Annual report pursuant to Section 13 and 15(d)

SEGMENT ANALYSIS

v3.22.4
SEGMENT ANALYSIS
12 Months Ended
Oct. 31, 2022
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 13 -SEGMENT ANALYSIS

 

Based on the fundamental difference in the types of offering products 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, 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.

 

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 as of and for the years ended October 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

October 31, 2022 and 2021

 

NOTE 13 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2022                                
                                 
Net Revenues   $ 14,724,688     $ 7,501,115     $ -     $ 22,225,803  
                                 
Cost of Revenues     2,941,569       4,093,546       -       7,035,115  
                                 
Gross Profit     11,783,119       3,407,569       -       15,190,688  
                                 
Research & Development     2,207,500       30,420       -       2,237,920  
Selling, General & Administrative     2,563,554       2,654,565       2,730,585       7,948,704  
                                 
Total Operating Expenses     4,771,054       2,684,985       2,730,585       10,186,624  
                                 
Income (Loss) from Operations     7,012,065       722,584       (2,730,585 )     5,004,064  
                                 
Other Income (Expense)                                
Other Income     55,715       79,204       3,056       137,975  
Interest Expense     (9,233 )     (71 )     (400 )     (9,704 )
                                 
Total Other Income     46,482       79,133       2,656     128,271  
                                 
Income (Loss) before Income Taxes     7,058,547       801,717       (2,727,929 )     5,132,335  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (868,162 )     39,422      

(176,400

)    

(1,005,140

)
Deferred Tax Benefit (Expense)     31,907       (41,657 )     183,776       174,026  
                                 
Total Income Tax (Expense) Benefit    

(836,255

)     (2,235 )     

7,376

     

(831,114

)
                                 
Net Income (Loss)   $ 6,222,292     $ 799,482     $

(2,720,553

)   $ 4,301,221  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 33,348,805     $ 12,662,109     $ 916,544     $ 46,927,458  
                                 
Total Liabilities   $ 2,432,750     $ 526,195     $ 585,704     $ 3,544,649  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 2,406,717     $ 396,015     $ 2,720,000     $ 5,522,732  
                                 
Depreciation and Amortization   $ 602,583     $ 96,776     $ 39,370     $ 738,729  
                                 
Purchases of Long-lived Assets   $ 1,123,475     $ 36,862     $ 90,887     $ 1,251,224  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2022 and 2021

 

NOTE 13 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2021                                
                                 
Net Revenues   $ 15,804,222     $ 5,527,305     $ -     $ 21,331,527  
                                 
Cost of Revenues     3,169,835       3,391,974       -       6,561,809  
                                 
Gross Profit     12,634,387       2,135,331       -       14,769,718  
                                 
Research & Development     2,509,107       473,569       -       2,982,676  
Selling, General & Administrative     3,231,733       2,304,300       2,413,492       7,949,525  
                                 
Total Operating Expenses     5,740,840       2,777,869       2,413,492       10,932,201  
                                 
Income (Loss) from Operations     6,893,547       (642,538 )     (2,413,492 )     3,837,517  
                                 
Other Income (Expense)                                
Other Income     354,373       1,079,374       1,635       1,435,382  
Interest Expense     (1,738 )     (365 )     (17,552 )     (19,655 )
                                 
Total Other Income (Expense)     352,635       1,079,009       (15,917 )     1,415,727  
                                 
Income (Loss) before Income Taxes     7,246,182       436,471       (2,429,409 )     5,253,244  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit (Expense)     35,032       (51,624 )     -       (16,592 )
Deferred Tax (Expense) Benefit     (418,338 )     409,205       (279,754 )     (288,887 )
                                 
Total Income Tax (Expense) Benefit     (383,306 )     357,581       (279,754 )     (305,479 )
                                 
Net Income (Loss)   $ 6,862,876     $ 794,052     $ (2,709,163 )   $ 4,947,765  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 30,631,442     $ 14,117,747     $ 716,230     $ 45,465,419  
                                 
Total Liabilities   $ 3,166,999     $ 849,306     $ 400,041     $ 4,416,346  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 2,075,387     $ 355,608     $ 3,470,000     $ 5,900,995  
                                 
Depreciation and Amortization   $ 780,434     $ 114,022     $ 29,617     $ 924,073  
                                 
Purchases of Long-lived Assets   $ 793,995     $ 51,907     $ 118,302     $ 964,204  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2022 and 2021