Coda Octopus Group Inc (CODA) 2023 Q2 法說會逐字稿

Good morning, and welcome to Coda Octopus Group's second-quarter fiscal year 2023 earnings conference call. My name is Christine, and I'll be your operator for today. Before this call, Coda Octopus issued its financial results for the fiscal second quarter ended April 30, 2023, including a press release, a copy of which will be furnished in a report filed with the SEC and will be available in the Investor Relations section of the company's website.

早上好，歡迎參加 Coda Octopus Group 2023 財年第二季度收益電話會議。我叫克里斯汀，今天我將擔任您的接線員。在本次電話會議之前，Coda Octopus 發布了截至 2023 年 4 月 30 日的第二財季財務業績，其中包括一份新聞稿，該新聞稿的副本將在向 SEC 提交的報告中提供，並可在《投資者關係》部分中找到。該公司的網站。

Joining us on today's call from Coda Octopus are its Chair and CEO, Annmarie Gayle; and its acting CFO, Mrs. Gayle Jardine. (Operator Instructions)

參加今天 Coda Octopus 電話會議的有其董事長兼首席執行官 Annmarie Gayle；及其代理首席財務官蓋爾賈丁夫人。 （操作員說明）

Before we begin, Jackie Keshner from the Gateway Group will make a brief introductory statement. Miss Kesher, please proceed.

在我們開始之前，Gateway Group 的 Jackie Keshner 將做簡短的介紹性發言。凱舍小姐，請繼續。

Thank you. Good morning, everyone, and welcome to Coda Octopus's second-quarter fiscal year 2023 earnings conference call. Before management begins their formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties.

謝謝。大家早上好，歡迎參加 Coda Octopus 2023 財年第二季度財報電話會議。在管理層開始正式發言之前，我們想提醒大家，我們今天發表的一些聲明可能被視為證券法下的前瞻性聲明，並涉及許多風險和不確定性。

As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission.

因此，我們提醒您，有許多因素（其中許​​多因素超出了我們的控制範圍）可能導致實際結果和事件與前瞻性陳述中描述的結果和事件存在重大差異。有關我們前瞻性陳述的更詳細的風險、不確定性和假設，請參閱我們向美國證券交易委員會提交的收益報告和公開文件中的披露內容。

We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified in our Form 10-K and Form 10-Q for the second quarter.

我們不承擔任何更新前瞻性陳述以反映前瞻性陳述做出之日後發生的情況或事件的義務或承諾，除非法律要求。我們請您參閱我們向美國證券交易委員會提交的文件，以了解我們業務的詳細披露和描述以及不確定性和其他可變情況，包括但不限於我們的表格 10-K 和表格 10-Q 中確定的風險和不確定性：第二季度。

You may get Coda Octopus's Securities and Exchange Commission's filings free by visiting the SEC website at www.sec.gov. I would also like to remind everyone that this call is being recorded and will be made available for replay via a link in the Investor Relations section of Coda Octopus's website.

您可以訪問 SEC 網站 www.sec.gov 免費獲取 Coda Octopus 向證券交易委員會提交的文件。我還想提醒大家，這次電話會議正在錄音，並將通過 Coda Octopus 網站投資者關係部分的鏈接進行重播。

Now I will turn the call over to the company's Chair and CEO, Annmarie Gayle. Annmarie?

現在我將把電話轉給公司董事長兼首席執行官安瑪麗·蓋爾 (Annmarie Gayle)。安瑪麗？

Thanks, Jackie, and good morning, everyone. Thank you for joining us for our second-quarter 2023 earnings call. As a management, we have established over many years a good track record of running a profitable and sound business. We have also spent the last four years on the development of our new generation of underwater products and solution, including our Echoscope PIPE and our Diver Augmented Vision Display System, DAVD, which underpin our growth strategy. Management's core focus is now on organically growing the business. Our current business target is growing the marine technology business this year by 22.2% to reach $18 million and growing the services business by 6.7% to reach $8 million. We have a strong balance sheet and do not envisage the requirement for new capital to fund our growth.

謝謝，傑基，大家早上好。感謝您參加我們的 2023 年第二季度財報電話會議。作為管理層，我們多年來在經營盈利和穩健的業務方面建立了良好的記錄。在過去的四年裡，我們還致力於開發新一代水下產品和解決方案，包括我們的迴聲鏡 PIPE 和潛水員增強視覺顯示系統 DAVD，它們支撐著我們的增長戰略。管理層現在的核心重點是業務的有機增長。我們當前的業務目標是今年海洋技術業務增長 22.2%，達到 1800 萬美元，服務業務增長 6.7%，達到 800 萬美元。我們擁有強大的資產負債表，預計不需要新資本來為我們的增長提供資金。

Although at the end of this quarter, we are behind on our full-year 2023 business plan financial goals, we continue to be laser-focused on our growth strategy and executing against this. Some Echoscope rental and sales projects we are working on tap on predictably slowed mainly in Asia, and therefore, in the second quarter, we did not achieve our revenue target for Echoscope solution.

儘管到本季度末，我們落後於 2023 年全年業務計劃財務目標，但我們將繼續專注於我們的增長戰略並據此執行。我們正在開發的一些 Echscope 租賃和銷售項目可預見地放緩，主要在亞洲，因此，在第二季度，我們沒有實現 Echscope 解決方案的收入目標。

I'd now like to summarize our second-quarter highlights. Within our current business strategy, the two pillars of growth for our company are our Echoscope real-time 3D imaging sonar, the new generation of Echoscope PIPE; and our recently launched diver augmented vision display system, DAVD system, which is in adoption by the US Navy. I will therefore focus my remarks on these two pillars.

現在我想總結一下我們第二季度的亮點。在我們當前的業務戰略中，我們公司的兩大增長支柱是我們的 Echoscopy 實時 3D 成像聲納，新一代 Echoscopy PIPE；我們最近推出的潛水員增強視覺顯示系統 DAVD 系統已被美國海軍採用。因此，我的發言將集中在這兩個支柱上。

Turning firstly to the Echoscope, the underwater imaging sonar market is growing largely due to the new generation of underwater vehicles focused on bringing new capabilities to the subsea and underwater markets. One of the key requirements for the defense market for these new vehicles is real-time 3D spatial perception and scene awareness technology. It is therefore our strategy to work on increasing the number of defense underwater vehicle programs, which the Echoscope technology is embedded in.

首先是迴聲鏡，水下成像聲納市場的增長主要歸功於新一代水下航行器致力於為海底和水下市場帶來新功能。國防市場對這些新車的關鍵要求之一是實時 3D 空間感知和場景感知技術。因此，我們的戰略是致力於增加嵌入迴聲鏡技術的防禦水下航行器項目的數量。

If we are successful with our strategy, this would open up long tail and recurring revenues for the business onto these programs, which is similar to the business model of our engineering business. In the second quarter, Echoscope sales were down, and this is largely due to anticipated sales in Asia territory that did not come through in the second quarter as expected.

