x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
34-200-8348
|
|
(State
or other jurisdiction of Incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
|
164
West, 25th
Street, 6R, New York
|
10001
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Registrant's
telephone number, including area code:
|
(212)
924-3442
|
Large
accelerated filer o
|
Accelerated
filer o
|
Smaller
reporting company x
|
Page
|
||||
PART
I - Financial Information
|
1
|
|||
Item
1: Financial Statements
|
1
|
|||
Six
Months Ended April 30, 2009 and 2008
|
||||
Condensed
Consolidated Balance Sheet as of April 30, 2009 (Unaudited) and October
31, 2008
|
1
|
|||
Condensed
Consolidated Statements of Operations and Comprehensive Loss for the Three
and Six Months Ended April 30, 2009 and 2008 (Unaudited)
|
2
|
|||
Condensed
Consolidated Statement of Deficiency in Stockholders’ Equity for the
Six Months Ended April 30, 2009 (Unaudited)
|
3
|
|||
Condensed
Consolidated Statements of Cash Flows for the Six Months Ended April 30,
2009 and 2008 (Unaudited)
|
4
|
|||
Notes
to Condensed Consolidated Financial Statements (Unaudited)
|
5
|
|||
Item
2: Management's Discussion and Analysis or Plan of
Operation
|
22
|
|||
Item 4T: Controls and
Procedures
|
32
|
|||
PART
II - Other Information
|
33
|
|||
Item
1: Legal Proceedings
|
33
|
|||
Item
2: Unregistered Sales of Equity Securities and Use of
Proceeds
|
33
|
|||
Item
3: Defaults Upon Senior Securities
|
33
|
|||
Item
4: Submission of Matters to a Vote of Security Holders
|
33
|
|||
Item
5: Other Information
|
33
|
|||
Item
6: Exhibits
|
33
|
|||
Signatures
|
34
|
April 30,
2009
(Unaudited)
|
October 31,
2008
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
179,383
|
$
|
3,896,149
|
||||
Restricted
cash, Note 2
|
1,505,837
|
1,017,007
|
||||||
Short-term
investments, Note 4
|
68,000
|
153,000
|
||||||
Accounts
receivable, net of allowance for doubtful accounts
|
2,584,084
|
2,589,174
|
||||||
Inventory
|
3,010,876
|
2,317,322
|
||||||
Due
from related parties, Note 13
|
11,619
|
54,166
|
||||||
Unbilled
receivables, Note 3
|
964,836
|
518,326
|
||||||
Other
current assets, Note 5
|
211,142
|
407,080
|
||||||
Prepaid
expenses
|
347,950
|
385,831
|
||||||
Total
current assets
|
8,883,727
|
11,338,055
|
||||||
Property
and equipment, net, Note 6
|
378,143
|
355,909
|
||||||
Deferred
financing costs, net of accumulated amortization of $268,096 in 2009 and
$181,596 in 2008, Note 12
|
1,426,797
|
1,513,297
|
||||||
Goodwill
and other intangible assets, net, Note 7
|
4,298,459
|
3,832,023
|
||||||
Total
assets
|
$
|
14,987,126
|
$
|
17,039,284
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable, trade
|
$
|
1,907,240
|
$
|
1,159,849
|
||||
Accrued
expenses and other current liabilities
|
1,882,950
|
2,347,522
|
||||||
Deferred
revenues, Note 3
|
223,454
|
268,650
|
||||||
Deferred
payment related to acquisitions, Note 14
|
208,586
|
-
|
||||||
Accrued
dividends on Series A preferred stock
|
38,108
|
53,874
|
||||||
Due
to related parties, Note 13
|
-
|
41,904
|
||||||
Loans
and notes payable, short term, Note 12
|
12,802,982
|
