Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.22.2.2
Segment Reporting
3 Months Ended
Oct. 31, 2022
Segment Reporting [Abstract]  
Segment reporting

Note 11 - Segment reporting

 

The Company has two reportable segments: Clinical Services and Products. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. 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 two 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. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

 

At the beginning of fiscal 2023, we determined we would redirect our research resources and efforts to our two operating segments, Enzo Life Sciences and Enzo Clinical Labs, and as a result, Enzo Therapeutics no longer meets the criteria for being a reportable segment. The operating expenses of Enzo Therapeutics are included in the “Other” segment for all periods presented.

 

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

 

Three months ended October 31, 2022   Clinical
Services
    Products     Other     Consolidated  
Revenues   $ 11,173     $ 7,103      
    $ 18,276  
                                 
Operating costs and expenses:                                
Cost of revenues     10,082       4,589      
      14,671  
Research and development     297       690       9       996  
Selling, general and administrative     6,550       2,430       2,471       11,451  
Legal fee expense     64       25       982       1,071  
Total operating costs and expenses     16,993       7,734       3,462       28,189  
                                 
Operating loss     (5,820 )     (631 )     (3,462 )     (9,913 )
                                 
Other income (expense):                                
Interest, net     (2 )     25       47       70  
Other     5       2       (2 )     5  
Foreign exchange loss    
      (797 )    
      (797 )
Net loss   $ (5,817 )   $ (1,401 )   $ (3,417 )   $ (10,635 )
                                 
Depreciation and amortization included above   $ 532       165       83       780  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     48       20       340       408  
Cost of revenues     16       6      
      22  
Total   $ 64       26       340       430  
                                 
Capital expenditures   $ 163       306       183       652  

 

Three months ended October 31, 2021   Clinical
Services
    Products     Other     Consolidated  
Revenues   $ 19,741     $ 6,778      
    $ 26,519  
                                 
Operating costs and expenses:                                
Cost of revenues     11,203       4,070      
      15,273  
Research and development     7       732       5       744  
Selling, general and administrative     6,001       3,095       1,956       11,052  
Legal fee expense     57       13       1,212       1,282  
Total operating costs and expenses     17,268       7,910       3,173       28,351  
                                 
Operating income (loss)     2,473       (1,132 )     (3,173 )     (1,832 )
                                 
Other income (expense):                                
Interest, net     (2 )     9       32       39  
Other     49       2       (196 )     (145 )
Foreign exchange loss    
      (381 )    
      (381 )
Net income (loss)   $ 2,520     $ (1,502 )   $ (3,337 )   $ (2,319 )
                                 
Depreciation and amortization included above   $ 418       212       71       701  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     20       19       173       212  
Cost of revenues     4      
     
      4  
Total   $ 24       19       173       216  
                                 
Capital expenditures   $ 310       486       237       1,033