Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.23.2
SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 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.

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2023, and October 31, 2022

 

NOTE 14 – SEGMENT ANALYSIS (Continued)

 

The following tables summarize segment asset and operating balances by reportable segment for the three and nine months ended July 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

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2023                                
                                 
Net Revenues   $ 2,863,251     $ 2,027,281     $ -     $ 4,890,532  
                                 
Cost of Revenues     512,091       1,013,217       -       1,525,308  
                                 
Gross Profit     2,351,160       1,014,064       -       3,365,224  
                                 
Research & Development     557,260       11,027       -       568,287  
Selling, General & Administrative     882,663       547,712       503,948       1,934,323  
                                 
Total Operating Expenses     1,439,923       558,739       503,948       2,502,610  
                                 
Income (Loss) from Operations     911,237       455,325       (503,948 )     862,614  
                                 
Other Income                                
Other Income     180,463       34,089       -       214,552  
                                 
Total Other Income     180,463       34,089       -       214,552  
                                 
Income (Loss) before Income Taxes     1,091,700       489,414       (503,948 )     1,077,166  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (39,064 )     (55,476 )     25,769       (68,771 )
Deferred Tax (Expense) Benefit     -       -       30,385       30,385  
                                 
Total Income Tax (Expense) Benefit     (39,064 )     (55,476 )     56,154       (38,386 )
                                 
Net Income (Loss)   $ 1,052,636     $ 433,938     $ (447,794 )   $ 1,038,780  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 37,173,921     $ 13,962,350     $ 833,524     $ 51,969,795  
                                 
Total Liabilities   $ 1,619,997     $ 679,522     $ (166,953 )   $ 2,132,566  
                                 
Revenues from Intercompany Sales – eliminated from sales above   $ 1,174,823     $ 106,328     $ 300,000     $ 1,581,151  
                                 
Depreciation and Amortization   $ 141,764     $ 25,716     $ 11,446     $ 178,927  
                                 
Purchases of Long-lived Assets   $ 263,493     $ 2,814     $ 28,946     $ 295,253  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2023, and October 31, 2022

 

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) Benefit   (226,264 )   (23,148 )   (77,320 )     (326,732 )
Deferred Tax (Expense) 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, 2023, and October 31, 2022

 

NOTE 14 – SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Nine Months Ended July 31, 2023                                
                                 
Net Revenues   $ 10,270,839     $ 5,517,486     $ -     $ 15,788,325  
                                 
Cost of Revenues     2,461,717       2,585,138       -       5,046,855  
                                 
Gross Profit     7,809,122       2,932,348       -       10,741,470  
                                 
Research & Development     1,513,973       24,711       -       1,538,684  
Selling, General & Administrative     2,422,383       1,849,761       1,866,824       6,138,968  
                                 
Total Operating Expenses     3,936,356       1,874,472       1,866,824       7,677,652  
                                 
Income (Loss) from Operations     3,872,766       1,057,876       (1,866,824 )     3,063,818  
                                 
Other Income (Expense)                                
Other Income     345,390       58,303       -       403,693  
                                 
Total Other Income (Expense)     345,390       58,303       -       403,693  
                                 
Income (Loss) before Income Taxes     4,218,156       1,116,179       (1,866,824 )     3,467,511  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (166,649 )     (77,517 )     106,611       (137,555 )
Deferred Tax (Expense) Benefit     -       -       115,158       115,158  
                                 
Total Income Tax (Expense) Benefit     (166,649 )     (77,517 )     221,770       (22,397 )
                                 
Net Income (Loss)   $ 4,051,507     $ 1,038,662     $ (1,645,054 )   $ 3,445,114  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 37,173,921     $ 13,962,350     $ 833,524     $ 51,969,795  
                                 
Total Liabilities   $ 1,619,997     $ 679,522     $ (166,953 )   $ 2,132,566  
                                 
Revenues from Intercompany Sales – eliminated from sales above   $ 4,088,818     $ 321,846     $ 900,000     $ 5,310,664  
                                 
Depreciation and Amortization   $ 414,167     $ 75,201     $ 32,146     $ 521,515  
                                 
Purchases of Long-lived Assets   $ 407,326     $ 25,606     $ 76,677     $ 509,609  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2023, and October 31, 2022

 

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       2004       111,334  
                                 
Income (Loss) before Income Taxes     5,617,190       378,448       (2,014,326 )     3,981,312  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit   (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, 2023, and October 31, 2022