12,358,597
|
||||||
Total
current liabilities
|
17,063,320
|
16,230,396
|
||||||
Loans
and notes payable, long term, Note 12
|
157,382
|
162,700
|
||||||
Total
liabilities
|
17,220,702
|
16,393,096
|
||||||
Deficiency
in stockholders' equity, Note 8:
|
||||||||
Preferred
stock, $.001 par value; 5,000,000 shares authorized, 6,287 series A issued
and outstanding, as of April 30, 2009 and October 31, 2008
respectively
|
6
|
6
|
||||||
Common
stock, $.001 par value; 150,000,000 shares authorized, 49,000,244 and
48,853,664 shares issued and outstanding as of April 30, 2009 and October
31, 2008 respectively
|
49,000
|
48,854
|
||||||
Common
stock subscribed
|
120,000
|
131,790
|
||||||
Additional
paid-in capital
|
51,743,418
|
51,433,049
|
||||||
Accumulated
other comprehensive loss
|
(1,028,827
|
)
|
(1,317,696
|
)
|
||||
Accumulated
deficit
|
( 53,117,173
|
)
|
(49,649,815
|
)
|
||||
Total
deficiency in stockholders' equity
|
(2,233,576
|
)
|
646,188
|
|||||
Total
liabilities and deficiency in stockholders' equity
|
$
|
14,987,126
|
$
|
17,039,284
|
For
the three
months
|
For
the three
months
|
For
the six
months
|
For
the six
months
|
|||||||||||||
ended
April 30,
|
ended
April 30,
|
ended
April 30,
|
ended
April 30,
|
|||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
|
|
||||||||||||||
Net
revenue
|
$ | 4,307,447 | $ | 5,096,684 | $ | 7,506,553 | $ | 8,223,915 | ||||||||
Cost
of revenue
|
1,575,788 | 1,306,776 | 3,017,935 | 2,949,552 | ||||||||||||
Gross
profit
|
2,731,659 | 3,789,908 | 4,488,618 | 5,274,363 | ||||||||||||
Research
and development
|
456,477 | 764,308 | 1,060,158 | 1,453,501 | ||||||||||||
Selling,
general and administrative expenses
|
2,223,628 | 2,802,193 | 5,126,347 | 5,859,122 | ||||||||||||
Debt
modification cost
|
162,832 | - | 162,832 | - | ||||||||||||
Operating
income (loss)
|
(111,278 | ) | 223,407 | (1,860,719 | ) | (2,038,260 | ) | |||||||||
Other
income (expense)
|
||||||||||||||||
Other
income
|
3,547 | 44,368 | 31,187 | 49,225 | ||||||||||||
Interest
expense
|
(426,814 | ) | (455,334 | ) | (824,238 | ) | (569,305 | ) | ||||||||
Impairment
of investment in short term investment
|
(782,000 | ) | - | (782,000 | ) | - | ||||||||||
Total
other income (expense)
|
(1,205,267 | ) | (410,966 | ) | (1,575,051 | ) | (520,080 | ) | ||||||||
Loss
before income taxes
|
(1,316,545 | ) | (187,559 | ) | (3,435,770 | ) | (2,558,340 | ) | ||||||||
Provision
for income taxes
|
- | - | - | - | ||||||||||||
Net
loss
|
(1,316,545 | ) | (187,559 | ) | (3,435,770 | ) | (2,558,340 | ) | ||||||||
Preferred
Stock Dividends:
|
||||||||||||||||
Series
A
|
(439 | ) | (28,931 | ) | (31,588 | ) | (75,024 | ) | ||||||||
Net
Loss Applicable to Common Shares
|
$ | (1,316,984 | ) | $ | (216,490 | ) | $ | (3,467,358 | ) | $ | (2,633,364 | ) | ||||
Loss
per share, basic and diluted
|
(0.03 | ) | (0.00 | ) | (0.07 | ) | (0.05 | ) | ||||||||
Weighted
average shares outstanding
|
49,000,244 | 48,317,993 | 48,950,494 | 48,283,808 | ||||||||||||
Comprehensive
loss:
|
||||||||||||||||
Net
loss
|
$ | (1,316,545 | ) | $ | (187,559 | ) | $ | (3,435,770 | ) | $ | (2,558,340 | ) | ||||
