Quarterly report pursuant to Section 13 or 15(d)

Segment Analysis

v3.21.1
Segment Analysis
 6 Months Ended
Apr. 30, 2021
Segment Reporting [Abstract]  
Segment Analysis

NOTE 14 -SEGMENT ANALYSIS

 

Based on the fundamental difference between the types of our offerings, products versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Segment”) operations are comprised primarily of sale of underwater technology sonar solutions, products for underwater operations including hardware and software; and rental of solutions and products to the underwater market along with associated support services. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provides engineering services primarily as sub-contractors to prime defense contractors.

 

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

 

The Company evaluates performance and allocates resources based upon segment 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 disclosed in the tables below for informational purposes, but which have been eliminated in our financial statements.

 

The following table summarizes segment asset and operating balances by reportable segment as of and for the three and six months ended April 30, 2021 and 2020, respectively.

 

The Company’s reportable business segments sell their goods and services in four geographic locations:

 

● Americas
   
● Europe
   
● Australia/Asia
   
● Middle East/Africa

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended April 30, 2021                                
                                 
Revenues from External Customers   $ 4,184,409     $ 1,188,667     $ -     $ 5,373,076  
                                 
Cost of Revenues     1,022,701       600,771       -       1,623,472  
                                 
Gross Profit     3,161,708       587,896       -       3,749,604  
                                 
Research & Development     538,878       106,403       -       645,281  
Selling, General & Administrative     800,622       552,067       427,312       1,780,001  
                                 
Total Operating Expenses     1,339,500       658,470       427,312       2,425,282  
                                 
Income (Loss) from Operations     1,822,208       (70,574 )     (427,312 )     1,324,322  
                                 
Other (Expense) Income                                
Other Income     68,583       16       846       69,445  
Funding from Paycheck Protection Program     122,327       436,574       -       558,901  
Interest Expense     (3,518 )     (4,544 )     (5,579 )     (13,641 )
                                 
Total Other Income (Expense)     187,392       432,046       (4,733 )     614,705  
                                 
Net Income (Loss) before Income Taxes     2,009,600       361,472       (432,045 )     1,939,027  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit     72,292       237,670       -       309,962  
Deferred Tax (Expense)     (102,585 )     112,550       (51,021 )     (41,056 )
                                 
Total Income Tax (Expense) Benefit     (30,293 )     350,220       (51,021 )     268,906  
                                 
Net Income (Loss)   $ 1,979,307     $ 711,692     $ (483,066 )   $ 2,207,933  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 27,086,894     $ 14,667,654     $ 966,418     $ 42,720,966  
                                 
Total Liabilities   $ 1,839,295     $ 1,027,958     $ 586,739     $ 3,453,992  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 504,411     $ 90,443     $ 675,000     $ 1,269,854  
                                 
Depreciation and Amortization   $ 200,536     $ 26,436     $ 6,709     $ 233,681  
                                 
(Sales) Purchases of Long-lived Assets   $ 144,232     $ 1,371     $ 44,442     $ 190,045  

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended April 30, 2020                                
                                 
Revenues from External Customers   $ 1,691,199     $ 1,598,019     $ -     $ 3,289,218  
                                 
Cost of Revenues     406,853       956,951       -       1,363,804  
                                 
Gross Profit     1,284,346       641,068       -       1,925,414  
                                 
Research & Development     442,696       270,945       -       713,641  
Selling, General & Administrative     692,177       527,039       313,994       1,533,210  
                                 
Total Operating Expenses     1,134,873       797,984       313,994       2,246,851  
                                 
Income (Loss) from Operations     149,473       (156,916 )     (313,994 )     (321,437 )
                                 
Other Income (Expense)                                
Other (Expense) Income     (327 )     16       -       (311 )
Interest Expense     (2,395 )     (3,959 )     (12,102 )     (18,456 )
                                 
Total Other (Expense)     (2,722 )     (3,943 )     (12,102 )     (18,767 )
                                 
Net Income (Loss) before Income Taxes     146,751       (160,859 )     (326,096 )     (340,204 )
                                 
Current Tax (Expense) Benefit     (6,397 )     (4,045 )     45,268       34,826  
Deferred Tax (Expense) Benefit     (1,354 )     142,793       (101,141 )     40,298  
                                 
Total Income Tax (Expense) Benefit     (7,751 )     138,748       (55,873 )     75,124  
                                 
Net Income (Loss)   $ 139,000     $ (22,111 )   $ (381,969 )   $ (265,080 )
                                 