如果我們的戰略取得成功，這將為這些計劃帶來長尾和經常性收入，這類似於我們工程業務的商業模式。第二季度，Echoscope 銷售額下降，這主要是由於第二季度亞洲地區的預期銷售額沒有達到預期。

We, however, continue to focus on our overriding strategy to increase our market share of the imaging sonar market. In this quarter, we provided support to two of the defense programs that utilize our Echoscope. These programs are now entering their customer trial phase.

然而，我們繼續專注於我們的首要戰略，以增加我們在成像聲納市場的市場份額。在本季度，我們為兩個使用我們的迴聲鏡的防禦項目提供了支持。這些計劃現已進入客戶試用階段。

Turning to DAVD, the tethered DAVD system has now moved from the Navy's R&D phase to bear field adoption phase. And in the second quarter, we sold $1 million DAVD systems, which will be distributed to new command within the Navy.

談到DAVD，系留式DAVD系統現已從海軍研發階段進入現場採用階段。第二季度，我們銷售了 100 萬美元的 DAVD 系統，這些系統將分配給海軍新的指揮部。

Within our 2023 financial year fiscal projections, we have $2 million revenue targeted for DAVD. Thus, in the second quarter, we have achieved 50% of our targeted revenues for this product. And with the opportunities we are currently pursuing, we believe we will meet our 2023 fiscal year target for the DAVD.

在我們 2023 財年的財務預測中，我們為 DAVD 設定了 200 萬美元的收入目標。因此，在第二季度，我們已經實現了該產品目標收入的 50%。憑藉我們目前正在尋求的機會，我們相信我們將實現 DAVD 的 2023 財年目標。

We continue to pivot from an R&D focus to sales and marketing and brand building. The second quarter saw us having top-quality engagements. Some of these were closed-door invitation-only events with our target markets, and we continue to raise awareness about our technology.

我們繼續從研發重點轉向銷售、營銷和品牌建設。第二季度我們實現了高質量的互動。其中一些是與我們的目標市場進行的閉門受邀活動，我們將繼續提高人們對我們技術的認識。

We participated in several events for the promotion of our products and services, including two key events, which were by invitation. Special Operations Forces Week 2023, which was hosted in partnership with United States Special Operations Command and Military Diver Training Continuum in Panama City, which had in excess of 250 military divers participating, a significant target market for the untethered version of DAVD.

我們參加了多項產品和服務推廣活動，其中包括兩次受邀參加的重要活動。 2023 年特種作戰部隊週，與美國特種作戰司令部和巴拿馬城軍事潛水員訓練連續體合作舉辦，有超過 250 名軍事潛水員參加，這是不受束縛的 DAVD 的重要目標市場。

We also showcased and presented the DAVD tethered solution at the Dutch diving regulatory body SWOD, Special Weapons Ordinance Device Exchange event in Papendrecht, Netherlands, which had a large turnout of diving companies, fire department, and the Defense Labor Inspectorate in attendance. We had successful demonstration of DAVD to the Dutch Navy in a vessel rescue penetration training facility in the Netherlands.

我們還在荷蘭潛水監管機構 SWOD、荷蘭帕彭德雷赫特舉行的特殊武器條例設備交換活動上展示並介紹了 DAVD 系留解決方案，參加活動的潛水公司、消防部門和國防勞工監察局有大量人員。我們在荷蘭的船舶救援滲透訓練設施中向荷蘭海軍成功演示了 DAVD。

We also had successful completion of DAVD trials with a major European offshore provider who is actively discussing options for adoption. We also had successful engagement and demonstration of DAVD to new market opportunities for the deep saturation diving sector and multiple nations' Special Forces untethered diving solutions.

我們還與一家主要的歐洲離岸供應商成功完成了 DAVD 試驗，該供應商正在積極討論採用方案。我們還成功參與並演示了 DAVD，為深飽和潛水領域和多個國家的特種部隊無繩潛水解決方案帶來了新的市場機會。

We successfully supported two different defense underwater vehicle programs of US prime defense contractors with their Echoscope PIPE integration in preparation for their ongoing [fee] trials with their end user customer. In the quarter, we also saw strong inquiries for rental of the DAVD solution for projects that had tainted by low visibility water condition. In the second quarter, therefore, we had solid momentum and progress around our key pillars of growth, those the DAVD and Echosope PIPE.

我們成功地支持了美國主要國防承包商的兩個不同的國防水下航行器項目，為其 Echoscopy PIPE 集成提供支持，為他們與最終用戶客戶正在進行的[收費]試驗做好準備。本季度，我們還看到對因低能見度水體狀況而受到污染的項目租賃 DAVD 解決方案的強烈詢問。因此，在第二季度，我們圍繞 DAVD 和 Echosope PIPE 等關鍵增長支柱取得了強勁的勢頭和進展。

Looking forward, we are also discussing potential adoption by a Japanese construction company, sales of evaluation system for the DAVD untethered solution, and working with US project sponsor for the full adoption of the DAVD untethered system in 2024.

展望未來，我們還在討論日本建築公司可能採用的方案、銷售 DAVD 無線解決方案的評估系統，以及與美國項目贊助商合作，爭取在 2024 年全面採用 DAVD 無線系統。

Turning to the DAVD adoption curve. DAVD is an important part of our growth strategy, and we think it is important to update the market on the likely adoption curve for this recently launched technology. The customer adoption curve for nearly all such opportunities is the same. Stage one, initial demonstration and trials to establish interest; and stage two, customers specific trials, which are designed around their workflow, typically on live operational mission; and stage three; decision on adoption and investment plan. This process can take up to two years to culminate in a decision.

轉向 DAVD 採用曲線。 DAVD 是我們增長戰略的重要組成部分，我們認為向市場通報這項最近推出的技術的可能採用曲線非常重要。幾乎所有此類機會的客戶採用曲線都是相同的。第一階段，初步論證和試驗以建立興趣；第二階段是客戶特定的試驗，圍繞他們的工作流程設計，通常是在實時操作任務中；第三階段；決定採用和投資計劃。這個過程可能需要長達兩年的時間才能最終做出決定。

To summarize where we are with some of these initiatives around the DAVD, therefore, turning firstly to DAVD tethered variant. DAVD tethered variant is an approved Navy use item and is now in the field and adopted by the US Navy. The Navy has started purchasing field assistance as distinct from R&D systems.

因此，總結一下我們在 DAVD 周圍的一些舉措的進展情況，首先轉向 DAVD 系留變體。 DAVD 系留型號是經批准的海軍使用項目，現已投入使用並被美國海軍採用。海軍已開始購買與研發系統不同的現場援助。

In this second quarter, we sold $1 million DAVD tethered systems. We're now actively marketing this variant in both the commercial and defense sectors, including extending our model to lease and rental option.

