Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.1
Segment Reporting
 9 Months Ended
Apr. 30, 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, Clinical Services and Products, 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 April 30, 2023   Clinical
Services		     Products     Other     Consolidated  
Revenues   $ 8,622     $ 7,485      
—
     $ 16,107  
                                 
Operating costs and expenses:                                
Cost of revenues     9,993       4,476      
—
       14,469  
Research and development     91       872       12       975  
Selling, general and administrative     6,337       2,641       3,044       12,022  
Legal fee expense     21       19       4,246       4,286  
Total operating costs and expenses     16,442       8,008       7,302       31,752  
                                 
Operating loss     (7,820 )     (523 )     (7,302 )     (15,645 )
                                 
Other income (expense):                                
Interest, net     (1 )     30       (66 )     (37 )
Other     4       2       142       148  
Foreign exchange loss    
—
       347      
—
       347  
Loss before income taxes   $ (7,817 )   $ (144 )   $ (7,226 )   $ (15,187 )
                                 
Depreciation and amortization included above   $ 373       182       93       648  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     65       20       461       546  
Cost of revenues     11       6      
—
       17  
Total   $ 76       26       461       563  
                                 
Capital expenditures   $ 53       331       282       666  

 

Three months ended April 30, 2022   Clinical
Services		     Products     Other     Consolidated  
Revenues   $ 18,630     $ 7,592      
—
     $ 26,222  
                                 
Operating costs and expenses:                                
Cost of revenues     11,180       4,869      
—
       16,049  
Research and development     666       458       9       1,133  
Selling, general and administrative     6,756       2,786       1,900       11,442  
Legal fee expense     12       10       712       734  
Total operating costs and expenses     18,614       8,123       2,621       29,358  
                                 
Operating income (loss)     16       (531 )     (2,621 )     (3,136 )
                                 
Other income (expense):                                
Interest, net     (2 )     10       46       54  
Other     15       (2 )     (729 )     (716 )
Foreign exchange loss    
—
       (1,056 )    
—
       (1,056 )
Income (loss) before income taxes   $ 29     $ (1,579 )   $ (3,304 )   $ (4,854 )
                                 
Depreciation and amortization included above   $ 430       224       78       732  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     38       1       119       158  
Cost of revenues     4      
—
      
—
       4  
Total   $ 42       1       119       162  
                                 
Capital expenditures   $ 202       572       82       856  

 

Nine months ended April 30, 2023   Clinical
Services		     Products     Other     Consolidated  
Revenues   $ 28,619     $ 22,102       —     $ 50,721  
                                 
Operating costs and expenses:                                
Cost of revenues     30,538       13,681       —       44,219  
Research and development     694       2,675       33       3,402  
Selling, general and administrative     19,830       7,627       7,828       35,285  
Legal fee expense     192       55       6,105       6,352  
Total operating costs and expenses     51,254       24,038       13,966       89,258  
                                 
Operating loss     (22,635 )     (1,936 )     (13,966 )     (38,537 )
                                 
Other income (expense):                                
Interest, net     (4 )     84       15       95  
Other     16       6       256       278  
Foreign exchange loss     —       1,022       —       1,022  
Loss before income taxes   $ (22,623 )   $ (824 )   $ (13,695 )   $ (37,142 )
                                 
Depreciation and amortization included above   $ 1,291       518       267       2,076  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     179       61       1,211       1,451  
Cost of revenues     41       16       —       57  
Total   $ 220       77       1,211       1,508  
                                 
Capital expenditures   $ 412       1,269       506       2,187  

 

Nine months ended April 30, 2022   Clinical
Services		     Products     Other     Consolidated  
Revenues – Services and Products   $ 62,045     $ 24,742      
—
     $ 86,787  
                                 
Operating costs and expenses:                                
Cost of revenues     34,969       14,191      
—
       49,160  
Research and development     762       1,901       34       2,697  
Selling, general and administrative     19,568       8,920     $ 8,472       36,960  
Legal and related expenses     217       23       4,621       4,861  
Total operating costs and expenses     55,516       25,035       13,127       93,678  
                                 
Operating income (loss)     6,529       (293 )     (13,127 )     (6,891 )
                                 
Other income (expense):                                
Interest, net     (7 )     28       140       161  
Other     69       3       (1,283 )     (1,211 )
Foreign exchange (loss)             (1,887 )    
—
       (1,887 )
Net income (loss)   $ 6,591     $ (2,149 )   $ (14,270 )   $ (9,828 )
                                 
Depreciation and amortization included above   $ 1,286     $ 626     $ 226     $ 2,138  
                                 
Share-based compensation included in above:                                
Selling, general and administrative     74       2       961       1,037  
Cost of revenues     20      
—
      
—
       20  
Total   $ 94     $ 2     $ 961     $ 1,057  
                                 
Capital expenditures   $ 795     $ 1,788     $ 520     $ 3,103