Quarterly report [Sections 13 or 15(d)]

SEGMENT ANALYSIS

v3.26.1
SEGMENT ANALYSIS
 3 Months Ended
Jan. 31, 2026
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

Note 15 – SEGMENT ANALYSIS

 

We operate three reportable segments, “Marine Technology Business”, “Acoustic Sensors and Materials Business” and the “Defense Engineering Services Business” (together “Business Segments”).

 

These Business Segments are managed separately based upon fundamental differences in their operations, market segments and allocation of resources. Segment operating income is total segment revenue reduced by cost of revenues and operating expenses, R&D and SG&A identifiable with the reporting business segment. Corporate expenses include general corporate administrative costs.

 

Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer. Our CODM evaluates the operating results and performance of all Business 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 to monitor budget to actual performance on a monthly, quarterly and annual basis.

 

The net revenues shown in this Note 15 in the tables below comprise sales which have been made externally. Inter-company sales between our reportable segments are eliminated from our income statement. 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 consolidated net revenues reported.

 

● Marine Technology Business (“Products”)

 

The Marine Technology Business constitutes our core business in the Group and to which we are allocating most of our resources. It is a supplier of various real time 3D imaging and augmented reality diving technologies to the underwater/subsea market.

 

● Acoustic Sensors and Materials Business (“PAL”)

 

PAL is a supplier of acoustic sensors and materials. PAL’s sensors are primarily used for precision ultrasonic measurement and it serves a broad base of markets such as the medical, subsea, defense, universities and research and development institutes.

 

● Defense Engineering Services Business (“Services”)

 

The Defense Engineering Services Business consists of two discrete business operations – one USA based and the other UK based. They operate primarily as subcontractors to prime defense contractors where they provide engineering services and supply 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 ended January 31, 2026, and 2025, 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

January 31, 2026 and October 31, 2025

 

    Marine Technology Business (“Products”)     Acoustic Sensors and Materials Business (“PAL”)     Defense Engineering Services Business (“Services”)     Corporate     Total  
                               
Three Months Ended January 31, 2026                                        
                                         
Net Revenues   $ 3,355,003     $ 1,583,759     $ 1,771,350     $ -     $ 6,710,112  
                                         
Cost of Revenues     828,380       525,177       989,521       -       2,343,078  
                                         
Gross Profit     2,526,623       1,058,582       781,829       -       4,367,034  
                                         
Research & Development     396,876       110,009       99,217       -       606,102  
Selling, General & Administrative     1,081,634       493,108       571,512       604,608       2,750,862  
                                         
Total Operating Expenses     1,478,510       603,117       670,729       604,608       3,356,964  
                                         
Income (Loss) from Operations     1,048,113       455,465       111,100       (604,608 )     1,010,070  
                                         
Other Income                                        
Other Income     4,430       3       -       -       4,433  
Interest Income     125,425       1,246       22,805       22,794       172,270  
                                         
Total Other Income     129,855       1,249       22,805       22,794       176,703  
                                         
Income (Loss) before Income Taxes     1,177,968       456,714       133,905       (581,814 )     1,186,773  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (168,551 )     (104,722 )     (29,980 )     40,037       (263,216 )
Deferred Tax Benefit     -       -       -       7,166       7,166  
                                         
Total Income Tax (Expense) Benefit     (168,551 )     (104,722 )     (29,980 )     47,203       (256,050 )
                                         
Net Income (Loss)   $ 1,009,417     $ 351,992     $ 103,925     $ (534,611 )   $ 930,723  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 39,273,580     $ 7,408,563     $ 14,897,916     $ 4,041,520     $ 65,621,579  
                                         
Total Liabilities   $ 2,214,098     $ 1,299,644     $ 1,025,302     $ 897,193     $ 5,436,237  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 535,775     $ 12,834     $ 20,576     $ 775,000     $ 1,344,185  
                                         
Depreciation and Amortization   $ 146,822     $ 187,496     $ 18,371     $ 13,203     $ 365,892  
                                         
Purchases of Long-lived Assets   $ 62,393     $ 11,861     $ 7,994     $ -     $ 82,248  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

January 31, 2026 and October 31, 2025

 

Note 15 – SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Acoustic Sensors and Materials Business (“PAL”)     Defense Engineering Services Business (“Services”)     Corporate     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) Benefit     (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  
                                         
Revenues from Intercompany Sales - eliminated from sales 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 Unaudited Consolidated Financial Statements

January 31, 2026 and October 31, 2025