在第二季度，我們銷售了價值 100 萬美元的 DAVD 系留系統。我們現在正在商業和國防領域積極營銷這種變體，包括將我們的模型擴展到租賃和租賃選項。

Turning to DAVD untethered variant, the DAVD untethered variant is now delivered and under evaluation with project sponsors. And we expect some initial evaluation systems to be purchased for broader field assessments in the third quarter. This variant was the centerpiece of the Special Operation Forces and Military Diver Training Continuum events we attended in the quarter. Coda Octopus will continue to support the field evaluation by providing training and other technical support that may be required by the project sponsor. Interest has grown in the DAVD in new diving communities, and we are working with teams in the saturation diving community for both the US Navy and commercial European dive contractors.

談到 DAVD 無限制變體，DAVD 無限制變體現已交付並正在接受項目贊助商的評估。我們預計將在第三季度購買一些初步評估系統以進行更廣泛的現場評估。這種變體是我們本季度參加的特種作戰部隊和軍事潛水員連續訓練活動的核心。 Coda Octopus 將繼續通過提供項目發起人可能需要的培訓和其他技術支持來支持現場評估。新潛水社區對 DAVD 的興趣日益濃厚，我們正在與美國海軍和歐洲商業潛水承包商的飽和潛水社區團隊合作。

Turning now to ongoing trials and adoption discussions. We have four second stage of foreign defense agency trials scheduled in our third and fourth quarters, one European offshore service provider in third stage, and discussing investments plans, one European offshore service provider in second stage, and we have already done DAVD customization work on the technology for this service provider.

現在轉向正在進行的試驗和採用討論。我們有四家外國防務機構第二階段計劃在第三和第四季度進行試驗，一家歐洲離岸服務提供商在第三階段，正在討論投資計劃，一家歐洲離岸服務提供商在第二階段，我們已經完成了DAVD定制工作該服務提供商的技術。

We are actively discussing adoption options with one major Japanese offshore construction company, who is in -- is an established user of our Echoscope and who owns up to 15 Echoscopes within their operation. Due to their established use of our Echoscope technology, we believe the adoption process is likely to be much quicker, and we have provided commercial terms on the adoption to this customer. Turning to expansion of the business model for DAVD technology allowing market access. We also believe from recent business development efforts that we could fast track adoption through rental and lease of the DAVD technology. This will also broaden the accessibility of the technology in the marketplace. We continue to believe that the likely inflection point for the DAVD, therefore, is in financial year 2024, where we hope to have acquisition budget lines established with other customers outside of the US Navy and where the US military command has started purchasing DAVD untethered system, our biggest opportunity for the product following completion of their evaluation period.

我們正在與一家大型日本海上建築公司積極討論採用方案，該公司是我們 Echoscopy 的老用戶，並且在其運營中擁有多達 15 個 Echoscopy 。由於他們已經使用了我們的迴聲鏡技術，我們相信採用過程可能會更快，並且我們已向該客戶提供了採用的商業條款。轉向 DAVD 技術商業模式的擴展，允許市場准入。我們還相信，從最近的業務發展努力來看，我們可以通過租賃 DAVD 技術來快速採用。這也將擴大該技術在市場上的可及性。因此，我們仍然認為，DAVD 可能的拐點是在 2024 財年，我們希望與美國海軍以外的其他客戶建立採購預算線，並且美國軍事指揮部已開始採購 DAVD 無線系統，我們對產品評估期結束後的最大機會。

To conclude, therefore, we remain comfortable targeting approximately $25 million in revenue for our technology business on a standalone basis in financial year 2024. In financial year 2022, this business, that is the marine technology business had revenue of approximately $15 million. And this year, we're targeting $18 million for this business on a standalone basis, and at the same time, maintaining our profitability.

因此，總而言之，我們仍然放心地將 2024 財年技術業務的獨立收入目標定為約 2500 萬美元。在 2022 財年，該業務（即海洋技術業務）的收入約為 1500 萬美元。今年，我們的目標是這項業務的獨立收入為 1800 萬美元，同時保持我們的盈利能力。

Turning now to new products and other progress. A number of key technologies were developed as part of the DAVD system, including the digital audio communication module and the subsea edge enhanced video modules. The first of these has already been requested as a standalone product by the US Navy, and we have a purchase order to deliver the first small batch in our third quarter.

現在談談新產品和其他進展。 DAVD 系統開發了多項關鍵技術，包括數字音頻通信模塊和海底邊緣增強視頻模塊。美國海軍已要求其中第一個產品作為獨立產品，我們有一份採購訂單，將在第三季度交付第一批小批量產品。

We are also in discussions with several vehicle manufacturers for the integration of our subsea Edge Enhanced Video Modules. These technologies allow us to expand our product portfolio through discrete packaging of already developed technology to further add and diversify our market reach and revenue.

我們還與多家車輛製造商討論集成我們的海底邊緣增強視頻模塊。這些技術使我們能夠通過已開發技術的離散封裝來擴展我們的產品組合，以進一步擴大我們的市場範圍和收入並使其多樣化。

This product is also exciting for the company as the purchase process is significantly shorter due to the price point of these modules. We also believe that there is a real need to advance underwater communication systems by moving from analog communications to digital communications, which is what this new digital audio communications module is designed for. The addressable market for this, we believe, is significant, if our product meets the addressable market's brief.

該產品也令該公司興奮不已，因為這些模塊的價格點使得購買過程大大縮短。我們還認為，確實需要通過從模擬通信轉向數字通信來推進水下通信系統，這就是這款新型數字音頻通信模塊的設計目的。我們相信，如果我們的產品符合目標市場的要求，那麼該目標市場就非常重要。

Now turning to our marine engineering business, we continue to reiterate that this segment is important for our group as it has strong pedigree in defense engineering with stellar relationships with prime defense contractors spanning decades. These are important relationships for improved strategy. There is a strong crossover of engineering skills, which is vital for us to maintain our competitive lead in real-time 3D imaging sonar and our diving technology.

現在轉向我們的海洋工程業務，我們繼續重申，這一領域對我們集團來說很重要，因為它在國防工程領域擁有深厚的底蘊，並與主要國防承包商長達數十年的良好關係。這些是改進策略的重要關係。工程技能具有很強的交叉性，這對於我們保持實時 3D 成像聲納和潛水技術的競爭領先地位至關重要。

This business, that is the marine engineering business, supplies subassemblies into broader mission critical programs on the subcontract with prime defense contractors. This gives them the opportunity to have repeat orders for these subassemblies for the life of the program.

這項業務，即海洋工程業務，通過與主要國防承包商的分包合同，為更廣泛的關鍵任務項目提供組件。這使他們有機會在項目的生命週期內重複訂購這些子組件。

Within this business segment, we are navigating headwinds from supply chain issues across various defense programs. The supply chain difficulties apply not only to our own sourcing of components, but also crucially to our customers' own supply chain issues in parts of the program unrelated to us. This is resulting in the broader program design requirements being slower to lock in due to the general unavailability of components. This has led to many instances of multiple iterations of the design proposal being submitted for the same work package, which in turn has resulted in lower order intake in our first and second quarters.

