Note 7 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS

Interest-Bearing Deposit Accounts for the period ended July 31, 2026, and 2025:

The Company maintains interest-bearing certificate of deposit accounts with HSBC Bank USA, N.A. These deposits have fixed and rolling maturities of three months or less and are classified as cash equivalents in the accompanying consolidated financial statements.

In addition, the Company maintains interest-bearing deposit accounts with HSBC UK. Funds held in these accounts are unrestricted and earn interest at a variable rate equal to 0.25% below the Bank of England base rate. At July 31, 2026, the applicable interest rate on this account was 3.50%.

The table below presents the balances held in certificate of deposit and unrestricted interest-bearing accounts as of July 31, 2026 and 2025, together with the interest income earned during the respective nine-month periods then ended.

 SCHEDULE OF INTEREST RATES AND AMOUNT HELD IN CERTIFIED DEPOSIT AND INTEREST BEARING ACCOUNTS

Inventory consisted of the following as of:

 SCHEDULE OF COMPONENTS OF INVENTORY

Other current assets consisted of the following as of:

 SUMMARY OF OTHER CURRENT ASSETS

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2026 and October 31, 2025

Note 7 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS (Continued)

Fixed Assets consisted of the following as of:

 SCHEDULE OF FIXED ASSETS

Depreciation expense for the three months ended July 31, 2026, and 2025 was $227,701 and $232,036, respectively, and for the nine months ended July 31, 2026, and 2025 was $646,311 and $642,801, respectively.

Property and equipment, net, by geographic areas were as follows:

 SCHEDULE OF PROPERTY AND EQUIPMENT, NET, BY GEOGRAPHIC AREAS

Accrued Expenses and Other Current Liabilities consisted of the following as of:

 SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Total Other Income, consisted of the following:

 SCHEDULE OF OTHER INCOME