SEGMENT ANALYSIS

3 Months Ended

Jan. 31, 2024

Segment Reporting [Abstract]

SEGMENT ANALYSIS

NOTE 12 – SEGMENT ANALYSIS

We operate in two reportable segments, “Products Business” and “Service Business” which are managed separately based upon fundamental differences in their operations. Segment operating income is total Segment revenue reduced by cost of revenues and operating expenses (research and development and Selling, General & Administrative) identifiable with the reporting business segment. Overheads include 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.

There are inter-segment sales in the table below which have been eliminated from our financial statements. However, for the purpose of segment reporting, these inter-segment sales are only included in the table below.

Coda Octopus Products constitute the Marine Technology Business (“Products Segment”) is a supplier to the underwater/subsea market and selling both hardware and software solutions which includes imaging sonar technology solutions, diving technology, geophysical products, rental equipment, customization, and field operations services. Coda Octopus Colmek, Inc. and Coda Octopus Martech Ltd constitute the Marine Engineering Business (“Services Segment”) and are engineering subcontractors to prime defense contractors.

The following tables summarize segment asset and operating balances by reportable segment for the three months ended January 31, 2024 and 2023, 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

January 31, 2024 and October 31, 2023

NOTE 12 -SEGMENT ANALYSIS (Continued)

	Marine Technology Business (Products)			Marine Engineering Business (Services)			Overhead			Total
Three Months Ended January 31, 2024
Net Revenues	$	3,542,766		$	918,425		$	-		$	4,461,191
Cost of Revenues		973,880			400,575			-			1,374,455
Gross Profit		2,568,886			517,850			-			3,086,736
Research & Development		461,375			24,602			-			485,977
Selling, General & Administrative		835,391			600,484			609,500			2,045,375
Total Operating Expenses		1,296,766			625,086			609,500			2,531,352
Income (Loss) from Operations		1,272,120			(107,236	)		(609,500	)		555,384
Other Income
Other Income		20,306			14,714			-			35,020
Interest Income		135,731			56,809			-			192,540
Total Other Income		156,037			71,523			-			227,560
Income (Loss) before Income Taxes		1,428,157			(35,713	)		(609,500	)		782,944
Income Tax (Expense) Benefit
Current Tax (Expense) Benefit		(35,540	)		-			69,555			34,015
Deferred Tax (Expense) Benefit		27,328			-			(214,399	)		(187,071	)
Total Income Tax (Expense) Benefit		(8,212	)		-			(144,844	)		(153,056	)
Net Income (Loss)	$	1,419,945		$	(35,713	)	$	(754,344	)	$	629,888
Supplemental Disclosures
Total Assets	$	36,685,343		$	13,298,356		$	3,029,244		$	53,012,943
Total Liabilities	$	1,963,391		$	429,635		$	470,239		$	2,863,265
Revenues from Intercompany Sales – eliminated from sales above	$	948,934		$	10,790		$	312,000		$	1,271,724
Depreciation and Amortization	$	153,019		$	25,357		$	12,162		$	190,538
Purchases of Long-lived Assets	$	132,423		$	2,208		$	27,845		$	162,476

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2024 and October 31, 2023

NOTE 12 – SEGMENT ANALYSIS (Continued)

	Marine Technology Business (Products)			Marine Engineering Business (Services)			Overhead			Total
Three Months Ended January 31, 2023
Net Revenues	$	3,824,159		$	1,772,125		$	-		$	5,596,284
Cost of Revenues		1,064,244			779,035			-			1,843,279
Gross Profit		2,759,915			993,090			-			3,753,005
Research & Development		438,308			6,150			-			444,458
Selling, General & Administrative		661,759			646,310			654,382			1,962,451
Total Operating Expenses		1,100,067			652,460			654,382			2,406,909
Income (Loss) from Operations		1,659,848			340,630			(654,382	)		1,346,096
Other Income (Expense)
Other Income		2,904			-			-			2,904
Interest Income		12,116			745			-			12,861
Total Other Income (Expense)		15,020			745			-			15,765
Income (Loss) before Income Taxes		1,674,868			341,375			(654,382	)		1,361,861
Income Tax (Expense) Benefit
Current Tax (Expense) Benefit		(18,873	)		(19,856	)		38,718			(11	)
Deferred Tax (Expense) Benefit		-			-			36,007			36,007
Total Income Tax (Expense) Benefit		(18,873	)		(19,856	)		74,725			35,996
Net Income (Loss)	$	1,655,995		$	321,519		$	(579,657	)	$	1,397,857
Supplemental Disclosures
Total Assets	$	36,176,835		$	13,377,560		$	949,710		$	50,504,105
Total Liabilities	$	2,694,766		$	758,160		$	480,710		$	3,933,636
Revenues from Intercompany Sales – eliminated from sales above	$	829,674		$	45,707		$	680,000		$	1,555,381
Depreciation and Amortization	$	128,838		$	24,910		$	10,259		$	164,007
Purchases of Long-lived Assets	$	79,642		$	4,780		$	21,485		$	105,907

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

January 31, 2024 and October 31, 2023