Cover
Cover - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Jan. 19, 2023 | Apr. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Oct. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
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 | 407 | ||
Local Phone Number | 735 2406 | ||
Title of 12(b) Security | COMMON STOCK, $0.001 PAR VALUE PER SHARE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 27,144,477 | ||
Entity Common Stock, Shares Outstanding | 10,942,353 | ||
Auditor Name | Frazier & Deeter, LLC | ||
Auditor Location | Tampa, Florida | ||
Auditor Firm ID | 215 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 22,927,371 | $ 17,747,656 |
Accounts Receivable | 2,870,600 | 4,207,996 |
Inventory | 10,027,111 | 10,691,177 |
Unbilled Receivables | 602,115 | 1,080,384 |
Prepaid Expenses | 240,464 | 1,202,327 |
Other Current Assets | 343,061 | 627,619 |
Total Current Assets | 37,010,722 | 35,557,159 |
FIXED ASSETS | ||
Property and Equipment, net | 5,832,532 | 6,037,101 |
OTHER ASSETS | ||
Goodwill and Other Intangibles, net | 3,824,394 | 3,794,383 |
Deferred Tax Asset | 259,810 | 76,776 |
Total Other Assets | 4,084,204 | 3,871,159 |
Total Assets | 46,927,458 | 45,465,419 |
CURRENT LIABILITIES | ||
Accounts Payable | 793,247 | 1,454,611 |
Accrued Expenses and Other Current Liabilities | 1,731,706 | 740,449 |
Note Payable | 63,559 | |
Deferred Revenue | 943,569 | 1,999,841 |
Total Current Liabilities | 3,468,522 | 4,258,460 |
LONG TERM LIABILITIES | ||
Deferred Revenue, less current portion | 76,127 | 157,886 |
Total Long-Term Liabilities | 76,127 | 157,886 |
Total Liabilities | 3,544,649 | 4,416,346 |
STOCKHOLDERS’ EQUITY | ||
Common Stock, $.001 par value; 150,000,000 shares authorized, 10,916,853 issued and outstanding as of October 31, 2022, and 10,857,195 shares issued and outstanding as of October 31, 2021 | 10,918 | 10,858 |
Treasury Stock | (28,337) | |
Additional Paid-in Capital | 62,313,988 | 61,183,131 |
Accumulated Other Comprehensive Loss | (4,737,124) | (1,667,059) |
Accumulated Deficit | (14,176,636) | (18,477,857) |
Total Stockholders’ Equity | 43,382,809 | 41,049,073 |
Total Liabilities and Stockholders’ Equity | $ 46,927,458 | $ 45,465,419 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 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 | 10,916,853 | 10,857,195 |
Common stock, shares outstanding | 10,916,853 | 10,857,195 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Income Statement [Abstract] | ||
Net Revenues | $ 22,225,803 | $ 21,331,527 |
Cost of Revenues | 7,035,115 | 6,561,809 |
Gross Profit | 15,190,688 | 14,769,718 |
OPERATING EXPENSES | ||
Research & Development | 2,237,920 | 2,982,676 |
Selling, General & Administrative | 7,948,704 | 7,949,525 |
Total Operating Expenses | 10,186,624 | 10,932,201 |
INCOME FROM OPERATIONS | 5,004,064 | 3,837,517 |
OTHER INCOME (EXPENSE) | ||
Other Income | 137,975 | 1,435,382 |
Interest Expense | (9,704) | (19,655) |
Total Other Income | 128,271 | 1,415,727 |
INCOME BEFORE INCOME TAX EXPENSE | 5,132,335 | 5,253,244 |
INCOME TAX (EXPENSE) BENEFIT | ||
Current Tax Expense | (1,005,140) | (16,592) |
Deferred Tax Benefit (Expense) | 174,026 | (288,887) |
Total Income Tax Expense | (831,114) | (305,479) |
NET INCOME | $ 4,301,221 | $ 4,947,765 |
NET INCOME PER SHARE: | ||
Basic | $ 0.40 | $ 0.46 |
Diluted | $ 0.38 | $ 0.44 |
WEIGHTED AVERAGE SHARES: | ||
Basic | 10,863,674 | 10,804,074 |
Diluted | 11,281,347 | 11,309,740 |
Foreign Currency Translation Adjustment | $ (3,070,065) | $ 654,219 |
Total Other Comprehensive (Loss) Income | (3,070,065) | 654,219 |
COMPREHENSIVE INCOME | $ 1,231,156 | $ 5,601,984 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [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 | 830,071 | 830,071 | ||||
Stock issued for options exercised | $ 80 | (80) | ||||
Stock issued for options exercised, shares | 80,314 | 169,332 | ||||
Consultant stock based compensation | $ 25 | 220,725 | $ 220,750 | |||
Consultant stock based compensation, shares | 25,000 | |||||
Foreign currency translation adjustment | 654,219 | 654,219 | ||||
Net Income | 4,947,765 | 4,947,765 | ||||
Treasury Stock at Oct. 31, 2021 | ||||||
Ending balance, value at Oct. 31, 2021 | $ 10,858 | 61,183,131 | (1,667,059) | (18,477,857) | 41,049,073 | |
Ending balance, shares at Oct. 31, 2021 | 10,857,195 | |||||
Employee stock based compensation | 1,130,917 | 1,130,917 | ||||
Stock issued for options exercised | $ 60 | (60) | ||||
Stock issued for options exercised, shares | 59,658 | 36,667 | ||||
Foreign currency translation adjustment | (3,070,065) | $ (3,070,065) | ||||
Net Income | 4,301,221 | 4,301,221 | ||||
Treasury Stock at Oct. 31, 2022 | (28,337) | (28,337) | ||||
Ending balance, value at Oct. 31, 2022 | $ 10,918 | $ 62,313,988 | $ (4,737,124) | $ (14,176,636) | $ (28,337) | $ 43,382,809 |
Ending balance, shares at Oct. 31, 2022 | 10,916,853 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 4,301,221 | $ 4,947,765 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 738,729 | 924,073 |
Stock based compensation | 1,130,917 | 1,050,821 |
Deferred income taxes | (193,083) | 485,126 |
Funding from Paycheck Protection Program recognized as income | (648,872) | |
(Increase) decrease in operating assets: | ||
Accounts receivable | 992,948 | (2,193,336) |
Inventory | (675,878) | (1,063,163) |
Unbilled receivables | 447,927 | (219,084) |
Prepaid expenses | 165,010 | (913,123) |
Other current assets | 275,909 | (383,449) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other current liabilities | 533,996 | 326,761 |
Deferred revenue | (990,729) | 956,251 |
Net Cash Provided by Operating Activities | 6,726,967 | 3,269,770 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (466,471) | (850,894) |
Purchases of other intangible assets | (90,089) | (113,310) |
Net Cash Used in Investing Activities | (556,560) | (964,204) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of notes | (63,559) | (509,549) |
Proceeds from Paycheck Protection Program | 648,872 | |
Purchase of treasury stock | (28,337) | |
Net Cash (Used in) Provided by Financing Activities | (91,896) | 139,323 |
EFFECT OF CURRENCY TRANSLATION ON CHANGES IN CASH | (898,796) | 168,478 |
NET INCREASE IN CASH | 5,179,715 | 2,613,367 |
CASH AT THE BEGINNING OF THE YEAR | 17,747,656 | 15,134,289 |
CASH AT THE END OF THE YEAR | 22,927,371 | 17,747,656 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 9,704 | 19,655 |
Cash paid for taxes | 74,432 | |
SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Purchase of property and equipment previously held in escrow, included in prepaid expenses as of October 31, 2021 | $ 694,664 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Oct. 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 Marine Engineering Business supplies sub-assemblies that it designs primarily as sub-contractors to Prime Defense Contractors for incorporation into broader mission critical defense systems. These design contracts typically progress to manufacturing contracts for these sub-assemblies and are typically supplied for the life of the program to which they pertain. The consolidated financial statements include the accounts of Coda Octopus Group, Inc. and its domestic and foreign subsidiaries. All significant intercompany transactions and balances have been eliminated in the consolidated financial statements. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF ACCOUNTING POLICIES a. Basis of Presentation The Company has adopted the Financial Accounting Standards Board (FASB) Codification (Codification). The Codification is the single official source of authoritative accounting principles generally accepted in the United States of America (U.S. GAAP) recognized by the FASB to be applied by nongovernmental entities, and all the Codification’s content carries the same level of authority. b. Cash The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. At times such investments may be in excess of federal deposit insurance limits. c. Trade Accounts Receivable Trade accounts receivable are recorded net of the allowance for doubtful accounts. The Company provides for an allowance for doubtful collections that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Balances still outstanding after the Company has used reasonable collection efforts are written off though a charge to the valuation allowance and a credit to trade accounts receivable. The allowance for doubtful accounts was $ 0 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) d. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for minor replacements, maintenance and repairs which do not increase the useful lives of the property and equipment are charged to operations as incurred. Major additions and improvements are capitalized. Depreciation and amortization are computed using the straight-line method over their estimated useful lives which is typically three to five years 50 70 We own substantially all our facilities and believe that the effect of adopting Accounting Standards Codification 842, “Leases”, has been immaterial. e. Advertising Coda follows the policy of charging the costs of advertising to expense as incurred, which aggregated $ 0 5,042 f. 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 October 31, October 31, 2022 2021 Raw materials and parts $ 7,219,344 $ 7,525,419 Work in progress 383,427 919,619 Finished goods 2,424,340 2,246,139 Total Inventory $ 10,027,111 $ 10,691,177 g. 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, the valuation of the deferred tax asset, and the valuation of goodwill. h. Revenue Recognition The Company recognizes revenue under the Financial Accounting Standards Board’s Topic 606, Revenue from Contracts with Customers CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) h. Revenue Recognition (Continued) Topic 606 has established a five-step process to determine the amount of revenue to record from contracts with customers. The five steps are: ● Determine if we have a contract with a customer; ● Determine the performance obligations in that contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations; and ● Determine when to recognize revenue. Our revenues are earned under formal contracts with our customers and are derived from both sales and rental of underwater technologies and equipment for real time 3D imaging, mapping, defense and survey applications and from the engineering services which we provide primarily to prime defense contractors. Our contracts do not include the possibility for additional contingent consideration so that our determination of the contract price does not involve having to consider potential additional variable consideration. Our sales do not include a right of return by the customer. With regard to our Marine Technology Business (“Products Business”), all of our products are sold on a stand-alone basis and those market prices are evidence of the value of the products. To the extent that we also provide services (e.g., installation, training, post-sales technical support etc.), those services are either included as part of the product or are subject to written contracts based on the stand-alone value of those services. Revenue from the sale of services is recognized when those services have been provided to the customer and evidence of the provision of those services exist. Revenue derived from either our subscription package offerings or rental of our equipment is recognized when performance obligations are met, in particular, on a daily basis during the subscription or rental period. For arrangements with multiple performance obligations, we recognize product revenue by allocating the transaction revenue to each performance obligation based on the relative fair value of each deliverable and recognize revenue when performance obligations are met including when equipment is delivered, and for rental of equipment, when installation and other services are performed. Our contracts sometimes require customer payments in advance of revenue recognition 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. