Coda Octopus Group Reports Fiscal 2020 Second Quarter and First Half Year Financial Results - Seite 2

As of April 30, 2020, CODA had approximately $12.807 million of cash on hand and approximately $819,000 outstanding on its HSBC Debenture, as compared to $9.258 million of cash on hand and approximately $1.294 million outstanding on the HSBC Debenture at the same period in 2019.

Ms. Gayle continued: “We had a strong and promising start to our fiscal first quarter. However, we expect our annual results for fiscal 2020 to be negatively impacted due to the impact of the Covid-19 outbreak and the continued uncertainties associated with this pandemic. We continue to adapt our business practices, and are re-opening our business in phases, in accordance with local rules of engagement in the places in which we operate.

“Despite these challenges, in the fiscal second quarter, a number of defense programs which we consider as significant for our growth, were confirmed to proceed, including the Marine Technology Products Business’s award and funding of the second generation of the DAVD system. Our DAVD production prototype was signed off and accepted under the Cooperative Research and Development Agreement with Naval Surface Warfare Center, Panama Division for the benefit of Naval Sea Systems Command (NAVSEA), and is sponsored by the Office of Naval Research (ONR),” continued Ms. Gayle. “The first generation of the DAVD system has now been certified for fleet issue use by the US Navy and, along with a number of our Echoscope models, is included in the Authorized for Navy Use (ANU) product list. We have started receiving the first orders for the DAVD, in conjunction with our compact Echoscope C500 real-time 3D sonar. The pace of rollout of the DAVD is dependent on when the Navy operations are normalized and personnel can participate safely in sea trials.

“In addition, our defense engineering and products business is advancing a number of projects during this period. The team has made good progress on the Thermite Octal embedded, rugged computer program, which is a key pillar of our Group growth strategy. We are pleased that the Thermite Octal has passed the U.S. Military standard (Mil-Spec) acceptance, and we have delivered units into a new Foreign Airforce Program, representing the first, small-batch production quantities of this product. We remain confident that the Thermite Octal opportunity will grow. The business has also delivered two production prototype subassemblies into a new U.S. Defense program. We expect to receive the production order in the near future,” concluded Ms. Gayle.