Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2019 | May 31, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | International Baler Corporation | |
Entity Central Index Key | 0000781902 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Smaller Reporting Company? | true | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,183,895 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Is Entity Shell Company? | false |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 4,038,598 | $ 4,733,510 |
Accounts receivable, net of allowance for doubtful accounts of $15,000 at April 30, 2019 and at October 31, 2018 | 824,883 | 556,666 |
Inventories | 4,212,587 | 4,257,085 |
Prepaid expense and other current assets | 73,595 | 166,604 |
Total current assets | 9,149,663 | 9,713,865 |
Property, plant and equipment, at cost | 4,307,505 | 4,092,153 |
Less: accumulated depreciation | 2,926,678 | 2,821,448 |
Net property, plant and equipment | 1,380,827 | 1,270,705 |
Other assets: | ||
Deferred income taxes | 61,494 | 61,494 |
Total other assets | 61,494 | 61,494 |
TOTAL ASSETS | 10,591,984 | 11,046,064 |
Current liabilities: | ||
Accounts payable | 560,880 | 581,651 |
Accrued liabilities | 265,164 | 386,416 |
Customer deposits | 599,445 | 894,579 |
Total current liabilities | 1,425,489 | 1,862,646 |
Total liabilities | 1,425,489 | 1,862,646 |
Stockholders' equity: | ||
Preferred stock, par value $.0001, 10,000,000 shares authorized, none issued | ||
Common stock, par value $.01, 25,000,000 shares authorized; 6,429,875 shares issued | 64,299 | 64,299 |
Additional paid-in capital | 6,419,687 | 6,419,687 |
Retained earnings | 3,363,919 | 3,380,842 |
Total stockholders' equity before treasury stock | 9,847,905 | 9,864,828 |
Less: Treasury stock, 1,245,980 shares, at cost | (681,410) | (681,410) |
Total stockholders' equity | 9,166,495 | 9,183,419 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,591,984 | $ 11,046,064 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
Current Assets: | ||
Accounts receivable, net of allowance for doubtful accounts | $ 15,000 | $ 15,000 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, share authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ .01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 6,429,875 | 6,429,875 |
Treasury stock, shares | 1,245,980 | 1,245,980 |
Condensed Statements of Income
Condensed Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Net sales: | ||||
Equipment | $ 3,858,690 | $ 4,434,151 | $ 2,199,466 | $ 1,176,241 |
Parts and service | 1,525,117 | 1,539,117 | 715,085 | 786,391 |
Total net sales | 5,383,807 | 5,973,268 | 2,914,551 | 1,962,632 |
Cost of sales | 4,718,585 | 5,200,227 | 2,535,028 | 1,758,354 |
Gross profit | 665,222 | 773,041 | 379,523 | 204,278 |
Operating expense: | ||||
Selling expense | 253,019 | 215,534 | 142,208 | 115,866 |
Administrative expense | 436,946 | 322,335 | 236,349 | 157,956 |
Total operating expense | 689,965 | 537,869 | 378,557 | 273,822 |
Operating income (loss) | (24,743) | 235,172 | 966 | (69,544) |
Other income (expense): | ||||
Interest income | 1,820 | 4,045 | 899 | 1,072 |
Interest expense | ||||
Total other income | 1,820 | 4,045 | 899 | 1,072 |
Income (loss) before income taxes | (22,923) | 239,217 | 1,865 | (68,472) |
Income tax provision (benefit) | (6,000) | 93,000 | (16,000) | |
Net income (loss) | $ (16,923) | $ 146,217 | $ 1,865 | $ (52,472) |
Income (loss) per share, basic and diluted | $ 0 | $ 0.03 | $ 0 | $ (0.01) |
Weighted average number of shares outstanding | 5,183,895 | 5,183,895 | 5,183,895 | 5,183,895 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Cost | Total |
Beginning Balace, Shares at Oct. 31, 2017 | 1,245,985 | |||||
Beginning Balance, Value at Oct. 31, 2017 | $ 64,299 | $ 6,419,687 | $ 3,070,613 | $ (681,410) | $ 8,873,189 | |
Net Income | 146,217 | (52,472) | ||||
End Balance, Shares at Apr. 30, 2018 | 1,245,980 | |||||
End Balance, Value at Apr. 30, 2018 | 64,299 | 6,419,687 | 3,216,830 | (681,410) | 9,019,406 | |
Beginning Balace, Shares at Oct. 31, 2018 | 1,245,980 | |||||
Beginning Balance, Value at Oct. 31, 2018 | 64,299 | 6,419,687 | 3,380,842 | (681,410) | 9,183,419 | |
Net Income | (16,923) | 1,865 | ||||
End Balance, Shares at Apr. 30, 2019 | 1,245,980 | |||||
End Balance, Value at Apr. 30, 2019 | $ 64,299 | $ 6,419,687 | $ 3,363,919 | $ (681,410) | $ 9,166,495 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flow from operating activities: | ||
Net (loss) income | $ 1,865 | $ (52,472) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 105,230 | 97,000 |
Deferred income taxes | 10,373 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (268,217) | 311,074 |
Inventories | 44,498 | 751,525 |
Prepaid expenses and other assets | 93,009 | (173,124) |
Income taxes receivable | 126,886 | |
Accounts payable | (20,771) | (229,494) |
Accrued liabilities | (121,252) | (105,030) |
Customer deposits | (295,134) | (999,467) |
Net cash used in operating activities | (479,560) | (64,040) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (215,352) | (83,444) |
Net cash used in investing activities | (215,352) | (83,444) |
Net decrease in cash and cash equivalents | (694,912) | (147,484) |
