Coda Octopus Group, INC. World Leader in Sound Underwater Technology Forward-Looking Statements Corporate Presentation March 17, 2026 1 This presentation contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include, without limitation, statements regarding the Company's expectations for the growth of the Company's ...

Company Overview - Coda Octopus Group, Inc. is a global leader in real-time 3D/4D/5D and 6D imaging sonar technology for subsea intelligence and augmented reality diving technology [4] - The company was founded in 1994 and provides a range of hardware and software solutions, including proprietary imaging sonars marketed under the names Echoscope, Echoscope PIPE, and Echoscope PIPE NANO Gen Series [4] - Coda Octopus also operates two Defense Engineering Services businesses, supplying sub-assemblies to prime defense contractors [6] Upcoming Conference Call - The company will host a conference call on March 17, 2026, at 10:00 a.m. Eastern time to discuss its Fiscal First Quarter 2026 results [1] - A press release detailing these results will be issued before the market opens on the same day [1] Diving Technology - The newly launched Diver Augmented Vision Display (DAVD) technology is expected to transform global diving operations by integrating topside control with a diver's heads-up display [5] - DAVD allows for shared critical information and visualization of the same underwater scene, enhancing operations in zero visibility conditions [5] Recent Acquisition - Coda Octopus recently acquired Precision Acoustics Limited, which specializes in acoustic sensors and materials, and is accredited to ISO/IEC 17025 standard [7][8] - This acquisition enhances the company's capabilities in precision ultrasonic measurement, critical for regulated applications in medical and defense sectors [8]

Core Viewpoint - Kraken Robotics Inc. has announced an agreement to acquire Covelya Group Limited for a total consideration of $615 million, which includes $480 million in cash and $135 million in common shares, aimed at enhancing its position in the subsea technology market [1][2]. Acquisition Rationale - The acquisition positions Kraken as a major supplier of dual-use subsea technology, with a combined revenue of $365 million in 2025 and an Adjusted EBITDA margin of 24% [5]. - Covelya Group is expected to report revenue between $249 million and $275 million in 2025, with a revenue CAGR of 24% since 2023, indicating strong growth potential [4][14]. - The acquisition allows for deeper customer relationships in the defense and maritime surveillance market, expanding Kraken's total addressable market [5][8]. - It enhances Kraken's product offerings and geographic expansion, improving business diversification and technical capabilities [5][11][12]. Financial Metrics - The acquisition is expected to generate low-to-mid double-digit EPS accretion in 2027, along with positive impacts on revenue, EBITDA, and cash flow per share [13]. - Kraken's preliminary revenue for fiscal 2025 is projected to be between $102 million and $104 million, with an Adjusted EBITDA of $24 million to $26 million, marking the highest results in the company's history [17]. - For 2026, Kraken anticipates revenue between $165 million and $175 million, excluding contributions from the acquisition [18]. Management Comments - The management of Kraken expressed enthusiasm about the acquisition, highlighting the strategic benefits of combining two leading subsea technology providers and the potential for cross-selling opportunities [6][7]. - Covelya's management also noted the advantages of leveraging Kraken's experience in the defense sector to enhance their product offerings [6]. Acquisition Financing and Details - The acquisition will be financed through a combination of a $150 million secured term credit facility and a public offering of subscription receipts expected to generate approximately $350 million [22][26]. - The completion of the acquisition is anticipated in the second quarter of 2026, subject to regulatory approvals [19][24].