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) h. Revenue Recognition (Continued) 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. 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 October 31, 2022 and 2021, we had deferred commissions of $ 0 . Amortization expense related to deferred commissions was $ 0 and $ 3,884 in the years ended October 31, 2022 and 2021, respectively. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) h. Revenue Recognition (Continued) Other Revenue Disclosures See Note 13 – 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. i. Concentrations of Risk Credit losses, if any, have been provided for in the consolidated financial statements and are based on management’s expectations. The Company’s accounts receivables are subject to potential concentrations of credit risk, since a significant part of the Company’s sales are to a small number of companies and, even though these are generally established businesses, market fluctuations such as the price of oil may affect our customers’ ability to meet their obligations to us. Furthermore, Trade disputes may result in impairment or delays in receivables. The Company’s bank deposits are held with financial institutions both in and outside the USA. At times, such amounts may be in excess of applicable government mandated insurance limits. The Company has not experienced any losses in such accounts or lack of access to its cash, and believes it is not exposed to significant risk of loss with respect to cash. j. Contracts in Progress (Unbilled Receivables and Deferred Revenue) 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 $ 602,115 1,080,384 Our Deferred Revenue of $ 790,458 1,879,790 Revenue received as part of sales of equipment includes a provision for warranty or through life support (TLS) and is treated as deferred revenue, along with extended warranty sales or TLS, which may be purchased by customers. These amounts are amortized over the relevant warranty or TLS period (12 months is our standard warranty or 24, 36 or 60 months for TLS) from the date of sale. These amounts are stated on the consolidated balance sheets as a component of Deferred Revenue and were $ 229,238 277,937 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (CONTINUED) k. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification 740, Income Taxes Deferred tax assets and liabilities are the amounts by which the Company’s future income taxes are expected to be impacted by these differences as they reverse. Deferred tax assets are based on differences that are expected to decrease future income taxes as they reverse. Correspondingly, deferred tax liabilities are based on differences that are expected to increase future income taxes as they reverse. Note 7 below discusses the amounts of deferred tax assets and liabilities, and also presents the impact of significant differences between financial reporting income and taxable income. For income tax purposes, the Company uses the percentage of completion method of recognizing revenues on long-term contracts which is consistent with the Company’s financial reporting under U.S. GAAP. l. Goodwill and Intangible Assets Goodwill and Intangible assets consist principally of the excess of cost over the fair value of net assets acquired (or goodwill), customer relationships, non-compete agreements and licenses. Goodwill was allocated to our reporting units based on the original purchase price allocation. Goodwill is not amortized and is evaluated for impairment annually or more often if circumstances indicate impairment may exist. Customer relationships, non-compete agreements, patents and licenses are being amortized on a straight-line basis over periods of 2 to 15 years Step 1 of the goodwill impairment test, used to identify potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value, which is based on future cash flows, exceeds the carrying amount, goodwill is not considered impaired. The Company has adopted Accounting Standards Codification 2017 – 04, simplifying the Test for Goodwill Impairment, which permits the Company to impair the difference between carrying amounts in excess of the fair value of the reporting unit as the reduction in goodwill. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (Continued) l. Goodwill and Intangible Assets (Continued) At the end of each year, we evaluate goodwill on a separate reporting unit basis to assess recoverability, and impairments, if any, are recognized in earnings. An impairment loss would be recognized in an amount equal to the excess of the carrying amount of the reporting unit over the fair value of the reporting unit. There were no m. 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. n. 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 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. For the years ended October 31, 2022 and 2021, the Company recorded an aggregate transaction gain (loss) of $ 431,314 195,341) o. Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. No p. Research and Development Research and development costs consist of expenditures for the development of present and future patents and technology, which are not capitalizable. Under current legislation, we are eligible for UK tax credits related to our qualified research and development expenditures. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (Continued) q. Stock Based Compensation In accordance with the accounting rules for stock compensation, for time-based awards, the Company is accruing a stock compensation expense and increase to additional paid in capital based on the market value of the common stock as of the grant date throughout the vesting period. The vesting period for the options is 36 months and is based on the employee’s continuous service to the Company. In addition, the Company has issued Restricted Stock Awards (RSA) The vesting period is between 6 and 36 months and is based on the employee’s/consultant’s continued service for the vesting period. Prior to vesting, the awards are subject to forfeiture in the whole or in part under certain circumstances. We use the Black-Scholes option pricing model to determine the fair value for equity instruments granted to employees. r. Comprehensive Income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Comprehensive income includes gains and losses on foreign currency translation adjustments and is included as a component of stockholders’ equity. s. Earnings per Share We compute basic earnings per share by dividing the income attributable to common shareholders by the weighted average number of common shares outstanding in the reporting period. Following is a reconciliation of earnings from continuing operations and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share: SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Year Year Ended Ended October 31 October 31 Fiscal Period 2022 2021 Numerator: Net Income $ 4,301,221 $ 4,947,765 Denominator: Basic weighted average common shares outstanding 10,863,674 10,804,074 Unused portion of options and restricted stock awards 417,673 505,666 Diluted outstanding shares 11,281,347 11,309,740 Net income per share Basic $ 0.40 $ 0.46 Diluted $ 0.38 $ 0.44 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (Continued) t. Recent Accounting Pronouncements There have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements. u. Treasury Stock Repurchases of Restricted Stock Awards or common stock are classified as treasury stock on our Consolidated Balance Sheet. We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in our Consolidated Balance Sheet. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a reduction of retained earnings in our Consolidated Balance Sheet. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Oct. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | NOTE 3 – OTHER INCOME Other Income consisted of the following components: SCHEDULE OF OTHER INCOME October 31, October 31, 2022 2021 PPP Loans $ - $ 648,872 Employee Retention Credits payroll tax credits 88,917 701,568 Other Income 49,058 84,942 Total Other Income, net $ 137,975 $ 1,435,382 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS Other intangibles consisted of the following as of: SCHEDULE OF OTHER INTANGIBLE ASSETS October 31, October 31, 2022 2021 Customer relationships (weighted average life of 10 $ 720,592 $ 720,592 Non-compete agreements (weighted average life of 3 198,911 198,911 Patents and other (weighted average life of 10 675,572 585,483 Total identifiable intangible assets - gross carrying value 1,595,075 1,504,986 Less: accumulated amortization (1,152,789 ) (1,092,711 ) Total intangible assets, net $ 442,286 $ 412,275 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS (Continued) Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $ 60,077 50,379 Future estimated annual amortization expenses as of October 31, 2022 is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSES Years Ending October 31, Amount 2023 52,089 2024 42,877 2025 27,533 2026 24,442 Thereafter 295,345 Totals $ 442,286 Goodwill consisted of the following as of: SCHEDULE OF GOODWILL October 31, October 31, 2022 2021 Coda Octopus Colmek, Inc. $ 2,038,669 $ 2,038,669 Coda Octopus Products, Ltd 62,315 62,315 Coda Octopus Martech, Ltd 1,281,124 1,281,124 Total Goodwill $ 3,382,108 $ 3,382,108 Considerable management judgment is necessary to estimate the fair value of goodwill. Based on various market factors and projections used by management, actual results could vary significantly from management’s estimates. The Company’s policy is to test its goodwill balances for impairment on an annual basis, as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Based on these evaluations, the fair value of reporting unit exceeds its carrying value. As such no impairment was recorded by management. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of: SCHEDULE OF PROPERTY AND EQUIPMENT October 31, October 31, 2022 2021 Buildings $ 5,419,946 $ 5,298,028 Land 200,000 200,000 Office machinery and equipment 1,556,030 1,622,871 Rental assets 2,252,292 2,326,486 Furniture, fixtures and improvements 1,108,787 1,218,217 Totals 10,537,055 10,665,602 Less: accumulated depreciation (4,704,523 ) (4,628,501 ) Total Property and Equipment, net $ 5,832,532 $ 6,037,101 Depreciation expense for the years ended October 31, 2022 and 2021 was $ 678,652 873,694 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Oct. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 6 - OTHER CURRENT ASSETS Other current assets consisted of the following at: SUMMARY OF OTHER CURRENT ASSETS October 31, October 31, 2022 2021 Deposits $ 18,631 $ 63,992 Other Tax Receivables 151,217 - Employee Retention Credit Receivables 173,213 563,627 Total Other Current Assets $ 343,061 $ 627,619 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
