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SEGMENT ANALYSIS
 6 Months Ended
Apr. 30, 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, comprising hardware and software and support services. 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 and six months ended April 30, 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

April 30, 2023 and October 31, 2022

 

NOTE 14 -SEGMENT ANALYSIS (Continued)

  

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Three Months Ended April 30, 2023                    
                     
Net Revenues  $3,583,429   $1,718,080   $-   $5,301,509 
                     
Cost of Revenues   885,382    792,886    -    1,678,268 
                     
Gross Profit   2,698,047    925,194    -    3,623,241 
                     
Research & Development   518,405    7,534    -    525,939 
Selling, General & Administrative   877,961    655,739    708,494    2,242,194 
                     
Total Operating Expenses   1,396,366    663,273    708,494    2,768,133 
                     
Income (Loss) from Operations   1,301,681    261,921    (708,494)   855,108 
                     
Other Income                    
Other Income   149,907    23,469    -    173,376 
                     
Total Other Income   149,907    23,469    -    173,376 
                     
Income (Loss) before Income Taxes   1,451,588    285,390    (708,494)   1,028,484 
                     
Income Tax (Expense) Benefit                    
Current Tax (Expense) Benefit   (108,712)   (2,185)   42,124    (68,773)
Deferred Tax (Expense) Benefit   -    -    48,766    48,766 
                     
Total Income Tax (Expense) Benefit   (108,712)   (2,185)   90,890    (20,007)
                     
Net Income (Loss)  $1,342,876   $283,205   $(617,604)  $1,008,477 
                     
Supplemental Disclosures                    
                     
Total Assets  $36,187,625   $13,618,065   $1,097,772   $50,903,462 
                     
Total Liabilities  $1,665,630   $802,459   $124,632   $2,592,721 
                     
Revenues from Intercompany Sales - eliminated from sales above  $2,084,321   $169,811   $(80,000)  $2,174,132 
                     
Depreciation and Amortization  $143,565   $24,757   $10,441   $178,763 
                     
Purchases of Long-lived Assets  $64,191   $18,012   $36,246   $118,448 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2023 and October 31, 2022

 

NOTE 14 - SEGMENT ANALYSIS (Continued)

 

   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    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 (Expense) Benefit   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, 2023 and October 31, 2022

 

NOTE 14 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Six Months Ended April 30, 2023                    
                     
Net Revenues  $7,407,588   $3,490,205   $-   $10,897,793 
                     
Cost of Revenues   1,949,626    1,571,921    -    3,521,547 
                     
Gross Profit   5,457,962    1,918,284    -    7,376,246 
                     
Research & Development   956,713    13,684    -    970,397 
Selling, General & Administrative   1,539,720    1,302,049    1,362,876    4,204,645 
                     
Total Operating Expenses   2,496,433    1,315,733    1,362,876    5,175,042 
                     
Income (Loss) from Operations   2,961,529    602,551    (1,362,876)   2,201,204 
                     
Other Income (Expense)                    
Other Income   164,927    24,214    -    189,141 
                     
Total Other Income    164,927    24,214    -    189,141 
                     
Income (Loss) before Income Taxes   3,126,456    626,765    (1,362,876)   2,390,345 
                     
Income Tax (Expense) Benefit                    
Current Tax (Expense) Benefit   (127,585)   (22,041)   80,842    (68,784)
Deferred Tax Benefit (Expense)   -    -    84,773    84,773 
                     
Total Income Tax (Expense) Benefit   (127,585)   (22,041)   165,615    15,989 
                     
Net Income (Loss)  $2,998,871   $604,724   $(1,197,261)  $2,406,334 
                     
Supplemental Disclosures                    
                     
Total Assets  $36,187,625   $13,618,065   $1,097,772   $50,903,462 
                     
Total Liabilities  $1,665,630   $802,459   $124,632   $2,592,721 
                     
Revenues from Intercompany Sales - eliminated from sales above  $2,913,995   $215,518   $600,000   $3,729,513 
                     
Depreciation and Amortization  $272,403   $49,667   $20,700   $342,770 
                     
Purchases of Long-lived Assets  $143,833   $22,792   $57,731   $224,355 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

April 30, 2023 and October 31, 2022

 

NOTE 14 - SEGMENT ANALYSIS (Continued)

 

   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    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 (Expense) 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, 2023 and October 31, 2022