Annual report pursuant to Section 13 and 15(d)

Segment reporting

v3.21.2
Segment reporting
 12 Months Ended
Jul. 31, 2021
Segment Reporting [Abstract]  
Segment reporting

Note 17 - 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 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:

 

Year ended July 31, 2021

 

    Clinical
Laboratory
Services		     Life
Sciences
Products		     Therapeutics     Other     Consolidated  
Revenues   $ 86,984     $ 30,747     $
—
     $
—
     $ 117,731  
Operating costs and expenses:                                        
Cost of revenues     48,179       15,975      
—
      
—
       64,154  
Research and development     615       2,559       78      
—
       3,252  
Selling, general and administrative     26,028       11,015       62       7,800       44,905  
Legal and related expenses     264       25      
—
       4,439       4,728  
Total operating costs and expenses     75,086       29,574       140       12,239       117,039  
                                         
Operating income (loss)     11,898       1,173       (140 )     (12,239 )     692  
                                         
Other income (expense)                                        
Interest     (17 )     37      
—
       (12 )     8  
Other     (18 )     7      
—
       6,916       6,905  
Foreign exchange gain    
—
       270      
—
      
—
       270  
Income (loss) before taxes   $ 11,863     $ 1,487     $ (140 )   $ (5,335 )   $ 7,875  
                                         
Depreciation and amortization included above   $ 1,609     $ 756     $
—
     $ 288     $ 2,653  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     33       102      
—
     $ 679       814  
Cost of sales     93      
—
      
—
      
—
       93  
Total   $ 126     $ 102     $
—
     $ 679     $ 907  
                                         
Capital expenditures   $ 3,352     $ 752     $
—
     $ 332     $ 4,436  

 

Year ended July 31, 2020

 

    Clinical
Laboratory
Services		     Life
Sciences
Products		     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 47,964     $ 26,561      
—
      
—
     $ 74,525  
Grant income     1,496      
—
      
—
      
—
       1,496  
Total     49,460       26,561      
—
      
—
       76,021  
Operating costs and expenses::                                        
Cost of revenues     38,855       13,396      
—
      
—
       52,251  
Research and development     1,509       2,190     $ 749      
—
       4,448  
Selling, general and administrative     23,533       10,485      
—
     $ 8,942       42,960  
Legal and related expenses     211       2      
—
       6,516       6,729  
Total operating costs and expenses     64,108       26,073       749       15,458       106,388  
                                         
Operating (loss) income     (14,648 )     488       (749 )     (15,458 )     (30,367 )
                                         
Other income (expense)                                        
Interest     (36 )     56      
—
       434       454  
Other     45       13      
—
       430       488  
Foreign exchange gain    
—
       905      
—
      
—
       905  
(Loss) income before taxes   $ (14,639 )   $ 1,462     $ (749 )   $ (14,594 )   $ (28,520 )
                                         
Depreciation and amortization included above   $ 1,553     $ 964      
—
     $ 263     $ 2,780  
                                         
Share-based compensation included  above:                                        
Selling, general and administrative     57       74      
—
       756       887  
Cost of sales     46      
—
      
—
      
—
       46  
Total   $ 103     $ 74      
—
     $ 756     $ 933  
                                         
Capital expenditures   $ 1,811     $ 322      
—
     $ 37     $ 2,170  

 

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 and related expenses     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  

 

Geographic financial information is as follows:

 

Net Services, Products and Grant revenues from unaffiliated customers, Year ended July 31,:   2021     2020     2019  
United States   $ 102,602     $ 64,284     $ 68,081  
Europe     10,386       7,720       8,551  
Asia Pacific     4,744       4,017       4,538  
Total   $ 117,731     $ 76,021     $ 81,170  

 

Long-lived assets, at July 31,   2021     2020  
United States   $ 41,249     $ 41,946  
Europe     52       442  
Total   $ 41,301     $ 42,388  

 

The Company’s reportable segments are determined based on the services they perform and the products they sell, 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. The following is a summary of the Life Sciences Products segment product revenues attributable to customers located in the United States and foreign countries for the years ended July 31,:

 

    2021     2020     2019  
United States   $ 15,617     $ 14,824     $ 16,966  
Foreign countries     15,130       11,737       13,089  
    $ 30,747     $ 26,561     $ 30,055