Coda Octopus Group, Inc. reported its financial results for the three and nine months ended July 31, 2024, showing a mixed performance compared to the previous fiscal period. For the three months, net revenues increased to $5,476,544, up 12.0% from $4,890,532 in the same period last year. The nine-month revenue, however, decreased by 3.3% to $15,260,913 from $15,788,325. The Marine Technology Business contributed $3,048,544 to the quarterly revenue, while the Marine Engineering Business added $2,428,000.

Gross profit for the three months ended July 31, 2024, rose to $4,048,538, reflecting a gross profit margin of 73.9%, compared to 68.8% in the prior year. The gross profit margin for the Marine Technology Business improved to 82.9%, while the Services Business saw a significant increase to 62.6%. Operating income for the quarter surged by 61.2% to $1,390,774, and income before taxes rose 51.4% to $1,631,246. Net income for the quarter was $1,274,658, a 22.7% increase from $1,038,780 in the previous year.

For the nine-month period, net income decreased to $3,319,784 from $3,445,114, attributed to increased tax liabilities. The total tax expense for the nine months was $735,621, a significant rise from $22,397 in the previous year. The effective tax rate was higher than the U.S. statutory rate, influenced by various international tax rates and credits.

Total assets as of July 31, 2024, increased to $55,945,114 from $51,841,516, while total liabilities decreased to $3,140,077 from $3,412,750. Stockholders’ equity rose to $52,805,037, up from $48,428,766. Cash and cash equivalents at the end of the period were $25,217,965, reflecting a net increase of $769,124 for the nine months.

Strategically, Coda Octopus continues to focus on its Marine Technology and Engineering businesses, leveraging synergies in customer bases and engineering capabilities. The company has been awarded contracts from the U.S. Navy and other defense contractors, enhancing its position in the defense sector. However, challenges such as inflation, geopolitical tensions, and skill shortages have impacted operational costs and demand for underwater solutions. The company remains optimistic about its working capital and operational capabilities moving forward.