Financial Performance - Net revenues for the three months ended April 30, 2025, were $7.02 million, a 31.9% increase compared to $5.32 million for the same period in 2024[11]. - Gross profit for the six months ended April 30, 2025, was $7.93 million, up 16.1% from $6.83 million in the same period of 2024[11]. - Net income for the three months ended April 30, 2025, was $908,762, a decrease of 36% from $1.42 million in the same period of 2024[11]. - Net income for the six months ended April 30, 2025, was $1,821,737, compared to $2,045,126 for the same period in 2024, reflecting a decrease of approximately 11%[16]. - For the six-month period ended April 30, 2025, combined net revenue was $12,227,174, a decrease of 1.1% compared to $12,362,291 for the same period in 2024[59]. - Total net revenues for the three months ended April 30, 2025, were $7,017,459, with the Marine Technology Business contributing $3,878,090[96]. - Gross profit for the three months ended April 30, 2025, was $4,497,281, reflecting a gross margin of approximately 64.1%[96]. - For the six months ended April 30, 2025, total net revenues reached $12,227,174, representing a significant increase compared to $9,784,369 for the same period in 2024, indicating a growth of approximately 25%[109]. Assets and Equity - Total assets increased to $60.59 million as of April 30, 2025, up from $57.54 million as of October 31, 2024, representing a growth of 3.57%[7]. - Total stockholders' equity rose to $55.89 million as of April 30, 2025, compared to $53.13 million as of October 31, 2024, indicating an increase of 5.2%[10]. - Cash and cash equivalents increased to $24.46 million as of April 30, 2025, from $22.48 million as of October 31, 2024, marking an 8.8% increase[7]. - The company’s total fixed assets, net, as of April 30, 2025, were $7,204,814, a slight decrease from $7,236,161 as of October 31, 2024[48]. - Total cash and cash equivalents at the end of the period on April 30, 2025, was $24,462,301, up from $23,709,676 at the end of April 2024[16]. Expenses - Research and development expenses increased to $1.23 million for the six months ended April 30, 2025, compared to $1.03 million in 2024, reflecting a rise of 19.8%[11]. - Total operating expenses for the three months ended April 30, 2025, were $3,409,597, a 43% increase from $2,388,051 in 2024[12]. - Commission costs for the three-month period ended April 30, 2025, were $390,384, compared to $132,222 for the same period in 2024, reflecting a significant increase of 195%[41]. - The company reported total operating expenses of $3,409,597 for the three months ended April 30, 2025[96]. Acquisition and Growth - The company acquired Precision Acoustics Limited (PAL) for $6,538,569 in cash, with a net cash outlay of $4,605,285 after accounting for PAL's cash balance[57]. - In the current quarter, PAL contributed revenues of $1,299,069 and earnings before tax of $173,871 to the consolidated results[59]. - The acquisition of PAL includes contingent consideration arrangements with revenue targets of $5,334,584 for FY 2025 and $5,867,914 for FY 2026[62]. - The company acquired the Acoustics Sensors and Material Business on October 29, 2024, which is expected to enhance its product offerings and market reach[105]. Cash Flow - Cash provided by operating activities for the six months ended April 30, 2025, was $2,103,980, a significant improvement compared to cash used in operating activities of $(1,253,725) in 2024[16]. - The company reported a net cash increase of $1,983,229 for the six months ended April 30, 2025, compared to a decrease of $(739,165) in the same period of 2024[16]. Revenue Recognition - Revenue from the Marine Technology Business is recognized upon delivery and passing of risks, with contracts often requiring advance customer payments[24][25]. - The Engineering Business recognizes revenue based on the percentage of completion method, measured by costs incurred to date relative to estimated total costs[34]. Other Financial Metrics - The company’s effective tax rate for the three months ended April 30, 2025, was 28.2%, up from 17.2% in the same period of 2024[113]. - The company recognized a foreign currency translation adjustment of $87,375 for the six months ended April 30, 2025[16]. - The company reported total other income for the six months ended April 30, 2025, was $450,764, a decrease of 13.0% from $518,392 for the same period in 2024[50].
a Octopus (CODA) - 2025 Q2 - Quarterly Report