Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.22.2.2
SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 2022
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 14 -SEGMENT ANALYSIS

 

Based on the fundamental difference in the types of offering, products and solutions versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Segment”) operations are comprised primarily of sale of underwater technology sonar solutions, products for underwater operations including hardware and software, diver management system and rental of solutions and products to the underwater market. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provides engineering services primarily as sub-contractors to prime defense contractors.

 

Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs (“Overhead”).

 

The Company evaluates performance and allocates resources based upon segment 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 tables summarize segment asset and operating balances by reportable segment as of and for the three and nine months ended July 31, 2022 and 2021, respectively.

 

The Company’s reportable business segments sell their goods and services in four geographic locations:

 

  ● Americas
  ● Europe
  ● Australia/Asia
  ● Middle East/Africa

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2022                                
                                 
Net Revenues   $ 4,004,557     $ 2,262,852     $ -     $ 6,267,409  
                                 
Cost of Revenues     532,248       1,172,517       -       1,704,765  
                                 
Gross Profit     3,472,309       1,090,335       -       4,562,644  
                                 
Research & Development     605,857       (27,904 )     -       577,953  
Selling, General & Administrative     731,200       700,820       528,958       1,960,978  
                                 
Total Operating Expenses     1,337,057       672,916       528,958       2,538,931  
                                 
Income (Loss) from Operations     2,135,252       417,419       (528,958 )     2,023,713  
                                 
Other Income (Expense)                                
Other Income     14,472       4,212       1,060       19,744  
Interest Expense     -       -       -       -  
                                 
Total Other Income (Expense)     14,472       4,212       1,060       19,744  
                                 
Income (Loss) before Income Taxes     2,149,724       421,631       (527,898 )     2,043,457  
                                 
Income Tax (Expense) Benefit                                
Current Tax Expense     (226,264 )     (23,148 )     (77,320 )     (326,732 )
Deferred Tax Benefit     378       2,141       49,413       51,932  
                                 
Total Income Tax (Expense) Benefit     (225,886 )     (21,007 )     (27,907 )     (274,800 )
                                 
Net Income (Loss)   $ 1,923,838     $ 400,624     $ (555,805 )   $ 1,768,657  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 33,015,110     $ 13,354,167     $ 834,699     $ 47,203,976  
                                 
Total Liabilities   $ 3,246,151     $ 774,497     $ 391,958     $ 4,412,606  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 966,316     $ 62,757     $ 607,500     $ 1,636,573  
                                 
Depreciation and Amortization   $ 174,739     $ 24,209     $ 9,873     $ 208,821  
                                 
Purchases of Long-lived Assets   $ 14,815     $ 22,125     $ 17,469     $ 54,409  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2021                                
                                 
Net Revenues   $ 3,845,051     $ 1,982,324     $ -     $ 5,827,375  
                                 
Cost of Revenues     545,243       1,069,723       -       1,614,966  
                                 
Gross Profit     3,299,808       912,601       -       4,212,409  
                                 
Research & Development     540,553       135,213       -       675,766  
Selling, General & Administrative     862,673       621,876       729,272       2,213,821  
                                 
Total Operating Expenses     1,403,226       757,089       729,272       2,889,587  
                                 
Income (Loss) from Operations     1,896,582       155,512       (729,272 )     1,322,822  
                                 
Other Income (Expense)                                
Other Income     3,554       17       -       3,571  
Interest Expense     (584 )     (365 )     (5,196 )     (6,145 )
                                 
Total Other Income (Expense)     2,970       (348 )     (5,196 )     (2,574 )
                                 
Income (Loss) before Income Taxes     1,899,552       155,164       (734,468 )     1,320,248  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit (Expense)     157,333       260,996       -       418,329  
Deferred Tax (Expense) Benefit     (338,098 )     108,141       12,466       (217,491 )
                                 
Total Income Tax (Expense) Benefit     (180,765 )     369,137       12,466       200,838  
                                 
Net Income (Loss)   $ 1,718,787     $ 524,301     $ (722,002 )   $ 1,521,086  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 28,820,472     $ 14,608,555     $ 934,192     $ 44,363,219  
                                 
Total Liabilities   $ 2,159,921     $ 844,816     $ 379,474     $ 3,384,211  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 492,579     $ 44,372     $ 675,000     $ 1,211,951  
                                 
Depreciation and Amortization   $ 195,103     $ 24,590     $ 7,952     $ 227,645  
                                 
Purchases of Long-lived Assets   $ 201,198     $ 7,655     $ 30,584     $ 239,437  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Nine Months Ended July 31, 2022                                
                                 
Net Revenues   $ 11,319,314     $ 5,771,141     $ -     $ 17,090,455  
                                 
Cost of Revenues     1,920,573       3,415,598       -       5,336,171  
                                 
Gross Profit     9,398,741       2,355,543       -       11,754,284  
                                 
Research & Development     1,752,478       15,743       -       1,768,221  
Selling, General & Administrative     2,059,147       2,040,608       2,016,330       6,116,085  
                                 
Total Operating Expenses     3,811,625       2,056,351       2,016,330       7,884,306  
                                 
Income (Loss) from Operations     5,587,116       299,192       (2,016,330 )     3,869,978  
                                 
Other Income (Expense)                                
Other Income     32,576       79,256       2,404       114,236  
Interest Expense     (2,502 )     -       (400 )     (2,902 )
                                 
Total Other Income (Expense)     30,074       79,256       2,004       111,334  
                                 
Income (Loss) before Income Taxes     5,617,190       378,448       (2,014,326 )     3,981,312  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit (Expense)     (492,505 )     147,778       (158,464 )     (503,191 )
Deferred Tax (Expense) Benefit     5,159       (42,839 )     156,767       119,087  
                                 
Total Income Tax (Expense) Benefit     (487,346 )     104,939       (1,697 )     (384,104 )
                                 
Net Income (Loss)   $ 5,129,844     $ 483,387     $ (2,016,023 )   $ 3,597,208  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 33,015,110     $ 13,354,167     $ 834,699     $ 47,203,976  
                                 
Total Liabilities   $ 3,246,151     $ 774,497     $ 391,958     $ 4,412,606  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 1,769,365     $ 305,450     $ 1,815,000     $ 3,889,815  
                                 
Depreciation and Amortization   $ 551,866     $ 72,056     $ 28,840     $ 652,762  
                                 
Purchases of Long-lived Assets   $ 1,085,877     $ 34,174     $ 75,834     $ 1,195,885  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Nine Months Ended July 31, 2021                                
                                 
Net Revenues   $ 11,777,739     $ 4,473,171     $ -     $ 16,250,910  
                                 
Cost of Revenues     2,462,219       2,511,756       -       4,973,975  
                                 
Gross Profit     9,315,520       1,961,415       -       11,276,935  
                                 
Research & Development     1,521,175       383,011       -       1,904,186  
Selling, General & Administrative     2,402,406       1,751,197       1,670,443       5,824,046  
                                 
Total Operating Expenses     3,923,581       2,134,208       1,670,443       7,728,232  
                                 
Income (Loss) from Operations     5,391,939       (172,793 )     (1,670,443 )     3,548,703  
                                 
Other Income (Expense)                                
Other Income     74,173       51       846       75,070  
Funding from Paycheck Protection Program     122,327       526,545       -       648,872  
Interest Expense     (1,069 )     (365 )     (16,008 )     (17,442 )
                                 
Total Other Income (Expense)     195,431       526,231       (15,162 )     706,500  
                                 
Income (Loss) before Income Taxes     5,587,370       353,438       (1,685,605 )     4,255,203  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     254,745       498,666       (394 )     753,017  
Deferred Tax Benefit (Expense)     (356,164 )     264,636       (58,829 )     (150,357 )
                                 
Total Income Tax (Expense) Benefit     (101,419 )     763,302       (59,223 )     602,660  
                                 
Net Income (Loss)   $ 5,485,951     $ 1,116,740     $ (1,744,828 )   $ 4,857,863  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 28,820,472     $ 14,608,555     $ 934,192     $ 44,363,219  
                                 
Total Liabilities   $ 2,159,921     $ 844,816     $ 379,474     $ 3,384,211  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 1,367,619     $ 184,016     $ 2,025,000     $ 3,576,635  
                                 
Depreciation and Amortization   $ 707,761     $ 98,671     $ 21,077     $ 827,509  
                                 
Purchases of Long-lived Assets   $ 745,405     $ 13,203     $ 80,018     $ 838,626  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2022, and October 31, 2021