Quarterly report pursuant to Section 13 or 15(d)

Segment Analysis

v3.20.1
Segment Analysis
6 Months Ended
Apr. 30, 2020
Segment Reporting [Abstract]  
Segment Analysis

NOTE 14 – SEGMENT ANALYSIS

 

We operate 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 “Service Segments”) operate as contractors and Coda Octopus Products operations are comprised primarily of product sales, rental of equipment and/or software and associated services (“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 (“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 in our Consolidated Financial Statements of October 31, 2019.

 

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 six months ended April 30, 2020 and 2019, respectively.

 

The Company’s reportable business segments operate in four geographic locations:

 

  Americas
  Europe
  Australia/Asia
  Middle East/Africa

 

Information concerning principal geographic areas is presented below according to the area where the activity has taken place for the three and six months ended April 30, 2020 and 2019 respectively:

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended April 30, 2020                                
                                 
Revenues from External Customers   $ 1,691,199     $ 1,598,019     $ -     $ 3,289,218  
                                 
Cost of Revenues     406,853       956,951       -       1,363,804  
                                 
Gross Profit     1,284,346       641,068       -       1,925,414  
                                 
Research & Development     442,696       270,945       -       713,641  
Selling, General & Administrative     692,177       527,039       313,994       1,533,210  
                                 
Total Operating Expenses     1,134,873       797,984       313,994       2,246,851  
                                 
Income (Loss) from Operations     149,473       (156,916 )     (313,994 )     (321,437 )
                                 
Other Expense (Income)                                
                                 
Other (Expense) Income     (327 )     16       -       (311 )
Interest Expense     (2,395 )     (3,959 )     (12,102 )     (18,456 )
                                 
Total Other Income (Expense)     (2,722 )     (3,943 )     (12,102 )     (18,767 )
                                 
Net Income (Loss) before Income Taxes     146,751       (160,859 )     (326,096 )     (340,204 )
                                 
Income Tax Benefit (Expense)                                
Current Tax Benefit (Expense)     (6,397 )     (4,045 )     45,268       34,826  
Deferred Tax (Expense)     (1,354 )     142,793       (101,141 )     40,298  
                                 
Total Income Tax (Expense)     (7,751 )     138,748       (55,873 )     75,124  
                                 
Net Income (Loss)   $ 139,000     $ (22,111 )   $ (381,969 )   $ (265,080 )
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 21,256,131     $ 14,231,702     $ 1,050,834     $ 36,538,667  
                                 
Total Liabilities   $ 2,907,719     $ 1,380,925     $ 921,492     $ 5,210,136  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 277,658     $ 4,687     $ 675,000     $ 957,345  
                                 
Depreciation and Amortization   $ 94,599     $ 2,745     $ 4,112     $ 101,456  
                                 
(Sales) Purchases of Long-lived Assets   $ (158,874 )   $ (8,441 )   $ 14,554     $ (152,761 )

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended April 30, 2019                                
                                 
Revenues from External Customers   $ 3,420,183     $ 3,363,089     $ -     $ 6,783,272  
                                 
Cost of Revenues     488,909       1,569,701       -       2,058,610  
                                 
Gross Profit     2,931,274       1,793,388       -       4,724,662  
                                 
Research & Development     558,579       64,665       121,983       745,227  
Selling, General & Administrative     743,801       611,059       341,822       1,696,682  
                                 
Total Operating Expenses     1,302,380       675,724       463,805       2,441,909  
                                 
Income (Loss) from Operations     1,628,894       1,117,664       (463,805 )     2,282,753  
                                 
Other Income (Expense)                                
                                 
Other Income     26,228       -       -       26,228  
Interest Expense     (3,392 )     (5,118 )     (15,837 )     (24,347 )
                                 
Total Other Income (Expense)     22,836       (5,118 )     (15,837 )     1,881  
                                 
Net Income (Loss) before Income Taxes     1,651,730       1,112,546       (479,642 )     2,284,634  
                                 
Current Tax Benefit     18,375       (9,939 )     (8,412 )     24  
Deferred tax (Expense)     (144,381 )     (117,529 )     (49,254 )     (311,164 )
                                 
