Group 1 - Coda Octopus (NASDAQ: CODA) is a producer of marine technology products and services, indicating a focus on a niche market with potential for growth [2] - The company has shown strong performance, attracting interest from investors looking for small, high-growth potential stocks [2] - The investment strategy involves a buy and hold approach with tranche purchases, suggesting a methodical investment style aimed at long-term gains [2] Group 2 - The service provided by Shareholders Unite includes a portfolio and watchlist of small companies with high growth possibilities, emphasizing a diversified investment approach [2] - The analyst has a beneficial long position in CODA shares, indicating confidence in the company's future performance [3] - The article expresses personal opinions of the analyst, highlighting an independent analysis of the stock without external compensation [3]

Financial Data and Key Metrics Changes - Revenue in Q3 2024 increased by 12% to $5.5 million compared to $4.9 million in Q3 2023 [12][5] - Gross profit rose to $4 million, with a consolidated gross margin of 73.9%, up from 68.8% in Q3 2023 [14] - Operating income increased by 61.2% to $1.4 million, with an operating margin of 25.4% compared to 17.6% in Q3 2023 [16] - Net income after taxes was $1.3 million or $0.11 per diluted share, compared to $1 million or $0.09 per diluted share in Q3 2023 [16] Business Line Data and Key Metrics Changes - Marine Technology Business revenue increased by 6.5% to $3.1 million from $2.9 million in Q3 2023 [12] - Marine Engineering Business revenue saw a significant increase of 19.8% to $2.4 million from $2 million in Q3 2023 [12][6] - Gross margin for Marine Technology Business improved to 82.9% from 82.1% in Q3 2023, while Marine Engineering Business gross margin increased to 62.6% from 50% [14][16] Market Data and Key Metrics Changes - Sales to North America decreased significantly, attributed to the US Presidential election cycle, with a reported decline of approximately 35.9% year-over-year [22][13] - Despite the decline in North American sales, there was strong revenue growth outside the US, indicating resilience in the commercial marine market [22] Company Strategy and Development Direction - The company aims to embed its technologies into defense programs to secure recurring sales, focusing on long-term shareholder value [18] - The strategy includes advancing the DAVD program for adoption by special forces and returning the Engineering Business to pre-COVID revenue levels [19] - The company is actively pursuing an acquisition to enhance capabilities, with a target identified and due diligence underway [17][31] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in order placements for US Defense Programs due to funding gaps related to the election cycle, but expressed confidence in overall results [5] - The company is optimistic about the future, citing increased utilization of rental assets and ongoing interest in its technologies from various defense sectors [18][19] - Management highlighted the importance of the commercial marine market as a buffer against defense market fluctuations [22] Other Important Information - The company has $25.2 million in cash and cash equivalents with no debt, reflecting a solid financial position [16] - Marketing expenses increased by approximately 180% as part of a strategy to shift focus from R&D to business development [15] Q&A Session Summary Question: Near-term pressure on business segments due to election cycle - Management acknowledged a 35.9% decline in sales from the Americas, attributing it to the election cycle, but noted resilience in commercial marine revenue [21][22] Question: Update on DAVD adoption and commercial opportunities - Management reported ongoing discussions with commercial offshore providers and excitement about the DAVD technology, despite slower adoption than desired [25][26] Question: Progress on Thermite program and election impact - Management confirmed ongoing pre-production orders for the Thermite program, with no expected impact from the election [27] Question: Market opportunity for ship hull scanning - Management described the ship hull scanning market as a "white space" with significant global potential, emphasizing ongoing trials and stakeholder interest [28][29] Question: Details on acquisition target - Management indicated the acquisition would be all cash, aimed at expanding group capabilities rather than segment expansion [33][31] Question: Update on digital audio product - Management expects purchase orders for the digital audio product in September, following successful safety assessments [35] Question: Sales exposure to China - Management confirmed ongoing sales to China, primarily in offshore renewables, but noted increasing challenges due to geopolitical factors [38][39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number 001-38154 CODA OCTOPUS GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 34-2 ...

