Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.22.4
SEGMENT ANALYSIS
 3 Months Ended
Jan. 31, 2023
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 14 – SEGMENT ANALYSIS

 

Based on the fundamental difference in the types of offering, products and solutions versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Business” or “Products Segment”) operations are comprised primarily of sale and/or rental of underwater technology sonar solutions, products for underwater operations including hardware and software and support services and our diver management system. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provide 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 for the three months ended January 31, 2023 and 2022, 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, 2023 and October 31, 2022

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended January 31, 2023                                
                                 
Net Revenues   $ 3,824,159     $ 1,772,125     $ -     $ 5,596,284  
                                 
Cost of Revenues     1,064,244       779,035       -       1,843,279  
                                 
Gross Profit     2,759,915       993,090       -       3,753,005  
                                 
Research & Development     438,308       6,150       -       444,458  
Selling, General & Administrative     661,759       646,310       654,382       1,962,451  
                                 
Total Operating Expenses     1,100,067       652,460       654,382       2,406,909  
                                 
Income (Loss) from Operations     1,659,848       340,630       (654,382 )     1,346,096  
                                 
Other Income                                
Other Income     15,020       745       -       15,765  
                                 
Total Other Income     15,020       745       -       15,765  
                                 
Income (Loss) before Income Taxes     1,674,868       341,375       (654,382 )     1,361,861  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     (18,873 )     (19,856

)

  38,718     (11 )
Deferred Tax (Expense) Benefit     -       -       36,007       36,007  
                                 
Total Income Tax (Expense) Benefit     (18,873 )     (19,856 )     74,725     35,996
                                 
Net Income (Loss)   $ 1,655,995     $ 321,519     $ (579,657 )   $ 1,397,857  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 36,176,835     $ 13,377,560     $ 949,710     $ 50,504,105  
                                 
Total Liabilities   $ 2,694,766     $ 758,160     $ 480,710     $ 3,933,636  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 829,674     $ 45,707     $ 680,000     $ 1,555,381  
                                 
Depreciation and Amortization   $ 128,838     $ 24,910     $ 10,259     $ 164,007  
                                 
Purchases of Long-lived Assets   $ 79,642     $ 4,780     $ 21,485     $ 105,907  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2023 and October 31, 2022

 

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 (Expense) 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, 2023 and October 31, 2022