Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.22.0.1
Segment Reporting
 6 Months Ended
Jan. 31, 2022
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. 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 January 31, 2022   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues   $ 23,674     $ 10,372      
—
      
—
     $ 34,046  
                                         
Operating costs and expenses:                                        
Cost of revenues     12,586       5,252      
—
      
—
       17,838  
Research and development     89       711       20      
—
       820  
Selling, general and administrative     6,811       3,039      
—
       4,616       14,466  
Legal fee expense     148      
—
      
—
       2,697       2,845  
Total operating costs and expenses     19,634       9,002       20       7,313       35,969  
                                         
Operating income (loss)     4,040       1,370       (20 )     (7,313 )     (1,923 )
                                         
Other income (expense):                                        
Interest, net     (3 )     9      
—
       62       68  
Other     5       3      
—
       (358 )     (350 )
Foreign exchange loss    
—
       (450 )    
—
      
—
       (450 )
Net income (loss)   $ 4,042     $ 932     $ (20 )   $ (7,609 )   $ (2,655 )
                                         
Depreciation and amortization included above   $ 438       190      
—
       77       705  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     16       1      
—
       650       667  
Cost of revenues     12      
—
      
—
      
—
       12  
Total   $ 28       1      
—
       650       679  
                                         
Capital expenditures   $ 283       730      
—
       201       1,214  

 

Three months ended January 31, 2021   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 23,988     $ 7,478      
—
      
—
     $ 31,466  
                                         
Operating costs and expenses:                                        
Cost of revenues     11,708       3,937      
—
      
—
       15,645  
Research and development     160       633     $ 13      
—
       806  
Selling, general and administrative     6,425       2,593       16     $ 1,979       11,013  
Legal and related expenses     71       1      
—
       2,220       2,292  
Total operating costs and expenses     18,364       7,164       29       4,199       29,756  
                                         
Operating income (loss)     5,624       314       (29 )     (4,199 )     1,710  
                                         
Other income (expense):                                        
Interest     (4 )     8      
—
       (53 )     (49 )
Other     14       2      
—
      
—
       16  
Foreign exchange gain    
—
       625      
—
      
—
       625  
Net income (loss)   $ 5,634     $ 949     $ (29 )   $ (4,252 )   $ 2,302  
                                         
Depreciation and amortization included above   $ 381     $ 188     $
—
     $ 66     $ 635  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     10       16      
—
       136       162  
Cost of revenues     14      
—
      
—
      
—
       14  
Total   $ 24     $ 16     $ —     $ 136     $ 176  
                                         
Capital expenditures   $ 341     $ 154     $ —     $ 11     $ 506  

 

Six months ended January 31, 2022   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 43,415     $ 17,150      
—
      
—
     $ 60,565  
                                         
Operating costs and expenses:                                        
Cost of revenues     23,789       9,322      
—
      
—
       33,111  
Research and development     96       1,443     $ 25      
—
       1,564  
Selling, general and administrative     12,812       6,134      
—
     $ 6,572       25,518  
Legal and related expenses     205       13      
—
       3,909       4,127  
Total operating costs and expenses     36,902       16,912       25       10,481       64,320  
                                         
Operating income (loss)     6,513       238       (25 )     (10,481 )     (3,755 )
                                         
Other income (expense):                                        
Interest     (5 )     18      
—
       94       107  
Other     54       5      
—
       (554 )     (495 )
Foreign exchange (loss)             (831 )     —       —       (831 )
Net income (loss)   $ 6,562     $ (570 )   $ (25 )   $ (10,941 )   $ (4,974 )
                                         
Depreciation and amortization included above   $ 856     $ 402     $
—
     $ 148     $ 1,406  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     36       1      
—
       842       879  
Cost of revenues     16      
—
      
—
      
—
       16  
Total   $ 52     $ 1     $ —     $ 842     $ 895  
                                         
Capital expenditures   $ 593     $ 1,216     $ —     $ 438     $ 2,247  

 

Six months ended January 31, 2021   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 45,211     $ 14,910       —       —     $ 60,121  
                                         
Operating costs and expenses:                                        
Cost of revenues     24,703       7,700       —       —       32,403  
Research and development     281       1,225     $ 46       —       1,552  
Selling, general and administrative     12,523       5,038       33     $ 3,433       21,027  
Legal and related expenses     96       6       —       2,830       2,932  
Total operating costs and expenses     37,603       13,969       79       6,263       57,914  
                                         
Operating income (loss)     7,608       941       (79 )     (6,263 )     2,207  
                                         
Other income (expense):                                        
Interest     (10 )     18       —       (108 )     (100 )
Other     29       4       —       —       33  
Foreign exchange gain             461       —       —       461  
Net income (loss)   $ 7,627     $ 1,424     $ (79 )   $ (6,371 )   $ 2,601  
                                         
Depreciation and amortization included above   $ 790     $ 373     $ —     $ 132     $ 1,295  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     19       32       —       265       316  
Cost of revenues     27       —       —       —       27  
Total   $ 46     $ 32     $ —     $ 265     $ 343  
                                         
Capital expenditures   $ 881     $ 198     $ —     $ 44     $ 1,123