10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Mark one

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2015

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________ to ___________________

Commission File Number 001-09974

ENZO BIOCHEM, INC.

(Exact name of registrant as specified in its charter)

New York	13-2866202
(State or Other Jurisdiction	(IRS. Employer
of Incorporation or Organization)	Identification No.)
527 Madison Ave, New York, New York	10022
(Address of Principal Executive office)	(Zip Code)
212-583-0100
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant has required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 45 of Regulation S-T (§232.405 of that chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).

Yes x No o 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer o Accelerated filer x Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)

Yes o No x

As of March 2, 2015, the Registrant had approximately 45,374,000 shares of common stock outstanding.

ENZO BIOCHEM, INC.
FORM 10-Q
January 31, 2015

INDEX

PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Balance Sheets – January 31, 2015 (unaudited) and July 31, 2014 (audited)	3
	Consolidated Statements of Operations for the three and six months ended January 31, 2015 and 2014 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended January 31, 2015 and 2014 (unaudited)	5
	Consolidated Statement of Stockholders’ Equity for the six months ended January 31, 2015 (unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended January 31, 2015 and 2014 (unaudited)	7
	Notes to the Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
Part II – OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 6.	Exhibits	33
Signatures		33

2

Part 1 Financial Information

Item 1 Financial Statements

ENZO BIOCHEM, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	January 31, 2015 (unaudited)			July 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	15,346		$	17,455
Accounts receivable, net of allowances		11,795			12,470
Inventories		8,283			8,690
Prepaid expenses and other		1,593			2,121
Total current assets		37,017			40,736
Property, plant and equipment, net		7,567			7,730
Goodwill		7,452			7,452
Intangible assets, net		7,122			8,108
Other assets		385			385
Total assets	$	59,543		$	64,411
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Loan payable	$	3,013		$	3,013
Accounts payable – trade		6,840			8,245
Accrued liabilities		12,007			12,917
Other current liabilities		830			790
Total current liabilities		22,690			24,965
Deferred taxes		119			183
Other liabilities		1,872			2,313
Total liabilities	$	24,681		$	27,461
Commitments and contingencies
Stockholders’ equity:
Preferred Stock, $.01 par value; authorized 25,000,000 shares; no shares issued or outstanding		—			—
Common Stock, $.01 par value; authorized 75,000,000 shares; shares issued and outstanding: 45,374,074 at January 31, 2015 and 44,239,183 at July 31, 2014		454			443
Additional paid-in capital		322,738			317,160
Accumulated deficit		(290,217	)		(282,397	)
Accumulated other comprehensive income		1,887			1,744
Total stockholders’ equity		34,862			36,950
Total liabilities and stockholders’ equity	$	59,543		$	64,411

The accompanying notes are an integral part of these consolidated financial statements.

3

ENZO BIOCHEM, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share data)

	Three Months Ended January 31,						Six Months Ended January 31,
	2015			2014			2015			2014
Revenues:
Clinical laboratory services	$	14,725		$	13,848		$	30,547		$	28,707
Product revenues		7,723			8,054			15,725			15,717
Royalty and license fee income		644			1,026			1,644			2,637
Total revenues		23,092			22,928			47,916			47,061
Operating expenses:
Cost of clinical laboratory services		9,246			9,292			19,376			19,001
Cost of product revenues		3,818			3,865			7,513			7,712
Research and development		834			832			1,625			1,649
Selling, general, and administrative		9,670			10,084			19,955			20,612
Provision for uncollectible accounts receivable		601			912			1,142			1,784
Legal fee expense		2,804			1,496			5,270			2,877
Total operating expenses		26,973			26,481			54,881			53,635
Operating loss		(3,881	)		(3,553	)		(6,965	)		(6,574	)
Other income (expense):
Interest		(49	)		(52	)		(118	)		(114	)
Other		(17	)		15			2			76
Foreign exchange (loss) gain		(259	)		20			(731	)		317
Loss before income taxes		(4,206	)		(3,570	)		(7,812	)		(6,295	)
Benefit (provision) for income taxes		115			4			(8	)		(58	)
Net loss	$	(4,091	)	$	(3,566	)	$	(7,820	)	$	(6,353	)
Net loss per common share:
Basic and diluted	$	(0.09	)	$	(0.09	)	$	(0.17	)	$	(0.15	)
Weighted average common shares outstanding:
Basic and diluted		45,000			41,887			44,782			41,472

The accompanying notes are an integral part of these consolidated financial statements.

4

ENZO BIOCHEM, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(in thousands)

	Three Months Ended January 31,						Six Months Ended January 31,
	2015			2014			2015			2014
Net loss	$	(4,091	)	$	(3,566	)	$	(7,820	)	$	(6,353	)
Other comprehensive income (loss):
Foreign currency translation adjustments		35			(47	)		143			(91	)
Comprehensive loss	$	(4,056	)	$	(3,613	)	$	(7,677	)	$	(6,444	)

The accompanying notes are an integral part of these consolidated financial statements.

5

ENZO BIOCHEM, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

Six months ended January 31, 2015

(UNAUDITED)

(in thousands, except share data)

	Common Stock Shares		Common Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Income		Total Stockholders’ Equity
Balance at July 31, 2014		44,239,183	$	443	$	317,160	$	(282,397	)	$	1,744	$	36,950
Net loss for the period ended January 31, 2015		—		—		—		(7,820	)		—		(7,820	)
Vesting of restricted stock		8,087		—		—		—			—		—
Share-based compensation charges		—		—		203		—			—		203
Net proceeds from issuance of common stock (net of expenses of $169)		1,126,804		11		5,330		—			—		5,341
Amortization of options in lieu of payment of cash bonuses		—		—		45		—			—		45
Foreign currency translation adjustments		—		—		—		—			143		143
Balance at January 31, 2015		45,374,074	$	454	$	322,738	$	(290,217	)	$	1,887	$	34,862

The accompanying notes are an integral part of these consolidated financial statements

6

ENZO BIOCHEM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

	Six Months Ended January 31,
	2015			2014
Cash flows from operating activities:
Net loss	$	(7,820	)	$	(6,353	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property, plant and equipment		1,014			1,099
Amortization of intangible assets		859			928
Provision for uncollectible accounts receivable		1,142			1,784
Deferred income tax benefit		(48	)		(50	)
Share-based compensation charges		203			212
Accrual for share-based 401(k) employer match expense		296			319
Foreign exchange loss (gain)		570			(319	)
Changes in operating assets and liabilities:
Accounts receivable		(524	)		(1,333	)
Inventories		306			(381	)
Prepaid expenses and other		524			512
Accounts payable – trade		(1,423	)		345
Accrued liabilities, other current liabilities and other liabilities		(1,571	)		(1,467	)
Total adjustments		1,348			1,649
Net cash used in operating activities		(6,472	)		(4,704	)
Cash flows from investing activities:
Capital expenditures		(653	)		(444	)
Security deposits and other		—			(28	)
Net cash used in investing activities		(653	)		(472	)
Cash flows from financing activities:
Net proceeds from issuance of common stock		5,341			4,244
Proceeds from borrowings under Credit Agreement		43,362			36,614
Repayments under Credit Agreement		(43,362	)		(36,965	)
Installment loan and capital lease obligation payments		(230	)		(181	)
Net cash provided by financing activities		5,111			3,712
Effect of exchange rate changes on cash and cash equivalents		(95	)		78
Decrease in cash and cash equivalents		(2,109	)		(1,386	)
Cash and cash equivalents - beginning of period		17,455			9,007
Cash and cash equivalents - end of period	$	15,346		$	7,621

The accompanying notes are an integral part of these consolidated financial statements.

7

ENZO BIOCHEM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of January 31, 2015
and for the six months ended January 31, 2015 and 2014 

(Unaudited)
(Dollars in thousands, except share data)

Note 1 – Basis of Presentation

The accompanying consolidated financial statements include the accounts of Enzo Biochem, Inc. and its wholly-owned subsidiaries, Enzo Life Sciences, Enzo Clinical Labs, Enzo Therapeutics and Enzo Realty LLC, collectively referred to as the “Company” or “Companies”. The consolidated balance sheet as of January 31, 2015, the consolidated statements of operations and the consolidated statements of comprehensive income (loss) for the three and six months ended January 31, 2015 and 2014, the consolidated statements of cash flows for the six months ended January 31, 2015 and 2014, and the consolidated statement of stockholders’ equity for the six months ended January 31, 2015 are unaudited. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and operating results for the interim periods have been made. Certain information and footnote disclosure, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted. The consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended July 31, 2014 and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The consolidated balance sheet at July 31, 2014 has been derived from the audited financial statements at that date. The results of operations for the three and six months ended January 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2015.

Note 2 – Net loss per share

Basic net income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. The dilutive effect of potential common shares if any, consisting of outstanding stock options and unvested restricted stock is determined using the treasury stock method. Diluted weighted average shares outstanding for the three and six months ended January 31, 2015 and 2014, as a result of the net loss for each period, do not include the potential common shares from stock options and unvested restricted stock because to do so would be antidilutive, and as such is the same as basic weighted average shares outstanding.

During the three and six months ended January 31, 2015, potential shares from unvested restricted stock excluded from the computation of diluted net loss per share were approximately zero and 18,000 shares, respectively. During the three and six months ended January 31, 2014, potential shares from unvested restricted stock excluded from the computation of diluted net loss per share were approximately zero and 22,000 shares, respectively.

For the three and six months ended January 31, 2015, potential shares for “in the money” stock options excluded from the computation of diluted net loss per share were approximately 411,000 and 438,000 shares, respectively. For the three and six months ended January 31, 2014, there were no potential shares for “in the money” stock options excluded from the computation of diluted net loss per share.

For the three and six months ended January 31, 2015 the effect of approximately 52,000 and 97,000 shares respectively, of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. For the three and six months ended January 31, 2014 the effect of approximately 1,341,000 and 1,032,000 shares respectively, of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive.

Note 3 - Supplemental disclosure for statement of cash flows

For the six months ended January 31, 2015 and 2014, income taxes paid by the Company were $37 and $17, respectively. 

For the six months ended January 31, 2015 and 2014, interest paid by the Company was $101 and $98, respectively. 

8

For the six months ended January 31, 2015 and 2014, the Company financed $57 and $154 respectively, in machinery and transportation equipment under installment loans. 

During the six months ended January 31, 2015, there was a total of $155 in capital lease agreements. During the six months ended January 31, 2014, the Company did not enter into any capital lease agreements.

During the six months ended January 31, 2015, the Company recorded $45 in additional paid in capital and reduced accrued liabilities by the same amount for options previously issued in lieu of cash payment of certain incentive compensation awards.

Note 4 - Inventories

Inventories consist of the following:

	January 31, 2015		July 31, 2014
Raw materials	$	1,086	$	1,092
Work in process		2,285		2,460
Finished products		4,912		5,138
	$	8,283	$	8,690

Note 5 – Goodwill and intangible assets

At January 31, 2015 and July 31, 2014, the Company’s net carrying amount of goodwill, related to the Clinical Labs segment, is $7,452.

The Company’s change in the net carrying amount of intangible assets, all of which is included in the Life Sciences segment is as follows:

	Gross			Accumulated Amortization			Net
July 31, 2014	$	28,478		$	(20,370	)	$	8,108
Amortization expense		—			(859	)		(859	)
Foreign currency translation		(442	)		315			(127	)
January 31, 2015	$	28,036		$	(20,914	)	$	7,122

Intangible assets consist of the following:

	January 31, 2015							July 31, 2014
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Patents	$	11,027	$	(10,793	)	$	234	$	11,027	$	(10,775	)	$	252
Customer relationships		12,343		(6,943	)		5,400		12,602		(6,565	)		6,037
Website and acquired content		1,027		(1,027	)		—		1,037		(1,037	)		—
Licensed technology and other		511		(422	)		90		537		(434	)		103
Trademarks		3,128		(1,729	)		1,398		3,275		(1,559	)		1,716
Total	$	28,036	$	(20,914	)	$	7,122	$	28,478	$	(20,370	)	$	8,108

9

At January 31, 2015, information with respect to intangibles assets acquired is as follows:

	Useful life assigned	Weighted average remaining useful life
Customer relationships	8-15 years	5.5 years
Trademarks	5 years	2.5 years
Other intangibles	4-5 years	0.5 year

At January 31, 2015, the weighted average useful life of amortizable intangible assets is approximately four and half years.

Note 6 - Loan Payable

On June 7, 2013, the Company entered into a secured Revolving Loan and Security Agreement (the “Credit Agreement”) among the Company and certain of its subsidiaries, with Enzo Therapeutics as a guarantor, and Healthcare Finance Group, LLC (the “Lender).The Credit Agreement, which expires in December 2016, provides for borrowings against eligible US receivables, as defined, of the Clinical Lab and Life Science segments up to $8.0 million at defined eligibility percentages and provides for additional borrowings of $4.0 million for increased eligible assets. Debt issuance costs of $281 are being amortized over the life of the Credit Agreement. If the amount of borrowings outstanding under the revolving credit facility exceeds the borrowing base then in effect, or the Lender requires a reserve, the Company will be required to repay such borrowings in an amount sufficient to eliminate such excess. Interest on advances, payable monthly, is based on the three month LIBOR rate, with a floor of 1.25% plus an applicable margin of 4.0%, In the event of any default, the interest rate may be increased 3.0% over the current rate. The facility also carries a non-utilization fee of 0.50% per annum, payable monthly, on the unused portion of the Credit Agreement. The Credit Agreement requires a minimum borrowing of $2.0 million. At January 31, 2015 and July 31, 2014, the borrowings under the Credit Agreement related to the Clinical Labs and Life Sciences receivables aggregated $3.0 million with an additional availability of $1.9 million at January 31, 2015.

The Company’s obligations under the Credit Agreement are secured by primarily all the unencumbered U.S. assets of the Company, excluding buildings and intellectual property which the Lender has a negative pledge, and the capital stock of subsidiaries. The Credit Agreement includes customary affirmative and negative covenants and events of default and requires maximum levels of cash usage and minimum levels of liquidity, as defined, and provides for increased liquidity levels if operating results are not achieved. Negative covenants include among others, limitations on additional debt, liens, loans or investments, distributions, asset sales and affiliate transactions. Events of default include non-payment of principal and interest on debt outstanding, non-performance of covenants, material change in business, breach of representations, bankruptcy and insolvency, material judgments and changes in control. As of January 31, 2015, the Company is in compliance with the financial covenants.

