v3.26.3
SEGMENT ANALYSIS
 9 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
SEGMENT ANALYSIS

Note 15 – SEGMENT ANALYSIS

 

The Company operates through three reportable segments: the Marine Technology Business, Acoustics Sensors and Materials Business, and Defense Engineering Services Business (collectively, the “Business Segments”).

 

The Business Segments are managed separately due to differences in their products and services, customer bases, markets served, operational characteristics, and resource requirements. Segment operating income is determined as segment revenue less cost of revenues and directly attributable operating expenses, including research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses. Corporate expenses consist primarily of general corporate administrative costs and are not allocated to the reportable segments.

 

The Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the performance of the Business Segments using segment revenues, operating expenses and operating income prepared in accordance with U.S. GAAP. Segment operating income is the primary measure of segment profit or loss used by the CODM to assess segment performance, allocate resources, evaluate operating trends, assess investment opportunities, and monitor actual results against budgets and forecasts.

 

The revenues presented in this Note 15 represent sales to external customers. Intercompany transactions between reportable segments are eliminated in consolidation and are therefore excluded from consolidated revenues. Supplemental information regarding intercompany sales is presented below for segment reporting purposes.

 

Marine Technology Business (“Products”)

 

The Marine Technology Business develops, manufactures and supplies underwater technologies for commercial and government customers. Its principal products include real-time 3D imaging sonar systems and diving augmented reality technologies through near eye displays for subsea applications.

 

Acoustics Sensors and Materials Business (“PAL”)

 

PAL develops and supplies acoustic sensors, acoustic testing environments and acoustic materials. Its sensor technologies are used in precision ultrasonic measurement applications across a diverse range of markets, including medical, subsea, defense, academic and research institutions.

 

Defense Engineering Services Business (“Services”)

 

The Defense Engineering Services Business consists of two operational units, one located in the United States and one located in the United Kingdom. These operations primarily provide engineering services and proprietary subassemblies to prime defense contractors for integration into larger mission-critical defense systems.

 

The following tables summarize segment asset and operating balances by reportable segment for the three and nine months ended July 31, 2026, and 2025, respectively.

 

The Company’s reportable segments generate revenues from customers located in the following geographic regions:

 

●Americas
   
●Europe
   
●Asia-Pacific (including Australia)
   
●Middle East and Africa

 

Revenue information by geographic region is based on the location of the end customer.

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2026 and October 31, 2025

 

Note 15 - SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustics Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   Total 
                     
Three Months Ended July 31, 2026                         
                          
Net Revenues  $3,377,472   $1,610,920   $2,729,077    $-   $7,717,469 
                          
Cost of Revenues   725,321    766,415    1,175,439    -    2,667,175 
                          
Gross Profit   2,652,151    844,505    1,553,638    -    5,050,294 
                          
Research & Development   473,749    155,494    99,973    -    729,216 
Selling, General & Administrative   1,328,538    489,162    546,630    423,473    2,787,803 
                          
Total Operating Expenses   1,802,287    644,656    646,603    423,473    3,517,019 
                          
Income (Loss) from Operations   849,864    199,849    907,035    (423,473)   1,533,275 
                          
Other Income                         
Other Income   2,902    21,357    -    -    24,259 
Interest Income   146,761    1,213    69,863    15,980    233,817 
                          
Total Other Income, net   149,663    22,570    69,863    15,980    258,076 
                          
Income (Loss) before Income Taxes   999,527    222,419    976,898    (407,493)   1,791,351 
                          
Income Tax (Expense) Benefit                         
Current Tax (Expense)   (74,151)   (10,017)   (27,478)   (296,937)   (408,583)
Deferred Tax Benefit   -    -    -    6,844    6,844 
                          
Total Income Tax (Expense)   (74,151)   (10,017)   (27,478)   (290,093)   (401,739)
                          
Net Income (Loss)  $925,376   $212,402   $949,420   $(697,586)  $1,389,612 
                          
Supplemental Disclosures                         
                          
Total Assets  $39,788,972   $7,695,001   $16,849,840   $4,519,553   $68,853,366 
                          
Total Liabilities  $2,696,910   $1,506,817   $1,717,308   $201,519   $6,122,554 
                          
Revenues from Intercompany Sales - eliminated from sales above  $1,054,648   $36   $12,289   $

775,000

   $

1,841,973

 
                          
Depreciation and Amortization  $155,755   $186,790   $20,965   $12,681   $376,191 
                          
Purchases of Long-lived Assets  $2,261   $13,061   $60,532   $86,361   $162,215 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2026 and October 31, 2025

 

Note 15 – SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustics Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   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, net   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 Benefit (Expense)                         
Current Tax Benefit (Expense)   363    (3,160)    (46,389)    (219,600)    (268,786) 
Deferred Tax Benefit   -    -    -    8,022    8,022 
                          
Total Income Tax Benefit (Expense)   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, 2026 and October 31, 2025

 

NOTE 15 – SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustics Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   Total 
                     
Nine Months Ended July 31, 2026                         
                          
Net Revenues  $9,572,067   $4,720,503   $7,039,023   $-   $21,331,593 
                          
Cost of Revenues   2,208,198    1,997,792    3,130,226    -    7,336,216 
                          
Gross Profit   7,363,869    2,722,711    3,908,797    -    13,995,377 
                          
Research & Development   1,326,692    376,070    280,860    -    1,983,622 
Selling, General & Administrative   3,195,464    1,411,414    1,664,620    1,403,936    7,675,434 
                          
Total Operating Expenses   4,522,156    1,787,484    1,945,480    1,403,936    9,659,056 
                          
Income (Loss) from Operations   2,841,713    935,227    1,963,317    (1,403,936)   4,336,321 
                          
Other Income                         
Other Income   146,492    50,961    -    -    197,453 
Interest Income   405,843    3,350    124,873    43,936    578,002 
                          
Total Other Income, net   552,335    54,311    124,873    43,936    775,455 
                          
Income (Loss) before Income Taxes   3,394,048    989,538    2,088,190    (1,360,000)   5,111,776 
                          
Income Tax (Expense) Benefit                         
Current Tax (Expense)   (202,888)   (237,999)   (206,284)   (456,831)   (1,104,002)
Deferred Tax Benefit   -    -    -    10,371    10,371 
                          
Total Income Tax (Expense)   (202,888)   (237,999)   (206,284)   (446,460)   (1,093,631)
                          
Net Income (Loss)  $3,191,160   $751,539   $1,881,906   $(1,806,460)  $4,018,145 
                          
Supplemental Disclosures                         
                          
Total Assets  $39,788,972   $7,695,001   $16,849,840   $4,519,553   $68,853,366 
                          
Total Liabilities  $2,696,910   $1,506,817   $1,717,308   $201,519   $6,122,554 
                          
Revenues from Intercompany Sales - eliminated from sales above  $2,582,528   $22,045   $74,038   $2,325,000   $5,003,611 
                          
Depreciation and Amortization  $439,171   $557,030   $57,647   $37,905   $1,091,753 
                          
Purchases of Long-lived Assets  $95,080   $57,464   $83,483   $129,700   $365,727 

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Unaudited Consolidated Financial Statements

July 31, 2026 and October 31, 2025

 

Note 15 – SEGMENT ANALYSIS (Continued)

 

   Marine Technology Business (“Products”)   Acoustics Sensors and Materials Business (“PAL”)   Defense Engineering Services Business (“Services”)   Corporate   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, net   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, 2026 and October 31, 2025