Coda Octopus (CODA) 10-Q 14 Jun 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Apr. 30, 2023	Jun. 06, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Apr. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--10-31
Entity File Number	001-38154
Entity Registrant Name	CODA OCTOPUS GROUP, INC.
Entity Central Index Key	0001334325
Entity Tax Identification Number	34-2008348
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3300 S Hiawassee Rd
Entity Address, Address Line Two	Suite 104-105
Entity Address, City or Town	Orlando
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32835
City Area Code	(407)
Local Phone Number	735 2406
Title of 12(b) Security	Common Stock
Trading Symbol	CODA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	No
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,089,098

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Apr. 30, 2023	Oct. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 23,455,118	$ 22,927,371
Accounts Receivable, net	3,894,794	2,870,600
Inventory	11,233,685	10,027,111
Unbilled Receivables	1,099,066	602,115
Prepaid Expenses	738,167	240,464
Other Current Assets	422,371	343,061
Total Current Assets	40,843,201	37,010,722
FIXED ASSETS
Property and Equipment, net	6,070,666	5,832,532
OTHER ASSETS
Goodwill and Other Intangibles, net	3,851,229	3,824,394
Deferred Tax Asset	138,366	259,810
Total Other Assets	3,989,595	4,084,204
Total Assets	50,903,462	46,927,458
CURRENT LIABILITIES
Accounts Payable	776,185	793,247
Accrued Expenses and Other Current Liabilities	704,521	1,731,706
Deferred Revenue	1,023,757	943,569
Total Current Liabilities	2,504,463	3,468,522
LONG TERM LIABILITIES
Deferred Revenue, less current portion	88,258	76,127
Total Liabilities	2,592,721	3,544,649
STOCKHOLDERS’ EQUITY
Common Stock, $.001 par value; 150,000,000 shares authorized, 11,042,897 issued and outstanding as of April 30, 2023 and 10,916,853 shares issued and outstanding as of October 31, 2022	11,043	10,918
Treasury Stock	(31,175)	(28,337)
Additional Paid-in Capital	62,692,276	62,313,988
Accumulated Other Comprehensive Loss	(2,591,101)	(4,737,124)
Accumulated Deficit	(11,770,302)	(14,176,636)
Total Stockholders’ Equity	48,310,741	43,382,809
Total Liabilities and Stockholders’ Equity	$ 50,903,462	$ 46,927,458

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2023	Oct. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	11,042,897	10,916,853
Common stock, shares outstanding	11,042,897	10,916,853

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Income Statement [Abstract]
Net Revenues	$ 5,301,509	$ 4,984,838	$ 10,897,793	$ 10,823,046
Cost of Revenues	1,678,268	1,953,132	3,521,547	3,631,406
Gross Profit	3,623,241	3,031,706	7,376,246	7,191,640
OPERATING EXPENSES
Research & Development	525,939	517,378	970,397	1,190,268
Selling, General & Administrative	2,242,194	2,033,116	4,204,645	4,155,106
Total Operating Expenses	2,768,133	2,550,494	5,175,042	5,345,374
INCOME FROM OPERATIONS	855,108	481,212	2,201,204	1,846,266
OTHER INCOME (EXPENSE)
Other Income	173,376	14,497	189,141	94,491
Interest Expense		(2,502)		(2,902)
Total Other Income	173,376	11,995	189,141	91,589
INCOME BEFORE INCOME TAX EXPENSE	1,028,484	493,207	2,390,345	1,937,855
INCOME TAX (EXPENSE) BENEFIT
Current Tax Expense	(68,773)	109,150	(68,784)	(176,459)
Deferred Tax Benefit	48,766	8,946	84,773	67,155
Total Income Tax (Expense) Benefit	(20,007)	118,096	15,989	(109,304)
NET INCOME	$ 1,008,477	$ 611,303	$ 2,406,334	$ 1,828,551
NET INCOME PER SHARE:
Basic	$ 0.09	$ 0.06	$ 0.22	$ 0.17
Diluted	$ 0.09	$ 0.05	$ 0.21	$ 0.16
WEIGHTED AVERAGE SHARES:
Basic	11,010,077	10,857,673	10,970,806	10,857,429
Diluted	11,330,754	11,405,507	11,291,483	11,405,263
Foreign Currency Translation Adjustment	$ 538,373	$ (2,266,751)	$ 2,146,023	$ (2,025,601)
Total Other Comprehensive Income	538,373	(2,266,751)	2,146,023	(2,025,601)
COMPREHENSIVE INCOME	$ 1,546,850	$ (1,655,448)	$ 4,552,357	$ (197,050)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Beginning balance at Oct. 31, 2021	$ 10,858	$ 61,183,131	$ (1,667,059)	$ (18,477,857)		$ 41,049,073
Beginning balance, shares at Oct. 31, 2021	10,857,195
Employee stock-based compensation		325,175				325,175
Foreign currency translation adjustment			241,150			241,150
Net Income				1,217,248		1,217,248
Ending balance at Jan. 31, 2022	$ 10,858	61,508,306	(1,425,909)	(17,260,609)		42,832,646
Ending balance, shares at Jan. 31, 2022	10,857,195
Beginning balance at Oct. 31, 2021	$ 10,858	61,183,131	(1,667,059)	(18,477,857)		41,049,073
Beginning balance, shares at Oct. 31, 2021	10,857,195
Foreign currency translation adjustment						(2,025,601)
Net Income						1,828,551
Ending balance at Apr. 30, 2022	$ 10,859	61,873,873	(3,692,660)	(16,649,306)		41,542,766
Ending balance, shares at Apr. 30, 2022	10,858,302
Beginning balance at Jan. 31, 2022	$ 10,858	61,508,306	(1,425,909)	(17,260,609)		42,832,646
Beginning balance, shares at Jan. 31, 2022	10,857,195
Employee stock-based compensation		365,568				365,568
Foreign currency translation adjustment			(2,266,751)			(2,266,751)
Net Income				611,303		611,303
Stock issued for options exercised	$ 1	(1)
Stock issued from options exercised, shares	1,107
Ending balance at Apr. 30, 2022	$ 10,859	61,873,873	(3,692,660)	(16,649,306)		41,542,766
Ending balance, shares at Apr. 30, 2022	10,858,302
Beginning balance at Oct. 31, 2022	$ 10,918	62,313,988	(4,737,124)	(14,176,636)	(28,337)	43,382,809
Beginning balance, shares at Oct. 31, 2022	10,916,853
Employee stock-based compensation		182,153				182,153
Foreign currency translation adjustment			1,607,650			1,607,650
Net Income				1,397,857		1,397,857
Stock issued for options exercised	$ 25	(25)
Stock issued from options exercised, shares	25,500
Ending balance at Jan. 31, 2023	$ 10,943	62,496,116	(3,129,474)	(12,778,779)	(28,337)	46,570,469
Ending balance, shares at Jan. 31, 2023	10,942,353
Beginning balance at Oct. 31, 2022	$ 10,918	62,313,988	(4,737,124)	(14,176,636)	(28,337)	43,382,809
Beginning balance, shares at Oct. 31, 2022	10,916,853
Foreign currency translation adjustment						2,146,023
Net Income						2,406,334
Ending balance at Apr. 30, 2023	$ 11,043	62,692,276	(2,591,101)	(11,770,302)	(31,175)	48,310,741
Ending balance, shares at Apr. 30, 2023	11,042,897
Beginning balance at Jan. 31, 2023	$ 10,943	62,496,116	(3,129,474)	(12,778,779)	(28,337)	46,570,469
Beginning balance, shares at Jan. 31, 2023	10,942,353
Employee stock-based compensation		196,261				196,261
Foreign currency translation adjustment			538,373			538,373
Net Income				1,008,477		1,008,477
Stock issued for options exercised	$ 100	(101)			(2,838)	(2,839)
Stock issued from options exercised, shares	100,544
Ending balance at Apr. 30, 2023	$ 11,043	$ 62,692,276	$ (2,591,101)	$ (11,770,302)	$ (31,175)	$ 48,310,741
Ending balance, shares at Apr. 30, 2023	11,042,897

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 2,406,334	$ 1,828,551
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	342,770	443,941
Stock-based compensation	378,414	690,743
Deferred income taxes	120,868	(63,824)
(Increase) decrease in operating assets:
Accounts receivable	(905,242)	2,028,159
Inventory	(483,269)	(588,779)
Unbilled receivables	(484,570)	711,678
Prepaid expenses	(474,438)	801,354
Other current assets	(75,554)	28,144
Increase (decrease) in operating liabilities:
Accounts payable and other current liabilities	(1,127,450)	(278,061)
Deferred revenue	41,104	(894,245)
Net Cash (used in) provided by Operating Activities	(261,033)	4,707,661
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(166,623)	(1,083,111)
Purchases of other intangible assets	(57,731)	(58,365)
Net Cash Used in Investing Activities	(224,354)	(1,141,476)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes		(63,559)
Purchase of treasury stock	(2,838)
Net Cash Used in Financing Activities	(2,838)	(63,559)
EFFECT OF CURRENCY TRANSLATION ON CHANGES IN CASH	1,015,972	(592,163)
NET INCREASE IN CASH AND CASH EQUIVALENTS	527,747	2,910,463
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	22,927,371	17,747,656
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	23,455,118	20,658,119
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest		2,902
Cash paid for taxes	$ 1,270,100	$ 51,264

