Note 12 - Segment Reporting

6 Months Ended

Jul. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

12. Segment Reporting

As of July 31, 2025, Seamap Marine Products is the Company’s sole reporting segment.

Our Seamap Marine Products segment provides the following:

• GunLink seismic source acquisition and control systems

• BuoyLink relative global navigation satellite positioning systems

• SeaLink marine sensors and solid streamer systems 

Our Seamap Marine Products segment provides services and products, including engineering, repairs and software licensing, utilized in marine exploration, marine survey and maritime security for marine survey companies, seismic survey contractors, research institutes, non-military government organizations and operators of port facilities and other offshore installations.

Our chief operating decision maker ("CODM") is our chief executive officer. Our CODM analyzes each segment's performance using revenue and operating income. Inter-company revenue and expenses have been eliminated in the reported revenue and operating income. Our CODM considers revenue and operating income in the annual budgeting and forecasting process and analyzes these on a periodic basis when making determinations on the allocation of resources.

Financial information by business segment is set forth below net of any allocations (in thousands):

	Three Months Ended July 31,
	2025							2024
	Seamap Marine Products		Corporate Expenses			Consolidated		Seamap Marine Products		Corporate Expenses			Consolidated
Revenues	$	13,561	$	—		$	13,561	$	10,036	$	—		$	10,036
Cost of sales		6,732		—			6,732		5,258		—			5,258
Selling, general and administrative		1,629		2,008			3,637		1,599		1,185			2,784
Research and development		206		105			311		268		60			328
Depreciation and amortization expense		213		4			217		232		4			236
Operating income (loss)		4,781		(2,117	)		2,664		2,679		(1,249	)		1,430
Capital expenditures		181		1			182		80		—			80

	Six Months Ended July 31,
	2025							2024
	Seamap Marine Products		Corporate Expenses			Consolidated		Seamap Marine Products		Corporate Expenses			Consolidated
Revenues	$	21,463	$	—		$	21,463	$	19,714	$	—		$	19,714
Cost of sales		11,303		—			11,303		10,718		—			10,718
Selling, general and administrative		3,306		3,715			7,021		3,095		2,448			5,543
Research and development		508		183			691		650		140			790
Depreciation and amortization expense		433		9			442		494		9			503
Operating income (loss)		5,913		(3,907	)		2,006		4,757		(2,597	)		2,160
Capital expenditures		392		27			419		144		2			146

Corporate selling, general and administrative expense primarily includes salary and benefit costs of corporate personnel, directors’ fees, professional services, office rent, and insurance premiums.

The following table presents a reconciliation of operating income to income before income taxes (in thousands):

	Three Months Ended July 31,						Six Months Ended July 31,
	2025			2024			2025			2024
Seamap Marine Products		4,781			2,679			5,913			4,757
Corporate Expenses		(2,117	)		(1,249	)		(3,907	)		(2,597	)
Operating income		2,664			1,430			2,006			2,160
Other income		(65	)		40			(83	)		509
Income before income taxes		2,599			1,470			1,923			2,669

Total assets by business segment is set forth below (in thousands):

	As of July 31,
	2025		2024
Seamap Marine Products	$	31,353	$	36,697
Corporate		4,478		1,139
Total Assets	$	35,831	$	37,836

Depreciation and Amortization Expense

Depreciation expense on property and equipment, reflected in the table above, was approximately $72,000 and $148,000 for the three and six months ended July 31, 2025, respectively, and approximately $77,000 and $158,000 for the three and six months ended July 31, 2024, respectively. Amortization expense primarily relating to intangible assets, reflected in the table above was approximately $145,000 and $294,000 for the three and six months ended July 31, 2025, respectively, and approximately $159,000 and $345,000 for the three and six months ended  July 31, 2024, respectively. Essentially all depreciation and amortization expense relate to the Seamap Marine Products segment. Amortization in Corporate expenses relates to enterprise resource planning software.

Assets

All property and equipment is allocated to the Seamap Marine Products segment. Corporate assets primarily consist of cash, right of use assets for an operating lease, and prepaid corporate expenses. 

Geographic Operating Areas

Revenue is based on the location of our customers. See Note 4-"Revenue from Contracts with Customers" for disclosure of revenue by geographic area.