Note 7 – Accrued Liabilities and Other Current Liabilities

Accrued liabilities consist of the following:

	January 31, 2015		July 31, 2014
Legal fee expense		5,808		4,721
Payroll, benefits, and commissions	$	3,116	$	4,959
Professional fees		627		638
Research and development		400		400
Other		2,056		2,199
	$	12,007	$	12,917

Other current liabilities consist of the following:

	January 31, 2015		July 31, 2014
Accrued legal settlement	$	400	$	400
Installment loans		281		241
Capital lease obligations		149		149
	$	830	$	790

10

Note 8 – Other Liabilities

Other liabilities consist of the following:

	January 31, 2015		July 31, 2014
Accrued legal settlement	$	1,200	$	1,600
Capital lease obligations, net of short term		287		344
Installment loans, net of short term		385		369
	$	1,872	$	2,313

As of January 31, 2015, future minimum payments under the capital leases, net of interest of $45 aggregates $567, including a short term debt portion of $149 included in other current liabilities. Future minimum payments under the installment loans aggregate $575, including a short term portion of $281 included in other current liabilities. A total of $1.2 million was recorded as accrued legal settlement which is further discussed in Note 13 - Contingencies.

Note 9 – Stockholders’ Equity

Controlled Equity Offering

On March 28, 2013, the Company entered into a Controlled Equity Offering^SM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co., as sales agent (“Cantor”). Under the Sales Agreement, the Company may offer and sell, from time to time, through Cantor, shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), having an aggregate offering price of up to $20.0 million (the “Shares”). The Company will pay Cantor a commission of 3.0% of the aggregate gross proceeds received under the Sales Agreement. The Company is not obligated to make any sales of the Shares under the Sales Agreement. The offering of Shares pursuant to the Sales Agreement will terminate upon the earlier of (a) the sale of all of the Shares subject to the Sales Agreement or (b) the termination of the Sales Agreement by Cantor or the Company, as permitted therein. The Shares were initially issued pursuant to the Company’s Registration Statement on Form S-3 which was declared effective on August 5, 2010 and a prospectus supplement, dated March 28, 2013, and more recently under the Company’s current Registration Statement on Form S-3 which was declared effective on August 13, 2013 and a prospectus supplement dated August 1, 2013, filed by the Company with the Securities and Exchange Commission (the “SEC”).

During the six months ended January 31, 2015, the Company sold an aggregate of 1,126,804 shares of Common Stock under the Sales Agreement at an average price of $4.89 per share and received proceeds of approximately $5.3 million, net of expenses of $169. For the six months ended January 31, 2014, the Company sold an aggregate of 1,686,413 shares of Common Stock under the Sales Agreement at an average price of $2.59 per share and received proceeds of approximately $4.2 million, net of expenses of $131.

On December 31, 2014, the Sales Agreement was amended in order for the Company to offer and sell, through Cantor, acting as agent, additional shares of Common Stock having an aggregate offering price of $20.0 million.  In connection with the amendment to the Sales Agreement, the Company also filed with the SEC a prospectus supplement dated December 31, 2014.  As of January 31, 2015, the Company still had Common Stock remaining available for sale pursuant to the Sales Agreement and the prior prospectus supplement dated August 1, 2013.

Share-based compensation

The Company has an incentive stock option plan (the “1999 Plan”), an incentive stock option and restricted stock award plan (the “2005 Plan”), and a long term incentive share award plan, (the “2011 Incentive Plan”), which are more fully described in Note 10 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014. The 2011 Plan, which is the only plan from which awards may now be granted, provides for the award to eligible employees, officers, directors, consultants and other persons of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, performance awards, and other stock-based awards.

11

The amounts of share-based compensation expense recognized in the periods presented are as follows:

	Three months ended January 31,				Six months ended January 31,
	2015		2014		2015		2014
Stock options	$	91	$	63	$	176	$	110
Restricted stock		14		46		27		102
	$	105	$	109	$	203	$	212

The following table sets forth the amount of expense related to share-based payment arrangements included in specific line items in the accompanying statements of operations:

	Three months ended January 31,				Six months ended January 31,
	2015		2014		2015		2014
Cost of clinical laboratory services	$	2	$	2	$	3	$	4
Research and development		1		—		2		1
Selling, general and administrative		102		107		198		207
	$	105	$	109	$	203	$	212

No excess tax benefits were recognized during the six month periods ended January 31, 2015 and 2014.

Stock Option Plans

The following table summarizes stock option activity during the six month period ended January 31, 2015:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (000s)
Outstanding at July 31, 2014		1,155,910		$	5.03
Awarded		383,873		$	3.57
Exercised		—		$	—
Cancelled or expired		(180,900	)	$	16.82
Outstanding at end of period		1,358,883		$	3.06		3.0 years	$	602
Exercisable at end of period		777,022		$	2.89	1.8 years		$	301

As of January 31, 2015, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $0.7 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is twenty-one months.

The intrinsic value of stock option awards that vested during the fiscal year represents the value of the Company’s closing stock price on the last trading day of the fiscal year in excess of the exercise price multiplied by the number of options that vested.

12

Restricted Stock Awards

A summary of the activity pursuant to the Company’s unvested restricted stock awards for the six months ended January 31, 2015 is as follows:

	Awards			Weighted Average Award Price
Outstanding at July 31, 2014		42,502		$	5.74
Awarded		3,000		$	5.62
Vested		(8,087	)	$	(1.86	)
Forfeited		(5,250	)	$	(3.31	)
Unvested at end of period		32,165		$	7.09

The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of January 31, 2015, there was approximately $0.1 million of unrecognized compensation cost related to unvested restricted stock-based compensation to be recognized over a weighted average remaining period of approximately eighteen months.

The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 1,298,000 shares as of January 31, 2015.

The fair value of the awards that vested during the six months ended January 31, 2015 and 2014 was $43 and $381, respectively.

Note 10 - Income taxes

At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods.

The Company’s effective tax rate benefit for the three months ended January 31, 2015 was 2.7% compared to a deminimus benefit during the three months ended January 31, 2014. The Company’s effective tax rate provision was deminimus for the six months ended January 31, 2015 and 2014. The tax provision or benefit for the periods was based on state, local and foreign taxes, net of the benefit for amortization of foreign intangibles. The Company’s effective tax rate for both periods differed from the expected net operating loss carryforward benefit at the U.S. federal statutory rate of 34% primarily due to the inability to recognize such benefit. The carryforward benefit cannot be recognized because of uncertainties relating to future taxable income in terms of both its timing and its sufficiency, which would enable the Company to realize the federal carryforward benefit.

The Company files a consolidated Federal income tax return. The Company files combined returns with California, Michigan and New York State and City for certain subsidiaries. Other subsidiaries file separate state and foreign tax returns. With few exceptions, the periods that remain subject to examination are fiscal years ended July 31, 2011 through July 31, 2014.

Note 11 – Royalty and licensing income

The Company’s Life Science segment has a license agreement with QIAGEN Gaithersburg Inc. (“Qiagen”) that began in 2005, whereby the Company earns quarterly royalties on the net sales of Qiagen products subject to the license until the expiration of the patent on April 24, 2018. During the three months ended January 31, 2015 and 2014, the Company recorded royalty income under the agreement of approximately $0.6 million and $1.0 million respectively. During the six months ended January 31, 2015 and 2014, the Company recorded royalty income under the agreement of approximately $1.6 million and $2.6 million respectively. 

13

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.

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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

15

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

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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

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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

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Note 13 – Contingencies

On June 7, 2004, the Company and Enzo Life Sciences, Inc., filed suit in the United States District Court for the District of Connecticut against Applera Corporation and its wholly-owned subsidiary Tropix, Inc., which became Life Technologies, Inc. (NASDAQ:LIFE) and was acquired by Thermo Fisher Scientific, Inc. (NYSE:TMO) on February 3, 2014. The complaint alleged infringement of six patents relating to DNA sequencing systems, labeled nucleotide products, and other technology. Yale University is the owner of four of the patents and the Company is the exclusive licensee. These four patents are commonly referred to as the “Ward” patents. On November 12, 2012, a jury in New Haven found that one of these patents (United States Patent No. 5,449,667) was infringed and not proven invalid. The jury awarded $48.5 million for this infringement. On January 6, 2014, the judge awarded prejudgment interest of approximately $12.5 million and additional post-interest on the full amount will also be awarded starting November 7, 2012 until the total award is satisfied. The final award to Enzo could be reduced or be subject to possible claims from third parties. On February 3, 2014, Life Technologies filed a notice of appeal and the case was argued before the Court of Appeals for the Federal Circuit on November 6, 2014. There can be no assurance that the Company will be successful in this litigation. Even if the Company is not successful, management does not believe that there will be a significant adverse monetary impact on the Company.

As of August 1, 2014, the Company was engaged in litigation in the United States District Court for the Southern District of New York against two parties (and certain of their related companies), Roche Diagnostic GmbH (“Roche”), as plaintiff and declaratory judgment defendant, and Molecular Probes, Inc. (“Molecular Probes”). These cases were commenced in May 2004 and May 2003, respectively. The Company has asserted similar (with some differences) causes of action against Roche and Molecular Probes in these two cases, with the exception of a breach of contract claim only asserted against Roche. Roche seeks a declaratory judgment of non-breach and patent invalidity, while Molecular Probes seeks a declaratory judgment of patent invalidity against the Company. Roche has also asserted tort claims against the Company. The two cases were consolidated for pre-trial purposes in 2004 and there has been extensive discovery. In 2011, Roche and Molecular Probes moved for summary judgment of non-infringement regarding the Company’s patent claims. In 2012, those motions were granted in part and denied in part. In December 2012, Roche and Molecular Probes moved for summary judgment on the Company’s non-patent claims. Additional discovery was taken and the Company responded to the motions in May 2013. On December 6, 2013, the Court granted in part and denied in part Roche’s summary judgment motion. On October 22, 2014, the Court ordered that damages discovery concerning the Company’s remaining contract and patent claims and Roche’s claims should be completed by January 30, 2015, and expert discovery should be completed following the Court’s not-yet-issued claim construction ruling relating to two of the Company’s patents asserted against Roche. Roche dropped its tort claims during damages discovery. On January 30, 2014, Roche and the Company jointly moved the Court to extend the schedule for damages discovery until 50 days after the Court’s rulings on two pending motions concerning discovery. Also on December 6, 2013, the Court granted Molecular Probes’ motion for summary judgment dismissing the Company’s non-patent claims and its claims concerning one of its patents. The Company continues to assert patent infringement claims against Molecular Probes. On December 18, 2014, the Court ordered that damages discovery concerning the Company’s remaining patent claims and Molecular Probes’ counterclaims should be completed by March 31, 2015, and expert discovery should be completed by June 30, 2015. The Company’s former counsel, Greenberg Traurig LLP, is also engaged in litigation against the Company in the United States District Court for the Southern District of New York concerning Greenberg Traurig’s request for a charging lien relating to its representation of the Company in these two and other cases.

On June 20, 2014 the Company, as plaintiff finalized and executed a settlement agreement with PerkinElmer, Inc., and PerkinElmer Health Sciences, Inc. (formerly known as PerkinElmer Life Sciences, Inc.) (together, “PerkinElmer”), with respect to an action between the Company and PerkinElmer before the U.S. District Court, Southern District of New York, Case No 03-CV-3817. PerkinElmer paid $7.0 million in escrow pursuant to the agreement because of a former counsel’s motion requesting a charging lien for fees allegedly owed for past services rendered to the Company. Because the settlement proceeds are held in escrow, the Company did not include the settlement or any additional amounts which may be payable to the attorney in the financial statements as of and for the fiscal year ended July 31, 2014 or for the six months ended January 31, 2015.

As previously disclosed, in 2012, the Company received a Subpoena Duces Tecum (the “Subpoena”) from the Department of Health and Human Services, Office of Inspector General (“OIG”). The Subpoena was issued as part of an investigation being conducted by the US Attorney’s Office for the Eastern District of New York in conjunction with the OIG. While a number of potential issues were raised initially by the government, the investigation came to focus primarily on an alleged failure to collect diagnosis codes from physicians who ordered tests through Enzo Clinical Labs. The time period initially covered by the investigation was from 2004 through 2011. In response to the Subpoena, the Company cooperated with the government. On September 22, 2014, the Company and the U.S. Department of Justice reached a settlement agreement to resolve this matter, in substantive form as disclosed in the Company’s fiscal quarter ended April 30, 2014. During the quarter ended April, 30, 2014, the Company recorded a

19

charge of $2.0 million in the statement of operations under legal settlements, net within the Clinical Labs segment. The settlement amount will be paid with interest over a five-year period. As of January 31, 2015, the Company carried a balance of $0.4 million as other current liabilities and $1.2 million as a non-current liability. Under certain circumstances, the Company may be required to accelerate payments and/or pay up to an additional $1.5 million based upon (i) a favorable recovery and collection related to the judgment in the Life Technologies matter discussed above, (ii) receipt of additional capital greater than $10.0 million in a fiscal year (in that case, the Company is required to pay 20% of any amount over $10.0 million plus interest, or (iii) sale of the Company. The final settlement covers the time period 2004-2014.

The Company is party to other claims, legal actions, complaints, and contractual disputes that arise in the ordinary course of business. The Company believes that any liability that may ultimately result from the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on its financial position or results of operations

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes and other information included elsewhere in this Quarterly Report on Form 10-Q.

Forward-Looking Statements

Our disclosure and analysis in this report, including but not limited to the information discussed in this Item 2, contain forward-looking information about our Company’s financial results and estimates, business prospects and products in research and development that involve substantial risks and uncertainties. From time to time, we also may provide oral or written forward-looking statements in other materials we release to the public. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historic or current facts. They use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “will”, and other words and terms of similar meaning in connection with any discussion of future operations or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, interest rates, foreign currency rates, intellectual property matters, the outcome of contingencies, such as legal proceedings, and financial results.

We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. As a result, investors are cautioned not to place undue reliance on any of our forward-looking statements. Investors should bear this in mind as they consider forward-looking statements. We do not assume any obligation to update or revise any forward-looking statement that we make, even if new information becomes available or other events occur in the future. We are also affected by other factors that may be identified from time to time in our filings with the Securities and Exchange Commission, some of which are set forth in Item 1A - Risk Factors in our Form 10-K filing for the July 31, 2014 fiscal year. You are advised to consult any further disclosures we make on related subjects in our Forms 10-Q, 8-K and 10-K reports to the Securities and Exchange Commission. Although we have attempted to provide a list of important factors which may affect our business, investors are cautioned that other factors may prove to be important in the future and could affect our operating results. You should understand that it is not possible to predict or identify all such factors or to assess the impact of each factor or combination of factors on our business. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

Overview

Enzo Biochem, Inc. (the “Company” “we”, “our” or “Enzo”) is a growth-oriented integrated life sciences and biotechnology company focused on harnessing biological processes to develop research tools, diagnostics and therapeutics and serves as a provider of test services, including esoteric tests, to the medical community. Since our founding in 1976, our strategic focus has been on the development of enabling technologies in research, development, manufacture, licensing and marketing of innovative health care products, platforms and services based on molecular and cellular technologies. Our pioneering work in genomic analysis coupled with our extensive patent estate and enabling platforms have strategically positioned the Company to play an important role in the rapidly growing life sciences and molecular medicine marketplaces.

