Segment Analysis |
NOTE 13 – SEGMENT ANALYSIS
We are operating in two reportable
segments, which are managed separately based upon fundamental differences in their operations. Coda Octopus Martech and Coda Octopus
Colmek operate as contractors, and the balance of our operations are comprised of product sales.
Segment operating income
is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate
administrative costs.
The Company evaluates performance
and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described
in the summary of accounting policies.
There are inter-segment sales
which have been eliminated in our financial statements but are disclosed in the tables below for information purposes.
The following table summarizes
segment asset and operating balances by reportable segment for the three months and six months ended April 30, 2017 and 2016 respectively.
The Company’s reportable
business segments operate in three geographic locations. Those geographic locations are:
* United
States
* Europe
* Australia
Information concerning principal
geographic areas is presented below according to the area where the activity has taken place for the three and six months ended
April 30, 2017 and 2016 respectively:
|
|
Marine
Technology
Business
(Products)
|
|
|
Marine
Engineering
Business
(Services)
|
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from External Customers |
|
$ |
3,299,545 |
|
|
$ |
1,979,213 |
|
|
$ |
- |
|
|
$ |
5,278,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
968,908 |
|
|
|
1,045,032 |
|
|
|
- |
|
|
|
2,013,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
2,330,638 |
|
|
|
934,181 |
|
|
|
- |
|
|
|
3,264,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
247,758 |
|
|
|
- |
|
|
|
- |
|
|
|
247,758 |
|
Selling, General & Administrative |
|
|
830,121 |
|
|
|
655,560 |
|
|
|
154,211 |
|
|
|
1,639,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
1,252,758 |
|
|
|
278,621 |
|
|
|
(154,211 |
) |
|
|
1,377,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
86,643 |
|
|
|
- |
|
|
|
- |
|
|
|
86,643 |
|
Interest Expense |
|
|
(181,806 |
) |
|
|
(75,002 |
) |
|
|
67,961 |
|
|
|
(188,847 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(95,163 |
) |
|
|
(75,002 |
) |
|
|
67,961 |
|
|
|
(102,204 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
1,157,595 |
|
|
|
203,619 |
|
|
|
(86,250 |
) |
|
|
1,274,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
1,157,595 |
|
|
$ |
203,620 |
|
|
$ |
(86,249 |
) |
|
$ |
1,274,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
12,119,417 |
|
|
$ |
12,616,569 |
|
|
$ |
422,059 |
|
|
$ |
25,158,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
1,223,741 |
|
|
|
1,654,104 |
|
|
|
8,600,374 |
|
|
|
11,478,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
|
505,660 |
|
|
|
170,056 |
|
|
|
118,875 |
|
|
|
794,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
145,800 |
|
|
|
71,056 |
|
|
|
3,106 |
|
|
|
219,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
|
643,603 |
|
|
|
26,852 |
|
|
|
- |
|
|
|
670,455 |
|
|
|
Marine
Technology
Business
(Products)
|
|
|
Marine
Engineering
Business
(Services)
|
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from External Customers |
|
$ |
2,397,476 |
|
|
$ |
3,348,499 |
|
|
$ |
- |
|
|
$ |
5,745,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
707,906 |
|
|
|
1,528,945 |
|
|
|
- |
|
|
|
2,236,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
1,689,570 |
|
|
|
1,819,554 |
|
|
|
- |
|
|
|
3,509,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
186,991 |
|
|
|
- |
|
|
|
- |
|
|
|
186,991 |
|
Selling, General & Administrative |
|
|
737,049 |
|
|
|
785,557 |
|
|
|
80,948 |
|
|
|
1,603,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
765,530 |
|
|
|
1,033,997 |
|
|
|
(80,948 |
) |
|
|
1,718,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
33,847 |
|
|
|
(77 |
) |
|
|
- |
|
|
|
33,770 |
|
Interest Expense |
|
|
(113,891 |
) |
|
|
(56,490 |
) |
|
|
565 |
|
|
|
(169,816 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(80,044 |
) |
|
|
(56,567 |
) |
|
|
565 |
|
|
|
(136,046 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before income taxes |
|
|
685,486 |
|
|
|
977,430 |
|
|
|
(80,383 |
) |
|
|
1,582,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
685,486 |
|
|
$ |
977,430 |
|
|
$ |
(80,383 |
) |
|
$ |
1,582,533 |
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
12,659,049 |
|
|
$ |
10,000,625 |
|
|
$ |
207,752 |
|
|
$ |
22,867,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
1,375,795 |
|
|
|
830,979 |
|
|
|
11,745,611 |
|
|
|
13,952,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
|
222,010 |
|
|
|
70,405 |
|
|
|
118,875 |
|
|
|
411,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
41,178 |
|
|