在這個業務領域，我們正在應對各種國防項目供應鏈問題帶來的阻力。供應鏈的困難不僅適用於我們自己的零部件採購，而且至關重要的是，與我們無關的部分項目中客戶自己的供應鏈問題。由於組件普遍不可用，這導致更廣泛的程序設計要求的鎖定速度變慢。這導致了針對同一工作包提交設計方案多次迭代的許多情況，進而導致我們第一季度和第二季度的訂單量減少。

However, we have two new programs, which are now moving from their prototype phase into production phase, where we expect to receive purchase orders for the manufacturing of these subassemblies. We have successfully completed the environmental assessment test for one of these programs recently, and we expect to receive the manufacturing order for these in the financial year. We have also started to deliver the first of a small batch of 30-minute Thermite computers to a NATO country. This will cumulatively positively impact this business. And it's an important first step in restoring the services business to its $10 million revenue profile over the next two years.

然而，我們有兩個新計劃，目前正從原型階段進入生產階段，我們預計會收到製造這些組件的採購訂單。我們最近成功完成了其中一個項目的環境評估測試，預計在本財年收到這些項目的製造訂單。我們還開始向北約國家交付第一批小批量 30 分鐘鋁熱劑計算機。這將對這項業務產生累積的積極影響。這是在未來兩年內將服務業務恢復到 1000 萬美元收入狀況的重要的第一步。

Let me now turn the call over to our Acting CFO, Gayle Jardine, to walk you through our financials before I provide my closing remarks. Gayle?

現在讓我將電話轉給我們的代理首席財務官蓋爾·賈丁 (Gayle Jardine)，在我發表結束語之前，他將向您介紹我們的財務狀況。蓋爾？

Thank you, Annmarie, and good morning, everyone. Let me take you through our fiscal second -quarter financial results. Let's begin with revenue. In the second quarter of 2023, we recorded total revenue of $5.3 million compared to $5 million in the second quarter last year, an increase of 6.4%.

謝謝你，安娜瑪麗，大家早上好。讓我向您介紹我們第二季度的財務業績。讓我們從收入開始。 2023 年第二季度，我們的總收入為 530 萬美元，比去年第二季度的 500 萬美元增長 6.4%。

In marine technology business, generated revenue of $3.6 million compared to $3.5 million last year second quarter, a 2.6% increase. We're excited about the mix of sales, and as previously mentioned by MRV, in the second quarter, we sold $1 million of DAVD units, which is 50% of our DAVD revenue target for this financial year.

海洋技術業務營收為 360 萬美元，較去年第二季度的 350 萬美元增長 2.6%。我們對銷售組合感到興奮，正如 MRV 之前提到的，在第二季度，我們售出了 100 萬美元的 DAVD 設備，這是我們本財年 DAVD 收入目標的 50%。

Looking now at gross profit and margin. In the second quarter of 2023, we generated gross profit of $3.6 million compared to $3 million in the second quarter of fiscal 2022. Gross margin in the second quarter of 2023 was 68.3% versus 60.8% in the same year-ago period.

現在看看毛利潤和利潤率。 2023 年第二季度，我們的毛利潤為 360 萬美元，而 2022 財年第二季度為 300 萬美元。2023 年第二季度的毛利率為 68.3%，去年同期為 60.8%。

In our marine technology business or product business, gross margin fell slightly to 75.3% in the second quarter of 2023 compared to 76.6% in the prior year second quarter, reflected changes in the mix of sales. In the second quarter this year, we had more units of hardware in the mix of sales with less units of rentals and services. And marine engineering business gross margin was 53.9% versus 23.9% in the prior year second quarter. In the prior-year period, there was a high concentration of revenues from a particular low-margin project.

在我們的海洋技術業務或產品業務中，2023 年第二季度的毛利率小幅下降至 75.3%，而去年第二季度為 76.6%，反映了銷售組合的變化。今年第二季度，我們的銷售組合中硬件單位增多，而租賃和服務單位減少。海洋工程業務毛利率為 53.9%，而去年第二季度為 23.9%。上一年期間，收入高度集中於特定的低利潤項目。

Now moving to our operating expenses. Total operating expenses for the second quarter of 2023 increased 8.5% to $2.8 million compared to $2.6 million in the second quarter of 2022, driven by a 10.3% increase in selling, general, and administrative expenses due to the increase in professional fees for services such as tax and audit.

現在轉向我們的運營費用。 2023 年第二季度的總運營費用增長了 8.5%，達到 280 萬美元，而 2022 年第二季度為 260 萬美元，原因是銷售、一般和管理費用增加了 10.3%，原因是專業服務費用增加，例如如稅務和審計。

Our selling, general, and administrative costs in the second quarter of 2023 totaled $2.2 million, increasing from $2 million in the prior year second quarter. As a percentage of revenue, our selling, general, and administrative costs for the second quarter 2023 increased to 42.3% of total revenue compared to 40.8% in the second quarter of fiscal 2022.

2023 年第二季度我們的銷售、一般和管理成本總計 220 萬美元，高於去年第二季度的 200 萬美元。從占收入的百分比來看，我們 2023 年第二季度的銷售、一般和管理成本增加至總收入的 42.3%，而 2022 財年第二季度為 40.8%。

Looking forward on our cost structure, given the significant progress we've made in R&D in the last four years, we remain focused on aligning a significant portion of our resources and strategy from research and development to global business development, brand building, and investor relations. We believe we have developed world-class products and solutions that provide market-leading positions for Coda and that we can make meaningful progress in our markets through the investments to create shareholder value.

展望我們的成本結構，鑑於過去四年我們在研發方面取得的重大進展，我們仍然專注於調整我們的大部分資源和戰略，從研發到全球業務發展、品牌建設和投資者關係。我們相信，我們已經開發出世界一流的產品和解決方案，為 Coda 提供市場領先地位，並且我們可以通過投資創造股東價值，在市場上取得有意義的進展。

I'd like to focus on our operating income, which in the second quarter of 2023 was $855,000 compared to $481,000 in the second quarter of 2022. Operating margin was 16.1% compared to 9.7% in the second quarter last year.

我想重點關注我們的營業收入，2023 年第二季度的營業收入為 855,000 美元，而 2022 年第二季度為 481,000 美元。營業利潤率為 16.1%，而去年第二季度為 9.7%。

Net income before taxes in the second quarter of 2023 was $1 million compared to $493,000 in the second quarter of 2022. Net income after taxes in our second quarter 2023 was $1 million or $0.09 per diluted share compared to $611,000 or $0.05 per diluted share in the same quarter last year. Finally, looking at our balance sheet, as of April 30, 2023, we had $23.5 million in cash and cash equivalents on hand and no debt. This represents a $1.1 million cash decreased in the quarter due to the timing of our federal tax and state tax payments for the prior year, as well as prepayments for tax in this year, which totaled $1.27 million. This tax payment is also reflected in a $1 million reduction in our current liabilities. For the year to date, we have had a cash build of $0.5 million.