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In the course of our research and development activities, we have built a substantial portfolio of intellectual property assets, comprising 149 key issued patents worldwide, and over 230 pending patent applications, along with extensive enabling technologies and platforms.

We are comprised of three operating segments, of which the Therapeutics and Life Sciences segments have evolved out of our core competencies involving: the use of nucleic acids as informational molecules and the use of compounds for immune modulation and augmented by the previous acquisitions of a number of related companies. The Company’s Enzo Clinical Labs and Enzo Life Sciences reporting units, as described below, are affected by different US and global economic conditions which are included in Item 1A, Risk Factors in our Form 10-K filing for the July 31, 2014 fiscal year.

Below are brief descriptions of each of our operating segments (See Note 12 in the Notes to Consolidated Financial Statements):

Enzo Clinical Labs is a regional clinical laboratory serving the greater New York, New Jersey and Eastern Pennsylvania medical communities. The Company believes having clinical diagnostic services allows us to capitalize firsthand on our extensive advanced molecular and cytogenetic capabilities and the broader trends in predictive and personalized diagnostics. We offer a menu of routine and esoteric clinical laboratory tests or procedures used in general patient care by physicians to establish or support a diagnosis, monitor treatment or medication, or search for an otherwise undiagnosed condition. We operate a full-service clinical laboratory in Farmingdale, New York, a network of approximately 35 patient service centers throughout greater New York, New Jersey and Eastern Pennsylvania, a standalone “stat” or rapid response laboratory in New York City, and a full-service phlebotomy and an in-house logistics department. Payments for clinical laboratory testing services are made by the Medicare program, healthcare insurers and patients.

The Clinical Lab reporting unit is impacted by various risk factors, including among others, reduced reimbursements from third party payers for testing performed and from recent health care legislation. Despite the growth we have experienced, there can be no assurance future growth can be achieved. The introduction of new molecular and esoteric tests is expected to increase our revenue per test and could offset impacts from the above factors.

Enzo Life Sciences manufactures, develops and markets products and tools to life sciences, drug development and clinical research customers world-wide and has amassed a large patent and technology portfolio. Enzo Life Sciences, Inc. is a recognized leader in labeling and detection technologies across research and diagnostic markets. Our strong portfolio of proteins, antibodies, peptides, small molecules, labeling probes, dyes and kits, many of which are proprietary, provides life science researchers tools for target identification/validation, high content analysis, gene expression analysis, nucleic acid detection, protein biochemistry and detection, and cellular analysis. We are internationally recognized and acknowledged as a leader in manufacturing, in-licensing, and commercialization of over 9,000 of our own products and in addition distribute over 40,000 products made by over 40 other original manufacturers. Our strategic focus is directed to innovative high quality research reagents and kits in the primary key research areas of genomics, cellular analysis, small molecule chemistry, protein homeostasis and epigenetics and immunoassays and assay development. The segment is an established source for a comprehensive panel of products to scientific experts in the fields of cancer, cardiovascular disease, neurological disorders, diabetes and obesity, endocrine disorders, infectious and autoimmune disease, hepatotoxicity and renal injury.

Enzo Therapeutics is a biopharmaceutical venture that has developed multiple novel approaches in the areas of gastrointestinal, infectious, ophthalmic and metabolic diseases, many of which are derived from the pioneering work of Enzo Life Sciences. Enzo Therapeutics has focused its efforts on developing treatment regimens for diseases and conditions in which current treatment options are ineffective, costly, and/or cause unwanted side effects. This focus has generated a clinical and preclinical pipeline, as well as more than 95 patents and patent applications.

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Results of Operations
Three months ended January 31, 2015 compared to January 31, 2014
(in 000s)

Comparative Financial Data for the Three Months Ended January 31,

Revenues:	2015			2014			Increase (Decrease)			% Change
Clinical laboratory services	$	14,725		$	13,848		$	877			6	%
Product revenues		7,723			8,054			(331	)		(4	)
Royalty and license fee income		644			1,026			(382	)		(37	)
Total revenues		23,092			22,928			164			1
Operating expenses:
Cost of clinical laboratory services		9,246			9,292			(46	)		—
Cost of product revenues		3,818			3,865			(47	)		(1	)
Research and development		834			832			(2	)		—
Selling, general, and administrative		9,670			10,084			(414	)		(4	)
Provision for uncollectible accounts receivable		601			912			(311	)		(34	)
Legal fee expense		2,804			1,496			1,308			87
Total operating expenses		26,973			26,481			492			2
Operating loss		(3,881	)		(3,553	)		(328)			9
Other income (expense):
Interest		(49	)		(52	)		3			6
Other		(17	)		15			(32	)		**
Foreign exchange (loss) gain		(259	)		20			(279	)		**
Loss before income taxes	$	(4,206	)	$	(3,570	)	$	(636	)		(18	)

** not meaningful

Consolidated Results:

The “2015 period” and the “2014 period” refer to the three months ended January 31, 2015 and 2014, respectively.

Clinical laboratory services revenues for the 2015 period were $14.7 million compared to $13.8 million in the 2014 period, an increase of $0.9 million or 6%. The increase was driven by incremental growth in high value molecular testing.

Product revenues for the 2015 period were $7.7 million compared to $8.1 million in the 2014 period, a decrease of $0.3 million or 4%. The decrease was primarily due to the negative impact of translating revenues denominated in the euro, pound sterling and Swiss franc. During the 2015 period, each of these currencies depreciated versus the US dollar. Excluding the impact of foreign exchange translation, revenues in the 2015 period was essentially unchanged versus the 2014 period.

Royalty and license fee income for the 2015 period was $0.6 million compared to $1.0 million in the 2014 period, a decrease of $0.4 million or 37%. Royalties are primarily earned from the reported sales of Qiagen products subject to a license agreement. Qiagen has experienced declines in its US sales of HPV products which in turn reduces our royalty income. There are no direct expenses relating to royalty and licensing income.

The cost of clinical laboratory services during the 2015 period was $9.2 million compared to $9.3 million in the 2014 period, a decrease of $0.1 million.

The cost of product revenues during both the 2015 and 2014 periods was $3.8 million. Gross profit margins in the 2015 and 2014 periods were 51% and 52% respectively, essentially unchanged.

Research and development expenses were approximately $0.8 million during both the 2015 and 2014 periods. Higher expenses in the Life Sciences segment offset lower expenses in the Therapeutics segment.

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Selling, general and administrative expenses were $9.7 million during the 2015 period and $10.1 million during the 2014 period, a decrease of $0.4 million or 4%. In the Enzo Life Sciences segment, selling, general and administrative decreased $0.6 million due to the effect of business realignments occurring in fiscal 2014 resulting in lower payroll and related costs, lower depreciation and amortization, and lower marketing costs. Other segment selling, general and administrative increased $0.1 million, primarily due to salary and related costs and professional and other fees. The Clinical Lab segment selling, general and administrative also increased $0.1 million.

The provision for uncollectible accounts receivable, primarily related to the Clinical Labs segment, was $0.6 million for the 2015 period as compared to $0.9 million in the 2014 period, a decrease of $0.3 million or 34%. The decrease is primarily due to improved collection procedures in the Clinical Labs segment.

Legal fee expense was $2.8 million during the 2015 period compared to $1.5 million in the 2014 period, an increase of $1.3 million or 87% due to increased legal fees and related costs associated with patent litigation.

During the 2015 period, the loss on foreign exchange transactions was $0.3 million as compared to an insignificant gain in the 2014 period, resulting in an unfavorable change of $0.3 million. The Company has loans and receivables with its foreign subsidiaries which may be denominated in US dollars or a foreign currency. When re-measuring these amounts into the respective entities’ functional currency, the Company recognizes a loss if those foreign currencies, including the Swiss Franc, Euro and British pound depreciate relative to the US dollar during the period and a gain if those foreign currencies appreciate relative to the US dollar. The loss during the 2015 period was due to the Euro and British pound depreciation versus the US dollar of 10% and 5% respectively, partially offset by a 4% appreciation of the Swiss franc.

Segment Results

Clinical Labs

The Clinical Labs segment incurred a loss of $0.3 million before income taxes in the 2015 period as compared to a loss of $1.5 million in the 2014 period, an improvement of $1.2 million. Revenue from laboratory services increased by $0.9 million due to growth in high value molecular testing. The 2015 period gross profit of $5.5 million increased $0.9 million as a result of the higher revenues and ongoing process improvement resulting in a slight decrease in the costs of services. The provision for uncollectible accounts receivable decreased by $0.3 million due to continued process review and improvement.

Life Sciences

The Life Sciences segment’s income before taxes was $1.0 million for the 2015 period as compared to $1.4 million for the 2014 period, a decrease of $0.3 million. The segment’s gross profit was $4.5 million in the 2015 period, as compared $5.2 million in the 2014 period, a decrease of $0.7 million due to the $0.4 million decrease in royalty and license fee income, and the decline in product revenues. The segment’s selling, general and administrative expense decreased $0.6 million due to the effect of business realignments occurring in fiscal 2014 resulting in lower payroll and related costs, lower depreciation and amortization, and lower marketing costs. Due to the depreciation of foreign currencies versus the US dollar, including the Euro and British pound during the 2015 period, the foreign currency loss was $0.3 million compared to a slight gain in the 2014 period, resulting in an unfavorable change of $0.3 million.

Therapeutics

Therapeutics loss before income taxes was approximately $0.2 million in the 2015 period and $0.3 million in the 2014 period, due to lower personnel costs.

Other

The Other loss before taxes in the 2015 period was approximately $4.7 million as compared to $3.1 million in the 2014 period, an increase of $1.6 million primarily from the increase in legal fee expense and related costs associated with patent litigation.

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Results of Operations
Six months ended January 31, 2015 as compared to January 31, 2014
(in 000s)

	2015			2014			Increase (Decrease)			% Change
Revenues:
Clinical laboratory services	$	30,547		$	28,707		$	1,840			6	%
Product revenues		15,725			15,717			8			—
Royalty and license fee income		1,644			2,637			(993	)		(38	)
Total revenues		47,916			47,061			855			2
Operating expenses:
Cost of clinical laboratory services		19,376			19,001			375			2
Cost of product revenues		7,513			7,712			(199	)		(3	)
Research and development		1,625			1,649			(24	)		(1	)
Selling, general, and administrative		19,955			20,612			(657	)		(3	)
Provision for uncollectible accounts receivable		1,142			1,784			(642	)		(36	)
Legal		5,270			2,877			2,393			83
Total operating expenses		54,881			53,635			1,246			2
Operating loss		(6,965	)		(6,574	)		(391	)		6
Other income (expense):
Interest		(118	)		(114	)		(4	)		(4	)
Other		2			76			(74	)		**
Foreign currency gain		(731	)		317			(1,048	)		**
Loss before income taxes	$	(7,812	)	$	(6,295	)	$	(1,517	)		(24	)

** not meaningful

Consolidated Results:

The “2015 period” and the “2014 period” refer to the six months ended January 31, 2015 and 2014, respectively.

Clinical laboratory services revenues for the 2015 period were $30.5 million compared to $28.7 million in the 2014 period. The 2015 period’s increase over the 2014 period was $1.8 million or 6% due to growth in high value molecular testing.

Product revenues in both the 2015 and 2014 periods were $15.7 million. Revenues in the 2015 period were adversely affected by the strengthening of the US dollar versus the Euro, British pound and Swiss franc which when translated to US dollars adversely affected product revenues by approximately $0.3 million. The gross profit margin was 52% in the 2015 period versus 51% in the 2014 period, due to higher sales volume of our proprietary drug discovery and genomics kits, partially offset by declines in our non-proprietary product lines for which royalties are paid.

Royalty and license fee income during the 2015 period was $1.6 million compared to $2.6 million in the 2014 period a decrease of $1.0 million or 38%. Royalties are primarily earned from the reported sales of Qiagen products subject to a license agreement. Qiagen has experienced declines in its US sales of HPV products which in turn reduces our royalty income. There are no direct expenses relating to royalty and licensing income.

The cost of clinical laboratory services during the 2015 period was $19.4 million as compared to $19.0 million in the 2014 period, an increase of $0.4 million or 2%.

The cost of product revenues during the 2015 period was $7.5 million compared to $7.7 million in the 2014 period, a decrease of $0.2 million or 3% and was positively impacted by an increase in sales of manufactured products at higher margins.

Research and development expenses were approximately $1.6 million during both the 2015 and 2014 periods. Higher expenses in the Life Sciences segment offset lower expenses in the Therapeutics segment

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The Company’s selling, general and administrative expenses were approximately $20.0 million during the 2015 period and $20.6 million during the 2014 period, a decrease of $0.6 million or 3%. The Enzo Life Sciences segment selling, general and administrative decreased by $1.0 million due to the positive effects from the business realignments occurring in fiscal 2014 resulting in lower payroll, depreciation and amortization, and marketing costs. The Other selling general and administrative increased by $0.2 million, primarily due to payroll related costs of $0.2 million. The Clinical Lab segment selling general and administrative increased by $0.1 million.

The provision for uncollectible accounts receivable, primarily related to the Clinical Labs segment, was $1.2 million for the 2015 period as compared to $1.8 million in the 2014 period, a decrease of $0.6 million or 36% and is due to improved collection procedures in the Clinical Labs segment.

Legal expense was $5.3 million in the 2015 period compared to $2.9 million in the 2014 period, an increase of $2.4 million or 83% due to increased legal fees and related costs associated with patent litigation.

Interest expense was $0.1 million during both the 2015 and 2014 periods and is primarily due to interest incurred on the credit agreement.

During the 2015 period, the loss on foreign exchange transactions was $0.7 million as compared a gain in the 2014 period of $0.3 million, an unfavorable change of $1.0 million. The Company has loans and receivables with its foreign subsidiaries which may be denominated in US dollars or a foreign currency. When re-measuring these amounts into the respective entities’ functional currency, the Company recognizes a loss if those foreign currencies, including the Swiss Franc, Euro and British pound depreciate relative to the US dollar during the period and a gain if those foreign currencies appreciate relative to the US dollar. During the 2015 period, those currencies depreciated between 1.6% and 15.5% relative to the US dollar. During the 2014 period, those currencies appreciated relative to the US dollar.

Segment Results

Clinical Labs

Clinical laboratory services revenues for the 2015 period were $30.5 million compared to $28.7 million in the 2014 period. The increase over the 2014 period was $1.8 million or 6% due to growth in high value molecular testing. The cost of clinical laboratory services during the 2015 period was $19.4 million as compared to $19.0 million in the 2014 period, an increase of $0.4 million or 2%. The increase was due to increased reference lab expense due to the growth is high value molecular testing. The provision for uncollectible accounts receivable, primarily related to the Clinical Labs segment, was $1.2 million for the 2015 period as compared to $1.8 million in the 2014 period. The decrease is primarily due to an improve collection procedures and process improvement.

