Quarterly report pursuant to Section 13 or 15(d)

Segment Analysis

v3.20.4
Segment Analysis
3 Months Ended
Jan. 31, 2021
Segment Reporting [Abstract]  
Segment Analysis

NOTE 14 -SEGMENT ANALYSIS

 

Based on the fundamental difference between the types of our offering, products versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Segment”) operations are comprised primarily of sale of underwater technology sonar solutions, products for underwater operations including hardware and software; and rental of solutions and products to the underwater market. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provides 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 disclosed in the tables below for informational purposes, but which have been eliminated in our financial statements.

 

The following table summarizes segment asset and operating balances by reportable segment as of and for the three months ended January 31, 2021 and 2020, respectively.

 

The Company’s reportable business segments sell their goods and services in four geographic locations:

 

Americas
   
Europe
   
Australia/Asia
   
Middle East/Africa

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended January 31, 2021                                
                                 
Revenues from External Customers   $ 3,748,279     $ 1,302,180     $ -     $ 5,050,459  
                                 
Cost of Revenues     894,275       841,262       -       1,735,537  
                                 
Gross Profit     2,854,004       460,918       -       3,314,922  
                                 
Research & Development     441,744       141,395       -       583,139  
Selling, General & Administrative     733,825       567,559       511,982       1,813,366  
                                 
Total Operating Expenses     1,175,569       708,954       511,982       2,396,505  
                                 
Income (Loss) from Operations     1,678,435       (248,036 )     (511,982 )     918,417  
                                 
Other Income (Expense)                                
Other Income     2,036       18       -       2,054  
Funding from Paycheck Protection Program     -       89,971       -       89,971  
Interest Expense     (2,253 )     (5,151 )     (7,110 )     (14,514 )
                                 
Total Other Income (Expense)     (217 )     84,838       (7,110 )     77,511  
                                 
Net Income (Loss) before Income Taxes     1,678,218       (163,198 )     (519,092 )     995,928  
                                 
Income Tax Benefit (Expense)                                
Current Tax Benefit     12,653       -       12,072       24,725  
Deferred Tax Benefit     (11,155 )     152,086       (32,740 )     108,191  
                                 
Total Income Tax Benefit (Expense)     1,498       152,086       (20,668 )     132,916  
                                 
Net Income (Loss)   $ 1,679,716     $ (11,112 )   $ (539,760 )   $ 1,128,844  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 24,767,757     $ 14,362,811     $ 1,224,954     $ 40,355,522  
                                 
Total Liabilities   $ 1,573,260     $ 1,436,624     $ 720,466     $ 3,730,350  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 370,629     $ 49,201     $ 675,000     $ 1,094,830  
                                 
Depreciation and Amortization   $ 312,122     $ 47,645     $ 6,416     $ 366,183  
                                 
Purchases of Long-lived Assets   $ 399,975     $ 4,177     $ 4,992     $ 409,144  

 

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months ended January 31, 2020                                
                                 
Revenues from External Customers   $ 3,632,812     $ 3,048,167     $ -     $ 6,680,979  
                                 
Cost of Revenues     655,677       1,750,862       -       2,406,539  
                                 
Gross Profit     2,977,135       1,297,305       -       4,274,440  
                                 
Research & Development     556,729       206,438       165,098       928,265  
Selling, General & Administrative     867,998       636,296       387,384       1,891,678  
                                 
Total Operating Expenses     1,424,727       842,734       552,482       2,819,943  
                                 
Income (Loss) from Operations     1,552,408       454,571       (552,482 )     1,454,497  
                                 
Other Income (Expense)                                
Other Income     12,824       -       -       12,824  
Interest Expense     (3,232 )     (3,682 )     (12,700 )     (19,614 )
                                 
Total Other Income (Expense)     9,592       (3,682 )     (12,700 )     (6,790 )
                                 
Net Income (Loss) before Income Taxes     1,562,000       450,889       (565,182 )     1,447,707  
                                 
Current Tax Benefit (Expense)     25,833       4,045       (53,225 )     (23,347 )
Deferred Tax Benefit (Expense)     (78,139 )     (12,235 )     12,787       (77,587 )
                                 
Total Income Tax Expense     (52,306 )     (8,190 )     (40,438 )     (100,934 )
                                 
Net Income (Loss)   $ 1,509,694     $ 442,699     $ (605,620 )   $ 1,346,773  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 20,821,310     $ 14,520,371     $ 1,141,789     $ 36,483,470  
                                 
Total Liabilities   $ 1,835,184     $ 1,315,378     $ 1,273,611     $ 4,424,173  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 302,822     $ 100,529     $ 675,000     $ 1,078,351  
                                 
Depreciation and Amortization   $ 182,993     $ 43,680     $ 5,291     $ 231,964  
                                 
Purchases of Long-lived Assets   $ 599,601     $ 9,593     $ 33,965     $ 643,159  