2023 年第二季度的稅前淨利潤為 100 萬美元，而 2022 年第二季度為 493,000 美元。2023 年第二季度的稅後淨利潤為 100 萬美元，即稀釋後每股 0.09 美元，而 2023 年第二季度的稅後淨利潤為 611,000 美元，即稀釋後每股 0.05 美元。去年同一季度。最後，看看我們的資產負債表，截至 2023 年 4 月 30 日，我們手頭有 2350 萬美元的現金和現金等價物，沒有債務。這意味著本季度現金減少了 110 萬美元，原因是我們上一年的聯邦稅和州稅繳納時間以及今年預繳的稅款總計 127 萬美元。這筆稅款還反映在我們的流動負債減少了 100 萬美元。今年迄今為止，我們已積累了 50 萬美元的現金。

That completes my financial summary. Now I will turn the call back over to Annmarie for closing remarks. Annmarie?

我的財務摘要就這樣完成了。現在我將把電話轉回給安瑪麗，讓她發表結束語。安瑪麗？

Thank you, Gayle. As stated previously, although in the second quarter, we are behind in our business plan. We are focused on executing our existing plan and growth strategy. We have significant momentum around our growth pillars. And again, our focus is converting these into tangible near-term opportunities for the business.

謝謝你，蓋爾。如前所述，儘管在第二季度，我們的業務計劃落後了。我們專注於執行現有計劃和增長戰略。我們的增長支柱擁有強大的動力。再說一遍，我們的重點是將這些轉化為近期有形的業務機會。

Management will continue its efforts to explore the rental and lease model for the DAVD with the objective of galvanizing market adoption. We also have a near-term growth catalyst from the digital audio communications module. If we're successful with this module, it will provide the company with diversification of revenue, which counterbalances the longer sales cycle of both the Echoscope and the DAVD and potentially adds a good stream of additional revenues for the company.

管理層將繼續努力探索 DAVD 的租賃模式，以促進市場採用。數字音頻通信模塊也是我們近期的增長催化劑。如果我們這個模塊取得成功，它將為公司提供多元化的收入，從而抵消迴聲鏡和 DAVD 較長的銷售週期，並有可能為公司增加大量額外收入。

We have a demonstrated track record of consistent profitability, and we have a solid unleveraged balance sheet with cash on hand and no debt, which gives us confidence in our outlook for Coda. Furthermore, with our solid balance sheet, we do not envisage needing growth capital for the growth targets we set out for the next two years. We're now happy to take your questions. Operator.

我們擁有持續盈利的良好記錄，並且擁有穩健的非槓桿資產負債表，手頭有現金且沒有債務，這讓我們對 Coda 的前景充滿信心。此外，憑藉我們穩健的資產負債表，我們預計未來兩年設定的增長目標不需要增長資本。我們現在很樂意回答您的問題。操作員。

(Operator Instructions) Brian Kinstlinger, Alliance Global Partners.

（操作員說明）Brian Kinstlinger，Alliance Global Partners。

Great. Thanks so much and thank you for all the very detailed information on your marketing and the exciting things going on. I wanted to start with your financial targets for fiscal '23, especially the $18 million for marine products. This would mark a substantial increase in demand for the second half of the year, especially with only a modest contribution, if I heard you right, which is about $1 million more for the DAVD. So first, have you seen an improvement in the Asian market? And then, whether you have or have not -- what does give you the confidence that in the second half of the year, you're going to see much stronger results compared to the first half.

偉大的。非常感謝，感謝您提供有關您的營銷和令人興奮的事情的所有非常詳細的信息。我想從你們 23 財年的財務目標開始，尤其是 1800 萬美元的海產品。這將標誌著今年下半年的需求大幅增加，尤其是在只有少量捐款的情況下，如果我沒聽錯的話，即為 DAVD 增加了約 100 萬美元。首先，您看到亞洲市場有所改善嗎？然後，無論你有沒有——是什麼讓你有信心在今年下半年，你會看到比上半年更好的結果。

Brian, hi, it's Annmarie. Thank you very much for that question. Yes, we're really off plan, as I said, and really by this time, we really should have done around $9 million, and -- but largely what we've seen, really good level of inquiries, good level of proposal writing, and good quality of opportunities that we are pursuing.

布萊恩，嗨，我是安瑪麗。非常感謝你提出這個問題。是的，正如我所說，我們確實沒有按計劃完成，而且到了這個時候，我們確實應該完成大約 900 萬美元，而且——但主要是我們所看到的，非常好的詢問水平，良好的提案撰寫水平，以及我們正在追求的優質機會。

However, what we've really seen is a slower pace of conversion from the Asian market, but nothing leads us to believe that the opportunities have gone away. We still think that's there're valid opportunities for 2023. So whilst I believe that we are definitely off plan and we've got a lot of work to do to achieve that $18 million, I really think from what I'm seeing for our business is that we still could be very close to the projections, the internal projections. Look, we have reforecasted because then we have no reason to do so. As we said, what we're seeing is slower pace of conversion, but nothing indicating that the opportunities that we are pursuing have gone away. They've just slowed, and that's not unusual. I mean, our sales cycle and quarterly sales are not necessarily linear, although within our projections, they are just for modeling purposes, linear. But really our focus is full-year revenues and believe on a full-year basis, we have no reason at this stage to reforecast that.

然而，我們真正看到的是亞洲市場的轉換速度較慢，但沒有任何證據讓我們相信機會已經消失。我們仍然認為 2023 年存在有效的機會。因此，雖然我相信我們肯定沒有按計劃完成，而且我們還有很多工作要做才能實現 1800 萬美元，但我真的認為從我所看到的我們的重要的是我們仍然可以非常接近預測，內部預測。看，我們已經重新預測了，因為那樣我們就沒有理由這樣做了。正如我們所說，我們看到的是轉換速度放緩，但沒有任何跡象表明我們正在追求的機會已經消失。他們只是放慢了速度，這並不罕見。我的意思是，我們的銷售週期和季度銷售額不一定是線性的，儘管在我們的預測中，它們只是出於建模目的，是線性的。但實際上我們的重點是全年收入，並相信在全年基礎上，我們現階段沒有理由重新預測。

Okay. And then as it relates to your two underwater vehicles in trials with the Echoscope PIPE. Is Coda's technology the only one selected for those trial phases and how long you expect a trial phase might last?

好的。然後，它與您使用迴聲鏡 PIPE 進行試驗的兩個水下航行器有關。 Coda 的技術是這些試驗階段唯一選擇的技術嗎？您預計試驗階段可能會持續多長時間？

Well, we don't know what's on the defense vehicles that are being, what are the sensors are there. We only know that our sensor is part of that solution. And I think that the two programs that we worked on this quarter, I think that they are at their advanced stage and from information we have on, if this program or trials are successful, they're likely to do a small batch in the beginning of Q1 next year. But it's subject, of course, to their trials being successful, and they continue to execute at the pace that they are currently executing.