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Apr. 30, 2023
Accounting Policies [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Coda Octopus Group, Inc. (“Coda,” “the Company,” or “we”) operates two distinct operating business units. These are the Marine Technology Business (also referred to in this Form 10-Q as “Products Business,” or “Products Segment”) and the Marine Engineering Business (also referred to in this Form 10-Q as “Services Business,” “Engineering Business” or “Services Segment”). The Marine Technology Business sells technology solutions to the subsea and underwater markets. These solutions are designed, developed, manufactured, and supported by the Company. Its main revenue generating product is the Echoscope ® ® The consolidated financial statements include the accounts of Coda Octopus Group, Inc. and its wholly owned domestic and foreign subsidiaries. All significant intercompany transactions and balances have been eliminated in the consolidated financial statements. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues including unbilled and deferred revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates related to the percentage of completion method used to account for contracts, including costs and earnings in excess of billings and billings in excess of costs, estimated earnings and the valuation of goodwill.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Apr. 30, 2023
Revenue Recognition
REVENUE RECOGNITION	NOTE 2 – REVENUE RECOGNITION The Company recognizes revenue in accordance with the Financial Accounting Standards Board’s Topic 606, Revenue from Contracts with Customers Topic 606 has established a five-step process to determine the amount of revenue to record from contracts with customers. The five steps are: ● Identify the contract with the customer; ● Identify the performance obligations in the contract with customer; ● Determine the transaction price; ● Allocate the transaction price to performance obligations; and ● Recognize revenue when (or as) a performance obligation is satisfied. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 2 – REVENUE RECOGNITION (Continued) Our revenues are earned under formal contracts with our customers. These are derived from both sales and rental of underwater technologies and equipment for real time 3D imaging, mapping, defense and survey applications by the Marine Technology Business and from engineering services which the Company’s Services Business provide via sub-contracts primarily with prime defense contractors. Our contracts do not include the possibility for additional contingent consideration so that our determination of the contract price does not involve having to consider potential additional variable consideration. Our sales do not include a right of return by the customer. Regarding our Marine Technology Business (“Products Business”), all our products are sold on a stand-alone basis and those market prices are evidence of the value of the products. To the extent that we also provide services (e.g., installation, training, post-sales technical support, customization of our technology for bespoke application, etc.), those services are either included as part of the product or are subject to written contracts based on the stand-alone value of those services. Revenue from the sale of services is recognized when those services have been performed and evidence of the provision of those services exists. Revenue derived from either our subscription package offerings or rental of our equipment is recognized when performance obligations are met, in particular, on a daily basis during the subscription or rental period. For arrangements with multiple performance obligations, we recognize product revenue by allocating the transaction price to each performance obligation based on a relative standalone selling price basis and recognize revenue when performance obligations are met including when equipment is delivered, and for rental of equipment, when installation, training and other services prescribed by the contract are performed. Our contracts sometimes require customer payments in advance of revenue recognition. These are recognized as revenue when the Company has fulfilled its obligations under the respective contracts. Until such time, we recognize these prepayments as deferred revenue. For software license sales for which any services rendered are not considered distinct to the functionality of the software, we recognize revenue upon delivery of the software by the provision of the activation codes to the software. With respect to revenues related to our Services Business, there are contracts in place that specify the fixed hourly rate and other reimbursable costs to be billed based on material and direct labor hours incurred and revenue is recognized on these contracts based on material and the direct labor hours incurred. Revenues from fixed-price contracts are recognized on the percentage of completion method, measured by the percentage of costs incurred (materials and direct labor hours) to date to estimated total services (materials and direct labor hours) for each contract. We consider the effects of inflation on both the costs incurred and on the total overall cost estimate in order to ensure that we do not prematurely recognize revenue. This method is used as we consider expenditures for direct materials and labor hours to be the best available measure of progress on these contracts. On a quarterly basis, we examine all our fixed-price contracts to determine if there are any losses to be recognized during the period. Any such loss is recorded in the quarter in which the loss first becomes apparent based upon costs incurred to date and the estimated costs to complete as determined by experience from similar contracts. Variations from estimated contract performance could result in adjustments to operating results. Recoverability of Deferred Costs In accordance with Topic 606, we defer costs on projects for service revenue. Deferred costs consist primarily of incremental direct costs to customize and install systems, as defined in individual customer contracts, including costs to acquire hardware and software from third parties and payroll costs for our employees and other third parties. The pricing of these service contracts is intended to provide for the recovery of these types of deferred costs over the life of the contract. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 2 – REVENUE RECOGNITION (Continued) We recognize such costs in accordance with our revenue recognition policy by contract. For revenue recognized under the percentage of completion method, costs are recognized as products are delivered or services are provided in accordance with the percentage of completion calculation. For revenue recognized over time, costs are recognized ratably over the term of the contract, commencing on the date of revenue recognition. At each quarterly balance sheet date, we review deferred costs, to ensure they are ultimately recoverable. Any anticipated losses on uncompleted contracts are recognized when evidence indicates the estimated total cost of a contract exceeds its estimated total revenue. Other Revenue Disclosures See Notes 14 and 15 – Segment Analysis and Disaggregation of Revenue of our unaudited Consolidated Financial Statements. These Notes provide disclosure of our revenue by segment (Products Business versus Services Business); revenues from external customers and cost of those revenues; and split of revenue by geography including within and outside the U.S.

COST OF REVENUES

COST OF REVENUES	6 Months Ended
	Apr. 30, 2023
Cost Of Revenues
COST OF REVENUES	NOTE 3 – COST OF REVENUES Our Cost of Revenues includes the cost of materials and related direct costs. With respect to sales made through the Company’s sales agents distribution network, we include in our Costs of Revenues commissions paid to agents for the specific sales they make. Without using agents, we would not be eligible to participate in the Request for Proposals (“RFP”) for these sales on which we incur commission costs. All other sales-related expenses, including those related to unsuccessful bids, are included in selling, general and administrative costs. As a component of Cost of Revenues, commissions in the 3-month period ended April 30, 2023, were $ 102,452 262,632 607,828 401,004

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Apr. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amounts of our financial instruments approximate fair values because of their short-term nature.

FOREIGN CURRENCY TRANSLATION

FOREIGN CURRENCY TRANSLATION	6 Months Ended
	Apr. 30, 2023
Foreign Currency [Abstract]
FOREIGN CURRENCY TRANSLATION	NOTE 5 – FOREIGN CURRENCY TRANSLATION Assets and liabilities are translated at the prevailing exchange rates at the balance sheet dates. Related revenues and expenses are translated at weighted average exchange rates in effect during the reporting period. Stockholders’ equity is recorded at historical exchange rates. Resulting translation adjustments are recorded as a separate component in stockholders’ equity as part of accumulated other comprehensive income or (loss) as may be appropriate. Foreign currency transaction gains and losses are included in the consolidated statements of income and comprehensive income. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022

INVENTORY

INVENTORY	6 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
INVENTORY	NOTE 6 – INVENTORY Inventory is stated at the lower of cost (First In, First Out method) or net realizable value. Inventory consisted of the following components as of: SCHEDULE OF COMPONENTS OF INVENTORY April 30, October 31, 2023 2022 Raw materials and parts $ 8,568,699 $ 7,219,344 Work in progress 366,485 383,427 Finished goods 2,298,501 2,424,340 Total Inventory $ 11,233,685 $ 10,027,111

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Apr. 30, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 7 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of: SCHEDULE OF PROPERTY AND EQUIPMENT April 30, October 31, 2023 2022 Buildings $ 5,776,882 $ 5,419,946 Land 200,000 200,000 Office machinery and equipment 1,702,189 1,556,030 Rental assets 2,493,622 2,252,292 Furniture, fixtures and improvements 1,197,705 1,108,787 Totals 11,370,398 10,537,055 Less: accumulated depreciation (5,299,732 ) (4,704,523 ) Total Property and Equipment, net $ 6,070,666 $ 5,832,532

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	6 Months Ended
	Apr. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER CURRENT ASSETS	NOTE 8 – OTHER CURRENT ASSETS Other current assets consisted of the following as of: SUMMARY OF OTHER CURRENT ASSETS April 30, October 31, 2023 2022 Deposits $ 24,647 $ 18,631 Other Tax Receivables 214,274 151,217 Employee Retention Credit Receivables 173,213 173,213 Other Receivables 10,236 - Total Other Current Assets $ 422,371 $ 343,061 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022

CONTRACTS IN PROGRESS

CONTRACTS IN PROGRESS	6 Months Ended
	Apr. 30, 2023
Contracts In Progress
CONTRACTS IN PROGRESS	NOTE 9 – CONTRACTS IN PROGRESS Costs and estimated earnings in excess of billings on uncompleted contracts represent accumulated project expenses and fees which have not been invoiced to customers as of the balance sheet date. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $ 1,099,066 602,115 Deferred Revenue of $ 878,423 790,458 Sales of equipment include a separate performance obligation for warranty or Through Life Support (“TLS”) which may be optionally purchased by the customer. This is treated as deferred revenue which are amortized over the relevant obligation period (12 months is our standard warranty or 36 or 60-months from the date of delivery for our TLS product). These amounts are stated on the consolidated balance sheets as a component of Deferred Revenue and were $ 233,592 229,238

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Apr. 30, 2023
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 10 – CONCENTRATIONS Significant Customers During the three-months ended April 30, 2023, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $ 1,270,138 24.0% 1,365,300 35.1% During the three-months ended April 30, 2022, the Company had one customer from whom it generated sales greater than 10% of net revenues. Revenue from this customer was $ 549,134 11% 184,374 9.3% During the six-months ended April 30, 2023, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $ 2,517,093 23.1% 1,483,542 38.1% During the six-months ended April 30, 2022, the Company had two customers from whom it generated sales greater than 10% of net revenues. Revenues from these customers were $ 2,374,201 22% 600 0.03%

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Apr. 30, 2023
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 11 – RECENT ACCOUNTING PRONOUNCEMENTS There have been no new accounting pronouncements not yet effective that have significance or potential significance to our Consolidated Financial Statements. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Apr. 30, 2023
NET INCOME PER SHARE:
EARNINGS PER SHARE	NOTE 12 – EARNINGS PER SHARE SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Three Months Six Months Six Months Ended Ended Ended Ended Fiscal Period April 30, 2023 April 30, 2022 April 30, 2023 April 30, 2022 Numerator: Net Income $ 1,008,477 $ 611,303 $ 2,406,334 $ 1,828,551 Denominator: Basic weighted average common shares outstanding 11,010,077 10,857,673 10,970,806 10,857,429 Unused portion of options and restricted stock awards 320,677 547,834 320,677 547,834 Diluted outstanding shares 11,330,754 11,405,507 11,291,483 11,405,263 Net income per share Basic $ 0.09 $ 0.06 $ 0.22 $ 0.17 Diluted $ 0.09 $ 0.05 $ 0.21 $ 0.16

2017 STOCK INCENTIVE PLAN

2017 STOCK INCENTIVE PLAN	6 Months Ended
	Apr. 30, 2023
Stock Incentive Plan
2017 STOCK INCENTIVE PLAN	NOTE 13 – 2017 STOCK INCENTIVE PLAN 2017 Stock Incentive Plan On December 6, 2017, the Board of Directors adopted the 2017 Stock Incentive Plan (the “2017 Plan”). The purpose of the Plan is to advance the interests of the Company and its stockholders by enabling the Company and its subsidiaries to attract and retain qualified individuals through opportunities for equity participation in the Company, and to reward those individuals who contribute to the Company’s achievement of its economic objectives. The Plan was adopted subject to stockholders’ approval and was approved by Stockholders at the Company’s Annual General Meeting held on July 24, 2018. The maximum number of shares of Common Stock available for issuance under the 2017 Plan is 913,612 During the six-month period ended April 30, 2023, the Company granted 39,000 146,168 90,073 No 321,026 378,414 During the six-month period ended April 30, 2022, the Company granted 55,181 restricted stock awards to various employees 177,333 3,333 1,107 690,743 2021 Stock Incentive Plan On July 12, 2021, the Board of Directors adopted the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan was approved by the Company’s stockholders at its Annual General Meeting held on September 14, 2021. The 2021 Plan is identical to the 2017 Plan in all material respects, except that the number of shares available for issuance thereunder is 1,000,000 As of April 30, 2023, there were a total of 1,321,026 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022

