XML 29 R20.htm IDEA: XBRL DOCUMENT v3.22.2.2
SEGMENT ANALYSIS
 9 Months Ended
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)

 

   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 
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