v3.22.4
SEGMENT ANALYSIS
 12 Months Ended
Oct. 31, 2022
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

NOTE 13 -SEGMENT ANALYSIS

 

Based on the fundamental difference in the types of offering products versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Segment”) operations are comprised primarily of sale of underwater technology sonar solutions, products for underwater operations including hardware and software, and rental of solutions and products to the underwater market. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provides 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.

 

There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes.

 

The following table summarizes segment asset and operating balances by reportable segment as of and for the years ended October 31, 2022 and 2021, 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, 2022 and 2021

 

NOTE 13 -SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Year Ended October 31, 2022                    
                     
Net Revenues  $14,724,688   $7,501,115   $-   $22,225,803 
                     
Cost of Revenues   2,941,569    4,093,546    -    7,035,115 
                     
Gross Profit   11,783,119    3,407,569    -    15,190,688 
                     
Research & Development   2,207,500    30,420    -    2,237,920 
Selling, General & Administrative   2,563,554    2,654,565    2,730,585    7,948,704 
                     
Total Operating Expenses   4,771,054    2,684,985    2,730,585    10,186,624 
                     
Income (Loss) from Operations   7,012,065    722,584    (2,730,585)   5,004,064 
                     
Other Income (Expense)                    
Other Income   55,715    79,204    3,056    137,975 
Interest Expense   (9,233)   (71)   (400)   (9,704)
                     
Total Other Income   46,482    79,133    2,656   128,271 
                     
Income (Loss) before Income Taxes   7,058,547    801,717    (2,727,929)   5,132,335 
                     
Income Tax (Expense) Benefit                    
Current Tax (Expense) Benefit   (868,162)   39,422    

(176,400

)   

(1,005,140

)
Deferred Tax Benefit (Expense)   31,907    (41,657)   183,776    174,026 
                     
Total Income Tax (Expense) Benefit   

(836,255

)   (2,235)    

7,376

    

(831,114

)
                     
Net Income (Loss)  $6,222,292   $799,482   $

(2,720,553

)  $4,301,221 
                     
Supplemental Disclosures                    
                     
Total Assets  $33,348,805   $12,662,109   $916,544   $46,927,458 
                     
Total Liabilities  $2,432,750   $526,195   $585,704   $3,544,649 
                     
Revenues from Intercompany Sales - eliminated from sales above  $2,406,717   $396,015   $2,720,000   $5,522,732 
                     
Depreciation and Amortization  $602,583   $96,776   $39,370   $738,729 
                     
Purchases of Long-lived Assets  $1,123,475   $36,862   $90,887   $1,251,224 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2022 and 2021

 

NOTE 13 -SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (Products)   Marine Engineering Business (Services)   Overhead   Total 
                 
Year Ended October 31, 2021                    
                     
Net Revenues  $15,804,222   $5,527,305   $-   $21,331,527 
                     
Cost of Revenues   3,169,835    3,391,974    -    6,561,809 
                     
Gross Profit   12,634,387    2,135,331    -    14,769,718 
                     
Research & Development   2,509,107    473,569    -    2,982,676 
Selling, General & Administrative   3,231,733    2,304,300    2,413,492    7,949,525 
                     
Total Operating Expenses   5,740,840    2,777,869    2,413,492    10,932,201 
                     
Income (Loss) from Operations   6,893,547    (642,538)   (2,413,492)   3,837,517 
                     
Other Income (Expense)                    
Other Income   354,373    1,079,374    1,635    1,435,382 
Interest Expense   (1,738)   (365)   (17,552)   (19,655)
                     
Total Other Income (Expense)   352,635    1,079,009    (15,917)   1,415,727 
                     
Income (Loss) before Income Taxes   7,246,182    436,471    (2,429,409)   5,253,244 
                     
Income Tax (Expense) Benefit                    
Current Tax Benefit (Expense)   35,032    (51,624)   -    (16,592)
Deferred Tax (Expense) Benefit   (418,338)   409,205    (279,754)   (288,887)
                     
Total Income Tax (Expense) Benefit   (383,306)   357,581    (279,754)   (305,479)
                     
Net Income (Loss)  $6,862,876   $794,052   $(2,709,163)  $4,947,765 
                     
Supplemental Disclosures                    
                     
Total Assets  $30,631,442   $14,117,747   $716,230   $45,465,419 
                     
Total Liabilities  $3,166,999   $849,306   $400,041   $4,416,346 
                     
Revenues from Intercompany Sales - eliminated from sales above  $2,075,387   $355,608   $3,470,000   $5,900,995 
                     
Depreciation and Amortization  $780,434   $114,022   $29,617   $924,073 
                     
Purchases of Long-lived Assets  $793,995   $51,907   $118,302   $964,204 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2022 and 2021