Coda Octopus Group Reports $1.5m Order for its Diver Augment Vision Display System (DAVD) Tethered Variant for new community of users

Rhea-AI Summary

Coda Octopus Group (NASDAQ: CODA) has secured a $1.5 million order for its DAVD tethered systems bundled with Echoscope® from the US Navy. The order expands DAVD technology deployment beyond the current nine naval commands. This follows a March 2025 order for 16 DAVD Untethered Systems for Special Operations Command.

The company has achieved a significant technological advancement with its new generation Head-Up-Display (HUD), featuring a 200% increase in resolution and expanded field of view. This improved design offers better compatibility with specialized dive helmets and masks, opening opportunities in previously underutilized markets. CODA is now focusing on expanding DAVD technology adoption to foreign navies and the commercial sector.

Positive

• Secured new $1.5M order from US Navy for DAVD tethered systems
• Previous large order in March 2025 for 16 DAVD Untethered Systems
• Expanded user base beyond current nine naval commands
• New HUD features 200% resolution increase and improved compatibility
• Potential market expansion to foreign navies and commercial sector

Negative

• None.

Insights

Defense Technology and Naval Operations Specialist

CODA secures $1.5M Navy order for DAVD tethered systems, expanding military adoption and strengthening revenue pipeline beyond previous March order.

Coda Octopus has secured a significant $1.5 million order for its Diver Augmented Vision Display (DAVD) tethered systems, bundled with their proprietary Echoscope® technology. This contract represents more than just revenue—it's a strategic expansion of CODA's footprint within the US Navy's operational infrastructure.

The order has two key implications. First, it demonstrates sustained commitment from the Navy to CODA's underwater visualization technology, which has now achieved deployment across nine naval commands. Second, it follows a larger March 2025 order for 16 DAVD Untethered Systems targeting Special Operations users, indicating sequential procurement momentum.

What's particularly notable is the technology's adoption curve—the DAVD system is demonstrating classic military technology diffusion patterns, starting with specialized units before expanding to broader naval applications. The company's indication that the Special Operations community represents their "largest addressable market" suggests they've only begun to penetrate their primary revenue opportunity.

The technical upgrades mentioned—specifically the 200% increase in resolution and expanded field of view—address compatibility issues that previously limited market reach. This represents a critical breakthrough in the product development cycle that typically precedes accelerated adoption. With core technical challenges resolved under the DUS Hardening Program, CODA is positioned to pursue international naval customers and commercial applications, potentially expanding their revenue base beyond their current Department of Defense concentration.

ORLANDO, FL, May 13, 2025 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (“CODA” or the “Company”) (Nasdaq: CODA), a global market leader in 4D/5D/6D imaging sonar technology and acoustic sensors for real time subsea intelligence, today reported that its Marine Technology Business Unit received an order for DAVD tethered systems bundled with the Echoscope^® for a contract value of $1.5m which will be used by different US Navy Commands. This order represents an additional investment in the DAVD Tethered System, underscoring the U.S. Navy’s ongoing commitment to the adoption of the DAVD technology and enhancing its capabilities for subsea operations.

Blair Cunningham, CODA’s President of Technology, commented on the order:

“We are pleased to have received this order which is significant on different levels: this order confirms the continued roll out and adoption of this key technology within the US Navy and also that Echoscope PIPE^® real time 3D Volumetric Sonar is considered as an important part of the DAVD solution for diving and underwater inspection and surveys. The DAVD Tethered System is currently operational across nine naval commands within the U.S. Navy and this recent order will increase the community of users, thus accelerating the adoption curve for the technology. This order builds on the order we received in March 2025 for 16 DAVD Untethered Systems (DUS), which is intended for the Special Operations Command community of users and which is the largest addressable market for the technology. These acquisitions of the technology further strengthen the shared vision for the broader adoption of the DAVD system across the Defense diving community.”

