Quarterly report pursuant to Section 13 or 15(d)

Segment Analysis

v3.7.0.1
Segment Analysis
 6 Months Ended
Apr. 30, 2017
Segment Reporting [Abstract]  
Segment Analysis

NOTE 13 – SEGMENT ANALYSIS

 

We are operating in two reportable segments, which are managed separately based upon fundamental differences in their operations. Coda Octopus Martech and Coda Octopus Colmek operate as contractors, and the balance of our operations are comprised of product sales.

 

Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs.

 

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies.

 

There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes.

 

The following table summarizes segment asset and operating balances by reportable segment for the three months and six months ended April 30, 2017 and 2016 respectively.

 

The Company’s reportable business segments operate in three geographic locations. Those geographic locations are:

 

* United States

* Europe

* Australia

 

Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the three and six months ended April 30, 2017 and 2016 respectively:

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
Three Months Ended April 30, 2017                                
                                 
Revenues from External Customers   $ 3,299,545     $ 1,979,213     $ -     $ 5,278,758  
                                 
Cost of Revenues     968,908       1,045,032       -       2,013,940  
                                 
Gross Profit     2,330,638       934,181       -       3,264,818  
                                 
Research & Development     247,758       -       -       247,758  
Selling, General & Administrative     830,121       655,560       154,211       1,639,892  
                                 
Operating Income (Loss)     1,252,758       278,621       (154,211 )     1,377,168  
                                 
Other Income (Expense)                                
                                 
Other Income     86,643       -       -       86,643  
Interest Expense     (181,806 )     (75,002 )     67,961       (188,847 )
                                 
Total other income (expense)     (95,163 )     (75,002 )     67,961       (102,204 )
                                 
Income before income taxes     1,157,595       203,619       (86,250 )     1,274,964  
                                 
Income tax benefit (expense)     -       -       -       -  
                                 
Net Income   $ 1,157,595     $ 203,620     $ (86,249 )   $ 1,274,964  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 12,119,417     $ 12,616,569     $ 422,059     $ 25,158,045  
                                 
Total Liabilities     1,223,741       1,654,104       8,600,374       11,478,219  
                                 
Revenues from Intercompany Sales - eliminated from sales above     505,660       170,056       118,875       794,591  
                                 
Depreciation and Amortization     145,800       71,056       3,106       219,962  
                                 
Purchases of Long-lived Assets     643,603       26,852       -       670,455  

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
Three Months Ended April 30, 2016                                
                                 
Revenues from External Customers   $ 2,397,476     $ 3,348,499     $ -     $ 5,745,975  
                                 
Cost of Revenues     707,906       1,528,945       -       2,236,851  
                                 
Gross Profit     1,689,570       1,819,554       -       3,509,124  
                                 
Research & Development     186,991       -       -       186,991  
Selling, General & Administrative     737,049       785,557       80,948       1,603,554  
                                 
Operating Income (Loss)     765,530       1,033,997       (80,948 )     1,718,579  
                                 
Other Income (Expense)                                
                                 
Other Income     33,847       (77 )     -       33,770  
Interest Expense     (113,891 )     (56,490 )     565       (169,816 )
                                 
Total other income (expense)     (80,044 )     (56,567 )     565       (136,046 )
                                 
Income (Loss) before income taxes     685,486       977,430       (80,383 )     1,582,533  
                                 
Income tax benefit (expense)     -       -       -       -  
                                 
Net Income (Loss)   $ 685,486     $ 977,430     $ (80,383 )   $ 1,582,533  
Supplemental Disclosures                                
                                 
Total Assets   $ 12,659,049     $ 10,000,625     $ 207,752     $ 22,867,426  
                                 
Total Liabilities     1,375,795       830,979       11,745,611       13,952,385  
                                 
Revenues from Intercompany Sales - eliminated from sales above     222,010       70,405       118,875       411,290  
                                 
Depreciation and Amortization     41,178       83,365       3,078       127,621  
                                 
Purchases of Long-lived Assets     873,269       (10,175 )     8,868       871,962  