Foreign
currency translation adjustment
|
(18,531 | ) | (4,289 | ) | (408,131 | ) | (121,950 | ) | ||||||||
Unrealized
loss on investment
|
- | (195,500 | ) | - | (382,500 | ) | ||||||||||
Comprehensive
loss
|
$ | (1,335,076 | ) | $ | (387,348 | ) | $ | (3,843,901 | ) | $ | (3,062,790 | ) |
Preferred
Stock
Series
A
|
Preferred
Stock
Series
B
|
Common
Stock
|
Common
Stock
|
Additional
Paid-in
|
Accumulated
Other
Comprehensive
|
Accumulated
|
||||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Subscribed
|
Capital
|
Loss
|
Deficit
|
Total
|
||||||||||||||||||||||||||||||||||
Balance,
October 31, 2008
|
6,287
|
$
|
6
|
-
|
$
|
-
|
48,853,664
|
$
|
48,854
|
131,790
|
$
|
51,433,049
|
$
|
(1,317,696
|
)
|
$
|
(49,649,815
|
)
|
$
|
646,188
|
||||||||||||||||||||||||
Stock
issued for compensation
|
146,580
|
147
|
(11,790
|
)
|
$
|
30,163
|
$
|
18,520
|
||||||||||||||||||||||||||||||||||||
Fair
value of options issued for compensation
|
$
|
280,206
|
$
|
280,206
|
||||||||||||||||||||||||||||||||||||||||
Preferred
stock dividends Series A
|
$
|
(31,588
|
)
|
$
|
(31,588
|
)
|
||||||||||||||||||||||||||||||||||||||
Foreign
currency translation adjustment
|
$
|
(408,131
|
)
|
$
|
(408,131
|
)
|
||||||||||||||||||||||||||||||||||||||
Realized gain
from marketable securities
|
$
|
697,000
|
$
|
697,000
|
||||||||||||||||||||||||||||||||||||||||
Net
loss
|
$
|
(3,435,770
|
)
|
$
|
(3,435,770
|
)
|
||||||||||||||||||||||||||||||||||||||
Balance
April 30, 2009
|
6,287
|
$
|
6
|
-
|
$
|
-
|
49,000,244
|
$
|
49,000
|
$
|
120,000
|
$
|
51,743,418
|
$
|
(1,028,827
|
)
|
$
|
(53,117,173
|
)
|
$
|
(2,233,576
|
)
|
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
loss
|
$
|
(3,435,770
|
)
|
$
|
(2,558,340
|
)
|
||
Adjustments
to reconcile net loss to net cash used by operating
activities:
|
||||||||
Depreciation
and amortization
|
291,953
|
253,155
|
||||||
Stock
based compensation
|
298,726
|
196,189
|
||||||
Financing
costs
|
767,143
|
395,430
|
||||||
Impairment
of investment in marketable securities
|
782,000
|
-
|
||||||
Changes
in operating assets and liabilities:
|
||||||||
(Increase)
decrease in:
|
||||||||
Accounts
receivable
|
106,836
|
136,313
|
||||||
Inventory
|
(658,302
|
)
|
203,795
|
|||||
Prepaid
expenses
|
37,880
|
16,843
|
||||||
Other
receivables
|
(197,986
|
)
|
(407,638
|
)
|
||||
Increase
(decrease) in:
|
||||||||
Accounts
payable and accrued expenses
|
741,698
|
(492,299
|
)
|
|||||
Due
to related parties
|
(41,904
|
)
|
(169,784
|
)
|
||||
Net
cash used in operating activities
|
(1,307,726
|
)
|
(2,426,336
|
)
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases
of property and equipment
|
(52,814
|
)
|
(63,154
|
)
|
||||
Purchases
of intangible assets
|
-
|
(97,827
|
)
|
|||||
Increase
in restricted cash
|
(488,830
|
)
|
-
|
|||||
Acquisitions
|
(214,317
|
)
|
(763,936
|
)
|
||||
Cash
acquired from acquisitions
|
877
|
-
|
||||||
Net
cash used in investing activities
|
(755,084
|
)
|
(924,917
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
(Payments
for) proceeds from loans, net
|
(1,019,124
|
)
|
10,437,753
|
|||||
