Coda Octopus Group, Inc.

Overview

Coda Octopus Group, Inc. is a Delaware holding company operating through three wholly owned subsidiaries across three segments:

• Marine Technology Business (Products Segment / Core Business)
• Acoustic Sensors and Materials Business (PAL)
• Defense Engineering Services Business (Services Segment)

The company's core technology focuses on underwater sensing, imaging, and diving systems, with emphasis on real-time 3D/4D/5D/6D underwater imaging and integrated diver support systems. A key milestone was the acquisition of Precision Acoustics Limited (PAL) on October 29, 2024, which expanded capabilities in acoustic sensors, calibration, and metrology.

Global footprint, people and facilities

• Operations and subsidiaries in the United States, United Kingdom, Denmark, Australia, and other regions via affiliated entities.
• Employees: approximately 100 worldwide, with about 10 in management roles.
• Properties:
  • Orlando, Florida: 3,000 sq ft corporate offices with training and light manufacturing.
  • Edinburgh, UK: 21,313 sq ft (office, R&D, training, manufacturing, warehousing) owned by Coda Octopus Products Limited.
  • Copenhagen, Denmark: 1,450 sq ft premises (lease with six-month termination notice).
  • Salt Lake City, Utah: 16,000 sq ft (manufacturing, R&D, office) owned by COEI.
  • Portland, UK (Martech): 9,890 sq ft premises (owned by Coda Octopus Products Limited) in the Marine Center, Portland.
  • Higher Bockhampton, Dorset: PAL premises, 6,501 sq ft (office, manufacturing, testing) under a long-term lease.
• Accreditations and certifications: ISO 9001:2015, Cyber Essentials Plus, ISO/IEC 17025 (PAL) for ultrasonic hydrophone calibration; additional certifications and approvals across segments.

Segments and core offerings

1) Marine Technology Business (Products Segment)

• Core focus: Real-time underwater imaging and diving technology. Proprietary technologies include the Echoscope real-time volumetric imaging sonar and the DAVD (Diver Augmented Vision Display) diving technology.
• Primary product families:
  • Real-time volumetric imaging sonars: Echoscope®, Echoscope PIPE®, Echoscope PIPE NANO Gen Series®
  • Inertial navigation and motion: GNSS-aided Inertial Measurement Systems (F280 Series)
  • Geophysical data hardware and software: DA4G®, GeoSurvey®, Survey Engine®
  • Diving and communications hardware/software: DAVD (4G USE®, 4G USE® DAVD Edition, 4G USE® DAVD FlexEdition), HUB_4, DPP (Diver Processing Pack), topside Supervisor Console
• Markets and applications: Marine geophysical surveying, offshore renewables, underwater construction, salvage, dredging, inspection, navigation of underwater hazards, port/security, robotics (AUVs/ROVs), research and education, commercial and defense diving, and underwater defense applications.
• Product trajectory:
  • Transition from earlier 3G/4G sonars to 5D/6D PIPE capabilities, enabling multiple real-time data streams (different beamforming, frequencies, outputs) from a single sensor.
  • Echoscope PIPE and 5D/6D capabilities support defense vehicle programs and SWaP optimization on underwater platforms.
  • Echoscope PIPE NANO Gen Series introduced in fiscal 2025 to address small underwater vehicles, drones, autonomous platforms, and AI-driven subsea applications.
  • DAVD shares real-time sensor data between divers and surface supervisors to improve safety and mission effectiveness; adoption is in pre-launch and early-stage deployment with defense and commercial customers.
• Programs and validation:
  • DAVD tethered variant has Authorization for Navy Use (ANU) and CE marking.
  • Untethered DAVD (DUS) underwent a Hardening Program delivered in 2024–2025, including a production order for the U.S. Navy MK16 Rebreather system and training for foreign navy sponsors.
  • A U.S. Navy joint program funded in 2024–2025 advanced DAVD readiness for SOF, EOD, Army, Coast Guard, and other agencies.
• Intellectual property:
  • Core patents cover rendering and compression of sonar data and 3D/4D imaging, including U.S. patents 10,718,865 and 10,816,652, among others with expirations through the 2030s and 2040s.
  • Exclusive license from the U.S. Navy (NSWC PCD) covers the DAVD HUD data hub concept.

2) Acoustic Sensors and Materials Business (PAL)

• Core focus: Acoustic sensors, hydrophones, transducers, materials, calibration, and measurement services.
• Capabilities and services:
  • Acoustic sensor manufacturing and customization (hydrophones, single-element transducers, etc.)
  • Calibration services for medical devices and underwater acoustics; accreditation to ISO/IEC 17025 for ultrasonic free-field sensitivity calibration
  • Automated measurement systems and passive acoustic materials
• Market applications: Medical imaging, diagnostics and therapy ultrasound, defense, subsea measurement, and R&D environments across medical, subsea, defense, universities and research institutes.
• Certifications: ISO 9001:2015; Cyber Essentials Plus; ISO/IEC 17025 (ultrasonic hydrophone calibration)
• Geography: Based in the United Kingdom
• Strategic role: Adds metrology capabilities and acoustics expertise to support defense and subsea products, improving performance, accuracy, and interoperability across the Group’s portfolio.

