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. 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 tables summarize segment asset and operating balances by reportable segment as of and for the three and six months ended
April 30, 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
April
30, 2022, and October 31, 2021
NOTE
14 -SEGMENT ANALYSIS (Continued)
SCHEDULE
OF SEGMENT REPORTING INFORMATION
|
|
|
Marine Technology Business (Products) |
|
|
|
Marine Engineering Business (Services) |
|
|
|
Overhead |
|
|
|
Total |
|
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
$ |
3,491,009 |
|
|
$ |
1,493,829 |
|
|
$ |
- |
|
|
$ |
4,984,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
816,033 |
|
|
|
1,137,099 |
|
|
|
- |
|
|
|
1,953,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
2,674,976 |
|
|
|
356,730 |
|
|
|
- |
|
|
|
3,031,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
617,246 |
|
|
|
(99,868 |
) |
|
|
- |
|
|
|
517,378 |
|
Selling, General & Administrative |
|
|
569,451 |
|
|
|
683,612 |
|
|
|
780,053 |
|
|
|
2,033,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
1,186,697 |
|
|
|
583,744 |
|
|
|
780,053 |
|
|
|
2,550,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
1,488,279 |
|
|
|
(227,014 |
) |
|
|
(780,053 |
) |
|
|
481,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
9,055 |
|
|
|
4,098 |
|
|
|
1,344 |
|
|
|
14,497 |
|
Funding from Paycheck Protection Program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
(2,502 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,502 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
6,553 |
|
|
|
4,098 |
|
|
|
1,344 |
|
|
|
11,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax Benefit (Expense) |
|
|
279 |
|
|
|
146,890 |
|
|
|
(38,019 |
) |
|
|
109,150 |
|
Deferred Tax (Expense) Benefit |
|
|
(1,926 |
) |
|
|
(45,184 |
) |
|
|
56,056 |
|
|
|
8,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Income Tax (Expense) Benefit |
|
|
(1,647 |
) |
|
|
101,706 |
|
|
|
18,037 |
|
|
|
118,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
1,493,185 |
|
|
$ |
(121,210 |
) |
|
$ |
(760,672 |
) |
|
$ |
611,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
30,503,346 |
|
|
$ |
13,541,238 |
|
|
$ |
818,060 |
|
|
$ |
44,862,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
$ |
2,255,971 |
|
|
$ |
616,133 |
|
|
$ |
447,774 |
|
|
$ |
3,319,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
$ |
413,654 |
|
|
$ |
126,870 |
|
|
$ |
607,500 |
|
|
$ |
1,148,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
$ |
241,469 |
|
|
$ |
31,190 |
|
|
$ |
9,816 |
|
|
$ |
282,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
$ |
84,969 |
|
|
$ |
11,049 |
|
|
$ |
43,494 |
|
|
$ |
139,512 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
April
30, 2022, and October 31, 2021
NOTE
14 -SEGMENT ANALYSIS (Continued)
|
|
|
Marine Technology Business (Products) |
|
|
|
Marine Engineering Business (Services) |
|
|
|
Overhead |
|
|
|
Total |
|
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
$ |
4,184,409 |
|
|
$ |
1,188,667 |
|
|
$ |
- |
|
|
$ |
5,373,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
1,022,701 |
|
|
|
600,771 |
|
|
|
- |
|
|
|
1,623,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
3,161,708 |
|
|
|
587,896 |
|
|
|
- |
|
|
|
3,749,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
538,878 |
|
|
|
106,403 |
|
|
|
- |
|
|
|
645,281 |
|
Selling, General & Administrative |
|
|
804,140 |
|
|
|
556,611 |
|
|
|
427,783 |
|
|
|
1,788,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
1,343,018 |
|
|
|
663,014 |
|
|
|
427,783 |
|
|
|
2,433,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
1,818,690 |
|
|
|
(75,118 |
) |
|
|
(427,783 |
) |
|
|
1,315,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
68,583 |
|
|
|
16 |
|
|
|
846 |
|
|
|
69,445 |
|
Funding from Paycheck Protection Program |
|
|
122,327 |
|
|
|
436,574 |
|
|
|
- |
|
|
|
558,901 |
|
Interest Expense |
|
|
- |
|
|
|
- |
|
|
|
(5,108 |
) |
|
|
(5,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
190,910 |
|
|
|
436,590 |
|
|
|
(4,262 |
) |
|
|
623,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax Benefit |
|
|
72,292 |
|
|
|
237,670 |
|
|
|
- |
|
|
|
309,962 |
|
Deferred Tax (Expense) Benefit |
|
|
(102,585 |
) |
|
|
112,550 |
|
|
|
(51,021 |
) |
|
|
(41,056 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Income Tax (Expense) Benefit |
|
|
(30,293 |
) |
|
|
350,220 |
|
|
|
(51,021 |
) |
|
|
268,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
1,979,307 |
|
|
$ |
711,692 |
|
|
$ |
(483,066 |
) |
|
$ |
2,207,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
27,086,894 |
|
|
$ |
14,667,654 |
|
|
$ |
966,418 |
|
|
$ |
42,720,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
$ |
1,839,295 |
|
|
$ |
1,027,958 |
|
|
$ |
586,739 |
|
|
$ |
3,453,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
$ |
504,411 |
|
|
$ |
90,443 |
|
|
$ |
675,000 |
|
|
$ |
1,269,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
$ |
200,536 |
|
|
$ |
26,436 |
|
|
$ |
6,709 |
|
|
$ |
233,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
$ |
144,232 |
|
|
$ |
1,371 |
|
