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SEGMENT ANALYSIS
 3 Months Ended
Jan. 31, 2023
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 Business” or “Products Segment”) operations are comprised primarily of sale and/or rental of underwater technology sonar solutions, products for underwater operations including hardware and software and support services and our diver management system. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provide 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 for the three months ended January 31, 2023 and 2022, 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

January 31, 2023 and October 31, 2022

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Three Months Ended January 31, 2023                    
                     
Net Revenues  $3,824,159   $1,772,125   $-   $5,596,284 
                     
Cost of Revenues   1,064,244    779,035    -    1,843,279 
                     
Gross Profit   2,759,915    993,090    -    3,753,005 
                     
Research & Development   438,308    6,150    -    444,458 
Selling, General & Administrative   661,759    646,310    654,382    1,962,451 
                     
Total Operating Expenses   1,100,067    652,460    654,382    2,406,909 
                     
Income (Loss) from Operations   1,659,848    340,630    (654,382)   1,346,096 
                     
Other Income                     
Other Income   15,020    745    -    15,765 
                     
Total Other Income   15,020    745    -    15,765 
                     
Income (Loss) before Income Taxes   1,674,868    341,375    (654,382)   1,361,861 
                     
Income Tax (Expense) Benefit                    
Current Tax (Expense) Benefit   (18,873)   (19,856

)

  38,718   (11)
Deferred Tax (Expense) Benefit   -    -    36,007    36,007 
                     
Total Income Tax (Expense) Benefit   (18,873)   (19,856)   74,725   35,996
                     
Net Income (Loss)  $1,655,995   $321,519   $(579,657)  $1,397,857 
                     
Supplemental Disclosures                    
                     
Total Assets  $36,176,835   $13,377,560   $949,710   $50,504,105 
                     
Total Liabilities  $2,694,766   $758,160   $480,710   $3,933,636 
                     
Revenues from Intercompany Sales - eliminated from sales above  $829,674   $45,707   $680,000   $1,555,381 
                     
Depreciation and Amortization  $128,838   $24,910   $10,259   $164,007 
                     
Purchases of Long-lived Assets  $79,642   $4,780   $21,485   $105,907 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2023 and October 31, 2022

 

NOTE 14 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Three Months Ended January 31, 2022                    
                     
Net Revenues  $3,823,748   $2,014,460   $-   $5,838,208 
                     
Cost of Revenues   572,292    1,105,982    -    1,678,274 
                     
Gross Profit   3,251,456    908,478    -    4,159,934 
                     
Research & Development   529,375    143,515    -    672,890 
Selling, General & Administrative   753,614    651,149    706,349    2,111,112 
                     
Total Operating Expenses   1,282,989    794,664    706,349    2,784,002 
                     
Income (Loss) from Operations   1,968,467    113,814    (706,349)   1,375,932 
                     
Other Income (Expense)                    
Other Income   9,049    70,945    -    79,994 
Interest Expense   (4,882)   (5,026)   (1,370)   (11,278)
                     
Total Other Income (Expense)   4,167    65,919    (1,370)   68,716 
                     
Income (Loss) before Income Taxes   1,972,634    179,733    (707,719)   1,444,648 
                     
Income Tax (Expense) Benefit                    
Current Tax (Expense) Benefit   (266,520)   24,036    (43,125)   (285,609)
Deferred Tax (Expense) Benefit   6,708    204    51,297    58,209 
                     
Total Income Tax (Expense) Benefit   (259,812)   24,240    8,172    (227,400)
                     
Net Income (Loss)  $1,712,822   $203,973   $(699,547)  $1,217,248 
                     
Supplemental Disclosures                    
                     
Total Assets  $30,847,114   $13,893,382   $658,735   $45,399,231 
                     
Total Liabilities  $1,635,666   $501,339   $429,580   $2,566,585 
                     
Revenues from Intercompany Sales - eliminated from sales above  $389,395   $115,823   $600,000   $1,105,218 
                     
Depreciation and Amortization  $135,658   $16,657   $9,151   $161,466 
                     
Purchases of Long-lived Assets  $986,093   $1,000   $14,871   $1,001,964 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2023 and October 31, 2022