Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT ANALYSIS

v3.25.4
SEGMENT ANALYSIS
 12 Months Ended
Oct. 31, 2025
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 -SEGMENT ANALYSIS

 

Our segment reporting is in accordance with the new standard ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.

 

We operate three reportable segments, “Marine Technology Business”, “Acoustic Sensors and Materials Business” and “Defense Engineering Services 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. Corporate includes general corporate administrative expenses. The Acoustic Sensors and Materials Business (“PAL”) was acquired on October 29, 2024 and had no material income statement activity for the remaining two days of up to October 31, 2024. Therefore, there is no comparative financial data for PAL for 2024 FY. However, the fair value of assets acquired, and liabilities assumed for PAL have been included in our audited Consolidated Balance Sheet for the 2024 FY and in respect of the Segment Disclosure for 2024 PAL was included in the Supplemental Disclosures relating to the Marine Technology Business. The Segment Disclosure information for the 2025 FY includes full Income Statement information for PAL.

 

Our Chief Operating Decision Maker (CODM) evaluates the operating results and performance of all three of our segments using GAAP-reporting for revenue, expenses and net income by segment. This financial metric is used to view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions, take decisions on business investments and monitor budget-to-actual variances on a quarterly and annual basis.

 

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”) and is an established supplier to the subsea marking where it sells and rents 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. PAL is a supplier of products and services to the ultrasound, acoustic measurement and NDT market. Coda Octopus Engineering, Inc. (a Utah corporation) and Coda Octopus Martech Ltd (a UK corporation) constitute the Defense Engineering Services 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, 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

October 31, 2025 and 2024

 

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

Defense Engineering Services

Business (“Services”)

     Corporate     Total  
                               
Year Ended October 31, 2025                                        
                                         
Net Revenues   $

13,221,339

     $ 5,409,954     $ 7,931,833     $ -     $

26,563,126

  
                                         
Cost of Revenues     3,375,922       2,237,430       3,287,406       -       8,900,758  
                                         
Gross Profit    

9,845,417

       3,172,524       4,644,427       -      

17,662,368

  
                                         
Research & Development     1,858,139       414,370       175,253       -       2,447,762  
Selling, General & Administrative     4,091,421      

1,920,985

       2,466,341       2,199,831      

10,678,578

  
                                         
Total Operating Expenses     5,949,560      

2,335,355

       2,641,594       2,199,831      

13,126,340

  
                                         
Income (Loss) from Operations    

3,895,857

      

837,169

       2,002,833       (2,199,831 )    

4,536,028

  
                                         
Other Income                                        
Other Income     73,331       194,761       -       -       268,092  
Interest Income     505,465       5,661       107,106       89,865       708,097  
                                         
Total Other Income     578,796       200,422       107,106       89,865       976,189  
                                         
Income (Loss) before Income Taxes    

4,474,653

      

1,037,591

       2,109,939       (2,109,966 )    

5,512,217

  
                                         
Income Tax Expense                                        
Current Tax Expense     201,167       43,118       183,338       722,192       1,149,815  
Deferred Tax Expense (Benefit)     188,755       91,045       13,252       (60,580 )    

232,472
                                         
Total Income Tax Expense     389,922       134,163       196,590       661,612       1,382,287  
                                         
Net Income (Loss)   $

4,084,731

     $

903,428

     $ 1,913,349     $ (2,771,578 )   $

4,129,930

  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $

38,279,403

     $

7,100,814

     $ 14,766,853     $ 4,346,492     $

64,493,562

  
                                         
Total Liabilities   $

2,969,095

     $ 1,376,533     $ 1,198,902     $ 833,618     $

6,378,148

  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 6,144,638     $ 51,896     $ 374,311     $ 2,600,000     $ 9,170,845  
                                         
Depreciation and Amortization   $ 563,530     $

710,565

     $ 65,480     $ 51,935     $

1,391,510

  
                                         
Purchases of Long-lived Assets   $ 531,792     $ 248,560     $

53,980

     $ 336,386     $

1,170,718

  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2025 and 2024

 

    Marine Technology Business (“Products”)    

Defense Engineering Services

Business (“Services”)

     Corporate     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 (Benefit) Expense     (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     $ 458,080  

 

  * In the 2024 FY Supplemental Disclosures Information, the Marine Technology Business Disclosure under “Total Assets” includes $4,529,648 of assets pertaining to PAL and under “Total Liabilities” includes $1,455,145 of liabilities pertaining to PAL. There was no Revenue from Intercompany Sales, Depreciation and Amortization or Purchases of Long-lived Assets pertaining to PAL.

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2025 and 2024