Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v2.4.1.9
Segment reporting
 6 Months Ended
Jan. 31, 2015
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 is considered a component of the Other segment. Legal fee expense specific to other segments’ activities has 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 January 31, 2015                      
    Clinical
Labs 		  Life
Sciences 		  Therapeutics   Other   Consolidated  
Revenues:                                
Clinical laboratory services   $ 14,725     —     —     —   $ 14,725  
Product revenues     —   $ 7,723     —     —     7,723  
Royalty and license fee income     —     644     —     —     644  
      14,725     8,367     —     —     23,092  
Operating expenses:                                
Cost of clinical laboratory services     9,246     —     —     —     9,246  
Cost of product revenues     —     3,818     —     —     3,818  
Research and development     —     635   $ 199     —     834  
Selling, general and administrative     5,089     2,704     —   $ 1,877     9,670  
Provision for uncollectible accounts receivable     658     (57 )   —     —     601  
Legal fee expense     41     (53 )   —     2,816     2,804  
Total operating expenses     15,034     7,047     199     4,693     26,973  
                                 
Operating income (loss)     (309 )   1,320     (199 )   (4,693 )   (3,881 )
                                 
Other income (expense)                                
Interest     (12 )   5     —     (42 )   (49 )
Other     4     (29 )   —     8     (17 )
Foreign exchange loss     —     (259 )   —     —     (259 )
Income (loss) before income taxes   $ (317 ) $ 1,037   $ (199 ) $ (4,727 ) $ (4,206 )
                                 
Depreciation and amortization included above   $ 357   $ 555   $ 1   $ 22   $ 935  
                                 
Share-based compensation included in above:                                
Cost of clinical laboratory services   $ 2     —     —     —   $ 2  
Research and development     —   $ 1     —     —     1  
Selling, general and administrative     12     3     —   $ 87     102  
Total   $ 14   $ 4     —   $ 87   $ 105  
                                 
Capital expenditures   $ 338   $ 51   $ —   $ —   $ 389  

Three months ended January 31, 2014
                     
    Clinical
Labs 		  Life
Sciences 		  Therapeutics   Other   Consolidated  
Revenues:                                
Clinical laboratory services   $ 13,848     —     —     —   $ 13,848  
Product revenues     —   $ 8,054     —     —     8,054  
Royalty and license fee income     —     1,026     —     —     1,026  
      13,848     9,080     —     —     22,928  
Operating expenses:                                
Cost of clinical laboratory services     9,292     —     —     —     9,292  
Cost of product revenues     —     3,865     —     —     3,865  
Research and development     3     543   $ 286     —     832  
Selling, general and administrative     4,981     3,318     —   $ 1,785     10,084  
Provision for uncollectible accounts receivable     920     (8 )   —     —     912  
Legal fee expense     142     15     —     1,339     1,496  
Total operating expenses     15,338     7,733     286     3,124     26,481  
                                 
Operating income (loss)     (1,490 )   1,347     (286 )   (3,124 )   (3,553 )
                                 
Other income (expense)                                
Interest     (11 )   3     —      (44 )   (52 )
Other     9     (6 )   —     12     15  
Foreign exchange gain     —     20     —     —     20  
Income (loss) before income taxes   $ (1,492 ) $ 1,364   $ (286 ) $ (3,156 ) $ (3,570 )
                                 
Depreciation and amortization included above   $ 355   $ 621   $ 2   $ 24   $ 1,002  
                                 
Share-based compensation included in above:                                
Cost of clinical laboratory services   $ 2     —     —     —   $ 2  
Research and development     —     —     —     —     —  
Selling, general and administrative     9   $ 5     —   $ 93     107  
Total   $ 11   $ 5     —   $ 93   $ 109  
                                 
Capital expenditures   $ 103   $ 7   $ —   $ —   $ 110  

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


Six months ended January 31, 2015                                
    Clinical
Labs 		  Life
Sciences 		  Therapeutics   Other   Consolidated  
Revenues:                                
Clinical laboratory services   $ 30,547     —     —     —   $ 30,547  
Product revenues     —   $ 15,725     —     —     15,725  
Royalty and license fee income     —     1,644     —     —     1,644  
      30,547     17,369     —     —     47,916  
Operating expenses:                                
Cost of clinical laboratory services     19,376     —     —     —     19,376  
Cost of product revenues     —     7,513     —     —     7,513  
Research and development     —     1,183   $ 442     —     1,625  
Selling, general and administrative     10,157     5,853     —   $ 3,945     19,955  
Provision for uncollectible accounts receivable     1,189     (47 )   —     —     1,142  
Legal     131     (51 )   —     5,190     5,270  
Total operating expenses     30,853     14,451     442     9,135     54,881  
                                 
Operating income (loss)     (306 )   2,918     (442 )   (9,135 )   (6,965 )
                                 
Other income (expense)                                
Interest     (39 )   7     —     (86 )   (118 )
Other     6     (35 )   —     31     2  
Foreign exchange gain     —     (731 )   —     —     (731 ) 
Income (loss) before income taxes   $ (339 ) $ 2,159   $ (442 ) $ (9,190 ) $ (7,812 )
                                 
Depreciation and amortization included above   $ 714   $ 1,113   $ 2   $ 44   $ 1,873  
                                 
Share-based compensation included in above:                                
Cost of clinical laboratory services   $ 3     —     —     —   $ 3  
Research and development     —   $ 2     —     —     2  
Selling, general and administrative     21     3     —   $ 174     198  
Total   $ 24   $ 5     —   $ 174   $ 203  
                                 
Capital expenditures   $ 589   $ 64   $ —   $ —   $ 653  

Six months ended January 31, 2014                                
    Clinical
Labs 		  Life
Sciences 		  Therapeutics   Other   Consolidated  
Revenues:                                
Clinical laboratory services   $ 28,707     —     —     —   $ 28,707  
Product revenues     —   $ 15,717     —     —     15,717  
Royalty and license fee income     —     2,637     —     —     2,637  
      28,707     18,354     —     —     47,061  
Operating expenses:                                
Cost of clinical laboratory services     19,001     —     —     —     19,001  
Cost of product revenues     —     7,712     —     —     7,712  
Research and development     14     1,069   $ 566     —     1,649  
Selling, general and administrative     10,031     6,813     —   $ 3,768     20,612  
Provision for uncollectible accounts receivable     1,764     20     —     —     1,784  
Legal     290     37     —     2,550     2,877  
Total operating expenses     31,100     15,651     566     6,318     53,635  
                                 
Operating income (loss)     (2,393 )   2,703     (566 )   (6,318 )   (6,574 )
                                 
Other income (expense)                                
Interest     (22 )   8     —     (100)     (114 )
Other     27     21     —     28     76  
Foreign exchange gain     —     317     —     —     317  
Income (loss) before income taxes   $ (2,388 ) $ 3,049   $ (566 ) $ (6,390 ) $ (6,295 )
                                 
Depreciation and amortization included above   $ 710   $ 1,262   $ 6   $ 49   $ 2,027  
                                 
Share-based compensation included in above:                                
Cost of clinical laboratory services   $ 4     —     —     —   $ 4  
Research and development     —   $ 1     —     —     1  
Selling, general and administrative     19     9     —   $ 179     207  
Total   $ 23   $ 10     —   $ 179   $ 212  
                                 
Capital expenditures   $ 362   $ 82   $ —   $ —   $ 444