Core Insights - Coda Octopus Group, Inc. has received a significant order valued at $906k for its Defense Engineering Services Business, Coda Octopus Colmek, which had been anticipated and delayed during the first half of fiscal 2024 [1][7] - The company aims to restore its Engineering Business to a pre-COVID revenue profile of $10 million, with this order being a step in that direction [7] Company Overview - Coda Octopus Group, Inc. specializes in 4D/5D/6D imaging sonar technology and diving communications technology, providing real-time subsea intelligence [1][8] - The company offers a range of hardware and software solutions, including the Echoscope® and Echoscope PIPE® sonar systems, which are used for underwater imaging in various applications [8] New Technology - The newly launched Diver Augmented Vision Display (DAVD) system is a fully integrated solution that enhances global diving operations by allowing topside control and diver HUD systems to share critical information [3] - The DAVD system integrates sonar technology, enabling dive operations in zero visibility conditions, which is a common challenge in the industry [3] Defense Engineering Business - Coda Octopus operates two defense engineering businesses, Coda Octopus Martech Ltd (UK) and Coda Octopus Colmek, Inc. (US), which supply sub-assemblies for mission-critical programs as subcontractors to prime defense contractors [9] - These businesses engage in concept, design, prototype, manufacturing, and post-sale support, allowing for repeat orders throughout the life of these programs [9]

Coda Octopus Group, Inc. (NASDAQ:CODA) Q2 2024 Earnings Conference Call June 12, 2024 10:00 AM ET Company Participants Geoff Turner - IR Annmarie Gayle - Chair and Chief Executive Officer Gayle Jardine - Interim-CFO Conference Call Participants Brian Kinstlinger - Alliance Global Partners William Bremer - Vanquish Capital Partners Operator Good morning. Welcome to Coda Octopus' Group Second Quarter 2024 Earnings Call. My name is Sheri and I will be your operator today. Before this call, Coda Octopus issued ...

Revenue Performance - Net revenues for the three months ended April 30, 2024, were $5,323,178, a slight increase from $5,301,509 in the same period of 2023, representing a growth of 0.4%[24] - Net revenues for the three months ended April 30, 2024, were $5,323,178, compared to $3,524,714 for the same period in 2023, indicating a year-over-year increase of 51.1%[79] - Total net revenues for the three months ended April 30, 2024, were $5,301,509, compared to $5,301,509 for the same period in 2023[92] - Total net revenues for the six months ended April 30, 2024, were $9,784,369, with the Technology Business contributing $7,067,480 and the Engineering Business contributing $2,716,889[94] Profitability - Gross profit for the six months ended April 30, 2024, was $6,825,170, down 7.5% from $7,376,246 in the same period of 2023[24] - Income from operations for the three months ended April 30, 2024, was $1,350,383, an increase of 58% compared to $855,108 in the same period of 2023[24] - Net income for the three months ended April 30, 2024, was $1,415,238, up from $1,008,477 in the same period last year, reflecting a growth of 40.3%[72] - Net income for the six months ended April 30, 2024, was $2,045,126, a decrease of 15% from $2,406,334 in the same period of 2023[24] Expenses - Operating expenses for the three months ended April 30, 2024, decreased to $2,388,051 from $2,768,133 in the same period of 2023, a reduction of 13.8%[24] - Research and development expenses for the six months ended April 30, 2024, increased to $1,028,458 from $970,397 in the same period of 2023, an increase of 6%[24] - Research and Development expenses were $542,481 for the three months ended April 30, 2024, compared to $485,061 in the same period last year, showing an increase of 11.8%[79] - Total operating expenses for the same period were $4,919,403, with Selling, General & Administrative expenses accounting for $3,890,945[94] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $23,709,676 as of April 30, 2024, compared to $23,455,118 at the end of the same period in 2023, showing a slight increase of approximately 1.1%[49] - Total assets as of April 30, 2024, were $53,997,156, compared to $37,040,637 as of October 31, 2023[79] - Total liabilities as of April 30, 2024, were $2,930,786, an increase from $1,807,318 as of October 31, 2023[79] - The company reported a net cash used in operating activities of $(1,253,725) for the six months ended April 30, 2024, compared to $(261,033) in 2023, indicating a significant increase in cash outflow[49] Other Income and Adjustments - Total other income for the three months ended April 30, 2024, was $290,832, compared to $173,376 for the same period in 2023, representing a significant increase of 67.5%[24] - The company reported a foreign currency translation adjustment loss of $437,683 for the three months ended April 30, 2024, compared to a gain of $538,373 in the same period last year[24] - The company recognized amortization of intangible assets of $33,869 for the six months ended April 30, 2024, compared to $15,442 in 2023, reflecting a significant increase of 119.5%[49] Taxation - The effective tax rate for the six months ended April 30, 2024, was 15.6%, compared to (0.7)% for the same period in 2023[101] - The company provisioned $130,500 for Global Intangible Low-Taxed Income (GILTI) in the current quarter and $173,000 for GILTI for the six-month period[101] - The company did not generate any taxable income in the current quarter, leading to a decrease in the statutory income tax rate from 25.0% to an effective rate of 13.8%[101] Inventory and Deferred Revenue - Total inventory increased to $12,645,976 as of April 30, 2024, up from $11,685,525 as of October 31, 2023, representing a growth of 8.23%[64] - Deferred revenue as of April 30, 2024, was $823,531, down from $1,108,919 as of October 31, 2023, indicating a decrease in billings in excess of costs[92] - Deferred revenue related to warranty and TLS was $366,773 as of April 30, 2024, down from $457,600 as of October 31, 2023, a decrease of 20%[68]