Life Sciences

The Life Sciences segment’s income before taxes was $2.2 million for the 2015 period as compared to $3.0 million for the 2014 period, a decrease of $0.8 million. The segment’s gross profit was $9.9 million in the 2015 period, as compared $10.6 million in the 2014 period, a decrease of $0.7 million due primarily to the $1.0 million decrease in royalty and license fee income. The segment’s selling, general and administrative expense decreased $1.0 million due to the effect of business realignments occurring in fiscal 2014 resulting in lower payroll and related costs, lower depreciation and amortization, and lower marketing costs. Due to the depreciation of foreign currencies versus the US dollar, including the Euro and British pound during the 2015 period, the foreign currency loss was $0.7 million compared to a $0.3 million gain in the 2014 period, resulting in an unfavorable change of $1.0 million.

Therapeutics

Therapeutics loss before income taxes was approximately $0.4 million in the 2015 period and $0.6 million in the 2014 period, due to lower personnel costs.

Other

The Other loss before taxes in the 2015 period was approximately $9.2 million as compared to $6.4 million in the 2014 period, an increase of $2.8 million primarily from the increase in legal fee expense and related costs associated with patent litigation.

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Liquidity and Capital Resources

At January 31, 2015, the Company had cash and cash equivalents of $15.3 million of which $0.4 million was in foreign accounts, as compared to cash and cash equivalents of $17.5 million, of which $1.1 million was in foreign accounts at July 31, 2014. It is the Company’s current intent to permanently reinvest foreign funds outside of the United States, and its current plans do not demonstrate a need to repatriate them to fund its United States operations. The Company had working capital of $14.3 million at January 31, 2015 compared to $15.8 million at July 31, 2014. The decrease in working capital of $1.5 million was primarily due to the net loss and changes in net operating assets and liabilities, offset by proceeds from issuance of common stock.

Net cash used in operating activities for the six months ended January 31, 2015 was approximately $6.5 million as compared to $4.7 million for the six months ended January 31, 2014. The increase in the 2015 period of approximately $1.8 million was primarily due to the increase in net loss of $1.5 million and changes in operating assets and liabilities of $0.4 million.

Net cash used in investing activities for the six months ended January 31, 2015 and 2014 was approximately $0.7 million and $0.5 million, respectively.

Net cash provided by financing activities for the six months ended January 31, 2015 was approximately $5.1 million as compared to $3.7 million for the six months ended January 31, 2014. The increase of $1.4 million in fiscal year 2015 was due to higher proceeds from the issuance of common stock of $1.1 million and lower repayments under the Credit Agreement of $0.4 million net.

The Company continues to review all operating units to further reduce annual operating expenditures in fiscal 2015. While operating results at the Life Sciences and Clinical Labs segments continue to improve there can be no assurance that Life Sciences and Clinical Labs will be able to sustain these results and if not, it may be required for the Life Sciences segment to record additional impairments of its intangible assets. The Company believes that its current cash and cash equivalents level, utilization of the Controlled Equity Offering program disclosed in Note 9 to the financial statements, which resulted in net proceeds of $5.3 million for the six months ended January 31, 2015 and $11.5 million during the 2014 fiscal year, and available borrowings under the aforementioned Revolving Loan and Security Agreement disclosed in Note 6 to the financial statements for the six months ended January 31, 2015 are sufficient for its foreseeable liquidity and capital resource needs over the next twelve (12) months, although there can be no assurance that future events will not alter such view. Although there can be no assurances, in the event additional capital is required, the Company believes it has the ability to raise additional funds through equity offerings or other sources of funds. Macroeconomic conditions could limit our ability to successfully execute our business plans and therefore adversely affect our liquidity plans.

See our Form 10-K for the fiscal year ended July 31, 2014 for Forward Looking Cautionary Statements.

Contractual Obligations

There have been no material changes to our Contractual Obligations as reported in our Form 10-K for the fiscal year ended July 31, 2014.

Management is not aware of any material claims, disputes or settled matters concerning third party reimbursement that would have a material effect on our financial statements, except as disclosed in Note 13 to the Consolidated Financial Statement.

Off-Balance Sheet Arrangements

The Company does not have any “off-balance sheet arrangements” as such term is defined in Item 303(a)(4) of Regulation S-K.

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Critical Accounting Policies

The Company’s discussion and analysis of its financial condition and results of operations are based upon Enzo Biochem, Inc.’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates and judgments also affect related disclosure of contingent assets and liabilities.

On an on-going basis, we evaluate our estimates, including those related to contractual expense, allowance for uncollectible accounts, inventory, intangible assets and income taxes. The Company bases its estimates on experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Product revenues

Revenues from product sales are recognized when the products are shipped and title transfers, the sales price is fixed or determinable and collectability is reasonably assured.

Royalties

Royalty revenues are recorded in the period earned. Royalties received in advance of being earned are recorded as deferred revenues.

Revenues – Clinical laboratory services

Revenues from Clinical Labs are recognized upon completion of the testing process for a specific patient and reported to the ordering physician. These revenues and the associated accounts receivable are based on gross amounts billed or billable for services rendered, net of a contractual adjustment, which is the difference between amounts billed to payers and the expected approved reimbursable settlements from such payers.

The following table represents the clinical laboratory segment’s net revenues and percentages by revenue category:

	Three months ended January 31, 2015				Three months ended January 31, 2014
Revenue category
Third-party payer	$	8,046	55	%	$	6,225	45	%
Medicare		3,024	21			3,052	22
Patient self-pay		2,558	17			3,265	24
HMO’s		1,098	7			1,306	9
Total	$	14,726	100	%	$	13,848	100	%
	Six months ended January 31, 2015				Six months ended January 31, 2014
Revenue category
Third-party payer	$	16,765	55	%	$	13,242	46	%
Medicare		6,243	20			6,315	22
Patient self-pay		5,220	17			6,409	22
HMO’s		2,319	8			2,741	10
Total	$	30,547	100	%	$	28,707	100	%

The Company provides services to certain patients covered by various third-party payers, including the Federal Medicare program. Laws and regulations governing Medicare are complex and subject to interpretation for which action for noncompliance includes fines, penalties and exclusion from the Medicare programs. See Note 13 in the Notes to Consolidated Financial Statements.

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Other than the Medicare program, one provider whose programs are included in the “Third-party payers” and “Health Maintenance Organizations” (“HMO’s”) categories represents approximately 26% and 24% of the Clinical Labs segment net revenue for the three months ended January 31, 2015 and 2014 respectively, and 26% and 23% for the six months ended January 31, 2015 and 2014, respectively.

Contractual Adjustment

The Company’s estimate of contractual adjustment is based on significant assumptions and judgments, such as its interpretation of payer reimbursement policies, and bears the risk of change. The estimation process is based on the experience of amounts approved as reimbursable and ultimately settled by payers, versus the corresponding gross amount billed to the respective payers. The contractual adjustment is an estimate that reduces gross revenue, based on gross billing rates, to amounts expected to be approved and reimbursed. Gross billings are based on a standard fee schedule we set for all third party payers, including Medicare, HMO’s and managed care. The Company adjusts the contractual adjustment estimate quarterly, based on its evaluation of current and historical settlement experience with payers, industry reimbursement trends, and other relevant factors.

The other relevant factors that affect our contractual adjustment include the monthly and quarterly review of: 1) current gross billings and receivables and reimbursement by payer, 2) current changes in third party arrangements and 3) the growth of in-network provider arrangements and managed care plans specific to our Company.

Our clinical laboratory business is primarily dependent upon reimbursement from third-party payers, such as Medicare (which principally serves patients 65 and older) and insurers. We are subject to variances in reimbursement rates among different third-party payers, as well as constant changes of reimbursement rates. Changes that decrease reimbursement rates or coverage would negatively impact our revenues. The number of individuals covered under managed care contracts or other similar arrangements has grown over the past several years and may continue to grow in the future. In addition, Medicare and other government healthcare programs continue to shift to managed care. These trends will continue to reduce our revenues.

During the three months ended January 31, 2015 and 2014, the contractual adjustment percentages, determined using current and historical reimbursement statistics, were 85.2% and 85.6%, respectively, of gross billings. During the six months ended January 31, 2015 and 2014, the contractual adjustment percentages, determined using current and historical reimbursement statistics, were 85.3%and 85.4%, respectively. The Company believes a decline in reimbursement rates or a shift to managed care or similar arrangements may be offset by the positive impact of an increase in the number of tests we perform. However, there can be no assurance that we can increase the number of tests we perform or that if we do increase the number of tests we perform, that we can maintain that higher number of tests performed, or that an increase in the number of tests we perform would result in increased revenue.

The Company estimates (by using a sensitivity analysis) that each 1% point change in the contractual adjustment percentage could result in a change in clinical laboratory services revenues of approximately $2.1 million and $2.0 million for the six months ended January 31, 2015 and 2014, and a change in the net accounts receivable of approximately $0.5 million as of January 31, 2015.

Our clinical laboratory financial billing system records gross billings using a standard fee schedule for all payers and does not record contractual adjustment by payer at the time of billing. Adjustments to our standard fee schedule will impact the contractual adjustment recorded. Therefore, we are unable to quantify the effect of contractual adjustment recorded during the current period that relates to revenue recorded in a previous period. However, we can reasonably estimate our contractual adjustment to revenue on a timely basis based on our quarterly review process, which includes:

• an analysis of industry reimbursement trends;

• an evaluation of third-party reimbursement rates changes and changes in reimbursement arrangements with third-party payers;

• a rolling monthly analysis of current and historical claim settlement and reimbursement experience statistics with payers;

• an analysis of current gross billings and receivables by payer.

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Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are reported at realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period of the related revenue.

The following is a table of the Company’s net accounts receivable by segment. The Clinical Labs segment’s net receivables are detailed by billing category and as a percent to its total net receivables. At January 31, 2015 and July 31, 2014, approximately 60%, of the Company’s net accounts receivable relates to its Clinical Labs business, which operates in the New York, New Jersey, and Eastern Pennsylvania medical communities.

The Life Sciences segment’s accounts receivable, of which $1.3 million or 27% and $1.2 million or 23% represents foreign receivables as of January 31, 2015 and July 31, 2014, includes royalty receivables of $0.8 and $1.0 million, as of January 31, 2015 and July 31, 2014, respectively, from Qiagen Corporation.

Net accounts receivable

Billing category	As of January 31, 2015				As of July 31, 2014
Clinical Labs
Third party payers	$	3,129	44	%	$	3,499	46	%
Patient self-pay		2,498	35			2,193	29
Medicare		1,221	17			1,558	21
HMO’s		271	4			280	4
Total Clinical Labs		7,119	100	%		7,530	100	%
Total Life Sciences		4,676				4,940
Total accounts receivable	$	11,795			$	12,470

Changes in the Company’s allowance for doubtful accounts are as follows:

	January 31, 2015			July 31, 2014
Beginning balance	$	2,142		$	2,707
Provision for doubtful accounts		1,142			3,063
Write-offs, net		(1,304	)		(3,628	)
Ending balance	$	1,980		$	2,142

For the Clinical Labs segment, the allowance for doubtful accounts represents amounts that the Company does not expect to collect after the Company has exhausted its collection procedures. The Company estimates its allowance for doubtful accounts in the period the related services are billed and adjusts the estimate in future accounting periods as necessary. It bases the estimate for the allowance on the evaluation of historical collection experience, the aging profile of accounts receivable, the historical doubtful account write-off percentages, payer mix, and other relevant factors.

The allowance for doubtful accounts includes the balances, after receipt of the approved settlements from third party payers, for the insufficient diagnosis information received from the ordering physician which result in denials of payment, and the uncollectible portion of receivables from self payers, including deductibles and copayments, which are subject to credit risk and patients’ ability to pay. As of January 31, 2015, the allowance for doubtful accounts represented 14.4% of total gross accounts receivable, as compared to 14.7% as of July 31, 2014. When estimating the allowance, the Company considers the balance of gross receivables for self-pay patients outstanding 60 days or less, which indicates the quality and overall aging of those receivables which are impacted by the execution of our billing and collection procedures.

During the six months ended January 31, 2015 and 2014, the Company determined an allowance for doubtful accounts less than 210 days and wrote off accounts receivable over 210 days, as it assumed those accounts are uncollectible, except for certain fully reserved balances, principally related to certain third party payers and Medicare. These accounts have not been written off because the payer’s filing date deadline has not occurred or the collection process has not been exhausted. The Company’s collection experience on Medicare receivables beyond 210 days has been insignificant. The Company adjusts the historical collection analysis for recoveries, if any, on an ongoing basis.

29

The Company’s ability to collect outstanding receivables from third party payers is critical to its operating performance and cash flows. The primary collection risk lies with patients initially determined to have primary insurance and patients for whom primary insurance has paid but a co-pay or deductible portion remains outstanding. The Company also assesses the current state of its billing functions in order to identify any known collection or reimbursement issues in order to assess the impact, if any, on the allowance estimates, which involves judgment.

The Company believes that the collectability of its receivables is directly linked to the quality of its billing processes, most notably, those related to obtaining the correct information in order to bill effectively for the services provided. Should circumstances change (e.g. shift in payer mix, decline in economic conditions or deterioration in aging of receivables), our estimates of net realizable value of receivables could be reduced by a material amount.

Billing for laboratory services is complicated because of many factors, especially: the differences between our standard gross fee schedule for all payers and the reimbursement rates of the various payers we deal with, disparity of coverage and information requirements among the various payers, and disputes with payers as to which party is responsible for reimbursement.

The following table indicates the Clinical Labs aged gross receivables by payer group which is prior to adjustment to gross receivables for: 1) contractual adjustment, 2) fully reserved balances not yet written off, and 3) other revenue adjustments.

