Quarterly report pursuant to Section 13 or 15(d)

Segment Analysis

v3.7.0.1
Segment Analysis
 9 Months Ended
Jul. 31, 2017
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 engineering contractors and the balance of our operations are comprised of product sales.

 

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, as outlined in the October 31, 2016 financial statements.

 

There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes.

 

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

 

* United States

* Europe

* Australia

 

The following tables summarize segment asset and operating balances by reportable segment for the three months and nine months ended July 31, 2017 and 2016 respectively.

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2017                                
                                 
Revenues from External Customers   $ 3,439,587     $ 1,604,003     $ -     $ 5,043,590  
                                 
Cost of Revenues     1,054,369       928,392       -       1,982,761  
                                 
Gross Profit     2,385,218       675,611       -       3,060,829  
                                 
Research & Development     200,118       -       -       200,118  
Selling, General & Administrative     781,908       637,465       297,891       1,717,264  
                                 
Total Operating Expenses     982,026       637,465       297,891       1,917,382  
                                 
Operating Income (Loss)     1,403,192       38,146       (297,891 )     1,143,447  
                                 
Other Income (Expense)                                
                                 
Other Income     89,670       261       -       89,931  
Interest Expense     (5,947 )     (15,451 )     (90,691 )     (112,089 )
                                 
Total other income (expense)     83,723       (15,190 )     (90,691 )     (22,158)  
                                 
Income before income taxes     1,486,915       22,956       (388,582 )     1,121,289  
                                 
Income tax benefit (expense)     3,513       -       -       3,513  
                                 
Net Income   $ 1,490,428     $ 22,956     $ (388,582 )   $ 1,124,802  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 12,300,376     $ 12,529,169     $ 1,093,219     $ 25,922,764  
                                 
Total Liabilities     1,103,023       1,638,002       8,287,374       11,028,399  
                                 
Revenues from Intercompany Sales - eliminated from sales above     1,002,339       36,030       369,625       1,407,994  
                                 
Depreciation and Amortization     130,048       101,442       3,211       234,701  
                                 
Purchases of Long-lived Assets     252,653       45,841       -       298,494  

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2016                                
                                 
Revenues from External Customers   $ 2,427,570     $ 1,851,090     $ -     $ 4,278,660  
                                 
Cost of Revenues     622,195       810,478       -       1,432,673  
                                 
Gross Profit     1,805,375       1,040,612       -       2,845,987  
                                 
Research & Development     292,855       -       -       292,855  
Selling, General & Administrative     422,096       578,297       284,523       1,284,916  
                                 
Total Operating Expenses     714,951       578,297       284,523       1,577,771  
                                 
Operating Income (Loss)     1,090,424       462,315       (284,523 )     1,268,216  
                                 
Other Income (Expense)                                
                                 
Other Income     50,226       (111 )     -       50,115  
Interest Expense     (330,306 )     (110,113 )     222,948       (217,471 )
                                 
Total other income (expense)     (280,080 )     (110,224 )     222,948       (167,356 )
                                 
Income (Loss) before income taxes     810,344       352,091       (61,575 )     1,100,860  
                                 
Income tax benefit (expense)     -       -       -       -  
                                 
Net Income (Loss)   $ 810,344     $ 352,091     $ (61,575 )   $ 1,100,860  
                                 
Supplemental Disclosures                                
                                 
                                 
Total Assets   $ 11,883,612     $ 9,613,958     $ 155,302     $ 21,652,872  
                                 
Total Liabilities     1,218,381       640,083       10,808,862       12,667,326  
                                 
Revenues from Intercompany Sales - eliminated from sales above     286,892       (63,221 )     118,875       342,546  
                                 
Depreciation and Amortization     121,600       81,129       3,199       205,928  
                                 
Purchases of Long-lived Assets     (76,401 )     (8,648 )     3,600       (81,449 )

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Nine Months Ended July 31, 2017                                
                                 
Revenues from External Customers   $ 9,189,731     $ 6,490,820     $ -     $ 15,680,551  
                                 
Cost of Revenues     2,753,297       3,226,449       -       5,979,746  
                                 
Gross Profit     6,436,434       3,264,371       -       9,700,805  
                                 
Research & Development     699,106       -       -       699,106  
Selling, General & Administrative     2,165,601       1,979,436       596,931       4,741,968  
                                 
Total Operating Expenses     2,864,707       1,979,436       596,931       5,441,074  
                                 
Operating Income (Loss)     3,571,727       1,284,935       (596,931 )     4,259,731  
                                 
Other Income (Expense)                                
                                 
Other Income     204,653       261       -       204,914  
Interest (Expense) Income     (538,088 )     (214,674 )     256,332       (496,430 )
                                 
Total other income (expense)     (333,435 )     (214,413 )     256,332       (291,516 )
                                 
Income (Loss) before income taxes     3,238,292       1,070,522       (340,599 )     3,968,215  
                                 
Income tax benefit (expense)     3,513       -       -       3,513  
                                 
Net Income   $ 3,241,805     $ 1,070,522     $ (340,599 )   $ 3,971,728  
                                 
Supplemental Disclosures                                
                                 
Revenues from Intercompany Sales - eliminated from sales above     1,680,852       265,985       607,375       2,554,212  
                                 
Depreciation and Amortization     377,311       244,223       9,528       631,062  
                                 
Purchases of Long-lived Assets     2,541,716       94,874       12,470       2,649,060  

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Nine Months Ended July 31, 2016                                
                                 
Revenues from External Customers   $ 7,816,669     $ 6,983,805     $ -     $ 14,800,474  
                                 
Cost of Revenues     2,690,603       3,520,070       -       6,210,673  
                                 
Gross Profit     5,126,066       3,463,735       -       8,589,801  
                                 
Research & Development     708,146       -       -       708,146  
Selling, General & Administrative     1,905,381       2,180,426       362,202       4,448,009  
                                 
Total Operating Expenses     2,613,527       2,180,426       362,202       5,156,155  
                                 
Operating Income (Loss)     2,512,539       1,283,309       (362,202 )     3,433,646  
                                 
Other Income (Expense)                                
                                 
Other Income     149,990       5,787       -       155,777  
Interest Expense     (615,383 )     (223,931 )     222,805       (616,509 )
                                 
Total other income (expense)     (465,393 )     (218,144 )     222,805       (460,732 )
                                 
Income (Loss) before income taxes     2,047,146       1,065,165       (139,397 )     2,972,914  
                                 
Income tax benefit (expense)     -       -       -       -  
                                 
Net Income (Loss)   $ 2,047,146     $ 1,065,165     $ (139,397 )   $ 2,972,914  
                                 
Supplemental Disclosures                                
                                 
Revenues from Intercompany Sales - eliminated from sales above     643,294       178,132       362,875       1,184,301  
                                 
Depreciation and Amortization     247,235       255,848       9,631       512,714  
                                 
Purchases of Long-lived Assets     642,906       13,150       12,468       668,524  

 

Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the three and nine months ended July 31, 2017 and 2016 respectively: 

 

    USA     Europe     Australia     Total  
                                 
External Revenues by Geographic Locations                                
                                 
Three Months Ended July 31, 2017   $ 1,550,141     $ 2,942,365     $ 551,085     $ 5,043,591  
                                 
Three Months Ended July 31, 2016   $ 1,983,771     $ 1,970,478     $ 324,411     $ 4,278,660  
                                 
Nine Months Ended July 31, 2017   $ 6,825,815     $ 7,574,299     $ 1,280,437     $ 15,680,551  
                                 
Nine Months Ended July 31, 2016   $ 6,939,673     $ 6,733,926     $ 1,126,875     $ 14,800,474