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Goodwill and Intangible Assets | 12 Months Ended
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Oct. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | NOTE 3 – GOODWILL AND INTANGIBLE ASSETS 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 goodwill and intangible assets acquired and their carrying value as of October 31, 2020 and 2019, are as follows: Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $44,642 and $39,689 for the years ended October 31, 2020 and 2019, respectively. Goodwill is not being amortized.
|  | October 31, 2020 |  |  | October 31, 2019 |
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) |  |  | 472,173 |  |  |  | 381,785 |
Total identifiable intangible assets - gross carrying value |  |  | 1,391,676 |  |  |  | 1,301,288 |
Less: accumulated amortization |  |  | (1,042,332 | ) |  |  | (1,070,505 | )
Total intangible assets, net |  | $ | 349,344 |  |  | $ | 230,783 |
Future estimated annual amortization expenses as of October 31, 2020 as follows:
Years Ending October 31, |  | Amount |
2021 |  |  | 46,338 |
2022 |  |  | 46,317 |
2023 |  |  | 43,978 |
2024 |  |  | 33,000 |
2025 |  |  | 19,409 |
Thereafter |  |  | 160,302 |
Totals |  | $ | 349,344 |
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, 2020 and 2019, respectively. We enlisted the assistance of an independent valuation consultant to determine the values of our goodwill and intangible assets at the dates of acquisition and by management for the dates thereafter. The carrying amount of goodwill as of October 31, 2020 and 2019, respectively, are recorded below:
|  | October 31, 2020 |  |  | October 31, 2019 |
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 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, in the fourth quarter of each year, 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.

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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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