|
$ |
44,442 |
|
|
$ |
190,045 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
April
30, 2022, and October 31, 2021
NOTE
14 -SEGMENT ANALYSIS (Continued)
|
|
|
Marine Technology Business (Products) |
|
|
|
Marine Engineering Business (Services) |
|
|
|
Overhead |
|
|
|
Total |
|
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended April 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
$ |
7,314,757 |
|
|
$ |
3,508,289 |
|
|
$ |
- |
|
|
$ |
10,823,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
1,388,325 |
|
|
|
2,243,081 |
|
|
|
- |
|
|
|
3,631,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
5,926,432 |
|
|
|
1,265,208 |
|
|
|
- |
|
|
|
7,191,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
1,146,621 |
|
|
|
43,647 |
|
|
|
- |
|
|
|
1,190,268 |
|
Selling, General & Administrative |
|
|
1,327,947 |
|
|
|
1,339,787 |
|
|
|
1,487,372 |
|
|
|
4,155,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
2,474,568 |
|
|
|
1,383,434 |
|
|
|
1,487,372 |
|
|
|
5,345,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
3,451,864 |
|
|
|
(118,226 |
) |
|
|
(1,487,372 |
) |
|
|
1,846,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
18,104 |
|
|
|
75,043 |
|
|
|
1,344 |
|
|
|
94,491 |
|
Interest Expense |
|
|
(2,502 |
) |
|
|
- |
|
|
|
(400 |
) |
|
|
(2,902 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
15,602 |
|
|
|
75,043 |
|
|
|
944 |
|
|
|
91,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax Benefit (Expense) |
|
|
(266,241 |
) |
|
|
170,926 |
|
|
|
(81,144 |
) |
|
|
(176,459 |
) |
Deferred Tax Benefit |
|
|
4,781 |
|
|
|
(44,980 |
) |
|
|
107,354 |
|
|
|
67,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Income Tax (Expense) Benefit |
|
|
(261,460 |
) |
|
|
125,946 |
|
|
|
26,210 |
|
|
|
(109,304 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
3,206,006 |
|
|
$ |
82,763 |
|
|
$ |
(1,460,218 |
) |
|
$ |
1,828,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
30,503,346 |
|
|
$ |
13,541,238 |
|
|
$ |
818,060 |
|
|
$ |
44,862,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
$ |
2,255,971 |
|
|
$ |
616,133 |
|
|
$ |
447,774 |
|
|
$ |
3,319,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
$ |
803,049 |
|
|
$ |
242,693 |
|
|
$ |
1,207,500 |
|
|
$ |
2,253,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
$ |
377,127 |
|
|
$ |
47,847 |
|
|
$ |
18,967 |
|
|
$ |
443,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
$ |
1,071,062 |
|
|
$ |
12,049 |
|
|
$ |
58,365 |
|
|
$ |
1,141,476 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
April
30, 2022, and October 31, 2021
NOTE
14 -SEGMENT ANALYSIS (Continued)
|
|
|
Marine Technology Business (Products) |
|
|
|
Marine Engineering Business (Services) |
|
|
|
Overhead |
|
|
|
Total |
|
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended April 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
$ |
7,932,688 |
|
|
$ |
2,490,847 |
|
|
$ |
- |
|
|
$ |
10,423,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
1,916,976 |
|
|
|
1,442,033 |
|
|
|
- |
|
|
|
3,359,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
6,015,712 |
|
|
|
1,048,814 |
|
|
|
- |
|
|
|
7,064,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
980,622 |
|
|
|
247,798 |
|
|
|
- |
|
|
|
1,228,420 |
|
Selling, General & Administrative |
|
|
1,540,218 |
|
|
|
1,129,321 |
|
|
|
940,686 |
|
|
|
3,610,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
2,520,840 |
|
|
|
1,377,119 |
|
|
|
940,686 |
|
|
|
4,838,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
3,494,872 |
|
|
|
(328,305 |
) |
|
|
(940,686 |
) |
|
|
2,225,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
70,619 |
|
|
|
34 |
|
|
|
846 |
|
|
|
71,499 |
|
Funding from Paycheck Protection Program |
|
|
122,327 |
|
|
|
526,545 |
|
|
|
- |
|
|
|
648,872 |
|
Interest Expense |
|
|
- |
|
|
|
- |
|
|
|
(11,297 |
) |
|
|
(11,297 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
192,946 |
|
|
|
526,579 |
|
|
|
(10,451 |
) |
|
|
709,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Tax Benefit |
|
|
84,945 |
|
|
|
237,670 |
|
|
|
12,072 |
|
|
|
334,688 |
|
Deferred Tax (Expense) Benefit |
|
|
(113,740 |
) |
|
|
264,636 |
|
|
|
(83,761 |
) |
|
|
67,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Income Tax (Expense) Benefit |
|
|
(28,795 |
) |
|
|
502,306 |
|
|
|
(71,689 |
) |
|
|
401,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
3,659,023 |
|
|
$ |
700,580 |
|
|
$ |
(1,022,826 |
) |
|
$ |
3,336,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
27,086,894 |
|
|
$ |
14,667,654 |
|
|
$ |
966,418 |
|
|
$ |
42,720,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
$ |
1,839,295 |
|
|
$ |
1,027,958 |
|
|
$ |
586,739 |
|
|
$ |
3,453,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
$ |
875,040 |
|
|
$ |
139,644 |
|
|
$ |
1,350,000 |
|
|
$ |
2,364,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
$ |
512,658 |
|
|
$ |
74,081 |
|
|
$ |
13,125 |
|
|
$ |
599,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
$ |
544,207 |
|
|
$ |
5,548 |
|
|
$ |
49,434 |
|
|
$ |
599,189 |
|
CODA
OCTOPUS GROUP, INC.
Notes
to the Consolidated Financial Statements
April
30, 2022, and October 31, 2021
|