SEGMENT ANALYSIS

SEGMENT ANALYSIS	6 Months Ended
	Apr. 30, 2023
Segment Reporting [Abstract]
SEGMENT ANALYSIS	NOTE 14 – SEGMENT ANALYSIS Based on the fundamental difference in the types of offering, products and solutions versus services, we operate two distinct reportable segments which are managed separately. Coda Octopus Products (“Marine Technology Business” or “Products Business” or “Products Segment”) operations are comprised primarily of sale and/or rental of underwater technology sonar solutions, comprising hardware and software and support services. Coda Octopus Martech and Coda Octopus Colmek (“Marine Engineering Business” or “Services Segment”) provide engineering services primarily as sub-contractors to prime defense contractors. Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs (“Overhead”). The Company evaluates performance and allocates resources based upon segment operating income. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies. There are inter-segment sales which have been eliminated in our financial statements but are disclosed in the tables below for information purposes. The following tables summarize segment asset and operating balances by reportable segment for the three and six months ended April 30, 2023 and 2022, respectively. The Company’s reportable business segments sell their goods and services in four geographic locations: ● Americas ● Europe ● Australia/Asia ● Middle East/Africa CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 14 -SEGMENT ANALYSIS (Continued) SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2023 Net Revenues $ 3,583,429 $ 1,718,080 $ - $ 5,301,509 Cost of Revenues 885,382 792,886 - 1,678,268 Gross Profit 2,698,047 925,194 - 3,623,241 Research & Development 518,405 7,534 - 525,939 Selling, General & Administrative 877,961 655,739 708,494 2,242,194 Total Operating Expenses 1,396,366 663,273 708,494 2,768,133 Income (Loss) from Operations 1,301,681 261,921 (708,494 ) 855,108 Other Income Other Income 149,907 23,469 - 173,376 Interest Expense Total Other Income 149,907 23,469 - 173,376 Income (Loss) before Income Taxes 1,451,588 285,390 (708,494 ) 1,028,484 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (108,712 ) (2,185 ) 42,124 (68,773 ) Deferred Tax (Expense) Benefit - - 48,766 48,766 Total Income Tax (Expense) Benefit (108,712 ) (2,185 ) 90,890 (20,007 ) Net Income (Loss) $ 1,342,876 $ 283,205 $ (617,604 ) $ 1,008,477 Supplemental Disclosures Total Assets $ 36,187,625 $ 13,618,065 $ 1,097,772 $ 50,903,462 Total Liabilities $ 1,665,630 $ 802,459 $ 124,632 $ 2,592,721 Revenues from Intercompany Sales - eliminated from sales above $ 2,084,321 $ 169,811 $ (80,000 ) $ 2,174,132 Depreciation and Amortization $ 143,565 $ 24,757 $ 10,441 $ 178,763 Purchases of Long-lived Assets $ 64,191 $ 18,012 $ 36,246 $ 118,448 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2022 Net Revenues $ 3,491,009 $ 1,493,829 $ - $ 4,984,838 Cost of Revenues 816,033 1,137,099 - 1,953,132 Gross Profit 2,674,976 356,730 - 3,031,706 Research & Development 617,246 (99,868 ) - 517,378 Selling, General & Administrative 569,451 683,612 780,053 2,033,116 Total Operating Expenses 1,186,697 583,744 780,053 2,550,494 Income (Loss) from Operations 1,488,279 (227,014 ) (780,053 ) 481,212 Other Income (Expense) Other Income 9,055 4,098 1,344 14,497 Interest Expense (2,502 ) - - (2,502 ) Total Other Income 6,553 4,098 1,344 11,995 Income (Loss) before Income Taxes 1,494,832 (222,916 ) (778,709 ) 493,207 Income Tax (Expense) Benefit Current Tax (Expense) Benefit 279 146,890 (38,019 ) 109,150 Deferred Tax (Expense) Benefit (1,926 ) (45,184 ) 56,056 8,946 Total Income Tax (Expense) Benefit (1,647 ) 101,706 18,037 118,096 Net Income (Loss) $ 1,493,185 $ (121,210 ) $ (760,672 ) $ 611,303 Supplemental Disclosures Total Assets $ 30,503,346 $ 13,541,238 $ 818,060 $ 44,862,644 Total Liabilities $ 2,255,971 $ 616,133 $ 447,774 $ 3,319,878 Revenues from Intercompany Sales - eliminated from sales above $ 413,654 $ 126,870 $ 607,500 $ 1,148,024 Depreciation and Amortization $ 241,469 $ 31,190 $ 9,816 $ 282,475 Purchases of Long-lived Assets $ 84,969 $ 11,049 $ 43,494 $ 139,512 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2023 Net Revenues $ 7,407,588 $ 3,490,205 $ - $ 10,897,793 Cost of Revenues 1,949,626 1,571,921 - 3,521,547 Gross Profit 5,457,962 1,918,284 - 7,376,246 Research & Development 956,713 13,684 - 970,397 Selling, General & Administrative 1,539,720 1,302,049 1,362,876 4,204,645 Total Operating Expenses 2,496,433 1,315,733 1,362,876 5,175,042 Income (Loss) from Operations 2,961,529 602,551 (1,362,876 ) 2,201,204 Other Income (Expense) Other Income 164,927 24,214 - 189,141 Total Other Income 164,927 24,214 - 189,141 Income (Loss) before Income Taxes 3,126,456 626,765 (1,362,876 ) 2,390,345 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (127,585 ) (22,041 ) 80,842 (68,784 ) Deferred Tax Benefit (Expense) - - 84,773 84,773 Total Income Tax (Expense) Benefit (127,585 ) (22,041 ) 165,615 15,989 Net Income (Loss) $ 2,998,871 $ 604,724 $ (1,197,261 ) $ 2,406,334 Supplemental Disclosures Total Assets $ 36,187,625 $ 13,618,065 $ 1,097,772 $ 50,903,462 Total Liabilities $ 1,665,630 $ 802,459 $ 124,632 $ 2,592,721 Revenues from Intercompany Sales - eliminated from sales above $ 2,913,995 $ 215,518 $ 600,000 $ 3,729,513 Depreciation and Amortization $ 272,403 $ 49,667 $ 20,700 $ 342,770 Purchases of Long-lived Assets $ 143,833 $ 22,792 $ 57,731 $ 224,355 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2022 Net Revenues $ 7,314,757 $ 3,508,289 $ - $ 10,823,046 Cost of Revenues 1,388,325 2,243,081 - 3,631,406 Gross Profit 5,926,432 1,265,208 - 7,191,640 Research & Development 1,146,621 43,647 - 1,190,268 Selling, General & Administrative 1,327,947 1,339,787 1,487,372 4,155,106 Total Operating Expenses 2,474,568 1,383,434 1,487,372 5,345,374 Income (Loss) from Operations 3,451,864 (118,226 ) (1,487,372 ) 1,846,266 Other Income (Expense) Other Income 18,104 75,043 1,344 94,491 Interest Expense (2,502 ) - (400 ) (2,902 ) Total Other Income 15,602 75,043 944 91,589 Income (Loss) before Income Taxes 3,467,466 (43,183 ) (1,486,428 ) 1,937,855 Income Tax (Expense) Benefit Current Tax Benefit (Expense) (266,241 ) 170,926 (81,144 ) (176,459 ) Deferred Tax (Expense) Benefit 4,781 (44,980 ) 107,354 67,155 Total Income Tax (Expense) Benefit (261,460 ) 125,946 26,210 (109,304 ) Net Income (Loss) $ 3,206,006 $ 82,763 $ (1,460,218 ) $ 1,828,551 Supplemental Disclosures Total Assets $ 30,503,346 $ 13,541,238 $ 818,060 $ 44,862,644 Total Liabilities $ 2,255,971 $ 616,133 $ 447,774 $ 3,319,878 Revenues from Intercompany Sales - eliminated from sales above $ 803,049 $ 242,693 $ 1,207,500 $ 2,253,242 Depreciation and Amortization $ 377,127 $ 47,847 $ 18,967 $ 443,941 Purchases of Long-lived Assets $ 1,071,062 $ 12,049 $ 58,365 $ 1,141,476 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022

DISAGGREGATION OF REVENUE

DISAGGREGATION OF REVENUE	6 Months Ended
	Apr. 30, 2023
Revenue from Contract with Customer [Abstract]
DISAGGREGATION OF REVENUE	NOTE 15 – DISAGGREGATION OF REVENUE SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION For the Three Months Ended April 30, 2023 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 1,754,250 $ 1,144,891 $ 2,899,141 Europe 812,188 573,189 1,385,377 Australia/Asia 924,251 - 924,251 Middle East/Africa 92,740 - 92,740 Total Revenues $ 3,583,429 $ 1,718,080 $ 5,301,509 Major Goods/Service Lines Equipment Sales $ 2,500,156 $ 7,953 $ 2,508,109 Equipment Rentals 519,427 - 519,427 Software Sales 219,423 - 219,423 Engineering Parts - 1,071,906 1,071,906 Services 344,423 638,221 982,644 Total Revenues $ 3,583,429 $ 1,718,080 $ 5,301,509 Goods transferred at a point in time $ 2,719,579 $ 7,953 $ 2,727,532 Services transferred over time 863,850 1,710,127 2,573,977 Total Revenues $ 3,583,429 $ 1,718,080 $ 5,301,509 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Three Months Ended April 30, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 424,935 $ 578,244 $ 1,003,179 Europe 221,334 915,585 1,136,919 Australia/Asia 2,226,457 - 2,226,457 Middle East/Africa 618,283 - 618,283 Total Revenues $ 3,491,009 $ 1,493,829 $ 4,984,838 Major Goods/Service Lines Equipment Sales $ 2,058,137 $ 543,134 $ 2,601,271 Equipment Rentals 715,308 - 715,308 Software Sales 134,422 - 134,422 Engineering Parts - 618,335 618,335 Services 583,142 332,360 915,502 Total Revenues $ 3,491,009 $ 1,493,829 $ 4,984,838 Goods transferred at a point in time $ 2,174,910 $ 543,134 $ 2,718,044 Services transferred over time 1,316,099 950,695 2,266,794 Total Revenues $ 3,491,009 $ 1,493,829 $ 4,984,838 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Six Months Ended April 30, 2023 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 2,240,543 $ 2,467,868 $ 4,708,411 Europe 1,508,598 1,022,337 2,530,935 Australia/Asia 3,356,679 - 3,356,679 Middle East/Africa 301,768 - 301,768 Total Revenues $ 7,407,588 $ 3,490,205 $ 10,897,793 Major Goods/Service Lines Equipment Sales $ 5,072,716 $ 7,953 $ 5,080,669 Equipment Rentals 785,330 - 785,330 Software Sales 636,593 - 636,593 Engineering Parts - 2,220,985 2,220,985 Services 912,949 1,261,267 2,174,216 Total Revenues $ 7,407,588 $ 3,490,205 $ 10,897,793 Goods transferred at a point in time $ 5,709,309 $ 7,953 $ 5,717,262 Services transferred over time 1,698,279 3,482,252 5,180,531 Total Revenues $ 7,407,588 $ 3,490,205 $ 10,897,793 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Six Months Ended April 30, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 2,482,603 $ 1,782,526 $ 4,265,129 Europe 712,350 1,725,763 2,438,113 Australia/Asia 3,041,541 - 3,041,541 Middle East/Africa 1,078,263 - 1,078,263 Total Revenues $ 7,314,757 $ 3,508,289 $ 10,823,046 Major Goods/Service Lines Equipment Sales $ 4,016,982 $ 979,998 $ 4,996,980 Equipment Rentals 1,345,776 - 1,345,776 Software Sales 439,218 - 439,218 Engineering Parts - 1,918,953 1,918,953 Services 1,512,781 609,338 2,122,119 Total Revenues $ 7,314,757 $ 3,508,289 $ 10,823,046 Goods transferred at a point in time $ 4,438,551 $ 980,000 $ 5,418,551 Services transferred over time 2,876,206 2,528,289 5,404,495 Total Revenues $ 7,314,757 $ 3,508,289 $ 10,823,046 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 16 – INCOME TAXES The Company’s tax rate may vary according to several factors including the composition and percentage of its revenue from its foreign subsidiaries versus US subsidiaries. The Company’s effective tax rate for the three months ended April 30, 2023, and 2022, was 1.9 23.9 25 0.0 22 The Company’s effective tax rate for the six months ended April 30, 2023, and 2022 was ( 0.7 5.6 25 0.0 22

