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Intangible Assets and Goodwill | 12 Months Ended
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Oct. 31, 2018
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, write-downs will be included in results from operations. The identifiable intangible assets acquired and their carrying value as of October 31, 2018 and 2017, are as follows: Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $47,190 and $163,519 for the years ended October 31, 2018 and 2017, respectively. Goodwill is not being amortized.
|  | October 31, 2018 |  |  | October 31, 2017 |
Customer relationships (weighted average life of 10 years) |  | $ | 896,624 |  |  | $ | 896,624 |
Non-compete agreements (weighted average life of 3 years) |  |  | 198,911 |  |  |  | 198,911 |
Patents and other (weighted average life of 10 years) |  |  | 366,036 |  |  |  | 294,175 |
Total identifiable intangible assets - gross carrying value |  |  | 1,461,571 |  |  |  | 1,389,710 |
Less: accumulated amortization |  |  | (1,229,727 | ) |  |  | (1,182,537 | )
Total intangible assets, net |  | $ | 231,844 |  |  | $ | 207,173 |
Future estimated annual amortization expenses as of October 31, 2018 as follows:
Years Ending October 31, |  | Amount |
2019 |  |  | 46,318 |
2020 |  |  | 39,121 |
2021 |  |  | 34,620 |
2022 |  |  | 34,297 |
2023 |  |  | 30,831 |
Thereafter |  |  | 46,657 |
Totals |  | $ | 231,844 |
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, 2018 and 2017, respectively. The carrying amount of goodwill as of October 31, 2018 and 2017, respectively, are recorded below:
|  | October 31, 2018 |  |  | October 31, 2017 |
Breakout of Goodwill: |  |  |  |  |  |  |  |
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 fair value of goodwill. We enlisted the assistance of an independent valuation consultant to determine the values of our intangible assets and goodwill at the dates of acquisition and by management for the dates thereafter. 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, 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 Segment – Coda Octopus Colmek and Coda Octopus Martech. The goodwill impairment evaluation was conducted at the end of the financial year 2018 and management’s opinion is that the carrying values are reasonable. Based on these evaluations, the fair value of goodwill exceeds its carrying value. As such no impairment was recorded by management.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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