Income benefit (expense)     (126,006 )     (127,468 )     (57,666 )     (311,140 )
                                 
Net Income (Loss)   $ 1,525,724     $ 985,078     $ (537,308 )   $ 1,973,494  
                                 
Supplemental Disclosures                                
                                 
                                 
Total Assets   $ 17,403,981     $ 12,980,885     $ 1,564,066     $ 31,948,932  
                                 
Total Liabilities   $ 1,357,163     $ 923,248     $ 1,528,494     $ 3,808,905  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 361,604     $ 173,723     $ 675,000     $ 1,210,327  
                                 
Depreciation and Amortization   $ 134,516     $ 61,388     $ 3,790     $ 199,694  
                                 
Purchases of Long-lived Assets   $ 1,149,245     $ 31,334     $ -     $ 1,180,579  

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Six Months Ended April 30, 2020                                
                                 
Revenues from External Customers   $ 5,324,011     $ 4,646,186     $ -     $ 9,970,197  
                                 
Cost of Revenues     1,062,530       2,707,813       -       3,770,343  
                                 
Gross Profit     4,261,481       1,938,373       -       6,199,854  
                                 
Research & Development     999,425       477,383       165,098       1,641,906  
Selling, General & Administrative     1,560,175       1,163,335       701,378       3,424,888  
                                 
Total Operating Expenses     2,559,600       1,640,718       866,476       5,066,794  
                                 
Income (Loss) from Operations     1,701,881       297,655       (866,476 )     1,133,060  
                                 
Other Income (Expense)                                
                                 
Other Income     12,497       16       -       12,513  
Interest (Expense)     (5,627 )     (7,641 )     (24,802 )     (38,070 )
                                 
Total Other Income (Expense)     6,870       (7,625 )     (24,802 )     (25,557 )
                                 
Net Income (Loss) before Income Taxes     1,708,751       290,030       (891,278 )     1,107,503  
                                 
Income Tax Benefit (Expense)                                
Current Tax Benefit (Expense)     19,436       -       (7,957 )     11,479  
Deferred Tax (Expense)     (79,493 )     130,558       (88,354 )     (37,289 )
                                 
Total Income Tax (Expense)     (60,057 )     130,558       (96,311 )     (25,810 )
                                 
Net Income (Loss)   $ 1,648,694     $ 420,588     $ (987,589 )   $ 1,081,693  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 21,256,131     $ 14,231,702     $ 1,050,834     $ 36,538,667  
                                 
Total Liabilities   $ 2,907,719     $ 1,380,925     $ 921,492     $ 5,210,136  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 580,480     $ 105,216     $ 1,350,000     $ 2,035,696  
                                 
Depreciation and Amortization   $ 277,592     $ 46,425     $ 9,403     $ 333,420  
                                 
Purchases of Long-lived Assets   $ 440,727     $ 1,152     $ 48,519     $ 490,398  

  

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Six Months Ended April 30, 2019                                
                                 
Revenues from External Customers   $ 6,249,719     $ 6,292,061     $ -     $ 12,541,780  
                                 
Cost of Revenues     1,206,215       3,077,831       -       4,284,046  
                                 
Gross Profit     5,043,504       3,214,230       -       8,257,734  
                                 
Research & Development     1,030,004       97,214       189,335       1,316,553  
Selling, General & Administrative     1,498,461       1,205,105       612,391       3,315,957  
                                 
Total Operating Expenses     2,528,465       1,302,319       801,726       4,632,510  
                                 
Income (Loss) from Operations     2,515,039       1,911,911       (801,726 )     3,625,224  
                                 
Other Income (Expense)                                
                                 
Other Income     59,069       -       -       59,069  
Interest Expense     (5,866 )     (9,699 )     (33,843 )     (49,408 )
                                 
Total Other Income (Expense)     53,203       (9,699 )     (33,843 )     9,661  
                                 
Net Income (Loss) before Income Taxes     2,568,242       1,902,212       (835,569 )     3,634,885  
                                 
Current Tax Benefit     25,668       34,985       17,338       77,991  
Deferred tax (Expense)     (151,305 )     (233,396 )     (115,668 )     (500,369 )
                                 
