Richard Deutsch's questions to Coda Octopus Group (CODA) leadership • Q3 2024
Question
Inquired about the structure of the pending acquisition (cash vs. stock), the nature of the target's business, updates on the Digital Audio product, the status of the ship scanning technology approval, and the company's sales exposure to China.
Answer
The acquisition will be all-cash (~$6.5M), but details on the target are confidential until the deal closes. Purchase orders for the Digital Audio product are expected from the Navy in September. The ship scanning solution is still undergoing trials and evaluation before broader marketing. The company generated approximately $600,000 from China in the quarter, primarily for offshore renewables, but noted increasing difficulties in selling to and sourcing from China.