Quarterly report [Sections 13 or 15(d)]

SEGMENT ANALYSIS

v3.25.2
SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 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 Chief Operating Decision Maker (“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, Echoscope®, and diving solutions (DAVD). It also supplies a suite of geophysical products, inertial navigation sensors, digital audio communications systems, 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. PAL also performs calibration services for medical devices and is accredited to ISO/IEC 17025 standard. PAL is one of only two organizations in the United Kingdom with this certification, alongside the National Physical Laboratory (NPL). Globally, only a handful of facilities hold ISO/IEC 17025 accreditation for these measurements. Ultrasonic free-field sensitivity calibration is critical for markets that require precision ultrasonic measurement, strict safety compliance, and full metrological traceability. These include regulated and high-risk applications, such as diagnostic and therapeutic medical ultrasound and defense and underwater acoustics, where free-field calibration is essential to ensure accurate beam sensitivity and minimal interference.

 

● Marine Engineering Business

 

The Marine Engineering Business operates primarily as subcontractors to prime defense contractors where they provide engineering services and supplies proprietary sub-assemblies 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 nine months ended July 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 Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Acoustic Sensors and Materials Business
(“PAL”)		    

Marine

Engineering

Business (“Engineering”) 		    Overhead     Total  
                               
Three Months Ended July 31, 2025                                        
                                         
Net Revenues   $ 3,984,475     $ 1,458,536     $ 1,621,784     $ -     $ 7,064,795  
                                         
Cost of Revenues     915,778       659,377       665,884       -       2,241,039  
                                         
Gross Profit     3,068,697       799,159       955,900       -       4,823,756  
                                         
Research & Development     428,007       98,502       45,959       -       572,468  
Selling, General & Administrative     1,342,856       451,588       662,604       414,261       2,871,309  
                                         
Total Operating Expenses     1,770,863       550,090       708,563       414,261       3,443,777  
                                         
Income (Loss) from Operations     1,297,834       249,069       247,337       (414,261 )     1,379,979  
                                         
Other Income                                        
Other Income     7,027       1,895       -       -       8,922  
Interest Income     121,878       1,144       29,998       1,828       154,848  
                                         
Total Other Income     128,905       3,039       29,998       1,828       163,770  
                                         
Income (Loss) before Income Taxes     1,426,739       252,108       277,335       (412,433 )     1,543,749  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     363     (3,160 )     (46,389 )     (219,600 )     (268,786 )
Deferred Tax Benefit     -       -       -       8,022       8,022  
                                         
Total Income Tax (Expense) Benefit     363     (3,160 )     (46,389 )     (211,578 )      (260,764 )
                                         
Net Income (Loss)   $ 1,427,102     $ 248,948     $ 230,946     $ (624,011 )   $ 1,282,985  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 38,121,854     $ 6,838,086     $ 13,485,367     $ 3,467,751     $ 61,913,058  
                                         
Total Liabilities   $ 2,313,810     $ 1,215,699     $ 744,611     $ 367,192     $ 4,641,312  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 2,108,899     $ 22,914     $ 171,218     $ 1,563,000     $ 3,866,031  
                                         
Depreciation and Amortization   $ 142,362     $ 196,344     $ 16,446     $ 13,143     $ 368,295  
                                         
Purchases of Long-lived Assets   $ 210,225     $ 20,072     $ 10,050     $ -     $ 240,347  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 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

(“Products”)

    

Marine

Engineering

Business (“Engineering”) 		    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) Benefit                                
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  
                                 
Revenues from Intercompany Sales - eliminated from sales 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 Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Acoustic Sensors and Materials Business
(“PAL”)		    

Marine

Engineering

Business (“Engineering”) 		    Overhead     Total  
                               
Nine Months Ended July 31, 2025                                        
                                         
Net Revenues   $ 10,138,374     $ 4,069,866     $ 5,083,729     $ -     $ 19,291,969  
                                         
Cost of Revenues     2,779,363       1,611,158       2,151,941       -       6,542,462  
                                         
Gross Profit     7,359,011       2,458,708       2,931,788       -       12,749,507  
                                         
Research & Development     1,399,204       284,732       121,653       -       1,805,589  
Selling, General & Administrative     3,006,078       1,298,765       1,840,591       1,668,799       7,814,233  
                                         
Total Operating Expenses     4,405,282       1,583,497       1,962,244       1,668,799       9,619,822  
                                         
Income (Loss) from Operations     2,953,729       875,211       969,544       (1,668,799 )     3,129,685  
                                         
Other Income                                        
Other Income     17,840       102,081       -       -       119,921  
Interest Income     363,549       4,736       83,308       43,020       494,613  
                                         
Total Other Income     381,389       106,817       83,308       43,020       614,534  
                                         
Income (Loss) before Income Taxes     3,335,118       982,028       1,052,852       (1,625,779 )     3,744,219  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (81,169 )     (170,243 )     (46,389 )     (394,560 )     (692,361 )
Deferred Tax Benefit     -       -       -       52,864       52,864  
                                         
Total Income Tax (Expense)     (81,169 )     (170,243 )     (46,389 )     (341,696 )     (639,497 )
                                         
Net Income (Loss)   $ 3,253,949     $ 811,785     $ 1,006,463     $ (1,967,475 )   $ 3,104,722  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 38,121,854     $ 6,838,086     $ 13,485,367     $ 3,467,751     $ 61,913,058  
                                         
Total Liabilities   $ 2,313,810     $ 1,215,699     $ 744,611     $ 367,192     $ 4,641,312  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 5,220,773     $ 45,005     $ 273,952     $ 2,175,000     $ 7,714,730  
                                         
Depreciation and Amortization   $ 424,179     $ 525,736     $ 48,973     $ 38,479     $ 1,037,367  
                                         
Purchases of Long-lived Assets   $ 233,519     $ 134,049     $ 25,098     $ -     $ 392,666  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Marine Engineering Business (“Engineering”)     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) Benefit                                
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  
                                 
Revenues from Intercompany Sales - eliminated from sales 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 Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024