CERTIFIED DEPOSIT INTEREST BEAR

CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS	6 Months Ended
	Apr. 30, 2023
Other Income and Expenses [Abstract]
CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS	NOTE 17 – CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS The Company established certified deposit interest-bearing accounts with its current bankers HSBC NA and Jyske Bank in February 2023. These interest-bearing accounts are for rolling fixed short-term periods not exceeding 3 months and are classified in our financial statements as “cash equivalent”. In addition, we have an interest-bearing deposit account in UK that tracks the Bank of England base rate which has no restrictions on access and has a current rate of 4 SCHEDULE OF INTEREST RATES AND AMOUNT HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS Currency Denomination Amount HSBC Jyske Bank USD $ 13,100,000 4.5 % GBP £ 750,000 3.77 % GBP (Unrestricted access) £ 1,585,277 4.00 % Euro € 665,000 1.3 % British Pound £ 414,000 2.65 % Danish Kroner DKK 2,850,000 0.91 % USD $ 819,000 3.41 % Forward-Looking Statements The information herein contains forward-looking statements. All statements other than statements of historical fact made herein are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as “believes,” “estimates,” “could,” “possibly,” “probably,” “anticipates,” “projects,” “expects,” “may,” “will,” or “should” or other variations or similar words. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations. The following discussion and analysis should be read in conjunction with our financial statements, included herewith and the audited financial statements included in our annual report on Form 10-K filed with the Securities and Exchange Commission on January 30, 2023. This discussion should not be construed to imply that the results discussed herein will necessarily be indicative of actual operating results in the future. Such discussion represents only our management’s best present assessment. General Overview Throughout these discussions, the following terms shall have the meanings set forth below: “Current Quarter” Three-month period ended April 30, 2023 “Previous Quarter” Three-month period ended April 30, 2022 “Current Six-Month Period” Six-month period ended April 30, 2023 “Previous Six-Month Period” Six-month period ended April 30, 2022 The Company operates two distinct businesses. These are: ● the Marine Technology Business (also referred to in this Form 10-Q as “Products Business”, or “Products Segment”); and ● the Marine Engineering Business (also referred to in this Form 10-Q as “Engineering Business”, or “Services Business” or “Services Segment”). Our Marine Technology Business has operations in the USA, UK and Denmark. This business is an established technology solution provider to the subsea and underwater imaging, surveying and diving market. It has been operating as a supplier of solutions comprising both hardware and software products for over 25 years to this market and it owns key proprietary technology including real time volumetric 3D imaging sonar technology and cutting-edge diving technology, that are used in both the underwater defense and commercial markets. All design, development and manufacturing of our technology and solutions are performed within the Company. Our imaging sonar technology products and solutions marketed under the name of Echoscope ® ® Our novel diving technology is distributed under the name “CodaOctopus ® Although we generate most of our revenues from our real time 3D sonar which includes both proprietary hardware and software, we have a number of other products which we supply to the marine offshore market such as our inertial navigation systems (F280 Series ® The Services Business has operations in the USA and UK. It is a trusted Department of Defense (DoD) supplier, and its central business model is working with Prime Defense Contractors to design and manufacture sub-assemblies for utilization into larger defense mission critical integrated systems (“MCIS”). An example of such MCIS is the US Close-In-Weapons Support (CIWS) Program for the Phalanx radar-guided cannon used on combat ships. These proprietary sub-assemblies, once approved within the MCIS program, afford the Services Business the status of preferred supplier. Such status permits it to supply these sub-assemblies and upgrades in the event of obsolescence or advancement of technology for the life of the MCIS program. Customers include prime defense contractors such as Raytheon, Northrop Grumman, Thales Underwater and BAE Systems. The scope of services provided by this business encompasses concept, design, prototype, manufacturing and support. Key Pillars for our Growth Plans Our volumetric real time imaging sonar technology and our DAVD are our most promising products for the Company’s near-term growth. Our real time 3D/4D/5D/6D imaging sonars are the only underwater imaging sonars which are capable of providing complex seabed mapping, real time inspection and monitoring and providing 3D/4D/5D/6D data of moving underwater objects irrespective of water conditions including in zero visibility (which is a common and costly problem in underwater operations). Competing products such as the multibeam sonar can perform mapping (but not complex mapping) without the ability to perform real time inspection and monitoring of moving objects in 3D underwater. 3D information is important because it provides the complete detail of the underwater object being imaged (XYZ data), including the ability to make real time physical measurements. We also believe our Echoscope PIPE ® In the industry in which we operate, we are widely considered the leading solution providers for underwater real time 3D visualization. We also believe that the DAVD system is poised to radically change the way diving operations are performed globally by providing a fully integrated suite of sensor data shared in real time by the dive supervisor on the surface and the diver. Current diving is done largely by voice command missions from the topside using a disparate suite of systems for video data, communications and positioning. The DAVD tethered version is now in early-stage adoption by different teams within the US Navy, such as the underwater construction and salvage teams and has been moved from the customer’s R&D phase to their operational phase. Operational phase means that the DAVD tethered version is now a standard item available for purchase and for which budget lines are established within the various user commands within the Navy. The DAVD untethered prototype variant, which is the biggest market opportunity in the USA addressing the defense market, was delivered in our first quarter to our Navy customer for evaluation. This is currently going through testing and evaluation by the customer. As part of their evaluation process, we expect the customer to purchase a small batch of evaluation systems for wider fleet evaluation. The customer and the Company are currently actively demonstrating the untethered version at various trade shows. The concept of utilizing a pair of transparent glasses in the Head Up Display (HUD) underwater for this purpose, is protected by patent. All component parts of the DAVD system are proprietary to the Company and include software (4G USE ® Both the Marine Technology Business and Engineering Business have established synergies in terms of customers and specialized engineering skill sets (hardware, firmware and software) encompassing capturing, computing, processing and displaying data in harsh environments. Both businesses jointly bid for projects for which their common joint skills provide competitive advantage and make them eligible for such projects. Factors Affecting our Business in the Current Quarter The following is a short description of some of the most critical and pressing factors that affect our business. For a more detailed discussion of these and additional factors, refer to our Form 10-K for the fiscal year ended October 31, 2022. Cumulative Supply Chain Issues We continue to experience shortage of key electronic components in the market and suppliers are still quoting lead times as long as 12 months out for routine components, including FPGAs (Field Programmable Gate Arrays) and significant price increases. The unavailability of components affects our business in a number of ways, including: Ø Our ability to progress ongoing projects including customer projects, particularly in the Engineering Segment. Ø Significant increase in prices because demand exceeds supply for these components. Ø Our ability to manufacture systems in our Products Business. Ø Our ability to fully utilize our Production staff when critical parts are unavailable. Ø Our ability to perform outstanding contractual obligations in the Engineering Business. Inflation Inflation measured as the Consumer Price Index is significant in the countries in which we operate. For the 12-month period to April 2023, inflation rates were as follows: Ø Denmark 5.3% - source: Statistics Denmark, Ø UK 7.8% - source: Office of National Statistics; and Ø USA 4.9% - source: U.S. Bureau of Labor Statistics. Inflation affects our business in several areas including increasing our cost of operations and our bill of material costs for the products we sell and therefore our overall financial results. See the MD&A section which concerns “Inflation and Foreign Currency”. Currency Fluctuations The Company has operations in the USA, UK, Denmark, Australia and India. Our consolidated results include the Company’s foreign subsidiaries’ financial results which are translated into USD, our reporting currency. Revenue and expenses are translated using the weighted average exchange rates in effect during the reporting period. In the Current Quarter the USD has strengthened against major currencies including the British Pound, Euro, Danish Kroner and Indian Rupees (the functional currencies of the Company’s foreign subsidiaries). A significant part of our consolidated results is transacted in British Pounds and Danish Kroner and translated into USD for reporting purposes. In the Current Quarter, for the purposes of reporting revenues and expenses, the value of the Pound and Euro (the Danish Kroner is pegged to the Euro) respectively fell 5.4% and 1.1%, against the USD, when compared to the Previous Quarter. For the reporting of assets and liabilities, the Pound increased 9.2% when compared to the 2022 Fiscal year end and the Danish Kroner increased 11.3% over the same period. The impact of currency fluctuations is discussed more fully below under the “Inflation and Foreign Currency” section. See also Note 5 (Foreign Currency Translation) to the unaudited Consolidated Financial Statements. Skills/Resource Shortages and Pressure on Salaries and Wages We are experiencing skill shortages in areas that are critical to our growth strategy including experienced sales and marketing personnel, software developers and skilled electronic technicians. The inflationary conditions in the countries in which we operate (US, the UK, Denmark and India) make it difficult for us to compete for these skills as there is extreme pressure on wages. Furthermore, as a small business we do not have resilience built into our workforce. As a result, there is an inherent risk in the face of global skills shortage and higher demand for skills that we could lose skills essential to the manufacture of our products or continuation of the engineering services we provide. Concentration of Business Opportunities Where the Sales Cycle is Long and Unpredictable The Services Business revenues are highly concentrated and are largely generated from sub-contracts with Prime Defense Contractors. The sales cycle is generally protracted, and this may affect quarterly revenues. It is also dependent on the federal government appropriating budget for defense projects and where the federal government is unable to find consensus in the US Congress, this affects the timely award of sub-contracts from Prime Defense Contractors to our Services Business, which is reliant on these awards. Furthermore, the Products Business key opportunities which are critical to its growth strategy are in the Defense Market for both its imaging sonars and the DAVD, both of which are key pillars of the Company’s growth strategy. Due to the protracted nature of the government procurement process and cycle for defense spending under federal and/or state budgets, the sales cycle can be long and unpredictable, thus affecting timing of orders and thus quarterly revenues and our overall growth plans. Impact on Revenues and Earnings We are uncertain as to the extent of the impact the factors disclosed above and in our Form 10-K, covering the fiscal year ended October 31, 2022, will have on our future financial results. Impact on Liquidity, Balance Sheet and Assets These factors may adversely impact on our availability of free cash flow, working capital and business prospects. As of April 30, 2023, we had cash and cash equivalents of $23,455,118 and in the Current Six-Month Period we generated a cash deficit from operations of ($261,033). Based on our outstanding obligations and our cash balances, we believe we have sufficient working capital to effectively continue our business operations for the foreseeable future. Critical Accounting Policies This discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements that have been prepared under accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported values of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported levels of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Below is a discussion of accounting policies that we consider critical to an understanding of our financial condition and operating results and that may require complex judgment in their application or require estimates about matters which are inherently uncertain. A discussion of our significant accounting policies, including further discussion of the accounting policies described below, can be found in Note 2, “Summary of Accounting Policies” of our Annual Report on Form 10-K for the fiscal year ended October 31, 2022. Revenue Recognition Our revenues are earned under formal contracts with our customers and are derived from both sales and rental of underwater solutions for imaging, mapping, defense and survey applications and from the engineering services that we provide. Our contracts do not include the possibility for additional contingent consideration so that our determination of the contract price does not involve having to consider potential variable additional consideration. Our product sales do not include a right of return by the customer. Regarding our Products Business, all our products are sold on a stand-alone basis and those market prices are evidence of the value of the products. To the extent that we also provide services (e.g., installation, training, etc.), those services are either included as part of the product or are subject to written contracts based on the stand-alone value of those services. Revenue from the sale of services is recognized when those services have been provided to the customer and evidence of the provision of those services exists. For further discussion of our revenue recognition accounting policies, refer to Note 2 – “Revenue Recognition” in these unaudited consolidated financial statements and Note 2 “Summary of Accounting Policies” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022. Recoverability of Deferred Costs We defer costs on projects for service revenue. Deferred costs consist primarily of direct and incremental costs to customize and install systems, as defined in individual customer contracts, including costs to acquire hardware and software from third parties and payroll costs for our employees and other third parties. We recognize such costs on a contract-by-contract basis in accordance with our revenue recognition policy. For revenue recognized under the completed contract method, costs are deferred until the products are delivered, or upon completion of services or, where applicable, customer acceptance. For revenue recognized under the percentage of completion method, costs are recognized as products are delivered or services are provided in accordance with the percentage of completion calculation. For revenue recognized ratably over the term of the contract, costs are also recognized ratably over the term of the contract, commencing on the date of revenue recognition. At each balance sheet date, we review deferred costs, to ensure they are ultimately recoverable. Any anticipated losses on uncompleted contracts are recognized when evidence indicates the estimated total cost of a contract exceeds its estimated total revenue. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification 740, Income Taxes (ASC 740). Under ASC 740, deferred income tax assets and liabilities are recorded for the income tax effects of differences between the bases of assets and liabilities for financial reporting purposes and their bases for income tax reporting. The Company’s differences arise principally from the use of various accelerated and modified accelerated cost recovery system for income tax purposes versus straight line depreciation used for book purposes and from the utilization of net operating loss carryforwards. Deferred tax assets and liabilities are the amounts by which the Company’s future income taxes are expected to be impacted by these differences as they reverse. Deferred tax assets are based on differences that are expected to decrease future income taxes as they reverse. Correspondingly, deferred tax liabilities are based on differences that are expected to increase future income taxes as they reverse. For income tax purposes, the Company uses the percentage of completion method of recognizing revenues on long-term contracts which is consistent with the Company’s financial reporting under GAAP. Intangible Assets Intangible assets consist principally of the excess of cost over the fair value of net assets acquired (or goodwill), customer relationships, non-compete agreements and licenses. Goodwill was allocated to our reporting units based on the original purchase price allocation. Goodwill is not amortized and is evaluated for impairment annually or more often if circumstances indicate impairment may exist. Customer relationships, non-compete agreements, patents and licenses are being amortized on a straight-line basis over periods of 2 to 15 years. The Company amortizes its finite-lived intangible assets using the straight-line method over their estimated period of benefit. Annually, or sooner if there is indication of a loss in value, we evaluate the recoverability of intangible assets and consider events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. There were no impairment charges during the periods presented. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of the reporting unit with its’ carrying amount, including goodwill. If the fair value, which is based on future cash flows, exceeds the carrying amount, goodwill is not considered impaired. If the carrying amount exceeds the fair value, goodwill is reduced by the excess of the carrying amount of the reporting unit over that reporting unit’s fair value. Goodwill can never be reduced below zero, if any. At the end of each year, we evaluate goodwill on a separate reporting unit basis to assess recoverability, and impairments, if any, are recognized in earnings. Consolidated Results of Operations Our consolidated financial results include the results of the Company’s foreign subsidiaries. Foreign subsidiaries’ results are translated from their functional currencies to USD for reporting purposes. Fluctuations in currency can therefore have an impact on our financial results, including our translated revenue. One factor in the Current Quarter is that the translated revenue of the Company’s foreign subsidiaries was lower due to currency fluctuations. During the Current Quarter our consolidated revenue was $5,301,509 compared to $4,984,838 in the Previous Quarter, representing an increase of 6.4%. However, applying the same exchange rate (“referred to as “the Constant Rate”) as the Previous Quarter, revenue of our foreign subsidiaries would have increased by $429,180 thus resulting in an increase in consolidated revenue in the Current Quarter by 8.6% over the Previous Quarter. During the Current Quarter total operating expenses increased by 8.5% and income from operations increased by 77.7%. Net income before taxes increased by 108.5% and was $1,028,484 compared to $493,207, representing an increase of 108.5% and net income after taxes was $1,008,477 compared to $611,303, representing an increase of 65.0%. Segment Summary Products Business In the Current Quarter, the Products Business generated $3,583,429 or 67.6% of our consolidated revenues compared to $3,491,009 or 70.0% in the Previous Quarter, representing a 2.6% increase over the Previous Quarter. However, when applying the Constant Rate, the Products Business revenue would have increased to $3,665,060, representing an increase of 5.0% over the Previous Quarter. Gross Profit Margin was slightly lower at 75.3% in the Current Quarter compared to 76.6% in the Previous Quarter, representing a fall of 1.3%. Agents Commission in the Current Quarter fell by 61.0% and was $102,452 compared to $262,632 in the Previous Quarter. This reflects a decrease in sales originating from Asia in the Current Quarter. Total operating expenses increased in the Products Business by 17.7% and were $1,396,366 compared to $1,186,697 in the Previous Quarter. This is largely due to exchange rate variance and represents a non-cash item within SG&A. Income from operations was $1,301,681. Services Business In the Current Quarter, the Services Business generated $1,718,080 or 32.4% of our consolidated revenues compared to $1,493,829 or 30.0% in the Previous Quarter, representing an increase in sales of 15.0%. However, when applying the Constant Rate, the Services Business revenue would have increased to $1,748,958, representing an increase of 17.1% over the Previous Quarter. when applying the Constant Rate. Although the Services Business revenues increased over the Previous Quarter, it is still off its internal budgetary plan due to delays in closing contracts with its defense customers. Total Operating Expenses increased in the Services Business by 13.6% and were $663,273 compared to $583,744 in the Previous Quarter. Income from operations was $261,921. Results of Operations for the Current Quarter compared to the Previous Quarter Revenue Gross Profit Margins : Gross profit margins reported in our financial results may vary according to several factors. These include: ● The percentage of consolidated sales attributable to the Marine Technology Business versus the Services Business. The gross profit margin yielded by the Marine Technology Business is generally higher than that of the Services Business. ● The percentage of consolidated sales attributable to the Services Business. The Services Business yields a lower gross profit margin on generated sales which are largely based on time and materials for our Department of Defense contracts (DoD subcontracts). ● The mix of sales within the Marine Technology Business during the reporting period: ● Outright Sale versus Rentals. ● Hardware Sale versus Software (software is generally higher margin). ● Mix of Services rendered in the period – Offshore Engineering Services versus paid customer Research and Development Projects. ● Level of commissions on products which may vary according to volume. Both the Services and Marine Technology Businesses work with sales/distribution agents. Most of the Marine Technology Business sales in Asia is via agents or distributors. See Note 3 to the unaudited Consolidated Financial Statements “Cost of Revenues” for more discussion on this. Although the Services Business works with sales agents, this is on a much lesser scale than the Marine Technology Business. ● Level of Rental Assets in the Marine Technology Business’ Rental Pool and therefore the depreciation expenses may vary accordingly. ● The mix of engineering projects performed by our Services Business (Design prototyping versus manufacturing), may also affect Gross Profit Margins. In the Current Quarter, gross profit margins for the Marine Technology Business were 75.3% compared to 76.6% in the Previous Quarter. For the Services Business these were 53.9% in the Current Quarter compared to 23.9% in the Previous Quarter. In the Previous Quarter the gross profit margin of the Services Business was exceptionally low due to a concentration of revenues from a particular project that was taken on to facilitate the business servicing a new market (motor racing). Since there are more variable factors affecting gross profit margins in the Marine Technology Business (Products Business), a table showing a summary of break-out of sales generated by this business in the Current Quarter compared to the Previous Quarter is set out below: Marine Technology (Products Business) April 30, 2023 April 30, 2022 Percentage Change Equipment Sales $ 2,500,156 $ 2,058,137 Increase of 21.5% Equipment Rentals 519,427 715,308 Decrease of 27.4% Software Sales 219,423 134,422 Increase of 63.2% Services 344,423 583,142 Decrease of 40.9% Total Net Sales $ 3,583,429 $ 3,491,009 Increase of 2.6% In the Current Quarter the Marine Technology Business incurred commission costs of $102,452 compared to $262,632 in the Previous Quarter, representing a decrease of 61.0%. A significant percentage of our sales in foreign territories such as South Korea, Japan and China are conducted through sales agents and distributors. In the Previous Quarter we had significant equipment sales in the territory of Asia and therefore commission costs were higher. Further information on the performance of each business segment in the Current Quarter compared to the Previous Quarter including revenues by type and geography can be found in Notes 14 and Note 15 (Segment Analysis and Disaggregation of Revenue, respectively) to the unaudited Consolidated Financial Statements. Research and Development (R&D) R&D expenditure is incurred by the Services Business on its Thermite ® R&D expenditure in the Products Business is incurred in connection with investments it makes in developing and maintaining its products and solutions. These expenditures are an essential part of our business, as on an ongoing basis we need to continue to innovate around our solutions and remain competitive in the markets in which we operate. Segment April 30, 2023 April 30, 2022 Percentage Change Services Segment R&D Expenditure $ 7,534 $ (99,868 ) Increase of 107.5% Products Segment R&D Expenditure $ 518,405 $ 617,246 Decrease of 16.0% In the Previous Quarter due to supply chain issues the Services Business in anticipation of receiving a customer’s order had incurred expenditure on this project prior to the actual receipt of this order. Following receiving the customer’s purchase order, the expenditure of $99,868 was reallocated to the customer project, thus the reason for the negative amount represented above. Selling, General and Administrative Expenses (SG&A) The increase in SG&A in the Current Quarter is due an increase in Legal and Professional. This area has increased largely because of the recent engagement of tax specialists to assist in the preparation of the Company’s federal and state tax returns and an increase in our audit fees. Furthermore, within the category of SG&A we have transactions which are cash charges and non-cash charges. The non-cash charges comprise depreciation, amortization and stock-based compensation charges. In the Current Quarter non-cash items as a percentage of SG&A expenses was 13.9% compared to 24.8 % in the Previous Quarter and this is largely due to the significant reduction in stock-based compensation charges in the Current Quarter which decreased by 46.3% and were $196,261 compared to $365,567 in the Previous Quarter. Key Areas of SG&A Expenditure across the Company for the Current Quarter compared to the Previous Quarter are: Expenditure April 30, 2023 April 30, 2022 Percentage Change Wages and Salaries $ 907,297 $ 940,460 Decrease of 3.5% Legal and Professional Fees (including accounting and audit) $ 467,784 $ 390,218 Increase of 19.9% Rent for our various locations $ 14,263 $ 14,742 Decrease of 3.3% Marketing $ 66,578 $ 108,569 Decrease of 38.7% Although in the Current Quarter “Wages and Salaries” fell, we believe on the full year basis this category will increase over the prior financial year due to high inflation in the countries in which we operate and potential new hires in key areas such as business development, marketing, electronic engineers and software development. In general, the category of “Rent” is not material for the Company as we own most of our premises and facilities. The current category of rent largely reflects our premises in Copenhagen and storage facility that we maintain for our business operations. The increase in “Legal and Professional” reflects an increase in both audit fees and the engagement of new tax specialists. Our marketing comprises a range of activities which include trade shows in different parts of the world, particularly in Europe, North America, Asia and the Middle East. Although Marketing expenditure has fallen in the Current Quarter, we anticipate that on a full year basis this will increase over the previous financial year as we shift our focus from R&D to business development and marketing including undertaking efforts to build our brands. We therefore anticipate a significant increase in this area of expenditure this year and subsequent years. Operating Income Other Income Net Income before income taxes Net Income: Comprehensive Income . Results of Operations for the Current Six Month Period compared to the Previous Six Month Period Revenue Gross Profit Margins : Gross profit margins reported in our financial results may vary according to several factors. These include: ● The percentage of consolidated sales attributable to the Marine Technology Business versus the Services Business. The gross profit margin yielded by the Marine Technology Business is generally higher than that of the Services Business. ● The percentage of consolidated sales attributable to the Services Business. The Services Business yields a lower gross profit margin on generated sales which are largely based on time and materials for our Department of Defense contracts (DoD subcontracts). ● The mix of sales within the Marine Technology Business during the reporting period: ● Outright Sale versus Rentals. ● Hardware Sale versus Software (software is generally higher margin). ● Mix of Services rendered in the period – Offshore Engineering Services versus paid Customer Research and Development Projects. ● Level of commissions on products which may vary according to volume. Both the Services and Marine Technology Businesses work with sales/distribution agents. Most of the Marine Technology Business sales in Asia is via agents or distributors. See Note 3 to the unaudited Consolidated Financial Statements “Cost of Revenue” for more discussion on this. ● Level of Rental Assets in the Marine Technology Business’ Rental Pool and therefore the depreciation expenses may vary accordingly. ● The mix of engineering projects performed by our Services Business (Design prototyping versus manufacturing), may also affect Gross Profit Margins. In the Current Six Month Period gross profit margins for the Marine Technology Business were 73.7% compared to 81.0% in the Previous Six Month Period. For the Services Business these were 55.0% compared to 36.1% in the Previous Quarter. In the Current Six

