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SEGMENT ANALYSIS
 12 Months Ended
Oct. 31, 2021
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 12 -SEGMENT ANALYSIS

 

Based on the fundamental difference in the types of 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.

 

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 years ended October 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 Consolidated Financial Statements

October 31, 2021 and 2020

 

NOTE 12 -SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Year Ended October 31, 2021                    
                     
Revenues from External Customers  $15,804,222   $5,527,305   $-   $21,331,527 
                     
Cost of Revenues   3,169,835    3,391,974    -    6,561,809 
                     
Gross Profit   12,634,387    2,135,331    -    14,769,718 
                     
Research & Development   2,509,107    473,569    -    2,982,676 
Selling, General & Administrative   3,220,883    2,284,997    2,409,695    7,915,575 
                     
Total Operating Expenses   5,729,990    2,758,566    2,409,695    10,898,251 
                     
Income (Loss) from Operations   6,904,397    (623,235)   (2,409,695)   3,871,467 
                     
Other Income (Expense)                    
Other Income   354,373    1,079,374    1,635    1,435,382 
Interest Expense   (12,588)   (19,668)   (21,349)   (53,605)
                     
Total Other Income (Expense)   341,785    1,059,706    (19,714)   1,381,777 
                     
Income (Loss) before Income Taxes   7,246,182    436,471   (2,429,409)   5,253,244 
                     
Income Tax (Expense) Benefit                    
Current Tax Benefit (Expense)   35,032    (51,624)    -   (16,592)
Deferred Tax (Expense) Benefit   (418,338)   409,205    (279,754)   (288,887)
                     
Total Income Tax (Expense) Benefit   (383,306)   357,581    (279,754)   (305,479)
                     
Net Income (Loss)  $6,862,876   $794,052   $(2,709,163)  $4,947,765 
                     
Supplemental Disclosures                    
                     
Total Assets  $30,631,442   $14,117,747   $716,230   $45,465,419 
                     
Total Liabilities  $3,166,999   $849,306   $400,041   $4,416,346 
                     
Revenues from Intercompany Sales - eliminated from sales above  $2,075,387   $355,608   $3,470,000   $5,900,995 
                     
Depreciation and Amortization  $780,434   $114,022   $29,617   $924,073 
                     
Purchases of Long-lived Assets  $793,995   $51,907   $118,302   $964,204 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2021 and 2020

 

NOTE 12 -SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Year Ended October 31, 2020                    
                     
Revenues from External Customers  $11,278,181   $8,765,629   $-   $20,043,810 
                     
Cost of Revenues   2,254,008    5,060,354    -    7,314,362 
                     
Gross Profit   9,024,173    3,705,275    -    12,729,448 
                     
Research & Development   1,955,364    1,042,243    190,782    3,188,389 
Selling, General & Administrative   2,779,662    2,260,849    1,696,783    6,737,294 
                     
Total Operating Expenses   4,735,026    3,303,092    1,887,565    9,925,683 
                     
Income (Loss) from Operations   4,289,147    402,183    (1,887,565)   2,803,765 
                     
Other Income (Expense)                    
Other Income   141,511    526,734    -    668,245 
Interest (Expense)   (10,612)   (15,672)   (43,919)   (70,203)
                     
Total Other Income (Expense)   130,899    511,062    (43,919)   598,042 
                     
Income (Loss) before Income Taxes   4,420,046    913,245    (1,931,484)   3,401,807 
                     
Income Tax (Expense) Benefit                    
Current Tax Benefit (Expense)   63,590    -    (12,927)   50,663 
Deferred Tax (Expense) Benefit   (196,664)   273,666    (185,887)   (108,885)
                     
Total Income Tax (Expense) Benefit   (133,074)   273,666    (198,814)   (58,222)
                     
Net Income (Loss)  $4,286,972   $1,186,911   $(2,130,298)  $3,343,585 
                     
Supplemental Disclosures                    
                     
Total Assets  $22,200,123   $14,347,827   $1,491,201   $38,039,151 
                     
Total Liabilities  $1,572,314   $1,321,011   $749,558   $3,642,883 
                     
Revenues from Intercompany Sales - eliminated from sales above  $997,150   $354,373   $2,700,000   $4,051,523 
                     
Depreciation and Amortization  $678,449   $105,775   $22,462   $806,686 
                     
Purchases of Long-lived Assets  $811,352   $19,660   $167,323   $998,335 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2021 and 2020