CAPITAL STOCK | NOTE 7 – CAPITAL STOCK Common Stock During the fiscal year ended October 31, 2021, the Company issued 80,314 169,332 On July 20, 2021, the Company issued 25,000 220,750 During the fiscal year ended October 31, 2021, the Company granted under its 2017 Plan restricted stock awards to purchase an aggregate of 127,500 238,612 8,000 3,000 During the fiscal year ended October 31, 2022, pursuant to the terms of the 2017 Plan, the Company granted restricted stock awards of 64,687 shares of common stock to various eligible individuals and also issued 53,733 16,981 5,467 5,925 36,667 230,741 shares available under the 2017 Plan. At the year ended October 31, 2022, there were 1,000,000 The following tables presents Options and Restricted Stock Award activities for the years ended October 31, 2022, and 2021 and shows the Company’s outstanding obligations for Options and Restricted Stock Awards for the said years. The intrinsic value of the outstanding options as of October 31, 2022 was $ 544,175 1,446,835 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 7 – CAPITAL STOCK (Continued) SCHEDULE OF STOCK OPTION ACTIVITY Stock Options Total Weighted Average Exercise Price Exercisable Weighted Average Exercise Price Non-Vested Weighted Average Exercise Price Outstanding at October 31, 2020 561,000 $ 4.65 - $ - 561,000 $ 4.65 Granted - - - - Vested - $ 4.65 185,667 $ 4.65 (185,667 ) $ 4.65 Exercised (169,332 ) $ 4.65 (169,332 ) $ 4.65 - $ 4.65 Forfeited or cancelled (8,000 ) $ 4.65 - - (8,000 ) $ 4.65 Outstanding at October 31, 2021 383,668 $ 4.65 16,335 - 367,333 $ 4.65 Granted - - - - Vested - $ 4.65 183,668 $ 4.65 (183,668 ) $ 4.65 Exercised (36,667 ) $ 4.65 (36,667 ) $ 4.65 - $ 4.65 Forfeited or cancelled (39,834 ) $ 4.65 (4,333 ) - (35,501 ) $ 4.65 Outstanding at October 31, 2022 307,167 $ 4.65 159,003 $ 4.65 148,164 $ 4.65 Aggregate Intrinsic Value October 31, 2021 $ 1,446,835 $ 61,746 $ 1,385,089 Aggregate Intrinsic Value October 31, 2022 $ 544,175 $ 281,689 $ 262,486 The total expense recognized by the Company relating to stock options during the years ended October 31, 2022 and 2021, respectively, was $ 211,284 482,595 90,831 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 7 – CAPITAL STOCK (Continued) SCHEDULE OF RESTRICTED STOCK AWARDS Restricted Stock Awards (“RSA”) Total Weighted Average Exercise Price Exercisable Weighted Average Exercise Price Non-Vested Weighted Average Exercise Price Outstanding at October 31, 2020 - $ - - $ - - $ - Granted 127,500 $ 8.80 - $ 8.80 127,500 $ 8.80 Vested - $ 8.80 - $ 8.80 - $ 8.80 Exercised - $ 8.80 - $ 8.80 - $ 8.80 Treasury Stock - $ 8.80 - $ 8.80 - $ 8.80 Forfeited or cancelled (5,500 ) $ 8.80 - $ 8.80 (5,500 ) $ 8.80 Outstanding at October 31, 2021 122,000 $ 8.80 - $ 8.80 122,000 $ 8.80 Granted 64,687 $ 7.15 - $ 7.15 64,687 $ 7.15 Vested (53,733 ) $ 5.05 - $ 5.05 (53,733) $ 5.05 Exercised - $ - - $ - - $ - Treasury Stock (5,467 ) $ 5.18 $ 5.18 (5,467) $ 5.18 Forfeited or cancelled (16,981 ) $ 8.43 - $ 8.43 (16,981 ) $ 8.43 $ - Outstanding at October 31, 2022 110,506 $ 8.10 - $ 8.10 110,506 $ 8.10 The total expense recognized by the Company relating to restricted stock awards during the year ended October 31, 2022 and 2021 was $ 919,633 347,476 122,306 All Stock Options and Restricted Stock Awards have been made pursuant to the 2017 Plan. Total stock compensation expense from issued shares, stock options and restricted stock awards is $ 1,130,917 Preferred Stock Series A and Series C Preferred Stock The Company is authorized to issue 5,000,000 0.001 50,000 50,000 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 8 - INCOME TAXES The Company provides for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The provision (benefit) for income taxes comprises: SCHEDULE OF PROVISION (BENEFIT) FOR INCOME TAXES October 31, October 31, 2022 2021 Current federal expense $ 849,580 $ (25,429 ) Current state income tax expense 159,900 - Foreign tax (benefit) expense (4,340 ) 42,021 Total current tax expense 1,005,140 16,592 Deferred federal (benefit) expense (174,026 ) 288,887 Deferred Tax (Benefit) Expense (174,026 ) 288,887 Total Income Tax Expense $ 831,114 $ 305,479 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2021 and 2020 NOTE 8 - INCOME TAXES (Continued) The expense for income taxes differed from the U.S. statutory rate due to the following: SCHEDULE OF RECONCILIATION OF INCOME TAX BENEFIT October 31, October 31, 2022 2021 Statutory tax rate 21.0 % 21.0 % R&D Relief (10.6 )% (18.4 )% Change in valuation allowance 3.7 % 0.0 % Foreign tax (benefit) expense (0.9 )% 3.2 % State Income Tax 3.0 % 0.0 % Total 16.2 % 5.8 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES October 31, October 31, 2022 2021 Noncurrent deferred tax assets Temporary differences U.S. NOL carryforwards $ - $ 15,930 Deferred Revenue 4,830 - Restricted Stock Awards 272,841 72,970 Book/Tax Depreciation (17,861 ) (12,124 ) Foreign fixed assets (84,381 ) 18,168 Foreign NOL carryforwards 409,100 148,650 Total 584,529 243,594 Valuation allowance (324,719 ) (166,818 ) Total Deferred Asset $ 259,810 $ 76,776 As of October 31, 2022, we had no remaining U.S. federal net operating loss (NOL) carryforwards. The Company has filed tax returns for federal, state, and foreign jurisdictions. The Company’s evaluation of uncertain tax matters was performed for the tax years ended October 31, 2022, and 2021. The Company has elected to retain its existing accounting policy with respect to the treatment of interest and penalties attributable to income taxes and continues to reflect interest and penalties attributable to income taxes, to extent they arise, as a component of its income tax provision or benefit as well as its outstanding income tax assets and liabilities. The Company believes that its income tax positions and deductions would be sustained on audit and does not anticipate any adjustments to result in a material change to its financial position. The Company’s UK Operations, under the applicable UK tax rules, have certain trading losses (referred to in this disclosure as “NOL carryforwards”). Under the applicable UK tax rules, any trading tax losses incurred from 2017 up to and including the current fiscal year can be surrendered for group relief to offset or reduce current year profits and tax liability in any of our UK Operations. Any tax losses before 2017 in a UK entity can only be used in the entity to which it pertains. The tax losses are available indefinitely unless the nature of the business with the trading loss benefit changes substantially. Under UK tax rules, the UK entities are also eligible for R&D Tax Credit. The UK Products Business in any one FY performs significant R&D work due to the nature of its business (researching and developing products and solutions). In the 2022 FY, we were eligible to deduct £ 2,246,251 2,819,389 1.3 0.48 0.82 A valuation allowance is required for deferred tax assets, if based on available evidence, it is more likely than not that that all or some portion of the asset will not be realized due to the inability to generate sufficient taxable income in the future. The deferred tax losses refer to timing of asset allowance in the UK. As we are generally able to offset most taxes with brought forward trading losses, R&D tax credit to offset profits expected to be ongoing and ability to utilize such reliefs within between entities then we do not foresee being able to utilize those deferred tax assets in the near future. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE | NOTE 9 - NOTE PAYABLE Note payable consisted of the following at: SCHEDULE OF NOTES PAYABLE October 31, October 31, 2022 2021 Secured note payable to HSBC NA with interest payable on the 28 th 4.56 43,777 December 2021. $ - $ 63,559 . Total - 63,559 Less: current portion - (63,559 ) Total Long Term Note Payable $ - $ - The HSBC Loan was repaid in full in December 2021. The Company entered into a $ 4,000,000 0 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) consists of foreign currency translation adjustments. Total other comprehensive income (loss) was ($3,070,065) 654,219 A reconciliation of the other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheets is as follows: SCHEDULE OF OTHER COMPREHENSIVE INCOME (LOSS) October 31, October 31, 2022 2021 Balance, beginning of year $ (1,667,059 ) $ (2,321,278 ) Total other comprehensive income (loss) for the year - foreign currency translation adjustment (3,070,065 ) 654,219 Balance, end of year $ (4,737,124 ) $ (1,667,059 ) |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Oct. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 11 – CONCENTRATIONS Significant Customers During the year ended October 31, 2022, the Company had no customers from whom it generated sales greater than 10% of net revenues. During the year ended October 31, 2021, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $ 2,484,173 12 468,149 11 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Oct. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 12 - EMPLOYEE BENEFIT PLANS The Company’s U.S. subsidiaries maintain a 401(k)-retirement plan. The plan allows the Company to make matching contributions of 4 138,260 123,215 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
SEGMENT ANALYSIS
SEGMENT ANALYSIS | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT ANALYSIS | NOTE 13 - 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, 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 years ended October 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 October 31, 2022 and 2021 NOTE 13 -SEGMENT ANALYSIS (Continued) SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Year Ended October 31, 2022 Net Revenues $ 14,724,688 $ 7,501,115 $ - $ 22,225,803 Cost of Revenues 2,941,569 4,093,546 - 7,035,115 Gross Profit 11,783,119 3,407,569 - 15,190,688 Research & Development 2,207,500 30,420 - 2,237,920 Selling, General & Administrative 2,563,554 2,654,565 2,730,585 7,948,704 Total Operating Expenses 4,771,054 2,684,985 2,730,585 10,186,624 Income (Loss) from Operations 7,012,065 722,584 (2,730,585 ) 5,004,064 Other Income (Expense) Other Income 55,715 79,204 3,056 137,975 Interest Expense (9,233 ) (71 ) (400 ) (9,704 ) Total Other Income 46,482 79,133 2,656 128,271 Income (Loss) before Income Taxes 7,058,547 801,717 (2,727,929 ) 5,132,335 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (868,162 ) 39,422 (176,400 ) (1,005,140 ) Deferred Tax Benefit (Expense) 31,907 (41,657 ) 183,776 174,026 Total Income Tax (Expense) Benefit (836,255 ) (2,235 ) 7,376 (831,114 ) Net Income (Loss) $ 6,222,292 $ 799,482 $ (2,720,553 ) $ 4,301,221 Supplemental Disclosures Total Assets $ 33,348,805 $ 12,662,109 $ 916,544 $ 46,927,458 Total Liabilities $ 2,432,750 $ 526,195 $ 585,704 $ 3,544,649 Revenues from Intercompany Sales - eliminated from sales above $ 2,406,717 $ 396,015 $ 2,720,000 $ 5,522,732 Depreciation and Amortization $ 602,583 $ 96,776 $ 39,370 $ 738,729 Purchases of Long-lived Assets $ 1,123,475 $ 36,862 $ 90,887 $ 1,251,224 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 13 -SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Year Ended October 31, 2021 Net Revenues $ 15,804,222 $ 5,527,305 $ - $ 21,331,527 Cost of Revenues 3,169,835 3,391,974 - 6,561,809 Gross Profit 12,634,387 2,135,331 - 14,769,718 Research & Development 2,509,107 473,569 - 2,982,676 Selling, General & Administrative 3,231,733 2,304,300 2,413,492 7,949,525 Total Operating Expenses 5,740,840 2,777,869 2,413,492 10,932,201 Income (Loss) from Operations 6,893,547 (642,538 ) (2,413,492 ) 3,837,517 Other Income (Expense) Other Income 354,373 1,079,374 1,635 1,435,382 Interest Expense (1,738 ) (365 ) (17,552 ) (19,655 ) Total Other Income (Expense) 352,635 1,079,009 (15,917 ) 1,415,727 Income (Loss) before Income Taxes 7,246,182 436,471 (2,429,409 ) 5,253,244 Income Tax (Expense) Benefit Current Tax Benefit (Expense) 35,032 (51,624 ) - (16,592 ) Deferred Tax (Expense) Benefit (418,338 ) 409,205 (279,754 ) (288,887 ) Total Income Tax (Expense) Benefit (383,306 ) 357,581 (279,754 ) (305,479 ) Net Income (Loss) $ 6,862,876 $ 794,052 $ (2,709,163 ) $ 4,947,765 Supplemental Disclosures Total Assets $ 30,631,442 $ 14,117,747 $ 716,230 $ 45,465,419 Total Liabilities $ 3,166,999 $ 849,306 $ 400,041 $ 4,416,346 Revenues from Intercompany Sales - eliminated from sales above $ 2,075,387 $ 355,608 $ 3,470,000 $ 5,900,995 Depreciation and Amortization $ 780,434 $ 114,022 $ 29,617 $ 924,073 Purchases of Long-lived Assets $ 793,995 $ 51,907 $ 118,302 $ 964,204 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 12 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