|
83,365 |
|
|
|
3,078 |
|
|
|
127,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
|
873,269 |
|
|
|
(10,175 |
) |
|
|
8,868 |
|
|
|
871,962 |
|
|
|
Marine
Technology
Business
(Products)
|
|
|
Marine
Engineering
Business
(Services)
|
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended April 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from External Customers |
|
$ |
5,750,144 |
|
|
$ |
4,886,817 |
|
|
$ |
- |
|
|
$ |
10,636,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
1,698,926 |
|
|
|
2,298,059 |
|
|
|
- |
|
|
|
3,996,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
4,051,218 |
|
|
|
2,588,758 |
|
|
|
- |
|
|
|
6,639,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
498,988 |
|
|
|
- |
|
|
|
- |
|
|
|
498,988 |
|
Selling, General & Administrative |
|
|
1,404,770 |
|
|
|
1,341,971 |
|
|
|
299,039 |
|
|
|
3,045,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
2,147,460 |
|
|
|
1,246,787 |
|
|
|
(299,039 |
) |
|
|
3,095,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
136,059 |
|
|
|
- |
|
|
|
- |
|
|
|
136,059 |
|
Interest (Expense) Income |
|
|
(532,141 |
) |
|
|
(199,223 |
) |
|
|
347,023 |
|
|
|
(384,341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(396,082 |
) |
|
|
(199,223 |
) |
|
|
347,023 |
|
|
|
(248,282 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before income taxes |
|
|
1,751,378 |
|
|
|
1,047,564 |
|
|
|
47,984 |
|
|
|
2,846,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
1,751,378 |
|
|
$ |
1,047,564 |
|
|
$ |
47,984 |
|
|
$ |
2,846,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
12,119,417 |
|
|
$ |
12,616,569 |
|
|
$ |
422,059 |
|
|
$ |
25,158,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
1,223,741 |
|
|
|
1,654,104 |
|
|
|
8,600,374 |
|
|
|
11,478,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
|
678,513 |
|
|
|
229,955 |
|
|
|
237,750 |
|
|
|
1,146,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
247,263 |
|
|
|
142,781 |
|
|
|
6,317 |
|
|
|
396,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
|
2,289,063 |
|
|
|
49,033 |
|
|
|
12,470 |
|
|
|
2,350,566 |
|
|
|
Marine
Technology
Business
(Products)
|
|
|
Marine
Engineering
Business
(Services)
|
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Six Months Ended April 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from External Customers |
|
$ |
5,389,099 |
|
|
$ |
5,132,715 |
|
|
$ |
- |
|
|
$ |
10,521,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
2,068,408 |
|
|
|
2,709,592 |
|
|
|
- |
|
|
|
4,778,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
3,320,691 |
|
|
|
2,423,123 |
|
|
|
- |
|
|
|
5,743,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
415,291 |
|
|
|
- |
|
|
|
- |
|
|
|
415,291 |
|
Selling, General & Administrative |
|
|
1,389,535 |
|
|
|
1,570,879 |
|
|
|
202,679 |
|
|
|
3,163,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
1,515,865 |
|
|
|
852,244 |
|
|
|
(202,679 |
) |
|
|
2,165,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
99,764 |
|
|
|
5,898 |
|
|
|
- |
|
|
|
105,662 |
|
Interest Expense |
|
|
(285,077 |
) |
|
|
(113,818 |
) |
|
|
(143 |
) |
|
|
(399,038 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(185,313 |
) |
|
|
(107,920 |
) |
|
|
(143 |
) |
|
|
(293,376 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before income taxes |
|
|
1,330,552 |
|
|
|
744,324 |
|
|
|
(202,822 |
) |
|
|
1,872,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
1,330,552 |
|
|
$ |
744,324 |
|
|
$ |
(202,822 |
) |
|
$ |
1,872,054 |
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
12,659,049 |
|
|
$ |
10,000,625 |
|
|
$ |
207,752 |
|
|
$ |
22,867,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
1,375,795 |
|
|
|
830,979 |
|
|
|
11,745,611 |
|
|
|
13,952,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
|
356,402 |
|
|
|
241,353 |
|
|
|
244,000 |
|
|
|
841,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
125,635 |
|
|
|
174,719 |
|
|
|
6,432 |
|
|
|
306,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
|
719,307 |
|
|
|
21,798 |
|
|
|
8,868 |
|
|
|
749,973 |
|
|
|
USA |
|
|
Europe |
|
|
Australia |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External Revenues by Geographic Locations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2017 |
|
$ |
2,525,908 |
|
|
$ |
2,614,897 |
|
|
$ |
137,953 |
|
|
$ |
5,278,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2016 |
|
$ |
3,291,480 |
|
|
$ |
2,176,818 |
|
|
$ |
277,677 |
|
|
$ |
5,745,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended April 30, 2017 |
|
$ |
5,275,675 |
|
|
$ |
4,631,934 |
|
|
$ |
729,352 |
|
|
$ |
10,636,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended April 30, 2016 |
|
$ |
4,955,901 |
|
|
$ |
4,763,447 |
|
|
$ |
802,466 |
|
|
$ |
10,521,814 |
|
|