Business Segments - Coda Octopus Group operates two segments: Marine Technology Business and Marine Engineering Business, with a focus on underwater technology solutions[13]. - The Marine Technology Business includes proprietary technologies such as Echoscope and Diver Augmented Vision Display (DAVD), which are used in various underwater applications[14][15]. - The Services Segment has been supporting significant defense programs for over 40 years, with 20% to 30% of consolidated revenues derived from a small number of prime defense contractors[20]. - The Marine Engineering Businesses, including Coda Octopus Colmek and Coda Octopus Martech, operate as subcontractors to prime defense contractors, focusing on high reliability and quality in defense programs[76][77]. Technology and Innovation - The Echoscope technology is recognized as the only acoustic imaging sonar capable of providing real-time 4D imaging of moving objects in zero visibility conditions[28]. - The DAVD tethered version is now operational across nine naval commands within the US Navy, marking its transition from R&D to operational status[32]. - The new generation of DAVD HUD technology features a 200% increase in resolution and an expanded field of view, enhancing compatibility with specialized dive equipment[35]. - The Echoscope PIPE technology generates real-time 3D, 4D, 5D, and 6D images, significantly enhancing underwater monitoring capabilities[55][57]. - The DAVD system enhances diver safety and operational efficiency by providing real-time data and high-quality communication, addressing challenges in low visibility environments[70]. - Coda Octopus aims to leverage its R&D to enhance product offerings and expand market share in underwater imaging and acoustic technologies[96]. - Coda Octopus has advanced its sonar technology and filed several significant patent applications, including innovations related to 5D and 6D technologies[110]. - The company has been awarded a significant patent for predicting and adjusting cable laying using sonar imaging, which is crucial for the Offshore Renewables Market[110]. Acquisitions and Market Expansion - The company acquired Precision Acoustics Limited on October 29, 2024, to enhance its capabilities in ultrasound and acoustic measurement, particularly for advancing Echoscope technology[23]. - Coda Octopus acquired Precision Acoustics Limited (PAL) on October 29, 2024, enhancing its capabilities in ultrasound and acoustic measurement, particularly in medical imaging and Non-Destructive Testing (NDT)[74]. - Coda Octopus Products Limited established subsidiaries in Australia, New Zealand, Denmark, and India to expand market presence and recruit resources for software development[44][45]. - The acquisition of PAL on October 29, 2024, is expected to increase R&D expenditures as the company aims to leverage PAL's expertise for new product development[115]. Financial Performance - Consolidated revenue for FY 2024 was 19,352,088 in FY 2023[194]. - Marine Technology Business generated 12,119,066 in FY 2023[197]. - Services Business revenue increased by 3.8% to 2,328,781, offsetting a 14.6% decline in outright product sales[199]. - Total operating expenses for the consolidated entity rose by 2.9% to 7,287,561 in FY 2024, down from 2,838,857 in FY 2024 from $4,263,883 in FY 2023 due to reduced funding under Defense Programs[205]. Challenges and Risks - The ongoing war in Ukraine has redirected defense spending towards land-based applications, reducing opportunities for the Services Business[169]. - The geopolitical landscape, particularly trade restrictions with China, is expected to significantly impact revenues and growth strategy[168]. - The company is facing significant increases in raw material costs and operational expenses due to inflation and skill shortages[172][173]. - The company anticipates continued impacts on business until a new Federal Budget is approved, affecting Q1 2025 financial results[195]. - The company does not expect to pay cash dividends in the foreseeable future, focusing on retaining earnings for business expansion[144]. Certifications and Compliance - The company holds ISO 9001:2015 and Cyber Essentials Plus certifications, ensuring compliance with quality and cybersecurity standards[73]. - Coda Octopus has established a Cyber Security Management Committee to oversee cybersecurity risk management and compliance with certifications[130]. - The company has a competitive Patent Reward Scheme to incentivize employees to contribute to its patent portfolio[111]. Employee and Operational Insights - Coda Octopus employs approximately 103 employees, with a majority having backgrounds in science, technology, and engineering[122]. - Coda Octopus operates from multiple locations, including a 16,000 square foot facility in Salt Lake City, Utah, which includes manufacturing and R&D[132].
a Octopus (CODA) - 2024 Q4 - Annual Report