DISAGGREGATION OF REVENUE | NOTE 14 - DISAGGREGATION OF REVENUE SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION For the Year Ended October 31, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 5,668,948 $ 4,566,349 $ 10,235,297 Europe 1,559,778 2,900,906 4,460,684 Australia/Asia 5,723,970 - 5,723,970 Middle East/Africa 1,771,992 33,860 1,805,852 Total Revenues $ 14,724,688 $ 7,501,115 $ 22,225,803 Major Goods/Service Lines Equipment Sales $ 8,771,050 $ 1,544,002 $ 10,315,052 Equipment Rentals 1,844,775 - 1,844,775 Software Sales 1,014,867 - 1,014,867 Engineering Parts - 3,530,407 3,530,407 Services 3,093,996 2,426,706 5,520,702 Total Revenues $ 14,724,688 $ 7,501,115 $ 22,225,803 Goods transferred at a point in time $ 9,785,917 $ 1,562,799 $ 11,348,716 Services transferred over time 4,938,771 5,938,316 10,877,087 Total Revenues $ 14,724,688 $ 7,501,115 $ 22,225,803 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 14 - DISAGGREGATION OF REVENUE (Continued) For the Year Ended October 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 3,434,552 $ 2,188,812 $ 5,623,364 Europe 5,623,227 3,338,493 8,961,720 Australia/Asia 5,867,710 - 5,867,710 Middle East/Africa 878,733 - 878,733 Total Revenues $ 15,804,222 $ 5,527,305 $ 21,331,527 Major Goods/Service Lines Equipment Sales $ 10,914,124 $ 1,421,614 $ 12,335,738 Equipment Rentals 2,324,773 - 2,324,773 Software Sales 669,968 - 669,968 Engineering Parts - 3,239,866 3,239,866 Services 1,895,357 865,825 2,761,182 Total Revenues $ 15,804,222 $ 5,527,305 $ 21,331,527 Goods transferred at a point in time $ 11,588,099 $ 1,421,614 $ 13,009,713 Services transferred over time 4,216,123 4,105,691 8,321,814 Total Revenues $ 15,804,222 $ 5,527,305 $ 21,331,527 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES Employment Agreements Annmarie Gayle Pursuant to the terms of an employment agreement dated March 16, 2017, the Company employs Ms. Gayle as its Chief Executive Officer on a full-time basis and a member of its Board of Directors. With effect from July 1, 2019, Ms. Gayle’s annual salary was increased from $ 230,000 305,000 100,000 The agreement has no definitive term and may be terminated only upon twelve months’ prior written notice by Ms. Gayle. In the event that the Company terminates her at any time without cause, she is entitled to a payment equal to her annual salary as well as a separation bonus of $ 150,000 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 15 – COMMITMENTS AND CONTINGENCIES (Continued) Employment Agreements (Continued) Blair Cunningham Under the terms of an employment contract dated January 1, 2013, our wholly owned subsidiary Coda Octopus Products, Inc. employs Blair Cunningham as its Chief Executive Officer and President of Technology. He is being paid an annual base salary of $ 200,000 225,000 The agreement may be terminated only upon twelve-month prior written notice without cause. The Company may terminate the agreement for cause, immediately and without notice. Among others, “for cause” includes gross misconduct, a serious or repeated breach of the agreement and negligence and incompetence as reasonably determined by the Company’s Board. The agreement includes an 18-month non-compete and non-solicitation provision. Kevin Kane Pursuant to the terms of an Employment Agreement dated May 7, 2021, as amended and modified, Kevin Kane was appointed the Chief Executive Officer of Colmek commencing July 6, 2021. The Employment Agreement provides for an annual base salary of $ 200,000 12,000 15,000 The agreement may be terminated by the Company at any time. In the event that the Company terminates the employment agreement for whatever reason, the following severance payments apply: Year 1 of employment 2 Weeks Year 2 of employment 1 Month Year 3 of employment 4 Months The agreement includes a 12-month non-compete and non-solicitation provision. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2021 and 2020 NOTE 15 – COMMITMENTS AND CONTINGENCIES (Continued) Michael Midgley (retired in June 2022) Pursuant to the terms of an employment agreement dated June 1, 2011, Mike Midgley was appointed the Chief Executive Officer of our wholly owned subsidiary Coda Octopus Colmek, Inc. and our Chief Financial Officer. He is being paid an annual salary of $ 210,000 Amendment to Michael Midgley’s Employment Agreement The Company and Mr. Midgely entered into an agreement for the Amendment of his Employment Agreement on February 15, 2021. The following amendments were made: Role Chief Financial Officer of the Company. Removing the position of Divisional CEO of Coda Octopus Colmek. Reduction in hours Working hours reduced to approximately 60 126,000 Paid Time Off Reduced proportionately and is now 12 days Benefits Reduced proportionately The agreement may be terminated at any time upon 4 months prior written notice. The Company may terminate the agreement for cause, immediately and without notice. Among others, “for cause” includes gross misconduct, a serious or repeated breach of the agreement and negligence and incompetence as reasonably determined by the Company’s Board. The agreement includes a 12-month non-compete and non-solicitation provision. Mr. Midgley retired from the company effective June 30, 2022. Nathan Parker Pursuant to the terms of an Employment Agreement dated May 10, 2022, Nathan Parker was appointed our Chief Financial Officer commencing June 6, 2022. The Employment Agreement provides for an annual base salary of $ 230,000 . As a further inducement, he was granted 9,506 restricted stock units out of the Company’s 2017 Stock Incentive Plan that vest in three equal annual instalments commencing on the first anniversary of grant. Mr. Parker also received a signing bonus of $ 20,000 . Mr. Parker is entitled to 20 vacation days in addition to any public holiday. The Company may terminate the agreement at any time. In the event that the Company terminates the employment agreement for whatever reason, the following severance payments apply: Year 1 of employment 1 Month Base Salary Year 2 of employment 3 Months Base Salary Year 3 of employment 6 Months Base Salary The agreement includes a 12-month non-compete and non-solicitation provision. Litigation From time to time, we may be a party to or be involved with legal proceedings, governmental investigations or inquires, claims or litigation that are related to our business. We are not presently party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business or its financial condition. |
PAYROLL PROTECTION PROGRAM
PAYROLL PROTECTION PROGRAM | 12 Months Ended |
Oct. 31, 2022 | |
Payroll Protection Program | |
PAYROLL PROTECTION PROGRAM | NOTE 16 – PAYROLL PROTECTION PROGRAM In the year ended October 31, 2021, two of our US companies, received $ 648,872 648,872 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS The Company has evaluated subsequent events occurring through the date that the financial statements were issued, for events requiring, recording or disclosure in the October 31, 2022, consolidated financial statements and there were no subsequent events to report. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a. Basis of Presentation The Company has adopted the Financial Accounting Standards Board (FASB) Codification (Codification). The Codification is the single official source of authoritative accounting principles generally accepted in the United States of America (U.S. GAAP) recognized by the FASB to be applied by nongovernmental entities, and all the Codification’s content carries the same level of authority. |
Cash | b. Cash The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. At times such investments may be in excess of federal deposit insurance limits. |
Trade Accounts Receivable | c. Trade Accounts Receivable Trade accounts receivable are recorded net of the allowance for doubtful accounts. The Company provides for an allowance for doubtful collections that is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Balances still outstanding after the Company has used reasonable collection efforts are written off though a charge to the valuation allowance and a credit to trade accounts receivable. The allowance for doubtful accounts was $ 0 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) |
Property and Equipment | d. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for minor replacements, maintenance and repairs which do not increase the useful lives of the property and equipment are charged to operations as incurred. Major additions and improvements are capitalized. Depreciation and amortization are computed using the straight-line method over their estimated useful lives which is typically three to five years 50 70 We own substantially all our facilities and believe that the effect of adopting Accounting Standards Codification 842, “Leases”, has been immaterial. |
Advertising | e. Advertising Coda follows the policy of charging the costs of advertising to expense as incurred, which aggregated $ 0 5,042 |
Inventory | f. 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 October 31, October 31, 2022 2021 Raw materials and parts $ 7,219,344 $ 7,525,419 Work in progress 383,427 919,619 Finished goods 2,424,340 2,246,139 Total Inventory $ 10,027,111 $ 10,691,177 |
Estimates | g. 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, the valuation of the deferred tax asset, and the valuation of goodwill. |
Revenue Recognition | h. Revenue Recognition The Company recognizes revenue under the Financial Accounting Standards Board’s Topic 606, Revenue from Contracts with Customers CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) h. Revenue Recognition (Continued) Topic 606 has established a five-step process to determine the amount of revenue to record from contracts with customers. The five steps are: ● Determine if we have a contract with a customer; ● Determine the performance obligations in that contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations; and ● Determine when to recognize revenue. Our revenues are earned under formal contracts with our customers and are derived from both sales and rental of underwater technologies and equipment for real time 3D imaging, mapping, defense and survey applications and from the engineering services which we provide primarily to prime defense contractors. Our contracts do not include the possibility for additional contingent consideration so that our determination of the contract price does not involve having to consider potential additional variable consideration. Our sales do not include a right of return by the customer. With regard to our Marine Technology Business (“Products Business”), all of our products are sold on a stand-alone basis and those market prices are evidence of the value of the products. To the extent that we also provide services (e.g., installation, training, post-sales technical support etc.), those services are either included as part of the product or are subject to written contracts based on the stand-alone value of those services. Revenue from the sale of services is recognized when those services have been provided to the customer and evidence of the provision of those services exist. Revenue derived from either our subscription package offerings or rental of our equipment is recognized when performance obligations are met, in particular, on a daily basis during the subscription or rental period. For arrangements with multiple performance obligations, we recognize product revenue by allocating the transaction revenue to each performance obligation based on the relative fair value of each deliverable and recognize revenue when performance obligations are met including when equipment is delivered, and for rental of equipment, when installation and other services are performed. Our contracts sometimes require customer payments in advance of revenue recognition 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. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) h. Revenue Recognition (Continued) 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. 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 October 31, 2022 and 2021, we had deferred commissions of $ 0 . Amortization expense related to deferred commissions was $ 0 and $ 3,884 in the years ended October 31, 2022 and 2021, respectively. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (Continued) h. Revenue Recognition (Continued) Other Revenue Disclosures See Note 13 – 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. |
