Quarterly report [Sections 13 or 15(d)]

SEGMENT ANALYSIS

v3.26.3
SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

Note 15 – SEGMENT ANALYSIS

 

The Company operates through three reportable segments: the Marine Technology Business, Acoustics Sensors and Materials Business, and Defense Engineering Services Business (collectively, the “Business Segments”).

 

The Business Segments are managed separately due to differences in their products and services, customer bases, markets served, operational characteristics, and resource requirements. Segment operating income is determined as segment revenue less cost of revenues and directly attributable operating expenses, including research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses. Corporate expenses consist primarily of general corporate administrative costs and are not allocated to the reportable segments.

 

The Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the performance of the Business Segments using segment revenues, operating expenses and operating income prepared in accordance with U.S. GAAP. Segment operating income is the primary measure of segment profit or loss used by the CODM to assess segment performance, allocate resources, evaluate operating trends, assess investment opportunities, and monitor actual results against budgets and forecasts.

 

The revenues presented in this Note 15 represent sales to external customers. Intercompany transactions between reportable segments are eliminated in consolidation and are therefore excluded from consolidated revenues. Supplemental information regarding intercompany sales is presented below for segment reporting purposes.

 

Marine Technology Business (“Products”)

 

The Marine Technology Business develops, manufactures and supplies underwater technologies for commercial and government customers. Its principal products include real-time 3D imaging sonar systems and diving augmented reality technologies through near eye displays for subsea applications.

 

Acoustics Sensors and Materials Business (“PAL”)

 

PAL develops and supplies acoustic sensors, acoustic testing environments and acoustic materials. Its sensor technologies are used in precision ultrasonic measurement applications across a diverse range of markets, including medical, subsea, defense, academic and research institutions.

 

Defense Engineering Services Business (“Services”)

 

The Defense Engineering Services Business consists of two operational units, one located in the United States and one located in the United Kingdom. These operations primarily provide engineering services and proprietary subassemblies to prime defense contractors for integration into larger mission-critical defense systems.

 

The following tables summarize segment asset and operating balances by reportable segment for the three and nine months ended July 31, 2026, and 2025, respectively.

 

The Company’s reportable segments generate revenues from customers located in the following geographic regions:

 

● Americas
     
● Europe
     
● Asia-Pacific (including Australia)
     
● Middle East and Africa

 

Revenue information by geographic region is based on the location of the end customer.

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2026 and October 31, 2025

 

Note 15 - SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Acoustics Sensors and Materials Business (“PAL”)     Defense Engineering Services Business (“Services”)     Corporate     Total  
                               
Three Months Ended July 31, 2026                                        
                                         
Net Revenues   $ 3,377,472     $ 1,610,920     $ 2,729,077      $ -     $ 7,717,469  
                                         
Cost of Revenues     725,321       766,415       1,175,439       -       2,667,175  
                                         
Gross Profit     2,652,151       844,505       1,553,638       -       5,050,294  
                                         
Research & Development     473,749       155,494       99,973       -       729,216  
Selling, General & Administrative     1,328,538       489,162       546,630       423,473       2,787,803  
                                         
Total Operating Expenses     1,802,287       644,656       646,603       423,473       3,517,019  
                                         
Income (Loss) from Operations     849,864       199,849       907,035       (423,473 )     1,533,275  
                                         
Other Income                                        
Other Income     2,902       21,357       -       -       24,259  
Interest Income     146,761       1,213       69,863       15,980       233,817  
                                         
Total Other Income, net     149,663       22,570       69,863       15,980       258,076  
                                         
Income (Loss) before Income Taxes     999,527       222,419       976,898       (407,493 )     1,791,351  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (74,151 )     (10,017 )     (27,478 )     (296,937 )     (408,583 )
Deferred Tax Benefit     -       -       -       6,844       6,844  
                                         
Total Income Tax (Expense)     (74,151 )     (10,017 )     (27,478 )     (290,093 )     (401,739 )
                                         
