Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

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SEGMENT ANALYSIS
 3 Months Ended
Jan. 31, 2024
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 12 – SEGMENT ANALYSIS

 

We operate in two reportable segments, “Products Business” and “Service Business” which are managed separately based upon fundamental differences in their operations. Segment operating income is total Segment revenue reduced by cost of revenues and operating expenses (research and development and Selling, General & Administrative) identifiable with the reporting business segment. Overheads include general corporate administrative costs.

 

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the critical accounting policies in Item 2 of this Form 10-Q.

 

There are inter-segment sales in the table below which have been eliminated from our financial statements. However, for the purpose of segment reporting, these inter-segment sales are only included in the table below.

 

Coda Octopus Products constitute the Marine Technology Business (“Products Segment”) is a supplier to the underwater/subsea market and selling both hardware and software solutions which includes imaging sonar technology solutions, diving technology, geophysical products, rental equipment, customization, and field operations services. Coda Octopus Colmek, Inc. and Coda Octopus Martech Ltd constitute the Marine Engineering Business (“Services Segment”) and are engineering subcontractors to prime defense contractors.

 

The following tables summarize segment asset and operating balances by reportable segment for the three months ended January 31, 2024 and 2023, 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, 2024 and October 31, 2023

 

NOTE 12 -SEGMENT ANALYSIS (Continued)

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended January 31, 2024                                
                                 
Net Revenues   $ 3,542,766     $ 918,425     $ -     $ 4,461,191  
                                 
Cost of Revenues     973,880       400,575       -       1,374,455  
                                 
Gross Profit     2,568,886       517,850       -       3,086,736  
                                 
Research & Development     461,375       24,602       -       485,977  
Selling, General & Administrative     835,391       600,484       609,500       2,045,375  
                                 
Total Operating Expenses     1,296,766       625,086       609,500       2,531,352  
                                 
Income (Loss) from Operations     1,272,120       (107,236 )     (609,500 )     555,384  
                                 
Other Income                                
Other Income     20,306       14,714       -       35,020  
Interest Income     135,731       56,809       -       192,540  
                                 
Total Other Income     156,037       71,523       -       227,560  
                                 
Income (Loss) before Income Taxes     1,428,157       (35,713 )     (609,500 )     782,944  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (35,540 )     -       69,555       34,015  
Deferred Tax (Expense) Benefit     27,328       -       (214,399 )     (187,071 )
                                 
Total Income Tax (Expense) Benefit     (8,212 )     -       (144,844 )     (153,056 )
                                 
Net Income (Loss)   $ 1,419,945     $ (35,713 )   $ (754,344 )   $ 629,888  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 36,685,343     $ 13,298,356     $ 3,029,244     $ 53,012,943  
                                 
Total Liabilities   $ 1,963,391     $ 429,635     $ 470,239     $ 2,863,265  
                                 
Revenues from Intercompany Sales – eliminated from sales above   $ 948,934     $ 10,790     $ 312,000     $ 1,271,724  
                                 
Depreciation and Amortization   $ 153,019     $ 25,357     $ 12,162     $ 190,538  
                                 
Purchases of Long-lived Assets   $ 132,423     $ 2,208     $ 27,845     $ 162,476  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

    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 (Expense)                                
Other Income     2,904       -       -       2,904  
Interest Income     12,116       745       -       12,861  
                                 
Total Other Income (Expense)     15,020       745       -       15,765  
                                 
Income (Loss) before Income Taxes     1,674,868       341,375       (654,382 )     1,361,861  
                                 
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, 2024 and October 31, 2023