Concentrations of Risk | i. Concentrations of Risk Credit losses, if any, have been provided for in the consolidated financial statements and are based on management’s expectations. The Company’s accounts receivables are subject to potential concentrations of credit risk, since a significant part of the Company’s sales are to a small number of companies and, even though these are generally established businesses, market fluctuations such as the price of oil may affect our customers’ ability to meet their obligations to us. Furthermore, Trade disputes may result in impairment or delays in receivables. The Company’s bank deposits are held with financial institutions both in and outside the USA. At times, such amounts may be in excess of applicable government mandated insurance limits. The Company has not experienced any losses in such accounts or lack of access to its cash, and believes it is not exposed to significant risk of loss with respect to cash. |
Contracts in Progress (Unbilled Receivables and Deferred Revenue) | j. Contracts in Progress (Unbilled Receivables and Deferred Revenue) 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 $ 602,115 1,080,384 Our Deferred Revenue of $ 790,458 1,879,790 Revenue received as part of sales of equipment includes a provision for warranty or through life support (TLS) and is treated as deferred revenue, along with extended warranty sales or TLS, which may be purchased by customers. These amounts are amortized over the relevant warranty or TLS period (12 months is our standard warranty or 24, 36 or 60 months for TLS) from the date of sale. These amounts are stated on the consolidated balance sheets as a component of Deferred Revenue and were $ 229,238 277,937 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (CONTINUED) |
Income Taxes | k. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification 740, Income Taxes Deferred tax assets and liabilities are the amounts by which the Company’s future income taxes are expected to be impacted by these differences as they reverse. Deferred tax assets are based on differences that are expected to decrease future income taxes as they reverse. Correspondingly, deferred tax liabilities are based on differences that are expected to increase future income taxes as they reverse. Note 7 below discusses the amounts of deferred tax assets and liabilities, and also presents the impact of significant differences between financial reporting income and taxable income. For income tax purposes, the Company uses the percentage of completion method of recognizing revenues on long-term contracts which is consistent with the Company’s financial reporting under U.S. GAAP. |
Goodwill and Intangible Assets | l. Goodwill and Intangible Assets Goodwill and Intangible assets consist principally of the excess of cost over the fair value of net assets acquired (or goodwill), customer relationships, non-compete agreements and licenses. Goodwill was allocated to our reporting units based on the original purchase price allocation. Goodwill is not amortized and is evaluated for impairment annually or more often if circumstances indicate impairment may exist. Customer relationships, non-compete agreements, patents and licenses are being amortized on a straight-line basis over periods of 2 to 15 years Step 1 of the goodwill impairment test, used to identify potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value, which is based on future cash flows, exceeds the carrying amount, goodwill is not considered impaired. The Company has adopted Accounting Standards Codification 2017 – 04, simplifying the Test for Goodwill Impairment, which permits the Company to impair the difference between carrying amounts in excess of the fair value of the reporting unit as the reduction in goodwill. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (Continued) l. Goodwill and Intangible Assets (Continued) At the end of each year, we evaluate goodwill on a separate reporting unit basis to assess recoverability, and impairments, if any, are recognized in earnings. An impairment loss would be recognized in an amount equal to the excess of the carrying amount of the reporting unit over the fair value of the reporting unit. There were no |
Fair Value of Financial Instruments | m. 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 | n. 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 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. For the years ended October 31, 2022 and 2021, the Company recorded an aggregate transaction gain (loss) of $ 431,314 195,341) |
Long-Lived Assets | o. Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. No |
Research and Development | p. Research and Development Research and development costs consist of expenditures for the development of present and future patents and technology, which are not capitalizable. Under current legislation, we are eligible for UK tax credits related to our qualified research and development expenditures. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (Continued) |
Stock Based Compensation | q. Stock Based Compensation In accordance with the accounting rules for stock compensation, for time-based awards, the Company is accruing a stock compensation expense and increase to additional paid in capital based on the market value of the common stock as of the grant date throughout the vesting period. The vesting period for the options is 36 months and is based on the employee’s continuous service to the Company. In addition, the Company has issued Restricted Stock Awards (RSA) The vesting period is between 6 and 36 months and is based on the employee’s/consultant’s continued service for the vesting period. Prior to vesting, the awards are subject to forfeiture in the whole or in part under certain circumstances. We use the Black-Scholes option pricing model to determine the fair value for equity instruments granted to employees. |
Comprehensive Income | r. Comprehensive Income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Comprehensive income includes gains and losses on foreign currency translation adjustments and is included as a component of stockholders’ equity. |
Earnings per Share | s. Earnings per Share We compute basic earnings per share by dividing the income attributable to common shareholders by the weighted average number of common shares outstanding in the reporting period. Following is a reconciliation of earnings from continuing operations and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share: SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Year Year Ended Ended October 31 October 31 Fiscal Period 2022 2021 Numerator: Net Income $ 4,301,221 $ 4,947,765 Denominator: Basic weighted average common shares outstanding 10,863,674 10,804,074 Unused portion of options and restricted stock awards 417,673 505,666 Diluted outstanding shares 11,281,347 11,309,740 Net income per share Basic $ 0.40 $ 0.46 Diluted $ 0.38 $ 0.44 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (Continued) |
Recent Accounting Pronouncements | t. Recent Accounting Pronouncements There have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements. |
Treasury Stock | u. Treasury Stock Repurchases of Restricted Stock Awards or common stock are classified as treasury stock on our Consolidated Balance Sheet. We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in our Consolidated Balance Sheet. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a reduction of retained earnings in our Consolidated Balance Sheet. |
SUMMARY OF ACCOUNTING POLICIE_2
SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [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 October 31, October 31, 2022 2021 Raw materials and parts $ 7,219,344 $ 7,525,419 Work in progress 383,427 919,619 Finished goods 2,424,340 2,246,139 Total Inventory $ 10,027,111 $ 10,691,177 |
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED | Following is a reconciliation of earnings from continuing operations and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share: SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Year Year Ended Ended October 31 October 31 Fiscal Period 2022 2021 Numerator: Net Income $ 4,301,221 $ 4,947,765 Denominator: Basic weighted average common shares outstanding 10,863,674 10,804,074 Unused portion of options and restricted stock awards 417,673 505,666 Diluted outstanding shares 11,281,347 11,309,740 Net income per share Basic $ 0.40 $ 0.46 Diluted $ 0.38 $ 0.44 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Other Income and Expenses [Abstract] | |
SCHEDULE OF OTHER INCOME | Other Income consisted of the following components: SCHEDULE OF OTHER INCOME October 31, October 31, 2022 2021 PPP Loans $ - $ 648,872 Employee Retention Credits payroll tax credits 88,917 701,568 Other Income 49,058 84,942 Total Other Income, net $ 137,975 $ 1,435,382 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF OTHER INTANGIBLE ASSETS | Other intangibles consisted of the following as of: SCHEDULE OF OTHER INTANGIBLE ASSETS October 31, October 31, 2022 2021 Customer relationships (weighted average life of 10 $ 720,592 $ 720,592 Non-compete agreements (weighted average life of 3 198,911 198,911 Patents and other (weighted average life of 10 675,572 585,483 Total identifiable intangible assets - gross carrying value 1,595,075 1,504,986 Less: accumulated amortization (1,152,789 ) (1,092,711 ) Total intangible assets, net $ 442,286 $ 412,275 |
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSES | Future estimated annual amortization expenses as of October 31, 2022 is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSES Years Ending October 31, Amount 2023 52,089 2024 42,877 2025 27,533 2026 24,442 Thereafter 295,345 Totals $ 442,286 |
SCHEDULE OF GOODWILL | Goodwill consisted of the following as of: SCHEDULE OF GOODWILL October 31, October 31, 2022 2021 Coda Octopus Colmek, Inc. $ 2,038,669 $ 2,038,669 Coda Octopus Products, Ltd 62,315 62,315 Coda Octopus Martech, Ltd 1,281,124 1,281,124 Total Goodwill $ 3,382,108 $ 3,382,108 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Oct. 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 October 31, October 31, 2022 2021 Buildings $ 5,419,946 $ 5,298,028 Land 200,000 200,000 Office machinery and equipment 1,556,030 1,622,871 Rental assets 2,252,292 2,326,486 Furniture, fixtures and improvements 1,108,787 1,218,217 Totals 10,537,055 10,665,602 Less: accumulated depreciation (4,704,523 ) (4,628,501 ) Total Property and Equipment, net $ 5,832,532 $ 6,037,101 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SUMMARY OF OTHER CURRENT ASSETS | Other current assets consisted of the following at: SUMMARY OF OTHER CURRENT ASSETS October 31, October 31, 2022 2021 Deposits $ 18,631 $ 63,992 Other Tax Receivables 151,217 - Employee Retention Credit Receivables 173,213 563,627 Total Other Current Assets $ 343,061 $ 627,619 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | SCHEDULE OF STOCK OPTION ACTIVITY Stock Options Total Weighted Average Exercise Price Exercisable Weighted Average Exercise Price Non-Vested Weighted Average Exercise Price Outstanding at October 31, 2020 561,000 $ 4.65 - $ - 561,000 $ 4.65 Granted - - - - Vested - $ 4.65 185,667 $ 4.65 (185,667 ) $ 4.65 Exercised (169,332 ) $ 4.65 (169,332 ) $ 4.65 - $ 4.65 Forfeited or cancelled (8,000 ) $ 4.65 - - (8,000 ) $ 4.65 Outstanding at October 31, 2021 383,668 $ 4.65 16,335 - 367,333 $ 4.65 Granted - - - - Vested - $ 4.65 183,668 $ 4.65 (183,668 ) $ 4.65 Exercised (36,667 ) $ 4.65 (36,667 ) $ 4.65 - $ 4.65 Forfeited or cancelled (39,834 ) $ 4.65 (4,333 ) - (35,501 ) $ 4.65 Outstanding at October 31, 2022 307,167 $ 4.65 159,003 $ 4.65 148,164 $ 4.65 Aggregate Intrinsic Value October 31, 2021 $ 1,446,835 $ 61,746 $ 1,385,089 Aggregate Intrinsic Value October 31, 2022 $ 544,175 $ 281,689 $ 262,486 |
