Contingencies and Commitments |
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| Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
| Contingencies and Commitments |
NOTE 12 - CONTINGENCIES AND COMMITMENTS
Litigation
During the reporting period to which this report applies the Company was involved in two lawsuits. The first action involved Federal Engineering and Marketing Associates Inc. (FEMA) a Colorado corporation (Plaintiff) who acted as sales representative of our wholly owned subsidiary, Coda Octopus Colmek Inc (“Colmek”) and the said Colmek as Defendant. The Plaintiff claimed breach of contract. This litigation was fully settled by the parties on or around January 14, 2011 and all actions filed in court were dismissed by consent.
On April 28, 2010 we instituted legal action in the Supreme Court of the State of New York against 4 former employees. These actions were settled in full between November 2010 and January 2011 and all actions filed in court were dismissed by consent.
See Note 15 of the Unaudited Condensed Consolidated Financial Statement for current information on the status of these litigation.
Company Voluntary Arrangement (CVA)
On or around October 18, 2010 our contracting entity, Coda Octopus Martech, entered into an arrangement under which it was agreed to re-schedule £503,335 an equivalent of $807,000 (using an exchange rate of 1.6035) amounts to trade creditors. Under the CVA this amount was scheduled to be repaid over 4 years.
See Note 15 of the Unaudited Condensed Consolidated Financial Statement for current information on the current status of the CVA.
Operating Leases
We occupy our various office and warehouse facilities pursuant to both term and month-to-month leases. Our term leases expire at various times through September 2015. Future minimum lease obligations are $1,252,831, with the minimum future rentals due under these leases as of January 31, 2011 as follows:
Concentrations
We had no concentrations of purchases of over 5% during the period ended January 31, 2011.
During the three months ended January 31, 2011, the company had one customer generate sales greater than 10% of total revenue. Sales to this customer were $662,758, or 18% of total revenues during the year. |