Annual report pursuant to Section 13 and 15(d)

Segment Analysis

v3.10.0.1
Segment Analysis
 12 Months Ended
Oct. 31, 2018
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 (“Services Segment), and the balance of our operations are comprised of product sales (“Products Segment”).

 

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, 2018 and 2017 respectively.

 

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

 

* 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.

 

Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the years ended October 31, 2018 and 2017 respectively:

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2018                                
                                 
Revenues from External Customers   $ 11,449,416     $ 6,570,013     $ -     $ 18,019,429  
                                 
Cost of Revenues     1,894,808       3,462,259       -       5,357,067  
                                 
Gross Profit     9,554,608       3,107,754       -       12,662,362  
                                 
Research & Development     2,048,285       523,429       -       2,571,714  
Selling, General & Administrative     2,882,049       2,366,226       1,531,606       6,779,881  
                                 
Total Operating Expenses     4,930,334       2,889,655       1,531,606       9,351,595  
                                 
Income (Loss) from Operations     4,624,274       218,099       (1,531,606 )     3,310,767  
                                 
Other Income (Expense)                                
                                 
Other Income     39,122       2,100       -       41,222  
Interest (Expense) Income     (12,154 )     (59,599 )     (177,337 )     (249,090 )
                                 
Total Other Income (Expense)     26,968       (57,499 )     (177,337 )     (207,868 )
                                 
Net Income (Loss) before income taxes     4,651,242       160,600       (1,708,943 )     3,102,899  
                                 
Current income benefit (expense)     133,419       -       (1,956 )     (131,463 )
Deferred tax benefit     -       -       1,754,169       1,754,169  
                                 
Income benefit (expense)     133,419       -        1,752,213        1,885,632   
                                 
Net Income (Loss)   $ 4,784,661     $ 160,600     $ 43,270     $ 4,988,531  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 15,061,693     $ 11,674,640     $ 2,000,278     $ 28,736,611  
                                 
Total Liabilities   $ 1,142,661     $ 1,498,828     $ 1,708,172     $ 4,349,661  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 1,176,438     $ 437,387     $ 3,100,000     $ 4,713,825  
                                 
Depreciation and Amortization   $ 461,429     $ 282,836     $ 14,143     $ 758,408  
                                 
Purchases of Long-lived Assets   $ 499,262     $ 61,329     $ 76,561     $ 637,152  

  

    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  
                                 
Income (Loss) from Operations     4,598,889       53,766       (834,638 )     3,818,017  
                                 
Other Income (Expense)                                
                                 
Other Income     117,106       4,172       -       121,278  
Interest Expense     (709,763 )     (56,697 )     169,449       (597,011 )
                                 
Total Other Income (Expense)     (592,657 )     (52,525 )     169,449       (475,733 )
                                 
Net Income (Loss) before income taxes     4,006,233       1,241       (665,189 )     3,342,284  
                                 
Income refund (expense)     22,578       -       (25,199 )     (2,621 )
                                 
Net Income   $ 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   $ 2,419,092     $ 129,989     $ 12,470     $ 2,561,551  

 

    USA     Europe     Australia     Total  
                         
External Revenues by Geographic Locations                                
                                 
Year Ended October 31, 2018   $ 7,617,891     $ 10,029,806     $ 371,732     $ 18,019,429  
                                 
Year Ended October 31, 2017   $ 7,499,900     $ 9,056,589     $ 1,468,684     $ 18,025,173