SEGMENT ANALYSIS |
NOTE
14 -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 cost of revenue 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, 2023
and 2022, 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, 2023 and 2022
SCHEDULE OF SEGMENT REPORTING INFORMATION
|
|
Marine
Technology Business (Products) |
|
|
Marine
Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended October 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenues |
|
$ |
12,119,066 |
|
|
$ |
7,233,022 |
|
|
$ |
- |
|
|
$ |
19,352,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of Revenues |
|
|
2,819,796 |
|
|
|
3,501,237 |
|
|
|
- |
|
|
|
6,321,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
|
9,299,270 |
|
|
|
3,731,785 |
|
|
|
- |
|
|
|
13,031,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
& Development |
|
|
2,043,890 |
|
|
|
52,577 |
|
|
|
- |
|
|
|
2,096,467 |
|
Selling,
General & Administrative |
|
|
3,109,566 |
|
|
|
2,463,087 |
|
|
|
2,622,383 |
|
|
|
8,195,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses |
|
|
5,153,456 |
|
|
|
2,515,664 |
|
|
|
2,622,383 |
|
|
|
10,291,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) from Operations |
|
|
4,145,814 |
|
|
|
1,216,121 |
|
|
|
(2,622,383 |
) |
|
|
2,739,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income |
|
|
39,146 |
|
|
|
-
|
|
|
|
- |
|
|
|
39,146 |
|
Interest
Income |
|
|
544,892 |
|
|
|
97,638 |
|
|
|
- |
|
|
|
642,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Other Income (Expense) |
|
|
584,038 |
|
|
|
97,638 |
|
|
|
- |
|
|
|
681,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Tax (Expense) Benefit |
|
|
(272,126 |
) |
|
|
(78,876 |
) |
|
|
102,347 |
|
|
|
(248,655 |
) |
Deferred
Tax (Expense) Benefit |
|
|
(115,954 |
) |
|
|
54,382 |
|
|
|
13,148 |
|
|
|
(48,424 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Income Tax (Expense) Benefit |
|
|
(388,080 |
) |
|
|
(24,494 |
) |
|
|
115,495 |
|
|
|
(297,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income (Loss) |
|
$ |
4,341,772 |
|
|
$ |
1,289,265 |
|
|
$ |
(2,506,889 |
) |
|
$ |
3,124,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
$ |
36,969,673 |
|
|
$ |
13,604,262 |
|
|
$ |
1,267,581 |
|
|
$ |
51,841,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
$ |
2,263,761 |
|
|
$ |
732,582 |
|
|
$ |
416,407 |
|
|
$ |
3,412,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
from Intercompany Sales - eliminated from sales above |
|
$ |
4,602,741 |
|
|
$ |
584,622 |
|
|
$ |
1,200,000 |
|
|
$ |
6,387,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and Amortization |
|
$ |
523,339 |
|
|
$ |
100,689 |
|
|
$ |
43,502 |
|
|
$ |
667,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
of Long-lived Assets |
|
$ |
1,996,544 |
|
|
$ |
25,404 |
|
|
$ |
108,392 |
|
|
$ |
2,130,340 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
October
31, 2023 and 2022
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
$ |
14,724,688 |
|
|
$ |
7,501,115 |
|
|
|
- |
|
|
$ |
22,225,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
2,941,569 |
|
|
|
4,093,546 |
|
|
|
- |
|
|
|
7,035,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
11,783,119 |
|
|
|
3,407,569 |
|
|
|
- |
|
|
|
15,190,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
2,207,500 |
|
|
|
30,420 |
|
|
|
- |
|
|
|
2,237,920 |
|
Selling, General & Administrative |
|
|
2,563,554 |
|
|
|
2,654,565 |
|
|
|
2,730,585 |
|
|
|
7,948,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
4,771,054 |
|
|
|
2,684,985 |
|
|
|
2,730,585 |
|
|
|
10,186,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
7,012,065 |
|
|
|
722,584 |
|
|
|
(2,730,585 |
) |
|
|
5,004,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
55,715 |
|
|
|
79,204 |
|
|
|
3,056 |
|
|
|
137,975 |
|
Interest Expense |
|
|
(9,233 |
) |
|
|
(71 |
) |
|
|
(400 |
) |
|
|
(9,704 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
46,482 |
|
|
|
79,133 |
|
|
|
2,656 |
|
|
|
128,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax Benefit (Expense) |
|
|
(868,162 |
) |
|
|
39,422 |
|
|
|
(176,400 |
) |
|
|
(1,005,140 |
) |
Deferred Tax (Expense) Benefit |
|
|
31,907 |
|
|
|
(41,657 |
) |
|
|
183,776 |
|
|
|
174,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Income Tax (Expense) Benefit |
|
|
(836,255 |
) |
|
|
(2,235 |
) |
|
|
7,376 |
|
|
|
(831,114 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
6,222,292 |
|
|
$ |
799,482 |
|
|
$ |
(2,720,553 |
) |
|
$ |
4,301,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
33,348,805 |
|
|
$ |
12,662,109 |
|
|
$ |
916,544 |
|
|
$ |
46,927,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
$ |
2,432,750 |
|
|
$ |
526,195 |
|
|
$ |
585,704 |
|
|
$ |
3,544,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
$ |
2,406,717 |
|
|
$ |
396,015 |
|
|
$ |
2,720,000 |
|
|
$ |
5,522,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
$ |
602,583 |
|
|
$ |
96,776 |
|
|
$ |
39,370 |
|
|
$ |
738,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
$ |
1,123,475 |
|
|
$ |
36,862 |
|
|
$ |
90,887 |
|
|
$ |
1,251,224 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
October
31, 2023 and 2022
|