Quarterly report pursuant to Section 13 or 15(d)

SEGMENT ANALYSIS

v3.21.2
SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 2021
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 -SEGMENT ANALYSIS

 

Based on the fundamental difference between the types of our offerings 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 along with associated support services. 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 and nine months ended July 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

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2021                                
                                 
Revenues from External Customers   $ 3,845,051     $ 1,982,324     $ -     $ 5,827,375  
                                 
Cost of Revenues     545,243       1,069,723       -       1,614,966  
                                 
Gross Profit     3,299,808       912,601       -       4,212,409  
                                 
Research & Development     540,553       135,213       -       675,766  
Selling, General & Administrative     860,539       616,378       728,313       2,205,230  
                                 
Total Operating Expenses     1,401,092       751,591       728,313       2,880,996  
                                 
Income (Loss) from Operations     1,898,716       161,010       (728,313 )     1,331,413  
                                 
Other Income (Expense)                                
Other Income     3,554       17       -       3,571  
Funding from Paycheck Protection Program     -       -       -       -  
Interest Expense     (2,718 )     (5,863 )     (6,155 )     (14,736 )
                                 
Total Other Income (Expense)     836       (5,846 )     (6,155 )     (11,165 )
                                 
Income (Loss) before Income Taxes     1,899,552       155,164       (734,468 )     1,320,248  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit     157,333       260,996       -     418,329  
Deferred Tax (Expense) Benefit     (338,098 )     108,141       12,466       (217,491 )
                                 
Total Income Tax (Expense) Benefit     (180,765 )     369,137       12,466       200,838  
                                 
Net Income (Loss)   $ 1,718,787     $ 524,301     $ (722,002 )   $ 1,521,086  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 28,820,472     $ 14,608,555     $ 934,192     $ 44,363,219  
                                 
Total Liabilities   $ 2,159,921     $ 844,816     $ 379,474     $ 3,384,211  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 492,579     $ 44,372     $ 675,000     $ 1,211,951  
                                 
Depreciation and Amortization   $ 195,103     $ 24,590     $ 7,952     $ 227,645  
                                 
Purchases of Long-lived Assets   $ 201,198     $ 7,655     $ 30,584     $ 239,437  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Three Months Ended July 31, 2020                                
                                 
Revenues from External Customers   $ 3,053,070     $ 2,342,966     $ -     $ 5,396,036  
                                 
Cost of Revenues     653,117       1,123,751       -       1,776,868  
                                 
Gross Profit     2,399,953       1,219,215       -       3,619,168  
                                 
Research & Development     394,332       352,625       25,684       772,641  
Selling, General & Administrative     496,772       515,547       513,150       1,525,469  
                                 
Total Operating Expenses     891,104       868,172       538,834       2,298,110  
                                 
Income (Loss) from Operations     1,508,849       351,043       (538,834 )     1,321,058  
                                 
Other Income (Expense)                                
Other Income     3,745       126       -       3,871  
Interest Expense     (1,718 )     (4,672 )     (10,190 )     (16,580 )
                                 
Total Other Income (Expense)     2,027       (4,546 )     (10,190 )     (12,709 )
                                 
Income (Loss) before Income Taxes     1,510,876       346,497       (549,024 )     1,308,349  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     5,532       -       (3,948 )     1,584  
Deferred Tax (Expense) Benefit     (236,356 )     15,155       (65,979 )     (287,180 )
                                 
Total Income Tax (Expense) Benefit     (230,824 )     15,155       (69,927 )     (285,596 )
                                 
Net Income (Loss)   $ 1,280,052     $ 361,652     $ (618,951 )   $ 1,022,753  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 22,149,613     $ 14,439,917     $ 678,515     $ 37,268,045  
                                 
Total Liabilities   $ 1,737,007     $ 1,392,816     $ 767,393     $ 3,897,216  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 498,312     $ 8,976     $ 1,350,000     $ 1,857,288  
                                 
Depreciation and Amortization   $ 261,975     $ 43,263     $ 4,677     $ 309,915  
                                 
Purchases of Long-lived Assets   $ 317,892     $ 23,288     $ -     $ 341,180  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Nine Months Ended July 31, 2021                                
                                 