Looking ahead, Cunningham added:

“With this key development and delivery milestone achieved with the U.S. Navy, we are laser focussed on bringing on board adoptees of the DAVD technology from foreign navies and the commercial sector. The new generation Head-Up-Display (HUD) delivered to the US Navy under the existing DUS Hardening Program (which is a much more compact design boasting a 200% increase in resolution and an expanded field of view) has significantly improved compatibility with specialized dive helmets and masks, thereby unlocking new possibilities for previously underutilized markets. This accomplishment represents a major milestone in the success of the DUS Hardening Program and has helped to galvanize our discussions with foreign navies on the adoption of the DAVD technology.”

About Coda Octopus Group, Inc.

The Company, founded in 1994, is an established supplier to the Underwater/Subsea market. It supplies a range of hardware and software solutions to this market which includes key proprietary real time 4D/5D/6D imaging sonars, marketed under the name Echoscope^® and Echoscope PIPE^® addressing the underwater imaging sensor market along with new generation diving technology, Diver Augmented Vision Display (DAVD) system. The Company’s Echoscope PIPE^® sonar generates real-time 3D/4D/5D images of moving objects underwater including in zero visibility water conditions. The Echoscope^® technology is used globally for numerous applications in both the commercial offshore market and defense underwater markets. Applications for the Echoscope^® technology include complex mapping underwater, subsea intervention, subsea asset placements, salvage and recovery, search and rescue, offshore renewables cable installations and surveys, marine construction, subsea infrastructure installation, mining applications, robotics (3D Perception and Depth), breakwater construction and monitoring, decommissioning, diving applications and port and harbor security.

The recently launched new generation of diving technology, DAVD, has the potential to change the way global diving operations are performed (both in the Defense and Commercial space) because it is a fully integrated singular system for topside control and fully connected diver HUD system, allowing both the topside and diver to share a range of critical information and visualize the same underwater scene. Furthermore, the DAVD integrates the Company’s sonar technology, which allows dive operations to be performed in zero visibility conditions, a common problem that besets these operations.

The Company also includes two discrete Defense engineering businesses Coda Octopus Martech Ltd (UK based) and Coda Octopus Colmek, Inc. (US based) whose primary business model is to supply sub-assemblies into broader mission critical programs in the capacity of sub-contractors to the Prime Defense Contractors. Their scope of supply under these programs typically includes concept, design, prototype, manufacturing, and post-sale support. This gives them the opportunity to have repeat orders for these sub-assemblies through the life of these programs.

For further information, please visit http://www.codaoctopusgroup.com or contact us at coda@codaoctopusgroup.com.

Forward Looking Statement

This press release contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward‐looking statements. Those forward-looking statements include, without limitation, statements regarding the Company's expectations for the growth of the Company's operations and revenue. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, restrictions on our business operations due to the Pandemic, customer demand for our products and market prices; the outcome of our ongoing research and development efforts relating to our products including our patented real time 3D solutions; our ability to develop the sales force required to achieve our development and other examples of forward looking statement set forth in our Annual Report on Form 10-K for the year ended October 31, 2023, filed with the Securities and Exchange Commission on January 29, 2024, and the subsequently filed 10-Qs and 8-Ks. Coda Octopus Group, Inc. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Contact:

Geoff Turner
Coda Octopus Group, Inc.
1-407-768- 0988
coda.ir@codaoctopusgroup.com

FAQ

What is the value of CODA's new DAVD system order from the US Navy in May 2025?

Coda Octopus Group received a $1.5 million order for DAVD tethered systems bundled with Echoscope® from the US Navy.

How many naval commands currently use CODA's DAVD Tethered System?

The DAVD Tethered System is currently operational across nine naval commands within the U.S. Navy.

What improvements does CODA's new generation Head-Up-Display (HUD) offer?

The new HUD features a 200% increase in resolution, expanded field of view, and improved compatibility with specialized dive helmets and masks.

How many DAVD Untethered Systems did CODA sell to Special Operations Command in March 2025?

CODA received an order for 16 DAVD Untethered Systems (DUS) for the Special Operations Command in March 2025.