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SEGMENT ANALYSIS | 9 Months Ended
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Jul. 31, 2022
Segment Reporting [Abstract] |
SEGMENT ANALYSIS | NOTE 14 -SEGMENT ANALYSIS Based on the fundamental difference in the types of offering, products and solutions 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 nine months ended July 31, 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 July 31, 2022, and October 31, 2021 NOTE 14 -SEGMENT ANALYSIS (Continued) SCHEDULE OF SEGMENT REPORTING INFORMATION
|  | Marine Technology Business (Products) |  |  | Marine Engineering Business (Services) |  |  | Overhead |  |  | Total |
Three Months Ended July 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Revenues |  | $ | 4,004,557 |  |  | $ | 2,262,852 |  |  | $ | - |  |  | $ | 6,267,409 |
Cost of Revenues |  |  | 532,248 |  |  |  | 1,172,517 |  |  |  | - |  |  |  | 1,704,765 |
Gross Profit |  |  | 3,472,309 |  |  |  | 1,090,335 |  |  |  | - |  |  |  | 4,562,644 |
Research & Development |  |  | 605,857 |  |  |  | (27,904 | ) |  |  | - |  |  |  | 577,953 |
Selling, General & Administrative |  |  | 731,200 |  |  |  | 700,820 |  |  |  | 528,958 |  |  |  | 1,960,978 |
Total Operating Expenses |  |  | 1,337,057 |  |  |  | 672,916 |  |  |  | 528,958 |  |  |  | 2,538,931 |
Income (Loss) from Operations |  |  | 2,135,252 |  |  |  | 417,419 |  |  |  | (528,958 | ) |  |  | 2,023,713 |
Other Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other Income |  |  | 14,472 |  |  |  | 4,212 |  |  |  | 1,060 |  |  |  | 19,744 |
Funding from Paycheck Protection Program |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Other Income (Expense) |  |  | 14,472 |  |  |  | 4,212 |  |  |  | 1,060 |  |  |  | 19,744 |
Income (Loss) before Income Taxes |  |  | 2,149,724 |  |  |  | 421,631 |  |  |  | (527,898 | ) |  |  | 2,043,457 |
Income Tax (Expense) Benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Tax Expense |  |  | (226,264 | ) |  |  | (23,148 | ) |  |  | (77,320 | ) |  |  | (326,732 | )
Deferred Tax Benefit |  |  | 378 |  |  |  | 2,141 |  |  |  | 49,413 |  |  |  | 51,932 |
Total Income Tax (Expense) Benefit |  |  | (225,886 | ) |  |  | (21,007 | ) |  |  | (27,907 | ) |  |  | (274,800 | )
Net Income (Loss) |  | $ | 1,923,838 |  |  | $ | 400,624 |  |  | $ | (555,805 | ) |  | $ | 1,768,657 |
Supplemental Disclosures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Assets |  | $ | 33,015,110 |  |  | $ | 13,354,167 |  |  | $ | 834,699 |  |  | $ | 47,203,976 |
Total Liabilities |  | $ | 3,246,151 |  |  | $ | 774,497 |  |  | $ | 391,958 |  |  | $ | 4,412,606 |
Revenues from Intercompany Sales - eliminated from sales above |  | $ | 966,316 |  |  | $ | 62,757 |  |  | $ | 607,500 |  |  | $ | 1,636,573 |
Depreciation and Amortization |  | $ | 174,739 |  |  | $ | 24,209 |  |  | $ | 9,873 |  |  | $ | 208,821 |
Purchases of Long-lived Assets |  | $ | 14,815 |  |  | $ | 22,125 |  |  | $ | 17,469 |  |  | $ | 54,409 |
CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements July 31, 2022, and October 31, 2021 NOTE 14 -SEGMENT ANALYSIS (Continued)
|  | Marine Technology Business (Products) |  |  | Marine Engineering Business (Services) |  |  | Overhead |  |  | Total |
Three Months Ended July 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Revenues |  | $ | 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 |  |  | 862,673 |  |  |  | 621,876 |  |  |  | 729,272 |  |  |  | 2,213,821 |
Total Operating Expenses |  |  | 1,403,226 |  |  |  | 757,089 |  |  |  | 729,272 |  |  |  | 2,889,587 |
Income (Loss) from Operations |  |  | 1,896,582 |  |  |  | 155,512 |  |  |  | (729,272 | ) |  |  | 1,322,822 |
Other Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other Income |  |  | 3,554 |  |  |  | 17 |  |  |  | - |  |  |  | 3,571 |
Interest Expense |  |  | (584 | ) |  |  | (365 | ) |  |  | (5,196 | ) |  |  | (6,145 | )
Total Other Income (Expense) |  |  | 2,970 |  |  |  | (348 | ) |  |  | (5,196 | ) |  |  | (2,574 | )
Income (Loss) before Income Taxes |  |  | 1,899,552 |  |  |  | 155,164 |  |  |  | (734,468 | ) |  |  | 1,320,248 |
Income Tax (Expense) Benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Tax Benefit (Expense) |  |  | 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 Consolidated Financial Statements July 31, 2022, and October 31, 2021 NOTE 14 -SEGMENT ANALYSIS (Continued)
