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 |
|
|