好吧，我們不知道防御車輛上有什麼，那裡有什麼傳感器。我們只知道我們的傳感器是該解決方案的一部分。我認為我們本季度開展的兩個項目，我認為它們正處於高級階段，從我們掌握的信息來看，如果這個項目或試驗成功，他們很可能在一開始就進行小批量生產明年第一季度。但這當然取決於他們的試驗是否成功，並且他們將繼續按照目前執行的速度執行。

Right. Now last quarter, you talked about having four of these underwater vehicles in the US and one outside the US. Maybe share any detail as we've commented on two or the other three? Have they gone away? Are they still in the pipeline? There is just no update on them. Just trying to understand how that pipeline may or may not have changed.

正確的。上個季度，您談到在美國擁有四艘水下航行器，在美國境外擁有一艘。也許可以分享我們對其中兩個或其他三個評論的任何細節嗎？他們走了嗎？它們還在醞釀之中嗎？只是沒有關於它們的更新。只是想了解該管道可能會或可能不會發生變化。

No, no. The pipeline is the same. One program is in Japan and four programs in the US. In fact, one program is a commercial opportunity. They have launched their new program, and I think that we are selling into that program. So I think they've done successful trials with their underwater vehicle. And I think that they are in the process of -- I think, this will be for them the rental mode. So I think that program is alive. Our technology is part of their solution, and the other programs are ongoing. But in this quarter, I think what I tried, or the business is trying to emphasize is that the programs that we supported are advancing and moving from just their development phase into customer trial space. And we're excited about that because it's a significant move forward under the program.

不，不。管道是一樣的。一個項目在日本，四個項目在美國。事實上，一個項目就是一個商業機會。他們已經推出了新計劃，我認為我們正在銷售該計劃。所以我認為他們已經成功地對其水下航行器進行了試驗。我認為他們正在——我認為，這將是他們的租賃模式。所以我認為這個計劃還活著。我們的技術是他們解決方案的一部分，其他項目正在進行中。但在本季度，我認為我嘗試過的，或者企業試圖強調的是，我們支持的項目正在推進，並從開發階段進入客戶試用階段。我們對此感到興奮，因為這是該計劃的重大進步。

Got it. Thank you. And then my last question for now is, in the past, you've communicated -- recent past you communicated your plan to invest more in sales and marketing. I see SG&A moved up a little bit, but not a material amount, at least in my opinion. Can you talk about where you are with that piece of the plan and what you have left if you have something to invest in sales and marketing?

知道了。謝謝。我現在的最後一個問題是，在過去，您已經傳達過——最近您傳達了在銷售和營銷方面進行更多投資的計劃。我發現SG&A 略有上升，但幅度不大，至少在我看來是這樣。您能否談談該計劃的進展情況以及如果您在銷售和營銷方面需要投資的話還剩下什麼？

Yeah. So we've been doing a lot of legwork in the territories that are important to us. So Europe is really, really important, Asia is really important, and the US market too.

是的。因此，我們在對我們重要的地區進行了大量的跑腿工作。因此，歐洲非常非常重要，亞洲非常重要，美國市場也非常重要。

Let's start with Asia. Really, what we are doing in Asia is expanding our network of agents, and really what the business needs to do is to put boots on the ground to support agents and support our customers there, so the investment we're making for marketing is supporting our agents in the field with support staff in-country. And that's the model that we think will be very effective for our customers there because what our customers want to know, especially for these programs that we're working on, especially for the DAVD, that there's Coda (technical difficulty) provide support in-country.

讓我們從亞洲開始。事實上，我們在亞洲所做的就是擴大我們的代理商網絡，而企業真正需要做的是實地支持代理商並支持我們在那裡的客戶，因此我們在營銷方面的投資是支持我們在現場的代理商和國內的支持人員。我們認為這個模型對我們的客戶非常有效，因為我們的客戶想知道，特別是對於我們正在開發的這些項目，特別是對於 DAVD，有 Coda（技術難度）提供支持-國家。

So we are in the process of moving support engineers into Japan to start with and China and South Korea. So that's the first leg. And of course, as I mentioned, expanding our agent network, which means that appointing more agents, and we have done that in the last -- since this year, we've appointed a number of new agents and provided training. In fact, in June, we have quite a big team going out to China to do not just demonstrations, but extensive training under our senior hydrographic severe, we'll be there for several weeks providing support and training to our agents.

因此，我們正在將支持工程師首先轉移到日本，然後轉移到中國和韓國。這是第一站。當然，正如我提到的，擴大我們的代理商網絡，這意味著任命更多的代理商，我們去年就這樣做了——自今年以來，我們任命了一些新的代理商並提供了培訓。事實上，在六月份，我們有一個相當大的團隊前往中國，不僅進行演示，而且在我們的高級水文嚴格的指導下進行廣泛的培訓，我們將在那里呆上幾週，為我們的代理商提供支持和培訓。

So we think that the best way for the countries where we don't speak the language, the best way to support our customers like expanding our agent network and ensure that our agents are trained (technical difficulty) in-country support or the opportunities that are ongoing and also when a customer has a problem on the ground, that who the people are at hand to see this is what you need to do or the system needs to go back to base. But we feel that this is the best model for us, so that's that.

因此，我們認為對於我們不講該語言的國家/地區來說，最好的方式是支持我們的客戶，例如擴大我們的代理網絡並確保我們的代理接受培訓（技術難度）國內支持或機會正在進行中，而且當客戶在現場遇到問題時，您需要做什麼，或者係統需要返回基地，附近的人員可以看到這一點。但我們覺得這對我們來說是最好的模式，所以就是這樣。

In the US, we continue to attend a lot of significant events. We are -- although our marketing costs were down, I think that on a full-year basis, it's just timing. We will see marketing being much higher than last year because then we've got quite a lot of activities planned for the back end of the year. And in the US, we're still looking to recruit focused business development staff and that's ongoing. And similarly in Europe, we are looking for people, but they've got to be the right people with the right background. But I'm pleased to see that we're expanding our agent network at the same time and providing quite a lot of support and training for ongoing opportunities.

在美國，我們繼續參加許多重大活動。儘管我們的營銷成本有所下降，但我認為從全年來看，這只是時機。我們將看到營銷活動比去年高得多，因為我們為今年年底計劃了相當多的活動。在美國，我們仍在尋求招募專注於業務開發的員工，而且這一工作仍在進行中。同樣，在歐洲，我們正在尋找人才，但他們必須是具有合適背景的合適人選。但我很高興看到我們正在擴大我們的代理網絡，並為持續的機會提供大量支持和培訓。

Great. I would ask about DAVD, but you provided so much detail. I don't really have any questions about it. So thanks for all your time.

偉大的。我想詢問有關 DAVD 的問題，但您提供瞭如此多的細節。我對此沒有任何疑問。感謝您抽出寶貴的時間。

Thank you very much, Brian. Thank you.

非常感謝你，布萊恩。謝謝。

(Operator Instructions) Walter Ramsley, R-Squared.

