Segment reporting

3 Months Ended

Oct. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 12 – Segment reporting

The Company has three reportable segments: Clinical Labs, Life Sciences, and Therapeutics. The Clinical Labs segment provides diagnostic services to the health care community. The Company’s Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Company’s Therapeutic segment conducts research and development activities for therapeutic drug candidates. The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative costs which are not allocable to the three reportable segments.

Legal fee expense incurred to defend the Company’s intellectual property and other general corporate matters is considered a component of the Other segment. Legal fee expense specific to other segments’ activities has been allocated to those segments. Legal settlements, net represent activities for which royalties would have been received by the Company’s Life Sciences segment had the Company had agreements in place with plaintiffs for the products covered by the settlements.

Management of the Company assesses assets on a consolidated basis only and, therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies contained in the Company’s Annual Report on Form 10-K for the year ended July 31, 2015.

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

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

Three months ended October 31, 2014	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	15,822			—			—			—		$	15,822
Product revenues		—		$	8,002			—			—			8,002
Royalty and license fee income		—			1,000			—			—			1,000
		15,822			9,002			—			—			24,824
Operating expenses:
Cost of clinical laboratory services		10,130			—			—			—			10,130
Cost of product revenues		—			3,695			—			—			3,695
Research and development		—			548		$	243			—			791
Selling, general and administrative		5,066			3,150			—		$	2,069			10,285
Provision for uncollectible accounts receivable		530			11			—			—			541
Legal fee expense		91			1			—			2,374			2,466
Total operating expenses		15,817			7,405			243			4,443			27,908
Operating income (loss)		5			1,597			(243	)		(4,443	)		(3,084	)
Other income (expense)
Interest		(27	)		2			—			(44	)		(69	)
Other		2			(8	)		—			25			19
Foreign exchange gain		—			(472	)		—			—			(472	)
Income (loss) before income taxes	$	(20	)	$	1,119		$	(243	)	$	(4,462	)	$	(3,606	)
Depreciation and amortization included above	$	357		$	560		$	1		$	20		$	938
Share-based compensation included in above:
Cost of clinical laboratory services	$	1			—			—			—		$	1
Research and development		—			1			—			—			1
Selling, general and administrative		9		$	—			—		$	87			96
Total	$	10		$	1			—		$	87		$	98
Capital expenditures	$	254		$	10		$	—		$	—		$	264