Annual report pursuant to Section 13 and 15(d)

SEGMENT ANALYSIS

v3.22.0.1
SEGMENT ANALYSIS
 12 Months Ended
Oct. 31, 2021
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 12 -SEGMENT ANALYSIS

 

Based on the fundamental difference in the types of offering 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. 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.

 

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 as of and for the years ended October 31, 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

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2021 and 2020

 

NOTE 12 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2021                                
                                 
Revenues from External Customers   $ 15,804,222     $ 5,527,305     $ -     $ 21,331,527  
                                 
Cost of Revenues     3,169,835       3,391,974       -       6,561,809  
                                 
Gross Profit     12,634,387       2,135,331       -       14,769,718  
                                 
Research & Development     2,509,107       473,569       -       2,982,676  
Selling, General & Administrative     3,220,883       2,284,997       2,409,695       7,915,575  
                                 
Total Operating Expenses     5,729,990       2,758,566       2,409,695       10,898,251  
                                 
Income (Loss) from Operations     6,904,397       (623,235 )     (2,409,695 )     3,871,467  
                                 
Other Income (Expense)                                
Other Income     354,373       1,079,374       1,635       1,435,382  
Interest Expense     (12,588 )     (19,668 )     (21,349 )     (53,605 )
                                 
Total Other Income (Expense)     341,785       1,059,706       (19,714 )     1,381,777  
                                 
Income (Loss) before Income Taxes     7,246,182       436,471     (2,429,409 )     5,253,244  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit (Expense)     35,032       (51,624 )      -     (16,592 )
Deferred Tax (Expense) Benefit     (418,338 )     409,205       (279,754 )     (288,887 )
                                 
Total Income Tax (Expense) Benefit     (383,306 )     357,581       (279,754 )     (305,479 )
                                 
Net Income (Loss)   $ 6,862,876     $ 794,052     $ (2,709,163 )   $ 4,947,765  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 30,631,442     $ 14,117,747     $ 716,230     $ 45,465,419  
                                 
Total Liabilities   $ 3,166,999     $ 849,306     $ 400,041     $ 4,416,346  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 2,075,387     $ 355,608     $ 3,470,000     $ 5,900,995  
                                 
Depreciation and Amortization   $ 780,434     $ 114,022     $ 29,617     $ 924,073  
                                 
Purchases of Long-lived Assets   $ 793,995     $ 51,907     $ 118,302     $ 964,204  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2021 and 2020

 

NOTE 12 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2020                                
                                 
Revenues from External Customers   $ 11,278,181     $ 8,765,629     $ -     $ 20,043,810  
                                 
Cost of Revenues     2,254,008       5,060,354       -       7,314,362  
                                 
Gross Profit     9,024,173       3,705,275       -       12,729,448  
                                 
Research & Development     1,955,364       1,042,243       190,782       3,188,389  
Selling, General & Administrative     2,779,662       2,260,849       1,696,783       6,737,294  
                                 
Total Operating Expenses     4,735,026       3,303,092       1,887,565       9,925,683  
                                 
Income (Loss) from Operations     4,289,147       402,183       (1,887,565 )     2,803,765  
                                 
Other Income (Expense)                                
Other Income     141,511       526,734       -       668,245  
Interest (Expense)     (10,612 )     (15,672 )     (43,919 )     (70,203 )
                                 
Total Other Income (Expense)     130,899       511,062       (43,919 )     598,042  
                                 
Income (Loss) before Income Taxes     4,420,046       913,245       (1,931,484 )     3,401,807  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit (Expense)     63,590       -       (12,927 )     50,663  
Deferred Tax (Expense) Benefit     (196,664 )     273,666       (185,887 )     (108,885 )
                                 
Total Income Tax (Expense) Benefit     (133,074 )     273,666       (198,814 )     (58,222 )
                                 
Net Income (Loss)   $ 4,286,972     $ 1,186,911     $ (2,130,298 )   $ 3,343,585  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 22,200,123     $ 14,347,827     $ 1,491,201     $ 38,039,151  
                                 
Total Liabilities   $ 1,572,314     $ 1,321,011     $ 749,558     $ 3,642,883  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 997,150     $ 354,373     $ 2,700,000     $ 4,051,523  
                                 
Depreciation and Amortization   $ 678,449     $ 105,775     $ 22,462     $ 806,686  
                                 
Purchases of Long-lived Assets   $ 811,352     $ 19,660     $ 167,323     $ 998,335  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2021 and 2020