Quarterly report [Sections 13 or 15(d)]

SEGMENT ANALYSIS

v3.25.2
SEGMENT ANALYSIS
 6 Months Ended
Apr. 30, 2025
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 – SEGMENT ANALYSIS

 

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

 

Segment operating income is total segment net 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.

 

The Net Revenues shown in this Note 15 in the tables below comprise sales which have been made externally and exclude sales between the companies within the Group (“Inter-Company Sales”). For segment reporting purposes we have, nevertheless, included in the Supplemental Disclosures in the tables below, information on Inter-Company Sales in the reporting period. Inter-Company sales are not included in our net revenues.

 

● Marine Technology Business

 

The Marine Technology Business constitutes our core business in the Group and is a supplier of various technologies to the underwater/subsea market. Its key technologies are its real time 3D volumetric imaging sonars and diving solutions (DAVD). It also supplies a suite of geophysical products, inertial navigation sensors, rental equipment, customization of technology services and field support 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.

 

● Marine Engineering Business

 

The Marine Engineering Business operates 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 and six months ended April 30, 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 Unaudited Consolidated Financial Statements

April 30, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business     Acoustic Sensors and Materials Business    

Marine Engineering

Business		     Overhead     Total  
                               
Three Months Ended April 30, 2025                                        
                                         
Net Revenues   $ 3,878,090     $ 1,299,069     $ 1,840,300     $ -     $ 7,017,459  
                                         
Cost of Revenues     1,251,417       449,664       819,097       -       2,520,178  
                                         
Gross Profit     2,626,673       849,405       1,021,203       -       4,497,281  
                                         
Research & Development     565,385       95,266       29,344               689,995  
Selling, General & Administrative     1,097,358       608,923       540,091       473,230       2,719,602  
                                         
Total Operating Expenses     1,662,743       704,189       569,435       473,230       3,409,597  
                                         
Income (Loss) from Operations     963,930       145,216       451,768       (473,230 )     1,087,684  
                                         
Other Income                                        
Other Income     4,967       27,365       -       -       32,332  
Interest Income     86,358       1,290       25,954       31,992       145,594  
                                         
Total Other Income     91,325       28,655       25,954       31,992       177,926  
                                         
Income (Loss) before Income Taxes     1,055,255       173,871       477,722       (441,238 )     1,265,610  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (32,658 )     (167,083 )     -       (174,960 )     (374,701 )
Deferred Tax Benefit     -       -       -       17,853       17,853  
                                         
Total Income Tax (Expense) Benefit     (32,658 )     (167,083 )     -       (157,107 )     (356,848 )
                                         
Net Income (Loss)   $ 1,022,597     $ 6,788     $ 477,722     $ (598,345 )   $ 908,762  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 37,175,601     $ 7,036,570     $ 13,538,446     $ 2,839,527     $ 60,590,144  
                                         
Total Liabilities   $ 2,689,882     $ 1,241,450     $ 609,333     $ 160,982     $ 4,701,647  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 2,189,543     $ 19,339     $ 83,921     $ 300,000     $ 2,592,803  
                                         
Depreciation and Amortization   $ 134,486     $ 173,022     $ 15,823     $ 12,336     $ 335,667  
                                         
Purchases of Long-lived Assets   $ 4,997     $ 6,635     $ 12,579     $ -     $ 24,211  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 2025 and October 31, 2024

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

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

 

    Marine Technology Business     Marine Engineering Business     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 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)                                
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 Unaudited Consolidated Financial Statements

April 30, 2025 and October 31, 2024

 

    Marine Technology Business     Acoustic Sensors and Materials Business    

Marine Engineering

Business		     Overhead     Total  
                               
Six Months Ended April 30, 2025                                        
                                         
Net Revenues   $ 6,153,899     $ 2,611,330     $ 3,461,945     $ -     $ 12,227,174  
                                         
Cost of Revenues     1,863,585       951,781       1,486,057       -       4,301,423  
                                         
Gross Profit     4,290,314       1,659,549       1,975,888       -       7,925,751  
                                         
Research & Development     971,197       186,230       75,694       -       1,233,121  
Selling, General & Administrative     1,663,222       847,177       1,177,987       1,254,538       4,942,924  
                                         
Total Operating Expenses     2,634,419       1,033,407       1,253,681       1,254,538       6,176,045  
                                         
Income (Loss) from Operations     1,655,895       626,142       722,207       (1,254,538 )     1,749,706  
                                         
Other Income                                        
Other Income     10,813       100,186       -       -       110,999  
Interest Income     241,671       3,592       53,310       41,192       339,765  
                                         
Total Other Income     252,484       103,778       53,310       41,192       450,764  
                                         
Income (Loss) before Income Taxes     1,908,379       729,920       775,517       (1,213,346 )     2,200,470  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (81,532 )     (167,083 )     -       (174,960 )     (423,575 )
Deferred Tax Benefit     -       -       -       44,842       44,842  
                                         
Total Income Tax (Expense)     (81,532 )     (167,083 )     -       (130,118 )     (378,733 )
                                         
Net Income (Loss)   $ 1,826,847     $ 562,837     $ 775,517     $ (1,343,464 )   $ 1,821,737  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 37,175,601     $ 7,036,570     $ 13,538,446     $ 2,839,527     $ 60,590,144  
                                         
Total Liabilities   $ 2,689,882     $ 1,241,450     $ 609,333     $ 160,982     $ 4,701,647  
                                         
Revenues from inter-company sales - eliminated from sales above   $ 3,111,874     $ 22,091     $ 102,734     $ 612,000     $ 3,848,699  
                                         
Depreciation and Amortization   $ 281,817     $ 329,392     $ 32,527     $ 25,336     $ 669,072  
                                         
Purchases of Long-lived Assets   $ 23,295     $ 113,977     $ 15,047     $ -     $ 152,319  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 2025 and October 31, 2024

 

    Marine Technology Business     Marine Engineering Business     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 inter-company 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 Unaudited Consolidated Financial Statements

April 30, 2025 and October 31, 2024