As of January 31, 2015	Total		%		Third Party Payers		%		Medicare Payers		%		Self Pay			%		HMO’s		%
1-30 days	$	26,495	57	%	$	16,323	56	%	$	4,323	58	%	$	2,648		44	%	$	3,201	94	%
31-60 days		4,916	11	%		2,436	8	%		777	10	%		1,672		28	%		31	1	%
61-90 days		3,740	8	%		1,858	6	%		566	8	%		1,288		21	%		28	1	%
91-120 days		2,801	6	%		1,751	6	%		498	7	%		511		8	%		41	1	%
121-150 days		1,762	4	%		1,484	5	%		242	3	%		(1	)	0	%		37	1	%
Greater than 150 days*		6,588	14	%		5,504	19	%		1,062	14	%		(59	)	-1	%		81	2	%
Totals	$	46,302	100	%	$	29,356	100	%	$	7,468	100	%	$	6,059		100	%	$	3,419	100	%
As of July 31, 2014	Total		%		Third Party Payers		%		Medicare Payers		%		Self Pay			%		HMO’s		%
1-30 days	$	29,762	58	%	$	17,786	55	%	$	5,475	57	%	$	2,871		48	%	$	3,630	96	%
31-60 days		5,689	11	%		3,210	10	%		819	9	%		1,624		27	%		36	1	%
61-90 days		4,541	9	%		2,519	8	%		826	9	%		1,172		20	%		24	1	%
91-120 days		3,669	7	%		2,140	7	%		1,093	11	%		409		7	%		27	1	%
121-150 days		2,218	4	%		1,690	5	%		514	5	%		(3	)	0	%		17	0	%
Greater than 150 days**		5,672	11	%		4,841	15	%		888	9	%		(109	)	-2	%		52	1	%
Totals	$	51,551	100	%	$	32,186	100	%	$	9,615	100	%	$	5,964		100	%	$	3,786	100	%

*	Total includes $3,435 fully reserved over 210 days as of January 31, 2015.
**	Total includes $2,788 fully reserved over 210 days as of July 31, 2014.

Income Taxes

The Company accounts for income taxes under the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The liability method requires that any tax benefits recognized for net operating loss carry forwards and other items be reduced by a valuation allowance where it is not more likely than not the benefits will be realized in the foreseeable future. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

30

It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected.

Inventory

The Company values inventory at the lower of cost (first-in, first-out) or market. Work-in-process and finished goods inventories consist of material, labor, and manufacturing overhead. Write downs of inventories to market value are based on a review of inventory quantities on hand and estimated sales forecasts based on sales history and anticipated future demand. Unanticipated changes in demand could have a significant impact on the value of our inventory and require additional write downs of inventory which would impact our results of operations.

Goodwill and Intangible Assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Intangible assets (exclusive of patents), arose primarily from acquisitions, and primarily consist of customer relationships, trademarks, licenses, and website and database content. Finite-lived intangible assets are amortized according to their estimated useful lives, which range from 4 to 15 years. Patents represent capitalized legal costs incurred in pursuing patent applications. When such applications result in an issued patent, the related capitalized costs are amortized over a ten year period or the life of the patent, whichever is shorter, using the straight-line method. The Company reviews its issued patents and pending patent applications, and if it determines to abandon a patent application or that an issued patent no longer has economic value, the unamortized balance in deferred patent costs relating to that patent is immediately expensed.

The Company tests goodwill and long-lived assets annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. In assessing goodwill and long-lived assets for impairment, the Company has the option to first perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely that not that the fair value of a reporting unit is less than its carrying amount, the Company is not required to perform any additional tests in assessing goodwill and long-lived assets for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform the first step of a two-step quantitative impairment review process. The first step of the quantitative impairment test requires the identification of the reporting units and comparison of the fair value of each of these reporting units to their respective carrying value. If the carrying value of the reporting unit is less than its fair value, no impairment exists and the second step is not performed. If the carrying value of the reporting unit is higher than its fair value, the second step must be performed to compute the amount of the goodwill impairment, if any. In the second step, the impairment is computed by comparing the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized for the excess

Accrual for Self-funded Medical

Accruals for self-funded medical insurance are determined based on a number of assumptions and factors, including historical payment trends, claims history and current estimates. These estimated liabilities are not discounted. If actual trends differ from these estimates, the financial results could be impacted.

31

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk from changes in foreign currency exchange rates resulting from acquisitions with foreign locations (See Item 1A. Risk Factors section of the Form 10-K for the fiscal year ended July 31, 2014) that could impact our results of operations and financial position. We do not currently engage in any hedging or market risk management tools.

Foreign Currency Exchange Rate Risk

The financial reporting of our non-U.S. subsidiaries is denominated in currencies other than the U.S. dollar. Since the functional currency of our non-U.S. subsidiaries is the local currency, foreign currency translation adjustments are accumulated as a component of accumulated other comprehensive income in stockholders’ equity. Assuming a hypothetical increase of 10% in the value of the U.S. dollar versus foreign currencies at January 31, 2015, our assets and liabilities would decrease by $0.6 million and $0.1 million, respectively, and our net sales and net earnings (loss) would decrease by $1.0 million and $0.2 million, respectively, on an annual basis.

We also maintain intercompany balances and loans with subsidiaries in different local currencies. These amounts are at risk of foreign exchange losses if exchange rates fluctuate. Assuming a hypothetical increase of 10% in the value of the U.S. dollar versus foreign currencies, our pre-tax earnings (loss) would be unfavorably impacted by approximately $0.8 million on an annual basis.

Interest Rate Risk

We are exposed to interest rate risk with our variable rate Credit Agreement which bears interest at the three month LIBOR with a floor of 1.25% plus 4% per annum. A 3% change in the LIBOR rate would impact our interest expense by $0.1 million.

As of January 31, 2015, we have fixed interest rate financing on transportation and equipment leases.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company’s management conducted an evaluation (as required under Rules 13a-15(b) and 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of the Company’s “disclosure controls and procedures” (as such term is defined under the Exchange Act), under the supervision and with the participation of the principal executive officer and the principal financial officer. Based on this evaluation, the principal executive officer and the principal financial officer concluded that the Company’s disclosure controls and procedures are effective as of the end of the period covered by this report. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports.

(b) Changes in Internal Controls over Financial Reporting

There was no change in the Company’s internal controls over financial reporting during the fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

32

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

There have been no other material developments with respect to previously reported legal proceedings discussed in the annual report on Form 10-K for the fiscal year ended July 31, 2014 filed with the Securities and Exchange Commission, other than as noted in Note 13 to the Consolidated Financial Statements as of January 31, 2015.

Item 1A. Risk Factors

There have been no material changes from the risk factors disclosed in Part 1, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014.

Item 6. Exhibits

Exhibit No.	Exhibit
31.1	Certification of Elazar Rabbani, Ph.D. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Barry Weiner pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Elazar Rabbani, Ph.D. pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Barry Weiner pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101. INS*	XBRL Instance Document
101. SCH*	XBRL Taxonomy Extension Schema Document
101. CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

*XBRL (Extensible Business Reporting Language) information is being furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ENZO BIOCHEM, INC.

(Registrant)

Date: March 12, 2015	by:	/s/ Barry Weiner
		President, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director

33

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Elazar Rabbani, Ph.D., certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Enzo Biochem, Inc. (the “registrant”).
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(e) and 15d – 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 12, 2015

By:	/s/ Elazar Rabbani, Ph.D.
	Elazar Rabbani, Ph.D.
	Chairman of the Board, Chief Executive Officer and Secretary

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Barry Weiner, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Enzo Biochem, Inc. (the “registrant”).
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(e) and 15d – 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 12, 2015

By:	/s/ Barry Weiner
	Barry Weiner
	President, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
TITLE 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Enzo Biochem, Inc., and Subsidiaries (“the Company”) on Form 10-Q for the period ended January 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Elazar Rabbani, Ph.D., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 12, 2015
	By:	/s/ Elazar Rabbani, Ph.D.
		Elazar Rabbani, Ph.D.
		Chairman of the Board, Chief Executive Officer and Director

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO
TITLE 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Enzo Biochem, Inc., and Subsidiaries (“the Company”) on Form 10-Q for the period ended January 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Barry Weiner, President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 12, 2015
	By:	/s/ Barry Weiner
		Barry Weiner
		President, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director

XML

Other liabilities (Details) - Schedule of other current liabilities (USD $) In Thousands, unless otherwise specified	Jan. 31, 2015	Jul. 31, 2014
Other liabilities (Details) - Schedule of other current liabilities [Line Items]
Other liabilities	$ 1,872	$ 2,313
Accrued Legal Settlement [Member]
Other liabilities (Details) - Schedule of other current liabilities [Line Items]
Other liabilities	1,200	1,600
Capital Lease Obligations [Member]
Other liabilities (Details) - Schedule of other current liabilities [Line Items]
Other liabilities	287	344
Installment Loans [Member]
Other liabilities (Details) - Schedule of other current liabilities [Line Items]
Other liabilities	$ 385	$ 369

XML

Segment reporting (Details) - Schedule of segment reporting information, by segment (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Revenues:
Clinical laboratory services	$ 14,725	$ 13,848	$ 30,547	$ 28,707
Product revenues	7,723	8,054	15,725	15,717
Royalty and license fee income	644	1,026	1,644	2,637
Total revenues	23,092	22,928	47,916	47,061
Operating expenses:
Cost of clinical laboratory services	9,246	9,292	19,376	19,001
Cost of product revenues	3,818	3,865	7,513	7,712
Research and development	834	832	1,625	1,649
Selling, general and administrative	9,670	10,084	19,955	20,612
Provision for uncollectible accounts receivable	601	912	1,142	1,784
Legal fee expense	2,804	1,496	5,270	2,877
Operating income (loss)	(3,881)	(3,553)	(6,965)	(6,574)
Other income (expense)
Other	(17)	15	2	76
Foreign exchange gain (loss)	(259)	20	(731)	317
Share-based compensation included in above:
Share-based compensation	105	109	203	212
Cost of Clinical Laboratory Services [Member] | Clinical Labs [Member]
Share-based compensation included in above:
Share-based compensation	2	2	3	4
Cost of Clinical Laboratory Services [Member] | Consolidated [Member]
Share-based compensation included in above:
Share-based compensation	2	2	3	4
Cost of Clinical Laboratory Services [Member]
Share-based compensation included in above:
Share-based compensation	2	2	3	4
Research and Development Expense [Member] | Life Sciences [Member]
Share-based compensation included in above:
Share-based compensation	1		2	1
Research and Development Expense [Member] | Consolidated [Member]
Share-based compensation included in above:
Share-based compensation	1		2	1
Research and Development Expense [Member]
Share-based compensation included in above:
Share-based compensation	1		2	1
Selling, General and Administrative Expenses [Member] | Clinical Labs [Member]
Share-based compensation included in above:
Share-based compensation	12	9	21	19
Selling, General and Administrative Expenses [Member] | Life Sciences [Member]
Share-based compensation included in above:
Share-based compensation	3	5	3	9
Selling, General and Administrative Expenses [Member] | Other Segments [Member]
Share-based compensation included in above:
Share-based compensation	87	93	174	179
Selling, General and Administrative Expenses [Member] | Consolidated [Member]
Share-based compensation included in above:
Share-based compensation	102	107	198	207
Selling, General and Administrative Expenses [Member]
Share-based compensation included in above:
Share-based compensation	102	107	198	207
Total [Member] | Clinical Labs [Member]
Share-based compensation included in above:
Share-based compensation	14	11	24	23
Total [Member] | Life Sciences [Member]
Share-based compensation included in above:
Share-based compensation	4	5	5	10
Total [Member] | Other Segments [Member]
Share-based compensation included in above:
Share-based compensation	87	93	174	179
Total [Member] | Consolidated [Member]
Share-based compensation included in above:
Share-based compensation	105	109	203	212
Clinical Labs [Member]
Revenues:
Clinical laboratory services	14,725	13,848	30,547	28,707
Total revenues	14,725	13,848	30,547	28,707
Operating expenses:
Cost of clinical laboratory services	9,246	9,292	19,376	19,001
Research and development		3		14
Selling, general and administrative	5,089	4,981	10,157	10,031
Provision for uncollectible accounts receivable	658	920	1,189	1,764
Legal fee expense	41	142	131	290
Total operating expenses	15,034	15,338	30,853	31,100
Operating income (loss)	(309)	(1,490)	(306)	(2,393)
Other income (expense)
Interest	(12)	(11)	(39)	(22)
Other	4	9	6	27
Income (loss) before income taxes	(317)	(1,492)	(339)	(2,388)
Depreciation and amortization included above	357	355	714	710
Share-based compensation included in above:
Capital expenditures	338	103	589	362
Life Sciences [Member]
Revenues:
Product revenues	7,723	8,054	15,725	15,717
Royalty and license fee income	644	1,026	1,644	2,637
Total revenues	8,367	9,080	17,369	18,354
Operating expenses:
Cost of product revenues	3,818	3,865	7,513	7,712
Research and development	635	543	1,183	1,069
Selling, general and administrative	2,704	3,318	5,853	6,813
Provision for uncollectible accounts receivable	(57)	(8)	(47)	20
Legal fee expense	(53)	15	(51)	37
Total operating expenses	7,047	7,733	14,451	15,651
Operating income (loss)	1,320	1,347	2,918	2,703
Other income (expense)
Interest	5	3	7	8
Other	(29)	(6)	(35)	21
Foreign exchange gain (loss)	(259)	20	(731)	317
Income (loss) before income taxes	1,037	1,364	2,159	3,049
Depreciation and amortization included above	555	621	1,113	1,262
Share-based compensation included in above:
Capital expenditures	51	7	64	82
Therapeutics [Member]
Operating expenses:
Research and development	199	286	442	566
Total operating expenses	199	286	442	566
Operating income (loss)	(199)	(286)	(442)	(566)
Other income (expense)
Income (loss) before income taxes	(199)	(286)	(442)	(566)
Depreciation and amortization included above	1	2	2	6
Other Segments [Member]
Operating expenses:
Selling, general and administrative	1,877	1,785	3,945	3,768
Legal fee expense	2,816	1,339	5,190	2,550
Total operating expenses	4,693	3,124	9,135	6,318
Operating income (loss)	(4,693)	(3,124)	(9,135)	(6,318)
Other income (expense)
Interest	(42)	(44)	(86)	(100)
Other	8	12	31	28
Income (loss) before income taxes	(4,727)	(3,156)	(9,190)	(6,390)
Depreciation and amortization included above	22	24	44	49
Consolidated [Member]
Revenues:
Clinical laboratory services	14,725	13,848	30,547	28,707
Product revenues	7,723	8,054	15,725	15,717
Royalty and license fee income	644	1,026	1,644	2,637
Total revenues	23,092	22,928	47,916	47,061
Operating expenses:
Cost of clinical laboratory services	9,246	9,292	19,376	19,001
Cost of product revenues	3,818	3,865	7,513	7,712
Research and development	834	832	1,625	1,649
Selling, general and administrative	9,670	10,084	19,955	20,612
Provision for uncollectible accounts receivable	601	912	1,142	1,784
Legal fee expense	2,804	1,496	5,270	2,877
Total operating expenses	26,973	26,481	54,881	53,635
Operating income (loss)	(3,881)	(3,553)	(6,965)	(6,574)
Other income (expense)
Interest	(49)	(52)	(118)	(114)
Other	(17)	15	2	76
Foreign exchange gain (loss)	(259)	20	(731)	317
Income (loss) before income taxes	(4,206)	(3,570)	(7,812)	(6,295)
Depreciation and amortization included above	935	1,002	1,873	2,027
Share-based compensation included in above:
Capital expenditures	$ 389	$ 110	$ 653	$ 444

