v3.26.1
SEGMENT ANALYSIS
 6 Months Ended
Apr. 30, 2026
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

Note 15 – SEGMENT ANALYSIS

 

We operate three reportable segments, “Marine Technology Business”, “Acoustic Sensors and Materials Business”, and the “Defense Engineering Services Business” (together the “Business Segments”).

 

These Business Segments are managed separately based upon fundamental differences in their operations, market segments and resource allocation. Segment operating income is total segment revenue reduced by cost of revenues and operating expenses, R&D and SG&A identifiable with the reporting business segment. Corporate expenses include general corporate administrative costs.

 

Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer. The CODM evaluates the operating results and performance of all Business Segments using GAAP reporting for revenue, expenses, and net income by segment. This financial information is used to assess operating trends, perform analytical comparisons, benchmark performance between periods and across geographic regions, make investment decisions, and monitor budget-to- actual performance on a monthly, quarterly and annual basis.

 

The net revenues shown in this Note 15 in the tables below comprise sales that have been made externally. Inter-company sales between our reportable segments are eliminated from our consolidated income statement. For segment reporting purposes, we have, however, included in the Supplemental Disclosures below information on inter-company sales in the reporting period. Inter-company sales are not included in our consolidated net revenues reported.

 

● Marine Technology Business (“Products”)

 

The Marine Technology Business constitutes our core business in the Group and receives most of our resource allocation. It is a supplier of various underwater technologies, including new generation real time 3D imaging sensors and augmented reality diving technologies to the subsea market.

 

● Acoustic Sensors and Materials Business (“PAL”)

 

PAL is a supplier of acoustic sensors, acoustics tests environments, and acoustics materials. PAL’s sensors are primarily used for precision ultrasonic measurement, serving a broad range of markets including medical, subsea, defense, universities, and research and development institutes.

 

● Defense Engineering Services Business (“Services”)

 

The Defense Engineering Services Business consists of two discrete business operations – one U.S.- based and the other U.K.- based. They operate primarily as subcontractors to prime defense contractors providing engineering services and supplying proprietary sub-assemblies that typically form part of larger mission critical defense systems.

 

The following tables summarize segment asset and operating balances by reportable segment for the three and six months ended April 30, 2026, and 2025, 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

April 30, 2026 and October 31, 2025

 

NOTE 15 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustic Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   Total 
                     
Three Months Ended April 30, 2026                         
                          
Net Revenues  $2,839,592   $1,525,824   $2,538,596   $-   $6,904,012 
                          
Cost of Revenues   654,497    706,200    965,266    -    2,325,963 
                          
Gross Profit   2,185,095    819,624    1,573,330    -    4,578,049 
                          
Research & Development   456,067    110,567    81,670    -    648,304 
Selling, General & Administrative   785,292    429,144    546,478    375,855    2,136,769 
                          
Total Operating Expenses   1,241,359    539,711    628,148    375,855    2,785,073 
                          
Income (Loss) from Operations   943,736    279,913    945,182    (375,855)   1,792,976 
                          
Other Income                         
Other Income   139,160    29,601    -    -    168,761 
Interest Income   133,657    891    32,205    5,162    171,915 
                          
Total Other Income, net   272,817    30,492    32,205    5,162    340,676 
                          
Income (Loss) before Income Taxes   1,216,553    310,405    977,387    (370,693)   2,133,652 
                          
Income Tax (Expense) Benefit                         
Current Tax Benefit (Expense)   39,814    (123,260)   (148,826)   (199,931)   (432,203)
Deferred Tax (Expense)   -    -    -    (3,639)   (3,639)
                          
Total Income Tax Benefit (Expense)   39,814    (123,260)   (148,826)   (203,570)   (435,842)
                          
Net Income (Loss)  $1,256,367   $187,145   $828,561   $(574,263)  $1,697,810 
                          
Supplemental Disclosures                         
                          
Total Assets  $39,029,688   $7,862,369   $16,054,543   $4,392,180   $67,338,780 
                          
Total Liabilities  $2,248,580   $1,884,988   $1,686,912   $104,068   $5,924,548 
                          
Revenues from Intercompany Sales - eliminated from sales above  $992,105   $9,175   $41,173   $775,000   $1,817,453 
                          
Depreciation and Amortization  $136,594   $182,744   $18,311   $12,021   $349,670 
                          
Purchases of Long-lived Assets  $30,427   $32,542   $14,957   $43,339   $121,265 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 2026 and October 31, 2025

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustic Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   Total 
                     
Three Months Ended April 30, 2025                         
                          
Net Revenues  $3,878,090   $1,299,069   $1,840,300   $-   $7,017,459 
                          
Cost of Revenues   1,251,417    449,664    819,097    -    2,520,178 
                          
Gross Profit   2,626,673    849,405    1,021,203    -    4,497,281 
                          
Research & Development   565,385    95,266    29,344    -    689,995 
Selling, General & Administrative   1,097,358    608,923    540,091    473,230    2,719,602 
                          
Total Operating Expenses   1,662,743    704,189    569,435    473,230    3,409,597 
                          
Income (Loss) from Operations   963,930    145,216    451,768    (473,230)   1,087,684 
                          
Other Income                         
Other Income   4,967    27,365    -    -    32,332 
Interest Income   86,358    1,290    25,954    31,992    145,594 
                          
Total Other Income   91,325    28,655    25,954    31,992    177,926 
                          
Income (Loss) before Income Taxes   1,055,255    173,871    477,722    (441,238)   1,265,610 
                          
