Coda Octopus Group, Inc. Goodwill & Intangibles Disclosure
NOTE 8 – GOODWILL AND IDENTIFIED INTANGIBLE ASSETS
Intangibles consisted of the following as of:
| October 31, 2025 | October 31, 2024 | ||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||
| Finite-lived | Life | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||||||
| intangible assets | (Years) | Asset | Amortization | Net | Asset | Amortization | Net | ||||||||||||||||||||
| Customer Relationships | 10 | $ | 919,503 | $ | (919,503 | ) | $ | 0 | $ | 919,503 | $ | (919,503 | ) | $ | 0 | ||||||||||||
| Non-Compete Agreements | 4 | 423,548 | (255,744 | ) | 167,804 | 423,548 | (198,911 | ) | 224,637 | ||||||||||||||||||
| Value of Technology | 7 | 2,947,155 | (426,070 | ) | 2,521,085 | 2,947,155 | 2,947,155 | ||||||||||||||||||||
| Patents | 10-15 | 845,906 | (355,207 | ) | 490,699 | 820,555 | (305,313 | ) | 515,242 | ||||||||||||||||||
| Total intangible assets | $ | 5,136,112 | $ | (1,956,524 | ) | $ | 3,179,588 | $ | 5,110,761 | $ | (1,423,727 | ) | $ | 3,687,034 | |||||||||||||
Estimated future annual amortization expenses of finite-lived assets as of October 31, 2025, is as follows:
| Years Ending October 31, | Amount | |||
| 2026 | $ | 523,996 | ||
| 2027 | 521,218 | |||
| 2028 | 521,218 | |||
| 2029 | 465,059 | |||
| 2030 | 465,059 | |||
| Thereafter | 683,038 | |||
| Totals | $ | 3,179,588 | ||
Amortization of intangible assets for the years ended October 31, 2025, and 2024 was $530,218 and $60,476 respectively, driven by the acquisition of PAL.
Goodwill consisted of the following as of:
| October 31, | October 31, | |||||||
| 2025 | 2024 | |||||||
| Coda Octopus Engineering, Inc. (US Based) | $ | 2,038,669 | $ | 2,038,669 | ||||
| Coda Octopus Products Limited (UK Based) | 62,315 | 62,315 | ||||||
| Coda Octopus Martech Limited (UK Based) | 1,281,124 | 1,281,124 | ||||||
| Precision Acoustics Limited (UK Based) | 257,226 | 257,226 | ||||||
| Total Goodwill | $ | 3,639,334 | $ | 3,639,334 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 29, 2026 | Showing above |
| 2024 | Jan 29, 2025 | |
| 2023 | Jan 29, 2024 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.