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SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 2024
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 12 – SEGMENT ANALYSIS

 

We operate in two reportable segments, “Products Business” and “Service Business” which are managed separately based upon fundamental differences in their operations. Segment operating income is total segment revenue reduced by cost of revenues and operating expenses, Research and Development (“R&D”), and Selling, General & Administrative (“SG&A”) identifiable with the reporting business segment. Overheads include general corporate administrative costs.

 

The Company evaluates performance and resources based upon operating income.

 

The Net Revenues shown in this Note 12 in the tables below comprise sales which have been made externally and exclude intercompany sales (sales between companies in our Group). For segment reporting purposes we have, nevertheless, included in the Supplemental Disclosures in the tables below, information on intercompany sales in the reporting period. Intercompany sales are not included in Net Revenues.

 

Coda Octopus Products (with entities operating in the UK, USA and Denmark) constitute the Marine Technology Business (“Products Segment”) is a supplier to the underwater/subsea market and selling both hardware and software solutions which include imaging sonar technology solutions, diving and diving communications technology, geophysical products, rental equipment, customization, and field operations services. Coda Octopus Colmek, Inc. (a Utah corporation) and Coda Octopus Martech Ltd (a UK corporation) constitute the Marine Engineering Business (“Services Segment”) and are subcontractors mainly to prime defense contractors where they provide engineering services.

 

The following tables summarize segment asset and operating balances by reportable segment for the three months and nine months ended July 31, 2024 and 2023, 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, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

  

Marine

Technology

Business

(Products)

  

Marine

Engineering

Business

(Services)

   Overhead   Total 
                 
Three Months Ended July 31, 2024                    
                     
Net Revenues  $3,048,544   $2,428,000   $-   $5,476,544 
                     
Cost of Revenues   521,141    906,865    -    1,428,006 
                     
Gross Profit   2,527,403    1,521,135    -    4,048,538 
                     
Research & Development   459,879    36,480    -    496,359 
Selling, General & Administrative   1,085,495    498,941    576,969    2,161,405 
                     
Total Operating Expenses   1,545,374    535,421    576,969    2,657,764 
                     
Income (Loss) from Operations   982,029    985,714    (576,969)   1,390,774 
                     
Other Income                    
Other Income   10,396    67    -    10,463 
Interest Income   161,875    44,707    23,427    230,009 
                     
Total Other Income   172,271    44,774    23,427    240,472 
                     
Income (Loss) before Income Taxes   1,154,300    1,030,488    (553,542)   1,631,246 
                     
Income Tax (Expense)                    
Current Tax (Expense)   (101,172)   -    (224,453)   (325,625)
Deferred Tax (Expense)   (27,309)   -    (3,654)   (30,963)
                     
Total Income Tax (Expense)   (128,481)   -    (228,107)   (356,588)
                     
Net Income (Loss)  $1,025,819   $1,030,488   $(781,649)  $1,274,658 
                     
Supplemental Disclosures                    
                     
Total Assets  $37,464,861   $14,827,016   $3,653,237   $55,945,114 
                     
Total Liabilities  $1,952,347   $747,484   $440,246   $3,140,077 
                     
Intercompany sales that are not included in Net Revenues shown above  $1,088,573   $70,284   $318,000   $1,476,857 
                     
Depreciation and Amortization  $167,914   $21,029   $12,058   $201,001 
                     
Purchases of Long-lived Assets  $151,526   $13,414   $15,082   $180,022 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

  

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   2,848    -    -    2,848 
Interest Income   177,615    34,089    -    211,704 
                     
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 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 
                     
Intercompany sales that are not included in Net Revenues shown 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, 2024 and October 31, 2023

 

NOTE 12 – SEGMENT ANALYSIS (Continued)

 

  

Marine

Technology

Business

(Products)

  

Marine

Engineering

Business

(Services)

   Overhead   Total 
                 
Nine Months Ended July 31, 2024                    
                     
Net Revenues  $10,116,024   $5,144,889   $-   $15,260,913 
                     
Cost of Revenues   2,192,486    2,194,719    -    4,387,205 
                     
Gross Profit   7,923,538    2,950,170    -    10,873,708 
                     
Research & Development   1,406,315    118,502    -    1,524,817 
Selling, General & Administrative   2,713,704    1,695,875    1,642,771    6,052,350 
                     
Total Operating Expenses   4,120,019    1,814,377    1,642,771    7,577,167 
                     
Income (Loss) from Operations   3,803,519    1,135,793    (1,642,771)   3,296,541 
                     
Other Income                    
Other Income   16,086    26,761    -    42,847 
Interest Income   499,763    153,583    62,671    716,017 
                     
Total Other Income   515,849    180,344    62,671    758,864 
                     
Income (Loss) before Income Taxes   4,319,368    1,316,137    (1,580,100)   4,055,405 
                     
Income Tax (Expense)                     
Current Tax (Expense)   (180,612)   -    (302,071)   (482,683)
Deferred Tax (Expense)   (10,956)   -    (241,982)   (252,938)
                     
Total Income Tax (Expense)   (191,568)   -    (544,053)   (735,621)
                     
Net Income (Loss)  $4,127,800   $1,316,137   $(2,124,153)  $3,319,784 
                     
Supplemental Disclosures                    
                     
Total Assets  $37,464,861   $14,827,016   $3,653,237   $55,945,114 
                     
Total Liabilities  $1,952,347   $747,484   $440,246   $3,140,077 
                     
Intercompany sales that are not included in Net Revenues shown above  $2,512,249   $185,337   $948,000   $3,645,586 
                     
Depreciation and Amortization  $474,248   $70,730   $35,877   $580,855 
                     
Purchases of Long-lived Assets  $437,288   $16,807   $85,745   $539,840 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

July 31, 2024 and October 31, 2023

 

NOTE 12 – 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                    
Other Income   8,532    -    -    8,532 
Interest Income   336,858    58,303         395,161 
                     
Total Other Income   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 Benefit   -    -    115,158    115,158 
                     
Total Income Tax (Expense) Benefit   (166,649)   (77,517)   221,769    (22,397)
                     
Net Income (Loss)  $4,051,507   $1,038,662   $(1,645,055)  $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 
                     
Intercompany sales that are not included in Net Revenues shown 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, 2024 and October 31, 2023