XML 29 R20.htm IDEA: XBRL DOCUMENT v3.22.1
SEGMENT ANALYSIS
 6 Months Ended
Apr. 30, 2022
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 14 -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; diver management system 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 which have been eliminated in our financial statements but are disclosed in the tables below for information purposes.

 

The following tables summarize segment asset and operating balances by reportable segment as of and for the three and six months ended April 30, 2022 and 2021, 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

April 30, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

     Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total 
   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Three Months Ended April 30, 2022                    
                     
Net Revenues  $3,491,009   $1,493,829   $-   $4,984,838 
                     
Cost of Revenues   816,033    1,137,099    -    1,953,132 
                     
Gross Profit   2,674,976    356,730    -    3,031,706 
                     
Research & Development   617,246    (99,868)   -    517,378 
Selling, General & Administrative   569,451    683,612    780,053    2,033,116 
                     
Total Operating Expenses   1,186,697    583,744    780,053    2,550,494 
                     
Income (Loss) from Operations   1,488,279    (227,014)   (780,053)   481,212 
                     
Other Income (Expense)                    
Other Income   9,055    4,098    1,344    14,497 
Interest Expense   (2,502)   -    -    (2,502)
                     
Total Other Income (Expense)   6,553    4,098    1,344    11,995 
                     
Income (Loss) before Income Taxes   1,494,832    (222,916)   (778,709)   493,207 
                     
Income Tax (Expense) Benefit                    
Current Tax Benefit (Expense)   279    146,890    (38,019)   109,150 
Deferred Tax (Expense) Benefit   (1,926)   (45,184)   56,056    8,946 
                     
Total Income Tax (Expense) Benefit   (1,647)   101,706    18,037    118,096 
                     
Net Income (Loss)  $1,493,185   $(121,210)  $(760,672)  $611,303 
                     
Supplemental Disclosures                    
                     
Total Assets  $30,503,346   $13,541,238   $818,060   $44,862,644 
                     
Total Liabilities  $2,255,971   $616,133   $447,774   $3,319,878 
                     
Revenues from Intercompany Sales - eliminated from sales above  $413,654   $126,870   $607,500   $1,148,024 
                     
Depreciation and Amortization  $241,469   $31,190   $9,816   $282,475 
                     
Purchases of Long-lived Assets  $84,969   $11,049   $43,494   $139,512 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

     Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total 
   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Three Months Ended April 30, 2021                    
                     
Net Revenues  $4,184,409   $1,188,667   $-   $5,373,076 
                     
Cost of Revenues   1,022,701    600,771    -    1,623,472 
                     
Gross Profit   3,161,708    587,896    -    3,749,604 
                     
Research & Development   538,878    106,403    -    645,281 
Selling, General & Administrative   804,140    556,611    427,783    1,788,534 
                     
Total Operating Expenses   1,343,018    663,014    427,783    2,433,815 
                     
Income (Loss) from Operations   1,818,690    (75,118)   (427,783)   1,315,789 
                     
Other Income (Expense)                    
Other Income   68,583    16    846    69,445 
Funding from Paycheck Protection Program   122,327    436,574    -    558,901 
Interest Expense   

-

   -    (5,108)   (5,108)
                     
Total Other Income (Expense)   190,910    436,590    (4,262)   623,238 
                     
Income (Loss) before Income Taxes   2,009,600    361,472    (432,045)   1,939,027 
                     
Income Tax (Expense) Benefit                    
Current Tax Benefit   72,292    237,670    -    309,962 
Deferred Tax (Expense) Benefit   (102,585)   112,550    (51,021)   (41,056)
                     
Total Income Tax (Expense) Benefit   (30,293)   350,220    (51,021)   268,906 
                     
Net Income (Loss)  $1,979,307   $711,692   $(483,066)  $2,207,933 
                     
Supplemental Disclosures                    
                     
Total Assets  $27,086,894   $14,667,654   $966,418   $42,720,966 
                     
Total Liabilities  $1,839,295   $1,027,958   $586,739   $3,453,992 
                     
Revenues from Intercompany Sales - eliminated from sales above  $504,411   $90,443   $675,000   $1,269,854 
                     
Depreciation and Amortization  $200,536   $26,436   $6,709   $233,681 
                     
Purchases of Long-lived Assets  $144,232   $1,371   $44,442   $190,045 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

     Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total 
   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Six Months Ended April 30, 2022                    
                     
Net Revenues  $7,314,757   $3,508,289   $-   $10,823,046 
                     
Cost of Revenues   1,388,325    2,243,081    -    3,631,406 
                     
Gross Profit   5,926,432    1,265,208    -    7,191,640 
                     
Research & Development   1,146,621    43,647    -    1,190,268 
Selling, General & Administrative   1,327,947    1,339,787    1,487,372    4,155,106 
                     
Total Operating Expenses   2,474,568    1,383,434    1,487,372    5,345,374 
                     
Income (Loss) from Operations   3,451,864    (118,226)   (1,487,372)   1,846,266 
                     
Other Income (Expense)                    
Other Income   18,104    75,043    1,344    94,491 
Interest Expense   (2,502)   -    (400)   (2,902)
                     
Total Other Income (Expense)   15,602    75,043    944    91,589 
                     
Income (Loss) before Income Taxes   3,467,466    (43,183)   (1,486,428)   1,937,855 
                     
Income Tax (Expense) Benefit                    
Current Tax Benefit (Expense)   (266,241)   170,926    (81,144)   (176,459)
Deferred Tax Benefit   4,781    (44,980)   107,354    67,155 
                     
Total Income Tax (Expense) Benefit   (261,460)   125,946    26,210    (109,304)
                     
Net Income (Loss)  $3,206,006   $82,763   $(1,460,218)  $1,828,551 
                     
Supplemental Disclosures                    
                     
Total Assets  $30,503,346   $13,541,238   $818,060   $44,862,644 
                     
Total Liabilities  $2,255,971   $616,133   $447,774   $3,319,878 
                     
Revenues from Intercompany Sales - eliminated from sales above  $803,049   $242,693   $1,207,500   $2,253,242 
                     
Depreciation and Amortization  $377,127   $47,847   $18,967   $443,941 
                     
Purchases of Long-lived Assets  $1,071,062   $12,049   $58,365   $1,141,476 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2022, and October 31, 2021

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

     Marine Technology Business (Products)     Marine Engineering Business (Services)     Overhead     Total 
   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Six Months Ended April 30, 2021                    
                     
Net Revenues  $7,932,688   $2,490,847   $-   $10,423,535 
                     
Cost of Revenues   1,916,976    1,442,033    -    3,359,009 
                     
Gross Profit   6,015,712    1,048,814    -    7,064,526 
                     
Research & Development   980,622    247,798    -    1,228,420 
Selling, General & Administrative   1,540,218    1,129,321    940,686    3,610,225 
                     
Total Operating Expenses   2,520,840    1,377,119    940,686    4,838,645 
                     
Income (Loss) from Operations   3,494,872    (328,305)   (940,686)   2,225,881 
                     
Other Income (Expense)                    
Other Income   70,619    34    846    71,499 
Funding from Paycheck Protection Program   122,327    526,545    -    648,872 
Interest Expense   -    

-

    (11,297)   (11,297)
                     
Total Other Income (Expense)   192,946    526,579    (10,451)   709,074 
                     
Income (Loss) before Income Taxes   3,687,818    198,274    (951,137)   2,934,955 
                     
Income Tax (Expense) Benefit                    
Current Tax Benefit   84,945    237,670    12,072    334,688 
Deferred Tax (Expense) Benefit   (113,740)   264,636    (83,761)   67,134 
                     
Total Income Tax (Expense) Benefit   (28,795)   502,306    (71,689)   401,822 
                     
Net Income (Loss)  $3,659,023   $700,580   $(1,022,826)  $3,336,777 
                     
Supplemental Disclosures                    
                     
Total Assets  $27,086,894   $14,667,654   $966,418   $42,720,966 
                     
Total Liabilities  $1,839,295   $1,027,958   $586,739   $3,453,992 
                     
Revenues from Intercompany Sales - eliminated from sales above  $875,040   $139,644   $1,350,000   $2,364,684 
                     
Depreciation and Amortization  $512,658   $74,081   $13,125   $599,864 
                     
Purchases of Long-lived Assets  $544,207   $5,548   $49,434   $599,189 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2022, and October 31, 2021