Intangible Assets and Goodwill
|12 Months Ended|
Oct. 31, 2019
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Intangible Assets and Goodwill||
NOTE 3 - INTANGIBLE ASSETS AND GOODWILL
Goodwill and Other Intangible Assets are evaluated on an annual basis. If there is reason to believe that their values have been diminished or impaired, those write-downs will be included in results from operations.
The identifiable intangible assets acquired and their carrying value as of October 31, 2019 and 2018, are as follows:
Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $39,689 and $47,190 for the years ended October 31, 2019 and 2018, respectively. Goodwill is not being amortized.
Future estimated annual amortization expenses as of October 31, 2019 as follows:
As a result of the acquisitions of Coda Octopus Martech, Ltd., Coda Octopus Colmek, Inc. and Coda Octopus Products, Ltd. the Company has goodwill in the amount of $3,382,108 as of October 31, 2019 and 2018, respectively. The carrying amount of goodwill as of October 31, 2019 and 2018, respectively, are recorded below:
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.
Company’s policy is to test its goodwill balances for impairment on an annual basis, in the fourth quarter of each year, or more frequently if events or changes in circumstances indicate that the asset might be impaired.
The goodwill assets of the Company arise chiefly from the acquisition of two wholly owned subsidiaries that comprise the Company’s Services Segments – Coda Octopus Colmek and Coda Octopus Martech. The goodwill impairment evaluation was conducted at the end of the financial year 2019 and management’s opinion is that the carrying values are recoverable.
Based on these evaluations, the fair value of goodwill exceeds its carrying value. As such no impairment was recorded by management.
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef