Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v2.4.1.9
Segment reporting
 9 Months Ended
Apr. 30, 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 April 30, 2015
    Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 15,657       —       —       —     $ 15,657  
Product revenues     —     $ 7,906       —       —       7,906  
Royalty and license fee income     —       423       —       —       423  
      15,657       8,329       —       —       23,986  
Operating expenses:                                        
Cost of clinical laboratory services     9,724       —       —       —       9,724  
Cost of product revenues     —       3,779       —       —       3,779  
Research and development     —       704     $ 105       —       809  
Selling, general and administrative     4,935       3,031       —     $ 2,180       10,146  
Provision for uncollectible accounts receivable     631       (42 )     —       —       589  
Legal fee expense     42       (22 )     —       1,935       1,955  
Legal settlement, net     —       (170 )     —       —       (170 )
Total operating expenses     15,332       7,280       105       4,115       26,832  
                                         
Operating income (loss)     325       1,049       (105 )     (4,115 )     (2,846 )
                                         
Other income (expense)                                        
Interest     (23 )     6       —       (41 )     (58 )
Other     11       2       —       13       26  
Foreign exchange loss     —       (125 )     —       —       (125 )
Income (loss) before income taxes   $ 313     $ 932     $ (105 )   $ (4,143 )   $ (3,003 )
                                         
Depreciation and amortization included above   $ 358     $ 543     $ —     $ 22     $ 923  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 3       —       —       —     $ 3  
Research and development     —     $ —       —       —       —  
Selling, general and administrative     9       6       —     $ 95       110  
Total   $ 12     $ 6       —     $ 95     $ 113  
                                         
Capital expenditures   $ 453     $ 58     $ —     $ 4     $ 515  

Three months ended April 30, 2014
    Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 14,542       —       —       —     $ 14,542  
Product revenues     —     $ 8,707       —       —       8,707  
Royalty and license fee income     —       729       —       —       729  
      14,542       9,436       —       —       23,978  
Operating expenses:                                        
Cost of clinical laboratory services     9,784       —       —       —       9,784  
Cost of product revenues     —       3,800       —       —       3,800  
Research and development     —       599     $ 250       —       849  
Selling, general and administrative     5,091       3,278       —     $ 2,236       10,605  
Provision for uncollectible accounts receivable     684       —       —       —       684  
Legal fee expense     282       766       —       836       1,911  
Legal settlements, net     2,000       (5,100 )             —       (3,100 )
Total operating expenses     17,841       3,343       250       3,099       24,533  
                                         
Operating income (loss)     (3,299 )     6,093       (250 )     (3,099 )     (555 )
                                         
Other income (expense)                                        
Interest     (10 )     4       —       (41 )     (47 )
Other     7       (2 )     —       5       10  
Foreign exchange gain     —       144       —       —       144  
Income (loss) before income taxes   $ (3,302 )   $ 6,239     $ (250 )   $ (3,135 )   $ (448 )
                                         
Depreciation and amortization included above   $ 351     $ 614     $ —     $ 23     $ 988  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       1       —       —     $ 3  
Research and development     —       —       —       —       —  
Selling, general and administrative     9     $ (4 )     —     $ 275       280  
Total   $ 11     $ (3 )     —     $ 275     $ 283  
                                         
Capital expenditures   $ 90     $ 36     $ —     $ —     $ 126  

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


Nine months ended April 30, 2015
    Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 46,204       —       —       —     $ 46,204  
Product revenues     —     $ 23,631       —       —       23,631  
Royalty and license fee income     —       2,067       —       —       2,067  
      46,204       25,698       —       —       71,902  
Operating expenses:                                        
Cost of clinical laboratory services     29,100       —       —       —       29,100  
Cost of product revenues     —       11,292       —       —       11,292  
Research and development     —       1,887     $ 547       —       2,434  
Selling, general and administrative     15,090       8,886       —     $ 6,125       30,101  
Provision for uncollectible accounts receivable     1,820       (89 )     —       —       1,731  
Legal fee expense     174       (74 )     —       7,125       7,225  
Legal settlement, net     —       (170 )                     (170 )
Total operating expenses     46,184       21,732       547       13,250       81,713  
                                         
Operating income (loss)     20       3,966       (547 )     (13,250 )     (9,811 )
                                         
Other income (expense)                                        
Interest     (63 )     13       —       (126 )     (176 )
Other     18       (34 )     —       44       28  
Foreign exchange gain     —       (856 )     —       —       (856 )
Income (loss) before income taxes   $ (25 )   $ 3,089     $ (547 )   $ (13,332 )   $ (10,815 )
                                         
Depreciation and amortization included above   $ 1,072     $ 1,656     $ 2     $ 67     $ 2,797  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 9       —       —       —     $ 9  
Research and development     —     $ 2       —       —       2  
Selling, general and administrative     30       9       —     $ 269       308  
Total   $ 39     $ 11       —     $ 269     $ 319  
                                         
Capital expenditures   $ 1,042     $ 122     $ —     $ 4     $ 1,168  

Nine months ended April 30, 2014
    Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 43,250       —       —       —     $ 43,250  
Product revenues     —     $ 24,424       —       —       24,424  
Royalty and license fee income     —       3,366       —       —       3,366  
      43,250       27,790       —       —       71,040  
Operating expenses:                                        
Cost of clinical laboratory services     28,785       —       —       —       28,785  
Cost of product revenues     —       11,511       —       —       11,511  
Research and development     14       1,668     $ 816       —       2,498  
Selling, general and administrative     15,122       10,098       —     $ 5,997       31,217  
Provision for uncollectible accounts receivable     2,448       20       —       —       2,468  
Legal fee expense     572       803       —       3,413       4,788  
Legal settlements, net     2,000       (5,100 )                     (3,100 )
Total operating expenses     48,941       19,000       816       9,410       78,167  
                                         
Operating income (loss)     (5,691 )     8,790       (816 )     (9,410 )     (7,127 )
                                         
Other income (expense)                                        
Interest     (32 )     13       —       (142 )     (161 )
Other     34       18       —       33       85  
Foreign exchange gain     —       460       —       —       460  
Income (loss) before income taxes   $ (5,689 )   $ 9,281     $ (816 )   $ (9,519 )   $ (6,743 )
                                         
Depreciation and amortization included above   $ 1,061     $ 1,876     $ 6     $ 72     $ 3,015  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 6       1       —       —     $ 7  
Research and development     —     $ 1       —       —       1  
Selling, general and administrative     28       5       —     $ 456       489  
Total   $ 34     $ 7       —     $ 456     $ 497  
                                         
Capital expenditures   $ 453     $ 117     $ —     $ —     $ 570