Preferred
stock dividend paid
|
(47,354
|
)
|
(64,491
|
)
|
||||
Net
cash (used in) provided by financing activities
|
(1,066,478
|
)
|
10,373,262
|
|||||
Effect
of exchange rate changes on cash
|
(587,478
|
)
|
(214,460
|
)
|
||||
Net
decrease in cash
|
(3,716,766
|
)
|
6,807,549
|
|||||
Cash
and cash equivalents, beginning of period
|
3,896,149
|
916,257
|
||||||
Cash
and cash equivalents, end of period
|
$
|
179,383
|
$
|
7,723,806
|
||||
Cash
paid for:
|
||||||||
Interest
|
$
|
1,077,095
|
$
|
282,805
|
||||
Income
taxes
|
-
|
-
|
Equipment,
net
|
$
|
5,000
|
||
Customer
relationships acquired
|
60,000
|
|||
Non-compete
agreements acquired
|
50,000
|
|||
Goodwill
|
135,000
|
|||
Deferred
payments
|
(125,000
|
)
|
||
Cash
paid for acquisition
|
$
|
125,000
|
Current
assets acquired
|
$
|
147,039
|
||
Equipment,
net
|
51,336
|
|||
Current
liabilities assumed
|
(201,166
|
)
|
||
Customer
relationships acquired
|
29,740
|
|||
Non-compete
agreements acquired
|
29,740
|
|||
Goodwill
|
282,533
|
|||
Cash
acquired
|
877
|
|||
Deferred
payments
|
(250,782
|
)
|
||
Cash
paid for acquisition
|
$
|
89,317
|
Quoted Prices
in Active
Markets for
Identical
Instruments
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Assets:
|
||||||||||||||||
Short
term Investment
|
$
|
68,000
|
$
|
68,000
|
|
|
||||||||||
Total
|
$
|
68,000
|
$
|
68,000
|
-
|
-
|
||||||||||
Liabilities: | ||||||||||||||||
Notes
Payable
|
$ |
12,800,786
|
$ | 12,800,786 | - | - | ||||||||||
Total
|
12,800,786 | 12,800,786 | - | - |
2009
|
2008
|
|||||||
Raw
materials
|
$
|
1,324,473
|
$
|
1,917,566
|
||||
Work
in process
|
164,219
|
113,942
|
||||||
Finished
goods
|
1,522,185
|
285,814
|
||||||
Total
inventory
|
$
|
3,010,876
|
$
|
2,317,322
|
2009
|
2008
|
|||||||
Deposits
|
$
|
86,955
|
$
|
110,548
|
||||
Value
added tax (VAT)
|
26,622
|
262,090
|
||||||
Other
receivable
|
97,565
|
34,442
|
||||||
Total
|
$
|
211,142
|
$
|
407,080
|
2009
|
2008
|
|||||||
Machinery
and equipment
|
$
|
1,183,741
|
$
|
1,076,950
|
||||
Accumulated
depreciation
|
(805,598
|
)
|
(721,041
|
)
|
||||
Net
property and equipment assets
|
$
|
378,143
|
$
|
355,909
|
2009
|
2008
|
|||||||
Customer
relationships (weighted average life of 9.2 years)
|
$
|
784,242
|
$
|
694,503
|
||||
Non-compete
agreements (weighted average life of 2.8 years)
|
278,650
|
198,911
|
||||||
Patents
(weighted average life of 10 years)
|
63,695
|
63,695
|
||||||
Licenses
(weighted average life of 2 years)
|
100,000
|
100,000
|
||||||
Total
amortized identifiable intangible assets - gross carrying
value
|
1,226,587
|
1,057,109
|
||||||
Less
accumulated amortization
|
(445,238
|
)
|
(324,661
|
)
|
||||
Net
|
781,349
|
732,448
|
||||||
Residual
value
|
$
|
781,349
|
$
|
732,448
|
2009
|
$
|
101,498
|
||
2010
|
142,721
|
|||
2011
|
130,66
6
|
|||
2012
|
75,824
|
|||
2013
and thereafter
|
330,640
|
|||
Total
|
$
|
781,349
|
2009
|
2008
|
|||||||
Beginning
goodwill balance at November 1
|
$
|
3,099,575
|
$
|
3,099,575
|
||||
Goodwill
recorded upon acquisition
|
417,533
|
-
|
||||||
Balance
at April 30, 2009 and October 31, 2008
|
$
|
3,517,108
|
$
|