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
Six Months Ended April 30, 2017                                
                                 
Revenues from External Customers   $ 5,750,144     $ 4,886,817     $ -     $ 10,636,961  
                                 
Cost of Revenues     1,698,926       2,298,059       -       3,996,985  
                                 
Gross Profit     4,051,218       2,588,758       -       6,639,976  
                                 
Research & Development     498,988       -       -       498,988  
Selling, General & Administrative     1,404,770       1,341,971       299,039       3,045,780  
                                 
Operating Income (Loss)     2,147,460       1,246,787       (299,039 )     3,095,208  
                                 
Other Income (Expense)                                
                                 
Other Income     136,059       -       -       136,059  
Interest (Expense) Income     (532,141 )     (199,223 )     347,023       (384,341 )
                                 
Total other income (expense)     (396,082 )     (199,223 )     347,023       (248,282 )
                                 
Income (Loss) before income taxes     1,751,378       1,047,564       47,984       2,846,926  
                                 
Income tax benefit (expense)     -       -       -       -  
                                 
Net Income   $ 1,751,378     $ 1,047,564     $ 47,984     $ 2,846,926  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 12,119,417     $ 12,616,569     $ 422,059     $ 25,158,045  
                                 
Total Liabilities     1,223,741       1,654,104       8,600,374       11,478,219  
                                 
Revenues from Intercompany Sales - eliminated from sales above     678,513       229,955       237,750       1,146,218  
                                 
Depreciation and Amortization     247,263       142,781       6,317       396,361  
                                 
Purchases of Long-lived Assets     2,289,063       49,033       12,470       2,350,566  

 

   

Marine

Technology

Business

(Products)

    

Marine

Engineering

Business

(Services)

     Overhead     Total  
                         
For Six Months Ended April 30, 2016                                
                                 
Revenues from External Customers   $ 5,389,099     $ 5,132,715     $ -     $ 10,521,814  
                                 
Cost of Revenues     2,068,408       2,709,592       -       4,778,000  
                                 
Gross Profit     3,320,691       2,423,123       -       5,743,814  
                                 
Research & Development     415,291       -       -       415,291  
Selling, General & Administrative     1,389,535       1,570,879       202,679       3,163,093  
                                 
Operating Income (Loss)     1,515,865       852,244       (202,679 )     2,165,430  
                                 
Other Income (Expense)                                
                                 
Other Income     99,764       5,898       -       105,662  
Interest Expense     (285,077 )     (113,818 )     (143 )     (399,038 )
                                 
Total other income (expense)     (185,313 )     (107,920 )     (143 )     (293,376 )
                                 
Income (Loss) before income taxes     1,330,552       744,324       (202,822 )     1,872,054  
                                 
Income tax benefit (expense)     -       -       -       -  
                                 
Net Income (Loss)   $ 1,330,552     $ 744,324     $ (202,822 )   $ 1,872,054  
Supplemental Disclosures                                
                                 
Total Assets   $ 12,659,049     $ 10,000,625     $ 207,752     $ 22,867,426  
                                 
Total Liabilities     1,375,795       830,979       11,745,611       13,952,385  
                                 
Revenues from Intercompany Sales - eliminated from sales above     356,402       241,353       244,000       841,755  
                                 
Depreciation and Amortization     125,635       174,719       6,432       306,786  
                                 
Purchases of Long-lived Assets     719,307       21,798       8,868       749,973  

 

    USA     Europe     Australia     Total  
                         
External Revenues by Geographic Locations                                
                                 
Three Months Ended April 30, 2017   $ 2,525,908     $ 2,614,897     $ 137,953     $ 5,278,758  
                                 
Three Months Ended April 30, 2016   $ 3,291,480     $ 2,176,818     $ 277,677     $ 5,745,975  
                                 
Six Months Ended April 30, 2017   $ 5,275,675     $ 4,631,934     $ 729,352     $ 10,636,961  
                                 
Six Months Ended April 30, 2016   $ 4,955,901     $ 4,763,447     $ 802,466     $ 10,521,814