 

      For the Three Months Ended January 31, 2021  
      Marine     Marine        
      Technology     Engineering     Grand  
      Business     Business     Total  
Disaggregation of Total Net Sales                  
                     
Americas                          
  Equipment Sales   $ 252,625     $ -     $ 252,625  
  Equipment Rentals     48,925       -       48,925  
  Software Sales     -       -       -  
  Engineering Parts     213,956       291,565       505,521  
  Services     33,772       224,876       258,648  
Europe                          
  Equipment Sales     894,104       220,957       1,115,061  
  Equipment Rentals     153,109       -       153,109  
  Software Sales     38,086       -       38,086  
  Engineering Parts     -       564,782       564,782  
  Services     39,813       -       39,813  
Australia/Asia                          
  Equipment Sales     1,646,758       -       1,646,758  
  Equipment Rentals     132,329       -       132,329  
  Software Sales     187,136       -       187,136  
  Services     41,987       -       41,987  
Middle East & Africa                        
  Equipment Sales     -       -       -  
  Equipment Rentals     -       -       -  
  Software Sales     -       -       -  
  Services     65,679       -       65,679  
                           
  Total Net Sales   $ 3,748,279     $ 1,302,180     $ 5,050,459  

 

        For the Three Months Ended January 31, 2021  
        Marine       Marine          
        Technology       Engineering       Grand  
        Business       Business       Total  
Total Net Sales by Geographic Area                        
  Americas   $ 549,278     $ 516,441     $ 1,065,719  
  Europe     1,125,112       785,739       1,910,851  
  Australia/Asia     2,008,210       -       2,008,210  
  Middle East & Africa     65,679       -       65,679  
                           
  Total Net Sales   $ 3,748,279     $ 1,302,180     $ 5,050,459  

 

        For the Three Months Ended January 31, 2021  
        Marine       Marine          
        Technology       Engineering       Grand  
        Business       Business       Total  
Total Net Sales by Product Line                        
  Equipment Sales   $ 2,793,487     $ 220,957     $ 3,014,444  
  Equipment Rentals     334,363       -       334,363  
  Software Sales     225,222       -       225,222  
  Engineering Parts     213,956       856,347       1,070,303  
  Services     181,251       224,876       406,127  
                           
  Total Net Sales   $ 3,748,279     $ 1,302,180     $ 5,050,459  

 

      For the Three Months Ended January 31, 2020  
      Marine     Marine        
      Technology     Engineering     Grand  
      Business     Business     Total  
Disaggregation of Total Net Sales                        
                           
Americas                          
  Equipment Sales   $ 334,388     $ -     $ 334,388  
  Equipment Rentals     45,069       -       45,069  
  Software Sales     7,250       -       7,250  
  Engineering Parts     -       1,646,374       1,646,374  
  Services     154,625       489,531       644,156  
Europe                          
  Equipment Sales     338,147       -       338,147  
  Equipment Rentals     52,644       -       52,644  
  Software Sales     102,526       -       102,526  
  Engineering Parts     -       906,855       906,855  
  Services     125,700       5,407       131,107  
Australia/Asia                          
  Equipment Sales     2,028,310       -       2,028,310  
  Equipment Rentals     225,932       -       225,932  
  Software Sales     119,999       -       119,999  
  Services     47,119       -       47,119  
Middle East & Africa                          
  Equipment Sales     22,074       -       22,074  
  Equipment Rentals     -       -       -  
  Software Sales     -       -       -  
  Services     29,029       -       29,029  
                           
  Total Net Sales   $ 3,632,812     $ 3,048,167     $ 6,680,979  

 

 

      For the Three Months Ended January 31, 2020  
      Marine     Marine        
      Technology     Engineering     Grand  
      Business     Business     Total  
Total Net Sales by Geographic Area                        
  Americas   $ 541,332     $ 2,135,905     $ 2,677,237  
  Europe     619,017       912,262       1,531,279  
  Australia/Asia     2,421,360       -       2,421,360  
  Middle East & Africa     51,103       -       51,103  
                           
  Total Net Sales   $ 3,632,812     $ 3,048,167     $ 6,680,979  

 

        For the Three Months Ended January 31, 2020  
        Marine       Marine          
        Technology       Engineering       Grand  
        Business       Business       Total  
Total Net Sales by Product Line                        
  Equipment Sales   $ 2,722,919     $ -     $ 2,722,919  
  Equipment Rentals     323,645       -       323,645  
  Software Sales     229,775       -       229,775  
  Engineering Parts     -       2,553,229       2,553,229  
  Services     356,473       494,938       851,411  
                           
  Total Net Sales   $ 3,632,812     $ 3,048,167     $ 6,680,979