XML

Royalty and licensing income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Royalty and licensing income (Details) [Line Items]
Patent Expiration Date			Apr. 24, 2018
Life Sciences [Member]
Royalty and licensing income (Details) [Line Items]
Royalty Revenue	$ 0.6	$ 1.0	$ 1.6	$ 2.6

XML

Goodwill and intangible assets (Details) - Schedule of intangible assets (USD $) In Thousands, unless otherwise specified	Jan. 31, 2015	Jul. 31, 2014
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]
Finite-lived intangible assets, Gross	$ 28,036	$ 28,478
Finite-lived intangible assets, Accumulated Amortization	(20,914)	(20,370)
Finite-lived intangible assets, Net	7,122	8,108
Patents [Member]
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]
Finite-lived intangible assets, Gross	11,027	11,027
Finite-lived intangible assets, Accumulated Amortization	(10,793)	(10,775)
Finite-lived intangible assets, Net	234	252
Customer Relationships [Member]
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]
Finite-lived intangible assets, Gross	12,343	12,602
Finite-lived intangible assets, Accumulated Amortization	(6,943)	(6,565)
Finite-lived intangible assets, Net	5,400	6,037
Website And Acquired Content [Member]
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]
Finite-lived intangible assets, Gross	1,027	1,037
Finite-lived intangible assets, Accumulated Amortization	(1,027)	(1,037)
Licensed Technology And Other [Member]
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]
Finite-lived intangible assets, Gross	511	537
Finite-lived intangible assets, Accumulated Amortization	(422)	(434)
Finite-lived intangible assets, Net	90	103
Trademarks [Member]
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]
Finite-lived intangible assets, Gross	3,128	3,275
Finite-lived intangible assets, Accumulated Amortization	(1,729)	(1,559)
Finite-lived intangible assets, Net	$ 1,398	$ 1,716

XML

Other liabilities (Tables)

6 Months Ended

Jan. 31, 2015

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Schedule of Other Liabilities [Table Text Block]

Other liabilities consist of the following:

	January 31, 2015		July 31, 2014
Accrued legal settlement	$	1,200	$	1,600
Capital lease obligations, net of short term		287		344
Installment loans, net of short term		385		369
	$	1,872	$	2,313

XML

Stockholders' Equity (Details) - Schedule of share-based compensation expense by line item (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Payment Arrangement	$ 105	$ 109	$ 203	$ 212
Cost of Clinical Laboratory Services [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Payment Arrangement	2	2	3	4
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Payment Arrangement	1		2	1
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Payment Arrangement	$ 102	$ 107	$ 198	$ 207

XML

Accrued Liabilities and Other Current Liabilities (Details) - Other current liabilities (USD $) In Thousands, unless otherwise specified	Jan. 31, 2015	Jul. 31, 2014
Accrued Liabilities and Other Current Liabilities (Details) - Other current liabilities [Line Items]
Other Liabilities Current	$ 830	$ 790
Accrued Legal Settlement [Member]
Accrued Liabilities and Other Current Liabilities (Details) - Other current liabilities [Line Items]
Other Liabilities Current	400	400
Installment Loans [Member]
Accrued Liabilities and Other Current Liabilities (Details) - Other current liabilities [Line Items]
Other Liabilities Current	281	241
Capital Lease Obligations [Member]
Accrued Liabilities and Other Current Liabilities (Details) - Other current liabilities [Line Items]
Other Liabilities Current	$ 149	$ 149

XML

Segment reporting (Details)	6 Months Ended
	Jan. 31, 2015
Segment Reporting [Abstract]
Number of Reportable Segments	3

XML

Basis of Presentation

6 Months Ended

Jan. 31, 2015

Disclosure Text Block [Abstract]

Basis of Accounting [Text Block]

Note 1 – Basis of Presentation

The accompanying consolidated financial statements include the accounts of Enzo Biochem, Inc. and its wholly-owned subsidiaries, Enzo Life Sciences, Enzo Clinical Labs, Enzo Therapeutics and Enzo Realty LLC, collectively referred to as the “Company” or “Companies”. The consolidated balance sheet as of January 31, 2015, the consolidated statements of operations and the consolidated statements of comprehensive income (loss) for the three and six months ended January 31, 2015 and 2014, the consolidated statements of cash flows for the six months ended January 31, 2015 and 2014, and the consolidated statement of stockholders’ equity for the six months ended January 31, 2015 are unaudited. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and operating results for the interim periods have been made. Certain information and footnote disclosure, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted. The consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended July 31, 2014 and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The consolidated balance sheet at July 31, 2014 has been derived from the audited financial statements at that date. The results of operations for the three and six months ended January 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2015.

XML

Stockholders' Equity (Details) - Schedule of stock option plans (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jan. 31, 2015
Schedule of stock option plans [Abstract]
Outstanding at July 31, 2014	1,155,910
Outstanding at July 31, 2014	$ 5.03
Awarded	383,873
Awarded	$ 3.57
Cancelled or expired	(180,900)
Cancelled or expired	$ 16.82
Outstanding at end of period	1,358,883
Outstanding at end of period	$ 3.06
Outstanding at end of period	3 years
Outstanding at end of period	$ 602
Exercisable at end of period	777,022
Exercisable at end of period	$ 2.89
Exercisable at end of period	1 year 292 days
Exercisable at end of period	$ 301

XML

Supplemental disclosure for statement of cash flows (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Supplemental Cash Flow Elements [Abstract]
Income Taxes Paid	$ 37	$ 17
Interest Paid	101	98
Installment Loans Financed Amount	57	154
Capital Lease Obligation Cost Basis	155
Adjustment to Additional Paid in Capital Stock Option Issued in Lieu of Cash Payment	$ 45

XML

Net loss per share (Details)	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Unvested Restricted Stock [Member]
Net loss per share (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0	18,000	22,000
In the Money Stock Options [Member]
Net loss per share (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	411,000	0	438,000	0
Outstanding Options [Member]
Net loss per share (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	52,000	1,341,000	97,000	1,032,000

XML

Stockholders' Equity (Details) - Schedule of restricted stock awards (USD $)	6 Months Ended
	Jan. 31, 2015
Schedule of restricted stock awards [Abstract]
Outstanding at July 31, 2014	42,502
Outstanding at July 31, 2014	$ 5.74
Awarded	$ 5.62
Awarded	3,000
Vested	(8,087)
Vested	$ (1.86)
Forfeited	(5,250)
Forfeited	$ (3.31)
Unvested at end of period	32,165
Unvested at end of period	$ 7.09

XML

Inventories (Details) - Schedule of inventory, current (USD $) In Thousands, unless otherwise specified	Jan. 31, 2015	Jul. 31, 2014
Schedule of inventory, current [Abstract]
Raw materials	$ 1,086	$ 1,092
Work in process	2,285	2,460
Finished products	4,912	5,138
	$ 8,283	$ 8,690

XML

Goodwill and intangible assets (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jan. 31, 2015	Jul. 31, 2014
Goodwill and intangible assets (Details) [Line Items]
Goodwill	7,452	$ 7,452
Intangible Assets, Amortization Period [Member]
Goodwill and intangible assets (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years 6 months

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Cash flows from operating activities:
Net loss	$ (7,820)	$ (6,353)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property, plant and equipment	1,014	1,099
Amortization of intangible assets	859	928
Provision for uncollectible accounts receivable	1,142	1,784
Deferred income tax benefit	(48)	(50)
Share-based compensation charges	203	212
Accrual for share-based 401(k) employer match expense	296	319
Foreign exchange loss (gain)	570	(319)
Changes in operating assets and liabilities:
Accounts receivable	(524)	(1,333)
Inventories	306	(381)
Prepaid expenses and other	524	512
Accounts payable – trade	(1,423)	345
Accrued liabilities, other current liabilities and other liabilities	(1,571)	(1,467)
Total adjustments	1,348	1,649
Net cash used in operating activities	(6,472)	(4,704)
Cash flows from investing activities:
Capital expenditures	(653)	(444)
Security deposits and other		(28)
Net cash used in investing activities	(653)	(472)
Cash flows from financing activities:
Net proceeds from issuance of common stock	5,341	4,244
Proceeds from borrowings under Credit Agreement	43,362	36,614
Repayments under Credit Agreement	(43,362)	(36,965)
Installment loan and capital lease obligation payments	(230)	(181)
Net cash provided by financing activities	5,111	3,712
Effect of exchange rate changes on cash and cash equivalents	(95)	78
Decrease in cash and cash equivalents	(2,109)	(1,386)
Cash and cash equivalents - beginning of period	17,455	9,007
Cash and cash equivalents - end of period	$ 15,346	$ 7,621

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Goodwill and intangible assets (Details) - Schedule of indefinite-lived intangible assets (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jul. 31, 2014
Indefinite-lived Intangible Assets [Line Items]
Gross	$ 28,036		$ 28,478
Accumulated Amortization	(20,914)		(20,370)
Net	7,122		8,108
Amortization expense	(859)	(928)
Amortization expense	(859)	(928)
Life Sciences [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross	28,036		28,478
Accumulated Amortization	(20,914)		(20,370)
Net	7,122		8,108
Amortization expense	(859)
Amortization expense	(859)
Foreign currency translation	(442)
Foreign currency translation	315
Foreign currency translation	$ (127)

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Stockholders' Equity (Details) (USD $)	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Dec. 31, 2014	Jul. 31, 2014
Stockholders' Equity (Details) [Line Items]
Common Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.01			$ 0.01
Maximum Offering Price Under Sales Agreement	$ 20,000,000		$ 20,000,000
Percentage of Commission Payable on Equity Offering	3.00%
Average Sale Price of Stock (in Dollars per share)	$ 4.89	$ 2.59
Proceeds from Issuance of Common Stock	5,341,000	4,244,000
Stock Offering and Commissions Expenses	169,000	131,000
Excess Tax Benefit from Share-based Compensation, Financing Activities	0	0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	700,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	21 months
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	100,000
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Outstanding Weighted Average Remaining Contractual Terms	18 months
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)	1,298,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 43,000	$ 381,000
Common Stock [Member]
Stockholders' Equity (Details) [Line Items]
Stock Issued During Period, Shares, New Issues (in Shares)	1,126,804	1,686,413

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jan. 31, 2015	Jul. 31, 2014
ASSETS
Cash and cash equivalents	$ 15,346	$ 17,455
Accounts receivable, net of allowances	11,795	12,470
Inventories	8,283	8,690
Prepaid expenses and other	1,593	2,121
Total current assets	37,017	40,736
Property, plant and equipment, net	7,567	7,730
Goodwill	7,452	7,452
Intangible assets, net	7,122	8,108
Other assets	385	385
Total assets	59,543	64,411
LIABILITIES AND STOCKHOLDERS’ EQUITY
Loan payable	3,013	3,013
Accounts payable – trade	6,840	8,245
Accrued liabilities	12,007	12,917
Other current liabilities	830	790
Total current liabilities	22,690	24,965
Deferred taxes	119	183
Other liabilities	1,872	2,313
Total liabilities	24,681	27,461
Commitments and contingencies
Stockholders’ equity:
Preferred Stock, $.01 par value; authorized 25,000,000 shares; no shares issued or outstanding
Common Stock, $.01 par value; authorized 75,000,000 shares; shares issued and outstanding: 45,374,074 at January 31, 2015 and 44,239,183 at July 31, 2014	454	443
Additional paid-in capital	322,738	317,160
Accumulated deficit	(290,217)	(282,397)
Accumulated other comprehensive income	1,887	1,744
Total stockholders’ equity	34,862	36,950
Total liabilities and stockholders’ equity	$ 59,543	$ 64,411

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Income taxes (Details)	3 Months Ended	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2015
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	2.70%
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent		34.00%

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Jul. 31, 2014	$ 443	$ 317,160	$ (282,397)	$ 1,744	$ 36,950
Balance (in Shares) at Jul. 31, 2014	44,239,183
Net loss for the period ended January 31, 2015			(7,820)		(7,820)
Vesting of restricted stock (in Shares)	8,087
Share-based compensation charges		203			203
Net proceeds from issuance of common stock (net of expenses of $169)	11	5,330			5,341
Net proceeds from issuance of common stock (net of expenses of $169) (in Shares)	1,126,804
Amortization of options in lieu of payment of cash bonuses		45			45
Foreign currency translation adjustments				143	143
Balance at Jan. 31, 2015	$ 454	$ 322,738	$ (290,217)	$ 1,887	$ 34,862
Balance (in Shares) at Jan. 31, 2015	45,374,074

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Loan Payable (Details) (USD $)	6 Months Ended
	Jan. 31, 2015	Jul. 31, 2014
Debt Disclosure [Abstract]
Line of Credit Facility Expiration Month and Year	December 2016
Line of Credit Facility, Maximum Borrowing Capacity	$ 8,000,000
Line of Credit Facility Additional Borrowings Capacity	4,000,000
Unamortized Debt Issuance Expense	281,000
Debt Instrument, Description of Variable Rate Basis	three month LIBOR rate, with a floor of 1.25% plus an applicable margin of 4.0%
LIBOR Rate Period	3 months
Debt Instrument, Basis Spread on Variable Rate	1.25%
Debt Instrument Margin on Variable Rate	4.00%
Debt Instrument Increase in Interest Rate on Default	3.00%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.50%
Line of Credit Facility Minimum Borrowings	2,000,000
Long-term Line of Credit	3,013,000	3,013,000
Line of Credit Facility, Remaining Borrowing Capacity	$ 1,900,000

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Inventories (Tables)

6 Months Ended

Jan. 31, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following:

	January 31, 2015		July 31, 2014
Raw materials	$	1,086	$	1,092
Work in process		2,285		2,460
Finished products		4,912		5,138
	$	8,283	$	8,690

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Accrued Liabilities and Other Current Liabilities (Details) - Accrued liabilities (USD $) In Thousands, unless otherwise specified	Jan. 31, 2015	Jul. 31, 2014
Accrued liabilities [Abstract]
Legal fee expense	$ 5,808	$ 4,721
Payroll, benefits, and commissions	3,116	4,959
Professional fees	627	638
Research and development	400	400
Other	2,056	2,199
	$ 12,007	$ 12,917

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Accrued Liabilities and Other Current Liabilities (Tables)

6 Months Ended

Jan. 31, 2015

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

Accrued liabilities consist of the following:

	January 31, 2015		July 31, 2014
Legal fee expense		5,808		4,721
Payroll, benefits, and commissions	$	3,116	$	4,959
Professional fees		627		638
Research and development		400		400
Other		2,056		2,199
	$	12,007	$	12,917

Schedule of Other Current Liabilities [Table Text Block]

Other current liabilities consist of the following:

	January 31, 2015		July 31, 2014
Accrued legal settlement	$	400	$	400
Installment loans		281		241
Capital lease obligations		149		149
	$	830	$	790

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parentheticals) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jan. 31, 2015
Issuance of common stock, expenses	$ 169
Common Stock [Member]
Issuance of common stock, expenses	169
Additional Paid-in Capital [Member]
Issuance of common stock, expenses	$ 169

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CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Jan. 31, 2015	Jul. 31, 2014
Preferred Stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized	25,000,000	25,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	75,000,000	75,000,000
Common Stock, shares issued	45,374,074	44,239,183
Common Stock, shares outstanding	45,374,074	44,239,183

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Stockholders' Equity

6 Months Ended

Jan. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 9 – Stockholders’ Equity

Controlled Equity Offering

On March 28, 2013, the Company entered into a Controlled Equity Offering^SM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co., as sales agent (“Cantor”). Under the Sales Agreement, the Company may offer and sell, from time to time, through Cantor, shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), having an aggregate offering price of up to $20.0 million (the “Shares”). The Company will pay Cantor a commission of 3.0% of the aggregate gross proceeds received under the Sales Agreement. The Company is not obligated to make any sales of the Shares under the Sales Agreement. The offering of Shares pursuant to the Sales Agreement will terminate upon the earlier of (a) the sale of all of the Shares subject to the Sales Agreement or (b) the termination of the Sales Agreement by Cantor or the Company, as permitted therein. The Shares were initially issued pursuant to the Company’s Registration Statement on Form S-3 which was declared effective on August 5, 2010 and a prospectus supplement, dated March 28, 2013, and more recently under the Company’s current Registration Statement on Form S-3 which was declared effective on August 13, 2013 and a prospectus supplement dated August 1, 2013, filed by the Company with the Securities and Exchange Commission (the “SEC”).

