Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.21.1
Segment reporting
 9 Months Ended
Apr. 30, 2021
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 April 30, 2021   Clinical Services     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 25,018     $ 7,779       —       —     $ 32,797  
                                         
Operating costs and expenses:                                        
Cost of revenues     12,733       4,018       —       —       16,751  
Research and development     173       643     $ 20       —       836  
Selling, general and administrative     7,029       2,810       17     $ 2,226       12,082  
Legal and related expenses     95       10       —       956       1,061  
Total operating costs and expenses     20,030       7,481       37       3,182       30,730  
                                         
Operating income (loss)     4,988       298       (37 )     (3,182 )     2,067  
                                         
Other income (expense):                                        
Interest     (4 )     11       —       53       60  
Other     1       2       —       (91 )     (88 )
Foreign exchange gain     —       (33 )     —       —       (33 )
Net income (loss)   $ 4,985     $ 278     $ (37 )   $ (3,220 )   $ 2,006  
                                         
Depreciation and amortization included above   $ 399     $ 208     $ —     $ 66     $ 673  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     9       41       —       208       258  
Cost of revenues     39       —       —       —       39  
Total   $ 48     $ 41     $ —     $ 208     $ 297  
                                         
Capital expenditures   $ 1,544     $ 180     $ —     $ 23     $ 1,747  

Three months ended April 30, 2020   Clinical Services     Products     Therapeutics     Other     Consolidated  
Revenues   $ 9,739     $ 6,417       —       —     $ 16,156  
Grant income     747       —       —       —       747  
Total     10,486       6,417       —       —       16,903  
                                         
Operating costs and expenses:                                        
Cost of revenues     9,133       3,345       —       —       12,478  
Research and development     395       580       188       —       1,163  
Selling, general and administrative     5,902       2,667       —       2,492       11,061  
Legal fee expense     52       —       —       1,873       1,925  
Total operating costs and expenses     15,482       6,592       188       4,365       26,627  
                                         
Operating loss     (4,996 )     (175 )     (188 )     (4,365 )     (9,724 )
                                         
Other income (expense):                                        
Interest     (7 )     11       —       83       87  
Other     1       4       —       130       135  
Foreign exchange loss     —       (358 )     —       —       (358 )
Net loss   $ (5,002 )     (518 )     (188 )     (4,152 )     (9,860 )
                                         
Depreciation and amortization included above   $ 373       278       —       66       717  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     21       14       —       172       207  
Total   $ 21       14       —       172       207  
                                         
Capital expenditures   $ 225       60       —       —       285  

Nine months ended April 30, 2021   Clinical Services     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 70,229     $ 22,689       —       —     $ 92,918  
                                         
Operating costs and expenses:                                        
Cost of revenues     37,436       11,718       —       —       49,154  
Research and development     454       1,868     $ 66       —       2,388  
Selling, general and administrative     19,552       7,848       50     $ 5,659       33,109  
Legal and related expenses     191       16       —       3,786       3,993  
Total operating costs and expenses     57,633       21,450       116       9,445       88,644  
                                         
Operating income (loss)     12,596       1,239       (116 )     (9,445 )     4,274  
                                         
Other income (expense):                                        
Interest     (14 )     29       —       (55 )     (40 )
Other     30       6       —       (91 )     (55 )
Foreign exchange gain             428       —       —       428  
Net income (loss)   $ 12,612     $ 1,702     $ (116 )   $ (9,591 )   $ 4,607  
                                         
Depreciation and amortization included above   $ 1,189     $ 581     $ —     $ 198     $ 1,968  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     28       73       —       473       574  
Cost of revenues     66       —       —       —       66  
Total   $ 94     $ 73     $ —     $ 473     $ 640  
                                         
Capital expenditures   $ 2,425     $ 378     $ —     $ 67     $ 2,870  

Nine months ended April 30, 2020   Clinical Services     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 35,032     $ 20,715       —       —     $ 55,747  
Grant income     747       —       —       —       747  
Total     35,779       20,715                       56,494  
                                         
Operating costs and expenses:                                        
Cost of revenues     30,351       10,223       —       —       40,574  
Research and development     1,118       1,599     $ 565       —       3,282  
Selling, general and administrative     18,012       7,954       —     $ 6,927       32,893  
Legal and related expenses     140       1       —       5,540       5,681  
Total operating costs and expenses     49,621       19,777       565       12,467       82,430  
                                         
Operating income (loss)     (13,842 )     938       (565 )     (12,467 )     (25,936 )
                                         
Other income (expense):                                        
Interest     (29 )     45       —       479       495  
Other     20       (1 )     —       315       334  
Foreign exchange loss     —       (88 )     —       —       (88 )
Net income (loss)   $ (13,851 )   $ 894     $ (565 )   $ (11,673 )   $ (25,195 )
                                         
Depreciation and amortization included above   $ 1,174     $ 781     $ —     $ 196     $ 2,151  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative.     88       58       —       582       728  
Total   $ 88     $ 58     $ —     $ 582     $ 728  
                                         
Capital expenditures   $ 514     $ 205     $ —     $ —     $ 719