Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.20.2
Segment reporting
3 Months Ended
Oct. 31, 2020
Segment Reporting [Abstract]  
Segment reporting

Note 11 – 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. All intersegment activities are eliminated.


Legal and related expenses 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 and related expenses specific to other segments’ activities are allocated to those segments.


Legal settlements, net, represent activities for which royalties would have been received in the Company’s 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:


Three months ended October 31, 2020   Clinical
Services
    Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 21,223     $ 7,432                 $ 28,655  
                                         
Operating costs and expenses:                                        
Cost of revenues     12,995       3,763                   16,758  
Research and development     121       592     $ 33             746  
Selling, general and administrative     6,098       2,445       17     $ 1,454       10,014  
Legal and related expenses     25       5             610       640  
Total operating costs and expenses     19,239       6,805       50       2,064       28,158  
                                         
Operating income (loss)     1,984       627       (50 )     (2,064 )     497  
                                         
Other income (expense):                                        
Interest     (6 )     10             (55 )     (51 )
Other     15       2                   17  
Foreign exchange loss           (164 )                 (164 )
Net income (loss)   $ 1,993     $ 475     $ (50 )   $ (2,119 )   $ 299  
                                         
Depreciation and amortization included above   $ 409     $ 185     $     $ 66     $ 660  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     9       16             129       154  
Cost of revenues     13                         13  
Total   $ 22     $ 16     $     $ 129     $ 167  
                                         
Capital expenditures   $ 540     $ 44     $     $ 33     $ 617  

Three months ended October 31, 2019   Clinical
Services
    Products     Therapeutics     Other     Consolidated  
Revenues   $ 12,780     $ 7,427                 $ 20,207  
                                         
Operating costs and expenses:                                        
Cost of revenues     10,975       3,546                   14,521  
Research and development     350       516       188             1,054  
Selling, general and administrative     6,215       2,757             2,167       11,139  
Legal fee expense     50                   1,646       1,696  
Total operating costs and expenses     17,590       6,819       188       3,813       28,410  
                                         
Operating income (loss)     (4,810 )     608       (188 )     (3,813 )     (8,203 )
                                         
Other income (expense):                                        
Interest     (12 )     18             231       237  
Other     3       (12 )           136       127  
Foreign exchange loss           191                   191  
Net (loss) income   $ (4,819 )     805       (188 )     (3,446 )     (7,648 )
                                         
Depreciation and amortization included above   $ 409       251             65       725  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     34       22             163       219  
Total   $ 34       22             163       219  
                                         
Capital expenditures   $ 147       127                   274