Income Tax (Expense)                         
Current Tax (Expense)   (32,658)   (167,083)   -    (174,960)   (374,701)
Deferred Tax Benefit   -    -    -    17,853    17,853 
                          
Total Income Tax (Expense)   (32,658)   (167,083)   -    (157,107)   (356,848)
                          
Net Income (Loss)  $1,022,597   $6,788   $477,722   $(598,345)  $908,762 
                          
Supplemental Disclosures                         
                          
Total Assets  $37,175,601   $7,036,570   $13,538,446   $2,839,527   $60,590,144 
                          
Total Liabilities  $2,689,882   $1,241,450   $609,333   $160,982   $4,701,647 
                          
Revenues from Intercompany Sales - eliminated from sales above  $2,189,543   $19,339   $83,921   $300,000   $2,592,803 
                          
Depreciation and Amortization  $134,486   $173,022   $15,823   $12,336   $335,667 
                          
Purchases of Long-lived Assets  $4,997   $6,635   $12,579   $-   $24,211 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 2026 and October 31, 2025

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustic Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   Total 
                     
Six Months Ended April 30, 2026                         
                          
Net Revenues  $6,194,595   $3,109,583   $4,309,946   $-   $13,614,124 
                          
Cost of Revenues   1,482,877    1,231,377    1,954,787    -    4,669,041 
                          
Gross Profit   4,711,718    1,878,206    2,355,159    -    8,945,083 
                          
Research & Development   852,943    220,576    180,887    -    1,254,406 
Selling, General & Administrative   1,866,926    922,252    1,117,990    980,463    4,887,631 
                          
Total Operating Expenses   2,719,869    1,142,828    1,298,877    980,463    6,142,037 
                          
Income (Loss) from Operations   1,991,849    735,378    1,056,282    (980,463)   2,803,046 
                          
Other Income                         
Other Income   143,590    29,604    -    -    173,194 
Interest Income   259,082    2,137    55,010    27,956    344,185 
                          
Total Other Income, net   402,672    31,741    55,010    27,956    517,379 
                          
Income (Loss) before Income Taxes   2,394,521    767,119    1,111,292    (952,507)   3,320,425 
                          
Income Tax (Expense) Benefit                         
Current Tax (Expense)   (128,737)   (227,982)   (178,806)   (159,894)   (695,419)
Deferred Tax Benefit   -    -    -    3,527    3,527 
                          
Total Income Tax (Expense)    (128,737)   (227,982)   (178,806)   (156,367)   (691,892)
                          
Net Income (Loss)  $2,265,784   $539,137   $932,486   $(1,108,874)  $2,628,533 
                          
Supplemental Disclosures                         
                          
Total Assets  $39,029,688   $7,862,369   $16,054,543   $4,392,180   $67,338,780 
                          
Total Liabilities  $2,248,580   $1,884,988   $1,686,912   $104,068   $5,924,548 
                          
Revenues from Intercompany Sales - eliminated from sales above  $1,527,880   $22,009   $61,749   $1,550,000   $3,161,638 
                          
Depreciation and Amortization  $283,416   $370,240   $36,682   $25,224   $715,562 
                          
Purchases of Long-lived Assets  $92,820   $44,403   $22,951   $43,339   $203,513 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 2026 and October 31, 2025

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustic Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   Total 
                     
Six Months Ended April 30, 2025                         
                          
Net Revenues  $6,153,899   $2,611,330   $3,461,945   $-   $12,227,174 
                          
Cost of Revenues   1,863,585    951,781    1,486,057    -    4,301,423 
                          
Gross Profit   4,290,314    1,659,549    1,975,888    -    7,925,751 
                          
Research & Development   971,197    186,230    75,694    -    1,233,121 
Selling, General & Administrative   1,663,222    847,177    1,177,987    1,254,538    4,942,924 
                          
Total Operating Expenses   2,634,419    1,033,407    1,253,681    1,254,538    6,176,045 
                          
Income (Loss) from Operations   1,655,895    626,142    722,207    (1,254,538)   1,749,706 
                          
Other Income                         
Other Income   10,813    100,186    -    -    110,999 
Interest Income   241,671    3,592    53,310    41,192    339,765 
                          
Total Other Income   252,484    103,778    53,310    41,192    450,764 
                          
Income (Loss) before Income Taxes   1,908,379    729,920    775,517    (1,213,346)   2,200,470 
                          
Income Tax (Expense) Benefit                         
Current Tax (Expense)   (81,532)   (167,083)   -    (174,960)   (423,575)
Deferred Tax Benefit   -         -    44,842    44,842 
                          
Total Income Tax (Expense) Benefit   (81,532)   (167,083)   -    (130,118)   (378,733)
                          
Net Income (Loss)  $1,826,847   $562,837   $775,517   $(1,343,464)  $1,821,737 
                          
Supplemental Disclosures                         
                          
Total Assets  $37,175,601   $7,036,570   $13,538,446   $2,839,527   $60,590,144 
                          
Total Liabilities  $2,689,882   $1,241,450   $609,333   $160,982   $4,701,647 
                          
Revenues from Intercompany Sales - eliminated from sales above  $3,111,874   $22,091   $102,734   $612,000   $3,848,699 
                          
Depreciation and Amortization  $281,817   $329,392   $32,527   $25,336   $669,072 
                          
Purchases of Long-lived Assets  $23,295   $113,977   $15,047   $-   $152,319 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

April 30, 2026 and October 31, 2025