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SEGMENT ANALYSIS | 9 Months Ended
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Jul. 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, 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. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements July 31, 2023, and October 31, 2022 NOTE 14 – SEGMENT ANALYSIS (Continued) The following tables summarize segment asset and operating balances by reportable segment for the three and nine months ended July 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
SCHEDULE OF SEGMENT REPORTING INFORMATION
|  | Marine Technology Business (Products) |  |  | Marine Engineering Business (Services) |  |  | Overhead |  |  | Total |
Three Months Ended July 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Revenues |  | $ | 2,863,251 |  |  | $ | 2,027,281 |  |  | $ | - |  |  | $ | 4,890,532 |
Cost of Revenues |  |  | 512,091 |  |  |  | 1,013,217 |  |  |  | - |  |  |  | 1,525,308 |
Gross Profit |  |  | 2,351,160 |  |  |  | 1,014,064 |  |  |  | - |  |  |  | 3,365,224 |
Research & Development |  |  | 557,260 |  |  |  | 11,027 |  |  |  | - |  |  |  | 568,287 |
Selling, General & Administrative |  |  | 882,663 |  |  |  | 547,712 |  |  |  | 503,948 |  |  |  | 1,934,323 |
Total Operating Expenses |  |  | 1,439,923 |  |  |  | 558,739 |  |  |  | 503,948 |  |  |  | 2,502,610 |
Income (Loss) from Operations |  |  | 911,237 |  |  |  | 455,325 |  |  |  | (503,948 | ) |  |  | 862,614 |
Other Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other Income |  |  | 180,463 |  |  |  | 34,089 |  |  |  | - |  |  |  | 214,552 |
Interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Other Income |  |  | 180,463 |  |  |  | 34,089 |  |  |  | - |  |  |  | 214,552 |
Income (Loss) before Income Taxes |  |  | 1,091,700 |  |  |  | 489,414 |  |  |  | (503,948 | ) |  |  | 1,077,166 |
Income Tax (Expense) Benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Tax (Expense) Benefit |  |  | (39,064 | ) |  |  | (55,476 | ) |  |  | 25,769 |  |  |  | (68,771 | )
Deferred Tax (Expense) Benefit |  |  | - |  |  |  | - |  |  |  | 30,385 |  |  |  | 30,385 |
Total Income Tax (Expense) Benefit |  |  | (39,064 | ) |  |  | (55,476 | ) |  |  | 56,154 |  |  |  | (38,386 | )
Net Income (Loss) |  | $ | 1,052,636 |  |  | $ | 433,938 |  |  | $ | (447,794 | ) |  | $ | 1,038,780 |
Supplemental Disclosures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Assets |  | $ | 37,173,921 |  |  | $ | 13,962,350 |  |  | $ | 833,524 |  |  | $ | 51,969,795 |
Total Liabilities |  | $ | 1,619,997 |  |  | $ | 679,522 |  |  | $ | (166,953 | ) |  | $ | 2,132,566 |
Revenues from Intercompany Sales – eliminated from sales above |  | $ | 1,174,823 |  |  | $ | 106,328 |  |  | $ | 300,000 |  |  | $ | 1,581,151 |
Depreciation and Amortization |  | $ | 141,764 |  |  | $ | 25,716 |  |  | $ | 11,446 |  |  | $ | 178,927 |
Purchases of Long-lived Assets |  | $ | 263,493 |  |  | $ | 2,814 |  |  | $ | 28,946 |  |  | $ | 295,253 |
CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements July 31, 2023, and October 31, 2022 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) Benefit |  |  | (226,264 | ) |  |  | (23,148 | ) |  |  | (77,320 | ) |  |  | (326,732 | )
Deferred Tax (Expense) 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, 2023, and October 31, 2022 NOTE 14 – SEGMENT ANALYSIS (Continued)
|  | Marine Technology Business (Products) |  |  | Marine Engineering Business (Services) |  |  | Overhead |  |  | Total |
Nine Months Ended July 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Revenues |  | $ | 10,270,839 |  |  | $ | 5,517,486 |  |  | $ | - |  |  | $ | 15,788,325 |
Cost of Revenues |  |  | 2,461,717 |  |  |  | 2,585,138 |  |  |  | - |  |  |  | 5,046,855 |
Gross Profit |  |  | 7,809,122 |  |  |  | 2,932,348 |  |  |  | - |  |  |  | 10,741,470 |
Research & Development |  |  | 1,513,973 |  |  |  | 24,711 |  |  |  | - |  |  |  | 1,538,684 |
Selling, General & Administrative |  |  | 2,422,383 |  |  |  | 1,849,761 |  |  |  | 1,866,824 |  |  |  | 6,138,968 |
Total Operating Expenses |  |  | 3,936,356 |  |  |  | 1,874,472 |  |  |  | 1,866,824 |  |  |  | 7,677,652 |
Income (Loss) from Operations |  |  | 3,872,766 |  |  |  | 1,057,876 |  |  |  | (1,866,824 | ) |  |  | 3,063,818 |
Other Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other Income |  |  | 345,390 |  |  |  | 58,303 |  |  |  | - |  |  |  | 403,693 |
Total Other Income (Expense) |  |  | 345,390 |  |  |  | 58,303 |  |  |  | - |  |  |  | 403,693 |
Income (Loss) before Income Taxes |  |  | 4,218,156 |  |  |  | 1,116,179 |  |  |  | (1,866,824 | ) |  |  | 3,467,511 |
Income Tax (Expense) Benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Tax (Expense) Benefit |  |  | (166,649 | ) |  |  | (77,517 | ) |  |  | 106,611 |  |  |  | (137,555 | )
Deferred Tax (Expense) Benefit |  |  | - |  |  |  | - |  |  |  | 115,158 |  |  |  | 115,158 |
Total Income Tax (Expense) Benefit |  |  | (166,649 | ) |  |  | (77,517 | ) |  |  | 221,770 |  |  |  | (22,397 | )
Net Income (Loss) |  | $ | 4,051,507 |  |  | $ | 1,038,662 |  |  | $ | (1,645,054 | ) |  | $ | 3,445,114 |
Supplemental Disclosures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Assets |  | $ | 37,173,921 |  |  | $ | 13,962,350 |  |  | $ | 833,524 |  |  | $ | 51,969,795 |
Total Liabilities |  | $ | 1,619,997 |  |  | $ | 679,522 |  |  | $ | (166,953 | ) |  | $ | 2,132,566 |
Revenues from Intercompany Sales – eliminated from sales above |  | $ | 4,088,818 |  |  | $ | 321,846 |  |  | $ | 900,000 |  |  | $ | 5,310,664 |
Depreciation and Amortization |  | $ | 414,167 |  |  | $ | 75,201 |  |  | $ | 32,146 |  |  | $ | 521,515 |
Purchases of Long-lived Assets |  | $ | 407,326 |  |  | $ | 25,606 |  |  | $ | 76,677 |  |  | $ | 509,609 |
CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements July 31, 2023, and October 31, 2022 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 |  |  |  | 2004 |  |  |  | 111,334 |
Income (Loss) before Income Taxes |  |  | 5,617,190 |  |  |  | 378,448 |  |  |  | (2,014,326 | ) |  |  | 3,981,312 |
Income Tax (Expense) Benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Tax (Expense) Benefit |  |  | (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, 2023, and October 31, 2022

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