Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.3.0.814
Segment reporting
 3 Months Ended
Oct. 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. Legal settlements, net represent activities for which royalties would have been received by the Company’s Life Sciences segment had the Company had agreements in place with plaintiffs for the products covered by the settlements.


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, 2015.


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


Three months ended October 31, 2015   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 17,090       —       —       —     $ 17,090  
Product revenues     —     $ 7,687       —       —       7,687  
Royalty and license fee income     —       400       —       —       400  
      17,090       8,087       —       —       25,177  
Operating expenses:                                        
Cost of clinical laboratory services     10,332       —       —       —       10,332  
Cost of product revenues     —       3,611       —       —       3,611  
Research and development     —       667     $ 200       —       867  
Selling, general and administrative     5,286       3,059       —     $ 1,880       10,225  
Provision for uncollectible accounts receivable     708       (4 )     —       —       704  
Legal fee expense     9       (22 )     —       1,614       1,601  
Legal settlement, net     —       (6,800 )     —       —       (6,800 )
Total operating expenses     16,335       511       200       3,494       20,540  
                                         
Operating income (loss)     755       7,576       (200 )     (3,494 )     4,637  
                                         
Other income (expense)                                        
Interest     (19 )     14       —       (35 )     (40 )
Other     4       39       —       11       54  
Foreign exchange loss     —       (130 )     —       —       (130 )
Income (loss) before income taxes   $ 740     $ 7,499     $ (200 )   $ (3,518 )   $ 4,521  
                                         
Depreciation and amortization included above   $ 397     $ 530     $ —     $ 23     $ 950  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 1       —       —       —     $ 1  
Research and development     —     $ —       —       —       —  
Selling, general and administrative     10       5       —     $ 95       110  
Total   $ 11     $ 5       —     $ 95     $ 111  
                                         
Capital expenditures   $ 437     $ 68     $ —     $ —     $ 505  

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 gain     —       (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