Cash and cash equivalents at beginning of period | 4,733,510 | 4,541,767 |
Cash and cash equivalents at end of period | 4,038,598 | 4,394,283 |
Cash paid during period for: | ||
Interest | ||
Income taxes | $ 125,000 |
Nature of Business
Nature of Business | 6 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business: | 1. Nature of Business: International Baler Corporation (the “Company”) is a manufacturer of baling equipment which is designed to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models, and conveyors to meet specific customer requirements. The Company’s customers include recycling facilities, distribution centers, textile mills, and companies which generate the materials for baling and recycling. The Company sells its products worldwide with annual sales outside the United States typically ranging from 10% to 35%. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of Presentation: The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information in footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the six-month period ended April 30, 2019 are not necessarily indicative of the results that may be expected for the year ending October 31, 2019. The accompanying balance sheet as of October 31, 2018 was derived from the audited financial statements as of October 31, 2018. These unaudited condensed financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended October 31, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies: (a) Accounts Receivable & Allowance for Doubtful Accounts: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly including the analysis of historical trends, customer credit worthiness and the aging of receivables. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. (b) Inventories: Inventories are stated at the lower of cost and net realizable value. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. The Company reviews inventory for obsolescence on a regular basis. (c) Warranties and Service: The Company typically warrants its products for one (1) year from the date of sale as to materials, three (3) years for structural damage and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida or by local service agents who are engaged as needed. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and types of balers currently under warranty, and known warranty issues. Following is a tabular reconciliation of the changes in the warranty accrual for the six-month period ended April 30: 2019 2018 Beginning balance $ 80,000 $ 70,000 Warranty service provided (59,243 ) (60,491 ) New product warranties 38,587 44,342 Changes to pre-existing warranty accruals 10, 656 (16,149 ) Ending balance $ 70,000 $ 70,000 (d) Fair Value of Financial Instruments: The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short term certificates of deposit, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities. (e) Recent Accounting Pronouncements: Recently Adopted Accounting Pronouncements: In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740), Amendment to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) In May 2014, the FASB issued ASU 2014-09 establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases, |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 4. Revenue from Contracts with Customers: a) Overview The Company adopted ASC 606 on November 1. 2018. The Company recognizes revenues from the sale of finished products upon shipment and the transfer of control to the customer. The other elements may include installation and, generally, a one-year warranty. Equipment installation revenue is valued based on estimated service person hours to complete installation and is recognized when the labor has been completed and the equipment has been accepted by the customer, which is generally within a couple days of the delivery of the equipment. Warranty revenue, if sold separately, is valued based on estimated service person hours to complete a service and generally is recognized over the contract period. All other product sales with customer specific acceptance provisions are recognized at a point in time upon customer acceptance and the delivery of the parts or service. Revenues related to spare part sales are recognized upon shipment or delivery based on the trade terms. Generally, pricing is fixed and the majority of the Company’s contracts have short duration and a single performance obligation to deliver a configured to order baler and related equipment to the customer. The Company has elected to expense shipping and handling costs as incurred. b) Disaggregation of Revenue Disaggregated revenue is by primary geographic market is as follows: Equipment Revenue by Geographic Area Six Months Ended 2019 United States $ 3,542,040 International 316,650 Total $ 3,858,690 c) Contract Balances Contract balances include accounts receivable and contract liabilities. Contract liabilities are reported as Customer Deposits on the accompanying Balance Sheets and consist of advances or deposits from customers before revenue is recognized. The change in contract liabilities is due to the timing of customer deposits for baler orders offset by customer deposits recognized as revenue during the period. The Company does not record contract assets because the construction of a configured to order baler does not create an asset with an alternative use to the Company. The Company expenses incremental costs of obtaining or fulfilling a contract. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Apr. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 5. Related Party Transactions: The Estate of Leland E. Boren is a stockholder of the Company and is the owner of Avis Industrial Corporation (Avis). The Estate controls over 80% of the outstanding shares of the Company. Avis owns 100% of The American Baler Company, a competitor of the Company. On January 1, 2014, Avis acquired The Harris Waste Management Group, Inc. (Harris), also a competitor of the Company. On July 31, 2014 Harris acquired the assets of IPS Balers, Inc. in Baxley, Georgia, another competitor of the Company. These baler companies operate completely independent of each other. The company had no purchases from these companies in the six months of fiscal 2019 and in the fiscal year ending October 31, 2018. The Company had no sales to The American Baler Company in the six months of fiscal 2019 and in the fiscal year ended October 31, 2018. The Company sold five closed door horizontal balers and one conveyor to Harris Waste Management for $295,032 in fiscal 2018 and had no sales to Harris Waste Management in the six months of fiscal 2019. |
Inventories
Inventories | 6 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories: Inventories consisted of the following: April 30, 2019 October 31, 2018 Raw materials $ 2,096,209 $ 1,901,707 Work in process 1,833,663 2,166,663 Finished goods 282,715 188,715 $ 4,212,587 $ 4,257,085 |
Debt
Debt | 6 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt: The Company has a $1,650,000 line of credit agreement with First Merchants Bank of Muncie, Indiana which was renewed on May 15, 2019. The line of credit allows the Company to borrow at an interest rate equal to the Wall Street Journal prime rate minus 0.95%, adjusting daily. The line of credit is secured by all assets of the Company and expires on May 15, 2020. The line of credit had no outstanding balance at April 30, 2019 and at October 31, 2018. |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes: Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. Factors considered included, historical results of operations, volatility of the economic conditions and projected earnings based on current operations. Based on this evidence, it is more likely than not that the deferred tax assets would be realized. Accordingly, there is no valuation allowance as of April 30, 2019 and at October 31, 2018. However, if it is determined that all or part of the deferred tax assets will not be used in the future, an adjustment to the deferred tax assets would be charged against net income in the period such determination is made. As of April 30, 2019 and October 31, 2018, net deferred tax assets were $61,494. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses. The Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into United States tax law on December 22, 2017. The Act makes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, and changes in business-related exclusions, and deductions and credits. As a result of the income tax rate reduction, the Company recorded a reduction of net deferred income tax assets of approximately $10,000 during the first quarter of the fiscal year ending October 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies: The Company, in the ordinary course of business, is subject to claims made, and from time to time is named as a defendant in legal proceedings relating to the sales of its products. The Company believes that the reserves reflected in its financial statements are adequate to pay losses and loss adjustment expenses which may result from such claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. On December 1, 2017 the Company was served with a complaint related to an injury to an employee working at Integrated Coating and Seed Technology Inc.,(INCOTEC). The employee was operating a baler manufactured by the Company in 1994. The injury occurred on December 4, 2015. The plaintiff is Star Insurance Company. The Company’s insurer has retained an attorney and has begun the discovery process. The Company believes its exposure is $25,000, the amount of the Company’s deductible on its insurance policy. Accordingly, the Company accrued $25,000 during the six months ended April 30, 2018. In December 2018 the Company discovered an employee theft of Company property. At the date of this report the Company has researched what items were stolen and our estimate is that the value of the stolen items was approximately $200,000. Since the Company conducts a physical inventory at the end of each fiscal year, any losses incurred for the fiscal year ended October 31, 2018 would have been reflected in the operating results of the Company for that fiscal year. The Company carries Crime Insurance which has an upper limit of $1,000,000 and a deductible of $25,000. In May 2019 the Company’s insurer approved the claim and agreed to reimburse the Company $175,841. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | (a) Accounts Receivable & Allowance for Doubtful Accounts: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly including the analysis of historical trends, customer credit worthiness and the aging of receivables. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | (b) Inventories: Inventories are stated at the lower of cost and net realizable value. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. The Company reviews inventory for obsolescence on a regular basis. |
