Annual report pursuant to Section 13 and 15(d)

Segment Analysis

v3.8.0.1
Segment Analysis
 12 Months Ended
Oct. 31, 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 years ended October 31, 2017 and 2016, respectively.

 

The Company’s reportable business segments operate in three geographic locations, as follows:

 

* United States

 

* Europe

 

* Australia

 

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 removed upon consolidation and for the purposes of the information shown below.

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2017                                
                                 
Revenues from External Customers   $ 10,986,268     $ 7,038,905     $ -     $ 18,025,173  
                                 
Cost of Revenues     2,246,881       3,810,567       -       6,057,448  
                                 
Gross Profit     8,739,387       3,228,338       -       11,967,725  
                                 
Research & Development     919,863       460,518       -       1,380,381  
Selling, General & Administrative     3,220,635       2,714,054       834,638       6,769,327  
                                 
Total Operating Expenses     4,140,498       3,174,572       834,638       8,149,708  
                                 
Operating Income (Loss)     4,598,889       53,766       (834,638 )     3,818,017  
                                 
Other Income (Expense)                                
                                 
Other Income     117,106       4,172       -       121,278  
Interest (Expense) Income     (709,763 )     (56,697 )     169,449       (597,011 )
                                 
Total other income (expense)     (592,657 )     (52,525 )     169,449       (475,733 )
                                 
Income (Loss) before income taxes     4,006,232       1,241       (665,189 )     3,342,284  
                                 
Income tax benefit (expense)     22,578       -       (25,199 )     (2,621 ) 
                                 
Net Income (Loss)   $ 4,028,810     $ 1,241     $ (690,388 )   $ 3,339,663  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 12,374,214     $ 11,479,953     $ 205,906     $ 24,060,073  
                                 
Total Liabilities     1,109,003       1,475,442       7,648,208       10,232,653  
                                 
Revenues from Intercompany Sales - eliminated from sales above     1,895,015       387,142       1,797,775       4,079,932  
                                 
Depreciation and Amortization     528,667       412,220       12,739       953,626  
                                 
Purchases of Long-lived Assets     2,419,093       129,989       12,470       2,561,552  

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2016                                
                                 
Revenues from External Customers   $ 10,584,141     $ 10,534,178     $ -     $ 21,118,319  
                                 
Cost of Revenues     3,081,892       5,383,430       -       8,465,322  
                                 
Gross Profit     7,502,249       5,150,748       -       12,652,997  
                                 
Research & Development     1,013,125       -       -       1,013,125  
Selling, General & Administrative     2,848,809       2,785,195       467,223       6,101,227  
                                 
Total Operating Expenses     3,861,934       2,785,195       467,223       7,114,352  
                                 
Operating Income (Loss)     3,640,315       2,365,553       (467,223 )     5,538,645  
                                 
Other Income (Expense)                                
                                 
Other Income     166,449       5,641       -       172,090  
Interest Expense     (813,402 )     (277,875 )     234,845       (856,432 )
                                 
Total other income (expense)     (646,953 )     (272,234 )     234,845       (684,342 )
                                 
Income (Loss) before income taxes     2,993,362       2,093,319       (232,378 )     4,854,303  
                                 
Income tax benefit (expense)     139,619       (39,783 )     (23,591 )     76,245  
                                 
Net Income (Loss)   $ 3,132,981     $ 2,053,536     $ (255,969 )   $ 4,930,548  
                                 
Supplemental Disclosures                                
                                 
                                 
Total Assets   $ 11,649,606     $ 10,883,182     $ 302,732     $ 22,835,520  
                                 
Total Liabilities     1,381,048       1,019,074       10,280,885       12,681,007  
                                 
Revenues from Intercompany Sales - eliminated from sales above     1,871,801       330,098       1,164,250       3,366,149  
                                 
Depreciation and Amortization     503,327       293,219       12,831       809,377  
                                 
Purchases of Long-lived Assets     604,607       (2,857 )     12,470       614,220  

 

Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the years ended October 31, 2017 and 2016, respectively:

 

    USA     Europe     Australia     Total  
                         
External Revenues by Geographic Locations                                
                                 
Year Ended October 31, 2017   $ 7,499,900     $ 9,056,589     $ 1,468,684     $ 18,025,173  
                                 
Year Ended October 31, 2016   $ 11,116,336     $ 8,398,768     $ 1,603,215     $ 21,118,319