Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v2.4.0.8
Segment reporting
 3 Months Ended
Oct. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 12 – Segment reporting


The Company has three reportable segments: Clinical Labs, Life Sciences, and Therapeutics. The Clinical Labs segment provides diagnostic services to the health care community. The Company’s Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Company’s Therapeutic 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 fee expense incurred to defend the Company’s intellectual property and other general corporate matters are considered a component of the Other segment. Legal fee expense specific to other segments’ activities have been 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 contained in the Company’s Annual Report on Form 10-K for the year ended July 31, 2014.


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


Three months ended October 31, 2014
                             
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 15,822       —       —       —     $ 15,822  
Product revenues     —     $ 8,002       —       —       8,002  
Royalty and license fee income     —       1,000       —       —       1,000  
      15,822       9,002       —       —       24,824  
Operating expenses:                                        
Cost of clinical laboratory services     10,130       —       —       —       10,130  
Cost of product revenues     —       3,695       —       —       3,695  
Research and development     —       548     $ 243       —       791  
Selling, general and administrative     5,066       3,150       —     $ 2,069       10,285  
Provision for uncollectible accounts receivable     530       11       —       —       541  
Legal fee expense     91       1       —       2,374       2,466  
Total operating expenses     15,817       7,405       243       4,443       27,908  
                                         
Operating income (loss)     5       1,597       (243 )     (4,443 )     (3,084 )
                                         
Other income (expense)                                        
Interest     (27 )     2       —       (44 )     (69 )
Other     2       (8 )     —       25       19  
Foreign exchange loss     —       (472 )     —       —       (472 )
Income (loss) before income taxes   $ (20 )   $ 1,119     $ (243 )   $ (4,462 )   $ (3,606 )
                                         
Depreciation and amortization included above   $ 357     $ 560     $ 1     $ 20     $ 938  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 1       —       —       —     $ 1  
Research and development     —     $ 1       —       —       1  
Selling, general and administrative     9       —       —     $ 87       96  
Total   $ 10     $ 1       —     $ 87     $ 98  
                                         
Capital expenditures   $ 254     $ 10     $ —     $ —     $ 264  

Three months ended October 31, 2013                              
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 14,860       —       —       —     $ 14,860  
Product revenues     —     $ 7,663       —       —       7,663  
Royalty and license fee income     —       1,611       —       —       1,611  
      14,860       9,274       —       —       24,134  
Operating expenses:                                        
Cost of clinical laboratory services     9,709       —       —       —       9,709  
Cost of product revenues     —       3,846       —       —       3,846  
Research and development     11       526     $ 280       —       817  
Selling, general and administrative     5,050       3,495       —     $ 1,984       10,529  
Provision for uncollectible accounts receivable     844       28       —       —       872  
Legal fee expense     148       22       —       1,211       1,381  
Total operating expenses     15,762       7,917       280       3,195       27,154  
                                         
Operating income (loss)     (902 )     1,357       (280 )     (3,195 )     (3,020 )
                                         
Other income (expense)                                        
Interest     (11 )     5       —       (56 )     (62 )
Other     18       27       —       16       61  
Foreign exchange gain     —       297       —       —       297  
Income (loss) before income taxes   $ (895 )   $ 1,686     $ (280 )   $ (3,235 )   $ (2,724 )
                                         
Depreciation and amortization included above   $ 355     $ 641     $ 4     $ 25     $ 1,025  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       —       —       —     $ 2  
Research and development     —       1       —       —       1  
Selling, general and administrative     10     $ 4       —     $ 86       100  
Total   $ 12     $ 5       —     $ 86     $ 103  
                                         
Capital expenditures   $ 259     $ 75     $ —     $ —     $ 334