia, another competitor of the Company. These baler companies operate completely independent of each other. The Company had no purchases from these companies in the first nine months of fiscal 2019 and in the fiscal year ended October 31, 2018. The Company had no sales to The American Baler Company in the first nine months of fiscal 2019 and in the fiscal year ended October 31, 2018. The Company sold five closed door horizontal balers and one conveyor to Harris Waste Management for $295,032 in fiscal 2018 and sold one closed door horizontal baler for $59,323, to Harris Waste Management during the first nine months of fiscal 2019.

Inventories

Inventories	9 Months Ended
	Jul. 31, 2019
Inventory Disclosure [Abstract]
Inventories	6. Inventories: Inventories consisted of the following: July 31, 2019 October 31, 2018 Raw materials $ 2,103,096 $ 1,901,707 Work in process 1,805,663 2,166,663 Finished goods 488,715 188,715 $ 4,397,474 $ 4,257,085

Debt

Debt	9 Months Ended
	Jul. 31, 2019
Debt Disclosure [Abstract]
Debt	7. Debt: The Company has a $1,650,000 line of credit agreement with First Merchants Bank of Muncie, Indiana which was renewed on May 15, 2019. The line of credit allows the Company to borrow at an interest rate equal to the Wall Street Journal prime rate minus 0.95%, adjusting daily. The line of credit is secured by all assets of the Company and expires on May 15, 2020.The line of credit had no outstanding balance at July 31, 2019 and at October 31, 2018.

Income Taxes

Income Taxes	9 Months Ended
	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes: Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. Factors considered included, historical results of operations, volatility of the economic conditions and projected earnings based on current operations. Based on this evidence, it is more likely than not that the deferred tax assets would be realized. Accordingly, there is no valuation allowance as of July 31, 2019 and at October 31, 2018. However, if it is determined that all or part of the deferred tax assets will not be used in the future, an adjustment to the deferred tax assets would be charged against net income in the period such determination is made. As of July 31, 2019 and October 31, 2018, net deferred tax assets were $61,494. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses. The Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into United States tax law on December 22, 2017. The Act makes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, and changes in business-related exclusions, and deductions and credits. As a result of the income tax rate reduction, the Company recorded a reduction of net deferred income tax assets of approximately $10,000 during the first quarter of the fiscal year ended October 31, 2018.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jul. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies: The Company, in the ordinary course of business, is subject to claims made, and from time to time is named as a defendant in legal proceedings relating to the sales of its products. The Company believes that the reserves reflected in its financial statements are adequate to pay losses and loss adjustment expenses which may result from such claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. On December 1, 2017 the Company was served with a complaint related to an injury to an employee working at Integrated Coating and Seed Technology Inc.,(INCOTEC). The employee was operating a baler manufactured by the Company in 1994. The injury occurred on December 4, 2015. The plaintiff is Star Insurance Company. The Company believes its exposure is $25,000, the amount of the Company’s deductible on its insurance policy. Accordingly, the Company accrued $25,000 during the second quarter of fiscal 2018. In December 2018 the Company discovered an employee theft of Company property. The Company has researched what items were stolen and our estimate is that the value of the stolen items was approximately $200,000. Since the Company conducts a physical inventory at the end of each fiscal year, any losses incurred for the fiscal year ended October 31, 2018 were reflected in the operating results of the Company for that fiscal year. The Company carries Crime Insurance which has an upper limit of $1,000,000 and a deductible of $25,000. In May 2019 the Company’s insurer approved the crime insurance claim and agreed to reimburse the Company $175,841. Insurance proceeds were received in May of 2019 and were recorded as other income in the accompanying condensed statements of income.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jul. 31, 2019
Accounting Policies [Abstract]
Accounts Receivable and Allowance for Doubtful Accounts	(a) Accounts Receivable & Allowance for Doubtful Accounts: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly including the analysis of historical trends, customer credit worthiness and the aging of receivables. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
Inventories	(b) Inventories: Inventories are stated at the lower of cost and net realizable value. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. The Company reviews inventory for obsolescence on a regular basis.
Warranties and Service	(c) Warranties and Service: The Company typically warrants its products for one (1) year from the date of sale as to materials, three (3) years for structural damage and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida or by local service agents who are engaged as needed. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and types of balers currently under warranty, and known warranty issues. Following is a tabular reconciliation of the changes in the warranty accrual for the nine-month period ended July 31: 2019 2018 Beginning balance $ 80,000 $ 70,000 Warranty service provided (111,987 ) (80,986 ) New product warranties 55,351 61,192 Changes to pre-existing warranty accruals 46,636 19,794 Ending balance $ 70,000 $ 70,000
Fair Value of Financial Instruments	(d) Fair Value of Financial Instruments: The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short term certificates of deposit, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities.
Recent Accounting Pronouncements	(e) Recent Accounting Pronouncements: Recently Adopted Accounting Pronouncements: In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740), Amendment to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) In May 2014, the FASB issued ASU 2014-09 establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases,