During the six months ended January 31, 2015, the Company sold an aggregate of 1,126,804 shares of Common Stock under the Sales Agreement at an average price of $4.89 per share and received proceeds of approximately $5.3 million, net of expenses of $169. For the six months ended January 31, 2014, the Company sold an aggregate of 1,686,413 shares of Common Stock under the Sales Agreement at an average price of $2.59 per share and received proceeds of approximately $4.2 million, net of expenses of $131.

On December 31, 2014, the Sales Agreement was amended in order for the Company to offer and sell, through Cantor, acting as agent, additional shares of Common Stock having an aggregate offering price of $20.0 million.  In connection with the amendment to the Sales Agreement, the Company also filed with the SEC a prospectus supplement dated December 31, 2014.  As of January 31, 2015, the Company still had Common Stock remaining available for sale pursuant to the Sales Agreement and the prior prospectus supplement dated August 1, 2013.

Share-based compensation

The Company has an incentive stock option plan (the “1999 Plan”), an incentive stock option and restricted stock award plan (the “2005 Plan”), and a long term incentive share award plan, (the “2011 Incentive Plan”), which are more fully described in Note 10 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014. The 2011 Plan, which is the only plan from which awards may now be granted, provides for the award to eligible employees, officers, directors, consultants and other persons of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, performance awards, and other stock-based awards.

The amounts of share-based compensation expense recognized in the periods presented are as follows:

	Three months ended January 31,				Six months ended January 31,
	2015		2014		2015		2014
Stock options	$	91	$	63	$	176	$	110
Restricted stock		14		46		27		102
	$	105	$	109	$	203	$	212

The following table sets forth the amount of expense related to share-based payment arrangements included in specific line items in the accompanying statements of operations:

	Three months ended January 31,				Six months ended January 31,
	2015		2014		2015		2014
Cost of clinical laboratory services	$	2	$	2	$	3	$	4
Research and development		1		—		2		1
Selling, general and administrative		102		107		198		207
	$	105	$	109	$	203	$	212

0 excess tax benefits were recognized during the six month periods ended January 31, 2015 and 2014.

Stock Option Plans

The following table summarizes stock option activity during the six month period ended January 31, 2015:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (000s)
Outstanding at July 31, 2014		1,155,910		$	5.03
Awarded		383,873		$	3.57
Exercised		—		$	—
Cancelled or expired		(180,900	)	$	16.82
Outstanding at end of period		1,358,883		$	3.06		3.0 years	$	602
Exercisable at end of period		777,022		$	2.89	1.8 years		$	301

As of January 31, 2015, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $0.7 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is twenty-one months.

The intrinsic value of stock option awards that vested during the fiscal year represents the value of the Company’s closing stock price on the last trading day of the fiscal year in excess of the exercise price multiplied by the number of options that vested.

Restricted Stock Awards

A summary of the activity pursuant to the Company’s unvested restricted stock awards for the six months ended January 31, 2015 is as follows:

	Awards			Weighted Average Award Price
Outstanding at July 31, 2014		42,502		$	5.74
Awarded		3,000		$	5.62
Vested		(8,087	)	$	(1.86	)
Forfeited		(5,250	)	$	(3.31	)
Unvested at end of period		32,165		$	7.09

The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of January 31, 2015, there was approximately $0.1 million of unrecognized compensation cost related to unvested restricted stock-based compensation to be recognized over a weighted average remaining period of approximately eighteen months.

The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 1,298,000 shares as of January 31, 2015.

The fair value of the awards that vested during the six months ended January 31, 2015 and 2014 was $43 and $381, respectively.

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Document And Entity Information	6 Months Ended
	Jan. 31, 2015	Mar. 02, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	ENZO BIOCHEM INC
Document Type	10-Q
Current Fiscal Year End Date	--07-31
Entity Common Stock, Shares Outstanding		45,374,000
Amendment Flag	false
Entity Central Index Key	0000316253
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jan. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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Income taxes

6 Months Ended

Jan. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 10 - Income taxes

At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods.

The Company’s effective tax rate benefit for the three months ended January 31, 2015 was 2.7% compared to a deminimus benefit during the three months ended January 31, 2014. The Company’s effective tax rate provision was deminimus for the six months ended January 31, 2015 and 2014. The tax provision or benefit for the periods was based on state, local and foreign taxes, net of the benefit for amortization of foreign intangibles. The Company’s effective tax rate for both periods differed from the expected net operating loss carryforward benefit at the U.S. federal statutory rate of 34% primarily due to the inability to recognize such benefit. The carryforward benefit cannot be recognized because of uncertainties relating to future taxable income in terms of both its timing and its sufficiency, which would enable the Company to realize the federal carryforward benefit.

The Company files a consolidated Federal income tax return. The Company files combined returns with California, Michigan and New York State and City for certain subsidiaries. Other subsidiaries file separate state and foreign tax returns. With few exceptions, the periods that remain subject to examination are fiscal years ended July 31, 2011 through July 31, 2014.

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Revenues:
Clinical laboratory services	$ 14,725	$ 13,848	$ 30,547	$ 28,707
Product revenues	7,723	8,054	15,725	15,717
Royalty and license fee income	644	1,026	1,644	2,637
Total revenues	23,092	22,928	47,916	47,061
Operating expenses:
Cost of clinical laboratory services	9,246	9,292	19,376	19,001
Cost of product revenues	3,818	3,865	7,513	7,712
Research and development	834	832	1,625	1,649
Selling, general, and administrative	9,670	10,084	19,955	20,612
Provision for uncollectible accounts receivable	601	912	1,142	1,784
Legal fee expense	2,804	1,496	5,270	2,877
Total operating expenses	26,973	26,481	54,881	53,635
Operating loss	(3,881)	(3,553)	(6,965)	(6,574)
Other income (expense):
Interest	(49)	(52)	(118)	(114)
Other	(17)	15	2	76
Foreign exchange (loss) gain	(259)	20	(731)	317
Loss before income taxes	(4,206)	(3,570)	(7,812)	(6,295)
Benefit (provision) for income taxes	115	4	(8)	(58)
Net loss	$ (4,091)	$ (3,566)	$ (7,820)	$ (6,353)
Net loss per common share:
Basic and diluted (in Dollars per share)	$ (0.09)	$ (0.09)	$ (0.17)	$ (0.15)
Weighted average common shares outstanding:
Basic and diluted (in Shares)	45,000	41,887	44,782	41,472

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Inventories

6 Months Ended

Jan. 31, 2015

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 4 - Inventories

Inventories consist of the following:

	January 31, 2015		July 31, 2014
Raw materials	$	1,086	$	1,092
Work in process		2,285		2,460
Finished products		4,912		5,138
	$	8,283	$	8,690

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Supplemental disclosure for statement of cash flows

6 Months Ended

Jan. 31, 2015

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Note 3 - Supplemental disclosure for statement of cash flows

For the six months ended January 31, 2015 and 2014, income taxes paid by the Company were $37 and $17, respectively. 

For the six months ended January 31, 2015 and 2014, interest paid by the Company was $101 and $98, respectively. 

For the six months ended January 31, 2015 and 2014, the Company financed $57 and $154 respectively, in machinery and transportation equipment under installment loans. 

During the six months ended January 31, 2015, there was a total of $155 in capital lease agreements. During the six months ended January 31, 2014, the Company did not enter into any capital lease agreements.

During the six months ended January 31, 2015, the Company recorded $45 in additional paid in capital and reduced accrued liabilities by the same amount for options previously issued in lieu of cash payment of certain incentive compensation awards.

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Goodwill and intangible assets (Tables)

6 Months Ended

Jan. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived Intangible Assets [Table Text Block]

The Company’s change in the net carrying amount of intangible assets, all of which is included in the Life Sciences segment is as follows:

	Gross			Accumulated Amortization			Net
July 31, 2014	$	28,478		$	(20,370	)	$	8,108
Amortization expense		—			(859	)		(859	)
Foreign currency translation		(442	)		315			(127	)
January 31, 2015	$	28,036		$	(20,914	)	$	7,122

Schedule of Intangible Assets [Table Text Block]

Intangible assets consist of the following:

	January 31, 2015							July 31, 2014
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Patents	$	11,027	$	(10,793	)	$	234	$	11,027	$	(10,775	)	$	252
Customer relationships		12,343		(6,943	)		5,400		12,602		(6,565	)		6,037
Website and acquired content		1,027		(1,027	)		—		1,037		(1,037	)		—
Licensed technology and other		511		(422	)		90		537		(434	)		103
Trademarks		3,128		(1,729	)		1,398		3,275		(1,559	)		1,716
Total	$	28,036	$	(20,914	)	$	7,122	$	28,478	$	(20,370	)	$	8,108

Schedule of Useful Lives For Acquisitions [Table Text Block]

At January 31, 2015, information with respect to intangibles assets acquired is as follows:

	Useful life assigned Years			Weighted average remaining useful life
Customer relationships	8	15		5.5 years
Trademarks			5	2.5 years
Other intangibles	4	5		0.5 year

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Royalty and licensing income

6 Months Ended

Jan. 31, 2015

Royalty And Licensing Income [Abstract]

Royalty And Licensing Income [Text Block]

Note 11 – Royalty and licensing income

The Company’s Life Science segment has a license agreement with QIAGEN Gaithersburg Inc. (“Qiagen”) that began in 2005, whereby the Company earns quarterly royalties on the net sales of Qiagen products subject to the license until the expiration of the patent on April 24, 2018. During the three months ended January 31, 2015 and 2014, the Company recorded royalty income under the agreement of approximately $0.6 million and $1.0 million respectively. During the six months ended January 31, 2015 and 2014, the Company recorded royalty income under the agreement of approximately $1.6 million and $2.6 million respectively. 

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Accrued Liabilities and Other Current Liabilities

6 Months Ended

Jan. 31, 2015

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note 7 – Accrued Liabilities and Other Current Liabilities

Accrued liabilities consist of the following:

	January 31, 2015		July 31, 2014
Legal fee expense		5,808		4,721
Payroll, benefits, and commissions	$	3,116	$	4,959
Professional fees		627		638
Research and development		400		400
Other		2,056		2,199
	$	12,007	$	12,917

Other current liabilities consist of the following:

	January 31, 2015		July 31, 2014
Accrued legal settlement	$	400	$	400
Installment loans		281		241
Capital lease obligations		149		149
	$	830	$	790

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Goodwill and intangible assets

6 Months Ended

Jan. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 – Goodwill and intangible assets

At January 31, 2015 and July 31, 2014, the Company’s net carrying amount of goodwill, related to the Clinical Labs segment, is $7,452.

The Company’s change in the net carrying amount of intangible assets, all of which is included in the Life Sciences segment is as follows:

	Gross			Accumulated Amortization			Net
July 31, 2014	$	28,478		$	(20,370	)	$	8,108
Amortization expense		—			(859	)		(859	)
Foreign currency translation		(442	)		315			(127	)
January 31, 2015	$	28,036		$	(20,914	)	$	7,122

Intangible assets consist of the following:

	January 31, 2015							July 31, 2014
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Patents	$	11,027	$	(10,793	)	$	234	$	11,027	$	(10,775	)	$	252
Customer relationships		12,343		(6,943	)		5,400		12,602		(6,565	)		6,037
Website and acquired content		1,027		(1,027	)		—		1,037		(1,037	)		—
Licensed technology and other		511		(422	)		90		537		(434	)		103
Trademarks		3,128		(1,729	)		1,398		3,275		(1,559	)		1,716
Total	$	28,036	$	(20,914	)	$	7,122	$	28,478	$	(20,370	)	$	8,108

At January 31, 2015, information with respect to intangibles assets acquired is as follows:

	Useful life assigned Years			Weighted average remaining useful life
Customer relationships	8	15		5.5 years
Trademarks			5	2.5 years
Other intangibles	4	5		0.5 year

At January 31, 2015, the weighted average useful life of amortizable intangible assets is approximately 4.5 years.

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Loan Payable

6 Months Ended

Jan. 31, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 6 - Loan Payable

On June 7, 2013, the Company entered into a secured Revolving Loan and Security Agreement (the “Credit Agreement”) among the Company and certain of its subsidiaries, with Enzo Therapeutics as a guarantor, and Healthcare Finance Group, LLC (the “Lender).The Credit Agreement, which expires in December 2016, provides for borrowings against eligible US receivables, as defined, of the Clinical Lab and Life Science segments up to $8.0 million at defined eligibility percentages and provides for additional borrowings of $4.0 million for increased eligible assets. Debt issuance costs of $281 are being amortized over the life of the Credit Agreement. If the amount of borrowings outstanding under the revolving credit facility exceeds the borrowing base then in effect, or the Lender requires a reserve, the Company will be required to repay such borrowings in an amount sufficient to eliminate such excess. Interest on advances, payable monthly, is based on the three month LIBOR rate, with a floor of 1.25% plus an applicable margin of 4.0%, In the event of any default, the interest rate may be increased 3.0% over the current rate. The facility also carries a non-utilization fee of 0.50% per annum, payable monthly, on the unused portion of the Credit Agreement. The Credit Agreement requires a minimum borrowing of $2.0 million. At January 31, 2015 and July 31, 2014, the borrowings under the Credit Agreement related to the Clinical Labs and Life Sciences receivables aggregated $3.0 million with an additional availability of $1.9 million at January 31, 2015.

