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Coda Octopus Group Inc. (CODA-3.71%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing an increase in consolidated revenue to $5,209,715 from $4,461,191 in the same quarter the previous year. This increase is attributed to the acquisition of Precision Acoustics Limited (PAL), which contributed 25.2% to the consolidated revenue.
The company reported a gross profit of $3,428,470 for the quarter, compared to $3,086,736 in the previous year, with the margin percentage decreasing to 65.8% from 69.2%. This decrease is due to a higher contribution from the Services Business and PAL, which generally yield lower margins than the Marine Technology Business.
Research and development expenses increased to $543,126 from $485,977, primarily due to the inclusion of PAL's R&D activities.
Selling, general, and administrative expenses increased to $2,223,322 from $2,045,375, with the increase largely due to the inclusion of PAL's expenses.
Net income for the quarter was $912,975, up from $629,888 in the previous year. The increase is attributed to the addition of PAL and an increase in interest income.
Cash provided by operating activities was $641,511, while cash used in investing and financing activities was $135,145 and $0, respectively.
Coda Octopus Group had a working capital of $39,382,917 as of January 31, 2025. The company believes it has sufficient working capital to meet its anticipated cash needs for the next twelve months.
The filing also details the acquisition of PAL, which was completed on October 29, 2024, for $6,538,569 in cash. PAL contributed revenues of $1,312,261 and earnings of $556,049 to the consolidated results.
The company identified no material weaknesses in its internal controls over financial reporting during the quarter.
Coda Octopus Group continues to focus on its Marine Technology Business and the integration of PAL to enhance its product offerings and market reach.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Coda Octopus Group Inc. quarterly 10-Q report dated March 17, 2025. To report an error, please email earnings@qz.com.