Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

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GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Oct. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 3 – GOODWILL AND OTHER INTANGIBLE ASSETS

 

Goodwill and other intangibles consisted of the following as of:

 

 SCHEDULE OF CARRYING VALUE OF IDENTIFIABLE INTANGIBLE ASSETS

    October 31,     October 31,  
    2021     2020  
             
Customer relationships (weighted average life of 10 years)   $ 720,592     $ 720,592  
Non-compete agreements (weighted average life of 3 years)     198,911       198,911  
Patents and other (weighted average life of 10 years)     585,483       472,173  
                 
Total identifiable intangible assets - gross carrying value     1,504,986       1,391,676  
                 
Less: accumulated amortization     (1,092,711 )     (1,042,332 )
                 
Total intangible assets, net   $ 412,275     $ 349,344  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2021 and 2020

 

NOTE 3 – GOODWILL AND OTHER INTANGIBLE ASSETS (Continued)

 

Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $50,379 and $44,642 for the years ended October 31, 2021 and 2020.

 

Future estimated annual amortization expenses as of October 31, 2021 is as follows:

 

       
Years Ending October 31,   Amount  
2022     54,429  
2023     52,089  
2024     42,877  
2025     27,533  
2026     24,442  
Thereafter     210,905  
         
Totals   $ 412,275  

 

Goodwill consisted of the following as of:

 

    October 31,     October 31,  
    2021     2020  
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 31st, 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, 2021 and 2020