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
Business” or “Products Segment”) operations are comprised primarily of sale and/or rental of underwater technology
sonar solutions, products for underwater operations including hardware and software and support services and our diver management
system. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”)
provide 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 for the three months ended January 31, 2023 and
2022, 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
January
31, 2023 and October 31, 2022
NOTE
14 -SEGMENT ANALYSIS (Continued)
SCHEDULE
OF SEGMENT REPORTING INFORMATION
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
$ |
3,824,159 |
|
|
$ |
1,772,125 |
|
|
$ |
- |
|
|
$ |
5,596,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
1,064,244 |
|
|
|
779,035 |
|
|
|
- |
|
|
|
1,843,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
2,759,915 |
|
|
|
993,090 |
|
|
|
- |
|
|
|
3,753,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
438,308 |
|
|
|
6,150 |
|
|
|
- |
|
|
|
444,458 |
|
Selling, General & Administrative |
|
|
661,759 |
|
|
|
646,310 |
|
|
|
654,382 |
|
|
|
1,962,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
1,100,067 |
|
|
|
652,460 |
|
|
|
654,382 |
|
|
|
2,406,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
1,659,848 |
|
|
|
340,630 |
|
|
|
(654,382 |
) |
|
|
1,346,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
15,020 |
|
|
|
745 |
|
|
|
- |
|
|
|
15,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income |
|
|
15,020 |
|
|
|
745 |
|
|
|
- |
|
|
|
15,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax (Expense) Benefit |
|
|
(18,873 |
) |
|
|
(19,856 |
) |
|
|
38,718 |
|
|
|
(11 |
) |
Deferred Tax (Expense) Benefit |
|
|
- |
|
|
|
- |
|
|
|
36,007 |
|
|
|
36,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Income Tax (Expense) Benefit |
|
|
(18,873 |
) |
|
|
(19,856 |
) |
|
|
74,725 |
|
|
|
35,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
1,655,995 |
|
|
$ |
321,519 |
|
|
$ |
(579,657 |
) |
|
$ |
1,397,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
36,176,835 |
|
|
$ |
13,377,560 |
|
|
$ |
949,710 |
|
|
$ |
50,504,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
$ |
2,694,766 |
|
|
$ |
758,160 |
|
|
$ |
480,710 |
|
|
$ |
3,933,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
$ |
829,674 |
|
|
$ |
45,707 |
|
|
$ |
680,000 |
|
|
$ |
1,555,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
$ |
128,838 |
|
|
$ |
24,910 |
|
|
$ |
10,259 |
|
|
$ |
164,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
$ |
79,642 |
|
|
$ |
4,780 |
|
|
$ |
21,485 |
|
|
$ |
105,907 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
January
31, 2023 and October 31, 2022
NOTE
14 - SEGMENT ANALYSIS (Continued)
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
$ |
3,823,748 |
|
|
$ |
2,014,460 |
|
|
$ |
- |
|
|
$ |
5,838,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
572,292 |
|
|
|
1,105,982 |
|
|
|
- |
|
|
|
1,678,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
3,251,456 |
|
|
|
908,478 |
|
|
|
- |
|
|
|
4,159,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
529,375 |
|
|
|
143,515 |
|
|
|
- |
|
|
|
672,890 |
|
Selling, General & Administrative |
|
|
753,614 |
|
|
|
651,149 |
|
|
|
706,349 |
|
|
|
2,111,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
1,282,989 |
|
|
|
794,664 |
|
|
|
706,349 |
|
|
|
2,784,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
1,968,467 |
|
|
|
113,814 |
|
|
|
(706,349 |
) |
|
|
1,375,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
9,049 |
|
|
|
70,945 |
|
|
|
- |
|
|
|
79,994 |
|
Interest Expense |
|
|
(4,882 |
) |
|
|
(5,026 |
) |
|
|
(1,370 |
) |
|
|
(11,278 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
4,167 |
|
|
|
65,919 |
|
|
|
(1,370 |
) |
|
|
68,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax (Expense) Benefit |
|
|
(266,520 |
) |
|
|
24,036 |
|
|
|
(43,125 |
) |
|
|
(285,609 |
) |
Deferred Tax (Expense) Benefit |
|
|
6,708 |
|
|
|
204 |
|
|
|
51,297 |
|
|
|
58,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Income Tax (Expense) Benefit |
|
|
(259,812 |
) |
|
|
24,240 |
|
|
|
8,172 |
|
|
|
(227,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
1,712,822 |
|
|
$ |
203,973 |
|
|
$ |
(699,547 |
) |
|
$ |
1,217,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
30,847,114 |
|
|
$ |
13,893,382 |
|
|
$ |
658,735 |
|
|
$ |
45,399,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
$ |
1,635,666 |
|
|
$ |
501,339 |
|
|
$ |
429,580 |
|
|
$ |
2,566,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
$ |
389,395 |
|
|
$ |
115,823 |
|
|
$ |
600,000 |
|
|
$ |
1,105,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
$ |
135,658 |
|
|
$ |
16,657 |
|
|
$ |
9,151 |
|
|
$ |
161,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
$ |
986,093 |
|
|
$ |
1,000 |
|
|
$ |
14,871 |
|
|
$ |
1,001,964 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
January
31, 2023 and October 31, 2022
|