Annual report pursuant to Section 13 and 15(d)

SEGMENT ANALYSIS

v3.24.0.1
SEGMENT ANALYSIS
 12 Months Ended
Oct. 31, 2023
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 14 -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 cost of revenue 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, 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

October 31, 2023 and 2022

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2023                                
                                 
Net Revenues   $ 12,119,066     $ 7,233,022     $ -     $ 19,352,088  
                                 
Cost of Revenues     2,819,796       3,501,237       -       6,321,033  
                                 
Gross Profit     9,299,270       3,731,785       -       13,031,055  
                                 
Research & Development     2,043,890       52,577       -       2,096,467  
Selling, General & Administrative     3,109,566       2,463,087       2,622,383       8,195,036  
                                 
Total Operating Expenses     5,153,456       2,515,664       2,622,383       10,291,503  
                                 
Income (Loss) from Operations     4,145,814       1,216,121       (2,622,383 )     2,739,552  
                                 
Other Income (Expense)                                
Other Income     39,146       -       -       39,146  
Interest Income     544,892       97,638       -       642,530  
                                 
Total Other Income (Expense)     584,038       97,638       -       681,676  
                                 
Income (Loss) before Income Taxes     4,729,852       1,313,759       (2,622,383 )     3,421,228  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (272,126 )     (78,876 )     102,347       (248,655 )
Deferred Tax (Expense) Benefit     (115,954 )     54,382       13,148       (48,424 ) 
                                 
Total Income Tax (Expense) Benefit     (388,080 )     (24,494 )     115,495       (297,079 )
                                 
Net Income (Loss)   $ 4,341,772     $ 1,289,265     $ (2,506,889 )   $ 3,124,149  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 36,969,673     $ 13,604,262     $ 1,267,581     $ 51,841,516  
                                 
Total Liabilities   $ 2,263,761     $ 732,582     $ 416,407     $ 3,412,750  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 4,602,741     $ 584,622     $ 1,200,000     $ 6,387,363  
                                 
Depreciation and Amortization   $ 523,339     $ 100,689     $ 43,502     $ 667,530  
                                 
Purchases of Long-lived Assets   $ 1,996,544     $ 25,404     $ 108,392     $ 2,130,340  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2023 and 2022

 

    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 (Expense)     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 Benefit (Expense)     (868,162 )     39,422       (176,400 )     (1,005,140 )
Deferred Tax (Expense) Benefit     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, 2023 and 2022