Supplemental Disclosures                                
                                 
                                 
Total Assets   $ 21,256,131     $ 14,231,702     $ 1,050,834     $ 36,538,667  
                                 
Total Liabilities   $ 2,907,719     $ 1,380,925     $ 921,492     $ 5,210,136  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 277,658     $ 4,687     $ 675,000     $ 957,345  
                                 
Depreciation and Amortization   $ 94,599     $ 2,745     $ 4,112     $ 101,456  
                                 
(Sales) Purchases of Long-lived Assets   $ (158,874 )   $ (8,441 )   $ 14,554     $ (152,761 )

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Six Months Ended April 30, 2021                                
                                 
Revenues from External Customers   $ 7,932,688     $ 2,490,847     $ -     $ 10,423,535  
                                 
Cost of Revenues     1,916,976       1,442,033       -       3,359,009  
                                 
Gross Profit     6,015,712       1,048,814       -       7,064,526  
                                 
Research & Development     980,622       247,798       -       1,228,420  
Selling, General & Administrative     1,534,447       1,119,626       939,294       3,593,367  
                                 
Total Operating Expenses     2,515,069       1,367,424       939,294       4,821,787  
                                 
Income (Loss) from Operations     3,500,643       (318,610 )     (939,294 )     2,242,739  
                                 
Other Income (Expense)                                
Other Income     70,619       34       846       71,499  
Funding from Paycheck Protection Program     122,327       526,545       -       648,872  
Interest Expense     (5,771 )     (9,695 )     (12,689 )     (28,155 )
                                 
Total Other Income (Expense)     187,175       516,884       (11,843 )     692,216  
                                 
Net Income (Loss) before Income Taxes     3,687,818       198,274       (951,137 )     2,934,955  
                                 
Income Tax Benefit (Expense)                                
Current Tax Benefit     84,945       237,670       12,072       334,687  
Deferred Tax (Expense) Benefit     (113,740 )     264,636       (83,761 )     67,135  
                                 
Total Income Tax Benefit (Expense)     (28,795 )     502,306       (71,689 )     401,822  
                                 
Net Income (Loss)   $ 3,659,023     $ 700,580     $ (1,022,826 )   $ 3,336,777  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 27,086,894     $ 14,667,654     $ 966,418     $ 42,720,966  
                                 
Total Liabilities   $ 1,839,295     $ 1,027,958     $ 586,739     $ 3,453,992  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 875,040     $ 139,644     $ 1,350,000     $ 2,364,684  
                                 
Depreciation and Amortization   $ 512,658     $ 74,081     $ 13,125     $ 599,864  
                                 
Purchases of Long-lived Assets   $ 544,207     $ 5,548     $ 49,434     $ 599,189  

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Six Months Ended April 30, 2020                                
                                 
Revenues from External Customers   $ 5,324,011     $ 4,646,186     $ -     $ 9,970,197  
                                 
Cost of Revenues     1,062,530       2,707,813       -       3,770,343  
                                 
Gross Profit     4,261,481       1,938,373       -       6,199,854  
                                 
Research & Development     999,425       477,383       165,098       1,641,906  
Selling, General & Administrative     1,560,175       1,163,335       701,378       3,424,888  
                                 
Total Operating Expenses     2,559,600       1,640,718       866,476       5,066,794  
                                 
Income (Loss) from Operations     1,701,881       297,655       (866,476 )     1,133,060  
                                 
Other Income (Expense)                                
Other Income     12,497       16       -       12,513  
Interest (Expense)     (5,627 )     (7,641 )     (24,802 )     (38,070 )
                                 
Total Other Income (Expense)     6,870       (7,625 )     (24,802 )     (25,557 )
                                 
Net Income (Loss) before Income Taxes     1,708,751       290,030       (891,278 )     1,107,503  
                                 
Current Tax Benefit (Expense)     19,436       -       (7,957 )     11,479  
Deferred Tax Benefit (Expense)     (79,493 )     130,558       (88,354 )     (37,289 )
                                 
Total Income Tax Benefit (Expense)     (60,057 )     130,558       (96,311 )     (25,810 )
                                 
Net Income (Loss)   $ 1,648,694     $ 420,588     $ (987,589 )   $ 1,081,693  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 21,256,131     $ 14,231,702     $ 1,050,834     $ 36,538,667  
                                 
Total Liabilities   $ 2,907,719     $ 1,380,925     $ 921,492     $ 5,210,136  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 580,480     $ 105,216     $ 1,350,000     $ 2,035,696  
                                 
