Annual report pursuant to Section 13 and 15(d)

Segment Analysis

v3.20.4
Segment Analysis
12 Months Ended
Oct. 31, 2020
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. 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 as of and for the years ended October 31, 2020 and 2019, 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  
                         
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     19,184       190       -       19,374  
Funding from Paycheck Protection Program     122,327       526,544       -       648,871  
Interest (Expense)     (10,612 )     (15,672 )     (43,919 )     (70,203 )
                                 
Total Other Income (Expense)     130,899       511,062       (43,919 )     598,042  
                                 
Net Income (Loss) before Income Taxes     4,420,046       913,245       (1,931,484 )     3,401,807  
                                 
Income Tax Benefit (Expense)                                
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  

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Year Ended October 31, 2019                                
                                 
Revenues from External Customers   $ 12,908,110     $ 12,148,824     $ -     $ 25,056,934  
                                 
Cost of Revenues     2,519,768       6,107,847       -       8,627,615  
                                 
Gross Profit     10,388,342       6,040,977       -       16,429,319  
                                 
Research & Development     2,208,749       146,061       446,521       2,801,331  
Selling, General & Administrative     3,080,134       2,492,410       1,802,007       7,374,551  
                                 
Total Operating Expenses     5,288,883       2,638,471       2,248,528       10,175,882  
                                 
Income (Loss) from Operations     5,099,459       3,402,506       (2,248,528 )     6,253,437  
                                 
Other Income (Expense)                                
Other Income     70,186       26       -       70,212  
Interest Expense     (10,564 )     (14,820 )     (65,712 )     (91,096 )
                                 
Total Other Income (Expense)     59,622       (14,794 )     (65,712 )     (20,884 )
                                 
Net Income (Loss) before Income Taxes     5,159,081       3,387,712       (2,314,240 )     6,232,553  
                                 
Current Tax Benefit     (9,391 )     33,454       15,359       39,422  
Deferred Tax (Expense)     (336,101 )     (496,318 )     (214,357 )     (1,046,776 )
                                 
Total Income Tax Expense     (345,492 )     (462,864 )     (198,998 )     (1,007,354 )
                                 
Net Income (Loss)   $ 4,813,589     $ 2,924,848     $ (2,513,238 )   $ 5,225,199  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 19,386,652     $ 14,165,120     $ 959,472     $ 34,511,244  
                                 
Total Liabilities   $ 1,753,823     $ 962,641     $ 1,167,007     $ 3,883,471  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 1,590,548     $ 145,150     $ 2,700,000     $ 4,435,698  
                                 
Depreciation and Amortization   $ 581,942     $ 236,092     $ 15,741     $ 833,775  
                                 
Purchases of Long-lived Assets   $ 2,183,009     $ 81,446     $ 37,180     $ 2,301,635  

 

    For the Year Ended October 31, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
Americas                        
Equipment Sales   $ 1,368,113     $ -     $ 1,368,113  
Equipment Rentals     175,282       -       175,282  
Software Sales     35,635       -       35,635  
Engineering Parts     -       4,546,391       4,546,391  
Services     1,422,830       1,230,283       2,653,113  
Europe                        
Equipment Sales     583,006       230,060       813,066  
Equipment Rentals     697,638       -       697,638  
Software Sales     113,860       -       113,860  
Engineering Parts     -       2,753,488       2,753,488  
Services     485,954       5,407       491,361  
Australia/Asia                        
Equipment Sales     5,165,905       -       5,165,905  
Equipment Rentals     487,639       -       487,639  
Software Sales     304,143       -       304,143  
Services     297,823       -       297,823  
Middle East & Africa                        
Equipment Sales     66,556       -       66,556  
Equipment Rentals     592       -       592  
Software Sales     -       -       -  
Services     73,205       -       73,205  
                         
Total Net Sales   $ 11,278,181     $ 8,765,629     $ 20,043,810  

 

    For the Year Ended October 31, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Geographic Area                        
Americas   $ 3,001,860     $ 5,776,674     $ 8,778,534  
Europe     1,880,458       2,988,955       4,869,413  
Australia/Asia     6,255,510       -       6,255,510  
Middle East & Africa     140,353       -       140,353  
                         
Total Net Sales   $ 11,278,181     $ 8,765,629     $ 20,043,810  

 

    For the Year Ended October 31, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Product Line                        
Equipment Sales   $ 7,183,580     $ 230,060     $ 7,413,640  
Equipment Rentals     1,361,151       -       1,361,151  
Software Sales     453,638       -       453,638  
Engineering Parts     -       7,299,879       7,299,879  
Services     2,279,812       1,235,690       3,515,502  
                         
Total Net Sales   $ 11,278,181     $ 8,765,629     $ 20,043,810  

 

    For the Year Ended October 31, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
Americas                        
Equipment Sales   $ 744,604     $ 57,497     $ 802,101  
Equipment Rentals     639,055       -       639,055  
Software Sales     53,540       -       53,540  
Engineering Parts     -       9,117,338       9,117,338  
Services     1,187,873       1,744,577       2,932,450  
Europe                        
Equipment Sales     1,626,052       145,933       1,771,985  
Equipment Rentals     1,137,244       -       1,137,244  
Software Sales     167,903       -       167,903  
Engineering Parts     -       1,023,822       1,023,822  
Services     726,050       59,657       785,707  
Australia/Asia                        
Equipment Sales     4,259,093       -       4,259,093  
Equipment Rentals     876,141       -       876,141  
Software Sales     324,222       -       324,222  
Services     627,615       -       627,615  
Middle East & Africa                        
Equipment Sales     301,165       -       301,165  
Equipment Rentals     36,130       -       36,130  
Software Sales     58,826       -       58,826  
Services     142,597       -       142,597  
                         
Total Net Sales   $ 12,908,110     $ 12,148,824     $ 25,056,934  

 

    For the Year Ended October 31, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Geographic Area                        
Americas   $ 2,625,072     $ 10,919,412     $ 13,544,484  
Europe     3,657,249       1,229,412       4,886,661  
Australia/Asia     6,087,071       -       6,087,071  
Middle East & Africa     538,718       -       538,718  
                         
Total Net Sales   $ 12,908,110     $ 12,148,824     $ 25,056,934  

 

    For the Year Ended October 31, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Product Line                        
Equipment Sales   $ 6,930,914     $ 203,430     $ 7,134,344  
Equipment Rentals     2,688,570       -       2,688,570  
Software Sales     604,491       -       604,491  
Engineering Parts     -       10,141,160       10,141,160  
Services     2,684,135       1,804,234       4,488,369  
                         
Total Net Sales   $ 12,908,110     $ 12,148,824     $ 25,056,934