Revenues from External Customers   $ 11,777,739     $ 4,473,171     $ -     $ 16,250,910  
                                 
Cost of Revenues     2,462,219       2,511,756       -       4,973,975  
                                 
Gross Profit     9,315,520       1,961,415       -       11,276,935  
                                 
Research & Development     1,521,175       383,011       -       1,904,186  
Selling, General & Administrative     2,394,986       1,736,004       1,667,607       5,798,597  
                                 
Total Operating Expenses     3,916,161       2,119,015       1,667,607       7,702,783  
                                 
Income (Loss) from Operations     5,399,359       (157,600 )     (1,667,607 )     3,574,152  
                                 
Other Income (Expense)                                
Other Income     74,173       51       846       75,070  
Funding from Paycheck Protection Program     122,327       526,545       -       648,872  
Interest Expense     (8,489 )     (15,558 )     (18,844 )     (42,891 )
                                 
Total Other Income (Expense)     188,011       511,038       (17,998 )     681,051  
                                 
Income (Loss) before Income Taxes     5,587,370       353,438       (1,685,605 )     4,255,203  
                                 
Income Tax (Expense) Benefit                                
Current Tax Benefit (Expense)     254,745       498,666       (394 )     753,017  
Deferred Tax (Expense) Benefit     (356,164 )     264,636       (58,829 )     (150,357 )
                                 
Total Income Tax (Expense) Benefit     (101,419 )     763,302       (59,223 )     602,660  
                                 
Net Income (Loss)   $ 5,485,951     $ 1,116,740     $ (1,744,828 )   $ 4,857,863  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 28,820,472     $ 14,608,555     $ 934,192     $ 44,363,219  
                                 
Total Liabilities   $ 2,159,921     $ 844,816     $ 379,474     $ 3,384,211  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 1,367,619     $ 184,016     $ 2,025,000     $ 3,576,635  
                                 
Depreciation and Amortization   $ 707,761     $ 98,671     $ 21,077     $ 827,509  
                                 
Purchases of Long-lived Assets   $ 745,405     $ 13,203     $ 80,018     $ 838,626  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total  
                         
Nine Months Ended July 31, 2020                                
                                 
Revenues from External Customers   $ 8,377,081     $ 6,989,152     $ -     $ 15,366,233  
                                 
Cost of Revenues     1,715,647       3,831,564       -       5,547,211  
                                 
Gross Profit     6,661,434       3,157,588       -       9,819,022  
                                 
Research & Development     1,393,757       830,008       190,782       2,414,547  
Selling, General & Administrative     2,056,947       1,678,882       1,214,528       4,950,357  
                                 
Total Operating Expenses     3,450,704       2,508,890       1,405,310       7,364,904  
                                 
Income (Loss) from Operations     3,210,730       648,698       (1,405,310 )     2,454,118  
                                 
Other Income (Expense)                                
Other Income     16,242       142       -       16,384  
Interest (Expense)     (7,345 )     (12,313 )     (34,992 )     (54,650 )
                                 
Total Other Income (Expense)     8,897       (12,171 )     (34,992 )     (38,266 )
                                 
Income (Loss) before Income Taxes     3,219,627       636,527       (1,440,302 )     2,415,852  
                                 
Income Tax (Expense) Benefit                                
Current Tax (Expense) Benefit     24,968       -       (11,905 )     13,063  
Deferred Tax (Expense) Benefit     (315,849 )     145,713       (154,333 )     (324,469 )
                                 
Total Income Tax (Expense) Benefit     (290,881 )     145,713       (166,238 )     (311,406 )
                                 
Net Income (Loss)   $ 2,928,746     $ 782,240     $ (1,606,540 )   $ 2,104,446  
                                 
Supplemental Disclosures                                
                                 
Total Assets   $ 22,149,613     $ 14,439,917     $ 678,515     $ 37,268,045  
                                 
Total Liabilities   $ 1,737,007     $ 1,392,816     $ 767,393     $ 3,897,216  
                                 
Revenues from Intercompany Sales - eliminated from sales above   $ 801,134     $ 109,505     $ 2,025,000     $ 2,935,639  
                                 
Depreciation and Amortization   $ 539,567     $ 89,688     $ 14,080     $ 643,335  
                                 
