Annual report pursuant to Section 13 and 15(d)

Segment reporting

v3.19.3
Segment reporting
 12 Months Ended
Jul. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 16 - Segment reporting


The Company has three reportable segments: Life Sciences Products, Clinical Laboratory Services and Therapeutics. The Company’s Life Sciences Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Laboratory 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 Life Sciences Products 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:


Year ended July 31, 2019   Clinical
Laboratory
Services		     Life
Sciences
Products		     Therapeutics     Other     Consolidated  
Revenues   $ 51,115     $ 30,055     $ —     $ —     $ 81,170  
                                         
Operating costs, expenses and legal settlements, net:                                        
Cost of revenues     44,226       13,696       —       —       57,922  
Research and development     31       2,257       887       —       3,175  
Selling, general and administrative     24,230       11,860       —       8,175       44,265  
Legal fee expense     159       27       —       2,814       3,000  
Legal settlements, net     —       (28,925 )     —       —       (28,925 )
Total operating costs, expenses and legal settlements, net     68,646       (1,085 )     887       10,989       79,437  
                                         
Operating income (loss)     (17,531 )     31,140       (887 )     (10,989 )     1,733  
                                         
Other income (expense) Interest     (64 )     67       —       1,053       1,056  
Other     16       2       —       364       382  
Foreign exchange loss     —       (682 )     —       —       (682 )
Income (loss) before taxes   $ (17,579 )   $ 30,527     $ (887 )   $ (9,572 )   $ 2,489  
                                         
Depreciation and amortization included above   $ 1,625     $ 1,221     $ —     $ 190     $ 3,036  
                                         
Share-based compensation included above:                                        
                                         
Selling, general and administrative     147       95       —     $ 697       939  
Total   $ 147     $ 95     $ —     $ 697     $ 939  
                                         
Capital expenditures   $ 1,374     $ 605     $ —     $ 6,147     $ 8,126  

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


Year ended July 31, 2018   Clinical
Laboratory
Services		     Life
Sciences
Products		     Therapeutics     Other     Consolidated  
Revenues   $ 71,077     $ 29,936     $ —     $ —     $ 101,013  
                                         
Operating costs, expenses and legal settlements, net:                                        
Cost of revenues     46,008       14,377       —       —       60,385  
Research and development     —       2,305       905       —       3,210  
Selling, general and administrative     24,656       11,617       —       8,182       44,455  
Legal fee expense     67       58       —       5,002       5,127  
Total operating costs, expenses and legal settlements, net     70,731       28,357       905       13,184       113,177  
                                         
Operating income (loss)     346       1,579       (905 )     (13,184 )     (12,164 )
                                         
Other income (expense) Interest     (91 )     50       —       894       853  
Other     29       11       —       128       168  
Foreign exchange loss     —       (275 )     —       —       (275 )
Income (loss) before taxes   $ 284     $ 1,365     $ (905 )   $ (12,162 )   $ (11,418 )
                                         
Depreciation and amortization included above   $ 1,667     $ 1,387     $ —     $ 76     $ 3,130  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     125       79       —     $ 609       813  
Total   $ 125     $ 79     $ —     $ 609     $ 813  
                                         
Capital expenditures   $ 1,685     $ 203     $ —     $ —     $ 1,888  

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


Year ended July 31, 2017   Clinical
Laboratory
Services		     Life
Sciences
Products		     Therapeutics     Other     Consolidated  
Total revenues   $ 74,689     $ 30,397     $ —     $ —     $ 105,086  
                                         
Operating costs, expenses and legal settlements, net:                                        
Cost of product revenues     45,400       14,078       —       —       59,478  
Research and development     —       2,311       617       —       2,928  
Selling, general and administrative     24,465       11,289       —       8,395       44,149  
Legal fee expense     146       79       —       1,454       1,679  
Total operating costs, expenses and legal settlements, net     70,011       27,757       617       9,849       108,234  
                                         
Operating income (loss)     4,678       2,640       (617 )     (9,849 )     (3,148 )
                                         
Other income (expense)                                        
Interest     (112 )     46       —       450       384  
                                         
Other     137       (60 )     —       48       125  
Foreign exchange gain     —       135       —       —       135  
Income (loss) before taxes   $ 4,703     $ 2,761     $ (617 )   $ (9,351 )   $ (2,504 )
                                         
Depreciation and amortization included above   $ 1,586     $ 1,913     $ —     $ 99     $ 3,598  
                                         
Share-based compensation included above:                                        
Cost of clinical laboratory services   $ 6     $ —     $ —     $ —     $ 6  
Selling, general and administrative     111       74       —     $ 640       825  
Total   $ 117     $ 74     $ —     $ 640     $ 831  
                                         
Capital expenditures   $ 1,363     $ 390     $ —     $ —     $ 1,753  

Geographic financial information is as follows:


Net sales to unaffiliated customers:   2019     2018     2017  
United States   $ 72,387     $ 91,688     $ 96,751  
Switzerland     2,611       2,584       2,371  
United Kingdom     1,611       1,851       1,673  
Other international countries     4,561       4,890       4,291  
Total   $ 81,170     $ 101,013     $ 105,086  
                         

Long-lived assets at July 31,   2019     2018          
United States   $ 22,057     $ 16,210          
Switzerland     376       502          
United Kingdom     64       127          
Other international countries     96       135          
Total   $ 22,593     $ 16,974          

The Company’s reportable segments are determined based on the services they perform, the products they sell, and the royalties and license fee income they earn, not on the geographic area in which they operate. The Company’s Clinical Laboratory Services segment operates 100% in the United States with all revenue derived there. The Life Sciences Products segment earns product revenue both in the United States and foreign countries and royalty and license fee income in the United States. The following is a summary of the Life Sciences Products segment revenues attributable to customers located in the United States and foreign countries:


    2019     2018     2017  
United States   $ 21,272     $ 20,610     $ 22,062  
Foreign countries     8,783       9,326       8,335  
    $ 30,055     $ 29,936     $ 30,397