Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.1
Segment Reporting
 6 Months Ended
Jan. 31, 2023
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 January 31, 2023   Clinical
Services		     Products     Other     Consolidated  
Revenues   $ 8,824     $ 7,514       —     $ 16,338  
                                 
Operating costs and expenses:                                
Cost of revenues     10,463       4,616       —       15,079  
Research and development     306       1,113       12       1,431  
Selling, general and administrative     6,943       2,556       2,313       11,812  
Legal fee expense     107       11       877       995  
Total operating costs and expenses     17,819       8,296       3,202       29,317  
                                 
Operating loss     (8,995 )     (782 )     (3,202 )     (12,979 )
                                 
Other income (expense):                                
Interest, net     (1 )     29       34       62  
Other     7       2       116       125  
Foreign exchange loss     —       1,472       —       1,472  
(Loss) income before income taxes   $ (8,989 )   $ 721     $ (3,052 )   $ (11,320 )
                                 
Depreciation and amortization included above   $ 386       171       91       648  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     65       20       409       494  
Cost of revenues     15       6       —       21  
Total   $ 80       26       409       515  
                                 
Capital expenditures   $ 196       632       41       869  

 

 

Three months ended January 31, 2022

   Clinical
Services		     Products     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       7,333       35,969  
                                 
Operating income (loss)     4,040       1,370       (7,333 )     (1,923 )
                                 
Other income (expense):                                
Interest, net     (3 )     9       62       68  
Other     5       3       (358 )     (350 )
Foreign exchange loss     —       (450 )     —       (450 )
Income (loss) before income taxes   $ 4,042     $ 932     $ (7,629 )   $ (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  

 

 

Six months ended January 31, 2023

   Clinical
Services		     Products     Other     Consolidated  
Revenues   $ 19,997     $ 14,617       —     $ 34,614  
                                 
Operating costs and expenses:                                
Cost of revenues     20,545       9,205       —       29,750  
Research and development     603       1,803       21       2,427  
Selling, general and administrative     13,493       4,986       4,784       23,263  
Legal fee expense     171       36       1,859       2,066  
Total operating costs and expenses     34,812       16,030       6,664       57,506  
                                 
Operating loss     (14,815 )     (1,413 )     (6,664 )     (22,892 )
                                 
Other income (expense):                                
Interest, net     (3 )     54       81       132  
Other     12       4       114       130  
Foreign exchange loss     —       675       —       675  
Loss before income taxes   $ (14,806 )   $ (680 )   $ (6,469 )   $ (21,955 )
                                 
Depreciation and amortization included above   $ 918       336       174       1,428  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     114       40       749       903  
Cost of revenues     31       11       —       42  
Total   $ 145       51       749       945  
                                 
Capital expenditures   $ 359       938       224       1,521  

 

Six months ended January 31, 2022   Clinical
Services		     Products     Other     Consolidated  
Revenues   $ 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 fee expense     205       13       3,909       4,127  
Total operating costs and expenses     36,902       16,912       10,506       64,320  
                                 
Operating income (loss)     6,513       238       (10,506 )     (3,755 )
                                 
Other income (expense):                                
Interest, net     (5 )     18       94       107  
Other     54       5       (554 )     (495 )
Foreign exchange loss             (831 )     —       (831 )
Income (loss) before income taxes   $ 6,562     $ (570 )   $ (10,966 )   $ (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