Quarterly report [Sections 13 or 15(d)]

SEGMENT ANALYSIS

v3.26.1
SEGMENT ANALYSIS
 6 Months Ended
Apr. 30, 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 the “Business Segments”).

 

These Business Segments are managed separately based upon fundamental differences in their operations, market segments and resource allocation. 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. The CODM evaluates the operating results and performance of all Business Segments using GAAP reporting for revenue, expenses, and net income by segment. This financial information is used to assess operating trends, perform analytical comparisons, benchmark performance between periods and across geographic regions, make investment decisions, and 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 that have been made externally. Inter-company sales between our reportable segments are eliminated from our consolidated income statement. For segment reporting purposes, we have, however, included in the Supplemental Disclosures 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 receives most of our resource allocation. It is a supplier of various underwater technologies, including new generation real time 3D imaging sensors and augmented reality diving technologies to the subsea market.

 

● Acoustic Sensors and Materials Business (“PAL”)

 

PAL is a supplier of acoustic sensors, acoustics tests environments, and acoustics materials. PAL’s sensors are primarily used for precision ultrasonic measurement, serving a broad range of markets including 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 U.S.- based and the other U.K.- based. They operate primarily as subcontractors to prime defense contractors providing engineering services and supplying proprietary sub-assemblies that typically form part of larger mission critical defense systems.

 

The following tables summarize segment asset and operating balances by reportable segment for the three and six months ended April 30, 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

April 30, 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 April 30, 2026                                        
                                         
Net Revenues   $ 2,839,592     $ 1,525,824     $ 2,538,596     $ -     $ 6,904,012  
                                         
Cost of Revenues     654,497       706,200       965,266       -       2,325,963  
                                         
Gross Profit     2,185,095       819,624       1,573,330       -       4,578,049  
                                         
Research & Development     456,067       110,567       81,670       -       648,304  
Selling, General & Administrative     785,292       429,144       546,478       375,855       2,136,769  
                                         
Total Operating Expenses     1,241,359       539,711       628,148       375,855       2,785,073  
                                         
Income (Loss) from Operations     943,736       279,913       945,182       (375,855 )     1,792,976  
                                         
Other Income                                        
Other Income     139,160       29,601       -       -       168,761  
Interest Income     133,657       891       32,205       5,162       171,915  
                                         
Total Other Income, net     272,817       30,492       32,205       5,162       340,676  
                                         
Income (Loss) before Income Taxes     1,216,553       310,405       977,387       (370,693 )     2,133,652  
                                         
Income Tax (Expense) Benefit                                        
Current Tax Benefit (Expense)     39,814       (123,260 )     (148,826 )     (199,931 )     (432,203 )
Deferred Tax (Expense)     -       -       -       (3,639 )     (3,639 )
                                         
Total Income Tax Benefit (Expense)     39,814       (123,260 )     (148,826 )     (203,570 )     (435,842 )
                                         
Net Income (Loss)   $ 1,256,367     $ 187,145     $ 828,561     $ (574,263 )   $ 1,697,810  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 39,029,688     $ 7,862,369     $ 16,054,543     $ 4,392,180     $ 67,338,780  
                                         
Total Liabilities   $ 2,248,580     $ 1,884,988     $ 1,686,912     $ 104,068     $ 5,924,548  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 992,105     $ 9,175     $ 41,173     $ 775,000     $ 1,817,453  
                                         
Depreciation and Amortization   $ 136,594     $ 182,744     $ 18,311     $ 12,021     $ 349,670  
                                         
Purchases of Long-lived Assets   $ 30,427     $ 32,542     $ 14,957     $ 43,339     $ 121,265  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 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 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)                                        
Current Tax (Expense)     (32,658 )     (167,083 )     -       (174,960 )     (374,701 )
Deferred Tax Benefit     -       -       -       17,853       17,853  
                                         
Total Income Tax (Expense)     (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, 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  
                               
Six Months Ended April 30, 2026                                        
                                         
Net Revenues   $ 6,194,595     $ 3,109,583     $ 4,309,946     $ -     $ 13,614,124  
                                         
Cost of Revenues     1,482,877       1,231,377       1,954,787       -       4,669,041  
                                         
Gross Profit     4,711,718       1,878,206       2,355,159       -       8,945,083  
                                         
Research & Development     852,943       220,576       180,887       -       1,254,406  
Selling, General & Administrative     1,866,926       922,252       1,117,990       980,463       4,887,631  
                                         
Total Operating Expenses     2,719,869       1,142,828       1,298,877       980,463       6,142,037  
                                         
Income (Loss) from Operations     1,991,849       735,378       1,056,282       (980,463 )     2,803,046  
                                         
Other Income                                        
Other Income     143,590       29,604       -       -       173,194  
Interest Income     259,082       2,137       55,010       27,956       344,185  
                                         
Total Other Income, net     402,672       31,741       55,010       27,956       517,379  
                                         
Income (Loss) before Income Taxes     2,394,521       767,119       1,111,292       (952,507 )     3,320,425  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (128,737 )     (227,982 )     (178,806 )     (159,894 )     (695,419 )
Deferred Tax Benefit     -       -       -       3,527       3,527  
                                         
Total Income Tax (Expense)     (128,737 )     (227,982 )     (178,806 )     (156,367 )     (691,892 )
                                         
Net Income (Loss)   $ 2,265,784     $ 539,137     $ 932,486     $ (1,108,874 )   $ 2,628,533  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 39,029,688     $ 7,862,369     $ 16,054,543     $ 4,392,180     $ 67,338,780  
                                         
Total Liabilities   $ 2,248,580     $ 1,884,988     $ 1,686,912     $ 104,068     $ 5,924,548  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 1,527,880     $ 22,009     $ 61,749     $ 1,550,000     $ 3,161,638  
                                         
Depreciation and Amortization   $ 283,416     $ 370,240     $ 36,682     $ 25,224     $ 715,562  
                                         
Purchases of Long-lived Assets   $ 92,820     $ 44,403     $ 22,951     $ 43,339     $ 203,513  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 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  
                               
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) Benefit     (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 Intercompany 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, 2026 and October 31, 2025