Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.24.1.1.u2
SEGMENT ANALYSIS
 6 Months Ended
Apr. 30, 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 (“R&D”), and Selling, General & Administrative (“SG&A”) identifiable with the reporting business segment. Overheads include general corporate administrative costs.

 

The Company evaluates performance and resources based upon operating income.

 

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 (with entities operating in the UK, USA and Denmark) constitute the Marine Technology Business (“Products Segment”) is a supplier to the underwater/subsea market and selling both hardware and software solutions which include imaging sonar technology solutions, diving and diving communications technology, geophysical products, rental equipment, customization, and field operations services. Coda Octopus Colmek, Inc. (a Utah corporation) and Coda Octopus Martech Ltd (a UK corporation) constitute the Marine Engineering Business (“Services Segment”) and are subcontractors mainly to the prime defense contractors where they provide engineering services.

 

The following tables summarize segment asset and operating balances by reportable segment for the three months and six months ended April 30, 2024, and April 30, 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

April 30, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
Three Months Ended April 30, 2024                                
                                 
Net Revenues   $ 3,524,714     $ 1,798,464     $ -     $ 5,323,178  
                                 
Cost of Revenues     697,464       887,280       -       1,584,744  
                                 
Gross Profit     2,827,250       911,184       -       3,738,434  
                                 
Research & Development     485,061       57,420       -       542,481  
Selling, General & Administrative     792,820       596,451       456,299       1,845,570  
                                 
Total Operating Expenses     1,277,881       653,871       456,299       2,388,051  
                                 
Income (Loss) from Operations     1,549,369       257,313       (456,299 )     1,350,383  
                                 
Other Income                                
Other (Expense) Income     (14,616 )     11,980       -       (2,636 )
Interest Income     202,157       52,067       39,244       293,468  
                                 
Total Other Income     187,541       64,047       39,244       290,832  
                                 
Income (Loss) before Income Taxes     1,736,910       321,360       (417,055 )     1,641,215  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense)     (43,900 )     -       (147,173 )     (191,073 )
Deferred Tax (Expense)     (10,975 )     -       (23,929 )     (34,904 )
                                 
Total Income Tax (Expense)     (54,875 )     -       (171,102 )     (225,977 )
                                 
Net Income (Loss)   $ 1,682,035     $ 321,360     $ (588,157 )   $ 1,415,238  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 37,040,637     $ 13,945,102     $ 3,011,417     $ 53,997,156  
                                 
Total Liabilities   $ 1,807,318     $ 912,679     $ 210,789     $ 2,930,786  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 474,742     $ 104,263     $ 318,000     $ 897,005  
                                 
Depreciation and Amortization   $ 158,112     $ 24,343     $ 11,658     $ 194,113  
                                 
Purchases of Long-lived Assets   $ 153,339     $ 1,185     $ 42,818     $ 197,342  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2024 and October 31, 2023

 

NOTE 12 – 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     2,780       -       -       2,780  
Interest Income     147,127       23,469       -       170,596  
                                 
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 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, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
Six Months Ended April 30, 2024                                
                                 
Net Revenues   $ 7,067,480     $ 2,716,889     $ -     $ 9,784,369  
                                 
Cost of Revenues     1,671,344       1,287,855       -       2,959,199  
                                 
Gross Profit     5,396,136       1,429,034       -       6,825,170  
                                 
Research & Development     946,436       82,022       -       1,028,458  
Selling, General & Administrative     1,628,211       1,196,935       1,065,799       3,890,945  
                                 
Total Operating Expenses     2,574,647       1,278,957       1,065,799       4,919,403  
                                 
Income (Loss) from Operations     2,821,489       150,077       (1,065,799 )     1,905,767  
                                 
Other Income                                
Other Income     5,690       26,694       -       32,384  
Interest Income     337,888       108,876       39,244       486,008  
                                 
Total Other Income     343,578       135,570       39,244       518,392  
                                 
Income (Loss) before Income Taxes     3,165,067       285,647       (1,026,555 )     2,424,159  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense)     (79,440 )     -       (77,618 )     (157,058 )
Deferred Tax Benefit (Expense)     16,353       -       (238,328 )     (221,975 )
                                 
Total Income Tax (Expense) Benefit     (63,087 )     -       (315,946 )     (379,033 )
                                 
Net Income (Loss)   $ 3,101,980     $ 285,647     $ (1,342,501 )   $ 2,045,126  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 37,040,637     $ 13,945,102     $ 3,011,417     $ 53,997,156  
                                 
Total Liabilities   $ 1,807,318     $ 912,679     $ 210,789     $ 2,930,786  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 1,423,676     $ 115,053     $ 630,000     $ 2,168,729  
                                 
Depreciation and Amortization   $ 311,131     $ 49,700     $ 23,820     $ 384,651  
                                 
Purchases of Long-lived Assets   $ 285,762     $ 3,393     $ 70,663     $ 359,818  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2024 and October 31, 2023

 

NOTE 12 – 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                                
Other Income     5,684       -       -       5,684  
Interest Income     159,243       24,214       -       183,457  
                                 
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     -       -       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, 2024 and October 31, 2023