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SEGMENT ANALYSIS
 3 Months Ended
Jan. 31, 2025
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 – SEGMENT ANALYSIS

 

We operate three reportable segments, “Marine Technology Products Business”, “Acoustic Sensors and Materials Business” and “Service Business” which are managed separately based upon fundamental differences in their operations, allocation of resources and markets.

 

Segment operating income is total segment revenue reduced by cost of revenues and operating expenses (research and development and selling, general & administrative) identifiable with the reporting business segment. Overhead includes general corporate administrative costs.

 

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the critical accounting policies in Item 2 of this Form 10-Q. Our CODM regularly reviews consolidated net sales, consolidated operating expenses, and consolidated operating income (loss) by segment. Amounts included in consolidated operating expenses include “cost of sales,” “R&D expenses”, “selling, general and administrative expenses,” and “other operating expense (income), net”. Our CODM manages our business by reviewing business plans and strategy, annual forecasts and consolidated results by segment on a quarterly basis.

 

There are inter-segment sales in the supplemental disclosures section of the table below which have been eliminated from our financial statements. There are no internal revenue transactions between our reportable segments. However, for the purpose of segment reporting, these inter-segment sales are only included in the table below.

 

● Marine Technology Business

 

The Marine Technology Business (“Products Business”) is a supplier to the underwater/subsea market and selling both hardware and software solutions which includes imaging sonar technology solutions, diving technology, geophysical products, rental equipment, customization, and field operations services.

 

● Acoustic Sensors and Materials Business

 

The Company acquired Precision Acoustics Limited (PAL) on October 29, 2024. PAL is a supplier of acoustic sensors and materials. PAL serves a broad base of markets such as the medical, subsea, defense, universities and research and development institutes.

 

● Services Business

 

The Services Business operate primarily as subcontractors to prime defense contractors where they provide engineering services which typically form part of larger mission critical defense systems.

 

The following tables summarize segment asset and operating balances by reportable segment for the three months ended January 31, 2025 and 2024, 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, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business   Acoustic Sensors and Materials Business (“PAL”)   Marine Engineering Business   Overhead   Total 
                     
Three Months Ended January 31, 2025                         
                          
Net Revenues  $2,275,809   $1,312,261   $1,621,645   $-   $5,209,715 
                          
Cost of Revenues   612,168    502,117    666,960    -    1,781,245 
                          
Gross Profit   1,663,641    810,144    954,685    -    3,428,470 
                          
Research & Development   405,812    90,964    46,350    -    543,126 
Selling, General & Administrative   565,864    238,254    637,896    781,308    2,223,322 
                          
Total Operating Expenses   971,676    329,218    684,246    781,308    2,766,448 
                          
Income (Loss) from Operations   691,965    480,926    270,439    (781,308)   662,022 
                          
Other Income                         
Other Income   5,846    72,821    -    -    78,667 
Interest Income   155,313    2,302    27,356    9,200    194,171 
                          
Total Other Income   161,159    75,123    27,356    9,200    272,838 
                          
Income (Loss) before Income Taxes   853,124    556,049    297,795    (772,108)   934,860 
                          
Income Tax (Expense) Benefit                         
Current Tax (Expense)   (48,874)   -    -    -    (48,874)
Deferred Tax Benefit   -    -    -    26,989    26,989 
                          
Total Income Tax (Expense) Benefit   (48,874)   -    -    26,989    (21,885)
                          
Net Income (Loss)  $804,250   $556,049   $297,795   $(745,119)  $912,975 
                          
Supplemental Disclosures                         
                          
Total Assets  $34,107,320   $6,558,739   $13,573,805   $2,657,434   $56,897,298 
                          
Total Liabilities  $1,586,101   $1,027,551   $730,161   $440,428   $3,784,241 
                          
Intercompany sales that are not included in Net Revenues shown above  $922,331   $2,752   $18,813   $312,000   $1,255,896 
                          
Depreciation and Amortization  $147,331   $156,370   $16,704   $13,000   $333,405 
                          
Purchases of Long-lived Assets  $18,298   $107,342   $2,468   $-   $128,108 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2025 and October 31, 2024

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

In the Segment Analysis information presented for the Previous Quarter, there is no information for the Acoustics Sensors and Material Business (“PAL”) as this business unit was acquired on October 29, 2024.

 

   Marine Technology Business   Marine Engineering Business   Overhead   Total 
                 
Three Months Ended January 31, 2024                    
                     
Net Revenues  $3,542,766   $918,425   $-   $4,461,191 
                     
Cost of Revenues   973,880    400,575    -    1,374,455 
                     
Gross Profit   2,568,886    517,850    -    3,086,736 
                     
Research & Development   461,375    24,602    -    485,977 
Selling, General & Administrative   835,391    600,484    609,500    2,045,375 
                     
Total Operating Expenses   1,296,766    625,086    609,500    2,531,352 
                     
Income (Loss) from Operations   1,272,120    (107,236)   (609,500)   555,384 
                     
Other Income                    
Other Income   20,306    14,714    -    35,020 
Interest Income   135,731    56,809    -    192,540 
                     
Total Other Income   156,037    71,523    -    227,560 
                     
Income (Loss) before Income Taxes   1,428,157    (35,713)   (609,500)   782,944 
                     
Income Tax (Expense) Benefit                    
Current Tax (Expense) Benefit   (35,540)   -    69,555    34,015 
Deferred Tax Benefit (Expense)   27,328    -    (214,399)   (187,071)
                     
Total Income Tax (Expense) Benefit   (8,212)   -    (144,844)   (153,056)
                     
Net Income (Loss)  $1,419,945   $(35,713)  $(754,344)  $629,888 
                     
Supplemental Disclosures                    
                     
Total Assets  $36,685,343   $13,298,356   $3,029,244   $53,012,943 
                     
Total Liabilities  $1,963,391   $429,635   $470,239   $2,863,265 
                     
Intercompany sales that are not included in Net Revenues shown above  $948,934   $10,790   $312,000   $1,271,724 
                     
Depreciation and Amortization  $153,019   $25,357   $12,162   $190,538 
                     
Purchases of Long-lived Assets  $132,423   $2,208   $27,845   $162,476 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2025 and October 31, 2024