3,099,575
|
Six months ended
April
30, 2009
|
Year ended
October 31, 2008
|
|||||||||||||||
Number
|
Weighted
Average Exercise
Price
|
Number
|
Weighted
Average Exercise
Price
|
|||||||||||||
Outstanding
at beginning of the period
|
38,339,318
|
$
|
1.39
|
36,519,318
|
$
|
1.29
|
||||||||||
Granted
during the period
|
-
|
-
|
1,870,000
|
1.36
|
||||||||||||
Terminated
during the period
|
(210,000
|
)
|
1.32
|
(50,000
|
)
|
1.70
|
||||||||||
Outstanding
at the end of the period
|
38,129,318
|
$
|
1.39
|
38,339,318
|
$
|
1.39
|
||||||||||
Exercisable
at the end of the period
|
37,066,418
|
$
|
1.39
|
37,161,418
|
$
|
1.39
|
Range of
Exercise Prices
|
Number
Outstanding
|
Weighted Average
Contractual Life
(Yrs)
|
Total Exercisable
|
|||||||||
0.50
|
750,000
|
2.00
|
750,000
|
|||||||||
0.58
|
400,000
|
1.92
|
400,000
|
|||||||||
1.00
|
5,795,900
|
2.07
|
5,739,800
|
|||||||||
1.30
|
16,046,709
|
2.79
|
15,186,959
|
|||||||||
1.50
|
425,000
|
2.71
|
400,250
|
|||||||||
1.70
|
14,651,709
|
2.67
|
14,549,409
|
|||||||||
1.80
|
60,000
|
3.40
|
40,000
|
|||||||||
Totals
|
38,129,318
|
2.61
|
37,066,418
|
Non-Current
|
2009
|
2008
|
||||||
Net
Operating Loss Carry Forward
|
$
|
17,384,000
|
$
|
16,485,000
|
||||
Valuation
Allowance
|
(17,384,000
|
)
|
(16,485,000
|
)
|
||||
Net
Deferred Tax Asset
|
$
|
-
|
$
|
-
|
2009
|
$
|
258,894
|
||
2010
|
481,214
|
|||
2011
|
444,164
|
|||
2012
|
245,138
|
|||
2013
and thereafter
|
326,678
|
|||
Total
|
$
|
1,756,088
|
April 31,
2009
|
October 31,
2008
|
|||||||
The
Company has a secured convertible debenture for $12M with a life of 7
years from February 26, 2008, maturing at 130% of face value, and with
interest payable every six months, starting in February 2009, at a rate of
8.5%; During the term, the debentures are convertible into our common
stock at the option of the Noteholders at a conversion price of $1.05. We
may also force the conversion of these Notes into our common stock after
two years in the event that we obtain a listing on a national exchange and
our stock price closes on 40 consecutive trading days at or above $2.50
between the second and third anniversaries of this agreement; $2.90
between the third and fourth anniversaries of this agreement; and $3.50
after the fourth anniversary of this agreement or where the daily volume
weighted average price of our stock as quoted on OTCBB or any other US
National Exchange on which our securities are then listed has, for at
least 40 consecutive trading days closed at the agreed price. The Company
has failed to comply with certain covenants contained in the debenture
agreement.
|
$
|
12,800,786
|
$
|
12,348,493
|
||||
The
Company, through its UK subsidiary Coda Octopus Products Ltd has a 7 year
unsecured loan note for £100,000; interest rate of 12% annually; repayable
at borrower’s instigation or convertible into common stock when the share
price reaches $3.
|
148,598
|
162,700
|
||||||
The
Company through its US subsidiary Coda Octopus Colmek, Inc., has an
unsecured loan note payable to a director and former officer of the
Company, which is being repaid in the short term.