Income benefit (expense)     (125,637 )     (198,411 )     (98,330 )     (422,378 )
                                 
Net Income (Loss)   $ 2,442,605     $ 1,703,801     $ (933,899 )   $ 3,212,507  
                                 
Supplemental Disclosures                                
                                 
                                 
Total Assets   $ 17,403,981     $ 12,980,885     $ 1,564,066     $ 31,948,932  
                                 
Total Liabilities   $ 1,357,163     $ 923,248     $ 1,528,494     $ 3,808,905  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 908,467     $ 228,929     $ 1,350,000     $ 2,487,396  
                                 
Depreciation and Amortization   $ 259,124     $ 127,678     $ 7,610     $ 394,412  
                                 
Purchases of Long-lived Assets   $ 2,065,268     $ 34,446     $ -     $ 2,099,714  

  

    For the Three Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
                         
Americas                        
Equipment Sales   $ 86,787     $ -     $ 86,787  
Equipment Rentals     36,269       -       36,269  
Software Sales     -       -       -  
Engineering Parts     -       847,224       847,224  
Services     390,582       162,885       553,467  
Europe                        
Equipment Sales     69,563       -       69,563  
Equipment Rentals     292,839       -       292,839  
Software Sales     7,155       -       7,155  
Engineering Parts     -       587,910       587,910  
Services     150,433       -       150,433  
Australia/Asia                        
Equipment Sales     310,338       -       310,338  
Equipment Rentals     175,219       -       175,219  
Software Sales     8,591       -       8,591  
Services     126,238       -       126,238  
Middle East & Africa                        
Equipment Sales     16,170       -       16,170  
Equipment Rentals     592       -       592  
Software Sales     -       -       -  
Services     20,423       -       20,423  
                         
Total Net Sales   $ 1,691,199     $ 1,598,019     $ 3,289,218  

 

    For the Three Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Geographic Area                        
Americas   $ 513,638     $ 1,010,109     $ 1,523,747  
Europe     519,990       587,910       1,107,900  
Australia/Asia     620,386       -       620,386  
Middle East & Africa     37,185       -       37,185  
                         
Total Net Sales   $ 1,691,199     $ 1,598,019     $ 3,289,218  

  

    For the Three Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Product Line                        
Equipment Sales   $ 482,858     $ -     $ 482,858  
Equipment Rentals     504,919       -       504,919  
Software Sales     15,746       -       15,746  
Engineering Parts     -       1,435,134       1,435,134  
Services     687,676       162,885       850,561  
                         
Total Net Sales   $ 1,691,199     $ 1,598,019     $ 3,289,218  

 

    For the Three Months Ended April 30, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
                         
Americas                        
Equipment Sales   $ 19,528     $ 54,536     $ 74,064  
Equipment Rentals     171,544       -       171,544  
Software Sales     7,250       -       7,250  
Engineering Parts     -       2,377,313       2,377,313  
Services     736,612       563,518       1,300,130  
Europe                        
Equipment Sales     446,896       13,302       460,198  
Equipment Rentals     491,118       -       491,118  
Software Sales     59,069       -       59,069  
Engineering Parts     -       354,421       354,421  
Services     337,467       -       337,467  
Australia/Asia                        
Equipment Sales     867,019       -       867,019  
Equipment Rentals     -       -       -  
Software Sales     58,289       -       58,289  
Services     115,666       -       115,666  
Middle East & Africa                        
Equipment Sales     -       -       -  
Equipment Rentals     -       -       -  
Software Sales     16,578       -       16,578  
Services     93,147       -       93,147  
                         
Total Net Sales   $ 3,420,183     $ 3,363,089     $ 6,783,272  

 

    For the Three Months Ended April 30, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Geographic Area                        
Americas   $ 934,934     $ 2,995,366     $ 3,930,300  
Europe     1,334,551       367,723       1,702,273  
Australia/Asia     1,040,974       -       1,040,974  
Middle East & Africa     109,724       -       109,724  
                         
Total Net Sales   $ 3,420,183     $ 3,363,089     $ 6,783,272  

 

    For the Three Months Ended April 30, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Product Line                        
Equipment Sales   $ 1,333,444     $ 67,838     $ 1,401,281  
Equipment Rentals     662,662       -       662,662  
Software Sales     141,185       -       141,185  
Engineering Parts     -       2,731,734       2,731,734  
Services     1,282,892       563,518       1,846,410  
                         