（操作員說明）Walter Ramsley，R 方。

Hello, Annmarie. Thanks for all the information. I had a request, I guess. If you could elaborate a little further on the slow performance in Asia? You said the customers are dragging their feet a little bit. Is that because their own business is slowing down or what's provoking that?

你好，安瑪麗。感謝您所提供的所有信息。我想我有一個請求。您能否進一步詳細說明亞洲的緩慢表現？你說顧客有點拖沓。這是因為他們自己的業務正在放緩還是是什麼原因造成的？

While we don't have a lot of visibility as to the reason for the slow pace of conversion. What we are told that project is just move a little bit to the right, it's not gone away. So we don't have any reason to be concerned. We're in good line of communications with our agent network for the opportunities that we're pursuing. And what we are told is that they've just moved to the right, so I can't give you more color as to the reason. But what I can say is that we -- at this point, I am not alarmed because I believe it's just a question that the project is pushed out a little bit from the schedule Q2 to later on in the year.

雖然我們不太了解轉化速度緩慢的原因。我們被告知該項目只是向右移動了一點，並沒有消失。所以我們沒有任何理由擔心。我們與我們的代理網絡保持著良好的溝通，以獲取我們正在尋求的機會。我們被告知，它們剛剛向右移動，所以我無法向您提供更多關於原因的信息。但我能說的是，我們——在這一點上，我並不感到震驚，因為我相信這只是一個問題，該項目從第二季度的時間表推遲到今年晚些時候。

Okay. And as far as the Echoscopes in the military, I mean, my understanding is that the military around the world is really accelerating development of these underwater drones. Essentially, is that the case? Or are they not moving as quickly as you would like either?

好的。至於軍隊中的迴聲鏡，我的意思是，我的理解是，世界各地的軍隊確實正在加速這些水下無人機的開發。本質上是這樣嗎？或者它們的移動速度也沒有您希望的那麼快？

Well, look, the programs that we are really targeting for getting our vehicles embedded in, there's a lot of front-end work because then if you think of, they could be manufactured to the end user requirement. That will take a couple of years. The work that Coda Octopus needs to do is to be part of that front-end.

好吧，看，我們真正的目標是讓我們的車輛嵌入其中，有很多前端工作，因為如果你想到的話，它們可以根據最終用戶的要求進行製造。這將需要幾年的時間。 Coda Octopus 需要做的工作就是成為該前端的一部分。

It's a little bit like Tesla. If Tesla is to bring out a new model of vehicles, all the specification for that model is locked down. And when that vehicle is been produced and supplied to the market, it's the same specification for that model. That's what we are doing. So the program might take a couple of years. But really that is simply what happens when you've got new generation of anything. There's a prototype phase, then there's trial phase, then there is production phase. We are doing a lot of prototype of front-end work to ensure we are part of that solution.

它有點像特斯拉。如果特斯拉要推出一款新車型，該車型的所有規格都將被鎖定。當該車輛生產並供應到市場時，該型號的規格是相同的。這就是我們正在做的事情。因此該計劃可能需要幾年時間。但實際上，當你擁有新一代的產品時，就會發生這種情況。有一個原型階段，然後是試用階段，然後是生產階段。我們正在做大量的前端工作原型，以確保我們成為該解決方案的一部分。

And this is what gives us the confidence that in the future that we are going to capture more market share because we're certainly in a number of programs and it doesn't stop with the five programs that we talked about last year every year. This is our laser focus. What are the new programs that cooled off with technology can get into? And we are having lots of discussions.

這讓我們有信心，在未來我們將獲得更多的市場份額，因為我們肯定參與了許多計劃，而且不僅僅限於我們去年每年討論的五個計劃。這是我們的激光焦點。隨著技術的冷卻可以進入哪些新項目？我們正在進行很多討論。

In fact, one of the wins that we had in the US last year, and that now is now been launched to the market. And as I said, we have sold a handful of system last year, that same program has come back to us for a different program that we are now developing for a different -- it's sonar within our series of sonar. So we're getting good repeat opportunities from, first of all, doing that front end work. We are part of that solution. That solution works with them. They come back to Coda with our good and excellent track record, and then we get onto another program.

事實上，這是我們去年在美國取得的勝利之一，現在已經推向市場。正如我所說，我們去年銷售了一些系統，同一個程序又回到了我們手中，用於另一個不同的程序，我們現在正在開發一個不同的程序——它是我們系列聲納中的聲納。因此，我們首先從做前端工作中獲得了很好的重複機會。我們是該解決方案的一部分。該解決方案適用於他們。他們帶著我們良好和出色的記錄回到 Coda，然後我們開始另一個項目。

So I feel we're doing a lot of the right things. And really the impact of those right things, which are the front-end work that we're doing to be part of that story. We're going to start yielding the results, Walter, of next year and onwards. So that's really what we need to do, you know? And at the same time --

所以我覺得我們正在做很多正確的事情。這些正確的事情確實會產生影響，這些是我們正在做的前端工作，成為這個故事的一部分。沃爾特，我們將從明年起開始得出結果。所以這確實是我們需要做的，你知道嗎？與此同時——

That sounds correct. Okay. And then just one last question, these new military programs, in particular, when they do a bake-off on a new program, what's your success rate? Doing them all?

聽起來是對的。好的。最後一個問題，這些新的軍事計劃，特別是當他們對新計劃進行烘烤時，你的成功率是多少？都做嗎？

When we do a bake-off, what you mean? I'm not sure I understand what you mean.

當我們進行烘焙比賽時，你的意思是什麼？我不確定我明白你的意思。

Well, they put out a request for bid or whatever it is to get an underwater vision system so there are no secret drown. And so you have put in your proposal and two other companies put in proposals and you have a competition and what's your success rate?

好吧，他們提出了投標請求或其他任何獲得水下視覺系統的請求，這樣就不會有秘密溺水事件了。所以你已經提交了你的提案，另外兩家公司也提交了提案，你們進行了一場競爭，你們的成功率是多少？

Well, I don't know because the way it works, it's like a handful of -- I mean, most of these companies that are doing or producing underwater vehicles, the defense market will be a prime defense contractors in the US, in Japan, in South Korea, and really they really have a requirement. Already that stays.

嗯，我不知道，因為它的運作方式，就像少數——我的意思是，大多數正在製造或生產水下航行器的公司，國防市場將是美國和日本的主要國防承包商，在韓國，他們確實有一個要求。已經保留了。

And where we win is because they're looking for real-time 3D imaging sonar technology and one program knows often the code, the solution, and we are contracted, and also, where we were at the military continuum in Panama City, it was a huge swell around not just the DAVD system but the Coda Echoscope. So there's a lot of word of mouth that this is the only imaging sonar that will meet that brief for -- on imaging in real-time 3D in zero visibility water conditions.

