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 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.
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
assets and operating balances by reportable segment as of and for the three months ended January 31, 2018 and 2017 respectively.
The Company’s reportable business
segments operate in three geographic locations. Those geographic locations are:
* United States
* Europe
* Australia
Information concerning principal
geographic areas is presented below according to the area where the activity has taken place for the three months ended January
31, 2018 and 2017 respectively:
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from External Customers |
|
$ |
2,042,942 |
|
|
$ |
1,007,615 |
|
|
$ |
- |
|
|
$ |
3,050,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
430,131 |
|
|
|
515,976 |
|
|
|
- |
|
|
|
946,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
1,612,811 |
|
|
|
491,639 |
|
|
|
- |
|
|
|
2,104,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
442,274 |
|
|
|
228,265 |
|
|
|
- |
|
|
|
670,539 |
|
Selling, General & Administrative |
|
|
577,565 |
|
|
|
630,874 |
|
|
|
297,318 |
|
|
|
1,505,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
1,019,839 |
|
|
|
859,139 |
|
|
|
297,318 |
|
|
|
2,176,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
592,972 |
|
|
|
(367,500 |
) |
|
|
(297,318 |
) |
|
|
(71,846 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
6,655 |
|
|
|
- |
|
|
|
- |
|
|
|
6,655 |
|
Interest (Expense) |
|
|
(4,419 |
) |
|
|
(14,949 |
) |
|
|
(83,380 |
) |
|
|
(102,748 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
2,236 |
|
|
|
(14,949 |
) |
|
|
(83,380 |
) |
|
|
(96,093 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before income taxes |
|
|
595,208 |
|
|
|
(382,449 |
) |
|
|
(380,698 |
) |
|
|
(167,939 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
595,208 |
|
|
$ |
(382,449 |
) |
|
$ |
(380,698 |
) |
|
$ |
(167,939 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
12,419,192 |
|
|
$ |
11,095,135 |
|
|
$ |
5,449,334 |
|
|
$ |
28,963,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
862,542 |
|
|
|
1,405,271 |
|
|
|
7,126,250 |
|
|
|
9,394,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
|
471,218 |
|
|
|
10,189 |
|
|
|
675,000 |
|
|
|
1,156,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
137,518 |
|
|
|
79,715 |
|
|
|
2,937 |
|
|
|
220,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
|
201,917 |
|
|
|
43,905 |
|
|
|
- |
|
|
|
245,822 |
|
|
|
Marine Technology Business (Products) |
|
|
Marine Engineering Business (Services) |
|
|
Overhead |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from External Customers |
|
$ |
2,450,599 |
|
|
$ |
2,907,604 |
|
|
$ |
- |
|
|
$ |
5,358,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
730,021 |
|
|
|
1,253,025 |
|
|
|
- |
|
|
|
1,983,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
1,720,578 |
|
|
|
1,654,579 |
|
|
|
- |
|
|
|
3,375,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
251,230 |
|
|
|
- |
|
|
|
- |
|
|
|
251,230 |
|
Selling, General & Administrative |
|
|
574,648 |
|
|
|
686,411 |
|
|
|
144,829 |
|
|
|
1,405,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
825,878 |
|
|
|
686,411 |
|
|
|
144,829 |
|
|
|
1,657,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
894,700 |
|
|
|
968,168 |
|
|
|
(144,829 |
) |
|
|
1,718,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
49,416 |
|
|
|
- |
|
|
|
- |
|
|
|
49,416 |
|
Interest (Expense) |
|
|
(350,334 |
) |
|
|
(124,221 |
) |
|
|
279,061 |
|
|
|
(195,494 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(300,918 |
) |
|
|
(124,221 |
) |
|
|
279,061 |
|
|
|
(146,078 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
593,782 |
|
|
|
843,947 |
|
|
|
134,232 |
|
|
|
1,571,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
593,782 |
|
|
$ |
843,947 |
|
|
$ |
134,232 |
|
|
$ |
1,571,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
10,586,262 |
|
|
$ |
12,249,349 |
|
|
$ |
506,050 |
|
|
$ |
23,341,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
843,107 |
|
|
|
1,716,788 |
|
|
|
9,723,632 |
|
|
|
12,283,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from Intercompany Sales - eliminated from sales above |
|
|
172,853 |
|
|
|
59,899 |
|
|
|
118,875 |
|
|
|
351,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
101,463 |
|
|
|
71,725 |
|
|
|
3,211 |
|
|
|
176,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of Long-lived Assets |
|
|
1,645,460 |
|
|
|
22,181 |
|
|
|
12,470 |
|
|
|
1,680,111 |
|
|
|
USA |
|
|
Europe |
|
|
Australia |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External Revenues by Geographic Locations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, 2018 |
|
$ |
1,087,626 |
|
|
$ |
1,822,036 |
|
|
$ |
140,895 |
|
|
$ |
3,050,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, 2017 |
|
$ |
2,749,768 |
|
|
$ |
2,017,036 |
|
|
$ |
591,399 |
|
|
$ |
5,358,203 |
|
|