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Apr. 30, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF COMPONENTS OF INVENTORY	Inventory is stated at the lower of cost (First In, First Out method) or net realizable value. Inventory consisted of the following components as of: SCHEDULE OF COMPONENTS OF INVENTORY April 30, October 31, 2023 2022 Raw materials and parts $ 8,568,699 $ 7,219,344 Work in progress 366,485 383,427 Finished goods 2,298,501 2,424,340 Total Inventory $ 11,233,685 $ 10,027,111

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Apr. 30, 2023
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT	Property and equipment consisted of the following as of: SCHEDULE OF PROPERTY AND EQUIPMENT April 30, October 31, 2023 2022 Buildings $ 5,776,882 $ 5,419,946 Land 200,000 200,000 Office machinery and equipment 1,702,189 1,556,030 Rental assets 2,493,622 2,252,292 Furniture, fixtures and improvements 1,197,705 1,108,787 Totals 11,370,398 10,537,055 Less: accumulated depreciation (5,299,732 ) (4,704,523 ) Total Property and Equipment, net $ 6,070,666 $ 5,832,532

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Apr. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
SUMMARY OF OTHER CURRENT ASSETS	Other current assets consisted of the following as of: SUMMARY OF OTHER CURRENT ASSETS April 30, October 31, 2023 2022 Deposits $ 24,647 $ 18,631 Other Tax Receivables 214,274 151,217 Employee Retention Credit Receivables 173,213 173,213 Other Receivables 10,236 - Total Other Current Assets $ 422,371 $ 343,061

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Apr. 30, 2023
NET INCOME PER SHARE:
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED	SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Three Months Six Months Six Months Ended Ended Ended Ended Fiscal Period April 30, 2023 April 30, 2022 April 30, 2023 April 30, 2022 Numerator: Net Income $ 1,008,477 $ 611,303 $ 2,406,334 $ 1,828,551 Denominator: Basic weighted average common shares outstanding 11,010,077 10,857,673 10,970,806 10,857,429 Unused portion of options and restricted stock awards 320,677 547,834 320,677 547,834 Diluted outstanding shares 11,330,754 11,405,507 11,291,483 11,405,263 Net income per share Basic $ 0.09 $ 0.06 $ 0.22 $ 0.17 Diluted $ 0.09 $ 0.05 $ 0.21 $ 0.16

SEGMENT ANALYSIS (Tables)

SEGMENT ANALYSIS (Tables)	6 Months Ended
	Apr. 30, 2023
Segment Reporting [Abstract]
SCHEDULE OF SEGMENT REPORTING INFORMATION	SCHEDULE OF SEGMENT REPORTING INFORMATION Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2023 Net Revenues $ 3,583,429 $ 1,718,080 $ - $ 5,301,509 Cost of Revenues 885,382 792,886 - 1,678,268 Gross Profit 2,698,047 925,194 - 3,623,241 Research & Development 518,405 7,534 - 525,939 Selling, General & Administrative 877,961 655,739 708,494 2,242,194 Total Operating Expenses 1,396,366 663,273 708,494 2,768,133 Income (Loss) from Operations 1,301,681 261,921 (708,494 ) 855,108 Other Income Other Income 149,907 23,469 - 173,376 Interest Expense Total Other Income 149,907 23,469 - 173,376 Income (Loss) before Income Taxes 1,451,588 285,390 (708,494 ) 1,028,484 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (108,712 ) (2,185 ) 42,124 (68,773 ) Deferred Tax (Expense) Benefit - - 48,766 48,766 Total Income Tax (Expense) Benefit (108,712 ) (2,185 ) 90,890 (20,007 ) Net Income (Loss) $ 1,342,876 $ 283,205 $ (617,604 ) $ 1,008,477 Supplemental Disclosures Total Assets $ 36,187,625 $ 13,618,065 $ 1,097,772 $ 50,903,462 Total Liabilities $ 1,665,630 $ 802,459 $ 124,632 $ 2,592,721 Revenues from Intercompany Sales - eliminated from sales above $ 2,084,321 $ 169,811 $ (80,000 ) $ 2,174,132 Depreciation and Amortization $ 143,565 $ 24,757 $ 10,441 $ 178,763 Purchases of Long-lived Assets $ 64,191 $ 18,012 $ 36,246 $ 118,448 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Three Months Ended April 30, 2022 Net Revenues $ 3,491,009 $ 1,493,829 $ - $ 4,984,838 Cost of Revenues 816,033 1,137,099 - 1,953,132 Gross Profit 2,674,976 356,730 - 3,031,706 Research & Development 617,246 (99,868 ) - 517,378 Selling, General & Administrative 569,451 683,612 780,053 2,033,116 Total Operating Expenses 1,186,697 583,744 780,053 2,550,494 Income (Loss) from Operations 1,488,279 (227,014 ) (780,053 ) 481,212 Other Income (Expense) Other Income 9,055 4,098 1,344 14,497 Interest Expense (2,502 ) - - (2,502 ) Total Other Income 6,553 4,098 1,344 11,995 Income (Loss) before Income Taxes 1,494,832 (222,916 ) (778,709 ) 493,207 Income Tax (Expense) Benefit Current Tax (Expense) Benefit 279 146,890 (38,019 ) 109,150 Deferred Tax (Expense) Benefit (1,926 ) (45,184 ) 56,056 8,946 Total Income Tax (Expense) Benefit (1,647 ) 101,706 18,037 118,096 Net Income (Loss) $ 1,493,185 $ (121,210 ) $ (760,672 ) $ 611,303 Supplemental Disclosures Total Assets $ 30,503,346 $ 13,541,238 $ 818,060 $ 44,862,644 Total Liabilities $ 2,255,971 $ 616,133 $ 447,774 $ 3,319,878 Revenues from Intercompany Sales - eliminated from sales above $ 413,654 $ 126,870 $ 607,500 $ 1,148,024 Depreciation and Amortization $ 241,469 $ 31,190 $ 9,816 $ 282,475 Purchases of Long-lived Assets $ 84,969 $ 11,049 $ 43,494 $ 139,512 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2023 Net Revenues $ 7,407,588 $ 3,490,205 $ - $ 10,897,793 Cost of Revenues 1,949,626 1,571,921 - 3,521,547 Gross Profit 5,457,962 1,918,284 - 7,376,246 Research & Development 956,713 13,684 - 970,397 Selling, General & Administrative 1,539,720 1,302,049 1,362,876 4,204,645 Total Operating Expenses 2,496,433 1,315,733 1,362,876 5,175,042 Income (Loss) from Operations 2,961,529 602,551 (1,362,876 ) 2,201,204 Other Income (Expense) Other Income 164,927 24,214 - 189,141 Total Other Income 164,927 24,214 - 189,141 Income (Loss) before Income Taxes 3,126,456 626,765 (1,362,876 ) 2,390,345 Income Tax (Expense) Benefit Current Tax (Expense) Benefit (127,585 ) (22,041 ) 80,842 (68,784 ) Deferred Tax Benefit (Expense) - - 84,773 84,773 Total Income Tax (Expense) Benefit (127,585 ) (22,041 ) 165,615 15,989 Net Income (Loss) $ 2,998,871 $ 604,724 $ (1,197,261 ) $ 2,406,334 Supplemental Disclosures Total Assets $ 36,187,625 $ 13,618,065 $ 1,097,772 $ 50,903,462 Total Liabilities $ 1,665,630 $ 802,459 $ 124,632 $ 2,592,721 Revenues from Intercompany Sales - eliminated from sales above $ 2,913,995 $ 215,518 $ 600,000 $ 3,729,513 Depreciation and Amortization $ 272,403 $ 49,667 $ 20,700 $ 342,770 Purchases of Long-lived Assets $ 143,833 $ 22,792 $ 57,731 $ 224,355 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 14 - SEGMENT ANALYSIS (Continued) Marine Technology Business (Products) Marine Engineering Business (Services) Overhead Total Six Months Ended April 30, 2022 Net Revenues $ 7,314,757 $ 3,508,289 $ - $ 10,823,046 Cost of Revenues 1,388,325 2,243,081 - 3,631,406 Gross Profit 5,926,432 1,265,208 - 7,191,640 Research & Development 1,146,621 43,647 - 1,190,268 Selling, General & Administrative 1,327,947 1,339,787 1,487,372 4,155,106 Total Operating Expenses 2,474,568 1,383,434 1,487,372 5,345,374 Income (Loss) from Operations 3,451,864 (118,226 ) (1,487,372 ) 1,846,266 Other Income (Expense) Other Income 18,104 75,043 1,344 94,491 Interest Expense (2,502 ) - (400 ) (2,902 ) Total Other Income 15,602 75,043 944 91,589 Income (Loss) before Income Taxes 3,467,466 (43,183 ) (1,486,428 ) 1,937,855 Income Tax (Expense) Benefit Current Tax Benefit (Expense) (266,241 ) 170,926 (81,144 ) (176,459 ) Deferred Tax (Expense) Benefit 4,781 (44,980 ) 107,354 67,155 Total Income Tax (Expense) Benefit (261,460 ) 125,946 26,210 (109,304 ) Net Income (Loss) $ 3,206,006 $ 82,763 $ (1,460,218 ) $ 1,828,551 Supplemental Disclosures Total Assets $ 30,503,346 $ 13,541,238 $ 818,060 $ 44,862,644 Total Liabilities $ 2,255,971 $ 616,133 $ 447,774 $ 3,319,878 Revenues from Intercompany Sales - eliminated from sales above $ 803,049 $ 242,693 $ 1,207,500 $ 2,253,242 Depreciation and Amortization $ 377,127 $ 47,847 $ 18,967 $ 443,941 Purchases of Long-lived Assets $ 1,071,062 $ 12,049 $ 58,365 $ 1,141,476

