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 ...

ORLANDO, FL, April 15, 2024 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. ("CODA" or the "Company") (NASDAQ:CODA), a global market leader in real-time 3D/4D/5D and 6D imaging sonar technology for real-time subsea intelligence and real time information platform diving technology, announced the appointment of Gwenael Rouy Poirier to fill a vacancy created by the recent decision of the Board to expand the number of seats on the Company's Board. Gwenael is an experienced business leader with over 27 years' exper ...