SCHEDULE OF RESTRICTED STOCK AWARDS | SCHEDULE OF RESTRICTED STOCK AWARDS Restricted Stock Awards (“RSA”) Total Weighted Average Exercise Price Exercisable Weighted Average Exercise Price Non-Vested Weighted Average Exercise Price Outstanding at October 31, 2020 - $ - - $ - - $ - Granted 127,500 $ 8.80 - $ 8.80 127,500 $ 8.80 Vested - $ 8.80 - $ 8.80 - $ 8.80 Exercised - $ 8.80 - $ 8.80 - $ 8.80 Treasury Stock - $ 8.80 - $ 8.80 - $ 8.80 Forfeited or cancelled (5,500 ) $ 8.80 - $ 8.80 (5,500 ) $ 8.80 Outstanding at October 31, 2021 122,000 $ 8.80 - $ 8.80 122,000 $ 8.80 Granted 64,687 $ 7.15 - $ 7.15 64,687 $ 7.15 Vested (53,733 ) $ 5.05 - $ 5.05 (53,733) $ 5.05 Exercised - $ - - $ - - $ - Treasury Stock (5,467 ) $ 5.18 $ 5.18 (5,467) $ 5.18 Forfeited or cancelled (16,981 ) $ 8.43 - $ 8.43 (16,981 ) $ 8.43 $ - Outstanding at October 31, 2022 110,506 $ 8.10 - $ 8.10 110,506 $ 8.10 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF PROVISION (BENEFIT) FOR INCOME TAXES | The provision (benefit) for income taxes comprises: SCHEDULE OF PROVISION (BENEFIT) FOR INCOME TAXES October 31, October 31, 2022 2021 Current federal expense $ 849,580 $ (25,429 ) Current state income tax expense 159,900 - Foreign tax (benefit) expense (4,340 ) 42,021 Total current tax expense 1,005,140 16,592 Deferred federal (benefit) expense (174,026 ) 288,887 Deferred Tax (Benefit) Expense (174,026 ) 288,887 Total Income Tax Expense $ 831,114 $ 305,479 |
SCHEDULE OF RECONCILIATION OF INCOME TAX BENEFIT | The expense for income taxes differed from the U.S. statutory rate due to the following: SCHEDULE OF RECONCILIATION OF INCOME TAX BENEFIT October 31, October 31, 2022 2021 Statutory tax rate 21.0 % 21.0 % R&D Relief (10.6 )% (18.4 )% Change in valuation allowance 3.7 % 0.0 % Foreign tax (benefit) expense (0.9 )% 3.2 % State Income Tax 3.0 % 0.0 % Total 16.2 % 5.8 % |
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES | Significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES October 31, October 31, 2022 2021 Noncurrent deferred tax assets Temporary differences U.S. NOL carryforwards $ - $ 15,930 Deferred Revenue 4,830 - Restricted Stock Awards 272,841 72,970 Book/Tax Depreciation (17,861 ) (12,124 ) Foreign fixed assets (84,381 ) 18,168 Foreign NOL carryforwards 409,100 148,650 Total 584,529 243,594 Valuation allowance (324,719 ) (166,818 ) Total Deferred Asset $ 259,810 $ 76,776 |
NOTE PAYABLE (Tables)
NOTE PAYABLE (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF NOTES PAYABLE | Note payable consisted of the following at: SCHEDULE OF NOTES PAYABLE October 31, October 31, 2022 2021 Secured note payable to HSBC NA with interest payable on the 28 th 4.56 43,777 December 2021. $ - $ 63,559 . Total - 63,559 Less: current portion - (63,559 ) Total Long Term Note Payable $ - $ - |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
SCHEDULE OF OTHER COMPREHENSIVE INCOME (LOSS) | A reconciliation of the other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheets is as follows: SCHEDULE OF OTHER COMPREHENSIVE INCOME (LOSS) October 31, October 31, 2022 2021 Balance, beginning of year $ (1,667,059 ) $ (2,321,278 ) Total other comprehensive income (loss) for the year - foreign currency translation adjustment (3,070,065 ) 654,219 Balance, end of year $ (4,737,124 ) $ (1,667,059 ) |
SEGMENT ANALYSIS (Tables)
SEGMENT ANALYSIS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION | SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Year Ended October 31, 2022 Net Revenues $ 14,724,688 $ 7,501,115 $ - $ 22,225,803 Cost of Revenues 2,941,569 4,093,546 - 7,035,115 Gross Profit 11,783,119 3,407,569 - 15,190,688 Research & Development 2,207,500 30,420 - 2,237,920 Selling, General & Administrative 2,563,554 2,654,565 2,730,585 7,948,704 Total Operating Expenses 4,771,054 2,684,985 2,730,585 10,186,624 Income (Loss) from Operations 7,012,065 722,584 (2,730,585 ) 5,004,064 Other Income (Expense) Other Income 55,715 79,204 3,056 137,975 Interest Expense (9,233 ) (71 ) (400 ) (9,704 ) Total Other Income 46,482 79,133 2,656 128,271 Income (Loss) before Income Taxes 7,058,547 801,717 (2,727,929 ) 5,132,335 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (868,162 ) 39,422 (176,400 ) (1,005,140 ) Deferred Tax Benefit (Expense) 31,907 (41,657 ) 183,776 174,026 Total Income Tax (Expense) Benefit (836,255 ) (2,235 ) 7,376 (831,114 ) Net Income (Loss) $ 6,222,292 $ 799,482 $ (2,720,553 ) $ 4,301,221 Supplemental Disclosures Total Assets $ 33,348,805 $ 12,662,109 $ 916,544 $ 46,927,458 Total Liabilities $ 2,432,750 $ 526,195 $ 585,704 $ 3,544,649 Revenues from Intercompany Sales - eliminated from sales above $ 2,406,717 $ 396,015 $ 2,720,000 $ 5,522,732 Depreciation and Amortization $ 602,583 $ 96,776 $ 39,370 $ 738,729 Purchases of Long-lived Assets $ 1,123,475 $ 36,862 $ 90,887 $ 1,251,224 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 13 -SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Year Ended October 31, 2021 Net Revenues $ 15,804,222 $ 5,527,305 $ - $ 21,331,527 Cost of Revenues 3,169,835 3,391,974 - 6,561,809 Gross Profit 12,634,387 2,135,331 - 14,769,718 Research & Development 2,509,107 473,569 - 2,982,676 Selling, General & Administrative 3,231,733 2,304,300 2,413,492 7,949,525 Total Operating Expenses 5,740,840 2,777,869 2,413,492 10,932,201 Income (Loss) from Operations 6,893,547 (642,538 ) (2,413,492 ) 3,837,517 Other Income (Expense) Other Income 354,373 1,079,374 1,635 1,435,382 Interest Expense (1,738 ) (365 ) (17,552 ) (19,655 ) Total Other Income (Expense) 352,635 1,079,009 (15,917 ) 1,415,727 Income (Loss) before Income Taxes 7,246,182 436,471 (2,429,409 ) 5,253,244 Income Tax (Expense) Benefit Current Tax Benefit (Expense) 35,032 (51,624 ) - (16,592 ) Deferred Tax (Expense) Benefit (418,338 ) 409,205 (279,754 ) (288,887 ) Total Income Tax (Expense) Benefit (383,306 ) 357,581 (279,754 ) (305,479 ) Net Income (Loss) $ 6,862,876 $ 794,052 $ (2,709,163 ) $ 4,947,765 Supplemental Disclosures Total Assets $ 30,631,442 $ 14,117,747 $ 716,230 $ 45,465,419 Total Liabilities $ 3,166,999 $ 849,306 $ 400,041 $ 4,416,346 Revenues from Intercompany Sales - eliminated from sales above $ 2,075,387 $ 355,608 $ 3,470,000 $ 5,900,995 Depreciation and Amortization $ 780,434 $ 114,022 $ 29,617 $ 924,073 Purchases of Long-lived Assets $ 793,995 $ 51,907 $ 118,302 $ 964,204 |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 12 Months Ended |
Oct. 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 Year Ended October 31, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 5,668,948 $ 4,566,349 $ 10,235,297 Europe 1,559,778 2,900,906 4,460,684 Australia/Asia 5,723,970 - 5,723,970 Middle East/Africa 1,771,992 33,860 1,805,852 Total Revenues $ 14,724,688 $ 7,501,115 $ 22,225,803 Major Goods/Service Lines Equipment Sales $ 8,771,050 $ 1,544,002 $ 10,315,052 Equipment Rentals 1,844,775 - 1,844,775 Software Sales 1,014,867 - 1,014,867 Engineering Parts - 3,530,407 3,530,407 Services 3,093,996 2,426,706 5,520,702 Total Revenues $ 14,724,688 $ 7,501,115 $ 22,225,803 Goods transferred at a point in time $ 9,785,917 $ 1,562,799 $ 11,348,716 Services transferred over time 4,938,771 5,938,316 10,877,087 Total Revenues $ 14,724,688 $ 7,501,115 $ 22,225,803 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2022 and 2021 NOTE 14 - DISAGGREGATION OF REVENUE (Continued) For the Year Ended October 31, 2021 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Revenues Primary Geographical Markets Americas $ 3,434,552 $ 2,188,812 $ 5,623,364 Europe 5,623,227 3,338,493 8,961,720 Australia/Asia 5,867,710 - 5,867,710 Middle East/Africa 878,733 - 878,733 Total Revenues $ 15,804,222 $ 5,527,305 $ 21,331,527 Major Goods/Service Lines Equipment Sales $ 10,914,124 $ 1,421,614 $ 12,335,738 Equipment Rentals 2,324,773 - 2,324,773 Software Sales 669,968 - 669,968 Engineering Parts - 3,239,866 3,239,866 Services 1,895,357 865,825 2,761,182 Total Revenues $ 15,804,222 $ 5,527,305 $ 21,331,527 Goods transferred at a point in time $ 11,588,099 $ 1,421,614 $ 13,009,713 Services transferred over time 4,216,123 4,105,691 8,321,814 Total Revenues $ 15,804,222 $ 5,527,305 $ 21,331,527 |
SCHEDULE OF COMPONENTS OF INVEN
SCHEDULE OF COMPONENTS OF INVENTORY (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Accounting Policies [Abstract] | ||
Raw materials and parts | $ 7,219,344 | $ 7,525,419 |
Work in progress | 383,427 | 919,619 |
Finished goods | 2,424,340 | 2,246,139 |
Total Inventory | $ 10,027,111 | $ 10,691,177 |
SCHEDULE OF EARNINGS PER SHARE
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Accounting Policies [Abstract] | ||
Net Income | $ 4,301,221 | $ 4,947,765 |
Basic weighted average common shares outstanding | 10,863,674 | 10,804,074 |
Unused portion of options and restricted stock awards | 417,673 | 505,666 |
Diluted outstanding shares | 11,281,347 | 11,309,740 |
Basic | $ 0.40 | $ 0.46 |
Diluted | $ 0.38 | $ 0.44 |
SUMMARY OF ACCOUNTING POLICIE_3
SUMMARY OF ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Allowance for doubtful accounts receivable | $ 0 | $ 0 |
Depreciation cost of goods sold allocation percentage | 70% | |
Advertising Expense | 0 | $ 5,042 |
Deferred Costs | 0 | 0 |
Amortization of Deferred Sales Commissions | 0 | 3,884 |
Unbilled receivables | 602,115 | 1,080,384 |
Deferred revenue | 790,458 | 1,879,790 |
Deferred revenue | $ 229,238 | 277,937 |
Finite lived intangible asset amortization period | Customer relationships, non-compete agreements, patents and licenses are being amortized on a straight-line basis over periods of 2 to 15 years | |
Impairment charges on goodwill and intangible assets | $ 0 | 0 |
Gain loss on foreign currency translation | 431,314 | 195,341 |
Impairment, Long-Lived Asset, Held-for-Use | $ 0 | $ 0 |
Maximum [Member] | Options Held [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 36 months | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | three to five years | |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 50 |
SCHEDULE OF OTHER INCOME (Detai
SCHEDULE OF OTHER INCOME (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
PPP Loans | $ 648,872 | |
Employee Retention Credits payroll tax credits | 88,917 | 701,568 |
Other Income | 49,058 | 84,942 |
Total Other Income, net | $ 137,975 | $ 1,435,382 |
SCHEDULE OF OTHER INTANGIBLE AS
SCHEDULE OF OTHER INTANGIBLE ASSETS (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total identifiable intangible assets - gross carrying value | $ 1,595,075 | $ 1,504,986 |
Less: accumulated amortization | (1,152,789) | (1,092,711) |
Total intangible assets, net | 442,286 | 412,275 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total identifiable intangible assets - gross carrying value | 720,592 | 720,592 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total identifiable intangible assets - gross carrying value | 198,911 | 198,911 |
Patents And Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total identifiable intangible assets - gross carrying value | $ 675,572 | $ 585,483 |
SCHEDULE OF CARRYING VALUE OF I
SCHEDULE OF CARRYING VALUE OF IDENTIFIABLE INTANGIBLE ASSETS (Details) (Parenthetical) | 12 Months Ended |
Oct. 31, 2022 | |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of intangible assets | 10 years |
Noncompete Agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of intangible assets | 3 years |
Patents And Other [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of intangible assets | 10 years |
SCHEDULE OF ESTIMATED FUTURE AM
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSES (Details) | Oct. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 52,089 |
2024 | 42,877 |
2025 | 27,533 |
2026 | 24,442 |
Thereafter | 295,345 |
Totals | $ 442,286 |