|  | Marine Technology Business (Products) |  |  | Marine Engineering Business (Services) |  |  | Overhead |  |  | Total |
Nine Months Ended July 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Revenues |  | $ | 11,319,314 |  |  | $ | 5,771,141 |  |  | $ | - |  |  | $ | 17,090,455 |
Cost of Revenues |  |  | 1,920,573 |  |  |  | 3,415,598 |  |  |  | - |  |  |  | 5,336,171 |
Gross Profit |  |  | 9,398,741 |  |  |  | 2,355,543 |  |  |  | - |  |  |  | 11,754,284 |
Research & Development |  |  | 1,752,478 |  |  |  | 15,743 |  |  |  | - |  |  |  | 1,768,221 |
Selling, General & Administrative |  |  | 2,059,147 |  |  |  | 2,040,608 |  |  |  | 2,016,330 |  |  |  | 6,116,085 |
Total Operating Expenses |  |  | 3,811,625 |  |  |  | 2,056,351 |  |  |  | 2,016,330 |  |  |  | 7,884,306 |
Income (Loss) from Operations |  |  | 5,587,116 |  |  |  | 299,192 |  |  |  | (2,016,330 | ) |  |  | 3,869,978 |
Other Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other Income |  |  | 32,576 |  |  |  | 79,256 |  |  |  | 2,404 |  |  |  | 114,236 |
Interest Expense |  |  | (2,502 | ) |  |  | - |  |  |  | (400 | ) |  |  | (2,902 | )
Total Other Income (Expense) |  |  | 30,074 |  |  |  | 79,256 |  |  |  | 2,004 |  |  |  | 111,334 |
Income (Loss) before Income Taxes |  |  | 5,617,190 |  |  |  | 378,448 |  |  |  | (2,014,326 | ) |  |  | 3,981,312 |
Income Tax (Expense) Benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Tax Benefit (Expense) |  |  | (492,505 | ) |  |  | 147,778 |  |  |  | (158,464 | ) |  |  | (503,191 | )
Deferred Tax (Expense) Benefit |  |  | 5,159 |  |  |  | (42,839 | ) |  |  | 156,767 |  |  |  | 119,087 |
Total Income Tax (Expense) Benefit |  |  | (487,346 | ) |  |  | 104,939 |  |  |  | (1,697 | ) |  |  | (384,104 | )
Net Income (Loss) |  | $ | 5,129,844 |  |  | $ | 483,387 |  |  | $ | (2,016,023 | ) |  | $ | 3,597,208 |
Supplemental Disclosures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Assets |  | $ | 33,015,110 |  |  | $ | 13,354,167 |  |  | $ | 834,699 |  |  | $ | 47,203,976 |
Total Liabilities |  | $ | 3,246,151 |  |  | $ | 774,497 |  |  | $ | 391,958 |  |  | $ | 4,412,606 |
Revenues from Intercompany Sales - eliminated from sales above |  | $ | 1,769,365 |  |  | $ | 305,450 |  |  | $ | 1,815,000 |  |  | $ | 3,889,815 |
Depreciation and Amortization |  | $ | 551,866 |  |  | $ | 72,056 |  |  | $ | 28,840 |  |  | $ | 652,762 |
Purchases of Long-lived Assets |  | $ | 1,085,877 |  |  | $ | 34,174 |  |  | $ | 75,834 |  |  | $ | 1,195,885 |
CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements July 31, 2022, and October 31, 2021 NOTE 14 -SEGMENT ANALYSIS (Continued)
|  | Marine Technology Business (Products) |  |  | Marine Engineering Business (Services) |  |  | Overhead |  |  | Total |
Nine Months Ended July 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Revenues |  | $ | 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 |  |  | 2,402,406 |  |  |  | 1,751,197 |  |  |  | 1,670,443 |  |  |  | 5,824,046 |
Total Operating Expenses |  |  | 3,923,581 |  |  |  | 2,134,208 |  |  |  | 1,670,443 |  |  |  | 7,728,232 |
Income (Loss) from Operations |  |  | 5,391,939 |  |  |  | (172,793 | ) |  |  | (1,670,443 | ) |  |  | 3,548,703 |
Other Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other Income |  |  | 74,173 |  |  |  | 51 |  |  |  | 846 |  |  |  | 75,070 |
Funding from Paycheck Protection Program |  |  | 122,327 |  |  |  | 526,545 |  |  |  | - |  |  |  | 648,872 |
Interest Expense |  |  | (1,069 | ) |  |  | (365 | ) |  |  | (16,008 | ) |  |  | (17,442 | )
Total Other Income (Expense) |  |  | 195,431 |  |  |  | 526,231 |  |  |  | (15,162 | ) |  |  | 706,500 |
Income (Loss) before Income Taxes |  |  | 5,587,370 |  |  |  | 353,438 |  |  |  | (1,685,605 | ) |  |  | 4,255,203 |
Income Tax (Expense) Benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Tax (Expense) Benefit |  |  | 254,745 |  |  |  | 498,666 |  |  |  | (394 | ) |  |  | 753,017 |
Deferred Tax Benefit (Expense) |  |  | (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 Consolidated Financial Statements July 31, 2022, and October 31, 2021

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