Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.10.0.1
Segment reporting
 3 Months Ended
Oct. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 9 – Segment reporting


The Company has three reportable segments: Products, Clinical Services and Therapeutics. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Therapeutics 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, which may result in settlements recognized in another segment and other general corporate matters are considered a component of the Other segment. Legal fee expense specific to other segments’ activities have been allocated to those segments.


Legal settlements, net, represent activities for which royalties would have been received in the Company’s Products segment and expenses related to an investigation within the Clinical Services segment. 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.


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


Three months ended October 31, 2018   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues     14,297       6,963       —       —       21,260  
                                         
Operating costs and expenses:                                        
Cost of revenues     10,968       3,271       —       —       14,239  
Research and development     —       507     $ 221       —       728  
Selling, general and administrative     6,060       2,924       —     $ 1,986       10,970  
Legal fee expense     36       7       —       1,258       1,301  
Total operating costs and expenses     17,064       6,709       221       3,244       27,238  
                                         
Operating income (loss)     (2,767 )     254       (221 )     (3,244 )     (5,978 )
                                         
Other income (expense):                                        
Interest     (18 )     16       —       276       274  
Other     40       4       —       3       47  
Foreign exchange loss     —       (324 )     —       —       (324 )
Loss before income taxes   $ (2,745 )   $ (50 )   $ (221 )   $ (2,965 )   $ (5,981 )
                                         
Depreciation and amortization included above   $ 403     $ 342     $ —     $ 21     $ 766  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     38     $ 24       —     $ 173       235  
Total   $ 38     $ 24     $ —     $ 173     $ 235  
                                         
Capital expenditures   $ 354     $ 52     $ —     $ —     $ 406  

Three months ended October 31, 2017   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues     19,534       7,342       —       —       26,876  
                                         
Operating costs and expenses:                                        
Cost of product revenues     12,042       3,389       —       —       15,431  
Research and development     —       523     $ 224       —       747  
Selling, general and administrative     6,095       2,628       —     $ 2,182       10,905  
Legal fee expense     13       3       —       415       431  
Total operating costs and expenses     18,150       6,543       224       2,597       27,514  
                                         
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 gain     —       (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