SCHEDULE OF GOODWILL (Details)
SCHEDULE OF GOODWILL (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Total Goodwill | $ 3,382,108 | $ 3,382,108 |
Coda Octopus Colmek Inc [Member] | ||
Total Goodwill | 2,038,669 | 2,038,669 |
Coda Octopus Products Ltd [Member] | ||
Total Goodwill | 62,315 | 62,315 |
Coda Octopus Martech Ltd [Member] | ||
Total Goodwill | $ 1,281,124 | $ 1,281,124 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 60,077 | $ 50,379 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Totals | $ 10,537,055 | $ 10,665,602 |
Less: accumulated depreciation | (4,704,523) | (4,628,501) |
Total Property and Equipment, net | 5,832,532 | 6,037,101 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | 5,419,946 | 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 | 1,556,030 | 1,622,871 |
Rental Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | 2,252,292 | 2,326,486 |
Furniture, Fixtures and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Totals | $ 1,108,787 | $ 1,218,217 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 678,652 | $ 873,694 |
SUMMARY OF OTHER CURRENT ASSETS
SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits | $ 18,631 | $ 63,992 |
Other Tax Receivables | 151,217 | |
Employee Retention Credit Receivables | 173,213 | 563,627 |
Total Other Current Assets | $ 343,061 | $ 627,619 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Equity [Abstract] | ||
Number of stock options, outstanding, beginning balance | 383,668 | 561,000 |
Weighted average exercise price of options, outstanding, beginning balance | $ 4.65 | $ 4.65 |
Number of exercisable stock options, outstanding, beginning balance | 16,335 | |
Weighted average exercise price of options, exercisable outstanding, beginning balance | ||
Number of nonvested stock options, outstanding, beginning balance | 367,333 | 561,000 |
Weighted average exercise price of nonvested options, outstanding | $ 4.65 | $ 4.65 |
Number of nonvested stock options, granted | ||
Number of exercisable stock options, granted | ||
Weighted average exercise price of options, exercisable granted | ||
Number of stock options, vested | ||
Weighted average exercise price of options, vested | 4.65 | 4.65 |
Number of exercisable stock options, vested | 183,668 | 185,667 |
Weighted average exercise price of options, exercisable vested | $ 4.65 | $ 4.65 |
Number of nonvested stock options, vested | (183,668) | (185,667) |
Weighted average exercise price of nonvested options, outstanding | $ 4.65 | $ 4.65 |
Number of stock options, exercised | (36,667) | (169,332) |
Weighted average exercise price of options, excerised | $ 4.65 | $ 4.65 |
Number of exercisable stock options, excerised | (36,667) | (169,332) |
Weighted average exercise price of options, exercisable exercised | $ 4.65 | $ 4.65 |
Number of nonvested stock options, exercised | ||
Weighted average exercise price of nonvested options, outstanding | $ 4.65 | $ 4.65 |
Number of stock options, forfeited or cancelled | (39,834) | (8,000) |
Weighted average exercise price of options, Forfeited or cancelled | $ 4.65 | $ 4.65 |
Number of exercisable stock options, forfeited or cancelled | (4,333) | |
Weighted average exercise price of options, exercisable forfeited or cancelled | ||
Number of nonvested stock options, forfeited or cancelled | (35,501) | (8,000) |
Weighted average exercise price of nonvested options, outstanding | $ 4.65 | $ 4.65 |
Number of stock options, outstanding, ending balance | 307,167 | 383,668 |
Weighted average exercise price of options, outstanding, ending balance | $ 4.65 | $ 4.65 |
Number of exercisable stock options, outstanding, ending balance | 159,003 | 16,335 |
Weighted average exercise price of options, exercisable outstanding, ending balance | $ 4.65 | |
Number of nonvested stock options, outstanding, ending balance | 148,164 | 367,333 |
Aggregate intrinsic value, total | $ 544,175 | $ 1,446,835 |
Aggregate intrinsic value, exercisable | 281,689 | 61,746 |
Aggregate intrinsic value, non-vested | $ 262,486 | $ 1,385,089 |
SCHEDULE OF RESTRICTED STOCK AW
SCHEDULE OF RESTRICTED STOCK AWARDS (Details) - $ / shares | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Equity [Abstract] | ||
Number of restricted stock awards, beginning balance | 122,000 | |
Weighted average exercise price of restricted stock awards, beginning | $ 8.80 | |
Number of restricted stock awards, outstanding exercisable beginning | ||
Weighted average exercise price of restricted stock awards, outstanding beginning exercisable | $ 8.80 | |
Number of restricted stock awards, outstanding non-vested, beginning | 122,000 | |
Weighted average exercise price of restricted stock awards, outstanding non-vested, beginning | $ 8.80 | |
Number of restricted stock awards, granted | 64,687 | 127,500 |
Weighted average exercise price of restricted stock awards, granted | $ 7.15 | $ 8.80 |
Number of restricted stock awards, granted exercisable | ||
Weighted average exercise price of restricted stock awards, granted exercisable | $ 7.15 | $ 8.80 |
Number of restricted stock awards, granted non-vested | 64,687 | 127,500 |
Weighted average exercise price of restricted stock awards, granted non-vested | $ 7.15 | $ 8.80 |
Number of restricted stock awards, vested | (53,733) | |
Weighted average exercise price of restricted stock awards, vested | $ 5.05 | $ 8.80 |
Number of restricted stock awards, vested exercisable | ||
Weighted average exercise price of restricted stock awards, vested exercisable | $ 5.05 | $ 8.80 |
Number of restricted stock awards, vested non-vested | 53,733 | |
Weighted average exercise price of restricted stock awards, vested non-vested | $ 5.05 | $ 8.80 |
Number of restricted stock awards, exercised | ||
Weighted average exercise price of restricted stock awards, exercised | $ 8.80 | |
Number of restricted stock awards, exercised exercisable | ||
Weighted average exercise price of restricted stock awards, exercised exercisable | $ 8.80 | |
Number of restricted stock awards, exercised non-vested | ||
Weighted average exercise price of restricted stock awards, exercised non-vested | $ 8.80 | |
Number of restricted stock awards, treasury stock | 5,467 | |
Weighted average exercise price of restricted stock awards, treasury stock | $ 5.18 | $ 8.80 |
Number of restricted stock awards, treasury stock exercisable | ||
Weighted average exercise price of restricted stock awards, treasury stock exercisable | $ 5.18 | $ 8.80 |
Number of restricted stock awards, Treasury stock non-vested | 5,467 | |
Weighted average exercise price of restricted stock awards, treasury stock non-vested | $ 5.18 | $ 8.80 |
Number of restricted stock awards, forfeited or cancelled | (16,981) | (5,500) |
Weighted average exercise price of restricted stock awards, forfeited or cancelled | $ 8.43 | $ 8.80 |
Number of restricted stock awards, exercises exercisable | ||
Weighted average exercise price of restricted stock awards, forfeited or cancelled exercisable | $ 8.43 | $ 8.80 |
Number of restricted stock awards, forfeited or cancelled non-vested | (16,981) | (5,500) |
Weighted average exercise price of restricted stock awards, forfeited or cancelled non-vested | $ 8.43 | $ 8.80 |
Number of restricted stock awards, vested non-vested | (53,733) | |
Number of restricted stock awards, treasury stock | (5,467) | |
Number of restricted stock awards, Treasury stock non-vested | (5,467) | |
Number of restricted stock awards, ending balance | 110,506 | 122,000 |
Weighted average exercise price of restricted stock awards, ending | $ 8.10 | $ 8.80 |
Number of restricted stock awards, outstanding exercisable ending | ||
Weighted average exercise price of restricted stock awards, outstanding ending exercisable | $ 8.10 | $ 8.80 |
Number of restricted stock awards, outstanding non-vested, ending | 110,506 | 122,000 |
Weighted average exercise price of restricted stock awards, outstanding non-vested, ending | $ 8.10 | $ 8.80 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 12 Months Ended | |||
Jul. 20, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Number of exercise of options | 36,667 | 169,332 | ||
Grants in period | 64,687 | 127,500 | ||
Restricted stock awards forfeitures | 16,981 | 5,500 | ||
Number of shares of common stock vested | 183,668 | 185,667 | ||
Intrinsic value of options outstanding | $ 544,175 | $ 1,446,835 | ||
Unamortized compensation expense | 211,284 | 482,595 | ||
Total stock compensation expense | $ 1,130,917 | 1,050,821 | ||
Preferred stock, shares authorized | 5,000,000 | |||
Preferred stock, par value | $ 0.001 | |||
Series A Preferred Stock [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock shares designated | 50,000 | |||
Series C Preferred Stock [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock shares designated | 50,000 | |||
Future Years [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Unamortized compensation expense | $ 90,831 | |||
Restricted Stock [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Unamortized compensation expense | 919,633 | $ 347,476 | ||
Restricted Stock [Member] | Future Years [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Unamortized compensation expense | $ 122,306 | |||
2017 Plan [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued for options | 80,314 | |||
Number of exercise of options | 169,332 | |||
Number of shares issued for services | 25,000 | |||
Number of shares issued for services, value | $ 220,750 | |||
Grants in period | 64,687 | 127,500 | ||
Number of shares available for grant | 230,741 | 238,612 | ||
Restricted stock awards forfeitures | 8,000 | 3,000 | ||
Number of shares of common stock vested | 53,733 | |||
Restricted stock grant awards forfeited | 16,981 | |||
Number of units converted into treasury stock | 5,467 | |||
Total stock compensation expense | $ 1,130,917 | |||
2017 Plan [Member] | Share-Based Payment Arrangement, Option [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of exercise of options | 36,667 | |||
2017 Plan [Member] | Share-Based Payment Arrangement, Option [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued for options | 5,925 | |||
Two Thousand And Twenty One Stock Incentive Plan [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares available for grant | 1,000,000 |
SCHEDULE OF PROVISION (BENEFIT)
SCHEDULE OF PROVISION (BENEFIT) FOR INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current federal expense | $ 849,580 | $ (25,429) |
Current state income tax expense | 159,900 | |
Foreign tax (benefit) expense | (4,340) | 42,021 |
Total current tax expense | 1,005,140 | 16,592 |
Deferred federal (benefit) expense | (174,026) | 288,887 |
Deferred Tax (Benefit) Expense | (174,026) | 288,887 |
Total Income Tax Expense | $ 831,114 | $ 305,479 |
SCHEDULE OF RECONCILIATION OF I
SCHEDULE OF RECONCILIATION OF INCOME TAX BENEFIT (Details) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory tax rate | 21% | 21% |
R&D Relief | (10.60%) | (18.40%) |
Change in valuation allowance | 3.70% | 0% |
Foreign tax (benefit) expense | (0.90%) | 3.20% |
State Income Tax | 3% | 0% |
Total | 16.20% | 5.80% |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
U.S. NOL carryforwards | $ 15,930 | |
Deferred Revenue | 4,830 | |
Restricted Stock Awards | 272,841 | 72,970 |
Book/Tax Depreciation | (17,861) | (12,124) |
Foreign fixed assets | (84,381) | 18,168 |
Foreign NOL carryforwards | 409,100 | 148,650 |
Total | 584,529 | 243,594 |
Valuation allowance | (324,719) | (166,818) |
Total Deferred Asset | $ 259,810 | $ 76,776 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - 12 months ended Oct. 31, 2022 | USD ($) | GBP (£) |
Operating Loss Carryforwards [Line Items] | ||
Income tax reconciliation nondeductible expense research and development | $ 2,819,389 | £ 2,246,251 |
UK [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 1,300,000 | |
Operating loss carryforwards including trading loss | 480,000 | |