The Company’s obligations under the Credit Agreement are secured by primarily all the unencumbered U.S. assets of the Company, excluding buildings and intellectual property which the Lender has a negative pledge, and the capital stock of subsidiaries. The Credit Agreement includes customary affirmative and negative covenants and events of default and requires maximum levels of cash usage and minimum levels of liquidity, as defined, and provides for increased liquidity levels if operating results are not achieved. Negative covenants include among others, limitations on additional debt, liens, loans or investments, distributions, asset sales and affiliate transactions. Events of default include non-payment of principal and interest on debt outstanding, non-performance of covenants, material change in business, breach of representations, bankruptcy and insolvency, material judgments and changes in control. As of January 31, 2015, the Company is in compliance with the financial covenants.

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Other liabilities

6 Months Ended

Jan. 31, 2015

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Other Liabilities Disclosure [Text Block]

Note 8 – Other Liabilities

Other liabilities consist of the following:

	January 31, 2015		July 31, 2014
Accrued legal settlement	$	1,200	$	1,600
Capital lease obligations, net of short term		287		344
Installment loans, net of short term		385		369
	$	1,872	$	2,313

As of January 31, 2015, future minimum payments under the capital leases, net of interest of $45 aggregates $567, including a short term debt portion of $149 included in other current liabilities. Future minimum payments under the installment loans aggregate $575, including a short term portion of $281 included in other current liabilities. A total of $1.2 million was recorded as accrued legal settlement which is further discussed in Note 13 - Contingencies.

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Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions	6 Months Ended
	Jan. 31, 2015
Customer Relationships [Member] | Minimum [Member]
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]
Useful life assigned	8 years
Customer Relationships [Member] | Maximum [Member]
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]
Useful life assigned	15 years
Customer Relationships [Member]
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]
Weighted average remaining useful life	5 years 6 months
Trademarks [Member]
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]
Useful life assigned	5 years
Weighted average remaining useful life	2 years 6 months
Other Intangible Assets [Member] | Minimum [Member]
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]
Useful life assigned	4 years
Other Intangible Assets [Member] | Maximum [Member]
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]
Useful life assigned	5 years
Other Intangible Assets [Member]
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]
Weighted average remaining useful life	6 months

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Contingencies

6 Months Ended

Jan. 31, 2015

Loss Contingency [Abstract]

Contingencies Disclosure [Text Block]

Note 13 – Contingencies

On June 7, 2004, the Company and Enzo Life Sciences, Inc., filed suit in the United States District Court for the District of Connecticut against Applera Corporation and its wholly-owned subsidiary Tropix, Inc., which became Life Technologies, Inc. (NASDAQ:LIFE) and was acquired by Thermo Fisher Scientific, Inc. (NYSE:TMO) on February 3, 2014. The complaint alleged infringement of six patents relating to DNA sequencing systems, labeled nucleotide products, and other technology. Yale University is the owner of four of the patents and the Company is the exclusive licensee. These four patents are commonly referred to as the “Ward” patents. On November 12, 2012, a jury in New Haven found that one of these patents (United States Patent No. 5,449,667) was infringed and not proven invalid. The jury awarded $48.5 million for this infringement. On January 6, 2014, the judge awarded prejudgment interest of approximately $12.5 million and additional post-interest on the full amount will also be awarded starting November 7, 2012 until the total award is satisfied. The final award to Enzo could be reduced or be subject to possible claims from third parties. On February 3, 2014, Life Technologies filed a notice of appeal and the case was argued before the Court of Appeals for the Federal Circuit on November 6, 2014. There can be no assurance that the Company will be successful in this litigation. Even if the Company is not successful, management does not believe that there will be a significant adverse monetary impact on the Company.

As of August 1, 2014, the Company was engaged in litigation in the United States District Court for the Southern District of New York against two parties (and certain of their related companies), Roche Diagnostic GmbH (“Roche”), as plaintiff and declaratory judgment defendant, and Molecular Probes, Inc. (“Molecular Probes”). These cases were commenced in May 2004 and May 2003, respectively. The Company has asserted similar (with some differences) causes of action against Roche and Molecular Probes in these two cases, with the exception of a breach of contract claim only asserted against Roche. Roche seeks a declaratory judgment of non-breach and patent invalidity, while Molecular Probes seeks a declaratory judgment of patent invalidity against the Company. Roche has also asserted tort claims against the Company. The two cases were consolidated for pre-trial purposes in 2004 and there has been extensive discovery. In 2011, Roche and Molecular Probes moved for summary judgment of non-infringement regarding the Company’s patent claims. In 2012, those motions were granted in part and denied in part. In December 2012, Roche and Molecular Probes moved for summary judgment on the Company’s non-patent claims. Additional discovery was taken and the Company responded to the motions in May 2013. On December 6, 2013, the Court granted in part and denied in part Roche’s summary judgment motion. On October 22, 2014, the Court ordered that damages discovery concerning the Company’s remaining contract and patent claims and Roche’s claims should be completed by January 30, 2015, and expert discovery should be completed following the Court’s not-yet-issued claim construction ruling relating to two of the Company’s patents asserted against Roche. Roche dropped its tort claims during damages discovery. On January 30, 2014, Roche and the Company jointly moved the Court to extend the schedule for damages discovery until 50 days after the Court’s rulings on two pending motions concerning discovery. Also on December 6, 2013, the Court granted Molecular Probes’ motion for summary judgment dismissing the Company’s non-patent claims and its claims concerning one of its patents. The Company continues to assert patent infringement claims against Molecular Probes. On December 18, 2014, the Court ordered that damages discovery concerning the Company’s remaining patent claims and Molecular Probes’ counterclaims should be completed by March 31, 2015, and expert discovery should be completed by June 30, 2015. The Company’s former counsel, Greenberg Traurig LLP, is also engaged in litigation against the Company in the United States District Court for the Southern District of New York concerning Greenberg Traurig’s request for a charging lien relating to its representation of the Company in these two and other cases.

On June 20, 2014 the Company, as plaintiff finalized and executed a settlement agreement with PerkinElmer, Inc., and PerkinElmer Health Sciences, Inc. (formerly known as PerkinElmer Life Sciences, Inc.) (together, “PerkinElmer”), with respect to an action between the Company and PerkinElmer before the U.S. District Court, Southern District of New York, Case No 03-CV-3817. PerkinElmer paid $7.0 million in escrow pursuant to the agreement because of a former counsel’s motion requesting a charging lien for fees allegedly owed for past services rendered to the Company. Because the settlement proceeds are held in escrow, the Company did not include the settlement or any additional amounts which may be payable to the attorney in the financial statements as of and for the fiscal year ended July 31, 2014 or for the six months ended January 31, 2015.

As previously disclosed, in 2012, the Company received a Subpoena Duces Tecum (the “Subpoena”) from the Department of Health and Human Services, Office of Inspector General (“OIG”). The Subpoena was issued as part of an investigation being conducted by the US Attorney’s Office for the Eastern District of New York in conjunction with the OIG. While a number of potential issues were raised initially by the government, the investigation came to focus primarily on an alleged failure to collect diagnosis codes from physicians who ordered tests through Enzo Clinical Labs. The time period initially covered by the investigation was from 2004 through 2011. In response to the Subpoena, the Company cooperated with the government. On September 22, 2014, the Company and the U.S. Department of Justice reached a settlement agreement to resolve this matter, in substantive form as disclosed in the Company’s fiscal quarter ended April 30, 2014. During the quarter ended April, 30, 2014, the Company recorded a charge of $2.0 million in the statement of operations under legal settlements, net within the Clinical Labs segment. The settlement amount will be paid with interest over a five-year period. As of January 31, 2015, the Company carried a balance of $0.4 million as other current liabilities and $1.2 million as a non-current liability. Under certain circumstances, the Company may be required to accelerate payments and/or pay up to an additional $1.5 million based upon (i) a favorable recovery and collection related to the judgment in the Life Technologies matter discussed above, (ii) receipt of additional capital greater than $10.0 million in a fiscal year (in that case, the Company is required to pay 20% of any amount over $10.0 million plus interest, or (iii) sale of the Company. The final settlement covers the time period 2004-2014.

The Company is party to other claims, legal actions, complaints, and contractual disputes that arise in the ordinary course of business. The Company believes that any liability that may ultimately result from the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on its financial position or results of operations

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Stockholders' Equity (Tables)

6 Months Ended

Jan. 31, 2015

Stockholders' Equity Note [Abstract]

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

The amounts of share-based compensation expense recognized in the periods presented are as follows:

	Three months ended January 31,				Six months ended January 31,
	2015		2014		2015		2014
Stock options	$	91	$	63	$	176	$	110
Restricted stock		14		46		27		102
	$	105	$	109	$	203	$	212

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

The following table sets forth the amount of expense related to share-based payment arrangements included in specific line items in the accompanying statements of operations:

	Three months ended January 31,				Six months ended January 31,
	2015		2014		2015		2014
Cost of clinical laboratory services	$	2	$	2	$	3	$	4
Research and development		1		—		2		1
Selling, general and administrative		102		107		198		207
	$	105	$	109	$	203	$	212

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes stock option activity during the six month period ended January 31, 2015:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (000s)
Outstanding at July 31, 2014		1,155,910		$	5.03
Awarded		383,873		$	3.57
Exercised		—		$	—
Cancelled or expired		(180,900	)	$	16.82
Outstanding at end of period		1,358,883		$	3.06		3.0 years	$	602
Exercisable at end of period		777,022		$	2.89	1.8 years		$	301

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

A summary of the activity pursuant to the Company’s unvested restricted stock awards for the six months ended January 31, 2015 is as follows:

	Awards			Weighted Average Award Price
Outstanding at July 31, 2014		42,502		$	5.74
Awarded		3,000		$	5.62
Vested		(8,087	)	$	(1.86	)
Forfeited		(5,250	)	$	(3.31	)
Unvested at end of period		32,165		$	7.09

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Contingencies (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended		6 Months Ended	21 Months Ended	12 Months Ended	3 Months Ended
	Nov. 30, 2012	Jun. 30, 2004	Jan. 31, 2015	Jun. 30, 2004	Jul. 31, 2014	Apr. 30, 2014	Jun. 20, 2014
Contingencies (Details) [Line Items]
Gain Contingency, Patents Allegedly Infringed upon, Number		6
Number of Licensee Patents			4
Gain Contingency, Patents Found Not Infringed upon, Number	1
Gain Contingencies Prejudgement Interest			$ 12.5
Loss Contingency, Number of Defendants				2
Extended Period of Schedule for Damages Discovery			50 days
Indemnification Agreement [Member]
Contingencies (Details) [Line Items]
Gain Contingency, Unrecorded Amount			48.5
Subpoena [Member] | Minimum [Member]
Contingencies (Details) [Line Items]
Litigation Settlement Period					2004
Amount of Additional Capital Receipt Condition for Litigation Settlement					10.0
Subpoena [Member] | Maximum [Member]
Contingencies (Details) [Line Items]
Litigation Settlement Period					2014
Subpoena [Member]
Contingencies (Details) [Line Items]
Investigation Period			The time period initially covered by the investigation was from 2004 through 2011
Estimated Litigation Settlement Amount						2.0
Period Over Which Settlement Amount Has to Be Paid						5 years
Estimated Litigation Liability, Current			0.4
Estimated Litigation Liability, Noncurrent			1.2
Additional Payment of Litigation Settlement Amount					1.5
Percentage of Additional Payment of Litigation Settlement Amount over Additional Capital Receipt					20.00%
Perkin Elmer [Member]
Contingencies (Details) [Line Items]
Escrow Deposit							$ 7.0

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Stockholders' Equity (Details) - Schedule of share-based compensation expense (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Stockholders' Equity (Details) - Schedule of share-based compensation expense [Line Items]
Stock Based Compensation Expense	$ 105	$ 109	$ 203	$ 212
Options [Member]
Stockholders' Equity (Details) - Schedule of share-based compensation expense [Line Items]
Stock Based Compensation Expense	91	63	176	110
Restricted Stocks [Member]
Stockholders' Equity (Details) - Schedule of share-based compensation expense [Line Items]
Stock Based Compensation Expense	$ 14	$ 46	$ 27	$ 102

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Net loss	$ (4,091)	$ (3,566)	$ (7,820)	$ (6,353)
Other comprehensive income (loss):
Foreign currency translation adjustments	35	(47)	143	(91)
Comprehensive loss	$ (4,056)	$ (3,613)	$ (7,677)	$ (6,444)

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Net loss per share

6 Months Ended

Jan. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 2 – Net loss per share

Basic net income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. The dilutive effect of potential common shares if any, consisting of outstanding stock options and unvested restricted stock is determined using the treasury stock method. Diluted weighted average shares outstanding for the three and six months ended January 31, 2015 and 2014, as a result of the net loss for each period, do not include the potential common shares from stock options and unvested restricted stock because to do so would be antidilutive, and as such is the same as basic weighted average shares outstanding.

During the three and six months ended January 31, 2015, potential shares from unvested restricted stock excluded from the computation of diluted net loss per share were approximately zero and 18,000 shares, respectively. During the three and six months ended January 31, 2014, potential shares from unvested restricted stock excluded from the computation of diluted net loss per share were approximately zero and 22,000 shares, respectively.

For the three and six months ended January 31, 2015, potential shares for “in the money” stock options excluded from the computation of diluted net loss per share were approximately 411,000 and 438,000 shares, respectively. For the three and six months ended January 31, 2014, there were 0 potential shares for “in the money” stock options excluded from the computation of diluted net loss per share.

For the three and six months ended January 31, 2015 the effect of approximately 52,000 and 97,000 shares respectively, of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. For the three and six months ended January 31, 2014 the effect of approximately 1,341,000 and 1,032,000 shares respectively, of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive.

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Segment reporting (Tables)

6 Months Ended

Jan. 31, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

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

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

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Other liabilities (Details) (USD $)	Jan. 31, 2015	Jul. 31, 2014
Other liabilities (Details) [Line Items]
Other Liabilities, Current	$ 830,000	$ 790,000
Accrued Legal Settlement	1,200,000
Capital Lease Obligation [Member] | Clinical Labs [Member]
Other liabilities (Details) [Line Items]
Capital Leases, Future Minimum Payments, Interest Included in Payments	45,000
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments	567,000
Other Liabilities, Current	149,000
Installment Loans [Member] | Clinical Labs [Member]
Other liabilities (Details) [Line Items]
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments	575,000
Other Liabilities, Current	$ 281,000

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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