Annual report pursuant to Section 13 and 15(d)

SEGMENT ANALYSIS

v3.24.4
SEGMENT ANALYSIS
12 Months Ended
Oct. 31, 2024
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 -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. Up until October 29, 2024, the Products Segment was constituted by our Marine Technology Business. On October 29, 2024, we acquired an additional business unit within the Products Segment, PAL. For the purposes of this Note 15, PAL is excluded from the Consolidated Statements of Income and Comprehensive Income since this entity was acquired on October 29, 2024, and it had no material Income Statement activity in the two days from the acquisition date to the end of the Company’s fiscal end on October 31, 2024. However, the fair value of assets acquired, and liabilities assumed for PAL, have been included in our Consolidated Balance Sheet and in respect of the Segment information provided immediately below, PAL is included in the Supplemental Disclosure information in the table below but not in the income and expense statement.

 

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. Inter-company sales are not included in our financial statements. For segment reporting purposes we have shown in the table below our inter-company sales during the reporting period.

 

Coda Octopus Products (with entities operating in the UK, USA and Denmark) constitute the Marine Technology Business (“Products Segment”) where it 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). PAL is a supplier of products to the ultrasound, acoustic measurement and NDT market. 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 table summarizes segment asset and operating balances by reportable segment as of and for the years ended October 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

October 31, 2024 and 2023

 

    Products     Services     Overhead     Total  
                         
Year Ended October 31, 2024                                
                                 
Net Revenues   $ 12,806,603     $ 7,509,558     $ -     $ 20,316,161  
                                 
Cost of Revenues     2,824,541       3,318,515       -       6,143,056  
                                 
Gross Profit     9,982,062       4,191,043       -       14,173,105  
                                 
Research & Development     2,019,112       223,317       -       2,242,429  
Selling, General & Administrative     3,814,860       2,248,493       2,283,192       8,346,545  
                                 
Total Operating Expenses     5,833,972       2,471,810       2,283,192       10,588,974  
                                 
Income (Loss) from Operations     4,148,090       1,719,233       (2,283,192 )     3,584,131  
                                 
Other Income                                
Other Income     53,960       34,422       -       88,382  
Interest Income     657,817       198,239       82,719       938,775  
                                 
Total Other Income     711,777       232,661       82,719       1,027,157  
                                 
Income (Loss) before Income Taxes     4,859,867       1,951,894       (2,200,473 )     4,611,288  
                                 
Income Tax Expense                                
Current Tax Expense     316,955     169,374       227,341     713,670
Deferred Tax Expense (Benefit)     (5,655 )     19,169       238,108     251,622
                                 
Total Income Tax Expense     311,300     188,543       465,449     965,292
                                 
Net Income (Loss)   $ 4,548,567     $ 1,763,351     $ (2,665,922 )   $ 3,645,996  
                                 
Supplemental Disclosures                                
                                 
*Total Assets   $ 40,922,453     $ 13,404,567     $ 3,217,524     $ 57,544,544  
                                 
*Total Liabilities   $ 3,072,876     $ 842,450     $ 500,695     $ 4,416,021  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 3,367,839     $ 238,143     $ 1,266,000     $ 4,871,982  
                                 
Depreciation and Amortization   $ 632,882     $ 88,166     $ 49,487     $ 770,535  
                                 
Purchases of Long-lived Assets   $ 345,191     $ 23,786     $ 89,103     $ 458,079  

 

* The Total Assets and Total Liabilities included in the Supplemental Disclosures include PAL

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2024 and 2023

 

    Products     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                                
Other Income     39,146       -       -       39,146  
Interest Income     544,892       97,638       -       642,530  
                                 
Total Other Income     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     $ (2,506,888 )   $ 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, 2024 and 2023