Core Viewpoint - Coda Octopus Group, Inc. will host a conference call on June 12, 2024, to discuss its fiscal second quarter results for the period ending April 30, 2024, with a press release to be issued prior to the market opening on the same day [1]. Company Overview - Coda Octopus Group, Inc. is a leader in real-time 3D/4D/5D and 6D imaging sonar technology, providing solutions for subsea intelligence and diving technology [1][4]. - The company offers proprietary sonar products such as Echoscope® and Echoscope PIPE®, which are utilized for underwater imaging in various applications including mapping, salvage, search and rescue, and marine construction [4]. - The recently launched Diver Augmented Vision Display (DAVD) system enhances diving operations by integrating sonar technology, allowing for operations in zero visibility conditions [5]. Defense Engineering Segment - Coda Octopus Group includes two defense engineering businesses: Coda Octopus Martech Ltd in the UK and Coda Octopus Colmek, Inc. in the US, which supply sub-assemblies for mission-critical programs as subcontractors [6]. - These businesses focus on concept, design, prototype, manufacturing, and post-sale support, enabling opportunities for repeat orders throughout the life of these programs [6].

Core Viewpoint - The AI hype has plateaued, but AI stocks remain popular, with caution advised against chasing potential upside in overhyped companies [1] Group 1: AI Market Overview - The AI revolution encompasses various industries beyond generative chatbots, with many companies utilizing AI technology [2] - Some AI stocks are undervalued and could provide significant returns if they gain traction [2] Group 2: Gorilla Technology (GRRR) - Gorilla Technology, a video intelligence and IoT company, reported revenues of $64.7 million, a 188.7% year-over-year increase [4] - The stock has been trading sideways, with a peak of $11.2 this year, but offers a safe entry point around $5 due to its historical floor [5] - Adjusted EBITDA reached $29 million, up 587%, indicating strong profit potential [5] - Projected revenues for 2024 are $79 million, supported by a solid sales pipeline, although cash reserves are at $34 million [6] Group 3: Coda Octopus (CODA) - Coda Octopus specializes in 3D sonar solutions and AI-driven seabed classification [8] - Revenue fell 20% year-over-year due to funding delays and supply chain issues, but the marine technology segment shows signs of recovery [9] - Profit margins are improving, and management is optimistic about demand for offshore renewable energy projects [10] - The stock has experienced volatility but may benefit from a cash build-up as the company expands [11] Group 4: Viant Technology (DSP) - Viant Technology is an AI-powered advertising company with a 28% year-over-year revenue increase, driven by a 50% rise in connected TV advertising [14] - The company utilizes patented Household ID technology for targeted advertising, enhancing ad performance across platforms [15] - Early success in streaming audio advertising contributes to growth, accounting for 10% of first-quarter revenue [16] - The stock is undervalued at 0.6 times forward sales, with significant potential for margin expansion and projected EPS growth from 40 cents to 62 cents over three years [16]

ORLANDO, FL, April 29, 2024 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. ("CODA" or the "Company") (NASDAQ:CODA), a global market leader in 3D/4D/5D/6D imaging sonar technology for real time subsea intelligence and cutting-edge diving technology, today reported that following successful field testing with its Navy customers, it has now launched a new Artificial Intelligence (AI)-based digital communication audio system, known as the Voice HUB-4. Voice HUB-4 is a state-of-the-art system that greatly advances ...

ORLANDO, FL, April 23, 2024 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. ("CODA" or the "Company") (NASDAQ:CODA), a global market leader in 3D/4D/5D/6D imaging sonar technology for real time subsea intelligence and cutting-edge diving technology, today reported that a major offshore service provider recently purchased a number of Echoscope PIPE® sonars having a contract value of $1,000,000. Commenting on this, Blair Cunningham, CODA's President of Technology, stated "we are excited that this global offshore ...