Operating loss carryforwards excluding trading loss | $ 820,000 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Short-Term Debt [Line Items] | ||
Total | $ 63,559 | |
Less: current portion | (63,559) | |
Total Long Term Note Payable | ||
Secured Note Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Total | $ 63,559 |
SCHEDULE OF NOTES PAYABLE (De_2
SCHEDULE OF NOTES PAYABLE (Details) (Parenthetical) - Secured Note Payable [Member] - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Short-Term Debt [Line Items] | ||
Debt interest rate | 4.56% | 4.56% |
Monthly repayment | $ 43,777 | $ 43,777 |
Debt maturity date, description | December 2021. | December 2021. |
NOTE PAYABLE (Details Narrative
NOTE PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Line of credit maximum borrowing capacity | $ 4,000,000 | |
Line of credit facility, maximum amount outstanding during period | $ 0 | $ 0 |
SCHEDULE OF OTHER COMPREHENSIVE
SCHEDULE OF OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Equity [Abstract] | ||
Balance, beginning of year | $ (1,667,059) | $ (2,321,278) |
Total other comprehensive income (loss) for the year - foreign currency translation adjustment | (3,070,065) | 654,219 |
Balance, end of year | $ (4,737,124) | $ (1,667,059) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Equity [Abstract] | ||
Other comprehensive income (loss) of foreign currency translation adjustments | $ (3,070,065) | $ 654,219 |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2022 | |
Concentration Risk [Line Items] | ||
Accounts receivable | $ 4,207,996 | $ 2,870,600 |
One Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Proceeds from Customers | $ 2,484,173 | |
Concentration risk, percentage | 12% | |
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11% | |
Accounts receivable | $ 468,149 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Employee compensation percentage | 4% | |
Employee benefit costs | $ 138,260 | $ 123,215 |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net Revenues | $ 22,225,803 | $ 21,331,527 |
Cost of Revenues | 7,035,115 | 6,561,809 |
Gross Profit | 15,190,688 | 14,769,718 |
Research & Development | 2,237,920 | 2,982,676 |
Selling, General & Administrative | 7,948,704 | 7,949,525 |
Total Operating Expenses | 10,186,624 | 10,932,201 |
INCOME FROM OPERATIONS | 5,004,064 | 3,837,517 |
Other Income (Expense) | ||
Other Income | 137,975 | 1,435,382 |
Interest Expense | (9,704) | (19,655) |
Total Other Income | 128,271 | 1,415,727 |
INCOME BEFORE INCOME TAX EXPENSE | 5,132,335 | 5,253,244 |
Income Tax (Expense) Benefit | ||
Current Tax Benefit (Expense) | (1,005,140) | (16,592) |
Deferred Tax (Expense) Benefit | 174,026 | (288,887) |
Total Income Tax Expense | (831,114) | (305,479) |
NET INCOME | 4,301,221 | 4,947,765 |
Supplemental Disclosures | ||
Total Assets | 46,927,458 | 45,465,419 |
Total Liabilities | 3,544,649 | 4,416,346 |
Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 22,225,803 | 21,331,527 |
Cost of Revenues | 7,035,115 | 6,561,809 |
Gross Profit | 15,190,688 | 14,769,718 |
Research & Development | 2,237,920 | 2,982,676 |
Selling, General & Administrative | 7,948,704 | 7,949,525 |
Total Operating Expenses | 10,186,624 | 10,932,201 |
INCOME FROM OPERATIONS | 5,004,064 | 3,837,517 |
Other Income (Expense) | ||
Other Income | 137,975 | 1,435,382 |
Interest Expense | (9,704) | (19,655) |
Total Other Income | 128,271 | 1,415,727 |
INCOME BEFORE INCOME TAX EXPENSE | 5,132,335 | 5,253,244 |
Income Tax (Expense) Benefit | ||
Current Tax Benefit (Expense) | (1,005,140) | (16,592) |
Deferred Tax (Expense) Benefit | 174,026 | (288,887) |
Total Income Tax Expense | (831,114) | (305,479) |
NET INCOME | 4,301,221 | 4,947,765 |
Supplemental Disclosures | ||
Total Assets | 46,927,458 | 45,465,419 |
Total Liabilities | 3,544,649 | 4,416,346 |
Revenues from Intercompany Sales - eliminated from sales above | 5,522,732 | 5,900,995 |
Depreciation and Amortization | 738,729 | 924,073 |
Purchases of Long-lived Assets | 1,251,224 | 964,204 |
Marine Technology Business Products [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 14,724,688 | 15,804,222 |
Cost of Revenues | 2,941,569 | 3,169,835 |
Gross Profit | 11,783,119 | 12,634,387 |
Research & Development | 2,207,500 | 2,509,107 |
Selling, General & Administrative | 2,563,554 | 3,231,733 |
Total Operating Expenses | 4,771,054 | 5,740,840 |
INCOME FROM OPERATIONS | 7,012,065 | 6,893,547 |
Other Income (Expense) | ||
Other Income | 55,715 | 354,373 |
Interest Expense | (9,233) | (1,738) |
Total Other Income | 46,482 | 352,635 |
INCOME BEFORE INCOME TAX EXPENSE | 7,058,547 | 7,246,182 |
Income Tax (Expense) Benefit | ||
Current Tax Benefit (Expense) | (868,162) | 35,032 |
Deferred Tax (Expense) Benefit | 31,907 | (418,338) |
Total Income Tax Expense | (836,255) | (383,306) |
NET INCOME | 6,222,292 | 6,862,876 |
Supplemental Disclosures | ||
Total Assets | 33,348,805 | 30,631,442 |
Total Liabilities | 2,432,750 | 3,166,999 |
Revenues from Intercompany Sales - eliminated from sales above | 2,406,717 | 2,075,387 |
Depreciation and Amortization | 602,583 | 780,434 |
Purchases of Long-lived Assets | 1,123,475 | 793,995 |
Marine Engineering Business Services [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 7,501,115 | 5,527,305 |
Cost of Revenues | 4,093,546 | 3,391,974 |
Gross Profit | 3,407,569 | 2,135,331 |
Research & Development | 30,420 | 473,569 |
Selling, General & Administrative | 2,654,565 | 2,304,300 |
Total Operating Expenses | 2,684,985 | 2,777,869 |
INCOME FROM OPERATIONS | 722,584 | (642,538) |
Other Income (Expense) | ||
Other Income | 79,204 | 1,079,374 |
Interest Expense | (71) | (365) |
Total Other Income | 79,133 | 1,079,009 |
INCOME BEFORE INCOME TAX EXPENSE | 801,717 | 436,471 |
Income Tax (Expense) Benefit | ||
Current Tax Benefit (Expense) | 39,422 | (51,624) |
Deferred Tax (Expense) Benefit | (41,657) | 409,205 |
Total Income Tax Expense | (2,235) | 357,581 |
NET INCOME | 799,482 | 794,052 |
Supplemental Disclosures | ||
Total Assets | 12,662,109 | 14,117,747 |
Total Liabilities | 526,195 | 849,306 |
Revenues from Intercompany Sales - eliminated from sales above | 396,015 | 355,608 |
Depreciation and Amortization | 96,776 | 114,022 |
Purchases of Long-lived Assets | 36,862 | 51,907 |
Overhead [Member] | Segment Reporting [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | ||
Cost of Revenues | ||
Gross Profit | ||
Research & Development | ||
Selling, General & Administrative | 2,730,585 | 2,413,492 |
Total Operating Expenses | 2,730,585 | 2,413,492 |
INCOME FROM OPERATIONS | (2,730,585) | (2,413,492) |
Other Income (Expense) | ||
Other Income | 3,056 | 1,635 |
Interest Expense | (400) | (17,552) |
Total Other Income | 2,656 | (15,917) |
INCOME BEFORE INCOME TAX EXPENSE | (2,727,929) | (2,429,409) |
Income Tax (Expense) Benefit | ||
Current Tax Benefit (Expense) | (176,400) | |
Deferred Tax (Expense) Benefit | 183,776 | (279,754) |
Total Income Tax Expense | 7,376 | (279,754) |
NET INCOME | (2,720,553) | (2,709,163) |
Supplemental Disclosures | ||
Total Assets | 916,544 | 716,230 |
Total Liabilities | 585,704 | 400,041 |
Revenues from Intercompany Sales - eliminated from sales above | 2,720,000 | 3,470,000 |
Depreciation and Amortization | 39,370 | 29,617 |
Purchases of Long-lived Assets | $ 90,887 | $ 118,302 |
SCHEDULE OF DISAGGREGATE OF REV
SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 22,225,803 | $ 21,331,527 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 11,348,716 | 13,009,713 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 10,877,087 | 8,321,814 |
Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 10,315,052 | 12,335,738 |
Equipment Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,844,775 | 2,324,773 |
Software Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,014,867 | 669,968 |
Engineering Parts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,530,407 | 3,239,866 |
Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 5,520,702 | 2,761,182 |
Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 14,724,688 | 15,804,222 |
Marine Technology Business Products [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 9,785,917 | 11,588,099 |
Marine Technology Business Products [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 4,938,771 | 4,216,123 |
Marine Technology Business Products [Member] | Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 8,771,050 | 10,914,124 |
Marine Technology Business Products [Member] | Equipment Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,844,775 | 2,324,773 |
Marine Technology Business Products [Member] | Software Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,014,867 | 669,968 |
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 | 3,093,996 | 1,895,357 |
Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 7,501,115 | 5,527,305 |
Marine Engineering Business Services [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,562,799 | 1,421,614 |
Marine Engineering Business Services [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 5,938,316 | 4,105,691 |
Marine Engineering Business Services [Member] | Equipment Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,544,002 | 1,421,614 |
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 | 3,530,407 | 3,239,866 |
Marine Engineering Business Services [Member] | Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,426,706 | 865,825 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 10,235,297 | 5,623,364 |
Americas [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 5,668,948 | 3,434,552 |
Americas [Member] | Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 4,566,349 | 2,188,812 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 4,460,684 | 8,961,720 |
Europe [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,559,778 | 5,623,227 |
Europe [Member] | Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 2,900,906 | 3,338,493 |
Australia/Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 5,723,970 | 5,867,710 |
Australia/Asia [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 5,723,970 | 5,867,710 |
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 | 1,805,852 | 878,733 |
Middle East/Africa [Member] | Marine Technology Business Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,771,992 | 878,733 |
Middle East/Africa [Member] | Marine Engineering Business Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 33,860 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Oct. 31, 2022 | Oct. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Restricted stock units granted | |||
Employment Agreements [Member] | Annmarie Gayle [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Annual base salary | $ 230,000 | $ 305,000 | |
Annual performance bonus | 100,000 | ||
Annual salary, separation bonus | 150,000 | ||
Employment Agreements [Member] | Blair Cunningham [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Annual base salary | 200,000 | ||
Employment Agreements [Member] | Cunningham [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Annual base salary | 225,000 | ||
Employment Agreements [Member] | Kevin Kane [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Annual base salary | 200,000 | ||
Annual performance bonus | $ 12,000 | ||
Restricted stock units granted | 15,000 | ||
Employment Agreements [Member] | Michael Midgley [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Annual base salary | $ 210,000 | ||
Percentage of working hours reduced | 60% | ||
Reduction compensation amount | $ 126,000 | ||
Employment Agreements [Member] | Nathan Parker [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Annual base salary | 230,000 | ||
Annual performance bonus | $ 20,000 | ||
Restricted stock units granted | 9,506 |
PAYROLL PROTECTION PROGRAM (Det
PAYROLL PROTECTION PROGRAM (Details Narrative) - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Second Round Payroll Protection Program [Member] | ||
Short-Term Debt [Line Items] | ||
Loans received | $ 648,872 | $ 648,872 |