|
-
|
10,104
|
||||||
The
Company through its UK subsidiary, Dragon Design Ltd, has an outstanding
loan note payable for £14,000 over 36 months, commencing in November 2007,
with monthly payments of £454.42 and an annual interest rate of 14.5%. By
the end of April 2009, 20 payments remained on this note.
|
10,980
|
-
|
||||||
The
Company through its UK subsidiary, Dragon Design Ltd, has an unsecured
revolving line of credit with their bank for £40,000, which is repayable
on demand. The amount outstanding on this line of credit was reduced to
zero in February 2009.
|
-
|
-
|
||||||
Total
|
$
|
12,960,364
|
$
|
12,521,297
|
||||
Less:
current portion
|
12,802,982
|
12,358,597
|
||||||
Total
long-term portion
|
$
|
157,382
|
$
|
162,700
|
Equipment,
net
|
$
|
5,000
|
||
Customer
relationships acquired
|
60,000
|
|||
Non-compete
agreements acquired
|
50,000
|
|||
Goodwill
|
135,000
|
|||
Total
purchase price
|
$
|
250,000
|
Current
assets acquired
|
$
|
147,039
|
||
Equipment,
net
|
51,336
|
|||
Current
liabilities assumed
|
(201,166
|
)
|
||
Customer
relationships acquired
|
29,740
|
|||
Non-compete
agreements acquired
|
29,740
|
|||
Goodwill
|
282,533
|
|||
Cash
acquired
|
877
|
|||
Total
purchase price
|
$
|
340,099
|
2009
|
||||
Revenue
|
$
|
7,638,252
|
||
Net
loss
|
(2,546,002
|
)
|
||
Loss
per common share
|
$
|
(0.05
|
)
|
Contracting
|
Products
|
Corporate
|
Totals
|
|||||||||||||
Revenues
|
$
|
3,805,323
|
$
|
2,607,058
|
$
|
1,094,173
|
$
|
7,506,553
|
||||||||
Operating
profit/(loss)
|
97,432
|
1,029,483
|
(2,987,635
|
)
|
(1,860,720
|
)
|
||||||||||
Identifiable
assets
|
5,912,632
|
3,000,278
|
6,074,216
|
14,987,126
|
||||||||||||
Capital
expenditure
|
259,250
|
10,237
|
33,327
|
302,814
|
||||||||||||
Selling,
general & administrative
|
1,569,180
|
986,180
|
2,570,987
|
5,126,347
|
||||||||||||
Depreciation
& amortization
|
151,837
|
31,006
|
109,109
|
291,953
|
||||||||||||
Interest
expense
|
7,342
|
13,295
|
803,601
|
824,238
|
2009
|
2008
|
|||||||
Revenues:
|
||||||||
United
States
|
$
|
2,384,933
|
$
|
7,362,966
|
||||
United
Kingdom
|
4,027,448
|
9,605,956
|
||||||
Corporate
and other
|
1,094,173
|
-
|
||||||
Total
Revenues
|
$
|
7,506,553
|
$
|
16,968,922
|
||||
Assets:
|
||||||||
United
States
|
$
|
4,512,475
|
$
|
4,357,042
|
||||
United
Kingdom
|
4,400,435
|
5,478,233
|
||||||
Corporate
and other
|
6,074,216
|
7,204,009
|
||||||
Total
Assets
|
$
|
14,987,126
|
$
|
17,039,284
|
1.
|
It
has raised approximately $33 million in funds, through three private
placements primarily with institutional investors. The Company raised
approximately $8 million in 2006, approximately $13 million in April/May
2007, and approximately $12 million in a convertible debt transaction that
was completed in February 2008.
|
2.
|
It
has completed the commercialization of the Echoscope and successfully
deployed its real-time 3D technology and products on three continents with
major corporations, governments, ports, law enforcement agencies and
security organizations.
|
3.
|
It
has significantly broadened both its revenue base and its base of
expertise in engineering, defense electronics, military and security
training, and software development primarily through the acquisition of
four privately held companies. Management believes that broadening the
base of the Company in these specific areas was necessary to position Coda
Octopus as a reliable and experienced contractor, subcontractor and
supplier of 3D sonar products and systems on a worldwide
basis.
|