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SEGMENT ANALYSIS
 12 Months Ended
Oct. 31, 2024
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 -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. Up until October 29, 2024, the Products Segment was constituted by our Marine Technology Business. On October 29, 2024, we acquired an additional business unit within the Products Segment, PAL. For the purposes of this Note 15, PAL is excluded from the Consolidated Statements of Income and Comprehensive Income since this entity was acquired on October 29, 2024, and it had no material Income Statement activity in the two days from the acquisition date to the end of the Company’s fiscal end on October 31, 2024. However, the fair value of assets acquired, and liabilities assumed for PAL, have been included in our Consolidated Balance Sheet and in respect of the Segment information provided immediately below, PAL is included in the Supplemental Disclosure information in the table below but not in the income and expense statement.

 

The Company evaluates performance and resources based upon operating income.

 

There are inter-segment sales in the table below which have been eliminated from our financial statements. Inter-company sales are not included in our financial statements. For segment reporting purposes we have shown in the table below our inter-company sales during the reporting period.

 

Coda Octopus Products (with entities operating in the UK, USA and Denmark) constitute the Marine Technology Business (“Products Segment”) where it 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). PAL is a supplier of products to the ultrasound, acoustic measurement and NDT market. 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 table summarizes segment asset and operating balances by reportable segment as of and for the years ended October 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

October 31, 2024 and 2023

 

   Products   Services   Overhead    Total 
                  
Year Ended October 31, 2024                     
                      
Net Revenues  $12,806,603   $7,509,558   $-    $20,316,161 
                      
Cost of Revenues   2,824,541    3,318,515    -     6,143,056 
                      
Gross Profit   9,982,062    4,191,043    -     14,173,105 
                      
Research & Development   2,019,112    223,317    -     2,242,429 
Selling, General & Administrative   3,814,860    2,248,493    2,283,192     8,346,545 
                      
Total Operating Expenses   5,833,972    2,471,810    2,283,192     10,588,974 
                      
Income (Loss) from Operations   4,148,090    1,719,233    (2,283,192)    3,584,131 
                      
Other Income                     
Other Income   53,960    34,422    -     88,382 
Interest Income   657,817    198,239    82,719     938,775 
                      
Total Other Income   711,777    232,661    82,719     1,027,157 
                      
Income (Loss) before Income Taxes   4,859,867    1,951,894    (2,200,473)    4,611,288 
                      
Income Tax Expense                     
Current Tax Expense   316,955   169,374    227,341    713,670
Deferred Tax Expense (Benefit)   (5,655)   19,169    238,108    251,622
                      
Total Income Tax Expense   311,300   188,543    465,449    965,292
                      
Net Income (Loss)  $4,548,567   $1,763,351   $(2,665,922)   $3,645,996 
                      
Supplemental Disclosures                     
                      
*Total Assets  $40,922,453   $13,404,567   $3,217,524    $57,544,544 
                      
*Total Liabilities  $3,072,876   $842,450   $500,695    $4,416,021 
                      
Revenues from Intercompany Sales - eliminated from sales above  $3,367,839   $238,143   $1,266,000    $4,871,982 
                      
Depreciation and Amortization  $632,882   $88,166   $49,487    $770,535 
                      
Purchases of Long-lived Assets  $345,191   $23,786   $89,103    $458,079 

 

* The Total Assets and Total Liabilities included in the Supplemental Disclosures include PAL

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2024 and 2023

 

   Products   Services   Overhead   Total 
                 
Year Ended October 31, 2023                    
                     
Net Revenues  $12,119,066   $7,233,022   $-   $19,352,088 
                     
Cost of Revenues   2,819,796    3,501,237    -    6,321,033 
                     
Gross Profit   9,299,270    3,731,785    -    13,031,055 
                     
Research & Development   2,043,890    52,577    -    2,096,467 
Selling, General & Administrative   3,109,566    2,463,087    2,622,383    8,195,036 
                     
Total Operating Expenses   5,153,456    2,515,664    2,622,383    10,291,503 
                     
Income (Loss) from Operations   4,145,814    1,216,121    (2,622,383)   2,739,552 
                     
Other Income                    
Other Income   39,146    -    -    39,146 
Interest Income   544,892    97,638    -    642,530 
                     
Total Other Income   584,038    97,638    -    681,676 
                     
Income (Loss) before Income Taxes   4,729,852    1,313,759    (2,622,383)   3,421,228 
                     
Income Tax Expense (Benefit)                    
Current Tax Expense (Benefit)   272,126   78,876   (102,347)   248,655
Deferred Tax Expense (Benefit)   115,954   (54,382)   (13,148)   48,424
                     
Total Income Tax Expense (Benefit)   388,080   24,494   (115,495)   297,079
                     
Net Income (Loss)  $4,341,772   $1,289,265   $(2,506,888)  $3,124,149 
                     
Supplemental Disclosures                    
                     
Total Assets  $36,969,673   $13,604,262   $1,267,581   $51,841,516 
                     
Total Liabilities  $2,263,761   $732,582   $416,407   $3,412,750 
                     
Revenues from Intercompany Sales - eliminated from sales above  $4,602,741   $584,622   $1,200,000   $6,387,363 
                     
Depreciation and Amortization  $523,339   $100,689   $43,502   $667,530 
                     
Purchases of Long-lived Assets  $1,996,544   $25,404   $108,392   $2,130,340 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2024 and 2023