DISAGGREGATION OF REVENUE (Tabl

DISAGGREGATION OF REVENUE (Tables)	6 Months Ended
	Apr. 30, 2023
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION	SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION For the Three Months Ended April 30, 2023 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 1,754,250 $ 1,144,891 $ 2,899,141 Europe 812,188 573,189 1,385,377 Australia/Asia 924,251 - 924,251 Middle East/Africa 92,740 - 92,740 Total Revenues $ 3,583,429 $ 1,718,080 $ 5,301,509 Major Goods/Service Lines Equipment Sales $ 2,500,156 $ 7,953 $ 2,508,109 Equipment Rentals 519,427 - 519,427 Software Sales 219,423 - 219,423 Engineering Parts - 1,071,906 1,071,906 Services 344,423 638,221 982,644 Total Revenues $ 3,583,429 $ 1,718,080 $ 5,301,509 Goods transferred at a point in time $ 2,719,579 $ 7,953 $ 2,727,532 Services transferred over time 863,850 1,710,127 2,573,977 Total Revenues $ 3,583,429 $ 1,718,080 $ 5,301,509 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Three Months Ended April 30, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 424,935 $ 578,244 $ 1,003,179 Europe 221,334 915,585 1,136,919 Australia/Asia 2,226,457 - 2,226,457 Middle East/Africa 618,283 - 618,283 Total Revenues $ 3,491,009 $ 1,493,829 $ 4,984,838 Major Goods/Service Lines Equipment Sales $ 2,058,137 $ 543,134 $ 2,601,271 Equipment Rentals 715,308 - 715,308 Software Sales 134,422 - 134,422 Engineering Parts - 618,335 618,335 Services 583,142 332,360 915,502 Total Revenues $ 3,491,009 $ 1,493,829 $ 4,984,838 Goods transferred at a point in time $ 2,174,910 $ 543,134 $ 2,718,044 Services transferred over time 1,316,099 950,695 2,266,794 Total Revenues $ 3,491,009 $ 1,493,829 $ 4,984,838 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Six Months Ended April 30, 2023 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 2,240,543 $ 2,467,868 $ 4,708,411 Europe 1,508,598 1,022,337 2,530,935 Australia/Asia 3,356,679 - 3,356,679 Middle East/Africa 301,768 - 301,768 Total Revenues $ 7,407,588 $ 3,490,205 $ 10,897,793 Major Goods/Service Lines Equipment Sales $ 5,072,716 $ 7,953 $ 5,080,669 Equipment Rentals 785,330 - 785,330 Software Sales 636,593 - 636,593 Engineering Parts - 2,220,985 2,220,985 Services 912,949 1,261,267 2,174,216 Total Revenues $ 7,407,588 $ 3,490,205 $ 10,897,793 Goods transferred at a point in time $ 5,709,309 $ 7,953 $ 5,717,262 Services transferred over time 1,698,279 3,482,252 5,180,531 Total Revenues $ 7,407,588 $ 3,490,205 $ 10,897,793 CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements April 30, 2023 and October 31, 2022 NOTE 15 –DISAGGREGATION OF REVENUE (Continued) For the Six Months Ended April 30, 2022 Marine Marine Technology Engineering Grand Business Business Total Disaggregation of Total Net Sales Primary Geographical Markets Americas $ 2,482,603 $ 1,782,526 $ 4,265,129 Europe 712,350 1,725,763 2,438,113 Australia/Asia 3,041,541 - 3,041,541 Middle East/Africa 1,078,263 - 1,078,263 Total Revenues $ 7,314,757 $ 3,508,289 $ 10,823,046 Major Goods/Service Lines Equipment Sales $ 4,016,982 $ 979,998 $ 4,996,980 Equipment Rentals 1,345,776 - 1,345,776 Software Sales 439,218 - 439,218 Engineering Parts - 1,918,953 1,918,953 Services 1,512,781 609,338 2,122,119 Total Revenues $ 7,314,757 $ 3,508,289 $ 10,823,046 Goods transferred at a point in time $ 4,438,551 $ 980,000 $ 5,418,551 Services transferred over time 2,876,206 2,528,289 5,404,495 Total Revenues $ 7,314,757 $ 3,508,289 $ 10,823,046

CERTIFIED DEPOSIT INTEREST BE_2

CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS (Tables)	6 Months Ended
	Apr. 30, 2023
Other Income and Expenses [Abstract]
SCHEDULE OF INTEREST RATES AND AMOUNT HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS	SCHEDULE OF INTEREST RATES AND AMOUNT HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS Currency Denomination Amount HSBC Jyske Bank USD $ 13,100,000 4.5 % GBP £ 750,000 3.77 % GBP (Unrestricted access) £ 1,585,277 4.00 % Euro € 665,000 1.3 % British Pound £ 414,000 2.65 % Danish Kroner DKK 2,850,000 0.91 % USD $ 819,000 3.41 %

COST OF REVENUES (Details Narra

COST OF REVENUES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Cost Of Revenues
Cost of revenue commissions	$ 102,452	$ 262,632	$ 607,828	$ 401,004

SCHEDULE OF COMPONENTS OF INVEN

SCHEDULE OF COMPONENTS OF INVENTORY (Details) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Inventory Disclosure [Abstract]
Raw materials and parts	$ 8,568,699	$ 7,219,344
Work in progress	366,485	383,427
Finished goods	2,298,501	2,424,340
Total Inventory	$ 11,233,685	$ 10,027,111

SCHEDULE OF PROPERTY AND EQUIPM

SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Property, Plant and Equipment [Line Items]
Totals	$ 11,370,398	$ 10,537,055
Less: accumulated depreciation	(5,299,732)	(4,704,523)
Total Property and Equipment, net	6,070,666	5,832,532
Building [Member]
Property, Plant and Equipment [Line Items]
Totals	5,776,882	5,419,946
Land [Member]
Property, Plant and Equipment [Line Items]
Totals	200,000	200,000
Office Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Totals	1,702,189	1,556,030
Rental Assets [Member]
Property, Plant and Equipment [Line Items]
Totals	2,493,622	2,252,292
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Totals	$ 1,197,705	$ 1,108,787

SUMMARY OF OTHER CURRENT ASSETS

SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits	$ 24,647	$ 18,631
Other Tax Receivables	214,274	151,217
Employee Retention Credit Receivables	173,213	173,213
Other Receivables	10,236
Total Other Current Assets	$ 422,371	$ 343,061

CONTRACTS IN PROGRESS (Details

CONTRACTS IN PROGRESS (Details Narrative) - USD ($)	Apr. 30, 2023	Oct. 31, 2022
Contracts In Progress
Unbilled receivables	$ 1,099,066	$ 602,115
Deferred revenue	878,423	790,458
Deferred revenue inclusive of extended warranty options	$ 233,592	$ 229,238

CONCENTRATIONS (Details Narrati

CONCENTRATIONS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022	Oct. 31, 2022
Concentration Risk [Line Items]
Revenue	$ 5,301,509	$ 4,984,838	$ 10,897,793	$ 10,823,046
Accounts receivable	3,894,794		3,894,794		$ 2,870,600
One Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Revenue	$ 1,270,138	$ 549,134
Concentration risk, percentage	24%	11%
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	35.10%	9.30%
Accounts receivable	$ 1,365,300	$ 184,374	1,365,300	184,374
Two Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Revenue			$ 2,517,093	$ 2,374,201
Concentration risk, percentage			23.10%	22%
Two Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			38.10%	0.03%
Accounts receivable	$ 1,483,542	$ 600	$ 1,483,542	$ 600

SCHEDULE OF EARNINGS PER SHARE

SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($)	3 Months Ended				6 Months Ended
	Apr. 30, 2023	Jan. 31, 2023	Apr. 30, 2022	Jan. 31, 2022	Apr. 30, 2023	Apr. 30, 2022
NET INCOME PER SHARE:
Net Income	$ 1,008,477	$ 1,397,857	$ 611,303	$ 1,217,248	$ 2,406,334	$ 1,828,551
Basic weighted average common shares outstanding	11,010,077		10,857,673		10,970,806	10,857,429
Unused portion of options and restricted stock awards	320,677		547,834		320,677	547,834
Diluted outstanding shares	11,330,754		11,405,507		11,291,483	11,405,263
Basic	$ 0.09		$ 0.06		$ 0.22	$ 0.17
Diluted	$ 0.09		$ 0.05		$ 0.21	$ 0.16

2017 STOCK INCENTIVE PLAN (Deta

2017 STOCK INCENTIVE PLAN (Details Narrative) - USD ($)	6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Jul. 12, 2021	Dec. 06, 2017
2017 Stock Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock available for issuance	321,026
Number of restricted stock awards to purchase shares	39,000	55,181
Option vested	146,168
Restricted stock awards vested	90,073
Options forfeited	0	177,333
Share based compensation expenses	$ 378,414	$ 690,743
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Exercised		3,333
Stock Issued During Period, Shares, New Issues		1,107
2017 Stock Incentive Plan [Member] | Board of Director [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock available for issuance				913,612
2021 Stock Incentive Plan [Member] | Board of Director [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock available for issuance			1,000,000
Common stock available for issuance	1,321,026

