v3.26.1
Note 12 - Segment Reporting
 6 Months Ended
Jul. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

12. Segment Reporting

 

Seamap is the Company’s sole reportable segment and contains the following product and service lines:

 

 •GunLink seismic source acquisition and control systems
 •BuoyLink relative global navigation satellite positioning systems
 •SeaLink marine sensors and solid streamer systems 

 

Our Seamap segment provides services and products, including engineering, repairs and software licensing, utilized in marine exploration, marine survey and maritime security for marine survey companies, seismic survey contractors, research institutes, non-military government organizations and operators of port facilities and other offshore installations.

 

Our chief operating decision maker ("CODM") is our chief executive officer. Our CODM analyzes segment performance using revenue and operating income. Inter-company revenue and expenses have been eliminated in the reported revenue and operating income. Our CODM considers revenue and operating income in the annual budgeting and forecasting process and analyzes these on a periodic basis when making determinations on the allocation of resources.

 

Financial information by business segment is set forth below net of any allocations (in thousands):

 

  

Three Months Ended July 31,

 
  

2026

  

2025

 
  

Seamap

  

Corporate Expenses

  

Consolidated

  

Seamap

  

Corporate Expenses

  

Consolidated

 

Revenues

 $5,622  $—  $5,622  $13,561  $—  $13,561 

Cost of sales

  3,532   —   3,532   6,732   —   6,732 

Selling, general and administrative

  1,689   1,566   3,255   1,629   2,008   3,637 

Research and development

  296   111   407   206   105   311 

Depreciation and amortization expense

  224   —   224   213   4   217 

Operating (loss) income

  (119)  (1,677)  (1,796)  4,781   (2,117)  2,664 

Capital expenditures

  88   20   108   181   1   182 

 

  

Six Months Ended July 31,

 
  

2026

  

2025

 
  

Seamap

  

Corporate Expenses

  

Consolidated

  

Seamap

  

Corporate Expenses

  

Consolidated

 

Revenues

 $15,294  $—  $15,294  $21,463  $—  $21,463 

Cost of sales

  9,107   —   9,107   11,303   —   11,303 

Selling, general and administrative

  3,115   3,685   6,800   3,306   3,715   7,021 

Research and development

  518   199   717   508   183   691 

Depreciation and amortization expense

  452   —   452   433   9   442 

Operating income (loss)

  2,102   (3,884)  (1,782)  5,913   (3,907)  2,006 

Capital expenditures

  136   20   156   392   27   419 

 

Corporate selling, general and administrative expense primarily includes salary and benefit costs of corporate personnel, directors’ fees, professional services, office rent, and insurance premiums.

 

The following table presents a reconciliation of operating income (loss) to income (loss) before income taxes (in thousands):

 

  

Three Months Ended July 31,

  

Six Months Ended July 31,

 
  

2026

  

2025

  

2026

  

2025

 

Seamap

  (119)  4,781   2,102   5,913 

Corporate Expenses

  (1,677)  (2,117)  (3,884)  (3,907)

Operating (loss) income

  (1,796)  2,664   (1,782)  2,006 
                 

Other income (expense)

  80   (65)  131   (83)

Income (loss) before income taxes

  (1,716)  2,599   (1,651)  1,923 

 

Total assets by business segment is set forth below (in thousands):

 

  

As of July 31,

 
  

2026

  

2025

 

Seamap

 $34,953  $31,353 

Corporate

  11,737   4,478 

Total Assets

 $46,690  $35,831 

 

Depreciation and Amortization Expense

 

Depreciation expense on property and equipment, reflected in the table above, was approximately $85,000 and $174,000 for the three and six months ended July 31, 2026, respectively and approximately $72,000 and $148,000 for the three and six months ended  July 31, 2025, respectively. Amortization expense primarily relating to intangible assets, reflected in the table above was approximately $139,000 and $279,000 for the three and six months ended July 31, 2026, respectively, and approximately $145,000 and $294,000 for the three and six months ended July 31, 2025. Essentially all depreciation and amortization expense relates to the Seamap segment.

 

Assets

 

All property and equipment is allocated to the Seamap segment. Corporate assets primarily consist of cash, right of use assets for an operating lease, and prepaid corporate expenses. 

 

Geographic Operating Areas

 

Revenue is based on the location of our customers. See Note 4-"Revenue from Contracts with Customers" for disclosure of revenue by geographic area.