Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.8.0.1
Segment reporting
 3 Months Ended
Oct. 31, 2017
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 10 – 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. When recognized, legal settlements, net represents 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, 2017.


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


Three months ended October 31, 2017   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 20,334       —       —       —     $ 20,334  
Product revenues     —     $ 7,081       —       —       7,081  
Royalty and license fee income     —       261       —       —       261  
      20,334       7,342       —       —       27,676  
Operating costs and expenses:                                        
Cost of clinical laboratory services     12,042       —       —       —       12,042  
Cost of product revenues     —       3,389       —       —       3,389  
Research and development     —       523     $ 224       —       747  
Selling, general and administrative     6,095       2,614       —     $ 2,182       10,891  
Provision for uncollectible accounts receivable     800       14       —       —       814  
Legal fee expense     13       3       —       415       431  
Total operating costs and expenses     18,950       6,543       224       2,597       28,314  
                                         
Operating income (loss)     1,384       799       (224 )     (2,597 )     (638 )
                                         
Other income (expense):                                        
Interest     (25 )     12       —       170       157  
Other     14       7       —       15       36  
Foreign exchange loss     —       (195 )     —       —       (195 )
Income (loss) before income taxes   $ 1,373     $ 623     $ (224 )   $ (2,412 )   $ (640 )
                                         
Depreciation and amortization included above   $ 404     $ 326     $ —     $ 19     $ 749  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     32     $ 23       —     $ 150       205  
Total   $ 32     $ 23     $ —     $ 150     $ 205  
                                         
Capital expenditures   $ 418     $ 43     $ —     $ —     $ 461  

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       —     $ 2,596       11,494  
Provision for uncollectible accounts receivable     666       3       —       —       669  
Legal fee expense     52       12       —       308       372  
Total operating costs, expenses and legal settlements, net     17,566       6,897       195       2,904       27,562  
                                         
Operating income (loss)     992       829       (195 )     (2,904 )     (1,278 )
                                         
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 )   $ (2,822 )   $ (1,474 )
                                         
Depreciation and amortization included above   $ 401     $ 508     $ —     $ 18     $ 927  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     17     $ 11       —     $ 121       149  
Total   $ 19     $ 11     $ —     $ 121     $ 151  
                                         
Capital expenditures   $ 412     $ 102     $ —     $ —     $ 514