SCHEDULE OF SEGMENT REPORTING I

SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($)	3 Months Ended				6 Months Ended
	Apr. 30, 2023	Jan. 31, 2023	Apr. 30, 2022	Jan. 31, 2022	Apr. 30, 2023	Apr. 30, 2022
Segment Reporting Information [Line Items]
Net Revenues	$ 5,301,509		$ 4,984,838		$ 10,897,793	$ 10,823,046
Cost of Revenues	1,678,268		1,953,132		3,521,547	3,631,406
Gross Profit	3,623,241		3,031,706		7,376,246	7,191,640
Research & Development	525,939		517,378		970,397	1,190,268
Selling, General & Administrative	2,242,194		2,033,116		4,204,645	4,155,106
Total Operating Expenses	2,768,133		2,550,494		5,175,042	5,345,374
INCOME FROM OPERATIONS	855,108		481,212		2,201,204	1,846,266
Other Income (Expense)
Other Income	173,376		14,497		189,141	94,491
Interest Expense			(2,502)			(2,902)
Total Other Income	173,376		11,995		189,141	91,589
INCOME BEFORE INCOME TAX EXPENSE	1,028,484		493,207		2,390,345	1,937,855
Income Tax (Expense) Benefit
Current Tax Benefit (Expense)	(68,773)		109,150		(68,784)	(176,459)
Deferred Tax (Expense) Benefit	48,766		8,946		84,773	67,155
Total Income Tax (Expense) Benefit	(20,007)		118,096		15,989	(109,304)
NET INCOME	1,008,477	$ 1,397,857	611,303	$ 1,217,248	2,406,334	1,828,551
Supplemental Disclosures
Total Assets	50,903,462				50,903,462
Total Liabilities	2,592,721				2,592,721
Segment Reporting [Member]
Segment Reporting Information [Line Items]
Net Revenues	5,301,509		4,984,838		10,897,793	10,823,046
Cost of Revenues	1,678,268		1,953,132		3,521,547	3,631,406
Gross Profit	3,623,241		3,031,706		7,376,246	7,191,640
Research & Development	525,939		517,378		970,397	1,190,268
Selling, General & Administrative	2,242,194		2,033,116		4,204,645	4,155,106
Total Operating Expenses	2,768,133		2,550,494		5,175,042	5,345,374
INCOME FROM OPERATIONS	855,108		481,212		2,201,204	1,846,266
Other Income (Expense)
Other Income	173,376		14,497		189,141	94,491
Interest Expense			(2,502)			(2,902)
Total Other Income	173,376		11,995		189,141	91,589
INCOME BEFORE INCOME TAX EXPENSE	1,028,484		493,207		2,390,345	1,937,855
Income Tax (Expense) Benefit
Current Tax Benefit (Expense)	(68,773)		109,150		(68,784)	(176,459)
Deferred Tax (Expense) Benefit	48,766		8,946		84,773	67,155
Total Income Tax (Expense) Benefit	(20,007)		118,096		15,989	(109,304)
NET INCOME	1,008,477		611,303		2,406,334	1,828,551
Supplemental Disclosures
Total Assets	50,903,462		44,862,644		50,903,462	44,862,644
Total Liabilities	2,592,721		3,319,878		2,592,721	3,319,878
Revenues from Intercompany Sales - eliminated from sales above	2,174,132		1,148,024		3,729,513	2,253,242
Depreciation and Amortization	178,763		282,475		342,770	443,941
Purchases of Long-lived Assets	118,448		139,512		224,355	1,141,476
Marine Technology Business (Products) [Member] | Segment Reporting [Member]
Segment Reporting Information [Line Items]
Net Revenues	3,583,429		3,491,009		7,407,588	7,314,757
Cost of Revenues	885,382		816,033		1,949,626	1,388,325
Gross Profit	2,698,047		2,674,976		5,457,962	5,926,432
Research & Development	518,405		617,246		956,713	1,146,621
Selling, General & Administrative	877,961		569,451		1,539,720	1,327,947
Total Operating Expenses	1,396,366		1,186,697		2,496,433	2,474,568
INCOME FROM OPERATIONS	1,301,681		1,488,279		2,961,529	3,451,864
Other Income (Expense)
Other Income	149,907		9,055		164,927	18,104
Interest Expense			(2,502)			(2,502)
Total Other Income	149,907		6,553		164,927	15,602
INCOME BEFORE INCOME TAX EXPENSE	1,451,588		1,494,832		3,126,456	3,467,466
Income Tax (Expense) Benefit
Current Tax Benefit (Expense)	(108,712)		279		(127,585)	(266,241)
Deferred Tax (Expense) Benefit			(1,926)			4,781
Total Income Tax (Expense) Benefit	(108,712)		(1,647)		(127,585)	(261,460)
NET INCOME	1,342,876		1,493,185		2,998,871	3,206,006
Supplemental Disclosures
Total Assets	36,187,625		30,503,346		36,187,625	30,503,346
Total Liabilities	1,665,630		2,255,971		1,665,630	2,255,971
Revenues from Intercompany Sales - eliminated from sales above	2,084,321		413,654		2,913,995	803,049
Depreciation and Amortization	143,565		241,469		272,403	377,127
Purchases of Long-lived Assets	64,191		84,969		143,833	1,071,062
Marine Engineering Business (Services) [Member] | Segment Reporting [Member]
Segment Reporting Information [Line Items]
Net Revenues	1,718,080		1,493,829		3,490,205	3,508,289
Cost of Revenues	792,886		1,137,099		1,571,921	2,243,081
Gross Profit	925,194		356,730		1,918,284	1,265,208
Research & Development	7,534		(99,868)		13,684	43,647
Selling, General & Administrative	655,739		683,612		1,302,049	1,339,787
Total Operating Expenses	663,273		583,744		1,315,733	1,383,434
INCOME FROM OPERATIONS	261,921		(227,014)		602,551	(118,226)
Other Income (Expense)
Other Income	23,469		4,098		24,214	75,043
Interest Expense
Total Other Income	23,469		4,098		24,214	75,043
INCOME BEFORE INCOME TAX EXPENSE	285,390		(222,916)		626,765	(43,183)
Income Tax (Expense) Benefit
Current Tax Benefit (Expense)	(2,185)		146,890		(22,041)	170,926
Deferred Tax (Expense) Benefit			(45,184)			(44,980)
Total Income Tax (Expense) Benefit	(2,185)		101,706		(22,041)	125,946
NET INCOME	283,205		(121,210)		604,724	82,763
Supplemental Disclosures
Total Assets	13,618,065		13,541,238		13,618,065	13,541,238
Total Liabilities	802,459		616,133		802,459	616,133
Revenues from Intercompany Sales - eliminated from sales above	169,811		126,870		215,518	242,693
Depreciation and Amortization	24,757		31,190		49,667	47,847
Purchases of Long-lived Assets	18,012		11,049		22,792	12,049
Overhead [Member] | Segment Reporting [Member]
Segment Reporting Information [Line Items]
Net Revenues
Cost of Revenues
Gross Profit
Research & Development
Selling, General & Administrative	708,494		780,053		1,362,876	1,487,372
Total Operating Expenses	708,494		780,053		1,362,876	1,487,372
INCOME FROM OPERATIONS	(708,494)		(780,053)		(1,362,876)	(1,487,372)
Other Income (Expense)
Other Income			1,344			1,344
Interest Expense						(400)
Total Other Income			1,344			944
INCOME BEFORE INCOME TAX EXPENSE	(708,494)		(778,709)		(1,362,876)	(1,486,428)
Income Tax (Expense) Benefit
Current Tax Benefit (Expense)	42,124		(38,019)		80,842	(81,144)
Deferred Tax (Expense) Benefit	48,766		56,056		84,773	107,354
Total Income Tax (Expense) Benefit	90,890		18,037		165,615	26,210
NET INCOME	(617,604)		(760,672)		(1,197,261)	(1,460,218)
Supplemental Disclosures
Total Assets	1,097,772		818,060		1,097,772	818,060
Total Liabilities	124,632		447,774		124,632	447,774
Revenues from Intercompany Sales - eliminated from sales above	(80,000)		607,500		600,000	1,207,500
Depreciation and Amortization	10,441		9,816		20,700	18,967
Purchases of Long-lived Assets	$ 36,246		$ 43,494		$ 57,731	$ 58,365

SCHEDULE OF DISAGGREGATE OF REV

SCHEDULE OF DISAGGREGATE OF REVENUE FROM CONTRACTS FOR SALE WITH CUSTOMERS BY GEOGRAPHIC LOCATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Disaggregation of Revenue [Line Items]
Total Revenues	$ 5,301,509	$ 4,984,838	$ 10,897,793	$ 10,823,046
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	2,727,532	2,718,044	5,717,262	5,418,551
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	2,573,977	2,266,794	5,180,531	5,404,495
Equipment Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	2,508,109	2,601,271	5,080,669	4,996,980
Equipment Rentals [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	519,427	715,308	785,330	1,345,776
Software Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	219,423	134,422	636,593	439,218
Engineering Parts [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	1,071,906	618,335	2,220,985	1,918,953
Services [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	982,644	915,502	2,174,216	2,122,119
Marine Technology Business (Products) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	3,583,429	3,491,009	7,407,588	7,314,757
Marine Technology Business (Products) [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	2,719,579	2,174,910	5,709,309	4,438,551
Marine Technology Business (Products) [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	863,850	1,316,099	1,698,279	2,876,206
Marine Technology Business (Products) [Member] | Equipment Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	2,500,156	2,058,137	5,072,716	4,016,982
Marine Technology Business (Products) [Member] | Equipment Rentals [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	519,427	715,308	785,330	1,345,776
Marine Technology Business (Products) [Member] | Software Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	219,423	134,422	636,593	439,218
Marine Technology Business (Products) [Member] | Engineering Parts [Member]
Disaggregation of Revenue [Line Items]
Total Revenues
Marine Technology Business (Products) [Member] | Services [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	344,423	583,142	912,949	1,512,781
Marine Engineering Business (Services) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	1,718,080	1,493,829	3,490,205	3,508,289
Marine Engineering Business (Services) [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	7,953	543,134	7,953	980,000
Marine Engineering Business (Services) [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	1,710,127	950,695	3,482,252	2,528,289
Marine Engineering Business (Services) [Member] | Equipment Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	7,953	543,134	7,953	979,998
Marine Engineering Business (Services) [Member] | Equipment Rentals [Member]
Disaggregation of Revenue [Line Items]
Total Revenues
Marine Engineering Business (Services) [Member] | Software Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenues
Marine Engineering Business (Services) [Member] | Engineering Parts [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	1,071,906	618,335	2,220,985	1,918,953
Marine Engineering Business (Services) [Member] | Services [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	638,221	332,360	1,261,267	609,338
Americas [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	2,899,141	1,003,179	4,708,411	4,265,129
Americas [Member] | Marine Technology Business (Products) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	1,754,250	424,935	2,240,543	2,482,603
Americas [Member] | Marine Engineering Business (Services) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	1,144,891	578,244	2,467,868	1,782,526
Europe [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	1,385,377	1,136,919	2,530,935	2,438,113
Europe [Member] | Marine Technology Business (Products) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	812,188	221,334	1,508,598	712,350
Europe [Member] | Marine Engineering Business (Services) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	573,189	915,585	1,022,337	1,725,763
Australia/Asia [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	924,251	2,226,457	3,356,679	3,041,541
Australia/Asia [Member] | Marine Technology Business (Products) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	924,251	2,226,457	3,356,679	3,041,541
Australia/Asia [Member] | Marine Engineering Business (Services) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues
Middle East/Africa [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	92,740	618,283	301,768	1,078,263
Middle East/Africa [Member] | Marine Technology Business (Products) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	92,740	618,283	301,768	1,078,263
Middle East/Africa [Member] | Marine Engineering Business (Services) [Member]
Disaggregation of Revenue [Line Items]
Total Revenues

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	3 Months Ended		6 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Corporation tax	1.90%	23.90%	0.70%	5.60%
Effective income tax rate reconciliation, state and local income taxes, percent	25%		25%
Effective income tax rate reconciliation, tax credit, percent	0%		0%
DENMARK
Corporation tax	22%		22%

SCHEDULE OF INTEREST RATES AND

SCHEDULE OF INTEREST RATES AND AMOUNT HELD IN CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS (Details)	Apr. 30, 2023 USD ($)
HSBC [Member]
Amount	$ 13,100,000
Deposit interest rate	4.50%
HSBC [Member] | United Kingdom, Pounds
Amount	$ 750,000
Deposit interest rate	3.77%
HSBC [Member] | United Kingdom, Pounds | Unrestricted Access [Member]
Amount	$ 1,585,277
Deposit interest rate	4%
Jyske Bank [Member]
Amount	$ 819,000
Deposit interest rate	3.41%
Jyske Bank [Member] | United Kingdom, Pounds
Amount	$ 414,000
Deposit interest rate	2.65%
Jyske Bank [Member] | Euro Member Countries, Euro
Amount	$ 665,000
Deposit interest rate	1.30%
Jyske Bank [Member] | Denmark, Kroner
Amount	$ 2,850,000
Deposit interest rate	0.91%

CERTIFIED DEPOSIT INTEREST BE_3

CERTIFIED DEPOSIT INTEREST BEARING ACCOUNTS (Details Narrative)	6 Months Ended
	Apr. 30, 2023
Other Income and Expenses [Abstract]
Current rate	4%