Core Insights - Coda Octopus Group, Inc. reported strong financial results for FY2025, with significant increases in consolidated net revenue, operating income, pre-tax income, and earnings per share [2][8]. Financial Performance - Total revenue for FY2025 was approximately $26.6 million, a 30.7% increase from $20.3 million in FY2024 [8]. - Revenue from the Marine Technology Business was $13.2 million, up 3.2% from $12.8 million in FY2024 [8]. - Revenue from the Defense Engineering Services Business increased by 5.6% to $7.9 million compared to $7.5 million in FY2024 [8]. - Gross profit rose to $17.7 million, with a gross margin of 66.5%, down from 69.8% in FY2024 [12]. - Operating income increased by 26.6% to $4.5 million, with an operating margin of 17.1% [12]. - Pre-tax income was approximately $5.5 million, a 19.5% increase from $4.6 million in FY2024 [12]. - Net income after taxes was $4.1 million, reflecting a 13.3% increase from $3.6 million in FY2024 [12]. - Diluted earnings per share increased to $0.37 from $0.32 in FY2024 [12]. Business Developments - The acquisition of Precision Acoustics Limited (PAL) contributed positively to financial performance, achieving qualifying conditions for earn-out payments [2][3]. - Sales related to DAVD technology reached approximately $3.7 million, up from $1.2 million in the previous fiscal year [3]. - Equipment sales for Echoscope increased by 30.5% to $9.4 million compared to $7.2 million in FY2024 [3]. - The company completed the "Joint Funded DUS Hardening Program," delivering 16 next-generation DUS Systems for the U.S. Navy [5]. - The new generation of untethered DAVD systems is undergoing the Authorization for Navy Use (ANU) approval process, which is crucial for broader adoption [5][13]. Strategic Focus - The company is focused on increasing its share in the Defense Underwater Vehicles sector, which is transitioning towards AI-enabled autonomous capabilities [11]. - The introduction of the NANO Gen Series imaging sonar is aimed at enhancing the company's position in the underwater imaging sonar market [11][14]. - The company is expanding its growth strategy to include M&A activities, targeting value-accretive opportunities [15]. Cash Position - The cash balance at the end of FY2025 was $28.7 million, an increase of $6.2 million from $22.5 million in FY2024 [9]. Research and Development - Research and Development expenditures for FY2025 were approximately $2.4 million, a 9.2% increase compared to $2.2 million in FY2024 [12]. Summary of Achievements - The company successfully launched the ultra-compact Echoscope PIPE NANO Gen Series imaging sonar, which is well-received in the market [13]. - The company is seeing traction for DAVD technology outside the U.S., with sales to a European Navy [13].

Core Insights - DIVEVOLK's SeaLink Underwater Smartphone Data Transmitter has won the Innovation award at the boot dive award 2026, recognizing its contribution to underwater connectivity and technology [1][10] Group 1: Product Innovation - SeaLink enables real-time connectivity underwater, allowing divers to engage in live streaming, video calls, and collaboration between underwater and surface teams, which was previously limited to high-cost setups [5][9] - The product builds on DIVEVOLK's earlier innovation of a touchscreen underwater smartphone housing, emphasizing the company's commitment to enhancing underwater technology [10][12] Group 2: Industry Recognition - The boot dive award, launched in 2023, honors significant contributions to the diving industry across various categories, including Innovation, and is supported by BAUER Kompressoren [7] - DIVEVOLK's recognition at the boot Düsseldorf highlights its role in making underwater technology more accessible and community-driven [10][12]

Core Viewpoint - Coda Octopus Group, Inc. will host a conference call on January 29, 2026, to discuss its fiscal year 2025 results, with a press release to be issued prior to market opening on the same day [1] Group 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 augmented reality diving technology [1][4] - The company was founded in 1994 and supplies hardware and software solutions to the underwater/subsea market, including proprietary sonar technologies marketed under names like Echoscope [4] - Echoscope technology is utilized globally for various applications, including underwater mapping, subsea intervention, and marine construction [4] Group 2: New Technologies - The newly launched Diver Augmented Vision Display (DAVD) technology aims to revolutionize diving operations by integrating topside control with diver HUD systems, enabling shared visualization of underwater scenes [5] - DAVD technology allows operations in zero visibility conditions, addressing a common challenge in diving [5] Group 3: Defense Engineering Services - Coda Octopus Group operates two Defense Engineering Services businesses, Coda Octopus Martech Ltd and Coda Octopus Engineering, which supply sub-assemblies to prime defense contractors [6] - These businesses provide services including concept design, prototype manufacturing, and post-sale support, allowing for repeat orders throughout the life of defense programs [6] Group 4: Recent Acquisition - The company recently acquired Precision Acoustics Limited, which specializes in acoustic sensors and materials, and is accredited to ISO/IEC 17025 standard [7][8] - This acquisition enhances the company's capabilities in precision ultrasonic measurement, critical for regulated applications in medical and defense sectors [8]

Core Insights - DIVEVOLK's SeaLink Underwater Smartphone Data Transmitter has been shortlisted for the 2026 Boot Dive Award in the Innovation category, showcasing the company's advancements in underwater technology [1][4] - The SeaLink device addresses signal transmission challenges between underwater devices and smartphones, enabling communication at depths of up to 30 meters, facilitating live streaming, video calls, and real-time data transfer [3][5] Technological Advancements - SeaLink is utilized for various applications including underwater communication, live streaming, rescue operations, dive training, and real-time support for engineering and maintenance tasks [4] - The device offers high-speed underwater data transfer without compromising the integrity of the housing, enhancing operational safety by turning smartphones into real-time monitoring tools for divers [5] Industry Recognition and Voting - The Boot Dive Award has entered a public voting phase, allowing the global diving community to participate in recognizing innovations, with DIVEVOLK nominated in the Innovation category and its partner Aquatil in the Climate category [4][8] - Voting is open on the official boot Düsseldorf website, encouraging support for both DIVEVOLK and Aquatil [8] Company Overview - DIVEVOLK is a leader in underwater smartphone technology, developing tools that enhance safety, communication, and creative expression underwater, particularly with its SeaTouch 4 Max series [10]