Net Income (Loss)   $ 925,376     $ 212,402     $ 949,420     $ (697,586 )   $ 1,389,612  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 39,788,972     $ 7,695,001     $ 16,849,840     $ 4,519,553     $ 68,853,366  
                                         
Total Liabilities   $ 2,696,910     $ 1,506,817     $ 1,717,308     $ 201,519     $ 6,122,554  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 1,054,648     $ 36     $ 12,289     $

775,000

     $

1,841,973

  
                                         
Depreciation and Amortization   $ 155,755     $ 186,790     $ 20,965     $ 12,681     $ 376,191  
                                         
Purchases of Long-lived Assets   $ 2,261     $ 13,061     $ 60,532     $ 86,361     $ 162,215  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2026 and October 31, 2025

 

Note 15 – SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Acoustics Sensors and Materials Business (“PAL”)     Defense Engineering Services Business (“Services”)     Corporate     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, net     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 Benefit (Expense)                                        
Current Tax Benefit (Expense)     363       (3,160 )      (46,389 )      (219,600 )      (268,786 ) 
Deferred Tax Benefit     -       -       -       8,022       8,022  
                                         
Total Income Tax Benefit (Expense)     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, 2026 and October 31, 2025

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Acoustics Sensors and Materials Business (“PAL”)     Defense Engineering Services Business (“Services”)     Corporate     Total  
                               
Nine Months Ended July 31, 2026                                        
                                         
Net Revenues   $ 9,572,067     $ 4,720,503     $ 7,039,023     $ -     $ 21,331,593  
                                         
Cost of Revenues     2,208,198       1,997,792       3,130,226       -       7,336,216  
                                         
Gross Profit     7,363,869       2,722,711       3,908,797       -       13,995,377  
                                         
Research & Development     1,326,692       376,070       280,860       -       1,983,622  
Selling, General & Administrative     3,195,464       1,411,414       1,664,620       1,403,936       7,675,434  
                                         
Total Operating Expenses     4,522,156       1,787,484       1,945,480       1,403,936       9,659,056  
                                         
Income (Loss) from Operations     2,841,713       935,227       1,963,317       (1,403,936 )     4,336,321  
                                         
Other Income                                        
Other Income     146,492       50,961       -       -       197,453  
Interest Income     405,843       3,350       124,873       43,936       578,002  
                                         
Total Other Income, net     552,335       54,311       124,873       43,936       775,455  
                                         
Income (Loss) before Income Taxes     3,394,048       989,538       2,088,190       (1,360,000 )     5,111,776  
                                         
Income Tax (Expense) Benefit                                        
Current Tax (Expense)     (202,888 )     (237,999 )     (206,284 )     (456,831 )     (1,104,002 )
Deferred Tax Benefit     -       -       -       10,371       10,371  
                                         
Total Income Tax (Expense)     (202,888 )     (237,999 )     (206,284 )     (446,460 )     (1,093,631 )
                                         
Net Income (Loss)   $ 3,191,160     $ 751,539     $ 1,881,906     $ (1,806,460 )   $ 4,018,145  
                                         
Supplemental Disclosures                                        
                                         
Total Assets   $ 39,788,972     $ 7,695,001     $ 16,849,840     $ 4,519,553     $ 68,853,366  
                                         
Total Liabilities   $ 2,696,910     $ 1,506,817     $ 1,717,308     $ 201,519     $ 6,122,554  
                                         
Revenues from Intercompany Sales - eliminated from sales above   $ 2,582,528     $ 22,045     $ 74,038     $ 2,325,000     $ 5,003,611  
                                         
Depreciation and Amortization   $ 439,171     $ 557,030     $ 57,647     $ 37,905     $ 1,091,753  
                                         
Purchases of Long-lived Assets   $ 95,080     $ 57,464     $ 83,483     $ 129,700     $ 365,727  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2026 and October 31, 2025

 

Note 15 – SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (“Products”)     Acoustics Sensors and Materials Business (“PAL”)     Defense Engineering Services Business (“Services”)     Corporate     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, net     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, 2026 and October 31, 2025