Quarterly report pursuant to Section 13 or 15(d)

Segment Analysis

v3.10.0.1
Segment Analysis
9 Months Ended
Jul. 31, 2018
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 (together “Marine Engineering Business” or “Services Segment”) operate as contractors, and the balance of our operations are comprised of product sales (“Marine Technology Business” or “Products Segment”).

 

Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs (overheads).

 

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 in our Consolidated Financial Statements of October 31, 2017.

 

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 and nine months ended July 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 according to the area where the activity has taken place for the three and nine months ended July 31, 2018 and 2017, respectively is presented below:

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2018                                
                                 
Revenues from External Customers   $ 3,926,491     $ 1,851,982     $ -     $ 5,778,473  
                                 
Cost of Revenues     650,669       933,531       -       1,584,200  
                                 
Gross Profit     3,275,822       918,451       -       4,194,273  
                                 
Research & Development     440,202       90,190       -       530,392  
Selling, General & Administrative     723,155       566,692       350,995       1,640,842  
                                 
Total Operating Expenses     1,163,357       656,882       350,995       2,171,234  
                                 
Income (Loss) from Operations     2,112,465       261,569       (350,995 )     2,023,039  
                                 
Other Income (Expense)                                
                                 
Other Income     3,941       31       -       3,972  
Interest Expense     (2,480 )     (15,802 )     (11,139 )     (29,421 )
                                 
Total Other Income (Expense)     1,461       (15,771 )     (11,139 )     (25,449 )
                                 
Net Income (Loss) before income taxes     2,113,926       245,798       (362,134 )     1,997,590  
                                 
Income tax Refund     -       -       20       20  
                                 
Net Income (Loss)   $ 2,113,926     $ 245,798     $ (362,114 )   $ 1,997,610  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 14,016,131     $ 11,378,558     $ 553,927     $ 25,948,616  
                                 
Total Liabilities   $ 865,138     $ 1,660,291     $ 1,891,374     $ 4,416,803  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 44,180     $ 183,800     $ 675,000     $ 902,980  
                                 
Depreciation and Amortization   $ 137,426     $ 66,435     $ 5,728     $ 209,589  
                                 
Purchases of Long-lived Assets   $ 232,575     $ (6,122 )   $ 30,667     $ 257,120  

  

    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  
                                 
Income (Loss) from Operations     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 )
                                 
Net Income (Loss) before income taxes     1,486,915       22,956       (388,582 )     1,121,289  
                                 
Income Refund     3,513       -       -       3,513  
                                 
Net Income (Loss)   $ 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  
                         
Nine Months Ended July 31, 2018                                
                                 
Revenues from External Customers   $ 8,142,724     $ 4,212,702     $ -     $ 12,355,426  
                                 
Cost of Revenues     1,298,022       2,173,143       -       3,471,165  
                                 
Gross Profit     6,844,702       2,039,559       -       8,884,261  
                                 
Research & Development     1,385,994       455,414       -       1,841,408  
Selling, General & Administrative     2,150,168       1,813,357       1,208,704       5,172,229  
                                 
Total Operating Expenses     3,536,162       2,268,771       1,208,704       7,013,637  
                                 
Income (Loss) from Operations     3,308,540       (229,212 )     (1,208,704 )     1,870,624  
                                 
Other Income (Expense)                                
                                 
Other Income     92,514       2,128       -       94,642  
Interest (Expense) Income     (9,289 )     (45,503 )     (158,118 )     (212,910 )
                                 
Total Other Income (Expense)     83,225       (43,375 )     (158,118 )     (118,268 )
                                 
Net Income (Loss) before income taxes     3,391,765       (272,587 )     (1,366,822 )     1,752,356  
                                 
Income Refund (expense)     (6,596 )     -       6,586       (10 )
                                 
Net Income (Loss)   $ 3,385,169     $ (272,587 )   $ (1,360,236 )   $ 1,752,346  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 14,016,131     $ 11,378,558     $ 553,927     $ 25,948,616  
                                 
Total Liabilities   $ 865,138     $ 1,660,291     $ 1,891,374     $ 4,416,803  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 831,352     $ 196,103     $ 2,025,000     $ 3,052,455  
                                 
Depreciation and Amortization   $ 374,076     $ 218,649     $ 12,920     $ 605,645  
                                 
Purchases of Long-lived Assets   $ 486,604     $ 43,839     $ 55,452     $ 585,895  

 

    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  
                                 
Income (Loss) from Operations     3,571,727       1,284,935       -596,931       4,259,731  
                                 
Other Income (Expense)                                
                                 
Other Income     204,653       261       -       204,914  
Interest Expense     (538,088 )     (214,674 )     256,332       (496,430 )
                                 
Total Other Income (expense)     (333,435 )     (214,413 )     256,332       (291,516 )
                                 
Income before income taxes     3,238,292       1,070,522       (340,599 )     3,968,215  
                                 
Income Refund (expense)     3,513       -       -       3,513  
                                 
Net Income   $ 3,241,805     $ 1,070,522     $ (340,599 )   $ 3,971,728  
                                 
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   $ 1,680,852     $ 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  

 

    USA     Europe     Australia     Total  
                         
External Revenues by Geographic Locations                                
                                 
Three Months Ended July 31, 2018   $ 2,060,203     $ 3,718,877     $ (607 )   $ 5,778,473  
                                 
Three Months Ended July 31, 2017   $ 1,550,141     $ 2,942,364     $ 551,085     $ 5,043,590  
                                 
Nine Months Ended July 31, 2018   $ 5,082,194     $ 7,017,581     $ 255,651     $ 12,355,426  
                                 
Nine Months Ended July 31, 2017   $ 6,825,815     $ 7,574,299     $ 1,280,437     $ 15,680,551