我們獲勝的地方是因為他們正在尋找實時 3D 成像聲納技術，並且一個程序通常知道代碼、解決方案，並且我們簽訂了合同，而且，我們在巴拿馬城的軍事連續體中，它是不僅是 DAVD 系統，還有 Coda 迴聲鏡。因此，有很多人都說這是唯一一款能夠滿足零能見度水條件下實時 3D 成像要求的成像聲納。

In fact, yesterday, I saw a paper that was (inaudible) or the Coda Octopus technology around. And that paper was unequivocal that this is the most advanced sonar technology in the market and the most capable. And we just saw that yesterday. And you know, there is no -- it's not controversial that our technology is the most advanced and I think that the small number of prime defense contractors that are operating in the space, we're kind of well known.

事實上，昨天，我看到了一篇關於 Coda Octopus 技術（聽不清）的論文。該論文明確表示，這是市場上最先進、功能最強大的聲納技術。我們昨天才看到這一點。你知道，我們的技術是最先進的，這是沒有爭議的，我認為在該領域運營的少數主要國防承包商，我們是眾所周知的。

So it's not usually a competition for the sensor that you're integrating in their vehicles, it usually starts with a dialogue that they're trying to do this within what the details they can provide. And then, we answer a series of questions. And then, we provide them with data sheet. And it goes on until they reach the point where they say, okay, we would like to buy a system for our fees -- first fees. So we feel very (technical difficulty) we have the good connections with the primes, and that's not just in the US, in Japan, in South Korea, we are, for example, on a number of programs in South Korea already, and that we've started supplying -- sonars into their new vessels. So it's a small community of uses for real-time 3D imaging, and unfortunately, I mean, unfortunately rather, Coda is the show in town.

因此，這通常不是對您在車輛中集成的傳感器的競爭，通常是從對話開始，他們試圖在他們可以提供的細節範圍內做到這一點。然後，我們回答一系列問題。然後，我們向他們提供數據表。這種情況一直持續到他們說，好吧，我們想購買一個系統來支付我們的費用——首筆費用。所以我們覺得非常（技術難度）我們與素數有良好的聯繫，這不僅僅是在美國，在日本，在韓國，例如，我們已經在韓國開展了許多項目，而且我們已經開始為他們的新船提供聲納。所以這是一個實時 3D 成像用途的小社區，不幸的是，我的意思是，更不幸的是，Coda 是鎮上的秀。

Yeah. Sounds great. Thanks for answering all those questions. Congratulations.

是的。聽起來很棒。感謝您回答所有這些問題。恭喜。

Thank you very much, Walter.

非常感謝你，沃爾特。

David Wright, Henry Investment Trust.

大衛·賴特，亨利投資信託公司。

Annmarie, good morning. Thanks for having the call.

安瑪麗，早上好。感謝您的來電。

Good morning.

早上好。

Can you tell us the status of the search for a permanent CFO and whether or not you have a particular geography in mind for that CFO would be stationed?

您能否告訴我們尋找常任首席財務官的情況以及您是否考慮到該首席財務官將派駐的特定地理位置？

Thank you very much, David, for your question. Yes, that's ongoing. We've had a number of interviews. Well, the position is open, is in Edinburgh and in Orlando. And so we are having some good quality conversations at the moment. And where you think to make an appointment in the next more number of months. So that's where we are.

大衛，非常感謝你的提問。是的，這正在進行中。我們進行過多次採訪。嗯，這個職位空缺，在愛丁堡和奧蘭多。因此，我們目前正在進行一些高質量的對話。以及您認為在接下來的幾個月內進行預約的地方。這就是我們現在的情況。

But we're getting some good quality conversations. And we are hoping, as I said before, to make an appointment in a small number of months. But of course, we want to emphasize, we want to be sure it's the right candidate for Coda Octopus.

但我們正在進行一些高質量的對話。正如我之前所說，我們希望在幾個月內進行預約。但當然，我們想強調，我們希望確保它是 Coda Octopus 的合適候選者。

Okay. And just to go back into the script, I wanted to make sure I didn't misunderstand you when you were speaking right after describing the DAVD adoption curve and going through, you got to untethered and talked about what was going on with untethered. And then I thought I heard you refer to something called the saturation diving community. Did I understand the word saturation correctly?

好的。回到劇本，我想確保我沒有誤解你，當你在描述 DAVD 採用曲線並經歷之後，你必須不受束縛並談論不受束縛時發生的事情。然後我想我聽到你提到了所謂的飽和潛水社區。我對飽和這個詞的理解正確嗎？

Yes, you did, exactly. Those our new communities that are coming out of the SWOD that we -- the SWOD events we attended in Papendrecht in the Netherlands and also at the Ministry continuum in the US. We started conversations with different teams, including the deep diving saturation team. So these are new conversations that we started and for around the debit.

是的，你確實做到了。我們的新社區來自我們在荷蘭帕彭德雷赫特以及美國部連續體參加的 SWOD 活動。我們開始與不同的團隊進行對話，包括深潛飽和團隊。因此，這些是我們圍繞借方開始的新對話。

Okay. If you have another minute, could you just briefly describe what is saturation diving?

好的。如果您還有時間，您能簡單描述一下什麼是飽和潛水嗎？

Well, I probably -- it's just deeper diving where you guys in like a chamber and farming. So it just means right at the moment, we're doing more on-surface diving and we sometimes dive a little deeper at the [DAVD] belt, but the saturation diving it much deeper diving. And that's where you would have things like the diving suite. And that's really where the technology would be embedded in the diving suite.

嗯，我可能——這只是更深層次的潛水，你們就像一個房間和農場。所以這只是意味著目前我們正在進行更多的水面潛水，有時我們會在 [DAVD] 地帶潛水得更深一些，但飽和潛水則潛水得更深。那裡有潛水套房之類的東西。這正是該技術嵌入潛水服的地方。

Okay. Well, thanks for the elaborate --

好的。嗯，謝謝你的詳細介紹——

See, it's simply deeper diving.

看，這只是更深層次的潛水。

Right? I wasn't sure if it meant lots and lots of divers saturating an area.

正確的？我不確定這是否意味著大量的潛水員會淹沒某個區域。

No, no.

不，不。

So thanks for explaining.

所以謝謝你的解釋。

Very good. Well, continued good luck going forward.

非常好。好吧，繼續祝你好運。

Thank you very, very much. Thank you, David.

非常非常感謝你。謝謝你，大衛。

Thank you. We have reached the end of the question-and-answer session. Ms. Gayle, I would now like to turn the floor back over to you. Ms. Gayle, I would like to turn the floor back over to you.

謝謝。我們的問答環節已經結束。蓋爾女士，我現在想把發言權交還給您。蓋爾女士，我想把發言權交還給您。

Thank you for joining our call today and for your interest in our company. Have a great rest of your day. Operator?

感謝您今天加入我們的電話會議以及對我們公司的興趣。祝您度過愉快的一天。操作員？

Thank you for joining us. Thank you for joining us for today's Coda Octopus conference call. You may now disconnect your lines.

感謝您加入我們。感謝您參加今天的 Coda Octopus 電話會議。您現在可以斷開線路。

Thank you.

謝謝。