Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.23.1
SEGMENT ANALYSIS
 6 Months Ended
Apr. 30, 2023
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 Business” or “Products Segment”) operations are comprised primarily of sale and/or rental of underwater technology sonar solutions, comprising hardware and software and support services. 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 and six months ended April 30, 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

April 30, 2023 and October 31, 2022

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended April 30, 2023                                
                                 
Net Revenues   $ 3,583,429     $ 1,718,080     $ -     $ 5,301,509  
                                 
Cost of Revenues     885,382       792,886       -       1,678,268  
                                 
Gross Profit     2,698,047       925,194       -       3,623,241  
                                 
Research & Development     518,405       7,534       -       525,939  
Selling, General & Administrative     877,961       655,739       708,494       2,242,194  
                                 
Total Operating Expenses     1,396,366       663,273       708,494       2,768,133  
                                 
Income (Loss) from Operations     1,301,681       261,921       (708,494 )     855,108  
                                 
Other Income                                
Other Income     149,907       23,469       -       173,376  
                                 
Total Other Income     149,907       23,469       -       173,376  
                                 
Income (Loss) before Income Taxes     1,451,588       285,390       (708,494 )     1,028,484  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (108,712 )     (2,185 )     42,124       (68,773 )
Deferred Tax (Expense) Benefit     -       -       48,766       48,766  
                                 
Total Income Tax (Expense) Benefit     (108,712 )     (2,185 )     90,890       (20,007 )
                                 
Net Income (Loss)   $ 1,342,876     $ 283,205     $ (617,604 )   $ 1,008,477  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 36,187,625     $ 13,618,065     $ 1,097,772     $ 50,903,462  
                                 
Total Liabilities   $ 1,665,630     $ 802,459     $ 124,632     $ 2,592,721  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 2,084,321     $ 169,811     $ (80,000 )   $ 2,174,132  
                                 
Depreciation and Amortization   $ 143,565     $ 24,757     $ 10,441     $ 178,763  
                                 
Purchases of Long-lived Assets   $ 64,191     $ 18,012     $ 36,246     $ 118,448  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2023 and October 31, 2022

 

NOTE 14 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended April 30, 2022                                
                                 
Net Revenues   $ 3,491,009     $ 1,493,829     $ -     $ 4,984,838  
                                 
Cost of Revenues     816,033       1,137,099       -       1,953,132  
                                 
Gross Profit     2,674,976       356,730       -       3,031,706  
                                 
Research & Development     617,246       (99,868 )     -       517,378  
Selling, General & Administrative     569,451       683,612       780,053       2,033,116  
                                 
Total Operating Expenses     1,186,697       583,744       780,053       2,550,494  
                                 
Income (Loss) from Operations     1,488,279       (227,014 )     (780,053 )     481,212  
                                 
Other Income (Expense)                                
Other Income     9,055       4,098       1,344       14,497  
Interest Expense     (2,502 )     -       -       (2,502 )
                                 
Total Other Income     6,553       4,098       1,344       11,995  
                                 
Income (Loss) before Income Taxes     1,494,832       (222,916 )     (778,709 )     493,207  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     279       146,890       (38,019 )     109,150  
Deferred Tax (Expense) Benefit     (1,926 )     (45,184 )     56,056       8,946  
                                 
Total Income Tax (Expense) Benefit     (1,647 )     101,706       18,037       118,096  
                                 
Net Income (Loss)   $ 1,493,185     $ (121,210 )   $ (760,672 )   $ 611,303  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 30,503,346     $ 13,541,238     $ 818,060     $ 44,862,644  
                                 
Total Liabilities   $ 2,255,971     $ 616,133     $ 447,774     $ 3,319,878  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 413,654     $ 126,870     $ 607,500     $ 1,148,024  
                                 
Depreciation and Amortization   $ 241,469     $ 31,190     $ 9,816     $ 282,475  
                                 
Purchases of Long-lived Assets   $ 84,969     $ 11,049     $ 43,494     $ 139,512  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2023 and October 31, 2022

