Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.24.3
SEGMENT ANALYSIS
 9 Months Ended
Jul. 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 (“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.

 

The Net Revenues shown in this Note 12 in the tables below comprise sales which have been made externally and exclude intercompany sales (sales between companies in our Group). For segment reporting purposes we have, nevertheless, included in the Supplemental Disclosures in the tables below, information on intercompany sales in the reporting period. Intercompany sales are not included in Net Revenues.

 

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 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 nine months ended July 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

July 31, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
Three Months Ended July 31, 2024                                
                                 
Net Revenues   $ 3,048,544     $ 2,428,000     $ -     $ 5,476,544  
                                 
Cost of Revenues     521,141       906,865       -       1,428,006  
                                 
Gross Profit     2,527,403       1,521,135       -       4,048,538  
                                 
Research & Development     459,879       36,480       -       496,359  
Selling, General & Administrative     1,085,495       498,941       576,969       2,161,405  
                                 
Total Operating Expenses     1,545,374       535,421       576,969       2,657,764  
                                 
Income (Loss) from Operations     982,029       985,714       (576,969 )     1,390,774  
                                 
Other Income                                
Other Income     10,396       67       -       10,463  
Interest Income     161,875       44,707       23,427       230,009  
                                 
Total Other Income     172,271       44,774       23,427       240,472  
                                 
Income (Loss) before Income Taxes     1,154,300       1,030,488       (553,542 )     1,631,246  
                                 
Income Tax (Expense)                                
Current Tax (Expense)     (101,172 )     -       (224,453 )     (325,625 )
Deferred Tax (Expense)     (27,309 )     -       (3,654 )     (30,963 )
                                 
Total Income Tax (Expense)     (128,481 )     -       (228,107 )     (356,588 )
                                 
Net Income (Loss)   $ 1,025,819     $ 1,030,488     $ (781,649 )   $ 1,274,658  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 37,464,861     $ 14,827,016     $ 3,653,237     $ 55,945,114  
                                 
Total Liabilities   $ 1,952,347     $ 747,484     $ 440,246     $ 3,140,077  
                                 
Intercompany sales that are not included in Net Revenues shown above   $ 1,088,573     $ 70,284     $ 318,000     $ 1,476,857  
                                 
Depreciation and Amortization   $ 167,914     $ 21,029     $ 12,058     $ 201,001  
                                 
Purchases of Long-lived Assets   $ 151,526     $ 13,414     $ 15,082     $ 180,022  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

   

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     2,848       -       -       2,848  
Interest Income     177,615       34,089       -       211,704  
                                 
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 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  
                                 
Intercompany sales that are not included in Net Revenues shown 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, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
Nine Months Ended July 31, 2024                                
                                 
Net Revenues   $ 10,116,024     $ 5,144,889     $ -     $ 15,260,913  
                                 
Cost of Revenues     2,192,486       2,194,719       -       4,387,205  
                                 
Gross Profit     7,923,538       2,950,170       -       10,873,708  
                                 
Research & Development     1,406,315       118,502       -       1,524,817  
Selling, General & Administrative     2,713,704       1,695,875       1,642,771       6,052,350  
                                 
Total Operating Expenses     4,120,019       1,814,377       1,642,771       7,577,167  
                                 
Income (Loss) from Operations     3,803,519       1,135,793       (1,642,771 )     3,296,541  
                                 
Other Income                                
Other Income     16,086       26,761       -       42,847  
Interest Income     499,763       153,583       62,671       716,017  
                                 
Total Other Income     515,849       180,344       62,671       758,864  
                                 
Income (Loss) before Income Taxes     4,319,368       1,316,137       (1,580,100 )     4,055,405  
                                 
Income Tax (Expense)                                
Current Tax (Expense)     (180,612 )     -       (302,071 )     (482,683 )
Deferred Tax (Expense)     (10,956 )     -       (241,982 )     (252,938 )
                                 
Total Income Tax (Expense)     (191,568 )     -       (544,053 )     (735,621 )
                                 
Net Income (Loss)   $ 4,127,800     $ 1,316,137     $ (2,124,153 )   $ 3,319,784  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 37,464,861     $ 14,827,016     $ 3,653,237     $ 55,945,114  
                                 
Total Liabilities   $ 1,952,347     $ 747,484     $ 440,246     $ 3,140,077  
                                 
Intercompany sales that are not included in Net Revenues shown above   $ 2,512,249     $ 185,337     $ 948,000     $ 3,645,586  
                                 
Depreciation and Amortization   $ 474,248     $ 70,730     $ 35,877     $ 580,855  
                                 
Purchases of Long-lived Assets   $ 437,288     $ 16,807     $ 85,745     $ 539,840  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2024 and October 31, 2023

 

NOTE 12 – 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                                
Other Income     8,532       -       -       8,532  
Interest Income     336,858       58,303               395,161  
                                 
Total Other Income     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 Benefit     -       -       115,158       115,158  
                                 
Total Income Tax (Expense) Benefit     (166,649 )     (77,517 )     221,769       (22,397 )
                                 
Net Income (Loss)   $ 4,051,507     $ 1,038,662     $ (1,645,055 )   $ 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  
                                 
Intercompany sales that are not included in Net Revenues shown 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, 2024 and October 31, 2023