GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS

Other intangibles consisted of the following as of:

	October 31,			October 31,
	2022			2021
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)		675,572			585,483
Total identifiable intangible assets - gross carrying value		1,595,075			1,504,986
Less: accumulated amortization		(1,152,789	)		(1,092,711	)
Total intangible assets, net	$	442,286		$	412,275

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2022 and 2021

NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS (Continued)

Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $60,077 and $50,379 for the years ended October 31, 2022 and 2021.

Future estimated annual amortization expenses as of October 31, 2022 is as follows:

Years Ending October 31,	Amount
2023		52,089
2024		42,877
2025		27,533
2026		24,442
Thereafter		295,345
Totals	$	442,286

Goodwill consisted of the following as of:

	October 31,		October 31,
	2022		2021
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 31, 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, 2022 and 2021