Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.5.0.2
Segment reporting
3 Months Ended
Oct. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 11 – Segment reporting


The Company has three reportable segments: Clinical Labs, Life Sciences, and Therapeutics. The Clinical Labs segment provides diagnostic services to the health care community. The Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Therapeutic segment conducts research and development activities for therapeutic drug candidates.


The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative costs which are not allocable to the three reportable segments. Legal fee expense incurred to defend the Company’s intellectual property and other general corporate matters is considered a component of the Other segment. Legal fee expense specific to other segments’ activities has been allocated to those segments. Legal settlements, net represent activities for which royalties would have been received by the Company’s Life Sciences segment had the Company had agreements in place with plaintiffs for the patents or products covered by the settlements.


Management of the Company assesses assets on a consolidated basis only and, therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies contained in the Company’s Annual Report on Form 10-K for the year ended July 31, 2016.


The following financial information represents the operating results of the reportable segments of the Company:


Three months ended October 31, 2016   Clinical
Labs
    Life
Sciences
    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 18,558                       $ 18,558  
Product revenues         $ 7,426                   7,426  
Royalty and license fee income           300                   300  
      18,558       7,726                   26,284  
Operating costs, expenses and legal settlements, net:                                        
Cost of clinical laboratory services     10,896                         10,896  
Cost of product revenues           3,309                   3,309  
Research and development           627     $ 195             822  
Selling, general and administrative     5,952       2,946           $ 2,576       11,474  
Provision for uncollectible accounts receivable     666       3                   669  
Legal fee expense     52       12             308       372  
Legal settlements, net                              
Total operating costs, expenses and legal settlements, net     17,566       6,897       195       2,884       27,542  
                                         
Operating income (loss)     992       829       (195 )     (2,884 )     (1,258 )
                                         
Other income (expense):                                        
Interest     (29 )     10             65       46  
Other     102                   17       119  
Foreign exchange loss           (361 )                 (361 )
Income (loss) before income taxes   $ 1,065     $ 478     $ (195 )   $ (2,802 )   $ (1,454 )
                                         
Depreciation and amortization included above   $ 401     $ 508     $     $ 18     $ 927  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2                       $ 2  
Research and development                              
Selling, general and administrative     17     $ 11           $ 121       149  
Total   $ 19     $ 11     $     $ 121     $ 151  
                                         
Capital expenditures   $ 412     $ 102     $     $     $ 514  

Three months ended October 31, 2015   Clinical
Labs
    Life
Sciences
    Therapeutics     Other     Consolidated  
Revenues:                              
Clinical laboratory services   $ 17,090                       $ 17,090  
Product revenues         $ 7,687                   7,687  
Royalty and license fee income           400                   400  
      17,090       8,087                   25,177  
Operating costs, expenses and legal settlements, net:                                        
Cost of clinical laboratory services     10,332                         10,332  
Cost of product revenues           3,611                   3,611  
Research and development           667     $ 200             867  
Selling, general and administrative     5,286       3,059           $ 1,880       10,225  
Provision for uncollectible accounts receivable     708       (4 )                 704  
Legal fee expense     9       (22 )           1,614       1,601  
Legal settlement, net           (6,800 )                 (6,800 )
Total operating costs, expenses and legal settlements, net     16,335       511       200       3,494       20,540  
                                         
Operating income (loss)     755       7,576       (200 )     (3,494 )     4,637  
                                         
Other income (expense):                                        
Interest     (19 )     14             (35 )     (40 )
Other     4       39             11       54  
Foreign exchange loss           (130 )                 (130 )
Income (loss) before income taxes   $ 740     $ 7,499     $ (200 )   $ (3,518 )   $ 4,521  
                                         
Depreciation and amortization included above   $ 397     $ 530     $     $ 23     $ 950  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 1                       $ 1  
Research and development         $                    
Selling, general and administrative     10       5           $ 95       110  
Total   $ 11     $ 5     $     $ 95     $ 111  
                                         
Capital expenditures   $ 437     $ 68     $     $     $ 505