Purchases of Long-lived Assets   $ 758,619     $ 24,440     $ 49,615     $ 832,674  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    For the Three Months Ended July 31, 2021  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
                   
Americas   $ 962,043     $ 589,560     $ 1,551,603  
Europe     1,649,281       1,392,764       3,042,045  
Australia/Asia     971,563       -       971,563  
Middle East/Africa     262,164       -       262,164  
                         
      3,845,051       1,982,324     $ 5,827,375  
                         
Equipment Sales   $ 2,151,520     $ 782,255     $ 2,933,775  
Equipment Rentals     713,389       -       713,389  
Software Sales     153,150       -       153,150  
Engineering Parts     -       1,093,176       1,093,176  
Services     826,992       106,893       933,885  
                         
      3,845,051       1,982,324     $ 5,827,375  
                         
Goods transferred at a point in time   $ 2,298,962     $ 670,255     $ 2,969,217  
Services transferred over time     1,546,089       1,312,069       2,858,158  
                         
    $ 3,845,051       1,982,324     $ 5,827,375  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    For the Three Months Ended July 31, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
                   
Americas   $ 1,071,893     $ 1,753,662     $ 2,825,555  
Europe     240,127       589,304       829,431  
Australia/Asia     1,718,644       -       1,718,644  
Middle East/Africa     22,406       -       22,406  
                         
    $ 3,053,070     $ 2,342,966     $ 5,396,036  
                         
Equipment Sales   $ 2,058,166     $ 160,537     $ 2,218,703  
Equipment Rentals     119,100       -       119,100  
Software Sales     90,540       -       90,540  
Engineering Parts     -       1,895,509       1,895,509  
Services     785,264       286,920       1,072,184  
                         
    $ 3,053,070     $ 2,342,966     $ 5,396,036  
                         
Goods transferred at a point in time   $ 2,148,706     $ 160,537     $ 2,309,243  
Services transferred over time     904,364       2,182,429       3,086,793  
                         
    $ 3,053,070     $ 2,342,966     $ 5,396,036  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    For the Nine Months Ended July 31, 2021  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
                   
Americas   $ 2,425,850     $ 1,703,464     $ 4,129,314  
Europe     4,440,036       2,769,707       7,209,743  
Australia/Asia     4,466,796       -       4,466,796  
Middle East/Africa     445,057       -       445,057  
      11,777,739       4,473,171     $ 16,250,910  
                         
Equipment Sales   $ 8,035,469     $ 1,096,718     $ 9,132,187  
Equipment Rentals     1,645,942       -       1,645,942  
Software Sales     599,425       -       599,425  
Engineering Parts     213,956       2,727,892       2,941,848  
Services     1,282,947       648,561       1,931,508  
      11,777,739       4,473,171     $ 16,250,910  
                         
Goods transferred at a point in time   $ 8,666,514     $ 984,717     $ 9,651,231  
Services transferred over time     3,111,225       3,488,454       6,599,679  
    $ 11,777,739     $ 4,473,171     $ 16,250,910  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020

 

NOTE 15 -SEGMENT ANALYSIS (Continued)

 

    For the Nine Months Ended July 31, 2020  
    Marine     Marine        
    Technology     Engineering     Grand  
    Business     Business     Total  
                   
Americas   $ 2,126,863     $ 4,899,676     $ 7,026,539  
Europe     1,379,134       2,089,476       3,468,610  
Australia/Asia     4,760,390       -       4,760,390  
Middle East/Africa     110,694       -       110,694  
    $ 8,377,081     $ 6,989,152     $ 15,366,233  
                         
Equipment Sales   $ 5,241,537     $ 160,537     $ 5,402,074  
Equipment Rentals     947,664       -       947,664  
Software Sales     358,467       -       358,467  
Engineering Parts     -       5,883,872       5,883,872  
Services     1,829,413       944,743       2,774,156  
    $ 8,377,081     $ 6,989,152     $ 15,366,233  
                         
Goods transferred at a point in time   $ 5,467,995     $ 160,537     $ 5,628,532  
Services transferred over time     2,909,086       6,828,615       9,737,701  
    $ 8,377,081     $ 6,989,152     $ 15,366,233  

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2021 and 2020