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 |
|
|