 

NOTE 14 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Six Months Ended April 30, 2023                                
                                 
Net Revenues   $ 7,407,588     $ 3,490,205     $ -     $ 10,897,793  
                                 
Cost of Revenues     1,949,626       1,571,921       -       3,521,547  
                                 
Gross Profit     5,457,962       1,918,284       -       7,376,246  
                                 
Research & Development     956,713       13,684       -       970,397  
Selling, General & Administrative     1,539,720       1,302,049       1,362,876       4,204,645  
                                 
Total Operating Expenses     2,496,433       1,315,733       1,362,876       5,175,042  
                                 
Income (Loss) from Operations     2,961,529       602,551       (1,362,876 )     2,201,204  
                                 
Other Income (Expense)                                
Other Income     164,927       24,214       -       189,141  
                                 
Total Other Income     164,927       24,214       -       189,141  
                                 
Income (Loss) before Income Taxes     3,126,456       626,765       (1,362,876 )     2,390,345  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (127,585 )     (22,041 )     80,842       (68,784 )
Deferred Tax Benefit (Expense)     -       -       84,773       84,773  
                                 
Total Income Tax (Expense) Benefit     (127,585 )     (22,041 )     165,615       15,989  
                                 
Net Income (Loss)   $ 2,998,871     $ 604,724     $ (1,197,261 )   $ 2,406,334  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 36,187,625     $ 13,618,065     $ 1,097,772     $ 50,903,462  
                                 
Total Liabilities   $ 1,665,630     $ 802,459     $ 124,632     $ 2,592,721  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 2,913,995     $ 215,518     $ 600,000     $ 3,729,513  
                                 
Depreciation and Amortization   $ 272,403     $ 49,667     $ 20,700     $ 342,770  
                                 
Purchases of Long-lived Assets   $ 143,833     $ 22,792     $ 57,731     $ 224,355  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2023 and October 31, 2022

 

NOTE 14 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Six Months Ended April 30, 2022                                
                                 
Net Revenues   $ 7,314,757     $ 3,508,289     $ -     $ 10,823,046  
                                 
Cost of Revenues     1,388,325       2,243,081       -       3,631,406  
                                 
Gross Profit     5,926,432       1,265,208       -       7,191,640  
                                 
Research & Development     1,146,621       43,647       -       1,190,268  
Selling, General & Administrative     1,327,947       1,339,787       1,487,372       4,155,106  
                                 
Total Operating Expenses     2,474,568       1,383,434       1,487,372       5,345,374  
                                 
Income (Loss) from Operations     3,451,864       (118,226 )     (1,487,372 )     1,846,266  
                                 
Other Income (Expense)                                
Other Income     18,104       75,043       1,344       94,491  
Interest Expense     (2,502 )     -       (400 )     (2,902 )
                                 
Total Other Income     15,602       75,043       944       91,589  
                                 
Income (Loss) before Income Taxes     3,467,466       (43,183 )     (1,486,428 )     1,937,855  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit (Expense)     (266,241 )     170,926       (81,144 )     (176,459 )
Deferred Tax (Expense) Benefit     4,781       (44,980 )     107,354       67,155  
                                 
Total Income Tax (Expense) Benefit     (261,460 )     125,946       26,210       (109,304 )
                                 
Net Income (Loss)   $ 3,206,006     $ 82,763     $ (1,460,218 )   $ 1,828,551  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 30,503,346     $ 13,541,238     $ 818,060     $ 44,862,644  
                                 
Total Liabilities   $ 2,255,971     $ 616,133     $ 447,774     $ 3,319,878  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 803,049     $ 242,693     $ 1,207,500     $ 2,253,242  
                                 
Depreciation and Amortization   $ 377,127     $ 47,847     $ 18,967     $ 443,941  
                                 
Purchases of Long-lived Assets   $ 1,071,062     $ 12,049     $ 58,365     $ 1,141,476  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2023 and October 31, 2022