Total Net Sales   $ 3,420,183     $ 3,363,089     $ 6,783,272  

  

    For the Six Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                  
                   
Americas                        
Equipment Sales   $ 421,175     $ -     $ 421,175  
Equipment Rentals     81,338       -       81,338  
Software Sales     7,250       -       7,250  
Engineering Parts     -       2,493,597       2,493,597  
Services     545,207       652,416       1,197,623  
Europe                        
Equipment Sales     407,710       -       407,710  
Equipment Rentals     345,483       -       345,483  
Software Sales     109,681       -       109,681  
Engineering Parts     -       1,494,765       1,494,765  
Services     276,133       5,407       281,540  
Australia/Asia                        
Equipment Sales     2,338,648       -       2,338,648  
Equipment Rentals     401,151       -       401,151  
Software Sales     128,590       -       128,590  
Services     173,357       -       173,357  
Middle East & Africa                        
Equipment Sales     38,244       -       38,244  
Equipment Rentals     592       -       592  
Software Sales     -       -       -  
Services     49,452       -       49,452  
                         
Total Net Sales   $ 5,324,011     $ 4,646,186     $ 9,970,197  

 

    For the Six Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Geographic Area                        
Americas   $ 1,054,970     $ 3,146,013     $ 4,200,983  
Europe     1,139,007       1,500,172       2,639,179  
Australia/Asia     3,041,746       -       3,041,746  
Middle East & Africa     88,288       -       88,288  
                         
Total Net Sales   $ 5,324,011     $ 4,646,186     $ 9,970,197  

 

    For the Six Months Ended April 30, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Product Line                        
Equipment Sales   $ 3,205,777     $ -     $ 3,205,777  
Equipment Rentals     828,564       -       828,564  
Software Sales     245,521       -       245,521  
Engineering Parts     -       3,988,363       3,988,363  
Services     1,044,149       657,823       1,701,972  
                         
Total Net Sales   $ 5,324,011     $ 4,646,186     $ 9,970,197  

 

    For the Six Months Ended April 30, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Disaggregation of Total Net Sales                        
                         
Americas                        
Equipment Sales   $ 67,078     $ 57,545     $ 124,623  
Equipment Rentals     225,027       -       225,027  
Software Sales     7,250       -       7,250  
Engineering Parts     -       4,567,505       4,567,505  
Services     820,139       879,670       1,699,809  
Europe                        
Equipment Sales     770,605       110,979       881,584  
Equipment Rentals     651,507       -       651,507  
Software Sales     148,644       -       148,644  
Engineering Parts     -       676,363       676,363  
Services     478,019       -       478,019  
Australia/Asia                        
Equipment Sales     2,059,338       -       2,059,338  
Equipment Rentals     257,918       -       257,918  
Software Sales     201,878       -       201,878  
Services     339,041       -       339,041  
Middle East & Africa                        
Equipment Sales     10,473       -       10,473  
Equipment Rentals     36,130       -       36,130  
Software Sales     37,565       -       37,565  
Services     139,107       -       139,107  
                         
Total Net Sales   $ 6,249,719     $ 6,292,061     $ 12,541,780  

 

    For the Six Months Ended April 30, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Geographic Area                        
Americas   $ 1,119,494     $ 5,504,719     $ 6,624,213  
Europe     2,048,776       787,342       2,836,117  
Australia/Asia     2,858,175       -       2,858,175  
Middle East & Africa     223,274       -       223,274  
                         
Total Net Sales   $ 6,249,719     $ 6,292,061     $ 12,541,780  

  

    For the Six Months Ended April 30, 2019  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
Total Net Sales by Product Line                        
Equipment Sales   $ 2,907,495     $ 168,524     $ 3,076,018  
Equipment Rentals     1,170,582       -       1,170,582  
Software Sales     395,336       -       395,336  
Engineering Parts     -       5,243,868       5,243,868  
Services     1,776,306       879,670       2,655,976  
                         
Total Net Sales   $ 6,249,719     $ 6,292,061     $ 12,541,780