Warranties and Service | (c) Warranties and Service: The Company typically warrants its products for one (1) year from the date of sale as to materials, three (3) years for structural damage and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida or by local service agents who are engaged as needed. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and types of balers currently under warranty, and known warranty issues. Following is a tabular reconciliation of the changes in the warranty accrual for the six-month period ended April 30: 2019 2018 Beginning balance $ 80,000 $ 70,000 Warranty service provided (59,243 ) (60,491 ) New product warranties 38,587 44,342 Changes to pre-existing warranty accruals 10, 656 (16,149 ) Ending balance $ 70,000 $ 70,000 |
Fair Value of Financial Instruments | (d) Fair Value of Financial Instruments: The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short term certificates of deposit, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities. |
Recent Accounting Pronouncements | (e) Recent Accounting Pronouncements: Recently Adopted Accounting Pronouncements: In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740), Amendment to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) In May 2014, the FASB issued ASU 2014-09 establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Warranty Accrual | 2019 2018 Beginning balance $ 80,000 $ 70,000 Warranty service provided (59,243 ) (60,491 ) New product warranties 38,587 44,342 Changes to pre-existing warranty accruals 10, 656 (16,149 ) Ending balance $ 70,000 $ 70,000 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue | Equipment Revenue by Geographic Area Six Months Ended 2019 United States $ 3,542,040 International 316,650 Total $ 3,858,690 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | January 31, 2019 October 31, 2018 Raw materials $ 2,036,188 $ 1,901,707 Work in process 2,092,663 2,166,663 Finished goods 180,715 188,715 $ 4,309,566 $ 4,257,085 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Warranty Accrual (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract] | ||
Beginning balance | $ 80,000 | $ 70,000 |
Warranty service provided | (59,243) | (60,491) |
New product warranties | 38,587 | 44,342 |
Changes to pre-existing warranty accruals | 10,656 | (16,149) |
Ending balance | $ 70,000 | $ 70,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregated revenue (Details) | 6 Months Ended |
Apr. 30, 2019USD ($) | |
Equipment Revenue by Geographic Area | |
Total | $ 3,858,690 |
United States | |
Equipment Revenue by Geographic Area | |
Total | 3,542,040 |
International | |
Equipment Revenue by Geographic Area | |
Total | $ 316,650 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Oct. 31, 2018 | Oct. 31, 2016 | |
Sales | $ 3,858,690 | ||
Leland E. Boren | |||
Ownership of Avis | 80.00% | ||
Avis Industrial Corp. | |||
Ownership of The American Baler | 100.00% | ||
Harris Waste Management | |||
Sales | $ 295,032 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) | Apr. 30, 2019 | Oct. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,096,209 | $ 1,901,707 |
Work in process | 1,833,663 | 2,166,663 |
Finished goods | 282,715 | 188,715 |
Inventories | $ 4,212,587 | $ 4,257,085 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | 6 Months Ended | |
Apr. 30, 2019 | Oct. 31, 2018 | |
Short-term Debt [Line Items] | ||
Line of Credit Agreement | $ 1,650,000 | |
Interest Rate Terms | <font style="font-size: 10pt">The line of credit allows the Company to borrow at an interest rate equal to the Wall Street Journal prime rate minus 0.95%, adjusting daily. The line of credit is secured by all assets of the Company and expires on May 15, 2019.</font></p>" id="sjs-B5"><p style="margin: 0; text-align: justify"><font style="font-size: 10pt">The line of credit allows the Company to borrow at an interest rate equal to the Wall Street Journal prime rate minus 0.95%, adjusting daily. The line of credit is secured by all assets of the Company and expires on May 15, 2019.</font></p> | |
Outstanding balance | $ 0 | |
Line of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding balance | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2018 | Apr. 30, 2019 | Oct. 31, 2018 | |
Components of Deferred Tax Assets [Abstract] | |||
Federal Statutory Rate | 21.00% | ||
Net deferred tax assets | $ 61,494 | $ 61,494 | |
Reduction of net deferred income tax assets | $ 10,000 |
Commitment and Contingencies (D
Commitment and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2018 | Apr. 30, 2018 | May 31, 2019 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |||
Lawsuit exposure | $ 25,000 | ||
Theft | $ 200,000 | ||
Reimbursement from insurance claim | $ 175,841 |