Depreciation and Amortization   $ 277,592     $ 46,425     $ 9,403     $ 333,420  
                                 
Purchases of Long-lived Assets   $ 440,727     $ 1,152     $ 48,519     $ 490,398  

 

    For the Three Months Ended April 30, 2021  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
                         
Primary Geographical Markets                        
Americas   $ 914,529     $ 597,463     $ 1,511,992  
Europe     1,665,643       591,204       2,256,847  
Australia/Asia     1,487,023       -       1,487,023  
Middle East/Africa     117,214       -       117,214  
                         
Total Revenues   $ 4,184,409     $ 1,188,667     $ 5,373,076  
                         
Major Goods/Service Lines                        
Equipment Sales   $ 3,090,462     $ 93,505     $ 3,183,967  
Equipment Rentals     598,190       -       598,190  
Software Sales     221,053       -       221,053  
Engineering Parts     -       778,369       778,369  
Services     274,704       316,792       591,496  
                         
Total Revenues   $ 4,184,409     $ 1,188,667     $ 5,373,076  
                         
Goods transferred at a point in time   $ 3,311,515     $ 93,505     $ 3,405,020  
Services transferred over time     872,894       1,095,162       1,968,056  
                         
Total Revenues   $ 4,184,409     $ 1,188,667     $ 5,373,076  

 

    For the Three Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
                         
Primary Geographical Markets                        
Americas   $ 513,638     $ 1,010,109     $ 1,523,747  
Europe     519,990       587,910       1,107,900  
Australia/Asia     620,386       -       620,386  
Middle East/Africa     37,185       -       37,185  
                         
Total Revenues   $ 1,691,199     $ 1,598,019     $ 3,289,218  
                         
Major Goods/Service Lines                        
Equipment Sales     513,638     $ -     $ 513,638  
Equipment Rentals     519,990       -       519,990  
Software Sales     620,386       -       620,386  
Engineering Parts     37,185       1,435,134       1,472,319  
Services     -       162,885       162,885  
                         
Total Revenues   $ 1,691,199     $ 1,598,019     $ 3,289,218  
                         
Goods transferred at a point in time   $ 377,411     $ -     $ 377,411  
Services transferred over time     1,313,788       1,598,019       2,911,807  
                         
Total Revenues   $ 1,691,199     $ 1,598,019     $ 3,289,218  

 

    For the Six Months Ended April 30, 2021  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
                         
Primary Geographical Markets                        
Americas   $ 1,463,807     $ 1,113,904     $ 2,577,711  
Europe     2,790,755       1,376,943       4,167,698  
Australia/Asia     3,495,233       -       3,495,233  
Middle East/Africa     182,893       -       182,893  
                         
Total Revenues   $ 7,932,688     $ 2,490,847     $ 10,423,535  
                         
Major Goods/Service Lines                        
Equipment Sales   $ 5,883,949     $ 314,462     $ 6,198,411  
Equipment Rentals     932,553       -       932,553  
Software Sales     446,275       -       446,275  
Engineering Parts     213,956       1,634,716       1,848,672  
Services     455,955       541,668       997,623  
                         
Total Revenues   $ 7,932,688     $ 2,490,847     $ 10,423,535  
                         
Goods transferred at a point in time   $ 6,367,552     $ 314,462     $ 6,682,014  
Services transferred over time     1,565,136       2,176,385       3,741,521  
                         
Total Revenues   $ 7,932,688     $ 2,490,847     $ 10,423,535  

 

    For the Six Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
                         
Primary Geographical Markets                        
Americas   $ 1,054,970     $ 3,146,013     $ 4,200,983  
Europe     1,139,007       1,500,173       2,639,180  
Australia/Asia     3,041,746       -       3,041,746  
Middle East/Africa     88,288       -       88,288  
                         
Total Revenues   $ 5,324,011     $ 4,646,186     $ 9,970,197  
                         
Major Goods/Service Lines                        
Equipment Sales   $ 3,205,777     $ -     $ 3,205,777  
Equipment Rentals     828,564       -       828,564  
Software Sales     245,521       -       245,521  
Engineering Parts     -       3,988,363       3,988,363  
Services     1,044,149       657,823       1,701,972  
                         
Total Revenues   $ 5,324,011     $ 4,646,186     $ 9,970,197  
                         
Goods transferred at a point in time   $ 3,319,289     $ -     $ 3,319,289  
Services transferred over time     2,004,722       4,646,186       6,650,908  
                         
Total Revenues   $ 5,324,011     $ 4,646,186     $ 9,970,197