3) Defense Engineering Services Business (Services Segment)

• Core focus: Embedded solutions, sub-assemblies, and defense engineering services; delivers prototypes and components for integration into broader defense programs.
• Key entities:
  • Coda Octopus Engineering, Inc. (COEI) — Salt Lake City, Utah, USA
  • Coda Octopus Martech Limited (Martech) — Portland, Dorset, UK
• Business model and customers:
  • Subcontractor to prime defense contractors; services include design, prototyping, first article inspection, and production of long-tail, life-of-program components.
  • Long-standing relationships and sole/source status for certain parts into prime defense programs.
  • Notable programs and customers include Raytheon’s CIWS and Northrop Grumman’s Mine Hunting Systems (AQS-24).
• Growth and strategy:
  • Increase the number of new programs attracted annually.
  • Grow by combining engineering capabilities with product offerings to deliver end-to-end systems with installation and support.
  • Maintain presence in government contracting with pre-approval pathways for short-listing on government contracts.
• Competitive landscape: Competes with large primes and other defense contractors; success relies on long-term, mission-critical sub-assembly components and supplier reliability.

Cross-group integration

The Marine Technology Business, PAL, and Defense Engineering Services operate as an integrated capability, sharing customers, technologies, and engineering expertise. Synergies include end-to-end solutions across acquisition, processing, computation, analysis, and visualization. Defense Services provide systems integration for programs that include the Company’s sensors and software, and PAL supplies metrology and calibration support that improves measurement accuracy across products.

Growth pillars and market opportunity

• Core growth assets:
  • Echoscope real-time imaging sonar family (3D/4D/5D/6D)
  • PIPE technologies (including 5D/6D capabilities)
  • NANO Gen Series (ultra-compact, AI-enabled perception sensor for small AUVs/ROVs and autonomous platforms)
  • DAVD (Diver Augmented Vision Display) system and DAVD HUD for real-time diver-surface data exchange
• Defense market dynamics:
  • Increasing deployment of underwater vehicles (manned and unmanned) creates demand for reliable underwater vision, situational awareness, and navigation.
  • SWaP constraints drive demand for integrated sensors that consolidate multiple data streams on fewer, smarter devices.
• Recent milestones:
  • DUS untethered DAVD adoption and production orders.
  • U.S. Navy DUS Hardening Program and foreign navy collaborations.
  • Licensing and regulatory clearances (ANU for tethered DAVD; CE markings for European use).
• Growth focus:
  • Expand defense and commercial adoption of Echoscope PIPE and NANO Gen Series.
  • Apply PAL’s calibration and metrology capabilities to support higher-accuracy underwater measurements.
  • Expand Defense Engineering Services through new programs and deeper integration with product offerings.

Intellectual property

• Patent portfolio includes U.S. patents and related international filings covering:
  • Methods for constructing mathematical representations from sonar data
  • Patch tests for 3D sonar data alignment
  • Rendering and compression of sonar data, volumetric rendering, and real-time 3D object tracking
  • Pseudo-random frequency sonar ping generation
  • Head-mounted display concepts for underwater HUDs (exclusive license related to DAVD)
• Example U.S. patents referenced: 10,718,865; 10,816,652; 11,061,136; 11,204,108; 11,448,755; 11,579,288.
• Trademark portfolio includes marks such as Echoscope, Echoscope PIPE, DAVD, 4G USE, GeoSurvey, and Survey Engine.

Government regulation and compliance

• Subject to export controls and trade regulations across the U.S., U.K., Denmark, and Australia; export licensing requirements apply to international sales.
• As a supplier to U.S. government bodies, subject to DFARs, False Claims Act, cybersecurity requirements, and relevant security credentials.
• PAL and other entities hold ISO/IEC 17025 certifications and related accreditations for calibration and measurement services.

Employees and corporate information

• Employees: approximately 100 globally (about 10 in management roles).
• No collective bargaining agreements reported in the materials provided.
• Main executive offices: 3300 S. Hiawassee Rd, Orlando, FL 32835.
• Website: www.codaoctopusgroup.com (SEC filings and investor materials available via investor relations).

Revenue and contract profile

• Revenue concentration risk: approximately 20%–30% of consolidated revenues may come from a small number of defense primes.
• Contract activity includes programs with the U.S. Navy and foreign navies.

Notable customers and programs

• Defense prime engagements: Raytheon (CIWS) and Northrop Grumman (AQS-24) cited as examples for the Defense Engineering Services segment.
• DAVD and Echoscope engagements:
  • U.S. Navy: tethered DAVD variant (ANU) and DUS Hardening Program; production orders for untethered DAVD systems (e.g., MK16 Rebreather system) and foreign navy training.
  • European navy customer engagements for DAVD systems and training.