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SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 2025
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 15 – SEGMENT ANALYSIS

 

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

 

Segment operating income is total segment net 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 Chief Operating Decision Maker (“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.

 

The net revenues shown in this Note 15 in the tables below comprise sales which have been made externally and exclude sales between the companies within the Group (“Inter-Company Sales”). For segment reporting purposes we have, nevertheless, included in the Supplemental Disclosures in the tables below, information on Inter-Company Sales in the reporting period. Inter-Company sales are not included in our net revenues.

 

● Marine Technology Business

 

The Marine Technology Business constitutes our core business in the Group and is a supplier of various technologies to the underwater/subsea market. Its key technologies are its real time 3D volumetric imaging sonars, Echoscope®, and diving solutions (DAVD). It also supplies a suite of geophysical products, inertial navigation sensors, digital audio communications systems, rental equipment, customization of technology services and field support 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. PAL also performs calibration services for medical devices and is accredited to ISO/IEC 17025 standard. PAL is one of only two organizations in the United Kingdom with this certification, alongside the National Physical Laboratory (NPL). Globally, only a handful of facilities hold ISO/IEC 17025 accreditation for these measurements. Ultrasonic free-field sensitivity calibration is critical for markets that require precision ultrasonic measurement, strict safety compliance, and full metrological traceability. These include regulated and high-risk applications, such as diagnostic and therapeutic medical ultrasound and defense and underwater acoustics, where free-field calibration is essential to ensure accurate beam sensitivity and minimal interference.

 

● Marine Engineering Business

 

The Marine Engineering Business operates primarily as subcontractors to prime defense contractors where they provide engineering services and supplies proprietary sub-assemblies 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 and nine months ended July 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 Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustic Sensors and Materials Business
(“PAL”)		  

Marine

Engineering

Business (“Engineering”)		   Overhead   Total 
                     
Three Months Ended July 31, 2025                         
                          
Net Revenues  $3,984,475   $1,458,536   $1,621,784   $-   $7,064,795 
                          
Cost of Revenues   915,778    659,377    665,884    -    2,241,039 
                          
Gross Profit   3,068,697    799,159    955,900    -    4,823,756 
                          
Research & Development   428,007    98,502    45,959    -    572,468 
Selling, General & Administrative   1,342,856    451,588    662,604    414,261    2,871,309 
                          
Total Operating Expenses   1,770,863    550,090    708,563    414,261    3,443,777 
                          
Income (Loss) from Operations   1,297,834    249,069    247,337    (414,261)   1,379,979 
                          
Other Income                         
Other Income   7,027    1,895    -    -    8,922 
Interest Income   121,878    1,144    29,998    1,828    154,848 
                          
Total Other Income   128,905    3,039    29,998    1,828    163,770 
                          
Income (Loss) before Income Taxes   1,426,739    252,108    277,335    (412,433)   1,543,749 
                          
Income Tax (Expense) Benefit                         
Current Tax (Expense)   363   (3,160)   (46,389)   (219,600)   (268,786)
Deferred Tax Benefit   -    -    -    8,022    8,022 
                          
Total Income Tax (Expense) Benefit   363   (3,160)   (46,389)   (211,578)    (260,764)
                          
Net Income (Loss)  $1,427,102   $248,948   $230,946   $(624,011)  $1,282,985 
                          
Supplemental Disclosures                         
                          
Total Assets  $38,121,854   $6,838,086   $13,485,367   $3,467,751   $61,913,058 
                          
Total Liabilities  $2,313,810   $1,215,699   $744,611   $367,192   $4,641,312 
                          
Revenues from Intercompany Sales - eliminated from sales above  $2,108,899   $22,914   $171,218   $1,563,000   $3,866,031 
                          
Depreciation and Amortization  $142,362   $196,344   $16,446   $13,143   $368,295 
                          
Purchases of Long-lived Assets  $210,225   $20,072   $10,050   $-   $240,347 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

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

 

  

Marine Technology Business

(“Products”)

  

Marine

Engineering

Business (“Engineering”)		   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) Benefit                    
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 
                     
Revenues from Intercompany Sales - eliminated from sales 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 Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustic Sensors and Materials Business
(“PAL”)		  

Marine

Engineering

Business (“Engineering”)		   Overhead   Total 
                     
Nine Months Ended July 31, 2025                         
                          
Net Revenues  $10,138,374   $4,069,866   $5,083,729   $-   $19,291,969 
                          
Cost of Revenues   2,779,363    1,611,158    2,151,941    -    6,542,462 
                          
Gross Profit   7,359,011    2,458,708    2,931,788    -    12,749,507 
                          
Research & Development   1,399,204    284,732    121,653    -    1,805,589 
Selling, General & Administrative   3,006,078    1,298,765    1,840,591    1,668,799    7,814,233 
                          
Total Operating Expenses   4,405,282    1,583,497    1,962,244    1,668,799    9,619,822 
                          
Income (Loss) from Operations   2,953,729    875,211    969,544    (1,668,799)   3,129,685 
                          
Other Income                         
Other Income   17,840    102,081    -    -    119,921 
Interest Income   363,549    4,736    83,308    43,020    494,613 
                          
Total Other Income   381,389    106,817    83,308    43,020    614,534 
                          
Income (Loss) before Income Taxes   3,335,118    982,028    1,052,852    (1,625,779)   3,744,219 
                          
Income Tax (Expense) Benefit                         
Current Tax (Expense)   (81,169)   (170,243)   (46,389)   (394,560)   (692,361)
Deferred Tax Benefit   -    -    -    52,864    52,864 
                          
Total Income Tax (Expense)   (81,169)   (170,243)   (46,389)   (341,696)   (639,497)
                          
Net Income (Loss)  $3,253,949   $811,785   $1,006,463   $(1,967,475)  $3,104,722 
                          
Supplemental Disclosures                         
                          
Total Assets  $38,121,854   $6,838,086   $13,485,367   $3,467,751   $61,913,058 
                          
Total Liabilities  $2,313,810   $1,215,699   $744,611   $367,192   $4,641,312 
                          
Revenues from Intercompany Sales - eliminated from sales above  $5,220,773   $45,005   $273,952   $2,175,000   $7,714,730 
                          
Depreciation and Amortization  $424,179   $525,736   $48,973   $38,479   $1,037,367 
                          
Purchases of Long-lived Assets  $233,519   $134,049   $25,098   $-   $392,666 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Marine Engineering Business (“Engineering”)   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) Benefit                    
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 
                     
Revenues from Intercompany Sales - eliminated from sales 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 Unaudited Consolidated Financial Statements

July 31, 2025 and October 31, 2024