Core Insights - DIVEVOLK's SeaLink Underwater Smartphone Data Transmitter has been shortlisted for the 2026 Boot Dive Award in the Innovation category, showcasing the company's advancements in underwater technology [1][4] Group 1: Product Innovation - The SeaLink is designed to address signal transmission challenges between underwater devices and smartphones, enabling communication at depths of up to 30 meters [3] - It utilizes a floating central processor to receive mobile network signals and transmit them to a smartphone in a waterproof case, allowing for live streaming, video calls, and real-time data transfer [3][5] - Key technological advancements include wireless integration efficiency, enhanced operational safety, and industry versatility, making it suitable for various diving activities [5] Group 2: Industry Impact - The SeaLink supports underwater video calls, social media access, live streaming, and real-time communication for underwater engineering and maintenance [5] - It is also beneficial for underwater rescue operations and diving instruction, enhancing safety and communication for divers [5] - DIVEVOLK's commitment to innovation is further highlighted by its previous win of the 2024 Innovation Award at boot Düsseldorf [1][4] Group 3: Community Engagement - The boot Dive Award has entered a public voting phase, allowing the global diving community to participate in recognizing innovations that will shape the industry [6] - DIVEVOLK encourages support for both its innovation and the environmental initiatives of its strategic partner, Aquatil, which is nominated in the Climate category [6][8] - Voting can be done through the official boot Düsseldorf website, promoting engagement in technological innovation and environmental conservation [9]

Core Insights - DIVEVOLK has formed a strategic partnership with the 2025 Underwater Photo Awards (UWPA) to promote underwater smartphone photography [1][12] - The partnership includes sponsorship of the "Mobile Photography" category with a prize pool exceeding $2,000, aimed at encouraging new creators [3][12] Company Initiatives - DIVEVOLK is providing prizes for the top three images in the "Mobile Photography" category, including the Advanced Macro Kit valued at $1,115, the Ocean Kit valued at $507, and the SeaTouch 4 Max Platinum Housing valued at $499 [3][4] - Additionally, DIVEVOLK sponsors the "Art" category, offering the DIVEVOLK SL20 Underwater Dive Light valued at $139 for the winner [5] Competition Details - The 2025 UWPA opened for submissions on December 14, 2025, with a free participation model allowing each author to upload up to 10 images until January 11, 2026 [9] - Winners will be announced on February 21, 2026, during the Moscow Dive Show, which is the largest underwater exhibition in the region [10] Ethical Standards - The UWPA emphasizes fairness and transparency, governed by a jury of experienced underwater photographers, and has established strict ethical guidelines prohibiting AI-generated images and requiring original RAW files from finalists [7][8] Technological Advancements - DIVEVOLK is recognized for its innovations in underwater smartphone technology, including the SeaTouch series, which allows smartphone operation at depths of up to 60 meters [14] - The company aims to make high-quality imaging accessible to all, leveraging its patented full-touchscreen housing technology [12][13]

Core Insights - Kraken Robotics' stock has surged over 1000% since 2023, driven by increasing demand for its deep-sea technology across defense and exploration sectors, indicating that the rally may continue [2][4] - The company operates in a market where 80% of the world's oceans remain unexplored, with potential resource values estimated between $40 trillion to hundreds of trillions, highlighting the vast opportunities for undersea technologies [3] - The company is well-positioned to benefit from rising defense spending and undersea exploration trends, with significant orders expected to accelerate in 2025 [4][6] Company Overview - Kraken Robotics specializes in undersea detection technologies, including sonar and mapping, as well as robotics-as-a-service (RaaS), which focuses on data capture and inspection for various sectors [3] - The recent acquisition of 3D at Depth enhances Kraken's service offerings, providing inspection and 3D imaging services, thereby expanding revenue streams and cross-selling opportunities [6] Market Dynamics - The company has received numerous purchase orders from diverse clients, including S&P 500 companies and NATO members, with orders exceeding $12 million announced in December, supporting its growth trajectory [7] - The anticipated listing on NASDAQ is expected to create new business opportunities and increase investor interest, enhancing coverage and ownership [4]