Quarterly report [Sections 13 or 15(d)]

SEGMENT ANALYSIS

v3.25.1
SEGMENT ANALYSIS
 3 Months Ended
Jan. 31, 2025
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 – SEGMENT ANALYSIS

 

We operate three reportable segments, “Marine Technology Products Business”, “Acoustic Sensors and Materials Business” and “Service Business” which are managed separately based upon fundamental differences in their operations, allocation of resources and markets.

 

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. Overhead includes 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. Our CODM regularly reviews consolidated net sales, consolidated operating expenses, and consolidated operating income (loss) by segment. Amounts included in consolidated operating expenses include “cost of sales,” “R&D expenses”, “selling, general and administrative expenses,” and “other operating expense (income), net”. Our CODM manages our business by reviewing business plans and strategy, annual forecasts and consolidated results by segment on a quarterly basis.

 

There are inter-segment sales in the supplemental disclosures section of the table below which have been eliminated from our financial statements. There are no internal revenue transactions between our reportable segments. However, for the purpose of segment reporting, these inter-segment sales are only included in the table below.

 

● Marine Technology Business

 

The Marine Technology Business (“Products Business”) 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.

 

● Acoustic Sensors and Materials Business

 

The Company acquired Precision Acoustics Limited (PAL) on October 29, 2024. PAL is a supplier of acoustic sensors and materials. PAL serves a broad base of markets such as the medical, subsea, defense, universities and research and development institutes.

 

● Services Business

 

The Services Business operate primarily as subcontractors to prime defense contractors where they provide engineering services which typically form part of larger mission critical defense systems.

 

The following tables summarize segment asset and operating balances by reportable segment for the three months ended January 31, 2025 and 2024, 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, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business     Acoustic Sensors and Materials Business (“PAL”)     Marine Engineering Business     Overhead     Total  
                               
Three Months Ended January 31, 2025                                        
                                         
Net Revenues   $ 2,275,809     $ 1,312,261     $ 1,621,645     $ -     $ 5,209,715  
                                         
Cost of Revenues     612,168       502,117       666,960       -       1,781,245  
                                         
Gross Profit     1,663,641       810,144       954,685       -       3,428,470  
                                         
Research & Development     405,812       90,964       46,350       -       543,126  
Selling, General & Administrative     565,864       238,254       637,896       781,308       2,223,322  
                                         
Total Operating Expenses     971,676       329,218       684,246       781,308       2,766,448  
                                         
Income (Loss) from Operations     691,965       480,926       270,439       (781,308 )     662,022  
                                         
Other Income                                        
Other Income     5,846       72,821       -       -       78,667  
Interest Income     155,313       2,302       27,356       9,200       194,171  
                                         
Total Other Income     161,159       75,123       27,356       9,200       272,838  
                                         
Income (Loss) before Income Taxes     853,124       556,049       297,795       (772,108 )     934,860  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (48,874 )     -       -       -       (48,874 )
Deferred Tax Benefit     -       -       -       26,989       26,989  
                                         
Total Income Tax (Expense) Benefit     (48,874 )     -       -       26,989       (21,885 )
                                         
Net Income (Loss)   $ 804,250     $ 556,049     $ 297,795     $ (745,119 )   $ 912,975  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 34,107,320     $ 6,558,739     $ 13,573,805     $ 2,657,434     $ 56,897,298  
                                         
Total Liabilities   $ 1,586,101     $ 1,027,551     $ 730,161     $ 440,428     $ 3,784,241  
                                         
Intercompany sales that are not included in Net Revenues shown above   $ 922,331     $ 2,752     $ 18,813     $ 312,000     $ 1,255,896  
                                         
Depreciation and Amortization   $ 147,331     $ 156,370     $ 16,704     $ 13,000     $ 333,405  
                                         
Purchases of Long-lived Assets   $ 18,298     $ 107,342     $ 2,468     $ -     $ 128,108  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2025 and October 31, 2024

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

In the Segment Analysis information presented for the Previous Quarter, there is no information for the Acoustics Sensors and Material Business (“PAL”) as this business unit was acquired on October 29, 2024.

 

    Marine Technology Business     Marine Engineering Business     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 Benefit (Expense)     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  
                                 
Intercompany sales that are not included in Net Revenues shown 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, 2025 and October 31, 2024