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Jul. 31, 2019
Accounting Policies [Abstract]
Warranty Accrual	2019 2018 Beginning balance $ 80,000 $ 70,000 Warranty service provided (111,987 ) (80,986 ) New product warranties 55,351 61,192 Changes to pre-existing warranty accruals 46,636 19,794 Ending balance $ 70,000 $ 70,000

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
	Jul. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregated revenue	Equipment Revenue by Geographic Area Six Months Ended 2019 United States $ 3,542,040 International 316,650 Total $ 3,858,690

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jul. 31, 2019
Inventory Disclosure [Abstract]
Inventories	January 31, 2019 October 31, 2018 Raw materials $ 2,036,188 $ 1,901,707 Work in process 2,092,663 2,166,663 Finished goods 180,715 188,715 $ 4,309,566 $ 4,257,085

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Warranty Accrual (Details) - USD ($)	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract]
Beginning balance	$ 80,000	$ 70,000
Warranty service provided	(111,987)	(80,986)
New product warranties	55,351	61,192
Changes to pre-existing warranty accruals	46,636	19,794
Ending balance	$ 70,000	$ 70,000

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregated revenue (Details)	9 Months Ended
	Jul. 31, 2019USD ($)
Equipment Revenue by Geographic Area
Total	$ 5,535,104
United States
Equipment Revenue by Geographic Area
Total	4,818,111
International
Equipment Revenue by Geographic Area
Total	$ 716,993

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Jul. 31, 2019	Oct. 31, 2018	Oct. 31, 2016
Sales	$ 5,535,104
Leland E. Boren
Ownership of Avis			80.00%
Avis Industrial Corp.
Ownership of The American Baler			100.00%
Harris Waste Management
Sales	$ 59,323	$ 295,032

Inventories - Inventories (Deta

Inventories - Inventories (Details) - USD ($)	Jul. 31, 2019	Oct. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,103,096	$ 1,901,707
Work in process	1,805,663	2,166,663
Finished goods	488,715	188,715
Inventories	$ 4,397,474	$ 4,257,085

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	9 Months Ended
	Jul. 31, 2019	Oct. 31, 2018
Short-term Debt [Line Items]
Line of Credit Agreement	$ 1,650,000
Interest Rate Terms	<font style="font-size: 10pt">The line of credit allows the Company to borrow at an interest rate equal to the Wall Street Journal prime rate minus 0.95%, adjusting daily. The line of credit is secured by all assets of the Company and expires on May 15, 2019.</font></p>" id="sjs-B5">&lt;p style="margin: 0; text-align: justify">&lt;font style="font-size: 10pt">The line of credit allows the Company to borrow at an interest rate equal to the Wall Street Journal prime rate minus 0.95%, adjusting daily. The line of credit is secured by all assets of the Company and expires on May 15, 2019.&lt;/font>&lt;/p>
Outstanding balance	$ 0
Line of Credit [Member]
Short-term Debt [Line Items]
Outstanding balance		$ 0

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Jan. 31, 2018	Jul. 31, 2019	Oct. 31, 2018
Components of Deferred Tax Assets [Abstract]
Federal Statutory Rate		21.00%
Net deferred tax assets		$ 61,494	$ 61,494
Reduction of net deferred income tax assets	$ 10,000

Commitment and Contingencies (D

Commitment and Contingencies (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Jan. 31, 2018	Jul. 31, 2018	May 31, 2019
Loss Contingency, Information about Litigation Matters [Abstract]
Lawsuit exposure		$ 25,000
Theft	$ 200,000
Reimbursement from insurance claim			$ 175,841