Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.22.0.1
SEGMENT ANALYSIS
 3 Months Ended
Jan. 31, 2022
Segment Reporting [Abstract]  
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; diver management system; 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.

 

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 three months ended January 31, 2022, and 2021, 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

January 31, 2022 and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

    Marine
Technology
Business
(Products)		     Marine
Engineering
Business
(Services)		     Overhead     Total  
                         
Three Months Ended January 31, 2022                                
                                 
Net Revenues   $ 3,823,748     $ 2,014,460     $ -     $ 5,838,208  
                                 
Cost of Revenues     572,292       1,105,982       -       1,678,274  
                                 
Gross Profit     3,251,456       908,478       -       4,159,934  
                                 
Research & Development     529,375       143,515       -       672,890  
Selling, General & Administrative     753,614       651,149       706,349       2,111,112  
                                 
Total Operating Expenses     1,282,989       794,664       706,349       2,784,002  
                                 
Income (Loss) from Operations     1,968,467       113,814       (706,349 )     1,375,932  
                                 
Other Income (Expense)                                
Other Income     9,049       70,945       -       79,994  
Interest Expense     (4,882 )     (5,026 )     (1,370 )     (11,278 )
                                 
Total Other Income (Expense)     4,167       65,919       (1,370 )     68,716  
                                 
Income (Loss) before Income Taxes     1,972,634       179,733       (707,719 )     1,444,648  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (266,520 )     24,036       (43,125 )     (285,609 )
Deferred Tax Benefit     6,708       204       51,297       58,209  
                                 
Total Income Tax (Expense) Benefit     (259,812 )     24,240       8,172       (227,400 )
                                 
Net Income (Loss)   $ 1,712,822     $ 203,973     $ (699,547 )   $ 1,217,248  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 30,847,114     $ 13,893,382     $ 658,735     $ 45,399,231  
                                 
Total Liabilities   $ 1,635,666     $ 501,339     $ 429,580     $ 2,566,585  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 389,395     $ 115,823     $ 600,000     $ 1,105,218  
                                 
Depreciation and Amortization   $ 135,658     $ 16,657     $ 9,151     $ 161,466  
                                 
Purchases of Long-lived Assets   $ 986,093     $ 1,000     $ 14,871     $ 1,001,964  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2022 and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

    Marine
Technology
Business
(Products)		     Marine
Engineering
Business
(Services)		     Overhead     Total  
                         
Three Months Ended January 31, 2021                                
                                 
Net Revenues   $ 3,748,279     $ 1,302,180     $ -     $ 5,050,459  
                                 
Cost of Revenues     894,275       841,262       -       1,735,537  
                                 
Gross Profit     2,854,004       460,918       -       3,314,922  
                                 
Research & Development     441,744       141,395       -       583,139  
Selling, General & Administrative     733,825       567,559       511,982       1,813,366  
                                 
Total Operating Expenses     1,175,569       708,954       511,982       2,396,505  
                                 
Income (Loss) from Operations     1,678,435       (248,036 )     (511,982 )     918,417  
                                 
Other Income (Expense)                                
Other Income     2,036       18       -       92,025  
Interest Expense     (2,253 )     (5,151 )     (7,110 )     (14,514 )
                                 
Total Other Income (Expense)     (217 )     (5,133 )     (7,110 )     77,511  
                                 
Income (Loss) before Income Taxes     1,678,218       (253,169 )     (519,092 )     995,928  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     12,653       -       12,072       24,725  
Deferred Tax (Expense) Benefit     (11,155 )     152,086       (32,740 )     108,191  
                                 
Total Income Tax (Expense) Benefit     1,498       152,086       (20,668 )     132,916  
                                 
Net Income (Loss)   $ 1,679,716     $ (101,083 )   $ (539,760 )   $ 1,128,844  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 24,767,757     $ 14,362,811     $ 1,224,954     $ 40,355,522  
                                 
Total Liabilities   $ 1,573,260     $ 1,436,624     $ 720,466     $ 3,730,350  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 370,629     $ 49,201     $ 675,000     $ 1,094,830  
                                 
Depreciation and Amortization   $ 312,122     $ 47,645     $ 6,416     $ 366,183  
                                 
Purchases of Long-lived Assets   $ 399,975     $ 4,177     $ 4,992     $ 409,144  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2022 and October 31, 2021