Annual report pursuant to Section 13 and 15(d)

Segment reporting

v3.20.2
Segment reporting
 12 Months Ended
Jul. 31, 2020
Segment Reporting [Abstract]  
Segment reporting

Note 17 - Segment reporting


The Company has three reportable segments: Products, Clinical Services and Therapeutics. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Therapeutics 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 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.


Legal settlements, net, represent activities for which royalties would have been received in the Company’s Products segment. 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.


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


Year ended July 31, 2020


    Clinical
Laboratory Services		     Life
Sciences Products		     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 47,964     $ 26,561       —       —     $ 74,525  
Grant income     1,496       —       —       —       1,496  
Total     49,460       26,561       —       —       76,021  
Operating costs and expenses::                                        
Cost of revenues     38,855       13,396       —       —       52,251  
Research and development     1,509       2,190     $ 749       —       4,448  
Selling, general and administrative     23,533       10,485       —     $ 8,942       42,960  
Legal and related expenses     211       2       —       6,516       6,729  
Total operating costs and expenses     64,108       26,073       749       15,458       106,388  
                                         
Operating (loss) income     (14,648 )     488       (749 )     (15,458 )     (30,367 )
                                         
Other income (expense)                                        
Interest     (36 )     56       —       434       454  
Other     45       13       —       430       488  
Foreign exchange gain     —       905       —       —       905  
(Loss) income before taxes   $ (14,639 )   $ 1,462     $ (749 )   $ (14,594 )   $ (28,520 )
                                         
Depreciation and amortization included above   $ 1,553     $ 964       —     $ 263     $ 2,780  
                                         
Share-based compensation included  above:                                        
Selling, general and administrative     57       74       —       756       887  
Cost of sales     46       —       —       —       46  
Total   $ 103     $ 74       —     $ 756     $ 933  
                                         
Capital expenditures   $ 1,811     $ 322       —     $ 37     $ 2,170  

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


Year ended July 31, 2019


    Clinical
Laboratory Services		     Life
Sciences Products		     Therapeutics     Other     Consolidated  
Revenues   $ 51,115     $ 30,055     $ —     $ —     $ 81,170  
Operating costs, expenses and legal settlements, net:                                        
Cost of revenues     44,226       13,696       —       —       57,922  
Research and development     31       2,257       887       —       3,175  
Selling, general and administrative     24,230       11,860       —       8,175       44,265  
Legal and related expenses     159       27       —       2,814       3,000  
Legal settlements, net     —       (28,925 )     —       —       (28,925 )
Total operating costs, expenses and legal settlements, net     68,646       (1,085 )     887       10,989       79,437  
                                         
Operating income (loss)     (17,531 )     31,140       (887 )     (10,989 )     1,733  
                                         
Other income (expense)                                        
Interest     (64 )     67       —       1,053       1,056  
Other     16       2       —       364       382  
Foreign exchange loss     —       (682 )     —       —       (682 )
Income (loss) before taxes   $ (17,579 )   $ 30,527     $ (887 )   $ (9,572 )   $ 2,489  
                                         
Depreciation and amortization included above   $ 1,625     $ 1,221     $ —     $ 190     $ 3,036  
                                         
Share-based compensation included  above:                                        
Selling, general and administrative     147       95       —     $ 697       939  
Total   $ 147     $ 95     $ —     $ 697     $ 939  
                                         
Capital expenditures   $ 1,374     $ 605     $ —     $ 6,147     $ 8,126  

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


Year ended July 31, 2018


    Clinical
Laboratory Services		     Life
Sciences Products		     Therapeutics     Other     Consolidated  
Revenues   $ 71,077     $ 29,936     $ —     $ —     $ 101,013  
Operating costs and expenses:                                        
Cost of revenues     46,008       14,377       —       —       60,385  
Research and development     —       2,305       905       —       3,210  
Selling, general and administrative     24,656       11,617       —       8,182       44,455  
Legal and related expenses     67       58       —       5,002       5,127  
Total operating costs and expenses     70,731       28,357       905       13,184       113,177  
                                         
Operating income (loss)     346       1,579       (905 )     (13,184 )     (12,164 )
                                         
Other income (expense)                                        
Interest     (91 )     50       —       894       853  
Other     29       11       —       128       168  
Foreign exchange loss     —       (275 )     —       —       (275 )
Income (loss) before taxes   $ 284     $ 1,365     $ (905 )   $ (12,162 )   $ (11,418 )
                                         
Depreciation and amortization included above   $ 1,667     $ 1,387     $ —     $ 76     $ 3,130  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     125       79       —     $ 609       813  
Total   $ 125     $ 79     $ —     $ 609     $ 813  
                                         
Capital expenditures   $ 1,685     $ 203     $ —     $ —     $ 1,888  

Geographic financial information is as follows:


Net Services, Products and Grant and royalty revenues from unaffiliated customers, Year ended July 31,:   2020     2019     2018  
United States   $ 64,040     $ 68,081     $ 87,296  
Switzerland     608       820       829  
United Kingdom     1,189       1,642       1,494  
Other international countries     10,184       10,627       11,394  
Total   $ 76,021     $ 81,170     $ 101,013  
                         

Long-lived assets, at July 31,   2020     2019  
United States   $ 41,946     $ 22,057  
Switzerland     352       376  
United Kingdom     23       64  
Other international countries     67       96  
Total   $ 42,388     $ 22,593  

The Company’s reportable segments are determined based on the services they perform, the products they sell, and the royalties and license fee income they earn, not on the geographic area in which they operate. The Company’s Clinical Laboratory Services segment operates 100% in the United States with all revenue derived there. The Life Sciences Products segment earns product revenue both in the United States and foreign countries and royalty and license fee income in the United States. The following is a summary of the Life Sciences Products segment product and royalty revenues attributable to customers located in the United States and foreign countries for the years ended July 31,:


    2020     2019     2018  
United States   $ 14,580     $ 16,966     $ 16,220  
Foreign countries     11,981       13,089       13,716  
    $ 26,561     $ 30,055     $ 29,936